Record $155m profit for Port of Tauranga
It comes despite a slight drop in cargo volumes and struggles with insufficient capacity to handle ships and cargo.
The Port of Tauranga, New Zealand's largest port, has announced record underlying profits of $155 million for the 12 months ending June, despite a slight decline in cargo volumes and capacity challenges.
Chairperson Julia Hoare attributed the strong performance to the port's resilience amidst adverse economic conditions. The reported profit includes a one-off positive effect from repositioning two properties for sale. Notably, the prior year's profit included a $49.2 million gain from creating the Northport Group.
Cargo volumes saw a 3 percent decrease overall, with a slight increase in container volumes balancing out lower exports of timber due to Middle East disruptions and reduced coal imports for Genesis Energy as electricity generation stabilized. The port also achieved improved productivity by handling more cargo efficiently.
Hoare highlighted the port's anticipation of final confirmation on the Stella Passage development, a crucial national infrastructure project that will convert existing cargo storage land into berths on both sides of the harbour. This development is vital for the port's future growth and the growth of its cargo customers.
The company has long criticized the eight-year consent process for the Stella Passage, which has caused losses to the country in the form of hundreds of millions of dollars in potential business. Despite capacity constraints, the port expects improving economic growth and its diverse cargo base to drive increased earnings in the upcoming year.
However, ongoing geopolitical conflicts and trade uncertainty, particularly from the Middle East, pose challenges, with potential impacts on fuel prices and export industries like forestry.
Written by urgent.news from RNZ Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
