Profile: Brookfield Infrastructure Partners LP (BIP.N)
18 Dec 2013
Brookfield Infrastructure Partners L.P. (the partnership), incorporated on May 29, 2007, owns and operates utility businesses, transport and energy businesses and timber assets in North and South America, Australasia, and Europe. Its operating platforms include utilities, transport and energy and timber. Utilities include regulated or contractual businesses that earn a return on their rate base. Transport and Energy provides transportation, storage and handling services for energy, freight, bulk commodities and passengers. Timber provides wood products. The partnership is a subsidiary of Brookfield Asset Management Inc. (Brookfield). The Company’s subsidiaries include Brookfield Infrastructure L.P., Great Lakes Power L.P., DBCT Management Pty Ltd, Empresa de Energia de Boyaca S.A., Tasmania Gas Networks, International Energy Group, Warwick Gas Storage L.P., Longview Timber Holdings Corp and Island Timberlands Limited Partnership. In April 2013, John Laing Infrastructure Fund Limited acquired a 30% stake in Peterborough City Hospital, an owner and operator of hospitals, from the partnership.
The Company’s utilities platform is comprised of regulated businesses, which earn a return on their asset base, as well as businesses with long-term contracts designed to generate a return on capital over the life of the contract. In all cases, it owns and operates assets that earn a return on a regulated or notionally stipulated asset base, which the Company refers to as rate base. Its utilities platform is comprised of regulated terminal operations, electricity transmission and regulated distribution. Its regulated terminal operation is comprised of a port facility that exports metallurgical and thermal coal mined in the central Bowen Basin region of Queensland, Australia. Its regulated terminal operation generates revenues under long-term take-or-pay contracts that are made up of two components: a capacity charge that is allocated to users based on the percentage of total capacity for which they contract and a fixed and variable handling charge associated with operating and maintaining the terminal. The Bowen Basin has coal deposits. The Company has long-term take-or-pay contracts with mining companies that operate in the Bowen Basin. Its coal terminal has a capacity of 85 metric tons per annum.
The Company’s electricity transmission operations are comprised of approximately 9,900 kilometers of transmission lines in North and South America. Its North American electricity transmission system consists of approximately 560 kilometers of 44 kilovolt (kV) to 230 kV transmission lines in Ontario, a 39 kilometer, 330 megawatt (MW) HVDC submarine cable in New York, and 600 kilometers of 345 kV transmission lines under development in Texas. Its South American electricity transmission system includes 100% of Chile’s 500 kV transmission lines, the highest voltage lines in the country, approximately 51% of the 220 kV lines, 86% of the 154 kV lines and 11% of the 66 kV and 110 kV lines in Chile. As at December 31, 2012, the Company had acquired 100% of the right-of-way required for the three transmission line segments.
The Company’s regulated distribution operations have approximately 2.5 million electricity and natural gas connections in the United Kingdom, New Zealand and Colombia. In the United Kingdom, its regulated distribution operations is an independent natural gas and electricity connections provider, comprised of approximately 1.6 million connections, principally natural gas and electricity. In New Zealand, it has more than 426,000 connections across a service area of 39,000 square kilometer on the North Island of the country. In South America, its electricity distribution franchise area is in the Boyaca and Santander provinces in Colombia, a region that is approximately 150 kilometers north of Bogota.
Transport and Energy
The Company’s transport and energy platform is comprised of open access systems that provide transportation, storage and handling services for energy, freight, bulk commodities and passengers, for which the Company is paid an access fee. This operating platform is comprised of businesses with regulated tariff structures, such as its railroad and toll road operations, as well as unregulated businesses, such as its ports. The Company’s transport and energy platform is comprised of rail operations, port operations, toll road operations and energy transmission and distribution operations. Its railroad operations are comprised of a below rail access provider, which operates approximately 5,100 kilometers of track and related infrastructure in the southwest region of Western Australia (WA) under a long term lease with the government. Its Australian railroad’s revenue is derived from access charges paid by rail operators or by underlying customers.
The Company’s port operations are located primarily in the United Kingdom and Europe. Its United Kingdom port’s status as the statutory harbor authority (SHA) gives it the statutory right to charge vessel and cargo owners conservancy tariffs for use of the River Tees. Its European port operation is comprised of a portfolio of concessions in locations throughout Europe that handle heavy dry bulk, specialty dry bulk, liquid bulk, general cargo and containers. Its European port operation handles over 50 metric tons per annum of cargo. At its United Kingdom port, its revenue is primarily generated from port handling services for bulk and container volumes. Approximately 25% of its revenue is earned from conservancy tariffs. The Company has a freehold land base of approximately 2,065 acres that is located in close proximity to its port, which generates income from long-term property leases that account for 6% of its revenue. At its European operations, it has diversified operations with over 50 types of products handled at 23 terminals located throughout seven countries in Europe.
The Company’s energy transmission and distribution operations are comprised of natural gas transmission pipeline and storage systems in the United States and unregulated gas and liquid propane gas (LPG) distribution operations in Australia and the United Kingdom. Its toll road operations are comprised of a free flowing 33 kilometer toll road and tunnel that form part of a ring road in the transportation network of Santiago, Chile.
The Company’s timber platform consists of 343,000 net acres of freehold timberlands located in the coastal region of British Columbia, Canada and the Pacific Northwest region of the United States. Its timberlands are comprised of Douglas-fir, hemlock and cedar species. In addition, its land holdings include approximately 8,000 net acres of higher and better use (HBU) lands. As of December 31, 2012, the Company had 343,000 acres of timberlands, and 8,000 acres of HUB lands.
Brookfield Infrastructure Partners LP
73 Front Street
HAMILTON HM 12