Port of Tauranga is in the early stages of reaping the benefits of its expansion in the North and South Islands, posting revenue and profit gains for its year to June.
As the country's largest port, by volume, POT is beginning its channel-deepening programme in October.
It expects 6500TEU (20-foot equivalent container units) vessels by late 2016 and predicts that from 2016-17 it will be handling more than 1million TEUs.
The intensity of port competitiveness was reflected earlier this week when Ports of Auckland announced it was opening an inland freight hub at Mount Maunganui, in direct competition with POT.
Auckland also has freight hubs in the Manawatu and South Auckland.
POT is nearing the end of a five-year $350million infrastructure upgrade, which includes a hinterland inland port, port investments, a Timaru port joint venture and channel dredging.
For 2015, POT booked $54.3million capital expenditure.
POT chairman David Pilkington said the port was now positioned for further growth as the ''final elements'' of infrastructure expansion were put in place to host the 6500TEU vessels.
''The programme, which has included the development of freight marshalling facilities across New Zealand as well as significant port infrastructure investment, has delivered increases in freight to the port from outside of our traditional catchments,'' he said.
Forsyth Barr broker Suzanne Kinnaird said the result was ''marginally ahead of expectations''.
She noted a July container volume increase of 19% had for the first time included ex-Timaru containers.
''Container volume growth will be slower for the remainder of the year,'' she said.
POT was strategically enhancing its cargo aggregation capabilities and together with Maersk and the Kotahi agreement in Timaru, was forcing the industry towards bigger ships.
''It's now well positioned to leverage its industry leadership position with a surge in container volumes in 2017 as Timaru transshipments arrive,'' Ms Kinnaird said.
Port Otago retains its beachhead in Timaru, running its own rail service to the port and, in return, is maintaining annual container numbers of about 5000 back to Port Chalmers.
Port Otago is similarly prepared to begin channel deepening and widening to accept 6500s, and Mr Pilkington expected the first 6500 visit next year, after dredging was completed.
Port of Tauranga's year at a glance
• Trade volumes up 2% to 20,179,078 tonnes.
• Container throughput up 12% to 851,106 TEUs.
• Transferred containers (ship to ship) up 17% to 203,417.
• Revenue up slightly from $266.5million to $268.5million.
• Earnings before interest, tax, depreciation and amortisation up 1.7% to $145million.
• After-tax profit up 1% to $79.1million.
• Awarded dredging contract to deepen harbour channel. 1555 ship visits.
SOURCE: POT
