Logs, refrigerated cargoes, apples and the dairy sector supplied multiple boosts to Port Otago, with container trade up 13% and conventional cargo tonnage across its wharves remaining at 1.3 million tonnes.
The $12 million dividend, of $7 million ordinary and $5 million special dividends, follows $11.75 million last year and $12.25 the year before - both results included boosts from special dividends. The ORC has received more than $126 million in dividends from Port Otago since 1990.
In presenting Port Otago's annual report to the ORC yesterday, chairman Dave Faulkner said the port had achieved an ''outstanding'' result, including record log volumes at 720,000 tonnes, a 13% increase to 195,000 of TEUs (20-foot equivalent container units) and the group's $14.6 million after-tax profit.
''On a global basis, competition between shipping lines is intense, with every opportunity to reduce costs being taken,'' Mr Faulkner said.
He highlighted exports of refrigerated TEUs, containing meat, fish, apples, cheese and butter products was up 30%.
''Logging is in one of its most continuous up booms, because of demand from overseas,'' Mr Faulkner said.
He was pleased with the completion of several projects, including the $2.9 million oil wharf upgrade, replacement of the crane rail on the wharf for $1.8 million and opening of the $5 million 40,000sq m warehouse in Sawyers Bay, at present 100% used for the dairy industry. The site still has space for another 4000sq m shed.
Also as part of readying for bigger ships by dredging, Port Otago's new $11 million tug was yesterday publicly named the Taiaroa, with its delivery scheduled for August next year.
Mr Plunket said Taiaroa had special significance for Otakou Runaka, chief Matenga Taiaroa having been a prominent Kai Tahu leader at Otakou.
Group revenue for the year totalled $78 million, with an increase from port operations to $65.3 million and property rental income up at $12.7 million.
While Mr Faulkner said Port Otago booked a ''headline'' $38.1 million after-tax profit, that was boosted by an unrealised (non-cash) gain in property valuations of subsidiary Chalmers Property, which when stripped out, left the group profit at $14.6 million.
The unrealised contribution of Chalmers, and also unrealised $13.5 million increase in the value of Port Otago's shares in Lyttelton Port of Christchurch, were booked as increasing total assets from $397.1 million to $443 million.
Chalmers Properties saw rental income up 1% to $12.7 million, with before-tax profit up 2% at $9.8 million.
Of the $23.5 million revaluation increase, the bulk was $18.2 million from the Dunedin portfolio, $4.5 million from Auckland and $800,000 from land in Hamilton.
Mr Faulkner said Chalmers had contracts for future sales in Hamilton and Auckland, the latter being selling of one property and purchase of another.
Councillor Gerry Eckhoff asked for an explanation of the ''extraordinary'' $23.5 million revaluation contribution of Chalmers, noted as a ''distortion'', to an ''otherwise good result'', by councillor Sam Neill.
Mr Faulkner said earlier valuations had been done ''block by block'' of properties, but a new valuer had undertaken a more accurate''building by building'' analysis. He said rents would not be hiked on the basis of the increased valuations, which in some years had been down.
Councillor Michael Deaker asked what Port of Tauranga's having taken a $20 million, 50% stake in Timaru's Prime Port meant for Port Otago.
Mr Faulkner said the purchase had caught Port Otago, and the rest of the port sector, ''by surprise'', and while likely good for PrimePort, few understood Tauranga's strategy.
He remained confident Port Otago could still get its share of dairy exports from Fonterra's nearby Clandeboye plant, which is about 10,000 TEUs.
