Auckland port sells US$53 million in shares to parent after 74pc loss

NEW ZEALAND's Ports of Auckland has announced a controversial re-financing scheme through the sale of NZ$50 million (US$53.2 million) in new shares to its parent, Auckland Regional Holdings (ARH), itself the business unit of the local government, Auckland Regional Council.

Rival terminals and local ratepayers have already criticised a NZ$20 million loan to pay the port's debts as a subsidy rather than a business investment after Ports of Auckland recently declared a 74 per cent profit loss.

Between June 2005 and December 2008 ARH received NZ$522.5 million, but there has been no word of any pay-back this financial year, reported the a New Zealand Press Association.

Despite productivity increases, and a 0.3 per cent increase in container volume to 843,590 TEU, and a 1.4 per cent rise in pre-tax profit, vehicle imports at the port have lagged 36.2 per cent with little prospect of improvement.

But port manager Jens Madsen said the port had 36 per cent of New Zealand's container market and boasted an 6.6 per cent increase in its crane rate and straddle carrier moves, up 4.6 per cent per hour with a corresponding 7.7 per cent reduction in man hours per box.

"We are a significantly leaner and more efficient port than we were 12 months ago," Mr Madsen said.

(Source: Schednet)