No full-text available
To read the full-text of this research,
you can request a copy directly from the authors.
Developing a Strategy for LNG Powered Transport Corridors in the Baltic Sea Region
Abstract
International and national policies and regulations call for faster transition to sustainable energy production and use. Within the shipping industry one way forward is the use of LNG. Despite being of fossil origin LNG is considered to be an important step towards cleaner shipping given the better properties of the exhausts. This paper will present the development of a strategy for smoother and more efficient use of LNG as a fuel for transport in the Baltic Sea Region, with the aim to enable blue transport corridors in the region. This will be done by investigating transport flows, LNG infrastructure developments, and by also including a wider value chain that incorporates all transport modalities as well as industries that today use natural gas. The strategy will further provide LNG stakeholders with a knowledge base on policies and regulation as well as on technological standards, and describe well-functioning solutions and business
models already present in the transport sector.
... Apart from such efforts, further challenges of supply chain management and the logistics sector currently refer especially to environmental and sustainability issues (e.g., IMO regulations: Global Sulphur Cap 2020, Emission Control Areas like SECAs and NECAs), as well as transportinduced growth and infrastructure developments (e.g., TEN-T in Europe, Silk Road 2.0 in Asia) (Gerlitz et al., 2018;Henesey & Philipp, 2019;Madjidian et al., 2017;Philipp et al., 2020aPhilipp et al., & b, 2019a. Nonetheless, in particular, the technological progress associated with the Industry 4.0 paradigm is often regarded as the savior for managing these contemporary, as well as evergreen challenges in the context of logistics and especially supply chain management that are related to the dominating position of bigger players, establishment of trust and relationships between the different actors, fragmented structures, supply chain finance and leadtime as well as throughput (Beth et al., 2003;Nyhuis & Wiendahl, 2008;Philipp, 2020a;Philipp et al., 2020bPhilipp et al., , 2019bPhilipp et al., & 2019cPrause & Hunke, 2014;Zhao & Huchzermeier, 2018). ...
The research purpose of this paper is to empirically examine the effects of technological readiness and innovation on logistics performance. To build up and maintain an important role in global supply chains, nowadays it is obvious that countries and logistics providers need to achieve competitive advantage in terms of digitalization. However, there is a lack of empirical studies about the impacts of information technologies and innovation potential on the logistics efficiency of countries. Hence, the study analyzes whether the corresponding pillars of the Global Competitiveness Index (GCI) matter for the Logistics Performance Index (LPI) and its dimensions. For determining the effects, the pooled regression approach is applied. The results show that technological readiness and innovation are positively and statistically significantly correlated with logistics performance: competence and quality of logistics services, efficiency of customs clearance processes, ability to track and trace consignments, frequency with which shipments reach consignee within scheduled or expected time, and ease of arranging competitively priced shipments. The findings of this study suggest that investments in innovations and technology progress improve countries' logistics efficiency, which is an important prerequisite for enabling Logistics 4.0 and thus, Industry 4.0 and the digital transformation of the economy and society.
... The third option is to switch to other alternative sources of fuel such as Liquefied Natural Gas (LNG), methanol or hydrogen cells. These alternative fuels are being considered for future solutions to meet the SECA requirements Henesey & Philipp, 2019;Madjidian et al., 2017;Philipp et al., 2018). The investigations of Olaniyi, Atari and Prause (2018) in the Baltic Sea Region (BSR) revealed that most of the ships are switching to the use of low sulphur fuel because it removes the hassles of capital compliance investments. ...
Since the introduction of the amended Sulphur Emission Control Areas (SECA) regulations in 2015, the Baltic Sea has witnessed high compliance rate. However, a closer look to the experiences in the Baltic Sea reveals that the currently preferred compliance strategies depend on low oil price, where ship owners shun investments in abatement and maritime energy efficiency technologies, which may lead into an economic trap in the event of oil price increase. The research considers incentive provisions for maritime investors who make investment decisions related to clean shipping and maritime energy management against the background of the Global Sulphur Cap, which just entered into force at the beginning of this year 2020. Traditionally, the financial assessments of these decisions are based on capital budgeting methods comprising cash flow analyses and net present value calculations. The findings reveal that a Real Option approach represents a more realistic, reliable and promising method for the evaluation of abatement and energy efficiency projects, especially under uncertainty and high volatility in material resource markets. The results can be applied to the assessment of all types of projects in the maritime industry that depends on the price variation of the underlying asset during a specific period.
... Accordingly, LNG has been recognised as one of transitional measures, alternative strategies and business opportunities in maritime shipping and the entire transportation and energy system (Gerlitz et al., 2017). Moreover, it is argued that LNG is the most promising alternative shipping fuel technology in the short to medium term, especially for Short Sea Shipping and inland waterway transport (Madjidian, 2017). Nevertheless, especially in Europe, the needed LNG infrastructure is still in creation and causes high investment costs especially in ports (Philipp et al., 2018). ...
Automation technology has gained much traction over the last few years and its applicability to the maritime industry offers diverse opportunities, such as improved bunkering of Liquefied Natural Gas. To showcase this, an analysis is conducted in this research, starting with an outline of the current state of the art, which is then extended to consider future developments and implementations of automated solutions for LNG bunkering. It is argued that automation technologies and their progression in being accepted by industry will help to attain sustainable growth. Thereby, in order to save time and improve staff productivity in terminals there are factors that must be considered. Crucial factors that have been identified and thus, need be taken into account are among other things: fuel transfer flow, which includes the gasification and re-gasification characteristics; ship status; LNG tanks and their capacities; as well as methods of conventional bunkering that are currently applied in practice. In this context, reliable measurements are required to ensure trustworthiness for such risk factors involved in LNG bunkering.
... In this context, LNG is regarded as one of the most promising alternative strategies and business opportunities in maritime shipping as well as the entire transportation and energy system. Accordingly, LNG issues had been recently researched from the clean shipping [37] and strategic development perspective for a LNG powered transport corridor in the BSR [31]. Yet, no recent studies record approaches on LNG use as opportunity and value proposition leading towards emerging value chains that integrate different transport modes and business sectors, and where LNG is recognised as value proposition for all stakeholders involved. ...
Since the introduction of lower sulphur content with no more than 0.10% in the Sulphur Emission Control Areas (SECAs) from 1 January 2015, the Baltic Sea Region (BSR) is increasingly becoming subject to search for new economically and environmentally competitive and survival strategies. The BSR stands for a flagship maritime region in Europe in terms of good economic, social and environmental performance. In order to sustain, and much more important, to improve the overall eco-system performance of the BSR, Liquefied Natural Gas (LNG) has been recognised as one of transitional measures, alternative strategies and business opportunities in maritime shipping and the entire transportation and energy system. LNG might become a viable stepping-stone alternative solution for business, and be considered as a regulation-driven demand to comply with environmental regulations that aim to achieve the goals set by 2020–2050. As a response, ‘Go LNG’ ERDF part-financed INTERREG V project aims at reducing technological, knowledge and business gaps by providing operational and strategic approach. In line with project, the present study aims to answer the research question how to integrate LNG stakeholders involved in diverse LNG activities, with different needs, capacities and capabilities into one macro-regional transport and energy supply and value chain.
... In this context, LNG is regarded as one of the most promising alternative strategies and business opportunities in maritime shipping as well as the entire transportation and energy system. Accordingly, LNG issues had been recently researched from the clean shipping [37] and strategic development perspective for a LNG powered transport corridor in the BSR [31]. Yet, no recent studies record approaches on LNG use as opportunity and value proposition leading towards emerging value chains that integrate different transport modes and business sectors, and where LNG is recognised as value proposition for all stakeholders involved. ...
Since the introduction of lower sulphur content with no more than 0.10% in the Sulphur Emission Control Areas (SECAs) from 1 January 2015, the Baltic Sea Region (BSR) is increasingly becoming subject to search for new economically and environmentally competitive and survival strategies. The BSR stands for a flagship maritime region in Europe in terms of good econom- ic, social and environmental performance. In order to sustain, and much more important, to improve the overall eco-system performance of the BSR, Lique- fied Natural Gas (LNG) has been recognised as one of transitional measures, al- ternative strategies and business opportunities in maritime shipping and the en- tire transportation and energy system. LNG might become a viable stepping- stone alternative solution for business, and be considered as a regulation-driven demand to comply with environmental regulations that aim to achieve the goals set by 2020–2050. As a response, ̳Go LNG‘ ERDF part-financed INTERREG V project aims at reducing technological, knowledge and business gaps by providing operational and strategic approach. In line with project, the present study aims to answer the research question how to integrate LNG stakeholders involved in diverse LNG activities, with different needs, capacities and capabil- ities into one macro-regional transport and energy supply and value chain.
In 2018, 4.1 billion tonnes of freight and 437 million passengers passed through the 1200 European ports. This dimension of geographically concentrated activities is the rationale that ports are characterised by a high-energy demand and a high share of emissions. Driven by a growing awareness for a cleaner environment, a stronger focus on sustainability and intensified environmental regulations, ports are forced to take responsibility when it comes to environmental issues. As a response, in recent studies, the concept of ‘green ports’ emerged. Simultaneously, in the context of digitalisation, the term ‘smart ports’ has received growing attention in the latest scientific discussions, too. Since an important driver towards greener maritime operations is linked to digitalisation, we argue that digital efforts in ports should next to the automation of inherent logistics processes also contribute to reducing the emissions and energy demands. Previous studies have primarily concentrated on the automation of container handling operations. Hence, there exists a research gap concerning the automation of bulk cargo handling operations in ports. Thus, this study addresses the question of how to automate the dry bulk cargo loading operations in the frame of a green and smart port development. The developed case study refers to the seaport of Wismar, whereby the results show that the digitalisation and greener port operations can be successfully aligned. Overall, this study extends the discussion on green and smart port development, while it contributes to the scientific literature by proving that both conceptual ideas can be achieved in the operating business.
The logistics performance has a crucial role in the industrial and economic development of countries. This study aims to underline implications for policy makers in improving the logistics performance of countries in terms of Industry 4.0. For this purpose, the effect of digitalisation on logistics performance is analysed by using correlation and multiple regression analysis. The empirical study builds upon dimensions and indicators of the Digital Economy and Society Index (DESI) and Logistics Performance Index (LPI) of the World Bank. The results indicate that governmental policies should target to deliver sound framework conditions for the generation of human capital (here: ICT specialists), sustainable usage of internet services (e.g. professional social networks, online sales, etc.), integration of digital technologies (e.g. Big Data, Cloud computing, etc.), as well as digital connectivity (here: fixed broadband and 4G coverage) in order facilitate improvement of logistics performance.
To reduce emissions in the maritime transport sector, the International Maritime Organisation (IMO) follows a global clean shipping strategy. Among the different directives of IMO, currently especially the sulphur emission regulations pose challenges for the shipping industry. Related to this are the established Sulphur Emission Control Areas (SECAs) and the introduced global sulphur cap. To comply with the sulphur restrictions, according to the present technological state of the art, shipowners have three options for their existing fleet: the installation of emission abatement technologies, the switch to low sulphur fuels, or retrofitting for the usage of alternative fuels. Regardless which option is favoured, most often selected solutions still depend on fossil fuels. The reasons for this can be traced back to the fact that supply of biofuels is not ensured in ports and generally seen as no profitable solution. This paper develops and examines an innovative business model with a special focus on liquefied biogas (LBG). The study bases on collected qualitative and quantitative data, which was used by applying the Business Model Canvas. The results will highlight that the business model bears the potential to promote LBG supply. Next to this, the research will show that blockchain and smart contracts are able to foster the implementation of the business model and optimisation of value chain operations. Lastly, economic advantages were highlighted within a case study that refers to the seaport Karlskrona in Sweden and the RoPax ferries from Stena Line that travel back and forth to Gdynia seaport in Poland.
Seit 2015 ist die Ostsee Teil einer Emissionsschutzzone (ECA: Emission Control Area), in der verschärfte Abgasregeln für die Schifffahrt gelten. Der anfängliche Fokus der Abgasreduktionen lag auf der Verminderung von Schwefelemissionen, sodass die momentan geltenden Regelungen der IMO und der EU auch unter dem Namen SECA-Regeln überregionale Bekanntheit erworben haben, wobei das Kürzel SECA aus den Anfangsbuchstaben der Wörter "Sulphur Emission Control Area" resultiert. Die SECA-Erfahrungen und-Erkenntnisse seit 2015 machen den Ostseeraum zu einer Avantgarde-Region in der Schifffahrt, denn seit Anfang 2020 gelten weltweit globale Emissionsschutzregelungen für den Schwefelausstoß in Schiffsemissionen. Die erste Erkenntnis aus dem Ostseeraum betrifft die hohen Einhaltungsraten der SECA-Regeln durch die Schifffahrt, die bei über 95% lagen. Dabei offenbart ein detaillierterer Blick, dass die Einhaltung der SECA-Grenzwerte zum aller größten Teil durch die Verwendung von schwefelreduziertem Treibstoff erreicht wurde, da die meisten Schiffsbesitzer die hohen Investitionssummen in Emissionsreinhaltungstechnologien scheuten. Unterstützt wurde diese Entwicklung durch den seit 2015 niedrigen Ölpreis, der die Preisnachteile des teureren, schwefelreduzierten Treibstoffes kompensierte. Bei wieder ansteigendem Ölpreis kann sich der Aufschub der möglichen Abgasreinigungstechnologien aber zu einer ökonomischen Falle entwickeln, sodass eine genaue Analyse der verschiedenen Investitionsvarianten notwendig ist. Der Artikel diskutiert und analysiert zunächst die verschiedenen technischen Optionen zur Abgasreinhaltung von Schiffen und modelliert deren wirtschaftlichen Implikationen. Dabei wird das Hauptaugenmerk auf die Verwendung von schwefelreduziertem Treibstoff, wie LNG, bzw. die Verwendung von sog. Scrubbern gelegt. Traditionell werden Investitionsentscheidungen auf der Basis von dynamischen Investitionsmodellen gefällt, die über Cashflow-Analysen zu einem Ertragswert führen. Diese Ansätze erweisen sich aber als zu statisch und werden der stochastischen Natur der Einflussparameter wie etwa dem Ölpreis nicht gerecht. Daher werden die klassischen Ansätze in dem Artikel durch Bewertungsmodelle aus der Real Option Theorie und Monte-Carlo-Simulation erweitert und in einem Entscheidungstool automatisiert. Im Vergleich zu Ergebnissen mit realen Fällen aus der Schifffahrt erweisen sich die im Artikel vorgestellten Ansätze und Instrumente als zuverlässiger und realistischer. Weiterhin erlauben die im Artikel vorgestellten Methoden einen einheitlichen Zugang zur Bewertung aller relevanten Investitionsoptionen zur Einhaltung der SECA-Regelungen mit der Möglichkeit zur Übertragung in den Kontext des "Global Sulphur Caps".
The global environmental impact of air pollution from international shipping is increasing despite regulatory measures to curb the rise. According to European Environmental Agency forecasts, NOx emissions from international shipping in European waters are projected to increase and could be equal to that of land-based sources by 2020. Since 2010, the sulphur content in fuel used by hoteling vessels in EU ports has been subject to EU directive 2005/33/EC, which requires a maximum sulphur content of 0.1%. For gas oil, this requirement has applied since 2008.
The combined effort of reducing the emissions of sulphur dioxide, nitrogen oxides and greenhouse gases to comply with future regulations and reduce impact on climate change will require a significant change in ship propulsion. One alternative is to change fuels. In this study we compare the life cycle environmental performance of liquefied natural gas (LNG), liquefied biogas (LBG), methanol and bio-methanol. We also highlight a number of important aspects to consider when selecting marine fuels. A transition to use of LNG or methanol produced from natural gas would significantly improve the overall environmental performance. However, the impact on climate change is of the same order of magnitude as with use of heavy fuel oil. It is only the use of LBG and bio-methanol that has the potential to reduce the climate impact. The analysis did not show any significant differences in environmental performance between methane and methanol when produced from the same raw materials, but the performance of the methanol engines are yet to be validated.
Short sea shipping is facing harder requirements on exhaust emissions in the coming years as stricter regulations are enforced in some regions of the world. In addition, shortage of conventional fuels as well as restrictions on greenhouse gas emissions makes the search for new fuels of interest. The objective of this article is to assess important characteristics to evaluate when selecting fuels for short sea shipping. The following four criteria are considered: (1) local and regional environmental impacts, (2) overall environmental impact, (3) infrastructure and (4) fuel cost and competition with other transport modes. Special focus is put on environmental impact, and life cycle assessment is used for the environmental assessment. The fuels compared in this study are heavy fuel oil, marine gas oil, biomass-to-liquid fuel, rapeseed methyl ester, liquefied natural gas and liquefied biogas. This study shows that liquefied natural gas will reduce the local and regional environmental impacts more relative to the other fuels investigated here. Furthermore, liquefied biogas is found to be the most preferable if all environmental impact categories are considered. This study also highlights the importance to consider other impact categories for short sea shipping compared to deep sea shipping and shows that NOX emission is the dominant contributor to all assessed environmental impact categories with local and regional impacts.
Evaluating the costs arising from new maritime environmental 505 regulations
- H Bachér
- P Albrecht
Bachér H, Albrecht P (2013) Evaluating the costs arising from new maritime environmental
505
regulations. Trafi Publications, Finland. ISBN 978-952-5893-89-2
Council, the European Economic and Social Committee and the Committee of the Regions on an EU 531 strategy for liquefied natural gas and gas storage
Council, the European Economic and Social Committee and the Committee of the Regions on an EU
531
strategy for liquefied natural gas and gas storage. COM(2016) 49 final
LNG fuelled vessels, Ship list -Vessels in operation and vessels on order
- Dnv Gl
DNV GL (2016) LNG fuelled vessels, Ship list -Vessels in operation and vessels on order.
Emerging LNG value chain in the South Baltic Region
- L Gerlitz
- V Paulauskas
Gerlitz L, Paulauskas V (2015) Emerging LNG value chain in the South Baltic Region. MarTech
546
LNG project Final report
MARPOL Annex VI -Prevention of Air Pollution from Ships
- Imo
IMO (2010) MARPOL Annex VI -Prevention of Air Pollution from Ships. International Maritime
549