New Zealand's South Port profit dips 4.3pc despite record cargo volumes

SOUTH PORT, New Zealand, has posted an after tax profit of NZD5.9 million (US$4.9 million) in the 12 months ending June 30, representing a 4.3 per cent drop from the NZD6.3 million net profit recorded a year earlier.

The company said revenue from port and warehousing operations totalled NZD26 million, an increase of four per cent on the NZD25.1 million achieved in the previous fiscal year.

The port experienced a 25 per cent lift in cargo volume and the ongoing gain in activity has been supported by employment of additional personnel, plant and infrastructure. The costs of the additional resources and higher insurance premiums resulted in a five per cent decline in operating profit to NZD8.3 million compared to NZD8.7 million in the previous fiscal year.

South Port chairman Rex Chapman said: "We were pleased to post another strong trading result aided by a primary produce sector that has demonstrated resilience. Total cargo volume passing through the port was at a record level for a second consecutive year."

However, containerised cargo slipped to 32,500 TEU from 33,000 TEU.

Said South Port CEO Mark O'Connor: "The global container shipping market sustained significant losses and this has necessitated both schedule and tariff rate realignment.

"Container shipping lines are entering business alliances and vessel sharing arrangements which are designed to reduce operating costs in what can only be described as a brutal freight market."

The company stressed that it will focus on cost containment in the current fiscal year, pointing out that New Zealand was not immune from global economic ills. South Port said in a statement that it did not expect any profit growth in 2013.