Building Capacity

1
Building Capacity Capability A Commercial
Perspective

• FIG Commission 4 Hydrography
• Gordon Johnston
• Hydrographic Professional Services
• gordon.johnston1_at_orange.net

2
OVERVIEW

• INTRODUCTION
• Part 1 Building Long Term Capability
• FIG
• Building Capacity and a Hydrographic Capability
• Setting the Commercial scene
• Experiences from the Commercial Industry
• Influencing Parameters in attracting commercial
  industry to Hydrography
• Thoughts for Building Capacity
• Summary
• Part 2 The Economic Benefits of Hydrography
• Starting Point Capacity Building is Possible

3

• What is FIG?

4
What is FIG?

• FIG The Federation Internationale de Geometrics
  is the top level Non Government Organisation
  (NGO) for surveyors. It is an umbrella
  organisation for national surveying institutions
  and groups.
• FIG links over 100 National bodies in areas such
  as Standards of Competence, Technical Standards,
  policy and legislative reviews.
• As many national NGOs represent individuals in
  their chosen profession, such as Land or
  Hydrographic surveying, it means that FIG
  ultimately represents the individual surveyor,
  not their commercial company or national
  surveying organisation.
• E.g. Individual links to APSG, American
  Petroleum Survey Group.
• FIG has a small central directorate of 3/4 people
  and functions largely on the sponsorship of
  national organisations who take turns in holding
  the presidency of the FIG. This is renewed every
  four years at the main FIG Conference.
• There are 9 Technical Commissions that cover the
  areas of surveying. Hydrography is Commission 4.

5
FIG Commission 4

• FIG Commission 4 (Comm. 4)
• Commission 4 is Hydrography and as part of the 9
  Technical Commissions it represents FIG at
  international level to link national bodies,
  often not the Hydrographic Office, in areas such
  as Standards of Competence, technical
  developments, training, policy and best practice.
• Mr Adam Greenland (NZ) is the current chair of
  Comm. 4. At the 2006 FIG meeting in Munich,
  Germany, the new Chair of Commission 4, will be
  appointed, Mr Andrew Layzack (Canada).
• It is Commission 4 that is represented on the
  International Advisory Board (IAB). This is
  agreed by way of bilateral Memoranda of
  Understanding (MOU).
• Commission 4 recognises the importance of the
  continued development of individuals and
  encourages national groups to co-operate in
  developing and sustaining skilled personnel.
• Next Meeting Munich Germany, October 2006

6
The International Advisory Board

• The international Advisory Board on the Standards
  of Competence of Hydrographic Surveyors and
  Nautical Cartographers.
• Meets annually and consists of FIG (4), IHO (4)
  and ICA (2) members

7
The International Advisory Board

• Two prime functions
• Review submitted courses (4-9 per annum)
• Update and Maintain Standards (IHO M-5, M-8)

8
The International Advisory Board

• The IAB recognises the importance of promoting
  Hydrographic courses. It further recognises that
  it is also important to encourage individuals.
  The role of the individual is a topic of its
  current strategic review.

The IAB ( FIG) Encourage Hydrographic Surveying
capability and competent individuals
9

• Building Capacity

10
BUILDING CAPACITY

• Building Sustainable Capacity
• Long term commitment of Sponsor Member State
  (MS), a Bank and Industry.
• Cooperative approach to the overall needs must
  allow gains by all but different expectations
  exist.
• How will the requirements be identified? S-55
  plus IHO and Financial Standards?
• Plans may not require full commercial support in
  all cases but CB may be the secondary goal by
  some groups who can gain access to funding.
• Areas include
• Education and Training
• Technical assistance with a Commitment to a
  number of years of infrastructure support
• Continuing development- Coverage, personnel,
  products
• Data collection and Data Management
• Technological transfer

11
SETTING THE COMMERCIAL SCENE

• PRIVATE INDUSTRY A disparate group of companies
  that undertake data collection and
  presentation Not a united community.
• ORGANISATION Several industry groups exist but
  FIG (Federation International Geometric) is most
  senior. Hydrography is Commission 4. Other
  informal groups of the Hydrographic Society and
  IMCA, the International Maritime Contractors'
  Association.
• ACTIVITIES Inshore, shallow water engineering
  tasks through many variations to deepwater,
  long-range, route surveys. Part of the portfolio
  is the more traditional Hydrographic capability
  for safety of navigation tasks. The Hunter
  Gatherers of data.
• TECHNOLOGY Varied and is not always the latest
  and so costs, quality and timescales differ.
  Assets may be hired or leased to fulfill the
  requirements, including the vessels.
• PROJECTS Undertaken as specific contracts.
  Traditionally the relationship is as a Client and
  Contractor, much less often a Partnership.
  Consequently relatively short term.

12
The Commercial Scene 2

• COMMERCE Activities to gain some financial
  reward. Outgoings less than Income!
• RISK A generally risk averse attitude is taken
  by commercial survey companies. They will not
  undertake projects with huge risk (in their
  assessment. This impacts on the type and quality
  of responses that may be received from an
  Invitation To Tender (or Request For Proposal).
• CONTRACTS Many varied examples and versions
  exist for Hydrographic Survey work including lump
  sums, Time and Materials, Co-operative
  arrangements with shared risk and shared use of
  products etc
• CURRENT STATUS The offshore Oil Gas industry
  is very busy and the resources, especially
  personnel and vessels, are in short supply.
  Commercial rates are at a high and there are some
  long term (3-5 years) contracts.

13

• THE COMMERCIAL SURVEY COMPANY

14
THE COMMERCIAL SURVEY COMPANY

• The Organisational Structure
• The Market Client Base
• The Process of gaining commercial work

15
THE LARGE SURVEY COMPANY ORGANISATION
16
The Small Survey Organisation
17
THE MAIN MARKET AREAS

• Hydrographic Surveys - Safety of Navigation,
  Ports HOs
• Geophysical 'Site' Surveys - Shallow Hazards
  for EP companies and Telecommunication
  companies
• Geotechnical Surveys - Sampling, coring and
  analysis
• Oceanographic Observations- Water level and
  currents
• Construction Work - Support to large
  Engineering projects especially during
  installation and confirmation of as-laid
  units for Engineering Groups
• LIDAR Surveys - Shallow water reconnaissance,
  HOs
• ROV Operations - Associated with Engineering and
  Construction work as well as annual
  maintenance and inspection programmes for
  various activities.

18
THE MARKET SECTORS

• SECTOR VALUE year 2000 2006 est.
• Oil and Gas 221m 345m
• Submarine Telecommunication Cables 47.5m
  30m
• Ports Harbours 182m 230m
• Hydrographic Surveys 261m 340m
• Others 22m 50m
• (Defence, Wind Farms, Engineering)
• Commercial contracts not Military
• TOTAL 685m 995m

19

• EXPERIENCES OF INDUSTRY

20
PREVIOUS INITIATIVES AND EXPERIENCES

• Previous Initiatives experienced difficulties
  such as too high an expectation of what they are
  able to get and for how much money that would
  cost.
• Government agencies tend to talk to each other ?
• What is achievable and reasonable.  Perhaps too
  much influence from academia and the equipment
  manufacturers sales teams. Short term goals
  dont meet CB criteria.
• MS do not all appreciate the costs of data
  collection and the value of the data once
  acquired. Thus any lack of understanding
  suggests a greater need for education programs to
  continue.
• Industry should provide a solution to a problem,
  not just the survey data. Often the problems are
  wider than technical challenges to the survey
  itself so Industry is not always best able to
  support studies.
• Regional Hydrographic Commissions to date have
  not really played a visible role to Industry,
  however. ??

21
COMMERCIAL EXPERIENCES

• Projects awarded for 1 year through to 5
  years Restricts investment
• Size of project work varies but 500k to 30m
• Activity closely monitored by MS Good, Short
  term Specific Goals
• MS lacks resources to monitor Less Good,
  Longer periods often Incomplete goals
• MS that award their own surveys usually do so to
  increase data collection. This often meets a
  short term objective. Does not create ongoing
  capability or a sustainable capacity unless part
  of a strategy of outsourcing and technical
  development.
• MS that have limited infrastructure and contract
  commercial companies can gain data but not always
  the products for release. Commercial
  difficulties will impact severely on this type of
  project.
• Collaboration between a group of MS with a
  competent HO in support offers an efficient way
  to derive short term gains AND meet longer term
  goals.
• Specialist capability sought by MS in support of
  deep water activities.

22
COMMERCIAL EXPERIENCES
Resources applied where it can make a difference
is fundamental to developing trust and a
relationship with the supporters of Hydrography
23
COMMERCIAL EXPERIENCES(2)

• Experiences some hazards
• Too optimistic and ambitious a plan involving too
  many parameters and changes
• New technology
• Training developed
• Update large scale charts and large areas.
• Failure to recognise the risks and limitations
• Poor progress and late delivery of items
• Change in financial environment
• Commercial organisation reviews its business and
  commitment
• Withdraws from further activity

24
COMMERCIAL EXPERIENCES(3)

• Good Experiences
• Short term specific goals stated by MS. E.g.
  deep water task, or area of survey for nautical
  charting improvement.
• Long term Contracts or at least a commitment to
  continue to offer annual contracts. This is
  typically as part of an HO strategy. If properly
  constructed will maintain good relationship with
  a commercial company.
• HO approves and appoints suitable QC and QA
  process.
• Industry have supplied both services and products
  to create a sustainable environment based on
  their experience. This needs added elements to
  secure technology transfer to the MS such as
  Training, an academic role, a wide range of use
  for the data.
• Collaboration between a group of MS with regional
  interests, funding, SoL interests or the
  environment.
• Summary Agree, commit to, maintain monitor a
  clear set of achievable goals.

25

• INFLUENCING PARAMETERS AND TENDERING

26
INFLUENCING PARAMETERS ON INDUSTRY

• Influencing Parameters in attracting commercial
  industry to Hydrography
• Location of work (for data collection)
• Size of contract
• Period of contract
• Profitability
• Technical risk in meeting specifications
• Benefits in Personnel, Market
• Stable programme of work with investment
  opportunities
• Personnel Must see organised structure and
  Continuing Development opportunities. Use Cat
  B/A then a Competency Scheme to measure value and
  progress.

27
SUSTAINING SERVICES

• Public-Private Partnerships can be created.
• Privatisation of a service could be considered.
• Concessions for operators and long term
  commitment could be linked.
• Examples of Port initiatives have demonstrated
  various ways in which the Stakeholders
  collaborate to create a win-win situation.
• There is no standard approach and model for
  Hydrographic services, however the World Bank
  produced a Port Reform Toolkit with useful
  guidance and strategies.
• See
• http//www.worldbank.org/html/fpd/transport/ports/
  toolkit.htm

28
SOURCE OF THE SPECIFICATIONS

• Full Scope of Work with Detailed Specifications.
• Scope of Work with Specifications, but including
  opportunity to Offer Variations.
• Scope of Work Provided with Specifications to be
  Provided by Contractor.
• Specifications created by one of the following
• Comprehensive dialogue with potential suppliers
• Reference to Academic centres of excellence
• Adoption of parameters claimed by equipment
  manufacturers
• Creation of Specifications from existing
  documentation
• Often the specific project timescales does not
  allow for extended bid preparation, variations
  and discussions to develop improved or amended
  specifications or clear investment strategy for
  the MS.

29
BID EVALUATION - PREPARATION

• The review process Technical/commercial/manageme
  nt.
• Previous work, pricing and experience - review.
• Contractual limitations - liabilities, exceptions
  etc.
• Taxes, Bonds, Scheduling, Currency.

Today
Yesterday
30
PREPARATION OF THE COMMERCIAL BID

• Consideration of any bid constraints
• Assessment of client specifications -
  suitability, alternatives etc.
• Assessment of insurance implications
• Assessment of risk
• Pricing, including the provision of survey
  vessels
• Invoicing program (credit, disputes, variations
  etc.)

31
THE INSURANCE PROBLEM
Who will be liable? For Salvage The
Environment To Re-instate Ops
32
PREPARATION OF THE TECHNICAL BID

• Review of the Specifications stated IHO, LINZ
  NOAA etc
• Consideration of methods E/S, MBES, SSS etc.
• Availability of suitable equipment.
• Availability of skilled personnel
• Data collectors, Processors and QC
• The influence of survey vessels and their
  suitability
• A large commercial investment that must be
  suitable
• for the proposed works and operations.
• Previous work and experience - review provide
  track records.

33
VARIATIONS

• The commercial importance of Variations.
• Reasons for Variations.
• The process for Variations - communication and
  agreement.

34
PRICING

• Direct Costs
• Indirect Costs
• Depreciation, Maintenance and Insurance
• Phased payments or scheduling
• The Profit Margin!

35
INFLUENCING CHALLENGES

• Observations
• The contracts all offer different commercial
  terms and conditions.
• The timescales of the work vary.
• The technology required and, sometimes, specified
  is varied.
• The actual data collection criteria may be
  different.
• Associated and related data collection or survey
  activities may be competing with or influencing
  the project.
• Conclusion
• There are not sufficient common standards to
  enable the Capacity Building initiative to be
  seen as an efficient process.
• Specifically history of development, timescales,
  funding, internal government processes and
  competition.

36
Member States
37

• BUILDING CAPACITY

38
Thoughts and Comments

• Projects need to be identified through some
  appropriate assessment. Is this ONLY an IHO/IMO
  task to determine who is the most needy?
• Well maybe but perhaps industry can provide a
  commercial perspective for gaining financial
  support. FIG Industry can help in accessing
  funding organisations. Definitely build on
  previous US, Australian, French and UK work.
• Preparation of the Project requirements should
  involve both the MS and a supporting (Peer?) HO
  from a Regional Hydrographic Commission.
• Why? Improves the timescale of the process.
• Industry should be prepared to do more than
  collect data Desk Study, Training, Equipment,
  Data Management. Why? Commitment
• Industry has resources and better utilisation of
  assets is always welcome. Industry will look to
  IHO FIG to create the environment.
• Industry must see the HOs or RHCs (IHO) as
  useful groups to collaborate with on identifying
  opportunities.

39
Thoughts and Comments

• Standards for Assessment and defining Projects
  are required.
• Clear processes to describe the chain of events
  and get industry involved as early as possible.
• FIG offers access to experienced and
  professional resources.
• Competition will remain and even increase
  between industry and HOs therefore a clear set
  of procedures and roles and responsibilities
  need to be set to guide MS, HOs and Industry.
• Why? Essential to have a united front for
  Financial Support Success. We must market
  Hydrography!

40
Thoughts and Comments

• IHO Offers mainly Technical Assistance
• The IHO may be seen as too Bureaucratic and
  institutional by Industry
• The IHO may be seen as too Technical by MS.
• Funding
• The EDB, World Bank etc. have many projects.
  Hydrography could be part of many more of them
  than is currently the case.
• My experience is money is assigned to clear
  projects with clear outcomes. e.g. Cruise liner
  safety, port infrastructures.
• We must identify possible projects that
  Hydrography could get support with. Not
  necessarily the main Project Goal. E.g.Resource
  Exploitation
• The Environment Pollution, Species preservation,
  recreation.
• Navigation SOLAS V must be exploited.
• Trade Commerce Shipping routes, ports
  harbours building trade
• and reducing Insurance costs.
• Recommendation Build a realistic Business Case

41
Capacity Building
42
How to Develop a CB Program

• Cooperation between stakeholders should enable
  the case to fund a Hydrographic survey project to
  be developed more easily.
• The review must expand upon the safety of life
  case and include social, environmental, political
  and institutional benefits and gains.
• The problems requiring solutions represent GAINS
  that may not be related to Capacity Building.
• The IHO could provide guidelines on the type of
  Project structure and management (technical
  project at least) in order to generate effective
  conditions for building capacity.
• IHO stewardship of the Capacity Building
  selection process and possibly the funding
  process also would facilitate the aim of
  collecting data and rendering charts etc.
• Marketing Hydrography and identifying possible
  projects in a wider context will aid this and MS
  HOs and Industry should not see each other as
  the competitor.

43
How to Develop a Program 2

• The Capacity Building initiative will take Time
• Must identify ways to speed up the process and
  deliver against expectations of Organisations,
  MS, IHO, Funding groups and industry.
• Technical and commercial liaison must be
  supported by a Financial element to gain funding
  and awarding work to suitable organisations or
  companies with clear incentives for results.
• Industry is NOT a White Knight
• Realistic goals and benefits must be identified
  and included in any proposals to 3rd party
  groups. Capacity Building will not happen for
  its own sake. Usually because the data is not
  recognised as being important enough.
• Industry is NOT a threat
• We (Industry) must also find partners and act
  in a cooperative nature through adaptation and
  evolving to meet needs.

44
Applications throughout the Survey Chain
The Survey market can be looked at as a chain or
sequence of events. Estimated value 500m pa To
make progress with Capacity Building the prime
areas of expertise should be recognised and
activity focussed.
Value Chain
Hydrographic Surveys
HOs
Survey Companies
IHO Stewardship Team

• Market Growth up to 10 of annual commercial
  activity 50m
• Industry can deploy technologies and develop
  certain alliances with Standards

45
Applications throughout the Survey Chain
The value chain could be developed to more focus
on the strengths of the stakeholders
Value Chain
Hydrographic Surveys
HOs
Survey Companies
IHO Stewardship Team

• To develop Capacity Building all participants
  need to gain something
• Standards, education and cooperation projects
  must continue

46
Summary (1)

• The IHO can take a firm and positive role to lead
  a true initiative that will make a difference.
• The IHO could unite the commercial sector by
  developing Standards and guidelines for adoption
  in supporting less well developed MS to meet
  their SOLAS V obligations.
• Industry will find ways to support the initiative
  and lobby for funding. IHO can help by being
  realistic and developing a relationship with the
  commercial sector.
• Achievable aims and common goals must be defined
  and stated.
• To create a Sustainable Capacity Building program
  the stakeholders must be represented when forming
  plans and from the commercial perspective..

47
Summary (1a)
48
Summary (2)

• Acknowledge the true cost of data collection
  surveys.
• Maybe Charts are no longer the correct
  deliverable?
• Consider more innovative approaches to Capacity
  Building through Marine Highways, and data for
  ENC/MIS and spatial database use.
• Generate Terms Conditions of contract to
  support investment and stability. This should be
  linked to an efficient review, tendering and
  award process to guide the MS and their Peer HOs
  using proven models.
• Keep In Touch with reality Industry and
  Funding groups.
• FIG is the nearest thing to a Commercial grouping
  of Industry that can, through its Commission 4
  Work Groups, support and aid the IHO in
  developing Standards and building relationships.

49
Actions (1)

• IHO and RHC
• Establish Strategy and set Timescales of goals.
• Educate, lobby and encourage MS.
• Develop KPI Standards for Assessment.
• Create Stewardship of CB programs and encourage
  RHCs to cooperate in developing programs.
• Gain much more access to Financial Expertise
  support. Not just Technical support advice.
• IHO could support a Regional Funding Activist to
  access Banks and international agencies.
• Continue with Industrial Liaison and create Case
  Studies to support claims for investment.
  Encourage the use of RHC events for dialogue with
  Industry.

50
Actions (2)

• Industry - FIG and Companies
• Build relationships with RHCs.
• Access Funding Groups to lobby the need to
  provide solutions to problems.
• Identify short term opportunities and goals
  within the Capacity Building initiative to meet
  funding requirements.
• Cooperate with academia and HOs to develop
  capacity for the long term.
• Industry is interested in follow-on activities
  for ports, construction etc. and should focus on
  that long term strategy.

51
Actions (3)

• Member States
• Be active in RHCs.
• Identify and secure sources of Funding in
  collaboration with IHO Industry.
• Identify realistic short term opportunities and
  goals within the Capacity Building initiative to
  meet funding requirements.
• Create a strategy for cooperation with partners
  so that Hydrographic capacity is sustainable in
  the long term.
• Industry is interested in follow-on activities
  for ports, construction, exploration etc. and so
  MS can focus on links to meet the long term
  strategy.

52
Conclusion

• Capacity Building is Possible ?
• IHO is a key.
• So too are you the Member States and your HO
  focal point.
• Industry and Academia each can play a key role.
• Dont be afraid to Outsource!
• Sustainable Capacity Building is also possible??
• Benefits for individuals, organisations and
  nations exist as long as the approach is a team
  effort to gain support and identify each of our
  interests.

53
Part 2 The Economic Benefits of Hydrographic
Products and Services
54

• Economic Benefits and Case Studies

55
OVERVIEW

• INTRODUCTION
• Part 1 Building Long Term Capability
• Part 2 The Economic Benefits of Hydrography
• What are the Products and Services?
• Who are the Stakeholders?
• What has been the experiences to date?
• What now?
• Starting Point There is no clear case for
  Hydrography based upon Chart sales and Products
  alone.
• Previously we heard how Chile and Croatia
  generate only 18 and 40 respectively of their
  costs through sales.

56
MS HO Products and Services

• The traditional products and Services of a
  typical MS HO are considered to be
• Paper Charts, Electronic Charts, Notice to
  Mariners, Tides and tidal streams, Sailing
  directions etc
• Various MS are now expanding and developing
  services to provide information to non navigation
  users through a national spatial data
  infrastructure.
• If the full economic benefit of Hydrographic
  services is to be realised it is important to
  extend the provision of services across as many
  economic sectors as possible.
• This requires that the various Stakeholders are
  identified and they become engaged in the use of
  data.
• The duty of care imposed upon Hydrographic
  Offices requires the use of appropriate modern
  equipment.

57
Stakeholder Benefits

• Who exactly are the Stakeholders? These may
  include
• Commercial Shipping Cruise Operators
  Freighters
• Ports Harbours Customs Excise, import
  and export businesses, road, rail and freight
  infrastructure and those that rely upon
  trade.
• Environmental groups
• Nearshore fish farming Permitting, management
  and control
• Coastal Zone Managers and Protection of the
  marine environment
• effects and impacts Fishing, Tourism and
  de- salination.
• Hydrographic information facilitates
• delineation, establishment, administration and
  sustainable development of national maritime,
  coastal zones and resources.
• SOLAS requires contracting MS to provide
  Hydrographic services

58
Stakeholders Commercial Shipping

• The average growth in the region was 5.5 GDP
  over the 2000 - 2005 period.
• MS that operate "Open Registry" must maintain
  their reputation.
• The value of trade by ship is increasing at 5
  per annum.
• The region of South, Central America and the
  Caribbean account for less than 4 of world's
  vessels (1000 Grt).
• With many island states, the majority of trade
  is by sea (over 95) and by foreign vessels.
• Vessel size is limited by the environment however
  the world trend is to scale up the vessels and
  reduce the unit cost of cargo.
• The region is a net importer of goods with
• 346bn exports and 400bn exports.
• In addition their respective rates of growth
  are
• exports 1.4 whilst imports 14.4
• The area is dominated by the US economy and many
  trades, particularly in the Caribbean are to US
  ports.

59
Stakeholders Commercial Shipping

• The average age of the fleet of Central American,
  South American and Caribbean states is over 19.7
  years. cf the world 12.3 years.
• The investment in new vessels will create a
  greater need for hydrographic products and
  services
• Larger dwt with longer hulls and deeper
  draughts
• Dredging and charting services
• Faster, more efficient at loading/unloading
• Suitable routes and management schemes
• Newer navigation and bridge systems
• Accurate charting and navigation markers to
  compliment the GPS, AIS and other
  technologies.
• The majority of trade is by sea (95) and by
  foreign vessels.
• There are only a few large carriers and they
  require suitable products services to support
  their commercial plans.

60
Stakeholders Passenger Cruises

• There is a huge dependence upon passenger
  Cruises
• Worldwide over 11.5m passengers embark on
  cruises, of which over 8m are US citizens.
• Over 4.8m passengers depart Florida each year.
  Another 1m depart from the Gulf of Mexico
• US Passenger Cruises generate 32bn per annum of
  which 16bn is in indirect costs such as shore
  trips, flights, hotels etc.
• The top performing economies of the Caribbean
  rely upon tourism for their income British
  Virgin Islands 45
• Cayman Islands 70
• Cruise Operators have taken upon themselves to
  have Hydrographic surveys carried out to ensure
  safe havens and anchorage in certain places.
• This income must be supported and encouraged.
  Hydrographic surveys could aid this important
  activity in the region.
• It is a GROWTH industry!!

61
Stakeholders Ports and Harbours

• Hydrographic charts are an essential part of the
  MS transport infrastructure.
• Ports seek
• Economic transportation by reduction in costs,
  easier routes and fuel and time.
• This can lead to insurance costs and claims
  reduced.
• Suitable anchoring zones close to Port.
• Commercial Operations
• A large cargo vessel can cost approx. 1200 per
  hour.
• Competitive nature of the international trade
  routes with Ports at their hubs.
• Specialist Port services are required to attract
  larger vessels.
• Investment is key and MUST include safe passage,
  by hydrographic surveys, to ensure a sustainable
  capability.

62
Stakeholders - Ports and Harbours

• Case Study Guyana
• The ports of Demerera and Berbice benefit from
  regular surveys that monitor the presence of
  fluid mud or "Sling-mud".
• Through repeated surveys vessels of 9m draft
  transit the delta area with only 6-7m of clear
  water, the rest being mud.
• This region should take note of others and the
  competition
• At the 2001 Pan-African Ports Conference a
  declaration stated
• The conference
• "Reaffirms the need for African states and sub
  regional economic groups to adopt concerted
  development policies on transport infrastructure
  in general, and ports in particular (ports handle
  90 of the continent's trade), in view of their
  role as trade hubs"
• Such initiatives require sustained and modern
  Hydrographic services.

63
Stakeholders Ports and Harbours

• The Ports act as a form of Hub for the
  transportation of goods.
• Ports need to be competitive.
• The growth in trade of a MS is directly linked to
  its maritime trade growth which in turn is
  influenced by the ability of Ports and Harbours.
• Freight costs represent over 10 of the value of
  goods.
• New container and inter-modal transportation
  developments need the basis of good hydrographic
  products and services.
• Reduced speed, or increased channel distances
  contribute to costs and a balance for the Port
  between improved passage and their maintenance
  costs needs to be achieved.

64
Stakeholder Investments Ports and Harbours

• The Ports of South and Central America and the
  Caribbean do receive investment. In recent years
• Brazil 100m for port development
• Chile 110m for port development
• Jamaica 10m port infrastructure expansion
  works.
• Columbia 20m port works
• Brazil 800m for development of inland
  waterways
• Dominican Rep. 290m port development works
• Panama 600m port development works
• This investment must be supported by suitable
  survey and safe charting.

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Stakeholders Exploration Companies

• The MACHC region is set to experience an increase
  of exploration and subsea field developments
  beyond 2007.
• The price of a barrel of oil is predicted to
  remain relatively high and some pundits have
  predicted 100 and as much as 300. Even at 40
  the need for proven reserves remains high.
• The demand from the Far East continues to grow
  and major finds are less common.
• The Caribbean and Central American region offers
  potential to direct some of the revenue into the
  infrastructure to secure stability in the long
  term. For Hydrography this could be a direct link
  from the exploration and production activities to
  funding and supporting an HO capability.
• Now the interest is often in deep water (gt300m)
  and therefore the products and services deemed of
  value are data sets including tides, currents,
  seabed topography and classification.
• Safe port and harbour facilities are very
  important as part of an infrastructure to support
  the 25 years of field production.

66
Stakeholders Coastal Zone Managers

• The benefits to such a group of diverse users of
  data and information will be difficult to
  quantify and predict.
• Aggregate mineral extraction, the licence to
  develop fish farming and recreational facilities
  all require analysis to evaluate their impact on
  the environment and the local coastal area.
• Fishing activity often support local and national
  requirements but may be seasonal or prone to
  weather conditions. The safe passage, avoidance
  of hazards and threats to equipment as well as
  ease of landing catches must be linked to the
  Hydrographic products and services.
• The ease and distribution of Hydrographic
  information supports and aids these activities.
• Policy decision making processes can be confident
  of reliable inputs and less risk of poor
  implementations of strategy.

67
Stakeholders Coastal Territorial Seas

• The benefits to a MS of establishing and
  maintaining its territorial waters is fundamental
  to many of their citizens who rely upon safe
  passage, resourceful maritime seas and clear
  demarcation of limits and boundaries.
• In the Caribbean region and central and south
  America there have been a number of boundary
  disputes and challenges over the years.
• Disputes such as these can indicate that a nation
  does consider its maritime area as a strategic
  and commercial asset.
• Hydrography of course can support claims to
  territory by providing the all important survey
  information.
• This information should provide the basis for
  economic and commercial management of the
  maritime resource.

68
Stakeholders Environmental Groups

• The importance of good quality, reliable and up
  to date Hydrographic information is a benefit to
  many environmental groups who rely upon this for
  strategic decisions.
• Various groups and organisations exist and the
  role of an HO is to empower and engage these
  authorities and organisations such that they use
  and value the information.
• Heritage groups with interests in archaeology,
  ship wrecks and the increasing need for waste
  management.
• The following is an extract from the Irish
  National Seabed Survey that commenced in 2000 and
  engaged in many groups with interests in marine
  and maritime information.

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Stakeholders Benefits and Customers

• The Irish National Seabed Survey states
• "Virtually everyone involved in offshore activity
  will benefit from the results of this survey -
  policy makers, industry, engineering, geologists,
  biologists, research groups e.g. universities,
  heritage and protection. The maps will be useful
  in indicating the likely distribution, extent and
  location of potential mineral deposits (e.g.
  sands, gravels, gas hydrates) or potential
  hydrocarbon indicators. Fish habitats are often
  controlled by the nature of the seabed, and
  fishery interests seek information which makes
  fishing more economical while minimising the
  environmental impacts of trawling.
• In addition, baseline maps will assist in
  studying natural hazards as well as global
  environmental changes. Ocean engineering
  including cable and pipeline laying (e.g.
  telecommunications or power), and the siting of
  rigs and offshore installations also will benefit
  greatly from the results of the survey. Survey
  results will also be useful to those with
  interests in offshore aquaculture, navigation,
  deep sea cold water corals, heritage (including
  shipwreck identification), renewable energy
  developments and waste management."
• See http//www.gsiseabed.ie and Irish National
  Seabed Survey

70
Economic Uses of Hydrographic Products

• In summary many traditional users require up to
  date and reliable information for decision making
  purposes.
• Safe passage of cargo and passenger vessels.
• Commercial fishing including policing fishing
  zones.
• Recreational fishing and sailing including power
  boats.
• Mineral exploitation.
• Pollution Prevention.
• Safety of Life at Sea.
• Establishing and policing Exclusive Economic
  Zones.
• Asserting any claims to territory.
• Scientific research.
• Complying with International Obligations

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Supplementary Economic Benefits

• Commercial fisheries sector resource location,
  economic zone maintenance, regulatory enforcement
  and reduced equipment losses.
• Definition and maintenance of sovereign zones.
• Enhanced coastal resource management.
• Assistance in the exploration of minerals.
• Improved emergency response.
• Contributions to national defence.
• Assistance to recreational boating, fishing and
  leisure.
• Overall environmental protection.
• NOTE Overall it should be recognised that
  national Hydrographic programmes are regarded as
  being a "Public Good". The necessary level of
  services will therefore not be supplied by market
  forces alone.

72
Secondary Stakeholder benefits

• Each MS should evaluate and consider the
  potential for new markets and uses of the data
  and information.
• Commercial markets offer greater potential reward
  than standard military and defence orientated
  requirements.
• The potential to develop new markets in response
  to global demands such as
• Tourism
• Recreational water activities
• Aquaculture
• Mineral extraction
• Economic social and legislative benefits? How do
  we establish and define these????

73
Economic Benefits

• An APEC Transportation Working Group Study (2002)
  recommends a nation to
• Carry out an audit of Hydrographic department to
  identify areas that need attention.
• Carry out an economic analysis for the
  hydrographic requirements. (a model was developed
  to undertake this type of activity)
• Ensure that the necessary development of the
  Hydrographic Office is included in any national
  or ministerial development plans.
• Ensure five year plans exist to sustain national
  survey and charting.
• Review Hydrographic work practices and improve
  cost effectiveness.
• Review the institutional and co-ordination
  arrangements to assess the benefits of formal
  agreements.

74
National Challenges

• The UN undertook a study in 1989 and although
  relatively old indicates some institutional areas
  that need to be tackled
• Delays in processing permissions, clearances and
  accessing resources due to partner organisations
  (Customs, port authorities, government
  departments)
• Outdated procedures and inadequate human
  resources
• Foreign exchange problems in payment transactions
• These are important barriers that must be tackled
  in any strategic plan to address a sustainable
  capability or capacity.
• Hydrography Hydrographic Surveying is no
  exception.

75
CASE STUDIES

• Lets review a couple of examples where the
  benefits of the Hydrographic effort has been
  reviewed and where co-operation, collaboration
  and investment has made an impact on the
  Hydrographic status.
• Australia
• Bangladesh
• Canada
• PNG
• Philippines
• Red Sea Area
• United States

76
CASE STUDIES - Australia

• The Royal Australian Navy's 1992 study to assess
  the economic benefits of the Australian
  Hydrographic Programme.
• Exact figures on economic benefit were not
  possible. Benefits that flow from the
  Hydrographic Programme are such that "there can
  be no doubt they are very large".
• Including efficient passage of shipping,
  protection of the environment, safety of life at
  sea and the management and exploitation of marine
  resources.
• To the nation efficient shipping is vital and
  suggests the initial investment to reduce
  transport costs shall create a benefit of 7x the
  investment.
• The advent of GPS requires that existing charting
  must be updated to keep pace with accuracies and
  modern methods.
• "what is beyond reasonable doubt..up-to-date
  charts has a benefit ..that greatly exceeds the
  cost".
• The Hydrographic Programme is a Public Good.
• The traditional naval activity should be reviewed
  given the wider benefits.

77
CASE STUDIES - Bangladesh

• Bangladesh received assistance from SHOM and its
  associate department NAVFCO (the French naval
  Company for Training and Advice). Over 20
  countries have received support and assistance.
• The aim of the HYDROBANDLADESH project was to
  develop the Hydrographic capability and provide
  modern equipment to enable the creation of
  suitable Nautical Charts.
• Phase 1
• Initial Training
• Supply of Equipment
• In-country technical assistance for support
  purposes
• This led to the completion of an up to date
  Nautical Chart (1997)
• Phase 2
• Supply of GIS, systems and cartographic training
• Supply of resources for essential route surveys
  with Side Scan Sonars
• Modernisation of the Bangladesh Training School
• A small team to provide in-country training and
  technical assistance

78
CASE STUDIES - Canada

• Canada undertook a review of the cost benefits of
  the Canadian Hydrographic Service (CHS) in 1992.
  The main economic sectors identified were
  Commercial Shipping, Fishing, Recreational
  Boating, National Defence, the Arctic and the
  Environment.
• The charts can be compared to roads and their use
  for transportation. Better roads (charts)
  better, safer, quicker, cheaper transportation.
• The annual cost of the CHS were estimated to be
  in excess of 30m and on this basis the benefits
  to the above sectors were over 450m on the basis
  of the value of the charting.
• This gives a cost benefit ratio of 10/1.
• Other users and sectors not included would also
  be likely to benefit
• Government agencies involved in coastal
  management, mineral exploration, construction
  engineers and ocean scientists.
• The cost benefit analysis does not evaluate any
  alternative costs for the replacement or
  alternative source of survey data (Defence,
  Public and Private charting).
• On review Benefits may be increased by expanding
  the user community, controlling costs and by
  reducing net costs.

79
CASE STUDIES - Canada

• On review of the Study a number of points may be
  raised.
• Benefits may be increased by
• expanding the user community,
• controlling costs and by
• reducing net costs.
• Expanding benefits increase the user community
  through better access to the information and
  products. Also collect different data sets.
• Controlling costs a sustainable Hydrographic
  capability must manage and control costs in line
  with agreed budgets and long term targets.
• Reducing costs the Net costs could be reduced
  if federal and government departments and
  agencies collaborated and co-operated and
  International agreements were established.

80
CASE STUDIES - Indonesia

• The survey and definition of the Indonesian
  coastline
• Equip 3 survey vessels with modern systems
• Install and monitor 25 tidal stations
• Install and operate a real time DGPS service
• The establishment of a National Marine Resource
  Database
• Involving 3 survey vessels, Airborne Laser
  systems, 90 expatriates in the processing Centre
  and on the vessels this was an ambitious plan.
• Caution should be taken with such ambitious plans
  to ensure that the funding is secured and that
  all parties are committed to the goals.
• Late delivery of products and poor cost control
  or management must be avoided.
• The reputation for good co-operation and of
  successful outsourcing ventures is important for
  Hydrography.

81
CASE STUDIES - Philippines

• A Study for the APEC Transportation Working Group
  "An Analysis of the Economic Benefits of the
  Provision of Hydrographic Services in the APEC
  Region" in 2002 offered some insights
• The issue of the incomplete status of a number of
  APEC MS surveying and charting.
• The entire Hydrographic service costs may be
  justified from the benefits accruing by one
  market sector Commercial Shipping.
• The analysis method used Commercial Shipping and
  deduced that the current expenditure of 3.5m
  could be increased to 5.9m and the return on
  revenues will be still be at least 12.
• The analysis model can be adopted for other MS to
  evaluate and assess their cost to benefit ratio.
  
• The Philippines is an Archipelagic state and
  therefore experiences a considerable level of
  shipping which coastal West African states may
  not. The model should be adjusted to cater for
  the other market sectors.

82
CASE STUDIES - Red Sea Area

• An example of international co-operation by
  several MS and the "stewardship" of the
  Hydrographic programme by an external HO.
• The UKHO supplied expertise and guidance in the
  assessment and the setting of priorities. Also
  in setting the specifications and assessing the
  tendered proposals.
• Data collection was awarded via a open
  contracting process.
• A commercial company was appointed and completed
  the survey.
• This project demonstrated the positive
  collaboration of several MS Stakeholders in a
  data collection programme and the assistance of a
  leading HO to guide and advise in the process. ?

83
Summary

• Most economies have only small numbers of skilled
  and experienced survey and cartographic
  personnel.
• This shortage limits many Member States in
  establishing HO's.
• And Limits HO's in completing their tasks on
  schedule.
• Several economies are improving the cost
  effectiveness of Hydrographic services through
  technology, utilisation of vessels and
  outsourcing.
• Co-operation within regions are producing
  benefits in these areas.
• Increased regional co-operation should therefore
  be considered where it is practical.

84
Summary

• There is a lack of experienced personnel
• Large costs are associated with Hydrographic
  services
• Material resources are often in very limited
  supply but investment in new systems and
  technologies represent high quality.
• Outsourcing represents a potential solution to
  the above issues and should be evaluated as a
  partial if not complete solution in certain
  tasks.
• Co-operation on an international basis is also
  recognised as being of importance. FIG Commission
  4 is working to support and engage Stakeholders
  in Hydrographic activities.
• Summary Improved cost effective use of resources
  and the sustained need to complete Hydrographic
  surveys must be used to convince fund-holders to
  invest.
• Products may be achieved as well as developing a
  sustainable Hydrographic capability.

85
REFERENCES

• UNACTD Reports Various
• UN Maritime Transport Reviews 2000, 2002, 2003,
  2005
• Douglas Westwood and Associates.
• Journal of Transport Economics and Policy, 1997.
• NOAA private correspondence.
• APEC Study The Analysis of the Economic Benefits
  of the provision of Hydrographic Services, 2001.
• Inter and External Trade of EU Monthly
  Statistics, 2004 2005
• Shipping News
• Ports and Harbours
• Container News
• International Cruise Liner Association
• Pictures Managed by PICASA2 http//www.google.co
  .uk/intl/en/options Picasa