Precision Navigation: A Socio-Economic Study Quantifying the Benefits of Implementation

NOAA is developing a Precision Navigation technology platform that will synthesize the intelligence NOAA currently holds on physical and environmental conditions at ports, including observational, forecast, and geospatial information. It gives mariners access to these resources through a single, streamlined source, helping them to identify the safest and quickest route through waterways to make it safely to port.

NOAA contracted with the Eastern Research Group (ERG), Inc. to conduct a socio-economic study for Precision Navigation to 1) identify ports that could most benefit from this technology, 2) develop a valuation methodology and benefit-cost calculator for estimating the benefits of implementing Precision Navigation at a port, and 3) implement this methodology at the ports of the Lower Mississippi River and the ports of New York/New Jersey.

To prioritize which ports would benefit most from Precision Navigation, ERG generated port statistics such as tonnage, vessel calls by draft, allisions, collisions, and groundings, which correlate to Precision Navigation’s potential value at a port. For example, a port that has a significant amount of allisions, collisions, and groundings could benefit more from the increased navigational safety that Precision Navigation provides compared to a port with very few annual accidents.

ERG then developed a methodology to estimate the annual dollar benefit that Precision Navigation could provide to a specific port. This methodology focused on the benefits of increased safety and increased vessel loading/reduced operating costs from Precision Navigation. ERG then implemented the methodology for the ports of the Lower Mississippi River and the ports of New York/New Jersey.

ERG will present our findings, including our port prioritization list, methodology for estimating dollar savings from Precision Navigation’s benefits, the results of the implementation for the ports of the Lower Mississippi River and the port of New York/New Jersey, and lessons learned from the study to be used for future socio-economic studies and future work related to Precision Navigation.