Untangling decision tree and real options analyses: a public infrastructure case study dealing with political decisions, structural integrity and price uncertainty

Managerial flexibility in infrastructure investment and replacement decisions adds value. Real options analysis (ROA) captures this value under uncertain market prices. The concept of ROA is that future unfavourable payoffs can be deferred as soon as more information about market prices becomes available. The popularity of ROA is seen in a...

Towards sustainable infrastructure with planned adaptation

In the present turbulent environment, adaptability and robustness belong under the overarching definition of sustainability. Sustainable infrastructures should not only achieve economic, environmental, and social objectives, but should be robust and adaptable under uncertainty. This paper examines the current guidelines for port development and...

The Flexible Port

Ports are beset with many uncertainties about their futures. They are confronted with new demands in terms of functions and scales, new external constraints, and changed expectations. The inability to adequately meet these demands can mean costly adaptations for a port, or loss of cargo and competitive position. A plausible reason is that the...