Cargo Growth Produces Record Year for Port of Tauranga

24 August 2018
Cargo Growth Produces Record Year for Port of Tauranga
FINANCIAL RESULTS FOR THE YEAR TO 30 JUNE 2018
Port of Tauranga’s hub port strategy is gaining momentum, with growing cargo volumes and increased
transhipment driving record results in the year to 30 June 2018.
New Zealand’s largest, fastest growing and most productive port saw container volumes increase 8.9%
to nearly 1.2 million TEUs
1
, while overall cargo volumes increased 10.2% to almost 24.5 million tonnes.
Highlights:
Group Net Profit After Tax increases 13.0% to $94.3 million
Annual container throughput increases 8.9% to almost 1.2 million TEUs
Transhipment increases 23.3%, making up a quarter of all container traffic
Log volumes increase 14.3% to 6.3 million tonnes
Exports increase 8.2% to 15.4 million tonnes, while imports grow 13.7% to 9 million tonnes
Subsidiary and Associate earnings increase 11.9% to $16.4 million
Annual revenue increases 10.9% to $283.7 million
Asset valuation increases by $226.0 million
Final dividend of 7.0 cents per share brings the total ordinary dividend to 12.7 cents per share,
an increase of 13.4% on the previous year. In addition, a special dividend of 5.0 cents per share
will be paid.
New Zealand’s busiest port, Port of Tauranga Limited (NZX:POT) today announced record annual
earnings as freight volumes continue to increase and shippers utilise its hub port status.
Group Net Profit After Tax for the year to 30 June 2018 increased 13.0% to $94.3 million.
Good performance from our subsidiary and associate companies saw earnings lift 11.9% to $16.4
million.
The results were lifted by increased volumes across all major cargo categories, including export logs
(up 14.3% in volume) and dairy products (up 4.0%).
Transhipment, where containers are transferred from one service to another at Tauranga, has grown
23.3% in the past year, demonstrating the entrenchment of the "hub and feeder port" model in New
Zealand.
“This growth is a direct result of Port of Tauranga’s six year investment in building capacity to
accommodate larger vessels,” says Port of Tauranga’s Chair, David Pilkington.
1
 Twenty Foot Equivalent Units, a standard measure of shipping containers

2




“We completed our capacity expansion programme in 2016 and the effects were almost immediate. We
are seeing larger container vessels, as well as larger bulk cargo and passenger ships,” he said.

With the fast container service connections between Tauranga and North Asia, North America and
South America, shippers in Australia and New Zealand have increasingly been using Tauranga as a
hub port. Containers transhipped from other New Zealand ports grew 54.7% compared with the
previous year. The Port now handles 40% of all containers in New Zealand.

New Zealand’s importers and exporters are within easy reach of Port of Tauranga’s national network of
ports, inland freight hubs and logistics services. The Group has interests in Northport in Whangarei and
PrimePort Timaru, as well as operating inland ports at Auckland and Rolleston near Christchurch.

Dividends
The Company today announced a further special dividend of 5.0 cents per share as part of its ongoing
plan to return up to $140 million to shareholders. This is the third year of a four-year capital restructure
plan.

Directors have also declared a final ordinary dividend of 7.0 cents per share, taking total ordinary
dividends to 12.7 cents per share, a 13.4% increase on the previous year. The record date for
entitlements is 21 September 2018 and the payment date is 5 October 2018.

Shareholders have received an annual equivalent return of 22.4% since the Company listed in May
1992.

Cargo trends
Imports increased 13.7% to 9.0 million tonnes and exports increased 8.2% to 15.4 million tonnes for
the year ended 30 June 2018. Total ship visits increased 5.8%.

Log exports increased 14.3% to 6.3 million tonnes. Sawn timber exports also increased 10.3% in
volume. Forestry products are still fetching record prices internationally.

Dairy product exports increased 4.0% to 2.3 million tonnes. Imports of dairy industry food supplements
increased 18.2%, and fertiliser imports increased 16.4%, reflecting a strong sector.

Other primary product sectors also fared well, with frozen meat exports increasing 11.3%, and apples
increasing 20.9%.

Cement imports increased 18.9% while steel exports increased 25%.

Oil product imports increased 9.3% and other bulk liquids increased 39.9%.

The number of cars and other vehicles imported at Port of Tauranga doubled compared with the
previous year.

Whilst kiwifruit volumes were down 5.8% due to a seasonal drop in green kiwifruit, an increasing
proportion of kiwifruit are being shipped via refrigerated container. The number of TEUs increased
27.6% compared with the previous year.

Operational developments
Port of Tauranga Chief Executive, Mark Cairns, said a ninth container crane had been ordered for
delivery in 2020.

3


Port of Tauranga’s container terminal now has 2,634 refrigerated container (reefer) connection points,
which are supplemented in the peak season with 12 generators each supplying power to 35 containers.

“We believe we have the largest reefer capacity in Australasia demonstrating the significance of the
volumes we are handling,” said Mr Cairns.

The Port also opened a new purpose-built coolstore at Mount Maunganui to handle kiwifruit and other
chilled cargoes.

The Port maintained its industry-leading record for productivity, with a net crane rate for the year to 30
June 2018 of 35.5 moves per hour (compared with the reported national average of 33.5 moves per
hour and Australian rate of 28.9 moves per hour).

Our people and their safety
Mr Cairns said the injury frequency rate among the Company’s staff reduced by 2% to 5.6 per million
hours worked, whilst the Company’s contractor injury frequency rate reduced nearly 70% to 9.3 per
million hours worked.

The Company has launched a wellbeing programme for all Port of Tauranga employees.

Care for the environment
Port of Tauranga has appointed an Environmental Manager and is making use of technology to reduce
carbon emissions and improve energy efficiency, including introducing electric vehicles where possible.

Stormwater management is a current priority, and infrastructure improvements continue as a long-
running resource consent application for the Mount Maunganui wharves is dealt with via an independent
commissioner.

The Company has also undertaken a comprehensive, independent carbon emissions audit to set
targets for future reductions in emissions.

We continue to support forestry industry efforts to reduce the amount of methyl bromide used at the
port ahead of the 2020 deadline for 100% recapture of the fumigant. We are encouraging exporters to
de-bark logs prior to arrival at the wharves to reduce the need for fumigation.

Sector and industrial relations issues
Port of Tauranga is proud of its industrial relations track record and works hard to maintain productive
employment relationships with our staff and unions. It is salient that more than 90% of our staff are
shareholders in the Company.

The Company has made a submission opposing certain aspects of the Employment Relations
Amendment Bill.

“Specifically, we believe the repeal of the ability for employers to opt out of Multi Employer Collective
Agreement (MECA) negotiations breaches international conventions,” said Mr Cairns.

“We believe this aspect of the Bill will see a lowest common denominator outcome and will most
certainly decrease productivity in the Port sector.”

Port of Tauranga continues to be concerned about the impact on New Zealand’s land transport network
of further sub-economic investments being made or contemplated by other New Zealand Ports. This is
not just an issue for the sector, but the economy as a whole.

4


“We support the Auditor-General’s advice to port companies to use fair value valuations to ensure major
capital investments are properly justified. Port of Tauranga seeks a minimum return of 8.5% after tax
on major capital investments;” said Mr Cairns.

Outlook
Port of Tauranga has commenced planning for the next stage of capacity expansion.

The Company has approximately 40 hectares of undeveloped, port-zoned land available for future
expansion. There are options to extend the quay length on both sides of the harbour, using Port-owned
land south of the existing berths.

Port of Tauranga operates in a complex environment with many factors outside its immediate control.

“We have implemented the policies, processes and practices we need to deliver superior customer
service, economic benefit to our communities and strong returns to our shareholders,” said Mr Cairns.

“We expect cargo growth to continue in the next year across most categories, and particularly
containerised cargo,” he said.

Guidance on full year earnings will be provided at the Annual Shareholder Meeting on 17 October 2018.

For further details, please contact:
Mark Cairns, Chief Executive
Port of Tauranga Limited
Mob: 021 978 887

David Pilkington, Chair
Port of Tauranga Limited
Mob: 021 609 635

About Port of Tauranga:
Port of Tauranga, headquartered in the Bay of Plenty, is New Zealand’s largest port and international freight
gateway. It operates wharves in Tauranga, Mount Maunganui and Timaru, as well as MetroPort Auckland, a
rail-linked inland port in South Auckland and MetroPort Christchurch, an intermodal freight hub in Rolleston.
The Port of Tauranga Group includes: Quality Marshalling (100% ownership), a cargo services
company; Coda (50% ownership), a freight logistics group; Northport (50% ownership), the deep water
commercial port in Whangarei; PrimePort Timaru (50% ownership), the commercial port in Timaru; Timaru
Container Terminal (50.1% ownership), which leases and operates the terminal at Timaru;
and PortConnect (50% ownership), an online cargo management system. For more information, please
visit www.port-tauranga.co.nz.

---

PORT OF TAURANGA LIMITED

Results for announcement to the market

Reporting Period 12 months to 30 June 2018
Previous Reporting
Period
12 months to 30 June 2017

Amount (000s) Percentage change
Revenue from ordinary
activities
NZ$283,726 +10.9%
Profit (loss) from ordinary
activities after tax
attributable to security
holder.
NZ$94,273 +13.0%
Net profit (loss)
attributable to security
holders.
NZ$94,273 +13.0%

Amount per security* Imputed amount per
security*
Final Dividend NZ7.0 cents 2.7222 cents
Special Dividend NZ5.0 cents 1.9444 cents

Record Date 21 September 2018
Dividend Payment Date 5 October 2018

Comments:

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APPENDIX 7 – NZSX Listing Rules
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Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumber
Date
Nature of event
BonusIf ticked,
Rights Issue
Tick as appropriate
Issue
state whether:Taxable
/ Non TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change
/
whether:
InterimYear
/
SpecialDRP Applies
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
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class of securities
If unknown, contact NZX
Details of securities issued pursuant to this eventIf more than one class of security is to be issued, use a separate form for each class.
Description of theISIN
class of securities
If unknown, contact NZX
Number of Securities toMinimum
Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
Tick if
provide an
pari passu
ORexplanation
Strike price per security for any issue in lieu or date
of the
Strike Price available.
ranking
Monies Associated with Event
Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Amount per securityPayment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
SupplementaryAmount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike priceWithholding Tax(Give details)
Foreign
FDP Credits
Withholding Tax(Give details)
Timing
(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of application closing date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
21 September 20185 October 2018
$$0.004861$0.027222
$
NZD$0.012354
$47,619,241.53
Date Payable
5 October 2018
Enter N/A if not
applicable
NZPOTE0003S0
In dollars and cents
Retained profits
$0.07
07 572 889907 572 880023082018
ORDINARY SHARES
EMAIL: announce@nzx.com
Notice of event affecting securities
PORT OF TAURANGA LIMITED
S G GRAYDIRECTORS RESOLUTION

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APPENDIX 7 – NZSX Listing Rules
Number of pages including this one
(Please provide any other relevant
NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10. details on additional pages)
For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is required.
Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumber
Date
Nature of event
BonusIf ticked,
Rights Issue
Tick as appropriate
Issue
state whether:Taxable
/ Non TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change
/
whether:
InterimYearSpecia
/
DRP Applies
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISIN
class of securities
If unknown, contact NZX
Details of securities issued pursuant to this eventIf more than one class of security is to be issued, use a separate form for each class.
Description of theISIN
class of securities
If unknown, contact NZX
Number of Securities toMinimum
Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
Tick if
provide an
pari passu
ORexplanation
Strike price per security for any issue in lieu or date
of the
Strike Price available.
ranking
Monies Associated with Event
Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Amount per securityPayment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
SupplementaryAmount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike priceWithholding Tax(Give details)
Foreign
FDP Credits
Withholding Tax(Give details)
Timing
(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of application closing date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
21 September 20185 October 2018
$$0.003472$0.019444
$
NZD$0.012354
$34,013,743.95
Date Payable
5 October 2018
Enter N/A if not
applicable
NZPOTE0003S0
In dollars and cents
Retained profits
$0.05
07 572 889907 572 880023082018
ORDINARY SHARES
EMAIL: announce@nzx.com
Notice of event affecting securities
PORT OF TAURANGA LIMITED
S G GRAYDIRECTORS RESOLUTION

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Presentation to Analysts
24 August 2018

Disclaimer
Theinformationinthispresentationisforinformationpurposesandhasbeen
preparedbyPortofTaurangaLimitedwithduecareandattention. However,
neithertheCompany,noranyofitsDirectors,officers,employees,contractorsor
agents,shallhaveanyliabilitywhatsoevertoanyperson,foranylossofdamage
resultingfromtheuseorrelianceonthispresentation.
Theinformationcontainedinthispresentationis notintendedtobereliedupon
asadvicetoinvestorsanddoesnottakeintoaccounttheinvestmentobjectives,
financialsituationorneedsof anyparticularinvestor.
Pastperformanceisnotindicativeoffutureperformanceandnoguaranteeof
futurereturnsis impliedorgiven.
Theinformationcontainedinthispresentationshouldbeconsideredin
conjunctionwiththeCompany’slatestauditedfinancialstatementswhichare
availablein theinvestorsectionof ourwebsite.

Highlights
•Group NPAT up 13.0%
•Revenue up 10.9%
•Total trade up 10.2%
•Container volumes up 8.9%
•Transhipmentup 23.3%
•Imports up 13.7%
•Exports up 8.2%
•Ordinary dividends up 13.4%
•Asset revaluation increases by $226 million

Highlights
•Hub port role gains momentum, with strong growth in
transhipmentfrom other New Zealand ports and
Australia
•Company’s contractor’s injury frequency rate
reduced 69% to 9.3 per million hours worked

Current Focus
•Planning for the next stage of growth – maximising
capacity within current footprintto handle up to three
million TEUs (engaged external expert –TBA Group)
•Enhancing environmental performance
•Maintaining long-term customer relationships for
sustainable growth
•
Exploring new and emerging cargo categories, egcars,
and new potential Eastern Bay of Plenty cargoes.

Group Net Profit After Tax up 13.0%
$94,273
$77,314
$83,441
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
201620172018

Parent Net Profit After Tax up 13.2%
$68,796
$63,344
$77,882
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
201620172018

Parent EBITDA up 11.1%
$125,712
$135,498
$150,476
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
201620172018
$000s

Ordinary Dividends up 13.4%
10.6
11.2
12.7
0
2
4
6
8
10
12
14
2016*20172018
* Adjusted for 5:1 share split

Breakdown of Revaluation Increase
June 2015 to June 2018
Asset$000
Land150,087*
Buildings9,738
Harbour Improvements61
Capital Dredging18,185
Hardstanding7,873
Wharves40,014
Total Movement 225,958
* Increased by $63 million in 2017

Net Debt / Net Debt +Equity
25.8%
28.7%
26.2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
201620172018

Total Trade up 10.2%
20,120
22,194
24,458
0
5,000
10,000
15,000
20,000
25,000
30,000
201620172018

Container Volumes up 8.9%
954,006
1,085,987
1,182,147
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
1,200,000
201620172018

Source. Ministry of Transport
NZ Port’s Container Volumes by Quarter

TranshippedContainer Volumes up 23.3%
187,670
245,896
303,284
100,000
150,000
200,000
250,000
300,000
350,000
400,000
201620172018

NZ TranshippedContainer Volumes up
54.7%
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
AucklandLytteltonMarsden
Point
BluffNapierNelsonPort
Chalmers
TimaruWellington
FY2017FY2018
TEU

Exports – Logs up 14.3%
4,572
5,490
6,276
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
201620172018

Exports – Dairy up 4.0%
2,119
2,223
2,312
0
500
1,000
1,500
2,000
2,500
201620172018

Imports – Fertiliserup 16.5%
472
474
552
0
100
200
300
400
500
600
201620172018

Oil Products –Fuel up 9.3%
1,300
1,436
1,569
0
500
1,000
1,500
201620172018

Imports – Grain & Dairy Feed
Supplements up 16.2%
1,073
1,156
1,343
0
500
1,000
1,500
201620172018

Kiwifruit Volumes
m
3
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
201620172018

Passenger Vessels
81 visits in FY18, expecting 110 in FY19

Subsidiaries & Associate Companies

Subsidiaries & Associates
Net Profit After Tax
$16,391
$14,645
$13,970
$0
$5,000
$10,000
$15,000
$20,000
201620172018
$000s

Associate & Subsidiary Companies
NPAT up 11.9%
2018
$000
2017
$000
Quality Marshalling Limited2,3121,531
Northport Limited9,1919,082
PrimePort Timaru Limited1,5231,700
Timaru Container Terminal Limited651190
Coda Group LP2,7682,223*
PortConnect Limited(51)(81)
Total Subsidiary and Associate Income 16,39414,645
*After expensing $0.602 million earn out payment for MetroBox

Northport
• Earnings up 1.2%
• Handled 7,975 TEU
• MSC Container service calling fortnightly

Coda Group
•
Earnings up $0.545 million to $2.768 million
• MetroBoxcontribution down on PCP
• Secured Westland Dairy contract
• POT building a 19,000m2 warehouse at MetroPortChristchurch

PrimePort Timaru
• Earnings down $0.177 million to $1.523 million
•
Tug impairment of $1.6 million
•Purchasing new Tug with delivery in 2019

TimaruContainer Terminal
• Earnings up $0.461 million to $0.651 million
• Handled 89,184 TEUs

Quality Marshalling
• Earnings up $0.781 million to $2.312 million
• Included Gain on Sale of $0.456 million
• Secured Reefer monitoring contract at Tauranga Container
Terminal in March 2018

Integrated Reporting 2018

Licence to Operate

Environment
•Investing in energy-efficient equipment (egelectric
vehicles, LED lighting)
•Utilisingtechnology for dust suppression
•Renovating stormwaterinfrastructure
•New Environmental Manager appointed
•Biosecurity initiatives in partnership with
MPI, KVH and other primary producers

Outlook 2019

Shipping Line Services

Eastern Bay of Plenty Potential Cargos
•A number of bottled water plants
•Feng Ling Glulam Plant
•PoutamaDairy Processing Plant

Log Exports

Cars

Parent Capital Expenditure 2015-2019
$48,700
$63,323
$60,166
$16,788
$60,000
$0
$20,000
$40,000
$60,000
$80,000
20152016201720182019F

Full Build Out 2.8-3M TEUs

Investor Day
Tauranga Tuesday 13 November 2018

THANK YOU

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ANNUAL REPORT 2018
NEW ZEALAND’S
CARGO GATEWAY
TO THE WORLD

TABLE OF
CONTENTS
2018 Highlights 1
National Network 2
Services and Infrastructure 4
Integrated Reporting 6
Chair and Chief Executive’s Report to Shareholders 8
Our Journey 14
Purpose and Value Creation Model 18
Capital #1 - Relationships 20
Capital #2 - People 26
Capital #3 - Skills and Knowledge 32
Capital #4 - Environment 40
Capital #5 - Assets and Infrastructure 50
Capital #6 - Finances 54
Board of Directors 58
Senior Management Team 60
Financial Statements 62
Directors’ Responsibility Statement 63
Independent Auditor’s Report 64
Corporate Governance Statement 101
Statutory Information 102
Financial and Operational Five Year Summary 110
Company Directory Inside Back Cover
2018
HIGHLIGHTS
Group NPAT up
13.0%

Revenue up
10.9%

Total trade up
10.2%

Container volumes up
8.9%

Transhipment up
23.3%
(25.7% of all TEUs)
Imports up
13.7%

Exports up
8.2%

Ordinary dividend up
13.4%

Asset valuation increased by
$226

Subsidiary and Associate
Companies earnings up
11.9%
Contractors’ Total Recordable Injury
Frequency Rate down nearly
69%

Tertiary scholarships awarded
14

Crane productivity rate of
35.5

Ship visits up
5.8%

to 9.3 per
million
hours
worked
million
moves/hour,
well above
the national
average
TEU = Twenty Foot Equivalent Unit - a standard measure of shipping containers
1
PORT OF TAURANGA ANNUAL REPORT 2018

Operated by
Parent Company
and KiwiRail
• Inland port in the heart of
Auckland’s commercial and
industrial area, connected
by rail to Tauranga and
Hamilton

50% ownership
with Kotahi
• Freight logistics group
incorporating Tapper
Transport, Dairy Transport
Logistics and MetroPack
• 50% shareholding in
MetroBox
• Operates New Zealand’s
largest intermodal freight
hub at Otahuhu in Auckland
• Operates freight hub at
Crawford Street, Hamilton
50% ownership
with Marsden
Maritime Holdings
• Deep water commecial port
near Whangarei

50% ownership
with Ports of
Auckland


• Online cargo
management system
METROPORT
AUCKLAND
Operated by
Timaru Container
Terminal
• Intermodal freight hub at
Rolleston
• Rail connections to Timaru
Container Terminal and rest
of South Island
• New warehouse being built
for Coda Group
50.1% ownership
with Kotahi
• Direct links to Tauranga
• Operates MetroPort
Christchurch at Rolleston
100% ownership
• Specialist cargo handling
services company with
operations at Tauranga

and Timaru.
50% ownership
with Timaru District
Holdings
• Commercial port in Timaru
• Bulk cargoes including major
cement handling facility
• Developing new oil terminal
METROPORT
CHRISTCHURCH
56
31
5
236
16
4
6
13
Christchurch
Timaru
Invercargill
Key
State Highway 1
State Highway 2
Golden Triangle

Rail Network
Wellington
Napier
Hamilton
Auckland
Marsden Point
Tauranga
5
4
6
3
2
1
PARENT COMPANY
• New Zealand’s largest port and international freight gateway
• Container terminal, bulk cargo wharves and bunkering
• Extensive cargo storage and handling facilities
• Rail connections to Hamilton, Auckland and the central North Island
• Extensive road connections
1
THE NATIONAL
NETWORK
THAT DELIVERS
GLOBAL ACCESS
New Zealand’s importers and exporters
are within easy reach of Port of
Tauranga’s national network of ports,
inland freight hubs and logistics services.
5
3
2
PORT OF TAURANGA - ANNUAL REPORT 2018
PORT OF TAURANGA GROUP – NATIONAL NETWORK

HIGHLY
PRODUCTIVE
SERVICES AND
INFRASTRUCTURE
Our international cargo gateway at
Tauranga is one of the world’s most
efficient ports and the only New Zealand
port able to accommodate the largest
container vessels to visit.
32%
Of all New Zealand log
and sawn timber exports
1

208
Permanent staff
190
Hectares in Tauranga
8
Cranes
46
Straddle
carriers
1
Source: NZ Forest Owners Association
2
Source: Ministry of Transport
2.8km
Total quay length with 14 berths
14.5m
Shipping channel depth
2,634
Dedicated reefer connections
and 6,343 TEU total ground slots
1,747
Ship visits
40%
Of New Zealand
containers handled
2
4
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PORT OF TAURANGA - ANNUAL REPORT 2018
PORT OF TAURANGA – SERVICES AND INFRASTRUCTURE

INTEGRATED
REPORTING
We have adopted a different format
this year in response to the NZX’s
updated Corporate Governance Code.
We have based our report on the
internationally recognised Integrated
Reporting framework
(www.integratedreporting.org).
The Integrated Reporting framework
examines the capitals or resources
that we use or affect, and their
interdependencies. We have identified
the following categories as relevant to
Port of Tauranga:
• Relationships
• People
• Skills and knowledge
• Environment
• Assets and infrastructure
• Finances.
We explain how we use these six
forms of capital to create value for
our shareholders, customers and the
community in the short, medium and
long-term.
Welcome to Port of Tauranga’s
Annual Report for the year
ended 30 June 2018.
We still have some way to go to be able
to fully report on our activities in the
manner prescribed in the Integrated
Reporting guidelines.
We will refine our approach in future,
especially in identifying the factors
material to our stakeholders and the
significance of those factors to our
success. For this report, we have
included, but not tested, the matters
we believe are material to our ability
to create value. We have relied on
our knowledge from regular formal
and informal consultation with our
customers, partners and investors,
as well as broader trends. In future,
we will engage with our stakeholders
to ensure we are responding to their
priority needs and interests.
It is the very beginning of this journey
for us, but we believe it will benefit
all our stakeholders to transparently
evolve our approach over time.
The financial statements within this
report have been independently
audited, but we have not sought
external assurance of the non financial
contents. Where appropriate, we
have indicated where more detailed
information can be obtained (in many
cases via our website,
www.port-tauranga.co.nz).
We are confident in the integrity of
the report and its alignment with the
principles of the Integrated Reporting
framework.
David Pilkington
Chair
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PORT OF TAURANGA - ANNUAL REPORT 2018
INTEGRATED REPORTING

Chair and Chief Executive’s
Report to Shareholders
Port of Tauranga had another
excellent year, handling nearly 24.5
million tonnes of cargo, including
almost 1.2 million TEUs
1
, and
producing a record Group Net Profit
After Tax of $94.3 million.
Our expansion programme to
accommodate larger vessels,
coupled with New Zealand’s buoyant
economy, has resulted in the 10.2%
increase in cargo volumes. Revenue
increased 10.9% to $283.7 million.
Transhipment, where containers
are transferred from one service
to another at Tauranga, has grown
23.3% in the past year, demonstrating
the success of the hub and feeder
port model in New Zealand.
International hub port
The growth in transhipment is a direct
result of Port of Tauranga’s six year
investment in building capacity to
become big ship capable, completed
in 2016.
With fast connections between
Tauranga and North Asia, North
America and South America,
Australian and New Zealand shippers
have increasingly been using
Tauranga as a hub port. Containers
transhipped from other New Zealand
ports increased 54.7% compared with
the previous year.
Overall, transhipped containers now
make up 25.7% of total TEU.
We are pleased to present our annual report on the
activities, performance and outlook for New Zealand’s
largest, fastest growing and most productive port.
BUILDING
ON SUCCESS
Mark Cairns
Chief Executive
David Pilkington
Chair
1
TEU =Twenty Foot Equivalent Units
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PORT OF TAURANGA - ANNUAL REPORT 2018
CHAIR AND CHIEF EXECUTIVE’S REPORT TO SHAREHOLDERS

It is not just larger container ships
that are calling. The mega cruise ship
Ovation of the Seas, at 347 metres
long and carrying 4,900 passengers
supported by 1,500 crew members,
visited three times last summer and will
call seven times in the coming season.
We also had an overnight visit from the
trans-Atlantic ocean liner Queen Mary 2,
one of the largest and most luxurious
cruise ships to ever visit Tauranga.
Trade trends
Imports increased 13.7% to 9 million
tonnes and exports increased 8.2% to
15.4 million tonnes for the year ended
30 June 2018.
Log exports increased 14.3% to 6.3
million tonnes. Sawn timber exports
also increased 10.3% in volume.
Forestry products are still fetching
record prices internationally.
Dairy product exports increased 4.0%
overall to 2.3 million tonnes. Imports
of dairy industry food supplements
increased 18.2%, and fertiliser imports
increased 16.5%, reflecting a strong
agricultural sector.
Other primary produce sectors also
fared well, with frozen meat exports
increasing 11.3%, and apples
increasing 20.9%.
Cement imports increased 18.9%,
while steel exports increased 25%.
Oil product imports increased
9.3% and other bulk liquids
increased 39.9%.
The volume of cars and other vehicles
imported at Port of Tauranga doubled
compared with the previous year.
Whilst kiwifruit volumes were down
5.8%, an increasing proportion is being
shipped via refrigerated container.
The number of TEUs increased 27.6%
compared with the previous year.
Health, safety and the environment
We are proud of the safety culture that
is developing in our business. This year
we initiated a project to extend and
improve the health aspect of our health
and safety programme.
With guidance from Toi Te Ora Public
Health, we launched Ship Shape, a
wellbeing programme for all Port of
Tauranga employees. The programme
incorporates the Company’s existing
benefits – such as annual medical
checkups, free flu vaccinations and
health insurance – and will develop new
initiatives based on staff feedback and
priorities.
We want to be as successful in our
environmental performance as we
have been in our safety outcomes. We
have undertaken a comprehensive,
independent carbon emissions audit
which will help us measure future
improvements.
We have expanded our internal
capability with the recruitment of an
Environmental Manager and we are
making use of technology to reduce
carbon emissions, improve energy
efficiency and keep the harbour and
our city clean.
Stormwater management is a current
priority. We have increased sweeping of
the log yards and installed stormwater
screening chambers to ensure dust
and debris is prevented from entering
the harbour. We are also stepping up
our efforts to improve air quality and
reduce energy use.
We continue to support forestry
industry efforts to reduce the amount
of methyl bromide used in fumigation at
the port. We are encouraging exporters
to de-bark logs prior to arrival at the
wharves.
Operational highlights
We established an eight crane fleet
at the Tauranga Container Terminal
last year and we have ordered a ninth
crane which will be delivered in 2020.
We continue to increase container
terminal capacity by relocating and
reorganising buildings and activities
where it is efficient to do so. Last year’s
relocation of Oji Fibre Solutions to
a new purpose-built shed freed up
space for an additional 820 container
ground slots right next to the berths.
We now have a total of 2,634
refrigerated container connection
points, which are supplemented in the
peak season with 12 generators, each
supplying power to 35 containers. This
is believed to be the largest reefer
capacity in Australasia.
Associate and Subsidiary
Companies
Quality Marshalling continues to
diversify its business in niche cargo
handling and container services.
Quality Marshalling has secured the
contracts to operate the Tauranga
Container Terminal’s straddle carrier
maintenance workshop as well as
refrigerated container monitoring.
We are building a new warehouse
for Coda Group at our MetroPort
Christchurch inland freight hub. Coda
will lease the facilities for container
packing and distribution. The new
premises comprise a 19,000m
2

warehouse, a 2,200m
2
canopy
and 210m
2
office.
MetroPort Christchurch is linked by rail
to the Timaru Container Terminal and
the rest of the South Island.
The container terminal’s landlord is
PrimePort Timaru, in which Port of
Tauranga has a 50% shareholding. The
terminal had another record year with
volumes up 5% on the prior year.
PrimePort Timaru has been buoyed by
news of a major new bulk fuel terminal
to be built at the port. The new facility
will join a major cement handling facility
opened by Holcim in early 2016.
Log exports continue to grow through
PrimePort, increasing 19% from the
previous year.
Meanwhile, Northport has seen an
increase in container traffic following
the introduction of the first scheduled
container service in 2017, and forest
product exports continue to set new
volume records.
We are making
use of technology
to reduce carbon
emissions, improve
energy efficiency and
keep the harbour
and our city clean.
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PORT OF TAURANGA - ANNUAL REPORT 2018
CHAIR AND CHIEF EXECUTIVE’S REPORT TO SHAREHOLDERS

Governance
Alison Andrew was appointed to
the Board of Directors in April 2018
following Bill Baylis’ retirement after
11 years. Alison is currently Chief
Executive of Transpower, has held
senior executive roles across various
industry sectors and has been a
Director of Genesis Energy.
Our majority shareholder, Quayside
Holdings, has appointed Director Rob
McLeod to the Board following the
retirement of Michael Smith after 16
years. In addition to Quayside Holdings,
Rob is currently on the Board of the
Sanford Group and is a former Oceania
CEO of Ernst & Young and Chair of
Ernst & Young New Zealand.
Alison Andrew and Rob McLeod will
be seeking election at the 2018 Annual
Meeting.
At the Annual Meeting, Directors Julia
Hoare and Doug Leeder will retire by
rotation and seek re-election. Both
have the unanimous support of the
Board.
External operating environment
In February 2018, the new Government
announced an Upper North Island
Supply Chain Review. A working group
will review the current supply chain,
advise on priorities for transport
investment and explore options
for moving the location of Ports of
Auckland. As a key stakeholder in this
review, Port of Tauranga expects to be
consulted by the working group.
Port of Tauranga is proud of our
industrial relations record and our
relationships with staff and unions.
However, we have concerns about
aspects of the Government’s
significant changes to the industrial
relations framework. Port of Tauranga
has made a submission opposing
certain aspects of the Employment
Relations Amendment Bill. Specifically,
we are concerned with the repeal
of the ability for employers to opt
out of Multi Employer Collective
Agreement (MECA) negotiations.
This breaches the voluntary nature
of collective bargaining required
under the International Labour
Organisation’s Right to Organise and
Collectively Bargain Convention that
New Zealand has ratified. We believe
the Bill will undermine New Zealand’s
competitiveness through increased
costs, decreased productivity and
increased business complexity.
Sector performance
The Office of the Auditor-General has
recently raised a number of issues
identified in its audit of the New Zealand
port sector
2
. It found considerable
variation in port companies’ approach
to valuations, making it difficult to see
whether capital expenditure was a
good use of shareholders’ funds.
We support the Office’s advice to
port companies to use fair value,
based on the expected cash flows
to be generated. This is the process
we adopt for the justification of major
capital investments.
In Port of Tauranga’s case, we seek a
minimum return of 8.5% after tax.
We expect cargo
growth to continue in
the next year across
most categories
and particularly in
containerised cargo.
Outlook
Port of Tauranga operates in a
complex environment with many
factors outside its immediate
control. However, we believe we have
implemented the policies, processes
and practices required to deliver
excellence in service to our customers,
economic benefit to our communities
and strong returns to our shareholders.
We expect cargo growth to continue in
the next year across most categories
and particularly in containerised
cargo. We will invest appropriately in
the infrastructure required to manage
these volumes and remain confident
that our current footprint allows for
significant expansion without the need
for expensive reclamation.
Recognition
We were very proud to see our long-
serving Chief Financial Officer (CFO),
Steve Gray, recognised as CFO of
the Year in the 2017 Deloitte Top
200 Business Awards. Steve’s sound
judgement and steady hand have
helped steer Port of Tauranga on its
successful journey.
We would like to acknowledge and
thank our loyal staff and contractors,
whose dedication, innovation and
enthusiasm make Port of Tauranga the
company it is today.
In recognition of our employees’
outstanding contribution to the
success of the business, we are
pleased to announce an enhanced
share ownership scheme for
permanent staff.
Individuals will be able to obtain up
to $5,000 worth of shares at a 30%
discount, utilising interest-free loans
over three years. More than 90% of our
staff are already shareholders, so we
expect this will be welcome news to
the team.
Finally, we thank our customers,
service providers, business partners
and friends in the community for their
ongoing support in making Port of
Tauranga New Zealand’s Port for the
Future.
David Pilkington
Chair
Mark Cairns
Chief Executive
2
https://oag.govt.nz/2018/port-companies-audits
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PORT OF TAURANGA - ANNUAL REPORT 2018
CHAIR AND CHIEF EXECUTIVE’S REPORT TO SHAREHOLDERS

FOLLOWING
OUR PATH
WITH
PURPOSE
Port of Tauranga’s journey
to be New Zealand’s Port for
the Future began more than
two decades ago.
1992
Market
capitalisation
$80M
1996
Market
capitalisation

$112M
2000
Market
capitalisation
$382M
2009
Entered 10 year operating
agreement with major
shipper Carter Holt
Harvey Lodestar
1998
Opening of Tauranga
Container Terminal
1999
MetroPort inland
port opened in
Auckland
2000
Purchased
50% share of
Northport
1992
Listed on the NZ
Stock Exchange
2010
Purchase of trucking and
freight handling company
Tapper Transport
2013
Tauranga Container
Terminal wharf extended by
nearly a third, to 770 metres
2013
Market
capitalisation
$1,864M
2014
Purchased 15
hectare site near
Christchurch for
inland freight hub
2014
Acquired 50% shareholding
in PrimePort Timaru

2014
Agreed 10 year
container volume
commitment with NZ’s
largest exporter, Kotahi
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PORT OF TAURANGA - ANNUAL REPORT 2018
OUR JOURNEY

2015
Coda Group formed, merging Tapper
Transport, Priority Logistics, MetroBox
and Kotahi’s Dairy Transport Logistics
2015
Arrival of two
74-bollard pull tugs
2016
Signed 10 year
agreement
with kiwifruit
exporters Zespri
International
2016
Dredging of
Tauranga Harbour
shipping channels
to 14.5 metres
2016
Market capitalisation
$2,654M
2016
Largest-ever container ship
to visit NZ (Maersk Antares,
11,294 TEU) calls at Tauranga
2017
Completion of
22,000m
2
storage shed
for Oji Fibre Solutions
(formerly Carter Holt
Harvey Lodestar)
2017
Tauranga Container
Terminal volumes
exceed 1 million TEU
Future
Expand role as
hub port and
New Zealand’s
cargo gateway
to the world.
2018
Market
capitalisation
$3,471M
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PORT OF TAURANGA - ANNUAL REPORT 2018
OUR JOURNEY

ASSETS &
INFRASTRUCTURE
ENVIRONMENT
SKILLS &

KNOWLEDGE
PEOPLE
RELATIONSHIPS
FINANCES
INPUTS
Our purpose
FACILITATING THE
MOST EFFICIENT
AND SUSTAINABLE
TRADE TO AND FROM
NEW ZEALAND
Our values
SAFETY, INTEGRITY, INNOVATION, COMMUNICATION, TEAMWORK
A
C
T
I
V
I
T
I
E
S
O
U
T
C
O
M
E
S
APPROPRIATE RISK
AND SUSTAINABLE
RETURNS FOR OUR INVESTORS
Enduring partnerships

with key stakeholders
Highly effective logistics networks
A proud and motivated workforce
Growing local, regional and
national communities
Responsible environmental
stewardship
G
O
V
E
R
N
A
N
C
E
K
A
I
T
I
A
K
I
T
A
N
G
A
CORE
values
CAN DO
attitude
STRATEGIC
thinking
Kaitiakitanga: the Maori concept of
guardianship, of the sea, sky and land
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PORT OF TAURANGA - ANNUAL REPORT 2018
PURPOSE AND VALUE CREATION MODEL

RELATIONSHIPS
Port of Tauranga’s relationships
with customers, communities,
employees and other stakeholders
are characterised by their longevity
and a desire for mutual success.
Luxury ocean
liner puts Port
to the test
The luxurious flagship of the Cunard
Line, Queen Mary 2, stayed overnight at
Port of Tauranga in March 2018 during
her maiden 13-night cruise around
New Zealand.
The visit presented Port of Tauranga
with logistical challenges. The
345-metre long ship’s deeper than
usual draught meant some juggling of
other ships and cargoes was required to
accommodate the large ship alongside
the Mount Maunganui wharves.
Our loyal customers and service
providers shared Port of Tauranga’s
can do attitude to make it work. Port
of Tauranga’s Manager Operations
Services and Security, Ricki Ross,
says their understanding and flexibility
ensured the visit went off without a hitch.
“Everyone really pulled together to make
sure it was a smooth visit for the Queen
Mary 2, while minimising the disruption
to our day-to-day operations,” says Ricki.
“It wasn’t easy and there were lots of
last minute changes, but with plenty
of internal and external support we
really rolled out the red carpet for the
passengers and crew.”
Cruise ship visits are an important
contributor to the Bay of Plenty tourism
industry, with passengers spending an
estimated $59 million in the year to
June 2017 .
Port of Tauranga hosted 83 cruise ship
visits in the 2017-2018 summer season.
This will increase to an estimated 113
calls this summer, including seven visits
by the giant Ovation of the Seas carrying
up to 4,900 passengers each time.
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PORT OF TAURANGA - ANNUAL REPORT 2018
CAPITAL #1 - RELATIONSHIPS

The Company’s innovative approach
to typical supply chain challenges
has helped build our reputation as
a strong business that supports our
stakeholders’ interests.
Business partners for the future
Our long-term freight agreements
with major exporters such as Oji
Fibre Solutions, Kotahi and Zespri
International give us the certainty
to make rational investments for
the future.
Our customers often refer to our can
do attitude when it comes to logistical
challenges or finding solutions to tricky
problems. This approach to doing
business was evident in March 2018
when Port of Tauranga hosted the
grand Queen Mary 2 for an
overnight visit.
Working and living in the
Bay of Plenty
The Port’s activities have wide-reaching
benefits for the Bay of Plenty economy
and beyond, including the direct
and indirect employment of tens of
thousands of New Zealanders.
On top of this, Port of Tauranga has an
important role to play as an investor in
community wellbeing. The Company
sponsors and donates to causes in the
arts, sport, environment, education and
business sectors.
Cargo volumes continued
to grow on the back of long
term freight agreements
with our biggest customers,
including Kotahi, Zespri and
Oji Fibre Solutions

1,200
people hosted on port tours,
with plans to expand next
summer


Joined Project Tauranga,
the public/private
partnership to fund
community projects
Investment in a range of
community and regional
infrastructure projects, such
as the Bay Oval upgrade
and support boats for the
Tauranga Yacht and Power
Boat Club
RELATIONSHIPS
Continued
Partnerships to build
community strength
In the past year we have been
refocusing our sponsorship portfolio
to steer investment towards the
provision and protection of longer-term
infrastructure and equipment. In the
recent past, we have sponsored the
construction of the Pilot Bay boardwalk
in Mount Maunganui as well as a
specialist winch on the Bay of Plenty
Trustpower TECT rescue helicopter.
Port of Tauranga and other local
sponsors recently paid for the
installation of state-of-the-art
floodlighting at the Bay Oval
sportsground next door at Blake
Park, Mount Maunganui. The upgrade
elevated the stadium to the busiest
international cricket facility in the
country in the 2017/2018 season.
Port of Tauranga has purchased two
patrol boats for some other neighbours,
the Tauranga Yacht and Power Boat
Club. The boats will be used for
supporting young sailors learning on
the harbour and other club operations.
Support of regional initiatives
In 2018, we formalised our role as an
official supporter of Project Tauranga, a
partnership between Tauranga
City Council and local businesses to
fund community projects.
This role will allow us to better identify
suitable investments in the future and
ensure we are supporting the things
that really matter to local communities.
One of our first Project Tauranga
initiatives is one close to home – the
enhancement of walkways on Mauao,
the revered mountain that stands
sentinel to the entrance of Tauranga
Harbour and the port.
“We are keen to make a difference
where it counts,” says Mark. “Project
Tauranga is a great way to connect
with the city and get some meaningful
projects completed.”
The Port has committed to supporting
a variety of initiatives, but the first and
foremost is $30,000 to support the
maintenance of walking tracks on
Mauao.
“Mauao is Tauranga’s identifying
landmark. It is visited by people nearly
two million times a year including our
own staff and an increasing number of
cruise ship passengers, and it is held in
reverence by tangata whenua.
We wanted to help take care of it,”
says Mark.
Port of Tauranga’s main shareholder is
Quayside Holdings, the investment arm
of the Bay of Plenty Regional Council.
Quayside received dividends of nearly
$62.3 million over the past year. The
total payout has been more than $700
million since the company was listed
on the New Zealand Stock Exchange
in 1992.
A $200 million infrastructure fund has
been established to help the Council
invest in iconic assets. The fund was
set up in 2008 through a share issue by
Quayside, which owns 54.16% of Port of
Tauranga’s shares.
The fund has been used to kickstart
projects such as the new tertiary
education campus in Tauranga city,
redevelopment of Opotiki Harbour
and the Scion Science Innovation Park
in Rotorua.
Port of Tauranga
contributed to the
investment of state-of-
the-art floodlighting
at the Bay Oval
Mark Cairns and
Nick Wrinch from
Tauranga Yacht Club
with the new patrol
boats
“Much of our success is due to the open and
honest relationship we have with Port of
Tauranga. They have seen the potential in our
company, our innovation and flexible work
practices. We have similar philosophies in that
we give our people authority and responsibility.”
Don Howard, Managing Director, Independent Stevedoring Limited
Sponsorship investment
2013/14 2014/15 2015/16 2016/17 2017/18
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PORT OF TAURANGA - ANNUAL REPORT 2018
CAPITAL #1 - RELATIONSHIPS

A long time link
with Liebherr
Port of Tauranga has a special long-
term relationship with Liebherr that
spans 40 years.
The independent, family-run business
has been the sole supplier of Port
of Tauranga’s ship-to-shore gantry
container cranes since the first was
purchased in 1978. A further eight
cranes have followed.
With another purchase imminent,
Liebherr Group Vice Chair Dr Isolde
Liebherr, her daughter and senior
executive Patricia Rüf and Liebherr
Container Cranes Managing Director
Pat O’Leary visited Port of Tauranga
in March 2018. They were impressed
by the scale of the port and its
picturesque location.
“I was very impressed by the size of the
port,” said Patricia. “A port embedded
in such beautiful scenery is very rare.”
Port of Tauranga Chief Executive,
Mark Cairns, believes the relationship
with Liebherr has endured because of
shared core values.
“Liebherr is constantly innovating
and produces a quality product that
performs consistently and reliably.
These are all qualities we seek to
adhere to ourselves,” he says.
Events for our community
Port of Tauranga was a founding
supporter of the biennial Tauranga
Arts Festival and until recently was the
naming rights sponsor of the Port of
Tauranga Half, a popular triathlon, for
29 years.
Port of Tauranga staff and customers
are enthusiastic fundraisers and collect
donations for a range of causes close
to their hearts, including the Cancer
Society’s Daffodil Day, Prostate Cancer
Foundation and the Red Puppy Guide
Dog Appeal. In April, the Port’s annual
Gibo’s Fun Fishing Tournament for
staff, customers and suppliers raised
a record $4,500 for the Waipuna
Hospice.
Our annual Christmas donations (in lieu
of customer gifts) went to the Tauranga
Community Foodbank ($6,000) and
this year’s staff-nominated charity,
Good Neighbour ($4,000).
The nature of Port of Tauranga’s
operations means they are often
hidden from public view for safety
reasons. Web cameras on our website
allow people outside the port to see
what’s happening in real time and the
very popular annual bus tours allow
the public to see what happens on the
other side of the port gates. Due to their
popularity, the tour programme will
be expanded.
Working with iwi
We work both formally and informally
with the three iwi that have mana
whenua status in Tauranga Moana –
Ngāi Te Rangi, Ngāti Ranginui and
Ngāti Pūkenga.
Our formal partnerships include
the Ngā Mātarae Charitable Trust,
established to balance the impact
on the cultural and spiritual values
of local Māori from our harbour
dredging project.
The Trust has a scholarship
programme administered by the Port
and sponsors projects to improve
the wellbeing of Te Awanui Tauranga
Harbour.
One of these projects was an initiative
to relocate pipi within the harbour,
involving local schoolchildren and
University of Waikato researchers.
RELATIONSHIPS
Continued

Sponsorship
Iwi – 14 scholarships
provided to students
with iwi links to Tauranga
Moana through the
Turirangi Te Kani
Memorial and Ngā
Mātarae Charitable Trust
scholarship schemes
Facebook page – total page
likes increased
16.4%
14
Iwi perform
a blessing at the
opening of the newly
constructed
Shed 1
Funding good causes
During the financial year, Port of Tauranga made
donations to: HeartKids, Otumoetai College
Young Enterprise Scheme, St John Ambulance
(new Tauranga headquarters), Tauranga Volunteer
Coastguard, Brain Injured Children Trust, Wish4Fish,
CanTeen, Otumoetai Swimming Club, Seaweek,
Merivale Community Inc Christmas event, Eastern
BOP Brass Band, Te Tauranga o Nga Waka Kapa
Haka, Tauranga Sport Fishing Club, One Base Fishing
Competition, Autism New Zealand (Tauranga/
Mount), Ballance Farm Environment Awards, Huria
Marae, Mount Maunganui Runners and Walkers Half
Marathon, Bethlehem School, Papamoa Primary
School, Arataki/Omanu Scout Group, Mount
Maunganui Tennis Club, Diabetes Help Tauranga,
BaySwim, Judea Softball Club, Merchant Navy Day,
Mount Maunganui Sport Fishing Club, Bay of Plenty
Lifelines, Tama Tū Maori Battalion Tour, Mount
College Golf Fundraiser, Avocado New Zealand, plus
individual sportspeople travelling to international
tournaments or participating in charity events.
In the next year, we plan to formally
engage with our stakeholders to
better understand their needs and
wants, so we can prioritise strategies
and actions that are most relevant
and valuable to us all.
Business
Community
Sports
Education
Environment
Dr Isolde Liebherr, Mark Cairns, Patricia Rüf and Pat O’Leary
24
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PORT OF TAURANGA - ANNUAL REPORT 2018
CAPITAL #1 - RELATIONSHIPS

PEOPLE
Port of Tauranga has great people
doing great work – safely – 24 hours
a day, seven days a week and in all
weather conditions.
We aspire to be a national
employer of choice with
an inclusive and equitable
workplace of highly engaged
employees exemplifying our
values and our can do ethos.
In the past year, five Port
of Tauranga staff have
celebrated the rare milestone
of 40 years’ employment
at the Port. Nearly half of
our people have been with
us more than 10 years, and
more than 20% have been
employed here for 20 years
or more.
26
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PORT OF TAURANGA - ANNUAL REPORT 2018
CAPITAL #2 - PEOPLE

Developing a diverse workforce
Port of Tauranga is committed to
providing a workplace that recognises
and values different skills, abilities,
genders, ethnicities and experiences.
This means removing barriers for
existing and potential staff and
eliminating any inappropriate systems,
practices or attitudes.
Like most companies in the ports and
logistics industries, our workforce has
traditionally been male-dominated.
Overall, 17% of our employees are
female with 40% in key operations,
supervisory or management roles.
Both our longevity and gender profiles
are slowly changing, with 34% of our
staff with us for five years or less and
24% of these recent appointments
being female. Our service providers
have female employees in key roles
including crane drivers, straddle drivers
and other heavy machinery operators.
We do not have pay disparity between
male and female employees in
comparable roles and having similar
experience. We believe in merit-based
appointments for all roles, irrespective
of gender, ethnicity and age. We recruit
for attitude, train for skills and then
promote on performance and merit.
Launched Ship Shape, our
programme to support
staff to work better
through wellbeing
Longevity of service and
low staff turnover remain
features of our workforce
Staff survey shows

70%
of staff are satisfied or very
satisfied with their jobs

Internal promotions filled
60%
of vacancies
No pay equity disparity
Enhanced share scheme for
employees announced
PEOPLE
Continued
As some of our older workers retire, we
are seeking ways to encourage younger
people to pursue a lengthy career in
the port industry. Around 60% of our
permanent position vacancies during
the year were filled internally, helping
develop talent within the business.
We have cadetship, apprenticeship
and internship programmes. Our
2014 cadet, Toi Ohomai business
studies graduate Sam Mannix, has
just accepted a full time role at the
Tauranga Container Terminal as a
vessel and operations planner.
We are also investing in future workers,
for the port industry and other sectors,
through two educational scholarship
schemes for Māori students with
connections to the Bay of Plenty.
Keeping the port operating
Port of Tauranga directly employs
208 permanent and 37 casual people.
Around ten times that number are
estimated to work daily on the wharves
or at associated businesses. Together,
these people work to keep the port
operating at world-leading productivity
levels through flexible, competitive and
safe work practices.
Port of Tauranga has respectful,
constructive relationships with our
employees’ unions. Approximately half
of our employees belong to one of three
main unions.
Looking after our people’s wellbeing
An independent, three month study of
our pilots, tug and pilot boat crews gave
us benchmarks to manage the risk of
fatigue. Subsequent staff workshops,
facilitated by a fatigue management
expert, have looked at potential
changes to work patterns, rosters and
other mitigation measures.
In 2017, we introduced an expanded
Sun Smart policy for outdoor workers,
which includes more training and the
provision of sun protection such as
wide brimmed hats, sunglasses and
sunscreen. Skin checks were already
part of annual health monitoring.
Our wellbeing programme, Ship Shape,
brings together health initiatives to
support staff to work better through
wellbeing. We will work towards
accreditation under the WorkWell
framework offered by Toi Te Ora
Public Health.
Louise Kelly is Port of Tauranga’s
Receptionist and Staff Lead of the Ship
Shape wellbeing programme.
“One of our pilots, Richard Haxell, was
the winner of a staff competition to
name the new wellbeing programme.
Staff will have a say in all aspects of the
programme so we can be sure it meets
their needs,” says Louise.
“We have formed a committee of
representatives from various divisions
and all staff are encouraged to raise
ideas or issues. We hope regular
communication means everyone gets
on board and sees the benefit for them
and their families. Ship Shape will help
us build on the great benefits that our
Company already provides for our staff
and include fun activities and health
information for everyone.”
MaleFemale
Permanent
Employees
17335
Average Age5247
Average Length of
Service (Years)
1410
Executive Team80%20%
Directors72%28%
CAPITAL #2 - PEOPLE
Diversity Length of Service (Years)
100
90
80
70
60
50
40
30
20
10
0
<1 1-10 11-12 21-30 31-40 >40
Male Female
Diversity and Service (Years)
<1 1 2 3 4 5
Male Female
Diversity and Gender
250
200
150
100
50
0
Permanent Casual Fixed Term
Male Female
Diversity - female roles
Administration
Operations
Supervisor
Manager
Monitoring staff satisfaction
We undertook a staff engagement
survey that found employee satisfaction
was 70%. Work groups involving staff
from across the business are now
developing action plans to address
points raised.
Port Users’ Forum widens focus
The Port Users’ Health and Safety
Forum was established around 15 years
ago to bring together all key operators
working on the port to identify, discuss
and collaborate on common safety
issues and improvements. Its success
has resulted in the model being
adopted as an industry standard. This
year, the forum has expanded its focus
to include environmental issues.
Age Profile
90
80
70
60
50
40
30
20
10
0
<25 26-30 31-40 41-50 51-60 61-70 <70
Permanent Casual
16
14
12
10
8
6
4
2
0
28
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PORT OF TAURANGA - ANNUAL REPORT 2018

2018 scholarships
awarded to 14 students
Fourteen students in fields ranging
from education to pharmacy received
scholarships in 2018 from the two
schemes administered by Port of
Ta u r a n g a .
The Turirangi Te Kani Memorial
Scholarship has operated for the past
28 years. It was established in honour of
Turirangi Te Kani, a Tauranga kaumatua
with strong links to the Port, who
died in 1990.
This year, four first year students
received scholarships and three
second year students had theirs
renewed.
The second scheme is offered by the
Ngā Mātarae Charitable Trust, which
was established in 2014 to promote
the wellbeing of Tauranga Harbour
following the dredging programme.
The Trust awards scholarships to
students with ties to Tauranga iwi.
Three first year students were awarded
scholarships and four second and third
year students had theirs renewed.
Port of Tauranga takes an active
interest in the tertiary careers of
the students. The scholarships are
awarded on a year-by-year basis and
the students report back on their
progress and exam results each year.
Small steps add up to big strides
In a multi-user environment, keeping
people away from dangerous
operations is a priority.
Our container terminal staff were
concerned about disembarking
international crew adhering to
pedestrian walkways.
To overcome any language barriers,
weather-proof, pictorial instruction
cards were printed to attach to
gangways and handrails.
Another safety initiative has seen us
draw on our internal expertise to design,
fabricate and fit protective guards on
our container cranes.
This project presented multiple
practical challenges, not least of which
was working around the cranes’ busy
shipping schedules.
The guards will protect operators and
maintenance crews from dangerous
moving parts.
Keeping our people safe
Safety is one of our core values and
we continue to create a culture where
proactive worker safety is integral to
every individual who works on our sites.
Our Total Recordable Injury Frequency
Rate (TRIFR) reduced by only 2%,
with the total number of injuries the
same as the previous year at two, both
back strains with one resulting in lost
time and the other requiring medical
treatment.
Our contractors significantly improved
their performance and achieved a 69%
reduction in TRIFR, down to 9.3 per
million hours worked. Port of Tauranga
and contractors combined achieved a
62% reduction to 7.9 per million hours
worked.
We are very pleased that proactive
attitudes towards safety are reflected
in the reporting of near misses, which
has increased more than 35%. There
was also a 7% increase in safety
observations and engagements across
the business. A further indication of
progress was reflected in our survey
feedback where 84% of employees
agreed or strongly agreed that their
manager consistently gave a high
priority and support to health and
safety.
PEOPLE
Continued
CAPITAL #2 - PEOPLE
Directors talk
safety
Our Board of Directors is personally
involved in building safety engagement,
visiting sites at Port of Tauranga as
well as our Subsidiary and Associate
Companies.
Director Julia Hoare was part of a
group that visited Port of Tauranga’s
straddle workshop.
“We were briefed that two critical
risks for the straddle workshop were
‘Working at Heights’ and ‘People vs
Plant’ interactions. It was interesting
to see the high bay platforms they
designed and built to enable the team
to operate safely at heights. When
these platforms were introduced by the
team at the Port they were a world first
and promoted by the manufacturers
Kalmar to other ports. In addition,
the staff were able to explain in depth
how they manage people versus plant
safety in the workshop and, importantly,
when a straddle breaks down in the
terminal operating area. I was really
impressed with the level of focus and
the deep commitment to health and
safety. They run a really effective
operation.”
Contractors’
safety
performance
improved
Our business is only as good as our
people. We strive to attract and
retain workers with aligned values
and the right attitude, and then
help them reach their full potential.
This includes supporting our deeply
experienced ageing workforce, at
the same time as making the port
industry an attractive one for both
younger and female employees.
Employee-led initiatives are being
implemented to address themes
raised in the staff survey, such as
improving communication and
recognising outstanding effort.
Directors visit Port of Tauranga’s straddle workshop
2018 2017
- Employee TRIFR5.55.7
- Contractor TRIFR9.3NA
Near Miss Reports35%
increase
35%
increase
H & S training4 4%
increase
47%
increase
Safety: Total Recordable
Injury Frequency Rate (TRIFR)
14
12
9
6
3
0
2014/15 2015/16 2016/17 2017/18
Per million hours worked
30
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PORT OF TAURANGA - ANNUAL REPORT 2018

Partnership with KiwiRail evolves
and adapts to new challenges
Port of Tauranga is not the only
organisation that has had to transform
the way it does things in order to
accommodate bigger ships.
As we invested in the infrastructure
and systems required to handle larger
volumes of cargo per ship visit, so did
our partners.
KiwiRail needed to reconfigure its train
services and simplify the supply chain
to enable efficient transfers of cargo
and empty shipping containers to and
from Tauranga. KiwiRail also invested
$15 million to upgrade its container
handling facilities in Auckland,
increasing capacity by about 40%.
The new streamlined system sees
trains transfer imported containers
from Tauranga to our inland freight
hub at MetroPort Auckland. Trains are
then filled with emptied containers to
be shifted to Hamilton, where Fonterra
can refill them with exports. The train
is then reloaded with cargo bound
for export from Tauranga, thereby
completing the “Golden Triangle”
and avoiding the need to constantly
relocate empty containers via road, rail
and sea.
The triangulation project has reduced
the lead time to source empty
containers, lowered inventory costs
for shipping companies and optimised
train capacity, eliminating wastage for
all three organisations.
Port of Tauranga favours rail transport
over road whenever possible to
avoid road congestion and carbon
emissions.
SKILLS AND
KNOWLEDGE
Port of Tauranga boasts a talented
pool of specialist port, marine and
supply chain knowledge. We invest
in our people’s skills to serve the
industry and our customers with
world-leading productivity and
innovative business solutions.
CAPITAL #3 - SKILLS AND KNOWLEDGE
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PORT OF TAURANGA - ANNUAL REPORT 2018

Supply chain
integration enables
efficiencies for our
customers
Container terminal
maintains industry-
leading productivity
rates
Chief Financial
Officer wins top prize
at Deloitte Top 200
Business Awards
Port of Tauranga has taken an
integrated view of New Zealand’s
supply chain, leading to the
development of a national network of
expertise in port operations, property
management, warehousing, logistics
and transport.
This indepth knowledge gives Port
of Tauranga and its customers the
opportunity to be efficient, commit to
rationally economic infrastructure and
achieve mutual benefits.
We’ve drawn on our expertise to
expand our hinterland beyond our
traditional Bay of Plenty home,
negotiating long-term freight
agreements with our biggest
customers to give us certainty to
plan for future volumes.
We’ve replicated the success of our
MetroPort Auckland operation near
Christchurch. MetroPort Christchurch
is linked to the Timaru Container
Terminal and rest of the South Island
by rail, giving importers access to a
major metropolitan area and exporters
access to international services.
We are working with partners to
develop intermodal freight hubs in
Hamilton and the central North Island.
Our joint ventures, such as Coda
Group, give us the platform to
integrate the Port with all other parts
of the supply chain, utilising rail,
road transport and inland freight
consolidation hubs to remove cost,
empty capacity and delays from the
cargo network.
Sharing our experience and
expertise
Port of Tauranga contributes to
national forums to address the issues
faced by our industries and others.
We take an active role (including
governance positions in many cases)
in groups such as the Port Industry
Association, Port Chief Executives’
Forum, Business Leaders’ Health
and Safety Forum, Priority One (Bay
of Plenty Economic Development),
Export NZ (Bay of Plenty), Business
New Zealand, the Employers and
Manufacturers’ Association and the
Tauranga Chamber of Commerce.
We also have strong working
relationships with national industry
regulators such as WorkSafe and
Maritime New Zealand.
Understanding Te Awanui/
Tauranga Harbour
Tauranga is fortunate to be the
home of the University of Waikato’s
Coastal Marine Field Station. Port
of Tauranga supports a range of
research programmes that contribute
to Tauranga Harbour’s reputation as
one of the most researched and best
understood harbours in Australasia.
Researchers have recently looked at
the impacts of dredging, the health of
kaimoana and the potential effects of
future development.
SKILLS AND KNOWLEDGE
Continued
CAPITAL #3 - SKILLS AND KNOWLEDGE
Balancing work,
study and the
rest of life
Kyle Murray is putting his hands-on
knowledge of port operations to good
use in a new career in health and safety
management.
After 11 years as a heavy machinery
operator and crane driver at Port
of Tauranga and Port of Brisbane,
Kyle decided to head back to study
in Tauranga to gain qualifications
in occupational health and safety
management.
He is combining his study with a job
as a Health and Safety Coordinator
for Port of Tauranga. His projects
include reviewing compliance with new
hazardous substance regulations and
injury prevention among port workers
with physically demanding roles.
Kyle supplements this work with casual
shifts in the Operations Services and
Security team.
“My career to date sums up the
opportunities available in this industry,”
says Kyle. “I started straight from school
and have worked in a variety of jobs,
from driving trucks to tying up ships
to helping cruise ship passengers find
their way around.
“I started with just a learner’s licence
and now I have every type of special
driving licence there is. I’m putting all
that experience to work in a desk job
that will help keep future workers safe.”
Kyle says the Port has given him
the flexibility he needs to complete
assignments, while giving him real life
examples to study.
Despite his busy schedule as a Port of
Tauranga employee, student and dad of
three young children, 33-year-old Kyle
also manages to fit in an elite sports
career as a Crossfit competitor.
As a member of the Mount Crossfit
team, Kyle has won national titles
and represented New Zealand at
international challenges.
Kyle Murray is a keen Crossfit athlete and has represented New Zealand at international challenges
34
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PORT OF TAURANGA - ANNUAL REPORT 2018

SKILLS AND KNOWLEDGE
Continued
Port CFO wins
accolade
Port of Tauranga’s Chief Financial
Officer, Steve Gray, won the ‘CFO of the
Year’ prize at the 2017 Deloitte Top 200
Business Awards.
The judges said Steve was seen as a
competent CFO who made prudent
investments, a long-term performer
and one who was respected by the
market.
He has overseen outstanding returns
for shareholders in his 10 years in the
role. He led the team that negotiated
the long-term freight agreement with
Kotahi that enabled big ships to start
calling at Tauranga, quickly building it
into the country’s largest port.
Recently he has driven the moves to
conduct a share split and return capital
to shareholders.
“You’ve got to work very hard to make
sure you don’t just look at the numbers,”
says Steve.
“You’ve got to look at all aspects of the
company and what is the best way to
drive growth for shareholders. We’ve
got a small team at Port of Tauranga so
I’ve got to be across everything.”
Improving our risk management
Port of Tauranga recently initiated a
process to integrate our operational
and strategic risk management. It also
integrates the safety improvement
plans of each of our divisions, helping
us to establish improvements,
responsibilities and targets.
A comprehensive, independent safety
audit was undertaken during the year.
The first stage looked at the Port’s top
four critical operations risks, such as
transferring pilots to and from vessels
and the interfaces between people
and machinery. The second stage
assesses how our governance and
executive leadership stacks up against
the Health and Safety at Work Act
2015. The review has identified a series
of improvements for the Board and
management.
New Zealand’s most efficient
container port
The Ministry of Transport has been
monitoring productivity since 2011
using data collected from the country’s
six container ports
1
.
Port of Tauranga is by far New
Zealand’s largest container port,
handling 40% of New Zealand’s
container volumes in the 2017
calendar year. Tauranga’s average
crane rate (containers per hour per
crane) was 35.5 moves per hour for
the year. ended June 2018, compared
with the national average for 2017
of 33.5 moves per hour. In Australia,
the top five container ports had an
average crane rate of 28.9 moves per
hour in the six months from January to
June 2017
2
.
Tauranga’s average ship rate of 87.4
moves per hour per ship in the year
to June 2018 compared with the 2017
average New Zealand ship rate of 77.8
moves per hour and the Australian
average of 55.3 moves per hour.
Industry-wide labour supply issues
All supply chain-related industries in
New Zealand are experiencing skilled
labour shortages and, although Port
of Tauranga is an employer of choice,
we are not immune. The Port and its
service providers have, for example,
been short of straddle drivers at peak
times. We are reviewing entry level
requirements and working with the
industry to develop specific NZQA
qualifications to improve the skills of
port workers. The industry needs to
make it both easy and attractive to join
and build a career.
1
https://www.transport.govt.nz/resources/research-papers/containerproductivitynzports/
2
https://bitre.gov.au/publications/2017/water_061.aspx
CAPITAL #3 - SKILLS AND KNOWLEDGE
The Port of
Tauranga is New
Zealand’s largest
container port
Rail share of land movements in and
out of the container terminal
Source: Ministry of Transport
Steve Gray, Chief Financial Officer wins top prize at Deloitte Top 2017 Business Awards
2014 2015 2016 2017 2018
60%
50%
40%
30%
20%
10%
0%
Export Import
36
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PORT OF TAURANGA - ANNUAL REPORT 2018

National network
ensures best use
of assets
The Port of Tauranga Group has
strengths in many parts of the supply
chain and puts its expertise to work for
New Zealand importers and exporters.
One example of cooperation is our
Associate Company Coda Group’s new
facilities at MetroPort Christchurch,
which will serve Westland Milk.
MetroPort Christchurch is located at
Rolleston and connected by rail to our
Timaru Container Terminal. The Port
is building a new 19,000m
2
warehouse
there, which will be leased to Coda
Group to handle Westland Milk’s
exports.
Average crane rate of
35.5 moves per hour per
crane, compared with 2017
national average of 33.5
moves per hour
Number of TEUs
transferred to MetroPort
Auckland by rail
increased 4%
Our skills strategy aims to protect
and enhance the culture, capability
and capacity of our orgnisation.
We value the knowledge, skills and
experience inherent in our people,
while investing in productivity
improvements and innovation.
We are formalising a training
and development programme
for supervisor and manager level
employees to ensure continuing
professional development. We also
intend to expand our leadership
programme to workers at all levels
of the organisation.
Putting the Port to the test
Port of Tauranga’s operational
emergency preparedness was tested
in September 2017 when fire broke out
in timber stowed in the hold of a vessel
berthed at the Mount Maunganui
wharves.
Our operations team won praise from
emergency services for their quick
response and our tug boat Tai Pari,
equipped with firefighting equipment,
was on hand to assist.
We have a close working relationship
with all emergency services. We
conduct a range of joint training
exercises with Fire and Emergency
New Zealand and the Police. Around
100 police officers from multiple
divisions have recently completed
safety inductions so they can regularly
patrol the premises and quickly assist
in emergencies.
We work closely with Tauranga
Volunteer Coastguard and the
Tauranga Harbourmaster on marine
safety, and the Ministry for Primary
Industries on biosecurity surveillance.
Port of Tauranga staff and systems
helped authorities foil blackmarket
cigarette smuggling attempts and
New Zealand’s biggest ever cocaine
shipment.
Our security officers, high-tech
surveillance cameras and 24-hour
customer service centre supported
the Police and New Zealand Customs
Service in detecting the crimes and
apprehending the alleged offenders.
In June 2017, one of our biggest
customers, Maersk, fell victim to a
global cyber-attack that forced us
to use manual systems and work-
arounds. Following this real life malware
attack, we held a cybersecurity crisis
simulation exercise in August 2017
that led to multiple enhancements to
our crisis management and business
continuity processes.
We will continue to test the resilience
of our business continuity systems and
processes.
Our skilled
operations team
includes highly
experienced marine
crews
SKILLS AND KNOWLEDGE
Continued
CAPITAL #3 - SKILLS AND KNOWLEDGE
MetroPort rail volume
TEUs
300,000
250,000
200,000
150,000
100,000
50,000
0
2014 2015 2016 2017 2018
MetroPort Christchurch
38
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PORT OF TAURANGA - ANNUAL REPORT 2018

CAPITAL #4 - ENVIRONMENT
ENVIRONMENT
Port of Tauranga has an important
role as a guardian of the
environment in which we operate.
Our community looks to us for
responsible stewardship and to
maintain the integrity and diversity
of our environment.
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PORT OF TAURANGA - ANNUAL REPORT 2018

Timberlands
invests in
de-barking plant
Kaingaroa Timberlands, owner of the
country’s largest plantation forest, is
taking a big step towards reducing the
need for log fumigation prior to export.
Timberlands Limited, which manages
the 189,000 hectare Kaingaroa
Timberlands forest estate in the central
North Island, is installing a multi-million
dollar de-barking facility at its Murupara
rail exchange. More than 90% of its
export logs are transferred by train to
the Port of Tauranga.
Timberlands Chief Executive, Robert
Green, says it is a significant capital
investment that will greatly reduce the
use of methyl bromide. The company
currently exports around 1.7 million
tonnes of logs each year, about a third
of its harvest.
De-barked logs destined for China,
New Zealand’s biggest log market, are
not required to be fumigated because
insects are removed along with the
bark.
“We already de-bark at one of our other
sites so we are confident that we’ll be
able to quickly gear up to processing
export logs on a much larger scale,”
says Rober t.
The new facility will open by mid-2019.
Timberlands also has an extensive
research and development programme
aimed at doubling productivity over the
next 30-year growing cycle.
“We are investing in research and
development in the fields of nutrition,
genetics and technology to enhance
what is already a highly efficient forest
products supply chain,” says Robert.
The shareholders of Kaingaroa
Timberlands and Timberlands
Limited are the Public Sector Pension
Investment Board (PSP Investments,
Montreal, Canada), NZ Super Fund
(Auckland, New Zealand) and Kakano
Investment Limited Partnership
(Rotorua, New Zealand).
ENVIRONMENT
Continued
CAPITAL #4 - ENVIRONMENT
Seeking energy-efficient solutions
As we replace and purchase new
equipment, energy-efficient options
are prioritised. We are also utilising
better alternatives in construction.
Our new coolstore, leased to Tauranga
Kiwifruit Logistics, uses a more
environmentally-friendly refrigerant
and energy efficient lighting.
Operational vehicles are gradually
being replaced with electric or hybrid
versions where available and a fast-
charging station has been installed.
Many of the Port’s straddle carriers are
diesel electric models and are 40%
more fuel efficient than older models,
with enclosed braking systems to
avoid dust.
Our container cranes generate their
own electricity when lowering, feeding
surplus energy to other cranes working
nearby.
Reducing fumigation impacts while
keeping bugs at bay
Methyl bromide is a toxic gas used
to fumigate imports and exports to
kill any bugs trying to enter or leave
New Zealand. The biggest users of
methyl bromide in New Zealand are
log exporters, whose major markets
demand methyl bromide fumigation.
Workers are protected from any
potential health risk from methyl
bromide through strict fumigation
protocols regarding exclusion zones
and notifications.
Fumigation at Port of Tauranga is
carried out by highly experienced
operators Genera, according to
codes of practice laid out by various
New Zealand authorities (such as the
Environmental Protection Agency
(EPA) and the Bay of Plenty Regional
Council) as well as our own protocols.
Genera recaptures the methyl
bromide used at Tauranga as required
by the Council and the EPA has set a
2020 deadline for 100% recapture of
methyl bromide used in fumigation.
Port of Tauranga supports the phasing
out of methyl bromide use due to its
negative impact on the environment.
Forestry exporters are working to
reduce the amount of methyl bromide
used, identify suitable alternative
fumigants, and utilise new technologies
and processes to increase recapture.
One of the ways to reduce the amount
required is to de-bark logs prior to their
arrival at the port. There is already
a de-barking facility on the Mount
Maunganui wharves, with proposals
for expansion. One of the largest log
exporters, Kaingaroa Timberlands, is
installing a large de-barking facility at
Murupara.
The Port hosted the recently formed
Tauranga Moana Fumigation Action
Group on a tour of the port to educate
the group and hear their concerns.
We hope to continue constructive
dialogue with this group in future.
Appointed new
Environmental
Manager
Investing in energy-
efficient equipment
(e.g. electric vehicles,
LED lighting)
Continual renovation
of infrastructure to
improve stormwater
quality (e.g. installing
screens and
enviropods)


504,139 truck trips
avoided by using rail
E-vehicles are
the way of the
future at Port of
Tauranga
42
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PORT OF TAURANGA - ANNUAL REPORT 2018
Timberlands is installing a multi-million dollar de-barking facility at its Murupara rail exchange

ENVIRONMENT
Continued

Investment in
comprehensive
monitoring to identify
improvements
available in stormwater
management
Undertook a range of
biosecurity initiatives
in partnership with
MPI, KVH and other
primary producers
(recognised in the
national Biosecurity
Awards 2017)
Initiated an
independent carbon
emissions review
Rail is the most
efficient option
for moving large
volumes of freight
Building effective rail and
road networks
Port of Tauranga is working with the
city and regional councils and the New
Zealand Transport Agency to protect
and enhance the roading networks
that connect the port to importers and
exporters.
Much of the Port’s cargo growth in
recent times has been transhipped
containers (which do not leave the
terminal) or cargo that can be moved
on rail, avoiding a big increase in
truck movements. Just over half of all
cargo volumes are either transhipped,
transported by rail or carried via
pipeline. Nearly 45% of all forestry
exports arrive by rail. Road traffic
congestion is a city-wide problem,
however, and we want to ensure
authorities continue to invest in the
roading network for residents and
industry alike.
We welcome the Government’s
signalled intention to invest more in
KiwiRail’s network. We believe rail is the
most efficient option for moving large
volumes of freight to and from key
cargo catchment areas.
First
Environmental
Manager
appointed
Port of Tauranga has appointed its
first Environmental Manager to help all
areas of the business better manage
any potential environmental impact
from port operations.
Joey McKenzie joined the Port in
January 2018, bringing significant
previous experience, particularly in the
areas of environmental regulations
and compliance.
“The importance of sound
environmental practices was already
acknowledged by Port of Tauranga.
My appointment has helped establish
better coordination of the efforts of
all port users to continuously improve
environmental performance,” says
Joey.
“It’s really important that everyone
does what they’ve promised when it
comes to preventing and dealing with
environmental risk.”
The Port is continuously reviewing its
environmental policies and procedures,
with a particular focus on preventing
spills, avoiding (where possible)
and reducing pollutants entering
stormwater and preserving air quality
by managing dusty activities such as
bulk cargo movements on the port.
“A lot of our risks relate to activities of
other port users where we don’t have
direct control, such as the handling of
import and export goods,” says Joey.
“We have to take a joint approach to
finding solutions, and at times require
port users to address environmental
risk and make improvements.”
CAPITAL #4 - ENVIRONMENT
Volumes moved to and from
Port by transport mode
Tranship
Rail
Road
Pipeline
Joey McKenzie Port of Tauranga’s first Environmental Manager
Truck movements
to and from the Port
2013/14 2014/15 2015/16 2016/17 2017/18
800,000
700,000
600,000
500,000
400,000
300,000
200,000
100,000
Tauranga Mount Maunganui
44
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PORT OF TAURANGA - ANNUAL REPORT 2018

On the frontline of biosecurity
The second annual Biosecurity
Week at Port of Tauranga raised pest
awareness among port workers and
the wider community.
The week highlighted the need for
vigilance from all port users.
“Any pest incursion has the potential
to severely impact the local economy.
We have a responsibility at the port to
protect the industries we are serving,”
says Mark Cairns, Port of Tauranga’s
Chief Executive.
The Port’s biosecurity excellence
partnership won recognition in the
industry section of the national
Biosecurity Awards in 2017. The
partnership involves Kiwifruit Vine
Health (the organisation established
after the PSA bacteria crisis of 2011),
the Ministry for Primary Industries,
other local and central government
agencies, and primary produce
organisations.
The organisations share data and have
established systems for reporting and
identifying the biggest risks, including
the looming threat of the brown
marmorated stink bug.
Preventative measures, such as
housekeeping to avoid attractive
breeding grounds for mosquitoes, is a
big focus, as is arming frontline staff to
know what to look for and what to do if
they see something suspicious.
Preventing air and water pollution
New wind fencing at our Hewletts
Road and Totara Street log storage
yards will help prevent near neighbours
being annoyed by dust.
Port of Tauranga has almost
completed sealing all wharf and
cargo storage areas to reduce
dust and make cleaning easier. Log
debris sweeping has been doubled
by the purchase of a second
machine by service provider Daltons,
which collects the excess bark for
composting. The Port has installed
dust suppression misting sprays on
bulk cargo hoppers used for fertiliser,
stock feed and other potentially dusty
cargoes. There are already wind limits
for discharging bulk cargoes and
stevedores are monitored by the Port’s
24 hour Customer Service Centre
to ensure they comply with handling
rules.
More than a dozen stormwater
screening chambers have been
installed at the Mount Maunganui
wharves, where our dustiest cargoes
are handled. The Port has also
installed ‘enviropods’ in stormwater
cesspits at Sulphur Point to remove
any pollutants prior to drainage to the
harbour.
Port of Tauranga is working through
a stormwater management resource
consent application with the Bay
of Plenty Regional Council for
stormwater discharges from the Mount
Maunganui wharves area. The Port is
also investing in enhanced monitoring
of stormwater quality to support
continual improvement.
International issues for the
port industry
The International Maritime
Organisation (the United Nations
agency charged with preventing
marine pollution by ships) is pursuing
a move to low sulphur fuel worldwide
by 2020. We fully support this policy
and have made formal submissions in
support of this policy.
We have also reviewed the potential
impact on our operations of climate
change. It is our view that our current
systems and processes are sufficient
to manage extreme weather events,
and our infrastructure (including
wharves and equipment) will be
unaffected by any rise in sea level.
Tidy work sites keep water clean
Port of Tauranga engineers
successfully trialled the use of a
silt boom when working on some
harbourside repairs over the summer.
The works to the north face of the
container terminal required a digger,
which had the potential to stir up
sand and silt and affect harbour water
quality.
A silt boom was deployed to contain
the site and keep the water nearby
clear and clean.
ENVIRONMENT
Continued
Pipi abundant
in Tauranga
Harbour
Marine ecologists have been
monitoring the pipi populations at
Paritaha or Central Bank in Tauranga
Harbour following the dredging project.
University of Waikato scientists
sampled pipi at multiple depths at
several locations on the sand bank
- before and just after the dredging,
and again six months and 15 months
following the project.
In the report completed earlier this
year
1
, the researchers found the pipi
beds had recovered well following the
dredging and were now abundant.
“Fifteen months after dredging was
completed, pipi beds on Te Paritaha
have recovered to their pre-dredge
population structure and abundance...
any impacts of the dredging campaign
were shortlived,” concluded the report.
Pipi have an important role to play
in the harbour, filtering the water
and providing a rich food source for
other sea life such as crabs, fish and
stingrays.
CAPITAL #4 - ENVIRONMENT
1
Ross, P.M., Culliford, D. P. 2018. The impact of capital dredging on the pipi (Paphies australis) of Te Paritaha (Centre Bank) in Tauranga Harbour. Environmental
Research Institute Report No. 109. Client report prepared for the Port of Tauranga Limited. Environmental Research Institute, Faculty of Science and
Engineering, The University of Waikato, Hamilton. 12pp.
Port of Tauranga
won recognition in the
industry section of the
national Biosecurity
Awards 2017
The beach beside Whareroa Marae on Tauranga Harbour has been replenished with sand from maintenance dredging
46
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PORT OF TAURANGA - ANNUAL REPORT 2018

Recycling
waste material
The landscape supplies business
Daltons transforms log operations waste
into a valuable export product and
sought-after potting mix.
Daltons collects bark and cleans the
wharves, processing the byproduct into
rich, high quality horticultural products
that are shipped around New Zealand
and across the world.
Sand from shipping channel
maintenance has been used to replenish
local beaches as well as for roading
projects throughout the Bay of Plenty.
Recent recipients of sand include Pilot
Bay at Mount Maunganui, the beach
beside Whareroa Marae near Tauranga
Airport, and Kulim Park on the Tauranga
side of the harbour.
ENVIRONMENT
Continued
CAPITAL #4 - ENVIRONMENT
Port of Tauranga is committed
to responsible environmental
stewardship and protecting the
integrity of our harbour and
surrounds.
We monitor fuel and electricity
consumption and recently engaged
Enviro-Mark Solutions for an
independent carbon emissions audit.
The results will inform our target-
setting and reporting in future.
Stormwater management is a priority
involving multiple activities. We
are installing preventative controls
to avoid contaminants on land
from entering stormwater, as well
as improving wharf housekeeping.
We are also renovating stormwater
infrastructure and installing
additional treatment where required.
Increased monitoring will help us
adapt our approach.
Electricity use and electricity use/tonne
Millions
Diesel use and diesel use/tonne
Millions
Sand replenishment at Pilot Bay beach, Mount Maunganui
1
TEU = Twenty Foot Equivalent Units
2
Net Tonne Kilometres

3
Source: KiwiRail
MEASURING OUR PROGRESS
2018201720162015
Electricity Use (kWh)
Total Electricity Use by Port Operations (kWh)
30,953,194
27,780,70227,134,48926,592,230
Electricity use by terminal operations (kWh/TEU)
1
26.18
25.5828.4431.24
Electricity use by terminal reefer operations (kWh/TEU)
102.80
100.92108.48108.36
Electricity use by bulk operations (kWh/Tonne)
1.27
1.251.351.32
Diesel Use (Litres)
Total Diesel use by port operations (Litres)
4,232,872
3,944,7773,494,6663,178,645
Diesel use by terminal operations (Litres/TEU)
2.76
2.912.962.81
Diesel use by terminal operations per straddle (Litres/Hour)
18.09
18.6719.4818.74
Diesel use by marine operations (Litres/Vessel)
587.93
530.89529.18570.62
Transport
Truck Movements - Mount Wharves
278,170
261,317225,305217,706
Truck Movements - Tauranga Container Terminal
388,888
344,278334,297362,749
Total Truck Movements
667,058
605,595559,602580,455
Rail (NTKs
2
Billion)
3
1.583
1.6001.500
Reduced heavy vehicle impact (# Trucks)
3
504,139
463,930458,388
Fuel Savings (Million Litres)
3
20.9
21.321.3
CO
2
emission savings (Tonnes)
3
58,829
57,99457,923
35
30
25
20
15
10
5
0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
0.5
0
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.00
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.00
2015 2016 2017 20182015 2016 2017 2018
Total Electricity (kWh) kWh/Tonne
Diesel Use (Litres) Litres/Tonne
48
49
PORT OF TAURANGA - ANNUAL REPORT 2018

ASSETS AND
INFRASTRUCTURE
To fulfill our aspirations, Port
of Tauranga must invest in and
manage our infrastructure and
assets prudently. This includes
our land, our buildings and our
equipment, as well as the people
using them.
CONTAINER THROUGHPUT
8.9%
increase from 1,085,987 to
1,182,147 TEUs
OVERALL CARGO VOLUMES
10.2%
increase from 22,194,014 tonnes
to 24,457,715 tonnes
TRANSHIPMENT RATES
23.3%
increase in transhipment volumes, with
25.7% of all TEU now transhipped
SHIP VISITS
5.8%
increase from 1,651 to 1,747.
CAPITAL #5 - ASSETS AND INFRASTRUCTURE
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PORT OF TAURANGA - ANNUAL REPORT 2018

New purpose-built
coolstore opened at
Mount Maunganui to handle
kiwifruit and other chilled
cargoes
Expansion under way at
MetroPort Christchurch
with construction of a
19,000m
2
warehouse, plus
canopy and offices, to be
used by Coda Group
Planning for container
cargo growth with a ninth
crane ordered for
delivery in 2020
The current growth in cargo
volumes was made possible by the
Company’s investment in capacity to
accommodate bigger ships. We spent
more than $350 million over six years
to prepare for larger vessels, which
started calling in late 2016.
The investment included dredging
to widen and deepen shipping lanes,
extending the container ship wharves
by a third, and purchasing new ship-to-
shore cranes and other equipment.
Annual container volumes broke the
one million TEU milestone in August
2017. In the year to 30 June 2018, Port
of Tauranga handled almost 1.2
million TEUs.
New coolstore at Mount Maunganui
A new purpose-built coolstore
has opened at Berth #1 to handle
increasing volumes of kiwifruit cargo
and better maintain produce quality.
Shed 1 is primarily being used to
handle kiwifruit during the export
season from March to November. It
has been leased to Tauranga Kiwifruit
Logistics, which handles exports for
Zespri International.
The transitional coolstore facility is
far more efficient than the converted
cargo shed that formerly occupied the
site, using less electricity and more
environmentally-friendly refrigerant.
The shed is one of two new facilities
that opened in 2017. On the other
side of the harbour, Shed 16 was
constructed on 2.2 hectares of land
adjacent to the Tauranga Container
Terminal gate. It is being leased by pulp
and paper exporter Oji Fibre Solutions
for product storage, handling, packing
and dispatching.
Geographic reach across
New Zealand
We have extended our national
network to bring fast, cost-effective
services within easy reach of New
Zealand’s biggest importers and
exporters.
Our inland freight hubs in Auckland,
Hamilton and Christchurch, and our
South Island container terminal in
Timaru, ensure unrivalled connectivity
to international shipping services via
road, rail and sea.
At Rolleston, our MetroPort
Christchurch intermodal freight hub
is set to expand. We are constructing
a new warehouse complex for our
associate company Coda Group,
scheduled to open in early 2019.
The hub is connected by rail to Port of
Tauranga’s Timaru Container Terminal.
Rail is also our preferred mode of
freight transport in the upper North
Island. Eighty six trains per week
transport containers to and from
Auckland, while bulk cargoes such
as logs, timber, pulp and paper, steel
and dairy products are delivered to
Tauranga by rail from all over the
North Island.
ASSETS AND
INFRASTRUCTURE
Continued
CAPITAL #5 - ASSETS AND INFRASTRUCTURE
Gerard
Morrison,
Managing
Director, Maersk
Line Oceania:
“Port of Tauranga’s investment was
the catalyst for us to bring in bigger
ships, which are now calling weekly.
They connect the New Zealand supply
chain directly to the global Maersk Line
network. It has enabled us to offer more
services and open up new markets that
were perceived to be too far away for
some cargoes,” says Gerard.
“We now have the flexibility to match
capacity to demand and be as efficient
as we can be.”
Gerard says ongoing collaboration and
partnerships are the key to continued
growth in an era of rising costs.
“New Zealand’s competitiveness
relies on the speed and cost to our
international markets. We need to keep
working together to reduce both, by
finding better ways to do things and
challenging the status quo.”
He says that includes technological
solutions.
“As an industry we are well behind other
sectors when it comes to automation
and digitisation. Our customers want
more visibility, real-time information and
better management of their cargoes in
transit,” he says.
“We can use technologies such as
blockchain to achieve integration
between shipping lines, ports, shippers
and their customers around the world.”
Port of Tauranga is now planning
for the next stage of cargo growth.
Of our 190 hectares, about 40
hectares are available for expansion,
and container throughput could
potentially triple with land
reconfiguration and stacking cranes.
We are investing in a new container
crane and technology, such as vehicle
booking systems, to better manage the
flow of container trucks at peak times.
Longer-term, we could extend the
quay length both sides of the harbour
using Port-owned land south of
existing berths.
Maersk provides fast connections to South America and North Asia
52
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PORT OF TAURANGA - ANNUAL REPORT 2018

CAPITAL #6 - FINANCES
FINANCES
Port of Tauranga has strived
to ensure shareholders receive
sustainable returns by having diverse
income streams.
GROUP NET PROFIT AFTER TAX – RECORD
$94.3M
(up 13.0% on previous year)

REVENUE
$283.7M
(up 10.9% from previous year)


GROUP EBITDA

$169.2M
(up 11.1% on previous year)
EARNINGS PER SHARE
14.0 Cents
(Per Share)
ORDINARY DIVIDENDS
12.7 Cents
(Per Share - up 13.4%)
54
55
PORT OF TAURANGA - ANNUAL REPORT 2018

Strong profit growth of
13.0%
compared with previous year

Group Net Profit After Tax
up 21.9%
since completion of $350
million big ship capability
investment in 2016

Earnings from Subsidiary and
Associate Companies
$16.4M
(up 11.9% from previous year)

Assets revalued, increasing by
$226M

Nearly
$62.3M
in dividends paid to Bay of
Plenty Regional Council’s
Quayside Holdings, bringing
the total contribution to more
than $700 million since 1992
FINANCES
Continued
Port of Tauranga is not only the largest
container port in New Zealand, but
also the largest bulk port. It exports the
majority of logs, dairy products and
kiwifruit from New Zealand.
The Port has a large port-related
property portfolio that generates in
excess of $27 million in rental income.
Strategic property acquisitions ensure
future capacity can be expanded for
port and port-related activities.
The Group’s Associate and Subsidiary
Companies are spread throughout
New Zealand and earn 17% of its
income.
Our strategy is to continue to
produce sustainable returns for our
shareholders while ensuring we do this
with the appropriate levels of risk.
Port of Tauranga’s compound annual
growth rate since listing on the New
Zealand Stock Exchange (NZX) in
1992 is 22.4%.
This has been achieved by ensuring all
our capital expenditure achieves the
required rate of return expected by our
Board of Directors.
Returns to shareholders
Two years ago we announced a capital
restructure, aiming to return up to
$140 million to shareholders over four
years. This is the third year of special
dividend payments of $34 million or 5
cents per share.
Emerging cargoes offer new
revenue sources
Port of Tauranga’s space and efficient
services continue to attract new
customers and we see great potential
in cargoes that are currently small in
volume, such as cars.
Cruise ships bring tourism
boost to Bay
More than 151,000 cruise ship
passengers spent an estimated $59
million in the Bay of Plenty region in
the year to June 2017
1
. The region had
the second-largest cruise spend in
the country according to Tourism New
Zealand. With cruising an increasingly
popular holiday choice, ship visits to
Tauranga are expected to increase
from 83 last season to around 113 calls
in the 2018/2019 season.
CAPITAL #6 - FINANCES
Nigel Tutt,
Chief Executive,
Priority One:
(Bay of Plenty Economic
Development Agency)
“Port of Tauranga is a huge economic
asset to the Western Bay region.
“Having the port here is a key attractor
of new businesses to the area and
provides opportunities for Bay
businesses to grow.
“The Port’s strategic leadership,
particularly around its expansion
programme and the dredging to
accommodate larger ships, is paying
real dividends to the local economy.
“It gives exporters an edge in accessing
international markets.”
According to economic consultancy
Infometrics, the Bay of Plenty economy
grew 4.1% in the year to March 2018,
compared with the national average
of 2.7%
1
.
Cruise ships
are an attraction
for locals too
1
Bay of Plenty Times, 23 July 2018.
We are pleased to report we are
on track to continue to deliver
our planned capital return to
shareholders, given our requirement
to maintain a conservatively geared
balance sheet.
We continue to invest in
additional assets to ensure we can
accommodate growth in all cargoes.
We are currently undertaking a
capacity review of all our
infrastructure to ensure we can meet
our customers’ needs in future.
The port is a major contributor to the Bay of Plenty economy
1
https://www.tourismnewzealand.com media/3359/
cruise-sector-infographics march-2018.pdf
56
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PORT OF TAURANGA - ANNUAL REPORT 2018

D A PILKINGTON
BSc, BE, GradDip Dairy Science &
Technology, CFInstD, Chair
INDEPENDENT DIRECTOR
David Pilkington was a member of
Fonterra’s senior executive team. He holds
directorships in Northport Limited, Port
of Tauranga Trustee Company Limited
and PrimePort Timaru Limited and
chairs Douglas Pharmaceuticals Limited,
Hellers Limited and Rangatira Limited.
He has a strong background in marketing,
international business and supply chain
logistics. David joined the Board in
July 2005.
BOARD OF
DIRECTORS
J C HOARE
BCom, FCA, CMInstD
INDEPENDENT DIRECTOR
Julia Hoare has a comprehensive range
of commercial, financial, tax, regulatory
and sustainability expertise which she
developed over the course of 20 years as a
partner with PwC.
Julia is Deputy Chair of The a2 Milk
Company Limited and Watercare Services
Limited and her other directorships
include: Director, Auckland International
Airport Limited, AWF Madison Group
Limited, New Zealand Post Limited, and
The a2 Milk Company (New Zealand)
Limited (subsidiary of The a2 Milk
Company Limited), and Member of
Auckland Committee, Institute of Directors,
Advisory Panel to External Reporting
Board and the Institute of Directors
Council. Julia chairs the Audit Committee
and joined the Board in August 2015.
R MCLEOD
Rob McLeod joined the Board of Quayside
Holdings Limited in November 2016 and
is Chair. Rob is currently on the Board
of NZX listed Sanford Group and Tax
Management NZ Limited, and has been
past Board Member at ANZ National
Bank, Tainui Group Holdings, SkyCity
Entertainment Group and Telecom. Rob
was Oceania (Australia, New Zealand and
Pacific Islands) CEO / Managing Partner
for the international accounting practice of
Ernst & Young and more latterly as Ernst &
Young New Zealand Chair, a position from
which he retired on 31 December 2015.
Rob joined the Board in October 2017.
D W LEEDER
Doug Leeder is Chair of Bay of Plenty
Regional Council. He is a dairy farmer,
and has considerable experience in
governance and management. Doug has
held positions of governance in Federated
Farmers, was a Director and Chair of Bay
Milk Products, Director of the East Bay
Health Board, Chair of Subsidiary East Bay
Energy Trust, Chair of NZ Dairy Group and
Dairy Insight, and Director of DEXCEL.
Doug joined the Board in October 2015.
A M ANDREW
BE Chemical & Materials (1st Class
Honours), MBA (Distinction), FEngNZ,
CMInstD
INDEPENDENT DIRECTOR
Alison Andrew is currently Chief Executive
of Transpower New Zealand Limited
having joined in 2014. She has held a
number of senior executive roles across
various industry sectors, most recently
as Global Head of Chemicals for Orica
PLC. She has also been a Director for
Genesis Energy. Prior to those roles,
she held a number of senior roles at
Fonterra Cooperative Group and across
the Fletcher Challenge Group in Energy,
Forests and Paper. Alison has a MBA
from Warwick University, and studied
Engineering (Chemicals and Materials)
at Auckland University. Alison joined the
Board in April 2018.
K R ELLIS
BCA Economics (1st Class Honours),
BE Chemical (1st Class Honours)
INDEPENDENT DIRECTOR
Kim Ellis is Chair of Metlifecare Limited,
NZ Social Infrastructure Fund Limited
and Sleepyhead Group Limited, and
a Director of Ballance Agri-Nutrients
Limited, Fonterra Shareholders Fund
(FSF) Management Company Limited
and Freightways Limited. Kim chairs the
Remuneration Committee and joined the
Board in May 2013.
A R LAWRENCE
BCA Business Admin
INDEPENDENT DIRECTOR
Alastair Lawrence is a very experienced
corporate advisor, specialising in
commercial evaluation and strategy
development. He was a Director of
private investment bank, Antipodes,
from 1998-2014.
Governance roles have included Takeovers
Panel, Landcare Research Limited, Coda
GP and a number of mid market private
companies. Alastair joined the Board in
February 2014.
58
59
PORT OF TAURANGA - ANNUAL REPORT 2018
PORT OF TAURANGA – BOARD OF DIRECTORS

SENIOR
MANAGEMENT
TEAM
Steven Gray
Chief Financial Officer
Leonard Sampson
Commercial Manager
Sara Lunam
Corporate Services Manager
Dan Kneebone
Property & Infrastructure
Manager
Mark Cairns
Chief Executive
60
61
PORT OF TAURANGA - ANNUAL REPORT 2018
PORT OF TAURANGA – SENIOR MANAGEMENT TEAM

Contents
Directors’ Responsibility Statement 63
Independent Auditor's Report 64
Consolidated Income Statement 67
Consolidated Statement of Comprehensive Income 68
Consolidated Statement of Changes in Equity 69
Consolidated Statement of Financial Position 70
Consolidated Statement of Cash Flows 71
Reconciliation of Profit After Taxation to Cash Flows From Operating Activities 72
Notes to the Consolidated Financial Statements 73
Corporate Governance Statement 101
Statutory Information 102
Financial and Operational Five Year Summary 110
Company Directory Inside Back Cover
Financial
Statements
For the Year Ended 30 June 2018
Port of Tauranga Limited and Subsidiaries
The Directors are responsible for ensuring that the financial
statements give a true and fair view of Port of Tauranga Limited (the
Group) as at 30 June 2018.
The Directors consider that the financial statements of the Group
have been prepared using appropriate accounting policies,
consistently applied and supported by reasonable judgements and
estimates, and that all relevant financial reporting and accounting
standards have been followed.
The Directors are pleased to present the financial statements of the
Group for the year ended 30 June 2018.
The financial statements were authorised for issue for and on behalf
of the Directors on 23 August 2018.
..........................................................
Chair
..........................................................
Director
Directors’ Responsibility Statement
For the Year Ended 30 June 2018
63
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PORT OF TAURANGA - ANNUAL REPORT 2018
PORT OF TAURANGA LIMITED AND SUBSIDIARIES