Periscope Network Market Opportunity Report - Offshore Logistic Hubs

The transition of the maritime and offshore industries toward a sustainable “Blue Growth” future is driven by incentives to unlock new growth areas, develop and apply new technologies, and increase productivity. The development and utilization of offshore logistics hubs provides an opportunity to accomplish these goals. This report provides a summary on the prospects for developing offshore logistics hubs and their evaluation as opportunities for the maritime and offshore industries. 

The rapid development in offshore infrastructure and the trend toward the electrification of the seas has provided a context for growth, and new infrastructure can support this development— both in time and cost savings. They can utilize the vast space available on the sea that remains sub- optimized. Developing new offshore infrastructure will challenge human ingenuity and accelerate innovation, as well as enable the establishment of new market opportunities and exports.

As global trade increases, ports need to adapt to cater for this increasing volume. This can be done through offshore logistics hubs capable of functioning as offshore port terminals. Such a hub can relieve the growing pressure on current ports struggling to keep up with the increases in container traffic, by rerouting containers through the use of smaller feeder vessels. This will circumvent the current practice that sees large container ships stopping several times to discharge containers along a linear route and reduce the traffic in traditional ports.

The question of the viability of offshore hubs is tested under two different assumptions, with and without a renewable energy component. Aggregating answers from 50 respondents, offshore logistics hubs will emerge in a decade; if the logistics hubs are to be powered fully by renewable energy, this could require an additional half-decade. Respondents rated this opportunity at 3,04/5 for its business potential. However, if renewable energy powers the hub, ratings on business potential increase to 3,54/5 increasing its potential by 16%.

So, while the both solutions are considered to yield business opportunities, the renewable energy powered logistics hubs are predicted to outperform non-renewable powered offshore logistic hubs. However, this increase in business potential comes at the cost of expected prolongations in the time horizon of development.

For further information, you may find the report here.

By Anna Lygre Solvang