Extended Gate - Barriers and opportunities for intermodal improvements, a case study of Port of Gothenburg

Abstract: Extended gate is an intermodal concept aiming to achieve improved transport efficiency in the hinterland through a more integrated model, compared to concepts that are currently in use, such as dry ports. Functionally it is an extension of the gated area of a port terminal into the hinterland in order to achieve operational efficiency for the supply chain actors and improve customer experience for cargo owners. The concept has been developed for several years and, with increasing digitalization, the implementation chould be nearing. The challenge is to define and implement an extended gate. The extended gate is aiming to increase transport efficiency and to mitigate negative environmental effects in the hinterland transport network such as congestion, noise and air emissions while also strategically directing trade corridors in ports’ competition for hinterland. The study is made in cooperation with the port authority of Gothenburg and aims to investigate innovative hinterland transport solutions and this will consequently be achieved by answering the three research questions raised regarding the extended gate concept. • What could an extended gate mean for terminals and port, in terms of transport efficiency? • What could an extended gate be, in terms of level of integration? • How could an extended gate potentially be implemented in the case of Port of Gothenburg? In order to achieve this, the authors investigated the relevant frameworks through a literature study. During the study, stakeholders were asked questions relevant to the effects of, and implementation of, an extended gate. Both in general, and in Port of Gothenburg (PoG) specifically. Barriers and opportunities were identified by the interviewees and is presented in the results. These results were applied to the extended gate concept and conclusions drawn with regards to the development and implementation of an extended gate from the PoG. An extended gate can be achieved either by vertical integration or through more close cooperation. Acquisitions remove conflicts of interests, whilst collaborations can create shared incentives among the stakeholders. A collaborative extended gate network can through co-ownership with multiple stakeholders be kept local. As the extended gate network addsvalue to the PoG, the added value can be assigned a price in a lease. Offering access to digital infrastructure can be as important as access to physical infrastructure. Transportation to and from the extended gates can be offered as a concession. As average container vessel size continues to increase, more and more containers are shifted at a port call. By establishing a sustainable, high-capacity, transport corridor, economies of scale can be achieved in the port hinterland. The extended gate is adding value by reducing the complexity of intermodal transport, lowering working capital needs for importers, reducing the carbon footprint, reducing the overall lead times, and increasing transport efficiency. An extended gate does not have to be completely what the literature describes it to be, it can be designed for any mode of transport and be located at any distance from the port. Neither does the extended gate have to be exclusively intermodal, nor necessarily orchestrated by the port terminal. Therefore, the authors suggest a distinction between a city-centred extended gate, located adjacent to the port city, and a hinterland extended gate. The authors find that the hinterland extended gate is a more integrated version of an intermodal terminal and can be made useful in achieving other strategic goals than the city-centred extended gate.