Legal structure Port of Port of Investment management Municipality of Dutch State Port Development and Logistics Jakarta October 10th, 2011 30% 70% By: Capt. Kees. J. Weststrate Sr. Project Manager Port of International Port of N.V. 2 Investments PoR Investment Management Investments Landlord Port for example: Investment management is involved in the planning of investment projects; Projects in area and participations; Make businesscases, financial consequences of investment decisions, advise board on investments; Financial situation of PoR in the long term. Basins / waterways Some recent projects: Nautical communication systems LNG, Pipeline project, Real Estate projects; Analysis Lahad Datu Malaysia, Businescase Suape Brazil, Businesscase Rewas India, Research investment opportunities Vietnam; Innovative projects GE; Take-over Port of Dordrecht, Valuation Moerdijk etc. Roads Dredging Quay walls Jetty s Land (for example reclamation) Structural investments 175 mln per year (not included Maasvlakte 2) Investment Maasvlakte 2 is 3 bln (to be financed by PoR) 3 4 1
Example LNG Gate 5 Example LNG Gate 6 Investments in the port 2008-2015: 15 billion Investment PoR Investment Gate Buying land Storage tank Preparing land Regassification facilities Land reclamation Pipelines Roads Infrastructure (buildings, roads, lighting etc) within terminal boundaries Slopes Jetties Other Other Total investment 67 mln Total investment 1.000 mln Miscellaneous 4% Containers/Break bulk 14% Infrastructure 24% Biofuels 9% Refinery/tank storage 15% Energy/LNG 34% 7 8 2
Income sources PoR (in mln ) Income sources PoR x 1. Port dues: 52% total income 2. Contract income: 45% total income Land lease 14 249 288 Lease quay walls 3. Other Income (participations etc): 3% total income Port dues Contract income Other income 9 10 Port dues Contract income Port dues are related to cargo volumes Lease of quay walls Tariff per meter dependent on draft; Tariff dependent on: Lease of land: Type of ship Tariff per m2 dependent on Type of cargo Market demand Loading of the ship Competition ROI of PoR and lessee Each year negotiations with business community Specific qualities of the location Commercial instrument Price-elasticity in a certain sector 11 12 3
Lease policy: optimal utilization of the land Lessee has economic ownership In the port area it is possible to lease land (25, 50 yrs) with economic ownership of the land for the lessee during the lease-period; Optimal planning of the port area: No activities that do not belong in a port area Taking back land that is not being used Encourage co-siting and clusters of activities Municipality of Port of Lessee (private companies) Legal ownership Economic Economic land rights land rights land Redevelopment of areas that are not profitable any more To be able to manage land prices, now and in the future A steady source of income for PoR 13 14 Economic rights for lessee Duration of lease contracts With these lease-contracts the lessee has almost the same rights as full ownership of the land e.g.: Standard 25 years + an option of another 25 years By determining the specific characteristics of a lease contract, a starting point is the investment of the lessee. Large investments in industrial activities sometimes have long pay back periods. This can lead to a longer lease period (e.g. LNG terminals). It is possible to encumber the leased land with a mortgage to finance operations It is possible to lease the land to another private company (approval needed from PoR) 15 16 4
Investments Port of Economic impact 700 Prognose s Cargo: 430 mln ton 600 Employment Port of Authority: 1.200 people Prognose s excl Realization 500 Direct employment port area: 90.000 people 400 Indirect employment: > 200.000 people 300 Realization excl 422 Contribution Mainport to Dutch GNP 7% (> 40 billion) 171 17 361 324 200 55 100 235 135 170 121 150 160 2010 2011 2012 0 2007 17 2008 2009 Ammounts: x 1 million 18 18 Funding of investment ambitions Investments Investments PoR in 2010-2012 average 500 mln/year Thank you for your attention Any questions? Investments in of total 3 bln Funding Equity PoR Arrangements (debt financing) for 2,3 bln Dutch state is shareholder ( 0,7 bln) 19 5