TY - GEN
T1 - Feasibility study on the financial aspect of green ship recycling yard business model
AU - Sunaryo,
AU - Hanura, Ananda Rizkytama
AU - Hussein, Fariz
N1 - Funding Information:
Authors are thankful to the Directorate of Research and Community Engagement Universitas Indonesia for facilitating the research and to the Ministry of Research, Technology, and the Higher Education Republic of Indonesia contract No. NKB-1789/UN2.R3.1/HKP.05.00/2019 for providing research funds to conduct the study. Authors also appreciate the Maritime Task Force of Ministry of the Industry Republic of Indonesia for giving the needed source.
Publisher Copyright:
© 2020 Author(s).
Copyright:
Copyright 2020 Elsevier B.V., All rights reserved.
PY - 2020/5/6
Y1 - 2020/5/6
N2 - According to the Hong Kong Convention, the ship's life cycle is limited to 25 years old due to its deteriorating of its effectiveness and uneconomical to be operated, so it needs to be recycled. This opens up the market for a ship recycling industry in Indonesia. Two business models can be implemented to a green ship recycling industry, one is as a service provider model and the other is a "3-in-1"model. Before opening up a new green ship recycling business, a feasibility study needs to be conducted to assess which model of green ship recycling business will be more profitable. Several aspects need to be considered in a feasibility study. This paper will be focusing on the financial aspect of the feasibility study. The results of this feasibility study for the service provider model are Payback Period of 3.74 years, Average Rate of Return of 0.36, Net Present Value of IDR228.322.021.477,00 Profitability Index of 3.82, and Internal Rate of Return of 17%. For the 3-in-1 model with a Payback Period of 11.7 years, yields Average of Return of 0.28, Net Present Value of IDR124.876.569.841,00 Profitability Index of 2.25, and Internal Rate of Return 12%. From those results, it can be concluded that the service provider model is more profitable.
AB - According to the Hong Kong Convention, the ship's life cycle is limited to 25 years old due to its deteriorating of its effectiveness and uneconomical to be operated, so it needs to be recycled. This opens up the market for a ship recycling industry in Indonesia. Two business models can be implemented to a green ship recycling industry, one is as a service provider model and the other is a "3-in-1"model. Before opening up a new green ship recycling business, a feasibility study needs to be conducted to assess which model of green ship recycling business will be more profitable. Several aspects need to be considered in a feasibility study. This paper will be focusing on the financial aspect of the feasibility study. The results of this feasibility study for the service provider model are Payback Period of 3.74 years, Average Rate of Return of 0.36, Net Present Value of IDR228.322.021.477,00 Profitability Index of 3.82, and Internal Rate of Return of 17%. For the 3-in-1 model with a Payback Period of 11.7 years, yields Average of Return of 0.28, Net Present Value of IDR124.876.569.841,00 Profitability Index of 2.25, and Internal Rate of Return 12%. From those results, it can be concluded that the service provider model is more profitable.
KW - 3-in-1
KW - Financial aspects
KW - Service provider
KW - Ship recycling
UR - http://www.scopus.com/inward/record.url?scp=85096367407&partnerID=8YFLogxK
U2 - 10.1063/5.0001072
DO - 10.1063/5.0001072
M3 - Conference contribution
AN - SCOPUS:85096367407
T3 - AIP Conference Proceedings
BT - Recent Progress on
A2 - Nahry, null
A2 - Marthanty, Dwinanti Rika
PB - American Institute of Physics Inc.
T2 - 16th International Conference on Quality in Research, QiR 2019 - 2019 International Symposium on Advances in Mechanical Engineering, ISAME 2019
Y2 - 22 July 2019 through 24 July 2019
ER -