ANNUAL REPORT 2001

Leading through INNOVATION & COMMITMENT When a company gives an undertaking to its stakeholders, it also creates a challenge to deliver. The Port of Tauranga says in its mission statement that it will show leadership through innovation and commitment. These words are a promise that the Port will have the courage to consistently review its operations, search for new and better ways of performing, and deliver services that will be valued. The statement is also a call to action. In a business that is dedicated to being New Zealand’s preferred cargo gateway, respect will be earned by the quality of every Port team member’s effort. The record result achieved in 2001 is evidence that the Port of Tauranga can keep its word.

contents

Foreword 1 Results in Brief 2 Highlights 3 Environment Report 6

OUR VISION Our Community 10

To be New Zealand’s Directors 14 preferred cargo gateway Management 15 OUR MISSION STATEMENT Chairman’s Review 16 Leading through innovation and commitment Corporate Governance Statement 18 OUR VALUES Chief Executive’s Review 19

Integrity Report of the Directors to the Shareholders 22 Innovation

Communication Auditors’ Report 24 Teamwork Financial Statements 25

Some men see things as they are and say “Why?” FOR US SOCIAL Five Year Summary 42 I dream of things that never were and say “Why not?” RESPONSIBILITY IS: -George Bernard Shaw Security Holding Statistics 43

Ensuring our strategic and operational decisions take into account our Directory 45 environmental responsibilities and the aspirations of all stakeholders, including the shareholders, the community and our staff.

ANNUAL REPORT 2001 1 results in brief 2001 2000 Year Year $000 $000

Revenue 76,686 69,866

Net profit after tax 22,412 19,650

Total assets 362,101 354,888

Total equity 273,808 258,157

Shareholders’ equity (%) 75.6 72.7 > A record net profit after tax of $22.4 million, up 14% on the previous year. Earnings per share (cents) 29.3 25.7 highlights > Container traffic up 22% to 286,806 TEUs (twenty Dividends per share foot equivalent units). - Ordinary (cents) 24.0 22.0 - Special (cents) - 16.0 > Confirmation of an agreement with Tranz Rail to extend METROPORT Auckland to a seven days a Net asset backing per share ($) 3.58 3.38 week, 24 hour operation.

Return on equity (%) 8.4 7.5 > Construction starts on deepwater port facility at Marsden Point, a joint venture project with Cargo throughput (000 tonnes) 10,248 9,737 Northland Port Corporation.

Containers (TEU’s) 286,806 235,905 > Wallenius Wilhelmsen begins a new monthly service linking the Port of Tauranga to Europe, America, Australia and Asia.

> FESCO New Zealand Express Line shifts its port of call from Auckland to Tauranga for its fixed day weekly service to the Far East - and becomes a new customer for METROPORT Auckland.

$5.50 > The vessel sharing agreement between ANZDL, $6.80 $18.1M Columbus Line, FESCO, and P&O Nedlloyd elects to 38.0c $19.6M $22.4M 25.7c $5.00

20.3c use the Port of Tauranga for the Pacific South West 29.3c 38.0c string of its twice-weekly connection between New Zealand, Australia, and the West Coast of North America.

24.0c > The new $5 million state of the art tug, the VALUE 1999 1999 1999 1999 Sir Robert, is blessed in November 2000 at a

2000 2000 2000 2000 special dawn ceremony.

2001 2001 2001 2001 > The Port of Tauranga and the Port of Brisbane establish a strategic alliance, paving the way for share price dividends earnings surplus the sharing of technologies, marketing, trade $6.80 per share per share after taxation information and specialised expertise. 24.0c 29.3c $22.4M > The Port adds another 200 reefer points to cater for continued growth in container throughput at its Sulphur Point Container Terminal.

2 ANNUAL REPORT 2001 ANNUAL REPORT 2001 3 “First impressions are lasting impressions “Sometimes my job is and our team aims to just about being provide the most helpful - it’s about accurate and efficient pointing a customer in information to ensure the right direction” customer satisfaction”

Kel Jones > Cargo Services Karina Tabak > Customer Services Co-ordinator “It’s my job to manage storage space and ensuring shippers’releases, everyone happy. Sometimes my job is just about being helpful - it’s “The Service Centre is the first port of call for everyone. It’s the hub the information you have provided them and that’s the best part Customs and MAF clearances on all cargo are approved on time.” about pointing a customer in the right direction to make sure they of communication for all vessels arriving or leaving the Port and of the job - to know you have been instrumental in making their Cargo Services’ Kelvin Jones manages the Mount Maunganui and have the correct documentation.” the people involved in our industry.” day work better.” Sulphur Point wharf storage facilities where he is responsible for Kelvin says the most important attribute for his job is flexibility: Karina Tabak is one of a team of eight that work around the clock Karina has built good relationships with many Port customers. allocating adequate space and conditions for all cargo excluding “Things are subject to rapid change when you work at the Port. providing information and assistance to customers as well as being “First impressions are lasting impressions and our team aims to kiwifruit. The most important thing is to be honest with yourself, keep in constant contact with the vessels entering or leaving the harbour. provide the most accurate and efficient information to ensure “My role lets me work with a range of people including everyone informed and accommodate changes the best you can.” “I love the contact with people, and assisting in the efficient customer satisfaction, and that all vessels travel safely within our marshallers, agents, stevedores and customers and I aim to keep operation of the Port.You know when a customer is satisfied with harbour.”

4 ANNUAL REPORT 2001 ANNUAL REPORT 2001 5 environment report

The Port is located within a majestic natural setting.Tauranga harbour and its local beaches are highly valued natural A port operation of the size and scale of the Port of During the period under review, several issues arose habitats and recreational playgrounds, Tauranga cannot operate in isolation from its which merit specific mention. surrounding communities.The day-to-day work at its and have strong cultural significance. Last year, the Port was granted 20-year dredging container terminal at Sulphur Point, and its Mount consents, with some conditions.This was significant in Maunganui wharves make it probably the most highly that it provides future certainty regarding the Port’s visible business activity in the Bay of Plenty. ability to maintain shipping channels for access to The Port is located within a majestic natural setting. Mount Maunganui and Sulphur Point facilities. Tauranga harbour and its local beaches are highly Noise control boundaries have been established around valued natural habitats and recreational playgrounds, the Port area which specify a long-term average noise and have strong cultural significance. level for port activities. At the same time, the Port is In 2001, as part of its commitment to promoting social required to have a Noise Management Plan to responsibility and environmental sustainability, the Port demonstrate how port noise will be managed to meet developed a formal environmental policy: the limits. The Port of Tauranga will: A Port Noise Liaison Committee has been established to: > Seek continual improvement and social outcomes > Review the effectiveness of noise mitigation by ensuring that these are considered as part of measures; the day to day management of all business units; > Identify any new noise issues and consider > Seek to minimise the use of resources by preventative/mitigation measures; implementation of new technologies, processes > Determine a noise monitoring plan and implement and practices; with Tauranga District Council; > Identify and take into account community > Review any noise complaints received and consider aspirations and needs; preventative/mitigation measures. > Comply with all relevant environmental The Committee is required to meet every six months, but legislation; currently is meeting every three months. > Establish procedures for setting, reviewing and The Port applied for long term stormwater discharge achieving objectives; and consents in October 1998.The new consents will replace > Communicate policy and procedures, as required existing use rights. Over the past six years, the Port has and appropriate, to all stakeholders including sealed over 8.6 hectares of the log storage area to employees, other port users, government, iwi and improve the quality of stormwater run-off. other community interest groups. The Port of Tauranga is this year planning to upgrade its This policy statement is a starting point - an articulation on-wharf incinerator which is used for the disposal of of principles against which the Port will in time come to quarantined waste. Consent applications are pending. RESPECTmeasure its performance. 6 ANNUAL REPORT 2001 ANNUAL REPORT 2001 7 Mark Widmer > Electrical Foreman “I like the opportunity to continually improve myself. It’s important you need to have the right skills for your own confidence and the not to become complacent but to continue to climb - to aim for respect of your peers.” that up and coming job.” Mark has completed an Advanced Trade Certificate in Electronics, Electrical Foreman Mark Widmer has enjoyed the opportunities motivational training and is currently working towards a National provided by the Port of Tauranga to increase his skill level over the Certificate in Management. past nine years. “I’m dealing with power but it’s people that are the real thing.The “As an electrician at the Port I work with mast lighting, navigational motivational training was the hardest but the most rewarding. beacons, commercial building maintenance and the hundreds of I know I got a better understanding of how to interact with those power points providing electricity to maintain customers around me. It’s important to respect the range of characters we have containerised products at the correct temperatures.When you at the Port and acknowledge the skills our people have to offer.” work with giant machinery like cranes, it’s a whole new level and

“When you work with giant machinery like cranes you need to have the right skills for your own confidence and the respect of your peers” “Work for me is about having the best of both worlds”

Laura Watkin > Straddle Carrier Driver “Work for me is about having the best of both worlds,” says Laura Laura began work at Sulphur Point two years ago as a casual driver Watkin, the only woman among 60 straddle carrier drivers at the for The Cargo Company Limited. She now works with the on-line Port of Tauranga. Express system to track all cargo and ensure it is sent to the right Laura worked for an on-wharf contractor before taking up a full-time destination. position with the Port’s receivals and delivery team earlier this year. “The great thing is I now have regular and reliable work with the “My love of big powerful machines, the outdoors and an Port but they continue to let me drive straddles part time. It’s great instinctive drive to prove I can do anything makes work the ideal to have the best of both worlds - to be working hard and fulfil my challenge, and one that gives me a lot of satisfaction.” passion at the same time - knowing I can do anything!”

8 ANNUAL REPORT 2001 ANNUAL REPORT 2001 9 our community

Beyond the Port’s formal relationship with the community as an employer, it also has a wider relationship as an active and responsible corporate citizen.

It is all too easy to assume, when observing the daily Beyond the Port’s formal relationship with the community activity at the Port of Tauranga, that this is a business as an employer, it also has a wider relationship as an dominated by technology. Straddle carriers, cranes, and active and responsible corporate citizen. vessels are, after all, what one equates with a busy port This is most visibly expressed in the Port’s commitment operation. of more than $120,000 in community sponsorships. Yet without the knowledge and skills of the people working for and with the Port, and the support of the MAJOR SPONSORSHIPS INCLUDE: local community, the Port would not be the successful > The Port of Tauranga Half Iron Man business that it is today. > The Charity Yacht Regatta When the Port does well, so do the people working for it > Turirangi Te Kani Memorial Scholarships for - either as staff or service providers. tertiary-level Maori scholars from local iwi

It is noteworthy that in the year under review, staff > Tauranga and Waikato Chambers of Commerce turnover was less than 1.5%. And, as would be expected > Bay of Plenty and Waikato Export Institutes during a period of growth, seven new people joined the > The Department of Conservation’s dotterel Port team.There were no redundancies. protection project The make-up of the Port team is gradually changing. > The Tauranga Arts Festival Traditionally a male dominated industry, in 1995 women > Waikato University accounted for 10.2% of staff. By 30 June 2001, women > Women’s Refuge. represented 17.3%. These sponsorships span the business, sports, education, There were six work accidents, which accounted for the welfare, arts and iwi needs and concerns of the community equivalent of 41 lost time days.

in which the Port operates and to which it belongs. The Port’s efforts to improve its safety performance were recently recognised when its health and safety systems gained formal accreditation, after being audited by the

Accident Compensation Corporation.This achievement is an important measure of the priority given to staff welfare. It also has implications for the Port’s overall financial performance. Accreditation means the Port is entitled to a discount from the standard ACC employer levy. PARTNERSHIPS

10 ANNUAL REPORT 2001 ANNUAL REPORT 2001 11 Vaughan Lewis > Container Crane Supervisor “The Port of Tauranga’s crane drivers are the best in the country. “The added challenge of dealing with unusual cargo makes for an Our speed and efficiency as part of a well-oiled machine makes us interesting day. Everything from horses to super yachts go through the best.” the Port and we pride ourselves in catering for the requirements of As one of four full-time workers in a team of more than 20 crane varying types of cargo.” drivers,Vaughan says there is a feeling of confidence in the team Vaughan has spent more than 16 years working at the Port and and the work they do. says the best part is the mutual respect that everyone has for each “There is never a quiet moment. Once that ship is made fast to the other. wharf nothing stops until the ship is emptied and loaded again. “Knowing you are working for the best port in the country means We work in a continuous cycle. you have an added respect for the guys working alongside you.”

“Knowing you are working for the best port in the country means you have an added respect for the guys working alongside you” “The Port and its environment is also our home and we work to maintain it’s great condition”

John Howell > Property Serviceman “The day-to-day variety that comes with my job means I am done properly and then move on to the next task as quickly as continually gaining more knowledge and experience,” says the possible.” Port of Tauranga’s Property Serviceman John Howell. John also has the added responsibility of being part of a disaster John’s work ranges from maintenance and driving massive piles recovery team and one of the first people the Port would call on in into the wharf structure to surveying and working as a relief pilot the instance of an oil spill. launch skipper. “The Port has put me through training along with other staff and I “I work behind the scenes to ensure everything is in good working feel confident we could handle a disaster of any magnitude.The order - my workmates rely on me for their own safety and the Port and its environment is also our home and we work to efficiency of the Port’s operations.The challenge is to get the job maintain it’s great condition.”

12 ANNUAL REPORT 2001 ANNUAL REPORT 2001 13 from left to right: Jon Mayson > Chief Executive Terry James directors > Corporate Services Manager Graeme Marshall > Commercial Manager Sean Bolt > Manager Container Terminal Tony Reynish management > Property Manager Colin Boocock > Chief Financial Officer

1

23

4 5

6 7

1. F G McKenzie, MNZM, Dip Ag 5. H R L Morrison, LLB (Hons) Chairman > Lloyd Morrison is a Director of Utilico International > A Rotorua dairy farmer, Fraser McKenzie is widely Limited, H R L Morrison & Co Group Limited, Morrison recognised for his agricultural achievements, & Co Infrastructure Management Limited and including his Chairmanship of the Livestock Wellington International Airport Limited and joined Improvement Corporation for many years. Mr the Board in May 1999. McKenzie is a Director of Northport Limited. 6. J S Parker, B Ag Sc 2. A W Capamagian, CA > John Parker is a Director of Dairy Meats (NZ) Limited, > A well known Tauranga businessman and accountant, Northport Limited, Mainland Products Limited and Bill Capamagian has had a long involvement with the Ruapehu Alpine Lifts Limited. He joined the Board of Owens Group of companies, including his current Port of Tauranga Limited in June 1996. Directorship of Owens Services B.O.P.Limited. 7. H M Titter, CMG, B Com, FACA 3. E A Craig, FACA > A former Managing Director of Feltex New Zealand > Ernie Craig is Chairman of Custodial Services Limited Limited and Secretary of Defence, Harold Titter is and Deputy Chairman of Quayside Holdings Limited, Chairman of Trust Power Limited, and a Director of and Quayside Securities Limited, and joined the Board Northport Limited, Uniservices Limited and Willis

in May 1999. Corroon Limited. He is a University of Auckland Councillor and a business consultant to various

4. J M Hughes, BA private and government enterprises. > Jacqui Hughes is Deputy Chairperson of Bay of Plenty Regional Council. Jacqui joined the Board of Port of Tauranga Limited in October 1996. PRIDE

14 ANNUAL REPORT 2001 ANNUAL REPORT 2001 15 In its quest to earn the respect of shareholders, customers, staff and the chairman’s review community, the Port team knows that it will be remembered not for its words, but the quality and result of its actions.

INTRODUCTION FINANCIAL PERFORMANCE RETURN OF CAPITAL TO STRATEGIC DIRECTION It has sometimes been assumed that the fortunes of In a year that saw revenue increase to $76.7 million, up SHAREHOLDERS The pursuit of a multi-port operation that provides a New Zealand and our trading partners will be reflected from $69.9 million in the previous year, the Port The Board has been regularly reviewing the need for a choice to customers remains a priority, and is illustrated in the performance of port companies. In the past, the recorded strong growth in nearly all export restructuring of the Company’s balance sheet since by two milestones achieved during 2001. Port of Tauranga’s status as the country’s largest export commodities.This trend reflected the successful season June 1998. The joint venture with Northland Port Corporation to build port by volume meant its annual result was considered enjoyed by exporters of primary products. Another Since that date, the Port of Tauranga has experienced a a new deepwater port at Marsden Point was announced a barometer for the general state of the national factor, however, was also influencing trade volumes. three-fold growth in container numbers, and the in May 2000. Construction started late last year, and is on economy.This was particularly so during the downturn One of the planks of the Port’s growth strategy has been Company’s reported profit has gone up by 82%. target for completion by April 2002. in the fortunes of some Asian economies in 1997-1998. its focus on attracting and retaining shipping services The Board has decided that it has capital that is surplus In February 2001, the Port of Tauranga and its service Demand for New Zealand’s exports continue to be an that will, in turn, draw additional volumes to Tauranga. to the Company’s current and future requirements and will partner Tranz Rail jointly announced an agreement to important contributor to the Port’s fortunes. But as the The diverse and growing number of international therefore return approximately $67 million to shareholders. extend METROPORT Auckland to a 24 hour a day, seven size and spread of the Port’s operations have expanded, shipping lines now calling at the Port has been an days a week operation.The aim was two-fold: to provide the factors influencing its overall performance have important contributor to the record result for 2001. The Port of Tauranga will apply to the High Court for a more flexible service for existing customers, and to become more complex. approval to return the capital to shareholders in the In the year under review one commodity in particular attract additional business. By March, METROPORT was following manner: It is no longer possible to isolate any one aspect of the stood out - dairy products.The Port last year became servicing six customers. Port’s business as the sole driver of profitability.The Port New Zealand’s largest dairy export port, and has further • The cancellation of one in every eight shares held by Looking ahead, the trading environment will continue to has, over the past four years, dedicated itself to enhanced this position in 2001. each shareholder in the Company, together with the test the Port. Log markets, in particular, are volatile. Other developing new business opportunities.This rights attaching to those shares; Container volumes too continued to show strong commodities - such as dairy, meat and horticultural diversification has, in turn, increased the Port’s revenue • The payment to each shareholder of $7.00 for each growth. A 22% increase in container movements - from products - look as though they will remain buoyant. stream. share cancelled. 235,905 last year to 286,806 in the year to June 2001 - Uncertainty is a constant for today’s importers and At the same time, the Company has concentrated on illustrated the Port’s increasing importance as a major This process will result in the cancellation of approximately exporters.The challenge for the Port is to remain building strong relationships with all its stakeholders, distribution and aggregation centre. 9.6 million shares, leaving approximately 66.9 million responsive to its customers’ evolving needs, and to have the shareholders, customers, staff, and the community. shares on issue at the completion of the transaction. The combined effect of the surge in primary product the flexibility to adjust services speedily - while always In 2001, this approach has enabled the Port to record a volumes, and the expansion of the Port’s container The Company will have the return of capital completed maintaining quality and a focus on cost efficiency. net profit after tax of $22.4 million, up 14% on the business helped to offset the drop in log volumes.The as quickly as possible, subject to the favourable outcome previous year. Company’s business diversification strategies however of a binding ruling from the Inland Revenue Department CONCLUSION meant that significant growth has been achieved in the confirming that the distribution will be tax-free and This result was achieved in a year when the log trade - 2001 has been a very good year for the Port of Tauranga. same period that weak international demand for a approval of the High Court. which accounts for a substantial portion of the Port’s The successes that have been achieved are a tribute to major commodity might have put profitability at risk. trade volumes - was in decline.The Port’s business GOVERNANCE the tenacity, the dedication, and the enthusiasm of the diversification strategies have meant that this downturn The Board has adopted a policy of steadily increasing Port team. On behalf of my fellow Directors, I want to Board Director Ernie Craig retired on 3 August 2001. did not make a serious dent in the overall annual result. dividends when appropriate.The Directors have thank the management team and staff at the Port for Mr Craig was also a Director of Quayside Securities recommended shareholders be paid a fully imputed the pride they take in their work, and the respect they Earnings per share rose from 25.7 cents in 2000 to 29.3 Limited, which administers the shareholding of Bay of final dividend of 15 cents per share, making a total of 24 have earned for this Company. cents.The return on shareholders’ funds has also risen Plenty Regional Council. On behalf of the Board, I would cents a share, up from 22 cents last year. (It is worth from 7.5% in the previous year to 8.4%. Investor like to thank Mr Craig for his years of service to the Port. It is with satisfaction that the Board can report on a year noting that last year’s total payment included a special confidence in the Port’s performance was illustrated by in which the job of running New Zealand’s premier port dividend of 16 cents per share.) Tauranga solicitor Michael Smith, who has expertise in the performance of the share price which reached a has without doubt been well done. commercial and company law, has filled his position. record level of $6.80 by the close of the year under review, compared with $5.00 at 30 June 2000.

FRASER MCKENZIE > Chairman COMMITMENT

16 ANNUAL REPORT 2001 ANNUAL REPORT 2001 17 corporate governance statement Our record profit headlines a story of effort, commitment and chief executive’s a passion for making the Port of Tauranga the cargo gateway ROLE OF THE BOARD BOARD OPERATIONS AND MEMBERSHIP review that customers want to choose. The Board of Directors of Port of Tauranga Limited (“POTL”) POTL’s constitution sets out policies and procedures on the is elected by the shareholders to supervise the operation of the Board, including the appointment and management of the Company and its subsidiary companies removal of Directors.The full Board formally met 10 times and currently has seven Members. during the financial year ended 30 June 2001, including a session to consider the strategic direction of POTL. The Board establishes POTL’s strategic objectives, annual budgets and overall policy framework within which the BOARD COMMITTEES business is conducted.The Board oversees the INTRODUCTION TRADE management of the Company and endeavours to ensure The Board of Directors has established two Committees that the activities undertaken are carried out in the best of the Board for audit and remuneration. Planning for growth in the port sector can be a complex Had the Port of Tauranga confined its scope of interest of shareholders, while respecting the rights of The Audit Committee comprises Messrs A W Capamagian, and challenging task.Variables in the local and world operations to that of a purely regional port, the result other stakeholders. This includes maintaining clear policies F G McKenzie MNZM and H M Titter CMG with Mr Titter economies, the fortunes of customers, and the for 2001 might have been very different. expectations of all stakeholders have to be carefully in relation to employees, customers and the environment. being the Chairman.The Remuneration Committee Logs remain our major trade commodity, and the weighed and balanced. The Board monitors management performance relative comprises Messrs A W Capamagian, E A Craig, F G McKenzie forestry sector has not had a great year.The Japanese to present goals and plans, but delegates day to day and J S Parker. During the year the Audit Committee met The key to maintaining momentum is the Port’s multi- market has been static; Korea is volatile and concerns management to the Chief Executive.The Board operates four times and the Remuneration Committee once. port business approach and its commitment to a choice remain about the longevity of its economic reforms; the under a code of conduct designed to ensure matters can The function of the Audit Committee is to assist the Board of quality services for its customers. soft Australian economy has seen volumes of sawn be discussed openly, frankly and confidentially. timber reduced by up to 50%. Fortunately, the United in carrying out its responsibilities under the Companies We strive for strong, enduring relationships with current States demand for value-added forestry products has The Board are entitled to seek independent professional Act 1993 and the Financial Reporting Act 1993, regarding and new shipping lines, exporters and importers, and held up and remains one of the encouraging markets advice to assist it in meeting its responsibilities.The management’s accounting practices, policies and controls service providers.We promote competition by offering for exporters. Company pays for this advice upon approval by the relative to the Group’s financial position and to review and choice, within the Port and the wider sector.We have Chairman. make appropriate inquiry into the audit of the Group’s invested in state of the art information systems that Overall though, the Port experienced a drop of 237,000 The Board has the obligation to protect and enhance the financial statements by external auditors. The Audit significantly enhance our level of service. tonnes in log volumes in the year to 30 June 2001. Committee operates under a charter approved by the Despite signs of a resurgence in the last two months of value of the assets of the Company. It achieves this These have been among the factors that have enabled Board and reviewed by external auditors each year. the year under review, it is too early to predict any through the approval of appropriate corporate strategies, the Port to achieve its record 2001 result. with particular regard to return expectations, including the The function of the Remuneration Committee is to make lasting improvement. approval of transactions relating to capital expenditures recommendations to the Board concerning the As always, when our customers have to endure world above delegated authority limits, financial and dividend employment of a Chief Executive and the remuneration trade volatility, the Port too must be prepared to deal policy and the ongoing review of performance against policies and packages relating to the Chief Executive and with the repercussions. strategic objectives. senior executives. Yet despite the log trade downturn, the Port has The Board supports the concept of the separation of the exceeded 10 million tonnes of trade volume and it has role of Chairman from that of Chief Executive.The recorded a record net profit after tax. Chairman’s role is to manage the Board effectively, to A major contributor has been the rise in dairy volumes provide leadership to the Board, and to interface with the over the past two years. Chief Executive. With respect to dairy volumes, one would have argued CONFIDENCE that the Port of Tauranga’s location was an obvious 18 ANNUAL REPORT 2001 ANNUAL REPORT 2001 19 Whangarei Harbour

Northport

Port of METROPORT Tauranga AUCKLAND

Brisbane

New Zealand Refining Company

natural advantage - close to large manufacturing plants METROPORT AUCKLAND carriers decided to continue calling at the Port of FUTURE in the Waikato and Bay of Plenty.Yet in the past, this was When METROPORT Auckland was launched in Tauranga and using METROPORT for the Pacific South In 2002, the Port team again faces the demanding task of not enough to secure this important business. Significant December 1998, the short-term aim was to secure one West string. achieving growth in a relatively static trading environment. volumes were being sent by road to competing ports.To major customer to inaugurate the service. In May 1999, The combined effect of these moves was that The challenge remains to increase shareholder returns. meet this challenge we have targeted over the past two that customer - Australia New Zealand Direct Line - METROPORT Auckland became an alternative port Early next year, a further milestone in the Port’s multi-port years new shipping services to commit to calling at announced its intention to shift its port of call from service in the Auckland region with six customers, approach will be achieved in conjunction with our 50% Tauranga, providing improved access to overseas markets. Auckland to Tauranga. rather than one. partner, Northland Port Corporation, with the As a result exports of dairy products through the Port in Over the next year, the success of the Port’s partnership While it was expected that the rationalisation by the commissioning of the new deepwater port at Marsden the year to 30 June 2001 increased by over 25 percent to with ANZDL saw total container volumes in the year to VSA would result in some reduction of import volume, Point.This development has been progressing on schedule 692,400 tonnes - up from 551,700 the previous year. In June 2000 rise by 110% to 236,000.That trend continued new volume from FESCO’s Far East service was and on budget, and will be operating as planned in excess of a third of all export dairy products now pass in the following six months with further strong growth. predicted to more than offset this effect.The decision in April 2002. It is a project that has drawn heavily on the through the Port of Tauranga. knowledge and the practical abilities of the Port team. It Early in 2001, the Port reached an agreement with service April by Wallenius Wilhelmsen to begin a new monthly will make a significant contribution to the Northland At the same time, considerable effort has gone into partner Tranz Rail to extend METROPORT from a weekend service covering Europe, America, Australia, and Asia economy - and to the Port’s opportunities for growth. better understanding the needs of our dairy export service, to one that could also operate during the week. was a further boost to the Port’s menu of services and customers.The decision to build a new 7,000 square The agreement was critical to growth plans and resulted the choices available to importers and exporters. At the close of the 2001 financial year, the Company’s metre dairy shed at the Port, capable of handling 30% in the Port gaining its second METROPORT customer. By the close of the financial year, container traffic had profitability was good news for shareholders, customers, more dairy cargo, has been taken in close consultation increased to 286,806 TEUs (twenty foot equivalent staff and service providers,and the Bay of Plenty community. with Anchor Products, with the facility being designed to In March 2001, FESCO New Zealand Express Line units), a 22% increase on the previous year’s record of their specifications. It is due for completion by early announced it would make Tauranga its sole North Island I extend my sincere thanks to all those who have - 235,905 TEUs. September, in time for the new dairy season. port of call for its fixed day weekly service to the Far East, through their connections with the Port - helped us moving its business away from Auckland. We recently learnt that the Port’s achievements have achieve this result. Frozen meat and kiwifruit also showed strong growth - attracted the attention of commentators from further again, a response to the choice of shipping services In the same month, a vessel sharing agreement (VSA) afield. Containerport magazine, a respected London- calling at Tauranga, and the determination to meet the between ANZDL, Columbus Line, FESCO and P&O Nedlloyd based trade publication, named the Port of Tauranga as

specific needs of these export customers. meant these four carriers would between them service the twice-weekly connection between New Zealand, the fastest growing container port in the world for the

And, once again, the Port’s container business exceeded year 1999-2000. Australia, and the West Coast of North America.The four JON MAYSON > Chief Executive growth expectations.

PROMISES HONORING

20 ANNUAL REPORT 2001 ANNUAL REPORT 2001 21 report of the directors

to the shareholders REMUNERATION OF EMPLOYEES F G McKenzie MNZM gave general notice that he is a The number of employees whose total annual Director of Northport Limited. remuneration including salary, performance bonuses, an H R L Morrison gave general notice that is a Director of Economic Value Added based Executive Incentive Scheme, Hettinger Nominees Limited, and Utilico International employer’s contributions to superannuation and health Limited and no longer a Director of Infratil Australia schemes and other sundry benefits received in their Limited and Infratil International Limited. capacity as employees, was within the specified bands J S Parker gave general notice that he is a Chairman of as follows: Your Directors take pleasure in presenting their annual DIVIDENDS Cervena Trust Limited, Director of Dairy Meats (NZ) Limited report including the financial statements of the Company An interim dividend on ordinary shares of 9.0 cents per and Northport Limited, and Director/Shareholder of GROUP & PARENT and its subsidiaries for the year ended 30 June 2001. share was paid during the year. Implan Technologies Limited and Nuzeafarm (Singapore) Limited, and that he is no longer a Director The report includes all information required to be Your Directors have recommended paying a final $000 2001 2000 of NZ Apple & Pear Marketing Board, Frucor Holdings disclosed under the Companies Act 1993 and by the dividend of 15.0 cents per ordinary share. The dividend Limited, Richmond Limited and Aon Risk Services NZ New Zealand Stock Exchange. will be paid on 2 November 2001 to all shareholders on 100 - 109 9 5 Limited. the Company’s register at the close of business on ACTIVITIES 110 - 119 2 3 Friday 19 October 2001. A solvency certificate has been 120 - 129 0 1 H M Titter CMG gave general notice that he is Chairman During the year the Group continued with the provision completed in support of the dividend resolution. 190 - 199 2 0 of Trust Power Limited, and a Director of Northport of wharf facilities, back up land for the storage and Limited, Uniservices Limited and Willis Corroon Limited All ordinary dividends are fully imputed. Non-resident 200 - 209 0 1 transit of import and export cargo, berthage, cranes, tug and that he is no longer a Director of FERNZ shareholders will receive an additional amount under 220 - 229 2 1 and pilotage services for exporters, importers and Corporation Limited. the foreign investor tax credit regime in lieu of 230 - 239 0 1 shipping companies and the leasing of land and buildings. imputation credits. 240 - 249 1 0 Share Purchases The Group also operates a container terminal in 250 - 259 0 1 During the period there were no acquisitions of a relevant competition with other service providers and has a 50% DIRECTORS 350 - 359 1 0 interest in equity securities issued by the Company. shareholding in The Cargo Company Limited, a company As provided by clauses 10.4 and 10.5 of the Company’s 360 - 369 0 1 operating for the purpose of promoting warehousing, constitution, Harold Mervyn Titter CMG and Michael Directors’ Loans packing and distribution of cargo. John Smith retire at the Annual Meeting, and being Buyouts of former employment conditions are excluded There were no loans by the Company to Directors. Additionally at balance date in conjunction with eligible they offer themselves for re-election to the Board. from the above figures. Northland Port Corporation (NZ) Limited construction Ernest Arthur Craig retired from the Board on 3 August Directors’ Insurance was taking place of a deep water port at Marsden Point AUDITORS 2001 and Michael John Smith was appointed by The Group has arranged policies of Directors’ Liability on a 50:50 basis. Construction is progressing Directors to replace Mr Craig. Under section 19 of the Port Companies Act 1988, the Insurance which, together with a Deed of Indemnity, satisfactorily - on schedule for an April 2002 opening Audit Office is the Auditor of the Company.The Audit ensures that generally Directors will incur no monetary and on budget.This joint venture is further explained REMUNERATION OF DIRECTORS Office has appointed, pursuant to section 29 of the Public loss as a result of actions undertaken by them as under note 13 to the financial statements. Directors’ fees received, or due and receivable during Finance Act 1977, the firm of PricewaterhouseCoopers Directors. Certain actions are specifically excluded, for to undertake the Audit on its behalf. example the incurring of penalties and fines which may RESULTS the year, are as follows: The amount paid as audit fees and for other services be imposed in respect of breaches of the law. The past financial period has been another period of GROUP & PARENT provided by the Auditors is set out in the accounts. progress for the Group. Net-tax paid surplus for the year For and on behalf of the Board of Directors was $22,412,000 (2000: $19,650,000) an increase of 14% 2001 2000 INTERESTED TRANSACTIONS over the results of 2000.When adjusted for sale of assets $$ The Directors have disclosed the following transactions in 2001 a 6% increase was achieved. Equity of the Group with the Company. at year end totalled $273,808,000, compared with the F G McKenzie 53,200 53,200 ...... 2000 year end total of $258,157,000. A W Capamagian 27,000 29,640 Interested Transactions Chairman E A Craig 25,800 25,800 Fixed assets are valued at $343,053,000 compared with A W Capamagian gave general notice that he is a J M Hughes 25,000 25,000 $340,649,000 last year. Director & Trustee Shareholder of Owens Services B.O.P. H R L Morrison 25,000 25,000 Limited, and a Director & Shareholder of Capamagian J S Parker 25,000 25,000 ...... Trustee Services Limited. H M Titter 29,000 25,800 Director E A Craig gave general notice that he is a Chairman of Custodial Services Limited. 29 August 2001

22 ANNUAL REPORT 2001 ANNUAL REPORT 2001 23 REPORT OF THE AUDIT OFFICE To the readers of the Financial Statements of Port of Tauranga Limited and Group for the year ended 30 June 2001 We have audited the financial statements on pages 26 to 41.The financial statements provide information about the past financial performance and financial position of the Port of Tauranga Limited and Group as at 30 June 2001.This information is stated in accordance with the accounting policies set out on pages 30 to 31.

RESPONSIBILITIES OF THE BOARD OF DIRECTORS The Port Companies Act 1988 and the Financial Reporting Act 1993 require the Board of Directors (the Board) to prepare financial statements which comply with generally accepted accounting practice and give a true and fair view of the financial position of Port of Tauranga Limited and Group as at 30 June 2001 and the results of its operations and cash flows for the year ended 30 June 2001.

AUDITORS’ RESPONSIBILITIES Section 19(1) of the Port of Companies Act 1988 requires the Audit Office to audit the financial statements presented by the Board. It is financial statements the responsibility of the Audit Office to express an independent opinion on the financial statements and report its opinion to you. The Controller and Auditor-General have appointed Peter Scott, of PricewaterhouseCoopers, to undertake the audit.

BASIS OF OPINION An audit includes examining, on a test basis, evidence relevant to the amounts and disclosures in the financial statements. It also includes assessing: • the significant estimates and judgements made by the Board in the preparation of the financial statements; and • whether the accounting policies are appropriate to the Port of Tauranga Limited and Group’s circumstances, consistently applied and adequately disclosed. We conducted our audit in accordance with generally accepted auditing standards, including the Auditing Standards issued by the 2001 CONTENTS Institute of Chartered Accountants of New Zealand.We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the Statements of Financial Performance 26 financial statements are free from material misstatements, whether caused by fraud or error. In forming our opinion, we also evaluated Statements of Movements in Equity 26 the overall adequacy of the presentation of information in the financial statements. Statements of Financial Position 27 We have carried out other assignments for the Port of Tauranga Limited in the area of taxation advice. Other than these assignments and Statements of Cash Flows 28 in our capacity as auditor acting on behalf of the Controller and Auditor-General, we have no relationship with, or interests in the Port of Notes to the Financial Statements 30 Tauranga Limited or any of its subsidiaries. Financial and Operational Five Year Summary 42 UNQUALIFIED OPINION Security Holding Statistics 43 We have obtained all the information and explanations we have required. In our opinion: • proper accounting records have been kept by the Port of Tauranga Limited and Group as far as appears from our examination of those records; and • the financial statements of the Port of Tauranga Limited and Group on pages 26 to 41: • comply with generally accepted accounting practice; and • give a true and fair view of: - the financial position as at 30 June 2001; and - the results of operations and cash flows for the year ended on that date. Our audit was completed on 29 August 2001 and our unqualified opinion is expressed as at that date.

DP Scott PricewaterhouseCoopers On behalf of the Controller and Auditor-General Auckland, New Zealand

24 ANNUAL REPORT 2001 ANNUAL REPORT 2001 25 statements of financial statements of financial performance position FOR THE YEAR ENDED 30 JUNE 2001 AS AT 30 JUNE 2001

GROUP PARENT COMPANY GROUP PARENT COMPANY

2001 2000 2001 2000 2001 2000 2001 2000 Notes $000 $000 $000 $000 Notes $000 $000 $000 $000

REVENUE $76,686 $69,866 $76,686 $69,866 EQUITY Paid in capital 6 76,519 76,394 76,779 76,394 SURPLUS BEFORE TAXATION 2 32,784 29,810 32,801 29,827 Reserves 7 164,949 164,873 164,144 164,068 Taxation expense 3 10,620 10,325 10,618 10,325 Retained earnings 32,340 16,890 31,956 16,735 273,808 258,157 272,879 257,197 SURPLUS AFTER TAXATION 22,164 19,485 22,183 19,502 Share of surpluses less losses of associate companies after tax 4 248 165 - - NON CURRENT LIABILITIES Term liabilities 8 77,052 76,000 77,000 76,000 SURPLUS ATTRIBUTABLE TO THE SHAREHOLDERS OF Deferred taxation 9 3,552 3,671 3,552 3,671 THE PARENT COMPANY $22,412 $19,650 $22,183 $19,502 80,604 79,671 80,552 79,671

CURRENT LIABILITIES Accounts payable and accruals 10 7,103 6,367 7,103 6,367 statements of movements Provision for dividend 5 - 10,693 - 10,693 Provision for taxation 586 - 586 - in equity 7,689 17,060 7,689 17,060 FOR THE YEAR ENDED 30 JUNE 2001 $362,101 $354,888 $361,120 $353,928

NON CURRENT ASSETS GROUP PARENT COMPANY Fixed assets 11 343,053 340,649 341,719 339,297 Advances and prepayments 12 5,475 - 6,211 602 2001 2000 2001 2000 Investments 13 890 859 476 695 Notes $000 $000 $000 $000 349,418 341,508 348,406 340,594

CURRENT ASSETS EQUITY AS AT 1 JULY 2000 258,157 268,567 257,197 267,755 Cash 1,342 874 1,342 874 Receivables 14 9,621 11,395 9,621 11,395 Net surplus 22,412 19,650 22,183 19,502 Advances and prepayments 15 1,693 977 1,724 931 Inventories 16 27 19 27 19 Decrease in treasury stock 6 125 125 385 125 Taxation - 115 - 115 Ordinary dividends 5 (6,886) (29,028) (6,886) (29,028) 12,683 13,380 12,714 13,334 Asset revaluation 7 76 (1,157) 76 (1,157) $362,101 $354,888 $361,120 $353,928 Transfer from retained earnings (76) - (76) - (6,761) (30,060) (6,501) (30,060) For and on behalf of the Board of Directors who authorised EQUITY AS AT 30 JUNE 2001 $273,808 $258,157 $272,879 $257,197 these financial statements for issue on 29 August 2001.

...... Chairman Director

These statements are to be read in conjunction with the notes on pages 30 to 41 and the Auditors’ Report on page 24. These statements are to be read in conjunction with the notes on pages 30 to 41 and the Auditors’ Report on page 24.

26 ANNUAL REPORT 2001 ANNUAL REPORT 2001 27 statements of cashflows statements of cashflows FOR THE YEAR ENDED 30 JUNE 2001 FOR THE YEAR ENDED 30 JUNE 2001

GROUP PARENT COMPANY GROUP PARENT COMPANY

2001 2000 2001 2000 2001 2000 2001 2000 $000 $000 $000 $000 $000 $000 $000 $000

CASH FLOWS FROM OPERATING ACTIVITIES NET INCREASE/(DECREASE) IN CASH HELD 468 1,366 468 1,411 Cash was provided from: Add opening cash brought forward 874 (492) 874 (537) Receipts from customers 76,962 67,549 76,962 67,549 Ending Cash Carried Forward $1,342 $874 $1,342 $874 Interest received 137 129 137 129 77,099 67,678 77,099 67,678 CASH BALANCES IN STATEMENTS OF FINANCIAL POSITION Cash was applied to: Cash 1,342 874 1,342 874 Payments to suppliers and employees (29,813) (28,829) (29,813) (28,784) Ending Cash Carried Forward $1,342 $874 $1,342 $874 Taxes paid (10,038) (8,641) (10,038) (8,641) Interest paid (5,776) (4,655) (5,776) (4,655) RECONCILIATION OF SURPLUS AFTER TAXATION TO CASH FLOW FROM OPERATING ACTIVITIES (45,627) (42,125) (45,627) (42,080) Net Cash Inflow From Operating Activities $31,472 $25,553 $31,472 $25,598 Reported Surplus After Taxation 22,164 19,485 22,183 19,502 Add/(less) non-cash items and non operating items: CASH FLOWS FROM INVESTING ACTIVITIES Depreciation and amortisation 7,263 6,377 7,244 6,360 Cash was provided from: Gain on sale of fixed assets (1,621) - (1,621) - Proceeds from sale of fixed assets 2,035 4,135 2,035 4,135 Increase/(decrease) in deferred taxation (119) 1,263 (119) 1,263 Proceeds from repayment of advances 107 29 107 29 5,523 7,640 5,504 7,623 Proceeds from investments 217 - 217 - Add/(less) movements in working capital: 2,359 4,164 2,359 4,164 (Increase)/decrease in receivables 1,774 (2,188) 1,774 (2,188) Cash was applied to: (Increase)/decrease in prepayments 710 (245) 710 (200) Cash outflow for fixed assets (9,428) (11,201) (9,428) (11,201) (Increase)/decrease in inventories (8) (14) (8) (14) Cash outflow for advances (241) (14) (241) (14) (Decrease)/increase in provision for taxation payable 701 425 701 425 Cash outflow for rail services agreement (7,500) - (7,500) - (Decrease)/increase in accounts payable and accruals 608 450 608 450 (17,169) (11,215) (17,169) (11,215) 3,785 (1,572) 3,785 (1,527) Net Cash Used in Investing Activities $(14,810) $(7,051) $(14,810) $(7,051) Net Cash Flow From Operating Activities $31,472 $25,553 $31,472 $25,598

CASH FLOWS FROM FINANCING ACTIVITIES Cash was provided from: Net proceeds from sale of treasury stock 385 125 385 125 Net proceeds from long term debt 1,000 11,000 1,000 11,000 1,385 11,125 1,385 11,125 Cash was applied to: Dividends paid (17,579) (28,261) (17,579) (28,261) (17,579) (28,261) (17,579) (28,261) Net Cash Used in Financing Activities $(16,194) $(17,136) $(16,194) $(17,136)

These statements are to be read in conjunction with the notes on pages 30 to 41 and the Auditors’ Report on page 24. These statements are to be read in conjunction with the notes on pages 30 to 41 and the Auditors’ Report on page 24.

28 ANNUAL REPORT 2001 ANNUAL REPORT 2001 29 notes to and forming part notes to and forming part of the financial statements of the financial statements FOR THE YEAR ENDED 30 JUNE 2001 FOR THE YEAR ENDED 30 JUNE 2001

1:STATEMENT OF ACCOUNTING POLICIES 1:STATEMENT OF ACCOUNTING POLICIES (CONTINUED)

REPORTING ENTITY (e) Receivables Port of Tauranga Limited is a public company registered under the Companies Act 1993 and listed on the New Zealand Stock Receivables are stated at their estimated realisable value after providing against debts where collection is doubtful. Exchange. (f) Income Tax The income tax expense charged to the Statements of Financial Performance includes both the current year’s provision and the The Group consists of Port of Tauranga Limited, its subsidiaries and associates (as disclosed in note 13). income tax effects of timing differences calculated using the liability method. Port of Tauranga Limited is an issuer for the purposes of the Financial Reporting Act 1993.The financial statements and group Tax effect accounting is applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account, financial statements of Port of Tauranga Limited have been prepared in accordance with the Financial Reporting Act 1993. arising from timing differences or income tax benefits from income tax losses, is only recognised if there is virtual certainty of realisation. MEASUREMENT BASE (g) Advances and Investments The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain assets as Advances and investments are stated at the lower of cost or net realisable value. identified in specific accounting policies below. (h) Inventories Inventories are stated at the lower of cost, determined on a weighted average basis, and net realisable value. SPECIFIC ACCOUNTING POLICIES (i) Employee Entitlements The following specific accounting policies which materially affect the measurement of financial performance and the financial Provision is made for benefits accruing to employees for annual leave and service pay. position have been applied: (j) Sale of Sand _ (a) Basis of Consolidation Purchase Method Income from the sale of sand from capitalised dredging is offset against the capital cost of dredging. The consolidated financial statements include the holding company and its subsidiaries which are accounted for using the (k) Financial Instruments purchase method. All significant inter-company transactions are eliminated on consolidation.There are no in-substance The Group is party to financial instruments with off balance sheet risk to meet financing needs.These financial instruments subsidiaries. include bank overdraft facilities and interest rate swap agreements. (b) Associate Companies The Group enters into interest rate swap agreements to reduce the impact of changes in interest rates on its commercial bill These are companies in which the Port of Tauranga Limited Group holds a significant but not controlling shareholding, and in borrowings. Any difference to be paid is accrued as interest rates change, and is recognised as a component of interest expense whose commercial and financial policy decisions it participates. over the life of the agreement. The financial statements of associate companies have been reflected in the consolidated financial statements on an equity (l) Dredging accounting basis which shows the Group’s share of tax paid surpluses in the Consolidated Statements of Financial Performance Capital dredging is not depreciated on the basis that maintenance dredging is performed whereby channels are returned to and its share of post acquisition increases or decreases in net assets, in the Consolidated Statements of Financial Position. their original state. Maintenance dredging is depreciated over 5 years. (c) Fixed Assets (m) Statements of Cash Flows The Group has five classes of fixed assets: The following are the definitions of the terms used in the Statements of Cash Flows: • Freehold land (i) Cash is considered to be cash on hand and current accounts in banks, net of bank overdrafts. • Freehold buildings (ii) Investing activities are those activities relating to the acquisition, holding and disposal of fixed assets and of investments. • Wharves and hardstanding Investments can include securities not falling within the definition of cash. • Harbour improvements (iii) Financing activities are those activities which result in changes in the size and composition of the capital structure of the • Plant and equipment Group.This includes both equity and debt not falling within the definition of cash. Dividends paid in relation to the capital The cost of purchased fixed assets is the value of the consideration given to acquire the assets and the value of other directly structure are included in financing activities. attributable costs which have been incurred in bringing the assets to the location and condition necessary for their intended (iv) Operating activities include all transactions and other events that are not investing or financing activities. service. (n) Treasury Stock The cost of assets constructed by the Group includes the cost of all materials used in construction, direct labour on the project Treasury stock held by the Company is shown as a reduction in equity. For treasury stock, subsequently issued, any excess or and an appropriate proportion of variable and fixed overheads. Costs cease to be capitalised as soon as the asset is ready for deficit between the purchase price and issue price is adjusted to paid in capital. productive use. (o) Dividends Revaluations Provision is made for dividends once they have been approved by the Board of Directors. Land, buildings, harbour improvements, wharves and hardstanding are revalued at Market Value for Existing Use for non- (p) Revenue specialised operational assets and Optimised Depreciated Replacement Cost (ODRC) for specialised assets. Revenue is recognised when the related service is performed. If at year end, the service is in progress then the portion The revaluations are conducted by independent registered valuers on a systematic basis across the Group so that each asset is performed is recognised in the current year. included at a valuation undertaken within three years. CHANGES IN ACCOUNTING POLICIES (d) Depreciation The Group and Parent have changed their policy in respect of providing for future dividends. Under the new policy, dividends are Depreciation is provided on a straight line basis on all tangible fixed assets other than freehold land and harbour only provided for in the financial statements if they have been authorised by the Board of Directors prior to year end. Formerly, improvements, at rates calculated to allocate the assets’ cost or valuation less estimated residual value, over their estimated dividends authorised after year end were provided for. useful lives. Major depreciation periods are: The Board of Directors have adopted this change in accounting policy to conform with the requirements of FRS-5 “Events After Balance Date” which was issued during the year. • Freehold - buildings 40 to 100 years • Gantry cranes 10 to 25 years • Wharves and hardstanding 10 to 60 years • Floating plant 10 to 25 years This change in policy has resulted in there being no liability recognised in the Financial Statements for the final dividend authorised • Wharf rocks 150 to 200 years • Plant and equipment 5 to 25 years in respect of this years surplus.This amount is, however, disclosed in note 5. • Wharf piles 60 to 130 years • Electronic equipment 3 to 5 years There have been no other changes in accounting policies.

30 ANNUAL REPORT 2001 ANNUAL REPORT 2001 31 notes to and forming part notes to and forming part of the financial statements of the financial statements FOR THE YEAR ENDED 30 JUNE 2001 FOR THE YEAR ENDED 30 JUNE 2001

GROUP PARENT COMPANY 2:SURPLUS BEFORE TAXATION 3:TAXATION (CONTINUED) GROUP & PARENT IMPUTATION CREDIT ACCOUNT 2001 2000 2001 2000 2001 2000 $000 $000 $000 $000 $000 $000 After charging: Balance as at 1 July 2000 2,456 8,042 Bad debts written off - 18 - 18 Income tax payments during the year 9,862 8,020 Depreciation 6,738 6,377 6,721 6,360 Imputation credits attaching to dividends paid in the year (8,468) (13,606) Directors’ fees 225 207 225 207 Balance as at 30 June 2001 $3,850 $2,456 Interest - fixed loans 5,887 4,873 5,887 4,873 Operating lease payments 292 310 292 310 GROUP Maintenance dredging amortisation 253 18 253 18 4:ASSOCIATE COMPANIES Rail services amortisation 525 - 525 - 2001 2000 After crediting: $000 $000 Interest income 137 131 137 131 Share of surpluses less deficits of associate companies before tax 378 251 Gain on sale of assets 1,621 682 1,621 682 Taxation (130) (86) Share of retained surpluses less deficits of associate companies $248 $165 REMUNERATION OF AUDITORS GROUP & PARENT Amounts received, or due and receivable by the auditors for: 5:DIVIDENDS PAID AND PROVIDED Auditing the Financial Statements: PricewaterhouseCoopers 55 38 55 38 2001 2000 $000 $000 Other services: PricewaterhouseCoopers 62 64 62 64 Interim dividend paid 9.0c per share (2000: 8.0cps) 6,886 6,111 Special dividend paid 0c per share (2000: 16.0cps) - 12,224 3:TAXATION GROUP PARENT COMPANY Final dividend proposed 0c per share (2000: 14.0cps) - 10,693 $6,886 $29,028 2001 2000 2001 2000 $000 $000 $000 $000 A final dividend of 15 cents per share ($11,469,000) has been approved subsequent to balance date. In accordance with FRS-5 “Events After Balance Date”, which was issued during the year, as this was not approved until after year Surplus for the period 32,784 29,810 32,801 29,827 end, it has not been provided for in the current year financial statements. 6:CAPITAL Income tax on the surplus for the period at 33.0c 10,819 9,837 10,824 9,843 GROUP PARENT COMPANY ORDINARY SHARES ISSUED Plus/(less) taxation effect of permanent differences: Non-assessable income (46) - (46) - 2001 2000 2001 2000 (Gain)/loss on sale (436) - (436) - Balance as at 1 July 2000 76,463,012 76,463,012 76,463,012 76,463,012 Non-deductible expenditure 19 3 19 (3) Treasury stock (62,400) (82,200) (5,300) (82,200) Notional interest on employee share scheme (5) (2) (5) (2) Balance as at 30 June 2001 76,400,612 76,380,812 76,457,712 76,380,812 Revaluation depreciation 269 487 262 487

$10,620 $10,325 $10,618 $10,325 PAID IN CAPITAL GROUP PARENT COMPANY

The income tax expense is represented by: 2001 2000 2001 2000 Tax payable in respect of the current period 10,718 9,472 10,716 9,472 $000 $000 $000 $000 Deferred taxation (98) 853 (98) 853 Balance as at 1 July 2000 76,394 76,269 76,394 76,269 $10,620 $10,325 $10,618 $10,325 Movement in treasury stock 125 125 385 125 Balance as at 30 June 2001 $76,519 $76,394 $76,779 $76,394 There are no income tax losses or unrecognised timing differences carried forward.

32 ANNUAL REPORT 2001 ANNUAL REPORT 2001 33 notes to and forming part notes to and forming part of the financial statements of the financial statements FOR THE YEAR ENDED 30 JUNE 2001 FOR THE YEAR ENDED 30 JUNE 2001

6:CAPITAL (CONTINUED) 9:DEFERRED TAXATION GROUP & PARENT

During the year the Company issued 25,400 shares to staff at a price of $5.70, and 51,500 to Port of Tauranga Trustee Company 2001 2000 Limited, at a price of $4.67. $000 $000 The shares held by Port of Tauranga Trustee Company Limited are held in trust for employees who may subscribe for them as Balance as at 1 July 2000 (3,671) (2,408) described in note 21. Prior period adjustment 21 (410) The Port of Tauranga Trustee Company has been consolidated and accordingly shares held and balances owed related to those Transfer to Statements of Financial Performance 98 (853) shares reduce both paid up in capital and shares issued. Balance as at 30 June 2001 $(3,552) $(3,671) TREASURY STOCK During 1998 the Company repurchased 106,000 ordinary shares on the New Zealand Stock Exchange for a total consideration of 10:ACCOUNTS PAYABLE GROUP PARENT COMPANY $329,660. At balance date the Company held in treasury stock 62,400 shares as follows: 57,100 Held by Port of Tauranga Trustee Company Limited 2001 2000 2001 2000 5,300 Held as Treasury Stock by parent company $000 $000 $000 $000

62,400 Held by Group Accounts payable 4,799 4,566 4,799 4,566 Accruals 862 646 862 646 7:RESERVES GROUP PARENT COMPANY Employee entitlements 1,263 1,026 1,263 1,026 Payments to associate companies 179 129 179 129 $7,103 $6,367 $7,103 $6,367 2001 2000 2001 2000 $000 $000 $000 $000 GROUP PARENT COMPANY ASSET REVALUATION RESERVE 11:FIXED ASSETS Balance as at 1 July 2000 164,873 166,030 164,068 165,225 2001 2000 2001 2000 Net revaluations - (1,157) - (1,157) $000 $000 $000 $000 Transfer from retained earnings on disposal of assets 76 - 76 - Freehold land: Balance as at 30 June 2001 $164,949 $164,873 $164,144 $164,068 At cost 4,902 1,751 4,902 1,751 At valuation 81,113 81,113 80,023 80,023 $86,015 $82,864 $84,925 $81,774 No assets were revalued during the year. Freehold buildings: At cost 881 742 881 742 GROUP PARENT COMPANY 8:TERM LIABILITIES At valuation 41,041 41,041 40,762 40,762 Accumulated depreciation (2,539) (1,314) (2,504) (1,297) 2001 2000 2001 2000 $39,383 $40,469 $39,139 $40,207 $000 $000 $000 $000 Wharves and hardstanding: At cost 2,386 1,280 2,386 1,280 Commercial bills 77,000 76,000 77,000 76,000 At valuation 107,796 107,796 107,796 107,796 Cash advances 52 - - - Accumulated depreciation (4,753) (2,345) (4,753) (2,345) $77,052 $76,000 $77,000 $76,000 $105,429 $106,731 $105,429 $106,731 Harbour improvements: Repayable two to five years 77,052 76,000 77,000 76,000 At cost 1,036 12 1,036 12 $77,052 $76,000 $77,000 $76,000 At valuation 71,967 72,108 71,967 72,108 Weighted average interest rate - % pa 6.50% 6.96% 6.50% 6.96% Accumulated depreciation (160) (60) (160) (60) $72,843 $72,060 $72,843 $72,060 COMMERCIAL BILL/CASH ADVANCE FACILITY Plant and equipment: The Company has financing arrangements with ANZ Banking Group (New Zealand) Limited and Bank of New Zealand Limited, with At cost 58,311 53,390 58,311 53,390 facilities maturing on 31 July 2004 and 31 July 2003 respectively. Accumulated depreciation (20,978) (18,196) (20,978) (18,196) Securities for the facilities is by a Registered First Ranking Debenture over the assets of the Company. $37,333 $35,194 $37,333 $35,194 Work in progress: $2,050 $3,331 $2,050 $3,331 Total cost or valuation 371,483 362,564 370,114 361,195 Total accumulated depreciation (28,430) (21,915) (28,395) (21,898) Total fixed assets $343,053 $340,649 $341,719 $339,297

34 ANNUAL REPORT 2001 ANNUAL REPORT 2001 35 notes to and forming part notes to and forming part of the financial statements of the financial statements FOR THE YEAR ENDED 30 JUNE 2001 FOR THE YEAR ENDED 30 JUNE 2001

11:FIXED ASSETS (CONTINUED) 13:INVESTMENTS (CONTINUED)

All land, buildings, harbour improvements, wharves and hardstanding were revalued at Market Value - Existing Use for non- INVESTMENTS IN ASSOCIATES COMPRISE GROUP PARENT COMPANY specialised assets and Optimised Depreciated Replacement Cost (ODRC) for specialised assets.The valuation was carried out as at 30 June 1999 by registered valuer, Mr L T Green of Property Works Limited in accordance with guidelines prepared by the 2001 2000 2001 2000 Ernst & Young Real Estate Group.The revaluation increased the value of the fixed assets by $166.0 million for the Group $000 $000 $000 $000 ($165.2 million Parent). It is intended that future revaluations will be carried out at three yearly intervals. Refer also to note 7. Shares at cost 1 1 1 1 Plus share of post acquisition retained earnings and reserves 414 164 - - 12:ADVANCES AND PREPAYMENTS GROUP PARENT COMPANY Dividends - - - - 415 165 1 1

2001 2000 2001 2000 Advances to associates 475 694 475 694 $000 $000 $000 $000 $890 $859 $476 $695

Port of Tauranga Services Company Limited - - 602 602 PERCENTAGE HELD BALANCE DATE Employees in share ownership plan (refer note 21) - - 134 - Rail services agreement 5,475 - 5,475 - 2001 2000 $5,475 - $6,211 $602 Refit New Zealand Limited 33% 33% 30 June (unaudited) The advance to the Port of Tauranga Services Company Limited is repayable upon demand. The Cargo Company Limited 50% 50% 31 March The advance to employees is repayable over three years. The principal activities of the associate companies are: Port of Tauranga Limited has made a $7,500,000 prepayment to Tranz Rail for expanded services and obligations over a five year period relating to a seven day a week rail link to METROPORT Auckland.This amount is amortised on a straight line basis over five Refit New Zealand Limited Slipway years. At balance date $6,975,000 was prepaid, of this $1,500,000 is included in current assets. The Cargo Company Limited Cargo consolidation and marshalling JOINT VENTURE 13:INVESTMENTS GROUP PARENT COMPANY On 28 July 2000 Directors of Port of Tauranga Limited signed a 50:50 joint venture agreement with Northland Port Corporation (NZ) Limited (NPC).The parties are constructing and establishing a deep water port at Marsden Point which is scheduled for completion during April 2002. 2001 2000 2001 2000 $000 $000 $000 $000 The joint venture company (Northport Limited) has been formed with a share capital of $30 million. Investments at cost comprise: The capital will be subscribed for by the parties on a 50:50 basis. Investment in associate companies 890 859 476 695 Northport has purchased assets at valuation from NPC necessary to undertake the project.These assets comprise resource $890 $859 $476 $695 consents, approximately 15ha of land, some floating plant and navigational aids. Capital expenditure on the project, estimated at $65 million, will be undertaken by Northport. INVESTMENT IN SUBSIDIARIES COMPRISE (WHOLLY OWNED) The balance of funding required by Northport will be by borrowing which will be guaranteed by the Northport parties severally. Balance Date Debt finance will be used initially followed by the partners equity contributions expected to be made from October 2001 onwards. Port of Tauranga Trustee Company Limited 30 June The Board of Northport consists of six Directors, three from NPC and three from Port of Tauranga. Port of Tauranga Directors are Port of Tauranga Services Company Limited 30 June Fraser McKenzie MNZM, John Parker and Harold Titter CMG. The principal activity of Port of Tauranga Trustee Company Limited is to hold shares in trust for employees.The Company has no For the first two years the Chairman has been appointed by NPC, and from the April 2002 commissioning date the Chief Executive trading activities and the issued and paid up capital is $2. Officer will be the Chief Executive of Port of Tauranga Limited, Jon Mayson. The Port of Tauranga Services Company Limited owns property that is leased to Port of Tauranga Limited and has issued capital of NPC is managing the construction process using the project team which has been involved throughout the consent process. $1,000 paid up to $2. The Company has not commenced trading as at balance date and no equity contribution has been made. Included in capital commitments as disclosed in note 19 is $15 million for the Company’s equity contribution to be made in the next financial year.

36 ANNUAL REPORT 2001 ANNUAL REPORT 2001 37 notes to and forming part notes to and forming part of the financial statements of the financial statements FOR THE YEAR ENDED 30 JUNE 2001 FOR THE YEAR ENDED 30 JUNE 2001

14:RECEIVABLES GROUP PARENT COMPANY 18:RELATED PARTY TRANSACTIONS During the year there have been the following transactions with related parties: 2001 2000 2001 2000 • Advances to the Port of Tauranga Services Company Limited as disclosed in note 12. $000 $000 $000 $000 • No related party debts have been written off or forgiven during the year. During the year the Parent Company charged the following rentals to associate companies: Receivables 9,871 11,645 9,871 11,645 • Refit New Zealand Limited $160,000 (2000: $160,000) Provision for doubtful debts (250) (250) (250) (250) CONTROLLING ENTITY $9,621 $11,395 $9,621 $11,395 Quayside Securities Limited owns 55.06% of the ordinary shares in Port of Tauranga Limited. Quayside Securities Limited is beneficially owned by Bay of Plenty Regional Council. 15:ADVANCES AND PREPAYMENTS GROUP PARENT COMPANY 19:COMMITMENTS 2001 2000 2001 2000 CAPITAL COMMITMENTS GROUP & PARENT $000 $000 $000 $000

2001 2000 Employees in share ownership plan (refer note 21) - 32 74 32 $000 $000 Prepayments and sundry receivables 193 945 150 899 Rail services agreement (refer note 12) 1,500 - 1,500 - Estimated capital expenditure contracted for at balance date but not provided for $18,338 $1,550 $1,693 $977 $1,724 $931

20:CONTINGENT LIABILITIES GROUP & PARENT 16:INVENTORIES GROUP & PARENT

2001 2000 2001 2000 $000 $000 $000 $000

$14,050 - Inventory of consumables $27 $19

Northport has borrowings of $28.1 million which the Port of Tauranga is severally liable for 50%.The Board of Directors believe this guarantee will not be called upon (refer note 13). 17:OPERATING LEASE OBLIGATIONS GROUP & PARENT

2001 2000 21:EMPLOYEE SHARE OWNERSHIP PLAN $000 $000 The Company has an Employee Share Ownership Plan (ESOP), in terms of section DF7 of the Income Tax Act 1994, and as at balance Obligations payable after balance date on non-cancellable operating date the ESOP held ordinary shares in the Company (0.07% of Company’s share capital). leases are as follows: To finance the plan the ESOP borrows from the Company interest free, repayable over three years.The ESOP has no external Within one year 422 275 funding.The ESOP has a non beneficial interest in all shares allocated to employees, and a beneficial interest in shares which have One year to two years 341 203 not been allocated. Two years to five years 798 529 Neither the Company nor its related parties have rights to acquire shares held by the plan. Over five years 1,059 849 Employees are able to subscribe for shares once a year up to a value of $2,340 every three years. $2,620 $1,856 The value of shares issued is set at 90% of the average market price of the share on the day of issue. At balance date the Company held 57,100 shares, of these 52,300 were allocated to employees and have been paid up to $51,172, and $209,470 remains to be paid.This is to be repaid over a three year term. No shares are subject to options. The Trustees of the ESOP are appointed by the Directors of the Company. The shares held by the ESOP carry the same voting rights as other issued ordinary shares.Voting rights attaching to the shares held by Trustees are to be exercised by the Trustees in the case of a vote on a poll, on any particular resolution, as the Trustees in their discretion think fit.

38 ANNUAL REPORT 2001 ANNUAL REPORT 2001 39 notes to and forming part notes to and forming part of the financial statements of the financial statements FOR THE YEAR ENDED 30 JUNE 2001 FOR THE YEAR ENDED 30 JUNE 2001

22:FINANCIAL INSTRUMENTS 22:FINANCIAL INSTRUMENTS (CONTINUED)

CREDIT RISK FAIR VALUES Financial instruments which potentially subject the Group to credit risk principally consist of bank balances, receivables, and The estimated fair values of the Group’s financial assets and liabilities which differ from the carrying values are noted below: interest rate swap agreements. GROUP PARENT COMPANY The Group generally does not require collateral.The Group continuously monitors the credit quality of the financial institutions that are counter parties to its off balance sheet financial instruments and does not anticipate non performance by the counter parties. 2001 2001 2000 2000 Maximum exposures to credit risk as at balance date are: GROUP & PARENT Carrying Fair Carrying Fair Value Value Value Value $000 $000 $000 $000 2001 2000 ASSETS $000 $000 Investments 890 890 859 859

Receivables $9,621 $11,395 LIABILITIES Interest rate swaps (24) (97) (5) 640 The above maximum exposures are net of any provision for losses on these financial instruments. Maximum exposure on interest Term liabilities (77,000) (77,000) (76,000) (76,000) rate swap agreements is limited to any net balance receivable which reflects the difference between the interest payable by the two parties to the agreement. The following methods and assumptions were used to estimate the fair value of each classes of financial instrument. There are no significant concentrations of credit risk. CASH, ACCOUNTS RECEIVABLE, ACCOUNTS PAYABLE, SHORT TERM DEBT INTEREST RATE RISK The carrying amount is the fair value for each of these classes of financial instrument.

The balance of the borrowings are commercial bills taken out on a floating rate basis. INVESTMENTS As at 30 June 2001, the Group had interest rate swap agreements outstanding with the ANZ Banking Group (New Zealand) Limited The fair value of listed investments is estimated based on the quoted market prices at balance date.The fair value of unlisted and the Bank of New Zealand Limited.The total notional principal amount was $76,000,000.The agreement effectively changes the investments is their carrying value. Group’s interest rate exposure on the floating rate to a series of fixed rates ranging from 6.04% to 7.60% per annum. INTEREST RATE SWAPS The Group from time to time utilises forward rate agreements and interest rate swaps to manage interest rate exposures for future The fair value of these instruments is estimated based on the valuations provided by the Groups bankers.The carrying value of periods. interest rate swaps represents net interest accrued and is contained within Advances and Prepayments in the Statements of FIXED RATE AGREEMENT Financial Position. Amount Maturity Rate TERM LIABILITIES $4.0 million 11.03.02 7.40% The carrying value is the fair value due to the borrowings being on floating interest rates. $3.0 million 10.03.03 6.04% $5.0 million 03.04.03 6.08% CREDIT FACILITIES $4.0 million 10.10.03 6.16% The Group has a total bank overdraft facility of $500,000 (2000: $500,000). $7.0 million 10.03.04 7.60% $10.0 million 05.04.04 6.18% 23:SEGMENTAL REPORTING $3.0 million 11.10.04 6.29% The Company operates in one industry and geographic segment, that being the facilitating of export and import activities through $5.0 million 10.03.05 7.05% the Port of Tauranga. $5.0 million 10.09.05 7.12% $5.0 million 11.03.06 6.86% 24:EVENTS SUBSEQUENT TO BALANCE DATE $5.0 million 11.09.06 7.11% Directors have announced that the Company intends to return to shareholders, on a pro rata basis, surplus capital of $67 million INTEREST RATE AGREEMENT and to cancel, in the process, one in every eight shares held. The return of capital is subject to receiving a favourable binding ruling Amount Maturity Cap Floor from the Inland Revenue Department confirming that it will be tax free, and High Court approval of the arrangement. $10.0 million 31.05.02 8.25% 7.37% The purpose of the capital reduction is to optimise the financial structure of the Company and to thereby maximise the return on funds employed in the business. After careful analysis Directors had decided that returning surplus capital now was in the best FIXED FORWARD RATE AGREEMENT interests of all shareholders and would allow the Company to improve its return on shareholder’s equity for the future. The Amount Commencing Maturity Rate Company’s dividend distribution policy would remain the same after the capital reduction. $10.0 million 17.09.01 17.12.01 5.72% The Company will be applying to the High Court for approval to return $67 million to shareholders by the cancellation of one in $10.0 million 17.12.01 18.03.02 5.84% every eight shares held by each shareholder in the Company, and the payment to that shareholder of $7.00 for each share $10.0 million 18.03.02 18.06.02 6.02% cancelled. This will give rise to the cancellation of approximately 9.6 million shares leaving approximately 66.9 million shares on The interest rate on the bank overdraft is currently set at 8.45%. issue at the completion of the transaction. The Company have targeted to complete this process including shareholder Cash at bank, receivables, advances and investments are not considered by the Company to be interest rate sensitive. confirmation as quickly as possible dependent upon the favourable outcome of the binding ruling process.

40 ANNUAL REPORT 2001 ANNUAL REPORT 2001 41 financial and operational security holding statistics five year summary AS AT 29 AUGUST 2001 FOR THE YEAR ENDED 30 JUNE 2001

FINANCIAL STOCK EXCHANGE LISTING Year Year Year Year Year The Company’s ordinary shares are listed on the New Zealand Stock Exchange. 2001 2000 1999 1998 1997 $000 $000 $000 $000 $000 TWENTY LARGEST SECURITY HOLDERS Shares % Revenue 76,686 69,866 52,888 46,203 44,688 Held EBITD 45,934 41,060 31,497 27,532 27,149 Profit after income tax Quayside Securities Limited 42,107,164 55.06 - Reported 22,412 19,650 18,095 11,653 12,219 ANZ Nominees Limited - A/c NZCSD 15,301,309 20.01 - Normalised 20,890* 19,650 15,491* 11,653 12,219 Rotorua Energy Charitable Trust 3,824,813 5.00 Dividends paid QBE Insurance (International) Limited 1,876,200 2.45 - Ordinary 18,355** 16,805 13,745 9,932 8,411 Citibank Nominees (New Zealand) Limited - A/c NZCSD 430,491 0.56 - Special - 12,223 15,271 - - Accident Rehabilitation and Compensation Insurance Corporation - A/c NZCSD 354,000 0.46 Total equity 273,808 258,157 268,567 113,458 112,061 Lilian Valder 200,000 0.26 Net interest bearing debt 75,658 75,126 65,492 43,678 42,507 MFL Mutual Fund Limited - NZCSD 176,870 0.23 Total assets 362,101 354,888 350,735 180,127 167,969 Guardian Trust Investment Nominees (RWT) Limited - A/c NZCSD 159,442 0.20 Interest cover (times) 7.8 8.4 8.4 6.7 6.3 Tea Custodians Limited - NZ Mid Cap Index Fund - A/c NZCSD 157,939 0.20 Shareholders’ equity (%) 75.6 72.7 76.6 63.0 66.7 Dorothy Ann McKenzie & Fraser Grant McKenzie 103,461 0.13 Return on equity (%) 8.4 7.5 6.7 10.3 11.1 Howard Cedric Zingel & Lynn Landmark Zingel 100,600 0.13 Return on assets (%) 10.7 9.8 8.1 12.7 13.0 Lloyd James Christie 86,190 0.11 Share price ($) 6.80 5.00 5.50 2.70 3.38 Peter John Trapski & Richard Allan Cooper 84,600 0.11 Market capitalisation 519,948 381,904 419,963 206,450 258,440 Tea Custodians Limited No 2 Account 83,607 0.10 Earnings per share (cents) 29.3 25.7 20.3 15.3 16.0 Philip Pensabene 75,000 0.09 Dividends per share John Axford Kenneth Commons 70,000 0.09 - Ordinary (cents) 24.0** 22.0 18.0 13.0 11.0 Andrew Sheppard Carter 65,500 0.08 - Special (cents) - 16.0 20.0 - - NZ Permanent Trustees Ltd - O/A NMFM Super Mid Cap Fund - NZCSD 57,293 0.07 Net asset backing per share ($) 3.58 3.38 3.52 1.49 1.47 Port of Tauranga Trustee Company Limited - staff share scheme 57,100 0.07 65,371,579 85.41 * Excludes capital gain on sale of land ** The Board approved a final dividend (of 15 cents per share $11.469M) after year end payable on 2 November 2001. SPREAD OF SECURITY HOLDERS Number Total % OPERATIONAL of Holders Shares Year Year Year Year Year Held 2001 2000 1999 1998 1997 100 - 4,999 3,310 5,203,819 6.81 Cargo throughput (000’s tonnes) 10,248 9,737 8,499 8,170 8,698 5,000 - 9,999 449 2,652,447 3.47 Containers (TEUs) 286,806 235,905 112,141 93,500 77,100 10,000 - 49,999 212 2,964,215 3.88 Cargo ship departures 1,156 1,076 970 1,006 1,090 50,000 - 99,999 10 638,390 0.83 Berth occupancy (%) 31 28 27 28 34 100,000 - 499,999 3 404,061 0.53 Total cargo ship days in port 1,740 1,540 1,482 1,553 1,853 500,000 and over 4 64,594,780 84.48 Turn-around time per cargo ship (days) 1.5 1.4 1.5 1.6 1.7 3,988 76,457,712 100.00 Cargo tonnes per ship 8,865 9,049 8,762 8,041 7,980 Average cargo ship gross registered tonnage (GRT) 16,153 15,429 15,379 14,146 12,806 Average cargo ship length overall (metres) 163 162 163 157 149 Number of employees 129 126 115 128 123

42 ANNUAL REPORT 2001 ANNUAL REPORT 2001 43 security holding statistics FOR THE YEAR ENDED 30 JUNE 2001 directory

SECURITY HOLDING STATISTICS The following are registered by the Company as at 29 August 2001 as Substantial Security Holders in the Company, having declared the following relevant interest in voting securities in terms of section 26(1) of the Securities Amendment Act 1988. DIRECTORS

F G McKenzie MNZM > Chairman Securities % A W Capamagian Held E A Craig

Quayside Securities Limited 42,107,164 55.06 J M Hughes Infratil Limited* 15,284,240 19.99 H R L Morrison Morrison & Co Infrastructure Management Limited* 15,284,240 19.99 J S Parker H M Titter CMG The total number of voting securities of the Company on issue at 29 August 2001 was 76,457,712 ordinary shares of $1.00 each fully paid. EXECUTIVE * These interests relate to the same parcel of shares held by Infratil Limited. J I Mayson > Chief Executive S Bolt > Manager Container Terminal STATEMENT OF DIRECTORS’ INTERESTS C J Boocock > Chief Financial Officer T H James > Corporate Services Manager HELD BY G J Marshall > Commercial Manager BENEFICIALLY HELD ASSOCIATED PERSONS A P Reynish > Property Manager 30.06.01 30.06.00 30.06.01 30.06.00 AUDITORS

A W Capamagian 5,000 5,000 - - PricewaterhouseCoopers E A Craig 12,000 12,000 - - J M Hughes - - - - BANKERS F G McKenzie 103,461 103,461 - - Bank of New Zealand H R L Morrison - - - - ANZ Banking Group (New Zealand) Limited J S Parker 10,000 10,000 3,400 3,400 H M Titter 10,000 10,000 - - SHARE REGISTRY

Computershare Registry Services Limited Private Bag 92119 Auckland 1020 Telephone > 09 488 8700 Facsimile > 09 488 8787

SOLICITORS

Holland Beckett Maltby Tauranga

REGISTERED OFFICE

Salisbury Avenue Mount Maunganui 3002 Post Bag 1 Mount Maunganui 3030 New Zealand Telephone > 07 575 1899 Facsimile > 07 575 1800 Internet > http://www.port-tauranga.co.nz 44 ANNUAL REPORT 2001 Email > [email protected]