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Journal of Ocean and Coastal Economics

Document Type

Research Article

Abstract

Reductions in the rates of domestic allisions, collisions and groundings (ACGs) are the result of technological advances as well as implementation of best practices in the maritime industry. This study estimates long-term gross benefits derived from expanded implementation of the National Oceanic and Atmospheric Administration’s Physical Oceanographic Real-Time System (PORTS®) with respect to reductions in ACG rates in the United States. Following PORTS® installations that provided expanded coverage of U.S. ports and adjoining areas, concomitant decreases in accident rates occurred. While previous estimates suggested that between twenty and sixty percent of grounding accident reductions were due to PORTS®, current research suggests that up to half of ACG rate reductions were due to such installations. Annual gross benefits resulting from lowered ACG rates at PORTS® locations installed through 2016 were estimated to approach $21 million. Over the estimated ten-year economic life of PORTS® instruments, present PORTS® installations could produce a present value saving of $180 million. If expanded to an additional 23 ports where economic justification might be made, up to $10 million could be saved. Over ten years this would equate to over $84 million.

Creative Commons License

Creative Commons Attribution 4.0 License
This work is licensed under a Creative Commons Attribution 4.0 License.

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