South Port in Bluff is the latest port company to embark on creating an adjacent inland port to capture cargo and a ''modest facility'' is to be open by next July.
The effects of the dairying downturn remain unclear for South Port, which gave some financial guidance yesterday that after-tax profit for the 2016 financial year would be at ''a slightly lower level'' than the past's year's record $7.7million.
In a statement following its annual meeting in Bluff yesterday, chairman Rex Chapman said the port's strategy of diversifying its income streams had protected its revenue from present adverse economic cycles.
It had been rewarded by having diversified across container and bulk cargo transfers, warehousing, cold storage, property and infrastructure leasing.
Given the present difficult period for the dairy sector, Mr Chapman was ''pleasantly surprised'' with stronger than expected volumes of imported bulk cargoes, notably stock food and fertiliser, which had contributed to a record performance.
Cargo throughput was boosted 5% on a year earlier to 2.68million tonnes, after tax profit was up 15% and hit a record $7.7million.
Mr Chapman said with larger container ships coming soon to New Zealand, the ports able to host them would have to ''look beyond their own backyard'' for cargo to fill the ships.
''Inland ports and freight centres are the key to aggregating this cargo,'' he said.
South Port is to begin construction this summer of the Invercargill Freight Centre (IFC), at a 0.80ha site in Mersey St in Invercargill, next to to a rail head.
The target opening date is next July.
While it is ''modest by comparison'' to similar developments around the country - there are now at least five in operation - it was an important development in response to changes in the supply chain.
''As well as providing a cost-competitive and efficient import-export service for the southern region, the IFC would further diversify South Port's earnings,'' Mr Chapman said.
South Port was also ''working closely'' with shipping company MSC and had invested $6.5million in capital expenditure to retain MSC, including a second wharfside crane, which had improved port productivity.
Mr Chapman said the record result in 2015 underlined the contribution of bulk cargoes, with several aligned to the dairy sector.
The dairy sector had several ''spin offs'' for the port, including imports of fuel, fertiliser, bulk liquids and raw materials, aside from finished product exports.
''[However] the effects of the lower payout on stock food imports volumes are unclear,'' he said.
He noted the use of supplementary feed in Southland was lower than in other provinces and might be less affected.
