Modeling the cost sensitivity of intermodal inland waterway terminals: A scenario based approach: Fid-Bau Portal

Modeling the cost sensitivity of intermodal inland waterway terminals: A scenario based approach

Smid, Martijn / Dekker, Sander / Wiegmans, Bart

Highlights • Cost structure and sensitivity of cost/TEU changes are analyzed. • Terminals with a higher container throughput encounter fewer costs (scale economies). • Cost sensitivities in different scenarios run between approximately 0% and 10%. • Subsidies to small terminals should only be implemented if there is large terminal potential. • Small and medium terminals should quickly grow in size to become cost-efficient.

Abstract Cost characteristics of differently sized inland waterway terminals (IWTs) have not received much scientific attention. This observation is remarkable given the importance of costs in transportation decision-making. Classification of differently sized IWTs and their cost structure will lead to more insight into the container cost per terminal. Therefore, the goal of our research was to determine both the characteristics of the cost structure associated with different inland waterway (IWW) container terminal types and the sensitivity of the system to cost/TEU changes in input and operational conditions. We show that terminals with a higher container throughput encounter fewer costs, and can therefore charge a lower price. Assumed delays of 2h per day on the waterside cause a 4.7–6.6% cost increase per container, mainly caused by extra labor costs. It is also assumed that the changing climate will influence terminal operations and results in extreme water levels (lasting two weeks occurring four times a year) causing a cost increase of 1.0–3.4%. Subsidies can cause cost reductions of 0.3–10.4% depending on the exact form, with the smaller terminals benefiting more because their investment costs are higher relative to operational costs. A subsidy can lower costs by up to 10.4%, but it is questionable whether small and medium terminals will have a lower cost price than the market price, showing that it is important for small and medium terminals to quickly grow in size.