Port sees record throughput and high profits for past FY

NEW Zealand’s Lyttelton Port Company reported a record-breaking 502,210 TEU throughput for the 2022 financial year. This was an increase of 15% on the previous year’s throughput.

Also, LPC reported a net profit after tax of NZ$18.9 million for the year. This was an increase of 18% on the previous year and 7% more than it statement of intent target.

LPC chief executive Kirstie Gardener said the results were only possible thanks to the hard work, dedication and innovation from the teams at Lyttelton Port, CityDepot and MidlandPort, and the company’s customers.

“It’s been a year of great highs, but one tragic low for the port with the loss of cargo handler Don Grant on ANZAC Day. Don’s passing was deeply shocking for the LPC whānau [extended family] and this loss is felt by us all, but most of all by Don’s family,” Ms Gardener said.

Investigations ongoing

External investigations into the incident are ongoing. LPC said it is committed to ensuring that Mr Grant’s memory is maintained by learning from this event and making sure the entire port industry is as safe as possible for all workers.

“As part of this commitment, we’re actively involved in the work the Minister of Transport and Workplace Safety, Michael Wood, has launched to strengthen port industry safety,” LPC Board chair Margaret Devlin said.

“We’re focused on helping develop new standards for our industry that cover the critical risks workers face every day.”

The company said it had launched a comprehensive permit-to-work system this year, which increases visibility and control over contractors and others carrying out work around the port, including allowing LPC to intervene when work practices need to be changed.

Also this year, LPC saw a change in leadership. Its former chief executive Roger Gray resigned to move to Ports of Auckland and Kirstie Gardener took the helm at Lyttelton.

New infrastructure

LPC said it is continuing to invest in infrastructure to support the South Island economy.

The company saw a 37.5% rise in the value of exports through the port this year to NZ$8.61 billion – a NZ$2-billion increase from the previous year. The value of imports into Lyttelton also jumped by 44.5% to just under NZ$6 billion.

The port said this growth highlighted the need for an NZ$85 million Eastern Development programme, which will expand the Lyttelton Container Terminal on the Te Awaparahi Bay reclamation and boost capacity from 500,000 to 620,000 TEUs per year.

“We have completed some major upgrades to our dry dock facilities this year and we’re also adding a new container yard, four new reefer towers, new truck receival and dispatch lanes, and a new straddle workshop facility,” Ms Gardener said.

“This important investment is all part of our Leading the Way strategy that we rolled out last year to guide the next five years of our journey. It focusses on making LPC a sustainably profitable, diverse, inclusive and safe port, and ensures we deliver the right infrastructure at the right time.”

Community focus

This year LPC has also added a new pillar to its strategy, Manākitanga (hospitality) and Kaitiakitanga (guardianship). These, the port said, reflect its commitment to positively impacting the local community and protecting the natural environment.

“We’re working to complete a climate risk assessment and have taken steps towards biodiversity reporting,” Ms Devlin said.

“We’re also reviewing our existing carbon-reduction plan, and in FY23 the board will look at adopting science-based targets to update our sustainability strategy.”

The port said increased volumes have challenged this year’s carbon reduction journey, but LPC has reduced its carbon intensity per TEU by more than 7%.

Cruise

“Looking forward, we’re really excited to see cruise ships return to Lyttelton over the next few months, berthing at our new cruise terminal,” Ms Gardener said.

“We have more than 80 bookings for the summer 2022-23 season – a massive increase on the 25 small vessels who visited us in the 2019 to 2020 season.

“We’re focussed on taking LPC to the next level and delivering customer excellence, while being a safe, sustainable and profitable Port, which will remain at the core of our strategy into FY23 and beyond.”