Money matters

Much of this stemmed from the increased interest of investors and financial institutions in the period 2002-2007 which, in turn, played a major part in the uplift in value of port assets. The bubble of year-upon-growth-year has, however, now burst and like other service industries the shipping and ports sector is presently facing a new reality in terms of the banking climate. This new reality, its implications, and the way forward represents a central theme of the forthcoming Private Capital & Ports Conference, organised by

Port Strategy

and scheduled to be held in London, October 21-22, 2009.

Both sides of the equation will be examined, the “new rules of engagement” being fielded by the banking sector and the revised approach of port operators. The implications of the re-pricing of port assets will be examined. From the operator perspective, there is generally a husbanding of financial resources in train and currently an aversion to high cost build-operate-transfer style projects. What projects currently fit the investment criteria of operators and when is it anticipated there will be a willingness to take on the high cost projects again.

Ocean Shipping Consultants will consider how the future will unfold with particular emphasis on 2010 and identification of further risks that will be faced. The fundamental structural changes that may appear in the international ports sector as a result of the recent economic tsunami will also be the subject of analysis as well as the lessons that can be learnt with regard to future project development. One school of thought that several speakers will touch upon in the latter respect is the new deal structures and alliances that are likely to emerge in the wake of the recent difficult times. Radical changes are predicted by some.

In a similar vein, there will be a major focus on what it takes to successfully bring a new port project – a privatisation, resale or newbuild project to the market. A “hot list” of dos and don’ts will be provided as to how to package an opportunity to maximise investor interest as well detailed financial perspectives of what investors are looking for when assessing a port investment opportunity. This will include what it takes to get the interest of new generation investors such as infrastructure funds and private equity companies. Senior executives from both these sectors will detail their respective approaches and provide an insight into major transactions just undertaken including entirely new port development. Raising capital through a stock market listing and experience to date in this respect will also be the subject of another specialist presentation.

The alliance of private and public capital to meet port needs and deliver the most efficient capital solution will be a further area of discussion again tapping into the experience of recently completed projects.

Throughout, the important aspect of port valuation will remain in focus including identification of winners and losers – comparing the effects of the valuation downturn across different geographies and different port types.

Risk reduction and mitigation will be the subject of a major session. A ‘tool kit’ to reduce risk with new projects will be discussed and a specialist insight provided into undertaking in a behind the scenes manner proper assessment of potential new business partners, major suppliers etc.

Last but not least, the two-day conference will provide a focus on new port opportunities, traditional and new generation style investors, including a specialist session on the Black Sea and eastern Europe.

Private Capital & Ports will be held in London, October 21-22, 2009 at the Andaz hotel close to Liverpool Street station. For further information and to confirm bookings please go to www.portstrategy.com/privatecapitalports