Alternative transportation through Valletta and its surrounding harbours : a feasibility study

Abstract

Purpose: The reason for conducting this study was induced by the transportation problem in Malta, which has led to political pressures on past and current governments. This research aims to assess the financial feasibility of an alternative transportation system linking Cottonera, Valletta and Sliema, from a private investor’s point of view. The idea involves the excavation of a tunnel at sea level, beneath Valletta which will connect the Grand Harbour with the Marsamxett Harbour and enable commuters to travel by utilising a sea ferry.

Design: This study delves into the capital and operational expenditures involved in running such a business. Upon establishing these costs, this research explores the ideal pricing strategy that would be adopted by private investors seeking attractive returns. A financial model has been created upon which several investment appraisal methods were applied. Interviews, questionnaires and other online researches were used to obtain the necessary information which was fed into the financial model.

Findings: The financial viability of this project was determined upon the assessment of the investment appraisal techniques applied in this study. Through the financial model which was built, it emerged that the proposed project is financially viable.

Conclusions: Although this study has its own assumptions and limitations, it resulted that such project should be studied in further detail being that there is a potential for a successful business.

Value: Different stakeholders interested in this type of project can make use of this study as a preliminary understanding of what such project entails.