Institutional Investor Day Presentations

BUILDING
FUTURE
CONNECTIONS
10 June 2021

IMPORTANT NOTICE AND DISCLAIMER
This presentation has been prepared by Napier Port Holdings Limited (together with
Port of Napier Limited, "Napier Port"). This presentation is being provided to you on
the basis that you are, and you represent and warrant that you are, a person to
whom the provision of the information in this presentation is permitted by the
applicable laws and regulations of the jurisdiction in which you are situated without
the need for registration, lodgement or approval of a formal disclosure document or
any other filing or formality in accordance with the laws of that foreign jurisdiction.
Information only; No reliance: This presentation is for information purposes only
and you should not rely on this presentation. This presentation does not purport to
contain all of the information that you may require or be complete. The historical
information in this presentation is, or is based upon, information that has been
released to NZX Limited ("NZX"). This presentation should be read in conjunction
with Napier Port's other periodic and continuous disclosure announcements, which
are available at www.nzx.com.
The information in this presentation does not constitute a personal recommendation
or service or take into account the particular needs of any recipient. The information
in this presentation should be considered in the context of the circumstances
prevailing at the date and time of the presentation and is subject to change without
notice. No person is under any obligation to update this presentation nor to provide
you with further information about Napier Port. This presentation does not constitute
or form part of an offer to sell, or a solicitation of an offer to buy, any shares,
securities or financial products in any jurisdiction. This presentation has not been and
will not be filed with or approved by any regulatory authority in New Zealand or any
other jurisdiction.
Investment risk: An investment in securities in Napier Port is subject to investment
and other known and unknown risks, some of which are beyond the control of Napier
Port. Napier Port does not guarantee any particular rate of return or the performance
of Napier Port.
No liability: Napier Port, its shareholders, their respective advisers and affiliates,
and each of their respective directors, shareholders, partners, officers, employees
and representatives accept no responsibility or liability for, and make no
representation, warranty or undertaking, express or implied, as to, the fairness,
accuracy, reliability or completeness of, and to the maximum extent permitted by law
hereby disclaim and shall have no liability whatsoever (including, without limitation,
arising from fault or negligence or otherwise) for any loss or liability arising from, this
presentation or any information contained, referred to or reflected in it or supplied or
communicated orally or in writing to you or any other person. The information in this
presentation has not been independently verified or audited.
Financial data: All dollar values are in New Zealand dollars (NZ$ or NZD) unless
otherwise stated. Any financial information provided in this presentation is for
illustrative purposes only and is not represented as being indicative of Napier Port's
views on its future financial condition and/or performance.
Investors should be aware that certain financial data included in this presentation are
'non-GAAP financial measures'. Investors are cautioned not to place undue reliance
on any non-GAAP financial measures included in this presentation, they do not have
a standardised meaning prescribed by New Zealand Generally Accepted Accounting
Standards and, therefore, may not be comparable to similarly titled measures
presented by other entities, nor should they be construed as an alternative to other
financial measures determined in accordance with New Zealand Generally Accepted
Accounting Standards.
Past performance: Any past performance information given in this presentation is
given for illustrative purposes only and should not be relied upon as (and is not), a
promise, representation, warranty or guarantee as to the past, present or the future
performance of Napier Port.
Future performance: This presentation contains "forward-looking statements",
which include all statements other than statements of historical facts, including,
without limitation, any statements preceded by, followed by or that include the words
"targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would",
"could" or similar expressions or the negative thereof. Indications of, and guidance or
outlook on, future earnings or financial position or performance are also forward-
looking statements. Such forward-looking statements involve known and unknown
risks, uncertainties and other important factors beyond the control of Napier Port that
could cause the actual results, performance or achievements of Napier Port to be
materially different from future results, performance or achievements expressed or
implied by such forward-looking statements. No assurances can be given that the
forward-looking statements referred to in this presentation will be realised. Given
these uncertainties, you are cautioned not to rely on such forward-looking
statements.
Confidentiality and copyright: This presentation is strictly confidential and is
intended for the exclusive benefit of the person to which it is presented. This
presentation
should not be copied, reproduced or redistributed without the prior written consent
of Napier Port. Distribution of this presentation may be restricted or prohibited by law.
The copyright of this presentation and the information contained in it is vested in
Napier Port.
Acceptance: For purposes of this Notice, "presentation" shall mean the slides,
the oral presentation of the slides by Napier Port, any question-and-answer session
that follows that oral presentation, hard copies of this document and any materials
distributed at, or in connection with, that presentation. By attending an investor
or analyst presentation or briefing, or accepting, accessing or reviewing this
presentation, you acknowledge and agree to the terms set out in this Notice.

⚬Future proofed
⚬Channel and berth pocket consented
t
o -14.5m
⚬Gantry crane ready
⚬Series 8 MHC ready
RECAP ON BASIC
FEATURES/CAPABILITIES
3
* Courtesy of Crane.MarketCopyright Terex MHPS GMBH

RECAP ON RESILIENCE
4
DESIGNED AND
CONSTRUCTED TO
IMPORTANCE LEVEL 4,
PROVIDES THE PORT
AND THE REGION
MAXIMUM RESILIENCE
TO EARTHQUAKE
1/2500 YEAR
EARTHQUAKE

RECAP ON
PROJECT DEVELOPMENT
⚬Resource Consent Process
⚬Early Contractor Involvement (ECI) – HEB
C
onstruction working with Napier Port and
Beca (designers) on detailed design,
constructability and Value Engineering.
⚬Contract development – C
hapman Tripp
⚬Resulted in Lump Sum Contract with clear
r
isk allocation
⚬Key Sub Contractors –
H
eronConstruction and Wagstaff
5

PROGRESS –
PILING AND DECK
⚬Deck Hardware ordered
⚬Pile depth (NP Risk)l
argely as expected
6
380
OF 400 PILES
COMPLETED
35%
OF DECK
CONSTRUCTED
(32 POURS)

PROGRESS – DREDGING
7
683,000 m
3
OF 1.21 MILLION m
3
COMPLETED
⚬Dredging completion expected late 2021
⚬Material type largely as expected
⚬No issues dredging harder rock

PROGRESS – OTHERS
⚬Ground improvements commenced
⚬Pavement works commencing
t
his week
⚬10 M
oorMasterunits ready for
shipment from Italy
⚬Electrical substation build progressing
8

ENVIRONMENTAL
195
PENGUINS
RELOCATED TO
SANCTUARY
9
2
CHICKS
HATCHED
0
CONSENT
BREACHES
0
WATER QUALITY
EXCEEDANCES
FROM DREDGING
15
FISHING SURVEYS
COMPLETED
EACH MONTH
2
ARTIFICIAL
REEFS CREATED

10
CULTURAL
LAUNCH OF THE
marineculturalhealth.co.nz

11
CULTURAL
CLICK HERE TO
WATCH THE MARINE
CULTURAL HEALTH
PROGRAMME VIDEO

HEALTH & SAFETY
⚬Number of incidents, LTIs, focus on
major issues
⚬Napier Port active in H&S
⚬Two third-par
ty audits completed
12

GOVERNANCE
⚬Project Steering Group meets monthly
⚬Weekly walkover by CEO and Chair
⚬Third Party Project Management Audit conducted
13

OUR
CORPORATE
STRATEGY
10 June 2021

IMPORTANT NOTICE AND DISCLAIMER
This presentation has been prepared by Napier Port Holdings Limited (together with
Port of Napier Limited, "Napier Port"). This presentation is being provided to you on
the basis that you are, and you represent and warrant that you are, a person to
whom the provision of the information in this presentation is permitted by the
applicable laws and regulations of the jurisdiction in which you are situated without
the need for registration, lodgement or approval of a formal disclosure document or
any other filing or formality in accordance with the laws of that foreign jurisdiction.
Information only; No reliance: This presentation is for information purposes only
and you should not rely on this presentation. This presentation does not purport to
contain all of the information that you may require or be complete. The historical
information in this presentation is, or is based upon, information that has been
released to NZX Limited ("NZX"). This presentation should be read in conjunction
with Napier Port's other periodic and continuous disclosure announcements, which
are available at www.nzx.com.
The information in this presentation does not constitute a personal recommendation
or service or take into account the particular needs of any recipient. The information
in this presentation should be considered in the context of the circumstances
prevailing at the date and time of the presentation and is subject to change without
notice. No person is under any obligation to update this presentation nor to provide
you with further information about Napier Port. This presentation does not constitute
or form part of an offer to sell, or a solicitation of an offer to buy, any shares,
securities or financial products in any jurisdiction. This presentation has not been and
will not be filed with or approved by any regulatory authority in New Zealand or any
other jurisdiction.
Investment risk: An investment in securities in Napier Port is subject to investment
and other known and unknown risks, some of which are beyond the control of Napier
Port. Napier Port does not guarantee any particular rate of return or the performance
of Napier Port.
No liability: Napier Port, its shareholders, their respective advisers and affiliates,
and each of their respective directors, shareholders, partners, officers, employees
and representatives accept no responsibility or liability for, and make no
representation, warranty or undertaking, express or implied, as to, the fairness,
accuracy, reliability or completeness of, and to the maximum extent permitted by law
hereby disclaim and shall have no liability whatsoever (including, without limitation,
arising from fault or negligence or otherwise) for any loss or liability arising from, this
presentation or any information contained, referred to or reflected in it or supplied or
communicated orally or in writing to you or any other person. The information in this
presentation has not been independently verified or audited.
Financial data: All dollar values are in New Zealand dollars (NZ$ or NZD) unless
otherwise stated. Any financial information provided in this presentation is for
illustrative purposes only and is not represented as being indicative of Napier Port's
views on its future financial condition and/or performance.
Investors should be aware that certain financial data included in this presentation are
'non-GAAP financial measures'. Investors are cautioned not to place undue reliance
on any non-GAAP financial measures included in this presentation, they do not have
a standardised meaning prescribed by New Zealand Generally Accepted Accounting
Standards and, therefore, may not be comparable to similarly titled measures
presented by other entities, nor should they be construed as an alternative to other
financial measures determined in accordance with New Zealand Generally Accepted
Accounting Standards.
Past performance: Any past performance information given in this presentation is
given for illustrative purposes only and should not be relied upon as (and is not), a
promise, representation, warranty or guarantee as to the past, present or the future
performance of Napier Port.
Future performance: This presentation contains "forward-looking statements",
which include all statements other than statements of historical facts, including,
without limitation, any statements preceded by, followed by or that include the words
"targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would",
"could" or similar expressions or the negative thereof. Indications of, and guidance or
outlook on, future earnings or financial position or performance are also forward-
looking statements. Such forward-looking statements involve known and unknown
risks, uncertainties and other important factors beyond the control of Napier Port that
could cause the actual results, performance or achievements of Napier Port to be
materially different from future results, performance or achievements expressed or
implied by such forward-looking statements. No assurances can be given that the
forward-looking statements referred to in this presentation will be realised. Given
these uncertainties, you are cautioned not to rely on such forward-looking
statements.
Confidentiality and copyright: This presentation is strictly confidential and is
intended for the exclusive benefit of the person to which it is presented. This
presentation
should not be copied, reproduced or redistributed without the prior written consent
of Napier Port. Distribution of this presentation may be restricted or prohibited by law.
The copyright of this presentation and the information contained in it is vested in
Napier Port.
Acceptance: For purposes of this Notice, "presentation" shall mean the slides,
the oral presentation of the slides by Napier Port, any question-and-answer session
that follows that oral presentation, hard copies of this document and any materials
distributed at, or in connection with, that presentation. By attending an investor
or analyst presentation or briefing, or accepting, accessing or reviewing this
presentation, you acknowledge and agree to the terms set out in this Notice.

RESETTING OUR PURPOSE TO REDEFINE
AND ALIGN OUR STRATEGY TO THE FUTURE
3
⚬A need to understand our WHY –
“Together, we build a thriving region by
connecting our customers, people and
community to the world”
⚬Three years ago we put in place an
ambitious roadmap for our business
•Future regional growth
•6 Wharf development – congestion
vs bigger ships
•Shift from shipping line focus to our region
and cargo owner customers
•Building on our culture and our
foundations with 150 years of history
•Leveraging our key business strengths
•New ownership model
FOUNDATION SETTING
0 – 3 YEARS
CAPABILITY BUILDING
4 –6 YEARS
TRANSFORMING OUR BUSINESS
7-10 YEARS
-Strategy creation
-IPO
-6 Wharf commences
-Thames Street II
-Kaweka
-6 Wharf completion
-Systems and process upgrade
-People development
-Health & Safety
-Sustainability
-New value and revenue
streams
-Rebalancing supply chain
-Sustainability improvements
-Preferred employer
-Integrated supply chain network
offerings

4
⚬Achieved what we said we would, and more
⚬3- Year Strategy Refresh
•The external environment has changed – customer
expectations, competition, global challenges
•We have changed internally – our ambition,
customer focus, culture
•Looking ahead and understanding new influences that
may be on the horizon
•One thing we’re not changing is
our purpose – our WHY
CONTINUING TO EVOLVE OUR STRATEGY
BASED ON WHAT WE SEE NOW AND AHEAD

EMBEDDING SUSTAINABILITY
IN EVERYTHING WE DO
5
⚬External and internal stakeholder consultation
⚬Development of our Sustainability Framework
⚬Establishing reporting goals
⚬Sustainability Strategy launching in FY21
•Aligned to 14 of 17 UN SDGs
•Work streams aligned to global, local
and business goals
•Short, medium and long term timeframes

BUILDING ON WHAT WE STARTED AND
TELLING OUR STORY MORE BROADLY
6
V

0
CULTURE OF CARE –
BUILDING CAPABILITY
7
V
“Support our strong and resilient
culture which encourages care
of our people, the local community
and the environment”
⚬Foundation of our strategy
⚬3- Year Health & Safety Road Map
•ISO45001 alignment
•Critical Risk Control Management
•SAI360 launch
⚬Mapping out our next 3-year road
map (2023 – 2026)
•Focus on assurance activities
•Embedding standards across operations
•Safety II led culture of Health & Safety
•Operationally led and driven

CULTURE OF CARE –
GROWING IN PARTNERSHIP
8
⚬Social License to Operate is shifting towards
a Social License to Grow
•Marine Cultural Health Programme delivering
on our 6 Wharf resource consent
•Growing and strengthening iwi relationships
•Partnering with and working alongside
the wider community
•Building on the strong sense of ownership and
regional pride developed for Napier Port by
Hawke’s Bay communities

GROW OUR CULTURE WITH OUR PEOPLE’S
PASSION FOR THE PORT AND THE REGION
9
⚬Te Kāhui O Te Herenga Waka
O Ahuriri –Te Ao Māori strategic plan
⚬Equality, Diversity & Inclusion Strategy
⚬Employee engagement survey
conducted in May 2021
•Culture Amp platform
•71% participation rate
•77% engagement score
•Annual process from 2021
“Make Napier Port an even better
place to work with a highly engaged
and caring workforce of owners,
invested in their port and region”

HARNESSING DATA
& TECHNOLOGY
10
“Leverage intelligent data to create new
value for our port and our customers”
⚬In-hous
e teams driving innovation
and providing productivity
and efficiency gains
•Sharewater– Harbour Management System
•Propel – Vehicle Booking System
•Reefer power monitoring (internally)
•Port Pass
•Crane Simulator
•Marine Simulator
•Container inspection mobile app
•Port Activity Map (PAM) - GIS
⚬Developing new revenue streams
for Napier Port

COLLABORATIVE
PARTNERSHIPS
11
“Developing and building partnerships
with like-minded organisations”
⚬Investing in our community
⚬S
trong customer focus
⚬Wide range of stakeholders, including
•Technology partners– InPhySec
•Contractors– HEB, Higgins
•Government entities – Kiwirailand NZTA
•Local government– HDC, NCC, HBRC
•Customers – Pan Pac, WPI
•Other industry – Hawke’s Bay Airport,
Unison
•Key suppliers – Prophecy, SCS,
Tomoana Warehousing
•Community-based Sponsorships–
ĀteaA Rangi Educational Trust, Napier
Port Family Fishing Classic,
NapierPortOcean Swim, among others

CUSTOMER
CONNECTION
12
V
“Create value by gaining rich insights
through deeper customer relationships”
⚬Listening to what our customers
s
ay and designing and building
solutions that deliver value
⚬Working with our customers on new
strategic initiatives, such as the debarker,
mobile harbour cranes, rail services,
and inland port opportunities
⚬Working closely with shipping lines
•10 lines and 6 services, including OC1/Trident,
Southern Star, Japan Conference, ANZAC,
PIL-NZX, and MSC
⚬The Port that says “Yes”

CONNECTING WITH CUSTOMERS
OUTSIDE OF THE REGION
13
V
NEW CUSTOMERS THAT WE’RE
BRINGING TO NAPIER PORT:
NAPIER
PORT
LOGISTICS
SERVICES

NETWORKED
INFRASTRUCTURE
14
“Support an evolving supply
chain with a resilient and agile
infrastructure network”
⚬Connecting into the supply chain
for central and lower North Island
⚬Maintenance of existing
infrastructure
MANAWATŪ INLAND PORT
WHAKATŪ INLAND PORT
THAMES STREET DEPOTS
KIWIRAIL INTERMODIALFREIGHT HUB

⚬A national ports supply chain
strategy is required
•Good working relationship
with Kiwirailand understanding
of its future investments,
including BunnythorpeHub
•Eliminating waste from the
supply chain
•Improve resilience and
reliability of the port,
road and rail infrastructure
⚬Future proofing central
and lower North Island
connections to global
markets
NZ INC APPROACH WITH NORTH
ISLAND SUPPLY CHAIN STRATEGY

16
EXPERIENCED MANAGEMENT TEAM THAT IS WELL CONNECTED WITH CARGO OWNERS
AND OTHER STAKEHOLDERS
Extensive commercial and infrastructure expertise and broad depth of senior leadership experience in New Zealand and overseas,
and management enjoys strong relationships with key stakeholders and the local community
STRONG HISTORICAL FINANCIAL PERFORMANCE AND A RECORD OF EXECUTION
ON GROWTH OPPORTUNITIES
Napier Port delivered annual average revenue growth of 7.5% over the last ten years (2010 -2020), while consistently delivering
EBITDA margins of above 40%
STRONG REGIONAL ECONOMIC GROWTH DRIVERS AND STRONG KEY CUSTOMER RELATIONSHIPS
The Hawke’s Bay region has experienced strong growth, supported by international demand for its diverse range of export cargo.
Strong key customer relationships see the Port embedded as an essential supply chain partner
DIVERSIFIED TRADE PORTFOLIO MITIGATES SECTOR AND COUNTRY-SPECIFIC RISKS
The Port handles a diversified mix of export and import products including logs and forestry products, pipfruit, oil productsand fertiliser,
which are shipped to or from over 110 countries globally
AN INFRASTRUCTURE ASSET ESSENTIAL TO THE HEALTH OF THE HAWKE’S BAY ECONOMY
Napier Port is an essential regional infrastructure asset and, by connecting Hawke’s Bay and central New Zealand to global markets, is an active
participant in driving regional prosperity
A LONG-TERM ASSET ESSENTIAL TO THE HEALTH OF THE HAWKE’S BAY ECONOMY
OUR STRATEGY BUILDS ON A STRONG BUSINESS
WELL-POSITIONED GIVEN FUTURE CARGO VISIBILITY AND FULLY-CONSENTED DEVELOPMENT PLANS
Future cargo visibility enables robust planning for strategic growth projects. Development of 6 Wharf is expected to significantly increase
the Port’s capacity and improve operational efficiency

17
Napier Port EBITDA
1
FY2016 - FY2020 (NZ$M)
$27.8
$35.3
$37.2
$40.5
$41.0
FY16FY17FY18FY19FY20
10.2% CAGR
+>50%
growth
FY25
FINANCIAL TARGETS – FY25
1 - Pro forma

NAPIER PORT
LOG SUPPLY CHAIN
10 June 2021

IMPORTANT NOTICE AND DISCLAIMER
This presentation has been prepared by Napier Port Holdings Limited (together with
Port of Napier Limited, "Napier Port"). This presentation is being provided to you on
the basis that you are, and you represent and warrant that you are, a person to
whom the provision of the information in this presentation is permitted by the
applicable laws and regulations of the jurisdiction in which you are situated without
the need for registration, lodgement or approval of a formal disclosure document or
any other filing or formality in accordance with the laws of that foreign jurisdiction.
Information only; No reliance: This presentation is for information purposes only
and you should not rely on this presentation. This presentation does not purport to
contain all of the information that you may require or be complete. The historical
information in this presentation is, or is based upon, information that has been
released to NZX Limited ("NZX"). This presentation should be read in conjunction
with Napier Port's other periodic and continuous disclosure announcements, which
are available at www.nzx.com.
The information in this presentation does not constitute a personal recommendation
or service or take into account the particular needs of any recipient. The information
in this presentation should be considered in the context of the circumstances
prevailing at the date and time of the presentation and is subject to change without
notice. No person is under any obligation to update this presentation nor to provide
you with further information about Napier Port. This presentation does not constitute
or form part of an offer to sell, or a solicitation of an offer to buy, any shares,
securities or financial products in any jurisdiction. This presentation has not been and
will not be filed with or approved by any regulatory authority in New Zealand or any
other jurisdiction.
Investment risk: An investment in securities in Napier Port is subject to investment
and other known and unknown risks, some of which are beyond the control of Napier
Port. Napier Port does not guarantee any particular rate of return or the performance
of Napier Port.
No liability: Napier Port, its shareholders, their respective advisers and affiliates,
and each of their respective directors, shareholders, partners, officers, employees
and representatives accept no responsibility or liability for, and make no
representation, warranty or undertaking, express or implied, as to, the fairness,
accuracy, reliability or completeness of, and to the maximum extent permitted by law
hereby disclaim and shall have no liability whatsoever (including, without limitation,
arising from fault or negligence or otherwise) for any loss or liability arising from, this
presentation or any information contained, referred to or reflected in it or supplied or
communicated orally or in writing to you or any other person. The information in this
presentation has not been independently verified or audited.
Financial data: All dollar values are in New Zealand dollars (NZ$ or NZD) unless
otherwise stated. Any financial information provided in this presentation is for
illustrative purposes only and is not represented as being indicative of Napier Port's
views on its future financial condition and/or performance.
Investors should be aware that certain financial data included in this presentation are
'non-GAAP financial measures'. Investors are cautioned not to place undue reliance
on any non-GAAP financial measures included in this presentation, they do not have
a standardised meaning prescribed by New Zealand Generally Accepted Accounting
Standards and, therefore, may not be comparable to similarly titled measures
presented by other entities, nor should they be construed as an alternative to other
financial measures determined in accordance with New Zealand Generally Accepted
Accounting Standards.
Past performance: Any past performance information given in this presentation is
given for illustrative purposes only and should not be relied upon as (and is not), a
promise, representation, warranty or guarantee as to the past, present or the future
performance of Napier Port.
Future performance: This presentation contains "forward-looking statements",
which include all statements other than statements of historical facts, including,
without limitation, any statements preceded by, followed by or that include the words
"targets", "believes", "expects", "aims", "intends", "will", "may", "anticipates", "would",
"could" or similar expressions or the negative thereof. Indications of, and guidance or
outlook on, future earnings or financial position or performance are also forward-
looking statements. Such forward-looking statements involve known and unknown
risks, uncertainties and other important factors beyond the control of Napier Port that
could cause the actual results, performance or achievements of Napier Port to be
materially different from future results, performance or achievements expressed or
implied by such forward-looking statements. No assurances can be given that the
forward-looking statements referred to in this presentation will be realised. Given
these uncertainties, you are cautioned not to rely on such forward-looking
statements.
Confidentiality and copyright: This presentation is strictly confidential and is
intended for the exclusive benefit of the person to which it is presented. This
presentation
should not be copied, reproduced or redistributed without the prior written consent
of Napier Port. Distribution of this presentation may be restricted or prohibited by law.
The copyright of this presentation and the information contained in it is vested in
Napier Port.
Acceptance: For purposes of this Notice, "presentation" shall mean the slides,
the oral presentation of the slides by Napier Port, any question-and-answer session
that follows that oral presentation, hard copies of this document and any materials
distributed at, or in connection with, that presentation. By attending an investor
or analyst presentation or briefing, or accepting, accessing or reviewing this
presentation, you acknowledge and agree to the terms set out in this Notice.

THE WALL OF WOOD
3
⚬Map showing forestry blocks in all
regions contestable to Napier Port.
⚬The catchment totals approx.
420,000 hectares of radiata pine
plantings.
* Map prepared in 2018 by Manawatu Aerial Photo Services
and FormeForest Industry Consultants
HAWKE’S BAY FORESTRY PLANTINGS

THE WALL OF WOOD
4
Significant plantings in Hawke's Bay in the 1990s are maturing.
This is expected to translate to higher export volumes to at least 2030.
* Average harvest age of Radiata Pine in New Zealand over the last 5 years according to Forest Owners Association Facts & Figures 2019/20
ADJUSTED HAWKE’S BAY FORESTRY PLANTINGS
(time-adjusted for average harvest age of +29 years*)
NAPIER PORT LOG EXPORTS

MARKETS
EXPORT MARKETS:
5
CURRENT LOG EXPORT PRICING IS STRONG:
Source: Ministry for Primary Industries ManatûAhu Matua
China 93%India 5%
South Korea 2%
EXPORT LOG PRICES
(NZD per JAS)
FY20 EXPORT LOG VOLUMES:
BY DESTINATION

MARKETS
6
BULK SHIPPING RATES ARE ALSO HIGH:
Note: Graph shows the Baltic Dry Index (BDI), a composite index. Most New Zealand log trade is shipped
in handy size vessels, which is strongly influenced by the BDI. (Source: Trading Economics)
OTHER MARKETS:
NZD:USD
CNY:USD

UNDERSTANDING COST AND
OPPORTUNITY TO INFLUENCE
7
APPROXIMATE LOG EXPORT SUPPLY CHAIN COSTS
1
:
LOGS TO PORT
$60 PER TONNE
planting, growing and transporting
SHIPPING
$30 PER TONNE
vessel chartering, shipping
and transiting logs to customer
PORT COSTS
$20 PER TONNE
storage, wharfage, stevedoring
and marine costs
$10 per tonneOthers
$10 per tonne Napier Port
1 Approximates based on exporter advice. Varies amongst exporters and source forests
including market variations in costseg.vessel chartering rates.

NAPIER PORT LOG EXPORTERS
⚬Napier Port focus on forest owners
⚬Napier Porthas
a mix of seven log exporters
⚬Three forest owners
•Pan Pac, AVA (Matariki+ HancockForests), ErnslawOne
⚬Four Traders, Agents, AWG (At Wharf Gate buyers)
•Fortuna FP, Pacific FP, TPT, China Forestry Group(CFG)
⚬Napier Port space allocation model toincentivise
positive outcomes:
•Driving throughput
•Shipping programme
•Stevedore productivity
•Health & Safety performance
•Environmental outcomes
8
% FOREST OWNER
vs AWG BUYER, FY

LOG STEVEDORES AT NAPIER PORT
⚬Two stevedore and marshalling companies –
ISO Limitedand C3 limited are contracted
directly by exporters
⚬At Napier Port, ISO currently have
60%
share and C3 40%share
9

STEVEDORE CONSTRAINTS
⚬Productivity
•Vessels can work a maximum of four gangs per shift.
At Napier Port,weareaveraging 3.1 gangs deployed
over the last threeyears
•Productivity flat
⚬Difficulty ofs
tevedores to obtain and retain sufficient skilled
labour – extremely high turnover per annum
•Typically low skill base to start
•Health and Safety lagging
•Labour rates are low for a 24/7 operation working outdoors inallweather
•Transient workforce
•High cost to train and competitive landscape
- Gaining qualifications such as Class 5, digger operators, health & safety
- Move into other industries such as construction, transport, forestry/bush
10

SPACE IS AT A PREMIUM ON PORT
⚬Limited storage land footprint on-port at
9.4 hectares currently (with some flexibility)
⚬Fumigation (M
ethyl Bromide) space intensive
⚬ISOhav
e recently opened a site
on Hyderabad Road (3 km from Napier
Port) toaddadditional/overflow storage
for their customers
11

HEALTH AND SAFETY
⚬Safety performance in managing volume
⚬Licence to operate in place with both
s
tevedore companies giving Napier Port
a contractual connection
⚬Regular health and safety meetings held
w
ith industry companies – stevedores,
fumigators, and exporters
⚬Pre-v
essel meetings held with all
relevant stakeholders and PCBUs
before each vessel
12

OPPORTUNITIES
EXTEND REACH
⚬Landside logistic services to attractm
ore
volume to Napier Port
⚬Additional volume coming to Napier Port
•Wairoa rail
•Central North Island rail
⚬Significant opportunity to expand
these opportunities as constraints
are addressed
13

OPPORTUNITIES
MOBILE HARBOUR CRANE (MHC)
LOG LOADING TRIAL
⚬Trial for loading logs with MHCs scheduled for Q4 2021
⚬Three exporters and one stevedore supporting the trial
⚬Productivity – v
essel rate expected to improve from around
500 (approximately 160 tonnes per gang) to 900 tonnes
per hour
⚬Labour – reduction in stevedore labour requirements
(currently 10 people per shift) will help address
current labour shortages
⚬Safety – eliminating the most dangerous roles
will improve health and safety
⚬Initial capital investment in grabs/grapples
⚬Revenue based on volume loaded
14

OPPORTUNITIES
LOG DEBARKER
⚬Mobile debarking unit to be situated on Napier Port
⚬Alternative to Methyl Bromide forphy
tosanitarytreatment
(currently moratorium ends in November)
•Approx. 600,000 JAS p.a. currently fumigated
⚬Top deck cargo – Napier Port will remain
a finishing port option
• Volume
•Target 250,000 JAS p.a. initially
•Approx. 400,000 JAS p.a. capacity
⚬Scalable
⚬Option for out of region new supply
⚬Subject to completing commercial agreements
⚬Estimate operational Q4 2021
15

OPPORTUNITIES
6 WHARF
⚬Increases availability of both 4 and 5 wharves
f
or log loading
⚬4 Wharf is currently very restricted for logs
w
ith wide beam container vessels on 5 Wharf
⚬New berth is important in the context of cruise
s
hips returning and congestion in harbour
⚬Berth options will be less of a factor
as
log volumes grow
OTHER
⚬WPI square logs
•New volume to Napier Port up to 4,000
cubic metres per month expected
16