Socioeconomic Impacts of Transitioning to Collaborative Port Operations - A case study of the Port of Gothenburg

Abstract: The purpose of this study is to derive a method for estimation of costs and benefits of implementing Port Collaborative Decision Making (Port CDM), and to apply this method to the Port of Gothenburg. By using the Port of Gothenburg as a case study, conclusions can be drawn regarding the economic viability of Port CDM in one of Scandinavia‟s largest ports. This study considers two major sources of benefits that are hypothesized to result from transitioning to collaborative port operations: improved possibilities for speed optimization prior to arrival in port due to increased predictability in estimated berthing times, and shortened service times due to increased possibility for planning and resource optimization by port service providers.The estimation of impacts is based on one month‟s traffic data in the Port of Gothenburg. Predictability of estimations is analyzed to determine the benefit potential of Port CDM. The estimated cost savings for cargo vessels can be divided into 5 categories: bunker, emission, time, manning and capital cost savings. The costs of implementing and maintaining Port CDM are estimated with values from relevant previous research.The results of this study indicate that the implementation of Port CDM in the Port of Gothenburg is a profitable investment, for the shipping industry and for society as a whole. The estimated annual net benefit is 27.3 million euros. A sensitivity analysis using alternative unit valuations for emissions, as well as low and high estimations of the effectiveness of Port CDM, indicates that the economic viability of the project is robust under all assumptions considered.