IDEAS home Printed from https://ideas.repec.org/a/pal/marecl/v8y2006i2p140-168.html
   My bibliography  Save this article

Risk Management in Large Physical Infrastructure Investments: The Context of Seaport Infrastructure Development and Investment

Author

Listed:
  • Mun Wai Ho

    () (Planning and Portfolio Management, Singapore Sports Council, National University of Singapore, 4 Architecture Drive, Singapore 117566.)

  • Kim Hin (David) Ho

    () (Department of Real Estate, School of Design and Environment, National University of Singapore, 4 Architecture Drive, Singapore 117566.)

Abstract

The growth of developing countries depends very much on having adequate physical infrastructure to support economic development. As a strategic response, many physical infrastructure investments like seaports are being privatised and highly purpose built. This paper investigates the merits of viable seaport infrastructure investment, typically ‘lumpy’ and requiring large capital expenditure and long payback period. A key feature of such an infrastructure investment is to structure a defensible risk management strategy to deal with uncertainties. This risk management strategy can provide responsive alternatives to new opportunities. Singapore's Jurong Port is the case study. The original risk management strategy is analysed in 1996, and deploys risk simulation for scenario planning in conjunction with constraint optimisation. This original risk management strategy finds that it is more defensible to configure Jurong Port, and a seaport in general, into the maritime industrial and logistics park (MILP) instead of the higher-margin and purpose-built container terminal strategy, which is inherently volatile (ie uncertain or risky). The planned scenarios and their projections, under the original risk management strategy are then compared with the consequential developments in reality. The results highlight that the sustained viability of Jurong Port in 2004 is attributed to that risk management strategy, originally developed in 1996. Maritime Economics & Logistics (2006) 8, 140–168. doi:10.1057/palgrave.mel.9100153

Suggested Citation

  • Mun Wai Ho & Kim Hin (David) Ho, 2006. "Risk Management in Large Physical Infrastructure Investments: The Context of Seaport Infrastructure Development and Investment," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 8(2), pages 140-168, June.
  • Handle: RePEc:pal:marecl:v:8:y:2006:i:2:p:140-168
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/mel/journal/v8/n2/pdf/9100153a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.palgrave-journals.com/mel/journal/v8/n2/full/9100153a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:gam:jsusta:v:10:y:2018:i:3:p:783-:d:135959 is not listed on IDEAS

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:marecl:v:8:y:2006:i:2:p:140-168. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.palgrave-journals.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.