NZ port Timaru profit down to $466,470 this year
Port Timaru's after-tax profit plummeted $742,820 to $466,470 this year after container numbers dropped by 27 per cent, reported Timaru Herald.
Chief executive Jeremy Boys quick to point out the operating profit of $1.1 million had been significantly reduced by restructuring, tax changes and depreciation, but overall debt had been reduced from $6.63 million to $4.05 million.
The port was hit hard by Fonterra's decision to move most of its Clandeboye dairy cargo out of Lyttelton, which saw container numbers drop to 44,800 from 60,100 the previous year.
The resulting restructuring last year saw five employees lose their jobs and the remaining operational staff placed on flexible part-time contracts. Redundancy payments cost $382,461.
Chairman Sid McAuley said the year had brought challenges.
"The need to restructure staff a second time in two years was also a difficult course. However, the operational staff accepted a new and flexible agreement that has allowed almost all to retain work, but on reduced hours."
Port operational revenue decreased from $14.81 million for the previous year to $13.4 million in the year to June and ship numbers to the port dropped from 389 to 327. In 2008-09, more than 3.5 million gross registered tonnes crossed the port, dropping to 3.2 million in the past year.
Significantly log volumes increased by 75 per cent, offset by a 72 per cent decrease in palm kernel demand.
McAuley said Timaru had raised concerns for some time about creating infrastructure dependencies for all South Island trade if it is only channelled through Lyttelton.
"The earthquake has had terrible consequences for many people in Canterbury but it should create debate about putting so many export eggs in one port basket.
"This applies not only to containers but to many trades, such as fuel where storage is being cut out in the regions."
Chief executive Jeremy Boys quick to point out the operating profit of $1.1 million had been significantly reduced by restructuring, tax changes and depreciation, but overall debt had been reduced from $6.63 million to $4.05 million.
The port was hit hard by Fonterra's decision to move most of its Clandeboye dairy cargo out of Lyttelton, which saw container numbers drop to 44,800 from 60,100 the previous year.
The resulting restructuring last year saw five employees lose their jobs and the remaining operational staff placed on flexible part-time contracts. Redundancy payments cost $382,461.
Chairman Sid McAuley said the year had brought challenges.
"The need to restructure staff a second time in two years was also a difficult course. However, the operational staff accepted a new and flexible agreement that has allowed almost all to retain work, but on reduced hours."
Port operational revenue decreased from $14.81 million for the previous year to $13.4 million in the year to June and ship numbers to the port dropped from 389 to 327. In 2008-09, more than 3.5 million gross registered tonnes crossed the port, dropping to 3.2 million in the past year.
Significantly log volumes increased by 75 per cent, offset by a 72 per cent decrease in palm kernel demand.
McAuley said Timaru had raised concerns for some time about creating infrastructure dependencies for all South Island trade if it is only channelled through Lyttelton.
"The earthquake has had terrible consequences for many people in Canterbury but it should create debate about putting so many export eggs in one port basket.
"This applies not only to containers but to many trades, such as fuel where storage is being cut out in the regions."
