SEPT OCT 2013

1PUBLISHER: Slower Chinese growthPROJECT PUBLISHERS seen as a short-termTEL: +27 11 346 5053 Arecently weakened showing by the were using short-term funds toEMAIL: [email protected] Chinese economy was likely a finance long-term deals, and wereWEBSITE: www.projectpublishers.co.za shorter-term trend on the back of packaging funding deals into tightened monetary policy by investment products boasting62, 2ND AVENUE, HOUGHTON, China’s central bank, as the attractive terms.JOHANNESBURG. economy transitioned fromP.O. BOX 92744, investment-led to one driven by the “In a world that has recently livedNORWOOD 2117 services and household through a sub-prime-inducedJOHANNESBURG, consumptions sector. financial and banking crisis, it wasn’tSOUTH AFRICA. difficult for the PBoC to see how the Absa Private Client Asset story could quickly turn ugly. AfterDESIGN Management head Craig Pheiffer turning the screws a bit, the PBoCAND LAY OUT OF said at a media briefing on Thursday did provide liquidity to the system,THE MAGAZINE that, while the Shanghai Interbank but it did come with warnings to Offered Rate “shot through the roof” correct lending behaviour andIN - HOUSE in June as liquidity in the banking promote stability in the monetary system was squeezed, this was an environment,” he said.PROJECT PUBLISHERS publishes intentional move by the People’sProjects Magazine and several special Bank of China (PBoC) to curb a However, Pheiffer noted that a briefStand Alone Publications in different dramatic growth in credit extended tightening of the monetary system insector industries , mainly in South Africa. by financial intermediaries. an economy in which growth wasWe aim at high standards of quality of the slowing was disconcerting to globalservices we offer advertisers as well as “For a while, in China, it looked like markets, and had resulted in a 14%readers. The Publisher does not accept the lead-up to the global financial drop in the Shanghai Stockany responsibility for the accuracy or crisis all over again. Overall, what Exchange Composite Index in June.authenticity of the contributions we’ve seen is that the PBoC is quitecontained in the Magazine and prepared to take on the short-term He added that, for the rest of theadvertisements. Views expressed by the pain to transition the economy, world, China’s “heavy-handedness”contributors are not necessarily those of which is a process that will have its had raised questions about itsthe Publishers dark days,” he said. growth potential, the level of its demand for commodities, and the© All rights reserved Pheiffer cautioned that this might impact of a slowing Chinese translate into upcoming financial economy on global economies. quarter performances that buck the growth trend previously observed in South Africa had already seen the the Chinese economy. impact of slowing Chinese growth, and this, coupled with recessionary “We might have a few quarters that conditions in Europe, had hurt South don’t look that good at all, which may African exports and domestic be quite shocking for the market. manufacturing production in the The country’s desire to get things second quarter. right and deleverage the economy is going to come with a bit of pain, but “South Africa is not an island, and we have a lot of confidence that the our current low rate of growth can PBoC will manage that transition,\" partially be attributed to the slow rate he commented. of growth in the global economy,” said Pheiffer. Recent Chinese economic data had pointed to slower-than-expected Absa Capital last week lowered its growth, leading to Absa cutting its 2013 gross domestic product (GDP) 2013 growth forecast for the country forecast for South Africa from 2.7% to 7.4%, from its previous projection to 2.3%, making it the latest in a of 7.8%. number of recent downward revisions for Africa’s largest China’s shakier second-quarter economy. performance was the result of the central bank’s squeeze on the The International Monetary Fund “huge” growth in lending from the this week forecast GDP growth of ‘shadow-banking industry’, or 2% for SouthAfrica. nonbank financial intermediaries. Overall, Absa is forecasting global Pheiffer noted that, apart from growth of 3.1% in 2013 and 3.8% in increased lending, intermediaries 2014. 1

New Hospital to launch soonThe steadily increasing Centurion will soon boast of the arrival of a brand new on capital projects, new equipment and repairs and of demand for private role player in private medical health. The Centurion maintenance. healthcare in all three Mediclinic, located in Midhill Boulevard in geographies where Olifantsfontein. This development seeks to improve Mediclinic operates private hospitals in South Africa, Mediclinic operates hospital facilities and enhance medical care in the Namibia, Switzerland and the United Arab Emirates. has detailed Gauteng region. The Group remains uniquely positioned across three considerable amounts diverse international operating platforms with stable being spent on This multidisciplinary medical facility is conveniently and experienced management teams in place. expanding operations situated close to all main access routes to the Pretoria Mediclinic SouthernAfrica plans to add another further particularly in South city centre. The hospital will boast of 174 beds and 24- 368 beds to existing facilities by 2014 in addition to this hour casualty and emergency units and is set to launch new hospital in Centurion.Africa and Switzerland. by the end of 2013. The hospital will offer patients a broad spectrum of professional medical services and Mediclinic SouthernAfrica, Mediclinic Switzerland and impeccable nursing care provided by highly skilled Mediclinic Middle East Emirates all increased revenue personnel corps. Mediclinic has budgeted to spend due to a change in the construction of additional beds. more than R1bn this year at its southernAfrican units In Southern Africa the number of licensed hospital beds increased from 7 103 to 7 115 in the first half of the year and is expected to reach 7 237 by the end of the financial year. Building projects are still in progress and planning as well will take this to 7 657 licensed beds at the end of the 2014 financial year. Mediclinic is budgeting just over R1 billion to be spent this year at its Southern African operations on capital projects, new equipment and repairs and maintenance.2

Construction projects boostChina's image in KenyaOngoing and completed road construction works in local contractor over three years to build a 10 km \"All the public knowsKenya have immensely boosted China's image road in Upper Hill area in Nairobi. Why give such about China in Kenya isamong Kenyans. The roads, a first in Kenya, have people jobs yet the Chinese can complete the project good quality roads. Thedemystified and cemented China's image in the on time and do quality work?\" noted a female image that Kenyans heldminds of citizens of the East Africa's biggest passenger. about fake mobile phoneseconomy, many who now associate Chinese with and cheap clothes is fastfinesse, quality and perfection. Another passenger took the conversation outside fading. The roads have Nairobi. \"I am come western Kenya. For the past become a huge sellingBefore the start of the road constructions, many three years, a certain contractor has been building point for the Chinese,\"Kenyans associated China with bogus and cheap the main highway to Kisumu yet he has not said Mbuti.products. The Asian giant was best known for cheap completed it. The road is in bad shape, making usapparels, utensils and electronic items. It was suffer each time one is travelling up country. I wishcommon to hear Kenyans cracking jokes about they had given the work the Chinese,\" said the man.Chinese items. Such conversations have wiped out the negative\"Is that mobile phone made in China? That is why we perception Kenyans had of the Chinese. In Nairobi,cannot communicate well,\" a person would be told they have become common especially duringeven if they did not have a Chinese-made handset. morning and peak hours when commuters onBut entered Thika superhighway and the image of various roads spend endless hours in traffic jams asChina has completely changed among Kenyans, their counterparts on Thika superhighway cruise toincluding those in rural areas where the road's fame work or home. \"The Chinese contractors arehas spread. fantastic in their work. If it was a Kenyan company, it would still be doing the work or it would have longThe 353 million U.S. dollars thoroughfare that finished but we would now be negotiating throughstretches from Nairobi to Thika turned around potholes,\" is a comment on the lips of many NairobiChina's image in Kenya. The eight- lane 30 km road commuters as they pass on road the Chinese arestretching from capital Nairobi to Thika, an industrial working on.district, not only attracts local tourists, but has alsobecome the point of reference of China and activities Thika superhighway is just one of the completedthat relate to them. projects by the Chinese companies. These projects are acting as their ambassadors as they create aThe Chinese in Kenya are now known for lasting image among Kenyans. The Northern bypassconstruction of better roads than anything else. Their is another work of the Chinese company. It stretchesworks and name always pop up in many from Ruiru, through Ruai to Mombasa Road, andconversations, especially those that involve traffic joins Old NorthAirport road, which is a key alternativejams, poor road network or construction. \"The artery to JKIA.government should offer the Chinese the contract tobuild this road. The traffic jams are going to kill us,\" Ongoing road projects in the capital, according tonoted a passenger recently in vehicle along Outering Kenya Urban Roads Authority, are rehabilitation andRoad on the east of the capital. dualing of Langata Road from Kenya Wildlife Service entrance to Bomas and Construction of CityThe pot-holed road, which heads to Jomo Kenyatta Cabanas interchange. The Chinese are also workingInternational Airport (JKIA), has become a pain, with on the northern corridor road project, which connectsmotorists damaging their vehicles and spending Mombasa and Nairobi to Ethiopia and South Sudan.hours in traffic jams every morning and evening.Interestingly, the road joins the Northern bypass and The companies involved in the works include ChinaThika superhighway, which are in perfect form. Wu Yi, Synohydro Corporation, Shengli Engineering Construction Group and China Road & Bridges\"This road was constructed recently but just look at Corporation. The fact that the Chinese build roads ashow it has degenerated. It is barely two years since it Kenyans watch and use them has made their workwas re-carpeted but it is now full of potholes. The stand out.government let the Chinese rework on it,\" notedanother passenger. Soon, all the passengers in the Unlike other contractors who close roads when theyvehicle were discussing about Chinese road are constructing them, the Chinese allow motorists toconstruction works. use them as construction progresses. This has resonated well with Kenyans. Dennis Mbuto, a public\"It took the Chinese about two years to complete relations consultant noted that Chinese have turnedThika superhighway as big as it is, yet it has taken a around their image in Kenya. 3

Diesel Generators Diesel Generators are prime movers which are standby backup to grid power. These units, referred used where power is not available or where stand- to as power modules are gensets on large triple axle by generator sets are used if the normal power trailers weighing 85,000 pounds (38,555 kg) or more. supply fails. These generators are powered by A combination of these modules are used for small diesel engines and can be portable or stationary. power stations and these may use from one to 20 units per power section and these sections can be Most houses and businesses have extensive combined to involve hundreds of power modules. In security systems and a power outage can put one these larger sizes the power module that is the engine on risk. Battery back-up systems can help for a and generator are brought to site on trailers while but eventually they will fail. Most companies separately and are connected together with large have become reliant on computers for their cables and a control cable to form a complete businesses and without a back-up generator most synchronized power plant. companies will stop trading. Nowadays a diesel generator is essential and should be included in Fuel consumption is the major portion of diesel plant the cost when one is planning a new house or owning and operating cost for power applications business premises. Power outages are sure to whereas capital cost is the primary concern for continue into the near future. backup generators. Specific consumption varies but a modern diesel plant will consume between 0.28 and A diesel generator is the combination of a diesel 0.4 litres of fuel per kilowatt hour at the generator engine with an electric generator often an terminals. alternator to generate electrical energy. Diesel generating sets are used in places without However diesel engines can operate on a variety of connection to the power grid as an emergency different fuels, depending on configuration, though power-supply if the grid fails as well as for more the eponymous diesel fuel derived from crude oil is complex applications such as peak-lopping, grid most common. The engines can work with the full support and export to the power grid. Sizing of spectrum of crude oil distillates, from natural gas, diesel generators is critical to avoid low-load or a alcohols, gasoline, wood gas to the fuel oils from shortage of power and is complicated by modern diesel oil to residual fuels. This is implemented by electronics specifically non-linear loads. introducing gas with the intake air and using a small amount of diesel fuel for ignition. Conversion to 100% The packaged combination of a diesel engine, a diesel fuel operation can be achieved generator and various ancillary devices such as instantaneously. base, canopy, sound attenuation, control systems, circuit breakers, jacket water heaters Manufacturers provide detailed installation and starting system is referred to as a \"generating guidelines to ensure correct functioning, reliability set\" or a \"genset\" for short. and low maintenance costs. Guidelines cover such things as sizing and selection, electrical factors, Set sizes range from 8 to 30 kW (also 8 to 30 kVA cooling, ventilation, fuel storage amongst others. single phase) for homes, small shops & offices with the larger industrial generators from 8 kW (11 Diesel engines can suffer damage as a result of kVA) up to 2,000 kW (2,500 kVAthree phase) used misapplication or misuse - namely internal glazing for large office complexes, factories. A 2,000 kW occasionally referred to as bore glazing or piling and set can be housed in a 40 ft. (12 m) ISO container carbon build-up. Ideally, diesel engines should be run with fuel tank, controls, power distribution at least 60% to 75% of their maximum rated load. equipment and all other equipment needed to Short periods of low load running are permissible operate as a standalone power station or as a providing the set is brought up to full load or close to4

full load on a regular basis. The situation can be whereby a generator runs a continuous unvarying load or is paralleled with the mains and continuouslyprevented by carefully selecting the generator set in feeding power at the maximum permissible level of 8,760 hours per year. This also applies to sets usedaccordance with manufacturers printed guidelines. for peak shaving or grid support even though thisGenerators must provide the anticipated power may only occur for say 200 hours per year. Often arequired reliably and without damage and this is set might be given all three ratings stamped on theachieved by the manufacturer giving one or more data plate, but sometimes it may have only a standbyratings to a specific generator set model. A specific rating, or only a prime ratingmodel of a generator operated as a standby Diesel generators have some additional benefitsgenerator may only need to operate for a few hours such as an extremely quiet operation. The inter-per year but the same model operated as a prime cooled diesel generator can normally run forpower generator must operate continuously. When thousands of hours if maintained correctly. Therunning the standby generator may be operated products come with a 2000 hour warranty and a 24specifically the same model generator will carry a hour backup support is provided. One can also makehigher rating for standby service than it will for use of the maintenance service agreement and well-continuous duty. Manufacturers give each set a known brand names are always in stock suitable forrating based on internationally agreed definitions. home, business and industrial activities.These standard rating definitions are designed toallow correct machine selection and valid .comparisons between manufacturers to preventthem from misstating the performance of theirmachines and to guide designers. The GeneratorRating Definitions are grouped into three categoriesnamely Standby Rating, Prime (Unlimited RunningTime) Rating and Base Load (Continuous) Rating.There is also what is referred to as typical application 5

Braamfontein -Development of Digital Research hub Coworking areas, The Joburg Centre for Software Engineer- ing (JCSE) “A cluster also needs to offer good quality of life factors where students and aims to develop Braam-fontein as a digital research to draw companies and the wealthy so that thisothers wishing to learn and devel-opment cluster that will provide segment of society can establish themselves in theand innovate can work programming, development and business incubation cluster and use the concen-tration of skills andtogether in a social and to support the increased use of digital systems and innovation.an informal setting, are devices by industries, says JCSE director Professor a key component of a Barry Dwolatzky. When the young innovators have become more affluent, they will invest and some will open their own cluster All industries increasingly use information and companies to support the next wave of industries.” communication technology devices and software to conduct business and support internal systems while Braamfontein also has good access to public the use of digital devices, digital content and software transport, such as taxis, buses and trains, owing to the is expected to balloon in future. Rea Vaya bus rapid transit system and the Gautrain. The area houses about 5 000 students from South The Tshimologong Precinct project, which is situated Africa and other parts ofAfrica. close to the University of the Wit- watersrand (Wits) and the University of Johan-nesburg, will provide the . These areas are required to draw entrepreneurs, expert skills, training, job creation and enterprise innovators and energetic students and they also boost development support needed to develop the precinct the quality of skills in the cluster, as people collaborate into a vibrant high-technology digital development and and share information. business cluster. Dwolatzky aims to have the buildings in inner-city “The Tshimologong Precinct project aims to Braamfontein that are owned by Wits repurposed to demonstrate how one can take inner-city buildings house the JCSE, training centres, incubation and use them for different purposes. programmes, start-up office space and lifestyle areas that will comprise, for example, cellphone stores, We believe that Braamfontein has this mix; for restaurants and coffee shops. example, global brewer SABMiller, furniture group JD Group, paper and pulp giant Sappi, State-owned rail “Silicon Valley, in the US, started as a cluster. There group Transnet, mining companies and open-source are several key factors governing the success of programming company ThoughtWorks are operating clusters – a concentration of customers and suppliers, in the area.” skills development and those who work in the industries. Once a cluster becomes known for its good lifestyle and human capital, large companies that consume the The cohesion of the cluster is maintained by products, skills and software produced will move in, associated institutions, such as universities and such as search engine giant Google, global research institutes.” networking major Cisco and computing giant IBM, some of which located to the Silicon Roundabout, in Clusters require a concentration of researchers, London, following the cluster’s successful growth. students, entrepreneurs and inventors, as well as companies to employ the people and develop the “The universities link us with the human capital ideas. development required to develop the precinct into a digital development cluster, but we require more Clusters also require a concentration of wealth and support from local govern-ment in the form of good Gauteng produces more than a third of South Africa’s water, electricity and sewerage infrastructure and gross domestic product, despite being the smallest services.” province, highlights Dwolatzky. A digital cluster requires fast and reliable connectivity to support innovation in the connected world. It will also support col- laboration with other clusters, such as the Band- width Barn, in Cape Town, the iHub cluster, in Kenya, and the Silicon Roundabout, in London.6



Kenya Aspires to beEast Africa Hydrocarbon Transit Hub Kenya is moving In early April, a consortium led by China pitch in $1.5 billion, but it’s not a done deal and only a forward incrementally Communications Construction Company won the drop in this bucket. tender to build the first three berths at Kenya’s Lamu with its massive $24 Port—the first step towards an overall plan that will link The Kenyan government also isn’t quite sure yet how billion regional South Sudan and Ethiopia—both landlocked—to the private investors could play a role. They are Indian Ocean port and create the infrastructure considering the possibility of private public infrastructure project, necessary to bring East African hydrocarbons to partnerships (PPP) and joint ventures, but nothing is the Lamu Port-South international markets. set in stone yet. In early April, the Kenyan governmentSudan-Ethiopia Transit set up an independent body to monitor the Corridor (LAPSSET), This is the second major tender for China implementation of LAPSSET, which will be tasked withawarding a key tender Communications Construction Company, whose controlling investment and construction.to a Chinese company. China Road and Bridge Corporation (CRBC) paid $66.7 million to expand Kenya’s Mombasa port in But there’s another angle to this story that could be 2011, and another $2.66 billion in 2012 to build a upsetting to LAPSSET: South Sudan is no longer railway connecting Mombasa to the capital, Nairobi. desperate for this project to go ahead. Now that Sudan The Mombasa port is EastAfrica’s largest. and South Sudan have made up for the most part, with South Sudan resuming oil production and exports, the LAPSSET is where economics and vanity collide: building of LAPSSET is a bit less urgent, and there is time now to consider alternative pipelines—and less The LAPSSET corridor will turn Kenya into a gateway pressure. for business in East Africa and the Great Lakes Region, as well as the key transport hub for the entire South Sudan is also planning to build its own refinery, region. LAPSSET includes the new Lamu Port in which will further reduce its dependence on Kenyan Kenya, a major regional highway and railway and a infrastructure projects. pipeline. Specifically, the project includes: If the South Sudan-Sudan agreement holds out, it could lead to rethink of the LAPSSET acronym, • Lamu Port in Kenya, with 32 berths costing $5.3 particularly the “SS”. South Sudan’s crude might not billion be available for the LAPSSET pipeline and connected refineries in the volumes planned. • A $2.8 billion oil refinery at Lamu Port (this will be Kenya’s second oil refinery, with the Mombasa Will it put the entire LAPSSET project at risk? Well, it Refinery at a 70,000bpd capacity) does at present depend on crude from South Sudan, but we’ll go with the optimistic scenario that Kenya will • A $3.9 billion, 1,300km oil pipeline running from prove commercial viability of its recent massive Lamu to South Sudan, which will double as a fiber discoveries soon. So, there should be enough crude to optic route make this enormous infrastructure project feasible. • 1,720km super highway connecting Ethiopia to There is also a good chance that South Sudan will South Sudan start exploration for new hydrocarbons reserves in the near future. • An $8.08 billion, 1,620km (standard gauge) railway line running from Lamu to Juba, with a branch to Neighboring Uganda—which sitting on massive Ethiopia; costs to be shared by Nairobi, Juba and reserves itself—could also choose to hook up to the Addis Ababa Kenyan infrastructure project to boost available volumes of crude. And then there is always the hope • Three international airports: Lamu, Isiolo, that Tullow will make its first major discovery in Lokichogio Ethiopia—on an extension of its Kenyan finds—soon. Kenya is hoping that the tender for the first three berths will be the ground-breaking event that will bring other investors to the table. This is where the critics like to chime in—and some of them say the project is too grand and represents an astronomical waste of money that could be used to rebuild the country’s existing infrastructure rather than focusing on making Kenya the regional powerhouse. How much money is still needed to make this project a reality? Almost all of the total cost, minus the three berths just tendered out to the Chinese. The Development Bank of Southern Africa (DBSA) may8



mpemoyeni professional engineering Contact: Brian Roberts Pr Eng MBA Cell: 082 579 6249 Tel/fax: 011 682 2759 Email: [email protected] P.O.Box 14 Glenvista, Johannesburg, 2058 Moyeni Professional Engineering (mpe) is a specialist Transportation Engineering company in: Transportation Planning Traffic Engineering Development realization (transportation aspects) Expert witness for legal cases The company is headed by Brian N Roberts who is a registered professional engineer with the Engineering Council of South Africa (Reg no 830064) studied at the University of the Witwatersrand and also holds an MBA.Brian operates as a specialist outsourcing basic engineering aspects toselected colleagues / companies.He also consults to private and publicsector built environments, including economic development projects aswell as act as an expert witness in legal matters. In this way Brian's 33years of extensive experience can be used most effectively.In additionto this, Brian personally coordinates and drives the mpe projects.CLIENTS Mall at Middelburg ProjectA majority of our clients include but are not limited to the following;Public sector Provincial, Metropolitan and Local Authorities Development Agencies, Road Agencies, Transportation Departments SANRAL and DoTPrivate sector Corporates / Institutions Mining Groups Private Companies owning property both vacant and occupied Individual owners of Land Property Developers Oil Companies Consultants including project managers, architects, town planners, civil?engineers, lawyers, quantity surveyors and EIA practices.Moyeni Professional Engineering10

CAPABILITY STATEMENT Moyeni Professional Engineering is capable of effectively undertaking the following: Transportation Formulation of new towns and nodes, from a transportation perspective Strategic development frameworks and transportation networks (Transportation and Roads) Road Networks including alignments, intersection spacing and lines of no access Public transport (bus and taxi) systems Heavy and light rail systems BRT Systems Freight Systems Transportation Modeling Tolling Systems Intermodal Interchanges Integrated Transportation Plans (ITPs) Public Transportation Plans (PTPs) Strategic Development Plans (Transportation) Corridor Plans (Transportation Economic Development Projects) Sector Plans (Transportation and Roads)Air Transporation PlansPlanning for new developmentsNon Motorized transportation planning Traffic Engineering Traffic Impact Assessments (TIA) Access studies Road upgrade assessments Internal road layouts Traffic signals and timing plans Congestion monitoring and solutions Traffic data collection and analysis Traffic modeling including micro simulation modeling Parking studies including relaxation applications Traffic safety studies Truck stops feasibility and planning Internal circulation design / checking Road level of service assessment (design input) Non Motorized transport studies Implementation of traffic solutions Development realization (Transportation aspects)Expert witness Project Management Site transportation related upgrades - design and monitoring, specifically with regard to signals, road marking and signage. Out-of-the box solution proposals Financial implications of infastructure proposals Faciliating approval procedures Motivations for contribution offsets Motivation reports for road closure applicationsNotes to counsel for legal casesAssessing claims based on transportation mattersPresenting and defending evidence at hearings / court 11

Infrastructure delivery bargaining power The dearth of energy, The bargaining power of individual African countries to initiatives such as the provision of regional transport, both accelerate infrastructure delivery and insist upon infrastructure to bolster intra-African trade, which it higher levels of localisation, technology transfer and says holds material jobs and growth potential. communications and skills development can only be achieved throughwater infrastructure is “united action”, South Africa’s Public Enterprises “Intra-African trade and investments must grow and Minister Malusi Gigaba told infrastructure investors on we must begin to trust in our own capabilities,” Gigaba viewed as a key Tuesday. averred. But any increase in intra-regional trade would constraint to raising be premised on individual country’s expanding their the levels of growth Gigaba is overseeing State-owned companies such productive capacities and diversifying their as Eskom and Transnet that are spending billions on economies away from a dependency on extractive and development new power and transport infrastructure and which resources. across the continent, have shareholder compacts stipulating that theywhile colonial patterns maximise the employment, industrial and skills The proposed North-South Corridor, which is being development spin-offs from the projects they overseen on behalf of the African Union by President of mine-to-port implement. Jacob Zuma, was held up as a ‘blueprint’ for regional infrastructure integration. He said it would create links from thedevelopment continue Addressing the Africa Infrastructure Conference in resource-rich hinterland to key ports, connect markets to weigh on intra- Johannesburg, he argued that, while “Chinese with a combined population of 200-million people and regional trade pragmatism” had facilitated infrastructure and broader develop the power capacity to establish prospects and investment in a range of African countries, the lack of manufacturing and agroprocessing capabilities at key institutional preconditions for such projects had nodes. undermine resulted in negligible local skills, technology and industrialisation business development. South Afica had institutionalised the programme by including it as a Strategic Integrated Project, known as ambitions. Sip 17, which was being overseen by the Presidential Infrastructure Coordinating Commission. “There are examples where armies of Chinese skills and workers have been shipped in to construct the But African governments also needed to sharpen infrastructure,” Gigaba lamented, while indigenous “intellectual capital” to optimise the acknowledging the ongoing tension between infrastructure development process, as well as to contributing to an African development process and create innovative funding solutions for what was the desire to construct the infrastructure as rapidly as currently estimated as a $93-billion yearly investment possible. deficit. There was, therefore, a need to scrutinise the value of “Infrastructure funding is becoming increasingly more trade, which was increasingly dominated by Asian difficult to acquire,” Gigaba warned, noting that many countries, with China currently representing a third of traditional sources were under pressure in light of the Africa’s trade. “Africans must be cautious of shifting economic crisis, while public budgets were becoming from over-reliance on Western markets to over- more and more strained. reliance on Eastern markets in terms of both trade and investments.” The idea of infrastructure bonds, as well as directing African pension-fund resources towards African Instead, African leaders should seek greater benefits infrastructure projects was again floated. In fact, from the Brazil, Russia, India, China and South Africa, Gigaba indicated that South Africa was currently or Brics, forum and “we must not sell our souls in order exploring various funding models, including the to receive investments from anywhere in the world.” creation of a national infrastructure fund. Through greater unity, Africa would gain more than was the case when individual small countries engaged in an “ugly contest” for investments. In fact, a recently released United Nations Conference A new procurement mind set was also required, on Trade and Development report shows that trade whereby infrastructure was purchased on a life-cycle- between African countries has declined as a share of cost basis, rather than on a product basis. “This the continent’s total trade, despite rising to a record means that we need to ensure that the procurement $130.1-billion in 2011, and remained well below levels includes operational training as well as the being achieved in other territories. establishment of relevant maintenance infrastructure, as well as the localisation of maintenance The ‘Economic Development in Africa Report 2013’ technologies and skills. This is the bare minimum that urged the adoption of ‘developmental regionalism’, is required to ensure that the operations of the encompassing greater cross-border cooperation and infrastructure will be sustainable.”12



South Africa –European Union Summit South Africa’s exports Trade and Industry Minister Dr Rob Davies on will be employment creation, included in this is youth the EU also remained Tuesday said the negotiations regarding the employment…this is a topic we started engaging the Economic Partnership Agreement (EPA) between the EU with last year and we are looking to learn from well below the 2008 European Union (EU) and the African, Caribbean and them to address this challenge,” she stated. levels when the Pacific Group of States (ACP) would be one of the focus points at this year’s South Africa–EU Summit, to Meanwhile, Davies said the aim would also be to country exported be held in Pretoria later this week. convey to EU countries at the summit that Africa wasR186-billion, compared one of the next growth frontiers and that it was “EPA negotiations will surely feature on the summit committing itself to industrialisation that was anchored with R14-billion last agenda and we will discuss with [European] on strengthened regional integration, which was, inyear. However, imports Commissioner [for Trade] Karel de Gucht tomorrow. turn, underpinned by an infrastructure programme. from the EU have “The commissioner has been saying that the “We have seen a strengthening in the EU investment recovered to R239- withdrawal of the provisional market access is relationship with South Africa. Between January 2008 October next year. Last year, the [European] and May 2013, there were a total of 350 foreign direct billion last year, a Parliament said the deadline would be 2016. We investment projects in South Africa by European marked increase from support this rather than 2014, as there are still some companies, with a total capital investment of a matters that we need to solve. R162.4-billiion,” he indicated. R233-billion in 2008. “It [the EPA] would not affect us, but it would affect our Davies highlighted that South Africa’s total trade with neighbours [Botswana, Namibia and Swaziland] and the EU had not reached the levels it achieved we are concerned about the consequences of any immediately before the onset of the global crisis in unilateral withdrawal of market access of developing 2008. The total trade with the EU countries in 2012 countries merely because we cannot meet an artificial was R383-billion, compared with R429-billion in 2008. deadline,” Davies stated. This translated into South Africa’s negative trade Department of Trade and Industry (DTI) international balance growing from a deficit of R47-billion in 2008 to trade and economic development deputy director- a deficit of R95-billion last year. general Xavier Carim pointed out that if the EPA was not finalised by the October 2014 deadline, there “There are a number of factors that underpin this. In a would be significant declines in exports to the EU from number of countries in the EU, there has been Namibia, Botswana and Swaziland, which would hold constrained growth and recession, among others. serious socioeconomic consequences for these Thus, while the EU remains our largest trading partner countries. as a bloc, our exports to them have been impacted by their economic crisis,” the Minister indicated. “October 1, next year, is probably sufficient time to conclude the EPA negotiations, but it is placing a lot of He said South Africa’s aim at the summit would be to pressure on the negotiations. achieve an agreement, apart from the TDCA, that was commercially beneficial “One could see a perverse outcome from this. If we are not able to conclude the negotiations in time for it to enter into force on October 1, next year, we could find a situation where these countries could lose preferential access to the EU, while they would still be providing preferential access to the EU imports through the Trade Development and Cooperation Agreement [TDCA], because Botswana, Swaziland and Namibia are part of the customs union,” Carim said. DTI trade and investment deputy director-general Pumla Ncapayi said the department envisaged an open discussion at the summit to determine how the EU could assist South Africa in furthering the country’s industrialisation objectives. “In addition, one of the key elements during the forum14

P.O.Box 33440 E-mail: [email protected] Reg.No. CK 2004/012167/23Glenstantia0010 www.afro-architectural.co.za Tel: 012 807 6745 Fax: 086 694 5026 Cell: 082 441 4836 Main Office Office @ Nature, Unit B1 500 BotterKlapper Street, Die Wilgers pretoria. (Branch Office) 22 Roodt Street, Sonheuwel Dorp, Nelspruit.

Scaw mulling big cogen project The company is Steel and steel products manufacturer Scaw Metals is All of these investments, some of which are already particularly excited by considering investments collectively valued at R3.4- under way, relate to the value-added products, rather billion over the coming three years, including a than any expansion of primary steel output. Primary prospects arising in possible R1-billion investment into a cogeneration steel still accounts for about 50% of the company’s the South African electricity plant at its Germiston facility, on Gauteng’s sales by volume and is being negatively affected by East Rand. the prevailing downturn in the steel cycle. railways market, with both Transnet and the Acting CEO Markus Hannemann reports that group, Scaw produces grinding media for the mining industry,Passenger Rail Agency which is currently majority owned by the State-owned wire rod and chain for a range of sectors, includingof South Africa making Industrial Development Corporation (IDC), has mining and oil and gas, cast products for railways and sizeable rolling-stock advanced a cogeneration project plan that is able to mining clients and rolled products for the construction generate up to 68 MW. The project can be sector. investments. implemented in phases and the various investment options are being evaluated. Hannemann describes the IDC as being supportive of its expansion ambitions, owing partly to the long-term The facility would be developed to convert waste heat view it is taking of the business and its prospects. But and gases into electricity at Scaw’s Union Junction he also stresses that each project is being analysed on complex, in Ekurhuleni, where it operates Directly its commercial merits rather than any strategic Reduced Iron (DRI) kilns to convert iron-ore. The plant imperatives. will cater for up to 60% of the site’s power demand and Scaw will also seek an arrangement with Eskom Until late last year, Scaw’s main shareholder was to enable it to feed any excess power that may be Anglo American, which sold its 74% interest to the IDC generated at times back into the grid. for R3.4-billion as part of an ongoing restructuring exercise. The balance of the shares are owned by a Hannemann indicates that a number of independent black economic–empowerment consortium power producers have also expressed interest in comprising Izingwe Holdings, Shanduka Resources taking full ownership of the project, but that the group and the Southern Palace Group of Companies, which will make a decision on its approach to the investment hold 21%, and an employee share ownership scheme, in the coming six months. which owns the 5% balance. Meanwhile, Scaw is also weighing up a range of other The IDC has indicated that it stepped in as a majority expansions geared towards servicing the growing shareholder primarily because the business is African mining market, as well as those that could strongly aligned with the IDC’s mandate of promoting supply product into infrastructure projects being the deepening of industrialisation and the pursued by SouthAfrica’s State-owned enterprises. strengthening of the country’s manufacturing abilities. It has also indicated that it will support Scaw, which employs over 7 000 people, to capture a growing share of the opportunities arising from South Africa’s infrastructure programme. It already makes wagon frames for local and export customers, as well as couplers and yokes and producers 5 000 wagon wheels every month. “We have already made some investments to positions ourselves for the opportunities, but are keen for the contracts to be firmed up so that we can align out investments and operations to these large rail projects,” Hannemann concludes.16



Katherine and Westdevelopment takes shape in Sandton. Almost half of the 19 Katherine and West presents a unique R650 million with generous spaces and top of the range finishes to000m2 of sectional title AAA Grade sectional title office development go along with spectacular views and of course theoffices have been sold investment situated corner of Katherine and West ease of access to the Gautrain. This investment Streets in the Sandton CBD. The property is only 50m provides scope for strong capital appreciation. up to a mix of from the Sandton Gautrain Station.professional firms and Katherine and West is developed by Barrow The completed building will consist of 45 office units Properties who are known to have extensive private investors. with 8 floors of offices and 2 floors of exclusive knowledge and experience in the property residential apartments. development and construction industry. Barrow Properties has been responsible for numerous There will be 6 levels of basement parking below sectional title office developments over the last 10 ground that will provide a generous parking ratio of 4 years. bays per 100m² for the offices. The anticipated completion date is November 2013 and the completed These have been very successful and have enabled office and residential units will be sold on sectional investors to benefit from strong capital appreciation. title. Numerous of these purchasers have invested in more than one of the sectional title developments thereby The Katherine and West Development is fast taking building up a portfolio of properties. shape and the slabs of the sixth floor are ready to be cast. The views to the east are phenomenal and one Amongst the better known sectional title can see all the way to OR Tambo International Airport developments are the 5 Fricker Road in Illovo and the on a clear day. The first floor views look over the Melrose Boulevard in Melrose Arch which turned out adjacent Moor Park Complex resulting in superb to be a great success and is now much sought after by views from all levels. prospective purchasers and tenants. The remaining 25 sections are now being marketed ranging from 240m2 to 1 000m2 priced over R30 000 a square. Investors have the option of acquiring entire floors of just over 2 000m2 each by linking adjacent units or linking units over different floors via an internal staircase. This will also include parking, storerooms and a balcony The 7 residential penthouse apartments offer the ultimate in exclusive luxury living MITSUBISHI Melco Elevator (S.A.) (PTY) Ltd. ELECTRIC Changes for the Better Proud to be associated with The Katherine & West Tel: 011 392 3330 Fax: 011 392 3335 P.O. Box 1328, Bramley, Johannesburg, 201818

South Africa -Airbus Military begins A400M deliveriesIt is the year of the A400M,” enthused Airbus Military unable to make contractual schedules. However, he It has allowed us topresident and CEO Domingo Ureña during his believed the decision was premature. He also establish technologiescompany’s 2013 trade media briefing (TMB) at the pointed out that some would have argued that, with such as composite panelend of May. “We’re almost there. The FAL (final South Africa no longer buying the aircraft, he should production in Southassembly line) is no longer empty. Next year, it will be have pulled the work packages out of the country. But Africa with internationalfull, full, full.” he affirmed that he was not unhappy that he had left accreditation. It really major A400M work packages with the South African helped us to establish aFollowing the delivery of the first production A400M companies. “I don’t regret taking the decision to keep state-of-the-artto the first customer, the FrenchAir Force, three more work in SouthAfrica.” compositesproduction aircraft will be delivered this year – two manufacturing capability.more to France and one to the Turkish Air Force. \"We Aerosud produces various structures for the aircraft, It has allowed us tohave a clear roadmap – I will not say to solve 100% of such as the nose fuselage linings, the cargo hold become more visible tothe issues – but our customers will soon start to linings, cockpit linings, the cockpit rigid bulkhead, the other manufacturers,operate the aircraft,” he affirmed. “The A400M is a aircraft galleys and also the wingtips. DAe makes especially in Europe,real breakthrough: it will have 80% . . . 85% . . . 90% major primary structures, namely the wing/fuselage thanks to the link withavailability.” This is a level of avail- ability that will be fairings and the centre fuselage top shells (each Airbus. And Airbus ismuch higher than normal for military aircraft. aircraft has two of these – one each in front of and helping to put us in behind the centre wing box). contact with its supplierThe A400M programme involves seven European base. For the localcore partner countries (Belgium, France, Germany, “Denel was in very deep troubles [in 2009],” he cited. industry and not justLuxemburg, Spain, Turkey and the UK) and one “Denel today is doing fantastically well.” It is doing so ourselves, the A400M hasexport customer (Malaysia). Between them, they well that last month Airbus Military awarded it a third been a very goodcurrently have 174 aircraft on order, comprising 53 work package, worth €15.1-million, for the opportunity and we hopefor Germany, 50 for France, 27 for Spain, 22 for the manufacture of the ribs, spars and ‘sword’ – in other to build on thisUK (which also has three more on option), ten for words, the composites framework – of the vertical tail relationship with them.”Turkey, seven for Belgium, four for Malaysia and one plane.for Luxemburg. DAe is busy keeping pace with the A400M“The A400M is three aircraft in one: a strategic programme. “Production ramp-up is of courseairlifter, a tactical airlifter and even a tanker,” complex, because it has to do with our own and ourhighlighted company head of programmes: light and subcontractor capacity base,” points out DAe deputymedium aircraft and derivatives Rafael Tentor. “The CEO and COO Theo Kleynhans. “We’ve goneA400M is the right aircraft at the right time. The through a very strong capacity mapping process torequirements were really strict and demanding: to fly determine what we need for the ramp-up. Thatat 40 000 ft (nearly 12 200 m) at Mach 0.72 (72% of process has been completed and incorporated intothe speed of sound); at the same time, it must behave our ‘footprint’ plan, which details the production linelike a tactical aircraft and fly at low level. It must fly we need, the ground area it will cover and thelike a turboprop from short and semiprepared equipment we require. As a result, we had to orderairfields. Yet it had to be civil certified, with civilian new capital equipment, including high-end, five-axislevels of noise (for example). This caused some long-bed milling machines and a third autoclave forproblems. But we are there! It is civil certified. It’s a composite panel manufacturing.” The civil works toreal multirole, multipurpose aircraft. And it’s out mount these machines have been finished, and thethere, ready for delivery.” autoclave should arrive this month, with the milling machines coming in October (and commissioning inExpanded Partnership December).With production aircraft starting to come out of the Last year, DAe produced eight shipsets for theFAL, manufacturing is ramping up throughout the A400M – a shipset is a complete set of componentsA400M supply chain, not only across Europe but for one aircraft – this year, it will manufacture 16across the world, including South Africa. Originally, shipsets, rising to 24 next year. The companySouth Africa was a partner country in the expects production to stabilise at 24 to 30 shipsets aprogramme, with an order for eight of the aircraft. As year.a result, Airbus Military placed major work packageswith two South African companies, private-sector “The A400M has been a tremendously importantenterprise Aerosud and State-owned Denel programme for us,” he highlights. “It has establishedAerostructures (DAe). But the country cancelled its advanced manufacturing for serial production, bothorder in November 2009. for engineering, production and logistical processes. It has allowed us to establish technologies such asUreña agreed that South Africa had the right to composite panel production in South Africa withcancel its order because the company has been 19

Anyway, there is the “Denel, with its diverse set of expertise, capabilities reliability testing. But once this was started, the aircraft potential for exports and capacities, is central to Airbus Military’s ambition – the fifth of the development aircraft, designated outside Europe. “We to develop an expanded and multifaceted partnership MSN6 – accumulated 300 flying hours in 26 days, withare in a segment of the with South Africa’s high-tech aerospace and defence only six days of purely routine maintenance required. market where we have industry, tied to South Africa’s military aircraft It flew 16 hours a day, on successive days, withoutno competitors and we requirements and acquisitions,” stated Ureña at the developing any significant airframe or engineforesee no competitors announcement of the third work package for Dae. problems. “This is the first evidence for our customersfor the next ten years,” Aerosud is also ramping up its A400M components that the maturity of the aircraft is already good,” he output. This company is already a well-established affirmed. While the engines have not yet been able to stated Tentor. producer of components for the Airbus group’s civil demonstrate their speci- fied lifetime, this will not be a “Strategic airlifters airliners, including the A320 family, the A330, A340, problem for some years yet, and Europrop is working cannot use unpaved A380 and now the predominantly composite A350 hard on fixing this. XWB. It also produces elements for Boeing airliners airstrips. Tactical (the 737, 747, 767 and 777) and for the Eurofighter Now the focus of the development programme is on transporters cannot Typhoon multi- role fighter. the aircraft’s software. This will be released in six carry outsize loads. iterations over the next five years. The first three “Aerosud has six work packages on the A400M, production aircraft – known to the company as MSN7, This year, we are working with the UK, Germany and France,” explains MSN8 and MSN9 – will have the first itera- tion, known starting negotiations company CEO Dr Paul Potgieter. “The ramp-up phase as IOC (for initial operating capability). This will allow entails significant expansion for the initial batch of these aircraft to operate as strategic transports or civil with a number of production aircraft, involving capital and facility freighters, flying from established air base to possible customers. expansions, manpower expansion (recruiting about established air base. The final A400M to be delivered 60 more people), significant growth in the domestic this year (the MSN10, to France), in December, will We see market subcon- tractor supply base – including some South have the next software iteration, SOC1 (for standard opportunities in Asia, African companies getting Airbus quality approvals operating capability). SOC1 will be followed by this year – and a significant expansion of international SOC1.5, scheduled to be released during the third the Middle East, supply chain volumes. “Although the A400M quarter of next year, and then by SOC2 (the second Australasia and South development programme and the financial impacts half of 2015), SOC2.5 (the second half of 2017) and America. And what of thereof on Aerosud have indeed been painful, with the SOC3 (the second half of 2018). Each release will A400M production now ramping up, the Aerosud increase the operational envelope of theA400M. the US? They have a position is that, having established an equitable and huge gap between the mutually satisfactory agreement with Airbus Military “With SOC1, at the end of this year, we have to [Boeing] C-17 and the on the production of at least the first 40 to 50 A400M demonstrate the tactical capabili- ties of the aircraft,” [Lockheed Martin] C- shipsets, Aerosud is now an established and explained Gautier. “We are doing a lot of campaigns to130J, and they have no committed A400M supplier,” he affirms. “The A400M demon- strate these tactical capabilities. The first real project to fill that. So, programme has undoubtedly brought new skills and milestone is SOC1.5, in which most, although not all, we see an opportunity broadened the experience base inAerosud.” of the tactical capabilities will be demonstrated.” The economic crisis in Europe, with its resultant actual and in the US in the Ureña hopes that South Africa will remember how his threatened defence cuts, does cast a cloud over the medium to long term. company kept faith with its South African suppliers. programme. Germany, for example, has 53 aircraft on Our market forecast is “Now, if the requirement [for a strategic transport for order but has announced that it now only requires 40. to export 400 A400Ms the South African Air Force] re-emerges, I’d like to be Nor is there any clarity – least of all, it seems, in Paris –over the next 30 years. part of that requirement. It wouldn’t be fair if a about how many A400Ms France will actually acquire. company which showed faith in South Africa wasn’t The latest French White Paper on defence states a It’s a conservative involved in resolving the requirement.” need for 50 “tactical transports” but no one knows if estimate. It’s been a this number includes the country’s force of 27 Airbuslong and winding road, Hardware & Software Military CN235s or not. but we are here!” Meanwhile, in Europe, the A400M programme If it includes the CN235s, that would imply a cut in the continues. There are five aircraft involved in the flight A400M order to 23 aircraft. If it does not, it implies no test campaign, and between them they had, by May, cut at all in the A400M purchase. “We can say two racked up more than 5 000 flying hours during 1 700 things about this situation – first, we have a contract, test flights. Last year, some further, but rather minor, and, for the time being, there are no discussions about delays were caused by problems with the aircraft’s any renegotiation of the contract. Second – take the specially developed TP400-D6 turboprop engines example of France – perhaps, they will take [economy] (designed and manu- factured by Europrop measures later on, but they need theA400M now: their International, a joint venture between Rolls-Royce, [current transport aircraft], Transalls, are at the very Snecma, MTU Aero Engines and Industria de Turbo end of their life,” he pointed out. “We think that, if we do Propulsores – better known as ITP). “The issues we have negotiations about cutting some aircraft, it will had with the engines explain why the [2012/2013] not concern the first deliveries and the early years of schedule has not exactly been met,” said A400M deliveries. So, that might be why some customers may programme head Cedric Gautier at the 2013 TMB. “I think that they have some time before having to start have to say now that everything has been fixed. Entry negotiations. We think the short-term, even the into service will be without any limits on the medium- term, programme is protected.” And in the performance of the engines.” long term, there is likely to be economic recovery and perhaps a rescinding of cur- rently planned or The engine glitches delayed the aircraft’s function and pondered cuts.20

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Designing an Affordable Worship SpacePhase one for Orléans’ Bilberry Creek Baptist same system was employed for the expansion and An Ottawa-area churchChurch was completed in 1993, and involved the includes 152-mm (16-in.) wide panels, manufactured has expanded its facilitycreation of a small multipurpose hall that doubled as from 24-gauge steel in cool roof fluoropolymer to accommodate itsthe sanctuary. It included a kitchen and foyer and formulations to decrease heat gain. The proprietary growing congregationwas augmented with portable modular units for roofing system also boasts a finished metal liner with an open interioroffices and classrooms. panel that enhances the contemporary, open using efficient design structure of the ceiling. For energy efficiency, an elements.The church’s growth, in addition to the decision to insulation system with an R-value of 30 was alsoshare its facility with a sister congregation of French- installed.speaking Baptists—the Église Évangélique Baptisted’Orléans—was the impetus for planning the second A beautiful resultphase of building. The 650-m2 (7000-sf) expansionprovides enough space for both congregations to To further tie the expansion to the original structure,meet on Sunday mornings, and encourages new the exterior was given pre-finished wood wall panels.membership in both groups.Design features of the new hall expansion included Since the church needed an audio-visual screen atseating for 400, an expanded foyer, a multi-purpose the front, the clerestory window was used only at theroom and classroom space, and additional parking. rear of the sanctuary, leaving the screen dark enough to read when in use. Auxiliary and accent lightingEconomical, effective design provide illumination when needed.The church chose Kanata, Ont.-based Ralph The focal point and finishing touch for the interior ofVandenberg of Vandenberg & Wildeboer Architects the sanctuary is its simple wooden cross—rescuedto design the expansion, and Ottawa’s design-build from a demolished Canadian Army chapel in Ottawacontractor BBS Construction Ltd,. as the and restored by members of the congregation. Theconstruction manager—they had also been on the second phase was completed in early 2010, withteam for constructing the conventional structure in plans for a third phase currently in development.phase one.The design concept placed the new sanctuary to theright of the original building, with additional elementsbridging the space between. Temporary classrooms(planned to be replaced in a third phase ofconstruction) were kept, with some connected to theexpanded foyer in front and the rest moved to therear of the new 371.6-m2 (4000-sf) sanctuary. Itcomplemented the original building, also featuring aclerestory window along the roof peak.The design for the sanctuary interior was simple butstriking—featuring shaped wallboard backlit byrecessed lighting and bold red and blue accentcolours to contrast with the white walls and ceilings.Systems for the sanctuaryThe design plan provided the church with an openinterior, with no pillars, and a structural system tosupport the clerestory window. The modular framingsystem used acrylic-coated galvanized structuralmembers for durability and reduced maintenance.Previously, the original roof system had beenreplaced on the temporary structures with a low-maintenance architectural standing-seam roof. The 31

Kenyan -road agency seeks legal route for bypass The move follows a A section of Kenya’s Nairobi National Park is likely to only capital city in the world next to a national park.recent judgment by the be degazetted for the construction of a portion of theNational Environmental Ksh17.1 billion ($200 million) Southern Bypass, a key However, in its judgment, NET faulted Nema for road meant to decongest the capital whose issuing a licence when the environment impact Tribunal (NET) that construction has faced stiff opposition from assessment done on the project had stated that therehalted the construction environmentalists. was an imminent threat of encroachment in the park if construction were allowed to continue. of the 4.5-kilometre In its ruling, NET concurred with the East African section of the road. Wildlife Society, the African Network for Animal The Tribunal said Nema ought not to have issued a Welfare and conservationist Paula Kahumbu, that the licence for the whole project given the EIA government failed to observe environmental laws in recommendation. constructing the bypass. The Kenya National Highways Authority (KeNHA), the The NET was established to review administrative agency responsible for development, rehabilitation decisions made by Nema relating to issuance, and maintenance of international trunk roads, said it revocation or denial of licence and conditions of will push for the degazettement of the piece of the park license. to ensure the construction continues. “The construction of the road was not stopped. So long “We will go for degazettement. There was a Cabinet as the law on degazettement is followed, the tribunal memo that was prepared on the same. We will follow has no problem,” added Mr Kidenda. the law,” said KeNHA director general Meshack Kidenda. However, the process will not be that easy as conservationists have vowed to fight any attempts to Tanzania is also facing similar controversy over plans degazette the park. to build a road through northern Serengeti. Scientific studies and leaked government reports say the proposed road would hamper the world famous wildebeest migration across the plains. In May last year, the Kenya Cabinet issued a memo approving the construction of the bypass, which it described as critical for improving the East African region’s long haul transport system. To compensate for the annexed land, the Cabinet had directed that land of a similar size adjacent to the park be acquired for use by the Kenya Wildlife Service. The park hosts lions, buffalo, rhinoceros, giraffe, antelope and many other wild animals. Nairobi is the30

Kenya - Uganda-Rwanda oil pipelineaims to strengthen regional economy \"The first pipeline is Kenya, Uganda and Rwanda agreed on Tuesday The pipeline project is one of several reached by the extension of the (June 25th) to the construction of an oil pipeline Kenya, Uganda and Rwanda. The countries alsocurrent one that brings connecting the three countries in an effort authorities agreed to fast track implementation of the East African say will strengthen regional co-operation and reduce Community (EAC) e-identity card and tourism visa, to oil products from energy costs. enhance electricity generation, and to revamp the Mombasa to Eldoret in railway networks and build a standard gauge railway Kenyan President Uhuru Kenyatta, Rwandan line in Kenya and Uganda that will be extended to Kenya to Kampala President Paul Kagame and Ugandan President Rwanda. (Uganda) and Kigali Yoweri Museveni met in Uganda where they agreed to(Rwanda),\" Kutesa told extend an earlier Kenya-Uganda pipeline construction Kenya will oversee issues of electricity generation and reporters at the State project to Rwanda. distribution as well as oil pipeline development, House in Uganda on Uganda will spearhead the issues of railway Ugandan Foreign Affairs Minister Sam Kutesa read a development and political federation, and Rwanda will Wednesday. \"The joint communiqué from the presidents after the be responsible for the issues of customs, the single pipeline will be tripartite meeting, and said the three countries also tourist visa, and EAC e-identity card. agreed to work on a second pipeline.configured to also have Despite the promises, Kenyan oil tanker drivers a reverse mechanism The second pipeline will be constructed to carry crude received the news of the pipeline construction with so that when we have oil from Kampala to Lamu, Kutesa said. The mixed feelings. our own finished agreement did not give a timetable or cost for the products it can pump construction, however, the Kenya-Uganda pipeline Johnstone Njoroge, a 45-year-old Kenyan tanker those products project was to cost 26 billion Kenyan shillings ($302 operator who transports oil from Mombasa port to backwards.” million). Uganda and Rwanda, said the pipeline threatens the livelihoods of many families who rely on Kenya and Uganda have been jointly seeking a transportation. “I have been in the transport industry contractor to construct the 320-kilometer pipeline, for seven years,\" he said. \"Ten months ago I managed according to outgoing Ministry of Energy Permanent to buy my own tanker that I transport oil with.\" Secretary Patrick Nyoike. The two countries were seeking a new contractor after terminating the \"The Kenya-Uganda-Rwanda pipeline is not good for contract of Tamoil East Africa Limited in September me because if by any chance it is fast tracked and 2012 over delays, he said. completed in under two years, I will not have recouped the money I bought the tanker with,\" he said. The agreement comes at a crucial time when Uganda Mohammed Hussein Abdille, 36, who also owns an oil and Kenya have discovered commercially viable oil tanker, said the pipeline would not affect his business. deposits, he said, and the project will help improve economic ties between the neighboring countries. The pipeline will only do away with long distance transportation, but the opportunities to transport oil \"The pipeline will eradicate the current tanker products within the country remain, he told Sabahi. transportation and subsequently reduce the price of oil for consumers,\" he told Sabahi. Besides improving \"The governments should fast track integration of the transport time, the pipeline will also reduce frequent East African Community because that would allow road accidents involving tankers crossing borders, transporters to freely do business in any of the said Kenya's Cabinet Secretary for East African Affairs countries,\" he said Phyllis Kandie. Currently, the two countries import oil products from the Gulf region through the Indian Ocean to the port of Mombasa where there are refineries. Kandie said the pipeline would not only benefit Uganda, Kenya and Rwanda, but also Tanzania and Burundi. Reduced cost of oil transportation will also bring down production costs and improve the living standards of people in the region, she told Sabahi.24

Kenya -Port and Oil Pipeline ConstructionIn March last year the heads of state of Kenya, South Sudan has productive fields farther north, plus The Lamu pipeline makesEthiopia and South Sudan met among mangroves in access to an adequate pipeline owned by Sudan, its the most economic senseLamu, a Kenyan town on the Indian Ocean, to launch arch-enemy. Again, why pay for a new one? Because for all involved. Butthe construction of a port and oil pipeline together South Sudanese leaders would like to have an failure to work togethercosting $16 billion that would serve all their countries alternative outlet, given northern hostility. Everyone may doom it. National andand vastly enrich them. Taxpayers were billed knows that. But officials are dragging their feet, since personal interests trump$350,000 for the celebratory meal, according to local the north has just agreed to a new transit deal that will regional co-operation andofficials, though it actually cost only $4,000. So far, so run at least until 2016. Separately the South commercial logic. Inprofitable. But little has happened since. Plans to Sudanese are holding talks with the Ethiopians about Uganda Mr Museveni isbuild the pipeline have stalled. The absence of the building a pipeline to Djibouti rather than to Lamu, keen to settle his legacyUgandan president, Yoweri Museveni, at the launch cutting out Kenya. This would cement South Sudan’s as the champion of awas the first clue that all was not well. Uganda friendship with militarily powerful Ethiopia and, so the strong nation, buildingrecently found 3.5 billion barrels of oil by Lake Albert. logic goes, strengthen its position vis-à-vis the north. vast refineries and spitingIt should be part of any pipeline project that links new However, such a pipeline would be still more the tiresome Kenyans.fields in the region. Oil has also been found on the expensive, since it would cross highlands and South Sudan is fixated onother side of the lake, in Congo. And across the swamps and take longer to build. Little advance work warding off the north atborder in Kenya, exploration looks promising; Tullow has been done, in contrast to the Lamu pipeline. the expense—itOil, a London-listed company, says it is pumping 281 seems—of almostbarrels per day (b/d) from a test well. Nearby Ethiopia Uganda, too, has talked up alternative pipeline plans. everything else. Ethiopiais exploring furiously, too. South Sudan, which is Maps handed around in Kampala, the capital, show sees a chance to stealalready producing oil, hopes to find more big fields three potential crude-export routes. In addition to the Kenya’s thunder, too. “It’salong its border with Kenya. line to Lamu, they trace one to Mombasa, farther every guy for himself,” south on the Kenyan coast, and one to Dar es says an oil executiveSo an oil bonanza is in the offing. Revenues could lift Salaam in Tanzania. Both would be for exclusive wryly. “And I thought themillions out of poverty, but only if the oil can find an Ugandan use, since all other known fields are much private sector is rough.”efficient way to market. The local fields are farther north. The southern pipelines would also be Pipeline politics makes aexpensive to tap, say experts. A single pipeline could more expensive than the Lamu option. A line to mockery of the Eastserve them all and would be the cheapest option, Mombasa, one of the world’s most congested ports, African Community, arunning to Lamu via Lokichar in north-west Kenya would have to climb high mountains and require bloc dedicated to regionaland beyond . But the new oil nations cannot agree on heating the oil, to keep it flowing in the high-altitude co-operation. All but onea joint plan. All are obsessed with refining crude at cold; the line to Dar would be extremely long and of the countries arethe expense of exporting it. South Sudan, a country have to cross national parks. All this because members or aspire towithout electricity, is in the process of building not Ugandans hate playing second fiddle to Kenya, the join.one but two small refineries, the first taking 5,000b/d, regional top dog.the second 10,000. “Contracts have been signed,”says an official in Juba, the capital. Ethiopia has even Of late, a new momentum behind the oil push is beinggrander plans, hoping to satisfy the fuel needs of its felt. The Ugandan government is in final production83m people by building a refinery on the South talks with three oil companies. Executives fromSudanese border, absorbing about 100,000b/d. And Tullow, Total and the China National Offshore OilUganda sees itself as a petro-supplier for the entire Corporation (better known as CNOOC), as well asregion. Initially it wanted to refine 180,000b/d but local civil servants, conferred with Mr Museveni at hismay scale back its plan to 30-60,000. Only in Kenya farm near the Rwandan border in late April. In Juneis reason slowly taking hold. Insiders say refinery South Sudan will finish a feasibility study for theplans for Lamu have been downsized. Ethiopian pipeline to Djibouti, after which it has said it will make a decision on export routes. “Everything isBuilding refineries makes no sense for east Africa. It up in the air,” says a diplomat. Kenyan and Ethiopianwould be wasteful and is unlikely to give countries the officials, as well as oil-company representatives,energy security they seek, as some of the fields will have been scurrying to Juba to make their case.run dry quite soon. The economies of scale in refining PaganAmun, who leads South Sudan’s talks with theare vast. Buying fuel from mega-refineries in Asia will north, is said to be keen to ditch the Lamu pipeline.be cheaper for a long time to come, even if it means Planners say it could be built in about three years,losing some of the profits from processing. Even carrying either 400,000 b/d if all countries were onworse, the new oil states of east Africa cannot agree board, or about half that if South Sudan or Ugandaon where to build their pipeline. It is possible that were not. Kenya’s new president, Uhuru Kenyatta, isthree will be built—or none. Leaders in four countries pushing for results. He may be especially keen ininsist on satisfying narrow national goals. Ethiopia is order to deflect attention from his indictment by thein only the early stages of exploration, so why—its International Criminal Court at The Hague. His firstleaders ask—should they pay for a pipeline? The big trip after taking office was to Lamu. None of hisanswer is that other investors, mostly from Japan, counterparts was there to meet him.will cough up: all that is now needed is a commitmentto use the pipeline if oil is found. 25

China -Investment in Ethiopia Mr Meles argues that The release of Ethiopia's best-known political the free market has prisoner, Birtukan Mideksa, seems to have been calculated to distract attention from a reshuffle of thecost Africa decades of ruling Ethiopian People's Revolutionary Democratic development. By Front (EPRDF). The prime minister, Meles Zenawi, has replaced several long-serving ministers withsiding with China, this younger men. He now faces little opposition either will never happen inside or outside the party. Speaking in New York last month, Mr Meles said that Ms Mideksa had begged for again. The Europeans a pardon after only a “few weeks” in prison. In fact, she and Americans find has spent most of the past five years behind bars, on trumped-up charges. She was more or lessthis galling, since they abandoned by Western governments keen to curry continue to pay for favour with Mr Meles. As a final humiliation, the many of Ethiopia's government forced Ms Mideksa, as a condition of her release, to apologise in writing for “deceiving thehospitals and schools, Ethiopian people”.as well as handing out The EPRDF won all but two of the 547 parliamentary free food. But trade seats in a general election in May. So much for its between Ethiopia and promotion of plurality. Government supporters point to China is increasingly wider ethnic diversity within the party, with support said to be growing among the Amharas and Oromos, what matters. It was two ethnic groups. But the security apparatus remains worth $800m in the in the hands of Mr Meles's Tigrayan minority. Mr Melesfirst six months of this has been in power since 1991. Ethiopia has no termyear, up by 27% on last limits, but he says he will step down in 2015. year. Mr Meles's contempt for what he calls the “neoliberalism” of the West is as plain as his admiration for “generous” and “dependable” China. Chinese Communist Party officials were feted at a recent EPRDF conference. Hailemariam Desalegn, the new foreign minister and deputy prime minister, has been conspicuous in urging Ethiopia to follow China's model. China has invested $2.5 billion in Ethiopia, mostly in infrastructure. Mr Meles wants China to take a lead in building a new railway network. He has also promised to use Chinese loans to build a controversial dam on the Omo River in the south. And China has decided to lend Ethiopia $234m so that nine vessels are built in Chinese shipyards for the Ethiopian Shipping Line, which operates out of Djibouti. Mr Meles's ambitious plans to pep up his country of 85m people do not include a stock exchange. Enterprise, skills, and connectivity are years behind neighbouring Kenya. But Mr Meles is shrewd. He hopes Ethiopia's massive trade deficit will narrow as his country's new factories export goods under preferential trade terms. Last year exports to China rose by 140%.26

PetroSA to make from $375m to $510mon LNG import terminal in 2014The project, which has gone through various The feasibility study has settled on a floating LNG South Africa’s national oiliterations over the past few years and was at one facility, comprising a breakwater, a berth structure company PetroSA haspoint shelved, is being pursued to improve gas and a permanently moored floating, storage and re- indicated that it is aimingsupply security for the group’s gas-to-liquids (GTL) gasification unit, or FSRU. to make an investmentrefinery. decision on a $375-million Still being finalised is whether to include a single or a to $510-million liquefiedHowever, the project has been revised to also double berth facility and whether to site the natural gas (LNG) importinclude supply to Eskom, which is keen to convert its infrastructure in Voorbaai, or Vleesbaai – a decision facility near Mossel Bay,Gourikwa open cycle gas turbine peaking power which should be made in the coming few months. in the Western Cape,plant, in Mossel Bay, from diesel to gas and during the fourth quartertransform the facility into a mid-merit electricity plant. The funding model has also not yet been finalised of 2014. apart from the fact that Eskom and PetroSA wouldThe GTL refinery is currently operating at less than each be responsible for procuring their own gas.50% of its 42 000 bl/d nameplate capacity, owing tofeedstock constraints. These will be partly mitigated Energy consultant Galway, of the US, has beenlater this year once gas begins to flow from the FO appointed as the commercial adviser for the sourcingfield, which is being developed as part of PetroSA’s of LNG and an international tender is likely to beIkhwezi offshore development. issued inAugust to solicit suppliers.However, production from the FO field is more Matthysen believes the terminal is likely to beexpensive and technically challenging than the introduced at a time when a number of new suppliersgroup’s previous offshore operations and will also from the US, Australia and Angola begin coming on-only secure feedstock for the GTL refinery until 2020. stream, which could improve the commercial viabilityTherefore, the group is aiming to begin integrating of the facility.LNG imports from 2018 and is advancing with both afeasibility study and front-end engineering design, However, VP operations Dr Thabo Kgogo stresseswhich is being conducted by WorleyParsons. that the integration of LNG could also help in creating the infrastructure and the markets for futureIn parallel, the Council for Scientific and Industrial indigenous gas suppliers, both conventional andResearch is overseeing an environmental-impact unconventional.assessment for the LNG offloading facility, with thefirst round of public consultations having generated Under ideal maritime conditions the facility wouldmore than 600 written comments and objections have a nameplate capacity of 4.6-million tons a year,from stakeholders. but PetroSA is operating on the assumption of a 96% availability rateLNG project manager Carlo Matthysen reports that,while the final location and configuration has notbeen finalized, PetroSA and Eskom’s collectiveyearly gas requirements have been calculated asbeing 1.2-million tons. 27

Tanzania, Kenya Competefor Trade with Landlocked Neighbors Analyst Weru Nairobi — Tanzania is giving Kenya stiff competition “So I think it’s a good move from Tanzania and its going Macharia argues in building trade with their landlocked East African to be advantageous to the Ugandan businessmen butKenya is behaving that neighbors, as business people in the region complain I think Kenya may also follow the same route, So itway because it feels it about deficiencies with Kenya’s port at Mombasa. depends now on how or who is going to be much more has leverage, but with The effort by Tanzania has prompted Kenya’s newly attractive because if you levy the taxes of the day then Tanzania coming on elected president to move quickly in response. you also have to have proper and good infrastructure,” strongly things might said Macharia. Access to the ocean gives Kenya and Tanzania a big change. trade advantage over their neighbors Uganda, Road construction Rwanda, Burundi, Zambia, and the eastern Democratic Republic of Congo (DRC), which all have In an effort to encourage businesses in landlocked to transit goods through the Indian Ocean ports of countries to use roads to transport their goods to the Mombasa, Kenya and Dar es Salaam, Tanzania. sea, the Tanzanian government has finished constructing a new road from Dar es Salaam on the Importers in landlocked countries like Uganda and coast to Mutukula on the border with Uganda. Rwanda have openly spoken about their frustration with the ports and the high cost of transporting goods Kenya's President Uhuru Kenyatta prepares to across regional borders. inspect a guard of honor in Nairobi, April 16, 2013.Kenya's President Uhuru Kenyatta prepares to According to a new report published by the World inspect a guard of honor in Nairobi,April 16, 2013. Bank, Tanzania and Kenya could boost their annual Last month, newly-elected Kenyan President Uhuru gross domestic product by up to $1.8 billion and $830 Kenyatta reacted by visiting Uganda and Burundi to million respectively by taking measures to improve the convince their leaders his country is also ready to efficiency of the ports. improve its port and make other offers to encourage trade. In recent months Tanzania has worked especially hard to improve its game in the competition for the regional Everest Kayondo of the Kampala City Traders said import market. each country will act in its own self-interest. “Kenya, they will accept a policy as long as it favors them but Everest Kayondo, head of Kampala City Traders the moment it’s not conducive to their business Association, said Tanzania is offering enticing community they will sort of block it,” said Kayondo. incentives to Ugandan businesses, including tax breaks for goods transported by road. “The complaints may be valid, but you don’t expect any country to be humanitarian in terms of trade and “It [Tanzania] has come up with some attractive commerce. So its upon them to see Tanzania coming measures like not asking bonds for our goods if they in and there may be more at stake for Kenya, which are ferried by train, so they are saying it will do it as if might probably be more flexible in terms of dealing it’s a domestic cargo,” said Kayondo. with Ugandan businessmen,” said Macharia. However, Weru Macharia, an independent foreign In May, the World Trade Organization (WTO) director- relations analyst in Nairobi, said the Tanzanian tax general, on his visit to the region, said East African incentives will be useless if the country does not governments must improve their roads, ports and improve its road system. trade procedures if the region is to reach its full economic potential.28



Kenyan -road agency seeks legal route for bypass The move follows a A section of Kenya’s Nairobi National Park is likely to only capital city in the world next to a national park.recent judgment by the be degazetted for the construction of a portion of theNational Environmental Ksh17.1 billion ($200 million) Southern Bypass, a key However, in its judgment, NET faulted Nema for road meant to decongest the capital whose issuing a licence when the environment impact Tribunal (NET) that construction has faced stiff opposition from assessment done on the project had stated that therehalted the construction environmentalists. was an imminent threat of encroachment in the park if construction were allowed to continue. of the 4.5-kilometre In its ruling, NET concurred with the East African section of the road. Wildlife Society, the African Network for Animal The Tribunal said Nema ought not to have issued a Welfare and conservationist Paula Kahumbu, that the licence for the whole project given the EIA government failed to observe environmental laws in recommendation. constructing the bypass. The Kenya National Highways Authority (KeNHA), the The NET was established to review administrative agency responsible for development, rehabilitation decisions made by Nema relating to issuance, and maintenance of international trunk roads, said it revocation or denial of licence and conditions of will push for the degazettement of the piece of the park license. to ensure the construction continues. “The construction of the road was not stopped. So long “We will go for degazettement. There was a Cabinet as the law on degazettement is followed, the tribunal memo that was prepared on the same. We will follow has no problem,” added Mr Kidenda. the law,” said KeNHA director general Meshack Kidenda. However, the process will not be that easy as conservationists have vowed to fight any attempts to Tanzania is also facing similar controversy over plans degazette the park. to build a road through northern Serengeti. Scientific studies and leaked government reports say the proposed road would hamper the world famous wildebeest migration across the plains. In May last year, the Kenya Cabinet issued a memo approving the construction of the bypass, which it described as critical for improving the East African region’s long haul transport system. To compensate for the annexed land, the Cabinet had directed that land of a similar size adjacent to the park be acquired for use by the Kenya Wildlife Service. The park hosts lions, buffalo, rhinoceros, giraffe, antelope and many other wild animals. Nairobi is the30

Designing an Affordable Worship SpacePhase one for Orléans’ Bilberry Creek Baptist same system was employed for the expansion and An Ottawa-area churchChurch was completed in 1993, and involved the includes 152-mm (16-in.) wide panels, manufactured has expanded its facilitycreation of a small multipurpose hall that doubled as from 24-gauge steel in cool roof fluoropolymer to accommodate itsthe sanctuary. It included a kitchen and foyer and formulations to decrease heat gain. The proprietary growing congregationwas augmented with portable modular units for roofing system also boasts a finished metal liner with an open interioroffices and classrooms. panel that enhances the contemporary, open using efficient design structure of the ceiling. For energy efficiency, an elements.The church’s growth, in addition to the decision to insulation system with an R-value of 30 was alsoshare its facility with a sister congregation of French- installed.speaking Baptists—the Église Évangélique Baptisted’Orléans—was the impetus for planning the second A beautiful resultphase of building. The 650-m2 (7000-sf) expansionprovides enough space for both congregations to To further tie the expansion to the original structure,meet on Sunday mornings, and encourages new the exterior was given pre-finished wood wall panels.membership in both groups.Design features of the new hall expansion included Since the church needed an audio-visual screen atseating for 400, an expanded foyer, a multi-purpose the front, the clerestory window was used only at theroom and classroom space, and additional parking. rear of the sanctuary, leaving the screen dark enough to read when in use. Auxiliary and accent lightingEconomical, effective design provide illumination when needed.The church chose Kanata, Ont.-based Ralph The focal point and finishing touch for the interior ofVandenberg of Vandenberg & Wildeboer Architects the sanctuary is its simple wooden cross—rescuedto design the expansion, and Ottawa’s design-build from a demolished Canadian Army chapel in Ottawacontractor BBS Construction Ltd,. as the and restored by members of the congregation. Theconstruction manager—they had also been on the second phase was completed in early 2010, withteam for constructing the conventional structure in plans for a third phase currently in development.phase one.The design concept placed the new sanctuary to theright of the original building, with additional elementsbridging the space between. Temporary classrooms(planned to be replaced in a third phase ofconstruction) were kept, with some connected to theexpanded foyer in front and the rest moved to therear of the new 371.6-m2 (4000-sf) sanctuary. Itcomplemented the original building, also featuring aclerestory window along the roof peak.The design for the sanctuary interior was simple butstriking—featuring shaped wallboard backlit byrecessed lighting and bold red and blue accentcolours to contrast with the white walls and ceilings.Systems for the sanctuaryThe design plan provided the church with an openinterior, with no pillars, and a structural system tosupport the clerestory window. The modular framingsystem used acrylic-coated galvanized structuralmembers for durability and reduced maintenance.Previously, the original roof system had beenreplaced on the temporary structures with a low-maintenance architectural standing-seam roof. The 31

Chilliwack centre boastsCanada’s largest tilt-up panelsThe Chilliwack Cultural The 4478-m2 (48,200-sf) design-build was completedCentre was a fast-track by Kasian Architecture Interior Design and Planning project that employed Ltd., in conjunction with Bird Construction and the Citythe tallest tilt-up panel of Chilliwack, over a period of 26 months. The $22-assembly ever seen in million project was completed in 2010 in an area populated with other sporting and recreational Canada. facilities. The structure includes a fly tower meant to reflect the A double-height linear glazed lobby allows for local mountain range, specifically Mt. Cheam. For the daylighting and views of the surrounding landscapes. fly tower’s construction, 25 massive tilt-up concrete The various entry points to the lobby are equipped with panels reaching 25 m (82 ft) in height, and averaging wooden glued-laminated timber (glulam) canopies 45,359 kg (100,000 lb), were erected. The panels and permit flexibility in the centre’s use. For example, were assembled in a one day with fixed and mobile the access point at the south end serves the studio cranes putting them into place before being welded to theatre, while the north entrance point allows for the building’s steel structure. This set a Canadian access to the main theatre and art gallery. Additionally, construction record as the largest tilt-up panels ever some of the concrete walls have punched windows for installed. In addition to these 25 record-setting panels, natural light and views smaller tilt-up assemblies were used throughout the remainder of the facility’s construction. By incorporating the tilt-up concrete, a functional and acoustically appropriate structural form was created, satisfying the city’s design desires. Operationally, the tilt-up panels will also provide a durable building that will require minimal maintenance. Tilt up In total, 25 massive tilt-up concrete panels reaching 25 m (82 ft) in height, and averaging 45,359 kg (100,000 lb), were erected. In addition to the concrete panels, the centre comprises materials such as metal cladding, glass, and wood. It includes: 560 seat performance theatre; 150 seat recital hall/rehearsal and meeting space; art gallery; music instruction rooms; arts and crafts studios; administrative offices; and storage and archival space. The interior spaces boast exposed structural and suspended ceilings for acoustical properties. The mechanical equipment on the structure’s roof is situated to minimize visibility from the street, and also avoid potential acoustical problems. The interior acoustics in the main theatre are enhanced for concerts, choir recitals, and drama performances with high-level curved acoustic panels and operable absorptive banners and drapes.32

Bianco Construction Supplies -Everything for the BuilderThis network of area managers and van sales install portable buildings and facilities throughout The catalogue of therepresentatives service construction, industrial, South Australia in accordance with OH&S thousands (possiblymining and Government utilities across Adelaide, requirements, and Bianco Hire has recently added millions!) of itemsthroughout South Australia and into the Northern temporary fencing hire to its product range. available can be viewedTerritory. online and Bianco For the construction industry, Bianco Construction promises that a completeThe company remains a family concern even now Supplies offers a comprehensive product range online ordering system isthat it has grown so big, having come a long, long including steel, lintels and fabrication, wet trade coming soon to itsway since the days of the Adelaide bricklaying materials and products, specialised concrete and website for even fasterbusiness established by Nick Bianco in 1970. He repair products, drainage solutions, quality trade and more convenientbranched out into Bianco Hiring Services, which in tools, general building products and formwork shopping. Biancodue course evolved into Bianco Builders Supplies, timbers and accessories. Bianco Construction Construction Suppliesspecialising in selling building and machinery Supplies backs this up with professional technical prides itself on being ableproducts to the construction industry. Bianco advice to ensure correct products are selected, along to give the same highReinforcing was established in 1998, manufacturing with an efficient delivery service. level of service to all itsquality steel reinforcing from its Gepps Cross facility, customers, whether theyand has become South Australia’s largest The group is set up to act as a single source of be tier one contractors ormanufacturer of steel reinforcing for the domestic, workplace supplies and has chosen its various a local concretor orcommercial, civil and mining industries, with an product ranges to reflect this one-stop shop carpenter. Going onlineimpressive track record on a variety of high-profile approach, selecting both the best quality and best will prove to be anjobs, including: Adelaide Airport, SA Water, the value in products from local and international expansion of this serviceBolivar Waste Water Treatment Plant, IKEA, the sources. This gives customers choice and access to ethic and speed up theUniversity of Adelaide Engineering Building, QEH thousands of workplace essentials, recognised delivery process –Building, the Adelaide Entertainment Centre and the brands and unique services consisting of especially for big or smallPort River Expressway. In 2004, Bianco Safety was construction equipment, building supplies, safety customers who needestablished and this entity merged with Bianco supplies, steel reinforcing, portable building hire and quality products in aMachinery to form Bianco Construction & Safety on-site service. hurry!Equipment. Among the many ranges (the company catalogueNick’s son Russell took over the reins in 2011 and runs to more than 70 pages) available to helpsince then the group has taken a number of steps builders, Hebel is extremely versatile and is availableforward to reflect the changing market and the ever- in blocks and panels of various sizes and widths for aincreasing demands of customers throughout the broad range of load bearing and non load-bearingconstruction and resources industries. Based in construction applications including external walls,Newton, Adelaide (with a second outlet at Mount internal walls, floors, fences and sound barriers.Barker, the retail hub of the Adelaide Hills), the Hebel has varied applications across all segments ofcompany has a store at Roxby Downs, a mining town the Australian building trade. Another system whichsome 600km west of the SA state capital, and is promised for the near future is the Exsulite Thermalanother store up in Darwin which is experiencing Facade System by Dulux AcraTex, which is aimed atstrong growth in line with the substantial bridging the gap between substrate and finishinginfrastructure and resource projects going on systems, thus offering a fully integrated claddingthroughout the Territory. solution from a single supplier.Roxby Downs has been servicing miners andcontractors since opening in March 2009. Bianco’smining division, which specialises in the provision ofproducts and services to the mining sector, pridesitself on high levels of service and expertise andboasts both full time and part time local employees.The company has recently acquired property forexpansion of its warehouse and storage space.Bianco Hire is a major supplier of portable buildingsto the domestic, commercial, civil and miningindustries for both hire and purchase. There is a widerange of products available, suitable for mostapplications including construction sites,manufacturing facilities, mining, special events andwherever additional facilities are required. Welltrained staff and contractors are able to deliver and 33

Australia -Beyond the Pale This Victorian fencing A family business when it started in 1948 and people realise because fencing panels are not exactly specialist company remaining privately owned, Lee Brothers is heavily treated with great respect on site and when they are has been supplying involved in infrastructure work. “We go after any returned after hire they can be subject to extra commercial fencing prominent jobs in the state. A few years ago there was charges. “No one has any respect for temporary a focus on railway sidings and we were engaged on fencing,” says Andrew. “If someone hires a generatorand related equipment just about every siding in Melbourne when they and breaks it they know they will get charged for it. But throughout the state ordered new trains. That was a security mesh. We did if they drive a truck across a temporary fence panel the desalination plant, and the Peninsular Link road and damage it, too often they think that is my problem.”for more than 60 years extension that required 20 kilometres of chain wire.” and, as Director That three-year project finished at the end of 2012 and Victorian Temporary Fencing has supplied temporary was, for the time being, the last major roads project in fencing for various football clubs for the seasons’Andrew Lee told us, “If the state. Lee Brothers is also pitching for a slice of the finals, supplying fencing to the Western Regionit is related to fencing, $4.5 billion dollar railways revitalisation project Juniors, Northern Football League Juniors and the currently in preparation – the biggest rail project in Western Region Football League Juniors. At these gates or access to Victoria. In fact, Lee Brothers turns out to be two events the industrial style event fencing was used property, we do it.” companies rather than one, with a separate division around the grounds as security boundary fencing. looking after temporary fencing. Victorian Temporary Victorian Temporary Fencing was also the first on the Fencing was established in 1996, also owned by job for the development of Hume City Council’s Andrew and his brother, and provides temporary Craigieburn Town Centre. The development required fencing solutions for any pool, event, construction or 2,250 metres of exterior chain mesh temporary site need. This side of the business is, says Andrew, fencing panels to secure the perimeter for building to “extremely competitive at present,” with more than a commence on the 65 hectare site. The Town Centre hundred companies in Melbourne alone claiming to will become a hub for entertainment, shopping and supply products. However, he sounds a warning outdoor public spaces, and completion of this project based on his own experience and observation: hardly is expected prior to Christmas 2013. ten per cent of those ‘suppliers’ actually have “a product that meets the Australian Standard.” The The company has taken advantage of the relatively remainder are just erectors and stockists, short on quiet segment to put a lot of investment into the future public liability and quality assurance. He even with “a massive amount of changes to turn it into a suggests that it’s more the companies than their much better business when things turn round” and fencing that are ‘temporary’. take advantage of its leading position. Andrew paints a rather brighter picture of the situation across at Lee In a difficult economic climate, he argues, it is tempting Brothers Fencing itself. “This has been quite a good for even reputable companies to take a look at the cut- year for us because we have won some good projects. price offers from such operators and many do, often We get involved in anything related to infrastructure or regretting the experience after something goes wrong. construction. So for example on a multi-storey building Smaller companies (and a lot of temporary fencing is project, we will start with a builder’s hoarding and used in the domestic sphere where councils require it continue to storage cages, following through the to restrain rubbish on building sites and stop it project with accessories such as bollards. We can spreading on new estates) are often very handle all the external fencing and handrail work – indiscriminate in their buying, in the mistaken belief anything but metalwork as such which is something that temporary fencing is just a commodity to be our business is often confused with.” A piece of piping bought at the cheapest price. “Everyone has a that is galvanised can be called fencing or metalwork, different size of mesh or pipe, so the requirements are and both sectors tend to try to claim it. “We also do performance based,” explains Andrew – meaning a acoustic fencing, including work on freeways, mostly fence has to be able to keep a set of objects in or out – small to medium acoustic fences between private “and if you read the standard, although not many do, it residences on an estate and a VicRoads project,” says says staff need to be trained properly in installing the Andrew. Much of the work in this sector comes from fencing. Every site is different.” private developers, working with acoustic consultants and the engineers to sort an optimum solution to any Enforcement is unfortunately lax, suggests Andrew, particular noise problem. who is heavily involved in both the Australian Wire Industry Association, the body that oversees chain link A typical rail project was the company’s South Morang fencing production and supply, and the Temporary Rail Extension, a premium station, built to improve Fence Association of Australia. “We try to promote use access to public transport services for Melbourne’s of a fencing company within the Association, whose northern suburbs. Lee Brothers installed more than six products have to meet the Australian Standard. We kilometres of fencing at the site, including chain link won’t let them be members if they don’t.” But in light of fencing, timber farm fencing, weldmesh fencing, a lack of enforcement by authorities, it remains too customised garden mesh panels, Monowill hand rail, tempting for many companies, who can simply buy anti-dig concrete barrier and security 358 mesh. cheap fencing panels from China with little or no supervision. Quality is more important than many34

Australia -Global Projects - A Solution for Every Client“At Global Projects, we focus on developing long- design; cost planning; initial cost assessment; Within this field, Globalterm, cost effective solutions for our clients. We appointment and briefing of a design team; continual Projects excels across abelieve in consistently providing added value to our design analysis and cost control; food and beverage wide variety of projectclients’ projects through clear, strategic project works planning; in-house cost management; council types, whether newmanagement solutions. Your expertise lies in documentation and approval; tender negotiation; construction,managing your business; ours lies in successfully co- contract management; program timing including refurbishment, alterationsordinating and managing your project. As each client critical stages; construction implementation; and or additions. In additionhas different issues, we tailor our expertise to your project management. to the hospitality sector,specific needs to give you the best possible Global Projects alsoconstruction outcome.” Steve Brown, one of Global “All our construction projects are managed with strives to offer expertProjects’ three Managers, discussed with us what focused attention to fine detail, ensuring your project management across asets the New South Wales-based construction and is created on time, within budget, to the highest variety of projects inproject management company apart within the field, quality standards and meets your vision,” says Mr other sectors includingsumming it up in one short but powerful statement: Brown. “One of our Directors will personally manage commercial, residential“It’s pretty simple,” he says, “you take care of your your project, ensuring that you gain the highest level and retail.clients and they take care of you.” of strategic advice, both in project and construction management.” In particular, the company aims toIndeed, throughout the company’s wide array of minimise construction-related impedances tocustomer-centred services, simplicity and operational businesses whilst creating new orrelationships stand out as the two core themes to revitalised environments for its clients’ own patrons.lasting success within the demanding luxury To achieve such a result, Global Projects designs itsindustry. “We don’t do a lot of advertising because we construction project management programs with therely so strongly on the word-of-mouth,” Mr Brown client’s bottom line in mind during eachcontinues. “All of our work comes from within the refurbishment or upgrade.industry – from relationships we have built anddeveloped which have stood the test of time. We had “We understand that you may often require on sitea background in the industry, so this path was chosen construction work while still maintaining fullwith respect to that and the clients we had already operation of your business,” says Mr Brown. “Wedeveloped relationships which stuck.” “All of us – have extensive experience in planning constructionthere are three Directors – come from a construction so that respective designated areas remainbackground,” he says. “So we have a very flat operational, yet also safe for those working nearby.”structure to management where we are more likeProject Managers than typical Directors. We develop In addition to this considerate approach, Globalvery strong relationships with our clients, working Projects comes to the table with the necessary skillsdirectly with them on a day to day basis. This results and experience to implement high quality designs toin better efficiency for us and a higher quality of end- exacting standards for both front of house and backresult and experience throughout the project for the of house operations – from laying out a bar andcustomer. maximising the efficiency of a kitchen to designing communal spaces that create the “wow” factor. At the“Our three Directors have an unequalled passion and same time, facing the rising costs and increasingextensive combined knowledge of hospitality, from financial pressures now prevalent in commercialfront of house to back of house operations. We have construction, Global Projects has become proactivenumerous, long term client associations with major in assisting its customers to achieve their desiredleagues clubs, RSLs, restaurants and other results without increasing their budgets by offeringentertainment venues.” In addition to its dedicated constant reviews for construction alternatives viasupport staff and Management team, Global Projects detailed costing analysis.works collaboratively with its preferred sub-contractors, chosen on the basis of trust, honestyand respect, and has been recognised in the industryfor the quality results that have come out of theserelationships. “Our awards are in relation to thedesigners we have chosen,” shares Mr Brown. “Thatdoes speak to the calibre of contractors, sub-contractors, designers and consultants with whomwe work.” The company particularly prides itself onits spectacular attention to detail and high levelexpertise. “Hospitality is our passion,” asserts MrBrown, and to this end, Global Projects maintains apersonal relationship with its customers throughoutprojects encompassing all aspects of design andconstruction including: strategic planning and pre- 35



Australia -Perth Airport - Ready for TakeoffInitially government owned, Perth Airport was the largest of the construction projects in terms of With this symbolic impactprivatised in 1997 and was purchased by Perth scale, and is also the most complex, being built on an in mind, Perth Airport PtyAirport Pty Ltd under a 99-year lease from the operational airfield. “The construction is not a Ltd is in the midst ofCommonwealth. It encompasses 2,105 hectares of constraint but it causes you to rethink how we use completing a $750 millionwhich 1,100 hectares are for aeronautical existing infrastructure, and certainly puts a focus on redevelopment of thedevelopment, more than 300 hectares are set aside it,” Ms Lander says. “It’s like directing traffic in rush city’s airport. Thefor permanent conservation and 700 hectares are for hour when one of your lanes is out.” With this project endeavour is currently onother uses. Recently a new terminal was come enormous complexities and risks that need to budget and on timeconstructed, the first to be built in 26 years. Once a be managed. “We have had to reconsider our bay despite numeroussmall airport, with the significant population growth allocation so that we maximise the use of the gates challenges. Fiona Lander,and an increase in Fly-In Fly-Out (FIFO) traffic and bays that we have whilst we had to take one out Executive Generalassociated with the resource sector’s workforce of service to enable the construction of the Pier.” Manager Corporatedeployment model, it is now Australia’s fourth largest Affairs for the airport,airport. Approximately 14 million passengers pass Because of the large number of aircraft servicing the shared her thoughts andthrough the terminals every year, which has doubled regional resource sector, Perth Airport has up to 166 insights about theover the last seven years. aircraft parked overnight. That is more than you project, the city of Perth would find at either the Melbourne or Sydney and the future of thisTerminal 2 is the newest addition that has been built airports, and yet both eastern cities have much great facility.with the resource sector specifically in mind. It higher passenger numbers. Given the need for soservices regional/intrastate flights and has been many planes to service the mining industry, newdesigned as a single level terminal with extensive aircraft parking bays have had to be added to thewalkways out onto the airfield – covered to protect airport’s infrastructure every month for the past sixpassengers from the elements. “This allows us to years. The demand for parking bays has been sohave a greater number of parking bays, and the overwhelming that the airfield investment programdesign maximises the turnaround and efficiency of has been continual. A lot of money has been injectedaircraft because they have quite a short turnaround into ensuring the airfield can work to its maximumperiod, particularly for the resource sector flights,” capacity.Ms Lander notes. The new terminal was opened on2nd March, and the team estimates that 1.3 million The airfield isn’t the only infrastructure that is gettingpassengers will be processed through it each year. an upgrade. ‘Gateway WA’ is a billion dollar state and federally funded project to re-orient and re-alignThe customer experience in Terminal 2 was based many of the roads leading to the airport and gradeon the demographics of its passengers, with the retail separate them so that congestion is less of an issue.and refreshment strategy specifically designed “Ultimately we are consolidating all of ouraround the needs of FIFO passengers. The clientele commercial air services over to the (current)connected to the mining sector tends to be a male international precinct, so everything will move acrossdominated population, and as Ms Lander explains, to where Terminals 1 and 2 are,” explains Ms Lander.“they don’t have a lot of time. They arrive, buy a quick “What Gateway WA does is provide an entry pointcoffee or drink, a newspaper and board the aircraft.” into the airport that will cope with the amount of passengers and visitors that we are projecting wellThe company has also sought to improve service for into the future.”tourists. As Ms Lander states, “We have alsoexpanded our volunteer program called the GoldCoats into Terminal 2. This is mainly to assist thosepassengers who are not frequent travellers and whoare travelling for leisure. The volunteers are alwaysthere to provide assistance and guidance to visitors.”The new terminal also has a drop-off-and-pick-uploop at the front of the building with a 30 metrestandoff at the front for security purposes. The newterminal has also made way for a more recreationalexperience; for example, “we have a really lovelyexpansive forecourt which will be maximised for thesummer months, incorporating entertainment. Thisway, we will make Perth Airport a destination fortravellers and visitors, wanting to come to the airportto enjoy a coffee or meal.“We have experienced a period of significantgrowth,” Ms Lander explains. The Domestic Pier is 37

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Australia -Embelton - Sustainable BaseTake timber, for example. It is always in fashion, in strong, traditionally and even today used throughout At Embelton, there is nointerior design and in many structural applications. Asia as scaffolding in lieu of steel poles even on such reticence. ForIt’s stylish and effective. But then, it’s all too easy to multi-storey building projects. decades this all-assume that because the rainforests are being Australian company haschopped down, we should not be using wood Embelton Bamboo is also GECA-certified. Good been producing high-anymore or we will run out of oxygen. Of course that Environmental Choice Australia (GECA) is an quality timber floorings,is nonsense, but sometimes you are led to wonder independent, not-for-profit organisation. By ensuring backed up by an expertjust what is good and what is bad. Especially in that products which carry the GECA certification noise and vibrationAustralia, where we all know that hardwoods are meet stringent environmental requirements, their isolation division, and for“under threat”, it is sometimes difficult to know what is mission is to transform the actions of business and Managing Director Jamesthe right thing to do. consumers to drive a substantial increase in the Embelton, the argument sustainability of consumption. is simple: timber remainsIf you were to make your product out of, say, plastic, a Good Idea. He is awarethe impact on the environment would be much Currently, bamboo is the most popular choice in that public perceptionsgreater than if you used timber, for two key reasons, Australia for hard flooring. “It is compared to timber are increasingly confusedsays James. “First, the manufacturing process in flooring, obviously, although it is a grass. It is the in the welter of argumentmaking something out of plastic creates much more largest proportion of Embelton’s flooring sales for and against forestry,carbon in the atmosphere than making it from timber. because it is perceived as a sustainable choice and sustainability and carbonSecondly, timber is a store of carbon – if you use it, also because it is relatively inexpensive compared to sequestration, so that, foryou are extracting that amount of carbon from the other ‘timber’ options. It is also a very attractive many builders and theirenvironment – permanently.” Timber can be not only product and extremely hard-wearing.” clients, the desirability ofsustainable, but beneficial in two ways – both a smart and durablecausing less damage in its production and ingesting Major drivers in flooring, of course, remain fashion wooden floor or othercarbon dioxide which the tree exchanges for oxygen. and price. Solid timber flooring is expensive and surface is clouded by tends to be installed before finishing, so after laying concern that it might beThere is currently discussion at government level the floor there is a sanding process followed by harmful to ourabout legislation against illegal logging that would sealing. This takes several days; the overall process, environment. But, hemean anyone manufacturing from timber or selling says James, can cost around $200 per square metre. says, “Timber is antimber products will need to show some kind of proof One of Embelton’s engineered timber floors will cost inexpensive optionof the origin of the wood. “We, and all other producers probably half that price “and you can have it laid and compared to steel orof timber products, will need to show where the walk on it the same day.” Solid planks are no longer other building materialtimber has come from with a view to proving that the necessary, because hardly any new building today products. People thinktimber has been sustainably sourced,” James features traditional joists (and laying solid timber on timber is not sustainableexplains. He is of the opinion that forestry has been concrete is an extremely difficult and expensive or eco-friendly, but it is.”managed far better in Australia over the last 200 exercise to do well).years than in most other countries, especially interms of renewing the stock, and that the proportion Engineered timber floors have come a long way inof native forest eligible for felling across the nation is the last 20 years, James explains, to the extent thatvery small, on the order of five to seven per cent of they can look at least as good as – and often betterthe total. For these reasons, the industry should hold than – solid timber. The top layer can be anywhereits head high and the public should be able to relax from half a millimetre thick to five or six millimetres,and enjoy the range of finishes available. with a substrate typically made from inexpensive plantation timber.A substantial proportion of Embleton’s flooring todaycomes from bamboo, which is extremely hard-wearing and capable of being finished to anexceptional aesthetically pleasing appearance.Bamboo is one of the fastest growing trees in theworld (actually, it is not a tree at all but a species ofgrass), and can be harvested for flooring every sixyears or so, making it much more sustainable andmuch more swiftly renewable than timber. Embeltonsources nearly all of its bamboo from China and hasan exclusive distribution arrangement with one of theworld’s leading bamboo flooring manufacturers, whoown their own bamboo forest, allowing better controlof the raw material and more consistent quality andappearance. The bamboo itself comes from one ofthe colder parts of China, and is exposed tosignificant climatic variations, making it stronger thanother bamboo flooring; mature bamboo is immensely 39

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Australia -Ace Body Corporate ManagementOnce a developer has sold on their shares in the Corporate.” Acts and Regulations are entirely “It’s as complex asbuilding, the onus passes to the Owners’ Corporation different across the states; it’s the railways all over medicine or law.”that becomes responsible for any trips, slips, falls or again. explains Stephen.other hazards. “Any workers that attend the site are “Because of the hugeeffectively the same as employees of the Owners’ Stephen set up Ace in 1995 after leaving a high- amount of potentialCorporation and therefore have to be treated as powered but highly politicised corporate position. He liability – just takesuch.” quickly learned that the entire business of managing occupational health and a property – whether it be large or small, high or low safety and essentialStephen thinks that this profession needs to be rise, commercial or residential – is fraught with services, for example.”regarded as a profession and he and Strata conflict. Conflict resolution, creating a community Developers generallyCommunity Australia (the national representative and having an enormous amount of required have a dangerously lowbody) have been pressing government for a licensing knowledge is what Strata Title and Body Corporate awareness of thesystem for some time; whilst waiting for a response, Management are all about. The role involves responsibilities involved.they have instituted their own voluntary qualification approximately 25 per cent law, 25 per cent For example, the tiling onprogramme. There are a lot of conflict and disputes accounting, 25 per cent facility management and 25 floors, the handrails onbetween developers and owners or between one per cent psychology. Because of the constant stress stairs, all need to conformowner and another, or even between owners and of being in the middle and the constant demands to workplace OH&Stenants or managers. Unlike other companies, we placed on the manager, those engaged in it the standards because even atrain all our franchisees on how to mediate and deal industry tend to move on frequently. residential block is awith conflict resolution.” Understanding people, with workplace if workers aredifferent educational, cultural or economic Knowing from personal experience the importance of called in for maintenancebackgrounds is vital because they all make demands good customer relations and handling, Stephen or repair.that often cannot be met by law. Ace franchisees are sought a better way of doing it. He came up with atrained not to rely on legal recourse or waving the big franchise model that has since become extremelystick, but instead on building relationships of trust successful, with 95 franchised areas nationwide,between the various parties to defuse conflicts. each managed by a trained franchisee who is typically professionally qualified. Many of them comeAce managers can in most cases generally advise from a career background such as accounting,and clarify whether a party has transgressed a legal engineering or law. These people are often lookingboundary and may empower those involved with the for a career that gives them more personal freedomknowledge required to make the right steps in the whilst still exercising some of their skill. This type ofresolution process. “It is not recommended to go it ‘white-collar’ franchising is in fact quite rare. Ace hasalone in the resolution of a complicated dispute that over 50,000 units under management and isposes serious consequences,” advises Stephen. responsible for the management of properties and“Without the right knowledge and mediation, the assets to an approximate value of $13 billion.consequences can escalate.”Indeed, there is always some sort of problem with an The growth of Ace has seen it become the thirdOwners’ Corporation – that’s just the nature of the largest management company of its kind in Australia,job. Pets, noise, food smells, parking spaces – not to Ace has spread its wings as far as Singapore, wheremention the all-too-frequent occurrence of defects ‘community living’ (especially high-rise apartmentsthat show up in newer buildings around about the and condominiums) is the norm, and is lookingtime that the developer is winding up construction; further afield still in Canada, Hong Kong and –Stephen has horror stories galore. “Sometimes the imminently – New Zealand.developer will not fix those defects,” he says.Unfortunately on some occasions they just cut andrun – Ace is currently sorting through a situationwhereby a developer moved abroad and contractorshave not been paid etc, and subsequently themanager ends up being involved in the trail ofdestruction. In another recent instance, expensiveimported car stackers installed in a new developmentfailed and there was no one in Australia capable ofmaintaining or repairing them. “Within days of peoplemoving in, they were getting stuck in their cars inthese stackers.” Not much is easy in this business,not even the terms, says Stephen, who bemoans thefact that there is no uniformity of legislation acrossstates. “In New South Wales and Victoria we callthem Owners’ Corporations; in WA they are calledStrata; in Queensland they are called Bodies 41

Australia -Aveling Homes The team’s very first display A dedication to customer service and a remarkable The relationship that begins during the pre-start home won an HIA Display talent for homebuilding helped the company grow process doesn’t end once the customer walks out the Home Award, and the steadily, despite the rocky economic times. Today, just office door. “We keep in regular contact with our company’s eye catching four years after inception, Aveling Homes boasts 70 clients,” Mr Aveling says. The team will ring a client at employees, a brand new purpose-built office building, least once every week or two during the construction designs have been drawing and 19 display homes – with two more slated for process, even when there is nothing new to report.customers in ever since. What completion this year. “We are very specific about “We like to keep in contact just to say g’day and find trying to create spaces where people really feel at out whether they have any concerns or any questions. is it that makes an Aveling home,” Mr Aveling explains. “We try to create spaces That regular communication has been really good for Homes-built house so that are very comfortable and put you at ease.” The us. It works.” designers carefully consider every variable, from theirresistible? Mr Aveling and Mr direction of natural light to the most appealing ceiling This individualised attention lasts all the way through Zorzi – who has twice been height. “It’s not just about the basic functionality of the to the end of the build, when customers receive their awarded Australia’s Best home, but how the home feels,” Mr Aveling insists. keys. “I sit in with as many of my client handovers as I Builder – channel their “We are very keen that the home functions beyond can,” Mr Aveling reports. “I will sit down with them and what the client might anticipate.” ask them for feedback, whether we have met their expertise and experience into expectations, and if they are happy with their home. It building homes that go far Outstanding customer service is the second secret to is a very positive thing for clients.” Taking the time to the company’s success. The one-stop homebuilding touch base with clients helps the company as well. “Itbeyond a client’s expectations. shop carefully walks each customer through every has been a very important way of gaining feedback In fact, they make it a priority step of the construction and financing process. Clients about where we can improve and what we are doing to create a welcoming, have over 100 home designs to choose from, as well well,” Mr Aveling explains. The team also asks each calming retreat for every as a dedicated consultant to assist them with all of the client to fill out feedback forms so that the company homebuyer. decision making. Moreover, Aveling Homes’ spacious, can constantly push toward improvement. “We do try purpose-built office building contains samples of a and look after our clients,” Mr Aveling insists. “We are wide range of fixtures and finishes, so customers can genuinely customer focused.” see the real thing before signing on the dotted line. “It makes it very easy for them to make their selection,” This commitment to customers has also contributed to Mr. Aveling points out. “Looking at something on a the company’s decision to openly post prices. “We are brochure is completely different to actually picking it one of the only builders in Perth that advertises our up and seeing it. There is a lot of comfort in knowing house prices; it’s very unusual.” Typically, Mr Aveling that their selections really are the right ones.” says, builders try to entice clients using slick images of luxury homes – without disclosing the cost. The idea is In fact, theAveling Homes office building was specially to reel a client in, then determine which house they can designed to provide customers with a relaxing, actually afford after they are already hooked. Aveling positive experience as they move through the Homes, on the other hand, strives for transparency. homebuilding process. “We have a luxurious prestart “Most businesses put their prices online,” Mr Aveling area,” Mr Aveling explains. “It’s very comfortable. points out; builders, he insists, should do the same. Customers feel at ease and not intimidated.” Indeed, “It’s a lot easier for the client to know which one of the the team takes special care to alleviate the customer’s houses fit into their budget,” he says. “They feel more stress and uncertainty. “We understand that the confident to talk to us.” decisions they make are going to impact them for a very long time. We understand that it is very daunting The team members adhere to a special set of values to for a client.” help them carry out their top notch customer service. “We have a few core values that are a big part of the way we behave and communicate,” Mr Aveling reports. “The values have been a very important part in helping us to shape the sort of company that we want to be.” Treating team members, clients, contractors, and suppliers with mutual respect and sensitivity is at the top of the list. “We respect all individuals and value their contribution.” Loyalty and a supportive, team oriented attitude is expected, and accountability is stressed. “We accept responsibility for our performance in all of our decisions and actions.” Embracing change and striving for excellence is also valued. Last, but not least, “We are dedicated to exceeding the needs of our clients and honouring the commitments we have made to them.”42



RTL -Mining and Civil Engineering Specialists The Six Sigma The company, based in the Latrobe Valley some 90 For this extended project, RTL introduced a new andbusiness improvement minutes’ drive from Victoria’s capital Melbourne, innovative brown coal mining technique that saw started life in 1991 as a joint venture between Roche traditional bucket wheel dredgers replaced by CAT process has been Mining, Thiess and Linfox with contracts to provide D11R carry dozers pushing to feeder breakers.successfully applied to heavy mobile plant services to each of the three major electricity generators in the Latrobe Valley. RTL was The technique has provided a less capital intensive key activities in the incorporated in 2011 and is now known as RTL Mining mining method and ensures 100 per cent coal supply mine and has resulted and Earthworks Pty Ltd. reliability.in reductions to mining Since 1991, RTL has expanded its range of services to Annual coal production was 17 million tonnes and the costs year on year. include mining, plant hire, and civil and earthmoving coal was mined on a 24 hours per day, 365 days per contracting along with general, over dimensional and year basis. Three and a half million cubic metres of coal carting transport services. overburden was removed annually. RTL had a sub alliance with Silcar to provide maintenance services Examples of work undertaken by RTL include a for the fixed plant – coal conveyors, for example – continuous presence at each of the Latrobe Valley within the mine. mines, providing heavy earthmoving plant and labour services on a wet and dry hire basis. The company A strong emphasis on this kind of efficiency, as well as maintains a number of major truck and shovel on continuous improvement, is a key area of focus for overburden campaigns at each of the three Latrobe RTL’s management team. Valley mines. It worked on two separate diversions of the Morwell River, one at Yallourn and the other at Complementing RTL’s mining and construction Hazelwood. activities is its mobile and earthmoving plant hire capability. The company operates a large, modern and RTL was involved in an eight kilometre upgrade of the well-maintained fleet of plant and equipment including Strzelecki Highway south of Morwell, carried out 30 and 40 tonne articulated trucks, 50, and 180 tonne contract mining at Yallourn, and executed a number of rear dump trucks, 123kw through to 634kw dozers, a local quarry remediation projects. The company wide range of excavators, graders and front-end constructed the Pakenham waste water storage dam, loaders. RTL’s Transport division operates a fleet of earthworks on the Torrumbarry Weir reconstruction, heavy haulage prime movers and floats for the and earthworks and other civil services on the haulage of earthmoving and construction equipment Victorian Desalination Plant construction. along with other over dimensional loads. In 2002, Yallourn Energy (now TRUenergy Pty Ltd) The company also operates a range of semi trailers to awarded an alliance contract to the Roche Thiess meet general freight requirements. RTL Transport Linfox (RTL) Joint Venture for all mining activities at also operates a modern fleet of B double side tipping the Yallourn Mine. Initially, RTL was awarded a five trucks and trailers specifically designed for coal year mining contract at the Yallourn Mine worth haulage. The fleet operates under Vic Roads approximately $42 million per year, and the accredited mass and maintenance management arrangement was eventually extended to 2012. protocols. With such a breadth of capabilities, it is no wonder RTL has been responsible for executing a number of landmark projects. “Complementing our systems are our people,” reads the company’s comprehensive website; indeed, at RTL, highly skilled employees and quality equipment come together to deliver top solutions for clients.44

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Australia -Fortress Fencing & Safety Systems According to Laurie It is most important, says Laurie, that the company He says it is often the case that a new customer finds it Joyce, Sales should maintain large stocks at its depots around the difficult to work out the cost equation because hiring country (Sydney is the headquarters, with offices in may initially seem more cost-effective. “But when youDevelopment Manager, Brisbane and Melbourne; a branch in Western are hiring you can guarantee there will be some sort of the company’s core Australia is in the pipeline for the next financial year extra costs although you can never actually put your business has always and there is also a distribution centre in South finger on what those costs will be.” For the contractor, been and remains Australia), “because when you are on a construction it is about peace of mind and knowing there will be temporary fencing – site you can never really judge just when you will none of those nasty surprises when the fencing is especially the steel- suddenly need fencing. It’s always the unexpected. returned to the renting company. Stock is absolutely vital.”mesh perimeter panels The contractor can then, since the panels are his, use of the 3000 and 5000 The machines that Fortress uses to produce panels them again on the next project. Temporary, in terms of ranges. As well, are unusual, boasting an exclusive welding process, temporary fencing, is defined somewhat differently. It Fortress offers shade and in constant use churning out up to 700 panels per is only ‘temporary’ in the sense that it is placed in a cloth and scaffold day to keep on hand. “We stockpile each size to particular location for a set period of time and can then netting, printed if the ensure we have plenty on hand at any given time,” be moved to be set up somewhere else. It does not customer so desires, explains Laurie. mean disposable – indeed, “it can be used temporarily many times.” water-filled pedestrian Very few suppliers do this – selling fencing is or crash barriers, comparatively rare, Laurie acknowledges. Indeed, In the particular instance of the Brisbane airport link, why would a contractor want to buy temporary the joint venture that built the tunnel was not acrowd control bars and fencing? It seems almost a contradiction in terms. The company in its own right, did therefore not want an array of other prevailing mindset throughout Australia has been to anything left over at the end of the project and thus hire, but Fortress is trying to change that by selling in negotiated with Fortress a special buy-back related products and this segment as well as for crowd control or other agreement (such used fencing can be attractive to a accessories. products. Laurie points to cost savings, considerable hire company once refurbished, so it is neither wasted reductions in cost in comparison to hiring. Even – in nor sold again as ‘new’). There is room for flexibility, fact especially – on the large projects such as those in says Laurie; “we are trying to sell a concept, not just a Queensland, it has proven to be “far more product.” Fortress can listen to individual situations economically advantageous to buy temporary fencing and help with ancillary situations such as storage or rather than to hire it.” finance options. Laurie adds that – as with renting a car or anything “No other panels are made in Australia,” states Laurie. else – there tend to be a number of hidden ‘extras’ The company sourced machinery from the UK, where involved in hiring fencing. “We have had many the concept of buying temporary fencing is incidentally companies who have come to us saying they are sick much more entrenched. The equipment is state of the of hiring because at the end of a project they have art, and Fortress has made it pay for itself through the been hit with all manner of extra costs such as damage quality it produces. Welds are all robotic using a that they had not budgeted for and there is a cost over- process known as Smartweld. This system first forms run. When you are buying, you can see what the total the ends of the horizontal frame tubes, then uses a cost is and budget accordingly because there are no specially designed CNC welding system to fuse the hidden extras and no tricks.” vertical and horizontal tubes together. The Smartweld process provides a 360 degree weld effect which has been tested to be more than 70 per cent stronger than conventional Mig welded joints, to “dramatically” improve the overall strength and life span of the fencing system. And manufacturing in-house provides better means of quality control, says Laurie, than with panels made offshore, while the cost of the product is under control too and not at the mercy of dollar exchange rates (the steel itself is of course imported but Fortress’ exposure is limited compared to a company that is importing finished product).46

South African construction -Murray & RobertsThe head of South African construction company about R173-million,” he said, adding that average M&R says R309m fine isMurray & Roberts (M&R) says it is incorrect to margin across all projects tendered during the period no ‘slap on the wrist’describe the R309-million penalty imposed on the was 13%, with 80% of projects failing to meet thatgroup by the Competition Commission as a “slap on margin at project completion. The group submitted 2the wrist”. Instead, Henry Laas has described the fine 500 civil engineering, general building andas “significant” and has added that it will serve as a mechanical and electrical tenders between 2001 and“stark and long-term reminder” that anticompetitive 2011.behaviour is unacceptable and will not gounpunished. Laas dismissed the argument that M&R was “rotten to the core”, reporting that the six individuals found toThe JSE-listed group is one of 21 construction have been involved in prohibited practices were nocompanies to have voluntarily submitted itself to the longer in the employ of the group and would never becommission’s fast-track settlement process (FTSP), re-employed. The company was still considering itslaunched in February 2011. legal options with regard to possible action against the individuals, none of whom had been groupM&R is also one of 15 firms to have concluded executives, but some of whom had served assettlement agreements – collectively valued at executives at subsidiaries.R1.46-billion – with the commission on June 24, withthree firms having rejected the settlement and the He dismissed out of hand any suggestion that formerbalance having been found not to be eligible. CEO Brian Bruce had been culpable, noting that many of the actions taken to root out anticompetitiveThe agreements still require ratification by the behaviour had been taken during Bruce’s tenure.Competition Tribunal, which has invited third partiesto make submissions on the proposed settlement on He said he was not overly concerned about possibleJuly 17 and 18. Breaking his silence on the matter on further civil and criminal actions against M&R, or itsThursday, Laas acknowledged that the people of current executives.SouthAfrica deserved an explanation. “I am not worried about any criminal proceedings forThe group disclosed 21 prohibited practices to the the simple reason that none for the executives in thecommission and settled 17 through the FTSP, with group have been implicated,” Laas said, adding thatsettlement talks under way with the commission on he believes it will be difficult to prove and quantifyfour other projects where investigations had been damages in civil proceedings.concluded prior to the initiation of the 2011 process.Laas does not expect this second settlement to be in However, Economic Development Minister Ebrahimany way as material as the one finalised through the Patel has confirmed that government wasFTSP. considering a coordinated plan to file legal claims over-and-above the penalties, while the SouthM&R won seven of the 17 tenders where prohibitive African Local Government Association’s operationspractices were uncovered, including instances of chief, Lance Joel, indicated recently that the sixcover pricing, the payment of loser’s fees or the municipalities affected by private sector bid-riggingholding of price-setting meetings. It was directly would seek some form of restitution.implicated in two projects, with the balance of thecases involving Concor and Wade Walker, which “We realise that there is a lot of work to do to restorewere acquired during 2006 and 2007. trust in our sector, especially with government,” Laas said.“I know the commission’s findings have disappointedSouth Africa,” he said. But Laas also insisted that He added that rebuilding the relationship was vital formuch of the post-settlement commentary had been the sake of delivering on the multibillion-randmisinformed, particularly suggestions that the costs National Infrastructure Plan, which required theassociated with the 300 projects (collectively valued participation of experienced construction andat R47-billion) covered by the FTSP had been engineering companies.inflated by between 10% and 30%. Had that been thecase, construction companies would have earned“super margins”, evidence of which was lacking.“To put the settlement amount of R309-million intoperspective, the profit generated by M&R from theseven projects on which we won the tenders was 47

Australia -South East Queensland’s Boomtown Ipswich’s surging It is a remarkable feat for a community that was boom and that we need to work harder.” But population reflects struggling to stay afloat just a short time ago. “We used developers interested in Ipswich won’t suffer from to be a city that had one of the highest unemployment bureaucratic bumbling on Mayor Pisasale’s watch. these positive rates and one of the highest crime rates in the “Because I understand that the longer you keep a changes. The country,” Mayor Paul Pisasale reports. “We now have developer waiting the more money you are costing population of this the lowest.” him,” he says. The city also puts tremendous effort into making Ipswich a pleasant place to live in order to Queensland Strategies attract and retain residents and businesses. “We do a community is lot of things for residents,” Mayor Pisasale explains. projected to skyrocket Ipswich has done a remarkable job of defying global “We have a lot of fun.” The city sponsors a number of from its current economic trends with its robust economy and above free events, including movies in the park, festivals and 180,000 to 462,000 by average employment levels. Located just 40 minutes celebrations. But the greatest emphasis, Mayor2031. “Our average age west of Brisbane, one hour from the Gold Coast, and Pisasale says, is on building community, so that every was very high in the two hours from the Sunshine Coast, location is resident feels as though they belong. “We are a past,” Mayor Pisasale certainly a positive factor. But this kind of growth and family,” he insists. adds. “We now have success take more than a prime location. It takes one of the youngest concerted effort and careful strategising. “I run the city Projects populations in South like a business,” Mayor Pisasale explains. For East Queensland. We instance, one the key things that he always asks Ipswich is chock-full of development and construction are focusing on the potential investors is, “what can I do to help you make activity. ICON Ipswich, Leighton Properties’ $1 billion next generation.” This a profit?” This proposal takes many developers by redevelopment of the city centre, will be one of the increase in residents surprise, the mayor adds. “They say ‘wow, you are the nation’s largest urban renewal projects. The massive will also feed the first mayor that ever said he wants to help me make a project will cover four city blocks and create building boom for profit.’” Taking a profit minded approach helps the city approximately 170,000 square metres of masterquite a while longer, as – and people – of Ipswich, Mayor Pisasale explains. planned commercial, retail, residential, recreational, the city will require an “When developers make a profit, they put more people and public space. The first stage will be the additional 118,000 on staff, they make contributions to the community, construction of a nine-storey office tower, which is dwellings to house they make donations, they sponsor events. They slated for completion in September of this year. This create jobs.” stage of development alone is expected to create them. around 300 construction jobs – and that is only the In fact, Mayor Pisasale believes that the construction beginning. The entire project will take up to 20 years to industry is key to the city’s growth and continued complete, although the bulk of the work should be economic success. “What people have to realise is finished within the next decade or so. that the construction industry is the start of the food chain,” he says. “The construction industry is what Ipswich is also the site of Australia’s largest master feeds the whole city. The whole economy revolves planned community, the brainchild of the Springfield around it.” Mayor Pisasale’s business minded Land Corporation. The Springfield area, which approach also means running the city with an includes the suburbs of Springfield, Springfield Lakes, efficiency that is attractive to investors. For example, “I Springfield Central, Augustine Heights and make sure that the development applications are Brookwater, has grown by an average of 10 per cent processed quickly,” he reports. Details like this are every year for the past five years. The planned essential to bringing developers on board, he insists. community boasts a total current population of over “Sometimes the bureaucracy forgets that we are not in 18,000, and is expected to draw in a total of 86,000 by the middle of a project’s end. The current statistics already make the Springfield area one of the largest growth areas in South East Queensland. Not surprisingly, this developing community is a driving force behind Ipswich’s rapid rise in population. One factor that is making the Springfield area so attractive is that it is slated to include everything that a resident could want, all in close, convenient proximity. The community will eventually cover 2,860 hectares and include a specially designed 390 hectare commercial centre, dubbed Springfield Central, with over 1.4 million square metres of office, retail, educational, health and technology facilities. When completed, Springfield Central will provide an employment base for at least 30,000 people, giving residents the option to live and work within the same community.48