An international port asked the KPMG Global Asset Management Competence Center to valuate their asset portfolio for regulatory reasons, as well as setting port tariffs and contract negotiations with the port’s clients.
Besides, the port wanted to have the opinion of an accredited asset management specialist to assess the quality of the management of the port’s assets. Based upon this analysis, recommendations of asset management leading practices had to be made.
The KPMG Global Asset Management Competence Center actively contributed by advising and assisting the client to strengthen their approach to managing their assets, as well as integrating this improved approach into their operational and technical systems and their IT architecture. This was achieved through a process of specific guideline applications based on PAS 55.
The coordination and alignment of information came as a result of technical and financial reporting requirements concerning tangible assets, and an end-to-end management policy helping the client to redesign their business processes for asset management investment, maintenance and disposal and establishing a technical asset pricing model. The KPMG Global Asset Management Competence Center also provided a full assessment of the client’s management of their assets, which the company could then use to more accurately construct their asset management strategy.
Finally, maintenance- and investment improvement have been made based upon quantitative analyses and supported by an enterprise asset management software application.
The project’s outcomes indicate that it was a success. All the challenges faced at the start of the project were overcome, helping the client to become increasingly focused on, and familiar with asset management. The internal changes will support the client to become more cost efficient with its assets.
Cash savings on maintenance and replacement investments were achieved while being compliant with the requirements of asset quality and risks.
The improvement of communication between the asset management department and the IT department permitted the technical databases of the assets to become more complete, as well as more reliable, thereby increasing internal efficiency once again. Port tariffs are now based upon a variable model according to economic, commercial and operational parameters.
The successful completion of the project was a result of both the KPMG Global Asset Management Competence Center's advice to relevant departments and the client’s willingness to adopt new asset management strategies and reforms.