Auckland port profit up 30%

Ports of Auckland's interim profit rose through its aggressive clamp-down on labour costs, increased productivity and significant interest cost savings, according to analysts, the Christchurch Press reported.

Net profit rose 30 percent to US$9.8 million in the December half, from the same 2008 period, despite revenue falling 6.8 percent to $57.5 million on the back of lower container volumes.

Morningstar Research senior equity analyst Nachiket Mogue said the port's net profit growth had been underpinned by productivity gains, and much lower interest expenses because of debt repayment.

Net debt fell 23.8 per cent to $186.7 million. Interest costs dropped 39.5 per cent from December 2008 to $6.5, and was off 20.7 percent at the June 2009 year.

Chief executive Jens Madsen said he was pleased at the success of its cost containment programme, which would exceed its targeted $3.5 million in savings by the end of the financial year. He also said the port was studying outsourcing the lashings of containers on to ships, and some driving work, after the port's consolidation of a team of stevedores last year.

(source: Cargo News Asia)