Experience

Cases

News

Business Plan for a Project

Situation

  • The company was planning to buy around 50 passenger coaches and via leasing them and running them with JSC Russian Railways on the most attractive routes
  • To finance the coach purchase, revenue streams from servicing JSC Russian Railway wagons were identified, as well as additional financing
  • The changeover from servicing Russian Railways JSC coaches to using their own rolling stock assumes additional infrastructure costs, though income from ticket sales in their own coaches would in its entirety transfer to the company

Goal

  • To develop a business plan for the project, including the financial parameters such as demand for additional financing and the key risks

Our approach

  • Conducting a marketing analysis for the project. Develop a financial model for the project
  • Modeling the three most important scenarios: coach occupancy levels, ticket prices and infrastructure use tariffs
  • Conducting analysis of project sensitivity to key factors
  • Analyze of project risks
  • Identifying the need for additional project financing

Results

  • A business plan for the project was prepared and presented to the shareholders 

 

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