[KSCI] Korea Science Citation Index Service

http://dx.doi.org/10.5394/KINPR.2020.44.5.430

A Study on the Profitability of Private Finance Initiative Ports Companies and the Use of Old Ports Rehabilitate-Project

Yang, HuckJun (Busan Development Instituted)

Publication Information

Journal of Navigation and Port Research / v.44, no.5, 2020 , pp. 430-437 More about this Journal

Abstract

This paper analyzes the profitability of the Private Finance Initiative(PFI) ports and proposes the application plans of the R-project(Rehabilitate project) for old ports to attract and activate private investment in the port industry. The R-project of old ports can reduce the government's financial budget and provide improved facilities for users more quickly than the public sector comparator. Before suggesting the R-project for old ports, the profitability of the currently operating 11 companies of the PFI ports are analyzed using the four ratios of profitability, and the results show that all the companies indicate low profitability, except for the top three companies. To apply the R-project, the three types of R-project ports are categorized as maintaining the function of the port, changing the function of the port, and mixing the function of the port. Additionally, three obstacles and improvement measures are suggested; attracting private business, legal issues, and administrative procedures. This study is conducive to the policy making for the port renewal and the activating PFI for the port industry.

Keywords

old ports; R-project (Rehabilitation project); PFI (Private Finance Initiatives); profitability; financial ratios;

Citations & Related Records

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