Despite container shipping disruptions and the absence of cruise ship visits caused by the ongoing effect of the Covid-19 pandemic, Napier Port has reported a record net profit of $23.2 million.

The "resilience and diversity" of its trade portfolio is being hailed as the reason for the  5.2 per cent increase.

Napier Port’s revenue for the year to September 30, 2021, rose 9 per cent to a record $109.5 million from $100.4 million in the same period a year ago, driven by increases in bulk cargo volumes and record log exports in particular. 

Bulk cargo revenue rose 32.7 per cent to $41.5 million from $31.3 million principally due to higher log volumes, which increased 27.6 per cent to a record 3.02 million tonnes. The average revenue per tonne improved due to tariff increases, one-off cost recoveries, and an improved cargo mix.

Container services revenue increased by 4.8 per cent to $65.3 million from $62.3 million, thanks to a 2.9 per cent increase in container volumes to 276k TEU[3] and improved average revenue per TEU.

Napier Port’s result from operating activities rose 6.4 per cent to $43.8 million from $41.2 million, with the unwinding of the protective cost-saving measures introduced at the start of the pandemic in 2020 and ongoing investment in capability to drive growth, together with costs associated with increased activity, partially offsetting the impact of revenue growth, Chair Alasdair MacLeod said.

"In the face of a global pandemic, lockdowns, global shipping congestion, disrupted shipping schedules and supply chains, Napier Port has over the last year again delivered on its commitments to its customers, its shareholders, and its region," Mr MacLeod said. 

“We have kept the cargo flowing and have moved record volumes, the majority of which was the food and fibre exports that underpin the prosperity of our region. Meanwhile, we have continued to invest in the infrastructure that will support our region and our customers for the long term."

The new 350m-long 6 Wharf is the "centrepiece" of this investment and is expected to be operational in the second half of the 2022 financial year, earlier than the contractual completion date in the first quarter of the 2023 financial year.

“Risks remain, but thanks largely to the more advanced stage of the project and the associated reduction in construction risk, we now expect the final cost to range between $173 million and $179 million, lower than our earlier estimate of $173 million to $190 million."

Chief Executive Todd Dawson said Napier Port has been more than resilient this year and has performed incredibly well under very challenging circumstances.

“I am immensely proud of the Napier Port team. Once again, they moved record volumes of cargo, working with customers to deliver supply chain solutions tailored to their needs and generated a strong financial result for shareholders. They did all of this while keeping each other and our community safe from the pandemic." 

He says their success in attracting cargo from outside Hawke’s Bay has been a factor in driving increased volumes. 

“This result is pleasing when it is considered against the challenges we faced within the global supply chain and container shipping trade. Charter vessel visits for the bulk trade increased to 343 up from 304 the previous year. In contrast, container ship visits fell to 242 compared to 293 in the year before resulting from the ongoing volatility in global shipping.

“Significantly, we hosted all these vessels while operating with reduced space on port due to the construction of 6 Wharf.

“We are delighted with the progress we have made on 6 Wharf. Cargo owners, and our regional economy, will benefit immediately from 6 Wharf. It will offer increased shipping capacity, the ability to handle more and larger vessels and improved availability across all our wharves, which will allow Napier Port to support the demands of our region today and the growth we see coming into the future.”

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