LPC-Annual-Report-2020.Pdf
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Leading The Way ANNUAL REPORT 2020 Tihei mauri ora Me mihi ki te Rūnga Rawa nāna nei ngā mea katoa. Give praise to that which is above us for all things are from that source. Ngā mate, pupu ake te mahara i o mātou hinengaro, hāere koutou kua wehe atu ki te pō, ki te okiokinga, hāere, hāere, hāere. To those passed on, memories well up in our thoughts because you have departed from here to the night, to your resting place, farewell, farewell, farewell. Ki te hunga ora, he mihi tenei ki ngā maunga tapu me ngā marae maha o Te Waipounamu huri noa i ngā tangata katoa e noho ana. To the living, greetings to the sacred mountains, marae and all the people living throughout the South Island. Kei roto i tō tātou hitori i hāere mai ō tātou tīpuna ki te whenua nei ko Horomaka. I kimihia e rātou te ao hou me te mātauranga hei oranga mo te iwi. Within our history, our ancestors came to Banks Peninsula seeking a new world and knowledge for their future wellbeing. Tae mai ki tenei rā, kei te mahi tahi te Poari me ngā kaimahi o te Kamupene Whakaraupō ki te whakatinana i ngā moemoea me ngā wawata o ngā tangata e noho ana i konei. Today, the Board and staff of Lyttelton Port Company are working together to support the visions and aspirations of all those who live here. Ko to mātau kāinga tēnei. This is our homeland. He rere ke, he tangata auaha. We are its diverse and innovative people. He angitu, he mea pai mo Te Waipounamu. Driving opportunity, enterprise and prosperity for the South Island. Kia toitū te taiao mo ake tonu atu. Building a legacy of sustainability for the environment and the future. Whakaraupō! He wāhi mo te katoa. Lyttelton Harbour! A place for everyone. From our Chair and Chief Executive Officer Leading the way The financial year 2020 was the Despite the challenge of COVID-19, This readjustment recognises that our Logs also saw a volume drop year on Cultural change is also an important Finally and most importantly, we want beginning of a transformation for we still returned a strong profit from asset value and our ability to generate year, with the trade being hit first by part of the journey for LPC. Following to acknowledge the monumental Lyttelton Port Company (LPC), operating activities of $10 million. earnings in the current environment a short decline in demand early in the a series of serious allegations made commitment of the staff of LPC. as we move from a long period of This was a pleasing result in the are out of line. It brings LPC’s value third quarter followed by the cessation by former staff and their families, This year has been an extraordinarily redevelopment into the future – a future circumstances and reflected both the back in line to reflect how much we can of felling and export operations during we have launched an independent challenging one, with COVID-19 that will deliver a sustainable profit and continued strength of Canterbury’s actually earn from our assets. the Alert Level 4 lockdown. external review of the culture at LPC creating personal and operational a fair return to our shareholders. It has exports and a good focus on cost led by Maria Dew QC. Both the Board uncertainty for everyone working at This accounting adjustment does not The year saw the retirement of Peter been a year of challenges, but we have control within the organisation. This and management are committed to the Port. The team have embraced change the fact that the Port remains Davie as CEO after 16 years leading still handled record container volumes operating profit enables us to pay a supporting the outcomes of this their roles as essential workers and a strong long-term infrastructure LPC through an eventful period in its and total export value topped $6 billion dividend to our shareholders in these review, and we expect the report in worked tirelessly to ensure that the business. This reset in value sets us history, first managing the impact of for the first time ever. difficult times. the near future. goods that are vital for Canterbury have up firmly for future growth. It sets the Christchurch earthquakes of 2010 continued to flow right through every It has been the year that has set us on Using a combination of insurance our equity at the right place to drive and 2011 and then overseeing the The review is only part of the cultural level of lockdown. Our people have the path to transforming LPC into a port proceeds and debt, LPC has invested growth in returns over the next 5 years subsequent rebuild of the Port. The change at LPC. We are focused on been adaptable and faced every new for the 21st century. Like most New in assets and capacity to develop the through bringing our asset base in line Board focused much effort in the first creating a more diverse and inclusive challenge and new way of working in a Zealand businesses, this financial year Port and create vital infrastructure to with our earnings, allowing us to make half of the year on finding a replacement workplace that is more reflective of the collaborative and positive way. has also been one of contrasts, with the support the Canterbury economy. We a strong return on our equity for our who could lead LPC through the next community we work in. This year, we impact of COVID-19 featuring strongly have delivered a rebuilt and expanded shareholder. phase of its journey. have also introduced high-performance in the second half of this year. Port, now able to strongly support the high-engagement practices as the Next year, we anticipate an operating The Board was extremely pleased to region’s economic development and beginning of a collaborative partnership We have recruited and welcomed a new and net profit after tax in line with appoint Roger Gray to the role of CEO in drive our export growth. We have many with the four unions that represent most CEO, moved to transform our business previous years and then growing over September 2019 and for him to join LPC in key projects that have been completed of the staff at LPC. plan and begun a review into culture at the next 5 years to bring a level of February of this year. Roger came from Air in the financial year or will be delivered Margaret Devlin LPC that will inform our cultural change return in line with other ports in the New Zealand with a wealth of experience This year was the last full financial year in the first half of next year. This Board Chair programme. We have seen the effects New Zealand sector. running operational businesses and a for the Board’s Audit and Risk Committee will bring to an end the large-scale of COVID-19 changing the way we strong background in high-performance Chair Brian Wood. Brian has been on redevelopment of the Port following The strength of our operating operate, impacting on the volumes that high-engagement workplaces. the Board of LPC for 9 years and has the earthquakes. environment was reflected in the we handle through the Port and having made a huge contribution to the Port continued growth in container volumes, Since February, under Roger’s a moderate financial impact However, due to COVID-19 and some during the rebuild and expansion of our growing 2% to 446,101 TEUs. At the leadership, the management team has as a result. other factors, it is going to take LPC infrastructure. Brian will be replaced by same time, total value of exports from worked on developing our 5-year plan longer to make a return on these assets. Nick Easy, currently CEO of Queensland LPC was deemed an essential service, Lyttelton grew 12.5% to $6.32 billion, Leading the Way, shifting the focus from Rail and formerly CEO of Port of Roger Gray with the majority of operations To recognise this, we have altered our despite the challenges of COVID-19. rebuild to optimisation of the assets. Melbourne. Chief Executive Officer continuing during Alert Levels 3 and 4. accounting policy and made a fair-value While it has changed our approach The impact of COVID-19 was mostly Stringent measures were put in place to readjustment of $190m to the value to many aspects of the business and The Board is now entering a phase of seen in imports. Overall import value maintain health and hygiene and more of the business, as well as a number introduced a strong focus on sustainable stronger engagement with stakeholders, dropped 19.6% to just under $4 billion, importantly keep our staff safe. of one-off write-offs (of around $8 profitability, our core purpose has with a workplan focused on upskilling with car volume and fuel volume both million). As a result, the financial remained the same: to facilitate in the ports sector and connecting with down considerably as a result of the performance for the year is an overall the sustainable growth of trade for exporters. lockdown period. loss of $154m. Canterbury. LPC is committed to playing its important role in the fabric of the Canterbury economy. 4 5 LEADING THE WAY From our Chair and Chief Executive Officer 4 Our 5-year plan 8 Charting the course 10 Keeping Canterbury moving through COVID-19 12 PROSPERITY Contents From Redevelopment to Sustainable Profitability 14 Key trade overview 16 Fishing for the future 18 Exports: From Wigram to the world 20 Imports: From Italy to Ōtautahi 22 From constraints to capacity 24 From frozen to fresh 26 From construction to completion 27 PEOPLE Our People 30 Safety 32 From ship to shore 34 From legacy to leadership 36 From Whakaraupō to Selwyn 38 Who we supported this year 40 From sea to safety 41 From whānau to kaupapa 42 PLANET From mitigation to restoration 46 Roadmap to reduction 48 Our carbon footprint 49 From plan to action 50 Protect, restore, regenerate 52 How we do things 54 FINANCIAL STATEMENTS Financial Statements 56 Notes to the Consolidated Financial Statements 64 Independent Auditor’s Report 87 Corporate Governance 90 6 7 Leading the way Our 5-year plan Our team has worked hard this year to • A new cruise berth, New Zealand’s To do this, we will ensure we are: What LPC will be in 5 years: develop our new 5-year plan Leading only purpose-built berthing facility • a safe and secure Port the Way.