Portsider March 2026

INSIDE

MARCH 2026 | VOL 46 | ISSUE NO. 1

▶ Changing Gears

▶ Scholarships

▶ Obituary: Jim Bates

BLUFF FOCUS ON:

▶ Apartment Ships and Cruise Ships

PROFILE:

▶ Pacific Basin Revisited

PUBLISHED BY

CHANGING GEARS

Tēnā koutou katoa,

In the first six months of FY26, South Port delivered a record after-tax profit of $8.45m, up from $5.76m in the prior interim period. Stronger economic activity across our region, higher imports of agricultural inputs, and a recovery in smelterrelated volumes all supported a solid half-year.

One of the most encouraging signs we are seeing is the way shipping lines and customers are actively leveraging deeper draft conditions. By enabling more efficient vessel movements and increased payloads, deeper draft reduces overall portcall costs and helps customers move more product, more reliably. During the half year, 25% of our 154 large-vessel calls took advantage of deeper draft conditions at both low and high tide - an impressive statistic that reflects real productivity gains for the vessels calling at Bluff.

Key metrics for the half year:

• Record interim cargo volumes, up 17.8% to 1.99 million tonnes

• Container volumes increased 20.4%

• Tiwai wharf volumes increased 30%

• Large vessel calls rose to 154, a 17.5% increase

• 24 calls from the MSC Wallaby Service, up from 15 in the prior period

• Operating revenue increased 17.6% to $34.75 million, reflecting volume growth and improved revenue mix

• EBITDA increased 23.4% to $15.29 million, with EBITDA margin improving to 44%, returning to levels consistent with prior peak periods

• Reported NPAT increased 46.8% to $8.45 million, supported by higher EBITDA and lower finance costs

• Interim dividend of 8.5 cents per share declared

We welcomed the return of New Zealand Aluminium Smelters Ltd (NZAS) to stronger operating conditions, with NZAS returning its third potline to full operation after volumes were impacted in the prior year by a Meridian Energy demandresponse event in February 2025.

COVER IMAGE:

“The World” inbound at Stirling Point with the former signal station in the foreground.

Photo

by

Joel Ryan.

Current hydro lake conditions for the South Island are at 105% of the historical mean, as at 1 March 2026. This matters for our region and for the Port: stable production supports consistent freight flows and reinforces confidence for associated exporters, service providers, and the wider Southland economy.

Over the past 18 months, the Southland region has experienced a structural shift towards increased use of supplementary feed to support milk-solid production. We expect this trend to continue through to year-end, and we are working to ensure port and storage capacity keeps pace with customer requirements. Coastal shipments from Bluff to Tauranga have also increased, with product sourced from Ballance Agri-Nutrients’ Awarua plant following the closure of its Mount Maunganui facility. Discussions with Ballance on the long-term potential of this coastal trade are ongoing, and we see it as a practical example of how supply chains evolve.

The energy transition is also creating meaningful projectcargo opportunities for South Port. Four vessels carrying equipment for stage two of Mercury’s Kaiwera Downs wind farm have arrived, with cargo stored on Port ahead of transport to site. One final vessel is scheduled for the first quarter of CY26. Importantly, this activity has meant that previously unused land at the western tip of Island Harbour is now fully utilised following its recent paving, turning dormant space into productive capacity.

Looking ahead, the proposed Contact Energy Southland Wind Farm, accepted into the fast-track consenting process, is now before an expert panel, with a decision expected in the second quarter of CY26. The proposal includes up to 55 turbines of approximately 7MW each. Developments like this reinforce the importance of aligning our operational planning, storage footprint, and marine systems with the timing and scale of major regional projects.

For Southland exporters, improved connectivity is critical. MSC has announced the introduction of the Eagle Service, providing a rapid direct service from New Zealand to the U.S. East Coast, with onward links through Panama to Europe.

The service commenced mid-February, with South Port connecting via transshipment through the Wallaby Service at CentrePort Wellington.

is compiled by: South Port NZ Ltd PO Box 1, Bluff 9842 (03) 212 8159 reception@southport.co.nz www.southport.co.nz

Chief Executive: Nigel Gear

Produced and edited by: Hollie Cooper

Contributors: Dave Edge

As activity grows, we are continuing to invest in the systems that support safe and efficient marine operations. Enhancements this half include the deployment of high-tech wave buoys in Foveaux Strait and the acquisition of the TZ Coastal AIS monitoring system. Together, these upgrades strengthen situational awareness and decision-making, supporting safer vessel movements and helping us capture the full productivity benefit of the improved draft.

With increasing activity on the Island Harbour, we have also engaged an independent specialist to review traffic management across all operational areas. This will help to identify improvements to keep operations safe as the Port gets busier.

In October 2025, we purchased the Foreshore Road coldstorage facility near Bluff Township. The 4,000 m² facility will be converted to dry storage to complement Island Harbour capacity, supported by an additional 2,400 m² of hard-stand for cargo-handling activities. This investment gives us greater flexibility to handle peak demand and the changing profile of regional trade.

As advised at the Company ASM in October 2025, I announced my resignation, and we are currently undertaking a recruitment process for a replacement.

We are also progressing a Board transition. Michelle Henderson stepped down effective 27 January 2026 to become General Manager of NZAS at Tiwai Point, and we acknowledge her contribution, including her leadership as Chair of the Board Health & Safety Committee.

To support continuity, the Board has moved to appoint two new independent directors: Peter Barker, a senior finance executive with experience including CFO roles and current non-executive directorships, and Jacqui Nelson, a senior energy-sector executive with leadership experience in generation and development and a current non-executive directorship.

We welcome both Peter and Jacqui to the South Port team.

SUMMER TREAT TIME

Despite the lack of sunshine hours during this Southland summer, the South Port wellbeing team managed to catch a stunning day to have Mr Whippy arrive on Port to provide all staff with icecream.

This treat was very well received as the photos below show.

Ngā mihi nui, Nigel Gear Chief Executive

OUR PEOPLE

PRACTICAL INNOVATION DELIVERING REAL SAFETY GAINS:

A new vehicle traffic control lighting system designed and implemented at the Intermodal Freight Centre (IFC), in Invercargill by Warehouse Operator Brett McDonald, is delivering clear improvements in safety and efficiency across operations.

Developed in response to frontline needs, the system supports safer vehicle movements by improving visibility and consistency in traffic control arrangements.

The lighting system is robust, highly visible, and reliable in operational environments. It aligns strongly with established health and safety requirements and key 5S principles, supporting organised, consistent ways of working and reducing risk through better design.

Feedback across the business has been very positive, with people recognising the value of a simple, practical solution that is easy to use and effective in day to day operations. This initiative demonstrates how practical innovation can deliver meaningful safety improvements without unnecessary complexity.

By improving visibility and creating clearer traffic control, the system helps reduce the risks associated with vehicle movements while also supporting more efficient operations. It reinforces safer systems of work and helps make safe behaviours easier to follow.

Brett was nominated for a staff recognition award by his peers, who described the change as: a simple, effective improvement that helps make the safe way, the easy way.

“This reflects the importance of learning from our frontline staff, and shows how practical, hands-on problem solving can lead to safer outcomes in everyday work,” said Hayden Mikkelsen, Container Operations Manager.

“It’s a strong example of thoughtful design informed by real work conditions, demonstrating how well considered improvements can strengthen safety systems, support consistency, and reinforce continuous improvement in the way we work,” he said.

Brett brings nearly a decade of hands-on operational experience to this innovation. Having worked at the IFC since 2016 as a Warehouse Operator, he will celebrate 10 years of service with the Port in June this year.

Michael Fivaz ▶ Cold Stores Manager

Ethan Carstensen ▶ Co-ordinator – Shipping & Mooring Services WELCOME:

Sian Tarrant ▶ Container Services Manager

Yulian Payan Angulo ▶ Cold Stores Operator

Cha’Kaiah Ryan ▶ Dairy Warehousing Operator

Tyson Irwin ▶ Fleet Maintenance Supervisor

APPOINTMENT OF INDEPENDENT DIRECTORS

South Port announced the appointment of two new Independent Directors, undertaken as part of the Board’s succession planning process and to address the vacancy created by the resignation of Michelle Henderson. The Board confirmed these appointments took effect at the conclusion of the Board meeting on 13 February 2026. Both appointees will stand for election by shareholders at the 29 October 2026 Annual Shareholders’ Meeting.

▶ PETER BARKER

▶ JACQUI NELSON

Mr Barker brings extensive directorial and executive experience across finance, risk management, corporate structuring (including mergers, acquisitions and divestments), and systems transformation within complex multi-jurisdictional environments. His career spans the engineering, services and technology sectors.

He is currently a Director of Downer (EDI) Limited, and former director of the Workpac Group and Mastermyne Group Limited. Mr Barker is a member and graduate of the AICD, a Fellow of CPA Australia, holds an MBA from Heriot-Watt University, and is a graduate of the Wharton School’s Advanced Management Program.

Mrs Nelson has more than 20 years’ experience in the energy sector and has been a key contributor to Contact Energy’s executive leadership team in governance, risk management, operation leadership, organisational and cultural transformation, and finance. She has 10 years of governance experience as both a Director and Chair and is currently an Independent Director for Todd Corporation.

Mrs Nelson is a member of the Institute of Directors, the Institute of Financial Professionals NZ Inc, Global Women, and the New Zealand Geothermal Association.

MAYALL CUP 2026

The Annual Golf tournament was held at the Queens Park Golf Course this year, and after a brief morning shower, conditions were ideal for golf.

30 teams competed for the coveted cup, along with the chance to win with longest drive and closest to the pin.

Taking top honours with a very impressive score this year, was 2 of our own - Ray Tull (South Port Pilot), and Jayleel Fa’amoe Ioane (Co-Ordinator - Shipping & Mooring Services).

Longest drive for females went to Sharyn Ferguson representing Queens Park Golf Club, and for males Rangi Manahi from 3 Islands Intermodal, whose team mate Andrew Mackay took out closest to the pin.

Thank you to Queens Park Golf Club for hosting us, it was great to see the course fully open and operating following the devastation caused by the October storm.

BLUFF FOCUS ON: APARTMENT SHIPS

“The World” came into Bluff and fitted comfortably into her allotted berth, “The World”, in this case being the World’s first apartment ship. She has passed this way before, most recently in 2012 when she spent several days at Stewart Island, the apartment dwellers aboard endearing themselves to the population through their generosity on auction night.

Unlike conventional cruise ships where guests buy a ticket to ride, aboard this ship the guests share ownership of “The World” through their purchase of apartments on board. As built “The World” had both apartments for the very wealthy while those of more plebian bent could buy the afore-mentioned ‘ticket to ride’ in the guest suites, which was the situation when “The World” visited Stewart Island in 2012. Since then the guest suites have been rebuilt and she is now an ‘all apartment’ ship.

The idea of an apartment ship isn’t exactly new and circa 1980 various ideas for seagoing apartment buildings were proposed. Some belonged in the realms of fantasy and perhaps the most convincing design came from Knut Kloster, the Norwegian shipping magnate and founder of Norwegian Caribbean Lines, since renamed Norwegian Cruise Line.

His concept was for a ship 380 metres long with a beam of 77 metres and having three residential apartment complexes along the upper deck able to accommodate 5,200 passengers. Unfortunately it remained a concept but Kloster had considerable influence on the design of “The World” which has now become the world’s first apartment ship to visit Bluff.

AND CRUISE SHIPS

Once again all the cruise ships that visited Bluff this cruise season tended towards the top end of the market and this year they were joined by the luxury motor-yacht “Teleost”.

Completed in the Netherlands in 1998 and recently refitted the “Teleost” has accommodation for ten guests in five two-berth cabins and is equipped with all the toys and facilities that those travelling in vessels such as this anticipate, their enjoyment being assured by a crew of up to ten.

2026 SOUTH PORT SCHOLARSHIP RECIPIENTS

Congratulations to this year’s successful scholarship recipients:

COMMUNITY SCHOLARSHIP

▶ EMILY HANSEN

Local Bluff resident Emily Hansen is currently undertaking a Master of Social Work having previously gained a degree in Psychology. Emily is dedicated to a career in frontline and community based social services, particularly in areas supporting women, individuals in crisis, and those experiencing mental health challenges, trauma and structural disadvantage.

Alongside her studies, Emily volunteers at a crisis support centre, where she provides empathetic, stabilising support to people in acute emotional distress. This work has strengthened her practical capability and reinforced her commitment to trauma informed, compassionate practice. Emily also works at the Bluff Medical Centre, where she engages community members experiencing a wide range of social, health and economic factors that affect their wellbeing.

Balancing postgraduate study, employment, volunteering, and parenting two young children, Emily exemplifies resilience, discipline, and purpose. Her lived experience enriches her empathy for families navigating stress and change. Emily’s strong academic performance, organisational skill, and commitment to service position her to make a meaningful and lasting contribution to the social services sector.

We have no doubt Emily will achieve her goal and wish her all the best for this final year of study.

South Port Director, Derek Nind (right), congratulates scholarship recipient Emily Hansen.

STAFF SCHOLARSHIP

▶ LETICIA BUSATO QUELUZ

Leticia Busato Queluz is the daughter of Eduardo Queluz, Environmental Technician at South Port. Inspired by the profound impact nurses have during a patient’s most vulnerable moments, Leticia is committed to pursuing a career as a Registered Nurse in New Zealand. She has a passion for pediatric and geriatric care which stems from her experience in Brazil, caring for both her younger cousins and her grandmother - moments that taught her the importance of patience, empathy, and ensuring others never feel alone.

Beyond her career goals, Leticia is an active and engaged member of her school community. Participating in volleyball, Athletics Day, and serving as a Senior Reading Mentor, International Academic Mentor, School Tour Guide, and Library Supervisor has strengthened her leadership, teamwork, and communication skills. Her volunteer work with World Vision and the LEO Club further reflects her deep commitment to the community and to helping others.

Having moved from Brazil to New Zealand as a nonEnglish speaker, Leticia has demonstrated resilience and determination by learning a new language while excelling in leadership roles. She hopes this scholarship will support her studies as she works toward becoming a nurse dedicated to serving her community with skill, compassion, and heart.

We wish Leticia well for her first year of studies.

PREVIOUS SCHOLARSHIP RECIPIENTS

Congratulations to Hayley Van Beek and Alexander Egginton, two previous scholarship recipients who recently graduated, and shared their success with us:

Hayley Van Beek, 2022 Staff Scholarship recipient, graduated in December 2025 from the University of Otago with a Bachelor of Education. Hayley is keen to start her teaching career in Southland with the support of her family, friends, and everyone who supported her throughout her studies.

Alexander Egginton (Alex), 2025 Staff Scholarship recipient, graduated from Auckland University of Technology (AUT) in December 2025 with a Bachelor of Health Science in Perioperative Practice. Alex has chosen to remain in Invercargill, wanting to contribute to high-quality surgical care in Southland.

NAVY AND FISHERIES NEW ZEALAND TEAM UP

The Royal New Zealand Navy completed a successful fishery patrol around Stewart Island and Foveaux Strait, working in close partnership with Fisheries New Zealand (FNZ).

During February, Inshore Patrol Vessel HMNZS Taupo conducted the patrol with FNZ fishery officers aboard, providing a visible presence to commercial fishing vessels operating out of ports including Half Moon Bay, Bluff and Riverton.

For the Commanding officer of HMNZS Taupo, Lieutenant Commander Toby Mara, working with FNZ is an important task that is looked forward to.

“Both organisations share a similar commitment to protecting New Zealand’s valuable marine resources so conducting this compliance operation provides that critical visibility,” he said.

Fisheries New Zealand and the Navy jointly conduct patrols throughout New Zealand’s Exclusive Economic Zone (EEZ), says Garreth Jay, FNZ’s Compliance Manager South.

“Working with our Navy partners gives us greater capacity to inspect commercial fishing vessel operations further out to sea and helps provide a greater picture of fishing operations throughout the EEZ.”

During last week’s patrol, fishery officers inspected vessels’ electronic reporting, paperwork, and fishing practices.

“Our officers found a generally good response from crew on board the vessels they inspected, and the majority of the vessels were following the rules,” Mr Jay said.

“Of the 14 inspections conducted on commercial fishing vessels and one amateur charter vessel, three instances of alleged non-compliance were detected, and we are making further enquiries into these.”

The 55-metre long Taupo can accommodate 37 personnel and is more commonly utilised for RNZN Officer of the Watch training and to test the navigation skills of newly qualified sailors, Lieutenant Commander Mara said.

An operational tasking, however, provides the most valuable training of all as it’s a practical way for the ship’s company to demonstrate what they’ve learned in a challenging and dynamic working environment.

“The situation can change within minutes at sea, and our people need to pivot accordingly to achieve the required result. The value this offers them early in their career is immense,” he said.

2026 PORT OPEN DAY

Following months of planning the biennial Port Open Day went ahead on Sunday, 8 March, despite the challenging weather conditions.

The event was free, but ticketed reservations were required to match bus capacity. After the initial release of tickets was sold out, an additional 2 buses were added which also sold out and though the rain deterred some people from joining in, those who did thoroughly enjoyed their tour.

The tours started from the Bluff Oyster Festival Site (which fortunately provided shelter), and housed an Entertainment Hub, which included face painting, mini jeeps, bouncy castles and live music which was all provided by South Port.

From here ticket holders boarded buses and headed to the Island Harbour. Three of the tours were 2-hour interactive tours and the additional 2 bus tours were for an hour.

The 2-hour tours included an interactive stop at the container terminal where they learned about the heavy machinery on Port, and had a chance to look and touch, and at marine where they boarded the tugs and learnt about the role they play. The final piece was a bus tour around the rest of the Island Harbour, hosted by South Port staff as tour guides who shared their knowledge of the Port.

Upon returning to the Oyster festival Site, feedback was positive with many patrons noting how informative it was.

Below are photos from the day.

OBITUARY: JIM BATES, A LASTING LEGACY

South Port recognises the loss of a legend with the passing of Jim Bates in December 2025, a contractor whose contribution to the Port, and to the people who work on it, will be felt for years to come.

Few individuals can look across a working port and see so much of their life’s work built into its foundations, Jim Bates however, achieved just that after founding Jim Bates Contracting in 1984, marking what would become a 40-year association with South Port.

During this time Jim was directly involved in the development of Berths 3 through 8, the North and South Log Yards, and his final major project, the West Tip hardstand storage development. Jim was immensely proud of his role in developing the last of the Island Harbour grass land.

Jim possessed extensive technical knowledge and was an innovative contractor, integrating 3D pavement construction technology into his machinery ahead of much of the industry. He applied the same care and attention whether the job was small or a multi-million-dollar development, which showed in the results, defects were rarely an issue.

A highly skilled operator of his Volvo G930 grader, you would find Jim on site in all weather, setting the standard. He loved the projects, the people and the satisfaction of completing a job properly, but above all, operating his grader. That passion never faded, even after four decades at the Port.

NEARLY NEW

Jim’s legacy is not only measured in projects, he built a family business which he lead with pride, this was evident particularly when working alongside his son, Greg Bates.

He also extended this sense of family to South Port’s young infrastructure engineers, generously sharing his time, knowledge, and experience.

Jim left the Island Harbour for the final time on 5 November, closing a remarkable 40 year chapter. The South Port team will miss him greatly and remain deeply grateful for his service, his craftsmanship, and his friendship.

To the Bates family, South Port extends its sincere condolences. Jim’s legacy is etched into the port itself, and into the people who were privileged to work alongside him.

Over the years we have featured many ships that called at Bluff on their maiden voyages. The "Sannomine", however, was already into her second voyage when she became the first ship completed this year to visit the Port, arriving on the 3rd of March. She was designed and built by Imabari, currently Japan's most prolific shipbuilding group, and entered service on 16th of January this year, having been laid down on 29th of April 2025 and launched on 13th of October. Owners of the "Sannomine" are Tsurumi Kisen Company Limited, founded in 1962 and conveniently based in Imabari, although the "Sannomine" flies the Panamanian flag. Gross tonnage is 25,240 and deadweight 40,093 tonnes with cargo handled by 4 x 30.7 tonne deck cranes while a 6 cylinder diesel engine of 5,060 kW/6,880 hp gives a speed of about 14 knots. Like all large, modern motorships the "Sannomine" is fitted with exhaust gas scrubbers to remove particulate matter and harmful gases such as sulphur and nitrogen oxides.

The first 'Imabari 40' ships were delivered towards the end of 2023 and to date 54 have entered service with a further 26 either under construction or on order.

PACIFIC BASIN - REVISITED

Among the most frequent visitors to Bluff are ships in the fleet of Pacific Basin and a unique occasion featured three of the company's vessels berthed together on the Island Harbour, as portrayed in the photograph below taken by Tammi Topi. The three ships featured are the "Indigo Lake" nearest the camera in berth 4, the "Bass Strait" sharing the basin at berth 5 and the "Santiago Basin" alongside berth 8. Advance the clocks 24 hours and there are still three Pacific Basin ships in the same three berths but the "Bass Strait" has departed and the "Koombana Bay" arrived to take her place. While we can't recall three Pacific Basin ships being in Port together it may have happened, but we are confident that it is the first time three of the company's ships have been together at berths on the Island Harbour with a fourth also featuring.

Pacific Basin featured in the May 2005 edition of the Bluff Portsider, so to bring our readers up to date with the company's development in the last couple of decades shouldn't go amiss. It may be recalled that in 1996 the entire fleet of 'Handy' bulk carriers was sold to Malaysian interests but in 1998 the second Pacific Basin iteration began, still with the original founders, Paul Over and Christopher Buttery, in charge and Mark Harris the chief financial officer. By 2005 the fleet numbered 45 'Handy-size' bulkers, a substantial fleet to acquire in just seven years. Nor were bulk carriers to be the only ships in the Pacific Basin portfolio as in 2007 it bought a 90% share in harbour towage company Australia Maritime Services. The company was renamed PB Towage Pty Ltd and the six tugs, based in Brisbane, Melbourne and Sydney, were renamed by adding the prefix 'PB' to their existing names. A major building programme was undertaken and by the end of 2010 the owned fleet comprised thirtyone tugs with bollard pulls of up to 69 tons. Towage services were offered in many Australian ports and through its SeaTow subsidiaries delivered cargoes throughout Australasia, South East Asia and the South Pacific. Other tugs were based as far away as the Persian Gulf and numerous

partnerships were entered into. This all ended in 2014 when the towage division was sold to Smit Lamnalco Australia Proprietry.

Towage was not the only non-bulk shipping field in which Pacific Basin dabbled. Early in 2008 the company announced it was entering the ro-ro field and shortly thereafter purchased two newly built roll on-roll off ships from the Grimaldi Group, ordering another four such ships from Odense Staalskibs at Lindo. The last of these to be delivered, the "Bering Strait" in January 2012, was also the last ship ever built by this famous shipyard. Towards the end of 2012 Pacific Basin announced it was withdrawing from roll-on roll-off shipping with all six ships being taken on bare-boat charter by the Grimaldi Group and purchased over the following three years.

Pacific Basin was now free to concentrate on its primary role of transporting dry bulk cargoes. A major expansion of the fleet took place from about 2007 through until 2018 with a large number of ‘Handy-size’ – up to 40,000 tons deadweight - and ‘Supramax’ – up to about 65,000 tonnes, plus two ‘Cape Size’ ships of 115,460 tonnes being delivered. The current bulk carrier fleet, owned and chartered, comprises 266 ships, 121 of them handy-size vessels of up to 40,000 deadweight tonnes, 144 supramax ships in the 40,000 to 65,000 tonne range and one Capesize ship of 115,460 tonnes. This makes it the biggest operator of handysize and handymax bulk carriers in the world. Last year the fleet transported 42 million tonnes of cargo, visiting 882 ports in 107 countries and employed 4,300 seafarers, while 406 shore staff manned 14 offices in 6 continents. There is also one New Zealand-manned and flagged ship in the fleet, this being the Auckland based bunkering tanker “Awanuia”, managed by SeaFuels Ltd. A slightly larger tanker with the working name “Ada Denizcilik” is due for delivery in 2027 to Pacific Basin and is also destined to fly the New Zealand ensign.