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Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
Port Projects Funding After The Crisis   Toc Americas, Rio Nov 2010
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Port Projects Funding After The Crisis Toc Americas, Rio Nov 2010

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Presenting the current situation of financing of port projects, with focus on Latin America and Caribbean

Presenting the current situation of financing of port projects, with focus on Latin America and Caribbean

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  • 1. 1 Port projects funding after the crisis - TOC Americas 2010 – Rio de Janeiro 9-11 November Michel Donner Port & Maritime Transport Consultant
  • 2. Michel Donner, Port & Maritime Transport Consultant 2 Contents  Role of the port industry  Trade rebound  Congestion knocking at the door ?  Financing : less abundant, more expensive  Private capital flows to developing countries  Endangered concessions  Attracting finance for port projects
  • 3. Michel Donner, Port & Maritime Transport Consultant 3 Role of the port industry  To serve the international trade of the Country, incarnated by: • The Citizen (local and national) • The Consumer • The Economy • The Exporter • The Importer  Providing them with port services and capacity in time and in terms of quantity, quality, efficiency and cost  Enabling the national products to compete on the exterior markets on a “level playing field” or better.
  • 4. Michel Donner, Port & Maritime Transport Consultant 4 Trade rebound Merchandise exports, percent change Source : Global Economic Prospects 10 Jun 2010 – World Bank
  • 5. Michel Donner, Port & Maritime Transport Consultant 5 Volumes are back to 2008 level 0 100000 200000 300000 400000 500000 600000 700000 800000 900000 1000000 deepseafullTEUJan-Jul source Datamar Brazil deepsea full TEU volumes Jan-Jul 2008 2009 2010
  • 6. Michel Donner, Port & Maritime Transport Consultant 6 And so are the ships… and congestion Source: Datamar AIS 3 Aug.2010
  • 7. Michel Donner, Port & Maritime Transport Consultant 7 And so are the ships… and congestion (2) Source: Datamar AIS 3 Aug.2010
  • 8. Michel Donner, Port & Maritime Transport Consultant 8 Berthing delays 13 13 11 7 58 12 18 6 0 10 20 30 40 50 60 70 Santos Santos (2) Paranagua Rio Grande Averagewaitinghours Berthing delays - Brazil 2008-2010 (containerships) 2008 2010
  • 9. Michel Donner, Port & Maritime Transport Consultant 9 Berthing delays -6,0 -5,0 -4,0 -3,0 -2,0 -1,0 0,0 daysonroads 1 - 21 Oct average 2.4 days Santos berthing delays 72 vessel calls
  • 10. Michel Donner, Port & Maritime Transport Consultant 10 Berthing delays 0,0 0,5 1,0 1,5 2,0 2,5 Berthingtime(days) 1 - 21 Oct avg 18hrs Paranagua berthing delays 41 vessels
  • 11. Michel Donner, Port & Maritime Transport Consultant 11 Berthing delays 0,0 5,0 10,0 15,0 20,0 25,0 30,0 35,0 Timeforberthing(hrs) 1 - 21 Oct average 6 hrs/call RGR berthing delays 52 calls
  • 12. Not enough ? … too late ? Michel Donner, Port & Maritime Transport Consultant 12 Upcoming additional capacity Santos Libra 300m quay 2011 Santos BTP I 1,1 mio teu/y 2013 Santos Embraport I 0,4 mio teu/y 2012 Itapoa (SC) TSC I 0,3 mio teu/y 2010
  • 13. Portos, em busca de soluções 13 Regiões com problemas de capacidade 2008 Source : Drewry
  • 14. Michel Donner, Port & Maritime Transport Consultant 14 Regions with port capacity problems 2010 Source :Drewry and own research
  • 15. Michel Donner, Port & Maritime Transport Consultant 15 Less financial capital available, more expensive  increased debt of high-income countries  public sector financing needs in high-income countries  competition for funds is increasing the cost of borrowing  banks need to rebuild their balance sheets  increased risk aversion on the part of investors
  • 16. Michel Donner, Port & Maritime Transport Consultant 16 Foreign direct investment flows (FDI) 0 100 200 300 400 500 600 700 2004 5 6 7 8 9 10 11 2012 $bn Source : World Bank June 2010 Foreign Direct Investments flows to Developing Countries FDI flows, $ b
  • 17. Michel Donner, Port & Maritime Transport Consultant 17 Net private capital inflows to Developing Countries will stage a modest recovery Source : Global Economic Prospects 10 Jun 2010 – World Bank
  • 18. Michel Donner, Port & Maritime Transport Consultant 18 Map of Endangered concessions 2 concessionnaires breaking camp Tender prequalification conditions unclear, now under Congress/Government review Endangered terminal concessions Resistance by existing concessionnaires $ 105 mio. terminal without concessionnaire since 2 years Only one bidder nationalisation Port congestion; Uneven playing field; complex environmental approval procedures No bidder; incumbent concessionnaire threatening lawsuit
  • 19. Michel Donner, Port & Maritime Transport Consultant 19 Attracting financing for port development projects  Non-traditional investors (ex. Pension funds, hedge funds) as well as commercial lenders have, mostly, left the scene, time-being. There are signs that some might start showing renewed interest, though.  It is still necessary to look for private investors because public funding is also under pressure.  Public-Private Partnerships (PPP) and the Landlord model remain the most adequate vehicle.  Operators remain the same, but, due much tighter financing availability, as well as for their own protection, they are much more cautious.
  • 20. Michel Donner, Port & Maritime Transport Consultant 20 Attracting financing for port development projects (ctd)  Over-ambitious or ill-timed public tenders run the risk to find few candidates  Difficulties encountered by ongoing concession projects in the region scare investors away  Port projects can take from 5 to 10 years to be commissioned  Risk aversion can be mitigated and overcome by:  Clear rules  regulation through contract  Alignment of respective goals & strategies  Level playing field.
  • 21. Michel Donner, Port & Maritime Transport Consultant 21 Conclusion  Trade volumes recovery outpacing financing availability  Congestion is back in the same places as before the crisis  To fully play the role assigned to a country’s port system in terms of timely capacity development, Authorities need today to go out of their way to propose and facilitate the right projects that will attract the right private investors and operators.
  • 22. Michel Donner, Port & Maritime Transport Consultant 22 Thank you very much for your attention Illustration : Thierry Cap de Coume
  • 23. Michel Donner, Port & Maritime Transport Consultant 23 Post Scriptum I would like to make a final statement : One may agree or disagree with the policies implemented by SEP, but the singlemost decisive achievement made under the tenure of Minister Brito is the completion of the program of dredging and deepening of the Brasilian ports. This remarkable advance will change the landscape of the South Atlantic commercial navigation, and should go down in history as a decisive accomplishment. The coming generations of the Brasilian port, trade and maritime communities will remain thankful.

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