5th GPF Executive Workshop on Feasibility, Valuation and Financing Port and Terminal Projects, 26-28 Nov 2019, Hotel Novotel Singapore Clarke Quay Level 7 Executive Boardroom, Singapore.
Friday, May 26th, 20235th GPF Executive Workshop on Feasibility, Valuation and Financing Port and Terminal Projects, 26-28 Nov 2019, Hotel Novotel Singapore Clarke Quay Level 7 Executive Boardroom, Singapore.
7th GPF Executive Workshop on Feasibility, Valuation and Financing Port and Terminal Projects, 26-28 Nov 2019, Hotel Novotel Singapore Clarke Quay Level 7 Executive Boardroom, Singapore
Dear industry colleagues
Objectives of the Course
Intense, participative learning about all aspects of Ports related corporate finance in six modules with defined learning objectives, subject content, simulation among participants and deliverables by participants over a 3 days’ period.
The end of the course each participant will go away with a clear view of
(1) How to conduct feasibility of port / terminal projects in green/brown field
(2) Assess valuation of the project from the promoters, investors and operators perspective
(3) Evaluation and selection of Financing methods and options by understanding how each component of Ports Corporate Finance works and how it links with every other part of the business
(4) How to achieve Financial Closure and select optimum combination of financing options.
Current trends in the global supply chains clearly suggest a paradigm shift in pattern of customers’ value proposition. In line with value migration investments in the global supply chains and logistics sector and in particular in ports and terminals – whether though greenfield activity or M&A (brown field projects) – have been steadily moving towards creating a better and more integrated infrastructure, both to facilitate supply chain integration and to lower transport costs, thus contributing to regional, national and global economic growth.
Live case studies of DP World, CMA-CGM, Maersk – APMoller, PSA and a number of other leading port and terminal operators demonstrate these trends. These case studies will be used during the three days deliberations encouraging participants to utilize applicable concepts in their own working environment.
The course makes use of case studies, which will follow the logical steps in the project identification to actual execution and implementation process: from feasibility to ppp Implementation and bank-ability.
Course Format
Pre Course Reading Materials
Select Ports’ business – last annual report, investor presentation & call transcript; every participant will be sent a reading pack to be read.
During the course
Overview of corporate finance concepts linked to ports Corporate Finance extensive use of tools.
While this is not a modelling course, we will use excel to the extent possible, participants with limited exposure to excel will be helped by the trainers during the course.
After course
Trainers available for follow up emails, questions on phone.
Distribution of discussion materials.
Form a participant only online group.
Course Introduction
Introduction to financial statements, financial analysis, corporate finance and how the 3 link up.
Introduction to the port business – economic rationale, technical, market, operations – Participants to participate with elaboration of their roles
Port Business Corporate Finance
Overview of recent Ports transaction global activity
Participants to participate with comments on the assets they are familiar with
Program Details (Daily 9.00am to 5.00pm)
Day 1
- Introduction to World Maritime Trade and development of international ports.
- Understanding Role of Ports as vital gateways for national trade and economic development.
- Changing role of Ports as most essential link in the international logistics and supply chain.
- Types of Ports and classification of ports and terminals based on nature of business and customers to be served – passengers and different types / categories of cargo.
- General or multi-purpose ports v/s specialized ports – Advantages and disadvantages.
- Classification of Ports and terminals based on ownership / operation structure.
- Port Business analysis. Understanding dynamics, market forces and elements which impact the ports business.
- Analysis of each factor and extent of its influence on the port business volume and revenue.
- Mapping competition activities and market environment scan.
- Process of Port Development for new project sites and existing project sites.
- Site selection, prefeasibility studies, plans for environment management, project funding and financing options and structure; Legal and commercial terms – concession agreements.
- Site investigation and detailed studies, preparation of bankable Detailed Project Report (DPR), achieving Financial Closure for the project, negotiation of legal and commercial terms and signing concession agreement.
Day 2
- Financial Analysis – using PSA/ APM Terminals/ DP World as Case Studies
- Accounting overview
- The Three Core Financial Statements and what they tell you – Income Statement, Balance Sheet and Cash Flow Statements.
- Financial statement integration
- Core accounting principles
- Ratios for financial analysis and performance measurement
- Cash Flow Statement Overview
- Analysing a cash flow statement
- Working capital management
- Cash conversion
- Impact of a chosen concession system for all players concerned”
- General conditions for concessions
- Governance of the concession policy
- Public –private partnership
- The dual character of a concession
- Tariff policy of a port
- Choosing a Port Over Another – Terminal Operator View
- Granting concession in a port(case study)
- Competition and collaboration between ports
- Rules and regulations for a fair competition between public and private terminal operators:
- Why facilities public and private.
- Reasons to choose a port over another
- Forces stimulating port reform
- Case Study
- Analysis of a live concession bid document
- Simulation – Participants divided into port land lords, competing terminal operators across cargo types – dry bulk, container. Liquid
- Impact of a chosen concession system for all players concerned”
Port Sector Analysis
- Sales growth, operating profit margin and working capital requirements
- Capital expenditure and asset requirements
- Competitive forces and critical success factors to sustain a competitive advantage
- Tools to analyze Comparative advantage vis a vis competing ports in the vicinity
Management and Shareholders
- Review the strengths and weaknesses of management and the influence of company ownership:
- Management performance
- Corporate aims and goals and their effect on the company’s future
- Shareholder structure, support and influence.
Business strategy
- A company’s markets, products, services and competitive position
- Corporate actions underpinning its growth strategy.
Earnings dynamics
- Quality and stability of revenue and cash flow from core operations
- Cost base analysis, profitability and cash flow measures
- Peer and ratio analysis to evaluate performance
- Different accounting conventions and misleading accounting practices
Asset management
- Asset conversion cycle, asset efficiency and investment needs
- General and industry specific ratio and cash flow tools to analyse and compare asset efficiency
Cash flow drivers
- Forecast operating performance and asset investment requirements.
- Financial Risk
- Evaluate the appropriateness of a company’s funding structure given all factors identified
Liquidity
- Financial flexibility: measuring liquidity or payment readiness
- Funding instruments used by companies that can increase the refinancing risk and overall financial risk
Solvency
- Funding structure including off balance sheet obligations
- Debt servicing ability using cash flow analysis
- Rating medians to evaluate a company’s financial standing
- Future cash available for debt service using a simple debt capacity cash-flow model
- Refinancing risk: debt capacity vs. borrowing capacity
- Structure
- Review the appropriateness of existing or new debt instruments
- Debt profiles in view of repayment sources
Day 3
Port Valuation and Financial Modelling
- Port / terminal Market potential and traffic projections for the like of concession
- Hinterland Mapping and competition analysis
- Dynamic value addition and Unique Selling Proposition
- Pricing strategy and business volume sensitivity
- Master / spatial planning and determination of infrastructure / superstructure required
- Capital Expenditure (CAPEX) required in a phase wise manner
- Business volumes, revenue and operating expenses calculations
- Preparation of periodic cash flow and balance sheet
- Financing options – debt and equity
- Ratio analysis and debt serviceability
- Determination of IRR – for the project and equity
- Arriving at project valuation and achieving financial closure
- Building in sensitivity (fluctuation in revenue or costs) in the Financial Model.
About the Course Director (subject to final confirmation)
Mukesh Parikh
Mr. Mukesh Parikh is associated with Global Maritime Industry for over 40 years. He has a distinction of having hands on Maritime Industry experience with continuous involvement in Training and Development throughout his distinguished career.
He has been conducting a number of executive training programs on ports and terminals at Singapore, UAE, South Africa and other international locations, in addition to his current position of Adjunct Professor at Adani Institute of Infrastructure Management.
Mr. Mukesh Parikh has a post graduate degree in Management with specialization in Marketing and Finance. He attended one year training program Professional Shipping at Norwegian Shipping Academy, Oslo.
During his career of 18 years in the Commercial Shipping, he was associated with UNCTAD/UNDP as a Trainer and Course developer. He attended two weeks instructors’ Workshop (Training for Trainers) organized by UNCTAD / UNDP in collaboration with The Ministry of Transport and Ports in Malaysia at Penang Port Commission. He conducted a number of training Programs in the Middle East, South East Asia and Indian subcontinent including developing a training program on General Shipping Management for Arab Maritime Transport Academy, Sharjah, UAE.A sound foundation of Shipping Industry and clear understanding of market and customer expectation and requirement from service providers enabled Mr. Mukesh Parikh to build the next phase of his career in Ports and Terminal Industry.
He worked with The Adani Group in Senior Management position for 10 years from the inception stage of Mundra Port in India and made a major contribution to set up Business Development and Marketing team as well as establish Standard Operating Procedures for the entire spectrum of Operations in the port. He successfully built marketing and operations teams and trained them.
Since July 2014, Mr. Mukesh Parikh has taken up advisory and consultancy role for The Maritime Industry. His assignments cover Business volume estimation and hinterland mapping with competition analysis, Revenue forecasts for the life of the project and financial modelling, investment optimization in line with market potential; Commercial and legal aspects of logistics, cargo handling, warehousing contracts; business excellence and standardization of operating procedures; Organization development, structuring and Manpower planning and training. He has also advised a number of clients about the Concession agreements and entering in to sub-concessions.
Thomas Ng
Thomas Ng has over 28 years of consulting experience in the ports and shipping industry. Thomas is known for developing innovative solutions for players within the ports & shipping industry, — in areas of investments advisory, port strategy, development, marketing, planning & redesign, customer services and port operations; and delivering superior results.
He is the Executive Chairman of The Global Ports Forum (GPF) since 2008. The Global Ports Forum is a platform where all ports stakeholders in the ecosystem- port customers, port authorities, port operators, port people, port suppliers & service providers are gathered together to discuss about issues furthering the interests of ports globally.
Thomas is well-respected in the ports & shipping circles — recognized for his in-depth industry knowledge and far-reaching personal industry network and linkages. Some of his recent port investments advisory work include ports in the Middle East, Africa, Southern Europe, South East Asia, Latin America, etc.
Given Thomas’ far-reaching personal port industry network and linkages, Thomas is often seek out by port investors and port privatisation candidates all over the world for collaborative partnership.
Thomas is invited regularly as speaker & facilitator for Ports conferences, roundtable and executive programs and workshops.
He is the senior port & terminal training expert for the Singapore Ministry of Foreign Affairs (MFA) Singapore Cooperation Programme (SCP) for foreign ports officials for over 10 years. Recent programmes conducted by Thomas include the 5 days executive program in “Port Development and Competitiveness”, Singapore on 12-16 Dec 2016 where Thomas was the key trainer for over 60% of the whole executive program. Some other early SCP programmes that Thomas taught over 20 senior foreign government transport officials included the 2 weeks Singapore MFA Executive Programme in Logistics & Distribution Management on 28 Aug – 10 Sep 2007 & again on 6 Oct – 17 Oct 2008.
Thomas spoke recently at the Transport Intelligence Singapore 2013 Infrastructure panel, together with senior executives from the World Bank & UPS, the Container Depot Association Singapore Conference 2014 on ports and infrastructure, Tank Storage Asia Conference in 2015 and an exclusive Roundtable on Smart ports & ships and Internet of Things in Jun 2016.
On a professional level, Thomas founded the non-government voluntary organization — The Global Ports Council (GPC) in 2008. As of today, over 192 C-level executives globally presents themselves as members of our council. Our prestigious list of Council members are as follows:
Thomas is also a veteran Chartered member (since 2001) of the Chartered Institute of Logistics & Transport Singapore. He serves as a Board Member of the Singapore Branch of Chartered Institute of Logistics & Transport for over 16 years.
Ng Koon Seng
Mr Ng Koon Seng (FCA Singapore, FCCA UK, FCPA Australia) has over 35 years of experience in a global logistics, ocean freight operations and container transportation conglomerate. He has a wealth of international experience from his career in shipping, global container equipment operation; process Optimization, end to end finance system setup for the shipping business start-up operation, transformation, change management, merger & acquisitions and divestures. He was engaged by Jurong Port Pte Ltd in year 2014 as a Finance system lead and business process consultant for a Joint Venture start up Port/Terminal project, providing finance IT project management and translate user requirements into solution concept, prepare training manuals specific to each finance processes and setting up the finance organization, Multi-Purpose Port/Terminal billing system and implementation of the real time integrated Enterprise financial full system from scratch through end to end finance process innovation and design, develop innovation and out-of-box solutions, lean and digitize, user & finance-friendly administration, workflow integrated for Marunda Center Terminal – PT. Pelabuhan Tegar Indonesia, the 1st private international & domestic multi-purpose seaport which focusing in General Cargo & Bulk Cargo (dry & liquid) in greater Jakarta area. The port is a joint venture between Marunda Center Industrial Estate (www. marundacenter.com) Indonesia and Jurong Port Pte Ltd (www.jp.com.sg) a leading international multi-purpose port operator in Singapore. The integrated port billing and finance system is up and live in Marundra Center Terminal.
He was also tasked to do research on the Ports in Thailand, training, financial modelling with Activity-based costing Analysis for the Aggregates and sand Terminal project.
Mr Ng spent 25 years of his career with NOL/APL, a world leader in shipping and logistics services with annual turnover of US$8b., holding various senior management positions from liners services, special cargoes, freight forwarding, shipping agencies, manage PSA’s appropriated Berth scheme for shipping consortia to global equipment operation including M&A of APL, lead Post Merger integration and transformation of the NOL/APL global equipment operation, depots, trucking, rail, land and intermodal operation which involved more than US$1.5 Billion worth of operational cost globally. Head of the NOL global equipment management and achieved significant hard core saving per company’s testimonial thru dynamics operational modelling.
Costs:
On or Before 26 Sep 2019 : The ‘Early Bird’ Rate is USD4995 – Save USD800!
Special Offer! – 3 Delegates For The Price of 2 in This Category! Save USD4995!
From 27 Sep 2019 : The Regular Rate is USD5795
Special Offer! – 3 Delegates For The Price of 2 in This Category! Save USD5795!
Note: All fees stated include luncheons, refreshments and complete set of documentation. It does not include the cost of accommodation and travel.
REGISTER NOW!
To register, please submit the following details to thomasng@globalportsforum.com:
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For cheque payments: To be made payable to ‘Global Ports Forum Pte. Ltd.’ Please do not send post-dated cheque.
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Account Name: Global Ports Forum Pte. Ltd.,
Account No. : 695 477 141 001.
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Kindly note that as we are providing a special rate for ‘early bird’ sign up, we will need to receive your company payment by 26 Sep 2019 to enjoy the discount.
We forward to welcoming you at the executive workshops/forums!
Kind regards
Thomas Ng
Chairman
The Global Ports Forum
GLOBAL PORTS FORUM PTE. LTD.
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#18-11
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Website: www.globalportsforum.com/
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Email: thomasng@globalportsforum.com
Terms & Conditions:
No delegate registration will be accepted without completing registration details and full payment.
Upon receipt of your registration details and full payment, further programme information will be emailed to you including your proforma invoice and, if required, a letter of invitation for entry visa application.
Delegates will not be admitted unless payment has been received in Full.
Flights, Airport Transfers and Accommodation are not included in your delegate registration fee.
Refund Policy – a reimbursement of the registration fee, minus administrative charges will only be made if the participant has notified Global Ports Forum Pte. Ltd. in writing that he/she is unable to attend the event no less than 45 days prior to the commencement of the event. No cancellation is allowed after that, but a replacement with another participant is allowed.
This programme is subject to change without notice, E&O.E
