Port Otago was hit by more than $800,000 in restructuring costs.
About $500,000 went on voluntary redundancy payments to 17 staff at Port Chalmers, while costs of $300,000 were incurred closing subsidiary Chalmers Properties' Wellington office and relocating it to Dunedin, the latter including an unspecified redundancy package for outgoing inaugural property chief executive Andrew Duncan.
At a full ORC council meeting yesterday, chairman David Faulkner described first-half operations as "property up and port down", with group revenue flat and mirroring last year's $34.4 million.
Trading revenue from port operations was down 2% to $28 million while rental income from Chalmers Properties was up 14%, from $5.4 million to $6.2 million. After-tax profit was up $5.57 million to $7.08 million.
Conventional cargo was down 7% to 656,000 tonnes, fertiliser tonnage was down 45% to 77,000 tonnes, empty container handling was down 22% and other regions' containers handled through Port Chalmers for export was down 55%.
Mr Faulkner said balancing some of this data was "strong" log exports at 342,000 tonnes and fuel imports up 10%, ship numbers up slightly at 242 and expectations of a record 85 cruise ship visits.
Mr Faulkner and Port Otago chief executive Geoff Plunket said Port Otago was no longer a "hub" port, in reference to giant Maersk line quitting the transhipping of empty containers, but was "now a port reliant on regional growth".
Mr Faulkner was optimistic dairy and log exports could enjoy 2%-4% growth in the coming year, but that did not otherwise replace the loss of 20,000 tranship containers.
He expected a "similar result" to the last full financial year, but cautioned about the effect the uncertainty of property revaluations could have on financial results.
He told councillors a joint-venture commercial development on the outskirts of Hamilton would have a "huge influence" on revenue, saying later that over up to 10 years sites would be developed and sold, but would require some capital expenditure.
ORC councillors were concerned at the "debacle" of the industrial dispute at Ports of Auckland, and asked where Port Otago stood with its staff, as the "cash cow" of Port Otago was "very valuable" to the region and the ORC.
Mr Faulkner said it maintained "a good dialogue" with Maritime Union of New Zealand staff, who handled containers but not logs, and "certainly see no need to change", in reference to Auckland port sacking almost 300 staff in order to restructure for better productivity. The company and union are due to begin initial contract negotiations in April.
In Port Otago's full-year result, to the end of June last year, it delivered a record $12.5 million dividend to the ORC, with revenues up 6% at $74.2 million and a slight increase in container trade to 221,000 TEUs (20ft equivalent units).
The ORC has appointed an additional director to Port Otago's board, as several prepare to retire during the next two years.
Arrowtown-based Paul Rea has had an overseas career in the oil industry, including senior management roles and directorships, with responsibilities including logistics, operations, marketing strategy and governance.
ORC chairman Stephen Woodhead said, when contacted, the appointment of a new director with the skills Mr Rea had would be a bonus during the coming "transition" period of retiring directors.
