Diversified Port Property Experience
Since its founding in 2003, Aegir’s founding principal, Franc J Pigna, has continuously researched, analysed and written on numerous aspects of port real estate and how it impacts ports and their clients.
From writing the seminal research paper on the subject for the American Association of Port Authorities, to numerous presentations at international industry conferences, writing papers for trade journals and being published in books related to ports, infrastructure finance and other relevant topics, research and innovation form a major cornerstone for providing innovative service. Aegir’s principals and consultants have a wide breadth and scope of port real estate experience and service delivery worldwide, best exemplified with the cross section of instructions below.
Client: Port Authority
Location: USA
Challenge: A major tract of near dock land behind a terminal was coming up for rent reviews. Additionally, a large port owned industrial tract located off port but under a port related use was also coming up for rent review as well. The port director felt current rental rates for both sites were under ‘market’ but had no way of gauging this locally.
Solution: Aegir was engaged to undertake a comprehensive assessment of the two sites, the general market conditions for industrial land in the region and land at comparable port facilities and uses and determine what the ‘market’ rents should be for both.
Through a combination of in depth local and like kind port market and property analyses and using established valuation approaches market values and corresponding lease rates were established and corroborated resulting in lease more than fifty percent of existing ones.
The Net Results: Through a combination of in depth local and like kind port market and property analyses and using established valuation approaches market values and corresponding lease rates were established and corroborated resulting in lease more than fifty percent of existing ones.
Client: Port Authority
Location: USA
Challenge: A major tract of near dock land behind a terminal was coming up for rent reviews. Additionally, a large port owned industrial tract located off port but under a port related use was also coming up for rent review as well. The port director felt current rental rates for both sites were under ‘market’ but had no way of gauging this locally.
Solution: Aegir was engaged to undertake a comprehensive assessment of the two sites, the general market conditions for industrial land in the region and land at comparable port facilities and uses and determine what the ‘market’ rents should be for both.
Through a combination of in depth local and like kind port market and property analyses and using established valuation approaches market values and corresponding lease rates were established and corroborated resulting in lease more than fifty percent of existing ones.
The Net Results: Through a combination of in depth local and like kind port market and property analyses and using established valuation approaches market values and corresponding lease rates were established and corroborated resulting in lease more than fifty percent of existing ones.
Client: Valuation & consulting: fee simple and leasehold interests – inland bulk terminals
Location: USA
Challenge: Major steel company was looking to determine a market value lease rate, terms and conditions for the renewal of a lease for a bulk terminal located on a major inland waterway for lease negotiations. After several discussions with local, traditional appraisers, they realized the market dynamics for this type of asset were different than what they were being told, as the value ranges being discussed were not correlating with their investment in the facility and the supply/demand factors for this type of asset and other relevant issues.
Solution: Undertook an income, replacement, developer’s residual method and comparable approaches to valuation. With results, could advise the client on value and lease rate terms and conditions.
The Net Results: Client could present to their tenant a substantiated case as to the lease rate terms and conditions for the asset, which was considerably higher than what they had been paying. Tenant accepted results of the study and renewed the lease.
Client: Valuation & consulting: fee simple and leasehold interests – inland bulk terminals
Location: USA
Challenge: Major steel company was looking to determine a market value lease rate, terms and conditions for the renewal of a lease for a bulk terminal located on a major inland waterway for lease negotiations. After several discussions with local, traditional appraisers, they realized the market dynamics for this type of asset were different than what they were being told, as the value ranges being discussed were not correlating with their investment in the facility and the supply/demand factors for this type of asset and other relevant issues.
Solution: Undertook an income, replacement, developer’s residual method and comparable approaches to valuation. With results, could advise the client on value and lease rate terms and conditions.
The Net Results: Client could present to their tenant a substantiated case as to the lease rate terms and conditions for the asset, which was considerably higher than what they had been paying. Tenant accepted results of the study and renewed the lease.
Client: Strategic port property asset management plan
Location: Africa
Challenge: A national port authority with an extensive port property portfolio throughout eight ports looking to institute a plan to more effectively manage the expansive portfolio, structure meaningful lease rates and benchmark asset value enhancement success.
Solution: Conduct a comprehensive analysis of existing management policies and practices, review lease documents and leases, develop strategic port property asset management plan and port property valuation model.
The Net Results: Identification of existing management policy shortcomings, development of port property valuation model to easily benchmark property values, attain savings in lease administration software and have meaningful property management efficiencies.
Client: Strategic port property asset management plan
Location: Africa
Challenge: A national port authority with an extensive port property portfolio throughout eight ports looking to institute a plan to more effectively manage the expansive portfolio, structure meaningful lease rates and benchmark asset value enhancement success.
Solution: Conduct a comprehensive analysis of existing management policies and practices, review lease documents and leases, develop strategic port property asset management plan and port property valuation model.
The Net Results: Identification of existing management policy shortcomings, development of port property valuation model to easily benchmark property values, attain savings in lease administration software and have meaningful property management efficiencies.
Client: Port Authority – port master plan; port property section
Location: USA
Challenge: Under rapidly changing market conditions assisting a global engineering company to better identify challenges, identify opportunities and develop solutions to better manage the future of a 3,000-acre, privately owned, voluntary port overlay zone area that clearly was increasingly becoming feasible development sites for non-port uses.
Solution: Identify real (versus perceived) issues with the voluntary port overlay zone, as it relates to the port; assess the real property needs for the port in the next twenty years; develop an alternative development plan for the area to be presented to the municipality for approval of a new, smaller, port area but with more definitive port related uses.
The Net Results: The port could protect the strategic areas surrounding it for port related uses that would serve its expansion needs for decades to come.
Client: Port Authority – port master plan; port property section
Location: USA
Challenge: Under rapidly changing market conditions assisting a global engineering company to better identify challenges, identify opportunities and develop solutions to better manage the future of a 3,000-acre, privately owned, voluntary port overlay zone area that clearly was increasingly becoming feasible development sites for non-port uses.
Solution: Identify real (versus perceived) issues with the voluntary port overlay zone, as it relates to the port; assess the real property needs for the port in the next twenty years; develop an alternative development plan for the area to be presented to the municipality for approval of a new, smaller, port area but with more definitive port related uses.
The Net Results: The port could protect the strategic areas surrounding it for port related uses that would serve its expansion needs for decades to come.
Client: Port and related logistics park development feasibility analysis
Location: USA
Challenge: Institutional investor acquires one of the largest waterfront industrial sites in the developed world at auction; while seeking a ‘highest and best use’ analysis, from a ports, logistics and maritime standpoint, is confronted with the real possibility of an eminent domain action by the municipality.
Solution: Conduct a comprehensive assessment of the site from a maritime and logistics standpoint; identify potential land uses, values and target users; in conjunction with legal counsel, assess business ramifications of potential eminent domain action; conduct a cost-benefit-risk analysis for defending against a ‘quick take’ action and developing the site or engaging in a friendly ‘quick take’ action with the municipality.
The Net Results: The investors were given the necessary analyses and advice with which to decide to sell the site for substantial gains with a short term holding period and have the necessary information with which to more effectively negotiate a sales price.
Client: Port and related logistics park development feasibility analysis
Location: USA
Challenge: Institutional investor acquires one of the largest waterfront industrial sites in the developed world at auction; while seeking a ‘highest and best use’ analysis, from a ports, logistics and maritime standpoint, is confronted with the real possibility of an eminent domain action by the municipality.
Solution: Conduct a comprehensive assessment of the site from a maritime and logistics standpoint; identify potential land uses, values and target users; in conjunction with legal counsel, assess business ramifications of potential eminent domain action; conduct a cost-benefit-risk analysis for defending against a ‘quick take’ action and developing the site or engaging in a friendly ‘quick take’ action with the municipality.
The Net Results: The investors were given the necessary analyses and advice with which to decide to sell the site for substantial gains with a short term holding period and have the necessary information with which to more effectively negotiate a sales price.
Client: Encroachment damage assessment for potential aggregates terminal
Location: USA
Challenge: Private terminal operator is looking to develop an aggregates terminal on a deep water inland waterway. A major six lane, elevated bridge is built and the pilings encroach on client’s fee simple submerged land holdings (granted through a Royal Grant dating back the 1630’s), interests which were unbeknownst to the bridge developers at the time, which will significantly impact the client’s ability to load Post Panamax bunker carriers and render this use for the site unfeasible.
Solution: Retained to conduct ‘highest and best use’ study, inclusive of potential revenue streams, to be used by local appraiser in their valuation of the site, which was to be used in court.
The Net Results: The maritime related impact on the value of the site was analyzed and presented in a way that it was readily understood by the client’s local appraiser and the court.
Client: Encroachment damage assessment for potential aggregates terminal
Location: USA
Challenge: Private terminal operator is looking to develop an aggregates terminal on a deep water inland waterway. A major six lane, elevated bridge is built and the pilings encroach on client’s fee simple submerged land holdings (granted through a Royal Grant dating back the 1630’s), interests which were unbeknownst to the bridge developers at the time, which will significantly impact the client’s ability to load Post Panamax bunker carriers and render this use for the site unfeasible.
Solution: Retained to conduct ‘highest and best use’ study, inclusive of potential revenue streams, to be used by local appraiser in their valuation of the site, which was to be used in court.
The Net Results: The maritime related impact on the value of the site was analyzed and presented in a way that it was readily understood by the client’s local appraiser and the court.
Client: Port Authority – port related logistics park development highest and best use, financial and market feasibility analyses and development recommendations
Location: Caribbean
Challenge: Large tract of land adjacent to the port was being awarded to the port authority by the central government for the development of a logistics park. The feasibility of such a project was needed to be established, along with financing alternatives, if any, considering that the island country in question had experienced 16 quarters of economic contraction.
Solution: An existing development plan was created meeting the perceived needs of the commercial marketplace rather than the port centric one. Neither the government nor port had funds available for the development of the logistic park and the size of the precluded it from being developed in one phase.
A comprehensive analysis of the local commercial and industrial marketplace was undertaken to gauge demand and absorption for different types of space. An analysis of the maritime segment was also conducted to identify maritime uses and specialist port related facilities. Development phases based on potential demand, development costs and challenges (the area is in an earthquake zone and is reclaimed land, making construction of any facility expensive) were established.
Project was reworked to produce a more port centric logistics park to be built in pods of ten acres. National pension funds were interviewed for their potential interest in investing and financing such a project; the project was received with significant positive interest. A required connector between the port and the park was changed from a tunnel (due to the nature of the subsoil) to a bridge which would be financed through tolls.
The Net Results: the potential attainment of an almost double digit return for the port authority on ‘market’ capital values for the land with no money invested by either the port or the central government through a combination of PPP joint ventures between port users, pension funds and the port authority.
Client: Port Authority – port related logistics park development highest and best use, financial and market feasibility analyses and development recommendations
Location: Caribbean
Challenge: Large tract of land adjacent to the port was being awarded to the port authority by the central government for the development of a logistics park. The feasibility of such a project was needed to be established, along with financing alternatives, if any, considering that the island country in question had experienced 16 quarters of economic contraction.
Solution: An existing development plan was created meeting the perceived needs of the commercial marketplace rather than the port centric one. Neither the government nor port had funds available for the development of the logistic park and the size of the precluded it from being developed in one phase.
A comprehensive analysis of the local commercial and industrial marketplace was undertaken to gauge demand and absorption for different types of space. An analysis of the maritime segment was also conducted to identify maritime uses and specialist port related facilities. Development phases based on potential demand, development costs and challenges (the area is in an earthquake zone and is reclaimed land, making construction of any facility expensive) were established.
Project was reworked to produce a more port centric logistics park to be built in pods of ten acres. National pension funds were interviewed for their potential interest in investing and financing such a project; the project was received with significant positive interest. A required connector between the port and the park was changed from a tunnel (due to the nature of the subsoil) to a bridge which would be financed through tolls.
The Net Results: the potential attainment of an almost double digit return for the port authority on ‘market’ capital values for the land with no money invested by either the port or the central government through a combination of PPP joint ventures between port users, pension funds and the port authority.
Client: Highest and Best Use’ & revenue analysis – on dock inter modal facility.
Location: East Coast US
Challenge: Fund owned two large tracts of land earmarked for luxury planned unit developments. The onset of the Great Recession made this type of development unfeasible. Client was looking for alternative use for the sites which were located adjacent to major port facilities.
Solution: A comprehensive analysis of the maritime and cargo market was undertaken along with a SWOT analysis of the port in question. This identified as a lack of on and near dock inter modal capabilities significantly negatively impacting this port facility, a function which both sites could easily take on.
The Net Results: A comprehensive market and financial analyses, inclusive of projected revenue streams and pricing for services, was undertaken for two major inter modal projects. Based on the results of the analysis, the designs for the proposed projects were changed to attain millions in capital expenditures. The projected internal rate of return estimates, which were extensively corroborated with market data and analysis, exceeded the pension fund’s established financial and timing thresholds. Both projects were approved by the pension’s investment committee in a collective amount exceeding $800 million.
Client: Highest and Best Use’ & revenue analysis – on dock inter modal facility.
Location: East Coast US
Challenge: Fund owned two large tracts of land earmarked for luxury planned unit developments. The onset of the Great Recession made this type of development unfeasible. Client was looking for alternative use for the sites which were located adjacent to major port facilities.
Solution: A comprehensive analysis of the maritime and cargo market was undertaken along with a SWOT analysis of the port in question. This identified as a lack of on and near dock inter modal capabilities significantly negatively impacting this port facility, a function which both sites could easily take on.
The Net Results: A comprehensive market and financial analyses, inclusive of projected revenue streams and pricing for services, was undertaken for two major inter modal projects. Based on the results of the analysis, the designs for the proposed projects were changed to attain millions in capital expenditures. The projected internal rate of return estimates, which were extensively corroborated with market data and analysis, exceeded the pension fund’s established financial and timing thresholds. Both projects were approved by the pension’s investment committee in a collective amount exceeding $800 million.
Client: Port Authority – re-calibration of port’s position in the community and with clients, unions and other stakeholders.
Location: Canada
Challenge: Over the years the port authority had experienced an increasingly contentious environment between the union, terminal operators, community and the logistics sector, which was negatively impacting the interests of all concerned. This was identified as a major challenge by the incoming chief executive, who wanted to take the opportunity of a new administration to ‘re-align’ common interests, goals and objectives.
Solution: An assessment of each stakeholder’s position was done; a review of the port’s competitive position was made; surveys were undertaken to identify key issues; and extensive interviews with port staff, union members and clients were conducted. With the results and in conjunction with port senior management, a strategy was developed to ‘re-align’ the interests of all concerned through a one day port workshop open to the public. At the workshop and overview of the history of the port, its contribution over the decades to the community and its current market position and the challenges the industry and more specifically the port faced was presented. The overriding message was that if all stakeholders did not align their interests and reach a higher level of co-operation, the port would start to seriously lose market share, since the present status quo was making the port noncompetitive and unsustainable. Extensive questions and answers periods were held, along with numerous round table discussions addressing key issues and collectively addressing hypothetical case studies (reflecting reality in most cases). At one round table, union members and terminal operators were purposely seated side by side (to their great discomfort). At the end of the workshop key goals and objectives were collectively set with the key, unspoken, one being to have all concerned buy into a re-alignment and a new start for them and for the port.
The Net Results: The bringing together of port stakeholders, shareholders and the community at large had striking effects. The interdependence of each player became self-evident, with co-operation and a willingness to discuss issues in the future clearly critical, if the port was to survive. The workshop also set the stage for the clear change of course the new chief executive was going to take. Five years after the workshop, a presentation was made to the community on the progress they all had made since the workshop. The results were dramatic and a testament to the vision of the then new chief executive and the willingness of the port clients, union and the community at large to forge ahead under a newly re-aligned purpose and spirit.
Client: Port Authority – re-calibration of port’s position in the community and with clients, unions and other stakeholders.
Location: Canada
Challenge: Over the years the port authority had experienced an increasingly contentious environment between the union, terminal operators, community and the logistics sector, which was negatively impacting the interests of all concerned. This was identified as a major challenge by the incoming chief executive, who wanted to take the opportunity of a new administration to ‘re-align’ common interests, goals and objectives.
Solution: An assessment of each stakeholder’s position was done; a review of the port’s competitive position was made; surveys were undertaken to identify key issues; and extensive interviews with port staff, union members and clients were conducted. With the results and in conjunction with port senior management, a strategy was developed to ‘re-align’ the interests of all concerned through a one day port workshop open to the public. At the workshop and overview of the history of the port, its contribution over the decades to the community and its current market position and the challenges the industry and more specifically the port faced was presented. The overriding message was that if all stakeholders did not align their interests and reach a higher level of co-operation, the port would start to seriously lose market share, since the present status quo was making the port noncompetitive and unsustainable. Extensive questions and answers periods were held, along with numerous round table discussions addressing key issues and collectively addressing hypothetical case studies (reflecting reality in most cases). At one round table, union members and terminal operators were purposely seated side by side (to their great discomfort). At the end of the workshop key goals and objectives were collectively set with the key, unspoken, one being to have all concerned buy into a re-alignment and a new start for them and for the port.
The Net Results: The bringing together of port stakeholders, shareholders and the community at large had striking effects. The interdependence of each player became self-evident, with co-operation and a willingness to discuss issues in the future clearly critical, if the port was to survive. The workshop also set the stage for the clear change of course the new chief executive was going to take. Five years after the workshop, a presentation was made to the community on the progress they all had made since the workshop. The results were dramatic and a testament to the vision of the then new chief executive and the willingness of the port clients, union and the community at large to forge ahead under a newly re-aligned purpose and spirit.
Client: Port Authority – port property value enhancement, port stakeholder community development
Location: Caribbean
Challenge: Port authority was looking to enhance the value of land holdings and a substantial wharf located in an historic district several hundred years old. The district had experienced significant depopulation through urban flight and sprawl. The only effective way to enhance the port’s asset values was to redevelop the district in a concerted and planned fashion.
Solution: A ‘hub and spoke’ urban re-development plan was developed, major anchor landlords were identified and contacted, an urban planning studio with extensive experience in ‘hard and soft’ port and urban waterfront planning was retained and in conjunction with the urban planners a strategic and financial re-development plan for the district was created. This plan included such strategies as connecting four distinctly different and separated tourist areas with a hybrid diesel trolley system; structuring loan guarantees from the Central Bank and the European Union for soft re-development loans for individual property owners; creating a local community support initiative for the projects; and obtaining commitments for the re-development of key anchor parcels with the district by the anchor major landlords.
The Net Results: The plan was presented to the community and addressed every major issue that the port’s shareholders and stakeholders had and was widely and robustly accepted by the community at large.
Client: Port Authority – port property value enhancement, port stakeholder community development
Location: Caribbean
Challenge: Port authority was looking to enhance the value of land holdings and a substantial wharf located in an historic district several hundred years old. The district had experienced significant depopulation through urban flight and sprawl. The only effective way to enhance the port’s asset values was to redevelop the district in a concerted and planned fashion.
Solution: A ‘hub and spoke’ urban re-development plan was developed, major anchor landlords were identified and contacted, an urban planning studio with extensive experience in ‘hard and soft’ port and urban waterfront planning was retained and in conjunction with the urban planners a strategic and financial re-development plan for the district was created. This plan included such strategies as connecting four distinctly different and separated tourist areas with a hybrid diesel trolley system; structuring loan guarantees from the Central Bank and the European Union for soft re-development loans for individual property owners; creating a local community support initiative for the projects; and obtaining commitments for the re-development of key anchor parcels with the district by the anchor major landlords.
The Net Results: The plan was presented to the community and addressed every major issue that the port’s shareholders and stakeholders had and was widely and robustly accepted by the community at large.
Client: Keystone Coal Company
Location: Jacksonville, Florida
Challenge: Port of Jacksonville institutes a takeover action through eminent domain powers for a recently acquired 70-acre potential coal terminal.
Solution: A valuation strategy and argument was framed incorporating various approaches to value and the impact of numerous factors on East Coast port lands such as the expansion of the Panama Canal. The net result was the highest eminent domain award to the client in the history of the State of Florida.
The Net Results: The highest eminent domain jury award in the history of the State of Florida – more than $67 million.
Client: Keystone Coal Company
Location: Jacksonville, Florida
Challenge: Port of Jacksonville institutes a takeover action through eminent domain powers for a recently acquired 70-acre potential coal terminal.
Solution: A valuation strategy and argument was framed incorporating various approaches to value and the impact of numerous factors on East Coast port lands such as the expansion of the Panama Canal. The net result was the highest eminent domain award to the client in the history of the State of Florida.
The Net Results: The highest eminent domain jury award in the history of the State of Florida – more than $67 million.
Client: Strategic port property asset management plan, lease structuring, valuations
Location: US Inland waterways
Challenge: State port authority with various state-wide port facilities was reviewing its five-year appraisal and lease pricing process for its property portfolios. They were looking for reports and analyses that would be more relevant and usable for their pricing needs as they felt that past exercises in this regard had accomplished and added little value to their land pricing.
Solution: A review of their last appraisal reports indicated that the port authority’s pricing was based on erroneous capitalization rates based on ground lease capitalization rates for fast food restaurants. Comprehensive valuation analysis of each major port facility was undertaken and every individual land parcel.
A comprehensive review and analyses of their lease administration and asset management practices were undertaken to develop a comprehensive strategic port property asset management plan for all port facilities and the port authority in general.
Appropriate capitalization rates were developed along with a simple yet effective port pricing schedule ensuring that real returns of and on capital values would be achieved.
The Net Results: The net results were upwardly revamped lease rates at every facility and the development of an asset management plan that would make managing of port property assets more effective and simpler for port directors and senior management, benchmark financial performance and over arch the port authority’s core business strategies.
Client: Strategic port property asset management plan, lease structuring, valuations
Location: US Inland waterways
Challenge: State port authority with various state-wide port facilities was reviewing its five-year appraisal and lease pricing process for its property portfolios. They were looking for reports and analyses that would be more relevant and usable for their pricing needs as they felt that past exercises in this regard had accomplished and added little value to their land pricing.
Solution: A review of their last appraisal reports indicated that the port authority’s pricing was based on erroneous capitalization rates based on ground lease capitalization rates for fast food restaurants. Comprehensive valuation analysis of each major port facility was undertaken and every individual land parcel.
A comprehensive review and analyses of their lease administration and asset management practices were undertaken to develop a comprehensive strategic port property asset management plan for all port facilities and the port authority in general.
Appropriate capitalization rates were developed along with a simple yet effective port pricing schedule ensuring that real returns of and on capital values would be achieved.
The Net Results: The net results were upwardly revamped lease rates at every facility and the development of an asset management plan that would make managing of port property assets more effective and simpler for port directors and senior management, benchmark financial performance and over arch the port authority’s core business strategies.
Client: Diversified Global 500 Corporation
Location: England
Challenge: As part of a significant corporate acquisition client acquires a once major paper and pulp distribution business with three terminals at a port in England. Although a non-core business, it had some strategic land assets which over time were sold off at substantial profit. Subsidiary starts posting increasingly large monthly operating losses and the remaining major assets left in the company are the leasehold interests in the three terminals.
Solution: Aegir is called to analyse all options. A comprehensive valuation of the leaseholds is conducted during the beginning of the Great Recession. Although the leaseholds have value, the breadth, scope and depth of the global recession effectively shuts down any potential market for the disposal of the terminal leaseholds.
An in-depth analysis of the business and the development of a turnaround strategy is developed for the client. Upon reviewing the results, it is decided that although there is the possibility of turning around the business, the growth potential in the foreseeable future for the industry does not warrant the time or investment required to turn the entity around.
An immediate winding down plan is developed whereby Aegir and Drewry offer interim management services for the entity and a planned winding down programme for the business unit is undertaken. Within six months the business is effectively shut down, assets sold and negotiations with the landlord result in a quick termination of the lease, resulting in major cost savings to the client.
The Net Results: Within six months the business is effectively shut down, assets sold and negotiations with the landlord result in a quick termination of the lease, resulting in major cost savings to the client.
Client: Diversified Global 500 Corporation
Location: England
Challenge: As part of a significant corporate acquisition client acquires a once major paper and pulp distribution business with three terminals at a port in England. Although a non-core business, it had some strategic land assets which over time were sold off at substantial profit. Subsidiary starts posting increasingly large monthly operating losses and the remaining major assets left in the company are the leasehold interests in the three terminals.
Solution: Aegir is called to analyse all options. A comprehensive valuation of the leaseholds is conducted during the beginning of the Great Recession. Although the leaseholds have value, the breadth, scope and depth of the global recession effectively shuts down any potential market for the disposal of the terminal leaseholds.
An in-depth analysis of the business and the development of a turnaround strategy is developed for the client. Upon reviewing the results, it is decided that although there is the possibility of turning around the business, the growth potential in the foreseeable future for the industry does not warrant the time or investment required to turn the entity around.
An immediate winding down plan is developed whereby Aegir and Drewry offer interim management services for the entity and a planned winding down programme for the business unit is undertaken. Within six months the business is effectively shut down, assets sold and negotiations with the landlord result in a quick termination of the lease, resulting in major cost savings to the client.
The Net Results: Within six months the business is effectively shut down, assets sold and negotiations with the landlord result in a quick termination of the lease, resulting in major cost savings to the client.
Client: Port Authority – port land expansion strategy and implementation
Location: USA
Challenge: Port authority and its clients were so land constrained that most were operating at almost double the design and land capacity thresholds. To continue to grow, port had to significantly increase off-port land banks. The port’s location was in area with a challenging political environment not receptive to further port expansion.
Solution: An off-port land expansion strategy was developed that highlighted the port’s main business lines as being ‘clean business; the benefits of consolidating port activities nearer to the port were presented; an innovative revenue sharing program with the predominant municipality was structured; and the beneficial economic impact of new business to the city and its citizenry detailed.
The Net Results: A more receptive political environment; potential land use changes resulting in 300 acres coming on stream for port use; and a closer worming relationship between city and port.
Client: Port Authority – port land expansion strategy and implementation
Location: USA
Challenge: Port authority and its clients were so land constrained that most were operating at almost double the design and land capacity thresholds. To continue to grow, port had to significantly increase off-port land banks. The port’s location was in area with a challenging political environment not receptive to further port expansion.
Solution: An off-port land expansion strategy was developed that highlighted the port’s main business lines as being ‘clean business; the benefits of consolidating port activities nearer to the port were presented; an innovative revenue sharing program with the predominant municipality was structured; and the beneficial economic impact of new business to the city and its citizenry detailed.
The Net Results: A more receptive political environment; potential land use changes resulting in 300 acres coming on stream for port use; and a closer worming relationship between city and port.
Client: Port land expansion acquisition strategy
Location: USA
Challenge: Port authority meeting on port land capacity seeking to obtain additional land bank usage from adjacent underutilised US Navy facility.
Solution: Develop a proposal for the management of the adjacent land bank that would result in the port not having to invest capital by offering to manage and market land while still maintaining the Department of Defense’s requirement to deliver short term vacating of the site.
The Net Results: Port did not have to lay out capital and could generate revenues for the Navy and itself and better serve clients.
Client: Port land expansion acquisition strategy
Location: USA
Challenge: Port authority meeting on port land capacity seeking to obtain additional land bank usage from adjacent underutilised US Navy facility.
Solution: Develop a proposal for the management of the adjacent land bank that would result in the port not having to invest capital by offering to manage and market land while still maintaining the Department of Defense’s requirement to deliver short term vacating of the site.
The Net Results: Port did not have to lay out capital and could generate revenues for the Navy and itself and better serve clients.
Client: 2.5m teu submerged development site
Location: Canada
Challenge: In an acquisition negotiation between a port authority and the province the need arose to have a free market value for a submerged site where a 2.5 million teu terminal and railroad causeway were slated to be built. The income approach was not allowed to be used, making the valuation even more challenging. The acquiring party’s valuation was approximately ten times lower than the eventual value determined by our analyses.
Solution: An international assessment of terminals built on reclaimed land was conducted, development costs analyzed and a fair market value determined.
The Net Results: The value developed from the valuation analyses was accepted by both parties and the submerged site was sold.
Client: 2.5m teu submerged development site
Location: Canada
Challenge: In an acquisition negotiation between a port authority and the province the need arose to have a free market value for a submerged site where a 2.5 million teu terminal and railroad causeway were slated to be built. The income approach was not allowed to be used, making the valuation even more challenging. The acquiring party’s valuation was approximately ten times lower than the eventual value determined by our analyses.
Solution: An international assessment of terminals built on reclaimed land was conducted, development costs analyzed and a fair market value determined.
The Net Results: The value developed from the valuation analyses was accepted by both parties and the submerged site was sold.
Client: Port Saguenay
Location:Quebec Province, Canada
Challenge: Over the years, the POS had assembled over 3,000 acres of land to expand the port to meet demand from heavy mining companies in the region wanting port access. Being in a remote area, the challenge was to develop a lease model that would produce lease rates representing fair market values for rent for this type of port land. Based on the highly specialised nature of the use and the existing dearth of true like kind properties in the area, a national survey had to be conducted. The lease rate, methodology and substantiation of the rent had to be easily understood by potential tenants. It was expected that the land bank would be taken up by just four tenants.
Solution: Undertake a valuation of the land as port property and develop a lease model that would determine appropriate lease rates. The model was meant to be used by port staff, use defendable methodology, produce results that would be highly substantiated by market data, and be easily understood by potential tenants.
The Net Results: We were informed that the port was achieving rents that were producing real returns of and on capital invested and were being accepted by the market.
Client: Port Saguenay
Location:Quebec Province, Canada
Challenge: Over the years, the POS had assembled over 3,000 acres of land to expand the port to meet demand from heavy mining companies in the region wanting port access. Being in a remote area, the challenge was to develop a lease model that would produce lease rates representing fair market values for rent for this type of port land. Based on the highly specialised nature of the use and the existing dearth of true like kind properties in the area, a national survey had to be conducted. The lease rate, methodology and substantiation of the rent had to be easily understood by potential tenants. It was expected that the land bank would be taken up by just four tenants.
Solution: Undertake a valuation of the land as port property and develop a lease model that would determine appropriate lease rates. The model was meant to be used by port staff, use defendable methodology, produce results that would be highly substantiated by market data, and be easily understood by potential tenants.
The Net Results: We were informed that the port was achieving rents that were producing real returns of and on capital invested and were being accepted by the market.
Client: Port Authority
Location: Cayman Islands
Challenge: Port Authority of Cayman Islands’ revenues were not keeping up with expense and future infrastructure investment requirements. Recently, government transferred the pension liabilities to the port authority as well, resulting in major accounting losses.
Solution: comprehensive analysis of the port’s assets, business model and revenue streams; creation of an internal port valuation model and lease model; rationalisation of non-port related assets; and scheduling of rate increases using regulatory pricing modelling and structuring to accomplish the goal of profitability and financial self-sustainability.
The Net Results: model will soon be implemented..
Client: Port Authority
Location: Cayman Islands
Challenge: Port Authority of Cayman Islands’ revenues were not keeping up with expense and future infrastructure investment requirements. Recently, government transferred the pension liabilities to the port authority as well, resulting in major accounting losses.
Solution: comprehensive analysis of the port’s assets, business model and revenue streams; creation of an internal port valuation model and lease model; rationalisation of non-port related assets; and scheduling of rate increases using regulatory pricing modelling and structuring to accomplish the goal of profitability and financial self-sustainability.
The Net Results: model will soon be implemented..