Washington State Ferries Vessels & Terminals - Vessel preservation backlog

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Vessel preservation backlog



Source: Washington State Ferries.

Note: Values have been rounded.

Performance analysis

FY2022

Washington State Ferries vessel preservation backlog increases by $6.5 million in FY2022

The Washington State Ferries vessel preservation backlog reached $269.7 million in fiscal year 2022, up $6.5 million (2.5%) from $263.2 million in FY2021. At the start of the 2021-2023 biennium, WSF allotted $91.9 million to vessel preservation, but later revised that amount to $141.5 million—funding sources are approximately 63% federal and 37% state.

This investment level ($141.5 million) meets approximately 52% of the $269.7 million preservation backlog WSF identified in FY2022. Over the past five years, the vessel preservation backlog has increased 29.3% ($61.1 million) from $208.6 million in FY2018.

FY2021

Washington State Ferries vessel preservation backlog increases by $17.7 million in FY2021

The Washington State Ferries vessel preservation backlog was $263.2 million in fiscal year 2021, up $17.7 million (7%) from $245.5 million in FY2020. WSF has allotted $91.9 million to vessel preservation for the 2021-2023 biennium-funding sources are approximately 63% federal and 37% state.

This investment level meets approximately 35% of the $263.2 million preservation backlog identified in the vessels Life-Cycle Cost Model for FY2021. Over the past five years, the vessel preservation backlog has increased 62.3 % from $162.2 million in FY2017.

FY2020

Washington State Ferries vessel preservation backlog increases by $39 million in FY2020

Washington State Ferries' vessel preservation backlog was $245.5 million in fiscal year 2020, up $39 million (18.9%) from $206.5 million in FY2019. WSF decommissioned the Motor/Vessel Elwha in FY2020, which removed $33.1 million from the total vessels backlog but reduced the fleet to 21 vessels. If the FY2019 backlog is adjusted to exclude the M/V Elwha, the change in backlog between the two years becomes $72.0 million or an increase of 41.5% ($173.5 million adjusted backlog in FY2019 compared to $245.5 million in FY2020).

The 52-year-old M/V Elwha accounted for approximately 16% of the vessel preservation backlog, but its removal in FY2019 was not enough to offset the continued backlog increase due to a constrained preservation budget combined with an aging fleet. As a result of this combination, the vessel preservation backlog has increased 85.6% in the past five years; from $132.3 million in FY2016 to $245.5 million in FY2020.



FY2019

WSF decommissions M/V Hyak, reducing vessel preservation backlog by $2.1 million in FY2019

Washington State Ferries decommissioned the 52-year-old Motor/Vessel Hyak at the end of fiscal year 2019 (July 1, 2018 to June 30, 2019), decreasing WSF's vessel preservation backlog by $2.1 million. This represents a 1.2% decrease from FY2018, when the total backlog for WSF's fleet of 23 vessels was $208.6 million. Approximately 12% ($25.1 million) of the 2018 vessel backlog was attributable to the M/V Hyak. The preservation backlog is the estimated value of preservation activities that are overdue for completion.

The decommissioned M/V Hyak was replaced by the M/V Suquamish in FY2018 but retained through FY2019 to support warranty repairs. While its decommissioning kept the total backlog from growing (the backlog for the remainder of the fleet increased by $22.5 million between FY2018 and FY2019), that came at the cost of reducing the fleet from 23 vessels to 22.

In FY2019, WSF considered 18% (four) of the vessels in its fleet to be in poor condition—with more than 20% of systems overdue for preservation or renewal. Of the 22 vessels, 32% (seven) were in good condition—with less than 10% of systems overdue—and 50% (11) were in fair condition—with between 10% and 20% of systems overdue.

WSF's average annual gap between preservation needs and funding for vessels is expected to be $71.0 million per fiscal year for the 10-year period from 2017 to 2027. This is the average amount that the preservation backlog will increase each year unless aging vessels are decommissioned and replaced. WSF faces challenges in keeping pace with preservation requirements due to limited capital funding, an insufficient number of spare vessels, and a limited number of shipyards in the region. Construction of new vessels is essential to sustain a serviceable fleet.

FY2018

WSF uses a Practical Solutions approach to manage vessels assets in FY2018

Washington State Ferries transported approximately 24.6 million people in FY2018. Future ridership projections are trending upward due to population growth in the Puget Sound area. To accommodate this growth in the near-term, WSF is working to improve the ferry system. A new 144-vehicle, Olympic Class ferry, the Motor/Vessel Suquamish, entered service in October 2018.

WSF uses a risk assessment guide to help determine the funding needs of its vessel systems at the end of each fiscal year (July 1 through June 30), assigning each system a Condition Rating of 1, 2 or 3 depending on the likelihood of failure and the impact a failure would have on ferry service. The percentage of vessel systems in Condition Rating 3 (overdue for preservation/renewal) increased from 11% in FY2017 to 13% in FY2018.

The percentage of vessel systems in Condition Rating 3 helps WSF rate conditions for each vessel. In FY2018, WSF had nine vessels in good condition (with less than 10% of systems in Condition Rating 3), 12 vessels in fair condition (with 10% to 20% of systems in Condition Rating 3), and two in poor condition (with more than 20% of systems in Condition Rating 3).

WSF uses Practical Solutions methods in project prioritization to help select the appropriate preservation work at the right time and to effectively manage agency assets to minimize life cycle costs. In support of those methods, WSF's asset management planning considers the costs and benefits to lengthen asset service life through preservation activities and timely maintenance.

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