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ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS Sustainable Aspects of Short Sea Shipping: A Case Study of Europe Samsul Islam University of Auckland, New Zealand 12 Grafton Road, School of Business, University of Auckland Paul Leinberg University of Gothenborg, Sweden Viktoriagatan 13, Goteborg, Sweden Rezbin Nahar Southeast University, Bangladesh House# 64, Road# 18, Block # B, Banani, Dhaka, Bangladesh JANURAY 2011 VOL 2, NO 9 Abstract There is a gradual growth and participation of containers in the world-wide trade, both in the USA and the EU, which created some sort of capacity problems in the major ports. Moreover, the truck-dominated transportation system caused a worse-situation on the important EU‘s transportation corridors. But short sea shipping (SSS) can provide the best alternative using the inland and coastal waterways. Moreover, SSS can provide many extra helps for the environment, the economy and the society as a whole. European Commission actively supports SSS as an alternative, environmentally friendly mode of transportation among the others. But there are obstacles, administrative barriers, and challenges that should be addressed and solved immediately. The commercial benefits of SSS should be presented to the shippers and ship-owners to attract them to this beneficial mode of transportation. This paper reviews the strengths, weakness, opportunities and threats (SWOT analysis) of SSS in the context of EU. Similarly, it figures out the numerical benefits derived from adopting the EU as an alternative of road transportation. Finally, it proposes unique advantages for the growth of SSS in EU than USA. Key Words: Short Sea Shipping, Sustainability, European Union, Emission Listed in ULRICH’S COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 428
ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS 1. Introduction 1.1 Background JANURAY 2011 VOL 2, NO 9 During the last decades of the 20 th century, it is agreed that we are carrying out our economic activities in such a way that is harmful for the natural environment. It is also recognized that the methods being used can be less harmful and more sustainable. New concepts came in existence like ―Sustainable Forestry‖, ―Sustainable Manufacturing‖, ―Sustainable Agriculture‖, ―Sustainable Tourism‖ and ―Sustainable Transport‖. ―Sustainable Transport‖ concept is important because most of the vehicles use ―Petroleum‖ rather than other types of energy. The major question at this point is: What is the future demand for this fuel and will the planet be able to supply it? The vessels and vehicles that move freight today are powered by petroleum; this is true for 95% of the freight movements. So, transport systems are nonsustainable because of ―Fuel‖ that is finite and nonrenewable (Leinbach and Capineri, 2007). Moreover, current transport system is placing emissions in the atmosphere that will eventually have impacts on the global climate. The impacts have already begun. The negative impacts of these emissions, mainly on the human body, must be viewed as a significant problem that can‘t be allowed. Transport system is becoming more non-sustainable (Leinbach and Capineri, 2007). Additionally, it is true that a transport system that kills users is not sustainable. It is found that world‘s motor vehicle fleet is responsible for nearly a million fatalities each year and almost 70 million injuries. Forecast of future fatalities for the next years are beyond comprehension. Policy makers don‘t want to include these dimensions as indicators (Leinbach and Capineri, 2007). Energy consumed is equivalent to fuel consumed and emission are a function of fuel consumed (it also depends on speed and type of vehicle), it is apparent that from an air quality and global climate views motor carriers should be used in the least cases in comparison with waterborne and rail transport. Moreover, in this case, in addition to the emissions, we have accidents, excessive fuel use and congestion. The port-to-port moves are perhaps the most suitable because waterborne modes tend to pollute the environment the least (Leinbach and Capineri, 2007). As the below table shows that short sea shipping tends to emit the smallest grams of emissions for most of the pollutants of interest today. The exception is the sulfur dioxide (SO2) which is higher in such vessels because of high sulfur content of the fuel used for that mode. But, if we use other modes to move the freight, they would pollute more (Leinbach and Capineri, 2007). Mode CO HC PM NOx SO2 CO2 Road .479 .227 .078 .978 .031 98.301 Rail .196 .098 .027 .472 .036 28.338 Short-sea Shipping .036 .012 .006 .311 .290 15.450 Ocean Shipping .048 .016 .0483 .499 N.A. N.A. Table 1: Emissions (in grams/ton kilometer) for freight modes Source: Commission of the European Communities (1999), US Maritime Administration Cited By Leinbach and Capineri (2007) COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 429
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