I. Background

Aboitiz Transport System Corp. (ATSC) is the dominant market leader in providing passenger and cargo ferry services throughout the Philippine archipelago. Its vessel fleet includes the largest, most modern and most popular passenger ferries in the country, with an unblemished safety record.  

For almost two decades now, ATSC has trusted the expertise of Aboitiz Jebsen Ship Management for the technical management of its fleet of passenger vessels.

The ship-owner client recently embarked on a vessel expansion program and it once again approached Aboitiz Jebsen to assist in the acquisition and handle the conversion / upgrading of a Japanese passenger and car ferry as the latest addition to its fleet.

II. Business Challenge

Vessel conversions and upgrading require a unique blend of expertise in various areas: technical ship management and engineering, naval architecture, vessel safety, finance and strategic project management.  Accordingly, Aboitiz Jebsen assembled a project team composed of superintendents, engineers and naval architects with core competencies in the above-mentioned areas.

In addition to the vessel drydock and upgrading, a crucial part of the vessel conversion involved the re-classification, from JG (Japanese Government), to DNV (Det Norske Veritas) international class society standards, which would require more stringent safety standards.

The project team was provided with a working budget and given a 6-month deadline for completion.

III. How Aboitiz Jebsen Delivered Solutions

Pre-vessel arrival / Vessel purchase
The team met regularly with the client (also as the prospective buyers) to assess their requirements for the vessel.  Both parties agreed on the plans for the improvement and re-configuration of vessel specifications. A preliminary evaluation of vessel stability was done on computer-simulated templates to ensure stability and feasibility of planned modifications.

At the same time, the team conducted its own due diligence regarding the vessel, checking its size, passenger and cargo capacity and main engine performance.  When a suitable arrangement on the sale / purchase transaction was reached, a vessel conduction team from Ship Management was appointed to inspect and take delivery of the newly purchased vessel.

Upon vessel arrival
Upon the turnover and closing of the vessel purchase transaction, the project team immediately took over operations of the vessel. 

On arrival in the shipyard, the project technical crew conducted another round of inspections and prepared for the commencement of the drydocking and upgrading work on the vessel.  Deck plans and superstructure modifications were evaluated for their feasibility and finalized.  Job orders and drydocking specifications were coordinated between the ship yard and the appointed vessel superintendent. 

Meanwhile, wheels started turning for the vessel's registration as a Philippine-flagged vessel and for its impending international re-classification.

Drydocking
Upgrading and improvements to the vessel were carried out in the shipyard.  This included body repairs, fitting of modern navigational equipment and an overhaul of her engines, reconstructions on her superstructure and hull to accommodate an increase in passenger capacity, deck refurbishing and the renovation or provision of facilities such as dining halls, a playground and chapel. 

The drydocking and upgrading stage took the most part of the working time-frame.  For the entire duration of the drydock, the Ship Management project team closely supervised the work on the ship – ensuring all modifications, reconstructions and vessel specifications were complying with international class society standards.

Prior vessel delivery
The final steps in the process involved the conducting of inclining and safety tests and surveys on the vessel for international classification and registration requirements.  The conduction crew were oriented with all the vessel and engine specifications and navigational equipments, along with the vessel’s safety standards. 

After the vessel completed all required tests and documentation formalities, she was declared ready for delivery and sailed away for her maiden voyage!

IV. Passage to Success: The Results

After the conversion project, the specifications of the former Japanese passenger and car ferry had changed as follows:

Specifications                                  Before                                    After

Gross tonnage (mt)                            9,320                                       10,722 
Deadweight tonnage (mt)                   4,383                                        4,664
Classification                                      JG (Japanese Government)       International
Cargo Quantity (teu)                          200                                           208
Passenger (pax)                                 948                                           2,135

The conversion was a success. The Ship Management team had succeeded in fulfilling the client's requirements – more than doubling the passenger capacity of the vessel and complying with the international classification's stringent requirements in ensuring the safety of passengers at all times.  In addition, the project team completed the conversion within the required 6-month timeframe and 10% below budget.