MTBS stresses the need for bankable port concessions in Latin America through a business case driven transaction approach

MTBS stresses the need for bankable port concessions in Latin America through a business case driven transaction approach

On the 11th of April 2018, MTBS Director Frank Luisman was invited as one of the top industry leaders for the Port Concession Finance panel at the 3rd Latin American Ports Forum. From his extensive global experience as port transaction advisor, Mr. Luisman encouraged early bankability testing in all stages of port transactions to assure successful implementation of port concessions. He emphasised that a business case driven approach to the transactions is imperative to optimize the value and the structure of the port concession. Especially in the case of greenfield port & terminal developments in the region, the success of the concession is ultimately determined by the bankability of the project, which is to be guaranteed by an optimal phasing of the project investments and allocation of risks and responsibilities between the public and private sector. He explained as well that early market sounding is needed for the timely inclusion in the PPP contract of the views and requirements from the bidder’s perspective.

Mr. Luisman’s panel discussion was part of the 3rd Latin American Ports Forum, which was held on the 11th and 12th of April 2018 in Panama City, Panama. The two-day event gathered industry specialists from a variety of sectors to discuss on the trends driving the future of maritime trade and the projects shaping the logistics landscape in Latin America and the Caribbean. Important developments in this region include the continued expansion and updates of the port infrastructure, adapting business models to cope with changes resulting from the cascading effect, and the consequences of the expansion of the Panama Canal.

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