POT Annual Meeting: Chair & Chief Executive’s Address

PORT OF TAURANGA LIMITED ANNUAL MEETING 2021
Friday 29 October 2021, at 1 pm
Chair – David Pilkington
I will now present a summary of the Group’s performance for the year to June 2021.
As New Zealand’s largest port, Port of Tauranga has had a vital role to play in keeping cargo
moving throughout the global disruption and local upheavals caused by the Covid-19
pandemic. Erratic consumer demand, interrupted production cycles and scarce shipping
availability have all contributed. Closer to home, some of our peers have had unique
challenges and the whole sector has experienced an acute labour shortage driven by a
multitude of factors.
I’m pleased to report that the Company has withstood these pressures very well, achieving an
outstanding result despite the well-documented challenges. I cannot overstate it when I say
our people and our service providers have done a truly incredible job.
Our Subsidiary and Associate Companies had a stellar year, delivering a 46% increase in
earnings in the face of rising costs and an uncertain outlook.
Group Net Profit After Tax increased to $102.4 million, up 15.4% from an adjusted $88.7
million the previous year.
Parent revenue increased 8.9% to $323.5 million. Marine revenue decreased due to a 13.7%
drop in ship visits, including more than a hundred missing cruise ship visits due to the
pandemic.
This was made up by increased revenue from log and container storage. Temporary
surcharges for long-stay containers were introduced to discourage inefficient cargo flows and
relieve cargo congestion, and this helped recover some of the additional labour, rail and other
congestion-related costs incurred. Operating expenses increased 15.3% to $161.1 million for
the year.
The Board declared a final interim dividend of 7.5 cents per share to bring the total dividend
to 13.5 cents per share, up from 12.4 cents per share last year.

2
As you will be aware, last year we suspended the special dividend scheme in favour of
accelerating capital expenditure to build capacity.
Unfortunately our progress in this regard has been frustratingly slow due to the red tape
involved in the resource consenting process.
We require Resource Consent for our proposed Stella Passage Project, which has been
outlined in detail in the Regional Coastal Environment Plan since 1991 and involves extending
berths to the south of the existing wharves.
The $68.5 million first stage at the container terminal will create an estimated 368 jobs through
the construction phase, and more than 81 permanent jobs after completion.
This is a project of national significance, in that it will bring urgently needed capacity and
resilience to New Zealand’s supply chain and go a long way to reduce the pressure on Ports
of Auckland congestion and operating issues.
No Government funding is being sought for this project, however in the hope that we might
expedite the resource consenting process, we applied last year for consideration under the
Government’s “shovel ready” and “fast track” consenting programmes aimed at helping the
economy recover from the Covid-19 pandemic.
Unfortunately we were turned down for both. It was suggested by Government Ministers that
we seek direct referral to the Environment Court as a means of accelerating the process. This
has recently been agreed by the Regional Council consenting authority and we now wait –
once more – for a Court date.
Throughout, we have had extensive dialogue with local iwi and hapu and we are confident we
can avoid or mitigate any potential cultural or environmental impacts from the development.
This project is simply essential if New Zealand exporters are to preserve access to
international markets in future.
It is particularly pertinent that the recently released draft 30 year Infrastructure Strategy from
the NZ Infrastructure Commission noted that approval for key infrastructure projects was
subject to more widespread appeal than virtually all other OECD countries. I urge the
Government in the proposed overhaul of the RMA legislation to address this.
In the meantime, we are pursuing our plans to automate container storage at the terminal to
increase our capacity within the current land footprint.
Our automation project will utilise well-proven technology that has been in use for many years
at some of the world’s most efficient ports.

3
The future freight handling capacity of inland freight hubs will also help us increase our
capacity. Our joint venture inland port with Tainui Group Holdings at Ruakura is under
development, with opening scheduled for the middle of 2022.
Our cornerstone shareholder, Quayside Holdings, is also developing the 148-hectare
Rangiuru Business Park less than half an hour’s drive from the port, at the junction of the
Eastern, Western and Southern Bay of Plenty.
It will be an important addition to the region’s supply chain infrastructure.
The Government has indicated that it plans to address the Upper North Island supply chain
as part of a national freight strategy. The Infrastructure Commission has listed this as a priority
in its draft infrastructure strategy provided to the Minister a couple of weeks ago.
The Government has commissioned another report on the future location of Ports of Auckland
in its current location – I believe the 25
th
study on the topic – and the Minister has said there
will be a decision by the 2023 election.
It has long been our view that a container port can keep operating on a smaller Auckland site
while cargo growth can be absorbed by both Northport and Port of Tauranga.
Northport has outlined its own vision for growth involving dry dock facilities and a container
terminal linked by rail to Auckland.
We farewelled our long-serving Chief Executive, Mark Cairns, at the end of June. Mark spent
16 years at the helm of Port of Tauranga and during his tenure we saw cargo volumes double
and container volumes treble.
Port of Tauranga, under Mark’s guidance, grew from a regional bulk export port to New
Zealand’s international cargo hub and most successful port. He built strong relationships with
customers and suppliers, achieving the highest port productivity rates in Australasia while
maintaining an industry-leading safety record.
Mark also built up a strong team and the Board was delighted to be able to appoint an internal
candidate as Mark’s successor. Leonard has been with us for nearly eight years as
Commercial Manager and Chief Operating Officer. Before that, he worked at KiwiRail, Carter
Holt Harvey and Mainfreight.
Together with long-serving and new members of the Senior Management Team, Leonard will
continue Port of Tauranga’s future focus, and preserve our strong relationships with customers
and suppliers.
I will now hand over to Leonard now to take us through the operational highlights of the year.

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PORT OF TAURANGA LIMITED ANNUAL MEETING 2021
Friday 29 October 2021, at 1 pm
Chief Executive – Leonard Sampson
Thank you, David, and kia ora koutou.
As David has outlined, the 2021 financial year was a challenging one thanks to our co-
stars Covid-19 and congestion.
New Zealand’s evolving response to the Covid-19 pandemic continues to have
significant impact on our operations. For more than a year, frontline port workers have
had to be tested on a weekly or fortnightly basis depending on their role. The local
District Health Board has testing facilities on site, and we are required to monitor
compliance with the testing regime for our 80 or so employees subject to the Vaccination
Order.
Whilst vaccinations were made available in March, they were not made mandatory until
July for frontline workers. From 30 September, all of our front-line staff have now
received at least one dose and will be fully vaccinated by mid-November.
Port of Tauranga has always strongly encouraged vaccination. We have provided
extensive health information, hosted question and answer sessions with local health
experts, and facilitated vaccinations on site.
Vaccination is a useful tool in the battle to keep our people, their families, and the
community safe from Covid-19. We will also continue to use the other measures we
have relied upon for the past 18 months including frequent cleaning, physical distancing
from ship’s crew, and the use of personal protective equipment. This is in addition to
the regular testing requirements.

2
The pandemic’s impact on the international supply chain has resulted in extensive
shipping delays, service cancellations, scarcity of supply and volume volatility. This has
led to congestion in the container terminal and at our MetroPort facility in Auckland. This
situation was at times exacerbated by operational challenges at Ports of Auckland,
particularly in the first half of the financial year.
We saw 106 fewer container vessel visits between September 2020 and June 2021.
However, the average cargo exchange per container vessel increased 21.7% due to the
reduced vessel frequency and shippers maximising available capacity.
We had near-record surges of import container volumes between October and February
with not enough rail capacity to handle them, resulting in week-long delays in
transferring import containers by rail to Auckland.
KiwiRail provided us additional trains from May, which has helped ease the pressure.
However, container vessels are still arriving off window and taking longer to load and
unload. To illustrate, since October 2020 we have seen a 51% increase in static
container volume in our Sulphur Point terminal – that’s the equivalent of around 5,000
additional twenty foot containers sitting in the terminal at any point in time.
It’s simply not efficient to run a container terminal at more than 100% capacity and as a
result productivity has suffered, with the average crane rate dropping from 35.8 to 29.7
moves per hour. Costs have risen, including straddle carrier diesel consumption and
the related carbon emissions.
That being said, our overriding message has been, that safety should not be sacrificed
in the pursuit of speed or productivity.
Unfortunately, there appears to be no immediate fix to the problems in the global supply
chain.
In the short-term, a tight labour supply, the unreliability of shipping schedules and fixed
rail capacity constrain our ability to deal with large volume surges. The Delta outbreak
in Auckland has also impacted wait times at the MetroPort facility, due to Auckland
based staff being required to isolate from time to time.

3
As David mentioned, our joint venture inland port with Tainui Group Holdings will open
at Ruakura in the middle of 2022, improving both cargo capacity and connectivity
between the Auckland, Waikato, and Bay of Plenty. Earthworks are well under way on
the Superhub’s roads, supporting infrastructure and the inland port itself.
The first stage covers around nine hectares, including two 800-metre rail sidings, with
future stages growing the facility to around 30 hectares.
Longer-term, our berth extension project and terminal automation will help us more than
double container capacity at the Tauranga Container Terminal.
Globally, we can see a looming influx of new vessels into the shipping fleet, with near
record order books in shipyards to address the current shortage in capacity. But that,
again, is a longer-term fix and no comfort for shippers currently experiencing freight cost
increases.
We must remain as competitive and attractive as possible to ensure shipping lines
continue to call in New Zealand and avoid further reductions in capacity. Our economy
depends on it.
Turning to cargo volume trends, the container terminal congestion inevitably impacted
container volumes, which reduced by 4.1% to 1.2 million TEUs.
However, total overall trade increased 3.8% compared with the previous year, growing
to 25.7 million tonnes.
Imports increased 4.0% to 9.4 million tonnes, while exports increased 3.5% to 16.3
million tonnes.
Log export volumes bounced back strongly from the halt to trade during the 2020
lockdown, increasing 14.3% to 6.3 million tonnes.
Direct dairy exports increased for the year up 2.1%.
Kiwifruit exports increased 10.1% in volume with a mixture of both refrigerated vessels
and container volumes. Significant growth is expected to continue for the next few
years.

4
Bulk cargoes were strong for the year with oil product imports increasing 11.6% and
cement imports increasing 42.4% in volume, reflecting the strength in the local
economy.
Amidst the chaos of the past year, we have continued our efforts to improve air and
water quality in and around the port, particularly in dust management for a number of
the bulk cargoes.
Fine dust concentrations have reduced by 16.5% in the past year due to increased
housekeeping and improved cargo management. Since 2017, our wharf sweeping has
increased five-fold and we have introduced technologies such as water misting.
After consulting our stakeholders, we have decided to insist that all methyl bromide
fumigations of export log stacks utilise recapture technology. This is over and above
any regional or national requirements. In addition, the Environmental Protection
Authority has introduced new stricter requirements for buffer zones around fumigation
activity.
We expect methyl bromide usage at the port to continue to decrease with a second log
de-barker being commissioned by forestry exporters in 2022. De-barking logs off site
greatly reduces the amount of pre-shipment fumigation required and avoids log debris
being deposited on the wharves during handling.
In terms of water quality, we continue to comply with all the conditions of our stormwater
resource consents, benefiting from increased sweeping and use of bark screen
chambers. We are also continuing to explore ways to further improve water quality.
Unfortunately, our decarbonisation efforts were thwarted by the container yard
congestion, and total carbon emissions increased 7%. Diesel use increased by nearly
a third, due to straddle carriers having to shift containers around and travel further within
the terminal. Electricity use also increased with refrigerated containers staying longer
than usual.
The good news is that we managed to further reduce the amount of waste going to
landfill with increased recycling and reuse of waste products helping us to halve the
volumes again.

5
The global trend to bigger ships offers significant decarbonisation benefits. By far the
largest proportion of carbon emissions in New Zealand’s container supply chain relates
to the “blue water” or ocean-going component of the cargo journey.
Port of Tauranga is the only New Zealand port able to handle larger container vessels.
We regularly receive vessels with capacity of around 9,500 TEUs.
To give you an example, the carbon footprint for a 20 foot, import container from
Shanghai to Auckland via Tauranga on a ship of that size is around 20% smaller than
the same container shipped direct to Auckland on a 4,500 TEU vessel. This is true even
when you take into account the rail transfer between Tauranga and Auckland.
Our clear opportunity to further reduce carbon emissions lies with our terminal
development. Electric auto stacking cranes have significantly fewer emissions than a
traditional diesel straddle operation. They will also help us improve safety and reduce
operating costs.
The technology will be introduced in blocks and timed to match container growth.
We are very happy with the performance of our first hybrid straddle carriers, which
arrived in early 2020. They are reliable, comfortable for operators, and significantly
more fuel efficient.
In what has been a challenging year for our people, our employee wellbeing programme,
ShipShape, has been helpful in supporting our people throughout the challenges of the
past year, providing tools to support mental, physical and financial health.
In recognition of the outstanding commitment of our team over the past year, we were
pleased to acknowledge our employees with a bonus 2021 “share issue”.
In the past few months, we have taken the opportunity to review our Purpose, Vision
and Values statements, and ensure that our business and sustainability strategies are
closely aligned. This framework will ensure we focus our attention, effort and resources
in the right places, and that our focus reflects the priorities of our internal and external
stakeholders.
Our Purpose is connecting New Zealand and the world. Our aspirations for 2030 are to
drive national prosperity, improve community wellbeing, protect our natural
environment, respect mana whenua, nurture our people, provide superior customer

6
service and deliver long-term value. For those of you interested, we expand on these
themes in our 2021 Integrated Annual Report.
The outlook for the financial year remains uncertain. We expect ongoing challenges
from the lack of schedule reliability, constrained shipping capacity, and a worsening of
labour shortages. Covid-19 precautions will continue to impact efficiency and costs as
we prioritise the health and safety of our team members, their whanau and the
community.
We are confident that we are well-positioned to meet these challenges. Our diversity of
cargoes and income streams – both at Tauranga and from the wider group – give us
resilience, and we gain certainty from our long-term freight agreements with major
customers such as, Oji Fibre Solutions, Kotahi and Zespri.
Our balance sheet remains strong and we have secured debt at favourable rates.
In the first quarter, total trade increased 6.9% to 6.8 million tonnes. Container volumes
have increased 8.1% to 311,000 TEUs, reflecting the fact that some cargo shipped in
the first quarter would have normally been shipped earlier in the year. Direct dairy
exports increased 6.7% in volume, and kiwifruit exports were also strong, up 7.1% on
the first quarter.
Log export volumes have increased 2.4% to 1.6 million tonnes.
Container terminal productivity has improved significantly over the first quarter, although
there are still delays in transferring some import cargo to Auckland.
While we are still experiencing major disruption to the international supply chain, we
have managed to process more vessels and larger volumes of cargo compared with the
same quarter last year.
We still do not know the effects of the extended lockdown in Auckland, and the labour
shortages being experienced across many industries.
However, based on the first quarter’s results, and notwithstanding any significant
change to market conditions, we expect full-year earnings to be in the range of $103
million to $110 million.

7
Sadly, we can’t offer you a tour of your port today, however we have increased the
number of port tours throughout the year with more than 2,500 people having visited the
Port this year. Covid precautions allowing, we will offer port tours again in January and
I hope you can join us then.
Finally, I would like to thank you, our shareholders, for your continued support. I would
also like to thank our customers and business partners, who have been incredibly
patient and cooperative throughout the challenges of the past 18 months.
Together with our dedicated team, we have continued to ensure New Zealand can
remain connected with the world.
Nga mihi nui kia koutou katoa.

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Port of Tauranga Limited
Annual Meeting
29 October 2021

David Pilkington
Chair

Port of Tauranga Limited
Annual Meeting
29 October 2021

Subsidiaries & Associates
Net Profit After Tax up 46.0%
$16,391
$11,885
$12,728
$18,581
$0
$5,000
$10,000
$15,000
$20,000
201820192020 restated2021
$000s

Group Net Profit After Tax up 15.4%
$83,441
$94,273
$100,577
$88,679
$102,375
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
$100,000
$110,000
$120,000
2017201820192020 restated2021
$000s

Ordinary Dividends maintained at 90% of
Net Profit After Tax
12.7
13.3
12.4
13.5
0
2
4
6
8
10
12
14
2018201920202021
Ordinary
Special
Cents per share

Parent Capital Expenditure 2018-2023
$16,788
$40,073
$38,228
$23,796
$60,000
$50,000
$23,000
$0
$20,000
$40,000
$60,000
$80,000
$100,000
20182019202020212022F2023F
$000s
Terminal Southern Berth Extension

Regional Coastal Environment Plan (2003)

Resource Consent Application
•Proposed development
consistent with Regional
Coastal Environment Plan
•Restricted discretionary
activity
•All proposed development
within the existing port
footprint.

Critical New Zealand Infrastructure
•First stage: 220 metre extension to container berths
•Design completed 2019 and early contractor engagement 2020
•Shovel Ready declined August 2020
•Fast Track application declined April 2021
•Ongoing consultation

Terminal Automation
•Progressing first stage of container
terminal automation
•Currently seeking proposals for Auto
Stacking Cranes ( ASC ) from providers
•Expect vendor selection Q1 2022
•Well established technology used globally.

Ruakura Inland Port

Rangiuru Business Park

24 Previous Upper North Island Port Studies

Northport – Vision for Growth

Our Senior Management Team

Leonard Sampson
Chief Executive

Lockdown, April 2020

Costs of Congestion
106 fewer container vessels September 2020 to June 2021 vs PCP
SepOctNovDecJanFebMarAprMayJune
Vessel Visits 19 /20
55636662585455696759
Vessel Visits 20 /21
49574453494349495752
Average Exchange 19/201064114610381115105110851102872999991
Average Exchange 20/21
1139130313881350124612881354123413081131
0
200
400
600
800
1000
1200
1400
1600
0
10
20
30
40
50
60
70
80
Average exchange ctrs
Vessel Visits
Tauranga Container Terminal Vessel Calls
Vessel Visits 19 /20Vessel Visits 20 /21Average Exchange 19/20Average Exchange 20/21

Costs of Congestion
51% increase in average static volume since 1 October 2020

Source – FIGS, Ministry of Transport
0
10
20
30
40
50
60
70
80
90
100
AucklandLytteltonNapierOtagoTaurangaWellington
New Zealand Port Ship Rate

Carrier Consolidation & Increasing Orderbook

Container Volumes down 4.1%
1,182,147
1,233,177
1,251,741
1,200,831
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
1,100,000
1,200,000
1,300,000
1,400,000
2018201920202021
TEUs

Total Trade up 3.8%
24,458
26,946
24,808
25,738
0
5,000
10,000
15,000
20,000
25,000
30,000
2018201920202021
Tonnes 000s

Log Exports up 14.3%
6,276
7,063
5,544
6,339
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
2018201920202021
JAS 000s

Direct Dairy Exports up 2.1%
2,039
2,110
2,076
2,120
0
500
1,000
1,500
2,000
2018201920202021
Tonnes 000s

Direct Kiwifruit Exports up 11.1%
1,303
1,473
1,465
1,629
0
250
500
750
1,000
1,250
1,500
1,750
2018201920202021
m
3
000s

Bulk Cargo up 13.1%
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
20172018201920202021
Tonnes
Break Bulk Tonnage
LOGSOIL PRODUCTSPROTEINS & FEEDSKIWIFRUIT
OTHER WOOD PRODUCTSFERTILISERSSTEELGRAIN
COALALL OTHER GOODS

Dust Suppression / Visual Amenity
2017
2020

Methyl Bromide Recapture

Debarking
•Reduces need for
fumigation
•Second debarker being
commissioned by industry
in 2022.

Bigger Ships = Lower Carbon Supply Chain
20% fewer emissions
29% fewer emissions

Electric Cars - Hybrid Straddles

Outlook 2022
•Port congestion and supply chain
disruption expected to continue
•Labour shortages a growing problem
for the sector
•Covid-19 precautions continue to
impact efficiency and costs.

First Quarter FY22
•6.9% increase in total trade
•8.1% increase in containers
•6.7% increase in direct dairy exports
•7.1% increase in direct kiwifruit exports
•2.4% increase in log exports.

THANK YOU

Port of Tauranga Limited
Annual Meeting
29 October 2021

Resolution 1 (a):
Re-election of Ms Julia Hoare

Resolution 1 (b):
Re-election of Ms Alison Andrew

Resolution 1 (c):
Re-election of Sir Robert McLeod

Resolution 2:
Increase in Directors’ Remuneration

Resolution 3:
Remuneration of Auditor

1(a):
Julia Hoare
1(b):
Alison Andrew
1(c):
Sir Robert
McLeod
2:
Directors’
remuneration
3:
Auditors’
remuneration
Proxy votes already cast:
For57,017,99363,749,87557,968,73163,125,51163,928,572
Against6,916,560184,6785,961,592665,8064,260
Abstain
1
37,22537,22545,88056,75057,159
Discretionary proxy votes not
yet cast:
2
4,415,1834,415,1834,410,7583,731,4484,396,970
Total Available Votes:
3
68,349,73668,349,73668,341,08167,522,76568,329,802
1 Abstain votes not counted in total available votes
2 Votes held by the Chairman and other proxies
3 This represents circa 10% of the total issued shares of 680,581,230
Proxy Totals

Port of Tauranga Limited
Annual Meeting
29 October 2021

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29 October 2021
Port of Tauranga Sees Strong Growth in First Quarter
Despite Covid Disruption
Port of Tauranga, New Zealand’s largest port, today reported a 6.9% increase in total trade to
6.8 million tonnes in the first quarter of the 2022 financial year.
Exports increased 5.3% to 4.3 million tonnes and imports increased 9.8% to 2.5 million tonnes.
Container volumes increased 8.1% to 310,997 TEUs
1
.
Log export volumes increased 2.4% to 1.6 million tonnes. Direct dairy exports increased 6.7%
in volume and kiwifruit exports were also strong, up 7.1% on the first quarter of last financial
year.
Port of Tauranga Chief Executive, Leonard Sampson, told the Company’s Annual Meeting of
Shareholders today that the results demonstrated the impact of congestion over the last 12
months, with some cargo being shipped in the first quarter that would usually have been shipped
earlier.
Container terminal productivity has improved significantly over the first quarter, although there
are still delays in transferring some import cargo to Auckland, he said.
“While we are still experiencing major disruption to the international supply chain, with the
majority of container ships arriving off-window, we have been able to process more vessels and
larger volumes of cargo compared with the same quarter last year,” he said. Ship visits
increased 7.5% to 360.
“The near future remains uncertain due to the ongoing impacts of the Covid-19 pandemic,
including the effects of the extended lockdown in Auckland and labour shortages being
experienced across multiple industries,” said Mr Sampson.
1
TEUs = twenty foot equivalent units, a standard measure of shipping containers

2
“Based on the first quarter’s performance, and notwithstanding any significant market
changes, we expect full year earnings to be between $103 million and $110 million.”
For more information, please contact:
Leonard Sampson
Chief Executive
Port of Tauranga Limited
Ph: (07) 572 8830
Rochelle Lockley
Communications Manager
Port of Tauranga Limited
Ph: 021 865 884