Cost-benefit analysis of the electrification of the new cruise terminal in La Spezia

Financial and economic evaluation of the shore-side electrification project (cold ironing) in the new cruise terminal in La Spezia

By electrifying ships hoteling activities, the La Spezia port authority aims to prevent diesel combustion from berthing vessels and avoid exhaust emissions and noise in the port areas. The objective of this project is thus to assess the welfare implications of the shore-side electrification project (cold ironing) and evaluate the feasibility of such infrastructure investment from a socio-economic point of view.

Following a cost-benefit analysis approach and based on first-hand information on port traffic flows and infrastructure costs, the analysis estimates the evolution over time of both health benefits and investment and operation costs, providing a monetary quantification of the net social benefits obtained from the electrification of the cruise terminal.

Taking into account relevant developments in the maritime and energy sector, such as the diffusion of natural LNG-fuelled cruise vessels and of renewables in the national energy mix, the evaluation work also provides a comprehensive assessment of the convenience of maritime transport electrification as compared to alternative policy options, and a sound case study about more sustainable approach to coastal policy and infrastructure spending.