Auckland picks calmer seas

By Graeme Kennedy

Friday 12th March 2004

Ports of Auckland chief executive Geoff Vazey expects a strong full-year result despite the loss of NZ Asia Express' (NZAX) $2.5 million business to Tauranga.

"We are disappointed of course but you win and lose some every year," he said. "Contracts have moved from port to port over the years and will continue to do so. We and the competition are always competing for business Tauranga got that one and we will win others."

Vazey said overall business was growing and although container volumes would be affected "in the short term" by the NZAX departure Ports of Auckland returns would be maintained with cost control, containerisation growth and renewed marketing efforts. He said the company was committed to improving container-freight logistics and providing superior customer service.

Container volumes grew 3% in the half year to December to more than 344,000 20ft-equivalent units (TEUs), contributing to the port's $21.2 million after tax profit which was up 4%. Volumes for January usually a slower month were up 12%, indicating a strong second half.

Vazey said Auckland's import-to-export ratio was the country's most balanced at 60:40, which made the port attractive to shippers seeking maximum inbound and outbound cargo loads. He said an 8% increase in trans-shipped containers during the half-year indicated Auckland's growing importance as a regional cargo hub.

A trend toward larger container ships reduced the number of calls at Auckland by 7%. More of the super-sized 4200-TEU vessels were calling at the port but could enter only on high tide while the commercial shipping lane was being dredged.

Vazey said the programme was proceeding well with rock removed mechanically without the need for blasting and a contract for the main dredging work was expected to be let soon.

Ports of Auckland is persisting with its attempts to establish an inland port at Palmerston North to gain direct access to the southern North Island freight catchment area and plans to reopen talks with Tranz Rail's majority shareholder, Toll Holdings.

Meanwhile, Ports of Auckland has been listed among 250 companies worldwide on the FTSE4Good index in recognition of its social and environmental responsibility. Only two other ports are on the list, which includes four New Zealand-linked companies The Warehouse, Sky City Entertainment, Sanford and Westpac.

"Meeting the global responsibility criteria for this prestigious stock index series in a welcome reward," Vazey said.

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