Accelerating Infrastructure Development no FP
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Transcript of Accelerating Infrastructure Development no FP
www.port-investor.com
Why is this important?
Because ports are natural growth engines for their respective economies around the world. And the world
needs economic growth more than ever.
Because the potential is tremendous for more development. Trillions of dollars, thousands of operators, developers, cargo owners, and hundreds of concepts and models. Whichever
way you measure it, the potential is huge.
Because the challenge is substantial. Most have little appreciation for what infrastructure investing is about let
alone port infrastructure and decision makers are scattered all around the globe
www.port-investor.com
What is Port Investor doing about it?
The Port Investor community has hundreds of ports, investors, operators, developers, cargo owners and thousands of decision makers.
With our initiative to accelerate port development around the globe we want to:
Expose you to the right people with the right proposition Create commitment and engagement with high value constituents to cooperate Deliver a platform that fast-tracks cooperation from engagement to investment Establish a continuous process that keeps producing new opportunities
This is really about leverage and effectiveness. Every port has its own valuable market, customers, skills and leadership to move forward. This is about leveraging that in the most effective and complimentary manner.
Finally, all ports have existing relations and activities to develop, this is not a replacement for that, we only wish to accelerate not impede.
www.port-investor.com
A brief outline of what comes next…
The Potential
The Challenge
The Solution
Step 0 – foundation Step 1 – exposure Step 2 – engagement Step 3 – development Step 4 – deal
Covers the vast potential for ports to attract customers, partners and investors as well as fast-tracking development and expanding scope
Covers the challenges to tap this potential including global coverage and how decision makers discriminate
Lays out the Port Investor solution explained as a simple 5-step process
www.port-investor.com
The Potential
To Develop new and expand existing segments, footprint and concepts
To Fast-track and achieve your 10-year vision now
To Collaborate with and create collaboration between operators, developers, investors etc.
To Tap the global investment sector and the appetite for port infrastructure
To Attract new customers, investors and partners
www.port-investor.com
The Potential……to attract
NEW:Investors
CustomersPartners
CARGO OWNERSContainer shippingOil shippingBulk shippingMineral companiesEnergy companiesAgriculture companiesEtc.
OPERATORSContainer terminalOil and liquid terminalBulk terminalFree zonesLogistic zonesPort propertyEtc.
FUNDSPension fundsInsurance fundsPrivate equity fundsSovereign wealth fundsSeed investorsEtc.
DEVELOPERSConstructionMarine infrastructureEconomic zonesPort industry zonesPort logistic zonesEtc.
PARTNERSSouth American portsAsian portsEuropean portsMiddle Eastern portsEtc.
www.port-investor.com
The Potential……to develop
Bio Fuel
Cruise
Dry Port Oil Storage
In-Port Industries
BulkLogistic Zone
Free Zone
Port Property
Intermodal Hub
Energy Hub
Trade Hub
Port zones are natural growth engines for the economy. The potential to develop and expand to generate economic growth and trade for most ports far exceeds their current footprint.
This includes the development of trade hub, free zone, industry zone and other concepts.
www.port-investor.com
The Potential……to collaborate
MATCHING Over the course of a port infrastructure project the nature of the investment changes from stage to stage. Investors (as well as operators and developers) all have different preferences, some are more suitable for green-field whereas others look for mature facilities. Likewise each constituent brings its own set of strengths and skills to the table that amongst others can allow the undertaking of larger projects.
SYNGERGIZING (1 + 1 = 3)Ultimately this is all about finding synergies between parties with different skills and needs to accelerate development that may not otherwise have been possible or less attractive.
Greenfield$1bn
Port Group
Oil Operator
Container Operator
Bulk Operator
Investment Fund
Development
•Private Equity
•Construction Company
Growth •Investment Fund
•Operator
Maturity •Pension
Fund
Too big, too risky, too early, too complex… Many projects and investment opportunities have never made it into the real world simply because the right match or collaborative model could not be found.
www.port-investor.com
The Potential……to tap into the global investment sector
INVESTMENT FUNDS AND PRIVATE EQUITYMacquarie Infrastructure GroupBrookfield Infrastructure PartnersJP Morgan Infrastructure FundCiti Capital Advisors
SOVEREIGN FUNDSAbu Dhabi Investment AuthorityChina Investment CorporationGovernment of Singapore Investment CorporationMalaysia Mining Corporation
PENSION AND INSURANCE FUNDSPing An (2nd biggest Chinese insurance fund)Ontario Teachers Pension FundATP (biggest Danish fund)APG (biggest Dutch fund, 3rd biggest globally)
The global investment fund sector manages more than $100 trillion. Many want to “get real” (assets) and “go direct” (ownership) - they want real assets with real purpose. Ports are in an ideal position to tap into that.
However, the investment sector is hard to navigate and gets bombarded with investment proposals. The potential lies in getting the right exposure to the right people with the right proposition.
www.port-investor.com
The Potential……to fast-track
Some of the common answers are:
BIGGEROur port zone would have a much bigger footprint with substantial more activity and impact to the economy.
BETTERWe would be in a much better position to service our customers.
CLEANERBetter use of resources, a more connected infrastructure and newer technology would have allowed us to be substantially cleaner.
What difference would it make if you were where you are now 10 years ago? Where would that put you today?
Investments in port infrastructure are very important and often more cumbersome than investments in other sectors. This however does not mean they have to take years, with the right process, connections and knowledge they can be fast-tracked by several years. This is about the potential to reach your 10-year goal now.
www.port-investor.com
The Challenge
Ports are by nature local
Investors, operators, developers, cargo owners etc are global - there are
thousands and they are spread all across the globe
www.port-investor.com
The Challenge is very real because……the world is a big place
7 continents
24 time zones
> 50 common languages
193 countries
1,000+ investors
5,000+ ports
50,000+ decision makers
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The Challenge is very real because……decision makers discriminate
“I suggest we send a team … we have heard of substantial port development opportunities there!”
“What is it going to cost? What are you going to achieve? Does it fit the strategy? Should you focus elsewhere?”
“I can’t really tell you before I have been there…”
“Make a paper to outline all the key variables, the project cost and the potential return, then we can review…”
BUT YOU CAN’T BLAME THEM, WE ALL:
Like what we know
Like what is close to us
Like what is easy
Like what is in-expensive
Like what takes little time
Like what is easily justifiable
Like what is fast and effortless
www.port-investor.com
DEVELOPERS OPERATORSINVESTORS
Free ZoneMarine Infra.Construction
ContainerOil & LiquidDry Bulk
DEVELOPMENT
Pension FundPrivate EquitySovereign Fund
CARGO OWNERS
Shipping linesIndustrialsFabrication
PORT PARTNERS
AsiaLatin AmericaMiddle East
GLOBAL EXPOSURE FOR PORTSAn exclusive platform that allows a port to develop investment propositions and opportunities with invited investors, operators, developers, cargo owners etc
FOCUSED AND CONFIDENTIALInvitees sign NDA’s before gaining access to an online data room and forum to create win/win constellations usually exploring opportunities with 5-10 other invitees
SYNERGISTIC AND RESULT-ORIENTEDInvitees gain access to a synergistic environment with exclusivity and support
IMMEDIATE INVESTMENT POTENTIALInvitees can at any time decide to proceed with an exploration agreement for a specific proposition directly with the port and/or with other members
Our solution……bring the world to you
www.port-investor.com
APPENDIXBuilding your own pyramid of opportunities(the following slides are purely for illustration purposes - it is just one of the many ways)
www.port-investor.com
Our solution……an overview Deal
Develop
Engage
Exposure
$1bn
10-20
50-100
1,000-5,000
Purpose Target PropositionStep 0Create the foundation
Step 1Get exposure to thousands
Step 2Engage the most relevant
Step 3Deal development
Step 4Closing the deal
www.port-investor.com
Step 0……defining purpose
Purpose
Question: What is the purpose? Why are you looking for customers, partners and investors?
Example: Expanding the port area to stimulate economy and trade in the region. The preference is for….
www.port-investor.com
Step 0……identifying the target
Purpose Target
Question: Who are you targeting as customers, partners and investors and how would you ideally like to see them invest and cooperate?
Example: We are looking for 1 new oil storage operator, 50% increase of the bio fuel developed area etc. We expect this to require a total of 3,000m of quay, 400ha and between €1-2 billion.
www.port-investor.com
Step 0……creating the proposition
Purpose Target Proposition
Question: With the target investors in mind what is your proposition to them? Why should they invest in your port?
Example: Highlighting all the key market, investment and concession-related items for each investor type e.g. one specialized for oil, one for bio fuel etc.
www.port-investor.com
Step 1……exposure Deal
Develop
Expose and Engage
Exposure
1,000-5,000
Purpose Target Proposition
This is about creating awareness, getting your proposition out there in the right form
www.port-investor.com
Step 1……exposure
Dedicated space on network website port-investor.com/Ghent
Proposition and related material uploaded
Network alerted
Exposure to thousands of investors, operators, developers and cargo owners will create the foundation for a wide pull strategy
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Step 2……engagement Deal
Develop
Engage
Expose
1,000-5,000
Purpose Target Proposition
50-100
This is about creating true engagement – a website or commercial that is available for everyone to read will not do that.
Investors, operators, developers and cargo owners only take the time to get involved with projects where they feel chosen and see commitment from the other side.
www.port-investor.com
Step 2……engage
Based on market interestand careful selection 5-10 investors are engagedto gauge interest
NDA is signed Exclusive platform is populated with data andinitial propositions based on market feedback
Pull from network and non-network members as well as carefully selected connections create base for initial 5-10 serious potential investors
www.port-investor.com
Step 3……development Deal
Develop
Engage
Expose
1,000-5,000
Purpose Target Proposition
50-100
10-20
This is about fast-tracking and developing real opportunities with investors, operators, developers, cargo owners etc.
This requires creating a frame that gives all sides the tools and trust to get real intentions on the table and talk specific options.
www.port-investor.com
Step 4……deal Deal
Develop
Engage
Expose
1,000-5,000
Purpose Target Proposition
50-100
10-20
$1bn
Any party that has decided to go ahead and invest will continue separately outside the platform.They now know you, the market and their preferred options. Deals can close quickly.