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SPECIAL REPORT: Dredging
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❯ OVERVIEW
❯ DREDGING INTERNATIONAL NV
❯ OCEAN DREDGING DSM
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❯ VAN OORD
DREDGING: OVERVIEW
Beauty and the beast
Dredging is eco-sensitive – but regulators must not price it beyond reach
There is intense pressure on the region’s maritime industry to constantly improve and expand its facilities to meet the demands of international trade and tourism. But this expansion must be balanced with the region’s desire to conserve and protect the outstanding natural beauty of its islands and coasts. A typical dredging project in the Caribbean will cost roughly 50 per cent more than elsewhere because of tough environmental regulations. In this article, consultants Jelle Prins and Luis Prieto call for a more joined-up approach by regulators across the region to ensure that port authorities can afford to keep up with essential dredging.
The Caribbean is a unique region. There are few areas on earth where 13 sovereign island nations and 12 territories with ties to Europe and the United States depend so heavily on waterborne commerce. The region’s pristine beauty and fragile environment also hold great value for the tourism industry, but it remains extremely challenging and costly for the maritime industry.
Navigating the intricate regulatory environment that covers the Caribbean’s 7,000 islands also makes it necessary to understand the areas of low and high dredge frequency and the degrees of regulatory capacity. Some areas enforce disproportionately strict and complex regulations that often hinder the maritime industry’s ability to meet the region’s infrastructural needs.
Impact
The impact of these regulations may not be immediately apparent. Infrastructure projects are critical to a region’s economic well-being and sometimes must be carried out – a shoaled port can have severe and far-reaching economic consequences. In these instances, the consequence of the strict environmental regulation is cost escalation. And these costs are passed directly to the general population through repayment landing fees, head taxes and other costs.
Dredging – the underwater excavation of sediments – encompasses an array of needs. It is used to deepen channels and ports, build and nourish beaches, reclaim lands and for environmental clean-up. The role of the regulatory authority is to establish standards that limit these impacts while still permitting the dredging to proceed.
The Caribbean’s dredging need is most heavily centered on navigation. There is a demand for dredging for public infrastructure including commercial ports, cruise terminals and private marinas. The unfortunate truth of dredging projects is that they have an inevitable impact on their immediate environments. There are ways to reduce this broad-ranging impact, while identifying the challenging circumstances that affect budget, complexity and delivery.
Focus
Regulatory bodies with vast resources focus on water quality and scrutinize turbidity, the cloudiness in the water that occurs naturally on every coastline and can be seen during tidal shifts or areas with strong currents. The murkiness caused by the suspension of solids within the water column increases during human activity, and while turbidity has an undisputed potential environmental impact, builders are often unable to meet the regulatory standards imposed within the permits.
Turbidity regulations within the region are on average four times more exigent than prevailing international standards. The impact of this severity is significant and is reflected in well-above-average unit prices for dredging and other marine construction activities.
Turbidity is typically measured as a function of light penetration through a water sample. The most common unit of measurement is the nephelometric turbidity unit (NTU). The prevailing international standard for acceptable anthropogenic turbidity is 29 NTUs above background, meaning that a project may generate up to 28 additional NTUs of turbidity while remaining in compliance. For reference, a water sample with a turbidity of 20 NTUs appears almost perfectly clear. Conversely, the most common threshold we have experienced within the Caribbean regulations is between 3 and 5 NTUs above background, a measurement that can fall within an instrument’s margin of error.
Any specification requiring that a marine construction activity be governed by these limits exponentially increases the risks of cost overages and contractor default. The impact of this severity is significant and is reflected in the well-above-average unit prices for dredging and other marine construction activities in the region. With all other factors being equal, a dredging project in the Caribbean will cost upwards of 50 per cent more than a similar project elsewhere.
Several years ago, the Piedroba Consulting Group (PCG) partners managed the maintenance dredging of a navigation channel. The project was simple and involved the removal of some 100,000 cubic meters of beach sand that had filled the channel and that sand was redeposited on an adjacent beach. This is a common project and we would typically expect to see prices in the US$ 5 to 10 per cubic meter range. In this case, however, the environmental permit required the dredging contractor to meet an unattainable water quality standard. Consequently, the lowest bidder on the project bid US$ 23 per cubic meter. As we expected, they frequently exceeded the water quality threshold and experienced many shutdowns. Upon completion, the adjacent environment that the regulator sought to protect remained healthy and in good condition. The net effect of the regulation was that the project owner paid three or four times more than needed.
Burden
As marine infrastructure project management consultants, the PCG has overseen or directly managed projects worth hundreds of millions of US dollars throughout the region. Without fail, nearly all of these projects experienced some degree of regulatory burden. To say marine construction can be performed without impact to adjacent waters is impossible. Yet regulation requiring such a standard will render a project unbuildable or shepherd it directly to the courtroom.
A responsible contractor will treat this risk by adding contingency costs to their proposals to abate their financial exposure to potential shutdowns or fines without going bust. While the impact of the regulations increases cost, the contractor will likely exceed the thresholds established and absorb the financial burden of the penalties; and consequently the end user will end up paying a senseless premium for the use of the facility. The end result is a project delivered at a higher price.
To better protect the environment when planning for dredging projects in the Caribbean, PCG encourages regulatory authorities to engage in early contractor discussions with stakeholders. Contract owners are generally most concerned with delivering the project on time and within budget; and this can go hand in hand with the protection of the environment through the implementation of widely accepted mitigation strategies.
Contractors would benefit from a more cohesive regulatory effort. Numerous Caribbean regulatory authorities can create a regional standard and benefit from the combined experience of the region as a whole, while safeguarding their environmental resources and while addressing the needs of the stakeholders and streamlining the unnecessarily complex and burdensome regulatory landscape.
By Jelle Prins and Luis Prieto
Partners of the Miami-based
Piedroba Consulting Group
DREDGING: DREDGING INTERNATIONAL NV
Rocky challenge of canal entrance widening
An interesting and challenging project for Dredging International NV* was a US$ 96 million contract to widen the Pacific entrance of the Panama Canal south of the Americas Bridge.
This capital dredging project was carried out between September 2015 and October 2016 on behalf of the Panama Canal Authority. It involved a symmetric widening of the existing eastern and western prism lines by 37.5 meters and required the removal of about 5 million cubic meters of spoil including large quantities of volcanic rock. The project also involved maintenance dredging.
For this task, the company deployed the trailer suction hopper dredger ‘Lange Wapper’, the seagoing cutter suction dredger ‘d’Artagnan’ and the barges ‘Pagadder’ and ‘Sloeber’. All rock was dredged in direct mode by the ‘d’Artagnan’, which was equipped with cutter-heads designed and manufactured specifically for this project.
All material defined as overburden and highly weathered rock (residual soil) was dredged by the ‘Lange Wapper’, which was equipped with a drag-head designed to work and perform in mixed and tough soil conditions involving an abundance of rock outcrops.
Colombia coal terminal project
In an earlier project, Dredging International played a key role in the development of a new coal loading terminal at Puerto Drummond, on the Caribbean coast of Colombia.
In a contract on behalf of Drummond Colombia Ltd, the company dredged the turning basin and berthing area for the new terminal in a project that lasted from July 2013 to February 2014.
From an initial water depth of between 3.5 meters and 7.0 meters MSL, the area had to be dredged to a depth of 20.5 meters MSL. This required the removal of about 12 million cubic meters of mixed soils ranging from recent marine sediments to stiff clays.
To meet its six-month completion target, the company deployed four trailing suction hopper dredgers, the ‘Orwell’, ‘Pallieter’, ‘Lange Wapper’ and ‘Pearl River’. For about four months of the project, three of the hoppers carried out simultaneous dredging.
The task of installing the new coal loading facilities – which included piling, jetty construction and delivery of the coal handling equipment – went ahead while the dredging was in progress.
Dredging International had to follow strict environmental regulations in order to minimize any recirculation of sediments into the environment and adjacent port areas.
*Dredging International NV is a member of the Dredging, Environmental & Marine Engineering (DEME) Group, with its head office in Belgium.
DREDGING: OCEAN DREDGING DSM
Maintenance dredging: it doesn’t pay to skimp
Everyone in the shipping business is aware of the benefits that can be derived from an economy of scale. But there are exceptions to this general rule, and one of these would seem to be the dredging business.
According to Steve Côté, director of international business development for the Canadian dredging contractor Ocean Group, there are some popular myths in relation to the cost of maintenance dredging and how often it needs to be done.
“Many ports have the impression they have to wait until they have a lot of material quantities before launching a dredging project,” says M. Côté. “But it’s not true that big quantities always equal a better price. And the cost of waiting may outweigh the cost of dredging.”
He says the consequences of putting off dredging work – or simply not having it done – can include the following:
- You may compromise your channel or port depth
- Your port’s reputation will be affected by an insufficient draft or a port that is not reliable
- Ships could be damaged or grounded during transit of your port • You could lose ship calls
- You could deter inward investment • You may need emergency dredging at high cost
- Ships that are not fully loaded face a big loss of revenue.
So, to sum it up, maintenance dredging should be regarded by the port as an investment, says M. Côté.
Bidding: Transparency is the best policy
Dredging companies are always eager for contracts, but Ocean Group likes to be sure that the bidding process is carried out with maximum efficiency and transparency and that both parties to the contract are clear about what is involved in the project, how long it is likely to take, what equipment will be needed and what kind of natural hazards are likely to be encountered.
Accordingly, M. Côté says that when Ocean receives the request for proposal (RFP) it follows a laid-down procedure:
“We validate the availability of the equipment. We evaluate the value of the contract versus the time and cost that we need to invest. We make sure that the deadlines to submit the bid are realistic. We look at our chances of obtaining the contract. We make sure we meet the selection criteria. We define the risks. And we validate the scope of the work versus the date obtained in the request for quote.”
According to the International Federation of Consulting Engineers, the most common dispute on a dredging contract relates to the contractor encountering soil conditions that were not reasonably foreseeable. Ocean requires the following tender data in order to satisfy itself that the project is valid on both sides of the contract:
- Work scope (maintenance and capital)
- Quantities in cubic meters, depth, area to dredge in square meters, time to execute • Disposal site (at sea or on land, distance)
- Nature of the ground (geological and geotechnical) • Hydrographic factors (tides, currents, waves and bathymetry)
- Operational and legal constraints
- Obstructions and archaeology
- Siltation rates
- Environmental constraints.
Advantage
M. Côté says it is important for the client to share information with the contractor at the earliest stage of the project. In this way, the client can take advantage of Ocean’s know-
ledge and expertise. Ocean can reduce the risk factors, thus keeping down costs. It can advise on when a suitable dredger will be available and how much it will cost to mobilize. And it can recommend a financing solution such as Canadian Commercial Corporation (CCC) or Export Development Canada (EDC).
Recent projects
Over the past five years, Ocean Group has carried out maintenance dredging in various ports in the Caribbean and wider region, including Dos Bocas and Veracruz in Mexico; San Pedro de Macoris, La Romana and Haina in the Dominican Republic; Kingston in Jamaica; and in Cuba.
In addition, the company has been involved in capital dredging for port construction and land reclamation in the British Virgin Islands in 2015; and capital dredging for a new wharf at Punta Catalina in the Dominican Republic in 20115 and 2016.
Projects for Ocean in 2018 include capital dredging at Coco Bay in The Bahamas; capital dredging for a new wharf in St Kitts; and maintenance dredging in Haina (Dominican Republic) and in Cuba.
Ocean Group
Ocean Group was founded in 1972 by its current president, Gordon Bain. The group employs 850 people and has over 570 items of specialized equipment. The Ocean fleet is composed of 500 barges, 30 workboats, 34 tugs, seven pilot boats and six dredgers (both mechanical and suction types).
With its head office in Quebec, Canada, the group has 16 strategic business locations in Canada, Latin America and the Caribbean. Its priority is to offer a quality service to customers using state-of-the-art equipment.
DREDGING: DUTCH DREDGING
Aruba project brings double benefit to port
The Port of Oranjestad in Aruba will benefit in two important ways as the result of a key project by Dutch Dredging. First, the port will be able to receive Freedom-class cruise ships in time for this coming season; and the dredged material is being used to provide additional port land.
The project was commissioned by the Aruba Ports Authority, with work expected to be completed by the end of April. It involves maintenance dredging of the cruise ship channel at Oranjestad and land reclamation in the industrial area of Barcadera.
The channel is being deepened to 12.0 meters to accommodate Freedom-class cruise ships, with the first of this class due to call in summer 2018. The work has been carried out by the trailing suction hopper dredger ‘Elbe’, which sucks up the sand from the seabed in a similar way to a vacuum cleaner and loads it into the vessel’s own hopper. Some 200,000 cubic meters of sand was due to be dredged from the channel and carried away.
Solution
Aruba Port Authority has found a sustainable solution by reusing the dredged material to reclaim land at the industrial port of Barcadera, which is the subject of a long-term expansion plan. The current reclamation project will provide an additional 50,000 square meters of land.
The sand in the hopper is mixed with water to create a mud fluid which is pumped through a pipeline system onto the reclamation site. A silt screen and other measures will be used to protect the seagrass and local species from the silt. After the land reclamation of sand has been completed, the embankment will be protected with geotextile and stones.
Recent projects
Projects undertaken by Dutch Dredging in the Caribbean region include:
- French Guiana: Long-term maintenance dredging and maritime services
- Suriname: Recurring maintenance dredging of private mooring berths
- Aruba: Maintenance dredging of cruise terminal and land reclamation
- Mexico: Beach replenishment.
About the company
Dutch Dredging (Baggerbedrijf de Boer) is a family-owned company based in Sliedrecht in the Netherlands. It employs about 200 professionals. It is involved in projects around the world including the Caribbean and South and Central America as well as Europe and Oceania. The company specializes in maintenance and capital dredging, beach replenishment, land reclamation and maritime and survey services.
DREDGING: VAN OORD
Eco-friendly invention will help sustain coral
The Dutch dredging contractor Van Oord sets great store by its environmentally responsible approach to the development of maritime infrastructure. And in this regard the Rotterdam-based company has achieved a major milestone in The Bahamas by creating a so-called Coral Engine – believed to be the first of its kind anywhere.
The Coral Engine is an underwater nursery designed to function as a sustainable source of fast-growing coral that can be used to rehabilitate existing coral reefs or to create new ones. This solution can be applied worldwide, but is of particular interest in the Caribbean.
Mark van Koningsveld, research and development engineering manager at Van Oord, said: “When we carry out dredging and construction work, it’s vital to consider the interests of the environment and local stakeholders. The Bahamas are famous for their white-sand beaches, azure sea and fabulous marine life, making them a paradise for divers and snorkelers. Before we started working in this beautiful environment, we took various measures to protect the vulnerable surrounding coral reefs. For example, we relocated coral situated in the footprint of the access channel to a host site nearby to ensure their preservation. We worked with a coral expert and divers to relocate more than 900 pieces of coral from the projected route of Coral Harbour’s access channel. Under controlled conditions, the coral was moved to a nearby reef that provides a similar habitat. In addition, Van Oord developed the Coral Engine.”
Nursery
Mr van Koningsveld went on: “The Coral Engine is an underwater coral nursery that contains both locally sourced coral fragments and sexually produced coral juveniles of varying ages. We shipped our mobile coral breeding facility, Reef Guard, to the Bahamas and produced thousands of sexual recruits from local spawning events on our preconditioned settlement substrates. As the corals grow, the Coral Engine is a continuous source of outplantable corals that allow local stakeholders to create and if necessary rehabilitate their coral reefs.”
The R&D team at Van Oord believes that all Caribbean countries could really benefit from this smart solution to take care of their vulnerable environments.
“As a family-owned business founded 150 years ago, Van Oord plays an active role in caring for the planet now and in the future by guarding and protecting the environment,” said Mr van Koningsveld. “We strive to minimize the potential negative impact of our work on the marine environment and encourage our ingenious engineers to develop more sustainable working methods and innovations. The Coral Engine and associated deployment of the Reef Guard are excellent examples of this. They showcase our marine ingenuity.”
Rigorous
In 2014 the government of The Bahamas signed an agreement with Van Oord and Damen Shipyards covering a rigorous upgrade of the naval bases on three islands and the delivery of a fleet of new patrol vessels.
Van Oord’s area manager, August Runge, said: “Our scope in the Sandy Bottom project included dredging, constructing several breakwaters and quay walls and corresponding civil engineering works. The work was spread out over sites up to 700 km apart. By the end of 2017 we finished the construction work.”
The project team received the Hansje Brinker Award for its safety and environmental attitude. The team went to great lengths to prepare for storms, including Hurricane Irma, and gave top priority to safety, which resulted in zero lost time incidents.
In addition, Van Oord has recently carried out various other projects in the Caribbean using the trailing suction hopper dredgers ‘Dravo Costa Dorada’ and ‘Lelystad’, which are permanently available in the region for port dredging, land reclamation and beach nourishment projects.
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