December 2009 (pdf) - Port Nelson

Port Nelson Limited report. December 2009. Page 2
editorial
At the port company presentation to stakeholders at the end of
September, Chairman Nick Patterson summed up the 2008 - 2009
year and expressed his concerns about the impact of compliance
costs on the results.
Port Nelson Limited paid a dividend of $4m to its shareholders,
the Tasman District and Nelson City Councils for the 2008-09 year.
However, the after-tax profit would have been higher, but for the
steep compliance costs the port faces in dealing with the effects of
noise on port hills’ residents.
The terms of the Noise Variation set by the Environment Court
require us to meet the costs of full or partial noise insulation
treatment for up to eleven homes near the port, and to buy the
most affected homes if the owners decline mitigation treatment.
This cost $1.4m over the past year and reduced the operating
surplus to $4.9m after tax.
Ongoing expenses we face in relation to noise mitigation work
in the coming years will continue to impact on our result and
the return to our shareholders. While we fully understand our
obligations in this area and are committed to meeting them, the
increased compliance costs that organisations such as ours have to
meet are a major concern.
Overall it was a satisfying result for the year with total cargo at
2.755 million tonnes, boosted by log exports to China and increased
imports of fuel and empty containers.
The year in review
Port Nelson Limited • 10 Low Street, Port Nelson • PO Box 844, Nelson, New Zealand
Tel +64 3 548 2099 • Fax +64 3 546 9015 • www.portnelson.co.nz
RePort Nelson is a triennial publication produced for Port Nelson Limited by:
• Nelson Media Agency - www.nelsonmedia.co.nz • SeeReed Visual Communication - www.seereed.co.nz
Photography: Troy Dando, Roy Skucek, Jacquetta Bell
The trend towards containerisation of processed wood products
continued and the port exceeded 80,000 Twenty-foot Equivalent
container Units (TEU) for the first time.
The global recession reduced calls from vessels carrying motor
vehicles and steel, and while there were limited changes to the liner
shipping services using the port over the last 12 months we may
face further changes in future.
It is likely Port Nelson and most other ports will continue to see
decisions made by both shipping lines and major exporters that
will have an effect on shipping services around the New Zealand
coast. While such changes are inevitable, they do mean we are
operating in a very tight market and they make further investment
in infrastructure a very uncertain science.
I would like to take this opportunity to thank port customers and
staff for their support throughout the year. I wish you all a safe and
relaxing holiday season with time to enjoy our region in summer
with friends and family.
Nick Patterson
Chairman, Port Nelson Ltd
Briefing the Stakeholders
It was a wild and wet day at the end of September when we invited 200 stakeholders to attend a briefing on our Annual Report at the Nelson
Yacht Club. After an introduction from Chairman Nick Patterson, Martin Byrne gave a comprehensive presentation that put the year’s result
and the current port operation into a wider context of the global recession and trends in the shipping industry. Guests stayed on to enjoy
refreshments and the opportunity to catch up with others in the industry.
Pictured from left: PNL Chairman Nick Patterson, John McLiskie, Heartland Fruit, and Kay McNabb, Nelson Airport. Next photo: Paul Salvador and Tony Pratt from
Westpac with PNL board member Bronwyn Monopoli.