CDB PresentationMay 2016

Nassau Container Port

Gladstone Freight Terminal

PPP and Equity Financing

• Private Shipping Sector funds Design, Legal and Finance Plans - $1.1 Million in Seed Capital

• Key Elements of Public Private Agreement• 10% IRR to the Port Company• 20 Year Exclusivity• Private Sector to Manage Port Company• Board consists of 4 Private Sector and 3 Government Seats • Port Company leases land from Government• Port Company and Port Licensees responsible for all

infrastructure, superstructure and equipment• IPO once operational to broaden ownership base

• Government and Shipping Sector each contribute $20 Million in Equity for a total of $40 Million

• IPO raises $10 Million via 11,000 new shareholders

Bank Financing

• 2011 Prime Rate at time of Project drawdown 4.75%• Non-Recourse Financing as Govt owns the Port Lands• $43 Million Project Bridge Financing with commercial bank at Prime + 1%

or 5.75%• Bridge Facility retired in 2014 following a Preference Share Offering• Preference Share Offer introduced at $21 Million and 5.5.% and $15 Million

over subscribed • Long Term Bank debt of $5 Million at Prime + .25%• $3 Million OD Facility “if” needed Prime + .25%

Lessons Learnt• Bridge Financing Deal presented Financial challenges due to

limited flexibility in post development phase• Fixed Rate Preference Share attractive in Economic upturn but

may present finance cost concerns during an extended downturn• In 2010 Multilateral financing was considered and the terms and

process were determined to be too onerous at that time

Operating Structure

Port company responsible for and employs personnel:• Facility Security (Mix of Port Employees & Contractors)• Crane Operations (owns cranes and employs maintenance and operators)• Facility Maintenance• Person & Cargo Access and Egress controls

Terminal Licensees • Lease space from the Container Port and handle their own cargo/containers• Employ their own personnel• License Agreement requires Licensee to assist competing Licensee upon

Port instruction

Training• Line Staff integral to SOP “identification” & “production”• Line Staff are financially incentivized to update SOPs• Training of SOPs occurs with Port employees and Licensees• Port Employees receive an average of 40 hours of training per year

Why Invest in TechnologyBefore• Truck visit in Port took 50 minutes• Trucker exits truck and assists Terminal operator to locate container• Trucker enters ISPS area and waits for vessel and or Container Discharge• Vessel pre and post operation required considerable time • Generally the ICT systems in the port community operated independently• Customs controls were manual and disjointed• Terminal Operators/Carriers/Stakeholders unaware of individual terminal

performance

After• Truck visit now 20 minutes due to TOS• Trucker does not search for Containers (Safety!)• Trucker only granted access when container is available for collection• Vessel pre and post operations are supported by TOS• TOS introduces an ICT based tool which offers greater control to Port and Customs• TOS supports SOLAS/IMO rules like Container Weight Rule• TOS promotes productivity as performance is easily tracked • TOS partially responsible for a 50% reduction in Vessel time in port

About UsAPD Limited is the owner and operator of the Nassau Container Port and GladstoneFreight Terminal, with the mission to facilitate Port growth and build a bridge to a newand more prosperous future for Bahamians. Formed in 2009, the company isresponsible for the design, development, construction, management, operation andmaintenance of the 56.66 acre Nassau Container Port (NCP) and the 15 acre GladstoneFreight Terminal (GFT). NCP celebrated its formal opening on May 10, 2012 with GFTofficially launched on August 15th, 2012. The latest annual report can be located atwww.nassaucontainerport.com.

APD Limited is available for:• Port Development Consultancy• Management, Operations and ICT Consultancy• Management and Operations Services

Please direct enquiries to:Mike Maura, CEO,APD Limited,Nassau Container Port, P.O. Box SP-63958,Nassau, Bahamasmmaura@apdport.com

Thank You