UPDATE: T-Ports, the owner of two major grain ports in South Australia’s Spencer Gulf, has officially initiated a structured bidding process for a potential $250 million sale. This urgent move comes as the company responds to multiple unsolicited offers from significant players in the infrastructure and agricultural sectors.
Officials from T-Ports have engaged Nash Advisory to oversee this bidding process, making waves ahead of the Australian Grains Industry Conference taking place on Wednesday. The preferred option for the owner, ICAM, a South Australian alternative investment manager, is a complete buyout, but all avenues are under consideration.
Since its inception in late 2019 with the commissioning of the Lucky Bay export facility, T-Ports has expanded with the addition of the Wallaroo port on the Yorke Peninsula. Together, these ports have the capacity to export between 1.2 million and 1.4 million tonnes of grain annually, serving over 500 growers and connecting South Australia’s wheat and barley regions to lucrative markets in Southeast Asia and the Middle East.
With an investment of $230 million since 2017, ICAM has strategically developed these assets to meet growing demand. Nash Advisory, led by financial experts including Tom Butler and Lachlan Posar, plans to present an information memorandum to potential buyers next week. Interested parties may include major agricultural commodity traders like Louis Dreyfus and GrainCorp, logistics companies such as Qube, and financial giants like Macquarie Group and BlackRock’s Global Infrastructure Partners.
The South Australian grain industry has experienced volatility over the past decade, with a remarkable boom year in 2023. However, current market conditions prompt Nash Advisory to project an EBITDA of between $18 million and $20 million for T-Ports. Drawing on previous sales comparisons, the asset could be valued at up to $250 million, based on a 13-times multiple similar to what Qube paid for the Newcastle Agri Terminal in 2021.
Nash Advisory will market T-Ports as a unique opportunity to invest in a privately owned port—the first new grain port built in South Australia in 60 years. T-Ports operates as its own port authority, allowing it to control shipping schedules and manage logistics effectively. Future growth may be bolstered by expanding upcountry storage sites at Lock and Kimba, enabling the facility to handle more grain.
This developing story highlights the shifting landscape of South Australia’s grain export capabilities. Stakeholders are keenly watching for updates as the bidding process unfolds, which could reshape the future of grain logistics in the region.
Stay tuned for more updates as this story develops.
