Bonded Logistics Center Investment Decision

In recent years, China has a good momentum in foreign trade. Import and export companies have a strong desire for free trading and tax rebating, which provide a prerequisite for the development of bonded logistics. For a company, making investment in the logistics center is a large project, which will cost a large amount of money. So, the company should make cautious decision. The thesis, take Jiangyin bonded logistics center as an example, makes a study in the aspect of the investment feasibility, investment scale and operation mode, which aims to provide theoretical support for the company to make a decision.This thesis can be divided into three parts. In the first part, whether or not to make an investment in Jiangyin bonded logistics center is analyzed. In this part, SWOT analysis is used to analyze the internal and external environment, mainly in the aspect of the positioning of the logistics center, bonded logistics requirement, the positioning of the Jiangyin Port and its throughput. As a result, making an investment in Jiangyin bonded logistics center has advantages and disadvantages, opportunities and threats. However, its advantages outweigh its disadvantages, so this investment project is feasible.The second part of this thesis is its core part and it is also its innovation part. In this part, investment scale and operation mode is analyzed. In this thesis, game theory is introduced in deciding its scale, making fully consideration of competition and market. This investment belongs to full information dynamic game, so the Stackelberg model is applicable. Based on the Stackelberg model, two scales is decided, that is large scale and small scale. But which scale is adopted in the end will depend on the market forecasting. So the Bayes theory is used to further explain the relationship between the scale and market requirement. If the market requirement is high, then the large scale will be adopted and vise versa.The game theory is also adopted in choosing operation mode. The limitless repeated game has proved that the cooperation among companies is a better operation mode, which can not only avoid risks, but also increase profits. The third part of this thesis, from the perspective of financing, evaluation for this investment project is made in terms of net present value, profitability index, internal rate of return and payback period.