InduStreams and Port Investor


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December 2011 version

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InduStreams and Port Investor

  1. 1. InduStreamsRethinking infrastructure markets
  2. 2. HistoryInduStreams was founded in 2011 with a mission to createa more transparent, connected and informedinfrastructure market place.We launched Port Investor in July 2011, a specific sectorpilot with focus on port investing and the global portindustry.
  3. 3. The Vision UNLEASHThe full potential of each port group and market. There is morethan $1 Trillion in unrealised investment potential. We want toenable an explosion in investment activity. CONNECTAll important port markets with investors and industry players.Together, there are more than 5,000 globally. EMPOWERThe market by creating new ways and models for investors andports to come together
  4. 4. Status - InduStreams InduStreams ultimate scope Infrastructure spans the entire infrastructure sector and beyond. With Port Investor we have a strong base in the infrastructure sector and are already now branching into other transportation segments such as Port Other Energy & Social airports, social Etc.Infrastructure Transportation Renewables Infrastructure infrastructure and energy and renewables related.
  5. 5. Status – Port Investor 200+ port groups and 1,000+ investors and executives in the community and increasing China Port Investor and other regions are being launched launched Port Investor LinkedIn group launched (300+ members) Advisers for China, Europe and Latin America in place already More than 50 concepts and services in development with select investors and port groups
  6. 6. Traditional Approach Our ApproachLeads from media/promoters – Early engagement focused onyou have no edge development not peddling“Take it or leave it” – Develop opportunities to fityou have no influence buyer and sellerShort deadlines – VS. Long-term commitment toyou have no time exploration, deep understandingMatch-making – Concepts that leverage youryou have no leverage proposition in the market
  7. 7. Port Investor is unleashing the untappedglobal potential of port development…
  8. 8. The port infrastructure sector has tremendous untapped potential… Most port markets have Port Property Dry Port Oil Storage substantial potential to develop beyond basic port Bio Cruise infrastructure Fuel 100s of operators, developers Logistic Bulk Zone and cargo owners want ports to develop their business Trade Energy Hub Hub More than $1 trillion of funds are seeking a home in this sector. Intermodal Hub Free Zone In-Port Industries Ports and projects need funding of $1+ trillion
  9. 9. The port infrastructure sector has tremendous untapped potential… …BUT also has tremendous challenges…1. The market is non transparent. Illuminating it will require thousands of constituents to come together and share insight and knowledge2. The market is not connected. Connecting it will require all sides of the market place to reach out and be part of the community3. The market is stale. Empowering it will require mass- collaboration in ways previously unheard of in this sector
  10. 10. Port Investor is unleashing the untappedglobal potential of port development……by addressing the challenges
  11. 11. By addressing challenges… …for ports and project owners specifically Developing a platform for growth and seeking investors requires: 10,000 Tens of 1,000 Thousands of thousands of connections 1. Continuous dialogue with the market investors place to build attractive development opportunities 100 Hundreds of 2. Formulating a solid proposition that investment models can be understood by infrastructure investors 3. Exposure to the market place 4. A focused process to create win/win partnerships and investor relations Matching propositionsMany ports hope they can skip building a platform for growth. It’san illusion. Only ports with a strong growth platform will excel.
  12. 12. By addressing challenges… …for investors, operators and users specificallyFinding great investments consistentlyrequires great processes: 50,000 Tens of1. The quality of the output is determined by 5,000 thousands Thousands of targets the input – poor market scanning and of markets market intelligence leads to poor leads 5002. The larger the market platform and the Hundreds of investment more opportunities it is engaged with the models larger the pipeline3. Only a few of the potential market targets will end up as deals - without a substantial pipeline no deals Matching propositionsMany investors hope they can skip building great processes. It’s anillusion. The deals you get access to are only as good as your pipeline.
  13. 13. By addressing challenges… …for the market place in general Deal Attracting investments or investors $1 – $2 billion requires building the deal pyramid. Deal Development An approach that skips the bottom $3 – $5 billion and goes straight to deals will usually Engagement and not generate valuable deals Leads $30 – $50 billion Scanning and Intelligence$300 – $500 billion
  14. 14. By addressing challenges… …for the market place in generalLack of scale, structure and focus to build an effective intelligencebase to scan and understand the market – without it the rest ofthe process will be like “flying blind”There are plenty of interested investors and ports out there, butthey require regular and early engagementAll investors and ports will require significant exploration as thedeal develops beyond just show of interestIf you are looking to create $1 - $2 billion worth of investmentsyou likely need access to a larger number of investors and portswith $100+ billion available for investing
  15. 15. Port Investor is unleashing the untappedglobal potential of port development……by addressing the challenges…by creating an open model – the foundation
  16. 16. Wikinomics is a reality of the 21st century – still many hold on toarcane models based on withholding information and competingin the same space as all the rest.Only an open model that provides for a transparent, connectedand informed market place will be able to un-tap the vastpotential this sector has. Anything less will at best only makesmall dents and worst case shrink the sector.
  17. 17. An open model means a free and valuable industry communitywith easy access to other relevant members.An open model means free access to relevant and valuableinformation.An open model means free access to tell your story and the freeflow of information.
  18. 18. The open model provides the foundation for all constituentsof the market place to build their own pyramids… Deal Deal Deal Deal Deal $1 – $2 billion $1 – $2 billion $1 – $2 billion $1 – $2 billion $1 – $2 billion Deal Deal Deal Deal Deal Development Development Development Development Development $3 – $5 billion $3 – $5 billion $3 – $5 billion $3 – $5 billion $3 – $5 billion Engagement and Engagement and Engagement and Engagement and Engagement and Leads Leads Leads Leads Leads $30 – $50 billion $30 – $50 billion $30 – $50 billion $30 – $50 billion $30 – $50 billion Scanning and Intelligence Scanning and Intelligence Scanning and Intelligence Scanning and Intelligence Scanning and Intelligence$300 – $500 billion $300 – $500 billion $300 – $500 billion $300 – $500 billion $300 – $500 billion …which ultimately requires thousands of connections and transparency in the market place.
  19. 19. Port Investor is unleashing the untappedglobal potential of port development……by addressing the challenges…by creating an open model – the foundation…by making the right structure – the pyramid
  20. 20. Step 1 Step 2Investment target and Market engagement andtime horizon, e.g. $2 creation of leads that arebillion over 5 years. attractive to theDesigning the process investor or port infrom proposition question.development, constituentfocus through market Dealengagement, exploration Step 4and securing Explorationthe investment. Step 3 Market Engagement and Leads Step 2 Creating the Platform Focusing the Proposition Step 1
  21. 21. Step 3 Step 4Securing exploration Getting from exploration toagreements with investors commitmentor ports to ensure a serious – getting to goal!and committed process. Deal Step 4 Exploration Step 3 Market Engagement and Leads Step 2 Creating the Platform Focusing the Proposition Step 1
  22. 22. Port Investor is unleashing the untappedglobal potential of port development……by addressing the challenges…by creating an open model – the foundation…by making the right structure – the pyramid…by building new models
  23. 23. PORTS AND PROJECT OWNERS new models and scanning Market intelligence requireAND SOURCE INDUSTRIES and Engagement new ways of AND DEVELOPERS CARGO OWNERS Development OPERATORS Market intelligence Market intelligence Deal and Engagement and Engagement connecting Development and scanning and scanning Development Deal Deal and engaging Deal Development the different and Engagement sides Market intelligence and scanning of the market place INVESTORS Investors
  24. 24. IMMEDIATE COVERAGE FORINVESTORSFor those with an interest to The PI Consortium©enter, expand or invest in a specific A new modelregion (e.g. China) and covering allthe key markets within months. for investors, developers and operatorsREAL ENGAGEMENT Shipping lines AsiaOur on the ground network directly Industrials Latin Americaengages the local decision makers Fabrication Middle EastCOMPLEMENTARY CARGO OWNERS PORT PARTNERSA group of leading firms withcomplementary skills and objectivesenabling a strong proposition CONSORTIUMtowards ports.SYNERGISTIC AND NO RISK DEVELOPERS INVESTORS OPERATORSNo heavy regional setup or localoffice before you start running – Free Zone Pension Fund Containercost levels that would otherwise Marine Infra. Private Equity Oil & Liquidonly buy desk researched market Construction Sovereign Fund Dry Bulkreports
  25. 25. GLOBAL EXPOSURE FOR PORTS An exclusive platform that allows a port to develop investment Port Development 2.0© propositions and opportunities with A new model invited investors, operators, developers, cargo for ports and project owners owners etc Shipping lines Asia FOCUSED AND CONFIDENTIAL Industrials Latin America Invitees sign NDAs before gaining Fabrication Middle East access to an online data room and forum to create win/win constellations CARGO OWNERS PORT PARTNERS usually exploring opportunities with 5- 10 other invitees PORT DEVELOPMENT SYNERGISTIC AND RESULT ORIENTED Invitees gain access to a synergistic environment with exclusivity andDEVELOPERS INVESTORS OPERATORS supportFree Zone Pension Fund Container IMMEDIATE INVESTMENT POTENTIALMarine Infra. Private Equity Oil & Liquid Invitees can at any time decide toConstruction Sovereign Fund Dry Bulk proceed with an exploration agreement for a specific proposition directly with the port and/or with other members
  26. 26. Port Investor is unleashing the untappedglobal potential of port development……by addressing the challenges…by creating an open model – the foundation…by making the right structure – the pyramid…by building new models…by empowering you!
  27. 27. …what a difference a deal makes… “We have worked in positions requiring 100 million dollar deals to becut every year - it’s excruciating - the constant pressure of the scorecard wears you down.But it does not have to be that way - Port Investor is just as much about making investing a fun, creative and effective process for the individuals making a professional career out of it as it is about unleashing potential. Getting connected, engaged and focused around your own deal pyramid can get you that deal that may make all the difference.” Michael Moller Michael Pomerleau Partner Partner Port Investor Port Investor
  28. 28. Start building your own pyramid! We are here to assist when you are ready for it
  29. 29. APPENDIXThe deal pyramid explained (port perspective)
  30. 30. The PI Deal Pyramid… Step 4…an overview Deal Closing the deal $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 foundation
  31. 31. Step 0……defining purposeQuestion: What is thepurpose? Why are youlooking forcustomers, partners andinvestors?Example: Expanding theport area to stimulateeconomy and trade inthe region. Thepreference is for…. Purpose
  32. 32. Step 0……identifying the targetQuestion: Who are youtargeting ascustomers, partners andinvestors and howwould you ideally like tosee them invest andcooperate?Example: We arelooking for 1 new oilstorage operator, 50%increase of the bio fueldeveloped area etc. Weexpect this to require atotal of 3,000m of Purpose Targetquay, 400ha andbetween €1-2 billion.
  33. 33. Step 0……creating the propositionQuestion: With thetarget investors in mindwhat is your propositionto them? Why shouldthey invest in your port?Example: Highlightingall the keymarket, investment andconcession-relateditems for each investortype e.g. one specializedfor oil, one for bio fueletc. Purpose Target Proposition
  34. 34. Step 1……exposure DealThis is about creatingawareness, getting your Developproposition out there inthe right form Expose and Engage Exposure 1,000-5,000 Purpose Target Proposition
  35. 35. Step 2……engagement DealThis is about creatingtrue engagement – a Developwebsite or commercialthat is available foreveryone to read will Engagenot do that. 50-100Investors, operators, developers and cargo Exposeowners only take thetime to get involved 1,000-5,000with projects wherethey feel chosen andsee commitment fromthe other side. Purpose Target Proposition
  36. 36. Step 3……development DealThis is about fast-tracking and developing Developreal opportunities withinvestors, operators, de 10-20velopers, cargo owners Engageetc. 50-100This requires creating aframe that gives all Exposesides the tools and trustto get real intentions on 1,000-5,000the table and talkspecific options. Purpose Target Proposition
  37. 37. Step 4……deal Deal $1bnThey now know you, themarket and their preferred Developoptions. Deals can closequickly. 10-20 Engage 50-100 Expose 1,000-5,000 Purpose Target Proposition