POT-Timaru inland port Rolleston
This is interesting and will put LPC on their mettle.
I assume this inland port will be adjacent to the siding already used by Westland Dairy in the industrial area.
POT-Timaru will need to invest in straddles and ship to shore container cranes to make this work. Their tower crane and forklift method shipside will strugle to handle any increase in through-put.
I wonder if Kiwi Rail will reinstate the Rolleston Triangle to make connections to the South Line easier, and what strategy POT-Timaru has, will Timaru feed Tauranga via coastal shipping or will Timaru become an direct shipment port?
How can LPC repond? More gantry capacity at Chapmans Road, more truck lanes at the Lyttelton Terminal, bring forward the terminal expansion on to the Te Awaparahi Bay reclamation. If they really wanted to take the battle to POT-Timaru they could set up their own inland ports at Temuka Washdyke and Ashburton.
Boop boop de do
Marilyn
Freight hub 'should benefit Lyttelton'
There is a, on one hand.. on the other hand, item by Marta Steeman in todays Christchurch Press,
Her conclusion, its not quite as easy for POT-Timaru as you would think.
http://www.stuff.co.nz/the-press/bus...efit-Lyttelton
Boop boop de do
Marilyn
Operational Performance FY2015
Quote:
Originally Posted by
Snoopy
You have to look long term Noodles, with what LPC are doing with the growth in log and container freight. Plus think about all those raw materials coming across the docks to assist the ChCh rebuild. I think the operational picture shows real improvement promise, but don't get too excited about the operational performance of the upcoming FY2014, even if those insurance payments cause headline profit to rocket.
The biggest insurance payment ever made to a New Zealand company of $450m seems to have slipped quietly under the radar. But it will make a big difference to LPC from the FY2015 year. The earthquake adjusted profit for FY2013 was around $15m. Interest expense was $7.7m. So what if there was no interest bill (there won't be in FY2015)? Underlying net profit would jump to:
$15m + 0.72($7.7m) = $20.5m. (A)
Now what happens if you have a large wad of insurance payout cash to invest, once the underlying company debt was repaid? From the half year balance sheet:
$382.7m - $39.4m = $343.4m
Say you got 4% on that money, and tax was 28%. The interest earned would amount to:
$343.4 x 0.04 x 0.72 = $9.9m (B)
Add up A and B and I get a baseline NPAT of $30.4m. Shares on issue amount to 102.2m. So prospective FY2015 eps is:
$30.4m/102.2m = 29.7cps.
At $3.20, which is the price shares are being offered at on the market now, the prospective FY2015 PE is:
$3.20/ 29.7 = 10.8.
If there is a cheaper quality share on the market today, I can't think of it.
SNOOPY
discl: hold LPC
PS Net asset backing is now:
$528.4m/102.2m = $5.17
That means for every $1 of assets in LPC, you only have to pay 60c on the market. How's that for a discount fellow value investors?
Former Kiwirail CEO now on board
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31 March 2014
NZX RELEASE
BOARD CHANGES
Lyttelton Port Company Limited is pleased to advise that Mr Jim Quinn has joined the Board with effect from 1 April 2014. Mr Quinn has had a career in senior leadership roles and brings to the Company a wealth of experience in transport and logistics from his time as Chief Executive of KiwiRail Limited from March 2009 until earlier this month. Previously he was Chief Executive of Express Couriers Limited, a joint venture between New Zealand Post and DHL.
As required by the NZX Listing Rules, the Board has determined that Mr Quinn is an “Independent Director” for the purposes of the Listing Rules.
Mr Quinn will replace Alan Grant who has given notice of his resignation as a Director of the Company with effect from 1 April 2014. Mr Grant was appointed by the Board to fill a casual vacancy following the resignation of Rodger Fisher at the Company’s 2013 Annual Meeting.
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A good appointment I think, as someone with wide experience in logistics.
SNOOPY