News

Strong result positions CentrePort well for the future

30 August 2019

Media Release

Continued growth in CentrePort has delivered a strong result for the 2018/19 financial year.

Most major trade volumes increased significantly as CentrePort recorded an underlying profit after tax and before earthquake impacts, changes in fair value and realisation of financial instruments of $16.6m.

This is a 41 per cent increase from $11.8m the previous year. Shareholders were paid a dividend of $4m, compared to $2m last year.

The cruise boom continued with 110 vessels carrying 300,000 passengers and crew visiting the Capital – the first time the 100-visit mark has been passed in the port’s history.

A 27 per cent increase in log exports saw CentrePort hit a new record mark of 1.7 million JAS. Container volumes continued their bounce-back following the impacts of the 2016 earthquake with an 11 per cent increase, and for the third consecutive year the port handled a million tonnes of petroleum.

Chairman Lachie Johnstone said growth strategies, the hard work and resourcefulness of staff and strong support from customers in the local and regional economy combined to deliver the strong financial and operational performance.

“CentrePort has continued to deliver on its strategy to grow freight capacity, and to increase resilience. That is putting the business in a strong position to progress the CentrePort regeneration plan to deliver a 21st century logistics asset which will benefit the economy and the community.

“Good progress was made working with international and New Zealand-based experts to advance the regeneration plan. Valuable insights were gained from a wide range of stakeholders including customers, the community, local and national government.”

CEO Derek Nind thanked staff for continued improvements in health and safety performance as well as in productivity. Significant progress was made in environmental management, while medium term operating plan projects were advanced to pave the way for port regeneration.

“The $3m-plus investment into the Waingawa log hub in the Wairarapa is an example of continued growth of our logistics supply chain capacity. This will ultimately deliver up to a total of an additional 200,000 tonnes of rail capacity, as well as removing 30,000 truck movements over the Remutakas.

“Ensuring our business is sustainable and recognising our part in the guardianship of Wellington Harbour were major drivers for our activities. The highly successful waste minimisation programme which recycles waste materials from the demolition programme continued.

“Critical resilience work on key assets including Kings Wharf, Aotea Quay, and the Seaview fuel facility progressed. These involve significant investment and ongoing work in the years to come.

“The demolition programme continued to remove damaged and/or redundant assets. The programme creates space allowing for the reconfiguration of operations which in turn provides the opportunity to carry out repair/remediation work. A total of 15 structures have now been removed including the former cruise terminal in Shed 51, Sheds R & S, the Coldstore, and Shed 19 on Waterloo Wharf.

“Good progress was made on the earthquake insurance claim and we continue to work closely with our engineers and insurers. Two other claims involving joint venture activities have already been finalised.

“To 30 June 2019 CentrePort had received $444m across the three claims with a further $50m received in July and August 2019.

“CentrePort is in growth mode and well placed to push on with its vision for the future,” Mr Nind said.