Seaport Consultants Canada Inc.

CA

Corporate Expertise:

----------------------- Port privatization.

Proj: Bojonegara container port feasibility study. Country: Indonesia Contribution:

Container traffic through the Port of Tanjung Priok (adjacent to Jakarta) grew at some 20 to 25 percent a year for the last decade. The Government of Indonesia, Indonesia Port Corporation II (which operates Tanjung Priok) and private Indonesian investors decided to develop a new, private container port in the Bojonegara area west of Jakarta. These parties in turn engaged a consortium of Australian companies to investigate the feasibility of building the container port under a build-operate-transfer contract. The Australian consortium retained Seaport Consultants Canada Inc. and PT Dwipantara Transconsult (an Indonesian consultancy) to assist with the feasibility study. Seaports role included:

A container traffic forecast. The study involved gathering port traffic and national economic data, reviewing the port hinterland, a forecast of total and container traffic for western Java, and an evaluation of the Bojonegara terminal's competitiveness with Tanjung Priok. Development of a ministerial position paper on the rationale for port development at Bojonegara. A review of Indonesian and regional port tariffs, and development of a tariff schedule for the new port. A review of world, regional and local container shipping to choose the design ship for the port. The project forecast that container traffic will continue to grow at high rates, although at growth rates below those of the recent past. Notwithstanding that Tanjung Priok received about half of its container throughput as feeders from Singapore and much of the residual traffic was in second-generation vessels in the intra-Asian trades, the study concluded that the new port should be for post-Panamax ships. Traffic development in Indonesia had reached the point where major shipping lines may add western Java ports to the major Asia/Europe and Asia/west coast USA trades and feed traffic to them from other Indonesian ports.

Proj: Concession for Dar es Salaam Container Terminal Country: Tanzania, Un. Rep Contribution:

Assistance and advice for bid for container terminal concession. Seaport brought together ICTSI, a major international container terminal operating company, and a Tanzanian firm, Vertex Financial Services, to bid for the container terminal operating concession in the Port of Dar es Salaam, an important port on the east coast of Africa. Seaport also assisted ICTSI and its local partner in their bid for the concession. The work involved gathering cost and operational data, preparing national and regional port traffic forecasts, evaluating the concession's financial performance, developing tender documents for the concession under internationally-competitive bidding, and advising on the ultimate bid price. In October 1999, the partnership was successful in its bid for the concession. Canadian International Port Services Inc., a sister company of Seaport Consultants Canada Inc., provided executive and operational expertise to the partnership during the mobilization and initial hand-over period of the terminal from governmental to private operations.

Proj: Initial Public Offering of Pacific Ports Company Country: China, P. Rep. Contribution:

Traffic forecast for the Port of Nanjing. Fairyoung had entered a joint venture to operate the Nanjing Huining terminal at Xinshengwei, the foreign trade area of the Port of Nanjing. Seaport's work involved data gathering in Nanjing and compilation of statistics on economy of Jiangsu Province. Seaport met with the Jiangsu Province Ministry of Communications, State Planning Commission and Commission of Foreign Economic Relations and Trade, China Chamber of International Commerce, Nanjing Commission of Foreign Economic Relations and Trade, and two Nanjing-area Economic Technical Development Zones (industrial estates). We evaluated the economics of container transshipment via Shanghai and Hong Kong, intermodal transport of high-value cargoes between Nanjing and Shanghai, and container transport on the Yangtze River. We reviewed the implications for Port of Nanjing container traffic of Shanghai container port developments and introduction of linehaul vessel calls, creation of the Shanghai International Trade Centre, transshipment cargo restrictions imposed by the Chinese national government, and opening of the Nanjing - Shanghai expressway.

Proj: Port of Bourgas Country: Bulgaria Contribution:

Port of Bourgas expansion project and port concessions. Seaport provided port management expertise to assess the impact of a new bulk terminal on the future operations of the port. Seaport also evaluated options for the transfer of cargo handling activities from the Port of Bourgas Authority, a public corporation, to the private sector as operating concessions. Seaports work included:

Evaluating the ability of the Port of Bourgas (the model port for privatization in Bulgaria) to achieve a competitive environment with private sector participation. Evaluating the port privatization policies of the Government of Bulgaria and providing assistance to the Government to assess the options for private sector participation in ports. Advising the Government of Bulgaria on regulatory changes to facilitate private sector participation and to implement a uniform strategy for the privatization of port activities at all Bulgarian ports. Identifying areas of improvement within the Port of Bourgas necessary as a prelude to privatization and recommending the scope of activities for private sector involvement in line with the governments privatization policies. Evaluating the options for breaking up the port into port concession packages and recommending the port concession packages to be privatized. Developing a privatization strategy and a roadmap of the process to be followed by the Government of Bulgaria to transform port activities into port concessions to be operated by the private sector.

Proj: Privatization of Companhia Vale do Rio Doce (CVRD). Country: Brazil Contribution:

Seaport joined the Merrill Lynch - N M Rothschild et. al. consortium study of privatizing CVRD, the Brazilian state mining and industrial holding company. The consortiums client was the National Economic and Social Development Bank of Brazil (BNDES). Seaport was responsible for reviews of the ports of Tubaro and Ponta da Madeira, and Navegao Vale do Rio Doce S/A (Docenave), CVRDs bulk shipping company. The work involved evaluating the management and operations of the ports, and modeling the ports financial performances over the next 15 years as part of the valuation exercise. The study also involved detailed financial evaluation and modeling of Docenave. As measures of the scale of the project, CVRD was worth some US$10 billion in total and the share offering is US$3.4 billion. The ports of Tubaro and Ponta da Madeira handled between them over 100 million tonnes a year of cargo (Tubaro is the worlds largest bulk loading port). Docenave, then the tenth largest bulk shipping company in the world in terms of beneficially-owned dead-weight tonnage, transported over 30 million tonnes a year of bulk and semi-bulk cargoes.

Proj: Surabaya Port Development Country: Indonesia Contribution:

Traffic forecast for major port as part of a feasibility study of offshore land development. Seaport compiled and reconciled international, regional, Indonesian and local port traffic statistics, gathered national and provincial economic data, and interviewed shipping lines, agents, industrial estate developers and manufacturing companies. Seaport developed an overall forecast model for the port and prepared forecasts by cargo handling mode with a particular focus on containers.

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Argentina, Australia, Barbados, Brazil, Bulgaria, Chile, Indonesia, Japan, Papua New Guinea