At the heart of any port project is the need for a reliable revenue stream, enabling the financing of the project to take place with no, or only limited, recourse to the project sponsors following financial close. In a port or terminal project financing, such revenue may derive from:
- agreements with shipping lines and other port users (such as raw material or finished goods exporting industries) for the use of port facilities
- dedicated ports or terminals for a particular industry such as oil and gas, LNG or other natural resources, containers or cruise and ferry.
Assessing the quality of any given revenue stream requires, inter alia, an expert analysis of the particular contractual obligations, with a particular focus on:
- the term of the contract
- the tariff structure
- currency exposure
- allocation of force majeure risk
- termination rights/compensation for termination.
In order to secure this continuous revenue stream, we help our clients build a stable organisation to face future challenges. On all levels, from shareholding to management over operational matters, on the short and on the long term, Lydian assesses the risks and makes sure the appropriate actions are taken.
Furthermore, in order to bring your business in the port to a successful conclusion, we offer:
- advice on the award, transfer and termination of port and inland waterway concessions and other agreements regarding the use of port and inland waterway terminals, including negotiations and contract drafting
- assistance in the development, construction and financing of both port and inland waterway terminals and logistics platforms and sites
- assistance in real estate planning, building and environmental permits and soil sanitation in ports and alongside inland waterways.