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Evaluating the Benefits of Floating Container Terminals in Maritime Shipping: A Sustainability Perspective Using Facility Location Models

Muntahin, Maria LU and Palosaari, Jori LU (2024) SMMM40 20241
Department of Service Studies
Abstract
Study purpose: This study explores how Floating Container Terminals (FCTs) located in the North and Baltic Seas can support the maritime shipping industry's growth while promoting sustainability. As freight transportation volumes rise and sustainability regulations tighten, ports face increasing demands to accommodate Ultra-Large Container Vessels (ULCVs) in an environmentally responsible manner. Traditional port expansion is costly and often requires extensive land use and environmentally disruptive dredging. In contrast, FCTs offer an innovative
offshore solution capable of unloading ULCVs and transferring cargo to feeder vessels bound for mainland ports without additional mainland infrastructure or dredging. This study evaluates the... (More)
Study purpose: This study explores how Floating Container Terminals (FCTs) located in the North and Baltic Seas can support the maritime shipping industry's growth while promoting sustainability. As freight transportation volumes rise and sustainability regulations tighten, ports face increasing demands to accommodate Ultra-Large Container Vessels (ULCVs) in an environmentally responsible manner. Traditional port expansion is costly and often requires extensive land use and environmentally disruptive dredging. In contrast, FCTs offer an innovative
offshore solution capable of unloading ULCVs and transferring cargo to feeder vessels bound for mainland ports without additional mainland infrastructure or dredging. This study evaluates the potential of FCTs to meet industry demands sustainably and efficiently.
Methodology: This quantitative study applies data-driven methods to identify the optimal location for a Floating Container Terminal (FCT) in the North and Baltic Seas. Using the Facility Location Problem (FLP) framework, the study analyses relevant data, including shipping routes and container transport volumes. The FLP approach facilitates the selection of an ideal subset of potential locations from a predefined set of mainland ports and prospective FCT sites. By integrating these data points, the study seeks to pinpoint the most strategic FCT location to enhance
logistical efficiency across these maritime regions.

Findings: This study's findings are derived from seven scenarios and network configurations using the Facility Location Problem (FLP). The findings predicted that appropriate location and FCT capacity would be needed to achieve economically optimal solutions. Additionally, vessel fleet composition contributes significantly to environmental sustainability. FCT implementation has been shown to lower carbon emissions, benefit local communities, and contribute to broader regional sustainability goals.
Implications: Practically, the study demonstrates cost and carbon reductions in transshipment by integrating FCTs. Theoretically, this research advances the literature by providing predictive models and addressing a gap in optimal FCT location selection. Additionally, at the policy level, the study underscores the need for regulatory frameworks to safeguard the professionals working
on FCTs and the associated investments. (Less)
Please use this url to cite or link to this publication:
author
Muntahin, Maria LU and Palosaari, Jori LU
supervisor
organization
course
SMMM40 20241
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Maritime shipping, Floating Container Terminal, Ports, Terminals, Containers, Triple Bottom Line, Sustainability.
language
English
id
9185297
date added to LUP
2025-02-17 08:54:41
date last changed
2025-02-17 08:54:41
@misc{9185297,
  abstract     = {{Study purpose: This study explores how Floating Container Terminals (FCTs) located in the North and Baltic Seas can support the maritime shipping industry's growth while promoting sustainability. As freight transportation volumes rise and sustainability regulations tighten, ports face increasing demands to accommodate Ultra-Large Container Vessels (ULCVs) in an environmentally responsible manner. Traditional port expansion is costly and often requires extensive land use and environmentally disruptive dredging. In contrast, FCTs offer an innovative 
offshore solution capable of unloading ULCVs and transferring cargo to feeder vessels bound for mainland ports without additional mainland infrastructure or dredging. This study evaluates the potential of FCTs to meet industry demands sustainably and efficiently. 
Methodology: This quantitative study applies data-driven methods to identify the optimal location for a Floating Container Terminal (FCT) in the North and Baltic Seas. Using the Facility Location Problem (FLP) framework, the study analyses relevant data, including shipping routes and container transport volumes. The FLP approach facilitates the selection of an ideal subset of potential locations from a predefined set of mainland ports and prospective FCT sites. By integrating these data points, the study seeks to pinpoint the most strategic FCT location to enhance 
logistical efficiency across these maritime regions. 

Findings: This study's findings are derived from seven scenarios and network configurations using the Facility Location Problem (FLP). The findings predicted that appropriate location and FCT capacity would be needed to achieve economically optimal solutions. Additionally, vessel fleet composition contributes significantly to environmental sustainability. FCT implementation has been shown to lower carbon emissions, benefit local communities, and contribute to broader regional sustainability goals. 
Implications: Practically, the study demonstrates cost and carbon reductions in transshipment by integrating FCTs. Theoretically, this research advances the literature by providing predictive models and addressing a gap in optimal FCT location selection. Additionally, at the policy level, the study underscores the need for regulatory frameworks to safeguard the professionals working 
on FCTs and the associated investments.}},
  author       = {{Muntahin, Maria and Palosaari, Jori}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Evaluating the Benefits of Floating Container Terminals in Maritime Shipping: A Sustainability Perspective Using Facility Location Models}},
  year         = {{2024}},
}