Ports of Auckland lifts first-half dividend to $25.5m

Ports of Auckland, which settled a four-year dispute with the Maritime Union this week, has increased its interim dividend payment by 22 percent and is extending its wharves in anticipation of bigger ships and increased freight.

Profit rose to $28.9 million in the six months ended Dec. 31, from $26 million a year earlier, said the port company, which is owned by Auckland Council's investment arm. Sales rose to $108.6 million from $107.8 million. It will pay an interim dividend of $25.5 million, up from $20.94 million a year earlier.

Profit and sales lag behind those of Port of Tauranga, which yesterday posted first-half earnings of $42.6 million on sales of $136 million. Like its rival to the south, the Auckland port company is preparing for larger ships and larger volumes, with plans to extend the Fergusson container wharf, which will be serviced by faster truck facilities and rail services from its inland port at Wiri.

The company also plans to extend two berths on its Bledisloe Multi-Purpose Terminal and will start work this year on a new tug berth west of Jellicoe wharf. The expansion will help the port cope with car imports which are up 19 percent from a year ago, and cement volumes that are forecast to double in 2016.

In the first half, container volumes rose 3 percent to 490,723 TEU and breakbulk volumes gained 7.7 percent to 3.08 million tonnes. The number of cars that crossed its wharves rose to 118,765 from 99,710 a year earlier.

Chief executive Tony Gibson said he was pleased with growth in container traffic, which has been expected to fall with the loss of a Maersk shipping service to Tauranga.

"The company's high productivity and proximity to market had been key factors in retaining existing business and attracting new customers," Gibson said.

Workers belonging to the Maritime Union this week agreed at a stopwork meeting to a new collective employment agreement with the port company, ending a dispute that began in 2011 when the port attempted to impose greater flexibility and productivity across its wharves. During stoppages the port company actually lost freight business to Tauranga, although it has subsequently clawed some back.

The first-half results show employee costs rose to $29.1 million in the first half, from $28.3 million a year earlier. Other operating expenses, including contracted services, repairs and maintenance rose to $30.8 million from $28.5 million. Net cash flows from operating activities rose to $46.98 million from $42.9 million

(BusinessDesk)