BUSINESS STRATEGIC IN GENERAL CARGO VESSEL INVESTMENT, FINANCING AND PRICING DECISION FOR TIME CHARTER BASIS (CASE STUDY: PT. JASA INTERNASIONAL MARITIM, JAKARTA)

• Main Author: ODANG RIZKI (NIM: 29108310), MOHAMAD
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/18938
• Institution: Institut Teknologi Bandung

Shipping industry has an important role on the economy of a Country, that is because ocean freight is a kind of transport that can be accelerating the distribution channels trough the sea. Ocean freight, until now is relatively the cheapest mode of freight transport. Until present, the market share of ocean freight transportation in Indonesia, largely controlled by foreign companies. Government as one of the stake holders of the shipping industry in Indonesia has an interest to protect the industry. One of the regulations that have a significant impact is the application of the principle cabottage around Indonesia maritime waters, it causes changes in the existing market share between national companies and foreign companies. <br /> <br /> <br /> <br /> <br /> This study analyzes the feasibility of purchasing an investment that will operate the vessel in Indonesian waters. Target emerging markets due to market share has been abandoned by the companies that serve them, thus it would be an opportunity to be captured. Such investments are faced with a purchase option that will be done. Of the three types of general cargo ships that exist, an option that can produce the most benefit will be choose for implementing the investment Feasibility analysis is an approach to forecast the condition of an investment in the future. Internal rate of return and net present value through discounted cash flow can be used as a reference to determine whether it’s worth for the investment. Sensitivity analysis was also conducted to expand the description of the investment model that has been projected. Variables that have a significance influence to the model used as a reference for developing scenarios of the existing investment model. It is intended to identify the possibilities and risks that could arise in the implementation of the investment, so investors could prepare themselves to make their investment. From the investment financial projections, the value of time charter equivalent used as a reference for production costs of shipping time charter before fixed costs and variable costs. It will be a consideration in determining the selling price of the time charter product. <br /> <br /> <br /> <br /> <br /> Value of funding needed to make an investment purchase of the vessel amounted to Rp. 38,706,000,000.00, to make the purchase of two ships, namely Thor Hawk and Thor Swan with a total capacity of 5528 DWT vessels. Funding structure is composed of 70% and 30% equity loan, the loan funds needed is Rp. 27,094,200,000.00. Investment is expected to generate IRR of 40.38%. The minimum prices of products for time charter basis is USD 2.916.25 / day, with the pessimistic assumption that the product will be sold at USD 2.925 / day, then the IRR is equal to 37.77%.