Economic and Financial Feasibility

This chapter describes how, until approximately 25 years ago, decisions concerning new construction, extensions and improvements of ports were made without a methodical study of the economic and/or financial feasibility of the project because suitable methodology was not available at the time. Since the methodology became available it has been extensively used and thereby developed further. Although it does not give exact results, it is the only suitable tool for separating good projects from poor projects. The economic evaluation of projects aims at answering three questions: (1) Why do this at all? (2) Why do it now: and (3) Why do it this way? The paper describes how there are many similarities between economic analysis and financial analysis of projects. The main difference is that financial costs are used instead of economic costs, that is taxes, import duties and other levies are included in the costs. A number of years ago the return on net fixed assets was widely used. However, the results were difficult to evaluate, as the benchmarks were to a large extent arbitrary.

  • Availability:
  • Corporate Authors:

    Thomas Telford Limited

    London,   United Kingdom 
  • Authors:
    • Agerschou, Hans
  • Publication Date: 2004

Language

  • English

Media Info

  • Media Type: Print
  • Edition: Second
  • Features: Figures; References;
  • Pagination: pp 38-48
  • Monograph Title: Planning and Design of Ports and Marine Terminals

Subject/Index Terms

Filing Info

  • Accession Number: 01054181
  • Record Type: Publication
  • ISBN: 0727732242
  • Files: TRIS
  • Created Date: Jul 5 2007 3:44PM