We Can Do Better

Commercial Marine Bases

Benefits, Risks, & Operations

Abstract

This white paper discusses the operations, risks, and benefits of a commercial marine base. The operations of a marine base include the management and maintenance of the infrastructure and equipment necessary for marine activities including, but not limited to renewable energy development, cargo transportation, and oil and gas extraction. Major risks associated with marine bases include environmental hazards, financial loss, and strong competition. Despite these risks, marine bases can also bring significant economic benefits to the operator and surrounding communities. These benefits include job creation, economic spin-offs in the local area, as well as increased and efficient access to marine and renewable resources. The purpose of this paper is to provide expert insight and guidance to organizations currently operating marine bases or to those organizations who are considering it.

About ASL Energy

ASL was founded in St. John’s NL, in 2012 based on our core value that “We Can Do Better”. We apply this motto to all parts of our organization. We strive to provide the best service to our clients and to attract the best personnel to our team. With this in mind, we have formed long-lasting relationships with our clients and personnel alike. Since 2012, we have been involved heavily in the offshore energy sector supporting Greenfield and Brownfield initiatives in Newfoundland and Labrador. As we diversify, we continue to be passionate about a transition to environmentally responsible and renewable energy sources. ASL Energy is a leader in electric vehicle adoption and provides support to companies looking to grow their competitive advantage through digital adoption.

ASL Energy prides itself in giving back to our community. We work closely with local, grassroots charities to provide funding, leadership, and support to those who need it most. ASL Energy is committed to equitable hiring practices and partners with local indigenous-owned companies to best serve those under-represented groups within our province.

Introduction

Marine bases play a vital role in the global and regional economies, providing access to resources and supporting various marine activities including, but not limited to renewable energy advancement, cargo transportation, and oil and gas extraction. The development and operation of these bases come with a range of risks and challenges. It requires significant up-front investment with the cost of land, facilities, equipment, and infrastructure to name a few. Once the base is functional, operational costs including preventative and unplanned maintenance of equipment and infrastructure will have a major impact on an organization’s bottom line, but none pose a larger risk than the cost of labour.

The labour model for the marine base is integral to efficiency and profitability. Marine base operation requires a specific skillset and a highly trained labour force. The availability of skilled labour will be a major factor in determining the feasibility of a marine base in a particular location. Labour costs can vary significantly depending on location and scale of ongoing projects. A well-trained, multiskilled workforce will help keep personnel numbers down and efficiency up. Due to the nature of marine work, competition is global; clients can often sail to another facility to seek better rates and productivity. Therefore, the labour model will need to be globally competitive as well as attractive to the local work force. Other factors which must be addressed include facility and maintenance programs, and environmental risks.

Despite the challenges of creating and operating a marine base, there are tremendous benefits including job creation, revenue generation for local businesses, increased access to marine resources, renewable energy production hubs and the opportunity for research and development. Marine bases can serve as a focal point for research and development, which help to advance our understanding of marine ecosystems and aid in the development of new technologies that can promote sustainable development and the protection of the environment.

There is a myriad of uses for a marine base beyond what is mentioned here, including defence, import, export, spool bases, and refining. ASL Energy is well positioned to help companies find the right path to maximize potential and create the efficiencies required to win bids and remain profitable.

Benefits

A Marine base brings significant benefits to local communities, stakeholders, businesses, and the provincial economy. One of the most notable benefits is job creation. A Marine base requires a wide range of personnel, from engineers and technicians to security and administrative staff. This creates employment opportunities for residents and stimulates economic growth in the surrounding area. Economic spinoffs in the local area may include revenue for local businesses; they require a wide range of goods and services, from fuel to food and accommodation. This provides a boost to the local area and stimulates economic growth. A successful marine base also increases access to marine resources by increasing the ability of local fishermen to access the resources they need to make a living. This can help to ensure the sustainability of marine resources and bolster support in renewable energy generation. Offshore wind farms and tidal power stations can use the same marine base as a hub for operations and with proper leadership, work towards a common goal of creating stable work and reliable income for the long term.

An often-underestimated benefit of marine bases is to aid in research and development initiatives along with public and private stakeholders. Marine bases can provide access to the marine environment for scientists and researchers, to help advance our understanding of marine ecosystems and aid in the development of new technologies.

Marine bases offer tremendous opportunity as a highly profitable enterprise. As with any large enterprise, there are risks and pitfalls. ASL Energy is positioned to help mitigate these risks and, ensure that a marine base functions most efficiently and therefore, most profitably.

Risks

While a marine base can be a tremendous social and economical advantage, there are large financial commitments required to create and operate an effective facility. While the initial investment in creating or modernizing a facility is substantial, it is a controlled risk that is largely held by financiers and investors. This paper highlights 4 of the most significant risks to the viability of a marine base facility:

  1. Competition

  2. Labour

  3. Facility & Infrastructure

  4. Environmental

Competition

Due to the nature of the marine base industry, it is likely that some, if not all clients are transient and have one or more options for their base of marine operations. In the case of international vessels, this could represent hundreds of options worldwide. To keep ahead of the competition, it is important to monitor the competition’s rates, services, and availability. It will be important to develop a differentiation strategy which focuses on the value the organization provides, and how a company can gain a competitive advantage. ASL Energy will help organizations to set pricing and develop facilities and services to gain and maintain market share in the industry.

Labour

The labour model for a marine base is directly related to operational costs and a company’s ability to compete in the global market. The model will require consistent review and monitoring to ensure performance standards are being met and it continues to reflect current economic conditions. At the same time, compensation systems are to be reviewed to ensure they match employee value. A good employee who is multiskilled and recognized by clients is worth keeping. In the same context, one who does not contribute to the team or who is a negative influence on others must be removed. A strong labour model will allow an organization to attract and retain talented and skilled employees, which will improve productivity and overall performance. Additionally, a competitive labour model will motivate employees and increase job satisfaction, leading to lower turnover rates and reduced recruitment costs. As a result the organization is able to stay competitive in the labour market by offering competitive compensation and benefits packages. Furthermore, a competitive labour model will help to promote a positive corporate culture and improve employee morale, which will have a positive impact on overall organizational performance. The labour model will be key in determining how competitive an organization is locally, regionally, and globally. If the model prevents the use of multiskilled personnel or has prohibitively restrictive hiring/layoff practices, competitors will likely be more attractive to an organization’s current and potential clients. ASL Energy is well versed in industrial relations and can work with an organization and its human resources providers or unions, to deliver fair and long-term employment for the personnel, while ensuring the organization remains competitive in the market. ASL Energy can guide a greenfield operation to a model that attracts and retains personnel but is scalable for growth and large-scale projects. In addition, ASL Energy has the expertise to facilitate an experienced organization to maximize productivity and employee engagement.

Facility & Infrastructure

Depending on the age of a facility, an organization may have ongoing repair and replacement needs for equipment and infrastructure. These ongoing costs can become a financial burden, or they can contribute to the growth of an organization. All too often, maintenance and replacement are done to ensure the status quo is met. In a highly competitive market, preventative maintenance programs are required to maintain a competitive advantage. It is important to incorporate maintenance programs into operational planning to ensure equipment and facilities have a longer lifespan resulting in increased profitability over a period of time. ASL Energy can guide an organization to an operational and preventative maintenance model that will provide the highest possible return on investment and help drive revenue with modern tools to track and complete maintenance.

Environmental

Often overlooked and misjudged, environmental hazards pose a very real and significant risk to the operations of a marine base. Beyond complying with applicable laws, regulations, and guidelines, an organization must keep a view on the long-term operational impacts.

Pollution and spills can cause significant damage to marine life and habitats. This can also lead to costly clean-up efforts, fines and reputational harm of the organization. Marine bases also face risks from climate change, such as sea level rise, which can lead to flooding and erosion. Environmental risks can make it difficult to maintain the base's facilities and infrastructure and can impact the safety of personnel and equipment. Damage to sensitive marine and onshore habitats can occur from activities such as dredging or construction, which can disrupt the natural balance of the ecosystem and cause long-term damage. It is important to recognize and control the risk of invasive species, introduced by ships or other equipment that can disrupt the local ecosystem. Noise pollution is also an environmental risk that can have a negative impact on marine life and habitats, particularly on species that rely on sound to communicate, navigate, and locate food. Furthermore, an organization must consider noise pollution’s effect on nearby residential areas.

Key questions that an organization must consider:

  • How do the company’s operations, and those of its clients affect the land and marine life at the base?

  • What happens in the event of a natural disaster: contamination, pollution, spills, etc.?

  • What remediation will be required to be completed when the company or its client leave the facility?

ASL Energy has experienced leaders in environmental conservancy, compliance, and assessments who can help ensure a marine base is not only compliant with all requirements but can be proud of its operations and contribute to the benefit of our environment.

Operations

While there is no standard set of operations, there are many ways in which operations across differing marine bases are similar in nature. A commercial marine base typically provides a variety of services to vessels, such as fueling, provisioning, and repair. They offer storage and transportation services for cargo and equipment and may offer fabrication, and other industrial services. Because of the competitive nature of a marine base, operations must be lean, efficient, and effective. An organization must have a strong labour model to allow for efficient operations and scalability for large projects. Facility maintenance is an integral part of marine base operations as it represents a significant cost which can be seen as a part of doing business or be leveraged to keep an organization’s competitive advantage and to adopt new technologies to better service its clients. Marine bases are unique, in that they operate across land and sea, and are responsible for all related regulations. ASL Energy can help companies develop operational excellence and ensure maximum profitability.

Conclusion

Commercial marine bases play a crucial role in the operation of the maritime and global energy industries. They offer a wide range of services that are essential for the smooth and efficient operation of commercial vessels, including but not limited to fueling, provisioning, and repair. They support collaboration, advancement in technology, and scientific understanding of our planet. However, the operation of a marine base also brings certain risks, such as environmental hazards and financial loss. It is critical for marine base operators to implement measures to minimize risks and to ensure the safety of the vessels, personnel, and the environment. The labour model used for a successful marine base will directly impact many other parts of the operation and is key to ensuring competitiveness and profitability. A marine base provides significant benefits to a region, including jobs, economic growth, and prosperity. They are a vital asset to the maritime industry that offer many benefits to the stakeholders and surrounding area but require careful management and risk mitigation. ASL Energy is an expert in marine base operations and can help an organization ensure a competitive and profitable outcome.

About the Author

Noah Zanbilowicz is a graduate of both the Marine Institute’s Naval Architecture program, Memorial University Bachelor of Technology and earned an MBA from the University of Fredericton. He was the Bull Arm Site Manager from 2018 to 2022 and created a paradigm shift in how the site is operated. From Labour models to daily maintenance, Noah took a universal view of site operations to reduce operating and labour costs and increase profits. Today, Noah is the President of ASL Energy where he supports companies in facility operations management, project management, and occasionally (his daughter’s) hockey team management. Noah is the father of two girls, and husband to his wife of 13 years. Noah is a dedicated volunteer and has served on the board of Candlelighters Newfoundland and Labrador since 2016.

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