Assessing the Potential of Short Sea Shipping and the Benefits in Terms of External Costs: Application to the Mediterranean Basin

Abstract

The paper aims to investigate short sea shipping services as a competitive, sustainable freight transport system which is able to respond to economic, social and environmental needs. An assessment methodology is proposed which considers an aggregate discrete choice model, simulating the split between the competitive transport alternatives in the Mediterranean basin. The proposed methodology was used to assess the potential of short sea shipping (SSS) and the net benefits deriving from lower external costs in the north-western Mediterranean basin. Two future scenarios are considered: introduction of new SSS services as envisaged by current EU projects and plans, and the introduction of new SSS routes and an increase in frequencies of existing services. Significant results were obtained in terms of shifting freight traffic from the road network as well as external benefits.