Strategic Asset Management for Ports and Waterways: An Imperative Whose Time Has Come

Transcription

1 Strategic Asset Management for Ports and Waterways: An Imperative Whose Time Has Come TRB 2015 Summer Meeting and Conference; June 24-26, 2015 AGENDA Erik Stromberg, Stromberg Associates: Port Industry Overview and Lessons Learned Patricia Gaynor, Program Manager, Design Engineering and GIS, Maryland Port Administration: Asset Management at the Port of Baltimore Bob Leitch, AM Program Director, USACE: Implementing Asset Management for the USACE Business Line Next Steps Applied Research, Continuing Education, Networking

2 Strategic Asset Management Introduction ISO Definitions Asset management is the coordinated activity of an organization to realize value from assets. Asset management is the link that connects strategic and business goals to the physical asset portfolio.

3 Why Is SAM A Management Imperative? Aging Infrastructure Operating costs too high and too often hidden Deferred maintenance--substantial but uncertain scope, cost and impact Preventative maintenance program = run-to-failure Inadequate Capital Resources: Scarce public capital, Cautious private capital, and Inadequate internal resources

4 Why Is SAM A Management Imperative? Business processes Asset data: Deficient, especially life-cycle position/variable definitions/not transparent Information systems do not support investment decisions Uncertain level-of-service requirements Capital planning ad hoc prioritization does not comprehensively address strategic risks across the organization Leaseholder responsibilities: Poorly defined/not specified/not monitored Human resources: Retiring Boomers -- loss of institutional knowledge

5 Maturity Pyramid 14

6 SAM Business Process Model (Cardno)

7 Port Metro Vancouver Gary Tosh, Infrastructure Asset Management Coordinator A shift from being reactive to proactive: What will our annual capital maintenance expenditures be for the next 10 years? What are our priorities for capital repairs and why? What are the risks if we defer these repairs?

8 Port Metro Vancouver Lessons Learned Create an AM Policy AM cannot be optional AM is long-term and buy-in from all levels is needed Prioritize assets Start with business critical assets Learn from those and proceed to less critical assets Identify critical data You will never have all the ideal data Identify and connect with resources No need to reinvent the wheel

9 Port of Portland Strategic Asset Management Art Spillman Sr. Mgr. Facilities, Assets, and Infrastructure

10 Approach Secure management support Keep it simple Prioritize asset data collection Align with existing CMMS Ensure the right stakeholder involvement Data collection - Maintain flexibility for future data migration Inform the Capital Improvement Program Strategic Asset Disposal (SAD)

11 What Can Go Wrong? Over collecting data Taking on everything at once Tracking assets at the wrong level Not including the right stakeholders Believing that software will define your asset management program

12 Spreadsheet of Dreams Data collection focused on assets at the end of life Why When and Consequence of Delay Tracking/Planning condition assessments Initiate capital projects Knowledge is power only if man knows what facts not to bother with." -- Robert Lynd, Irish writer

13 Ports of Seattle and Tacoma David Amble, Seaport Asset Manager, POS Rick Unruh (tentative), Project Manager, POT

14 Port of Seattle/Tacoma Northwest Seaport Alliance David Amble Tacoma initiated an asset management program in 2011 Seattle (Seaport Division) began looking at the issue in 2010, and initiated a yards, docks, and building asset program in 2013 Seattle Airport Division (operationally focused) has it s own AM program, focusing on runways and terminals Inventory and assessment of seaport assets at the system level pilings Seattle and Tacoma currently are establishing an alliance to manage container terminals in Puget Sound. A multi-tier approach Identifying assets from a top down/bottom up approach. Documenting asset conditions at the location and system level Reviewing best practices and tools useful for managing assets

15 Key Issues for Success Seattle/Tacoma A port s terminal management model influences how asset management is accomplished: Terminal management model (landlord port versus direct operations) Lease agreement terms for each terminal The program should not be a third-rail of capital development and financial management; it is an accounting tool to drive decision making. Need to have a champion Need to have a common understanding of what the program entails and to what level of asset it should manage to.

16 San Diego Unified Port District Cid Tesoro, Major Maintenance Program Manager

17 Value Difficulty D2#

18 D2#

19 D2#

20 Port of Houston Authority Journey to SAM Tom Heidt, CFO

21 PHA Strategic Asset Management Goals 1. Financial stability through enhanced understanding of asset conditions, better forecasting of life-cycle costs, reduced frequency of emergency repairs and the achievement of acceptable Returns on Assets (ROA); 2. Modernization of the Port s assets based on strategic, informed and timely reinvestment decision-making; 3. Customer satisfaction and improved competitiveness through preservation of mission-critical and high-margin asset values, service levels and operating efficiencies; 4. Organizational alignment through improved internal processes and a shared understanding of asset reinvestment priorities; and, 5. Reduced risk of loss and improved life safety through better preventive maintenance, early hazard detection and timely corrective action. 6. Develop policies and procedures that allow the PHA to more effectively capture asset life cycle costs, enabling asset planning, budgeting, and decision making processes.

22 Lessons Learned Develop an asset management plan (road map) addressing: Policy statement Clear, measureable goals, Timelines, critical paths, success criteria, Budget and annual review process Senior leadership engaged at beginning and throughout Demonstrate value--find and deliver early and ongoing successes Keep all departments engaged understand resistance and its root causes--don t ignore Be skeptical of big (expensive) engineering and IT solutions SAM, at its heart, addresses business process: making better decisions Asset management will neither get cheaper nor easier over time. Negative consequences of NOT getting started will ONLY get worse.

23 Next Steps Ongoing education---aapa, TRB, FHWA webinars, conferences Networking formal and informal Research Resource-effective program development for gateway ports and regional ports Cost-effective predictive modeling