Ports of Auckland posts little-changed 1H profit

Ports of Auckland posts little-changed 1H profit; volumes increase

March 11 (BusinessDesk) - Ports of Auckland posted little-changed first-half profit and said given ‘challenging’ conditions, import volumes probably won’t grow until later in calendar 2011.

The council-owned port company had ‘normalised’ profit of $14 million in the six months ended Dec. 31, compared to $13.9 million a year earlier. Sales rose 7% to $87.7million, it said in a statement.

Ports of Auckland is New Zealand’s largest gateway for imports, and claims the nation’s largest container terminal operations. In the first half, total container volumes rose 3.4% to 453,498 TEU (twenty-foot equivalent units). Bulk and breakbulk volumes rose 40% to 1.88 million tonnes. Total ship visits were little changed at 761.

In January and February, container volumes were little changed from the same period last year, while forward bookings for cruise ships were “encouraging” and vehicle imports “strong.”

“The trading environment in New Zealand and abroad remains challenging, however, and indicators suggest moderate import volumes with growth expected only later in the calendar year,” said chief executive Tony Gibson.

The port is still to trying to secure a long-term contract with Maersk Line, the biggest shipping line servicing New Zealand, to handle its container volumes, in what it called “an extremely competitive environment.”

“Long-term commitments are crucial for the port to be able to plan and invest for future growth,” Gibson said.

A spokesman for Maersk said the line has a current contract with the port and is talking about “what’s next.”

Ports of Auckland's arch rival Port of Tauranga posted its first-half results last month, with profit rising 23% to a record $28.4 million on export shipments to markets such as China.

The Tauranga-based company is the nation’s biggest export port so the difference between results of the two companies’ results reflects strong global demand for raw materials versus more tepid local consumption.

(BusinessDesk)

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