Advising on the risks and opportunities of a new cruise terminal in Ravenna

In summer 2020, Ravenna Port Authority received a PPP proposal from Royal Caribbean Group to build and manage a new cruise terminal. Cruise traffic in Ravenna was mainly focused on transit passengers. The PPP proposal focused on building a homeport terminal and seizing the opportunities of Ravenna's proximity to major north Italian touristic destinations.

How we helped

Steer was appointed by the Port Authority to:

• support the review of the terminal business plan proposal prior to launching a public tender to build and operate it under concession according to the provisions of the Italian Public Procurement law.
• prepare a value for money analysis comparing the project and the alternative for the Port Authority to build and manage the terminal directly.

Our work focused on providing the client advice on the risks and opportunities of the project, including our independent view on:

• traffic and revenue forecasts in a period of very high uncertainty in cruise traffic due to the start of the Covid-19 pandemic.
• the terminal OpEx and CapEx, based on our expertise in transport terminal technical advisory; the business plan financial assumptions.

Successes and outcomes

Our work fed the interactions between the Port Authority and Royal Caribbean Group, which were necessary before launching the tender.

In late 2021 the Port Authority awarded Royal Caribbean Group the concession to build and manage the new terminal through a special-purpose vehicle for the next 33 years.