HRL Morrison & Co., the Wellington based infrastructure investment firm is keen on acquiring the Australian Port of Brisbane. HRL Morrison is funded by the New Zealand superannuation fund and is currently bidding with five other companies for the A$2 billion Queensland state government owned port.

The Queensland state government put the port up for sale and it has attracted a number of firms for the bid. According to Australian media reports HRL Morrison, the manager of Infratil, listed in the New Zealand stock and a well known infrastructure investor, is leading a group of companies bidding for the Brisbane port. However, Morrison & Co would not comment on the emerging media reports.

Speculation has been rife over Morrison & Co’s involvement in the deal, with the New Zealand super fund suspected of being involved in the prospective deal too, given the fact that Morrison & Co manages the fund’s infrastructure investments. The reports, from the Australian Financial Review said that Global Infrastructure Partners, Morgan Stanley Infrastructure Partners, HRL Morrison and Infratil are at the forefront of three consortiums speculated to be taking part in the first round of bidding for the port.

The bidding for the port is expected to attract a lot of competition given the fact that such infrastructure investments are rarely undertaken in Australia. The Queensland state government is disposing off the port as a 99 year lease of the land and infrastructure as well as the shares of the company that is currently operating the port.

However, the state government will retain the port’s land and infrastructure and will also act as a proprietor to private sector lessees. The move to privatize the Brisbane port was taken due to the state government’s plans to shift its focus more to the provision of social amenities such as school and hospitals. However, a spokesman for the New Zealand super fund refused to comment on its participation on the investment but said it was obvious HRL Morrison & Co operate an infrastructure mandate on the New Zealand Super Fund’s behalf.

The Australian Financial Review further said that the five consortiums in the bid will be fully funded by the five in the second week of due diligence. In addition, the New Zealand venture, fronted by HRL Morrison & Co is said to have involved some former employees of the port.  The port had earnings before interest, tax, depreciation and amortization of A$125 million last year.

26 July 2010.