Port of Geelong
| AIX interest in Port of Geelong: | 35.0% |
The Port of Geelong (POG) is a bulk seaport located in western Victoria. The port predominantly processes fertiliser, steel, timber, forestry and petroleum products. The City of Geelong is home to one of the two Australian Shell oil refineries, as well as the Midway woodchip mill. The port is also well located for several fertiliser manufacturers.
POG is wholly owned by the Port of Geelong Unit Trust (the Unit Trust), the vehicle through which AIX and its co-investors hold their interest. POG is operated by a subsidiary of Asciano Limited (formerly Toll Holdings), which also holds a minority ownership interest via the Unit Trust. POG remits to the Unit Trust a monthly base rental fee, turnover fee and profit share.
Performance highlights
In the year to 30 June 2008, the Unit Trust received total fees of $9.9 million, an increase of 18.3 percent on the previous financial year. POG handled a total of 9.9 million tonnes of cargo during the year, a decrease of 3.4 percent on the previous financial year.
Fertiliser had a strong year, with throughput increasing 30.9 percent over the previous year as drought conditions in south-eastern Australia eased. The higher movement of fertiliser further benefited POG with increased revenues from the shore cranes required to load the fertiliser onto vessels.
In contrast, throughput of crude oil fell 12.0 percent compared to the previous year due to higher global oil prices reducing local demand.
Despite the negative volume growth, revenue grew strongly over the year, increasing by 24.3 percent, with higher prices per tonne being earned across each of the major cargo categories.
Performance outlook
The outlook for the new financial year, is positive, with further easing of drought conditions expected to sustain the current volume of fertiliser, soybean and other dry good volumes. This is expected to offset ongoing weakness in crude oil volumes.
Management is currently considering several growth opportunities, including an extension of the current wharf facilities and development of further storage capacity for hire by both importers and exporters.
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Port of Geelong
Financial and operational performance
| 30 June year end | 2004 | 2005 | 2006 | 2007 | 2008 | CAGR* 04/08 |
| Throughput (tonnes m) | 10.2 | 10.5 | 9.8 | 10.3 | 9.9 | (0.6)% |
| Port Revenue ($m) | 18.8 | 20.2 | 21.4 | 22.7 | 28.2 | 10.7% |
| Trust EBITDA ($m) (1) | 7.5 | 7.5 | 7.9 | 8.2 | 9.6 | 6.4% |
* CAGR: Compound Annual Growth Rate
(1) Trust EBITDA is fees received by the Port of Geelong Unit Trust net of port operator fees and the Trust's own operating expenses.