Roger Gray: Port of Auckland CEO on the company's half-profit

It’s been a good six months for the Port of Auckland. 

It’s doubled its half-year profit and will deliver a 20% increase in its dividend to Auckland Council. 

Car and structure steel imports are down, but bulk cargo levels are rising. 

Chief Executive Roger Gray told Mike Hosking that's partly due to one-off events, like Genesis rebuilding the coal stockpile for its Huntly power station. 

He says their operational performance is also increasing, which is attracting more customers. 

LISTEN ABOVE 

See omnystudio.com/listener for privacy information.

Episode Transcript

Speaker 1 (00:00):
Solid report from Port of Auckland. We've got record container volume,
stronger than expected early crew season, which has led to
an underlying net profit after tax to forty two million
dollars with a dividento the local council of twenty five
million dollars. That your CEO is Roger Gray. Who's back, Well,
that's Roger, very good morning to you.

Speaker 2 (00:14):
Good morning, Mike.

Speaker 1 (00:15):
How much of this is specifically you and what you've
done and how you've done it versus the rising tide
of the economy Generally.

Speaker 2 (00:22):
I think it's a combination of both. There's been some
one off heavy bulk volume supporting Genesis, our partner, as
they were rebuilding the coal stophile, but we're seeing also
improved operational performance at the port and that's giving customers
a choice to use us where we weren't doing that
a couple of years ago.

Speaker 1 (00:39):
How do you do when you steer out your window
and you see all the coal arriving in the country.
Do you go that's good for business? Or do you
go we're not going to meet our Paris climate target
or it is what it is?

Speaker 2 (00:51):
Mike. I see it as a partnership with Genesis, and
really if they need, they need the support to keep
the hunt going, then we'll provide it for them, as.

Speaker 1 (00:58):
Simple as that. Long term your twenty four to thirty
four picture consent for bigger ships and stuff. Is that
going to happen or hopefully it will happen.

Speaker 2 (01:08):
Well, we're in the fast track. We're one of four
active applications that are currently in and I'm very confident
that we'll get approval. We've already consulted with over one
hundred and forty community groups and we feel this genuine
support for the port doing this work.

Speaker 1 (01:25):
Are you getting much pushback?

Speaker 2 (01:27):
No, No, we're actually getting a lot of support because,
if you remember, it's part of it is that we'll
sell back to the city Captain Cook and Marsden once
the warves are built, so it's a win win for
both the city and also for us.

Speaker 1 (01:40):
We also got an increase in full year expectations. Are
you bullish about New Zealand for this year or two?
Is that saying too much?

Speaker 2 (01:49):
No? I think we're certainly seeing growth in a number
of areas as a containers are particularly up eight percent.
We think that growth will continue. We have seen a
very soft car market, which I'm sure you're aware of
up to thirty percent of cars are down, but I
think that's going to come back over the next six months.
So we're feeling very confident in our profit upgrade and

(02:10):
we know we can deliver that seventy five to eighty
medion for the city.

Speaker 1 (02:13):
And you paid down a lot of debt. What's that
allowing you to do?

Speaker 2 (02:17):
Allows us have money the debt, heead do the investment
in the walls, the big ship capability, the conversion of
the straddles to foll High, all of the capital work
we need to do. We've got the ability to do
that within our own borrowing capability.

Speaker 1 (02:32):
Okay, and I'm reading about Northport. This will presumably in
some way, shape or form affect you. Is this problematic
for you or not?

Speaker 2 (02:39):
Really? No, we're quite relaxed about it. And you're probably
aware that we've agreed to sell our twenty percent of
the MMH if the deal goes ahead.

Speaker 1 (02:48):
Right, And if the deal goes ahead, is that better
for New Zealand in general?

Speaker 2 (02:53):
I think it. Continuing to rationalize and get the port
sorted out is a really important next step, and certainly
Port of tot On has moved to take NMH Private
is part of its strategy good Stuff.

Speaker 1 (03:07):
Nice to talk to you as always, Roger Grave, Port
of Auckland CEO. For more from the mic Asking Breakfast,
listen live to news talks it'd be from six am weekdays,
or follow the podcast on iHeartRadio