South-east Australian state port authority New South Wales Ports consortium (NSW Ports), led by Industry Funds Management (IFM) and including Australian Super, Cbus, HESTA, HOSTPLUS and Tawreed Investments (a wholly owned subsidiary of the Abu Dhabi Investment Authority), has been named by the New South Wales (NSW) Government as the successful bidder for the 99-year leases of Port Botany and Port Kembla.
The consortium partners will pay a consideration of $5.1 billion to acquire the 99-year leases for the ports.
IFM CEO Brett Himbury said the transaction would benefit the Australian economy and the people of New South Wales, while having a "positive impact on the retirement savings of millions of Australians for generations to come".
"It is a great outcome for the people of New South Wales and we commend the government for achieving this result," Mr Himbury said.
"Globally, it sets a strong precedent for using private investment to grow essential public infrastructure. Australia continues to be a leader in global infrastructure management and this is a good model for governments."
"With over 80 per cent ownership by Australian industry superannuation funds, the investment will benefit the superannuation savings of an estimated five million Australians – including more than 1.5 million in New South Wales."
Port Botany and Port Kembla are essential infrastructure assets that serve as the primary import and export gateways to New South Wales, Australia's largest economy and home to approximately one third of the nation's population. As the state's only container handling facility of scale, Port Botany serves a significant role in the economy of Sydney and New South Wales.
Port Kembla, located in Wollongong, approximately 90 kilometres south of Sydney, is the country's largest vehicle import facility and serves as a key export facility for coal and other bulk products.
Michael Hanna, head of Infrastructure – Australia (IFM), said: "The consortium has acquired two high quality assets with considerable scope for future complementary development.
"We are delighted to assume the responsible stewardship of these marquee infrastructure assets. Together, we are fully committed to the long-term sustainable development of both ports and to maintaining strong relationships with local communities, customers, employees and governmental bodies.
"We will continue to operate the two ports according to international best practice standards and ensure they underpin the economic growth of the State."
Working closely with the State Government, NSW Ports has developed a "comprehensive plan to ensure a seamless transition of port operations". The transaction is expected to close at the end of May.
Image Source: J Bar