Multi Criteria Decision Analysis (MCDA) in the Norwegian Maritime Sector: Adding Environmental Criteria in Maritime Decision Support Systems

Abstract

There are several current challenges to the competitiveness of the Norwegian maritime sector. The short sea shipping industry is facing tougher requirements on the environmental performance of vessel technologies, mainly from the quality and type of fuels utilized. Other challenges are high production costs and increasing global competition. For Norwegian ship owners, an additional challenge is the increase in road cargo transportation. A technology shift in the maritime sector may be necessary to meet these challenges. In this thesis, we argue that in order to make this shift happen, better decision support tools (DST) must be implemented.In this thesis, a Multi-criteria Decision Analysis (MCDA) model has been made for the Norwegian maritime sector. The Analytic Hierarchy Process (AHP) has been applied to a case study at a Norwegian ship owner, based on a vessel investment at Egil Ulvan Rederi AS. In this study, marine diesel oil (MDO) and liquefied natural gas (LNG) have been identified as alternatives. To obtain the most preferred alternative, the ship owner s preferences for the following criteria were identified; air emissions, cost, technical performance and risk. The results shows that LNG was the most preferred alternative. This thesis proposes a systematic approach combining MCDA and Systems Engineering (SE). The results indicate the importance of including environment as a parameter in maritime decision-making, and may be especially important in areas subject to strict regulations on ship exhausts. It also indicates that MCDA, and AHP, can be used to aid decision makers in structuring their priorities in a decision-making context.