The move would be a major departure for Port Otago, in that its Otago assets are at present all in Port Chalmers and its property holdings in Dunedin city.
After Port Otago successfully exited its contentious 15.8% stake in rival Lyttelton Port of Christchurch recently, it used the $66.5 million proceeds to pay off debt, leaving it with just $5 million owing and its property company, Chalmers Properties, with about $40 million.
In its annual report to 100% owner the Otago Regional Council yesterday, Port Otago chairman Dave Faulkner outlined that in early November, management would consider ''all opportunities'' to ''improve assets quality''.
''Ideally, an investment creates jobs in Otago and means containers for us ... we could make an investment anywhere in the region,'' he said.
He told the assembled councillors that for commercial confidentiality reasons, he could not go into further details of the what those ''opportunities'' might be.
Following the annual meeting, Mr Faulkner remained reluctant to identify exactly what sectors Port Otago could move into.
He was asked if that meant buying commercial properties in Otago, or going directly into the agri-sector or other businesses.
''I can't, at present, rule out any of those,'' Mr Faulkner said.
Mr Faulkner confirmed that if any investments were made, ''prudent debt'' facilities would be used to finance acquisitions, given Port Otago did not want to be seen with ''a lazy balance sheet'': having too little debt.
For its year to June, Port Otago's revenue declined from $78 million to $77.3 million. After-tax profit fell from $38.1 million to $31.8 million.
The overall $31.8 million profit includes a boost to property valuations for Chalmers Properties of $14.9 million, which were unrealised. Without property revaluation or tax, the year's operating profit was down from $21.3 million to $21 million.
While there was a record tonnage of logs across the wharf of 789,000 tonnes, the crucial container handling was down 7% to 181,300 (20ft equivalent) containers handled.
Mr Faulkner attributed the after-tax profit dip largely to the decline in transhipped (empty) containers.
However, he was ''reasonably confident'' that next year's container numbers would rise. When asked, he declined to be specific on what would generate that gain.
Cr Gerry Eckhoff questioned Mr Faulkner and Port Otago chief executive Geoff Plunket over tax issues, and asked whether Port Otago paid capital gains on profits from numerous Chalmers Properties sales.
Mr Plunket said Chalmers Properties ''paid tax as it went'' and it was not separated out in its balance sheet. It took legal advice as each sale proceeded.
The councillors were told of the $27 million purchase of a Bunnings site in Auckland, which is leased back for 15 years at $1.9 million annual rental, and two Auckland sales for $5.8 million and $12.9 million.
The Bunnings site drove an overall 8% rental income increase for the year, to $13.7 million.
Mr Faulkner also highlighted a Chalmers $3.5 million build and lease-back project on the industrial foreshore, and $10 million from the sales of two leasehold properties during the year - leasehold sales having long been a bone of contention for some Dunedin developers.
Dunedin makes up 54% of the Chalmers property portfolio with $142 million, Auckland 36% with $95 million and Hamilton 10% with $28 million.
Recently in Hamilton, 2.2ha of the greenfield subdivision had been sold, with 9.5ha still to sell.
After the meeting, Mr Plunket expanded on an ''issue'' outlined to councillors, in which Port Otago disagreed with Inland Revenue over some of the money spent on soundproofing houses at Port Chalmers.
At stake was about $250,000, spread over several years, which was carried as a contingent liability on Port Otago's books without cash having been put aside.
Mr Plunket said Port Otago contended the cash spent was an ''operating cost'', while Inland Revenue considered it a ''capital payment'', so not non-deductable.
''It's not overly concerning and we're [continuing] to take advice,'' Mr Plunket said.
