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Welcome to our series of articles on feasibility studies.

1. What is a Feasibility study?
2. What is a bankable feasibility study?
3. How to do a feasibility study?
4. Feasibility study consultants: expertise needed
5. Cost of a feasibility study
6. Car Park Feasibility Study: Key considerations
7. Hotel Feasibility Study: Methodology
8. Feasibility study of solar PV projects: Key components
9. Feasibility study of real estate developments
10. Feasibility study of marina projects

In this post we will highlight all the key consideration you should take into account if you are developing a feasibility study of a car park infrastructure project.

Introduction:

As urbanization continues to shape our cities, efficient parking solutions have become a pressing concern. A well-designed and strategically located car park can alleviate traffic congestion, enhance urban mobility, and contribute to sustainable development. In this blog post, we will explore the essential elements of a feasibility study for a car park. By conducting a thorough assessment and analysis, our consulting company aims to provide valuable insights into the viability, potential challenges, and best practices for developing a successful car park project.

Contact us if you are looking for car park consultants.

1. Market Analysis:

A comprehensive market analysis forms the foundation of any feasibility study. Understanding the local demand for parking spaces, including current and projected future needs, is vital. Factors such as population density, vehicle ownership trends, commercial activities, and transportation infrastructure should be evaluated to determine the feasibility and potential profitability of a car park.

Car park market analysis in Feasibility study. Source: Aninver 

Conducting a detailed analysis of revenue potential is crucial. Estimating the expected occupancy rates, average parking durations, and pricing structures will help project the revenue streams. Market research on competitive pricing, demand elasticity, and customer preferences can further refine revenue estimates and inform the financial viability of the project.

2. Location Assessment

Selecting the right location for a car park is crucial for its success. A detailed evaluation of potential sites, taking into account accessibility, proximity to major traffic corridors, public transportation hubs, and nearby amenities, is essential. Additionally, zoning regulations, land availability, and environmental considerations must be thoroughly investigated to ensure compliance and minimize potential obstacles.

3. Technical Considerations

An in-depth analysis of the technical aspects of the car park project is necessary to optimize its functionality and efficiency. Factors such as capacity estimation, layout design, traffic flow analysis, and parking management systems should be assessed to maximize space utilization, minimize congestion, and enhance user experience.

 Evaluating the capital expenditure (CAPEX) and operational expenditure (OPEX) is critical for financial planning. The CAPEX includes costs associated with land acquisition, construction, equipment, and technology implementation. The OPEX encompasses maintenance, security, staffing, and utility expenses. Understanding these cost elements will provide a comprehensive financial outlook for the project.

4. Risk Analysis

Conducting a risk analysis is vital to identify and mitigate potential challenges that could impact the project's success. Factors such as regulatory changes, unforeseen construction delays, market fluctuations, and competition should be evaluated. Additionally, assessing potential risks related to financial sustainability, technological disruptions, and community acceptance will help develop contingency plans and risk mitigation strategies.

Risk analysis in Feasibility study. Source: Aninver 

5. Financial Viability

Determining the financial viability of the car park project is paramount. A detailed financial analysis, including cost estimation, revenue projections, operational expenses, and potential funding sources, should be conducted. Evaluating different revenue models, such as hourly parking rates, season passes, and partnerships with nearby businesses, will help optimize profitability and long-term sustainability.

Assumptions in Financial Analysis of Car park Feasibility study. Source: Aninver 

Several financial parameters will determine the viability of the project. These include the return on investment (ROI), payback period, net present value (NPV), internal rate of return (IRR), and debt service coverage ratio (DSCR). Assessing these parameters will enable the evaluation of profitability, financial sustainability, and the ability to attract investment for the car park project.

Sensitivities in Financial Analysis of Car park Feasibility study. Source: Aninver 

6. Social and Environmental Impacts

A robust feasibility study must account for the social and environmental implications of the car park project. Assessing the potential impact on nearby communities, including noise pollution, traffic congestion, and visual aesthetics, is crucial for maintaining positive stakeholder relationships. Moreover, incorporating sustainable design principles, such as green infrastructure, rainwater harvesting, and energy-efficient lighting, can minimize environmental footprint and align with sustainable development objectives.

A comprehensive feasibility study of a car park provides valuable insights for successful project implementation. By considering market demand, selecting optimal locations, addressing technical requirements, conducting a risk analysis, and evaluating financial parameters, consulting companies can assist public and private clients in making informed decisions. Investing in efficient parking solutions not only enhances urban mobility but also contributes to sustainable and inclusive development, making cities more livable and resilient for future generations.

Aninver Development Partners and its team have developed several feasibility studies of car park projects for potential PPP projects and concession projects. See examples below: 

•  Feasibility study of car park PPP project in Bishkek
• Procurement of parking concession in Niño Jesús Hospital in Madrid

Contact us if you need help with your car park project. We are specialists in PPP Feasibility studies and act as PPP transaction advisors.