Importance
The mission of the Alaska Marine Highway System is to provide safe, reliable, and efficient transportation of people, goods, and vehicles among Alaskan communities, Canada, and the "Lower 48," while providing opportunities to develop and maintain a reasonable standard of living and high quality of life, including social, education, and health needs.
The Alaska Marine Highway System has been operating year-round since 1963, with regularly scheduled passenger and vehicle service to 30 communities in Alaska, plus Bellingham, Washington, and Prince Rupert, British Columbia. During the past ten years the Alaska Marine Highway System has carried an average of 319,000 passengers and 97,000 vehicles per year. There are currently eleven ferries in the AMHS fleet.
Anyone who has seen old machinery in operation whether it is a 300-year old clock, a 70-year old automobile, or old production equipment has no doubt realized that with proper repair and maintenance almost anything can be kept operating indefinitely. While we might be able to keep [a ferry] going indefinitely, the cost may be excessive. So rather than asking what the remaining life of the [ferry] could be, we really want to know what its economic life is.
- Engineering Economic Analysis, Engineering Press Inc., 1983, Chapter 12, Replacement Analysis.
The creation of the Alaska Marine Highway System included the construction of four ferries in 1963-1964. Today, the AMHS fleet has grown to a total of eleven ferries, including these four vessels which are now over 45 years old.
Generally U.S. vehicle ferries last 40 to 60 years. Their engines are typically replaced after 20 years. At the 40 to 60 year mark, refurbishment costs begin to approach the cost of a new vessel. Not only is there the cost of replacing engines for a second time, but additional costs for repairing years of hull corrosion and bringing the vessel into compliance with current safety requirements must be considered.
The question is therefore, "When to replace an existing vessel?" In 1991, AMHS developed a long range plan for vessel replacement. This plan concludes that a typical service life of 64 years for its vessels is both economically and sociologically responsible. Further, the plan lays out a fleet replacement schedule beginning in 2016 and ending in 2044. For AMHS to meet its goal of replacing a vessel in 2016 it must begin work now.
Design and construction of a new ferry can take from 4 to 7 years. Developing a design requires up to two years and vessel construction can take up to two additional years. It is not until after the completion of the design, that major machinery components can be ordered. Depending on availability, delivery of these components can significantly increase the overall construction time because they often require 2-4 years for delivery after order.
Failure to follow the AMHS vessel replacement plan will have costly consequences. If new vessels are not placed into service, annual maintenance costs will increase and AMHS will most certainly be confronted with unplanned vessel repairs. Increases in maintenance and repair costs coupled with longer service periods will force AMHS into budget decisions that will affect service schedules, routes and reliability.
Without taking action, the risk of service reductions or loss increases each year older vessels are kept in service. As these vessels age, it becomes more likely that problems discovered during routine vessel inspections would result in a loss of service. A loss of service would make life significantly more difficult for residents living in the affected communities. A loss of service would also require a compressed design and construction schedule that will be very difficult and more expensive to achieve.
In the example described on the introduction page, Washington State Ferries was forced to eliminate service for 3 months between 2 communities and has only been able to resume service at less than half that prior to removal of the vessels from service. While Washington State residents and visitors were inconvenienced by having to drive 80 miles, including two ferry crossings, such an event in Alaska would make it impossible for vehicles to travel between communities. While extreme, this scenario highlights the impact AMHS has on moving people and goods and enabling commerce in Alaska.
Waiting to act will also have an impact on AMHS maintenance budgets because of the cost of complying with future regulatory requirements. This includes both new public safety and new environmental regulations. As an example of environmental regulations, AMHS will be faced with updating propulsion systems to meet ever-tightening EPA emission standards. The original AMHS ferries were built with technology that is now 45 years old and will not comply with upcoming standards. In contrast, modern technologies that meet or exceed current regulatory standards will be used in any new construction.
As these vessels age, it is essential to the continued success of AMHS that the vessel replacement plan be put into action. The costs associated with not replacing these aging vessels are substantial and cannot be ignored. The Alaska Class Ferry is the next generation of ferries that will begin the replacement of the aging fleet.
