Ports of Auckland's restructuring programme is finally paying off, with the company improving its half-year net profit to December 31 by 70 percent.
The Auckland Council-owned company reported a tax-paid profit of US$21.97 million, up from $12.9 million in the same period a year earlier, reported Dominion Post.
Ports of Auckland chief executive Tony Gibson said the strong result was due to the reforms the company embarked on in 2011 and improved productivity.
"We're really bearing the fruits of that change."
While the first two months of 2014 had been positive, the second half of the year would not be as strong as the first half, he said.
The port handled a record number of containers during the six months, with total container volumes increasing 15.1 percent to 476,333 TEUs.
Service revenue was up 17.2 percent to $89.21 million. The increase in containers drove costs up 4.6 percent to $47.27 million.
While Ports of Auckland still had a "wee way" to go, it was now producing the sort of return Auckland Council should have been getting, Gibson said.
"We're now in a position where we can invest in business," Gibson said.
Last month the company said it was buying a new tug and six new straddle carriers for about $9.99 million to meet continuing growth. On Monday the board approved the purchase of a further four straddle carriers. The restructuring had allowed the port to take advantage of an improving economy and Auckland's growth, Gibson said.
While a protracted dispute with maritime workers opposed to the contracting out of their work on the wharves in 2011 is yet to be fully resolved, 60 percent of workers were now working a flexible shift and roster system, Gibson said.
Ports of Auckland won back shipping business from Port of Tauranga in July after the Southern Star service left Auckland at the height of the waterfront industrial dispute.
The port also secured two new shipping services last year.
Port of Auckland has faced increased competition from Port of Tauranga, which bought an industrial park in South Auckland as part of its inland port expansion plans in South Auckland.
Despite the high volumes, the international shipping business was in a "mess", with supply outstripping demand, Gibson said.
But within the next two years shipping lines would start to return to profitability, he said.
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