The full planning process will go through several stages as planning and construction progresses over the next several years provided the NTCF grant is realized. The Comprehensive Business Plan is part of the NTCF application process and is only one of those stages and is included in this segment of our proposal.
The NTCF grant is a key element of this project – the building of a large, modern port capable of efficiently accommodating increasingly large numbers of increasingly large ships. However, even larger financings will be required to complete increasingly complex studies and construction. These financings will be complete by the private sector. As part of the grant approval process, NTCF will seek assurance that the private sector is supportive of the Jervis Ports Inc.’s proposal.
So far we have identified several stages of development of the proposed business.
- The conceptual stage. In reality this is where we are at this time, as we prepare our Expression of Interest to the NTCF. We have applied what we believe to be sound logic to develop our proposal; we have done considerable research; and we have sought input from numerous government and private sector sources. We have made preliminary estimates of the various stages to complete the project. (Estimates to follow.)
- First revision. Following our Submission of Interest, our hope is that the NTCF will ask us to complete a Comprehensive Business Proposal. If that happens, we believe that our credibility will be advanced in the eyes of the potential transportation industry stakeholders. If that happens, we will seek additional input from key potential industry stakeholders, consulting organizations and government departments. We have already established good relationships with most of them. We believe that they will be increasingly forthcoming and provide quality data that will be used to expand and quantify our data. We will also document underlying assumptions. All of these things will be completed before any funding will be committed by NTCF.
- Additionally, and also prior to any NTCF funding, Jervis Ports Inc. will require additional funding for corporate purposes. We will seek that funding from the private sector. If we are awarded a grant we will need funding for the duration of the conduct of the Class D studies. Our current estimate is that that those funding will total $250,000. We anticipate that this funding will give additional comfort to the NTCF that the First Nations and industry stakeholders are supportive of Jervis Ports Inc.
- Submission of our Comprehensive Business Proposal will happen at this time
- Second revision. The release of the findings of the Class D studies will reveal the first independently and professionally determined cost estimates and other factors. The business plan will be updated accordingly.
- Decision time. At this time control of Jervis Ports Inc. will be controlled 50% by the founders, and we expect 25% by First Nations and 25% by industry stakeholders. Non-voting shares are also issued. The class D studies will have updated planning and construction cost estimates. The existing $300 million requirement could change. The primary funders are expected to be industry stakeholders and First Nations. If this funding is successful, the non-voting shares would be converted to voting shares and control would past from the founders. Industry knowledgeable management would take charge and take over the development of evolving business planning.
- Subsequent revisions would take place at the pleasure of management, but at least, most likely upon receipt of the Class C, B and A studies.
- As the construction phase approaches, may turn its attention to debt financing a portion of the construction costs and to the appropriateness of an initial public offering of shares. These options will involve a high level of sophisticated financial planning and require a business model that will ensure that the company has the capacity to service the debt and provide an adequate return to the shareholders.