Despite challenges from less iron sand exports and the ongoing challenges the container industry has been experiencing due to ship construction outstripping trade growth, the Ports of Auckland saw net profit after tax drastically increase.
The Ports of Auckland reported a net profit after tax of $84 million for the financial year ending June 30, a $21 million increase from the corresponding period a year prior.
Revenues totaled $211.1 million, a $7.2 million decline from a year earlier.
Container volumes fell 6.7 percent year-over-year to 907,099 TEUs.
The Ports of Auckland faced a difficult market during the financial year, resulting from lower iron and steel prices, which lead to less iron sand exports, and the ongoing challenges the container industry has been experiencing due to ship construction outstripping trade growth, Port of Auckland CEO Tony Gibson explained.
“Our strategy has been to offer great service to customers, focus on improvements we can make through technological advancements, keep costs low and extend our reach into the supply chain so we can offer better value and service to freight owners,” Gibson said. “This is how we have been able to deliver strong results on lower volumes.”
Gibson added, “We are completing the container terminal infrastructure we will need to cater for larger ships. We will also start work to automate our container terminal, the first in New Zealand to do so.
“We are continuing to build our freight hub network. We have a cross-dock under construction at Wiri, South Auckland, and our Mt Maunganui Hub will open in September. We will soon lodge resource consent for enabling work at our Waikato freight hub, which will be our largest. This hub is ideally located in the fast growing Waikato region, with excellent links by road and rail north, south and east. Like all our hubs it will be port neutral and so it will help facilitate the movement of freight by the most efficient, natural supply chain.”
Ports of Auckland sees profit increase, revenues fall
