Commercial and operational due diligence for a global terminal operator

How we helped

• Shipping, Logistics & Infrastructure

In the highly dynamic and competitive shipping industry, terminal operators face numerous challenges. Geopolitical tensions such as the China-Taiwan conflict and global trade conflicts, insufficient supply chain resilience, and dynamic market changes (including volatile container shipping rates, and changing alliances) can significantly impact growth and profitability.

Situation

Our client had ambitious growth plans in emerging markets with the aim of acquiring a multi-purpose terminal, while focusing on the long-term strategic direction of the business and sustainable profitability.

AlixPartners’ approach

In this critical phase, we conducted a comprehensive commercial due diligence (CDD) and operational due diligence (ODD) of a terminal for our client. In doing so, we provided a solid analysis of the market position, operational performance, and future prospects in the context of the potential acquisition.

Our goal was to develop a strategic and operational concept that examined the target company's competitiveness. Working closely with the corporate M&A team and regional and international business, we developed a strategic and operational concept that identifies both short-term efficiency improvements and long-term growth, investment and optimization potential.

As part of the CDD, we evaluated market trends (e.g. nearshoring), competitiveness and revenue potential (volume and prices) of the various segments, including container and other general cargo, along with profitability expectations and investment needs. This included a top-down and bottom-up validation of the growth of the respective segments in the relevant geographies, as well as an examination of customer needs and potential expansion strategies.

At the same time, we analyzed the operational efficiency, processes, and cost structures of the multi-purpose terminal in the ODD, including on-site visits, to identify optimization potential. Important areas of focus included process automation, reducing turnover times, and optimizing resource utilization.

Results

AlixPartners enabled the customer to make a well-informed investment decision based on a wide range of scenarios. Drawing on our many years of experience in the shipping industry – coupled with in-depth knowledge of local conditions – our consulting team developed a tailored solution. In a challenging market phase, in which quick and decisive action was required, we helped the company to define its growth plans more precisely and set the course for long-term success – a powerful example of a “when it really matters” engagement.