Shares in Port of Tauranga dropped 3 percent to a three-week low after the company said its marshalling unit lost a major log marshalling contract starting next year.
Shares in Port of Tauranga [NZX: POT], New Zealand's biggest export port, dropped 3 percent to a three-week low after the company said its marshalling unit lost a major log marshalling contract starting next year.
Quality Marshalling, New Zealand's second-largest log marshalling and scaling company, lost the log marshalling contract at Mount Maunganui and Murupara, which accounts for about 60 percent of the unit's revenue, the port company said in a statement. Port of Tauranga shares dropped 45 cents to $14.40.
Port of Tauranga acquired control of Quality Marshalling in January, on the expectation it would enable the group to further develop its customer supply chain relationships within the forestry industry, a core strategic component of its business.
Whilst the outcome of the competitive tender process was disappointing, there remain significant growth opportunities for the marshalling unit, Mark Cairns, chief executive of the port company, said in the statement.
The marshalling unit has been expected to contribute about $12.5 million annual revenue and $2.5 million profit to the port company. In the year ended June 30, the port posted a $112.1 million net profit on revenue of $244.1 million.
(BusinessDesk)
