17 February 2025
Southland’s wet spring leads to an increase in cargo at South Port
Southland’s record wet spring has led to a substantially improved financial performance by South Port New Zealand in the first half of the 2024-25 financial year.
The Bluff port company’s operating revenue from port services in the six months ended on December 31 was $29.57 million, up on the previous first-half result of $25.48m.
South Port chairperson Philip Cory-Wright said in contrast to the uncertain trading conditions in the first half of the 2023-24 financial year, the port saw volumes rise across the majority of key commodity imports and exports.
A particularly wet spring in the southern region slowed grass growth in the agricultural sector, and that rural suppliers to increase imports of supplementary feed.
There were positive signs in the forestry sector, with exports of both logs and woodchips showing signs of recovery.
He said the port would continue to look at upgrading infrastructure “to ensure we can service additional cargoes, wind farm developments and open-ocean aquaculture projects that are currently lodged in the Government’s fast-track consenting process’’.
South Port chief executive Nigel Gear said 131 calls by large vessels represented an increase of 11%, and total cargo activity was 1.691 million tonnes, compared with 1.488 million tonnes in the previous first-half period.
Increased tonnages in comparison to the prior half-year were logs (up 31,000 tonnes), fertiliser (up 41,000 tonnes), woodchips (up 59,000 tonnes) and stock food (up 143,000 tonnes).
Gear said the 10.7-metre high tide draught in place after the Kia Whakaū dredging project, which deepened Bluff’s entrance channel, swinging basin and berth pockets, had proven its worth.
It meant vessels were able to load more woodchips per call instead of making two calls to the port, and the MSC line’s Wallaby service to Australia was loading and discharging additional containers per call, he said.
In addition, vessels containing bulk agricultural and New Zealand Aluminium Smelters (NZAS) imports had greater payloads than were previously achievable, and more vessels were able to move on both high and low tides.
“These benefits are pleasing to see, and there is an expectation that other cargo providers will look to utilise the increased draught as opportunities are identified,” Gear said.
The only cargo activity negatively affected in the December half-year was related to NZAS, which makes up 30% of South Port’s cargo volumes.
In August last year the smelter at Tiwai Point reduced its electricity usage as part of its new agreement with Meridian Energy, which enables it to transfer energy in periods of high demand.
The temporary closure of a potline manufacturing aluminium at NZAS led to decreases in alumina imports (down 53,000 tonnes) and aluminum exports (down 34,000 tonnes).
The potline is being progressively brought back online and NZAS was expected to return to full production by April 2025.
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Source: The Press – 17 February 2025