NZ aluminium smelters related cargo boosts South Port's profit

South Port, New Zealand's southernmost commercial deep water port, has announced a record $7.74 million profit for the 2014-15 year and plans for a $4.25m freight centre servicing road and rail in Invercargill. The Bluff-based company said busy seasonal freight activity had produced a record cargo volume in the year and the highest after-tax profit result in the port operator's history.

South Port chairman Rex Chapman said stronger bulk volumes drove overall cargo throughput to the new record level of 2.86 million tonnes while the company's warehousing, container handling and marine functions provided support to core activity.

South Port chief executive Mark O'Connor said the lift was largely driven by fertiliser, stock food and dairy-related product while other cargo categories held up well.

New Zealand Aluminium Smelters related cargo and petroleum were two other sizeable bulk product flows that contributed positively to the port's overall performance.

"Both of these cargo categories delivered volumes slightly up on the prior year's level." The revised power deal between the smelter and Meridian Energy had provided greater certainty for NZAS and enabled it to focus on other key challenges within its business, he said.

However, O'Connor said the next year or two could be more challenging as the range of industries react to more negative economic sentiment. Chapman said despite customers supplying stable cargo projections for the coming year, South Port was taking a more cautious view of the 2016 financial period.