1. Introduction
2. Literature review
2.1 Private Finance Initiative of the ports
2.2 Rehabilitate project for PFI
3. Analysis of the Profitability of PFI Ports companies
3.1 Overview of the PFI ports in Korea
Table 1
3.2 Analysis of the companies’ profitability of the Korean PFI ports
- ROA : It is a ratio of net income to total assets, widely used for evaluating management activities or establishing management strategies through analysis of differences between a company’s plans and performance.
- ROE : It is a ratio of net income to stockholders’ equity.
- Net income to sales : It is an indicator that shows the ratio of net income to sales.
- Operating income to sales : It is an indicator to determine the performance of a company’s main business activities, only pure operating profit directly related to manufacturing and sales activities is compared to sales. This is useful for measuring business efficiency.
Table 2
Ratios | four-years average(%) |
---|---|
ROA | -2.30 |
ROE | -36.09 |
Net income to sales | -34.30 |
Operating income to sales | 5.20 |
Table 3
Ranking | Company | Location | ROA (%) |
---|---|---|---|
1 |
DONGWONG LOEX INCHEON |
Incheon north port (2-1) | 9.22 |
2 | PNC | Busan new port (1) | 8.97 |
3 |
TAEYOUNG GRAIN TERMINAL |
Pyeongtae k·Dangjin grain pier | 2.61 |
Table 4
Ranking | Company | Location | ROE (%) |
---|---|---|---|
1 |
DONGWONG LOEX INCHEON |
Incheon north port (2-1) | 12.39 |
2 | PNC | Busan new port (1) | 9.62 |
3 | TAEYOUNG GRAIN TERMINAL | Pyeongtaek· Dangjin grain pier | 5.89 |
Table 5
Ranking | Company | Location | Net income to sales (%) |
---|---|---|---|
1 |
DONGWONG LOEX INCHEON |
Incheon north port (2-1) | 42.56 |
2 | PNC | Busan new port (1) | 26.48 |
3 | TAEYOUNG GRAIN TERMINAL | Pyeongtaek ·Dangjin grain pier | 11.47 |
Table 6
Ranking | Company | Location | Operating income to sales (%) |
---|---|---|---|
1 |
DONGWONG LOEX INCHEON |
Incheon north port (2-1) | 58.79 |
2 |
MOKPO NEWPORT |
Mokpo new outport (1-1) | 35.77 |
3 | PNC | Busan new port (1) | 33.32 |
4. The application plans of the old ports R-project
4.1 Overview of aging ports in Korea
Table 7
4.2 Types of PFI
- BTO(Build-Transfer-Operate) : At the same time as the infrastructure is completed (new, expansion, improvement), the ownership of the facility belongs to the central or local government, and the concessionaire is granted the right to manage and operate the facility for a concession period.
- BOT(Build-Operate-Transfer) : The ownership of the facility belongs to the concessionaire during a specified period after completion of the infrastructure (new, expansion, improvement), and when the period expires, the ownership transfers to the central or local government.
- BOO(Build-Own-Operate) : The ownership of the facility belongs to the concessionaire upon the completion of the infrastructure(new, expansion, improvement)
- BTL(Build-Transfer-Lease) : At the same time as the infrastructure is completed (new, expansion, improvement), the ownership of the facility belongs to the central or local government, and the concessionaire is granted the right to manage and operate the facility, but the facility is leased to the central or local government for the period of contract.
- BLT(Build-Lease-Transfer) : Infrastructure is completed (new, expansion, improvement) by the concessionaire and they lease the facility to others for a certain period, and transfer the facility to the central or local government after the ends of the lease period.
- Mixed model : A model of building and operating one infrastructure by mixing BTO and BTL.
- Combined model : A model of using two or more of the BTO or other models(previous types of models) in multiple ways by physically dividing the infrastructure.
- RTO(Rehabilitate-Transfer-Operate) : After renovating, repairing, and expanding the existing facility owned by the central or local government, the ownership of the facility rehabilitated belongs to the central or local government, and the concessionaire is granted to the right to manage and operate the facility for a certain period time.
- ROT(Rehabilitate-Operate-Transfer) : The ownership of the facility is recognized for a certain period of time to the concessionaire who has renovated, repaired and expanded the existing facility owned by the central or local government, and when the period expires, the ownership of the facility rehabilitated belongs to the central or local government.
- ROO(Rehabilitate-Own-Operate) : The ownership of the facility is recognized to the concessionaire who has renovated, repaired, and expanded the existing facility.