Investment project leasing reefer container as a new service

VIETNAM MARITIME UNIVERSITY INTERNATIONAL SCHOOL OF EDUCATION INVESTMENT PROJECT LEASING REEFER CONTAINER AS A NEW SERVICE COURSE: SEMINAR II INSTRUCTOR: MSc BUI THI THUY LINH GROUP NUMBER: NGUYỄN THỊ QUỲNH CHI 76182 NGUYỄN THỊ KIM HOÀN 65905 BÙI THỊ THU LOAN 78715 BÙI ĐỨC QUANG 63693 NGUYỄN QUỐC TIẾN 76240 Haiphong, June 2021 TABLE OF CONTENTS EXECUTIVE SUMMARY CHAPTER COMPANY OVERVIEW 1.1 The relation to Gemadept Corporation 1.2 Brief introduction 1.3 Statement of objectives .7 1.4 Statement of mission CHAPTER MARKET RESEARCH 2.1 Industry analysis 2.2 Target market 11 2.3 Competitors .17 2.3.1 Direct competitors 17 2.3.2 Indirect competitors 17 2.4 SWOT analysis 17 CHAPTER BUSINESS MODEL 19 3.1 Introducing the new refrigerated container rental business model 19 3.1.1 Advantage .19 3.1.2 Challenge .20 3.2 Business model goals 20 3.3 Analyze the basic elements in the new refrigerated container service business model 21 3.3.1 Key Partners 21 3.3.2 Key Activities 21 3.3.3 Key Resources 22 3.3.4 Customer Relationship 22 2.3.5 Value Proposition 23 3.3.6 Channel 23 3.3.7 Customer segment 24 Page 3.3.8 Cost Structure 24 2.3.9 Revenue Stream 25 PART PROJECT PLANNING .26 4.1 Project life cycle 26 4.1.1 Reefer container 26 4.1.2 Types of reefer container .26 4.1.3 Technical Design 26 4.1.4 Price Strategy 27 4.1.5 Promotion Strategy .28 4.1.6 Human Resource 28 4.1.7 Process 29 4.2 Financial appraisal 30 4.2.1 Formulation of a financial project: 30 4.2.2 Financial appraisal 34 4.3 Risk assessment 35 REFERENCE .37 Page EXECUTIVE SUMMARY CJ Gemadept Shipping Holdings Company Limited Gemadept Shipping generally known as Gemadept Shipping (GSC), a subsidiary of Gemadept Group, is one of the top three Vietnam container shipping firms on both local and international routes We are proud to be the first company in Vietnam to build a container shipping service with a strong fleet of ships that operates on the following routes: North - Central - South, Ho Chi Minh - Can Tho, and connecting Vietnam's ports with Singapore, Malaysia, Thailand, Hong Kong, Kaohsiung, Cambodia, and other countries GSC is always the first option and a dependable partner for many local and foreign enterprises operating on the territory of Vietnam, thanks to many years of expertise and a team of highly trained management experts in the shipping sector We constantly understand: in the trend of worldwide integration, prestige, safety, and time precision are always valued GSC constantly goes above and beyond to satisfy its clients' demands Not content with that, we continually enhance service quality, constantly improve & grow vigorously to give our clients with superior services, diversified, reasonable pricing, and quick processes neat, prestige on time, worthy the confidence that customers have in GSC - a trusted partner During the Covid-19 pandemic, Gemadept grew more dedicated to establishing a widely available supply of containers that might help Vietnam's economy become healthier and more sustainable while also aiding our business The uneven rate of empty containers had a direct influence on Gemadept's bottom line since our revenue stayed constant, but our net income fell substantially due to the growth of leasing container prices The major factor generating this result is the reliance on third-party container providers, particularly reefer containers Gemadept runs around 60.000 ordinary containers but no reefer containers Furthermore, we want to operate in our new business category of leasing reefer containers in response to market demand for rising preferences for import and export reefer procedures and products This project will be managed by CJ Gemadept Shipping Holdings Company Limited under the auspices of Gemadept Corporation We want to maximize the value of our own varied firm, which has numerous companies working in many sections of our country's supply chain This initiative is seen as a way for Gemadept to increase its competitiveness in the Vietnam logistics sector, where it competes with many other MNEs On the other hand, it aids in Page the stabilization of local demand, the reduction of the interdependence of the empty container balance on foreign suppliers, and the reduction of Vietnam's logistics expenses Until recently, the strategy was primarily focused on Vietnam's north, where it accounts for approximately one-third (1/3) of the country's logistical capacity.Googlept has made significant investments in port, shipping, and logistics infrastructure and services over the last decade, yielding some impressive results.We operate the Nam Hai terminal, also known as the Nam Hai Dinh Vu terminal, which is one of the largest ports in the Hai Phong port system and the Northern area Then, by developing Nam Hai Dinh Vu terminal phrases and 3, in collaboration with Nam Hai ICD and Gemadept Hai Duong ICD, as well as other partners, we would be able to deliver a better service at a lower cost The company is not a newcomer in this field when it comes to upgrading assets to meet the requirements of leasing reefer containers; we have experience operating the same business, general units.Most of our business processes have been aligned with general container leases, and we have years of actual experience.As a result, Gemadept will find it easy to make the initial investment for this new business category.Under the umbrella of Gemandept, there is Pacific Marine Equipment & Services Co, Ltd (PME) Over the past 20 years, with a highly-skilled team of reefer technicians and qualified engineers, PME has not only provided full PTI, repair, guarantee services for shipping lines & reefer producers, but also has successfully diversified services successfully, becoming the official distributor for many top reefer container brands such as: Thermo King, Carrier Transicold, Daikin, Starcoo, etc With support from the in-house subsidiary, we believe that we can meet intensive costs when buying new reefer units and deliver our best operating services to our customers Furthermore, with the growth of Gemadept subsidiaries in Haiphong city and nearby provinces in recent years, we can commit to providing our customers with the most competitive prices among a number of competitors Page CHAPTER COMPANY OVERVIEW 1.1 The relation to Gemadept Corporation Gemadept Corporation (Gemadept) is a Joint stock company with registered capital of 2,969,249,570,000VND Currently, Gemadept is one of the leading enterprises in its core businesses including Port operation and Logistics in Vietnam With 1,493 employees, it is an enterprise of large-scale and modern Port and Logistics network presented at arterial locations in Vietnam and other regional countries With over 50 subsidiaries and affiliates, Gemadept has been ranked among Top 50 Best Vietnamese Listed Companies by Forbes Since 2017, Gemadept has cooperated with CJ Corporation (CJ), one of Korea's leaders in Logistics service and solution providers In recent years, CJ Corporation has much influence on joint venture companies and tries to overtake the control of Gemadept Even though the company holds 50% voting rights, representing the majority of stakeholders’ interest, CJ is always taking action to slow down or even reject the ideas given by Gemadept’s board of directors Thus, to eliminate the impact of CJ, Gemadept managers decide to pass this idea to Gemadept Shipping to operate and control 1.2 Brief introduction  Name: Gemadept Shipping Limited Company or GMD Shipping  Company number: 0016077615  Incorporation date: July 2017 (almost years ago)  Legal form: Limited liability company with one member  Jurisdiction: Viet Nam  Registered Address: 06 Le Thanh Tong, Ben Nghe Ward, District 1, Ho Chi Minh City  Directors / Officers: Tran Vinh Nguyen Bao, representative  Personnel: 89 employees  Initial investment: 63,300,000,000 VND  Main businesses: Page  Port Operations: Gemet Corporation's primary business is port operations After 20 years of inception and expansion, Gemadept currently owns and runs a huge port system from North to South, in major cities and significant economic zones  Ocean Shipping: Gemadept Shipping, a subsidiary of Gemadept Corporation, is a prominent liner service provider linking Vietnamese ports with Singapore, Malaysia, Hong Kong, the Philippines, Thailand, Cambodia, and other destinations Domestic transportation services in the North-Central-South axis, as well as in the Mekong Delta area, are among Germany's strong points  Industry Codes  5224: Cargo handling (Viet Nam Standard Industrial Classification (VSIC) 2007)  4669: Wholesale of waste and scrap and other products n.e.c (Viet Nam Standard Industrial Classification (VSIC) 2007)  5012: Sea and coastal freight water transport (Viet Nam Standard Industrial Classification (VSIC) 2007)  4933: Freight transport by road (Viet Nam Standard Industrial Classification (VSIC) 2007)  5022: Inland freight water transport (Viet Nam Standard Industrial Classification (VSIC) 2007)  5222: Service activities incidental to water transportation (Viet Nam Standard Industrial Classification (VSIC) 2007)  5229: Other transportation support activities (Viet Nam Standard Industrial Classification (VSIC) 2007)  7730: Renting and leasing of other machinery, equipment and tangible goods (Viet Nam Standard Industrial Classification (VSIC) 2007)  7020: Management consultancy activities (Viet Nam Standard Industrial Classification (VSIC) 2007)  7490: Other professional, scientific and technical activities n.e.c (Viet Nam Standard Industrial Classification (VSIC) 2007)  5224: Cargo handling (UN ISIC Rev 4)  4669: Wholesale of waste and scrap and other products n.e.c (UN ISIC Rev 4) Page  5012: Sea and coastal freight water transport (UN ISIC Rev 4)  493: Transport via pipeline (UN ISIC Rev 4)  5022: Inland freight water transport (UN ISIC Rev 4)  5222: Service activities incidental to water transportation (UN ISIC Rev 4)  5229: Other transportation support activities (UN ISIC Rev 4)  7730: Renting and leasing of other machinery, equipment and tangible goods (UN ISIC Rev 4)  7020: Management consultancy activities (UN ISIC Rev 4)  7490: Other professional, scientific and technical activities n.e.c (UN ISIC Rev 4) 1.3 Statement of objectives GSC is always the first option and a trusted partner of many domestic and foreign businesses operating in the globe and on Vietnamese territory, thanks to many years of expertise and a team of highly experienced management people in the shipping sector GSC constantly goes above and beyond to satisfy the needs of its clients Not content with that, we continue to enhance service quality, continually improve and develop in order to provide clients with exceptional and diversified services, competitive pricing, and quick procedures, on time, succinct, and respectable 1.4 Statement of mission “To promote the economic growth and create added values for the country, the corporation and partners through comprehensive service chain and outstanding solution”  Recognize and meet the requirements of consumers to the greatest extent possible  Creating a welcoming work environment by the use of dynamic and competent human resources  Towards community sharing and sustainable growth Page CHAPTER MARKET RESEARCH 2.1 Industry analysis Identify the trend of the industry: Commencing at 587.014,2 thousand in 2010, the number of the volumes of goods transported by road was tripled in 2019 Inland waterway and Seaway became increasingly popular at the same time Table 1:Development index Development index (Thousand Tons) Years Road Inland waterway Seaway 2010 587.014,2 144.227,0 61.593,2 2011 654.127,1 160.164,5 63.904,5 2012 717.905,7 174.385,4 61.694,2 2013 763.790,0 181.212,7 58.900,0 2014 821.700,0 190.600,0 58.900,0 2015 877.628,4 201.530,7 60.800,0 2016 969.721,0 215.768,2 64.474,4 Page 2017 1.074.450,9 232.813,8 70.019,2 2018 1.207.682,8 251.904,6 73.562,2 2019 1.340.527,9 266.011,2 77.902,4 G.Shipping Ltc., offers a container leasing service, but it supplies general types only The EU-Vietnam Free Trade Agreement (EVFTA) negotiating rounds were formally reported to be completed on December 1st 2015, and the entire text of the agreement was published after year EVFTA was split into two agreements in terms of trade and investment, and the agreements were completed on June 30, 2019 EVFTA was approved by the Vietnamese National Assembly on June 8, 2020, after being confirmed by the European Parliament on February 12, 2020 This Agreement enters into force on August 2020 upon ratification The Trans-Pacific Partnership (TPP) is a Free Trade Agreement (FTA) between the United States, Canada, Mexico, Peru, Chile, New Zealand, Australia, Japan, Singapore, Brunei, Malaysia, and Vietnam The TPP was formally signed on February 4, 2016, and is set to enter into force in 2018 The CPTPP was formally signed in March 2018 by 11 nations (excluding the United States).This agreement was ratified by seven countries, including Vietnam, and it went into effect on December 30, 2018 and entered into force in Vietnam on January 14, 2019 Vietnam's trade has seen a dramatic increase in export flow as a result of the successful signing and implementation of EV-FTA and TPP-FTA, and our country has gained a trade surplus in recent years.First of all, the strong market opening commitment in the EVFTA Agreement promotes Vietnam - EU trade relations, helping to further expand the market for Vietnamese exports With the commitment to eliminate import taxes up to nearly 100% of the tariff and the trade value that the two sides have agreed, the opportunity to increase exports of Vietnam's advantageous products such as textiles, footwear, agricultural products, etc., seafood (including rice, sugar, honey, vegetables), furniture, etc., is very significant According to a study by the Ministry of Planning and Investment, the EVFTA Agreement will help Vietnam's export turnover to the EU increase by about 20% by 2020 to 42.7% in 2025 and 44.37% in 2030 compared to no agreement On the macro side, the EVFTA contributed to an increase in Vietnam's GDP Page PART PROJECT PLANNING 4.1 Project life cycle 4.1.1 Reefer container Vietnam is a leading producer and exporter of agricultural products in the world in terms of output, and also a dynamic consumer market with more than 100 million people Therefore, the demand for preserving products while transporting in Vietnam is increasing rapidly in recent years It can be seen that it is necessary for Gemadept to take this chance and improve their business by adding reefer containers as a new service to satisfy customers' needs Furthermore, this expansion in business activities could help Gemadept attract more clients and build another customer base just for this service 4.1.2 Types of reefer container Based on the market research result, we can see that the preference of 42R1, 42R7 surpassed other choices with 25% and 18% respectively Following is the 22R1 type with 16% So the company will invest in these types for the new service Our company focuses on the types to satisfy customer’s needs as well as diversify the options 4.1.3 Technical Design Page 26 Figure 2:Container 42R1  42R1  Length: 12192 millimeter (40 foot)  Height: 2591 millimeter (8 foot inch)  Width: 2438 millimeter (8 foot)  42R7  Length: 12192 millimeter (40 foot)  Height: 2591 millimeter (8 foot inch)  Width: 2438 millimeter (8 foot)  22R1  Length: 6058 millimeter (20 foot)  Height: 2591 millimeter (8 foot inch)  Width: 2438 millimeter (8 foot) Page 27 Figure 3: Container 22R1 4.1.4 Price Strategy Gemadept always focuses on making products with international quality, always aiming to satisfy customers, satisfying and responsible customers by diversifying products and services, ensuring product safety and hygiene with competitive prices According to the survey, apparently the price range from 151.000 to 350.000 is the most reasonable price for both the customers and our company Depending on the distance of each route, our company will have a price classification for customers The shorter route will have cheaper prices and the longer route will have a higher price Another thing to note down is fuel price There is a fluctuation in this price so consequently, our price can be adjusted slightly To compete, our company will sell wholesale prices to longtime customers, who have worked with us more than times We decided the price range for each type in the Northern region is :  22R1 - 151.000 – 250.000 VND/ day /Shipment  42R1/42R7 - 251.000 – 350.000 VND/day/ Shipment 4.1.5 Promotion Strategy  Advertising: With the establishment of a new company, the cost of advertising will also be properly spent The best approach for advertising a company's brand is Facebook advertising As we all know, Facebook is a social network with the Page 28 most users in the world, with the reason that the interoperability between businesses and consumers will be rapidly, strongly accessible, and the company's brand will be known faster, widely distributed across the country , and the brand will be developed in a sustainable way In addition, Facebook adverts will make it possible for the company to control its funds in order to exceed the budget specified Therefore, we will focus mostly on Facebook pages by hiring people who are in charge of creating content and images for daily posts In addition, our staff will also be in charge of consulting and replying to customers  Sales Promotion: With the customer promotion, we will bring the leaflets to the customer who comes for booking services to introduce new service The customers can check the information and contact for further details For the first month of operating, we will have a discount event to attract customers  Indirect promotion: With a large number of corporate partners, GMD could have them act as supporters These organizations can be different promoting branches, helping GMD spread out information about new services to different types of customers in this industry Moreover, it also diversifies the type of customers for GMD 4.1.6 Human Resource General Director: The General Director is in charge of all of the company's business activities, as well as its people and collaborative efforts The General Director will create and implement strategies to boost the new reefer service's growth and profitability They will be responsible for investment options, company plans, product development plans, and brand growth plans, among other things The Chief Marketing Officer is in charge of the company's whole marketing strategy Create a marketing strategy that is appropriate for this new reefer container service A marketing director's primary responsibility is to keep up with the latest news and market trends in order to manage the company's marketing efforts Second, brainstorm some suggestions for a marketing strategy that can be adjusted to the company's goals Finally, he will be in charge of campaign development and innovation to assist the company grow Chief Production Officer: The Chief Production Officer will be in charge of overseeing the workload, quality, and progress of the work in accordance with the Page 29 company's stated plan When the task manager arrives, the production process, as well as the process of product quality management, are deployed It will also be the person responsible for managing the entire machinery, equipment, supplies, finished products, warehousing, and goods from the factory, as well as the urge, inspect, and control the staff of the production workshop, carry out production according to the set process, ensure the right quantity, and timely progress as required We have seventeen more employees in this position Chief Financial Officer: The CFO will be in charge of areas such as research, analysis, and financial plan construction; effectively exploiting and using capital sources; alerting firms to dangers through financial analysis; and creating realistic future forecasts 4.1.7 Process Purchasing:  We choose types of containers 22R1, 42R1 and 42R7 to invest in  We decided to buy container from CIMC (China International Marine Containers (Group) Co., Ltd ) Table 5:Price buy container Name Amount Price/unit Total 22R1 42R1 42R7 16 20 20 85 mil VND 115 mil VND 115 mil VND 1,36 bil VND 2,3 bil VND 2,3 bil VND Total investment including the transportation fee of these equipment : 15,46 bil VND Recruiting: The company will set out a recruitment plan to enhance the human resource for this new section  Drivers: ~ 15 people/ seasonal hiring with a salary of about mil VND/ one shipment from the place of discharge to the place of destination  Workers : who will be in charge of unloading and loading, cleaning containers, about 20 people more with the salary of mil VND each month  Staff in Reefer section, who are in charge of operating this section only : 15 people witht the salary range from 5- mil VND/ month Page 30 After recruiting all the personnel needed, then the company moves on to the training phrase for these people to improve their skill This phrase also requires investment money as it can be about 700 mil VND in total Carrying out: Start the promotion as planned Build a promotion combo by adding a few services in a pack to offer a lower price for customers Trials of new containers to check to avoid flaws If any, we need to contact the manufacturer right away After everything is ready to be operated, the company needs an opening day to promote the new service so everyone can find this event online 4.2 Financial appraisal 4.2.1 Formulation of a financial project: Page 31 Quantity Price per unit Total Reefer container 42R1 50 85,000,000 ₫ 4,250,000,0 Reefer containe 20R1 30 55,000,000 ₫ 1,650,000,0 Reefer containe 42R7 20 80,000,000 ₫ 1,600,000,0 Repair & Mainteennance equipment packages 23,000,000 ₫ 69,000,00 Puchase of assets 7,569,000,0 Puchase of machinery Secondhand motorbike 9,000,000 ₫ 18,000,00 Computer 14,800,00 7,400,000 ₫ Printer 3,200,000 ₫ 3,200,000 Telephone 250,000 ₫ 250,000 Fan 280,000 ₫ 280,000 Page 32 Secondhand Car 180,000,000 ₫ 180,000,00 216,530,00 Establishing costs Management system update 18,000,00 Website update 1,500,000 Training program 15,000,00 Container register fee Reefer container 42ft 70 1,275,000 ₫ 89,250,00 Reefer containe 20ft 30 850,000 ₫ 25,500,00 365,780,00 Other costs 350,000,00 Initial Investment Title Number of people Salary Page 33 (per Tet holiday bonus 8,501,310,0 Other occasional bonus Extra time a month) Manager 15,000,000 ₫ 7,500,000 ₫ 500,000 ₫ 2,000,0 Staff 12,000,000 ₫ 6,000,000 ₫ 450,000 ₫ 1,600,0 Repairing staff 10,500,000 ₫ 5,250,000 ₫ 400,000 ₫ 1,400,0 Total 10 37,500,000 ₫ 18,750,000 ₫ 1,350,000 ₫ 5,000,0 Operating rate Container type Number of operating time Reve 192 597 202,98 422 1313 893,11 Container number 20ft 10 Domestic 42ft 22 Page 34 Normal season Peak season 405 891 20ft 20 International 42ft 48 324 165 489 384,75 778 395 1173 1,846,80 Total Revenue in leasing reefer container 3,327,64 Normal season (270 days) Peak season Average leasing cycle Number of cycle Average leasing cycle Number of cycl 40.50 19.20 10 16.20 8.23 Domestic International Container type Domestic Leasing price (VND/day) Container 20ft 340,000 ₫ Container 42ft 680,000 ₫ Page 35 International Container 20ft 787,500 ₫ Container 42ft 1,575,000 ₫ Choosing rate Estimated number of chosen Cleaning Price 130,000 ₫ 58% 2071 Container selection 100,000 ₫ 38% 1357 26% 929 Short-haul 3,800,000 ₫ Total revenue in value-added services Year of Project Total Revenue Revenu 269,2 135,7 3,528,68 3,933,69 Total expense Net Profit 7,261,339,303 ₫ 6,561,639,081 ₫ 699,7 7,624,406,268 ₫ 6,726,854,368 ₫ 897,5 8,005,626,581 ₫ 7,010,473,943 ₫ 995,1 8,566,020,442 ₫ 7,308,274,498 ₫ 1,257,7 9,165,641,873 ₫ 7,620,965,080 ₫ 1,544,6 9,807,236,804 ₫ 7,949,290,191 ₫ 1,857,9 10,493,743,380 ₫ 8,294,031,558 ₫ 2,199,7 11,228,305,417 ₫ 8,656,009,993 ₫ 2,572,2 Page 36 12,014,286,796 ₫ 9,036,087,349 ₫ 2,978,1 10 12,855,286,872 ₫ 9,435,168,574 ₫ 3,420,1 4.2.2 Financial appraisal • Payback Period According to the Payback Period method, we find that it takes approximate year and months to seek the breakpo However, in term of applying the Discounted Payback Period method, we will spend about year months and 19 days to reco amount of initial investment The timeframe is quite short and acceptable; therefore we keep moving to the financial evaluation m When apply the NPV, we calculate that the Net Profit value, including discounted factor, will seek the number of 5,43 VND at the end of the project With estimated discount factor of 10% per year, this data excesses the initial investment and Leasing Reefer Container Project will brings the company huge profit after 10 years took into account To calculate the IRR ind choose the discount rate of 20% Afterward we apply the formula and get the IRR approximate 19%, much higher than the set int To wrap up, we use the BCR formula and find the rate, that higher than 1, is 1.4 Thus, the Leasing Reefer Container reliable and definitely can be take into account Page 37 4.3 Risk assessment No business venture is without risk Projects from preparation to implementation of investment into production can occur many different types of risks, which can be due to subjective reasons or also due to objective reasons The calculation of the financial viability of the project is correct only if the project is not affected by a variety of possible risks Therefore, it is very important to assess, analyze and predict possible risks in order to increase the feasibility of the proposed calculation plan as well as proactively take preventive and mitigation measures Market risk (subjective risk) The number of companies renting reefer containers in the market is a decisive factor in the operation of the project, so it also determines the income of the business The world's demand for shopping and consumption has increased, especially in the US, European and Australian markets due to the number of people working from home, the increased demand for new household appliances and equipment, helping to increase business activities Import and export activities increased, leading to a sharp increase in the demand for containers At the time when the price increased, the rental cost per available container increased, Besides, the transportation of goods by air has not been cleared because of the complicated epidemic situation in many areas in the world In the world, most of the global fleet has not yet taken off Freight activities therefore "concentrate" into the maritime route Currently, many booking departments with empty container shipping lines have exceeded the allowed number, making the shortage of containers more serious Therefore, the risk from not having the market is very low and almost non-existent with the current situation Purchase risk: The company advances money but the container supplier does not deliver the goods, or delivers the goods with the wrong quality, quantity, etc., which affects the other plans of the company Contract risks: When signing a contract with a customer, the terms of the contract are not tight, causing disadvantages in terms of acceptance, payment or collection of money, etc., even if the contract is invalidated Customer risk: The company is delayed, cheated by customers, refuses to pay the container rental, leading to improper use of cash flows Page 38 Transaction risks: There are mistakes, errors in financial transactions, causing damage to the company and the project Risk of loss: the company is taken advantage of trust by employees from which fraud, embezzlement, loss of assets Human risk: occurs due to insufficient human resources to operate and maintain the company's containers when damage occurs or workers make mistakes during the management and maintenance process, leading to container damage thereby causing damage to the company Political risk: Tax increases affect the cash flow of the project Product risk: Containers are damaged a lot after being used, causing maintenance costs, thereby affecting project progress 10 Competitor risk: Many competitors appear in the same field and lease with lower prices for services in order to suppress prices, thereby affecting the price offered, the number of customers as well as the project progress Page 39 REFERENCE Page 40