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NASA CR-152202 
N81 *17831' ” . 

llllliillllHIIIliillliilll 


STUDY OF CIVIL MARKETS 

FOR 

HEAVY— LIFT AIRSHIPS 


DECEMBER 1978 

PREPARED UNDER CONTRACT NO. NAS2-9826 

BY 

BOOZ* ALLEN APPLIED RESEARCH 
BETHESDA, MARYLAND 


PETER METTAM, BOOZ*ALLEN APPLIED RESEARCH DIVISION 
DAGFINN HANSEN, TRANSPORTATION CONSULTING DIVISION 
CHARLES CHABOT, TRANSPORTATION CONSULTING DIVISION 
ROBERT BYRNE, BOOZ*ALLEN APPLIED RESEARCH DIVISION 




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/ 


ABSTRACT 

The civil markets for heavy-lift airships (HLAs) are 
defined by first identifying areas of most likely applica- 
tion. The operational suitability of HLAs for the applica- 
tions identified are then assessed. The operating economics 
of HLAs are established and the market size for HLA services 
estimated by comparing HLA operating and economic character- 
istics with those of competing modes. The sensitivities of 
the market size to HLA characteristics are evaluated and the 
number and sizes of the vehicles required to service the 
more promising markets are defined. Important characteris- 
tics for future HLAs are discussed that are derived from the 
study of each application, including operational requirements, 
features enhancing profitability, military compatibility, 
improved design requirements, approach to entry into service, 
and institutional implications for design and operation. 


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111 





FOREWORD 


This final report presents the results of a study of 
civil markets for heavy-lift airships performed under NASA- 
Ames Contract No. NAS2-9826 by the Booz, Allen Applied 
Research and Transportation Consulting Divisions of Booz, 
Allen & Hamilton, Inc. 

Dr. Mark Ardema of NASA-Ames was the technical monitor 
of the program. The Booz, Allen program manager was Mr. 
Robert Byrne. The principal investigator was Mr. Peter 
Mettam. Prime contributors were Mr. Dagfinn Hansen and Mr. 
Charles Chabot. Others who made important contributions 
were Mr. Michael Lowman, Ms. Laura Moore, and Ms. Beatrice 
Ross. Inquiries regarding this study may be directed 
to Mr. Fred M. Marks, Of f icer-in-Charge for the project. 

Grateful acknowledgement is expressed to the Goodyear 
Aerospace Corporation and Canadair for supplying basic 
operational and cost data for candidate HLA systems. 

Recognition and thanks are also expressed to all those 
individuals and firms listed in Appendix A and mentioned 
throughout the body of the report. 

This report consists of two volumes: 

Volume I - Study of Civil Markets for Heavy-Lift 
Airships, Appendix A 

Volume II - Appendix B 

Volume II, Appendix B, contains proprietary information 
supplied by Goodyear Aerospace and Canadair and is not 
available, except to the NASA-Ames technical monitor. 




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TABLE 


O F 


CONTENTS 


Page 

Chapter Number 


1. 

Summary, Conclusions and Recommendations 

1-1 

2. 

Introduction 


2-1 

3. 

The Competitive Environment 


3-1 

4. 

Operational and Cost Studies 

for the HLA 

4-1 

5. 

Assessment of the Market for 
Lift Services 

Heavy 

5-1 

6. 

Estimation of Vehicle Sizes and Numbers 
to Satisfy Each Application 

6-1 

7. 

Review of Other Influences on 
Selection 

HLA 

7-1 

8. 

References and Bibliography 


8-1 

Appendlxe 

s 



A. 

Data Sources 


A-1 

B. 

Cost Analysis, Modeling, and 
Sensitivities for Two HLA 
Concepts (Proprietary) 

Bound 

Separately 


PI 


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O 


Vll 




LIST OF ACRONYMS 


AAR 

ACR^ 

AFC 

AFCS 

ASEA 

BBL 

BURD 

B&W 

CAB 

CACI 

CE 

CER 

CF 

CH 

COTS 

CREW 

CRF 

DCC 

DEV 

DLB 

DLBF 

DOC 

EPA 

FAA 

FAO 

FBW 

FC 

FCCj^ 

FCML 

FERIC 

FF 

FFV 

FH 

FMC 

FOCi 


Association of American Railroads 

Annual Capital Recovery Cost for Facilities or 

Support Item, i. 

Annual Fixed Cost 
Automatic Flight Control System 
(Swedish Electrical Equipment Manufacturer) 

Barrel 

Direct Labor Burden Cost per Project 
Babcock and Wilcox 

Civil Aeronautics Board 
Consolidated Analysis Center, Inc. 

Combustion Engineering 
Cost Estimating Relationship 
Cruise Fuel Oil Cost per Cruise Hour 
Cruise Hours 

Container Offloading and Transfer System 
Flight Crew Costs per Project 
Capital Recovery Factor per Year 

Annualized Development & Certification Cost 
Annualized Development & Certification Costs 
per Aircraft 

Direct Labor Burden per Vehicle per Flight Hour 
Direct Labor Burden Factor 
Direct Operating Cost 

Environmental Protection Agency 

Federal Aviation Agency 

Food and Agriculture Organization 

Fly-by-wire 

Flight Crew Cost per Flight Hour 

Facility or Support Capital Cost for Item, i. 

Flight Crew & Maintenance Ladaor Cost per Flight 

Hour 

Forest Engineering Research Institute of Canada 
Cost of Ferry Fuel & Oil per Ferry Hours 
Free Flight Vehicle 
Ferry Hours 

Federal Maritime Commission 

Facilities or Support Annual Operating Cost 
for Item, i. 


HHLCEDING PAGE BLANK NOT FILM 


:d 


IX 



FTL 

FUEL 

GE 

GNP 

H 

HF 

HEL 

HH 

HLA 

HLA 

HLAC 

IC 

ICC 

IMU 

INS 

IP 

ISA 

LASH 

LCM I 

LCU ’ 

LEAS 

LNG 

LPG 

LTA 

MAINT 

MARAD 

MBOE 

ML 

MLM 

MW 

N 

NASA 

NTSB 

OECD 
0/H 
O&M 
OPEC 
OS HA 

PAFC 

PEI 

PHS 

PL,P 


Flight Transportation LeJ^oratory 
Fuel Cost per Project 

General Electric 
Gross National Product 

Project Flight Hours 

Hover Fuel & Oil Cost per Hover Hour 
Helium Replacement Costs per Year per Vehicle 
Hover Hours 

Capital Cost Recovered per Year per Vehicle (in model) 
Heavy Lift Airship 

Heavy Lift Airship Capital Costs per Vehicle 

Internal Combustion 

Interstate Commerce Commission 

Inertial Measuring Unit 

Annual Cost of Insurance per Vehicle 

Insurance Premium 

International Standard Atmosphere 

(Barge Carrying Vessel) 

Landing Craft types 

Annual Cost of Capital Recovery per Vehicle 
Liquid Natural Gas 
Liquid Petroleum Gas 
Lighter- than-air 

Maintenance Labor and Material Costs per Project 

Maritime Administration 

Millions of Barrels of Oil Equivalent 

Maintenance Labor Cost per Flight Hour 

Maintenance Labor and Material Cost per Flight Hour 

Mega Watt 

Number of Vehicles 

National Aeronautics and Space Administration 
National Traffic Safety Board 

Organization of Economic Cooperation & Development 
Overhaul 

Operations and Maintenance 

Organization of Petroleum Exporting Countries 
Occupational Safety & Health Administration 

Prorated Annual Fixed Cost 
Prince Edward Island 
Precision Hover System 
Payload 


X 



POC 

POL 

RDT&E 

RICA 

Ro/Ro 

ROW 

SAS 

SEABEE 

SEC 

TCN 

TFAC 

TOC 

TOT 

U 

UAE 

UL,L 

UN 

UNCTAD 

VTOL 


Project Operation Costs 
Petroleum, Oil and Logistics 

Research, Development Test and Engineering 
Rail Industrial Clearance Association 
Roll-on/Roll-off 
Right-of-Way 

Stability Augmentation System 
(Barge Carrying Vessel) 

Securities and Exchange Commission 

Total Fly Away Cost of N Aircraft and Spares 
Cost of HLA and Spares, per Vehicle 
Total Operational Cost 
Total Project Costs 

Annual Utilization Hours 
United Arab Emirates 
Useful Load 
United Nations 

United Nations Conference on Trade and Development 

Vertical Take off and Landing 

Workshop on Alternative Energy Strategies 


WAES 





SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 




LIST OF 


TABLES 


Page 

Number 

1-1 HLA Development Summary 1-3 

1-2 HLA Market Summary 1-4 




1. SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 


1 . 1 Sununary 

A study of the civil markets for Heavy-Lift Airships (HLA) has 
been conducted, in which HLA are defined as combining buoyant and 
powered lift, and are designed to 

. Carry oversize and overweight payloads (compared to 

conventional transport modes) from 25 to 500 tons (or 
more as required by the application) 

. Travel over relatively short distances, up to about 200 
miles (or more as required by the application) 

. Hover with precision for significant periods. 

Domestic and worldwide heavy lift market areas have been 
assessed for HLA applicability and the more promising areas have 
been identified. Studies of HLA operations were conducted to de- 
fine the operational factors on which HLA design and costs depend. 
Detailed cost studies of specific heavy lift activities (case 
studies) have been performed in each of the promising areas to 
establish the costs of performing heavy lift services using current 
methods and to establish the methods by which the HLA could be used 
competitively. From these, an HLA "threshold cost" was determined 
(defined as the HLA job cost that makes performing the services 
with an HLA equal in cost to the conventional approach. ) The ex- 
tent of market penetration in each market area was assessed as a 
function of the extent by which the HLA threshold cost exceeded the 
HLA job cost estimate. 

HLA job cost estimates used in these market penetration 
analyses were made by averaging the job cost estimate for two 
different HLA concepts, the Goodyear Quadrotor and the Canadair 
Aerocrane. The estimates for each individual concept were not 
used, since these were based on proprietary data from Goodyear and 
Canadair. 

The number and size of HLAs required in each application were 
determined from the market assessment, the market penetration 
analyses, and the estimates of HLA costs. The study concluded with 
an assessment of the operational requirements of each application 
and other features that significantly influence HLA success. 

Specific guidelines for the study encompassed the following: 


1-1 



1 


. A broad analysis was needed, not encumbered by regula- 
tions or other institutional factors. Safety, environ- j 
mental, regulatory, and insurance implications should be 
noted but not limiting * 

. Vehicle parametric analysis or design definition work was 1 
to be obtained from previous studies of the Goodyear J 

Quadrotor HLA concept 

Consider vehicle operations in the 1980-1990 time frame 

Consider payloads from 25 tons to 500 tons, with partic- 
ular emphasis on the 50-100 ton payload range 

. Consider adverse weather impacts on the effectiveness of 
HLAs in each application 

. Consider HLA operation in rough terrain and/or remote 

areas . 

. HLAs with 75 to 100 tons payload must meet the Navy's 

short haul, heavy lift air system requirements whenever 
feasible 

. The study was to be as concept-independent as possible 

Foreign markets were also to be considered , 

. A maximum range of 200 miles was to be considered 

J 

. Assume that base operations provide only open mooring 

. Consider both Government and private financing alter- 1 

natives. 

Study results show a strong case for HLAs around the 75 tons ^ 
payload range, with major applications in logging, and other 
opportunities in unloading containers, placing electric power 
transmission towers, support of remote drill rig construction, and 
high rise construction. 

In addition, cases have been made for larger sizes (150 to 800 
tons) in support of power generating plant construction, offshore 
oil drill rig construction, general transportation and rigging, 
and strip mining. These results are summarized in Tables 1-1 and 
. The numbers of HLA presented are, in general, conservative 
since they assume no ferry requirements, and a full 2000 hours per 
y^ar utilization. Accounting for possible annual ferry requirements 
ir>troduces wide variations in these numbers; these variations 


1-2 






TABLE 1-2. H LA Market Summar 





























































depend critically on the specific characteristics of each applica- 
tion. Thus the effect of ferry must be assessed on a case-by-case 
basis. 


Discussion of the study results encompasses operational re- 
quirements, features that promote HLA profitability, military 
compatibility, probable institutional influences on HLA design and 
development, suggested modification to the current quadrotor point 
design, and an approach to entry into service. 


1.2 Conclusions 

The study concludes that several promising civil markets have 
been identified for heavy-lift airships, notably in logging, relief 
of port congestion, power transmission line erection, construction 
of power generating plants, and general transportation. A strong 
case for military commonality has been identified for a 75-ton 
payload HLA. The most promising long-term payload size is around 
75 tons, for which between 550 and 620 appear to be needed world- 
wide (10 percent of which occurs on the North American continent) 
primarily for the logging market, with some additional use in 
relief of port congestion, and construction of pipelines. The bulk 
of this market can alternately be served by about 1120 25-ton 
vehicles, providing they can be operated at relatively high speed 
(around 60 mph) rather than slow speed (around 25 mph) . The 25-ton 
payload also supports power transmission line construction, high 
rise construction and remote drilling sites. Larger payload 
vehicles are required in significant quantities; 6 to 11 200-ton 
to 300-ton vehicles to support power generating plant construction, 
and 6 to 7 500-ton vehicles to support offshore oil rig construc- 
tion, and general transportation. One each of 150-ton and 800-ton 
can also be used in support of power generating plant construction. ' 

To ensure that the markets identified can be captured, careful 
and detailed study is required to assess the implications of alter- 
native basing strategies, to more fully define the real life markets, 
and to optimize vehicle configurations, characteristics and costs. 
Entry into service may be effected through development of a govern- 
ment-sponsored prototype for military and civil applications, or by 
purely private development activities. In either event, very close 
coordination with the potential user community is essential, so as 
to prepare operational requirements that fully satisfy the potential 
customer, and to minimize adverse effects that may be introduced by 
institutional concerns. The earliest entry would appear to be in 
the logging industry, initially in direct competition with the 
helicopter, at payloads of about 25 tons. Further definition and 
refinement of HLA sizes, families and numbers depends on develop- 
ment of a wider technical, marketing, cost and operational data 
base . 


1-5 



1 . 3 Recommendations 


It is recommended that near-term technology development pro- 
grams should be developed that are directed toward HLA capabilities 
from 25 tons to 150 tons for several alternative concepts, but with 
emphasis on early service entry. It is further recommended that 
refined studies be undertaken to develop a more complete data base 
for determining vehicle costs, domestic market characteristics and 
basing strategies, the locale for early construction, vehicle sizes 
for development, and foreign market characteristics. 


1-6 



INTRODUCTION 


CHAPTER 2 




LIST OF 


FIGURES 


Page 

Number 


2-1 Heavy Lift Airship Concepts 

2-2 

2-2 Study of Civil Markets for Heavy-Lift 

Airships — Overview of Five-Task Program 2-5 





2 . 


INTRODUCTION 


The energy crisis has brought about a growing interest in the 
examination of alternative forms of transportation for many applica- 
tions. Airships or Lighter-Than-Air craft (LTAs) offer the poten- 
tial for efficient transportation at relatively low power, with 
the attendant advantages of low noise and low pollution. Studies 
have been undertaken (References 1 and 2) under NASA sponsorship 
to examine the potential missions for which LTAs may be most 
useful, and the feasibility of designs to perform those missions 
(Reference 3). As a consequence, a few major LTA missions were 
identified, one of which was that of "heavy-lift" — moving payloads 
that are beyond the weight and size limits of conventional trans- 
portation, mostly over relatively short distances. In January, 

1978, NASA-Ames awarded a contract to Booz, Allen Applied Research, 
to conduct a study of the civil markets for heavy-lift airships 
(HLAs) / the results of which would contribute to policy develop- 
ment concerning NASA support of R&D for such concepts. 

To date the potential market for such heavy-lift airships has 
been studied in terms of preliminary identification of areas of 
potential application. Prior to the study reported herein there 
was a need to evaluate the market size and identify the lift 
capability range of the vehicles considered for first introduction 
into service. 

The objectives of this study were therefore to; (1) refine 
the identification and description of the potential civil applica- 
tions of heavy-lift airships and identify the areas of most likely 
application, (2) perform a preliminary assessment of the operation- 
al suitability of such vehicles for the applications identified, 

(3) establish the operating economics of heavy-lift airships, (4) 
estimate the market size for heavy-lift airships by comparing their 
operational and economic characteristics with those of competing 
systems and (5) identify the sensitivity of the market size to 
vehicle lift capability and operational characteristics. 

The main feature of all heavy-lift airship concepts consists 
of the combination of a buoyant-lift envelope and a powered-lift 
system, together with all control and operational features neces- 
sary for an effective air vehicle. In one design approach, the 
Helistat proposed by Piasecki Aircraft Corporation, and adapted by 
Goodyear Aerospace Corporation (Figure 2-1) , the buoyant envelope 
is basically a conventional airship hull supporting the vehicle 
empty weight, while the powered lift system consists of multiple 
lifting-rotor systems supporting the useful load of cargo and 
fuel. The buoyant hull is expected to change from a non-rigid 
envelope design to a rigid envelope design as size increases. The 


2-1 


ORIGINAL PAGE ! 
OF POOR QUALITY 



GOODYEAR QUADROTOR 



CANADAIR AEROCRANE 
FIGURE 2-1. Heavy Lift Airship Concepts 


2-2 


powered lift is expected to require four S64-size helicopter rotor 
systems for the 75T payload concept illustrated in Figure 2-1, 
with increasing rotor size and/or numbers for larger useful loads. 
Most cargoes would be carried externally, and the HLA would oper- 
ate in a VTOL mode for most load and unload situations, utilizing 
a precision hover control technique and a cargo handling system 
under development for helicopter operations. Auxiliary propulsion 
would be used where more economical on long cargo transits, or on 
ferry flights. A second design approach which has been under 
consideration by Canadair Ltd., is known as the Aerocrane, and 
consists of a rotating spherical or lenticular buoyant center 
body, to which are attached four high aspect ratio horizontal 
wings, radially oriented and equally spaced around the center 
body. Each wing carries a power plant that drives the rotation, 
and controls for lift and lateral displacement of the vehicle. 

The non-rotating crew cabin and cargo hoist are suspended below 
the rotating body. This concept has been demonstrated by a free 
flying 1/10 scale model of a proposed design. 

Specific guidelines for the study prescribed in the Request 
for Proposal were as follows: 

. Since the study is concerned with relatively undeveloped 
vehicle concepts and markets, a broad analysis is needed 
that is not encumbered by existing or supposed regula- 
tions or other institutional factors. Safety, environ- 
mental, regulatory, and insurance implications should be 
identified and noted but not used to eliminate or narrow 
a potential application. 

. No new vehicle parametric analysis or design definition 
work is to be done in this study. This information will 
be obtained from previous studies. Any additional 
information relating to the vehicle designs which may be 
needed will be determined in consultation with the 
technical monitor. When specific vehicle- related 
information is required, the HLA concept on which 
Reference 1 is based, also called the "Helistat," is to 
be used. This vehicle concept is shown in Figure 2-1. 

. The study shall address a time frame that would allow 
operational vehicles in the 1980-1990 time period. 

. The study shall consider vehicles with payloads ranging 
from 25 tons to 500 tons. In particular, the merits of 
a vehicle in the 50-100 ton payload range will be estab- 
lished. 


2-3 



. The effects of adverse weather conditions on the use of 
the vehicles must be accounted for by including the 
impact of any need to avoid these conditions on the 
effectiveness of the vehicles in serving the various 
markets . 

. Consideration shall be given to the fact that the ve- 
hicles may be required to operate in rough terrain 
and/or remote areas. 

Vehicles with payloads between 75 and 100 tons shall meet 
the Navy's operational requirement for a short haul, 
heavy-lift air system whenever feasible. 

. The market study should be as concept independent as 
possible . 

Both domestic and foreign markets were to be considered 
in the study. Emphasis, however, was to be placed on the 
domestic market area. 

A maximum range of 200 miles was to be considered. 

During the course of the study the following additional 
guidelines and guideline clarifications were used. 

. In developing the operational and cost analyses it was to 
be assumed that the vehicle would be operated with open 
mooring at its base operation (no enclosure required) . 

Both Government and private development financing 
alternatives were to be considered in developing and 
evaluating costs. 

The study was broken down into five task areas as shown in 
Figure 2-2. The report closely parallels these tasks. In Task 1, 
literature searches and domestic and international surveys were 
conducted to develop information with which to identify potential 
applications, and cost/service characteristics of the HLA and 
competing systems. Task 2 efforts were directed toward defining 
the operational characteristics of the HLA. Specifically such 
items as the number of flight crew and ground support personnel, 
mooring techniques, facilities maintenance procedures, cargo 
handling methods and operating limitations were defined. Task 3 
was concerned with the development of a cost model for heavy-lift 
airships. It included such items as nonrecurring costs, develop- 
ment costs, and fabrication costs. The model developed also 
provided for variations in weight, number of vehicles produced, 
stage length, and other cost influencing factors. These provisions 


2-4 




2-5 




were to a large extent based on previously developed parametric 
relationships. In Task 4, detailed case studies were conducted 
for those applications which were found to be feasible and to have 
a high possibility of being competitive with existing heavy-lift 
modes. These case studies consisted of detailed evaluations of 
costs of existing modes of performing heavy-lift operations and 
the establishment of threshold freight rates which must be changed 
for HLA services in order to be competitive. The cost of operating 
an HLA in the same scenarios as the existing modes were then 
developed and compared to the case study results to determine the 
domestic and worldwide market size. Finally in Task 5, the sensi- 
tivity of the HLA market size to its operational characteristics 
and economics was evaluated and the size and number of heavy-lift 
airships required to satisfy the market was determined. Addition- 
ally, a series of desirable operational and design features were 
developed and discussed, based on the case studies and sensitivity 
analyses. These include operational requirements, enhanced pro- 
fitability features, military compatibility, preferred point de- 
sign requirements, institutional implications for design and oper- 
ation, and a strategy for entry into service. 



THE COMPETrriVE ENVlRONMEI\rT 




3. THE COMPETITIVE ENVIRONMENT 


Page 

Number 

3.1 Categorization of Economic and Transportation 


Infrastructure Development 3-1 

3.1.1 Urban 3-1 

3.1.2 Developed 3-2 

3.1.3 Undeveloped 3-2 

3.1.4 Remote 3-3 

3.2 Existing Modes of Heavy and Outsized 

Transportation and Lifting 3-3 

3.2.1 Rail Transportation 3-4 

> 3.2.2 Ocean and Inland Waterway 

Transportation 3-12 

3.2.3 Over-the-Road Handling 3-19 

3.2.4 Rigging and Crane Operations 3-22 

3.2.5 Free-Flying Vehicles 3-24 

3.3 Potential Applications for Heavy-Lift 

Airships 3-28 






LIST OF 


FIGURES 


Page 

Number 


3-1 

Railroad Clearances Generally Available 
in U.S. Shipping Areas 

3-9 

3-2 

U.S. Inland and Coastal Barging Charges 
Base Rates: 1976 

3-18 

3-3 

European Barge Towing Charges by 
Navigation Channel One-Way; 1976 

3-21 



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LIST 


O F 


TABLES 


Page 

Number 


3-1 U.S. Railcar Type and Load Capacity 3-5 

3-2 U.S. Railcar Loading Platform Length 

and Load Capacity 3-6 

3-3 U.S. Railcars of Various Load Capacities 3-7 

3-4 U.S. Railcar Heavy-Lift Movement Costs 3-11 

3-5 Restrictions on Small Vessel Navigation 

in the U.S. 3-14 

3-6 Vessel Restrictions on Western European 

Waterways 3-15 

3-7 U.S. River Barge Cost 3-17 

3-8 Flat Deck, Heavy-Lift, Oceangoing Barges 3-20 

3-9 Parametric Rate Predictor Model for 

Heavy-Lift Hauling 3-23 

3-10 Typical Costs of Rigging and Hauling 

Heavy Components 3-24 

3-11 Port Crane Rental Rates 3-24 

3-12 Operating Cost for Sikorsky S-64E and S-64F 3-26 

3-13 Potential Civil Markets for Heavy-Lift 

Airships 3-29 



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3. THE COMPETITIVE ENVIRONMENT 


This chapter describes the overall competitive environment in 
which an HLA system will have to compete for the heavy and outsized 
components to be transported and lifted over long and short dis- 
tances. This environment is described in terms of two major cate- 
gorizations : 

Economic and transportation infrastructure development 
. Capabilities of existing modes of transportation. 

This description is followed by an identification of the 
potential areas of application of the HLA. 


3.1 Categorization of Economic and 
Transportation Infrastructure Development 

The economic and transportation infrastructure development of 
regions are interdependent, and the discussion of one of these 
factors has to include the other. The categories used in this 
context are : 

. Urban 

Developed 

. Undeveloped 

. Remote . 

Regions falling into these categories are in no way defined 
by economic and infrastructure developments of entire industrialized 
nations, and areas fitting the definitions of all four categories 
may be found in both highly industrialized nations as well as in 
developing countries. The relative proportion of the four areas 
is expected to vary greatly between nations and regions of the 
world. 

3.1.1 Urban 


The urban area is characterized by a densely populated area 
in a city with a highly developed transportation infrastructure. 
This infrastructure is, however, frequently congested by traffic, 
and the possibility of transporting heavy and outsized cargoes and 
positioning cranes for their lifting or positioning is restricted 
either by regulations or limited physical clearances. 


3-1 



The economic activity in terms of requirement for heavy 
transportation and lift services in the urban areas is often high 
as a result of the high level of residential and commercial con- 
struction activity normally occurring in urban areas and the 
abundance of cargoes that pass through urban centers as part of 
port activities associated with major coastal urban centers. 

3.1.2 Developed 

The developed area is characterized by a highly developed 
transportation infrastructure capable of accommodating all heavy 
and outsized loads falling within the weight and dimension re- 
gulations and the capabilities of the roads. Cranes and other 
lifting equipment can gain easy access to perform lifting and 
erection jobs. 

The commercial and industrial activity in the developed areas 
are high, and areas falling into this category are the origins of 
most heavy and outsized loads transported to other areas. The 
developed areas are also the destination of a major portion of 
heavy and outsized loads for oil refineries and petrochemical 
plants and other industrial plants. 

3.1.3 Undeveloped 

The transportation infrastructure in the undeveloped areas is 
limited and often characterized by unpaved, narrow roads that can 
carry relatively small loads. Many of the roads are temporary 
construction site access roads. In cases where heavy or outsize 
loads have to be transported to these regions, highly specialized 
transporters are frequently required and road expansions, bypasses, 
and bridge reconstructions are at times necessary. 

The economic activity is low in the undeveloped regions. The 
principal economic activities that require heavy transportation and 
lifting service found in these areas are construction of: 

. Power plants 

. Refineries and petrochemical plants 

Mining sites 

. Petroleum and gas pipelines 

. Power transmission lines. 

In addition to the above list, logging and forestry, and in 
developing countries, agricultural production are also economic 
activities in these areas. 


3-2 



3.1.4 Remote 


The remote areas are characterized by an infrastructure that 
is either very limited or nonexistent. Most of these areas are 
inaccessible by conventional overland modes of transportation, or 
accessible only during parts of the year. The latter is the case 
of the muskeg areas in Northern Canada and Alaska, which are 
accessible only during the winter season when the Muskeg is frozen 
and covered with snow. The only vehicles that have unlimited 
access to these regions are free-flying vehicles, like helicopters 
and airplanes. 

The economic activity requiring heavy lift services in remote 
areas is limited to exploration for oil, gas, and other natural 
resources, construction of power transmission lines and pipelines, 
and the preparation of sites for construction projects. In cases 
where a road infrastructure is constructed to support the economic 
activity, the status of the area will shift from remote to undevel 
oped. 


Offshore sites are also defined as being remote areas. The 
only access to the offshore site is by barge, ship, or helicopter. 
The primary activity requiring heavy transportation and lifting 
services in the offshore areas is construction of stationary oil 
and gas drilling and production platforms. 


3.2 Existing Modes of Heavy and Outsized 
Transportation and Lifting 

It is unusual for a heavy or oversized component to be used 
and installed at the place where it is manufactured. Most com- 
ponents have to be hauled or lifted one or more times before 
reaching final destination. To serve the needs of shippers and 
consignees, specialized heavy and outsized cargo carriers are 
offering their services for transportation by rail, truck, barge 
ship, and through the introduction of the Sikorsky Skycrane heli- 
copters to heavy and outsize transportation, also by air. 

In addition, a number of crane rental and rigging operations 
offer their equipment and services to rig, lift, and position heavy 
and outsized components once they have reached their destination. 

A brief discussion of the capabilities and limitations facing these 
existing modes of transportation and lifting is presented below. 




3-3 



3.2.1 Rail Transportation 


The railways have been and are the major transporter of 
heavy and outsized cargoes. Loads of up to 80 tons can in most 
cases be carried by conventional railcars. For loads exceeding 
80 tons, specially constructed heavy haul railcars have to be 
employed. Both the railroads and shippers have invested in such 
specialized heavy haul railcars to transport heavy cargoes. The 
type and load capacity of railroad and privately owned heavy 
haul railcars are presented in Tables 3-1, 3-2, and 3-3. 

It is significant to note that only two of the 504 railroad- 
owned railcars have a load capacity exceeding 300 tons, that 
38 cars or 7.6 percent of the total have a load capacity between 
200 and 300 tons, -that 329 cars or 66 percent have capacities be- 
tween 100 and 200 tons, and that 135 cars or about 26 percent have 
capacities less than 100 tons. Of the 833 privately owned cars, 
of which 765, are owned by the Department of Defense, only 14 (2 
percent) have a loading capability exceeding 300 tons, and 90 
percent of the cars have loading capabilities between 80 and 99 
tons . 


The relative low availability of specialized heavy haul 
railcars, particularly in the upper load capabilities, is due to 
the low annual utilization of these railcars and often long 
empty hauls to position these cars. Average utilization of most 
specialized cars is 5.5 to 6 loaded moves per year, both short 
and long haul, for all these railcars. In 1975, the Association 
of American Railroads (AAR) recorded 3100 loaded hauls with all 
railroad and privately and railroad-owned heavy haul cars and in 
1976 the number was 3400 moves. This low utilization has made 
both railroads and private investors such as leasing companies 
reluctant to invest in these highly capital intensive cars. The 
cost of construction of these cars averages $0.50 per pound of 
weight capacity. 

The few heavy lift railcars have at times created periods 
of scarcities. Reservations for use of these railcars, which is 
coordinated through the AAR, are therefore made well in advance 
of the time the railcars are required. 

In cases where a cargo exceeding the load capabilities or 
length of any one car has to be carried, special components can 
be made by distributing the load or the length of the cargo over 
one or more railcars. 

The major limitations imposed upon the use of the railroads 
are clearances, which is another factor explaining the low 
utilization of the heavy haul railcars. Many of these railcars 


3-4 



TABLE 3-1. U.S. Railcar Type and Load Capacity 


s 



3 


























































TABLE 3-3. U.S. Railcars of Various Load Capacities 



3 -: 


icial Railway Equipment Register National Railway Publication 







can be used over a very limited extent over the railroad network. 
The general width and height clearances in the United States 
are ; 


Height Above 
Width Top of Rail 


90 percent of the track 10' 8" 
Limited interchange 10' 8" 
Participating railroads only 10' 8" 


15' 6" 
15' 9" 
17' 0" 


The maximum length of the load is a function of the width and 
the clearances that are available at each point. 


The clearances vary greatly between the different regions 
of the country, as is shown in Figure 3-1. One of the major 
problem regions is in the Northeast corridor of the United 
States, where a major portion of the oldest rail network is 
located. In this region a lot of narrow bridges, tunnels, and 
other obstructions are found. 


In cases where loads exceeding the general clearances have 
to be carried , a complete analysis of the alternative routes 
have to be investigated to avoid lines with obstructions or weak 
roadbeds. Frequently outsized and heavy cargoes have to be 
diverted long distances to avoid areas with clearance problems, 
and at times the railroads have to refuse heavy and outsized 
cargoes due to limited clearances. 

This problem has been aggravated in the Northeast by Conrail's 
elimination of service on some little used rail lines that were 
utilized to handle heavy loads. A joint rail industry committee. 
Industrial Clearance Association (RICA) , composed of members 
from both affected industries and the railroads, was formed to 
find solutions to these problems, but no major accomplishments 
have been forthcoming to solve the basic problems of rail clear- 
ances . 


Clearances in foreign countries are as a rule more restric- 
tive than in the United States. Some examples include the 
European International Standard Clearance, which is 3.15 meters 
(10.335 ft.) for width, and 4 meters (13.123 ft.) for height. 

The West German Federal Railroad (Deutsches Bundesbahn) can 
accept loads up to 4.65 meters (15.256 ft.) high and the standard 
European width of 3.15 meters, while the Italian State Railroad 
can accept loads up to 3.2 meters (10.41 ft.) wide and 4.3 
meters (14 ft.) high. Clearances in developing countries are 
also generally less than those found in the United States. 


3-8 


CRSGiNAL PAGE i 
OF POOR QUALITY 




WIDTH 

12'0" 

12'10" 

SHIPPING AREAS 

AREA 

HEIGHT (maximum) 

1 



New England 

2 


19'0" 

Upper Northwest & Southeast 

3 

19'3" 

19'3" 

Lower Northwest & Southeast 

4 

20'4" 

20'4" 

Mississippi Valley & Southwest 


SOURCE: Combustion Engineering 

FIGURE 3-1. Railroad Clearances Generally Available in U.S. Shipping Areas 


3-9 


















The cost of railroad transportation of heavy and outsized 
cargoes varies greatly depending upon the conunodity to be trans- 
ported, the distance, the competition from water modes of trans- 
portation, and special equipment required to transport the com- 
ponents. As part of a project sponsored by Lykes Bros. Steamship 
Co. and the Maritime Administration to investigate the feasibility 
of U.S. flag heavy-lift ships, a rail freight rate predictor model 
for heavy and outsized cargoes was developed (Reference 4 ) . 

This rate calculator model for U.S. rail freight rates is 
presented as Table 3-4. The model has been developed based on the 
rates for the following commodities: 

Machinery : Electrical generation equipment, gas turbines, 

metalworking machinery, construction machinery, material 
handling equipment, mining machinery, compressors, 
engines, dredges, boats 

Class 40 : Reactor and petroleum refining vessels, boilers, 

transformers 

. Commodity : Locomotives, earthmoving vehicles, road 

building equipment, mobile cranes, drill rigs. 

The calculation of heavy lift freight rates are based on four 
components ; 

. The base distance rate 

Railcar use charges, including demurrage 

. Special train service charges 

. Extra car charges. 

The base distance rate is the charge quoted in the tariff and 
is based upon the weight of the cargo, the type of commodity, the 
distance, origins, and destinations of the cargo. The origins and 
destinations are important because railroads like other businesses, 
price their services according to the competition for the cargoes. 

The Lykes study has characterized the rates by four different 
origins or destinations as follows: 

. Origin or destination is a deepwater port. At these 
points low cost alternatives by barge and ship are 
available, and rates are consequently low. 

. Origin or destination is on a navigable river and low 
cost alternative transportation by barge is available. 

The rates are therefore relatively low. 


3-10 



TAB LE 3-4. U.S. Railroad Heavy-Lift Movement Costs 


BASE CHARGE 


(Sum of fixed cost 

per ton plus fixed cost per ton-mile) 

Commodity 

IB) 1C) 

or (D) = $5/tonr>e 

Rate 

(A) 

= $0 

Class 40 Rate 1 

IB) 1C) 

or (D) = $24 /tonne 

Machy Rate j 

lA) 

= $1 9/tonne 

Commodity 

A. B 

@ 3.4<;/tonne-statute mile 

Rate 

C 

@ 3.8't/t-s.m. - 


D 

@ 4.354/t-s.m. 

Machy 

B 

@ 6-Oc/t— m. 

Machy \ 

A Only 

@ 5.6c/t-m, 

Class 40 / 

A,B 


Class 40 

C 

@ 6.4(t/ - m. 

Machy \ 

D 

@ 7.3c/t-m. 

Class 40 / 



TOTAL BASE CHARGE 



Rate X Weight * 
Setup Cost = $ . 


Cost 


Rate X Distance x Weight 
= $ 


RAIL CAR USE CHARGE 

(2 free days load & 2 for discharge) 

$6.70 per metric ton = 

7%c/stat. mile 


$. 

$. 


Demurrage (over 2 days) 

1st & 2nd @ $ 59 ea. 
3rd & 4th §) 118ea. 

5th & 6th @ 177 ea. 

7th & 8th @ 236 ea. 


Total Demurrage 

TOTAL RAILCAR USE CHARGE 


Loading Emptying 


SPECIAL TRAIN SERVICE CHARGE 

(for height add 2' for railcar to height of load) 

If height +2'iiB width greater than table, on map; 

S.T.S. Charge = $1 8/mile Southern 

19/mite • Western (Minimum $1 18) 
20/mile Eastern 


EXTRA CAR CHARGE 

(split load or length) (add demurrage above) 
Total number cars @ 60 Year = 

Weight charge @ $73/extra car 
Distance charge @ 75d/mile/ex.tra car 

TOTAL EXTRA CAR CHARGE 

TOTAL RAILROAD BILL 


. (4 maximum) 
.(not 1st car) 
.(not 1st car) 


$- 


3-11 



. Origin or destination is close to a navigable river and 
cargoes can be trans-shipped to barge after a short haul 
by overland modes of transportation. 

Origin or destination is such that rail will be the only 
alternative except for truck. The rates are therefore 
relatively high. 

The rail use charge refers to the cost of using the cars. The 
charges vary greatly depending upon the type and size of car. The 
charges presented in the model are an average cost based on the 
costs of a number of railroad-owned cars. 

In cases where the dimensions of the cargo to be transported 
exceed the clearances on the route, special trains often have to be 
set up to transport the cargoes. A generalization of the clearances 
in the United States is presented as Figure 3-1. The height clear- 
ance includes the car bed height. To estimate the height clearance 
of a cargo loaded on a depressed center flatcar, approximately 2 
feet has to be added to the height of the cargo. 

When the length of the cargo exceeds 60 feet and cannot fit on 
one flatcar, one or more extra cars are frequently required at 
either end of the load or in the middle. As many as four extra 
cars may be required. 

It should be noted that the railroad freight rates do not 
include loading and unloading , because these have to be arranged by 
either shipper or consignee. 

No attempt has been made to draw conclusions on the costs of 
foreign railroad freight rates, since no published tariffs are 
available comparable to those published with the Interstate Com- 
merce Commission (ICC) in the United States. It is assumed, 
however, that foreign railroad freight rates are relatively com- 
parable to those charged by United States railroads. 

3.2.2 Ocean and Inland Waterway Transportation 

There are virtually no dimension or weight limitations on the 
heavy and outsized cargoes to be carried by vessels on barges. 
However, these limitations do exist: 

Accessibility by barge or vessel of coastal or inland 
waterway port or barge landing. 

Availability of cranes to load and discharge the cargo 
when the ship or barge is not self-sustaining in terms of 
cargo handling and equipped with adequate ramps or 
cranes and derricks. 


3-12 



. Many origins and destinations are not located close to 
coastal or inland waterways, ports, or barge landings 
requiring one or more trans-shipments. 

The inland waterway system of the United States is an exten- 
sive network of canals and waterways to accommodate the U.S. domestic 
and international trade transported in barges and vessels. Table 
3-5 provides a summary of the dimension restrictions that exist in 
the U.S. waterway system. 

The inland waterway system in Europe is centered on the Rhine 
River and its tributaries. Man-made canals connect the Rhine with 
other major rivers and canals in West Germany, France, Belgium and 
the Netherlands. The major European waterways and their dimension 
restrictions are presented as Table 3-6. Virtually all of these 
waterways and canals can accept the European standard barges of 80 
m X 9.5 m x 2.5 m 262.4' x 30.9' x 8.1'), and upgrading and expan- 
sions are constantly undertaken to expand the capabilities of these 
waterways. Some of the major expansion projects currently underway 
include : 

. The Danube-Main-Rhine Canal, which will connect the Rhine 
and the Danube rivers and enable barges and small vessels 
to travel entirely on the waterways between the North Sea 
and the Black Sea is scheduled to be completed at European 
gauge by 1981. 

. The Amsterdam- Rhine Canal is to accept push-barge convoys 
of 11,000 tons by 1980. 

. The Rhone and Saone rivers are being expanded and are 

expected to be European gauge (1350 ton capacity) some- 
time in 1978 between Fos and St. Symphonien. 

. In Belgium the Albert Canal between Antwerp and Liege is 
upgraded to 9000 ton push-barge convoys, and the Meuse 
and the Juliana canals are expanded to the European 
gauge . 

. Finally the Euscat River is being expanded to link with 
the canal systems in the Netherlands and France. 

The British inland waterway system is characterized by its 
limited gauge. The only major inland waterway in the United 
Kingdom that can accommodate barges or ships of European gauge is 
the lower reach of the Thames River, which is accessible to sea- 
going vessels up to 11,000 tons dwt and the Manchester Ship Canal. 

All other waterways have major draft and size limitations, and the 
majority of these waterways are accessible to laden barges of less 
than 300 tons. 


3-13 



TABLE 3-5. Restrictions on Small Vessel Navigation in the United States 


■ 


RIVER 

DISTANCE 
(in miles) 

FROM 

TO 

RESTRICTIVE DIMENSION 

LENGTH 

WIDTH 

DEPTH 


Mississippi 

734 

Mouth 

Memphis, 



25' 

108.7' 




Tenn. 






1,166 

Mouth 

Alton, III. 

600' 

110' 

9' 

82.4' 


1,463 

Mouth 

Rock Island 

360' 



63.0' 




111. 






1,884 

Mouth 

St. Paul, 




59.6' 




Minn. 





Mississippi 

1,000 

Mouth 

Mound City, 

600' 

110' 

12' 

99.7' 




III. 





& Ohio 

1,983 

Mouth 

Pittsburgh, 



9’ 

67.9' 




Penn. 





& Allegheny 

2,005 

Mouth 

Freeport. 

360' 

56' 

9' 

40.0' 




Penn. 





& Monongaheia 

1,941 

Mouth 

Morgantown, 

600' 

84' 

9' 

27.7' 




W. Va. 





& Kanawha 

1.873 

Mouth 

Charleston, 

360' 

56' 

9' 

51.3' 




W. Va. 





Mississippi 

1,466 

Mouth 

Alton, III. 

600' 

110' 

9' 

82.4' 

& Illinois 

1,218 

Mouth 

LaGrange, 




69.7' 




Lfii D 






1,377 

Mouth 

Chillicothe 




58.8' 


1,388 

Mouth 

Starved Rock 




39.8' 




Lock fii Dam 






1.455 

Mouth 

Chicago, 


97' 






III. 





Mississippi 

1.649 

Mouth 

Knoxville, 

600* 

110' 

9’ 

41. O'Min 




Tenn. 





fit Tennessee 







1 

Gulf Intra- 








Coastal 

900 

Brownsville 

Florida 

640' 

56' 

9'- 

60.0' Norm 



Texas 




12' 

48.0' Min 

Hudson 

125 

Mouth 

Albany, N.Y. 

— 



35' 


River 








St. Lawrence 

1.304 

Mouth 

Duluth, Min. 

766' 

80' 

27' 

123' 

Columbia 

97 

Mouth 

Portland, Ore. 



43' 

120' 


126 

Mouth 

Bonneville, Ore. 

500' 

76' 

27' 

135' 


166 

Mouth 

The Dalles, Ore. 

675' 

86' 

14' 

79' 


483 

Mouth 

Lewiston. Id. 



12' 

60' 

Sacramento 

78 

Mouth 

Sacramento, 

— 

200' 

32' 

110' 




Calif. 





Warrior 

420 

Mouth 

Birmingham, 

460' 

95' 

9' 

N.A. 




Ala. 





Alabama 

340 

Mouth 

Montgomery, 



7 

N.A. 




Ala. 






SOURCE: U.S. Army Corps of Engineers 


3-14 


ORIGINAL PAGE 
OF POOR QUALITY 


I 

I 











TABLE 3-6. Vessel Restrictions on Western European Waterways 


RIVER SECTION 

LENGTH 

VESSEL MAXIMUM DIMENSIONS 

LENGTH 

BEAM 

DRAFT 

HEIGHT 

Rhine 






Rotterdam- 

101 Km 

185 M. 

22.8 M. 

3M. 

9.1 M. 

Nijmegen 


,606' 10" 

74' 8" 

9' 10" 

29' 7" 

Nijmegen- 

543 Km 

185 M. 

22.8 M. 

2.5 M. 

9M. 

Karlsruhe 


606' 10" 

74' 8 " 

8’ 1" 

29' 4" 

Karlsruhe- 

61 Km 

180 M. 

22.8 M. 

2.5 M. 

9M. 

Strasbourg 


590' 4" 

74' 8" 

8'1" ' 

29' 4" 

Strasbourg- 

121 Km 

180 M. 

22.4 M. 

2.5 M. 

7M. 

Basle 


590' 4" 

73' 6" 

8' 1" 

22' 9 ' 

Seine 






LeHavre-Rouen 

121 Km 

180 M. 

16 M. 

3M. 

7 M. 



590' 4" 

52' 6 " 

9' 10" 

22' 9" 

Rouen-Paris 

214 Km 

180 M. 

16 M. 

3M. 

— 



590' 4" 

52' 6" 

9' 10" 

— 

Neckar 






Mannheim- 

202 Km 

110M. 

12 M. 

2.3 M. 

i 

5.1 M. 

Stuttgart 


360' 6" 

39' 3" 

7' 6" 

16' 6" 

Main 






Mainz-Nurenberg 

462 Km 

190 M. 

12 M. 

2.5 M. 

4.6 M 



623' 1" 

39' 3" 

8' 1" 

15' 

Elbe 






Brunsbuttelkoog- 

89 Km 

— 

— — 

10 M. 

— 

Hamburg 


— 

— 

32' 8" 

■ 

Hamburg-Bertin 

320 Km 

80 M. 

9.5 M. 

1.9 M. i 

41 M. 

(Via Elbe-Havel Canal) 


262' 6" 

31' 2" 

6' 

13' 6" 

Mosel 






Koblenz-Nancy 

348 Km 

170 M. 

12 M. 

2.5 M. 

6.4 M. 



557' 8" 

39' 3" 

8' 1" 

20' 8" 

Weser 






Bremerhaven- 

65 Km 

— 

— 

8.5 M. 

— 

Bremen 


— 

— 

27' 9" 

— 

Bremen-Minden 1 

165 Km 

80 M. 

9.5 M. 

2M. 

4.4 M. 



260' 

30' 9" 

6' 7" 

14' 3" 

Nittelland Kanal 




! 


Minden- Hannover 

131 Km 

80 M. 

9.5 M. 

2M. 

4.4 M. 



260' 

30' 9" 

6' 7" 

14' 3" 

Escaut 






Dunkerque- Lille- 

197 Km 

95 M. 

11.5 M. 

2.7 M. 

4.5 M. 

Valenciennes 


309' 

37' 4" 

8' 8" 

14' 8" 

Saone- Rhone 






Marseilles-Lyon 

330 Km 

80 M. 

12.0 M. 

2.0 M. 

N.A. 



260' 

39' 3" 

6' 7" 


Danube 

2450 Km 

230 M. 

24.0 M. 

4.0 M. 

N.A. 



754' 5" 

78' 8" 

13' 1" i 



SOURCE: European Cartographic Institute 


3-15 
















The USSR has an extensive network of rivers and man-made 
canals, which connects its major industrial cities and distribution 
points with ports located in the Baltic and Black seas. In Asia, 
the Euphrates and the Tigris rivers are navigable, and both rivers 
are important features in the transportation infrastructure of 
Iraq. The rivers of Indus in Pakistan, Hoogly and Ganges in India, 
Brahmaputra in Bangladesh, Irrawaddy in Burma, Chao Phraya in 
Thailand are navigable, but most of the river traffic is by primi- 
tive river boats. In Southeast Asia, the Mekong River is navigable 
to oceangoing vessels into Cambodia and Laos via Vietnam. 

The two largest rivers in China, the Yellow and Yangtze rivers, 
along with a major network of ancient and newly constructed canals, 
figures importantly in the transportation infrastructure of China. 
Most of the traffic is by primitive boats and craft not capable of 
carrying heavy cargoes. 

In South America the Amazon River is navigable to Iquitos, 

Peru and scheduled service by ocean liners with heavy lift cranes 
is available to Manaus, Brazil. Elsewhere in South America the Rio 
de La Plata/Rio Parana river system of internal waterways and 
canals is currently under construction in a joint venture of the 
governments of Brazil, Argentina, Uruguay, and Paraguay. Deep 
draft oceangoing vessels can currently proceed as far north as 
Santa Fe, Argentina. 

Virtually all existing barges and ships can transport heavy 
and outsized cargoes in the holds or on deck, if the hatch openings 
are too small to accommodate the cargoes. In 1975 there were more 
than 2000 ships worldwide that could lift loads greater than 50 
tons, and a total of 52 vessels that could lift more than 200 tons. 

In cases where the vessel's gear cannot handle the load, a number 
of major ports are equipped with heavy lift cranes to load and 
unload cargoes. Many barges and vessels are now equipped with 
roll-on/ roll-off ramps, over which the heavy and outsized cargoes 
can be rolled on and off while remaining on a trailer or transporter. 
In addition, several U.S. and foreign barge and ship-operating 
companies have invested in specially equipped ships and barges to 
accommodate the transportation requirements of shippers and con- 
signees of heavy and outsized cargoes. The cost of water transpor- 
tation, whenever it is available, is with few exceptions lower than 
transportation by overland modes of transportation. 

The study by Lykes Brothers Steamship Company also developed 
a rate calculator model for estimation of barge freight costs. 

This barge freight rate calculator model is presented as Table 3-7. 

A graphical description is presented as Figure 3-2. The barge 
freight rates are normally calculated based on the distance traveled 
plus the weight of the cargo preset for a minimum weight. The 


3-16 



TABLE 3-7. U.S. River Barge Cost 


Barge Size 


SeaBee Units of 2 @ 97' x 35' 


Minimum Weight 
Carriage Towing 

800' S.T. in 1 or 2 barges 


J = 200' X 35' or less 
SJ = 200' - 240' X 35' - 45' 
S = 240' X 45' or more 


600S.T. 1200S.T. 

1000 S.T. 1800 S.T. 

12(K) S.T. 2400 S.T. 


CARGO WEIGHT 


/MINIMUM 


USE 


TOWAGE 


CARRIAGE 


RIVER ROUTING ■= 


BASE CARRIAGE/BARGE TOWAGE/BARGE 



DESIGNATORS 

SET UP 

RATE 

SET UP 

RATE 

M = 

Main Stream Mississippi and 
Ohio Rivers 

$3,900 + 

$6.80/Mile 

-$800 + 

$6.61/Mile 

C 

Combination M & One Tributary 
River or Gulf Intracoastal Waterway 

$4,800 + 

$7.35/Mile 

0 + 

$6.61/Mile 

T 

Two Tributary or Gulf I.C.W.W. 
Movements 

$5,900 + 

$8.90/Mile 

+ $700 + 

$6.61/Mile 


BASE RATE = $. 
MULTIPLIER ° — 

MULTIPLIER = 

BARGING BILL = $_ 


JBARGE 


100 % 

% 

% 


JBARGE 


At 1.000 Metric Tonnes 

For Barge Size & Heavy Lift Weight 

Actual Weight or Minimum -r 1 ,000 M.T. 


EXTRAS FOR CARRIERS BARGES 
DECK 

HL 200S.T.OR J=150% 

HL 200S.T.OR SJ = 200% 

HL 200 ST. OR S = 300% 
MINIMUM = $4,184 


HOPPE R 

HL 100 - 200 ST. = 150% 
HL 200 S.T. = 200% 

MINIMUM = $4,184 


EXTRAS FOR TOWING BARGES 
ALL TYPES 

J= 100%; MINIMUM $750 
SJ = 150%; MINIMUM $750 
S = 200%; MINIMUM $1,500 
SEABEE UNIT = $700 Loaded; 

MINIMUM = $600 Empty 
EMPTY = NO CHARGE 


3-17 







rates will differ depending upon the waterways on which the cargo 
is to be carried. The rates are lower on the main waterways than 
on the tributary rivers due to the fact that larger tows are pos- 
sible on the main waterways. 

Two different rates are presented: 

. Transportation in carrier-owned barges 

. Transportation in shipper— owned barges. 

When the cargo is transported in a carrier— owned barge, the freight 
charge covers both the towing charges and the rental of the barge. 

In the case that the shipper owns barges, he will only have to pay 
the towage charges. Both these rates are included in the model. 

The European barge costs are higher than those charged by 
companies operating on the U.S. waterways. Charges on various 
European waterways are presented as Figure 3-3. The charges 
presented in this figure include only the towage charges. A good 
estimate of the total barge costs (i.e., towage and barge charter) 
can be derived by adding the barge costs presented in Table 3-8 to 
the towage cost in Figure 3-3. 

3.2.3 Over-the-Road Handling 

In the United States over-the-road transportation of heavy and 
outsized cargoes is mainly performed by members of the Heavy and 
Specialized Carriers Conference of American Trucking Association. 

The revenues of the operators are estimated to be $2.5 billion per 
year. The inventory of equipment includes a total of 50,000 power 
units and 70,000 trailers of which 4000 trailers have a capacity to 
handle loads of 100 tons or more. The type of heavy lift equipment 
available to the heavy haulers includes all types of trailers and 
transporters to handle any conceivable type of load. In cases 
where no equipment exists to transport the equipment of a customer, 
the heavy hauler can often engineer special equipment to accommodate 
it . 


The major limitations imposed upon over— the— road haulers are 
the restrictions imposed by federal, state, and local highway 
authorities and physical size and weight constraints and clearances 
imposed by bridges, houses, roads, overhead utilities, and other 
constraints. Prior to undertaking a transportation job with 
dimensions or weights exceeding those of the limitations imposed by 
the regulations or possible physical constraints, the heavy haulers 
perform a thorough survey of the alternative routes, contact the 
highway authorities to obtain the necessary permits, and select the 
best route available under the circumstances. In some states the 
permits for over-the-road transportation is granted only after 
evidence is presented that the cargo cannot be accommodated by 


3-19 





WAY BARGE T 







other modes of transportation, i.e., rail, barge, or ship. In some 
instances the hauler will have to improve and expand existing 
roads, build bypass roads to avoid physical constraints, strengthen 
existing bridges or install temporary new bridges, and even re- 
locate houses to enable the load to pass. 

Many of the over- the-road haulers have expanded their services 
to include intermodal transportation by combination truck-rail, 
truck-barge and truck- ship, whereby the hauler arranges for the 
total haul by all modes of transportation from origin to destina- 
tion. Some of the haulers have even expanded their sphere of 
operation to cover the entire world and offer their services 
between origins and destinations worldwide through subsidiaries and 
agents located in all major centers of the world. 

A number of variables are used by hauler/riggers to calculate 
the charges. Each job is different, and it is bid as a total 
package with loading, unloading, road survey, special equipment, 
and other charges included. Based on tariffs published by haulers/ 
riggers, Lykes Brothers developed a parametric rate predictor 
model. This model is presented as Table 3-9. It should be noted 
that charges for bypass roads, bridge strengthening and recon- 
struction, expansion of roads, construction of barge landings, and 
other charges that are peculiar to each situation, will be addi- 
tional to the charges presented in the parametric model. 

3.2.4 Rigging and Crane Operations 

The services offered by rigging and crane operators are 
closely related to the over- the-road haulers, and in many instances 
these services are performed by the same companies. Like the heavy 
haulers, most riggers and crane rental operators are members of the 
Heavy and Specialized Carriers Conference of the American Trucking 
Association. While the haulers provide the transportation services, 
the riggers and crane rental operators normally provide the equip- 
ment, manpower and expertise to erect, slide, lift, hoist, and 
emplace heavy and outs i zed equipment at power plants, transformer 
stations, refineries and various construction sites, and onto and 
off railcars, trucks, barges, and ships. 

The equipment owned and operated by riggers and crane rental 
operators ranges from small mobile cranes to gin poles that can 
lift and erect thousands of tons in addition to hoists, jacks, 
winches, dollies, powerful forklifts. In some cases, the riggers 
and crane operators rent the equipment to a customer so that he can 
perform the job with his own manpower. In most cases the riggers 
contract to perform the entire job and provide the equipment, 
skilled manpower, and expertise accumulated through the execution 
of numerous prior jobs. 


3-22 


I 



TABLE 3-9. Parametric Rate Predictor Model for Heavy-Lift Hauling 


BASE CHARGE 

Setup Cost » $19.25 x weight (metric tonnes) ~ 5 

Transport Cost = $0.40 x weight x distance {S.M.) = S 

Total Base Charge “ S 


SIZE EXTRAS • (use only the highest multiplier for oversize) 


Length 

Multiplier 

Width 

Multiplier 

Ht. for Ground 

Multiplier 

45’-55' 

1.05 

8'-9' 

1.05 

IZ-U' 

1.05 

55-65’ 

1.10 

9'-10’ 

1.10 

13'14' 

1.10 

65'-70' 

1.20 

lO'-IV 

1.15 

14-15' 

1.15 

70'-8Cr 

1.30 

ir-i2' 

1.20 

15-16' 

1.20 

80'. 100* 

1.40 

12'- 13' 

1.25 

16’. 17' 

1.25 

10a 

1.50 

13'- 14' 

1.30 

17'- 18' 

1.30 



14'- 15' 

1.35 

18'-19' 

1.40 



15'-16* 

1.50 

19' 

1.50 



16-17' 

1.65 





17' 

2.00 




GEOGRAPHY EXTRAS 
South of Tennessee 
North East and Midwest 
Mountainous Areas 
South West 


= 1.00 Multiplier = Base 

> 1 .05 Multiplier 

= 1.10 Multiplier 

« 0.95 Multiplier 


COMMODITY EXTRAS 

Steel Fabrications 1.00 Multiplier = Base 

Metalworking Machinery 1.10 Multiplier 

Rotating Mechanical Machinery 1.20 Multiplier 

Rotating Electrical Machinery 1.30 Multiplier 


TOTAL BASE AND EXTRAS 

$ Base charged x largest size Extra Multiplier k Geography Extra 
Multiplier x Commodity Extra Multiplier * S 


EQUIPMENT EXTRAS 

Two-Way Radios @ $30/tractor 

Less than 100 tonnes Special Trailers 35"-40" @ 10^/Mile ea 
Less than 100 tonnes Low-Boy Trailers 6"-35" 154/Mile ea 
if length over lOff, or if weight over 150 tonnes, 
extra driver and tractor ® $1 2.75/hour loaded. 

Special heavy lift trailers @ $2.00/tonne/day 
Return of tractor ar>d any trailer @ 74c/Mil« empty 
Over 3 hours, demurrage for trailers @ $7. 00/hour 
Over 3 hours, demurrage for tractors @ $1 3.00/hour 
(Dunnage for securing not included.) 


LABOR EXTRAS 

If over 10 hours, extra driver @ higher 


154/ loaded mile 
or 

$15.00/hour 

664/loaded mile 


If over 1 T wide, escort car ^ higher or 

(minimum $50) $10. 75/hour 

If over 16' wide. Flagmen $5. 50/hour (loaded 81 empty) 


$ 

$ 

$ 

S 

$. 

$ 

$ 

s 


$ 

$. 

$ 


SERVICE EXTRAS 

If cargo L 55' or W 10' or H 15' above ground Special 
Permits 9 $1B/state $ 

If call at marine terminal, charge & $4.40/MT ” $. 

If value $5,500 per metric tonne, inturarKe at 

504/$ 1.000 over - $. 

If height or width 20'. surveying route 9 $ 1.70/mile = $. 

(Raising telephone & power lines not included) 

TOTAL EQUIPMENT. LABOR. AND SERVICE EXTRAS = $ 

TOTAL UNIT TRANSPORT Bl LL = $ 


SOURCE: Lykes Bros. Steamship Company 


3-23 


The cost of rigging services varies greatly depending on the 
size of the equipment rigged, and the complexity of the job. Some 
typical costs for the rigging and short haul of heavy components 
was provided by one of the major crane and rigging operations in 
the United States — ^Williams Crane and Rigging of Richmond, Virginia. 
These typical costs are illustrated in Table 3-10. 


TABLE 3-10. Typical Costs of Rigging and Hauling Heavy Components 


EQUIPMENT 

WEIGHT 

TOTAL COST 
FOR HAUL 
UP TO 
30 MILES 

MANPOWER 
AND RIGGING 
COST OF 
TOTAL 

EQUIPMENT 

COST 

RIGGING 

TIME 

TOTAL 

TIME 

40100 tons 

$1400-1800 


$400-800 

4 hrs 

8-12 hrs 

100175 

$2200-2300 

$1000 

1200-1300 

4 hrs 

0-12 hrs 

200400 

$100,000-125,000 


50,000-65,000 

4 days 

10-30 days 


The above costs include unloading of the components from a 
Schnabel railcar, and clean-up and reassembling of the railcar. 

The reassembly of the railcar is necessary because the Schnabel 
cars have to be disassembled to take the load off. The above cost 
furthermore includes the haul to the construction site, unloading 
at the site, jacking the component up into the building and skidding 
it into place. 

Typical port crane rental charges for loading and discharging 
ships and barges were compiled by Lykes Brothers Steamship Company 
for rental of various crane sizes. The charges appear in Table 3-11. 


TAB LE 3-1 1 . Port Crane Rental Rates 


CRANE 
CAPACITY 
(METRIC TONNES) 

DAILY SHORE AND FLOATING 
CRANE RENTAL COST 

LOW 

TYPICAL 

HIGH 

100 

$ 300 

$ 1,700 

$ 4,200 

200 

3,400 

5,800 

13,000 

300 

7,600 


26,000 

400 

7,600 


40,000 

500 



47,000 

600 



54,000 


3.2.5 Free-Flying Vehicles 

At the present time the only heavy lift free-flying type of 
vehicles available in the free world is the Sikorsky S-64E "Sky- 
crane” helicopter. All but one of these helicopters currently in 


3-24 


















operation is primarily engaging in logging in the Pacific Northwest 
of the United States. The one "Skycrane" not engaged in logging 
is operated by Evergreen Helicopters in support of the construction 
industry. The primary functions performed by this helicopter are: 

. Emplacement of preassembled towers for contractors of 
power transmission lines 

. Emplacement of heat/ventilation/air conditioning units 
on commercial and residential buildings for building 
constructors . 

In addition, the helicopter is performing complex lifting 
jobs that are impossible, costly, or time-consuming by conventional 
means of lifting, and transporting equipment for remote construc- 
tion projects and oil and gas drilling operations. 

Outsized dimensions pose no problem for components to be 
transported or lifted by heavy lift helicopter. There are, how- 
ever, two major limiting factors for the use of heavy lift heli- 
copters : 


Lifting capability 

. Cost of acquisition and operation. 

The lifting capability of the Sikorsky S-64E is 18,650 lbs 
(at 2,000 ft. ISA), which in many cases tend to exclude the Sky- 
crane from possible markets. Sikorsky is currently marketing a 
civilian version of the CH-54 military helicopter, the S-64F. 

This craft has a lifting capability of 23,150 lbs. (at 2,000 ft. 
ISA) . To date no commitments for the purchase of the S-64F have 
been reported. 

The high cost of acquisition and operation is the second 
limiting factor for the marketability of a heavy lift helicopter 
in competition with conventional means of transportation and 
lifting. The fixed and variable operating costs per hour of the 
S-64E and S-64F at various annual utilization factors are presented 
as Table 3-12. The utilization goal of Evergreen Helicopters for 
the one Skycrane serving the construction industry is a total of 
1000 hours per year including ferry time between each job. At the 
present time the annual utilization has been between 750 and 900 
hours. The average ferry time between each job is 8 hours. The 
operating hours of the Skycranes used in logging operations are 
higher and range from 1500 to 2000 hours per year. 


3-25 


ORJGiNA!- PAGE 
OF POOR QUALITY 



TABLE 3-12, Operating Cost for Sikorsky S-64E and S64F 


ITEM 

1 

S-64E 

S-64F 

1. INVESTMENT COST 



Flight Equipment 

2,700,000 

6,100,000 

Support Equipment 

35,000 

43,000 

Spares 

212,000 

212,000 

Dynamic components 

"Power by hour" 

1,830,000 

Total 

2,947,000 

8.184,000 


Depreciation (10 yrs - 25%) 
Interest (10% - 60% ave. value) 
Insurance (8% fit equip) 
Personnel (per single shift) 
Pilots 
Co-Pilots 
Mechanics 


Burden 25% 

Total personnel 
Helium replacement 
Env. refurbishment 

Total Fixed Annual 



951,345 


1,930,340 


Fuel Aero 50 gal/hr 
X $1. 00/gal 

S64 525 gal/hr x .50/gal 
Oil 

Replacement parts A/F 
Dynamic System 0/H 
Engine 0/H & inspect. 
Misc. equip. 0/H 


262.50 

13.12 

125.00 
409.60 

210.00 


262.50 

13 
125 
463 
210.00 


Total Hourly 


1,020.22 


1,074.42 


3-26 
























TABLE 3-12. Operating Cost for Sikorsky S-64E and S-64F (Continued) 


ITEM 

S>64E 

S-64F 

4. Total Cost/Fit hr 



Utilization hr$/yr 

1,000 

1,000 

Fixed cost/hr 

951.35 

1,930.34 

Hourly cost 

1.020.22 

1,286.89 

Total cost/fit hr $ 

1,971.57 

3,217.23 

Utilization hrs/yr 

1,500 

1,500 

Fixed cost/hr 

634.23 

1,286.89 

Hourly cost 

1,020.22 

1,074.42 

Total cost/lit hr $ 

1,654.45 

2,361.31 

Utilization hrs/yr 

2,200 

2,200 

Fixed cost/hr 

509.13 

954.13 

Hourly cost 

1,020.22 

1,074.42 

Total cost/fit hr $ 

1,529.35 

2,028.55 

Utilization hrs/yr 

3,000 


Fixed cost/hr 

429.62 

755.95 

Hourly cost 

1,020.22 

1,074.42 

Total cost/fit hr $ 

1,449.84 

1,830.37 


3-27 










3.3 Potential Applications for 
Heavy-Lift Airships 

Based on a literature search, a survey of and discussions 
with trade associations, government agencies, international organ- 
izations, users and purveyors of heavy lift services, equipment, 
and consultants with interest in the subject of heavy and outsized 
transportation and lifting, a list of potential applications for 
the heavy lift airship was developed. The data sources reviewed 
and the organizations interviewed are presented as Appendix A. 

Some of the organizations and companies currently involved in some 
aspect of transportation and lifting of outsized and heavy cargoes 
were reluctant to disclose information and data on their operation. 
This reluctance was in most cases apparently due to the fact that 
these operators had made long terra commitments and investments in 
equipment, which could encounter increased competition or even 
become obsolete if the HLA should be introduced. The list of 
potential applications is presented as Table 3-13. In addition to 
the applications shown in Table 3-13, the following applications 
and markets were considered: 

. New heavy machinery 

. Vessels and barges 

. Aerospace 

. Large iron and steel assemblies 

Railroad locomotives and cars. 

For all these market sectors and applications it was considered 
that the majority of heavy lift and transportation services could 
be handled with existing technology with minimal restrictions and 
at costs below those of the HLA. The few special applications in 
these sectors where the HLA would be competitive are covered as a 
part of the "Heavy and Outsize Cargo Transportation" application. 

The competitive situation of the HLA in these various markets 
will vary depending upon the transportation infrastructure available 
and the ability of existing modes of transportation. In order to 
select the areas of application where the HLA appeared to be able 
to compete or even have a competitive advantage, and to screen out 
the areas where it could not be competitive, all applications were 
arranged in a matrix with the transportation infrastructure and 
cargo dimensions. In this way, the market for each application 
could be segmented into subsegments based on the transportation 
infrastructure and the cargo dimensions and weight. 

The transportation infrastructure was divided as indicated in 
Section 1 of this chapter: 


3-28 



TABLE 3-13. Potential Civil Markets for Heavy - Lift Airships 




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3-29 


Up to 50 Tons, 45 feet long, 10 feet wide, 10 feet high 

Up to 100 Tons, 80 feet long, 14 feet wide, 12 feet high 

Up to 200 Tons, 100 feet long, 15 feet wide, 15 feet high 

Over 200 Tons, over 100 feet long, over 15 feet wide, over 15 feet high. 




. Urban 

Developed 
. Undeveloped 

. Remote . 

The cargo dimensions and weight criteria were divided with 
respect to the normal limitations that exist for the various modes 
of transportation. These are: 

Components up to 50 Tons, up to 45 Feet Long, up to 
10 Feet Wide and up to 10 Feet High 

These components can be transported by all modes of 
transportation including truck with conventional equipment and 
without securing special permits from the highway regulatory 
authorities on encountering clearance problems on the rail- 
roads, cranes, derricks, and other lifting and hoisting equip- 
ment is normally readily available to lift components within 
these weight limits. 

Components up to 100 Tons, up to 80 Feet Long, 14 Feet 
Wide, 12 Feet High 

These components can normally be transported on a major 
portion of the U.S. rail network and encounter no major clear- 
ance problems on foreign railroads. Special permits are 
required for transportation over the highways, and specialized 
trailers are required for transportation to distribute the 
load. Equipment for lifting and rigging components of these 
dimensions is available from most rigging and crane operators. 

Components up to 200 Tons, up to 100 Feet Long, up to 
15 Feet Wide, up to 15 Feet High 

These components require transportation on heavy lift 
railroad cars. Special permits for over-the-road transpor- 
tation are required, and physical obstacles like bridges, 
narrow turns, poor roads, etc., may require major re-routings. 
Equipment for rigging and lifting components of these dimen- 
sions and weights is generally possessed only by the major 
rigging and crane operators. 

Components Over 200 Tons, Over 100 Feet Long, Over 
15 Feet Wide and Over 15 Feet High 

These components require special heavy lift freight cars 
and frequently special train service is required. Clearance 
problems in many cases require long rail route deviations, and 
at times preclude the components being transported by rail. 


3-30 



Highly specialized equipment and the expertise of experienced 
haulers are required for over-the-road transportation. At 
times, bridges, narrow or weak roads have to be improved or 
new ones constructed at great cost to the project. Careful 
planning and preparation are required by the hauler. Highly 
specialized crane and rigging equipment and expertise pos- 
sessed by the major riggers are required to perform rigging 
on components of these dimensions. 

Each of these market subsegments was then ranked on a qualit- 
ative basis as to the ability of the HLA to compete with the exist- 
ing modes of transportation. The qualitative ranks assigned were: 

L - The HLA is not competitive with or is at a competitive 
disadvantage to existing modes of transportation or 
lifting . 

M - The HLA may be competitive in special situations with 
existing modes of transportation and lifting, but in 
general it will not be. 

H - The HLA is competitive with existing modes of trans- 
portation and lifting. In some cases the HLA may have a 
competitive advantage. 

Based on the HLA applications matrix and the qualitative 
evaluation of the competitive opportunities for the HLA shown in 
Table 3-13, case studies were selected by which to evaluate the 
economic feasibility of using the HLA. 


3-31 


0RIG5NAL PAGE 5S 
OF POOR QUALITY 




OPERATIONAL AND COST STUDIES FOR THE HLA 




4. 


OPERATIONAL AND COST STUDIES FOR THE HLA 


Page 

Number 


4.1 Operational Studies of the HLA 4-1 

4.1.1 The Purpose of the Operational Studies 4-1 

4.1.2 Ground Rules and Assumptions 4-1 

4.1.3 Operational Studies 4-2 

4.2 Cost Studies of the HLA 4-13 

4.2.1 The Purpose of the Cost Studies 4-13 

4.2.2 Ground Rules and Assumptions 4-13 

4.2.3 The Cost Study Methodology 4-14 

4.2.4 HLA Job Cost Sensitivities 4-35 




LIST OF 


FIGURES 


Page 

Number 


4-1 

Equilibrium Forces at Maximum and Minimum 
Weight vs. Rotor/Envelope Lift Proportions 

4-9 

4-2 

Main Multimode Cost Elements 

4-15 

4-3 

Cost Analysis-Calculation of Required 
Freight Rate 

4-18 

4-4 

The HLA Job Cost Model 

4-29 


LIST OF TABLES 


4-1 

Operators Charge Elements 

4-20 

4-2 

AFC Elements 

4-21 

4-3 

POC Elements 

4-22 

4-4 

Typical Support Cost Categories for an 
Austere HLA Facility 

4-23 

4-5 

The Fundamental Cost Analysis Inputs 

4-25 

4-6 

Average HLA Cost Sensitivity 

4-36 


»• 




4 . 


OPERATIONAL AND COST STUDIES 
FOR THE HLA 


In order to ensure that the market analysis properly reflects 
the peculiar qualities of HLAs when compared to other forms of 
transportation, studies were undertaken to define the operational 
and cost characteristics of HLAs that could seriously influence 
the results of the market analysis. This chapter describes the 
purpose, ground rules, assumptions, nature and results of these 
analyses. Supporting detailed cost information is provided in 
Appendix B, which is bound separately as it contains proprietary 
material which is not available for general distribution. A copy 
is retained in the technical monitor's office (NASA, Ames). 


4.1 Operational Studies of the HLA 

This section describes the purpose of examining HLA opera- 
tions in this study, the ground rules used and assumptions made 
in the analyses, the analyses performed, and the results obtained. 

4.1.1 The Purpose of the Operational Studies 

The overall purpose is to define the influence of the opera- 
tional characteristics of HLAs in general on the acceptability of 
the HLA in civil markets in the United States and abroad. In 
particular, definition is sought of those characteristics and 
operational features that: 

. Must be provided or deleted, to satisfy a major 
customer ' s requirements 

. Will significantly influence the total cost of using 
an HLA to satisfy the customer's requirements. 

It is not part of the purpose of this section to attempt an 
overview of the state-of-the-art in airship design and operations, 
except where other studies have indicated that improvements in 
technology over the past 30 to 40 years appear to offer signifi- 
cantly improved capabilities, compared to the previous generation 
of airships. 

4.1.2 Ground Rules and Assumptions 

Since HLAs are at present relatively undeveloped vehicle 
concepts, and since this study is required to be as concept- 
independent as possible, the primary configuration variables for 
consideration in this analysis are: 


. Vehicle size, as measured by the useful load carried 
(fuel plus commercial payload) 

. Vehicle lift mechanism, as measured by the lift that is 
non-buoyant, as a proportion of the useful load. 

All other operational features are developed through liter- 
ature review, development of a typical, or generic, operational 
sequence, and development of services required to support these 
operations. These analyses are defined for a baseline configura- 
tion, and the effect of variations from this baseline are defined. 
The baseline configuration was defined as the bouyant quadrotor 
configuration (Figure 2-1) with: 

Non-buoyant lift = useful load, and 
buoyant lift = empty weight. 

Additional operational ground rules defined for the study are 
that only open mooring need be considered, as opposed to the 
provision of shelters or hangars, and the effects of adverse 
weather will be considered. 

4.1.3 Operational Studies 

The elements of HLA operations are closely tied to the 
elements of HLA costs, which in turn are of primary significance 
in determining the viability and competitiveness of the HLA in 
any potential application and market. In this section, those 
operational elements that significantly affect cost are examined 
with respect to customer requirements; the remainder are reviewed 
briefly and examined in depth only in so far as customer needs 
demand. The operational elements are identified by hypothesizing 
the stages of a typical flight as follows: 

4.1. 3.1 A Typical HLA Operation . The following material details 
a complete HLA flight operation, identifying as many aspects of 
the operation as possible, to extract from the operation those 
features that are critical to customer satisfaction and cost. In 
general terms, these features fall into the following areas: 

Proper cargo delivery 

Operational safety 

Support facilities, equipment services to maintain a 
viable operation that meets customer requirements. 

A typical sequence of events during HLA operations follows: 


4-2 



. Check maintenance operations. 

. Check functional safety of all subsystems. 

. Replace consumables; helium check (pressure/quantity), 
gasoline, oil, air, fire extinguishers; check C.G. of 
HLA w/o cargo, also gross weight. 

. Align vehicle into wind. 

. Verify flight plan and operational requirements. 

. Attach cargo - position cargo appropriately under/by 
HLA and hook up as required, (do not lift) . 

Verify weather suitability. 

. Obtain clearance for take off. 

. Verify all clear, release from ground/ tower mooring 

point, bring up rotor pitch to raise HLA. Pick up 
cargo if at the point of beginning of operation. 

. Climb away. 

. Turn on course, climb to cruise altitude. 

. Monitor ground contact points, to gather data on local 
turbulence and visibility. 

. Establish radio communications with on-site personnel 

when approaching destination. 

. If mooring required, and no mast is at site, hover, and 
lower expeditionary mast and engineer, to set up mast. 
Loiter, until mast ready, then approach and moor, using 
contractor on-site personnel* to handle lines from the 
HLA to assist in ground maneuvering, and to secure. 

. If "precision" placement is required rather than mooring, 
then approach, lower ground lines (preplanned maneuver), 
and hover over placement "spot" using precision hover 
to control vehicle. Contractor on-site personnel will 
hook up lines to winches or other ground restraint and 
control devices. 


"Contractor on-site personnel" here refers to customer crew already at 
the site that would normally accomplish rigging tasks for a conventional 
heavy lift operation using a crane. These are not HLA crew especially 
shipped to the site to handle the HLA during mooring. 


4-3 


ORJGsjWAL page is. 

OF POOR Q'JALITY 



Lower cargo using winch mechanism, and precision hover 
to hold station, while on-site personnel (e.g., "riggers", 
if handling large plant components) provides precise 
lateral control of cargo. Continuous communication for 
all participants, under control of ground foreman (as in 
normal crane and rigging operations) . 

When positioned, release cables and other connections, 
raise to HLA, climb clear of obstructions, loiter while 
flight plans and instructions are exchanged, proceed to 
either base. 

Two types of bases are envisaged — a temporary or "field" 
base located in the general vicinity of the destination 
(e.g., at the destination or within easy reach of all 
multiple destinations) at which routine maintenance can 
be performed and the main base for HLA operations, 
encompassing all facilities for flight and ground opera- 
tions and support activities. 

At field base - Use expeditionary mooring point and 
ground crew/engineer to position/locate HLA nose/belly 
and mooring point. If necessary to prevent possible 
danger to ground personnel, cut rotors and approach 
expeditionary field mooring point on auxiliary power. 

Operation from field base, lifting at staging point, 
positioning on-site - At start of day, repeat preflight 
chec)c, warm up engines, verify day's schedule with 
ground activity foreman. Refuel, check clearance for 
take off, release from mooring mast, engage rotors and 
lift off to pick-up at staging point. Hover over staging 
point, lower cables with static discharger. Contractor 
on-site personnel connect cables to payload. Release 
restraints when vertical lift by HLA is assured thus 
eliminating load swing dangers. Climb out vertically, 
rotate on course then gently accelerate on desired 
course to cruise speed. On arrival at site follow 
procedure previously described. 

Returning to main base - Sequence similar to departure 
from mam base, except that flight clearance to main 
base must be obtained via radio. 

Arrive at main base - Approach into prevailing wind, 
line up on mooring point, engage mooring point. Cut 
engines, post-flight check by crew. 


4-4 


I 



4. 1.3. 2 Significant Operational Elements . From the preceding 
development of an HLA operation, the following emerge as being of 
principal concern. 

For proper cargo delivery: 

Enroute flight speeds to satisfy delivery schedules 

. Cargo handling on the ground 

. Equipment to contain the cargo while attached to the 
HLA 

Cargo attachment to the HLA, with quick release capabil- 
ity in an emergency 

Techniques for adding ballast if necessary in specific 
situations 

Controllability sufficient to minimize cargo disturbance 
during the take off 

. Cargo protection against weather conditions enroute — 
rain, hail, snow, sun, freezing temperatures, icing. 

This may be the responsibility of the customer; however, 
if the design provides such production at a reasonable 
cost, it may be more competitive. 

. Ability to carry sufficient cargo to minimize time and 
cost to the customer 

. If moored at the delivery point, techniques to restrain 
HLA movement while unloading the cargo 

If not moored, but hovering, sufficient controllability 
to prevent undesired cargo displacement while unloading 

. Use of ground crew and HLA-mounted restraint cables and 
winches may be required. 

For operational safety: 

Thorough inspection of all flight components, particu- 
larly the lift, control, and cargo attach systems 

. Proper flight planning to take account of local terrain 
and weather conditions 

. In unprepared terrain, ensure personnel on the ground 

are protected from dust and dirt transported by rotor/fan 
down wash during take off and landing. This is not 
usually a problem with helicopters, and is less so with 
HLA, due to relatively low disc loadings. 


4-5 



. Minimize pitch and roll motions during landing and take 
off to reduce risks of rotor striking ground 

Depending on the cargo, the flight plan may have to 
consider avoiding populated areas, and should identify 
emergency landing sites in the event of power or buoy- 
ancy failure. Note that this consideration is strongly 
affected by the number of engines used to power the 
rotors, and the extent of cross-coupling between power 
units and rotors. This must be designed so that at all 
times the power is shared evenly among all rotors, even 
in the event of multiple engine failure. 

. When mooring or precision hovering, use contractor 

personnel on the ground, where possible and available, 
to aid in ground positioning and obstacle avoidance 

. In the event of an emergency landing, the normal flight 
cover (e.g., pilot, co-pilot, engineer, heavy lift 
operator) should attempt repars for which they have 
been trained and are equipped. More extensive repairs 
would await arrival of a field repair cover from the 
nearest HLA base; possibly ferried by a replacement 
HLA. 

. One crew member remains on duty with HLA at all times 
while away from base 

. Built-in maintenance diagnostic techniques may be 

useful to minimize parts inventory and provide long 
lead time on potential failures, if available and cost- 
effective 

. Static discharge prior to ground crew/flight crew 
making contact. 

For support of HLA system operations: 

. At least a "minimum" main base with, the following 

Fuel, oil and helium storage, and transfer equip- 
ment 

An enclosed facility for power lift/propulsion 
system maintenance 

A capability for envelope and structure inspection 
and repair, and continued maintenance 

A general maintenance facility for electromechan- 
ical pneumatic, hydraulic and other system or 
component maintenance 


4-6 


I 



- An operating field with a mooring system, and 
sufficient clearance to approach the mooring point 
from any direction 

A concrete pad surrounding the mooring point to 
carry repeated HLA wheel loads, and for loading 
and unloading cargo 

Ground support equipment and vehicles, for use in 
maintenance of the envelope and structure and for 
maneuvering the HLA, its cargo and other equipments 
around the base 

- A facility for maintenance of the ground equipment 

A facility for housing the flight and ground 
crews, and administrative staff and their equipment 

- Flight operations equipment, communications metero- 
logical equipment, emergency equipment. 

Much of this could be colocated and shared with conventional 
aircraft facilities on an airfield. 

For operations away from base the following are necessary: 

. An expeditionary mooring mast, carried on board the HLA 

. Spares for simple repairs to be carried out by the 
flight crew 

. Tie-down equipment for use in bad weather 

Extra fuel tanks in lieu of cargo for ferry flights. 

4. 1.3. 3 Relative Cost Significance of Support Items . A review 
of the costs involved in providing such a minimum base facility 
and field equipment {detailed in the Cost Analysis Section) shows 
that these costs, which could be vital to practicality of opera- 
tions, are small compared to the vehicle operating and financing 
costs. The cost of such facilities (not including the cost of 
the HLA maintenance performed in these facilities) , when amortized 
over the anticipated life of an HLA, for reasonable annual utiliza- 
tion, does not exceed 5 to 6 percent of the total cost per HLA of an 
HLA operation. Even if more bases are added, or a larger base is 
developed to house more or larger HLAs, this percentage does not 
change significantly. Consequently, no serious study has been 
attempted of alternative basing configurations or fleet management 
considerations. Rather, the remainder of this chapter is confined 
to study of HLA flight operations and cargo handling, and the 
effect on these of variations from the baseline configuration. 


4-7 



4. 1.3. 4 Operational Considerations . The typical customer for 
HLA services will be primarily interested in moving his cargo a 
relatively short distance, compared to normal transportation 
distances, and having it deposited to his specifications as to 
location, precision, and ground-impact speed (descent rate on 
touch down). He will be concerned that the cargo not be damaged, 
and will require that the HLA be sufficiently controllable to 
ensure cargo safety. He will be more interested in the HLA if it 
can perform his required task with much savings in time, cost, 
capital equipment and/or manpower, as has been demonstrated in 
some specific instances by helicopters. Therefore, operational 
features and capabilities that ensure cargo delivery in undamaged 
condition in the location required are of primary interest. The 
following discussion assumes the buoyant quad-rotor configuration. 

Vehicle Size . Since the customer will be unwilling to pay 
for capacity much beyond his needs, his interest will tend 
towards a vehicle size for which his lifting needs represent 
those of the design payload. Any increase in size would 
have to be justified by, for example, increased controllability 
in hover due to increased power levels, or by reduced charges 
for the services provided (a possible result if the larger 
size has a bigger market and as a consequence is built in 
larger quantities, or being much more heavily utilized, or 
has less ferry cost to amortize) . 

Open Field Mooring . If the loading and unloading of cargo 
can be accomplished in the hover condition, mooring at the 
field location may only be required when the HLA is not 
performing its assigned task. However, there may be situa- 
tions in the field when such may not be feasible. In that 
case, the mooring technique must be compatible with the 
capabilities of the on-board crew, and the HLA controllability. 
It is anticipated that powered lift and control system 
development will make it quite feasible for the HLA to be 
fully controlled from on board. The mooring mast may need 
to be telescopic to permit varying the loading height under 
the HLA to accommodate the cargo and its transport during 
positioning and cargo hook up. 

Cargo Handling and Hover Controllability . The most critical 
operational steps occur at each end of the flight as the 
cargo is transferred between the HLA and the ground, since 
major changes in vehicle weight and the corresponding lift 
forces take place. Figure 4-1 illustrates this concept. 

Ways must be developed for ensuring that this transition 
does not bring about a major perturbation of the HLA and can 
be safely accomplished in windy weather. For the nominal 
concept, the two operational conditions between which the 
transition occurs are; 


4-8 



MAX. WEIGHT 



LIFT FROFORTIONS 


USEFUL LOAD 
♦ 

EMPTY WEIGHT 


ROTOR mi 

ENVELOPE mi 



LIFT FROPORTIONS 


FIGURE 4-1. Equilibrium Forces at Maximum and Minimum Weight vs Rotor/Envelope 
Lift Proportions 


4-9 


ORSGiS^AL PAGE IS 
OF POOR QUALITY 







(a) Vehicle at close to maximum gross weight, (the 
useful load being supported by the powered lift 
system) 

(b) Vehicle at close to empty weight, (being supported 
almost entirely by the buoyant envelope) . 

In going from (a) to (b) , the vehicle is first lowered, 
under full control with its heavily loaded rotor system, 
until the cargo is properly positioned. At this point the 
cargo is ready for release. If the cargo were released 
suddenly, the vehicle would immediately jump. To avoid this 
behavior, before cargo release, the rotor lift of two 
diagonally opposed rotors is slowly reduced and then re- 
versed to ensure that transfer of the load from the vehicle 
to ground is gradual until the HLA is no longer supporting 
the cargo, while maintaining vertical and lateral controlla- 
bility. At this point, the cargo can be disconnected. The 
HLA is now in condition (b) , hovering with no net rotor 
contribution to lift. In this condition, controllability 
requires that the rotors be capable of developing vertical 
and side thrust while the net vertical rotor thrust is zero; 
this is accomplished by having each pair of diagonally 
opposed rotors maintain significant but opposed thrust 
levels. Modulation of these thrust levels will provide the 
desired controllability. 

In going from (b) to (a) , the reverse procedure will be fol- 
lowed. Thus the HLA will be fully controllable at all 
times . 

In the development cycle envisaged for the nominal concept 
HLA, the first stage would consider using conventional 
helicopter rotor systems from which only one-way vertical 
thrust is normally available. As indicated in Figure 4-1, 
this is entirely feasible for rotor-lift-to-envelope-lift 
proportions above about 55 percent. These rotors would be 
generally operating under more lightly loaded conditions 
than for helicopter operations, with consequently reduced 
maintenance requirements. Development of reversible-thrust 
rotors could be considered for a second stage of HLA RDT&E. 

The cost impacts of these operational considerations are 
similar for all potential HLA configurations and are as 
follows : 


RDT&E costs would arise principally from development 
of a control system and a rotor system optimized for 
HLA use. Interim operations are entirely feasible 
with existing rotor systems (with probable use of 


4-10 


I 



ballast)* coupled by a fly-by-wire technology, 
which must be developed in a prototype. Other 
development costs result from the use of new 
materials and design techniques in what is an 
otherwise well-established design process for 
airship hulls. 

. Investment costs are most strongly impacted by 

the propulsion/lift and power systems. These are 
costly and sophisticated engineering products, of 
substantially greater power levels than would be 
required for fully buoyant systems. Note that 
costs lower than for conventional helicopter rotor 
systems can be anticipated*. 

. O&M costs are again most strongly impacted by the 
propulsion/lift and power system maintenance 
requirements and fuel costs, which are substantial- 
ly greater than for fully buoyant systems. Note 
that costs lower than for current conventional 
helicopter systems can be anticipated*. 

Note also that design for the engine-out case will 
affect costs through the engine configuration; the 
question of cross-shafting vs. multiple engines 
must be examined with respect to flight safety. 

The resultant reliability requirements will in- 
fluence the maintenance cycle, labor, material, 
and costs. 

Altitude Effects ; Some potential applications may require 
operation between two locations within relatively few miles 
of each other, but with a considerable altitude difference 
between them. If the task is to carry payload from the 
higher to the lower elevation, less operational difficulty 
is anticipated since the real demands on power will be to 
provide a VTOL capability at the start, and a hover cap- 
ability at destination. The journey from the higher eleva- 
tion to the lower with payload would be greatly assisted by 
gravity, while the reverse journey without payload would be 
assisted by buoyancy. On the other hand, if heavy loads 
have to be lifted from a lower to a significantly higher 
elevation, significant rotor power will be required through- 
out the delivery flight, and also on the return flight 
unless ballast is employed. Note that the rotor, power 
plant and envelope must be sized to satisfy the maximum lift 
at the higher elevation, in either case. 


Developments under way on helicopter rotor system maintenance as part of 
HLH and other programs will result in significant reduction in HLA 
maintenance costs (approximately a 65% reduction) . Rotor design require- 
ments for HLA permit a simpler symmetrical rotor section without twist; 
less efficient, but cheaper and lighter, with better fatigue properties 
and simpler maintenance. 


4-11 



It is conunon non-rigid LTA practice to employ ballonets that 
can be inflated with air to reduce the helium volume and 
thus control the lifting capacity of the envelope. Ballonet 
capacity and the percentage of helium inflation at ground 
level determine the maximum altitude achievable by the 
airship. In non-rigid airships, this is called "pressure 
height" and cannot be exceeded without loss of lifting gas. 

In general, as the required operating altitude for a given 
payload is increased, the envelope and ballonet size increases. 
The installed power must also increase, since the baseline 
configuration depends on rotor power to support the payload, 
and both rotor lift and engine power drop off with increases 
in altitude. Consequently, extended operation at higher 
altitudes would require a larger vehicle than would be 
dictated by just the increase in envelope size to accommodate 
a greater ballonet. In-flight controllability at higher 
altitudes may become more difficult, since the aerodynamic 
control and damping forces reduce due to the lower density 
while the vehicle inertia is either unchanged or increased 
if a larger vehicle is used. However, in hover, controlla- 
bility should be unaffected, since the rotor forces are 
sized to satisfy the lift at altitude. 

Consequently, operation at high altitudes or between signif- 
icant altitude differentials are bound to be more costly to 
the user, either because a larger number of round trips are 
required to meet his requirements with a machine not de- 
signed to reach the maximum altitude with full payload, or 
because an appropriately sized machine will have greater 
investment and development costs, as well as greater fuel 
cost. 


4 . 1 . 3 . 5 The Effect of Variations of the Proportions of Rotor and 
Buoyant Lift . A principal parameter of the HLA configuration is 
the distribution of total lift between envelope and rotors. An 


increase in the proportion of rotor lift would tend to increase 


costs and complexity and reduce the inherent advantages that the 
baseline configuration has in competition with the helicopter but 
possible controllability and operational flexibility. A decrease 
in the proportion of rotor lift has the opposite tendencies and 
is perhaps more worth examining. 


A reduction in rotor lift means a larger envelope and bal- 
lonet and consequently an increase in aerodynamics drag, and 
responsiveness to gusts. At the same time, although envelope 
costs will increase, overall acquisition costs will not since 
rotor power and size are reduced and rotor costs are greater than 
envelope costs. 




4-12 



At the cargo transfer points, a reduction in rotor lift and 
an increase in envelope lift can have a significant effect. With 
the vehicle at close to maximuin gross weight, a reduction in 
rotor lift and an increase in envelope lift has the effect of 
reducing the rotor force available for controllability. However, 
with the vehicle at close to empty weight, any increase in the 
proportion of envelope lift must be counteracted by rotor lift, 
since in the baseline configuration, the empty weight is balanced 
by the envelope lift. Consequently, the rotor must be capable of 
providing both positive and negative lift in steady state conditions. 
The proportion of positive and negative lift depends on the 
combination of steady state balance forces, which vary with the 
proportion of rotor lift assumed. Also the additional controlla- 
bility forces required increase with vehicle size and inertia. 

This variation was summarized in Figure 4-1, which shows the 
lift and control forces required in the heavy and light conditions, 
as a function of the proportion of rotor and buoyancy lift. 


4.2 Cost Studies of the HLA 

This section describes the purpose of examining HLA costs 
in this study, the ground rules and assumptions made for the 
analyses, the analyses that were performed, and the results that 
were obtained. 

4.2.1 The Purpose of the Cost Studies 

The main purpose of these cost studies is to develop a tech- 
nique for calculating realistic charges to a potential customer 
for the use of HLAs, such that these charges would be directly 
comparable to those for any other competing mode of transporta- 
tion, so that they can be used in estimating the market potential 
for the HLA. This technique must at the same time be capable of 
use in investigating the sensitivity of such charges to variations 
in the market environment, as defined by the customers require- 
ments, and to uncertainties in estimating the acquisition, opera- 
tion, and maintenance costs of HLAs. 

4.2.2 Ground Rules and Assumptions 

In addition to the basic study ground rules and assumptions 
defined earlier, the following were adopted for the cost analysis: 

. No independent cost estimating would be done except as 
required to extend the data provided, so as to cover a 
complete range of vehicle sizes. 


4-13 



. Basic cost data would be provided by potential HLA manu- 
facturers to represent their best realistic estimates of 
practical designs. 

. No critical analysis would be made of the data provided, 
other than to assess its reasonableness by comparison in 
a general manner with previous HLA assessments and other 
system costs. 

. The manufacturer's cost elements would be varied to 

represent the effect of uncertainty in their estimates. 

Proprietary data would be made available only to NASA. 

Engineering principles and common sense would be satis- 
factory as a basis for extrapolating data to sizes for 
which data were not provided. 

. Present-day cost estimates are representative of future 
costs when escalated by an appropriate index. 

Note that because of these assumptions, and the varying degree of 
optimism from one manufacturer to another, the various cost esti- 
mates cannot be used to judge the relative worth of the vehicle 
concepts . 

4.2.3 The Cost Study Methodology 

The total cost to a customer for transportation of his cargo 
from his desired origin to desired destination is made up of the 
separate costs of individual modes (e.g. barge, truck, rail) plus 
the cost of loading and unloading between modes and at the origin 
and destination, as illustrated in Figure 4-2. Multiple modes are 
required when no single mode is available from origin to destina- 
tion and invariably such journeys involve circuitous routes in 
plan and elevation, with corresponding penalties in transit time. 

Any single transportation process or mode that can replace one or 
more modes and the associated transfers, and at the same time 
reduce the overall transit time, is a candidate for modal competi- 
tion. The system basic operating cost per unit time or distance 
may be higher than the competing modes, if the overall cost to the 
customer is reduced. In fact, under some circumstances the actual 
total transit cost using the new candidate can be higher than for 
the competing modes, if the savings in time by the new candidate 
affords the customer significant savings elsewhere in his operation. 

Examples of how such savings arise, drawn from the cases in 
this study, are as follows; 


4-14 



TOTAL COST 



0 


.::RyGs^:AL PAGE II 
OF POOR QUALITY 


FIGURE 4-2. Main Multimode Cost Elements 












. A project that can be completed quicker, through use of 
HLAs, can have reduced finance charges. 

If the project capital equipment requirements are reduced 
as a result of the use of HLAs, the finance charges are 
reduced . 

. Consolidation of effort can result from the use of HLAs, 
resulting in more efficient use of manpower and increased 
productivity, and a very real savings in labor costs on 
the project. 

. A further savings, less tangible but very significant in 
a competitive market, can result. The lower cost, 
shorter project time, and generally more efficient 
operation may provide the customer with the ability to 
offer more attractive project proposals than his competi- 
tion, thus increasing his annual income and profits and 
attracting investment capital to his operation. 

4 -2. 3.1 The Cost Analysis Framework . In the modes with which the 
HLA would be most likely to compete (truck, barge, rail, helicopter 
and the riggers who effect the interroode transfers and final 
assembly) the practice is to charge a negotiated fee that is 
assessed through careful review of the elements of the task to be 
performed. Consequently in this analysis, it is necessary to 
determine the cost of using the HLA to perform specific well- 
defined tasks. 

In transportation, the basic elements involved are always the 
same, regardless of the cost methodology employed. These basic 
elements are: 

The cost of purchasing one or more vehicles 

. The cost of purchasing the supporting equipment and 
facilities for the vehicles, their maintenance and 
operation 

The cost of operating the vehicles in performing any 
given project 

The cost of maintaining the vehicles and their sub- 
systems 

. The cost of managing the system. 


4-16 



All of these costs must be reflected in the charge to the customer. 
These broad categories, discussed in more detail in the next section, 
in general depend on several factors; the number of airships pur- 
chased, the extent of government participation in development, the 
financing alternatives and rates, the hours per year that each HLA 
is utilized, the proportion of the time that is spent in different 
modes of flight (ferry, cruise, hover), and the load that is being 
carried. All these relate together as shown in Figure 4-3, which 
illustrates the framework of the analysis procedure used for deter- 
mining the operator's charge to the customer (equivalent to the 
negotiated tariffs charged by conventional modes) . 

This framework is divided into two main cost elements: those 
costs that are accrued annually and are unaffected by the nature of 
the work to be performed for a customer, i.e. the Annual Fixed 
Costs (AFC), and those costs that are incurred in meeting the 
customers requirements, referred to as the Project Operation Costs 
(POC) . The total that the operator must charge the customer is 
then the sum of the POC, the proportion of the AFC that can be 
allocated to that project, and the operator's profit. In order to 
arrive at an equitable proportion of AFC, the operator estimates an 
annual utilization for his HLAs, and allocates to the customer his 
share of the AFC based on the proportion of the annual utilization 
consumed on his project. 

The AFC consist of all costs to the operator incurred through 
acquisition of the system, equipment, and facilities, all operating 
costs that accrue annually, or independently of any project, and 
all administrative and marketing costs incurred to maintain a 
viable competitive business. These costs therefore include any 
interest and capital payments incurred through financial arrange- 
ments made for the initial or on-going acquisition of the system 
equipment. 

The POC consist of all costs incurred in order to accomplish a 
specific project, and encompasses all costs related to HLA flying 
hours. These include flight and ground crew, maintenance materials 
and crew fuel and oil, and labor burden on flight and ground crews. 

In special situations, the cost of obtaining and using, through 
lease or purchase, any special equipment necessary for the project 
but not already in the operator's inventory must also be included. 

4.2. 3. 2 The Cost Analysis Elements . Each of the elements that 
compose the total required freight rate are described and discussed 
in this section. The quantitative forms of the elements are not 
provided since they are specific to particular concepts and are 
based on proprietary data. They are contained in Appendix B, bound 
in a separate volume and held in the Technical Monitor's office in 
NASA, Ames. 


4-17 




FIGURE 4-3. Cost Analysis— Calculation of Required Freight Rate 















Before describing the individual elements, the process by 
which they are combined into a required freight rate is described 
algebraically, following the framework in Figure 4-3, and developed 
in Tables 4-1, 4-2 and 4-3, which should be used as reference in 
the subsequent discussion. 

In Table 4-1, the major elements are defined on a per vehicle 
basis and related to permit the more detailed descriptions shown in 
Tables 4-2 and 4-3; these are discussed further below. 

Annual Charge for Recovery of HLA Capital Costs . This charge 
is the means by which the operator either repays capital 
loaned to permit him to purchase the air vehicles and spares 
required, or leases the equipment from an original purchaser, 
or sets aside money to replace the capital he invested himself 
to purchase the vehicles. Rather than attempt to represent 
such schemes, it was decided that a single, typical capital 
recovery factor should be applied to the capital value of the 
equipment. This factor would then be subject to sensitivity 
analysis. A typical range of values is 10 to 20%, with a 
suitable datum value of 15%. 

The capital value of the equipment is composed of the 
cost to complete a production run, plus the cost of spares for 
refurbishable major components such as engines, plus the cost 
of development and certification. The sum of these factors 
divided by the total number of vehicles produced yields the 
capital value of the equipment per vehicle. An exception to 
this formulation would arise if the Government absorbed the 
cost of development and certification; this could have a 
significant effect for small production runs. 

Annual Charge for Helium Replenishment per Vehicle . Leakage 
of helium is an established part of LTA operation. Ongoing 
developments may reduce it substantially; however, an allow- 
ance is appropriate at present, and is directly related to 
vehicle envelope size. 

Annual Insurance Charges . Insurance of flight vehicles against 
loss has a well-established precedent for aircraft and heli- 
copters, but not for airships. Consequently this cost is 
somewhat uncertain. The annual percentage would appear likely 
to fall between those for aircraft and helicopters, as a 
compromise between the apparently greater safety of buoyant 
lift devices, and the current lack of actuarial experience 
with them. A likely range is from 2% to 6% of the capital 
cost per year, with 4% as a reasonable baseline. 


4-19 



TABLE 4-1. Operators Charge Elements 


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4-20 


I 



Costs/Vehicle IHLAC)) (Annual Capital Recovery Factor (CRF)) 



4-21 


:;?!GiSNSAL PAGE 5S 
OF POOR QUALfTY 


(where the facilities and operations are all of those required to support the HLA fleet; other than 
fuel, oil, flight and ground crew, HLA maintenance) 


TABLE 4-3. POC Elements 


CREW 

MAINT 

BURD 

FUEL 


CREW 

MAINT 

BURD 

FUEL 


(Flight crew cost per flight hour (FC)) (Project flight hours (H)) 

(Maintenance Labor and Materials cost per flight hour (MLM)) (H) 

(Flight Crew (FC) and Maintenance Labor (ML) costs per flight hour (FCML)) 

X (Direct Labor Burden factor (DLBF) x (H) 

]^j^(Fuel and oil cost per hour of flight in mode k) (Hours of flight in mode k) 

(Ferry fuel and oil cost per ferry hour (FF)) (Ferry hours |FH)) 

+ 

(Hover fuel and oil cost per hover hour (HF)) (Hover hours (HH)) 

■f 

(Cruise fuel and oil cost per cruise hour (CF)) (Cruise Hours (CH)| 


Annual Charge for Amortization and Oper ation of Administration 
and Operational Support Facilities, per Vehicle . The adminis- 
tration and operational support facilities encompass everything 
involved in the operator's business that has not previously 
been covered, and that is not accountable for on a "per project 
hour" basis. The charges fall into two categories: those 
required to amortize the capital costs of facilities and 
equipment, and those required to operate and maintain the 
facilities and equipment. Since this amortization is likely 
to be arranged separately for each building, item of equip- 
ment, and other required facilities, as appropriate to the 
lifetime of each, an approach similar to that used for the 
vehicle capital recovery cost was adopted, i.e., an annual 
facilities capital recovery charge was used. To this is added 
the annual cost of operation and maintenance, on a per vehicle 
basis. An estimate has been made at a fairly detailed level 
of typical costs to support a single vehicle with either a 
minimum or austere base facility; the cost categories are 
presented in Table 4-4. The estimate has been expanded to 
account for variation in size of the single vehicle. It is a 
reasonable assumption that the cost per vehicle would reduce 
as the number of vehicles increases. However in this study, 
the annual per vehicle cost for these facilities and support 
operations is taken to vary as a function of vehicle size 
only. The estimates show that such costs can represesnt only 
a small proportion of the total operational cost per vehicle, 
on the order of 5—6%. Since future development of facilities 
and operations may require a degree of sophistication not 
considered here, these estimates were subjected to sensitivity 
variations. 

Crew Costs per Vehicle per Flight Hour . These costs are the 
total costs of both flight and ground crews required to sup- 
port each vehicle, the cost per hour being determined by sum 


4-22 



TABLE 4-4, Typical Support Cost Categories for an Austere HLA Facility 


SUPFOBT ITEMS 

SUPPORT ITEMS 

• BuHJitig Costs fHuluf AtImiriHWalioii, 

• Mairiteiiancu ol Simp Ec^ipmunt 

Opui aiioits, SkNajel 


• nuilduiy MiHMleiiance 

• Crews Lounge 


« Mast Circle* * 

• GrOkinJ Support Fouipmetit ' * 



• Operating Equiptneiti 

Lilt UncK 


- ScaHoIJiii^ 

- Bose Support Equipment 

- Woik iilail&ms 


Chciry (Xcker 

Radios 

- LtodOtrrs 

Meteiolofical 

Genvial Purpose Motll 



- Base Main tenanoe Equipment 

• UrourxJ support Et^utptmint Mantiertaiice ' * 


• Gioutid HaiKjlih^ and Mouriny Equipment ‘ * 

Radius 

Meieroiogical 

■ Mast 

- Base Maintenance Equipment 

- Pluoti Li^li 

- Rdllast Sags 

Mowirtg 


Utility TiaBcf 

• Croutul HanOlinu and Moorlny Eqtiipmani Mainieniiica* * 

Hand Tools 


Vacuum, Fluor Saubber 

• Support VafticUts 



• Admmistraiion 

Per lonoel transputt 


- Base SCI vice truck 

- Enrployea ralilions 

- Mamienaitce truck 

~ Employee benefits 

- Euef traniporier 

- Salary 

• Suppoi [ Vaftiiie Maintenanci 

- Insurance 
“ Safely 

• Mainianaiict* Sliop Equipnteni 

- Taxet 

— Record Keeping 

- Mvchatticai 

- Supplies 

— Cuircnl Aeronautical Charts 

Saw 

- FAR Revtsloru 

- Weather Briefing 

Break 

- Flitf it Pterwung 

Lathe 

Drill Press 

, • Fuel and Oil Sinraoe Facifilias** 

Vice 

Engtrsv Muisi 

• Office Equgimeitl 

Work BencJias 


Storage Cahniats 

e Reef Eueie Taxes 

- Electronics 

• MiicetlenaoutMeintenencc 

Test Equipmem 

e UiiNiies 

Hepair Equipment 


Work Bertches [ 

e Mainierseiicc Burden et 80% Meinienarica Dollars 

SiorarfB Catiineli 


* ’ Thrfw ilums «^ary with HLA si/l 


23 








of the appropriate annual salaries, divided by the annual 
vehicle utilization. 


Maintenance Costs per Vehicle per Flight Hour . These consist 
of all airframe, envelope, power plant, propulsion, rotor and 
systems maintenance required (both labor and materials) to 
support each vehicle. This cost is a function of utilization, 
since increased utilization introduces step increases in man- 
power requirements. 

Direct Labor Burden per Vehicle per Flight Hour . The flight 
and ground crew have particular administrative needs (e.g., 
training, insurance, hospitalization, and facilities) that 
require a different burden rate from the administrative staff. 

Fuel and Oil Costs per Vehicle per Flight Hour . These costs 
derive directly from the requirements of the project scenario 
(i.e., the payload carried in each of the ferry, hover, and 
cruise modes, and the flight speeds required). 

Flight Hours per Project . The flight hours in each of the 
three modes, ferry, hover, and cruise, are also determined 
from the detailed examination of the application of the HLA in 
each project. 

To summarize this review of the cost elements. Table 4-5 lists 
the inputs required in order to do the cost analysis and whether 
they are defined parametrically or derived from cost or scenario 
data. The cost data in turn must be derived from detailed studies 
of specific HLA concepts, through parametric analysis of more 
generalized concepts, or by a judicious blending of the two ap- 
proaches. The latter is the approach adopted in this study and it 
is discussed next. 

4. 2. 3. 3 The Cost Estimation Procedure . An estimating procedure 
was developed to define the cost of using an HLA to fulfill the 
needs of any particular job, as defined in detail in the case studies 
in Section 6 . The procedure develops representative HLA costs by 
averaging the costs of two configurations whose optimum performance 
regimes are in different portions of the speed range; a relatively 
high-speed configuration typified by the Goodyear Quadrotor con- 
figuration originated by the Piasecki Helistat, and a relatively 
low-speed configuration typified by the Canadair Aerocrane con- 
figuration, originated by the All-American Corporation. The market 
analyses detailed in Section 6 use two speed conditions, 25 mph and 
60 mph, representing these low-speed and high-speed designs. In 
order to protect the proprietary nature of the data supplied by 
the potential manufacturers, the HLA costs are estimated for both 
concepts at both speeds and then averaged for use in the analyses. 


4-24 


I 



TABLE 4-5. The Fundamental Cost Analysis Inputs 


FOR PAFC 





Utilization per year 

U 

hrs. 

Defined 

P 

Project Flight hours, all modes 

H 

hrs. 

Derived 

S 

Ccst of H LA & Spares, per HLA 

TFAC 

$M 

Derived 

c 

Development cost of HLA, per HLA 

DEV 

$M 

Derived 

c 

Annual Cost to replenish helium per HLA 

HEL 

$M 

Derived 

c 

Annual insurance premium 

IP 

% 

Defined 

p 

Facility buildings costs 

FCC^ 




Ground support equipment costs 

FCCj 




Ground handling & mooring equipment costs 

FCC3 




Support vehicles cost 

FCC4 




Maintenance shop equipment costs 

FCCg 

^$M 

Derived 

C 

Crew lounge costs 

FCCg 




Mooring mast circle costs 

FCCy 




Operating equipment costs 

FCCg 




Maintenance equipment costs 

FCCg 




Capital cost recovery factors 

ACR| 

% 

Defined 

P 

Building maintenance costs 

FOC^ 




Ground support equipment maintenance costs 

FOCj 




Ground handling & mooring equipment 





maintenance costs 

FOC3 

^$M/ 

Derived 

c 

Support vehicle maintenance costs 

FOC4 

year 

j 


Shop equipment maintenance 

FOC5 




Administration 

FOCg 




FOR POC 





Flight crew cost per flight hour 

FC 

$ 

Derived 

c 

Maintenance labor cost per flight hour 

ML 

$ 

Derived 

c 

Maintenance Labor and Materials cost per 





flight hour 

MLM 

$ 

Derived 

c 

Direct Labor Burden Factor 

DLBF 

% 

Derived 

c 

Ferry fuel & oil cost per ferry hour 

FF 

$ 

Derived 

c 

Hover fuel & oil cost per hover hour 

HF 

$ 

Derived 

c 

Cruise fuel & oil cost per cruise hour 

CF 

$ 

Derived 

c 

Ferry flight hours 

FH 

hrs. 

Derived 

s 

Hover flight hours 

HH 

hrs. 

Derived 

s 

Cruise flight hours 

CH 

hrs. 

Derived 

s 

Project flight hours 

H 

hrs. 

Derived 

s 


P — parametrically varied 
C — cost data input 
S - scenario data input 


4-25 



The choice of 25 mph and 60 mph as the representative speeds re- 
sults from estimates of optimum speed with a heavy load suspended 
beneath the vehicle, a typical configuration for practically every 
application. It must be strongly emphasized that these estimates 
are intended to permit reasonable comparisons between the probable 
costs of using an HLA, and the cost of conventional approaches to 
fulfilling a particular heavy-lift need, and cannot be used for 
comparative analysis of potentially competitive HLA concept. 

The steps in the cost estimation procedure are as follows: 

. Development of a generalized cost model, applied to any 
HLA concept, that can develop the total cost to an HLA 
user of fulfilling the need for heavy lift in any applica- 
tion . 

Develop all necessary cost elements for input to the 
model. This step is based on operational, technical and 
cost data and is necessarily limited to the HLA sizes and 
operational conditions provided by the concept designer. 

Where necessary to provide cost data for an adequate 
range of HLA sizes and operating conditions, these cost 
estimates are extrapolated with the aid of estimates of 
power and component weights as a function of size. 

For each HLA application, estimates from the cost model, 
the HLA job costs for each concept, for the sizes and 
operational conditions for the application. 

Average tlie HLA job costs for each concept, to remove 
proprietary limits to the cost data. 

Determine the effect of costs of varying the non-opera- 
tional and operational cost parameters. 

Each manufacturer provided data in a different form and with 
different levels of detail; consequently, the level of analysis 
required was considerably different for each. The goal of these 
analyses was to prepare analytical cost models, all with the same 
basic structure, that would provide operator's costs as defined in 
Section 4. 2. 3. 2, for a range of operational, production, and 
financial inputs. These models were then programmed on the T159 
programmable calculator and printer. The models were used to ob- 
tain the cost sensitivity results presented in this section and the 
cost data for the case studies described in Chapter 6. 


4-26 



The approach used in this work was to first determine the 
desired cost framework and associated elements described earlier 
in this section. For each of the data sets provided, a comparison 
was then made between the data set and the framework/elements to: 

. Identify the correlation between the two 

. Define any additional data needs 

Determine assumptions and factors that should be kept 
the same between the two models (e.g., insurance rates). 

After developing an adequate data base, using this method- 
ology for each element in the framework, this data base was con- 
verted into programmable elements. This usually took the form of 
curve fitting data points, although in some instances, the manufac- 
turer’s relationships were used directly. 

The data defined in Appendix B was used to develop simple 
expressions for each cost model parameter in terms of the perti- 
nent cost drivers: 

. Useful load (L) 

Utilization (U) 

Production quantitv (N) and 
Payload (P) . 

Since the level of detail varied considerably, the resulting 
simplified formulations tended to vary considerably from one con- 
cept to another. The elements of the two sets of formulations 
were then compared and a common general form identified that would 
support each of the derived formulations with proper choice of co- 
efficients. These general forms are provided in the next section. 
The specific formulations based on the proprietary data provided 
are presented only in Appendix B, which is proprietary so as to 
preserve our legal obligations to the manufacturers. 

Some parameters have been assumed to be the same for both 
concepts. These are: 

. The useful load increments of 50, 100, 157, 300 and 450 
tons 

. The helium replenishment rate of 25% per year 
Helium cost of $26 per 100 cu. ft. 

. The insurance rate of 4% per year on the HLA cost (3.5% 
on HLA cost plus spares) 


4-27 


CRiGsMAL PAGE 
OF POOR QUALITY 



. Flight crew size is 3 per HLA (1,000 hours per shift per 
year), and total costs are 77,000 per year 

. Burden on direct labor (flight and maintenance crew) of 
30% 

. Fuel cost of 75 cents per gallon 

. Specific fuel consumption of .5 lbs. /hr per horsepower 

. Oil costs at 5% of fuel costs 

. Maintenance man-hour costs of $18,000 per year for 
mechanics, $22,000 per year for chief mechanics 

• Support costs for an austere HLA facility (Table 4-4). 

As the flight crew costs represent a small proportion of the total 
costs it was decided to forego the usual analysis of stepwise in- 
creases in crew costs with shifts and the consequent analytical 
complications. To this end it was assumed that for any utilization 
that required fractions of a shift, it would be assumed that the 
flight crews providing those hours would be paid on a per flight 
hour basis, rather than an annual salary. By this means, a con- 
stant figure for flight crew costs per hour was justified. 

As described and illustrated in Section 3.1; a basic frame- 
work was developed for both cost models. This framework is de- 
tailed in Figure 4-4. The rest of the model is common to all 
concepts; the programming technique used has ensured that the same 
storage locations are used for the same intermediate and final 
outputs in all cases. Ready comparability is thus ensured and a 
common print control can be employed for all concept results. 

The program for each concept is introduced by a print routine 
which provides a record, for each run, of the development costs 
per HLA (DEV) , acquisiton costs per HLA (TFAC) , the corresponding 
prorated, annualized capital recovery costs (LEAS) , annual cost of 
administration and support (IOC), annual cost of insurance (INS), 
total cost of helium replenishment per year (HEL) , the total 
annual fixed cost (AFC) , and the project costs for crew (CREW) , 
direct labor burden (BURD) , fuel (FUEL) , and maintenance (MAINT) , 
and lastly the total project cost (TOT) . Between the print routine 
and the main program all the sensitivity parameters are initialized 
to selected values for each run. 

In the following section, the rationale and development of 
the cost estimation methodology are outlined, consisting of the 
analysis framework, the analysis elements, and the basic cost 
estimating relationship that result from averaging the two concepts. 


4-28 



CAfITAL AND SUPPORT 
COST SUBMODEL 



M-l 

o 

c 

o 

•H 

-M 

•H 

c 

•H 

(U 

'O 

u 

0 

M-l 

m 

1 

t3 

C 

03 



if) 


U 

CN 

0) 

1 

-p 


0) 


B 


(d 

♦H 

p 

1 

m 


Di 

0) 

1— 1 

<D 

0) 


T3 

Xi 

O 

rd 

e 

Eh 

AJ 

Q) 

if) 

d) 

0 


u 




0 


4-29 


F I G U R E 4-4. The H LA Job Cost Model 






















4. 2. 3.4 Basic Cost Estimating Relationships . The manufacturer's 
cost data falls into the following categories: 

. Development cost (including certification) 

. Flyaway cost vs. quantity produced (including all pro- 
duction associated costs) 

Spare costs 

Vehicle depreciation 

. Insurance costs 

Helium replenishment 

Flight crew cost 

. Maintenance labor costs 

. Maintenance material costs 

. Burden on direct labor 

. Fuel and oil costs 

. Operations support cost 

Buildings, equipment, vehicles, storage facilities 

Ground support equipment 

Ground handling & mooring facilities and equipment 

Operations support maintenance and maintenance 
burden 

- Real estate taxes 

Operations support operating costs 
Operations support staff costs. 

The data as provided by the manufacturers were not necessarily 
categorized as precisely as listed. They were however, compared 
to the above list to aid in identifying and supplying any missing 
material. The data provided and identified as belonging in a 
particular category varied in detail among manufacturers. These 
variations reflected differences in vehicle technology development. 


4-30 



vehicle size, production quantities, and assumptions with respect 
to labor and burden rates, insurance rates, depreciation strategies, 
fuel costs and operations support requirements. In order to ensure 
that the differences in cost reflect only the differences in concept, 
all non-concept dependent parameters were standardized. The re- 
sulting cost estimates in all categories were generalized to repre- 
sent a range of vehicle sizes when those data were not provided. 

Since useful load was a prime determinant of the magnitude of the 
major system components (powered lift system and envelope size) , 
it was used as the measure of size throughout the studies. 

In each concept studied, the manufacturer's data were examined 
and cost estimating relationships developed. Where the data were 
provided in sufficient detail, a curve fitting procedure was used 
to define the cost estimating relationships, as a function mainly 
of useful load and other parameters appropriate to the particular 
category. 

Where the data supplied were limited to a few sizes, the per- 
formance characteristics of other sizes were estimated, by assuming 
similar weight distributions, extending aerodynamic and propulsion 
characteristics using basic aeronautical engineering principles to 
define power requirements and performance, and assuming the same 
cost per horsepower and cost per pound for the powered and un- 
powered subsystems respectively. 

Manning costs were extended by assuming that the flight crew 
per aircraft is unaffected by size; but is increased as the number 
of operating shifts is increased. Crews for complete shifts were 
assumed hired on an annual basis while crews for partial shifts 
were hired on an hourly basis. The net cost per hour of utilization 
remained the same. Maintenance labor estimates were based on past 
aircraft experience, and reflected a diminishing cost per hour as 
utilization increases. 

In most cases, the relationships developed for each component 
had the same general form for each concept. In some cases, simpler 
formulations were possible due to the availability of more complete 
data. The algebraic general form of the resulting CERs is de- 
scribed and discussed in the following pages, together with the 
range of values of the coefficients that resulted. 

Development and Certification Costs per HLA (DEV) . The 

general relationship developed from the data is 

10® X [ A + B (L) ] /N 
where L = Useful load (tons) 

N = Number of HLAs produced 
A, B are coefficients 


4-31 



Where the concepts included a change in envelope structure 
from non-rigid to rigid as useful load increased, the co- 
efficients were discontinuous. The variation with useful load 
was slight. 

"A" ranges from 25 to 35 for non-rigid and 
from 550 to 560 for rigid construction 

"B" ranges from .025 to .040 

Total Aircraft Costs plus Spares per HLA (TFAC) . The 
relationship is 

10^ x[a + B (L)l 

A wide variation in coefficient values reflects the range of 
complexities of manufacture for the various concepts. 

A ranges from 0 to 10 

B ranges from 0.2 to 0.5 

C is approximately - 0.2 for all concepts 

Insurance Cost per HLA per Year (INS) . This cost does 
not depend on the concept to any notable degree, but on the 
capital cost and the risk. A figure of 4% of the aircraft 
cost was used throughout, and expressed for convenience as 
(.035 TFAC) . 

Helium Replacement per HLA per Year (HEL) . This varies 
with concept, since those utilizing less rotor lift required 
more helium for a given useful load. Replenishment of about 
25% per year was assumed with present technology. The general 
form was; 


A (D® 

where "A" varied from 70 to 310 
"B" varied from 1.0 to 1.2 

Flight Crew Costs per HLA per Flight Hour (FC) . As dis- 
cussed earlier, a flat value was taken for FC, based on a 
fixed crew size (pilot, co-pilot, flight engineer) regardless 
of vehicle size and concept. This value was; 

77 

(Note that crew overhead, including training, is covered in 
the Direct Labor Burden category.) 


4-32 


PAGE IS 
OF POOR QUALITY 


I 



Maintenance Labor and Material Costs per HLA per Flight 
Hour . This cost varies considerably with the sophistication 
and complexity of the concept, with the current and projected 
costs of maintenance (particularly where helicopter-type 
rotors were required for a concept) , and with annual utiliza- 
tion. The maintenance crew size is approximately 

. 18 per lOOT for 1000 hrs utilization 

. 24 per lOOT for 2000 hrs utilization 

. 30 per lOOT for 3000 hrs utilization 

The general form of the relationship was; 

+ B (L) ] (U)^ 

where A varies from 0 to -170 
B varies from 6 to 50 
C is approximately -.04 

Note that the maintenance personnel double as needed for 
ground handling crew. 

Direct Labor Burden per HLA per Flight Hour . This of 
course varies with the concept, because of the different 
maintenance requirements; the burden however is a fixed 
proportion of the labor cost, taken as 0.30 in this analysis. 
The general form of the relationship is: 

[a + B (L)] (U)^ 

where A varies from 20 to 35 
B varies from .6 to .9 
C varies from 0 to -.4 

Operations Support Costs per HLA per Year . As developed 
in Appendix B, the cost difference between concepts, be- 
cause of differences in special equipment required, appears 
to be negligible relative to the total costs involved. These 
costs will vary somewhat more strongly with vehicle size, 
since mooring, storage, and maintenance facilities per HLA 
will be functions of size. The general form of this rela- 
tionship is: 


A + B (L) 

where A is approximately 220,000 
B is approximately 180 


4-33 



Fuel and Oil Costs per HLA per Hour . This cost 
varies with each concept, its operations and its size. 
In general, an expression relating useful load, payload 
and speed is required to fully describe fuel and oil 
consumption. Account must be taken of the appropriate 
characteristics associated with the ferry, cruise, and 
hover modes of operation. Such an expression is: 



where A, B, C, D, F, G, J, and K are coefficients and 
E and N exponents. 

The first term (A + B(L)) defines fuel cost (proportional 
to power) at maximum speed and power as a function of 
vehicle size. 


The first term in the brackets 


C 


V 

V 


D 


E 


+ F 


I max I 

corrects this fuel consumption for operation at speeds 
other than Vmax, and properly represents the "minimum 

power speed" (when — = D) . When V = 0, F ensures 


max 


that the hover fuel consumption is correctly estimated. 
The remaining term in the bracket 

corrects for the variation in fuel consumption with 
changes in payload, rotor performance and weight budget. 

This derivation is quite general and sufficiently 
accurate for the analyses in this study. It is applicable 
to operation at cruising speeds up to with payloads 

up to P . When P = 0, and V is entered as the speed for 

ferry, it represents operations using the rotor system as 
the ferry propulsion power, which is valid if the ferry 



4-34 



equilibrium condition requires significant rotor power. 
When rotor power is not required for equilibrium in ferry, 
then an auxiliary propulsion unit can be employed at some 
savings in fuel. Hover is represented by V = 0. 

Typical values of the coefficients and exponents are: 


A 

B 

C 

D 

E 

F 

G 

J 

K 

M 

N 


0 to 350 
5 to 15 


approximately 1.3 
approximately 0.3 
approximately 2.0 
approximately 0.3 


0.1 to 0.15 
0 to 1 

is given by jj, for J i.5 

\ (1-J) , for J ^ . 5 
0.3 to 0.4 

approximately 0.25 


4.2.4 HLA Job Cost Sensitivities 


The sensitivity of the HLA cost costs to variations in the 
cost model input parameters were determined for operational, case- 
study-dependent parameters, and for non-operational , case-study- 
independent parameters. 

Sensitivity of HLA costs to operational parameters are de- 
veloped as appropriate in each case study; the operational param- 
eters are: 


. Speed (cruise, ferry) 

. Payload 

. Time (cruise, ferry, hover). 

. Useful load (size) (L) 

Non-operational parameters that do not vary from application 
to application are: 

Production quantity (N) 

. Development cost (DEV)* 

« . Flyaway cost (TFAC)* 

. Support cost (FAC)* 

. Annual utilization (U) 

. Crew cost (FC)* ) 

Fuel cost* ? Sensitivity Factors 

. Maintenance cost* * 

Parameters marked with an asterisk can be substantially varied 
by means of multiplying by a sensitivity factor. 


4-35 



Averaged HLA cost sensitivities to variations in these parameters 
are presented in Table 4-6, where the cost variations are repre- 
sented as percentage changes from a nominal value calculated from 
a representative set of cost model input parameters. The nominal 
or baseline case values chosen for these parameters represented 
average HLA operations aggregated over a year. Thus these varia- 
tions are reasonably typical of the effects of these parameters, 
which are estimated as part of the Annual Fixed Costs (AFC) and 
then prorated to each job. Spot checks indicated that detailed 
examination of these variations for each case was not necessary 
since the variations from case to case were not sufficient to 
significantly change these average conclusions. 


TABLE 4-6. Averaged HLA Cost Sensitivity 


BASELINE 
VALUE AND 
VARIATIONS 


SENSITIVITY 
NORMALIZED TO 
BASELINE 
COST VALUE 


NON OPERATIONAL 
PARAMETER 


BASELINE 
VALUE AND 
VARIATIONS 


SENSITIVITY 
NORMALIZED TO 
BASELINE 
COST VALUE 


































ASSESSMENT OF THE MARKET FOR 
HEAVY LIFT SERVICES 


CHAPTER 5 




5. ASSESSMENT OF THE MARKET FOR HEAVY LIFT SERVICES 


Page 

Number 

5.1 The Markets for the Transporation and 

Erection of Refinery and Petrochemical Plant 
Components 5-1 

5.2 The Market for the Support of Construction 

of Offshore Permanent Drilling and Production 
Platforms for Oil and Gas 5-4 

5.3 The Market for Movement of Strip Mining 

Power Shovels 5-5 

5.4 The Market for the Support of High Voltage 

Power Transmission Line Construction 5-7 

5.4.1 The United States 5-8 

5.4.2 Canada 5-8 

5.4.3 The Remaining VJorld 5-10 

5.5 The Market for Electric Power Generating 

Plant Construction 5-12 

5.5.1 United States 5-15 

5.5.2 The Foreign Situation 5-17 

5.6 The Market for the Support of the Construction 

of Pipelines 5-32 

5.7 The Market for the Support of the High Rise 

Construction Industry 5-36 

5.7.1 The Market for the Emplacement of Air 

Conditioning/Heating Refrigeration 

Units 5-36 

5.7.2 The Market for Emplacement of Window 

Washing Units 5-37 



Page 

Numljer 


5.7.3 Dismantling Construction Cranes 5-38 

5.8 The Market for the Support of Remote 

Drilling Installations and Operations 5-38 

5.9 The Market in the Logging Industry 

5.9.1 United States 5-39 

5.9.2 The Foreign Situation 5-47 

5.9.3 Worldwide Logging Market Summary 5-56 


5.10 Markets for Unloading of Cargoes in Congested 


Ports 5-56 

5.11 The Market for the Transportation and 

Rigging of Heavy and Outsized Components 5-65 

5.11.1 United States 5-65 

5.11.2 Western Europe 5-70 

5.11.3 The Remaining World 5-70 

5.11.4 Other Potential Markets for HLAs 5-71 

5.12 The Potential Military Market 5-72 

5.13 Concluding Remarks 5-72 


I 



LIST OF 


FIGURES 


5-1 Miles of Overhead Transmission 

5-2 Alcan Pipeline Project and Connecting 

Pipelines 

5-3 Sections and Regions of the United States 


Page 

Number 

5-9 

5-33 

5-46 




LIST OF TABLES 


Page 

Number 


5-1 

Crude Oil Refining Capacities in Major 
Refining Centers Worldwide (1000 barrels 
per calendar day) 

5-2 

5-2 

Potential Annual Additions in Refinery 
and Petrochemical Plant Construction 

5-3 

5-3 

Platform Construction 

5-6 

5-4 

Barge Lift Capacity 

5-7 

5-5 

Estimate of the Market for Transportation 
of Strip Mining Shovels 

5-7 

5-6 

Installation of High Voltage Transmission 
Lines , United States 

5-10 

5-7 

Market Opportunities for HLA in Power 
Transmission Line Construction 

5-12 

5-8 

Light Water Moderated Reactor Nuclear 
Steam Supply System Components 

5-13 

5-9 

History of the Domestic Reactor Market 

5-16 

5-10 

Reactor Commitments 

5-17 

5-11 

Future Electric Generating Capability 
Additions by Regions 

5-18 

5-12 

Future Generating Capacity 

5-20 

5-13 

Estimated Annual Added Capacity in the 
United States 

5-21 

5-14 

Generation Added or Planned in Ccinada 

5-22 

5-15 

Estimated Annual Additional Capacity in 
Canada 

5-23 

5-16 

Electric Energy Production in OECD Europe 

5-24 



Page 

Number 


5-17 Estimated Annual Market in OECD Europe for 

the HLA 5-24 

5-18 Expected Energy Production in Japan 5-25 

5-19 Estimated Annual Market in Japan for the 

HLA 5-25 

5-20 Developing Countries in Europe 5-26 

5-21 WAES Scenario Assumptions 5-27 

5-22 Real GNP Growth Rate Assumptions: 

1972-2000 5-27 

5-23 Primary Electricity Generation in Developing 

Countries: 1972-2000 5-28 

5-24 Average Additional Electric Capacity 5-29 

5-25 Estimated Annual Additional Capacity in 

Developing Countries 5-29 

5-26 Installed Electric Generating Capacity in 

USSR 5-30 

5-27 Estimated Market for HLA in the USSR 5-30 

5-28 Total Annual Potential Market- 

Power Generating Plant Construction 5-31 

5-29 Non-Communist Pipeline Construction, 

1977-78 5-34 

5-30 Market Opportunities for Heavy Lift Services 5-35 

5-31 Total Market for Support of Construction 5-37 

5-32 Market for Retransportation of Support of 

Services of Remote Drilling Sites 5-38 

5-33 Areas of Commercial Timberland in the United 

States (by type of ownership and section, 

January 1, 1970) 5-40 

5-34 Areas of Commercial Timberland in the United 

States (by forest type groups, 1970) 5-41 


I 





Page 

Number 

5-35 

Supplies of Roundwood Products from U.S. 
Forests (by section and species group, 1952, 
1962, and 1970, with projections to 2020) 
(cubic feet, millions) 

5-42 

5-36 

Supplies of Sawtimber Products from U.S. 
Forests (by section and species group, 1952, 
1962, and 1970, with projections to 2020) 
(board feet, millions) 

5-43 

5-37 

Supplies of Roundwood Products from U.S. 
Forests (by owner class, and species group, 
1952, 1962, and 1970, with projections to 
2020) (cubic feet, millions) 

5-44 

5-38 

Supplies of Sawtimber Products from U.S. 
Forests (by owner, class, and species group, 
1952, 1962, and 1970, with projections to 
2020) (board feet, millions) 

5-45 

5-39 

Land and Forest Areas in the World (acres, 
millions) 

5-48 

5-40 

Forest Growing Stoclc in the World (by area 
and species group) (cubic feet, billions) 

5-49 

5-41 

World Production of Roundwood Timber (cubic 
feet, millions) 

5-50 

5-42 

Forest Land Area in Canada (by Province, 
1967) (acres, thousands) 

5-51 

5-43 

Merchantable Timber in Canada on Inventoried 
Nonreserved Forest Land (by Province and by 
Softwoods and Hardwoods, 1968) (cubic feet, 
millions) 

5-52 

5-44 

Timber Harvest in Canada and Estimated 
Allowable Annual Timber Cut (by Province, 
1970) (cubic feet, millions) 

5-53 

5-45 

Production of Selected Timber Production 
Canada, 1970, with Projections to 2000 

5-54 

5-46 

Timber Production in Europe (cubic feet, 
millions) 

5-55 



Page 

Number 


5-47 Timber Production in Other Areas of the 

Developed World (cubic feet, millions) 5-55 

5-48 Timber Production in Developing Countries 

of Latin America, Africa, Asia, and Oceania 
(cubic feet, millions) 5-57 

5-49 Summary of Annual Logging Market (Millions 

of Cubic Feet) 5-58 

5-50 OPEC Ports-Likely Completion Schedules for 
Planned Commercial Port Facilities by 
Country, 1980 and 1985 5-60 

5-51 Aggregate Capacity Ratings of Commercial 

Ports by Country, 1980 and 1985 5-61 

5-52 Projected Port Status of OPEC Countries 

in the Middle East and North Africa, 1980 5-62 

5-53 Projected Port Status of OPEC Countries 

in the Middle East and North Africa, 1985 5-63 

5-54 Estimated Container Cargoes in Congested 

Ports 5-64 

5-55 Maximum Size Units by Industry 5-66 

5-56 Market for Transportation and Rigging of 

Heavy and Oversized Components 5-71 

5-57 Items That Could be Shipped Assembled 5-73 

5-58 Summary of Markets Requiring Heavy Lift 

Services 5-76 


I 



5. ASSESSMENT OF THE MARKET FOR HEAVY LIFT SERVICES 


Assessments of the magnitude of the potential domestic and 
worldwide markets for heavy lift services are presented in this 
chapter. The markets corresponding to eleven of the thirteen 
applications discussed in Chapter 3 were analyzed. The two case 
studies for which a corresponding market assessment was not per- 
formed were the transportation of houses and the transportation of 
maize in Zaire. The case study results indicated no viable HLA 
market for the transportation of maize in Zaire. The "transporta- 
tion of homes" case study revealed a marginal market for the 
transportation of stick built homes under a restricted set of 
conditions. Therefore, no assessments were made for these two 
case study areas. 

For each assessment, the background data upon which the 
assessment is based is first reviewed. The procedure for using 
this data base to determine projected requirements for heavy lift 
services in domestic and worldwide markets is then discussed. 
Finally, the results of the assessments are presented in quanti- 
fied form. 


5.1 The Markets for the Transportation and Erection 
of Refinery and Petrochemical Plant Components 

The requirements for transportation and lifting in the con- 
struction of refineries and petrochemical plants vary greatly with 
the type, design, and size of the plant installed. A general 
indication of the number of heavy lifts, which typically fall 
within the range from 100 tons to 500 tons, is one lift for each 
2000 bbl/day installed capacity (Reference 4). 

The installation of re'fining capacity varies greatly between 
different years and various areas of the world depending on the 
current and expected demand for refined petroleum products and 
petrochemicals . 

Long-term forecasts of expected refinery construction are 
generally not available. It cannot be accurately estimated based 
purely on future demand for refined products because in many areas 
refinery capacity is greatly underused and increased demand could 
be satisfied both through increased use and new plant construction. 
Short-term forecasts can be made based on planned construction, 
since the lead time for most refinery construction is several 
years. Such short-term forecasts will not be very useful for 


5-1 



this project. It has therefore been decided that a reasonable 
estimate of the refinery expansion in the future can be derived 
through an estimate of the average annual expansion of over the 
recent past. The refinery expansion between the period from 1970 
to 1978 has been selected as a reasonable estimate of the probable 
average expansion in the future. The average refinery expansion in 
the various regions of the world is presented in Table 5-1. 

Due to the fact that it is cheaper and easier to transport and 
handle crude oil than refined products most refineries have been 
and are expected to be constructed in the major consuming regions 
of the world. United States, Japan, and Western Europe have there- 
fore been and are expected to continue to present the major markets 
for new refinery construction. 

With the increasing cost of labor, the draft restrictions for 
crude oil tankers, and the increasing economic and political power, 
two new trends are emerging in refinery construction. These are: 


TABLE 5-1. Crude Oil Refining Capacities in Major Refining Centers Worldwide 
(1000 barrels per calendar day) 


WORLD REGION 

1970 

1978 

AVERAGE ADDITIONS 
1970-1978 

United States 

12,079 

16,760 

520 

Canada 

1,355 

2,165 

90 

Western Europe 

14,651 

20,728 

675 

Japan 

2,796 

5,462 

296 

Far East 

2,342 

4,715 

264 

Latin America & 
Caribbean 

5,334 

8,427 

344 

Middle East 

1r070 

3,506 

271 

Africa 

704 

1,467 

85 

Communist Areas 

6,952 

13,938 

776 


SOURCES: 1970— International Petroleum Encyclopedia 

1978 — Oil and Gas Journal, Dec. 26, 1978. 


I 


5-2 


ORiGiKAL PAGE iS 
OF POOR Q0AL6TY 



. Expansion of refinery centers in the Caribbean to serve 
the U.S. market 

. Expansion of export refineries in the OPEC member 
nations . 

These two trends have in the recent past and will most likely 
in the future, increase somewhat the amount of refinery construc- 
tion that will be undertaken in major oil exporting nations and the 
major refining centers in the Caribbean. 

The projections for potential future markets for the HLA in 
refinery construction in all the major oil refining areas of the 
world are presented as Table 5-2. 


TABLE 5-2. Potential Annual Additions in Refinery and Petrochemical 
Plant Construction 


WORLD REGION 

AVERAGE ANNUAL ADDITIONS 
TO REFINING CAPACITIES 
(1000 BBL/DAY) 

AVERAGE NO. OF UNITS 
100-500 TONS TO BE 
EMPLACED 

United States 

520 

260 

Canada 

90 

45 

Western Europe 

675 

338 

Japan 

296 

148 

Far East 

264 

132 

Latin America & 
Caribbean 

344 

172 

Middle East 

271 

136 

Africa 

85 

43 

Communist Areas 

776 

386 

Total 

3321 

1660 


5-3 







5.2 The Market for the Support of Construction 

of Offshore Permanent Drilling and Production j 

Platforms for Oil and Gas ‘ 

The exploration and production of oil in offshore areas are ! 

highly complex and capital intensive. The technology and techni- ' 

ques used are rapidly changing, and exploration and production are 
increasingly undertaken at greater water depths at considerable , 

expense and capital requirements. 

The construction of offshore platforms was at a peak in 1975 
when a total of 217 offshore production and drilling platforms were 
completed. Since then, the number of platforms completed has 
dwindled to 88 completions in 1976, and 75 in 1977, In 1978, a 
total of only 61 platforms are scheduled for completion. 

The United States, primarily in the Gulf of Mexico, has con- 
sistently been the leading market for offshore platform construc- 
tion, and between 1974 and 1977, the United States has accounted 
for between 50% and 67% of the platforms constructed each year. In 
1978, the United States will account for 59% of the completions. 

The North Sea is the second largest market. In 1974 only one 
offshore platform was completed in the North Sea area, which accounted 
for a meager 8% of the worldwide total. In 1975 the number of 
completed platforms increased to 16% or 7.4% of the world total in 
that year. In 1976 and 1977, the number of platforms completed 
declined to 11 and 12, respectively. Due to the general decrease 
in the market elsewhere in the world, the percentage of the total ! 

was 12.5% in 1976 and 16% in 1977. In 1978, 12 North Sea platforms 1 

are scheduled for completion, which will account for 16.4% of the ; 

world market. 

The relative distribution of platform construction between 
world areas is expected to remain relatively unchanged from the 
present situation in the late 70' s. The United States is expected 
to present the largest market, although the center of activity may 
change from the Gulf of Mexico to the currently explored areas off 
the East Coast and Alaska, depending on the results of this ex- 
ploration. The North Sea area is expected to remain very active 
with continued expansion of platforms for existing and new oil and 
gas field. 

Other areas that may develop further include the offshore 
areas of West Africa and Australia, as a result of the change in 
political sentiment with respect to offshore exploration and 
production in these areas. 


5-4 


I 



The total number of platforms to be constructed will fluctuate 
greatly in future years as in the past as indicated in Table 5-3, 
which also includes an estimate of future activities based on 
historical trends. One trend that has been indicated by the 
industry is towards larger and more complex structures. The con- 
struction support industry, i.e., the owners of derrick barges, has 
responded to this trend by providing barges with cranes and derricks 
of increasingly larger capacities (Table 5-4) . In 1977 a total of 
146 construction barges and 46 combination vessels were in existence. 
Of these 192 vessels, 57 or one-third of the fleet had derrick or 
crane lifting capabilities exceeding 500 tons, and a large number 
of the fleet have capacities exceeding 500 tons, and a large number 
of the fleet have capacities exceeding one thousand tons. The 
barges (4%) had lifting capacities between 300 and 500 tons, while 
the great majority of the 127 had lifting capacities of less than 
300 tons. The HLA can act as a complement to these latter smaller 
lifting capacity barges to compete for the construction of platforms 
involving the larger modules. 


5.3 The Market for Movement of Strip 
Mining Power Shovels 

The market for the movement of strip mining power shovels is 
relatively limited, and the U.S. market is dominated by a few major 
companies. According to Marion Power Shovel Company at Marion, 

Ohio, a major manufacturer of shovels, the annual production in the 
United States is estimated to be approximately 70 per year. These 
70 shovels need to be transported from the manufacturing plants to 
the mine sites. 

In addition to the new shovels, there is also a market for the 
transportation of used power shovels, which at times are transferred 
from one mine site to another, either as a result of a sale or due 
to changes in plans of the operator. At the present time there are 
approximately 500 shovels in existence in the United States. On 
the average each shovel is disassembled and moved once in its 20- 
year economic life. Consequently an average of 25 used power 
shovels are transported every year. 

No statistics are available on the total foreign market 
production. An estimate has been made that the total market might 
be twice as large as the U.S. market. A number of these shovels 
are sold in markets that are distant from the place of production. 

In these instances, they have to be disassembled for transportation 
by ship from place of production to the mine site. In cases where 
these shovels will have to be disassembled for transportation by 
ships, it is doubtful that the use of the HLA would result in 
saving part of the transportation cost. Table 5-5 summarizes the 
total market described here. 


5-5 



TABLE 5-3. Platform Construction 






















TABLE 5-4. Barge Lift Capacity 



TOTAL 
NO. OF 
BARGES 

MAXIMUM 

LIFT CAPACITY IN TONS 

500 OR MORE 

300-500 

LESS THAN 300 

Straight Construction Barges 

146 

27 

7 

112 

Combination Vessels 

46 

30 

1 

15 

Total 

192 

57 

8 

127 


SOURCE: Offshore, November 1977. 


TABLE 5-5. Estimate of the Market for Transportation of Strip Mining Shovels 


U.S. MARKET 

No. OF SHOVELS MOVED/YR. 

NEW 

70 

USED 

25 

FOREIGN MARKET 

N.A. 


5.4 The Market for the Support of High Voltage 
Power Transmission Line Construction 

For transmission lines of less than 230KV capability, large 
poles rather than transmission towers are used. These poles are 
generally light enough to be preassembled at a central site and 
transported to the site by conventional helicopters or truck/ 
trailers. The potential market for the HLA is presented for the 
transporting of extra high voltage transmission lines because the 
towers are large and cannot be preassembled for transport by con- 
ventional trucks or existing helicopters. If the towers for the 
extra high voltage transmission lines (e.g., 345 KV, 500 KV, 750 
KV, 1500 KV) are to be preassembled, a f reef lying vehicle with a 
payload capability greater than existing helicopters has to be 
developed. It should be noted, however, that the Skycrane S-64E 
helicopter is currently being used to emplace towers in the lower 
voltage ranges of the extra high voltage transmission lines. In 
cases where the Skycrane has to emplace the larger towers, e.g., 
750 KV lines, for which the towers weigh approximately 25 tons, 
half of the tower is generally installed in a conventional manner. 


5-7 


0R^G5^<AL PAGE V- 
(jf POOR QUALITY 




while the other half with a weight within the load capacity of the 
Skycrane, is preassembled , transported and emplaced on the site- 
constructed bottom half of the structure. Based on these observa- 
tions, this survey of market opportunities was concentrated on 
identifying construction activity in the upper ranges of the high 
voltage overhead transmission lines. 

The basis for the estimated time requirement is 40 hours of 
HLA activity for every 60 miles of transmission line capacity in- 
stalled. This estimate is based on the case studies of transmission 
line construction. 

5.4.1 The United States 


The United States is the world's leader in installed generating 
capacity, and is consequently also the leader in the installation 
of total units of extra high overhead voltage lines of 345 KV, 500 
KV, and 765 KV. Historical and planned future circuit miles of 
line of the three above voltages are presented in Figure 5-1. A 
total of 1829 miles of 345 KV lines was installed in 1976. A total 
of 2,305 is planned for 1977, and annual increases up to a 1980 
installation of 2,305 miles are planned for this type line. In 
the 500 KV type line a total of 649 miles was installed in 1976. 
Increases to annual installations of between 1300 to 1500 miles per 
year are expected up to 1980. The activity in 765 KV line con- 
struction has in the past, and is expected for the future, to be 
relatively limited. In 1976 a total of 46 miles of 765 KV was 
constructed. None were planned or constructed for the year 1977. 
Plans for 1978, 1979, and 1980 call for construction of 172 miles, 

181 miles, and 358 miles, respectively. 

The recent and immediate future transmission line construction 
activity is closely correlated with the activity in the construction 
of new generating capacity. In 1980, the generating capacity is 
again expected to surge, and high voltage transmission lines will 
follow this upward trend. It is expected that the construction of 
extra high voltage overhead transmission lines will be a conservative 
estimate of the activity in the remainder of the next decade. On 
this basis the expected heavy lift market opportunities in the 
United States are outlined in Table 5-6. 

5.4.2 Canada 


In Canada a total of 807 miles of overhead transmission lines 
with capacity of 345 KV and above were constructed in 1977. Of 
this, 680 miles (84%) were constructed in the province of British 
Columbia. In 1978 462 miles are planned, of which one-third will 
be installed in Quebec and another one-third in Ontario. The 
remainder is distributed between Manitoba and New Brunswick. 


5-8 



CIRCUIT MILES 



FIGURE 5-1. Miles of Overhead Transmission 


5-9 




TABLE 5-6. Installation of High Voltage Transmission Lines, United States 


LINE TYPE 

PLANNED 1980 
CIRCUIT MILES 

345 KV 

3211 

500 KV 

1300 

765 KV 

358 

TOTAL 

4869 


The relatively low rate of installation planned for 1978 
corresponds to the low rate of new generating plant additions. 

The capacity planned for 1980 and beyond corresponds more closely 
to the additions to plant capacity in 1977. It is therefore 
expected that the future additions will be similar to those in 
the year 1977. It is therefore expected that in Canada the 
average annual addition of 345 KV and over transmission circuit 
miles for which the HLA will be usable, will be 800. 

5.4.3 The Remaining World 

The plans for transmission line construction activity in the 
remainder of the world are not readily available. To obtain this 
information would require research well beyond the scope of this 
study. Instead, it was decided to estimate the expected trans- 
mission line construction activity based on the planned additions 
to generating capacity. 

The methodology for making such an approximation was obtained 
from a specialist on electric generating capacity and transmission 
line construction in the Projects Department of Latin American 
and Caribbean Regional Office of the World Bank. It should be 
noted that there are a number of variables in the construction of 
transmission lines, which this methodology cannot answer. It 
will, however, give an indication of the relative size of the 
potential markets that do exist. 

This methodology is as follows: 

. Out of the total investment in a power generating and 

distribution system, the high voltage transmission cost 




5-10 




represents a cost equal up to 15-25% of the cost of a 
generating plant. This will vary according to the type 
of plant. The cost per Kw of installed generating capacity 
for various types of plants is generally as follows; 

Hydroelectric $600-$2100 

Steam fossil fuel $350-$400 

Nuclear $800-$1000 

Based on the above, the average cost of high voltage 
transmission lines per Kw of installed capacity can be 
expected as : 

Hydroelectric $180 

Steam fossil fuel $ 75 

Nuclear $180 

The circuit line lengths can be estimated as follows: 

Circuit Length = Total Transmission Line Cost 

$/Mile 

The estimated unit cost per line for high voltage trans- 
mission is; 

KV 115 138 161 230 345 500 745 

$1000/Mile 72 89 105 121 201 274 362 

The relative distribution of power transmission line 
installations among the various voltage lines in the 
United States is assumed to be typical. For the year 
1976, the relative distribution of circuit miles and 
estimated proportion cost of installation in the United 
States are as follows: 


KV Capacity 

115 

138 

161 

230 

345 

500 

765 


% of Circuit 
Miles 


14.5 

16.3 
3.4 

32.4 
24.2 

8.6 

.6 


% of Total 
Installed Cost 

7.4 

10.2 

2.5 

27.5 
34.3 

16.6 

1.5 


Using the above data it was possible to estimate the 
total transmission lines of various voltages based on the 
generating capacity additions worldwide. The results of 
this analysis are presented in Table 5-7. 


5-11 



TABLE 5-7. Market Opportunities for HLA in Power Transmission Line Construction 


AREA 

ANNUAL ADDITIONS TO 
GENERATING CAPACITY (1^) 

ESTIMATED TOTAL 
EXPENDITURE FOR 
TRANSMISSION LINES 
(IN THOUSANDS $) 

ESTIMATED TOTAL 
CIRCUIT KM 

345 KV 500 KW 766 KV 

OECD Europe 






• Nuclear 

7.580 

1,364,400 




• Hydro & Geothermal 

163 

29,340 

2970 

1056 

72 

• Steam & Fossil Fuel 

4,648 

348,600 




Japan 






• Nuclear 

3.086 

555,480 




• Hydro & Geothermal 

761 

136.800 

1504 

566 

39 

• Steam & Fossil Fuel 

3,207 

240,525 




Develop! r>g World 






• Nudear 

12,956 

2,332,080 




• Hydro & Geothermal 

3,854 

693,720 

2036 

725 

50 

• Steam & Fossil Fuel 

3,579 

268,425 




USSR 






• Nuclear 

668 

120,240 




• Hydro & Geothermal 

1,524 

274,320 

1486 

529 

36 

9 Steam & Fossil Fuel 

6,363 

477,225 





5.5 The Market for Electric Power Generating 

Plant Construction 

The power generating industry can be divided into three basic 
sectors ; 

Nuclear plants 

. Steam fossil fuel, gas turbines, and internal combustion 
plants 

. Hydroelectric plants. 

Each of these types of plants has differing requirements in 
terms of the weight of the components to be brought to the site. 

The major components to be transported and positioned for a typical 
nuclear power plant are listed in Table 5-8. In addition, turbine 
gear, turbine shaft and generators have to be transported and 
erected and heavy structural girders are required. 


5-12 




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5-13 


ORiGSE'v^AL PAGE (s 
OF POOR quality 


SOURCE: A.J. Keating, the Transport of Nuclear Po«er Contponenfs, Combustion Engineering, Paper presented at LTA Workshop. Monterey, California. September 8-17, 1974. 




For a typical 600 MW fossil fuel plant the heavy components 
required to be transported and erected include: 

• 5 girders each 140-175 tons 

1 generator, 300 tons 
. 1 deaerator and tank, 100-120 tons 

1 main steam drum, 300 tons 
. 3 pressure stages, each 70 tons 

. 1 turbine, 100-150 tons 

. 1 turbine shaft, 100-150 tons. 

The hydroelectric plants are of a completely different con- 
struction, and the major parts are the turbines and generators. 
Parts range from between 100 to 300 tons each. 

It is recognized that the heavy lift requirements will vary 
depending on site location, type of plant, size, and a number of 
other factors. For this analysis, the simplifying assumption is 
made that for each plant constructed, the requirements will corre- 
spond to the requirements enumerated in the case study. The major 
variable factor will be the size of plants required. The dimension 
of the vehicle will have to be adjusted to the largest piece of 
equipment to be transported and lifted. The HLA lifting require- 
ments for each sector of the industry is therefore estimated to be 
as follows: 

. Nuclear plants - 500 tons to 1000 tons 

. Fossil fuel plants - 300 tons 

. Hydroelectric plants - 300 tons 

. Gas turbine plants - 300 tons. 

In cases where data on individual plants are not available, 
the following assumptions are made with respect to average plant 
size. 


MW Generating Capacity 


• 

Nuclear 

1000 

• 

Steam 

400 

• 

Hydroelectric 

100 

• 

Gas turbine 

100 


These averages are based upon installed generating capabilities in 
the United States as follows: 


5-14 






Plants 

Generating Capacity 

Nuclear 

United 

States 

49 

49,880 

Gas turbine 

United 

States 

524 

47,736 

Steam 

United 

States 

951 

385,609 

Hydro 

Pacific 

Contiguous 

272 

30,143 


States 


Source: 1978 Statistical Report, Electrical World, March 15, 1978, p. 95. 

This market is discussed in terms of the situation in the 
United States and the rest of the world. 

5.5.1 United States 

The construction of nuclear plants in the United States has 
decreased mainly because of the regulatory constraints imposed and 
the environmental objections to this type of plant. The historical 
situation in the nuclear power plant market is presented in Table 
5-9. 


The future market for nuclear power plants based on commit- 
ments currently made is presented as Table 5-10. A forecast by a 
staff member at Combustion Engineering based on a report by the 
U.S. Atomic Energy Commission expects that between 13 and 18 pres- 
surized water reactor plants and between 5 and 8 boiling water 
reactor plants will be completed each year between the years 1990 
and 2000 (Reference 5) . 

The commitments by region of the type of generating plant 
added in 1977 and planned through 1980 are presented as Table 5-11. 

A forecast by Electrical World and the Federal Power Commission of 
future generating capacity up to 1995 is presented as Table 5-12. 

The average generating capacity to be added per year (as 
planned up to 1980 and forecast between 1977 and 1995) are: j 




Planned Additions 

Forecast 



To 1980 

1977-1995 

• 

Conventional and pro- 
posed hydroelectric 

3,950MW 

1,493MW 

• 

Fossil fuel steam 

16,332MW 

14, 365MW 

• 

Gas turbine 

1,523MW 

1,493MW 


Nuclear steam 

8 , 582MW 

14 , 167MW 


The expected annually added capacity in the United States 
based upon the average forecasted capacity additions between 1977 
to 1980 is presented as Table 5-13. 


5-15 



TABLE 5-9. History of the Domestic Reactor Market 




TOTAL 

OD 

7,471^ 

16.603 

25.633 

12.903 

7.203 

14.266 

15.122 

34.322 

39.862 

27.058 

4.100 
3.440 

5.100 

213.083 

< 

16^ 

20 

30 

14 

7 

14 

16 

30 

35 

20 

4 

3 

4 

213 

WESTINGHOUSE 

U 

23 

30 

43 
35 

44 

33 
53 

34 
39 
30 

100 

0 

0 

CO 

flO 

1.690 

5.015 

10,912 

4,532 

3.189 

4.664 

8.705 

11.546 

15,709 

7,996 

4.100 

00 

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6 

13 

4 

3 

5 
9 

10 

14 
7 

4 
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47 
24 

48 
41 
21 
28 
45 
19 
27 

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6 

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0 

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29 

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100 

0 

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3 

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0 

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CO 

YEAR OF 
SALE 

195& 

1965 

1966 

1967 

1968 

1969 

1970 

1971 

1972 

1973 

1974 

1975 

1976 

1977 

Totals 


5-16 


I 


SOURCE: Electrical WoHd. January 15. 1978. 




TABLE 5-10. Reactor Commitments 



UNITS 

MW 

Operating reactors 

67 

47,727 

To operate in 1978 

8 

7,849 

1979 

7 

7,442 

1980 

11 

11,740 

1981 

11 

12,363 

1982 

17 

18,190 

1983 

11 

12,235 

1984 

21 

24,576 

1985 

12 

13,812 

1986 

11 

1 2,750 

1987 

I 7 

7,894 

1988 

6 

6.785 

1989 

I ^ 

5,618 

1990 

4 

4.580 

1991 

2 

2,080 

1992 

1 

1,150 

1993 

- 

- 

Indefinite 

7 

7,577 

Total committed 

208 

204,368 


SOURCE; Electrical World, January 15, 1978. 


5.5.2 The Foreign Situation 

With the exception of Canada and other OECD countries, no com- 
prehensive and detailed forecast of the average generating capacity 
that can be expected for the future is readily available. It was 
therefore decided to use the average additions installed in the 
recent past as an indication of the situation that can be expected in 
the future. 

5. 5. 2.1 Canada . The capacity added in 1977 and the planned capa- 
cities up through 1980 are presented as Table 5-14. The average 
capacity to be installed between 1977 and 1980 is as follows: 




Hydroelectric 

Average Capacity in MW 
2410 


• 

Fossil steam 

1164 


• 

Nuclear 

1150 


• 

Combustion turbine 

208 


The expected annually added capacity market for HLA in Canada, 
is presented in Table 5-15. 

5. 5. 2. 2 OECD Europe . The expected electric energy production in 
OECD Europe between 1974, 1980, and 1985 is described in Table 5-16. 


5-17 


ORIGiMAL PAGE fS 
OF POOR Q’j.AUlY 




TABLE 5-11. Future Electric Generating Capability Additions by Regions (MW) 



PRIME 

MOVER 

ADDED 

1977 

PLANNED FOR 

TOTAL 
ADDITIONS 
NOW PLANNED 

1978 

1979 

1980 

1981 8i 
BEYOND 


Conventional hydro 

- 

- 

- 

- 

95 

95 


Pumped storage 

- 

- 

- 

- 

- 

- 


Fossil steam 

- 

527 

- 

- 

818 

1.345 

New England 

Nuclear steam 

- 


- 


6,831 

6,831 


1C 

- 

11 

- 

6 

27 

44 


Comb, turbine 

95 

- 

- 

- 

191 

191 


Total 

95 

538 

- 

6 

7,962 

8.506 


Conventional hydro 

- 

- 

- 

31 

205 

236 


Pumped storage 

- 

- 

- 

- 

1,215 

1,215 


Fossil steam 

2,372 

357 

1.132 

395 

4,085 

5,969 

Middle Atlantic 

Nuclear steam 

1.288 

880 

1.032 

1,870 

16,796 

20.578 


1C 

- 

- 

- 

- 

240 

240 


Comb, turbine 

- 

- 

- 

- 

130 

130 


Total 

3,660 

1,237 

2,164 

2.296 

22,671 

28,268 


Conventional hydro 

_ 

_ 

40 


_ 

40 


Pumped storage 

- 

- 

- 

- 

~ 

- 


Fossil steam 

4,205 

4.131 

3,082 

2.693 

13,083 

22,989 

East North Central 

Nuclear steam 

673 

1.283 

1,878 

1.95B 

20,727 

25,846 


1C 

6 

20 

- 

10 

15 

45 


Comb, turbine 


213 

- 

- 

- 

213 


Total 

4,884 

5,647 

5,000 

4,661 

33,825 

49,133 


' Conventional hydro 

! - 

_ 

_ 





Pumped storage 

- 

- 

160 

- 

- 

160 


Fossil steam 

3,196 

2,412 

1.705 

2,686 

11,390 

18,193 

West North Central 

Nuclear steam 

- 

- 

- 

- 

5,626 

5,636 


1C 

4 

8 

6 

16 

36 

66 


Comb, turbine 

266 

904 

144 

198 

1,360 

2,606 


Total 

3,466 

3.324 

2,015 

2,900 

18,412 

26,651 


Conventional hydro 

_ 

_ 

_ 

113 

366 

479 


Pumped storage 

250 

340 

240 

208 

3,670 

4,458 


Fossil steam 

2,044 

1,369 

515 

4,245 

13,875 

20,004 

South Atlantic 

Nuclear steam 

2,642 

1,588 

2.342 

900 

21,122 

25,952 


1C 

18 

- 

1 

- 

38 

39 


Comb, turbine 

329 

288 

20 

820 

820 

1,948 


Total 

5,283 

3,585 

2,118 

6,286 

39,891 

52,880 


Conventional hydro 

70 

- 

_ 

135 

138 

273 


Pumped storage 

- 

1,300 

- 

- 

- 

1,300 


FcMsil steam 

1,300 

1,655 

460 

995 

7,280 

10,390 

East South Central 

Nuclear steam 

IP 

1,927 

1,148 

2,325 

3,250 

11,361 

18.104 


Comb, turbine 


_ 



50 

50 


Total 

3,297 

4.103 

2,785 

4,380 

18,849 

30,117 


5-1 R 


I 




TABLE 5-11. Future Electric Generating Capability Additions by Regions (MW) (Continued) 



PRIME 

MOVER 

ADDED 

1977 

PLANNED FOR 

TOTAL 

1978 

1979 

1980 

1981 & 
BEYOND 

ADDITIONS 
NOW PLANNED 


Conventional hydro 


- 

— 

218 


218 


Pumped storage 

- 

- 

- 

- 

100 

100 


Fossil steam 

2,992 

4,496 

4.238 

4,874 

14.911 

28 519 

West Sooth Central 

Nuclear steam 

- 

912 

- 

585 

10,584 

12,081 


1C 

- 

- 

- 

_ 




Comb, turbine 

300 

- 

- 

- 

1,198 

1,198 


Total 

3,292 

5,408 

4.23B 

5.677 

26.793 

42,116 


Cortvenilonai hydro 

_ 

98 

240 

13 

1,116 

1,467 


Pumped storage 

- 

- 

100 

no 

1,123 

1.333 


Fossil steam 

400 

825 

2,263 

1,785 

7,687 

12 560 

Mountain 

Nuclear steam 

- 

330 

- 

— 

1,632 

1,962 


1C 

- 

- 

- 

_ 




Comb, turbine 

117 

- 

190 



190 


Total 

■ 517 

1,253 

2,793 

1.908 

11.558 

17,512 


Conventional hydro 

1,368 

6,267 

3,570 

110 

3,029 

12,976 


Pumped storage 

235 

400 

135 

50 

1,470 

2.055 


Fossil steam 

- 

653 

6B3 

646 

5,507 

7.489 

Pacific 

Nuclear steam 

- 

2,120 

2,200 

1.198 

18.616 

24,134 


1C 

- 

- 

_ 

_ 




Comb, turbine 

500 

694 

56 

958 

2,550 

4,258 


Total 

2,103 

10.134 

6,644 

2,962 

31.172 

50.912 


Conventional hydro 

1.438 

6.365 

3,850 

620 

4,949 

15,784 


Pumped storage 

485 

2.040 

635 

368 

7,578 

10,621 


Fossil steam 

16,509 

16,425 

14,078 

18,319 

78,636 

1 27.458 

Total Contiguous U.S. 

Nuclear steam 

6.530 

8,261 

9,777 

9,761 

113,315 

141,114 


1C 

28 

39 

7 

32 

356 

434 


Comb, turbine 

1,607 

2.099 

410 

1,976 

6,299 

10,784 


Total 

26,597 

35.229 

28.757 

31,076 

211.133 

306,195 


Conventional hydro 

- 

_ 



35 

35 


Pumped storage 

- 

- 

_ 

_ ■ 




Fossil steam 

- 


_ 

141 

46 

1 87 

Alaska & Hawaii 

Nuclear steam 

_ 

_ 

_ 





1C 

12 

9 

15 

14 

49 

87 


Comb, turbine 

- 

105 

85 

65 


255 


Total 

12 

114 

100 

220 

130 

564 


Conventional hydro 

- 

— 

_ 





Pumped storage 

- 

_ 






Fossil steam 

_ 

_ 





Puerto Rico 

Nuclear staam 


_ 






1C 

- 

- 


_ 




Comb, turbine 

200 

_ 






Total 

200 


— 

- 

- 1 

- 


includes 32 Mm solid waste in 1978. Includes Geothermal: 1978, 161 Mw. 1979. 245 Mw. 1981 & beyond, 1.204 Mw. 

SOURCE; 1978 Statiitical Report. Electrical World, March 15, 1978, p. 92 


5-19 




TABLE 5-12. Future Generating Capacity 

Generating capacity net additions, Mw (Based on date of commercial operation) 


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5-20 


I 


(1) Estimated hydro capacity all assigned to conventional after 1985. except for the Storm King Project. 
SOURCE: Federal Power Commission, as Reported in Electrical World, September 15, 1977, p. 55 




TABLE 5-13. Estimated Annual Added Capacity in the United States 



AVERAGE FUTURE 
ADDITIONAL INSTALLED 
GENERATING CAPACITY 

AVERAGE 

NUMBER OF PLANTS 
ANNUALLY 

Nuclear Power Plants 

14,167 MW 

14 

Fossil Fuel Power Plants 

14,365 MW 

36 

Hydroelectric Power Plants 

1,493 MW 

15 

Gas Turbine Power Plants 

1.493 MW 

15 


The estimated annually added capacity in OECD Europe is pre- 
sented in Table 5-17. 

5. 5. 2. 3 Japan . The expected energy production in Japan according to 
forecasts prepared by the OECD is as presented in Table 5-18. 

Using the same assumptions as for the other areas, we can 
estimate the annually added capacity in Japan as described in 
Table 5-19. 

5. 5. 2.4 The Developing World . The projected electric energy con- 
sumption in the developing world, including the OPEC countries, is 
relatively insignificant compared to the industrialized world. It 
was therefore decided to discuss the electric energy future of these 
nations as a group. 

The forecast of electric energy production is based upon the 
results obtained by the Workshop on Alternative Energy Strategies 
(WAES) sponsored by the Massachusetts Institute of Technology 
(Reference 6 ) . The forecast presented in the next pages represents 
the electric energy future of the countries listed in Table 5-20. 

A number of assumptions were made with respect to the economic 
development in developing countries, and several potential scenarios 
were assumed. These assumptions and scenarios are presented as 
Tables 5-21 and 5-22. 

The forecasted electric energy production, which was calculated 
in terms of millions of barrels per day of oil equivalents, is 
presented as Table 5-23. The average annual increase in installed 
capacity per year in MW is presented as Table 5-24. 


5-21 




TABLE 5-14. Generation Added or Planned in Canada 


PROVINCE 

AND 

PRIME MOVER 

MW 

ADDED 

1977 

MW PLANNED FOR 
1978 1979 1980 

AFTER 

1981 

TOTAL 

MW 

PLANNED 

I Alberta I 

Fossil steam 

165 

165 

- 

- 

1,122 

1,287 

1C 

1 

10 

2 

3 

- 

15 

Comb, turbine 

3 

- 

- 

- 

- 

- 

Total 

169 

175 

2 

3 

1,122 

1,302 

British Columbia 

Hydro 

441 

- 

350 

1,258 

1,800 

3,408 

Comb, turbine 

- 

54 

- 

- 

- 

54 

Total 

441 

54 

350 

1,258 

1,800 

3,462 

Manitoba 

Hydro 

224 

476 

420 

- 

1,080 

1,976 

New Brunswick 

Hydro 

- 

- 

220 

- 

- 

220 

Fossil steam 

335 

- 

200 

- 

- 

200 

Nuclear 

- 

- 

- 

630 

- 

630 

Total 

335 

- 

420 

630 

- 

1,050 

Newfoundland- Labrador & P.E.I 
Comb, turbine — 

- 

- 

25 

- 

25 

Nova Scotia 

Hydro 

- 

200 

- 

- 

- 

200 

Fossil steam 

150 

- 

- 

150 

450 

600 

Comb, turbine 

120 


- 

- 

- 

- 

Total 

270 

200 

- 

150 

450 

800 

Ontario 

Hydro 

107 

14 

- 

- 

- 

14 

Fossil steam 

1,177 

1,263 

82 

411 

3,343 

5,099 

Nuclear 

1,464 

537 

642 

693 

8,702 

10,574 

Comb, turbine 

40 

19 

- 

23 

141 

183 

Total 

2,788 

1,833 

724 

1,127 

12,186 

15,870 

Quebec 

Hydro 

175 

579 

- 

1,959 

10,824 

13,362 

Nuclear 

- 

- 

637 

- 

- 

637 

1C 

12 

18 

- 

- 

43 

61 

Comb, turbine 

106 

- 

240 

202 

1.136 

1,578 

Total 

295 

597 

877 

2,161 

12,003 

15,638 

Saskatchewan 

Hydro 

- 

- 

- 

- 

90 

90 

Fossil steam 

280 

- 

280 

- 

280 

560 

Total 

280 

- 

260 

- 

370 

650 

1 Total Canada 

Hydro 

947 

1,269 

990 

3,217 

13,794 

19,270 

Fossil steam 

2,107 

1,428 

662 

561 

5,195 

7,746 

Nuclear 

1,464 

537 

1,279 

1,323 

8,702 

11,841 

1C 

13 

28 

2 

3 

43 

76 

Comb, turbine 

271 

73 

240 

250 

1,277 

1.840 

Total 

4,802 

3,335 

3,073 

5,354 

29.011 

40.773 


SOURCE: Electrical World, August 15, 1977 


5-22 


I 




TABLE 5-15. Estimated Annual Additional Capacity in Canada 



AVERAGE ADDITIONAL 
CAPACITY ANNUALLY 

AVERAGE 
NO. OF PLANTS 

Hydroelectric 

2,410 

24 

Fossil Steam 

1,164 

3 

Nuclear 

1,150 

1 

Combustion Turbine 

208 

2 


'Average utilization hrs per plant. 


The total annual average installed capacity requirements per 
year in the entire developing world between 1972 and 2000 is less 
than half that expected for the U.S. in the same time provided even 
under the most optimistic assumptions of future growth. The ex- 
pected annually added capacity in all these countries, based on an 
average of the scenarios to the periods between 1985 and 2000, will 
be limited, and extensive ferry between the various projects spread 
around the world will be extensive. The annually added capacity 
for this segment is presented as Table 5-25. 

5. 5. 2. 5 USSR . The USSR is a major producer and consumer of elec- 
tric energy. No forecasts or plans for energy expansion are avail- 
able for this country. It is expected that the rapid growth in 
electric generating capacity experienced in the period from 1970 to 
1975 will continue in the near and distant future to support the 
expanding industrialization of the country. Statistics on the 
expansion of the generating capacity between 1970 and 1975 and the 
average growth per year are presented as Table 5-26. In Table 
5-27, the expected annually added capacity leading to generating 
plant construction activity in the USSR, is presented. 

5. 5. 2. 6 Power Generating Plant Market Summary . The annual added 
capacities identified in this section for different areas around 
the world are summarized in Table 5-28, together with estimates 
of the number of each type of power plant that these additions 
represent. 


5-23 


CR5G-NAL PAGE \l 
OF POOR QUALITY 




TABLE 5-76. Electric Energy Production in OECD Europe 



1974 

1980 

AV. 

ANNUAL 

CHANGE 

1974-1980 

1985 

REFERENCE CASE 

AV. 

ANNUAL 

CHANGE 

1974-1985 

Nuclear 

(1) 

34.0 

(2) 

5542 

(1) 

246.0 

(2) 

40,101 

(2) 

4937 

(1) 

525.0 

(2) 

85,582 

(21 

7580 

Hydro and 
Geothermal 

120.2 

19,602 

139.0 

22,667 

438 

145.0 

23,646 

163 

Steam Fossil 
and Other 

895.8 

146,609 

958.0 

160,633 

2008 

1156.0 

188,519 

4648 

Other 

Electric 

1050.0 

171,753 

1343.0 

223.401 
1 


1826.0 

297,747 



( 1 ) Terawatt hours per year 

(2) Megawan generating capacity required assuming an average load factor of 70% 


SOURCE: Energy Prospects for the OECD, Paris, 1977, 


TABLE 5-17. Estimated Annual Market in OECD Europe for the HLA 



AVERAGE ANNUAL 
ADDITIONAL 
CAPACITY (MW1 

AVERAGE 
NO. OF PLANTS 

Nuclear 

7,580 

8 

Hydro and Geothermal 

163 

2 

Steam and Fossil Fuel 

4,648 

12 







TABLE 5-18. Expected Energy Production in Japan 



1974 

1980 

AV. 

ANNUAL 

INCREASE 

1974-1980 

1985 

AV. 

ANNUAL 

INCREASE 

1980-1985 


(1) 

(2) 

(1) 

(2) 

(2) 

(11 

(2) 

(2) 

Nuclear 

19.7 

3212 

86.0 

14,024 

1544 

199.0 

32,543 

3086 

Hydro and 









Geothermal 

84.8 

13,829 

89.0 

14,514 

98 

117,0 

19,080 

761 

Steam Fossil 









and Other 

354.5 

57,811 

488.0 

78,583 

3110 

606.0 

98,826 

3207 

Other 









Electric 

459.0 

74,853 

663.0 

108,121 


922.0 

15,035 



(1 ) Terawatt hours per year 

(2) Megawatt generating capacity required assuming an average load factor of 70% 


SOURCE: Energy Prospects for the OECD, Paris, 1977. 


TABLE 5-19. Estimated Annual Market in Japan for the HLA 



AVERAGE ANNUAL 
ADDITIONAL 
CAPACITY (MWI 

AVERAGE 
NO. OF PLANTS 

Nuclear 

3,086 

3 

Hydro and Geothermal 

761 

7 

Steam and Fossil Fuel 

3,207 

8 


5-25 




















TABLE 5-20. Developing Countries in Europe 


A. OPEC Countries 

Algeria Iran 

Ecuador Iraq 

Gabon Kuwait 

Indonesia 


Libya 

Nigeria 

Qatar 


Saudi Arabia 

United Arab Emirates 

Venezuela 


B. Non-OPEC Developing Countries 

i) Lower-Income Countries 

(annual per capita income under $200 [1972 U.S. dollars] I 


Sout h 

Afghanistan 

Bangladesh 

Burma 

India 

Nepal 

Pakistan 

Sri Lanka 


Burundi 
Central African 
Republic 
Chad 
Dahomey 
Ethiopia 
Guinea 


Kenya 

Madagascar 

Malawi 

Mali 

Niger 

Rwanda 

Sierra Leone 


Somalia 

Sudan 

Tanzania 

Togo 

Uganda 

Upper Volta 

Zaire 


ii) Middle-Income Countries 

(annual per capita income over $200 [1972 U.S. dollars] ) 



Middle -Income 
Sub-Sahara Africa 

Caribbean, Central 

East Asia 

and West Asia 

and South America^ 

Fiji 

Angola 

Argentina 

Hong Kong 

Bahrein 

Barbados 

Korea (Soutn) 

Cameroon 

Bolivia 

Malaysis 

Congo P.R. 

Brazil 

Papua New Guinea 

Cyprus 

Chile 

Philippines 

Egypt 

Columbia 

Singapore 

Ghana 

Costa Rica 

Taiwan 

Israel 

Dominican Republic 

Thiland 

Ivory Coast 

El Salvador 


Jordan 

Guatemala 


Lebanon 

Guyana 


Liberia 

Haiti 


Mauritania 

Honduras 


Morocco 

Jamaica 


Mozambique 

Mexico 


Oman 

Nicaragua 


Rhodesia 

Panama 


Senegal 

Paraguay 


Syria 

Trinidad and Tobago 


Tunisia 

Uruguay 


Turkey 
Yemen A.R. 
Zambia 



SOURCE: Energy, Global Prospects 1985-2000 (Reference 10). 


5-26 





TABLE 5-21. WAES Scenario Assumptions 


CASE 

ECONOMIC 

GROWTH 

ENERGY 

PRICE 

PRINCIPAL 

REPLACEMENT 

FUEL 

1976-1985 




c 

High 


_ 

D 

Low 


- 

1985-2000 

■H 





$11.50-$17.25 

Coal 

02 


$11.50-$17.25 

Nuclear 

D-7 


$11.50 

Coal 

D-8 


$11.50 

Nuclear 


SOURCE: Reference 10 


TABLE 5-22. Real GNP Growth Rate Assumptions: 1972-2000 


PERIOD ECONOMIC GROWTH 
WAES CASE 

1960-72 

1972-76 

1976-1985 

1985-2000 

HIGH 

C 

LOW 

D 

HIGH 

C-1^ 

LOW 

D-7,8 

Non-OPEC Developing Countries 

5.6 

5.1 

6.1 

4.1 

4.6 

3.6 

1) Lower- Income Countries 

3.7 

2.3 

4.4 

2.8 

3.1 

2.5 

II) Middle-income Countries 

6.2 

5.9 

6.6 

4.5 

4.9 

3.9 

OPEC 

7.2 

12.5t 

7.2 

5.5 

6.5 

4.3 

Developed Economies* (OECD) 

4.9 

2.0 

4.9 

3.1 

3.7 

2.5 


SOURCE: Reference 10 


*As derived by WAES analyses of individual countries, 
t Preliminary estimate. 


5-27 
































TABLE 5-24. Average Additional Electric Capacity 



AVERAGE IN- 
STALLED CAPACITY 
PER YEAR 1975-1985 

AVERAGE INSTALLED CAPACITY 
PER YEAR 1985-2000 


CASE C 

CASE D 

CASE C-1 

CASE C-2 

CASE D-7 

CASE D-8 

Fossil Fuels 

5,141 

3,572 

7,005 

2,343 

4,348 

625 

Hydroelectric 

2,351 

2,619 

6,458 

4,531 

2,995 

1,432 

Nuclear 

3,452 

1,547 

8,568 

21,016 

6,693 

15,547 

Total 

10.744 

7,738 

22,031 

27,890 

14,036 

17,604 


Conversion factor used: 2.4 MBOE ^ 100 GW installed electric generating capacity 


TABLE 5-25. Estimated Annual Additional Capacity in Developing Countries 



AVERAGE ANNUAL 
CAPACITY INSTALLED 

AVERAGE 
NO. OF PLANTS 

Fossil Fuels 

3,579 

9 

Hydroelectric 

3,854 

38 

Nuclear 

12,956 

13 


OP POOR 


page irj 

QijALtTY 


5-29 































TABLE 5-26. Installed Electric Generating Capacity in USSR 


U.S.S.R. 

1970 

1971 

1972 

1973 

1974 

1975 

AVERAGE INSTALLED 
1970 - 1975 

Total 

166,150 

175,365 

186,239 

195,560 

CM 

xti 

O 

CM 

217,484 

8,557 

Hydro 

36,368 

33,448 

34,846 

35,320 

36,978 

40,515 

1,524 

Nuclear 

1,591 

2,031 

2,621 

3,509 

4,500 

5,600 

668 

Steam Fossil 
and Other 

133,191 

139,086 

148,772 

156,731 

163,964 

171,368 

6,363 


SOURCE: United States 


TABLE 5-27. Estimated Market for HLA in the USSR 



AVERAGE ANNUAL 
ADDITION TO 
GENERATING CAPACITY 

AVERAGE 
NUMBER OF 
PLANTS 

Hydro Plants 

1,524 

15 

Nuclear Plants 

668 

1 

Steam Fossil Fuel Plants 

6,363 

16 


5-30 















TABLE 5-28. Total Annual Potential Market — Power Generating Plant Construction 



5 

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E 

io 

D 



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o 


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E 

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5-31 



5.6 The Market for the Support of the 
Construction of Pipelines 

Every year between 25,000 and 26,000 miles of new pipelines 
are laid. Of this total, a relatively small portion is laid in 
undeveloped or remote regions that cause logistical difficulties to 
warrant the use of an HLA. 

At the present time there is one major planned pipeline con- 
struction project for which the HLA concept would be extremely 
valuable. This project is the Alcan-Foothills pipeline extending 
2,754 miles from Prudhoe Bay on the North Slope of Alaska, through 
Alaska and along the Alaska-Canada highway through the Yukon Terri- 
tory and British Columbia, and through Alberta to the United States. 
Data provided by Foothills Pipeline Company, Ltd., one of the mem- 
bers of the consortium formed to construct the planned pipeline, 
was used for the case study of pipeline construction. At the 
present time, construction of this pipeline is scheduled to start 
in 1979, and completion is planned for 1983. A map of this pipe- 
line is presented as Figure 5-2. 

Another major pipeline project, for which the HLA could be 
useful is the pipeline planned by Polar Gas of Toronto Canada. The 
Polar Gas pipeline will extend from the Canadian Islands in the 
Arctic Ocean through the Northwest Territories through Manitoba and 
to Ontario for connection with the Trans Canada Pipeline system. 

This pipeline is at the present time only in the preliminary 
planning stage, and construction will not commence until the early 
1980' s. Total construction time is estimated to be three years. 

With the exception of these two pipeline projects, there are 
no other pipeline projects planned at this stage that would be of 
interest from a HLA market point of view. However, oil and gas are 
increasingly explored and discovered in inaccessible and remote 
areas. New pipeline projects to bring these new resources to 
market are expected to be constructed in the future. The pipelines 
completed in 1977 and 1978 are presented as Table 5-29. Of these 
pipelines, it is expected that only the large diameter lines (i.e., 
above 22 inches diameter) that require large and heavy special 
equipment would warrant the use of an HLA. The market opportun- 
ities are presented in Table 5-30. In the preparation of this 
table it was assumed that future pipeline construction volume would 
be similar to the average of the years 1977-1978. These estimates 
were made on the assumption by Booz, Allen that between 5% and 10% 
of the total mileage would be in undeveloped and remote regions. 




5-32 




FIGURE 5-2. Alcan Pipeline Project and Connecting Pipelines 


5-33 



TAB LE 5-29. Non-Communist Pipeline Construction, 1977-78* 


AREA 

4.10 IN. 
DIAMETER 

12.20 IN. 
DIAMETER 

22.30 IN. 
DIAMETER 

OVER 30 IN. 
DIAMETER 

TOTAL 

MILEAGE 

UNITED STATES 

1977 

2,395 

3,189 

1,126 

214 

6,924 

1978 

2,541 

2,134 

1,906 

468 

7,049 

Change 

+ 146 

-1,055 

+ 780 

+ 14 

+ 125 

CANADA 

1977 

1,374 

3,251 

280 

137 

5.042 

1978 

762 

179 

594 

140 

1.675 

Change 

- 612 

- 3,072 

+ 314 

+ 3 

- 3,367 

EUROPE 

1977 

731 

597 

642 

574 

2,544 

1978 

824 

962 

1,196 

806 

3.788 

Change 

+ 93 

+ 365 

+ 554 

+ 232 

1,244 

LATIN AMERICA 

1977 

933 

1.286 

1,166 

209 

3,594 

1978 

1,059 

1,377 

1,274 

294 

4,004 

Change 

+ 126 

+ 91 

+ 108 

+ 85 

+ 410 

MIDDLE EAST 

1977 

406 

1,134 

762 

1,506 

3,808 

1978 

418 

1,266 

1,170 

1,941 

4,795 

Change 

+ 12 

+ 132 

+ 408 

+ 435 

+ 987 

AFRICA 

1977 

125 

1,082 

556 

1.016 

2,779 

1978 

141 

1,091 

874 

1,067 

3,173 

Change 

+ 16 

+ 9 

+ 318 

+ 51 

+ 394 

FAR EAST 

1977 

62 

71 

244 

116 

493 

1978 

118 

135 

416 

59 

728 

Change 

+ 56 

+ 64 

+ 172 

- 57 

+ 235 

TOTAL 

1977 

6.026 

10,610 

4.776 

3,772 

25,184 

1978 

5,863 

7,144 

7.430 

4,775 

25.212 

Change 

- 163 

-3,466 

+ 2,654 

+1,003 

00 

CM 

+ 


‘Excludes utility-distribution and water lines. 


SOURCE: OH and Gas Journal. January 23, 1978, p. 16 


I 


5-34 



TABLE 5-30. Market Opportunities for Heavy Lift Services 



5-35 


ORI68NAL PAGE IS 
OF POOR QlJALiTY 




5.7 The Market for the Support of the High Rise 

Construction Industry 

This industry has opportunities for the use of heavy lift 
aerial vehicles in: 

. Roof emplacement of air conditioning, heating, and refri- 
geration units 

. Roof emplacement of window washing units, and 

. Dismantling and lowering of construction cranes. 

The more stories a high rise building has, the more useful the HLA 
becomes . 

5.7.1 The Market for the Emplacement of Air Conditioning/Heating 
Refrigeration Units 

Data on the foreign refrigeration unit market are not avail- 
able, and neither is information on the methods used for placing 
these units in buildings in countries other than the United States. 
The discussion of this market is therefore limited to the U.S. 
market place. 

In the U.S. market there are two types of airconditioning/ 
ventilation units that require rigging either to place them in 
utility rooms or on top of the building: 

. Condenser type units 

Evaporator type cooling towers. 

5. 7. 1.1 Condenser Type Units . According to a representative of 
Carrier Corporation, the largest manufacturer of airconditioning 
and refrigeration units in the United States, Carrier's annual 
sales of airconditioning units are approximately $1 billion, of 
which $500 million is for commercial units. The major portion of 
these commercial units are placed in utility rooms rather than on 
the roof. The total sales of units that are rigged and placed on 
the roof account for approximately $10 million per year. The cost 
of each unit ranges from $3000 - $4000 for the small units to 
$150,000 for the largest units. The average rooftop unit costs 
approximately $20,000, and weighs on an average of 15,000 pounds. 

The largest units weigh 30,000 - 40,000 pounds. Anything larger is 
impractical to ship in one piece, and is knocked down, shipped in 
pieces, and assembled at the site. 

The approximate number of rooftop units sold by Carrier is 
estimated to be 500 per year. The representative estimated Carrier's 
market share to be 30% to 40%. The total market for compressor 
type airconditioning units to be placed on the rooftops of buildings 
can be estimated to be between 1250 and 1700 units per year. 


5-36 



5. 7. 1.2 Cooling Towers/Evaporators . These units are almost ex- 
clusively placed on top of buildings or on adjacent open lots. A 
representative of Baltimore Aircoil Company, one of the major manu- 
facturers of this type of equipment in the United States, estimated 
that the total market for cooling towers/evaporators ranges between 
3000 to 3500 units per year. These units, which weigh up to 67,000 
pounds, are generally shipped knocked down due to the limitations 
of the existing transportation infrastructure and the necessity to 
rig and lift the units at the site. Each of these towers requires 
more than one lift ranging in weight from as low as 500 pounds up 
to 18,000 pounds for the largest component. 

The total market for these units to be emplaced on rooftops is 
as summarized in Table 5-31. 

It should be noted that one Sikorsky S-64E Skycrane is operat- 
ing an average of 375 hours a year serving this market. The average 
ferry time is 8 hours for each job, and the time of actual operation 
approximately one-half hour to emplace 20-30 units each weighing 
15,000 pounds. The helicopter thus averages in excess of 40 mis- 
sions each emplacing an average of 25 units for a total of 1000 
units per year. This is a relatively large proportion of the total 
market. 


TABLE 5-31. Total Market for Support of Construction 


INDUSTRY 

NUMBER OF UNITS/LIFTS 

AVERAGE WEIGHT 

AIR CONDITION/HEAT/VENTILATION UNITS 

LOW 

HIGH 

COMPRESSION TYPE 

1250 

1700 

15,000 lbs. 

EVAPORATION/COOLING TOWER TYPE 

3000 

3500 

15,000 - 60,000 lbs. 

WINDOW WASHING UNITS 

5000 

6000 

15,000 lbs. 

DISMANTLING CONSTRUCTION CRANES 

250 

300 

50,000 lbs. 


5.7.2 The Market for Emplacement of Window Washing Units 

A representative of Tishman Construction indicated this to be 
a significant market for heavy lift, all high rise office and 
apartment buildings have to have these units installed on the roof, 
and they are very difficult to install by any conventional means. 
The anticipated opportunities are approximately 5000 to 6000 units 
per year, each weighing around 15,000 pounds. 


5-37 











5.7.3 Dismantling Construction Cranes 


Again, the Tishman representative estimated the total annual 
opportunities for crane dismantling to be about 250 to 300 lifts, 
each divisible into units of about 25 tons each. 


5 . 8 The Market for the Support of Remote 
Drilling Installations and Operations 

Statistical sources do not indicate the number of wells drilled 
in remote locations. To obtain an indication of the magnitude of 
this market,, the world's largest owner and operator of remote 
drilling rigs, Parker Drilling Company of Tulsa, Oklahoma, was 
contacted. A representative of Parker Drilling Company said that 
his company currently had 35 helicopter rigs operating worldwide, 
and he estimated that his 15-20 competitors worldwide together had 
an equal number of rigs. The average rig can drill 3 to 4 wells 
per year. It should be noted, however, that the operators move 
their drilling rigs from helicopter operations to conventional 
operations. In a normal year a total of 100 wells are drilled 
worldwide where the helicopter is required for transportation. 

These operations are relatively evenly distributed among three 
world regions: 

. Latin America 

Asia, primarily Indonesia, New Guinea and Malaysia 

. Alaska, and Northern and Arctic Canada 

as summarized in Table 5-32. 


TABLE 5-32. Market for Retransportation of Support of Services 
of Remote Drilling Sites 


AREA 

NO. OF WELLS DRILLED 
IN REMOTE LOCATIONS 

LATIN AMERICA 

33 

ASIA 

33 

NORTH AMERICA 

34 

TOTAL 

100 


The representative from Parker Drilling expected this situation 
to remain relatively stable in the near future. 


\ 


5-38 




5.9 The Market in the Logging Industry 

The discussion of the market for logging is divided into a 
discussion of the market in the United States and worldwide. 

5.9.1 United States 

The United States is the world's leading producer of forest 
products. In 1976, the United States accounted for 13.2% of the 
total worldwide production of roundwood* (Reference 7) . 

In 1970, a total of 754 million acres of the 2.3 billion acres 
of land in the United States was forestland. Of this, 500 million 
acres are commercial timberland that are available and suitable for 
growing continuous crops of timber and raw materials for other 
forest products. Of these 500 million acres, the federal government 
is fully controlling 107 million acres. National forest land 
accounts for 92 million acres or 18% of the total forest lands in 
the United States. These areas are generally located in higher 
elevations with low quality woods, which are relatively inaccessible 
and costly to harvest. Nevertheless a substantial portion of the 
timber inventory of the United States is located in these national 
forests. The area of commercial timberland in the United States in 
1970 is presented as Table 5-33, and the areas of various forest 
types is presented as Table 5-34. Projections prepared by the 
Forest Service, U.S. Department of Agriculture indicates that the 
available commercial timberland will decrease over the period from 
1970 to 2020 by a total of 10 million acres per decade or a total 
of 5% over the 50 year period. The projections by regions are 
presented as Tables 5-35 and 5-36, and by ownership as Tables 
5-37 and 5-38. The regional breakdown presented in the statistics 
are presented as Figure 5-3. 

The total supplies of roundwoods (i.e., boxer softwoods and 
hardwoods) is expected to increase between 1970 and 1980 from 12.2 
billion cu. ft. to 15.3 million cu. ft. By year 2020 the total 
supply is expected to be 19 billion cu. ft. or 57% above the 1970 
level (Table 5-35) . 


Roundwood is defined by "The FAO, United Nations" as wood in the rough. 

Wood in its natural state as felled, or otherwise harvested, with or without 
bark, round, split, roughly squared or other forms (e.g., roots, stumps, 
burls, etc.). It may also be impregnated (e.g., telegraph poles) or roughly 
shaped or pointed. It comprises all wood obtained from removals, i.e. , the 
quantities removed from forests and from trees outside the forest, including 
wood recovered from natural, felling and logging losses, during the period - 
calendar year or forest year. Commodities included are sawlogs and veneer 
logs, pitprops, pulpwood, other industrial roundwood and fuelwood. 


5-39 





TABLE 5-34. Areas of Commercial Timberland in the Unites States (by forest 
type groups, 1970) 


Type group 

— 
Total area 

Proportion of total 
Percent 

EASTERN TYPE GROUPS 




Thousand acres 


Softwood types: 



Loblolly'Shortleaf pine 

52.832 

10.7 

Longleaf-slash pine 

18,315 

3.7 

Spruce-fir 

18,913 

3.8 

White-red-jack pine 

12,168 

2.5 

Total 

102,228 

20.7 

Hardwood types: 



Oak* hickory 

111,861 

22.6 

Oak-pine 

35,028 

7.1 

Oak-gum-cypress 

30.630 

6.2 

Maple-beech'birch 

31,140 

6.3 

Eim-ash-cottonwood 

24,728 

5.0 

Aspervbirch 

20,484 

4.1 

Total 

253,871 

51.3 

Nonstocked 

14,343 

2.9 

Total East 

370,442 

74.9 

WESTERN TYPE GROUPS 
Softwood types: 



Douglas-fir 

30,788 

6.2 

Ponderosa pine 

27,964 

5.6 

Fir-spruce 

17,830 

3.6 

Lodgepole pine 

j 13,235 

2.7 

Hemlock-Sitka spruce 

10,819 

2.2 

Larch 

2,743 

.5 

White pine 

829 

.2 

Redwood 

803 

.2 

Total 

105,011 

21.2 

Hardwood types 

12,818 

2.6 

Nonstocked 

6,379 

1.3 

Total west 

124,208 

25.1 

1 

All groups 

494,650* 

100.0 


*Not including 5 million acres of "unregulated" commercial timberlands on National 
Forests in the Rocky Mountain States. 

SOURCE: The Outlook for Timber in the Unites States Forest Service, U.S. Department of Agriculture. July 1974. 


5-41 






















TABLE 5-35. Supplies of Roundwood Products from U.S. Forests {by section 

and species group, 1952, 1962, and 1970, with projections to 2020) 
(cubic feet, millions) 


SECTION 




PROJECTIONS 

AND SPECIES GROUP 

1952 

1962 

1970 

1980 

1990 

2000 

2020 

North: 

Softwoods 

Hardwoods 

603 

1,378 

513 

1.299 

579 

1,409 

803 

2,428 

942 

3.165 

1,109 

3.845 

1,113 

3.799 

Total 

1.981 

1.812 

1,988 

3,231 

4,107 

4,954 

4.912 

South; 

Softwoods 

Hardwoods 

3,048 

1.935 

2,677 

1,606 

3.745 

1,668 

4,622 

2.651 

5.217 

3.009 

5,768 

3,327 

5.788 

3.416 

Total 

4.983 

4,283 

5.413 

7,273 

8,226 

9,095 

9,204 

Rocky Mountains: 
Softwoods 
Hardwoods 

495 

11 

684 

14 

852 

11 

1.044 

46 

1,139 

65 

1,275 

89 

1,231 

89 

Total 

506 

698 

863 

1,090 

1,204 

1,364 

1,320 

Pacific Coast: 
Softwoods 
Hardwoods 

3,239 

35 

3.324 

62 

3.805 

85 

3,642 

82 

3.376 

96 

3,332 

105 

3,491 

114 

Total 

3,274 

3.386 

3.890 

3,724 

3,472 

3,437 

3,605 

Total United States: 
Softwoods 
Hardwoods 

7,387 

3.356 

7.199 

2,980 

8,981 

3.173 

10,111 

5,207 

10,676 

6,334 

11,484 

7,365 

11.622 

7,418 

Total 

10.745 

10,179 

12.154 

15,318 

17.009 

18,849 

19,040 


SOURCE: Tr>e Outlook for Timber in the United States Forest Service, U.S. Department of Agriculture, July 1974 


5-42 


I 




TABLE 5-36. Supplies of Sawtimber Products from U.S. Forests (by section 
and species group, 1952, 1962, and 1970, with projections 
to 2020) (board feet, millions) 


SECTION 

AND SPECIES GROUP 

1952 

1962 

1970 

PROJECTIONS 

1980 

1990 

2000 

2020 

North: 

Softwoods 

Hardwoods 

Total 

South: 

Softwoods 

Hardwoods 

Total 

Rocky Mountains; 
Softwoods 
Hardwoods 

Total 

1.898 

4.300 

1,488 

4,430 

2,115 

6,083 

2.390 

7,648 

3,014 

9,997 

3,793 

12,139 

3.793 

11.994 

6,198 

5,918 

8,197 

10,038 

13,011 

15,932 

15,787 

m 

9,292 

6,139 

14,366 

5,914 

H 

20,882 

7,602 

23.836 

7,752 

23,919 

7,830 

19,027 

15,431 

20,280 

24,954 

28,484 

31,588 

31.749 

3,126 

15 

m 

■1 

Q 

5,648 

148 

5.915 

195 

5,511 

191 

3,141 

4,208 

5,286 

5,693 

5,796 

6.110 

5.702 

Pacific Coast: 
Softwoods 
Hardwoods 

Total 


22,540 

201 

25,182 

322 


21,323 

435 

20.647 

469 

20.722 

503 

22,561 

22,741 

25,504 

23,644 

21,758 

21,116 

21 ,225 

Total United States: 
Softwoods 
Hardwoods 

Total 

38,800 

12,127 

37,510 

10,788 

46,936 

12,331 

48,825 

15,505 

50,867 

18,182 

54.191 

20.556 

53.945 

20.518 

50,927 

■ 

48,298 

Bi 


69,049 

74,747 

74,463 


SOURCE: The Outlook for Timber in the United States Forest Service, U.S. Department of Agriculture, July 1974 


ORIGINAL PAGE IL 
OF POOR QUALITY 



































































I 

I 

I 


TABLE 5-37. Supplies of Roundwood Products from U.S. Forests (by owner 
class, and species group, 1952, 1962, and 1970, with projections 
to 2020) (cubic feet, millions) 


OWNER CLASS 
AND SPECIES GROUP 

1952 

1962 

1970 

PROJECTIONS 1 

1980 

1990 

2000 

2020 

National Forest: 
Softwoods 
Hardwoods 

Total 

836 

60 

1,606 

79 

1,926 

90 

2,309 

210 

2,427 

287 

2,547 

370 

2,551 

378 

898 

1,684 

2.016 

2,519 

2,714 

2,917 

2.929 

Other public: 

Softwoods 

Hardwoods 

Total 

Forest industry: 

Softwoods 

Hardwoods 

Total 

Farm & miscellaneous private: 
Softwoods 1 

Hardwoods | 

Total 

Total United States: 

Softwoods 

Hardwoods 

Total 

403 

125 

547 

125 

m 

812 

318 

943 

433 

1,089 

548 

1.142 

547 

528 

672 

834 

1,130 

1,376 

1,637 

1,689 

2,700 

486 

2,237 

597 

2,918 

512 

2.759 

619 

2,635 

725 

2,805 

836 

2,993 

902 

3,186 

2,834 

3,430 

3,378 

3,360 

3,641 

3,895 

H 

m 


4,230 

4,061 

4,670 

4,888 

m 

4,936 

5,592 

6,133 

4,989 

5,874 

8,291 

9,558 

10,654 

10,528 

7,387 

3,358 

7,199 

2,980 


H 

10,675 

6,334 

11,484 

7,365 

11,622 

7,418 

10,745 

10,179 

12,154 

15,318 

17,009 

18,849 

19,040 


SOURCE: The Outlook for Timber in the United States Forest Service, U.S. Department of Agriculture, July 1974 


5-44 

I 
















































































TABLE 5-38. Supplies of Sawtimber Products from U.S. Forests (by owner, class, 
and species group, 1952, 1962, and 1970, with projections to 2020) 
(board feet, millions) 


OWNER CLASS 
AND SPECIES GROUP 

1952 

1962 

1970 

1 PROJECTIONS 1 

1980 

1990 

2000 

2020 

National Forest: 
Sof tvvoods 
Harduvoods 

Total 

Other public: 
Softwoods 
Hardwoods 

Total 

Forest industry: 
Softwoods 
Hardwoods 

Total 

m 

10,402 

332 

Wm 

14.163 

634 

14.672 

910 

15.228 

1,193 

14,812 

1,194 

5.781 

10.734 

12,906 

14.797 

15.582 

16,421 

16.006 

2.323 

365 

3,348 

339 


m 

5.140 

1.273 

5,790 

1,679 

5,907 

1,666 

2.688 

3.687 

4.733 

5.473 

6,413 

7.469 

7.573 


12.964 

1,724 

m 

14.001 

1.967 

m 

m 

13,865 

2.615 

17.575 

14.688 

18.126 

15.968 

15,109 

15,777 

16.480 

Farm & miscellaneous private: 
Softwoods 
Hardwoods 

Total 

14.910 

9.973 

10.796 

8,393 

13.801 

9.701 


IB 

19,851 

15,228 

19,360 

16,043 

24.883 

19,189 

23,502 

28.093 

31,944 

35.079 

34,403 

Total United States: 
Softwoods 
Hardwoods 

38.800 

12,127 

37.510 

10.788 

46.936 

12,331 

48325 

15.505 

50367 

18.182 


53.945 

20,518 

Total 

50,927 

48.298 

59,267 

64.330 

69.049 

74,747 

74,463 


SOURCE: The Outlook for Timber in the United States Forest Service, U.S. Department of Agriculture, July 1974 




A 


5-45 











































































FIGURE 5-3. Sections and Regions of the United States 







Of primary interest for the HLA is the supplies of sawtimber. 
Sawtiraber is defined by the Forest Service as follows: 

. Sawtimber trees . Live trees of commercial species con- 
taining at least one 12-foot saw log or two noncontiguous 
8-foot logs, and meeting regional specifications for 
freedom from defect. Softwood trees must be at least 9.0 
inches in diameter breast height, except in California, 
Oregon, Washington, and coastal Alaska where the minimum 
diameter is 11.0 inches. Hardwood trees must be at least 
11.0 inches in diameter in all States. 

These logs are the ones that present the most likely market 
for HLA logging applications. Projections of sawtimber production 
presented in Table 5-36 indicates that sawtimber production is 
expected to increase from 59,267 million board feet (4,. 938 million 
cu. feet) to 64,300 million board feet (5,. 360 million cu . ft.), an 
increase of 13.6%. By the year 2020, sawtimber production is 
expected to be only 25.6% above the 1970 level, versus 57% for 
total forest products production. The sawtimber share of total 
forest product production is therefore expected to decrease from 
40% of the total production in 1970 to only 33% in the year 2020. 

5*9.2 The Foreign Situation 

Most of the potential forest areas in the world have not been 
surveyed. The total world forests have been estimated at 9,172 
million acres on a total of 28% of the total world land area. A 
large portion of these forest areas are not available for harvesting 
due to inaccessibility, reservation for other uses, or productivity 
too low to warrant commercial exploitation. Still a total of 5,636 
million acres are available for forest product production {Table 
5-39. 

The total growing stock in the world is presented as Table 
5-40. According to this table, the major forest products resources 
in the world are located in Latin America and U.S.S.R. The avail- 
ability of resources does not necessarily correlate with the growing 
stock available. Factors other than resource availability like the 
tree species and quality of timber, physical and economic accessi- 
bility, and institutional and political restrictions affect the 
harvest and processing of lumber. As is indicated in Table 5-41 
there is virtually no correlation between production and the avail- 
ability of growing stock. As can be seen from Table 5-41, 46% of 
total world production was derived from the U.S. Canada, Europe, 
and USSR, while these countries controlled merely 42.5% of the 
growing stock and only 43% of the available forest land. 

^*2.1 Canada . Forest production and timber harvesting in Canada 
is important with respect to the HLA usage, because the environ- 
mental and economic conditions and the methods by which timber is 


5-47 

ORIGINAL PAGE IS 
OF POOR QUALITY 




FOREST LAND FOREST LAND 

AVAILABLE 

TOTAL I I FOR WOOD 

AREA LAND AREA TOTAL SOFTWOOD HARDWOOD PRODUCTION 


5-48 




TABLE 5-40. Forest Growing Stock in the World (by area and species group) 
(cubic feet, billions) 


AREA 

TOTAL 

SOFTWOODS 

HARDWOODS 

North America 

2,083 

1,395 

689 

Latin America 

4,340 

99 

4,241 

Europe 

473 

290 

184 

Af r ica 

1,232 

11 

1,222 

Asia (except Japan and U.S.S.R.) 

1,444 

212 

1,232 

Japan 

67 

35 

32 

U.S.S.R. 

2,807 

2,345 

463 

Pacific area 

177 

11 

166 

World 

12,623 

4,396 

8,227 


SOURCE: Food and Agriculture Organization of the United Nations. Supply of wood 
materials for housing. World Consultation on the Use of Wood Housing, Secretariat Pap., 
Sect. 2. 1971. 


harvested in Canada is in many ways very similar to the situation 
in the United States. As indicated in Table 5-42, the total forest 
land in Canada equals 796 million acres, of which 588 million acres 
are available for harvesting. An inventory of Canadian timber 
stock in 1968 indicated an availability of 503 billion cubic feet 
of softwood and 127 billion cu. ft. of hardwood (see Table 5-43). 

A major portion of the timber available for harvest in Canada 
is located in the undeveloped and remote northern regions of Canada 
where inaccessibility due to lack of roads and high development 
costs has severely limited the commercial exploitation of the re- 
serves. The total cut in 1970 of 4.3 billion cu. ft. is well below 
the total allowable cut of 10.7 billion cu. ft. as indicated in 
Table 5-44. A forecast of expected production of Canadian timber 
up to the year 2000 is presented as Table 5-45. 

5. 9. 2. 2 Europe . Forest production in Europe is dominated by 
Finland, France, West Germany, and Sweden. In 1976 these four 
countries accounted for a total of 48.3% of the total European 
production. The production methods in these countries are highly 
mechanized due to the high costs of labor. This combined with 
environmental concerns may create a good basis for the acceptance 
of the HLA in the European forest industry. The existence of such 
circumstances is clearly indicated by the following quotation from 
a report of the timber committee of the Economic Commission for 
Europe (Reference 8): 




TABLE 5-41. World Production of Roundwood Timber (cubic feet, millions) 




TABLE 5-42. Forest Land Area in Canada (by Province, 1967) (acres, thousands) 





5-51 







TABLE 5-43. Merchantable Timber in Canada on Inventoried Nonreserved 
Forest Land (by Province and by Softwoods and Hardwoods, 
1968) (cubic feet, millions) 


PROVINCE 

TOTAL 

SOFTWOODS 

HARDWOODS 

« » 

British Columbia 

268,635 

261,313 

7,322 

Prairie Provinces 

89,331 

55,923 

33,408 

Ontario 

111,423 

66,593 

44,830 

Quebec 

130,397 

96.954 

33.443 

Atlantic Provinces 

29,612 

22.100 

7,512 

Total 

629,398 

502,883 

1 

126,515 


* Includes 445 million acres of inventoried forest land. Excludes 
Labrador, Yukon, and Northwest Territories. 

“Mature timber volumes only. 


SOURCE; Manning, Glenn H., and H. Rae Grinnell. Forest resources and 
utilization in Canada fo the year 2000. Dept, of the Environment, Canadian 
Forestry Serv. Publ. 1304, 80 p. Ottawa, Ont. 1971. 


"The rapid increase in the importance attached to environmental 
problems in Europe may have far-reaching repercussions on the 
management of existing forest resources, to the extent that 
environmental requirements may impose certain limitations on 
forestry's traditional role of supplying wood. These reper- 
cussions may be of different types; they may lead to certain 
forest areas being declared protection, conservation, or 
recreation areas, with severe restrictions on their commercial 
exploitation, or they may constitute hindrances to normal 
management . " 

The actual production of roundwood lumber in Europe between 
1970 and 1976 is presented as Table 5-46. As can be seen from this 
table, production in Europe has in reality dropped 6% between 1970 
and 1976. 


5. 9. 2. 3 Other Areas in the Developed World . The USSR, the single 
largest producer of timber in the world, Japan, Australia and New 
Zealand are members of this category. These countries also present 
potential markets for the HLA. The total production in these 
countries from 1970 through 1975 is presented in Table 5-47. 

5. 9. 2. 4 Developing Countries in Latin America, Africa, Asia , 

and Oceania . A large portion of the forest resources available in 
these areas are from tropical forests that are relatively inac- 
cessible and expensive to develop and harvest. The Outlook For 
Timber describes some of the other problems encountered in these 
regions (Reference 7). 














TABLE 5-44. Timber Harvest in Canada and Estimated Allowable Annual 
Timber Cut (by Province, 1970) (cubic feet, millions) 


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5-53 




TABLE 5-45. Production of Selected Timber Production Canada, 1970, 
with Projections to 2000 


TOTAL TIM- 
BER CUT 

Billion 
cu, ft. 

4.3 

5.4 
6.2 
9.1 

WOOD- 

PULP 

Million 

tons 

18.3 

21.9 

28.5 

35.2 

PAPER AND BOARD 

OTHER 

Million 

tons 

4.0 
6.2 
9.2 
12 1 

NEWS- 

PRINT 

Million 

tons 

8.8 

10.8 

13.2 

15.3 

TOTAL 

Million 

tons 

12.8 

16.9 

22.4 

27.4 

PLYWOOD (3/8-INCH BASIS) 

HARD- 

WOOD 

Billion 

square 

feet 

0.2 

1.1 

1.9 

2.6 

SOFT 

WOOD 

Billion 

square 

feet 

1.9 

3.2 

4.4 

6.1 

(3.8)* 

TOTAL 

Billion 

square 

feet 

2.1 

4 3 

6.4 

8.8 

LUMBER 

HARD- 

WOOD 

Billion 

board 

feet 

0.5 

.7 

8 

9 

SOFT- 

WOOD 

Billion 

board 

feet 

10.8 

13.8 

16.6 

193 

(24.0)* 

TOTAL 

Billion 

board 

feet 

11.3 
14.5 
17 4 
20.1 

YEAR 

1970 

1980 

1990 

2000 


E 


00 

*0 


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TABLE 5-46, Timber Production in Europe (cubic feet, millions) 



5-55 


SOURCE; 1970 Yearbook of Forest Products; FAO of UN <Rome 1978) 




. Heterogeneity of the available forest resources is the 
main problem in the Amazon region of Brazil. In one 
area, 50% of the trees available were found to be dis- 
tributed among 35 species, while the remaining were 
distributed among 100 species, each with different 
characteristics. This problem is also found in Asia and 
Africa, but to a lesser extent than in Latin America. 

. Ecological balance of tropical rainforest has been found 
to be extremely delicate, and it has been found that 
areas harvested do not necessarily rejuvenate and re- 
produce. The tropical rainforests are described by 
ecologists as a nonrenewable resource. 

. Much potential forest land is being cleared to accommo- 
date the needs for agricultural land to grow food pro- 
ducts for rapidly expanding populations. 

. Much of the timber produced is of low quality. 

Despite these dire circumstances the timber harvest in the 
developing world is increasing, and projections of continued ex- 
pansion have been made. 

The potential for the HLA with its flexibility and minimal 
environmental impact could in some cases be a major help to improve 
the productivity of forest product harvesting in the developing 
world. Table 6-48 presents the total harvests of the developing 
nations in the years 1970 through 1976. 

5.9.3 Worldwide Logging Market Summary 

The forecast of the worldwide logging market summarizing the 
data in this section is given in Table 5-49. 


5.10 Markets for Unloading of Cargoes in Congested Ports 

Port congestion is generally a result of cargo throughput in 
excess of the capacity of a port, and it occurs frequently in 
areas with limited transportation infrastructure to quickly trans- 
port cargoes into and out of the port, limited storage facilities 
and a limited number of berths for ship loading and discharge. 

Most ports in the United States, Europe, Japan, Far East, and 
the Caribbean have invested in modern cargo landing facilities and 
have adequate transportation infrastructure to absorb increasing 
cargo flows. In some areas, primarily in the United States and 
Europe, the competitive environment in attracting cargo and ship 


5-56 




5-57 



















































operators to their facilities led some port authorities to con- 
struct port capacity in excess of what was needed, causing under- 
utilization of some facilities. Port congestion is therefore 
virtually non-existent in these countries. Situations of temporary 
congestion may occur as a result of equipment breakdown, labor 
disputes, and other situations. 

The world trouble spots in terms of congestion have primarily 
been concentrated in three areas: 

. The Inner Mediterranean and North Africa 

. The Persian Gulf 

. West Africa. 

In all these areas major port congestion has occurred with regular 
frequency. All these areas have planned major port expansion 
projects, which are expected to cure most of the ills leading to 
port congestion, except in some of the OPEC nations. A report 
prepared by the CACI for the Maritime Administration has predicted 
that despite the vast port expansion programs to be undertaken by 
the OPEC member nations in the Persian Gulf and North Africa, it 
is expected that the increase in the waterborne trade of some of 
these countries will grow faster than the progress of their port 
expansion projects. The existing and planned additions to the 
port facilities in the North African and the Persian Gulf OPEC 
nations is presented in Table 5-50. The capacities of these 
future facilities are presented as Table 5-51. The definitions of 
the capacity terms used in Table 5-51 are (Reference 9): 

Nominal Capacity . The annual tonnage a port is expected 
to process while operating 14-16 hours/day, 280 days/ 
year after weather losses and holidays. No congestion 
is presumed to occur. 

. Extended Capacity . The annual tonnage a port is ex- 
pected to process in 20-23 hours/day, 310 days/year. 

Some congestion is inevitable, but it is not serious. 
Berthing delays are from 0 to 2 days. 

Maximum Capacity . The tonnage per year a port could 
process if 1975-1976 performance could be sustained. 
Congestion is severe. Storage areas are also congested. 
Berthing delays, depending on the port, range from 15 to 
30 days. 

The expected congestion in these countries is presented for 
the years 1980 and 1985 in Tables 5-52 and 5-53. Data in these 
tables suggest that minimal congestion is expected in 1980 for all 
countries except Saudi Arabia and Libya. By 1985, however, this 


5-59 


ORUQSNAL PAGE US. 
OF POOR QUAL5TY 



TABLE 5-50. OPEC Ports- Likely Completion Schedules for Planned 
Commercial Port Facilities by Country, 1980 and 1985 


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TABLE 5-51. 


Aggregate Capacity Ratings of Commercial Ports by 
Country, 1980 and 1985 


PLANNED PROGRAMS 

1960 

1985 

NOMINAL 

CAPACITY 

EXTENDED 

CAPACITY*’ 

MAXIMUM 

CAPACITY** 

NOMINAL 

CAPACITY 

EXTENDED 

CAPACITY** 

MAXIMUM 

CAPACITY** 

Iran 

20.4 

23.8 

30.9 

25.1 

32.5 

37.9 

Saudi Arabia 

38.7 



45.0 



Iraq 

8 1 

10.2 

12.2 

8.1 

10.2 

12.2 

Kuwait 

5.1 

5.8 


8.5 

10.0 


Qatar 

1.8 

2.3 


4.1 

5.0 


UAE 

13.5 



32 8 



Algeria 

11.8 

12.8 


156 

19.6 


Libya 

13.6 



13.6 



REVISED PROGRAMS 







Saudi Arabia (cutbacks)^ 

18.6 



24.2 



UAE (cutbacks)*^ 

13.5 



17.9 



Iraq jmore berths)^ 

8.1 

10.2 

12.2 

12.6 

14.5 

15.2 


In addition to capacities at commercial ports, most countries have berths used primarily for loading certain products, for example, 
fertilizers, chemicals, and sometimes mineral ores. These berths are not controlled by national port authorities, do not accept traffic 
in general, and hence are excluded from totals. 


^Blanks indicate that no estimate was made. 

^Both Saudi Arabia and the UAE will have port capacity well in excess of their respective requirements To illustrate the excess, revised 
programs for both countries have been formulated. Details are found in the respective chapters. In essence, every project scheduled 
after 1980 has been cut completely or reduced drastically. No program at major existing ports in 1978 has been changed. Delayed 
schedules for 1980 projects have been imposed. 

^Iraqi planners have stated their intentions to make Umm Qasr a larger port than Basrah. Although no plans have been announced, 
the recent rate of Umm Qasr's development, together with reasonable construction schedules, has been used to extrapolate a 1985 
port with 16 berths handling 8 million tons/year with container equipment, bulk discharge equipment, and bulk-loading equipment. 
Existing plans specify an 8-berth port by 1979. The current total is four berths, 


SOURCE: CACI 










TAB LE 5-52. Projected Port Status of OPEC Countries in the Middle East 
and North Africa, 1980 





5-63 



situation is expected to change quite dramatically. Periodic 
severe congestion is expected in Iran and Algeria. In Iran, the 
expected cargo throughput is expected to exceed the unusual port 
capacity by 11.9 million tons, while in Algeria the excess cargo 
is expected to be 14.9 million tons, or almost half of the total 
throughput. Minimal congestion is expected in Iraq and Kuwait, 
while maximum utilization is expected for Libya. Underutilization 
of capacity is expected for Saudi Arabia, Quatar and United Arab 
Emirates (UAE) . The total expected cargo congestion in the Middle 
East in 1980 and 1985 is summarized in Table 5-54. 

The HLA is limited to handling containerized cargoes, which 
in the case of the waterborne trade of these nations is currently 
a relative minor proportion of the total trade volume. The major 
proportion of the non-petroleum trade consists of construction 
materials and machinery, fertilizers, petrochemicals, and bulk 
grain. The total market for loading and discharge of container- 
ized cargo in the congested ports in 1980 and 1985 will therefore 
be only a proportion of the total market, which is presented in 
Table 5-50. In 1977, close to 40% of the total trade to this area 
moved in liner vessels. It is estimated that approximately 80% of 
these cargoes were containerizable. Thus, containerizable com- 
modities constituted approximately 30% of total trade volume to 
this area. In developing the market estimate it is assumed that 
containerizable cargoes will constitute the same proportion of the 
congested trade as is represented by the total trade. Thus con- 
tainerized congestion is estimated at 30% of total congestion. 

The market for heavy-lift services based on this estimate is 
presented as Table 5-54 . 


TABLE 5-54. Estimated Container Cargoes in Congested Ports 



I960 

1865 


total 

CARGO CONGESTION 
(MILLION TONSI 

CONTAINERIZED 
CARGO CONGESTION 
(MILLION TONS) 

number OF * 
CONTAINERS 
(THOUSANDS) 

TOTAL 

CARGO CONGESTION 
(MILLIONTONS) 

CONTAWEHIZEP 
CARGO CONGESTION 
(MILLION TONS) 

NUMBER OF ' 
CONTAINERS 
(THOUSANDS) 

Iran 

5.0 

1.5 

04 

)I.G 

35 

219 

Iraq 

2.1 

0 6 

38 

10 

06 

38 

Kuwanii 

1 .) 

0.3 

10 

18 

oe 

38 

Quaiar 

06 

0 2 

13 

- 

- 

- 

Algeria 

86 

2 6 

163 

14 8 

45 

281 


17.4 

bi 

327 

30.3 

8 2 

b?6 


*NuinLtei uf cun(ain«e/$ based on an average load oi 1C ion»per umi 


5-64 



5.11 The Market for the Transportation and Rigging 
of Heavy and Outsized Components 

Trade and transportation statistics that separate heavy and 
outsized component information are not generally available. These 
components are as a rule aggregated into larger categories that 
make them difficult to identify. The HLA market for transportation 
of heavy and outsized components are therefore based on the estimates 
of people with intimate knowledge of this industry. 

The wide diversity of types of products and components re- 
quiring specialized transportation and rigging and their maximum 
weights and dimensions are indicated in Table 5-55. 

5.11.1 United States 

According to the Heavy and Specialized Carriers Conference of 
American Trucking Associations, the heavy and specialized truck 
hauling industry in the United States generates revenues of a 
pproximately $2.5 million per year, while the crane and rigging 
industry has total revenues of $2.4 million. The railroads, which 
control the major share of the heavy and outsized transportation 
market, have no similar estimate available. The only statistics 
available indicating the magnitude of the United States railroad 
market for heavy and outsized transportation are the number of 
loaded moves by the specialized flatcars. In 1975, a total of 3100 
loads were moved on specialized flatcars and in 1976 the total 
number of loads was 3400. No estimates on the total number trans- 
ported by barge or ships on the inland waterways are available. 

In cases where loads can be rigged and transported by rail, 
truck, barge, and ship without major complicating factors, the HLA 
cannot be competitive. It is only in cases where major complica- 
tions in the form of major route diversions, bridge strengthening, 
road improvement, and highly specialized and costly rigging are 
required that the HLA can possibly be competitive. When such com- 
plications are introduced, the transportation and rigging job is 
normally referred to one of the dozen highly specialized rigging 
and hauling companies in the United States that has the skill, 
equipment, and resources available to handle such complicated jobs. 

Williams Crane Rigging Company, one of the major specialized 
rigging and hauling companies in the United States, has estimated 
that the total number of highly complex transportation and rigging 
jobs involving heavy or outsized components transported by trucks 
varies between 600 and 1200 per year in the United States. Included 
in this estimate are components for petrochemical plants and elec- 
tric generating stations, which are described in Sections 5.1 and 
5.5. These two sectors are expected to account for approximately 


5-6 5 


ORIGtWAL PAGE IS 
UF POOR QUALITY 



TABLE 5-55. Maximum Size Units by Industry 


H lijN 




CO 


in 

O 

o 



05 ^ ^ O) ID 
CO CM T- •- 1- 



CO 

CM 



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CO 

CO 

in 

^5 

CM 

CM 

CM 

05 

CM 


CO 

CO 

CO 


00* 

in 

oo' 


ro“ 1 



in 



i 



00 <0 ^ ^ CM ^ 
CM CM T“ ^ 


o 00 in 
^ CM cn 




CO 

O) (O 

CO ^ 

CM 

CM 

CM •- 



O) O ^ Q CM 
CO CM O ^ ^ CO 


£ Q in Q o O 
CO O in in m CO 
CM ro ^ ^ CM 00 


CO 

CM 

^5J 

CO 

30 

28 

35 

CO 

CO 

in ^ Q 

in. 

rv 

^ a 

CM 

m 

O CM o 

CM 

in 

Q 00 •- 

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in 

O »- 05 





2 ® 2 2 i 

o a 2 

K E w £ y 

o (S o ^ S 

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0) ft Oi ® ^ Q> 

C W := c t: c 

0> 3 O 0) o 4> 

a »- DO o h- o 


o> o» 

^ ^ c. 

-2 4_ 2 

aa>ai_H* 

E « E 2 2 

^ Q $ O u a> 

2 0^0 

5 fe S 5 ^ ? 

= S 2 S S 2 

» 0) M g> CJ 3 

O DC 2 QC 3 ® 

CD 0. Z Z 



5-66 

































TABLE 5-55. Maximum Size Units by Industry (Continued) 


WEIGHT 

< - 
OKN 

OC K 

< it 

O a 


0.187 

1.07 


0.49 

0.08 

0,25 

0.05 

0.09 

0.07 

0.20 

0.15 

0.90 

0.30 

0.07 

0,10 

0.08 


rv 

n ^ CO 

d d d 


0.11 

VOLUME 

WEIGHT 

(CFT/MT) 


17 

16 


153 
472 

90 

262 

154 
233 

46 

144 

22 

44 

403 

384 

251 


Q 


0 

rv 

VOLUME 

(CFT) 


7,605 

9,503 


140,397 

212,544 

37,030 

14,400 

39,200 

34,969 

10,611 

49,560 

11,076 

6,591 

88,592 

96.000 

80.000 


■ 


9,600 

HEIGHT 

(FEET) 


15 

17 


29 

36 

23 

12 

14 

17 

9 

21 

13 

13 

28 

40 

20 

L 


P CD 00 
^ CM t- 


00 

WIDTH 

(FEET) 

H 

13 

13 


29 

36 

23 

12 

14 

17 

9 

20 

12 

13 

28 

40 


TT <0 
CM 


CM 

LENGTH 

(FEET) 

Z 

111 

i 

i 

111 

z 

^ s? 

CO 

»- 

Z 

< 

a. 

-j 

< 

f 5 

165 

164 

70 
100 
200 
121 
131 
118 

71 
39 

113 

60 

200 

> 

a 

UJ 

Z 

40 

60 

35 

> 

GC 

ui 

Z 

X 

u 

< 

100 

WEIGHT 

(METRIC TONNES) 

0 

CO 

1 

CO 

z 

< 

H ' 
U 

c 

o 

009 

6£fr 

i 

UJ 

X 

o 

D 

Z 

< 

CO 

UJ 

E 

UJ 

z 

209 

450 

410 

55 

255 

150 

230 

345 

507 

150 

220 

250 

319 

X 

u 

< 

s 

a 

z 

Z 

OC 

0 

s 

< 

209 

164 

228 

cc 

UJ 

X 

1- 

< 

UJ 

u 

0 

z 

< 

UI 

-J 

137 



UJ 

u 

UJ 

1 


E 

UJ 

cc 


UJ 

S 

1 


r““ ■ 

X 

UJ 

1- 



ITEM 

VI. INDUSTRY NO. 6- 

Dry Three-Phase T ransfor 
Transformer 

IX. INDUSTRY NO. 9 - 

Pressure Vessel 

Towers 

Reactor 

LPG Storage Tanks 

Heat Exchangers 

Columns 

Absorbers 

Separators 

Converters 

Evaporators 

Oil Splitter 

Gas Compresser 

CO 2 Stripper 

VIII. INDUSTRY NO. 8 

Steel Press (1 Piece) 
Oxygen Furnace Vessel 
Mill Housing 

X. INDUSTRY NO. 10 - 

Spinning Machinery 


5-67 










TABLE 5-55. Maximum Size Units by Industry (Continued) 














H 

QJ^jl 











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5 t 


^ ^ o 


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CD ID ro 

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d d d d d d d d ^ 


d 


d d d d 

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D 

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m n o n 


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11 

26 

31 

48 

93 

13 

99 

33 

34 


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X ID 0> CO 


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CNJ LO *— 


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o 

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5 

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o CN cn b d o o ID o 


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CN 


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X Q O CN 
CN 5 O ^ 

b H 

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cn CO rsT 
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LO Q' ^ d CN O CO lf> 

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CM 


ID CO d* d* 

CO X CN 







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in -d- 







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CN 

» UJ 
X UJ 
U/ IL. 


12 

18 

15 

5 


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80 

26 

17 

66 

40 

160 

50 

15 

12 


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09 

09 

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91 

001 

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120 

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eS 

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s 

80 

62 

86 

66 

90 

200 

52 

15 

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X 

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279 

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273 

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391 

137 

148 

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546 

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0) 

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5-68 


I 




TABLE 5-55. Maximum Size Units by Industry (Concluded) 



< 






















H 

UiCM 





















X 

X 



r*. 

u> 

CO 

ID 

ro 

CN 

X 


X 

o 

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r>» 


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< 

IL 


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CN 

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CN 

o 

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d 

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s 





















UJ 

H 

C 





















S 

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2 


0) 

00 

o> 


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CN 

X 


X 

30 

X 

CN 


X 

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X Q 
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o 

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r> 

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00 

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CN 

X 

s 



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s 

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a 

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80 

X 

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X 

X 

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X 

X 

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X 

NT 

rv 

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X 

o 

s 

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> 

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1 

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d 

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d 

z 







> 

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CO 



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0) 

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0> 

> 




> 

X 

K 

X 


d 

a 

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> 

X 






s 

D 



$ 

c 



5 

3 


CO 

(0 










UI 

1- 

O 

z 

> 

X 

Hauler 

Crusher 

</i 

< 

o 

&> 

c8 

> 

to 

•M 

o 

X 

Kiln Ring 
Mill Shell 

C 

X 

O 

Z 

X 

X 

Barge 

Dredge — 
Ro-Ro R 

Tug Boat 

Buoy 

X 

lA 

Ferryboat 

mJ 

o 

z 

X* 

X 

LCM8 

LCU 

Causeway 

1 LarclO/X 


5-69 


SOURCE: Lylces Bros. Steamship Co., Inc. 




half the total jobs in this area. Thus, if we deduct these two 
sectors, a total market of between 300 and 600 jobs will be gener- 
ated for specialized rigging and hauling in sectors other than the 
electric generating, refinery, and petrochemical plant construction 
in the United States. 

5.11.2 Western Europe 

In Western Europe, the total number of heavy and outsized 
components requiring specialized transportation per year for the 
period 1980 to 1985 has been estimated (Reference 10)* as follows: 

Components Weight (tons) Number of Items 

35 - 100 6550 

100 - 300 990 

300 - 500 450 

The great majority of these components can easily be trans- 
ported and rigged without complication by conventional means of 
transportation and lifting. It is estimated that specialized 
carriers have to be employed for partial or complete rigging and 
transportation of a number of jobs equal to that in the United 
States (i.e, between 600 and 1200 per year). In Western Europe, as 
in the United States, it is expected that the electrical generating, 
and petrochemical plant construction projects, which already have 
been accounted for in previous sections, will account for approxi- 
mately half of these jobs. Thus the total number of other jobs in 
which an HLA could potentially become active would be between 300 
and 600 jobs per year. 

5.11.3 The Remaining World 

Good estimates on the total number of highly complex trans- 
portation and rigging jobs in the remainder of the industrialized 
and developing world have not been found. It is a fact, however, 
that the United States and Western Europe together account for more 
than 2/3 of the total economic activity in the world. The trans- 
portation and rigging of heavy and outsized components are closely 
related to the total economic activity. On this basis, it can be 
estimated that the total market for specialized rigging and hauling 
services in the world outside of the United States and Western 
Europe where an HLA can be competitive will be approximately equal 
to the average of the market size in these two areas, or between 
300 and 600 jobs per year. 

The total worldwide market for general transportation services 
where the HLA can be competitive is summarized in Table 5-56. 


G.S. Nesterenko and V.I. Narinskiy, "Modern Aerostatic Flight Vehicles", 
NASA TM-75092, May 1978, P. 35. 


5-70 



TABLE 5-56. Market for Transportation and Rigging of Heavy and 
Oversized Components 


COUNTRIES 

NUMBER OF MOVES 

LOW 

HIGH 

United States 

300 

600 

Europe 

300 

600 

Other World 

300 

1 

600 

Total 

1 900 

1 

1 

1800 


5.11.4 Other Potential Markets for HLAs 

As can be seen from the above market for general transportation 
and rigging services, the use of the HLA in competition with exist- 
ing modes of transportation is limited. The greatest market poten- 
tial for the HLA, however, may come from opportunities that cur- 
rently do not exist. 

With the exception of barges, all currently existing modes of 
transportation have highly restrictive limitations on the weight 
and dimensions of tne cargoes to be transported. A number of 
cargoes therefore have to be subdivided into smaller components for 
transportation and then reassembled at the destination. This 
disassembly and reassembly can be quite costly and have been esti- 
mated to account for up to 35% of the cost of the delivered products 
for a highly complex product like a turbine and shaft for an electric 
generating station. 

There have also been indications of cases where components 
have had to be redesigned to enable subdivision into smaller com- 
ponents for transportation. Such changes have resulted in increases 
to both design and manufacturing costs. 

It has been indicated by the people interviewed that the pref- 
erence of manufacturers is to preassemble their products into the 
largest possible modules that can be accommodated by the capabili- 
ties of the existing transportation infrastructure and equipment, 
because substantial savings can be achieved by raising products 
preassembled in a factory compared to field conditions. The trend 
is towards larger and heavier components. 


5-71 


ORIGiNAL PAGE Ss 
OF POOR QUALITY 




An indication of the prevalence of having to disassemble com- 
ponents for shipments is also indicated by the study sponsored by 
MARAD and Lykes Brothers Co. (Reference 4) . Table 5-57 presents a 
tabulation of items that could be shipped assembled, but are dis- 
assembled due to the limitations of the transportation infrastruc- 
ture . 


An assessment of the ability of the HLA to compete for this 
market is indicated in the case studies on the construction of 
electric generating plants and transportation of shovels for strip 
mining. A further assessment of this potentially large market will 
require an extensive investigation which is beyond the scope of 
this study. No attempt has therefore been made to quantify this 
market. 


5.12 The Potential Military Market 

Possible applications for HLAs in the military are any short- 
range lifts of heavy or oversize cargoes in situations where local 
air superiority is assessed. Such situations are most typified by 
the follow-up ship-to-shore movement of cargoes in an amphibious 
assault. These cargoes would include standard military containers, 
heavy, earth moving equipments, vehicles, structural sections, and 
POL. 

The greatest volume of ship-to-shore traffic is that of de- 
livering containers. Reference 11 describes a comparison between 
several current techniques for providing a typical level of ship- 
to-shore such as would be required to supply an amphibious operation. 
In order to be competitive, an HLA would need to be able to carry 
an aggregate payload of at least 3 full containers over an average 
one-way two-mile trip in less than 7 minutes. This corresponds to 
a 75 ton payload and a block speed of approximately 25 to 30 mph 
assuming turnaround times at each end of about 2 to 2-1/2 minutes, 
and inflight accelerations and decelerations of about .05 to .10 g. 


5.13 Concluding Remarks 

In the preceding sections of this chapter the markets for 
heavy-lift services in which the HLA might compete have been quanti- 
fied and expressed in terms peculiar to each area of application. 
These markets are summarized in Table 5-58. This information pro- 
vides the basis for determining the size of the market for HLA ser- 
vices, the HLA sizes, and the number of each size required. The 
methodology used and the results obtained in this final step of 
market evaluation are described in the next chapter. 


5-72 


I 













TABLE 5-57. Items That Could be Shipped Assembled (Continued) 


X 

a 


§ S5 S ® 


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5 


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T 3 

o 

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5-74 


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1 

I 


INDUSTRY XIX: VESSELS 



5-75 



TABLE 5-58. Summary of Markets Requiring Heavy Lift Services 

[ ANNUAL MARKET 


APPLICATION 

NORTH AMERICA 

WORLD TOTAL 

UNITS 

Transportation and Erection of 




Refinery and Petrochemical Plant 

0,5x10® 

3.3 X 10® 

Barrels per day 

Components 




Support of Construction of Offshore 



Platforms 

Permanent Drilling and Production 

40 to 90 

50 to 150 

constructed 

Platforms for Oil and Gas 



per year 

Movement of Strip Mining Power 



Shovels 

Shovels 

95 

Not Available 

moved 




per year 

c * * L. u w . 345 KV 

Support of High Voltage 

4000 

12,800 

Miles of 

Power Transmission 500 KV 

1300 

4,000 

line construction 

Line Construction 



per year 

765 KV 

360 

570 


Electric Power 



MW generating 

Generating Plant 

36300 

85000 

capacity added 

Construction 



per year 

Support of the Construction 



Added pipeline 

of Gas or Oil Pipelines 

2400 to 2700 

10000 to 12000 

mileage per year 

HVAC. 

4250 to 5200 



Support of the High Rise Window 



Number of 

Construction Industry Wash, 

5000 to 6000 

Not Available 

lifts per 

Cranes. 

250 to 300 


year 

Support of Remote Drilling 
Installations and Operations 

34 

100 

■ 

■ 

Wells drilled 




per year 




Millions of | 

Logging 

7300* 

75 to 80,000 

cubic feet 




per year 




Number of 

Unloading Cargo in Congested 



containers 

Ports 

0 

325,000 to 575,000 

moved per 




year 

Transportation and Rigging of 



Number of 

Heavy and Oversized Components 

300 to 600 

900 to 1800 

moves per 




year 


5-76 










































ESTIMATION OF VEHICLE SIZES AND NUMBERS 
TO SATISFY EACH APPLICATION 


CHAPTER 6 




6. ESTIMATION OF VEHICLE SIZES AND NUMBERS 
TO SATISFY EACH APPLICATION 

Page 

Nuinber 

6.1 Introduction 6-1 

6.2 Market Assessment Logic 6-1 

6.2.1 Relationship Between Market and 

HLA Operational Characteristics 6-1 

6.2.2 Definition of Market Share for HLAs 6-2 

6.2.3 Relationship to Real Life 

Competition 6-4 

6.2.4 Definition of Free-Flying Vehicle 

(HLA) "Threshold Cost" 6-4 

6.3 Generalized Assessment Methodology for 

Number of Vehicles to Fulfill a Particular 
Heavy Lift Need 6-5 

6.3.1 The Number of Vehicles Required to 

Fulfill a Total Heavy Lift Need 6-7 

6.3.2 The Market Share to be Acquired 

by HLA 6-8 

6.3.3 Number of Vehicles Required to 

Fulfill HLA Share 6-9 

6.3.4 The Characteristics of the 

Parameter 6-10 

6.3.5 HLA Kinematics 6-13 

6.4 Case Study No. 1 Construction of Oil 

Refineries and Petrochemical Plants 6-19 

6.4.1 Current Operations 6-19 

6.4.2 Potential HLA Applications 6-22 

6.4.3 Estimate of HLA Needed to Satisfy 

the Potential Market 6-25 

6.5 Case Study No. 2 Construction of Offshore 

Oil and Gas Production Platforms 6-27 

6.5.1 Current Operations 6-27 

6.5.2 Potential HLA Applications 6-30 

6.5.3 Estimate of HLAs Needed to Satisfy 

the Potential Market 6-35 



Page 

Number 


6.6 Case Study No. 3 Transportation of Power 

Shovels Used in Strip Mining 6-38 

6.6.1 Current Operations 6-38 

6.6.2 Potential HLA Applications 6-39 

6.6.3 Estimate of HLA Needed to Satisfy 

the Potential Market 6-42 

6.7 Case Study No. 4 Power Transmission Line 

Construction 6-44 

6.7.1 Current Operations 6-44 

6.7.2 Potential HLA Applications 6-47 

6.7.3 Estimate of HLA Needed to Satisfy 

the Potential Market 6-51 


6.8 Case Study No. 5 Transportation of Equip- 
ment for and Construction of Steam Electric 


Generating Pleuits 6-60 

6.8.1 Current Operations 6-60 

6.8.2 Potential HLA Applications 6-62 

6.8.3 Estimate of HLA Needed to Satisfy 

the Potential Market 6-71 

6.9 Case Study No. 6 Pipeline Construction 

in Northern Canada 6-77 

6.9.1 Current Operations 6-77 

6.9.2 Potential HLA Applications 6-79 

6.9.3 Estimate of HLA Needed to Satisfy 

the Potential Market 6-85 

6.10 Case Study No. 7 Heating/Ventilator/ Air 6-89 

Conditioning Unit Emplacement 

6.10.1 Current Operations 6-89 

6.10.2 Potential HLA Applications 6-91 

6.10.3 Estimate of HLA Needed to Satisfy 

the Potential Market 6-94 

6.11 Case Study No. 8 Oil and Gas Drilling in 

Remote Areas 6-96 

6.11.1 Current Operations 6-96 

6.11.2 Potential HLA Applications 6-97 

6.11.3 Estimate of HLA Needed to Satisfy 
the Potential Market 


I 


6-99 



Page 

Number 


6.12 


6.13 


6.14 


6.15 


Case Study No. 9 Logging and Forestry 

6.12.1 Current Operations 

6.12.2 Potential HLA Applications 

6.12.3 Estimate of HLA Needed to Satisfy 
the Potential Market 

Case Study No. 10 Load and Discharge of 
Containers in Congested Ports 

6.13.1 Current Operations 

6.13.2 Potential HLA Applications 

6.13.3 Estimate of HLA Needed to Satisfy 
the Potential Market 

Case Study No. 11 Parametric Analysis of 
Transportion and Rigging of Heavy and Out- 
sized Loads by Various Modes 

6.14.1 Current Situation 

6.14.2 Potential HLA Applications 

6.14.3 Estimate of HLA Needed to Satisfy 
the Potential Market 

Summary of the Number of HLA Required to 
Satisfy the Worldwide Heavy Lift Market 

6.15.1 The Effect of Utilization 

6.15.2 The Effect of Annual Ferry Time 


6-103 

6-103 

6-120 

6-123 

6-130 

6-130 

6-133 

6-138 

6-142 

6-142 

6-165 

6-170 

6-177 

6-177 

6-177 




LIST OF 


FIGURES 


Page 

Number 


6-1 

The Effect of Ferry on the Number of HLA 

6-11 

6-2 

Effect of Ferry Factor on Variations in 
Market, Ferry and Job Parameters 

6-12 

6-3 

Sensitivity of HLA Costs to Scenario 
Parameters (Construction of Oil Refineries 
and Petrochemical Plants) 

6-26 

6-4 

Threshold Cost Sensitivity (Transmission 
Tower Placement) 

6-54 

6-5 

Running Skyline System 

6-110 

6-6 

Balloon, Highlead System 

6-113 

6-7 

Illustration of Bucking Value Loss of 
Medium-Size Tree — Douglas Fir (Density 50 
Pounds Per Cubic Foot) 

6-117 

6-8 

Estimate of Bucking Value Losses for 
Different Helicopter Payload Capacities 
and Large-End Tree Diameters (Douglas Fir) 

6-117 

6-9 

Generalization of Clearances in the United 
States 

6-154 

6-10 

U.S. Inland and Coastal Barging Charges 

6-156 

6-11 

European Barge Towing Charges by Navigation 
Channel 

6-157 





LIST OF TABLES 


- 


Page 

Number 

6-1 

Percent Earnings Required to Enter and 
Capture Market 

6-3 

6-2 

Element of Job Costs for Conventional 
Techniques and for Alternative Techniques 
Using Free Flying Vehicles 

6-6 

6-3 

One-way Trip Distance, and Time, tjjj, at 

Which Cruise Speed V Can Just be Reached 
with Acceleration and Deceleration of n 

6-15 

6-4 

Distance Djj^ at which (V^vg/V) =0 . 9 , for 
Cruise Speed, V^, and Acceleration and 
Deceleration, n 

6-16 

6-6 

Maximum Speed, When HLA Cannot Reach 
Cruise Speed V 

6-16 

6-5 

One-Way Trip Times versus Cruise Speed, 
and Acceleration/Deceleration, n 

6-17 

6-7 

Maximum Weights and Dimensions of Components 
for Refineries and Petrochemical Plants 

6-19 

6-8 

No-Ferry Number of Vehicles for 100% of 
the Refinery Market 

6-25 

6-9 

No-Ferry Number of Vehicles to Satisfy 
100% of the Offshore Drilling Rig Market 

6-36 

6-10 

HLA Market Share for Offshore Drilling Rigs 

6-37 

6-11 

No-Ferry Number of HLA to Satisfy the 
Drilling Rig Market 

6-37 

6-12 

No-Ferry Number of Vehicles to Satisfy 
100% of the Strip Mining Market 

6-42 

^ 6-13 

No-Ferry HLA Share of the Strip Mining 
Market 

6-43 


ORiGsMAL PAGE Si 
UF POOR QUALITY 




Page 

Number 


6-14 No-Ferry Number of Vehicles to Satisfy the 
HLA Share of the Strip Mining Market 

6-15 No-Ferry Number of Vehicles to Satisfy 

100% of the Transmission Tower Placement 
Market 


6-16 HLA Threshold Cost vs. Skycrane Competition 

6-17 Threshold and Average HLA Job Costs (Trans- 
mission Tower Placement) 

6-18 No-Ferry Number of HLA to Satisfy the HLA 
Share of the Transmission Tower Placement 
Market 


6-19 



for the Transmission Tower Placement 
Market 


6-20 Power Generation Plant Component Weights 
and Distribution 


6-21 Number of Lifts Per Year to Support 
Application 2 

6-22 Number of Lifts Per Year to Support 
Application 3 

6-23 Operating Time for Application 1 (hours) 

6-24 Operating Time for Application 2 (hours) 

6-25 Operating Time for Application 3 (hours) 

6-26 No-Ferry Number of Vehicles to Satisfy 

100% of the Power Generation Market 


6-27 Operation Times for the Pipeline Con- 
struction Applications 

6-28 No-Ferry Number of Vehicles to Satisfy 

100% of the Pipeline Construction Market 

6-29 No-Ferry HLA Share of the Pipeline Con- 
struction Market 

6-30 Operating Times for Remote Drilling Site 


I 


6-43 

6-52 

6-56 

6-57 

6-58 

6-59 

6-72 

6-72 

6-73 

6-73 

6-74 

6-74 

6-75 

6-86 

6-07 

6-88 

6-100 



Page 

Number 


6-31 

No-Ferry Number of Vehicles to Satisfy 
100% of the Remote Drilling Site Market 

6-100 

6-32 

HLA Market Share for the Remote Drilling 
Site Application 

6-101 

6-33 

Ratio of "Vehicles With Ferry" to "No- 
Ferry Number of Vehicles" 

6-102 

6-34 

Weight per Cubic Foot of Selected Commercial 
Species 

6-106 

6-35 

Operating Costs — Sikorsky S-64E and S-64F 

6-115 

6-36 

Yarding Costs for Sikorksy S-64F Helicopters 

6-116 

6-37 

Cost for Crews 

6-119 

6-38 

Total Yarding Cost 

6-119 

6-39 

Potential Operating Scenarios With HLA 

6-123 

6-40 

Operational Time for Logging Applications 

6-124 

6-41 

Number of No-Ferry Vehicles for 100% of the 
Logging Market 

6-125 

6-42 

Logging Application Threshold Costs 

6-126 

6-43 

Average HLA Job Costs for Logging 
Applications 

6-127 

6-44 

HLA Market Share for Logging Applications 

6-127 

6-45 

Number of HLA to Satisfy the HLA Share of 
the Logging Market 

6-128 

6-46 

Ratio of "Number of Vehicles With Ferry" 
to "No-Ferry Number of Vehicles," for 
Logging Applications 

6-129 

6-47 

Operating Scenario-One-Way Container 
Traffic 

6-136 

6-48 

No-Ferry Number of Vehicles to Satisfy 100% 
of the Congested Port Container Market 

6-139 

6-49 

Threshold Cost for Application 2 ($ per 
container) 

6-140 





Page 

Number 

6-50 

In-Port Delay per Container (Days) 

6-140 

6-51 

Average HLA Job Costs per Container ($) 

6-141 

6-52 

U.S. Railroad Heavy Lift Movement Costs 

6-152 

6-53 

U.S. River Barge Cost 

6-155 

6-54 

Flat Deck, Heavy Lift, Oceangoing Barges 

6-159 

6-55 

Rate Predictor Model (40 Tonnes) 

6-160 

6-56 

Components that Union Mechling Transport 
by Barge 

6-161 

6-57 

Typical Rates for Load of 1200 Tons From 
Memphis, Tennessee 

6-161 

6-58 

Typical Operating Times for Transportation 
Applications 

6-171 

6-59 

No-Ferry Number of Vehicles to Satisfy 
100% of the Transportation Market 

6-172 

6-60 

Average HLA Job Costs for Transportation 
Applications 

6-173 

6-61 

"No-Ferry" HLA Share of Transportation 
Market 

6-173 

6-62 

"No-Ferry" Number of Vehicles to Satisfy 
the Market Share 

6-174 

6-63 

Number of 25 mph HLA That Would Satisfy the 
Worldwide Heavy Lift Market 

6-175 

6-64 

Number of 60 mph HLA That Would Satisfy 
the Worldwide Heavy Lift Market 

6-176 


I 



6. ESTIMATION OF VEHICLE SIZES AND NUMBERS 
TO SATISFY EACH APPLICATION 


6.1 Introduction 

The previous section contained assessments of the total 
market potential for heavy lift transportation in areas where the 
HLA could be competitive. These assessments were preceded by 
operational and cost analyses. The effort reported in this sec- 
tion builds on that data through case studies to suggest how the 
HLA might enhance its competitive position in these markets, and 
the potential market share that might be acquired by HLA operators. 

The procedure employed was to develop, through a case study 
for each application, the threshold cost characteristics and the 
HLA cost characteristics for the applications discussed in Chapter 
5. The variation of the market share with savings occurring from 
HLA usage, and the resulting number of HLAs required to support 
the anticipated market share, were determined. The results for 
all cases are then combined into a total market and the effects 
of varying the major parameters on this market are identified. 

The HLA requirements that would enhance the overall market, HLA 
sizes, market areas for earliest introduction, and the potential 
for military application are also discussed. 


6.2 Market Assessment Logic 

The following defines the logic used to determine the number 
of HLAs to satisfy the market defined in Chapter 5. 

6.2.1 Relationship Between Market and HLA Operational 
Characteristics 

In order to develop a firm quantifiable relationship between 
HLA operational characteristics and any market, a major parameter 
must be defined for each market that describes the size of that 
market in terms that can be directly related to the ability of 
HLAs to carry heavy lift items in that market. For example, 
logging is characterized by "cubic feet logged per year", which 
is directly relatable to the rate of logging attainable with an 
individual HLA. Any given market may have several uses for 
HLA's with different characteristics, each of which must be dealt 
with separately, and then aggregated to define the total market. 


6-1 



6.2.2 Definition of Market Share for HLAs 


Having defined the market in HLA related terms, and identified 
the HLA use, the results of the threshold and cost sensitivity 
analyses of Sections 4 and 5 are used as the basis for determining 
the market share. A necessary preliminary step is to characterize 
the response of each market to the introduction of a system with 
potential for reducing costs. An in-house review of past study 
work and the experience of professionals in the general transpor- 
tation field coupled with responses from the shippers and operators 
interviewed, provided the basis for development of a simple but 
representative algorithm relating market share to money saved by 
using a given transport mode. The industry associated with each 
case study was reviewed to define, on the basis of industry con- 
servatism, innovativeness, competitiveness, and the value of goods 
to be handled by the HLA, two market features: 

. The minimum percent savings (A) over the current thres- 
hold costs that must be achieved before the HLA can begin 
to share in the market 

. The percent savings (B) beyond which the HLA would be 
assured of virtually the whole market. 

With these two features defined, a relationship between "HLA per- 
cent market share" and "Savings through HLA, (percent threshold 
costs)" can be readily hypothesized. The initial variation of 
market share with percent savings would be gentle. Subsequent 
rates of increase in market share would grow until 100% of the 
market is reached. An algorithm reflecting such behavior is: 



where M is percent market share, and S is savings (percent thres- 
hold cost) . 

The values for A and B that resulted from the discussion are given 
in Table 6-1. The market share is thus obtained, once the savings 
is determined from the threshold and HLA costs for the case study. 


6-2 



TABLE 6-1 . Percent Earnings Required to Enter and Capture Market 



% SAVINGS TO 

CASE STUDY 

ENTER MARKET (AJ 

CAPTURE MARKET (B) 

Logging 

0 

30-35 

Port Congestion,Cargo Unloading 

20 

50 

Transmission Line Towers 
Construction Support 

0 

30-35 

Remote Drilling Rigs Support 

5-10 

20-30 

Power Plant Construction Support 

20-25 

50 

Oil & Gas Production Platforms 

20 

50 

High Rise Construction Industry 
Support 

0-5 

25-30 

Home Building 

20 

50 

Refinery Construction 

20-25 


Transportation of Damage 
Sensitive Components 

25-30 

50-60 

Transportation of Damage 
Insensitive Components 

10-15 

35-40 

Transportation of Agricultural 
Products 

15-20 

30-35 

Pipeline Logistic Support 

20-25 

30-40 

Strip Mining Shovel Transport 

10-15 

35-40 


6-3 








6.2.3 Relationship to Real Life Competition 


The approach used to determine numbers of HLAs recognizes 
that competition between conventional and alternative heavy lift 
concepts will exist. It attempts to reflect that competition in 
such a way that the effect of varying the elements of the competi- 
tion can be assessed, at least qualitatively. The numbers of HLA 
will vary as the "share" relationship varies in form, content and 
likelihood; this relationship is assumed to be linear in the 
study. Through the mechanism of that relationship, the numbers 
will also vary as the financial arrangements made to finance or 
subsidize the operator's purchase of HLAs, are varied. The num- 
bers will also vary as the efficiency of the HLA as a heavy lifter 
is changed, as reflected in operating cost, in ferry costs, and in 
productivity. It is recognized, however, that none of these 
variations can substitute for a rigorous examination of market 
trends, financial status, profit potential of the HLA, and capital 
equipment investment, such as an operator has to undertake in real 
life. With that in mind, it is suggested that the numbers gener- 
ated here represent an upper bound to the likely HLA market. 

6.2.4 Definition of Free-Flying Vehicle (HLA) "Threshold Cost" 

Consider that the same task involving heavy lift is to be 
performed by either a combination of conventional techniques, or 
a combination of techniques including use of a free-flying vehicle. 
The costs for performing the task conventionally can be estimated 
from experience with the conventional techniques, while the cost 
of performing the task in the second approach {assuming a specific 
combination of techniques) can be estimated for all elements 
except that of the free-flying vehicle (FFV) itself. Thus, a 
break-even value for the cost of using the FFV can be defined by 
equating the two sets of costs, so that the cost of the task when 
using the FFV does not exceed the cost of doing it conventionally. 
The cost of the FFV that would be required to satisfy this break- 
even cost is the threshold cost of the FFV in performing the task, 
and can be directly compared with the actual HLA cost incurred in 
performing its part of the overall task. 

These approaches to performing the task may differ consid- 
erably because the FFV can be operated such that traditional 
difficulties normally overcome by conventional techniques no 
longer exist (such as physical obstacles that must be bypassed, 
use of heaving lifting machinery that must be transported to the 
site, preparation of a route to the site and the site itself, to 
permit use of the machinery) . Because the FFV can be operated in 
this manner, many of the ground system costs can be dramatically 
reduced through reductions in the need for machinery, in the need 






OF POO^ QUALSTt 


6-4 



I 



for route and site preparation and in the need to restore the 
route and site to minimize ecological or social impact. In addi- 
tion, because a FFV can operate more quietly and over a more 
direct path than ground systems, task times can be reduced, thus 
reducing labor costs, financing costs, storage costs and costs 
from pilferage and deterioration. Finally, because maximum size 
restrictions on components can be relaxed when using an FFV de- 
signed to carry the full weight of a component, the component need 
not be designed to be dismantled for transportation and reassumbly 
on site; by eliminating this step through use of an FFV, manufactur- 
ing costs are reduced through increased productivity, and task 
costs are further reduced by eliminating disassembly and assembly 
time. Use of an FFV may, however, incur some additional costs 
from the use of ground system support not previously required, 
such as specially-trained crews at the site where the heavy lift 
is to be placed to aid in hook-up, positioning the load, and 
disconnecting from the FFV. These are in addition to the costs of 
the use of the FFV itself. 

These elements and their relationship to HLA Threshold Cost 
as defined above are illustrated in Table 6-2. From this table, 
at break-even conditions, 

Total cost of approach = total cost of approach 

that is E© -Ed) * E©* 

and FFV (HLA) threshold cost = E® -E© = E^'s- 

Consequently, the FFV or HLA Threshold Cost, is the sum of all the 
differences in cost between the two techniques, excluding the 
direct charges for the HLA itself. 

In determining the Threshold Cost in the ensuing analyses, 
these differences in cost are carefully identified and defined so 
that subsequent analysis can consider their significance and uncer- 
tainty with respect to the final determination of the numbers of 
HLAs required to satisfy world-wide heavy-lift needs. 


6.3 Generalized Assessment Methodology for 
Number of Vehicles to Fulfill a 
Particular Heavy Lift Need 

The total number of vehicles (Ny) is a product of the number 
of HLA vehicles to satisfy the total need for heavy lift services 
(Ny) and the share of that market that can be acquired by HLA 
operators (M) . 


6-5 



TAB LE 6-2. Elements of Job Costs for Conventional 

Techniques and for Alternative Techniques 
Using Free Flying Vehicles 


JOB COST AND TIME COMPONENTS 




APPROACH0 

APPROACH0 

USING TECHNIOUESTHAT INCLUDE 

HLA 

THRESHOLD COST 




1 ICIM/S All 

FREE FLYING VEHICLES 

<- HLA JOB COST 

COMPONENTS 

uaipiu ALL 

CONVENTIONAL 

TECHNIQUES 

GROUND ACTIVITIES 
BY CONTRACTOR 

HLA JOB 
COSTS 

WHEN COSTS 
OF THE TWO 
APPROACHES 
ARE EQUAL) 

ffi 

tij 

EQUIPMENT 

JEi 

JE2 

wm 

A Je 

O 

o 

w 

LABOR 

JLi 

JL2 

■rh 

A Jl 

o 

H 

Z 

o 

FUEL/OIL 

JFl 

Jp2 

mm 

Ajf 



CONSUMABLES 

SCi 

SC2 

SC2* 

A Sc 


Ui 

K 

FACILITIES 

SF, 

SF2 

SF2* 

Asf 


CO 

Z 

STORAGE/HOLDING 

SSi 

SS2 


Ass 

K 

(C 

O 

SITE PREPARATION 


SP2 


Asp ^ 

O 

a. 

a. 

3 


SITE RESTORATION 

SR| 

SR2 


A Sr 

CO 

03 

o 

ai 

CO 

O 

EQUIPMENT 

SUPPLIES 

tei 

TS, 

TE2 

TS2 


Ate 

Ats 


♦- 

Ol 

MEN 

TM"! 

T M 2 


Atm 


CO 

Z 

< 

ROUTE PREPARATION 

TP, 

TPj 


Atp 

■ 

(C 

t- 

ROUTE RESTORATION 

tr, 

TR2 


ATr 

■ 


MANUFACTURING COST ^ 

Pi 

P2 


Ap 



JOB FINANCING 

Fl 

P2 


Af 

■ 


TH EFT/DAM AGE/SPOl LAGE 





TOTALS 

2© 

2® 

2@* 



+ FUNCTION OF PRODUCTIVITY, EXTENT OF ASSEMBLY/DISASSEMBLY, LOST PRODUCTION TIME 


I 


6-6 































Each term depends directly on the number of hours per year that 
each HLA vehicle can be earning revenue in performing heavy lift 
work; that is. 

The number of vehicles required to fulfill the total heavy 
lift need (N^) increases , as the productive hours per ve- 
hicle per year decreases 

. The market share that can be acquired by HLA vehicles (M) 
decreases , as the operators cost and therefore his price 
for a heavy lift job increases with decreasing productive 
hours per year per vehicle. 

These two terms are in conflict; their interaction must be explored, 
since the consequence is valid for all applications. 

6.3.1 The N umber of Vehicles Required to Fulfill a Total Heavy Lift 
Need ^ — — 


Let the heavy lift needs be defined in terms of H units per 
year (where H could be "events logged," "towers lifted," "ships un- 
loaded," etc.). 

Let the annual utilization for the HLA be U operating hours 
per year. 

Let the non-productive (mainly ferry) operating time be Tp 
hours per year. ^ 

Then the required heavy lift rate that all HLA together must 
achieve is 




vehicle — units per hour 


Each HLA can achieve a particular rate of heavy lift operations 
for a specific application which can be described as 


If M 

h units per hour 




Consequently, the number of HLA required to satisfy the specific 
heavy lift need is 



6-7 



assuming the HLA can capture 100 percent of this application 

(Note that N is the total number of vehicles if no ferry is 
^NF 

required, i.e., Tp = 0). 

6.3.2 The Market Share to be Acquired by HLA 

As defined earlier, the market share that an HLA can acquire is 
governed to a significant degree by the savings an HLA can generate 
relative to the threshold costs for an HLA in that application. The 
nonlinear algebraic relationship defined earlier reflects closely the 
probable manner in which the share would vary as the savings in- 
creased. For convenience in analysis, that relationship has been 
simplified to the following, 

M = j^(S - A)/(B - A)] JOO 

with little loss in the validity of the results. 

The savings, S, generated by the HLA in a particular applica- 
tion, is the difference between the Threshold Cost for the job 
(TC) , and the HLA cost for the job (HLAC) 

i.e., s. 

Since ferry costs must be recovered, the cost of ferry must be in- 
cluded in HLAC. However, at this stage in HLA development, ferry 
costs for a particular job are speculative, since no national base 
locations have yet been defined. A rational way of defining ferry 
costs per job is to assume a level of ferry costs per year, and 
prorate a share to the job 

i.e., HLAC = HLAC^^p + |Cp.Tpj|^ 


6-8 


I 



where 


HLAC„_ is the job cost without ferry 

Nr 

T„ is the annual hours of ferry (assumed) 
r 

is the time to complete the job 

U 

U is the annual HLA utilization 
C„ is the cost per ferry hour. 

r 

Combining all terms, the market share M can be defined as 



6.3.3 Number of Vehicles Required to Fulfill HLA Share 


Combining the two relationships 


N 


V 


N *M 

V 



6-9 


GRSGsJ'JAL page It 

OF POOR QUAL8TY 



Note that the first term defines the number of vehicles required 
if no unproductive HLA hours are spent per year,, (i.e., N ) while 


V 

NF 

the second term provides the modification that accounts for the effect 
of non-productive hours. 

Examining this relationship, it can be seen that when tt-j- = 1, 

the number of vehicles required is unaffected by the increase in 
unproductive hours since the share decreases at the same rate as 
the number of vehicles for the total share increases . When 

^F . ^F 

p— < 1 , N increases with T„ at a rate depending on p— r* when 

^F ^F 

C C 

^F F U 

p— decreases below 1, N decrease s, until p— = — , at which point 
^F ^ ^F ^F 

= 0 , because the increase in nonproductive costs has reduced the 

market share to zero. These relationships are shown in Figure 6-1. 

C„ 


6.3.4 The Characteristics of the Parameter 


C * 
F 


As defined above 


C * 
^F 


S’ 


(B - A) 'SjF 

kJ 


[(Sf)- ^ TC]/Tj 


s s 

= L TC 

■ l^NF - '‘J 


6-10 


I 



HLA'S (WITH FERRY) 


FIGURE 6-1. The Effect of Ferry on the Number of HLA 



6-11 



As previously defined, (Sj^ - A) TC is margin between the HLA job 
cost and the minimum cost at which the HLA can enter the market 


Q 

F _ (Ferry Cost) /(Ferry Time) 

Cp* (Job Cost Margin) /(Job Time) 


c 

rc„ T, 1 


r 

Thus j- varies with 

F 

F ^J 
TC 

and 

[skf - 


as in Figure 6-2 




can be defined for each application in turn. 



is also the same as 


Threshold cost per hour 


Thus 


C T 
TC 


is the same as the ratio 


Ferry cost per hour 
Threshold cost per hour 


FIGURE 6-2. Effect of Ferry Factor on Variations in Market, 
Ferry and Job Parameters 



6-12 




6.3.5 HLA Kinematics 


In general, HLA operations in any heavy lift activity consist 
of two major stages: 

. Transportation from the base to the operating area — the 
ferry activity 

. Transportation and hovering to fulfill the heavy lift 
needs in the operating area. 

"Ferry" transportation is conducted as economically as possible 
in the configuration appropriate to the heavy lift task. Such eco- 
nomical ferry may be best achieved by the use of separate propulsion 
power plants, rather than development of forward thrust through 
rotor tilt. Fuel consumption and time, in acceleration and climbout 
to ferry speed and altitude and deceleration and descent at the end 
of the ferry, may be considered small relative to the fuel and time 
required in the ferry mode, so that the ferry block speed is almost 
equal to the ferry flight speed. 

In the operating area activities, such an assumption cannot be 
made, because the transportation distances are in many cases very 
small. The block speed in these cases depends strongly on the 
distance travelled, the effective HLA acceleration and deceleration 
that occur at each end of the trip, and the turnaround time required 
to pick up and deposit the payload (effectively the total hover time 
per trip) 

This dependency is expressed as follows: 

Given D = the one-way trip distance 

t^^ = the turnaround time for the one-way trip 
V = the steady cruise speed 

f = the acceleration and deceleration at each end 
of the trip. (Assumed equal magnitude.) 

V^ve “ (trip distance/trip time) 

The one-way trip time is 


Acceleration time 


t^l + cruise time |t^| + deceleration time 



6-13 



This can be written 



which becomes 



where D is D in miles 

m 

V is V in miles per hour 
m 

n is f in g’s 

The block time for a one-way trip is thus 



For some very short trips, the distance may be insufficient to 
allow the HLA to accelerate to V. Then the distance is given by 

(Distance to Accelerate to V) + (Distance to Decelerate from V) 
This is 



I 


6-14 


The corresponding trip time is 


±. 1 ' 

2 /D 

= .4268 minutes 

v2 

Note, that when D = the expressions for trip time are the 

same ^ 



V 

f 


+ 



and 




V 

= .00152 — 
n 


minutes . 


At this point, D and t are as in Table 6-3 

m m 


TABLE 6-3 One-Way Trip Distance, D^, and Time, t^, at Which 
Cruise Speed Can Just be Reached With 
Acceleration and Deceleration of n 


V 


10 

75 

40 

no 

no 

100 



075 

017 

105 

770 

Ron 

1 on 

1 OR 



100 

on 

07R 

700 

4S0 

00 

1 75 



175 

010 

053 

150 

3R0 

.64 

1 00 



075 

707 

506 

BtO 

1 71f 

1.67? 

7074 



100 

157 

300 

eon 

017 

1 2IR 

1 5in 


1 

L 

175 

1?t 

304 

4BI> 

730 

077 

1 714 


Now the average trip speed, one-way trip distance 

divided by the one-way trip time. If V^ve significantly dif- 

ferent from V then the effects of deceleration and acceleration can 
be neglected. Let this difference be .lOV; i.e., let 

V * = .90V. 
ave 


From the earlier expression 



6-15 




Thus 


V. 


ave 

V 


n.9 


= .1111, or — ? — = 8783.5 

D f D .n 


This limit is shown in Table 6-4. At distances and speeds beyond 
these limits V = V and the one-way trip time becomes almost 

3. VG 

equal to Ld/v] 

TAB LE 6-4. Distance at which (Vg^/V) = 0.9, for Cruise 
Speed, Vfp, and Acceleration and Deceleration, n 



10 

25 

40 

60 

80 

100 



.075 

.1519 

.9488 

2.429 

5.465 

9.715 

15.18 

D* 

nri 

n 

.100 

.1139 

.7116 

1.8216 

4.0986 

7.2864 

11.385 



.125 

.0911 

.5693 

1.458 

3.279 

5.829 

9.108 


The one-way trip times are shown in Table 6-5 on the following 
page. The single figures are those where (V .^g/V) .90, and the 

shaded areas are those where the HLA cannot ?each the indicated 
cruise speed. The maximum speed attainable for these conditions 
is given by: 



This is given in Table 6- 6 

TABLE 6-6. Maximum Speed, When HLA Cannot Reach Cruise Speed 



(MILES) 

.10 

.30 

1.0 



.075 

24.3 

42.1 

76.8 

'^max 

n 

.100 

28.1 

48.7 

88.9 



.125 

31.4 

54.4 

99.3 


6-16 


I 



TABLE 6-5. One-Way Trip Times versus Cruise Speed, V 
and Acceleration/Deceleration, n 


> 



6-17 


ORIQfWAL PAGE 
OF POOR QUALITY 















These data, particularly in Table 6-5, can be used in analyzing 
an HLA application to determine whether the operational requirements 
must account for acceleration and deceleration, or whether these can 
be neglected. Note that the times quoted are one-way trip times and 
thus do not include turn-around time. Note also that successive but 
different one-way trip times can be aggregated, such as could occur 
if the application called for the HLA to carry a heavy payload only 
one way, and the HLA configuration permitted a significantly dif- 
ferent acceleration and cruise speed tor the return journey. 


6-18 



6.4 Case Study No. 1 

Construction of Oil Refineries and Petrochemical Plants 
6.4.1 Current Operations 

In the construction of refineries and petrochemical plants a 
number of oversized and heavy components have to be transported 
to and erected at the site. The maximum weights and dimensions 
of major components required in a refinery and petrochemical 
complex are described in Table 6-7. 

TABLE 6-7 Maximum Weights and Dimensions of Components for 
Refineries and Petrochemical Plants 


ITEM 

WEIGHT 

(METRIC TONNES) 

LENGTH 

(FEET) 

WIDTH 

(FEET) 

HEIGHT 

(FEET) 

Pressure Vessel 

920 

165 

29 

29 

Towers 

450 

164 

36 

36 

Reactor 

410 

70 

23 

23 

LPG Storage Tanks 

55 

100 

12 

12 

Heat Exchangers 

255 

200 

14 

14 

Columns 

150 

121 

17 

17 

Absorbers 

230 

131 

9 

9 

Separators 

345 

118 

20 

21 

Converters 

507 

71 

12 

13 

Evaporators 

150 

39 

13 

1 13 

Oil splitter 

220 

113 

28 

28 

Gas Compressor 

250 

60 

40 

40 

CO 2 Stripper 

319 

200 

20 

20 

Ethylene Fractionator 

300 

NA 

NA 

NA . 

Propylene Fractionator 

400 

NA 

NA 

NA 


SOURCE: Lykes Bros. SS Co. 


The number of heavy lifts varies for each project according 
to the type and size of plant. Some industry rules of thumb 
include: 


In oil refinery construction each 2,000 bbl/day capac- 
ity involves approximately one heavy lift over 100 
tons. As an example, a 50,000 bbl/day refinery will 
require an average of 25 lifts over 100 tons. 


6-19 




In the construction of ammonia plants the following 
rules are indicated: 

For a 1,000 ton/day plant, 8 heavy lifts over 100 
tons are required including one 350 ton converter 

For a 1,500 ton/day plant, 20 heavy lifts over 100 
tons are required including a 620 ton converter 

For a 2,500 ton/day plant, 35 heavy lifts over 100 
tons are required. 

The construction of a 500,000 ton/year capacity ethylene 
plant will require approximately 40 heavy lifts over 
100 tons. 


The major requirement in this industry is for precision 
placement on bolts or other guides with a maximum clearance of 1 
to 2 inches. It was also stressed that the impact of the components 
and the base has to be minimal. 


It should be noted that the very large components, i.e., 400 
to 800 tons, are the exception rather than the rule in the refinery 
and petrochemical industry. The major portion of the heavy lifts 
are usually in components weighing up to 400 tons. 


According to Mr. James Johnson, chief rigger of Fluor Corpora- 
tion in Houston, Texas, typical erection costs at a construction 
site for equipment of varying sizes are: 


Component Weight 

700-800 tons 
200-700 tons 
Up to 150 tons 


Equipment Used 

4 poles 
2 poles 
Crane 


Estimated Cost 

$ 120,000 

60,000 

10,000 


Some typical examples of transportation and erection of 
refinery and petrochemical components include the following: 


6.4.1. 1 Example (1) : Pressure Vessel . A pressure vessel of 200 

tons, 200-foot length and 22-foot diameter for a refinery in the 
U.S. gulf was manufactured in Japan and transported to a U.S. 
port by Ro/Ro vessel. At the port it was offloaded and moved on 
conventional rubberized equipment to the refinery site 15 miles 
away by a roundabout road route. The air distance was less than 
5 miles. The total cost of the transportation was approximately 
$90-100,000, plus $15,000 to upgrade the road. The latter cost 
was prorated over the movement of several other components subse- 
quently transported on the same road. 



Once at the site, crane poles were installed to erect the 
tower. The erection cost was approximately $120,000. 

6. 4. 1.2 Example (2) ; Refinery Reactor . A 820-ton refinery re- 
arrived by a Ro/Ro barge at a temporary barge landing close to a 
refinery site in the U.S. gulf. The cost of the temporary landing 
was approximately $25,000. The refinery vessel was placed on 
crawlers rather than conventional rubberized equipment due to the 
extreme weight of the load. Once the load was on the crawler, it 
was transported one mile to the refinery site, and erected. The 
cost of the transportation and rigging was $125,000. 

6.4.1. 3 Example (3) : Refinery Towers . At a refinery expansion 
in the Gulf of Mexico, four towers were to be installed: 

1 50-ton tower 
. 1 7 5- ton tower 

1 100-ton tower 
1 150-ton tower. 

The length of the longest unit was 160 feet. These towers were 
to be unloaded from a railcar, moved one-half mile to the site 
and erected at the site. The job was opened for competitive bids 
by the construction company. The winning bid for the total job 
was $100,000. The total job took three weeks. Once the crane 
was in place, each tower took two hours to install. 

6. 4. 1.4 Example (4): Petrochemical Vessels . For a petrochemical 

plant in Port Arthur, Texas, the following four petrochemical 
vessels were transported: 

1 504-ton vessel 
1 256-ton vessel 
1 80-ton vessel 
1 260-ton vessel 

The vessels were unloaded from barges and transported two and 
one-half miles to the site. On the route, one bridge had to be 
passed and the rigger had to put down steel beams on the bridge 
to carry the load. Each move required a total of six hours 
excluding the rigging and waiting time. Total manpower required 
was six men. Total cost of the hauling job was $272,000. 



6.4.2 Potential HLA Applications 


The transportation and erection of refinery and chemical 
plant components require transportation equipment and cranes , 
derricks, poles or other lifting equipment to be brought to the 
site and installed. The HLA can perform both the lifting and the 
transportation of the components, and as such it can potentially 
compete with the conventional modes of transportation and lifting 
for the refinery and chemical plant heavy lift business. 

6. 4. 2.1. Application 1: Short Haul Transportation and Erection 

of Refinery Components . The HLA is used to transport and erect 
the components involved from a barge landing or rail freight yard, 
to the refinery site. 


(1) Scenario 


A major expansion of a refinery and petrochemical 
complex is to take place at a location on the coast of the Gulf of 
Mexico, to provide an added annual capacity of 20,000 bbls/day. 

All the components described in cases 1 through 4 have to be 
transported to the site. The construction company has received 
bids from various riggers at the prices described in these cases. 
They are also investigating the economic feasibility of using an 
HLA as an alternative to the conventional methods of transporting 
and installing these components. 


In addition, the contractor is planning to erect the 
vessels described in example 4, using his own manpower. His 
estimates of the cost of this operation are: 


Weight 

1 504-ton vessel 
1 256-ton vessel 
1 260-ton vessel 
1 80-ton vessel 


Estimated Cost 

$60,000 

60,000 

60,000 

10,000 


(2) Assumptions 

Williams Crane & Rigging has given the following general 
guidelines as to the manpower requirement for rigging of various 
loads as follows: 


6-22 



Rigging Time 
Per Component 


Manpower 


Approx. Cost 
Per Component 


Component Weight 
40-100 tons 

100-175 tons 

200-400 tons 

over 400 tons 

The cos 
A minimum of a fu 


IS required to prepare the components, set up the required ground 
equipment and do all necessary rigging work. 


4 hours 3 

1 
1 

ironworkers 
crane/rig oper. 
oiler 

$ 

(min. 

500 

$l000/day ) 

4 hours 10 

1 
1 

ironworkers 
crane/rig oper. 
oiler 

$ 

1,200 

4 days 10 

1 
1 

ironworkers 
crane/rig oper. 
oiler 

$ 

9,600 

4 days up 

1 
1 

to 14 ironworkers 
crane/rig oper. 
oiler 

$ 

12,800 

are based on a rate of $200 per man per day. 
day's pay is required even though the job 
of a day. The time includes all work that 


It is assumed that these estimates are reasonable 
^PP^o^in'^t ions of the manpower , time and cost required to rig 
and prepare these loads for transport and erection using the HLA 
sither with personnel supplied by a rigger or the contractor. 

It is furthermore assumed that all work will be scheduled 
so that the HLA can perform the jobs without waiting time or 
other delays. 


(3) Potential Savings with HLA 

There are no savings with the HLA other than the possi- 
of not having to construct barge landings, improve roads 
or reinforce bridges. Although such costs can be saved with the 
HLA, they are accounted for in the cost of the conventional 
^ofhods and are thus in the threshold cost outlined below. 


(4) HLA Threshold Cost 


The threshold cost for the HLA in each case will be 
the cost of the current operation minus the cost of rigging these 
components, since it was assumed that the same amount of rigging 
would be required whether the components were lifted by the HLA or 
^ • The threshold cost for each case will therefore be; 


6-23 



Case 


Total Cost 

Estimated 
Rigging Cost 

HLA Threshold 
Cost 

Case 

(1) 

$220,000 

$ 9,600 

$210,400 

Case 

(2) 

150,000 

12,800 

137,200 

Case 

(3) 

100,000 

2,400 

97,600 

Case 

(4) 

462,000 

33,000 

429,000 

(5) 

Potential Operating 

Scenario of the 

HLA 


The towers and vessels that are to be erected are lifted 
off the transportation vehicle from a horizontal position to a 
vertical position. To avoid damage to the vessel, it is rigged 
with a winch or a crane that will lift the bottom part off the 
rail/truck/barge while the HLA is used to upright the component. 


The following time requirements are estimated for vessels 
of varying sizes: 


Component Size 


Hook-up and 

Transportation Erection 

Time Time Total Time 


Less than 150 tons 
150-700 tons 
More than 700 tons 


1 hour 

2 hours 
2 hours 


1 hour 

2 hours 

3 hours 


2 hours 

4 hours 

5 hours 


The total operating time for each of the cases can thus 
be estimated to be: 


Case Total Time Required 


Case 

(1) 

Pressure vessel (200 T) 

4 

hours 

Case 

(2) 

Refinery reactor (820 T) 

5 

hours 

Case 

(3) 

Four refinery towers (50 T, 75 T, 





100 T, 150 T) 

8 

hours 

Case 

(4) 

Four petrochemical vessels (80 T, 250 T, 





260 T, 504 T) 

14 

hours 


Note that in this operation, vehicle speed is not im- 
portant since short distances are involved, combined with signif- 
icant hover time . 


ORfGS^JAL 
OF POOR 


PAGE DS 
QUALJTY 


I 


6-24 



6.4.3 Estimate of HLA Needed to Satisfy the Potential Market 


This estimate assumes four different HLA payload sizes matched 
to the components to be lifted. 

6. 4. 3.1 The Annual Market . From Section 5, the annual market is 
described as 3.3 x 10° barrels per day of added capacity worldwide. 


6.4. 3.2 Required HLA Capabilities . The case study typifies the 
HLA task by four separate payload requirements (200T, 820T, 150T, 
and SOOT) with a need for hover capability, forward speed being 
relatively unimportant. These four payload lifts are needed to 
satisfy the building of a refinery addition of approximately 20,000 
bbl/day. The total operating time for each payload size consists 
almost entirely of hover or low-speed operations, and is as stated 
in the previous section. 

6. 4. 3. 3 "No-Ferry" Number of Vehicles, N . Total number of each 

''nf 

payload size to satisfy 100 percent of the market 


(refinery additions per year) (operating hours per addition) 
annual utilization per vehicle 


/ 33x106 \ 
V20,000 / 


■ 4‘ 



5 

/ 

1000 

8 

/ 

2000 

14 

/ 


_ 




for payloads of 


200 

820 

150 

504 


tons , 


as given in Table 6-8 below: 


TABLE 6-8. No- Ferry Number of Vehicles for 100% of the 
Refinery Market 


MAX PAYLOAD (TONS) 

200 

820 

150 

504 

N\/ 

ANNUAL 

1000 

1 

1 

2 

3 

^NF 

UTILIZATION 

2000 

1 

. 

1 

1 

2 


6-25 














6 . 4 . 3. 4 


”No-Ferry” Share of the Market, The total threshold 

cost (per 20,000 bbl/day added capacity) is, from the previous sec 
tion, 50.874M. 

The total average HLA cost (to support the addition of 20,000 
bbl/day capacity) is $0.750M. 

The market share factors are 

A = 22.5 B = 50 

Thus from the expression derived earlier 



.750 

.874 

50 


j X 100 
- 2 2.5 


22.5 


100 


= -30.2 = 0 


Note that if the job cost of the HLA can be reduced to $0.437M 
(a reduction to 58 percent of the average value used) Figure 6-3 
indicates how the estimated HLA cost varies with the scenario param- 
eters of hover time and payload, illustrated for initial values as 
indicated by the baseline and case run. 

Calculation of ferry effect is unnecessary, since the possible 
numbers are small. 


F IG U R E 6-3. Sensitivity of H LA Costs to Scenario Parameters 

(Construction of Oil Refineries and Petrochemical 
Plants) 





6-26 




I 



6.5 Case Study No. 2 

Construction of Offshore Oil and Gas Production Platforms 

6.5.1 Current Operations 

The principal areas of oil and gas activities offshore are: 

Exploration and drilling 
Production platform construction 
Production. 

For the two principal activities, exploration and drilling and 
- production, a lot of equipment and supplies are brought in which 

are all transported by supply vessels at low cost and lifted on- 
board by small cranes installed on the platform. The charter cost 
for these supply vessels, which have cargo carrying capacities 
ranging from 800 to 2000 tons and speeds of approximately 14 to 16 
knots, ranges from $2,000 to $3,000 per day depending upon the 
' market conditions. Under normal circumstances, the HLA concept 

will not be economically competitive with these vessels. A 
limited opportunity might be presented for the HLA to supply 
spares and replacement components in emergencies. Work stoppages 
on offshore drilling and exploration and production platforms are 
very costly and the HLA may be employed to supply vital parts, 
despite its higher cost of operation. Such emergencies are 
I infrequent, and according to experts familiar with offshore opera- 

tions, would occur once or twice annually in each major offshore 
production area (e.g., Gulf of Mexico, North Sea, etc.). 

The major potential use for the HLA in this market is in 
support of the construction of fixed production platforms. This 
case study is therefore devoted to a discussion of the opportun- 
ities presented to the HLA in this market segment. 

6. 5. 1.1 Production Platform Construction . There are three dis- 
tinct phases in the construction of offshore platforms: 

Placement and precise positioning of the jacket 
Driving of the piles 

. Placement of the deck sections and structures. 

^ For the construction of an offshore oil and gas production 

platform the services of a crane barge are required. The crane 
barges have lifting capabilities typically ranging from 500 to 
1000 tons. Crane barges with lifting capabilities of less than 
500 tons and more than 1000 tons are also available. In addition 


6-27 



to lifting heavy components and equipment, the crane barge is 
used as a base of operation for platform construction and provides 
the following services: 

. Accommodation for crew 

. Storage of equipment 

. Work and maintenance shop 

- Communications center 

. General support platform. 

It should be noted that the maximum capacity of the crane is 
normally used only four to five times during the entire con- 
struction period of 60 days. The remainder of the lifts range up 
to 150 tons. 

The cost of a 500-ton crane barge with a crew of 60 men is 
approximately $60,000 per day. This cost may vary greatly de- 
pending upon the supply and demand in the marketplace. Position- 
ing cost with a skeleton crew (i.e., crew required for barge 
operation only) will average $50,000 per day. The cost of the 
construction crew is therefore $10,000 per day. The positioning 
speed is 5 to 6 knots. 

The design and construction of the modules and components 
are to a large extent based upon the lifting capability of the 
crane barge that will be available for the job. 

Phase 1; Emplacement of Jacket 

The jacket is normally constructed ashore and skidded 
onto a deck barge for transportation to the platform site. The 
size of the jacket is heavily dependent upon the depth of water. 

The size of the overall production platform could range from 
1,000 tons up to 40,000 tons (dry) steel weight. 

At the platform site the jacket is skidded off the 
barge, uprighted through the use of ballast and correctly posi- 
tioned on the ocean bottom. The crane on the crane barge assists 
in the positioning of the jacket. The actual emplacement procedure 
requires 8 to 12 hours of crane service. 

Phase 2 I Pile Driving 

This phase takes approximately 20 days. During this 
period the crane is used to lift the pile driving hammers and to 
position the steel piles. The driving hammers can weigh up to 
150 tons. The piles are inserted through the legs of the jacket, 
welded together and driven down with the driving hammers. 


6-28 



Phase 3; Positioning of Deck Sections 


The deck sections are prefabricated and assembled ashore. 
Due to the economics of preassembly, the sections are designed to 
conform to the maximum lifting capability of the crane available at 
the work site. Typically, two deck sections weighing 500 tons each 
are required to be transported to the site and lifted onto the 
jacket. In addition, one or two prefabricated modules or struc- 
tures weighing 500 tons each need to be transported to the plat- 
form. All these structures are currently placed on deck barges and 
moved out to the platform site, where they are lifted onto the 
jacket structure using the barge mounted crane. One critical 
factor in the positioning of the modules is the impact velocity of 
the deck sections when placed on the jacket. Currently the velo- 
city can be no greater than a few inches per second. This requires 
calm seas and limited winds. During adverse weather conditions the 
barges with the sections may remain idle for extended periods. 

Total crane time required during this phase is 8 to 12 
hours for each heavy item of which 1 to 2 hours is actual lifting 
time. Typical charter cost for the large deck barges and the 
powerful tugs required to transport the deck section and modules to 
the platform site is: 

. 250 feet x 75 feet deck barge: $l,500/day 3600 hp 

tug for above: $3,500/day 

400 feet x 100 feet deck barge: $4,000 to $5,000/day 

4800 hp tug for above: $4,800/day. 

Some rules of thumb used in the industry are: 

. Charter cost for tugs normally is $1 dollar per 

horsepower per day. A 3600 horsepower tug therefore 
costs an average of $3,600 per day. 

Charter cost for a deck barge is normally one- 
thousandth of the capital cost per day. A barge 
built for $1.5 million will therefore charter for 
$1,500 per day and a $4 million barge will charter 
for $4,000 per day. 

The supply/demand balance in the marketplace will cause 
fluctuations around these values. In the summer, when demand is 
high and equipment becomes scarce, prices tend to go up, and con- 
versely, in the winter, the prices go down due to low demand. 

Under normal conditions the tugs are able to push the 
loaded barges at speeds up to 7 knots. The barges and tugs are 
normally sitting at the job site for three days, and transit time 



ranges from 2 to 10 days depending on the distance between the base 
and the job site. It should be noted that foul weather may seri- 
ously delay both the transportation to the site and the positioning 
of the modules on the jacket. Such conditions, which are not 
infrequent in the offshore area, will increase the time for which 
the barges are under charter, and consequently, the cost. 

The jacket is normally carried on one barge and the deck 
sections and the other modules on another. Piles for the pile 
driving barge are either carried on the barge carrying the jacket 
or on a separate barge. 

6.5.2 Potential HLA Applications 

There are two possible scenarios for the use- of the HLA: 

. The HLA is used to lift the deck sections and modules 
from the deck barge and position them on the platform 

The HLA is used to transport the deck sections and 
modules from place of production ashore to the platform 
site, and position them directly on the platform jacket 
or deck. 

6. 5. 2.1 Application 1: Positioning of Modules . One of the major 

costs incurred during the construction of an offshore production 
platform is the chartering of a crane barge. The larger the capac- 
ity of the crane, the higher the cost. Therefore, if it is pos- 
sible to substitute a smaller crane barge with a smaller crane, 
cost savings can be achieved. 


(1) Scenario 

Since the maximum lifting capability is required only 
four to five times during the 60-day construction period, all other 
lifts never exceed 150 tons, the following hypothetical scenario is 
construed: 

. The 500-ton crane barge is replaced with a crane 
barge with a lift capability of 75-150 tons 

. A 500-ton HLA is brought in to perform the lifts 

above 150 tons, i.e., five lifts during the first 30 
days of the 60-day construction period. 


I 


6-30 


ORiGlNAL PAGE I 
OF POOR QUALITY 



(2) Assumptions 


It is assumed that the annual costs of the crane barges 
are as follows : 


. 500 to 1,600-ton crane barge: $40,000 to $60,000 

per day 

. 150 to 350-ton crane barge: $20,000 to $34,000 per 

day. 

The approximate costs for crane barges in the Gulf of Mexico area 
were obtained from two different sources. These costs include 
rugs, a full construction crew and crew accommodations. Thus, all 
types of barges provide the identical support functions with the 
exception of the crane. 

Other assumptions include: 

. The two deck sections and the two modules are 

placed on the jacket in two successive operations 

. All necessary rigging both on the jacket and the 

modules has been performed by the construction crew 
prior to the arrival of the HLA. 

This preparatory rigging includes: 

. All arrangements for hook-up to the HLA. 

. All arrangements both on the module and on the 

jacket/deck to allow the riggers to control or winch 
the module down onto the jacket or deck. The HLA 
will have only limited hover time while the pre- 
arranged rigging is set up. 

. The distance from shore to the site ranges from 70 
to 200 nautical miles. 

. Total time for construction is 60 days, during which 
the crane barge is sitting at the site. 


(3) Potential Cost Savings with HLA 

The cost savings under this scenario is the difference 
between the two cranes. The potential range in saving per day of 
construction is therefore the difference in cost between the 500 
to 1600-ton crane barge and 150 to 350-ton crane barge. This 
difference is; 


6-31 



. 500 to 1600-ton crane barge from $40,000 to $60,000 

per day 

. 150 to 350-ton crane barge from $20,000 to $34,000 

per day 

. Potential saving per day is from $6,000 to $40,000. 

Total savings over the 60-day construction period can therefore 
range from $360,000 to $2.4 million. 


(4) HLA Threshold Cost 

The threshold cost of the HLA in this case is expected to 
be equal to the potential savings from the trading down of the 
crane barges, i.e., $360,000 to $2.4 million. 


(5) Potential Operating Scenario for HLA 

The HLA has to be used in support operations during 
Phases 1 and 3 . 

Phase 1 

The HLA is used as a complement to the crane to position 
the jacket: 


• 

Ferry to site, 

70 to 200 miles: 

Fast 

Slow 

HLA 

HLA 

1-3 

4-10 

hours 

hours 


Assist in positioning 
the jacket 



3-5 

hours 

• 

Ferry to base: 

Fast 

Slow 

HLA 

HLA 

1-3 

4-10 

hours 

hours 

• 

Total time: 

Fast 

Slow 

HLA 

HLA 

5-11 
11 - 25 

hours 

hours 


Phase 3 

The following operations will have to be repeated twice: 


6-32 



Ferry to site, 

70 to 200 miles: 


3 hours 
10 hours 


Fast HLA 1 - 
Slow HLA 4 - 

Lift & position sections, 
total times for each section. 



1-2 hours: 



2-4 

hours 

• 

Ferry time to base: 

Fast 

Slow 

HLA 

HLA 

1-3 

4-10 

hours 

hours 

- 

Total for each 
operation : 

Fast 

Slow 

HLA 

HLA 

4-10 
10 - 24 

hours 

hours 


Since it is assumed that the two deck sections and the two other 
modules will be attached during two separate operations, the total 
estimated time will be 8 to 20 hours for fast HLA, or 20 to 48 
hours for slow HLA. 

Thus, total operating times for the HLA in this applica- 
tion is expected to be 13 to 31 hours for fast HLAs, or 31 to 73 
hours for slow HLAs. 

6. 5. 2.2 Application 2: Transportation of Modules to Site . Cur- 

rently the jacket, pilings, deck sections and additional modules 
are transported from the shore fabrication and supply base to the 
offshore platform site using deck barges and tugs. This equipment 
is relatively expensive and the transit time is slow. It therefore 
might be possible for the HLA to compete with the barges and tugs 
due to the higher productivity of the HLA. 


(1) Scenario 

In addition to the previously described scenario the HLA 
replaces the deck barges and the tugs for the transportation of the 
four 500-ton modules from the construction base to the production 
site. The jacket and pilings will still have to be transported in 
the conventional manner. 


(2) Assumptions 

All the assumptions remain the same as in the previous 
application. In addition, the following assumptions are made: 


« 


6-33 



All preparatory rigging is performed by the con- 
struction crew at the construction site. The HLA 
can therefore hook up the load with minimal hovering 
time. 

The four modules are airlifted and emplaced at the 
construction site in two operations with two con- 
secutive trips in each operation. 


(3) Potential Cost Savings with HLA 

The cost saving described in the previous section from 
using a smaller crane barge is still applicable. However, addi- 
tional direct savings will be possible by eliminating one of the 
deck barges and one tug. 


(4) HLA Threshold Cost 

The cost of the current operation that the HLA could 
replace is estimated to be: 

. Small deck barge used for operation: 

255 ft X 75 ft barge/day $1500 
3600 hp tug/day $3600 
Total cost per day $5,100. 

. Large deck barge used for operation: 

- 400 ft X 100 ft deck barge/day $4000 

4800 hp tugboat/day $4800 
Total cost per day $8800. 

70 miles 200 miles 



Offshore 

Offshore 

Small barge, positioning/ 
loading time, 1 day 

$ 5,100 

$ 5,100 

Round transit time, 7 knots 

4,100 

12,000 

Waiting time at site, 3 days 

15,300 

15,300 

Total cost 

$24,500 

$32,400 


6-34 


I 



70 miles 200 miles 



Offshore 

Offshore 

Large barge, positioning/ 
loading time, 1 day 

$ 8,800 

$ 8,800 

Round trip transit time, 
7 knots 

7,400 

21,000 

Waiting time at site, 
3 days 

26,400 

26,400 

Total cost 

$42,600 

$56,200 


The threshold cost will be the cost saving from the trading 
down of the barge plus the above costs of the current operations. 


(5) Operating Scenario 


Two consecutive trips will be required, each as follows: 

. Rigging and loading at 

shore construction site 1 hour 


Transportation to offshore 
base 


Fast HLA 1-3 hours 
Slow HLA 3-8 hours 


Positioning of sections on 
jacket 


1-2 hours 


Return to shore construction 
base 


Fast HLA 1-3 hours 
Slow HLA 3 - 8 hours 


Total time required per trip. Fast HLA 4-9 hours 

Slow HLA 8 -19 hours 


6.5.3 Estimate of HLAs Needed to Satisfy The Potential Market 

6. 5. 3.1 The Annual Market . From Section 5, the annual market is 
represented by the construction of from 50 to 150 new platforms 
per year. 

6. 5. 3. 2 Required HLA Capacities . Based on the case study, sup- 
port of one platform will require one SOOT payload HLA which will 
both transport modules and hover to aid in positioning deck 
modules. The required job times were given in the previous 


6-35 


ORIGINAL PAGE IS 
OF POOR QUALITY 



section for a typical rig construction/ and consist of round trip 
transportation from 70 to 200 miles offshore/ together with hover 
at the drilling to assist in positioning. 


6 5 3 3 "No-Ferry" Number of Vehicles, N,, . Total number of 

— — 


500-ton payload vehicles to satisfy 100 percent of the market 


^Rigs 


constructed\ /Operating hours 
per year /\ per rig 


)/(- 


Annual 


Utilization) 


as shown in Table 6-9. 


TAB LE 6-9. No- Ferry Number of Vehicles to Satisfy 100% of the 

Offshore Drilling Rig Market 


AV. HLA SPEED (MPH) 

25 



61 

3 

OFFSHORE DISTANCE <MI.) 

70 

200 

70 

200 

TOTAL HLA OPERATING HOURS PER PLATFORM 

46.2 

111 

21.7 

50.3 



50 


1,000 

3 

6 

2 

3 





2,000 

2 

3 

1 

2 


PLATFORMS 









PER 

too 

ANNUAL 

1,000 

5 

12 

3 

6 

''nf 

YEAR 


UTILIZATION 










2,000 

3 

6 

2 

3 



150 


1,000 

■ 

17 

4 

8 





2,000 

■ 


2 

4 


6. 5. 3. 4 "No-Ferry" Share of the Market , The total threshold 

cost per rig is, from the previous section, a function of the cost 
of the barge that is eliminated by using the HLA. The total HLA 
cost to support construction of a rig is a function of the required 
HLA capabilities previously outlined. The market share factors 
are A = 20 and B = 50. Thus from the expression derived earlier, 
the market share is given in Table 6-10. 

6. 5. 3. 5 "No-Ferry" Number of Vehicles for Market Share . From the 
previous two tables, the number of vehicles can be defined to sat- 
isfy the market, assuming no ferry. (Table 6-11) 


6-36 





























TABLE 6-10. HLA Market Share for Offshore Drilling Rigs 


AV. HLA SPEED IMPH) 

25 

60 

OFFSHORE DISTANCE (Ml.) 

70 

200 

70 

200 

TOTAL AVERAGE HLA JOB COST ($M) 

.998 

1.739 

.671 

1.311 



13.6 


.84 

0 

0 

0 

0 



20.8 


1.25 

0 

0 

81.6 

0 


BARGE 

22.4 

THRESHOLD 

1.34 

12.2 

0 

100 

0 

“nf 

SAVINGS 

27.6 

COST 

1.64 

52 

0 

0 

0 

PER 

33.9 

PER 

2.0 

100 

0 

100 

36.7 


RIG 

37 

RIG 

2.17 

100 

0 

100 

54.4 


l$K) 

44.8 

($M) 

2.62 

100 

34.3 

100 

100 



59.8 


3.48 

100 

100 

100 

100 


TABLE 6-1 1. No-Ferry Number of HLA to Satisfy the Drilling 
Rig Market 


AV. HLA SPEED (MPH) 

25 

60 

OFFSHORE DISTANCE (Ml.) 

70 

200 

70 

200 

MARKET SHARE (%) 

0 

50 

100 

0 

13 

0 

50 

100 

— 


72 

BARGE SAVINGS IMIN. 6. MAX. 40) l$K) 

20.B 

27.3 

33.9 

37 

40 

13.6 

18 

22.4 

27.6 

36.1 

40 



50 


1,000 

■ 

2 

3 

■ 

B 

■ 

1 

2 

B 

2 

2 


PLATFORMS 


ANNUAL 

2,000 

B 

1 

2 

B 

1 

B 

1 

1 

B 

1 

1 

''nf 

PER 

100 

UTILIZATION 

1,000 

B 

3 

5 

fl 

2 

B 

2 

3 

B 

3 

4 


YEAR 


(HRS.) 

2,000 

B 

2 

3 

B 

■ 

B 

1 

2 

B 

2 

2 



150 


1,000 

B 

4 

■ 

B 

3 

B 

2 

B 

B 

4 

6 





2,000 

B 

2 

B 

B 

2 

B 

1 

B 

B 

2 

3 


Since the number of vehicles are small, the effect of ferry 
is unimportant. 


6-37 










































































6.6 Case Study No. 3 

Transportation of Power Shovels Used in Strip Mining 

6.6.1 Current Operations 

Power shovels used to extract coal, iron ore and other natural 
resources in surface mining operations require transportation 
under the following circumstances; 

. Delivery of a new shovel to a mining site 

. Delivery of used shovels sold or transferred to another 

mine site 

. Local shifting of shovel within a mine site. 

Each of these transportation requirements is discussed below. 

6. 6. 1.1 Delivery of New Shovels . The power shovels are assembled 
and tested at the factory prior to shipment to ensure that every- 
thing is operating properly. Fully assembled, a typical intermed- 
iate size power shovel weighs approximately 1.2 million pounds or 
600 tons and costs close to $1 million. Due to its enormous 
dimensions the shovel has to be disassembled for transportation by 
rail or truck. According to a representative of Marion Power 
Shovel Co. of Marion, Ohio, the cost of disassembling the shovel 
to components and to prepare these components is approximately 
$15,000. The average domestic shipping cost of the components by 
rail is $3,000 plus $21 per mile for an intermediate size power 
shovel. 

At the destination the shovel has to be reassembled under 
field conditions. Several of the components have to be shipped 
completely knocked down due to the clearance limitations imposed 
by the railroads. Therefore, a lot of welding of components has 
to be performed in the field. The total cost of erection averages 
$100,000 and takes two to three weeks. The total cost of dis- 
assembly at the factory, transportation and assembly in the field 
is an average of $163,000. 

6. 6. 1.2 Delivery of Used Shovels Sold or Transferred to Another 
Mine Site . Most power shovels are dedicated to one mine site in 
their entire economic life. Occasionally, shovels are replaced 
with new equipment, sold or transferred to another mine site. In 
such a case the shovel has to be broken down into components that 
can be transported by either truck or rail, transported to the new 
site and reassembled. The cost of the disassembly and assembly 
averages $50,000 to $60,000 according to a representative of Mesabi 
Service and Supply Company of Ribbing, Minnesota, which is a major 


6-38 



dealer in new and used strip mining shovels. Transportation cost 
by truck or rail is extra. The total time required for the dis- 
assembly, transportation and assembly at the new site under optimal 
conditions would be two to three weeks. Time intervals of six 
weeks between start of disassembly and completion of assembly are 
not uncommon . 

These shovels are delivered to all major mining sites in the 
U.S. and Canada. 

6. 6. 1.3 Local Shifting Within Mine Site ; The power shovels are 
equipped with crawlers to move at slow speed within the mine site. 
Occasionally the option is selected to move the shovel to avoid 
natural obstructions or to position it at a new seam. If this 
move is entirely within the compound, it is accomplished by using 
a large truck trailer. According to Mesabi Service and Supply Co. 
the move is normally completed within two to three hours at a cost 
of $250 per hour. 

If the local move requires transportation over official roads 
no matter how short the distance, the entire shovel has to be 
disassembled, loaded on trucks and reassembled at the new site at 
a cost of $50,000 to $60,000. Operators try to avoid such an 
occurrence, but occasionally it is necessary in order to position 
the equipment. 

6.6.2 Potential HLA Applications 

A power shovel would be at best cumbersome and at worst 
impossible to transport as one piece using any conceivable method. 
According to Mr. Tod Pillow of Marion Power Shovel Co., a typical 
intermediate size shovel could be conveniently transported as 
three components with an HLA. These components are: 

. Boom and handle, weight: 100 tons 

Upper frame, weight: 250 tons 

. Lower frame, weight: 150 tons. 

The total tim.e for disassembly and assembly could then be cut from 
two to three weeks to a maximum of two days and the total cost 
could be reduced to a minimum. The HLA can therefore completely 
change the way the power shovels are transported currently, and it 
can be used both to transport new and used equipment. 


6-39 



6. 6. 2,1 Application 1; Delivery of New and Shifting of Used 
Shovels . Shovels that currently have to be disassembled at the 
factory for shipment after having been tested can be knocked down 
to three major components rather than many smaller components. 


(1) Scenario 

A major manufacturer of power shovels shipping equipment 
to all major mining sites has decided to investigate the possibil- 
ity of shipping the shovels as three major components with a HLA 
rather than as a multitude of small components using rail or 
truck . 


(2) Assumptions 

The following assumptions are made; 

The HLA components are rigged and prepared for lift 
by employees of the shovel manufacturer 

. The necessary rigging on the ground at the mine 
site is performed by the personnel of the mine 
operator 

. The average cost of $3,000 plus $21 per mile is 

representative of the cost of rail transportation 
for the typical SOOT shovel transported. 


(3) Potential Savings with HLA 

The major realized savings that can be achieved with the 
HLA is that the machine can be shipped and received virtually 
fully assembled. A representative of Marion Power Shovel Co. said 
that the total disassembly cost at their plant of $15,000 could be 
saved with the HLA. He further estimated that approximately half 
of the $100,000 field erection cost could also be saved. The re- 
maining $50,000 would be required for miscellaneous work to be 
performed and additional installations required for field opera- 
tions. The total savings that can be realized in terms of dis- 
assembly and assembly cost is therefore $65,000 per power shovel. 

In terms of a used shovel, less work is required for its 
disassembly for shipment and reassembly at the new site. Virtually 
all of the $50,000 to $60,000 cost of disassembly and reassembly 
can be saved by separating the shovel into three pieces for ship- 
ment. In addition, savings can be realized if a company can use 


6-40 



the additional time made available by having the shovel delivered 
assembled in three pieces rather than in components. 

In an iron ore strip mining operation in the midwest, an 
intermediate shovel can dig approximately 12,000 tons of crude 
product per day. Out of these 12,000 tons, 1/3 or 4,000 tons of 
ore are extracted. This ore sells for $35 to $38 per ton, and a 
reasonable estimate of profit is $2 to $3 per ton. If the time of 
disassembly, transportation and assembly of the shovel could be 
reduced from two weeks to two days and the time saving could be 
used for full production, gross revenues of $1.68 million to 1.824 
million or net profits of $96,000 to $144,000 could be realized. 

The stripmining of coal and other resources differs 
somewhat from that of iron ore. It is expected, however, that the 
magnitudes of the potential savings will be similar to those that 
can be achieved by an iron ore operation if conditions are such 
that the additional productive time of the shovel resulting from 
HLA use could be utilized for full production. 


(4) HLA Threshold Cost 

The cost of transportation of a shovel to the typical 
destination is $3,000 plus $21 per mile. The shovel weighs 1.2 
million pounds. Total transportation cost over 1,600 miles is 
therefore $36,600. The savings associated with not having to 
disassemble a shovel for shipment and then reassemble at the site 
are $65,000 for new shovel and $50,000 for a used one. The thres- 
hold cost is therefore $101,600 for transporting a new shovel and 
$86,600 for a used shovel. 

If the mine operator could realize the benefit of having 
the shovel in production for the time saved by the HLA over the 
time required for a field assembly, the threshold cost could 
potentially be considerably higher. 


(5) Potential HLA Operating Scenario 

The HLA will have to make three round trips and also 
assist in the assembly at the site when all components have been 
brought to the site. It is expected that total hovering time at 
both origin and destination to disassemble and assemble will be 
one hour . 


6-41 


ORiGsWAL PAGE 
OF POOR QUAUTY 


6.6.3 Estimate of HLA Needed to Satisfy the Potential Market. 


6. 6. 3.1 The Annual Market . From Section 5, and the case study, 
the annual market is represented by the movement of 95 6 00- ton 
shovels per year. 

6. 6. 3. 2 Required HLA Capabilities per Platform . Based on the 
case study, transportation of one 600-ton shovel will require one 
250-ton payload HLA to make three round trips, over round trip 
distances that may be anywhere from 10 to 1,000 miles. No hover 
time is required. 

6. 6. 3. 3 ”No-Ferry" Number of Vehicles, N, . Total number of 

NF 

250-ton payload vehicles to satisfy 100 percent of the market 

/Shovels movedN /Operating hours \ //annual utilization) 

\ per year /Vper shovel moved// \ / « 

as shown in Table 6-12. 


TABLE 6-12. No-Ferry Number of Vehicles to Satisfy 100% of the Strip Mining Market 


AV. HLA SPEED <MPH) 

25 

60 

no. TRIP DISTANCE (Ml.) 

50 

100 

150 

100 

150 

200 

250 

TOTAL HLA OPERATING 
HOURS PER PLATFORM 

6 

12 

18 

5 

7.5 

10 

12.5 

''nf 

ANNUAL 

UTILIZATION 

1.000 

2.000 



1 

1 , 

2 

2 

1 

1 

1 

1 

1 

1 

1 

2 

1 


6. 6. 3. 4 "No-Ferry" Share of the Market , From the two prev- 
ious sections, the total threshold cost per movement is a function 
of the round trip distance, whether a new or an old shovel is being 
transported, and the profit to be gained when the time saved is put 
to production use. The total HLA cost to effect movement of a 
shovel is a function of the total movement distance and speed. The 
market share factors are A = 12.5 and B = 37.5. Thus from the ex- 
pression derived earlier, the market share is as given in Table 6-13. 


6-42 


I 



TABLE 6-13. No-Ferry HLA Share of the Strip Mining Market 


AV. HLA SPEED IMPH) 

25 

60 


RO. TRIP DISTANCE (Ml.) 

50 

100 

150 

100 

150 

200 

250 

THRESHOLD 
UNIT COST 

OLD 

SHOVEL, 

LOW 

PROFIT 

.153 

.154 

.155 

.154 

.155 

.156 

.157 

<$M) 

NEW 

SHOVEL, 

HIGH 

PROFIT 

.216 

.217 

.218 

.217 

.218 

.219 

.220 

AV. HLA UNIT J 

OB COST ISM) 

.088 

.176 

.264 

.0790 

.1185 

.158 

1 

.1975 


OLD 

SHOVEL, 

LOW 

PROFIT 

100 

0 

0 

100 

44 

0 

1 

1 

^ 0 

Nf 

NEW 

SHOVEL 

HIGH 

PROFIT 

100 

26 

0 

100 

100 

62 

1 

: 0 

1 


6. 6. 3. 5 ''No-Ferry" Number of Vehicles for the Market Share . From 
the previous two tables, the number of vehicles can be defined to 
satisfy the market, assuming no ferry. (Table 6-14) 

TABLE 6-14. No-Ferry Number of Vehicles to Satisfy the HLA 
Share of the Strip Mining Market 


AV. HLA SPEED (MPH) 

25 

60 


RD. TRIP DISTANCE (Ml.) 

50 

100 

100 

150 

200 


OLD 

SHOVEL, 

ANNUAL 

UTILIZATION 

1,000 

1 

0 

1 

1 

0 

Ny 

''nf 

LOW 

PROFIT 

(HRS) 

2,000 

1 

0 

1 

1 

0 

NEW 

SHOVEL, 


1,000 

1 

1 

1 

1 

1 



HIGH 

PROFIT 


2,000 

1 

1 

1 

1 

1 


Since the number of vehicles required is small, the effect 
of ferry is unimportant. 


6-43 





6.7 Case Study No. 4 
Power Transmission Line Construction 

6.7.1 Current Operations 

This case is based upon the construction of the hypothetical, 
but typical, 60-mile 750 KV power transmission line. The 60-mile 
length of the typical power line is the length of line that can be 
constructed within one year by the company providing most of the 
data in this case study. 

In the typical construction job, there are three distinct 
phases; 

. Phase 1 - Construct tower foundations. Time required: 

3 months 

. Phase 2 - Construct and install towers. Time required: 

8 months 

Phase 3 - Stretch cable. Time required: 1 month. 

6. 7. 1.1 Phase 1: Construction of Tower Foundations . During this 

phase, three bulldozers with operators work full time to clear 
access roads to the right-of-way and to provide access to the tower 
sites. Once a road is cleared earthboring machines or shovels 
weighing approximately 20 to 25 tons each are brought to the site 
on flatbed trailers. The trailers are used to transport these 
machines from site to site. 

The cost of a bulldozer with operator is $50/hour or $400/ 
day. The cost of the flatbed truck with operator is estimated to 
be $250/day. 

At each tower site, concrete is needed. The total requirement 
for concrete is approximately 12 cubic yards. There are four bases 
at each site for a total requirement of 48 cubic yards of concrete. 
The average density of concrete is 144 pounds per cubic foot or 
3,888 pounds per cubic yard. Thus, a total of approximately 93 
tons of concrete is required at each site. The capacity of a 
concrete truck is 9 cubic yards and it is used by suppliers of the 
concrete to truck the concrete to the site. It has been indicated 
by concrete suppliers that there would be no difference in the 
price whether the concrete is delivered to the staging area or to 
the site of the foundation itself. The contractors contacted 
commented that delivery to the staging area might complicate rather 
than facilitate the pouring of the concrete. 


6-44 



On the average, four to five foundation sites are built per 
mile of line. The rate at which the foundations could be built 
varies greatly with the terrain. In flat country 30 foundations 
could be built per week while in mountainous terrain it would be 
difficult to build more than four foundations per week. On the 
average, approximately 20 foundations are completed per week. 
Staging areas for supplies and equipment are normally cleared every 
seven to eight miles along the line. 

6. 7. 1.2 Phase 2; Construction and Installation of Towers . 

During this phase of construction the towers are preassembled at 
the staging areas to the extent possible with the limitations 
imposed by the flatbed trucks used to haul them to the site. These 
structural modules are then hauled to the site by the flatbed 
trucks, lifted into place by a mobile crane and assembled by the 
field crew. 

The crane used for this purpose normally has a lifting capac- 
ity of 45 to 75 tons. The cost of the crane, according to Hoosier 
Engineering, of Columbus, Ohio, is $67/hour, plus an operator at 
$18/hour. This crane has to be used during this entire phase. In 
addition, a number of smaller cranes are required. 

Midland Construction Company estimates the total time of hand- 
ling the structural steel for the towers at the staging area and 
hauling to the site at 1.5 man-hours per ton of steel. The cost 
per man-hour of field labor is $28 or a total of $42 per ton of 
steel. Approximately half of this amount, or $21 per ton, is 
estimated to be the hauling cost from the staging area to the site. 
The cost of transporting the steel for a 25-ton tower between the 
staging area and the site is therefore approximately $525. 

Midland Construction Company had figures indicating that a 
7.8-ton tower required 170 man-hours of field labor to construct, 
and that a 18.76-ton tower required 250 man-hours of field labor. 
The cost is $28 per man-hour. The total cost in terms of manpower 
for a 25-ton structure is therefore in excess of $7,000. 

Over the past few years, the Sikorsky S-64 Skycrane has been 
used in the emplacement of towers. The lifting capacity of the 
Skycrane is limited to 12 tons. In cases where the towers weigh 
more than this, the lower section of the towers is assembled in a 
conventional manner, while the upper section of the towers is 
assembled at the staging areas. 


6-45 



The latter is the case in a project undertaken by Evergreen 
Helicopters in May 1978. In this project the Skycrane set the 
towers on a 175-mile 350 KV line stretching between Breckenbridge , 
Minnesota to Buffalo, Minnesota, south of St. Cloud, Minnesota. On 
this stretch the helicopter will set 650 towers. Each tower weighs 
24,000 pounds and is 180 feet high. Due to the limits on the lift- 
ing capability of the Skycrane, the contractor has had to set the 
bottom half of the towers 90 feet high and 12,000 pounds using 
conventional cranes, while the helicopter will set the top half 
(90 feet and 12,000 pounds.) 

Evergreen has based its project cost estimate on the expec- 
tation that the helicopter will be able to place an average of four 
towers per hour, i.e., 15 minutes per tower. The range will vary 
from 3 to 8 in an hour depending upon the terrain and the condi- 
tions. The average round trip distance between staging/assembly 
area and the tower foundation is 2.5 miles. 

Harold Symes of Evergreen mentioned, however, that if he had a 
machine available that could lift the whole tower rather than only 
the top, he anticipated that he could easily increase his produc- 
tivity to placing one tower every eight to ten minutes. This is 
based on his experience in Quebec, Canada, on a 750 KV line, where 
he placed the whole tower in one operation. The towers in this 
operation were of an unusual configuration, and were considerably 
lighter than the conventional types of towers. 

6. 7. 1.3 Phase 3: Stretching Cable . This phase of the operation 

commences as soon as the towers are up, and is completed on an 
average of one month after the last tower is constructed. 

The conventional method of stretching the lead line for the 
wire is to use a bulldozer. Lately, small helicopters are increas- 
ingly used for this operation. Four miles of wire are normally 
stretched at a time using one wire stretching machine weighing 
approximately 50 to 55 tons at each end. Normally, it takes ap- 
proximately 14 days to stretch 4 miles of wire, after which one of 
the machines is moved in a hop-skip fashion 8 miles to the next 
site. The machines are moved on flatbed trailers. 

Wire is stored at each staging area. Fifty-two reels of wire 
are needed for a 60-mile stretch of 750 KV line. Each reel weighs 
about 9 tons. The wire is currently transported from the marshall- 
ing yard to the site by trucks. 


6-46 



6.7,2 Potential HLA Applications 


It has been indicated by W.F. Hilsman, president of Hoosier 
Engineering Company of Columbus, Ohio, one of the major power line 
construction companies in the U.S., that the use of an HLA in power 
transmission line construction could have several benefits: 

Shorten construction schedule for the typical 60-mile 
line. It would be reduced from 1 year to 9 to 10 months 

. Render construction environmentally acceptable 

. Reduce costs compared to conventional construction. 

Overall, he foresaw that the HLA could radically alter the way 
that power transmission line construction is currently being per- 
formed . 

The HLA is expected to have extensive application in Phase 2 
of the construction, where it can assist in both reducing the time 
for construction and saving construction cost. In Phases 1 and 3, 
it is doubtful that the HLA will be useful because the cost of the 
HLA will far outweigh the potential savings of the equipment that 
it can replace. The cost of the equipment replaced, i.e., bull- 
dozers for road construction and flatbed trucks for equipment 
transportation possibly will account for $30,000 to $40,000 of the 
total cost. No or minimal savings will be achieved by delivering 
the concrete to a central staging area rather than directly to 
foundation site. During Phase 1, foundations for a total of 240 
towers are constructed. Thus, the earthboring equipment has to be 
positioned a total of 240 times during a three-month period. 

During the same period more than 20,000 tons of concrete have to be 
transported to these sites. It has been indicated by concrete 
contractors that delivery of concrete to a central site rather than 
the tower site will be impractical if not impossible. The problems 
are maintaining consistency of the concrete and preventing its 
settling. It will therefore only be in very special situations 
where environmental considerations or extremely difficult terrain 
prevents the use of conventional methods that the HLA may be con- 
sidered as a possibility for support in Phases 1 and 3. 

The potential for the use of the HLA in power line trans- 
mission line construction has therefore been concentrated on 
support in Phase 2 of the construction. In this phase of the 
construction, the HLA can be used to transport preassembled towers 
from staging areas to the foundations and to emplace the towers at 
the site. 


6-47 


ORIGWAL PAGE 5S 
POOR QUAL5TV 



6. 7. 2.1 Application 1 ; Transportation and Emplacement of Pre- 
asserabled Towers. Currently, the towers are assembled into modules 
to the extent possible for loading onto a truck for transportation 
to the site and for lifting into place at the construction site. 

It has been indicated that savings in cost and time can be achieved 
by preassembling the towers at the central sites for transport to 
and erection at the tower site. Until the introduction of the 
Sikorsky Skycrane helicopters, this operation was considered im- 
possible. The use of the Skycrane has shown that cost and time 
savings can be achieved. It is anticipated that the HLA can at 
least duplicate and most likely improve upon the performance of the 
helicopter due to their larger lifting capability. 


(1) Scenario 

The following scenario is assumed to exist; 

. The towers, each weighing approximately 25 tons, are 
preassembled at the staging areas by a crew of 
workers dedicated to this task 

Upon completion of the foundation work, the HLA is 
brought to the site to transport the towers to the 
foundations and emplace them at the site 

. Crews of workers working their way from site to site 
follow the progress of the HLA and bolt the towers 
to the foundations after they have been emplaced. 


(2) Assumptions 

The following assumptions are made: 

. The towers are fully assembled and rigged at the 
staging areas ready for pick up by the HLA. 

. The HLA will emplace each tower at an average dis- 
tance from staging area to foundation site of 
2.5 miles. 

. The HLA can duplicate the Skycrane hover capability 
in emplacing each tower, allowing a turnaround time 
of 3 to 5 minutes per cycle. 

. The 45 to 7 5- ton capacity crane normally brought to 
the site is not required. 


6-48 



The cost of the crane at $67 per hour, plus the 
operator cost of $18 per hour (as indicated by 
Hoosier Engineering) is a reasonable approximation 
of the cost in the industry. The total cost of the 
crane for the eight-month period required is there- 
fore approximately $108,000 (32 weeks each 40 hours 
= 1,280 hours x $85 per hour). 

The cost of $21 per ton of steel transported from 
staging area to foundation site is representative of 
the industry average. 

The manpower requirement of 250 hours of field labor 
at $28 per hour to construct a 25-ton tower is 
representative for the industry. 


(3) Potential Cost Savings with HLA 

The potential cost savings with HLA fall into two areas: 

Increased productivity and thus reduced costs of 
tower construction labor 

. Reduced field labor and financial costs through 
shortened construction time. 

The productivity of the labor force will increase sig- 
nificantly when work is shifted from the field to a central site 
with repetitive functions being performed by the same crew. Gen- 
eral Electric estimated that labor productivity would increase by a 
factor of between 1.5 and 4 when shifting electric power generating 
plant construction crews from field conditions to an industrial 
park with repetitive work functions being performed. Mr. William 
Hilsman, President of Hoosier Engineering, conservatively estimated 
that the manpower requirement can be reduced by 30 to 35 percent by 
shifting the assembly of the transmission line towers from the 
field to the staging areas. By using this estimate, the manpower 
cost of $7,000 per tower can be reduced by between $2,100 and 
$2,450. With a total of 240 towers for a 60-mile stretch, the 
savings from a manpower reduction of 30 to 35 percent could amount 
to between $504,000 and $588,000. Even with lower estimates of 
manpower reduction through productivity increases, the cost savings 
can be substantial: 


6-49 


Manpower Reduction in Percent 


Cost Savings in Dollars 


5 

84,000 

10 

168,000 

15 

252,000 

20 

336,000 

25 

420,000 

30 

504,000 

50 

840,000 


In addition to the savings as tower construction labor 
productivity increases, there will also be savings in the financing 
costs due to the shorter construction period and in the labor costs 
of the field crews that install the towers. It is assumed that a 
reasonable estimate of the cost of the 60 mile, 750 KV line used in 
this hypothetical example is approximately $20 million. The 
financial savings that can accrue due to the shortening of the 
construction period by two months (for construction costs varying 
between $10 and $30 million and cost of capital or interest rates 
of 8 to 12 percent per year) can range from $70,000 to $320,000. 


(4) HLA Threshold Cost 

The threshold cost for the HLA will be the previously 
outlined financing cost savings plus the cost of the conventional 
method of performing the task. The HLA can completely replace both 
the cost of transportation to the site and the cost of the heavy 
duty crane. The cost of these items is; 

. Hauling cost - $525 per tower x 240 

towers $126,000 

Crane and operator cost, 8-month 

period $108,000 

. Total cost of conventional method $234,000 

Even with the most conservative estimates of productivity 

increases, and financing and labor cost savings, the threshold cost 
can be more than double the above number. 


(5) Potential HLA Operating Scenario 

It is expected that the HLA can exceed the demonstrated 
mission performance of the S-64 Skycrane helicopter by emplacing 
one complete 25-ton tower each cycle, as opposed to only the top 
section of the tower. 


6-50 



Typical operating times are as follows: 


• 

Hover & pickup at 

staging 

area 


1.0 

minute 

• 

Travel 2.5 miles 

to tower 

site - Fast 

HLA 

2.5 

minutes 




- Slow 

HLA 

6.0 

minutes 

• 

Hover & emplace tower at : 

site 


2-4 

minutes 

• 

Return to staging 

area 

- Fast 

HLA 

2.5 

minutes 




- Slow 

HLA 

6.0 

minutes 

• 

Total cycle time 




8-17 

min . 


This is equivalent to 75 to 35 towers per working day, 
or a total of 3.2 to 7 days to emplace all towers. 

6-7.3 Estimate of HLA Needed to Satisfy the Potential Market 

6. 7. 3.1 The Annual Market . From Section 5, and the case study, 
the annual market is represented by the annual placement of 

. 12,800 miles of 345 KV line 

. 4,000 miles of 500 KV line 

. 570 miles of 765 KV line. 

With 4 tangent towers per mile, and 1 deadend tower to every 9 
tangent towers, on average; the deadend towers are roughly twice 
the size of tangent towers, which permits them to be carried in two 
separate parts, each requiring the same lifting capability as for the 
individual tangent towers. Thus each of the above market segments 
represents 


(4M) + jQ (4M) lifts i.e. 4.4M lifts 

where M is the number of miles. Therefore the market is as fol- 
lows : 

56,320 13T payload lifts (345 KV) 

17,600 17T payload lifts (500 KV) 

2,508 25T payload lifts (765 KV. 

6. 7. 3. 2 Required HLA Capabilities per Lift . The case study typ- 
ifies this HLA task by payload size sufficient to pick up a tangent 
tower or half a deadend tower at the staging area, transport it to 
the tower site (average 2.5 miles), place the tower in position on 
site, and return to the staging area. 


6-51 



6* 7. 3.3 *'No-Ferry*' Number of Vehicles, N 


The total number of 


vehicles required to satisfy 100 percent of the market 

= X / Lift per year \ / operating hours\ /{. n r,.. -i • 

^^^\of Payload, P, » per lift / / Utilization j 

All Payloads, P 
as shown in Table 6-15. 


TABLE 6-15. No-Ferry Number of Vehicles to Satisfy 100% of the 
Transmission Tower Placement Market 



AV. HLA SPCCO <MPH) 


AV. DISTANCE TO SITE IMILES) 


•ROUND TRIP TRANSPORTATION IMINUTfS) 


TOTAL HOVER TIME IMINUTESI 


TOTAL CYCLE TIME IMINUTESI 



13 




ANNUAL 

PAYLOAD 


UTILIZATION 

m 

17 

(HOURS) 


25 




•THE EFFECT OF ACCELERATION AND DECELERATION OF 
APPROXIMATELY 0.1G IS INCLUDED. 


6. 7. 3.4 ”No-Ferry" Share of the Market, The total threshold 

cost per tower is, from the previous section, the sum of (1) any 
cost savings resulting from shortened project time and increased 
productivity, and (2) the direct costs of performing the task con- 
ventionally. 

Financial savings from a shortened project time 
= (Interest for 12 month project) - (Interest for months) 
where is the new project time. 

This savings can be closely approximated by 



6-52 


ORIGINAL PAGE 6S 
OF POOR QUALITY 

































where is the total conventional cost cost ($) 

u 

r is the annual capital cost of money (%) 
m 

z^n is the reduction in job time with the HLA. 


Savings due to increased productivity is 


m 

100 • 


^MT * 


N 


T 


where m is the % increase in productivity with HLA 

C „ is the cost of current tower construction manpower 

($ per tower) 

is the number of towers. 

The net direct costs of performing the task conventionally 
consist of the conventional handling cost, plus the conventional 
(crane) implacement costs. These are 


'HT' 


N„, + C .M 
T o o 


where is the hauling cost per tower 

C is the crane cost per month 
o 

M is number of months of conventional task time, 
o 

The total threshold cost is the sum of all these terms, and 
comes to $.745 for a representative "baseline" set of values for 
each parameter in the above expression. The sensitivity of this 
threshold cost to possible variations in these values has been 
assessed by varying each one, one at a time, holding all others 
at their baseline value. This sensitivity is illustrated in 
Figure 6-4. Also shown are HLA threshold costs where a heli- 
copter is the competition, as discussed next. If instead of 
conventional techniques, a helicopter is used against which the 
HLA must compete, the threshold cost is different. Because of 
the payload limitations of the currently or potentially available 
helicopters*, 

. 18,8000 pounds for the S64E 

. 23,000 pounds for the S64F 

(at 2,000 feet altitude, 70°F, with crane, pickup equipment, and 40 
minutes fuel) only a portion of any of the 13T, 17T or 25T towers 
can be carried on a round trip. Thus the remaining portion 


* The S64E has been in production and could possibly be continued, while 
the S64F can go into production if orders warrant. 


6-53 



F IGURE 6-4. Threshold Cost Sensitivity (Transmission Tower Placem 


6-54 


of each tower must be carried either on a second trip, by the 
helicopter, or concurrently by ground equipment. The second 
alternative eliminates most of the project time saved by using a 
free flying vehicle, as discussed below. 

The conventional job time on the towers is assessed at ap- 
proximately 8 months for 240 towers or 30 towers per month, or 
1 tower per 8 hour shift. This involves much hauling and use of 
cranes, and assembly of components. The free flying vehicle (FFV) 
can substitute for any and all hauling and lifting within its 
payload capacity. It will lift the tower from the staging area, 
carry it to the foundation, position it on its base with the aid of 
the ground crew, release the hookup, and return, in a matter of 
minutes per tower. The constraint in the number of towers emplaced 
would be the availability of ground crew at a foundation when the 
FFV would arrive. This would be satisfied by careful planning and 
grading of trails between foundations for rapid travel by offroad 
or trail vehicles. 

However, the current experience with helicopter FFVs is to use 
them for only one small part of the operation, i.e., hauling and 
placing tower tops, while the flatbed trucks and cranes haul and 
place the tower bases. This ground operation is the pacing item, 
accounting for the long period in Phase II using trucks and cranes 
and the relative small reduction in Phase II time (1 to 3 months 
out of 8 months) when a helicopter is used as described. 

With an HLA, on the other hand, the time spent in hauling and 
lifting is completely replaced by the time spent in using the HLA, 
and the time for Phase II could be reduced from 8 months to roughly 
240 round trips. Round trip times vary as indicated earlier in 
Table 6-15, from 7 minutes to 32 minutes which for 240 towers 
results in 4 to 16 8-hour days. Conventionally, it takes 8 months 

2 

to place 240 towers. This is approximately -r- x 350 calendar days 
5 2 

or y X j X 350 = 167 8-hour working days. This corresponds to 

167 

X 8 =5.56, say 5 to 6 hours per tower, compared to somewhere 

between 7 and 32 minutes per tower with a free flying vehicle (15 
minutes per tower is currently anticipated for an S64 helicopter) . 

Thus the construction time of 8 months can be reduced in 
proportion to the flight time per tower, provided an FFV is used 
that can carry a complete tower, and totally substitute for flatbed 
trucks and cranes. Therefore, Phase II time can be reduced by at 
least 90 percent to as much as 98 percent, by 7.50 to 7.84 months. 
This implies a very significant effect on HLA threshold costs, as 
identified in Figure 6-4, shown earlier. 


6-55 



If the helicopter perforins the two round trips to effect 
tower placement, the threshold cost becomes the cost of the heli- 
copter to perform its task, assuming ground support costs and other 
savings are comparable, as given in Table 6—16, below. 


TABLE 6-16 HLA Threshold Cost vs. Skycrane Competition 


SKYCRANE TYPE 

S64 E 


S64E 


OPERATING HOURS/YEAR 

1500 

2200 

3000 

1500 

2200 

3000 

COST PER HOUR 

1654 

1529 

1450 

2361 

2029 

1830 

JOB* 


120 

mm 



.0944 

.0812 

.0732 

COST 


240 



kb 

.1888 

.1624 

.1464 

($M) 


360 


IQI 

.1740 

.2832 

.2436 

.2196 

MAX. TOWER SIZE* IT) 

18.8 

23 


•assuming TWO ROUND TRIPS PER TOWER 


The maximum tower size essentially eliminates the current heli— ^ 
copter from contention for the larger lines, but it remains avail 
able for competition for the 345 and 500 kV lines. 

The threshold cost is thus a significant variable. However, 
by examining the average HLA cost to do the job, the critical 
regions of the threshold costs can be isolated. 

The market share factors for this application are A = 0 
and B = 32.5 From 


6-56 




















Then for = 100 

S >B ^32.5%. 


Since 



This threshold cost and the average 25-ton payload HLA job cost 
(HLAC) are given in Table 6-17. 


TABLE 6-17 Threshold and Average HLA Job Costs (Transmission Tower 
Placement) 



The threshold HLA costs given in Figure 6-4 are roughly one- 
half to one order of magnitude greater than this limit, and the 
25-ton market would be a virtual certainty. Even the helicopter 
costs (which are the HLA threshold costs for competition against 
the helicopter) would be greater than these since the HLA costs 
were calculated for a 2 5- ton payload machine, rather than the 
13-ton and 17-ton payloads that the helicopter is suited to. Thus 
it would appear that the 25-ton HLA has the potential for capturing 
the complete market with the total number of vehicles, assuming no 
ferry requirements, shown in Table 6-18. 


6-57 


I 
































TABLE 6-18. No-Ferry Number of HLA to Satisfy the HLA Share of the 
Transmission Tower Placement Market 


AVERAGE HLA SPEED (MPH) 


2.5 

■■ 


6.0 

■■ 

AVERAGE DISTANCE TO SITE (MILES) 

1 



2.5 

B 

1 

2.5 

D 




MIN. 

3 

3 

TOTAL HOVER TIWE 











MAX. 


5 



5 





MIN. 

12 

21 

29 

9 

14 

16 

Nw 

''nf 

ANNUAL 

1,000 

MAX 

14 

22 

32 

12 

17 

18 


UTILIZATION 









I25T) 

(HOURS) 

2,000 

MIN. 

7 

12 

17 

5 

8 

9 




j MAX. 

8 

12 

18 

7 

9 

10 


6. 7. 3. 5 The Effect of Ferry on the Number of Vehicles . From 
Section 6.3, the ratio between the number of vehicles required with 
ferry, to the number assuming no ferry, is given by 

I 

(Ferry cost/hr) (Hours per job) 

.. (Threshold cost per job) 

~|(^ savings for 100» J ) 

1 - k 


where k is the proportion of the annual utilization consumed in ferry, 
ferry. 

This can be written, as in Section 6.3, as 


1 - k 


and [ pr* ) is developed in Table 6-19. 


6-58 


0??iGjAJAL PAGE 
OF POOR QiJAUpf 






























) 


TABLE 6-19. 



for the Transmission Tower Placement Market 


AVERAGE HLA X>B SPEED (MPHI 

2b 


50 


AVERAGE DISTANCE TO SITE IMILES) 

• 

2 5 

4 

) 

2 5 

4 


MIN. 



7 8 

15 

22 2 

6 

10 

1 1 

TOTAL JOB TIME (HOURS) 

MAX 



9 6 

17 

27 2 

a 

12 

13 

THRESHOLD COST /SK, \ 

1 'mr.I 

MIN 



6 3 

4 7 

4 3 

B3 

80 

10 

JOB TIME ' ' 

MAX. 



t>9 

5 4 

4.3 

8.9 

8 4 

1U 















1.000 



2 4 



FERRY COST AT BEST FERRY SPEED i 

Uk- \ 
'hr) 









Z 

2.0U0 



16 





o 











K 








(% SAVINGS) « ( NO FERRY" SHARE) 


< 




32 5 



1 


= QC 

H D 

1.000 

1.17 

1 57 

1 72 

89 

92 

74 


MIN. 

D 0 
-1 I 







1 1 (SEE SECTION 6.3 3) 


3 

2.000 

78 

1 05 

1 14 

59 

.52 

.49 

V CFV 

MAX 

Z 

Z 

< 

tuuo 

1.0/ 

1 37 

1/2 

83 

88 

74 




2.000 

/I 

.91 

1 14 

.55 

59 1 

49 


to Figure G-1 in Section 6.3, shows that these values 

an increase in number of vehicles for the 60 mph case, 

but of a low order unless a large number of ferry hours per year are 
required. The 25 mph vehicle numbers required may be expected to 
decrease as a result of the conflicting effects of ferry cost and 
ferry time. Note that in both cases the effect of reducing annual 
utilization is to reduce the number of vehicles required. On balance, 
the no-ferry values of Table 6-18, provide the best estimate in the 
absence of definitive ferry and utilization information. 


Reference 


of ( ^ ) permit 


N 


6-59 



6.8 Case Study No. 5 

Transportation of Equipment for and Construction of 
Steam Electric Generating Plants 

6.8.1 Current Operations 

This case describes the construction of a typical 600 MW 
fossil fuel steam electric generating plant at a site in the 
Southwestern United States. In this type of construction there 
are three principal activities: 

. Transportation of heavy and outsized equipment from the 
place of manufacturing to the lay-down area or the con- 
struction site 

Transportation of heavy and outsized components in addi- 
tion to other supplies from the lay-down or staging area 
to the construction site and emplacement of same at the 
site 

. Lifting and erection of heavy components and modules at 
the construction site. 

The heavy components required for a typical 600 MW electric 
generating plant include: 

. 1 generator - 300 tons weight 

. 1 deaerator heater and tank, which can weigh up to 

120 tons 

. 1 main steam drum - 300 tons 

5 heavy girders to be placed on top of boiler structures 
weight up to 125-140 tons each. 

In addition there are several components that currently have 
to be shipped knocked down due to the limitations of the existing 
transportation infrastructure: 

. One each of: turbine and shaft, assembled weight of 

each, 100-150 tons 

. One each of: high pressure, intermediate pressure and 

low pressure stages, assembled weight of each, 70 tons. 


6-60 



The above components are assembled at the factory, tested, 
knocked down for shipment, and then finally assembled and in- 
stalled at the construction site. The total current cost of the 
turbine and shaft is $12 million, and the cost of each of the 
stages is $5 million for a total of $15 million. 

The final large component is a condenser. This component 
will, however, have to be shipped knocked down, and assembled at 
the site. This is due to the particular construction requirement 
of this component and its surrounding structures. 

In addition to the heavy equipment, approximately 30,000 tons 
of miscellaneous components, equipment and supplies are required 
for the construction project. 

In a typical power plant construction job two areas are set 
aside : 


. Lay-down area. This is the storage and staging area 

where all supplies, components and equipment are stored 
in a carefully defined grid area. This site is normally 
located next to a railroad freight yard, good road, or a 
barge landing that are easily accessible. The lay-down 
area is within 3/4 to 1 mile of the construction site. 

Construction site. This is the actual site of the con- 
struction. The equipment, components and supplies are 
transported to the site from the lay-down area by trucks, 
cherry-pickers and other means of transportation. 

All equipment, components and supplies are offloaded from their 
transport and placed in their grid in the lay— down area. 

The cost of transportation of the heavy components from the 
origin to the lay-down area is covered in case study No. 13 dealing 
with parametric costs from different means of transportation. 

Some typical costs for transporting components from railcar to the 
construction site including erection at the construction site were 
given by Williams Crane & Rigging of Richmond, Va. as follows: 

Size of Component 


40-100 tons 
100-175 tons 
200-400 tons 


Total Cost 


$1400-$1800 

$2200-$2300 

$100,000-$125,000 


6-61 



In the remote areas and wetlands in the southwest United 
States, major problems are often encountered in storing and trans- 
porting the equipment, components and supplies. The problems are 
both of finding a suitable lay-down area and of transporting these 
items between the lay-down area to the construction site. In the 
case of the generating plant constructed by Bechtel for the Lower 
Colorado River Authority in La Grange, Texas, a two-mile rail spur 
had to be constructed from an existing rail yard to the lay-down 
area, in order to bring in two trainloads of supplies per week. 

The cost of the spur was approximately $1 million. 

At the construction site itself a 500-ton crane is installed 
to handle the lifting of the large components. The maximum capac- 
ity of the crane is used only for the previously mentioned large 
components, i.e., approximately 10 lifts during the entire con- 
struction period of approximately 2.5 years. The remainder of the 
time the crane is handling structural parts weighing up to 30 
tons. The rental charge for a 500-ton crane is typically $1200 
per day. 

6.8.2 Potential HLA Applications 

There are three possible scenarios for the application of the 
HLA in the transportation of components for and construction of 
the power plant: 

Transport the fully assembled turbine and shaft, and the 
three pressure stages from the manufacturing plant to 
construction site 

. Transport the heavy components from the lay-down area to 
the construction site and perform erection at the site 

. Lift fully assembled structural modules from assembly 
yard and position same at the construction site. 

6.8.2. 1 Application li Transport Fully Assembled Components . The 
turbine and its shaft and the three pressure vessels have to be 
assembled at the manufacturing plant, tested and then disassembled 
or knocked down for shipment. The disassembly is necessary be- 
cause the awkward and outsized dimensions of the fully assembled 
modules preclude their transportation by existing modes of trans- 
portation. At the construction site these components have to be 
reassembled and installed. The HLA is not constrained from 
transporting large, awkward components, and can therefore trans- 
port the components fully assembled with great potential savings 
in cost. 


6-62 



(1) Scenario 

Since the HLA can transport the outsized and awkward 
components, the following hypothetical scenario was constructed: 

. After the components have been fully assembled and 
tested at the manufacturing plant, they are posi- 
tioned, prepared and rigged for transport by HLA. 

. The HLA transports the fully assembled components 
to the construction site. 


(2) Assumptions 

The following simplifying assumptions pertaining to this 
operation are made: 

. The manufacturing plant has facilities to allow the 
internal movement of the fully assembled components 
to a site in the plant that can be accessed by the 
HLA 

. The rigging at the manufacturing plant is performed 
by employees of the manufacturer 

. The cost of this rigging does not exceed the cost 
of preparing the knocked-down components for ship- 
ment 

. The rigging at the lay-down area is performed by 
employees of the construction firm. 


(3) Potential Cost Savings with HLA 

The potential cost savings resulting from the use of the 
HLA for the transportation of the fully assembled turbine and 
shaft and the three pressure vessels are due to the elimination of 
two time consuming and costly operations: 

. The disassembly of the components at the manufactur- 
ing plant 

. The reassembly of the same components at the con- 
struction site using higher cost labor with less 
productivity due to the relatively primitive con- 
ditions existing at a field construction site com- 
pared to a manufacturing site. 



Experts from Bechtel Power Corp. have estimated cost 
savings resulting from the elimination of the two above operations 
to amount to at least 30 to 35 percent of the total cost of the 
components. The potential cost savings for a typical electrical 
generating station can be estimated as follows; 

Approximate Cost Estimated Cost Saving 

$12 million $3.6 million 

$15 million $4.5 million 


This estimate is supported by a recent study performed by 
the General Electric Co. In this study,- it was found that great 
savings could be achieved by creating energy parks having several 
nuclear power generating stations in one central location where all 
components are produced and assembled in on-site factories. General 
Electric concluded (Reference ^2 ) ; 

"Use of an on-site factory and modular, production line type construction 
indicates a potential for nuclear generation plant capital cost savings of 
the order of 25 percent in the reference park compared to dispersed sites 
used in the study."* 

This particular study assumed that the modules would be assembled 
in on-site factories and installed on the site. It is reasonable 
to assume that similar savings can equally well be derived by 
assembling modules in a centrally located factory for transporta- 
tion and emplacement at a power plant. 


Component 

Turbine and shaft 

High, medium and low 
pressure stages 


(4) HLiA Threshold Cost 

The threshold cost for the HLA is the above saving cost 
plus the cost of shipping the components via conventional means of 
transportation. The turbine and the shaft are shipped separately 
as two components plus additional parts and the three pressure 
stages are shipped as three separate components plus supporting 
materials. Estimated transportation costs for these components are 
$100,000, giving a threshold cost of $8.2M. 


Assessment of Energy Parks vs. Dispersed Electric Power Generating Facil- 
ities, final report, Vol. I, prepared for the Office of the Science Ad- 
visor, Energy RsD Office, by Center for Energy Systems, General Electric 
Co., (May 30, 1977) pp ES-4 to ES-9. 


6-64 



(5) Potential Operating Scenarios for HLA 

The HLA operating times will be a direct function of HLA 
Qjfuise speed and typically one~way distances from platn to construe™ 
tion site or laydown area of 200 to 600 miles. 

6. 8. 2. 2 Application 2; Transportation and Erection of the Heavy 
Components. When electric power generating plants are constructed 
in remote areas or in areas with difficult terrain, as in the 
wetlands of the Gulf of Mexico, it is at times costly and time 
consuming to transport the heavy components from the lay-down area 
to the construction site. At the construction site it is necessary 
to have a heavy-lift crane (350-500 ton capacity) whose capacity is 
used approximately 10 times during the entire construction period. 

At other times this crane is lifting loads up to 30 tons. The HLA 
can therefore be a potential cost and time-saving device in the 
transportation of the components between the lay-down area and the 
construction site. In addition, it can completely replace the 
heavy-lift crane. 


(1) Scenario 

The following scenario is construed; 

. The HLA replaces the trucks/crawlers and cranes that 
are used in transporting the heavy components from 
the lay-down area to the construction site 

. At the construction site the HLA is used to emplace 
the component at the site. The heavy-lift crane on 
the site is not required and all other lifts are 
made with mobile cranes and cherry-pickers used on 
the site for other purposes. 


(2) Assumptions 

The scheduling and the actual progress of the construction 
jobs will differ. For the hypothetical construction site the fol- 
lowing assumptions as to the operation have been made: 

. The cost of transportation and erection will be 

similar to the costs of the case defined earlier. 

It is assumed that the manpower required for the 
rigging both at the lay-down area and at the site 
will be the same as with conventional transportation. 
The HLA will thus replace the transport vehicle and 
possibly reduce the time for the operation. 


6-65 


ORIG(!SSAL PAGE ];• 
OF POOR QUALITY 



The heavy-lift crane at the site can be completely 
6l imina ted . The lifts of up to 30 tons performed by 
the crane can be performed by other cranes on the 
site . 


The construction work is so scheduled and the site 
has been built so that the places where the component 
is to be emplaced are accessible by the HLA. 


The cost of the 500-ton crane is assumed to be $1200 
per day. This crane normally remains on the site 
for the entire construction period of 2.5 years. 


Under conventional operation, an independent rigger 
is contracted to perform the unloading, hauling and 
erection of the components. The average costs in- 
dicated by Williams Crane & Rigging Co. of Richmond, 
Va. are assumed to be representative of these opera- 
tions. Their costs are: 


Weight of Component Manpower 


Equipment 


Total 


40-100 tons 
100-175 tons 
200-400 tons 


$1000 $400-$800 $1400-$1800 

$1000 $1200-$1300 $2200-$2300 

$50,000-$60,000 $50,000-$60,000 $100 , 000-$125 , 000 


It is assumed that there are six different ship- 
ments, each consisting of the following: 

5 girders each 125-140 tons 

1 generator, 300 tons 

1 deaerator and tank, 100-120 tons 

1 main steam drum, 300 tons 

3 pressure stages, each 70 tons 

1 turbine and 1 turbine shaft, each approxi- 
mately 100-150 tons 


The HLA is therefore required to make six separate 
trips to the job site to transport these components. 


(3) Potential Cost Savings with HLA 

With the exception of cost benefits that may be derived 
from the convenience of unloading, transporting and emplacing the 


6-66 



components faster, there are no actual cost savings that can be 
attributed to the use of the HLA. These intangible benefits of 
convenience are difficult or impossible to quantify, and we have 
made no attempt to do so . 




•i. 


(4) HLA Threshold Cost 

The HLA can replace two relatively costly components: 

. The on-site high capacity crane 

. The lifting and hauling equipment required in un- 
loading, transporting and emplacement of the heavy 
components . 

The primary cost item that can be eliminated and replaced 
with the HLA is the high capacity on-site crane. The cost of a 
typical 500-ton crane used in this operation is $1200 per day. 

Over the 2.5-year construction period the total cost saving is 
$1,095,000. 


Other cost items that can be eliminated and replaced with 
the HLA are the jacks, cranes, and transportation equipment required 
for moving the equipment from railcar to construction site. Accord- 
ing to William Crane & Rigging, a typical breakdown of equipment 
costs for different sized hauls and rigging jobs are as follows: 


No. of 

Weight of Componen t Equipment Cost Components 


Potential 

Saving 


40-100 tons 
100-175 tons 
200-400 tons 


$400-$800 3 
$1200-$1300 8 
$50,000-$60,000 2 


$1200-2400 

$9600-$10,400 

$ 100 , 000 - 120,000 


Total potential saving 


$110,800-$132,800 


The threshold cost with the HLA is therefore the sum of 
the cost of the equipment that is replaced. In this case the 
threshold cost is in the range from $1,205,800 to $1,227,800. 


(5) Potential Operating Scenario for HLA 

The total time required for the HLA will vary with the 
weight of the components to be erected. The transportation distance 
is short so that speed effects are not important. These categories 
have been selected based upon the operating experience of conven- 
tional rigging operators. The three operators' experience regimes 
are : 


6-67 



Less than 100 tons 
100 tons up to 200 tons 
200 tons and more. 


The operating scenario is expected to be: 

. Unload from railcar, transport, position at site, 
and return to railcar: 

Components less than 100 tons 1/2 hr. 

- Components 100 to 200 tons 1 hr. 

Components 200 tons and more 2 hrs. 

The expected total time requirement for the six shipments 
are thus expected to be : 


Shipment (1) 5 girders each 
125-140 tons 

Shipment (2) 1 generator 300 tons 

Shipment (3) 1 deaerator & tank 
100-125 tons 

Shipment (4) 1 main stream drum, 
300 tons 

Shipment (5) 3 pressure stages, 

70 tons each 

Shipment (6) 1 turbine & 1 turbine 
shaft each 100-150 tons 

Total operating time 


5 hrs . 
2 hrs . 

1 hr . 

2 hrs . 

1-1/2 hrs. 

2 hrs . 
13-1/2 hrs. 


6. 8. 2. 3 Application 3: Lift and Position Fully Assembled 

Structural Modules . The conventional method of construction is to 
bring the structural steel to the construction site, lift it in 
place with on-site cranes and weld it. Experts from Bechtel Power 
Corp. have indicated that great cost savings can be achieved if 
structural modules were prefabricated in a fabrication site close 
to the construction site. This cost saving operation has been 
precluded to a large extent because of the difficulty of erecting 
these structures at a construction site using conventional trans- 
port equipment and cranes. The HLA has the potential for solving 
the problem of moving the structural modules between the fabri- 
cation yard and the site, and to emplace the modules at the site. 


6-68 



(1) Scenario 

An on-site fabrication yard to assemble structural modules 
is established in close proximity to the construction site and the 
lay-down area. At this fabrication yard all the structural steel 
material is assembled into modules weighing from 100 tons up to 300 
tons. The actual weights of the modules will be adjusted to the 
lifting capability of the HLA selected for the application. The 
HLA is used to move the modules from the fabrication yard to the 
construction site and to erect and emplace the modules at the site. 

More than 100 modules are required for the construction 
of the typical 600 MW power generating station. The progress of 
the overall construction job and the fabrication of the modules is 
scheduled, so that the HLA is brought to the site in four time 
increments throughout the 2.5-year construction period. In each of 
these time increments the HLA is used for a full 8-hour working day 
for a continuing period of one to three weeks. 

The arrival of the heavy components, described in appli- 
cation 2, and the construction work are scheduled so that the un- 
loading from the train, transportation from the site plus erection 
can be accomplished as part of the work performed by the HLA in the 
four increments. 


(2) Assumptions 

The assumptions made for application 2 above remain the 
same with respect to unloading, transporting and positioning the 
heavy components. In addition, the following assumptions are made: 

. All rigging both at the fabrication yard and at the 
construction site is performed by the normal comple- 
ment of construction workers. No additional workers 
are required for the rigging operation. 

The scheduling of the construction work and the 
arrival of the heavy components are set so that the 
HLA will have minimal unproductive waiting time. 
Furthermore it is assumed that construction work is 
performed and scheduled so that the HLA will have 
unobstructed access to areas, where components and 
modules are to be emplaced. 


(3) Potential Cost Savings 

Great savings in cost can be derived from the increased 
productivity by transferring construction work from field conditions 


6-69 



to an assembly and fabrication yard. The study performed by 
General Electric (Reference 12 ^) concluded: 

"The major savings will accrue from shifting of construction 
labor from the field construction site to the on-site modular 
factory combined with benefits from repetitive work sequences 
(learning curve) resulting in an increase in productivity by 
a factor of 1.5 to 4." 

Experts from Bechtel Power Corp. proposed that the total 
construction budget of $75 million for a typical 600 MW power 
plant could conservatively be decreased by $5 million if an on-site 
fabricating yard were made feasible by the existence of the HLA. 


(4) HLA Threshold Cost 

The HLA threshold cost in this case is the sum of the 
total cost savings of $5 million plus the cost of the replaced 
equipment. The latter was estimated from the previous application 
to be in excess of $1.2 million. The HLA threshold cost for this 
application is therefore estimated to be in excess of $6.2 million. 


(5) Potential Operating Scenario for HLA 

It is anticipated that the HLA will be required in four 
time installments each lasting from one to three weeks or an average 
of two weeks for each time installment. In this time the HLA will 
be used jcontinually for 8 hours per day. Total operating time ex- 
cluding ferry between base and construction site, for the HLA is 
expected to be : 

. Operating time: 14 days x 8 hrs. 

X 4 times: 448 hrs. 


6-70 


I 



6.8.3 Estimate of HLA Needed to Satisfy the Potential Market . 

This estimate assumes three different payload sizes selected 
to accommodate the following categories of components 

. Major nuclear plant components - 750 tons 

. Major non-nuclear plant components - 300 tons 

Other components - 150 tons. 

6. 8. 3.1 The Annual Market . From Section 5, the annual market is 
summarized as 85,000 MW of generating capacity added per year. 
Application 1 refers to pressure stages, which are components 
associated with nuclear and fossil fuel power generation, and to 
turbines and turbine shafts which are associated with these and 
with hydroelectric power generation. The nuclear and fossil fuel 
added annual capacity is 73,000 MW, while nuclear, fossil and 
hydros come to about 83,000 MW. The majority of the components 
lifted in Application 2 are required for all forms of power plant, 
as are the structural modules lifted in Application 3; for these 
two cases the total annual added capacity of 85,000 MW is approp- 
riate . 

6 . 8 . 3 . 2 The Required HLA Capabilities . Study of the component 
characteristics given in Section 5 for the various generating plant 
types and sizes enables estimates to be made of the number of heavy 
lifts per year required for each payload size and application. 

(1) Application 1 

For this application, using 300-ton payload HLAs, 3 
pressure stages must be lifted together for every 600 MW of added 
nuclear and fossil fuel generating capacity, and 1 turbine and 1 
turbine shaft together for every 600 MW of added nuclear, fossil 
and hydro generating capacity. To satisfy the added annual cap- 
acity for these cases would require 

122 pressure stage lifts per year 
. 139 turbine and shaft lifts per year. 

(2) Application 2 

From the data in Section 5, the component weights per MW, 
and the distribution of these weights are as shown in Table 6-20. 


ORiGis'iAL PAGE t: 
OF POOR OU.ALjTY 

6-71 


TABLE 6-20. Power Generation Plant Component Weights and Distribution 


COMPONENT 

WEIGHTS 

NUCLEAR PLANTS - 0.5 T/MW 

STEAM, HYDRO. GAS TURBINE 

PLANTS - Z2T/MW 

COMPONENT 

WEIGHT 

DISTRIBUTION 

h 

COMPONENT WEIGHTS <T) 0 150 300 5C 

)0 1000 

NUCLEAR PLANTS 

STEAM, HYDRO, GAS TURBINE 
PLANTS 

17% 

85% 

15% 

- 

83% 


From this information, and the annual generating capacity 
added for each power source, the number of lifts required per year 
are given in Table 6 - 21 . 


TAB LE 6-21 . Number of Lifts Per Year to Support Application 2 


GENERATING 

SYSTEM 

ADDED 

ANNUAL 

CAPACITY 

(MW/YEAR) 

TOTAL HEAVY 
LIFT 
(T/YEAR) 

NUMBER OF LIFTS/YEAR 

150T 

— 

300T 

750T 

NUCLEAR 

THERMAL 

SUPPLY 

39.500 

20.000 

23 

- 

23 

STEAM 

GENERATOR 

89.600 

264 

- 

66 

STEAM 

33.400 

73,400 

416 

37 

- 

HYDRO 

10.200 

22,400 

127 

11 

- 

GAS TURBINES 

1,700 

3.800 

22 

2 

- 

TOTAL 

84,800 

209,200 

852 

50 

89 


6-72 






















(3) Application 3 

An average 600 MW station requires approximately 20,000T 
of structural modules. Thus the total added annual capacity of 
84,000 MW will require 2.83 x 10^ tons of structural modules, 'me 
alternative lifts are as given in Table 6-22. 


TABLE 6-22. Number of Lifts Per Year to Support Application 3 


PAYLOAD SIZE (T) 

150 

300 

750 

LIFTS PER YEAR 

18,870 OR QflSS OR 2^774 


The annual operating hours in each application are as 

follows ; 

(1) Application 1 

This is transport time from plant to site and return; 
the 300T round trip time for this lift is given in Table 6-23. 

TABLE 6-23. Operating Time for Application 1 (hours) 


HLA SPEED 

one-way'^'""'''^^ **'^**”^ 

DISTANCE (MILES) 

25 

60 

200 

32 

13.3 

400 

64 

26.7 

600 

96 

40 


6-73 




(2) Application 2 

This is on-site transportation and erection; the times 
are given in Table 6-24 for a 600 MW plant. 

TABLE 6-24. Operating Time for Application 2 (hours) 


COMPONENT WEIGHTS (T) 

D>100 

100-200 

>200 

PAYLOAD IT) 

HOURS PER COMPONENT TO 



mm 




UNLOAD, TRANSPORT, POSITION & RETURN 

0.5 

1.0 

B 

150 

300 

750 

5@ 125-^ 1407 

- 

5 

- 

5 

- 


1 @ 3007 

- 

- 

2 

- 

2 

- 

1 @ 100-125T 

- 

1 

- 

1 

- 

- 

1 @3007 

- 

- 

2 

- 

2 

- 

3 @707 

1.5 

- 

- 

1.5 

- 

- 

2@ 10CH50T 

- 

2 

- 

2 

- 

- 

SUBTOTALS 

1.5 

8 

4 

9.5 

4 

a 

TOTAL TIME 





lao 1 

AVERAGE TIME PER LIFT 


0.864 

2 

2 


(3) Application 3 

The time required to lift and position fully assembled 
structural modules is given in Table 6-25 for a 600 MW plant, based 
on 448 hours for 100 200-ton modules. 


TAB LE 6-25. Operating Time for Application 3 (hours) 


PAYLOAD SIZE IT) 

150 

300 

750 

NUMBER OF MODULES 

134 

67 

27 

OPERATING TIME <HRS) 

597 

299 

1T9 


6-74 


I 












































Total number of 


6. 8. 3. 3 ’*No-Ferry" Number of Vehicles , N 

''nf 

each payload size to satisfy 100 percent of the market 

(Lifts per year) (Hours per li ft) 
Utilization 

and this is given in Table 6-26. 

TABLE 6-26. No-Ferry Number of Vehicles to Satisfy 100% of the 
Power Generation Market 



Nw 

''NF 

APPLICATION 

PAYLOAD (T) 

150 

300 

750 

1 

HLA SPEED (MPH) 


25 

60 

B 

ONE WAY DISTANCE 

200 

ANNUAL UTILIZATION 

1000 

H 

10 

B 

a 

2000 

5 

2 

400 

1000 

a 

18 

8 ' 


2000 

9 

B 

600 

1000 

a 

26 

12 

a 

2000 

13 

6 

2 

__ — ' 

1 

1 

1 


3 

ANNUAL 

UTILIZATION 

(HOURS) 

1000 

85 

n 

43 

a r\ 

17 

2000 

VJ 

« 1 

22 1 

9 


6. 8. 3.4 *'No-Ferry'' Share of the Market , From the 600 MW 

case study, the threshold cost ($M) for each application is as 
follows : 


6-75 































Application 1: TC = 8 . 2 

Application 2: TC = 1.22 

Application 3: TC = 6.2 

The average HLA job cost ($M) is as follows: 

Application 1: HLAC = .113 

Application 2: HLAC = .065 

Application 3: HLAC = 6.85 

The market share factors are A=22.5 and B=50. Thus from the 
expression derived earlier, 

Application 1: = 100 percent 

Application 2: Mpjp = 100 percent 

Application 3: I^p = 0. 

(Note for the market share in Application 3 to become 100 percent, 
HLAC would have to become no more than about half the estimted HLAC. 


6. 8. 3. 5 "No-Ferry" Number of Vehicles for Market Share, N 

— Vjjp 


Since the market share is clearly 100 percent in the first two 
applications, and 9 percent for Application 3, the number of 
vehicles are in Table 6-26 for those two applications. Note that 
if the HLAC cost can be reduced roughly 50 percent, the number of 
vehicles required can increase substantially. 

6. 8. 3. 6 The Effect of Ferry on the Number of Vehicles . Using 
the expression and data derived in Section 6.3, 



the ferry ratio ranges from 1.16 to 1.4 for k=.3 and ranges from 
1.56 to 2.48 for k= . 6 . Thus in general, as ferry is required, the 
number of vehicles required will increase by roughly a factor of 2. 


6-76 


I 



6.9 Case Study No. 6 
Pipeline Construction in Northern Canada 

6.9.1 Current Operations 

This case is based on the planned construction of the Foot- 
hills Pipelines Company Ltd. portion of the Alcan-Foothills 42-inch 
gas pipeline extending 2754 miles from the Prudhoe Bay gas fields 
in the artic area of Alaska through the Yukon and British Columbia 
and the United States to Alberta. All cost figures and other data 
are based on data given to Goodyear Aerospace by officials of 
Foothills Pipeline Company Ltd. of Calgary, Alberta. 

The construction of a pipeline requires a major logistical 
support network to assure that all equipment, pipeline materials, 
and other supplies are at the right place at the right time. Even 
minor delays may cause lost construction time at tremendous costs. 

In the climatically hostile and difficult terrain of Alberta and 
the Northwest Territories, the logistical support function is even 
more of a challenge than in most other areas. This case study will 
be limited to the description of three areas of logistical support 
where the HLA could potentially perform a valuable service; 

. Transport of equipment from winter sites to enable an 
extension of the winter construction season 

. Transport of construction equipment and personnel across 
internal obstructions along the pipeline right-of-way 
(ROW) 

Transport of pre-assembled or modularized compression 
stations from railroad lay-down areas, from heavy-lift 
trucks on major highways, or directly from manufacturing 
plants . 

The currently planned functions for each of these areas are 
described below. 

6. 9. 1.1 Winter Construction . Under currently planned operations. 
Foothills will establish three winter construction sites each 
winter season during the total construction period. Each of these 
sites will have a total of approximately 85 pieces of construction 
equipment valued at $17 million. The weight of each piece of 
equipment ranges from 25 tons up to 65 tons. The average piece of 
equipment weighs approximately 40 tons. Very large units are often 
knocked down or disassembled into smaller pieces for transportation 
to and from the sites. The total manpower requirement is planned 

at 550 men including supervisory personnel at each of the three sites. 


6-77 



Construction of approximately 30% of the total lengths of the 
pipeline in Canada, i.e., 130 miles in Alberta, 250 miles in 
Br’itish Columbia, and 100 miles in the Yukon must be constructed 
exclusively during the winter when the ground is frozen solid to 
enable movement of the heavy equipment. The total winter con- 
struction season is estimated at 100 days, during which an ayerage 
of 60 productive workdays are expected. At the end of the winter 
construction period, while the permafrost is still in the ground, 
the equipment will be transported out of the construction sites. 

Heavy trucks will be used for this operation. All construction 
workers, except supervisory personnel, which account for approxi- 
mately 10% of the work force, are laid off in the non-productive 
time during the summer . 

It is estimated that the cost of transporting the equipment to 
and from the winter site is estimated at $500,000 per site or $1.5 
million for the three sites. 

6.9. 1.2 Natur al Obstruction Bypasses . When natural obstructions 
such as rivers are encountered, a temporary suspension is established 
to enable the laying of the pipe across this obstruction. Once 
this temporary suspension has been established, the construction 
crew and the equipment are transported back down the right-of-way 
(ROW) , to the first public highway cutting across the ROW. This 
highway is followed up to the next public highway crossing the ROW 
on the other side of the river or obstruction. The ROW is followed 
back to the crossing. The reason for this somewhat cumbersome 
method of crossing is that Foothills has made a commitment not to 
construct temporary bypass roads. The average distance for each 
bypass is estimated at 100 miles. It is also estimated that each 
bypass will involve the loss of one day of productive time for the 
entire construction crew of 550 men. Since the full working day is 
10 hours at $30/hour the cost of the productive time lost is 
$165,000. 

A total of 85 pieces of equipment needs to be transported by 
truck. It is estimated that a total of 10 trucks will be required 
for each bypass at a cost of $30 per hour for the driver and $4 
hourly truck operating cost. Assuming an average speed for the 
trucks of 30 mph, the truck operating cost will be $19,300. The 
total cost for the bypass operation is therefore $184,300. 

An alternative that was considered by Foothills was to con- 
struct temporary bypass roads at each end of the obstruction. The 
cost of construction of the bypass road and restoring the land 
after completion of the operation is estimated at a cost of 
$10,000 per mile. A bypass with an average length of 10 miles 
would have to be built and restored for each at a cost of $100,000 
per bypass. In this case the truck transportation would be 


I 


6-78 


ORIGiNAL PAGE !£ 
OF POOR O’JAUTV 



reduced to $1,930. The total cost of the bypass operation under 
this alternative plan will be $184,430, assuming that only one-half 
day of production time will be lost. 

6. 9. 1.3 Compressor Stations . Compressor stations have to be built 
every 100 to 120 miles along the pipeline. Access roads are con- 
structed from the main highway to the compressor stations. These 
roads are generally constructed to handle normal loads up to 20-25 
tons. The components will be either transported by rail to a lay- 
down area for further transportation by truck to the compressor 
site, or by truck all the way from the manufacturing plant to the 
station site. The total compressor station weighs approximately 
375 tons. An alternative considered by Foothills Pipeline is to 
pre-assemble the compressor stations into five components weighing 
75 tons each. It is estimated that a total saving of $400,000 
could be achieved through this modularization. The problem with 
this approach, is however, that the access road will have to be 
strengthened at an incremental cost of $750,000 to accommodate 
vehicles carrying the 75-ton modules. 

6.9.2 Potential HLA Applications 

The HLA has potential for use in logistical support in each of 
the three areas described above. Three potential scenarios can be 
formulated: 

. The HLA can transport equipment from the winter con- 
struction sites after the permafrost has melted, thereby 
extending the winter construction season. 

. The HLA can transport equipment and personnel across 

natural obstructions such as rivers and avoid delays or 
stoppages in the construction. 

. The HLA can transport modularized compressor stations 
from a railroad staging area or from a major highway. 

6. 9. 2.1 Application 1: Winter Construction Season Extension . The 

current plan for winter construction calls for a total construction 
season of 100 days. In order to ensure that all equipment and 
supplies are evacuated before the permafrost thaws in the spring, 
the construction is stopped and demobilization takes place during 
*. a period which potentially might have been the most favorable time 

for construction. If some means existed to evacuate the camp after 
the thaw of the permafrost, it is estimated that the construction 
season could be extended for at least another 20 days. 


6-79 



(1) Scenario 


Foothills Pipelines Company Ltd. has contracted with an 
HLA operator to transport all equipment from the three winter 
construction sites to the nearest all year highway for further 
transportation to a new staging area. Officials of the Foothills 
Pipelines Company expect that this operation will enable extension 
of the winter construction season by 20 days. It is estimated that 
the productivity of the work force will be increased by 10% as a 
result of this extension, since construction can be conducted under 
very favorable conditions in the spring. 


(2) Assumptions 

The following assumptions are made: 

. The benefits derived from the extension of the 

season and the resulting productivity increases are 
realized by reducing the total work force, rather 
than by increasing the total work output. The total 
work output will remain 33,000 man-days for each 
site or a total of 99,000 man-days for the season 

. The equipment is transported to the winter con- 
struction sites by conventional methods at a cost of 
$250,000 for each site, for a total of $750,000 for 
the three winter sites 

. The average distance from the sites to the major 
highway accessible with conventional trucks is 50 
miles 

The labor cost is $30 per hour, and the normal 
working day is 10 hours. 


(3) Potential Cost Savings with HLA 

The major cost saving that will accrue as a result of the 
HLA is the overall productivity increase estimated at 10%. This 
will imply that the work that would require a total of 99,000 man- 
days can be achieved with 90,000 man-days with a saving of 9,000 
man-days of work. At a cost of $300 per man-day, the total savings 
in labor cost is $2.7 mission. 


6-80 


I 



(4) HLA Threshold Cost 

The cost of demobilizing the equipment is estimated at 
$250,000 per site for a total of $750,000 for three sites. The 
total threshold cost for extending the winter construction season 
and transporting the equipment out with the HLA is expected to be 
the labor cost savings of $2,700,000 plus the transportation costs 
of $750,000 for a total of $3,450,000, 


(5) HLA Operating Scenario 

At each site 85 pieces of equipment will have to be 
evacuated for a total of 255 pieces of equipment. The total time 
required for each piece of equipment is as follows: 


Hover 

at origin 

, for hook up 



2 

minutes 

Loaded 

travel , 

50 miles 

- fast 

HLA 

50 

minutes 




- slow 

HLA 

120 

minutes 

Hover 

at discharge point 



2 

minutes 

Return 

voyage 


- fast 

HLA 

50 

minutes 




- slow 

HLA 

120 

minutes 

Total 

time per 

round trip 

- fast 

HLA 

104 

minutes 




- slow 

HLA 

244 

minutes 


For 255 pieces of equipment, the total operating time 
will be 26,520 minutes for the fast HLA or 62,220 for the slow HLA. 
In addition ferry time to the site will be required. 

6. 9. 2. 2 Application 2: Bypass of Natural Obstructions . At the 

present time, the plan for the construction of the Foothills' 
pipeline is to bypass natural obstructions like rivers, gorges, and 
other obstructions by loading the equipment onto trucks, back- 
tracking on the ROW to the nearest public highway, and then by- 
passing the obstruction. This method is time consuming causing 
costly construction delays. The HLA could provide a potential 
solution to this problem which is faced by virtually all pipeline 
construction programs. 


(1) Scenario 

When a natural obstruction is encountered, the HLA is 
brought to the site to ferry both equipment and personnel across 


6-81 



the obstruction. Construction can continue v’ith minimal delays and 
cost- 


(2) Assumptions 

The following assumptions are made: 

. The total construction team consists of 550 men and 
85 pieces of equipment. 

. The cost per labor hour is estimated at $30 per 
hour . 

. The average diversion distance is 100 miles. 

Equipment and manpower are transported by 10 trucks 
at an average speed of 30 m.p.h. and at a cost of 
$30/hr for the driver and $4/hr for the truck. 

No man-hours will be lost with the HLA, while an 
average of one working day of 10 hours will be lost 
for each man under the conventional system. 

(3) Potential Cost Savings With HLA 

The major cost savings that can be achieved with the HLA 
will be the cost of productive labor. It has been estimated that 
an average of one day of productive labor will be lost due to a 
conventional bypass operation. This cost, for a labor force of 550 
men working 10 hours at $30 per hour, will be $165,000. 


(4) HLA Threshold Cost 

The HLA threshold cost will be the above labor cost 
saving plus the cost of the trucking for the bypass operation. The 
trucking cost will be approximately $19,300. The threshold cost is 
therefore $184,300. 


(5) HLA Operating Scenario 

The distance that each piece of equipment will have to be 
transported will be limited, on the order of 0.3 to 1 miles, and 
the maximum speed will be low, around 10 to 25 mph. The major 
operating time will be for hover at each end of the bypass. The 
following working scenario is envisioned: 


6-82 



Hovering at loading point 
Loaded transport 
Hovering at discharge point 
Return trip 


2 minutes 
2 minutes 
2 minutes 
2 minutes 


Total time 


8 minutes 


A total of 85 pieces of equipment will have to be trans- 
ported across. Total time for the operation will therefore be 11 
hours and 20 minutes, in addition to the ferry time to the bypass 
point. 

6. 9. 2. 3 Application 3: Transportation of Modularized Compressor 

Stations. The assembly of compressor stations under field condi- 
tions is an expensive proposition, and great cost savings could 
accrue, if it were possible to transport pre-assembled modules to 
the field. In many cases this is not possible, due to the in- 
creased cost of constructing access roads capable of accommodating 
the large loads of modularized components. The introduction of the 
HLA could solve this problem. 


(1) Scenario 

The modularized compressor station components each weighing 
approximately 75 tons are transported from the manufacturing plant 
to the access road or a major staging area by heavy-lift truck or 
flatbed railcar. At this point the modularized components are 
picked up by an HLA, transported to the compressor station site, 
and emplaced . 


(2) Assumptions 

The following assumptions are made: 

. The cost savings that will accrue by pre-assembly of 
the compressor station into five 75-ton components 
at a centralized factory is approximately $400,000. 
This figure is based on estimates proposed by pipe- 
line construction officials. 

The transportation costs for delivering the com- 
pressor station in components to the staging area 
will be similar to the costs of transportation as 
modular units. 



Cost of truck transportation from staging area to 
site is estimated at $30 per hour for the driver 
plus $4 per hour for the truck at an average speed 
of 30 mph and a payload of 75 tons. 

The average distance from the staging area or major 
highway to the compressor station is 30 miles. 

The modular components have been rigged by pipeline 
labor prior to the arrival of the HLA. 


(4) HLA Threshold Cost 

The cost of transporting the 375-ton compressor station 
will require a total of 15 truck round trips at a cost of $68 per 
round trip for a total cost of $1020. The total threshold cost 
will therefore be $1020 plus the assembly cost savings of $400,000 
for a total of $401,020 per compressor station. 


(5) HLA Operating Scenario 

The following operating scenario can be envisioned: 

. Hover to hook up payload 2 minutes 

Transport to destination - fast HLA 30 minutes 

- slow HLA 72 minutes 

. Precision to hover at desti- 
nation to emplace component 5 minutes 

Return to staging area - fast HLA 30 minutes 

- slow HLA 72 minutes 

Total per component - fast HLA 67 minutes 

- slow HLA 151 minutes 

Since a total of five components will be required, a 
total time for each compressor station exclusive of ferry time will 
be 5 hours 35 minutes for the fast HLA, or 12 hours 35 minutes for 
a slow HLA. 


6-84 


ORlGil^SAL PAGE i: 
OF POOR OL*AL[TV 



6.9.3 Estimate of HLA Needed to Satisfy the Potential Market 


This estimate assumes the same payload size for all three 
applications. Since the payloads for the first two applications 
range from 25 tons to 65 tons and the payload for the third applica- 
tion is considered to be 75 tons, this is used as the payload size 
for this market. 

6.9. 3.1 The Annual Market . Worldwide, a total pipeline mileage 
per year of 10,000 is a reasonable estimate of current growth in 
pipelines of 22" diameter or more. The worldwide locations span 
all climates, including: 

. Harsh winter (i.e., snow, permafrost in Canada and 
Alaska) 

. Moderate, temperate in the United States, Europe, and 
Latin America 

Desert in Middle East and Africa 

Tropical in North Latin America, Africa and the Far East. 

Application 2, Obstacle Bypass, is needed whenever pipelines are 
constructed. However, Application 1, Winter Season Extension, and 
Application 3, Compressor Station Transportation, are only needed 
where adequate conventional surface transportation to the construc- 
tion site and compressor stations is not available without signif- 
icant right-of-way preparation. From Section 5, this condition is 
estimated to exist for approximately 1000 miles of pipeline, world- 
wide . 


Thus, the market for heavy-lift services can be summarized as 
follows : 


2 winter sites per year, based on supporting those sites 
on the 1000 miles of pipeline that are inaccessible by 
road 

100 to 200 obstacles per year, based on an obstacle 
occurring once every 50 to 100 miles 

8 to 10 compressor stations placed per year, based on the 
requirement for one station every 100 to 120 miles along 
the 1000 miles of pipeline that are inaccessible by road. 


6. 9. 3. 2 The Required HLA Capabilities . This case study typifies 
Application 1 as transportation of 85 modules of equipment per site 
(ranging from 25 tons to 65 tons) over 50 miles, with 2 minutes of 
hover at each end for hook up and discharge. Application 2 consists 
of transportation of 550 men and 25 modules of equipment over a very 
short distance (2 minutes of low speed transport) with 2 minutes of 
hover at each end. Application 3 consists of transportation of 5 
75 ton compressor modules per station over 30 miles, with 2 minutes 
to hook up to the payload, and 5 minutes to emplace the modules at 
the destination. The operating times for each application for one 
site are detailed in Table 6-27. 

TAB LE 6-27. Operation Times for the Pipeline Construction 
Applications 


APPLICATrON 

AVERAGE HLA SPEED IMPHI 

25 

60 


ONE-WAY DISTANCE (MILES) 

r 

30 

50 

70 

30 

50 

70 

1 

ROUND TRIP TIME PER SITE (HOURS) 

204 

340 

476 

B5 

142 

198 


HOVER TIME PER SITE (HOURS) 



9.0/ 




OPERATING TIME PER SITE (HOURS) 

210 

346 

482 

91 

148 

204 


ROUND TRIP TIME PER OBSTACLE (HOURS) 

5.57 

2 

HOVER TIME PER OBSTACLE (HOURS) 



0.0/ 




OPERATING TIME PER OBSTACLE (HOURS) 



11.33 




ONE-WAY DISTANCE (MILES) 

20 

30 

40 

20 

30 

40 

3 

ROUND TRIP TIME PER STATION (HOURS) 

8 

12 

16 

3.3 

5 

6.7 


HOVER TIME PER STATION (HOURS) 



.ooo 



1 

OPERATING TIME PER STATION (HOURS) 

8.6 

12.6 

16.6 

3.9 

5.6 

7.3 


6.9.3. 3 "No-Ferry" Number of Vehicles, N . The number of 

NF 

vehicles required to satisfy 100 percent of the market are, for 
each application, 

/ Number of \ /Operating hours \ A \ 

\situations/ \ per situation //^Annual Utilization^ 

as shown in Table 6-28. 


6-86 















TABLE 6-28. No- Ferry Number of Vehicles to Satisfy 100% of the 
Pipeline Construction Market 


APPLICATION 

AVERAGE HLA SPEED (MPH) 

2B 

GO 

1 

ONE-WAY DISTANCE (MILES) 
OPERATING HOURS PER YEAR 

30 

420 

50 

692 

70 

964 

30 

182 

50 

296 

70 

408 

Nw 



ANNUAL 

UTILIZATION 

(HOURS) 

1,000 

1 

1 

1 

1 

1 

1 

2,000 

1 

_L_j 

1 

1 

1 

1 

2 

OPERATING HOURS PER YEAR 

MIN. 

MAX. 




Ny 

ANNUAL 

UTILIZATION 

(HOURS) 

1,000 

MIN. 



MAX. 



2,000 

MIN. 

1 


MAX. 

_ _ o 


3 

ONE-WAY DISTANCE (MILES) 
OPERATING HOURS PER YEAR 

- 

20 

30 

40 

20 

30 

40 

MIN. 

69 

101 

133 

32 

45 

58 

MAX. 

86 

126 



166 

39 

56 

73 

N^ (FOR ALL UTILIZATION, 

NF and OPERATING HOURS) 




6. 9. 3. 4 '*No-Ferry" Share of the Market/ ^p* threshold costs 

for each application were developed earlier in this section, and 
are as follows: 

. Application 1, $1.15M per site 
. Application 2, $ .185M per obstacle 

. Application 3, $ .40M per station. 

The average HLA costs for each application are functions of the 
required HLA capabilities previously outlined. Thus from the ex- 
pression derived earlier, the market share is as given in 
Table 6-29. 


6-87 



























































TAB LE 6-29. No-Ferry H LA Share of the Pipeline Construction Market 


APPLICATION 

AVERAGE HLA SPEED (MPH) 

2S 

60 


ONE-WAY DISTANCE (MILES) 

30 

50 

70 

30 

50 

70 

1 

AVERAGE HLA JOB COST ($M) 

.918 

1.414 

1.910 

.428 

.703 

.992 



0 

0 

0 

100 

100 

0 

9 

AVERAGE HLA JOB COST ($M) 



.047 




^NF 



100 




ONE-WAY DISTANCE (MILES) 

20 

30 

40 

20 

30 

40 

3 

AVERAGE HLA JOB COST ($M) 

.0367 

.0516 

.0665 

.0196 

.0267 

.0338 


»^NF 

100 

100 

100 

100 

100 

100 


6. 9. 3. 5 "No-Ferry" Number of Vehicles for Market Share . From 
the previous two tables the number of vehicles can be defined to 
satisfy the market assuming no ferry. The vehicles are the same 
as those described previously in Table 6-28, with the exception 
that no vehicles are now required at 25 mph in Application 1. 

6.9. 3.6 Effect of Ferry . Since there are so few vehicles for 
these applications, the effect of ferry is of little consequence 
to the total number required. 


6-88 

I 

























6.10 Case Study No. 7 

Heating/Ventilator/Air conditioning Unit Emplacement 

6.10.1 Current Operations 

In the construction industry many lifts are required. Most 
of these lifts, however, are repetitive lifts of small quantities 
for which on-site cranes are the least expensive and most effi- 
cient. There are two areas for which conventional cranes are not 
necessarily the least expensive and most efficient method. These 
are: 

. Emplacing air conditioner/heating/ventilation units on 
the roof of buildings 

. Emplacing window washing units on the roof of buildings 

. Dismantling cranes from highrise buildings. 

In these areas the operations of the Sikorsky Skycrane heli- 
copters, primarily Evergreen Helicopters, Incorporated of Atlanta, 
Georgia, have proven to the construction industry that these jobs 
can be performed by the Skycranes at competitive costs. 

6.10.1.1 Emplacement of Air Conditioner/Heating/Ventilation 
Units and Window Washing Units . These units can be lifted by 
helicopter in competition against conventional crane emplacement 
up to building height limits set by the capability of the cranes. 

A typical heating/air conditioning/ventilating unit is 20 ft. W x 
48 ft. L X 15 ft. H and weighs 60,000 pounds. Due to the current 
restrictions for over the road transport by the highways and the 
lifting capabilities of construction cranes and helicopters, these 
units are normally broken down into four modules each weighing 
15,000 pounds and measuring 12 ft. x 12 ft. x 15 ft. Normally two 
trailers are used to transport these units to their destination. 

The number of units required for each building varies greatly 
and is dependent upon the size of the area to be ventilated and 
the climatic conditions in the area. Typically these units are 
installed in office buildings, warehouses, factories, shopping 
centers, and similar structures. 

Window washing units are installed on building roofs, and 
weigh about 15,000 pounds. 

Construction estimators have two choices in the selection of 
the installation method when cranes can be employed: 

Conventional cranes 

. Skycrane helicopters. 


6-89 


ORIGINAL PAGE I- 
OF POOR QUALJTY 



The rule of thumb used by construction estimators is to allow 
up to $2000 for the emplacement of each 15,000 pound module on top 
of the building. This rule of thumb estimate is based on the 
average cost of bringing in and using a conventional mobile crane. 

Evergreen Helicopters estimates that the required revenue to 
operate the Skycrane is $5000 per hour. This is based on 750 
total operating hours per year including ferry time. The average 
ferry distance for each job is 800 miles at a speed of 100 mph. 
Thus, the ferry cost alone on each job is $40,000. For that 
reason. Evergreen does not bid jobs with less than 24 unit modules 
to be lifted. The exception is when the company can cluster 
several jobs. In those instances it can allocate the ferrying 
cost and thus stay competitive. 

At the construction site, ground personnel from Evergreen 
make all preparations at the site in advance of the helicopter's 
arrival to insure the highest possible productivity. The goal is 
to be able to place one unit every 3 to 5 minutes, or an average 
of 15 lifts per hour (range from 12 to 20 per hour) . The units 
are normally lifted from a nearby parking lot and placed directly 
on the roof by the helicopter with the assistance of the construc- 
tion crew. The total flying distance is 1,000 feet or less. 

The minimal mission time for the helicopter is thus: 

Ferry - 8 hours at 100 mph 8 hrs. 

Lift - 15 lifts/hr ea. 15,000 lbs x 24 (min) 1.6 hrs. 

Total mission time 9.6 hrs. 

For all jobs exceeding 24 units the helicopter is highly 
competitive with the conventional cranes and profitable for the 
operators. 

6.10.1.2 Application 2: Emplacement of Units Beyond Crane 

Height Limits . For emplacement of air conditioning, window wash- 
ing and other units on buildings beyond the limits of conventional 
cranes, even rooftop cranes become undesirable because of the 
difficulty of controlling the motion of the load, and the potential 
for damage to the load and the building. Thus the competition for 
HLAs lies in the use of helicopters. Since the need for this kind 
of installation is much less than for installation on less tall 
buildings and shopping centers, the cost of the helicopter per 
installed unit is greater. Tishman Construction advised that it 
is current practice to rent the services of a Skycrane helicopter 
for a day at a cost of $25,000, in order to install one 15,000 
pound window washing unit. The same cost would apply for the 
multiple lifts required for installation of a 60,000 pound air 
conditioning, heating and ventilating unit. 


6-90 


I 



6.10.1.3 Dismantling Construction Cranes . The conventional 
method of dismantling and lowering construction cranes from high- 
rise buildings is to install a small derrick crane on top of the 
building. This derrick crane then lowers the parts of the crane on 
the outside of the building. Another method is to lower the 
components down the elevator shaft. Both methods are time con- 
suming and costly. 

One case is presented with the dismantling and lowering of a 
construction crane from the top of a recently constructed hotel in 
the Peach Tree Center in Atlanta, Georgia. The contractor had 
estimated that the cost of dismantling and lowering the crane 
using conventional methods would be approximately $50,000. This 
contractor was running behind schedule and risked incurring penal- 
ties for late performance. The dismantling and lowering the crane 
by conventional means would have further delayed the completion of 
the construction job. The potential of lost revenues to the hotel 
owners, the inconvenience of having to cancel planned events in 
the hotel and the penalties that would accrue to the contractor 
made consideration of other means imperative. The contractor in 
this case contracted with Evergreen Helicopter to dismantle and 
lower the crane. In a time span of two hours the Evergreen Sky- 
Qj^ane was used to dismantle and lower to the ground 11 pieces 
weighing between 12,000 and 16,000 pounds. The total charges for 
the job was somewhat less than $50,000. 

The cost of the crane in question was $200,000. The ex- 
penditure of $50,000 by the contractor to be able to reuse the 
crane at another construction site was therefore well invested. 

On the other hand, if the cost of a new crane had been $50,000 or 
less, it is likely that the contractor might have chosen to scrap 
the crane by cutting it into pieces small enough to be lowered to 
the ground. 

6.10.2 Potential HLA Applications 

Both of the above applications were considered impossible to 
be performed until Evergreen Helicopters conceived the idea to use 
a Sikorsky Skycrane helicopter to perform special and difficult 
jobs. The Skycrane 's lifting capability is limited to about 
20,000 pounds and the operating costs per unit of lifting capacity 
is higher than the HLA. It is therefore hypothesized that the HLA 
can perform the same type of missions that are currently done with 
the Skycrane. 


6-91 



6.10.2.1 Application 1: Emplacement of Units Within Crane Height 
Limits . Currently , the components or modules are limited in 
weight to the lifting capability of helicopters or conventional 
cranes. The HLA will have the potential to at least duplicate the 
services provided by the helicopters and cranes and most likely 
provide improved productivity through the increased lifting cap- 
ability . 


(1) Scenario 

Two possible scenarios can be hypothesized: 

. The HLA is brought in to duplicate the services 
provided by helicopters and conventional cranes 

. The modules are preassembled at the ground into 

larger modules to capitalize on the larger lifting 
capability of the HLA. 


(2) Assumptions 

Under the first operating scenario it is assumed that 
the HLA operation will be identical to that of the helicopter 
described in the previous pages. 

For the second scenario the following assumptions are 

made : 

. The modules are assembled into complete units 

weighing approximately 30 tons by labor provided by 
the contractor 

. These units are rigged to be ready for pick-up and 
emplacement on the roof using the HLA 

. No significant slowdown in the turnaround time will 
result due to the larger weights carried. 


(3) Potential Cost Savings With HLA 

There are no cost savings provided by the HLA beyond 
those already being realized by the helicopter. 


6-92 



(4) HLA Threshold Cost 

The HLA threshold cost under both scenarios will be the 
cost of conventional emplacement, i.e., $2000 per 15,000 pound 
module or $8000 for each 60,000 pound unit emplaced. 


(5) Potential Operating Scenario for HLA 

The operations under the first scenario are expected to 
be identical to that of the helicopter. Once at the site, the HLA 
will be able to emplace one 15,000 pound section every three to 
five minutes or an average of 15 per hour. Under the second 
scenario productivity will increase fourfold by the fact that the 
HLA will lift one complete unit of 60,000 pounds every three to 
five minutes. 

6.10.2.2 Emplacement of Window Washing Units . Since these units 
are not modular, the same descriptions apply as in Application 1 
above, for the scenario where the HLA duplicates the helicopter 
services. In this case, however, the HLA threshold cost is $25,000 
per unit. 

6.10.2.3 Application 3; Dismantling of Construction Cranes . As 
with the previous application the HLA can either duplicate or 
increase the productivity achieved with a helicopter. 


(1) Scenario 

Two scenarios can be hypothesized: 

. The operations currently being performed by the 
helicopter are duplicated by the HLA 

. The crane is disassembled to the largest feasible 
subassemblies and either lowered to the street 
below or to an open area within a short distance of 
the construction site. 


(2) Assumptions 

It is assumed that the operations required under the 
first scenario will be identical to that of the helicopter. In 
addition, it is assumed that sufficient space is available for the 
HLA to lower the components to the street. 


6-93 



Under the second scenario, the above is supplemented by 
the following assumptions: The total 75-ton weight of the crane 

can be subdivided into three components weighing approximately 25 
tons each. These components can be lowered into the street to an 
adjacent parking lot or empty space. The larger components will 
not measurably affect the productivity of the HLA compared to the 
lowering of the smaller components. 


(3) Potential Cost Savings With HLA 

It is expected that the use of the HLA will not result 
in cost or time savings beyond those that can be realized by the 
Skycrane helicopters currently in use. 

(4) HLA Threshold Cost 

The HLA threshold cost will be the cost of lowering the 
crane by conventional methods. This cost is approximately $50,000. 

(5) Potential HLA Operating Scenario 

When the HLA has arrived at the scene, the operation is 
expected to be identical to that of the helicopter. The helicopter 
required a total of two hours to lower 11 components weighing 
between 12,000 and 16,000 pounds each. The average time required 
for each component was 10 to 11 minutes. 

Under the second scenario three pieces each weighing 25 
tons are lowered. With an average time requirement for each piece 
of 10 to 11 minutes, the total job can be performed in slightly 
more than one-half hour. 

6.10.3 Estimate of HLA Needed to Satisfy the Potential Market 

This estimate assumes three payload sizes selected to match 
the required lifts. 

6.10.3.1 The Annual Market . From Section 5, the annual market 
consists of 

. Application 1: Alternative (a) 4750 to 5200 7 . 5T lifts 

Alternative (b) 3250 to 4200 7 . 5T lifts, 

plus 250 30T lifts 


6-94 


Application 2: 5000 to 6000 7 . 5T lifts 

. Application 3: 250 to 300 25T lifts. 

6.10.3.2 The Required HLA Capabilities . In each application, the 
distance to be traveled is so short that the transport speed is 
low and the operation is essentially all hover. All lifts average 
about 4 minutes each. 

6.10.3.3 "No-Ferry" Number of Vehicles, N„ . The total number 

NF 

of each payload size to satisfy 100 percent of the market 

= (Lifts per year) (Hours per lift) / (Annual Utilization) 

The total number of 7.5 tons vary from 8000 to 11,000, plus 250 to 
300 25-ton lifts. These numbers require only 1 vehicle of each 
payload size, if ferry is not considered. 

6.10.3.4 "No-Ferry" Share of the Market , From the case 

study, the threshold cost ($K) for each application is as follows: 

. Application 1 (a), $2,000 per 7 . 5T lift 

1 (b) , $2,000 per 7 . 5T lift, and 
$8,000 per 30T lift 

. Application 2, $25,000 per unit 

. Application 3, $50,000 per crane. 

In Applications, 1 and 2, HLA average costs for 4 minutes of hover 
are $150 per lift for a 25-ton payload machine, with no ferry 
costs included. In Application 3, requiring approximately 30 
minutes of hover time with a 2 5- ton payload machine, average no- 
ferry costs are $950 per crane. 

Thus, with no allowance for ferry costs or the cost of other 
non-productive time, the market is very close to 100 percent. It 
is also clear that in all applications, significant non-productive 
time per lift can be accepted before the HLA would become non- 
competitive. In view of the small number of potential vehicles, 
the effect of ferry on these numbers is unimportant. 


ORiGiMAL PAGE it 
OF POOR QUALITY 


6-95 



6.11 Case Study No. 8 
Oil and Gas Drilling in Remote Areas 


6.11.1 Current Operations 

In areas where an adequate road infrastructure is available, 
the drilling rig equipment and supplies are transported in by 
truck. Most of the oil and gas reserves located in easily acces- 
sible regions with an adequate road network have already been 
explored and are currently in the production stage. Increas- 
ingly, the oil companies are forced to explore for oil and gas, 
and drill in remote areas with limited transportation infrastruc- 
ture. The areas explored range from the jungles of southeast 
Asia, Africa, and South America to the tundra of the north slope 
of Alaska. For oil and gas drilling operations, the helicopter 
has proven itself to be an efficient and viable means of trans- 
portation and the drillers have adapted their operations to the 
capabilities of the helicopter. 

The type of helicopters normally used for remote drilling 
operations are: 

. Bell 205 - payload capacity 4,000 pounds 

. Bell 215 - payload capacity 4,250 pounds. 

The cost of chartering these helicopters range from $400 to 
$500 per hour. 

In a typical remote drilling operation a staging area is 
established next to a barge landing, road, or railroad spur. The 
rig, all equipment and supplies are unloaded from the conventional 
means of transportation at this staging area. The average dis- 
tance from the staging area to the drill site is 50 km (30 miles). 
The following equipment and supplies are moved by helicopter in 

4.000 pound increments from the staging area to the drill site: 

^^tilling Rig . The drilling rig has been constructed so 
that it can be dismantled into 4,000 pound modules. A total of 
110 to 115 lifts each of 4,000 pounds would be required. Total: 

440.000 to 460,000 pounds. 

6.11.1.2 Drill Pipe . Total quantity required: 

500 lengths drill pipe and drill collar 4.5" 30 foot 
length - each 500 pounds. Total: 250,000 pounds 

. 40 drill joints - each 4,000 pounds. Total 160,000 

pounds . 


I 


6-96 



6.11.1.3 


Drill Casing . 


. 3,000 to 4,000 foot casing - weight: 54 pounds/foot. 

Total 160,000 to 220,000 pounds 

. 10,500 foot 9-5/8 inch casing - weight: 32 pounds/ 

foot. Total: 336,000 pounds 

14,000 - 15,000 foot 7-7/8 inch casing - weight: 29 
pounds/foot. Total 405,000-435,000 pounds. 

6.11.1.4 Fuel . The drill rig consumes 30 pounds fuel per day, 
and the total time of operation is 45 days up to 120 days. The 
fuel is brought to the site in a rubber bladder. Weight of the 
bladder is 250 pounds empty and holds 4,000 pounds of fuel and 
the total weight is 4,250 pounds. 

6.11.1.5 Crane . A 5,000 pound capacity crane is brought into 
the site. This crane is dismantled, brought to the site and 
disassembled. Weight of the crane is approximately 8,000 pounds. 

The total weight, which the helicopter has to transport to 
the site is therefore between 1,763,000 pounds and 1,873,000 
pounds. The helicopters have to make between 440 and 460 trips 
to carry the equipment and supply requirements to the site. 

Once the drilling operation is concluded, the rig and the 
crane have to be transported out again. This will require 
another 110 to 115 lifts. Total lifts for the project will 
therefore be between 550 and 585. 

Assuming that each round trip will require an average of 45 
minutes of flying time, and that the project is charged only for 
actual flying time, the cost of the helicopter is expected to be 
between $165,000 and $219,000. 

6.11.2 Potential HLA Applications 

One of the major limitations of a helicopter is its limited 
payload capacity and the necessity to make an inordinate number 
of trips in cases where large quantities of materials have to be 
transported. It is also at times inconvenient and costly to 
disassemble components at the origin to conform to the payload 
capacity of the helicopter and then reassemble at the destin- 
ation. The HLA can alleviate this problem through its larger 
payload capacity. 


6-97 



6.11.2.1 Application 1; Transportation of Drilling Rig and 
Supplies. The HLAS has operating characteristics that are sim- 
ilar but superior to that of the helicopter. It can therefore 
replace the helicopter to transport the rig and supplies between 
staging area and the drilling site. 

It has been indicated by the drillers that the largest 
practical components into which the drilling rig can be divided 
are 20-25 tons. The reason is that a 25-ton crane weighing 
approximately 20 tons is the largest practical unit to bring to 
the site to lift the components of the rig in place. The other 
supplies are brought to the site in increments suited to the 
maximum capacity of the HLA. 


(1) Scenario 

The scenario for the use of the HLA will be identical 
to that of the helicopter with the exception that the payload per 
trip with the HLA is increased from 4,000 pounds per trip to 
50,000 pounds (25 tons). 


(2) Assumptions 

The following assumptions are made: 

. The drilling rig can be shipped in relatively 
uniform components of 25 tons each 

. The round trip distance between the end of the 

road and the drilling site is 100 km (60 miles) . 


(3) Potential Savings with HLA 

Significant savings will accrue with the use of the HLA 
by being able to transport the components faster to and from the 
site, thereby reducing the overall time required for the project. 
With continuous operation eight hours per day, it will take the 
helicopter at least 10 days to bring the rig to the site, and 
another 10 days to take it from the site at the completion of the 
drilling operation. This is based upon eight-hour day continuous 
operation by the helicopter, which according to a driller with 
extensive experience using helicopters, is reasonable. The total 
cost to the driller both during the transportation and assembly 
of the rig and supplies, and during drilling operations is $15,000 
to $20,000 per day. The costs are the same whether drilling is 
performed or not, because in both cases all personnel and support 
services are required. 


6-98 



An HLA carrying the rig in 25-ton components can carry 
everything to the site in less than one day, and the same time to 
take from the site. It is therefore possible to reduce the total 
time required for the operation by at least 18 days (i.e., 20 
days to bring the rig in and out with helicopter vs. 2 days with 
HLA). At a cost of $15,000 to $20,000 per day, the cost savings 
that can be achieved using the HLA is therefore from $270,000 to 
$360,000. 


(4) HLA Threshold Cost 

The threshold cost for the HLA will be the sum of the 
cost of the helicopter plus the savings that will accrue by using 
the HLA. In this case it will be: 


Cost of using helicopters 

Potential cost savings 
with HLA 

Total HLA threshold cost 


low high 

$165,000 $219,000 

$270,000 $360,000 

$435,000 $575,000 


(5) Potential Operating Scenario for HLA 

The operating scenario will be as follows: 

. Round trip travel time fast HLA 66 minutes 

slow HLA 162 minutes 

. Hover time per round trip 9 minutes 

Total fast HLA 75 minutes 

slow HLA 171 minutes 

The average load to be lifted by the HLA will be 25 
tons. The total lifting requirement of the project can be there- 
fore accomplished with 44 to 47 round trips. The total time re- 
quired will be between 55 and 59 hours of actual operating time 
for the fast HLA, and between 125 to 134 hours for the slow HLA. 

6.11.3 Estimate of HLA Needed to Satisfy the Potential Market 

This estimate assumes that the crane segment dictates the 
payload size, which is assumed to be 25 tons. 


6-99 



6.11.3.1 The Annual Market. From Section 5, the annual market is 
estimated to consist of 100 remote sites at which exploration can 
take place. 

6.11.3.2 The Required HLA Capabilities . From the earlier sections, 
the task at each site will consist of 44 to 47 round trips, with 

a total hover time of 9 minutes per round trip. The total oper- 
ating time per site is given in Table 6-30. 

TABLE 6-30. Operating Times for Remote Drilling Site 


AVERAGE HLA SRCED (MPH) 

25 

60 

ROUND TRtP DISTANCE PER SITE (MILESI 

30 

60 

90 

30 

60 

90 

ROUND TRIP TIME PER SITE (HOURS) 

1.2 

2.4 

3.6 

.5 

1 

1.5 

AVERAGE TOTAL OPERATING TIME PER SITE (HOURS) 

60.75 

105.75 

166.75 

29.25 

51 75 

74.25 


6.11.3.3 

vehicles 


*'No-Ferry" Number of Vehicles , 
to satisfy 100 percent of the markef 


Total number of 
is given by 


(Number of sites per year) (Hours per site) 
(Annual Utilization) 


and this is given in Table 6-31. 


TABLE 6-31. No- Ferry Number of Vehicles to Satisfy 100% of the Remote 
Drilling Site Market 


AVERAGE HLA SPEED (MPH) 

25 

60 

ROUND TRIP DISTANCE PER SITE (MILES) 

30 

60 

90 

30 

60 


Nw 

''nf 

ANNUAL 

UTILIZATION 

{HOURS) 

1,000 

D 

11 

17 

3 

6 

8 

2,000 

a 

6 

9 

2 

3 

D 


6-100 


I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 

I 


I 



































From the case 


6.11.3.4 "No-Ferry" Share of the Market , 

study, the threshold cost is from $0.435M to $0.575M. The average 
HLA cost is given below. The market share factors are A=7.5 and 
B=25. Thus the market share is 100 percent as given in Table 6-32, 
and the number of vehicles are as previously defined. 

TABLE 6-32. HLA Market Share for the Remote Drilling Site 
Application 


AVERAGE HLA SPEED (MPHI 

25 

60 

ROUND TRIP DISTANCE (MILES) 

30 

60 

90 

30 

60 

90 

AVERAGE HLA COST PER SITE ($M) 

.12 

.21 

.30 

.05 

.09 

.13 

M^p(%) 

THRESHOLD 

.435 

100 

100 

100 

100 

100 

100 

COST <$M) 

.575 

100 

100 

100 

100 

100 

100 


6.11.3.5 Effect of Ferry on the Number of Vehicles . Using the 

expression and data derived in Section 6.3, the ratio jr— 

V 

NF 

and the number of vehicles with ferry are as shown in Table 6-33, 
as a function of k, the ratio of annual ferry hours to annual 
utilization . 



6-101 































TABLE 6-33. Ratio of "Vehicles With Ferry" to "No-Ferry Number 
of Vehicles" 


o 

s 

.721 

.373 

.916 

s 

CD 



CD 

CO 

1 


CM 

00 

cn 

O 

o 

CD 

1 

s 

.958; 

GO 

ps. 

1.24 

.916 

.829 


1.95 

.66 

CO 

cn 

00 

cn 

in 

o 

CM 



1.194 

1.066 

1.27 

CD 

LLi 

1.26 

2.08 

1.66 

B 

CO 

fl 

CO 

CD 

c*> 

B 

fl 

lA 

CM 




T" 


■ 

1 

1 

■ 


o 

B 

— 1 
o 

o 

o 

B 


09 

o> 

CO 


.661 

in 

00 

CM 

1 

1 

1 

1 

in 

o 

00 

B 

o 

B 

o 

— 

o 

o 

n 

.863 

.586 

1.018 

.806 

in 

1 

1.069 

CM 

CM 

CM 

■ 

CO 

00 

B 

B 

o 

00 

B 

AVERAGE HLA SPEED (MPH) 


1 

CM 

o 

s 

ooo'z 

§. 

2,000 

1 

2,000 

s 

2,000 

0001 



CM* 

1,000 



ANNUAL 

UTILIZATION 

(HOURS) 






LU 

-j 

s 

.435 

.575 


.575 

.435 

in 

ID 

.435 

.575 

UJ 

t 

09 

oc 

Ui 

CL 

UJ 

u 

2 

THRESHOLD 

COST 

s 




< 

o 

CO 

CO 

.66 

.33 

.66 

& 

£ 

o 

z 

3 

O 

GC 

(ANNUAL 

FERRY 

HOURS) 

(ANNUAL 

UTILIZATION) 

> 

Z 



6-102 


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6.12 Case Study No. 9 
Logging and Forestry 

6.12.1 Current Operations 

Forestry has come a long way from the time when easily acces- 
sible areas were cleared down to the stump and the logs transported 
out by the cheapest method available without regard to reforesta- 
tion, soil cultivation, and environmental considerations- Cur- 
rently, forestry is both an art and a science using modern agri- 
cultural and engineering methods to cultivate the land and to 
harvest the timber. It is recognized that the variables in modern 
forestry and logging practices are many. This case study will 
highlight some of the harvesting methods currently used under 
conditions that exist in the Pacific Northwest region of the United 
States and Canada. The case study will describe the methods, 
quantity, and reasonable or typical costs of these systems to 
provide a basis for comparison with the use of a heavy-lift airship 
in logging operations. 

6.12.1.1 Definition of Logging Functions . The total process of 
logging or harvesting of timber consists of a number of interre- 
lated functions and subfunctions. Each of these functions is 
described below* (Reference i 3 ) ; 


(1) Felling 

Felling describes the process of cutting down the tree. 
In most cases this is accomplished with power saws or other mech- 
anical equipment. 


(2) Bucking 

Bucking is the process used to cut a felled tree into 
segments. The segments of the tree after it has been bucked are 
called bolts or logs. If only the top of the tree is removed, it 
is called a tree-length log. 


All definitions are based on Steve Conway, "Logging Practices. Principle 
Timber Harvesting Systems" (Miller Freeman Publications, Inc.) , 1976, pp. 
50-54. 


6-103 



(3) Measuring 


Prior to bucking the tree, the tree is measured to 
insure proper length of the logs. The length is dependent upon 
the final use of the log and can vary from bolts of 100 inches to 
logs in excess of 50 feet in length. 


(4) Skidding or Yarding 

Once the trees have been bucked they have to be hauled 
to a landing area for further transportation to a lumber mill or 
pulp plant. This primary transportation from the stump to the 
landing area is called skidding. When cables, helicopters, or 
other aerial systems are used, the skidding process is often 
referred to as yarding. 


(5) Loading 

Loading refers to the placing of the logs or bolts on a 
haul vehicle at the landing area to further transportation to a 
transfer point for reloading onto another mode of transportation 
or directly to the lumber mill or pulp plant. The loading at the 
landing area and the transfer points is normally accomplished 
with mechanized equipment. 

6.12.1.2 Variables Affecting Logging Operations . There are 
numerous variables that affect the logging operations. Some of 
the major variables affect the selection of skidding and yarding 
methods (Reference 13) . 


(1) Volume Per Acre 

Volume per acre refers to the density of trees per 
acre. This variable will have great influence on the overall 
cost on logging a tract because there is an inverse relationship 
between the volume per acre and the logging cost. The volume per 
acre variable will affect the cost of the operation with minimal 
regard to the method of logging used. 


6-104 



The definition of high and low volumes per acre are 
highly dependent upon the type of cut (clearcut, partial cut, or 
salvage cut) , the logging system utilized, and the geographic 
location of the cut. In the Pacific Northwest a volume of 30,000 
to 35,000 board feet per acre is considered good for an area to be 
clearcut. A company operating in the southern states of the 
United States considers 800 to 1,000 board feet per acre a suf- 
ficient volume to start operation on selective cutting. A com- 
parable company in the Pacific Northwest, on the other hand, would 
be reluctant to start a selective cutting operation with a volume 
per acre of less than 8,000 to 10,000 board feet. 


(2) Volume Per Stem 

This variable is closely related to the volume per acre. 
Volume per stem refers to the volume per tree in an area. Gener- 
ally, the logging cost increases with decreasing tree size because 
more trees will have to be handled per unit of output. This vari- 
able will also affect the selection of equipment for the operation. 


(3) Defect 

Defect refers to the difference between the gross and the 
net scale or cubic measurement of the log. Loggers are always paid 
on a net scale which is the gross scale or measurement of the log 
with deductions made for defects in the logs. Defects may be 
caused by the felling, skidding, or transportation. The cost of 
operation per unit will be seriously affected with large amounts of 
defect in the timber. Thus, if it costs a logger $25 per 1,000 
board feet to deliver to a mill with no defect, the cost will 
increase to $35 per 1,000 board feet for the same lumber with 30 
percent defect (i.e., $25/. 7 = $35). 


(4) Topography or Terrain 

The topography or terrain will, to a large extent, 
(j 0 -t.ermine the type of logging methods that can be applied and also 
the extent to which logging can be performed, if at all. This will 
be both a matter of economic and technical feasibility of the 
various available methods. In steep grades, the efficiency of 
conventional skidding systems becomes low. In many cases, con- 
ventional skidding is completely impossible, and higher cost cable 
systems may have to be employed. 


6-105 


ORIGINAL PAGE 
OF POOR QUALITY 


(5) 


Environmental Variables 


Environmental variables refer both to the soil and the 
conditions in an area. Both have an impact on the logging 
methods that are to be employed. Environmental considerations 
regarding the soil conditions and the possibility of reforestation 

is loaaina certain equipment. An example 

^ Alaskan muskeg areas. Tracked machines and 

skidders cannot be used under these circumstances, and logqina 

have to be carefully constructed. Alaskan loggers Sve used 
oth cable systems and helicopters for yarding of the felled logs. 

Similarly, weather can seriously affect the logging 

snow, rain, and humidity may slow the operation 
hau!i^rS T some regions. In northern Canada, for examp” 

hauling of logs is limited to 110 days per year during the winter 
season, when the ground is solidly frozen. ^ 


( 6 ) 


Weight of Logs 


A major variable in selecting a skidding or yarding 
system is its capacity to carry the logs. Although most logs are 
measured in terms of their cubic measurement as cords, cunits or 
board feet, weight is the important factor in the skidding or 

operation. Table 6-34 presents the weight per cubic foot 
of some commercial species of lumber: iuot 


TABLE 6-34* Weight per Cubic Foot of Selected Commercial Species 


SPECIES 

LBS/FT^ 

SPECIES 

LBS/FT^ 

Red alder 

46 

Western larch 

48 

Yellow birch 

58 

Red oak 

63 

Alaska cedar 

36 

White oak 

62 

Western red cedar 

27 

Longleaf, shortleaf. 

Douglas fir (coastal) 

38 

and slash pine 

62 

Noble fir 

30 

Loblolly pine 

62 

Red fir 

48 

Lodgepole pine 

39 

White fir 

47 

Ponderosa pine 

45 

Black gum 

45 

Western white pine 

35 

Red gum 

50 

Yellow poplar 

38 

Eastern hemlock 

50 

Black spruce 

32 

Western hemlock 

41 

Sitka spruce 

33 

Hickory 

63 

Sweetgum 
Black walnut 

50 

58 


SOURCE: Caterpillar Tractor Co. 1972, p. 17. 


6-106 


































6.12.1.3 Comparison of Conventional Logging Systems . A recent 
study by the Forest Engineering Research Institute of Canada 
(FERIC) (Reference 14)* performed a detailed analysis of different 
logging systems in one 3,400 acre section of land in British 
Columbia. The volume per acre in this area is 120 cunits** of 
lumber. Logging of this area was simulated using five main logging 
systems : 


. Highlead logging 

. Running skyline with fixed spar 

Running skyline yarding crane 
Balloon 

. Heavy lift free flying vehicle. 

In each case, the main system was utilized to its optimal 
capabilities and supplemented with other yarding or skidding 
systems to the extent that these systems could be used more effec- 
tively than the main system. For each system, cost per cunit was 
calculated with respect to: 

. Road construction 

. Falling 

Yarding or skidding 

. Loading 

. Hauling. 

The input cost data for each of these functions were based on 
actual cost data derived from logging operations in terrain similar 
to that to be logged in the simulated 3,400 acre area. 

Logging is a system of closely interrelated functions, and 
the method used in one of these functional areas will affect all 
the other functions. The FERIC study presented a comparison of 
such logging systems and quantified the effects and costs of each 
on the overall system. The data in this study has been presented 
in a fashion that enables a direct comparison of the technical and 
economic feasibility of various yarding systems to an area which 
is considered relatively difficult to log. It was therefore 
decided to use this FERIC study as the basis for this present case 
study. One exception has been made in the description of existing 
logging systems. In the FERIC study, the Aerocrane is used as the 
vehicle representing a heavy lift, free flying vehicle, and the 
cost data are based on hypothetical operating costs. In this 
present case study the Aerocrane has been replaced with a Sikorsky 


B.J. Sander and M.M. Nagy, "Coast Logging: High Lead Versus Long Reach 

Alternatives," Forest Engineering Research Institute of Canada, Technical 
Report No. TR-19, December 1977. 

1 cunit = 100 cubic feet 


6-107 



S-64E Skycrane and the S-64F helicopters. With the exception of 
vehicle performance and cost data, all operating assumptions used 
in the FERIC study for the Aerocrane operation are used for the 
helicopter operation. 

The highlights of the findings of the FERIC study are pre- 
sented next. 


(1) Highlead Logging or Cable Logging 

Highlead or cable logging is used in difficult logging 
areas all over the Pacific Northwest. The system is simple and 
can be adapted to a variety of operating systems. The results of 
analysis showed: 


A total of 34.9 miles of road had to be constructed. 
The average road costs were $5.40 per cunit 

With the road network and accessability with this 
system the average falling cost was estimated to be 
$4.70 per cunit 

Three different methods of yarding were used. 

Grapple yarding was used within a 50-foot right-of- 
way at either side with productivity of 160 cunits 
per shift. Grapple loaders were also used to 
within 400 feet where applicable at a rate of 400 
cunits per hour. The yarding costs are summarized 
as follows: 


Acres Yarded 


Cost $/cunit (average) 


Right-of-way 412 
Grapple yard 813 
Highlead 2,427 


3.61 

7.34 

10.82 


Total : 


3,652 


($9.23) 


The total cost of this method can thus be summarized as 

follows : 


Road access and landing construction 

Falling 

Yarding 

Loading 

Hauling 


$5 . 40/cunit 
4 . 70/cunit 
9 . 23/cunit 
4 . 15/cunit 
6 . 37 /cunit 


Total : 


$29 . 85/cunit 


6-108 





(2) Running Skyline With Fixed Spar 

The running skyline system used in this example is 
illustrated in Figure 6-5. It consists of a three-drum yarder and 
a slackpulling carriage. The main function of the yarder is to 
supply the power for the system and the drums on the yarders are 
used to wind the wire used in the system. 


The analysis of the logging with this system showed the 
following results: 


A total of 24.5 miles of roads were necessary 
compared to 34.9 miles with the highlead because 
skyline yarding allows wider spacing of roads. The 
cost of access roads was estimated to be $3.50 per 
cunit 

The falling cost was estimated at $4.81 per cunit 

All of the yarding methods shown in the previous 
case was used wherever applicable and effective with 
the skyline. The yarding costs are summarized as 
follows : 


Acres Yarded Cost $/Cunit (average) 


Right-of-way 287 
Grapple yard 513 
Highlead 1,653 
Skyline 1,177 


3.61 

7.34 

10.63 

13.98 


3,630 


($10 . 69/cunit) 


The average loading cost from the various loading 
cost from the various systems used was estimated at 
$3.26 per cunit 


The average hauling distance was 13.13 miles and the 
average cost was $6.31. The cost of this system can 
be summarized as follows: 


Road access 

Falling 

Yarding 

Loading 

Hauling 


$ 3.50/cunit 
4 . 81/cunit 
10 . 69/cunit 
3 . 26/cunit 
6 . 31/cunit 


Total: $28.57/cunit 


6-109 


TAILSPAR 



FIGURE 6-5 Running Skyline System 



(3) Running Skyline With Mobile Yarder 

The basic difference between this system and the skyline 
3 yst.ero described above is that the yarder is mobile* This allows 
further flexibility of the system, which can reduce costs in all 
aspects of the logging operation. The results of the analysis 
were : 


Road building can be reduced to a total of 19.5 
miles of roads with an average cost of $2.88 per 
cunit . 

The average falling cost was estimated at $4.91 per 
cunit 

Yarding was performed by only two methods. The 
right-of-way 50 feet on each side of roads were 
cleared with a grapple loader and loaded directly 
onto trucks at a cost of $3.61 per cunit. A total 
of 267 acres were yarded this way. The remaining 
3,295 acres were yarded with the mobile yarder at a 
cost of $10.38 per cunit. Average cost of the 
operation was estimated at $9.87 per cunit 

A hydraulic heel— boom loader was assumed to be 
operating with the yarder and the average loading 
cost was estimated at $3.31 per cunit 


The average hauling distance was 12.5 miles at a 
cost of $5.05 per cunit. 


The summary of the costs with this system are therefore; 


Road Access 

Falling 

Yarding 

Loading 

Hauling 


$ 2.86/cunit 
4 . 91/cunit 
9 . 87/cunit 
3 . 31/cunit 
5 . 05/cunit 


Total: $26.00/cunit 


(4) Balloon Logging 

The first successful experiment using a balloon for 
logging was performed in Sweden in 1956. Several other successful 
experiments have been performed since that initial try. Currently, 
four commercial logging operations in the United States use balloon 
logging. The system used by these operations is depicted as 


6-111 



Figure 6-6. Basically, the balloon logging system is a high lead 
cable system, where the balloon is providing additional lift to 
enable yarding at distances of 3,000 to 5,000 feet. The balloon 
system can thereby reduce the length of the access roads and the 
environmental impact of logging-. 

The cost of balloon logging was estimated as follows: 

A total of 19.4 miles of access roads was necessary 
to log the entire area. Average cost of access 
roads was estimated at $2.92 per cunit 

The falling costs for this system were estimated at 
$5.14 per cunit 


In addition to the balloon, three other yarding 
systems were used. These were mobile grapple, 
direct loading of logs along the 50-foot right-of- 
way on either side of roads and highlead spear cable 
yarding. The balloon yarded 1,504 acres and the 
conventional systems 2,148 acres. The average cost 
was $15.07 per cunit 

Loading costs with this system were estimated at 
$3.71 per cunit. 


The cost of this operation can be summarized as follows: 


Road access 

Falling 

Yarding 

Loading 

Hauling 


$ 2.92/cunit 
5 . 14/cunit 
15 . 07/cunit 
3 . 71/cunit 
6 . 29/cunit 


Total: $33.13/cunit 


(5) Heavy-Lift Free Flying Vehicles 

As mentioned previously, the FERIC study used the Aero- 
crane as the concept representing current state-of-the-art of 
heavy-lift free flying vehicles. The operating cost of the Aero- 
crane was based on preliminary cost estimates. For this case 
study, it was decided to evaluate the Sikorsky S-64-E as the 
current heavy-lift free flying vehicle system since several of 
these helicopters are currently used in logging operations and 

^ fine alternative to an HLA. in addition, the Sikorsky 
S-64F version was also evaluated. None of the S-64F helicopters 


6-112 




0RSG5NAL PAGE 5:. 
OF POOR QUALITY 



are currently used, but Sikorsky has expressed interest in pro- 
ducing these vehicles for commercial operations. Operating cost 
data are available for both these vehicles. The operating costs 
are based on data supplied by Sikorsky presented as Table 6-35. 

The yarding costs for the helicopters alone, under assumptions of 
various operating hours per year, are summarized in Table 6-36. 

There are some problems that are peculiar to a helicopter 
logging system that do not exist with conventional systems. The 
major problems are: 

. The helicopter is more sensitive to adverse weather 
conditions than conventional systems 

. The aircraft requires more maintenance than con- 
ventional systems 

. The bucking loss can be considerable as is depicted 
in Figures 6-7 and 6-8 

The major advantages of helicopter logging are: 

Areas that previously were inaccessible can be 
logged with a helicopter 

. The environmental impact will be minimal. 

With the exception of the vehicle operating costs, all 
operating costs and assumptions were kept identical with the FERIC 
analysis. A summary of the costs and assumptions used in the 
FERIC analysis are: 

A total of 43 landings were assumed, and a road 
length of 8.3 miles were required to reach these 
landings. The cost of access roads and landings 
was estimated at $1.51 per cunit. 

. A total of 3,400 acres were accessed with this 

system. The average falling cost was estimated at 
$5.20 per cunit. 

. A total of 1,160 acres were yarded using conven- 
tional methods. The area yarded with conventional 
methods was limited to 700 feet from road access. 

The methods used were highlead spar cable system, 
grapple yarder in addition to direct loading in the 
50-foot right-of-way on either side of the road. 

The remaining 2,240 acres were logged by a 


6-114 



TABLE 6-35. Operating Costs- Sikorsky S-64E and S-64F 


ITEM 

S>64E 

S'64F 

1 INVESTMENT COST 



Firght Equip/nem 

2700,000 

6.100,000 

Support Equipment 

35,000 

43,000 

Spares 

212,000 

212,000 

Dynamic components 

"Power by hour" 

1.830,000 

Total 

2,947,000 

8,184.000 

7 FIXED ANNUAL COSTS 



Deprecjation (10 yrs ■ 25%) 

221 .025 

613.800 

Interest (10% • 60% aye. value) 

176,820 

491,040 

Insurance (6% fit equip) 

216,000 

4BB.000 

Personnel (per single shift} 



Pilots 

(3) 105,000 

(3) 105,000 

CoPtlots 

(31 75,000 

(3) 75,000 

Mechanics 

(5) 90,000 

(5) 90,000 


270,000 

270,000 

Burden 25% 

67,500 

67,500 

Total personnel 

337,500 

337,500 

Helium replacement 


- 

Env. refurbishment 



Total Fixed Annual 

951,345 

1,930,340 

3. HOURLY COSTS 



Fuel Aero 50 gal/hr 



X $1. 00/gat 

262.50 

262.50 

S64 525 gal/hr X 50/gal 



Oil 

13.12 

13.12 

Replacement parts A/F 

125.00 

125.00 

Dynamic System 0/H 

409.60 

463.80 

Engine 0/H & inspect. 

210.00 

210 00 

Misc. equip. 0/H 



Total Hourly 

1,020.22 

1,074,42 

4. Total Cost/Fit hr 



Utilization hrs/yr 

1,000 

1,000 

Fixed cost/hr 

951.35 

1,930.34 

Hourly cost 

1,020,22 

1,286 89 

Total costi fit hr S 

1.971.57 

3.217.23 

Utilization hrs/yr 

1,500 

1,500 

Fixed cost/hr 

634.23 

1,286.89 

Hourly cost 

1,020.22 

1.074 42 

Total cost/fit hr S 

1,654.45 

2361.31 

Utilization hrs/yr 

2,200 

2.200 

Fixed cosi/hr 

509 13 

954 13 

Hourly cast 

1,020.22 

1,074.42 

Total cosi/'fli ^>r S 

1,529 35 

2.028.S5 

Utilization hrs/yr 

3,000 

3.000 

Fixed cost/hr 

429.62 

755,95 

Hourly cost 

1.020. 22 

1,074 42 

Total cost/flt h' S 

1.449.84 

. 1 

1.830.37 


6-115 





TABLE 6-36. Yarding Costs for Sikorsky S-64F Helicopters 









FIGURE 6-7 Illustration of Bucking Value Loss of Medium-Size Tree - Douglas 
Fir (Density 50 Pounds Per Cubic Foot) 



NOTE f STANDS FOA FEELER AND S STANDS FOR SAWLOG (N ACCORDANCE WITH 
THE COLUMBIA RIVER LOG SCALIMG AND GRADING RULES. 


FIGURE 6-8 Estimate of Bucking Value Losses for Different Helicopter Payload 
Capacities and Large-End Tree Diameters (Douglas Fir) 



SOURCE: STEVE CONWAY LOGGING PRACTICES, PRINCIPLES OF TIMBER 

HARVESTING SYSTEMS, (MILLER FREEMAN PUBLISHING. SAN 
FRANCISCO) 1976, pp. 270-279. 


6-117 




heavy-lift free flying vehicle. The average yarding 
cost by the conventional methods were $8.89 per 
cunit . 

The loading costs differed from the yarding methods 
employed : 




Volume 

(cunits) 

Cost $/Cunit 
(average) 

Loading for 

conventional logging 

139,200 

2.95 

Loading for 
logging 

free flying vehicle 

268,800 

1.57 



408,000 

($2.04) 


The hauling costs differ also between conventional 
and free flying vehicle loading 


System 

Volume 

(cunits) 

Delay Factor 

Cost $/Cunit 
(average) 

Conventional 

139,200 

1.8 hours 

6.34 

Free Flying 
Vehicles 

268,800 

1.2 hours 

5.01 


408,000 


($5.46) 

In addition it 

is assumed 

that a total 

of three landing 


crews and three woods crews consisting of three men each are re- 
quired for each full 8-hour day operation. The cost of these crews 
are presented as Table 6-37 . The total crew cost is therefore 
$2,724 per 8-hour shift. 

The total yarding cost using the helicopters can thus be 
summarized in Table 6-38. 


The average yarding cost using the free flying concept 
assuming 2,200 hours of operation with an S-64E is therefore: 

Acres Yarded Cost $/Cunit 


Conventional 

Helicopter 


yarding 

Total 

Average 


1,160 

2,240 

3,400 

Cost/Cunit 


X 8.89 = $ 10312.4 
X 45.28 = $101427.2 

$111739.6 Total 
111739.6/3,400 = 32.88 


6-118 



TABLE 6-37. Cost for Crews 


Free Flying Vehicle Landing Crew: 


1 Front-end Loader 
1 Chokerman 
1 Bucker 

Overtinie: 

$58. 47/hour (all found! 

9.00/hour 
n. 30/hour 

$78.77/hour $1 26,032/vear 

4,500/year 
$1 30,532/year 

1 Crew sorts 250 cun its/shift 


$ 81.58/hour 

Woods Crews: 



3-Man Crew 

1 Rigging Slinger 

2 Chokermen 

Overtirne: 

Total Cost, 3-Man Crew 

$10.00 /hour 
18.00/hour 
S28.00/hour 

S 44,800 /year 
6,300/year 
$ 51,100/year 
$ 31.94/hour 


TABLE 6-38 Total Yarding Cost 




S-64E 

S-64F 1 

OPERATING HOURS/YEAR 

1500 

2200 

3000 

1500 

2200 

3000 

Cost/hr • hlelicopter 

$1654.45 

$1529.35 

$1449.84 

$2361.31 

$202855 

$1630.37 

Manhour cost shift 

$2724.46 




$2724.48 

$2724.48 

Helicopters cost 
per cunit 

S 40.06 

$ 37.03 

$ 35.11 

$ 46.03 

S 39.54 

S 35.68 

Manhour cost per 
cunii^ 

$ 8,25 

$ 8.25 

$ 8.25 

$ 8.25 

S B.25 

$ 8.25 

T otal cost per 
cunit 

t 

$ 48.31 

$ 45.28 

S 43.36 

$ 54.28 

S 47.79 

1 

S 43.93 


^ An 8-hoor operating day is assumed. 


ORIGINAL P>AGE li 
OF POOR Q5JALSTV 

































The cost for this system can therefore be summarized as 

follows : 


Road access 

Falling 

Yarding 

Loading 

Hauling 


$ 1.51/cunit 
5 . 20/cunit 
32 . 88/cunit 
2 . 04/cunit 
5 . 46/cunit 


Total $47.09/cunit 


The total cost of the various existing systems can 
therefore be summarized as follows; 




Proportion of 



logging performed 


Total cost/ 

by main 


Cun it 

System 

Highlead 

$29.85 

68% 

Running skyline with fixed spar 

28.57 

32 

Running skyline with yarding crane 

26.00 

93 

Balloon 

33.13 

41 

Skycrane helicopter 

47.09 

66 

As can be seen, helicopter 

logging is 

almost twice as 


expensive as existing systems. 


6.12.2 Potential HLA Applications 

The HLA has operating characteristics similar to that of a 
helicopter, although its payload is greater. There are limitat- 
ions to the maximum payload that can be successfully utilized in 
a logging operation. The reason is the density of the forest, 
which will limit the availability of trees. If the HLA has to 
pick up logs from two different locations to fully utilize its 
payload capability, the efficiency gained with an increased 
payload will vanish. It is, however, possible that a small HLA 
with a payload between 15 and 30 tons may be successfully used in 
competition with the existing yarding systems. 

6.12.2.1 Application 1; Logging Using HLA . The basic data for 
this analysis excluding the operating data on the Aerocrane were 
extracted from the study performed by FERIC. The logging opera- 
tion has been evaluated for both high-speed (Heli-stat) and slow- 
speed (Aerocrane) types heavy-lift airships. 


6-120 



(1) Scenario 


The scenario is identical to that described for the FERIC 
study previously mentioned. 


(2) Assumptions 

All operating assumptions are identical to those in- 
dicated for the helicopter yarding system described in the previous 
section, with the following exception: 

. The maximum payload that can yield an efficient 

operation in the tract described in the FERIC study 
for the Aerocrane is estimated at 16 tons. As is 
indicated in Figure 6-7, an average Douglas Fir 
weighs approximately 14 tons. Using longer chokers 
and a larger load for the yarding, it is assumed 
that a reasonable load for the HLA will be the logs 
generated from two felled trees. This will amount 
to a payload of approximately 28 tons. 


(3) Potential Cost Savings With HLA 

There will be no savings in costs with the HLA beyond 
those already realized with the helicopter. The savings with the 
helicopter are lower access road costs, loading and hauling costs. 
These savings are reflected by the lower costs for these functions 
in the context of the complete logging systems. 


(4) The HLA Threshold Cost 

The threshold cost per cunit loaded will differ con- 
siderably for the various current systems. In general terms, it 
can be expressed as : 

r (1,160 acres) $8.89 + (2,240 acres) xl _ „ 

^^FF |_ 3,400 acres J ^^n 

This can then be rearranged and expressed as: 

3,400 (“^^n " ^^Ff) - $10,312 
^ 2,240 


6-121 



where : 


X = HLAS threshold cost per cunit 

SCpp = System cost per cunit for heavy lift free 
flying system excluding yarding costs 
(i.e., $14.21) 

TC = Total cost per cunit of yarding system n 
n 

If we assume that the HLA will yard a total of 2,240 
acres and that 1,160 acres will be yarded by conventional systems, 
we find that the HLA threshold cost per unit will have to be lower 
than the following values for the HLA to be competitive with exist- 
ing systems: 

HLA Threshold Cost/Cunit 


System 1: Highlead $19.17 

System 2: Running skyline with fixed 17.19 

spars 

System 3: Running skyline with yarding 13.29 

crane 

System 4: Balloon 24.11 

System 5: Skycrane helicopter 45.28 


These threshold costs include the cost of field and 
landing crews at $340.50 per hour or $2,724 for an 8-hour shift. 

(5) Potential Operating Scenario with HLA 

The operating scenarios of several different HLA con- 
figurations and payloads are outlined in Table 6-39. By combining 
these operating scenarios with the threshold cost per cunit we can 
easily compute the HLA threshold cost per hour. 

As an example, the threshold cost for operating an HLA 
with a 25-ton payload and an average speed of 60 mph, in competi- 
tion with the highlead system will be: 

158 cunits per hour x $19.17 cost/cunit $3,028.86 

Field labor cost 340.50 

HLA threshold cost per hour $2,688.36 


6-122 


I 



TAB LE 6-39. Potential Operating Scenarios With H LA 


AVERAGE FLIGHT SPEED (MPH) 

10 MPH 

20 MPH 

30 MPH 

40 MPH 

Average flying time per cycle 

(min) 

9.1 

4.6 

3.0 

2.3 

Average cycle time 

(min) 

11.1 

6.6 

5.0 

4.3 

Cycles per hour 


5.0 

8.9 

10.9 

12.9 

Cunits 


15 

30 

50 

66 

78 

per 

Payload 






hour 

(tons) 

20 

40 

67 

87 

104 



25 

50 

84 

109 

129 



30 

60 

101 

131 

155 


^Assumptions; The average yarding distance is 4000 feet 

The average hook-up plus release time is 2 minutes 
A total of 5 minutes every hour is required for refueling 
Average density is 50 pounds per cubic foot 

If the payload is dropped to 15 tons, the HLA threshold 
cost per hour will be: 

92.4 cunits per 

hour X $19.17/cunit $1,771.31 

Field labor cost 340 . 50 

HLA threshold cost $1,430.81 

6.12.3 Estimate of HLA Needed to Satisfy the Potential Market 

This estimate assumes a range of potential HLA payload 
sizes, (15, 25, and 75 tons) to perform the work of the free- 
flying vehicle in this application. 

6.12.3.1 The Annual Market . From Section 5, the annual logging 
market, worldwide, is approximately 80,000 million cubic feet. 

An average log density of 50 pounds per cubic feet results in an 
annual market of 2000 million tons, equivalent to roughly 140 to 
160 million average fir logs. Assuming that the case study typi- 
fies the use of free flying vehicles in logging, 0.6 of the 
worldwide market is the potential market for HLA; that is 

48,000 million cubic feet, or 
. 1,200 million tons. 


6-123 



















6.12.3.2 The Required HLA Capabilities . From the case studies, 
the yarding distance can vary from 2000 feet to around 6000 
feet. From Table 6“ 5 in Section 6.3.5, it is evident that 
acceleration and deceleration will play an important part at 
these distances for speeds from 25 to 60 mph, and that these 
concise speeds cannot be reached at the shorter distances of 
interest. Table 6-40 gives the variation in operational time 
that would result from the case study conditions, to log the 
free-flying vehicle share of 3400 acres, a total of 26.88 million 
cubic feet (672,000 tons). 

TABLE 6-40. Operational Time for Logging Applications 


HLA CflUISE SPEED (MPH) 

25 

01 

YARDING DISTANCE lEEET) 



2Q00 

4000 

6000 

2000 

4000 

6000 

ROUND TRIP 



.07S 

2.32 



1.32 

*7.4* 

273 

3.94 

TIME PER CYCLE 



.1IM 


3.64^ 

5.4S* 

1.66 

54.7 • 

2.43 

3.64 

(MIMU 

FES) 



.12S 

2.12 



1.56 

175 

3.46 



■ 


.075 

3.32 



2.92 

3.73 

4.94 



m 

m X 

.100 




2.66 

3.43 

4.64 


LOAD 

■ 

S S 

< < 

s oe 

.121 

3.12 



2.56 

3.25 

4.46 

TOTAL 

CYCLE 

TIME 

(MINS.) 

AMO 

UNLOAD 

■ 

M 

MJ < WJ 
U U 


4.22 



3.92 

4 73 

i 5.94 

TIME 

PER 

CYCLE 

(MINS.) 


< O 


4.20 

5.64 

7.45 

3.66 

4.43 

5.64 

■ 



4.12 



3.56 

1 

4.25 

5.46 



■ 



5.32 



4.92 

5.73 

6.94 



B 



520 

664 

8.45 

4.86 

5.43 

6.64 



B 



5.12 



4.56 

5.25 

6.46 


6.12.3.3 "No-Ferry" Number of Vehicles , N . The total 

'^NF 

number of vehicles to satisfy 100 percent of the market is 
given by: 

(Tons of timber per year) (Vehicle operating hours per ton ) 

Annual Utilization ~ 

The "vehicle operating hours per ton" is the same as 
(vehicle operating hours per cycle) /tons per cycle), and the 
(tons per cycle) is equal to the paylod. 


6-124 























Therefore , 

_ (Tons Per year) (Operating tons per cycle) 

Vjjp (Payload) (Utilization) 

and is given in Table 6-41 for Utilization = 2000 hours. 


TABLE 6-41. Number of No-Ferry Vehicles for 100% of the Logging 
Market 


HLA CRUISE SPEED (MPH) 

25 

60 

YARDING DISTANCE (FEET) 

2000 

4000 

6000 

2000 

4000 

6000 

— 

Nw 

''NF 

ALTERNATIVE 

PAYLOAD 

SIZE 

(TONS) 

15 

LOAD 

AND 

UNLOAD 

TIME 

PER 

CYCLE 

(MINS.) 

1 

j 

2130 

3070 

4330 

1800 

2330 

3130 

2 

2800 

3730 

5000 

2470 

3000 

3800 

3 

3470 

4400 

5670 

3130 

3670 

4470 

25 

1 

1280 

1840 

2600 

1080 

1400 

1880 

2 

1680 

2240 

3000 

1480 

1800 

2280 

3 

2080 

2640 

3400 

1880 

2200 

2680 

75 

1 

430 

610 

870 

360 

470 

1 

630 

2 

560 

750 

1000 

490 

600 

760 

3 

690 

1 

880 

1130 

630 

730 

890 


6.12.3.4 **No-Ferry " Sh are of the Market , From the case 

study, the threshold cost is a function of several parameters, 
including the ground crew cost, which is in turn a function of 
vehicle operating time. Thus the threshold cost is also a func- 
tion of vehicle cruise speed, acceleration*, payload, turnaround 
time and yarding distance, as follows: 

Threshold cost per job = 

(Threshold cost per cunit) (Cunits per job) 


Note that 1 cunit = 100 cubic feet of logged timber, which, at an average 
of 50 pounds per cubic foot, weighs 2.5 tons. Thus "cunits per cycle" 

= (payloads per cycle/2.5) 


OR5G5NAL PAGE 
OF POOR QUAL5TY 


6-125 







































































where 


Threshold cost per cunit = 

/Conventional System\ - 14.21 - 8.89 (1-Y) 

\ Cost Per cunit* / 

Y 

/ Ground crew \ / Operational hours per cycle \ 

\Cost per Hour/ \ Cunits per cycle* / 

However, the variation in threshold cost introduced by vehicle 
kinematics is within 10 percent, over the range of values of the 
kinematic parameters. Thus, threshold cost is assessed with 
average values of these parameters, resulting in Table 6-42. (An 
average operating time per cycle of 5.0 minutes was used.) 


TABLE 6-42. Logging Application Threshold Costs 


CONVENTIONAL SYSTEM COST (S/UNIT) 

30 

47 

PERCENT JOB YAROED BY HLA IS) 

.6 

JB 

.6 

.8 

FIELD AND LANDING CREW COST (S/HR.) 

350 

500 

350 

500 

350 

500 

350 

500 

THRESHOLD COST 
(S/CUNIT) 

PAYLOAD 

(TONS) 

15 

15.5 

13.4 

12.6 

10.6 

43.8 

41.8 

33.8 

31.8 

25 

17.5 

16.2 

14.6 

13.4 

45.B 

44.6 

35.8 

34.6 

75 

19.5 

19.0 

16.6 

16.2 

47.8 

47.4 

37.8 

37.4 


The average HLA job cost for this application is as shown in 
Table 6-43. 


The market factors are A = 0, B = 32.5. These lead to the 
criterion that if HLA job cost is equal to or greater than the 
threshold cost, the market share is zero, while if the HLA job 
cost is less than .675 of the threshold cost, the share is 100 
percent . 

When competing with conventional surface logging systems, 
conventional system cost is on the order of 30 dollars per cunit, 
while the competitive helicopter system costs about 47 dollars 
per cunit. The corresponding market shares are given in Table 
6-44 for average threshold costs. 


6-126 










































TABLE 6-43. Average HLA Job Costs for Logging Applications 


HIA CRUISE SPEED IMPHI 

25 


60 


YARDING DISTANCE IFEETI 

r 

2000 

4000 

6000 

2000 

^000 

6000 






1 

51 

0 

0 

too 

34 

0 




IS 


7 

0 

0 

0 

34 

0 

0 






3 

0 

0 

0 

0 

0 

0 






1 

100 

25 

0 

too 

100 

60 



PAYtOAD 

2S 

LOAD 

2 

65 

0 

0 

100 

58 

(1 


SURFACE 

ITONS) 


AND 

3 

11 

0 

0 

56 

0 

0 





UNLOAD 


100 

100 

41 

100 

100 

100 




75 


1 j 

2 

too 

70 

0 

100 

100 

93 






3 

99 

30 

0 

100 

93 

54 


— 


THE MARKET SNARE IS 100% FOR AIL VARIATIONS 


TABLE 6-44. HLA Market Share for Logging Applications 


HLA CRUISE SPEED IMPH) 

25 


60 


YARDING DISTANCE IFEETI 

2000 

4000 

GOon 

2000 

4000 

6000 





■ 

10.9 

16.9 

22.9 

82 

11.5 

148 



IS 


m 



263 

lU 

150 

18.3 





B 

178 

23.8 

29.7 

15.1 

18.4 

21.7 

HLA JOB 
COST 



LOAD 

AND 


mm 


19.2 

69 

97 

12.4 

PAYLOAD 

(TONS) 

25 

UNLOAD 

TIME 

B 







IS/UNIT) 



PER 

CYCLE 

B 










(MINS^I 


n 










B 











B 


16 1 

202 



BUfl 


6.12.3.5 *' No-Ferrv" Number of Vehicles to Satisfy the Market 
Share, N„ . The market currently is satisfied mainly by conven- 
^NF 

tional logging techniques, with a small proportion satisfied by 
helicopters. Assuming that the helicopter proportion is H, then 
the total number of HLA to satisfy the market r / is 


6-127 











































H- H 


']®V 

NF 


Combining Tables6-41 and 6-44, and assuming H=.05, .10, provides 
the total number of vehicles required (assuming no ferry) against 
all competition. This is given in Table 6-45 for utilization of 
2000 hours. Note that where M^p=0, N is equal to HN , and 

''nf ''nf 


where =1.00, N = N . 

NF NF 


TABLE 6-45. Number of HLA to Satisfy the HLA Share of the Logging 
Market 


HLA CRUISE SPEED (MPH) 

25 

60 

YAROI 

NG DISTANCE (FE 

ET) 

2000 

4000 

6000 

2000 

4000 

6000 

''nf 

<*/••) 

ALTERNATIVE 

PAYLOAD 

SIZES 

(TONS) 

15 

1 

LOAD 

AND 

UNLOAD 

TIME 

PER 

CYCLE 

(MINS.) 

1 

1138/ 

'1190 


216/ 

'433 

1800/ 

'l800 

869/ 

'946 

156/ 

^313 

2 

140/ 

'280 

186/ 

'373 

250, 

'500 

921/ 

'1003 

150/ 

'300 

190/ 

'380 

3 

173/ 

'347 

220/ 

'^0 

283/ 

'567 

156/ 

'313 

183/ 

223/ 

'447 

25 

1 

1280/ 

M280 

529/ 

'598 

130/ 

'260 

1080/ 

'l080 

1400/ 

^1400 


2 

1185/ 

'1211 

112/ 

'224 

150/ 

'300 

1480/ 

'l480 

1082/ 

1 M120 

114, 

'228 

3 

321/ 

^414 

132/ 

^264 

r 170/ 
'340 

1094/ 

'll36 

1 110/ 
<Z20 

134/ 

"768 

75 

n 

430/ 

^30 

610/ 

'610 

870/ 

'870 

360/ 

'360 

470/ 

'470 

630/ 

'630 

2 

560/ 

^560 

536/ 

^548 

50/ 

^100 

490/ 

M90 

600/ 

'600 

709/ 

'712 

3 

690/ 

'690 

295/ 

'326 

66/ 

M13 

630/ 

'630 

681/ 

'684 

501/ 

'522 


*5% of the conventional market taken by helicopter. 
**10% of the conventional market taken by helicopter. 


6.12.3.6 The Effect of Ferry on the Number of Vehicles . Using 

w N„ 

the expressxon and data derived in Section 6.3, the ratio — 

NF 

is as shown in Table 6-46, covering the range of yarding distance, 
acceleration, and load/unload times previously examined, and 
(annual ferry) / (utilization) values up to 0.6. 


6-128 



















































TABLE 6-46. 


Ratio of "Number of Vehicles With Ferry" to "No-Ferry 
Nuntier of Vehicles." for Logging Applications 



6-129 





























6.13 Case Study No. 10 

Load and Discharge of Containers in Congested Ports 
6.13.1 Current Operations 

In the past 12 years since Sea-Land Service Incorporated 
inaugurated its first international container ship service on the 
North Atlantic between the U.S. east coast and Europe, a virtual 
revolution in liner cargo handling has taken place. By 1970, all 
major trade routes between developed nations were containerized 
and most major ports in developed nations were equipped with 
highly efficient container cranes and handling equipment. Simul- 
taneously, with the development of container vessels, other cargo 
unitization concepts like roll-on/roll-off (Ro/Ro) ships and barge 
carrying vessels (LASH and SEABEE) were developed. At the present 
time, approximately 60 percent of U.S. flag liner capacity is 
accounted for by container/Ro-Ro/barge carrying vessels and it has 
been forecast that this proportion may increase to 85 percent by 
1985.* (Reference 11) 

By the early 1970 's, containers were increasingly transported 
to ports in the developing nations. These containers were mainly 
carried on the decks or in the holds of conventional break-bulk 
vessels. The containerization of the trade to and from developing 
nations has been hampered primarily by the primitive port and 
transportation infrastructure that exists in many of the countries. 
This less developed infrastructure has frequently caused major 
pileups of cargoes in the ports because of inability to move the 
cargoes efficiently into and out of the port area. 

The congestion problem reached catastrophic proportions in 
OPEC member nations following their sudden increase in oil income 
and wealth as a result of the 1974 ten-doubling of crude oil 
prices. The oil-nations in the Persian Gulf and Nigeria started a 
crash program to develop their nations with goods purchased from 
the industrial world. The ports and transportation infrastructure 
in these nations were far from prepared to handle the enormous in- 
crease in cargo load. The result was a massive congestion problem 
and ships had to wait at anchorage up to 180 days to be able to 
dock. To bypass this congestion, liner operators started to bring 
in highly efficient Ro/Ro vessels, which require minimal shore- 
based cargo handling equipment for loading and discharge. Con- 
gestion surcharges ranging from 30 percent up to 300 percent were 
imposed upon all cargoes to and from these ports. 


Draft Report, Delex Control No. D76-6745-I, "The Potential of Air Systems 
in Short Haul, Heavy Lift Applications," Department of the Navy, October 
19, 1976. 


6-130 ORlGsNAL PAGfe ? 

OF POOR QUAUfV 

I 



According to a study by UNCTAD*, (Reference 15) the average 
cost for loading and discharging unit load cargoes like container- 
ized cargoes in inefficient, less developed ports are $5.45 per 
ton of cargo. The weight of a typical 40-foot container is 16 
tons. Consequently, the costs of unloading a container at a port 
would be $87. The same UNCTAD study has estimated that the daily 
cost of a containerized vessel is $15,000, while the cost of a 
conventional break-bulk vessel is $4,000 per day. With such costs 
even minor delays caused by congestion or unavailability of a 
berth can be extremely costly to the ship operators and ultimately 
to the shippers and consignees who have to pay for these costs in 
higher freight rates. 

In seriously congested ports, two solutions to the problem 
have been tested with good results: 

. Unloading cargo and containers onto trucks or chassis 
placed in converted landing craft 

. Unloading cargo and containers onto trucks or chassis 
placed on converted deck barges. 

The first solution is currently operated by a joint-venture 
between Norwegian and Saudi Arabian interests in Saudi Arabian 
ports. The company bought several surplus American landing craft 
which were modified to enable the handling of containers and were 
equipped with Roll-on/Roll-off ramps. These landing crafts can 
normally accommodate four 40-foot chassis. A reasonable operating 
cost per day of these landing crafts is $1,000 to $1,500 per day. 

The second solution is used in the port of Lagos, Nigeria, 
where Nigerian interests purchased four carfloats formerly used to 
transport railroad cars between New Jersey and Brooklyn. These 
carfloats have dimensions of approximately 360 feet by 38 feet. 
These carfloats were refurbished, equipped with Roll-on/ Roll-off 
ramps, and equipment to secure the chassis on deck. The total 
cost of the four carfloats delivered to Lagos, Nigeria was $1 
million. Each carfloat requires the service of a harbor tugboat 
with 1,500 to 2,000 hp, which will cost between $1,500 to $2,000 
per day to charter. This estimated charter cost is based on the 
tugboat industry's rule of thumb of $l/hp/day. 

The operation of the converted landing craft and carfloat 
systems are very similar. The sequence is: 


* Technological Change and Its Effect on Ports: Cost Comparisons Between 

Break-Bulk and Various Types of Unit Load Berths, UNCTAD Study, Ref. 
TD/B/C. 4/129/Supplement 2. 


6-131 



. Empty flatbed or container chassis are driven onboard and 
positioned on the vessel, while the barge/landing craft 
is at the landing site or port facility 

. The deck barge/landing craft is sailed to the anchorage 
of the ship to be unloaded and moored alongside 

Cargo or containers are unloaded onto the flatbed or 
container chassis placed on the deck of the barge/ 
landing craft 

When all the chassis are loaded, the barge/landing craft 
returns to the landing site where the chassis are driven 
off with trailer tractors 

. Cargoes to be exported from the port which have been 

loaded onto chassis in the staging area are driven onto 
the barge/landing craft to be taken to the ship for 
loading with ship's gear. 

The operation described above requires the following condi- 
tions to be fulfilled: 

The ship anchorage has to be within a protected harbor 
with calm seas 

A permanent or temporary Ro/Ro berth has to be available 
to load and discharge the barge/landing craft 

The ship to be loaded and discharged has to be geared and 
equipped with cargo handling equipment. 

Most conventional break-bulk vessels are geared and equipped 
with cargo handling equipment for loading and unloading. Operators 
of containerships are reluctant to equip their vessels with gantry 
cranes because approximately 10 percent of the cargo carrying 
capacity is lost. In addition, the investment required for the 
cranes is high and the utilization is low. 

The cost of this operation is expected to be at least equal 
and could possibly exceed the cost of cargo handling by conven- 
tional means because the number of handling operations, equipment, 
and manpower required will at least equal and in most cases exceed 
conventional operations. It is therefore estimated that the cost 
of these operations will be $5.45 per ton plus the cost of the 
vessels used. 


6-132 



Congestion caused by an overloaded port facility and an un- 
developed infrastructure are often conditions that will exist for 
long period. Congestion alleviation can only result when cargo 
flows are reduced or the port and infrastructure is improved. 

There are also congestions that occur due to natural catas- 
trophe, sudden breakdown of equipment, strikes, or other completely 
unpredictable causes. Examples of such occurrences include: 

The hurricane that hit the containerports in Taiwan which 
destroyed the container cranes in the port. Container- 
ships with cargoes for Taiwan had to be diverted to other 
Asian ports, transloaded to geared containervessels and 
shipped to Taiwan. Several floating cranes were brought 
to the port but their limited capacity caused severe 
back-up of ships and cargoes in the port. It was several 
months before the port was operating normally. In the 
meantime, the trade-oriented economy of Taiwan suffered 
and all major container operators serving Taiwan suffered 
great losses. 

In the port of Baltimore, Maryland, two of their four 
container cranes were made inoperable by strong gusts of 
wind. The result was a vast back-up of cargo and con- 
tainerships in the port. This incident caused lost 
revenues and costs both to the Maryland Port Adminis- 
tration and shipowners. 

. In the case of a strike in a port, it might be desirable 
for container operators to steam to a nearby neutral port 
to unload their cargoes to avoid incurring the tremendous 
financial burden of having a capital intensive contain- 
ership idle for a long period. This possibility may be 
precluded either due to the lack of container unloading 
facilities at the nearby port or due to draft restric- 
tions in the inner harbor. 

Under such circumstances which are clearly temporary, more 
permanent solutions requiring long lead times to position the 
equipment in the port may not be feasible. 

6.13.2 Potential HLA Applications 

Port congestion due to limited port cargo handling facilities 
and transportation infrastructure, natural catastrophes or other 
circumstances decommissioning a port is a temporary condition. 

Long term solutions are always available, but these solutions often 
have long lead times. Thorough planning is required and vast 
inputs of manpower, equipment, and other resources are necessary. 



Until these long term solutions become workable, temporary solu- 
tions that can be implemented fast and efficiently are required. 

The HLA presents one such temporary solution to the port congestion 
problem. 

The HLA is a capital intensive operation which has to be 
operated efficiently. Efficient operation can be achieved with the 
HLA in congested ports, if its use is limited to containers or 
other large unitized loads. In such an operation, standardized 
containers or loads of relatively high weight (average 16 tons, 
maximum 30 tons) can be transported with a standard loading gear. 

It is doubtful that the HLA can be utilized efficiently in the 
unloading of break-bulk cargoes. Break-bulk operation is normally 
a time-consuming procedure whereby small loads on pallets, in 
slings or nets, (generally not exceeding three to four tons) are 
lifted in each operation. It would be impractical if not impos- 
sible to attempt to lift break-bulk loads exceeding ten tons out of 
the hatch of a conventional vessel. This potential application is 
therefore disregarded in this analysis. 

Two potential applications for the HLA in congested ports are 
considered : 

. As a semipermanent solution to long term congestion 
problems in competition with alternate solutions 

As a solution to the congestion problem where no alter- 
natives are available for a container vessel. 

These are described below: 

6.13.2.1 Application 1: Semipermanent Solution . The ports of 

several countries on the west coast of Africa have experienced a 
major congestion problem caused by a rapid increase in cargo flows. 
Cargoes are piled up in the warehouses and a number of ships are 
waiting for extended periods at anchorage before berthing. The 
situation is such that the liner operators serving the ports have 
imposed congestion surcharges on all cargoes going to the ports and 
countries. The port authorities in the various ports involved, 
ship operators and several entrepreneurial stevedoring companies 
are considering alternatives for lighterage of the ships at anchor- 
age to ease the burden of the congestion. Three alternative light- 
erage options are investigated: 

. Converted landing craft 

. Ro/Ro deck barges/tug combinations 

. High and low speed heavy-lift airships. 


6-134 



(1) Assumptions 

The following assumptions are made; 

. The total cost of a converted landing craft in- 
cluding amortization of the vessel is $1500 per day 

The cost of the barge/tug combination including all 
operating costs is $2000 per day 

. The number of handling operations and manpower 
required with the landing craft and barge/tug 
options will equal or exceed a conventional loading 
and discharge operation. The cost of operation with 
these methods will therefore equal the cost for a 
conventional operation indicated by the UNCTAD study 
at $5.45 per ton plus the cost of the vessels 

The cost of $15,000 per day for an average con- 
tainership indicated by the UNCTAD study is assumed 
to be a reasonable estimate 

. No additional handling cost will be incurred with 

the HLA. The minimal stevedore work required on the 
ship can be accomplished by the ship's crew. On 
the shoreside staging area, the airship can position 
the containers on the ground 

. The operating scenarios described in Table 6-47 are 
based on data obtained from the Navy and MarAd, and 
are assumed to be representative of ideal lighterage 
conditions for all modes evaluated 

The HLA can be equipped with spreaders to lift up to 
three containers out of the containership cell 
structure . 


(2) Potential Savings with HLA 

There are tremendous costs associated with port con- 
gestion. These costs are associated with costs of having cargoes 
sitting in warehouses and in ships for extended periods, spoilage 
and damage to cargoes due to extended storage and transit times and 
the costs of the vessels in which the cargo is held awaiting un- 
loading. In this case there are several alternative solutions to 
bypass the congestion and each will have virtually the same poten- 
tial cost saving. The HLA will therefore have no additional ad- 
vantage over the other solutions in terms of potential savings. 


6-135 


ORIGINAL PAGE il 
OF POOR QUAL8TY 



TAB LE 6-47. Operating Scenario-One-Way Container T raffle 


I 

I 



TYRE OF 

lighterage 

VESSEL 
cost/oav 
(B MRSI 

CARGO 

BASELINE 

COST/TON 

container 

CAfACITY 

(40FTt 

SFEEO 

(MFHl 

VESSEL LOAD/ 
UNLOAD TIME 

SHORE 

LOAD/UNLOAO 

TIME 

TOTAL 

MOORING 

TIME 

ROUNO TRIR 
TRANSIT TIME 
IMINSI 

DISTANCE IMILESI 

REN CONTAINER 


2 

4 

6 


1 jndMtQ Crjlt 

SIbUO 

S5l45 

4 

8 

^ min 

5 m<n 

10 mm 


30 


OME WAV 

B<0^rTuq 

S2000 

SS 4S 

20 

4 

5>n.n 

b nim 

10 mm 


60 



HLA. High S(MtJ 



I 

60 

3 

2 1 





C(M4TAINER 




2 

60 

2 


NA 

2 

4 

b 





S 

60 

123 

66 1 





TRAFFIC 

HLA. Lom SVMrd 



1 

2& 

3 

^ 1 









2 

?S 

2 

' ! 

NA 

4.8 

9.6 

14 4 





3 

25 

1.33 

66 1 






L^nilinB Ctali 

SI600 

SS 4S 

4 

6 

5 «TMn 

5 intn 

10 mm 

- 

MM 


TWO WAY 

a^Vv/Tu« 

S2000 

*54!> 

20 

4 

6 min 

b mill 

10 mm 

- 


- 


HLA. Hiyt> Sf>c«cl 



1 

60 

3 

' 1 



MM 


container 




2 

60 

2 


NA 

2 


6 





3 

60 

1 33 

66 ) 





TRAFFIC 

HLA. L(M> 



I 

25 

3 

^ 1 









2 

25 

2 


NA 

4.8 

B6 

14.4 





2 

25 

1 33 

66 1 






I 

f 


m 

TYRE Of 

lighterage 

TOTAL TIME 
RER trir 

IMINS) 

TRIPS RER 
S HOUR DAY 

TOTAL CONTAINERS 
RER • HOUR DAY 

HANDLING 
COST RER 
CONTAINER 

VESSEL CUST7 
CONTAINER 

ITOTAl cost/ 
CONTAINER 

DISTANCE (MILES! 

DISTANCE (MILES} 

DISTANCE MILES! 

2 

4 

6 

2 

4 

6 

2 

4 

• 


L40ilin9 Cr»li 


00 


- 

B 

_ 


24 

_ 

SB 7.00 

$62.50 

SI 50 00 

ONE WAV 

8<tfy>/Tug 

- 

270 

- 

- 

2 

- 

- 

40 

- 

SB7.00 

S50 00 

SI37 00 


HLA Spwd 








69 

53 

44 

NONE 



container 


7 

9 

1 1 

69 

S3 

44 


!38 

106 

88 

NONE 












207 

159 

132 

NONE 



TRAFFIC 

HLA. Low SpwO 








49 

33 

26 

NONE 





98 

146 

18 4 

49 


25 


98 

66 

bO 

NONE 












|!47 

99 

7b 





Landing Crafi 


170 


_ 

4 


m 

32 


$87.00 

$47.00 

S134 00 

1 WOWAV 

Baigi/Tug 

- 

4 70 



1 

- 


40 


S87 00 

ssooo 

SU7 00 


HLA. Hi^ Sp«4d 








80 

68 

60 




CONTAINER 


12 

14 

16 

40 

34 

30 


ICO 

136 

120 














204 

180 1 




TRAFFIC 

HLA LowSfMWl 









48 

40 






14.8 

196 

24.4 

32 

24 

20 



9b 

SO I 














144 

120 


1 



6-136 


I 

I 

I 

I 

I 


I 










































































(3) HLA Threshold Cost and Potential Operating Scenarios 

The threshold cost of the HLA will equal the cost of the 
alternatives that are available. The threshold costs under the 
different operating scenarios and different types of operations are 
described in Table 6-47. 

6.13.2.2 Application 2: HLA as a Solution to Congestion With No 

Alternative Available. There are situations or conditions where 
alternatives to the HLA are not feasible or available. Examples 
of such situations or conditions are: 

. No temporary or permanent Ro/Ro landing facilities are 
or can be made available for Ro/Ro landing craft or 
barges 

The ships to be loaded and discharged have no cargo gear 
or cranes, and floating cranes are not available to load 
and discharge vessels at anchorage. 

Under such circumstances, there are no alternatives to the HLA 
other than to wait for an available berth. 

A typical scenario could be as follows: 

A new containerport in a developing nation is 
experiencing demand for its services beyond its cap- 
ability by a sudden influx of new container liners 
operating to the port. This has at times caused delays 
with waiting times up to ten days for arriving contain- 
erships. All these containerships are not equipped with 
self-sustaining gantry cranes, and are therefore forced 
to wait their turn at the container berths to use the 
services of the crane. Container operators are con- 
sidering using the services of the HLA to bypass these 
delays and to be able to maintain their schedules. 


(1) Assumptions 

All assumptions are the same as are described for the 
previous application. In addition, it is assumed that the only 
alternative to the HLA is to wait for a berth. 


(2) Potential Savings with HLA 

A container vessel is a highly capital intensive trans 
portation mode with major investments tied up in both containers 


6-137 



and vessels. The cost per day on a 24-hour day is estimated in 
the UNCTAD study to be $15,000. Thus, for each day of idle waiting 
time that is eliminated through the use of the HLAs, the vessel 
operator will save $15,000. 


(3) HLA Threshold Cost 

The HLA threshold cost will be equal to the cost of 
unloading the containers by conventional means which is $5.45 per 
ton or $87 for the typical 16-ton container plus the savings that 
can accrue due to reduction in the time the ship has to wait for a 
berth. The HLA threshold cost per container can be expressed as 
follows ; 

HLA TC/cont = 87 + Td + N(t^ - tjj^^)/8l (15000/N) 


where : 

N = No. of containers to be handled 

D = No. of days delay in the absence of HLA support 

t^ = Unloading time per container using conventional 
equipment (hours) 

tflLA ~ Unloading time per container using HLA (hours) 


Thus, if 100 containers are to be unloaded, the vessel 
has to wait for three days to berth if the HLA was not available, 
then the HLA threshold cost per container would be $680 to $880 
with the high speed HLA carrying one container each round trip. 
The threshold cost in the same situation, with HLA carrying three 
containers one way in each round trip, would be $830 to $1050 per 
container . 


(4) HLA Operating Scenario 

The operating scenario under different assumptions of 
carrying one or multiple containers was described in Table 6-47. 

6.13.3 Estimate of HLA Needed to Satisfy the Potential Market 

This estimate assumes that although 16-ton is considered to be 
an average container weight, a fully loaded container can have a max- 
imum weight of 25-ton. Thus two sizes of HLA are considered; 25-ton 


6-138 



J 


/ 


,v 

y 


payload for single containers, and 75-ton payload for three 
containers aggregated into a single load. 

6.13.3.1 The Annual Market. From Section 5, the annual market 
is expressed as 325,000 to 575,000 16-ton average container lifts 
per year. 

6.13.3.2 The Required HLA Capabilities . The typical operating 
times were given in the previous section in Table 6-46 for one- 
way and two-way container traffic. 

6.13.3.3 "No-Ferry" Number of Vehicles, N„ . The total number 

NF 

of vehicles to satisfy 100 percent of the market is given by 

/Total Number of Containers\ /Vehicle Operating Hours\ 

\ per Year 7_v per Container J 

(Annual Utilization) 

This is given in Table 6-48 for one-way and two-way container 
traffic . 

TABLE 6-48. No-Ferry Number of Vehicles to Satisfy 100% of the Congested Port Container Market 


HIA SPCEO (MW) 

2S 

00 

HIA GONTAIHEfU 



ONE MAY TRAFFIC 

1 

3 

1 

3 

PEN ROUND TRIP 



TWO WAY TRAFFIC 


2 

6 

2 

6 

ROUND TRIP DISTANCE 


2 

4 

0 

2 

4 

1 

2 

4 

i 

2 

4 

0 

OPCRATINC TIME 



ONEWAY 

1.1 

14.1 

11.4 

0.0 

14.1 

19.4 

T 

9 

11 

7 

• 

11 

PER rtO 



TWO WAV 

14.1 

10.1 

244 

14.1 

III 

244 

12 

14 

11 

17 

14 

11 






i.oot 

M 

10 

100 

19 

21 

37 

39 

50 

•1 

14 

11 

22 


ONE WAT 


37S.DM 


i,m 

27 

40 

13 

10 

14 

II 

70 

25 

10 

7 

9 

11 




ANNUAL 

1,DOO 

IS 

142 

Ilf 

33 

10 

•2 

00 

09 

IM 

25 


31 




CONTAINERS 

S7S.M0 




















2,MD 

41 

71 

•4 

10 

21 

31 

35 

45 

14 

12 

10 

20 

Nu 


PER 
















''nf 


m.9M 


I.DOO 

47 

n 

77 

19 

» 

25 

39 

45 

11 

13 

II 

17 


YEAR 





(HOURS) 

2.000 

24 

11 

39 

1 

11 

13 

29 

23 

25 

7 

1 

9 - 


TTWO WAV 






















1.000 

I) 

no 

137 

27 

30 

4S 

70 

02 

04 

25 

29 

13 




in.m 


tooo 

42 

SI 

01 

14 

11 

22 

35 

41 

41 

13 

15 

11 


Note that the one-way analysis also applies to Application 2, 
"Without Competition," described in 6.13.2.2. 






6-139 



6.13.3.4 **No-Ferry" Share of the Market , From the case 

study, the threshold costs for the two applications are as follows: 

Application 1: One-way traffic, 

$137 to $150 per container. 

Two-way traffic, 

$134 to $137 per container. 

Application 2: | ^7 + 15000 ( |) + 1875 (t^-t^j^) 

this is given in Table 6-49, for ^ 
values given in Table 6-50. ^ 

TABLE 6-49. Threshold Cost for Application 2 ($ per container) 


— — 

HLA SPEED <MPH) 

25 

60 

HLA PAYLOAD ITONS) 

25 

75 

25 

75 

RD. TRIP DISTANCE (MILES) 

2 

a 

6 

2 

4 

6 

2 

D 

6 

2 

a 

6 

I HLA ROUND TRIP TIME 














PER CONTA 

INER (HOURS) 


.163 

.243 

.323 

.054 

081 

.107 

.117 

.150 

.183 

039 

.050 

061 



.0033 

.33* 

4S0 

300 

150 

655 

(K)4 

555 

636 

475 

413 

683 

662 

641 




.23“* 

253 


47 

458 

407 

358 

340 

278 

216 

486 

465 

445 

ONEWAY 


.0066 

.33 

500 

350 

200 

705 

654 

605 

586 

525 

463 

733 

712 

691 

traffic 

(n) 


.23 

303 

221 

3 

508 

457 

408 

390 

328 

266 

536 

515 

; 495 



.010 

33 

550 

400 

250 

1 

755 

1 

704 

655 

63G 

575 

513 

703 

762 

741 




23 

353 

271 

53 

558 

507 

1 

458 

440 

378 

316 

566 

565 

545 


• LANDING CRAFT ROUND TRIP TIME (HOURS) 
*• TUG/BARGH round trip time (HOURS) 


TABLE 6-50. IrvPort Delay per Container (Days) 



6-140 






































The average HLA costs are given in Table 6^51. 

TABLE 6-51. Average HLA Job Costs per Container {$) 


HLA SPEED (MPH) 

25 

60 

ROUND TRIP DISTANCE (MILES) 

2 

4 

6 

2 

4 

6 

AVERAGE 
HLA COST PER 
CONTAINER ($) 

PAYLOAD 

(TONS) 

& 

CONTAINERS 

(EACH 

WAY) 

25 

& 

1 

ONE 

WAY 

250 

360 

480 

170 

230 

270 

TWO 

WAY 

190 

250 

300 

150 

180 

200 

75 

& 

3 

ONE 

WAY 

190 

280 

370 

130 

170 

210 

TWO 

WAY 

140 

190 

230 

120 

140 

150 


The market share parameters are A=20, B=50. 




HLAC 

TC 


>0.80 


= 100 %, 


HLAC 

TC 


^0.50 


Thus for 


From this, by inspection, the market for Application 1 is zero, 
and the market for the 7 5- ton HLA is 100 percent. The market for 
the 25-ton HLA at 25 mph only exists at the shortest distances in 
competition against the more expensive conventional alternative, 
while at 60 mph it exists at all distances, but again in competi- 
tion against the more expensive alternatives. Thus the vehicle 
numbers in Table 6-48 apply, except for the entries under 4 miles 
and 6 miles for the 25 mph, 2 5- ton HLA; these become zero. 

\ 

6.13.3.5 Effect of Ferry . By inspection of the ferry ratio 
curves in Section 6.3.4, and the threshold cost data in Table 6-49 
the effect of ferry is to reduce the number of vehicles somewhat 
for virtually all combinations of parameters, except possibly 
short-range operation of a 60 mph 75-ton HLA with 2000 hours 
annual utilization. 


6-141 




6.14 Case Study No. 11 

Parametric Analysis of Transportation and Rigging of 
Heavy and Outsized Loads by Various Modes 

6.14.1 Current Situation 

In the following pages, a number of transportation and rigging 
jobs involving outsized and heavy components are described. This 
case study is divided into four sections: 

Heavy lift shipments originating in Europe 

. Heavy lift shipments originating in the United States 

Parametric models of heavy lift transportation freight 

rates 

Complex transportation and rigging situations. 

The first two sections describe the transportation and rigging 
of heavy lift shipments where no major complexity like limited 
clearances, bridge reinforcements, etc- were introduced. These 
sections are followed by a description of parametric heavy lift 
freight rate calculator models for rail, barge, and truck trans- 
portation developed by Lykes Bros. Steamship Company. Finally, 
several cases which presented major challenges to the expertise and 
ingenuity of both hauler/rigger and shipper/ consignee are pre- 
sented . 

6.14.1.1 Heavy Lift Shipments Originating in Europe . The follow- 
ing applications describe transportation of shipments originating 
in Europe by modal or intermodal transportation: 


(1) Application 1: Electric Generators and Stators 

A major manufacturer of electric generators and stators 
located in Switzerland is shipping his components worldwide either 
via the ports of Hamburg or Rotterdam. This manufacturer has 
estimated that transportation costs accounts for approximately 8 to 
10 percent of the cost of his components and in exceptional cases 
the transportation may account for as much as 10 to 20 percent. A 
stator for an electric generating plant costs approximately 10 to 
12 million Swiss Francs (U.S. $5-6 million). 

In one specific case, this manufacturer had one 193-ton 
cylinder to be shipped to Ohio, USA. For this movement a 16-axle 
each with 8-wheels truck with a capacity of 410 tons was used to 
transport the cylinder from Birrfeld to Basel am Rhein. This 


I 


6-142 


0R^G‘!^iAL PAGE I- 
OF POOR QUALITY 





move took a total of 6 days, of which 1 day was required to load, 
one day to secure the load and four days for the transport. Total 
cost was S. FR 60,000 (U.S. $30,000). At Basel, the load was 
transferred to a Lykes Seabee barge for transport to Rotterdam for 
loading onto a Seabee vessel for transportation to New Orleans. 

The transshipment cost in Basel am Rhein was S.FR. 20,000 ($10,000) 
and the transportation cost from Basel to New Orleans $42,000. 

Once in the United States, the shipment had to be transported 
further by barge to Ohio^ Costs are not available for the United 
States land-based portion of the transportation. 


(2) Application 2: Air Separation Plants for Steel Manufacture 

A manufacturer near Munich, W. Germany, had two com- 
ponents each weighing 86 tons to be shipped to an export port, 
either to Bremen or Rotterdam. The alternative, shipping the 
components by barge via Nuremberg, was excluded, due to a lack of 
heavy lift cranes at Nuremberg. It was therefore decided to ship 
these components on special transporter trucks from the plant to 
the Port of Bremen. A rigger/transporter quoted a price of D.M. 
25,000 (U.S. $12,000) for each component. Each component took 
three to four hours to load onto the transporter truck, and another 
four to five days to transport between Salchen and Bremen. 


(3) Application 3: Package Boiler 

“\ A company in Hartlepool, England is constructing pressure 

vessels, package boilers and compressors ranging in weight from 100 
to 380 tons. All thase components have to be shipped fully assem- 
bled, and truck transportation is the only alternative available. 
Overseas shipments are normally shipped via the Port of Middles- 
bxough, where a 400-ton floating crane is available for transfer to 
ocean vessels. 

\ 

/’ A 200-ton package boiler was shipped, from Hartlepool to 

Dammam, Saudi Arabia. It was loaded onto a truck trailer for 
transportation to Middlesbrough, where it was driven directly 
, onboard a Ro/Ro vessel. Once onboard the vessel the boiler was 

jacked off the trailer and onto bearers sitting on the deck of the 
vessel. The trailer was an 800-ton capacity multi— axle trailer. 

..c,- It took one day to load at the factory and one-half day transit 
time to the port. The total cost of the overland transport was 
£8000 (U.S. $14,500). The cost of ship transportation to Dammam 
was not available. 


6-143 


(4) Application 4; Transformers and Generators 

A manufacturer of transformers up to 400 tons and 
generators up to 900 tons with plants in Weiz and Vienna, Austria 
has two alternatives to ship its components to continental sea- 
ports. The company can ship by barge to Black Sea ports which 
costs $35,000 per shipment or by rail to Western European ports 
which cost $50,000. The latter alternative is used in most 
cases. 


(5) Application 5: Transformers 

A major manufacturer of transformers located in Hollin- 
wood, Lancashire, England is shipping its components worldwide. 
Most of the shipments are made by trucks over the road to the 
Port of Manchester although at times barges are used. 

One specific case described by the manufacturers in- 
volved the logistics of shipping two 290-ton transformers with 
dimensions of 28 feet x 12.5 feet x 15 feet from its plant to a 
nuclear electric generating station located on Lake Erie, Canada. 
These two transformers were shipped between Hartlespool and Man- 
chester by truck and rolled onto a Ro/Ro vessel. The cost of 
transportation in England was £10,000 (U.S. $18,700). (1973) 

In Canada, the shipments were transferred to railcars 
at Norfolk for transportation to the site. Rail cost was 
£50,000 (1973) (U.S. $93,500). 


(6) Application 6: Transformers 

A major Italian transformer manufacturer located in 
Lugano produce transformers weighing from 30 to 400 tons. The 
modes of transportation used are truck and rail. Over the road 
transportation by truck is limited by the Italian local dimension 
limitations, which are maximum 8 m long, maximum 4 m wide and 
maximum 4.7 m high including the truck. 

The manufacturer received a contract for a 160-ton 
transformer for a power plant in the U.S. Pacific Northwest. 

This transformer was transported by a 200-ton low loader from 
Lugano to the Port of Genoa for transfer to an ocean vessel. The 
transformer was loaded at the factory in two hours using a gantry 
crane at the plant. The overland movement took five days. The 
cost of the transportation was 15,000,000 lira (U.S. $15,300). 

In Genoa, the transformer was loaded onto the vessel using two 
floating cranes with 100 and 150-ton capacity respectively. The 
cost of loading was not available. 


6-144 


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I 

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I 

I 

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I 

1 

I 

t 

I 

I 

I 

1 

s 

I 

I 

I 

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I 



(7) Application 7: Inlet Valves 

A manufacturer of hydroelectric turbines and components 
for these turbines plus paper manufacturing machinery located in 
Zurich, Switzerland ships its components to all parts of the 
world via the Port of Rotterdam, the Netherlands. The mode of 
shipment is normally from Zurich to Basel am Rhein by truck and 
then onwards from Basel to Rotterdam by barge. The dimensions of 
the components are ; 

Water turbines, 5.5 to 6 m diameter, 200 tons 
weight 

. Pipe sections, 5 m diameter, 100 tons weight 
Inlet valves, 3.5m diameter, 180 tons weight 

. Paper machinery cylinders, 4.5 m diameter, 40 tons 
weight . 

Due to the large dimensions of their shipments, the 
truck transport between Zurich and Basel cannot use the most 
direct route of 90 km, due to heavy traffic on this route, bridges 
with limited load capacity and tunnels with limited dimensions. 
Instead the truck shipments have to follow a route of 200 km 
length avoiding these limitations. 

One case involved the shipment of four inlet valves 
each weighing 150 to 170 tons plus accessory cargoes. For each 
valve, the following logistics plan was followed: 

. Transportation by truck trailer from Zurich to 
Basel. The cost was S.F. 50,000 (U.S. $25,000) 
plus police escort S.F. 12,000 (U.S. $6,000). 

. Loading by heavy lift crane onto barge in Basel. 

The cost of this operation was $10,000. 

Transportation by barge from Basel to Rotterdam. 

The cost was $3,000. 

. Transfer from barge to ship in Rotterdam at a cost 
of $2000. 

The transportation cost for each valve from the plant 
to the ship in Rotterdam was therefore $36,000 or a total of 
$144,000 for the four shipments. 


6-145 



(8) Application 8; Transformer 


A West German manufacturer of electrical generating 
plant components is shipping worldwide from plants located in 
West Berlin and Nuremberg, W. Germany. Shipments are made either 
by barge or rail to continental seaports. The mode of shipment 
and seaport is selected based upon the final country of destina- 
tion. Below the logistics of transporting a 150-ton, 9m long, 

3.2 m wide and 4.4 m high transformer destined for Cabora Bassa, 
Mozambique is described. 

The transformer was destined for a major hydroelectric 
power project sponsored by the government of Mozambique. Ship- 
ments for this project totaled 30,000 tons of which approximately 
6000 tons were heavy lift shipments exceeding 100 tons. 

From the plant in Nuremberg, the transformers were 
shipped by a 24-axle railcar owned by the Federal Railroad of 
Germany. It took 12 men four hours to load the transformer at 
origin, and another four days to transport it to the Port of 
Bremen. The negotiated rate obtained from the railroad was D.M. 
35,000 (U.S. $16,000) . It was loaded onto the vessel using a 
floating crane. The cost of loading is not available. 

The cost of transportation in Mozambique is not avail- 
• The logistics of the operation is nevertheless interesting: 

The transformer was lifted off the ship onto 
wooden supports set up on the dock. 

It was then transferred to a railcar using hydrau- 
lic jacks and transported 600 km by rail. 

The transformer was transferred from the railcar 
to a 2 X 8 axle truck bogie that were interchange- 
able with the rail bogies. This trailer was 
pulled by a 2 X 450 ton tractor. It took 20 men 
one day to transfer the transformer from railcar 
to the truck. Once loaded and secured the ship- 
ment was transported 200 km to its destination. 

This final leg of the journey took eight days to 
complete . 


(9) Application 9: Transformers 

An Italian manufacturer located in Torino, Italy, makes 
ormer s up to 200 tons in weight with dimensions of 9 m long, 
3.5 m wide and 4.5m high, and alternators weighing up to 150 tons 


6-146 



with dimensions of 7 m long and 4 . 5 diameter . The components are 
generally shipped by rail. The case below describes the shipment 
of two transformers of 142 tons each to a power plant in South 
Africa. Both transformers were shipped from Torino to Genoa, 
Italy by rail. The rail cost was L 9.5 million ($14,400) for 
each transformer. The transformers were shipped from Genoa to 
Port Elizabeth, South Africa by ship. 

In Port Elizabeth the transformers were transferred to 
rail for shipment to Hydra City, South Africa, a distance of 1200 
km. From Hydra City, the transformers were transferred to truck 
and transported to the Hydra power station. The total cost for 
the rail and truck transportation plus the transfer was L 35 
million ($53,200). 


(10) Application 10: Refinery Reactor Vessel 

The components for a major refinery in Sweden were 
ordered from a manufacturing company in Italy. These components 
were transported by truck to the Port of Venice for loading onto 
specialized heavy lift vessels for transportation to the Port of 
Lysekil in Sweden. From the port the components were loaded onto 
transporters for transportation to the refinery. A total of 15 
or 20 voyages were required to transport all components between 
Italy and Sweden. The logistics and cost of transporting a 
reactor vessel of 220 tons are described below. 

The reactor vessel was transported from the manufac- 
turing plant to the Port of Venice, Italy by truck low loader. 
Several bridges had to be crossed which required careful maneu- 
vering by the trucker. No strengthening of the bridges had to be 
performed. The 10-mile haul to the port required 48 hours. The 
ship was not scheduled to arrive for another four weeks and the 
reactor vessel had to be placed in storage. Once the ship was 
docked, the reactor vessel was moved 25 meters (82 feet) from the 
storage shed to the shipside with rollers moving on rails. The 
cost of inland transportation, the storage and the haul to the 
ship's side cost S. Kr . 60,000 (O.S. $13,000). The charter cost 
of the heavy lift vessel for the transportation between Italy and 
Sweden was S.Kr. 160,000 (U.S. $36,000). 

6.14.1.2 Heavy Lift Shipments Originating in or Transported 
Within the United States . The cases described in the following 
pages involve shipments of heavy or outsized components by one or 
more modes of transportation. 


6-147 



(1) Application 1: Reactor Vessels for Refinery 

Two reactor vessels of 200 tons, 59-foot length and 13 
feet, 2 inches diameter each were manufactured in Japan and 
shipped to New Orleans for the account of a U.S. -based construc- 
tion and engineering company. Once in the United States, the 
vessels were transported less than 100 miles by rail. The cost 
of the rail transportation for each vessel was $6000 plus $4000 
to tie the vessels to the railcar. 


(2) Application 2: Cryogenic Heat Exchangers 

Two cryogenic heat exchangers of approximately 200 tons 
in weight with a length of 160 feet and 14 feet diameter were 
required to be moved from a plant in Wilkes Barre, Pennsylvania 
to Das Island in the United Arab Emirates. A total of 500 tons 
of spares and ancillary equipment followed the shipments. 

The equipment was moved from Wilkes Barre to Jersey 
City, N.J. on a total of 10 railcars. Multiaxle, low bay cars 
were used. The total rail transportation cost was $150,000 for 
all the components. 

Jersey City the components were loaded onto a spec- 
ialized heavy lift vessel for transportation to the Persian Gulf. 
Cost of ocean transportation was $526,000. 

In the Persian Gulf, the cargoes were unloaded at 
Anchorage onto barges and transported by barge 100 miles to Das 
Island. At Das Island, the cargoes were unloaded with crawler 
cranes which were borrowed in an arrangement with an oil company 
with operations on the island. With the assistance of the barge 
crew, contractors and local labor, the unloading was accomplished 
in two days. Costs that may have been incurred in the Persian 
Gulf are not available. 


(3) Application 3; Ammonia Converters 

A major engineering company had contracted with a 
Japanese manufacturer to supply two 620— ton ammonia converters. 
Each converter was shipped from Japan to New Orleans at 60-day 
intervals. Final destination was Minititlan, Mexico. 

A rigging company took responsibility for each converter 
in New Orleans. In New Orleans, the converter was transferred 
from the ship to a flat deck Ro/Ro barge using a large floating 


6-148 


GRiGsWAL page is 

OF POOR QUALITY 



crane. The barge transported the converter to a shallow water 
river discharge point in Mexico. At this point the converter was 
transferred to two 400-ton low profile crawlers positioned on the 
deck, "walked" off the barge and transported 8 miles inland to 
the site. The cost for the total job from New Orleans to the 
construction site was $66,000 for each converter. 


(4) Application 4: Petroleum Storage Vessels 

A manufacturer of petroleum and petrochemical plant 
components shipped four 234-ton pressure vessels destined for a 
production platform in the United States gulf 100 miles offshore 
Louisiana. These vessels were loaded onto railcars in Paola, 
Kansas using one 150-ton crane and one 200— ton rubber tired crane 
in tandem. It took a team of 15 men (6 teamsters and 9 boiler- 
makers) one full 8-hour day to load each vessel. The vessels 
were transported by rail to Houston, Texas. Rail transportation 
cost for each of the four vessels was $15,000 for a $60,000 total 
cost . 


In Houston, the tanks were transferred to a deck barge 
equipped with 500-ton derrick, and transported to the offshore 
site. No costs are available on this portion of the move. 


(5) Application 5: Heavy Lift Crane 

A truck crane weighing 150 tons was shipped from 
Lorrain, Ohio to Philadelphia by rail. The crane was driven on 
the railcar, driven off the railcar in Philadelphia onto a Ro/Ro 
vessel for shipment to its final destination in the Persian Gulf. 
The rail transportation cost was $3 per cwt or $9000 total. 


(6) Application 6: Metal Stamping Machinery 

A metal stamping machine of 200 tons with dimensions of 
25 feet length, 17 feet width and 17 feet height was shipped from 
Chicago to New York by rail. The cost of rail transportation was 
$13,000. 


In New York the cargo was transferred to an ocean vessel 
for further transportation to Khomamshar, Iran. In Khomamshar 
the machine was transported by truck transporter 1000 km to the 
job site. The cost of truck transportation was DM 235,000 
(U.S. $113,000). 


6-149 



(7) Application 7: Truck Crane 

The truck crane was dismantled for shipment by rail and 
the largest component weighed 60 tons. Total weight was 350 
tons. The cost of shipping these components from Lima, Ohio to 
Baltimore was $11,000. 


(8) Application 8: Stators, Generators, and Rotors 

A company was shipping stators/generators weighing 412 
tons each with dimensions of 51 feet, 8 inches length, 21 feet, 
five inches width and 17 feet, 5 inches height, in addition to 
rotors of 67 feet length, 9 feet, 7 inches width and 10 feet 
height and a weight of 242 tons. These components were shipped 
from Schenectady, New York to ports in New Jersey by rail. The 
cost per component was $10,000. 


(9) Application 9: Transformers 

A company was shipping a 300-ton transformer from 
Chicago to Morris, Illinois by rail, a distance of approximately 
70 miles. The cost was $4500 per shipment. 


(10) Application 10: Components for Nuclear Power Generating 

Plant 

The following components were transported from a barge 
landing on the Ohio River to the Dusqueue Light, Beaver Valley #1 
generating plant: 

. Neutron shield tank, 180-200 tons 

. Steam generators, 350 tons 

Total cost for the land transport with a crawler was 

$40,000. 

6.14.1.3 Parametric Models of Heavy Lift Transportation Freight 
Rates . All of the above cases were derived from an extensive 
survey made by Lykes Bros. Steamship Company under contract to the 
Maritime Administration. 

Based on the above cases and an extensive analysis of the 
tariffs published by regulated carriers and rates quoted by unreg- 
ulated carriers, Lykes Bros, developed parametric heavy lift rate 
calculator models for rail, barge, and truck in the United States. 
These models are presented below. 


6-150 



(1) Rail, Freight Rate Calculator Model 

The rate calculator model for U.S. rail freight rates 
is presented as Table 6-52. The model has been developed based 
on the rates for the following commodities: 

. Machinery : Electrical generation equipment, gas 

turbines, metalworking machinery, construction 
machinery, material handling equipment, mining 
machinery, compressors, engines, dredges, boats 

. Class 40 : Reactor and petroleum refining vessels, 

boilers, transformers 

. Commodity ; Locomotives, earthmoving vehicles, 
road building equipment, mobile cranes, drill 
rigs. 

The calculation of heavy lift freight rates are based 
on four components : 

. The base distance rate 

. Railcar use charges, including demurrage 

. Special train service charges 

. Extra car charges . 

The base distance rate is the charge quoted in the 
tariff and is based upon the weight of the cargo, the type of 
commodity, the distance and origin and destinations of the cargo. 
The origins and destinations are important because railroads like 
other businesses price their services according to the competi- 
tion for the cargoes. The Lykes study has characterized the 
rates by four different origins or destinations as follows: 

. Origin or destination is a deepwater port. At 
these points low cost alternatives by barge and 
ship are available, and rates are consequently 
low . 

. Origin or destination is on a navigable river and 
low cost alternative transportation by barge is 
available. The rates are therefore relatively 
low. 

. Origin or destination is close to a navigable 
river and cargoes can be transshipped to barge 
after a short haul by overland modes of trans- 
portation. The rates are higher than the two 
alternatives above, but still low enough to 
discourage shippers from transhipment to barges. 


6-151 



TABLE 6-52. U.S. Railroad Heavy Lift Movement Costs 


BASE CHARGE 


(Sum of fixed cost 

per ton plus fixed cost per ton-mile) 


Commodity 

(B) 

(C) 

or 

(D) = $5 /tonne 


Rate 

(A) 



= $0 

Rate X Weight = 






Setup Cost = $ 

Class 40 Rate 1 

(B) 

(C) 

or 

(D) = $24/tonne 


Machy Rate J 

(A) 



= $1 9/tonne 


Commodity 

A, B 


@ 

3.4C/tonne-statute mile 

Rate X Distance x Weight 

Rate 

C 



3.8*f/t-s.m. 

Distance _ ^ 


D 



4.35</t— s.m. 

Cost 

Machy 

B 



6.0d/t— m. 


Machy \ 

A Only 


5.6c/t-m. 


Class 40 J 

A.B 





Class 40 

C 


@ 

6.4(1:/ ■ m. 


Machy \ 

D 



7.3c/t— m. 


Class 40 / 






TOTAL BASE CHARGE 




$ 

RAILCAR USE CHARGE 





(2 free days load & 2 for discharge) 




$6.70 per metric ton = 
7%c/stat. mile 


Demurrage <over 2 days) 

1st & 2nd @ $ 59 ea. 
3rd & 4th @ 118ea. 

5th & 6th @ 177ea. 

7th & 8th @ 236 ea. 


Loading Emptying 


Total Demurrage 

TOTAL RAILCAR USE CHARGE 


$ 

$ 


S 


s 


SPECIAL TRAIN SERVICE CHARGE 

(for height add 2' for railcar to height of load) 

If height ■♦'2'QR width greater than table, on map; 


S.T.S. Charge = $18/mile 

Southern 


19/mile 

Western 

(Minimum $1 18) 

20/mile 

Eastern 



EXTRA CAR CHARGE 

(split load or length) (add demurrage above) 

Total number cars @ 607car = (4 maximum) 

Weight charge @ $73/extra car (not 1st car) 

Distance charge @ 759/mile/e)ara car (not 1st car) 

TOTAL EXTRA CAR CHARGE 

TOTAL RAILROAD BILL 


$ 


$ 

S 


I 


6-152 



. Origin or destination is such that rail will be 

the only alternative except for truck. The rates 
are therefore relatively high. 

The rail use charge refers to the cost of using the 
cars. The charges vary greatly depending upon the type and size 
of car. The charges presented in the model is an average cost 
based on the costs of a number of railroad-owned cars. 

In cases where the dimensions of the cargo to be trans- 
ported exceeds the clearances on the route, special trains often 
have to set up to transport the cargoes. A generalization of the 
clearances in the United States is presented as Figure 6- 9 . The 
height clearance includes the car bed height. To estimate the 
height clearance of a cargo loaded on a depressed center flatcar 
approximately 2 feet has to be added to the height of the cargo. 

When the length of the cargo exceeds 60 feet and 
cannot fit on one flatcar, one or more extra cars are frequently 
required at either end of the load or in the middle. As many as 
four extra cars may be required. 


(2) Barge Freight Rate Calculator Model 

The barge freight rate calculator model is presented as 
Table 6-53. A graphical description is presented as Figure 6-10 . 
The barge freight rates are normally calculated based on the 
distance traveled plus the weight of the cargo subject to a 
minimum weight. Tne rates will differ depending upon the water- 
ways on which the cargo is to be carried. The rates are lower on 
the main waterways than on the tributary rivers due to the fact 
that larger tows are possible on the main waterways. 

Two different rates are presented: 

. Transportation in carrier-owned barges 

. Transportation in shipper-owned barges. 

When the cargo is transported in a barge owned by a 
barge line, the freight charge covers both the towing charges and 
the rental of the barge. In the case that the shipper owns 
barges, he will only have to pay the towage charges. Both these 
rates are included in the model. 

The European barge costs are higher than those charged 
by companies operating on the U.S. waterways. Charges on various 
European waterways are presented as Figure 6-lL The charges pre- 
sented in this figure include only the towage charges. A good 


6-153 




WIDTH 

120 ' 

12*10" 

SHIPPING AREAS 

AREA 

HEIGHT (maximum) 

1 


- 

New England 

2 


19*0" 

Upper Northwest & Southeast 

3 

19'3" 

19'3" 

Lower Northwest & Southeast 

4 

20'4" 

20'4" 

Mississippi Valley & Southwest 


SOURCE: Combustion Engineering 

FIGURE 6-9 Generalization of Clearances in the United States 


I 


0R1G=)S3AL PAGE ; 
OF POOR QUALITV 


I 


6-154 



















TABLE 6-53. U.S. River Barge Cost 


Barge Size 

SeaBee Units of 2 @ 97' x 35' 


Minimum Weight 
Carriage Towing 

800' ST. in 1 or 2 barges 


J = 200' X 35' or less 
SJ= 200'~240'x 35' -45’ 
S = 240' X 45' or more 


600 ST. 1200 ST. 

1000 ST. 1800 ST. 

1200 S.T. 2400 ST. 


CARGO WEIGHT /MINIMUM USE 

TOWAGE : CARRIAGE 


RIVER ROUTING = 


BASE CARR lAGE/BARGE TOWAGE/BARGE 



DESIGNATORS 

SET UP 

RATE 

SET UP 

RATE 

M 

Main Stream Mississippi and 
Ohio Rivers 

$3,900 + 

$6.80/Mile 

-$800 + 

$6.61 /Mile 

C 

Combination M & One Tributary 
River or Gulf Intracoastal Waterway 

$4,800 + 

$7.35/Mile 

0 

$6.61 /Mile 

T = 

Two Tributary or Gulf l.C.W.W. 
Movements 

$5,900 + 

$8.90/Mile 

+ $700 + 

$6.61 /Mile 


BASE RATE = $ /BARGE = 100% At 1,000 Metric Tonnes 

MULTIPLIER = = % For Barge Size & Heavy Lift Weight 

MULTIPLIER = = % Actual Weight or Minimum -J- 1,000 MT. 

BARGING BILL = $ /BARGE 


EXTRAS FOR CARRIERS BARGES 
DECK 

HL 200S.T. OR J= 150% 

HL 200 S.T. OR SJ = 200% 

HL 200 ST. OR S = 300% 
MINIMUM = $4,184 


HOPPER 

HL 100 200 ST. = 150% 
HL 200 S.T. = 200% 

MINIMUM = $4,184 


EXTRAS FOR TOWING BARGES 
ALL TYPES 

J= 100%; MINIMUM $750 
SJ = 150%; MINIMUM $750 
S = 200%; MINIMUM $1,500 
SEABEE UNIT = $700 Loaded; 

MINIMUM = $600 Empty 
EMPTY = NO CHARGE 


6-155 



UPPER TRIBUTARIES AND GULF INTRA COASTAL WATERWAY 
COMBINATION MAIN RIVER AND TRIBUTARY ROUTE 
LOWER MISSISSIPPI AND OHIO RIVER ONLY y 









ONE WAY BARGE TOWAGE COSTS (DOLLARS) 



FIGURE 6-1 1 European Barge Towing Charges by Navigation Channel 


6-157 




estimate of the total barge costs (i.e., towage and barge charter) 
can be derived by adding the barge costs presented in Table 6-54 
to the towage cost in Figure 6-11. 


(3) Heavy Lift Truck Transport 

A number of variables are used by hauler/riggers to 
calculate transportation charges. Each job is different, and it 
is bid as a total package with loading, unloading, road survey, 
special equipment and other charges included. Based on published 
tariffs and discussions with haulers/riggers, Lykes Bros, de- 
veloped a parametric rate predictor model. This model is pre- 
sented as Table 6-55. 

It should be noted that charges for bypass roads, 
bridge strengthening and reconstruction, expansion of roads, 
construction of barge landings and other charges that are pecul- 
iar to each situation, will be additional to the charges pre- 
sented in the parametric model. 

In the next section, a number of cases which by their 
particular nature fall outside the scope of the parameters of the 
models are presented. 


s 


(4) Complex Transportation and Rigging Situations 

The following application describe the transportation 
and rigging situations which in many ways are unique and require 
experience, expertise, and special equipment in the possession of 
only a few hauling and rigging companies. 


(a) Application 1: Transportation of Nuclear Com- • a 

ponents by Heavy Lift Barges 

The Union Mechling Corp. is one of the major barge 
and towing companies in the United States. This company has also 
invested in barges that can sustain deckloads of up to 1200 tons 
and can thus handle very large and heavy components required for 
among others nuclear power plants. Some typical components that 
the barges of Union Mechling transport for the nuclear power 
plant manufacturers are listed in Table 6-56. 


6-158 





TABLE 6-55. Rate Predictor Model (40 Tonnes) 


BASE CHARGE 

Setup Cost = S 19.25 x weight (metric tonnes) = S 

Transport Cost = SO. 40 x weight x distance (S.M.) = $, 

Total Base Charge = $. 


SIZE EXTRAS (use only the highest multiplier for oversize) 


Length 

Multiplier 

Width 

Multiplier 

Hi. for Ground 

Muliipl ler 

45'-55' 

1.05 

8-9’ 

1.05 

1?-13' 

1.05 

55'-65' 

1.10 

9-10' 

1.10 

13‘-14‘ 

1,10 

65-70' 

1.20 

10'- 1 V 

1.15 

14'- 15' 

115 

70-80' 

1.30 

11 ’-12' 

1.20 

15' 16' 

1.20 

80-100' 

1.40 

12’- 13' 

1 25 

16’17' 

1.25 

100* 

1.50 

13'-14’ 

1.30 

1710' 

1,30 



14-15' 

1.35 

18' 19' 

1.40 



15' 16' 

1.50 

19’ 

1.50 



16' 1 7' 

1.65 





17' 

2.00 




GEOGRAPHY EXTRAS 
Souih of Tennessee 
North East and Midwest 
Mountainous Areas 
South West 


- 1 00 Multiplier Base 

= 1 05 Mui itplier 

= 1. 10 Multiplier 

~ 0.95 Multiplier 


COMMODITY EXTRAS 
Steel Fabrications 
MetalworKing Machinery 
Rotating Mechanical Machinery 
Rotating Electrical Machinery 


1.00 Muliipliei Base 
1.10 Mul iipliei 
1 . 20 Mul iipl ler 
1 .30 Mul iiplier 


TOTAL BASE AND EXTRAS 

S Base charged x largest size Extra Myi tiphei x Geography E x 1 1 a 
Multiplier X Commodiiy Extra Mu tiplier S 


EQUIPMENT EXTRAS 

Two-Way Radios S30/iraclor $ 

Less than 1 00 tonnes Special Trailers 35"-40'“ 1 Oc/Mile ea S 

Less than 100 lonnes Low-Boy Trailers 6"-35 ‘ 154/Mi)e ea S 

ff lennih over 100', or il weiqhi over 150 tonnes, 

ex ira driver and tractor @ S1 2 75/hour loaded. S 

Special heavy lift trailers @ S2 00/tonne/Uay S, 

Return o( tractor and any trailer @ 74c/Mile empty S. 

Over 3 hours, demurrage for trailers S7. 00/hour S, 

Over 3 hours, demurrage for Tractors S 1 3.00/hou S 

(Dunnage lor securing not included.) 


LABOR EXTRAS 15<J/loaded mile 

If over 10 hours, extra driver @ higher or S 

$1 5.00/houi 
664/loaded mile 

M over 1 2' wide, escort car @ higher or S 

(minimum S50) $10.75/hour 

I f over 16’ wide. F lagmen (? S5,50/hour (loaded & empiy I * S 

SERVICE EXTRAS 

If cargo L 55' or W 10' or H 15' above ground Special 
Permits @ $18/state ^ $ 

If calf at marine terminal, charge!® S4.40/MT ^ S. 

If value $5,500 per metric tonne, insurance at 

504 /$! ,000 over * S. 

If height or width 20’. surveying route @ $ 1 70/mile - $. 

(Raising telephone 81 power lines not included) 
total EQUIPMENT. LABOR. ANDSERVICE EXTRAS = S 

TOTAL UNIT TRANSPORT BILL * S 


SOURCE: Lykes Bros. Steamship Company 


GRSGiWAL PAGE ib 
OF POOR QUALITY 



TABLE 6-56. Components that Union Mechling Transport by Barge 



BABCOCK & 
WILCOX 

WESTINGHOUSE 

COMBUSTION 

ENGINEERING 

GENERAL ELECTRIC 
(CHICAGO BRIDGE IRONI 

Reactor pressure vessel 

400 tons 

400 tons 

530 tons ) 

1 100 tons 

Steam generator 

400 

400 

800 I 


Stators 

400 

400 

400 

400 

Transformers 

400 

400 

400 

400 

Closure heads 

100 

100 

100 

100 


At the present time, there are only five heavy 
lift barges with deck load capacities of 1200 tons operating on 
the inland waterways of the United States. This is due to the 
limited and specialized market opportunities for these barges and 
the large capital investment required to construct them. Due to 
these facts, the rates charged by the heavy lift barge operators 
are at a premium compared to conventional barge transportation. 
Some typical rates for a total load of maximum 1200 tons from 
Memphis, Tenn. (the location of several nuclear components 
manufacturers) to various destinations are listed in Table 


TABLE 6-57. Typical Rates for Load of 1200 Tons From Memphis, Tennessee 


DESTINATION 

DISTANCE 

COST 

Port Gibson, Miss. 

200 miles 

S 30,000 

St Francisvilie, La. 

500 miles 

35,000 

(Baton Rouge) 
Salem, N J. 

800 miles 

110,000 

Richmond, Wash. 

6200 miles 

430,000 


6-161 
















The latter is a move via the Panama Canal, and up 
to Astoria, Washington and further up the river. 

The above charges normally include one day free 
time for loading and discharge which is performed by the shippers 
and consignees or by a rigger for the account of the shipper and 
consignee. Beyond this one day free time, demurrage charges of 
$20 per hour for the barge and $120 per hour for the tug is 
assessed for each running hour, day, and night that the barge is 
retained. 


The charter agreement between the barge operator 
and the shipper requires the shipper to provide a "safe harbor 
and berth" for the barge. Most manufacturers have good berths at 
their plants. In many cases, the shipper or consignee is re- 
quired to construct a barge landing or berth to unload the com- 
ponents at the destination. The cost of such barge landings vary 
considerably by the conditions at each site. Typical costs range 
from $100,000 to $500,000 and average $250,000. 


(b) Application 2: Components for Nuclear Power 

Station 

A total of seven components for the North Anna 
Power Station, Units 1 and 2, a nuclear power station of Virginia 
Electric and Power Company at North Anna, Virginia had to be 
offloaded from a barge and transported 65 miles over the road to 
the site. The distribution and numbers of the weights of these 
components were : 

. 3 components each 65 tons 

. 2 components each 300 tons 

2 components each 168 tons. 

Each of these components had to be offloaded at a 
barge dock at Walkerton, Virginia designed and constructed by the 
hauler/rigger, Williams Crane & Rigging Company of Richmond, 
Virginia. Along the 65 mile route Williams had to build a 120 
ft. bridge with a capacity of 600 tons, construct a half mile 
bypass around a railroad bridge and several facilities to be used 
as overnight stopping places. Each component required four days 
to transport with special transporters and a total manpower input 
of 15 men were required. Additional numerous hours were required 
for survey work, construction and loading and unloading. The 
contract cost for this project was $565,000. 


6-162 



(c) Application 3: Components for Nuclear Power 

Station 

This project involved components for the North 
Anna Power Station, Units 3 and 4. A total of four components 
had to be shipped the 65 miles over the route described above. 
The weights of the four components were: 

. 2 components each 344 tons 

. 2 components each 140 tons- 

Each component required’ a workforce of 17 men 
equipped with specialized transporters a total of 3 days to 
transport from the barge unloading to the power plant site. The 
total cost for the hauling job performed by Williams Crane and 
Rigging Company was $438,000. 


(d) Application 4: LNG Deck Houses 

As part of the construction of three LNG tankers 
at the Newport News Shipbuilding and Dry Dock Company, the 
construction of the deckhouses were subcontracted to an outside 
company. These deckhouses were constructed by Carteret Manu- 
facturing Company of Carteret, North Carolina. The dimensions of 
the deckhouses were 135 ft. long, 56 ft. 3 inches wide and 62 
ft. 11 inches high, and each weighed 760 tons. Williams Crane & 
Rigging Company moved these deckhouses from storage, loaded each 
on a barge and arranged for transportation and the unloading at 
Newport News. These deckhouses were transported complete with 
all fixtures and equipment in place. The total job cost was 
$320,000. 


(e) Application 5; Relocation of Deck Crane 

A large crane weighing 660 tons had to be re- 
located one-half mile within the Newport News Shipbuilding & 
Drydock Company yard. This job took 14 days to complete and 
required a workforce of 12 men. The total cost for the job, 
which was performed by Williams Crane and Rigging Company, was 
$93,000. 


(f) Application 6: Nuclear Reactor Vessel 

Transportation in Europe 

A manufacturer of nuclear generating plant com- 
ponents in France has a number of requirements for heavy lift 


6-163 



transportation to European and overseas destinations every year. 
The logistics of moving a 310-ton pressure vessel from Le Creusot 
to Fessenheim is detailed below. The dimensions are 23 m long 
and 4.4 m in diameter. 

At Le Creusot the reactor vessel was loaded onto a 
truck transporter to be moved 35 km to Chalon. This transporter 
had a load capacity of 600 tons, and it took one day to load and 
four days to transport. The cost of transportation to Chalon was 
FF 300,000 (U.S. $66,000). 

At Chalon it was transferred to a barge for further 
transportation to Fos and loading onto ocean vessel. The total 
transfer time was one day and the transit time from Chalon to Fos 
was 14 days. Total cost of the barge transportation was FF 
200,000 ($44,000). 

In the port of Fos, the reactor vessel was again 
transferred to a ship which transported the reactor vessel from 
Fos through Rotterdam and up the Rhine to Ottmarsheim. At 
Ottmarsheim, hydraulic jacks were used to load the cargo onto the 
dock and from the dock to a truck trailer. This truck trailer 
transported the reactor vessel the 10 km to the plant in Fessen- 
heim, where it was unloaded with a 400-ton gantry crane. Total 
transportation cost from Fos to Fessenheim was FF 1,000,000 (U.S. 
$220,000). The total transportation cost was therefore U.S. 
$320,000. It is estimated that the air distance between Le 
Creusot and Fessenheim is approximately 175 miles. 


(g) Application 7: Refinery Vessel 

A refinery component manufacturer is in the pro- 
cess of arranging for the transportation of a 370 ton refinery 
vessel from Minneapolis to a refinery located in Edmonton, 
Alberta. The manufacturer has been informed by the railroads 
serving the area that clearances prevent them from transporting 
the vessel. 


The alternatives currently available to the manu- 
facturer are to establish a plant in Alberta to manufacture the 
vessel or to contract a rigger/hauler to transport it over the 
highways. The first alternative requires major investments which 
the manufacturer is not willing to make at this time. The second 
alternative seems to be the alternative that will be selected. 


6-164 



The total highway distance between Minneapolis and 
Edmonton is 1500 miles and a number of obstacles in the form of 
narrow highways and bridges will have to be bypassed. It has been 
indicated by Williams Crane & Rigging that the total transporta- 
tion job will cost close to $5 million for this one vessel. The 
route survey alone will cost in excess of $50,000. 

6.14.2 Potential HLA Applications 

It is apparent from the above cases the HLA cannot compete 
for the transportation of heavy and/or outsized cargoes in cases 
where sufficient waterway access is provided for ships or barges. 
Similarly, it is apparent that the HLA can only compete with rail 
and over the road transporters or trucks for the transportation of 
heavy and/or outsized components in cases where major obstacles or 
costly complications like strengthening or reconstruction of 
bridges, construction of bypass roads or rail lines, expansion or 
improvement of existing roads or rail lines, or even rearrangement 
of a town through which the load has to pass are necessary. In 
cases when railroads and over the road haulers are faced with such 
costly complicating factors which have to be calculated into the 
job cost, it is possible that an HLA can compete with the rail- 
roads and riggers/haulers. 

6.14.2.1 Application 1: Transportation of Nuclear Components 

From Barge Landing. Nuclear power plants are encountering in- 
creasing regulatory constraints and opposition from environmental- 
ists- For these reasons these plants often have to be located at 
sites away from easy access of existing raillines and waterways. 
The road infrastructure is frequently poor and require upgrading 
or bypasses for riggers/haulers to transport components from 
railheads or barge landings to the site often requiring costly 
upgrading, bypasses and bridge reconstruction to accomplish the 
task. The HLA can therefore possibly compete with conventional 
trailers or transporters to carry loads between railheads or barge 
landings and the construction site. 


(1) Scenario 

The scenario is identical to that described in Section 
u 6 . 14 . 1 . 3 , (4 ) , Applications 2 and 3, above. 


(2) Assumptions 

It is assumed that all required rigging both at the 
origin and the destination will be performed by a rigging company 
or manpower provided by the construction company. The manpower 


6-165 



required for the rigging job and the cost of this manpower is 
assumed to be 17 men for four full days at a cost of $200 per 
manday for each component to be hauled. The total cost for each 
component will therefore be $13,600. In addition, the following 
assumptions are made : 

. All preparations and rigging for transportation of 
the components have been made both at the barge 
and at the construction site. The HLA will there- 
fore experience minimal hovering time while load- 
ing and discharging the load. 

The HLA has received the approval of the nuclear 
regulatory agencies to transport components for 
nuclear power plants. 


(3) Potential Cost Savings with HLA 

No savings beyond those already included in the cost of 
current operations for bridge reconstruction and road upgrading 
are expected. 


(4) HLA Threshold Cost 

The threshold cost in this case will be the cost of the 
current operations minus the manpower cost required for the 
rigging. For units 1 and 2 of North Anna power station current 
cost of hauling 7 components is $565,000, while the cost of haul- 
ing 4 components for units 3 and 4 for the same power station 
complex is $438,000. The total cost for 11 components is there- 
fore $1,003,000. To arrive at the threshold cost, however, we 
have to subtract the cost of the manpower for the rigging opera- 
tion. This cost is estimated to be $13,600 per component or 
$149,600 for all 11 components. The threshold cost is therefore 
$853,400 or an average of $77,600 for each component. 


(5) Potential HLA Operating Scenario 

It is estimated that each component will require a 
total of two hours hovering time at the origin and destination to 
lift and emplace each component. Transportation time for the 
130-mile round trip distance is expected to be 2 to 2.5 hours. 
Each component will therefore require 4 to 4.5 hours of the HLA 
time, in addition to the time required to ferry to and from the 
site. The number of individual trips will depend upon the 
scheduling of the arrival of the components by barge or rail. 


6-166 


I 


ORIGINAL PAGE IS 
OF POOR QL'AUTV 



6.14.2.2 Application 2; Rigging and Short Haul of Very Large 
and Oversized Components . The rigging, hauling, and emplacing of 
very large and heavy components under difficult circumstances is 
time consuming and costly. In such complicated situations it is 
possible that the HLA which can avoid obstructions faced by 
ground based systems, can be competitive. 


(1) Scenario 

The scenario is identical to those described in Section 
6 . 14 . 1 . 3 , (4) , Applications 4 and 5. 

(2) Assumptions 

It is assumed that a total of 11 men will be required 
for four full days to rig each component to be lifted. The cost 
is assumed to be $200 per manday for a total of $8800 for each 
component . 


It is further assumed that all rigging is performed 
prior to the arrival of the HLA so that the hovering time required 
for hook-up and emplacement will be minimal. 

Finally it is assumed that the lifts of the four com- 
ponents, i.e., three deckhouses for LNG carriers each weighing 761 
tons and one CMI Whirley crane, weighing 660 tons are to be per- 
formed at four different time intervals. 


(3) Potential Cost Savings With HLA 

It is expected that no cost savings can be derived from 
the use of the HLA. 


(4) HLA Threshold Cost 

The threshold cost in this case will be the cost of the 
current operation minus the cost of the rigging required prior to 
w the arrival of the HLA. The cost of moving the three deckhouses 

is $320,000 for all three or an average of $107,000 for each. The 
expected rigging cost for each is $8800. The threshold cost for 
each deckhouse will therefore be $98,200. 

The current cost of moving the crane is $93,000. The 
rigging cost for this crane is also estimated to be $8800. The 
HLA threshold cost for the crane is therefore $84,200. 


6-167 



(5) Potential HLA Operating Scenario 

The distance between the hook-up and emplacement is 
minimal and the time required for hauling is expected to be 
small. The total time required for the HLA to lift each component 
is two hours. In addition ferry time to and from the site between 
the lifting of each component will be required. 

6.14.2.3 Application 3: Hauling of Components That Require Long 

Deviations by Conventional Means of Transportation . In some cases 
heavy and outsized cargoes have to be transported over long and 
circuitous routes with several transshipments because of limitations 
on the transportation infrastructure or the modes of transporta- 
tion serving the area. The cost of such circuitous transportation 
can be substantial. It is possible that an HLA which can bypass 
the obstructions facing overland modes and can transport cargoes 
on a direct air route, could be competitive in these situations. 

One such situation is presented with the logistics problem of 
transporting a 310-ton nuclear reactor vessel from Le Creusot to 
Fessenheim near the Swiss/German border in France. 


(1) Scenario 

The scenario is identical to that described in Section 
6 . 14 . 1 . 3 , (4 ) , Application 6. 


(2) Assumptions 

Although this case describes the transportation of a 
nuclear component in France, it is assumed that the cost of 
French labor and the manpower requirements to perform the rigging 
will be similar to that experienced in the United States. All 
assumptions for this case will therefore be identical to those 
outlined in application 1: Transportation of nuclear components 

from barge landing. 


(3) Potential Cost Savings with HLA 

The primary cost saving that can potentially be obtained 
with the HLA results from reducing the time in transit of the 
component from more than three weeks to a few days. The cost of 
the component and the terms of its contract with respect to 
payment are not known. For these reasons no attempt has been made 
to calculate the financial cost savings to the project by enabling 
a shortening of the time in transit. 


6-168 


I 



(4) HLA Threshold Cost 


The total cost of existing inodes of transportation was 
$320,000 delivered at the destination. The total cost of the 
manpower required to rig the nuclear reactor vessel both at the 
origin and destination is estimated at $13,800. The HLA threshold 
cost is therefore $306,200. 


(5) Potential Operating Scenario of an HLA 

The total hovering time required at the origin and 
destination is estimated to be 2 hours. The total air route 
distance between Le Creusot and Fessenheim is approximately 175 
miles. The round trip transportation time for the HLA should be 
4 hours and 22 minutes at an average cruising speed of 80 miles 
per hour, while at 40 mph, it should take 8 hours and 44 minutes. 

6.14.2.4 Application 4: Transportation of Large Components 
Over Long Distances . In situations where neither rail nor barge 
transportation is available to transport large and outsize com- 
ponents over long distances, and where the overland route by truck 
is faced with major obstacles the HLA may present an alternate 
solution. One such situation is presented with the case of 
transporting a 370-ton refinery vessel from Minneapolis to 
Edmonton, Alberta, Canada. 


(1) Scenario 

The scenario is identical to that described in Section 
6 . 14 . 1. 3 , (4) , Application 7. 


(2) Assumptions 

It is assumed that it will require a crew of 12 men for 
the rigging to prepare for the HLA and to rig for the erection at 
the site. The crew will consist of: 

. 10 ironworkers 

1 crane/rig operator 
1 oiler. 

The average cost per man is $200 per day. The total job 
will require four full days of rigging at a total cost of $9600. 


6-169 


ORIGINAL PAGE tS. 
OF POOR QUAL8TY 


All work will be scheduled so that the HLA can pick up 
and erect the refinery reactor vessel without delay or waiting 
time at origin and destination. 

It is finally assumed that refueling can be performed at 
regular intervals on the journey without major route deviations 
and delays. 


(3) Potential Cost Savings with HLA 

The major potential cost saving that can be achieved 
with the HLA is the reduction in transit time. This transit time 
saving may involve a substantial financial saving to the project. 
No attempt has been made to quantify these savings, since no cost 
data for the refinery vessel is available. 


(4) HLA Threshold Cost 

The cost of transporting the vessel on transporters over 
the road including costs of bridge strengthening, road improvements, 
permits, etc. has been estimated at $5 million. The rigging cost 
with the HLA will be $9800. The HLA threshold cost will therefore 
be slightly below the $5 million estimated cost of over the road 
transportation by truck transporter. 


(5) Potential Operating Scenario with HLA 

It is estimated that the hovering required at the origin 
for hook-up and at the destination for erection will not exceed 2 
hours. In addition, the HLA will carry the load for 1500 miles 
and possibly have to deadhead back 1500 miles to the origin unless 
it will be possible to cluster other jobs close by the destination. 

6.14.3 Estimate of HLA Needed to Satisfy the Potential Market 

This estimate is divided among a variety of different trans- 
portation and rigging tasks (in addition to those already covered 
in the electric power generation, strip mining and refinery case 
studies). Two payload sizes, 500 ton and 800 ton, are selected to 
encompass the range of transport and rigging alternatives. 


6-170 



6.14.3.1 The Annual Market . From Section 5, the annual market is 
summarized as 900 to 1800 heavy lifts per year. This market is 
assumed to be divided equally among the 17 lifts in the 4 applica- 
tions described in 6.14.2, involving payloads from 65 tons to 761 
tons . 

6.14.3.2 The Required HLA Capabilities . Typical operating times 
for the four applications are as shown in Table 6-58. 


TABLE 6-58. Typical Operating Times for Transportation Applications 


APPLICATION 

NO. OF 
LIFTS 

PAYLOAD 

(TONS) 

AV. HLA SPEED (MPH) 


2S 



60 




soc 

TOTAL transport distance (ELEVEN ROUND TRIPS) (MILLS) 

3S0 

500 

760 

250 

500 

750 

1 

■i 

OPERATING TIME MNCL. 2 HRS HOVER PER HOUND TRIP) (HOURS) 

24 

34 

44 

182 



2 


doo 

HOVER TIME (FOUR ROUND TRIPS) (HOURS) 

8 


6 





total TRANSPORT DISTANCE (MILES! 

90 

180 

270 

90 

180 

270 

S 

B 

SCO 

OPERATING TIME (INCL. 2 HRS HOVER PER ROUND TRIP! (MOtJRSl 

wm 

B 

128 

3.5 

u* 

6 5 




TOTAL TRANSPORT DISTANCE IMiLESi 

750 

1600 

2250 

750 

1500 

2250 

4 

H 

SAG 

OPERATING TIME (INCL. 2 HRS MOVER PER ROUND TRIP) (HOURS) 

32 

62 

92 

14.6 

27 

35.5 


* ThC 1 1 LIFTS OF APPLICATION 1 ARE AGGRECATkO TO 7 LIFTS TO TA>«'E ADVANTAGE Oh THE ASSUMED 500T PAYLOAD CAt'AClTV 


6.14.3.3 "No-Ferry" Number of Vehicles, N„ . The total number 

NF 

of vehicles to satisfy 100 percent of the market in each application 
is given by 

(Annual Lifts) (Operating Hours per Lift) 

(Annual Utilization) 

This is given in Table 6-59 for each payload size. 


6-171 


















































TABLE 6-59. No-Ferry Number of Vehicles to Satisfy 100% of the Transportation Market 



%Of Distance in Previous Table 


6.14.3.4 "No-Ferry" Share of the Market , 1^^,. From the case 
study, the threshold costs for these applications are: 

. Application 1: $853,400 for eleven components 

(seven 500 ton HLA lifts) 

. Application 2: $378,800 for four components 

(four 800 con HLA lifts) 

. Application 3: $306,200 for one component 

(a 500 ton HLA lift) 

. Application 4: $5M for one component 

(a 500 ton HLA lift) 

The average HLA costs for these lifts are given in Table 6-60. 

The mark;et share parameters for this case are A=27.5, B=55. 
This means that for no marJcet capture 

HLA cost ^ 

Threshold cost ^ .725, while for 100% market capture, 

HLA cost ^ , c 1 - 

Threshold cost ^ -45. Thus the market share is as 

given in Table 6-61. 


6-172 




TABLE 6-60. Average HLA Job Costs for T ransportation Applications 


APPLICATtON 

NO. OF 

PAYLOAD 









LIFTS 

(TONS! 

AV. HLA SPEED (MPH) 


25 



60 





TOTAL TRANSPORT TIME (HOURS 


MM 

ira 

4 17 

8 33 

12.5 

1 


fiOO 

TOTAL HOVER TIME (HOURS) 


■■ 

■■ 

14 

14 

14 


mt 


HLA JOB COST ISM) 

52 

73 

.94 

41 

49 

58 

2 

■ 

— 

TOTAL HOVER TIME (HOURS) 

6 

R 



■1 


HLA JOB COST <SM) 

.35 

35 




TOTAL TRANSPORT TIME (HOURS) 

■ 

7 2 


IS 

B 

■ 

3 

1 

500 

TOTAL HOVER TIME (HOURS) 

■ 

2 

B 

2 

■ 

■ 




1 HLA JOB COST (SMI 

u 

.19 

B 

.07 

11 

.14 




1 TOTAL TRANSPORT TIME (HQURSI 




12 5 

25 

37 5 

4 

1 

500 

TOTAL HOVER TIME (HOURS) 



mm\ 

2 

2 

2 





HLA JOB COST (SM) 

.67 

1.29 

1 91 

31 

.56 

82 


TABLE 6-61. "No-Ferry" HLA Share of Transportation Market 


APPLICATION 

PAYLOAD (TONS) 

25 

60 

1 

500 


42 

0 

B 

89 

55 

16 

2 

800 

m^f% 

0 

0 


3 

500 

100 

38 

0 

100 

100 

100 

4 

500 


100 

100 

100 

100 

100 

100 


6-173 











































































6.14.3.5 "No-Ferry" Number of Vehicles to Satisfy the Market 
Share, N . From Tables 6-59 and 6-61, the total number of 
''nf 

vehicles required to satisfy the market share is given in Table 6-62 


TABLE 6-62. "No-Ferry” Number of Vehicles to Satisfy the Market Share 


AVERAGE HLA SPEED {MPH) 

25 

60 



■ 




DISTANCE 









■ 





50 

100 

150 



150 



H 




MIN. 

4 

5 

7 

3 

B 

5 







1000 








APPLICATION 

3 

-f 

PAYLOAD 

600 

UTILIZATION 

MAX, 

7 

10 

13 

5 

B 

10 


4 

(HOURS) 


(HOURS) 

MIN. 

3 

3 

4 

2 

2 

3 








2000 













MAX 

4 

5 

7 

3 

4 

5 



2 


800 



0 


6.14.3.6 Effect of Ferry on the Number of Vehicles . By inspec- 
tion of the operating times, the threshold costs, the ferry costs, 
and the relationship in Section 6.3.3, it is evident that in all 
applications except Application 4, the number of vehicles will be 
somewhat less than the "no-ferry" estimate, while in Application 4 
there would be a slight increase. Thus overall there should be no 
significant change from the results in Table 6-62. 

From the cases just developed, median values of the number 
of HLA required, assuming "no-ferry", are given in Tables 6-63 
and 6-64 for speeds of 25 and 60 mph, respectively, and annual 
utilizations of 1000 to 2000 hours. 


6-174 
















TABLE 6-63. Number of 25 mph HLA That Would Satisfy the Worldwide Heavy Lift Market 



6-175 



TABLE 6-64. Number of 60 mph HLA That Would Satisfy the Worldwide Heavy Lift Market 



6-176 


I 















6.15 Sununary of the Number of HLA Required to 
Satisfy the Worldwide Heavy Lift Market 

6.15.1 T he Effect of Utilization . Note that decreasing annual 
utilization per vehicle brings about an increase in the HLA job 
cost of roughly 40 percent (due to a direct increase in the pro- 
rated annual fixed cost ) , which causes the market share to de- 
crease for those applications in which the threshold cost is too 
close to the HLA job cost. Thus, for these applications, the 
tendency for an increase in HLAs needed as a result of the reduc- 
tion in operating hours per vehicle, is offset by the reduction 
in the HLA share of the market. 

6.15.2 T he Effect of Annual Ferry Time. Where the calculations 
indicated that only a small number of vehicles was involved, the 
effect of ferry time was not calculated because its effect would 
not significantly alter the overall result. 

On the other hand, where the numbers are significant, the 
effect was calculated, as reported in sections 6. 7. 3. 5, 6. 8. 3. 6, 
6.11.3.5, 6.12.3.6, 6.13.3.5, and 6.14.3.6. Study of these results 
and Figures 6-1 and 6-2 shows that the effect of ferry can vary 
widely from application to application, but generally falls be- 
tween 0.5 and 1.5 times the "no-ferry" value, with the greater 
likelihood being for an increase in number of vehicles. 


6-177 


6-178 



REVIEW OF OTHER INFLUENCES ON HLA 
SELECTION 


CHAPTER 7 




7. 


REVIEW OF OTHER INFLUENCES ON HLA SELECTION 


Page 

Number 

7.1 Introduction 7-1 

7.1.1 Operational Requirements Derived 

for Each Application 7-1 

7.1.2 Factors that Enhance HLA Chances 

for Success 7-5 

7.1.3 Institutional Implications 7-8 

7.1.4 Military Compatibility 7-9 

7.1.5 Design Point Changes 7-9 

7.1.6 HLA Entry into Service 7-9 

7.1.7 Discussion of Study Results 7-13 



LIST 


OF TABLES 


Page 

Number 


7-1 Institutional Influences on the HLA 7-10 

7-2 Military Compatibility 7-11 

7-3 Summary of Point Design Changes that 

Might Enhance the Next Generation HLA 7-12 

7-4 An Approach to Entry into Service 7-13 


V 




7. REVIEW OF OTHER INFLUENCES ON HLA SELECTION 


7.1 Introduction 

In the previous sections, operational and cost characteristics 
have been developed to describe the use of HLAs in a wide range of 
potential markets, and to develop estimates of the size and number 
of HLAs that could satisfy each market in the face of current and 
potential competition. 

In this section, the following influences on the desirable 
characteristics of HLA for these markets are discussed: 

. A set of operational requirements for acceptable use of 
any free-flying vehicle 

. Characteristics that can enable the HLA to be more 
profitable 

. Aspects of HLA design that can be chosen to improve its 
profitability in each application 

. Military compatibility with civil market selection 
Point design changes to improve HLA utility 

. An approach to entry into service. 

This section concludes with a summary of pertinent study re- 
sults for each application. 

7.1.1 Operational Requirements Derived for Each Application 

Implicit in the definition of each market application are a 
set of operational requirements that should be satisfied for 
acceptable use of any free- flying vehicle. Briefly, the more 
significant requirements deal with 

. The need to emplace some very large components with con- 
siderable precision, and/or very low relative velocities 
to avoid damage 

. The need for operations at altitude is a second serious 
consideration for some application 

. The need to reach currently inaccessible forests, and 
heavy lift needs in exploring for other resources such 


7-1 


ORlGiMAL PAGE IS 
OF POOR QUALITY 



as gas, oil and minerals, may require occasional HLA 
operations at altitudes up to 12,000 feet 

. The need to maintain high productivity for repetitive 
tasks in particular, and to keep HLA job time to a 
minimum on many tasks, means that the effects of weather, 
terrain, or darkness must be minimized. 

The variation of such operational requirements across the study 
applications are described below with particularly important 
features emphasized: 

Altitude . From sea level to 5,000 feet will satisfy more 
than 80 percent of the logging opportunities in the U.S., 
although some treelines are as high as 7,000 feet in Oregon 
to 12,000 feet in California. This range applies essentially 
to all other applications, with extensions of 6,000 to 7,000 
feet for construction and transportation in industrial areas. 

Temperature . Below freezing (winter logging provides improved 
power plant performance at lower temperatures) to above 120° F 

Elevation Change per Cycle . The most severe case is likely 
to be logging with slopes up to 1:1, probably on the order of 
1:3 to 1:5. The elevation change may be up to 3,000 to 4,000 
feet per turn. 

Wind Conditions . Horizontal and vertical gusts, and steady 
winds up to about 30 mph, occasional horizontal gusts and 
winds up to 70 mph to 100 mph, particularly in coastal and mid 
plains areas. 

Safety Considerations . From applications in logging, tower 
erection, remote drill rig construction, pipeline construction 
strip mining, refining construction and transportation, the 
major safety considerations involve: 

. Static changes in the tagline 

. Load gyrations at lift-off 

. Multiple engine operations 

. Load release system 

. Cable snapback 

. Pilot fatigue 

Ground crew clearance 
. Rotor hp clearance on hills. 

In congested port activities, the following is added 

. Limited room on ship or deck to avoid swinging 
load . 


7-2 



In high rise construction, generator plant construction, 
and offshore oil and gas, add further, 

. Rigging crew safety on top of structures. 

Load Pickup Precision . Applications including logging, 
transmission towers, remote drill rigs, high rise construc- 
tion, pipeline construction, require 

. Control of the pickup assembly to within about 
±5 feet 

. Time for the "hooker" or loader to clear the area 
after hookup. 

In congested port operations, communication between the 
HLA operator and the cargo handlers on the moving ship is 
essential to prevent impact between the cargo and the ship 
structure; special fittings or cable winches may be required 
to provide some guidance and restraint as the cargo is lifted 
from the hatches or decks. This task is simplified if the 
HLA can be held virtually stationary through precision hover 
techniques . 

For operations involving transportation, lifting and 
positioning of very large, very costly components, whose 
inertia and weight are such that even low impact velosities 
can cause unacceptable damage (power plant, ship mining, re- 
finery component, and offshore oil and gas components) , 
continuous control of position to within a very few inches 
may be necessary to prevent development of a swinging load. 

In some cases, it may be important while erecting a large 
component to raise one end slightly and support it off the 
ground with conventional rigging techniques, while the HLA 
raises the other end to the vertical position, so that the 
concentrated ground contact load cannot cause component 
damage . 

Unload/Placement Considerations . For logging, remote drilling 
components, and unloading onto congested port docks, 

. Positioning to within about 5 feet for logs, less 
for fabricated components and cargoes 

. Descent rate not more than about 5 feet per second 

for logs, less for fabricated components and cargoes 

. Altitude hold to within about 5 feet 

. Ground handlers are needed (part of the user’s work 
force) . 


7-3 



For transmission towers, high rise construction, pipe- 
line construction, and transportation of non-damage sensitive 
components 


. Positioning to within about 1 foot 

Altitude hold to within about 1 foot 

. Ground handlers (riggers) will guide the components 
into position, to line up attachments in direct 
coordination with the pilot 

. The final position and altitude accuracy require- 
ments can be eased with the use of guide rail 
attachments . 

For heavy components requiring extreme care and pre- 
cision (power plant, ship mining, refinery, offshore oil and 
gas and others involving damage-sensitive components) 

Positioning to within a few inches to line up 
attachments and minimize possible inertia effects 

. Descent rate accurately controlled at a few inches 
per second to minimize impact damages 

Ultimate control should be by the rigging crew on 
the ground using lines and winches. 

Logistics Considerations . In general, the HLA should be at 
the site when needed, otherwise costly delays can be in- 
curred, reducing the HLAs attractiveness to the user. 

Load Considerations . For situations involving relatively 
small lifts, frequently or regularly repeated (logging, 
congested port containers, remote drilling components, high 
rise construction and pipeline construction) , development of 
load aggregations will permit use of larger HLAs with greater 
fuel economy, less total time spent on the job, and probably 
lower overall job costs. The larger HLA can also be ferried 
longer distances without refueling. 

All heavy lifts present a problem of bulk as well as 
weight and inertia, which adds considerable drag to the basic 
vehicle, and drives the optimum operating speed down from 
that of the clean vehicle to that of the vehicle with external 
or faired payload stowage. 


7-4 



other Environmental Considerations . In most heavy lift 
applications, delays in completing the jobs to the schedule 
required by the user can be very detrimental to the profit- 
ability of the operation. Thus a basic set of operational 
requirements relates to being able to perform better than the 
competition in bad weather conditions, on or over rough ter- 
rain or water, and in bad visibility, day or night. Typical 
difficulties faced by the competition are as follows: 

. Helicopters are very sensitive to temperature- 
altitude variations, icing conditions, gusty 
weather and poor visibility 

Ground transport is heavily affected by rain, snow 
and ice on the ground, and the nature and condition 
of the surface 

Water transport is heavily affected by ice, rough 
water, and winds 

All forms suffer from heavy precipitation of any 
kind . 

7.1.2 Factors that Enhance HLA Chances for Success 


In each application, there are scenarios which favor the 
employment of HLAs, and which result in a greater savings relative 
to its competition, thus increasing its chances for success. 
Similarly, in some applications, where threshold costs and HLA 
cost appear to be close or overlapping, there are clear reasons to 
reduce HLA job cost, through selection of favorable design and 
operational characteristics. 

The scenario features that enhance HLA chances for success 
are peculiar to each application, with some commonality, as out- 
lined below: 

Logging . To enhance HLA success, it is desirable to 

. Compete for jobs normally involving either the 
most costly conventional ground systems, or the 
helicopter 

. Reduce the cost of the ground crew as much as 
possible 

. Compete for jobs where the operating time can be 
minimized (the lowest aggregate yarding distance 
and turnaround time) 


7-5 



. Carry the largest payload per cycle compatible 
with field aggregation capacity 

. Optimize the portion logged by the HLA in each job 

Minimize the time spent in refueling, services and 
resupplying the HLA. 

Port Congestion . Enhanced HLA chances for success result 
from: 

Competition for the most costly container ship 

. Competition against the most costly conventional 
system with the slowest transit speed and turn- 
around time, the smallest number of containers per 
round trip, over the longest ship-to-shore distance. 

Transmission Towers . The HLA chances are already radically 
improved compared to conventional ground-borne systems; suc- 
cess against current helicopters (including the S64 series) 
is assured if the HLA payload permits carrying each tower in 
a single trip. 

Remote Drill Rigs . A significant success potential exists 
from direct substitution, and is enhanced by increasing the 
payload per round trip and the distance per round trip. 

High Rise Construction . In this market there are situations 
where the units to be emplaced are small enough to be handled 
efficiently by current helicopters. However, since lifting 
capacity, rather than speed, is important over the short 
distances involved, the HLA should become successful in the 
right size even though somewhat slower. For crane dismantling, 
an optimum HLA size may be reached from trading off hover 
time per segment with payload size per segment. 

Pipeline Construction . Virtually all opportunities that 
arise in this activity offer assured HLA success against 
either conventional or helicopter operations. 

Power Generation Plant Construction . HLA success depends 
largely on the balance between threshold and job costs, and 
both increase with plant size. This balance can be altered 
to favor the HLA through varying HLA characteristics and 
techniques of employment. For example, reduction of module 
hookup time, and use of fewer, larger modules fully utilizing 
the HLA payload. 


7-6 



strip Mining . Conventional techniques in this case are 
extremely low cost to begin with, offering the best HLA 
opportunities at short transit distances; thus a base sit- 
uated near a strip mining area might be a worthwhile strat- 
egy. 

Refinery Construction . This application is similar to the 
power generation plant case, but the conventional costs are 
lower; thus the HLA has less opportunity to share in the 
market. 

Offshore Oil and Gas Rigs . The greatest chance of HLA suc- 
cess comes from situations where HLA use permits the largest 
reduction in lifting equipment costs. 

General Heavy Lift Transportation . In all except the long 
distance situation, where much roadbuilding cost and time 
was saved by the HLA, generalized opportunities for enhanced 
HLA success are not possible to assess. 

The operational design features of the HLA that enhance its 
chances for success also depend significantly on applications, 
and are outlined below: 

Logging . Design for maximum practical payload, probably 
about 75 tons; design for the most economical combination of 
cruise speed and acceleration to reduce cycle time; design 
for efficient ferry. 

Port Congestion . This is similar to logging except that a 
different size might be optimum. However, 75 tons appears 
to be a very practical choice. 

Transmission Towers . The HLA payload capacity must be suf- 
ficient to carry a complete tower. If not, then its oper- 
ational costs must be less than those of the helicopter, to 
offset the probable higher helicopter productivity. 

Remote Drill Rig . In this application there is some indica- 
tion that maximum productivity is achieved around 50 tons to 
100 tons payload, as increasing payload size and decreasing 
project time offset each other. The HLA may not match the 
helicopter speed, but its payload capacity substantially 
compensates for any lack. 

High Rise Construction . To rapidly take advantage of oppor- 
tunities as they arise, payload size, efficient hover and 
efficient ferry are the most critical considerations. 


7-7 



Pipeline Construction . The characteristics defined in the 
case study analysis appear to be satisfactory. 

Power Generation Plant Construction . Onsite transport and 
placement of structural modules is the only critical activ- 
ity; success depends on reducing hover costs by closely 
matching module size and vehicle capacity. 

Strip Mining . Design for low first costs through simplicity, 
with economy in hover and forward flight. 

Refinery Construction . Design for optimum economy in lifting 
and ferry; this may result through reduced hover time if 
positioning accuracy is achieved. 

Offshore Oil and Gas Rigs . Design for reliable operation in 
windy weather, so as to operate when sea states would prevent 
large operation; design for efficient ferry. 

General Heavy Lift Transportation . Design simplicity, and 
economy in hover and ferry, are necessary features for this 
application, but need less emphasis for the long range trans- 
port opportunity. 

The following non-operational HLA design features can enhance 
HLA chances for success in all applications: 

. Design for austere support facilities 

. Design for minimum fuel cost per hour 

. Reduction of development and production costs 

. Reduction of maintenance requirements per flying hour 

Selection of most favorable financing terms 

. Development of a market position maximizing the production 
quality of any given size, and maximizing the inter- 
changeability of components or subsystems between sizes 

. Marketing to develop the fullest annual utilization for 
each HLA in service. 

7.1.3 Institutional Implications 

Successful operation of HLAs in real life situations requires 
that the interests and concerns of many institutional parties, in 
addition to the user, operator and manufacturer, be recognized in 


OR.'QjWAL 
OF POOR QUALITY 


I 


7-8 



the design and development process. These institutional influ- 
ences are summarized in Table 7-1. 

7.1.4 Military Compatibility 

The potential for military applications exists whenever heavy 
lifts have to take place. There are two general areas of applica- 
tion — peacetime equivalents to the civil applications already dis- 
cussed; and wartime lifts of weapons and equipment over short dis- 
tances as in amphibious operations. A study by Delex* (Reference 11) 
of Navy ship-to-shore container transfer identified and compared 
the characteristics of current or projected surface transfer 
systems; HLA capabilities would compete satisfactorily with any of 
the surface systems as shown in Table 7-2. The Delex study reflects 
tentative requirements defined in a Navy Development Concept Paper 
for Container Offloading and Transfer System (COTS) . The current 
status of these requirements is open to question; they do not, in 
general, appear to present a difficult design problem for HLAs , 
except for the requirement to operate in winds, precipitation, and 
temperatures likely to be experienced in stormy weather. The 
payload size requirements are compatible with several of the 
market candidates reviewed earlier, and provided the HLA can 
achieve an average one-way, two-mile trip time of better than 
seven minutes, it will be competitive with the best current 
capabilities. To do this, an aggregate payload of at least three 
containers appears necessary, driving a Navy HLA to at least 75 
ton payload size. 

7.1.5 Design Point Changes 

The overall marketability of the currently proposed Goodyear 
HLAs could possibly be improved by changes to the design condi- 
tions. A proposed set of such changes is outlined and explained 
in Table 7-3. 

7.1.6 HLA Entry into Service 

A possible approach to introducing the HLA into service is 
outlined in Table 7-4, which would expose the HLAs to as wide a 
range of potential applications as possible, while developing an 
operational data base in the most promising area of application. 
Selection of a demonstration logging locale is desirable near 
other potential applications. Two demonstration vehicles may be 
required, one to acquire an operational data base in logging, 
while the other operates part time in logging applications and 


The Potential of Air Systems in Short Haul, Heavy Lift Applications, 
Delex Control No. D76-6745-I, 19 October 1976. 


7-9 



TABLE 7-1. 


Institutional Influences on the HLA 


IMPLICATIONS OF 

RESTRICTIVE MEASURES 

INSTITUTIONAL INVOLVEMENT 

NON-FED 

FED 

DESIGN CRITERIA 

Application of a body of conser- 
vative design rules 


FAA 

MISSION REQUIREMENTS 

Application of a multitude of 
operational requirements 

• User Industries 

FAA 

CERTIFICATION 

Development, test, and flight 
certification 


FAA 

SAFETY 

Vehicle safety, flight ^ initially 
corridors, Ground J severe 
personnel safety 

• Citizen Groups 

FAA 

NTSB 

OSHA 



ENVIRONMENTAL 

REQUIREMENTS 

Noise, Pollution standards for 
aircraft, applied to HLA 

• Citizen Groups 

• State/Local Govt. 


RATE STRUCTURES 

Regulations to limit monopoly 

• Competitive System 
Operators 

CAB 

ICC 

INSURANCE 

Conservative rates for an un- 
proven technology 

• State/Local Govt 

• Insur. Ind. 


MODAL INTERFACES 

Labor agreements in handling 
cargo 

Non-compatible rate regulations 
and/or interchange agreements 

• Union 

FMC 

FINANCING 

Conservative conditions, capital 
hard to acquire 

• Financial Institutions 

SEC 


7-10 





































TABLE 7-2. Military Compatibility 

• Task: Navy Container Offloading and Transfer 

• HLA Matches These Requirements and is Competitive with 
the Best Current Conventional Systems 

• If 

- HLA Carries Aggregate Payload or at Least 
3 Full Containers 

— Makes an Average one-way, Two-Mile Trip in 
Less Than 7 Minutes 

• A 75T Payload with a Cruise Speed of 25 to 30 MPH will 
Satisfy this Requirement 

• But HLA Must Operate During 

- 30 KT Winds 

- Night, Day, Rain, Sleet, Snow 
28°C to +65°C 

And Must Survive 

- In 75 KT Winds 

— A Hurricane with 24 Hours Warning, Resume 48 Hours 
Later. 


part time in the exploration of nearby additional market applica- 
tions. Logging opportunities in the Pacific Northwest suggests 
the potential of a cooperative development effort on the part of 
the U.S. and Canadian Governments. Intra U.S. Government user 
interest could stem from NASA, the Departments of Defense, State, 
Interior, Transportation, and Commerce, the EPA and several other 
agencies. The alternative to Government sponsorship is, of course, 
the private venture; the responsiveness of the aerospace industry 
typically ensures a much more rapid entry into service. In either 
case the same general program features outlined should be applicable. 


7-11 




TABLE 7-3. Summary of Point Design Changes that 
Might Enhance the Next Generation HLA 



CURRENT 

SUGGESTED 

CHANGE 

REASON 

MAXIMUM 
PAYLOAD - 

75T 

/S.L, STD. Day, \ 
\l00 Ft/Min ROC/ 

75T 

/8000 Ft, Hot day \ 
\(100 Ft/Min ROC)/ 

Logging, Other Lifts, 
in Remote Inland 
Regions 

SPEED - MAX 

60 KTS 

> 75 KTS 

Survival 

(Naval Requirement) 

- CRUISE 

- 

> 50-60 KTS 

Maintain Operation in 
Headwinds 

RANGE - MAX.<W/MAX. P.L) 

> 100 Miles 

- 

- 

PRECISION 
HOVER CAPABILITY- 

Adequate to Perform 
1 Current Helicopter 
Vertical Lift Missions 

Equal to Capability 
Offered by a Heavy Lift 
Crane of Same Capacity 
in Winds up to 30 KTS 

Must Perform as Well 
as a Rigging Crane 
(with Rigging Crew Sup- 
port in Both Cases) 

ALTITUDE - BALLONET 
CEILING 

8200 Feet 

1 

- 

CROSSWINDS - MAX 

30 KTS 

- 

- 

AMBIENT 
TEMPERATURE - 

- 

- 28°C to 65°C 

Military Application 
Requirement 


7-12 




























TABLE 7-4. An Approach to Entry Into Service 


START DATE* 

PHASE 


DEVELOPMENT 

0 

*- Determine Detailed Requirements of Military and 


Civilian Users (G) 

6 to 9 

- Develop Preliminary Design (G) 

12to 15 

- Identify and Develop Long Lead Time High Risk Items (G) 

Approx, 18 

— Initiate Prototype Design and Development (G) 

6 to 9 

— Establish Dialogue between Fabricators and Users (1) 

Approx. 42 

— Test and Evaluate Prototype (G) 

48 to 54 

— Conduct Demonstrations (G and 1) 


PROCUREMENT 

18 

“ Develop Support Specifications (1) 

18 

— Establish Specifications for Production Vehicle ( ) 

Approx. 24 

“ Design {!) 

30 to 33 

- Manufacture (1) 

42 to 45 

- Production Test (1) 

Approx. 33 

- Establish Support Facilities (1) 

46 to 50 

— Deliver Production Vehicles (1) 


* — Months from start of activity; G - Government Activity 

I - Industry Activity 


7.1.7 Discussion of Study Results 

The validity of the approach used depends heavily on the 
accuracy of : 

. The worldwide market assessment 

. The share of each market that might accrue to the HLA 
(in turn depending on the "threshold" job cost and the 
HLA job cost) 

The rate of work achieved by each HLA size in a given 
application. 


ORIGINAL PAGE 
OF POOR QUALITY 

7-13 





The accuracy of the worldwide market assessment varies widely 
from application to application. It reflects in each case: 

, Current experience and trends 

Uncertainties in areas where high growth potential 
exists but where ideology and environment offer restraints. 

The assessment of the share of the market that might accrue to 
the HLA is an area of substantial uncertainty, because: 

. It reflects the varying influence of economic and com- 
petitive forces 

It does not simulate a real life operator's decisions 
with respect to investment in current equipment 

. It assumes all opportunities will be seized, and is 
therefore an over-estimate. 

The HLA threshold cost estimates are uncertain, because: 

. They vary from situation to situation, even though the 
case studies represent the best judgment of major users 
(thus, situations can be sought that enhance the HLA 
competitive ability through increased threshold costs) . 

HLA job cost estimates are, of course, just as critical as 
estimated threshold costs and at this stage of HLA development, 
probably just as uncertain because 

. Variations in potential concepts will vary costs 

. The potential for future refinement and optimization 
will change costs appreciably 

. All the conventional aeronautical cost-reducing ap- 
proaches apply to the HLA as it is developed 

In larger markets, HLA must succeed in direct competi- 
tion on price 

. The influence of basing and consequent ferry can mark- 
edly change the number of vehicles required, and con- 
sequently job cost. 

Given that there is a market and that the HLA has the poten- 
tial to share in it substantially, another very important element 
is the number of HLAs needed to absorb that share in the course 


7-14 


of a year. This in turn is very dependent on the time that has 
to be spent traveling between jobs, which in turn depends on the 
concept adopted for providing permanent or temporary bases for 
HLAs. The subject is one that requires considerable examination 
since it impacts all major influences on potential HLA success, 
in addition to the number of HLAs, i.e., 

. The markets in which HLAs can compete 
The market share they can acquire 

. The annual costs that must be prorated to each job 

. The tradeoff between maintenance philosophy and oper- 
ational costs. 

The influence of varying utilization and vehicle quantities 
are identical to those for any other aeronautical system. Maximum 
production quantities and utilization are the goals to strive 
for. The estimates show that in several cases it is going to be 
difficult to operate a vehicle for the assumed utilization of 
2000 hours. This is true mostly for the very large sizes; except 
for the largest sizes (750T - 900T) there is another application 
for each size that requires more than 2000 hours utilization, so 
that the same vehicle can be put to multiple uses. With respect 
to production quantities, the smaller sizes up through 150 tons 
require production quantities well in excess of the nominal 25 
assumed in the cost analyses. Bigger sizes, however, require 
less than 25, with the consequence that their correspondingly 
increased job costs may drive them into a less competitive posi- 
tion, making sales harder, utilization more difficult to achieve, 
and possibly driving them out of the market. 

One factor that has the potential for increasing production 
quantities is the extent to which the total market is distributed 
throughout the world. If individual segments of the market (each 
capable of supporting HLA operation) are separated by distances 
which preclude ferrying from one segment to another, the total 
number of vehicles required could be larger than if the entire 
market were located within a viable ferry range. Such isolated 
market segments may grow noticeably in areas of the world where 
an economical aerial vehicle is the only practical means of 
access particularly for applications such as mineral resource 
exploration, and even oil and gas exploration. These may become 
economic at altitudes and in terrain that had previously discouraged 
such attempts. 


7-15 





REFERENCES AND BIBLIOGRAPHY 


CHAPTER 8 



LIST 


0 F 


REFERENCES 


V 


1. Boeing Vertol Company, "Feasibility Study of Modern 
Airships, Phase I," NASA CR 137691, May 1975. 

2. Goodyear Aerospace Corporation, "Feasibility Study of 
Modern Airships, Phase I," NASA CR 137692, August 1975. 

3. Goodyear Aerospace Corporation, "Feasibility Study of 
Modern Airships, Phase II," NASA CR 151917, September 1976. 

4. Andrews, B.V., Feasibility of United States Flag Heavy 
Lift Shipping. U.S. Department of Commerce and Lykes 
Brothers Steamship Company. January 1977. Contract No. 
6-38039. 

5. A.J. Keating, "The Transport of Nuclear Power Plant 
Components" Combustion Engineering, Power Systems, Re- 
print of Paper presented at the Lighter Than Air Workshop, 
Monterey, Calif., Sept. 8-13, 1974. pp. 6-7. 

6. Energy Global Prospects 1985-2000. Report of the Work- 
shop on Alternative Energy Strategies, (McGraw-Hill, 

New York, 1977). pp. 267-291. 

7. U.S. Forest Service, "The Outlook for Timber in the 

United States," U.S. Department of Agriculture, Julv 
1974. ^ 

8. United Nations Economic and Social Council, Economic 

Commission for Europe, Timber Committee. TIM/Working 
Paper No. 173/Add. 1, 19 p. July 12, 1972, p. 15, 

footnote 3. 

9. Forecasting Marine Transportation Requirements for 
Imports to Middle Eastern Oil— Exporting Countries 
1976-1985, prepared by CACI, Inc., for the Maritime 
Admin istra,t ion (May 1977), Rept. No. MA-RD-940-77082 . 

10. G.S. Nesterenko and V.I. Narinskiy, "Modern Aerostatic 
Flight Vehicles," NASA TM-75092, May 1978, p. 35. 

11. Draft Report, Delex Control No. D76-6745-I, "The 
Potential of Air Systems in Short Haul, Heavy Lift 
Applications," Department of the Navy, October 19, 1976. 


8-1 





12. Assessment of Energy Parks vs Dispersed Electric Power 
Generating Facilities, final report, Vol. I, prepared 
for the Office of the Science Advisor, Energy R&D 
Office, by Center for Energy Systems, General Electric 
Co., (May 30, 1977) pp. ES-4 to ES-9. 

13. Steve Conway, "Logging Practices, Principle Timber 
Harvesting Systems" (Miller Freeman Publications, Inc.), 

1976, pp. 50-54. 

14. B.J. Sander and M.M. Nagy, "Coast Logging: High Lead 

vs Long Reach Alternatives," Forest Engineering Research 
Institute of Canada, Technical Report No. TR-19, December 

1977. 

15. Technical Change and Its Effects on Ports: Cost Compar- 

isons Between Break-Bulk and Various Types of Unit Load 
Berths, UNCTAD Study, Ref. TD/B/C . 4/129/Supplement 2. 

16. Aerocrane - A Hybrid LTA Aircraft for Aerial Crane 
Applications - Russel E. Perkins, Jr., Donald B. Doolittle, 
pp. 571-584, Proceedings of the Interagency Workshop on 
Lighter Than Air Vehicles, M.I.T. Flight Transportation 
Laboratory, FTL Report R75-2, January 1975, Edited by 
Joseph H. Vittek, Jr. 


8-2 



BIBLIOGRAPHY 


Goodyear Aerospace Corporation, "Development of Weight Esti- 
mating Relationship for Rigid and Non-Rigid Heavy Lift 
Airships," NASA CR-151976, March 1977. 

United Technologies Research Center, "Applications of Advanced 
Transport Aircraft in Developing Countries," NASA CR-14543, 
March 1978. 

World Consultation on the Use of Wood in Housing, Secretariat 
Paper, "Supply of Wood Materials for Housing,” Food and 
Agriculture Organization of the United Nations, 1971. 

Food and Agriculture Organization of the United Nations, 

"1976 Yearbook of Forest Products," Rome, 1978. 

Glenn H. Manning and H. Rae Grinnell, Forest Resources and 
Utilization in Canada to the Year 2000 , Canadian Forestry 
Service, Publication 1304, Ottawa, Ontario, 1971. 

British Columbia Council of Forest Industries, "Canada's 
Forest Resources and Forest Products Potentials," Vancouver, 
B.C. 1972. 

Association of American Railroads. 

The Official Railway Equipment Register National Railway 
Publication Co. 

1970 - International Petroleum Encyclopedia. 

1978 - Oil and Gas Journal, December 26, 1978. 

Offshore, June, 1975-6-7; November 1977. 

Electrical World, January 15, 1978. 

Energy Prospects for the OECD, Paris, 1977. 

Food and Agriculture Organization of the United Nations. 

"Supply of Wood Materials for Housing", World Consultation 
on the Use of Wood in Housing, Secretariat Pap., Sect. 2. 1971. 

1970 Yearbook of Forest Products, FAO of UN (Rome 1978) . 


8-3 


ORIGINAL PAGE 
OF POOR QUALITY 



Consolidated Analysis Center, Inc. 
Caterpillar Tractor Co. 1972, p. 17. 


8-4 



DATA SOURCES 



APPENDIX A 
DATA SOURCES 


Page 


Literature Survey A-1 

Trade Associations Contacted A-1 

Government Agencies Contacted A-2 

Companies Contacted A-2 

Sources of International Market Information 

Contacted A- 3 

Consultants Contacted A- 3 

Embassies Contacted A-3 

Railroads Contacted A-4 




APPENDIX A 
DATA SOURCES 

LITERATURE SURVEY 


Bibliographies from NTIS and Predicast 
LTA Symposia and Workshop Documents 
Documentation of HLA Studies by: 

. Aerocrane 

. Aerospatiale 

. All-American Engineering 

• Bell Aerospace 

. Boeing Vertol 

. Canadair 

. Goodyear Aerospace 

. Grumman Aerospace 

. Piasecki Aircraft 

Other Data Sources 

. Maritime Administration 

. Lykes Bros. Steamship Company 

United States Navy 

. Miscellaneous Papers and Brochures 


TRADE ASSOCIATIONS CONTACTED 


Aerospace Industries Association of America 

American Boiler Manufacturers Association 

American Petroleum Institute 

American Textile Machinery Association 

American Trucking Association 

American Waterways Operators 

Association of American Railroads 

Edison Institute 

Manufacturer Housing Institute 

Motor Vehicle Manufacturers Association 

National Association of Home Builders 

National Industrial Traffic League 

Rail Industry Clearance Association 


A-1 


GOVERNMENT AGENCIES CONTACTED 


National Aeronautics and Space Administration (NASA) 
United States Forest Service 
Federal Highway Administration 

Forest Engineering Research Institute of Canada 

Interstate Commerce Commission 

Bureau of Census 

Highway Research Board 

United States Navy 

American Railroad Association 

Maritime Administration 

Agency for International Development (AID) 

Alberta Ministry of Transportation 
Federal Railroad Administration 
Military Sea Lift Command 


COMPANIES CONTACTED 


Potential HLA Manufacturers/Developers: 

Aerocrane, Inc. 

Bell Aerospace 

- Boeing Vertol 
Canadair 

- Goodyear Aerospace 
Grumman Aerospace 
Piasecki Aircraft 
Sikorsky Aircraft 

Heavy Lift Users; 

American Metal Climax (AMAX) 

- Armco Steel Corp. 

ASEA 

Bechtel Corp., Power Division 

Bechtel Corp., Refinery and Petrochemical Division 

- Brown Sc Root, Inc. 

Combustion Engineering 
Consolidated Gold Fields, Inc. 

Fluor Corporation 

Fluor Ocean Services 
Gibraltar Industries, Inc. 

- Hanna Mining Company 

- Hoosier Engineering Company 

Midland Constructors, Inc. 


A- 2 



Parker Drilling Company 
Tennessee Valley Authority 
Wausau Homes, Inc. 

Westinghouse 

Heavy Lift Operators: 

- Consolidated Rail Corporation 
Evergreen Helicopters 

Frank W. Hake, Inc. 

Illinois Central Gulf Railroad 

- Lykes Bros. Steamship Company 

- Norton, Lilly & Co. (U.S. Agents for Jumbo Shipping) 
Southern Railway 

- Williams Crane & Rigging 
Union Mechling Corporation 


SOURCES OF INTERNATIONAL MARKET INFORMATION CONTACTED 


United Nations 

OECD Publications Office 

World Bank 

Experts in Foreign Market Area 

- Prof. Brian Berry, Harvard 

- Dr. Peter Frank 
Dr. Joseph Kaplan 
Dr. Ira Sohn , NYU 


CONSULTANTS CONTACTED 


Marketing Control, Inc. 

. Commonwealth Associates 

Roy Jorgenson Associates, Inc. 
R. J. Hansen Associated, Inc. 

. Development Alternatives, Inc. 


EMBASSIES CONTACTED 


French 

German 

British 


A- 3 



RAILROADS CONTACTED 


Conrail 

Southern Railroad 

Illinois Central Gulf Railroad