Bandy auto auction center
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Bandy Auto Auction Center. Prepared for: Joseph Kojo Owusu Prepared by: Development Consulting International, LLC . Presentation Outline. Purpose Site Location Site Plan Project Benefits Project Competitiveness Profit Potential Costs. 2013 Toyota Camry Hybrid

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Bandy Auto Auction Center

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Bandy auto auction center

BandyAuto Auction Center

Prepared for: Joseph KojoOwusu

Prepared by: Development Consulting International, LLC


Presentation outline

Presentation Outline

  • Purpose

  • Site Location

  • Site Plan

  • Project Benefits

  • Project Competitiveness

  • Profit Potential

  • Costs

2013 Toyota Camry Hybrid

Source: MotorTrend.com


Purpose

Purpose

Historical Demand for Autos in Ghana:

Current Rates and Future Projections:

The Bandy Auto Auction Center will:

  • Serve as Ghana’s only central hub for the exchange of autos; a sector with rising market demand

Source: Ghana Statistical Service (2008)


Purpose continued

Purpose (continued)

  • Feature five separate tracks to allow multiple auto auctions at one time

  • Provide low-cost, mechanical inspection services on site

  • Offer a testing track to ensure customer satisfaction


Purpose continued1

Purpose (continued)

  • Employ at least 30 staff in high-paying, sustainable jobs in mechanics, sales, customer service, and site security

  • Set the standard for automotive trading and transportation-based development in West Africa and lead to the expansion of a cluster of additional businesses around the greater Accra region


Site location

Site Location

Convenient Location

  • Near Kpong, Ghana

  • Connected to Tema-Jasikan Rd

  • 30 minute drivefrom Tema/port

  • 40 minute drivefrom Accra


Site plan

Site Plan

  • Buildings

    • Main building (office, water, food, restrooms)

    • Auction room

    • Checking center

    • Mechanic shop

  • Testing driveway

  • Green space & wetland

  • Wall and road spike

    • Connecting road to Tema-Jasikan Rd

Phase 1 Design


Site plan continued

Site Plan (continued)

  • Parking

    • General

      • 76 employee and customer (including disabled)

    • Inventory:

      • 626 (Phase 1)to 1567 cars (Phase 2)

Phase 2 Design (includes additional parking capacity)


Benefits of an auto auction

Benefits of an Auto Auction

  • Decrease the price of autos in Ghana

  • Increase market transparency, fairness, and price stability

  • Modernize Ghanaian market and improve international trading

  • Increase local employment and national tax revenue


Benefits continued

Benefits (continued)

  • Under the current Ghanaian Auto Market…

    • Overpriced vehicles due to uncompetitive markets

  • With the Bandy Auto Auction Center…

    • Competition creates lower and more accurate price point


Benefits continued1

Benefits (continued)

  • Under the current Ghanaian Auto Market…

    • There exists low transparency for auto purchasing, as buyers must purchase on streets or online without adequate standards or testing facilities

  • With the Bandy Auto Auction Center…

    • Transactions are visible, under the guidance of certified mechanics, and within a modern testing facility. Better value assessments lead to more stable prices!


Benefits continued2

Benefits (continued)

  • Under the current Ghanaian Auto Market…

    • Auto trading is limited within Ghana due to factors mentioned prior

  • With the Bandy Auto Auction Center…

    • Modernization of Ghanaian auto market and set the regional standard for international trade, which will eventually include other trading itemssuch as heavy equipment andseptic tanks


Benefits continued3

Benefits (continued)

  • Under the current Ghanaian Auto Market…

    • Only 19% of Ghanaians are employed in the formal private sector

  • With the Bandy Auto Auction Center…

    • Over 30 direct, high-wage, long-term jobs are created in sales, trade, mechanics, and site security. Advertising and utilitycompanies will gain business as well and construction workers will be needed immediately


Benefits continued4

Benefits (continued)

  • Under the current Ghanaian Auto Market…

    • Limited tax revenues as auto purchases occur outside of the formal marketplace

  • With the Bandy Auto Auction Center…

    • Increase tax revenues for Ghana (i.e. corporate, income taxes, sales, and service taxes) and raise the nation’s global domestic product (GDP)


Capital costs

Capital Costs

  • $4,022,648

  • Capital costs largely due to initial construction phase


Operational annual costs

Operational/Annual Costs

  • $487,477

  • Wage costs are largest expense during post-construction, operating phase


Profitability

Profitability

  • Revenue Streams

  • Exhibition fee: $25per car

  • Test drive fee: $2per car

  • Trading fee: $300per car

  • Mechanic exam fee: $50 per car

  • Annual revenue $1,888,983(projected nine year average)

  • Estimated Auction Center Demand:

    • Exhibit 60 cars per day

    • Test drive 10 cars per day

    • Selling 10 cars per day

    • Mechanic exam 5 cars per day


Profitability continued

Profitability (continued)

  • Payback period = less than 5years


Review

Review

  • The Bandy Auto Auction Center will:

    • Reduce the cost of and improve access to autos and other motor vehicles for all Ghanaians

    • Set a transportation-based model for development and international trade in West Africa

    • Produce millions USD in tax-based revenue for the Ghanaian government

    • Produce hundreds of local jobs


Contact

Contact

  • Project Leader:

  • Joseph KojoOwusu

  • Project Support:

  • Development Consulting International, LLC

  • Website: developmentconsultinginternational.org

  • Email: [email protected]


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