28 FOGHORN Imagine an operator working to procure a new hybrid fer- ry. Their initial plan calls for a shipyard RFP to be released in August with a 90-day response window. If they delay their release of the RFP by just a few months, the selected shipyard will likely not be under contract until the follow- ing calendar year. This may seem like a minor shift, but it introduces multiple challenges. All pricing will now be subject to year-over-year cost increases and depending on how long they are expected to hold their pricing, vendors may include additional escalation factors to protect against tariffs in a volatile market. We’ve seen firsthand how sit- uations like this can lead to a boat not being built despite multiple interested bidders. The implication is clear: once a project reaches a certain level of maturity, it is often advantageous to move for- ward decisively rather than prolong planning in search of marginal improvements. While due diligence is essential, excessive deliberation carries additional risk. In short, time is not on our side when we are looking to build a hybrid or electric ferry. SHIPYARD REALITIES No matter how sophisticated the design is, the success of a hybrid ferry ultimately depends on the shipyard tasked with building it. Shipyard capacity remains constrained in many parts of the country, with limited availability of dry- dock slots and skilled labor. Securing an appropriate build slot early is therefore essential. Equally important is ensuring that the shipyard has rele- vant experience with hybrid or electric systems. These ves- sels introduce complexities that differ significantly from conventional builds, particularly in electrical integration, cabling, and system commissioning. Contractual alignment is another critical factor when it comes to shipyards. Terms and conditions must clearly define risk allocation, particularly in areas such as design responsibility, integration scope, and performance guar- antees. Misalignment here can lead to disputes, change or- ders, and cost overruns during construction. People often assume that the hybrid or electric technology is the biggest reason shipyards don’t bid a project, but most often it’s the terms and conditions that lead to no-bid decisions. Finally, all parties must share a common understanding of the level of design maturity at contract signing. Incom- plete or evolving designs increase the likelihood of rework, which negatively impacts both schedule and budget. THE ROLE OF THE INTEGRATOR The integrator plays a key role in hybrid ferry projects, yet there is often confusion about this role and the ex- tent of their responsibilities. We think of integration as a spectrum. At one end, an integrator may supply indi- vidual components and leave much of the coordination between these components to the shipyard. At the other, the integrator may deliver a complete system, including software, controls, installation support, and commis- sioning. While the component end of the spectrum is lower in cost, it puts much higher burden and risk on the shipyard. Conversely, having an integrator provide a complete bridge-to-propeller solution will be higher in cost but significantly lowers the risk and level of effort for the shipyard. Ultimately the role of the integrator must be clearly de- fined from the outset. Gaps or overlaps in responsibility can create inefficiencies, delays, and accountability chal- lenges during construction. The integrator’s role is jointly defined between the shipyard and operator based on the comfort level of the shipyard, the project budget, and the complexity of the system. When selecting an integrator, operators should look be- yond technical compliance and price. Experience with similar projects, proven reference vessels, and the ability to meet operational goals are equally important. We have seen operators make decisions based purely on price or using the faulty assumption that selecting an in- tegrator is the same as selecting an engine supplier. The integrator plays a much more important role and as a result, additional diligence during selection is needed. Operators should review all the prospective integrator’s existing cus- tomers, ride their reference vessels, and do whatever they can to understand what working with them will be like. In these complex, multi-year projects, the relationship with the integrator is crucial to success, so trust must be estab- lished and maintained. COMMUNICATION AS A CORE COMPETENCY One of the more understated lessons from hybrid ferry projects is the importance of communication. The num- ber of different stakeholders, including operators, design- FOGHORN FOCUS
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