Solid Result As Centreport Sets For Growth

CentrePort has achieved a solid result for FY22 while delivering on strategic objectives increasing resilience and adding new capacity to benefit the New Zealand logistics supply chain.

Financial result

CentrePort recorded an underlying net profit after tax (NPAT) which exclude Kaikōura earthquake-related items, changes in fair value, abnormal items and the tax impacts of these items – of $8.0m compared to $7.2m in FY21.

Revenue was $84.2m compared to $80.2m the previous year. The increased revenue and good cost management resulted in a 20.7 percent increase in net cash flows from operating activities.

A dividend of $6m (FY21: $5m excluding a special dividend of $15m) was paid to shareholders Greater Wellington Regional Council and Horizons Regional Council.

Health and safety

Chair Lachie Johnstone and Chief Executive Anthony Delaney said the health and safety of CentrePort’s people, and those they work with and use the port facilities, is integral to the port’s operations.

“Employee engagement and empowerment has resulted in continuous improvement in our health and safety culture over a period of years.

“In May CentrePort welcomed the joint Health and Safety at Work Act (HSWA) assessment by Maritime New Zealand and WorkSafe and supports the Tripartite Ports H&S Leadership Group, including the development of a Code of Practice.

“Overall, CentrePort performed well in the assessment, with documented procedures consistent with practice and vice versa. This reflects CentrePort’s philosophy of engaging with our workers and giving them full support to stop work if it looks or feels unsafe, or for them to stop others. Our people are empowered to develop and review the way we operate including investment into our critical risk,” they said.

Enhancing resilience, boosting the supply chain

Mr Johnstone said CentrePort introduced new capacity into and enhanced resilience of the New Zealand logistics supply chain system. This will help alleviate pressures for shippers and shipping lines being experienced in other ports.

“The new partnership with Port Marlborough announced in June creates supply chain solutions for customers in the Marlborough region. This will see the creation of a cargo hub, operational by 2024, with road and rail links to Port Marlborough.

“The catastrophic weather that hit the Nelson / Marlborough region this year reinforced the need for greater resilience in the supply chain, and wider options for importers and exporters which this new venture will provide.

“We continued investment in the existing inland hub network including the joint venture with Direct Connect in Whanganui and the log hub at Waingawa.

“CentrePort added to its capacity and capability, completing the reinstatement of Thorndon Container Wharf following the damage suffered in the 2016 Kaikoura earthquake. The project, delivered on time and on budget, doubles the operational length of the two ship-to-shore cranes.

“Resilience work continued on the port infrastructure with good progress on the Seaview Wharf fuel facility upgrade. Land improvement works on port continued with over 60 percent of 10,000 stone columns installed since the project began in 2017. This is prudent investment in ensuring key infrastructure is resilient for future years and events,” Mr Johnstone said.

CentrePort continued implementation of its energy strategy with the goal of the port being carbon neutral by 2040. This included the first full year of operation of the seven electric container movement vehicles, and the continued rollout of LED lighting towers.

Covid impacts constrain trade volumes

Mr Delaney said the Covid-19 related impacts that emerged in 2020 continued into a second year with global and local supply chain disruptions.

“That contributed to budgeted growth in the main trades – containers, logs and fuel – not being achieved with volumes slightly down on the previous year. Vehicles bucked the trend with record volumes for the port.

“Container volumes of 89,892 TEU were 2 percent down on last year. Global and local supply chains continued to be significantly disrupted as a result of the ongoing pandemic.

“Log export volumes of 1.74 million JAS (Japanese Agricultural Standard) was 6 percent down on last year’s record total. Log exports were impacted by decreased demand and high inventory levels in the Chinese market during the year.

“Fuel import volumes of 885k tonnes was 5 percent down due primarily to lower aviation fuel demand,” said Mr Delaney.

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