Financial Studies of The Development Project of Belawan Access Channel at PT. Pelindo I (Persero)

DOI

10.2991/ebic-17.2018.11How to use a DOI?

Keywords

Ports of Belawan; BICT; Investment Criteria; Sensitivity Analysis; Financials

Abstract

Geographical condition of Indonesia that is dominated by sea led Indonesia to desperate need of the sea transportation management to meet its operational needs. PT. Pelindo I is a company that has the authority to manage the port in North Sumatra and its surrounding areas. Belawan's current access channel depth is between -7 s / d -9 mLWS. Ships that can directly enter the port area is a vessel with a draft of (hull) by 8 meters, while the larger vessels have to wait for high tide. Meanwhile, the ASEAN Economic Community policy and has been implemented since December 2015. Thus the deepening of the access channel to accommodate larger ships in order to expedite the process of marine transport is necessary. The purpose of this study was to assess the financial feasibility of the port plot development investments and facilities in the Port of Belawan and BICT. A financial review conducted by the parameter IRR and PI. Economic benefit analysis was also conducted to analyze the differences in the conditions 'project' and without the project. Having obtained the value of benefits and costs of economic and financial investment, a sensitivity test is carried out to test the sensitivity of investment to the uncertainty. The results of the analysis of the economic benefits of providing value EIRRs of 23.04% and PI worth of 3.83 with a discount factor of 12%. The results of the financial analysis of investment with the level of discount factor of 15% was obtained, namely 31.01% IRR and PI of 2.75, which means the investment is feasible.

Copyright

© 2018, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Listiani Nurul Huda
PY  - 2018/01
DA  - 2018/01
TI  - Financial Studies of The Development Project of Belawan Access Channel at PT. Pelindo I (Persero)
BT  - Proceedings of the 1st Economics and Business International Conference 2017 (EBIC 2017)
PB  - Atlantis Press
SP  - 59
EP  - 63
SN  - 2352-5428
UR  - https://doi.org/10.2991/ebic-17.2018.11
DO  - 10.2991/ebic-17.2018.11
ID  - Huda2018/01
ER  -