The Engineering Economics applied from the Security Perspective in Container Water ports

Abstract

The security in container ports is affecting the marine transport in close to 35% of the cases of container transportation, from damage, theft, and fraud. Because this sector is affected by security in several ways, this paper will present the economic analysis of the security in ports as sufficient justification to RFID (Radio Frequency Identification) implementation. This paper will attempt to justify against manually tracking and inspection. Furthermore, we will investigate how RFID is more economically viable and it is an accurate way to track the container to prevent and to track violations in security. Consequently, this paper will show a cost analysis to compare the manually tracking with the automatic tracking. A mathematical model will be presented as a result of this cost analysis. For the investment of RFID system this paper will present a ROI (Return of Investment) to find which alternative is better, to stay in status quo or improve the security system using RFID. Because there exist other benefits to implement RFID, it is sufficient to obtain at least equal NPV (Net Present Value) of both alternative, the manually tracking and security, and the automatic security and automatic tracking with RFID.