Project overview
Awarded £10,000 from the SBS HEIF Innovation Fund 2024/25
Our project aims to develop a Dynamic and Sustainable Vehicle Booking System (DS-VBS) Pricing for port logistics companies, incorporating CO2 reduction factors based on truck and container types, as well as real-time environmental changes such as weather, traffic congestion and other external factors. This will allow our proposed VBS to adjust to these variables dynamically, optimising both business operations and positive environmental impact.
In so doing, our approach combines both qualitative and quantitative research methods. The quantitative aspect focuses on using proprietary data from a case company to create a CO2-based dynamic pricing system, which optimises both operational efficiency and environmental sustainability. The qualitative method involves engaging with the case company as well as industry stakeholders through interviews, focus group discussions (FGDs), and conference participation to ensure the proposed VBS is both practical and academically robust.
We are currently collaborating with DP World Southampton, a global logistics leader operating in over 75 countries, to design this pricing architecture. DP World Southampton has invested around £2 billion in the UK over the past decade and handles 3.6 million twenty-foot equivalent units (TEUs) of cargo. This partnership provides us with unique access to the necessary data and IT infrastructure to ensure the successful development of the VBS pricing model.
Most existing VBS pricing models are static and have yet to incorporate environmental issues, including DP World Southampton’s system, which charges differently based on time slots: free during off-peak hours, a small fee during peak times, and significantly higher fees on weekends. DP World Southampton has expressed interest in transitioning to a more dynamic and green pricing structure that encourages off-peak bookings, reduces waiting times, and addresses no-shows. Currently, truckers who wait over 60 minutes receive a refund, while penalties apply for no-shows.
The impact of our case is substantial and, potentially, strengthening our SBC and AACSB accreditations. The case company draws a significant portion of truck traffic in and out of Southampton, making the roundabout and roads near DP World some of the most polluted areas in the county. DP World-related traffic accounts for the majority of container movements from the Midlands and the South of England. If our Vehicle Booking System (VBS) is successful, it could reduce emissions not only in Southampton but also throughout the Southeast of England. As truck emissions are one of the largest contributors to pollution in the UK, the sustainability potential of this project is considerable for the logistics and container transportation industry.
By optimising booking times and reducing congestion, the VBS will lower CO2 emissions from heavy-duty vehicles, which are the second-largest contributors to transportation-related greenhouse gas emissions in the UK (Statista, 2024). This aligns with the UK's net-zero targets for 2050 and sets an example for global logistics companies to adopt greener practices.
The research impact has been discussed with the Research and Enterprise Manager of the Faculty of Social Sciences, as well as the Impact Case Champion at Southampton Business School. Both have expressed interest in developing this as a potential impact case study, contingent upon its successful completion by the next REF submission.
Our project aims to facilitate knowledge exchange and enterprise by delivering significant impact for both business and the environment. The project’s scope extends beyond developing a pricing system. If DP World Southampton implements the new Vehicle Booking System (VBS) model, it will serve as a pilot for broader commercial applications. A series of workshops and conference presentations will support this process. The commercial aspect is reinforced by having a case company to test our proposal, and if successful, this could lead to wider market adoption, contributing to the logistics industry’s global sustainability goals. Additionally, the Principal Investigator (PI) is initiating a Knowledge Transfer Partnership (KTP) application to enable knowledge exchange in environmental management accounting with the case company.
To connect with stakeholders across Southampton this project can make use of the Port-city forum created by the University’s IPACT project (Infrastructure for port-cities and coastal towns) https://ipact.org.uk/2024/05/16/southampton-port-city-forum/. This forum contains a diverse range of already engaged local stakeholders, such as ABP, DP World, Solent Stevedores, Carnival Cruises, Southampton City Council, Solent Forum, Red Funnel, Go South Coast Ltd, SMMI, Meachers Global Logistics, South Western Railway, Old Town Community Forum, Ridge and Partners, Channel Coastal observatory, AGS Airports, EBP South, Southampton Voluntary Services, Solent Partners and The University of Southampton. This network will enable widespread knowledge exchange across Southampton and help identify further opportunities in collaboration with stakeholders, as well as assisting in attracting the stakeholders this project aims to engage with via workshops.
Finally, this project represents a valuable knowledge exchange. DP World Southampton is leveraging our expertise in developing dynamic VBS pricing, and the insights gained will also be integrated into our Business School curriculum. With new Shipping Finance and Sustainable Finance programmes launching in 2025, students will have the opportunity to learn from this real-world case study, further enhancing the impact of our research.
Our project aims to develop a Dynamic and Sustainable Vehicle Booking System (DS-VBS) Pricing for port logistics companies, incorporating CO2 reduction factors based on truck and container types, as well as real-time environmental changes such as weather, traffic congestion and other external factors. This will allow our proposed VBS to adjust to these variables dynamically, optimising both business operations and positive environmental impact.
In so doing, our approach combines both qualitative and quantitative research methods. The quantitative aspect focuses on using proprietary data from a case company to create a CO2-based dynamic pricing system, which optimises both operational efficiency and environmental sustainability. The qualitative method involves engaging with the case company as well as industry stakeholders through interviews, focus group discussions (FGDs), and conference participation to ensure the proposed VBS is both practical and academically robust.
We are currently collaborating with DP World Southampton, a global logistics leader operating in over 75 countries, to design this pricing architecture. DP World Southampton has invested around £2 billion in the UK over the past decade and handles 3.6 million twenty-foot equivalent units (TEUs) of cargo. This partnership provides us with unique access to the necessary data and IT infrastructure to ensure the successful development of the VBS pricing model.
Most existing VBS pricing models are static and have yet to incorporate environmental issues, including DP World Southampton’s system, which charges differently based on time slots: free during off-peak hours, a small fee during peak times, and significantly higher fees on weekends. DP World Southampton has expressed interest in transitioning to a more dynamic and green pricing structure that encourages off-peak bookings, reduces waiting times, and addresses no-shows. Currently, truckers who wait over 60 minutes receive a refund, while penalties apply for no-shows.
The impact of our case is substantial and, potentially, strengthening our SBC and AACSB accreditations. The case company draws a significant portion of truck traffic in and out of Southampton, making the roundabout and roads near DP World some of the most polluted areas in the county. DP World-related traffic accounts for the majority of container movements from the Midlands and the South of England. If our Vehicle Booking System (VBS) is successful, it could reduce emissions not only in Southampton but also throughout the Southeast of England. As truck emissions are one of the largest contributors to pollution in the UK, the sustainability potential of this project is considerable for the logistics and container transportation industry.
By optimising booking times and reducing congestion, the VBS will lower CO2 emissions from heavy-duty vehicles, which are the second-largest contributors to transportation-related greenhouse gas emissions in the UK (Statista, 2024). This aligns with the UK's net-zero targets for 2050 and sets an example for global logistics companies to adopt greener practices.
The research impact has been discussed with the Research and Enterprise Manager of the Faculty of Social Sciences, as well as the Impact Case Champion at Southampton Business School. Both have expressed interest in developing this as a potential impact case study, contingent upon its successful completion by the next REF submission.
Our project aims to facilitate knowledge exchange and enterprise by delivering significant impact for both business and the environment. The project’s scope extends beyond developing a pricing system. If DP World Southampton implements the new Vehicle Booking System (VBS) model, it will serve as a pilot for broader commercial applications. A series of workshops and conference presentations will support this process. The commercial aspect is reinforced by having a case company to test our proposal, and if successful, this could lead to wider market adoption, contributing to the logistics industry’s global sustainability goals. Additionally, the Principal Investigator (PI) is initiating a Knowledge Transfer Partnership (KTP) application to enable knowledge exchange in environmental management accounting with the case company.
To connect with stakeholders across Southampton this project can make use of the Port-city forum created by the University’s IPACT project (Infrastructure for port-cities and coastal towns) https://ipact.org.uk/2024/05/16/southampton-port-city-forum/. This forum contains a diverse range of already engaged local stakeholders, such as ABP, DP World, Solent Stevedores, Carnival Cruises, Southampton City Council, Solent Forum, Red Funnel, Go South Coast Ltd, SMMI, Meachers Global Logistics, South Western Railway, Old Town Community Forum, Ridge and Partners, Channel Coastal observatory, AGS Airports, EBP South, Southampton Voluntary Services, Solent Partners and The University of Southampton. This network will enable widespread knowledge exchange across Southampton and help identify further opportunities in collaboration with stakeholders, as well as assisting in attracting the stakeholders this project aims to engage with via workshops.
Finally, this project represents a valuable knowledge exchange. DP World Southampton is leveraging our expertise in developing dynamic VBS pricing, and the insights gained will also be integrated into our Business School curriculum. With new Shipping Finance and Sustainable Finance programmes launching in 2025, students will have the opportunity to learn from this real-world case study, further enhancing the impact of our research.
