Consultant Halcrow has completed trials of its Port Finance Model, and is offering it as an aid for assisting with increasing private sector investment in port developments. Said the consultant:
"The financial viability of schemes, whether it be a new port or extension of an existing one is of interest both to the private and the public sectors - for the former to help determine whether sufficient profits can be made, for the latter to ensure the right deal can be struck with a private sector concessionaire. "With increasing international trade, fuelled by globalisation, many predict that port capacity will record significant growth over the coming years. It follows that there will be greater need for financial advice." The Port Finance Model covers the key issues typically considered by investors incorporating the cost of development, operational expenditure, anticipated traffic volumes and revenues. The developers claim it can be used for any type of commodity and method of handling, whether for an existing facility or proposed new port/terminal and it can give a full range of projected financial results including profit and loss, cash flow, balance sheet, rate of return, net present value and payback period. Funded through Halcrow's research and development budget, the model draws on the consultant's international port experience.
