ABSTRACT
Several terminals within international public ports have been financed or purchased by private organizations. Since the demand for ports is a derived demand, it is only logical to anticipate the equally rapid growth of ports. Financing may also include intangible assets and input such as human resource development, business relationships, and promotion/marketing, to name a few. Port authorities make investment decisions generally based on three key issues: funding opportunities available, return on investment, and ability to repay loan. Since the element of time is critical for any type of financial commitment, the delays involved in port and terminal funding may prove detrimental to the estimation of the investment time horizon and the level of risk exposure. Both overinvestment and underinvestment will lead to financial and commercial losses. Hence, risk analysis and thorough investment selection are required. A port’s ability to attract foreign direct investment will maximize its competing strategy.
