Shore-power capacity allocation in a container shipping network under ships’ strategic behaviors

Abstract

Shore power (SP) is an effective way to cut carbon emissions at ports by replacing fuel oil for docked ships. The adoption of SP by ships hinges on the onboard transformer setup cost and the cost saving from SP utilization in comparison with fuel oil. The allocation of SP capacity at ports influences the availability of SP-equipped berths and, along with conventional berths, incurs potential service delays. Misallocation can actually increase port emissions. This paper addresses the SP capacity allocation problem in a general container shipping network with multiple ports and a ship fleet. The service congestion or capacity-dependent waiting time at berths is considered, which results in strategic choices or choice equilibrium of ships on SP adoption. The emission quantity at each port is affected by the choice equilibrium of ships. For the benchmark case with a single port, we analytically identify a threshold SP capacity above which emissions decrease, below which a counterintuitive increase occurs. For the general shipping network, assuming government covers transformer setup costs, we develop an exact method to determine the critical level for each port to ensure emission reductions. A case study based on the Yangtze River is conducted to illustrate the analytical results.