Business models for dedicated container freight on Swedish inland waterways
2020 (English)In: Research in Transportation Business and Management (RTBM), ISSN 2210-5395, E-ISSN 2210-5409, Vol. 35, article id 100466Article in journal (Refereed) Published
Abstract [en]
Modal shift from land to water is prioritized in transport policies throughout Europe. As indicated in earlier research on intermodal shift, new business models are needed for intermodal services to get a foothold in challenging markets. The purpose of the paper is to analyze business model development for inland waterway transport (IWT) in order to identify principal characteristics that support the switch from land to water. This paper reports on the development, and testing, of new business models for IWT services targeting containerized goods in West Sweden. The research is based on case studies of two recent entrepreneurial attempts to establish such services. From the case studies three business models were developed for stakeholders to evaluate. The tests were conducted through a stakeholder oriented multi-actor multi-criteria analysis (MAMCA). The results revealed strengths and weaknesses with the business models that have implications for the Swedish setting as well as general support for intermodal shift. The paper ends by discussing how stakeholders can support the development of viable business models for IWT.
Place, publisher, year, edition, pages
Elsevier Ltd , 2020. Vol. 35, article id 100466
Keywords [en]
Business models, Inland water transport, Modal shift
National Category
Mechanical Engineering
Identifiers
URN: urn:nbn:se:ri:diva-71870DOI: 10.1016/j.rtbm.2020.100466Scopus ID: 2-s2.0-85082494573OAI: oai:DiVA.org:ri-71870DiVA, id: diva2:1839213
Note
Funding details: VINNOVA; Funding details: Agentschap voor Innovatie door Wetenschap en Technologie, IWT; Funding text 1: This research was funded through the #IWTS 2.0 project by VINNOVA (Sweden's innovation agency) , Interreg North Sea Region, and Region West Sweden.; Funding text 2: Second, the cases indicate the need for patience and the potential for other types of non-monetary support for IWT from stakeholders. Business model development for IWT is complex and time consuming, yet the ventures needed even more time to work up the volumes necessary in order to achieve the break-even point. The two cases represent different approaches to accumulating such volumes. In the V?nern case, the balancing of the flow was crucial, and going ahead without first securing enough volumes in both directions was considered difficult, if not impossible. In the River Route case, the focus was on attracting a base flow in one direction, and once the customers were satisfied with the service, others would join. These differences were partially explained by the relationships with the investors and partially by how the business model was constructed. However, the different approaches had implications for the potential to establish and develop a network that supports the further growth of the services, such as through bundling or by customers moving a larger share of their flows of goods to IWT. Stakeholders thus need to be patient, informed, and resourceful in order to keep development going. Investors play a key role, but other actors, such as ports and customers, can support the entrepreneur in making the business model viable by making commitments that are not costly in financial terms. Signing a letter of intent and having dialogues with the port's own customers about how the port will function with IWT are examples of activities that may make potential customers and other stakeholders more positive toward IWT.This research was funded through the #IWTS 2.0 project by VINNOVA (Sweden's innovation agency), Interreg North Sea Region, and Region West Sweden.
2024-02-202024-02-202024-02-20Bibliographically approved