Design for a nuclear container fleet

Abstract

In a study to determine the economic viability of a nuclear powered container ship, a comparison is made between fleets of conventional and nuclear container ships operating on the same route. Both ships are of the maximum size to pass through the Panama Canal. The profitability criterion used in the economic assessment is the required shadow freight rate per ton of cargo necessary to give zero net present value (NPV) for a specified discount rate (RD)--where zero NPV is coincident with the point where the after tax rate of return on the proposed investment is equal to the specified discount rate. The results indicate that only when discount rates in excess of 9 percent are reached does the conventional vessel show any real advantage over the nuclear alternative. Details are given for the assumptions made as to ship characteristics and routes, and for the method of economic analysis.