海角视频

Government Warehousing and Logistics Assets Strategy

Middle East

海角视频 worked closely with the government of a Middle Eastern nation to build a strategy around maximising value from its under-used and disparate warehousing and logistics assets, delivering a clear and resilient pathway towards fully maximising the potential returns on these assets.

We were engaged to study the portfolio of national logistics and warehousing assets to determine the value and most appropriate form of privatisation plan.

The team assessed the most impactful PSP approach for dealing with billions of dollars worth of assets.

We began with a status assessment 鈥� a wide reaching process of gathering data, conducting a thorough review of contracts and financial performance for each site.

The project included developing a business case gap analysis and an options analysis to inform the roadmap.

Challenge

The governmental client engaged 海角视频 advisory to study the portfolio of logistics and warehousing assets belonging to a broad range of ministries and determine the most appropriate form of PSP (private sector participation) plan to optimise returns.

With more than 5,000 warehouses of different sizes and standards, spread throughout the nation, under the auspices of 36 different ministries, the project鈥檚 biggest challenge was the process of assessing and recording the scope of the portfolio, before building a wider roadmap to illustrate the preferred approach for maximising value.

Solution

Our asset optimisation and commercial advisory team developed a detailed roadmap for the client to guide them through the process of how they could get their extensive portfolio of warehouses and logistics facilities ready for a privatisation process.

We began with a status assessment 鈥� a wide reaching process of gathering and reviewing data, conducting a thorough review of contracts and financial performance for each site, and building an holistic overview of the current state of affairs for the asset portfolio in the form of a Status Assessment Report.

We then conducted a benchmarking process 鈥� reviewing similar examples of privatisation from around the world and capturing a sense of what a 鈥済ood performance鈥� for a comparable portfolio should look like.

The third stage involved a more in-depth strategic assessment, incorporating reviews of relevant national and entity-level strategies and determining synergies with ideas generated so far for the assets. This was followed by a comprehensive market assessment, looking at existing and future sectorial and national demand, together with extrapolated revenue forecast analyses. We delivered a legal, social and environmental impact assessment, summarising regulatory issues, setting out relevant compliance obligations and highlighting interested parties, risks and opportunities.

The second phase of the project included developing a business case gap analysis, an options analysis to inform the roadmap and make clear what would be required to achieve successful transactions. Our experts also developed a master database to group together all of the data gathered as part of the project for future interrogation and use, as well as a target operating model against the preferred option and a pre-privatisation roadmap featuring key steps against time horizons for full implementation.

Value

The initial process of assessing the assets in itself proved hugely valuable to the client in highlighting the current haphazard state of the portfolio鈥檚 management 鈥� overseen by 36 different entities with no central strategy or overview.

Getting to grips with the portfolio demonstrated that its sheer scale made it a hugely valuable proposition for the Middle Eastern nation. The team assessed the most impactful PSP approach for dealing with billions of dollars worth of assets. The result was a clear and resilient pathway towards fully maximising the potential returns on these assets.