New Zealand First leader Winston Peters prompted a firestorm of criticism this week with a proposal to relocate port operations from Auckland to Northport in Whangarei, which would probably be a multibillion-dollar venture.
The company’s revenue rose $11.3 million from $211.1 million last year to $222.4 million, reflecting increases in cargo volumes.Last year’s after-tax profit of $84million included a $17.6 million gain for an asset impairment reversal and a $54.3 million dividend was paid, while this year the dividend eased to $51.3 million.
Ports chief executive Tony Gibson described the year as providing "another solid result", and cargo was up across the board.
"Our trading profit and dividend are down slightly, reflecting the investments we’re making to prepare for the future," he said.
Work was started on Ports of Auckland’s Waikato freight hub, a third container berth was finished and the company was proceeding with partial automation of the container terminal, plus other investment in container terminal infrastructure, wharves and cranes.
However, the year had its challenges, Mr Gibson said. Auckland’s construction boom and growth had stretched capacity on general wharves and some ships had to wait at anchor, or alongside, before they could be unloaded.
The container terminal automation project was on track for completion in 2019. Mr Gibson said automation would increase the port’s container terminal capacity from 900,000 TEUs a year to 1.6 million-1.7 million TEUs.
"We estimate that on our existing land area we can handle up to 3 million TEUs, catering for an Auckland population of 5 million people," Mr Gibson said.
Rival Port of Tauranga last week reported New Zealand’s first handling of more than a million — 1.08 million — TEUs in a year, and moved 22.2 million tonnes of cargo across its wharves.
Ports of Auckland
2016-17 result
• Handled 1.8million tonnes of dry bulk cargo.
• Landed 297,383 cars and light commercial vehicles, up 20%.
• Moved 952,331 TEU (20ft equivalent containers), up 5%.
• Breakbulk and bulk volumes (including vehicles), up 11.4% to 6.46million tonnes.
• Hosts about 100 cruise ships, each worth about $1.5million to local economy.
Source: Ports of Auckland
