Applying financial evaluation techniques to the maritime investment projects: The case study on port business

Ports are the transfer points of maritime transportation. Port industry has continuous changes in the aspects technology, legislations, forms of the ownership and acquisition. Port handling equipments, other port superstructure components, port infrastructure components are required to be kept updated by considering service quality and productivity. This requirements continuously canalizes the port sector to the investments which are very complex in financial aspects. Considering the numerous risky components port industry has, investment projects should be evaluated by using dynamic methods.From constructing a port as a completely new investment to renewing a little equipment inside, the financial analysis of the port has great importance. The aim of this proposal is to define the technics to be used in port project evaluation and assess the criterias. Besides that, the risk level of project and the effects of the changes in the project variables to the feasiility of the study are cleared in this study. Threshold values, sensitivity indicators and switching values of key variables are calculated as well.In spite of the affects of technology, world trade flow, financial and economic indicators, political environment to the port investment project decision, evaluation methods are also important in deciding to investment. Acoording to the findings, in todays economic conditions, projects should be evaluated by dynamic methods. Projects? risk assessment and sensitivity analysis of variables are required to be carried out.Keywords: Shipping, Port Investments, Finance, Financial Evaluation Methods