ProBorea toSpeak at Ports Finance and Investments 2010

ProBorea is proud to have been chosen to speak at the Ports Finance and Investments 4th International Conference at The Grand Amsterdam hotel in Amsterdam on June 1st and 2nd, 2010. The conference will be attended by terminal owners, equity and pension fund operators, bankers, financiers, port authorities, and shipping agents involved in the developing and financing of ports & terminals. The following is an abstract of the paper to be presented. We hope you can attend to hear us speak!

Climate Change Impacts on Port Investments

By Seth B. Scott

Abstract:

Any investment analysis of new and existing ports must include the estimated impact of climate change. Scientists predict several climate change factors within the next 30 years, certainly within the lifespan of new ports, thus impacting the payback of long-term financing. Proper due diligence on the part of investors is essential to protect them from forthcoming changes in the natural environment.

The most obvious impact is the expectation of rising sea levels. Though estimates differ, a maximum projected rise of nine meters may jeopardize many port development projects. While increased sea levels are frequently cited as devastating to lowland areas, they also create new deep-water port opportunities. By carefully selecting developments incorporating adaptability, investors ensure long-term survivability of the investment.`

Opportunities in port development are already appearing as the melting polar ice cap allows new transport routes. Shippers have begun plying the Northeast and Northwest passages, pledging to increase traffic as the traversable season lengthens. Such trade makes possible, and profitable, port locations in previously unthinkable areas, such as Churchill in Manitoba, Hammerfest in Norway, and Novy Port in Siberia. In addition, the utilization of these routes will decrease the use of the Suez and Panama canals, leading to a decline in ports serving traditional routes.

In addition to sea levels and port possibilities, climate change requires a thorough analysis of accelerated storm damage, increased maintenance budgets, regional preparedness, seawater salinity changes, and rising insurance rates. Climate change related issues are not traditionally part of the investor’s analysis process, but they are increasingly important as the climate, and the oceans, change.

For more on this event, please click here.