A COMPUTER ANALYSIS OF THE ECONOMIC VIABILITY OF NEO-BULK SHIP DESIGNS

The term "neo-bulk" as it pertains to service, cargoes, and vessels is defined. A methodology for identifying the market for neo-bulk services is presented. An example market penetration analysis for a dedicated base-leg/ballast-leg neo-bulk service between British Columbia and the U.S. East Coast is given. Fixed and variable operating costs pertaining to neo-bulk class vessels are examined. Financial figures of merit for making optimal vessel selections are discussed leading to the choice of net present value as the most appropriate to the study. Current foreign and U.S. shipping investment climates are described and the effect of a firm's overall tax position on the investment decision is explained. A computerized method for examining route, vessel, and financial plan alternatives is developed and a worked example based on two existing and one proposed neo-bulk lumber carriers is presented.

• Corporate Authors:

  Massachusetts Institute of Technology

  Department of Ocean Engineering, 77 Massachusetts Avenue
  Cambridge, MA  United States  02139
• Authors:
  • Longhorn, R A
• Publication Date: 1976-9

Subject/Index Terms

• TRT Terms: Bulk carriers; Economic analysis; Investments; Planning; Shipping; Vehicle design
• Old TRIS Terms: Investment planning; Neobulk shipping
• Subject Areas: Design; Economics; Marine Transportation; Planning and Forecasting;

Filing Info

• Accession Number: 00142340
• Record Type: Publication
• Source Agency: Massachusetts Institute of Technology
• Report/Paper Numbers: MS Thesis
• Files: TRIS
• Created Date: Nov 23 1976 12:00AM