Ports of Tauranga

[percy]

From today's The Press;"Freight deal backs lift in shares value- analyst."
POT.Once dredging was finished,the port would export more dairy products and long term,was also likely to win more non-dairy and import container cargo,"as international shipping lines like Maersk see the benefit of running bigger ships and calling at just one port."
Cargo consolidation in NZ was "inevitable and POT will be the biggest bebeficiary of this consolidation."
"Prime Port in Timaru,where container volumes were expected to quadruple."

[Arbitrage]

The reporter must have been reading our posts.

[percy]

The reporter must have been reading our posts.

Don't tell anyone,but the reporter was quoting from........"In a research note,Morningstar said."So Morningstar may have been reading them??? lol.
As a side note we must remember imports as more profitable than exports to a port company,so the fact POT will attract more import container cargo is significant,as it will boost profitability.

[blocker3]

Don't tell anyone,but the reporter was quoting from........"In a research note,Morningstar said."So Morningstar may have been reading them??? lol.
As a side note we must remember imports as more profitable than exports to a port company,so the fact POT will attract more import container cargo is significant,as it will boost profitability.

Also Percy apart form the Export /Import debate is container storage. The shipping lines need space in ports around the country to store these containers. POT has held their hand up high over the last 2 years or so, and have vastly increased the containers in storage in/around POT.

Totara Street here in the Mount is the prime example of that. Thus the bus ticked for storage is getting clipped more and more for the POT income. Positive thinking for POT.

Cheers

[percy]

Positive thinking for POT.
Sums up their history,and their/our future.
Maybe time for a ;we are "well positioned." !!! lol.

[Snoopy]

As a side note we must remember imports as more profitable than exports to a port company,so the fact POT will attract more import container cargo is significant, as it will boost profitability.

That may be true for POT, but not I think as a general rule.

POT is largely an export port. That means more full containers go out than come in as a rule. If POT can gain more import trade that is great because it means that one less empty container has to be transhipped from somewhere else.

I suspect in the case of Ports of Auckland the opposite holds. POA is a net importer so it has a problem of transhipping far more empty containers than they can use to other ports. Therefore in the case of POA exporting more containers is a far better growth strategy for the port than importing more.

Then if you go further afield to Lyttelton Port of Christchurch, importing/exporting is more balanced. I suspect there they are equally happy to import or export more containers to grow the business.

SNOOPY

[percy]

That may be true for POT, but not I think as a general rule.

POT is largely an export port. That means more full containers go out than come in as a rule. If POT can gain more import trade that is great because it means that one less empty container has to be transhipped from somewhere else.

I suspect in the case of Ports of Auckland the opposite holds. POA is a net importer so it has a problem of transhipping far more empty containers than they can use to other ports. Therefore in the case of POA exporting more containers is a far better growth strategy for the port than importing more.

Then if you go further afield to Lyttelton Port of Christchurch, importing/exporting is more balanced. I suspect there they are equally happy to import or export more containers to grow the business.

SNOOPY

Imports are more profitable as ports are dealing with a number of importers who 'lack muscle'.
Exports are not as profitable as you are dealing with large exporters, such as Fontera and SilverFern,who 'have muscle'.
Commodities, such as coal have very little margin.

[percy]

Hi percy
I would take what Maersk say as spin for negotiation with the ports, they will always service auckland in some capacity even if not with their own ships, as FF we pick the port we want the contianers to unload or load depending on our clients requirements and connect through the tranship ports with the ship going there.
FYI all the shipping lines coload so just because its a Maersk ship it also carries other shipping lines containers

You are right about shipping companies playing off the port companies,however what the future is about, are big ships making one port call in NZ.That port or hub will be POT not POA or LPC.

[Snoopy]

Imports are more profitable as ports are dealing with a number of importers who 'lack muscle'.
Exports are not as profitable as you are dealing with large exporters, such as Fontera and SilverFern,who 'have muscle'.

Ah I see the point Percy, and it is a good one. But if exports are not as profitable, how does POT do so well?

Commodities, such as coal have very little margin.

I know when LPC rebuilt their bulk coal loading bay, it was done on what would be seen today as a 'use or pay' deal with teh coal exporter concerned. That is one way to protect your margin!

SNOOPY

[percy]

POT does so well,being in front of "a wall of wood" and Kiwi Fruit exports,and milk products.It is because of their location.Lowish margins on huge volumes.
Coal or any commodity is low margin.LPC had to protect their capital investment in coal handling facilities.Low margin remains.