Sustainable procurement and environmental life-cycle costing in maritime transport

Abstract

Transportation sector, including maritime transport, exerts significant environmental impact. Public procurement as a policy strategy instrument which applies to the purchase of transport means, construction of infrastructure and the provision logistic services in supplying the goods, services and executing of works must integrate environmental considerations in the contract award procedures. While conventional life-cycle costing (LCC) is based on four categories to be assessed e.g. investment, operation, maintenance and end-of-life disposal expenses, the environmental LCC method also takes into account the external environmental costs. The paper is focused on sustainable public procurement and environmental life-cycle costing aspects of EU 2014 Directive. Analysis is made of the real cost of procurement, the externalities and the impact of maritime transport sector on the environment. The purpose of this research is to propose the framework for assessment of integral impact on the environment which combines environmental LCC approach with TBL concept using non-monetary units for measuring externalities. The authors advocate clean and energy-efficient maritime transport ensuring effective implementation of environmental policy objectives and targets and emphasize the role of public authorities and entities in fostering the inclusion of environmental externalities in calculation of LCC.