attachment 3_pinnacle decommission study_transportation of major components_mcm

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  • 8/7/2019 Attachment 3_Pinnacle Decommission Study_transportation of Major Components_mcm

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    Date: January 10, 2011To: Mineral County Commissioners (via Mineral County Clerk)Subject: Pinnacle Decommission Study - transportation of major components.

    I am unable to attend the Commission meeting scheduled for January 11, 2010. Please enter thissubmission into the public record for the purpose of challenging the decommission studyprepared by G.L. Garrad Hassan.

    Since it appears US WindForce does not have responsibility to determine the model orbrand of turbine and, lacking a shipping list with weights and dimensions, I cannotdetermine accurate shipping cost for major items.

    o My 25 years in the transportation/project/manufacturing business does, however,

    lead me to believe that the estimate provided by GL Garrad Hassan isconsiderably off the mark, if, as stated by GLGH, the more complex and valuablematerial is assumed to be transported within a radius of 500 miles. (e.g.: blades, hubs,nacelles and tower sections)

    o It is my belief that the per-mile estimate of $3.00 or $4.50 per mile for these

    major components is flat wrong, and terribly misleading.o Estimating heavy lift/overweight/over dimensional cargo on a per-mile basis

    could, in my opinion, easily cause the estimate of $361,500 for transportation ofthese components to be off by a factor of 5 or, likely, more.

    Nacelles:o Based on industry averages, I would imagine each nacelle to weigh in the

    neighborhood of 180,000 lbs.o I suspect the dimensions are outside of standard shipping dimensions, as well.

    o This excessive weight will require use of a specialized trailer to transport each

    nacelle to its destination, which again, GLGH allows as anywhere within a 500mile radius.

    o To presume this can be achieved for a mere $1,500 dollars each is, in my

    estimation, ludicrous. Hubs:

    o It is suggested by GLGH that the hub sections can be shipped in sets of 2.

    o Most, if not all states have laws restricting shippers to land only one overweight

    piece to a deck and further, the shipper cannot combine pieces that will increasethe weight beyond a legal weight limit.

    Again, not knowing the weight of each hub, but suspecting each may near25,000 lbs., I believe the hubs must will be required to ship in single units.

    Blades:o The same is perhaps true of shipping the blades in sets of 2.

    o Again, I dont know if the pair will exceed legal weight limits.

    o But, even if the weight of the blade set were light enough to meet weightrequirements to ship in pairs, most, if not all states will not permit shippers tocombine components which will extend the length or width creating anunnecessary out of legal dimension load.

    o Also, the length of the blades will presumably call for special stretch deck

    equipment.o I believe it likely the blades will ship one per truck.

    Tower sections:o The tower sections utilized for most brands are also of considerable weight and

    length.

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    o It is my belief that, at minimum, specialized multi-axle equipment will be

    required to transport these sections.o I believe the cost to transport the individual tower sections to any point within a

    500 mile radius will far exceed the $2,250 estimated in the study.

    Conclusion:o It is my belief that the GLGH estimate of $361,500 could easily be understated by

    a factor of 5, and likely, considerably more.

    Resolution:o The Mineral County Commissioners, for the sake of reasonable escrow funding,

    should require US WindForce to take one of the two, easily accomplished, actionsto determine a more accurate transportation cost for these few major components.

    Break out the transportation estimate section pertaining to thesecomponents from the original cost roll up of the project.

    or,

    Request a quotation from an experienced heavy hauler (SpecializedCarrier and Rigger Association scranet.org will provide a list of carriers,by region)

    o Either could be completed within days of the request, not delaying the project by

    weeks or months. Asides:

    o Im familiar with the major specialized carriers equipped to haul this cargo.

    o I am not convinced any of these carriers would move this equipment from Green

    Mountain to a point within 500 miles for the costs estimated.o If, in fact, GLGH can provide a qualified carrier who will do so, I have a number

    of clients who would secure the carriers services.

    Supplemental Note: If it is suggested that rail might be used to reach the estimated costsin the study, be sure to consider these issues:

    Clearance limitations become very restrictive as cargo moves east.

    Severe limitations in height and width preclude rail shipment through/in the

    Shared Asset area affecting a large portion of PA, NJ and NY ports/destinations. Unless there is rail service under hook at origin and destination, it will benecessary to:

    1. Truck transport to near siding at origin, load and secure to specialized railcar2. Rail transport to near siding at destination within 500 miles3. Unload and clear rail car at near siding, truck transport to under hook atfinal destination.

    In my opinion, even a base rail transport cost (2) (when labor and materials forsecuring/removal to/from rail car are included), will far exceed quoted transport cost,notwithstanding the other activities listed in (1) and (3), if necessary.

    It is my belief that, once real transportation costs are considered, the $35,000 profit (scraprecovery v decommission cost) touted by US WindForce in the press will not only evaporate, butturn dramatically negative. Further, if my suspicion regarding transportation cost is, in fact,confirmed, it would demand that the Commissioners require further evaluation of the entiredecommission study by a credible second source.

    Thank you,

    Michael C. Morgan

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    Keyser, WV 26726