Napier Port credits log exports for improved results – Napier Port’s revenue for the year to 30 September 2021 rose 9% to a record $109.5 million from $100.4 million in the same period a year ago, driven by increases in bulk cargo volumes and record log exports in particular.
Napier Port, which is a key gateway for central and lower North Island freight, achieved the record despite the challenges from global container shipping disruptions and the absence of cruise ship visits to the region.
Bulk cargo revenue rose 32.7% to $41.5 million from $31.3 million principally due to higher log volumes, which increased 27.6% to a record 3.02 million tonnes. Average revenue per tonne improved due to tariff increases, one off cost recoveries, and an improved cargo mix.
Container services revenue increased by 4.8% to $65.3 million from $62.3 million, thanks to a 2.9% increase in container volumes to 276k TEU and improved average revenue per TEU.
Napier Port’s result from operating activities rose 6.4% to $43.8 million from $41.2 million, with the unwinding of the protective cost saving measures introduced at the start of the pandemic in 2020 and ongoing investment in capability to drive growth, together with costs associated with increased activity, partially offsetting the impact of revenue growth.
Napier Port also invested to improve services to customers including work to deploy an on-port log debarker, which will allow the company to cease on-port log fumigation.
Outlook – In the annual report Chair Alasdair MacLeod said: “Our base-case volume forecast for log exports in FY2022 is in-line with FY2021. We have been a beneficiary of buoyant log export markets for the past year, but we are not complacent about thepotential for a cooling in these favourable conditions to impact volumes through Napier Port.