It is the abbreviation of Transport Corridor Europe-Caucasus-Asia. This transport corridor project is an inter-state program that aims at improving international transport and political-economic progress in the European Union, the Black Sea, Caucasus, and Central Asia. Moreover, specifically, the program intends to strengthen the trade and transportation of Azerbaijan, Armenia, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan to integrate them with the international economy.
Published in Chapter:
Valuation of Logistics Hubs: A Case Study From Turkey
Musa Gün (Recep Tayyip Erdogan University, Turkey)
Copyright: © 2020
|Pages: 28
DOI: 10.4018/978-1-7998-1086-5.ch015
Abstract
Logistics structures playing significant roles in the economic development of countries are irreversible investments. The exact valuation of them could be difficult due to various uncertainties and problems. This chapter illustrates a methodological way to be able to make an investment decision about the creation of a logistics hub in Of-Iyidere region. Under given assumptions, the study findings indicate that (1) the investment has a positive net present value under three different cost of capital rates, which are 7.5%, 10%, and 15%; (2) the internal rate of return is 18.5%; (3) the payback period is 7 years 8 months; and (4) the discounted payback periods are calculated as 10 years 1 month, 11 years 3 months, and 14 years 11 months according to the aforementioned cost of capital rates. Moreover, the chapter discusses basic project valuation challenges and presents solutions to improve the practice of logistics hub appraisal. So, the paper exhibits an essential guidance and policy support tool to highlight the potential of logistics hub infrastructures in Turkey.