chief executive officer’s report The financial year just ended has been a further challenging 12 months for us, on the back of a drop-off in some cargo volumes, continuing reviews of shipping services and the ongoing financial challenges faced in many markets served by exporters from the region. On the cargo side, log volumes for the year were around 636,000 tonnes, well down on the 723,000 handled in the previous year and even further below the expected budget. The softening of the Chinese market in particular has been very apparent to exporters in the <strong>Nelson</strong>- Tasman area, and it appears the current volumes are likely to be the reality for some time to come. Apple volumes were also lower than the previous year, due to a combination of a smaller crop and fruit being later this year following a cooler-than-usual summer. On a more positive note, at the time of preparing this report, pipfruit prices in major overseas markets seemed to be more robust than in recent years, which is a positive for the horticultural industry. Fish volumes have also held up well this year after a good hoki season, and it is hoped, with continued good catches and the addressing of some storage issues for diesel supplies on the reclamation that fish volumes will continue to grow in the coming years. Processed wood volumes were in line with expectations, wine volumes remained strong and fertiliser and gypsum imports were also at pleasing levels. On the container side, while the figures for the year were slightly below budget, at 86,178 TEU, this was the highest number of containers handled annually through the port to date. Vessel visits, at 733, were well down on the previous year’s total of 850. This was partly due to the withdrawal of Strait Shipping’s weekly <strong>Nelson</strong>-to-Wellington service in June 2011, and the absence of extra loader vessels calling during the export fruit season this year. As mentioned in the Directors’ <strong>Report</strong> on the previous page, the decision of Maersk to review their <strong>Nelson</strong> weekly service caused considerable consternation in the export community during the month of June. While the final result of <strong>Nelson</strong> receiving a regular call on the NZ1 service was a positive one, the decision of Maersk to withdraw their Timaru service further emphasised the continual state of change prevalent in the industry. We firmly believe that the wide and varied cargo base available for shipping lines in this region is a major point of difference from some other regional ports, and is one that the lines themselves acknowledge. The continuining increase in container vessel sizes is of ongoing concern to us, given the physical limitations of <strong>Port</strong> <strong>Nelson</strong> and the unrealistic cost of deepening beyond our present limitations. That having been said, we remain firmly of the opinion that cargo moving over our wharves, whether by the use of feeder or direct services, and probably a combination of both, is the logical means for the bulk of <strong>Nelson</strong> export cargo to make its way to overseas destinations. see Gary Rae from Incite Ltd and <strong>Nelson</strong> City Council jointly win the New Zealand Planning Institute Award for the implementation of the <strong>Port</strong> Noise Variation. While not a direct recipient of the award itself, PNL staff undertook much of the work that went on behind the scenes to make the Variation workable, and it was very satisfying to see this recognised at a national level. Noise complaints for the year were down to eight, which remains encouraging, and is a testament both to the efforts of our staff and also to the ongoing assistance and understanding of <strong>Port</strong> Hills’ residents, including the representatives on the Noise Liaison Committee. We take this opportunity to thank the members of the Environmental Consultative Committee for their ongoing work as well. In the wider community, earlier this year, we commenced monthly visits to the port from school groups and community groups such as Probus and Rotary Clubs. This programme has proven very popular and we currently have bookings right through until the end of this year. In the past, we have run open days every three to four years, but this new initiative gives us an additional regular opportunity to interact with a wide range of people and to show them exactly what goes on within our port confines. Feedback to date has been tremendous. Internally, much of our focus at present is around what we term our Journey to Excellence (J2E) which has a major emphasis on reducing wastage and increasing efficiency and productivity through utilising the ideas of our people. Part of this wider process has been working through our Vision, which is based around the six pillars of our business, which are people, processes, customers, financial results, the community and the environment. These are tied into our Purpose, which we clearly see as being to help facilitate regional prosperity. Clearly, in the current economic climate, achieving that is challenging, but I am convinced that we have the people within our organisation to drive the business forward. In closing, I would like to once again express my thanks to our Board of Directors for their support over the last 12 months, and my sincere appreciation to our staff without whom this business would not function. I would also like to thank the importers and exporters of <strong>Nelson</strong>-Tasman and Marlborough who put cargo over our wharves and support us through many challenges such as the Maersk service review mentioned above. That process proved the influence that all of us can have when working together as a cohesive unit. We wish you all the best for a successful <strong>2012</strong>/13. Martin Byrne Chief Executive Officer, <strong>Port</strong> <strong>Nelson</strong> Limited. The last year has seen us make further positive steps in continuing to enhance our environmental credentials within the region and in the wider port industry. Recertification of our ISO 14001 management system was a positive sign that we continue to perform well environmentally, and an endorsement of the work undertaken by our Environmental Officer Thomas Marchant. It was also very pleasing to 6
financial results A sustainable business delivering value to our shareholders • Consistently meet our agreed targets vision • Minimise reliance on one off events • Minimise waste to reduce our costs • Identify new opportunities to grow our revenue • Reduce business risk through diversity
Change language