Associated British Ports ("ABP") is the United Kingdom's largest and leading ports group and handles approximately 25% of the United Kingdom's seaborne trade by weight.
ABP owns the port lands and water rights for 21 ports throughout England, Scotland, and Wales which translates to approximately 12,000 acres of freehold property.
Key Facts and Figures
The ports handle various cargos including bulk commodities, cruise and ferry passengers, automobiles, and containers. ABP's activities cover port operations, dredging, marine consultancy, as well as a joint venture in a container terminal business, DP World Southampton.
Staying ahead in the ports business means continued strategic investment in the physical infrastructure and equipment, the support of experienced staff and sound governance and government relations. Borealis invested in ABP alongside partners GIC, Goldman Sachs, and Infracapital Partners, with the consortium taking the then publicly traded firm private in August 2006.
The ports business in the UK is attractive as an investment because, as an island nation, the UK relies heavily on a dynamic and sustainable operating port environment to ensure its long-term trading relationships and economic wealth. In 2011, 95% of the UK’s international trade by volume was handled through seaports*. Combined with its status as a strong, transparent, G8 country and the high cost of switching for customers, this provides a stable and long-term outlook for the business.
ABP’s business aligns with Borealis’s focus on seeking to deliver consistent operating performance in addition to the long term benefits of capital appreciation.
With a combined focus on operational excellence and commitment to community and sustainability, ABP impacts the lives of not just of the 2,000 individuals who directly work for the group, but for the large number of Britons who work in the import or export business and rely on the world class operations at ABP. ABP’s ports support employment of 84,000 total jobs in the United Kingdom.
ABP is just one investment in Borealis’s multi-billion dollar transportation portfolio, which also includes High Speed 1, Detroit River Rail Tunnel and Confederation Bridge, among others.
*Source: Department for Transport
Information contained in this case study is current as at 22nd May 2013.