The Shapoorji Pallonji Group (SP Group) is developing the port of Simar. The first phase of the development focused on the construction of coal berths, and subsequent phases focused on the potential for LNG, containers and other cargoes. SP Group is seeking a partner to develop an LNG Terminal. DWA was appointed to provide the guidance on the structure of the revenue it should require in any agreement with a partner and by implication how to prepare a tariff structure for the owner/operator who builds and operates the jetty, storage tanks and evacuation facilities forming the LNG Terminal.

The full range of services and facilities to be provided by SP Group within the context of Simar Port to an LNG terminal were identified. Then a description of the business models and structures of charges and tariffs associated with each of the identified services or facilities was prepared. An understanding of the potential levels of charges that could be levied and are paid at comparable facilities was then developed to provide some indicative benchmarks for SP Group. This included an overview of the cash flow potential of the site as an LNG terminal to the owner/operator with the aim of identifying how they may understand the value of the site and their willingness to pay or ability to negotiate. At the end of the work outline strategies for how SP Group could identify and then negotiate with an owner/operator were identified.