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New Zealand ports and freight yearbook2016
1 Introduction 2 Glossary 4 Global economy 5 Global insights: From Deloitte Global 6 New Zealand economy 8 Industry focus 2015/16 16 New Zealand freight task 28 Port performance – Containers 29 Port performance – Port utilisation 30 Port performance – Financials 34 Port comparator tables 36 Port summaries 50 Deloitte financial advisory services – Focused expertise 51 Deloitte financial advisory services – Selected expertise 52 Deloitte infrastructure team – Contact us
Contents
IntroductionNew Zealand is a trading nation. Ports provide a vital link for 99.5% of its trade with international markets. From over 150 “ports” operating through its history, most have since been superseded by development of more efficient overland transport, or abandoned as unsuitable for evolving shipping requirements, notably ever larger ships. Of the twelve international ports that remain, a hierarchy is forming based on scale of throughput and service capability. Ports exist to service the needs of shippers (the owners of cargo) and their chosen shipping lines. These parties require infrastructure capable of efficiently handling their goods at competitive prices. Over time, technology changes like containerisation and larger ships have required ports to invest to meet these new demands. While ports are large enterprises in their own right, key port users are often more so and, particularly in relation to containers, able to choose from a range of ports.
Ports do not operate in a static or predictable environment. Trade flows are sensitive to economic cycles, with demand and competitiveness driving price. Having over-invested in capacity, shipping lines are currently under severe price and profitability pressure. Key export industries – most notably dairy – have softened. Technology is also changing port configurations to increase the capacity of existing terminals.
Core investment decisions include focussing on catering for growth and ever larger ships, and carry commercial risk. Investment decisions are subject to several forces. The Port Companies Act 1988, requires ports to be successful standalone businesses. Port users are seeking the best infrastructure, operated efficiently and at the lowest cost or they could go elsewhere. Ports’ council-owners have a wider community interest so may be willing to recognise the wider economic benefits of port activities. Finally, given long asset lives, port investment is predicated on judgements regarding long term forecasts and not immediate returns.
In general, New Zealand ports are more disciplined, efficient and sound businesses in 2016. We observe that trade volumes, being the barometer of a port’s top-line performance, have remained remarkably steady over time, supporting profitability and some record results.
The New Zealand ports and freight yearbook is a concise snapshot of selected macroeconomic and domestic drivers of New Zealand port activity and the freight task. It is intended that this publication will serve as a reference point for stakeholders and be updated on an annual basis. As a new initiative, we welcome your feedback in relation to content and presentation format, and look forward to future discussion and engagement.
New Zealand ports and freight yearbook 2016 1
Glossary
Ports of Auckland (AKL)
Northport (NTH)
Port Taranaki (NPL)
Port of Tauranga (TRG)
Eastland Port (EPL)
Port of Napier (NPE)
CentrePort (WLG)
Lyttelton Port of Christchurch (LYT)
Port Otago (POE)
South Port (BLU)
PrimePort Timaru (TIU)
PortMarlborough(MLB)
Port Nelson (NSN)
CAGR Compound Annual Growth Rate
CNCo The China Navigation Co. Pte Ltd.
EBIT Earnings Before Income and Tax
EU European Union
FIGS Freight Information Gathering System
GDP Gross Domestic Product
GFC Global Financial Crisis
ITS International Trade Statistics
NFDS National Freight Demand Study
NPAT Net Profit after Tax
NZIER NZ Institute of Economic Research Inc
NZTA NZ Transport Agency
OCR Official Cash Rate
OECD Organisation for Economic Co-operation and Development
RBNZ Reserve Bank of New Zealand
ROA Return on Asset
ROE Return on Equity
TEU Twenty-Foot Equivalent Unit
WTO World Trade Organisation
22
New Zealand ports and freight yearbook 2016 3
The New Zealand ports and freight yearbook presents a concise snapshot of selected macroeconomic and domestic drivers of New Zealand port activity and the freight task.
Global economyThe World Bank Global Outlook report (January 2016) entitled “Disappointments, Risks and Spillovers” opens with the statement:
“Global growth again fell short of expectations in 2015, slowing to 2.4 percent from 2.6 percent in 2014. The disappointing performance was mainly due to a continued deceleration of economic activity in emerging and developing economies amid weakening commodity prices, global trade, and capital flows. Going forward, global growth is projected to edge up, but at a slower pace than envisioned in the June 2015 forecast, reaching 2.9 percent in 2016 and 3.1 percent in 2017-18. The forecast is subject to substantial downside risks, including a sharper-than-expected slowdown in major emerging and developing economies or financial market turmoil arising from a sudden increase in borrowing costs that could combine with deteriorating fundamentals and lingering vulnerabilities in some countries.”
The World Bank, Organisation for Economic Co-operation and Development (OECD), and indeed most economists, have been progressively downgrading economic growth forecasts for some time now as growth following the GFC has repeatedly disappointed and as new risks have emerged. Despite record low cost of funds, business and consumer confidence is generally weaker, softening demand and investment intentions, while supply remains strong, undermining prices, particularly for commodities. Geopolitical risks are also a factor (such as Syria, ISIS, Russia, and North Korea).
The dramatic decline in energy prices, while an economic stimulus to oil importing countries, has served to highlight wider risks. Combined with market illiquidity, the rise in the government debt levels and asset price bubbles, there are growing concerns of credit defaults. The EU slowdown continues to worry, while strident far-right political parties gain ground. Financial market turmoil, such as seen recently in global equity markets, is considered the biggest risk to a recovery.
The economic slowdown in China has increased uncertainty and the risk of a hard landing. China recently reported disappointing trade figures with exports down 11.2% and imports down 18.8% in January (the seventh and fifteenth consecutive monthly declines respectively). China’s capital outflows are also of concern, with authorities there expected to step in with potentially global repercussions.
Globally, central bank economic policies have become increasingly unconventional and the distinction between monetary and fiscal policy is increasingly blurred. We are now familiar with acronyms and terms unknown a decade ago, such as QE (quantitative easing), ZIRP (zero-interest-rate policy), and CE (credit easing). All are now widely employed by central banks, resulting in their balance sheets taking on debt, underwriting questionable assets or debasing their currencies. While the consensus remains for steady growth and eventual recovery, the concern is the lack of resilience should adverse events occur.
The next page presents selected trends affecting international transportation sub-sectors. It has been reproduced from a 2015 Deloitte global report entitled “Rethinking profitable growth in the transportation industry – when efficiency is no longer enough.” The report considers the macroeconomic conditions as an impetus for driving operating model transformation and profitable growth in the transportation industry. As transportation industry players face these challenges, they need to re-think growth strategies, develop necessary contingency plans and invest in capabilities to drive profitable growth.
4
Global insights: From Deloitte GlobalGlobal trends have a unique impact on each transportation sub-sector. The Deloitte report identifies three of the challenges that the transportation sector faces in the marketplace and suggests these challenges underpin the need for change to allow efficiency improvements.
1. Slow recovering demand 2. Sophisticated consumers 3. Volatile external forces
TRA
NSP
ORT
ATI
ON
SU
B-S
ECTO
R
AIRLINE CARGO • World air cargo traffic has grown at only 2.6% over the last 10 years and future growth will be tightly tied to the global recovery
• Proliferation of online shopping has driven demand for faster shipping which is presenting complex capability challenges for suppliers
• Managing ongoing volatility will remain a challenge, despite the recent drop in oil prices
• The increase in extreme heat events could increase the number of cancelled flights and decrease payload capacity
TRUCKING/LOGISTICS
• Low barriers to entry mixed with a positive demand outlook may increase participation and competition in the segment as the economy strengthens
• The rise of omni-channel, mass customisation, and same-day delivery may require trucking suppliers to develop new capabilities – especially to win the last mile
• The rapidly changing energy landscape may erode the value of fuel-efficient fleet investments
• The increase in heavy rain and flooding events could increase unexpected delays
RAIL • As global macroeconomic trends recover, rail suppliers may face added competition from other shipping modes as spending shifts from low cost solutions, like rail, to premium air and truck solutions
• As customers become increasingly reliant on real-time information, rail will need to continue to make investments in customer service capabilities
• The recent drop in fuel prices could boost margins in the short term, but may dampen the strong growth seen in oil transportation volumes
• Increased rainfall and flooding boosts track maintenance costs and causes shipping delays
MARITIME • Less than expected global demand has led to an oversupply of ships and fleet under-utilisation
• Shipping freight rates continue to fall as Europe and Japan’s economies falter
• As with rail, customers will continue to demand real-time information necessitating customer service investments
• Customers switched to maritime shipping during the recession to save on cost, but if fuel prices remain low maritime shipping’s price advantage could erode
• While sea shipping lanes will be open longer due to warmer temperatures, the levels of some fresh water passages are projected to drop, decreasing cargo capacity
New Zealand ports and freight yearbook 2016 5
New Zealand economyNew Zealand has weathered the post GFC world better than most. It hosts a stable democracy, attains high educational standards, offers an enviable standard of living with good social accord and, with exports accounting for about 30% of Gross Domestic Product (GDP), operates one of the world’s most free-market based economies. Its fertile soils and temperate climate provide ideal conditions for its strong agricultural sector while its isolation distances it from the worst geopolitical pressures.
Economic management is sound. The Reserve Bank of New Zealand (RBNZ) independently manages monetary policy and maintains a low-inflation environment, while the tax structure is simple and effective. The World Bank ranked New Zealand as the world’s second easiest country to do business in generally.
Like all economies, New Zealand experienced a slow-down following the GFC in September 2008 with business and consumer confidence declining. However, with strong Government accounts and a well-capitalised banking system the economy pulled out of recession faster than most other developed countries spurred by strong demand and prices for key export commodities. This prompted Hong Kong and Shanghai Banking Corporation Limited (HSBC) to label New Zealand the “rock star economy” in January 2014, and in 2015 the OECD commented that “strong fiscal monetary policy frameworks and a healthy financial sector have yielded macroeconomic stability, underpinning growth … business investment is robust and households and firms are optimistic.”
The RBNZ recently observed that global economic growth is below average and inflation is low with weaker growth in Australia, the European Union (EU) and emerging economies, particularly in China despite highly stimulatory monetary conditions. This has weakened New Zealand’s terms of trade while strong net immigration has contributed to increased unemployment. While economic growth is expected to resume later in 2016, the RBNZ now sees a number of uncertainties and risks to this outlook, particularly around dairy and the current drought conditions, prompting a reversal in its tightening bias and a reduction in the Official Cash Rate (OCR) to 2.25% (March 2016).
The New Zealand Institute of Economic Research (NZIER) Consensus Forecasts (December 2015) shows pared back growth expectations to below 3% out to 2019, driven by softer business investment, despite continued solid expectations for housing construction.
Source: Reserve Bank of New Zealand
Source: NZIER
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
Jan
2014
Mar
201
4
May
201
4
Jul 2
014
Sep
2014
Nov
201
4
Jan
2015
Mar
201
5
May
201
5
Jul 2
015
Sep
2015
Nov
201
5
Jan
2016
Mar
201
6
%
Official Cash Rate (OCR)
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Real GDP Growth
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
12Q1 12Q3 13Q1 13Q3 14Q1 14Q3 15Q1 15Q3
Shipping Capacity – TEU
500-999 1000-2499 2500-2999 3000-3999 4000-4999 5000+
0%
10%
20%
30%
40%
50%
60%
2012 2012 2013 2013 2014 2014 2015
Ships over 4000 TEU
6
With exports accounting for about 30% of Gross Domestic Product (GDP), New Zealand operates one of the world’s most free-market based economies
New Zealand ports and freight yearbook 2016 7
Industry focus 2015/16Policy focus still on transport
Transport continues to be a major focus of government policy, with infrastructure investment being a core economic stimulus tool. The 2015/16 budget allocated an additional $248.9 million for key transport projects over the following four years, bringing total spending on transport in 2015/16 to $4.15 billion, including $3.9 billion from the National Land Transport Fund (derived from Road User Charges, Motor Vehicle Registration Fees and Fuel Excise Duties).
In 2010, KiwiRail was allocated $4.7 billion for a 10-year Turnaround Plan (which included the Auckland and Wellington metro rail upgrades). Support continues, with KiwiRail receiving an extra $210 million in the 2015/16 budget, and the government now backing the Auckland City Rail Link.
Coastal shipping, with apparent capacity and potential, remains in a policy vacuum with central government having no direct stake in ports or shipping.
The Ministry of Transport has invested in building quality databases such as the Freight Information Gathering System (FIGS), National Freight Demand Study (NFDS), and wider New Zealand Transport Agency (NZTA) statistics and Productivity Commission reports. These provide powerful new insights and allow for more informed decision making.
Global trade
Seven years on from the GFC, global uncertainty, volatile growth rates and deflationary fears still weigh on confidence. While a full analysis is beyond the scope of this report, we can observe that consensus economic forecasts for New Zealand and the world continue to be wound back. Business and consumer confidence remains fragile, while central bank stimulus capacity is all but exhausted. Increasingly, commentary discusses the vulnerability of financial institutions.
The relationship between trade and economic performance is well established. Historically, the value of global trade has grown at approximately twice global GDP (World Trade Organisation International Trade Statistics (WTO ITS) data 1995-2006 shows the ratio to be 1.8x). Ignoring the volatility in the immediate aftermath of the GFC, trade growth has since fallen to be in line with GDP (1.1x for 2012-2014). For New Zealand, pre GFC trade growth of 1.5x GDP (RBNZ: 1990-2006) has since fallen 0.1x (RBNZ, 2012-2015). While the economics behind our key export commodities such as dairy and logs have been affected by falling prices (oversupply set against weaker demand), ports will benefit from the continued (albeit reduced) volume growth and supply commitments.
-
5
10
15
20
25
30
35
40
45
NTH AKL WAI BOP GIS HKB TAR MAN WEL TNM WST CAN OTG STH
Mill
ion T
onnes
Intra Regional Freight Flows Modal Share
-
2
4
6
8
10
12
14
NTH AKL WAI BOP GIS HKB TAR MAN WEL TNM WST CAN OTG STH
Mill
ion T
onnes
Inter Regional Freight Flows Modal Share
Road Rail Coastal
Road Rail Coastal
0
10,000
20,000
30,000
40,000
50,000
60,000
12Q1 12Q3 13Q1 13Q3 14Q1 14Q3 15Q1 15Q3
Coastal Volumes
International ship - domestic International ship - export tranship
International ship - import tranship NZ ship - domestic
NZ ship - export tranship NZ ship - import tranship
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
1995
-00
2000
-05
2005
-10
2010
-14
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
WTO Trade Growth
Exports GDP
Source: WTO ITS 2015Source: NFDS 2014, MoT FIGS
Source: NFDS 2014, MoT FIGS
8
International shipping
As a trading nation where 99.5% of imports and exports move by sea, New Zealand’s reliance on shipping is apparent. In a perfect world, it would have options for reasonably priced shipping which provides an acceptable level of service to its trading markets. And currently shippers have that choice. So why shouldn’t they be celebrating? Simply, the shipping industry remains in a deep self-imposed turmoil and is unsustainable.
Overcapacity
In a drive to improve fleet efficiency, and spurred by strong pre-GFC trade growth, shipping lines commenced an unprecedented shipbuilding drive towards bulk and container ships. Even prior to the GFC new ship capacity was far exceeding trade growth and post GFC the overcapacity became chronic. Remarkably that exuberant drive has continued. Global containership capacity hit a record 19.94 million twenty-foot equivalent unit (TEU) by the end of 2015, while vessel scrapping and other deletions removed only 0.35 million TEU. As a consequence, excess containership capacity hit a record high, up from 0.23 million TEU to 1.36 million TEU over the year, to 331 containerships which now lie idle. Belatedly, shipbuilding is slowing with forecast growth in 2016 of 4.6% the lowest ever recorded, and below the average annual growth rate recorded since 1990 of 10.3% (Compound Annual Growth Rate (CAGR)). We note that 4.6% is still almost twice the forecast rate of trade growth and the current shipbuilding order book is equivalent to 19% of current global capacity.
Larger Ships
The economics of larger ships appear compelling with lower unit slot costs, higher transit speeds and lower emissions. Internationally, we have seen deliveries of containerships in excess of 19000 TEU (400m+ in length), with orders for ships over 21000 TEU. Such ships raise significant challenges for port infrastructure, requiring larger port transfers to realise potential savings (increasing peak capacity requirements while service frequency may fall). New Zealand currently receives ships of over 5000 TEU, the size of the largest ship ever built in 1995, so faces these benefits and challenges.
New larger ships are cascading down onto secondary routes, including to New Zealand where the average ship size is up from 2350 TEU to 2750 TEU since 2012. Notably however, ships exceeding 4000 TEU now account for 40% of the visiting fleet capacity, up from 3% in 2012.
Source: FIGS
Source: FIGS
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00 Ja
n 20
14
Mar
201
4
May
201
4
Jul 2
014
Sep
2014
Nov
201
4
Jan
2015
Mar
201
5
May
201
5
Jul 2
015
Sep
2015
Nov
201
5
Jan
2016
Mar
201
6
%
Official Cash Rate (OCR)
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018
Real GDP Growth
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
12Q1 12Q3 13Q1 13Q3 14Q1 14Q3 15Q1 15Q3
Shipping Capacity – TEU
500-999 1000-2499 2500-2999 3000-3999 4000-4999 5000+
0%
10%
20%
30%
40%
50%
60%
2012 2012 2013 2013 2014 2014 2015
Ships over 4000 TEU
New Zealand ports and freight yearbook 2016 9
Fuel costs
Crude oil prices rose dramatically pre-GFC, with shipping fuel (bunker) costs rising to over half of ship operating costs. After years of increasing ship transit speeds (some containerships reaching 30 knots) slow steaming was introduced where transit speeds fell to as low as 10 knots. Originally intended to absorb excess shipping capacity, slow steaming also resulted in dramatic fuel savings. Illustrative of this, fuel consumption can be reduced by 59% via reducing a cargo ship speed from 27 knots to 18 knots, potentially saving millions of dollars per voyage. However, from a shipper’s perspective this results in longer transit times and a shorter window for shelf life for time and temperature sensitive goods.
While oil prices have recently slumped to levels last seen in 2002 it is unlikely container shipping lines will abandon slow steaming any time soon. To do so would immediately impose higher operating costs, would require major reconfiguration of scheduled services, and there is no certainty fuel prices will remain low. Higher transit speeds would also release slot capacity and so exacerbate excess capacity already at anchor.
Source: Thomson Reuters
Source: S&P CapitalIQ, Deloitte Analysis
Profitability
Excess capacity in a weakening post GFC market has seen container slot prices slump and shipping lines accumulate billions in losses. While post GFC losses were widespread in 2009, some container shipping companies have since returned to profitability. Maersk, the world’s largest container line, benefits from its scale but also because container shipping is aggregated within diverse businesses such as ports, logistics, oil and gas and transport industries. Most lines, having benefitted from a boost in 2010, have since lapsed into losses which persist today. Only 7 of the top 14 container lines made a profit in the third quarter of 2015, with the average margin (profit/revenue) falling to -1.8%.
Alliances introduced post GFC to increase ship utilisation (and reducing differentiation) are slowly being unwound as shipping lines seek again to differentiate or are reforming as a result of corporate actions. Differentiation would typically be through the chosen mix of ports called within a schedule, or the line’s wider network. Others seek security in long term contracts, such as Maersk with Kotahi. Most however compete primarily on price, with shippers unwilling to pay a premium for service differentiation.
With shipping companies having already aggressively reduced costs, and with overcapacity weighing on prices, shipping lines currently enjoy no buffer against forecast anaemic trade growth. As foreshadowed by Maersk’s CEO, there are more hard times ahead. While low prices may seem like a silver lining for our shippers, if vital supply chains are not financially sustainable, this represents a real problem for New Zealand.
0
2
4
6
8
10
12
14
16
18
20
NTH AKL TRG NPL EST NPE WLG NSN MLB LYT TIU POE BLU
Port Trade Composition million tonnes
Containers Bulk Liquids Forestry Coal Other Bulk
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
AKL TRG NPL NPE WLG NSN LTY TIU POE BLU
Port Container Composition TEU
Tranship + Other Domestic Imports Exports
0
20
40
60
80
100
120
140
160
2000 2002 2004 2006 2008 2010 2012 2014 2016
Crude Oil Price US$/bbl
143
107
40
34 26
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
NZ Container Throughput million TEU
2013 2014 2015
0.04
0.17
0.07
0.37
0.090.11
0.26
0.85
0.97
0.00
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
Mae
rsk
CM
A C
GM
Ever
gree
n
Hap
ag-L
loyd
CSC
L
Han
jin
OO
CL
Net Profit After Tax Margin
2008 2009 2010 2011 2012 2013 2014 Last 12 months
-
10,000
20,000
30,000
40,000
AKL TRG NPL NPE WLG NSN LYT TIU POE BLU
Transhipment Volumes – TEU Quarterly Mar-12 to Sep-15
90
100
110
120
130
140
2012 2013 2014
TEU Growth
Export Import Domestic Transhipment/re-export
0%
50%
100%
Import Containers – % Empty
0%
10%
20%
30%
40%
2012 2013 2014
Export Containers – % Empty
20ft 20ft reefer 40ft 40ft reefer
2012 2013 2014
20ft 20ft reefer 40ft 40ft reefer
76%
40%
20%
32%
14%
6%
2%
6%
10
Ship utilisation
We observe from FIGS data that ship utilisation (a measure of shipping line efficiency) has ranged between 31%-38% since 2012, and was 35% (1.77 million TEU transferred at multiple ports from ships with capacity of 2.55 million TEU) in 2015 (Oct14-Sep15). In 2015, 934 ships visited 3,375 ports (average 3.6 ports per visit) in New Zealand. The size of port exchanges must increase to warrant use of larger ships, although we observe that since 2013 the size of exchange has fallen from a New Zealand average of 965 TEU to 820 TEU, suggesting ship capacity is being introduced faster than the growth in trade. This supports the observations of strong competition on our coast and pressure on pricing.
The following table presents international ship capacity and average TEU exchanges for the period October 2014 to September 2015 by port.
International ship capacity and average TEU exchange Oct 2014–Sep 2015
Ship size AKL TRG NPE WLG NSN LYT TIU POE BLU
Unknown TEU - - - - - 15 - - -
< 500 TEU 36 189 50 - 44 - - - -
500–999 TEU 681 650 1,076 - 333 1,466 - - -
1000–1499 TEU 463 452 252 - 34 - - - -
1500–1999 TEU 910 650 207 498 474 683 - - -
2000–2499 TEU 1,082 834 214 368 377 483 167 265 659
2500–2999 TEU 1,179 1,029 518 551 504 608 886 279 626
3000–3499 TEU 1,054 980 783 455 546 514 564 833 707
3500–3999 TEU 1,231 1,378 827 541 456 949 470 829 765
4000–4499 TEU 2,133 1,409 791 622 - 1,056 258 231 752
4500–4999 TEU 2,274 2,684 620 659 - 1,414 - 1,377 -
5000–5999 TEU 1,925 2,958 358 - - 1,780 - 1,547 -
Source: FIGS
New Zealand ports and freight yearbook 2016 11
Coastal shipping
Coastal shipping, having played a vital role early in New Zealand’s history, now plays a niche role, with road and rail doing the heavy lifting. Core coastal trades are in discrete markets – petroleum products, cement and inter-island ferries and where growth mirrors wider economic activity. For general goods, and especially containers, coastal shipping competes more directly with road and rail.
The New Zealand Shipping Federation recently published a report “Full Steam Ahead” to stimulate a wider discussion on national freight options. The report presents the case for coastal shipping to be considered in wider infrastructure and policy decisions. It calls for “joined up thinking,” where all transport issues and policies are considered by all agencies in a truly multi-modal context.
While coastal shipping is unable to match the flexibility, frequency or speed of delivery by either road or rail, it does offer many advantages, such as avoided capex (building and maintaining our roads, whereas shipping capacity can be readily added with minimal investment), environmental benefits of shipping (with New Zealand joining 194 other countries in Paris agreeing to mitigate global warming) and reduced congestion on our roads.
In addition, domestic operators are disadvantaged relative to international ships which, apart from scale and marginal pricing opportunities, attract some relief from tax, GST, emissions and labour laws. Accordingly, international ships carry the lion’s share of coastal traffic, and more so since Pacifica retired a vessel in November 2015.
The China Navigation Company’s (CNCo) acquisition of Pacifica Shipping signalled the potential for a more prosperous era for coastal container shipping. Unfortunately for Pacifica, the market has turned distinctly hostile. International shipping lines suffering from low prices have scrambled for any non-Kotahi Maersk containers, marginally pricing on Pacifica’s coastal market (transhipment and domestic).
Of the 2.75 million TEU containers handled by New Zealand ports in 2015, 0.86 million TEU were coastal moves (domestic and transhipment), with the balance being import or export flows (or on-port shifts and restows). Since New Zealand removed cabotage (laws which restrict foreign ships carrying domestic cargos) in 1994, domestic shipping has competed more directly with international shipping. Pacifica Shipping has been the key coastal operator since 1985, with a fleet of up to 4 RORO (roll-on/roll-off) ships. Since 2000, Pacifica changed to operate container ships, initially geared but ungeared from 2008 onwards. This committed them to using container terminals rather than general wharves, bringing them into direct competition with international containerships. Pacifica’s strategy was to boost coastal traffic and to provide feeder services to international lines.
FIGS data shows that coastal volumes increased, from 45,000 TEU/quarter in 2012 to 60,000 TEU/quarter in 2015, with domestic operators’ (Pacifica’s) share rising from 20% to almost 30%, albeit with a loss of market share in early 2015. Pacifica’s release of Spirit of Endurance in late 2015 (reducing its fleet to a single ship, Spirit of Canterbury) is expected to see its market share drop further.
While CNCo has the funding, ambition and patience to rebuild as a large coastal player, this will depend on when we believe global shipping might behave more rationally and when more sustainable pricing will emerge.
Hubbing
Shippers understandably seek to optimise their supply chains. Larger ships that can bring efficiencies to blue-water legs have arrived, with 40% of New Zealand containerised imports and exports now carried on ships larger than 4000 TEU. However, these blue-water gains may be at least partially offset by higher costs elsewhere in the supply chain. Further, with supply chains becoming longer and more complex, service levels may reduce (lower service frequency to achieve larger transfers, longer overall transit times given need to hub/reposition cargo, compounded by slow steaming).
Source: FIGS
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5
10
15
20
25
30
35
40
45
NTH AKL WAI BOP GIS HKB TAR MAN WEL TNM WST CAN OTG STH
Mill
ion T
onnes
Intra Regional Freight Flows Modal Share
-
2
4
6
8
10
12
14
NTH AKL WAI BOP GIS HKB TAR MAN WEL TNM WST CAN OTG STH
Mill
ion T
onnes
Inter Regional Freight Flows Modal Share
Road Rail Coastal
Road Rail Coastal
0
10,000
20,000
30,000
40,000
50,000
60,000
12Q1 12Q3 13Q1 13Q3 14Q1 14Q3 15Q1 15Q3
Coastal Volumes
International ship - domestic International ship - export tranship
International ship - import tranship NZ ship - domestic
NZ ship - export tranship NZ ship - import tranship
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
1995
-00
2000
-05
2005
-10
2010
-14
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
WTO Trade Growth
Exports GDP
Source: WTO ITS 2015Source: NFDS 2014, MoT FIGS
Source: NFDS 2014, MoT FIGS
12
Source: FIGS
Source: FIGS
Transhipment flows in New Zealand were building steadily, with Tauranga emerging as the key export hub (with Port of Napier and Nelson Port the key feeder ports) and Auckland the import hub. Since 2014, we observe a clear reversal where transhipment volumes have dropped (while coastal volumes have accelerated). It appears that international shipping lines are now competing on price and by offering direct services. Tauranga, which ranks #1 for transhipments, is the only port reporting recent growth. We also note that Timaru exports thought to be “captive” are not yet being hubbed via Tauranga. Transhipments via Auckland (an import hub) have eased with tranship volumes through most other ports, acting as feeder ports (source or destination), down.
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
Mae
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CM
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GM
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CSC
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Net Profit After Tax Margin
2008 2009 2010 2011 2012 2013 2014 Last 12 months
-
10,000
20,000
30,000
40,000
AKL TRG NPL NPE WLG NSN LYT TIU POE BLU
Transhipment Volumes – TEU Quarterly Mar-12 to Sep-15
90
100
110
120
130
140
2012 2013 2014
TEU Growth
Export Import Domestic Transhipment/re-export
0%
50%
100%
Import Containers – % Empty
0%
10%
20%
30%
40%
2012 2013 2014
Export Containers – % Empty
20ft 20ft reefer 40ft 40ft reefer
2012 2013 2014
20ft 20ft reefer 40ft 40ft reefer
76%
40%
20%
32%
14%
6%
2%
6%
New Zealand ports and freight yearbook 2016 13
Inland Ports
Supply chains have become more complex, with freight diverted from direct source-destination routes through intermediate freight hubs, usually developed by freight/logistics companies. Ports have increasingly developed such sites, termed off-port or inland ports, although the function of these sites can vary widely. Many are intermodal (a transfer between different modes (e.g. road and rail)), and may provide functions ranging from vanning (loading) and devanning (unloading), customs clearance (bonded), offsite storage (to relieve port congestion), empty container storage, maintenance (of equipment and containers) and logistics services. These sites may also form a component of a wider freight park (cargo generation or destination, and services).
Inland port development initiatives include:
• Port of Tauranga - an early mover with MetroPort (1999) and more recently Rolleston (2014).
• Lyttelton - City Depot/Woolston (2006) and Midland (Rolleston) (2016).
• Auckland - Wiri (2010), Longburn (2014, with Port of Napier), Mt Maunganui (2015), Horotiu (2016)
• Port Otago - Sawyers Bay (2013), plus Southgate
• CentrePort - Seaview and Wanganui (2014), plus CentreRail
• South Port – a site in Invercargill (2014).
• Fonterra has developed its own depots at Te Rapa (2005) and Mosgiel (2008), hubbing through Kotahi/Maersk
• An open access hub is proposed at Ruakura (Hamilton, pending).
Logistics
Ports are an indispensable part of the journey for over 99.5% of our merchandise import-export trade, but they cannot control freight flows. Those decisions are made by shippers and shipping lines which actively exercise their choices (although practically their options are limited). Ports do compete, differentiating on location, infrastructure capability, performance and price. More recently, ports have sought greater insight and influence on trade flows by investing upstream into logistics providers, and even transport companies. Tauranga was an early mover with C3 (log stevedoring, now via Quality Marshalling), MetroPort and Tappers, while Auckland has developed its Nexus joint venture. Several have initiatives with KiwiRail.
Longburn (AKL & NPE)
Whanganui (WLG)
Sawyer’s Bay (POE)
Mosgiel (Fonterra)
South Port (BLU)
Rolleston (TRG) City Depot (LYT)
Midland (LYT)
Wiri (AKL)
MetroPort (TRG)
Mt Maunganui (AKL)Te Rapa (Fonterra)Horotiu (AKL)
14
0
2
4
6
0
20
40
60
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New Zealand Freight Generated By Commodity
million tonnes billion tonne-kilometres
Full Container Composition TEU
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
AKL TRG NPL NPE WLG NSN LTY TIU POE BLU
Tranship + Other Domestic Imports Exports
Empty Container Composition TEU
-
50,000
100,000
150,000
200,000
250,000
AKL TRG NPL NPE WLG NSN LTY TIU POE BLU
Tranship + Other Domestic Imports Exports
Empty containers
Moving empties reflects supply and demand mismatches (seasonal and geographic).
Of the 2.75 million TEU handled by NZ ports, 0.77 million TEU (28%) were recorded as empties:
• Full import containers once devanned need to be relocated to an exporter
• Specialist containers may not have a suitable backhaul e.g. where the cost of shipping an empty food-grade reefer may be lower than cost of cleaning/repairing/certifying if used for non-food goods
• There are strong seasonal and locational demand cycles creating a mismatch for each container type (20’, 40‘, dry, reefer)
• Each shipping line (container owner) operates largely independently, with unique seasonal, geographic and customer requirements
Some quite distinct patterns emerge in empty container movements:
• For dry containers, 94% imported full but many are exported empty – 20ft – imports full, exports 32% empty – 40ft – imports 80% full, exports 14% empty
• For reefer containers, exported full but many are imported empty – 20ft – imports 76% empty, exports 2% empty – 40ft – imports 40% empty, exports 6% empty – Strong seasonal patterns in 40ft reefers
• 65% of domestic coastal moves are of empty containers
Patterns by port
Ports play distinct roles for full containers. Ports of Auckland (AKL) dominates import flows into New Zealand with 56% share, followed by Port of Tauranga (TRG) and Lyttelton Port of Christchurch (LYT). For exports, TRG dominates with 40% share, followed by AKL, then Port of Napier (NPE) and LYT. Transhipments are principally exports flowing north (primarily to TRG).
Source: FIGS
Source: FIGS
Source: FIGS
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
Mae
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CSC
L
Han
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OO
CL
Net Profit After Tax Margin
2008 2009 2010 2011 2012 2013 2014 Last 12 months
-
10,000
20,000
30,000
40,000
AKL TRG NPL NPE WLG NSN LYT TIU POE BLU
Transhipment Volumes – TEU Quarterly Mar-12 to Sep-15
90
100
110
120
130
140
2012 2013 2014
TEU Growth
Export Import Domestic Transhipment/re-export
0%
50%
100%
Import Containers – % Empty
0%
10%
20%
30%
40%
2012 2013 2014
Export Containers – % Empty
20ft 20ft reefer 40ft 40ft reefer
2012 2013 2014
20ft 20ft reefer 40ft 40ft reefer
76%
40%
20%
32%
14%
6%
2%
6%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
Mae
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CM
A C
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Ever
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Hap
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CSC
L
Han
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OO
CL
Net Profit After Tax Margin
2008 2009 2010 2011 2012 2013 2014 Last 12 months
-
10,000
20,000
30,000
40,000
AKL TRG NPL NPE WLG NSN LYT TIU POE BLU
Transhipment Volumes – TEU Quarterly Mar-12 to Sep-15
90
100
110
120
130
140
2012 2013 2014
TEU Growth
Export Import Domestic Transhipment/re-export
0%
50%
100%
Import Containers – % Empty
0%
10%
20%
30%
40%
2012 2013 2014
Export Containers – % Empty
20ft 20ft reefer 40ft 40ft reefer
2012 2013 2014
20ft 20ft reefer 40ft 40ft reefer
76%
40%
20%
32%
14%
6%
2%
6%
The pattern for empties is more complex. AKL exports most empties (largely dry), while TRG, NPE and Port Otago (POE), as export ports, need to import empties. 42% of all empty containers handled are domestic while 65% of domestic flows are empties. AKL handles 30% of empty domestic movements (devanned dry containers heading to export ports), while TRG, NPE, LYT and POE receive them.
New Zealand ports and freight yearbook 2016 15
0
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4
6
0
20
40
60
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Agr
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New Zealand Freight Generated By Commodity
million tonnes billion tonne-kilometres
Full Container Composition TEU
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
AKL TRG NPL NPE WLG NSN LTY TIU POE BLU
Tranship + Other Domestic Imports Exports
Empty Container Composition TEU
-
50,000
100,000
150,000
200,000
250,000
AKL TRG NPL NPE WLG NSN LTY TIU POE BLU
Tranship + Other Domestic Imports Exports
New Zealand freight taskThis section is principally derived from Deloitte’s National Freight Demand (NFDS) Study, published in 2014 and updating the inaugural report from 2008. The Ministry of Transport proposes to update the NFDS every 3 years.
Each year, 236 million tonnes of freight are moved within New Zealand, some 50 tonnes per person. This task can be classified into four broad groupings: primary produce, energy, construction materials, and manufactured and retail goods.
The primary sector is New Zealand’s key generator of domestic freight, much destined for export. The flows are from source (farm gate or plantation forest) either direct to ports for export (such as logs) or more usually via intermediate processing industries (dairy factories) for both domestic consumption and/or export. Favourable export conditions and a buoyant construction sector have supported the strength in forestry, while dairy has enjoyed rapid expansion (much enabled by irrigation). Dairy alone exceeds the tonnage of all other agricultural commodities: livestock, meat, wool, horticulture, grains, and fish.
Source: NFDS 2014
Petroleum and coal freight are concentrated on a few key regions where the resources are located and extracted, coal from West Coast and Waikato, and petroleum from Taranaki or Northland where it is imported and refined.
Key construction materials, aggregate and cement, are also produced in high volumes, although generally close to domestic markets given their bulk and relatively low unit value.
Manufactured and retail goods, whether domestically made or imported, are usually smaller and of greater unit value, and are observed to be transported greater distances.
16
Regional freight generation
Clear patterns are evident in domestic freight flows. Primary producing areas generate flows to export ports, typically via processing facilities. Population is a major driver of both consumption and manufacturing activity.
The Golden Triangle (Auckland, Waikato, Bay of Plenty) combines both population and primary industries (forestry and dairy) to account for 45% of all freight tonnage produced. Canterbury is the dominant freight generator in the South Island producing 15% of the national freight task.
Manufacturing and retail freight tonnage correlate strongly with population, notably in Auckland and Canterbury, which host manufacturing hubs, large scale distribution centres, and receive consumer goods through their ports.
The primary sector locates in regions offering favourable topography, climate, and soil. Waikato, Taranaki, Manawatu, and Southland have proven well-suited to dairy production, as well as Canterbury if irrigation is available, with dairy accounting for over 20% of total freight generated for these regions. This is similar for forestry, where warm climate and lower-value land have attracted substantial plantings in Northland, Waikato, Bay of Plenty, Gisborne, Hawkes Bay, and Tasman/Nelson/Marlborough. Forestry volumes account for over 35% of freight in these regions (excepting Waikato at 16% and Northland at 26%).
Crude oil flows are either direct export (from Taranaki) or direct import (to the refinery in Northland). Domestic transport of petroleum products is primarily from the Northland refinery to coastal distribution, with a rising direct import share, and then by truck to the nation’s service stations. West Coast coal production is principally for export via Lyttelton, while Waikato coal serves a domestic market in the upper North Island. The outlook for coal is overshadowed by low prices and its high environmental footprint. Cement is manufactured at plants in Northland and West Coast for distribution by coastal ships and then road and rail. The West Coast plant is being superseded by direct import. Southland hosts the Tiwai Point Aluminium Smelter, which while generating largely direct import export flows, accounts for almost 10% of the regions total freight flows.
New Zealand Regions
Auckland (AKL)
Waikato (WAI)
Taranaki (TAR)
Manawatu (MAN)
West Coast (WST)
Canterbury (CAN)
Otago (OTG)
Southland (STH)
Hawke’s Bay (HKB)
Wellington (WLG)
Tasman Nelson Marlborough (TNM)
Gisborne (GIS)
Bay of Plenty (BOP)
Northland (NTH)
New Zealand ports and freight yearbook 2016 17
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
10
20
30
40
50
60
NTH AKL WAI BOP GIS HKB TAR MAN WLG TNM WST CAN OTG STH
Intr
a %
mill
ion t
onnes
Intra vs Inter-Regional Freight Flows
Inter Intra Intra %
0 5 10 15 20 25 30 35 40 45 50
NTH
AKL
WAI
BOP
GIS
HKB
TAR
MAN
WLG
TNM
WST
CAN
OTG
STH
Total Freight Generated million tonnes
Dairy Forestry Other Agri Petroleum Coal Aggregate Cement Manufactured Goods Other Retail Other
0.0 1.0 2.0 3.0 4.0 5.0 6.0
NTH
AKL
WAI
BOP
GIS
HKB
TAR
MAN
WLG
TNM
WST
CAN
OTG
STH
Total Freight Generated billion tonne-kms
Dairy Forestry Other Agriculture Petroleum
Coal Aggregate Cement Manufactured Goods
Other Retail Other
71%
77%77%
81% 85%
71%75%
83%
47%
87% 83% 85%78%
53%
TOTAL FREIGHT GENERATED (MILLION TONNES)
Dairy Forestry Other Agri Petroleum Coal Aggregate Cement Manufctrd
GoodsOther Retail Other Total
NTH 1.29 4.35 0.72 2.73 0.06 1.69 2.45 0.28 0.03 3.28 16.88
AKL 0.73 1.44 1.58 1.40 0.06 5.76 2.76 9.91 11.77 13.98 49.39
WAI 7.08 5.15 2.72 - 1.77 5.70 1.68 1.02 0.24 6.70 32.06
BOP 1.62 9.80 2.20 1.03 - 1.24 1.57 1.26 0.49 5.83 25.04
GIS 0.02 1.87 0.63 - - 0.27 0.06 0.08 - 0.86 3.79
HKB 0.27 3.57 1.85 0.22 - 0.70 0.93 0.54 0.14 2.07 10.29
TAR 2.69 0.26 0.91 0.49 - 0.42 0.67 0.48 0.01 1.69 7.62
MAN 2.19 1.70 1.64 - - 1.09 0.26 0.51 1.35 1.82 10.56
WLG 0.33 0.89 0.41 0.58 - 1.43 0.69 0.96 0.60 2.52 8.41
TNM 0.39 3.34 1.07 0.27 - 1.02 0.56 0.36 0.07 2.24 9.32
WST 0.65 0.43 0.12 - 2.50 0.03 1.43 0.07 0.04 0.27 5.54
CAN 5.12 1.54 3.97 0.93 0.05 5.30 2.94 3.27 3.26 9.01 35.39
OTG 1.24 1.52 1.05 0.28 0.09 1.84 0.86 0.48 0.24 2.44 10.04
STH 2.79 1.40 1.12 0.21 0.52 0.51 1.11 0.21 0.05 3.77 11.69
TOTAL 26.41 37.26 20.01 8.14 5.05 26.99 17.98 19.45 18.31 56.42 236.02
Source: NFDS 2014, MoT FIGS
TOTAL FREIGHT GENERATED (BILLION TONNE-KILOMETERS)
Dairy Forestry Other Agri Petroleum Coal Aggregate Cement Manufctrd
GoodsOther Retail Other Total
NTH 0.11 0.61 0.08 2.42 - 0.07 0.24 0.06 - 0.21 3.80
AKL 0.07 0.41 0.11 0.07 - 0.20 0.04 1.77 1.86 0.67 5.20
WAI 0.50 0.43 0.28 - 0.08 0.30 0.14 0.15 0.03 0.39 2.30
BOP 0.17 1.05 0.23 0.12 - 0.03 0.18 0.24 0.09 0.49 2.60
GIS 0.01 0.27 0.13 - - 0.01 - 0.03 - 0.15 0.60
HKB 0.04 0.50 0.19 0.01 - 0.04 0.10 0.13 0.03 0.17 1.20
TAR 0.29 0.03 0.12 0.06 - 0.01 0.13 0.10 - 0.06 0.80
MAN 0.42 0.24 0.21 - - 0.02 - 0.13 0.20 0.08 1.30
WLG 0.05 0.08 0.07 0.05 - 0.02 0.02 0.30 0.25 0.06 0.90
TNM 0.05 0.41 0.15 0.09 - 0.03 0.02 0.11 0.01 0.23 1.10
WST 0.07 0.08 0.01 - 0.86 - 0.29 0.03 0.01 0.04 1.39
CAN 0.41 0.15 0.45 0.05 - 0.07 0.11 0.99 0.49 0.58 3.30
OTG 0.12 0.27 0.20 0.02 0.01 0.03 0.06 0.18 0.03 0.18 1.10
STH 0.22 0.10 0.20 0.02 0.08 0.01 0.09 0.10 0.02 0.16 1.00
TOTAL 2.53 4.64 2.47 2.91 1.03 0.84 1.43 4.32 3.00 2.47 26.30
Source: NFDS 2014, MoT FIGS
18
Source: NFDS 2014
Regional freight flows
Intra-regional flows
Freight is a cost borne by all cargos and so effort is made to minimise the freight task. Accordingly, intra-regional flows account for 77% of the total domestic freight task. The quantum of intra-regional freight task is driven by regional population and production (primary and manufacturing).
West Coast has the lowest intra-regional share at 47% given the volumes of coal exported via Canterbury, while Manawatu serves as a rail and road hub for the North Island. The smallest intra-regional freight flow (West Coast) is exceeded by the inter-regional flows in only the three Golden Triangle regions of Waikato, Auckland and Bay of Plenty.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
10
20
30
40
50
60
NTH AKL WAI BOP GIS HKB TAR MAN WLG TNM WST CAN OTG STH In
tra
%
mill
ion t
onnes
Intra vs Inter-Regional Freight Flows
Inter Intra Intra %
0 5 10 15 20 25 30 35 40 45 50
NTH
AKL
WAI
BOP
GIS
HKB
TAR
MAN
WLG
TNM
WST
CAN
OTG
STH
Total Freight Generated million tonnes
Dairy Forestry Other Agri Petroleum Coal Aggregate Cement Manufactured Goods Other Retail Other
0.0 1.0 2.0 3.0 4.0 5.0 6.0
NTH
AKL
WAI
BOP
GIS
HKB
TAR
MAN
WLG
TNM
WST
CAN
OTG
STH
Total Freight Generated billion tonne-kms
Dairy Forestry Other Agriculture Petroleum
Coal Aggregate Cement Manufactured Goods
Other Retail Other
71%
77%77%
81% 85%
71%75%
83%
47%
87% 83% 85%78%
53%
New Zealand ports and freight yearbook 2016 19
Inter-Regional Flows
Inter-regional freight flows are typically concentrated on immediately adjacent regions, given the shorter transport distances, and are associated with just a few key trades. The largest inter-regional freight flows occur within the Golden Triangle, which accounts for 49% of the country’s population. Freight flows are varied with major volumes including:
• Dairy: Waikato – Bay of Plenty (0.78 million tonnes).
• Forestry: Auckland – Bay of Plenty (0.77 million tonnes), Waikato – Bay of Plenty (0.94 million tonnes), Bay of Plenty – Auckland (0.77 million tonnes).
• Other Agriculture: Bay of Plenty – Waikato (0.65 million tonnes).
• Coal: Waikato – Auckland (0.78 million tonnes).
• Aggregate: Waikato – Auckland (1.74 million tonnes), Waikato – Bay of Plenty (0.56 million tonnes).
• Manufactured Goods: Auckland – Waikato (0.70 million tonnes), Auckland – Bay of Plenty (1.00 million tonnes).
• Retail: Auckland – Waikato (0.90 million tonnes).
Auckland and Canterbury exhibit sizeable freight flows to a number of regions, representative of their positions as distribution hubs for consumer goods. Manufactured goods and retail goods freight flows comprise 71% of Auckland’s inter-regional flows and 63% for Canterbury.
Inter-regional trade between the North and South Islands totals just 6.2 million tonnes with trade between the North Island and Canterbury accounting for 62% of the total.
Outside of the Golden Triangle, key specialised freight flows between regions include:
• Dairy: Manawatu to Taranaki (1.46 million tonnes), Southland – Otago (0.46 million tonnes).
• Forestry: Hawkes Bay – Bay of Plenty (0.84 million tonnes).
• Petroleum: Northland – NZ (2.51 million tonnes).
• Coal: West Coast – Canterbury (2.35 million tonnes).
• Aggregate: Northland – Auckland (0.64 million tonnes).
• Cement: Northland – Auckland (0.49 million tonnes).
• Retail Goods: Manawatu – Wellington (0.70 million tonnes).
TOTAL FREIGHT FLOWS (000’S TONNES)
Origin/Destination NTH AKL WAI BOP GIS HKB TAR MAN WLG TNM WST CAN OTG STH TOTAL
NTH 11,917 1,960 110 880 - 220 80 10 390 260 - 571 200 200 16,798
AKL 898 38,461 2,392 2,833 140 493 507 1,329 1,231 117 10 1,466 130 29 50,037
WAI 120 3,914 23,768 2,226 20 161 303 122 71 1 - 133 4 15 30,859
BOP 170 1,700 2,026 21,366 120 234 152 293 162 4 0 150 2 0 26,379
GIS - 70 80 150 3,210 160 10 70 10 - - 20 - - 3,780
HKB 20 310 130 1,158 540 7,486 97 698 93 2 0 60 9 1 10,606
TAR 90 246 335 341 10 198 6,071 304 72 10 0 74 23 0 7,774
MAN 10 250 93 215 20 1,130 1,858 5,696 1,346 11 1 67 2 1 10,700
WLG 10 667 72 63 10 122 142 932 6,520 23 0 125 5 1 8,692
TNM 0 276 11 274 - 21 10 27 63 8,031 370 508 33 20 9,644
WST - 112 1 0 - 0 30 0 40 30 2,600 2,819 142 0 5,774
CAN 2 636 38 187 - 54 59 113 109 884 742 31,370 1,388 607 36,190
OTG 0 166 23 78 - 33 5 1 6 32 0 770 8,560 683 10,357
STH 0 63 28 7 - 13 0 1 2 11 10 410 1,201 10,103 11,848
TOTAL 13,238 48,832 29,105 29,779 4,070 10,324 9,324 9,598 10,115 9,418 3,735 38,542 11,698 11,659 239,437
Source: NFDS 2014, MoT FIGS
20
Modal Share
Road is the dominant mode of transport for intra-regional freight flows with market share exceeding 95% in all regions (except Bay of Plenty at 83% given logs are railed to Tauranga for export). Road offers superior service quality (transit time, reliability, service availability, and frequency), and uniquely provides door-to-door capability (so is needed to provide the “final mile” service for rail and shipping). Road services can be requested on demand whereas rail and shipping services operate on schedules with less flexibility. New Zealand’s roading network is also more expansive than the country’s rail and port network, thus road is able to service greater areas. Road furthermore benefits from being the lower cost option for shorter distances travelled transporting intra-regional freight flows.
Modal share competition is more pronounced over the longer distances involved with inter-regional freight flows. Road, nevertheless, remains dominant. Rail and coastal shipping typically offer cost advantages over road as distance increases, as well as greater environmental benefits, and may be better suited to the transportation of long-haul, or repetitive freight tasks.
Configuring supply chains can reflect strategic mode choices. Fonterra utilises rail to transport much of its North Island product from origin (Waikato, Taranaki, Manawatu) to port (Bay of Plenty, Hawkes Bay) for export. Similarly, Solid Energy transports its coal by rail from the West Coast to Canterbury for export. Port of Tauranga has developed a rail link to its Auckland MetroPort facility to capture general freight (manufactured and retail goods, and repositioning empties).
Coastal shipping is favoured by shippers of lower-value bulk goods such as cement from Northland and West Coast, and petroleum from the refinery in Northland. We also observe flows of manufactured and retail goods from Auckland distribution centres by coastal shipping.
Overall road holds a 68% market share (by tonnage) of inter-regional freight flows, with rail accounting for 21% and coastal shipping 11%.
-
5
10
15
20
25
30
35
40
45
NTH AKL WAI BOP GIS HKB TAR MAN WEL TNM WST CAN OTG STH
Mill
ion T
onnes
Intra Regional Freight Flows Modal Share
-
2
4
6
8
10
12
14
NTH AKL WAI BOP GIS HKB TAR MAN WEL TNM WST CAN OTG STH
Mill
ion T
onnes
Inter Regional Freight Flows Modal Share
Road Rail Coastal
Road Rail Coastal
0
10,000
20,000
30,000
40,000
50,000
60,000
12Q1 12Q3 13Q1 13Q3 14Q1 14Q3 15Q1 15Q3
Coastal Volumes
International ship - domestic International ship - export tranship
International ship - import tranship NZ ship - domestic
NZ ship - export tranship NZ ship - import tranship
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
1995
-00
2000
-05
2005
-10
2010
-14
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
WTO Trade Growth
Exports GDP
Source: WTO ITS 2015Source: NFDS 2014, MoT FIGS
Source: NFDS 2014, MoT FIGS
New Zealand ports and freight yearbook 2016 21
COASTAL SHIPPING FREIGHT FLOWS (000’s Tonnes)
Origin/Destination NTH AKL TRG NPE NPL WLG NSN WST LYT TIU POE BLU TOTAL
NTH 590.0 700.0 210.0 70.0 380.0 260.0 - 540.0 - 200.0 190.0 3,140.0
AKL - 21.8 13.3 19.9 45.7 69.9 - 506.2 - 95.2 - 772.0
TRG - 34.4 0.1 - 26.2 4.1 - 140.1 - 1.8 - 206.6
NPE - 69.7 194.8 - - 0.0 - - - - - 264.5
NPL - 40.0 5.8 - - - - 0.1 - - - 45.9
WLG - 0.8 37.4 1.4 - - - 51.2 - 1.4 - 92.1
NSN - 98.1 219.9 0.1 0.1 7.7 - 0.7 - 1.8 - 328.4
WST - 110.0 - - 30.0 40.0 30.0 180.0 - 70.0 - 460.0
LYT - 64.9 174.8 24.7 14.6 15.9 10.7 - - 16.7 - 322.4
TIU - 2.2 7.9 8.3 - - - - 21.0 - - 39.3
POE - 49.1 67.7 32.9 - - - - 25.9 - - 175.6
BLU - 1.3 7.0 0.2 - - - - 4.6 - 10.0 23.1
TOTAL 1,060.5 1,437.0 290.9 134.6 515.6 374.7 - 1,469.8 - 396.9 190.0 5,870.0
Source: NFDS 2014, MoT FIGS
COASTAL SHIPPING CONTAINER FLOWS (TEU)
Origin/Destination NTH AKL TRG NPE NPL WLG NSN WST LYT TIU POE BLU TOTAL
NTH -
AKL 15,461 16,708 2,432 7,482 11,063 70,993 33,455 - 157,594
TRG 3,581 1,603 - 2,726 1,425 12,283 239 - 21,857
NPE 6,525 15,215 - - 4 37 - - - 21,781
NPL 3,475 928 - - 29 55 - - - 4,487
WLG 66 8,644 2,051 - 572 6,116 - 392 20 17,861
NSN 8,034 18,048 50 12 690 129 - 196 - 27,159
WST -
LYT 13,010 19,614 7,790 1,650 2,372 8,005 - 4,374 - 56,815
TIU 191 536 824 - - - 1,376 - - 2,927
POE 4,225 6,195 5,416 - - - 2,293 79 - 18,208
BLU 77 458 78 - - 4 422 60 571 1,670
TOTAL 39,184 85,099 34,520 4,094 13,270 21,102 - 93,704 139 39,227 20 330,359
Source: MoT FIGS
22
ROAD FREIGHT FLOWS (Million Tonnes)
Origin/Destination NTH AKL WAI BOP GIS HKB TAR MAN WLG TNM WST CAN OTG STH TOTAL
NTH 11.85 1.28 0.11 0.15 - 0.01 0.01 0.01 0.01 - - 0.03 - 0.01 13.46
AKL 0.88 38.04 2.37 1.61 0.14 0.47 0.46 1.14 1.05 0.02 0.01 0.57 - 0.02 46.77
WAI 0.12 3.38 23.46 1.46 0.02 0.16 0.30 0.11 0.06 - - 0.10 - 0.01 29.20
BOP 0.17 1.04 1.79 17.81 0.12 0.23 0.12 0.28 0.13 - - - - - 21.65
GIS - 0.07 0.08 0.15 3.21 0.16 0.01 0.07 0.01 - - 0.02 - - 3.78
HKB 0.02 0.23 0.13 0.96 0.54 7.28 0.06 0.63 0.08 - - 0.02 - - 9.95
TAR 0.09 0.17 0.33 0.12 0.01 0.06 6.06 0.30 0.05 0.01 - 0.06 0.01 - 7.26
MAN 0.01 0.22 0.09 0.14 0.02 0.68 1.25 5.65 1.18 0.01 - 0.03 - - 9.29
WLG 0.01 0.63 0.07 0.02 0.01 0.11 0.13 0.84 6.23 0.02 - 0.06 - - 8.12
TNM - 0.09 0.01 0.05 - 0.01 0.01 0.02 0.04 8.03 0.37 0.40 0.02 0.01 9.07
WST - - - - - - - - - - 2.59 0.34 - - 2.69
CAN - 0.42 0.02 - - 0.01 0.04 0.05 0.06 0.83 0.61 30.33 1.14 0.52 34.03
OTG - 0.08 - 0.01 - - - - - 0.03 - 0.68 8.18 0.61 9.56
STH - 0.05 - - - 0.01 - - - 0.01 0.01 0.28 0.44 10.00 10.79
TOTAL 13.16 45.58 28.45 22.49 4.07 9.18 8.41 9.10 8.87 8.94 3.59 32.91 9.70 11.18 215.63
Source: NFDS
RAIL FREIGHT FLOWS (Million Tonnes)
Origin/Destination NTH AKL WAI BOP GIS HKB TAR MAN WLG TNM WST CAN OTG STH TOTAL
NTH 0.07 0.09 - 0.03 - - - - - - - - - 0.19
AKL 0.02 0.42 0.02 1.20 0.01 0.03 0.19 0.14 0.03 - 0.39 0.03 0.01 2.49
WAI - 0.53 0.31 0.77 - - 0.01 0.01 - - 0.03 - - 1.66
BOP - 0.63 0.24 3.56 - 0.03 0.01 0.01 - - 0.01 - - 4.49
GIS -
HKB - 0.01 - - 0.21 0.04 0.07 0.01 - - 0.04 0.01 - 0.39
TAR - 0.04 - 0.22 0.14 0.01 - 0.02 - - 0.01 0.01 - 0.45
MAN - 0.03 - 0.07 0.45 0.61 0.05 0.17 - - 0.04 - - 1.42
WLG - 0.04 - 0.01 0.01 0.01 0.09 0.29 - - 0.01 - - 0.46
TNM - 0.09 - - 0.01 - 0.01 0.02 - - 0.11 0.01 0.01 0.26
WST - - - - - - - - - 0.01 2.30 0.07 - 2.38
CAN - 0.15 0.02 - 0.01 - 0.06 0.03 0.04 0.13 1.02 0.23 0.09 1.78
OTG - 0.04 0.02 - - - - 0.01 - - 0.06 0.38 0.07 0.58
STH - 0.01 0.03 - - - - - - - 0.12 0.75 0.10 1.01
TOTAL 0.09 2.08 0.64 5.86 - 0.84 0.73 0.49 0.71 0.07 0.14 4.14 1.49 0.28 17.56
Source: KiwiRail, MoT FIGS
New Zealand ports and freight yearbook 2016 23
Rail freight flows Coastal freight flows
Northland (NTH)
ORIGIN REGION
Auckland (AKL)
Waikato (WAI)
Bay of Plenty (BOP)
Hawke’s Bay (HKB)
Taranaki (TAR)
Gisborne (GIS)
Canterbury (CAN)
Wellington (WLG)
Tasman Nelson (TNM)
Manawatu (MAN)
Otago (OTG)
Southland (STH)
Road freight flows
Northland (NTH)
ORIGIN REGION
Auckland (AKL)
Waikato (WAI)
Bay of Plenty (BOP)
Hawke’s Bay (HKB)
Taranaki (TAR)
Gisborne (GIS)
Canterbury (CAN)
Wellington (WLG)
Tasman Nelson (TNM)
Manawatu (MAN)
Otago (OTG)
Southland (STH)
Dairy
Forestry
Other Agri
Petroleum
Coal
Construction
Manufactured Goods
Other
New Zealand Regional Road FlowsGolden Triangle Road Flows – Expanded
Auckland (AKL)
Waikato (WAI)
Bay of Plenty (BOP)
24
Rail freight flows Coastal freight flows
Northland (NTH)
ORIGIN REGION
Auckland (AKL)
Waikato (WAI)
Bay of Plenty (BOP)
Hawke’s Bay (HKB)
Taranaki (TAR)
Gisborne (GIS)
Canterbury (CAN)
Wellington (WLG)
Tasman Nelson (TNM)
Manawatu (MAN)
Otago (OTG)
Southland (STH)
Road freight flows
Northland (NTH)
ORIGIN REGION
Auckland (AKL)
Waikato (WAI)
Bay of Plenty (BOP)
Hawke’s Bay (HKB)
Taranaki (TAR)
Gisborne (GIS)
Canterbury (CAN)
Wellington (WLG)
Tasman Nelson (TNM)
Manawatu (MAN)
Otago (OTG)
Southland (STH)
Dairy
Forestry
Other Agri
Petroleum
Coal
Construction
Manufactured Goods
Other
New Zealand Regional Road FlowsGolden Triangle Road Flows – Expanded
Auckland (AKL)
Waikato (WAI)
Bay of Plenty (BOP)
New Zealand ports and freight yearbook 2016 25
Port performanceOperations
• Major container ports: TRG and AKL continue to be the dominant players in the market with a combined market share of 61% of all containers handled.
• Throughput: TRG is New Zealand’s largest port by overall throughput, handling a record 20.2 million tonnes in 2015, achieving a CAGR of 4.8% over the last decade.
• Containers: AKL remains the highest throughput container port in 2015, handling approximately 972,000 TEU. The Port has several initiatives to boost the Fergusson container terminal capacity: completing the reclamation, building the North berth, and reviewing automation options.
• 6500 TEU capable: TRG, at number 2 for containers, is cementing its Kotahi/Maersk arrangements, with forward growth expected to directly challenge AKL. With channel dredging underway, it will be the first port to have capacity to handle 6500 TEU containerships.
• Highest growth: TIU container volumes have grown over the last year with TEU increasing 250% from circa 20,000 TEU to approximately 70,000 TEU. This can be attributed to its alliance with TRG which has also opened a container facility at Rolleston (South of Christchurch).
• Other significant increases: Three ports had double digit percentage growth: – NPE: [17% ] – Maersk Northerstar Route and containerised pulp (was breakbulk) – WLG: [14% ] – CentreRail initiative – TRG: [12% ] – Kotahi & Maersk.
• NPL volumes dropped due to the loss of all international container services.
• LYT’s volumes eased slightly, commissioning of Cashin Quay 2 removes foreseeable terminal constraints.
• POE had a 5% decline in total container volumes as tranship volumes, full import/export containers and empty containers were all down on the previous period.
• BLU saw 9% growth through improved operations of the two mobile harbour crane operating model.
• NSN had a 3% increase and reported record volumes for the second year in a row.
Source: Annual Reports
0
2
4
6
8
10
12
14
16
18
20
NTH AKL TRG NPL EST NPE WLG NSN MLB LYT TIU POE BLU
Port Trade Composition million tonnes
Containers Bulk Liquids Forestry Coal Other Bulk
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
AKL TRG NPL NPE WLG NSN LTY TIU POE BLU
Port Container Composition TEU
Tranship + Other Domestic Imports Exports
0
20
40
60
80
100
120
140
160
2000 2002 2004 2006 2008 2010 2012 2014 2016
Crude Oil Price US$/bbl
143
107
40
34 26
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
NZ Container Throughput million TEU
2013 2014 2015
0.04
0.17
0.07
0.37
0.090.11
0.26
0.85
0.97
0.00
Ports of Auckland (AKL)
Northport (NTH)
Port Taranaki (NPL)
Port of Tauranga (TRG)
Eastland Port (EPL)
Port of Napier (NPE)
CentrePort (WLG)
Lyttelton Port of Christchurch (LYT)
Port Otago (POE)
South Port (BLU)
PortMarlborough(MLB)
Port Nelson (NSN)
PrimePort Timaru (TIU)
26
Port performanceComposition
Source: FIGS, Annual Reports Source: Annual Reports
The trade characteristics of each port are quite unique, and reflect the mixture of trade generation in the hinterland and the local population base.
• Highest volumes: On throughput TRG stands clear of AKL, followed by NTH and LYT.
• Largest export commodity: While each region has some plantation forestry, its proximity to the extensive Central North Island forests boost TRG forestry exports, New Zealand’s largest single trade. NTH, EST and NPE also feature significant log exports.
• Bulk liquids: The second biggest trade is bulk liquids, being crude oil imports and petroleum product coastal exports through NTH, and crude oil and methanol exports from NPL.
• Other trade: AKL features strongly with Other Bulk, being the key vehicle import port. LYT’s Other Bulk was largely coal exports, although Solid Energy’s receivership raises some questions over coal’s forward volumes.
• Container trade: TRG and AKL attract higher overall container trade, both well ahead of number three, LYT.
• Highest container trade volumes: In 2015, AKL had the highest container volumes in the country with approx. 972,000 TEU. This is closely followed by TRG with 851,000 TEU.
• Import volumes: AKL has the highest import volumes in the country, and accounts for close to 40% of the total import volumes.
• Export volumes: TRG has the highest export volumes in the country and accounts for approximately 38% of total export volumes.
• Import-Export gap: AKL, TRG, & NPE all have a significant import and export imbalance. AKL import volumes are almost twice as large as export volumes. While TRG and NPE import volumes are almost two thirds of their export volumes. The rest of the ports have an Imports: Exports ratio of between 0.86-1.14.
• Domestic containers: AKL & LYT account for circa 85% domestic volumes.
0
2
4
6
8
10
12
14
16
18
20
NTH AKL TRG NPL EST NPE WLG NSN MLB LYT TIU POE BLU
Port Trade Composition million tonnes
Containers Bulk Liquids Forestry Coal Other Bulk
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
AKL TRG NPL NPE WLG NSN LTY TIU POE BLU
Port Container Composition TEU
Tranship + Other Domestic Imports Exports
0
20
40
60
80
100
120
140
160
2000 2002 2004 2006 2008 2010 2012 2014 2016
Crude Oil Price US$/bbl
143
107
40
34 26
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
NZ Container Throughput million TEU
2013 2014 2015
0.04
0.17
0.07
0.37
0.090.11
0.26
0.85
0.97
0.00
New Zealand ports and freight yearbook 2016 27
Port performanceContainer terminal efficiency
35
45
55
65
75
85
95
2009 2010 2011 2012 2013 2014 2015
New Zealand Port Ship Rates
30
40
50
60
70
80
2009 2010 2011 2012 2013 2014 2015
New Zealand Port Vessel Rates
-
50,000
100,000
150,000
200,000
250,000
0
200
400
600
800
1,000
1,200
1,400
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Container Ship & Crane Utilisation TEU per year
TEU / Container Ship est TEU/Quay Crane (rhs) TEU/Mobile Crane (rhs)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
0
200
400
600
800
1,000
1,200
1,400
1,600
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Container Terminal Utilisation TEU per year
TEU / Container Wharf Metre TEU / Terminal ha (rhs)
0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Bulk Terminal Utilisation TEU per year
Bulk Tonnes / General Wharf Metre Bulk Tonnes / Bulk Terminal ha (rhs)
20
25
30
35
40
2009 2010 2011 2012 2013 2014 2015
New Zealand Port Crane Rates
AKL TRG NPE WLG LYT POE
AKL TRG NPE WLG LYT POE
AKL TRG NPE WLG LYT POE
NZ Port Crane RatesCrane lifts/hour
FY2012 FY2013 FY2014 FY2015
JUN AKL WAI BOP GIS HKB TAR MAN WLG TNM WST CAN OTG
AKL 29.8 31.4 32.1 31.3 32.5 33.8 33.0 33.3 34.0 33.1 33.3 36.4 37.3
TRG 31.2 34.2 34.5 33.8 35.6 37.1 36.5 36.7 37.2 36.2 34.8 36.4 35.6
NPE 23.3 22.4 22.1 23.2 22.4 22.8 24.4 23.0 22.3 24.7 23.8 24.2 23.3
WLG 31.4 33.7 34.3 34.8 35.8 33.7 33.7 34.2 34.5 32.7 32.0 30.9 28.9
LYT 27.4 28.9 30.5 30.4 29.2 31.6 28.8 28.8 27.3 30.1 30.5 30.4 31.4
POE 32.4 31.5 34.1 33.4 33.1 34.1 33.5 32.3 32.6 34.9 33.6 33.9 32.2
NZ 29.6 31.4 32.3 31.5 32.2 33.7 32.8 32.5 32.8 33.2 32.6 33.9 33.8
Source: FIGS
FY2012 FY2013 FY2014 FY2015
JUN AKL WAI BOP GIS HKB TAR MAN WLG TNM WST CAN OTG
AKL 64.0 75.5 78.5 73.2 76.1 86.0 80.1 77.2 83.6 74.6 81.4 88.6 91.3
TRG 55.6 66.4 65.9 59.2 70.5 73.5 72.6 74.9 76.3 77.1 76.9 80.8 83.0
NPE 51.2 46.8 45.6 53.6 53.4 51.4 56.5 50.0 48.3 56.1 58.3 61.3 54.4
WLG 48.3 49.4 58.0 58.6 62.6 61.5 62.7 65.3 65.6 58.9 58.1 54.4 48.1
LYT 53.6 55.0 60.2 58.7 59.9 63.6 59.6 57.9 58.1 62.0 60.9 59.5 61.3
POE 60.9 60.6 64.5 72.9 60.9 61.1 74.2 61.1 59.1 59.2 59.3 60.9 58.4
NZ 57.4 65.3 67.2 64.2 67.9 73.7 71.8 69.1 72.0 70.8 72.6 75.9 76.7
Source: FIGS
FY2012 FY2013 FY2014 FY2015
JUN AKL WAI BOP GIS HKB TAR MAN WLG TNM WST CAN OTG
AKL 56.8 66.7 69.3 65.0 67.7 76.3 71.3 68.5 73.7 65.6 72.8 73.4 80.1
TRG 47.8 54.2 42.6 59.5 57.9 60.8 59.9 62.3 62.3 61.0 63.7 65.1 62.4
NPE 38.5 36.7 35.4 40.8 41.0 38.5 43.2 37.1 36.5 43.2 44.0 45.2 43.1
WLG 41.1 48.6 44.9 50.8 51.1 50.9 52.7 55.7 58.1 49.3 51.5 47.0 39.1
LYT 42.7 42.8 46.7 43.2 43.5 46.4 44.5 43.5 44.0 45.5 44.4 41.9 42.8
POE 48.4 47.9 51.6 60.2 49.9 49.0 60.6 49.7 47.5 47.5 48.4 50.1 47.8
NZ 48.6 54.8 51.8 56.7 56.2 61.6 60.1 57.8 60.1 57.9 60.8 60.8 61.5
Source: FIGS
NZ Port Ship RatesContainers/hour
NZ Port Vessel RatesContainers/labour hour
28
Port performancePort utilisationThe utilisation metrics in the adjacent charts have been estimated using port statistics.
Container Ship Utilisation:
• Major container ports (AKL, TRG, LYT) had the highest container ship utilisation, followed by BLU.
• The two major container ports by throughput (AKL and TRG) both have significantly higher crane utilisation than all other ports.
• NPL estimate is excluded, due to low levels of containers recorded in FY15.
Container Terminal Utilisation:
• Major container ports (AKL, TRG, NPE, LYT) had the highest TEU/Container Wharf/Metre.
• LYT, AKL had the highest container land utilisation (TEU/Terminal ha).
Bulk Terminal Utilisation:
• Ports with bulk throughput > 50% of total throughput (TRG & NPL) had significantly higher wharf utilisation (Bulk Tonnes/General Wharf metre).
• AKL, NPL & POE had the highest land utilisation (Bulk Tonnes/Bulk Terminal ha). 35
45
55
65
75
85
95
2009 2010 2011 2012 2013 2014 2015
New Zealand Port Ship Rates
30
40
50
60
70
80
2009 2010 2011 2012 2013 2014 2015
New Zealand Port Vessel Rates
-
50,000
100,000
150,000
200,000
250,000
0
200
400
600
800
1,000
1,200
1,400
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Container Ship & Crane Utilisation TEU per year
TEU / Container Ship est TEU/Quay Crane (rhs) TEU/Mobile Crane (rhs)
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
0
200
400
600
800
1,000
1,200
1,400
1,600
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Container Terminal Utilisation TEU per year
TEU / Container Wharf Metre TEU / Terminal ha (rhs)
0 20,000 40,000 60,000 80,000 100,000 120,000 140,000 160,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Bulk Terminal Utilisation TEU per year
Bulk Tonnes / General Wharf Metre Bulk Tonnes / Bulk Terminal ha (rhs)
20
25
30
35
40
2009 2010 2011 2012 2013 2014 2015
New Zealand Port Crane Rates
AKL TRG NPE WLG LYT POE
AKL TRG NPE WLG LYT POE
AKL TRG NPE WLG LYT POE
New Zealand ports and freight yearbook 2016 29
Port performanceFinancialsIn 2014 all ports posted improved revenue results. In 2015 this has not been the case.
Seven ports reported revenue increases. Drivers for revenue increases include:
• Improved port operations.
• Container volume growth.
• Improved log exports.
• Increased cruise ship activity.
• New operating structures.
• Overall volume improvements.
However, five ports reported revenue decreases, largely driven by:
• Reduced volumes.
• Sales of subsidiary companies.
• Lower property rentals.
All ports reported positive profits in 2015. However, all but TRG and WLG declined on reported profitability in 2014.
• Ports with profitability increases: Tauranga saw revenue improvements through to the bottom line. Wellington rebounded given the port’s return to normal services following the earthquake impacted results of 2014.
• Ports with profitability decreases: Other ports saw lower profitability levels due to factors such as decreased volumes, increased competition for market share and flat or rising expenses such as employees, financing costs, and revaluation changes.
0
50
100
150
200
250
300
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Revenue $ million
2011 2012 2013 2014 2015
0
10
20
30
40
50
60
70
ALK TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Cash Dividends Paid $ million
0
20
40
60
80
100
120
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Capital Expenditure Real 2015 $ millions
0
100
200
300
400
ALK TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Cash Net Debt $ million
0
2
4
6
8
10
12
14
0%
10%
20%
30%
40%
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Debt Covenants
Gearing (D/D+E) Interest Cover (RHS)
0
50
100
150
200
250
300
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Profitability $ million
NPAT Tax Interest Depreciation Expenses
2011 2012 2013 2014 2015
2011 2012 2013 2014 2015
2011 2012 2013 2014 2015
7.4 6.94.2 2.1
22.2
218
268
4972 70
4224
109
6.0
34.0
6.130.021.2
102.184.3
28.7
287.4
209.6
-186.5
15
8235
0.68.4
6.03.7
62.0
54.8
218.3
268.5
49.372.1 69.8
42.224.5
109.1
15.4
81.6
34.6
30.0
60.1
11.819.2
11.2
2.0 3.8
98.1
13.9
31.4
6.7
30
Source: Annual Reports, Deloitte Source: Annual Reports
All port shareholders received a dividend in 2015.
• The above table shows actual pay-out ratios for 2015. Dividend pay-out ratio for Auckland was high due to the normalisation of an impairment reversal.
• LYT paid a special dividend in September 2014 following the successful takeover of LYT by Christchurch City Holdings Limited (CCHL).
• TIU had its first full year under its new shareholding structure with Timaru District Holdings and TRG. The higher pay-out in 2014 reflected the release of retained earnings related to this change in ownership structure.
Large capital investments are underway for many of the ports. Port development includes:
• AKL: Freight hubs, wharf extension and demolition, Holcim cement silo dome.
• TRG: Undertaking a $350m capital expenditure project to be able to host ships carrying 6,500 – 7,000 TEUs.
• LYT: Continues with redevelopment post-earthquake. The Lyttelton Port Recovery Plan was approved in November 2015, providing direction for further development.
• POE: Commenced four projects as part of the NextGeneration project to ready the port for larger vessels.
• Typical port projects for 2015 included dredging, investment in port capability (such as cranes, tugs, automation), and seawalls.
0
50
100
150
200
250
300
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Revenue $ million
2011 2012 2013 2014 2015
0
10
20
30
40
50
60
70
ALK TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Cash Dividends Paid $ million
0
20
40
60
80
100
120
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Capital Expenditure Real 2015 $ millions
0
100
200
300
400
ALK TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Cash Net Debt $ million
0
2
4
6
8
10
12
14
0%
10%
20%
30%
40%
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Debt Covenants
Gearing (D/D+E) Interest Cover (RHS)
0
50
100
150
200
250
300
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Profitability $ million
NPAT Tax Interest Depreciation Expenses
2011 2012 2013 2014 2015
2011 2012 2013 2014 2015
2011 2012 2013 2014 2015
7.4 6.94.2 2.1
22.2
218
268
4972 70
4224
109
6.0
34.0
6.130.021.2
102.184.3
28.7
287.4
209.6
-186.5
15
8235
0.68.4
6.03.7
62.0
54.8
218.3
268.5
49.372.1 69.8
42.224.5
109.1
15.4
81.6
34.6
30.0
60.1
11.819.2
11.2
2.0 3.8
98.1
13.9
31.4
6.7
0
50
100
150
200
250
300
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Revenue $ million
2011 2012 2013 2014 2015
0
10
20
30
40
50
60
70
ALK TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Cash Dividends Paid $ million
0
20
40
60
80
100
120
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Capital Expenditure Real 2015 $ millions
0
100
200
300
400
ALK TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Cash Net Debt $ million
0
2
4
6
8
10
12
14
0%
10%
20%
30%
40%
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Debt Covenants
Gearing (D/D+E) Interest Cover (RHS)
0
50
100
150
200
250
300
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Profitability $ million
NPAT Tax Interest Depreciation Expenses
2011 2012 2013 2014 2015
2011 2012 2013 2014 2015
2011 2012 2013 2014 2015
7.4 6.94.2 2.1
22.2
218
268
4972 70
4224
109
6.0
34.0
6.130.021.2
102.184.3
28.7
287.4
209.6
-186.5
15
8235
0.68.4
6.03.7
62.0
54.8
218.3
268.5
49.372.1 69.8
42.224.5
109.1
15.4
81.6
34.6
30.0
60.1
11.819.2
11.2
2.0 3.8
98.1
13.9
31.4
6.7
Dividend Payout Ratios
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Normalised NPAT 52.0 79.1 11.4 12.9 14.9 7.6 4.9 20.6 3.0 27.5 7.7
Dividend 54.8 62.0 3.7 7.4 6.9 4.2 2.1 22.2 0.6 8.4 6.0
Payout Ratio 105.3% 78.4% 32.5% 57.2% 45.8% 55.1% 42.7% 107.7% 19.8% 30.6% 78.1%
Normalised NPAT = NPAT less abnormal income adjusted for tax Abnormal items include gains/losses on sale of assets, revaluations, and impairment charges.
New Zealand ports and freight yearbook 2016 31
New Zealand ports are investing for the next generation of ships and improving port infrastructure. Total net debt (interest bearing debt less cash) in 2015 was $810 million, down from $825 million in 2014 (down 2%). This excludes LYT, which had negative net debt in both periods.
• TRG’s debt to their parent company increased 13% in 2015.
• NPE increased their net debt by 34% from $62.8 to $84.3 million.
• LYT remains debt free following insurance settlement in 2014.
• POE reduced debt through their sale of its LYT interest which generated $65 million. POE borrowings were reduced from $120m to $55 million.
The above ratios indicate a company’s capacity for additional borrowing and ability to service current debt levels.
• The gearing ratio is calculated as debt divided by debt plus equity.
• The average gearing ratio in 2015 was 15.4%, up from 14.3% in 2014.
• The interest cover ratio is calculated as normalised EBIT (removal of associate or joint venture earnings and abnormal items) divided by net interest expense.
• MLB has a reduced interest cover ratio compared to 2014, impacted by finance costs on losses on derivatives in 2015.
• WLG at 1.9 times interest coverage, reflecting its investment property portfolio records the lowest ratio.
Source: Annual Reports, Deloitte Source: Annual Reports, Deloitte
0
50
100
150
200
250
300
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Revenue $ million
2011 2012 2013 2014 2015
0
10
20
30
40
50
60
70
ALK TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Cash Dividends Paid $ million
0
20
40
60
80
100
120
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Capital Expenditure Real 2015 $ millions
0
100
200
300
400
ALK TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Cash Net Debt $ million
0
2
4
6
8
10
12
14
0%
10%
20%
30%
40%
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Debt Covenants
Gearing (D/D+E) Interest Cover (RHS)
0
50
100
150
200
250
300
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Profitability $ million
NPAT Tax Interest Depreciation Expenses
2011 2012 2013 2014 2015
2011 2012 2013 2014 2015
2011 2012 2013 2014 2015
7.4 6.94.2 2.1
22.2
218
268
4972 70
4224
109
6.0
34.0
6.130.021.2
102.184.3
28.7
287.4
209.6
-186.5
15
8235
0.68.4
6.03.7
62.0
54.8
218.3
268.5
49.372.1 69.8
42.224.5
109.1
15.4
81.6
34.6
30.0
60.1
11.819.2
11.2
2.0 3.8
98.1
13.9
31.4
6.7
0
50
100
150
200
250
300
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Revenue $ million
2011 2012 2013 2014 2015
0
10
20
30
40
50
60
70
ALK TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Cash Dividends Paid $ million
0
20
40
60
80
100
120
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Capital Expenditure Real 2015 $ millions
0
100
200
300
400
ALK TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Cash Net Debt $ million
0
2
4
6
8
10
12
14
0%
10%
20%
30%
40%
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Debt Covenants
Gearing (D/D+E) Interest Cover (RHS)
0
50
100
150
200
250
300
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Profitability $ million
NPAT Tax Interest Depreciation Expenses
2011 2012 2013 2014 2015
2011 2012 2013 2014 2015
2011 2012 2013 2014 2015
7.4 6.94.2 2.1
22.2
218
268
4972 70
4224
109
6.0
34.0
6.130.021.2
102.184.3
28.7
287.4
209.6
-186.5
15
8235
0.68.4
6.03.7
62.0
54.8
218.3
268.5
49.372.1 69.8
42.224.5
109.1
15.4
81.6
34.6
30.0
60.1
11.819.2
11.2
2.0 3.8
98.1
13.9
31.4
6.7
32
Du Pont analysis breaks down Return on Asset (ROA) and Return on Equity (ROE) into their components making it possible to identify the causes of variation in ratios between ports based on company specific factors.
Definitions of metrics:
• ROA is a firm’s asset turnover multiplied by its net profit margin.
• The equity multiplier is the ratio of assets divided by equity.
• ROE is the product of ROA and a firm’s equity multiplier.
• Asset turnover measures how well a company utilises its assets to generate sales (sales divided by assets).
• Net profit margin (net profit after tax divided by sales) measures how much of every $1 of revenue a firm converts into net profit.
Port Comments
• POE and TRG show the highest net profit margins across all ports with margins around 30%.
• Most other ports have net profit margins of closer to 20% (17.9% - 24.5%). WLG and TIU nearly doubled their margins since 2015.
• BLU and NPL exhibited high asset efficiency compared to other ports.
• Equity multiplier ratios are influenced by the gearing level of the ports. The ratio continues with the same nationwide average at 1.40 as 2014. AKL and WLG, which both have relatively higher levels of debt compared to the other ports consequently have higher equity multipliers.
• LYT currently has the lowest equity multiplier (due to having no interest bearing debt), has the third lowest asset turnover ratio, and consequently has the lowest return on equity, which is consistent with its placing in 2015. However, ROE has increased from 2.8% the year prior.
• BLU once again has the highest ROE, which is attributable to an exceptionally high asset turnover rate (more than double the next highest rate).
Du Pont Analysis
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU NZ
Net Profit Margin 23.8% 29.5% 23.1% 17.9% 21.4% 18.0% 20.1% 18.9% 19.8% 33.7% 22.4% 24.5%
Asset Turnover 25.7% 20.7% 30.1% 24.4% 21.4% 22.6% 16.7% 18.5% 27.8% 17.7% 73.3% 22.3%
Return on Assets 6.1% 6.1% 7.0% 4.4% 4.6% 4.1% 3.4% 3.5% 5.5% 6.0% 16.4% 5.5%
Equity Multiplier 1.63 1.46 1.33 1.50 1.62 1.27 1.44 1.11 1.22 1.23 1.42 1.40
Return on Equity 10.0% 8.9% 9.3% 6.5% 7.4% 5.2% 4.9% 3.9% 6.7% 7.3% 23.2% 7.7%
Source: Thomson Reuters
New Zealand ports and freight yearbook 2016 33
Port comparator tablesPort Facilities & Capacity Comparison
AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Port Harbour Type Natural Natural Breakwater Breakwater Natural Natural Natural Natural Breakwater Natural Natural
Draught (m) (min) 12.5 11.7 12.5 12.4 11 9.8 13.5 12.5 11.5 13.5 9.7
Port Operating Land (ha) 77 190 65 60 70 45 10 90 93 25 40
Container Terminal Area (ha) 34 72 7 19 24 9 0 14 8 15 3
Total Wharf Length (km) 4.10 2.83 1.72 1.61 4.08 1.17 0.62 2.70 1.51 2.76 1.92
Container Wharf Length (km) 0.69 0.77 0.42 0.39 0.59 0.48 0.00 0.59 0.46 0.60 0.43
% Trade Containers 68% 43% 0% 46% 32% 46% 0% 37% 31% 49% 14%
Quay Cranes 5 7 2 4 3
Mobile Cranes 3 6 3 2 2
Forklifts/Stackers 17 4 32 24 8 14 7
Straddles 43 40 12 23 15
Reefer Slots 1,467 2,090 459 1,111 800 750 756 750 1,850 200
Tugs 6 3 3 2 2 2 2 2 3 2
Pilot Launches 2 2 2 1 2 1 1 1 2 1
Rail Connection Yes Yes Yes Yes Yes No Yes Yes No Yes Yes
Bulk Tonnes Handled (millions) 5.9 12.8 5.6 2.2 2.0 1.4 0.8 4.7 1.3 1.4 2.5
NZ Cargo Volume Rank 2 1 3 6 10 7 11 4 9 8 5
Bulk Ship Calls (est) 300 881 776 284 287 577 159 634 306 261 253
TEU Throughput (000) 972.4 851.1 256.4 107.4 90.4 367.1 70.4 172.8 35.8
NZ Container Volume Rank 1 2 4 6 7 3 8 5 10
Container Ship Calls (est) 1,010 674 369 196 170 373 136 247 48
Bulk Tonnes / Bulk Terminal ha 137,209 108,720 141,251 53,659 43,792 38,889 76,032 61,932 15,239 140,800 66,541
TEU / Terminal ha 28,601 11,821 13,497 4,420 10,047 25,674 8,794 11,520 11,933
Bulk Tonnes / General Wharf Metre 1,732 6,243 4,292 1,811 573 2,003 1,226 2,225 1,240 651 1,651
TEU / Container Wharf Metre 1,409 1,105 658 183 190 619 153 289 84
Bulk Tonnes / Ship 19,667 14,556 7,190 7,746 6,969 2,426 4,782 7,398 4,240 5,394 9,731
TEU / Container Ship 963 1,263 695 548 532 984 515 700 746
TEU / Container Crane 194,487 121,587 51,288 53,704 30,141 91,786 35,177 57,600 17,900
Ship Rate 87.0 83.3 58.7 51.7 61.7 59.7
Vessel Rate 75.8 66.4 44.5 44.7 45.5 49.0
Crane Rate 36.6 35.9 24.2 29.9 31.3 33.1
Source: Company Reports, Deloitte, MoT, Port Management
34
New Zealand Port Summary – NZ$ million
FY 2015 AKL TRG NPL NPE WLG NSN MLB LYT TIU POE BLU
Income Statement
Revenue 218.3 268.5 49.3 72.1 69.8 42.2 24.5 109.1 15.4 81.6 34.6
Revenue - Port 217.3 200.1 46.8 72.0 64.4 36.3 15.8 109.1 13.1 62.9 34.6
Expenses 132.5 136.0 26.0 42.3 48.0 24.7 13.0 79.4 10.4 45.1 20.2
Gross Profit 85.8 132.5 23.3 29.7 21.8 17.5 11.4 29.6 4.9 36.5 14.4
Associate Earnings 2.0 10.3 - - 7.6 (0.1) - - - 0.3 -
One-Offs 15.5 0.7 0.0 - (1.3) (0.1) 0.4 - 0.3 34.6 0.0
EBITDA 103.3 143.5 23.3 29.7 28.1 17.3 11.8 29.6 5.2 71.5 14.4
Deprn&Amort 21.1 23.2 6.0 7.6 6.5 5.2 2.3 12.4 0.9 8.7 2.7
EBIT 82.2 120.2 17.3 22.2 21.6 12.2 9.5 17.3 4.3 62.8 11.7
Net Interest Expense 11.2 14.8 1.3 4.2 8.2 1.8 2.9 (12.2) 0.0 4.2 0.9
Taxation Expense 7.8 26.2 4.6 5.1 (0.7) 2.9 1.4 8.9 1.1 6.2 3.0
Reported Profit 63.2 79.1 11.4 12.9 14.0 7.5 5.2 20.6 3.2 52.4 7.7
Other Comprehensive
Income
17.8 64.5 (1.8) (2.2) (0.4) (1.0) - 0.2 0.8 (13.7) 0.2
Comprehensive Income 81.0 143.6 9.6 10.7 13.7 6.5 5.2 20.8 4.0 38.8 7.9
Normalised Profit 52.0 79.1 11.4 12.9 14.9 7.6 4.9 20.6 3.0 27.5 7.7
Cashflow Statement summary
Net Operating CF 84.2 90.6 18.4 20.9 17.3 11.2 8.0 24.4 3.8 28.8 12.0
Balance Sheet
Port Fixed Assets 666.6 1,097.4 155.6 288.7 180.7 164.6 65.4 327.9 32.9 158.6 40.6
Total Assets 850.1 1,297.0 163.5 301.5 326.7 187.1 146.4 589.5 55.4 461.8 47.2
Net Debt 209.6 287.4 28.7 84.3 102.1 21.2 30.0 (186.5) 6.1 34.0 6.0
SHF 521.3 887.6 122.8 186.9 202.0 147.8 101.6 531.7 45.5 375.2 33.3
Ratios
Share of NZ Sales 22.2% 27.3% 5.0% 7.3% 7.1% 4.3% 2.5% 11.1% 1.6% 8.3% 3.5%
Gearing (D/D+E) 28.7% 24.5% 19.0% 31.1% 33.6% 12.6% 22.8% 11.8% 8.3% 15.4%
Gearing ex Revaluations 33.8% 0.0% 28.0% 39.7% 42.3% 27.7% 17.9% 17.2% 13.1% 15.4%
EBIT Margin 37.7% 44.8% 35.1% 30.7% 31.0% 28.8% 38.6% 15.8% 28.2% 77.0% 33.8%
ROE 10.0% 8.9% 9.3% 6.9% 7.4% 5.2% 4.9% 3.9% 6.7% 7.3% 23.2%
ROA 6.1% 6.1% 7.0% 4.3% 4.6% 4.1% 3.4% 3.5% 5.5% 6.0% 16.4%
New Zealand ports and freight yearbook 2016 35
Port Summaries
Ports of Auckland (AKL)
Northport (NTH)
Port Taranaki (NPL)
Port of Tauranga (TRG)
Eastland Port (EPL)
Port of Napier (NPE)
CentrePort (WLG)
Lyttelton Port of Christchurch (LYT)
Port Otago (POE)
South Port (BLU)
PrimePort Timaru (TIU)
PortMarlborough(MLB)
Port Nelson (NSN)
36
Ports of Auckland - AKLOverviewAKL’s key facilities include its container and multi-purpose cargo terminals on the Waitemata Harbour (adjacent to Auckland’s CBD) and inland ports at Wiri, Mt Maunganui, Longburn and Waikato. The port also has a stake in NZX-listed Marsden Maritime Holdings (20%), pilotage providers North Tugz (50%), and commercial marine fuel supplier Seafuels (100%). Auckland is the first port of call for a number of international services, receiving full import containers (typically consumer goods) and generating a strong flow of empty containers destined for export weighted ports across New Zealand.
Port DevelopmentFreight hubs:
• Development of Wiri continues.
• Opened Freight Hub – Longburn (Manawatu region).
• Acquiring site in Hamilton (North Gate).Wharves:
• Extended Ferguson Container terminal.
• Started construction of Fergusson North (expected 2017).
• Demolition of Marsden Wharf.
• Resource consent setback of Bledisloe Wharf.Other
• Sold subsidiary Conlinxx.
• Building Holcim cement silo dome.
• Investigating supply chain partnerships in South Island.
• Investigating automation of container terminal.
• Introduced a new terminal operating system in July 2015.
Trade & Operations
• Container TEU: 972,434 (0.4% ) – achieved record high volumes, significant due to lost Maersk volumes.
• Vehicles: 243,801 (17.4% ) – *Record high*.
• Total Breakbulk: 5.9m tonnes of (4.4%).
Financial Performance
• Revenues: $218.3m (1% ) – due to Conlinxx sale.
• Expenses: $132.5m (15% ).
• Abnormal: $15.5m ($11.3m ) – major revaluation.
• Net Profit After Tax: $63.2m ($10.8m ) – major revaluation.
• Gearing Ratio: 28.7%.
PORT OF AUCKLAND – AKL
Income Statement FY12 FY13 FY14 FY15
Revenue 178.6 188.4 221.2 218.3
Revenue Port Operations 175.4 186.6 219.9 217.3
Operating Expenses 109.7 111.9 115.3 132.5
Gross Profit 68.9 76.5 105.9 85.8
Associate/JV Earnings 4.1 2.4 3.1 2.0
One Offs / Other Items (42.6) 0.8 4.1 15.5
EBITDA 30.4 79.7 113.1 103.3
Depreciation & Amortisation 19.0 20.3 23.8 21.1
EBIT 11.4 59.4 89.3 82.2
Net Interest Expense 17.8 14.1 11.7 11.2
Taxation 5.5 6.4 3.6 7.8
NPAT (11.9) 38.9 74.0 63.2
Other Comprehensive Income 61.2 11.1 4.5 17.8
Comprehensive Income 49.3 50.0 78.5 81.0
JUNE BALANCE DATE
Balance Sheet FY12 FY13 FY14 FY15
Current Assets 26.0 27.2 35.7 30.2
Fixed Assets 634.3 626.4 617.3 666.6
Intangibles 9.2 11.6 15.3 17.2
Deferred Tax Benefit - - - -
Investments 6.8 7.4 9.2 9.6
Other Assets 79.5 87.8 98.8 126.4
Total Assets 755.9 760.3 776.3 850.1
Current Liabilities 30.9 36.5 34.9 48.0
Debt 223.6 203.5 186.9 212.9
Other Non Current Liabilities 68.6 64.2 61.2 67.8
Shareholders’ Funds 432.2 456.1 493.4 521.3
Minority Interests 0.5 - - -
Total Liabilities/SHF 755.9 760.3 776.3 850.1
Cashflow
Operating Cash Received 209.9 220.3 257.7 266.5
Operating Cash Paid 167.2 159.7 163.9 182.3
Net Operating Cash Flow 42.8 60.5 93.8 84.2
less Earthquake Costs - - - -
less Asset Purchases 10.1 14.5 29.2 43.3
less Dividends Paid 17.5 26.1 51.0 54.8
Funding Surplus (Deficit) 15.2 19.9 13.6 (13.9)
Insurance Proceeds - - - -
Proceeds of Asset Sales 1.9 0.2 3.3 2.2
Increase in Net Debt (17.1) (20.1) (16.9) 11.7
Equity Raised - - - -
Funding Provided (15.2) (19.9) (13.6) 13.9
0
100
200
300
Income Statement – AKL
0
500
1,000
Balance Sheet – AKL
Ports of Auckland - AKL
1995 1998 2001 2004 2007 2010 2013
Liabilities (ex debt) DebtRevaluation Reserves SHF (ex revals)Total Assets
1997 2000 2003 2006 2009 2012 2015
Reported Profit TaxInterest DepreciationExpenses Revenues
New Zealand ports and freight yearbook 2016 37
Port of Tauranga - TRGOverviewTRG’s key facilities include the Mount Maunganui bulk terminal, Sulphur Point container terminal, MetroPort and its South Auckland inland container port. The port has a high degree of vertical integration with interests in other ports, stevedoring, and freight transport. Tauranga has a strong export focus given its hinterland and a 10-year contract with Kotahi (Fonterra). Coda Group, a new logistics joint venture, was formed in May 2015 through a merger of Tapper Transport, MetroPack and TRG’s shareholding in MetroBox with DTL. As a result of this contract, export volumes have increased in TRG and TIU container terminals.
Port Development
• Two new gantry cranes scheduled to arrive by December 2016.
• A third mobile container crane has been commissioned at the Timaru Container Terminal.
• The inland port at Rolleston opened for business in August 2015 (MetroPort Christchurch).
• TRG has a dredging project scheduled to start in October 2015 to be able to host ships carrying 6,500 – 7,000 TEUs, which is the final stage of a $350 million capital expenditure programme.
• Two new 74 tonne bollard pull tugs, increasing the tug fleet to three & dredging contract awarded.
Trade
• Container TEU: 851,106 (12% ).
• Total Cargo Handling: 20.2m tonnes (2%).
• Total Exports: 13.3m tonnes (1% ).
• Largest port in New Zealand.
Financial Performance
• Revenues: $268.5m (0.8% ) – due to 5.5% in revenue from port operations.
• Operating Expenses: $136.0m (1.3% ).
• Net Profit After Tax: $79.1m (1.1% ).
• Gearing Ratio: 24.5%.
• Share Prices: $18.26 (8% y.o.y from Mar 1 2014).
• Dividends Paid: $0.52 (4% ).
PORT OF TAURANGA – TRG
Income Statement FY12 FY13 FY14 FY15
Revenue 226.2 244.0 266.3 268.5
Revenue Port Operations 184.7 191.0 189.7 200.1
Operating Expenses 112.9 121.0 134.3 136.0
Gross Profit 113.3 123.0 132.0 132.5
Associate/JV Earnings 12.3 10.4 9.4 10.3
One Offs / Other Items (0.3) 38.4 0.1 0.7
EBITDA 125.3 171.7 141.5 143.5
Depreciation & Amortisation 17.1 18.6 22.4 23.2
EBIT 108.2 153.1 119.1 120.2
Net Interest Expense 10.9 15.9 14.3 14.8
Taxation 23.8 25.1 26.6 26.2
NPAT 73.5 112.1 78.3 79.1
Other Comprehensive Income 4.4 10.8 3.3 64.5
Comprehensive Income 77.9 123.0 81.6 143.6
JUNE BALANCE DATE
Balance Sheet FY12 FY13 FY14 FY15
Current Assets 44.0 71.2 41.2 59.0
Fixed Assets 889.0 946.9 998.7 1,097.4
Intangibles 16.9 42.6 43.9 21.4
Deferred Tax Benefit - - - -
Investments 62.0 49.9 71.1 119.0
Other Assets 21.9 1.9 - 0.3
Total Assets 1,033.9 1,112.6 1,154.9 1,297.0
Current Liabilities 34.1 33.7 31.8 33.8
Debt 196.0 226.1 256.3 305.4
Other Non Current Liabilities 69.8 58.9 54.3 70.3
Shareholders’ Funds 734.0 793.9 812.4 887.6
Minority Interests (0.1) - - -
Total Liabilities/SHF 1,033.9 1,112.6 1,154.9 1,297.0
Cashflow
Operating Cash Received 223.2 249.1 262.8 270.9
Operating Cash Paid 148.7 165.7 180.4 180.3
Net Operating Cash Flow 74.5 83.4 82.4 90.6
less Earthquake Costs - - - -
less Asset Purchases 43.8 105.5 97.2 66.0
less Dividends Paid 44.3 63.0 63.0 69.4
Funding Surplus (Deficit) (13.6) (85.2) (77.9) (44.9)
Insurance Proceeds - - - -
Proceeds of Asset Sales 4.2 74.8 4.4 2.6
Increase in Net Debt 0.8 1.6 65.3 32.7
Equity Raised 0.0 (0.0) 0.0 0.2
Funding Provided 13.6 85.2 77.9 44.0
0
100
200
300
Income Statement – TRG
0
500
1,000
1,500
Balance Sheet – TRG
Ports of Tauranga – TRG
1995 1998 2001 2004 2007 2010 2013
Reported Profit TaxInterest DepreciationExpenses Revenues
1995 1998 2001 2004 2007 2010 2013
Liabilities (ex debt) DebtRevaluation Reserves SHF (ex revals)Total Assets
38
Port Taranaki - NPLOverview NPL is the only deep water port on New Zealand’s western seaboard and services bulk liquids (serving the region’s oil and gas industry), dry bulk (logs, fertiliser, stock feed) and project cargo.
Port Development
• Partial demolition of the plant and buildings on the former New Plymouth Power Station to make way for bulk feed storage.
• Investment made in ShoreTension hydraulic rams to dampen the motion of vessels while berthed.
Trade
• Total Trade Volumes: 5.6m tonnes (1.7% ) – driven by growth in bulk liquid sector (5% ) and dry bulk sector (20% ).
• Ending of container trade to NPL after Pacifica stopped a container service linking New Plymouth to Auckland and Tauranga in October 2014 – following on from MSC dropping the port from its service in FY14.
Performance
• Revenues: $49.3m (10.7% ) – due to reductions in log, container volumes and activities associated with offshore exploration.
• Operating Expenses: $26.0m (14.8% ).
• Net Profit After Tax: $11.4m (2.6% ).
• Gearing Ratio: 19.0%.
PORT TARANAKI – NPL
Income Statement FY12 FY13 FY14 FY15
Revenue 41.3 45.0 55.2 49.3
Revenue Port Operations 38.1 41.9 49.4 46.8
Operating Expenses 25.7 26.6 30.5 26.0
Gross Profit 15.6 18.4 24.7 23.3
Associate/JV Earnings - - - -
One Offs / Other Items (0.3) (0.0) (0.2) 0.0
EBITDA 15.3 18.4 24.5 23.3
Depreciation & Amortisation 6.6 6.2 6.2 6.0
EBIT 8.7 12.2 18.3 17.3
Net Interest Expense 2.3 1.5 1.9 1.3
Taxation 2.0 3.2 4.6 4.6
NPAT 4.4 7.5 11.7 11.4
Other Comprehensive Income - 13.0 0.7 (1.8)
Comprehensive Income 4.4 20.5 12.4 9.6
JUNE BALANCE DATE
Balance Sheet FY12 FY13 FY14 FY15
Current Assets 7.6 5.8 8.4 6.4
Fixed Assets 119.0 146.5 151.5 155.6
Intangibles 1.2 0.8 0.5 0.8
Deferred Tax Benefit - - 0.6 0.7
Investments - - - -
Other Assets - 0.6 1.3 0.0
Total Assets 127.8 153.7 162.3 163.5
Current Liabilities 6.5 6.0 11.5 8.8
Debt 27.3 36.7 32.0 30.0
Other Non Current Liabilities 3.0 2.5 1.5 1.9
Shareholders’ Funds 91.0 108.6 117.3 122.8
Minority Interests - - - -
Total Liabilities/SHF 127.8 153.7 162.3 163.5
Cashflow
Operating Cash Received 45.2 53.9 59.9 60.1
Operating Cash Paid 34.5 38.5 41.1 41.8
Net Operating Cash Flow 10.7 15.3 18.8 18.4
less Earthquake Costs - - - -
less Asset Purchases 3.0 22.0 11.0 11.3
less Dividends Paid 2.2 3.0 3.7 4.1
Funding Surplus (Deficit) 5.5 (9.6) 4.1 3.0
Insurance Proceeds - - - -
Proceeds of Asset Sales 0.3 0.0 0.0 0.3
Increase in Net Debt (5.9) 9.6 (4.2) (3.3)
Equity Raised - - - -
Funding Provided (5.5) 9.6 (4.1) (3.0)
0
20
40
60
Income Statement – NPL
0
60
120
180
Balance Sheet – NPL
Port Taranaki - NPL
1995 1998 2001 2004 2007 2010 2013
Reported Profit TaxInterest DepreciationExpenses Revenues
1995 1998 2001 2004 2007 2010 2013
Liabilities (ex debt) DebtRevaluation Reserves SHF (ex revals)Total Assets
New Zealand ports and freight yearbook 2016 39
Port of Napier - NPEOverview NPE is New Zealand’s fourth largest container terminal by total TEUs. The port’s productive hinterland and outreach initiatives drive its throughput with key trades including agricultural produce and forestry.
Port Development
• Two Terex mobile harbour cranes.
• Commissioned an off-port empty container depot.
• Maintenance and capital dredging.
• A new main office.
• Purchased New Zealand’s first mobile harbour crane simulator.
• Established a new inland port freight hub in Palmerston North.
• Paved the main log yard (6.5 hectares).
Trade
• Container TEU: 256,438 (16.5% ) – helped by Maersk announcement in Oct 2014 that NPE to be included in Northern Star rotation and the transition of pulp from breakbulk into containers, despite dairy volumes being redirected by Kotahi/Fonterra.
• Total Volume: 4.07m (0.7% ).
• Log Volume: 1.11m tonnes (14.2% ).
• Bulk Cargo: 2.2m tonnes (8.3% ).
Performance
• Revenues: $72.1m (7.6% ).
• Operating Expenses: $42.3m (10.7% ).
• Net Profit After Tax: $12.9m (3.7% ) – impacted by increases in employee expenses and financing expenses.
• Gearing Ratio: 31.1%.
PORT OF NAPIER – NPE
Income Statement FY12 FY13 FY14 FY15
Revenue 60.3 62.1 67.0 72.1
Revenue Port Operations 60.3 62.1 67.0 72.0
Operating Expenses 34.1 35.5 38.2 42.3
Gross Profit 26.2 26.6 28.8 29.7
Associate/JV Earnings - - - -
One Offs / Other Items (0.8) 0.4 0.5 -
EBITDA 25.4 27.0 29.3 29.7
Depreciation & Amortisation 6.3 7.3 7.2 7.6
EBIT 19.2 19.7 22.1 22.2
Net Interest Expense 3.9 3.4 3.6 4.2
Taxation 4.2 4.5 5.0 5.1
NPAT 11.1 11.8 13.4 12.9
Other Comprehensive Income 61.3 2.0 (0.1) (2.2)
Comprehensive Income 72.4 13.9 13.3 10.7
JUNE BALANCE DATE
Balance Sheet FY12 FY13 FY14 FY15
Current Assets 6.6 7.4 6.6 8.1
Fixed Assets 235.2 248.9 260.0 288.7
Intangibles 0.4 0.3 0.9 1.2
Deferred Tax Benefit - - - -
Investments 6.3 6.7 7.2 2.9
Other Assets - 0.6 0.3 0.7
Total Assets 248.5 263.8 275.1 301.5
Current Liabilities 7.8 8.0 9.9 8.5
Debt 51.2 60.1 62.8 84.3
Other Non Current Liabilities 20.0 18.5 18.9 21.8
Shareholders’ Funds 169.5 177.3 183.6 186.9
Minority Interests - - - -
Total Liabilities/SHF 248.5 263.8 275.1 301.5
Cashflow
Operating Cash Received 63.1 62.0 68.9 73.3
Operating Cash Paid 45.3 43.9 45.5 52.4
Net Operating Cash Flow 17.8 18.1 23.4 20.9
less Earthquake Costs - - - -
less Asset Purchases 9.5 20.9 19.2 35.1
less Dividends Paid 5.9 6.1 7.0 7.4
Funding Surplus (Deficit) 2.5 (8.9) (2.9) (21.6)
Insurance Proceeds - - - -
Proceeds of Asset Sales 1.7 - 0.2 0.1
Increase in Net Debt (4.2) 8.9 2.6 21.5
Equity Raised - - - -
Funding Provided (2.5) 8.9 2.9 21.6
0
30
60
90
0
100
200
300
Port of Napier - NPE
Income Statement – NPE
Balance Sheet – NPE
1995 1998 2001 2004 2007 2010 2013
Reported Profit TaxInterest DepreciationExpenses Revenues
1995 1998 2001 2004 2007 2010 2013
Liabilities (ex debt) DebtRevaluation Reserves SHF (ex revals)Total Assets
40
Centreport - WLGOverview WLG services a diversified cargo base spanning containers, bulk trades (oil, logs), cruise, and interisland ferries. This activity is supplemented with other on-port services including cold storage, vanning / devanning (CentrePac – joint venture with international logistics provider Linfox) and an empty container depot (TSL). Development of Harbour Quays commercial property precinct has expanded WLG’s earnings, with three commercial buildings now structured within a 50:50 joint venture with ACC.
Port Development
• Plans to deepen the shipping channel progressed during the year, with the maximum ship draught of 14.5 metres proposed (currently 11.5 metres), allowing WLG to receive ships carrying up to 8,000 TEU (current 4,500 TEU). Planning is progressing through the consenting process.
• Other developments include completion of the $6.7m rebuild of the seawall damaged by the 2013 Seddon earthquake, upgrade of ferry facilities and a log distribution centre under development near Masterton.
• Continuing investment in logistics activity with KiwiRail.
Trade
• Container TEU: 107,407 (13% ) – *Record high* attributed to continued success of CentreRail initiative and inland rail container terminal with Ali Arc Logistics in Whanganui.
• Log Trade: 875,000 JAS cubic meters (8% ).
• Improvements in cruise ship market (more than 140,000 visitors brought to Wellington via 77 ships).
Performance
• Revenues: $69.8m (5.9% ).
• Expenses: $48.0m (8.4% ).
• Net Profit After Tax: $14.0m, a return to profit after earthquake impacted FY14 results.
• Gearing Ratio: 33.6%.
CENTREPORT – WLG
Income Statement FY12 FY13 FY14 FY15
Revenue 58.7 57.2 65.9 69.8
Revenue Port Operations 52.2 52.1 60.8 64.4
Operating Expenses 36.5 38.1 44.3 48.0
Gross Profit 22.2 19.1 21.6 21.8
Associate/JV Earnings 5.8 10.3 1.8 7.6
One Offs / Other Items (19.2) 4.9 (8.5) (1.3)
EBITDA 8.9 34.2 14.9 28.1
Depreciation & Amortisation 6.2 6.3 6.5 6.5
EBIT 2.7 28.0 8.4 21.6
Net Interest Expense 7.6 7.6 8.2 8.2
Taxation 1.5 2.2 2.1 (0.7)
NPAT (6.3) 18.2 (1.9) 14.0
Other Comprehensive Income 0.4 (1.9) (2.6) (0.4)
Comprehensive Income (6.0) 16.3 (4.5) 13.7
JUNE BALANCE DATE
Balance Sheet FY12 FY13 FY14 FY15
Current Assets 7.4 6.4 10.8 8.9
Fixed Assets 182.4 185.7 182.7 180.7
Intangibles 0.4 0.4 2.9 3.1
Deferred Tax Benefit 1.7 - - -
Investments 134.9 143.1 133.3 134.1
Other Assets - - - -
Total Assets 326.8 335.5 329.8 326.7
Current Liabilities 15.0 12.5 11.1 8.9
Debt 105.3 110.8 114.8 103.0
Other Non Current Liabilities 15.3 11.4 8.7 12.8
Shareholders’ Funds 191.2 200.9 195.2 202.0
Minority Interests - - - -
Total Liabilities/SHF 326.8 335.5 329.8 326.7
Cashflow
Operating Cash Received 65.0 64.3 68.6 74.3
Operating Cash Paid 48.2 48.9 54.3 57.0
Net Operating Cash Flow 16.8 15.4 14.3 17.3
less Earthquake Costs - - - -
less Asset Purchases 11.0 15.7 12.8 11.2
less Dividends Paid 5.0 5.4 3.5 6.9
Funding Surplus (Deficit) 0.9 (5.6) (2.1) (0.8)
Insurance Proceeds - - - -
Proceeds of Asset Sales 75.1 0.0 0.0 11.5
Increase in Net Debt (76.0) 5.6 2.1 (10.7)
Equity Raised - - - -
Funding Provided (0.9) 5.6 2.1 0.8
0
30
60
90
0
150
300
450
Centreport - WLG
Income Statement – WLG
Balance Sheet – WLG
1995 1998 2001 2004 2007 2010 2013
Reported Profit TaxInterest DepreciationExpenses Revenues
1995 1998 2001 2004 2007 2010 2013
Liabilities (ex debt) DebtRevaluation Reserves SHF (ex revals)Total Assets
New Zealand ports and freight yearbook 2016 41
Port Nelson - NSNOverviewNSN occupies a sheltered corner of New Zealand, secured by a productive hinterland, topographical isolation, and the absence of a rail link. It owns a portfolio of properties within the Port area, with ongoing demand for industrial development. The port is heavily focused on export of the regions primary production, with key trades being wine, fish, fruit and forestry. Reflecting limited import demand, most import containers are empty. While its key trades are international exports, Nelson records a high level of transhipments.
Port Development
• NSN’s capital expenditure has largely been limited to maintaining existing operations through equipment replacements and rebuilds of container sections.
• In 2015 NSN purchased additional forklifts. Invested in ICT systems and upgraded internal radio capacity.
• NSN’s property portfolio has had more activity, with 2015 seeing various demolitions and the purchase of a nearby site. There is potential for a number of significant property developments in 2016 as cargo storage areas are consolidated.
Trade
• Cargo Volumes: 2.6m tonnes (steady).
• Container TEU: 90,422 in 2015 (3.4% ).
• Log Exports: 569,000 tonnes (10.1% ) – due to softening log market in China.
• Fall in log exports offset by above expected motor vehicle import volumes and general import & export volumes being ahead of budget.
Performance
• Revenues: $42.2m (2.5%).
• Expenses: $24.7m (0.0% = ).
• Net Profit After Tax: $7.5m (1.3% ).
• Gearing Ratio: 12.6%.
Port Nelson – NSN
Income Statement FY12 FY13 FY14 FY15
Revenue 38.8 38.5 43.3 42.2
Revenue Port Operations 32.8 32.4 36.8 36.3
Operating Expenses 21.5 22.1 24.6 24.7
Gross Profit 17.3 16.5 18.7 17.5
Associate/JV Earnings 2.2 0.6 (0.2) (0.1)
One Offs / Other Items (0.4) (0.1) (0.1) (0.1)
EBITDA 19.1 16.9 18.4 17.3
Depreciation & Amortisation 4.7 4.8 5.5 5.2
EBIT 14.4 12.1 13.0 12.2
Net Interest Expense 2.5 2.5 2.2 1.8
Taxation 1.6 2.5 3.3 2.9
NPAT 10.4 7.1 7.6 7.5
Other Comprehensive Income (1.0) 6.6 0.3 (1.0)
Comprehensive Income 9.3 13.6 7.9 6.5
JUNE BALANCE DATE
Balance Sheet FY12 FY13 FY14 FY15
Current Assets 5.3 6.0 7.9 7.1
Fixed Assets 169.6 176.0 169.0 164.6
Intangibles 0.7 0.7 0.5 0.4
Deferred Tax Benefit - - - -
Investments 16.0 14.4 12.9 15.0
Other Assets - 0.1 0.2 0.1
Total Assets 191.7 197.2 190.5 187.1
Current Liabilities 7.9 8.3 7.8 9.2
Debt 39.9 35.4 27.0 22.1
Other Non Current Liabilities 9.9 10.2 8.7 8.1
Shareholders’ Funds 133.9 143.3 147.0 147.8
Minority Interests - - - -
Total Liabilities/SHF 191.7 197.2 190.5 187.1
Cashflow
Operating Cash Received 38.4 38.6 42.9 40.9
Operating Cash Paid 26.6 27.7 29.0 29.7
Net Operating Cash Flow 11.8 11.0 13.9 11.2
less Earthquake Costs - - - -
less Asset Purchases 3.3 4.7 2.0 3.6
less Dividends Paid 12.2 4.2 5.2 4.7
Funding Surplus (Deficit) (3.7) 2.1 6.7 2.9
Insurance Proceeds - - - -
Proceeds of Asset Sales 2.6 3.2 3.3 0.5
Increase in Net Debt 1.2 (5.3) (10.0) (3.4)
Equity Raised - - - -
Funding Provided 3.7 (2.1) (6.7) (2.9)
0
20
40
60
0
100
200
300
Port Nelson - NSN
Income Statement – NSN
Balance Sheet – NSN
1995 1998 2001 2004 2007 2010 2013
Reported Profit TaxInterest DepreciationExpenses Revenues
1995 1998 2001 2004 2007 2010 2013
Liabilities (ex debt) DebtRevaluation Reserves SHF (ex revals)Total Assets
42
Port Marlborough – MLBOverviewMLB remains one of New Zealand’s most diverse port companies, spanning property, inter-island ferries, general wharves, a deep water bulk terminal, marinas, and aquaculture. Notably, MLB does not have a container terminal. The port’s primary trade is log exports which represent over 93% of all cargo handled in FY15.
Port Development
• Investment has been made by MLB through the development of port infrastructure.
• New commercial vehicle and freight marshalling facilities were developed to support the new Strait Shipping vessel and Waitohi wharf was upgraded.
• Scheduled half-life berth maintenance at Waikawa has started.
• Scoping is underway for future investment to support the Interislander Cook Straight ferries.
Trade
• Ferries: 3,573 (7.4% ).
• Log Volumes: 708,139 JAS cubic metres (13.1% ).
• Cement Volumes: 6,245 tonnes (29.4% ).
• Fish Volumes: 13,303 tonnes (32.6% ).
• Other Cargoes Volumes: 32,638 tonnes (30.2% ).
• Average Marina Berth: 2% ().
Performance
• Revenues - Port Installations and Services: $15.1m (10.2% ).
• Revenues - Investment Properties: $8.6m (6.2% ).
• Revenues - Marine Farm Facilities:$0.71m (6% ).
• Operating Expenses: $13.0m (8.3% ).
• Net Profit After Tax: $5.2m (7.1% ) – due to $1.1m derivatives loss.
• Gearing Ratio: 22.8%.
Port Marlborough – MLB
Income Statement FY12 FY13 FY14 FY15
Revenue 19.4 21.4 22.5 24.5
Revenue Port Operations 12.1 13.6 14.3 15.8
Operating Expenses 10.8 11.8 12.0 13.0
Gross Profit 8.6 9.6 10.5 11.4
Associate/JV Earnings - - - -
One Offs / Other Items 0.2 (0.0) 0.0 0.4
EBITDA 8.8 9.6 10.5 11.8
Depreciation & Amortisation 1.8 1.9 2.1 2.3
EBIT 7.0 7.7 8.4 9.5
Net Interest Expense 2.4 0.9 1.2 2.9
Taxation 1.2 1.2 1.6 1.4
NPAT 3.4 5.6 5.6 5.2
Other Comprehensive Income - 7.1 - -
Comprehensive Income 3.4 12.7 5.6 5.2
JUNE BALANCE DATE
Balance Sheet FY12 FY13 FY14 FY15
Current Assets 2.9 3.1 4.0 4.4
Fixed Assets 55.1 65.3 64.9 65.4
Intangibles 0.0 0.0 0.9 0.8
Deferred Tax Benefit - - - -
Investments 61.6 69.4 74.0 75.8
Other Assets - - - -
Total Assets 119.6 137.8 143.8 146.4
Current Liabilities 2.9 3.4 3.1 3.7
Debt 26.0 30.7 33.5 31.5
Other Non Current Liabilities 7.2 9.1 8.8 9.7
Shareholders’ Funds 83.6 94.6 98.5 101.6
Minority Interests - - - -
Total Liabilities/SHF 119.6 137.8 143.8 146.4
Cashflow
Operating Cash Received 19.2 21.3 22.5 24.2
Operating Cash Paid 14.4 14.6 15.9 16.2
Net Operating Cash Flow 4.8 6.8 6.6 8.0
less Earthquake Costs - - - -
less Asset Purchases 7.8 9.7 6.8 3.8
less Dividends Paid 1.9 1.7 1.8 2.1
Funding Surplus (Deficit) (5.0) (4.6) (2.0) 2.2
Insurance Proceeds - - - -
Proceeds of Asset Sales - 0.0 - 0.0
Increase in Net Debt 5.0 4.6 2.0 (2.2)
Equity Raised - - - -
Funding Provided 5.0 4.6 2.0 (2.2)
0
10
20
30
0
60
120
180
Port Marlborough – MLB
Income Statement – MLB
Balance Sheet – MLB
1995 1998 2001 2004 2007 2010 2013
Reported Profit TaxInterest DepreciationExpenses Revenues
1995 1998 2001 2004 2007 2010 2013
Liabilities (ex debt) DebtRevaluation Reserves SHF (ex revals)Total Assets
New Zealand ports and freight yearbook 2016 43
Lyttelton Port of Christchurch - LYTOverviewLYT is positioned as the South Island gateway port, facilitating bulk trades, vehicle imports, and containerised trade. Key facilities include the Cashin Quay container terminal, specialist liquid, bulk and vehicle terminals, and a coal export facility. The CityDepot inland port in Woolston offers off-port warehousing and container park services.
Port Development
• Cashin Quay 2 rebuild recommissioned in February 2016, doubling LYT’s container capacity.
• Te Awaparahi Bay reclamation reaches 9ha (of 10ha consented).
• The Minister for Canterbury Earthquake Recovery approved the Lyttelton Port Recovery Plan (LPRP) in November 2015.
• The LPRP provides for the redevelopment of Dampier Bay and the repair, rebuild and reconfiguration of LYT, as well as establishes how transport issues and construction effects will be managed.
• Development focus on increasing the depth of berths and the draught navigation channel, increasing container terminal capacity and reconfiguring inner harbour operations.
Trade
• Container TEU: 367,144 (2.5%) – loss of the Fonterra Clandeboye volume to Timaru.
• Log Exports: 543,814 (9.6% ).
• Bulk Fuel Volumes: 1.027m tonnes (1.6% ).
• Coal Exports: 1.64m tonnes (20.8% ) – in line with expectations.
• Motor Vehicle Imports: 47,858 units (17.4% ).
• Dry Bulk Imports: 772,835 tonnes (0.5% ).
Performance
• Revenues: $109m (6% ).
• Operating Expenses: $79.4m (4.2% ).
• Earnings From Operating Activities Before Earthquake-Related Items: $17.3m (21% ).
• Net Profit After Tax: $20.6m (94% ).
• Gearing Ratio: no debt.
Lyttelton Port of Christchurch – LYT
Income Statement FY12 FY13 FY14 FY15
Revenue 104.5 110.7 115.8 109.1
Revenue Port Operations 104.5 110.7 115.8 109.1
Operating Expenses 69.8 75.0 82.9 79.4
Gross Profit 34.7 35.7 33.0 29.6
Associate/JV Earnings - - - -
One Offs / Other Items 3.2 3.4 336.8 -
EBITDA 37.9 39.1 369.8 29.6
Depreciation & Amortisation 10.9 10.9 11.0 12.4
EBIT 27.0 28.2 358.7 17.3
Net Interest Expense 3.6 3.6 (3.2) (12.2)
Taxation 6.2 7.7 18.7 8.9
NPAT 17.2 16.9 343.2 20.6
Other Comprehensive Income (0.4) 1.2 0.7 0.2
Comprehensive Income 16.8 18.1 343.9 20.8
JUNE BALANCE DATE
Balance Sheet FY12 FY13 FY14 FY15
Current Assets 52.6 51.1 343.9 210.6
Fixed Assets 216.9 215.2 248.9 327.9
Intangibles 3.5 3.9 4.2 10.8
Deferred Tax Benefit - - - -
Investments - - - 40.0
Other Assets 0.6 0.5 0.4 0.2
Total Assets 273.5 270.7 597.5 589.5
Current Liabilities 19.8 19.7 28.0 23.8
Debt 55.9 30.6 - -
Other Non Current Liabilities 25.8 30.3 36.4 34.0
Shareholders’ Funds 172.0 190.1 533.1 531.7
Minority Interests - - - -
Total Liabilities/SHF 273.5 270.7 597.5 589.5
Cashflow
Operating Cash Received 102.0 109.2 118.3 118.3
Operating Cash Paid 75.3 81.1 91.6 93.9
Net Operating Cash Flow 26.6 28.1 26.6 24.4
less Earthquake Costs 15.2 8.0 15.1 -
less Asset Purchases 26.2 12.3 43.2 98.0
less Dividends Paid - - 2.0 22.2
Funding Surplus (Deficit) (14.8) 7.7 (33.7) (95.8)
Insurance Proceeds - 17.4 385.3 -
Proceeds of Asset Sales 0.1 0.0 0.1 0.1
Increase in Net Debt 14.7 (25.2) (351.7) 95.7
Equity Raised - - - -
Funding Provided 14.8 (7.7) 33.7 95.8
0
200
400
0
200
400
600
800
Lyttelton Port of Christchurch - LYT
Income Statement – LYT
Balance Sheet – LYT
1995 1998 2001 2004 2007 2010 2013
Reported Profit TaxInterest DepreciationExpenses Revenues
1995 1998 2001 2004 2007 2010 2013
Liabilities (ex debt) DebtRevaluation Reserves SHF (ex revals)Total Assets
44
PrimePort Timaru - TIUOverviewTIU is owned 50:50 by the Timaru District Council and Port of Tauranga. TRG acquired its stake for $21.6m following closure of the port’s container terminal in 2012 to implement a hub and spoke model. The sale included a 35 year lease of the Timaru Container Terminal (TCT). The port services a range of regional primary industries including meat, fish, grain, and forestry exports, as well as imports of fertiliser, stock feed and petroleum.
Port Development
• Rebuilding the No. 2 wharf to handle vessels associated with the new Holcim cement storage dome and loading facilities. The Holcim project will add 350,000 tonnes of cement cargo p.a. for the port.
• TRG is also investing in growth at TCT with the purchase of an additional mobile harbour crane which is expected to be fully functional in FY16.
• Transhipment of TIU exports via TRG has not yet eventuated.
Trade
• Container TEU: 70,354 TEU (250% ).
• Gross Registered Vessel Tonnage: 6.4m (31% ).
• Total Bulk Cargo: 2% ().
• Vehicles: 18% ().
Performance
• Revenues: $15.4m (2.5% ).
• Revenues – Port Operations: $13.1m (3.6% ).
• Operating Expenses: $10.4m (18.8% ).
• Net Profit After Tax: $3.2m (67% ).
• Gearing Ratio: 11.8%.
PrimePort Timaru – TIU
Income Statement FY12 FY13 FY14 FY15
Revenue 19.2 15.8 15.8 15.4
Revenue Port Operations 16.3 12.7 12.6 13.1
Operating Expenses 15.3 12.7 12.8 10.4
Gross Profit 3.9 3.1 2.9 4.9
Associate/JV Earnings - - - -
One Offs / Other Items (10.1) 1.0 0.2 0.3
EBITDA (6.3) 4.1 3.2 5.2
Depreciation & Amortisation 3.5 1.7 1.0 0.9
EBIT (9.8) 2.3 2.2 4.3
Net Interest Expense 0.3 0.1 (0.0) 0.0
Taxation (2.7) 0.6 0.3 1.1
NPAT (7.4) 1.7 1.9 3.2
Other Comprehensive Income (1.1) 0.4 0.6 0.8
Comprehensive Income (8.5) 2.0 2.5 4.0
JUNE BALANCE DATE
Balance Sheet FY12 FY13 FY14 FY15
Current Assets 4.3 3.4 6.8 4.4
Fixed Assets 32.5 33.1 31.8 32.9
Intangibles - - - -
Deferred Tax Benefit 1.9 1.3 1.9 1.5
Investments 24.4 25.3 3.3 3.5
Other Assets 0.3 0.6 0.6 13.1
Total Assets 63.4 63.7 44.3 55.4
Current Liabilities 2.7 1.9 2.2 2.4
Debt 1.0 - - 7.5
Other Non Current Liabilities - - - -
Shareholders’ Funds 59.7 61.8 42.2 45.5
Minority Interests - - - -
Total Liabilities/SHF 63.4 63.7 44.3 55.4
Cashflow
Operating Cash Received 19.1 16.2 15.5 15.0
Operating Cash Paid 15.0 13.6 13.6 11.1
Net Operating Cash Flow 4.1 2.5 1.9 3.8
less Earthquake Costs - - - -
less Asset Purchases 1.6 2.5 0.8 13.9
less Dividends Paid 0.5 - 12.6 0.6
Funding Surplus (Deficit) 2.0 0.1 (11.5) (10.6)
Insurance Proceeds - - - -
Proceeds of Asset Sales 0.3 0.1 24.1 0.1
Increase in Net Debt (2.3) (0.2) (3.2) 10.6
Equity Raised - - (9.5) -
Funding Provided (2.0) (0.1) 11.5 10.6
0
10
20
30
0
30
60
90
PrimePort Timaru - TIU
Income Statement – TIU
Balance Sheet – TIU
1995 1998 2001 2004 2007 2010 2013
Reported Profit TaxInterest DepreciationExpenses Revenues
1995 1998 2001 2004 2007 2010 2013
Liabilities (ex debt) DebtRevaluation Reserves SHF (ex revals)Total Assets
New Zealand ports and freight yearbook 2016 45
Port Otago - POEOverviewPOE operates two port areas, with Port Chalmers handling containers and bulk (largely forestry) cargoes, while the upper harbour Dunedin wharves handle lower draft vessels. The port’s catchment provides it with primary products for export from much of Otago and Southland, particularly dairy from Fonterra’s Edendale plant. POE has also built a significant $264m industrial property portfolio spanning Auckland, Hamilton and Dunedin.
Port Development
• $6.9m spent on capex during the year, including paving works in Dunedin and Port Chalmers, final payment on a new tug, and other plant replacements.
• The NextGeneration project, a two-year $30m plan comprising four separate projects, was finalised and commenced in the period. The projects include channel deepening, berth sheet piling and deepening, warehouse expansion, new tug and split-hopper barge.
Trade
• Container TEU: 172,800 (5% ).
• Log Exports: 840,000 tonnes (6% ) – making up 60% of total conventional tonnage.
Performance
• Revenue: $81.6m (4.7% ).
• Operating Expenses: $45.1m (0.4% ).
• Net Profit After Tax: $52.4m (64.8% ) – $24.7m contribution from sale of Lyttelton Port investment and $10.7 million increase in value of the investment property portfolio
• Gearing Ratio: 8.3%.
Port Otago – POE
Income Statement FY12 FY13 FY14 FY15
Revenue 70.1 78.0 77.9 81.6
Revenue Port Operations 57.6 65.3 63.3 62.9
Operating Expenses 40.5 44.1 43.8 45.1
Gross Profit 29.7 34.0 34.1 36.5
Associate/JV Earnings - 0.3 0.3 0.3
One Offs / Other Items (3.5) 19.8 16.2 34.6
EBITDA 26.2 54.0 50.6 71.5
Depreciation & Amortisation 7.6 7.4 7.7 8.7
EBIT 18.6 46.6 42.9 62.8
Net Interest Expense 5.6 5.4 5.6 4.2
Taxation 0.6 3.0 5.5 6.2
NPAT 12.4 38.1 31.8 52.4
Other Comprehensive Income (5.0) 15.9 5.8 (13.7)
Comprehensive Income 7.4 54.0 37.6 38.8
JUNE BALANCE DATE
Balance Sheet FY12 FY13 FY14 FY15
Current Assets 11.9 20.2 35.6 46.4
Fixed Assets 147.3 153.0 159.9 158.6
Intangibles 4.0 4.5 5.8 6.4
Deferred Tax Benefit - - - -
Investments 230.9 262.3 283.3 248.8
Other Assets 3.0 3.0 9.8 1.6
Total Assets 397.1 443.0 494.4 461.8
Current Liabilities 12.7 13.3 12.0 13.5
Debt 90.8 95.6 119.6 54.7
Other Non Current Liabilities 21.3 19.8 17.9 18.5
Shareholders’ Funds 272.3 314.3 344.8 375.2
Minority Interests - - - -
Total Liabilities/SHF 397.1 443.0 494.4 461.8
Cashflow
Operating Cash Received 71.8 76.5 77.9 82.6
Operating Cash Paid 54.2 55.4 57.2 53.9
Net Operating Cash Flow 17.6 21.1 20.6 28.8
less Earthquake Costs - - - -
less Asset Purchases 7.2 15.4 48.2 31.4
less Dividends Paid 11.8 12.0 7.1 8.4
Funding Surplus (Deficit) (1.4) (6.3) (34.7) (11.0)
Insurance Proceeds - - - -
Proceeds of Asset Sales 0.6 2.2 9.9 96.1
Increase in Net Debt 0.8 4.1 24.8 (85.1)
Equity Raised - - - -
Funding Provided 1.4 6.3 34.7 11.0
Port Otago - POE
0
40
80
120
0
100
200
300
400
500
600
Income Statement – POE
Balance Sheet – POE
1995 1998 2001 2004 2007 2010 2013
Reported Profit TaxInterest DepreciationExpenses Revenues
1995 1998 2001 2004 2007 2010 2013
Liabilities (ex debt) DebtRevaluation Reserves SHF (ex revals)Total Assets
46
Southport - BLUOverviewBLU is New Zealand’s southernmost commercial port. Operating from a 40ha man-made island in Bluff harbour serving a productive hinterland yielding dairy, forestry, fish and meat exports. BLU services imports of oil, fertiliser, and stock feed, as well as NZAS’s Aluminium Smelter (imports of alumina and exports of aluminium). BLU is listed on the NZX and is majority owned by the Southland Regional Council (66.48%).
Port Development
• A second Liebherr mobile crane and further container forklift successfully commissioned, at a cost of $6.3m.
• Plans for a $4.25m development of a 4,000m2 off-port container unpacking/packing facility in FY16.
Trade
• Cargo Volumes: 2.86m tonnes (5% ).
• Container TEU: 35,800 (9.5% ).
• Stock Food & Molasses Imports: 220,000 tonnes – *Record high*.
Performance
• Revenue – Port & Warehousing: $34.6m (11% ).
• Operating Expenses: $20.2m (5.8% ) includes Admin expenses.
• Net Profit After Tax: $7.7m (16% ).
• Gearing Ratio: 15.4%.
• Net Operating Profit: $24m ($3m ).
• Net Interest Expense: $4.2m ($1.4m ) – due to a reduction in borrowing.
• Depreciation: $8.7m ($1m ).
Southport – BLU
Income Statement FY12 FY13 FY14 FY15
Revenue 26.0 29.3 31.3 34.6
Revenue Port Operations 26.0 29.3 31.3 34.6
Operating Expenses 15.3 17.5 19.1 20.2
Gross Profit 10.7 11.8 12.2 14.4
Associate/JV Earnings - - - -
One Offs / Other Items 0.4 0.0 0.0 0.0
EBITDA 11.1 11.9 12.2 14.4
Depreciation & Amortisation 2.4 2.6 2.5 2.7
EBIT 8.7 9.3 9.7 11.7
Net Interest Expense 0.4 0.3 0.4 0.9
Taxation 2.4 2.5 2.7 3.0
NPAT 6.0 6.5 6.7 7.7
Other Comprehensive Income 0.0 0.0 (0.2) 0.2
Comprehensive Income 6.0 6.5 6.5 7.9
JUNE BALANCE DATE
Balance Sheet FY12 FY13 FY14 FY15
Current Assets 5.0 5.5 11.0 6.5
Fixed Assets 29.8 35.8 34.7 40.6
Intangibles - - - -
Deferred Tax Benefit - - - -
Investments 0.0 0.0 - -
Other Assets - - - -
Total Assets 34.8 41.3 45.7 47.2
Current Liabilities 3.3 4.0 3.6 5.1
Debt 1.2 6.2 10.3 8.2
Other Non Current Liabilities 0.8 0.5 0.4 0.6
Shareholders’ Funds 29.6 30.6 31.4 33.3
Minority Interests - - - -
Total Liabilities/SHF 34.8 41.3 45.7 47.2
Cashflow
Operating Cash Received 25.0 29.4 30.9 34.8
Operating Cash Paid 18.3 20.5 22.1 22.8
Net Operating Cash Flow 6.7 8.9 8.8 12.0
less Earthquake Costs - - - -
less Asset Purchases 3.1 8.1 3.4 6.7
less Dividends Paid 5.2 5.5 5.6 6.0
Funding Surplus (Deficit) (1.7) (4.7) (0.3) (0.7)
Insurance Proceeds - - - -
Proceeds of Asset Sales 1.3 0.0 0.1 0.0
Increase in Net Debt 0.3 4.6 0.2 0.7
Equity Raised - - - -
Funding Provided 1.7 4.7 0.3 0.7
Southport - BLU
0
30
60
90
1995 1998 2001 2004 2007 2010 2013
0
30
60
90
1995 1998 2001 2004 2007 2010 2013
Income Statement – BLU
Balance Sheet – BLU
Reported Profit TaxInterest DepreciationExpenses Revenues
Liabilities (ex debt) DebtRevaluation Reserves SHF (ex revals)Total Assets
New Zealand ports and freight yearbook 2016 47
Marsden Maritime Holdings - MMH Eastland Port – EST
OverviewMMH (formerly Northland Port Corporation) is an NZX-listed company, with its largest investment being a 50% stake in Northport (NTH) (with TRG also holding 50%). MMH’s portfolio interests currently include a 50% interest in NTH, 50% interest in North Tugz, 180ha of industrial zoned land, and the Marsden Cove Marina.
Port Development
NTH investment activities include:
• Purchase of first mobile harbour crane to allow the port to handle containers.
• Civil works to raise low-lying future cargo storage areas out of the water table.
• Upgrading of the harbour traffic management system.
• Detailed study of the Northland forestry industry which reported production at near the sustainable limit of capacity.
Trade
• Cargo Volumes: 3.2m tonnes (3.1% ).
• Log Exports: 2.5m tonnes (steady).
Performance
• Revenue: $36.8m (3.9% ).
• Net Profit After Tax: $16.3m ($0.4m ).
OverviewEastland Group is wholly owned by Eastland Community Trust (ECT) and has interests in key infrastructure of the Tairāwhiti region. These comprise Eastland Logistics (Eastland Port and Eastland Airport), Eastland Electricity (lines network), Eastland Generation, and Eastland Investment Properties. EST is located at the mouth of the Taruheru River in the city of Gisborne. EST is solely an export port.
Port Development
• $11m upper log yard expansion project, which includes. installation of a storm water treatment system and construction of a perimeter earth wall.
• A more powerful tug was purchased during the year, representing a $12m investment.
• Work is currently underway to expand the current Matawhero log yard site by an additional 2.8ha.
• Eastland Group plans on investing a further $57.6m over the next five years, on top of the $50m spent since 2003 on capital enhancements.
Trade
• Cargo Volumes: 2.26m tonnes (0.4% ).
• Log Exports: 2.22m tonnes (steady) – Log harvests expected to reach 3.5m tonnes in the next few years, a significant increase from 350,000 tonnes in 2005.
Performance
Not available for port performance only.
48
New Zealand ports and freight yearbook 2016 49
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New Zealand ports and freight yearbook 2016 51
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