openPR Logo
Press release

Is Private Investment in US Ports About to Make a Comeback?

07-20-2011 08:56 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: InfraAmericas

http://www.infra-americas.com/

http://www.infra-americas.com/

By Michael Dunning

US ports are an attractive asset for infrastructure investors particularly because they are linked to GDP growth. It’s therefore not surprising that during the height of the rush to acquire infrastructure assets in 2006-07, they were at the top of many shopping lists. That led to a number of major US ports changing ownership. But nearly all of those deals ran into difficulties. The reasons why are many and varied. The financial crisis and subsequent global recession played their parts. But the ports sector is distinct from the rest of the infrastructure asset class and there are other, more specific reasons why deals ran into difficulties.

The four major acquisitions in 2006-07 that subsequently had to be restructured were Ontario Teachers’ Pension Plan’s (OTPP) USD2.35bn acquisition of Orient Overseas International’s (OOIL) North American terminals; Highstar’s USD1.3bn acquisition of Ports America; RREEF’s USD2.4bn acquisition of Maher Terminals and; Goldman Sachs Infrastructure Partners’ (GSIP) circa USD3bn investment for a 49% stake in Carrix.

Exact details of what fixes have been employed in each of those deals are sketchy – owing to their opacity. However, the consensus in the US infrastructure market is that they have all received additional equity investments and have all had their bank debt restructured in some form.

Restructuring and Additional Equity
The OOIL deal is said to have fared the least badly but still had to be restructured last summer, according to market sources. OTPP is also said to have put additional equity into the deal. Market estimates are that the figure is around USD300m with some claiming it was as much as USD600m. In addition, it is believed that a further injection of equity is possible but this would be contingent on business performance.

There is also agreement in the market that Highstar’s Ports America deal was restructured – the fund manager is thought to have injected additional equity into the asset on more than one occasion.

To Read The Full Article, click here: http://www.infra-americas.com/analysis/in-depth/883048/indepth-is-private-investment-in-us-ports-about-to-make-a-comeback.thtml

For more information about InfraAmericas (http://www.infra-americas.com/) and find out if you are eligible for a free trial call Ken McAllister on + 44 (0) 207 786 9282 or e-mail at subscriptions@infraresearch.com. Please remember to quote your reference: IAPR19OPR.

InfraAmericas is the most relevant, timely & accurate provider of news, analysis & research about the latest greenfield & brownfield infrastructure projects & deals across the American continent.

1st Floor
4 City Road
London
EC1Y 2AA
United Kingdom
Tel: +44 (0) 207 786 9291
Fax: +44 (0) 207 256 7926
Contact: Celine Brissay
Email: cbrissay@infraresearch.com

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Is Private Investment in US Ports About to Make a Comeback? here

News-ID: 184118 • Views: 1775

More Releases from InfraAmericas

InfraAmericas Case Study: How Canada’s Jumbo CAD1.37bn CHUM PPP Bond Put Inves …
By Vince Calio In the past 12 months, Canada has once again reaffirmed its status as the market leader in North American PPPs by closing deals including the CAD1bn (USD1.05bn) Ottawa Communications Security Establishment Canada (CSEC) PPP in January this year, the smaller Thunder Bay Consolidated Courthouse at the end of 2010 and, more recently, the St. Joseph’s Healthcare Partnership PPP. But selling a CAD1.37bn (USD1.44bn) credit to investors in June
As Interest Grows, Uncertainty Hangs Over Brazil’s Airport Concessions
By Mick Bowen A sense of uncertainty lingers over the coming concessions in Brazil's airport sector as operators, contractors and infrastructure investors attempt to figure out exactly what the Brazilian government plans to do, market sources have told InfraAmericas. Yet the process is irreversible now that it has begun, ensuring that Brazil's most important airports will come under private control in the next year or so, they said. "The model still
Future of Texas Highway P3s Hinges on Next Two Deals
By Mick Bowen The future of P3s to develop highway projects in Texas depends on the shape the next two deals will take, namely the SH 99 Grand Parkway in Houston and IH-35E Managed Lanes project in Denton, market sources told InfraAmericas. Texas Governor Rick Perry signed Senate Bill 1420 (SB 1420), also known as the Sunset Bill, into law in mid-June and cleared the way for the Texas Department of
US P3 Forum 2011: What Happened in New York? InfraAmericas’ Ten Key Takeouts
By Peter Allison The overwhelming message from this year’s event – held Jun. 14 & 15 at the Grand Hyatt Hotel in midtown Manhattan – was that P3s breed P3s. In short, more P3 deals will jump-start the market. It’s not as straightforward as that, however. The US P3 market is almost impossible to define. A P3 in one state may be completely different to a P3 in another. And even

All 5 Releases


More Releases for America

A Love Letter to America
California City, CA. The latest book by Pierre A. Kandorfer reveals an open secret of our life. The secret of the American spirit. It is titled “A Love Letter to America” and is written by somebody who loved the American Dream when he was still in a High School in Europe decades ago. In my vision of the American Dream, America is the only place where a poor, helpless “nobody” had
Latin America Colour Cosmetics Market
The colour cosmetics market in Latin America managed to keep its head above water over 2011-2016. The category recorded a CAGR of 1.7% despite a decline in value occurring towards the end of the period, Chile and Argentina offsetting the impact of economic crisis in Brazil and Venezuela. Direct selling still holds strong as the core channel for colour cosmetics purchases in the region but retail infrastructure is rapidly improving
South America Aviation Market
The South American aviation market was affected adversely by the financial crisis, which had originated in the United States and the sales were impacted adversely by the same, but the market has recovered, since. Furthermore, the good performance of regional jets sold by Embraer were termed profitable by users and could certainly turn the tide as aircraft orders from other airlines continue to increase. Rising income levels in the continent
Made In America Plaques & Awards
Law Enforcement & Veteran owned PatchPlaques.com now offers the best quality plaques and awards made in the USA! Patch Plaques™ is the authentic and original manufacturer of the Patch Plaque. We specialize in Custom Wood & Acrylic Photo Prints, Plaques, Signs and Recognition Awards for any occasion. We can enhance and reproduce any Photo, Logo, Patch, Emblem, Badge, Seal, Insignia or Artwork and make it into a Custom Wood & Acrylic Plaque,
Make America Great Again
Help us open our Veterans' Home We don't know them all, but we owe them all... Lake Ariel, PA: FCPCF Inc. and National Auto Raffle invites you to enter the online Charity Auto & 50/50 Raffles (www.nationalautoraffle.com) and help us raise funds to open the doors of veterans' housing facility and provide housing to the homeless Veterans and their families in need. Every 1 in 4 homeless is a Veteran and its time
Mafi Designs America
Austrian Natural Wood Floor manufacturer establishes themselves in the high end New York Lifestyle market. “Successfully building a luxury Brand in the US is very important to our world wide marketing efforts,“ proclaims a happy Philippe S. Pezet, Partner Mafi USA, Inc & Export/Marketing Manger for the manufacturing company Mafi Holzverarbeitung from Austria. The Mafi brand name is recognized by leading architects and decorators in the Big Apple as being the