The Study Of Investment Decisions For Rizhao Iron And Steel Logistics Park Project

In recent years, with the rising price of worldwide iron ore and other bulkmaterials, the cost of iron and steel enterprises rise. The costs of logistics of Iron andsteel account for20%-30%of the total cost. High distribution cost has become abarrier to technological innovation and industrial restructuring in iron and steelenterprises, which creates the conditions for the investment and construction of steellogistics park. A large iron and steel logistics park can provide professional logisticsservices for the iron and steel enterprises within its Service scope, which will helpreduce the logistics costs. The park can also bring significant social benefits for thelocal economy. Because of the high cost for investing a large-scale iron and steellogistics park, investment decision-making analysis is very important before theconstruction of the project. Set in the Iron and Steel Logistics Park of Rizhao，thisthesis estimates the scale of investment and the revenue and cost during operation ofthis project. Meanwhile, it evaluates the profitability and anti-risk capability of thisproject according to index of correlation in order to supply theoretical support toinvestment decision.The paper is divided into three parts. The first part focuses on the theoreticalbasis of the investment decisions for logistics park project, including the introductionof the concepts of logistics park projects and feature analysis. It also analyzes thecontent and features of the logistics park project investment decisions, and focuses onsummarizing some unique characteristics of the investment decisions and introducingsome Investment decision-making methods, which provides a theoretical basis for thefollowing analysis.The second part introduces the basic overview of the project first, including theconstruction plan, functional locating, the traffic advantages and economic advantagesof Rizhao Iron and Steel Logistics Park project. Marketing analysis and forecast forthe park is an innovative point of this paper. According to the calculated demand for steel of Shandong Province from year2000to2010, it constructs a time series model,and selects the appropriate forecasting methods to estimate the demand for steel, thengets the final result by weighting. Finally it analyses the model according tocompetitive conditions，selects six large steel logistics park in Shandong Province andthe surrounding area for analysis, calculates the proportion that Rizhao Iron and SteelLogistics Park could get, and then brings out the demand forecasting results of theshort-term and long-term.The third part is the innovation of the paper. Through quantitative research, itselects financial internal rate of return, NPV, payback period, the sensitivity analysisresults and profit and loss capacity analysis results as the indicators, then supply thefinancial evaluation and uncertainty analysis as well as national economic evaluationto the analysis of the investment decisions and provides the evidence to the investorwhich has realistic significance.