New Zealand's premier maritime gateway, Port of Tauranga, reported a significant 25% downturn in its half-year earnings, attributing the slump to a marked decrease in cargo throughput and a reduction in vessel arrivals. The port's financials revealed a net profit of $47.2 million, down from $62.7 million the previous year, with revenue also taking a hit, falling to $200 million from $211.9 million. The cargo volume saw a decline to 11.6 million tonnes from 12.7 million tonnes.
Despite a notable drop in imports by 23% and a 16% fall in container numbers, the export sector saw a slight uptick thanks to early harvesting prompted by cyclone damage. However, kiwifruit and dairy exports did not fare as well. Port of Tauranga's CEO, Leonard Sampson, highlighted the economic slowdown and reduced demand impacting import volumes, alongside increased competition from Port of Auckland, as key challenges. The port also faced headwinds from cost inflation in rail transport to Auckland and a normalization in global shipping schedules affecting container storage revenue.
Looking ahead, Sampson anticipates a challenging import sector but remains optimistic about export potential, especially for kiwifruit, bolstered by the operational commencement of the Ruakura inland port. Moreover, the port is progressing with plans for a new container berth at Sulphur Point, pending further engagement with local indigenous communities as mandated by the Environment Court.
Source: rnz.co.nz