POT Annual Report 30 June 2023

Port of Tauranga Limited
Integrated Annual Report 2023
Beyond the horizon

Connecting
New Zealand
and the World
Tauranga
Moana
Port of Tauranga
is invested in the
wellbeing of Tauranga
city, the harbour
and its people.
Aotearoa
New Zealand
As the only
New Zealand port
able to accommodate
larger container vessels,
Port of Tauranga
provides nationally
significant infrastructure.
Te Moana-a-Toi
Bay of Plenty
The Port is an anchor
for the Bay of Plenty
economy, providing
a stable income and
creating prosperity
well beyond the region.
Tōpito o te ao
The world
Port of Tauranga is
New Zealand’s largest
and most efficient
port, enabling essential
access to global markets.
Port of Tauranga
connects New Zealand
and the world.
Port of Tauranga Limited – Integrated Annual Report 2023
1

Total trade
million tonnes
2021 2022 2023
25.7 25.6 24.7
Imports
million tonnes
2021 2022 2023
9.4 9.7 9.0
Exports
million tonnes
2021 2022 2023
16.3 15.9 15.7
Subsidiary and associate
company earnings
million
2021 2022 2023
$18.6 $15.0 $13.3
Total ordinary dividend
cents per share
2021 2022 2023
13.5 14.7 15.6
Final dividend
cents per share
2021 2022 2023
7.5 8.2 8.8
3 Highlights and challenges
4Chair and Chief Executive’s report
to shareholders
12 Integrated reporting
14Company overview
– Our purpose and vision
– Our values
– Our national network
– How Port of Tauranga creates value
20 What matters most?
22 Managing risks and opportunities
24Capital – Our relationships
30 Capital – Our people
36 Capital – Our skills and knowledge
42Capital – Our environment
48 Capital – Our assets and infrastructure
54 Capital – Our finances
60Board of Directors
62Senior management team
64Consolidated financial statements
106Corporate Governance Statement
summary
118Financial and operational five year
summary
120Company directory
Highlights and
challenges
Year ended 30 June 2023
1
TEUs = twenty foot equivalent units, a standard
measure of shipping containers.
Contents
Group Net Profit After Tax
million
2021 2022 2023
$102.4 $111.3 $117.1
Revenue
million
2021 2022 2023
$338.3 $375.3 $420.9
Container volumes
million TEUs
1
2021 2022 2023
1.20 1.24 1.18
Ship visits
2021 2022 2023
1,307 1,369 1,432
Scholarships
tertiary education
2021 2022 2023
18 18 18
Greenhouse gas emissions
reduction (Scope 1, 2 & 3)
2021 2022 2023
(7.9%) 2.4% 7.3%
Container crane rate
moves per hour
2021 2022 2023
29.7 32.1 27.9
Total Recordable Injury
Frequency Rate
per million hours worked (Port of Tauranga)
2021 2022 2023
0 0 4.5
20.7 per million hours worked
(Port of Tauranga and contractors combined
– a 22.5% decrease from 26.7 in 2022)
Port of Tauranga Limited – Integrated Annual Report 2023
3
2

THE YEAR IN REVIEW:
Chair and Chief Executive’s report to shareholders
We have just opened the Ruakura Inland Port in Hamilton, directly
connecting the Waikato region to our facilities in Auckland and Tauranga
by rail. The new facility is a game changer for the Upper North Island supply
chain and unlocks efficient and lower carbon pathways to international
markets for Waikato-based importers and exporters.
This investment is the latest
development in more than
a decade of initiatives designed
to ensure New Zealand remains
competitive on the world stage
by facilitating visits by larger
container ships.
Port of Tauranga’s “big ship”
strategy supports New Zealand’s
decarbonisation strategy,
addresses shipping capacity
constraints and provides our
trading nation with reliable
access to its global customers.
Container shipping
schedule recovers
For the past two and a half
years we have weathered multiple
challenges brought by the
Covid-19 pandemic, delays at
other ports causing congestion at
Tauranga, and shipping schedule
uncertainty from widespread
disruption across the international
supply chain.
In March 2023, we ushered in
a welcome return to shipping
schedule reliability. This required
the agreement and efforts of all
major New Zealand ports as well
as the shipping lines.
The lack of certainty in shipping
movements has had a major
impact on container terminal
efficiency since 2020. Ships often
arrived in bunches, resulting
in delays at anchor during
peak times. Labour shortages
exacerbated the situation and train
capacity limits created backlogs.
Port of Tauranga implemented
congestion charges to incentivise
shippers to keep cargo flowing
through the terminal and avoid
excessive storage periods for both
import and export containers.
Storage revenue is expected to
return to usual levels with the
return of proforma berth windows,
and we expect efficiency gains as
cargo throughput increases. We
still have some finetuning to do
to ensure we are maximising our
current berth capacity, as we wait
for permission to build an additional
container berth.
Severe weather throughout the
summer had a variety of impacts
on cargo volumes. The Port escaped
any serious infrastructure damage
from Cyclone Gabrielle in February,
but in January alone we lost 88
hours of productivity at the container
terminal due to strong wind events.
Port of Tauranga
continues to invest in
the critical infrastructure
needed to deliver an
effective supply chain
for New Zealand.
Port of Tauranga Limited – Integrated Annual Report 2023
4
Leonard Sampson
Chief Executive
5

A log train derailment near Te
Puke impacted export volumes
in January. However, trees in the
central North Island damaged by
Cyclone Garbielle were harvested
early to avoid waste, contributing
to a temporary boost in log export
volumes in the last few months
of the financial year.
Financial results for the year
ended 30 June 2023
Group Net Profit After Tax was
$117.1 million, a 5.2% increase
on the previous year. Parent Net
Profit After Tax was $103.8 million
(compared with $96.4 million the
previous year).
Revenue was $420.9 million
(compared with $375.3 million).
EBITDA (Earnings Before
Interest, Tax, Depreciation and
Amortisation) was $219.1 million
(compared with $204.7 million).
Subsidiary and associate company
earnings decreased by 10.7% to
$13.3 million, with other ports in the
group experiencing decreased bulk
exports and Coda Group impacted
by the slowdown in imports.
Labour and fuel costs again grew
in the current high inflation
environment, and a renegotiation
of contracts with KiwiRail led to
a significant increase in rail costs.
Operating expenses increased
15.6% to $210.6 million.
Port of Tauranga’s Board of
Directors has declared a fully
imputed final dividend of 8.8
cents per share, to bring the total
dividend to 15.6 cents per share.
This is a 6.1% increase on the 2022
financial year.
Cargo trends in 2023
Total trade decreased 3.6% to
24.7 million tonnes, compared with
25.6 million tonnes the previous
year. Imports decreased by 7.0% to
9.0 million tonnes, while exports
decreased 1.5% to 15.7 million tonnes.
Container volumes decreased
5.1% to 1.18 million TEUs.
Log export volumes increased
2.6% to 6.2 million tonnes, with an
unexpected boost to volumes in the
second half of the financial year due
to the impact of cyclone-damaged
trees being harvested early.
Dairy product exports (including
transhipped cargo) increased 2.7%
in volume, while meat exports
increased 3.0% in volume.
Kiwifruit volumes were impacted
by weather and fruit quality issues,
decreasing 20.3% compared with
the previous year. However, the
long-term outlook for the kiwifruit
sector remains strong.
Oil product imports increased 1.7%.
Fertiliser imports increased 5.1%,
while grain decreased 12.2% and
protein and stock feed imports
decreased by 9.0%.
MetroPort Auckland container
volumes decreased 12.8% as
imported container numbers
slowed.
Return of cruise ships
Cruise ships returned to Bay of
Plenty waters for the first time
since the Covid pandemic brought
international travel to a halt in
March 2020.
The Majestic Princess was
welcomed by locals and media
on her arrival from Tahiti in
October 2022.
The ship had around 3,500
passengers on board plus crew and
was the first of 88 cruise vessels
to call over the summer season.
This compares to the record 116
visits during the 2018-2019 season.
Port of Tauranga is well-
placed to serve New Zealand’s
growing cargo needs for at
least the next three decades.
Court hearing held over berth
extension proposal
Port of Tauranga is seeking
resource consent to extend its
wharves and convert existing
cargo storage land.
The application was heard in the
Environment Court in March 2023
and, at the time of writing, we
await a decision.
Detailed planning and consultation
began in early 2019. The proposal
involves up to 385 metres of new
berth at the container terminal, with
some dredging to create a turning
circle in Stella Passage, plus a small
amount of reclamation behind
the wharf. Eventually, the Port
also plans to upgrade the Mount
Maunganui wharves.
After unsuccessful applications to
have the consent ‘fast tracked’,
the Port applied for direct referral
to the Environment Court. A
three-week court hearing was
held in March 2023, with the
Port’s application being opposed
by local iwi and hapū impacted
by industrial development in
and around Te Awanui Tauranga
Harbour over many decades.
Without the development, the
Port will face capacity constraints
within a few years. Leaders of
some of the country’s biggest-
earning export industries have
publicly expressed their concerns
about the lengthy resource
consent process.
Zespri, Kotahi, Oji Fibre Solutions and
the New Zealand Cargo Owners
Council have reinforced the urgent
need for the additional capacity for
the sake of New Zealand Inc.
Automation to increase
capacity
We are also pursuing our plans to
automate container storage at the
terminal to increase our capacity
within the current land footprint.
Automated stacking cranes, a
well-proven technology already in
use in many of the world’s most
efficient ports, will be introduced
in phases over the next few years.
At the time of writing, Port of
Tauranga is evaluating proposals
from potential vendors, with the
view to selection early in 2024.
Recruitment for key project roles
is under way, with a health and
safety project lead and project
manager commencing work in
early August.
Together with the recently-opened
Ruakura Inland Port, we believe
Port of Tauranga is well-placed
to serve New Zealand’s growing
cargo needs for at least the next
three decades.
Health and safety
Port of Tauranga seeks to provide
consistent, reliable and efficient
operational performance without
compromising safety. The Port has
been heavily involved in port sector
safety strategy over the past year,
via the Port Industry Association
and the Port Health and Safety
Leadership Group. Our General
Manager Health and Safety, Pat
Kirk, is the current Chair of the
Port Industry Association and is
an industry representative on the
Leadership Group.
Port of Tauranga has played a key
role in strategic industry safety
initiatives such as the Fatigue Risk
Management System, and the draft
Approved Code of Practice for
cargo loading and unloading. Both
initiatives have been developed in
consultation with industry, unions
and the regulatory agencies,
Maritime NZ and WorkSafe.
Port of Tauranga seeks to
provide consistent, reliable
and efficient operational
performance without
compromising safety.
“
”
THE YEAR IN REVIEW:
Chair and Chief Executive’s report to shareholders
Port of Tauranga Limited – Integrated Annual Report 2023
7
6

Underlining its commitment to
health and safety best practice,
the Board of Directors has recently
established a Health and Safety
Committee.
New pilot launch
In May, Port of Tauranga
welcomed the newest member
of its marine fleet, the 17.55 metre
Troy Evans pilot launch.
The launch is named after
a former Port of Tauranga pilot,
tug master and safety champion.
You can read more about this
story on page 52.
Air and water quality
improvements
Port of Tauranga continues to take
its environmental responsibilities
very seriously, with a constant
focus on air and water quality
in and around the port.
Dust generation from port
activities complies with the
National Environmental Standard
for Air Quality, but we continue to
seek ways to decrease dust even
further. In the past few years,
we have installed additional wind
fences, increased wharf sweeping
and improved traffic management
and cargo handling.
Port of Tauranga has recently
agreed to help fund some of the air
quality monitoring in the industrial
area to enable Bay of Plenty
Regional Council to introduce
supplementary air sensors into
nearby residential areas.
Port of Tauranga also has an
extensive water quality monitoring
programme, with extensive testing
for suspended solids, heavy metal
toxicants and other contaminants,
with all monitoring results
currently within compliance limits.
Decarbonisation and climate
change adaption
Total greenhouse gas emissions
(Scope 1, 2 and 3) for the year
ended June 2023 decreased 7.3%
to 40,021 tonnes. This was primarily
due to an overall decrease in cargo
tonnages and rail volumes to and
from MetroPort Auckland.
Greenhouse gas emission intensity
(emissions per cargo tonne)
decreased, by 3.8%.
Our opportunity to significantly
reduce emissions in the near to
mid future lies in automation.
Automated stacking cranes
are fully electric and have
significantly fewer emissions than
a comparable traditional diesel
straddle carrier operation.
The trend to larger, more efficient
vessels also has benefits for
New Zealand’s marine emissions
profile, as they produce fewer
emissions per container.
We have engaged external
consultants OnePointFive and
Tonkin & Taylor to help us prepare
for the new mandatory carbon-
related disclosures regime, and
to review our preparedness
for climate change.
The increased frequency and
intensity of major weather
events is being factored into our
infrastructure planning. However,
it is likely we will face more frequent
operational delays due to weather
conditions, increased insurance
premiums and higher other costs.
Port of Tauranga’s vision for
the Upper North Island supply
chain involves enhancing
existing assets while investing
in supporting infrastructure
such as rail connections.
THE YEAR IN REVIEW:
Chair and Chief Executive’s report to shareholders
Port of Tauranga Limited – Integrated Annual Report 2023
8
9

An efficient and resilient
Upper North Island supply
chain
Port of Tauranga’s vision for the
Upper North Island supply chain
involves enhancing existing assets
to expand capacity and resilience.
We believe an integrated, efficient
and cost-effective supply chain
can be achieved with Government
assistance in removing regulatory
and legislative barriers, and
investment in transport networks.
Current legislation and policy
does not encourage nor facilitate
investment, even when it is
environmentally sound and/or
nationally important. The resource
consenting process is complex,
time-consuming and costly for
all parties involved.
The current regime prevents the
adoption of new technology
and the associated economic
and environmental benefits (such
as decarbonisation). It also stops
existing assets being utilised
to their full potential.
Outlook
We look forward to the return
of productivity and capacity
maximisation now that shipping
schedule reliability is more
consistent.
In the year ahead, we expect
the current global economic
conditions and softening
commodity prices to continue
to affect cargo volumes, while
inflationary pressures will continue
to impact costs.
Geopolitical issues will also likely
continue to impact the global
supply chain.
The Board of Directors and Port
of Tauranga management are
confident that the company
is well-positioned to face the
multiple challenges ahead.
We have a diverse range of
cargoes and income sources,
and a small but efficient team.
We will provide guidance for
the 2024 financial year at our
Annual Shareholders Meeting
on 27 October 2023.
Thank you
Our heartfelt appreciation goes
to our people and partners,
who have weathered multiple
storms (physical and figurative)
over the past few years, both
inside and outside the port
gates. This includes our service
providers, who have ensured
we keep cargo moving.
Our customers remain patient
and supportive, and we thank
them for their loyalty.
Port of Tauranga is connecting
New Zealand and the world.
Ngā mihi nui
Leonard Sampson
Chief Executive
Julia Hoare
Chair
The Board of Directors
and Port of Tauranga
management are confident
that the company is
well-positioned to face the
multiple challenges ahead
of us this financial year.
Julia Hoare
Chair
THE YEAR IN REVIEW:
Chair and Chief Executive’s report to shareholders
Port of Tauranga Limited – Integrated Annual Report 2023
11
10

The 2023 Integrated Annual Report for Port of Tauranga Limited outlines
how the company creates value for our stakeholders over the short,
medium and long-term.
In this report, we describe our
strategy, governance, performance
and outlook.
Since 2018, Port of Tauranga has
utilised the international Integrated
Reporting Framework in our
annual reporting. More recently,
we have added to our reporting
on climate-related matters in
anticipation of the new regulations
being introduced in 2024 for listed
New Zealand companies and
public entities.
Our greenhouse gas emissions
are audited annually by Toitū
Envirocare using the Toitū
carbonreduce certification.
In 2024 we will reassess our
material issues by surveying
our team members and external
stakeholders. This ensures that
our strategies focus on those
issues that are the highest priority
for our stakeholders, and that
we have the greatest ability
to influence.
Our strategies are also informed
by our purpose, vision and values,
which we describe on page 14.
How to read this report
In the following pages, we
describe the capitals, resources
or inputs that we use or affect: our
relationships, our people, our skills
and knowledge, our environment,
our assets and infrastructure,
and our finances. We outline the
capabilities, strengths and expertise
we add, describe our activities
and outputs, and the resulting
outcomes for our stakeholders.
We define ‘stakeholders’ as anyone
who has something to gain, or
something to lose, from Port of
Tauranga’s activities. They include
neighbours, customers, iwi and
hapū, regulators, service providers,
partners and employees.
Governance
The Board of Directors is
committed to engaged, quality
governance. Conversations
are characterised by open
debate, respectful challenge
and constructive criticism.
Directors have effective
relationships with management,
and frequently engage directly
with employees, customers
and other stakeholders.
Integrated reporting is a journey
and we will continue to assess
and adapt our approach as we
seek to increase our transparency,
build credibility and preserve trust.
Integrated thinking, actions and
reporting ensure the best possible
outcomes for all our stakeholders.
Julia Hoare
Chair
INTEGRATED REPORTING:
Integrated
reporting
Port of Tauranga Limited – Integrated Annual Report 2023
13
12

Our purpose
Connecting New Zealand and the world.
Our vision
Our purpose goes beyond profit and is the
key to Port of Tauranga’s ongoing success.
Our aspirations for 2030 are:
– Drive national prosperity
New Zealanders will value the port as an asset
that drives our nation’s prosperity by providing
the most efficient access to global trade.
– Improve community wellbeing
We will improve our community’s wellbeing
by providing jobs and economic growth, as well
as forming effective partnerships to pursue
a shared vision of success.
– Protect our natural environment
We will protect and enhance our natural
environment. We will invest in technology
and embed sustainable practices throughout
our business.
– Respect mana whenua
We will recognise and respect the mana whenua
of the rohe and acknowledge the kaitiakitanga
of iwi and hapū.
– Nurture our people
We will be an attractive and accessible workplace
where talent is nurtured. Our people will be proud
to work here and know their contribution is valued.
We will foster a culture of empowerment, where
health and safety is at the forefront of everything
we do.
– Provide superior customer service
We will be driven by our customers’ needs
and create innovative supply chain solutions.
We will deliver on our promises, provide superior
service and grow together.
– Deliver long-term value
We will deliver long-term value for investors
through leading environmental and ethical
performance, business resilience and sound
financial management.
COMPANY OVERVIEW:
Our purpose
and vision
Our purpose and vision guides us to focus our
attention, effort and resources in the right places,
reflecting the priorities of our stakeholders.
Having a ‘safety
always’ mindset
Creating
better ways
Listening and
working together
Taking pride and
doing the right thing
Our
values
Our values define our fundamental beliefs and dictate our
behaviour as individuals, as teams and as an organisation.
We will achieve our vision by:
Port of Tauranga Limited – Integrated Annual Report 2023
15
14

50% ownership
with Kotahi
• Freight logistics group
incorporating Tapper
Transport, Dairy Transport
Logistics, Priority Logistics
and MetroPack
• Operates New Zealand’s
largest intermodal freight
hub at Otahuhu in
Auckland.
50% ownership with
Marsden Maritime Holdings
• Deep water commercial
port near Whangarei.
46
1
3
50% ownership with Ports
of Auckland
• Online cargo
management system.
Operated by parent
company and KiwiRail
• Inland port in the heart
of Auckland’s commercial
and industrial area,
connected by rail to
Tauranga and Hamilton
• New Zealand’s fourth
largest container terminal.
50:50 joint venture with
Tainui Group Holdings
• Inland port connected
by rail to Tauranga
and Auckland
• Part of the Ruakura
Superhub logistics and
industrial precinct
• Opened August 2023.
Operated by Timaru
Container Terminal
• Intermodal freight hub
at Rolleston
• Rail connections to Timaru
Container Terminal and
rest of South Island
• New warehouse built for
Coda Group.
100% ownership
• Direct links to Tauranga
• Operates MetroPort
Christchurch at Rolleston.
100% ownership
• Specialist cargo handling
services company with
operations at Tauranga
and Timaru.
50% ownership with
Timaru District Holdings
• Commercial port in Timaru
• Bulk cargoes including
major cement handling
facility
• New oil terminal.
5
6516
1
234
5
2
3
1
Parent company
• New Zealand’s largest port and international freight hub
• Container terminal, bulk/breakbulk cargo wharves and
bunkering/bulk liquids facilities
• Extensive cargo storage and handling facilities
• Rail connections to Hamilton, Auckland and the
central North Island
• Extensive road networks (State Highways 2 and 29)
and coastal shipping connections.
6
COMPANY OVERVIEW:
Our
national
network
By the numbers:
Port of Tauranga is New Zealand’s international hub
port. It operates the country’s largest container terminal
and handles around 42% of all shipping containers.
Port of Tauranga handles 33% of all New Zealand
cargo and 37% of all New Zealand exports
2
.
8,036TEU total ground slots at Tauranga Container
Terminal including 1,404 slots for refrigerated
containers (3,426 powered connections)
2,880TEU capacity at MetroPort Auckland
2.8kmtotal quay length at Tauranga, with 15 berths
279employees at parent company
15haland in Rolleston near Christchurch
45haland in Auckland
190haland in Tauranga
14.5mshipping channel depth in Te Awanui
Tauranga Harbour
50+straddle carriers
8container cranes (9th on order)
at Tauranga Container Terminal
State Highway 1
State Highway 2
Auckland-Hamilton-
Tauranga rail
connection
East Coast main

trunk rail network
KEY
Christchurch
Timaru
Invercargill
Wellington
Napier
Murupara
Hamilton
Auckland
Northport
Port of Tauranga
5
4
6
3
2
1
Ruakura
Picton
2
https://www.transport.govt.nz/statistics-and-insights/freight-and-logistics/
Port of Tauranga Limited – Integrated Annual Report 2023
17
16

Our
capabilities
• A can-do attitude
• Sector-leading safety
performance
• Flexibility
• Proven ability to
execute strategy
Our inputs
• History of sound
commercial infrastructure
investment
• Deep understanding of
supply chain dynamics
• Cost-effective and
competitive labour model
• Located close to cargo
catchments and linked by
road, rail and sea
• Strong and transparent
governance framework
• Astute financial and risk
management
• Responsive and creative
customer service
How Port
of Tauranga
creates value
COMPANY OVERVIEW:
Our outputs
• Growing trade volumes based on long-term
freight agreements with key customers
• Constructive partnerships with iwi and
community organisations, focused on
harbour health, education and youth
development
• Principal sponsorship of national events
held locally and community infrastructure
• Consistent, reliable and efficient operational
performance without compromising safety
• Innovative investments in other ports, inland
freight hubs, logistics and cargo handling
specialists
• Strategic land holdings on both sides of
Tauranga Harbour and other key locations
• Cargo handling equipment and storage
capacity that enables cargo volume growth
• Proactive pollution prevention and incident
response
• Investments in energy efficiency and
waste minimisation
• Strong balance sheet with favourable
debt facilities
• Job creation – direct and indirect
• Dividends paid to shareholders,
including regional ratepayers
(through cornerstone
shareholder, Quayside
Holdings)
Outcomes for
our stakeholders
• Enduring, mutually beneficial
partnerships
• A proud, safe and motivated workforce
• Highly effective and resilient logistics
networks that meet the needs of the
New Zealand supply chain
• Responsive environmental stewardship
and improved air and water quality
• Appropriate risk and return
for our shareholders
• Secure employment and
prosperity for local,
regional and national
communities
Our
finances
Our
environment
Our skills and
knowledge
Our assets and
infrastructure
Our
relationships
Our
people
Port of Tauranga Limited – Integrated Annual Report 2023
19
18

WHAT MATTERS MOST:
What
matters
most?
New Port of Tauranga logo
Over the past 18 months, we have
undertaken a review of our brand
assets to better communicate
our purpose, vision and values
to our team and our external
stakeholders. As part of this review,
we have worked with an external
agency to redesign our logo.
The new logo reflects our
unique geographic location.
Its geometric shapes echo the
silhouette of Mauao (the mountain
at the entrance to Te Awanui
Tauranga Harbour), the rising
sun, the horizon and the curve
of the shipping channel. The
circular shape characterises the
port’s place at the centre of the
community, a hub of activity
and a safe anchorage. The curves
also represent connections and
journeys, and echo the bow of
a ship or the ripple of a wave.
The colour palette reflects the
moana (sea) and whenua (land).
In support of the brand refresh, we
undertook additional community
surveys to gauge awareness
of Port of Tauranga and its
activities, especially in community
investment.
We also asked our people about
their experiences as employees
of Port of Tauranga.
Port of Tauranga’s business strategies focus on the issues that
matter most to our stakeholders, and the ones that we can influence
the greatest.
We have a wide range of
stakeholders (anyone who is
impacted by Port of Tauranga
activities) including customers,
the community, iwi and hapū,
suppliers, partners, investors
and employees.
In 2021, we engaged an
independent expert to consult
our team members and external
parties about the “material issues”
most likely to impact the way Port
of Tauranga creates (or erodes)
value. More than 50 stakeholders
were asked to rank economic,
environmental and social concerns
based on their importance, as well
as Port of Tauranga’s ability
to make the biggest impact.
The issues
These are the material issues that
Port of Tauranga stakeholders
most want us to focus on:
Health, safety and wellbeing
Encouraging a positive health,
safety and wellbeing culture,
where incidents are prevented and
wellbeing is proactively managed.
Resilient port capacity
and expansion
Growth in cargo volumes, keeping
ahead of demand through
resilient operations, innovation
and automation, shipping lane
widening/deepening, extending
wharves and adding capacity.
Customer experience and trust
Foster enduring partnerships with
a diverse range of customers by
supporting a strong customer-
centric workplace culture.
Governance, leadership
and ethics
Strong governance supporting
strategy delivery, sound operations
and transparent business practices.
Senior management engagement
with workforce, building teamwork
and recognising performance.
Biodiversity protection
Protecting water quality, marine
biodiversity and habitats through
responsible stewardship, including
stormwater management.
References to the relevant material
issues and their links to our
strategies are outlined in each of
the Capital sections in this report.
This was the second survey we
have undertaken and we intend
to repeat the consultation during
the 2024 financial year in order
to ensure we are still focusing
on the areas that matter most to
our stakeholders. The discussion
helps inform our business
strategies and resource allocation.
The feedback also helped us
shape our purpose, vision and
value statements in 2021, and the
refresh of our brand strategy over
the past year that has culminated
in the launch of a new logo and
supporting assets.
We have a wide range of
stakeholders including customers,
the community, iwi and hapū,
suppliers, partners, investors
and employees.
“
”
21
20
Port of Tauranga Limited – Integrated Annual Report 2023

MANAGING RISKS AND OPPORTUNITIES:
Managing
risks and
opportunities
Port of Tauranga’s risk management framework gives us the tools
to assess, monitor and manage risks, including those related
to climate change.
Our risks are continuously
evolving and are discussed in-
depth regularly by the senior
management team and Board of
Directors. All identified risks are
assessed on their likelihood and
impact, and are rated pre-
and post-mitigation.
Our strategic risks include:
• Loss of social licence to operate
or community support
• Poor health and safety
performance
• Loss of key customer(s)
or markets, and/or increased
competition
• A vessel foundering in the
channel
• Biosecurity failure
• Human capital disruption,
e.g. labour shortages, industrial
relations breakdown, loss of
key personnel
• Regulatory reform affecting
the supply chain
• Infrastructure failure, including
from a significant natural disaster
or by a supplier such as KiwiRail
• Geopolitical pressures, global
pandemics or otherwise
disrupted supply chains
• Cybersecurity failure
• Project failure
• Poor financial management
or subsidiary/associated
company poor performance
• Climate change, including
increased severe weather events
disrupting operations.
We regularly test our emergency
preparedness, often involving
external agencies and
first responders. Our crisis
management policy, procedures
and processes are reviewed by
independent experts.
We have also sought external
assurance on our strategies
involving resource consent
applications, project structure
and governance, and health and
safety management in a multi-user
environment.
Climate-related disclosures
New Zealand’s new climate-
related disclosures framework
intends to ensure climate change
impacts are actively considered by
businesses, including in investment
decisions. Companies such as
Port of Tauranga are required to
demonstrate accountability and
foresight in relation to climate-
related risks and opportunities.
The aim is for smarter, more
efficient allocation of capital in the
transition to a more sustainable,
low-emissions economy.
Port of Tauranga has enlisted the
assistance of external experts in
preparing to report under the new
framework in August 2024.
Climate change adaptation
Climate change adaptation is
key to our aspiration to deliver
long-term value for our investors
through leading environmental
and ethical performance, business
resilience and sound financial
management. Our response
to climate change is also part
of our vision to protect and
enhance our natural environment,
and to invest in technology and
embed sustainable practices
throughout our business.
We continue to adapt our policies,
processes and practices for a
low-carbon, climate change-
resilient future. Climate change
risk management is being
incorporated into our enterprise
risk management system.
Emissions targets
Port of Tauranga is committed
to reaching net zero greenhouse
gas emissions by 2050 and aims
to reduce emissions intensity
(CO
2
e per cargo tonne) by at least
5% per year.
We do not underestimate
the significant amount of work
required to meet these targets.
Work is currently underway to
review our short term emissions
reduction targets and ensure that
these are both science aligned
and aligned with our net zero
emissions 2050 target.
We have been measuring and
reporting on Scope 1, 2 and
key Scope 3 greenhouse gas
emissions since 2017. We utilise
the Toitū Envirocare framework
and our reported emissions
are audited annually using the
carbonreduce programme
certification. Our emissions
management and reduction plan
is currently undergoing its regular
review by Toitū in order to ensure
it remains relevant and credible.
Our intention to introduce fully
electric automated stacking cranes
at our container terminal will have
a material impact on greenhouse
gas emissions by reducing diesel
use in straddle carriers – our
largest single source of Scope 1
emissions.
Strategic approach and
governance
Port of Tauranga’s response to
climate change is the responsibility
of the entire organisation –
the Board of Directors, senior
management team, extended
leadership team and employees.
Our corporate governance
structure ensures accountability
and strategic oversight of our
response to climate change.
The scope of the Board’s Audit
Committee has been widened
to monitor and oversee Port of
Tauranga’s implementation of,
and compliance with, the new
Climate Related Disclosures
(CRD) legislation.
Preparations for 2024
In preparation to meet
the upcoming regulatory
requirements, we have several
streams of work under way.
While we have already identified
physical and transition risks,
mitigations, controls and
opportunities at a high level,
we have engaged external
expertise to develop this further
in order to meet the reporting
requirements of the new CRD
regime. We have engaged
specialist consultants OnePointFive
and Tonkin & Taylor to assist in
identifying and measuring both
physical and transition risks,
scenario planning and developing
science-aligned targets.
We are confident we will be able
to meet the new requirements and
the expectations of our investors
and other stakeholders.
Port of Tauranga Limited – Integrated Annual Report 2023
23
22

Improving
community
wellbeing
Our relationships
CAPITAL:
Material issues
addressed by
our strategies
Iwi engagement
Community engagement
Community investment
Responsible supply chain
Economic contribution
Port of Tauranga has built long-term, mutually beneficial relationships
with a diverse range of customers, communities and business partners.
We share information in order to help us plan for the future in a way that
best meets the needs of all our stakeholders.
In the following pages, we describe our progress in pursuing our relationship
strategies. We have lent our support and name to the new Port of Tauranga
Rescue Centre for surf lifesaving operations across the region. We have
extended our long-term freight agreement with one of our biggest
customers, Kotahi. And we have worked with iwi and hapū to improve
the health of Te Awanui Tauranga Harbour.
Vision
We will improve our
community’s wellbeing by
providing jobs and economic
growth, as well as forming
effective partnerships
to pursue a shared vision
of success. We will recognise
and respect the mana whenua
of the rohe and acknowledge
the kaitiakitanga of iwi
and hapū.
We will improve our community’s
wellbeing by providing jobs and
economic growth, as well as forming
effective partnerships to pursue
a shared vision of success.
“
”
Port of Tauranga Limited – Integrated Annual Report 2023
25
24

Partnerships with
Māori focus
on education
Port of Tauranga is committed
to improving the lives of young
Māori through education and
provides tertiary scholarships
under two schemes.
In 2023, the Port provided 18
scholarships to first, second and
third year students.
The Turirangi Te Kani Memorial
Scheme has been going for more
than three decades, since it was
established in honour of a much-
respected kaumatua with strong
links to the Port.
The Port also provides scholarships
through Ngā Mātarae Charitable
Trust. The Trust was founded
eight years ago to fund initiatives
to improve harbour health (read
more on page 44).
Port of Tauranga participates
in the Toi Ki Tua summer internship
programme facilitated by Toi Kai
Rawa Trust. The summer 2023
programme saw 13 Māori tertiary
students return home for the summer
for jobs in the kiwifruit industry.
Port of Tauranga is also sponsoring
Kia Maia Ellis in her PhD research
on pēpi kōura (baby red rock
lobster) and their resilience to
climate change.
The project involves creating
monitored settlement sites around
the port for the red rock lobsters
in their puerulus or post-larval stage.
Kotahi extends commitment
to Timaru
Kotahi, New Zealand’s largest
containerised freight manager, has
committed to a further export cargo
volume agreement with Timaru
Container Terminal to 2030.
The agreement delivers confidence
in stable ocean freight services for
South Canterbury exporters and
enables investment in maintenance
and upgrades at the Port of
Tauranga’s South Island facility
for the next eight years.
Timaru Container Terminal has
played a key role in the resilience
of the South Island’s ocean freight
network. Kotahi has committed
to providing up to 180,000
TEU for the six year agreement,
commencing 1 August 2024.
The agreement is an extension
of a 10 year cargo volume deal
that commenced in 2014. It is
expected to avoid approximately
18,000 long-haul road and rail
round trips annually.
Port of Tauranga has cargo volume
agreements with key customers
such as Kotahi, Zespri International
and Oji Fibre Solutions.
CAPITAL: OUR RELATIONSHIPS
• Long-term freight
agreements in place with
major shippers such as
Kotahi, Oji Fibre Solutions
and Zespri International
• 18 Tertiary scholarships
awarded to Māori students
• Ruakura Inland Port
joint venture
with Tainui Group Holdings,
opened in August 2023
• 1,500+ people hosted
on port tours
• Extension of Kotahi
cargo volume
commitment through
Timaru Container Terminal
Foodbank Christmas appeal
gets Port boost
Port of Tauranga’s $15,000
Christmas donation to the
Tauranga Community Foodbank
was enough to cover a month’s
worth of grocery costs for
the charity.
Rising food prices have hit the
foodbank hard, at the same time
as increasing demand.
The Port’s relationship with the
foodbank has spanned 13 years. It’s
a cause that is strongly supported
by team members, who also collect
food and household items for the
foodbank’s Christmas appeal.
Port of Tauranga’s tradition of
Christmas giving began after one
of the Port’s customers suffered
a factory fire. Instead of giving
Christmas gifts to clients that year,
the Port donated to a welfare fund
for the factory workers.
In addition to the annual foodbank
donation, team members can also
nominate a local charity to receive
a $5,000 Christmas donation from
the Port.
In 2023, the chosen cause was
Homes of Hope, a Tauranga
charity that provides foster care
for local children who have
experienced trauma, with
a special emphasis on keeping
siblings together.
Tauranga Community Foodbank chairwoman Barb Thompson with
Leonard Sampson. Photo: Bay of Plenty Times
KPIs
Kotahi Chief Executive David Ross (left)
and Port of Tauranga Chief Executive
Leonard Sampson.
Port of Tauranga Limited – Integrated Annual Report 2023
27
26

CAPITAL: OUR RELATIONSHIPS
Case study
Port of Tauranga
Rescue Centre opens
in Mount Maunganui
The then Prime Minister Jacinda Ardern officially opened the new
Port of Tauranga Rescue Centre at Mount Maunganui in November 2022.
The new centre in Golf Road is an
operations hub for the 19 surf life
saving clubs of the eastern region
of the North Island, from Hot
Water Beach on the Coromandel
Peninsula to Gisborne. It is also
the new home of the Mount
Maunganui Bridge Club, which
has had clubrooms on the site
since the 1970s.
The base has been purpose-built
for the many volunteers and staff
that do an extraordinary job in
keeping people safe on the beach
and in the surf. The centre will
support first responders in any
large-scale search and rescue, and
is a storage facility for specialist
rescue equipment.
Port of Tauranga Chief Executive,
Leonard Sampson, says the 1,300
sqm building is a tangible way for
the Port to deepen its connections
to the communities living along
the east coast.
“Many Port people volunteer for
surf life saving clubs in the region,
as well as for vital organisations
such as Tauranga Volunteer
Coastguard,” he says.
Port of Tauranga is also
a supporter of the Tauranga
Volunteer Coastguard, including
sponsoring its weather update
broadcasts and contributing
to a new 14-metre rescue vessel.
Port of Tauranga has a long history
of helping to fund other community
infrastructure in the Bay of Plenty.
Past examples include the Bay
Oval cricket ground floodlights,
walking tracks on Mauao (the
mountain at the entrance to
Tauranga Harbour) and the
Pilot Bay boardwalk at Mount
Maunganui. The Port also funded
the purchase of a specialist rescue
winch on board the Aerocool
Rescue Helicopter.
Council and agency representatives at the official opening.
Port of Tauranga Limited – Integrated Annual Report 2023
29
28

Our people

Nurturing
our people
CAPITAL:
Material issues
addressed by
our strategies
Health, safety and wellbeing
Employee engagement
and capacity
Governance, leadership
and ethics
Diversity and inclusion
Border stewardship
Port of Tauranga aims to recruit talented people, nurture them, retain them
and recognise their achievements. Our positive health and safety culture
proactively manages and mitigates risks. We deal with any challenges,
emergencies or crises with thorough planning, preparation and practice.
Our wellbeing programme, ShipShape, promotes the physical, mental,
emotional and financial wellbeing of our team members.
In the following pages, we describe our progress in pursuing our strategies
around people, wellbeing and safety, including our support of tripartite
industry initiatives.
Vision
We will be an attractive
and accessible workplace
where talent is nurtured.
Our people will be proud
to work here and know
their contribution is valued.
We will foster a culture
of empowerment, where
health and safety is at
the forefront of everything
we do.
We will foster a culture
of empowerment,
where health and safety
is at the forefront of
everything we do.
“
”
Port of Tauranga Limited – Integrated Annual Report 2023
31
30

CAPITAL: OUR PEOPLE
Gender diversity
by years of service
Port of Tauranga signs up for SafePlus review
Port of Tauranga is utilising
the SafePlus programme to
independently assess health
and safety practices on site as
part of the Port’s continuous
improvement approach.
SafePlus is a new toolkit for
businesses, jointly developed by
WorkSafe New Zealand, ACC and
the Ministry of Business, Innovation
and Employment. It is made up
of 10 fundamental performance
requirements adapted from
international best practice, covering
leadership, worker engagement
and risk management.
As part of our inaugural SafePlus
assessment, all team members, the
senior management team and Board
Directors were surveyed in March.
The survey found the organisation
has effective safety governance
and leadership, with senior leaders
creating an environment of trust
and continuous improvement.
The survey also identified areas for
improvement, including reviewing
the processes used to assess risk
management controls, ensuring
operational workers are involved
in decision-making and managing
work-related stress and fatigue.
The independent reviewer is now
examining indepth four focus
areas. The audit will be repeated
every two to three years.
Collaboration to improve industry
safety performance
Port of Tauranga has taken
a lead role in cross-industry
collaboration to address safety
issues at New Zealand ports.
The General Manager Health and
Safety, Pat Kirk, chairs the Port
Industry Association, which has
been involved in tripartite work with
unions and regulators on challenges
such as fatigue management.
The Port Industry Association’s
role was recognised with the
Leadership Award in the 2023
Safeguard New Zealand Workplace
Health and Safety Awards.
Pat Kirk is also an industry
representative on the Port Health
and Safety Leadership Group, helping
shape and implement a multi-year
port sector insights and action plan.
Port of Tauranga is also working
with Maritime NZ to ensure visiting
international vessels meet our
safety standards. One area of focus
is the safety compliance of pilot
ladders. Each ladder is inspected
on arrival and departure, and
our pilots and launch crews are
empowered to prevent boarding or
disembarking if they feel the ladder,
or any other equipment, is unsafe.
ShipShape wellbeing programme
reaches gold standard
Port of Tauranga’s popular health
and wellbeing programme,
ShipShape, has been awarded
gold accreditation five years after
it was launched.
The programme operates under
the Toi Te Ora Public Health unit’s
WorkWell accreditation scheme.
A committee of team members
from across the business runs
events and shares information
to boost physical, mental and
financial wellbeing.
Recent initiatives include vegetable
seedling giveaways, money
management and nutrition
seminars, skin checks, group bike
rides, a beach clean up, free yoga
classes, on site massages, free fruit
and inspirational speakers.
ShipShape also funds sports
teams, internal competitions and
challenges, often in partnership
with local and national charities.
Port of Tauranga provides a free,
confidential employee assistance
programme through Vitae. The
Port team can access health
insurance, free health assessments,
annual flu vaccinations, free period
products, financial advice and an
exercise membership subsidy.
Employee feedback survey sees positive results
Port of Tauranga team members
were asked for their feedback
in March as part of our ongoing
monitoring of employee
experiences.
The survey was last undertaken
in 2020. This year, internal
facilitators hosted post-survey
workshops to understand the data
in more detail, and identify short-
and long-term initiatives to address
any concerns within teams and
across the wider business.
Areas for follow-up include learning
and development opportunities,
increasing engagement and
empowerment, and improving
systems and processes.
Survey participants shared positive
feedback about the Port’s new
Intranet, which has helped
facilitate information sharing
across the business.

Staff turnover
7.0%
compared with 11.5% in 2022,
and 9.6% in 2021
Job vacancies
filled internally
26%
compared with 44% in 2022,
and 57.8% in 2021

Gender diversity
22%
percentage female compared with
22% in 2022, and 19% in 2021
Total Recordable
Injury Frequency Rate
4.5
(Port of Tauranga employees)
compared with 0 in both 2022
and 2021
Total Recordable
Injury Frequency Rate
20.7
per million hours worked
(Port of Tauranga employees
and contractors combined)
compared with 26.7 in 2022,
and 13.8 in 2021
KPIs
Social media audience
39%
increase
Gender diversity
by division
Gender diversity
by age
0
20
40
60
80
100
120
140
160
Female
46-5041-4536-4031-3526-3021-2516-2011-156-100-5
0-5
6-10
11-15
16-20
21-25
26-30
31-35
36-40
41-45
46-50
Male
Female
0
20
40
60
80
100
120
140
160
CorporateFinanceTerminalPropertyCommercial
Male
Female
0
20
40
60
80
100
120
140
160
78 and over59-7743-5827-42Under 26
Male
Female
Port of Tauranga Limited – Integrated Annual Report 2023
33
32

The Port farewells
a popular member
of staff
Port of Tauranga’s popular and dedicated container terminal operations
manager, Grant Wilson, passed away suddenly in December after
a medical event.
Grant was known to many in the
industry after more than 18 years
at Port of Tauranga, and before
that five years as a shift manager
at Ports of Auckland.
Port of Tauranga Chief Executive,
Leonard Sampson, said Port
customers truly appreciated
Grant’s willingness to go the
extra mile and find solutions to
the many challenges faced at the
terminal in recent years.
“We greatly miss his positivity,
sense of humour and good
company, as well as his vast
and invaluable experience
in port operations.”
The Port Industry Association (PIA)
has launched an industry award
in Grant’s honour. The award,
to an individual who has made
an outstanding contribution
to the port industry, was awarded
for the first time at the PIA
conference in August.
Nominees can be anyone
currently or formerly employed
by a PIA member, no matter their
company, role or seniority.
The inaugural recipient was Adam
Harvey, Chief Operating Officer
at Napier Port. He was presented
with the award by Grant’s wife
Lois and son Josh.
CAPITAL: OUR PEOPLE
In memoriam
Port of Tauranga Limited – Integrated Annual Report 2023
35
34

Our aim is to reduce waste in
the supply chain and offer our
customers the most efficient
and environmentally-sound
option for their freight.
“
Our skills and knowledge
Providing
superior
customer service
CAPITAL:
Material issues
addressed by
our strategies
Customer experience
and trust
Resilient port capacity
and expansion
Geographic reach
Supply chain efficiency
Port of Tauranga’s integrated view of the supply chain is reflected in our
investments in other ports, inland freight hubs, cargo handling expertise,
transport operations and logistics services. Our aim is to reduce waste
in the supply chain and offer our customers the most efficient and
environmentally-sound option for their freight.
In the following pages, we describe how we use our skills, knowledge and
experience to set and pursue our strategies. In partnership with Tainui Group
Holdings, we have developed the Ruakura Inland Port near Hamilton to
enhance our service of the Upper North Island.
Vision
We will be driven by our
customers’ needs and
create innovative supply
chain solutions. We will
deliver on our promises,
provide superior service
and grow together.
”
Port of Tauranga Limited – Integrated Annual Report 2023
37
36

10
20
30
40
202320222021
CAPITAL: OUR SKILLS AND KNOWLEDGE
Working with regulatory agencies
Port of Tauranga works closely
with government agencies
and regulators to ensure the port
is a safe and secure workplace.
The Port team works with New
Zealand Police and Customs to stop
contraband entering New Zealand
and detect potential criminal activity
within the port gates.
Other agencies with a regulatory
role in border protection and
safety include the Ministry for
Primary Industries, WorkSafe,
Maritime NZ, the Tauranga
Harbourmaster (employed by the
Bay of Plenty Regional Council),
the regional Public Health Unit,
and the Transport Accident
Investigation Commission.
From mid-2024, Maritime NZ’s
Health and Safety at Work Act
designation will be extended
to cover the land side of New
Zealand’s 13 commercial ports.
Previously, Maritime NZ had
jurisdiction on board ships, while
WorkSafe had responsibility for
land-based operations.
The change was one of the
recommendations of the Port
Health and Safety Leadership
Group, in which Port of Tauranga
is an active participant. It is hoped
that having one primary regulator
will provide clarity for the multiple
organisations and workers
operating in port environments.
The Leadership Group has
developed a multi-year plan to
improve safety following the deaths
of two port workers in Auckland
and Lyttelton early in 2022.
Productivity impacted by congestion
Port of Tauranga is looking
forward to improved productivity
following nearly three years of
congestion and delays caused
by disruption in the domestic
and global supply chain.
From September 2020, operational
problems at other ports and the
Covid-19 pandemic resulted in
ships arriving off schedule, often
in bunches and forced to wait
at anchor before berths became
available at Tauranga.
Surges in container volumes
put severe pressure on terminal
capacity and efficiency,
exacerbated by lack of available
rail capacity and labour shortages.
The Port mitigated the impacts of
congestion through surcharges
to incentivise smooth cargo flows
and avoid excess dwell time for
containers in the terminal.
Late in 2022, all New Zealand
ports agreed to reinstate berth
schedules from March 2023. By
reinstating adherence to proforma
windows and cargo exchange
volumes, Port of Tauranga has
been able to accurately predict
container volumes and match
resources, including labour, rail
and road transport.
Port of Tauranga is looking to
improve future resilience in the
supply chain through building
capacity in the form of a berth
extension at the container
terminal, which is currently
awaiting an Environment Court
ruling on resource consent.
The Port’s capacity will also be
enhanced by plans to partially
automate container storage at
the terminal, and utilise the new
inland port at Ruakura as a cargo
aggregation point.
Coastal shipping is expected to
have an increasing role in the
national supply chain. Increased
coastal shipping supports New
Zealand’s decarbonisation goals
as it produces fewer greenhouse
gas emissions than land-based
transport, and allows shippers
to access the more efficient,
larger container vessels calling
only at Tauranga.
Supply chain integration
Port of Tauranga has a strong and
unique network of partnerships,
collaborations and associate
companies that make it ideally
placed on the path to a more
efficient and resilient national
supply chain.
As 50% shareholders in Northport
Limited, Port of Tauranga has
already approved plans for growth
and lobbied central Government
in support of constructing the rail
spur from the main trunk line to the
port. Our co-shareholder, Marsden
Maritime Holdings Limited, owns
180 hectares of industrial-zoned
land available for development
adjacent to Northport.
We provide links to international
big ship services to South Island
importers and exporters through
our partnership at PrimePort
Timaru. We own 50% of PrimePort
with Timaru District Holdings, the
local council’s property investment
arm, and operate the port’s
container terminal.
Port of Tauranga has a long-
established and efficient inland
port at Otahuhu in South Auckland,
MetroPort Auckland, and has strong
links to cargo handling and logistics
expertise through our subsidiary
and associate companies, Quality
Marshalling and Coda Group.
The newly opened Ruakura Inland
Port, developed in partnership with
Tainui Group Holdings, serves to
further enhance Port of Tauranga’s
national networks. Read more
about this significant development
on the following page.
KPIs
Container crane rate
(moves per hour)
5,000
10,000
15,000
20,000
25,000
30,000
35,000
202320222021
Average cargo ship
gross tonnage
0.5
1.0
1.5
2.0
2.5
202320222021
Average turn-around time
per cargo ship (days)
Ruakura Inland Port.
Port of Tauranga Limited – Integrated Annual Report 2023
39
38

The $60 million facility has
been more than 15 years in
development by Tainui Group
Holdings, the commercial entity
of the Waikato-Tainui iwi.
Case study
“
”
CAPITAL: OUR SKILLS AND KNOWLEDGE
Ruakura Inland Port
opens for business
Ruakura Inland Port has opened for business in the heart of the Waikato
region in a game changer for the Upper North Island supply chain.
The nine hectare cargo facility on
Hamilton’s eastern boundary is
linked by rail with Port of Tauranga
and welcomed its first trains in
early August. It will eventually grow
to cover up to 30 hectares.
The $60 million facility has been
more than 15 years in development
by Tainui Group Holdings (TGH),
the commercial entity of the
Waikato-Tainui iwi, and will be
operated for at least 50 years in a
joint venture with Port of Tauranga.
Tainui Group Holdings Chief
Executive, Chris Joblin, said the
inland port’s opening marked
an exciting new opportunity for
importers and exporters, especially
in the Waikato and Bay of Plenty
regions.
“This is a big step towards
reducing greenhouse gas
emissions from the Upper North
Island supply chain. It gives
importers and exporters the option
to move away from the previously
ubiquitous round-trip, road-based
journeys, towards more rail-based
one-way movements for cargoes,”
Mr Joblin said.
Recent modelling commissioned by
the joint venture from independent
supply chain experts has confirmed
potential cost savings of up to 30%
for cargo owners using rail from
Ruakura Inland Port – compared to
the round-trip, road-served transport
model from Hamilton to Tauranga
and Auckland.
Initially, two trains a week, each
capable of carrying around 90
containers will call at Ruakura
Inland Port. Train calls will then
be increased to match demand,
as businesses move into the
adjacent Ruakura Superhub.
These include the 40,000 sqm
Kmart Distribution Centre due
to open in September, and new
cold storage facilities operated by
shipping line Maersk (16,000 sqm)
and Big Chill (13,000 sqm).
Port of Tauranga Chief Executive,
Leonard Sampson, says partnering
with TGH to operate the inland port
has delivered strategic infrastructure
which will amplify the connectivity
of the Port’s existing facilities.
“By combining Port of Tauranga’s
expertise in developing and
operating ports, with the deep
regional connections of TGH and
the scale and efficiency of the
Ruakura location, we can deliver
more value for our regions and
customers,” he says.
Quality Marshalling Ltd (a 100%
owned subsidiary of Port of
Tauranga) will manage physical
operations at the inland port. The
joint venture expects to handle
around 40,000 TEU through the
inland port in the first year of
operations.
Port of Tauranga Limited – Integrated Annual Report 2023
40
41

Our environment
Protecting
our natural
environment
CAPITAL:
Material issues
addressed by
our strategies
Biodiversity protection
Biosecurity
Air and water quality
management
Managing greenhouse
gas emissions
Local impacts
Climate action
Port of Tauranga protects air and water quality through dust suppression,
stormwater management and spill prevention. We support industry efforts
to reduce fumigant use, while ensuring the port community is vigilant
for biosecurity incursions. We choose energy efficient equipment where
possible, eliminate waste through recycling, and seek to reduce our
greenhouse gas emissions across all areas of our business.
In the following pages, we describe our progress in pursuing our environmental
and climate change strategies. We have reduced greenhouse gas emissions,
improved air quality and invested in the biodiversity of the harbour.
Vision
We will protect and
enhance our natural
environment. We will
invest in technology
and embed sustainable
practices throughout
our business.
We choose energy efficient
equipment where possible,
eliminate waste through recycling,
and seek to reduce our greenhouse
gas emissions across all areas
of our business.
“
”
Port of Tauranga Limited – Integrated Annual Report 2023
43
42

-10%
-5%
0
5%
10%
202320222021
-10%
-5%
0
5%
10%
202320222021
CAPITAL: OUR ENVIRONMENT
100%
compliance with
all stormwater quality
standards
16.1%
reduction in downwind
measured dust (PM
10
) adjacent
to the port boundary from
2020 to 2022
5.8%
reduction in
greenhouse gas emission
intensity since 2017
Total greenhouse
gas emissions
Greenhouse gas emission intensity
(emissions per cargo tonne)
Port-funded
trust invests in
harbour health
The Ngā Mātarae Charitable Trust
brings together iwi organisations
and Port of Tauranga to invest in
the health of Te Awanui Tauranga
Harbour.
The Trust was established eight
years ago to balance the impact
on the cultural and spiritual values
of local iwi and hapū from the
harbour capital dredging project
completed in 2016. The Trust
brings together Ngāi Te Rangi,
Ngāti Ranginui and Ngāti Pūkenga
iwi, the Port, the Mauao Trust
and the Tauranga Moana Iwi
Customary Fisheries Trust.
The Trust is funded through an
annual grant from the Port, with
the money used to sponsor
organisations and projects that
improve harbour health.
Projects funded by the Trust
so far include:
• A pipi research project
undertaken by Manaaki
Te Awanui Charitable Trust,
to restore and enhance
coastal ecosystems
• Purchase of a research and
monitoring vessel for Manaaki
Te Awanui
• Restoration of wetlands adjacent
to the Whetu-O-Te-Rangi marae
of local iwi Ngāti Pūkenga, in
Welcome Bay, to provide a
habitat for native flora and fauna
• Restoration of wetlands adjacent
to the Judea Rugby Club, which
have historically been used as an
informal dump.
The Trust is also helping to fund
a major wetland restoration project
being undertaken by Tauranga City
Council, Bay of Plenty Regional
Council and Ngai Tamarawaho hapū.
The Kopurererua Stream Fish
Habitat Project will re-establish
habitats in the lower stream and
adjacent Koromiko wetland, which
flows into Tauranga Harbour
through the Waikareao Estuary.
The project is expected to
improve flood and erosion control,
improve water quality and protect
biodiversity, especially of fish and
bird species.
Port of Tauranga, through Ngā
Mātarae Trust, has provided nearly
$100,000 to the Kopurererua
Stream project.
The Trust also funds a number
of tertiary scholarships for Māori
students.
Minimising dust
to improve air quality
Pollution monitors on the port
boundary show a dramatic
improvement in air quality
since 2019.
This improvement includes
reductions in sulphur dioxide
and dust. Port of Tauranga has
undertaken a range of initiatives
to reduce airborne dust. Vacuum
sweeper trucks collect dust and
debris from the wharves, and
concrete barriers have been
installed to keep traffic and heavy
equipment on more frequently
swept roadways.
Collected dust and debris is
recycled, with bark from export logs
composted into garden products.
Close to two kilometres of wind
fences encourage any airborne
dust to settle on the ground,
where it can be swept up. The
Port also enforces wind limits on
handling potentially dusty cargoes.
A recent report for the Toi Te Ora
Public Health unit identified air
quality improvements since 2019,
just before Mount Maunganui
industrial zone was designated
a ‘polluted air shed’. The study
showed a reduction in fine
dust (PM
10
), with annual PM
10

concentrations on a port boundary
reducing by 15% since 2019, and
annual levels of PM
2.5
reducing
35% in the three years to 2022.
In addition, the introduction of
mandatory low sulphur shipping
fuels in early 2020 has had a major
impact on improving air quality by
reducing sulphur dioxide.
Port of Tauranga has recently
agreed to help fund some
of the air quality monitoring
in the industrial area to enable
Bay of Plenty Regional Council
to introduce supplementary
air sensors into nearby
residential areas.
The Council is posting
real-time air quality indicators
on its website
3
. The 12 new
sensors, while not as accurate
as the monitors in the industrial
area, are designed to detect
particulate matter, including salt-
laden air, as well as NO
2
(nitrogen
dioxide), which is also generated
from petrol and diesel vehicles.
3
https://www.boprc.govt.nz/environment/air/mount-maunganui-residential-air-quality
KPIs
Port of Tauranga Limited – Integrated Annual Report 2023
45
44

Greenhouse gas emissions
reduction continues
Port of Tauranga’s total
greenhouse gas emissions (CO
2
e)
reduced 7.3% for the year ended
30 June 2023.
The decrease was primarily due
to a reduction in the emissions
associated with the MetroPort
rail service as freight volumes
decreased. Other reductions
include waste disposed to landfill
and increased recycling.
Emissions associated with diesel
consumption, primarily in the
straddle carrier and marine fleets,
remained steady.
The Port’s emission intensity
metric (tonnes of CO
2
e per cargo
tonne) has also reduced, by 3.8%
compared with the previous
financial year. Emissions intensity
has reduced by 5.8% compared
with the 2016-2017 base year.
Further decarbonisation
opportunities being pursued
include the introduction of
automation in the Tauranga
Container Terminal and the
purchase of additional hybrid
straddle carriers. Opportunities
for alternative fuel use are also
being investigated.
Protecting
water quality
Port of Tauranga has a range
of defences to prevent pollutants
being washed into Te Awanui
Tauranga Harbour.
The Port has installed multiple
screen chambers on stormwater
drains on both sides of the
harbour, and remote activated
shut off valves can be deployed
to contain accidental spills in
key high risk areas. Stormwater
treatment infrastructure has been
upgraded and fine tuned.
Port of Tauranga regularly monitors
water and sediment quality, testing
for contaminants such as heavy
metals, petroleum hydrocarbons
and suspended solids.
Preventing
biosecurity failures
Fumigation is an important tool to
protect New Zealand’s biodiversity
and its safe use is a big concern
for Tauranga residents.
More than 80% of all the logs
exported through Port of Tauranga
are required to be fumigated,
either in the ship’s hold or on
the wharf just prior to loading, in
order to meet the phytosanitary
requirements of New Zealand’s
trading partners.
The fumigant used on the wharf
is methyl bromide, an ozone-
depleting chemical, while
phosphine is used in ships’ holds.
Port of Tauranga insists that
recapture technology is utilised on
100% of methyl bromide fumigations
and the Environmental Protection
Agency has recently introduced
stricter rules around concentration
levels and exclusion zones.
In recent years, methyl bromide
use has also been drastically
reduced by the use of de-barking.
De-barking logs off site greatly
reduces the amount of pre-
shipment fumigation required,
as well as reducing log debris
being deposited on the wharves
and potentially impacting air or
stormwater quality.
Forestry exporters have invested
heavily in de-barking technology
in recent years. Approximately
20% of all logs are now de-barked
before arriving at Port of Tauranga.
CAPITAL: OUR ENVIRONMENT
Endangered birds find
refuge at port
Threatened shore bird species
have found refuge at Port of
Tauranga.
Adjacent to the container terminal,
the Port’s sand pile – material
dredged during maintenance
of shipping channels – attracts
New Zealand dotterels and variable
oystercatchers to nest.
It has also become a resting place
for bar-tailed godwits, who fly
every year non-stop from their
breeding grounds in Alaska, a trip
that takes approximately a week.
The dredged sand is usually
used to replenish local beaches
or recycled into roading projects
but is now left undisturbed
between the months of
September to April when the
birds are in residence or nesting.
Partners in biosecurity excellence
Port of Tauranga is part of an
award-winning biosecurity
excellence partnership with the
Ministry for Primary Industries,
Kiwifruit Vine Health, primary
produce organisations, scientists
and local government.
The partnership aims to build
a port community prepared
to prevent any pest incursions
through the port. Port users are
educated on what to look for
and how to respond if they see
evidence of bugs.
The partnership publishes an
annual calendar and other
educational material featuring the
top 12 unwanted pests, and runs
an annual Biosecurity Week to
raise awareness.
Port of Tauranga also supports
the Tauranga Moana Biosecurity
Capital initiative, which seeks to
raise pest awareness throughout
the wider western Bay of Plenty
community.
The Port is a signatory to the
Bioscurity Business Pledge, which
now has more than 350 New
Zealand businesses in its network.
Members share knowledge
and collaborate on proactive
biosecurity management.
Port of Tauranga Limited – Integrated Annual Report 2023
47
46

We are planning a berth
extension and automation
project, taken delivery of a new
pilot boat, and await the delivery
of our next tranche of hybrid
straddle carriers.
Our assets and infrastructure
Driving
national
prosperity
CAPITAL:
Material issues
addressed by
our strategies
Resilient port capacity
and expansion
Geographic reach
Cyber and data security
Port of Tauranga has invested in capacity to accommodate bigger ships
and cater for New Zealand cargo growth. In the six years to 2016, we spent
more than $350 million to prepare for larger vessels, including dredging,
wharf extensions and new ship-to-shore cranes.
In the following pages, we describe the next stage of growth and
capacity-building. We are planning a berth extension and automation
project, have taken delivery of a new pilot boat, and await the arrival
of our next tranche of hybrid straddle carriers.
Vision
New Zealanders will
value the port as an asset
that drives our nation’s
prosperity by providing
the most efficient access
to global trade.
“
”
Port of Tauranga Limited – Integrated Annual Report 2023
49
48

-6%
-4%
-2%
0
2%
4%
6%
202320222021
CAPITAL: OUR ASSETS AND INFRASTRUCTURE

Increase in total TEUs
Lower carbon supply chain
utilising bigger ships
Port of Tauranga offers
shippers a lower carbon supply
chain through its ability to
accommodate the largest
container vessels to visit
New Zealand.
In the six years to 2016, Port of
Tauranga invested heavily in capacity
expansion for larger vessels,
including deepening and widening
shipping channels and expanding
cargo storage and handling facilities.
Bigger ships have better fuel
efficiency and produce fewer
emissions per container and,
especially when combined with
rail, offer a significantly lower
carbon supply chain over a typical
container journey.
As average ship sizes continue
to grow, Port of Tauranga has
expansion plans under way that
will allow it to accommodate
more vessels at once.
The Port intends to extend its
container wharves by converting
existing cargo storage land into an
additional berth and enable three
large vessels to be serviced at once.
The container terminal’s oldest
ship-to-shore crane has recently
been dismantled to make way
for a new, larger crane due for
delivery in January 2024.
As part of its decarbonisation
strategy, Port of Tauranga also
plans to introduce fully electric
automated stacking cranes inside
the terminal, to increase the
number of containers that can be
stored and handled on site.
The automated container stacks
will be served by hybrid straddle
carriers.
The Tauranga Container Terminal
is linked by rail to the Port’s newly
opened inland port near central
Hamilton, developed in partnership
with Tainui Group Holdings.
The inland port is part of the
new Ruakura Superhub freight
and logistics complex.
Forum addresses
infrastructure deficit
A new business forum aims
to address the significant
infrastructure deficit in Tauranga
and the Bay of Plenty.
The Western Bay of Plenty
Infrastructure Forum was officially
launched at Port of Tauranga
in April in the presence of the
Minister of Finance, Grant
Robertson. The forum brings
together the Port, economic
development organisations,
business associations, property
developers, transport operators
and other businesses.
The forum has proposed a ten-
point action plan
4
for housing,
transport, port capacity,
decarbonisation and attracting
talent. The plan includes
infrastructure development at the
port and seeks long-term funding
agreements for regional roading.
Tauranga has seen a 72%
population increase since 2000
and regional GDP growth is one
of the fastest in the country.
The launch follows last year’s
release of the Waikato and Bay of
Plenty Freight Action Plan involving
partners including the Port, the
economic development agencies
for both regions, transport
companies and shippers. The
report predicted freight growth
of between 45 and 65% between
2020 and 2030.
The report recommended
increasing the capacity of the
freight network, including links
to Auckland, and a separate study
to assess the resilience of the
existing critical networks, including
the Kaimai Tunnel.
The case for State
Highway 29
A key initiative being championed
by the Western Bay of Plenty
Infrastructure Forum is to
prioritise investment in the State
Highway 29 Tauriko bypass.
The forum chair, Nigel Tutt of the
economic development agency
Priority One, says the development
is needed urgently to unlock
housing, transport and economic
• New pilot launch,
the Troy Evans, delivered
via sea from Melbourne
• Four new hybrid straddle
carriers on order
To Rotorua & Taupō
To Hamilton & Auckland
Tauriko
Pāpāmoa
Mount
Maunganui
Sulphur
Point
Te Puke
Apata
Te Puna
TAURANGA
Welcome Bay
Greerton
Aongatete
3
5
4
9
2
2
1
7
8
2
2
2936
Takitimu North Link
road complete
Bayfair to Baypark interchange
road complete
Papamoa East Interchange
complete
29A
Port of Tauranga berth
extension complete
2
Rangiuru
Tauriko temporary connections
complete, bypass under construction
To the world
Tauranga Moana Infrastructure Map
- 2033 Vision
6
development in New Zealand’s
fastest-growing city.
“State Highway 29 is a chokepoint,”
he says. “It is stopping the full
potential of housing, manufacturing,
transport, decarbonisation and
exporting from being realised. It is
also a vital piece of infrastructure
investment in regional and national
resilience for our economy and
supply chains.”
The current proposed timeline for
the project is 27 years, which the
forum says is untenable. The route
is a key road transport corridor
for the Port, connecting it to the
Waikato region.
More hybrid straddles
to join fleet
Port of Tauranga has ordered
four new hybrid straddle carriers
as part of its ongoing investment
in a more fuel-efficient
equipment fleet.
The new Kalmar straddles will
be delivered later this year and
will join the existing three hybrid
models purchased in 2020, which
have proved to be around 25%
more fuel efficient than the Port’s
other, diesel-electric models and
40% more efficient than the oldest
models in the fleet.
The container terminal has also
taken possession of eight second-
hand straddles from Lyttelton Port.
They are being used to replace
some of the oldest, less efficient
models and for spare parts.
One of the main sources of
the company’s greenhouse gas
emissions is diesel use by straddle
carriers, so fuel consumption is
a constant target for reduction.
Port of Tauranga’s container
terminal is the largest in the
country and has more than 50
straddle carriers.
4 https://www.priorityone.co.nz/wp-content/uploads/Infrastructure-Action-Plan.pdf
300
600
900
1200
1500
202320222021
KPIs

Ship visits
300
600
900
1200
1500
202320222021
‘000 TEUs

Total TEUs
Port of Tauranga Limited – Integrated Annual Report 2023
51
50

New pilot
launch arrives at
Port of Tauranga
Port of Tauranga has taken delivery of a state-of-the-art new pilot launch,
the Troy Evans.
The 17.55 metre vessel has
a top speed of around 30 knots,
is self-righting and able to handle
all weather conditions. It has
a raft of other safety features,
including a hydraulic person
overboard platform.
The Troy Evans has a beak bow,
which cuts through waves rather
than riding over them, improving
fuel efficiency. It is powered by
Volvo D16 750hp engines, with
two 17” Doen water jets.
It has a composite hull and was
built by Hart Marine in Melbourne.
The Troy Evans has been named
after the late Port of Tauranga pilot
and tug master. Troy passed away
in late 2021 after a long battle with
Parkinson’s.
Troy was part of the team at Port
of Tauranga for 10 years and
worked on many special projects,
including the purchase of our two
tugs, Tai Pari and Tai Timu. He
gained international attention
and accolades in his quest for safer
piloting, including widespread
adoption of his industry-first
drawings of compliant trapdoor
pilot ladder arrangements.
One of the last projects that
Troy worked on was scoping the
purchase of the new pilot launch
now named in his honour.
Troy’s family, including his wife
and two daughters, joined Troy’s
colleagues to welcome the new
vessel in May. The Port’s entire
marine fleet, plus the Port’s
very first pilot launch Tauranga,
escorted the Troy Evans into the
harbour with a water cannon
salute.
The Port’s 13-year-old and 16.5
metre Arataki pilot launch will
be retained as a back-up and
Te Awanui, at 24 years old,
will be used for survey work.
CAPITAL: OUR ASSETS AND INFRASTRUCTURE
Case study
Port of Tauranga Limited – Integrated Annual Report 2023
52
53

Our finances
Delivering
long-term
value
CAPITAL:
Material issues
addressed by
our strategies
Financial performance
Capital base
Shareholder returns
Supply chain efficiency
Port of Tauranga provides sustainable shareholder returns through revenue
growth from diverse income streams and we are always seeing new
customers and cargoes. Through our cornerstone shareholder Quayside
Holdings, we share the financial benefits of the Port’s success with the
residents and ratepayers of the Bay of Plenty.
In the following pages, we outline our progress in pursuing our economic
strategies, as well as sharing our financial statements of performance.
We welcomed the return of cruise ships to the Bay of Plenty following
the Covid-19 pandemic, and helped lower regional rates bills.
Vision
We will deliver long-term
value for investors through
leading environment
and ethical performance,
business resilience
and sound financial
management.
We will deliver long-term
value for investors through
leading environment and
ethical performance, business
resilience and sound financial
management.
“
”
Port of Tauranga Limited – Integrated Annual Report 2023
55
54

$20M
$40M
$60M
$80M
$100M
$120M
202320222021
$NZ Million
$5M
$10M
$15M
$20M
202320222021
$NZ Million
5c
10c
15c
20c
202320222021
Cents per share
CAPITAL: OUR FINANCES
Port’s presence boosts
regional economy
Port of Tauranga is a key driver
of the economies of Tauranga,
the wider Bay of Plenty and New
Zealand as a whole, providing
hundreds of thousands of jobs
and business opportunities.
The port’s presence has helped
boost regional GDP growth well
above the national average in
recent years. Since 2000, the
population has grown 72%,
compared with the national
increase of 32%. Tauranga’s GDP
has increased by 142%, while New
Zealand’s GDP has increased 82%.
The latest economic report by the
region’s economic development
agency, Priority One, shows that
the Bay of Plenty economy has
remained relatively resilient amid
the slowing domestic and global
economy, although there has
been a slight decrease in average
heavy traffic movements in the
April to June quarter compared
with previous years.
The Port is banking on more
businesses moving to the Waikato
and Bay of Plenty regions as land
shortages and costs in South
Auckland continue to bite.
This year, Winstone Wallboards
is relocating its manufacturing
from Auckland to a purpose-
built factory at Tauriko in
Tauranga. Imports of gypsum for
manufacture into plasterboard
began in December 2022.
Group Net Profit After Tax
($)
Subsidiary and Associate Earnings
($)
Port profits
subsidise rates bills
Port of Tauranga is listed on the
New Zealand Stock Exchange,
with just over 54% of shares
owned by the region’s ratepayers
through Bay of Plenty Regional
Council’s investment arm,
Quayside Holdings.
In the past decade, Port of
Tauranga has returned to Quayside
around $720 million in dividends
from port profits. The council uses
its dividends to subsidise rates
bills, at the current rate of around
$350 per household per year.
Port of Tauranga also directly
sponsors a number of community-
based projects and events across
the region’s arts, sports, education
and business sectors.
They include the newly-opened
Port of Tauranga Rescue Centre,
a regional hub for surf live saving
activities.
The company also sponsors the
Port of Tauranga National Jazz
festival, held every Easter for the
past 60 years, and is a founding
gold sponsor of the long-running
Tauranga Arts Festival.
Group revenue
($)

Earnings per share
Dividends
(cents per share)
$100M
$200M
$300M
$400M
$500M
202320222021
$NZ Million
5c
10c
15c
20c
202320222021
Cents per share
KPIs
Port of Tauranga Limited – Integrated Annual Report 2023
57
56

Cruise ships return
to Bay of Plenty
after hiatus
The first cruise ship of the 2022-2023 summer season made its first call
in New Zealand at Port of Tauranga in October.
The Majestic Princess arrived
from Tahiti at 5.30am and her
pre-dawn arrival did not deter
a number of locals from
witnessing it.
The Majestic Princess, with more
than 3,500 guests on board, was
the first passenger vessel to visit
Port of Tauranga since all cruise
ships were banned from New
Zealand waters in March 2020, as
the Covid-19 pandemic escalated.
That summer, the Port had
seen 106 visits and was on track
to match the previous record
summer of 116 visits in 2018/2019.
However, the closure of New
Zealand borders to international
visitors cut the season short
and no cruise ships called in the
subsequent two and a half years.
Port of Tauranga Chief Executive,
Leonard Sampson, said on the eve
of the Majestic Princess’ arrival
that he was delighted to welcome
cruise ships again.
“Cruise ship passengers are an
important source of revenue for
the Bay of Plenty and Waikato
tourism industries, which really
suffered during the pandemic,”
he said.
“They are also a spectacular sight
for locals as they enter and depart
Te Awanui Tauranga Harbour.”
Tauranga residents can often be
seen picnicking on Pilot Bay beach
or occupying a vantage point
on Mauao to watch arriving and
departing vessels.
According to Tourism Bay of
Plenty, the coastal Bay of Plenty
has typically enjoyed the country’s
second-highest share of cruise
passenger spending, behind
Auckland. It’s estimated that the
last full summer cruise season
in 2018–2019 contributed $89
million to the region’s economy.
The largest cruise ships to regularly
call at Tauranga can carry up to
4,900 passengers, plus around
1,300 crew.
Port of Tauranga hosted 88 cruise
ships over the 2022–2023 summer,
with at least 110 passenger vessels
already booked to visit in the coming
season, commencing in October.
CAPITAL: FINANCES
Case study
Port of Tauranga Limited – Integrated Annual Report 2023
59
58

J C Hoare
BCom, FCA, CMInstD
CHAIR, INDEPENDENT DIRECTOR
Julia Hoare joined the Board in August
2015 and took over the Chair in
August 2022. She has a wide range
of commercial, financial, tax, regulatory
and sustainability expertise developed
from both her extensive governance
roles and over the course of two
decades as a partner with PwC.
Julia is Deputy Chair of The a2 Milk
Company Limited*, and a Director of
Auckland International Airport Limited,
Comvita Limited and Meridian Energy
Limited. She is also a Director of Port
of Tauranga Trustee Company Limited,
Northport Limited and PrimePort
Limited. Julia is a Member of the Chapter
Zero New Zealand Steering Committee.
*Retired 30 June 2023.
J B Stevens
LLB, FCILT (Fellow Chartered Institute
of Logistics and Transport)
INDEPENDENT DIRECTOR
Brodie Stevens is the former Swire
Shipping/China Navigation Company
Country Manager. A trained lawyer,
he joined Freightways Group as a
management trainee in 1982 and was
National Marketing Manager for Post
Haste before joining Owens Group.
He was Divisional General Manager
of Seatrans New Zealand and Owens
Shipping Services before joining
China Navigation Company (trading
as Swire Shipping) in 2004. During
his tenure, the company expanded
into freight forwarding, shipping
agency and stevedoring. Brodie is
currently a Director of Chatham Island
Shipping Limited. He joined the Board
in August 2022.
Board
of Directors
D J Bracewell
INDEPENDENT DIRECTOR
Dean Bracewell has deep transport
and logistics industry experience. He
was a former Managing Director for
Freightways, one of New Zealand’s
largest transport and logistics companies
for more than 18 years before embarking
on a governance career in 2018.
Currently Dean is a Director of
Air New Zealand Limited, Property
for Industry Limited, the Halberg Trust
and Tainui Group Holdings Limited.
He joined the Board in December 2021.
A R Lawrence
BCA (Business Admin)
INDEPENDENT DIRECTOR
Alastair Lawrence joined the Board in
February 2014 and took over the Chair
of the Audit Committee in August 2022.
Alastair is a very experienced corporate
advisor specialising in commercial
evaluation and strategy development.
He was a Director of private investment
bank Antipodes from 1998 to 2014.
Governance roles have included the
Takeovers Panel, Landcare Research
Limited, Coda GP and a number of
mid-market private companies.
D W Leeder
Doug Leeder is Chair of Bay of Plenty
Regional Council. He is a dairy farmer,
and has considerable experience in
governance and management. Doug
has held positions of governance in
Federated Farmers, was a Director and
Chair of Bay Milk Products, Director
of the East Bay Health Board, Chair of
Subsidiary East Bay Energy Trust, Chair
of NZ Dairy Group and Dairy Insight, and
Director of DEXCEL. Doug joined the
Board in October 2015.
Sir Robert A McLeod KNZM
LLB, BCom, FCA, CFInstD
Sir Robert McLeod joined the Board of
Quayside Holdings Limited in November
2016 of which he is Chair. Sir Robert is
also Chair of Quayside Securities Limited,
Quayside Properties Limited, NZX listed
Sanford Group and Ngati Porou Holding
Company Limited. He is a Director of
AZSTA NZ Limited, China Construction
Bank (New Zealand) Limited, MSJS NZ
Limited, Point 76 Limited, Point Guard
Limited, Point Seventy Limited, Real
Fresh Limited, Singita Holdings Limited,
Singita Investments Limited and VCFA
NZ Limited.
Sir Robert has been a past Board
Member at ANZ National Bank, Tainui
Group Holdings, Sky City Entertainment
Group and Telecom, and he was
Oceania (Australia, New Zealand and
Pacific Islands) CEO/Managing Partner
for the international accounting practice
of Ernst & Young and more latterly as
Ernst & Young New Zealand Chair,
a position from which he retired on
31 December 2015. In 2019 Sir Robert
was appointed Knight Companion of the
NZ Order of Merit.
Sir Robert joined the Board in
October 2017.
A M Andrew
BE Chemical & Materials
(1st Class Honours), MBA (Distinction),
FEngNZ, CMInstD
INDEPENDENT DIRECTOR
Alison Andrew is currently Chief
Executive of Transpower New Zealand,
having joined in 2014. She has held a
number of senior executive roles across
various industry sectors, most recently
as Global Head of Chemicals for Orica
PLC. She has also been a Director for
Genesis Energy. Prior to those roles,
she held a number of senior roles at
Fonterra Cooperative Group and across
the Fletcher Challenge Group in Energy,
Forests and Paper. Alison has a MBA
from Warwick University, and studied
Engineering (Chemicals and Materials)
at Auckland University. Alison joined
the Board in April 2018 and was recently
appointed Chair of the People and
Remuneration Committee in October
2022.
OUR BOARD
Port of Tauranga Limited – Integrated Annual Report 2023
61
60

Pat Kirk
GM Health and Safety
Pat joined the company in 2013
and the senior management team
in March 2020, reflecting the
importance of health and safety
to our ongoing success.
He has three decades of extensive
strategic and applied industry
health and safety experience
across a wide range of sectors.
Pat is Chair of the Port Industry
Association and a member of
various national health and safety
organisations, including the
WorkSafe/ACC National Industry
Prevention Working Group, the
WorkSafe/Maritime NZ Industry
Advisory Group (Port Sector)
and the Business Leaders’ Health
& Safety Forum.
Blair Hamill
GM Commercial
Blair oversees port operations,
customer services and new
business opportunities.
He joined the company in July
2020 after 20 years at Zespri
International, the world’s largest
kiwifruit marketer. Blair held a
variety of senior roles at Zespri,
including Global Commercial
Manager and Chief Global Supply
Officer.
Blair is a former chartered
accountant.
Leonard Sampson
Chief Executive
Leonard took over as Chief
Executive in July 2021 following
the retirement of Mark Cairns.
He was Port of Tauranga’s
Commercial Manager from 2013
to 2019, when he was appointed
Chief Operating Officer. Leonard
joined the company from KiwiRail,
where he was General Manager –
Sales. He also held senior roles at
Carter Holt Harvey and Mainfreight.
Dan Kneebone
GM Property and Infrastructure
Dan has overall responsibility
for both the property portfolio
and engineering interests of
the Port.
He joined the Port of Tauranga
senior management team
in January 2013. He was
previously National Property
and Development Manager
for Bunnings Limited and held
senior roles at Trans Tasman
Properties Limited, Fletcher
Property Limited and Simes
Limited.
Rochelle Lockley
GM Communications
Rochelle joined the Port of
Tauranga senior management
team in September 2020.
Rochelle, a former journalist,
held senior communications
roles in tourism and
telecommunications in New
Zealand and overseas before
establishing a communications
consultancy in 2005.
Melanie Dyer
GM Corporate Services
Melanie joined Port
of Tauranga’s senior
management team in August
2020 from Trustpower Limited,
where she was General
Manager, People and Culture.
Prior to joining Trustpower
in 2014, Melanie spent 11 years
at Hydro Tasmania.
Melanie has a Master’s Degree
in Organisational Development
and Leadership Studies.
Simon Kebbell
Chief Financial Officer
and Company Secretary
Simon was appointed Chief
Financial Officer of Port of
Tauranga in 2020. He has
been with the company since
2003 and was previously IT/
Finance Manager. He is a
Chartered Accountant and has
a First Class Honours Degree
in a Bachelor of Management
Studies.
Prior to joining Port of
Tauranga, Simon was
Manager – Internal Audit for
PricewaterhouseCoopers in
Singapore. He also held senior
positions at Ernst & Young in
Singapore and Auckland.
Senior
management
team
OUR SENIOR MANAGEMENT TEAM
Port of Tauranga Limited – Integrated Annual Report 2023
63
62

CONTENTS
Directors’ Responsibility Statement65
Independent Auditor's Report66
Consolidated Income Statement69
Consolidated Statement of Other Comprehensive Income70
Consolidated Statement of Changes in Equity71
Consolidated Statement of Financial Position72
Consolidated Statement of Cash Flows73
Reconciliation of Profit for the Period to Cash Flows From Operating Activities74
Notes to the Consolidated Financial Statements 75
Corporate Governance Statement summary106
Financial and operational five year summary118
Company directory120
Consolidated
Financial Statements
For the year ended 30 June 2023
Port of Tauranga Limited and Subsidiaries
The Directors are responsible for ensuring that the financial
statements give a true and fair view of Port of Tauranga Limited
(the Group) as at 30 June 2023.
The Directors consider that the financial statements of the Group
have been prepared using appropriate accounting policies,
consistently applied and supported by reasonable judgements
and estimates, and that all relevant financial reporting and
accounting standards have been followed.
The Directors are pleased to present the financial statements
of the Group for the year ended 30 June 2023.
The financial statements were authorised for issue for and
on behalf of the Directors on 24 August 2023.
..........................................................
Chair

..........................................................
Director
Directors’
Responsibility Statement
For the year ended 30 June 2023
Port of Tauranga Limited – Integrated Annual Report 2023
65
64
Consolidated Financial Statements for the year ended 30 June 2023

The Auditor-General is the auditor of Port of Tauranga Limited and its subsidiaries (the ‘Group’). The Auditor-General has appointed
me, Brent Manning, using the staff and resources KPMG, to carry out the audit of the consolidated financial statements of the Group
on his behalf.
Opinion
We have audited the consolidated financial statements of the Group on pages 69 to 105, that comprise the consolidated statement
of financial position as at 30 June 2023, the consolidated income statement, the consolidated statement of other comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and the notes
to the consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the
Group as at 30 June 2023, and its consolidated financial performance and its consolidated cash flows for the year then ended in
accordance with New Zealand equivalents to International Financial Reporting Standards and International Financial Reporting Standards.
Basis for our opinion
We conducted our audit in accordance with the Auditor-General’s Auditing Standards, which incorporate the Professional and Ethical
Standards and the International Standards on Auditing (New Zealand) issued by the New Zealand Auditing and Assurance Standards
Board. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated
financial statements section of our report. We are independent of the Group in accordance with the Auditor-General’s Auditing
Standards, which incorporate Professional and Ethical Standard 1: International Code of Ethics for Assurance Practitioners issued
by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our other ethical responsibilities in accordance
with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In addition to the audit we have carried out engagements in the area of Agreed Upon Procedures, which are compatible with those
independence requirements. Other than the audit and these engagements, we have no relationship with or interests in the Group
or any of its subsidiaries.
Key audit matters
Key audit matters are those matters, that, in our professional judgement, were of most significance in our audit of the consolidated
financial statements in the current period. We summarise below those matters and our key audit procedures to address those matters
in order that the shareholders as a body may better understand the process by which we arrived at our audit opinion. Our procedures
were undertaken in the context of and solely for the purpose of our statutory audit opinion on the consolidated financial statements
as a whole and we do not express discrete opinions on separate elements of the financial statements.
The key audit matterHow the matter was addressed in our audit
Value of property, plant and equipment
Refer note 10 of the financial statements.
The Group has property, plant and equipment (“PP&E”)
of $2,607 million.
The Group has a policy of valuing land, buildings, wharves,
hardstanding and harbour improvements (“Revalued PP&E”)
at fair value. Full Independent valuations are obtained at least
every 3 years (by an independent valuer) over these asset
classes.
In the current year, the fair value of land was revalued by
an independent valuer.
Buildings, wharves and hardstandings and harbour
Improvements were assessed for material movements
in their fair values.
The Revalued PP&E is considered a key audit matter due
to the judgement involved in the assessment of the fair value
and the material value of PP&E on the balance sheet.
Our procedures focused on the appropriateness of the Group’s
assessment as to whether the carrying values of Revalued PP&E
materially represent their fair values, and if a revaluation of
a class of asset was required, that the revalued assets have been
accurately reflected in the financial statements.
For land we have:
– Assessed the competence and objectivity of the valuer used;
– Assessed the methodology applied by the valuer and assessed
whether the valuation approach was in accordance with
professional valuation standards and suitable for determining
the fair value of identified assets;
– Compared the asset holdings in the fixed asset register to those
valued to ensure all relevant property was captured;
– Compared the key assumptions within each assessment
to market evidence;
– Assessed the reasonableness of valuation movements between
financial years with consideration to broader sector/local
market evidence (where available); and
– Assessed whether the increase in valuation was correctly
accounted for within the Revaluation Reserve and Statement
of Comprehensive Income.
The key audit matterHow the matter was addressed in our audit
Value of property, plant and equipment (continued)
For buildings, wharves, hardstandings and harbour improvements
we have:
– Assessed the competence and objectivity of the valuers
or experts used by the Group;
– Compared and recalculated the valuer’s fair value assessment
against publicly available data (including relevant price indices);
and
As a result of the above procedures, we are satisfied the carrying
value of property, plant and equipment is reasonable and
supportable. We are also satisfied with the adequacy of disclosures.
Impairment of investment in Equity Accounted Investees
Refer note 14 of the financial statements.
The Group has a 50 percent investment in Coda Group Limited
Partnership which is accounted for as an equity accounted
investee.
The investment in Coda Group Limited Partnership was tested
for impairment at 30 June 2023 which involved determining
the recoverable amount of the investment, being the higher
of fair value and value in use.
An impairment of $7.9 million was recognised.
This is considered to be a key audit matter due to the judgement
involved, including:
– forecasting future performance; and
– selecting relevant assumptions such as EBITDA multiples
and the weighted average cost of capital (WACC)
Our audit procedures included:
– Assessing whether the methodology for impairment testing
adopted by the Group is inline with the applicable financial
reporting standards.
– Engaging our internal valuation specialists to review the
approach to determining the recoverable amount and
challenge the assumptions adopted by the Group, including
but not limited to the WACC rate and EBITDA multiple.
– Performing retrospective analysis over the accuracy of previous
forecasts prepared by the Group.
– Preparing alternative scenarios for assumptions and comparing
these to the Group’s adopted assumptions.
– Assessing the adequacy and accuracy of the disclosures made
by the Group.
As a result of the above procedures, we are satisfied the
impairment recognised is reasonable and supportable. We are also
satisfied with the adequacy and accuracy of disclosures.
Other information
The Directors are responsible on behalf of the Group for the other information. The other information comprises the information
included on pages 1 to 65 and pages 106 to 121 of the Integrated Annual Report, but does not include the consolidated financial
statements and our auditor’s report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of audit
opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge
obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there
is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Directors’ responsibilities for the consolidated financial statements
The Directors are responsible on behalf of the Group for the preparation and fair presentation of the consolidated financial statements
in accordance with New Zealand equivalents to International Financial Reporting Standards and International Financial Reporting
Standards, and for such internal control as the Directors determine is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible on behalf of the Group for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative
but to do so.
The Directors’ responsibilities arise from the Financial Markets Conduct Act 2013.
Independent
Auditor’s Report
To the Shareholders of Port of Tauranga Limited
Port of Tauranga Limited – Integrated Annual Report 2023
67
66
Consolidated Financial Statements for the year ended 30 June 2023

Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Auditor-
General’s Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of shareholders taken on the basis of these consolidated financial statements.
As part of an audit in accordance with the Auditor-General’s Auditing Standards, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
• Conclude on the appropriateness of the use of the going concern basis of accounting by the directors and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the
Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures,
and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group
to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance
of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit
findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with the Directors, we determine those matters that were of most significance in the audit of
the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters
in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances,
we determine that a matter should not be communicated in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.
Our responsibilities arise from the Public Audit Act 2001.
Brent Manning
KPMG
On behalf of the Auditor-General
Wellington, New Zealand
24 August 2023
Port of Tauranga Limited and subsidiaries
Consolidated Income Statement
For the year ended 30 June 2023
Note
2023
NZ$000
2022
NZ$000
Total operating revenue
4
420,929375,288
Contracted services for port operations(98,975)(84,796)
Employee benefit expenses
5
(51,334)(46,790)
Direct fuel and power expenses(18,822)(14,494)
Maintenance of property, plant and equipment(15,497)(12,895)
Other expenses(25,960)(23,236)
Operating expenses(210,588)(182,211)
Results from operating activities210,341193,077
Depreciation and amortisation
10, 11, 12
(40,423)(36,657)
Impairment of property, plant and equipment on revaluation0(1,445)
(40,423)(38,102)
Operating profit before finance costs, share of profit from Equity Accounted Investees and taxation169,918154,975
Finance income
7
1,161287
Finance expenses
7
(20,522)(16,452)
Net finance costs
7
(19,361)(16,165)
Share of profit from Equity Accounted Investees
14(c)
16,61111,586
Impairment of investment in Equity Accounted Investees
14(b)
(7,871)0
8,74011,586
Profit before income tax159,297150,396
Income tax expense
8
(42,161)(39,079)
Profit for the period 1 1 7, 1 3 6111,317
Basic earnings per share (cents)
17
1 7. 416.5
Diluted earnings per share (cents)
17
1 7. 216.4
These statements are to be read in conjunction with the notes on pages 75 to 105.
Independent Auditor’s Report (continued)
Port of Tauranga Limited – Integrated Annual Report 2023
69
68
Consolidated Financial Statements for the year ended 30 June 2023

Port of Tauranga Limited and subsidiaries
Consolidated Statement of Other Comprehensive Income
For the year ended 30 June 2023
2023
NZ$000
2022
NZ$000
Profit for the period1 1 7, 1 3 6111,317
Other comprehensive income
Items that may be reclassified to profit or loss:
Cash flow hedge – changes in fair value*2,29315,165
Cash flow hedge – reclassified to profit or loss*(44)4,382
Share of net change in cash flow hedge reserves of Equity Accounted Investees209862
Items that will never be reclassified to profit or loss:
Asset revaluation*23,530625,137
Share of net change in revaluation reserve of Equity Accounted Investees16,81713,865
Total other comprehensive income42,805659,411
Total comprehensive income159,941770,728
*Net of tax effect as disclosed in notes 8 and 9.
Note
Share
Capital
NZ$000
Share-based
Payment
Reserve
NZ$000
Hedging
Reserve
NZ$000
Revaluation
Reserve
NZ$000
Retained
Earnings
NZ$000
Total
Equity
NZ$000
Balance at 30 June 202174,9202,412(11,358)1,253,1077 7, 8 871,396,968
Profit for the period0000111,317111,317
Other comprehensive income0020,409639,0020659,411
Total comprehensive income0020,409639,002111,317770,728
Decrease in share capital(37)0000(37)
Dividends paid during the period
16
0000(95,242)(95,242)
Equity settled share-based payment accrual
16
02,0210002,021
Shares issued upon vesting of Management Long
Term Incentive Plan
271(229)00(42)0
Total transactions with owners in their capacity
as owners
2341,79200(95,284)(93,258)
Balance at 30 June 202275,1544,2049,0511,892,10993,9202,074,438
Profit for the period00001 1 7, 1 3 61 1 7, 1 3 6
Other comprehensive income002,45840,347042,805
Total comprehensive income002,45840,3471 1 7, 1 3 6159,941
Decrease in share capital(72)0000(72)
Dividends paid during the period
16
0000(102,054)(102,054)
Equity settled share-based payment accrual
16
01,4630001,463
Shares issued upon vesting of Management Long
Term Incentive Plan
278(280)0020
Total transactions with owners in their capacity
as owners
2061,18300(102,052)(100,663)
Balance at 30 June 202375,3605,38711,5091,932,456109,0042,133,716
Port of Tauranga Limited and subsidiaries
Consolidated Statement of Changes in Equity
For the year ended 30 June 2023
These statements are to be read in conjunction with the notes on pages 75 to 105.These statements are to be read in conjunction with the notes on pages 75 to 105.
Port of Tauranga Limited – Integrated Annual Report 2023
71
70
Consolidated Financial Statements for the year ended 30 June 2023

Note
2023
NZ$000
2022
NZ$000
Assets
Property, plant and equipment
10
2,424,0902,392,996
Right-of-use assets
11
50,04539,367
Intangible assets
12
22,30523,008
Investments in Equity Accounted Investees
14
213,746186,050
Receivables and prepayments
15
18,89018,612
Derivative financial instruments
19
15,51411,957
Total non-current assets 2 ,744,5902,671,990
Cash and cash equivalents8,5067, 27 2
Receivables and prepayments
15
69,15261,901
Inventories1,9862,013
Derivative financial instruments
19
35350
Total current assets79,67971,536
Total assets2,824,2692,743,526
Equity
16
Share capital75,36075,154
Share-based payment reserve5,3874,204
Hedging reserve11,5099,051
Revaluation reserve1,932,4561,892,109
Retained earnings109,00493,920
Total equity2,133,7162,074,438
Liabilities
Loans and borrowings
18
290,77531 7, 47 2
Lease liabilities
11
51,95740,611
Derivative financial instruments
19
9,2427, 4 03
Employee benefits
5
1,5241,627
Deferred tax liabilities
9
116,388115,948
Contingent consideration302,688
Total non-current liabilities469,916485,749
Loans and borrowings
18
160,000125,000
Lease liabilities
11
955776
Derivative financial instruments
19
767
Trade and other payables
20
38,41238,979
Revenue received in advance2,9511,039
Employee benefits
5
4,3713,350
Income tax payable13,58213,760
Contingent consideration359368
Total current liabilities220,637183,339
Total liabilities690,553669,088
Total equity and liabilities2,824,2692,743,526
Net tangible assets per share (dollars per share)3.143.05
For and on behalf of the Board of Directors who authorised these financial statements for issue on 24 August 2023.
................................................. ....................................................
Chair Director
Port of Tauranga Limited and subsidiaries
Consolidated Statement of Financial Position
As at 30 June 2023
Note
2023
NZ$000
2022
NZ$000
Cash flows from operating activities
Receipts from customers412,568389,632
Interest received1,028156
Payments to suppliers and employees(205,027)(191,893)
Taxes paid(42,776)(35,526)
Interest paid(21,221)( 1 7, 1 20 )
Net cash inflow from operating activities144,572145,249
Cash flows from investing activities
Proceeds from sale of property, plant and equipment10933
Dividends from Equity Accounted Investees
14
19,52010,763
Purchase of property, plant and equipment(44,840)(21,345)
Purchase of intangible assets(582)(135)
Interest capitalised on property, plant and equipment(335)(102)
Investment in Equity Accounted Investees(21,450)(2,850)
Payment of contingent consideration(3,136)(488)
Total net cash used in investing activities(50,714)(14,124)
Cash flows from financing activities
Proceeds from borrowings35,339100,308
Dividends paid
16
(102,054)(95,242)
Repurchase of shares0(931)
Repayment of borrowings(25,000)(135,000)
Repayment of lease liabilities(909)(874)
Net cash used in financing activities(92,624)(131,739)
Net Increase/(decrease) in cash held1,234(614)
Add opening cash brought forward7, 27 27, 8 8 6
Ending cash and cash equivalents8,5067, 27 2
Port of Tauranga Limited and subsidiaries
Consolidated Statement of Cash Flows
For the year ended 30 June 2023
These statements are to be read in conjunction with the notes on pages 75 to 105.These statements are to be read in conjunction with the notes on pages 75 to 105.
Port of Tauranga Limited – Integrated Annual Report 2023
73
72
Consolidated Financial Statements for the year ended 30 June 2023

Note
2023
NZ$000
2022
NZ$000
Profit for the period1 1 7, 1 3 6111,317
Items classified as investing/financing activities:
Loss on sale of property, plant and equipment1038
1038
Add/(less) non-cash items and non-operating items:
Depreciation
10, 11
39,13735,330
Amortisation expense
12
1,2861,327
Impairment of property, plant and equipment on revaluation01,445
Decrease in deferred taxation expense
9
(434)(193)
Movement in derivative financial instruments taken to the income statement(38)(51)
Share of net profit after tax retained by Equity Accounted Investees
14(c)
(16,611)(11,586)
Impairment of Investment in Equity Accounted Investees
14(b)
7, 87 10
Change in the fair value of contingent consideration550117
Increase in equity settled share-based payment accrual1,4632,021
33,22428,410
Add/(less) movements in working capital:
Change in trade receivables and prepayments(8,112)1,483
Change in inventories27(1,004)
Change in income tax payable(178)3,748
Change in trade, other payables and revenue received in advance2,4651,257
(5,798)5,484
Net cash flows from operating activities144,572145,249
Port of Tauranga Limited and subsidiaries
Reconciliation of Profit for the Period to Cash Flows
from Operating Activities
For the year ended 30 June 2023
1 Company information
Reporting entity
Port of Tauranga Limited (referred to as the Parent Company), is a port company. The Parent Company carries out business
through the provision of wharf facilities, land and buildings, for the storage and transit of import and export cargo, berthage,
cranes, tugs and pilot services for customers.
Port of Tauranga Limited holds investments in other New Zealand ports and logistic companies.
The Parent Company is a company domiciled in New Zealand, and registered under the Companies Act 1993 and listed on the
New Zealand Stock Exchange (NZX). The Parent Company is a Financial Markets Conduct (FMC) reporting entity for the purposes
of the Financial Reporting Act 2013 and Financial Markets Conduct Act 2013. The financial statements comply with these Acts.
The financial statements of the Group for the year ended 30 June 2023 comprise the Parent Company and its Subsidiaries
(together referred to as the Group) and the Group’s interest in Equity Accounted Investees.
In accordance with the Financial Markets Conduct Act 2013, where a reporting entity prepares consolidated financial
statements, parent company disclosures are not required.
2 Basis of preparation
Statement of compliance and basis of preparation
These financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ
GAAP). These financial statements comply with New Zealand Equivalents to International Financial Reporting Standards (NZ
IFRS), and other applicable Financial Reporting Standards, as appropriate for Tier 1 for-profit entities. They also comply with
International Financial Reporting Standards.
The financial statements are prepared on the historical cost basis except for the following assets and liabilities which are stated
at their fair value: derivative financial instruments, land, buildings, harbour improvements, and wharves and hardstanding.
These financial statements are presented in New Zealand Dollars (NZ$), which is the Group’s functional currency. All financial
information presented in New Zealand Dollars has been rounded to the nearest thousand.
Significant accounting policies that are relevant to an understanding of the financial statements are provided throughout the
notes to the financial statements.
Accounting estimates and judgements
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the
application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ
from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting
policies that have a significant effect on the amount recognised in the financial statements, are detailed below:
• valuation of land, buildings, harbour improvements, and wharves and hardstanding (refer to note 10);
• valuation of derivative financial instruments (refer to note 19);
• impairment assessment of intangible assets (refer to note 12); and
• impairment assessment of investments in Equity Accounted Investees (refer to note 14).
Fair value hierarchy
Assets and liabilities measured at fair value are classified according to the following levels:
• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
• Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly
(prices) or indirectly (derived from prices).
• Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
Financial instruments
Financial assets – classification and subsequent measurement
On initial recognition, a financial asset is classified as measured at: amortised cost; Fair Value Through Other Comprehensive
Income (FVOCI) – debt investment; FVOCI – equity investment; or Fair Value Through Profit and Loss (FVTPL).
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for
managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period
following the change in the business model.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
• it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
• it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets; and
• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest
on the principal amount outstanding.
All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL.
This includes all derivative financial assets.
Port of Tauranga Limited and subsidiaries
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
These statements are to be read in conjunction with the notes on pages 75 to 105.
Port of Tauranga Limited – Integrated Annual Report 2023
75
74
Consolidated Financial Statements for the year ended 30 June 2023

Port of Tauranga Limited and subsidiaries
Notes to the Consolidated Financial Statements for the year ended 30 June 2023
Regular way purchases and sales of financial assets are recognised on trade date, being the date on which the Group commits
to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets
have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.
Financial liabilities – classification, subsequent measurement and gains and losses
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is
classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are
measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial
liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign
exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.
New and amended accounting standards adopted
There are no new or amended accounting standards and interpretations that are issued but not yet adopted that are expected
to have a material impact on the Group.
3 Segmental reporting
Operating segments
The Group determines and presents operating segments based on the information that is internally provided to the Chief
Executive, who is the Group’s Chief Operating Decision Maker (CODM).
The Group operates in three primary reportable segments, being:
• Port operations: this consists of providing and managing port services, and cargo handling facilities through the Port
of Tauranga, MetroPort and Timaru Container Terminal. The Port’s terminal and bulk operations have been aggregated
together within the Port Operations segment, due to the similarities in economic characteristics, customers, nature of
products and processes, and risks.
• Property services: this consists of managing and maintaining the Port’s property assets.
• Terminal services: this consists of the contracted terminal operations, general container marshalling and ancillary services
of Quality Marshalling (Mount Maunganui) Limited (Quality Marshalling).
The three primary business segments are managed separately as they provide different services to customers and have their
own operational and marketing requirements.
The remaining activities of the Group are not allocated to individual business segments. Due to the significant shared cost base
of the Port, operating costs, measures of profitability, assets and liabilities are aggregated and are not reported to the CODM at
a segmental level, but rather at a port level, as all business decisions are made at a “whole port level”.
The Group operates in one geographical area, that being New Zealand. During the year the Group received revenue from
two external customers which individually comprised more than 10% of total revenue. Revenue from these two customers is
included in Port Operations and accounts for 31% and 13% (2022: 29% and 13%) of total revenue.
The Group segment results are as follows:
2023
Port
Operations
Group
NZ$000
Property
Services
Group
NZ$000
Terminal
Services
Group
NZ$000
Unallocated*
Group
NZ$000
Inter
Segment
Group
NZ$000
Group
NZ$000
Revenue (external)381,1383 7, 31 11,43800419,887
Inter segment revenue325620,4950(20,754)0
Total segment revenue381,1413 7, 5 6721,9330(20,754)419,887
Other income and expenditure:
Share of profit from Equity Accounted Investees00016,611016,611
Impairment of investment in Equity Accounted
Investees
000( 7, 87 1 )0( 7, 87 1 )
Interest income0001,16101,161
Other income0001,492(450)1,042
Interest expense000(20,522)0(20,522)
Depreciation and amortisation expense00(1,050)(40,423)0(41,473)
Other expenditure00(16,831)(213,911)21,204(209,538)
Income tax expense00(1,133)(41,028)0(42,161)
Total other income and expenditure00(19,014)(304,491)20,754(302,751)
Total segment result381,1413 7, 5 672,919(304,491)01 1 7, 1 3 6
*Operating costs are not allocated to individual business segments within the Parent Company.
2022
Port
Operations
Group
NZ$000
Property
Services
Group
NZ$000
Terminal
Services
Group
NZ$000
Unallocated*
Group
NZ$000
Inter
Segment
Group
NZ$000
Group
NZ$000
Revenue (external)339,38332,9592,54300374,885
Inter segment revenue131018,7860(19,097)0
Total segment revenue339,38433,26921,3290(19,097)374,885
Other income and expenditure:
Share of profit from Equity Accounted Investees00011,586011,586
Interest income0002870287
Other income000853(450)403
Interest expense000(16,452)0(16,452)
Depreciation and amortisation expense00(929)(36,657)0( 3 7, 5 8 6)
Other expenditure00(15,909)(186,365)19,547(182,727)
Income tax expense00(1,259)( 3 7, 8 20 )0(39,079)
Total other income and expenditure00(18,097)(264,568)19,097(263,568)
Total segment result339,38433,2693,232(264,568)0111,317
*Operating costs are not allocated to individual business segments within the Parent Company.
4 Operating revenue
2023
NZ$000
2022
NZ$000
Revenue from contracts with customers
Container terminal revenue268,951239,333
Multi cargo revenue65,04363,445
Marine services revenue48,58239,148
382,576341,926
Other revenue
Rental revenue3 7, 31 132,959
Other income1,042403
Total operating revenue420,929375,288
PoliciesRevenue comprises the fair value of the consideration received or receivable for the sale of services in the
ordinary course of the Group’s activities. Standard credit terms are a month following invoice with any rebate
variable component calculated at the customers financial year end. Rebateable sales are eligible for sales
volume rebates. When the rebate is accrued, it is accrued as a current liability (rebate payable) based on
contracted rates and estimated volumes. For financial reporting purposes rebates are treated as a reduction
in profit or loss. Revenue is shown, net of GST, rebates and discounts. Revenue is recognised as follows:
• Container terminal revenue: relates to the handling, processing, storage and rail of containers. Contracts
are entered into with shipping lines and cargo owners. The primary performance obligations identified
include the load and discharge of containers (which include the services provided to support the
handling of containers). Container terminal revenue is recognised over time based on the number of
containers exchanged (an output method). This method is considered appropriate as it allows revenue
to be recognised based on the Group’s effort to satisfy the performance obligation. The transaction
price is determined by the contract and adjusted by variable consideration (rebates). Rebates are
based on container volume and the Group accounts for the variable consideration using the expected
value method. The expected value is the sum of probability weighted amounts in a range of possible
consideration amounts. The Group estimates container volumes based on market knowledge and
historical data.
2 Basis of preparation (continued)3 Segmental reporting (continued)
Port of Tauranga Limited – Integrated Annual Report 2023
77
76