AusRAIL, Market Sectors

Port sale deal done for Botany and Kembla

<span class="" id="parent-fieldname-description"> Port Botany and Port Kembla have changed hands for a cool $5.07bn. </span> <p>New South Wales treasurer Mike Baird confirmed the 99-year lease of the two key ports to a group called New South Wales Ports Consortium.</p><p>NSW Ports Consortium includes Industry Funds Management (IFM), Australian Super, QSuper and Tawreed Investments Limited, a subsidiary of the Abu Dhabi Investment Authority (“ADIA”).</p><p>QSuper’s investment is to be managed by Global Infrastructure Partners (“GIP”).</p><p>The deal followed a six-month competitive bidding process.</p><p>Baird said there would be net proceeds of about $4bn to be invested in the NSW Government infrastructure fund – Restart NSW.</p><p>“This is an outstanding result for the people of NSW, which has exceeded our expectations,” he said.</p><p>“It is the largest ever NSW Government transaction, in terms of net proceeds.”</p><p>According to the Government, the Port Botany deal meant more than $4.31bn from the Port Botany transaction and A$760m from Port Kembla.</p><p>“This is a massive boost to our delivery of our record infrastructure program across the State,” Baird said.</p><p>Net proceeds from the two leases are expected to be invested in Restart NSW, with 30% of funds reserved for project in regional areas and a further $100m dedicated for Illawarra infrastructure projects.</p><p>Baird said a small number of Sydney Ports Corporation and Port Kembla Port Corporation employees would transfer to the port lessee.</p><p>The transaction is expected to close on 31 May 2013.</p><p>The Australian Logistics Council (ALC) praised the sale, saying the awarding of a long-term lease for the ports to a consortium which includes a number of Australian industry superannuation funds “demonstrates the super industry is prepared to invest in logistics infrastructure assets when the right projects are offered up by government for investment.”</p><p>“It also sends a message to governments they should continue focusing on the identification of infrastructure assets that are appropriate to be transferred to the private sector as a means of raising much needed funds to boost national freight efficiency,” ALC managing director Michael Kilgariff said.</p><p>“With this lease reaping more than $5bn, it is clear there is strong interest from the market and I encourage other governments to consider which of their assets could be sold or leased in a similar manner to improve national productivity.”</p>