POT Financial Results for the Year to 30 June 2021

c:\users\carol\appdata\local\temp\m-f5343.tmp\nzx letter - full year result june 2021.docx
27 August 2021
NZX
Wellington
Dear Sir/Madam
PORT OF TAURANGA LIMITED FULL YEAR RESULTS: 30 JUNE 2021
In accordance with the NZ Stock Exchange Listing Rules, please find attached the following
documentation for release to the market:
1Press Release
2Integrated Annual Report (containing audited financial statements)
3NZX Results Announcement
4NZX Distribution Notice – Full Year
Yours sincerely
Simon Kebbell
CHIEF FINANCIAL OFFICER

---

27 August 2021
Port of Tauranga Result Boosted by
Increased Trade Volumes and Strong
Subsidiary and Associate Earnings
Financial results for the year to 30 June 2021
Port of Tauranga, New Zealand’s largest port, today reported Group Net Profit After Tax of $102.4
million, a 15.4% increase, on 25.7 million tonnes of trade.
A 14.3% increase in log exports and a 46.0% increase in Subsidiary and Associate Company earnings
were balanced by increased costs and reduced container volumes due to supply chain congestion.
Results summary:
∂Total trade increased 3.8% to 25.7 million tonnes (up from 24.8 million tonnes)
∂Container volumes decreased 4.1% to 1,200,831 TEUs
1
(down from 1,251,741 TEUs)
∂Group Net Profit After Tax increased 15.4% to $102.4 million, up from an adjusted $88.7 million
the previous year
2
∂Subsidiary and Associate Companies’ earnings of $18.6 million, a 46.0% increase
∂Final dividend of 7.5 cents per share
∂Total ordinary dividend of 13.5 cents per share
∂Imports increased 4.0% to 9.4 million tonnes
∂Exports increased 3.6% to 16.3 million tonnes
Port of Tauranga Chair, David Pilkington, says the results are very pleasing considering the well-
documented supply chain challenges of the past year.
“As the world continues to grapple with the devastating effects of the Covid-19 pandemic, there has
been major disruption in international supply chains. Constrained capacity in parts of the New Zealand
supply chain, especially at Ports of Auckland, has exacerbated delays and restricted our ability to adapt
quickly to the needs of importers and exporters,” says Mr Pilkington.
“International shipping capacity is in hot demand and costs for shippers have skyrocketed.”
Within this context, he says Port of Tauranga has proven to be strong and resilient.
“Our diversity of cargoes gives us some resilience in terms of revenue, and our long-term freight
agreements with key customers give us some certainty of cargo volumes,” he says.
1
TEUs = twenty foot equivalent units, a standard measure of shipping containers
2
The adjustment in FY2020 Group NPAT was due to revaluations of Associate Companies Northport and PrimePort Timaru

2
“However, it is not efficient to run a container terminal at more than 100% capacity and our costs,
including straddle carrier diesel use and the related carbon emissions, have grown as a result of the
congestion we have had to endure. In recent months, we have also experienced the labour shortages
felt by many other industries.”
Temporary surcharges for long-stay containers, introduced in January to discourage inefficient cargo
flows and relieve yard congestion, helped Port of Tauranga to recover a portion of the additional costs
being experienced. Parent Company revenue increased 8.9% to $323.5 million, while operating costs
increased more than 15%.
Port of Tauranga Chief Executive, Leonard Sampson, says the Port’s team and contractors have done
an outstanding job in the face of the challenges.
“The evolving response to the Covid-19 pandemic has had a significant impact on Port of Tauranga
operations. Our team has really excelled and deserves special acknowledgement.
“We saw 106 fewer container vessel visits between September 2020 and June 2021. However, the
average cargo exchange increased 21.7% due to the reduced vessel frequency and shippers
maximising available capacity,” he says.
Near record surges of container volumes in the months of October and December, compounded by
constrained rail capacity, caused significant congestion, reduced productivity and weeks-long delays
transferring import containers by rail to Auckland.
Additional trains from KiwiRail since May have eased the pressure, however container vessels are still
arriving “off window” and are being processed in the order they arrive.
Mr Sampson says Port of Tauranga is extremely grateful for the ongoing support of its customers, who
are experiencing extraordinary disruption and uncertainty.
“I’m really pleased that the strength of our partnerships has shone through in these testing times,” he
says.
Growing capacity to ease congestion
Mr Sampson says congestion is unlikely to be resolved permanently until vessels can return to schedule
and Ports of Auckland is back operating at full capacity. This highlights the need for Port of Tauranga
to expand its capacity to cater for future demand.
“We have applied for resource consent to extend our container berths to the south of the existing
wharves, by converting existing cargo storage land. This $68.5 million project is a vital piece of national
infrastructure if we are to meet future cargo demand and have a resilient supply chain,” he says.
“We are also pursuing our plans to automate some of the container storage at the terminal to increase
our capacity within the current land footprint. Our capability will be further extended with the opening of
the inland port at the Ruakura Superhub near Hamilton in mid-2022.”
The inland port is being developed in a 50/50 partnership with Tainui Group Holdings.
Cargo trends
Total trade increased 3.8% compared with the previous year, growing to 25.7 million tonnes, although
container numbers were 4.1% fewer at 1.2 million TEUs.
Imports increased 4.0% to 9.4 million tonnes, and exports increased 3.6% to 16.3 million tonnes.

3
Log export volumes bounced back from the 2020 lockdown, increasing 14.3% to 6.3 million tonnes.
Sawn timber and wood panel exports decreased 12.4% in volume.
Dairy product exports decreased 1.9% to just over 2.3 million tonnes, reflecting a later-than-usual
season and a reduction in tranship volumes.
Kiwifruit exports increased 10.1% in volume.
Oil product imports increased 11.6% in volume, and cement imports increased 42.4% in volume,
reflecting the strength in the local economy.
Fertiliser imports decreased 16.9% in volume, grain volumes decreased 8.9% and protein and stock
feed imports decreased 10.4%.
Coal imports increased significantly as a result of lower hydro energy production and declining gas
production.
People and safety
Frontline workers are subject to regular Covid-19 testing and, with legislation introduced mid-July, are
now subject to mandatory vaccination. They must receive their first dose by 30 September, and their
second dose by 4 November. Only four of Port of Tauranga’s 49 eligible employees have not yet been
fully vaccinated and redeployment options are being explored for any who do not meet the September
deadline.
Port of Tauranga treats all visiting vessels as if they have Covid-19 on board and will continue to do so.
The Company strongly recommends vaccination as an additional measure to the existing Covid-19
precautions.
While productivity has decreased due to the congestion, the overriding concern has been for port
workers’ safety.
“We have made it very clear that safety must be our number one priority and that speed should not
come at safety’s expense,” says Mr Sampson.
Sustainability
Air and water quality continues to be a major focus for the Port. The Port expects de-barking of export
logs to continue to increase, which has the dual benefits of reducing the need for fumigation and
minimising dust and debris.
While the Port continues to comply with all of its stormwater resource consent conditions on both sides
of the harbour, we are also investigating options for additional stormwater treatment at the Mount
Maunganui wharves.
Port of Tauranga has decided, after consultation with stakeholders, to insist that recapture technology
is applied to 100% of methyl bromide fumigations on log stacks from 1 January 2022. This is over and
above any current regional or national requirements.
Congestion in the container terminal also resulted in increased diesel consumption from straddle carrier
movements, causing a 7.0% increase in overall carbon emissions. However, emissions intensity
(emissions per cargo tonne) increased only slightly.

4
Outlook
The outlook for the next financial year remains uncertain.
Mr Sampson says he is confident that Port of Tauranga has resolved land-side congestion issues for
now.
“However, the disruption to the international supply chain remains, and the challenges in Auckland are
unlikely to be resolved soon,” he says.
Covid-19 precautions will continue to impact efficiency and costs as we continue to prioritise the health
and safety of our team members, their whanau and the community. In recent months, we have
witnessed a worsening sector-wide labour shortage that could potentially have an impact on operations.
Port of Tauranga will provide earnings guidance for the 2022 financial year at its Annual Shareholders’
Meeting on 29 October 2021.
For more information, please contact:
David Pilkington
Chair
Ph: 021 609 635
Leonard Sampson
Chief Executive
Ph: 021 281 2377
http://www.port-tauranga.co.nz/category/current-news/

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Port of Tauranga Limited
Integrated Annual Report 2021
Taking care of tomorrow

Port of Tauranga is New Zealand’s largest and most efficient port.
It is the international freight gateway for the country’s imports and exports.
It is the only New Zealand port able to accommodate larger container vessels,
unlocking economic and environmental benefits for shippers.
As the Covid-19 pandemic continues to wreak havoc on global health and
international supply chains, Port of Tauranga’s people and processes have
proven strong and resilient. Our customers, shareholders and the community
continue to receive wide-reaching benefits from Port of Tauranga.
Port of Tauranga is New Zealand’s Port for the Future.
Port of Tauranga Limited – Integrated Annual Report 2021

1

2
Port of Tauranga Limited – Integrated Annual Report 2021

4 Highlights and Challenges
6 Chair and Chief Executive’s Report to Shareholders
16 Integrated Reporting
18 Company Overview
– Our Purpos
e and Vision
– Our Values
– Our National Network
– How Port of T
auranga Creates Value
24 What Matters Most
26 Managing Risks and Opp
ortunities
28 Capital #1 – Our Relationship
s
34 Capital #2 – Our People
40 Capital #3 – Our Skills and Knowledge
44 Capital #4 – Our Environment
52 Capital #5 – Our Assets and Infrastructure
58 Capital #6 – Our Finances
62 Board of Directors
64 Senior Manag
ement Team
66 Consolidat
ed Financial Statements
112 Corporate Governance Statement
120 Financial and Opera
tional Five Year Summary
122 Company Dire
ctory
Table of
contents
3

Group Net Profit After Tax
$102.4
million (increased 15.4%
from $88.7 million1)
Total trade
25.7
million tonnes (increased
3.8% from 24.8 million tonnes)
Subsidiary and Associate
Company earnings of
$18.6
million, a 46.0% increase
Final dividend
7.5
Container volumesmports
1.2
million (decreased 4.1%
from 1.25 million TEUs
2
)
Revenue
$338.3
million (increased 12.0% from
$302.0 million)
Total ordinary dividend
13.5
(compared with 12.4
cents per share)
Container crane rate
29.7
(compared with 35.8 moves
per hour in 2020)
Imports
9.4
million tonnes (increased
4.0% from 9.0 million tonnes)
Exports
16.3
million tonnes (increased
3.6% from 15.8 million tonnes)
Carbon emissions
7.0%
increase (mostly due to
container terminal congestion)
Total Recordable Injury Frequency Rate
0
worked (Port of Tauranga) and 13.8 per
million hours worked (Port of Tauranga
and contractors combined)
Ship visits
1,307
(decreased 13.7% from 1,515)
Port tours
2,500+
people hosted on port tours
Scholarships
18
tertiary education
scholarships awarded
Construction began at
inland port at Ruakura Superhub,
due to open in mid-2022
Highlights
and Challenges
Year Ended 30 June 2021
1
Adjusted from $90.0 million FY20 due to Northport and PrimePort revaluations. Refer to note 15(c) of the financial statements.
2
TEUs = Twenty Foot Equivalent Units – a standard measure of shipping containers
4
Port of Tauranga Limited – Integrated Annual Report 2021

Group Net Profit After Tax
$102.4
million (increased 15.4%
from $88.7 million1)
Total trade
25.7
million tonnes (increased
3.8% from 24.8 million tonnes)
Subsidiary and Associate
Company earnings of
$18.6
million, a 46.0% increase
Final dividend
7.5
Container volumesmports
1.2
million (decreased 4.1%
from 1.25 million TEUs
2
)
Revenue
$338.3
million (increased 12.0% from
$302.0 million)
Total ordinary dividend
13.5
(compared with 12.4
cents per share)
Container crane rate
29.7
(compared with 35.8 moves
per hour in 2020)
Imports
9.4
million tonnes (increased
4.0% from 9.0 million tonnes)
Exports
16.3
million tonnes (increased
3.6% from 15.8 million tonnes)
Carbon emissions
7.0%
increase (mostly due to
container terminal congestion)
Total Recordable Injury Frequency Rate
0
worked (Port of Tauranga) and 13.8 per
million hours worked (Port of Tauranga
and contractors combined)
Ship visits
1,307
(decreased 13.7% from 1,515)
Port tours
2,500+
people hosted on port tours
Scholarships
18
tertiary education
scholarships awarded
Construction began at
inland port at Ruakura Superhub,
due to open in mid-2022
cents per
share
per million
hours
cents per
share
moves
per hour
(compared with 6.4 cents per
share in 2020)
5

The year in review has been extremely challenging as
the world continues to grapple with the effects of the
Covid-19 pandemic.
The pandemic has caused well-
documented and widespread disruption
to the international supply chain, through
erratic consumer demand, interrupted
production cycles and scarce shipping
availability. In addition, closer to home, we
have felt the consequences of congestion
as a result of Ports of Auckland’s
operational problems.
We wish to acknowledge the incredible
efforts of our people and our service
providers in dealing with the range of
challenges we’ve faced.
Our Subsidiary and Associate Companies
have had a stellar year, delivering a strong
financial result in spite of increased costs
and an uncertain outlook.
Bulk cargoes, especially log exports, have
bounced back strongly following the 2020
Level 4 lockdown.
Temporary surcharges for long-stay
containers, introduced in January to
discourage inefficient cargo flows and
relieve yard congestion, helped cover some
additional costs from the congestion.
We took advantage of the low interest rates
on offer and issued a $100 million five year
wholesale bond at a coupon rate of 1.02%.
We have preserved liquidity through astute
debt management, and our balance sheet
remains strong.
Financial results for the year ended
30 June 2021
Group Net Profit After Tax increased to
$102.4 million, up 15.4% from an adjusted
$88.7 million last year.
Parent revenue increased 8.9% to $323.5
million. Marine revenue decreased due to
a 13.7% drop in ship visits, including cruise
ships. However, there was increased revenue
from log and container storage, as well as
Subsidiary and Associate Company income.
Labour, rail and other congestion-related
costs grew significantly, with operating
expenses increasing 15.3% to $161.1 million.
Our people
and our service
providers have
done an incredible
job in the face of
many challenges.
THE YEAR IN REVIEW:
Chair and Chief Executive’s Report to Shareholders
6
Port of Tauranga Limited – Integrated Annual Report 2021

Leonard Sampson
Chief Executive
7

Port of Tauranga’s Board of Directors
has declared a fully imputed interim final
dividend of 7.5 cents per share to bring
the total dividend to 13.5 cents per share,
compared with 12.4 cents per share in the
2020 financial year.
Farewell to Mark Cairns
At the end of June we said farewell to
our retiring Chief Executive of 16 years,
Mark Cairns.
Mark built up a strong team and the Board
was delighted to be able to appoint an
internal successor in Leonard, who has
been with Port of Tauranga for nearly eight
years. The Company will continue to benefit
from his deep commercial knowledge,
wide logistics sector experience and
relationship-building abilities.
Safety the top priority
The health and safety of our people
continues to be our number one priority
and is the issue of most importance for
our stakeholders. Our message has been
that safety should not be sacrificed in the
pursuit of speed or productivity, and we will
continue to put safety first, always.
Congestion and delays for supply chain
Covid-19 and ongoing operational problems
at Ports of Auckland contributed to the
past year being one of the most volatile
the Port has ever experienced in terms
of cargo volumes.
The widespread disruption in the
international supply chain caused shipping
delays, cancellations and scarcity of supply.
We saw 208 fewer ships during the year,
with container vessel visits between
September 2020 and June 2021 dropping
by 106 vessels compared with the previous
period. However, the average cargo
exchange per container vessel increased
21.7%, reflecting strong demand for
capacity and the reduced vessel frequency.
The average cargo tonnes per ship
increased from 16,375 to 19,693.
At the end of June we
farewelled our retiring
Chief Executive of 16
years, Mark Cairns.
Mark Cairns
THE YEAR IN REVIEW:
Chair and Chief Executive’s Report to Shareholders
8
Port of Tauranga Limited – Integrated Annual Report 2021

Near-record spikes in container numbers
in the months of October and December,
compounded by constrained rail capacity,
caused significant congestion. Overall
container throughput for the year was 1.2
million TEUs, 4.1% less than the previous year.
The surges in demand put extreme
pressure on our container storage capacity
in both Auckland and Tauranga, and the
rail capacity between. It had a severe
impact on our efficiency and productivity.
With the container yard operating at more
than 100% capacity at times, the average
net crane rate (container moves per hour)
dropped to 29.7 for the year, down from
35.8 in 2020. Late arriving vessels were
slow to pick up exports, adding to the
congestion.
In January we introduced temporary
surcharges for shippers rolling cargo or
leaving their containers on the wharf for
excessive time, which helped to ease
avoidable congestion.
Relief in the form of additional trains from
KiwiRail finally arrived in May, when we were
able to increase our train programme from
72 trains to up to 90 trains per week.
Labour shortages start to bite
Vessels are still arriving “off window”. We are
processing container vessels as they arrive
and hoping to gradually introduce more
schedule reliability as shipping companies
can give us more certainty.
In recent months, we have witnessed a
worsening labour shortage that could
potentially have an impact on operations.
The lack of workers is widespread, affecting
many industries, and we are competing
for people against, in some cases, our own
customers. We are working with other
port employers to make jobs as attractive
as possible.
Growing capacity to ease congestion
Congestion is also unlikely to be resolved
permanently until Ports of Auckland is
back operating at full capacity, and/or we
are able to extend our terminal berth and
container handling capacity at Tauranga.
We have applied for resource consent to
extend our container berths to the south
of the existing wharves, where we currently
have available cargo storage land.
The $68.5 million project will create
an estimated 368 jobs through the
construction phase, and more than 81
permanent jobs after completion. Port of
Tauranga believes this project is of national
significance in that it will bring urgently
needed capacity and resilience to New
Zealand’s supply chain. It is extremely
frustrating that the process for gaining a
consent takes so long, for what is a critical
expansion to much-needed capacity.
No Government funding is required for
the project. Last year we applied for
consideration under the Government’s
“shovel ready” and “fast track” consenting
programmes introduced to help the
country recover from the pandemic.
9

However, Government Ministers have
instead recommended direct referral
to the Environment Court to expedite
the resource consent process and we
are pursuing this option. Even under this
process, it is unlikely we will get a court
hearing until well into 2022.
In the meantime, we are also pursuing
our plans to automate container storage
at the terminal to increase our capacity
within the current land footprint. Our
automation project will utilise well-
proven technology already in use in
many of the world’s most efficient ports.
You can read more about these projects
on page 56.
Ruakura offers efficient option for
Waikato importers and exporters
Our capacity will be further extended
with the opening of the Ruakura
Superhub inland port in Hamilton in
mid-2022. The rail-connected hub is
being developed in a 50/50 partnership
between Port of Tauranga and Tainui
Group Holdings.
You can read more about this initiative
on page 32.
Frontline workers subject to
Covid-19 precautions
New Zealand’s evolving response to the
Covid-19 pandemic has had a significant
impact on Port of Tauranga operations.
In August, a Covid-19 outbreak in
Auckland prompted the Government to
order testing for all workers and visitors at
Ports of Auckland and Port of Tauranga.
At Tauranga, the order affected up to
6,000 people. Thankfully, health officials
saw sense and quickly modified the
order to apply to only those most at-risk
workers. Frontline workers remain subject
to mandatory testing at either seven-day
or 14-day intervals, depending on the role.
There are testing facilities on site and
Port of Tauranga monitors compliance
with the testing regime for its employees.
Currently around 50 people out of our
243 employees are subject to the testing
requirement, along with more than 500
other people port-wide.
With changes to legislation effective
14 July, this group of port workers is
also now required to be vaccinated,
with at least the first dose administered
by 30 September. Almost all of Port of
Tauranga’s eligible employees have been
vaccinated since vaccines became
available in March, and we are working
through options with a handful who are
refusing or unable to be vaccinated.
Port of Tauranga has always strongly
encouraged all port workers to get
vaccinated. We have provided them
with extensive health information,
hosted question and answer sessions
with local health experts, and offered
vaccinations on site, with time off to
get them if required.
Vaccination is a useful tool in the battle
to keep our people, their families and
the community safe from Covid-19, but
we will continue to rely on the other
measures we have been employing for
more than a year. They include frequent
deep cleaning, physical distancing
Our capacity will be
further extended with the
opening of the Ruakura
Superhub inland port in
Hamilton in mid-2022.
THE YEAR IN REVIEW:
Chair and Chief Executive’s Report to Shareholders
10
Port of Tauranga Limited – Integrated Annual Report 2021

11

We treat all visiting
vessels as if they have
Covid-19 on board and
will continue to do so.
from ship’s crew, the use of personal
protective equipment (PPE) and regular
Covid-19 testing.
We treat all visiting vessels as if they
have Covid-19 on board and will
continue to do so.
Cargo trends in 2021
Total trade increased 3.8% compared with
the previous year, growing to 25.7 million
tonnes, although container numbers were
4.1% fewer at 1.2 million TEUs.
Imports increased 4.0% to 9.4 million
tonnes, and exports increased 3.6% to
16.3 million tonnes.
Log export volumes bounced back from
the 2020 lockdown, increasing 14.3% to 6.3
million tonnes. Sawn timber and wood panel
exports decreased 12.4% in volume.
Dairy product exports decreased 1.9%
to just over 2.3 million tonnes, reflecting
a later-than-usual season and a
reduction in tranship volumes.
Kiwifruit exports increased 10.1%
in volume.
Oil product imports increased 11.6% in
volume, and cement imports increased
42.4% in volume, reflecting the strength
in the local economy.
Fertiliser imports decreased 16.9% in
volume, grain volumes decreased 8.9%
and protein and stock feed imports
decreased 10.4%.
Coal imports increased significantly as a
result of lower hydro energy production
and declining gas production.
Improving air and water quality
Efforts continue to improve air and water
quality in and around the port.
In recognition of growing concerns,
Port of Tauranga has decided to insist
that all methyl bromide fumigations
of export log stacks utilise recapture
technology. This is over and above
any regional or national requirements.
We expect methyl bromide use at
the Port to continue to decrease, with
news of a second log de-barker to be
commissioned by forestry exporters
next year. De-barking logs off site greatly
reduces the amount of pre-shipment
fumigation required, and avoids log
debris being deposited on the wharves
during handling, threatening water and
air quality. More detail on this issue can
be found on page 47 of this report.
THE YEAR IN REVIEW:
Chair and Chief Executive’s Report to Shareholders
12
Port of Tauranga Limited – Integrated Annual Report 2021

We are also investigating options for
stormwater treatment at the Mount
Maunganui wharves. While Port of
Tauranga complies with all of the
conditions of its stormwater resource
consents on both sides of the
harbour, we continue to explore ways
to further improve water quality.
Carbon emissions affected by
congestion
Our decarbonisation programme
was thwarted by container yard
congestion, with diesel use increasing
by nearly a third due to straddle
carriers having to shift containers
around and travel further within
the terminal. Electricity use also
increased due to refrigerated
containers staying longer than usual
at the terminal.
We managed to further reduce the
amount of waste going to landfill from
the Mount wharves, with volumes
halving again due to increased
recycling and reuse of waste products.
Overall carbon emissions (Scope 1,
2 and 3) increased 7.0% to 43,464
tonnes. The increase also reflects
the inclusion of emissions relating to
Timaru Container Terminal, which
became a 100% owned subsidiary
of Port of Tauranga Limited in
November 2020.
Carbon emission intensity (emissions
per cargo tonne) stayed reasonably
steady, increasing 1.2% from 1.63 to
1.65 kg CO
2
e per cargo tonne.
Our opportunity for further emissions
reduction in future lies in automation.
Electric stacking cranes have much
fewer emissions than an equivalent
manual straddle operation.
Upper North Island Supply Chain
Review
In late 2019, the Upper North Island
Supply Chain Strategy Independent
Working Group, appointed by the last
Government, recommended that Ports
of Auckland be moved to Northport.
A subsequent review, by economic
consultants Sapere, released in July
2020 suggested Manukau Harbour
was the best location.
The Ministry of Transport is
undertaking further policy analysis
on the options and the Minister
of Transport, Michael Woods, has
indicated a strategic decision will be
13

made by the next election in 2023 and
that it will be part of a broader national
freight strategy. We have stressed to
policy makers the need for pragmatic,
fact-based analysis and solutions,
rather than the politically-motivated,
interest-driven reports that have been
undertaken previously.
Outlook
The outlook for the next financial
year remains uncertain. The Port of
Tauranga team is confident that it has
resolved land-side congestion issues
for now. However, the disruption to the
international supply chain remains and
the problems in Auckland are unlikely to
be resolved in the near term.
Covid-19 precautions will continue
to impact efficiency and costs as we
continue to prioritise the health and
safety of our team members, their
whanau and the community.
We are confident that we are well-
positioned to tackle the looming
challenges. We will provide earnings
guidance for the 2022 financial year
at our Annual Shareholders’ Meeting
on 29 October 2021.
Thank you
Thank you to our customers for their
extraordinary patience over the past
year. Thank you also to our service
providers and business partners, who
have worked tirelessly to overcome
the many challenges. And we are
eternally grateful to the many dedicated
individuals, employed by Port of
Tauranga and others, keeping
New Zealand’s cargo moving.
Ngā mihi nui

Leonard Sampson
Chief Executive
David Pilkington
Chair
Our opportunity for
further emissions
reduction in future
lies in automation.
THE YEAR IN REVIEW:
Chair and Chief Executive’s Report to Shareholders
14
Port of Tauranga Limited – Integrated Annual Report 2021

David Pilkington
Chair
15

Integrated
Reporting
This integrated annual report for the 2021 financial
year outlines how Port of Tauranga creates value for
our shareholders over the short, medium and long term.
It describes our strategy, governance, performance
and outlook.
Port of Tauranga has chosen to follow the internationally-
recognised International Integrated Reporting Framework.
Following the International Integrated Reporting Council’s
recent merger with the Sustainability Accounting Standards
Board to form the Value Reporting Foundation
3
, we will look
to align our reporting with any updated standards or metrics.
We are well-prepared for the Government’s implementation
of mandatory climate-related disclosures from the 2023
financial year and already share much of the information that
we expect will be required by the new legislation.
In the past year, we have reassessed our material issues by
surveying our team members and our external stakeholders.
This will ensure our strategies focus on those issues that are
the highest priority for our stakeholders, and the ones that
we have the greatest ability to influence.
We have also refreshed our purpose, values and vision
statements to ensure they best describe our aspirations.
In the following pages, we examine the capitals, resources
or inputs that we use or affect: our relationships, our people,
our skills and knowledge, our environment, our assets and
infrastructure, and our finances. We outline the capabilities
and strengths we add, describe our activities and outputs,
and the resulting outcomes for our stakeholders. We define
“stakeholders” as anyone who has something to gain,
or something to lose, from Port of Tauranga’s activities.
Our carbon emissions are audited annually by Toitū
Envirocare using the CEMARS certification. Our future plans
include external assurance of other non-financial data.
The Board of Directors is committed to engaged, quality
governance. Our conversations are characterised by open
debate, respectful challenge and constructive criticism.
We have effective relationships with management, and
frequently engage directly with employees, customers and
other stakeholders.
Integrated reporting is a journey and we will continue to
increase our transparency to build credibility and trust.
Integrated thinking, actions and reporting will help us ensure
the best possible outcomes for our shareholders, employees,
customers, partners and community.
David Pilkington
Chair
3
https://integratedreporting.org
16
Port of Tauranga Limited – Integrated Annual Report 2021

17

Port of Tauranga’s purpose,
vision and values have been
reviewed in 2021. We are in
the process of realigning our
strategic framework to ensure
we will be able to reach our
goals for the next decade
and beyond. Our refreshed
framework will ensure we
focus our attention, effort and
resources in the right places,
and that our focus reflects the
priorities of our stakeholders.
OUR PURPOSE
Connecting New Zealand and
the world.
OUR VISION
Our purpose goes beyond profit
and is the key to Port of Tauranga’s
ongoing success. Our aspirations for
2030 are:
–
Drive Na
tional Prosperity
New Zealanders will value the port
as an asset that drives our nation’s
prosperity by providing the most
efficient access to global trade.
– Improve Community Wellbeing
We will impro
ve our community’s
wellbeing by providing jobs and
economic growth, as well as forming
effective partnerships to pursue a
shared vision of success.
–
Protect our Natural Environment
We will prot
ect and enhance our
natural environment. We will invest in
technology and embed sustainable
practices throughout our business.
– Respect Mana Whenua
We will recognise and respect
the mana whenua of the rohe and
acknowledge the kaitiakitanga of
iwi and hapu.
–
Nurture Our P
eople
We will be an attractive and
accessible workplace where talent is
nurtured. Our people will be proud to
work here and know their contribution
is valued. We will foster a culture of
empowerment, where health and
safety is at the forefront of everything
we do.
–
Provide Superior Customer
Service
We will be driv
en by our customers’
needs and create innovative supply
chain solutions. We will deliver on our
promises, provide superior service
and grow together.
–
Deliver Long-Term Value
We will deliver long
-term value
for investors through leading
environmental and ethical
performance, business resilience and
sound financial management.
COMPANY OVERVIEW:
Our Purpose
and Vision
18
Port of Tauranga Limited – Integrated Annual Report 2021

Our
Va l u e s
Our values define our fundamental beliefs and dictate
our behaviour as individuals and as an organisation.
We will achieve our vision by:
Taking pride and doing the right thing
–
Listening and working together
–
Creating better ways
–
Having a “safety always” mindset.
19

State Highway 1
State Highway 2
Golden Triangle

Rail Network
East Coast Main
Trunk Rail Network
KEY
Christchurch
Timaru
Invercargill
Wellington
Napier
Murupara
Hamilton
Auckland
Northport
Port of Tauranga
5
4
6
3
2
1
MuruparaMuruparaMurupara
Ruakura
Our
National
Network
COMPANY OVERVIEW:
By the numbers:
• 6,216 TEU total ground slots at Tauranga
Container Terminal, with
3,426 dedicated reefer connections
• 2,880 TEU capacity at MetroPort
Auckland
• 2.8km total quay length at Tauranga,
with 15 berths
• 243 permanent employees at
parent company
• 15ha of land in Rolleston near
Christchurch, 45ha of land in Auckland,
190ha of land in Tauranga
• 14.5m shipping channel depth in Te
Awanui Tauranga Harbour
• 53 straddle carriers and 9 container
cranes at Tauranga Container Terminal
20
Port of Tauranga Limited – Integrated Annual Report 2021

Port of Tauranga
50% OWNERSHIP
WITH KOTAHI
• Freight logistics group
incorporating Tapper
Transport, Dairy Transport
Logistics, Priority Logistics and
MetroPack
• 50% shareholding in MetroBox
• Operates New Zealand’s
largest intermodal freight hub
at Otahuhu in Auckland.
50% OWNERSHIP WITH MARSDEN
MARITIME HOLDINGS
• Deep water commercial port
near Whangarei.
6
1
3
50% OWNERSHIP WITH PORTS
OF AUCKLAND
• Online cargo
management system.
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
• New Zealand’s fourth largest
container terminal.
50:50 JOINT VENTURE WITH
TAINUI GROUP HOLDINGS
• Inland port connected by rail
to Tauranga and Auckland
• Part of the Ruakura Superhub
• Due to open in mid-2022.
OPERATED BY TIMARU
CONTAINER TERMINAL
• Intermodal freight hub
at Rolleston
• Rail connections to Timaru
Container Terminal and
rest of South Island
• New warehouse built for
Coda Group.
100% OWNERSHIP
• 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
• New oil terminal.
METROPORT
CHRISTCHURCH
5
6
5
1
6
1234
5
2
METROPORT
AUCKLAND
3
• New Zealand’s largest port and international freight gateway
• Container terminal, bulk cargo wharves and bunkering /bulk liquids facilities
• Extensive cargo storage and handling facilities
• Rail connections to Hamilton, Auckland and the central North Island
• Extensive road networks and coastal shipping connections.
1
PARENT COMPANY
6
21

How Port
of Tauranga
Creates Value
Can-do attitude
Sector-leading safety performance
Flexibility
History of sound commercial infrastructure
investment
Deep understanding of supply chain dynamics
Proven ability to execute strategy
Located close to cargo catchments and linked
by road, rail and sea
Cost-effective and competitive labour model
Strong and transparent governance framework
Strong financial and risk management
Our relationships
Our skills & knowledge
Our finances
Our assets & infrastructure
Our environment
Our people
INPUTS

OUR
CAPABILITIES
COMPANY OVERVIEW:
22
Port of Tauranga Limited – Integrated Annual Report 2021

Growing trade volumes based on long-term
freight agreements with key customers
Constructive partnerships with iwi and our
community, focussed on harbour health,
education and youth development
Consistent, reliable and efficient performance
through safe and resilient operations within a
competitive operating model
Innovative investments in other ports, inland
freight hubs, logistics and cargo handling
specialists
Strategic land holdings on both sides of
Tauranga Harbour and other key locations
Cargo handling equipment and storage capacity
that enables cargo growth
Proactive pollution prevention and focus on
energy efficiency and waste minimisation
Strong balance sheet
Job creation (direct and indirect)
Dividends paid to shareholders, including
regional ratepayers (through cornerstone
shareholder, Quayside)
OUR
OUTPUTS

Enduring, mutually beneficial partnerships
A proud, safe and motivated workforce
Highly effective logistics networks that meet
the needs of the New Zealand supply chain
Responsible environmental stewardship
Appropriate risk and return for
our shareholders
Prosperity for local, regional and
national communities
OUTCOMES FOR
OUR STAKEHOLDERS

23

Port of Tauranga’s business strategies
focus on the issues that matter most to
our community, iwi, customers, suppliers,
partners and investors.
In 2019, we engaged an independent
expert to consult our internal and external
stakeholders about the “material issues”
most likely to impact the way we create
or erode value. They include economic,
environmental and social issues.
In late 2020 and early 2021, we reassessed
these material issues in consultation
with more than 50 internal and external
stakeholders. Using a slightly different
methodology, we asked our stakeholders
to rank issues based on their importance
as well as the areas where Port of Tauranga
can make the biggest impact.
The top five material issues for Port of
Tauranga can be summarised as:
Health, safety and wellb
eing
– Encouraging a p
ositive health, safety
and wellbeing culture, where incidents
are prevented and wellbeing is
proactively managed
Resilient p
ort capacity and expansion
– Growth in cargo volumes; keeping
ahead of demand through resilient
operations, innovation and automation;
shipping lane widening /deepening;
extending wharves and adding capacity
Customer exp
erience and trust
– Fost
er enduring partnerships with
a diverse range of customers by
supporting a strong customer-centric
workplace culture
Governance, leadership and ethics
– Strong go
vernance supporting
strategy delivery, sound operations
and transparent business practices;
senior management engagement with
workforce; building teamwork and
recognising performance
Biodiversity protection
– Prote
cting water quality, marine
biodiversity, and habitats through
responsible stewardship, including
stormwater screening and low shipping
speeds in the harbour.
Our external stakeholders also rated border
stewardship as very important amidst the
risks posed by the Covid-19 pandemic.
We use the results of these stakeholder
surveys to inform our business strategies,
our risk management framework and our
reporting. They ensure we are focusing
on the things that matter most to our
stakeholders, and that we are putting
resources into the areas where we can have
the most impact or realise the greatest
opportunity. We have used them to guide
our refreshed vision and value statements.
What
Matters
Most?
OUR STAKEHOLDERS:
24
Port of Tauranga Limited – Integrated Annual Report 2021

25

Port of Tauranga’s Board of Directors
oversees and monitors the risks to Port
of Tauranga and its stakeholders, and
ensures that the necessary mitigations
have been put in place.
Risks are continuously evolving. Port of
Tauranga’s top strategic risks are:
•
Maintaining the health, safety and
wellbeing of our p
eople
•
Protecting our s
ocial licence to
operate
•
Legal and regula
tory risk
•
A natural disaster e
vent
•
Commercial and business risk due
to global e
conomic or geopolitical
situations
•
Malicious cyber a
ttack
•
A vessel f
oundering in the channel.
More detail on the potential
consequences and how we mitigate
these risks is outlined in the Corporate
Governance Statement on our website:
www.port-tauranga.co.nz
The most likely natural disaster events
in the Bay of Plenty would be a major
storm or a seismic event. Tauranga
City Council has undertaken extensive
modelling based on a tsunami of up to
14 metres resulting from a magnitude 9
earthquake on the Kermadec fault line,
which it estimates has a 1-4% chance
of occurring in the next 100 years. It
shows the effect on the inner harbour
would be significantly lower than on
the ocean side.
Climate-related financial disclosures
New reporting standards on climate-
related financial disclosures are
being developed by the New Zealand
External Reporting Board, with help
from the Ministry for the Environment
4
.
These standards will closely follow the
recommendations of the Taskforce for
Climate-Related Financial Disclosures
5
.
There are two major categories of
climate-related impacts:
•
The risks and opportunities related to
New Zealand’s transition to a lower-
carbon economy
•
The risks and opportunities related
to the physical impacts of climate
change.
Port of Tauranga relies on the projections
of climate change from multiple
agencies, including the Ministry for the
Environment, the Ministry for Primary
Industries and the National Institute
of Water and Atmospheric Research
(NIWA). We also consider scenario
planning by the Bay of Plenty Regional
Council and the Tauranga City Council.
The regional impacts from climate
change include an increased likelihood of
heatwaves, increased storm intensity, and
droughts that are more frequent, longer
and more intense. More frequent extreme
rainfall events are also a possibility.
Current models show potential for
flooding along wharf edges, on Port of
T
auranga land at the southern end of
the Mount Maunganui wharves, and to
the south of the container terminal at
Sulphur Point (potentially affecting road
transport access). Sea level rise analysis
shows there is likely to be minimal
impacts to current wharf structures
under most scenarios.
Our efforts to reduce greenhouse
gas emissions are outlined in Our
Environment on page 46
.
Managing
Risks and
Opportunities
4
https://environment.govt.nz/what-government-is-doing/areas-of-work/climate-change/mandatory-climate-related-financial-disclosures/
5
https://environment.govt.nz/assets/climate-change/FINAL-2017-TCFD-Report-11052018-2.pdf
26
Port of Tauranga Limited – Integrated Annual Report 2021

ExamplesPotential impacts
Risks from the transition to a
lower-carbon economy
• Increased reporting requirements
• Costs and implementation of new
technology
• Changing stakeholder expectations
• Changes to Government and regulator
policies
• Increased compliance costs
• Increased capital expenditure and
operating costs
• Reduced demand from customers
and/or investors
Transition opportunities• Greater efficiencies
• Increased recycling
• Reduced energy use
• Changing stakeholder expectations
• Technological improvements and
innovations
• Lower operating costs
• Improved safety
• New revenue sources
• Increased demand from customers and/or
investors
Physical risks from the impacts
of climate change
• Increased severity and occurrence
of extreme weather events
• Rising sea levels
• Biosecurity incursions due to warmer,
wetter or drier conditions
• Increased costs and operational impact of
damaged equipment and infrastructure
• Increased insurance premiums
• Loss of useable land
• Impact on cargo volumes from decreased
primary production
• Reduction in health and lifestyle quality
Physical opportunities• Investment in more resilient equipment,
infrastructure and technologies
• Lower operating costs
• New or increased revenue streams as a result
of increased productivity or new cargoes.
CLIMATERELATED IMPACTS
27

28
Port of Tauranga Limited – Integrated Annual Report 2021

Improving
community
wellbeing
Capital #1
OUR RELATIONSHIPS
VISION
We will improve our community's
wellbeing by providing jobs and
economic growth, as well as
forming effective partnerships to
pursue a shared vision of success.
We will recognise and respect
the mana whenua of the rohe and
acknowledge the kaitiakitanga of
iwi and hapū.
OUR RELATIONSHIPS
MATERIAL
ISSUES
– Iwi engagement
– Community
engagement
– Community
investment
– Responsible
supply chain
–
Ec
onomic
contribution.
Port of Tauranga has built long-term, mutually
beneficial relationships with a diverse range
of customers, communities and business
partners. We share information in order to help
us plan for the future in a way that best meets all
stakeholders' needs. In the following pages we
describe our progress in pursuing our
relationship strategies.
29

Customer relationships
for the long-term
Port of Tauranga has long-term freight agreements
with its key customers.
They include Kotahi, New Zealand’s largest containerised freight
exporter, which is committed to Port of Tauranga through to
mid-2031. Kotahi manages freight on behalf of more than 40
importers and exporters, including its shareholders Fonterra
and Silver Fern Farms.
We also have operating agreements in place with Oji Fibre
Solutions, New Zealand’s biggest producer of pulp, paper and
packaging products. Oji is committed to consolidating the majority
of its import and export volumes through Port of Tauranga through
to 2028.
Oji’s relationship with Port of Tauranga dates back to the 1950s
and Oji leases a purpose-built, 22,000m
2
warehouse at Port of
Tauranga’s container terminal, as well as other facilities nearby.
Another purpose-built facility, a coolstore at the Mount Maunganui
wharves, is leased to Tauranga Kiwifruit Logistics, which handles
exports for Zespri International.
Port of Tauranga also has enduring relationships with the major log
exporters, which lease parts of the Mount Maunganui wharves for
log storage and handling.
These long-term relationships give Port of Tauranga the confidence
to invest further in expanding our cargo capacity and investing in
infrastructure and equipment. These relationships have brought
significant benefit to New Zealand, including the introduction of more
efficient big ships and, with them, a lower carbon supply chain.
Capital #1
OUR RELATIONSHIPS
Long-term freight agreements in
place with major exporters Kotahi,
Oji Fibre Solutions and Zespri
30% increase in
Facebook page followers
Joint venture with Tainui Group Holdings
developing Ruakura Inland Port near
Hamilton, due to open mid-2022
18
Tertiary scholarships
awarded
2,500+
People hosted on port tours
30
Port of Tauranga Limited – Integrated Annual Report 2021

Port tours extend to
winter season
Port of Tauranga’s summer holiday port tours are
usually sold out, with ticket proceeds going to one of
our favourite charities.
It’s the only way members of the public can see beyond the security
gate, as the whole port site is a Customs-controlled area.
In 2021, we extended our tour offer to the winter school holidays
and raised money for Waipuna Hospice. Over the course of the
year, we hosted a total of more than 2,500 people on port tours.
Working with Tauranga
Moana iwi and hapū
Port of Tauranga works both formally and informally
with Maori organisations in the rohe, including
the three iwi with mana whenua status in Tauranga
Moana – Ngāi Te Rangi, Ngāti Ranginui and
Ngāti Pūkenga.
The Ngā Mātarae Charitable Trust was founded six years ago to
balance the impact on the cultural and spiritual values of local iwi
and hapū from the harbour capital dredging project completed in
2016. The Trust brings together the three iwi, the Port, the Mauao
Trust and the Tauranga Moana Iwi Customary Fisheries Trust.
The Trust is funded through an annual grant from the Port and
offers scholarships to tertiary students studying subjects that
could benefit Te Awanui Tauranga Harbour. In 2021, scholarships
were awarded to eight iwi tertiary students in their first, second
or third year of study.
The Trust also sponsors organisations and projects to improve
habour health, such as supporting Manaaki Te Awanui with ongoing
biosecurity research work.
Port of Tauranga also provides educational scholarships through
the Turirangi Te Kani Memorial scheme, established more than
30 years ago in honour of a much-respected kaumatua. In 2021,
the Port provided 10 scholarships under this scheme to students
in their first, second or third year of study.
Supporting
community causes
Port of Tauranga is a long-time supporter of
community organisations that assist the most
vulnerable in our community.
Port of Tauranga donates money every Christmas to the Tauranga
Community Foodbank in lieu of giving gifts to our customers and
suppliers. Last Christmas, in recognition of the increased hardship
in our community, we increased our donation to $15,000. This
was on top of the $25,000 one-off donation we made during the
Covid-19 lockdown.
As a result of the lockdown, we also gifted cleaning supplies to
SPCA Tauranga, and face masks and gloves to local marae to
protect their community workers in their welfare work.
Sponsoring local events
At Port of Tauranga, we believe events help create a
vibrant community.
The Company is a founding gold sponsor of the biennial Tauranga
Arts Festival, featuring local and guest performances in music,
theatre and comedy, as well as a range of public talks and workshops.
We sponsored the 2021 New Zealand Marine Sciences Society
Conference, hosted in Tauranga.
In the coming year, Port of Tauranga will take over naming rights
of the National Jazz Festival, held in Tauranga every Easter.
Port of Tauranga’s sponsorship has also helped provide and protect
valued community infrastructure and equipment. Past projects
include the Pilot Bay boardwalk, the Bay of Plenty TECT rescue
helicopter’s specialist winch, floodlighting at the Bay Oval cricket
ground, patrol boats for the Tauranga Yacht and Power Boat Club,
and enhancement of walking tracks on Mauao.
31

Feature:
Ruakura
Inland Port

Port of Tauranga’s partnership with Tainui
Group Holdings will better connect the
Auckland, Waikato and Bay of Plenty regions.
The Ruakura Superhub being developed
by Waikato-Tainui a few kilometres from
downtown Hamilton comprises an inland
port, a logistics and industrial hub, and
associated services.
Earthworks are well under way on the
development’s roads, stormwater
infrastructure and the inland port.
The nine-hectare first stage of the inland
port is due to open mid-2022 and future
stages will see it grow to around 30 hectares.
It will have two 800 metre rail sidings off the
East Coast Main Trunk rail line.
The inland port is being developed by a
50/50 joint venture between Tainui Group
Holdings and Port of Tauranga.
Port of Tauranga Chief Executive, Leonard
Sampson, says the Port is investing in the
development for economic, social and
environmental reasons.
“The Superhub and inland port will help
us better service importers and exporters
in the Auckland and Waikato regions.
They will be able to use it and the existing
rail network to connect with the big ship
services calling at Tauranga,” he says.
“Bigger ships are more efficient and have
fewer carbon emissions, and utilising rail will
remove truck movements off regional roads.”
The inland port will allow Port of Tauranga
to grow cargo capacity as container
volumes increase. It will be used as a cargo
consolidation and staging area.
Leonard says that Port of Tauranga and
Tainui Group Holdings have strongly
aligned values and interests.
“We see this as a long-term, strategic
partnership. Our joint venture combines
the Port’s experience and expertise in
developing and operating ports, Waikato-
Tainui’s deep regional connections and
commercial acumen, and the site’s sheer
scale and connectivity.”
Capital #1
OUR RELATIONSHIPS
32
Port of Tauranga Limited – Integrated Annual Report 2021

Port of Tauranga Chief Executive,
Leonard Sampson, says the Port
is investing in the development
for economic, social and
environmental reasons.
The Ruakura Superhub under development in Hamilton, with the inland port in the foreground
33

34
Port of Tauranga Limited – Integrated Annual Report 2021

Nurturing
our people
MATERIAL
ISSUES
– Health, safety and
wellbeing
– Employee
engagement and
capacity
– Governance,
leadership and ethics
–
Diversity and
inclusion
– Border st
ewardship.
VISION
We will be an attractive and
accessible workplace where
talent is nurtured. Our people
will be proud to work here
and know their contribution is
valued. We will foster a culture
of empowerment, where health
and safety is at the forefront of
everything we do.
Capital #2
OUR PEOPLE
Port of Tauranga aims to recruit talented
people, nurture them, retain them and recognise
them. Our wellbeing programme promotes the
physical, mental and emotional health of our
team members and their whanau. Our positive
health and safety culture proactively manages
and mitigates risks. We deal with any challenges,
emergencies or crises with thorough planning,
preparation and practice. In the following pages
we describe our progress in pursuing our
people, wellbeing and safety strategies.
OUR PEOPLE
35

Workers’ wellbeing
in focus
Covid-19 and congestion have put an enormous
amount of pressure on our team members over the
past year and our employee wellbeing programme,
ShipShape, has been there to support their physical,
mental and emotional health.
Regular newsletters promote coping strategies and share
online resources, as well as providing a sense of teamwork and
healthy competition.
ShipShape was launched in 2018 to bring together existing and
new wellbeing initiatives and is driven by a committee of team
members from across the business. This year, the programme
won silver accreditation under the WorkWell framework of Toi
Te Ora Public Health.
Recent ShipShape initiatives include a vegetable growing
competition, a darts contest, talks by psychologist Nigel Latta,
sports team sponsorship, free yoga sessions and on site massages.
Through ShipShape, Port of Tauranga is now a partner of Dignity.
Dignity works to increase accessibility to period products in
workplaces and community organisations in a "buy one, give one"
initiative. For every box of sanitary items that Port of Tauranga
purchases, Dignity provides the equivalent to youth and community
groups throughout New Zealand.
Port of Tauranga employees can access subsidised health
insurance, free health assessments and skin checks, flu
vaccinations, financial advice and an exercise membership
subsidy. The Company also provides a free, confidential employee
assistance programme through Vitae.
Capital #2
OUR PEOPLE
9.6%
staff turnover (more than
half due to retirement)
57.8%
of job vacancies
filled internally
19%
of workforce is female
(up from 18% last year)
Zero
Total Recordable Injury Frequency Rate
per million hours worked
(Port of Tauranga employees)
13.8
Total Recordable Injury Frequency Rate
per million hours worked (Port of Tauranga
employees and contractors combined)
36
Port of Tauranga Limited – Integrated Annual Report 2021

Protecting our people
from discrimination
Port of Tauranga strives to provide an inclusive
workplace that recognises and values different skills,
abilities, genders, ages, ethnicities and experiences.
We have implemented a suite of policies to help avoid unlawful
or unacceptable behaviour in the workplace, including bullying
and harassment.
In the past year, team members at all levels of the organisation have
undergone unconscious bias training. We have also rolled out an
online learning and development programme that includes training
modules on ethics and discrimination.
Injury rate cause for
concern
Safety is one of our core values and we work
constantly to identify, understand and minimise
hazards. All near misses and incidents are recorded,
analysed and acted on.
Unfortunately, our combined Total Recordable Injury Frequency
Rate (TRIFR) increased due to a handful of injuries among straddle
drivers encountering potholes at the container terminal.
The high traffic volumes and congestion at the container terminal
have caused additional wear and tear on the pavement as
straddle movements have increased. Our civil works team inspects
the site daily and any problems are immediately fixed, or blocked
off until they can be repaired. On top of this, we have a multi-
disciplinary team looking at short-term and long-term fixes
for pavement issues.
Our employees recorded a TRIFR of zero and our team reporting
culture remains strong, with a 31% increase in employee-led
operational risk interventions across the port. Nine out of ten
respondents in our last employee engagement survey agreed that
the Company consistently demonstrates a genuine commitment
to health and safety.
The coming year will see the development of a comprehensive
health and safety strategy to take us to 2024 and beyond.
Male Female
0
10
20
30
40
50
60
70
80
70+60–6950–5940–4930–3920–29
Age and Gender Profile
Male Female
0
30
60
90
120
150
180
> 4031–4021–3011–20< 10
Length of Service (Years)
37

Feature:
Long-time Chief
Executive Mark Cairns
sets sail

Mark Cairns retired as Port of Tauranga’s
Chief Executive in June after 16 years at the
helm of New Zealand’s most successful port.
On announcing his retirement, Mark said he
felt the time was right to hand over to the
next generation to take Port of Tauranga
into the future.
“Port of Tauranga is in excellent shape.
I’m incredibly proud of our people and the
positive outcomes we have achieved for
our customers and our community,” he said.
“I will certainly miss my colleagues but I am
excited to see where the Company goes
next, driven by the creative and innovative
team we have built.”
During Mark’s tenure, the Company has
grown from a regional bulk export port to
New Zealand’s international cargo hub. In
2005, when he joined Port of Tauranga
from C3 Limited, the Port handled 12.6
million tonnes of cargo and 438,214 TEUs.
His legacy includes strong relationships
with customers and suppliers, which
have helped the Company plan for future
capacity with confidence. He kept a
strong focus on future opportunities, while
maintaining an industry-leading safety
record and the highest port productivity
rates in Australasia.
He also oversaw an average compounding
Total Shareholder Return of 19% per year,
with market capitalisation increasing from
$665 million to 4.782 billion on his departure.
Mark was named Chief Executive of the
Year in the 2012 Deloitte Top 200 Business
Awards and was winner of the Caldwell
Partners Leadership Award in the 2019
Institute of Finance Professionals Awards.
He is pursuing a governance career and
has joined the Boards of several major
New Zealand companies.
Capital #2
OUR PEOPLE
38
Port of Tauranga Limited – Integrated Annual Report 2021

“I will certainly miss my colleagues
but I am excited to see where the
Company goes next, driven by
the creative and innovative team
we have built.”
39

40
Port of Tauranga Limited – Integrated Annual Report 2021

Proving Superior
Customer Service
MATERIAL
ISSUES
– Customer
experience and trust
– Resilient port
capacity and
expansion
– Geographic reach
– Supply chain
efficiency.
VISION
We will be driven by our
customers' needs and create
innovative supply chain
solutions. We will deliver on
our promises, provide superior
service and grow together.
Capital #3
OUR SKILLS AND KNOWLEDGE
Port of Tauranga's integrated view of the
supply chain leads us to invest in other ports,
inland freight hubs, cargo handling expertise,
transport operations and logistics services.
The aim is to reduce waste in the supply chain
and offer our customers the most efficient and
environmentally sound option for their freight. In
the following pages we describe how we use our
skills and knowledge to pursue our strategies.
OUR SKILLS AND KNOWLEDGE
41

Capital #3
OUR SKILLS AND KNOWLEDGE
Setting records with
our partners
Port of Tauranga and its container terminal partners
helped long-term customers Maersk and Kotahi to
relieve export supply chain congestion in May.
A record volume of export containers departed Port of Tauranga,
including the largest shipment of refrigerated containers to ever
leave the port.
A New Zealand record volume lift of 5,326 TEU containers with a
record 1,914 refrigerated TEUs, was loaded onto the Maersk Shams.
More than 80% of the containers belonged to Kotahi customers
and were mostly dairy products.
Kotahi’s Chief Executive, David Ross, says the global supply chain
disruption is causing schedule slippage, loss of capacity and
container shortages for some exporters.
“Our strong partnership with Maersk and Port of Tauranga
continues to enable us to access additional capacity, enabling
trade between New Zealand and global markets and taking
pressure off the supply chain in both the North and South Islands,”
he says.
“We can bring in extra capacity at a time when most of the world
is seeing the opposite. It is a tremendous endorsement of our
partnerships that we could find innovative ways to manage strong
export volume.”
Port of Tauranga is the only New Zealand port able to accommodate
the largest container vessels to visit here. This follows our six-year,
$350 million capital expenditure programme – completed in
2016 – that included dredging the shipping channels, extending the
container wharves and adding more cargo handling equipment.

Linking shippers to
national networks
Since September, container vessel delays have had
significant operational impacts on Port of Tauranga.
Port of Tauranga has done its best to accommodate diverted
import and export cargoes from Auckland, and process vessels
arriving "off window". Container vessels have been sent to our
Mount Maunganui bulk cargo wharves, and further afield to
Northport in Whangarei, to try to alleviate pressure at peak times.
Port of Tauranga’s ability to respond was constrained at times by
the lack of additional rolling stock and train drivers for the rail link
between Tauranga and Auckland.
KiwiRail was able to introduce additional trains in May 2020, and we
have increased train services from 72 a week to up to 90 a week to
eliminate land-side delays.
The rail link connects the Tauranga Container Terminal with our
market-leading inland freight hub, MetroPort Auckland. We are
replicating the model with the establishment of the Ruakura Inland
Port, currently under construction at the Ruakura Superhub near
central Hamilton.
42
Port of Tauranga Limited – Integrated Annual Report 2021

Sharing our expertise
Port of Tauranga participates in multiple local and
national forums to address the issues facing our
industry, our communities and the national economy.
During the Covid-19 pandemic, we have lent our expertise to a
range of government-related forums and working groups.
We are heavily involved in port sector safety strategy and hold
leadership roles in the Port Industry Association and Maritime NZ/
WorkSafe joint port sector groups.
We also take an active role in regional and national business
organisations such as Priority One, the Bay of Plenty region’s
economic development agency.
Working with
enforcement agencies
Port of Tauranga works closely with New Zealand
Police and Customs to stop threats entering New
Zealand and detect potential criminal activity within
the port gates.
In the past year, Customs has taken on the role of monitoring
compliance with Covid-19 precautions. Dozens of Customs officers
have been recruited to assist ship’s crew and port operational
staff to reduce the risk of Covid-19 entering New Zealand through
the port. They work 24 hours/7 days a week to ensure quarantine
orders are being followed.
Other government agencies with a regulatory role in border
protection and safety at the port include the Ministry for Primary
Industries, WorkSafe, Maritime NZ, the Tauranga Harbourmaster
(employed by the Bay of Plenty Regional Council), the local District
Health Board’s Public Health Unit and the Ministry of Health.
Container crane rate of
29.7
moves per hour (compared with
35.8 moves per hour in 2020)
Record volume lift of
5,326
TEU (twenty-foot equivalent) containers loaded
on the Maersk Shams in May, a NZ record
43

44
Port of Tauranga Limited – Integrated Annual Report 2021

Protecting Our
Natural Environment
Port of Tauranga prevents air and water
pollution through dust suppression, stormwater
management and spill prevention. We support
industry efforts to reduce fumigation, while
ensuring the port community is vigilant in
detecting pest incursions that threaten our way
of life. We choose energy efficient equipment
where possible, minimise waste and seek to
reduce our carbon emissions across all areas of
our business. In the following pages, we describe
our progress in pursuing our environmental and
climate change strategies.
MATERIAL
ISSUES
– Biodiversity
protection
– Biosecurity
– Air and water quality
management
–
Local impa
cts
–
Managing carb
on
emissions
–
Climate a
ction.
VISION
We will protect and enhance our
natural environment. We will
invest in technology and embed
sustainable practices throughout
our business.
Capital #4
OUR ENVIRONMENT
OUR ENVIRONMENT
45

Carbon emissions
increase due to
congestion
Congestion in the container terminal had a negative
impact on carbon emissions
6
.
Emissions from diesel use at the terminal increased 33% on
an annual basis as straddle carriers were forced to make more
movements and stack containers in areas not usually utilised
for cargo storage.
The increase in diesel use was offset by savings in other areas,
including further reductions in waste removed to landfill. Waste
volumes were chopped in half and now sit at about 27% of the
volume sent to landfill two years ago.
Overall reported emissions also reflect the fact that the parent
company now has 100% ownership of Timaru Container Terminal,
and all its emissions. Kilograms of carbon emissions per cargo
tonne increased increased just 1.2% to 1.65.
Total Scope 1, 2 and 3 emissions
6
were 43,464 tonnes CO
2
e, a 7.0%
increase on last year and broadly in line with the 6.1% increase in
cargo throughput (including Timaru).
Port of Tauranga’s main sources of carbon emissions are rail freight,
diesel use (primarily straddle carriers and marine fuel), electricity
and waste to landfill.
Airshed declared for
Mount industrial area
Concerns about air quality in industrial areas led to
the establishment of the Mount Maunganui Airshed
in November 2019.
The airshed declaration allows the Bay of Plenty Regional Council
to better manage discharges to air from industries operating within
the airshed.
The Council has 10 air quality monitors in the area, testing a range of
parameters. According to data from the monitors, air pollution from
local shipping has been reduced dramatically by the international
introduction of new low sulphur fuel limits in January 2020.
The council has proposed changes to its Regional Air Plan. Some
of the changes, referred to as “Plan Change 13”, are currently being
considered by the Environment Court.
The community of Whareroa Marae, located next to Tauranga
Airport not far from the port, has been campaigning against the
presence of heavy industry in the area. Port of Tauranga has joined a
working group with representatives from the marae, the regional and
city councils, environmental and community groups, and industry.
Capital #4
OUR ENVIRONMENT
6
Scope 1 measures the direct emissions of our activities on site. Scope 2 measures carbon consumed but not created (e.g. electricity
from the national grid). Scope 3 measures emissions from other parts of our supply chain (e.g. rail freight).
7.0%
increase in total carbon emissions
due to congestion and business growth
49.9%
reduction in waste sent to landfill
46
Port of Tauranga Limited – Integrated Annual Report 2021

Preventing pests from
entering New Zealand
Port of Tauranga’s award-winning biosecurity
excellence partnership aims to build a port
community prepared to prevent any pest incursions
through the port.
The partnership involves Port of Tauranga, the Ministry for Primary
Industries, Kiwifruit Vine Health, primary produce organisations,
scientists and local government.
The partnership is focused on educating the port community.
It publishes an annual calendar featuring the top 12 unwanted
pests, other publications, and runs an annual Biosecurity Week
to raise biosecurity awareness among the port community.
Port of Tauranga also supports the Tauranga Moana Biosecurity
Capital initiative, which seeks to raise biosecurity awareness
throughout the wider western Bay of Plenty.
By knowing what to look for, our community can help keep bugs
out of our region.
Cleaner air for our
people and our
neighbours
Port of Tauranga’s dust reduction programme is
showing positive results in air quality.
The Port is working with port users to minimise fine dust becoming
airborne from on-wharf activities, especially bulk cargo handling
and log yard activities. Since 2017, our wharf sweeping has
increased five-fold, and other port users have also increased their
cleaning. Recent improvements include upgrading a bark collection
plough to a new unit that suppresses dust with high pressure
water sprays, port user education on preventing dust and new log
handling technology to reduce dust generation.
Log yard roadways have been moved to prevent wind tunnelling
effects, and concrete barriers have been introduced to keep
unnecessary traffic out of dusty areas. Bulk cargo handling
procedures, including wind limits, have been reviewed and updated.
They include visual wind alarms, equipment rules and the use of
water suppression on hoppers when handling dusty cargoes.
47

Feature:
Tauranga still
offers lowest carbon
supply chain

Port of Tauranga’s bigger ship services offer a lower
carbon supply chain for importers and exporters.
By far the largest proportion of carbon emissions in New Zealand’s
container supply chain relates to the “blue water” or ocean-going
component of the cargo journey.
Landside emissions from road or rail transport contribute only a
small percentage of the total carbon emissions related to container
imports and exports.
Port of Tauranga is the only New Zealand port able to handle larger
container vessels and give shippers access to their higher fuel
efficiency and lower emissions.
Port of Tauranga regularly receives visits from vessels with
capacity of around 9,500 TEUs. The carbon footprint for a 20 foot,
15 tonne dry container from Shanghai to Port of Tauranga on a ship
of that size is smaller than the same box shipped from Shanghai
to Auckland on a 4,500 TEU vessel. This is true even taking into
account the emissions from transferring the container by rail from
Tauranga to Auckland.
Capital #4
OUR ENVIRONMENT
48
Port of Tauranga Limited – Integrated Annual Report 2021

49

CO
2
e calculations are based on a 20 foot, 15 tonne container shipped on a typical container vessel
size of 3,000-4,999 TEUs (via Auckland) and 8,000+ TEUs (via Tauranga)
Import cargo from
China to South Auckland
C0
2
emission comparison
ORIGIN
China
MEDIUM SHIP
RAIL TRANSPORTRAIL TRANSPORT
BIG SHIP
Wiri
SOUTH AUCKLAND
TOTAL:
2,429 C0
2
e (kg)
MetroPort
AUCKLAND
TOTAL:
1,945 C0
2
e (kg)
IMPORT CONTAINER
1,837
C0
2
e (kg)
2,404
C0
2
e (kg)
Auckland
19.9%
Fewer emissions
Capital #4
OUR ENVIRONMENT
50
Port of Tauranga Limited – Integrated Annual Report 2021

Export cargo from
Hamilton to China
C0
2
emission comparison
DESTINATION
China
ORIGIN
Hamilton
MEDIUM SHIPBIG SHIP
ROAD TRANSPORT
RAIL TRANSPORT
EXPORT CONTAINER
1,837
C0
2
e (kg)
2,404
C0
2
e (kg)
Auckland
TOTAL:
2,660C0
2
e (kg)
TOTAL:
1,893 C0
2
e (kg)
28.8%
Fewer emissions
51

52
Port of Tauranga Limited – Integrated Annual Report 2021

Driving National
Prosperity
Port of Tauranga's investment in capacity
to accommodate bigger ships has proven a
successful strategy for growth. We spent more
than $350 million over six years to prepare
for larger vessels, which started calling in late
2016. The investment included dredging, wharf
extensions and new ship-to-shore cranes. In
the following pages, we describe our progress
in pursuing our infrastructure development
strategies, including preparing for the next stage
of cargo growth.
MATERIAL
ISSUES
– Resilient port
capacity and
expansion
– Geographic reach
– Cyber and data
security.
VISION
New Zealanders will value the
port as an asset that drives our
nation's prosperity by providing
the most efficient access to
global trade.
Capital #5
OUR ASSETS AND INFRASTRUCTURE
OUR ASSETS AND INFRASTRUCTURE
53

Capital #5
OUR ASSETS AND INFRASTRUCTURE
Avoiding truck gridlock
Port of Tauranga’s new container truck exchange
opened in January to speed up cargo deliveries and
collections from the terminal.
The new exchange, on the site of a demolished cargo shed at the
north end of the terminal, has 10 lanes – double the number at the
previous exchange. It works in tandem with our Vehicle Booking
System (VBS) implemented in April 2019. Together, they speed up
truck turnaround times and incentivise cargo movements outside
of peak traffic periods.
Since the VBS was introduced, average truck turnaround times
have been well under 20 minutes – although yard congestion from
September to December stretched out average waiting times to
around 30 minutes at times.
The VBS also incentivises truck visits outside peak hours, avoiding
congestion on roads surrounding the port.
Much of the increase in cargo volume in recent years has been able
to be absorbed without adding significant truck movements on
local highways, due to the use of rail and the growth in transhipment
(where containers are transferred between ships at Tauranga).
We continue to lobby for state highway designation for Totara
Street, a busy route that serves our Mount Maunganui wharves,
the neighbouring industrial area and nearby residential area. Such
a designation would help fast-track improvements to safety,
capacity and intersections.
1,307
ship visits (decreased 13.7% from 1,515)
106
fewer container ships between September 2020
and June 2021 compared to previous year
4.1%
decrease total TEUs to 1,200,831
54
Port of Tauranga Limited – Integrated Annual Report 2021

Choosing energy-
efficient equipment
Our first hybrid container straddle carriers have
proven to be reliable, quiet, comfortable and more
fuel efficient.
We took delivery of three Kalmar hybrid straddle carriers in early
2020 and they have proved popular with operators, with one of
them averaging 21.5 hours of use a day.
Our modern fleet of ship-to-shore gantry cranes have
sophisticated electric motors that re-generate up to 700 kw
of electricity when lowering a container.
Excess electricity can be made available to adjacent cranes
lifting containers, or fed back into the terminal to power
refrigerated container connections.
Our light vehicle fleet is progressively being converted to electric
or hybrid models.
Land holdings
Port of Tauranga owns 190 hectares of land on both
sides of Tauranga Harbour, with about 40 hectares
still available for development.
We believe container throughput could reach 2.8 to 3.0 million
TEUs in future (more than double the existing throughput) through
land reconfiguration, stacking cranes and other technology.
At the Mount Maunganui wharves, we still have storage space
available to accommodate growing cargoes, including secure
space for marshalling imported cars.
55

Feature:
Preparing for
future cargoes

Port of Tauranga is pursuing two major capital
projects to more than double the capacity
of the Tauranga Container Terminal.
The Company has applied for resource
consent to extend the container berths to
the south of the existing wharves. Stage one
of this project would convert 220 metres of
cargo storage land, at a cost of around $68.5
million. It will create an estimated 368 jobs
through the construction phase, and more
than 81 permanent jobs post-completion.
Last year, Port of Tauranga applied for
consideration under the Government’s
“shovel ready” and “fast track” consenting
programmes introduced to help the country
recover from the Covid-19 pandemic.
However, Government Ministers have
instead recommended direct referral to the
Environment Court to expedite the consent
process and we are pursuing this option.
In the meantime, we are also exploring
our options to install automated stacking
cranes in the area directly behind the new
berth extension.
Introducing automated equipment and
technologies will help us grow capacity
within the existing footprint, improve safety,
reduce operating costs and reduce
carbon emissions.
Container terminal capacity relies on berth
availability, storage yard space, productivity
and dwell (storage time). Modelling
undertaken in 2018 by container terminal
experts TBA Group shows that Port of
Tauranga could grow container throughput
to between 2.8 and 3.0 million TEUs on
the current site.
The automation project under
consideration utilises technology already
well-proven in some of the world’s most
efficient ports. Automated or electric
stacking cranes will place containers to
or from trucks in a staging area, and then
deliver or pick up containers to manual
straddle carriers servicing the ship-to-
shore cranes. The technology will be
introduced in blocks, timed to match
container growth.
Capital #5
OUR ASSETS AND INFRASTRUCTURE
56
Port of Tauranga Limited – Integrated Annual Report 2021

Tauranga could grow container
throughput to between 2.8 and 3.0
million TEUs on the current site.
57

58
Port of Tauranga Limited – Integrated Annual Report 2021

Delivering Long
Term Value
Port of Tauranga provides sustainable shareholder
returns through revenue growth from diverse
income streams and we are constantly seeking new
customers and cargoes. Through our cornerstone
shareholder, Quayside Holdings, we share the financial
benefits of the Port's success with the residents and
ratepayers of the Bay of Plenty. In the following pages,
we outline our progress in pursuing our economic
strategies, as well as sharing our financial statements
of performance.
MATERIAL
ISSUES
– Financial
performance
– Capital base
– Shareholder
returns
– Supply chain
efficiency.
VISION
We will deliver long-term
value for investors through
leading environmental and
ethical performance, business
resilience and sound financial
management.
Capital #6
OUR FINANCES
OUR FINANCES
59

Capital #6
OUR FINANCES
$102.4million
(increased 15.4% from $88.7 million )
Dividends paid to
regional ratepayers
More than half of Port of Tauranga’s shares are
owned by local ratepayers.
Port of Tauranga’s cornerstone shareholder is Quayside Holdings,
the investment arm of the Bay of Plenty Regional Council.
Quayside received dividends of $45.7 million over the past year
from its investment in the Port, and has received more than $905
million in total since the Company was listed in 1992.
Dividends paid by Quayside to the Council represent around
25% of the Council’s annual income.
In addition, Quayside has used its 54.14% shareholding in Port
of Tauranga to establish a $200 million infrastructure fund
to help pay for regional assets. It was set up in 2008 through
a share issue by Quayside and has been used to kickstart
regional projects such as the Opotiki Harbour transformation,
the Tauranga tertiary education campus, the Tauranga marine
precinct and the Scion Innovation Hub in Rotorua.
Port of Tauranga is also the city’s largest ratepayer, contributing
more than $2.5 million in rates in the past financial year.
Covid-19 impacts on
finances
Covid-19 continues to have a significant effect on our
operations and costs, and casts a shadow over our
ability to predict future cargo trends.
We have adapted our financial strategy to address these impacts.
Temporary surcharges for long-stay containers, introduced in
January to discourage inefficient cargo flows and relieve yard
congestion, helped cover some additional costs from the congestion.
We took advantage of the low interest rates currently on offer,

and issued a $100 million five year wholesale bond at a coupon
rate of 1.02%.
Our r
ev
enue diversification strategy has also paid off, with strong
performances from our Subsidiary and Associate Companies
contributing significantly to Group profit in 2021. Earnings from

them increased.
Subsidiary and Associate
Company earnings of
Group Net Profit After Tax
Parent revenue
increased
8.9%
to $323.5 million
$18.6million
a 46.0% increase
60
Port of Tauranga Limited – Integrated Annual Report 2021

15.0 cents

Dividend of
Earnings per share
13.5 cents
per share
61

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 a Director of Auckland
International Airport Limited, and Meridian Energy
Limited. She is Vice President of the Institute of
Directors, and a Member of the Advisory Panel to
External Reporting Board. Julia chairs the Audit
Committee and joined the Board in August 2015.
K R ELLIS
BCA Economics (1st Class Honours),
BE Chemical (1st Class Honours)
Independent Director
Board of
Directors
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 and Rangatira Limited. He
has a strong background in marketing, international
business and supply chain logistics. David joined the
Board in July 2005.
Alastair Lawrence is a very experienced corporate
advisor, specialising in mergers and acquisitions, and
strategy development. He brings rigorous evaluation
skills and strong business acumen to the Board. 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.
D A PILKINGTON
BSc, BE, GradDip Dairy Science &
Technology, CFInstD, Chair
Independent Director
Kim Ellis is Chair of Green Cross Health, and NZ Social
Infrastructure Fund 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.
J C HOARE
BCom, FCA, CMInstD
Independent Director
A R LAWRENCE
BCA
Independent Director
62
Port of Tauranga Limited – Integrated Annual Report 2021

Sir Robert McLeod joined the Board of Quayside Holdings
Limited in November 2016 and is Chair. Sir Robert is also Chair
of Quayside Securities Limited, Quayside Properties Limited,
NZX listed Sanford Group and Ngati Porou Holding Company
Limited, Director of AZSTA NZ Limited, MSJS NZ Limited,
Point 76 Limited, Point Guard Limited, Point Seventy Limited
and VCFA NZ Limited. Sir Robert has been a past Board
Member at ANZ National Bank, Tainui Group Holdings, Sky City
Entertainment Group and Telecom. Sir Robert 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. In 2019
Sir Robert was appointed Knight Companion of the NZ Order
of Merit. He joined the Board in October 2017.
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.
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.
A M ANDREW
BE Chemical & Materials (1st Class Honours), MBA
(Distinction), FEngNZ, CMInstD
Independent Director
SIR R A MCLEOD
LLB, BCom, FCA, CFInstD
D W LEEDER
63

Simon was appointed Chief Financial Officer of Port
of Tauranga Limited in 2020. He has been with the
Company since 2003 and was previously IT/Finance
Manager. He is a chartered accountant and has a First
Class Honours Degree in a Bachelor of Management
Studies. Prior to joining Port of Tauranga, Simon was
Manager – Internal Audit for PricewaterhouseCoopers
in Singapore. He also held positions at Ernst & Young in
Singapore and Auckland.
SIMON KEBBELL
Chief Financial Officer & Company Secretary
LEONARD SAMPSON
Chief Executive
Leonard became Chief Executive of Port of Tauranga
in July 2021 following the retirement of Mark Cairns.
Leonard was appointed as the Port’s Chief Operating
Officer in September 2019, and before that was
Commercial Manager. He joined the Company in 2013
from the role of General Manager – Sales at KiwiRail.
He also held senior roles at Carter Holt Harvey
and Mainfreight.
DAN KNEEBONE
Property & Infrastructure Manager
Dan has overall responsibility for both the property
portfolio and engineering interests of the Port. Dan
joined the Port of Tauranga Senior Management Team
in January 2013. He was previously National Property
and Development Manager for Bunnings Limited and
held senior roles at Trans Tasman Properties Limited,
Fletcher Property Limited and Simes Limited.
MELANIE DYER
Corporate Services Manager
Melanie joined Port of Tauranga Limited in
August 2020 from Trustpower Limited, where
she was General Manager, People and Culture. Prior
to joining Trustpower in 2014, Melanie spent 11 years
at Hydro Tasmania. Melanie has a Master’s Degree in
organisational development and leadership studies.
Senior
Management
Team
64
Port of Tauranga Limited – Integrated Annual Report 2021

PAT KIRK
Group Health & Safety Manager
Pat joined the Company in 2013. He was previously
General Manager Health and Safety at Carter Holt
Harvey and has three decades of strategic and applied
industry health and safety experience across a wide
range of sectors. Pat is Chair of the Port Industry
Health & Safety Committee and a member of various
national health and safety organisations, including the
WorkSafe/Maritime NZ Port Sector Health and Safety
Strategy Working Group, and the Business Leaders’
Health & Safety Forum. Pat has a Master of Business
Studies (1st Class Honours).
BLAIR HAMILL
Commercial Manager
Blair oversees port operations, marketing
and new business opportunities. He joined the
Company in July 2020 after 20 years at Zespri
International, the world’s largest kiwifruit marketer.
Blair held a variety of senior roles at Zespri, including
Global Commercial Manager and, most recently,
Chief Global Supply Officer. Blair is a former
chartered accountant.
ROCHELLE LOCKLEY
Communications Manager
Rochelle joined the Company’s Senior Management
Team in September 2020. Rochelle, a former
journalist, held senior communications roles in tourism
and telecommunications in New Zealand, the United
Kingdom and United States. She then established
a communications consultancy in 2005.
65

Consolidated
Financial Statements
CONTENTS
Directors’ Responsibility Statement
67
Independent Auditor's Report 68
Consolidated Income Statement
71
Consolidated Statement of Comprehensive Income 72
Consolidated Statement of Changes in Equity
73
Consolidated Statement of Financial Position 74
Consolidated Statement of Cash Flows 75
Reconciliation of Profit for the Period to Cash Flows From Operating Activities
76
Notes to the Consolidated Financial Statements 77
C
orporate Governance Statement 112
Financial and Op
erational Five Year Summary 120
C
ompany Directory
12
2
FOR THE YEAR ENDED 30 JUNE 2021
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
66
Port of Tauranga Limited – Integrated Annual Report 2021

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 2021.
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 2021.
The financial statements were authorised for issue for and on behalf
of the Directors on 26 August 2021.
..........................................................
Chair
..........................................................
Director
..........................................................
Chair
..........................................................
Director
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Directors’ Responsibility Statement
FOR THE YEAR ENDED 30 JUNE 2021
67

Independent Auditor’s Report
The Auditor-General is the auditor of Port of Tauranga Limited and its subsidiaries (the Group). The Auditor-General has appointed me, Brent Manning, using
the staff and resources of KPMG to carry out the audit of the consolidated financial statements of the Group on his behalf.
OPINION
We have audited the consolidated financial statements of the Group on pages 71 to 111, that comprise the consolidated statement of financial position
as at 30 June 2021, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of
cash flows for the year then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 30 June
2021, and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with New Zealand equivalents to
International Financial Reporting Standards and International Financial Reporting Standards.
BASIS FOR OUR OPINION
We conducted our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the Professional and Ethical Standards and
the International Standards on Auditing (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report. We
are independent of the Group in accordance with the Auditor-General’s Auditing Standards, which incorporate Professional and Ethical Standard 1:
International Code of Ethics for Assurance Practitioners issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our
other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
When carrying out the audit of the Group we followed the independence requirements of the Auditor-General, which incorporate the independence
requirements of the External Reporting Board.
Other than in our capacity as auditor we have no relationship with, or interests in, the Group.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements
in the current period. We summarise below those matters and our key audit procedures to address those matters in order that the shareholders as a
body may better understand the process by which we arrived at our audit opinion. Our procedures were undertaken in the context of and solely for
the purpose of our statutory audit opinion on the consolidated financial statements as a whole and we do not express discrete opinions on separate
elements of the consolidated financial statements.
The Key Audit MatterHow The Matter Was Addressed in Our Audit
Value of property, plant and equipment
Refer note 11 of the financial statements.
The Group has property, plant and equipment (“PP&E”) of $1,758 million.
The Group has a policy of valuing land, buildings, wharves, hardstanding and
harbour improvements (“Revalued PP&E”) at fair value. Full Independent
valuations are obtained at least every three years (by an independent
valuer) over these asset classes.
In the current year, the fair value of land was updated based on an index
of movements in underlying land values. Buildings were assessed to not
have materially moved in value and no adjustment was made. Wharves
and hardstandings and harbour Improvements were revalued by an
independent valuer.
The Revalued PP&E is considered a key audit matter due to the judgement
involved in the assessment of the fair value and the material value of PP&E
on the balance sheet.
Our procedures focussed on the appropriateness of the Group’s
assessment as to whether the carrying values of Revalued PP&E materially
represent their fair values, and if a revaluation of a class of asset was
required, that the revalued assets have been accurately reflected in the
financial statements.
–

F
or land and buildings we have:
–
Assessed the methodology applied by management to determine
the index of land values.
–

Re
viewed the valuation reports of a sample of properties
prepared by an independent valuer that inform the land index.
–
Ass
essed the competence, objectivity and independence of the
valuer used.
–

Corr
oborated the movements in the valuation reports with
industrial property market movements to assess the estimated
movements in the land indices.
–

Re
calculated management’s assessment of the movement in
building values for the year. This included corroborating market
capitalisation rates and recalculating the movement in rental
income in the year.
To the Shareholders of Port of Tauranga Limited
68
Port of Tauranga Limited – Integrated Annual Report 2021

The Key Audit MatterHow The Matter Was Addressed in Our Audit
Value of property, plant and equipment (continued)– For wharves, hardstandings and harbour improvements (including
these asset classes contained within the equity accounted
investment balance) we have:
– Assessed the competence, objectivity and independence of the
valuer used.
– Reviewed the valuation reports and assessed whether the valuation
approach was in accordance with professional valuation standards
and suitable for determining the fair value of identified assets.
– Compared the asset holdings in the fixed asset register to those
valued to ensure all relevant property was captured.
– Compared on a sample basis asset data used by the valuer to
physical asset records and prior valuation reports.
We assessed whether the increase in valuations across the different
asset classes were correctly accounted for within the Revaluation
Reserve and Statement of Comprehensive Income.
Wharves and hardstandings and harbour improvements within the
Group’s associates have historically been held at cost. In the current
year a revaluation was performed over these asset classes to align
the accounting policies across the Group. This resulted in changes to
the fair value of PP&E in associates and restated amounts recorded in
previously issued financial statements. We assessed the disclosure of
the restatements against the requirements of IAS 8 Accounting Policies,
Changes in Accounting Estimates and Errors.
OTHER INFORMATION
The Directors are responsible on behalf of the Group for the other information. The other information comprises the information included on pages 1 to 67
and 112 to 122, but does not include the consolidated financial statements and our Auditor’s Report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of audit opinion or assurance
conclusion thereon.
The Annual Report is expected to be made available to us after the date of this Independent Auditor’s Report. Our responsibility is to read the Annual Report
when it becomes available and consider whether the other information it contains is materially inconsistent with the consolidated financial statements, or our
knowledge obtained in the audit, or otherwise appear misstated. If so, we are required to report such matters to the Directors.
DIRECTORS’ RESPONSIBILITIES FOR THE CONSOLIDATED FINANCIAL STATEMENTS
The Directors are responsible on behalf of the Group for the preparation and fair presentation of the consolidated financial statements in accordance
with New Zealand equivalents to International Financial Reporting Standards and International Financial Reporting Standards, and for such internal
control as the Directors determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible on behalf of the Group for assessing the Group’s ability to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either
intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
The Directors’ responsibilities arise from the Financial Markets Conduct Act 2013.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an Auditor’s Report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Auditor-General’s Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of shareholders taken on the basis of these
consolidated financial statements.
69

As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise professional judgement and maintain professional
scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
management.
• Conclude on the appropriateness of the use of the going concern basis of accounting by the Directors and, based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern.
If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor’s Report to the related disclosures in the consolidated
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our Auditor’s Report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an
opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we identify during our audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate
with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most significance in the audit of the consolidated financial
statements of the current period and are therefore the key audit matters. We describe these matters in our Auditor’s Report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Our responsibilities arise from the Public Audit Act 2001.
Brent Manning
KPMG
On behalf of the Auditor-General
Wellington, New Zealand
26 August 2021
Independent Auditor’s Report (continued)
70
Port of Tauranga Limited – Integrated Annual Report 2021

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Consolidated Income Statement
FOR THE YEAR ENDED 30 JUNE 2021
Note
2021
NZ$000
2020
Restated*
NZ$000
Total operating revenue 5338,281301,985
Contracted services for port operations(69,143)(61,363)
Employee benefit expenses6(4 3 , 520)(4 0,110)
Direct fuel and power expenses(11,545)(10,195)
Maintenance of property, plant and equipment(15,633)(11,543)
Other expenses(21,306)(16,547)
Operating expenses(161,147)(139,758)
Results from operating activities17 7,13 4162,227
Depreciation and amortisation 11, 12, 13(33,998)(2 9 ,74 6)
Impairment of property, plant and equipment(12)0
Impairment of property, plant and equipment on revaluation(2,326)0
Reversal of previous revaluation deficit0175
(36,336)(29,571)
Operating profit before finance costs, share of profit from Equity Accounted Investees and taxation140,798132,656
Finance income8164310
Finance expenses8(16,736)(18,840)
Net finance costs8(16,572)(18,530)
Share of profit from Equity Accounted Investees15(c)13,5249,957
Impairment of investment in Equity Accounted Investees15(b)0(6,986)
Loss on disposal of Equity Accounted Investees4(741)0
12 ,7832,971
Profit before income tax137,0 0 9117,0 97
Income tax expense9(34,634)(28,418)
Profit for the period 102,37588,679
*Refer to note 15(c).
Basic earnings per share (cents)1815.213.2
Diluted earnings per share (cents)1815.013.0
These statements are to be read in conjunction with the notes on pages 77 to 111.
71

PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Consolidated Statement of Comprehensive Income
FOR THE YEAR ENDED 30 JUNE 2021
2021
NZ$000
2020
Restated*
NZ$000
Profit for the period102,37588,679
Other comprehensive income
Items that may be reclassified to profit or loss:
Cash flow hedge – changes in fair value**6,618(7,555)
Cash flow hedge – reclassified to profit or loss**3,9032,341
Share of net change in cash flow hedge reserves of Equity Accounted Investees496(186)
Items that will never be reclassified to profit or loss:
Asset revaluation, net of tax**157, 8 4236,876
Share of net change in revaluation reserve of Equity Accounted Investees12,090216
Total other comprehensive income180,94931,692
Total comprehensive income283,324120,371
*Refer to note 15(c).
**Net of tax effect as disclosed in notes 9 and 10.
These statements are to be read in conjunction with the notes on pages 77 to 111.
72
Port of Tauranga Limited – Integrated Annual Report 2021

Note
Share
Capital
NZ$000
Share Based
Payment
Reserve
NZ$000
Hedging
Reserve
NZ$000
Revaluation
Reserve
NZ$000
Retained
Earnings
NZ$000
Total
Equity
NZ$000
Balance at 30 June 2019, as previously69,7574,085(16,975)1,013,13195,8871,165,885
Adjustments00032,952032,952
Restated* balance at 1 July 201969,7574,085(16,975)1,046,08395,8871,198,837
Profit for the period000088,67988,679
Other comprehensive income00(5,400)3 7,0 9 2031,692
Total comprehensive income00(5,400)37,0 9288,679120,371
Decrease in share capital(705)0000(705)
Dividends paid during the period170000(124,486)(124,486)
Equity settled share based payment accrual 1701,1670001,167
Shares issued upon vesting of Management Long
Term Incentive Plan
764(739)00(25)0
Total transactions with owners in their
capacity as owners
5942800(124,511)(124,024)
Restated* balance at 30 June 202069,8164,513(22 ,375)1,083,17560,0551,195,184
Profit for the period0000102,375102,375
Other comprehensive income0011,017169,9320180,949
Total comprehensive income0011,017169,932102,375283,324
Increase in share capital7350000735
Dividends paid during the period170000(84,353)(84,353)
Equity settled share based payment accrual1702,0780002,078
Shares, previously subject to call option, issued3,954(3,954)0000
Shares issued upon vesting of Management Long
Term Incentive Plan
415(225)00(190)0
Total transactions with owners in their
capacity as owners
5,104(2 ,101)00(84,543)(81,540)
Balance at 30 June 202174 , 9 2 02,412(11,358)1,253,10777,8871,396,968
*Refer to note 15(c).
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 30 JUNE 2021
These statements are to be read in conjunction with the notes on pages 77 to 111.
73

Note
2021
NZ$000
2020
Restated*
NZ$000
1 July
2019
Restated*
NZ$000
Assets
Property, plant and equipment111,758,1091,584,8651,531,211
Right-of-use assets1240,57725,0110
Intangible assets1324,20018,97919,028
Investments in Equity Accounted Investees15167,650158,588165,683
Receivables and prepayments1616,502012
Derivative financial instruments217700
Total non-current assets 2,007,1151 ,787, 4 4 31,715,934
Cash and cash equivalents7,8868,5653,903
Receivables and prepayments1665,26051,39960,610
Inventories1,0091,3831,366
Total current assets74,15561,34765,879
Total assets2,081,2701,848,7901,781,813
Equity17
Share capital74,92069,81669,757
Share based payment reserve2,4124,5134,085
Hedging reserve(11,358)(22,375)(16,975)
Revaluation reserve1,253,1071,083,1751,046,083
Retained earnings77,88760,05595,887
Total equity1,396,9681,195,1841,198,837
Liabilities
Loans and borrowings19215,000229,458124,213
Lease liabilities1241,04124,8100
Derivative financial instruments2113,76329,35920,895
Employee benefits62,2443,1571,783
Deferred tax liabilities1085,62765,34966,389
Contingent consideration42,92000
Total non-current liabilities360,595352,133213,280
Loans and borrowings19270,000259,000322,000
Lease liabilities128375920
Derivative financial instruments211,15101,138
Trade and other payables2237,72232,06633,688
Revenue received in advance16293260
Employee benefits63,3897242,178
Income tax payable10,0128,99810,432
Contingent consideration443400
Total current liabilities323,707301,473369,696
Total liabilities684,302653,606582,976
Total equity and liabilities2,081,2701,848,7901,781,813
Net tangible assets per share (dollars per share)2.041.751.76
*Refer to note 15(c).
For and on behalf of the Board of Directors who authorised these financial statements for issue on 26 August 2021.
................................................. ....................................................
Chair Director
For and on behalf of the Board of Directors who authorised these financial statements for issue on 26 August 2021.
....................................................
Director
For and on behalf of the Board of Directors who authorised these financial statements for issue on 26 August 2021.
.................................................
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Consolidated Statement of Financial Position
AS AT 30 JUNE 2021
These statements are to be read in conjunction with the notes on pages 77 to 111.
74
Port of Tauranga Limited – Integrated Annual Report 2021

Note
2021
NZ$000
2020
NZ$000
Cash flows from operating activities
Receipts from customers333,135321,275
Interest received165273
Payments to suppliers and employees(179,521)(151,007)
Taxes paid(36,576)(35,293)
Interest paid(17, 52 1)(18,111)
Net cash inflow from operating activities99,682117,1 3 7
Cash flows from investing activities
Proceeds from sale of property, plant and equipment1068
Finance lease payments received, including interest1313
Repayment of advances from Equity Accounted Investees6800
Dividends from Equity Accounted Investees159,63610,096
Purchase of property, plant and equipment(22,267)(38, 239)
Purchase of intangible assets(937)(587)
Interest capitalised on property, plant and equipment(89)(4 51)
Cash acquired as part of business combinations47940
Total net cash used in investing activities(12,160)(29,100)
Cash flows from financing activities
Proceeds from borrowings61,020130,265
Dividends paid17(84,353)(124,486)
Repurchase of shares0(716)
Repayment of borrowings(64,000)(88,004)
Repayment of lease liabilities(868)(4 3 4)
Net cash used in financing activities(88,201)(83,375)
Net increase/(decrease) in cash held(679)4,662
Add opening cash brought forward8,5653,903
Ending cash and cash equivalents7, 8 8 68,565
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Consolidated Statement of Cash Flows
FOR THE YEAR ENDED 30 JUNE 2021
These statements are to be read in conjunction with the notes on pages 77 to 111.
75

Note
2021
NZ$000
2020
Restated*
NZ$000
Profit for the period102,37588,679
Items classified as investing /financing activities:
Finance lease interest revenue8(1)(2)
(Gain)/loss on sale of property, plant and equipment(10)68
(11)66
Add/(less) non-cash items and non-operating items:
Depreciation 11, 1232,57629,110
Amortisation expense131,422636
Impairment of property, plant and equipment11120
Impairment of property, plant and equipment on revaluation2,3260
Reversal of previous revaluation deficit 0(175)
Decrease in deferred taxation expense10(2 ,973)(5,441)
Ineffective portion of change in fair value of cash flow hedge203(1)
Amortisation of interest rate collar premium208686
Share of net profit after tax retained by Equity Accounted Investees15(c)(13,524)(9,957)
Impairment of investment in Equity Accounted Investees15(b)06,986
Loss on disposal of Equity Accounted Investees47410
Change in the fair value of contingent consideration1030
Increase in equity settled share based payment accrual2,0781,167
22,85022,411
Add/(less) movements in working capital:
Change in trade receivables and prepayments(31,584)9,211
Change in inventories374(17)
Change in income tax payable1,170(1,434)
Change in trade, other payables and revenue received in advance4,508(1,779)
(25,532)5,981
Net cash flows from operating activities99,682117,1 3 7
*Refer to note 15(c).
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Reconciliation of Profit for the Period to Cash Flows
From Operating Activities
FOR THE YEAR ENDED 30 JUNE 2021
These statements are to be read in conjunction with the notes on pages 77 to 111.
76
Port of Tauranga Limited – Integrated Annual Report 2021

1 COMPANY INFORMATION
Reporting Entity
Port of Tauranga Limited (referred to as the Parent Company), is a port company. The Parent Company carries out business through the
provision of wharf facilities, land and buildings, for the storage and transit of import and export cargo, berthage, cranes, tugs and pilot services
for customers.
Port of Tauranga Limited holds investments in other New Zealand ports and logistic companies.
The Parent Company is a company domiciled in New Zealand, and registered under the Companies Act 1993 and listed on the New Zealand
Stock Exchange (NZX). The Parent Company is a Financial Markets Conduct (FMC) reporting entity for the purposes of the Financial Reporting
Act 2013 and Financial Markets Conduct Act 2013. The financial statements comply with these Acts.
The financial statements of the Group for the year ended 30 June 2021 comprise the Parent Company and its Subsidiaries (together referred
to as the Group) and the Group’s interest in Equity Accounted Investees.
In accordance with the Financial Markets Conduct Act 2013, where a reporting entity prepares consolidated financial statements, parent
company disclosures are not required.
2 BASIS OF PREPARATION
Statement of Compliance and Basis of Preparation
These financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP). These
financial statements comply with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS), and other applicable
Financial Reporting Standards, as appropriate for Tier 1 for-profit entities. They also comply with International Financial Reporting Standards.
The financial statements are prepared on the historical cost basis except for the following assets and liabilities which are stated at their fair
value: derivative financial instruments, land, buildings, harbour improvements, and wharves and hardstanding.
These financial statements are presented in New Zealand Dollars (NZ$), which is the Group’s functional currency. All financial information
presented in New Zealand Dollars has been rounded to the nearest thousand.
Significant accounting policies that are relevant to an understanding of the financial statements are provided throughout the notes to the
financial statements.
Certain comparative period information has been recognised and restated. Refer to note 15(c) for further details.
Accounting Estimates and Judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application
of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in
which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have
a significant effect on the amount recognised in the financial statements, are detailed below:
•

v
aluation of land, buildings, harbour improvements, and wharves and hardstanding (refer to note 11);
•
v
aluation of derivative financial instruments (refer to note 20);
•
impairment ass
essment of intangible assets (refer to note 13);
•
impairment assessment of investments in Equity Accounted Investees (refer to note 15); and
• valuation of share rights granted (refer to note 24).
Fair Value Hierarchy
Assets and liabilities measured at fair value are classified according to the following levels:
•
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
•

L
evel 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (prices) or indirectly
(derived from prices).
•

L
evel 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Financial Instruments
Financial Assets – Classification and Subsequent Measurement
On initial recognition, a financial asset is classified as measured at: amortised cost; Fair Value Through Other Comprehensive Income (FVOCI) –
debt investment; FVOCI – equity investment; or Fair Value Through Profit and Loss (FVTPL).
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial
assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change
in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
•

it is held within a busine
ss model whose objective is to hold assets to collect contractual cash flows; and
•

its c
ontractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021
77

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
• it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
•

its c
ontractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. This includes all
derivative financial assets.
Financial Liabilities – Classification, Subsequent Measurement and Gains and Losses
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-
for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains
and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised
cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain
or loss on derecognition is also recognised in profit or loss.
New and Amended Accounting Standards Adopted
The following new and amended standards have been adopted and applied in preparing these financial statements:
•

NZ IA
S 1 Presentation of Financial Statements
The Group has early adopted amendments to NZ IAS 1 Presentation of Financial Statements for the year ended 30 June 2021.
The amendments clarify the classification of liabilities as current or non-current. The Group has applied this classification of current
and non-current liabilities in determining the classification of loan facilities within these financial statements. The early adoption
of the amendment to NZ IAS 1 had no impact on the classification of the Group’s debt facilities.
•

S
oftware-as-a-Service Arrangements
The IFRS Interpretations Committee recently published two agenda decisions clarifying how arrangements in respect of a specific
part of cloud technology, Software-as-a-Service, should be accounted for. The clarification has not had a material impact on the
financial statements.
There are no new or amended accounting standards and interpretations that are issued but not yet adopted that are expected to have
a material impact on the Group.
Covid-19
As an essential service provider, the Group continued operations during the Covid-19 response. During the year to 30 June 2021,
the Group’s results from operating activities were not adversely impacted by the resultant shut-downs and other social and economic
disruptions. In addition, there has not been a material impact on key assumptions used in valuing the Group’s assets and therefore
no Covid-19 related impairments have been recorded.
3 SEGMENTAL REPORTING
Operating Segments
The Group determines and presents operating segments based on the information that is internally provided to the Chief Executive, who is the
Group’s Chief Operating Decision Maker (CODM).
The Group operates in three primary reportable segments, being:
•
Port Operations: This consists of providing and managing port services, and cargo handling facilities through the Port of Tauranga,
MetroPort and Timaru Container Terminal. The Port’s terminal and bulk operations have been aggregated together within the Port
Operations segment, due to the similarities in economic characteristics, customers, nature of products and processes, and risks.
•
Property Services: This consists of managing and maintaining the Port’s property assets.
• Marshalling Services: This consists of the contracted terminal operations, stevedoring, marshalling and scaling activities of Quality
Marshalling (Mount Maunganui) Limited (Quality Marshalling).
The three primary business segments are managed separately as they provide different services to customers and have their own operational
and marketing requirements.
The remaining activities of the Group are not allocated to individual business segments. Due to the significant shared cost base of the Port,
operating costs, measures of profitability, assets and liabilities are aggregated and are not reported to the CODM at a segmental level, but rather
at a port level, as all business decisions are made at a “whole port level”.
The Group operates in one geographical area, that being New Zealand. During the year the Group received revenue from two external
customers which individually comprised more than 10% of total revenue. Revenue from these two customers is included in Port Operations and
accounts for 30% and 12% (2020: 30% and 11%) of total revenue.
2 BASIS OF PREPARATION (CONTINUED)
78
Port of Tauranga Limited – Integrated Annual Report 2021
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021

The Group segment results are as follows:
2021

Port
Operations
Group
NZ$000
Property
Services
Group
NZ$000
Marshalling
Services
Group
NZ$000
Unallocated*
Group
NZ$000
Inter
Segment
Group
NZ$000
Group
NZ$000
Revenue (external)302,54530,9123,845003 3 7, 3 0 2
Inter segment revenue56417, 9 4 60(18,015)0
Total segment revenue302,55030,97621,7910(18,015)3 37, 3 0 2
Other income and expenditure:
Share of profit from Equity Accounted Investees00013,524013,524
Loss on disposal of Equity Accounted Investees000( 741)0( 741)
Interest income000199(35)164
Other income0001,296(317)979
Interest expense000(16,771)35(16,736)
Depreciation and amortisation expense00(1,038)(32,960)0(33,998)
Other unallocated expenditure00(15,883)(165,934)18,332(163,485)
Income tax expense00(1,370)(33, 264)0(34,634)
Total other income and expenditure00(18,291)(234,651)18,015(234,927)
Total segment result302,55030,9763,500(234,651)0102,375
*Operating costs are not allocated to individual business segments within the Parent Company.
2020
Port
Operations
Group
NZ$000
Property
Services
Group
NZ$000
Marshalling
Services
Group
NZ$000
Unallocated*
Group
Restated**
NZ$000
Inter
Segment
Group
NZ$000
Group
Restated**
NZ$000
Revenue (external)266,29329,6284,96600300,887
Inter segment revenue06913,0040(13,073)0
Total segment revenue266,29329,69717,9700(13,073)300,887
Other income and expenditure:
Share of profit from Equity Accounted Investees0009,95709,957
Impairment of investment in Equity Accounted
Investees
000(6,986)0(6,986)
Interest income0003100310
Other income0001,27301,273
Interest expense000(18,840)0(18,840)
Depreciation and amortisation expense00(946)(28,800)0(2 9 ,74 6)
Other unallocated expenditure00(13,513)(139,318)13,073(139,778)
Income tax expense00(983)(2 7, 4 3 5)0(28,418)
Total other income and expenditure00(15,442)(209,839)13,073(212,208)
Total segment result266,29329,6972,528(209,839)088,679
*Operating costs are not allocated to individual business segments within the Parent Company.
**Refer to note 15(c).
3 SEGMENTAL REPORTING (CONTINUED)
79

4 ACQUISITION OF REMAINING SHAREHOLDING IN TIMARU CONTAINER TERMINAL LIMITED
On 30 October 2020 the Parent Company acquired Kotahi Logistics LP’s (Kotahi) 49.9% shareholding in Timaru Container Terminal Limited
(Timaru Container Terminal), bringing the Parent Company’s total shareholding to 100%. The Parent Company purchased the shareholding
in exchange for a volume based rebate and a contract extension fee.
Timaru Container Terminal fits into the Parent Company’s hub port strategy. It allows South Island exporters and importers to benefit from
the large number of international services that call at Tauranga, and to share the Parent Company’s container terminal expertise and world
class productivity.
In the eight months to 30 June 2021, Timaru Container Terminal contributed revenue of $11.331 million and profit of $1.539 million. If the
acquisition had occurred on 1 July 2020, Group revenue would have increased by $3.761 million and profit would have remained the same. In
determining these amounts, management has assumed that the fair value adjustments that arose on the date of acquisition would have been
the same if the acquisition date had occurred on 1 July 2020.
This transaction has been accounted for as a step acquisition in accordance with NZ IFRS 3 Business Combinations (NZ IFRS 3). The
acquisition method in NZ IFRS 3 has been applied to account for the step acquisition which has resulted in the carrying value of the Parent
Company’s 50.1% previously held equity interest in Timaru Container Terminal being derecognised and a gain or loss being recognised
accordingly. In addition, the fair value of the previously held interest is used as a component of total consideration when calculating goodwill.
The following table summarises the major classes of consideration transferred, assets acquired and liabilities assumed at the acquisition date:
2021
NZ$000
Consideration
Contingent consideration, net of tax3,268
Fair value of previously held 50.1% interest in Timaru Container Terminal6,671
Fair value of consideration9,939
Fair value of identifiable assets acquired and liabilities assumed
Property, plant and equipment (refer to note 11)7, 57 1
Right-of-use asset (refer to note 12)15,675
Intangible software assets (refer to note 13)34
Customer contracts (refer to note 13)2,667
Receivables and prepayments 2,018
Cash and cash equivalents794
Income tax156
Deferred tax liabilities (refer to note 10)(1,140)
Loans and borrowings (owing to the Parent Company) (3,239)
Trade and other payables (1,371)
Lease liabilities (refer to note 12)(16,156)
Total net identifiable assets 7,0 0 9
Total goodwill (refer to note 13)2,930
The following table represents the disposal of Timaru Container Terminal as an Equity Accounted Investee:
2021
NZ$000
Fair value of previously held 50.1% interest in Timaru Container Terminal 6,671
Carrying value of previously held 50.1% interest in Timaru Container Terminal (7,412)
Loss on disposal of Equity Accounted Investee (741)
Contingent
Consideration
Contingent consideration is made up of a volume based rebate and a contract extension fee. The volume based
rebate is based on forecast volumes. In addition to the rebate, a maximum of $2.700 million will be paid to Kotahi,
contingent on the extension of the Container Volume Commitment Agreement which expires on 31 July 2024.
The value of the contract extension fee recognised as contingent consideration has been probability weighted with
probabilities determined by management.
GoodwillGoodwill recognised as a result of this acquisition is largely attributable to the benefits that will be gained by
leveraging the expertise and relationships of the workforce and management at the Parent Company in further
optimising the operations of Timaru Container Terminal.
80
Port of Tauranga Limited – Integrated Annual Report 2021
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021

5 OPERATING REVENUE
2021
NZ$000
2020
NZ$000
Revenue from contracts with customers
Container terminal revenue209,212178,394
Multi cargo revenue61,34852,584
Marine services revenue35,83040,281
306,390271,259
Other revenue
Rental revenue30,91229,628
Other income9791,098
Total operating revenue338,281301,985
PoliciesRevenue comprises the fair value of the consideration received or receivable for the sale of services in the ordinary
course of the Group’s activities. Standard credit terms are a month following invoice with any rebate variable
component calculated at the customers financial year end. Rebateable sales are eligible for sales volume rebates.
When the rebate is accrued, it is accrued as a current liability (rebate payable) based on contracted rates and
estimated volumes. For financial reporting purposes rebates are treated as a reduction in profit or loss. Revenue is
shown, net of GST, rebates and discounts. Revenue is recognised as follows:
•
Container terminal revenue: relates to the handling, processing, storage and rail of containers. Contracts are
entered into with shipping lines and cargo owners. The primary performance obligations identified include the
load and discharge of containers (which include the services provided to support the handling of containers).
Container terminal revenue is recognised over time based on the number of containers exchanged (an output
method). This method is considered appropriate as it allows revenue to be recognised based on the Group’s
effort to satisfy the performance obligation. The transaction price is determined by the contract and adjusted
by variable consideration (rebates). Rebates are based on container volume and the Group accounts for the
variable consideration using the expected value method. The expected value is the sum of probability weighted
amounts in a range of possible consideration amounts. The Group estimates container volumes based on
market knowledge and historical data.
•
Multi cargo revenue: relates to the wharfage and storage of bulk goods. Contracts are entered into with cargo
owners. The stevedoring services are provided by a third party. Multi cargo revenue is recognised over time, from
the point that cargo transferred from vessel to land (or vice versa), being an output method. The transaction
price for multi cargo services is determined by the contract.
•
Marine services revenue: relates directly to the visit of a vessel to the port and includes fees for pilotage, towage
and mooring. Contracts are entered into with vessel operators. The performance obligations identified include
vessel arrival, departure and berthage. Revenue is recognised over time, based on time elapsed (berthage),
being an input method. The transaction price for marine services is determined by the contract.
•
Rental revenue: from property leased under operating leases is recognised in the income statement on a
straight line basis over the term of the lease. Lease incentives provided are recognised as an integral part of the
total lease income, over the term of the lease.
•

O
ther income: is recognised when the right to receive payment is established.
81

6 EMPLOYEE BENEFITS
Employee Benefit Expenses
2021
NZ$000
2020
NZ$000
Wages and salaries41,42238,096
ACC levy271291
KiwiSaver contribution1,5231,436
Medical subsidy304287
Total employee benefit expenses43,52040,110
Employee Benefit Provisions
Long
Service
Leave
NZ$000
Profit
Sharing and
Bonuses
NZ$000
Total
NZ$000
Balance at 30 June 20202,1121,7693,881
Additional provision2883,8884,176
Unused amounts reversed(176)0(176)
Utilised during the period(118)(2 ,130)(2 ,248)
Balance at 30 June 20212 ,1063,5275,633
Total current provisions1793,2103,389
Total non-current provisions1,9273172,244
Employee Benefits –
Long Service Leave
Underlying assumptions for provisions relate to the probabilities of employees reaching the required vesting
period to qualify for long service leave. Probability factors for reaching long service leave entitlements are
based on historic employee retention information.
Employee Benefits –
Profit Sharing and Bonuses
The Profit Sharing and Bonus Scheme rewards eligible employees based on a combination of Company
performance against budget and personal performance. The incentive is generally paid biannually.
7 AUDIT FEES
Included in other expenses are fees paid to the auditors:
2021
NZ$000
2020
NZ$000
Audit and review of financial statements294201
Data analytics review of GST and fixed assets 013
Total audit and other services fees294214
82
Port of Tauranga Limited – Integrated Annual Report 2021
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021

8 FINANCIAL INCOME AND EXPENSE
2021
NZ$000
2020
NZ$000
Interest on lease12
Interest income on bank deposits9668
Interest on advances to Equity Accounted Investees67205
Ineffective portion of changes in fair value of cash flow hedges035
Finance income164310
Interest expense on borrowings (14,979)(18, 209)
Less:
Interest capitalised to property, plant and equipment89451
(14,890)(17,75 8)
Interest expense on lease liabilities (refer to note 12)(1,757)(996)
Ineffective portion of changes in fair value of cash flow hedges(3)0
Amortisation of interest rate collar premium(86)(86)
Finance expenses(16,736)(18,840)
Total net finance costs(16,572)(18,530)
PoliciesFinance income comprises interest income on bank deposits, finance lease interest and gains on hedging
instruments that are recognised in the income statement. Interest income on financial assets carried at amortised
cost is calculated using the effective interest method. Finance lease interest is recognised over the term of the lease
using the net investment method, which reflects a constant periodic rate of return.
Finance expenses comprise interest expense on borrowings, finance lease interest expense, unwinding of the
discount of provisions and losses on hedging instruments that are recognised in the income statement. Except
for interest capitalised directly attributable to the purchase or construction of qualifying assets, all borrowing costs
are measured at amortised cost and recognised in the income statement, using the effective interest method.
Capitalised InterestThe average weighted interest rate for interest capitalised to property, plant and equipment, was 2.45% for the
current period (2020: 3.25%).
Total interest capitalised to property, plant and equipment, was $0.089 million for the current period (2020:
$0.451 million).
83

9 INCOME TAX
Components of Tax Expense
2021
NZ$000
2020
Restated*
NZ$000
Profit before income tax for the period137,0 0 9117,0 97
Income tax on the surplus for the period at 28.0 cents38,36332 ,787
Tax effect of amounts which are non-deductible/(taxable) in calculating taxable income:
Tax effect on change to depreciation rate for buildings0(3,327)
Impairment of investment in Equity Accounted Investees (refer to note 15)01,956
Share of Equity Accounted Investees after tax income, excluding Coda Group Limited Partnership(3,289)(3,060)
Loss on disposal of Equity Accounted Investees (refer to note 4)2070
Other(647)62
Total income tax expense34,63428,418
The income tax expense is represented by:
Current tax expense
Tax payable in respect of the current period36,97733,206
Adjustment for prior period630653
Total current tax expense37,6 0733,859
Deferred tax expense
Adjustment for prior period(478)(634)
Origination/reversal of temporary differences(2,495)(1,480)
Tax effect on change to depreciation rate for buildings (refer to note 10)0(3,327)
Total deferred tax expense (refer to note 10)(2 ,973)(5,441)
Total income tax expense34,63428,418
*Refer to note 15(c).
Income tax recognised in other comprehensive income:
2021
NZ$000
2020
NZ$000
Revaluation of property, plant and equipment18,4706,429
Cash flow hedges4,091(2,028)
Total income tax recognised in other comprehensive income (refer to note 10)22,5614,401
PoliciesIncome tax expense comprises current and deferred tax, calculated using the rate enacted or substantively
enacted at balance date and any adjustments to tax payable in respect to prior years. Income tax expense is
recognised in the income statement except to the extent that it relates to items recognised in other comprehensive
income or equity.
Imputation CreditsTotal imputation credits available for use in subsequent reporting periods are $37.803 million at 30 June 2021
(2020: $28.696 million).
84
Port of Tauranga Limited – Integrated Annual Report 2021
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021

10 DEFERRED TAXATION
AssetsLiabilitiesNet
2021
NZ$000
2020
NZ$000
2021
NZ$000
2020
NZ$000
2021
NZ$000
2020
NZ$000
Deferred tax (asset)/liability
Property, plant and equipment0093,22475,93993,22475,939
Intangible assets001,0605201,060520
Finance lease receivables000404
Derivatives(4,182)(8,273)00(4,182)(8,273)
Provisions and accruals(3,489)(2,416)00(3,489)(2,416)
Equity Accounted Investees(638)(425)00(638)(425)
Contingent consideration(348)000(348)0
Total (8,657)(11,114)94,28476,46385,62765,349
Recognised in the
Statement of Financial Position
on Acquisition of Subsidiary
Recognised in the
Income Statement
Recognised in
Other Comprehensive Income
2021
NZ$000
2020
NZ$000
2021
NZ$000
2020
NZ$000
2021
NZ$000
2020
NZ$000
Deferred tax (asset)/liability
Property, plant and equipment3900(1,575)(4,556)18,4706,429
Intangible assets7570(217)(35)00
Finance lease receivables00(4)(3)00
Derivatives00014,091(2,028)
Provisions and accruals(7)0(1,066)(423)00
Equity Accounted Investees00(213)(425)00
Contingent consideration(450)0102000
Total6900(2,973)(5,441)22,5614,401
PoliciesDeferred tax is recognised on temporary differences that arise between the carrying amount of assets and liabilities
for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for the initial recognition of goodwill.
Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse.
A deferred tax asset is recognised only to the extent it is probable it will be utilised.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset and when the
deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either
the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.
The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the
Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. For this
purpose, the carrying amount of buildings classified as property, plant and equipment carried at cost is presumed to
be recovered through use.
Unrecognised Tax
Losses or Temporary
Differences
There are no material unrecognised income tax losses or temporary differences carried forward. There are no
material unrecognised temporary differences associated with the Group’s investments in Subsidiaries or Equity
Accounted Investees.
85

11 PROPERTY, PLANT AND EQUIPMENT
Freehold
Land
NZ$000
Freehold
Buildings
NZ$000
Wharves and
Hardstanding
NZ$000
Harbour
Improvements
NZ$000
Plant and
Equipment
NZ$000
Work in
Progress
NZ$000
Total
NZ$000
Gross carrying amount:
Balance at 1 July 2019803,204114,928318,812174 , 4 6 7218,96414,6561,645,031
Additions05,3236,9401,28429,432(4 , 3 8 3)38,596
Disposals0(145)00(1,139)0(1, 284)
Revaluation22,35212,652000035,004
Transfers between asset
classes
04,687(4 ,6 87)0000
Balance at 30 June 2020825,556137, 4 4 5321,065175,7512 47, 2 5710,2731,717,347
Balance at 1 July 2020825,5561 3 7, 4 4 5321,065175,751247, 25710,2731,717,347
Additions1,66010,83610,5729562,978(4 ,029)22,973
Assets acquired on
acquisition of Timaru
Container Terminal Limited
036110607,1 0 407, 57 1
Revaluation103,838028,6882,25500134,781
Balance at 30 June 2021931,054148,642360,431178,962257,3396,2441,882,672
Accumulated depreciation
and impairment:
Balance at 1 July 20190(4 , 205)(11,147)(1,291)(97,17 7 )0(113,820)
Depreciation expense0(4 , 373)(11,675)(1,518)(10,719)0(28,285)
Disposals0145001,00301,148
Transfers between asset
classes
0(96)960000
Revaluation08,47500008,475
Balance at 30 June 20200(54)(22 ,726)(2 ,809)(106,893)0(132,482)
Balance at 1 July 20200(54)(22 ,726)(2 ,809)(106,893)0(132,482)
Depreciation expense0(5,643)(12,086)(1,590)(11,955)0(3 1 , 2 74)
Impairment0000(12)0(12)
Revaluation0034,8064,3990039,205
Balance at 30 June 20210(5,697)(6)0(118,860)0(124,563)
Carrying amounts:
Total net book value as
at 30 June 2020
825,556137, 3 91298,339172,942140,36410,2731,584,865
Total net book value as
at 30 June 2021
931,054142,945360,425178,962138,4796,2441,758,109
PoliciesProperty, plant and equipment is initially measured at cost, and subsequently stated at either fair value or cost, less
depreciation and any impairment losses.
Subsequent expenditure that increases the economic benefits derived from the asset is capitalised.
Land, buildings, harbour improvements, and wharves and hardstanding are measured at fair value, based upon periodic
valuations by external independent valuers. The Group undertakes a three yearly revaluation cycle to ensure the carrying
value of these assets does not differ materially from their fair value. In the years between independent valuations, the
carrying value of land is adjusted annually based on a sample valuation provided by an independent valuer, as underlying
land values are considered the significant determinant of fair value changes. For the remaining asset classes, if during the
three year revaluation cycle there are indicators that the fair value of a particular asset class may differ materially from its
carrying value, an interim revaluation of that asset class is undertaken.
86
Port of Tauranga Limited – Integrated Annual Report 2021
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021

Policies (continued)Depreciation of property, plant and equipment, other than freehold land and capital dredging (included within
harbour improvements), is calculated on a straight line basis and expensed over their estimated useful lives.
Major useful lives are:
Freehold buildings 33 to 85 years
Maintenance dredging 3 years
Wharves 44 to 70 years
Basecourse50 years
Asphalt15 years
Gantry cranes10 to 40 years
Floating plant10 to 25 years
Other plant and equipment5 to 25 years
Electronic equipment3 to 5 years
Capital and maintenance dredging are held as harbour improvements. Capital dredging has an indefinite useful life
and is not depreciated as the channel is maintained via maintenance dredging to its original depth and contours.
Maintenance dredging is depreciated over three years.
Work in progress relates to self constructed assets or assets that are being acquired which are under construction at
balance date. Once the asset is fit for intended service, it is transferred to the appropriate asset class and depreciation
commences. Software developed undertaken as part of a project is transferred to intangibles on completion.
An item of property, plant and equipment is derecognised when it is sold or otherwise disposed of, or when its use is
expected to bring no future economic benefit. Upon disposal or derecognition, any revaluation reserve relating to the
particular asset being disposed or derecognised is transferred to retained earnings.
SecurityCertain items of property, plant and equipment have been pledged as security against certain loans and borrowings
of the Group (refer to note 19).
Occupation
of Foreshore
The Parent Company holds consent to occupy areas of the Coastal Marine Area to enable the management
and operation of port related commercial undertakings that it acquired under the Port Companies Act 1988. The
consented area includes a 10 metre radius around navigation aids and a strip from 30 to 60 metres wide along the
extent of the wharf areas at both Sulphur Point and Mount Maunganui.
Capital
Commitments
The estimated capital expenditure for property, plant and equipment contracted for at balance date but not
provided for is $29.437 million.
On 28 September 2020, the Parent Company formed a 50:50 joint venture named Ruakura Inland Port LP with
Tainui Group Holdings Limited.
The new joint venture will take an initial 50 year ground lease to establish an inland port in Ruakura, and plans to
start operations within two years.
The Parent Company has committed capital of $25.000 million to fund the development of the inland port and as at
30 June 2021 nothing has been provided for.
In addition, if the development costs exceed the initial $25.000 million capital commitment, construction
contingency funding of up to $2.500 million must be provided to the joint venture.
JudgementsFair Values
This fair value measurement has been categorised as a Level 3 fair value based on the inputs for the assets which are not
based on observable market data (unobservable inputs), (refer to note 2 for fair value measurement hierarchy).
Judgement is required to determine whether the fair value of land, buildings, wharves and hardstanding, and harbour
improvements assets have changed materially since the last revaluation. The determination of fair value at the
time of the revaluation requires estimates and assumptions based on market conditions at that time. Changes
to estimates, assumptions or market conditions subsequent to a revaluation will result in changes to the fair value
of property, plant and equipment.
Remaining useful lives and residual values are estimated based on Management’s judgement, previous experience and
guidance from registered valuers. Changes in those estimates affect the carrying value and the depreciation expense in
the income statement.
At the end of each reporting period, the Group makes an assessment whether the carrying amounts differ materially from
the fair value and whether a revaluation is required. The assessment considers movements in the capital goods price
indices and other market indicators since the previous valuations.
As at 30 June 2021, wharves and hardstanding, and harbour improvements, have been revalued, and the carrying value of
land has been adjusted based on a sample valuation.
11 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
87

Judgements
(continued)
Land Valuation
The sample valuation of land assets was carried out by Colliers International New Zealand Limited. The valuation
increased the carrying amount of land by $103.838 million.
For sample valuations, as performed at 30 June 2021, the Group selects three land titles which strongly reflect the
characteristics of the total land holding. Valuations are performed on these titles to determine an index movement
which is applied to the total carrying value of land. The work performed is less than that which would be undertaken
at the full revaluation cycle.
Land assets are valued using the direct sales comparison approach which analyses direct sales of comparable
properties on the basis of the sale price per square metre which are then adjusted to reflect stronger and weaker
fundamentals relative to the subject properties.
The significant assumptions applied in the valuation of these assets are:
20212020
Asset
Valuation
Method
Key Valuation
AssumptionsHectares
Range of
Significant
Assumptions
$
Weighted
Average
$
Range of
Significant
Assumptions
$
Weighted
Average
$
Direct sales
comparison
Tauranga (Sulphur Point) /
Mount Maunganui – wharf
and industrial land per
square metre
181.7404–1,044468360–930417
Auckland land – land
adjacent to MetroPort
Auckland per square metre
6.8842–936873720–80074 6
Rolleston land –
MetroPort Christchurch
per square metre
15.0124124110110
•
Waterfront Access Premium: A premium of approximately 25% has been applied to the main wharf land
areas reflecting the locational benefits this land asset gains from direct waterfront access.
• No Restriction of Title: Valuation is made on the assumption that having no legal title to the Tauranga harbour
foreshore will not detrimentally influence the value of land assets.
•

Highe
st and Best Use of Land: Subject to relevant local authority’s zoning regulations.
•
T
auranga and Mount Maunganui: The majority of land is zoned “Port Industry” under the Tauranga City
Plan and a small portion of land at both Sulphur Point and Mount Maunganui has “Industry” zoning.
•
A
uckland: The land is zoned “Heavy Industry Zone” under the Auckland Unitary Plan.
•
Rolleston: The land is zoned “Business 2A” under the Selwyn District Plan.
Building Valuations
The last valuation of buildings was carried out by Colliers International New Zealand Limited, at 30 June 2020.
The majority of assets are valued on a combined land and building basis using a Capitalised Income Model with either
contract income or market income. A small number of specialised assets, such as gatehouses and toilet blocks, are
valued on a Depreciated Replacement Cost basis due to their specialised nature and the lack of existing market.
The Capitalised Income Model uses either the contracted rental income or an assessed market rental income of
a property and then capitalises the valuation of the property using an appropriate yield. Contracted rental income
is used when the contracted income is receivable for a reasonable term from secured tenants. Market income is
used when the current contract rent varies from the assessed market rent due to over or under renting, vacant
space and a number of other factors.
The value of land is deducted from the overall property valuation to give rise to a building valuation.
At 30 June 2021, the Group assessed the movement in capitalisation rates and rental incomes over the preceding
12 months. It was determined that the movements were not large enough to warrant a revaluation of buildings.
The significant assumptions applied in the valuation of these building assets are:
20212020
Asset
Valuation
Method
Key Valuation
Assumptions
Range of
Significant
Assumptions
%
Weighted
Average
%
Range of
Significant
Assumptions
%
Weighted
Average
%
Capitalised
income model
Market capitalisation rate4.50–8.005.334.50–8.005.33
11 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
88
Port of Tauranga Limited – Integrated Annual Report 2021
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021

Judgements
(continued)
Wharves and Hardstanding, and Harbour Improvements
The valuation of wharves and hardstanding, and harbour improvements assets was carried out by WSP New
Zealand Limited. The valuation increased the carrying amount of wharves and hardstanding, and harbour
improvements by $70.148 million.
Wharves and hardstanding, and harbour improvements assets are classified as specialised assets and have
accordingly been valued on a Depreciated Replacement Cost basis.
The significant assumptions applied in the valuation of these assets are:
• Replacement Unit Costs of Construction Rates – Cost Rates Are Calculated Taking Into Account:
• The Parent Company’s historic cost data, including any recent competitively tendered construction works.
• Published cost information.
• The WSP New Zealand Limited construction cost database.
• Long run price trends.
• Historic costs adjusted for changes in price levels.
• An allowance is included for costs directly attributable to bringing assets into working condition,
management costs and the financing cost of capital held over construction period.
• Depreciation – the Calculated Remaining Lives of Assets Are Reviewed, Taking Into Account:
•

Ob
served and reported condition, performance and utilisation of the asset.
•
Exp
ected changes in technology.
•
Consider
ation of current use, age and operational demand.
•
Dis
cussions with the Parent Company’s operational officers.
•
WSP Consultants
’ in-house experience from other infrastructure valuations.
• Residual values.
The significant assumptions applied in the valuation of these wharves and hardstanding, and harbour improvements
assets are:
20212020
Asset
Valuation
Method
Key Valuation
Assumptions
Range of
Significant
Assumptions
$
Weighted
Average
$
Range of
Significant
Assumptions
$
Weighted
Average
$
Depreciated
replacement
cost basis
Wharf construction replacement
unit cost rates per square metre –
high performance wharves
107,000–
220,000
181,17092,000–
215,000
135,468
Earthworks construction
replacement unit cost rates per
square metre
7. 5 07. 5 099
Basecourse construction
replacement unit cost rates per
cubic metre
21–423420–4031
Asphalt construction replacement
unit cost rates per square metre
27–554423–5044
Capital dredging replacement unit
cost rates per square metre
4 –7 7*4 –7 5*
Depreciation methodStraight
line basis
Not
applicable
Straight line
basis
Not
applicable
Channel assets (capital dredging)
useful life
IndefiniteNot
applicable
IndefiniteNot
applicable
Pavement remaining useful lives
(years)
2–38 15 2–32 16
Wharves remaining useful lives
(years)
0–62 21 0–65 22
*

W
eighted average unit cost rates are not presented due to the complexity in measuring the types and locations of
removed quantities.
11 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
89

Judgements
(continued)
Sensitivities to Changes in Key Valuation Assumptions for Land, Buildings, Wharves and Hardstanding, and
Harbour Improvements
The following table shows the impact on the fair value due to a change in significant unobservable input:
Fair Value Measurement
Sensitivity to Significant
Increase
in Input
Decrease
in Input
Unobservable inputs within the direct sales comparison approach
for land
Rate per
square metre
The rate per square metre assessed from recently sold
properties of a similar nature
IncreaseDecrease
Unobservable inputs within the income capitalisation approach
for buildings
Market rentThe valuer’s assessment of the net market income
attributable to the property
IncreaseDecrease
Market
capitalisation
rate
The rate of return, determined through analysis of
comparable market related sales transactions, that is
applied to a market rent to assess a property’s value
DecreaseIncrease
Unobservable inputs within depreciated replacement cost analysis
for buildings, wharves and hardstanding, and harbour improvements
Unit costs of
construction
The cost of constructing various asset types based
on a variety of sources
IncreaseDecrease
Remaining
useful lives
The remaining useful life on an assetIncreaseDecrease
12 LEASES
The Group as the lessee has various non-cancellable leases predominantly for the lease of land and buildings. The leases have varying term and
renewal rights.
Information about leases for which the Group is a lessee is presented below:
2021
NZ$000
2020
NZ$000
Right-of-use assets
Opening balance25,011
24,273
Depreciation(1,302)
(825)
Additions to right-of-use assets1 ,174
298
Adjustments to existing right-of-use assets19
1,265
Right-of-use assets acquired on acquisition of Timaru Container Terminal Limited15,6750
Closing balance40,57725,011
Lease liabilities maturity analysis
Between zero to one year837592
Between one to five years3,0862,496
More than five years37, 9 5 522,314
Total lease liabilities41,87825,402
During the year a lease liabilities interest expense of $1.757 million (2020: $0.996 million) was recognised in the income statement.
11 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
90
Port of Tauranga Limited – Integrated Annual Report 2021
PORT OF TAURANGA LIMITED AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 30 JUNE 2021