ASSET MANAGEMENT
for facilities more than 30 years old. Harsh marine environments or heavy industrial use may require allocations of 2–4 percent. For a $100-million dock, Daley illustrated the implications: routine maintenance at roughly 1–2 percent of capital cost would mean approximately $1 million to $2 million annually. Major maintenance could require sub- stantially larger periodic expenditures, with an illustrative cash flow of about $15 million every 10 years. Those numbers demonstrate why deferring maintenance can be so costly. A relatively modest annual investment can help avoid much lar- ger rehabilitation or reconstruction expenses later. A different way of thinking about capital projects The session ultimately challenged ports to look beyond the traditional distinction between capital projects and maintenance. A new berth, crane, terminal or marine structure is not a one-time investment. It is the beginning of a
decades-long relationship between the owner and the asset. Decisions about materials, design details, fabri- cation, inspection, maintenance and rehabilitation all influence the even- tual cost, reliability and operational performance. That means asset management should be embedded into the project from the beginning. As Daley’s presentation concluded, ports cannot defeat physics — and they cannot always overcome the political preference for new pro- jects over maintenance. But they can design for durability, establish profes- sional inspection programs and make sure adequate resources are available throughout an asset’s life. For ports facing aging infrastruc- ture, rising construction costs and increasing demands for reliability and resilience, the message from Daley and Martinez was clear: the best time to manage an asset’s life cycle is before the life cycle begins. And perhaps Daley’s final recom- mendation is the most practical of all: “Have a sense of humor.”
prolong structural life indefinitely. Daley offered a similarly practical approach: establish a professional inspection and maintenance program, maintain good records and budget for both routine and major maintenance. For a waterfront facility, that can mean annual inspections, cleaning, coating touch-ups and electrical test- ing, combined with more extensive periodic activities such as underwater inspections, pile surveys and fender assessments. Larger interventions may eventually include replacement of fenders and cathodic protection sys- tems, deck rehabilitation and utility replacement. The key is to anticipate those costs rather than treat them as surprises. Putting a price on longevity Daley provided some useful bench- marks for thinking about main- tenance budgets. His presentation suggested annual maintenance allo- cations ranging from approximately 0.3–0.8 percent of capital cost for a new dock, rising to 1.5–3 percent Daley strongly recommended frequent use of the Waterfront Facilities Inspection and Assessment Guidebook from the American Society of Civil Engineers.
Sharon Weissman, Port of Long Beach, presented John and Steven with speaker gifts following their presentation.
October 2026 — PACIFIC PORTS — 45
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