A 31% decline in cruise ship visits in the six months to December 31 dented Port Otago’s bottom line and cut into the valuable economic benefits for Dunedin and the wider Otago region.
Port Otago just recently reported a half-year profit of $13.7 million, down 9% from the $15.2 million recorded for the same period in 2024-25.
The port handled just 18 vessel arrivals, compared with 26 in the corresponding period a year earlier.
Although profit was slightly lower than the previous year, the contribution from operating activities rose to $18.8 million, up 21% from $15.5 million, driven by higher revenue and stable operating costs.
On the revenue front, bulk cargo was the standout performer, with volumes rising 26%, largely driven by a 42% increase in log exports to more than 650,000 tonnes. Log exporters moved quickly to process windthrown trees from storm events, supported by steady demand from Chinese and Korean markets.
Container throughput held steady at 113,600 TEU, although full import and export volumes were 3% higher than in the same period of 2024-25.
Rental income from the Auckland, Hamilton, and Dunedin property portfolio rose 8% to $21.5 million.
The result included one-off gains of $2.0 million from property asset sales, down $4.4 million from the $6.4 million recorded in the same period a year earlier.
Port Otago’s assets topped 1 billion on December 31, 2025.
Looking ahead to the six months to June 30 this year, Port Otago chairman Tim Gibson said the outlook for container and log volumes was particularly positive.
“The wet spring and summer across our region have boosted grass growth, and we expect higher volumes of meat and dairy products to flow through our container terminal in the second half of the financial year.”
‘‘Meanwhile, our forestry customers continue working through the cleanup of windthrown trees, potentially resulting in a 10% greater volume through our Dunedin bulk port and Port Chalmers log yards.”
“Continued geopolitical uncertainty and impacts on trade lanes remain a disruption risk for New Zealand imports and exports, but we are prepared to adapt and change, so we can be always open,” Gibson added.