Uncertain new technologies – economics of ground effect vehicle operator

New technologies and vehicle types have become available for transportation and logistics in the recent decade. One of the such is Ground Effect Vehicle (GEV), which in new reinvented form is using electric propulsion, new lighter materials and could be without onboard pilots. These could be used i...

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Main Authors: Olli-Pekka Hilmola, Ekku Heljanko
Format: Article
Language:English
Published: Vilnius Gediminas Technical University 2025-03-01
Series:Business: Theory and Practice
Subjects:
Online Access:https://jest.vgtu.lt/index.php/BTP/article/view/22454
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author Olli-Pekka Hilmola
Ekku Heljanko
author_facet Olli-Pekka Hilmola
Ekku Heljanko
author_sort Olli-Pekka Hilmola
collection DOAJ
description New technologies and vehicle types have become available for transportation and logistics in the recent decade. One of the such is Ground Effect Vehicle (GEV), which in new reinvented form is using electric propulsion, new lighter materials and could be without onboard pilots. These could be used in coastal and archipelago types of areas, where distances are relatively short. In this research is introduced economic and business case evaluation of GEV in the context of Canary Islands. Aim is to build understanding from financial success of GEV. Simulation model incorporates number of uncertainties, like usage life-cycle of fleet, fleet investment cost, interest rates, lower cargo volume development in the early years and possibility for passenger transports. Analysis shows that success depends quite much on cargo pricing, and the interest of customers to pay premiums from faster delivery. Being operator of GEV offers possibility for profitability, but if most of uncertainties take place, then investments might increase too much and result on significant losses. Research provides added value on discipline development and better alternative on spreadsheet and cost focused models.
format Article
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institution DOAJ
issn 1648-0627
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language English
publishDate 2025-03-01
publisher Vilnius Gediminas Technical University
record_format Article
series Business: Theory and Practice
spelling doaj-art-e89c3fac83754b5f9c651b5e43189a742025-08-20T02:42:52ZengVilnius Gediminas Technical UniversityBusiness: Theory and Practice1648-06271822-42022025-03-0126110.3846/btp.2025.22454Uncertain new technologies – economics of ground effect vehicle operatorOlli-Pekka Hilmola0Ekku Heljanko1Estonian Maritime Academy, Tallinn University of Technology, Tallinn, Estonia; Department of Industrial Management, Industrial Design and Mechanical Engineering, University of Gävle, Gävle, SwedenEstonian Maritime Academy, Tallinn University of Technology, Tallinn, Estonia New technologies and vehicle types have become available for transportation and logistics in the recent decade. One of the such is Ground Effect Vehicle (GEV), which in new reinvented form is using electric propulsion, new lighter materials and could be without onboard pilots. These could be used in coastal and archipelago types of areas, where distances are relatively short. In this research is introduced economic and business case evaluation of GEV in the context of Canary Islands. Aim is to build understanding from financial success of GEV. Simulation model incorporates number of uncertainties, like usage life-cycle of fleet, fleet investment cost, interest rates, lower cargo volume development in the early years and possibility for passenger transports. Analysis shows that success depends quite much on cargo pricing, and the interest of customers to pay premiums from faster delivery. Being operator of GEV offers possibility for profitability, but if most of uncertainties take place, then investments might increase too much and result on significant losses. Research provides added value on discipline development and better alternative on spreadsheet and cost focused models. https://jest.vgtu.lt/index.php/BTP/article/view/22454ground effect vehicle (GEV)economicsnew technologiesuncertaintysimulation
spellingShingle Olli-Pekka Hilmola
Ekku Heljanko
Uncertain new technologies – economics of ground effect vehicle operator
Business: Theory and Practice
ground effect vehicle (GEV)
economics
new technologies
uncertainty
simulation
title Uncertain new technologies – economics of ground effect vehicle operator
title_full Uncertain new technologies – economics of ground effect vehicle operator
title_fullStr Uncertain new technologies – economics of ground effect vehicle operator
title_full_unstemmed Uncertain new technologies – economics of ground effect vehicle operator
title_short Uncertain new technologies – economics of ground effect vehicle operator
title_sort uncertain new technologies economics of ground effect vehicle operator
topic ground effect vehicle (GEV)
economics
new technologies
uncertainty
simulation
url https://jest.vgtu.lt/index.php/BTP/article/view/22454
work_keys_str_mv AT ollipekkahilmola uncertainnewtechnologieseconomicsofgroundeffectvehicleoperator
AT ekkuheljanko uncertainnewtechnologieseconomicsofgroundeffectvehicleoperator