Investor Presentaiton
Patrick Terminals
THERE HAS ALSO BEEN A SIGNIFICANT REDUCTION IN KEY RISKS SINCE QUBE'S INITIAL INVESTMENT
Risk
FY17
(Acquisition year)
FY22
QUBE
Terminal Capacity
Industrial Relations
Large vessels
Revenue Quality
Separation Risks
(Disaggregating Patrick from
Asciano) & Technology
Lease Renewal
Other
Excess terminal capacity in the market due to new stevedore commencing
operations in VIC
EA inherited contained a number of conditions that impacted flexibility and
productivity which the union wanted to retain
Risk that Patrick would lose material market share in VIC due to inability to
service large vessels
Overwhelming portion of revenue generated from quayside activities with
limited scope to recover higher costs or return on investment outside
contract negotiation period (every 2-4 years)
Need to separate IT and other systems from the centralized Asciano
systems
Near term expiry of Fremantle lease.
N/A
Market growth has utilized a portion of surplus capacity in the market. Further
incremental capacity will be created as the market grows.
Finalised new 4 year EA in late 2021 with market leading terms
The Port of Melbourne has increased the size of vessels that can access Patrick
and further trials are underway to accommodate even larger vessels. Patrick can
now handle most vessels calling in the Port.
More balanced mix of revenue from quayside and landside users which more
equitably reflects the investments and costs in relation to each segment and
supports a more reasonable return on current and ongoing investment in
capacity and productivity initiatives
Successful separation completed with robust systems and an enhanced cyber
capability. Successfully implemented a new industry leading technology
operating system into the 4 terminals. Implementing other new technologies and
automation enhancements into operations
Substantial extension of tenor with Fremantle lease extended for at least 10
years and extension of Port Botany and East Swanson leases
Development of automated on-dock rail at Port Botany and future rail facility at
East Swanson under construction to further increase capacity and productivity
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PATRIC
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