CASE STUDY
The Client:
A large port operator in the Southeast United States providing essential stevedoring and marine terminal operations for container shipping companies, the business serves as a critical node in global supply chains by loading and offloading containers onto cargo vessels, coordinating truck and rail transport, and managing short-term storage of containers at port facilities. Operating at one of America’s busiest ports handling massive cargo volumes connecting Asian manufacturing to U.S. consumers and businesses, the company delivers comprehensive services including lifting containers on and off customers’ vessels docked at berths, secure container storage, and yard management operations that keep international commerce flowing. With established relationships with major shipping alliances and decades of operational experience, the port operator had built irreplaceable infrastructure and expertise that positioned it as an indispensable partner to global shipping lines, but faced capacity constraints that threatened to limit growth and force cargo diversion to competing ports.
The Challenge:
The port was running out of physical space as container volumes grew and vessel sizes increased, creating an urgent need to purchase rubber-tired gantry cranes (RTGs) that would enable higher container stacking and dramatically increase yard density without expanding the physical footprint. The capital-intensive RTG investment—including both regular electrified RTGs and utility tractor rigs (UTRs)—would transform the port into a more technologically efficient terminal, materially increasing capacity and exponentially improving profitability while reducing the carbon footprint through electrification that eliminated diesel-powered equipment. However, the timing complicated financing as the company evaluated needs during the pandemic when supply chain disruptions, shipping volatility, and economic uncertainty made lenders cautious about port infrastructure investments. Adding another layer of complexity, companies were navigating the transition from FASB-13 to IFRS 16 accounting standards, fundamentally changing how equipment leases appeared on financial statements and forcing careful evaluation of both on-balance-sheet and off-balance-sheet financing structures to optimize financial statement presentation, covenant compliance, and tax treatment during the accounting transition period.
Solution:
First National Capital recognized that strategic port infrastructure investments require patient capital partners willing to work through complex timing, accounting transitions, and economic volatility rather than demanding immediate decisions or retreating during uncertain periods. FNC worked with the port operator for over three years, investing substantial time to understand the business, evaluate evolving equipment needs, assess various financing alternatives, and structure solutions aligned with the company’s operational and financial objectives. During the pandemic, when many lenders withdrew from infrastructure financing or imposed restrictive terms, First National remained engaged and actively explored financing options that would support the RTG investment when timing was right. Understanding the accounting complexity created by the FASB-13 to IFRS 16 transition, First National helped the company evaluate both on-balance-sheet and off-balance-sheet structures, providing expert guidance on how different lease accounting treatments would impact financial statement presentation, debt covenants with senior lenders, and tax optimization strategies. By serving as a complementary CapEx funding source rather than competing with or constraining the company’s senior lending relationships, FNC structured highly competitive, flexible equipment financing that enabled the port operator to deploy electrified RTGs and UTRs, transform terminal efficiency and capacity, position itself for exponential profitability improvement as container volumes recovered, and reduce environmental impact through clean electrified equipment—all while maintaining the financial flexibility and covenant compliance essential to managing a capital-intensive port operation through volatile shipping cycles.
It All Begins With A Conversation
We listen. We live out-of-the-box. We solve problems. And we get deals done. Let’s do this.
