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Risk and Reliability Based Life-Cycle Cost Analysis for Capital Repairs Gary Tosh - PMV Engineering Consultant: Tetratech Or… A case study in getting the most cost effective capital repairs for the next 50 years while minimizing risk and maximizing reliability

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Page 1: Risk and Reliability Based Life-Cycle Cost Analysis for ...aapa.files.cms-plus.com/SeminarPresentations... · Risk and Reliability Based Life-Cycle Cost Analysis for Capital Repairs

Risk and Reliability Based Life-Cycle Cost Analysis for Capital Repairs

Gary Tosh - PMV Engineering

Consultant: Tetratech

Or…

A case study in getting the most cost effective capital repairs for the next 50 years while minimizing risk and maximizing reliability

Page 2: Risk and Reliability Based Life-Cycle Cost Analysis for ...aapa.files.cms-plus.com/SeminarPresentations... · Risk and Reliability Based Life-Cycle Cost Analysis for Capital Repairs

p o r t m e t r o v a n c o u v e r.c o m 2

Agenda

• Introduction: Neptune Terminal

• Background

• Findings

• Reliability and Risk

• Repair Program

Page 3: Risk and Reliability Based Life-Cycle Cost Analysis for ...aapa.files.cms-plus.com/SeminarPresentations... · Risk and Reliability Based Life-Cycle Cost Analysis for Capital Repairs

p o r t m e t r o v a n c o u v e r.c o m 3

Single Tie-back

Double Tie-back

Sheet Pile Length: 906 m / 3792 ft

Neptune Terminal

Neptune

You…

Page 4: Risk and Reliability Based Life-Cycle Cost Analysis for ...aapa.files.cms-plus.com/SeminarPresentations... · Risk and Reliability Based Life-Cycle Cost Analysis for Capital Repairs

p o r t m e t r o v a n c o u v e r.c o m 4

Background: Two Proposals

2013 Original Capital Plan

• 100% epoxy coating loss -> $3.5M for new wall coating

• Others modes of failure? Probability of occurrence?

• How to keep wall operational for another 50 years?

2013 Study

• 730 Port-owned assets: competition for funding

• New thinking: maximize ROI of capital repairs

• Tetratech to produce:

• Future data collection spec and location referencing

• Condition assessment

• Determine repairs, upgrades or modifications required

Page 5: Risk and Reliability Based Life-Cycle Cost Analysis for ...aapa.files.cms-plus.com/SeminarPresentations... · Risk and Reliability Based Life-Cycle Cost Analysis for Capital Repairs

p o r t m e t r o v a n c o u v e r.c o m 5

Location Referencing

Top of Wall

Vertical

Settlement

Page 6: Risk and Reliability Based Life-Cycle Cost Analysis for ...aapa.files.cms-plus.com/SeminarPresentations... · Risk and Reliability Based Life-Cycle Cost Analysis for Capital Repairs

p o r t m e t r o v a n c o u v e r.c o m 6

Findings: Bathymetric Study

600m

Berth 1 Berth 2

Corner Corner

150m

Berth 3

Page 7: Risk and Reliability Based Life-Cycle Cost Analysis for ...aapa.files.cms-plus.com/SeminarPresentations... · Risk and Reliability Based Life-Cycle Cost Analysis for Capital Repairs

p o r t m e t r o v a n c o u v e r.c o m 7

Upper ITZ

Splash Z

Mud line

Berth 1 Berth 2 Corner Corner

150m

Berth 3

12% AVG loss

18% AVG loss

8% AVG loss

Ultrasonic Testing: Thickness Loss

Page 8: Risk and Reliability Based Life-Cycle Cost Analysis for ...aapa.files.cms-plus.com/SeminarPresentations... · Risk and Reliability Based Life-Cycle Cost Analysis for Capital Repairs

p o r t m e t r o v a n c o u v e r.c o m 8

Cathodic Protection

Berth 1 Berth 2 Berth 3

Page 9: Risk and Reliability Based Life-Cycle Cost Analysis for ...aapa.files.cms-plus.com/SeminarPresentations... · Risk and Reliability Based Life-Cycle Cost Analysis for Capital Repairs

p o r t m e t r o v a n c o u v e r.c o m 9

Scour Rates

Berth 1 Berth 2 Berth 3

Page 10: Risk and Reliability Based Life-Cycle Cost Analysis for ...aapa.files.cms-plus.com/SeminarPresentations... · Risk and Reliability Based Life-Cycle Cost Analysis for Capital Repairs

p o r t m e t r o v a n c o u v e r.c o m 1

0

Predicting Reliability • Risk Modeling Approach: USACE EC 1110-2-6062

• An engineering reliability analysis determining the

Probability of Unsatisfactory Performance (PUP)

Page 11: Risk and Reliability Based Life-Cycle Cost Analysis for ...aapa.files.cms-plus.com/SeminarPresentations... · Risk and Reliability Based Life-Cycle Cost Analysis for Capital Repairs

p o r t m e t r o v a n c o u v e r.c o m 1

1

PUP Modelling Results

(Waler replaced)

0.16

0.02

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p o r t m e t r o v a n c o u v e r.c o m 1

2

Quantifying Risk in $ • Risk/yr($) = Consequences ($) X PUP

- Current risk = $16 M/yr

- Fixing scour lowers risk to $1.4 M/yr

- Treatment cost $150k => B/C ratio = 97

- Waler replacement, reduces risk to nil

- Treatment cost $350k => B/C ratio = 4

Page 13: Risk and Reliability Based Life-Cycle Cost Analysis for ...aapa.files.cms-plus.com/SeminarPresentations... · Risk and Reliability Based Life-Cycle Cost Analysis for Capital Repairs

p o r t m e t r o v a n c o u v e r.c o m 1

3

Full Repair Program

1. Remediate scour 2013 = $150k (est’d)

2. Staged waler replacement – buckling failure predicted 0 – 290 m (2013) = $350k (est’d)

3. Repair cathodic protection system issues 2013 = $150k (est’d)

4. ~135 m of sheet piling reinforcement in 30-40 years Berth 1

2013 Revised Repairs: $650,000, PUP = nil

Original Repairs: $3,500,000, PUP = 0.16

Page 14: Risk and Reliability Based Life-Cycle Cost Analysis for ...aapa.files.cms-plus.com/SeminarPresentations... · Risk and Reliability Based Life-Cycle Cost Analysis for Capital Repairs

Thank you [email protected]

Consultant: Tetratech