Port investment

Abstract

This study supports strategic planning of a node in a transportation network. It contributes to this by the development of a methodology for planning of port capacity in which port-commercial and public interests are integrated. The focus is the reaction of a single port on a change in the transportation network. A scenario for such change, which has been worked out, is the entry of new routes via a competing port in addition to expected demand growth. The proposed methodology is based on analysis with a partial equilibrium model. This modeling approach building on partial approaches for network design, capacity expansion, transportation modeling and investment financing addresses the simultaneous solution of determining 1) the optimal port expansion size, and 2) the investment recovery period. An application has been carried out to a hypothetical expansion of Rotterdam port to demonstrate the methodology and to illustrate trade offs in a ports investment planning.