Publish and Present
Owners of aging but operating marine terminals frequently face a decision about how to best maintain their facility over a time horizon that is of interest from a business perspective. Decision making requires evaluation of several options that lie on a continuum. At one extreme, the owner continues to repair and remediate existing structures and equipment. This involves a relatively low annual expenditure together with minimum operational downtime and minimum loss of revenue. However, the scope and frequency of the required repairs and remediation increases as time passes. Detailed annual condition inspections are also required to continuously monitor the rate of deterioration. At the other extreme, complete reconstruction of the structures and equipment is undertaken; this generally requires the highest initial capital outlay and also results in the greatest interruption of operations and loss of revenue. However, the owner receives a dependable facility and the need for future condition inspections and maintenance activities are minimized. As an alternate to the extremes, specific structural elements or pieces of equipment may be selected for reconstruction or replacement, with on-going repairs and remediation of other elements.
The method developed allows a reasoned comparison of selected options along the continuum over the time horizon of interest. Based on the information gathered and the analysis undertaken, the predicted expenditure and downtime in each individual year over the period of interest and for every option under consideration is developed and presented for comparison.
Owners typically input the results into their own accounting and financial planning systems to identify the preferred option based on their internal business practices and considerations.
This paper presents a logical method to compare three options; maintenance, partial reconstruction and complete reconstruction, to make informed decisions on the maintenance of operating facilities.