19 Feb 2015

Port of Tauranga posts flat first-half profit

1:42 pm on 19 February 2015

Port of Tauranga has reported a flat first-half net profit, as a big drop in log volumes offset growth in container volumes and dairy and meat exports.

The country's largest port has reported a net profit of $42.6 million, boosted by a near $5 million gain from selling half the Timaru container terminal to Kotahi, a freight company owned by Fonterra and Silver Fern Farms.

Port of Tauranga and Kotahi formed a 10 year alliance in June last year and now they're forming a joint venture named Coda, pooling their existing logistics operations from the beginning of May.

Kotahi's chief executive Chris Greenough said forming Coda is the next step in preparing for the introduction of larger ships to New Zealand and will boost the efficiency of the supply chain, remove wasted capacity and reduce costs.

Port of Tauranga's chief executive Mark Cairns said Coda would support growth in container volumes through the port.

The port said the Kotahi alliance has already increased freight volumes and it sees many new opportunities emerging, including through its new South Island operations.

On the strength of that, the port raised its first-half dividend by nearly 5 percent to 22 cents a share.

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