Economic Feasibility Study on the Construction of the Bubon Port Pier, West Aceh Regency

DOI

10.2991/978-94-6463-134-0_41How to use a DOI?

Keywords

Feasibility study; project; port; wharf; NPV; BCR; IRR

Abstract

The port of Kuala Bubon, as the maritime axis of the west-south part of Aceh, is one of the crossing ports to connect community activities in West Aceh Regency and its surroundings to Simeuleu Island. Every year, both the demand for goods and passenger departures are increasing every year. Currently, to facilitate logistics transportation and support crossing activities for passengers, goods or services between islands, it is planned to develop buildings and facilities at the Kuala Bubon Port. The purpose of this study is to determine the results of an economic feasibility study on the construction of a port pier so that later it can be seen the design drawings of the port pier and other appropriate facilities. This irrigati on development feasibility study uses the Net Present Value (NPV), Benefit Cost Ratio (BCR), Internal Rate of Return IRR, and Break Event Point (BEP) methods. The data analysis in this study includes analysis of RAB (Expense Budget Plan) and analysis of cash flow (cash flow). This calculation includes the cost of capital which consists of direct costs and indirect costs. For cash flow analysis, NPV analysis is needed. If the NPV is positive, then the investment is feasible, if the NPVn is negative, then the investment is not feasible. Furthermore, the BCR analysis, if the BCR value 1, the IRR value the interest rate, BEP obtained when NPV = 0, then the project is said to be feasible to build. The results of the NPV value obtained were Rp. 391,744,370,503 or NPV > 0, BCR 37.65, IRR value 5.25% > rate of return (3.50%), and BEP occurred in the 2nd year on the 67th day which shows the payback period obtained is less than the economic life of the project, which is 30 years. Based on the results of the four cash flow analysis methods, it shows that the port development project is said to be economically feasible because it has met the feasibility requirements and the project can be implemented.

Copyright

© 2023 The Author(s)

Open Access

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TY  - CONF
AU  - Zakia
AU  - Maylis Safriani
AU  - Inseun Yuri Salena
PY  - 2023
DA  - 2023/04/19
TI  - Economic Feasibility Study on the Construction of the Bubon Port Pier, West Aceh Regency
BT  - Proceedings of the 6th Mechanical Engineering, Science and Technology International conference (MEST 2022)
PB  - Atlantis Press
SP  - 427
EP  - 436
SN  - 2352-5401
UR  - https://doi.org/10.2991/978-94-6463-134-0_41
DO  - 10.2991/978-94-6463-134-0_41
ID  - 2023
ER  -