Babcock & Brown acquires Italian port operator

Sydney-based global investment firm Babcock & Brown Infrastructure (BBI) has acquired a majority stake in Italian concession port operator Terminal Rinfuse Italia S.p.A (TRI).

TRI runs operations in Genoa, Savona and Venice

It is BBI's fourth European concessional port acquisition this year.

BBI paid $78.7 million for a 50.3% share of TRI, which is the largest dry bulk port operator in Italy.

TRI currently runs operations in the ports of Genoa, Savona (Vado) and Venice with the length of the current concessions ranging from 13-18 years.

These ports have sufficient deep-water capacity to enable handy and Panamax vessels to use the facilities.

TRI handles approximately eight million tonnes of dry bulk cargo per year, with half that figure consisting of coal and coke products.

BBI's portfolio of four European concession ports has a total combined Enterprise Value of about $748 million, in which BBI has a combined proportional ownership of about 61.5%.

BBI had in July this year purchased a majority stake in Belgian port operator Manuport Group.

Manuport, which owns the largest white sugar storage facility in the world, handles more than 8 million metric tonnes (mt) of sugar, fertilizers and minerals per year.

It has long-term concessions over approximately 4.7 kilometres (km) of berths and 70 hectares (ha) of land in the Belgian ports of Antwerp and Ghent.

BBI's other two European concessional port acquisitions are a 51% stake in Spain's TPS Tarragona Port Services S.L. and a 51% stake in Belgium's Water Container Transport.

Reports say that TRI presents BBI with the ability to acquire a significant share in the Italian dry bulk terminal market, while at the same time further strengthening its position in the strategic Northern Mediterranean bulk port sector.

Between TPS Tarragona Port Services S.L. (which BBI acquired a majority of in May 2007) and TRI, BBI will now control over 16 million tonnes of traffic per year through four Northern Mediterranean ports.

BBI is now positioned as one of the largest European Mediterranean bulk port operators.

Like Manuport, the acquisition of TRI will be immediately accretive to BBI.

Going forward, BBI will aim to accelerate the development of the TRI ports through integration with its other European ports and through investment in the further development of the terminals.

Other flagship maritime port-related assets in BBI's portfolio include the Dalrymple Bay coal terminal in Hay Point, Australia and a stake in UK's PD Ports.