The Myth of the All-Inclusive Turnkey Contract Edward West (Cable - - PowerPoint PPT Presentation

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The Myth of the All-Inclusive Turnkey Contract Edward West (Cable - - PowerPoint PPT Presentation

May 28, 2023 374 likes •615 views

conference & convention enabling the next generation of networks & services The Myth of the All-Inclusive Turnkey Contract Edward West (Cable & Wireless Worldwide) conference & convention enabling the next generation of

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The Myth of the All-Inclusive Turnkey Contract

Edward West

(Cable & Wireless Worldwide)

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Presenter Profile

Edward West joined Cable & Wireless in 2000, since when he has worked on systems including Japan-US, Maya-1, PanAm, EIG and WACS. He is a Chartered Engineer and Chartered Physicist. He is a Member of the Institute of Physics and a Member of the Institution of Engineering and Technology.

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Edward West Principal Engineer Email: edward.west@cw.com Tel: +44 20 7528 2815 Mobile Tel: +44 7957 808680

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Presentation Overview

  • Turnkey contracts and their application to

the submarine cable system market

  • Alternative modular approaches
  • Purchasers as system integrators
  • Summary and conclusions
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Section 1: Turnkey Contracts and the Submarine Cable System Market

Is submarine system project implementation as simple as just “turning the key”?

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Turnkey is an Unquestioned Principle

  • Submarine projects

are almost always based on turnkey supply

  • Non-turnkey solutions

are usually rejected

  • ut of hand

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Ideal Model of Turnkey Supply

(Purchaser) (Supplier)

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Simple Model of Turnkey Supply

  • Product/service

provided ready to use

  • Appropriate to simple

products which can be provided “off the shelf”

Supplier Purchaser

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Benefits of Turnkey Supply

  • Simple, integrated organisational structure
  • Purchaser’s input minimised
  • One stop shop
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Fit to Submarine Cable Industry

Complexity

  • Complex, technically

challenging product

  • Bespoke solution

Integration Purchaser effort

  • Devolution of work
  • Different products from

different business units

  • Purchaser involvement

needed in implementation

  • Overall project includes

Purchaser-only activities

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More Realistic Model of Submarine System Procurement

Purchaser PG Submarine System Supplier Station M&E Land Route Station Buildings Back- haul NA NOC Synchro- nisation SDH Supplier Backhaul Equipment Supplier Marine Sub Plant SLTE

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Section 2: Modular Approaches to Submarine Cable Procurement

Modular applications of turnkey procurement to submarine cable projects

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Geographical Division of Work

  • Different segments provided by different

suppliers

  • Risk and capability shared by the

various suppliers

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Division of Work by Product

  • Different suppliers

provide different products

  • Example: SDH

procured separately from sub plant

  • Best supplier for

individual job

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Section 3: Purchasers as System Integrators

Purchasers take on responsibility of ensuring that the completed system performs correctly as an integrated whole

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Purchasers as System Integrators

  • Different suppliers for marine activities,

submerged plant and terminal equipment

  • Responsibility of ensuring that the completed

system performs correctly as an integrated whole rests with the purchaser

  • C&W Worldwide has acted as

systems integrator

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Purchasers as System Integrators

  • Pros:

– Flexibility – Multi-vendor environment – Cheaper

  • Cons:

– Multiple contracts – Increased Purchaser responsibility

Purchaser effort Purchaser risk/ responsibility Best solution Price

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Other Factors

  • Purchasers are risk-averse
  • Long haul / regional system
  • Consortium / private system
  • Ability of Purchasers to contribute significant

asset is key factor

– Redeployed submerged plant – Shore end re-use – Terminal equipment

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Section 4: Summary and Conclusions

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Summary

Purchaser Supplier

Theoretical turnkey Submarine turnkey Purchaser integration

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Conclusions

  • Benefits of turnkey supply have not always

been realised in the submarine cable system market

  • Purchasers who have the capability can

perform the system integration themselves

  • Revival of previous incarnation of industry?
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2010

Pacifico Convention Plaza Yokohama & InterContinental The Grand Yokohama 11 ~ 14 May 2010 www.suboptic.org

enabling the next generation of networks & services

The 7th International Conference & Convention

  • n Undersea Telecommunications

conference & convention