China Merchants, Hastings, Lease Australian Coal Port

Posted by George Backwell
Wednesday, April 30, 2014
Image courtesy of Port of Newcastle

Hastings Funds Management and China Merchants Group have won a state government auction for a 98-year lease on Australia's Port of Newcastle, the world's biggest coal export terminal, paying a higher-than-expected A$1.75 billion ($1.6 billion).

An initial New South Wales state budget plan had valued the lease on the port terminal at A$700 million, but fierce competition for Australian infrastructure assets coming on to market has seen a steady rise in multiples paid.

The winning bid for Newcastle port came in at 27 times earnings, matching the 27 times earnings Transurban Group, Australia's biggest toll road owner, paid last week for a Queensland state toll road firm.

That compares with multiples of 25 times earnings in a A$5.07 billion deal for 99-year leases for Port Botany and Port Kembla that was won by Industry Funds Management last year.

Local media have reported that other bidders for Newcastle port included Hong Kong-listed Cheung Kong Infrastructure , a consortium of New York-based Global Infrastructure Partners and Deutsche Asset & Wealth management, Macquarie and its partner China Construction, as well as a one from ATEC Rail Group and fund manager TIAA-CREFF.

"It was an incredibly competitive field," State premier Mike Baird told a news conference.

Hastings, an Australian firm with A$7.4 billion in funds under management, and state-backed China Merchants were equal partners in the bid, according to a statement from the Premier's office.

Hastings has a portfolio of utilities, airports, toll roads and ports in Australia, Britain, Europe and the United States. It was a partner in winning bids for a Sydney desalination plant last year and Cairns and Mackay Airports in 2008.

China Merchants, which owns a wide range of transportation, finance and property assets, had A$819 billion assets under management as of end-December.

A record 142.64 million tonnes of coal was exported in 2012/13 from Port of Newcastle, up 17 percent from a year earlier, according to its annual report.

At end-June 2013, the port had a net profit of nearly A$23 million and net cash flow from operating activities of A$27 million.

Infrastructure assets such as toll roads, power stations and ports are in hot demand from investors for their stable, long-run returns and tough barriers to competition.

Australia's state governments, once hesitant to give up tax revenue by selling infrastructure, have had a change of heart since New South Wales sold its desalination plant for $2.3 billion in 2012.

The federal government said last month it would pay states to sell assets as treasurers across jurisdictions agreed to do more to lure local and overseas investors to take a slice of an estimated A$100 billion in infrastructure.

The proceeds from the sale of Newcastle port will be invested to build infrastructure in the state with 30 percent directed towards projects in rural and regional areas. 

(By Swati Pandey; additional reporting by Jane Wardell; editing by Edwina Gibbs)
 

 

Maritime Reporter July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

DryShips Reaches Agreement with Ocean Rig

DryShips Inc. (NASDAQ: DRYS), a global provider of marine transportation services for drybulk and petroleum cargoes, and through its subsidiary, Ocean Rig UDW Inc.

Cruise Industry Wins Key Norovirus Judgment

In what is being seen as a landmark decision, Hill Dickinson is the first law firm to have successfully defended a UK class action case involving a Norovirus outbreak onboard a cruise liner.

MHI: Notice of Absorption-Type Split Agreements

MHI gives Notice Regarding Conclusion of Absorption-type Split Agreements Relating to Transfer of Ship Construction and Hull Block Manufacture Businesses to Two

Contracts

DryShips Reaches Agreement with Ocean Rig

DryShips Inc. (NASDAQ: DRYS), a global provider of marine transportation services for drybulk and petroleum cargoes, and through its subsidiary, Ocean Rig UDW Inc.

MHI: Notice of Absorption-Type Split Agreements

MHI gives Notice Regarding Conclusion of Absorption-type Split Agreements Relating to Transfer of Ship Construction and Hull Block Manufacture Businesses to Two

Hapag-Lloyd Adds Halmstad to Rotation

As one of the top global carriers Hapag-Lloyd offers a comprehensive service network and will add port of Halmstad, Sweden to the Nordic Short Sea Network. As

Ports

Hapag-Lloyd Adds Halmstad to Rotation

As one of the top global carriers Hapag-Lloyd offers a comprehensive service network and will add port of Halmstad, Sweden to the Nordic Short Sea Network. As

BBC Chartering Opens Vietnam Office

BBC Chartering announces the opening of a new representative office in Ho Chi Minh City, Vietnam, starting August 1st breakbulk, and general cargo transportation

Fratelli Neri Orders Damen Tug

One of the largest Italian tug owners, Fratelli Neri S.p.A, ordered its first Damen tug, an ASD 3212, on 21 July 2015.   The vessel will be the first ASD tug

Finance

DryShips Reaches Agreement with Ocean Rig

DryShips Inc. (NASDAQ: DRYS), a global provider of marine transportation services for drybulk and petroleum cargoes, and through its subsidiary, Ocean Rig UDW Inc.

South China Sea Hotline in the Works

China and Southeast Asian nations have agreed to set up a foreign ministers' hotline to tackle emergencies in the disputed South China Sea, a senior official of

MHI: Notice of Absorption-Type Split Agreements

MHI gives Notice Regarding Conclusion of Absorption-type Split Agreements Relating to Transfer of Ship Construction and Hull Block Manufacture Businesses to Two

 
 
Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Salvage Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3168 sec (3 req/sec)