Euroports, Europe and China
– Large diversified port portfolio
Interest: 40%1
Description
Euroports owns a large diversified portfolio of port concession businesses in key strategic locations in Europe and China, handling over 50 different types of products.
Regulatory Environment
Unregulated.
Customer Base
Mainly servicing industrial customers in the immediate vicinity of the ports under varied contract terms. The majority of key customers have been with the respective port businesses continuously for between 10 and 30 years.
Significant Barriers to Entry
- Extensive infrastructure in place: cranes, berths, warehouses, inloading and outloading equipment.
- Highly integrated into customer supply chain.
Revenue Assurance
Mixture of long-term and short-term contracts. Several locations face limited competition for key products handled, which provides additional stability to cash flow.
Growth Opportunities
- Volume growth from increasing demand for bulk and general commodities.
- Cross-selling opportunities to develop additional commercial business with existing customers.
(1) As at December 31, 2010, Brookfield Infrastructure’s interest in its European port operation was 60%; however its ownership was subject to a share equalization scheme that will adjust the aggregate interest of the partners in the European port operation based on performance of the port operation in the years ended December 31, 2012 and 2013. Subsequent to year end, an agreement was reached by all relevant parties subject to certain closing conditions, and as such, Brookfield Infrastructure’s ownership decreased to 40%.