TASPORTS ANNUAL REPORT
2017–2018 TASPORTS ANNUAL REPORT 2017–2018
3 CEO MESSAGE
2 6 CHAIRMAN’S REPORT ABOUT US G R OW T H AND RENEWAL
9 16 TASPORTS’ PEOPLE MARINE SERVICES
12 P O R T S A N D INFRASTRUCTURE 42 FINANCIAL STATEMENTS
18 LOGISTICS CONTENTS
2 CHAIRMAN’S REPORT
3 CEO MESSAGE
5 TASPORTS CEO RETIRES
6 ABOUT US
7 WHERE WE OPERATE
8 TASPORTS’ FACTS
9 TASPORTS’ PEOPLE
10 GROWTH AND RENEWAL
11 KEY ACHIEVEMENTS
12 PORTS AND INFRASTRUCTURE
15 COMMUNITY ASSETS PROGRAM
16 MARINE SERVICES
18 LOGISTICS
20 BASS ISLAND LINE
20 SOUTHERN EXPORT TERMINALS
22 GOVERNANCE + THE BOTTOM LINE
24 BOARD OF DIRECTORS
26 CORPORATE LEADERSHIP
29 KEY RESULTS
30 FREIGHT STATISTICS
32 FREIGHT VOLUMES
34 COMMODITIES STATEWIDE
35 STATISTICS CHARTS
36 CORPORATE GOVERNANCE DISCLOSURES
38 BUY LOCAL AND PAYMENT OF ACCOUNTS GUIDELINES
42 FINANCIAL STATEMENTS
FRONT COVER IMAGE: TASPORTS COMMUNITY ASSET, STRAHAN. 1 TASPORTS ANNUAL REPORT 2017–2018
CHAIRMAN’S REPORT
Stephen Bradford, Chairman
At TasPorts, we are vigorously and renewing our fleet of tugs, pilot also needs to be strategic. That is building our business for the future, launches and workboats. I am very why TasPorts further progressed for the benefit of everyone in our pleased that this year saw yet more its Port Master Plan project this beautiful island state of Tasmania. progress against our 10 Year Fleet year. Towards the end of the The Board and the Management are Renewal Program. Hobart’s towage financial year, the Board approved delivering on this important goal by fleet was boosted with the purchase these detailed and strategic port successfully pursuing an ambitious of Z-drive tug, Mount Florance. plans which will deliver a guide for strategy of growth and renewal. Hobart’s pilot vessel fleet was also development and investment across For the third year in a row strengthened with the arrival of the our ports over the next 15 years, TasPorts delivered a profit. This year new $2.7 million state-of-the-art pilot including the four major ports of TasPorts reported a consolidated cutter, Kelly. Burnie, Hobart, Devonport and Bell net profit of $5.8 million, comprised The story of our wholly-owned Bay. The Port Master Plan, which of a trading profit of $9.0 million for subsidiary Bass Island Line (BIL) will be released in the next financial TasPorts, and losses of $3 million was also one of growth and renewal year, will support existing customer for Bass Island Line and $200,000 this year. In May, BIL introduced a growth and attract new customers for Southern Export Terminals. new, bigger and faster vessel, John and trade across Tasmania. That follows a profit in 2016-2017 Duigan, to service the freight needs Finally, I want to thank my fellow of $4.8 million for TasPorts (with a of King Island. BIL also expanded its Directors, the Chief Executive Officer consolidated after tax profit of $3.2 route, moving from a transhipment Paul Weedon, the Management Team million after the loss of $1.7 million service between Devonport and and all TasPorts staff. It has been for Bass island Line). In 2015-2016 Grassy to a weekly service linking another impressive year of work, the TasPorts profit was $1.5 million. Geelong in Victoria, Grassy on King facilitating trade for the benefit of TasPorts’ story of profit growth is Island and mainland Tasmania. Tasmania. very satisfying. It is no exaggeration By renewing the fleet and sailing to say that TasPorts is now on a very directly from mainland Australia for firm financial footing. the first time, BIL is setting itself on a Developing our business and growth pathway and supporting the delivering for our customers and growth of King Island businesses. STEPHEN BRADFORD stakeholders also means growing Of course, growth and renewal Chairman
2 CEO MESSAGE
Paul Weedon, Chief Executive Officer
Over this past financial year, TasPorts The cruise industry grew again people we employ and the people we has been on an impressive growth with 125 cruise ships carrying serve. That is why we are investing to path. This is a reflection of the strong 245,265 passengers and 100,971 crew enrich our culture and develop our Tasmanian economy and the planning, calling at ports around the state this people. We also finalised a five-year leadership and hard work of TasPorts. year. TasPorts’ investment in port integrated Safety and Environmental Our commitment to growth is infrastructure supported this with Strategy during the financial year. ambitious. We’re working to double improved capacity for larger cruise The strategy defines four key the size of the business by 2022-2023 vessels. objectives – and this financial year marked another The marine business continued to (i) Achieve a fit for purpose risk significant step in that direction. develop positively with new tugs and and compliance program Profits were up again this year, with a pilot launches delivered into service which enables us to meet our consolidated net profit of $5.8 million. through the year to support increased regulatory obligations and a This represents an 80% increase in ship calls into the state’s ports. best practice standard consolidated profit compared to the The logistics side of the business (ii) Embed a culture of prevention previous financial year. saw strong growth in forestry. At Bell and care Our focus on growth is being Bay, the export of containerised logs (iii) Prioritise environmental delivered across three pillars of the increased. At Burnie, the bulk export sustainability in our business business: ports and infrastructure, log trade grew by a further 10% to and marine services and logistics. more than 500,000 tonnes. A total (iv) Enhance communication In ports and infrastructure we of 1.45 million tonnes of product was and engagement related to worked with major customers – Toll, exported through the Burnie Chip safety and environmental TT Line, SeaRoad and the Australian Export Terminal. In Hobart, export sustainability to maintain our Antarctic Division to develop volumes grew again at Southern social licence to operate. port infrastructure solutions to Export Terminals (SET), our joint TasPorts remained firmly committed accommodate their plans for larger venture operation with Qube Ports, to its safety culture throughout vessels. We also continued to drive our as SET expanded its operation from the year, delivering improved plans for a new international container one customer to four. results across the company. Hazard terminal at Burnie to bring direct liner At the end of the day none of this identification and injury management shipping services to and from Asia. would happen, or matter, without the initiatives delivered a 20% increase
3 TASPORTS ANNUAL REPORT 2017–2018
in hazard reporting and a 34% (EPA) approved incineration process. a refresh of our organisation’s decrease in injuries compared to TasPorts implemented a new vision and values, a leadership last financial year. There were also Crisis and Emergency Management development program, a capability improvements in risk management, Framework (CEMF) to deliver an and development framework, and including the development of efficient and effective response to establishment of an organisational effective risk mitigation solutions for emergency and crisis situations. change framework. existing and new operational risks. This is in line with TasPorts’ absolute Thank you to each and every We continued the roll out of ‘Care commitment to managing risk and TasPorts employee for your Factor’, a cognitive behaviour-based safeguarding our people, property dedication, commitment and hard safety-training program. Progressive and stakeholders affected by work during another productive year. improvements were made in unplanned events that may occur And thank you to our customers workplace hazard inspections, safety on our sites. and stakeholders for working with interventions and timely responses to The TasPorts People and Culture us. TasPorts remains committed to incident reporting and investigations. Strategy 2019-2021 was developed our purpose of facilitating trade for In line with our commitment and endorsed this year. The strategy the benefit of Tasmania. But our to doing business in a safe and identifies three key people-related ambitions have never been greater: environmentally responsible manner, objectives which include enriching to ensure the vitality of our state’s TasPorts is leading in its program our culture; investing in the economy, support our enviable way to remove and replace stocks development of our people; and of life in Tasmania and serve as the of firefighting foam containing creating people strategies which state’s tradelink to the world. perand poly-fluoralkyl substances enable the future success or our (PFAS). We are now well advanced business. The strategy outlines in replacing firefighting foam with initiatives which will positively impact fluorine free foam and disposing the experience of our people, and obsolete foams through an our culture. These initiatives include PAUL WEEDON Environment Protection Authority a culture and engagement program, CEO TasPorts
4 TASPORTS CEO RETIRES
Shortly after the end of the 2017- in a strong position as a result of his “With the release of the Port Master 2018 financial year, TasPorts Chief time at the helm of the company for Plan and knowing that TasPorts is Executive Officer, Paul Weedon, eight years. now on an impressive growth path, announced his decision to retire. “I would like to acknowledge this feels like the right time for me Mr Weedon’s decision followed the Paul’s considerable contribution to retire,” Mr Weedon said. release of the TasPorts Port Master during his tenure as CEO and “TasPorts is in a very strong Plan in August 2018. The Port Master to thank him for guiding the position thanks to the efforts Plan will guide investment of more organisation through often of everyone who works for the than $200 million in Tasmania’s ports challenging times,” said TasPorts company.” over the next 15 years. Chair Stephen Bradford. TasPorts Chief Operating Officer, Mr Weedon – who retired in Mr Weedon said it had been an Anthony Donald, is acting as CEO September 2018 – leaves TasPorts honour to serve as CEO of TasPorts. following Mr Weedon’s departure.
5 TASPORTS ANNUAL REPORT 2017–2018
ABOUT US
Objectives and direction
WHO WE ARE In addition, we maintain Our Brand – TasPorts will be Tasmanian Ports Corporation Pty community-use waterfront assets in recognised by our employees, Ltd (TasPorts) is a state-owned Sullivans Cove, Stanley, Inspection stakeholders and the community as company responsible for eleven Head, Strahan and King Island. a customer focused, reputable and Tasmanian ports and the Devonport socially responsible organisation. Airport. We run a diverse range CORPORATE INTENTIONS of operations across the state Our Safety and Environmental TASPORTS’ VALUES with the purpose of facilitating Commitment – TasPorts is Our corporate intentions are trade for the benefit of Tasmania, committed to conducting its supported by a set of values that through the commercial provision business activities in a safe and guide employees to achieve agreed of infrastructure and services. environmentally responsible manner. business objectives. Our Community Assets – TasPorts • Protect the health and safety of WHAT WE DO will maintain assets for the benefit employees and others affected TasPorts is responsible for the of the community. by operations. management and maintenance Our Assets – TasPorts will manage • Provide customers with a of essential port infrastructure in and develop our commercial assets responsive and quality service. Tasmania. This includes forestry for the benefit of customers and • Be trustworthy and honest. terminal operations in Burnie, Bell stakeholders. • Act fairly in all dealings. Bay and Hobart and all associated Our Commercial Focus – TasPorts • Have courage to do the right thing. infrastructure at Devonport will be a financially sustainable • Respect for individuals. Airport as well as maintenance of business with a focus on profitability port berths, channels, wharves, and productivity to ensure we Through our values and aligned landside assets, marine fleet and are responsive to changes in our business objectives, TasPorts aims to: key navigational aids. markets. • Protect and support an engaged TasPorts ensures the safe control Our Customers – TasPorts will deliver workforce. and security of all major ports and a safe, efficient and reliable service • Exceed customer expectations. delivers critical pilotage services as that meets the current and emerging • Rise to challenges presented by well as provision of towage, slipway trade and business needs of our external market influences. and refuelling facilities, supply of customers. • Continue to deliver on key floating plant and equipment for Our People – TasPorts will invest in infrastructure developments and marine engineering projects, and the development of our people to operational requirements to meet construction and coastal haulage. deliver value-added outcomes for our customers’ needs. customers and stakeholders.
6 WHERE WE OPERATE
CURRIE
GRASSY
LADY BARRON
STANLEY
PORT LATTA DEVONPORT AIRPORT BURNIE BELL BAY
DEVONPORT INSPECTION HEAD
STRAHAN
HOBART
MAJOR PORTS
COMMUNITY PORTS
CARGO PORTS
AIRPORT
MANAGED PORT
7 TASPORTS ANNUAL REPORT 2017–2018
TASPORTS’ FACTS
2017–2018
2,400+ TOTAL SHIP movements annually 15+ MILLION TONNES moved through TasPorts
12 TASMANIAN PORTS: 11 seaports & 1 airport 5 10 36 P I LOT WORK BOATS VESSELS L AU N C H E S in the 4 TasPorts fleet 9 BA R G E S T U G S 8 PUNTS 110+ MARINE ASSETS maintained by TasPorts
38 OVER 3.1M commercial SQUARE METERS OF LAND, shipping BUILDINGS AND OTHER BUILT BERTHS INFRASTRUCTURE ASSETS owned by TasPorts 140 TOTAL AIR OVER AMBULANCE FLIGHTS at Devonport Airport 320 this year TENANTED PROPERTIES AND RECREATIONAL BERTHING SPACES Total QantasLink managed by TasPorts FLIGHTS AT DEVONPORT AIRPORT 2,686
8 TASPORTS’ PEOPLE
Some finer details about the people behind TasPorts
287 TOTAL STAFF
MARINE...... 107 FULL TIME...... 209 OPERATIONAL...... 84 CASUAL...... 59 PROFESSIONAL...... 56 PART TIME...... 19 SUPPORT...... 40
9 TASPORTS ANNUAL REPORT 2017–2018
2017–2018: A YEAR OF G R OW T H A N D RENEWAL
10 KEY ACHIEVEMENTS
Growth and Renewal in 2017–2018
Top 3 commodities in tonnes: 1.WOODCHIPS 3,193,803 TOTAL FREIGHT 2.GENERAL CARGO VO LU M E S 1,670,557 grew by 36.5% 1,739 3. CEMENT INCREASE jobs completed 1, 297,019 in cruise by our 7% shipping TOWAGE TEAMS
TasPorts TRADING 127% PROFIT OF INCREASE ON 1 REPLACEMENT TUG 2016–2017 $9M trading profit and $5.8M of $3.9 million INVESTMENT IN 1 FLEET RENEWAL NEW PILOT LAUNCH $16.5M S P E N T O N remediation and renewal of existing port and marine infrastructure MARINE ASSETS maintained by TasPorts include 125 WHARVES, PIERS, BERTHS CRUISE SHIP VISITS AND BARGES to Tasmania with over 340,000 Employees achieved the passengers and crew TOP LEVEL OF PROACTIVE SAFETY 147, 200 HAZARDS REPORTS IN PASSENGERS MOVED HISTORY through Devonport 31 Airport, up by PUBLIC EVENTS 1.26% held on on the previous year TasPorts land 2% INCREASE IN property revenue
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P O R T S A N D INFRASTRUCTURE
PORT MASTER PLAN LARGER SHIPS This was the first cruise ship to TasPorts finalised its Port Master TasPorts worked closely with three stop at Beauty Point in five years. Plan this year ahead of the official major shipping customers during Visits by further vessels in the future launch of the strategy early in the the year to accommodate their is subject to customer demand and new financial year. The Port Master growth plans for Tasmania. the suitability with existing port Plan ensures clear vision for growth With Toll, we progressed the infrastructure. and renewal across our ports over development of infrastructure In response to the increasing the next 15 years. upgrades required for the larger number of visiting cruise ships, The Port Master Plan sets out vessels they plan to introduce into TasPorts renewed its commitment how the ports will be developed and Burnie from the end of 2018. At the to safety on the Hobart waterfront. where we will invest for integrated same time, we continued to engage In close consultation with customers use of port land, facilities and regularly with TT Line over the and stakeholders, we closed part of services. It also outlines where marine and landside infrastructure the waterfront to all through-traffic we are willing to support external required to support the introduction while cruise ships were in port, investment for growth. The aim is to of their larger Bass Strait ferries into protecting the safety of port users support existing customer growth Devonport by 2021. We also worked and enhancing Hobart’s reputation and attract new customers and trade with SeaRoad to support their as a safe destination. across a variety of commodity types. growth and sustainability in the Port The Port Master Plan follows the of Devonport. DEVONPORT AIRPORT 30-year port plan, TasPorts 2043, Passenger numbers at Devonport which was publicly released in CRUISE Airport continued to grow. This year late 2015. The cruise industry continued to 2,686 QantasLink flights carried grow during 2017-2018. Over the last 147,200 passengers in and out of BURNIE INTERNATIONAL five years Tasmania has seen a 131% the airport. The development of CONTAINER TERMINAL increase in the number of cruise ship the Devonport Airport Master Plan TasPorts continues to progress visits to the state from 54 cruise ship also commenced. This strategic plans for a new international calls in 2012-2013 to 125 cruise ship document has a 15-year planning container terminal at the Port of calls in 2017-2018. During the 2017- horizon and will deliver further Burnie. Across the year significant 2018 season 125 cruise ships carrying growth and renewal for Devonport due diligence was undertaken 245,265 passengers and 100,971 Airport. on costs, benefits, infrastructure crew called at ports around the state. requirements and market potential. TasPorts’ ongoing investment EVENTS AND SPONSORSHIP The development would see the in port infrastructure upgrades TasPorts continued to support a Port of Burnie handling medium- improved the state-wide wide range of events as well as sized container ships. This would capacity for larger cruise vessels, sponsorship. We provided in attract international container safeguarding future growth in the kind support of more than services offering direct shipping market. Investment of $4 million by $240,000 to 18 events from fun services to Asia, deliver a more TasPorts since 2014 saw the arrival runs to the Rolex Sydney Hobart competitive freight cost for Tasmania, of the luxury cruise liner L’Austral Yacht Race. We also provided create jobs in the North West and at Inspection Head Wharf at Beauty almost $54,000 in sponsorship inject more than $10 million into the Point in January 2018, bringing to local organisations. local economy every year. in 400 passengers and crew.
12 The Port Master Plan ensures clear vision for growth and renewal across our ports over the next 15 years.
13 TASPORTS ANNUAL REPORT 2017–2018
TasPorts completed its $27.3 million Community Assets Program this year.
14 COMMUNITY ASSETS PROGRAM
TasPorts completed its $27.3 All of the projects in the Program Strahan community with useable million Community Assets Program were completed, which improved infrastructure for the next 50 years this year, delivering on its stated the assets, ensured their safety for and confirmed TasPorts as a key corporate intention to maintain users and in some cases prevented leader in the west coast community. these assets for the benefit of the closures. Works were also carried out at Tasmanian community. The Program The Program has been a huge Inspection Head this year upgrading saw the successful completion of success and delivered benefits to services and improving the safety over 80 projects state-wide over communities living around our ports and reliability of infrastructure at a five year period. from Stanley in the North West to the wharf. The Program met its objectives Strahan in the West, Inspection Other projects carried out during on time and on budget to: Head in the North and Sullivans the life of the Program include at • Maintain and repair important Cove in Hobart. Stanley the refurbishment of finger community assets for the benefit The Program’s marquee project piers, the RORO Tower removal and and safety of local communities. was the Strahan Main Wharf a rebuild of the retaining wall wharf. • Improve community access and rebuild. This project was completed In Hobart the Murray Street Pier was provide additional commercial in 2017-2018. Over $6.5 million remediated, bearing replacement opportunities for the local has been invested in projects in and associated works undertaken community and TasPorts. Strahan, including during this at Victoria Dock and Bridge and the • Achieve an increase in commercial financial year, making it the largest Franklin Wharf rebuilt at Sullivans returns with rentals that reflect in the Community Assets Program. Cove. the market value of the assets to This project saw the commercial A total of $17.5 million in funding for provide additional funds for future development of the Strahan Terminal the Community Assets Program was investment by the company. building and a renegotiation to secured from the State Government, more favourable property leases. with the remaining $9.8 million being The upgrades have provided the contributed by TasPorts.
15 TASPORTS ANNUAL REPORT 2017–2018
MARINE SERVICES
FLEET RENEWAL PROGRAM and Hellyer in Burnie. These vessels towage services. Australian TasPorts continues to renew its fleet are designed with self-righting Maritime Safety Authority (AMSA) for the benefit of customers and capabilities and are optimised reviewed and approved the new stakeholders. with the latest safety systems and SMS during an audit on the Hobart Further progress was made this technology. tug Yandeyarra. The towage team year with the 10 Year Fleet Renewal also developed a review schedule Program which is building TasPorts’ PILOTAGE for the SMS to ensure the system fleet of tugs, pilot cutters and TasPorts Marine Pilots worked is assessed every 12 months so workboats to ensure the safety of strategically to meet current that it evolves to suit our dynamic employees and port assets. demands and proactively cater business operations. This year Mount Florance joined for future growth in the industry. Hobart’s towage fleet, providing Piloted ship movements increased TRAINING vital assistance to the increase in on the previous year to 1,798 from New Hobart tugs Mount Florance shipping to our Southern region. 1,673. Throughout the year our pilots and Yandeyarra are both powerful This Z-drive tug will operate delivered high-quality pilotage low-profile, high-bollard pull harbour alongside sister vessel Yandeyarra services on a 24/7 basis at all major tugs with the latest technology. to support Tasman Bridge transits ports around Tasmania, ensuring To ensure our crews operate the and the trend of larger ships. TasPorts met its obligations under tugs safely and effectively, they ASD tug Wilga was relocated to the Deed of Agreement with Marine successfully completed training Devonport during the financial and Safety Tasmania (MAST). during the financial year. year, strengthening the North West Seaways Consultants conducted towage fleet and ensuring ASD tugs SAFETY MANAGEMENT SYSTEM training with each tug Master and are available in every major port. During the year TasPorts’ towage our Marine Pilots in the simulator at This financial year also saw the team updated and implemented a Australian Maritime College (AMC). strengthening of the state’s fleet of new Safety Management System Our crews then undertook a 4-day pilot vessels with the addition of the (SMS) to ensure the safety of training course on Yandeyarra in new $2.7 million state-of-the-art pilot employees, customers and vessels Hobart before being assessed cutter, Kelly, built by Hart Marine in in our ports. The SMS, which is a by Captain Arie Nygh, the most Victoria. Kelly is the third new pilot requirement for TasPorts to have, respected tug-training Master in cutter purchased from Hart Marine, outlines all the policies, practices Australia. complementing Paterson in Bell Bay and procedures to deliver safe
16 This financial year saw the strengthening of the state’s fleet of pilot vessels.
17 TASPORTS ANNUAL REPORT 2017–2018
LOGISTICS
BELL BAY FORESTRY CONTAINERS Burnie container volumes reduced TasPorts’ forestry business TasPorts continued to support the by 0.4% in 2018, however they still grew again this year. At Bell Bay, state’s further growth in container make up 45% of the state’s container hardwood bulk logs ceased, replaced freight movements with an overall movements. Toll has announced a with Pacific Forest Products starting increase of 11.6% across the state. $170m investment in a new vessel the export of containerised softwood Container exports increased by to be introduced during the 2019 logs with plans to expand into 59% during 2017-2018 at Bell Bay, financial year. containerised plantation hardwood and now make up approximately Hobart recorded a 344% export logs. Woodchip exports from 5% of Tasmania’s container exports. increase in containers due to the Bell Bay and Longreach are up from Two international services are consolidation of the Swire service. 2016-2017 reflecting the ongoing now operating out of Bell Bay into The state’s capital also experienced demand for hardwood chips into the international markets via Asia, an increase in containerised log Asian markets. including Maersk and Mediterranean movements through Southern Shipping Company (MSC). Export Terminals (SET). BURNIE FORESTRY An increase in containerised log At Burnie, the bulk export log volumes out of Bell Bay supported MINERALS AND FUEL trade grew by a further 10% on the expansion of MSC’s vessel Volumes in the minerals sector last year’s gains, to more than traffic and the introduction of increased by 10% state-wide over 500,000 tonnes supported a Capricornia-size vessel with a the year, with increases across through additional volumes of bulk capacity of 3,500 TEUs. Bell Bay, Devonport and Hobart. plantation hardwood exports. Devonport experienced solid Fuel volumes shipped exceeded growth in container movements 800 million litres in 2017-2018, an BURNIE CHIP EXPORT TERMINAL this financial year with an increase increase of 14% on the previous The Burnie Chip Export Terminal of 19.7%. This was a result of the financial year. The largest increase (BCET) continued to support the introduction of SeaRoad Group’s was in diesel imports with modest ongoing strength in the hardwood new vessel Searoad Mersey II, increase in unleaded fuel. During chip export market. A total of 1.45 replacing the smaller Mersey. the year TasPorts also started work million tonnes of product was Container movements in Devonport on a Request for Proposal (RFP) to exported through the terminal make up 45% of total container provide TasPorts’ state-wide fuel across the financial year. movements across Tasmania. supply. TasPorts uses more than TasPorts is working closely with its Devonport is expected to see 8 million litres of fuel across its forestry partners to further improve future growth for passenger and marine services and Bass Island Line chip handling and shiploading freight as TT Line announced the shipping service. The RFP will also techniques to reduce freight costs. signing of a letter of intent with a review the service offering to King TasPorts also made significant German shipbuilder to build two Island and Flinders Island to improve investment in maintenance to new purpose-built ships to replace customer fuel supply. support trade, including upgrades to the existing Spirit of Tasmania the shiploader and the bulldozers. vessels.
18 A total of 1.45 million tonnes of product was exported through the Burnie Chip Export Terminal across the financial year.
19 TASPORTS ANNUAL REPORT 2017–2018
B A S S I S L A N D LINE
After a challenging 16-month period, John Duigan delivered a step Alan Carey (Chair), Rosemary TasPorts grew and refreshed its change in the BIL service with a Hallet, Donna Whitehouse- wholly-owned subsidiary Bass direct route from Victoria speeding Summers, Robbie Payne and Trevor Island Line (BIL) to achieve another up delivery times through a reliable Stones. The KIAB is a group of successful year of service. schedule with no increase in freight key stakeholders and experts on In May 2018, BIL’s new vessel, John rates. the King Island shipping service. Duigan, officially came into service. Across the year BIL moved 65,764 The revitalisation of the KIAB is John Duigan is bigger and faster than tonnes, made up of 56,672 tonnes a positive step in the continual its predecessor, Investigator II, with on Investigator II (from 1 July 2017 to development of our relationships 83% increased deck space, a 90% mid-May 2018) and 9092 tonnes on with stakeholders and the King increase in container capacity and John Duigan (from mid-May to end Island community. a 20% increase in running speed. of June 2018). Bass Island Line and TasPorts BIL also expanded the route Across the year BIL shipped provided significant contributions during the financial year, moving 13,753 tonnes of fertiliser, 468 cars, to the King Island community this from a Tasmanian transhipment 304 twenty-foot equivalent units financial year through sponsorship service operating between (TEU) of general cargo, 277 TEU of and donations. Assistance has been Devonport and Grassy to a weekly dairy, 149 TEU of diesel, 134 TEU of provided to numerous community service between Geelong in Victoria, grain and 424 livestock trailers. groups and organisations on the Grassy on King Island and mainland Following the introduction of John island including King Island Races, Tasmania. Duigan BIL also introduced vehicle Lions Club of King Island, King Island Introducing the multi-million containers as a safe and reliable way Boat Club and Festival of King Island. dollar John Duigan was a significant to ship vehicles. The six containers BIL was also delighted to have undertaking with the vessel being were well utilised providing safe, the opportunity to partner with built in Malaysia and sailed to secure and sheltered vehicle BreastScreen Tasmania to assist in Tasmania via the east coast of transport to and from King Island. bringing their new mobile screening Australia, where it then underwent The King Island Advisory Board unit to King Island by covering all further modifications at the ship lift (KIAB) was also revitalised this wharfage charges for the Screening in Invermay. year, with the following members: Unit in both Bell Bay and Grassy.
SOUTHERN EXPORT TERMINALS
In Hobart, export timber product Since the start of operation, export volumes saw SET’s first volumes grew at Southern Export SET has experienced steady customer move from completing a Terminals (SET), the joint venture growth in both bulk log exports larger shipment every few months operation by TasPorts and Qube and containerised log exports. to exporting around 80 containers Ports. SET provides a highly SET has moved over 82,000 a fortnight. productive and cost-efficient tonnes of log exports during the This growth in exports through export option for logs from nearby 2017-2018 financial year. SET during 2017-2018 underlines southern timber resources. SET has During 2017-2018 SET expanded SET’s success in providing all seamlessly transitioned into the its operation from one customer southern exporters with a direct working port operations in Hobart. to four. This strong growth of gateway to international markets.
20 Since the start of operation, Southern Export Terminals has experienced steady growth in both bulk log exports and containerised log exports.
21 TASPORTS ANNUAL REPORT 2017–2018
Container exports increased by 59% at Bell Bay.
22 GOVERNANCE + T H E B OT TO M LINE
23 TASPORTS ANNUAL REPORT 2017–2018
BOARD OF DIRECTORS
STEPHEN BRADFORD SALLY DARKE DARIO TOMAT Chairman Director Director
Stephen has had a portfolio of Sally is currently Chairperson of Dario is a professional engineer with Non-Executive roles and retired the Tasmanian Community Fund, over 30 years of experience in the as a Director of Napier Port (NZ) Chairperson of Scotch Oakburn building, electricity, manufacturing on 31 July 2018. He is also Senior College and Non-Executive Director and asset management areas. Dario Advisor to Flagstaff Partners on of TasWater. is a Director at Whetstone Pty Ltd, infrastructure assets. She is also a past Chairperson, responsible for project delivery, Previously Stephen was the Director and Adviser to the Board quality assurance and occupational CEO of Port of Melbourne of B&E and has had 10 years as a health and safety. Key project clients Corporation, 2004-13. During this Director in the advisory practice include Compass Group, Forestry time, he oversaw the approval and of KPMG. Tasmania and Ta Ann Tasmania. completion of the channel Sally has more than 25 years’ Dario holds Bachelor Degrees in deepening project and instigated experience in Human Resources Engineering and Business and has a Webb Dock capacity expansion. and Corporate Governance in the Masters of Business Administration. Prior to this, he was the CEO financial, infrastructure, education, He is a Fellow of the Australian of Great Southern Railway and sporting and community sectors Institute of Company Directors managing Director of Serco with an emphasis on regulated and Engineers Australia and is a Australia Transport. industries. Registered Professional Engineer. Dario is currently Chair of Brain Injury Association of Tasmania, Chair of the Assessment Committee TasPorts reported a trading profit for the Registered Professional of $9.0 million in 2018. Engineer Scheme and Chair of the Human Resources and Remuneration Committee for the TasPorts Board. 24 LUCY GREGG TRACY MATTHEWS ELLEN WITTE Director Director Intern Director
Lucy has had 20 years’ experience Tracy is a Fellow of the Australian The TasPorts Board welcomed Ellen in project management, brand Institute of Company Directors and Witte to the role of Intern Director. development and supply chain of Chartered Accountants Australia The internship runs for 12 months and freight logistics experience and New Zealand. and aims to support aspiring Non- particularly in the Asian market. She has broad sector and industry Executive directors. Lucy was previously Manager, experience and core skills in the Ellen is a Partner and former Marketing & Business Development areas of accounting, governance, Executive Director at SGS at Reid Fruits. She was also on the audit and risk, business and strategic Economics & Planning. Strategic Industry Advisory Panel for planning. Ellen has over 17 years of the national cherry industry and was Tracy is currently a Non-Executive experience in consultancy. She a Board member of the Tasmanian Director of the Public Trustee has extensive experience in social, Agricultural Productivity Group. Tasmania, Chair of the Tasmanian environmental and economic impact Lucy resigned from TasPorts in Building and Construction Industry assessments, financial feasibility June 2018 after accepting a position Training Board; and Commodore of studies, cost benefit analyses and within the Tasmanian Government. the Royal Yacht Club of Tasmania. strategic assessments of facilities Previous directorships include and land use projects. Metro Tasmania, Tasplan Super, Ellen has completed the AICD Colony 47 and the Printing Authority (Australian Institute of Company of Tasmania. Directors) course, and has been on boards of the local PCYC and the Franklin Working Waterfront Association Inc.
25 TASPORTS ANNUAL REPORT 2017–2018
CORPORATE L E A D E R S H I P
PAUL WEEDON ANTHONY DONALD Chief Executive Officer Chief Operating Officer As the company’s most Anthony provides senior executive, Paul has executive leadership overall responsibility for for the entire terminals all major corporate and and landside portfolio, operational decisions, as including all infrastructure, well as strategic direction, landside and property policy, culture and operations. company resources.
GEOFF DUGGAN MATTHEW JOHNSTON STEVEN CLARK Chief Financial Officer Executive General Executive General Manager Marine Manager Customer Geoff leads the Corporate Services and Shipping and Commercial Services team and is Matthew leads all Marine Steven was in charge responsible for maximising Services including of maximising existing the company’s financial pilotage and towage as customer experience position and leading well as the Vessel Traffic and satisfaction and TasPorts’ corporate System and the fleet. identifying new business planning work. growth opportunities. He retired in July 2018.
26 27 TASPORTS ANNUAL REPORT 2017–2018
28 KEY RESULTS
Statement of Corporate Intent
FULL YEAR TARGET RESULT COMMENT
2017–18 2017–18
FINANCIAL RETURNS TO GOVERNMENT
Dividend ($m) 4.1 2.8 The dividend payment was in relation to the 2017 FY. The reduction from target was the dividend offset for the losses of Bass Island Line.
Guarantee Fees ($m) 0.4 0.4 No variance
Increased profitability in 2017 and increased Tax ($m) 4.0 5.6 revenue in 2018.
TOTAL 8.5 8.8
The above returns are on a cash basis.
FINANCIAL TARGETS
Operating Profit before Interest, Tax, 47.5 47.0 Above budget operating costs Depreciation and Maintenance ($m)
Commercial Asset Maintenance ($m) 17.0 14.0 Projects deferred to the 2019 financial year
Community Asset Maintenance ($m) 1.7 2.5 Budgeted 2017 financial year maintenance delayed until the 2018 financial year
Operating Profit after Tax ($m) 8.4 9.0 Above budget revenue and lower maintenance
% Increase in Operating Costs 3.2 10.0 Project planning and delivery costs
Capital Expenditure ($m) 27.8 19.4 Projects delayed
Return on Assets (%) 2.7 2.9 Above budget profitability
Return on Equity (%) 3.5 3.8 Above budget profitability
Gearing (%) 10.3 10.1 Above budget profitability
Interest Cover Ratio (EBIT) 7.8 8.9 Above budget profitability
Interest Cover Ratio (EBITDA) 16.1 17.0 Above budget profitability
NON – FINANCIAL TARGETS
Lost Time Injury Frequency Rate 0.0 5.1 Two lost time injuries during the year
Pilotage Arrival Accuracy (%) 98.0 98.0 No variance
Marine Fleet Availability 97.0 97.0 No variance
Reduction in Unsecured Tenancies 50.0 20.0 Lower unsecured base carried forward from 2017
DEFINITIONS Capital Expenditure Expenditure on plant & equipment, marine fleet and infrastructure Gearing External debt divided by (total equity + external debt) Interest Cover Ratio (EBIT) Operating profit before interest and tax divided by finance costs (interest & guarantee fees) Interest Cover Ratio (EBITDA) Operating profit before interest, tax and depreciation divided by finance costs (interest & guarantee fees) Lost Time Injury Frequency Rate (Lost time injury incidents for the year X 1 million) divided by total hours worked Maintenance Total maintenance and land and marine infrastructure and other assets Community Asset Maintenance Infrastructure maintenance on community assets (Hobart Waterfront, Inspection Head, Stanley, Strahan) Operating costs Operating expenses excluding maintenance expenses and fuel acquired for resale Return on Assets Operating profit after tax divided by total assets Return on Equity Operating profit after tax divided by total equity Pilotage Arrival Accuracy Actual pilot arrival time versus planned pilot arrival – non-conformance attributable to TasPorts Marine Fleet Availability Total arrivals versus unplanned outage of marine fleet causing delay to vessel arrival – non-conformance attributable to TasPorts Unsecured Tenancies Tenancies with undocumented legacy arrangements.
29 TASPORTS ANNUAL REPORT 2017–2018
FREIGHT STATISTICS
TASMANIAN – FREIGHT STATISTICS
TONNES CHANGE TEUs AVG. FROM NO. CARGO YEAR IMPORT GROWTH EXPORT GROWTH TOTAL GROWTH FY2006 INWARD OUTWARD TOTAL SHIPS PER SHIP
05/06* 5,112,865 – 9,681,748 – 14,794,613 – – 224,621 225,452 450,073 2,187 6,765 06/07 4,985,676 -2.49% 10,209,748 5.5% 15,195,424 2.7% 2.7% 221,446 228,974 450,420 2,046 7,427 07/08 5,517,080 10.66% 10,705,453 4.9% 16,222,533 6.8% 9.7% 246,331 245,154 491,485 2,102 7,718 08/09 5,285,411 -4.20% 9,568,919 -10.6% 14,854,330 -8.4% 0.4% 235,596 238,589 474,185 1,996 7,442 09/10 4,822,976 -8.75% 8,602,367 -10.1% 13,425,343 -9.6% -9.3% 230,291 230,666 460,957 1,873 7,168 10/11 5,074,191 5.21% 8,463,833 -1.6% 13,538,024 0.8% -8.5% 233,113 230,233 463,346 1,973 6,862 11/12 4,729,623 -6.79% 6,556,943 -22.5% 11,286,566 -16.6% -23.7% 229,681 227,144 456,825 1,770 6,377 12/13 4,862,850 2.82% 6,439,284 -1.8% 11,302,134 0.1% -23.6% 230,879 228,474 459,353 1,794 6,300 13/14 4,980,686 2.42% 7,589,447 17.9% 12,570,134 11.2% -15.0% 226,828 224,476 451,304 1,774 7,086 14/15 5,127,520 2.95% 7,635,799 0.6% 12,763,319 1.5% -13.7% 232,513 229,051 461,565 1,844 6,922 15/16 5,364,702 4.63% 8,385,800 9.8% 13,750,502 7.7% -7.1% 236,215 232,392 468,607 1,915 7,180 16/17 5,094,675 -5.0% 9,157,651 9.2% 14,252,327 3.6% -3.7% 239,765 235,398 475,163 2,071 6,882 17/18 5,637,839 10.7% 9,587,558 4.7% 15,225,397 6.8% 2.9% 267,429 262,838 530,268 2,215 6,874 * TasPorts commenced operation on 1/1/06. Therefore the previous 6 months relate to figures from the former regional port companies.
BELL BAY – FREIGHT STATISTICS
TONNES TEUs AVG. NO. CARGO YEAR IMPORT GROWTH EXPORT GROWTH TOTAL GROWTH INWARD OUTWARD TOTAL SHIPS PER SHIP
05/06* 1,512,356 – 3,424,957 – 4,937,313 – 42,779 46,211 88,990 403 12,251 06/07 1,417,049 -6.30% 3,829,923 11.8% 5,246,972 6.3% 43,443 45,857 89,300 413 12,705 07/08 1,646,474 16.19% 3,866,118 0.9% 5,512,592 5.1% 46,372 43,086 89,458 445 12,388 08/09 1,598,558 -2.91% 3,105,760 -19.7% 4,704,318 -14.7% 45,339 46,587 91,926 385 12,219 09/10 1,262,014 -21.05% 2,523,076 -18.8% 3,785,090 -19.5% 22,246 24,117 46,363 310 12,210 10/11 1,519,945 20.44% 2,514,306 -0.3% 4,034,251 6.6% 24,689 23,001 47,690 377 10,701 11/12 1,160,359 -23.66% 1,172,498 -53.4% 2,332,857 -42.2% 2,412 3,473 5,885 207 11,270 12/13 1,226,603 5.71% 1,190,124 1.5% 2,416,727 3.6% 849 434 1,283 171 14,133 13/14 1,310,605 6.85% 1,920,509 61.4% 3,231,114 33.7% 1,643 1,899 3,542 170 19,007 14/15 1,339,906 2.24% 1,907,453 -0.7% 3,247,358 0.5% 3,115 3,015 6,130 174 18,663 15/16 1,368,210 2.11% 2,101,772 10.2% 3,469,983 6.9% 6,439 6,758 13,197 220 15,773 16/17 1,387,383 1.4% 2,221,682 5.7% 3,609,065 4.0% 7,888 7,544 15,432 278 12,982 17/18 1,583,323 14.1% 2,515,114 13.2% 4,098,437 13.6% 11,984 11,970 23,954 274 14,958 * TasPorts commenced operation on 1/1/06. Therefore the previous 6 months relate to figures from the former regional port companies.
DEVONPORT – FREIGHT STATISTICS
TONNES TEUs AVG. NO. CARGO YEAR IMPORT GROWTH EXPORT GROWTH TOTAL GROWTH INWARD OUTWARD TOTAL SHIPS PER SHIP
05/06* 1,297,773 – 1,842,299 – 3,140,072 – 90,243 75,854 166,097 968 3,244 06/07 1,317,496 1.52% 1,805,453 -2.0% 3,122,949 -0.5% 80,204 76,260 156,464 875 3,569 07/08 1,375,408 4.40% 1,888,480 4.6% 3,263,888 4.5% 87,913 83,123 171,036 849 3,844 08/09 1,327,270 -3.50% 1,865,337 -1.2% 3,192,607 -2.2% 86,782 82,282 169,064 847 3,769 09/10 1,359,929 2.46% 1,907,112 2.2% 3,267,041 2.3% 93,840 90,902 184,742 849 3,848 10/11 1,349,652 -0.76% 1,853,380 -2.8% 3,203,032 -2.0% 93,282 90,759 184,041 856 3,742 11/12 1,385,711 2.67% 1,971,614 6.4% 3,357,326 4.8% 101,341 99,353 200,695 829 4,050 12/13 1,344,913 -2.94% 2,109,886 7.0% 3,454,799 2.9% 98,883 97,244 196,127 826 4,183 13/14 1,413,393 5.09% 2,136,787 1.3% 3,550,181 2.8% 100,616 98,529 199,146 827 4,293 14/15 1,458,430 3.19% 2,181,075 2.1% 3,639,505 2.5% 105,074 102,814 207,888 845 4,307 15/16 1,462,018 0.25% 2,088,754 -4.2% 3,550,772 -2.4% 100,839 97,802 198,641 872 4,072 16/17 1,492,196 2.1% 2,252,860 7.9% 3,745,055 5.5% 106,742 102,361 209,103 939 3,988 17/18 1,670,513 11.9% 2,239,784 -0.6% 3,910,297 4.4% 126,373 123,886 250,258 978 3,998 * TasPorts commenced operation on 1/1/06. Therefore the previous 6 months relate to figures from the former regional port companies.
30 BURNIE – FREIGHT STATISTICS
TONNES TEUs AVG. NO. CARGO YEAR IMPORT GROWTH EXPORT GROWTH TOTAL GROWTH INWARD OUTWARD TOTAL SHIPS PER SHIP
05/06* 1,251,495 – 2,899,227 – 4,150,722 – 91,475 103,031 194,506 549 7,561 06/07 1,260,495 0.72% 3,016,948 4.1% 4,277,443 3.1% 97,659 106,369 204,028 508 8,420 07/08 1,357,817 7.72% 3,099,244 2.7% 4,457,061 4.2% 109,970 117,267 227,237 545 8,178 08/09 1,291,547 -4.88% 2,874,827 -7.2% 4,166,374 -6.5% 103,475 109,720 213,195 503 8,283 09/10 1,280,401 -0.86% 2,821,438 -1.9% 4,101,839 -1.5% 114,205 115,646 229,851 437 9,386 10/11 1,161,080 -9.32% 2,819,162 -0.1% 3,980,242 -3.0% 115,142 116,473 231,615 457 8,710 11/12 1,238,958 6.71% 2,505,391 -11.1% 3,744,349 -5.9% 121,776 120,508 242,284 440 8,510 12/13 1,264,739 2.08% 2,371,866 -5.3% 3,636,605 -2.9% 126,986 126,847 253,833 452 8,046 13/14 1,299,671 2.76% 2,751,950 16.0% 4,051,621 11.4% 121,205 120,931 242,136 435 9,314 14/15 1,356,681 4.39% 2,900,399 5.4% 4,257,080 5.1% 119,946 119,308 239,254 423 10,064 15/16 1,436,622 5.89% 3,466,489 19.5% 4,903,111 15.2% 124,435 123,601 248,036 428 11,456 16/17 1,303,653 -9.3% 4,028,166 16.2% 5,331,819 8.7% 120,936 120,430 241,366 443 12,036 17/18 1,380,828 5.9% 4,062,579 0.9% 5,443,407 2.1% 121,202 119,283 240,485 470 11,582 * TasPorts commenced operation on 1/1/06. Therefore the previous 6 months relate to figures from the former regional port companies.
HOBART – FREIGHT STATISTICS
TONNES TEUs AVG. NO. CARGO YEAR IMPORT GROWTH EXPORT GROWTH TOTAL GROWTH INWARD OUTWARD TOTAL SHIPS PER SHIP
05/06* 1,051,241 – 1,515,265 – 2,566,506 – 124 356 480 267 9,612 06/07 990,636 -5.77% 1,557,424 2.8% 2,548,060 -0.7% 140 488 628 250 10,192 07/08 1,137,381 14.81% 1,851,611 18.9% 2,988,992 17.3% 2,076 1,678 3,754 263 11,365 08/09 1,068,036 -6.10% 1,722,995 -6.9% 2,791,031 -6.6% – – – 261 10,694 09/10 920,632 -13.80% 1,350,741 -21.6% 2,271,373 -18.6% – 1 1 277 8,200 10/11 1,043,514 13.35% 1,276,986 -5.5% 2,320,500 2.2% – 1 1 283 8,200 11/12 910,069 -12.79% 870,332 -31.8% 1,780,401 -23.3% – – – 248 7,179 12/13 995,750 9.41% 719,163 -17.4% 1,714,913 -3.7% – – – 253 6,778 13/14 927,585 -6.85% 744,917 3.6% 1,672,503 -2.5% – – – 224 7,467 14/15 937,410 1.06% 606,200 -18.6% 1,543,610 -7.7% 26 12 38 256 6,030 15/16 1,062,411 13.33% 696,176 14.8% 1,758,588 13.9% 297 229 526 270 6,513 16/17 876,314 -17.5% 613,821 -11.8% 1,490,135 -15.3% 1,033 844 1,877 262 5,688 17/18 963,061 9.9% 734,708 19.7% 1,697,768 13.9% 4,228 4,114 8,341 291 5,834 * TasPorts commenced operation on 1/1/06. Therefore the previous 6 months relate to figures from the former regional port companies.
KING ISLAND – FREIGHT STATISTICS
TONNES TEUs AVG. NO. CARGO YEAR IMPORT GROWTH EXPORT GROWTH TOTAL GROWTH INWARD OUTWARD TOTAL SHIPS PER SHIP
11/12* 34,525 – 37,108 – 71,633 – 4,152 3,809 7,961 46 1,557 12/13 30,845 -10.66% 48,245 30.0% 79,090 10.4% 4,161 3,949 8,110 92 860 13/14 29,432 -4.58% 35,283 -26.9% 64,715 -18.2% 3,364 3,116 6,480 118 548 14/15 35,093 19.23% 40,673 15.3% 75,766 17.1% 4,352 3,903 8,255 146 519 15/16 35,440 0.99% 32,608 -19.8% 68,049 -10.2% 4,205 4,002 8,207 125 544 16/17 35,129 -0.88% 41,123 26.1% 76,253 12.1% 3,166 4,219 7,385 149 512 17/18 40,114 14.2% 35,374 -14.0% 75,489 -1.0% 3,643 3,586 7,229 202 374 * The business conducted by King Island Ports Corporation Pty Ltd was transferred into Tasmanian Ports Corporation Pty Ltd 1/07/2011.
31 TASPORTS ANNUAL REPORT 2017–2018
FREIGHT VOLUMES
2017–2018 IMPORT TONNES
FY 2018 TONNES %
Bell Bay 1,583,323 28.1% Devonport 1,670,513 29.6% Burnie 1,380,828 24.5% Hobart 963,061 17.1% King Island 40,114 0.7%
TOTAL 5,637,839 100%
2017–2018 EXPORT TONNES
FY 2018 TONNES %
Bell Bay 2,515,114 26.2% Devonport 2,239,784 23.4% Burnie 4,062,579 42.4% Hobart 734,708 7.7% King Island 35,374 0.4%
TOTAL 9,587,558 100%
2017–2018 TOTAL TONNES
FREIGHT FY 2018 TONNES %
Bell Bay 4,098,437 26.9% Devonport 3,910,297 25.7% Burnie 5,443,407 35.8% Hobart 1,697,768 11.2% King Island 75,489 0.5%
TOTAL 15,225,397 100%
32 2017–2018 INWARD TEUs
FY 2018 TEUs %
Bell Bay 11,984 4.5% Devonport 126,373 47.3% Burnie 121,202 45.3% Hobart 4,228 1.6% King Island 3,643 1.3%
TOTAL 267,429 100%
2017–2018 OUTWARD TEUs
FY 2018 TEUs %
Bell Bay 11,970 4.6% Devonport 123,886 47.1% Burnie 119,283 45.4% Hobart 4,114 1.6% King Island 3,586 1.3%
TOTAL 262,838 100%
2017–2018 TOTAL TEUs
FY 2018 TEUs %
Bell Bay 23,954 4.5% Devonport 250,258 47.2% Burnie 240,485 45.4% Hobart 8,341 1.6% King Island 7,229 1.3%
TOTAL 530,268 100%
2017–2018 TOTAL SHIPS
FY 2018 SHIPS %
Bell Bay 274 12.4% Devonport 978 44.2% Burnie 470 21.2% Hobart 291 13.1% King Island 202 9.1%
TOTAL 2,215 100%
33 TASPORTS ANNUAL REPORT 2017–2018
COMMODITIES STATEWIDE
2017–2018 – TOP TWENTY COMMODITIES – TEUs
COMMODITY TOTAL
GENERAL CARGO 178,603 900920= EMPTY 139,455 900545= FOODS – OTHER 41,018 410= BEVERAGES 32,761 327= NEWSPRINT 18,084 180= TIMBER PRODUCTS 13,070 130= DAIRY PRODUCTS 12,233 122= ZINC 9,941 99= VEGETABLES 8,831 88= HAZARDOUS 8,651 76= PAPER PRODUCTS 7,371 73= CATTLE 6,972 69= ALUMINIUM INGOTS & BLOCK 6,803 68= METALS – OTHER 6,040 60= WHEAT 5,306 53= MEAT 4,287 42= LOGS 4,009 40= SCRAP METAL 3,883 38= FRUIT 3,669 36= GRAINS – OTHER 3,254 32=
2017–2018 – TOP TWENTY COMMODITIES – TONNES
COMMODITY TOTAL
WOODCHIPS 3,193,803 1000=10001000= GENERAL CARGO 1,670,557 1000=320= 0 CEMENT 1,297,019 1000=40= 0 LOGS 733,062 560= MET FINES 655,172 510= ZINC CONCENTRATE 621,249 480= EMPTY 460,689 350= DIESEL 436,348 336= BEVERAGES 420,838 330= FOODS – OTHER 397,713 310= ALUMINA 341,266 270= UNLEADED FUEL 318,227 240= NEWSPRINT 266,222 210= ZINC 263,035 205= FE & SI MANGANESE 257,926 200= FERTILISER 257,219 200= MAGNETITE 254,438 195= TOURIST VEHICLES 251,096 190= SULPHURIC ACID 245,176 190= COKE 182,168 140=
34 STATISTICS CHARTS
The following statistics are for the Economic Entity.
REVENUE MAINTENANCE
2007 $92,129,303 2007 $4,622,567 2008 $97,035,764 2008 $6,842,424 2009 $87,275,019 2009 $8,524,560 2010 $80,582,635 2010 $7,576,342 2011 $76,777,681 2011 $10,391,080 2012 $72,897,975 2012 $10,001,319 2013 $74,578,070 2013 $8,597,575 2014 $82,381,644 2014 $14,120,577 2015 $86,895,720 2015 $26,461,296 2016 $94,669,655 2016 $23,002,453 2017 $104,597,092 2017 $16,909,905 2018 $122,981,502 2018 $15,115,925
NET PROFIT AFTER TAX RETURN ON EQUITY
2007 $8,615,183 2007 5.57% 2008 $11,741,465 2008 9.36% 2009 $5,781,933 2009 4.60% 2010 $1,186,210 2010 0.96% 2011 $297,269 2011 0.16% 2012 ($6,665,097) 2012 (3.78%) 2013 ($1,392,491) 2013 (0.80%) 2014 ($168,778) 2014 (0.09%) 2015 ($8,548,962) 2015 (4.53%) 2016 $1,217,993 2016 0.61% 2017 $3,166,404 2017 1.32% 2018 $5,793,621 2018 2.38%
CAPITAL EXPENDITURE RETURNS TO GOVERNMENT
2007 $21,098,812 2007 $3,945,923 $2,745,884 2008 $29,019,471 2008 $3,498,617 $5,435,905 2009 $14,463,908 2009 $1,275,756 $3,617,151 2010 $3,972,432 2010 $134,591 $684,366 2011 $3,436,432 2011 $117,440 $0 2012 $5,395,498 2012 $32,152 $0 2013 $8,317,271 2013 $534,911 $0 2014 $11,994,326 2014 $784,227 $0 2015 $13,230,254 2015 $49,428 $0 2016 $14,577,704 2016 $494,167 $1,370,048 2017 $16,704,058 2017 $4,000,977 $2,815,131 2018 $33,281,513 2018 $5,980,096 $5,214,259
GROSS TAX DIVIDEND PAYABLE FROM PAYABLE FROM CURRENT CURRENT YEARS' PROFIT YEARS' PROFIT
35 TASPORTS ANNUAL REPORT 2017–2018
CORPORATE GOVERNANCE DISCLOSURES
TasPorts was established pursuant to the Tasmanian The Charter also addresses the relationship between the Ports Corporation Act 2005 (the Act) and is 100% owned Board and management. The CEO is responsible for the by the Tasmanian Government. The Shareholder Ministers general administration and management of TasPorts are the Minister responsible for Infrastructure and the comprising: Minister responsible for administering the Government • Conducting day to day business in accordance with Business Enterprise Act 1995. relevant legislation, the Constitution, the Shareholders’ The Act states that TasPorts’ principle objectives are to: Statement of Expectations and policies endorsed by • Facilitate trade for the benefit of Tasmania; and the Board; • Operate its activities in accordance with sound • Advising the Board, on a regular basis, on operational commercial practice. and financial performance; and Shareholder expectations in relation to TasPorts’ • Immediately advising the Board of any material matter objectives, performance, reporting, financial and other likely to seriously impact TasPorts. matters are documented in the Shareholders’ Statement A delegations policy details limits of delegated authority of Expectations. to management and reserved functions for the Board. In October 2008 the Shareholders issued a Governance In order to assist the Board perform its duties, an Framework Guide for Tasmanian Government Businesses Audit and Risk Management Committee and a Human and State Owned Companies. The Guide referenced Resources and Remuneration Committee have been the eight core principles underlining good corporate established. Each Committee operates under its own governance as recommended by the ASX Corporate Charter, which is reviewed regularly. Governance Council for listed companies. Performance management processes have been While noting that the principles were not mandated, established for all staff including management. The the Shareholder Ministers expressed an expectation that process involves assessment of capabilities and the core principles, where relevant, would be adopted performance against determined key performance by the Boards of Government Businesses and State indicators. The assessment process also addresses Owned Companies. development and training requirements. The Board is In addition to the Corporate Governance Principles also subject to a regular performance evaluation. noted below, the Department of Treasury and Finance has issued a Governance Framework and Guidelines in STRUCTURE THE BOARD TO ADD VALUE relation to: The composition of, and appointments to, the Board are • Board appointments; prescribed by the Act. The Act requires the Board to • Appointing the Chief Executive Officer as a member consist of Directors who have the skills and experience of the Board; necessary to enable TasPorts to achieve its objectives. • Director induction, education and training; Directors are encouraged to undertake ongoing education • Assessing Board performance; relevant to their role as Director. The Chairman and all • Director and Executive remuneration; other Directors are independent Non-Executive Directors. • Overseas travel; The Board has adopted the process recommended • Reporting; in the Guidelines for the selection and appointment of • Corporate planning; new Directors to the Board and for the reappointment of • Capital investment; and Directors whose terms are up for renewal. This process • Subsidiary companies and joint ventures. involves a performance evaluation for those Directors TasPorts has adopted applicable practices in compliance seeking reappointment. with the Governance Framework and Guidelines. In the event that a new appointment is made, the new TasPorts’ position on the eight core principles outlined Director undertakes a comprehensive induction program, in the Governance Framework Guide is as follows. including briefings from the Chief Executive Officer and senior management. LAY SOLID FOUNDATIONS FOR MANAGEMENT AND OVERSIGHT BY THE BOARD PROMOTE ETHICAL AND RESPONSIBLE The Board operates under a formal Charter and Code DECISION MAKING of Conduct that details its duties and responsibilities. TasPorts has adopted a set of values and a Code of The primary roles of the Board are to: Conduct in relation to its internal and external dealings. • Set the strategic direction of TasPorts; The Board, via the Company Secretary, maintains a • Ensure appropriate processes are in place for risk register of declarations of interests which is updated assessment and management; regularly. • Ensure accountability to the Shareholders; and TasPorts’ policies address the issue of conflict of • Appoint and review the performance of the Chief interest and include procedures for dealing with conflict Executive Officer. of interests should they arise.
36 SAFEGUARD INTEGRITY IN FINANCIAL REPORTING • Recommending remuneration for the Chief Executive The Chief Executive Officer and the Chief Financial Officer and reviewing annual performance against Officer provide written undertakings to the Board targets; providing assurances that TasPorts’ financial reports • Reviewing compensation arrangements (including present a true and fair view and are in accordance with incentives and other benefits) for management and relevant accounting standards. performance target outcomes; The Board has established an Audit and Risk • Reviewing and recommending for Board approval Management Committee. The internal audit function is policies for employee remuneration generally; provided by an external resource and this appointment • Reviewing superannuation arrangements; and is reviewed every three years. • Examining any matters referred to it by the Board. TasPorts’ external auditor is the Auditor-General of Tasmania. The Auditor-General or his representatives PUBLIC INTEREST DISCLOSURES ACT attend meetings of the Audit and Risk Management As required under the Public Interest Disclosures Act Committee from time to time. 2002, TasPorts has developed a system for reporting disclosures of improper conduct, corrupt conduct, or MAKE TIMELY AND BALANCED DISCLOSURE detrimental action by TasPorts, its officers or employees. TasPorts is not a company listed on the Australian Stock The procedures are available at www.TasPorts.com.au Exchange (ASX) and therefore is not subject to the or by contacting the Public Interest Disclosure Officer, ASX Listing Rules which include continuous disclosure TasPorts, GPO Box 202, Hobart, Tasmania 7001. requirements to the ASX. TasPorts reports to its No reports were made in 2017-18 under this regime. Shareholders in accordance with statutory obligations, Shareholder directions and obligations provided in RIGHT TO INFORMATION ACT TasPorts’ Constitution. TasPorts is committed to complying with the Right The Chairman and Chief Executive Officer regularly to Information Act 2009. Details about the Act and meet with Shareholders to provide briefings on key the company’s obligations under it are available at issues and developments. www.TasPorts.com.au or by contacting the Right to Information Officer, TasPorts, GPO Box 202, Hobart, RESPECT THE RIGHTS OF SHAREHOLDERS Tasmania, 7001. TasPorts complies with formal reporting obligations During 2017-18, one formal application for assessed under its Constitution, applicable legislation and the disclosure was received and responded to. Guidelines, and also provides regular briefings to its Shareholders. TasPorts recognises its relationship with PERSONAL INFORMATION PROTECTION ACT the wider community as it strives to meet its objective TasPorts is subject to the Personal Information Protection of facilitating trade for the benefit of Tasmania. Act 2004 which prescribes personal information protection principles for Tasmania. During 2017-2018 RECOGNITION AND MANAGEMENT OF RISK there were no complaints received under this regime. TasPorts manages its operational, financial and compliance risks in accordance with a Risk Management OVERSEAS TRAVEL Framework. The framework and supporting policies have No overseas travel was undertaken by the Directors been prepared in accordance with relevant standards during the 2017-2018 financial year. and are approved by the Audit and Risk Management The General Manager Customer Engagement travelled Committee. to Prague, Czech Republic in July/August 2017 for the A formal risk assessment process, to document the Council of Managers of National Antarctic Programs organisational strategic risk profile, has been undertaken conference. The cost of the trip was $2,174. and this profile is subject to annual review. The Manager Fleet travelled to Sibu, Malaysia in TasPorts has established a fraud risk register and September 2017, October 2017 and January 2018 to policy which is regularly reviewed by management and assess a vessel candidate for the Bass Island Line reported to the Audit and Risk Management Committee. shipping service and attend sea trials of the selected vessel, John Duigan. The cost of the trips was $16,915. REMUNERATE FAIRLY AND RESPONSIBLY The Executive General Manager Customer and The Board has established a Human Resources and Commercial travelled to Sibu, Malaysia in November 2017 Remuneration Committee which is responsible for to commission John Duigan. The cost of the trip was ensuring that remuneration policies and practices are $5,553. fair and responsible. Under its Charter, the Committee The CEO travelled to Sibu, Malaysia in January 2018 is responsible for the following: to accept John Duigan and attend its launch ceremony. • Maintaining an understanding of current organisational The cost of the trip was $6,960. planning, employment management practices and The total cost for all trips in 2017-18 was $31,602. regulatory obligations; • Reviewing and making recommendations to the Board SUPERANNUATION on succession planning for the Chief Executive Officer TasPorts complied with its obligations under the and Executive; Superannuation Guarantee (Administration) Act 1992 • Reviewing the adequacy of employment and (Cth) in respect of employees of TasPorts who are workplace management policies; members of complying superannuation schemes.
37 TASPORTS ANNUAL REPORT 2017–2018
BUY LOCAL AND PAYMENT OF ACCOUNTS GUIDELINES
BACKGROUND Purchases are defined to include operating expenses The Treasurer has approved the following Guidelines for (excluding employment expenses, finance expenses Tasmanian Government Businesses: and depreciation) together with capital expenditure. 1. Buy Local – which encourages purchasing from Purchases from non-Tasmanian businesses constitute Tasmanian suppliers and increased disclosures on the equipment, goods and services not available from use of consultants; and Tasmanian businesses (specifically for 2018, 2 new tug 2. Payment of Accounts – which requires implementation boats and the purchase of the John Duigan vessel for of appropriate policies and procedures to ensure that Bass Island Line). Excluding these purchases, 79% of all accounts are paid on time and, if not, interest is paid purchases were from Tasmanian businesses. for late payments. CONSULTANCIES BUY LOCAL The guidelines provide the following definitions: A “Tasmanian business” is defined as a business Contractor operating in Tasmania, which has a permanent office or A “Contractor” is an individual or organisation engaged presence in Tasmania and employs Tasmanian workers. under a contract (other than as an employee) to provide For the past three financial years, purchases from goods and/or services to an entity. A contractor will Tasmanian businesses were as follows: usually work under the supervision of an entity manager. 2018 2017 2016 Consultant Percentages of A “Consultant” is a particular type of contractor who purchases from is engaged to provide recommendations or specialist Tasmanian businesses 65% 84% 84% or professional advice (or more generally non-manual Value of purchases from services) to assist or influence an entity’s decision making. Tasmanian businesses $70,050,092 $65,782,647 $63,210,327
2018 year is for the Economic Entity, and includes the full 12 months of Bass Island Line Pty Ltd.
38 CONSULTANCIES VALUED AT MORE THAN $50,000 (EX GST) TO 30 JUNE 2018:
CAPITAL OPERATIONAL NAME OF CONSULTANT LOCATION DESCRIPTION EXPENDITURE EXPENDITURE
Black Quay Consulting Victoria Engineering Services $167,288 –
Burbury Consulting Pty Ltd Tasmania Engineering Services $60,456 –
DCS Civil Pty Ltd Tasmania Engineering Services $122,763 –
GHD Pty Ltd Tasmania Engineering Services $180,852 –
Jawarchitects Tasmania Architectural Services $138,822 –
The Frame Group Pty Ltd NSW IT Advice $103,454 –
CBM Sustainable Design Pty Ltd Tasmania Project Feasibility – $77,812 Assessments
DG & SJ Clark Tasmania Business Development – $176,091 Services
Galvin-Rowley Executive Victoria Recruitment Services – $51,085
GHD Pty Ltd Tasmania Engineering and Port – $896,366 Master Plans
Ironside Risk Partners Pty Ltd Queensland IT Advice – $56,667
JDC Marine Pty Ltd Tasmania Marine Services – $99,617
KPMG Australia Victoria Advisory Services – $77,315
KPMG Australia Tasmania Advisory Services – $136,373
MAST Tasmania Marine Pilot Audits – $96,000
OMC International Pty Ltd Victoria Marine Transit Services – $53,000
PM Partners Tasmania Port Master Plans – $60,796
Port & Transport Infrastructure Victoria Engineering Services – $267,123
Project Services & Advisory Group P/L Victoria Engineering Services – $243,020
Russell Reynolds Associates Australia Pty Ltd NSW Recruitment Services – $92,353
SMEC Australia Pty Ltd Tasmania Airport Master Plans – $64,788
Sprott Planning & Environment Pty Ltd Queensland Port Master Plans – $82,996
Sydney Herron Victoria Airport Management – $80,038 Services
Taplin Consulting Tasmania Project Management – $105,485
Tasmanian Consulting Services Pty Ltd Tasmania Engineering Services – $54,353
TOTAL $773,635 $2,771,278
Consultancies – Individually less than $50,000 $411,580 $2,478,711
TOTAL PAYMENT TO CONSULTANTS FOR THE ECONOMIC ENTITY $1,185,215 $5,249,989
39 TASPORTS ANNUAL REPORT 2017–2018
PAYMENT OF ACCOUNTS REASONS FOR DELAYS The Tasmanian Government has issued a Guideline that • Invoices issued in advance of services or goods being requires Government owned businesses: received or complete. • To implement appropriate policies and procedures to • Dispute as to the price of goods or services, additional ensure that all accounts are paid on time and, if not, documentation requirement, timeliness of delivery or interest is paid for late payments; incorrect goods or services provided. • Pay invoices of less than $50,000 within 30 days, or • Vendors not providing sufficient detail on the invoice if a shorter term has been agreed, within the shorter for TasPorts to recognise the validity of the invoice. term; and There has been no instance where, during the reporting • Pay invoices of $50,000 and above in accordance periods, that interest is payable in relation to any invoice. with agreed terms and by the due date. The expectation is to pay all invoices correctly rendered DETAILS OF ACTION TAKEN by suppliers within the period specified by the supplier, TO IMPROVE PERFORMANCE or where the contract is silent on payment requirements, TasPorts has implemented the following actions to within 30 calendar days of the date of a correctly improve payment terms of invoices: rendered invoice. • Increased uptake of the asset management system To ensure TasPorts is able to pay suppliers within 30 to improve contract management and vendor days of the invoice date the invoices must be correctly relationships; and rendered and received by TasPorts on a timely basis. • Negotiation with vendors to ensure invoices are sent to TasPorts electronically in a timely and complete Set out below is detail for the previous three financial manner. years.
INVOICES DUE OR PAID MEASURE 2018 2017 2016
Average creditor days 24 25 26
Number of accounts due for payment 17,474 15,682 14,198
Number of accounts paid 15,175 13,595 12,082 on time (87%) (87%) (85%)
Amount due for payment $124,623,455 $87,547,999 $86,151,110
Amount paid on time $117,521,564 $82,259,183 $81,842,901
Number of payments for interest on overdue accounts Nil Nil Nil
Interest paid on overdue accounts Nil Nil Nil
2018 year is for the Economic Entity, and includes the full 12 months of Bass Island Line Pty Ltd.
40 41 TASPORTS ANNUAL REPORT 2017–2018
FINANCIAL STATEMENTS
For the year ended 30 June 2018
43 DIRECTORS’ REPORT
46 AUDITOR’S INDEPENDENCE DECLARATION
47 DIRECTORS’ DECLARATION
48 STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
49 STATEMENT OF FINANCIAL POSITION
50 STATEMENT OF CHANGES IN EQUITY
51 STATEMENT OF CASH FLOWS
53 NOTES TO THE FINANCIAL STATEMENTS
79 INDEPENDENT AUDITOR’S REPORT
42 DIRECTORS’ REPORT
for the year ended 30 June 2018
The Directors present their report on the Tasmanian Ports Corporation Pty Ltd (TasPorts) and its controlled entities (“the Economic Entity”) for the year ended 30 June 2018. The names of the Directors in office at any time during or since the end of the year are:
STEPHEN BRADFORD Chairperson Mr Bradford was appointed as Director and Chairman in December 2015. Non-Executive Director Mr Bradford is a member of the Human Resources and Remuneration Committee and Audit and Risk Management Committee. Current term: December 2015 – November 2018 Board Meetings attended: 11 Human Resources and Remuneration Audit and Risk Management Committee Committee Meetings attended: 3 Meetings attended: 4
TRACY MATTHEWS Non-Executive Director Ms Matthews was appointed a Director in December 2015 and is Chair of the Audit and Risk Management Committee. Current term: December 2015 – November 2018 Board Meetings attended: 11 Human Resources and Remuneration Audit and Risk Management Committee Committee Meetings attended: 3 Meetings attended: 4
DARIO TOMAT Non-Executive Director Mr Tomat was appointed a Director in December 2015 and was re-appointed in November 2017. Mr Tomat is Chair of the Human Resources and Remuneration Committee and a member of the Audit and Risk Management Committee. Current term: November 2017 – November 2020 Board Meetings attended: 11 Human Resources and Remuneration Audit and Risk Management Committee Committee Meetings attended: 3 Meetings attended: 4
SALLY DARKE Non-Executive Director Ms Darke was appointed a Director in August 2016 and is a member of the Human Resources and Remuneration Committee. Current term: August 2016 – November 2019 Board Meetings attended: 11 Human Resources and Remuneration Audit and Risk Management Committee Committee Meetings attended: 3 Meetings attended: 4
LUCY GREGG Non-Executive Director Ms Gregg was appointed a Director in August 2016 and was a member of the Audit and Risk Management Committee. Ms Gregg resigned in June 2018. Current term: August 2016 – June 2018 Board Meetings attended: 10 Human Resources and Remuneration Audit and Risk Management Committee Committee Meetings attended: 3 Meetings attended: 2
The expiry date of all Director terms in November is the date on which the AGM will be held in the respective year. Directors regularly attend committee meetings of which they are not formal members. Catherine Murdoch acted as an Intern Director between 1 January 2017 and 31 December 2017. Ellen Witte joined as an Intern Director on 1 January 2018.
43 TASPORTS ANNUAL REPORT 2017–2018
In addition to TasPorts, the companies that comprise the TasPorts’ management of the Burnie Woodchip Export Economic Entity are: Terminal as a multi-user facility has been key to improving Bass Island Line Pty Ltd export access and confidence in the forestry industry. 100% owned by TasPorts – incorporated in February 2017 TasPorts has continued its investment in the facility to to operate the King Island shipping service. improve productivity and supply chain efficiency. Southern Export Terminals (SET) is a joint venture Southern Export Terminals Pty Ltd between TasPorts and Qube Ports established in 50% owned by TasPorts and 50% by Qube Ports – December 2016 to provide a southern Tasmanian export incorporated in December 2016 to operate the forestry gateway for bulk and containerised logs. During the export terminal in Hobart. first 18 months of operations the operating model has King Island Port Corporation Pty Ltd been established and volumes have continued to grow 100% owned by TasPorts – non trading. across both bulk log and containerised log exports. Flinders Island Port Corporation Pty Ltd SET recorded a loss for the year of $0.2 million. 100% owned by TasPorts – non trading. The Joint Venture is structured so that its overhead costs are recovered once volumes meet threshold TasPorts reported a net profit of $9.0 million in 2018 levels. The profitability associated with the operations before impairment losses of $4.7 million for Bass Island is earned by the joint venture partners through the Line and $0.2 million for Southern Export Terminals, provision of port and marine services (TasPorts) and compared to a net profit of $4.8 million in 2017. stevedoring services (Qube Ports). The operation of The impairment losses were on the loans from TasPorts SET has reinforced the need to have a cost effective, to the entities. The loans were impaired as the entities industry benchmarked log export facility in the south do not have sufficient assets to repay the full amount of the state. of their loans from TasPorts. The loan impairments are TasPorts continued its significant infrastructure eliminated on consolidation in the Economic Entity. investment including $16.5 million on remediation and The Economic Entity reported a net profit of $5.8 renewal of existing port and marine infrastructure and million compared to a net profit of $3.1 million in 2017. a further $19.4 million on new infrastructure. Major This represents an 87% increase in consolidated net profit investments included acquisition of the third pilot boat, compared with the previous financial year. one tug boat and the wharf and terminal rebuild at The net profit of the Economic Entity was affected Strahan. by the net after tax loss of Bass Island Line (BIL) of TasPorts has finalised its Port Master Plans for each $3 million. BIL was established in 2017 by TasPorts at the port in Tasmania. The plans ensure a clear vision for request of the Tasmanian State Government to provide growth and renewal across our ports for the next 10-15 a shipping service between King Island and mainland years. The Port Master Plans will provide a guide for Tasmania. During the first 15 months of operations BIL future developments and investments in our ports, experienced trading losses due to significant start-up while supporting existing customer growth and costs and the transition from a transhipment service, attracting new customers and trade across a variety with a chartered vessel, to a new service between of commodity types. Victoria, King Island and mainland Tasmania using a TasPorts continues to make a significant investment newly acquired vessel, John Duigan. BIL is committed in safety culture to improve safety performance and to providing a safe and reliable shipping service for workforce participation. the King Island community. Management has a clear During the year the principal activities of the Economic strategy to deliver a cost efficient and financially Entity were owning and operating the following facilities sustainable service. This includes partnering with the and services: private sector to deliver low cost and high productivity • Operational port infrastructure, property and services services including ship management, stevedoring and at Burnie, Devonport, Hobart, Bell Bay, Port Latta and agency services. King Island (Grassy); The continued improvement in TasPorts’ overall • Other port infrastructure and properties at Strahan, financial performance, underpinned by freight growth, Smithton, Stanley, King Island (Currie) and Flinders cost controls and productivity gains, was experienced Island (Whitemark and Lady Barron); across all elements of the business including port • Shipping services between mainland Tasmania and services, marine services, logistics services, property King Island; and the Devonport Airport. • State-wide towage services; Freight volumes continued to grow. Statewide volumes • State-wide pilotage services; of 15.2 million tonnes compared with 14.3 million tonnes in • Airport facilities and related properties at Devonport 2017 representing a 7% growth. This is the highest growth Airport; in freight volumes since the global financial crisis in 2008 • Transport and plant hire at Burnie, Devonport, Hobart, and the restructuring of the Tasmanian forestry industry. Launceston, Bell Bay, Burnie, King Island and Flinders Freight growth was experienced across all Island; commodities including TEUs, forestry, dry bulk and • Fuel distribution at Hobart, King Island and Flinders fuel. TEUs of 530,000 compared with 475,000 in 2017, Island; and representing a 12% growth. This is the highest since • Vessel slipping services at Hobart, Strahan, Flinders TasPorts was formed in 2006. The growth in TEUs was Island and King Island. supported by the expansion of shipping services and TasPorts is committed to achieving a high standard private sector investment to increase Bass Strait capacity. of environmental performance. The establishment of
44 an integrated environmental and safety management paid, or agreed to pay, a premium in respect of a contract system is ongoing to monitor risk and ensure compliance insuring against a liability incurred by an auditor. with statutory requirements. No statutory breaches were No person has applied for leave of Court to bring notified during the financial year. proceedings on behalf of the Economic Entity or The Economic Entity has paid insurance premiums for intervene in any proceedings to which the Economic the year of $41,514 in respect of directors’ and officers’ Entity is a party for the purpose of taking responsibility liability, for current and former directors. The insurance on behalf of the Economic Entity for all or any part of premiums relate to: those proceedings. The Economic Entity was not a party • costs and expenses incurred by relevant officers in to any such proceedings during the year. defending proceedings, whether civil or criminal and whatever their outcome; and AUDITOR’S INDEPENDENCE DECLARATION • other liabilities that may arise from their position, with A copy of the auditor’s independence declaration as the exception of conduct involving a wilful breach of required under section 307C of the Corporations Act duty or improper use of information or position to gain 2001 is set out on page 6. a personal advantage. Signed in accordance with a resolution of the Board TasPorts has entered into a deed of access, indemnity of Directors: and insurance with directors and officers. Pursuant to the deed TasPorts undertakes to: • maintain certain documents and to provide directors and officers access to those documents; Mr Stephen Bradford • indemnify the directors and officers for certain Non-Executive Director and Chairman liabilities; and 7 August 2018 • maintain an insurance policy covering the directors and officers. During or since the end of the financial year the Economic Entity has not indemnified or made a relevant Ms Tracy Matthews agreement to indemnify an auditor of the company Non-Executive Director against a liability incurred. In addition, TasPorts has not 7 August 2018
45 TASPORTS ANNUAL REPORT 2017–2018
AUDITOR’S INDEPENDENCE DECLARATION
For the year ended 30 June 2018
8 August 2018
The Board of Directors Tasmanian Ports Corporation Pty Ltd GPO Box 202 HOBART TAS 7001
Dear Board Members
Auditor’s Independence Declaration
In accordance with section 307C of the Corporations Act 2001, I provide the following declaration of independence.
As the auditor of the financial report of Tasmanian Ports Corporation Pty Ltd for the financial year ended 30 June 2018, I declare that to the best of my knowledge and belief, there have been no contraventions of:
(a) the auditor independence requirements of the Corporations Act 2001 in relation to the audit (b) any applicable code of professional conduct in relation to the audit.
In accordance with the Corporations Act 2001 a copy of this declaration must be included in the Directors’ report.
Yours sincerely
Ric De Santi Deputy Auditor-General Delegate of the Auditor-General
46 DIRECTORS’ DECLARATION
For the year ended 30 June 2018
The Directors declare that: Signed in accordance with a resolution of the Directors (a) The attached financial statements and notes thereto made pursuant to section 295(5) of the Corporations Act comply with Australian Accounting Standards and 2001 (Cth). Australian Accounting Interpretations adopted by On behalf of the Directors. the Australian Accounting Standards Board; (b) The attached financial statements and notes thereto give a true and fair view of the financial position and Mr Stephen Bradford performance of the Economic Entity; Non-Executive Director and Chairman (c) In the Directors’ opinion, the attached financial 7 August 2018 statements and notes thereto are in accordance with the Corporations Act 2001 (Cth); (d) In the Directors’ opinion, there are reasonable grounds to believe that the Economic Entity will be Ms Tracy Matthews able to pay its debts as and when they become due Non-Executive Director and payable; and 7 August 2018 (e) The Directors have been given declarations as set out in Section 295A of the Corporations Act 2001 (Cth) from the Chief Executive Officer and Chief Financial Officer for the year ended 30 June 2018.
47 TASPORTS ANNUAL REPORT 2017–2018
STATEMENT OF PROFIT OR LOSS & OTHER COMPREHENSIVE INCOME
For the year ended 30 June 2018
NOTE ECONOMIC ENTITY
2018 2017 $ $
REVENUES Trade revenues A1 122,321,946 103,632,614 Other revenues A1 659,556 964,478
TOTAL REVENUES 122,981,502 104,597,092
Cost of goods sold (8,279,503) (8,448,919) Employee benefits (38,518,214) (35,536,784) Property costs (6,803,643) (6,302,074) Equipment hire (1,781,422) (552,239) Maintenance (15,115,925) (16,909,905) Operational expenditure (10,164,421) (3,920,911) Administration (9,729,610) (6,348,554) Finance (1,796,185) (1,802,787) Depreciation and amortisation B4 (14,829,826) (11,540,478) Impairment of community asset projects B4 (1,841,416) (3,436,020) Impairment of plant and equipment B4 (318,246) – Current year revaluation decrement of infrastructure assets B4 – (1,790,262) Prior revaluation decrements of infrastructure assets reversed B4 – 2,891,449 Other expenses (4,963,905) (4,508,835)
TOTAL EXPENSES (114,142,316) (98,206,319)
PROFIT/(LOSS) BEFORE INCOME TAX 8,839,186 6,390,773 Income tax (expense)/credit A2 (2,928,223) (3,169,445) Share of profit/(loss) of equity accounted investee, net of tax D8 (117,342) (54,924)
PROFIT/(LOSS) AFTER INCOME TAX 5,793,621 3,166,404
OTHER COMPREHENSIVE INCOME Items that will not be classified to profit or loss Increase/(decrease) in asset revaluation surplus B4 – 43,841,661 Income tax (expense)/benefit on asset revaluation 308,379 (12,082,243) Other comprehensive income/(loss) for the year, net of tax 308,379 31,759,418
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR 6,102,000 34,925,822
The accompanying notes form part of these financial statements.
48 STATEMENT OF FINANCIAL POSITION
For the year ended 30 June 2018
NOTE ECONOMIC ENTITY
2018 2017 $ $
ASSETS
Current assets Cash and cash equivalents A3 22,990,257 39,302,644 Trade and other receivables B1 12,110,800 10,084,561 Inventories B2 1,272,449 813,171 Other current assets B1 1,249,066 1,627,297 Assets classified as held for sale B3 353,565 290,223
TOTAL CURRENT ASSETS 37,976,137 52,117,896
NON-CURRENT ASSETS Property, plant and equipment B4 269,766,608 254,416,291 Goodwill B5 2,800,516 2,800,516 Deferred tax asset A2 2,749,727 2,885,693
TOTAL NON-CURRENT ASSETS 275,316,851 260,102,500
TOTAL ASSETS 313,292,988 312,220,396
LIABILITIES Current liabilities Trade and other payables B6 9,931,720 9,061,188 Current tax liability A2 3,099,101 3,306,569 Short-term borrowings D1 7,500,000 - Short-term employee benefits C1 5,467,345 5,321,054 Short-term provisions B7 203,999 86,658
TOTAL CURRENT LIABILITIES 26,202,165 17,775,469
NON-CURRENT LIABILITIES Long-term borrowings D1 19,833,663 27,333,663 Deferred tax liability A2 22,544,513 25,501,160 Long-term employee benefits C1 912,397 1,064,988 Long-term provisions B7 95,207 126,942
TOTAL NON-CURRENT LIABILITIES 43,385,780 54,026,753
TOTAL LIABILITIES 69,587,945 71,802,222
NET ASSETS 243,705,043 240,418,174
EQUITY Issued capital D2 135,427,387 135,427,387 Reserves D2 130,684,719 130,577,968 Retained earnings/(accumulated losses) (22,407,063) (25,587,181)
TOTAL EQUITY 243,705,043 240,418,174
The accompanying notes form part of these financial statements.
49 TASPORTS ANNUAL REPORT 2017–2018
STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2018
ISSUED CAPITAL
RETAINED EARNINGS/ ORDINARY (ACCUMULATED NOTE SHARES EQUITY LOSSES) RESERVES TOTAL
$ $ $ $
ECONOMIC ENTITY
Balance at 1 July 2016 2 127,927,385 (27,392,337) 98,827,350 199,362,400 Profit/(loss) attributable to members – – 3,166,404 – 3,166,404 Total other comprehensive income/(loss) – – – 31,759,418 31,759,418 for the year Dividends paid – – (1,370,048) – (1,370,048) Disposal of revalued assets transferred – – 8,800 (8,800) – from reserves to retained earnings/ (accumulated losses) Equity contribution – 7,500,000 – – 7,500,000
BALANCE AT 30 JUNE 2017 2 135,427,385 (25,587,181) 130,577,968 240,418,174
Profit/(loss) attributable to members – – 5,793,621 – 5,793,621 Total other comprehensive income/(loss) – – – 308,379 308,379 for the year Dividends paid – – (2,815,131) – (2,815,131) Disposal of revalued assets transferred – – 201,628 (201,628) – from reserves to retained earnings/ (accumulated losses)
BALANCE AT 30 JUNE 2018 D2 2 135,427,385 (22,407,063) 130,684,719 243,705,043
The accompanying notes form part of these financial statements.
50 STATEMENT OF CASH FLOWS
For the year ended 30 June 2018
NOTE ECONOMIC ENTITY
2018 2017 $ $
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 127,547,034 108,320,766 Cash paid to suppliers and employees (101,201,885) (90,810,991) Interest received 236,046 860,499 Income tax paid (5,647,994) (978,962)
NET CASH FROM OPERATING ACTIVITIES A3 20,933,201 17,391,312
CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of equity accounted investee – (1) Acquisition of property, plant and equipment (33,281,513) (16,704,058) Proceeds from sale of property, plant and equipment 647,241 438,485
NET CASH FROM/(USED IN) INVESTING ACTIVITIES (32,634,272) (16,265,574)
CASH FLOWS FROM FINANCING ACTIVITIES Advance to equity accounted investee – (199,999) Loan repayment – (250,000) Finance costs (1,796,185) (1,802,787) Equity contribution – 7,500,000 Dividends paid (2,815,131) (1,370,048)
NET CASH FROM/(USED IN) FINANCING ACTIVITIES (4,611,316) 3,877,166
Net increase/(decrease) in cash held (16,312,387) 5,002,904 Cash at beginning of financial year 39,302,644 34,299,740
CASH AT END OF FINANCIAL YEAR A3 22,990,257 39,302,644
The accompanying notes form part of these financial statements.
51 TASPORTS ANNUAL REPORT 2017–2018
52 NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2018
INFORMATION ABOUT THIS REPORT D FINANCING, CAPITAL STRUCTURE Basis of preparation AND RELATED PARTY TRANSACTIONS Principles of consolidation D1 Borrowings Comparative figures D2 Issued capital and reserves Critical accounting estimates and judgments D3 Ultimate owner D4 Controlled entities A FINANCIAL PERFORMANCE D5 Related party transactions – subsidiary and joint A1 Revenues venture A2 Taxation D6 Parent entity information – Tasmanian Ports A3 Cash flows Corporation Pty Ltd D7 Subsidiary information – Bass Island Line Pty Ltd B ASSETS AND LIABILITIES D8 Interest in equity accounted investees – Southern B1 Receivables and other assets Export Terminals Pty Ltd B2 Inventories D9 Financial Instruments B3 Assets held for sale B4 Property, plant and equipment E ADDITIONAL INFORMATION B5 Goodwill E1 Capital and leasing commitments B6 Trade and other payables E2 Auditors’ remuneration B7 Provisions E3 Contingent liabilities E4 Other accounting policies C PEOPLE E5 Company details C1 Employee benefits C2 Related party transactions – Director and key management personnel
53 TASPORTS ANNUAL REPORT 2017–2018
INFORMATION ABOUT THIS REPORT
(a) Basis of preparation The financial statements were authorised for issue by the Directors on 7 August 2018. The financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards (AASB’s) and Australian Accounting Interpretations adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The financial statements comprise the consolidated financial statements of the Economic Entity. Financial information for the parent entity is reported in note D6. Financial information for the subsidiary is reported in note D7. Financial information for the Joint Venture is reported in note D8. Accounting Standards include Australian Accounting Standards. Compliance with Australian Accounting Standards ensures that the financial statements and notes of the Economic Entity comply with International Financial Reporting Standards (‘IFRS’). The material accounting policies adopted have been stated throughout the notes to the financial statements. The accounting policies have been consistently applied, unless otherwise stated. The financial statements are presented in Australian dollars. The financial statements have been prepared on an accruals basis. Infrastructure assets have been measured at fair value. All other assets and liabilities have been measured at historical cost.
(b) Principles of consolidation A controlled entity is any entity over which TasPorts has the power to control the financial and operating policies so as to obtain benefits from its activities. A list of controlled entities is contained within note D4. All controlled entities have a June year-end. All inter-company balances and transactions with subsidiary companies in the Economic Entity have been eliminated on consolidation. The accounting policies of controlled entities are consistent with those policies applied by TasPorts. TasPorts’ interest in equity accounted investees comprise an interest in a Joint Venture. A Joint Venture is an arrangement in which TasPorts has joint control, whereby TasPorts has rights to the net assets of the arrangement, rather than rights to its assets and obligations for its liabilities. The interest in the Joint Venture is accounted for using the equity method. It is initially recognised at cost. Subsqequent to initial recognition, the consolidated financial statements include TasPorts’ share of the profit or loss and other comprehensive income of the equity accounted investee.
(c) Comparative figures The previous period’s figures are provided in the financial statements for comparative purposes. Where there has been reclassification of items in the financial statements, the prior year comparatives have also been reclassified to ensure comparability with the current reporting period.
(d) Critical accounting estimates and judgments Estimates and judgments incorporated into the financial statements are based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and internally.
(e) Goods and services tax (GST) Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. Cash flows are presented in the Statement of Cash Flows on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the Australian Taxation Office.
A FINANCIAL PERFORMANCE
A1 REVENUES
ECONOMIC ENTITY
2018 2017 $ $ TRADE REVENUES Sale of goods 9,735,452 9,941,874 Seaport 93,275,107 80,693,376 Airport 4,034,129 3,601,422 Rent and operating leases 7,501,728 7,376,745 Freight revenue 7,775,530 2,019,197
TOTAL TRADE REVENUES 122,321,946 103,632,614
Other revenues Net gain/(loss) on disposal of property, plant and equipment 122,439 103,979 Investment interest received 537,117 860,499
TOTAL OTHER REVENUES 659,556 964,478
TOTAL REVENUES 122,981,502 104,597,092
54 A1 REVENUES (CONTINUED)
Recognition and measurement Revenues from services rendered is recognised in proportion to the stage of completion of the transaction at the reporting date. Rental income is recognised on a straight line basis over the term of the lease. Income from operating leases, where substantially all the risks and benefits remain with the lessor, are credited as income in the periods in which they are earned. Interest revenue is recognised as earned.
A2 TAXATION
ECONOMIC ENTITY
2018 2017 $ $
(A) INCOME TAX EXPENSE
Reconciliation of income tax expense Current income tax relating to prior years (35,903) 290,856 Current income tax expense 5,980,096 4,638,696 Decrease/(increase) in deferred tax asset (106,879) (41,595) Decrease/(increase) in deferred tax liability (2,909,091) 10,414,678 Movement posted direct to equity – (12,133,190)
IMPLIED INCOME TAX EXPENSE 2,928,223 3,169,445
Recognised in the Statement of Profit or Loss and Other Comprehensive Income Current tax expense Current period 5,980,096 4,000,977 Adjustments for prior periods (539,571) (126,380)
5,440,525 3,874,597
Deferred tax expense Decrease/(increase) in deferred tax asset (106,879) 632,943 Increase/(decrease) in deferred tax liability (2,909,091) (1,755,330) Adjustments for prior periods 503,668 417,235
(2,512,302) (705,152)
IMPLIED INCOME TAX EXPENSE IN THE STATEMENT OF PROFIT OR LOSS 2,928,223 3,169,445 AND OTHER COMPREHENSIVE INCOME
Attributable to:
CONTINUING OPERATIONS 2,928,223 3,169,445
Numerical reconciliation between tax expense and pre-tax accounting profit Pre tax profit/(loss) for the period 8,839,186 6,390,773
INCOME TAX USING THE TAX RATE OF 30% 2,651,756 1,917,231
Add/(deduct) tax effect of differences Permanent depreciation and disposal on non-temporary assets 335,445 470,668 Tax depreciation (33,710) (26,788) Non-deductible expenses 10,635 6,419 Unrecognised tax losses – 511,280 Prior period over/(under) provision (35,903) 290,635
INCOME TAX EXPENSE 2,928,223 3,169,445
Recognition and measurement The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or non-deductible items. It is calculated using tax rates that have been enacted at the reporting date.
(B) CURRENT TAX LIABILITY
Opening balance 3,306,569 461,880 Tax paid in respect of prior years (3,573,012) (561,890) Tax paid in respect of current year (2,074,982) (417,072) Over/(under) provision of tax in prior years (539,571) (177,326) Current year tax provision 5,980,097 4,000,977
CLOSING BALANCE 3,099,101 3,306,569
55 TASPORTS ANNUAL REPORT 2017–2018
A2 TAXATION (CONTINUED)
(C) DEFERRED TAX ASSET AND LIABILITY
ECONOMIC ENTITY:
BALANCE PRIOR YEAR BALANCE PRIOR YEAR BALANCE 30 JUNE (UNDER)/OVER CURRENT YEAR RECOGNISED 30 JUNE (UNDER)/OVER CURRENT YEAR RECOGNISED 30 JUNE 2016 PROVISION MOVEMENT IN EQUITY 2017 PROVISION MOVEMENT IN EQUITY 2018
$ $ $ $ $ $ $ $ $ DEFERRED TAX ASSET
Tax losses 1,079,465 38,925 (637,721) – 480,669 (453,055) – – 27,614 Property plant & equipment – – 12,522 – 12,522 – 273,001 – 285,523 Employee provisions 1,693,970 – 46,705 – 1,740,675 – – – 1,740,675 Accounting costs capitalised for tax 185,171 – 76,923 – 262,094 – – – 262,094 Prepaid revenue 515,649 – 7,043 – 522,692 – (9,278) – 513,414 Provisions 1,455 – 19,676 – 21,131 – 67,859 – 88,990 Payables – – (72,630) – (72,630) – (5,364) – (77,994) Deferred income – – (48,521) – (48,521) – – – (48,521) Other 98,368 (131,185) (122) – (32,939) (62,793) 53,664 – (42,068)
3,574,078 (92,260) (596,125) – 2,885,693 (515,848) 379,882 – 2,749,727
BALANCE PRIOR YEAR RECOGNISED BALANCE PRIOR YEAR RECOGNISED BALANCE 30 JUNE UNDER/(OVER) IN INCOME RECOGNISED 30 JUNE UNDER/(OVER) IN INCOME RECOGNISED 30 JUNE 2016 PROVISION STATEMENT IN EQUITY 2017 PROVISION STATEMENT IN EQUITY 2018
$ $ $ $ $ $ DEFERRED TAX LIABILITY
Property, plant and equipment 14,713,008 325,630 473,080 12,133,190 27,644,908 (674,320) (1,113,819) (219,864) 25,636,905 Prepayments/receivables 48,500 – 11,376 – 59,876 – 26,069 – 85,945 Payables – – 9,260 – 9,260 – (413,340) – (404,080) Other – – (2,212,884) – (2,212,884) 353,706 (1,134,943) 219,864 (2,774,257)
14,761,508 325,630 (1,719,168) 12,133,190 25,501,160 (320,614) (2,636,033) – 22,544,513
Recognition and measurement Deferred tax is accounted for using the liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss. Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the Statement of Profit or Loss and Other Comprehensive Income except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity. Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which deductible temporary differences can be utilised. The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in the income taxation legislation and the anticipation that the Economic Entity will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.
Tax consolidation The parent entity and its wholly owned Australian resident subsidiaries formed a tax consolidated group in the 2018 financial year, with effect from 1 July 2016 and are therefore taxed as a single entity from that date. The head entity within the tax consolidated group is TasPorts.
56 A2 TAXATION (CONTINUED)
(C) DEFERRED TAX ASSET AND LIABILITY
ECONOMIC ENTITY:
BALANCE PRIOR YEAR BALANCE PRIOR YEAR BALANCE 30 JUNE (UNDER)/OVER CURRENT YEAR RECOGNISED 30 JUNE (UNDER)/OVER CURRENT YEAR RECOGNISED 30 JUNE 2016 PROVISION MOVEMENT IN EQUITY 2017 PROVISION MOVEMENT IN EQUITY 2018
$ $ $ $ $ $ $ $ $ DEFERRED TAX ASSET
Tax losses 1,079,465 38,925 (637,721) – 480,669 (453,055) – – 27,614 Property plant & equipment – – 12,522 – 12,522 – 273,001 – 285,523 Employee provisions 1,693,970 – 46,705 – 1,740,675 – – – 1,740,675 Accounting costs capitalised for tax 185,171 – 76,923 – 262,094 – – – 262,094 Prepaid revenue 515,649 – 7,043 – 522,692 – (9,278) – 513,414 Provisions 1,455 – 19,676 – 21,131 – 67,859 – 88,990 Payables – – (72,630) – (72,630) – (5,364) – (77,994) Deferred income – – (48,521) – (48,521) – – – (48,521) Other 98,368 (131,185) (122) – (32,939) (62,793) 53,664 – (42,068)
3,574,078 (92,260) (596,125) – 2,885,693 (515,848) 379,882 – 2,749,727
BALANCE PRIOR YEAR RECOGNISED BALANCE PRIOR YEAR RECOGNISED BALANCE 30 JUNE UNDER/(OVER) IN INCOME RECOGNISED 30 JUNE UNDER/(OVER) IN INCOME RECOGNISED 30 JUNE 2016 PROVISION STATEMENT IN EQUITY 2017 PROVISION STATEMENT IN EQUITY 2018
$ $ $ $ $ $ DEFERRED TAX LIABILITY
Property, plant and equipment 14,713,008 325,630 473,080 12,133,190 27,644,908 (674,320) (1,113,819) (219,864) 25,636,905 Prepayments/receivables 48,500 – 11,376 – 59,876 – 26,069 – 85,945 Payables – – 9,260 – 9,260 – (413,340) – (404,080) Other – – (2,212,884) – (2,212,884) 353,706 (1,134,943) 219,864 (2,774,257)
14,761,508 325,630 (1,719,168) 12,133,190 25,501,160 (320,614) (2,636,033) – 22,544,513
57 TASPORTS ANNUAL REPORT 2017–2018
A3 CASH FLOWS
ECONOMIC ENTITY
2018 2017 $ $ (A) RECONCILIATION OF CASH FLOW FROM OPERATIONS WITH PROFIT AFTER INCOME TAX
Profit/(loss) for the year 5,793,621 3,166,404
Adjustments for: Depreciation and amortisation 14,829,826 11,540,478 Current year impairment of community asset projects 1,841,416 3,436,020 Current year impairment of plant and equipment 318,246 – Prior revaluation decrements of infrastructure assets reversed – (2,891,449) Revaluation decrement of infrastructure assets – 1,790,262 Finance charges 1,796,185 1,802,787 Share of (profit)/loss from equity accounted investee, net of tax 117,342 54,924 Net (gain)/loss on disposal of property, plant and equipment (122,439) (103,979) (Increase)/decrease in trade and other receivables (2,070,381) 195,085 (Increase)/decrease in other current assets 2,356,717 (759,029) (Increase)/decrease in inventories (459,278) (145,993) (Increase)/decrease in interest receivable 20,469 26,838 Increase/(decrease) in non-current liabilities 1 257,213 Increase/(decrease) in income taxes payable (2,206,640) 2,844,690 Increase/(decrease) in employee benefits (6,300) (2,892) Increase/(decrease) in trade and other payables 1,045,485 (3,165,841) Increase/(decrease) in deferred taxes payable (2,321,069) (654,206)
NET CASH FROM OPERATING ACTIVITIES 20,933,201 17,391,312
(B) CASH AND CASH EQUIVALENTS
Current Cash at bank and on hand 22,990,257 9,302,644 Short-term bank deposits – 30,000,000
22,990,257 39,302,644
The effective average interest rate on cash and cash equivalents for the year was 1.6% (2017: 2.3%).
Recognition and measurement Cash and cash equivalents include cash on hand and deposits held at call with financial institutions.
(C) RECONCILIATION OF MOVEMENTS IN LIABILITIES TO CASH FLOWS ARISING FROM FINANCING ACTIVITIES
Borrowings Opening Balance 27,333,663 27,583,663
Changes from financing activities – Cash repayments – (250,000)
CLOSING BALANCE 27,333,663 27,333,663
58 B ASSETS AND LIABILITIES
B1 RECEIVABLES AND OTHER ASSETS
ECONOMIC ENTITY
TRADE AND OTHER RECEIVABLES 2018 2017 $ $
Current Trade and other receivables 11,914,023 9,892,210 Less: Impairment of receivables (3,222) (7,648)
11,910,801 9,884,562
Loan – Southern Export Terminals Pty Ltd 199,999 199,999
TOTAL TRADE AND OTHER RECEIVABLES 12,110,800 10,084,561
Other current assets Accrued revenue 764,890 1,174,360 Prepayments 484,176 452,937
TOTAL OTHER CURRENT ASSETS 1,249,066 1,627,297
Recognition and measurement Receivables and other assets are stated at their cost less impairment adjustments. The loan to Southern Export Terminals Pty Ltd is unsecured and interest free.
B2 INVENTORIES
ECONOMIC ENTITY
2018 2017 $ $ Current
INVENTORIES AT COST 1,272,449 813,171
Recognition and measurement Inventories (fuel for resale and consumables) are measured at the lower of cost and net realisable value. Costs are assigned on the first-in first- out principle.
B3 ASSETS HELD FOR SALE
ECONOMIC ENTITY 2018 2017 $ $
ASSETS CLASSIFIED AS HELD FOR SALE 353,565 290,223
The 2018 assets held for sale in the Economic Entity are two tug vessels. The 2017 assets held for sale in the Economic Entity were the assets of the Loorana Limes and Mine and freehold land on Riflerange Road on King Island. Both assets were owned by King Island Ports Corporation Pty Ltd and were sold in the 2018 financial year.
59 TASPORTS ANNUAL REPORT 2017–2018
B4 PROPERTY, PLANT AND EQUIPMENT
ECONOMIC ENTITY:
HARBOUR LAND & LAND INFRA- IMPROVE- FLOATING PLANT AND CAPITAL LAND BUILDINGS BUILDINGS STRUCTURE MENTS WHARVES PLANT EQUIPMENT DREDGING WIP TOTAL
2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 $ $ $ $ $ $ $ $ $ $ $
At cost – – – – – – 52,109,426 53,180,148 17,637,099 6,270,883 129,197,556 At fair value 29,848,789 31,579,043 61,427,832 21,871,999 30,216,588 89,112,418 – – – – 202,628,837 Accumulated depreciation – (2,272,521) (2,272,521) (1,395,061) (1,383,466) (4,873,267) (11,202,082) (31,715,821) (6,967,782) – (59,810,000) Accumulated impairment losses – – – (181,051) – – (830,038) (1,238,696) – – (2,249,785)
TOTAL PROPERTY, PLANT AND EQUIPMENT AT 30 JUNE 2018 29,848,789 29,306,522 59,155,311 20,295,887 28,833,122 84,239,151 40,077,306 20,225,631 10,669,317 6,270,883 269,766,608
2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 $ $ $ $ $ $ $ $ $ $ $
At cost – – – – – – 29,236,905 50,091,426 17,637,099 6,785,973 103,751,403 At fair value 29,848,789 31,451,355 61,300,144 20,062,344 30,216,587 87,370,349 – – – – 198,949,424 Accumulated depreciation – – – – – – (10,622,840) (29,841,083) (6,803,001) – (47,266,924) Accumulated impairment losses – – – – – – (500,799) (516,813) – – (1,017,612)
TOTAL PROPERTY, PLANT AND EQUIPMENT AT 30 JUNE 2017 29,848,789 31,451,355 61,300,144 20,062,344 30,216,587 87,370,349 18,113,266 19,733,530 10,834,098 6,785,973 254,416,291
Movements in carrying amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year
FAIR VALUE COST
HARBOUR LAND INFRA- IMPROVE- FLOATING PLANT AND CAPITAL LAND LAND BUILDINGS BUILDINGS STRUCTURE MENTS WHARVES PLANT EQUIPMENT DREDGING WIP TOTAL
$ $ $ $ $ $ $ $ $ $ $ $ LEVEL 2 LEVEL 3 LEVEL 2 LEVEL 3 LEVEL 3 LEVEL 3 LEVEL 3
Opening balance 1 July 2016 19,735,286 8,652,795 14,105,326 13,542,814 16,169,056 14,438,332 65,011,045 12,750,654 17,640,792 11,007,363 15,317,150 208,370,613 Additions 219,876 – – 184,576 13,819 – 5,625 23,052 2,854,453 – 13,289,560 16,590,961 Disposals – – – – – – – (74,248) (147,162) – – (221,410) Transfers between levels of assets (2,295,191) 2,295,191 (13,092,702) 13,092,702 – – – – – – – – WIP capitalised – – – 339,029 9,390,564 – – 6,693,649 1,961,073 – (18,384,315) – WIP expensed – – – - – – – – 402 – (402) – Depreciation expense – – – (1,224,812) (1,512,115) (591,749) (4,182,668) (1,279,841) (2,576,028) (173,265) – (11,540,478) Current year impairment of community asset projects – – – – – – – – – – (3,436,020) (3,436,020) Current year revaluation decrement of infrastructure assets – – – 304,985 226,422 – 2,360,042 – – – – 2,891,449 Prior revaluation decrement of infrastructure assets (476,066) – – (446,490) (251,101) – (616,605) – – – – (1,790,262) Increase/(decrease) in asset revaluation surplus 2,720,473 (732,086) 871,894 3,774,033 (3,974,301) 16,370,004 24,792,910 – 18,734 – – 43,841,661 Transfer (to)/from assets held for sale (271,489) – – – – – – – (18,734) – – (290,223)
BALANCE AT 30 JUNE 2017 19,632,889 10,215,900 1,884,518 29,566,837 20,062,344 30,216,587 87,370,349 18,113,266 19,733,530 10,834,098 6,785,973 254,416,291
Opening Balance 1 July 2017 19,632,889 10,215,900 1,884,518 29,566,837 20,062,344 30,216,587 87,370,349 18,113,266 19,733,530 10,834,098 6,785,973 254,416,291 Additions – – – 116,171 383,929 – – 11,121,907 2,943,052 – 18,336,393 32,901,452 Disposals (271,489) – – – – – – – (226,816) – – (498,305) Transfers between classes of assets – – – – – – – (10,994) 10,994 – – – WIP capitalised – – – 3,130 1,425,724 – 1,742,069 13,591,327 1,073,428 – (17,835,678) – WIP expensed – – – 8,387 – – – 47,133 32,797 – (88,317) – Depreciation expense – – – (2,272,521) (1,395,060) (1,383,465) (4,873,267) (2,113,522) (2,627,210) (164,781) – (14,829,826) Current year impairment of community asset projects – – – – (181,050) – – – (732,878) – (927,488) (1,841,416) Current year impairment of plant and equipment – – – – – – – (318,246) – – – (318,246) Transfer (to)/from assets held for sale 271,489 – – – – – – (353,565) 18,734 – – (63,342)
BALANCE AT 30 JUNE 2018 19,632,889 10,215,900 1,884,518 27,422,004 20,295,887 28,833,122 84,239,151 40,077,306 20,225,631 10,669,317 6,270,883 269,766,608
60 B4 PROPERTY, PLANT AND EQUIPMENT
ECONOMIC ENTITY:
HARBOUR LAND & LAND INFRA- IMPROVE- FLOATING PLANT AND CAPITAL LAND BUILDINGS BUILDINGS STRUCTURE MENTS WHARVES PLANT EQUIPMENT DREDGING WIP TOTAL
2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 $ $ $ $ $ $ $ $ $ $ $
At cost – – – – – – 52,109,426 53,180,148 17,637,099 6,270,883 129,197,556 At fair value 29,848,789 31,579,043 61,427,832 21,871,999 30,216,588 89,112,418 – – – – 202,628,837 Accumulated depreciation – (2,272,521) (2,272,521) (1,395,061) (1,383,466) (4,873,267) (11,202,082) (31,715,821) (6,967,782) – (59,810,000) Accumulated impairment losses – – – (181,051) – – (830,038) (1,238,696) – – (2,249,785)
TOTAL PROPERTY, PLANT AND EQUIPMENT AT 30 JUNE 2018 29,848,789 29,306,522 59,155,311 20,295,887 28,833,122 84,239,151 40,077,306 20,225,631 10,669,317 6,270,883 269,766,608
2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 $ $ $ $ $ $ $ $ $ $ $
At cost – – – – – – 29,236,905 50,091,426 17,637,099 6,785,973 103,751,403 At fair value 29,848,789 31,451,355 61,300,144 20,062,344 30,216,587 87,370,349 – – – – 198,949,424 Accumulated depreciation – – – – – – (10,622,840) (29,841,083) (6,803,001) – (47,266,924) Accumulated impairment losses – – – – – – (500,799) (516,813) – – (1,017,612)
TOTAL PROPERTY, PLANT AND EQUIPMENT AT 30 JUNE 2017 29,848,789 31,451,355 61,300,144 20,062,344 30,216,587 87,370,349 18,113,266 19,733,530 10,834,098 6,785,973 254,416,291
Movements in carrying amounts Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year
FAIR VALUE COST
HARBOUR LAND INFRA- IMPROVE- FLOATING PLANT AND CAPITAL LAND LAND BUILDINGS BUILDINGS STRUCTURE MENTS WHARVES PLANT EQUIPMENT DREDGING WIP TOTAL
$ $ $ $ $ $ $ $ $ $ $ $ LEVEL 2 LEVEL 3 LEVEL 2 LEVEL 3 LEVEL 3 LEVEL 3 LEVEL 3
Opening balance 1 July 2016 19,735,286 8,652,795 14,105,326 13,542,814 16,169,056 14,438,332 65,011,045 12,750,654 17,640,792 11,007,363 15,317,150 208,370,613 Additions 219,876 – – 184,576 13,819 – 5,625 23,052 2,854,453 – 13,289,560 16,590,961 Disposals – – – – – – – (74,248) (147,162) – – (221,410) Transfers between levels of assets (2,295,191) 2,295,191 (13,092,702) 13,092,702 – – – – – – – – WIP capitalised – – – 339,029 9,390,564 – – 6,693,649 1,961,073 – (18,384,315) – WIP expensed – – – - – – – – 402 – (402) – Depreciation expense – – – (1,224,812) (1,512,115) (591,749) (4,182,668) (1,279,841) (2,576,028) (173,265) – (11,540,478) Current year impairment of community asset projects – – – – – – – – – – (3,436,020) (3,436,020) Current year revaluation decrement of infrastructure assets – – – 304,985 226,422 – 2,360,042 – – – – 2,891,449 Prior revaluation decrement of infrastructure assets (476,066) – – (446,490) (251,101) – (616,605) – – – – (1,790,262) Increase/(decrease) in asset revaluation surplus 2,720,473 (732,086) 871,894 3,774,033 (3,974,301) 16,370,004 24,792,910 – 18,734 – – 43,841,661 Transfer (to)/from assets held for sale (271,489) – – – – – – – (18,734) – – (290,223)
BALANCE AT 30 JUNE 2017 19,632,889 10,215,900 1,884,518 29,566,837 20,062,344 30,216,587 87,370,349 18,113,266 19,733,530 10,834,098 6,785,973 254,416,291
Opening Balance 1 July 2017 19,632,889 10,215,900 1,884,518 29,566,837 20,062,344 30,216,587 87,370,349 18,113,266 19,733,530 10,834,098 6,785,973 254,416,291 Additions – – – 116,171 383,929 – – 11,121,907 2,943,052 – 18,336,393 32,901,452 Disposals (271,489) – – – – – – – (226,816) – – (498,305) Transfers between classes of assets – – – – – – – (10,994) 10,994 – – – WIP capitalised – – – 3,130 1,425,724 – 1,742,069 13,591,327 1,073,428 – (17,835,678) – WIP expensed – – – 8,387 – – – 47,133 32,797 – (88,317) – Depreciation expense – – – (2,272,521) (1,395,060) (1,383,465) (4,873,267) (2,113,522) (2,627,210) (164,781) – (14,829,826) Current year impairment of community asset projects – – – – (181,050) – – – (732,878) – (927,488) (1,841,416) Current year impairment of plant and equipment – – – – – – – (318,246) – – – (318,246) Transfer (to)/from assets held for sale 271,489 – – – – – – (353,565) 18,734 – – (63,342)
BALANCE AT 30 JUNE 2018 19,632,889 10,215,900 1,884,518 27,422,004 20,295,887 28,833,122 84,239,151 40,077,306 20,225,631 10,669,317 6,270,883 269,766,608
61 TASPORTS ANNUAL REPORT 2017–2018
B4 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
RECOGNITION AND MEASUREMENT Revaluations of infrastructure assets The Economic Entity conducted a fair value assessment of infrastructure assets as at 30 June 2017. Infrastructure assets refer to land, land infrastructure, buildings, wharves and harbour improvements and are all stated at fair value. Infrastructure assets included in the revaluations are reported at fair value less accumulated depreciation and any impairment. The fair value of infrastructure assets purchased subsequent to the revaluation date is at cost less accumulated depreciation and any impairment. If an asset’s carrying amount decreased as a result of a revaluation the decrease is recognised in the Statement of Profit or Loss and Other Comprehensive Income as an expense except to the extent that it reverses a revaluation increase for the same asset previously recognised in the asset revaluation reserve, in which case the decrease is debited to the asset revaluation reserve to the extent of the increase previously recognised. If an asset’s carrying amount increased as a result of a revaluation, the increase is disclosed in the Statement of Profit or Loss and Other Comprehensive Income under ‘other comprehensive income’ and credited directly to the asset revaluation reserve in equity under the heading of reserves, except to the extent that it reverses a revaluation decrease for the same asset previously recognised in profit or loss, in which case the increase is credited to profit or loss to the extent of the decrease previously recognised. In this exception the resultant carrying amount of the asset will not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no revaluation decrease had previously been recognised. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amounts of the asset and the net amounts are restated to the revalued amounts of the asset. Floating plant, capital dredging and plant and equipment, are stated at cost less accumulated depreciation and impairment losses. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Economic Entity and the cost of the item can be measured reliably. All repairs and maintenance costs are charged to the Statement of Profit or Loss and Other Comprehensive Income during the financial period in which they are incurred. Construction work in progress is stated at cost.
Derecognition On the sale or retirement of a revalued infrastructure asset, the attributable revaluation surplus remaining in the asset revaluation reserve is transferred directly to retained earnings/(accumulated losses). The difference between the sale value and the carrying value of the asset is recognised in the Statement of Profit or Loss and Other Comprehensive Income.
Assessing for impairment The Economic Entity assesses impairment at each reporting date by evaluating conditions specific to the group that may lead to impairment of assets. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Value in use calculations performed in assessing recoverable amounts incorporate a number of key estimates. Any excess of the asset’s carrying value over its recoverable amount is expensed to the Statement of Profit or Loss and Other Comprehensive Income. Where it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs.
Impairment losses The total property, plant and equipment impairment loss recognised for the year amounted to $2,159,662 (2017: $3,436,020).
ECONOMIC ENTITY
2018 2017 $ $ Impairment of current year community asset projects 1,841,416 3,436,020 Impairment of plant and equipment 318,246 –
TOTAL IMPAIRMENT OF PROPERTY PLANT & EQUIPMENT 2,159,662 3,436,020
Recognition and measurement Projects completed or in progress as part of the community asset remediation program that are of a capital nature are capitalised and impaired as costs are incurred. Impairment occurs due to TasPorts generating minimal or no income return on these assets. Plant and Equipment impaired is a marine vessel which is held for sale.
Asset componentisation The components of major assets that have materially different useful lives are accounted for as separate assets and are depreciated separately.
Valuation A valuation of the infrastructure assets of the Economic Entity is periodically undertaken for financial reporting purposes in accordance with Australian Accounting Standards. The effective date of the most recent valuation was 30 June 2017. Infrastructure assets include land, buildings, land infrastructure, harbour improvements and wharves. The fair value assessment is based upon the following: – independent assessment of market value where a market value is readily identifiable; – independent assessment of depreciated replacement cost; or – where the asset’s net cash flows do not support either the market value or the depreciated replacement cost then the asset is valued using the discounted cash flow method (income valuation methodology/value in use).
62 B4 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Fair value hierarchy The Economic Entity is required to classify infrastructure assets into a fair value hierarchy that reflects the significance of the inputs used in determining their fair value. The fair value hierarchy is made up of the following three levels: – Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities that the Economic Entity can access at the measurement date; – Level 2 – inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and – Level 3 – inputs that are unobservable for particular assets or liabilities. The Economic Entity has classified infrastructure assets as follows: – Level 1 – no infrastructure assets are classified at level 1; – Level 2 – land and buildings outside port precinct boundaries; and – Level 3 – land, buildings, land infrastructure, harbour improvements and wharves within port precinct boundaries.
VALUATION TECHNIQUES AND INPUTS Level 2 – valuation techniques and inputs Valuation Technique: An independent valuer was used to value land and buildings outside port precinct boundaries using a market approach that reflects recent transaction prices for similar properties and buildings (comparable in location and size). Inputs: Prices and other relevant information generated by market transactions involving comparable land and buildings were considered.
Level 3 valuation techniques and inputs Valuation Techniques: Land (within port precinct boundaries) – where there is no active market or Land is subject to significant restrictions as to use and/or sale, is valued through the market approach although less market evidence is available. – the land was valued by an independent valuer Land infrastructure, buildings, wharves and harbour improvements are considered specialised assets and valued using the depreciated replacement cost method. Where the asset’s net future cash flows do not support either the market value or the depreciated replacement cost then the asset is valued using the discounted cash flow method (value in use/income valuation methodology). Inputs: – in determining the market value of land and buildings, restrictions on sale or use. – in determining depreciated replacement cost of buildings, land infrastructure, harbour improvements and wharves regard was given to the age and condition of the assets, their estimated replacement cost and current use. – in determining the value in use of buildings, land infrastructure, harbour improvements and wharves, the estimated net future operating cash flows are discounted to their present value. Cash flow inputs are summarised below.
UNOBSERVABLE INPUT INPUT USED RELATIONSHIP OF UNOBSERVABLE INPUTS TO FAIR VALUE
Discount rate An independent assessment of the nominal The higher the discount rate, the lower the pre-tax weighted average cost of capital fair value. (discount rate) of 13.4% per annum. The risk free rate at this time was a 10 year average of the 10 year Australian Commonwealth bond rate of 2.61%.
Terminal value Twenty year discount period with a terminal The lower the discount period, the lower the value equal to the (recurring cash flow in fair value. year 20 divided by the discount rate less the expected growth rate) discounted to the present value by the year 20 discount factor.
Expected growth rate and cost increases Based on current and forecast budgets and The higher the revenue growth rate, the the corporate plan. All other revenue growth higher the fair value. The higher the average and cost increases over the discounting cost increase, the lower the fair value. period are forecast at an average of 2.0% per annum.
Renewal capital expenditure Based on current and forecast budgets and The higher the renewable capital spend, the the corporate plan over the discounting lower the fair value. period.
63 TASPORTS ANNUAL REPORT 2017–2018
B4 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
LEVEL 3 SIGNIFICANT VALUATION INPUTS AND RELATIONSHIP TO FAIR VALUE
ECONOMIC ENTITY
FAIR VALUE SIGNIFICANT $ UNOBSERVABLE AT 30 JUNE VALUATION INPUTS USED IN RELATIONSHIP OF UNOBSERVABLE DESCRIPTION 2018 TECHNIQUE(S) VALUATION INPUTS TO FAIR VALUE
Land 10,215,900 Market Market valuation Value of specialised land increases/ – within port precinct boundaries where approach reflects specialised decreases fair value there is not an active market land – subject to restriction as to use and/or sale
Buildings 27,422,004 Depreciated Consumed For DRC an increase or decrease in the Replacement economic benefit/ estimated useful life of the asset or the Cost (DRC) obsolescence of construction cost of the asset would asset result in higher or lower valuation - within port precinct boundaries where Construction cost there is not an active market per square metre – subject to restriction as to use and/or floor area (m2) sale – specialised buildings with limited alternative uses and/or substantial customisation e.g. airport terminal Income Estimates of cash For Income valuations fluctuations in valuation flows and discount cash flows and discount rate would rate result in higher or lower fair value
Land Infrastructure 20,295,887 Depreciated Consumed For DRC an increase or decrease in the – roads, port hardstands and airport Replacement economic benefit/ estimated useful life of the asset or the runway and apron Cost (DRC) obsolescence of construction cost of the asset would asset result in higher or lower valuation Construction cost per square metre floor area (m2) Income Estimates of cash For Income Valuations fluctuations in Valuation flows and discount cash flows and discount rate would rate result in higher or lower fair value
Harbour Improvements 28,833,122 Depreciated Consumed For DRC an increase or decrease in the – breakwaters and channels Replacement economic benefit/ estimated useful life of the asset or the Cost (DRC) obsolescence of construction cost of the asset would asset result in higher or lower valuation Construction cost Income Estimates of cash For Income Valuations fluctuations in Valuation flows and discount cash flows and discount rate would rate result in higher or lower fair value
Wharves 84,239,151 Depreciated Consumed For DRC an increase or decrease in the Replacement economic benefit/ estimated useful life of the asset or the Cost (DRC) obsolescence of construction cost of the asset would asset result in higher or lower valuation Construction cost Income Estimates of cash For Income Valuations fluctuations in Valuation flows and discount cash flows and discount rate would rate result in higher or lower fair value
TOTAL LEVEL 3 171,006,064 INFRASTRUCTURE ASSETS
ECONOMIC ENTITY
2018 2017 $ $ Depreciation and amortisation of non-current assets expense – buildings 2,272,521 1,224,812 – land infrastructure 1,395,060 1,512,115 – harbour improvements 1,383,465 591,749 – wharves 4,873,267 4,182,668 – floating plant 2,113,522 1,279,841 – capital dredging 164,781 173,265 – plant and equipment 2,627,210 2,576,028
TOTAL DEPRECIATION AND AMORTISATION 14,829,826 11,540,478
64 B4 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Recognition and measurement All assets are depreciated on a straight line basis over their useful lives commencing from the date the asset has been revalued or the date the asset is held ready for use. Where an item of property, plant and equipment comprises individual components for which different useful lives are appropriate, then each component is depreciated separately.
The useful life used for each class of depreciable assets is: Infrastructure assets (fair value) Useful life Buildings 10 to 60 years Land infrastructure (incl.roads, port hardstands and airport runways) 10 to 100 years Wharves 5 to 80 years Harbour improvements 20 to 75 years
Other fixed assets (cost) Floating plant 5 to 35 years Capital dredging (channels, swing basins and berth pockets) 12 to 99 years Plant and equipment 2 to 69 years
B5 GOODWILL
ECONOMIC ENTITY
2018 2017 $ $
NET CARRYING AMOUNT 2,800,516 2,800,516
Recognition and measurement Goodwill represents the difference between the cost of the acquisition and the fair value of the net identifiable assets acquired. Goodwill is stated at cost less any accumulated impairment losses. Goodwill is allocated to a cash-generating unit and is not amortised but tested annually for impairment. This cost is based upon an assessment of the value in use of goodwill compared to its carrying value. Value in use is the present value of the projected cash flows of the cash generating unit over a 20-year period using an estimated growth rate. The cash flows are based on a pre-tax discount rate equal to the weighted average cost of capital plus a margin for business risk. The key assumptions regarding the value in use calculations were budgeted growth in revenues, budgeted gross profit margins and the discount rate.
B6 TRADE AND OTHER PAYABLES
ECONOMIC ENTITY
2018 2017 $ $ Current Trade payables 177,670 220,336 Other payables 8,194,328 7,274,895
8,371,998 7,495,231
Revenue received in advance 1,559,722 1,565,957
9,931,720 9,061,188
Recognition and measurement Trade and other payables are non-interest bearing and are stated at amortised cost.
B7 PROVISIONS
ECONOMIC ENTITY
2018 2017 $ $ Current Deferred revenue 31,734 31,735 Provision for joint venture loss 172,265 54,923
203,999 86,658
Non-current Deferred revenue 95,207 126,942
95,207 126,942
Recognition and measurement Provisions are recognised when there is a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.
65 TASPORTS ANNUAL REPORT 2017–2018
C PEOPLE
C1 EMPLOYEE BENEFITS
ECONOMIC ENTITY
2018 2017 $ $ Current Employee benefits 5,467,345 5,321,054
5,467,345 5,321,054
Non-current Employee benefits 912,397 1,064,988
912,397 1,064,988
Recognition and measurement Employee benefits are measured as the present value of estimated future cash outflows based on the market yields on high quality corporate bonds, estimates of future salary and wage levels and employee periods of service. Liabilities for employee benefits for wages, salaries, annual leave, long service leave or other leave entitlements that are due to be settled within 12 months of the reporting date represent present obligations resulting from employees’ services provided to reporting date, are calculated at undiscounted amounts based on remuneration wage and salary rates expected to be paid as at reporting date. The net obligation in respect of long-term service benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The obligation is calculated using expected future increases in wages, representing a change in calculating the estimate of employee benefits. A provision has been recognised for employee entitlements relating to annual and long service leave. In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based upon historical data. The contributions to employee superannuation funds are charged as expenses when incurred.
C2 RELATED PARTY TRANSACTIONS – DIRECTOR AND KEY MANAGEMENT PERSONNEL
Transactions and obligations between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. Transactions and obligations with related parties during the year ended 30 June 2018 are as follows:
(a) Key management personnel and director transactions and obligations One Senior Executive had related party transactions during 2018, totalling $176,091 for business development services. The services were provided before the Senior Executive was employed by TasPorts on November 1, 2017. $32,270 was paid on November 16, 2017 for services rendered prior to employment. Since this date no further payments have been made. No other KMP (including Directors, Executives and Cabinet Ministers), or their Close Family Members (CFM) or entities that are controlled or jointly controlled by KMP or CFM engaged in related party transactions in 2018 (2017: $0).
(b) Key Management Personnel compensation The aggregate compensation to key management personnel of the company is set out below:
DIRECTOR SENIOR EXECUTIVE REMUNERATION REMUNERATION CONSOLIDATED
2018 2017 2018 2017 2018 2017 $ $ $ $ $ $
Short term employee benefits 283,894 284,041 1,551,686 1,332,866 1,835,580 1,616,907 Post employment benefits 26,970 26,754 134,982 122,099 161,952 148,853 Termination benefits – – – – – – Other long-term benefits – – 50,998 38,591 50,998 38,591
TOTAL 310,864 310,795 1,737,666 1,493,556 2,048,530 1,804,351
For Director remuneration, short term employment benefits includes Director fees, Committee fees and other benefits. Post employment benefits represents superannuation contributions. For Senior Executive remuneration, short term employment benefits incudes base salary, short term incentive payments, vehicles and other benefits. Post employment benefits represents superannuation contributions. Other long-term benefits includes current and non-current annual and long service leave provision movements. The company has complied with the Guidelines for Tasmanian Government Business – Director and Executive Remuneration with one exception. The CEO’s base salary exceeds the approved band determined by the Government Business Executive Remuneration Advisory Panel. Cabinet has approved the CEO base salary on condition it is frozen until such time as it is within the approved band.
66 C2 RELATED PARTY TRANSACTIONS – DIRECTOR AND KEY MANAGEMENT PERSONNEL (CONTINUED)
(c) Remuneration for the Board of Directors The following tables disclose the remuneration details for each person that acted as a Director during the current and previous financial year:
2018 DIRECTOR REMUNERATION 1
DIRECTOR COMMITTEE SUPER- OTHER NAME POSITION PERIOD FEES FEES ANNUATION 2 BENEFITS3 TOTAL
$ $ $ $ $
Non Executive Directors
S G Bradford – Chairperson Full Term 82,293 11,031 8,866 – 102,190 T B Matthews Full Term 41,147 7,475 4,619 – 53,241 D C Tomat Full Term 41,147 7,475 4,619 – 53,241 S A Darke Full Term 41,147 5,516 4,433 – 51,096 L A Gregg Full Term 41,147 5,516 4,433 – 51,096
TOTAL 246,881 37,013 26,970 – 310,864
2017 DIRECTOR REMUNERATION 1
Non Executive Directors
S G Bradford – Chairperson Full Term 80,679 10,815 8,692 - 100,186 T B Matthews Full Term 40,341 7,328 4,529 413 52,611 D C Tomat Full Term 40,341 6,568 4,456 58 51,423 S A Darke from 22 August 2016 34,201 4,050 3,634 286 42,171 L A Gregg from 22 August 2016 34,201 4,050 3,634 322 42,207 B K Berwick to 17 November 2016 16,118 2,928 1,809 1,342 22,197
TOTAL 245,881 35,739 26,754 2,421 310,795
1 Amounts are all forms of consideration paid, payable or provided by the company. 2 Superannuation means the contribution to the superannuation fund of the Director. 3 Other benefits for Directors in 2017 were death and disability insurance premiums and a retirement gift for one Director. The death and disability insurance policies for the Directors ceased at 30 June 2017.
Non-Executive Directors Non-executive Directors are appointed by the Treasurer and Portfolio Minister. Each instrument of appointment is for a maximum period of three years and prescribes the relevant remuneration provisions. Directors can be re-appointed in accordance with the relevant Guidelines for Tasmanian Government Businesses – Board Appointments. The level of fees paid to non-executive Directors is administered by the Department of Premier and Cabinet, as are additional fees paid in respect of their work on Board committees. Superannuation is paid at the appropriate rate as prescribed by superannuation guarantee legislation. No other leave, termination or retirement benefits are accrued or paid to Directors. Directors are entitled to reimbursement of reasonable expenses incurred while attending to Board business which do not require disclosure per the Guidelines for Tasmanian Government Businesses – Director and Executive Remuneration. Non-executive Directors’ remuneration is reviewed periodically with increases subject to approval by the Treasurer and Portfolio Minister.
67 TASPORTS ANNUAL REPORT 2017–2018
C2 RELATED PARTY TRANSACTIONS – DIRECTOR AND KEY MANAGEMENT PERSONNEL (CONTINUED)
(d) Senior Executive Remuneration The following tables disclose the remuneration details for each person that acted as a member of the Senior Executive during the current and previous financial year:
2018 SENIOR EXECUTIVE
SHORT TERM TOTAL OTHER NON- OTHER BASE INCENTIVE SUPER- OTHER REMUNERATION TERMINATION MONETARY LONG-TERM SALARY1 PAYMENTS2 ANNUATION3 VEHICLE4 BENEFITS5 PACKAGE BENEFITS6 BENEFITS7 BENEFITS8 TOTAL NAME POSITION PERIOD $ $ $ $ $ $ $ $
R P Weedon Chief Executive Officer Full Year 418,774 54,441 44,955 19,813 2,975 540,958 – – 31,735 572,693 A Donald Chief Operating Officer Full Year 260,002 33,150 27,849 27,811 5,057 353,869 – – (3,223) 350,646 G W Duggan Chief Financial Officer Full Year 249,806 31,850 26,757 28,169 3,594 340,176 – – 17,818 357,994 M R Johnston Executive General Manager Full Year 209,605 27,300 22,506 29,597 3,899 292,907 – – 3,980 296,887 Marine Services & Shipping S J Clark Executive General Manager From 1 November 2017 130,654 – 12,915 14,938 251 158,758 – – 688 159,446 Customer & Commercial
TOTAL 1,268,841 146,741 134,982 120,328 15,776 1,686,668 – – 50,998 1,737,666
2017 SENIOR EXECUTIVE
SHORT TERM TOTAL OTHER NON- OTHER BASE INCENTIVE SUPER- OTHER REMUNERATION TERMINATION MONETARY LONG-TERM SALARY1 PAYMENTS2 ANNUATION3 VEHICLE4 BENEFITS5 PACKAGE BENEFITS6 BENEFITS7 BENEFITS8 TOTAL NAME POSITION PERIOD $ $ $ $ $ $ $ $
R P Weedon Chief Executive Officer Full Year 418,774 59,612 45,447 17,783 4,334 545,950 – – 5,535 551,485 A Donald Chief Operating Officer Full Year 259,388 12,750 28,228 30,596 6,266 337,228 – – 6,965 344,193 G W Duggan Chief Financial Officer Full Year 244,397 20,583 27,548 27,881 4,826 325,235 – – 21,060 346,295 M R Johnston General Manager Marine From 4 July 2016 197,010 – 20,876 25,639 3,027 246,552 – – 5,031 251,583 Services & Shipping
TOTAL 1,119,569 92,945 122,099 101,899 18,453 1,454,965 – – 38,591 1,493,556
Senior Executive remuneration notes and statements
Amounts are all forms of consideration paid, payable or provided by the company. 1 Base salary includes all forms of consideration paid and payable for services rendered, compensated absences during the period and salary sacrifice amounts.
2 Short term incentive payments are non-recurrent payments which depend on achieving specified performance goals within specified timeframes. These payments are capped at 15% of base salary as per the Guidelines for Tasmanian Government Businesses – Director and Executive Remuneration. 3 Superannuation means the contribution to the superannuation fund of the individual. 4 Vehicle costs include the total cost of providing and maintaining vehicles for both business and private use, including motor vehicle allowance, fuel, parking (including notional value of parking provided at premises that are owned or leased) and fringe benefits tax. This disclosure has been adjusted in 2018 to reflect the Guidelines for Tasmanian Government Businesses – Director and Executive Remuneration. The 2017 comparatives have been revised to maintain reporting consistency as vehicle benefits outside of employee motor vehicle allowances were previously disclosed as ‘Other Benefits’. 5 Other benefits in 2018 are salary continuance and death and disability insurance premiums paid by TasPorts. The 2017 comparatives have been updated to include the insurance premiums together with other minor employment benefits. 6 Termination benefits include all forms of benefit paid as a consequence of termination. 7 Other non-monetary benefits includes all other benefits not included in Total Remuneration Package for the purposes of assessing compliance with the Guidelines for Tasmanian Government Businesses – Director and Executive Remuneration. 8 Other long-term benefits includes current and non-current annual and long service leave provision movements.
Senior Executive Remuneration Remuneration levels for key management personnel are set in accordance with the Guidelines for Tasmanian Government Businesses – Director and Executive Remuneration. Under these Guidelines, remuneration bands for Chief Executive Officers (CEOs) are determined by the Government Business Executive Remuneration Panel, reflect the principles outlined in the Guidelines, and broadly align with State Service Heads of Agency. Positioning within the bands depends on the complexity and size of the business and the environment in which the business operates. Remuneration for other Senior Executives is set with reference to the CEO’s salary. The CEO is appointed by the Board. The Board consults with the Government Business Executive Remuneration Advisory Panel when determining the CEO’s remuneration package. The employment terms and conditions of Senior Executives are contained in individual employment contracts, which prescribe total remuneration, superannuation, annual and long service leave, vehicle and salary sacrifice provisions. In addition to their salaries, the company also provides non-monetary benefits. The performance of each Senior Executive and the CEO is reviewed annually which includes a review of their remuneration package. The terms of employment of each Senior Executive and the CEO contain a termination clause that requires the Senior Executive or the Board to provide a minimum notice period of up to 3 months prior to termination of the contract. Where contracts are for a fixed term, whilst not automatic the contract can be extended. No key management personnel appointed during the period received a payment as part of his or her consideration for agreeing to hold the position.
68 C2 RELATED PARTY TRANSACTIONS – DIRECTOR AND KEY MANAGEMENT PERSONNEL (CONTINUED)
(d) Senior Executive Remuneration The following tables disclose the remuneration details for each person that acted as a member of the Senior Executive during the current and previous financial year:
2018 SENIOR EXECUTIVE
SHORT TERM TOTAL OTHER NON- OTHER BASE INCENTIVE SUPER- OTHER REMUNERATION TERMINATION MONETARY LONG-TERM SALARY1 PAYMENTS2 ANNUATION3 VEHICLE4 BENEFITS5 PACKAGE BENEFITS6 BENEFITS7 BENEFITS8 TOTAL NAME POSITION PERIOD $ $ $ $ $ $ $ $
R P Weedon Chief Executive Officer Full Year 418,774 54,441 44,955 19,813 2,975 540,958 – – 31,735 572,693 A Donald Chief Operating Officer Full Year 260,002 33,150 27,849 27,811 5,057 353,869 – – (3,223) 350,646 G W Duggan Chief Financial Officer Full Year 249,806 31,850 26,757 28,169 3,594 340,176 – – 17,818 357,994 M R Johnston Executive General Manager Full Year 209,605 27,300 22,506 29,597 3,899 292,907 – – 3,980 296,887 Marine Services & Shipping S J Clark Executive General Manager From 1 November 2017 130,654 – 12,915 14,938 251 158,758 – – 688 159,446 Customer & Commercial
TOTAL 1,268,841 146,741 134,982 120,328 15,776 1,686,668 – – 50,998 1,737,666
2017 SENIOR EXECUTIVE
SHORT TERM TOTAL OTHER NON- OTHER BASE INCENTIVE SUPER- OTHER REMUNERATION TERMINATION MONETARY LONG-TERM SALARY1 PAYMENTS2 ANNUATION3 VEHICLE4 BENEFITS5 PACKAGE BENEFITS6 BENEFITS7 BENEFITS8 TOTAL NAME POSITION PERIOD $ $ $ $ $ $ $ $
R P Weedon Chief Executive Officer Full Year 418,774 59,612 45,447 17,783 4,334 545,950 – – 5,535 551,485 A Donald Chief Operating Officer Full Year 259,388 12,750 28,228 30,596 6,266 337,228 – – 6,965 344,193 G W Duggan Chief Financial Officer Full Year 244,397 20,583 27,548 27,881 4,826 325,235 – – 21,060 346,295 M R Johnston General Manager Marine From 4 July 2016 197,010 – 20,876 25,639 3,027 246,552 – – 5,031 251,583 Services & Shipping
TOTAL 1,119,569 92,945 122,099 101,899 18,453 1,454,965 – – 38,591 1,493,556
Short term incentive payments The Board set and approve fixed performance targets for the CEO with goals and indicators aligned to the creation of value. The CEO approves incentive payments to remaining Senior Executives. Short term incentive payments paid to Senior Executives in the 2018 financial year were in relation to performance during the 2017 financial year. Goals and indicators covered whole of company financial and safety results together with divisional objectives. – Mr R Weedon was awarded an incentive payment of $54,441. The payment was provided following the start up of the King Island Shipping Service and Southern Forest Export Terminal together with safety, profitability and stakeholder and employee initiatives. – Mr A Donald was awarded an incentive payment of $33,150. The payment was provided following the achievements towards development of Port Master Plans and long term asset management strategies. – Mr G Duggan was awarded an incentive payment of $31,850. The payment was provided following the implementation of productivity initiatives and operating and capital budget governance strategies. – Mr M Johnston was awarded an incentive payment of $27,300. The payment was provided following the implementation of a fleet management strategy and introduction of new pilotage and towage vessels.
69 TASPORTS ANNUAL REPORT 2017–2018
D FINANCING, CAPITAL STRUCTURE AND RELATED PARTY TRANSACTIONS
D1 BORROWINGS
2018 2017 $ $ Current
INTEREST BEARING LIABILITIES 7,500,000 –
Non-current
INTEREST BEARING LIABILITIES 19,833,663 27,333,663
TOTAL BORROWINGS 27,333,663 27,333,663
The Economic Entity has an external loan facility of $34.5 million with a maximum borrowing term of 10 years (2017: $34.5 million) with Tascorp. As at 30 June 2018, $7.2 million of the facility was unused (2017: $7.2 million).
Recognition and measurement All loans are measured at the principal amount. Interest is charged as an expense as it accrues over the life of the related financial instrument and taken to the Statement of Profit or Loss and Other Comprehensive Income as part of finance costs.
D2 ISSUED CAPITAL AND RESERVES
ECONOMIC ENTITY
2018 2017 $ $ Issued capital Equity 112,342,385 112,342,385 Issued capital 2 2 Equity contribution post formation 23,085,000 23,085,000
135,427,387 135,427,387
Reserves Infrastructure asset revaluation reserve Opening balance 130,577,968 98,827,350 Revaluation of infrastructure assets 308,379 31,759,418 Disposal of revalued assets transferred from reserves to retained earnings/(accumulated losses) (201,628) (8,800)
CLOSING BALANCE 130,684,719 130,577,968
Value of infrastructure asset revaluation reserve by asset classification: Freehold land 17,456,319 17,639,214 Buildings 20,025,657 20,025,657 Land infrastructure 9,775,006 9,793,740 Harbour improvements 23,983,057 23,983,057 Wharves 59,444,680 59,136,300
130,684,719 130,577,968
Recognition and measurement The asset revaluation reserve was established to capture the movements in asset valuations upon the periodic revaluation of the Economic Entity’s infrastructure assets. Where infrastructure assets are disposed of and have been previously valued upwards, the revalued amount is transferred to retained earnings/(accumulated losses). Where infrastructure assets have been previously valued upwards and are impaired, the amount in reserves is to be offset against the impairment prior to impairment through the Statement of Profit or Loss and Other Comprehensive Income.
D3 ULTIMATE OWNER
The ultimate owner of the Economic Entity is The Crown in Tasmania.
70 D4 CONTROLLED ENTITIES
(a) Subsidiaries Tasmanian Ports Corporation Pty Ltd: (100% owned by the Tasmanian Government)
WHOLLY CONTROLLED ENTITIES CONSOLIDATED COUNTRY OF INCORPORATION PERCENTAGE OWNED (%)
2018 2017 Subsidiaries of Tasmanian Ports Corporation Pty Ltd: King Island Ports Corporation Pty Ltd Australia 100 100 Flinders Island Ports Company Pty Ltd Australia 100 100 Bass Island Line Pty Ltd Australia 100 100
Flinders Island Ports Company Pty Ltd is an entity which did not trade during the year. King Island Ports Corporation Pty Ltd retains ownership of infrastructure and operational assets. These assets are leased to TasPorts. Bass Island Line Pty Ltd was established in February 2017 to provide shipping services to King Island.
(b) Joint Ventures
JOINTLY CONTROLLED ENTITIES CONSOLIDATED COUNTRY OF INCORPORATION PERCENTAGE OWNED (%)
2018 2017 Joint Ventures of Tasmanian Ports Corporation Pty Ltd: Southern Export Terminals Pty Ltd Australia 50 50
Southern Export Terminals Pty Ltd is a joint venture in which TasPorts has 50% control. Qube Ports Pty Ltd has the remaining 50% control. The Joint Venture operates a forestry logistics business within the Macquarie Point wharf precinct in Hobart.
D5 RELATED PARTY TRANSACTIONS – SUBSIDIARY AND JOINT VENTURE
Transactions and obligations between related parties are on normal commercial terms and conditions no more favourable than those available to other parties unless otherwise stated. Transactions and obligations with related parties during the year ended 30 June 2018 are as follows:
(a) Subsidiaries
The business conducted by King Island Ports Corporation Pty Ltd (KIPC) was transferred into Tasmanian Ports Corporation Pty Ltd (TasPorts) effective from 1 July 2011. The ownership of property, plant and equipment purchased by KIPC prior to 30 June 2011 remains within KIPC. TasPorts leases these assets from KIPC at an amount equal to the depreciation on these assets. For 2018 the amount of rent paid was $263,049 (2017: $262,010). Bass Island Line Pty Ltd (Bass Island Line) is a fully owned subsidiary of TasPorts established in February 2017 to provide shipping services to King Island. TasPorts charges Bass Island Line for the following services at commercial rates: 2018 2017 $ $ Tonnage fees 126,863 31,544 Wharfage fees 702,561 199,729 Mooring fees 113,218 32,024 Steverdoring fees 334,236 72,699 Infrastructure levy 50,500 12,000 Administration services 50,202 6,517 Equipment hire 75,144 14,269
TOTAL 1,452,724 368,782
Comparative figures are for the period March 2017 to June 2017.
(b) Joint Venture
Southern Export Terminals Pty Ltd (SET) was established in December 2016 as a Joint Venture between TasPorts (50%) and Qube Ports Pty Ltd (50%). SET operates a forest logistics business from the Hobart wharf precinct. TasPorts charges SET for the following services at commercial rates: 2018 2017 $ $ Casual storage fees 17,604 7,714 Facility fees 157,233 70,156 Wharfage fees 93,266 29,999 Rental income 15,000 7,500 Administration and expense recoveries 207,822 93,300
TOTAL 490,925 208,669
Comparative figures are for the period January 2017 to June 2017.
71 TASPORTS ANNUAL REPORT 2017–2018
D6 PARENT ENTITY INFORMATION – TASMANIAN PORTS CORPORATION PTY LTD
The accounting policies of the Company, which have been applied in determining the financial information shown below, are the same as those applied in the financial statements of the Economic Entity.
FINANCIAL POSITION
2018 2017 $ $ Current assets 39,813,055 52,708,102 Non-current assets 270,037,378 255,243,828
TOTAL ASSETS 309,850,433 307,951,930
Current liabilities 27,260,023 16,866,119 Non-current liabilities 47,265,677 57,309,941
TOTAL LIABILITIES 74,525,700 74,176,060
NET ASSETS 235,324,733 233,775,870
Issued capital 135,427,387 135,427,387 Asset revaluation reserve 127,153,958 126,845,579 Retained earnings (27,256,612) (28,497,096)
TOTAL SHAREHOLDER’S EQUITY 235,324,733 233,775,870
FINANCIAL PERFORMANCE
Total revenue 116,218,056 102,772,536 Operating expenses (102,330,309) (95,806,489)
Trading profit/(loss) before tax 13,887,747 6,966,047 Income tax expense (4,924,579) (3,024,775)
Trading profit/(loss) after tax 8,963,168 3,941,272 Less impairment of controlled entities (4,907,553) – Asset revaluation adjustments – 890,916
PROFIT/(LOSS) AFTER TAX 4,055,615 4,832,188
OTHER COMPREHENSIVE INCOME
ITEMS THAT WILL NOT BE CLASSIFIED TO PROFIT OR LOSS
Increase/(decrease) on asset revaluation surplus – 42,695,198 Income tax (expense)/benefit on revaluation 308,379 (11,896,581)
OTHER COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR, NET OF TAX 308,379 30,798,617
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR 4,363,994 35,630,805
Income tax expense The income tax expense of $4,924,579 includes $467,068 as a result of the economic entity forming a tax consolidated group during the financial year. Adjusting for the tax consolidation impact, the trading profit after income tax was $9,430,236.
72 D7 SUBSIDIARY INFORMATION – BASS ISLAND LINE PTY LTD
The accounting policies of the Subsidiary, which have been applied in determining the financial information shown below, are the same as those applied in the Economic Entity. Bass Island Line Pty Ltd was incorporated on 16 February 2017.
Financial Support TasPorts as the Parent Entity has undertaken to provide financial support to the Subsidiary.
FINANCIAL POSITION
2018 2017 $ $ Current assets 3,322,951 1,864,107 Non-current assets 11,941,059 30,711
TOTAL ASSETS 15,264,010 1,894,818
Current liabilities 8,831,299 3,577,645 Non-current liabilities 51,192 21,338
TOTAL LIABILITIES 8,882,491 3,598,983
NET ASSETS/(LIABILITIES) 6,381,519 (1,704,165)
Issued capital 11,116,807 100 Retained earnings/(losses) (4,735,288) (1,704,265)
TOTAL SHAREHOLDER’S EQUITY 6,381,519 (1,704,165)
FINANCIAL PERFORMANCE
Total revenue 8,200,300 2,156,663 Total expenses (13,260,732) (3,860,928)
Profit/(loss) before tax (5,060,432) (1,704,265) Tax (expense)/benefit 2,029,409 –
PROFIT/(LOSS) AFTER TAX (3,031,023) (1,704,265)
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR (3,031,023) (1,704,265)
D8 INTEREST IN EQUITY ACCOUNTED INVESTEES – SOUTHERN EXPORT TERMINALS PTY LTD
Southern Export Terminals Pty Ltd (SET) is a Joint Venture in which TasPorts has joint control. The accounting policies of the Joint Venture, which have been applied in determining the financial information shown below, are the same as those applied in the Economic Entity. The Joint Venture was incorporated on 9 December 2016.
Financial Support TasPorts as one of the controlling entities has undertaken to provide financial support to the Joint Venture.
2018 2017 $ $
Percentage ownership interest 50% 50% Current assets 582,573 362,493 Current liabilities 927,103 472,339
NET ASSETS/(LIABILITIES) (344,529) (109,846)
TASPORTS’ SHARE OF NET ASSETS/(LIABILITIES) (50%) (172,265) (54,923)
Revenue 1,350,404 407,941 Expenses (1,585,087) (517,789)
Net profit/(loss) before tax (234,684) (109,848) Income tax (expense)/benefit – –
NET PROFIT/(LOSS) AFTER TAX (234,684) (109,848)
TASPORTS’ SHARE OF TOTAL COMPREHENSIVE PROFIT/(LOSS) (50%) (117,342) (54,924)
73 TASPORTS ANNUAL REPORT 2017–2018
D9 FINANCIAL INSTRUMENTS
(a) Liquidity risk management The risk that the Economic Entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk is managed through the maintenance of rolling 12 month cash flow budgets and maintaining minimum cash reserves at a level sufficient to satisfy short term financial liabilities and commitments.
MATURING MATURING MATURING GREATER THAN ECONOMIC ENTITY: WITHIN 1 YEAR 1 TO 5 YEARS 5 YEARS TOTAL
2018 2018 2018 2018 Financial liabilities: Borrowings 7,500,000 19,833,663 – 27,333,663 Payables 7,219,670 – – 7,219,670
14,719,670 19,833,663 – 34,553,333
2017 2017 2017 2017 Financial liabilities: Borrowings – 22,833,663 4,500,000 27,333,663 Payables 7,495,231 – – 7,495,231
7,495,231 22,833,663 4,500,000 34,828,894
(b) Market risk management Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The primary market risk is exposure to interest rate risk. The major exposure for the Economic Entity is its borrowings, all of which are all borrowed at fixed rates. This mitigates the Economic Entity’s exposure to price risk. Variable interest rate investments expose the Economic Entity to fluctuations in return and cash flow. The net fair value of long-term borrowings is determined by valuing them at their carrying amount as the carrying amount approximate fair value. All long term borrowings are borrowed at fixed interest rates. The net fair value of cash, investments, trade receivables and trade and other payables are determined by valuing them at their carrying amounts. Due to their short-term maturity, their carrying amounts approximate their fair values. The market interest rates used to discount estimated cash flows for borrowings are based on the Tasmanian Public Finance Corporation yield curve at the reporting date. Changes in variable and fixed interest rates of one per cent (100 basis points) would have the following effect on the Economic Entity’s profit or loss and equity at reporting date if the financial instruments were to be re-financed.
SENSITIVITY ANALYSIS ECONOMIC ENTITY: INTEREST RATE RISK -1% +1%
CARRYING AMOUNT FAIR VALUE IMPACT ON PROFIT IMPACT ON EQUITY IMPACT ON PROFIT IMPACT ON EQUITY
2018 2018 2018 2018 2018 2018 $ $ $ $ $ $ Financial assets: Cash and cash equivalents 22,990,257 22,990,257 (229,903) (229,903) 229,903 229,903 Trade receivables 11,910,801 11,910,801 – – – – Net Investment in Joint Venture 27,734 27,734 – – – –
34,928,792 34,928,792 (229,903) (229,903) 229,903 229,903
Financial liabilities: Borrowings 27,333,663 28,948,885 (657,191) (657,191) 634,670 634,670 Trade payables 7,219,670 7,219,670 – – – –
34,553,333 36,168,555 (657,191) (657,191) 634,670 634,670
2017 2017 2017 2017 2017 2017 $ $ $ $ $ $ Financial assets: Cash and cash equivalents 39,302,644 39,302,644 (393,026) (393,026) 393,026 393,026 Trade receivables 9,884,562 9,884,562 – – – – Investment in Joint Venture 199,999 199,999 – – – –
49,387,205 49,387,205 (393,026) (393,026) 393,026 393,026
Financial liabilities: Borrowings 27,333,663 29,444,272 (926,995) (926,995) 888,809 888,809 Trade payables 7,495,231 7,495,231 – – – –
34,828,894 36,939,503 (926,995) (926,995) 888,809 888,809
74 D9 FINANCIAL INSTRUMENTS
(a) Liquidity risk management The risk that the Economic Entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk is managed through the maintenance of rolling 12 month cash flow budgets and maintaining minimum cash reserves at a level sufficient to satisfy short term financial liabilities and commitments.
MATURING MATURING MATURING GREATER THAN ECONOMIC ENTITY: WITHIN 1 YEAR 1 TO 5 YEARS 5 YEARS TOTAL
2018 2018 2018 2018 Financial liabilities: Borrowings 7,500,000 19,833,663 – 27,333,663 Payables 7,219,670 – – 7,219,670
14,719,670 19,833,663 – 34,553,333
2017 2017 2017 2017 Financial liabilities: Borrowings – 22,833,663 4,500,000 27,333,663 Payables 7,495,231 – – 7,495,231
7,495,231 22,833,663 4,500,000 34,828,894
(b) Market risk management Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The primary market risk is exposure to interest rate risk. The major exposure for the Economic Entity is its borrowings, all of which are all borrowed at fixed rates. This mitigates the Economic Entity’s exposure to price risk. Variable interest rate investments expose the Economic Entity to fluctuations in return and cash flow. The net fair value of long-term borrowings is determined by valuing them at their carrying amount as the carrying amount approximate fair value. All long term borrowings are borrowed at fixed interest rates. The net fair value of cash, investments, trade receivables and trade and other payables are determined by valuing them at their carrying amounts. Due to their short-term maturity, their carrying amounts approximate their fair values. The market interest rates used to discount estimated cash flows for borrowings are based on the Tasmanian Public Finance Corporation yield curve at the reporting date. Changes in variable and fixed interest rates of one per cent (100 basis points) would have the following effect on the Economic Entity’s profit or loss and equity at reporting date if the financial instruments were to be re-financed.
SENSITIVITY ANALYSIS ECONOMIC ENTITY: INTEREST RATE RISK -1% +1%
CARRYING AMOUNT FAIR VALUE IMPACT ON PROFIT IMPACT ON EQUITY IMPACT ON PROFIT IMPACT ON EQUITY
2018 2018 2018 2018 2018 2018 $ $ $ $ $ $ Financial assets: Cash and cash equivalents 22,990,257 22,990,257 (229,903) (229,903) 229,903 229,903 Trade receivables 11,910,801 11,910,801 – – – – Net Investment in Joint Venture 27,734 27,734 – – – –
34,928,792 34,928,792 (229,903) (229,903) 229,903 229,903
Financial liabilities: Borrowings 27,333,663 28,948,885 (657,191) (657,191) 634,670 634,670 Trade payables 7,219,670 7,219,670 – – – –
34,553,333 36,168,555 (657,191) (657,191) 634,670 634,670
2017 2017 2017 2017 2017 2017 $ $ $ $ $ $ Financial assets: Cash and cash equivalents 39,302,644 39,302,644 (393,026) (393,026) 393,026 393,026 Trade receivables 9,884,562 9,884,562 – – – – Investment in Joint Venture 199,999 199,999 – – – –
49,387,205 49,387,205 (393,026) (393,026) 393,026 393,026
Financial liabilities: Borrowings 27,333,663 29,444,272 (926,995) (926,995) 888,809 888,809 Trade payables 7,495,231 7,495,231 – – – –
34,828,894 36,939,503 (926,995) (926,995) 888,809 888,809
75 TASPORTS ANNUAL REPORT 2017–2018
D9 FINANCIAL INSTRUMENTS (CONTINUED)
(c) Foreign currency risk management The Economic entity does not hold a balance in any foreign currency bank accounts or have any amounts payable or receivable in foreign currencies at balance date.
(d) Credit risk management
The Economic Entity does not have any significant credit risk exposure to any single counterparty. The Economic Entity does not expect any counterparty to fail to meet its obligations. There is no collateral regarding financial assets, in respect of existing arrangements. The carrying amount of the financial assets recorded in the financial statements, net of any provisions for impairment, represents the maximum exposure to credit risk. Investments are held either with an Australian bank or Tascorp. The following tables analyse financial assets that are past due but not impaired:
ECONOMIC ENTITY:
PAST DUE PAST DUE PAST DUE PAST DUE 15 TO 44 45 TO 60 61 TO 90 91 DAYS DAYS DAYS DAYS AND OVER TOTAL
2018 2018 2018 2018 2018 $ $ $ $ $
TRADE RECEIVABLES 3,578,243 854,910 143,493 250,129 4,826,775
2017 2017 2017 2017 2017 $ $ $ $ $
TRADE RECEIVABLES 1,653,302 21,556 5,917 32,638 1,713,413
(e) Categories of financial instruments
ECONOMIC ENTITY:
2018 2017
FAIR VALUE HIERARCHY CARRYING CARRYING LEVEL AMOUNT FAIR VALUE AMOUNT FAIR VALUE $ $ $ $ Financial Assets Cash and cash equivalents 2 22,990,257 22,990,257 39,302,644 39,302,644 Trade receivables 2 11,910,801 11,910,801 9,884,562 9,884,562
34,901,058 34,901,058 49,187,206 49,187,206
Financial Liabilities Borrowings – Tascorp 2 27,333,663 28,948,885 27,333,663 29,444,272 Trade payables 2 7,219,670 7,219,670 7,495,231 7,495,231
34,553,333 36,168,555 34,828,894 36,939,503
Borrowings are measured at amortised cost with interest recognised in profit or loss when incurred. The fair value of Tascorp borrowings (level 2) is provided by Tascorp. The carrying amount of trade receivables and trade payables are assumed to approximate their fair values due to their short-term nature (level 2).
(f) Capital risk management
The Economic Entity’s objective is to have an appropriate capital structure that ensures financial flexibility and fiscal discipline and therefore ongoing viability to continue to provide returns for shareholders. The Economic Entity monitors key financial ratios to ensure an appropriate capital structure is maintained. The debt to equity ratios are as follows:
ECONOMIC ENTITY
2018 2017 $ $ Debt 27,333,663 27,333,663 Equity 243,705,043 240,418,174
TOTAL DEBT TO EQUITY RATIO 11.2% 11.4%
(i) Debt is defined as long and short term borrowings (ii) Equity includes all capital and reserves
76 E ADDITIONAL INFORMATION
E1 CAPITAL AND LEASING COMMITMENTS
ECONOMIC ENTITY
2018 2017 $ $ (a) Operating lease commitments-lessee Non-cancellable operating leases contracted for but not capitalised in the financial statements Payable — minimum lease payments Less than one year Office accommodation 493,744 378,073 Land 52,765 41,096 Other 69,395 716,262
TOTAL 615,904 1,135,431
Between one and five years Office accommodation 2,286,718 923,606 Land 178,833 153,334 Other 247,428 171,659
TOTAL 2,712,979 1,248,599
More than five years Office accommodation 1,863,734 690,950 Land 406,866 583,526 Other 204,976 88,909
TOTAL 2,475,576 1,363,385
TOTAL OPERATING LEASE COMMITMENTS-LESSEE 5,804,459 3,747,415
(b) Operating lease commitments-lessor Non-cancellable operating leases for infrastructure, land, wharves, buildings and equipment contracted for, but not capitalised in the financial statements. Receivable — minimum lease receipts Less than one year 7,619,630 8,034,220 More than five years 65,363,663 77,245,304
99,551,502 112,279,244
(c) Capital expenditure commitments Capital expenditure commitments contracted for: Plant and equipment – 5,582,761 Capital expenditure projects 290,610 –
290,610 5,582,761
Payable Within one year 290,610 5,582,761
290,610 5,582,761
The 2018 commitment of capital expenditure projects relate to infrastructure upgrades. The 2017 commitments for plant and equipment expenditure were carried out in the 2018 financial year.
E2 AUDITORS’ REMUNERATION
ECONOMIC ENTITY
2018 2017 $ $ Auditors’ remuneration Auditing of the financial statements 106,510 102,410 Internal audit 35,000 52,090
141,510 154,500
77 TASPORTS ANNUAL REPORT 2017–2018
E3 CONTINGENT LIABILITIES
No contingent liabilities are noted.
E4 OTHER ACCOUNTING POLICIES
(a) New and amended Australian Accounting Standards There have been no new or revised standards and interpretations issued by the Australian Accounting Standards Board that are relevant or have had a material impact on operations for the 2018 annual reporting period. The Economic Entity has applied AASB Interpretation 1052 Tax Consolidation Accounting for the first time in 2018. In addition the Economic Entity has componentised new build floating plant for the first time in 2018 as referenced in AASB 116 ‘Property, Plant and Equipment’. The Economic Entity has elected not to adopt the following new or amended Accounting Standards in advance of their operative date. A full assessment of the impact of these future standards is being performed.
APPLIES TO ANNUAL REPORTING PERIODS AASB AFFECTED NATURE OF CHANGE ISSUE BEGINNING AMENDMENT STANDARD TO ACCOUNTING POLICY DATE ON OR AFTER
AASB 15 Revenue from The core principle is that an entity recognises revenue to depict October-2015 January-2018 Contracts with the transfer of promised goods or services to customers in an Customers amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This is standard practice for the Economic Entity. There is an increased disclosure requirement, however, the impact to the financial statements is considered to be immaterial.
AASB 16 Leases The new standard abolishes the concept of the operating lease for January-2016 January-2019 lessees and effectively treats all leases as finance leases. The result is that all leases will be recognised as liabilities on the balance sheet, rather than as commitments in the notes to the financial statements. The only exemption to this requirement is for short term leases of durations of 12 months or less, and for leases of low- value assets, such as office furniture or computers. The standard largely retains the existing accounting requirements for lessors whereby leases are classified as operating leases or finance leases. The changes will result in the obligation to make lease payments listed on the balance sheet as a liability (amortised on a discount basis) and asset representing the right to use the asset (amortised on a straight line basis). There are also exemptions to the standard i.e. low value or short-term leases. TasPorts estimates the value of leases to be capitalised in the financial year commencing 1 July 2019 to be $5.8 million.
AASB 9 Financial Replaces AASB 139 – Financial Instruments: Recognition and July-2015 January-2018 Instruments Measurement Receivables will be tested for impairment. Measurement of impairment changes to an expected credit loss approach over the future. The Provision for doubtful will most likely increase, however expected impact is considered immaterial.
E5 COMPANY DETAILS
The registered office of the Company is: 48 Formby Road Devonport Tasmania 7310
78 INDEPENDENT AUDITOR’S REPORT
For the year ended 30 June 2018
Independent Auditor’s Report
To the Members of Tasmanian Ports Corporation Pty Ltd
Report on the Audit of the Consolidated Financial Report
Opinion
I have audited the financial report of the Tasmanian Ports Corporation Pty Ltd (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2018, the consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, notes to the financial statements, including a summary of significant accounting policies and the directors’ declaration.
In my opinion, the accompanying financial report of the Group is in accordance the Corporations Act 2001, including: (a) giving a true and fair view of the Group’s financial position as at 30 June 2018 and of its financial performance for the year then ended (b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
I conducted the audit in accordance with Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report. I am independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code.
The Audit Act 2008 further promotes the independence of the Auditor-General. The Auditor- General is the auditor of all Tasmanian public sector entities and can only be removed by Parliament. The Auditor-General may conduct an audit in any way considered appropriate and is not subject to direction by any person about the way in which audit powers are to be exercised. The Auditor-General has for the purposes of conducting an audit, access to all documents and property and can report to Parliament matters which in the Auditor-General’s opinion are significant.
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I confirm that the independence declaration required by the Corporations Act 2001, provided to the directors of the Group on 8 August 2018 and included in the Directors’ Report, would be in the same terms if provided to the directors at the time of this auditor’s report.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Key Audit Matters
Key audit matters are those matters that, in my professional judgement, were of most significance in my audit of the financial report of the current period. These matters were addressed in the context of my audit of the financial report as a whole, and in forming my opinion thereon, and I do not provide a separate opinion on these matters.
Why this matter is considered to be one of the Audit procedures to address the matter most significant matters in the audit included Property, plant and equipment Refer to note B4 TasPorts’ asset portfolio amounted to Evaluating the reasonableness of the $269.76m and accounted for over 80% of total valuation when compared to the prior year assets. Challenging management’s assessment of Infrastructure, land and buildings are measured useful lives at fair value which involves significant Performing detailed analytical review over judgement and estimation. the depreciation calculation for each class of Many assets are of a specialised nature and the asset most recent valuation occurred in 2017. Evaluating management’s assessment of Infrastructure assets were assessed for impairment impairment which involves a complex model with a degree of subjectivity to ensure assets Testing capital work-in-progress to ensure were not carried in excess of their fair value. that active projects will result in usable assets and that assets commissioned are Work-In-Progress for capital and infrastructure transferred out in a timely manner projects at 30 June 2018 amounted to $6.27m. The classification of work – in – progress as an Undertaking procedures to ensure that asset as opposed to expenditure involves maintenance and capital expenditure were subjectivity. appropriately accounted for and disclosed in the financial report.
Other Information
The directors are responsible for the other information. The other information comprises the information included in the Company’s Directors’ Report for the year ended 30 June 2018, but does not include the financial report and my auditor’s report thereon.
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My opinion on the financial report does not cover the other information and accordingly I do not express any form of assurance conclusion thereon.
In connection with my audit of the financial report, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or my knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards, and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible 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.
Auditor’s Responsibilities for the Audit of the Financial Report
My objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian 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 users taken on the basis of this financial report.
As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also: • Identify and assess the risks of material misstatement of the financial report, 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 my 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.
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• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. • Conclude on the appropriateness of the directors’ use of the going concern basis of accounting 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 I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusion is based on the audit evidence obtained up to the date of my 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 financial report, including the disclosures, and whether the financial report represents 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 financial report. I am responsible for the direction, supervision and performance of the Group audit. I remain solely responsible for my audit opinion.
I 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 I identify during my audit.
I also provide the directors with a statement that I 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 my independence, and where applicable, related safeguards.
From the matters communicated with the directors, I determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. I describe these matters in my auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, I determine that a matter should not be communicated in my report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Ric De Santi Deputy Auditor-General Delegate of the Auditor-General
Tasmanian Audit Office
10 August 2018 Hobart
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Tasmanian Ports Corporation Pty Ltd ABN 82 114 161 938 Phone 1300 366 742 www.TasPorts.com.au
REGISTERED OFFICE 48 Formby Road, Devonport PO Box 478 Devonport, Tasmania 7310
LAUNCESTON OFFICE HOBART OFFICE BURNIE OFFICE Suite 12, Level 1 Level 13, Trafalgar Building Port Road, Burnie 87 Brisbane Street, Launceston 110 Collins Street, Hobart PO Box 216 PO Box 1060 GPO Box 202 Burnie, Tasmania 7320 Launceston, Tasmania 7250 Hobart, Tasmania 7001
BELL BAY OFFICE KING ISLAND OFFICE FLINDERS ISLAND OFFICE Mobil Road 285 Grassy Harbour Road Lady Barron Bell Bay Grassy, King Island Flinders Island, Tasmania 7255 PO Box 221 PO Box 341 George Town, Tasmania 7253 Currie, King Island, Tasmania 7256