NEW Zealand's PORT of Tauranga (POT) has seen lower overall cargo volumes and a 24.7 per cent slide in net profits 'amid challenging trading conditions' for the six months ended December 2023.
The port's interim results showed a fall in earnings due mostly to a decline in imported and transshipped container numbers, combined with a rise in operating costs, including rail charges, reports Australia's Daily Cargo News.
Total trade volumes reduced 8.5 per cent compared with the first half of the 2023 financial year, to 11.6 million tonnes (down from 12.7 million tonnes). Container numbers reduced 15.8 per cent to 536,930 TEU, with transshipments falling 25.1 per cent to 119,848 TEU.
Direct dairy exports reached 949,687 tonnes, a 4.4 per cent decrease. However, log exports were boosted by 19.2 per cent to 3.6 million tonnes by the early harvesting and export of cyclone-damaged trees.
Group net profit after tax was NZD47.2 million (US$29.24 million), a 24.7 per cent decrease from NZD62.7 million in 1H23, while subsidiary and joint venture company earnings decreased 34.2 per cent to NZD4.8 million. Operating revenue was NZD200.0 million, a 5.6 per cent decrease from NZD211.9 million in the first half of the 2023 financial year. Operating expenses increased 2.0 per cent to NZD106.3 million.
PoT chair Julia Hoare said the first half of the financial year had seen a return to more normal operating conditions following a period of extreme supply chain congestion since late 2020.
'I'm pleased to report that since March 2023 we have managed to eliminate delays at the Tauranga Container Terminal with the gradual return to shipping schedule adherence after a long period of unreliability,' she said.
'Whilst we were impacted by delays caused by strike action in some Australian ports during the reporting period, service delivery to our customers continues to improve with productivity rates returning to pre-Covid levels.' Container productivity increased 5 per cent to an average of 30.5 moves per hour.
The outlook for the group for the second half of the 2024 financial year is expected to be mixed, PoT said. Domestic economic conditions remain challenging, and international conflicts are causing shipping delays and increases in freight costs.
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The port's interim results showed a fall in earnings due mostly to a decline in imported and transshipped container numbers, combined with a rise in operating costs, including rail charges, reports Australia's Daily Cargo News.
Total trade volumes reduced 8.5 per cent compared with the first half of the 2023 financial year, to 11.6 million tonnes (down from 12.7 million tonnes). Container numbers reduced 15.8 per cent to 536,930 TEU, with transshipments falling 25.1 per cent to 119,848 TEU.
Direct dairy exports reached 949,687 tonnes, a 4.4 per cent decrease. However, log exports were boosted by 19.2 per cent to 3.6 million tonnes by the early harvesting and export of cyclone-damaged trees.
Group net profit after tax was NZD47.2 million (US$29.24 million), a 24.7 per cent decrease from NZD62.7 million in 1H23, while subsidiary and joint venture company earnings decreased 34.2 per cent to NZD4.8 million. Operating revenue was NZD200.0 million, a 5.6 per cent decrease from NZD211.9 million in the first half of the 2023 financial year. Operating expenses increased 2.0 per cent to NZD106.3 million.
PoT chair Julia Hoare said the first half of the financial year had seen a return to more normal operating conditions following a period of extreme supply chain congestion since late 2020.
'I'm pleased to report that since March 2023 we have managed to eliminate delays at the Tauranga Container Terminal with the gradual return to shipping schedule adherence after a long period of unreliability,' she said.
'Whilst we were impacted by delays caused by strike action in some Australian ports during the reporting period, service delivery to our customers continues to improve with productivity rates returning to pre-Covid levels.' Container productivity increased 5 per cent to an average of 30.5 moves per hour.
The outlook for the group for the second half of the 2024 financial year is expected to be mixed, PoT said. Domestic economic conditions remain challenging, and international conflicts are causing shipping delays and increases in freight costs.
SeaNews Turkey
