Frontera Energy Corp T.FEC

The Value of Puerto Bahia???

[kcac1]

I think the largest asset that FEC may have, has been hidden in plain sight. All eyes have been focused on Guyana when Puerto Bahia appears to be the sure bet to attract multiple buyers and sell for a premium. There are no other large ports in the world for sale, let alone a rare deepwater port connected to a refinery. There is no record I could find of any recent port sales.

It is very rare to have a deep water port, capable of acccomodating Post-Panamax type vessels in the Americas, let alone, one connected to a refinery. (permitted funded and under construction to be completed by years end) 

And far rarer to have one recently built and for sale.

"Our Break Bull terminal has a 290-meter dock, easily expandable to 650 meters and with a natural draft of 17 meters, allowing the handling of modern Post-Panamax type vessels." 

"The value of a seaport is influenced by a variety of factors, which can be broadly categorized into:

1. Infrastructure Quality: The quality of port infrastructure is crucial. It includes the condition of docks, cranes, warehouses, and other facilities that are essential for efficient cargo handling¹.

2. Logistics Performance: This encompasses the efficiency and reliability of logistics services, which directly impact the speed and predictability of cargo movement through the port¹.

3. Economic Impact: Ports that facilitate higher volumes of seaborne trade tend to contribute more significantly to economic growth, particularly in developing countries¹.

4. Geographical Location: A port’s location can affect its accessibility and attractiveness to shipping lines, as well as its ability to serve as a hub for feeder connections and maritime connectivity².

5. Intermodal Links: The availability and quality of road and rail connections to the hinterland are important for the seamless transfer of goods to and from the port³.

6. Operational Efficiency: Factors such as vessel turnaround time and the efficiency of customs procedures can greatly influence a port’s competitiveness³.

7. Costs: Competitive pricing for services and cargo handling can make a port more attractive to users².

8. Port Reputation and Services: A strong reputation for reliability and a range of value-added services can enhance a port’s value².

9. Technological Advancements: The use of modern ICT systems for managing port operations and improving the efficiency of customs procedures can also add value².

These factors collectively determine a seaport’s competitive edge and attractiveness to port users, shipping lines, and investors.

The connection between seaports and refineries is essential for efficient transportation of crude oil and petroleum products. Here are a couple of notable examples:
 

In the Americas, particularly in the United States, there are several deepwater ports connected to refineries that play a strategic role in the country’s energy independence. For instance, the Sabine-Neches Waterway in Southeast Texas, known as the “Golden Triangle,” is home to three of the top 10 refineries in the United States, including the Motiva Refinery in Port Arthur, which is the largest in the nation by production volume¹. This area is significant for the production, trade, and transportation of energy products, with pipelines sending refined products to various regions across the country.

Additionally, the Louisiana Offshore Oil Port (LOOP) is an operational deepwater port for oil imports and exports, and it’s the only port in the U.S. capable of handling ultra-large crude carriers². There are also plans for constructing a new deepwater port for the export of liquefied natural gas (LNG) in the future³.

These ports are crucial for facilitating the movement of energy resources, including the export of LNG, which constitutes a significant portion of the U.S. energy export market. The infrastructure surrounding these ports includes a network of pipelines and storage facilities that support the distribution of energy products throughout the nation and beyond.