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Ports are entering a new paradigm with exponential developments in technology, demography, economy and society. Global trends have a significant impact on the port and its operations ask for reflection and agility.
- Ports are entering a new paradigm with exponential developments in technology, demography, economy and society. Global trends have a significant impact on the port and its operations ask for reflection and agility. Deloitte Port Services has a strong track record and proven methodologies to assist port authorities in an industry that is on the move.
- Ports are traditional concentrations of petro-chemical industrial activity. Given the ongoing industrial restructuring towards renewable energy and circularity to fight against greenhouse gases, ports necessarily need to adapt in order to survive and hold on to the thousands of jobs and the added value that is created in the port area. The energy transition provides ports with plenty of opportunities to bring new activities and employment to the port area. Leading ports are becoming centres of the off-shore wind energy sector or building refineries that transform urban domestic waste into electricity/heat or even chemicals. Port authorities have an important role to play in this transition. This however requires port authorities to be more than a landlord and work together with governments and scientific organizations.
- Waterfront (re-)development
Due to trends in the maritime industry, many inner city port areas are facing a change in their function. Port areas surrounded by residential and office locations are regenerated and transformed into new, vibrant living and working spaces. Renowned examples of extensive waterfront developments include London’s Canary Wharf, Stadshavens in Rotterdam and Hamburg’s HafenCity. Our team has a broad experience in complex area development transformations and is involved in a number of large waterfront development projects. For this, Deloitte Ports Services combines skill sets in feasibility studies, process management, financial modeling, risk management, PPP advisory, financing and tender support.
- PPP in ports
Public Private Partnerships (PPPs) are common, especially in areas such as port re-development and infrastructure. A great deal of preparation and planning is required for a successful PPP. Additionally, sufficient commitment, effective communication and watertight contracts are other essential success factors. In our experience, allocating risks to those parties with the best ability to manage those risks is the key to realizing true value for the public sector. Deloitte Ports Services has extensive international experience with the design, implementation and process management of PPPs. Through tested methodologies and practical guidelines, we can add value to any PPP initiative. A successful PPP involves clear communication between all parties, management of potential conflicts of interest, financial modeling, risk assessments, management of the bidding process, final negotiations and contract management.
- Port transaction advisory
We believe that a proper transaction strategy is the basis for a successful process execution, whether it be a public or private transaction. From a public authority’s perspective, the transaction process involves determining and designing the transaction strategy, the preparation and execution of the tender process and the concession and contract negotiation with the (private) bidders. From a private investor perspective, a transaction that contributes towards a company’s strategic goals requires sound preparation and evaluation of the tender process, an optimal bidding strategy and strong negotiation of the concession contract.
- Creating synergies between port and city
Ports and cities have long been developed as separate entities and ecosystems. Today, ports and cities merge, becoming integrated ecosystems of economic activity spanning a large, extensive geographical area not limited to administrative boundaries. Whilst each port specializes in specific aspects of the ecosystem, it is the whole that makes ports competitive. Developing and nurturing various aspects of the port ecosystem directly contributes to port agility and port competitiveness. These aspects include economic, physical and networking assets of the ecosystem and Deloitte Port Services identified various strategies to strengthen port ecosystems.
- Economic impact assessment
Deloitte Ports Services assesses the economic value and impact of policy intentions and investment projects, which provides a powerful basis for decision making. Economic impact assessments help businesses quantify the impact of policy intentions / investment projects on and contribution to the economy and provides a basis for assessing policy settings and the economic environment to understand future impacts on their business to support decision making. By providing insights in direct, indirect and induced effects (including GDP, employment and local taxes), Deloitte Port Services provides objective and transparent inputs for decision making purposes.
- Port strategy
Ports are entering a new paradigm with exponential developments in technology, demography, economy and society. Deloitte Port Services supports ports to develop strong visions and identify strategies that gives a port sustainable advantage over its competitors and provides superior financial returns over the long-term. Deloitte Ports Services combines strategic thinking with practical experience of the maritime and transport industry, and consider both current and future factors. We assess external and internal driving forces and evaluate the upside and downsides of scenario’s influencing the strategic direction of a port. It is our firm believe that any strategy should answer five interrelated questions leading to a sustainable advantage over the long-term: what are our goals and aspirations, where will we play, how will we win, what capabilities must be in place and what priority initiatives?
- Port competitiveness
Deloitte Port Services developed the Port Analysis Model, a powerful instrument to assess the relative competitive position of a port in comparison to a range of other ports. The instrument allows for benchmarking factors that determine the competitiveness of ports to attract business and cargo flows. The purpose is to assess the current and future competitive potential of a port as input for discussions around port strategy.
- Corporation tax impact
As of January 2017, European ports are obliged to pay corporation tax (in Dutch, vennootschapsbelasting). Deloitte Ports Services assists port authorities in the Netherlands with preparing for this system change, such as assessing the balance sheet valuation per 1 January 2017 including underlying assumptions (e.g. WACC, value of land lease contracts).
Ports and terminal operators hold very specific real estate and assessing the value of this requires a thorough understanding of the ports business. Deloitte Port Services has extensive experience with assessing the value of specific real estate classes, including ports and terminals.
The Deloitte Port Services team is a cooperation between a variety of professionals with a shared passion for the maritime industry, especially ports and shipping. The team combines the multidisciplinary strengths of Deloitte, including strategy consulting, supply chain, real estate, corporate finance, tax and audit.
More information about Port Advisory
Do you want more information about Port Advisory? Please contact Jurriën Veldhuizen via +31 (0)88 2881636.