Stevedoring Services Limited has suffered a drop of more than two thirds in its yearly profits.

Net earnings for the fiscal year that ended on March 31 were $327,546 (26 cents per share), down from $1,187,959 (95 cents per share) for the 2006 fiscal year.

The company also announced a 50 percent reduction in the quarterly dividend to five cents per share due to restructuring costs involving the imminent closure of the LCL (Less than Container Load) operations at the number seven Cargo Terminal along with increased costs of operations on the docks.

The reduction of the dividend is reflective of the additional costs that the company is facing, not only with the closure of the LCL operation, but also additional expenses imposed in the Terminal Operators Agreement, such as a Terminal Operators Licensing Fee along with other expenses for services previously provided by the Corporation of Hamilton.

Cargo volumes have increased barely one percent over the preceding year, while expenses have continued to rise at an unprecedented rate. These additional expenses will require an increase in rates to the shipping lines at some time in the future so as to not only return the company to a level previously experienced in the past, but also to allow for future investment in expensive equipment necessary for efficient dock operations.

The closure of the LCL operation at the number seven Cargo Terminal will take place in at the end of 2007 and will effectively mean that all cargo previously "stripped" on the docks will be transferred inland to facilities operated by the freight forwarders themselves or their appointed agents. Thus, the Hamilton docks will effectively become strictly a container port.