By Jim Shaw
shaw11055@comcast.net
The 49th and 50th states are awaiting an economic recovery that may still be several years off. Hawaii in particular has been hit by an economic stagnation that has crippled its tourism industry. This has also affected its cruise business. But an upswing may be in the making because of Disney Cruise Line’s decision to sail its Disney Wonder out to the islands twice next year. Although not a large commitment, island businesses catering to tourism are hoping that the publicity from this move may help generate more interest in Hawaiian cruising, especially while NCL America struggles to keep its one remaining ship, the 80,439-gt Pride of America, fully booked.
On the cargo front the financial problems being experienced by Horizon Lines have shippers in both states worried. This year Horizon incurred a first quarter loss of $33.3 million followed by a second quarter loss of $5.4 million. On August 15th the company defaulted on $330 million in convertible notes and since midsummer its share price of common stock has fallen below one dollar.
Horizon’s loss through bankruptcy would mean that Matson Navigation would become the sole provider of liner container services between the United States West Coast, Hawaii and Guam while Totem Ocean Trailer Express (TOTE) would be in the same position in the Alaska Trade. Fortunately, Horizon was able to complete a $655 million refinancing package in early October that should place it on somewhat stronger financial legs but its long-term health still holds a question mark.
Cruise Recovery
This past summer Hawaii’s Department of Business, Economic Development & Tourism (DBED&T) was forced to lower its projections for growth over the next year because of the still troubled domestic economy as well as the problems being experienced in Japan following the March earthquake and tsunami. Japan has traditionally been a major provider of tourists to the islands, as well as business investors. According to the DBED&T, Hawaii’s economy is expected to continue positive but experience slower growth for the rest of this year and well into 2012.
Measured by real gross domestic product (GDP) the state’s economy is projected to show a 1.3 percent increase through the remainder of this year, down 0.3 of a percentage point from the 1.6 percent growth the department projected last quarter. That growth is expected to increase only 1.8 percent by the end of 2012.
At the same time, visitor arrivals to the islands are expected to increase 3.0 percent, 0.8 of a percentage point lower than the department’s previous forecast, while 2012 arrivals are expected to increase slightly less, at about 2.9 percent.
One bright spot is the recent decision by Hawaiian Airlines to open up a new direct flight between Honolulu and Fukuoka, Japan starting in April, which will hopefully bring an additional 100,000 visitors to the islands annually.
Can Disney Help?
In the cruise sector, Florida-based Disney Cruise Line will also be helping out as it has decided to operate two cruises to the islands next year using its 83,000-gt Disney Wonder. The ship, which operated its first Alaska season this past summer, will sail from Los Angeles to Kahului, Nawiliwili, Hilo and Honolulu via a call at Ensenada, Mexico to satisfy cabotage requirements. The first 15-night Hawaiian itinerary will depart Los Angeles on April 29, 2012 while the second, featuring a 14-night itinerary, will depart Los Angeles on October 14.
The 12-year-old Disney Wonder will not be the only foreign-flag cruise ship venturing out to the islands next year as similar voyages are to be operated by Princess Cruises’ Golden Princess, Ocean Princess, Star Princess and Sapphire Princess, as well as Holland American Line’s Oosterdam and Rotterdam. While these vessels will operate round-trip cruises from the mainland via either Mexican or Canadian cabotage stops, several overseas ships, such as the German-operated Europa and Aurora, will also be calling among the islands while on longer worldwide itineraries.
The Port of Honolulu, on Oahu Island, will host most of the cruise liners but the Port of Hilo, on the Big Island, will also gain traffic. In fact, Hilo expects to see a 30.5 percent jump in its cruise numbers next year, a major boost following a miniscule increase this year.
Inter-island cruises will continue to be operated by NCL America’s Pride of America, now the only US-flagged cruise ship serving the state, but bookings for this ship have also suffered because of the economy.
Hawaii’s Forgotten Ferries
On the ferry front Hawaii has proven to be an unhappy hunting ground for vessel operators trying to make a profit running point-to-point services. The two boats once operated by what was formerly the largest operator in the islands, Hawaii Superferry, are now in Virginia where their current owner, the US Maritime Administration (MarAd), is attempting to find new owners. MarAd put the two vessels – Alakai and Huakai – up for sale on an “as is, where is” basis in late June and received only four bids. It is now working expeditiously with these bidders, as well as other “interested parties,” in evaluating options for the boats, with the intention of maximizing the government’s return.
The government, through MarAd, took possession of the twin ferries in July 2009 after a bankruptcy judge ruled that Hawaii Superferry could abandon them to lenders which, at the time, were owed nearly $160 million. MarAd, which had guaranteed construction loans for both boats, took them over and moved them to Norfolk where they were examined but apparently passed over by other government agencies.
Ironically, another vessel that attempted to establish a working ferry service in the islands, the catamaran Melissa Ann, is having a much better go of it in Puget Sound where the King County Ferry District and the US Coast Guard recently gave it the green light to carry more passengers on the Vashon-Seattle run. The ferry has been traveling full and has had to leave riders on the dock more than 80 times this year because of a lack of capacity. In 2007/09 the small cat operated a pilot ferry program between Kalaeloa and Honolulu for $2 per passenger but operating costs and low ridership meant that the boat would have required a ticket price of more than $200 per person just to break even on the government-sponsored experimental run.
Alaska’s Ailing Ferries
The State of Alaska has also been suffering ferry problems. Last year the state’s attorney general’s office, acting on behalf of the Alaska Department of Transportation and Public Facilities (Alaska Marine Highway System), filed a lawsuit concerning the engines fitted into the two fast ferries Fairweather and Chenega, both built by Connecticut’s Derecktor Shipyards during 2004/05.
The defendants – Robert E. Derecktor Inc., MTU Friedrichshafen and MTU Detroit Diesel Inc. – have already accomplished substantial repairs on the engines, all MTU diesels, but the state believes these repairs have not properly remedied the problem and that the boats are still prone to breakdowns. Because of this it has filed a motion with Alaska’s superior court seeking a preliminary injunction in the ongoing dispute that would require the builder to provide new engines for both vessels.
Although the original engines were warranted to last 25 years and 100,000 operating hours the state feels the engines are wearing out far faster than their warranties promised and that replacing all eight diesels could cost the state in the range of $20 million. Through legal action it hopes to gain new engines for both vessels before they suffer mechanical failures that could take each ferry out of service for a prolonged period of time.
The 2004-built Fairweather, based at Juneau, has been operating between Sitka and Petersburg while the 2005-built Chenega, based in Cordova, has been running between Valdez and Whittier.
The Alaska Class
While it awaits a legal ruling on the Fairweather and Chenega case the Alaska Marine Highway System is moving forward with its plans to build a new class of ferry, the “Alaska” class, to operate intermediate runs as well as eventually replace some of its older mainline ships that are now approaching a half-century of service. Wanting to keep as much of this project in-state as possible the Alaska Department of Transportation & Public Facilities (ADOT&PF) has taken over the project from the Federal Highway Administration (FHA) and selected Alaska Ship & Drydock (AS&D), which operates the Ketchikan Shipyard at Ketchikan, as construction manager and general contractor.
Seattle-based Elliott Bay Design Group has been selected as the state’s naval architect and engineering contractor for the project, taking over from the FHA, which had already spent about $1.7 million on preliminary design work but is now to be refunded. The ferries envisioned would be “day boats” measuring approximately 350 feet in length and having a capacity of 500 passengers and 60 vehicles. They would make use of a yet-to-be chosen propulsion system and be environmentally friendly. When the final design is ready AS&D will have the first opportunity to negotiate a contract with the state for construction of the lead vessel. “By participating in the design, ASD will have thorough knowledge of the vessel and what it will take to construct it,” said ADOT&PF Commissioner Marc Luiken.
“AS&D can then submit a bid to build the vessel. This puts AS&D in a partnership with the state, an arrangement that should limit costly change orders and cost overruns. Luiken added that the new selection process “fulfills our responsibility to maximize the value of public funds while providing an opportunity for economic development and jobs in Alaska.” ADOT&PF officials hope to eventually have three of the Alaska Class built, with the first ship slated for the Lynn Canal route between Skagway, Haines and Juneau while the second would sail between Ketchikan and Prince Rupert. The third vessel would serve ports in the Prince William Sound area.
Anchorage Expansion
A project taking even longer than the state’s new Alaska class is the expansion of the Port of Anchorage. The estimated costs of this project, meant to double the number of berths at the port, have tripled since 2005, to more than $1 billion. Nearly $280 million has been spent so far, with much of the funding coming from the federal government. Federal auditors are now looking into the project to determine why there have been significant cost overruns.
Although the port is a city entity the Anchorage Assembly agreed in 2003 to give the federal Maritime Administration (MarAd) a lead role in the project, even though that agency had never managed such a project before. Since then, changes have been made to give the city a bigger role in overseeing the effort while MarAd is stationing one of its officials at the site on a full-time basis. Under port director Bill Sheffield, a former Alaska governor, the project design went from a dock-on-piling structure, similar to the port’s existing piers, to one in which U-shaped cells of steel are installed, then backfilled to create new land. This was eventually to see a wall of steel created that would stretch for 1.5 miles and create 130 acres of new land. Unfortunately, the placement of the steel sheet has not gone to plan and many of the interlocking panels have been bent or shifted out of position during installation, requiring their removal and reinstallation.
This past summer a bulldozer operator was killed when dirt collapsed beneath him during this operation. It is now estimated that the originally proposed project, to have been completed this year, may have to be scaled back to contain construction costs while the project’s overall completion will have to be moved to 2021.
ExxonMobil’s Order
In the Trans Alaska Pipeline System (TAPS) trade, ExxonMobil is hoping for a much shorter construction period and much more attention to budget after confirming orders for two 115,000-dwt crude carriers at the Aker Philadelphia shipyard in October. Construction of the first 730,000-barrel capacity ship is scheduled to begin next year for delivery in 2014 with the second ship following shortly after. When completed both tankers will be deployed by ExxonMobil affiliate SeaRiver Maritime on the Alaska-West Coast run, replacing the aging Kodiak and Sierra.
These vessels, built as the single-hull Kenai and Tosina in the late 1970s, were converted to double-hull for operation by BP/Alaska Tanker Company before moving into the SeaRiver fleet in 2005/06. Prior to reentering service they each received extensive refits in Singapore but Kodiak suffered a well-publicized breakdown at sea in 2010 after it lost power when an aft steam generator overheated.
For the new tankers, South Korea’s Samsung Heavy Industries is being brought in to provide technical support, with the twin ships expected to cost roughly $200 million each to build. This will be approximately three times more than what Samsung would charge if the ships were built at its home yards in Asia.
The new tankers will be the first TAPS ships built by a US shipyard in more than a half decade, the last being the four-ship order completed for BP by San Diego’s NASSCO in 2004-2006.
Tuesday, November 8, 2011
New Pacific Maritime Magazine Online Editor
Today we are pleased to welcome new PMM Online editor Mark Edward Nero. Mark has been a professional journalist since 1995 and has covered the maritime shipping industry since 2002. Based in Long Beach, California, Mark was previously a reporter with the Long Beach Press-Telegram where he covered the ports of Los Angeles and Long Beach. His work has also appeared in numerous other publications, including Pacific Maritime Magazine, The Cunningham Report, Fairplay magazine, the San Diego Union-Tribune, Boston Globe and the Los Angeles Daily News.
Ship Owner, Operator Fined After Port of Portland Oil Spill
Weeks after an oil spill at the Port of Portland, the owner and operator of a Cyprus-flagged ship involved in the incident have pleaded guilty to federal charges of environmental pollution.
On Nov. 2, Greece-based A.E. Nomikos Shipping Inv. and Lounia Shipping Co. of Cyprus, the owner and operator of the 620-foot Arion SB, were jointly fined $750,000 by a US federal judge.
The companies admitted to violating the Act to Prevent Pollution from Ships, failing to maintain proper records of oil residue disposals and doctoring records of its onboard waste-oil incinerator.
The US Attorney’s office has said the case isn’t specifically tied to the oil spill, but to the findings of an Oct. 16 safety exam by the US Coast Guard and Environmental Protection Agency. The spill occurred Oct. 18 at a Port of Portland export terminal.
About 300 fish were found dead in the water after the spill, state wildlife officials say. Although a clear link between the incident and the deaths of the fish still has not been established, half of money from the fine has been designated for the Oregon Governor’s Fund for the Environment, which is administered by the National Fish & Wildlife Foundation.
On Nov. 2, Greece-based A.E. Nomikos Shipping Inv. and Lounia Shipping Co. of Cyprus, the owner and operator of the 620-foot Arion SB, were jointly fined $750,000 by a US federal judge.
The companies admitted to violating the Act to Prevent Pollution from Ships, failing to maintain proper records of oil residue disposals and doctoring records of its onboard waste-oil incinerator.
The US Attorney’s office has said the case isn’t specifically tied to the oil spill, but to the findings of an Oct. 16 safety exam by the US Coast Guard and Environmental Protection Agency. The spill occurred Oct. 18 at a Port of Portland export terminal.
About 300 fish were found dead in the water after the spill, state wildlife officials say. Although a clear link between the incident and the deaths of the fish still has not been established, half of money from the fine has been designated for the Oregon Governor’s Fund for the Environment, which is administered by the National Fish & Wildlife Foundation.
Port of Long Beach Picks New Executive Director
The Long Beach Board of Harbor Commissioners has chosen Chris Lytle to succeed Dick Steinke as the port’s executive director. The board confirmed Nov. 7 that it would vote to approve Lytle during its next business meeting, currently scheduled for Nov. 14.
Lytle, who’s held the position of deputy executive director since 2008, joined the port as a managing director in 2006. He holds a master’s degree in business administration from the University of Puget Sound and a bachelor’s degree in business administration from Central Washington University.
He’s a former vice president with the French shipping line CMA CGM and also previously held executive-level positions with P&O Ports North America, Sea-Land Service Inc. and APM Terminals.
Harbor Commission President Susan E. Anderson Wise said that Lytle was chosen after an extensive, nationwide search and that his extensive public and private experience make him the ideal choice.
“On the private side, he’s operated shipping terminals around the world and fully understands the unique issues facing public ports in California,” she said. “And while he understands the industry, he’s also very open to new ideas and innovations.”
Steinke, who announced his retirement in April, joined the port in 1990 and had been executive director since 1997.
Lytle, who’s held the position of deputy executive director since 2008, joined the port as a managing director in 2006. He holds a master’s degree in business administration from the University of Puget Sound and a bachelor’s degree in business administration from Central Washington University.
He’s a former vice president with the French shipping line CMA CGM and also previously held executive-level positions with P&O Ports North America, Sea-Land Service Inc. and APM Terminals.
Harbor Commission President Susan E. Anderson Wise said that Lytle was chosen after an extensive, nationwide search and that his extensive public and private experience make him the ideal choice.
“On the private side, he’s operated shipping terminals around the world and fully understands the unique issues facing public ports in California,” she said. “And while he understands the industry, he’s also very open to new ideas and innovations.”
Steinke, who announced his retirement in April, joined the port in 1990 and had been executive director since 1997.
New HQ for Long Beach Port Still Uncertain After Vote
For the second time in as many votes, the Long Beach harbor board has reached a stalemate on the issue of buying the Long Beach World Trade Center to use as the new headquarters for the Port of Long Beach.
During the board’s Nov. 7 business meeting, the board considered whether to extend the purchase contract period for the WTC beyond the Nov. 14 deadline, but the outcome was the same as when the board first considered the purchase on Oct. 10: a 2-2 tie.
Vice President Thomas Fields and commissioner Nick Sramek voted for the extension and commissioners Rich Dines and Doug Drummond against. The fifth member, President Susan Wise has recused herself from the issue because she and her husband both have office space in the building.
Fields and Sramek have said that the purchase is needed to expedite the exodus of the port’s 450-person staff from the current building, which was built in the 1950s and has been declared seismically deficient.
But Dines and Drummond have argued that the purchase price – $130 million – is too steep for the 27-story downtown building.
With the stalemate, the possibility of a purchase is essentially dead in the water.
The port had originally planned to internally fund and build a $220 million state-of-the-art headquarters within the harbor; however the idea was eventually shot down by Long Beach Mayor Bob Foster as too expensive. Since then, the port’s been looking to lease or purchase a nearby office building to house port staff.
During the board’s Nov. 7 business meeting, the board considered whether to extend the purchase contract period for the WTC beyond the Nov. 14 deadline, but the outcome was the same as when the board first considered the purchase on Oct. 10: a 2-2 tie.
Vice President Thomas Fields and commissioner Nick Sramek voted for the extension and commissioners Rich Dines and Doug Drummond against. The fifth member, President Susan Wise has recused herself from the issue because she and her husband both have office space in the building.
Fields and Sramek have said that the purchase is needed to expedite the exodus of the port’s 450-person staff from the current building, which was built in the 1950s and has been declared seismically deficient.
But Dines and Drummond have argued that the purchase price – $130 million – is too steep for the 27-story downtown building.
With the stalemate, the possibility of a purchase is essentially dead in the water.
The port had originally planned to internally fund and build a $220 million state-of-the-art headquarters within the harbor; however the idea was eventually shot down by Long Beach Mayor Bob Foster as too expensive. Since then, the port’s been looking to lease or purchase a nearby office building to house port staff.
Wharf Extension Complete at Port of Tacoma
A new, $32 million wharf extension has opened at the Washington United Terminals wharf on the Blair Waterway at the Port of Tacoma. As part of the project, 600 feet was added to the terminal’s existing 2,000-foot berth in order to support two 273-foot high container cranes with 24-container-wide reaches that were brought to the terminal in January 2009.
The cranes joined four others with an 18-container-wide reach already at the location.
Work on the extension began after Port of Tacoma commissioners approved a build contract with Manson Construction in December 2009.
Port of Tacoma CEO John Wolfe called the project a great example of how the port works with shipping lines and terminal operators to make investments that create additional capacity for future growth.
A ribbon-cutting was held Nov. 1 to mark the official opening.
The cranes joined four others with an 18-container-wide reach already at the location.
Work on the extension began after Port of Tacoma commissioners approved a build contract with Manson Construction in December 2009.
Port of Tacoma CEO John Wolfe called the project a great example of how the port works with shipping lines and terminal operators to make investments that create additional capacity for future growth.
A ribbon-cutting was held Nov. 1 to mark the official opening.
Thursday, November 3, 2011
WSF’s Security Program Delivers Peace of Mind for its 22 Million Riders
By Greg Jose, with contributions from staff of Washington State Ferries Security Department, US Coast Guard Sector Puget Sound and Art Anderson Associates
The events of 9/11 brought into clear focus the need to strengthen the United States’ critical infrastructure against risks associated with potential terrorist attacks. Transportation systems, including ferries, were recognized to be at heightened risk due their public prominence and dense accommodation of large numbers of people.
New laws were created to address this concern, including the Maritime Transportation Security Act of 2002. Referred to as MTSA, the law requires vessel and port facility operators to conduct vulnerability assessments and develop security plans. In 2003, the US Coast Guard estimated the private sector costs of compliance to be $6.8B over ten years. To help defray this cost, the Government implemented the Port Security Grant Program (PSGP), which has since provided more than $2B in competitive grants to port and transportation facility operators.
Washington State Ferries (WSF), as the largest passenger and automobile ferry system in the United States, has been a recipient of PSGP funding and has engaged in a systematic and continual effort to improve vessel and terminal security. Art Anderson Associates (AAA), an engineering firm that specializes in services for ferry transportation systems, has served as WSF’s lead consultant providing critical implementation engineering support since 2003.
WSF now boasts a security program that includes, among other things, a fully integrated access control and video monitoring system. WSF’s successful buildout of its vessel and terminal security systems and procedures provides innovative and reliable security assurance to its daily operations, which translates to peace of mind for its 22 million annual passengers. But the path to success hasn’t been without its challenges, and WSF and AAA’s experience can provide lessons for other operators with similar security needs.
The Learning Curve
The relatively quick action by the Government to implement new requirements presented a steep learning curve for all involved. Following the 9/11 attacks, it was generally accepted that the next one was not a matter of “if,” but “when.”
A rapid rollout of new security measures and systems was needed, but nobody was really sure how they would take shape. In Puget Sound, the US Coast Guard Captain of the Port took charge, setting up a port security-related committee to address these challenges (the Puget Sound Area Maritime Security Committee), including a subcommittee related to the ferry system. The committee brought together all the crucial agencies involved in security, including the FBI’s Joint Terrorism Task Force, Washington State Patrol, US Customs and Border Protection and others to develop coordinated strategies and plans.
“Everybody came together to figure things out,” said John Dwyer, Chief of the Inspection Division at US Coast Guard Sector Puget Sound. Mr. Dwyer is the current head of the Vessel Security and Washington State Ferries Sub-Committees within the Puget Sound Area Maritime Security Committee. “A lot of stuff is déjà-vu, back-to-the-future,” said Mr. Dwyer, referring to strategies like small boat patrols and TWIC card implementation, which were similar to security programs implemented in World War II and the Korean War.
As MTSA and its requirements were put into place, the committee worked together to develop WSF’s coordinated security plan. Helmut Steele, WSF’s Company Security Officer, and a former Washington State Patrol Captain, advised a key strategy in WSF’s Alternative Security plan, which was to improve WSF’s ability to control access to and monitor and record sensitive areas at terminals and aboard vessels. Such a strategy would require the design and installation of video cameras, card access systems, alarm systems, improved lighting, physical security configuration changes and IT integration in central monitoring locations. WSF applied for, and was successful in being awarded the first of its Port Security Grants in 2003.
Grant funding requirements dictated that an outside consultant be engaged to support implementation of the new security systems. Art Anderson Associates was selected as the security consultant because of its customer service strategy for integrating naval architecture and marine engineering services with architecture and engineering for ferry terminals and support facilities, and its successful history serving WSF on previous contracts.
Facing Challenges
It was clear from the outset of the program that daunting challenges faced the team. There were questions as to what specifically needed to be monitored and controlled, whether to use a single vendor or multiple vendors, how to deal with the logistics of managing equipment information, and how to develop the best and most reliable strategies for mobile system connectivity using technologies that had not yet evolved to the current state of the art.
The team quickly recognized that successful knowledge management would be a key to the program’s success moving forward. With thousands of pieces of equipment spread throughout the WSF system, configuration data and documentation were determined to be critical attributes for success. An electronic catalog system was developed for user-friendly access to the equipment data. As equipment was added or replaced, the appropriate data was filed and cataloged immediately. Because of the pace of the project, daily updates were sometimes necessary to stay on top of things.
Addressing the mobile connectivity problem and the volume of monitoring information was another challenge. Spread across a large geographic area, with routes that ply the winding fjords of Puget Sound, building a system that ensures a reliable data connection with the reporting locations was a struggle, but not one that was insurmountable. The project team pioneered solutions that overcame the difficulties of limited existing infrastructure.
Adapting to Change
Among many challenges, the biggest of all was reconciling the fast-changing world of IT and computer systems with the relatively glacial pace of change in the maritime industry. “It was like trying to hit a moving target,” said Art Anderson Associates electrical designer Mike Tasso, a key member of the design team. “The technology was growing by leaps and bounds, and once a piece of equipment was selected, designed and installed, there was already a new one on the market that was better.”
In a typical ship design/repair project, it can take anywhere from six months to a year from development of a design drawing to final installation. For this project, the typical time frame needed to be accelerated. Even then, it was common that as a design package neared completion, the equipment would change right up until the moment it was time to purchase and install the item.
In addition, the “hardened” installations could only occur while vessels were in the shipyard. Therefore the team had to find a way to set up a design and production schedule that would match completion of design with vessel availabilities in a timely manner, lest the design be obsolete by the time the vessel could enter the yard.
Then there was the “domino effect” of changes. It was frequently the case that a new piece of equipment would require additional unforeseen changes to ensure it could function. For instance, new video equipment needed new servers, which needed additional power supplies, which generated additional heat in the server cabinet, requiring new cooling equipment. Early on, many of these lessons were addressed on the fly, but as the security program became more refined, these cascade effects were anticipated early and planned for.
Compounding the complexity was the fact that technology and equipment weren’t the only things changing – the security environment was too. For instance, at one point in the project, new requirements were introduced that necessitated expanded video surveillance coverage at ferry terminals and aboard vessels. This required WSF to determine the specific locations for the new equipment, and modify existing server racks and data systems to accommodate it.
Communication is Key
Early on in the project, WSF made the decision to utilize multiple vendors for the security systems, rather than a single source. While this freed the team to select the best piece of equipment for a specific application, it also raised the bar of knowledge and communication needed to design a well-functioning, integrated system with the best technology.
Fortunately, everyone seemed to get along well. “This area is good at collaboration,” said Mr. Dwyer. In addition to the bi-monthly meetings of the WSF Subcommittee Mr. Dwyer chairs, weekly project meetings between AAA, WSF and vendor personnel were important factors in keeping everyone on the same page. “WSF’s security team led a workgroup with a real diversity of expertise and opinion, which allowed ideas to be generated and good solutions to bubble to the top. Having all the vendors in one room also helped in expediting the often-difficult task of getting all the different pieces of equipment to talk to each another in an integrated way.
Looking Ahead
More than eight years have passed since WSF began the program. Since that time, the system has continued to be constructed to cover all 20 terminals and all 22 vessels in the fleet. The hundreds of data collection points (cameras, access systems, alarms) have been integrated into a single network with confidential central monitoring. As a result, WSF has significantly increased the safety and security of its vessels and facilities, and accordingly, the safety of the general public.
While system design and construction has fulfilled WSF Alternative Security Plan requirements since the initial build-out of the system, there is an ongoing technical and logistical challenge to maintain the systems and update the technology to keep pace with a rapidly evolving industry. But even more importantly, there is an ongoing challenge to continue to diminish the risk of a threat that might not be intercepted.
Both AAA and WSF have learned many hard-won lessons though the course of this challenging program. The chief lessons focus on the importance of strong relationships, communication and an acceptance of change.
WSF has also acknowledged the importance of technical capability. Mr. Steele emphasized this point: “The marine environment is much more challenging,” he said. “One key to success is finding outside companies with vast knowledge in marine operations, such as Art Anderson Associates and the security system vendors.”
With maritime engineering experience that spans from shoreside facilities to operating vessels, including working on complex systems for WSF, the nation’s largest ferry operator, vessel operators rely on companies such as Art Anderson Associates to provide expert engineering assistance.
Greg Jose is the Manager of Corporate Image and Opportunity at Art Anderson Associates. He leads business development and project management for ferry transportation planning projects and is responsible for the firm’s overall marketing campaigns and programs.
The events of 9/11 brought into clear focus the need to strengthen the United States’ critical infrastructure against risks associated with potential terrorist attacks. Transportation systems, including ferries, were recognized to be at heightened risk due their public prominence and dense accommodation of large numbers of people.
New laws were created to address this concern, including the Maritime Transportation Security Act of 2002. Referred to as MTSA, the law requires vessel and port facility operators to conduct vulnerability assessments and develop security plans. In 2003, the US Coast Guard estimated the private sector costs of compliance to be $6.8B over ten years. To help defray this cost, the Government implemented the Port Security Grant Program (PSGP), which has since provided more than $2B in competitive grants to port and transportation facility operators.
Washington State Ferries (WSF), as the largest passenger and automobile ferry system in the United States, has been a recipient of PSGP funding and has engaged in a systematic and continual effort to improve vessel and terminal security. Art Anderson Associates (AAA), an engineering firm that specializes in services for ferry transportation systems, has served as WSF’s lead consultant providing critical implementation engineering support since 2003.
WSF now boasts a security program that includes, among other things, a fully integrated access control and video monitoring system. WSF’s successful buildout of its vessel and terminal security systems and procedures provides innovative and reliable security assurance to its daily operations, which translates to peace of mind for its 22 million annual passengers. But the path to success hasn’t been without its challenges, and WSF and AAA’s experience can provide lessons for other operators with similar security needs.
The Learning Curve
The relatively quick action by the Government to implement new requirements presented a steep learning curve for all involved. Following the 9/11 attacks, it was generally accepted that the next one was not a matter of “if,” but “when.”
A rapid rollout of new security measures and systems was needed, but nobody was really sure how they would take shape. In Puget Sound, the US Coast Guard Captain of the Port took charge, setting up a port security-related committee to address these challenges (the Puget Sound Area Maritime Security Committee), including a subcommittee related to the ferry system. The committee brought together all the crucial agencies involved in security, including the FBI’s Joint Terrorism Task Force, Washington State Patrol, US Customs and Border Protection and others to develop coordinated strategies and plans.
“Everybody came together to figure things out,” said John Dwyer, Chief of the Inspection Division at US Coast Guard Sector Puget Sound. Mr. Dwyer is the current head of the Vessel Security and Washington State Ferries Sub-Committees within the Puget Sound Area Maritime Security Committee. “A lot of stuff is déjà-vu, back-to-the-future,” said Mr. Dwyer, referring to strategies like small boat patrols and TWIC card implementation, which were similar to security programs implemented in World War II and the Korean War.
As MTSA and its requirements were put into place, the committee worked together to develop WSF’s coordinated security plan. Helmut Steele, WSF’s Company Security Officer, and a former Washington State Patrol Captain, advised a key strategy in WSF’s Alternative Security plan, which was to improve WSF’s ability to control access to and monitor and record sensitive areas at terminals and aboard vessels. Such a strategy would require the design and installation of video cameras, card access systems, alarm systems, improved lighting, physical security configuration changes and IT integration in central monitoring locations. WSF applied for, and was successful in being awarded the first of its Port Security Grants in 2003.
Grant funding requirements dictated that an outside consultant be engaged to support implementation of the new security systems. Art Anderson Associates was selected as the security consultant because of its customer service strategy for integrating naval architecture and marine engineering services with architecture and engineering for ferry terminals and support facilities, and its successful history serving WSF on previous contracts.
Facing Challenges
It was clear from the outset of the program that daunting challenges faced the team. There were questions as to what specifically needed to be monitored and controlled, whether to use a single vendor or multiple vendors, how to deal with the logistics of managing equipment information, and how to develop the best and most reliable strategies for mobile system connectivity using technologies that had not yet evolved to the current state of the art.
The team quickly recognized that successful knowledge management would be a key to the program’s success moving forward. With thousands of pieces of equipment spread throughout the WSF system, configuration data and documentation were determined to be critical attributes for success. An electronic catalog system was developed for user-friendly access to the equipment data. As equipment was added or replaced, the appropriate data was filed and cataloged immediately. Because of the pace of the project, daily updates were sometimes necessary to stay on top of things.
Addressing the mobile connectivity problem and the volume of monitoring information was another challenge. Spread across a large geographic area, with routes that ply the winding fjords of Puget Sound, building a system that ensures a reliable data connection with the reporting locations was a struggle, but not one that was insurmountable. The project team pioneered solutions that overcame the difficulties of limited existing infrastructure.
Adapting to Change
Among many challenges, the biggest of all was reconciling the fast-changing world of IT and computer systems with the relatively glacial pace of change in the maritime industry. “It was like trying to hit a moving target,” said Art Anderson Associates electrical designer Mike Tasso, a key member of the design team. “The technology was growing by leaps and bounds, and once a piece of equipment was selected, designed and installed, there was already a new one on the market that was better.”
In a typical ship design/repair project, it can take anywhere from six months to a year from development of a design drawing to final installation. For this project, the typical time frame needed to be accelerated. Even then, it was common that as a design package neared completion, the equipment would change right up until the moment it was time to purchase and install the item.
In addition, the “hardened” installations could only occur while vessels were in the shipyard. Therefore the team had to find a way to set up a design and production schedule that would match completion of design with vessel availabilities in a timely manner, lest the design be obsolete by the time the vessel could enter the yard.
Then there was the “domino effect” of changes. It was frequently the case that a new piece of equipment would require additional unforeseen changes to ensure it could function. For instance, new video equipment needed new servers, which needed additional power supplies, which generated additional heat in the server cabinet, requiring new cooling equipment. Early on, many of these lessons were addressed on the fly, but as the security program became more refined, these cascade effects were anticipated early and planned for.
Compounding the complexity was the fact that technology and equipment weren’t the only things changing – the security environment was too. For instance, at one point in the project, new requirements were introduced that necessitated expanded video surveillance coverage at ferry terminals and aboard vessels. This required WSF to determine the specific locations for the new equipment, and modify existing server racks and data systems to accommodate it.
Communication is Key
Early on in the project, WSF made the decision to utilize multiple vendors for the security systems, rather than a single source. While this freed the team to select the best piece of equipment for a specific application, it also raised the bar of knowledge and communication needed to design a well-functioning, integrated system with the best technology.
Fortunately, everyone seemed to get along well. “This area is good at collaboration,” said Mr. Dwyer. In addition to the bi-monthly meetings of the WSF Subcommittee Mr. Dwyer chairs, weekly project meetings between AAA, WSF and vendor personnel were important factors in keeping everyone on the same page. “WSF’s security team led a workgroup with a real diversity of expertise and opinion, which allowed ideas to be generated and good solutions to bubble to the top. Having all the vendors in one room also helped in expediting the often-difficult task of getting all the different pieces of equipment to talk to each another in an integrated way.
Looking Ahead
More than eight years have passed since WSF began the program. Since that time, the system has continued to be constructed to cover all 20 terminals and all 22 vessels in the fleet. The hundreds of data collection points (cameras, access systems, alarms) have been integrated into a single network with confidential central monitoring. As a result, WSF has significantly increased the safety and security of its vessels and facilities, and accordingly, the safety of the general public.
While system design and construction has fulfilled WSF Alternative Security Plan requirements since the initial build-out of the system, there is an ongoing technical and logistical challenge to maintain the systems and update the technology to keep pace with a rapidly evolving industry. But even more importantly, there is an ongoing challenge to continue to diminish the risk of a threat that might not be intercepted.
Both AAA and WSF have learned many hard-won lessons though the course of this challenging program. The chief lessons focus on the importance of strong relationships, communication and an acceptance of change.
WSF has also acknowledged the importance of technical capability. Mr. Steele emphasized this point: “The marine environment is much more challenging,” he said. “One key to success is finding outside companies with vast knowledge in marine operations, such as Art Anderson Associates and the security system vendors.”
With maritime engineering experience that spans from shoreside facilities to operating vessels, including working on complex systems for WSF, the nation’s largest ferry operator, vessel operators rely on companies such as Art Anderson Associates to provide expert engineering assistance.
Greg Jose is the Manager of Corporate Image and Opportunity at Art Anderson Associates. He leads business development and project management for ferry transportation planning projects and is responsible for the firm’s overall marketing campaigns and programs.
