Development of Climate Resilient Ports Achieving Viable and Efficient Investments in Landlord Container Terminals Erwanda S
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Development of Climate Resilient Ports Development of Climate Resilient Ports Achieving Viable and Efficient Investments in Landlord Container Terminals Erwanda S. Nugroho Cover Text possibly spanning multiple lines ISBN 000-00-0000-000-0 Delft University of Technology (1).jpg (1).bb Development of Climate Resilient Ports Achieving Viable and Efficient Investments in Landlord Container Terminals By Erwanda S. Nugroho in partial fulfilment of the requirements for the degree of Master of Science in Engineering and Policy Analysis at the Delft University of Technology, to be defended publicly on Monday August 22, 2016 at 2:00 PM. Student Number: 4418972 Chair: Dr. ir. Bert Enserink TU Delft (TPM) First supervisor: Dr. Jill H. Slinger TU Delft (TPM) Second supervisor: Dr. S.T.H. (Servaas) Storm TU Delft (TPM) External supervisors: Dr. ir. J.C.M (Cornelis) van Dorsser TU Delft (CiTG) Dr. ir. Mónica A. Altamirano Deltares Dr. ir. Martijn P.C. de Jong Deltares Disclaimer: The image presented on the cover page is a courtesy of Zenkoku-Kowan An electronic version of this thesis is available at http://repository.tudelft.nl/ . i This page intentionally left blank ii Preface This thesis is the end product of a five-month Master’s thesis project conducted at Delft University of Technology and Deltares, which was initiated to contribute towards development of climate resilient ports. A series of problem explorations at the start of the study showed that a lack of investment in climate adaptation in ports is currently the main barrier to transform ports into climate-proof ones. Therefore, the research aimed to deliver a mechanism for achieving viable and efficient investments in building climate resilient ports. Subsequently, this document is mainly intended for port practitioners who, at some point in the future, will need to adapt their ports to climate change to maintain their ports operational and sustainable. Nevertheless, in terms of writing style and content, this document aims to be conversational, simple and understandable to general public, thus sometimes elaborates more details. In this way, non-port practitioners who are interested in climate finance can also benefit from the outcomes of this research, although they might feel less connected as compared to port practitioners. Using the port sector as a unit of analysis, they could be encouraged to deliberate, debate and resolve the challenge of building climate resilient infrastructures faced by all climate-sensitive sectors worldwide. This document consists of five different but interrelated parts. Part I primarily describes the background, objective, questions and methods of the research. In Part II, climate risks, opportunities and adaptation in ports are elaborated. An assessment matrix to support system-based and integrated evaluation of climate risks and opportunities for container terminals is presented in Chapter 3. A reader with interest in conducting such assessment is highly recommended to visit the chapter. In Part III, a methodological framework for approximating the viable and efficient investment option for adapting a port to climate change is presented. This part is certainly not to be missed, especially by readers who are willing and/or required to invest in climate resilient ports. In Part IV, a discussion of which port stakeholders are responsible for financing the viable and efficient adaptation option in a port is provided. A reader who would like to know how climate risks and responsibilities in a landlord container terminal could be effectively allocated among port stakeholders is encouraged to read this part. Lastly, in Part V, recommendations for achieving viable and efficient investments in climate resilient ports are delivered based on the outcomes of the research. In addition, an executive summary was prepared for those interested in the research but, alas, in hurry. Erwanda S. Nugroho Delft, August 2016 iii This page intentionally left blank iv Acknowledgements The last five months have been one of the most intellectually fruitful periods in my life. As a student who had no mastery of financial analysis and no knowledge of port operations beforehand, completing this rather ambitious Master’s thesis project was a kind of Mount Everest for me to climb. Clearly, I would not have made it without the support of many individuals around me. Therefore, I would like to thank them here. But, first and foremost, I would thank my God, Jesus Christ, for His blessings throughout my research, such that I am able to complete my thesis successfully. Next, I would like to express my deep and sincere gratitude to all of my graduation committee members. I would thank my graduation chairman, Dr. ir. Bert Enserink, for convincing me to take up this Master’s thesis project and his constructive comments. To my first supervisor, Dr. Jill Slinger, for her continuous support and supervision, especially in the beginning of my project, during which I had some difficulties to scope my research and my official start date had to be delayed by a month. Dr. Servaas Storm, my second supervisor, for being present and helpful whenever I needed his assistance with executing the required financial analysis. More importantly, I would like to thank him for his inspiring lectures on Economics, which also motivated me to choose this thesis project. To Dr. ir. Cornelis van Dorsser, for his critical feedback that have enhanced the quality of my Master’s thesis. Dr. ir. Mónica Altamirano, my daily supervisor at Deltares, for her guidance, feedback and suggestions throughout the project. To Dr. ir. Martijn de Jong, for his constructive feedback and support throughout my internship at Deltares. Finally, I would like to thank six of them for allowing me to take time out of their hectic schedules. I hope that this thesis reflects their valuable input well. Afterwards, I would like to thank Mr. Vladimir Stenek, Mr. Alan Duque Perez and Prof. Tiedo Vellinga for their willingness to be interviewed for this project. Their fields of expertise and knowledge were of great importance for the success of the two case studies presented in this thesis. I would also like to thank my colleagues and fellow interns at Deltares for making me feel so welcome in the office. In particular, I thank Ruben van Dijk, Judith Mol and Margarita Tsavdaroglou for all discussions about our Master’s thesis projects, which are clearly interconnected. I hope that all of them can gain benefits from this thesis. I also want to thank Arvid de Rijck, Clotilde Peyroche d’Arnaud, Hugo de Rijke and other fellow interns for our coffee breaks and cake sessions. I am also grateful to all of my friends at the university, with whom I share my doubts, sadness, happiness, jokes and future plans. I thank all of my Engineering and Policy Analysis classmates, who I met and collaborated to gain knowledge of the world of policy analysis. In particular, I would like to thank Buse Tali, María José Galeano Galván and Andita Rahmi Faradina for sharing their experiences about their Master’s thesis projects, which have somehow strengthened me through all tough phases of my thesis. Finally, I want to give thanks to all of my family members who have supported me during my two years of study in the Netherlands. I would specially express my gratitude to my parents, who successfully persuaded me to pursue a post-graduate degree. Erwanda S. Nugroho Delft, August 2016 v This page intentionally left blank vi Table of Contents Preface ...................................................................................................................................................................................... iii Acknowledgements..................................................................................................................................................................... v Table of Contents ..................................................................................................................................................................... vii List of Figures ........................................................................................................................................................................... ix List of Tables ............................................................................................................................................................................ xi Executive Summary ................................................................................................................................................................ xiii Part I: Introduction ...................................................................................................................................................................... 1 Chapter 1 - Thesis Definition ..................................................................................................................................................... 2 1.1 Research Background .................................................................................................................................................... 2 1.2 Research Problems ........................................................................................................................................................ 3 1.3 Research Objectives and Questions .............................................................................................................................. 5 1.4 Research Scope ............................................................................................................................................................