PORT OF PORTLAND

Transport

ASSET DESCRIPTION

  • Deep water seaport servicing the Green Triangle region of Victoria; an area abundant in natural resources
  • The Port owns a portfolio of freehold property and cargo handling infrastructure
  • 50% equity interest
  • Board representation

INVESTMENT FUNDAMENTALS

  • Strong geographical position; transportation economics result in a trade-advantaged export catchment zone. ie. price of land transport discourages export from other ports
  • Diverse customer base and a high proportion of revenues derived from long term relationships with key clients, many of whom have invested significant amounts in on-port infrastructure

KEY RISKS AND MITIGATION

  • Trade risk – diverse customer and commodity base mitigates market impacts
  • Refinancing risk – very low level of leverage at 30% of enterprise value
  • Regulation – a shadow building blocks approach to port pricing ensures that the impact of regulation is likely to be minimal, if not a positive