Lyttelton Port said today it was on track for a 21 percent fall in annual net profit as it continues to struggle with costs.
The Christchurch-city council owned company, which will see volumes increase by 10,000 TEU (20-foot container units) as it remained a port of call for Maersk Line, said it expects to post an annual net profit of around $8 million, down from $10.1m a year earlier.
``Over the last three years we have had considerable volume growth in our main trades, however some of the gains have been offset by rate pressures,'' chairman Barney Sundstrum said.
``In addition, the bottom line has been impacted by increasing maintenance costs as we continue to invest in our infrastructure,'' he said, noting the company expected continued pressure on its profitability.
Lyttelton Port believed it was time for New Zealand ports to merge, a move under consideration by the ports of Auckland and Tauranga, and cut out duplication of investment.
``As a board we feel a fully integrated approach, involving ports, shipping lines and domestic transport infrastructure is needed where all parties are investing wisely and making decisions that are enduring and in the best interest of our importers, exporters and the country as a whole,'' Mr Sundstrum said in speech notes for the annual meeting in Christchurch.
Lyttelton Port tried to link with Hong Kong giant Hutchison Port Holdings earlier this year, but Port of Otago's purchase of a 13 percent stake upset majority owner Christchurch City Holdings' plans to onsell Lyttelton to Hutchison.
``While our attempt at linking with international partner Hutchison Port Holdings was not successful, we continue to look at ways of how we can meet global market demands for efficient transport links,'' Mr Sundstrum said.
Maersk, which handles 40 percent of New Zealand's seafreight, has confirmed it would continue to visit its nine New Zealand ports as part of a change in its services.
Port Lyttelton would feature on the feeder service for exporters and importers to the US east coast and Malaysia's Tanjung Pelepas port.
Lyttelton Port shares closed down 4c at $2.06.
