Despite Covid-19, inflationary pressures and global shipping unreliability, the port yesterday reported a profit of $70.5 million in 2021-22 to its owner, the Otago Regional Council.
Outgoing chairman Paul Rea told a council meeting that shipping disruption was now "business as usual" for the port and about 80% of vessels did not arrive when planned.
A combination of that, Covid-19 and turbulent commodity markets meant container throughput was down 5% on the previous financial year and bulk business volume was 1.7 million tonnes (down 11%), the latter mainly due to fluctuations in the Chinese market.
However, an excelling property division returned increased profits to the company due to increased rents and had largely contributed to an $82 million surplus before tax and a $70.5 million after-tax profit.
The books were in "excellent shape" and the board was looking forward to reporting an even better result next year after cruise ships returned to Port Otago after a two-year absence, Mr Rea said.
At this stage 112 cruise ships are scheduled to visit the city, 98 of which will berth at Port Chalmers and 14 in Dunedin.
They would have about 250,000 people on board and were expected to generate $60 million in economic benefit to the region, as well as adding to the port company’s performance, Mr Rea said.
"The welcome return of cruises will make for a busy summer and positive contribution to our bottom line.
"Global shipping congestion is finally beginning to ease and container shipping reliability should steadily improve, and bulk cargo volumes are expected to track at current levels."
Covid-19 had placed added demands on the port, not only in terms of its impact on shipping volumes and on staff, but also because ports had been a vital part of the country’s initial pandemic response due to being entry points across the border, Mr Rea said.
"I am proud of how we helped to defend the border, particularly in the early days of Covid."
Port Otago’s debt levels rose in the past year due to its increased investment in developing rental properties, but the company still paid a dividend of $13million to shareholders, up from $10 million last year.
Mr Rea said all port companies had been audited by Maritime New Zealand and WorkSafe following the sad deaths of two workers at other ports.
He believed safety procedures at Port Otago were robust, but ensuring the safety of all port staff and visitors was the organisation’s top priority.
The port had several maintenance projects planned for this year, including repairs to wharves at Ravensdown and Port Chalmers.
Work was also ongoing building groynes at Te Rauone beach, where three had been completed and sand recycling was due to start next month.
The roof was now being put on the port company’s new office and museum expansion project at Port Chalmers.
