Market Assessment

a) PNG Logistics Market Overview

I. High-level assessment of inter-island logistics market, segmentation, and historical
trends
II. Establish cargo profile and consumption centres along with key operating trade lanes.
Provide vessel segments and size dominating the inter-island trade.
III. Review the macroeconomic situation and demand drivers for growth in the logistics
market.
IV. Identify major service players offering integrated logistics solutions in the PNG market.
V. Identify major ports dominating the inter-island trade and their operating capacities.

b) BMLs current state assessment and Benchmarking

I. Review BML’s business strategy and product offerings
II. Conduct interviews with BML representatives and industry experts
III. Review contractual arrangements that govern service provision in the market.
IV. Differentiate between competition and BML’s service offerings.
V. Differentiate between competition and BML’s port service offerings.
VI. Review BML’s current vessel operating cost by asset and line of business
VII. Benchmark these costs with industry standards.

c) Develop Business Case for Fleet Renewal

I. Identify the suitability of BML’s fleet renewal strategy with current market dynamics like
vessel size, vessel segment, utilisation etc.
II. Review the secondary market and expected value for BML’s proposed new fleet.
III. Conduct a comprehensive SWOT analysis on BML’s relative market standing with
competition, sustainability in the trade and influencing the business case.

d) Develop recommendations for BML and inputs for financial analysis.

I. Develop recommendations for improvement in the business case and enhance service
offerings in the PNG market.
II. Develop cost, revenue and investment projections for the next 10 years, by line of
business, to incorporate into the financial analysis based on BML’s historical
performance, current growth and market dynamics.
i. Revenues (shipping and stevedoring), specifying volumes and tariffs.
ii. Operational costs (also by business line and further breakdown if possible)
iii. Investment plan, fleet renewal program or any investment program foreseen in
the Company’s port terminals in the next 10 years.