Investment Evaluation of a Suburban Coastal Transport System.

Essay by serifhsUniversity, Master'sA+, March 2006

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This paper aims at determining the optimum viable solution of an investment on a

suburban coastal shipping system in the area of Athens. More specifically it refers to

the development of a sea transport system, alternative to the existing road one, that

would connect Piraeus with the southern suburban coastal area of Athens. The best

viable solution of such an undertaking is considered to be the one, which under the

existing constraints maximises the total profit that derives from this investment. The

variables used for the formation of the constraints are the number of vessels used, the

routing and the price of the services. The article after presenting the methodology of

the market analysis, focuses on the financing alternatives of the project and their

impact on its economic efficiency and concludes with the best viable scenarios and

optimum solution.

1. Introduction

The paper's main objective is to determine the optimum solution of an investment

undertaking that includes an alternative transportation system, that is a suburban

coastal transport system in the south region of Athens. Such a system is believed that

can offer a possible solution to the transport problems of congestion, which

characterise the existing overloaded road network of Athens.

Suburban coastal shipping has a special character. First there are not many examples

of cities that use an analogous transport system. Secondly, the main competitor of sea

transport is road transport or fixed track systems (train, tram). It should be mentioned

that the current transportation system despite its deficiencies in terms of time, cost as

well as externalities remains a strong travel alternative and consequently a constraint

for the development of the proposed seaborne transport. This is due to the several

advantages it offers to its users like door to door services, flexibility and speed.