Seaport Consultants Canada Inc. conducted several projects for Vancouver Port Authority (now Vancouver Fraser Port Authority or VFPA) and terminal operating companies that involved operational and financial modelling of five container terminals within VFPA’s jurisdiction. All facilities were on sites leased from VFPA on which VFPA had existing or proposed concession agreements with terminal operators. Three of the container terminals were existing operations at which VFPA wished to reach agreement with the terminal operator regarding expansion of capacity under cost sharing arrangements. One of the terminals was an entirely new facility and the last was a conversion of a break-bulk terminal.

In most cases, the objective of the financial evaluations was to project the financial performance of the container terminal development from the perspectives of both VFPA and the private terminal operator. For the new terminal development and the terminal conversion, VFPA wished to know if the terminal project would generate sufficient returns to attract a terminal operating company as an investor and also allow VFPA to meet its investment return needs. The evaluations of the existing terminals provided a basis for renegotiation of site leases to incorporate expansion projects.

 In each case, the work involved estimating equipment requirements, operating systems, staffing, manning, operating costs, maintenance costs, and energy demands. The work included developing a pro forma model to assess the financial performance of the container terminals based on various apportionments of costs between VFPA and the terminal operator and alternative structures of lease arrangements.

Seaport's services included:

• Development of operational plans for the container terminals

• Estimates of equipment requirements and equipment capital costs

• Estimates of container terminal operating costs

• Estimates of terminal throughput charges in the Vancouver market and total revenue per container

• Evaluation of appropriate return standards for container terminal operators

• Development of pro forma financial models

• Evaluations of the financial internal rates of return on project investments to VFPA and the terminal operators

• Evaluations of alternative lease structures