Port of Tauranga Limited has reported a mixed financial performance for the year ending June 30, 2024, showcasing resilience as New Zealand's largest port navigates a turbulent economic landscape and ongoing supply chain disruptions.

In its annual financial results released today, the Port revealed a total cargo volume of 23.6 million tonnes for the year, a decrease of 4.2% from 24.7 million tonnes in the previous year. Container volumes also saw a decrease of 2.5%, totaling 1,147,350 twenty-foot equivalent units (TEUs). However, the latter half of the financial year highlighted a significant rebound, with container volumes surging 13.7% and total trade rising by 3.3% compared to the first half.

The company reported an underlying Group profit of $102.7 million, reflecting a 12.8% decrease from last year’s $117.1 million. After accounting for a one-off deferred tax expense of $11.9 million due to changes in tax legislation, the Group Net Profit After Tax stood at $90.8 million.

Julia Hoare, Chair of Port of Tauranga, expressed optimism regarding the financial results, given the considerable economic challenges experienced during the year. “We faced significant volatility in demand, with notable increases in log and kiwifruit exports alongside sharp declines in imports,” she stated.

Despite worldwide shipping schedule unreliability, the port has shown improvements in operational efficiency. The average net crane rate rose by 7.9% to 30.1 container moves per hour, underscoring the Port's commitment to enhancing productivity and safety standards. With only 30% of vessels arriving on time, the Port’s focus on operational excellence is critical for stakeholders reliant on expeditious access to international markets.

Port of Tauranga continues to prioritise infrastructure improvements, recently celebrating the first anniversary of the Ruakura Inland Port in Hamilton, a partnership with Tainui Group Holdings, which has successfully streamlined operations with daily train services between Tauranga and MetroPort Auckland.

The results reflect a complex cargo environment, with imports declining by 13.3% to 7.8 million tonnes while exports saw a modest increase of 0.9% to 15.8 million tonnes. Key contributors to the export increase included significant rises in log and kiwifruit volumes, as well as strong meat demand, particularly from the United States.

The ongoing economic landscape presents challenges and opportunities. A notable rise in log exports was observed, spurred by the aftermath of Cyclone Gabrielle, which necessitated the harvesting of damaged trees. Conversely, dairy exports faced declines, influenced by commodity price pressures and reduced import volumes of fertilisers and stock feed.

The Port of Tauranga's outlook remains cautious amid global shipping congestion, particularly due to disruptions in Asia as ships divert from the Red Sea. Such challenges are expected to affect both cargo volumes and costs moving forward.

In anticipation of future energy demands, the Port is positioned to import alternative fuel sources, including a dedicated coal handling facility connected to the Genesis Energy power station.

Despite the many challenges, management remains confident in the Port's operational strengths and diverse revenue streams to navigate future uncertainties. Chief Executive Leonard Sampson remarked, “Our scale and resilience have again come to the forefront in these year-end results.”

With ongoing investments and a commitment to enhancing efficiencies, the Port of Tauranga stands resilient and ready to adapt to the evolving needs of New Zealand's economy and the global supply chain landscape.