Record Lyttelton Port profit delivers bigger payout to city

Thursday, 4 September 2025

Lyttelton Port handles most of Canterbury’s imports and exports, and is preparing for a major eastward expansion at Te Awaparahi Bay.

Lyttelton Port has delivered a record $25.2 million profit, and handed over a $12.1m payout to the city’s investment arm, boosting returns for Christchurch ratepayers.

The strong result for the year to June was driven by a surge in bulk freight volumes, including grain, fertiliser and fuel, even as container trade continued to slide.

Revenue rose 6.8% to a record $207m, and earnings before interest, tax, depreciation and amortisation (EBITDA) lifted 21% to $63.4m.

The $12.1m dividend paid to Christchurch City Holdings Ltd (CCHL) was up from $10.6m the year before. The port is fully owned by CCHL on behalf of Christchurch residents.

Port dividends support CCHL’s wider contribution to council funding and help reduce pressure on rates.

The figures are part of LPC’s annual results release, which provides headline numbers ahead of the full annual report due in October. That report will give a more detailed breakdown of the company’s financial position, including liabilities, as well as fuller information on trade volumes and other performance measures.

LPC chief executive Graeme Sumner said the company had focused on lifting performance, managing costs, and improving operational efficiency.

Bulk imports jumped 24% to 833,116 tonnes, led by strong demand for fertiliser and grain. Fuel volumes were up 4.4%, and car imports edged up 3% following two years of decline.

In contrast, container volumes continued their downward trend, falling 3.7% to 431,556 standard 20-foot containers (known as TEU), the lowest level in three years.

However, ship turnaround times improved by 33%, a key efficiency gain that helped boost profitability.

Chairperson Barry Bragg said the board was focused on delivering stronger returns after a period of heavy infrastructure investment and below-par earnings.

LPC chief executive Graeme Sumner says the company is focused on lifting performance while preparing for long-term growth.

LPC is the South Island’s largest port by container volume and handles about 80% of all imports into the region. It plays a critical role in the freight network for Canterbury and beyond.

Major capital investment is expected to resume next year, with significant spending planned on the estimated $800m expansion at Te Awaparahi Bay.

The full business case for the expansion is still being finalised and must be approved by the LPC board, which is due to meet for its annual general meeting in October.

If approved, construction could begin later this decade, with the expanded terminal handling its first ships in the early 2030s.

The project, which would increase container capacity by more than 60%, is seen as critical to future-proofing South Island freight, but its funding remains uncertain.

LPC has said it won’t borrow the full amount, raising questions about whether outside capital could be brought in.