Profits and volumes drop at Napier Port 

Napier Port has revealed decreased income as exports from the district were impacted by Cyclone Gabrielle. 

“Off the back of a buoyant first half, we anticipated Cyclone Gabrielle would reduce third-quarter export volumes and earnings. However, adverse weather in June and July that limited access to our wharves represented a further challenge to our nine months result,” said Napier Port chief executive, Todd Dawson. 

The organisation said net benefit after the tax for the nine months finished June fell 19.5 percent to $12.9 million, from $16m in a similar period a year prior. 

“The lasting effects of the cyclone on cargo volumes are expected to persist into the fourth quarter, but our confidence of a step-up in cargo in the new financial year is growing given the progress of the recovery efforts we are seeing in the region,” Dawson added. 

Income for the period rose 5.7 percent to $90m, while fundamental benefit fell by in excess of a third to $9.3m because of expanded depreciation and money costs following the completion of its Te Whiti wharf. 

Napier Port likewise perceived $3.5m of insurance continues connected with claims from Cyclone Gabrielle during the second from last quarter. 

“Prudent financial management focused on the recovery of rising costs, our investments in capacity and new services coupled with our continuing focus on efficiency, value and customer service means we are well positioned to reap the benefits of the expected ramp up in volumes,” Dawson said. 

Bulk freight volumes for the period were 2.3 m tons, compared with 2.7 m tons a year prior. Log trade volumes for the period fell by 16.1 percent to 1.8 m tons, because of adverse climate, damaged streets and weak interest, the port said. 

The port said it was strategically set up for a recovery in freight volumes in the new financial year.