Ports of Auckland delivers $54M dividend to council 23 Aug 2016
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Environmental edge to Auckland’s RWC 2011 prep Sport
- Trams to make a comeback on Auckland’s streets News
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- Sludge Report #192: The Naked Budget Columns
- Budget 2010 – Building the Recovery News
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- OceanaGold finds new gold deposits at Fraser mine Business
Ports of Auckland delivers $54M dividend to council owner despite revenue drop
By Fiona Rotherham
Aug. 23 (BusinessDesk) - Auckland Council will receive a $54.3 million dividend from Ports of Auckland after the city's port operator announced a lift in full-year profit despite even as revenue fell with container volumes.
The payout, up $12.6 million on the previous year, equates to $103 per Auckland household or 4.4 percent of the average annual residential rates bill and takes total dividends in the past five years to $212 million. Chief executive Tony Gibson said the dividend was unlikely to be that high in 2017 with another challenging year ahead.
The Auckland Council-owned port company reported net profit of $84 million for the year ended June 30, up from $63 million a year earlier. Property revaluations delivered a $12.2 million gain, primarily due to improvements at its Wiri freight hub.
Gibson said the 2016 financial year proved as tough as anticipated, with revenue declining 3 percent to $211 million. Contributing factors included a 5.5 percent decline in bulk volumes and significantly lower ironsand exports due to reduced iron and steel prices.
This was partially offset by increased cement throughput, thanks to Auckland’s booming construction sector. Growth in new and used vehicle sales nationwide saw a 1.7 percent rise in imports of cars and other ‘high and heavy vehicles’ such as farm vehicles and machinery.
The port is likely to build a multi-storey carpark to stack imported cars within the next two years to create room on Bledisloe Wharf.
“We have to provide a better-looking port. That’s been made clear to me,” Gibson said.
The global container industry is facing continued difficulties, with too many container ships and not enough freight to fill them. Twelve of the world’s top 30 ports reported lower container volumes this year and Ports of Auckland posted a 7.9 percent drop. Still, rival Port of Tauranga had a 12 percent rise in container volumes in its latest year.
Globally, container throughput is expected to be flat in the 2017 financial year and the port expects its volumes will be flat or fall again, Ports of Auckland said.
Underlying expenses were $105 million, down $12.7 million. That included a $2.2 million recovery of the $7.3 million set aside to cover Bledisloe Wharf extensions after the High Court overturned consents granted by Auckland Council, with structural materials instead used in the Fergusson North berth project.
A study on the future of Auckland’s port concluded last month it should be allowed to extend the wharf to provide more berth space for general cargo and cruise ships, before being constrained to its current footprint. Gibson said the port has parked plans for a removable piled berth at the terminal’s northern end until the study is considered by the incoming council.
But Gibson said Auckland Tourism, Events and Economic Development is likely soon to lodge consents for a mooring dolphin that sits above the water line at the end of the terminal to handle longer cruise ships than the port can currently accommodate. Cruise ships hit 101 visits this year and are due to rise to 115 visits within two years.
Work has begun on partially automating the Fergusson container terminal, the first New Zealand port to do so. When completed in 2019, automated straddle carriers will be used to load and unload trucks and operate the container yard while manually driven straddle carriers will continue to work the yard and ship-to-shore cranes to maintain productivity levels.
Automation, along with changes to the terminal layout and the current reclamation project, are expected to increase the terminal capacity by 80 percent to around 1.6 to 1.7 million TEUs (20-foot equivalent units), though 50 stevedores will lose their jobs.
Part-automation of the terminal's existing straddle carriers has seen women stevedores lift productivity above their male counterparts as they've been quicker to use a self-guide stacking system that stops the containers banging around while being stacked while the men still prefer manually driving them despite it taking longer.
The port’s capital expenditure will more than double to $177 million in the next financial year from $81 million in 2016, as it completes the long-standing Fergusson expansion project by September next year and purchases three new key cranes to handle the extra capacity.
The rest of the spending is going on the new Waikato freight hub, part of the port’s strategy to develop a rail-connected North Island freight hub network. The port spent $23 million this year purchasing 33 hectares of land for the hub at Horotiu, north of Hamilton, and is now lodging resource consents to bring rail entry to the site and build paved areas for parking heavy vehicles.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more