Napier Port Holdings Ltd · NZX:NPH
Napier Port — Investor Presentation (September 2021)
16 slides from Napier Port's investor presentation, September 2021
Slide 1: Napier Port Log Supply Chain
NAPIER PORT LOG SUPPLY CHAIN September 2021
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER This presentation has been prepared by Napier Port Holdings Limited (together with Investors should be aware that certain financial data included in this presentation are Port of Napier Limited, "Napier Port"). This presentation is being provided to you on 'non-GAAP f
Slide 3: The Wall of Wood
THE WALL OF WOOD ⚬ Map shows forestry blocks in all regions contestable to Napier Port ⚬ The catchment totals approx. 420,000 hectares of radiata pine plantings HAWKE’S BAY FORESTRY PLANTINGS Source: Forme Forestry Industry Consultants Map prepared for Napier Port in 2018 by Manawatu Aerial Photo Se
Slide 4: The Wall of Wood
THE WALL OF WOOD ADJUSTED HAWKE’S BAY FORESTRY PLANTINGS (time-adjusted for average harvest age of +29 years*) Significant plantings in Hawke's Bay in the 1990s are maturing. This is expected to translate to higher export volumes to at least 2030. NAPIER PORT LOG EXPORTS * Average harvest age of Rad
Slide 5: Markets
MARKETS EXPORT MARKETS: LOG EXPORT PRICING TREND: FY20 EXPORT LOG VOLUMES: EXPORT LOG PRICES BY DESTINATION (NZD per JAS) Source: Ministry for Primary Industries Manatû Ahu Matua China 93% India 5% South Korea 2% 5
Slide 6: Markets
MARKETS BULK SHIPPING RATES ARE AT MULTI-YEAR HIGHS: Graph of BDI Index over time. Source: TradingEconomics.com The Baltic Dry Index (BDI) is a composite of three sub-indices. It displays an index of the daily USD hire rates across 20 ocean shipping routes. Whilst most of the New Zealand log trade i
Slide 7: Understanding Cost and Opportunity to Influence
UNDERSTANDING COST AND OPPORTUNITY TO INFLUENCE APPROXIMATE LOG EXPORT SUPPLY CHAIN COSTS*: SHIPPING $30 PER TONNE vessel chartering, shipping and transiting logs to customer PORT COSTS $20 PER TONNE LOGS TO PORT storage, wharfage, stevedoring $60 PER TONNE and marine costs planting, growing and tra
Slide 8: Napier Port Log Exporters
NAPIER PORT LOG EXPORTERS ⚬ Napier Port focus on forest owners, who generally % FOREST OWNER vs AWG BUYER, FY provide more stable volumes during different market conditions ⚬ Napier Port has a mix of seven log exporters • Three forest owners: PanPac Forest Products, Ernslaw One, AVA Timber (JV for R
Slide 9: Log Stevedores at Napier Port
LOG STEVEDORES AT NAPIER PORT ⚬ Two stevedore and marshalling companies – ISO Limited and C3 limited are contracted directly by exporters ⚬ At Napier Port, ISO currently have 60% share and C3 40% share 9
Slide 10: Stevedore Constraints
STEVEDORE CONSTRAINTS ⚬ Productivity • Vessels can work a maximum of four gangs per shift. Average of 3.1 gangs deployed over the last three years • Productivity has been flat over this timeframe ⚬ Difficulty of stevedores to obtain and retain sufficient skilled labour – extremely high annual turnov
Slide 11: Space Is at a Premium on Port
SPACE IS AT A PREMIUM ON PORT ⚬ Limited storage land footprint on-port at 9.4 hectares currently (with some flexibility) ⚬ Fumigation (Methyl Bromide) space intensive ⚬ ISO have recently opened a site on Hyderabad Road (3 km from Napier Port) to add additional/overflow storage for their customers 11
Slide 12: Health and Safety
HEALTH AND SAFETY ⚬ Safety performance must be maintained in an environment of increasing volumes using the same land footprint ⚬ Licence to operate in place with both stevedore companies gives Napier Port a contractual relationship, specifying conditions of access and safety requirements ⚬ Regular
Slide 13: Opportunities: Extend Reach
OPPORTUNITIES EXTEND REACH ⚬ Landside logistic services to attract more volume to Napier Port ⚬ Sources of additional volume are: • Wairoa rail • Central North Island rail ⚬ Significant opportunity to expand these opportunities as constraints are addressed 13
Slide 14: Opportunities: Mobile Harbour Crane Log Loading Trial
OPPORTUNITIES MOBILE HARBOUR CRANE (MHC) LOG LOADING TRIAL ⚬ Trial for loading logs with MHCs scheduled for 1H FY22 ⚬ Three exporters and one stevedore supporting the trial ⚬ Productivity – vessel rate expected to improve from around 500 (approximately 160 tonnes per gang) to 900 tonnes per hour ⚬ L
Slide 15: Opportunities: Log Debarker
OPPORTUNITIES LOG DEBARKER ⚬ Mobile debarking unit to be situated on Napier Port ⚬ Alternative to Methyl Bromide fumigation1 for phytosanitary treatment • Approx. 600,000 JAS p.a. currently fumigated ⚬ Provides top deck cargo – Napier Port will remain a finishing port option • Volume • Target 250,00
Slide 16: Opportunities: Wharf
OPPORTUNITIES 6 WHARF ⚬ Increases availability of both 4 Wharf and 5 Wharf for log loading ⚬ 4 Wharf is currently restricted for log loading with wide beam container vessels on 5 Wharf ⚬ New berth is important in the context of cruise ships returning and congestion in harbour ⚬ Berth capacity will b
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