MULTI-STOREY CAR PARK BUSINESS IN UGANDA

 MULTI-STOREY CAR PARK BUSINESS IN UGANDA

Introduction

The Multi-storey car park is one of the businesses that are still virgin in the country. A building of six levels accommodating approximately 80 spaces each on a site of approximately 0.5 acres located in one of the busy areas of the city centre would give the proposed park a wide catchment area. The park is planned to accommodate 500 vehicles with an occupancy rate of 80% per day. In its basic form the proposed car park building should be rectangular, with the footprint fully occupying the available site with two access ramps. The construction works to completion will take up to 12 months at a cost of US $2,280,000. On completion of construction the car park is estimated to generate a profit margin of 26% per annum and a payback period of 3 years 3 month.

Design considerations

The design shall include both architectural and structural plans. The proposed Car-park architectural design will consider the customer carefully and provide a system that is simple and safe. It must however, be compatible with the locality and follow the guidelines established by the Local Planning Authority in terms of appearance and scale. These principles of use and planning tend to control the size of the car park, circulation facilities, and geometric design requirements. Parking yards, stairs and ramps are the major features in the design and the design must have all stairs rise to the full height of the building, giving access/exit to all levels including the roof.

Interior ramps are most commonly used. Parking structures are subjected to the heavy and shifting loads of moving vehicles, and must bear the associated physical stresses. It is therefore imperative that expansion joints are used between sections not only for thermal expansion but to accommodate the flexing of the structure’s sections due to vehicle traffic. Construction Process The site shall be cleared and leveled and left to settle ready for Construction will be started just like any other storey building taking into consideration the pressure it is bound to hold. It is proposed that frameless„ structural‟ glazing is used to the outer walls of the stair towers allowing daylight to flood in and clear views out. The solid walls and roof elements of the stairs are finished in smooth white render, enhancing the simple, clean lines.

Capital Investments Requirements

Capital investment item units Qty @ in US $ Total
Land (0.5 Acres) No. 1 600,000 600,000
Site Development( Excavation $ filling) 1 400,000 400,000
Construction of 6 Storey Parking Block 1 1,600,000 1,600,000
Site Management 1 40,000 40,000
Office Equipment No 1 25,000 25,000
Computer Equipment 1 10,000 10,000
Motor Vehicle No 1 20,000 20,000
Breakdown Towing and Emergency Repairs 2 60,000 120,000
Preliminary Expenses No 1 50,000 50,000
Total 2,805,000 2,865,000

Production and Operating Costs

Operational costs Per Year
Per/month Per Year
Staff Salaries 3,200 38,400
Other Staff Costs 4,690 56,280
Motor vehicle operations and maintenance 300 3,600
Office Supplies 500 6,000
Utilities (Water, Electricity & Telephones) 300 3,600
Public Relations 60 3,600
Building Insurance 833 10,000
Depreciation Expenses
Total Operating Costs 9,883 121,480

The service is assumed to be provided for 312 days per year. Depreciation assumes Buildings at 2%, MV at 20%, computers 10% and Equipments at 12.5%. A production Month is assumed to have 26 work days.

Service Costs and Price Structure in US$

Item % of Occupancy Lots Lots available Per Day Lots available Per Yr UPx Revenue/ Month Revenue /Yr
Parking Fee Revenue
2 Hourly Parking Lots 20% 4 4 384.0 1 384 119,808
2 Hourly Parking Lots 30% 2 2 288.0 2 432 134,784
Day Long Parking 50% 1 1 240.0 3 600 187,200
Item % of Occupancy Lots Lots available Per Day Lots available Per Yr UPx Revenue/ Month Revenue /Yr
Lots
Overnight Parking Lot 20% 1 1 96.0 4 384 119,808
SubTotal 1,800 561,600
Revenue from Advertising No. of Levels No. Per Level Total Bill Boards UPx Revenue/ Month Revenue /Yr
Advertising space 6 60.0 360.0 900 27,000 324,000
Revenue from Breakdown Towing & Emergency Repairs Annual Traffic Handled % Requiring Emergency annual No requiring Service UPx Revenue/ Month Revenue /Yr
Breakdown Towing & Emergency Repair Services 314,496 2.5 7,862 10 6,552 78,624
Grand Total 35,352 964,224

 

 

Profitability Analysis

Profitability Item Per day Per Mnth Per year
Revenue:
Parking Fee 69 1,800 561,600
Advertising Space Fee 1,038 27,000 324,000
Towing & Emergency Repairs Fee 252 6,552 78,624
SubTotal 1,360 35,352 964,224
Less: Operating Costs 729 18,960 230,405
Profit 630 16,392 733,819

Market Viability: The market demand for parking yard is increasing every year due to the increased number of people purchasing vehicles as it has become a necessity rather than a luxury good. Risks

The business risk associated with this idea is the thief of Vehicles if the security is not well monitored.

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