Port of Portland
| AIX interest in Port of Portland: | 50.0% |
| Other HFM interest through Port of Portland Holdings: | 50.0% |
Port of Portland (the Port) is a deep-water seaport located in Portland in south-western Victoria. The Port handles diversified bulk commodities, including mineral sands, forestry products, aluminium, grain, fertiliser and livestock.
Performance highlights 2011
Throughput at the Port was up 33.7 percent on the previous year, with easing drought conditions resulting in strong grain and fertiliser volumes. Woodchip volumes were also marginally above the prior year. Log exports performed strongly during the year with volumes approximately 60 percent higher compared to the prior year.
Revenue exceeded the prior corresponding period by 43.5 percent due to higher volumes, lease payment arrangements with Gunns, which commissioned its hardwood chip facility in November 2011 and a favourable shipping mix, with high-value commodities such as mineral sands and grain outperforming expectations. The strong performance of a number of trades other than woodchips during the year demonstrates the benefits of the strategy to diversify the Port's commodity base.
As well as the Gunns hardwood chip facility, the GrainCorp hardwood chip facility upgrade was commissioned during the year. Both facilities have begun to receive woodchip deliveries. These facilities will provide the infrastructure required to store and handle the increasing hardwood chip volumes expected to flow from the Green Triangle region in the short to medium term.
Scott Paterson departed the Port as CEO on 30 September 2010, after successfully leading the Port for nearly four years through a challenging period including the global financial crisis. Jim Cooper was appointed as the new CEO from 1 October 2010 and brings significant commercial expertise and knowledge of the Port to the role. Jim has been with the Port for over five years as General Manager - Commercial.
Performance outlook
The trade outlook remains positive for the Port over the medium term. With the new hardwood chip facilities now in operation, the Port is well positioned to benefit from the significant ramp up in hardwood chip volumes expected over the medium term. Although demand for hardwood chips from the Japanese market is likely to remain subdued in the near term, due in part to the recent earthquake and tsunami, rising demand from the Chinese market is expected to increase competition for woodchips from the Green Triangle region and drive export volumes for the Port.
The outlook for mineral sands remains positive with strong volumes expected to continue as Iluka Resources seeks to meet rising global demand for its products. Grain volumes are also expected to improve as drought conditions continue to ease coupled with strong global demand for grain with Asia and the Middle East being the primary export markets for the Port. The Port is also well-positioned to benefit from new wind farm developments scheduled for development in the south-western region of Victoria.
Port of Portland
Financial and operational performance
| 30 June year end | 2007 | 2008 | 2009 | 2010 | 2011 | CAGR* |
| Throughput (tonnes m) | 3.0 | 3.3 | 2.9 | 3.0 | 4.0 | 7.0% |
| Revenue ($m) | 17.6 | 23.6 | 22.0 | 23.3 | 33.5 | 17.5% |
| EBITDA ($m) | 8.9 | 11.2 | 10.5(1) | 13.3 | 21.9 | 25.3% |
* CAGR: Compound Annual Growth Rate.
(1) 2009 EBITDA normalised to remove $2.9 million of one-off non-cash expenses.
For more information please visit the Port of Portland website.