Economic analysis of port development project (case study: Belawan Port Medan)

Abstract

Belawan Port is one of the most important ports on the island of Sumatra. Port conditions are currently only able to load ships with a maximum draft of 8.9 m for normal water level conditions. This condition greatly limits the productivity especially for large ships. Therefore, the access channel deepening project is proposed to improved loading and unloading activities. This study was conducted to assess the benefits received from the project. The study was conducted with the parameters EIRR (Economic Internal Rate of Return), NPV (Net Present Value), and PI (Provitability Index). Furthermore, it also conducted a study to make the Port of Belawan port become sustainable. After analysis, the value of EIRR is 23.53% and NPV is 622,586,691 USD, and PI is 3.99. These results showed that the project has the proper parameters even when the sensitivity analysis I done with the benefit reduce to 70% and cost at fixed. But to get a sustainable port predicate still needed some adjustments, especially in terms of preserving the natural environment in which the parameter is still below the standard. Necessary measures such as the provision of a special budget for green port adjustment programs and policies and the provision of facilities to support the program.