Novimar deliverable 2.5

Subtitle:Check applicability in a different case study

This deliverable examined the business-economic evaluation of the VT concept for the Danube case study. The transport model used in D2.4 was used after further adjustments. Two BMs were applied, BM3 in which one shipping company owns all the fleet in the VT and the BM4 in which the VTO doing the VT management is a digital platform and does not belong to the same shipping company that owns the fleet. Two types of analyses were conducted, the CO analysis and the VT analysis, examining the economic viability of the VT from the perspective of the CO and the VO respectively. The CO analysis calculates the TLC in the current situation and in the VT situation and compares them. If the former is higher than the latter ones, then there are TLC savings and it is worth it from a business-economic perspective for the CO to join the VT. More specifically, the CO analysis calculates the TLC savings when transporting one unit of cargo from zone A to Zone B, by comparing two types of transportation, i.e. road-current IWT-road and road-VT waterborne-road. The VT analysis calculates the annual VT costs for a voyage between Port A and Port B and the annual current costs for the same costs. If the latter are higher than former, then there are VT benefits and thus there are benefits for the VO to join the VT. In order for the VT to be realized, all the three main actors of the concept need to have economic benefits, the VO, the CO and the VTO. It is still possible for the VT concept to be realized, if the losses of one or two of the actors are compensated for by the benefits of the third actor that has benefits, under the boundary condition that this third actor that provides the support to the other two actors with the losses will continue to have benefits after the benefit distribution. The business-economic evaluation of the VT concept in the Danube region showed that overall, the main ‘’problem’’ is the low cargo volumes and as a result the low frequency of VT departures creating high waiting time costs. The VT concept was found to be non-economically viable from a VO perspective due to the above two reasons. The only way that can make the concept viable is the usage of the new cargo systems developed in WP4. Then, the VT has very high business-economic benefits that reach up to 26.3 million euro for the Somovit, Ruse, Silistra route. The VO analysis was conducted for the three routes with the highest cargo volumes: 1)Passau, Linz, Vienna, Bratislava, Györ-Gönyü, 2) Somovit, R use, Silistra and 3) Somovit, Ruse. The VT composition that was used for the analysis is a mixed VT composed by one dry cargo LV, one container FV and one liquid cargo FV. The business-economic evaluation of VT from the perspective of the CO showed that the VT concept is also economically viable. COs have also business economic benefits for the two routes and scenarios for which the VO has been found to have benefits, being 1) the Somovit-Ruse route (100km, 0% of cargo transported via pushed convoys, 12 h interval, 2 LVs, BM3 and reduction of cost and time of cargo handling by 25%, 50% and 75%) and 2) the Somovit-Ruse-Silistra (220km, 0% of cargo transported via pushed convoys, 18 h interval, 3 LVs, BM3 and reduction of cost and time of cargo handling by 25%, 50% and 75%). The TLC savings are very similar for both routes and equal to 19.06 euro/TEU (container cargo), 1.40 euro/ton (liquid cargo) and 1.38 euro/ton (dry cargo) for a 25% reduction of the cost and time of cargo handling, 36.22 euro/TEU (container cargo), 2.60 euro/ton (liquid cargo) and 2.49 euro/ton (dry cargo) for a 50% reduction of the cost and time of cargo handling and 53.37 euro/TEU (container cargo), 3.70 euro/ton (liquid cargo) and 3.59 euro/ton (dry cargo) for a 75% reduction of the cost and time of cargo handling. Overall, the only way that the VT concept can be economically viable in the Danube case study is by using the new cargo systems that will allow reducing the cost and time of cargo handling. Taking the above results into consideration, a social welfare assessment will be done, to calculate the external cost savings thanks to the VT (WP1). Therefore, it will be seen if subsidies can be given in order to implement the VT concept.

Publication year:2021

Keywords:Minutes and reports

Accessibility:Closed