Inland Waterway Harbor Investment Project Analsis

This Study aims to a real Case Study of AB inland waterway port in GUANGXIprovince,based on on-site deep investigations and scientific analysis.The methods I used areclassic economy models,like porter five force model, discounted free cash flow model.Inland waterway transport (IWT) is the “greenest” mode of transport with competitiveadvantages including less capital costs, land requirements, and energy consumption.Notwithstanding China’s rapid economic development and in the pursuit of sustainableeconomy nowadays, the market share of IWT in the Greater Pearl River Delta (GPRD) regionhas however been declining despite the prosperous economic development.As manufacturingactivities are relocating further inland, the inland waterway freight transport will becomemore competitive than trucking in many western PRD cities. It is a considered opportunity toinvest such a important port,which would be helpful to achieve optimal competition, promotethe sustainable development of port logistics industry and benefit the regional economy。I chased the top-down method to focus on the project. The port economy is the importantmotivation of economic development in a district． Five force Model consolidate theinformation and reveal the earning prospect. On the other hand,results from DCF modelcomfirm the intrinsic value of this project.Regarding to the risk issues, we have proposedsome recommendations in this paper for consideration of the relevant parties in the region.At last,I draw the conclusion,the project could be accepted under the strictly risk controland it could overweight the required rate of shareholders.