Economic Headwinds Weigh on Outlook for Port of Tauranga

Port of Tauranga is the largest port in New Zealand, handling significantly more cargo than its nearest competitor. It has been voted as the most efficient container port in Australasia by the Ministry of Transport and Australian Productivity Commission. The firm's high productivity levels, low cost structure, sizable land bank, excellent rail connectivity to Auckland, and nonunionized workforce give it a considerable competitive advantage and a wide economic moat. Log and forestry products make up a significant chunk of bulk cargo and are leveraged to growth in China and the rest of Asia. Container cargo is driven by dairy exports and merchandise imports, and accounts for approximately half the total trade through the port.