Ottawa Consulting Firm Expands Niche
through Asian Development Bank
When it comes to obtaining business through the international financial institutions (IFIs), CPCS
Transcom Ltd. could be considered something of an expert: working with IFIs has been the
company's core business since incorporation in 1996. Now a world leader in the field of
infrastructure restructuring and privatization, with current contracts in two dozen countries, the
Ottawa-based consulting firm nevertheless continues to expand into new business areas. Its
recent, and first, $1.1-million contract in Papua New Guinea through the Asian Development
Bank (ADB) serves as a compelling " how to" for breaking into the challenging but lucrative IFI
market.
Created from a merger between transportation commercialization specialist Hickling Transcom and
railway engineering company CPCS International, CPCS Transcom had a competitive edge from the
beginning. At the time of incorporation, the new consulting firm took over from its predecessors about
$6 million in IFI-funded contracts in almost a dozen countries, and has never looked back. " We
inherited our reputation," says company president Peter Kieran. " We didn't start out small."
The firm - small in size, with 25 full-time employees and another 25 or so sprinkled around the world at
various times - specializes in helping governments to commercialize and privatize their transportation
organizations, particularly roads, railways and ports. It offers services in everything from business
planning and technical assessments to management training and engineering and construction services.
Kieran doesn't downplay the hard work it takes to get work through the IFIs, but stresses that the
benefits outweigh the challenges. Over the past five years, his own company has had contracts in 48
countries, with IFI-funded work accounting for approximately 60-70% of company business. " If you
talk to enough people who know the IFI ground rules, develop a plan, and follow through, you'll get
in," says Kieran.
The biggest challenge, according to Kieran, is the importance that the IFIs, particularly the World
Bank, place on corporate experience. " The experience of the company is the biggest single factor of the
prequalification stage. And if you don't prequalify you can't bid. So it's difficult for a company to enter
new business areas, because you don't have the previous experience."
Having inherited its reputation and experience, this sounds like a problem that CPCS Transcom itself
wouldn't face. But the company doesn't rest on its laurels. " We're at a stage where we're still quite
aggressive in expanding the company into new business areas. There are only so many ports and
railways in the world. We have to keep expanding our niche, so we're entering areas where we don't
have any corporate experience."
Perseverence and aggressiveness are at the top of Kieran's list of tips for succeeding. In the case of the
Papua New Guinea contract, he explains that the company was unsuccessful in two proposals it had
previously submitted for projects in that country, including an ADB proposal. " So this time we were
faced with being very aggressive and going after the project, or giving up. But if you give up, it means
someone else comes in, and they get stronger and harder to beat next time around."
The company did not give up; in fact, it outbid six other companies - from the United Kingdom,
Sweden, Germany, the Netherlands, Singapore and Australia - to win the million-dollar contract, which
is for reorganizing the navigational systems that support the country's extensive network of coastal
shipping.
While Kieran won't give away all his trade secrets, he does have good general advice to share. To gain
the corporate experience necessary for a particular IFI project, he recommends that companies look
for small jobs in their target market; hire or partner with individuals who already have the required
experience; and/or form alliances, mergers or partnerships with other companies that have the
expertise. " We are always looking for partnering opportunities; in fact, a recent merger with Upham
International has expanded our road expertise."
Kieran also recommends going after CIDA Industrial Cooperation Program (CIDA-INC) projects, as
his own company has done. " Once you have a CIDA project under your belt, you have the necessary
country qualifications, which will strengthen your chances of getting short-listed for an IFI project. You
have to be prepared to put up serious money yourself, but CIDA INC is very responsive and helpful."
In its winning proposal for ADB, CPCS Transcom drew on its experience from a CIDA institutional
strengthening project in the maritime sector in Vietnam, as well as its related port experience.
For the ADB's short-list stage, Kieran notes that Canadians have an edge. " ADB spreads out the short
list geographically, so there's often a slot for a Canadian firm on the list. They also restrict the number
of times you're allowed to be short-listed each year, so that gives new companies a chance."
Once at the proposal stage, however, winning an ADB project can be more difficult than through other
IFIs. " The demand on the experience of the individuals is higher. The ADB specifies the positions it
wants filled; it's an evaluation position by position. So you need to make sure your proposal includes
people who are extremely well qualified."
For the ADB project, to start in December, CPCS Transcom hired " four of the very best maritime
experts," all of whom had previous experience in Papua New Guinea and with the ADB. " This was a
Class A competition, and nothing else would win."
Success, in short, says Kieran, " requires a very good analysis of your own strengths and weaknesses -
your own capabilities and those of your competitors - as well as a clear understanding of why you want
to be in the business."
For Kieran and his staff, motivation comes from a word you don't often hear in business: altruism. " We
don't like to admit it, but truthfully it's part of it. In this business there's a genuine desire to help
developing countries to develop."
It seems fitting that such motivation should reap its rewards, as it obviously does for CPCS Transcom.
For more information, contact:
Export Financing Division, DFAIT
Tel: (613) 995-7251
E-mail: ifinet@international.gc.ca
or
Peter Kieran, President
CPCS Transcom Ltd.
Tel: (613) 237-2500
Fax: (613) 237-4494
Website: www.cpcstrans.com
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