Designing a Competitive RoRo River-Sea Transport Service

Challenge the future

DelftUniversity ofTechnology

Designing a Competitive RoRo River-Sea Transport ServiceTransporting new passenger vehicles

between the Ruhr area and the United Kingdom

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Contents

• Assignment• The “new” idea

• Elaboration on concept in different Parts

I. Exploration & scopingII. Analysis of current practicesIII. DesignIV. Business case

• Conclusions & recommendations• Discussion

3

The “New” Idea

Direct transport from inland to overseas destination

Positive effects• No intermediate transshipment in a seaport

• Decrease in time and costs

Negative effects• Non optimal solution for transport equipment

• Increase in costs per kilometre• Capacity and service

River Sea Shipping

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Assignment

The initial project description consisted of:

• River sea push barge concept• “Distrivaart” concept• Slow moving retail products• Potential investment parties

TIL 5050 Interdisciplinary Project

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Research approach

Four parts:

Explorartion &

scoping

Anylysis of current

practicesDesign Business

case

6

Exploration & scopingChoice of corridor

Four potential rivers River Rhine through Rotterdam

Three sea directions United Kingdom

Ruhr area – United Kingdom

Explorartion &

scoping

Anylysis of current


case

7

Exploration & scoping

Slow moving retail products analyzed with focus on:• Characteristics• Appearances

Choice of product

Explorartion &

scoping

Anylysis of current


case

8

Exploration & scopingChoice of product

Explorartion &

scoping

Anylysis of current


case

9

Exploration & scopingMain research question

Design a feasible transport concept for transportation of new passenger vehicles

between the United Kingdom and Ruhr-area without transfer in a seaport

Design a feasible transport concept for transportation of new passenger vehicles between the UK and Ruhr-area without transfer in a seaport

Analysis of current practices in transport of

passenger vehicles

PART II

Design of river sea ship and service and matching

with the market

PART III

Operational performance & financial feasibility

PART IV

Explorartion &

scoping

Anylysis of current


case

10

Analysis of current practices

• Transport flows• Modalities• Transport chains

Transport chain with lowest costs per route

Explorartion &

scoping

Anylysis of current


case

11

Analysis of current practicesLowest cost per route

Explorartion &

scoping

Anylysis of current


case

12

Design

• Define possible concepts• Determine feasible concepts• Determine corresponding operational costs

• Vessel (concepts) • Capacity (variants)• Service (logistics and speed)

• Choice of a concept

Goals and results

Explorartion &

scoping

Anylysis of current


case

13

Design

• Requirements• Low damage• Competitive on costs

• Constraints• Legal• Physical• Market

Requirements & constraints

Explorartion &

scoping

Anylysis of current


case

14

DesignDefinition of concepts

Explorartion &

scoping

Anylysis of current


case

15

Design

• 4 concepts• 5 dimension variations for each concept

• Capacity between 546 and 1092 vehicles

• Operational costs are based on fuel consumption • Fixed costs like labour, capital and maintenance from

literature

Preliminary designs

Explorartion &

scoping

Anylysis of current


case

16

Design

Explorartion &

scoping

Anylysis of current


case

Variant Speed (km/h)

9,3 11,1 12,9 14,8 16,7 18,5

1 B B B B A A

2 B B B A A A

3 B A A A A A

4 A A A A A A

5 A A A A A A

Cheapest concepts on river

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Design

Explorartion &

scoping

Anylysis of current


case

Variant Speed (km/h)

18,5 22,2 25,9 29,6 33,3 37

1 A and B

A and B

A and B

A and B

A A

2 A and B

A and B

A and B

A and B

A A

3 A and B

A and B

A and B

A and B

A A

4 A A A A A A

5 A A A A A A

Cheapest concepts on sea

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DesignMatching

Explorartion &

scoping

Anylysis of current


case

OperationalCosts

TerminalLocations

SailingSpeed

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Design

• From Duisburg to London• 2 barges on the river, 2x 1 barge on the sea• 1 sailing each week• Capacity of ~1092 vehicles• Serving 80% of the flow from Eisenach and Bochum

(Opel)

• Costs: € 80.917,- per round trip

Final design

Explorartion &

scoping

Anylysis of current


case

20

DesignFinal design

Explorartion &

scoping

Anylysis of current


case

• Plaatje ,maken

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Design

Nog een mooi plaatje oid

Final design

Explorartion &

scoping

Anylysis of current


case

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Business case

• Determine characteristics of final design• Investigate financial consequences

• Translate costs to market price• Investment• Cash flow, NPV

Goals and results

Explorartion &

scoping

Anylysis of current


case

23

Business caseSWOT

Explorartion &

scoping

Anylysis of current


case

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Business case

• 60% mortgage at 7% interest, 20 years payback period• 40% equity

Investment

Explorartion &

scoping

Anylysis of current


case

River push boat 1x € 700.000,-

Sea push boat 2x € 1.280.000,-

Barge 2x € 6.580.000,-

Total € 16.420.000,-

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Business caseCash flow

Explorartion &

scoping

Anylysis of current


case

• 48 weeks of service per year• ~80% occupancy • Depreciation period of 8 years

• Three different prices per vehicle, based on:• Costs: €92,00 • Broekman: €114,00 • Suggestion: €102,60

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Explorartion &

scoping

Anylysis of current


case

27


Explorartion &

scoping

Anylysis of current


case

28


Explorartion &

scoping

Anylysis of current


case

29

Conclusions and Recommendations

• Risks need to be quantified• Occupancy• Detailed flow

• Transport time needs to be included

Recommendations

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Conclusions and Recommendations

• Feasible for:• Vehicle transport • Between Duisburg and London

• Push barge combination• Transfer of push boat for optimisation

• Price between costs and market example

Conclusions

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Don’t miss the boat on your way home

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Discussion

Documents

Designing a Competitive RoRo River-Sea Transport Service