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CentrePort 2021 Annual Result

CentrePort has recorded a positive financial result despite ongoing COVID-19 related impacts and incurring residual 2016 earthquake-related costs, Chairman Lachie Johnstone announced.

CentrePort recorded an underlying net profit after tax (NPAT) of $7.2m (this is before Kaikoura earthquake-related items, Changes in Fair Value, Abnormal Items and the tax impact of these items) compared to $14.7 million in FY20.  

Operating revenue of $80.2m compared with $84.9 million the previous year reflected the absence of Cruise due to the ongoing COVID-related ban on international cruise ship visits.  These visits are not anticipated to resume in FY22.

Effective cost management saw significant reductions in operating expenses from $87.5m to $73.9m, with more to be achieved in the coming year.    CentrePort received the final earthquake related insurance settlement in FY20, however quake-related costs continued during the year such as road-bridging until March, and machine hire and generator costs.  Cost savings less increased depreciation charges in these areas, of $2.7m will be achieved next year.

Dividends of $5m were paid to the shareholders – Greater Wellington Regional Council and Horizons Regional Council - (FY20 $5m) as well as a special dividend of $15m. 

“CentrePort’s strong balance sheet and having successfully finalised the Kaikoura Earthquake claims in 2019, meant the company was in the position to pay the special dividend.

"This restores the dividend pay-out to 50 percent of underlying NPAT over the financial years spanning 2017-2020,” said Mr Johnstone.

During the year CentrePort applied for a private binding ruling from Inland Revenue to confirm the tax treatment of the Kaikoura Earthquake insurance settlement payments received in prior years. Inland Revenue has indicated that it disagrees with some tax positions taken in the Group’s 30 June 2020 financial statements. This has resulted in a prior period adjustment to income tax expense of $23.5m recognised in the current year.

CEO Derek Nind thanked CentrePort’s people for navigating another challenging year and achieving continued improvements in health and safety. 

“Health and safety is a primary focus and all staff continued to take greater leadership in achieving good results in this area.

“The COVID pandemic has also created uncertainty for our people, and wellness programmes are helping support them during these difficult times.”

Mr Nind said all trade volumes were up with log exports particularly strong.

“The more than 1.8m JAS of logs exported was the highest in CentrePort’s history and a 21 percent increase on the previous year.   The 194,000 JAS exported in June was the largest volume for a single month.”

Vehicles was another area of strong growth, up 21 percent on FY20, with more than 24,000 units processed through the port.

Mr Nind said despite the global logistics supply chain disruptions CentrePort maintained container volume levels.

“CentrePort worked closely with importers/exporters and shipping lines to minimise disruption for customers,” he said.

CentrePort’s regeneration continued to gather pace with a range of major initiatives achieved and/or underway.

Good progress was made on the $38.6 million Thorndon Container Wharf reinstatement project, which will increase the operational length of the gantry cranes from 126 metres to 261 metres.  The project is due for completion in early 2022.

Ground-resilience improvements throughout the port continued while damaged and redundant structures were removed, creating thousands of square metres of additional operational space.

Mr Nind said implementation of the port’s carbon emissions reduction strategy finalised in August 2020 was well underway.

“We are focused on meeting our targets of reducing emissions by 30 percent by 2030 and the port being a net zero emitter by 2040,” Mr Nind said.

The partnership with New Zealand Green Investment Finance (NZGIF) enabled the procurement and roll out of seven 100 percent electric container-transfer vehicles – a first for any port in New Zealand.  These units assist with lowering carbon emissions and improving operational efficiency.

The ‘enhanced rail onto port’ project, also assisted by the NZGIF facility, was competed in FY21.

Other carbon reduction activity included the introduction of electric forklifts and LED lighting.


HOLIDAY PAY AND LEAVE REMEDIATION INFORMATION FOR FORMER CENTREPORT EMPLOYEES

HOLIDAY PAY REMEDIATION INFORMATION FOR FORMER CENTREPORT EMPLOYEES

CentrePort commissioned an independent review in 2018 of its payroll processes and resulting annual holiday and other leave payments to assess compliance with the Holidays Act 2003. This was in response to advice that the payroll systems of many New Zealand businesses and Government agencies had miscalculated how holiday and leave should be paid to employees.

The review conducted by PWC established that there had been miscalculations in holiday and leave payments for some CentrePort employees, mostly impacting staff who work variable hours.

Now that work is complete, we’re putting things right by providing remediation payments to our people and former employees who were impacted by this legislation between July 2012 and July 2021.

Former employees identified as being underpaid will have received an email communication from CentrePort directing them to this website. Please click on the following link to complete the Former Employee Claim Form

Former Employee Claim Form

Completion of this form is an important step of our verification process and ensures that the information we hold for you is up to date. It safeguards us from making payments to incorrect people and reduces any risk of fraudulent activity. It also ensures that we apply accurate tax calculations and KiwiSaver deductions where applicable.

To complete the form, you will be required to upload some documentation which is listed below:

1. Identity Verification:
A copy of any one of following - birth certificate, passport, certificate of citizenship, Immigration New Zealand visa, driver’s license, firearms license, or HANZ 18+ card.

If the document has text on both sides (e.g. driver's license), both sides need to be scanned for it to be accepted.

2. Proof of bank account
A copy of any pre-printed deposit slip or bank statement which includes the full bank account number (bank, branch, account number, and suffix) and the account holder's name or a clear screenshot of your internet banking page which shows the account number and name on it.

3. Proof of Name change (if applicable)
Attach documentation showing the name change from old to new, e.g. a marriage certificate or a statutory declaration

4. Completed Tax code Declaration (IR330 form)

5. Completed KiwiSaver Member (KS2 form) OR Non-KiwiSaver Member (KS10 form)

6. If making claim on behalf of another person
Power of Attorney or Evidence of executor of a former employer estate

 



For further information please contact the CentrePort payroll team on This email address is being protected from spambots. You need JavaScript enabled to view it.

New 100% electric container transfer vehicles a first for NZ

One hundred percent electric vehicles are now being used to move container cargo at Wellington’s CentrePort, thanks to investment from New Zealand Green Investment Finance (NZGIF).

After entering into a green credit facility provided by NZGIF, CentrePort has deployed seven French-designed and manufactured Gaussin transfer vehicles and trailers. Each unit is capable of moving two 20-foot containers and has a towing capacity of 75 tonnes.

CentrePort is the first port in New Zealand to commission 100 percent electric vehicles for land-based container transfer movement.

CentrePort CEO Derek Nind says the vehicles are helping CentrePort towards its target of reducing carbon emissions by 30 percent by 2030.

“Reducing carbon emissions is a key aspect of CentrePort’s regeneration and our ultimate aim is to reach net zero emissions by 2040.

“The Gaussin vehicles also deliver other business benefits including supply chain efficiencies and lower running costs. That’s good for our customers as well as the environment,” Nind said.

The vehicles replace diesel vehicles and will reduce carbon emissions by 230 tonnes per annum, around 8% of the port’s emissions annually. As well as assisting the port to achieve its climate change goals, it helps reduce the wider Wellington region’s carbon footprint, and provides an example for other companies in the port sector and beyond.

In June 2020, NZGIF committed $15 million to the facility in support of CentrePort’s decarbonisation and regeneration plans, providing the financing to ensure that lower carbon projects stayed high on the priority list, said NZGIF CEO Craig Weise.

“It is gratifying to see the fruits of our investment in this ground-breaking first for New Zealand. The recent Climate Change Commission advice highlighted that change needs to occur across all sectors of New Zealand’s economy. CentrePort’s ambitious decarbonisation programme, including these new vehicles, shows that decarbonisation can take many innovative forms”.

The NZGIF green credit facility is financing a range of other initiatives at CentrePort including the reintroduction of rail carrying containers directly onto port after a gap of four years due to damage caused by the Kaikōura earthquake, reducing truck movements onto the port.

Technical specifications of the Electric Transfer Vehicles

Towing Capacity: 75 tonnes

Length: 5.9 metres

Width: 2.55 metres

Height: 3.55 metres

Maximum speed: 35 km/h

Maximum speed fully loaded: 24 km/h

Battery pack: Solid state battery Lithium Metal Polymer with eight-year life cycle.

Battery capability: 12 hours pulling full loads

CentrePort to pay special dividend

CentrePort is paying its shareholders a special dividend of $15 million as the company continues to progress its regeneration.

Chairman Lachie Johnstone says with CentrePort’s strong balance sheet and having successfully finalised the Kaikoura Earthquake claims in 2019, the company is in the position to pay the special dividend to its shareholders – Greater Wellington Regional Council and Horizons Regional Council.*

The impact of the 2016 Kaikoura earthquake meant CentrePort paid lower than planned dividends totalling $11.7m during the financial years spanning 2017-2020.

"The $15 million restores the dividend pay-out to 50 percent of underlying Net Profit After Tax (NPAT) over that period (i.e., $26.7 million).

"CentrePort has performed strongly since the Kaikoura quake in 2016, and despite the headwinds because of COVID, CentrePort’s trades have been growing.  Cruise remains on hold while the Government ban on international arrivals remains in place.

"The company is investing in infrastructure to benefit customers, the community, the environment and its shareholders.   CentrePort’s regeneration is progressing well to deliver a resilient 21st century logistics supply chain asset vital for the prosperity of central New Zealand,” said Johnstone.

Regeneration progress in the past year includes:

  • The return of container cargo by rail onto port after four years with the reinstatement of rail infrastructure damaged by the Kaikoura earthquake.
  • Progress on the $38.6 million Thorndon Container Wharf reinstatement project that will double the operational width of the gantry cranes to increase operational capacity to meet customer requirements.
  • The arrival and impending commissioning of 100 percent electric tractor and trailer units for the container service operations that will lower carbon emissions and improve operational efficiency.
  • Expansion of the Waingawa log yard capacity from 9,000 tonnes to 16,000 tonnes and procurement of additional land for further expansion.
  • Ground resilience improvements throughout the port including installation of more than 1000 stone columns, and continued demolition of damaged / redundant structures creating thousands of square metres of additional operational space.

 *[CentrePort pays dividends via holding companies of Greater Wellington Regional Council and Horizons Regional Council – WRC Holdings Limited and MWRC Holdings Limited respectively]