MarRINav: Cost Benefit Analysis – April 2020

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Sector:Space
Client:European Space Agency (ESA)
Published: 17 April, 2020
Document type:LE publication | Report 
Tagged: cost benefit analysis quantitative analysis Space

The MarRINav project explores the vulnerabilities of GNSS as a position, navigation and timing solution. The project, funded by the European Space Agency and led by Blue Economy solutions company NLA International Ltd, is also researching systems complementary to GNSS that add layers of integrity and resilience. London Economics’ contribution consisted in analysing the economic rationale for investment in a resilient system-of-systems.

The CBA considers the central economic case of maritime transportation and assumes that one 5-day area-wide outage of GNSS will take place within the next 10 years, with certainty. The analysis focusses on container ships only. The economic assumption is drawn upon a selection of 10 major ports in the UK which handle 90.5% of the economic value attributable to maritime transport of containers. The CBA evaluates the net present value of the MarRINav system-of-systems to be positive and equal to £221m. This is equivalent to a benefit-cost-ratio of 2.2.

The reports are available to download here.