Project/Case Overview
Client
Papua New Guinea State-Owned Infrastructure Corporation / Public Sector Entity
Property Type
Port National Shipping Port Infrastructure Portfolio Leasehold Land, Marine Infrastructure
Reason for Service
Fixed Asset Register review and Fair Value assessment of a nationally significant, multi-asset port portfolio
Preston Rowe Paterson was engaged to undertake a comprehensive, portfolio-wide valuation and advisory assignment covering PNG Ports Corporation’s entire operational footprint.
The portfolio comprised highly specialised operational port assets with limited observable market evidence, requiring disciplined application of cost-based valuation techniques and rigorous documentation of assumptions and inputs.
Summary of Scope of Services
The engagement required:
- Verification and restructuring of the existing Fixed Asset Register;
- Identification of omitted or misclassified assets;
- Assessment of Fair Value for financial reporting purposes;
- Separation of assets into land, seabed, improvements, buildings and plant & equipment;
- Consideration of complex long-term State leasehold interests under Papua New Guinea land legislation; and
- Delivery of valuation outputs suitable for audit review and Board level decision making.
Asset Overview
PNG Ports Corporation operates a strategically critical network of ports servicing domestic trade, international shipping, resources exports and community supply chains.
The assets include:
- Leasehold dry land, reclaimed land and seabed areas;
- Major wharf structures, berths, dolphins, seawalls and jetties;
- Cargo sheds, transit warehouses, offices and passenger terminals;
- Residential accommodation for port management and staff; and
- Extensive plant, machinery and marine assets including pilot boats, cranes, generators and specialised equipment.
The assets are geographically dispersed, often remote, and subject to varying construction standards, maintenance histories and remaining useful lives. Many assets are held under Special Purpose Leases granted by the Independent State of Papua New Guinea, introducing unique valuation and risk considerations.
Advisory Insights
Key insights arising from the engagement included:
- Leasehold structures materially influence value, particularly for long-life marine infrastructure with no renewal rights;
- DRC is the most appropriate methodology for specialised port assets where income and transactional evidence is absent;
- Remaining useful life assumptions are critical to both valuation and depreciation outcomes;
- Geographic remoteness and logistics materially affect replacement costs; and
- Transparent documentation of assumptions is essential for audit and financial statement reliance.
This engagement demonstrates Preston Rowe Paterson’s expertise in valuing large scale, specialised infrastructure portfolios within complex public sector environments.
We applied disciplined depreciated replacement cost methodologies, leasehold interest analysis and audit ready documentation to deliver consistent and defensible Fair Value outcomes.
The project highlights our capability in public sector valuation advisory, financial reporting compliance under AASB/IFRS standards, and governance focused asset management support across challenging jurisdictions.
Fair Value assessments were completed for
16
ports nationwide covering real estate and plant & equipment
AASB / IFRS compliant valuation
100%
Entire portfolio valued in accordance with AASB 13 / IFRS 13 and AASB 116 / IFRS 116
We Deal with the Mainstream & Specialise in the Complex for all asset classes
