Integrated Approach to Marine Terminal Development

In recent years, the North American port industry has faced a confluence of counteracting forces that has resulted in scarce financial resources for terminal development at a time when they are needed most. This paper presents an approach to evaluating marine terminal expansion programs that integrates cargo demand, capacity, infrastructure, equipment, capital expenditures, operating expenses and financial returns. This method allows for the rational selection of a preferred alternative for terminal development based on meeting desired performance and financial metrics. One of the benefits of such a framework is its inherent flexibility to adapt implementation plans over time as events (both expected and unexpected) unfold. After an initial overview of the approach, this paper uses a case study to illustrate its application.