Strategic locations

With a €30 million bond issue to open later this month Mariner Finance p.l.c. clearly has big plans for the future. MARIN HILI was interviewed by Piers Allen to explain past, present and future trends in shipping and logistics.

Could you please give readers a brief overview of the firms with which you are involved?

Our companies fall under the umbrella of our holding company – Marin Hili Holdings. The group is primarily focused on port and logistics activities through our company, Mariner, which is an independent investor, developer and operator of sea terminals and related logistic activities. Mariner currently has investments in three container terminals – Baltic Container Terminal in Riga, Latvia, Terminal Intermodale Venezia in Venice, Italy, and Durres Container Terminal in Durres Albania.

Marin Hili Holdings has also strategically developed a portfolio of high quality businesses in a

number of areas including the logistics sector, real estate and investment management (Trumpington Street Capital). You were appointed Chairman of the Malta Freeport back in 1987, so you have been at the front line of international trade during a 30 year period of significant change. For you, what have been the most important trends of the last 30 years?

Over the past few decades there have been a number of major developments which have directly impacted and contributed to the almost uninterrupted growth in maritime trade and in particular the container industry. We have seen the ongoing globalisation of manufacturing and consumption, the increased demand for consumer goods, and the growth in logistical services.

This growth has, in turn, forced the nature of trade and its dynamics to evolve, with increased port competition and changes in the industry such as the growth of vessel size to facilitate the emerging trends in the way shipping is conducted. We hear of 3PL (Third-person logistics) and even 10PL. What are the trends that you think will be impacting on the logistics sector over the next ten years or more?

In the future one would expect there to be further innovations in logistics, primarily driven by tech- nological advancements, as well as changes in trade policies such as the continued reduction of trade barriers and the continued improvement in global transport infrastructure.

These trends will present both challenges and opportunities to the logistics sector. Cost and operational efficiency, along with flexibility in the services offered to clients, will be crucial in competing effectively. This will require ongoing investment in equipment and IT, and adoption of industry best practices. Specifically with regards to Malta, what do you feel should be Malta’s strategy as a transhipment hub?

Malta’s maritime sector has developed very well. Its strategic location at both a regional and global level makes it ideally suited for transhipment; optimisation of our location and human resources will continue to be priorities. In order to continue to compete effectively, Malta should continue to invest in the appropriate infrastructure necessary to support the industry. Mariner Group has interests in three separate container terminals, in Latvia, Venice and Albania. Are you interested in expanding into any other countries?

We believe that there are very good opportunities for us to grow our business in new geographies. Our geographic preferences for expansion have us pursuing oppor- tunities in the Baltic, Adriatic and Black Sea regions, as well as the in UK and Mediterranean. In fact we have recently been shortlisted as preferred bidders for the privatisation of Gdansk Cargo Logistics SA which operates a number of terminals within the Port of Gdansk. When looking for a potential container port investment are you looking for operations that are strategically connected to developing markets, are you primarily focused on identifying poorly managed resources which you can develop by applying your own management expertise, or do

you follow another strategy?

Mariner’s strategy for expansion is to focus on developing and managing small-and medium-sized terminals and other related logistic activities. We look for terminal projects where we see there is the potential for growth, either due to the market being less mature and/ or the terminal and related infrastructure being under-developed. Operating in this niche Mariner has strong competitive advantages and can as a result add real value. Moreover, there are a number of criteria which are important, such as the strategic location of the terminal, hinterland accessibility and the physical attributes of the site.

Marin Hili