URGENT UPDATE: T-Ports has officially put its grain port operations in South Australia up for sale, seeking a potential $250 million buyout. The announcement comes as the company has engaged Nash Advisory to manage a structured bidding process following substantial interest from major infrastructure and agriculture players.
This significant move could reshape the landscape of South Australia’s grain industry, which experienced a remarkable boom in 2023. T-Ports operates two vital grain ports located on the Spencer Gulf: Lucky Bay and Wallaroo, both of which play a crucial role in exporting 1.2 million to 1.4 million tonnes of grain annually from over 500 growers. These ports connect local wheat and barley producers to markets in Southeast Asia and the Middle East.
The fund behind T-Ports, South Australian alternatives investment manager ICAM, is looking for a complete buyout but remains open to various options. Since its inception in 2017, ICAM has invested $230 million in developing these export facilities, aiming to enhance operational capabilities and market access.
Nash Advisory, under the leadership of Tom Butler and Lachlan Posar, is expected to reach out to prospective buyers starting next week. Interested parties may include major agricultural commodity traders such as Louis Dreyfus and GrainCorp, logistics companies like Qube, and significant infrastructure investors including Macquarie Group and BlackRock’s Global Infrastructure Partners.
The sale presents a unique opportunity for buyers to acquire a privately-owned port—the first of its kind built in South Australia in 60 years. This strategic asset operates as its own port authority, granting control over shipping schedules and logistics.
Nash Advisory projects an EBITDA range of $18 million to $20 million based on average seasonal performance. Given the 13-times multiple that Qube paid for the Newcastle Agri Terminal in 2021, T-Ports could command a valuation as high as $250 million.
Future growth prospects are promising, particularly with potential expansions of upcountry storage facilities at Lock and Kimba, which would allow for increased grain warehousing capacity. T-Ports utilizes the custom-built transshipment vessel, the MV Lucky Eyre, to efficiently load grain for transportation to deep-water bulk carriers in the Spencer Gulf.
As the bidding process unfolds, industry stakeholders and potential buyers will be closely watching this developing story, which could have significant implications for South Australia’s agricultural future. Stay tuned for further updates on this urgent situation.
