Building Capacity & Capability :
A Commercial Perspective
FIG Commission 4: Hydrography
Gordon Johnston
Hydrographic Professional Services
gordon.johnston1@orange.net
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
2
What is FIG?
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.
•
•
4
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.
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:
5
Munich Germany, October 2006
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
6
The International Advisory Board
Two prime functions:
Review submitted courses (4-9 per annum)
Update and Maintain Standards (IHO M-5, M-8)
7
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
8
Building Capacity
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
10
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.
11
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 (35 years) contracts.
12
THE COMMERCIAL SURVEY COMPANY
THE COMMERCIAL SURVEY COMPANY
The Organisational Structure
The Market & Client Base
The Process of gaining commercial work
14
A SURVEY COMPANY ORGANISATION
15
The Small Survey Organisation
Director/
Survey Manager/
Sales & Marketing
Field Survey Crew
Party Chief
Surveyor
16
Office Technical
Support &
Engineering
Engineer
Administration/
Accounting
THE MAIN MARKET AREAS
Hydrographic Surveys Safety of Navigation, Ports & HO’s
Geophysical 'Site' Surveys - Shallow Hazards for E&P
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, HO’s
ROV Operations
Associated with Engineering and
Construction work as well as annual
maintenance and inspection programmes for
various activities.
17
THE MARKET SECTORS
SECTOR
VALUE
Oil and Gas
Submarine Telecommunication Cables
Ports & Harbours
Hydrographic Surveys
Others
(Defence*, Wind Farms, Engineering)
* Commercial contracts not Military
TOTAL
18
year 2000
2006 est.
$221m
$47.5m
$182m
$261m
$22m
$345m
$30m
$230m
$340m
$50m
$685m
$995m
EXPERIENCES OF INDUSTRY
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 don’t 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………. ☺?
20
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.
21
COMMERCIAL EXPERIENCES
Resources applied
where it can make
a difference is
fundamental to
developing trust
and a relationship
with the supporters
of Hydrography
22
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
23
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.
24
INFLUENCING PARAMETERS AND TENDERING
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.
26
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
27
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.
28
BID EVALUATION - PREPARATION
The review process – Technical/commercial/management.
Previous work, pricing and experience - review.
Contractual limitations - liabilities, exceptions etc.
Taxes, Bonds, Scheduling, Currency.
Today
Yesterday
29
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.)
30
THE INSURANCE PROBLEM
Who will be liable?
For Salvage
The Environment
To Re-instate Op’s
31
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.
32
VARIATIONS
The commercial importance of Variations.
Reasons for Variations.
The process for Variations - communication and
agreement.
33
PRICING
Direct Costs
Indirect Costs
Depreciation, Maintenance and Insurance
Phased payments or scheduling
The Profit Margin!
34
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.
35
Member States
36
BUILDING CAPACITY
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 HO’s or RHC’s (IHO) as useful groups to
collaborate with on identifying opportunities.
38
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 HO’s therefore a clear set of procedures and
roles and responsibilities need to be set to guide MS, HO’s
and Industry.
Why? Essential to have a united front for Financial Support &
Success. We must market Hydrography!
39
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:
Navigation:
Trade & Commerce:
Recommendation:
40
Pollution, Species preservation, recreation.
SOLAS V must be exploited.
Shipping routes, ports & harbours building trade
and reducing Insurance costs.
Build a realistic Business Case
Capacity Building
41
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 HO’s and Industry should not
see each other as the competitor.
42
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 it’s 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.
43
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
Planning
Funding
Funding
Data
Data
Collection
Collection
QC
QC
Data
Management
HO’s
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
44
Applications throughout the Survey Chain
The value chain could be developed to more focus on the
strengths of the stakeholders
Value Chain
Hydrographic
Surveys
Planning
Funding
Funding
Data
Data
Collection
Collection
QC
QC
Data
Management
HO’s
Survey Companies
IHO Stewardship Team
 To develop Capacity Building all participants need to gain something
 Standards, education and cooperation projects must continue
45
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…..
46
Summary (1a)
47
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 HO’s
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 it’s Commission 4 Work Groups, support and aid the
IHO in developing Standards and building relationships.
48
Actions (1)
IHO and RHC
1) Establish Strategy and set Timescales of goals.
2) Educate, lobby and encourage MS.
3) Develop KPI & Standards for Assessment.
4) Create Stewardship of CB programs and encourage
RHC’s to cooperate in developing programs.
5) Gain much more access to Financial Expertise &
support. Not just Technical support & advice.
6) IHO could support a Regional Funding Activist to
access Banks and international agencies.
7) Continue with Industrial Liaison and create Case
Studies to support claims for investment. Encourage
the use of RHC events for dialogue with Industry.
49
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 HO’s 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.
50
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.
51
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.
Don’t 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.
52
Part 2: The Economic Benefits of
Hydrographic Products and Services
Economic Benefits and Case Studies
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.
55
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.
56
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 desalination.
Hydrographic information facilitates:
delineation, establishment, administration and sustainable
development of national maritime, coastal zones and resources.
SOLAS requires contracting MS to provide Hydrographic services
57
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.
58
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.
59
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!!
60
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.
61
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.
62
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.
63
Stakeholder Investments: Ports and Harbours
The Ports of South and Central America and the Caribbean do
receive investment. In recent years:
Brazil:
Chile:
Jamaica:
Columbia:
Brazil:
Dominican Rep.
Panama:
$100+m for port development
$110m for port development
$10m port infrastructure & expansion works.
$20m port works
$800+m for development of inland waterways
$290m port development works
$600m port development works
This investment must be supported by suitable survey and safe
charting.
64
Stakeholders: Exploration Companies
The African region is set to experience an increase of over 100% of
subsea field developments in 2000 to 2005.
The price of a barrel of oil is predicted to remain relatively high and
some pundits have predicted $100 and as much as $300.
The demand from the Far East continues to grow and major finds
are less common.
West Africa offers tremendous potential and should 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 (>300m) 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.
65
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.
66
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.
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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
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http://www.gsiseabed.ie and Irish National Seabed Survey
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.
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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????
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Economic Benefits
An APEC Transportation Working Group Study (2002) recommends a
nation to:
1. Carry out an audit of Hydrographic department to identify areas
that need attention.
2. Carry out an economic analysis for the hydrographic
requirements. (a model was developed to undertake this type of
activity)
3. Ensure that the necessary development of the Hydrographic
Office is included in any national or ministerial development
plans.
4. Ensure five year plans exist to sustain national survey and
charting.
5. Review Hydrographic work practices and improve cost
effectiveness.
6. Review the institutional and co-ordination arrangements to
assess the benefits of formal agreements.
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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.
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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
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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.
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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
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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.
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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.
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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.
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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.
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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. ☺
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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.
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.
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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.
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REFERENCES
UNACTD Reports: Various
UN Maritime Transport Reviews 2000, 2002, 2003
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
Pictures Managed by PICASA2:
http://www.google.co.uk/intl/en/options & Picasa
Powerpoint by Bill Gates
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REFERENCES
UNACTD Reports: Various
UN Maritime Trade Reports 2000, 2003
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
Pictures Managed by PICASA
Visit url =
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http://www.google.co.uk/intl/en/options
then scroll down to Google Tools, Picasa
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