The Case Of RunDong Port Petrochemical Logistic Project Financing

The past decade has witnessed the rapid progress in Chinese modern logistics due to the country's booming economy. The continual improvement of logistics pattern and development plan brings great opportunity to Chinese enterprises. However, quite a number of construction projects are baffled because of fund shortage.On the basis of conventional and modern financing theories, this paper, taking a port petrochemical logistic project as example, makes an elaborate analysis on the causes of fund shortage and pragmatic problems in financing. It considers a series of factors should be taken into consideration on project financing, including internal and external environment, the construction or development stage, the diversity of financing, and the claims from different stock-holders etc.A total of three steps are performed before the author gets the optimum plan. First, every possible financing method is listed. Second, feasible methods are selected in accordance with lender or investor's demands. Third, a comprehensive evaluation is carried out over the financing cost, risks, capital structure and stock ratio so as to facilitate the decision-making on financing package. The author finally draws the conclusion that the fund shortage, with certain regularity, could be solved through a common mode basically.