Synergies Economic Consulting was engaged by Glencore to construct some indicative Maximum Allowable Revenue (MAR) scenarios for the Port of Newcastle’s channel assets. The purpose of the analysis was to provide an indication of the likely annual revenue that a regulator would allow under a standard building blocks methodology. As the value of the channel assets is a key driver of the revenue allowance, Glencore has commissioned a high level Depreciated Optimised Replacement Cost (DORC) valuation, which has been used as a key input in our analysis. We assisted in the management of the asset valuation.
