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Media Release - Port Nelson development plans continue amid strong cargo volume growth

Posted on 18/09/2017

 

Port Nelson has reported another strong result with an operating profit of $22.8 million as against a figure of $18.3 million in the previous year.

The Net Profit After Tax (NPAT) result was $10.8 million for the full financial year. Port Nelson Chairman Phil Lough reported to shareholders at the company’s AGM on Monday that overall cargo volumes were up for the year with logs, motor vehicles and wine related products all performing strongly. Processed forestry volumes were in line with the previous year and apple volumes were around 13% up on 2016 levels.

“Log volumes grew 30% in the last 12 months which has put significant pressure our Port Infrastructure” said Mr Lough who advised that Port Nelson is continuing to work with log exporters to try and increase the land available for log storage going forward.

The completion of the first stage of the Patterson Logistics Centre in February of this year, named after former Port Nelson Chairman Nick Patterson, also assisted the growth of wine industry related volumes which is set to continue when the 9,700m2 stage two development is completed in December of this year.

Container volumes also continued to grow with the 100,000 TEU level being passed for the first time. The weekly Maersk, Pacifica, MSC and ANL services were joined by the new Seatrade service in February of this year which also brought increased shipping options for the regions importers and exporters.

Cruise vessel numbers also improved during the year with seven vessels calling over the summer season.

A number of key infrastructure projects were completed during the financial year including:

• The Plant and Food Research development on Akersten St which opened in May 2017

• The new all-weather workshop facility on Rogers St which commenced operations in March 2017

• The first stage of the Patterson Logistics Centre which opened in February 2017

The long-awaited remediation of the Calwell Slipway area is due to get underway in early November at a total cost of around $8.2 million, to be jointly shared between Port Nelson and the Ministry for the Environment.

“Given the significant investment in infrastructure in recent years it is encouraging to see the growth in cargo volumes” Mr Lough said. The $4 million investment in the rationalisation of the Port Nelson log storage areas in 2016 is now being followed up by a further $3 million investment over the coming 12 months in terms of demolition of buildings and sealing of additional storage areas to maximise the log storage potential within the Port.

Highlights of the report to shareholders are:

• Revenue of $58.4 million

• Operating profit of $22.8 million

• Full Year declared dividend of $6.5 million

• Overall net profit after tax of $10.8 million

• Record container volumes of 108,106 TEU

Media enquiries please contact:
Phil Lough - Chairman Port Nelson Limited Ph 027 442 5447
Martin Byrne – Chief Executive – Ph 021 548 209