For a proposed greenfield port project, Moffatt & Nichol’s combined commercial and technical capabilities supported the client’s decision-making process and subsequent development.
Moffatt & Nichol was engaged by DP World to perform commercial and technical due diligence in support of raising project finance for a greenfield port project in Posorja, Ecuador.
The commercial focus was to identify the critical success factors and key risks associated with the project through detailed qualitative and quantitative analyses of the port and the market(s) in which it operates.
Moffatt & Nichol’s port and shipping consultants conducted in-country interviews with local stakeholders, including the port authority, shipping agents, customs brokers, logistics providers and beneficial cargo owners, which provided valuable insight into key market dynamics and supply chain patterns, and identified the main drivers influencing cargo routing and port/terminal choice within Guayaquil and the wider region. Traffic and revenue projections were produced based on various macro-economic drivers, and supplemented by the key findings from the stakeholder interviews.
Moffatt & Nichol’s also undertook an independent engineering review, which looked at all documentation and included a site visit. In addition to reviewing the key components of the engineering programme, Moffatt & Nichol prepared a Capex assessment in support of the construction budget and construction schedule reviews. The key focus was to assess the adequacy of the site, suitability and completeness of the design bases of the construction, cargo-handling equipment and related correlation to anticipated cargo volumes.
Moffatt & Nichol was retained by the client in 2018 to provide an update on the previous due diligence work undertaken and we have since been engaged to provide post-financial close monitoring services in the form of quarterly reports assessing the performance of the business.
