Newsletter #332 (View other news stories)
BBI expands port business
SYDNEY, New South Wales, Australia
Thursday, 18 Oct 2007
Australian-based Babcock & Brown Infrastructure (BBI) this week announced it had acquired 100% of two Finnish concession port operators for a combined value of A$144 million. BBI is managed by Australia's second-biggest investment bank, Babcock & Brown Ltd.
The port operators, Oy Rauma Stevedoring and Oy Botnia Shipping, comprise the largest paper port operator and third-largest container port operator in Finland, together handling over seven million tonnes per annum of containers, forestry and dry bulk products.
BBI now controls a portfolio of five European concession port companies with operating concessions in 11 ports throughout Europe. They are forecast to produce combined pre-tax earnings in fiscal 2008 of A$98.6 million.
The purchase of Rauma and Botnia is a strategic link in BBI’s exposure to the Baltic Sea transport corridor – a corridor that is experiencing higher-than-average growth when compared to the rest of Europe.
Both ports have sufficient deep water to enable Handy and Panamax class vessels to use the facilities and both have ample capacity to expand volumes. Going forward, BBI will aim to accelerate the development of both ports through integration with its other European ports and through investment in the capacity development of the terminals.
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