The consortium that has acquired the 99-year leases on Port Kembla and Port Botany says the deal will boost the retirement savings of millions of Australians.
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The consortium partners will pay $5.07 billion to acquire the leases for the ports.
The consortium is led by Industry Funds Management (IFM) and includes AustralianSuper, Cbus, HESTA, HOSTPLUS and Tawreed Investments Limited, a wholly owned subsidiary of the Abu Dhabi Investment Authority.
IFM CEO Brett Himbury said the transaction would benefit the Australian economy and the people of NSW, 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 NSW 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% 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 NSW.”
The consortium recognises the ports as essential infrastructure assets which serve as the primary import and export gateways to NSW. Port Botany is NSW’s only container handling facility of scale and Port Kembla is the country’s largest vehicle import facility, and serves as a key export facility for coal and other bulk products.
IFM head of infrastructure Michael Hanna 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 stakeholders, including local communities, customers, employees and governmental bodies.”
Mr Hanna said IFM was well placed to lead the consortium given its experience in global infrastructure investments and specifically in strategically important gateway assets such as ports and airports.
“We will continue to operate the two ports according to international best practice standards and ensure they underpin the economic growth of the state,” he said.
