Background

The overall aim of the Client’s project was to secure the Kvarken region’s cross-border transport route in the long run and to create a functional and environmentally friendly east-west infrastructure route. In the development phase of the project, PBI Research Institute was contracted for various pre-feasibility studies to support the Client in creating a solid business case for the overall investment. The cross-border transportation route’s goal was also to further strengthen the close collaboration between the regions in both Sweden and Finland. Therefore, capturing the systemic benefits of the investment was one of the central goals of the pre-feasibility studies.

Our role

Pre-feasibility phase support

  • Develop alternative, innovative governance and business models for building and operating system investment

  • Identify initial CAPEX estimates and develop rough capital expenditure plan for system investment

  • Preliminary cash flow analysis for the ferry investment

  • Identify financing channels and distribution

Feasibility phase support

  • Detailed cash flow analysis including growth scenarios for ferry investment

  • Assess national impact of constructing ferry in Finland

  • Support for Client’s discussion with potential financers

PBI deliverables:

  • Financial pre-feasibility summary report

  • Detailed financial modelling of ferry investment

  • Impact analysis report

Impact

  • Significantly more focus in project on financing aspects

  • Solid understanding of business case for ferry investment and its debt carrying capability

  • Input for discussions with both public and private financers

  • ​Delivery of the new ferry, Aurora Botnia, June 2021

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