The worth of adding value

“What added value business can the port actually generate through its plan? If it is investing in a container port or infrastructure, that is only a small part of the jigsaw. As an investor, I would want to see the value that facility is going to add.”

For example, cars come in through a port in their basic form; they are then moved to a PDI (pre-delivery inspection) point, where the cars are de-waxed and the go-faster stripes, radios and sunroofs are added. Kiwi fruit is imported from New Zealand – it could be loaded straight on trucks and sent out. “But if you put a supermarket sticker on the side, put the fruit in packs and deliver it to the supermarket, you have added value. That is what the port should be looking at,” says Mr Nixon.

“To attract investment, a port has to be different, offer added value and exploit its location and the benefits of that location.

“Investors will also want to know how the port is going to procure the project – does this proposal have cost certainty? These projects are huge in civil engineering terms, and another 10% means the margins have gone completely.”