The amount Port Otago pays to the Otago Regional Council will rise $1million a year to $15million by 2024, the council-owned company says.
The statement of corporate intent for Port Otago to the end of 2024 said the dividend policy remained consistent with previous years.
It said the intention was to pay dividends within the range of 50% to 70% of the group’s normalised operating surplus after tax.
The report received by the council yesterday said the port company would grow its container business, increase storage capacity, enhance shipping flexibility with Victoria Channel improvements and rebuild the cruise business.
Despite zero cruise ships last year, the port moved $4.3billion, or 2.7million tonnes in exports last year, including $2.1billion in dairy, $1.6billion in meat and $261million in wood.
The port company’s property arm had 100% property occupancy in 2021, the report said.
The target dividend amounts were in line with the council’s recently passed long-term plan.
The target dividend amount for this financial year was $13million; next year it would rise to $14million, rising again in 2023-24 to $15million, it said.
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On top of the dramatic ORC rates increase to property, I would say ORC are basically rolling in money. Yet, struggle to pay their bus drivers and have little interest in running appropriately sized EV buses that suit the terrain. Oh, and wasn't Hobbs leaving? Something about some toys thrown out of a cot?