Friday 5 December 08 - 13:08
 

Finance & Investment: Concessioning Deals

The value of creation principles

An example of a port that effectively optimised its capital structure is the Port of Sillamäe in Estonia.

This privately-owned landlord port located close to the Russian border was established four years ago.

In recent years, the construction of four new terminals has been realised: Silport Oil Terminal, the Baltic Chemical Terminal, Tankchem and SilSteve. Development of a container terminal is in progress and it is expected to be operational by 2010. As common in the public sector, Silport (PA) uses tendering to optimise the value of the concessions with terminal operators.

Value creation principles were brought in to the project by the shareholders of the port authority, the Estonian company Silmet Group.

Through a 50-50 shareholder structure strategic Russion investors were brought into the project. In addition, bringing strategic investors to the port feeds into opportunities for the commercial development of the port.

With the focus on financial performance, the port authority is able to swiftly respond to market requirements and to provide optimal services levels in the port.

Motorship