NSW Ports Consortium & its investment in infrastructure
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Transcript of NSW Ports Consortium & its investment in infrastructure
NSW Transport Infrastructure Summit
August 2013
Introduction to NSW Ports Owner of Port Botany and Port Kembla
Industry Funds
Management Pty Ltd
(“IFM”)
AustralianSuper Pty Ltd
(“AustralianSuper”)
Tawreed Investments
Limited (“Tawreed”)
The State Public Sector
Superannuation Fund
(“QSuper”)
NSW Ports is a consortium of leading institutional investors and represents more than
80% Australian superannuation funds. The NSW Ports consortium comprises:
1
Who we are
We are investors in Australia’s most important infrastructure
2
Western
Australia
Northern
Territory
Queensland
New South Wales
Victoria
South
Australia
Tasmania
NSW Ports is a long-term asset investor, with interests in a range of key infrastructure assets throughout Australia,
including:
Ten airports, three seaports, three toll roads, one transport interchange, 16 social infrastructure assets
The consortium has a strong track record in supporting the development of essential infrastructure assets
Perth Airport
Perth Law Courts
Northern Territory Airports
Port of Brisbane
Eastern Distributor
Brisbane Airport
Melbourne Airport Southern Cross Station
We have invested in NSW’s infrastructure since 1998
3
New South Wales
Wyuna Water
Axiom
M1, M4, M5, Sydney
Airport, Sydney
Desalination Plant,
NSW Rent Buy
NSW Ports members are also investors in critical NSW road infrastructure including the Eastern Distributor and
M5 South West motorway
We are delighted with the opportunity to invest in NSW’s most important seaports
Investment Description Location Year Acquired
M5 South West
Motorway Toll road Sydney 1998
M4 Motorway Toll road Sydney 1998
M1 Motorway /
Eastern Distributor Toll road Sydney 2000
Wyuna Water Water treatment Illawarra,
Woronora 2003
Axiom Education School buildings Sydney 2003
NSW Rent Buy Public sector
housing Sydney 2005
Sydney Airport Airport Sydney 2008
Sydney
Desalination Plant Water treatment Sydney 2012
Port Botany & Port
Kembla Ports Sydney, Illawarra 2013
Port Kembla
Port Botany
About IFM
4
IFM is a global investment manager and is
fully-owned by 30 Australian superannuation
funds.
We manage $46 billion across infrastructure,
debt, private equity and listed equities
IFM is Australia's largest investor in
infrastructure, and with over $14 billion in
infrastructure investments globally, is one of
the largest infrastructure investors in the
world
IFM has a strong 18 year track record
successfully managing infrastructure
through economic cycles
IFM Owners
Direct investors into Port Botany & Port Kembla
Port Botany
5
Port Botany – Significant new capacity added
6
Port Kembla
7
Port Kembla – Growth Opportunities
8
A compelling investment opportunity
9
• Serve as the gateway to Australia’s largest economy
• Population base provides strong ongoing demand for container imports
• Main port facilities serving NSW (except for coal exports at Newcastle)
• Combination of Botany and Kembla results in a diversified profile of import and export driven revenue from a range of trade types and commodities
High quality, essential economic assets
• Container wharfage (50% of total revenues) faces very limited competition from other ports
• Majority of property leases are long term (20+ years) with favourable terms
Revenue largely contracted or monopolistic in nature
• Low levels of operational risk – no stevedoring or dredging businesses
• High margins (75%+) with strong operational leverage due to fixed and relatively low cost base
Landlord business model with high margins
• Over $1 billion of major growth capital expenditure expected to be largely completed prior to Financial Close
Significant investment prior to privatisation – high cash
conversion expected
• Option to expand container facilities as Port Botany approaches capacity
• Close proximity to the high growth industrial areas in south west Sydney
Future expansion opportunities at Port Kembla
• IFM’s economic exposure to NSW was only 6.5% while NSW represents 1/3 of Australia’s population and 31.6% of GDP
• One of only three remaining major capital city port companies in Australia Strong portfolio fit
Our vision: To create an integrated, world class port management company
10
NSW Ports wants to continue the great work we have evidenced from management and staff
through our diligence phase and first two months of ownership
• Promote safe, responsible and reliable operations
• Capitalise on the strengths of each facility Develop both ports to
their full potential
• Bring out the best from the combined organisation by having a highly engaged workforce
• Support management and staff to deliver effective outcomes
Responsible and efficient operation of
the organisation
• Maintain strong customer relationships
• Work with other stakeholders including government, stevedores, transportation logistics companies and local communities to solve off port issues
Build strong relationships with all
stakeholders
• Committed to managing and developing the ports in a safe, secure, efficient and environmentally responsible manner
• Be a good corporate citizen that employees and investors can be proud to be part of
Focus on sustainable growth
NSW Ports is positioned to support future growth
11
Management & Staff
Board of NSW Ports
Port Botany Port Kembla
• NSW’s primary container port
• Critical infrastructure for bulk liquids
trade
• The only LPG import facility in NSW
• Independent Chairperson
• Appointees with significant port and other infrastructure
experience
Collaborative sharing of best
practices between the two
ports
NSW Ports is well capitalised and aligned to support the development of both ports to their full potential
• Australia’s largest vehicle import
facility
• Primary bulk trade port in NSW
focusing on grain and coal
• Management team representing both facilities
• Active engagement with staff to enhance operations
Backed by committed and influential investors that will support the growth and development of both ports