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Investors and financial institutions

The services that BMT offers to investors and financial institutions cover the full asset life cycle from identification of investment targets and acquisition support (due diligence), through ownership and further development to exit (divestiture). A typical transport infrastructure asset may be a port or terminal, a stevedoring company, or a transport operator.

Typical transaction cycle from asset acquisition to divestiture

Transaction cycle

Understanding the market context of the investment

A thorough knowledge and understanding of the transport market drivers and key developments (growth, trends, strategies etc.) is the best foundation for sound long-term investments in transport infrastructure assets. Our approach is to investigate the market potential and business risks of assets by developing a set of reasonable scenarios, taking into account the current and emerging markets with their respective macro- and micro-economic issues and their specific competitive context. Our sophisticated trade and traffic/cargo flow simulation capabilities provide forecasts under consideration of different economic and policy conditions. Where appropriate, we carry out sensitivity and elasticity assessments to quantify the expected impacts of upside and downside scenarios.

In addition, we assess the public policy issues likely to affect the target asset. As a consequence, we work out prospects which are soundly based on the analysis of overall market and sector trends and a deep understanding of the competitive and regulatory situation.

  • Trade and traffic forecasts
  • Elasticity and sensitivity analyses
  • Market trend assessments
  • Sector / commodity market analyses
  • Freight transport demand modelling
  • Competitor analyses
  • Turnover (volume and revenue based) forecasts
  • Policy context review

Strategic advice

Our strategic advice leads to responsible and cost-effective solutions which recognise the asset as embedded in its future economic and business context, not just for the next quarter or reporting period. We help investors to generate convincing long term development strategies for their acquisitions.

In particular in markets such as ports & logistics, but also industries with critical supply chains such as bio energy and fuel, we have the right expertise to identify good investment targets or to determine the optimal location for greenfield and brownfield developments.

  • Management Support
  • Identification of investment opportunities with regard to new or existing assets
  • Concessions and procurement assistance
  • Reliance procedure
  • Post acquisition support
  • Project development, management and co-ordination
  • Feasibility studies
  • Strategic market positioning
  • BPR (Business Process Reengineering)

Due diligence

BMT Transport Solutions offers a complete set of Due Diligence services to assist vendors, investors and lenders in their evaluation of transport infrastructure and related businesses. We investigate the inherent strengths of the assets in question and evaluate the associated risks. In addition, we also enhance the value of the assets acquired by providing post acquisition strategic and operational advice.
BMT provides the following elements as part of its due diligence services:

  • Traffic forecasts. The volume forecast for an infrastructure asset lies at the heart of our asset valuation methodology and affects most other aspects of the due diligence process. A rigorous modelling technique, the knowledge of key data sources and the experience across a range of sectors and commodities are essential for providing realistic forecasts. The identification of the upside potential - opportunities for volume growth and value-adding - together with a detailed downside risk analysis ensure that all of the key elements of the investment decision are covered.
  • Macro and microeconomic analyses. Traffic forecasts are based on the macro- and microeconomic context. Changes to the market, the rise of new commodities, and the competitive scenario around the acquisition target all play a role in this. What kind of infrastructure will be developed by competitors? What is the impact of the economic development of the hinterland and the existing and planned hinterland transport infrastructure? How will changes in the regulatory context, such as carbon emissions policies or new security requirements, impact on the attractiveness of services?
  • Captial expenditure (Capex). Planning the long-term capacity needs of a port or other transport infrastructure is a detailed and complex exercise, requiring technical design expertise as well as financial and commercial skills to ensure that capital expenditure assumptions are both adequate and economically viable. We provide a comprehensive condition assessment to ensure the accuracy of repair costs and useful asset life evaluations, whether for buildings, quays, equipment, rolling stock, or other assets.
  • Operational expenditure (Opex). Accurate forecasting of operating expenditure demands a sound understanding of the practical operation of a facility as well as the ability to quantify the effect on costs of key drivers such as volume, capital configuration and inflation. A detailed and rigorous operational model facilitates not only cost forecasting but evaluation of risk and planning of responses to new commercial opportunities.
  • Environmental analyses. An important aspect of acquisitions is the detection, evaluation and handling of inherited burdens such as contaminated sites. Sound environmental risk management also involves assessment of new developments proposed, the implementation and costing of environmental monitoring and compliance, and the management of community expectations. Through co-operation with local partners, we strive to maximise our local knowledge of the political and regulatory context in which the acquisition or development will take place.

Selected references investors and financial institutions

Market due diligence of Terminal Rinfuse Italia Spa (2007)

Client: Babcock & Brown Ltd

BMT Transport Solutions provided an independent expert assessment of the technical conditions of equipment, infra- and superstructure of the three Italian terminals. A market DD was provided in relation to the main commodities handled by the Target Company at its dry bulk terminals in Sacona/Vado, Genoa and Marghera (Venice), i.e. coal and coke, cereals, cement and clinker as well as iron products. The scope of the market DD covered a comprehensive review of the assets (supply side), an in depth analysis of the respective commodity markets and a traffic forecast, which was prepared for coal, cereals (as agrifood) and cement. Read more...

Market analysis, technical and environmental due diligence for independent tank storage facilities, Amsterdam, Malta, Singapore (2007)

Client: 3i Infrastructure

The work was conducted as part of a due diligence process for an investment into three independent oil storage terminals. BMT TS prepared a market study looking at the global drivers and risks of the independent oil storage facility business as well as at the local situation at the three subject locations Amsterdam, Malta, and Singapore. The technical set up of the three sites was reviewed in terms of potential future market scenarios and technical and regulatory developments. In addition, through both document review and site visits, the technical condition of the assets, compliance with technical industry standards and environmental liability issues were also addressed. Read more...

Commercial due diligence of Hamburger Hafen und Logistik AG - HHLA, Hamburg, Germany (2007)

Client: Hochtief

BMT TS assessed the actual market situation and macro market (e.g. demand and supply side) and the relevant competitors (i.e. supply side). Based on the research conducted BMT developed a container traffic forecast for the HHLA terminals for the period of 2005-2025. BMT also provided an analysis, benchmarking and forecast of OPEX. The client Hochtief was enabled to prepare an indicative bid, based on which they were shortlisted for the further process. Read more...

Due diligence for Spanish bulk terminal (Tarragona). Babcock & Brown (2006)

Client: Babcock & Brown Ltd

BMT Transport Solutions reviewed the market setting of the subject faculties and assessed the market conditions applicable to the subject facilities and more generally, the Mediterranean bulk market of the commodities coal, coke, clinker, agro bulk, paper & steel. BMT reviewed the traffic volumes and competitiveness of the subject facilities' tariffs, commented on the nature/tenure of the commercial contracts with customers, identified business competition and market forces, and assessed the commercial risks applicable to the subject business. To assess the future throughput at the subject facilities until 2020, the widely accepted and proven method of elasticity multipliers was used. Read more...

Assessment of future throughput of the Belgian inland container terminal operator Meerhout Container Terminal (MCT) (2006)

Client: Babcock & Brown Ltd

BMT prepared three scenario based traffic forecasts for containerised traffic through the Belgian terminal. Sensitivity related two alternative development paths accompanied a technical baseline forecast. The forecasts were done in 5-year intervals for the period 2005 to 2027. BMT founded its forecast on macroeconomics analysis, on the review of the relevant market trends such as hinterland, related seaport development, infrastructure access and improvement as well as a comprehensive micro economic assessment: catchment area, customers, competition, development and infrastructure plans. Key implications from both macro and micro economic assessment were compiled in a SWOT analysis. Read more...

Pearl - Marina resort development economic impact analysis (2007)

Client: Wealthy Honest Investment Limited

The objective of the assessment was to provide a structured argument identifying the benefits of the resort hotel, property and marina development, at South Lamma, to the local economy. Key tasks included Economic Impact Assessment and Cost and Benefit Analysis.

Market due diligence of 8 terminals in 5 ports, Portugal (2006)

Client: Babcock & Brown Ltd

A market analysis was undertaken in preparation of a potential investment into the subject facilities. The work involved a description and assessment of the global and respective regional contexts and macro-economical trends. Based upon this, BMT developed detailed traffic and transport volume forecasts for each terminal until 2025.