2022 Full Year Results

ANNUAL REPORT
TE PŪRONGO Ā-TAU
2022

CONTENTS
ABOUT NAPIER PORT 5
SUMMARY 6
CHAIR AND CHIEF
EXECUTIVE'S REPORT 8
CHIEF FINANCIAL OFFICER’S
MANAGEMENT DISCUSSION
AND ANALYSIS 12
OUR TRADE PORTFOLIO 15
HOW NAPIER PORT CREATES VALUE 16
TE WHITI – OUR NEW WHARF
OPENS FOR BUSINESS 19
READY FOR GROWTH –
INFRASTRUCTURE INVESTMENT
CONTINUES AT PACE 24
SHIPPING AT NAPIER PORT 26
CUSTOMERS’ VOICE 27
NAPIER PORT LOGISTICS SERVICE 28
TECHNOLOGY SOLUTIONS 30
HEALTH AND SAFETY 32
OUR COVID RESPONSE 35
PEOPLE AND CULTURE 37
COMMUNITY RELATIONS 42
SPONSORSHIP 44
OUR SUSTAINABILITY EVOLVES 49
BOARD OF DIRECTORS 56
SENIOR MANAGEMENT 58
FINANCIAL STATEMENTS 61
CORPORATE GOVERNANCE
STATEMENT 62
OTHER DISCLOSURES 71
CONSOLIDATED INCOME STATEMENT 77
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME 78
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY 79
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION 80
CONSOLIDATED STATEMENT
OF CASH FLOWS 81
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS 83
INDEPENDENT AUDITOR'S REPORT 102
TRADE AND FINANCIAL
FIVE YEAR SUMMARY 107
DIRECTORY 108
1 | NAPIER PORT
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TE HERENGA WAKA O AHURIRI

2 | NAPIER PORT
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TE HERENGA WAKA O AHURIRI

TOGETHER WE BUILD
A THRIVING REGION
BY CONNECTING YOU
TO THE WORLD
3 | NAPIER PORT
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TE HERENGA WAKA O AHURIRI

4 | NAPIER PORT
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TE HERENGA WAKA O AHURIRI

FLEET OF 38
HEAVY CONTAINER
HANDLING MACHINES
1123 CONNECTION
POINTS FOR
REFRIGERATED CARGO
16 HECTARES
OF CONTAINER
TERMINAL SPACE
OVER 5 MILLION
TONNES OF CARGO
HANDLED ANNUALLY
SIX
MOBILE HARBOUR
CRANES
10 HECTARES OF
DEDICATED LOG STORAGE,
WORKING 24/7
TWO CONTAINER DEPOTS
AT THAMES STREET OFFERING FULL SERVICES
TO INTERNATIONAL SHIPPING LINES
12.3 HECTARES OF LAND
IN WHAKATŪ FOR FUTURE
DEVELOPMENT
INLAND FREIGHT HUB IN MANAWATŪ WITH A 1.9 HECTARE
CONTAINER YARD AND A WAREHOUSING FACILITY WITH
ROAD AND RAIL CONNECTIONS TO NAPIER PORT
50 HECTARES
OF ON-SITE
PORT LAND
ONE
MOBILE LOG
DEBARKER
36,600
SQUARE METRES
OF WAREHOUSING
SIX WHARVES
INCLUDING OUR NEW
350M WHARF, TE WHITI
WORKING FOR
HAWKE’S BAY FOR
OVER 150 YEARS
NEW ZEALAND’S
FOURTH LARGEST PORT
BY CONTAINER VOLUME
OVER 340
EMPLOYEES
THREE TUGS

ABOUT NAPIER PORT
Napier Port has been connecting Hawke’s Bay and its
surrounding regions with the people and markets of the
world for over 150 years. Located on the East Coast of
New Zealand, we are the gateway for the central and
lower North Island’s exports and operate a long-term
regional infrastructure asset that supports the regional
economy. We employ 341 people directly and our
operations indirectly support many thousands of jobs
across the region.
We plan, operate and maintain port land and shipping
channels, and we have the cargo-handling capacity,
facilities and infrastructure to get our customers’ cargo
efficiently across our wharves and en route to market.
Napier Port is on the main transit route for international
shipping services, is connected to inland freight hubs
and core national road and rail networks, and operates
24 hours a day, 364 days a year.
While our strategic location and cargo-handling capacity
make us a key connection in central New Zealand’s
supply chain, it’s our culture and service that are the
foundation to our success. We take pride in delivering
for our customers, building collaborative relationships,
supporting the local community and looking after our
marine environment.
Our future success is forged side by side with
the success of our customers and our community.
Collectively, we can drive growth that benefits
our region, our people and our environment.
5 | NAPIER PORT
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SUMMARY
$
114.5
MILLION REVENUE
–
4.6
%
$
100
MILLION
BONDS
ISSUE
EMISSIONS
INVENTORY
AUDITED
FOR THE
FIRST TIME
$
9.4
MILLION
FINAL DIVIDEND
–
4.7 CENTS
PER SHARE
857
ATTENDEES
ON HEALTH AND
SAFETY COURSES
–
17 6
%
203
CONTAINER
VESSEL CALLS
–
16.1
%
TE WHITI
(6 WHARF)
OFFICIALLY
OPENED FOR
BUSINESS
22 JULY 2022
310
CHARTER
VESSEL CALLS
–
9.6
%
6 | NAPIER PORT
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TE HERENGA WAKA O AHURIRI

5.39
MILLION
TONNES OF
CARGO HANDLED
–
8.1
%
$
40.1
MILLION
RESULT FROM OPERATING
ACTIVITIES
–
8.4
%
$
20.4
MILLION NET PROFIT
–
11.8
%
2.8
MILLION
TONNES OF
LOG EXPORTS
–
5.8
%
3.65
MILLION
TONNES OF BULK
CARGO HANDLED
–
7. 6
%
44
THOUSAND
TEU HANDLED
THROUGH PORT PACK
–
3.4
%
254
THOUSAND
TEU CONTAINERS
HANDLED
–
7. 9
%
54
SUSTAINABILITY
ACTIONS
UNDERWAY OR COMPLETED
7 | NAPIER PORT
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TE HERENGA WAKA O AHURIRI

CHAIR AND
CHIEF EXECUTIVE'S REPORT
We are pleased to present our Annual Report for the
2022 financial year.
Strategically it has been a highly successful year.
We have made significant progress on our goals to
continue to put in place the infrastructure and capabilities
that will underpin the success of Napier Port and the
economy of Hawke’s Bay and the central and lower
North Island of New Zealand.
The centrepiece of this achievement was the opening
of 6 Wharf – Te Whiti – a multi-generational asset for
Hawke’s Bay and the New Zealand supply chain, delivered
ahead of schedule and under budget. Te Whiti is an
asset for both Hawke’s Bay and New Zealand and is
well positioned to support the easing of congestion and
expand capacity across the North Island. Through opening
Te Whiti, we have delivered on the commitments we made
when we launched our initial public offer and NZX listing
in 2019. During 2022 we have also continued to deliver
on our commitments to safety, sustainability, and to
building more diversity and inclusion into our workforce.
TRADE VOLUMES
AND FINANCIAL RESULTS
From a trading perspective we handled 5.39 million tonnes
of cargo. This was despite a challenging year of disrupted
trading, environmental and operational conditions.
Labour constraints and pandemic-related absences
limited the productivity of our customers. These challenges
were exacerbated in the first half of the year by adverse
weather events impacting upon local production.
Global supply-chain disruptions have seen significant
diversions from shipping schedules and a reduction in
the number of vessels visiting Napier Port. Total ship visits
(container and charter) were down to 513 vessels,
a 12.3% reduction on the prior year’s 585 visits.
These factors together with intense cost pressures
across the supply chain have had flow on effects both
to Napier Port operations and our region’s cargo owners.
As a result, total containerised volumes of 254,000 TEU
decreased by 22,000 TEU, or 7.9%, from 276,000 TEU
in the prior year, and bulk cargo volumes fell 7.6% for the
year to 3.65 million tonnes, compared to the same period
a year ago.
Despite the reduction in container and bulk cargo volumes,
revenue for the 2022 financial year rose to $114.5 million,
a 4.6% improvement on the $109.5 million posted in the
prior financial year. This reflects our efforts to recover the
rising operating and infrastructure costs we face.
Reported net profit for the financial year was $20.4 million,
down from the $23.2 million recorded in the prior year,
with higher operating costs due to inflation, investment
in capability and higher financing and depreciation costs
offsetting the increase in revenue.
We have worked hard to balance the long-term interests
of the region and Napier Port carefully with a sharp focus
on efficiently managing our infrastructure to deliver the
value and solutions our region’s cargo owners need.
The successful commissioning of Te Whiti is the best
evidence of this in action.
8 | NAPIER PORT
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The team delivered the wharf ahead of schedule and
under the original construction budget of $173 million
to $190 million, an outstanding achievement in the history
of New Zealand infrastructure investment.
They have managed the impact the project had on our
port operations, kept the cargo flowing and delivered
an asset that will support the development of our region
for many generations to come. It also took place against
a backdrop of sharply rising prices both here and abroad
and global political tensions that are less than supportive
of business confidence.
Our focus on prudent debt management has enabled
us to finish the year, a period of significant infrastructure
investment, with a balance sheet that can continue
to support the growth of the company and our region.
We are looking ahead now with cautious optimism
to improved trading conditions in the new financial year
and the teams’ focus on ongoing prudent management
of debt and budgets.
SAFETY AT THE FOREFRONT
A highlight during the year has been director engagement
on port, as Covid segregation measures have reduced.
Participating in safety forums, reviewing operations and
new infrastructure, and engaging with teams on the
ground gives directors insight into the work our teams
do every day.
The Board has confidence in the management team’s
commitment to the health, safety and wellbeing of people
on our port. It is prioritised in business planning and
investment, but most importantly it is evident in their
actions, and those of the wider port team. Health and
safety is fundamental to our culture, and our people play
key roles as health and safety representatives, fatigue
mentors and in emergency management preparedness.
This ensures our approaches remain fit for purpose
and functional with our teams firmly invested in design,
implementation and monitoring activities every day.
Engineered controls are our primary mitigant in removing
and, where possible, eliminating critical risks within the
port environment. This approach requires commitment and
investment in good infrastructure and engineered design.
Real-life examples of this in action this year have been our
investment in new mooring technology, MoorMaster and
ShoreTension units, physical barrier protection to separate
people from machines, and our investment in mobile
harbour crane log grabs.
The health and safety foundational roadmap that began
in 2019 is now complete. Significant progress has been
made on critical risk control and assurance activities,
mitigating those incidents most likely to cause serious
harm; embedding a functional safety management system
for reporting; and working towards ISO 45001, aiming
for best practice in health and safety management.
We are now entering a new maturity phase, with a
continuing focus on critical risk controls management
combining with a health and wellbeing focus.
The port sector review by Maritime New Zealand and
WorkSafe concluded that Napier Port had no immediate
issues to remedy. While this is encouraging and reflects
the priority the team has put on safety, there is never room
for complacency, and we will always try harder to improve
safety for everyone working and visiting Napier Port.
CREATING VALUE
AND GROWTH OPPORTUNITIES
FOR CUSTOMERS
Te Whiti is an asset for both Hawke’s Bay and
New Zealand and is well positioned to support the
easing of congestion and expand port capacity across
the North Island. It can accommodate the larger vessels
calling and the increasingly larger exchanges of cargo
being transacted. Connections to the road and rail
network, and links to strategically located inland hubs,
means cargo can flow efficiently across, and in and out
of, the whole of the North Island via Napier Port.
With operational improvements underway and freeing up
additional storage capacity on port, Te Whiti expands the
capability of the whole North Island supply chain. Greater
berth availability and operational performance lends itself
to future growth in containers, bulk and cruise ship visits
for customers, shipping lines and Napier Port.
In addition to Te Whiti, we advanced projects that have
improved productivity for cargo owners and efficiency for
shipping lines. There is growing support for our site-to-
sea logistics capability, which coordinates road, rail and
warehousing services, providing customers in the
North Island with freight and cargo-handling options
via Napier Port.
Log debarking throughput is climbing as we optimise
this new operation, including the addition of a second
operational shift. In an environmental win for our region,
implementation of the debarker enabled us to end methyl
bromide fumigation of logs on port and further reduces
health and safety risk.
Another advancement in operational efficiency for our
customers and safety improvements delivered on port has
been the start of our log loading operational trials using
our mobile harbour cranes and customised log grabs.
VALUING CULTURE
AND DIVERSITY
Embedded in our Te Ao Māori strategy are ongoing
partnerships with local iwi and hapū on projects
benefitting the local community and environment, including
language and diversity education, Matariki celebrations,
plantings for biodiversity, and our flagship Marine Cultural
Health Programme.
We were delighted to be part of a number of wellbeing,
te reo and tikanga Māori initiatives during the year led by
the Napier Port’s Kāhui group. This includes the significant
role the Kāhui played in the official opening of our new
wharf and supporting the naming of 6 Wharf as Te Whiti.
We are grateful for the valuable tikanga the Kāhui
is bringing to Napier Port.
9 | NAPIER PORT
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We have been building on last year’s Equality, Diversity
and Inclusion Policy with a focus on culture development.
Central to this is fostering a sense of inclusiveness
and establishing the right culture settings so everyone
who works at Napier Port feels a sense of belonging.
Container terminal operators and team leaders are
taking a leading role. They have been heavily involved
in culture development workshops at local marae, and are
supporting initiatives to attract and retain more diversity
into this significant area of Napier Port’s operations. This
is supporting successful recruitment initiatives with record
applicants for operational roles towards the year end.
This year we continued to develop our people and train
our supervisors and managers. New front-line leadership
roles in operations have been established, providing
people with opportunities to grow into expanded roles
or hold additional responsibilities. Developing careers
is a priority for us; as we optimise our infrastructure
investments and grow our business and operations,
we also create opportunities for our people.
Employee engagement at Napier Port remains strong with
Kōrero Mai, our annual employee engagement survey,
showing overall engagement above 70%. Consistent
feedback from our team tells us that Napier Port is a great
place to work and that our team feels strongly connected
to Napier Port and our focus of building a thriving region.
We are encouraged that in another year of challenges,
our people feel connected to Napier Port and recognise
the role that they play in its achievements.
BUILDING A MORE
SUSTAINABLE FUTURE
Last year was a landmark year, with the establishment
of our Sustainability Committee and the launch of an
ambitious sustainability strategy along with our first
Climate Change Related Disclosure Report.
We are pleased with developments since, with good
progress made on measuring emissions and emissions
reduction planning, as we work towards net zero
emissions by 2050. An Emissions Reduction Strategy
developed this year will provide a framework for reduction
pathways going forward. We have widened the scope
of our emissions reporting, had our emissions inventory
audited externally for the first time by Toitū Envirocare
and we have published our second Climate Change
Related Disclosure Report.
The delivery against our sustainability strategy continues,
with our focus on being economically, socially and
environmentally sustainable and the activities we can
influence at a regional level. It is aligned to both the
United Nations Sustainable Development Goals (SDGs),
and the New Zealand Government’s position on the
SDGs that are incorporated into the country’s legal
and regulatory framework, and policy making.
More than 50 of the 100 identified actions are now either
completed or underway and a further 28 are in planning.
An update on the progress we have made on the 18
prioritised initiatives for 2021–2023 and our emissions
for FY22 can be found in the Sustainability section
of this report.
BOARD CHANGES
We have seen changes in our Board this year.
The Honourable Rick Barker will stand down at the
Annual Shareholders’ Meeting (ASM) in December.
Rick has been a hugely valuable member of the Board
since 2019 contributing to our focus on health and safety,
sustainability, and with a strong commitment to our region
and its people.
We welcomed two new directors, Kylie Clegg and
Dan Druzianic, whose combined legal and commercial
acumen, leadership and governance experience will add
great value to the Board.
We confirmed Blair O’Keeffe as the Chair successor with
the full support of his fellow directors. Blair has been on
the Board since 2019 and with governance experience in
local and central government and NZX-listed companies,
Napier Port will be in good hands. Blair will assume the
Chair role following the ASM in December 2022.
Retiring Chair, Alasdair MacLeod, leaves the Board at the
conclusion of this year’s annual meeting having led the
company through one of the most consequential periods
in Napier Port’s history. He leaves as his legacy a safer
port operation where people are valued first and foremost.
He has also successfully governed us through the initial
public offer and listing on the NZX, the company’s largest
ever investment and infrastructure development, and the
successful navigation of periods of national emergency,
including the Kaikōura earthquake, the global Covid
pandemic and unprecedented disruptions to national and
global supply chains. On behalf of shareholders and the
Napier Port team we thank Alasdair for his commitment
to Napier Port, its people and our region.
OUTLOOK AND DIVIDEND
We remain cautiously optimistic for the year ahead,
although there is no room for complacency within the
current economic environment. The operating environment
remains unpredictable and challenging.
Constraints on labour continue and still strong inflationary
pressures represent an ongoing and significant headwind
for the region’s primary sector exporters and Napier Port.
At the same time a global tightening in interest rates
and rising geo-political tensions continue to represent
a significant challenge to global economic activity
and a source of uncertainty.
We are encouraged by the ongoing and resilient demand
for our region’s food and fibre exports and that there are
some early signs of global shipping disruptions and pricing
starting to ease. As we move into the new financial year,
cruise ships have returned to Hawke’s Bay after a two-
year Covid-induced hiatus. We look forward to welcoming
the 88 cruise ships booked to visit during the 2022–2023
summer season.
With the opening of Te Whiti, we offer shipping lines and
customers a unique and compelling proposition. We are a
gateway to a thriving region that offers high-value cargo,
and we offer new, flexible and efficient road and rail routes
through to the wider North Island of New Zealand.
10 | NAPIER PORT
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TE HERENGA WAKA O AHURIRI

At Napier Port, we now have an uncongested port
operation with improved wharf availability providing
the flexibility to operate as needed to meet customers’
demands, and creating opportunities to ease congestion
across the wider New Zealand supply chain. We also
have a team that is dedicated to making the most of these
assets to drive the prosperity of our region, and with that
growth in cargo across our wharves.
All of this gives us confidence in our long-term future.
Meanwhile thanks to the deft execution of Te Whiti and
careful management of our capital across many other
strategic projects we have entered the new financial year
in a strong position. Taking these factors into account
Directors have resolved to pay a fully imputed final
dividend of 4.7 cents per share, taking total dividends for
the 2022 financial year to 7.5 cents per share.
On behalf of the Board and shareholders, we thank the
cargo owners who partner with us, and the ongoing
commitment and support of the entire Napier Port team.
We are proud of what we have all achieved.
We look forward to providing a further update at our
annual meeting in December.
Ngā mihi nui,


ALASDAIR MACLEOD TODD DAWSON
CHAIR CHIEF EXECUTIVE
RETIRING CHAIR
ALASDAIR MACLEOD REFLECTS
It really is the people – right across Napier Port –
that make it a fabulous place. Over the past eight years,
I’ve had the opportunity to meet a lot of the people
who make Napier Port work, and it’s been a privilege.
Getting to spend time with mechanics, electricians,
crane drivers, forklift drivers and pilots, as well
as administrative staff and management, has filled
me with pride at the people we have.
That extends to the Board as well. I am optimistic that
the region realises what a talented and committed
Board we have. They are a collegial, clever, capable
and occasionally challenging team of individuals who
are collectively amazing. I’ve never worked with a better
team and I know Napier Port is in good hands.
HIGHLIGHTS OF MY TIME AS CHAIR INCLUDE:
• our focus on health and safety: we’re not perfect,
but we constantly focus on getting people home safely
from the port every day, every night;
• hiring Todd Dawson: the right person, at the right time,
to build on the legacy nurtured by Garth Cowie;
• being part of the IPO process, from beginning to end:
it was one of the most challenging processes I’ve ever
been involved in, and one of the most satisfying to help
bring to a successful conclusion;
• being here through the Te Whiti process, from initial
design to successful completion: as a former Civil
Engineer, I probably poked my nose in more than
a good governor should, but I have no regrets; and
• encouraging Blair O’Keeffe to succeed me as Chair:
everyone should aspire to find someone brighter
and better than them to succeed them, and while
it’s obviously easier for me than for many, I’m delighted
to be handing the baton on to someone as massively
talented as Blair.
I have loved every minute of my eight years with
Napier Port and it remains a place dear to my heart.
My sincere thanks to the whole team for what they
deliver every day for our region, and to my colleagues
for entrusting me with the Chair role for the past
eight years.
"Ehara taku toa i te toa takitahi,
engari he toa takitini" –
My strength is not that of an individual,
but that of the many.
ALASDAIR MACLEOD
photo: Florence Charvin
11 | NAPIER PORT
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TE HERENGA WAKA O AHURIRI

CHIEF FINANCIAL OFFICER’S
MANAGEMENT DISCUSSION
AND ANALYSIS
OVERVIEW
The 2022 financial year saw a difficult first half of the
year. Reduced trading volumes, and therefore financial
results, as a result of continued shipping and supply
chain disruptions, weather events, and the widespread
emergence of Omicron in the community together
with general labour shortages, led to reduced overall
production within customer operations. The second
half saw a relative stabilisation in trade volumes
notwithstanding the ongoing effects of the lower primary
sector production from the first half.
Compared to the prior year, total Napier Port revenue
grew by $5.1 million, or 4.6%, to $114.5 million and the
result from operating activities decreased by 8.4% to
$40.1 million. Reported net profit after tax decreased by
11.8% to $20.4 million.
Our balance sheet remains in good shape. During the year
we refinanced our debt facilities, extending maturities and
introducing an additional source of funding by issuing,
for the first time, corporate bonds. In addition to $134
million of bonds issued and drawn bank debt, Napier Port
had $46 million in undrawn credit facilities, after having
spent the significant sum of $72.1 million on the 6 Wharf
(Te Whiti) construction project and other capital projects
during the year.
In conjunction with this annual report, Napier Port has
released Supplemental Trade Volume Data, Supplemental
Selected Financial Information and an Annual Results
Presentation, that together provide further trade
and financial information and which form part of our
2022 reporting suite of information for investors
and other stakeholders.
All documents are available in the Napier Port investor
centre at napierport.co.nz/investor-centre
REVENUE
Revenue of $114.5 million increased by 4.6% from the
prior year. This result was achieved due to improved
average revenues per unit across bulk cargo and container
services and despite annual volume declines in both areas,
and the practical absence of cruise vessel calls.
Container services revenue of $70.5 million was 7.8%
higher than the prior year.
Total annual container volumes decreased by 7.9%
to 254,000 TEU. Cargo laden full export and import
containers decreased by 9.2% to 143,000 TEU, while
empty and other container movements decreased 6.1%
to 112,000 TEU.
Dry export cargo was down by 6.0% to 63,000 TEU.
This reduction was mainly due to lower timber and general
cargo volumes.
Reefer exports decreased 16.0% to 48,000 TEU mainly
due to lower apple and pears, meat and other chilled
exports. Apple and pear reefer export volumes reduced
17.5% to 21,000 TEU compared to the prior year.
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Containerised imports decreased by 10.5% to 118,000
TEU primarily due to fewer import empty containers
required for export cargo.
Other container movements, including Discharge, Load,
Restows (DLRs) and transhipped containers, increased
6.9% to 18,000 TEU due to continued container
repositioning by shipping lines related to shipping
schedule disruptions.
Container services’ average revenue per TEU increased
by 17.0% compared to the prior year as a result of tariff
increases and the introduction of charges to recover the
cost of infrastructure investment, and additional revenues
earned as a result of continued container shipping
disruptions, including additional storage and refrigerated
container servicing. These gains were supplemented
by higher Port Pack packing volume and depot services
revenue during the year and the introduction partway
through the year of a fuel cost recovery charge which
helped to partially offset the large increase in fuel prices.
Container vessel calls were down to 203 ships from
242 ships in the prior year. Global shipping disruption
has continued to result in unpredictable schedules,
with scheduled calls missed or delayed reducing overall
container shipping capacity from New Zealand and
Hawke’s Bay. In addition, the Maersk OC1 Trident service
ceased calling Napier during the year.
Bulk Cargo revenue of $41.4 million was 0.3% lower than
the prior year.
Bulk Cargo total volume of 3.65 million tonnes was 7.6%
lower than the prior year. Log export volume decreased by
5.8% to 2.84 million tonnes due to the softer log export
market conditions in China throughout the year.
Charter vessel calls decreased to 310 from 343 last year
due to the lower bulk volumes and larger average vessel
load sizes for log charters.
Bulk Cargo average revenue per tonne increased by 7.9%
compared to the prior year. In addition to tariff increases
and the introduction of charges to recover the cost
of infrastructure investment, this growth resulted from
changes in the mix of bulk cargo and export customers
and an initial contribution from the commencement of the
log debarking operation.
A single domestic cruise vessel called during the
2022 financial year due to the closed international
maritime border.
EXPENSES
Total operating expenses grew by 13.3% to $74.4 million,
compared to 2021, with employee benefit expenses
increasing 10.5%, property and plant expenses increasing
by 33.4%, and other operating expenses increasing
6.2%. Expense increases reflect high cost inflation across
all expense categories. We have introduced revenue
generating recoveries for some of our bigger expense
items such as insurance and fuel which are helping to
offset some of the cost increases.

Employee benefit expenses increased due to
anticipated increases in employee numbers to continue
to develop our capability and resilience, and general
remuneration increases.
Property and plant expenses increased as a result
of fuel and power rate increases and increased repairs
and maintenance expenditure across our plant and
equipment to maintain fleet integrity as part of our critical
risk management programme and as a result of earlier
decisions taken to defer replacement capex. Lower cargo
volumes resulted in lower fuel consumption volumes for
our mobile plant and marine fleets, and diesel-powered
reefer generators. This also had the effect of decreasing
our total greenhouse gas emissions, which decreased
by 5.2%. However, on a per cargo tonne basis, total
emissions increased 4.6% with the inclusion for the first
time this year of the expanded Scope 3 emissions profile
categories – on a like for like basis, emissions on a per
cargo tonne basis decreased by 0.7%.
Other operating expenses increased due to another year
of significant increases in insurance costs in addition to
increased spend on staff welfare and pandemic response
costs, with these partially offset by lower operational
contract labour expenses.
The result from operating activities of $40.1 million
decreased by 8.4% compared to the prior year and as
a percentage of revenue was down from 40% to 35%.
Depreciation, amortisation and impairment expenses
increased by $0.5 million to $13.6 million which arose
from recent asset additions, including from the completion
of 6 Wharf (Te Whiti) in the fourth quarter of the year.
Other income was $2.0 million compared to $1.1 million
in the prior year. The current year benefited from an
unrealised investment property revaluation gain of
$1.8 million, compared to $1.2 million in the prior year.
Net finance costs increased to $0.8 million compared
to $0.04 million in the prior year. Gross finance costs
grew with increased borrowings and significant increases
in underlying market interest rates, together with the
increased amortisation of historic bank facility costs.
The majority of these costs have been capitalised as part
of the cost of assets under construction, principally
Te Whiti. Following the completion of this project,
the majority of finance costs are recorded in the
income statement.
Income tax expenses decreased by $1.4 million to
$7.2 million due to lower taxable profit in the current year.
The effective tax rate of 26% for the year is lower than
the statutory tax rate of 28% due to a non-assessable
investment property revaluation gain included within profit
before income tax.
Reported net profit after tax for the period attributable
to the shareholders of the Company of $20.4 million
decreased 11.8% from $23.2 million in the prior year.
Underlying net profit for the financial year, which excludes
unrealised property revaluation gains, was $18.6 million,
down from $22.0 million in the prior year.
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CAPITAL EXPENDITURE
Capital investment spend in the year of $72.1 million
included $56.5 million spent on completing the Te Whiti
construction project. Other investments included physical
safety improvements, the acquisition of ShoreTension
dynamic mooring units, paving improvements, Ahuriri tug
dry docking, maintenance dredging, replacement mobile
plant, and final payments for bulk cargo hoppers, the log
debarker, and mobile harbour crane log loading equipment.
CASHFLOW
Cashflow from operating activities decreased to
$33.0 million from $34.8 million year on year, with lower
underlying earnings only partially offset by improved
working capital in the current year.
Dividend payments during the financial year of
$15.0 million, including the final 2021 dividend paid
in December 2021 and the interim 2022 dividend paid
in June 2022, were $0.6 million lower than the year before.
After the net spend on investing activities of $71.9 million
and net proceeds from loans and borrowings, including
bond proceeds, of $55.2 million, cash balances increased
by $0.5 million during the year.
BALANCE SHEET
The positive progress with Te Whiti construction continued
during the year with the wharf’s official opening in July
2022. During the year, as we continued to complete the
construction works and close out remaining project risks,
we further lowered the cost estimate for the project to
$173 million, down from the original estimate of between
$173 million and $190 million, excluding capitalised
overheads and finance costs. In the final accounting,
the final construction cost was $171.1 million, excluding
capitalised overheads and finance costs totalling
$8.3 million over the life of the project which have been
included within property, plant and equipment in the
balance sheet.
Coinciding with the completion of Te Whiti and the
corresponding reduction in enterprise risk, we refinanced
our debt funding arrangements towards the end of the
financial year. We extended the maturity dates of our
existing facility agreements with Westpac New Zealand
and ICBC New Zealand and achieved longer tenor
and diversity of funding by issuing corporate bonds for
the first time. We issued $100.0 million of unsecured,
unsubordinated 5.52% fixed rate bonds, maturing in
March 2028, that are listed for trading on the NZX Debt
Market. The bond proceeds were used to repay bank debt
and for general corporate purposes. We were pleased
to provide a preferential opportunity to our shareholders
to participate in the offer and then to be able to allocate
100% of the offers received resulting in shareholders
taking up $13.1 million of the initial issue.
In addition to the drawn bank lending of $34.0 million
and $100.0 million of bonds issued at the balance date,
Napier Port had $46.0 million in undrawn credit facilities.
As a result of our debt refinancing, as at the balance date,
our weighted average term to maturity was a healthy
4.7 years.
During the year our sea defence assets were revalued,
which occurs periodically as the assets are carried in our
balance sheet at fair value. Fair value is determined by
external valuers on an optimised depreciated replacement
cost basis. In addition to $31.1 million of additions relating
to Te Whiti construction, a total revaluation uplift of
$28.7 million (pre-tax) was recorded within property, plant
and equipment and the revaluation reserve during the
year relating to sea defence assets. The revaluation result
reflects increases in estimates for construction costs
and contingencies, amongst other factors, since the
last revaluation.
As a result of spend on capital assets, the revaluation of
sea defences, increases to the net fair value of hedging
instruments, and retained earnings during the year, total
assets have grown to $562.7 million at year end with total
shareholders’ equity of $392.0 million and net loans and
borrowings of $131.2 million, compared to total assets of
$480.0 million, shareholders’ equity of $354.8 million, and
loans and borrowings of $77.1 million, for the prior year.
DIVIDEND
Subsequent to the balance sheet date, the Board
approved a fully imputed final dividend of $9.4 million
(4.7 cents per share) in respect of the 2022 financial
year, payable on 15 December 2022 to those on the
share register at close of business on 5 December 2022.
Including the fully imputed interim dividend of $5.6 million
(2.8 cents per share) paid in June 2022, dividends
in respect of the 2022 financial year total 7.5 cents
per share (2021: 7.5 cents per share).
KRISTEN LIE
CHIEF FINANCIAL OFFICER
DEBT MATURITY PROFILE
MILLION ($)
2.53.03.54.04.55.05.5
YEARS TO MATURITY
Bank Facilities Bond
10 0
80
60
40
20
0
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OUR TRADE PORTFOLIO
The mix of products flowing in and out of Napier Port
reflects our diversified regional trade base.
The Hawke’s Bay region is home to major New Zealand producers, processors and
exporters of primary produce, and Napier Port is proud to be their regional gateway to
global markets. The majority of businesses exporting through Napier Port are located
within 100 kilometres of the port. Exports comprise 82% (by weight) of cargo, and include
logs, wood pulp, pipfruit, timber, meat and fresh produce.
Napier Port receives imports for the Hawke’s Bay region and lower North Island, and has
capacity and the landside logistics in place to increase this quantity, relieving pressure
from congested northern ports. Imports represent 18% (by weight) of cargo, and include
fertiliser, oil products, general cargo and foodstuffs.
EXPORT PRODUCT MIX
FY2022 BY WEIGHT
Logs .......................65%
Wood Pulp ..........10 %
Pipfruit ..................5%
Timber ...................5%
Meat ......................4%
Fresh Produce ....2%
Other .....................9%
REVENUE BREAKDOWN
FY2022
Container Services ...........62%
Bulk Cargo .........................36%
Other ....................................2%
EXPORT/IMPORT SPLIT
FY2022 BY WEIGHT
Exports ................................82%
Imports ................................18%
IMPORT PRODUCT MIX
FY2022 BY WEIGHT
Fertiliser ................30%
Oil Products ........30%
General Cargo ....16%
Foodstuffs ............8%
Cement .................7%
Other .....................9%
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HOW NAPIER PORT
CREATES VALUE
OUR PURPOSE:
TOGETHER WE BUILD A THRIVING REGION
BY CONNECTING YOU TO THE WORLD.
OUR RESOURCES
PEOPLE
Our motivated and engaged workforce, who have pride in
their work keeping the cargo flowing across our wharves.
SKILLS AND KNOWLEDGE
Our deep expertise in port operations and logistics,
and the creation of technology solutions for our business
and our customers.
PHYSICAL ASSETS
Our assets and infrastructure, including port land,
wharves, sea defences, dredged shipping areas,
marine and heavy plant fleet, and inland ports.
FINANCIAL
Financial capital provided by our shareholders
and debt funders.
RELATIONSHIPS
Our strong relationships with stakeholders – cargo owners,
shipping lines, transport partners, local community, iwi –
give us our social licence to operate and grow.
NATURAL ENVIRONMENT
The marine and natural environment and how we work
within it alongside stakeholders and our community
is fundamental to our business.
OUR OUTCOMES
PEOPLE
We provide purposeful and safe employment
and development opportunities for our people.
ECONOMIC
We enable and enhance our regional economy, including
significant industries, businesses and individual operators.
INFRASTRUCTURE
We maintain and add to our infrastructure for the benefit
of current and future generations.
FINANCIAL
We provide economic returns to our financial
capital providers.
COMMUNITY
We enhance our local community by being a good
corporate citizen, providing employment and supporting
community and iwi initiatives.
ENVIRONMENT
We support the maintenance and enhancement of our
marine environment and our environmental stewardship
and impact.
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OUR FOUNDATION
SUSTAINABILITY FOCUS
Our focus on sustainability enables us
to care for our environment, creating
a positive legacy for the future.
CULTURE OF CARE
Our strong, resilient and agile workplace culture
with a focus on health and safety attracts
and retains our high-performing workforce.
SERVICES WE PROVIDE
BULK CARGO SERVICES
We provide the infrastructure and storage facilities for
cargo owners to load and unload bulk and break-bulk
cargo. We also provide log debarking and vessel log-
loading services.
CONTAINER OPERATIONS SERVICES
We provide a full-service offering handling all container
movements between the entrance gate and onto vessels
including on-site storage and refrigerated container
handling. We also provide empty container depot
services to shipping lines.
MARINE SERVICES
We provide pilotage, vessel towage and berthing and
mooring services, including for visiting cruise vessels.
LANDSIDE LOGISTICS SERVICES
We provide landside freight transportation solutions to cargo
owners and freight forwarders to get cargo to and from our port.
WAREHOUSING SERVICES
We provide a range of value-add services including
container packing and unpacking, on-port warehousing
facilities and cargo-handling.
OUR STRATEGY GOALS
To better achieve our purpose, we are focusing on:
CONNECTING WITH OUR CUSTOMERS
A close connection with our customers
enables us to know them, their businesses
and the environment they are operating in,
so we can develop innovative and efficient
cargo solutions.
HARNESSING OUR DATA
AND TECHNOLOGY
Our innovative technology delivers value
to our business, and to our customers and
others outside the port gate.
A NETWORKED INFRASTRUCTURE
Connecting customers’ cargo to market and
enhancing end-to-end supply-chain solutions
via an integrated network of infrastructure assets.
COLLABORATIVE PARTNERSHIPS
Partnerships with others help us achieve a
better outcome than we would on our own.
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WHY ‘TE WHITI’?
Te Whiti means ‘to transfer or exchange’,
reflecting the transfer of goods from our region
to the world. It also means to shine, indicating
rays emanating from Hawke’s Bay.
The Napier Port Kāhui took a leading role
in naming Te Whiti, researching suitable names
and their meanings and putting forward
the name that was ultimately selected.
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Te Whiti opened for business on 22 July 2022, a multi-generational
asset for Hawke’s Bay and the New Zealand supply chain.
Known as 6 Wharf during its construction, this significant investment in local
infrastructure increases access to global markets for cargo owners from
Hawke’s Bay and the central and lower North Island. The new wharf significantly
increases our container-berth capacity and opens up access to all our wharves,
increasing operational flexibility. It also allows us to berth the larger container
ships now arriving in New Zealand waters, as well as the cruise ships returning
to Hawke’s Bay in October 2022.
Te Whiti was delivered ahead of schedule and below the budgeted construction
cost range of $173 million to $190 million, and was enabled by our listing on
the New Zealand Stock Exchange in 2019. Navigating construction constraints
during the pandemic is testament to the hard work and ingenuity of our
employees and construction partners.
Safety was a key pillar of the new wharf build, with zero serious-harm
incidents throughout.
The new wharf has been built to Seismic Importance Level 4 as defined in the
New Zealand Building Code, and strengthens Hawke’s Bay’s resilience in the
event of a significant earthquake. Napier Port is part of Hawke’s Bay’s critical
lifeline infrastructure and will be essential in providing access to the region
in the event of a natural disaster.
“Te Whiti strengthens our operational agility
and resilience, delivering capacity to support
future regional economic growth.”
Alasdair MacLeod, Chair
TE WHITI –
OUR NEW WHARF
OPENS FOR BUSINESS
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MOORMASTER AUTOMATED
MOORING UNITS
In a first for a New Zealand container port, Te Whiti
features ten double-padded automated vacuum-mooring
units. Known as MoorMasters, the units were designed
in Christchurch, New Zealand, by Cavotec, and
manufactured in Italy.
MoorMaster units use remote-controlled vacuum pads
to moor and release vessels in seconds, constantly
adjusting for movements in swell, draft and tides. The units
significantly reduce vessel turnaround time, by cutting
mooring time and increasing crane productivity through
reduced vessel motion. The technology also improves
mooring safety and reduces emissions by reducing
tugboat time.
Incorporating MoorMaster units in Te Whiti’s construction
involved building new electrical infrastructure and a data
hub to operate the technology.
SUSTAINABILITY DURING
TE WHITI’S CONSTRUCTION
Sustainability was at the heart of Te Whiti’s construction,
with environmental planning and consultation a core tenet
of the project.
Mana whenua has been with us on this journey from the
start, working with us to protect and enhance our local
marine environment during construction. We appointed
our first Pou Tikanga, Te Kaha Hawaikirangi, to support
our ongoing cultural and environmental journey.
Highlights of our partnership include:
• launching the Marine Cultural Health Programme,
• creating two artificial reefs with limestone from
a dismantled revetment wall,
• establishing an on-port kororā sanctuary,
• undertaking regular commercial fishing and water-quality
surveys to monitor any changes, and
• protecting the marine environment, in particular Pānia Reef.
Our resource consent application for Te Whiti’s
construction and associated dredging was approved
without appeal to the Environment Court, an indication
of the thorough consultation with mana whenua hapū,
divers, recreational fishers and the wider community.
Going forward, our Marine Cultural Health Programme will
continue to monitor the marine environment around our port.
TE WHITI IN NUMBERS
6

months ahead of schedule
400reinforced concrete piles
$
171.1
million construction cost
(budget $173–$190 million)
4500
seawall revetment
armour blocks
350 metres long + 40m finger10
MoorMaster automated
mooring units
33overnight concrete deck pours227kororā microchipped
2artificial reefs built with limestone from a dismantled revetment wall
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“Te Whiti’s commercial, debt-funded
investment business model is a
fantastic example of what can be done
with the right support and vision.”
Todd Dawson, CEO

TE WHITI’S JOURNEY
2015
Scientific investigation and wharf
design commences
2016
Consultation begins with local iwi,
recreational fishers, and the wider community
2017

Planning consent application lodged
2018

Planning consent granted
2019
Napier Port listed on the New Zealand
Stock Exchange
Port team travel to Port Salalah, Oman,
to investigate mooring solutions
On-port kororā sanctuary opens. Kororā from the
dismantled limestone revetment wall are relocated
to the sanctuary
Limestone from the dismantled revetment wall
is used to create two new artificial reefs
2020
Construction begins, with ground-breaking ceremony
on 5 February
Marine Cultural Health Programme launched,
an initiative to monitor marine health
in partnership with local mana whenua hapū
2021

MoorMaster mooring units arrive from Italy
Construction continues throughout Covid lockdowns
2022

Final overnight concrete deck pour
Electrical substation and data room completed
Capital dredging programme completed
Wet commissioning ship trials undertaken
Groundwork improvements completed
New wharf handed from construction team
to operations team
Te Whiti officially opens for business on 22 July
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OPENING CELEBRATIONS
Te Whiti’s official opening day, 22 July 2022, was a day of celebration
to mark the handover of the wharf to our operations teams.
The new wharf was officially open for business!
We started the day with a beautiful dawn karakia, with mana whenua
and port whānau joining together to unveil 6 Wharf’s formal name, Te Whiti.
The karakia, led by Tā i te Kawa rōpū of Ngāti Kahungunu, acknowledged the
connections between Napier Port, local iwi and the environment around us.
At midday we were joined by hundreds of people who played a part
in Te Whiti’s creation: representatives from the port team, mana whenua,
customers, shareholders, contractors, suppliers, construction partners,
and our neighbours and community. Customers showcased their products
at a trade fair alongside displays from different parts our business operations.
Board Chair Alasdair MacLeod, CEO Todd Dawson and GM Assets and
Infrastucture Michel de Vos all spoke at the event, and the Napier Port Kāhui
performed. At the end of the ceremony five ship bells sounded and the
cranes and reach stackers swung into action, officially opening the wharf
for business and giving guests a close-up view of loading a container ship.
An incredible day culminated in a fireworks display at night, thanking our
Hawke’s Bay community and announcing Te Whiti’s launch in spectacular fashion.
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READY FOR GROWTH –
INFRASTRUCTURE INVESTMENT
CONTINUES AT PACE
Te Whiti’s construction has been our biggest infrastructure project for
a generation, but it hasn’t been at the expense of other infrastructure
investment on port. In the past year we have continued to invest
in our on-port infrastructure, with our new investments increasing
the services offered to cargo owners and shipping lines, reducing
our impact on the environment and improving safety on port.
ON-PORT DEBARKER
In early 2022 our mobile log debarker began operating
on port. Debarking strips the top layer of bark from logs
bound for export markets, and is an alternative pest
eradication measure to methyl bromide fumigation, which
ceased to be used at Napier Port this year.
As well as reducing the environmental impact of methyl
bromide fumigation, the log debarker has the added
benefit of repurposing bark into mulch to be used on
orchards, gardens and planting projects. It also improves
our log yard utilisation and log turnover capability, and has
created employment through two new teams of people
hired to operate the debarker in shifts.
Construction of the debarker was made possible through
partnerships with several key logging customers.
MOBILE HARBOUR
CRANE LOG GRABS
Three new log grabs have been designed, built and fitted
to our existing mobile harbour cranes, to be used for
loading logs onto vessels for export.
The Napier Port team worked with engineers Page Macrae
Engineering and stevedores C3 to create and implement
the grabs. The process of using electric motors to integrate
grapples to our existing cranes is a world-leading design.
The new log grabs eliminate a critical risk from our
operations, removing people from the area where the logs
are lifted. Previously, log bundles were tied by steel cables
and loaded onto vessels by ship’s cranes. Using log grabs
will allow us to service vessels that don’t have their own
crane on board.
Loading logs using the new grabs is expected to create
operational efficiencies for our customers, helping us to
effectively manage the forecast increased log volumes.
Our cranes will operate the log grabs, increasing the
services we can offer our log exporters.
“We continue to put in place the
infrastructure and capabilities that will
underpin the success of Napier Port
and the economy of Hawke’s Bay.”
Alasdair MacLeod, Chair
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SHORE TENSION DYNAMIC
MOORING SYSTEM
ShoreTension dynamic mooring units are replacing use
of traditional mooring lines on port, eliminating a critical
risk from mooring operations. These mooring units
remove people from close proximity to mooring lines,
and also greatly increase the speed and efficiency
of mooring operations.
ShoreTension units are automated, using hydraulic rams
to keep the lines at a constant tension in changing weather
conditions. They reduce the ability for vessels to sway or
surge while at berth, which in turn reduces the likelihood that
vessels will be unable to berth because of poor weather.
Napier Port has two ShoreTension units in operation at
30 September, and four more units being installed in the
first half of the coming year. These mobile units can be
moved between wharves as needed.
HOPPERS
Two new hoppers arrived on port in September,
the culmination of a project between Napier Port,
nutrient and fertiliser manufacturer Ravensdown and
stevedores SSA. The hoppers are used in the unloading
of imported fertiliser components, which are then trucked
to Ravensdown’s site some 9 km away in Awatoto.
CONTAINER-HANDLING
EQUIPMENT
We’ve recently invested in new container-handling
equipment, purchasing two new reach stackers and two
empty container handlers from Kalmar Global. As well as
delivering for our operational needs, the new equipment
rates highly on the sustainability front by reducing
carbon emissions through fuel efficiency, in some
cases up to 50 per cent.
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SHIPPING AT NAPIER PORT
Shipping lines are an essential part of the global supply chain,
connecting New Zealand with our export and import markets throughout
the world. At Napier Port we currently welcome 10 container shipping lines
to our wharves throughout the year.
Primarily an export port for our region’s primary producers,
we are also an alternative option for out-of-region cargo
owners, who choose to ship through Napier Port. Our six
wharves, including 350m-long Te Whiti which came online
this year, offer ample cargo capacity, and we connect
with daily road and rail links throughout the North Island,
including to our freight hub at Manawatū Inland Port.
Shipping lines confirmed the ease of working with
Napier Port in this year’s annual customer survey,
citing high service levels and good access to staff.
We aim to work proactively with shipping customers
to do all we can to alleviate shipping congestion
disruption for cargo owners.
“With the opening of Te Whiti, we offer
the shipping lines and our customers
a unique and compelling proposition.”
Todd Dawson, CEO
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CUSTOMERS’ VOICE
Each year we offer our customers the opportunity to anonymously review
Napier Port’s services, providing feedback on what we do well and where
we can improve. Surveys are sent to cargo owners, shipping lines, shipping agents,
freight forwarders and transport operators, in order to give us a broad
overview of how we’re doing.
This year’s survey resulted in an average customer satisfaction score of 7.5 out of 10,
exceeding our target of 7.0. As well as compliments, we received helpful feedback and
suggestions which we are taking into our planning for future services. We always want to
do better, and customer feedback is a crucial part of informing development of our services.
Communicating with our customers isn’t limited to an annual survey, of course – we love staying
connected with our customers throughout the year. In our customers’ words:
‘Your people are your key strength. They will try to assist as much as is possible.’
‘Napier Port is customer-focused for best outcomes.’
‘Relationships and approachability of staff at all levels.’
‘Good relationships at all levels from CEO down. Helpful and enjoy good open discussions.’
‘Thinking outside the box on problem-solving – not afraid to try new things or do things differently.’
‘The team are great to deal with and the port systems we use are very user-friendly.’
‘Professionally run environment with great communications.’
‘The service levels show we get good value for calling Napier Port.’
‘Napier Port’s technology tools are a key strength.’
“Thank you to our customers for trusting
that we do everything we can to open up new
opportunities to get your cargo to world markets,
and welcome visitors to our region.”
Todd Dawson, CEO
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Napier Port offers a site-to-sea logistics service, optimising
container and bulk cargo movements for cargo owners throughout
the central and lower North Island. The port is connected to the rail
and State Highway networks of the North Island and a series
of strategically located inland ports, enabling us to optimise the flow
of cargo and offer freight solutions to out-of-region customers.
Launched in 2021, the Napier Port Logistics Service partners with KiwiRail,
road transport providers and cool-store operators to provide cargo owners
with seamless freight options across the North island.
How does it work? As we have visibility of the containerised imports and exports
before a vessel arrives at Napier Port, we can optimise the landside network
on a large scale. By co-ordinating landside transport options with customer
demand and shipping schedules, we are able to:
• reduce supply-chain lead times
• plan efficient container movements
• balance import and export capacity on the network, and
• reduce carbon emissions through efficient use of resources.
MANAWATŪ INLAND PORT
Manawatū Inland Port (MIP), our freight hub based at Longburn, near
Palmerston North, is a key part of our landside logistics offering.
A joint venture with Ports of Auckland and Talley’s Group, MIP provides inland
port services to shipping lines from its 1.9ha container yard and warehousing
infrastructure. This means that cargo owners can hire and dehire containers
at MIP, shortening hireage times and reducing costs, as well as access a range
of other port services. Rail and road services regularly run between Napier Port
and MIP.
NAPIER PORT
LOGISTICS SERVICE
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OUR LOGISTICS SERVICE IN ACTION
PREMIER BEEHIVE
Premier Beehive has been crafting bacon, ham and
smallgoods in New Zealand for over 25 years. The company
processes imported meat products in its premises in
Carterton, Wairarapa. Packaged goods are then sold
throughout New Zealand under the Beehive brand.
The company uses the Napier Port Logistics Services to
efficiently arrange its landside cargo movements to its
network of cool stores throughout the lower North Island.
Our inhouse logistics team works closely with Premier
Beehive’s shipping coordinator, securing rail capacity
and co-ordinating rail bookings with shipping arrivals.
This focused collaboration results in an efficient cargo
movements, removing surplus capacity from the supply
chain and working together to accommodate shipping
schedule changes.
Premier Beehive also dehires empty containers at
Manawatū Inland Port, a more cost-effective solution than
returning empty containers to port.
Ross Cummins, Premier Beehive’s National Supply
Chain Manager, says, ‘The team at Napier Port work very
collaboratively with us providing a cost effective, reliable
and efficient supply chain from the port to us. The last
couple of years have been incredibly difficult, from a supply
chain perspective, and we really appreciate the flexibility,
support and can-do approach from the team at Napier Port
and MIP who made it a lot easier than otherwise would
have been the case.’
BOOTH’S GROUP
The Napier Port Logistics Service partners with road
transport providers throughout the lower North Island,
which offers cargo owners schedule flexibility and door-to-
door freight options. The success of New Zealand’s supply
chain relies on efficient, reliable road transport options and
roading networks.
Booth’s Group, which incorporates Tomoana Warehousing
and Transport, is an important part of our regional supply
chain, offering a range of freight and warehousing services
to cargo owners. Our two businesses work closely
together to coordinate trucking movements with shipping
schedules, presenting an efficient, end-to-end freight
solution for cargo owners moving their product through
Napier Port.
Booth’s Group Director Trevor Booth adds, ‘Booth’s highly
values its close working relationship with Napier Port.
We frequently collaborate to offer both inbound and
outbound freight owners and agents seamless, timely
and cost-effective logistics solutions.’
KIWIRAIL
KiwiRail is a critical link in New Zealand’s supply chain,
moving about 25 percent of New Zealand’s exports
throughout the country.
KiwiRail and Napier Port have a productive and valued
partnership, working together for the benefit of cargo
owners. Our logistics teams work to co-ordinate rail
movements with shipping line arrivals and departures,
offering rail capacity to cargo owners on KiwiRail’s regular
services between Napier Port and Manawatū Inland Port
and throughout the lower North Island.
Rail services are a sustainable, low emission mode of
transport, and KiwiRail is committed to working with its
partners to create opportunities for sustainable cargo
transport. We work with KiwiRail and cargo owners to
align operational capacity and service options, booking
both export and import cargo to keep the trains as full
as we can for each run.
HASTINGS
WAIROA
GISBORNE
TAUPO
PALMERSTON
NORTH
NEW
PLYMOUTH
OHAKUNE
ROTORUA
HAMILTON
NAPIER
WELLINGTON
WHANGANUI
TAURANGA
AUCKLAND
THAMES STREET DEPOTS
NAPIER PORT
WHAKATŪ INLAND PORT (PLANNED)
MANAWATŪ INLAND PORT
HASTINGS
WAIROA
GISBORNE
TAUPO
PALMERSTON
NORTH
NEW
PLYMOUTH
OHAKUNE
ROTORUA
HAMILTON
NAPIER
WELLINGTON
WHANGANUI
TAURANGA
AUCKLAND
THAMES STREET DEPOTS
NAPIER PORT
WHAKATŪ INLAND PORT (PLANNED)
MANAWATŪ INLAND PORT
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Technology is a vital component of every part of our business, improving operational
efficiency and adding value to the services we offer our customers.
Our Digital Technology team develops applications and technology solutions
for use right across the port. Some highlights from the year include:
TE WHITI / 6 WHARF DATA HUB
Our new wharf, Te Whiti, has been built with technology
to the forefront, with a purpose-built, centralised data
hub at its core. The data hub is part of the wharf’s new
electrical substation.
The new data hub contains the technology that operates
the ten MoorMaster automated vacuum-mooring units
on Te Whiti. It also provides wireless connectivity to the
tablets operating the MoorMaster units, and gathers
the environmental data from on-port tide and wind
gauges that MoorMaster units use for their continual
mooring adjustments.
We also use the new data hub as a central hub for our
digital radio network, and to operate the new wharf’s
CCTV (closed circuit television) surveillance cameras.
“Workstreams promoting Technology
and a Digital Future are an important
part of our Sustainability Strategy.”
A Sustainable Future – Napier Port Sustainability Strategy
WAREHOUSE
MANAGEMENT SYSTEM
Our new warehouse management system (WMS) went
live this year, providing benefits to our operations team
and our customers. The WMS is operated via a user-
friendly mobile app, and the single system and scanner
solution allows us to more efficiently process cargo
through our on-port warehousing service, reducing costs
and improving customer services levels.
Operating a single WMS enables us to consolidate
training requirements, reduce downtime due to scanner
change-overs and repairs, boost productivity by auto-
allocating incoming products to locations, and manage
our own hardware solutions. The new WMS also gives
us greater insights into customer data, and enhanced
reporting and customised billing infrastructure.
Our inhouse expertise with applications development
and terminal operating system Navis enabled us to create
and further develop the WMS inhouse. We will continue
working with customers over the coming year to expand
the WMS application to other customers, products
and supply chain opportunities.
TECHNOLOGY SOLUTIONS
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PORT ACTIVITY MAP
Our interactive Port Activity Map (PAM) has been live for
several years now, enabling site work alerts to be issued
and viewed straightaway. This application is a user-friendly
visual tool that allows port users to instantly see site work
activity in one place in real time.
In the past year, we’ve added reporting capability from
our on-port wind gauges, crucial safety information
in a port environment. We’re also beta testing showing
the locations of our heavy plant through GPS trackers,
and have restarted training paused due to Covid.
Other New Zealand ports are working with us to learn
from our experiences establishing the port activity map
and leverage our GIS expertise, improving safety across
the port industry nationwide.
PROPEL
This year we continued to develop Propel, our customer
portal for on-port landside logistics bookings. Propel
can now be used for vehicle bookings, rail transport
management, import and export pre-advice and empty
container returns.
Our customers report that our digital tools increase
efficiency and are easy to work with. We plan to keep
extending Propel’s functionality in the coming year.
SHAREWATER HARBOUR
MANAGEMENT SYSTEM
Our Harbour Management System (HMS), named
Sharewater, is used to plan vessel movements and
optimise berth availability. It was designed and built
inhouse, and the people who use it every day were
heavily involved in its development.
In the past year, Port Otago has implemented
Sharewater for their own harbour management
requirements. The cross-port collaboration has been
a highlight, and we are pleased to provide ongoing
technical support for Sharewater going forward.
In our annual customer survey, shipping agents affirmed
the usefulness of the Sharewater HMS to their businesses,
and appreciated their direct access to the system.
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We want everyone who comes to Napier Port to go home safely every day.
Napier Port is on a health and safety journey, constantly working to effectively
embed a safety mindset throughout our business. Our goal is to create a
‘generative’ health and safety culture, which means that we want safety ideas to
be raised from within our operational teams, who feel empowered and motivated
to report safety concerns and develop appropriate solutions.
Safety is, and must remain, at the heart of everything we do.
COMPLETION OF OUR
FOUNDATIONAL ROADMAP
This year we completed our three-year health and safety
foundational roadmap, which had three main objectives:
1. ISO SAFETY MANAGEMENT IMPLEMENTATION
We have implemented 12 ISO 45001 standards over the
past three years, completing this programme of work in
2022. ISO 45001 focuses on the proactive prevention of
work-related injuries and ill health. The ISO framework of
Check – Act – Plan – Do underpins our Health and Safety
Management Plan.
As a result of our ISO certification journey, we have
now employed a Training Advisor to lead our operations,
business, leadership and safety training and development
throughout the business.
2. CRITICAL RISK CONTROL
MANAGEMENT PROGRAMME
Critical risks are risks that have the potential to cause
significant injury, illness or fatality at work. While these
risks may occur less frequently than others, they have
the potential to cause the greatest harm to workers.
During our three-year programme we have identified
26 critical risks on port. We have completed 23 bow-tie
assessments and developed procedures for reducing
potential for harm.
HEALTH AND SAFETY
CC
UU
LL
TT
UU
RR
EE

OO
FF

CC
AA
RR
EE
D
O
C
H
E
C
K
A
C
T
P
L
A
N
Policy
Governance
& Due
Diligence
ISO45001
Safety
Management
System
Regulatory
Compliance
Critical Risk
Control
Management
Health &
Wellbeing
Assurance
Programme
Continuous
Improvement
REPORTING
FRAMEWORK
RISK
RELATIONSHIPS
RESOURCES
METRICS
BOW TIE DIAGRAM
IMPLEMENTATION
PLAN
RISK PROFILE
ISO45001
PDCA CYCLE
MATURITY
PLAN
HEALTH & SAFETY
MANAGEMENT PLAN
Our health and safety plan on a page.
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3. SAI 360 HEALTH AND SAFETY
MANAGEMENT SYSTEM
Our SAI 360 health and safety management system is
used to record safety incidents on port. Its implementation
is now complete and is well understood and used
throughout the business. Data from SAI 360 helps to
guide our risk-control management.
OUR NEW MATURITY ROADMAP
We’re now underway with our health and safety maturity
roadmap, following on from our foundational roadmap.
Our goal is to keep our people safe at work, and the maturity
roadmap helps us to do this by achieving best practice in
health and safety. It also has three key workstreams:
1. CRITICAL RISK CONTROL
MANAGEMENT PROGRAMME
Our understanding and mitigation of critical risk in the port
environment continues to develop as operations evolve.
We undertake bow-tie risk assessments for each critical
risk, followed by a rigorous risk controls improvement
programme to mitigate critical risk and an inspection and
verification programme to check effectiveness of risk
controls in action.
2. HEALTH AND WELLBEING FRAMEWORK
Wellbeing is a priority at Napier Port, with a range of
wellbeing services provided for our workforce. We seek
to take a proactive approach, with occupational health
services delivered on port and a focus on education
and prevention of injuries.
We surveyed our people during the year to ask which
wellbeing initiatives were most widely valued. Following
this consultation, we prepared a calendar of all our
wellbeing initiatives that will be updated throughout
the year ahead.
Current wellbeing initiatives include:
• Onsite nurse
• An online wellbeing hub where our people can access
information on services in one place.
• Support with managing shift work and fatigue
• Onsite massages
• MoleMap skin checks
• Fresh fruit in breakrooms
• Participation in national awareness-raising events,
such as Mental Health Awareness week.
3. EMERGENCY MANAGEMENT
While we can’t know exactly when an emergency on port
will occur and what it will be, we can prepare for possible
scenarios through training and simulated exercises.
Our goal is to be ready to calmly and quickly respond
to emergency situations.
We now include the Coordinated Incident Management
System (CIMS) in our emergency preparedness work.
CIMS is a standardised national approach for emergency
preparedness and management used by many businesses
and agencies throughout New Zealand.
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This year we trained our operations leaders in the
CIMS framework for managing emergencies on port.
Emergencies on port don’t only affect Napier Port
employees – we interact with people from many different
businesses in our work environment. Knowing how to
work effectively in an emergency with these businesses,
and other organisations such as Fire and Emergency
New Zealand, Maritime New Zealand, New Zealand Police
and the National Emergency Management Agency, means
we'll have a more effective response to emergencies.
HEALTH AND SAFETY
REPRESENTATIVES
Our Health and Safety Representative Committee
provides everyone at Napier Port a supported channel
to raise and discuss safety issues, and provides a level
of oversight over safety issues on port.
Every Napier Port team has regular health and safety
meetings, and its own Health and Safety rep who supports
team members with safety concerns. Reps also play
a key role in our port-wide Verification and Assurance
Programme, which targets critical risks.
FATIGUE RISK MANAGEMENT
Napier Port operates 24 hours a day, meaning many
of our team are rostered workers, making fatigue
management an important issue.
Our Fatigue Risk Working Group focuses on fatigue
risk, and provides oversight and expertise in this area.
The group includes representatives from across
our operations teams, our health and safety team
and managers and supervisors.
Some of our recent fatigue initiatives include:
• a fatigue mentor programme, where experienced team
members share their knowledge and practical solutions
to fatigue management
• the addition of a fifth shipside team to our container
operations shift roster, helping to mitigate fatigue risk
across the whole shipside roster.
PORT SAFETY REVIEW
In 2022, Maritime New Zealand and WorkSafe conducted
a review of New Zealand’s 13 major commercial ports,
reviewing each port’s safety culture and procedures.
While the full review has not yet been publicly released,
we can report that Napier Port had no immediate issues
to remedy arising from the review. Nevertheless, we remain
committed to continual improvement of our health and
safety at Napier Port.
“Health and safety is fundamental
to our culture.”
Todd Dawson, CEO
HEALTH AND SAFETY
AT A GLANCE
1843

Health and Safety inductions completed (2021: 3083)
857

places on health and safety courses (2021: 310)
2.87
lost time injury frequency rate per
200,000 hours worked (2021: 6.57)
11
Critical Risk bow ties developed,
giving a total of 23 (2021: 12)
6
ISO45001 frameworks introduced,
giving a total of 11 (2021: 5)
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The Covid pandemic’s effects on the global supply chain and shipping congestion
are well documented. Cargo owners throughout the country grappled with
increased shipping costs and schedule uncertainties.
As a maritime border, and a trade gateway for
Hawke’s Bay, Napier Port kept the cargo flowing across
our wharves during all of the pandemic’s phases. In the
early days of the pandemic, keeping our people safe from
Covid entering through the maritime border was our focus;
once Covid became endemic in the community we pivoted
to supporting our people when they caught the virus,
and keeping the port open for business.
KEY POINTS OF OUR COVID
RESPONSE
Napier Port was designated an essential business during
nationwide lockdowns, as cargo movements in and out
of Hawke’s Bay were critical for the region. We used a
range of strategies to manage Covid, keeping our people
safe and our region protected from Covid entering via the
maritime border. Key initiatives included:
• Our border-facing employees tested multiple times
a week with nasopharyngeal testing for the duration
of the pandemic, and our pilot team wore full PPE
during vessel calls.
• We set up a testing laboratory on port and undertook
daily PCR saliva testing of all employees. The testing
identified Covid infection before it became contagious.
• Employees separated into work groups (called ‘bubbles’)
to avoid cross-contamination between teams if one
person became ill.
• Mask-wearing, deep cleaning and social distancing
became part of business as usual.
• We mandated full vaccination for our employees and all
port users after extensive consultation and risk analysis.
Vaccination requirements were subsequently removed
in line with government guidance.
ON-PORT TESTING LABORATORY
We implemented on-port PCR testing in November 2021
as an additional protective measure, providing reassurance
for our people and their families and keeping Napier Port
open for business. PCR surveillance rapid saliva testing
is more sensitive than the publicly available Rapid Antigen
Testing (RAT), and identifies Covid infection before it
became contagious.
The PCR surveillance rapid saliva test was developed
by Yale University, and is approved as a diagnostic test
by the US Food and Drug Administration (FDA). We set
up our testing laboratory using testing equipment from
Ubiquitome, a New Zealand company.
On-port testing meant we were able to slow the spread
of infection on port, because people were able to isolate
before spreading the illness to colleagues. This meant we
were able to keep port services operating throughout the
waves of Covid in the community.
On-port testing was an added layer of assurance to
minimise the potential spread of Covid on port, and did
not replace official public health testing.
“Our people have displayed vigilance
with regards to Covid prevention and
containment ... this is a testament to
our team’s determination and can-do
attitude that is at the heart of the
Napier Port culture.”
Todd Dawson, CEO
OUR COVID RESPONSE
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Our port whānau are what makes Napier Port tick. We couldn’t
do what we do without the customer-focused, whole-of-port
approach our people bring to their work every day.
KŌRERO MAI –
EMPLOYEE ENGAGEMENT SURVEY
In 2022 we again gave our employees the opportunity to let us know how they
feel about working at Napier Port. CultureAmp, an independent employee-
experience platform, ran an anonymous employee engagement survey designed
to help us understand what we’re doing well, and how we can improve.
This is the second year that we have surveyed our workforce using the
CultureAmp platform, so we were able to compare 2022 results with results
from last year’s survey.
What came out on top? It’s a boost to hear that 96 per cent of survey
respondents consider ‘the work we do at Napier Port is important’.
This is consistent with 2021’s survey results.
Survey participation increased from 71 per cent to 73 per cent of our workforce,
especially pleasing as our workforce has also increased in size since the last
survey. This high participation rate gives us confidence to draw conclusions
from the survey data.
Our workforce overall engagement rate remained high at 74 per cent (2021,
77 per cent), a strong result given that CultureAmp reported an overall average
decline in engagement of 8 percentage points for New Zealand companies
as a result of a challenging year due in part to Covid pressures.
DIVERSITY AND INCLUSION
Diversity and inclusion is an important part of our Culture of Care. When our
team better reflects the diversity of our community, our business thrives.
Our recruitment initiatives aimed to broaden the number and range of applicants
applying for roles throughout the business. Container Operations team
members took part in a recruitment campaign showcasing what they do on port,
and linking the work they do to our purpose of connecting our region to the
world. The campaign was effective, with applications for heavy plant operator
roles increasing ten-fold.
We also took part in the Graeme Dingle Foundation careers days, where
high-school students had the opportunity to learn about careers at Napier Port,
and worked with local iwi and business groups to let them know about
recruitment opportunities.
As part of our good employer initiatives, where practical, we offer flexible working
arrangements to provide a work environment that meets the needs of individual
team members. This positively contributes to employee retention, and making
Napier Port a desirable place to work.
This year we also began a new programme of work with Container Operations
team leaders, focusing on recruitment practices and inclusive work behaviours.
Workshops were held at the local Waiohiki Marae.
Pleasingly, the number of female leaders within our Container Operations team
has increased from 9 per cent to 20 per cent during the year.
PEOPLE AND CULTURE
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EMPLOYEE
EXCELLENCE AWARDS
This year we started the annual Napier Port Employee
Excellence Awards, inviting employees to nominate people
in our business who go above and beyond. The award
categories are:
• Inspirational colleague
• Leader of the year
• Unsung hero
• Rising star
• Health, safety and wellbeing
• People’s choice
• Team of the year
The judging panel was made up of people from right across
the business, and the Senior Management Team were not
eligible to be nominated for the awards. The winners of this
year’s awards will become next year’s judging panel.
The awards programme was very well received, with over
100 nominations submitted from throughout the business.
LEADERSHIP DEVELOPMENT
This year we have continued to promote team members
into leadership positions, as well as recruiting outside our
business to bring in new skills and experience.
Five new front-line leadership roles were created this
year in our Container Operations team. We also added a
fifth shipside operations team, creating further leadership
opportunities for operations people.
We continue to invest in upskilling our managers, and
this year held refresher coaching and feedback skills
workshops for leaders and emerging leaders.
360 DEGREE FEEDBACK
This year we introduced a 360 degree feedback
leadership development process for our Senior
Management Team and other managers. 360 degree
feedback gives the recipient the opportunity to receive
development feedback from their peers, managers,
reporting employees and others they work with
across the business. Feedback focuses on leadership
skills and attributes, and identifies strengths and areas
for development.
TE AO MĀORI
Te Kāhui o Te Herenga Ahuriri (the Napier Port Kāhui)
is a group of people committed to promoting Te Ao
Māori throughout our business. Led by Pou Tikanga
Te Kaha Hawaikirangi, the Kāhui has a strong, committed
membership and drives Te Ao Māori and tikanga
at Napier Port.
Kāhui members were deeply involved with the launch of
Te Whiti wharf, particularly in selecting the wharf’s name,
and participating in the dawn karakia and the official opening
ceremony. Other Te Ao Māori initiaitives this year include:
• Ongoing development of the Marine Cultural Health
Programe, a marine monitoring framework that balances
Western science with a Māori worldview
• Commissioning and installation of tukutuku panels
• Te reo lessons offered throughout our business for
interested employees
• Celebration of Te Wiki o Te Reo Māori (Māori language
week), with te reo calendars, te reo labelling in break
rooms, and posters of karakia in meeting rooms
• Matariki celebrations for port whānau, learning about
Matariki in the Ātea A Rangi Educational Trust’s
stardome at the Waitangi Regional Park.
We work closely with local iwi and hapū on projects
benefitting the local marine environment, and value their
important perspective.
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TUKUTUKU PANELS
A NEW TAONGA
This year we commissioned three tukutuku panels from local
artist and kuia Te Muri Whaanga. Tukutuku are a customary
Māori artform that form part of the traditional walls of a marae.
Tukutuku exist as a contemporary artform too, and weavers
often experiment with different materials and designs.
Our three tukutuku represent Tangaroa, Moremore
(son of Pānia) and Te Herenga Waka o Ahuriri.
The designs of each tukutuku are rich in meaning, and tell
the stories of the Ahuriri region and our connection to it.
EMPLOYEE RECOGNITION
SCHEME
In 2022 our employee recognition scheme was based on
six targets linking employee actions to business outcomes.
The measures covered financial targets, health and safety
assurance activities, completion of Te Whiti construction
and operations milestones, customer survey results and
sustainability actions.
Sustainability initiatives were a new addition to the
employee recognition scheme this year. Each employee
was tasked with taking part in an activity supporting
Napier Port’s sustainability strategy.
OUR WORKFORCE
As at 30 September 2022
341
permanent employees
(2021: 298)
17
%

of all employees are female
(2021: 17%)
83
%

of all employees are male
(2021: 83%)
33
%

of employees are aged under 40 years
(2021: 34%)
44
people have worked at the port
for more than 20 years (2021: 39)
“I would like to acknowledge our whole
Port team for the amazing job they
do. We would not be here without
the incredible collaboration between
our teams – whether it’s operations,
finance, fleet services, infrastructure,
or health and safety, every team
and every person plays a part.”
Todd Dawson, CEO
WORK WITH US
AND CONNECT
HAWKE’S BAY
TO THE WORLD
Sustainability is defined broadly, and includes the
wellbeing of people and the environment, partnering
with others and the community, and sustainable business
growth and prosperity for our region.
Our people took up the challenge, and got involved in
a wide range of activities, including tree planting, beach
clean-ups, energy-saving initiatives, being a health and
safety rep or fatigue mentor, kororā sanctuary volunteering,
volunteering in the community, Te Ao Māori promotion
including te reo lessons and Matariki celebrations, and
plenty more. We are delighted that 99 per cent of our
team took part in a sustainability initiative this year.
This year, employees (excluding the senior management
team) will receive a payment of $1,471.20 (pro rata).
Recruitment campaign for Container Operations team members.
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WHĀNAU DAY
The completion of Te Whiti’s construction was the perfect
opportunity to hold a day for our employees to bring their families
on port to view the new wharf before it opened for business.
It was a spectacular day, with over 900 people making the most
of the opportunity to walk on Te Whiti wharf, an operational area
which is normally off limits. There was lots to see and do, and we
made the most of the chance to fish from the new wharf, climb the
cranes and heavy plant, tour the penguin sanctuary, ride a train
along the new wharf, enjoy the tug ballets and live music,
and of course refuel at the food court.
Whānau Day 2022 was a relaxed, welcoming event, and the crisp,
clear Hawke’s Bay winter’s day was the icing on the cake.
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As a business that plays a key role in our region, we strive to be an effective
and engaged part of our local and regional community. Part of that relationship
means being a good neighbour, supporting our community and helping them
to better understand Napier Port.
This links with the People – Manaakitanga pillar
of our Sustainability Strategy, which is about safety,
well-being/hauora and development of our people
and our community.
COMMUNITY ENGAGEMENT
RESEARCH
This year we sought to better understand our reputation
and standing in the community we operate in. This is
important because community support effectively grants
us our social licence to operate, as we work to keep our
region connected to the world.
We engaged market research firm Research First to
survey and interview a range of stakeholders, including
community members, about their perception and
understanding of Napier Port and our business. Following
the general research, we followed up some respondents
with in-depth interviews. In total, 342 respondents were
surveyed, a mix of local neighbours, residents from Napier,
and residents from throughout Hawke’s Bay.
The research showed 99 per cent of respondents felt that
Napier Port is of key importance to the region. The port
is seen as integral to the region’s prosperity, bringing in
freight and tourists, leading to jobs and economic benefits.
We also learned that our environmental work and local
and regional advocacy efforts are not as well understood
by our community as we might like, with only half of the
survey respondents saying that they thought we worked
hard to promote environmental sustainability.
COMMUNITY CONSULTATION
IWI RELATIONSHIPS
We feel privileged to work closely with mana whenua on
a range of projects, led at Napier Port by our Pou Tikanga.
This year, we have continued to work with the Mana
Whenua Steering Komiti to implement a monitoring
framework and plan for the Marine Cultural Health
Programme. The Marine Cultural Health Programme
is New Zealand’s first marine monitoring programme
to approach marine health through a Te Ao Māori worldview.
Ngāti Kahungunu kaumatua played a key role in the
opening of Te Whiti, starting the day with a moving dawn
karakia, acknowledging our connection to each other
and to the world around us.
COMMUNITY RELATIONS
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WHAKATŪ COMMUNITY CONSULTATION
Our Whakatū inland port development project has
reverted back to its original timeframe of 5-10 years
in the future, but we are maintaining our communication
channels with local mana whenua and community group
E Tu Whakatū. We hosted representatives on port during
the year, sharing updates and environmental learning.
We also continued our stewardship of the land in
Whakatū, with a native-tree planting day along the
stream bank to improve water quality.
NOISE MITIGATION
Keeping our port’s operational noise to a minimum is
important to us and to our neighbours. Our Noise Liaison
Committee, comprising people from Napier Port, Napier
City Council and local residents, meets regularly to
discuss concerns and solutions.
We try to reduce noise from our operations wherever
possible, including positioning of containers to buffer sound
and installing mufflers on tugs, and we encourage shipping
lines to reduce noise from vessels calling at Napier Port.
Noise levels emitted from Napier Port are regularly
measured by external consultants, and are below the
limits imposed by the Napier City Council District
Plan. Nevertheless, we have voluntarily put a multi-year
programme of noise-mitigation actions in place, including
installing double-glazing and landscaping solutions
for the most affected residents.
COFFEE IN THE GULLY
In October we met with residents living near the port to
answer questions about port operations, noise mitigation
and Te Whiti construction. Port people including our
chief executive and senior management team members
attended the drop-in session, sharing a coffee and a chat
with members of our community.
We intend to hold these sessions regularly – we value
having strong communication channels with nearby
residents, to hear and address their concerns.
BUSINESS ASSOCIATIONS
Taking part in local business advocacy groups keeps us
connected to issues affecting the local business ecosystem.
We have Napier Port representatives involved with a large
number of local, regional and national interest groups,
including the Hawke’s Bay Chamber of Commerce,
ExportNZ Hawke’s Bay, regional transport committes and
MBIE’s Hawke’s Bay Regional Skills Leadership Group.
Involvement in business associations allows us to
share Napier Port’s news and to advocate for business
and community interests.
“We committed to delivering against
not only our financial goals but the
social, environmental and governance
objectives we share with
our community.”
Alasdair MacLeod, Chair
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Our sponsorships this year included:
CAPE SANCTUARY
Cape Sanctuary is a wildlife restoration project
based at Ocean Beach in Hawke’s Bay, and follows a
sustainable ‘open’ conservation model, sharing what
it learns about protecting New Zealand’s endangered
species. Sponsoring Cape Sanctuary is a tangible way
to demonstrate our commitment to sustainability, an
underlying foundation of our business strategy.
Cape Sanctuary has been active for 16 years, and
has established a number of at-risk species in the
predator-free sanctuary, including land birds, reptiles and
invertebrates. It is currently implementing a 10-year plan to
establish colonies of endangered seabirds and shorebirds
to the Cape Kidnapper’s peninsula, with the current tasks
including construction of more predator-proof fences,
digging in artificial burrow sites and preparing permits
ready for translocations in December 2022 and April 2023.
Napier Port employees have the opportunity to volunteer
at Cape Sanctuary, and a number of our people took part
in planting days as part of their sustainability action plan.
This year we reviewed our sponsorship programme, with a focus on aligning
it with our sustainability strategy. This approach sees us partnering with
and supporting organisations that are driving sustainable initiatives
and progress across our region, our communities and our people.
Our sponsorships now closely align to at least one of the four pillars
of our Sustainability Strategy:
PEOPLE | MANAAKITANGA
We are focused on the safety, well-being/
hauora and development of our people
and our community.
PLANET | KAITIAKITANGA
We are focused on protecting/tiaki
and enhancing the environment/taiao
in which we operate.
PROSPERITY | ŌHANGA ORA
We are focused on sustainable business
growth and supporting the prosperity
of our region.
PARTNERSHIPS | RANGAŪ
We are focused on authentic partnership
with our community, stakeholders
and mana whenua hapū.
SPONSORSHIP
“Being a good neighbour
and supporting local organisations
and communities is important to us.
By sharing our time and resources
with others, we help grow and nurture
the community we are a part of.”
Napier Port Sustainability Strategy
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NAPIER PORT OCEAN SWIM
This longstanding Napier community event takes place
in Ahuriri’s sheltered waters, and the 2022 saw another
fine event despite some uncertainty due to Covid.
In association with Surf Life Saving New Zealand,
Sport Hawke’s Bay and Triathlon Hawke’s Bay, the
Napier Port Ocean Swim features events for all ages
and abilities, set against the backdrop of the port.
NAPIER PORT FAMILY FISHING CLASSIC
The Napier Port Family Fishing Classic is a much-
anticipated event on the local fishing calendar.
Held each year in early March and organised by the
Hawke’s Bay Sports Fishing Club, the event is well
supported by the local fishing community, including
many Napier Port people and their families.
NAPIER PORT MULTISPORT YOUTH SQUAD
The Napier Port Multisport Youth Squad is a new initiative
from Triathlon Hawke’s Bay, offering a range of regular
multisport training and events for children aged 7 to 19.
Designed for complete beginners through to experienced
athletes, the multisport youth squad offers Hawke’s Bay’s
young people the opportunity to be part of a multisport
club, with a pathway to improve their swimming, cycling
and running times with regular coaching.
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ĀTEA A RANGI EDUCATIONAL TRUST –
WAKA EDUCATIONAL PROGRAMMES
This long-term sponsorship supports the waka taurua
sailing and navigational educational experiences offered
by the Ātea a Rangi Educational Trust. We also support
the Trust’s care for Te Matau a Māui – a waka hourua
(traditional double-hulled voyaging waka) with drydocking
and maintenance activities.
NAPIER PORT HAWKE’S BAY PRIMARY
SECTOR AWARDS
Hawke’s Bay’s primary sector is the cornerstone of our
local economy. At Napier Port, we’re proud to play our
part in connecting these primary producers to their
global customers.
The Napier Port Hawke’s Bay Primary Sector Awards
is an annual event that celebrates our local producers.
As principal sponsor, we celebrate the outstanding
commitment of our farmers and foresters, and the rural
professionals who support them.
HAWKE’S BAY FUTURE FARMING
CHARITABLE TRUST
The Hawke’s Bay Future Farming Charitable Trust is a
new sponsorship for Napier Port this year. The trust was
created in 2019 to shine a light on our region’s existing
and emerging farming expertise, and create a local hub
of knowledge for farmers now and in the future. It is an
independent voice to champion sustainable agriculture
in Hawke’s Bay, and works to ensure the health of the
region’s soil and water, communities and farmers.
EXPORT NEW ZEALAND ASB HAWKE’S BAY
EXPORT AWARDS
The Export Awards celebrate businesses from the
Hawke’s Bay, Gisborne and Tairawhiti regions that
are making a name for themselves on the world stage.
Napier Port sponsors the ‘Unsung Hero’ award, which
gives exporters the opportunity to recognise a person
in their business who makes a huge contribution
to their company’s export success.
BIG BROTHERS BIG SISTERS HAWKE’S BAY
Big Brothers Big Sisters is a community-based youth-
mentoring programme, supporting youth in need of the
positive adult relationships that are crucial to childhood
development. Young people are matched with an adult
mentor who can take a regular interest in their lives,
encouraging them to achieve their potential. Napier Port
is pleased to sponsor two mentor-mentee matches.
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COMMUNITY PROJECTS
Community projects are smaller, short-term initiatives or grass-roots projects.
Some of these projects over the past year included:
SALVATION ARMY CHRISTMAS BOXES
FOR CHILDREN APPEAL
The Napier Port team filled 300 special shoeboxes
with presents for local children.
CRAGGY RANGE – A CHILDREN’S CHRISTMAS
We joined with other local Hawke’s Bay businesses to fill
over 5000 Santa sacks of presents for underprivileged
children in our community.
AHURIRI SHUTTLE RACE
We supported this inaugural local waka ama event
that took place on port beach alongside Napier Port.
NAPIER PORT EMPLOYEE INITIATIVES
We support a range of community initiatives proposed by
members of the Napier Port team. Contributions to sports
teams and events have recently included the Westshore
Napier Port surf boat team, an employee’s Cook Strait
ocean swimming attempt, sponsorship of an employee’s
speedway team and support of the live steamers club that
operates the Keirunga Park Railway in Havelock North.
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OUR SUSTAINABILITY
EVOLVES
2022 has been another landmark year for sustainability
at Napier Port. Of the 100+ sustainability actions mapped out
in our 10+ year strategy in 2021, 54 are underway, and where
appropriate complete, and a further 28 are in planning.
Our approach to sustainability is embedding it within the business so it is just
part of ‘what we do’. By focusing our efforts on those issues that we are in the
best position to influence and improve, we believe we can make a measurable,
meaningful and enduring contribution to sustainability.
In terms of reporting, we have made significant progress in our approach to
emissions reduction planning and improving how we measure emissions. We have:
• developed an Emissions Reduction Strategy, to provide a framework for
emissions reduction pathways going forward,
• widened the scope of our ‘Scope 3’ emissions reporting, and
• our emissions inventory was audited externally for the first time
by Toitū Envirocare.
“As a company that plays an important part
in regional growth and prosperity, we embrace
the opportunity to take a leading role in achieving
a better and more sustainable future for all.”
Alasdair MacLeod, Chair
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SECTION 1: DECARBONISING
NAPIER PORT
Napier Port is committed to a goal of net zero emission by
2050 and our sustainability strategy includes an objective
for the business to develop and adopt an emissions
reduction strategy to support this goal.
As we work towards reducing emissions, it is critical the
right environmental and investment decisions are made.
Port operations are capital intensive with container-
handling equipment, marine vessels and truck fleet
all having a natural, long-term life cycle. There is still
uncertainty regarding emerging technology, cost and the
supply and distribution of green electricity, hydrogen and
charging networks.
While there are currently a number of viable options
for moving to low emission technology, these tend to
be for lower-power and lower-range equipment where
the technology is well advanced and requires moderate
electrical infrastructure, not for Napier Port’s major
emission sources such as cranes, container handlers,
marine fleet and generators.
With the goal of net zero emissions by 2050 front of mind,
we believe right now we can make a meaningful difference
to emissions by implementing the following goals:
1. Focus on the reduction of diesel consumption
• Diesel usage is the primary source of our current
emissions, with forklifts, marine fleet, generators,
cranes and trucks being the top emission sources.
2. Investment in low emissions technology aligned to:
• Our Asset Renewal Programme
• Any future Napier Port container terminal
transformation programme
• Availability of emerging technology
3. Grow our electrical infrastructure through potential
electrical capacity upgrades, and
4. Establish a decision-making framework that:
• Requires mandatory consideration of low emissions
technologies for any investment or business case
• Explores the possibility of establishing an internal
price of carbon (shadow price) to be used in
investment or business development decisions,
including the procurement of electricity
This strategy framework will continue to be further
developed during the coming years and will involve further
investigations into the viability of alternative fuel sources
and the range of new low emissions technology.
SECTION 2: ADDRESSING
CLIMATE CHANGE
This year, we published our second Climate Change
Related Disclosure Report, providing an understanding
of the potential financial implications of climate change
on the business.
In 2021, we outlined our climate-related risks and
opportunities over a 50-year timeframe, describing
our processes for identifying, assessing and managing
climate-related risks, and considering how those risks are
integrated into our overall risk management. To ensure
they reflect material changes, we are committed to
reviewing these risks at least annually.
A number of de-carbonisation initiatives
are currently underway, supporting
the reduction of our carbon footprint:
3
electric vehicles and
2 hybrid vehicles introduced
2
new Eco Reachstackers
have been ordered
14
LED floodlight towers now installed
(up from 9 in FY21)
At least 50% air travel reduction, offsetting emissions
for domestic air travel
Investigating electrification/alternative fuels
of Napier Port’s tugs, cranes and forklifts
Investigating options for hydrogen usage and generation.
The impacts identified as most material to Napier Port
in 2021 remain relevant in 2022: increase in sea level,
extreme rainfall events, erosion, drought, global shipping,
and government regulations to encourage a shift to a low-
carbon economy (resulting in higher fuel costs), a shift to
alternative fuels, and increased use of rail. Each of these
are discussed in detail in our Climate Related Disclosure
Report found at napierport.co.nz/investor-centre
For each of the risks identified, the likelihood and timeframe
has remained consistent with FY21, with the exception of
government regulation to encourage shift to a low carbon
economy, resulting in higher fuel costs. In this case, we
anticipate the likelihood being a moderate risk in the short
term and almost certain in the medium to long term, and the
timeframe moving from medium to short to medium term.
At this stage, we do not consider that the effects of
climate change materially change our overall strategy.
PROGRESS ON CLIMATE-RELATED METRICS
AND EMISSION REDUCTION TARGETS
Last year, we focused on defining our greenhouse gas
(GHG) inventory scope to reflect best practice, including
identifying a wider range of Scope 3 emissions.
Under the GHG Protocol, these emissions are classified
under the following categories:
Scope 1 – Direct GHG emissions occurring from sources
that are owned or controlled by the company.
Scope 2 – Indirect GHG emissions occurring from
the generation of purchased electricity, heat and steam
consumed by the company.
Scope 3 – emissions that occur as a consequence of
the company’s activities, but from sources not owned
or controlled by the company. These have been further
categorised using the Scope 3 standard categories:
• Purchased goods and services (category 1);
• Business travel (category 3);
• Employee commuting (category 3);
• Capital goods (category 4);
• Fuel and energy-related activities not included
in Scope 1 or 2 (category 4);
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• Waste generated in operations (category 4);
• Upstream transportation and distribution –
electricity (category 4).
Additional Scope 3 categories are not reported where
they are not relevant to our business.
This year, our emissions inventory was audited externally
for the first time by Toitū Envirocare. This certification
means we’ve measured and managed the operational
emissions of our organisation in accordance with
ISO 14064-1:2018 and the GHG Protocol.
This is a significant milestone in our emissions
reduction journey.
In 2022, our total carbon emissions were 9,744.4 tonnes
which was down from 10,284.3 tonnes in 2021. This is
shown in Figure 1 below.
Scope 1
Scope 2
Scope 3 (historical)
Scope 3 (new additions)
FIGURE 1: TOTAL CARBON EMISSIONS (tCO2e)
12,000
10,000
8,000
6,000
4,000
2,000
-
Scope 1.................7,154.8
Scope 2 ...............1,758.7
Scope 3 ...............830.9
FIGURE 3: TOTAL EMISSIONS BROKEN
DOWN BY SCOPE (tCO2e)
The decrease in total emissions correlates with a decrease
in annual cargo volumes during 2022. This has seen a
decrease in Scope 1 emissions to 7,154.8 tonnes from
8,627.3 tonnes in 2021 due to a decrease in fuel usage
for cranes, tugs, the pilot boat and diesel generators.
Scope 2 and 3 emissions increased. Our purchased
electricity (Scope 2) emissions increased to 1,758.7 tonnes
from 1,430.0 tonnes in 2021. This was contributed to by
the regulator materially increasing the electricity emission
Scope 2 factor for 2022 (an 18% increase).
Scope 3 emissions were expected to increase given the
scope was widened for 2022 to capture emissions relating
to freight and employee commuting. As a result, Scope 3
emissions increased from 227.0 (2021 adjusted) tonnes
to 830.9 tonnes when compared to the prior year.
* 2021 Scope 3 emissions relating to waste –
landfill with gas recovery has been increased by 63.
FIGURE 2: CARBON EMISSIONS tCO2e PER TONNE
0.002
0.0015
0.001
0.0005
-
FIGURE 4: SCOPE 1 EMISSIONS BROKEN DOWN
BY TOP EMITTERS (tCO2e)
2017
20182019
2020
2021*
2022
(certified)
2017
20182019
2020
2021*
2022
(certified)
Forklift .............2,945.6
Marine Fleet ...1,537.6
Crane ..............1,412.2
Stationary
Energy ............763.1
Light Vehicle ..496.3
However, our carbon emissions per tonne increased from
0.00173 to 0.00181 in 2021 as shown in Figure 2.
This is due to the impact of the two new Scope 3 emissions
categories in 2022. On a like for like basis, with these
two new Scope 3 emission sources excluded, our carbon
emissions per tonne decreased by 0.7%.
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SECTION 3: PROGRESS
ON 2021–2023 PRIORITY
SUSTAINABILITY ACTIONS
In 2021 we launched our Sustainability Strategy and
Action Plan structured around the four pillars of people,
planet, prosperity and partnerships. Workstreams have
been created within each of these themes, with more
than 100 actions spanning a 10+ year horizon.
Eighteen of these were given top priority status
to progress during 2021–23.
While there are 18 top priorities in this first tranche,
progress on many of the Medium (3–10 years) and Long
Term (10+ years) workstreams have occurred in parallel,
given the interconnected nature of the initiatives.
In this report, we will focus on progress made on the
18 priority workstreams this year, noting that from 2023,
the medium and long-term work streams move forward in
their timeframes. Those workstreams can be found in our
Sustainability Strategy and Action Plan on our website at:
napierport.co.nz/wp-content/uploads/2021/08/Napier-
Port-Sustainability-Strategy-and-Action-Plan.pdf
WORKSTREAM UPDATES
To measure progress in each of our initiatives we have
implemented a scorecard.
= completed
= started and/or ongoing
= in planning
= not yet started / on hold
Progress for each initiative is influenced by a range
of factors including prioritisation, scope of initiative
and resource required to undertake, and time frames
for implementation.
73 per cent of Napier Port’s total 2022 emissions
related to Scope 1 emissions. This is due to our large
fleet of diesel-powered mobile plant and marine assets.
SCOPE 2 EMISSIONS (PURCHASED ELECTRICITY)
18% of Napier Port’s total FY22 emissions related to
Scope 2 emissions. The top emitters within this category
are powering refrigerated ('reefer') containers, operational
wharf and street lighting towers, and tug shore power
and related infrastructure.
SCOPE 3 EMISSIONS
9 per cent of Napier Port’s total FY22 emissions related
to Scope 3 emissions.
Breaking down the Scope 3 emissions data further,
59 per cent of total Scope 3 emissions are attributable
to the two new scope categories Freight (33 per cent)
and Employee commuting (26 per cent).
FIGURE 5: SCOPE 3 EMISSIONS BROKEN DOWN
BY TOP EMITTERS (TCO2e)
* tkm = tonnes per kilometre
* T&D = transmission and distribution
Waste – landfill with gas recovery .....................122.7
TEU Rail Freight – diesel tkm* (new) ................2 7 7. 6
Electricity T&D* losses kWh ................................162.4
Employee commuting (new) ................................216.7
Other, including air travel/water supply m
3
......51.5
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PROGRESS ON 2021–2023 PRIORITY SUSTAINABILITY ACTIONS
UNSDG2021 2022 PAGE REFERENCE IN THIS
ANNUAL REPORT; NOTES
PEOPLE: PRIORITY ACTIONS 2021–23
SAFE, SECURE & WELL
Support vitality, health, safety and security of our people and our community
Develop a proactive Safety Culture Roadmap
to facilitate continuous improvement in health
and safety practices and behaviours.
We have completed our three-
year health and safety foundational
roadmap, and commenced a second
three-year health and safety maturity
roadmap. Page 32.
Continue to implement a safety management
system framework and aspire to external
certification such as ISO 45001.
We have completed implementaion
of our safety management system
and have achieved ISO 45001
certification. Page 32.
Implement an annual Safety and Wellbeing
calendar to support planned, ongoing and
repetitive focus on safety and well-being
focus areas.
We have implemented an annual
Safety and Wellbeing calendar.
Page 33.
EQUITY, DIVERSITY & INCLUSION
Attract and maintain a diverse workforce in an engaged and inclusive working environment
Develop an Equality, Diversity & Inclusion (EDI)
Roadmap – to build a workplace that embraces
diversity, values empathetic leadership, employs
modern work practices, and facilitates
cross-divisional learning.

Our EDI roadmap has been approved
and implementation is underway.
Page 33.
Foster flexible and alternative working
arrangements to provide a work environment
that enhances participation, performance
and EDI.
We offer flexible working arrangements
where possible to accommodate
employee needs. Page 37.
PLANET: PRIORITY ACTIONS 2021–23
HEALTHY REEFS & OCEANS
Understand and promote our local reefs and clean oceans
Establish an enduring Healthy Reefs & Oceans
Cultural Monitoring Programme –in partnership
with research institutions and Māori to enhance
and protect biodiversity, health and mauri (life
force) of Pania Reef and the ocean.
The Marine Cultural Health Programme
is established
marineculturalhealth.co.nz/
wp-content/uploads/2021/04/
MCHP-Launch-Report-Final.pdf
and marineculturalhealth.co.nz
and this year won the New Zealand
Planning Institute Rodney Davies
Project Award 2022 that recognises
innovation and creative excellence in
the undertaking and completion of a
physical work or development.
CLIMATE ACTION & ENERGY
Take action to reduce our carbon footprint and support our national zero emission future by 2050
Develop a ‘Whole of Port’ Climate Change
Risk Assessment – looking at among others
infrastructure resilience, trade forecasting,
land levels, weather conditions, emergency
preparedness and habitat modification.
Completed and forms the basis
of our Climate Change Related
Disclosure Report napierport.co.nz/
investor-centre
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PROSPERITY: PRIORITY ACTIONS 2021–23
ETHICAL & EVOLVING SUPPLY CHAINS
Support responsible practices in the local and global supply chains,
including transport networks and corridor protection
Articulate an Ethical Supply Chain Sustainability
Vision – defining our position regarding ethical
supply chain practices and developing a set of
performance criteria.
Board Sustainability Committee
undertook a deep dive session on
this and will assess a specific ethical
supply chain area annually.
Undertake a Sustainable and Ethical Supply
Chain Assessment – of our current business.
Identify areas of concern and subsequent
action plans.
Ceased methyl bromide fumigation
of logs on port from 1 January 2022,
alongside implementation of our
mobile log debarker.
STRATEGIC PLANNING & INVESTMENT
Optimise use of land, terminal, footprint, infrastructure assets
and support sustainability criteria-based assessment for projects
Create a Terminal Efficiency Roadmap to
optimise yard storage capacity and interface
with inbound and outbound cargo.
Work on terminal efficiency options
progressed alongside the construction
of 6W and is continuing into 2023;
reconfiguration of the log yard and
traffic management improvements
have been undertaken.
Progress an Inland Freight Hub Plan – to
reduce port congestion, and there by improving
the customer experience.
The Whakatū Inland Port project
reverted to the original 5+ year
timeframe from prioritised 1-2 years,
and remains open to bring forward
if a business case requires.
UNSDG2021 2022 PAGE REFERENCE IN THIS
ANNUAL REPORT; NOTES
Develop and adopt a Climate Change
Strategy – to support Napier Port’s goal of
zero net emissions by 2050. Review areas
such as transport, energy, land use, buildings,
infrastructure and education. Devise action
plans to support.
An initial emissions reduction strategy
has been developed. This is intended
to provide the necessary framework
for those charged with governance to
collectively agree the most effective
emissions reduction pathway for
Napier Port.
Establish Emissions Inventory and Tracking –
ongoing monitoring and reporting for emissions,
identifying reduction targets and actions.
Reporting emissions and contributing to the
Climate Leaders Coalition.
We defined our GHG inventory
to reflect best practice including
measuring a wider range of Scope 3
emissions. This expanded definition
of our GHG inventory is being used
to determine and report Napier Port’s
emissions from 2022, which will then
be used as the base year for future
comparative measurement. Emissions
this year were externally audited by
Toitū Envirocare.
Reporting emissions and contributing to the
Climate Leaders Coalition
Following our decision to not yet set
an interim emission reduction target,
we have placed our application
to CLC on hold.
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UNSDG2021 2022 PAGE REFERENCE IN THIS
ANNUAL REPORT; NOTES
PARTNERSHIPS: PRIORITY ACTIONS 2021–23
GOOD NEIGHBOUR
Improve the living environment for communities in and around the port managing nuisance, traffic and communication
Establish a ‘Good Neighbourhood Programme’
– to regularly engage with local communities
with a focus on improving local safety,
amenities and communication (including
community feedback).
A regular programme is underway and
ongoing including liaison committees,
drop in sessions, participation in
council, business and community
organisations; improved channels
for feedback including website, email,
phone and home visits. Page 43.
Establish a rolling programme of actions to
support the Good Neighbourhood Programme
– based on community feedback on such
matters as road and pedestrian safety, noise,
light and dust.
Undertook a community engagement
survey, including neighbours and wider
stakeholders, to establish a baseline
from which to develop a wider
neighbourhood programme. Page 42.
CULTURAL CONNECTIONS
Work collaboratively with Iwi Maori partners to engage, integrate cultural values and initiatives
Develop a Long-Term Cultural Strategy –
to strengthen our knowledge and understanding
of te reo and Te Ao Māori, through cultural
engagement initiatives, education and
integration of cultural values across social,
environmental and business aspects.
Our Te Ao Māori strategy has been
approved and is being implemented
throughout the business. Page 38.
Establish a Marine Cultural Health Programme
– to deliver learning to community and others
businesses on cultural marine health indicators
(based on mana whenua marine knowledge) to
enhance monitoring in the marine environment.
Refer to the Healthy Reefs & Oceans
action above. This workstream ensures
the work on local reefs and clean
oceans reflects mana whenua marine
knowledge and we share what we
learn. This year an agreement has
been signed with Ngāti Kahungunu
to undertake the monitoring of the
Marine Cultural Health Programme.
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BOARD OF DIRECTORS
ALASDAIR MACLEOD
Independent Director | HND (Civil), MBA, CMInstD
Chair
Alasdair joined the Napier Port Board in 2014 and was appointed Chair in December
2014. Originally a civil engineer, Alasdair has a broad range of experience across
the energy, infrastructure, technology and primary sectors. As a partner at Deloitte
for 12 years, Alasdair led the teams that developed New Zealand’s Aquaculture Strategy,
Horticulture Strategy and Red Meat Sector Strategy.
Alasdair is Chair of technology business Silverstripe, and independent Chair of Trade
Window Holdings. He is an independent member of the Board Appointments Committee
for IHC New Zealand, and a trustee of Big Brothers Big Sisters Hawke’s Bay. Alasdair is
the past Chair of the Hawke’s Bay chapter of ExportNZ (a division of BusinessNZ),
and was involved in authoring the Hawke’s Bay Regional Economic Strategy – Matariki.
BLAIR O’KEEFFE
Independent Director | BBS (Hons), MInstD
Board Chair designate and Chair of the Sustainability Committee
Blair was appointed as a director of Napier Port in June 2019. Blair is a Hawke’s Bay
based company director and board advisor, with governance experience in NZX-listed
companies, central and local government, and private entities. He is a former Port Chief
Executive, with more than 25 years of local and international senior executive experience,
including infrastructure, energy, property and transport.
He is currently a director of Unison Networks and Central Air Ambulance Rescue, and is
Chair of the Hawke’s Bay Rescue Helicopter Trust. He also operates a board/commercial
advisory business. He is a former director of NZX-listed Z Energy, and former Chair
of Crown Entity Maritime New Zealand.
STEPHEN MOIR
Independent Director
Chair of the Audit and Risk Management Committee
Stephen was appointed as a director of Napier Port in December 2016.
Stephen brings an extensive background in institutional banking and financial markets,
having held senior roles at Westpac Institutional Bank, Credit Suisse (Singapore)
and Citibank (Singapore, Thailand and Australia).
Stephen is a director of Cigna Life Insurance New Zealand and is the Chair of the Audit
Committee, a director of the Todd Family Office, and an advisor to the ASB Bank Investment
Committee. He was previously a director of the Guardians of New Zealand superannuation,
a non-executive director on the BNZ Board, and Chair of both BNZ Life Insurance and BNZ
Insurance Services, as well as the advisory board to the Victoria University Chair of Business
in Asia. Stephen was previously a member of the NZ Markets Disciplinary Tribunal.
DIANA PUKETAPU
Independent Director | FCA, CMInstD
Chair of the Remuneration and Nomination Committee
Diana joined the Napier Port Board in December 2017, and has a background in
commercial, iwi and sports governance. Diana is a director of Ngāti Porou Holding
Company, Tāmaki Redevelopment Company, Manawanui Support, New Zealand Olympic
Committee, New Zealand Cricket, DNA Designed Communications, and Trade Window
Holdings. She has previously served as a director of Auckland Council Investments,
World Masters Games 2017, and was formerly the Chief Financial Officer
of Ngāti Whātua Ōrākei Corporate.
Diana is a Fellow Chartered Accountant and a Chartered Member of the Institute of Directors.
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JOHN HARVEY
Independent Director | BCom, FCA, CFInstD
John joined the Napier Port Board in February 2019. John has a background in financial
services, including NZX listings, acquisitions, mergers and financial reporting, with over
35 years’ professional experience as a Chartered Accountant. He was a Partner
at PricewaterhouseCoopers for 23 years, including eight years as Managing Partner
at the Auckland office.
John is a Chartered Fellow of the Institute of Directors in New Zealand and is currently
a director of Heartland Bank and Kathmandu Holdings. He previously served on the
Board of Port Otago for nine years, and has been a director of Investore Property,
Stride Property Group, Ballance Agri-Nutrients and APN News and Media.
VINCENT TREMAINE AM
Independent Director | BBus, FCPA, FAICD, GAIST (Adv.)
Chair of the Health and Safety Committee
Vincent joined the Napier Port Board in February 2019. He has broad experience in the
port sector, having served for 16 years as CEO of Flinders Ports Holdings, which owns
seven South Australian ports, the Adelaide Container Terminal and Flinders Logistics.
Vincent is currently Chair of Riverland Water Holdings, Chair of SouthernLaunch.Space,
and a director of GeelongPort and Green Industries SA. He has served as Chair
of Ports Australia and the South Australian Chamber of Commerce and Industry,
and as a director of Australia’s National Heavy Vehicle Regulator. Vincent also worked
for Toll Ports and Resources, managing the ports of Geelong and Hastings in Victoria.
In 2020, Vincent was awarded Membership of the Order of Australia (AM) for ‘significant
service to shipping infrastructure and freight transport’.
HON RICK BARKER
Director | MPP
Rick joined the Napier Port Board in June 2019. Rick serves as the Chair of the
Hawke's Bay Regional Council, and is a director of the Hawke's Bay Regional
Investment Company. He was elected as a Councillor for Hastings in 2013, and was
previously a Member of Parliament for 18 years, serving six years as a Cabinet Minister,
a term as Senior Government Whip, and also elected as Assistant Speaker of the
House during his tenure.
Rick provides independent consulting services on a range of issues. Rick completed
a Master's Degree in Public Policy in 2012.
DAN DRUZIANIC
Director | BCom (Ag), PG Dip Com, FCA
Dan was appointed as a director of Napier Port in August 2022. Dan is a chartered
accountant, business advisor and professional director with broad experience across
business sectors including agribusiness, health, infrastructure, property and investment.
He is Chair of the Hawke’s Bay Regional Investment Company, and sits on the Boards
of Unison Networks and Bostock New Zealand and is a Trustee of the Hawke’s Bay
Community Fitness Centre Trust.
Dan is a Fellow of the Institutes of Chartered Accountants of Australia and New Zealand,
and a member of the New Zealand Institute of Directors.
KYLIE CLEGG
Independent Director | LLB, BCom, MInstD
Kylie was appointed as a director of Napier Port in August 2022 and has a corporate
legal background across a range of industries. Kylie is currently a director on Auckland
Transport and a member of the Waitematā Health New Zealand Capital Advisory Group.
Her previous governance roles include Waitematā District Health Board,
Counties Manukau District Health Board, Sport New Zealand and High Performance
Sport New Zealand.
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SENIOR MANAGEMENT
TODD DAWSON
Chief Executive | BSc, PGDipBus, MInstD, PMP, CMILT
Todd joined Napier Port as the Chief Executive in January 2018, bringing broad
commercial experience from across a range of industries and deep expertise across the
supply chain, transport and logistics sectors. Prior to Napier Port, Todd led strategic
partnerships and new ventures at Kotahi Logistics, working on the introduction of bigger
ships to New Zealand and the establishment of intermodal freight hubs.
He has over 25 years’ experience and has previously held senior roles at IBM NZ,
Toll New Zealand, Sainsbury’s Supermarkets (UK) and Mainfreight.
Todd holds a Bachelor of Science and a Postgraduate Diploma of Business in Operations
Management from the University of Auckland. He is a member of the Institute of Directors
in New Zealand and is Chair of the Manawatu Inland Port, Napier Port’s intermodal joint
venture with Halls Transport and Ports of Auckland.
KRISTEN LIE
Chief Financial Officer | BBS, CA, CFA, CMInstD
Kristen joined Napier Port as Chief Financial Officer in September 2015. Kristen has more
than 25 years’ financial experience and strong commercial and strategic planning skills.
Kristen returned to Hawke’s Bay after some 18 years working across London, Moscow
and Oslo. His previous roles have been with the London-based office of listed shopping
centre group Westfield, London-based property investment company Grosvenor, as well
as Ernst & Young and PricewaterhouseCoopers.
Kristen holds a Bachelor of Business Studies from Massey University and is a Chartered
Accountant, a Chartered Financial Analyst, and a Chartered Member of the Institute of
Directors in New Zealand.
DAVID KRIEL
General Manager – Commercial | M.Prof.Studs. Transport Management (Dist), FCILT
David joined Napier Port as General Manager – Commercial in 2018. David has an
extensive background in transport and logistics and worked with Lodestar and Oji Fibre
Solutions from 2005 to 2018.
David is a Fellow of the Chartered Institute of Logistics and Transport. He is a member
of the Eastern Asian Society for Transport Studies and the Humanitarian Logistics
Association. David sits on the board of the New Zealand Cruise Association as well
as the advisory board of ExportNZ Hawke’s Bay.
MICHEL DE VOS
General Manager – Assets and Infrastructure | BEng (Nav Arc), GDip
(Maritime and Logistics Management)
Michel joined Napier Port in April 2014, and is responsible for the procurement,
maintenance, planning and construction of port infrastructure and assets, as well
as overseeing our environmental and sustainability management programmes.
He was Project Director for the construction of Te Whiti /6 Wharf.
Michel has a background in the maritime industry, having held roles with Queensland’s
Gladstone Ports Corporation and Fremantle Ports in Perth, as well as working with
multinational dredging and maritime construction firms on projects throughout Asia.
He represents New Zealand members on the board of PIANC, the World Association
for Waterborne Transport Infrastructure.
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VIV BULL
General Manager – People and Culture | MSc (Hons)
Viv joined Napier Port in 2011 and leads our human resources, health and safety,
and culture functions. Her career has included senior management and consultancy
roles with the Department of Corrections, KPMG and the State Services Commission.
Viv is an independent member of the audit and risk committee of the Heretaunga Tamatea
Settlement Trust. She holds a Master of Science in Organisational Psychology (Hons)
from the University of Canterbury.
ANDREA MANLEY
General Manager – Strategy and Supply Chain | BSc/BCom, MZIMR I & II, DipBA
Andrea joined Napier Port in 2019. She is responsible for leading strategic planning and
performance, identifying growth opportunities, implementing new strategic initiatives,
developing digital solutions and leading Napier Port’s supply-chain services. Andrea has
previously worked with Kotahi Logistics, Goodman Fielder, Alcatel-Lucent, Brightstar,
Vodafone and IBM.
Andrea holds a Bachelor of Science in Statistics, Management Science and Operations
Research from the University of Auckland and a Diploma in Business Administration from
Henley Management College. She is a Non-Executive Director of Pacificomm, a board
member for Hawke’s Bay Chamber of Commerce, a member of the University of Auckland
Strategic Supply Chain Programme Advisory Group and a founding member of the
Auckland Women in Supply Chain Network.
ADAM HARVEY
General Manager – Marine and Cargo Operations | BA, BCom
Adam joined Napier Port in 2010 and is responsible for general cargo, access and
shipping operations. He has a background in human resources and prior to his current
position, was Napier Port’s Container Terminal Manager.
Adam holds a Bachelor of Commerce in Management and Economics and a Bachelor of
Arts in Geography and Psychology, both from the University of Otago. He is the immediate
past Chairperson of the Port Industry Association.
JO-ANN YOUNG
Corporate Affairs Manager | BA (Hons), MA
Jo-Ann leads the corporate affairs function at Napier Port covering communications,
stakeholder and investor relations, and community engagement. She joined Napier Port
in 2020 as Communications Manager and assumed the newly created Corporate Affairs
Manager role in June 2022. Jo-Ann brings experience in communications, marketing,
media, and public affairs across infrastructure, politics, health, education and FMCG
sectors, spanning New Zealand, Australia, Turkey, South Korea and the United Kingdom.
Jo-Ann holds a Master of Arts in Political Communication from Victoria University.
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FINANCIAL STATEMENTS
CORPORATE GOVERNANCE STATEMENT 62
OTHER DISCLOSURES 71
CONSOLIDATED INCOME STATEMENT 77
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME 78
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY 79
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION 80
CONSOLIDATED STATEMENT OF CASH FLOWS 81
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS 83
INDEPENDENT AUDITOR'S REPORT 102
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NAPIER PORT HOLDINGS LIMITED
CORPORATE
GOVERNANCE STATEMENT
The Board of Napier Port Holdings Limited (the Company)
and its subsidiaries (collectively the Group) are responsible
for the corporate governance of the Group. Corporate
governance describes how a company looks after the
interests of its shareholders and other stakeholders.
The Board is committed to maintaining best practice
governance policies and behaviours. This Corporate
Governance Statement sets out the corporate governance
policies, practices and processes of the Group as at
15 November 2022 and has been approved by the Board.
The Group’s policies, practices and processes are
reviewed against the best practice principles included
in the NZX Corporate Governance Code (NZX Code).
The Board’s view is that the Group’s corporate
governance policies, practices and processes
generally follow the recommendations of the NZX
Code. This Corporate Governance Statement includes
disclosure of the extent to which the Group has followed
each of the recommendations in the NZX Code.
Further information about the Group’s corporate
governance framework is available on the Group’s
Investor Centre (www.napierport.co.nz).
PRINCIPLE 1 –
CODE OF ETHICAL BEHAVIOUR
“Directors should set high standards of ethical behaviour,
model this behaviour and hold management accountable for
these standards being followed throughout the organisation.”
CODE OF ETHICS
Recommendation 1.1: The Board should document
minimum standards of ethical behaviour to which the
issuer’s directors and employees are expected to adhere
(a code of ethics).
The Board and management are committed to ensuring
the Group adheres to best practice governance principles
and maintains the highest ethical standards. The Group’s
code of ethics sets out the manner in which directors and
employees should conduct themselves. The code of ethics
incorporates the requirements set out in recommendation
1.1 of the Code and forms part of the induction process
for all new employees.
The Board recognises good governance is not merely
a matter of achieving legislative compliance but ensuring
that exemplary standards and behaviour are maintained.
This involves the establishment and maintenance of a
culture at a Board and senior management level and
throughout the Group to ensure that directors and
employees deal fairly with others, with transparency,
and protect the interests of shareholders and look after
the rights of stakeholders.
SECURITIES (SHARES AND BONDS
TRADING) POLICY
Recommendation 1.2: An issuer should have a financial
product(s) dealing policy which applies to employees
and directors.
The Group has adopted a Securities (Shares and Bonds
Trading) Policy which sets out the responsibilities of
all directors, officers, employees, personal services
contractors, and secondees of Napier Port Holdings
Limited and its subsidiaries for trading in the Company’s
securities within a listed company environment. The
Securities (Shares and Bonds Trading) Policy is available
on the Group’s website. This policy is separate from, and
in addition to, the legal prohibitions on insider trading
in New Zealand, and does not replace legal obligations.
Insider trading is prohibited at all times. Directors and
employees who possess material information must not
trade in securities, advise or encourage another person
to trade or hold the Company’s securities, advise or
encourage a person to advise or encourage another
person to trade or hold the Company’s securities, or
directly or indirectly disclose or pass on the material
information to anyone else, knowing that the other person
will or is likely to use that information to trade in the
Company’s securities.
Restricted persons including the Directors, Chief
Executive Officer, Senior Management Team, Trusts
and Companies controlled by these persons, and anyone
else notified by the Chief Financial Officer, have additional
trading restrictions. Restricted persons are prohibited
from trading in securities during specific “black-out”
periods, from 30 days prior to the Group’s interim and
year-end balance dates to the first trading day after the
release of the respective periods results to the NZX,
30 days prior to the release of a product disclosure
statement for a general public offer, or such other period
as determined by the Board.
During any other period restricted persons who do not
possess material information may trade the Company’s
securities subject to notification and consent requirements.
Restricted persons may not trade until this written consent
has been received.
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PRINCIPLE 2 –
BOARD COMPOSITION
AND PERFORMANCE
“To ensure an effective Board, there should be a balance
of independence, skills, knowledge, experience
and perspectives.”
BOARD CHARTER
Recommendation 2.1: The Board of an issuer should
operate under a written charter which sets out the roles
and responsibilities of the Board. The Board charter
should clearly distinguish and disclose the respective
roles and responsibilities of the Board and Management.
The Board has adopted a formal Board Charter which
sets out the respective roles, responsibilities, composition
and structure of the Board, and this is available on the
Group’s website.
The Board is ultimately responsible for setting the
strategic direction of the Group, oversight of the
management of the Group and direction of its business
strategy, with the ultimate aim being to operate the
Group as a successful business, while respecting the
rights of other stakeholders. This includes establishing
the strategies and financial objectives with the Senior
Management Team, monitoring the performance of the
Senior Management Team, monitoring compliance and risk
management, and ensuring the Group has the appropriate
controls and policies in place.
The Board delegates the day-to-day affairs and
management responsibilities of the Group to the Chief
Executive Officer and Senior Management Team to deliver
the strategic direction and goals determined by the Board.
NOMINATION AND APPOINTMENT OF DIRECTORS
Recommendation 2.2 and 2.3: Every issuer should
have a procedure for the nomination and appointment
of Directors to the Board. An issuer should enter into
written agreements with each newly appointed Director
establishing the terms of their appointment.
The Board have delegated to the Remuneration and
Nomination Committee the responsibility to make
recommendations to the Board in respect of Board and
committee composition and, when required, identify
individuals believed to be qualified to become Board
members. Procedures for the appointment and removal
of directors are set out in the Remuneration and
Nomination Committee Charter. To be eligible for
selection the candidates must demonstrate appropriate
qualities and experience, and the Committee must be
satisfied that a candidate will commit the time needed to
be fully effective in their role. The Committee will ensure
proper checks as to the proposed Director’s character,
experience, education, criminal record and bankruptcy
history are conducted and key information about the
proposed Director is provided to shareholders to assist
their decision as to whether or not to elect or re-elect
the Director.
The whole Board will have the opportunity to consider
candidates for appointment to the Board. Directors may
be appointed by the Board or director nominations may be
made by shareholders for election at the Annual Meeting of
Shareholders. Directors appointed by the Board must stand
for re-election at the next Annual Meeting of Shareholders.
The NZX Listing Rules and the Group’s constitution
requires that all directors stand for re-election at the Annual
Meeting of Shareholders within three years of last being
elected. The Group enters into a written agreement with
each newly appointed director establishing the terms of
their appointment. With the pending retirement of two
existing directors in December 2022, the Board appointed
two new directors in August 2022.
DIRECTORS
Recommendation 2.4: Every issuer should disclose
information about each Director in its annual report
or on its website, including a profile of experience,
length of service, independence and ownership interests
and Director attendance at Board meetings.
The Board currently comprises nine directors; an
independent Chair, six independent directors, and two
non-executive directors. A profile of experience for each
director, including length of service, is available on the
Group’s website and included in the Annual Report.
Director’s ownership interests are included in the Other
Disclosures section of the Annual Report on page 72.
ATTENDANCE AT BOARD
AND COMMITTEE MEETINGS
For the year ended 30 September 2022.
Board
Audit and Risk
Management Committee
Remuneration and
Nomination Committee
Health and Safety
Committee
Sustainability
Committee
Number of meetings held1012333
Alasdair MacLeod1012
1
232
1
Diana Puketapu910333
Stephen Moir10113
1
33
1
Vincent Tremaine 10122
1
31
1
John Harvey 1012333
1
Blair O’Keeffe910
1
233
Hon Rick Barker 911
1
1
1
33
Dan Druzianic2
2
1
1
2
1
0
1
1
1
Kylie Clegg2
2
1
1
1
1
0
1
0
1
1. Non-committee members also in attendance.
2. Appointed as a director of the Board from August 2022.

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DIVERSITY AND INCLUSION
Recommendation 2.5: An issuer should have a written
diversity policy which includes requirements for the Board
or a relevant committee of the Board to set measurable
objectives for achieving diversity (which, at a minimum,
should address gender diversity) and to assess annually both
the objectives and the entity’s progress in achieving them.
The issuer should disclose the policy or a summary of it.
The Group has a diversity and inclusion policy which
defines the approach of the Group towards diversity and
inclusion. It also identifies the responsibilities of the Board,
the Senior Management Team and all of the Group’s
employees. The diversity and inclusion policy is available
on the Group’s website and is reviewed annually by the
Board. The Group recognises the value of a diverse and
skilled workforce and is committed to embedding diversity
and inclusion into employment practices and all aspects
of the Group’s operations. The Group will foster a culture
of inclusion – where all are welcome and can bring their
whole self to work and a variety of different viewpoints
and backgrounds are supported. The Board, Senior
Management Team, Managers and Supervisors, and
Human Resources will collectively and individually
support these aspirations.
Progressive and continuous improvement is being made in
line with our Future Work Programme addressing equality,
diversity and inclusion improvements. Our annual report
includes commentary on a number of initiatives progressed
during the year. Diversity metrics encompassing the Board,
Senior Management Team and the Group’s employees
are reviewed at a minimum annually.
The following is a breakdown of the gender composition
of the Group at the balance date:
2022*2021*
FemaleMaleFemaleMale
No. %No.%No.%No.%
Directors222778114686
Senior Management
Team
337563225675
Permanent employees551727883491724183
Total601729083521725383
Permanent employees
in leadership roles
(non SMT)
101748835104490
* as at 30 September
DIRECTOR TRAINING
Recommendation 2.6: Directors should undertake
appropriate training to remain current on how to best
perform their duties as Directors of the issuer.
The Board seeks to ensure that any new Directors are
appropriately introduced to the Senior Management
Team and the Group’s business, that all Directors are
acquainted with relevant industry knowledge, and receive
appropriate company documents to enable them to
perform their role as a Director.
Directors will receive induction training upon appointment,
and are expected to maintain appropriate levels of
financial, legal and industry understanding throughout
their appointment.
BOARD EVALUATION
Recommendation 2.7: The Board should have
a procedure to regularly assess Director, Board
and Committee performance.
The Board undertakes a biennial performance evaluation
of itself that discusses and assesses the performance of
each Director and the Chair, compares the performance
of the Board as a whole with the requirements of the
Board Charter, reviews the performance of the Board’s
Committees, and effects any improvements to the
respective Charters deemed necessary or appropriate.
The performance evaluation is conducted in the manner
the Board deems appropriate.
Recommendation 2.8 and 2.9: A majority of the Board
should be independent directors. An issuer should have
an independent Chair of the Board. If the Chair is not
independent, the Chair and CEO should be different people.
The Board currently comprises nine directors, seven
of whom have been determined to be “Independent
Directors” by the Board under the NZX Listing Rules. The
Chair of the Board is an Independent Director and is not
the Chair of the Audit and Risk Management Committee.
PRINCIPLE 3 –
BOARD COMMITTEES
“The Board should use committees where this will
enhance its effectiveness in key areas, while still retaining
Board responsibility.”
AUDIT AND RISK MANAGEMENT COMMITTEE
Recommendation 3.1: An issuer’s audit committee
should operate under a written charter. Membership on
the audit committee should be majority independent
and comprise solely of non-executive directors of the
issuer. The chair of the audit committee should be an
independent director and not be the chair of the Board.
The Audit and Risk Management Committee operates
under a written charter, which is available on the Group’s
website. The Committee is required to have a majority of
independent non-executive directors, at least two must
have an accounting or financial background, and the
Committee is required to meet at least two times per year.
The Chair of the Committee is an Independent Director
who is not the Chair of the Board. The Audit and Risk
Management Committee currently comprises Stephen
Moir (Chair), Diana Puketapu, Vincent Tremaine and John
Harvey. All directors may attend the Committee meetings
at their discretion.
The Audit and Risk Management Committee’s purpose
is to assist the Board in fulfilling its responsibilities
to discharge its financial reporting and regulatory
responsibilities, ensure the ability and independence
of the external auditor to carry out its statutory audit
role, ensure an effective internal audit and internal
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control system is maintained, and ensure an appropriate
framework is maintained for the management of strategic
and operational risk.
Recommendation 3.2: Employees should only attend
audit committee meetings at the invitation of the
audit committee.
The Chief Executive Officer, Chief Financial Officer and
any other employees the Audit and Risk Management
Committee considers necessary to provide appropriate
information and explanations may attend the Committee
on invitation. The Group’s external auditor also attends
selected meetings at the Committee’s invitation.
REMUNERATION AND NOMINATION COMMITTEE
Recommendation 3.3 and 3.4: An issuer should have
a remuneration committee which operates under a written
charter (unless this is carried out by the whole board).
At least a majority of the remuneration committee should
be independent directors. Management should only
attend remuneration committee meetings at the invitation
of the remuneration committee. An issuer should
establish a nomination committee to recommend director
appointments to the Board (unless this is carried out by
the whole board), which should operate under a written
charter. At least a majority of the nomination committee
should be independent directors.
The Remuneration and Nomination Committee operates
under a written charter, which is available on the Group’s
website. The Committee consists of at least three
members of the Board, the majority of the Committee
which are required to be Independent Directors. The
Committee is required to meet at least two times per year.
The Chair of the Committee is an Independent Director.
The Remuneration and Nomination Committee currently
comprises Diana Puketapu (Chair), Alasdair MacLeod,
Blair O’Keeffe and John Harvey. All directors of the Board
may attend the Committee meetings at their discretion.
The Chief Executive will act as secretary to the Committee
and other members of management may attend the
Committee meetings on invitation.
The primary responsibilities of the Committee include,
nominating and appointing directors to the Board,
remuneration of directors, remuneration and evaluation of
the Chief Executive Officer, review of the Chief Executive
Officer’s remuneration recommendations for the Senior
Management Team, review of the overall Group’s salary
and incentive policies, and succession planning.
Recommendation 3.5: An issuer should consider
whether it is appropriate to have any other board
committees as standing board committees.
All committees should operate under written charters.
An issuer should identify the members of each of its
committees, and periodically report member attendance.
HEALTH AND SAFETY COMMITTEE
The Group’s ultimate aim is to ensure that everyone
working at Napier Port returns safely to their families every
day. This is why health and safety is the top priority of
the Napier Port Board of Directors and health and safety
performance is actively reviewed at every board meeting.
The Group also has a Health and Safety Committee
whose purpose is to assist the Board in fulfilling its
responsibilities in respect of the health, safety and
wellness requirements within the Health and Safety at
Work Act 2015 and regulatory framework. The Health and
Safety Committee operates under a written charter, which
is available on the Group’s website. The Health and Safety
Committee operates in the context of the vision that every
person goes home safely every day, a culture of care, and
strategic objectives relating to people, place and planet.
The Committee consists of all members of the Board, and
is required to meet at least three times per year. The Chair
of the Committee is Vincent Tremaine. The Committee may
on invitation have in attendance members of management
including the General Manager People and Culture, and
other persons including senior health and safety staff, that
it considers necessary to provide necessary information
and explanations. The Chief Executive Officer and the
General Manager People and Culture are responsible
for drawing to the Committee’s immediate attention
any material matter that relates to notifiable events
and significant near misses or incidents.
SUSTAINABILITY COMMITTEE
The purpose of the Sustainability Committee is to identify
and consider relevant environmental, social and governance
(ESG) matters to provide strategic guidance and feedback
to the Board and management on the Group’s ESG related
strategies, policies, frameworks, initiatives, performance and
reporting. The objectives of the Committee include:
• Oversee the development of Napier Port’s ESG strategy
and ESG workplan and monitor progress;
• Make recommendations and report to the Board on
material ESG matters requiring governance decisions;
• Act as a formal forum for free and open communication
between the Board and management with respect to
ESG matters;
• Facilitate a common and aligned Board understanding
of what is within the scope of ESG matters;
• Ensure an appropriate framework is maintained for the
management of ESG related risks; and
• Oversee and review ESG reporting processes,
including relevant internal controls and external review
and audit processes.
The Sustainability Committee operates under a written
charter, which is available on the Group’s website.
The Committee consists of at least three members of the
Board and the Chair of the Committee is appointed by the
Board. The Sustainability Committee currently comprises
Blair O’Keeffe (Chair), Diana Puketapu and Rick Barker.
All directors of the Board may attend the Committee
meetings at their discretion. The Committee may on
invitation have in attendance members of management
including the Chief Executive Officer, Chief Financial Officer,
General Manager Assets and Infrastructure, and any relevant
external parties determined by the Committee Chair.
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TAKEOVER POLICY
Recommendation 3.6: The Board should establish
appropriate protocols that set out the procedure to be
followed if there is a takeover offer for the issuer including
any communication between insiders and the bidder.
The Board should disclose the scope of independent
advisory reports to shareholders. These protocols should
include the option of establishing an independent
takeover committee, and the likely composition and
implementation of an independent takeover committee.
Given the Group’s shareholding structure, with the
Hawke’s Bay Regional Council (Council), indirectly
controlling approximately 55% of the shares of the Group,
the Board considers it highly unlikely that a third-party
would make a takeover approach or proposal without
the support of Council. Notwithstanding this, the Board
consider it prudent to have protocols in place and has
established formalised takeover response protocols
to assist the Group to prepare for, and respond to any
unsolicited approaches or proposals it may receive in
relation to a takeover. These protocols would help to
inform the Board of their roles and responsibilities with
respect to any approach or proposal, assist the Board
and its advisers in developing and executing a response
strategy, and act as a basic guide on the process
for any takeover offer.
In the event of a takeover offer, a Takeover Response
Committee would be convened comprising independent
directors, management and appropriate financial, legal
and strategic advisers.
PRINCIPLE 4 –
REPORTING AND DISCLOSURE
“The Board should demand integrity in financial and
non-financial reporting, and in the timeliness and balance
of corporate disclosures.”
CONTINUOUS DISCLOSURE
Recommendation 4.1: An issuer’s board should have
a written continuous disclosure policy.
As a company listed on the NZX Stock Exchange, the
Company is committed to keeping the market informed
of all material information relating to the Group and
its shares. In doing so, the Group will comply with its
obligations in relation to continuous disclosure of material
information under the NZX Listing Rules. The Group has
a Continuous Disclosure Policy, which is available on the
Group’s website.
CHARTERS AND POLICIES
Recommendation 4.2: An issuer should make its code
of ethics, board and committee charters and the policies
recommended in the NZX Code, together with any other
key governance documents, available on its website.
Information about the Group’s corporate governance
framework (including Code of Ethics, Board and
Committee Charters, and other key governance policies)
are available to view on the Group’s website.
FINANCIAL AND NON-FINANCIAL REPORTING
Recommendation 4.3: Financial reporting should be
balanced, clear and objective. An issuer should provide
non-financial disclosure at least annually, including
considering environmental, economic and social
sustainability factors and practices. It should explain
how operational or non-financial targets are measured.
Non-financial reporting should be informative, include
forward looking assessments, and align with key
strategies and metrics monitored by the Board.
FINANCIAL REPORTING
The Audit and Risk Management Committee oversees
the quality and integrity of financial reporting ensuring the
financial reporting is balanced, clear and objective. The
Audit and Risk Management Committee’s responsibility
for the annual and interim financial statements includes,
reviewing the quality and acceptability of accounting
policies and practices, reporting disclosures and changes
thereto, reviewing areas involving significant judgement,
estimation or uncertainty, overseeing compliance with
financial reporting standards, appropriate laws and
regulations, assessing the overall performance of financial
management, and approving all financial reporting
to shareholders and other stakeholders.
NON-FINANCIAL REPORTING
The Group is committed to collaborating with others to
ensure our people, planet and place thrive. Caring for
our people, the local community and the environment
is core to our Culture of Care, which is the foundation
of our purpose and our business strategy.
In 2019, the Group completed a Sustainability Framework
focused on what the Group can achieve locally to
respond to global challenges like climate change, gender
equality and ocean conservation. Our Sustainability
Framework is aligned to the United Nations Sustainable
Development Goals (SDGs), reflecting the most urgent
global environmental, political and economic challenges.
Our framework identifies 14 of the SDG goals that we
can make a meaningful contribution to as a business.
This framework has guided the development of our
sustainability strategy.
During 2021, Napier Port’s Sustainability Strategy
and Action Plan was launched. Focus areas have been
developed for each theme of People, Planet, Prosperity
and Partnerships, which together with measurable
goals, targets and actions to pursue and report on,
will drive sustainable business at Napier Port. The
Sustainability Action Plan includes 100 time-framed,
actionable workstreams which gives us a blueprint
that will guide us in our direction and decision-making
as we work to implement the actions to meet our goals.
The Sustainability Strategy and Action Plan includes
an assessment of current progress on each
of these workstreams.
The Sustainability Strategy and Action Plan includes the
commitment to establish a robust and transparent process
for reporting on our sustainability goals. We commit
ourselves to transparently reporting on our successes
and areas of improvement. It is our long-term goal to work
towards Global Reporting Initiative (GRI) reporting
or a similar framework.
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In November 2021, the Group released an initial
Climate Change Related Disclosure Report prepared in
accordance with the recommendations of the Taskforce
on Climate-related Financial Disclosures (TCFD). Our
second TCFD report was released in November 2022.
These seek to provide stakeholders an understanding of
the potential financial implications of climate change on
our business. We expect to further develop and improve
our climate change related disclosures as we gather more
information and knowledge, and continue to develop our
sustainability goals and strategy. In particular, we have
prioritised the development of emissions targets and
measurement. Napier Port is also well placed to comply
with the soon-to-be-issued XRB Aotearoa New Zealand
Climate Standards.
This Annual Report includes reporting on our strategy
and various sustainability initiatives undertaken by the
Group during the current year.
PRINCIPLE 5 –
REMUNERATION
“The remuneration of directors and executives should
be transparent, fair and reasonable.”
DIRECTORS’ REMUNERATION
Recommendation 5.1: An issuer should recommend
director remuneration to shareholders for approval in a
transparent manner. Actual director remuneration should
be clearly disclosed in the issuer’s annual report.
The Remuneration and Nomination Committee is
responsible for a biennial review of Director remuneration
to determine whether Director remuneration is appropriate.
This review is required to consider benchmarking data
from similar listed companies.
In respect of both their roles as directors of Napier Port
Holdings Limited and Port of Napier Limited, fees in
aggregate for all Directors are a maximum of $655,000
per annum.
Under Listing Rule 2.11.3, if the total number of Directors
subsequently increases, the Directors are permitted
(without seeking shareholder approval) to increase the
total remuneration by the amount necessary to enable
the Group to pay the additional Director or Directors
remuneration not exceeding the average amount then
being paid to each of the existing Directors (other than
the Chair). On 1 August 2022 the number of directors
increased by two to nine. The number of directors is
expected to reduce to seven again when two existing
directors retire from the Board at the next Annual
Shareholders’ Meeting. The two new directors are
receiving the standard director’s fee and which is less
than the average amount being paid to each of the existing
directors (other than the Chair) in accordance with
Listing Rule 2.11.3.
Actual remuneration of Directors is included in the Other
Disclosures section of the Annual Report on page 73.
REMUNERATION POLICY
Recommendation 5.2: An issuer should have a
remuneration policy for remuneration of directors
and officers, which outlines the relative weightings of
remuneration components and relevant performance criteria.
The Group has adopted a Remuneration Policy which sets
out the remuneration principles that apply to the Directors,
Chief Executive Officer and Senior Management team.
The policy is available on the Group’s website. The
policy requires that remuneration decisions are fair and
reasonable and based on merit, where appropriate. The
Group will not discriminate on the grounds of gender,
race, religion or belief, disability, age, sexual orientation
or gender identity. Remuneration will be set at levels that
recognise an individual’s market value (i.e. level of skills
and experience, the demand for skill and performance
in the role, and the commercial environment).
DIRECTORS
The Group’s policy is that all remuneration of Directors will
be paid in cash, they will not receive any performance-
based remuneration or retirement benefits. All Directors
(excluding the Chair) will be paid a base fee and additional
fees will be payable to the Chairs of the Committees and
the Board Chair a Chairs’ fee, all as recommended by the
Remuneration and Nomination Committee and subject
to the aggregate director remuneration limit approved
by Shareholders from time to time.
CHIEF EXECUTIVE OFFICER (CEO)
AND SENIOR MANAGEMENT TEAM
Determination of remuneration for the CEO and Senior
Management team is subject to a fair and thorough
process. Remuneration will be determined by the
scale and complexity of the relevant employee’s role.
A remuneration review is undertaken by the Remuneration
and Nomination Committee annually.
Under the Group’s remuneration framework, individual
performance and market relativity are key considerations,
balanced by the context in which the Group operates.
Remuneration of the CEO and Senior Management team
includes a mix of fixed and variable components.
A summary of the current provisions is as follows:
• Fixed remuneration – this includes the relevant
employee’s base salary and cash allowances and any
direct non-cash benefits (e.g. KiwiSaver contributions,
health insurance and annual leave);
• Other variable remuneration – some Senior Management
team positions, including the CEO, are eligible for
additional remuneration from Long-Term Incentive
(LTI) and Short-Term Incentive (STI) plans. Eligibility is
determined by the Board of Directors and, in the case of
the Senior Management team, together with the CEO.
The terms and conditions of any STI or LTI plan are
identified in the individual employment agreements of the
Senior Management team member to whom it applies;
• Total remuneration – this includes fixed and variable
remuneration. Total target remuneration will typically
be set within a range of 80% to 120% of the relevant
median comparatives.
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• STI remuneration is conditional upon the achievement
of minimum financial targets in relation to EBITDA and
certain banking covenants, along with a series
of non-financial objectives, and is subject to the
Board’s discretion.
The remuneration policy is reviewed by the Board annually.
CHIEF EXECUTIVE OFFICER (CEO) REMUNERATION
Recommendation 5.3: An issuer should disclose the
remuneration arrangements in place for the CEO in its
annual report. This should include disclosure of the base
salary, short-term incentives and long-term incentives and
the performance criteria used to determine performance-
based payments.
The remuneration of the CEO for the year ended
30 September 2022 is included in the Other Disclosures
section of the Annual Report on page 73.
The remuneration of the CEO includes a mix of fixed and
variable components. Fixed remuneration includes a base
salary, life insurance and superannuation contributions.
Variable components include a Short-Term Incentive
(STI) linked to objectives set annually and performance
assessed by the Board, and a Long-Term Incentive (LTI).
SHORT TERM INCENTIVES
The STI is based on the achievement of both financial
and non-financial objectives with an actual opportunity
in the range of 0–40% of the CEO’s current base
salary. Strategic objectives are set each year by the
Remuneration Committee (and approved by the Board)
and closely align to Napier Port’s strategic goals. The
financial objective is to meet or exceed the Company’s
financial performance targets for the year. Non-financial
objectives for 2022 included strategic objectives in
relation to health and safety, sustainability, people
engagement and infrastructure project delivery. STI
remuneration is conditional upon the achievement of
minimum Board approved debt coverage and EBITDA
levels and is subject to the Board’s discretion. The
Remuneration Committee assesses the CEO’s
performance against these objectives and recommends
the STI for approval by the Board. The Board retains
complete discretion over paying a STI and may determine,
despite the actual performance against objectives, that
a reduced STI or no STI will be paid in any given year.
LONG TERM INCENTIVES
The LTI grants share rights to the CEO that will vest at the
completion of a three-year vesting period. The proportion
of share rights that will actually vest depends on the
CEO’s continuous employment during the vesting period,
the achievement of total shareholder return (TSR) hurdles
over the vesting period, and for the initial grant, certain
EBITDA targets over the prospective financial information
period (2019 and 2020 financial years).
The TSR hurdles over the vesting period are as follows:
Napier Port’s TSR
Percentage of
the relevant
share rights
that vest
Is not positive0%
Less than or equal to the NZX 50
Peer Group median TSR
0%
Greater than the NZX 50 Peer Group
median TSR
50%
Exceeds the NZX 50 Peer Group median
TSR, but does not exceed the 75
th
percentile
of the NZX 50 Peer Group
50% -
100%
(pro rata)
Equal to or greater than the 75
th
percentile
TSR of the NZX 50 Peer Group
100%
Any vesting shares under the LTI are eligible for additional
dividend shares based on any cash dividends paid by the
Group during the vesting period.
PRINCIPLE 6 –
RISK MANAGEMENT
“Directors should have a sound understanding of the
material risks faced by the issuer and how to manage
them. The Board should regularly verify that the issuer
has appropriate processes that identify and manage
potential and material risks.”
RISK MANAGEMENT
Recommendation 6.1: An issuer should have a risk
management framework for its business and the issuer’s
board should receive and review regular reports.
An issuer should report the material risks facing the
business and how these are being managed.
The Board and Senior Management Team are committed
to managing risk to protect our people, the environment,
financial business risks, company assets and our
reputation. The Audit and Risk Management Committee is
responsible for ensuring that management is implementing
the Group’s risk management framework and policies.
The Group has a comprehensive risk management system
in place which is used to identify and manage business
risks. The system identifies the key risks facing the
Group and the status of initiatives employed to reduce
them. Management report to the Board periodically,
on the effectiveness of the Group’s management of these
material risks. As part of risk management the Group
also has a comprehensive treasury policy that sets out
procedures to minimise financial market risk. The Group
maintains insurance policies that it considers adequate
to meet insurable risks.
The Group has completed a ‘Whole of Port’ Climate
Change Risk Assessment – looking at infrastructure
resilience, trade forecasting, land levels, weather
conditions, emergency preparedness and habitat
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modification, identifying climate-related risks and
opportunities. The material findings from this work have
been incorporated into the Group’s Climate Change
Related Disclosure report, which is available on the
Group’s website.
HEALTH AND SAFETY
Recommendation 6.2: An issuer should disclose how it
manages its health and safety risks and should report on
its health and safety risks, performance and management.
The Group aims to ensure that everyone working at Napier
Port returns safely to their families every day. To ensure
a safe and healthy work environment, the Group has
developed, and seeks to continuously improve a health
and safety management system that is managing safety
performance and promotes a safety culture.
Managing safety performance is achieved by:
• Setting health and safety objectives and performance
criteria for all work areas, tracking performance
through lead and lag indicators, identifying trends and
implementing appropriate responses;
• Ensuring the health and safety framework is reviewed at
least annually;
• Actively encouraging accurate and timely reporting of all
accidents, incidents, near misses and unsafe conditions;
• Ensuring all serious accidents, incidents, near misses
are investigated and root cause analyses conducted;
• Ensuring risk assessments are conducted, controls
are identified and implemented based on those
assessments and where necessary updated where risks
or controls may have changed;
• In the event of an injury ensuring the Group takes an
active role in employee’s safe and early return to work;
• Ensuring the Group meets its obligations under the
Health and Safety at Work Act 2015, associated
regulations, codes of practice and standards and
guidelines regulating worker health and safety.
Promoting a health and safety culture is achieved by:
• Supporting a “Just Culture” philosophy where health
and safety is supported and promoted through enabling
worker participation, ensuring adequate resources are
allocated to health and safety initiatives and providing
training and information about specific health and safety
risks; and
• Promoting continuous improvement and good practice
in health and safety.
To promote a best practice approach to health and safety
the Group has introduced a safety implementation road
map consisting of three strategic projects. The road
map includes:
• A Safety Management System to align to best practice
standard for Occupational Health and Safety practice
(ISO 45001);
• A Critical Risk Control Management programme
focusing on the management and control of the port
critical risks;
• A replacement health and safety information
management system (SAI360) to support streamlined
reporting, compliance and structured assurance activity.
The initial foundational safety implementation roadmap
phase has recently been completed and planning is now
underway for a safety maturity programme including
further development of critical risk controls, learning
and development, and our health framework, amongst
other objectives.
Every Director, Senior Manager, Middle Manager, Team
Leader/Supervisor and worker is expected to share in this
commitment to the Health and Safety Policy by following
the duties and responsibilities specified in the Napier Port
Health and Safety Duties and Responsibilities Policy.
PRINCIPLE 7 –
AUDITORS
“The Board should ensure the quality and independence
of the external audit process.”
EXTERNAL AUDIT
Recommendation 7.1 and 7.2: The Board should
establish a framework for the issuer’s relationship with
its external auditors. This should include procedures
prescribed in the NZX Code. The external auditor should
attend the issuer’s annual meeting to answer questions
from shareholders in relation to the audit.
The Audit and Risk Management Committee is responsible
for the oversight of the Group’s external audit arrangements.
These arrangements include procedures for the matters
described in Recommendation 7.1 of the NZX Code.
Subject to any requirements of the Auditor General, the
Audit and Risk Management Committee is responsible
for recommending the appointment and removal of the
independent auditor. The Committee is also responsible for
reviewing the independence of the external auditors and the
appropriateness of any non-audit services they undertake,
having direct communication with, and unrestricted access
to, the independent auditor, and ensuring that the key audit
partner (as defined in the NZX Listing Rules) is rotated
every five years.
Napier Port has an External Auditor Relationship Framework
Policy which complements the Audit and Risk Management
Committee Charter by outlining requirements in relation
to the provision of services to Napier Port by any external
auditor on behalf of the Auditor General. The purpose
of this framework is to ensure that the independence
of Napier Port’s external auditor is not impaired, or put in
a position where it could reasonably be perceived to be
impaired, such that Napier Port’s external financial reporting
is viewed as highly reliable and credible.
The auditor of the Group is the Auditor General. The Auditor
General may approve external audit firms to undertake the
external audit of the Group. The Group’s external auditor is
EY. The total fees paid to EY in their capacity as auditor are
disclosed in the Annual Report on page 85.
The group invites EY to attend the Annual Meeting of
Shareholders and the audit partner is available to answer
shareholder questions about the conduct of their audit
and the preparation and content of the auditor’s report.
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