NZ Port Sector: Port profit flat but ship channel to go deeper
January 27th, 2010
Lyttelton Port has issued a profit warning saying full-year profit may decline, reflecting weaker first-half trading. Net profit is expected to be $9m to $10m in the 12 months ending June 30, 2010, from $10.06m for the 2008-09 year. Chairman Rodger Fisher says “the current financial year remains very challenging, we do anticipate the volumes will increase in the latter six months of the financial year.”
Despite stormy financial seas, the port company has lodged an application for resource consents to deepen its shipping channel by up to 4 metres, so larger vessels can call over the full tidal range. The existing channel ends approximately a kilometre inside the harbour heads. Under the proposed plan the deepened channel will extend approximately 4km inside the harbour heads.
CEO Peter Davie says the company wants to be ready to respond quickly to larger vessels calling at the port. “We want to secure consents so when the time is right we can begin work as soon as our customers require it.” Once underway the dredging programme will take around 8-12 months to complete and it will cost up to $100m - around $25m for each metre of additional draught created. The dredged sediment would be deposited at a site approximately 6km from Godley Head, where the water is 20m deep.
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