Research Article

Evaluation of Key Factors of Logistics Risks for Overseas EPC Projects

Table 1

Logistics risks of overseas EPC projects.

First-level indexRisk factors of second-level index

Political and legal risky1: risk of local protectionism and exclusivity
y2: corruption and inefficiency of government agencies
y3: risk of arbitrary changes in government policy
y4: risk of foreign exchange and interest rate policy changes
Risk of natural factorsy5: natural disasters such as thunderstorms and tsunamis
y6: accidents such as collision, grounding and sinking
Market risky7: credit risk of suppliers and customers
y8: risk of price change
y9: risk of cultural differences between suppliers and customers
y10: unpredictable risks of contract performance
Technical risky11: security risks of insufficient packaging and reinforcement
y12: risk of transportation routes and plans not being scientifically proven
y13: risk of inapplicable transportation equipment and tools
y14: risk of noncompliance of information systems and equipment
Operational risky15: risk of irregular operations by operators
y16: risk of loading and warehousing operation conditions not meeting the requirements
y17: risk of untimely and inaccurate job information delivery
y18: risk of transportation roads and depots not meeting the carrying requirements
Management risky19: risk of incomplete decision-making mechanism of logistics plan
y20: risk of poor operational ability and literacy of operators
y21: risk of imperfect business process and information communication mechanism
y22: unreasonable risks set by the organization