Port Investment Strategies under Uncertainty: The Case of a Southeast Asian Multipurpose Port1
Port investment decisions are mainly related to productivity improvement strategies or capacity expansion leading to higher capacity utilization and financial performance. The authors propose an investment decision-making process for future port infrastructure investments taking into account various...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Elsevier
2014-12-01
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| Series: | Asian Journal of Shipping and Logistics |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2092521214000546 |
| _version_ | 1818520636890284032 |
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| author | Ioannis N. Lagoudis James B. Rice Jr Jason B. Salminen |
| author_facet | Ioannis N. Lagoudis James B. Rice Jr Jason B. Salminen |
| author_sort | Ioannis N. Lagoudis |
| collection | DOAJ |
| description | Port investment decisions are mainly related to productivity improvement strategies or capacity expansion leading to higher capacity utilization and financial performance. The authors propose an investment decision-making process for future port infrastructure investments taking into account various uncertainties, which can impact the return of the investment over the project's useful life.
The methodology has been applied on the expansion evaluation of warehousing facilities in a multipurpose port. For the evaluation of the alternatives, the expected net present value (ENPV) is based on earnings before interest, tax, depreciation and amortization (EBITDA). Results show that the investment strategy for a new 4-level warehouse with a flexible option was the optimal choice when compared with strategies of similar scale. However, depending on the emphasis placed on the various investment metrics the optimal investment strategy seems to be closer to a non-flexible 5-level warehouse. |
| first_indexed | 2024-12-11T01:40:07Z |
| format | Article |
| id | doaj.art-0d00c3402cf5486497a12489892a2af8 |
| institution | Directory Open Access Journal |
| issn | 2092-5212 |
| language | English |
| last_indexed | 2024-12-11T01:40:07Z |
| publishDate | 2014-12-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Asian Journal of Shipping and Logistics |
| spelling | doaj.art-0d00c3402cf5486497a12489892a2af82022-12-22T01:25:04ZengElsevierAsian Journal of Shipping and Logistics2092-52122014-12-0130329931910.1016/j.ajsl.2014.12.003Port Investment Strategies under Uncertainty: The Case of a Southeast Asian Multipurpose Port1Ioannis N. Lagoudis0James B. Rice Jr1Jason B. Salminen2Assistant Professor, MIT Global SCALE Network, Malaysia Institute for Supply Chain Innovation, MalaysiaDeputy Director, MIT – Center for Transportation and Logistics, USAMSc Graduate, MIT Supply Chain Management, USAPort investment decisions are mainly related to productivity improvement strategies or capacity expansion leading to higher capacity utilization and financial performance. The authors propose an investment decision-making process for future port infrastructure investments taking into account various uncertainties, which can impact the return of the investment over the project's useful life. The methodology has been applied on the expansion evaluation of warehousing facilities in a multipurpose port. For the evaluation of the alternatives, the expected net present value (ENPV) is based on earnings before interest, tax, depreciation and amortization (EBITDA). Results show that the investment strategy for a new 4-level warehouse with a flexible option was the optimal choice when compared with strategies of similar scale. However, depending on the emphasis placed on the various investment metrics the optimal investment strategy seems to be closer to a non-flexible 5-level warehouse.http://www.sciencedirect.com/science/article/pii/S2092521214000546PortInvestmentUncertaintyDecision-Making |
| spellingShingle | Ioannis N. Lagoudis James B. Rice Jr Jason B. Salminen Port Investment Strategies under Uncertainty: The Case of a Southeast Asian Multipurpose Port1 Asian Journal of Shipping and Logistics Port Investment Uncertainty Decision-Making |
| title | Port Investment Strategies under Uncertainty: The Case of a Southeast Asian Multipurpose Port1 |
| title_full | Port Investment Strategies under Uncertainty: The Case of a Southeast Asian Multipurpose Port1 |
| title_fullStr | Port Investment Strategies under Uncertainty: The Case of a Southeast Asian Multipurpose Port1 |
| title_full_unstemmed | Port Investment Strategies under Uncertainty: The Case of a Southeast Asian Multipurpose Port1 |
| title_short | Port Investment Strategies under Uncertainty: The Case of a Southeast Asian Multipurpose Port1 |
| title_sort | port investment strategies under uncertainty the case of a southeast asian multipurpose port1 |
| topic | Port Investment Uncertainty Decision-Making |
| url | http://www.sciencedirect.com/science/article/pii/S2092521214000546 |
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