Ports of Auckland profits down as it invests in innovation and automation

Friday, 2 March 2018

Ports of Auckland chief executive Tony Gibson says profits dipped in it the six months to December because of its heavy investment in innovation.

Ports of Auckland is investing in blockchain technology and automation to transform the traditional shipping industry and cope with growing container volumes..

The Auckland Council-owned company reported a flat profit of $29.2 million after tax for the half-year to end December.

Tony Gibson says the port must continue to invest in its infrastructure while Auckland Council and the Government look at relocation options in the longer term.

Chief executive Tony Gibson said while container volumes, general cargo and cruise ship visits had risen, profits were lower due to a heavy focus on innovation and technology as part of the company's 30-year master plan to increase the port's capacity.

'While Auckland Council and the Government are looking at relocating Auckland's port over the next few decades, in the interim additional investment is needed so the port can handle the increased demand for freight that will come from this population growth,' Gibson said.

Cruise ship visits to the Auckland port are up 50 per cent in the first half of its financial year.

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'We are transforming our operation to keep up with Auckland's growth, but doing it in a way that is sustainable and in line with community expectations.'

Auckland is growing by around 50,000 people a year and is expected to have a population of two million people by 2028.

The ports 30-year plan includes a five-storey building to house the 30,000 cars that are imported through the port each month.

The port's existing head office could also be replaced with a new building nearer Tamaki Drive, and removing Marsden Wharf to redevelop Bledisloe South Wharf.

Ports of Auckland is working on becoming the first automated container terminal in New Zealand. It has received two automated straddle carriers and will begin testing soon.

Truck handling lanes were planned to be automated operation by next year.

A deep-water container berth and high-productivity cranes for the wharf are expected to be delivered in September.

Gibson said its innovation hub was also exploring the use of blockchain technology to account for shipping transactions.

But job cuts would follow automation, Gibson said.

'There will be a reduction or elimination of some roles, while other new roles will develop,' he said.

Ports of Auckland's revenue for the half-year was up $10m from a year earlier, to $120m. It will pay an interim dividend of $23.8m to Auckland Council.

The country's biggest port, raked in about $22 billion worth of imports in the 12 months to June 2016.