Evaluation of liquefied natural gas bunkering port selection

A-Rom Kim, Young-Joon Seo, Dong-Wook Kwak

Research output: Chapter in Book/Report/Conference proceedingConference proceeding

Abstract

Purpose: Given environment regulations on emissions from ships, shipping companies have sought alternative fuel ships, such as LNG-powered vessels, which may give rise to growth in liquefied natural gas (LNG) bunkering ports. Because demand for LNG-powered vessels is expected to increase, it is worth assessing the factors that lead to the selection of LNG bunkering ports in LNG bunkering industries.
Research Approach: This paper employs a second-stage empirical analysis approach that selects criteria for shipping companies’ selection of a LNG bunkering port through a literature review and interviews, and then adopts a fuzzy-AHP methodology to reveal the priority of the LNG bunkering port selection criteria in LNG bunkering decision making.
Findings and Originality: The results indicate that, among the 20 sub-criteria of LNG bunkering port selection by shipping companies, geographical location ranked first as the most competitive factor, followed by LNG bunkering safety, experienced human resources, and relationship among stakeholders. In reality, shipping companies normally obtain LNG bunkering services at the North Sea and the Baltic Sea given the ECAs. In addition, in these regions, LNG powered vessels are actively being operated and LNG bunkering ports are the most distributed.
Research Impact: Because demand for LNG powered vessels is expected to increase, assessing the factors of LNG bunkering port selection in LNG bunkering industries is worthwhile. Furthermore, a dearth of academic research exists in the field of LNG bunkering, thus presenting a plausible reason for venturing deeper into the relatively uncharted field of LNG bunkering research. This paper represents a first step in exploring LNG bunkering port selection.
Practical Impact: This paper offers invaluable policy implications for governments and PAs that plan to build and operate LNG bunkering ports in the near future. The results of the analysis enable them to: (1) more clearly understand the needs of shipping companies regarding LNG bunkering ports, (2) determine how to provide efficient LNG bunkering services, and (3) make prompt adjustments to meet their development strategies. The results also enable LNG bunkering port managers to: (1) grasp the present strengths and weaknesses of their ports and (2) help them establish future strategies to improve the competitiveness of their ports.
Original languageEnglish
Title of host publicationAnnual Logistics Research Network Conference 2018
PublisherChartered Institute Of Logistics And Transport
Pages377-383
Number of pages7
Publication statusPublished - 2018
EventAnnual Logistics Research Network Conference 2018 - Plymouth University, Plymouth, United Kingdom
Duration: 5 Sep 20187 Sep 2018
Conference number: 23
https://ciltuk.org.uk/lrn2018

Conference

ConferenceAnnual Logistics Research Network Conference 2018
CountryUnited Kingdom
CityPlymouth
Period5/09/187/09/18
Internet address

Keywords

  • LNG
  • LNG bunkering
  • seaports
  • port selection
  • fuzzy-AHP

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