Napier Port Holdings Limited (NPH) Earnings Call Transcript & Summary

[Indiscernible] We are just going to open up with the Karakia, short Karakia followed by Mihi whakatau, our formal welcome. Karakia are important spiritually, but they're also important mentally. We often use Karakia when we go out on our workout to acknowledge the environment around us and to refocus us to the task at hand. So it serves a very good purpose. But of course, our focus today is on our meeting. The Karakia that I'll recite is a short one, and the Karakia speaks of the people that have come before us to give us strength. It also speaks to us being free of mind but not free to throw things at the stage, please. And also that we move forward as one. Following that, it will be a Mihi whakatau acknowledging those that have come before us. Those of us here today in the purpose of our meeting. [Foreign Language] [Presentation]

[Foreign Language] So formal thank you to Te Kaha the first greetings of today's occasion. [Foreign Language] So welcome to everyone here to the shareholder meeting, including people on [indiscernible], the Internet. Welcome to you all. [Indiscernible], good morning, and my name is Alasdair MacLeod, I'm the Chair of Napier Port for another hour, and I'll be running today's meeting. Before we get started, a few household messages. In the unlikely event of a fire, please exit through the door where Te Kaha is. There's one over there, and there's one right around the back. In an earthquake, stop, drop and hold and if the earthquake is long and strong once shaking stocks, and I presume that means the ground rather than all of you, please exit the building and make your way up a Bluff Hill. Toilets are just outside the main door here. Gents are just on the right of the door and the ladies is just a little bit further along. And the -- we will have refreshments at the end of the meeting. And please turn your mobile phones to silent, including all the Board. So our next slide. This disclaimer up here. It's the standard disclaimer advising that this presentation does not amount to financial advice. If you'd like to read it in detail, please feel free to download this presentation from the Napier Port Investor Center. Now I'd like to introduce my fellow Board members, Blair O’Keeffe, Stephen Moir, Diana Puketapu, Vincent Tremaine, John Harvey, Rick Barker, Kylie Clegg and Dan Druzianic. And our senior management team, Chief Executive, Todd Dawson; Chief Financial Officer, Kristen Lie; and the General Managers Assets and Infrastructure, Michel De Vos; People and Culture, Viv Bull; Marine and General Cargo, Adam Harvey; Commercial, David Kriel; Corporate Affairs, Jo-Ann Young; and Strategy and Supply Chain, Andrea Manley, who can't be with us today because she's got COVID. And our auditors EY, represented today by Stuart Mutch sitting at the back. So we'll have a short presentation of the annual results before we take questions relating to those. For our shareholders in attendance, you may ask questions and vote as usual on the voting card given to you at the registration desk. Shareholders online will be able to ask questions and cast their votes online. Please refer to the virtual meeting guide or contact the team at Link Market Services on 0800-200-220, if you require any assistance. I encourage shareholders who have questions relating to the business of the meeting to send their questions through as soon as possible. We'll conclude the meeting with general business. Please note that only shareholders, proxy holders or shareholder company representatives may vote or ask questions. Following the meeting, light refreshments and a cup of tea will be served in the exhibition hall. After refreshments, we're providing a short bus tour of the port. And due to customs requirements, you'll need photo ID to go on the port bus tour. I'd like to thank all shareholders for their participation in today's meeting. And now for the formalities. The Notice of Meeting has been sent to shareholders and other people entitled to receive it. I've been advised that we have a quorum present. On that basis, I am pleased to formally declare the meeting open. Proxies have been appointed for the purposes of this meeting in respect of approximately 151.4 million shares, representing 75.68% of the total number of shares. My fellow directors and I intend to vote all discretionary proxies we have received in favor of the resolutions as set out in the Notice of Meeting. The format of the meeting today will be as follows: a brief address from me followed by Chief Executive's address, Chief Financial Officer's address, shareholder questions on the presentations and the annual report and financial statements. The formal business of the meeting, including the resolutions of the meeting and general business and shareholder questions. Voting on all resolutions will be conducted by way of a poll. I'd now like to give an overview of the 2022 financial year. In the face of ongoing pandemic impacts and disruptions to shipping schedules and supply chains, Napier Port has had a successful year. As Chief Executive, Todd Dawson and CFO, Kristen Lie, will comment on later in this meeting. The team have moved one of our highest annual volumes of cargo, which in turn resulted in the solid financial results we are presenting today. Underpinning these results was the continued global demand for our regions, food and fibre products, which highlights one of Napier Port's key strengths. The world continues to demand the premium primary sector commodities, our region excels at producing and Napier Port continues to be able to move. Thank you to our cargo owners who have worked closely with us this past year to overcome the considerable disruptions we've all faced. To contractors, suppliers and transport operators, a sincere thank you for helping Napier Port keep our cargo owners and our community connected to global markets. Strategically, it has been a highly successful year. We have made significant progress continuing to put in place the infrastructure and capabilities that will underpin the success of Napier Port and our wider regional economy for decades to come. The centerpiece of this investment is Te Whiti wharf. Without a doubt, it's opening on 22nd July was a highlight for us and delivered on the commitment we made when we launched our initial public offer and NZX listing in 2019. As we have said previously, it gives cargo owners more shipping and supply chain options, access to the larger vessels coming to New Zealand and greater flexibility and berth availability on our other 5 wharves. It is a credit to Napier Port under our contractor partners that construction not only stayed on track and on budget during 2.5 years of a global pandemic but became operational earlier and under the initial estimated costs. The construction of Te Whiti has been one of the country's largest pieces of privately funded transport infrastructure in a decade, and we were able to do that with your support. As Todd will detail shortly, while Te Whiti has been the center piece of our infrastructure program, other investments we have been making on behalf of customers have progressed alongside. This places Napier Port in a prime position now to leverage our increased capacity and our new capabilities to deliver more cargo for more customers via more road, rail and shipping options. It is important to the Board that our actions as a business match the aspirations and expectations of our shareholders as well as our people, customers and the community. We hope you share with us the emphasis we placed on our uncompromising stance on health and safety, our progress on being a very diverse range of -- on a very diverse range of sustainability initiatives and being a good employer and a good neighbor to the community. We are grateful for your support and confidence to continue investing in Napier Port. The Board has declared a final dividend, which was paid yesterday of $9.4 million or $0.47 per share. This brings the total dividend for the 2022 financial year to $15 million or $0.75 per share, the same as last year. We have confidence that Napier Port's balance sheet and core strategic infrastructure positions the company well in the face of the changing macro environment and inflationary pressures. The demand for the exports that cross our wharves, together with the benefits we see coming from our strategic capital investment program and Napier Port's proven resilience stand us in good stead. I'd now like to introduce Napier Port Chief Executive, Todd Dawson. Following the business of the meeting, I will return later this morning with a few words on what the past 8 years as Chair of Napier Port Board has meant to me. Todd Dawson?

Thank you, Alasdair. Good morning, everybody, and thank you for taking time to attend our Annual General Meeting today. As Alasdair has said, it's been another challenging year, which makes our results and our progress on strategic developments even more satisfying for us. From a trading perspective, we handled one of our highest volumes of cargo in our history. 5.39 million tonnes and revenue increased to a record $114.5 million. This is a credit to our whole team, customers and partners who work together to achieve this result. During the first half of the year, our customers faced a particularly difficult time. Labor shortages, workforce absences, caused by the pandemic limited their production. Adverse weather events, particularly high rainfall, further impacted local production. And of course, global supply chains remain disrupted and caused significant diversions from shipping schedules and reduced the number of vessels visiting New Zealand and, of course, Napier Port. This chart, it's not a piece of art. It actually perfectly illustrates the container shipping disruption Napier Port has experienced this year, but also over the last 2.5 years, shipping services largely maintained schedules until the onset of COVID, about halfway through our 2020 financial year. Since then, they have become more random, resulting in vessels being serviced largely on our first-in, first-served basis. As explained during our half year update, the disrupted schedules resulted in additional rehandling and restacking of containers in the container terminal. It also puts pressure on terminal space management and labor rosters, increasing our operating costs. Schedule disruption also results in fewer container vessels calling and reduced shipping capacity available to cargo owners to ship their products to global markets. These factors, together with intense cost pressures across the supply chain had flow-on effects. Total cargo volumes decreased compared to the same period a year ago. Operating costs also rose substantially. Coming into the second half of the year, we were pleased to see volumes recover in line with the prior year. It is encouraging to see the ongoing demand for our region's exports and early indications that global shipping disruption and pricing are showing signs of easing. A return to schedule reliability and pro forma berthing windows during 2023 is starting to look possible. On the positive side, we're really heartened by the enthusiasm with which our region has now welcomed back cruise to Hawke's Bay, and we look forward to a record season with 88 cruise vessels expected to call. This year, we have delivered on long-standing strategic objectives that position Napier Port for the future. The opening of our new wharf Te Whiti 6 months ahead of schedule and under budget was an incredible milestone the team delivered for our region. We're already seeing the benefits of extra capacity and more seamless movement of cargo vessels in and out of our port. In the first few months of our new financial year, we are seeing an increasing number of resources calling as well as a strong interest from current and new shipping lines to add Napier into the port calls. This includes a new weekly direct Napier to China service announced recently. Concurrently, we have been enhancing our configurations for berthing and working vessels in our terminal and log yard layouts to improve productivity and extend our capability and operational performance also. These developments all lend themselves to support the future growth for customers and Napier Port across all our key cargoes, containers, bulk and crews. As Alasdair said, Te Whiti wharf is part of a wider program of infrastructure investment. We've been undertaken to drive efficiency, growth and greater supply chain shipping options across both Hawke's Bay and in North Island. Our logistics service, which coordinates road, rail and warehousing, from site-to-sea is now a year old and growing. Partnering with KiwiRail road transporters in the Manawatu Inland Port, it provides customers in the central, lower and now the Upper North Island cargo handling options all via Napier Port. We're getting interest from further afield and growing the service is a key focus area for us now. Log debarking is another new Napier Port operation that began during the year. And volumes are climbing and we're seeing demand increase for the service. We're now looking at ways to increase throughput in the coming year by expanding its capability and its utilization. In an environmental win for our region, implementation of the debarker also enabled us to end methyl bromide fumigation of logs on port. It's further reducing the risk to health and safety and improving environmental outcomes. Another advancement in safety and operational efficiency for our customers has been the start of our log loading operations using our mobile harbor cranes and customized log grabs. The grabs were designed, built and fitted to the existing mobile harbor cranes and they've been faster loading times. This creates further efficiency for our customers and will help us to effectively manage the forecast increase in log volumes that are coming. Importantly, log grabs also deliver improved safety by removing people from the operational area where the logs lifted further reducing risk on the port. These investments have increased Napier Port's capacity and capability, and we can now handle more cargo, we can move it faster, more efficiently and safely and from a wider geographical area. Customers now have more options to connect to the world via Napier Port. While other ports in the North Island are at capacity and experiencing delays of up to 2 to 3 weeks, we're now in a very good position to support them and release or at least ease the pressure being felt across the New Zealand supply chain. This further supports our regional growth in Napier Port's role as an essential part of the New Zealand supply chain. Underpinning all the success in our strategic projects as our team and our culture of care that prioritizes health and safety and the environmental and the development of our people. We've had an uncompromising approach towards reducing and where possible, eliminating critical risk, which are those accidents that are most likely to cause serious harm or death on the port. Putting in place engineered controls are seen and has been a significant focus for us in removing critical risk. This approach has required commitment and investment in good infrastructure and engineered design for safety. An example of this is our MoorMaster and ShoreTension mooring technology and physical barrier protection, which is separating people from machines. As we continue to mature our health and safety road map, our focus on critical risk control management will continue as well as building on our health and well-being focus. The port sector review by Maritime New Zealand recently and WorkSafe this year concluded that Napier Port had no immediate issues to remedy. While this is encouraging and reflects the priority that the team has placed on safety, there is never room for any complacency on the port. We will always try harder to improve safety for everyone working and visiting Napier Port. Employee engagement remained strong with our annual employee survey, showing overall engagement above 70% once again. Feedback from our team tells us that Napier Port is a great place to work, and our people feel strongly connected to Napier Port and our purpose of building a thriving region. We are pleased that in another year of challenges, our people feel connected to the business and recognize the role that they play in its achievements. This year, we also asked our community how they felt about Napier Port. Our reputation is very important to us because community support effectively gives us our license to operate. This research showed 99% of respondents felt that Napier Port is of key importance to the region, it is seen as an integral part of the region's prosperity, bringing in freight and tourists and leading to jobs and economic benefits. We've made good progress on our sustainability initiatives since the launch of our strategy and action plan last year. Of the 100 actions we outlined, more than half are underway or complete and a further quarter are in the planning process. These cover a wide range of social, economic and environmental projects, such as developing our equality, diversity and inclusion roadmap, implementation of our marine cultural health program in partnerships with research institutions and iwi. Our climate change risk assessment, emissions inventory and tracking and a terminal efficiency road map to optimize storage and movement of in and outbound cargoes. Our focus on emissions measurement, reporting and reductions is becoming increasingly important also. Last year, we published our first climate change-related disclosure report detailing the potential financial implications of climate change on Napier Port. During 2022, we published our second climate change-related disclosure report and developed an emissions reduction strategy. This provides a framework and pathways going forward for reductions. We've now widened the scope of our Scope 3 emissions reporting and emissions inventory was audited externally for the first time by Toitu Envirocare this year. Our total carbon emissions reduced by 5.2% this year. This was as a result of a decrease in total cargo volumes as we use less fuel across our mobile plant and marine fleet. Our largest emitters at the port are forklifts, marine fleet, cranes and from purchased electricity. Looking forward, we have more work to do to deliver on our emissions reduction strategy, which seeks to replace every time our diesel-powered plant and equipment with low emissions alternatives. In the short term, we will be taking steps to enhance our decision-making further by integrating emissions considerations and in the medium term, grow our electrical infrastructure capacity. In the coming year, every team at Napier Port has been challenged to identify an emissions reduction activity, including a target to work towards. I'm now going to hand over to Kristen Lie, who's going to talk you through the financial and operating results.

Thank you, Todd, and good morning, everybody. [indiscernible] to see you all in person. Due to the factors that Todd mentioned, the difficult first half of the year led to reduced overall production within our cargo customers operations. Second half saw a relative stabilization in trade volumes, notwithstanding the ongoing effects of the lower primary sector production from the first half of the year. The overall impact was an 8.1% reduction in total cargo handled through Napier Port to 5.39 million tonnes. Within that total, log volumes decreased by 5.8% to 2.84 million tonnes due to the softer log export market conditions in China throughout the year. In total, bulk cargo volume, including log exports of 3.65 million tonnes was 7.6% lower than the prior year. Total annual container volumes decreased 7.9% to 254,000 TEU and container vessel calls declined by 16% due to the shipping disruptions that Todd spoke about. Whilst container volume falls were across the board, timber, apples and meat exports led the declines. For the 2022 financial year, we achieved a new record for total revenue of $114.5 million, which increased by $5 million or 4.6% from the prior year. This result was achieved despite annual volume declines in both main cargo areas and the practical absence of cruise vessel calls. Our container services revenue increased by $5 million to $70.5 million, offsetting the volume decrease of 7.9%. We achieved an overall increase of 17% and the average revenue per TEU earned compared to the prior year. These additional revenues were earned from providing complementary container handling services, pricing increases related to our increased infrastructure investments, and the introduction part way through the year of a fuel cost recovery charge, which helped to partially offset the large increase in fuel prices. Bulk cargo revenue of $41.4 million was 0.3% lower than the prior year. This resulted from the 7.6% lower volume, which was mostly offset by the 7.9% increase in the average revenue per tonne we achieved. Whilst revenues grew by just under 5% in the year, total operating expenses increased by 13.3% year-on-year, reflecting higher cost inflation across all expense categories. We have introduced mitigating revenue measures to offset some of our larger expense growth areas such as fuel and inflation, but the high inflationary environment remains a challenge. In addition to our continued focus on controlling spend where possible, we have proactively moved to increase our revenues to reflect our increased capital investments and from additional services, which has helped to mitigate higher operating expenses and the effect of reduced volumes during the year. Results from operating activities of $40.1 million decreased by 8.4% compared to the prior year record results. Reported net profit after tax for the period was down at $20.4 million, down from $23.2 million in the prior year. Capital expenditure during the year in cash outflow terms was $72.1 million, $56.5 million of which went again towards the Te Whiti 6 Wharf construction. This was reduced from the prior year's total spend of $104 million. Other investments in the year included physical safety improvements, the acquisition of ShoreTension dynamic mooring units, replacement mobile plant, payments towards the log debarker and mobile harbor crane log loading equipment. We are, of course, very pleased with the outcome of the Te Whiti construction project. We've managed a complex and risky project successfully. In the final accounting, the final cost of construction of Te Whiti was $171.1 million, lower than the original estimate of $173 million to $190 million. Overall, the Te Whiti project spans 7 years from initial planning and consultation to completion. Whilst this was not quick nor was it easy, we did approach this project from the outset with an intent to make the most of the regulatory requirements. The work we have undertaken on this project is now reflected in a lot of the good work we are doing in the social and environmental areas, within our sustainability strategy. Around the time of the completion of the major construction project and the effective passing of this significant business risk, we reviewed and renewed our financing arrangements to take us forward into our next phase. As a result, we issued our first listed bond for $100 million in September, which was used principally to repay bank debt. During the process, we made a concerted effort to prioritize our shareholders for the bonds offer. And hopefully, all shareholders received an invitation to review the offer and participate if you wanted to. As the offer closed, we were pleased to allot 100% of the offers received via the shareholder priority offer. We've also refinanced our banking facilities, meaning we now have longer maturities and more diversified sources of funding. The weighted average term to maturity for our loans and borrowings at the balance date was a healthy 4.7 years. In addition, at the balance date, we had a relatively low exposure to variable interest rates with $110 million or 82% of our gross borrowings subject to fixed interest rates. In terms of the amount of debt, we expect to see a peak in our debt-to-EBITDA ratio during this financial quarter as we continue to work towards our long-term target ratio of 2 to 3x. Thank you, and I hand you back over to Todd.

Thank you, Kristen. There are many reasons for us to be optimistic about the year ahead and beyond. In the last year, we moved to one of our highest volumes of cargo despite significant supply chain disruption. We completed construction of our new wharf Te Whiti and opened it early and under budget. We continue to introduce new revenue streams and growth opportunities. We have shown the ability to keep delivering on strategic projects. In doing so, we have the core infrastructure and capacity available for our customers and ourselves. Both our region and the underlying demand for its food and fiber products continues to grow alongside our reputation for providing excellent and reliable levels of service to our customers. We're now moving into a period of transformation. Whereby, our people, infrastructure, systems and processes we have put in place are opening up new growth opportunities for Napier Port and our customers. We are well placed to alleviate supply chain pressures and support other New Zealand ports who are currently at capacity and suffering from limiting infrastructure deficits. A few comments on the current outlook for our business. Trading for the first 2 months of the new financial year is in line with our expectations. Sentiment amongst customers and ourselves is that we are cautiously optimistic for the year ahead, although there is no room for complacency within the current economic environment. The early signs of global shipping disruptions easing and freight pricing starting to decline globally. However, this still needs to flow through to New Zealand. The operating environment remains unpredictable and challenging. Rising costs, both here and abroad are of concern for Napier Port and our customers. At the same time, the global economic environment is seeing the impact from inflation and rising geopolitical tensions. This continues to represent a significant challenge for New Zealand's trading environment and a source of uncertainty related to both supply and demand. As we have highlighted previously, we are seeing inflationary cost pressures across the whole business. We provided earnings guidance for an underlying result from operating activities for the year to 30th September 2023 of between $42 million and $48 million. This range reflects continuing uncertainties and assuming a continuation of the current market conditions. Finally, I'd like to acknowledge and thank the whole Napier Port team for their efforts this year. including our directors and particularly our retiring Chair, Alasdair MacLeod for his support. Alasdair leaves the Board at the conclusion of today's annual meeting, having led the company through one of the most significant periods in Napier Port's history. He leaves his legacy a safer port operation where people are valued first and foremost. He has successfully governed us through the initial public offer and listing on the NZX. He has overseen the company's largest ever investment in infrastructure development and the successful navigation of periods of national emergency, including the Kaikoura earthquake, the global COVID pandemic and unprecedented disruptions to the national and global supply chains we've seen in recent years. On behalf of shareholders, the Board and the whole Napier Port team, I thank him for his commitment to Napier Port, its people and our region. I'll now hand over or back over to our illustrious Alasdair MacLeod.

I promised everyone I wouldn't cry today, so I'm going to do my best. So thank you, Todd and Kristen. Now that we've concluded our presentation on the annual results, I'd like to open the floor to questions on the annual report and financial statements. If you have a question, please raise your shareholder card, and one of our people will bring you a microphone. And please just wait until the microphone arrives because otherwise, the people online won't be able to hear the question. Shareholders participating online through the virtual meeting website are able to submit questions online, and we'll answer those after answering questions from the floor. If you could start your question by identifying who you are, that would be great. And for the fairness of all those attending, we ask that you are as concise as possible and to ask 1 question at a time. For any media attending, you'll be given a chance to ask questions directly to myself or Todd at the conclusion of the meeting. Are there any questions?

[ Paul Grant ], shareholder. Congratulations on the execution of a Te Whiti wharf. I'm just wondering that you mentioned the 2 months of the new financial year, just what the net debt position would be now.

I'll answer that one. So at balance date at the end of September, it was $134 million. Now having paid the dividend yesterday and interest payments this month, it's about $140 million.

Yes, I'm just trying to factor in at the operating profit, that's 42% to 48%, the interest charge and where the NPAT would be. So that's just the other question, if I could. Just what's your projection for NPAT for this year?

We don't provide publicly an NPAT projection, but our result from operating activities, which is effectively like an EBITDA metric, which is our key trading metric. Our guidance for that is between $42 million and $48 million for the next financial year. I might just add to that to try to be helpful, we have talked about -- and our public information that as a result of Te Whiti project completed, we are expecting increases in depreciation for the next financial year. And obviously, with the financial environment that we're experiencing, the cost of capital debt, in particular, has gone up considerably a year -- across the 2 years, albeit we're now highly, I guess, hedged or fixed in that regard.

Thank you. Are there any other questions? One here from...

[indiscernible]. I have more than one question, but I'll ask them one at a time. What about Whakatu?

Yes. So Whakatu is still on our, I guess, longer-term plan, and we'll develop it as and when we need it. And at this stage -- at some stage off. So at the moment, it's parked up in terms of a development opportunity for us for now.

The second question is, where does all debark go?

We work with BioRich. BioRich come and take that debark away, pays us a small amount for it, and it obviously goes back down the road there and gets composted and used for other purposes.

When the IPO took place, there was significant staff participation. And I think the figure was mentioned at the time that it was the highest known either in New Zealand or in the Southern Hemisphere with staff changes, is that -- has that gone down? Or is it significantly gone down?

Yes. So when we did the IPO, approximately 97% of our employees took up the opportunity to become shareholders. 2, 3 years post the listing, the number of people turning over would have had a detrimental effect to that number. But what we've done in the last year, not this year, but last year as part of our employee incentive program, we also -- we split the amount that was paid to employees half shares, half cash, and that has the effect of bringing all employees eligible for that back into the opportunity to be able to have ownership in the Port. So it's quite important to us that we keep that process going over time to account for those to people that might leave and new employees joining that they also have the opportunity to become shareholders in the port.

Yes, that's good. You mentioned geopolitical risks. Does this include a risk assessment of the current work hysteria that is gripping the planet?

Not directly in that terms. But certainly, we've got a very pragmatic set of business leaders across the port that like to understand the viewpoints of many. It's probably my politically correct [ woke ] way of answering it.

He's turning [ woke ] as well.

I think sometimes it would be helpful if you had a glossary too. I know this is a number of acronyms in there, which I'm sure you all know exactly what they are like. EAP, IoT, TEU and so on and the rest of this, they are a bit enigmatic.

Duly noted. Thank you.

Any further questions?

[ Anita Hawkins ] asking a question concerning Napier Council. What revenue do they derive from the Port, if any?

Napier Council not a direct shareholder of the Port so they don't get a dividend directly. However, they would receive rates. I'm not actually sure off the top of my head, what the rates number would be for Napier city. Would you have any idea on the Napier city?

Not Napier. Enough one this year.

Yes, [ Paul Grant ], again. I'm just a lay person, so I'm trying to figure out where the NPAT's heading? So what I've heard this morning is that the net debt is higher, and the depreciation is going to be bigger and the interest rates are climbing. So I'm just seeing a squeeze on net profit. And ultimately, that would bring a squeeze on the share price. So I understand you're not going to give any more guidance about NPAT, but can you guide us in terms of revenue? A lot of companies give an update on revenue. So where is your first quarter revenue tracking.

So yes, I guess, our guidance of $42 million to $48 million result from operating activities, obviously, is a fairly wide range and reflects the uncertainties that we spoke about. So to some extent, we can't control the outcome. Todd did mention in his presentation that trading for the first 2 months of the year in line with our expectations. So essentially [indiscernible] with our assumptions in that range. I'm not sure we can say too much more about that. Sorry.

Question down the front here, if someone's got a...

Thank you, [ Mark Warren ], Central Hawke's Bay. Peasant farmer, and I'm trying to grow a few pine trees. I note with interest the log debarker, and I know the methyl bromide has been an issue over time. What is the net cost benefit to log growers in terms of cost of utilizing that system. We hear gratefully that BioRich [Indiscernible] harvesting a few tons of the byproduct, and that's excellent. But I imagine that there is some extra costs that stuck in on our cost of log export, but there will be an improvement because we're not shipping back over shore. So that may be a bit of a complicated question, but there's a log grower who's been hit with increasing costs. I'd like to hear a bit of a breakdown, please.

Yes, it's a hard one for us to put a number on it, Mark, for the log exporter as to what you're potentially seeing in terms of lower return as a result of a higher cost because of the debarking operation. Methyl bromide was typically a little bit lower cost. Obviously, there's environmental benefits and health and safety benefits. But there is a benefit, but may be coming to you more indirectly, which is around the fact that the main exporters, [indiscernible] of the world, those sorts of people, now have a better opportunity to finish vessels in Napier and get a better payload and more opportunities to be able to take advantage of a wider range of weather conditions as well, to be able to get logs away on vessels on the top deck. So the actual cost of being able to get a log from New Zealand through to China, which is where most of them go, should actually improve because they're getting held up less coming out of Napier Port. So directly, what that may mean to use as someone selling logs through to one of those exporters, I couldn't put a number on it for you, but there will be indirect benefits.

No further questions?

There are no further questions from shareholders joining online.

Sorry, we've got one more at the back there. It's going to keep digging Kristen.

I do note that -- [ Paul Grant ] again, we've got updates on carbon emissions and that, but very little on financial. As I said, I'm concerned about the squeeze on NPAT. And I've just heard the question from the forestry grower. Where are the areas to control costs or shrink costs? What strategy have you got to put a lid on some costs because I can only see some of those costs going up and up. Are there areas you can bring about some cost reductions?

Yes, it's a good question. And I think there's something that's always a continual focus of ours. We are looking all the time at how we can minimize costs and really squeeze the operation for what we can get through it. Big part of our returns are going to be driven out of volume as well, what sort of volumes we see running through the port. We're at a stage now, we've done a lot of the investment that we think we need to make for some time. And so our focus now is on really utilizing hard what we've developed over the last couple of years. It's a hard environment at the moment to be minimizing cost because, as you all know, costs are going up across the board despite where you look. So it's something we are having to be very vigilant on. And in the future, what we'll be looking at is probably more types of technology that we can bring in to be able to try and automate much more of our business over time. That's also got to be dovetailed into thinking about how we also look at things like emissions reductions as technology develops also. But things like 6 Wharf coming online is helpful. It helps to eliminate some of the extra movements and things like that, that we've been having to do in recent years of accommodating all of the various different types of vessels that create some efficiencies for us. So that's been -- there will be -- come a real boost for us in the future as well. And also just looking at how we use our whole port more effectively and move our resources around and be able to take a much more dynamic, local dynamic approach to deployment of resources across the port. So It's where our focus remains at the moment, but the inflationary environment is tough. Everyone's feeling it. We can pass on and mitigate some of that, but not all of it.

Okay. I think there are no further questions. There are none online. So ladies and gentlemen, we have now come to the formal part of the business. Matters requiring resolution, which are outlined in the Notice of Meeting. Shareholders may ask questions after each formal item has been put forward to the meeting. We will start with questions raised by those in the room before moving to any questions that have been submitted online. Each resolution set out in the Notice of Meeting is to be considered as an ordinary resolution and, as such, must be approved by a simple majority of the votes cast by shareholders entitled to vote and voting on the resolution. Your Board supports each of the resolutions and intends to vote undirected proxies in favor of all resolutions. The outcome of proxy votes will be displayed for your information before voting on all the resolutions. Shareholders on Link's virtual meeting platform will be able to cast their vote using the electronic voting card received when online registration is validated. As detailed earlier, online shareholders will vote by clicking Get a Voting Card in the online meeting platform. Please refer to the online virtual meeting portal guide or use the helpline 0800-200-220, if you require assistance. Online voting will remain open until 5 minutes after the conclusion of the meeting. So resolution 1, I move as an ordinary resolution that Stephen Moir be reelected as a Director of the company. Nonexecutive Independent Director, Stephen Moir retires by rotation in accordance with the provisions of the constitution of the company and being eligible offers himself for reelection. The Board fully supports the reelection of Stephen. I'll now invite Stephen to address the meeting.

Thank you, Alasdair MacLeod, and good morning, everybody. So I'm Stephen Moir. So I put a face to the name. I've been a Board member since 2016, and for my sins, I chair the Audit and Risk Committee. I'm asking you the shareholders to endorse my renewal as a director for another 3 years. Why should you do this? I'm a Hawke's Bay resident and as such, have a pretty good understanding of how the port fits into the economy of Hawke's Bay, driving through the Heretaunga Plains each day shows me just how critical the port is to all those growers and farmers that you pass by. That keeps me very grounded because I know where all that hard work is going and focused on why we're here. Over the last 6 years, I've been an integral part of the IPO that led to the listing of the port. I worked with the finance team to raise the $180 million of bank capital to finance the 6 Wharf Te Whiti construction. And with the rest of the board, oversaw the governance of this hugely successful project. Once we had derisked the project, I was then party to the refinancing of the bank debt through, again, a highly successful bond issue. I do feel I have an in-depth knowledge of the financials, the financial health of the port. Now the task turns to making this rather expensive new piece of infrastructure pay for itself and meet the growing needs of the Bay. That needs commercial and financial acumen at the Board. I'm very keen also to be a part of the transition of the port to earn more environmentally sustainable business. It's not going to be an easy task to pivot from a diesel-driven piece of infrastructure to a carbon-free business. It will take some time, but as was mentioned before, that journey has already started. That's very much a challenge I want to be part of. So I ask you for your endorsement and thank you for listening. And if you have any questions, the questions -- very good.

Do you have any questions for -- question from the back here.

Thank you, Stephen. Good to hear about the [Indiscernible] again. Good to hear about the expertise in the financial capital markets and getting -- Stephen, where do you see revenue growth coming?

Where do I see revenue growth?

Yes. You've been on the board 6 years. Where do you see this revenue can come from?

As we see the disruption in the supply chain improving, and that certainly there are signs on the horizon, we should see greater growth in volume through the port. And the revenue gains will come from leveraging the infrastructure that we've built. 6 Wharf gives us much more capacity than we had before. And as we grow the business through that port, through that wharf, that should have higher marginal returns. And that's really -- it's a very difficult project to run a port where you have to put up upfront infrastructure, which is very expensive. And then gradually, the volume flows grow into that infrastructure, and it takes time. But you've got to make that call upfront just as the colonial powers built the break orders that were out there, and we're now getting the benefits from.

Any further questions for Stephen? are there any online questions?

There are no questions from shareholders joining online.

Thank you very much.

So the proxy votes for the resolution should now be shown on screen. So for those in the room, please mark your voting cards in the way you wish to vote by ticking for, against or abstain in the appropriate place on the voting card. Okay. Moving on to Resolution 2. I move as an ordinary resolution that Kylie Clegg be elected as a Director of the company. Nonexecutive Independent Director, Kylie Clegg, retires in accordance with the company's constitution and the NZX listing rules and being eligible offers herself for election. The board fully supports the election of Kylie. I'll now invite Kylie to address the meeting.

[Foreign Language]. My name is Kylie Clegg, and it's been a real privilege to join the Napier Port Board in August 2022, and work with such talented people across the port. My immediate impression is the pride people have working for Napier Port and their understanding of the port's importance to shareholders, the community in the Hawke's Bay region and to deliver results. I bring a corporate legal background with listed companies and governance experience probably from a New Zealand scale and quite large and complex central and regional governance organizations, as you can see from my bio. The issues that I've faced on those boards that I've sat on, help me contribute here. In particular, around the property and capital infrastructure, the supply chain management, customer insights and stakeholder relations, health and safety and more recently, sustainability. If I'm elected to the Board, I will focus on that constant drive for efficient and productive operations at Napier Port. Sustainability with the aim of leaving a positive legacy for future generations and the health, safety and well-being of our people. I had the pleasure of having a health and safety engagement yesterday in climbing up a crane and it really reinforced me the skilled people we have working at Napier Port but the risks they face every day. So prioritizing safety is paramount to caring for our people. I'm very proud to be part of Napier Port team and would really appreciate the opportunity to contribute to the ongoing success of Napier Port in the Hawke's Bay region, [Foreign Language].

[Foreign Language] Are there any questions for Kylie. Any questions online?

There are no questions from shareholders joining online.

Okay. The proxy votes should now be shown on screen. And again, if you need reminding, mark your voting card and the way in which you wish to vote ticking for, against or abstain. Okay. Moving on to Resolution 3. I move as an ordinary resolution that Dan Druzianic be elected as a Director of the company. Nonexecutive Director, Dan Druzianic, retires in accordance with the company constitution and the NZX listing rules and being eligible offers himself for election. The Board fully support the election of Dan. I'll now invite Dan to address the meeting.

[Foreign Language]. My name is Dan Druzianic, and I'm privilege to be standing here asking for your support for appointment today. My background is in chartered accountancy and business advisory services. I'm a fellow of the Chartered Accountants of Society of New Zealand and Australia. I have over 30 years of commercial experience in the sectors of property, infrastructure, agribusiness, health and service sectors. I joined the Port Board earlier this year at the same time as Kylie. However, my involvement in the business has been for a number of years behind the scenes. I've been close to the business as Chairman of the Hawke's Bay Regional Investment company and I had involvement pre-and post listing of the company in 2019. I'm a member of the Institute of Directors. And these days, I'm a professional director with other current governance roles, including Unison Networks Limited, Bostock New Zealand Limited and I'm a Trustee of the Hawke's Bay Community Fitness Centre Trust, which has built the new aquatic center out on Expressway. I believe I bring to the Board strong commercial skills and importantly, deep local connections in the Hawke's Bay community, both with customers and other stakeholders. I'm excited to be able to support the Napier Port business and its shareholders on the road ahead. Thank you for the opportunity, [Foreign Language].

Are there any questions for Dan? Microphone for the back there.

Yes, [ Paul Grant ] again. I know I'm a broken record. But Dan, do you have any clarification for me on the Board, who is driving or expertise in the marketing revenue side. And whether you yourself feel you can contribute to the Board and that revenue marketing -- I see all the other skills, but I can't see that. I can't hear that today.

We've got a -- Todd, you may want to comment, but we've got a strategic plan to get that volume going again, and we've got a special team with a plan to go out and get -- seek more volume and get that cranking this year.

Yes. I mean I can add a little bit more to that. I mean, actually, as I said in my earlier presentation, we're pretty excited about the future. I think there is some really good prospects. You've got all the tools and the toolkit now to be able to go out and really drive some growth. The growth in the region has been pretty steady. And we can see -- we can go out and touch and feel the trees in the ground, et cetera, and the logs and its pieces are going to come to us. What's really interesting now is what's going on around the rest of the supply chain in New Zealand. And you're starting to see things get fairly congested in up the North Island and people have started to look at alternative ways of entering in and out of the North Island. We're also extending our reach into the Central and Lower North Island, but that's also starting to happen in the Upper as well. So our ability to try and attract more cargo coming through the Napier Port, in and out of the East Coast through Hawke's Bay is prime for us at the moment because you don't overcome infrastructure deficits in a very short time frame. We've got the infrastructure capacity to be able to go and do that now. So I think that's -- we will see the growth and opportunities come in the future. But as Alasdair said as well, these things take time also -- sorry, Stephen saying, you could -- you build these things, they grow, you grow into them. So we'll reap the benefits there in the future. We're ahead of the curve a little in that regard in terms of when you compare it to other ports. So that's where we see the growth coming from both the Hawke's Bay, good, steady reliable growth, good resilient primary sector and then further afield, we're seeing more coming our way. Our logistics service, for example, this time last year or October last year, we're about 64%, 67% up in terms of volume going back and forth between Napier and past the North every day on that train. Started at 6, consistently 18 to 12 [Indiscernible] a day now. So that's where the volume are going to come from. And just add to that, sorry, the cruise industry is also obviously back and big demand there. We've had previous 6 Wharf capped our vessel, limit of about 90 per year. Now the cap is off. So that's where we'll see additional growth coming.

And just to add to your question about on board. So we've got 2 former Port CEOs on our Board, which is not the case across all the other ports in New Zealand. So both of those have got proven track records of growing port businesses revenue. And we've also got a former Vice President of Marketing and International on the Board as well. So strong set of skills there to complement the rest.

Any further questions for Dan? Are there any online questions?

There are no questions from shareholders joining online.

Okay. So the proxy votes for Dan are now shown on screen. And by now, you've all worked out how to use your voting cards. So we'll just rattle on to Resolution 4, which is to authorize directors to fix the auditor's remuneration for the ensuing year. In accordance with Section 70 of the Local Government Act 2002, Napier Port Holdings Limited as a public entity as defined in Section 4 of the Public Audit Act 2001, and in accordance with that Act, the auditor general is the auditor. The Auditor General is appointed Ernst & Young to undertake this audit on its behalf. The proposed resolution authorizes the Board of Directors to fix the remuneration of the auditors for the ensuing year. Are there any questions from the floor regarding this motion? Question at the front here.

Thank you. I'm curious about the word fix. Normally, an auditor would send you the bill and you appear to be implying that you're telling the auditor how much you're going to pay them.

[indiscernible] Kristen?

We do agree with the auditor in advance what we are going to pay them. That's not to say that there are things that happen and change that we may end up adjusting that some, but effectively, we do have an agreement in the past.

I agree. I might be a [ very good alliance ].

Don't Look, Ryan, because the auditors are smiling at the back. Yes. Are there any other questions regarding this motion? If not, the proxy votes should pop up on the screen. And once again, tick the relevant box. Okay. If everyone's filled out their cards, our registry Link Market Services will now move through the room to collect your voting cards. And shareholders attending online may now use this time to submit your electronic voting card or to submit any general business questions you may have. [Voting]

2 more up here. Sorry. I was still busy telling everyone else how to do it. I forgot to do it myself. Okay. That's them all collected. The floor is now open for questions, general business. Can I just remind you that when I when you want to ask a question, please wait for the microphone and then as you probably got into the habit now clearly state your name before asking a question. To be fair to all shareholders, I ask the questions be as concise as possible, and please be considerate to other shareholders wishing to ask questions. We'll take questions from the floor first and then go to our online participants. So general questions from the floor. Got one here.

Yes, [ John Bud ], shareholder. Looking at pictures and a Te Whiti wharf, is there a capacity to grow storage for your logs?

Yes, there's a full wharf, which is pleasing to see. We don't actually want to store the logs. We want to turn over. So we're driving models to see that the logs turn over as fast as possible rather than hold them on board. It looks like the -- when you look at it, it looks like a stagnant and they stayed there for a long time, but actually, the average turn on those logs is about 8 to 9, 10 days in terms of turnover. So we try and drive the model that makes those logs turn as quickly as possible. You'll see other yards around the countryside, what we call surge yards, where we now run out of space on the port, they might hold them there and then bring them into the port from there. And obviously, those are dotted around both Napier and further afield as well. So yes, that is a challenge to make sure that we can turn those logs over as much as we can.

A question up towards the back there.

Yes. Do the cruise ships still pay even if they by pass?

Great question.

It depends on the time frame, we do have a cancellation policy with the cruise ships. Typically, the cruise ships are booked 2, 3 years out and the passengers on board don't want to miss the opportunity to call them to Napier. So they're very reluctant to cancel or not come through once they've booked them. We might get a cancellation every now and again. We've had 1 this year really just a pure cancellation that was as a result of weather up in [indiscernible]. The big ovation and sees couldn't come through. But it will only be a weather event, a thing like that. Normally, it would mean that we're not cool. But if they cancel within, I think that was a 3 weeks, 4 weeks, I forget now, 30 days. There's a cancellation fee for them because obviously there's a lot of resources deployed to be able to get ready for our vessels arrival. We carry some costs there. So we recoup some of that cost if they do cancel, but it's very rare.

[indiscernible]

[Indiscernible] could you just ask it again, please?

How does the weather affect that?

Yes. As I said, that's probably one of the main reasons of cruise vessel or particularly any type of vessel would miss its call. At Napier it may because of our adverse weather events. So whether it's a big swell or a particularly windy day. We do get a couple of those. We have had one of those already this cruise season. One vessel missed its call because of weather issue.

A question over here. Yes.

[Indiscernible]. What sort of revenue does the cruise liners bring in?

Traditionally, cruises represents about 3% to 5% of our total revenues.

Any other questions from the floor? Have we got any online? I've got 2 submitted in advance, but are there any online?

There are no further questions from shareholders joining online.

So we got a question that was submitted earlier from Stephen [Indiscernible]. Can Napier Port Holdings consider a dividend reinvestment plan for future dividends. The short answer is we don't need to at the moment. I've got no intention of doing that in the short term. We don't need the additional equity. But it's clearly an option that is available if required. And [ A.J. Twigg ] asked, why not put Napier Port forward to be the new Auckland port? I would be great for my investment in Napier Port. It would be great for everybody, really. I think seriously, as Todd identified earlier, the fact that we have invested in capacity means that we can do a lot more now to relieve congestion through the Upper North Island and potentially the Lower and Central North Island as well. So we will be doing everything we possibly can to assist, relieve the stresses in Auckland and Tauranga and Center port. Okay. These were the questions. So I'm just going to give you some final comments. Over the past 8 years, I've had the opportunity to meet nearly everyone who makes Napier Port work, and it's been an absolute privilege. Getting to spend time with mechanics, electricians, crane drivers, forklift drivers and pilots as well as administrative staff and management has filled me with pride in the people that we have -- that extends to the Board as well. I hope the region realizes what a talented and committed Board we have at Napier Port. They are collegial, clever, capable and occasionally challenging team of individuals who are collectively amazing. I've never worked with a better team, and I know Napier Port is in good hands. I'd like to formally welcome Kylie Clegg and Dan Druzianic to the Board. Their combined legal and commercial acumen leadership and governance experience across a wide range of sectors, adds great value to Napier Port. I'd also like to explain the sincere thanks to the honorable Rick Barker, who is also retiring as a Director today. Rick joined the Napier Port Board in 2019 as a non-independent director. He's been a hugely valuable member of the Board. He's contributed significantly to the development of our Sustainability Committee, our focus on health and safety and always with a strong commitment to our region and its people. And in fact, if Rick would like to say a few words, the microphone is open. I have to say -- the words Rick and few words in the same sentence have never appeared before and may never appear again.

Thank you, Alasdair. Just to say that an open mic in a full room captured audience is very attractive, but I'll resist the temptation. Could I start by and signing out by looking at where I signed in. I signed in because we were at the Regional Counsel looking at our capital structure and concerned about how the council could do its work for the future -- for the benefit of its region. Into stage, right, Alasdair and Todd, who said they needed a new wharf. This wasn't quite on our agenda, and they were convincing. Then came to how we're going to pay for it and loading $100 million plus underrate payers were seen as unacceptable. Rex Graham to his credit came up with the idea of an IPO, and so we floated. And I want to congratulate Alasdair, Todd, Dan and Blair and all those others who made a very successful float. Haven't got the money, we then had to go and build a wharf. And I want to congratulate the team who built the wharf. Todd and Mike De Vos and all the rest did an outstanding job. So now we have a better balance sheet for the regional council. We have a better piece of infrastructure for Hawke's Bay and the rate payer isn't loaded with extra debt. This is a pretty credible performance. So it's time for me to sign out. And I just want to acknowledge, firstly, the staff of the port. I've been on the port, and it is a remarkable team you have there, dedicated, committed and they are a team Hawke's Bay could be proud of them. I've also had great experiences with the executive team. Again, a very talented team, and the region can be very proud of them. I've also had experiences over the Port Board and learned a lot your governance team is outstanding, and I have no reservations whatsoever. So to the rate payers, I can say you've got an outstanding asset here doing what it needs to do to connect Hawke's Bay to the world, which it does really well for the growth and the prosperity of this region. I have learned a lot. And one of the things I have learned is this that I think the Port Board is best served by having independent directors. I am the first, I think only a council member who has been a Director of the Port. And I do know that you can't hold yourself to account. So I just think having independent directors is a really important lesson to learn for the future. So all the lessons you've taught me. Thank you very much. And I've told my kids that this is my midpoint of my working career, I'm signing out. And for those of you who can see the signs, it is not going to involve politics. So this is unplugged or unhinged. You choose, Rick Barker proceeding to the background. Thank you, everybody, all the best and wishes.

Thank you, Rick. Rick has genuinely made every Board meeting a pleasure, hugely entertaining but enormously focused on doing the right thing for the port and the region. I just wanted to talk briefly about some of the highlights over the last 8 years as Chair. First, our focus on health and safety. We're not perfect, but we constantly focus on getting people home safely from the port every day and every night. Hiring Todd Dawson, the right person at the right time to build on the legacy nurtured by Garth Cowie. Being part of the IPO process from beginning to end, it was one of the most challenging processes I've ever been involved in, and one of the more satisfying to help bring to a successful conclusion. Being here through the Te Whiti process from initial design to successful completion. As a former civil engineer, I probably poked my nose in more than any good governor should, but I have no regrets. And the final highlight for me was encouraging Blair O'Keeffe to succeed me as chair. Everyone should aspire to find someone brighter and better than them to succeed them. While it's obviously easier for me than for many, I'm delighted to be handing the baton on to someone who's massively talented as Blair. I've loved every minute of my 8 years as Chair of Napier Port, and it will remain a place dear to my heart. My sincere thanks go to the former chairs of the Hawke's Bay Regional Council, Fenton Wilson, Rex Graham, and Rick Barker. All 3 chairs have been rock solid in support of Napier Port, and we're delighted to continue that relationship with Hinewai Ormsby. Thank you to our shareholders and the whole team for what they deliver every day for our region and to my colleagues for entrusting me with a chair role during my time on the board. There's only one thing I will not miss about Napier Port and it's having an annual shareholder meeting the week before Christmas. I'm not going to miss this at all. [Foreign Language] My strength is not that of an individual, but that of many. And that brings me to my final duty as Chair of Napier Port, formally welcoming my chair successor, Blair O’Keeffe, I got to know Blair really well during the IPO process and developed an enormous respect for his capacity, his intelligence and just sheer decency. So it is a genuine pleasure to hand over to the charming and talented Blair O’Keeffe.

[Foreign Language] Thanks, Alasdair, and good morning to our shareholders. On behalf of the entire team at Napier Port, the Board of Directors and you, I'd like to thank Rick and Alasdair for their combined years of service. Rick, you've been a tremendous steward for the region and an excellent director on the port, as Alasdair has outlined, go well, my good friend, being unhinged. As Todd said, Alasdair has been driving force behind many of Napier Port's achievements over his tenure. His leadership has steered us through some of the most challenging times we've experienced and as a business, he's also created many opportunities, and we are stronger as a company and as a region because of this. You've been a great leader, a close colleague and a very good friend, and we will miss your presence. It's been my pleasure to work with our team over the last few years, having been heavily involved in the listing process and the stewardship of the company since then. We've established, as you've heard today, a very solid base, comprising infrastructure, people, systems and processes. Stepping into the Chair role today, I feel a healthy weight of responsibility and positivity. With a strong foundation, we must now leverage our investments and position to open up growth opportunities for Napier Port, our customers and our region. To reinforce Todd's comments, we're in a great position to release the pressure being felt across the national supply chain. Our investments are delivering wharf capacity, road and rail services, cargo handling equipment, shipping options, meaning we are very well placed to serve the needs of our region and wider New Zealand as the port system across New Zealand struggles for capacity and looks set to do so for some time. As incoming chair, my leadership commitment to you is one of strong values and a culture of care for Napier Port's people and all of its stakeholders. This includes delivering on economic, social and governance expectations of our shareholders, which I will endeavor to achieve through strong open relationships and a dialogue between board and management and through diversity of thinking at both the Board and executive table. On that note, it's my pleasure today to conclude the Annual Shareholder Meeting for the 2022 financial year. On behalf of the Board, I extend our thanks to all our shareholders, our business partners, our community and the cargo owners who entrust their product in Napier Port every day. And to the entire team at Napier Port, led by an excellent senior management team. You continue to bring your best to work every day facing whatever the day brings, every day is different with an unflappable commitment and resolve to do what's right and get done what needs to be done. As I call the meeting to a close, I'd like to invite you all to light refreshments in the exhibition hall next door. We also have some of our people available to answer your questions about port operations. And of course, all of the Board is here and available for you to talk to you afterwards as well. At 12:00, you're welcome to take the complementary bus tour of the port, and that will return here after about 20 minutes. As a reminder, as Alasdair pointed out earlier, if you haven't put your name down when you registered, please see Chris, over here, and he will ensure you're on the list before the bus departs. Due to customs requirements, it is a legal requirement that you have your photo ID on you. So hopefully, you brought that with you. Thank you for coming today, and thank you for your continued support of Napier Port, [Foreign Language]. Thank you.