Business Plan For Dredging Business
Business Plan For Dredging Business
Business Plan For Dredging Business
EXECUTIVE SUMMARY
1.1
1.2
1.3
1.5
1.8
1.6
( N000 )
106000
96200
92200
1.11 REMARKS:
The project has been carefully analyzed by team of experts and is found
technically, feasible, commercially viable and financially profitable. The
liquidity is very good as clearly seen in the projected cash flow. The
promoters will be able to services and make repayment of the start-up
capital within the six month of the project.
The project is therefore recommended for the needed financial assistance.
BODY REPORT
2.1
INTRODUCTION
Dredging is simply digging of mud, sand, gravel, pebbles, rocks and other
deposit from the bottom of the creek, lagoon sand waterways using a vessel
equipped for such purpose called a DREDGER, such dug up materials
depending on the type could be used for reclamation of swampy terrain,
building and construction works.
Sharps sand and gravel can be mine using a dredger to reclaim vast
expanse of swampy land and stock piled for sales. Sand dredging is vital for
human habit and survival, industrial and social development, and for
meeting the consumption need of our rapidly growing population.
2.2
_
_
OBJECTIVES
The objective of this report includes but not limited to the following:
Background information of the company, its operations, directors and staff.
A brief overview of the Nigerian economy as it affect dredging and sand
Stock pilling
Determination of the technical feasibility, economic and financial
profitability of engaging in this dredging and land filling contract.
Obtain a term loan facility of N4 million for execution of the business.
2.3
THE COMPANY
This report was commissioned by HOTSPUR INTEGRATED SERVICES, a private
limited liability company, incorporated within the provision of CAMA 1990.
The company was incorporated in the year 2011.
Some of the objective clause amongst others for which the company was
established as spelt out in the memorandum and article of association
include the following;
_
To carry on the business of dredging
_
To engage in sand stock piling for commercial purposes.
_
To carry on the business of maritime services.
Some incorporation the company has been involved in its line of business as
spelt out in the memorandum and article of association which include sand
dredging and reclamation of land in different parts of the country. The
companys personnel are presently carrying out dredging activities at Port
Harcourt and Warri Delta state.
2.4
TECHNICAL ANALYSIS
This project is concern with sharp sand mining, for construction in Etchie.
Sand shall be dredged from the river and stockpiled at the company bund
wall of the waterfront of the proposed project site using a Chinese
HYDRAULIC DREDGER.
A dredger is simply a barge or other vessel equipped for digging sand and
other materials from the bottom of waterways. There are generally two types
of dredger
_
The intermittent
_
The continuous
The former alternatively digs and lift the load while the latter digs
continuously, raising and transporting the materials at the same time.
The hydraulic dredger belongs to the continuous class. It cuts and sucks up
the materials from the bottom of the river by means of a ladder mounted
cutter head and suction pipe connected to a powerful suction pump that
transport it through a floating pipeline to shore, where land pipes finally
transport the materials to the dumpsite or stockpiling areas.
2.5
SITE STATUS
The need for proper hydrological survey sand search report for this project
cannot be over-emphasized. This is because figures obtained from guess
work or unreliable sources rather than proven scientific investigations will
lead to losses of the investors. To avoid this pitfall, the services of value
investigation, sand search experts were contacted to undertake the search.
Result of the sand search conducted at the proposed river reveals that the
quantity of sharp sand, available at the project site is more than adequate
for successful completion of the project and the quality is also certified good.
Thus, it makes business sense to venture into this project.
EXECUTION COST
3.1
EXECUTION COST
Execution of the sand dredging and stockpiling of 300,000 m3 for
commercial purpose will require investment in the followings:
- Advance deposit payment for the hire Dredger
- Payment for pay loader
- Royalties for the host community
- Working capital
The total sum required (START-UP CAPITAL) to meet the above obligations
using Chinese spec; 8 by 8 for the project is estimated at N4 Million.
The total cost of execution is N194 Million
3.2
FINANCING PLAN
( N000 )
Promoters contribution
Investor/Equity partner
400
4,000
REPAYMENT PLAN
Amount of the start-up capital
( N000 )
4,000
200,000
14,600
3.4
REVENUES
Revenues for payments of the accrued interest and liquidation of the start-up
capital is expected from the turnover received from the sum of N300 million.
3.5
300000
Cost of execution
194000
Gross profit
106000
( N000 )
14600
91400
( N000 )
Periods
0 (month)
12 (months)
INFLOWS
Start-up capital
4000
Net profit
91400
OUTFLOWS
Investment Cost
4000
Investment payment
Net cash flow
Corporation Tax payable @30%
3.6
4000
87400
26220
61180
SUMMARY
From the projected profit & loss accounts and the cash flow statement, the
project is considered financially profitable and economically viable. The
financial profitability is confirmed by the positive Net cash flow at the end of
the 12 months period after servicing and repayment of the start-up capital.
The project is therefore considered viable and recommended for financial
assistance
CONTACTS
FOR CONCTACTS AND INVESTMENT ON THE PROJECT AS PARTNERS, PLEASE
CONTACT THE PRINCIPAL PARTNER AS
NAME: AMOKO ALEXANDER
ADDRESS: 11 ADENIYI STREET, LEO AKURE ONDO STATE.
PHONE NO: +2348136284518