New Zealand’s Ports of Auckland Limited (POAL) recorded a 6.7% decrease in its container volumes in the 2015/2016 financial year, which stood at 907,099 TEUs, due to the overcapacity in the container industry that has led to a reorganization of shipping services internationally.
According to Tony Gibson, Ports of Auckland Chief Executive, these changes in the container industry, which affected ports, resulted in “volume leaving Auckland”.
“Global container throughput is expected to grow by only 0.3% this year while shipping capacity will increase by 4.6%. We are expecting our container volumes to be flat or fall this financial year,” Gibson added.
POAL is currently completing the container terminal infrastructure it will need to cater for larger ships. In addition, the port intends to start works to partially automate its container terminal, which would make it New Zealand’s first port and the third straddle carrier terminal in the world to automate.
Furthermore, breakbulk and bulk volumes including cars and Light Construction Vessels (LCVs) decreased by 2.2% to 5.79 million tons.
“Lower iron and steel prices have resulted in significantly lower iron sand exports and while this was partially offset by increased cement throughput due to Auckland’s booming construction sector, bulk volumes were down 5.5%. However, imports of cars, light commercial vehicles and ‘high & heavy’ vehicles increased, keeping the total fall in bulk and breakbulk volumes to just 2.2%. We expect similar volumes in the current financial year,” Tony Gibson, Ports of Auckland Chief Executive, said.
Despite lower volumes, POAL’s profit was USD 84 million in 2015/2016, an increase of USD 21 million when compared to the previous year.
The port’s revenue was USD 211.1 million in the 2015/2016 financial year, down USD 7.2 million.