Life cycle cost

Strategies for low life cycle costs

The Swedish Maritime Administration (SMA) is responsible for the Swedish icebreaking service and has conducted a pre-study on how the current icebreakers can be replaced. SSPA has supported SMA with investigations of different aspects, including forecast of future tonnage in the Gulf of Bothnia, evaluation of alternative fuels, alternatives for hybrid solutions, evaluation of different propulsion concepts and overall feasibility studies of different options’ capabilities. The results of these analysis are tools for decision-making. To support the decisions in an economic perspective, the life cycle costs of different key features were assessed.

For the yard building the vessel, the focus is generally on keeping the building and construction cost as low as possible. For the shipowner and operator, SMA in this case, the life cycle costs (LCC) is of the utmost importance. To get the best result, the LCC aspects have to permeate the entire process of design, construction and building new icebreakers. With several parties involved in the process, including design company and yard, finding ways to get all parties to focus on LCC instead of low investment costs is essential. The LCC conducted for project IB 2020 (Icebreaker 2020) involves a number of aspects and the outcome is used for comparisons of different design parameters, of which propulsion is one. 

Read the article Assessing costs for new Swedish icebreakers: a 25-year perspective