Shipping Corp. earns $7M

Press, 20 November 1982, Page 21

Shipping Corp. earns $7M

PA Wellington The Shipping Corporation has announced a $7 millionplus profit in a result hailed as proof of its ability to compete in international and coastal shipping. The new profit of $7.2 million was announced in the state-owned corporation’s annual report, tabled in Parliament yesterday. In a statement on the corporation’s sixth net profit in its eight and a half years of operation, its chairman, Mr Harry Julian, said it was achieved on a record trading income of more than $lOO million. The result was welcomed by the Minister of Transport, Mr Gair, who said the Corporation had no special privileges as the New Zealand flag-line and was “expected to trade competitively according to normal commercial practices.” The profit, in the current economic circumstances, was “a fair indication of the Corporation’s ability to compete successfully.. “Even though the maritime industry generally is going through a difficult period, the corporation has been quick to seize opportunities to initiate new projects...” Mr Gair said. Mr Julian said the corporation had maintained its established services during the year (to' August 31), including'small growth in the Europe and Japan runs. It also extended its ship management role, carried more than- one million freight tonnes, and had 80 sailings to and from international destinations. The. Shipping Corporation was looking to expand its existing Asian trade, and enter the trans-Tasman and

bulk trades. Mr Julian said the transTasman route with the Australian National Line was the most important possible new trade with the C.E.R. agreement encouraging trade growth. “The introduction of a new service will provide increased competition and op- ( portunities in shipping be-' tween the countries which will be important factors in realising the potential of C.E.R.,” he said. The corporation forecast a “modest profit” from the current year but Mr Julian said the world economic situation had caused a drop in cargo available to the world fleet. . “This has increased the severity of problems burdening shipowners evidenced by an alarmingly high proportion of the young vessels and a substantial over-supply of ships competing for the cargo available in all forms of international water-borne trade and services. “There is no prospect of this situation substantially changing in the forthcoming year, but it is to be hoped that thereafter the international economic situation will improve and bring with it greater stability between supply and demand for shipping,” he said. “Despite the very difficult conditions for shipowners in the coming period the corporation will be alert to new opportunities that may arise. “The merits of these will be judged on commercial and strategic criteria and any consequent expansion will be carefully controlled. With the knowledge of projects in hand at the time of this report, some increase in operations will be brought into effect this coming year.”