Access fees for transportation, storage and handling of energy, freight and bulk commodities
Our transport and energy platform is comprised of businesses in the transport and energy sectors that provide transportation, storage and handling of energy, freight and bulk commodities. These businesses have either price floors and ceilings as a result of regulation, such as our North American Gas Transmission Operations and our Australian Railroad Operations, or they are unregulated businesses, such as our UK and European Port Operations. Our transport and energy platform is geographically diverse with pipelines in the U.S., ports in UK, Europe and China, and a rail network and energy distribution business in Australia.
Key Attributes
- High barriers to entry, often with very few substitutes in the respective local markets
- Stable revenues supported by long-term contracts or customer relationships
- Diversity of businesses mitigates the impact of fluctuations in demand from any one sector, commodity or customer
- Well positioned to benefit from increases in demand for commodities and the global movement of goods
- Approximately 70% of the EBITDA is supported by regulated or contractual revenues
Objectives and Performance Measures
Our objectives for our transport and energy platform are to provide safe and reliable service to our customers and to meet their expansion needs in a capital efficient manner. If we do so we will be able to charge a fair price for our services, and we will be able to earn an attractive return on the capital that we invest to increase the capacity of our operations. Thus, our performance can be measured by our revenue growth, EBITDA margin, as well as our AFFO yield.