Log export growth boosts port returns
Wednesday 28 Feb 2018Port of Tauranga continues to grow as an international hub port, resulting in increased trade volumes and profits for the first half of the 2018 financial year.
On Friday Port of Tauranga day announced a half year Net Profit After Tax of $47.1 million, a 12.6% increase on the same period last year, following strong growth in most cargoes.
Half year trade volumes grew 13.4% to 12.5 million tonnes, contributing to a 12.8% increase in revenue to $141.4 million for the six months ending December 2017.
Port of Tauranga Chair, David Pilkington, said the impressive results demonstrated the continued consolidation of a “hub and spoke” port network in New Zealand.
“Tauranga serves as a hub for New Zealand shippers looking to quickly and efficiently move cargo to and from North Asia, and South America via big ship services,” said Mr Pilkington.
“Tauranga is the only New Zealand port able to accommodate the larger container ships on these international services.”
Growth had accelerated following the September 2016 completion of a major dredging project that was the culmination of a $350 million expansion programme.
Bulk cargoes are also increasing in volume. Mr Cairns said export growth had been driven by logs, which were in high demand by China and attracting record prices. Cargo Trends
Log exports are buoyant on the back of strong demand from China and record prices for top quality logs. Volumes increased 12.5% to 3.3 million tonnes for the six month period.
Other forestry-related exports increased slightly, rising 2.6% to 1.1 million tonnes.
Dairy product exports increased 2.8%, while meat exports rose 17.3% in volume. Steel exports increased 40.9%.
The total number of containers handled increased 15.8% to 590,803 TEUs.
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