Template revised January 10, 2019.
COMMISSION
AGENDA MEMORANDUM
Item No.
8e
ACTION ITEM
Date of Meeting
August 8, 2023
DATE: July 28, 2023
TO: Stephen P. Metruck, Executive Director
FROM: Marie Ellingson, Sr. Manager, Cruise Operations and Business Development
Tim Leonard, Capital Project Manager, Waterfront Project Management
SUBJECT: Terminal 91 Cruise Passenger Secondary Gangways Procurement (C800129)
Amount of this request:
$8,700,000
Total estimated project cost:
$9,000,000
ACTION REQUESTED
Request Commission authorization for the Executive Director to execute a contract for two new
cruise passenger secondary gangways for the Smith Cove Cruise Terminal at Pier 91. This
authorization is for $8,700,000 of a total estimated project cost of $9,000,000. (CIP# C800129).
A secondary gangways Request for Proposal (RFP) is planned to be advertised subsequently to
the requested Commission authorization. Staff will return to Commission for additional budget
authorization, prior to execution of a purchase contract, if the RFP responses result in a total
project cost that is higher than currently estimated.
EXECUTIVE SUMMARY
Safe, reliable, and well operating passenger gangways are critical to cruise operations. Secondary
passenger gangways serve to better accommodate the large capacity ships of today and act as
an operations backup for the primary gangway. The existing east and west cruise ship berths at
Pier 91 each contain a primary passenger gangway, but only the east berth has a secondary
passenger gangway. This existing secondary gangway is at the end of its service life; is limited in
operational capacity as well as mobility; and requires constant maintenance attention. The
proposed Terminal 91 Cruise Passenger Secondary Gangways procurement project will enable
the Port to replace the existing secondary passenger gangway on the east berth and add a second
gangway on the west to achieve passenger embarking and disembarking capacity, an additional
layer of flexibility for shore power connections, and better operational mobility.
COMMISSION AGENDA – Action Item No. 8e Page 2 of 6
Meeting Date: August 8, 2023
Template revised June 27, 2019 (Diversity in Contracting).
JUSTIFICATION
New cruise ships, and their respective passenger capacities, are continually increasing in size
within the cruise industry. The ability to safely, and efficiently, embark and disembark cruise
passengers between the Smith Cove Cruise Terminal building and the passenger loading door(s),
on the various sized cruise vessels that berth at Pier 91, is essential to successful cruise
operations. Ideally, each cruise ship berth should have a secondary gangway, as well as a primary
gangway - not only to accommodate passenger capacities of larger vessels – but also to serve as
a fully capable (ADA compliant) passenger gangway in the event the berth’s aging primary
gangway is not in service.
Only one secondary passenger gangway is currently in operation at the Smith Cove Cruise
Terminal, and it is only in use at the east berth. An additional secondary gangway is needed at
the west berth. The existing (east berth) secondary gangway, which was assembled from sections
of older gangways, has reached the end of its service life and has become a maintenance concern.
Additionally, it has a limited operational range for connecting to cruise vessels, lacks mobility,
limited passenger capacity, and unlike the two primary gangways at Pier 91, it is not ADA
compliant. The proposed two new secondary gangways will alleviate these concerns.
Additionally, the improved mobility and vessel connection range provided by the new secondary
gangways will enable them to operate more efficiently with the proposed mobile shore power
equipment for Pier 91 and better accommodate the expanding range of cruise ship passenger
door locations. Having both a primary and secondary passenger gangway available at each berth
will enable the Smith Cove Cruise Terminal to maintain a high level of cruise passenger
satisfaction which is critical to the cruise lines as well as the Port.
This project supports the following Century Agenda and Maritime Division strategic goals:
Century Agenda:
1. Responsibly Invest in the Economic Growth of the Region and All Its Communities
2. Be the Greenest and Most Energy Efficient Port in North America
3. Be a Highly Effective Public Agency
Maritime Division:
1. Asset Management
2. Sustainability
Sustainability
The vertical operational range performance specifications, currently being developed by the
project team for the RFP, have taken tidal elevation increases, projected to occur during the
potential service life (25-years) of the new gangways, into consideration. Equipment
sustainability factors to be addressed in the gangway selection criteria are planned to include,
but not be limited to, energy efficiency, material types, and maintenance requirements.
COMMISSION AGENDA – Action Item No. 8e Page 3 of 6
Meeting Date: August 8, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Diversity in Contracting
The Port’s Diversity in Contracting Department was coordinated with regarding the technical
expertise consultant contract, previously executed as part of this project, and no women and
minority owned business enterprise (WMBE) goal was established due to the specific cruise
industry related expertise required. The project team is continuing to work with Port Diversity
staff to determine a WMBE goal for potential vendors, as applicable, to be reflected in the
gangways RFP to be advertised.
DETAILS
Scope of Work
The proposed cruise passenger secondary gangways procurement is planned to result in a
contract being awarded to, and executed with, a selected vendor for the manufacturing,
transport, delivery, and assembly of two (2) new gangways at Pier 91. Port staff, as well as a
technical expertise consultant, are currently determining the gangway operational requirements
and preparing the necessary RFP documents. This work is also being performed in consultation
with Cruise Terminals of America and SSA Marine as they are responsible for performing cruise
operations at Smith Cove Cruise Terminal.
Key Procurement Effort Tasks:
1. Analysis of Pier 91 gangways operational requirements (in process).
2. Determination of new gangways equipment requirements (in process).
3. Preparation of RFP documents to be advertised (in process).
4. Review of RFP responses and selection of vendor.
5. Negotiation of gangways vendor contract.
6. Review of gangways shop drawings.
7. Monitoring of gangways manufacturing and transport
8. On-site gangways delivery and installation coordination.
9. Gangways commissioning and operation/maintenance coordination.
10. Project closeout
Schedule
Due to the critical need for new secondary gangways at Smith Cove Cruise Terminal, the project
is endeavoring to procure and install them at Pier 91 as soon as possible. The milestone goals
below reflect an aggressive schedule, but the post-2023 milestones shown are contingent upon
variables not under the complete control of the Port and are therefore subject to change.
Milestone Goals
Commission project authorization
Request for Proposal advertisement
Gangways vendor contract execution
Gangways manufacturing start
COMMISSION AGENDA – Action Item No. 8e Page 4 of 6
Meeting Date: August 8, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Gangways in-use date (as soon as possible)
Cost Breakdown
This Request
Total Project
Project management, procurement, and
technical consultant services
$200,000
Gangways manufacturing, transport and
installation
$8,500,0000
Total
$8,700,0000
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Alternative 1 – Do nothing – continue to utilize and maintain the existing single Pier 91 secondary
passenger gangway (currently operating at the east berth only).
Pros:
(1) Retains Port capital for other priority projects and financial initiatives.
(2) Avoids potential temporary impacts to existing cruise and commercial shipping business
operations.
Cons:
(1) Ongoing lack of secondary gangway at west Pier 91 cruise vessel berth.
(2) Ongoing limited operational capacity and remaining service life risk of existing
secondary gangway at east Pier 91 cruise vessel berth.
(3) Ongoing increased operational costs to maintain and repair existing secondary
passenger gangway.
(4) Missed opportunity to implement long term goals and objectives for more efficient
Cruise operations and meeting increasing cruise vessel passenger needs.
(5) Potential lost revenue from increased flexibility to allow more ships to call to Port.
This is not the recommended alternative.
Alternative 2 – Defer procurement of the secondary gangways to a later date.
Pros:
(1) Retains Port capital for other priority projects and financial initiatives in short-term.
(2) Delays potential temporary impacts to existing cruise and commercial shipping business
operations.
Cons:
(1) Ongoing lack of secondary gangway at west Pier 91 cruise vessel berth.
(2) Ongoing limited operational capacity and remaining service life risk of existing
secondary gangway at east Pier 91 cruise vessel berth.
(3) Ongoing increased operational costs to maintain and repair existing secondary
passenger gangway.
(4) Missed immediate opportunity to implement long term goals and objectives for more
efficient Cruise operations and meeting increasing cruise vessel passenger needs.
COMMISSION AGENDA – Action Item No. 8e Page 5 of 6
Meeting Date: August 8, 2023
Template revised June 27, 2019 (Diversity in Contracting).
(5) Potential lost revenue from increased flexibility to allow more ships to call to Port.
This is not the recommended alternative.
Alternative 3 – Procure two (2) new cruise passenger secondary gangways.
Pros:
(1) Alleviates lack of secondary gangway at west Pier 91 cruise vessel berth.
(2) Alleviates limited operational capacity and service life risk of existing secondary
gangway at east Pier 91 cruise vessel berth.
(3) Reduced secondary gangway maintenance and repair costs.
(4) Contributes to implementation of long-term goals and strategic objectives for Cruise
operations and meeting increasing cruise vessel passenger needs.
(5) Increased revenue from additional flexibility to allow more ships to call to Port.
Cons:
(1) Requires immediate Port investment of funds.
(2) Creates potential temporary impacts to existing cruise and commercial shipping
business operations.
This is the recommended alternative.
FINANCIAL IMPLICATIONS
Cost Estimate/Authorization Summary
Capital
Expense
Total
COST ESTIMATE
Current project estimate
$9,000,000
$0
$9,000,000
AUTHORIZATION
Previous authorizations (initial budget per
POS Cruise Director approval)
$300,000
$0
$300,000
Current request for authorization
$8,700,000
$0
$8,700,000
Total authorizations, including this request
$9,000,000
$0
$9,000,000
Remaining amount to be authorized
$0
$0
$0
Annual Budget Status and Source of Funds
This project is included in the 2023 Capital Plan under C800129 T91 New Cruise Gangways. The
total estimated project cost is $8,800,000.
This project will be funded by the General Fund.
Financial Analysis and Summary
Project cost for analysis
$9,000,000
Business Unit (BU)
Cruise Operations
COMMISSION AGENDA – Action Item No. 8e Page 6 of 6
Meeting Date: August 8, 2023
Template revised June 27, 2019 (Diversity in Contracting).
Effect on business performance
(NOI after depreciation)
•No incremental operating revenue or cost-savings is
directly associated with this project.
•Increased operations and maintenance expenses not
anticipated.
• Project mitigates risks to existing revenue and provides
opportunities for potential revenue growth.
• NOI after depreciation will be reduced $450K annually.
IRR/NPV (if relevant)
N/A
ATTACHMENTS TO THIS REQUEST
(1) Presentation slides
PREVIOUS COMMISSION ACTIONS OR BRIEFINGS
None