Fruitbowl - Fresh Ideas from Hawke's Bay

The Port of Napier has produced a solid profit despite the economic recession affecting trade throughput.

Port of Napier chairman Jim Scotland announced today an annual tax paid profit of $8.95 million for the year ended September 30 2009.

Mr Scotland said the result reflected a drop in cargo throughput to 2.893 million tonnes (down 9.1%) and lower ship numbers. The port had weathered the economic recession well with export volumes growing by 1.5%, spearheaded by a 16.2% increase in log throughput to 729,493 tonnes.

Other notable export volume increases were apple and pears at +29.7% and fresh produce at +21.4%.

 “We’re pleased with the result, it’s against the tide of the recession and we’re now well placed to drive the business forward following the recent opening of the new large multi-purpose berth development.

“The result is in line with what we budgeted, so it’s good news for the region and our stakeholders.

Last year’s record result of $9.788 million included several one off gains as reported at that time, therefore this year compares very favourably with the normalised result of $9.177m,” Mr Scotland said.

Another feature was the increased business from dairy leader Fonterra, which has consolidated its port usage in a drive towards greater supply chain efficiency. Fonterra is seeking to improve service to its global customers by moving increased volumes to leading container ports such as Napier, which offer a wide range of direct shipping services.

Import volumes fell 33.5% to 647,082 tonnes. This included a 59% reduction in bulk fertiliser due to less demand and adverse climatic conditions. 

The company’s balance sheet remains strong after dividend payments of $7.1 million and capital expenditure of $40.5 million during the year. 

Port of Napier chief executive Garth Cowie said total container movements were similar to last year at 166,934 TEUs and against global trends where a majority of container terminals experienced declines of 15-20%.

“We fared quite well when you look at what has occurred around the world. Our last quarter was ahead of last year by 1.4%,” Mr Cowie said.

The rationalisation of container shipping services along with the decline in fertiliser imports and woodchip exports has seen overall ship calls reduce from 667 last year to 567 vessels.  Increased log vessels help offset the extent of the decline.

The Port continues to play its part in attracting cruise vessels to the region with 42 vessels arriving during the year with an estimated 50,000 passengers. 

 “The continued inclusion of Napier as a port of choice in several major container service restructuring announcements is particularly satisfying and reinforces the support and value of key exporters and importers,” Mr Cowie said.

The port is optimistically looking forward and the $45 million multi-purpose Herrick No.4 wharf will enable the ability to handle forecast throughput growth. Other capital expenditure included the construction of a new Voith propulsion tug to be named Te Mata, which should be launched next year in Vietnam.

Board member Sam Robinson retires after 20 years service during which time the port has continued to grow and prosper.

“Sam leaves behind a legacy of passionate and dedicated service to the Port,” Mr Scotland said.

Results in Brief

Operating Highlights

• 1.5% growth in export tonnage
• 16% growth in log exports
• >20% growth in apple, fresh produce and dairy exports
• 166,934 TEUs handled in Container Terminal compared to virtually the same number last year: this compares favourably to most other ports globally in 2009
• Celebrity Lines 294 metre long ‘Millennium’ became the largest cruise vessel to visit Napier.
• Completion of first Infrastructure Master Plan, a pathway for port growth over the next 50 years
• Completion of the $45 million inner harbour development, under budget and 5 months ahead of schedule.
•  Building underway in Vietnam of a new Voith propulsion tug to be named “Te Mata”.