the visible hand

it is the theory which decides what can be observed – einstein

Goldman Sachs looks to pitch port-rail investment

Posted by ecoshift on May 25, 2008

Here’s an interesting development. Anyone who has ever actually taken a look at the condition of the rail right-of-way through the Eel River canyon would expect the north coast rail system to transition to other less capital intensive uses as gracefully as possible. Yet, Goldman Sachs has decided to promote investment in a lost cause. Perhaps it will be found…

After all, who needs due diligence? If they play it like they did their MBS investments in 2002 they can just pump it up and then sell it short five years later.

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Goldman Sachs looks to pitch port-rail investment – Times-Standard Online
John Driscoll/The Times-Standard
Article Launched: 05/24/2008 01:27:11 AM PDT

The international financial firm Goldman Sachs and Co. wants to market the North Coast’s dilapidated railroad and underutilized port to investors interested in making them another gateway for California goods.

As other ports like Long Beach and Oakland near capacity, there will be a strong need to increase handling capability for Pacific Rim goods, Goldman Sachs Vice President for Public Sector and Infrastructure Banking Jeffrey Holt wrote in a May 9 letter to the Humboldt Bay Harbor, Recreation and Conservation District.

Humboldt Bay could be a natural gateway for exports of Central Valley produce and commodities, Holt wrote, and for extra container capacity. But without public funds to improve the infrastructure, private equity will be needed, he wrote.

Holt wrote that some $60 billion worth of investment capital in pension funds around the world is looking for long-term infrastructure as investments. Goldman Sachs wants to drum up that money for the district through an auction or other process.

”Making the improvements to the port and rail assets will potentially bring thousands of jobs to the region, including jobs in warehousing, distribution centers and light manufacturing,” Holt wrote.

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