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| Client(s) A Consortium of US and European Investment Banks (Confidential Client). Key Issues An international consortium of investment banks commissioned the project to determine the economic and financial feasibility of acquiring and developing one of the largest ports in a Newly Liberalized Economy in a developing country. The objective is to acquire the port or specific investment projects, make capital and operational improvements and realize operating and capital gains. The major issues of concern are the potential competitiveness of the port in the region, capital investment needs, project financing, market and country risks, price of shares and restructuring operating expenses. Cornell Group’s Role The Cornell Group is responsible for determining the financial and economic feasibility, defining the value of the port, capital investment needs, and determining the price the client should pay for the acquisition. The Cornell Group used its proprietary port valuation and other models and:
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Status The investors are negotiating with the government and shareholders for acquisition of the port. |
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| Client(s)International Finance
Corporation (IFC) Prime Minister of Haiti
Key Issues The Democratization of Haiti required that the State-owned ports, airports, banks and telecommunications enterprises be modernized and restructured to compete effectively in a free market environment. The government wished to privatize all the ports to attract foreign investment capital and management expertise for modernizing the country’s ports system.The Cornell Group’s Role The Cornell Group was responsible for developing a restructuring plan for the ports, developing business projections, defining facility investment needs, attracting new investments and defining a new institutional and fiscal responsibility structure for the country’s ports system.Additionally, we were required to assist government of Haiti in transferring operating control of the international port of Port-au-Prince to a private operator. In preparation for privatization, The Cornell Group:
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Status Final reports and recommendations have been submitted to and approved by the Prime Minister. Bid invitations were developed and sent out to twenty-one international terminal operators. |
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| Client(s)International Finance
Corporation (IFC) Prime Minister of Haiti
Key Issues
The Democratization of Haiti required that the
State-owned airports, ports, banks and telecommunications enterprises be modernized and
restructured to compete effectively in a free market environment. The government wished to
evaluate restructuring and privatization alternatives to attract foreign investment
capital and management expertise for modernizing the country’s airports.
The Cornell Group’s Role The Cornell Group is responsible for conducting feasibility analyses for restructuring and privatizing the entire airports system in Haiti, attracting new investments and restructuring tariffs and the institutional and legal structure. We are currently performing several studies to assist the government of Haiti in restructuring and modernizing the country’s airports system, including:
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COMPETITIVE TARIFF ANALYSIS
Status The initial restructuring options reports have been presented to the Prime Minister for review. |
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Client(s)
Key Issues The National Port Authority of Guatemala has determined the need to develop additional container cargo handling and cruise ship terminal facilities at the Pacific port of Puerto Quetzal, at an estimated cost of $50 million. The Authority commissioned a study to evaluate the strategic and economic need for the expansion, and develop a design for the new terminal. The final objective is to develop a strategic business plan and loan documents to apply for financing for the project from the Central American Development Bank. Cornell Group’s Role The Cornell Group was responsible for conducting the economic feasibility analysis and evaluating the strategic need for the container cargo and cruise ship terminal, as well as providing assistance in developing the loan application to the Central American Development Bank. Major areas in which we provided analytical assistance and advice were:
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Demand And Supply Analysis
Status The Strategic Business Plan, Economic Impact Study and loan application documents have been submitted to the Central American Bank for review. |
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Client(s)
Key Issues The ports of Songkhla and Phuket were constructed in 1988 by the Thai government to provide suitable outlets for export cargo from Thailand’s Southern Region, facilitate direct imports to the region, and stimulate economic development in the region. With cargo and passenger growth approaching capacity, the government wishes to develop a strategic business plan and economic feasibility analysis to assess the need for additional port facilities and infrastructure. Cornell Group’s Role Funded by the Asian Development Bank, The Cornell Group is conducting financial, operations and organizational analyses to update the Master Plan for two ports, and economic analysis to determine the need to build additional port facilities. The project requires us to:
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The exhibit shows the Economic and Financial Internal Rates of Return (EIRR and FIRR) for two investment alternatives
Status A draft final report on economic feasibility and strategic development alternatives has been submitted to the Asian Development Bank for review. The next step may require implementation assistance. |
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| Client(s) Bechtel. USAID. CEO - Bureau of Infrastructure Investment. Key IssuesThe Government of Sri Lanka has determined that sustained economic growth must occur through liberalization of the trade regime and increased foreign investment through privatization of State-owned enterprises. The Port of Colombo is a key driver of trade and directly affects economic growth of the nation. The Bureau of Infrastructure Investment has invited consortiums of qualified foreign and domestic investors to bid for developing and managing a container terminal in the port. The Cornell Group’s Role The Cornell Group is responsible for evaluating the feasibility of privatizing the Queen Elizabeth Quays and the Outer Harbor. Our objective is to evaluate the proposals submitted by the competing bidders and assist the Government in negotiating a deal that would provide the highest financial, economic and social value to the country. Our work includes:
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The Cornell Group has developed a sophisticated "Enterprise Valuation" model to determine the highest shareholder and economic value that the Government can extract from the deal. Status The Government of Sri Lanka selected a bidder and The Cornell Group assisted in negotiating and closing the deal. |
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| Client(s) US Agency for International Development (USAID), Russian State Property Committee (GKI), Russian Ministry of Transport, Booz Allen. Key Issues The port of St. Petersburg, Russia, has been losing cargo volume and market share due to deteriorating facilities, low productivity, high operating costs, and poor management practices. A government mandate was issued for the port of St. Petersburg to undergo restructuring, develop strategic business plans, modernize facilities and attract foreign investment. The Cornell Group’s Role Funded by the USAID, The Cornell Group’s Principals are helping the GKI to restructure the port, separate it into several independent business units, identify new business opportunities, develop strategic business plans for each business unit and, develop a plan for the sale of shares of the port. The Principals of The Cornell Group, have been working for the past twelve months with the port management, the GKI, the St. Petersburg Mayor’s office and the Ministry of Transportation, and have developed the following reports and recommendations:
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Status The Russian Government has selected and is implementing one of the recommended restructuring and strategic business development alternatives for the port. |
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Client(s)
Key Issues To obtain financing from The World Bank for infrastructure modernization and economic development, the Venezuelan government was required to implement several economic reforms. These included the restructuring, privatization, and sale of several of the country’s transportation, public utilities and telecommunications enterprises. Cornell Group’s Principal’s Role The Cornell Group’s Principal was responsible for assisting the Venezuelan government’s Privatization and Investment Fund to privatize eight public ports. The work involved:
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The exhibit shows a competitive cost comparison of handling a typical ship at various ports in the Caribbean, Central America and the US. Status All ports have been transferred over from the federal to the State governments, and successfully privatized as landlord ports. |
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| Client(s) European Bank for Reconstruction and Development (EBRD). Haskoning. Key Issues Immediately after the liberalization of the economy in the former Soviet Union, the European Bank was searching for near-term investment opportunities that would help rebuild the economy of the former Soviet countries, and prepare them for competition in a new business environment. Cornell Group’s Principal’s Role Working with a team of eight European and US consulting firms, The Cornell Group’s Principal was responsible for surveying the entire waterborne transport sector in Russia, Ukraine and Kazakhstan, and identifying feasible near-term investment opportunities for the European Bank and private European investors. This required:
The results of this work included:
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Economic Parameters for Assessment of
Investment Opportunities
Status Selected investment opportunity recommendations are currently being implemented. Illichevsk Container Terminal Feasibility Analysis
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PHONE: (703) 877-2080. FAX: (703) 877-2081
Email: cornell@thecornellgroup.com