MEGA-SHIP Salvage Lessons Learned from the COSTA CONCORDIA A serious incident involving one of the new MEGA-Ships could well be a massive one-off project like the COSTA CONCORDIA. None of the major salvage contractors have the in-house resources to properly manage a MEGA-SHIP salvage like the COSTA CONCORDIA. Salvors are like Special Ops Teams • Blend in with the indigenous population • Use local resources • Live off the land In MEGA-SHIP Salvage the Salvors becomes more like a regular Army… … and requires a Pentagon ashore to drive it. COSTA CONCORDIA ARMY • Salvage Masters • Project Managers • Operations Team • • • • • • Procurement Logistics Transportation Hotels Food / Per diem Accounting • Health & Safety • Environmental Protection • • • • • • • • • • Engineering Team Engineering Management Vessel Management Media Management IT Management Offshore Drilling Ops Steel Fabrication Transport & Installation Planning & Procedures Heavy Lift Ops What went right? • Fabricated, transported and installed 24,000t of steel • Installed 13,000 m3 of grout • Parbuckled the wreck • Refloated the wreck • Towed and delivered the wreck to Genoa What went wrong? • Costs exceeded unrealistic expectations ‒ Underestimated to scope of work ‒ Tender process too short ‒ Unrealistic deadlines in the contract What can we do next time? • Modified tender process • Improved project management • Invest in new tools The Tender Process • Special Council ‒ Owners ‒ P&I Club / IG / Reinsurers ‒ Port State ‒ Salvage Contractors ‒ Third-party experts as required The Tender Process • Emergency response as usual ‒ Pollution Control / Fuel Removal • Liaison with Port State • Tender out to all potential contractors The Tender Process • The Council, including all salvors, selects the best plan • The Port State approves the plan • Salvage Contractors submit bids on the agreed plan Advantages • The best plan can be develop & agreed by experts from across the industry • All stakeholders participate and know what is going on from the beginning • IG has leverage in dealing with the Port State Advantages • Salvage contractors more likely to work together • Bid more competitive • Better contract Improved Project Management • Agree contractually on the project management expectations • ISU/ASA Project Management Guidelines ‒ Engineering Management ‒ Planning ‒ Risk Analysis ‒ Accounting Invest in New Tools • Industry standard project database ‒ Tracking of equipment and personnel ‒ Daily cost sheets ‒ Document control Invest in New Tools Max weight / piece 5t Capacity 35t @ 30m Invest in New Tools Invest in New Tools Invest in New Tools Invest in New Tools Invest in New Tools Invest in New Tools Thank you!