Feasibility Assessment for Managing Dry Docking Operations for a Shipping Corporation

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Client Challenge

The port authorities had floated a tender to identify outsourcing partners to take over the management of the dry dock and to provide the facilities of all types of repairs to the ships in the dry docks. The top management at the client company was interested in evaluating this opportunity, as the corporation would get access to the management of the dry dock, as well as gain control of all major services for repairs to the ships in the dry dock. The company wants to assess the feasibility of managing the dry docks before submitting the tender to the port trust authorities.

Our Approach

To assist the container terminal manager in the takeover processes, UC Strategy interviewed 209 people and assessed their overall fit to the new organisation model based on their qualifications, experience, and then job definitions

  • Met the dry dock superintendents to understand the dry dock infrastructure
  • Obtained the tender copy from the port trust and evaluated the following –

    1) Status of the tendering process

    2) Licensee rights

    3) Licensee obligations

    4) Risk analysis

  • Analysed the dry docking business –

    1) Performance of the dry dock for the previous year of operations

    2) Expected demand of capacity available at the dry dock

    3) The range of service offerings at the dry dock

    Primary research with dry dock officials, shipping corporation officials and service providers, to understand the range of the service offerings at the dry dock

    Secondary research to understand the services provided by the other dry docks across the world

  • Defined the revenue model for the venture
  • Conducted a financial analysis to study the feasibility of the venture by analysing three scenarios
  • Identified the working capital requirement for the venture

Our Impact

Based on the analysis conducted by UC Strategy, the client decided whether the company should take over the management of the dry dock, or not.