Note on the source. This source should be read with caution: it may be funded by the sector, a draft or a thesis, or rely on self-reported or modelled data. See the limitations below.
The question
How does digitalisation enable or accompany changes in the business models of port authorities in RoPax ports (cargo and passenger ferries)?
The method
Multi-site case study of six anonymised RoPax ports in four Northern European countries: a workshop and semi-structured interviews with port authority managers (August 2022 - April 2023) plus secondary data; qualitative content analysis with an abductive approach, based on the four elements of the business model (value proposition, profit formula, key resources and key processes).
What the study finds
- The authors group the factors pushing ports to change their business model into three families: environmental, economic and social. All six ports cite reducing the environmental impact of shipping and the importance of passengers as customers; five of six point to port-city integration.
- According to several port authorities, cargo tends to move out of cities while passenger traffic stays in the centres, close to attractions; to make better use of space, many are trying to physically separate passenger services from cargo services.
- Some port authorities are becoming owners of the new passenger terminals. Even though passengers are not formally their customers, they feel jointly responsible for service quality, because travellers expect a smooth journey whoever runs each step.
- The ports examined often receive cruise ships only in certain seasons; several port authorities also see their terminals as possible event spaces in the quieter months.
- Digital investments, completed or planned, fall into four areas: data sharing between organisations, reducing environmental impact, infrastructure management, and traffic management amid growing cities (with security as a further area). The authors found no digital solutions supporting new services or activities for the port authority.
- The authors judge digitalisation to be fragmented: solutions born from individual short-term projects, without a strategic vision. Port authorities prefer gradual adjustments to the traditional 'landlord' model, and several voice doubts about the return on digital investment.
The study shows that port authorities located near city centres are starting to treat passengers and the city as stakeholders, not just shipping lines and terminal operators. It warns, however, that without a strategy digitalisation may remain a set of unconnected projects yielding few new services. It concerns ferry (RoPax) ports, with only marginal references to cruises.
Limitations
Six anonymous ports from a single geographical area (Northern Europe), one or a few interviewees per port, qualitative analysis without impact measures; cruise traffic is marginal in the study.
Chen, Y., Tsvetkova, A., Edelman, K., Wahlström, I., Heikkilä, M., Hellström, M. (year n/a). How does Digitalisation Transform Business Models in RoPax Ports? A Multi-Site Study of Port Authorities. Journal of International Technology and Information Management, Volume 32 (International Information Management Association), Manuscript 1583.
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