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Two Alternative Projects to Eurasia Tunnel

In: Business and Management

Submitted By ng0456
Words 1326
Pages 6
Introduction
In this chapter we find alternative solutions for decreasing traffic situation in Istanbul. There are two possible solutions for that; they are usage of a third Bridge that connect two continents and usage of Ferries.
Our assumptions for alternative solutions are to develop car transportation via ferries or a third bridge. In order to make comparison of all three projects more easy we take the capacity for all projects as 120,000 vehicles per day, because the capacity of the tunnel and the third bridge are similar.

Two alternative solutions
As it known in Istanbul there is a big concern about traffic and its possible solutions. The main difficulty for people that live in Istanbul is to get from Asian side to European side by their own car and as example to get from Kadikoy to Zeytinburnu by normal way through the bridge can take approximately 100 minutes. The Eurasia Tunnel project is a new solution for this problem that will take 15 minutes to pass from one side to another. But also there are two more possible solutions like usage of Ferries and usage of a Third Bridge.
Pic. 1 (A- Zeytinburnu, B-Kadikoy 1-Ferry for cars) On the Picture 1 there is shown the way that vehicles have to pass in order to get from point A to point B. And it is obvious that the way is not short that is also including traffics on the bridges. So the alternative solution can be a usage of ferry.
There are two types of ferries in Istanbul one of them that can take only passengers as a bus, so it called Ferry Bus; and the other one can take passengers with their own car. But nowadays there is only one pier for car’s Ferry, from Sirkeci to Harem, and its price starts from 3,5 TL to 20 TL according to car’s type and the time. Its capacity is about 2700 vehicles per day.

Also ferries work from 7 a.m. to 22.30 p.m. and for each time to get to another side it takes around 20 minutes and on weekends even 30 minutes.
It is obvious that there are not enough piers to cover the capacity of the bridge, that is around 120,000-130,000 per day. In order to cover it we have the first to build necessary number of piers and the second acquire the necessary amount of ferries.
So there should be build more piers. The area of one pier is about 16,000(m2) and according to Turkish government’s quota for year 2012 that says that 1(m2) for building a pier the cost is equal to 342 USD (615 TL) (www.resmigazete.gov.tr) and the approximate price for one ferry that can carry about 60 vehicles is 1,3 million USD. To sum up, the result of alternative project, to build extra numbers of piers in order to cover norm of daily capacity, is not efficient; because it required a huge numbers of piers that have a big area to be placed and around 130 ferries that have to serve each hour for about 7200 vehicles for 15 hours. So we need to build around 40 piers to cover the capacity and its cost will be around 218,8 mln. USD. So total cost of the project is 387.880.000 USD.
Table 1.
Capacity 16.000 numbers of piers 40 cost per m2 342 usd cost per ferry 1.300.000 usd numbers of feries per hr 130 number of vehicles per hr 7.200

Cost per pier 5.472.000 usd
Total cost for 40 piers 218.880.000 usd
Total cost for 130 ferries 169.000.000
Total cost of a project 387.880.000 usd

If we compare the price of Eurasia Tunnel which is 1,1 billion USD to the project of building of piers which price is 387.880.000 USD is really low, but we have to consider about pollution of the bay and its traffic that already is high and have to be solved, and as it is known there will be build a new project Istanbul Canal that should cover its problem. So instead of decreasing traffic on the roads this project will increase it on the bay. Just to say there are too many of all, many piers, many ferries and much pollution.
More over it is not necessary that there will be enough demand for ferries to cover all costs. So according to table 2 it seems to be not successful project.
The building of a third bridge can decrease traffic. Its capacity is the same with the other bridges in Istanbul 120,000-130,000 vehicles.

Pic. 2

Table 2.
Cash inflows
Price for 1 vehicle 3,89 USD
Numbers of vehicles per fery 60,00
Numbers of feries per hr 130
Revenue from vahicles per day 30.333,33 USD
Revenue per year from vehicles 11.071.666,67 USD Price per passanger 2 USD
Numbers of passangers (avarage per hr) 800
Revenue for passangers per day 20.000 USD
Revenue per year from passangers 7.300.000 USD Total cash inflow per year (365 days) 18.371.667 USD Cash Outflows
Fuel per Ferry per km (average) 40 USD
Average distance between two continents 5 KM
Times ferry goes per day 30 Times
Numbers of feries per hr 130
Cost perferry per day for fuel 6000 USD
Cost for all ferries per day 780.000 USD
Cost for all ferries per year 284.700.000
Salary of personel per year in 130 ferry 19.968.000 USD
Maintenance per year (avarege) 10.000 USD
Salary of personel per pier per year 2.736.000 USD
Total cash outflow per year 307.414.000 USD
Net Income - 289.042.333

Time.The Eurasia Tunnel project has been formed in 2010 and already has passed through several stages. The Assembly of Istanbul Metropolitan Municipality has approved the project; its construction has been started in June, 2012. The project is planned to be completed in 55 months; by now its construction process is going in hand with the plan of designers. According to the current condition of the project it seems that the project will be finished in the expected date.

Cost. Turkish-Korean Joint Venture that held this project is Yapı Merkezi from Turkey and SK E&C, Kukdong, Samwhan Corp. and Hanshin from Korea united in a partnership named ATAŞ (ATAŞ Avrasya Tüneli İşletme İnşaat ve Yatırım ). These companies have taken responsibility for the project and will be financing it.

Performance. In order to create a good quality product that would perform service for a long period of time fundamentals of the project take significant part in it- starting from the location of the tunnel and finishing with its final steps need to be deliberately organized. This project meets this condition: location has been chosen carefully with the smallest possible risk (as risk always exists), all the equipment needed during the construction is a high quality and last technology machines; its materials should be less harmful for people that going to use the tunnel. All these concepts will result in a good quality product.

Client acceptance. This final product would serve lots of people- drivers who stuck in traffic every day, sometimes twice or more in a day. There are many people who drive between the two continents in Istanbul and have to waste their times waiting in a traffic.

As it can be seen from the table below Eurasia Tunnel is more efficient compare to ferry and less costly compare to third bridge. Even though the tunnel for automobiles is not much known in Turkey it is clearly understandable and seems a logical project. Population in Istanbul aware of the seriousness of the traffic problem in the city, therefore the logic of this project could be easily understood.

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