South Port lifts profit forecast on strong cargo flows

The Bluff p[ort operator said after tax profit for the year to next June was likely to exceed the top end of the $3.5 million to $3.9 million range.

South Port has lifted its profit indication after strong cargo flows in the first five months of the financial year.

The company, which operates the port at Bluff, today said that after tax profit for the year to next June was likely to exceed the top end of the $3.5 million to $3.9 million range previously indicated in its annual report.

An updated indication of expected 2011 profitability would be provided when South Port issued its 2011 interim result on February 10.

For the five months to the end of November, the company's total cargo volume was 1.09 million tonnes, compared with 0.82 million tonnes a year earlier, South Port said.

Reasons for the increase included strong Chinese log demand, higher than expected fertiliser application in the region and increased imports of stock food.

Also, greater containerised cargo has been generated by the MSC Capricorn service plus the Rio Tinto Alcan-operated aluminium smelter had reverted to more normal production levels.