Ports of Auckland have announced a 70 percent increase in half-year profit.
The Ports of Auckland have announced a 70 percent increase in half year profit as a result of rising productivity.
Ports of Auckland CEO, Tony Gibson puts the massive increase down to a restructuring plan that began as a reaction to massive setbacks in 2011.
The year saw Ports of Auckland disrupted by industrial action, the withdrawal of Maersk, and Fonterra’s decision to move trade to the Port of Tauranga.
As such the company underwent a massive reorganisation plan that included improved container handling and use of technology, lifted labour utilisation and the introduction of a flexible shift/rota system that 60 percent of the ports stevedores now follow.
Speaking to the New Zealand Herald, Gibson said that they “entered 2011 with a plan to change the organisation.
“We wanted to redefine what the company looked like and to improve our processes, our technical platforms and to deliver better productivity.”
Such reinvention seems to have been successful, with unaudited net profit after tax (NPAT) increasing 70 percent for six months ending on 31 December 3013 – a total NZ$26.4 million compared to $15.5 million in the same period of last year.
Freight volumes lifted across the board, with a record number of containers being handled; 476,333 TEU, an increase of 15.1 percent in comparison to 413,884 TEU in 2012.
Break-bulk cargo volumes increased by 41.9 percent, handling 2.87 million tonnes compared to the 2.02 million handled previously.
With such success comes the prospect of future growth, with Gibson saying: “Looking ahead, we are focussing on developing our leaders, increasing opportunities for women, particularly in operational and management roles, and investing in the training required to prepare our people for the future.”
According to the Herald, the next phase of the port’s development will involve implementing a new terminal management system in July this year.
This will include the use of optical container recognition technology that will identify each container at the port’s gate, at crane level.
Further highlights of Ports of Auckland’s profit include:
• An interim dividend of $20.94m to be paid to Auckland Council investments ltd. This compares to a dividend of $11.56m for the same period last year.
• Port Operations EBIT was up 47.1% to $40.4m for the six months
• Full import containers were 19.9% higher and full exports 12.9% higher than the same period last year.
• Car numbers were up 29.3% to 99,710 units, from 77,122 units in the same period last year.
• Port operating costs excluding depreciation were up 4.6% to $56.8m.