PRIVATISATION: LESSONS LEARNT FROM EUROPEAN EXPERIENCES

Transcription

1 PRIVATISATION: LESSONS LEARNT FROM EUROPEAN EXPERIENCES Ports

2 Agenda 1. Port of Lübeck Case Study 2. Reasons for Privatisations 3. Privatisation Process 4. Preconditions for Port Privatisations 5. Recent Transactions in the Port Sector 6. Factors of Success

3 German Case Study: Lübeck Lübeck is the largest German port in the Baltic Sea Over 130 departures per week to 25 destinations including Scandinavia, Russia and the Baltic states More than 150 transport and logistics companies shipped over 23 million tons of goods and 160,000 containers (TEU) in the Lübeck port in 2012 Port is operated by Lübecker Hafen-Gesellschaft (LHG) ,

4 German Case Study: Lübeck Lübeck Port: Passengers ( ) Market leadership Modern terminals Holistic service portfolio High quality and environmental standards Significant logistics location Ideal hinterland accessibility and infrastructure per road and inland waterway All terminals have direct rail connection Lübeck Port: Annual cargo tonnage ( ) Total throughput 23.9 Mio. t Container 160,000 TEU Vehicles 89,000 Units Passengers 406,

5 History of the Lübeck Transaction 1934 Founding of LHG GmbH 1962 Opening of Skandiviakai To date largest ferry terminal in Baltic Sea 1971 Opening of freight rail connection 1998 Hanseatic City of Lübeck becomes major shareholder of LHG 2006 Opening of Seelandkai Terminal for ConRo and RoRo-Ferries 2007 Initiation of the process of privatisation 2008 RREEF purchases 25.1% of LHG for approx. 30 Mio. EUR 2012 RREEF acquires additional 12.4% of LHG

6 Motivation for Privatisations 1 Privatisation proceeds 2 Insufficient ability to finance necessary expansion investments 3 Acquisition of private know-how 4 Additional traffic volume through private networks

7 Port Object Chain Port Hinterland Water Infra Infra+ Supra Cargo handling Modal Connections Access Channel Nautical infra Break water Environmental compensation Quay Land Pavement Rail quay Utilities Light Parking Ship to shore equipment Terminal handling equipment: Straddle carriers Van carriers Tractors, Forklifts Chassis Other Facilities: Gate complex Maintenance facilities, tool shop Inspection facilities Reefer facilities Offices, open storage, shed Manpower Insurance Rent/lease Maintenance Utilities Cleaning Overhead Road Rail Barge Feeder Internal Port Connections Sea-leg Land-leg 1

8 Privatisation Process EU-wide bidding process based on Openness Transparency Non-discrimination Phase II: Tendering & Negotiating Announcement Contact potential investors Offer evaluation (short list) Negotiations August 2006 February 2008 November 2007 Phase I: Preparing & Structuring Formulating objectives Developing different transaction structures and formulating a transaction option Identification of suitable investors Value determination Draft contract Phase III: Deciding Submissions to facilitate the decision-making process Communication 2

9 Landlord Model to Facilitate the Transaction Infrastructure Suprastructure Port Authority STATUS QUO Port Authority Supervisory Authority Owner of port Lease Provision of infrastructure Private Operator Operation of shipping activities Owner and investor of port GOAL Landlord- Model 3

10 Recent Port Transactions EBITDA-Multiples for recent port transactions 1bn 1.5bn 2.5bn Transaction size PD Ports Limited, UK Peel Ports Ltd, UK EBITDA - Multiple Heysham Port, UK RMS Europe Limited, UK Novoroslesekport, Russia PD Ports Group Ltd., UK Associated British Ports Holdings Limited, UK Mersey Docks & Harbour Company (MDHC), UK Forth Ports Plc, UK Lübecker Hafengesellschaft mbh, Germany 5 Global Ports Investments Plc, UK Port of Brisbane Pty Ltd., Australia Year 4

11 Private Ports in the Region ITALY Bari Samsun GREECE Bandırma TURKEY Izmir, Derince Piraeus MALTA Malta Freeport Mersin Iskenderun SYRIA CYPRUS privatised in progress 5

12 Factors of Success 1. Create transparency 2. Activate management 3. Improve seller s security 4. Expand corporate scope of action 5. Involve shareholders 6. Special consideration of the port infrastructure 6

13 Contact Details Hansjörg Arnold Germany Tel.: Fax:

14 Backup Funding for Transport s: EU-Connecting Europe Facility Budget of 29.3 billion between 2014 and billion for transport Key instrument to promote growth, jobs and competitiveness through targeted infrastructure investment at European level CEF investments are intended to act as a catalyst to attract further funding from the private sector and other public sector actors TEN-T Core network & core network corridors 8

15 Backup Connecting Europe Facility EU / EIB Bonds Funded Bond Credit Enhancement Funded Bond Credit Enhancement Costs Bonds (rating based on market conditions) EIB subdebt Bonds Investor & Costs Bonds (rating based on market conditions) Equity Bonds Investor Sponsor Equity Sponsor Costs overruns EIB guarantee The CEF is designed to attract private sector investment to infrastructure through a number of financial risk-sharing instruments, including special lending, guarantees and equity investments 9