Improved productivity boosts returns

21 August 2014
Media Release

Ports of Auckland 2013/14 Annual Results

Improved productivity boosts returns

Ports of Auckland has reported improved results for the year to 30 June 2014, reflecting increases in both labour productivity and volumes across all port operations.

• Trading profit before income tax was $73.5m, up 65.5% on last year’s result of $44.1m

• Net profit after tax of $74m is 90% up on last year’s result of $38.9m

• The declared dividend for the financial year is $66.6m, up 126% on the 2012/13 dividend of $29.5m

• Breakbulk (non-containerised) volume was up 26% on last year to 5.679m tonnes

• Container volumes increased by 18.3% to 968,741 from 818,819 TEU last year

“We had an outstanding year”, said Chief Executive Tony Gibson. “Container volumes recovered and the volume of non-containerised freight increased to record levels.”

“Productivity has been increasing since restructuring started in 2011 and has hit new highs this year. Productivity has been the key to our success right across the port, enabling us to smoothly handle record numbers of cars, containers and other freight.”

I would like to thank all our hard working and innovative staff for their help in this achievement.”

”While the past year has been good, the year ahead will be challenging. The growth in container volumes was a one off as we recovered from a low base and we will also lose volume after Maersk moved a major service away from Auckland.

This year we will be making strategic capital investments which will help us lift productivity and capacity further. These include a new tug, straddles and crane, a longer container wharf and a new truck grid.

We are building supply chain partnerships which will deliver greater efficiency and cost savings for importers and exporters. The recently announced joint venture with Napier Port and Icepak in an inland port at Palmerston North is one example. This site is perfectly placed to take advantage of the natural flow of the supply chain and a growing export base in the Manawatu-Whanganui region. We are developing our inland port at Wiri and will announce more supply chain partnerships in due course.”

“The future is reasonably positive for Auckland’s port. Auckland is growing and so is its freight demand. At the same time, competition in the port sector is growing and pressure from shipping companies on pricing is becoming more intense as that industry itself undergoes significant change.

We offer the shortest freight route to the Auckland market and we’re one of the most efficient ports in Australasia. The investments we are making now will boost that efficiency and we have more smart investment planned. With correct planning and a focus on efficiency and productivity, the business has much potential.”

Further information

• The port handled 968,741 TEU compared to 818,819 TEU in the previous financial year, a rise of 18.3%. Auckland remains the country’s largest container port

• Bulk and break bulk volumes went up to 5,679,325 tonnes, compared to 4,509,179 in the previous financial year, a rise of 26%

• Car numbers increased to 207,591 from 170,835 in the previous financial year, an increase of 22%

• Ship calls increased from 1,463 to 1,541, an increase of 5.3%

• The port recently took delivery of two new ‘eco-straddles’ with four more due later this year. The straddles are more fuel efficient and equipped with the latest driver assist technology to improve productivity

• Work on a 50m extension of the container wharf will begin in September, with completion due in late 2015. It will allow the handling of two next generation container ships at the same time. A new container crane will be ordered for the longer wharf

• A new truck grid is under construction and due for completion in late 2014. It is larger than the old grid and will allow more trucks to be processed faster

• A new tug (the Hauraki) was delivered this month and will enter service in September. More powerful, it will assist with the handling of larger ships

[Annual Review and Financial Statements]

ENDS

Ports of Auckland Ltd is the port for New Zealand’s largest city, Auckland. It is the country’s largest container port, handling 968,741 in FY 2013/14 TEU (1 TEU = 1 20ft container).

In the same period we also handled 5.679 m tonnes of break-bulk (non-containerised) cargo, including 207,591 cars. It is New Zealand’s import hub, its premier cruise port and the main vehicle import gateway.

A key partner to export and import industries, Ports of Auckland is 100%-owned by Auckland Council Investments Ltd, for the benefit of Auckland Ratepayers.

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