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Investment Estimation of Logistics Park and Lean Logistics
2023-02-28

The comprehensive indicators of the logistics park basically involve three categories, including financial indicators, basic operational indicators, and operational status indicators, of which financial indicators focus on the feasibility analysis and evaluation of the project’s profit and loss, and are the most commonly used indicators. The analysis of the financial indicators of the logistics park will involve investment estimation and economic benefit analysis. The investment estimation analysis is the core content of the paper.


The investment estimation of the park project mainly includes six aspects, including engineering cost, land acquisition cost, other costs of engineering construction, project reserve cost, liquid capital, and interest during construction.


Engineering cost involves the construction and installation costs of buildings, roads, pipe networks, public greening works, and other supporting facilities of the logistics park project, as well as the purchase and installation costs of equipment and tools. The cost of construction and installation works is generally estimated by referring to the cost level of the project location and according to the unit index, and the cost of purchasing and installing equipment and tools is estimated by referring to the configuration quantity and price of similar projects.


Land acquisition cost is generally negotiated between the owner and the government, and implemented in accordance with the relevant national and local regulations and the actual discount rate.


Other costs of engineering construction mainly involve construction management fees, consulting fees for preliminary work of construction projects, survey and design fees, construction drawing review fees, project bidding management fees, and agency service fees, of which the construction management fee mainly includes the management fee of the construction unit and the project supervision fee, and the consulting fee for the preliminary work of the construction project mainly includes consulting, environmental assessment, safety assessment, occupational hazards, energy assessment, and cost consulting fee.


Based on the sum of the project cost and other construction costs, project reserve cost will be accrued at a certain rate.

Liquid capital is generally estimated according to the expanded index method, based on the sum of engineering cost, other engineering costs, and reserved expenses, and accrued at a certain rate.


Interest during the construction period refers to the interest of bank loans and other loans in the project financing, which is generally estimated according to the loan interest rate of financial institutions for more than 5 years.


It is worth noting that during the process of investment estimation of logistics park projects, it is generally estimated according to the quotas and charging standards at the time of design, which can only reflect the cost level at the time of design. If the quotas, charging standards and prices change during the construction period, the investment estimate will be adjusted within the prescribed scope.


Fablog logistics consulting&planning, experts of logistics and supply chain