NAPIER PORT REPORTS STRONG HALF YEAR  

 

Napier Port has reported a record Net Profit after Tax of $7.716 million, an increase of 51%, for the half year to 31 March 2014 ($5.089 million). Revenues increased 16% to $35.199 million ($30.260 million). Expenditure increased $1.297 or 5.6%.

“A combination of increased general cargo volumes and higher container throughput saw EBITDA (Earnings before Interest, Depreciation and Amortisation) lift 32% to $16.206 million ($12.316 million), “says Napier Port’s Chairman, Jim Scotland.

Mr Scotland says total cargo tonnage grew by 11.4% above the 2013 equivalent. Non-containerised throughput or general cargo increased by 13%, again driven by the forestry sector – logs in particular as well as wood pulp. Containers handled rose 16% in the first half with the rolling annual number at 222,149 TEUs, an annualised increase of 8.1%.

“Normally we would feel buoyant about a result such as this. However we note that it was achieved under trying circumstances during March for our staff and suppliers, trucking firms, exporters and shipping lines alike,” says Mr Scotland

 “March is the peak month of our trading year. Containerised throughput this year was 25% higher than March 2013 and 19% above the previous monthly record,” says Chief Executive Garth Cowie.

“Severe constraints led to congestion, significant inefficiencies and additional costs. Many factors, some unforeseen, combined to produce higher than forecast pressure on terminal facilities. Ultimately the Port did not have sufficient space or physical resources to handle the volumes in the manner our customers expected. While the issues were addressed quickly and April returned to normality, the focus is now on increasing container terminal capacity, to avoid any reoccurrence next year and in the future.” Mr Cowie said.

Mr Cowie indicated that a new empty container depot in Thames St Pandora should be ready by late this year, whilst on-port, a new vehicle booking system to regulate truck flows is under investigation along with express lanes for electronically pre advised containers. All the projects currently underway address capacity issues in one form or another, and form part of a wider Terminal Intensification Plan.

“It would be very remiss however in any review of the last six months, not to note the huge effort, commitment and goodwill of our staff to move record cargo volumes and achieve an outstanding result in difficult circumstances,” says Garth Cowie.

 ENDS

 Contact Garth Cowie, ph (06) 834 4400

Dated:  28 May 2014