Accelerating Infrastructure Development no FP


Published on

Published in: Business, Economy & Finance
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Accelerating Infrastructure Development no FP

  1. 1. Why is this important? Because ports are natural growth engines for their respective economies around the world. And the world needs economic growth more than ever. Because the potential is tremendous for more development. Trillions of dollars, thousands of operators, developers, cargo owners, and hundreds of concepts and models. Whichever way you measure it, the potential is huge. Because the challenge is substantial. Most have little appreciation for what infrastructure investing is about let alone port infrastructure and decision makers are scattered all around the
  2. 2. What is Port Investor doing about it? The Port Investor community has hundreds of ports, investors, operators, developers, cargo owners and thousands of decision makers. With our initiative to accelerate port development around the globe we want to:  Expose you to the right people with the right proposition  Create commitment and engagement with high value constituents to cooperate  Deliver a platform that fast-tracks cooperation from engagement to investment  Establish a continuous process that keeps producing new opportunities This is really about leverage and effectiveness. Every port has its own valuable market, customers, skills and leadership to move forward. This is about leveraging that in the most effective and complimentary manner. Finally, all ports have existing relations and activities to develop, this is not a replacement for that, we only wish to accelerate not
  3. 3. A brief outline of what comes next… The Potential Covers the vast potential for ports to attract customers, partners and investors as well as fast-tracking development and expanding scope The Challenge Covers the challenges to tap this potential including global coverage and how decision makers discriminate The Solution Lays out the Port Investor solution explained as a simple 5-step process  Step 0 – foundation  Step 1 – exposure  Step 2 – engagement  Step 3 – development  Step 4 –
  4. 4. The Potential To Attract new To Tap the global customers, investors investment sector and partners and the appetite for port infrastructure To Develop new To Collaborate with and expand and create existing collaboration segments, footprin between t and concepts operators, develope rs, investors etc. To Fast-track and achieve your 10-year vision
  5. 5. The Potential… …to attract OPERATORS PARTNERS CARGO OWNERS Container terminal South American ports Container shipping Oil and liquid terminal Asian ports Oil shipping Bulk terminal European ports Bulk shipping Free zones Middle Eastern ports Mineral companies Logistic zones Etc. Energy companies Port property Agriculture companies Etc. Etc. DEVELOPERS NEW: FUNDS Construction Marine infrastructure Investors Pension funds Insurance funds Economic zones Port industry zones Customers Private equity funds Sovereign wealth funds Port logistic zones Etc. Partners Seed investors
  6. 6. The Potential… …to develop Port zones are natural Port Property Dry Port Oil Storage growth engines for the economy. The potential to develop and expand to Bio Cruise generate economic Fuel growth and trade for most Logistic ports far exceeds their Bulk Zone current footprint. Trade Energy This includes the Hub Hub development of trade hub, free zone, industry zone and other concepts. Intermodal Hub Free Zone In-Port
  7. 7. Too big, too risky, too early, too complex… Many The Potential… projects and investment opportunities have never made it into the real world simply because the …to collaborate right match or collaborative model could not be found. Greenfield MATCHING $1bn Over the course of a port infrastructure project • Private Equity the nature of the investment changes from stage • Construction Development Company Port Group to stage. Investors (as well as operators and developers) all have different preferences, some Oil are more suitable for green-field whereas others • Investment Operator look for mature facilities. Likewise each Fund Growth • Operator constituent brings its own set of strengths and Container skills to the table that amongst others can allow Operator the undertaking of larger projects. • Pension Fund Bulk Maturity Operator SYNGERGIZING (1 + 1 = 3) Ultimately this is all about finding synergies Investment between parties with different skills and needs to Fund accelerate development that may not otherwise have been possible or less
  8. 8. The Potential… …to tap into the global investment sector The global investment fund INVESTMENT FUNDS AND PRIVATE EQUITY sector manages more than Macquarie Infrastructure Group $100 trillion. Many want to Brookfield Infrastructure Partners “get real” (assets) and “go JP Morgan Infrastructure Fund direct” (ownership) - they Citi Capital Advisors want real assets with real purpose. Ports are in an ideal SOVEREIGN FUNDS position to tap into that. Abu Dhabi Investment Authority China Investment Corporation However, the investment Government of Singapore Investment Corporation sector is hard to navigate Malaysia Mining Corporation and gets bombarded with investment proposals. The PENSION AND INSURANCE FUNDS potential lies in getting the Ping An (2nd biggest Chinese insurance fund) right exposure to the right Ontario Teachers Pension Fund people with the right ATP (biggest Danish fund) proposition. APG (biggest Dutch fund, 3rd biggest globally)
  9. 9. The Potential… What difference would it make if you were where you are now 10 years ago? Where …to fast-track would that put you today? Some of the common answers are: BIGGER Our port zone would have a much bigger footprint with substantial more activity and impact to the economy. BETTER We would be in a much better position to service our customers. CLEANER Better use of resources, a more connected infrastructure and newer technology would have allowed us to be substantially cleaner. Investments in port infrastructure are very important and often more cumbersome than investments in other sectors. This however does not mean they have to take years, with the right process, connections and knowledge they can be fast-tracked by several years. This is about the potential to reach your 10-year goal
  10. 10. The Challenge Ports are by nature local Investors, operators, developers, cargo owners etc are global - there are thousands and they are spread all across the
  11. 11. The Challenge is very real because… …the world is a big place 7 continents 24 time zones > 50 common languages 193 countries 1,000+ investors 5,000+ ports 50,000+ decision
  12. 12. The Challenge is very real because… …decision makers discriminate BUT YOU CAN’T BLAME THEM, WE ALL: “I suggest we send a team … we have heard of substantial port development opportunities there!” Like what we know “What is it going to cost? What Like what is close to us are you going to achieve? Does it fit the strategy? Should you focus Like what is easy elsewhere?” Like what is in-expensive “I can’t really tell you before I have been there…” Like what takes little time “Make a paper to outline all the Like what is easily justifiable key variables, the project cost and the potential return, then we can Like what is fast and effortless review…”
  13. 13. Our solution… …bring the world to you GLOBAL EXPOSURE FOR PORTS An exclusive platform that allows a port to Shipping lines Asia develop investment propositions and Industrials Latin America opportunities with invited Fabrication Middle East investors, operators, developers, cargo owners etc CARGO OWNERS PORT PARTNERS FOCUSED AND CONFIDENTIAL Invitees sign NDA’s before gaining access to an online data room and forum to create win/win constellations usually exploring opportunities DEVELOPMENT with 5-10 other invitees SYNERGISTIC AND RESULT-ORIENTED DEVELOPERS INVESTORS OPERATORS Invitees gain access to a synergistic environment with exclusivity and support Free Zone Pension Fund Container Marine Infra. Private Equity Oil & Liquid IMMEDIATE INVESTMENT POTENTIAL Dry Bulk Invitees can at any time decide to proceed with Construction Sovereign Fund an exploration agreement for a specific proposition directly with the port and/or with other
  14. 14. APPENDIX Building your own pyramid of opportunities (the following slides are purely for illustration purposes - it is just one of the many ways)
  15. 15. Our solution… Step 4 Deal Closing the deal …an overview $1bn Develop Step 3 Deal development 10-20 Step 2 Engage Engage the most relevant 50-100 Step 1 Exposure Get exposure to thousands 1,000-5,000 Step 0 Purpose Target Proposition Create the
  16. 16. Step 0… …defining purpose Question: What is the purpose? Why are you looking for customers, partners and investors? Example: Expanding the port area to stimulate economy and trade in the region. The preference is for….
  17. 17. Step 0… …identifying the target Question: Who are you targeting as customers, partners and investors and how would you ideally like to see them invest and cooperate? Example: We are looking for 1 new oil storage operator, 50% increase of the bio fuel developed area etc. We expect this to require a Purpose Target total of 3,000m of quay, 400ha and between €1-2
  18. 18. Step 0… …creating the proposition Question: With the target investors in mind what is your proposition to them? Why should they invest in your port? Example: Highlighting all the key market, investment and concession-related items for each investor type e.g. one specialized for oil, one for bio fuel etc. Purpose Target
  19. 19. Step 1… Deal …exposure This is about creating Develop awareness, getting your proposition out there in the right form Expose and Engage Exposure 1,000-5,000 Purpose Target
  20. 20. Step 1… …exposure Dedicated space on Proposition and related Network alerted network website port- material uploaded Exposure to thousands of investors, operators, developers and cargo owners will create the foundation for a wide pull
  21. 21. Step 2… Deal …engagement This is about creating Develop true engagement – a website or commercial that is available for everyone to read will Engage not do that. 50-100 Investors, operators, de Expose velopers and cargo owners only take the 1,000-5,000 time to get involved with projects where they feel chosen and see commitment from Purpose Target Proposition the other
  22. 22. Step 2… …engage Based on market interest NDA is signed Exclusive platform is and careful selection populated with data and 5-10 investors are engaged initial propositions based to gauge interest on market feedback Pull from network and non-network members as well as carefully selected connections create base for initial 5-10 serious potential
  23. 23. Step 3… Deal …development This is about fast- Develop tracking and developing real opportunities with 10-20 investors, operators, de velopers, cargo owners Engage etc. 50-100 This requires creating a Expose frame that gives all sides the tools and trust 1,000-5,000 to get real intentions on the table and talk specific options. Purpose Target
  24. 24. Step 4… Deal …deal $1bn Any party that has decided Develop to go ahead and invest will continue separately outside 10-20 the platform. They now know you, the Engage market and their preferred 50-100 options. Deals can close quickly. Expose 1,000-5,000 Purpose Target