Investment Risk Management Research On Yantai Port Liquid Chemical Terminal Construction Project

After reform and opening-up, with rapid development of Chinese economy, China has become one of the important exporters in the word. After the global economic crisis in 2008 and 2009, Chinese economy has stable income and durative growth. The requirement of mine, iron ore, and crude oil for sea transport have increased. The growth of material requirement leads to increase of our port’s cargo throughput. As a result, Chinese port has huge investment value and potential. Since Yantai Port Group establishment, the annual throughput of port has increased by almost 6 times. The total assets of the port have exceeded RMB 20 billion. By the end of 2012, the port cargo throughput has arrived to 200 million tons, an increase of 11.3%. The throughput growth of Yantai port is higher than average increase of country’s port by 3.5%. With the rapid economical development, Yantai port insists on environmental, friend and innovation. Now Yantai port owns 5 state-level and 16 provincial-level service brands, which has "national 5A Logistics Enterprise" Title. In recent years, with the rising of market demand and deepening reform of the system for national port, government and public are more interested in port investment project. According to the "Eleventh Five-Year" plan, Yantai port will further expand on construction projects. As a result, this requires the investment process should be systematic, standardized and personalized so as to identify, analyze, assess, prevent and transfer the investment risks, which plays an important role for the success of construction project investment.At present, although the world have a wide research and study on project risk management, and provide a lot of available methods, literatures and data on it, most of which is focused on the quantitative analysis of the project, lacked of binding analysis with objective and subjective, qualitative and quantitative. This paper is base on the above backgrounds, taking Yantai West Port Liquid Chemical Terminal project as the study case to discuss how to commence project investment risk management. Integrated using the knowledge and methods of the subject of Risk Management, Port Economics, Introduction of Modern Project Management and technology & economics, establishing a more practical port construction project investment risk evaluation system.This article is based on the empirical analysis, identifying the external and internal risk factors for port project investment, using the environmental analysis and sensitivity analysis to conduct risk factors within qualitative and quantitative analysis. Furthermore, proposing effective control, avoidance and transfer measures to avoid the risk factors, and finally elaborate the necessity and feasibility of Yantai West Port Liquid Chemical Terminal construction development from the view of investment risk management. This study shape a set of investment risk management solutions for Yantai West Port Liquid Chemical Terminal project, hoping provide the project risk investment reference for the same type or similar type of port construction.