Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Results Of Our 2019/20 Audits Of Port Companies

The Auditor-General’s report Results of our 2019/20 audits of port companies was presented to the House of Representatives today. This report discusses trends that our audits of port companies identified.

It is difficult to compare port companies’ performance because of differences in their ownership, the size and

scale of their operations, and the way they measure their assets. We encourage port companies to consistently apply fair value in the valuation of property, plant, and equipment. This will help provide up-to-date relevant financial information and enable better comparison and transparency of port company financial performance.

Port companies face some major challenges, including their need to:

  • make major capital investments when the financial returns from those investments are uncertain;
  • continue to respond to international trends in freight and logistics; and
  • balance the potentially conflicting objectives of shareholders and other stakeholders.

As port companies look to the future, many are considering significant new investments. These might be to remain sustainable given international shipping trends or to cater for anticipated growth. There is considerable risk in these investments. To deliver their investment strategies, port companies must have robust and realistic business cases.

There is also a risk that, without a comprehensive supply chain strategy for the freight logistics sector, port companies will anticipate growth that competing port companies might have also factored into their business cases. Stranded assets, underperforming capital, and low returns or further asset write-downs are a possible consequence of this.

We encourage port company boards – and, where appropriate, their shareholders – to robustly assess the merits of significant capital investments before approving them. This is to ensure that the assumptions these investments are based on are realistic and are the best use of shareholder capital.

This report is accompanied by an interactive map showing import and export data, and financial data for each port.

© Scoop Media

Business Headlines | Sci-Tech Headlines


Energy: New Zealand Could Be World’s First Large-scale Producer Of Green Hydrogen

Contact Energy and Meridian Energy are seeking registrations of interest to develop the world’s largest green hydrogen plant. The plant has the potential to earn hundreds of millions in export revenue and help decarbonise economies both here and overseas... More>>

MBIE: 36th America’s Cup Post-event Reports Released

Post-event reporting on the 36th America’s Cup (AC36) has been released today. The reports cover the delivery of the event by Crown, Council and America’s Cup Event Limited, economic impacts for Auckland and New Zealand, and delivery of critical infrastructure... More>>

Fonterra: Farmer Feedback Set To Shape Revised Capital Structure Proposal

With the first phase of Fonterra’s capital structure consultation now complete, the Co-op is drawing up a revised proposal that aims to reflect farmers’ views. A number of changes are being considered to the preferred option initially put forward in the Consultation Booklet in May... More>>

Statistics: Household Saving Falls In The March 2021 Quarter

Saving by New Zealanders in the March 2021 quarter fell to its lowest level in two years after rising sharply in 2020, Stats NZ said today. Increases in household spending outpaced income growth, leading to a decline in household saving from the elevated levels that prevailed throughout 2020... More>>