Napier Port Continues Its Strong Performance

MEDIA RELEASE – Embargoed until 9am Monday February 27

Napier Port Continues Its Strong Performance

The Port of Napier has continued its strong performance as it today announced quarterly results for the period ending December 31, 2011.

Port of Napier chief executive Garth Cowie said following a very strong full year annual result to September 30 2011, the Port has continued its growth momentum, with quarterly tonnage lifting from 829,900 tonnes to 913,500 tonnes (+10%).

Container throughput has also continued its strong upward path, rising by 9.4% however underlying full TEU growth was 14.3% for the quarter.

“On a rolling 12 month throughput basis the container terminal is now handling 191,174 TEUs compared to the 180,285 TEUs 12 months ago, a 6% increase”, said Mr Cowie.

Not surprisingly, the port’s first quarter financial result reflected the increased volumes with a corresponding 10.5% rise in net profit before tax from $2.496m for the first quarter last year compared to $2.758m for the equivalent period this year.

Mr Cowie also provided some insight in the current issues impacting the sector.

“There are a number of concerns such as the financial plight of the international container shipping lines, the resilience in the log trade to the high US/NZ dollar cross rate and the likelihood of some flow on benefits, at least in the short term, from the industrial disruption in the upper North Island.”

“Obviously the Port is working aggressively to secure these gains long term”, he noted.

The quarterly result was achieved prior to Fonterra and shipping line decisions to redirect dairy exports to Napier.

Mr Cowie also commented, “The Port was already moving on a number of initiatives to lift overall crane and vessel loading rates, as identified in the draft Productivity Commission Report but noted that real productivity was more than just the speed of loading containers.

The Port is justifiably proud of its achievements with its positive EVA (Economic Value Added) calculations over the recent past which were also highlighted by the Productivity Commission report”.

ends

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