Financial & Management Consulting.

Bermello, Ajamil & Partners has been assisting Port Authorities, Private Companies and Governments in evaluating financial and management aspects of their port operations for over 20 years throughout the world. BA has the most experience in assisting the development and finance of ports and in particularly cruise ports. Our work includes not only the development of the financial and business plan from which negotiations can take place but to the actual negotiation and drafting of user agreements between the parties.

Among Our Services:

Negotiations

The negotiations between cruise lines and ports or governments can take a variety of directions or strategies

Memorandum of Understandings: Where parties agree to cooperate, but not necessarily guarantee traffic or funds.
Usage Agreements: Win which cruise lines agree to guarantee a minimum annual number of passengers usually linked to specific tariffs or rates. These types of agreements usually impose limitations in terms of future rate increases as well as requirements for preferential berth guarantees.
Financial Guarantees: Linked to annual payments. Like usage agreements, these usually also have some form of linkage to tariff and preferential benefits.
Direct Investment: these are agreements where cruise lines have provided funding as a loan to a government in return for certain benefits like preferential berthing. These types of loans usually carry payment provisions with interest.

In some cases, BA has taken the lead position of negotiating agreements and in others BA has been providing the consultation to the Government or Owner behind the scenes. Since BA has been involved in so many of these deals, BA maintains a library of typical agreements.

Our Negotiation Experience includes:

New York Cruise Terminals

City of New York through its Economic Development Corporation (EDC).

BA was instrumental in the development of two cruise usage agreements between the City of New York and Norwegian Cruise Lines and the second, between the City of New York and Carnival Corporation. Collectively, both projects provided the financial underpinnings for $230 million worth of cruise investments in Manhattan and Brooklyn. The Agreements generated some of the highest tariffs in the industry but were viewed favorable by all parties as is what it would take to undertake the works in New York.

• Owner: City of New York through its Economic Development Corporation (EDC).
• Start and end dates: 2005 and 2006. The projects were fully delivered by 2009.
• Value of Agreements: 13 years with a value in excess of US $250 million.

City of Ketchikan, Alaska

BA was responsible for structuring the investment and negotiating a Memorandum of Understanding between the City of Ketchikan, the State of Alaska Bond Bank and individual cruise lines that allowed the State of Alaska to issue $38.5million non-recourse bonds to support the construction of a new berth in the City of Ketchikan, Alaska, a town with a permanent population of approximately 5,000people.

• Owner: City of Ketchikan, Alaska
• Start and end dates: Agreements were completed in 2004 to 2006. The project was completed in 2008
• Value of Agreement: $38,500,000

Port Everglades, Florida

Broward County, Port Everglades, FL .

BA supported Port Everglades with the development of two separate usage agreements one, with Royal Caribbean for the development terminal 18 during the deployment of the Oasis ship and the second, with Carnival Corporation for the redevelopment of four terminals at Port Everglades. These agreements were reached in 2006 and 2008, respectively. Collectively, they account for $100million of investments between cruise lines and the port. BA’s role in the Royal Caribbean deal was to assist Port Everglades and Royal Caribbean as a middle party in developing a plan and Agreement that would work. For the Carnival negotiations, BA produced all of the documentation necessary for supporting the underlying agreements between Carnival and Port Everglades.

• Owner: Broward County, Port Everglades, FL .
• Start and end dates: Agreements were completed in 2006 to 2008.
• Value of Agreements: Two Agreements in excess of $100 million.

NCL Seattle - Pier 66 Redevelopment

Port of Seattle and Norwegian Cruise Line

BA assisted NCL and the Port of Seattle in developing a new concession type Agreement which led to the joint investment of $30 million between the port and NCL. These agreements were reached in 2016 and the project is currently under construction. BA is also acting as the project manager in the delivery of the entire project as well as the designer.

• Owner: Port of Seattle and Norwegian Cruise Line
• Start and end dates: Agreements were completed in 2016. The project is underway now.
• Value of Agreement - $30,000,000

Port of Miami Royal Caribbean Terminal A

Port Miami and Royal Caribbean Cruises, Ltd.

BA was a middle party in developing the concept , assisting Royal Caribbean with internal deliberations and subsequently as a middle party between Royal Caribbean and Port Miami in reaching a new type of concession agreement for the port which granted Royal Caribbean a land lease which allowed them to make a direct investment of over $200 million for the development of a new terminal. These agreements were completed in 2016 and work is currently underway for the development of the facility. Based on the agreements and leases, Royal Caribbean had raised the necessary capital to proceed with this investment.

• Owner: Port Miami and Royal Caribbean Cruises, Ltd.
• Start and end dates: Agreements were completed in 2016. The project is currently under development.
• Value of Agreement: in excess of $200,000,000

Durban, South Africa

BA was and has been hired by MSC cruises to assist in obtaining a concession from the Government for development of a cruise terminal in Durban, South Africa. BA was responsible for preparation of the concession documents in 2014 which was submitted. The process was terminated by the Government at the time and restarted in 2016. Currently, BA is preparing the final documents that will be submitted to the government at the start of 2017.

Town of Bar Harbor/ Maine Port Authority

Maine Port Authority and the Town of Bar Harbor

BA has been assisting the Maine Port Authority and the Town of Bar Harbor for developing a development model for the construction of a pier and landside visitor and tour center. BA prepared the original business plan that has led to the signing of a lease purchase of the property by the Maine Port Authority in late 2016 and currently, BA is assisting both entities in developing their relationship for the development of the facility as well as has begun the early stages of negotiations for the cruise lines to obtain a usage agreement for the facility. The project is expected to be fully negotiated during 2017 so that construction may begin in 2018. The approximate cost of the facility will be $35million.

• Owner: Maine Port Authority and the Town of Bar Harbor
• Start and end dates: Agreements to be completed in 2017. The project is currently under negotiations.
• Value of Agreement: Approximately $35,000,000

Grand Cayman Dart Corporation

BA was appointed in a joint memorandum between DART and the Government of the Cayman Islands to act as the third-party to lead the development of an agreement between the two parties. BA lead that effort and authored full documents which were not consummated at the end. These agreements were based on a significant amount of coordination of legal parties, business, financial decisions and planning aspects of the project.

Durban, South Africa

BA was and has been hired by MSC cruises to assist in obtaining a concession from the Government for development of a cruise terminal in Durban, South Africa .BA was responsible for preparation of the concession documents in 2014 which was submitted. The process was terminated by the Government at the time and restarted in 2016. Currently, BA is preparing the final documents that will be submitted to the government at the start of 2017.

Financial Modeling
Bermello, Ajamil & Partners has one of the most robust financial modeling practices for cruise ports in the world and can custom tailor the financial model to replicate the condition being studied based on the business model and concession agreement that is planned.

Typically, BA builds an interactive model that would allow the Owner, banks or other parties the ability
to test and understand different variables, and easily create sensitivity analysis that can be used for negotiations by allowing studies of different tariffs or rate structures. The models are sensitive to the operating conditions of the area and will also be sensitive to utilization.

Miami master plan 2035 financial model

Port Miami

• Completed: 2012
• Model runs a capital program of close to US$ 2 billion.
• Models the entire Port Miami operation including variables of levels of traffic, all Agreements and leases in place, increases in facilities and allows for growth of both operational and maintenance growth with faculty growth.

Town of Bar Harbor Financial model

Joint contract with the Maine Port Authority and the Town of Bar Harbor, Maine.

• Completed: 2014 and currently being updated.
• Model runs a new cruise port with two berths and an upland area suited for tour operations, visitor center and limited if any commercial.
• Capital program of approximately US$30 million.

Alexandria Basin Cruise Redevelopment, Dublin, Ireland

Dublin Port Corporation

• Completed: 2013 and 2015.
• Included a tariff study of European Ports to help set model sensitivity.

New York Cruise Terminals

New York Economic Development Corporation (NYEDC)

• Completed 2009
• Model set up for negotiations with individual cruise lines, automatically calculated comparable between the different Agreements with different cruise lines to achieve parity and test for MFN Clauses in Agreements.
• Created several operational models based on renegotiations with existing operators as well as potential different operators in Brooklyn or Manhattan.

San Diego Cruise Operations model

Port of San Diego

• Completed: At various times, the last in 2014 but regularly updated over the pastdecade.
• Model used to support investment by the port and test vs ROI.

Singapore Cruise Terminals

Singapore Cruise Tourism Board (STB)

Model for theMarina BayCruise Facility to establish P/L and operatingmodel and subsequently used to negotiate with terminal operator concession.
• Completed: 2012 and currently being updating the model for a new cruise terminal.

US Virgin Islands Port Authority Financial model

USVIPA

• Completed: 2015
• Modeled all of the USVIPA facilities including three islands, ferry facilities, seaplane facilities, cruise facilities in St Thomas and St Croix and cargo terminals at multiple locations. • Completed: 2015

Port of Los Angeles Financial model

BA developed a financial pro-forma and model for the Port of Los Angeles to substantiate investment in cruise facilities at the San Pedro Waterfront Project. The model was based not only on forecasts developed by BA, but also on the different operational schemes that the Port had with port operating companies, parking operators, and others.

Port of Seattle Financial model

BA prepared the financial model for the Port of Seattle to forecast its cruise revenues and justify the investments associated with the Pier 66 cruise terminals and, subsequently the additional two terminals that the Port built.

Port of Ketchikan Financial model

BA developed the financial model for City of Ketchikan for its municipal piers. The model was used to establish financing methods and tariff rates associated with the cruise operations and the investment of close to $50 Million in cruise facilities.

Port of Valencia, Spain Financial model

BA developed a financial model for the new outer harbor Port of Valencia cruise facilities. This model has been used to justify public and private investment in the creation of a four-berth homeport facility at that location. This model is integrated with various levels of cruise usage forecasts allowing for risk assessment by the investors. The model also allows the user to investigate the proforma based on different scenarios for the operational scheme of the terminal as well as a source of funds.

Below is some of the most recent work that BA has also completed modeling for the following cruise
operations:

Ensenada Mexico
The Government of Gibraltar cruise project
George Town Grand Cayman Cruise Dev.
Bermuda Ports
Vancouver Cruise Operations
Skagway Port’s Railway Acquisition GPA

Supporting project financing:

BA has developed financial models and has participated with underwriters, banks, rating agencies in the raising of capital for Port projects including:

PortMiami
Port Everglades
Port of San Diego
New York City
Singapore
Grand Cayman
Panama

Comparative tariff studies:

BA has performed a significant number of comparative tariff studies for ports throughout the Caribbean and the world including:

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BA has played a major role in the development of cruise destinations, private islands, waterfronts, and port facilities by delivering innovative solutions to the growing and changing demands of the world’s seaports and communities. We develop forward thinking strategic plans based upon solid financials and flexible operations to meet the needs and expectations of the clients and users.

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Luis Ajamil & Willy Bermello forged a visionary plan to lead BA into a prominent global, interdisciplinary firm.

In 1992, Luis Ajamil and Willy Bermello forged a visionary plan to lead BA into a prominent global, interdisciplinary firm providing Architecture, Engineering, Planning, Landscape Architecture, Interior Design, and Construction Services. BA focused on several key markets with Maritime being one of the core components of the firm.

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