Designing a Competitive RoRo River-Sea Transport Service

1. Designing a Competitive RoRo River-Sea Transport Service Transporting new passenger vehicles between the Ruhr area and the United Kingdom

2. Contents Assignment The “new” idea Elaboration on concept in different Parts Exploration & scoping Analysis of current practices Design Business case Conclusions & recommendations Discussion

3. The “New” Idea River Sea Shipping Direct transportfrom 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

4. Assignment TIL 5050 Interdisciplinary Project The initial project description consisted of: • River sea push barge concept • “Distrivaart” concept • Slow moving retail products • Potential investment parties

5. Research approach Four parts:

6. Exploration & scoping Choice of corridor Four potential rivers •  River Rhine through Rotterdam • Three sea directions •  United Kingdom • Ruhr area – United Kingdom

7. Exploration & scoping Choice of product Slow moving retail products analyzed with focus on: • Characteristics • Appearances

8. Exploration & scoping Choice of product

9. Exploration & scoping Main 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

10. Analysis of current practices • Transport flows • Modalities • Transport chains Transport chain with lowest costs per route

11. Analysis of current practices Lowest cost per route

12. Design Goals and results • Define possible concepts • Determine feasible concepts • Determine corresponding operational costs • Vessel (concepts) • Capacity (variants) • Service (logistics and speed) • Choice of a concept

13. Design Requirements & constraints • Requirements • Low damage • Competitive on costs • Constraints • Legal • Physical • Market

14. Design Definition of concepts

15. Design Preliminary designs • 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

16. Design Cheapest concepts on river

17. Design Cheapest concepts on sea

18. Design Matching

19. Design Final 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

20. Design Final design • Plaatje ,maken

21. Design Final design Nogeenmooiplaatjeoid

22. Business case Goals and results • Determine characteristics of final design • Investigate financial consequences • Translate costs to market price • Investment • Cash flow, NPV

23. Business case SWOT

24. Business case Investment • 60% mortgage at 7% interest, 20 years payback period • 40% equity

25. Business case Cash flow • 48 weeks of service per year • ~80% occupancy • Depreciationperiod of 8 years • Three different prices per vehicle, basedon: • Costs: €92,00 • Broekman: €114,00 • Suggestion: €102,60

26. Business case Cash flow

27. Business case Cash flow

28. Business case Cash flow

29. Conclusions and Recommendations Recommendations • Risks need to be quantified • Occupancy • Detailed flow • Transport time needs to be included

30. Conclusions and Recommendations Conclusions • Feasible for: • Vehicle transport • Between Duisburg and London • Push barge combination • Transfer of push boat for optimisation • Price between costs and market example

31. Don’t miss the boat on your way home

32. Discussion