In ferry operation, the asset itself forms only a small part of a system for transporting people and vehicles between. A combination of inputs impact the ferry’s ability to deliver effective operational capability. In a study, BMT Design & Technology spotlight the elements that have to be considered by operators
Too much emphasis is often placed on the acquisition of a ferry, rather than on the remaining operational inputs, resulting[ds_preview] in an ineffective, inefficient and unsuccessful operation, the experts at BMT say. Only by robust management of all of the capability inputs can an operation be effectively maintained.
To develop a better understanding of the inputs to capability, BMT recommends a look at the defence forces, which operate complex systems: »There are a range of available frameworks that define inputs to maritime system capability which may include personnel, logistics, equipment, infrastructure, policies and procedures, organisation and training. Each of these elements forms part of a capability. The physical asset, in this case a ferry, is just one of the inputs.«
Although significant investment is made in equipment, when considering the through life costs of vessel ownership, the remaining capability elements represent a large portion of the overall investment. Beyond equipment, the operational coverage of capability elements includes:
- issues relating to recruitment, retention, training and development of people;
- spares, administrative and training supplies;
- systems and infrastructure put in place to support an operation, such as transport;
- procedures and processes, security, command and responsibilities;
- those parts of the organisational structure which undertake critical tasks, other than operation and maintenance of the asset;
- buildings, docks, maintenance facilities, training facilities and wharves; and
- the maintenance of competency of the organisation.
According to BMT, throughout the lifecycle of a ferry, a comprehensive understanding of associated costs is crucial for business planning and reporting. Stakeholders should duly consider the elements aforementioned at all stages of the ferry’s lifecycle. Taking the time to understand these elements at the beginning of a project will allow organisations to manage the costs effectively throughout. Major changes in capability may trigger the need for a review.
A capability upgrade can not only trigger substantial, physical modifications to a ferry, it can mean additional, hidden costs related to the other capability elements, which in turn can become significant if not addressed and managed accordingly.
As an example, consider a ferry modification, which has resulted in an additional 5m being added to its length to allow an extra 20 passengers to be transported. The costs associated with such a modification should not just centre on the physical asset itself – organisations must look at all of the capability elements and the impact of such a modification. Considerations of associated cost issues could include, crew numbers and competencies, spares are available, systems affected by the upgrade, sufficient wharf space, increase in berthing fees or capacity of maintenance facilities.
In addition to a capability upgrade, an assessment of capability elements is also critical when investigating the potential to extend the life of an asset. Although there may not be a change in the ferry’s capability, understanding the costs for a life extension period is important, given that any business case made at project inception has been made with an assumption of ferry life. If this assumption changes, it is then necessary to assess the capability elements to help validate whether or not there is a strong business case for life extension and identify the costs of doing so.
Life extension studies are best used as part of the decision making process when considering a vessel’s future, as it nears the end of its service life. Organisations will be looking at two options: to dispose of a vessel and replace with a new capability or extend the life of the current vessel.
In most cases, this decision will simply be down to whether or not it is more cost effective to carry out a replacement project or invest resources into a heightened maintenance regime or major upgrade – it will not remove the need for eventual replacement. Regardless of the decision, consideration of all capability elements is crucial in developing an accurate picture of costs.
There are a range of similar approaches used by organisations around the world which could be considered suitable depending on the operation in question. Whether it is in consideration of capability upgrade, life extension or in gaining an initial understanding of the cost of ownership of a ferry, it is recommended that a holistic approach is taken to defining the operation, extending well beyond the acquisition of the asset.
