Financial Analysis of Automated Container Terminal Capacity from the Perspective of Terminal Operating Company
This study examines the financially feasibility of the proper terminal capacity by each berth size of the automatic container terminal (ACT) from the perspective of Terminal Operating Company (TOC). ACT is a highly productive and eco-friendly port facility, but it requires a lot of capital investmen...
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| Format: | Article |
| Language: | English |
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MDPI AG
2020-11-01
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| Series: | Journal of Marine Science and Engineering |
| Subjects: | |
| Online Access: | https://www.mdpi.com/2077-1312/8/11/954 |
| _version_ | 1797547089715003392 |
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| author | Nam Kyu Park Yohan An |
| author_facet | Nam Kyu Park Yohan An |
| author_sort | Nam Kyu Park |
| collection | DOAJ |
| description | This study examines the financially feasibility of the proper terminal capacity by each berth size of the automatic container terminal (ACT) from the perspective of Terminal Operating Company (TOC). ACT is a highly productive and eco-friendly port facility, but it requires a lot of capital investment. Thus, the investment of ACT should consider the TOC’s operating profit preservation to determine the proper terminal capacity. In this study, we attempt to conduct financial analysis using the net present value method and estimate breakeven handling volume of five berth sizes (nine, five, four, three, and two berths). In particular, as the aim of this study is to propose a capacity model of ACT, the model must be able to adapt to a variety of situations reflecting the number of berths and financial discount rate. The case study focused on the new port of Busan, introducing ACT. As a result, the breakeven terminal capacity changes from 560,421 TEU of the 9-berth model to 633,102 TEU of the 2-berth model, applying a 4.5% standard discount ratio. In a sensitivity test considering the change in discount rate and the size of the berth at the same time, the net present value (NPV) has a positive value at the level of at least 550,000 TEU (nine berths and 3.5% discount rate) and up to 650,000 TEU (two berths and 5.5% discount rate). The method of optimizing financial efficiency by analyzing the appropriate loading capacity will be an important support tool in decision-making by providing the analysis results and reasonable information obtained during the analysis process to the TOC, the main stakeholder in the adoption of ACT. |
| first_indexed | 2024-03-10T14:38:17Z |
| format | Article |
| id | doaj.art-d3ae0a418d55403bac0338b2212f4d19 |
| institution | Directory Open Access Journal |
| issn | 2077-1312 |
| language | English |
| last_indexed | 2024-03-10T14:38:17Z |
| publishDate | 2020-11-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Journal of Marine Science and Engineering |
| spelling | doaj.art-d3ae0a418d55403bac0338b2212f4d192023-11-20T22:01:14ZengMDPI AGJournal of Marine Science and Engineering2077-13122020-11-0181195410.3390/jmse8110954Financial Analysis of Automated Container Terminal Capacity from the Perspective of Terminal Operating CompanyNam Kyu Park0Yohan An1Department of International Logistics, Tongmyong University, Busan 48520, KoreaDepartment of Finance & Accounting, Tongmyong University, Busan 48520, KoreaThis study examines the financially feasibility of the proper terminal capacity by each berth size of the automatic container terminal (ACT) from the perspective of Terminal Operating Company (TOC). ACT is a highly productive and eco-friendly port facility, but it requires a lot of capital investment. Thus, the investment of ACT should consider the TOC’s operating profit preservation to determine the proper terminal capacity. In this study, we attempt to conduct financial analysis using the net present value method and estimate breakeven handling volume of five berth sizes (nine, five, four, three, and two berths). In particular, as the aim of this study is to propose a capacity model of ACT, the model must be able to adapt to a variety of situations reflecting the number of berths and financial discount rate. The case study focused on the new port of Busan, introducing ACT. As a result, the breakeven terminal capacity changes from 560,421 TEU of the 9-berth model to 633,102 TEU of the 2-berth model, applying a 4.5% standard discount ratio. In a sensitivity test considering the change in discount rate and the size of the berth at the same time, the net present value (NPV) has a positive value at the level of at least 550,000 TEU (nine berths and 3.5% discount rate) and up to 650,000 TEU (two berths and 5.5% discount rate). The method of optimizing financial efficiency by analyzing the appropriate loading capacity will be an important support tool in decision-making by providing the analysis results and reasonable information obtained during the analysis process to the TOC, the main stakeholder in the adoption of ACT.https://www.mdpi.com/2077-1312/8/11/954automated container terminal capacityfinancial analysisTerminal Operating Company |
| spellingShingle | Nam Kyu Park Yohan An Financial Analysis of Automated Container Terminal Capacity from the Perspective of Terminal Operating Company Journal of Marine Science and Engineering automated container terminal capacity financial analysis Terminal Operating Company |
| title | Financial Analysis of Automated Container Terminal Capacity from the Perspective of Terminal Operating Company |
| title_full | Financial Analysis of Automated Container Terminal Capacity from the Perspective of Terminal Operating Company |
| title_fullStr | Financial Analysis of Automated Container Terminal Capacity from the Perspective of Terminal Operating Company |
| title_full_unstemmed | Financial Analysis of Automated Container Terminal Capacity from the Perspective of Terminal Operating Company |
| title_short | Financial Analysis of Automated Container Terminal Capacity from the Perspective of Terminal Operating Company |
| title_sort | financial analysis of automated container terminal capacity from the perspective of terminal operating company |
| topic | automated container terminal capacity financial analysis Terminal Operating Company |
| url | https://www.mdpi.com/2077-1312/8/11/954 |
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