Shipping line expects profit

Press, 6 April 1981, Page 20

Shipping line expects profit

PA . Auckland The New Zealand Shipping Corporation is expected to show a profit for the year, breaking a pattern of losses during the last two years.. . . The corporation chairman. Sir Thomas Skinner, said the deficits in the past were largely the result of the very high, cost of borrowing overseas, and exchange losses. “We are continuing to seek the most favourable economic .methods of funding our activities and it is expected that, in the current year a favourable result will be reported," he said. A key move in that respect has been the lease-back arrangement the corporation has secured with the Bank of New Zealand and- Development Finance Corporation after its largest ship, the New Zealand Pacific was purchased by the two organisations. This financial arrangement has given the corporation more economic freedom to pursue some of its development plans. One of these moves is likely to be increased involvement in Far East trades where the corporation already has a tenth share in the Japan container service. The corporation’s general manager, Mr Charles Speight, was to leave for Japan yesterday for talks aimed at increasing the corporation share of the cargoes. The corporation was also keen to become involved in the rapidly growing China and Korea trades, Sir Thomas said.

A tender has been put in t? carry 250,000 tonnes of Ne# Zealand coal to Japan eacji year. ,- u This could be the corporation's first major step' into'4bulk trade which' has-.'enor* . mous potential. • ; ••’* Some' reorganisation; . M corporation involyenletii 4 the New Zealand European Shipping Association confer? ence is likely. The Corporation was examining the present agreefj ment now that one of the British lines. Shaw Savill/ had pulled out of the conference. Moves could involve - changes to : the' pooling arrangements of ships, hfrsaid. t At present the corporation’ carries about 15 per cent of all the conference cargoes between New Zealand; Britain,-and Europe. l There were good prospects in Mexico, because that na/ tion was likely to buy more dairy produce from New Zealand. At present there were too many ships chasing too little cargo. • Earlier this week the corporation announced it was offering tenders for a coastal, liquified petroleum gas carrier. Sir Thomas said .the, corporation is also interested in the overseas tanker business if local oil discoveries justify a. move. The corporation has now ( been in existence for morethan seven years and it car-, ries about 850,000 tonnes ofcargo a year to 80 countries. , Its fleet ranges from one' of the largest refrigerated container ships in the .world;, the New Zealand Pacific, to tiny island traders.