FEASIBILITY STUDY FOR THE CONTAINER YARD OPERATIONS

Abstract

This paper aims to investigate a feasibility study for the container yard operations locating near the Laem Chabang Port, Sriracha district, Chonburi. The study covered with market, technique, management, finance and economy issues. The sensitivity analysis is also conducted. Return and operating costs were tested the effect of changing Net Present Value (NPV) and Internal Rate of Return (IRR). These will make it possible to estimate whether the project can withstand changes in compensation and the costs in the future. From the result of the technical study, by the analytical hierarchy process (AHP), the location of Pintong industrial estate is suitable for the container yard foundation with the operating area of 14 rai (0.16 hectare). The location is next the main road, so it is convenient for transportation. Management study found that the start of operation needs 24 persons which divided into the executive and service departments. The feasibility financial study shows that NPV is 114,374,331 baht, IRR is 66.5 percent, Benefit-cost (B/C) ratio is 1.85, and Payback period is 2 years 4 months. The result of sensitivity analysis concluded that the change of NPV and IRR could be effected by the project returns and operating costs where other variables were constant. In case of high risk, the return decreased 15 percent and the operating costs increased 15 percent show that NPV is 75,038,183 baht, IRR is 51.87 percent. It is also found that the project will be infeasible if the return is fallen to 47 percent; in other words, this project is less risk.