Greater cargo flows have prompted Southland port operator South Port to upgrade its profit forecast to the upper end of a range between $3.5 million and $3.9 million.
Chief executive Mark O'Connor told the New Zealand Stock Exchange that cargo flows in the first five months of this financial year were 1.090 million tonnes, well ahead of the 0.82 million tonnes at the same time a year earlier.
"This additional tonnage is attributable to strong Chinese log demand, higher than expected fertiliser application in the region and increased imports of stock food," he said.
Containerised cargo was also up, due to the MSC Capricorn service calling at Bluff, and Rio Tinto Alcan has reverted to normal production levels at the NZAS Tiwai aluminium smelter.
Mr O'Connor said shareholders were advised the 2011 after-tax profit would be in the range of $3.5 million to $3.9 million, but based on the performance to date, that was now expected to be closer to $3.9 million.
South Port would update its forecast when it releases its interim report on February 10.
Lyttelton Port is to spend $13.7 million on a purpose-built berth for cruise liners, funded by a passenger development levy which has been agreed between the port, Cruise New Zealand and cruise lines.
NZPA reported the the new 40m berth would have limited passenger facilities but increase the port's capacity outside the cruise season, which would assist with rebuilding after September's earthquake.
