Where the smart money is spent

The growing role of technology and the increasing need to build and then operate ports/terminals responsibly and sustainably, particularly when it comes to safety and the environment, are having a significant impact on projects.Specifically, the role of consulting engineers and advisers on such developments is changing too, and this trend will continue. 
 
Overall, there is a need for more specialists and less demand for generalists, such as civil engineers, port architects and general planners/ designers. This is because issues surrounding automation, safety, security and the  environment are fundamental in any port project these days. This applies as much to refurbishment and modernisation programmes in existing ports/terminals as it does to the construction of entirely new cargo complexes. 
Study any Expressions of Interest or Request for Proposals (RfP) document these days – particularly if issued by agencies, such as the World Bank, Inter-American Development Bank, African Development Bank and Asian development Bank – and it contains a multitude of disciplines, experiences and skills needed to qualify for the project. 
 
An RfP recently seen by Bulk Materials International, for instance, listed the need for a financial/business analyst, master mariner, expert in public-private partnerships, and environmental and digital specialists to be a part of the consultancy team. A failure to comply would result in disqualification from the process.
Outside help
For all but the largest engineering consultants, the need to use experienced specialists often means looking outside of their own companies for such personnel. It might mean forming joint ventures or setting up consortia. It certainlycomplicates planning, scheduling and fee structures for the lead consultant, and, for any project manager, it adds time and potentially risks to the process, as coordinating tasks and directing activities can be more difficult.
The increasing complexity of jobs and the more onerous demands placed on consultants by clients, especially fiscal entities (banks, insurance companies, pension funds and private equity groups), is one reason why the past fewyears have seen considerable merger and acquisition activity take place in the consulting engineering sector. 
Recently, WSP signalled its intent to acquire Morristown (New Jersey, US)-based Louis Berger, a deal that it hopes can be concluded by the end of 2018. Louis Berger employs over 6,000 engineers, economists, scientists, managers and planners, and specialises in offering integrated solutions for what it refers to as “complex challenges faced by infrastructure and development groups”. 
 
“I am very pleased about the prospect of joining WSP, as our values and strategies are aligned, and our operations are complementary,” said Jim Stamatis, president and CEO of Louis Berger. “WSP and Louis Berger are known to each other as we have pursued and won many projects together. As a result, we feel very comfortable in the strategic and cultural fit as we join together.” 
 
Alexandre L’Heureux, president and CEO of WSP, expressed similar views. “We are pleased by the opportunity to have Louis Berger join WSP. The company is recognised for its expertise in sectors and services that WSP has targeted for growth. This acquisition will also enable us to increase our presence in geographies we have also previously targeted for growth, such as continental Europe.” 
He added: “Lastly, it will increase our exposure to the US federal government sector, since Louis Berger has developed expertise and built experience in governmental contracts. We will now focus on integrating US operations and other regions that have proven to be drivers of growth, while pursuing the international restructuring Louis Berger had started.”
Louis Berger itself has been a part of the consolidation trend in the industry, having earlier this year acquired the remaining minority shares of BergerABAM that it did not own. Louis Berger had worked with BergerABAM for morethan 30 years. BergerABAM’s consulting activities focused on ports, waterfrontsand marine structures, highways, bridges and US Federal-controlled facilities. 
For WSP, which is one of the biggest consulting engineers engaged in the maritime transport and infrastructure sectors, the latest planned transaction is one of several it has concluded in recent years.
Last year, the Montreal, Canada, headquartered group purchased Chile’s Poch group and, in addition to expanding its presence in Chile, gained new offices and clients in Peru, Colombia and Mexico. The acquisition has strengthened  WSP’s core engineering and project/construction management competencies, while giving the company an enhanced presence in the environmental services sector. In addition, WSP has benefitted from having an expanded customer base in the industrial, transport, environmental and energy sectors of Latin America.
Other deals completed within the past couple of years have included: