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Transnet Pipeline Brenner Base Tunnel Petro Peru
ISSUE 1465
NTA Israel
Tel Aviv’s
Transport Dream Constructing and implementing the mass transit system in Tel Aviv metropolitan area
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BUSINESS EXCELLENCE
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CONTENTS
COVER STORY
6 NTA Israel
Tel Aviv’s Transport Dream is Finally Being Realized NTA - Metropolitan Mass Transit System Ltd. is an Israeli government-owned company in charge of the design, construction and implementation of the mass transit system in Tel Aviv metropolitan area, set for full delivery in the next six to seven years.
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Lisbon Metro
A transport system at the heart of Portugal’s global village Lisbon has gained a reputation across Europe as something of a tech hub now with a transport system to match.
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The future is taking off How the number of tourists entering the country has risen.
Brenner Base Tunnel
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Grupo Dupla
Transnet Pipelines
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Las Americas Airport
Cayan Group
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Uniting Europe The Brenner Base Tunnel is one such dreamed-of tunnel under the Alps, which now looks like becoming a reality.
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The pipeline network Regular readers of Business Excellence may recall our profile on Transnet Port Terminals (TPT) in South Africa back in 2013.
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Juan Santamaría International Airport
Changing Middle Eastern Horizons If there’s any industry in the Middle East which has generated more column inches than the oil industry over the past 15 years, it’s unquestionably construction.
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Emblematic of the New Dominican Republic A popular tourist destination with a demand for highquality real estate projects.
Preparing for a take off in tourist numbers Why the Dominican Republic has had to develop its transport infrastructure.
PetroPerú’s Talara Refinery
Showing that expansion can be sustainable The Talara Oil Refinery is Peru’s second largest oil refinery.
100 Jamaica Public Service Company
Powering Jamaica’s future Jamaica’s primary energy company for over 90 years and one capable of serving the country’s roughly 2.8 million residents.
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NTA I
TEL AVIV’S TRAN IS FINALLY BEI
NTA - Metropolitan Mass Transit System Ltd. is an I design, construction and implementation of the ma for full delivery in the n RESEARCH BY
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Israel
NSPORT DREAM ING REALIZED
Israeli government-owned company in charge of the ass transit system in Tel Aviv metropolitan area, set next six to seven years.
oseph Philips BUSINESS EXCELLENCE [ ISSUE 1465 ]
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el Aviv is not only Israel’s second city by population and its business capital, it is also globally recognized as one of the world’s most innovative startup hubs. In addition, according to one 2018 report, more than 300 large multinational firms have set up research and development centers in Israel – mostly in Tel Aviv – to take advantage of its young, tech-savvy population. It’s befitting then, that a vibrant and confident young city should have a transport system fit for the 21st century. Thanks to
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NTA, that’s finally becoming a reality. NTA - Metropolitan Mass Transit System Ltd. is an Israeli government-owned company in charge of the design, construction and implementation of the mass transit system in Tel Aviv metropolitan area, set for full delivery in the next six to seven years. For the past five years, NTA has been led by its CEO, Yehuda Bar-On. Mr. Bar-On was responsible for the commencement of works on the Red Line in August 2015 and the works are moving forward on schedule for the Line’s
NTA ISRAEL
“The Red Line is budgeted for $4.5 billion by government funding. The next two lines – Green and Purple – have been budgeted at $8 billion.”
opening in October 2021. At the end of 2018, preparation works began for the construction of two additional lines – the Purple Line and the Green Line. We thought it was the ideal time to take a look at its progress.
Plans Coming to Fruition The people of Tel Aviv have seen many incarnations of plans for subways, tramlines and other urban transportation systems. The earliest plan came at the end of the 19th century, and a light railway was eventually
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ENGINEERING TO IMPROVE LIFE
NAMA Consulting Engineers and Planners SA was founded in Athens at the beginning of 1990. We undertake the design, the planning and provide consultancy services for a wide range of infrastructure projects at the sectors of Water & Environment, Transport Engineering, Surveying & GIS, Structural Engineering, Geology & Geotechnical Engineering. The company has completed such projects in Greece and abroad.
NAMA SA
Sustainable development NAMA SA is a consulting engineering company, providing consultancy services for a wide range of largescale infrastructure projects at the sectors of: Water & Environment, Transport Engineering, Surveying, Cadastre & GIS, Structural Engineering, Geology & Geotechnical Engineering. We understand that modern integrated design requires a multidisciplinary approach to face problems and adopt high capacity systems and we encourage the application of the principle of “sustainable development”. Over 28 years of experience NAMA, has completed more than 850 projects in Greece and abroad; indicatively referring to: Israel, Cyprus, Bosnia and Herzegovina, Romania, Montenegro,
“Over 28 years of experience NAMA, has completed more than 850 projects in Greece and abroad” United Kingdom, Spain, Dubai, Botswana, cities in India, as well as cross-border projects (TAP, EuroAsia Interconnector); achieving advanced, holistic solutions from conceptual design and planning up to construction and management. NAMA has been the Technical Advisor for Lines 3 and 4 of the Athens Metro on all aspects related to: • Assisting in design coordination with structural & architectural designs of stations • Assisting in preparation of specifications for the signaling – train control systems & formulation of signaling systems architecture
• A ssisting in development of concept architectures for all LV systems (DTS, CCTV, PA, radio, etc.) • Preparation of traction power simulation for extensions • Design review and specifications compliance of the Detailed Designs for Construction of works under construction and new works (civil works & E/M Systems) • Participation in testing and commissioning in all tests (Factory Acceptance Tests (FAT), Stand Alone Tests (SAT), System Integration Tests (SIT), System Performance Tests (SPT), commissioning of operation of depot and operation control center On April 2018 NAMA was appointed as NTA’s Consultant for the strategic project of the Design Checking of Railways Systems. Currently NAMA’s team is working on the Tel Aviv Red Line. NAMA values the trust provided from NTA on this prestigious appointment and is excited to contribute to the development of Tel Aviv’s first LRT network that will affect the everyday life of the city and its people. NAMA Consulting Engineers and Planners SA 32 Perrikou Str., GR-11524 Athens, Greece phone-square Tel: (+30) 210 6974600 Print Fax: (+30) 210 6983657 envelope nama@namanet.gr DESKTOP www.namanet.gr
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Photo: Dagan avs.
Israel's leading real estate and infrastructure group. Creating sustainable living environments around the world for us and for generations to come
www.shikunbinui.co.il
NTA ISRAEL
“The Line will run through 5 municipalities, along one of the most crowded routes in the metropolitan area”
built at the end of the first world war, only to be dismantled within a decade. Several more plans came and went, including one for a subway in the 1960s, until the light rail concept was developed nearly 20 years ago. With all preparations in place, Tel Aviv will finally get the transport system it deserves. As NTA CEO Yehuda Bar-On tells us: “The first line of the mass transit system, the Red Line, is currently under construction. It is expected to begin commercial operation in October 2021. The Line will run through 5 municipalities, along one of the most crowded routes in the metropolitan area.” Mr Bar-On continues: “The Red Line is budgeted for $4.5 billion by government funding. The next two lines – Green and Purple – have been budgeted at $8 billion and will be executed through a PPP model by contractors who will be selected at the end of a current tender process. Together, they will connect
the eastern, western, southern and northern parts of the Tel Aviv metropolitan area to the Tel Aviv city center.”
Expanding the Initial Concept In December 2018, the Israeli Government delivered further good news to the citizens of Tel Aviv, already buoyed by the news of a forthcoming state-of-the-art light rail system. Plans for three metro lines which will join the LRT lines network were initiated a couple of years back. NTA has already finished the feasibility study and preliminary design of the 3 Metro lines and is beginning the statutory design which is estimated to take two years. Mr. Bar-On tells us: “The network has an estimated cost of around 100-150 billion Shekels (US$26.5bn - US$40bn) and will serve 23 municipalities: M1 – from north to south, M2 – from east to west, and M3 – a half ring line connecting all the network lines.”
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Proud to be a part of the NTA National Project In the construction of the light rail of Tel Aviv Ben Gurion Train
Bridge 6 / Latrun
In total, this will encompass over 140km of underground lines and more than 100 stations – a remarkable achievement for the city. The estimated ridership for the metro is 1.5 million passengers per day, although as Bar-On explains, there are challenges in delivering the project: “Alongside the engineering challenges of working in conditions of soft soil saturated in groundwater, the main challenge of the project is working in a crowded urban area, in proximity to residential and businesses buildings along main traffic arteries.”
For the Community and With the Community
Ben Gurion International Airport
MINRAV
MINRAV ENGINEERING & BUILDING LTD
972-88516265 www.minrav.co.il
In addition to hiring over 170 direct employees, there are almost 10 thousand workers involved in the project – as consultants and employees of the contractors. In addition, NTA invests significant resources into community relations, providing implementing continuous contact with residents and business owners in Tel Aviv. This has numerous benefits – not
THE MINRAV HOLDINGS GROUP The Minrav Holdings Group was founded in 1969 by Avraham Kuznitzky, who serves as chairman of the company, and focuses mainly on the real estate sector, including: initiating residential construction projects (through the public subsidiary of Minrav Projects); BOT franchising; contracting work for construction and infrastructure in the public, business and private sectors as well as rental and management of yielding properties. Among other things, the company established the IDF Training Base in the Negev, Israel’s newest and most advanced military base, Bridge 6, which is one of the longest bridges in Israel, tunnels for the Jerusalem express train, etc. In the past year, the subsidiary, Minrav Engineering and Building began to carry out the construction of the Turkish Railway Portal for the Red Line of the
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NTA Light Railway. The project includes, inter alia, construction of the section from Koifman Street in West Tel Aviv to Pines Street in East Tel Aviv, about a kilometer long, including the construction of the Eliflet station and the tunnel using the Hafur and Kasa method. From the station to the entrance to Herzl Street. Minrav Engineering, which won the tender to carry out the work several months ago for a total consideration estimated at NIS 224 million plus VAT, is expected to build the project within 36 months. www.minrav.co.il
NTA ISRAEL
just outlining the complexities authorities, infrastructure Did you know? involved with the project, but companies, emergency and rescue bodies and more. NTA also keeping everyone updated cooperates with each of these about the project timeline and In addition to bodies in order to promote the the benefits that will accrue to hiring over 170 project. Furthermore, meetings them as they progress. direct employees, and outreach activities are held Of this, Mr. Bar-On says: “NTA’s there are almost for urban and environmental public relations team provides 10 thousand organizations and information is ongoing information about the workers involved distributed in the media and on projects to the public through in the project – as social networks.” a 24/6 hotline, conferences, consultants and individual meetings, distribution employees of the Environmental of brochures in mailboxes, contractors. advertisements in newspapers Considerations With Tel Aviv being an important and more. In addition, a natural beauty spot in its own representative of the public right, NTA is keen play its part in maintaining relations team is available at every work site that beauty, even with such significant to respond to inquiries and questions and construction works in progress. Mr. Bar-On provide solutions to problems arising during tells us: “we attribute real importance to execution of works.” issues of sustainability and the environment He continues: “The project also requires throughout all phases of the project. Starting coordination with dozens of different bodies, from the tender phase, all suppliers are among them government ministries, local
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required to meet NTA’s environmental standards and sustainability policy.” He goes on to say: “The construction and development plans include an analysis of environmental influences and environmental guidelines for implementation, while prioritizing not interrupting the lives of local residents during works. The development and landscape plans encourage the creation of green streets, conservation of “green lungs” and upgrading of urban landscapes and street facades.” Perhaps most interestingly of all, the NTA is developing its own set of environmental
indicators and targets that guide the company in the long term and include, among other things, measuring effects such as greenhouse gas emissions, air pollution, noise, energy efficiency and waste treatment. These surpass the minimum standards set by international guidelines and will provide a reference for all the work undertaken by the company in the future.
Partners and Suppliers Mr. Bar-On is keen to emphasize the important role played by government agencies such as the Ministry of Transportation, the Ministry
“The construction project is a complex project, the likes of which has yet to be implemented in Israel”
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of Finance and of course, the Tel AvivJaffa Municipality, all of whom have been invaluable in helping to bring the project to its current stage and will continue to be important partners. In the private sector too, the NTA is lucky to count on trusted partners and suppliers. The main contractors are WSP as project managers, D’Appolonia for QA, CRRC for rolling stock, CRTG and EEB for systems and tracks. Kone won the tender for elevators and escalators. Other suppliers and contractors include LDK Consultants, Nama Consulting Engineers, Motorola Solutions, Alston Transport and Int-Trans. A 21st century system for a 21st century line No one would bet against Tel Aviv, a city of less than a million people, but all of the world’s top companies clamoring to hire its graduates. Its metro says everything about its intentions – 130km of track. To give some context, Buenos Aires has 55km of track to transport nearly 10 million people. It’s not a
sign of being over-ambitious for Tel Aviv; it’s another sign that the city always has one eye on the future. As Mr. Bar-On says: “The construction project is a complex project, the likes of which has yet to be implemented in Israel. The collaboration between Israeli and foreign companies contributes to local learning and experience in such projects, both in terms of developing specializations and in learning from past experience and in creating business partnerships for future activities.” The best R&D engineers in the world will soon be transported to and from work by one of the best transport systems.
NTA ISRAEL
+972-3-7243000 info@nta.co.il www.nta.co.il
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Lisbon
A TRANSPORT SYSTE OF PORTUGAL’S G
Portugal has made an exemplary rebound from the financ driven by its capital city Lisbon, which has gained a RESEARCH BY
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n Metro
EM AT THE HEART GLOBAL VILLAGE
cial crisis that began 10 years ago. This rebound has been reputation across Europe as something of a tech hub
urides Lopess BUSINESS EXCELLENCE [ ISSUE 1465 ]
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LISBON METRO
ortugal has made an exemplary rebound from the financial crisis that began 10 years ago. This rebound has been driven by its capital city Lisbon, which has gained a reputation across Europe as something of a tech hub. Its hosting of Web Summit, the world’s largest tech event, attracts the greatest minds in technology to the Portuguese capital every year - over 200,000 people in total. When the Web Summit chose Lisbon as its destination in 2016, it cited the city’s infrastructure as one its main motivations for doing so. A key component in this infrastructure is Metro Lisboa, the city’s metro network. In 2019, it will celebrate 60 years of service to ‘Alfacinhas’ (as Portuguese people affectionately call people from their capital),
P
The initial section of line opened to the public was Y-shaped line with just 11 stations. In its first year of operation, it carried a massive 15.4 million passengers - a massive figure when one considers that the city was home to a little over 1.3 million people at the time. In the intervening period, several expansions to existing lines were made to cater for growing demand, and the Red Line was added in 1998 to commemorate the 50th anniversary of the company’s foundation, as well as marking the occasion of Expo ‘98 - to this day, a landmark event for the city. The metro is also renowned as being one of the most aesthetically pleasing of its kind in the world. In line with contemporaries such as the Moscow and Stockholm metro systems, many of its stations are filled with pieces and
“In its first year of operation, it carried a massive 15.4 million passengers” so we decided it was a good time to check in on the metro and admire its progress.
Background The Lisbon Metro, or Metropolitano de Lisboa, was founded as a public corporation in January 1948. Its initial brief was to conduct technical and economic studies to look at the feasibility of an underground passenger transportation system that already existed in larger European capitals like London, Paris and Madrid. Authorization for the installation and development of public services quickly followed in July 1949. Construction on the line began in August 1955 and a little over four years later, in December 1959, the system began carrying the first passengers - changing life irrevocably for everyone in Lisbon, who until then, had largely relied on the city’s overground tram network.
installations by respected Portuguese and international artists. For example, 10 of the original 11 stations had artwork by painter Maria Keil. More recent stations include works by contemporary Portuguese artists such as Rolando de Sá Nogueira in Laranjeiras, Júlio Pomar in Alto dos Moinhos, Manuel Cargaleiro in Colégio Militar/Luz, and Vieira da Silva in Cidade Universitária. In 2018, the network stretches across a total of 45 kilometres and 56 stations, six of which connect to other modes of transport. Its rolling stock has 330 cars and it carries around half a million passengers every day. In 2017, it carried just over 162 million passengers and this is expected to grow by around 4% in 2018.
Innovation at its Heart Perhaps one of the advantages of being one of the newest metro systems to be developed
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in a European capital cities is that the Lisbon Metro has had a culture of innovation since it was created. This continues today, with the company stating that its values are: ‘Innovation and development, continuous technological evolution in the best interest of its customers.’ As part of this culture, in 2017, the company’s board of directors established a nucleus entirely dedicated to fostering innovation for the metro.
For example, the metro is considered a frontrunner in what has become known as ‘mobility as a service’ (or ‘MaaS’) - integrating the city’s bus, tram and metro network with the am of significantly enhancing the mobility of people visiting, working and living in Lisbon. As part of this move, it is currently looking into state-of-theart ticketing solutions, with a particular focus on mobile ticketing, which most MaaS operators see as key to improving transport in cities.
“Metro Lisbon has developed a network of partners and suppliers, which assist it to deliver on its mandate on an ongoing basis”
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Partners and Suppliers
arise on a project like this and Metro Lisbon has developed Thyssenkrupp Elevadores, SA, responsible for the elevators in a network of partners and and between the stations on suppliers, which assist it to In 2018 , the the line. deliver on its mandate on an network stretches Support services are provided ongoing basis. Modern metro across a total of by Grupo 8, which takes care of systems are more than a 45 kilometres and the day-to-day security on the network of railway lines and 56 stations, six of underground system, Redecor, carriages - they’re a nexus which connect to which is helping to refurbish of technology, electricity, other modes of and modernize the stations, and ventilation, telecommunications transport. Eurest (Portugal) which caters and engineering, and this is to the millions of people passing reflected in the profile of Metro through the metro system’s Lisbon’s partners and suppliers. various corridors and walkways on their way This network of partners includes about the city and its environs. companies like RARI - Metallic Constructions , Engineering , Projects and Industrial Continuing the Journey Solutions, ENA Portugal, which have fitted Progress on the metro continues. In terms out the metro with its underground 4G of infrastructure, work recently began on mobile network, Safira, which manages many the platform of Arroios station, allowing sixof the onsite facilities, Opway Engenharia, car train operation and an increase of the S.A., responsible for management of the system’s supply capacity. Several stations many engineering tasks that continuously
Did you know?
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Lisbon Subway Train
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LISBON METRO
“In early December 2018, it was announced that the Portuguese government had given the green light to a 210 million euro investment in the Lisbon metro” are also being refurbished and modernized. This involves everything from improving elevators and sanitation facilities to lighting and signalling systems. In early December 2018, it was announced that the Portuguese government had given the green light to a 210 million euro investment in the Lisbon metro, for a plan which includes two new underground stops and the refurbishment of Cais do Sodre, the city’s main transport hub for trains, metro and ferry boats. The works will commence in 2019 and are expected to finish in 2023. One of the iconic images of Lisbon is tram 28 winding its way through the city’s cobbled, hilly streets with the rooftops of Lisbon in the background. But underneath all this, there’s an equally impactful mode of transport which is constantly being improved. The Lisbon Metro has made huge strides in its 60 years of serving the people of Lisbon and hopefully it will do so for many more.
LISBON METRO
1234 556 7889 info@metrolisboa.pt @metrolisboa www.metrolisboa.pt
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UNITING EUROPE Brenner Base Tunnel The Brenner Base Tunnel is one such dreamed-of tunnel under the Alps, which now looks like becoming a reality. RESEARCH BY
Joseph Philips
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he geography of southern Europe is dominated by mountain ranges such as the Alps and the Pyrenees. Although the mountainous terrain contributes to the outstanding natural beauty, for millennia, it has confounded travelers, often leaving them with no choice but to face arduous and sometimes dangerous journeys around the mountains to reach their destinations. In the case of the Alps at least, there was an ever-present desire to overcome these difficulties by going through the mountains
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as opposed to around them. However, even for countries renowned for engineering such as Italy, the task was beyond enormous. Only with advances in drilling technology did the concept of drilling under the Alps become a possibility. The Brenner Base Tunnel is one such dreamed-of tunnel under the Alps, which now looks like becoming a reality. It passes through one of Europe’s busiest routes, from Innsbruck in Austria to Fortezza in Italy, and when finished, will be the longest underground
BRENNER BASE TUNNEL
“Only with advances in drilling technology did the concept of drilling under the Alps become a possibility.”
railway connection in the world. When the opportunity arose to return to the tunnel and check on its progress, Business Excellence simply couldn’t refuse.
No longer a pipe dream The Brenner Base Tunnel is a joint venture between the governments of Italy and Austria. Construction on the project begun in 2008 and significant progress has been made in that time, with weekly updates available on the official project website (www.bbt-se.com).
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US UI E R LD W US UI E R LD W U UI WE R LD W U UI WE R E T LD BU US T E T LD BU US T E ST LD BU US T E ST LD BU US BU W T I T RU BU W T I T R BU W T I T R BU W T I T ST ILD E B RU LD WE ST ILD E B RU LD WE UST ILD E B RU LD WE UST IL E B RU LD W T UIL ST TRU BU W T UI ST TRU BU W T UI ST TRU BU W D T UI ST TR ILD E B RU D WE ST IL E B RU LD WE ST IL E B RU LD WE ST IL E B RU LD WE D D D S T TR UIL T W RU BU WE TR UIL ST W TRU BU W TR UIL ST W TRU BU W TR UIL ST W TRU B BU US D T E ST ILD BU US D T E ST ILD E BU US D T E ST ILD E BU US D T E ST ILD T W RU BU WE TR IL T W RU BU WE TR IL T W RU BU WE TR IL T W RU BU W US T E ST ILD B US D T E ST ILD B U D ST ILD B U D ST ILD E E T S T S U U U B B T R W T T R W T T R B W T T R B W D WE UST UIL E B RU ILD WE UST UIL E B RU ILD WE UST UIL E B RU ILD WE US UIL E B T TR B W D UI ST TR B W D T UI ST TR B W D T U ST TR B T W D T U T U I U I U UI UST ILD E B RUS LD T WE UST ILD E B RU LD WE UST ILD E B RU LD WE UST UILD E B RU LD W T UI T R B W T UI ST TR B W T U ST TR B W T U ST I ST TR E B RU LD WE UST UILD E B RU LD WE UST UILD E B RU LD WE UST UIL E B RU ILD W US UIL ST TRU BU W T UI ST TRU BU W T UI ST TRU BU W D T UI ST TR ILD E B T W D WE ST IL E B RU LD WE ST IL E B RU LD WE ST IL E B RU LD WE D D D T TR UIL E B RU BU WE TR UIL ST W TRU BU W TR UIL ST W TRU BU W TR UIL ST W TRU B TR US D T UI ST ILD B US D T E ST ILD E B US D T E ST ILD E B US D T E ST US T W RU LD W TR UIL T W RU BU W T UIL T RU BU W T UIL T RU BU W US T W E ST TR E B US D T E ST ILD E B RU D WE ST ILD E B RU D WE ST ILD BU W US UI T RU BU W T UI ST TR BU W T UI ST TR BU W T T E E WE BU ILD E B T W LD WE ST ILD E B RU LD WE UST ILD E B RU LD WE UST IL E B BU B IL UI E TR B W T UI ST TR B W T U ST TR B W D T U T U I RU ILD ILD D T RU LD BU UST UILD E B RU LD WE UST UILD E B RU LD WE UST UIL E B RU I ST TR T RU ST TRU ILD W T UI ST TRU BU W T UI ST TRU BU W D T UI ST BU W US RU ST WE ST TR E B RU LD WE ST IL E B RU LD WE ST IL E B RU LD ILD E B T W ST WE BU W US UI ST TR BU W D T UI ST TR BU W D T UI ST TR W T UIL E WE BU ILD E B T W LD WE UST ILD E B RU LD WE UST IL E B RU LD WE E RU D BU B IL T U E TR B W T U ST TR B W D T U ST TR B BU S T IL U D R IL B U U ILD W U U ILD W U R R E E D I I T I R S S U U TR IL W U D LD TR S T I T LD B US T E T LD B US T E ST US D T E ST TR TR US T W RU LD W T UIL T RU BU W T UIL T RU BU W R W R ILD T W RU BU WE UST US T W E ST TRU E BU US D T E ST ILD E BU US D T E ST ILD S I E BU W S IL T RU BU W T I T RU BU T E T LD B W T Seestrasse 72 b, CH ‐ 6052 Hergiswil (NW) Tel. + 41 (41) 630 42 20 | info@rencons.ch | www.rencons.ch
RENAISSANCE Construction - INFRASTRUKTUR: Untertagebau | Kraftwerksbau | Bahnbau
BRENNER BASE TUNNEL
“The project will have an estimated completion cost of over 8 billion euro, which will be shared between the Austrian and Italian governments.� In 2019, there are four construction sites in operation with two in Italy and two in Austria: Tulfes-Pfons, Pfons-Brenner, Mules and the Isarco River Underpass. The project will have an estimated completion cost of over 8 billion euro, which will be shared between the Austrian and Italian governments. At its deepest, the tunnel will be around 1,600m below the surface and will be nearly 800m above the surface at its highest point - giving some indication of the challenge that faced the
engineers on this project. The distance between cross-passage tunnels will be 333m, while the diameter of each of the single track tubes will be 8.1m. Sections of the tunnel which have already been completed include the emergency tunnel (9.7km in length), the main tunnel (5.9km in length), the connecting tunnels (6.8km in length), the Exploratory tunnel Ahrental-Pfons (15km in length) and the safety and logistics tunnels (3.8km in length). In all, nearly three quarters of the lines have been completed
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and in early 2019, work was said to have sped up considerably. When completed in 2026, the impact that the Brenner Base Tunnel will have on logistics in this part of Europe - and beyond - will be massive. By on estimate, a train journey from Munich in the south of Germany to Verona in mid-Italy, could be as short as four hours. The journey currently takes around seven hours in total. As one of the most important routes from northern to southern Europe, it is no exaggeration to say that it will change
how business is conducted in the region. Underlining this, between 200 and 250 trains will pass through the tunnel every day, with passenger trains traveling at a planned 250km/h and freight at around 160km/h.
Sustainability To grasp the impact that the tunnel will have in terms of sustainability, one just has to look at the road traffic numbers that currently exist between Innsbruck and Fortezza. Tailbacks as long as 100km - mostly consisting of container
“ The trains travelling the Brenner Base Tunnel will all be electric, significantly diminishing the CO2 impact of cargo and traffic�
TEST TUNNEL Real scale fire and ventilation tests Training for Fire-Fighters
CONTACT info@appluslaboratories.com www.appluslaboratories.com +34 667 186 957
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BRENNER BASE TUNNEL
Other e nvironm e ntal trucks - have been reported in Did you know? initiatives undertaken by the the past few years, while over 1 project coordinators have million trucks passed through the included creating homes for bats section of motorway in 2018, or Between 200 and which were displaced by the approximately 40% of all traffic 250 trains will construction works, clean water through the Alps. By contrast, pass through the filtration for water used and the trains travelling the Brenner tunnel every day, disposed of, spawning aids for Base Tunnel will all be electric, with passenger fish along the route, reforestation significantly diminishing the CO2 trains traveling at a wherever trees have been felled, impact of cargo and traffic. planned 250km/h and a commitment to use plants Respect for the environment and freight at wherever possible to minimize has also been a feature of around 160km/h. the visual impact of the tunnel. the construction works. Both governments have independently Partners and Suppliers verified the environmental As one might expect for the largest train for compatibility of the project on the basis of their what will be the longest train tunnel in the respective environmental laws. Likewise, data world when completed, the Brenner Base was gathered on fauna and flora, agriculture Tunnel employs partners and suppliers with a and forestry, air and noise pollution as well as variety of technically complex skills. the water resources along the Brenner corridor Clearly, a project like this is one of the to provide an environmental assessment base most advanced in terms of engineering that for a comparison of conditions before, during Europe has ever seen. A group of carefully and after construction.
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“Clearly, a project like this is one of the most advanced in terms of engineering that Europe has ever seen” selected engineering teams have worked closely together at all stages of the project. This group includes Amberg Engineering, Advanced Microwave Engineering srl, SWS Engineering S.p.A and Applus+ Laboratories. This group of engineering firms has been required, and been provided with, state of the art drilling and technology. This has mostly been provided by Herrenknecht (Australia) Pty Ltd, and Ripamonti Dr. Gianni s.r.l. Other equipment necessary for the delivery of the project includes breathing equipment provided by GRUBER Logistics - and of course, a complex array of telecoms equipment, all provided by Brennercom S.pA.
No mountain too high In a decade when the very existence of the European Union has been questioned, the Brenner Base Tunnel shows the potential of two countries working together as part of a larger goal. Not only is the project remarkable in its ambition, it will also have an immediate and lasting impact on the CO2 output of this area. When delivered in 2026, it is no exaggeration to say that logistics and transport in this part of the world will never be the same again.
BRENNER BASE TUNNEL
info@bbt-se.com www.bbt-se.com
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THE PIPELINE NETWORK Transnet Pipelines Regular readers of Business Excellence may recall our profile on Transnet Port Terminals (TPT) in South Africa back in 2013 RESEARCH BY
Joseph Philips
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PT was, and remains, a central player in South Africa’s growing exportled economy. Indeed, since the time of the article, South Africa’s exports have almost doubled in volume, underlining the importance of TPT and its ilk to the ongoing success of the country. In 2019, we’re returning to South Africa’s TPT, although this time, we’re instead casting an eye over one of its subsidiaries: Transnet Pipelines (TPL). TPL is one of the five operating divisions in the Transnet Group, all of which fully-owned by the South African government. TPL provides and maintains the petroleum and gas which fuels the group’s ports and railway network which span the country. The statistics bear this out. TPL itself estimates that it is responsible for about 65%
T
Its infrastructure is not limited to pipelines. It also has associated pump stations, storage tank farms, and a central and remote control centre infrastructure spread across five provinces in South Africa. The pipeline network is managed through a Master Control Centre which operates on a 24/7 basis, located at its head office in Durban. In addition,TPL owns and operates a 30-million litre tank farm with road and rail loading facilities in Tarlton to facilitate cross border deliveries via road and rail to Botswana and has a refractionator plant in Tarlton, which is unique for a pipeline operator. Every year, TPL produces approximately 17 billion litres of liquid fuel, ranging from petrols, diesel and jet fuel to crude oil and gas (methane rich gas). All of its output is tested at three separate stages to guarantee
“Every year, TPL produces approximately 17 billion litres of liquid fuel, ranging from petrols, diesel and jet fuel to crude oil and gas” of all the refined product required for the South African inland market. It also transports more than 70% of all jet fuel at OR Tambo International Airport, 100% of the crude requirements for the Natref refinery, and 100% of the gas requirements to KwaZulu-Natal for the Sasol Gas clients. The natural decision for Business Excellence was therefore to take a closer look at TPL’s operations.
Background TPL was founded over 50 years ago, in 1965. It operates, manages and maintains a 3,800-kilometre high-pressure underground petroleum and gas pipeline network in South Africa. Its activities span the whole value chain, as it drills fuel from its source and ensure that it reaches the end client in consumable form.
its quality for the end user: at intake, in transit and on delivery. Likewise, it has continuously expanded and reconfigured the pipeline network to keep abreast of capacity demands. An example of this could be seen in 2012, when the company commissioned its most recent investment in a 24-inch diameter new Multi-Products Pipeline (NMPP). TPL’s network of pipelines are of strategic importance to the national economy of South Africa and are critical in maintaining a reliable, continuous and efficient supply of crude and refined products to industry. The uninterrupted gas supply is vital to consumers along the route, which include industry giants such as BP, Chevron, Engen, PetroSA, Shell, Total, Sasol and local energy suppliers such as AfricOil and Vuyo.
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MEETING OUR CUSTOMERS’ NEEDS FOR TOTAL QUALITY ASSURANCE Intertek is a leading global player in Assurance, Testing, Inspection and Certification for a wide range of industries including Petroleum, Agriculture, Mining and Exploration, and Trade. Our network of more than 1,000 laboratories and offices and over 42,000 people in more than 100 countries, delivers innovative and bespoke Total Quality Assurance solutions for our customers’ operations and supply chains. As an ISO 9001:2008 certified company with rigorous internal quality control standards, we offer comprehensive testing capabilities throughout Africa. All our flagship laboratories are ISO 17025 accredited. From quality to foreign trade supervision, Intertek is entrusted by both governments and industry to ensure that products and services comply with requirements.
FOR MORE INFORMATION +258 23 324 521 (Mozambique) ops.cbe-beira@intertek.com
intertek.com/petrochemicals
TRANSNET PIPELINES
People, and their safety, are a paramount importance
“TPL’s network of pipelines are of strategic importance to the national economy of South Africa and are critical in maintaining a reliable, continuous and efficient supply of crude and refined products to industry” All of the company’s business is conducted under the highest possible standards. TPL has a 5-star NOSA rating and is Level-2 B-BBEE compliant – accreditations that the company is committed to maintaining and building upon moving forward. In addition, its environmental management system (more of which below) has been awarded with ISO 14001 certification, providing it with independent recognition of its thoroughness.
People and Environment People, and their safety, are a paramount importance. The nature of its work means that it operates across inherently high risk environments. As such, it emphasizes the importance of safety across its operations. Notably, its annual report states of safety: “we will not settle for basic compliance.” As such its safety management is guided its SHEQ Safety Management Policy, a policy designed in-house to meet the standards set by TPL.
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TRANSNET PIPELINES
Features of the SHEQ Policy include: ongoing development, implementation and review of safety policies, standards, procedures and guidelines; independent boards of enquiry investigations into accidents; training in functional first aid, SHE Representation, incident management and risk management areas, among several other measures. This has resulted in a year-on-year diminishment of the employees involved in safety incidents. On the environmental side, as mentioned above, TPL is certified in terms of the
internationally recognized environmental management system, ISO 14001. It also abides by relevant industry standards and protocols related to inspection and maintenance of pipelines and associated infrastructure, storage facilities and bunded areas, to prevent damage to the environment due to spill and leakage incidents. TPL aims at a continual improvement process in its operations to ensure the protection of natural resources in the environment it operates in.
“TPL aims at a continual improvement process in its operations to ensure the protection of natural resources in the environment it operates in�
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© SGS Group Management SA – 2013 – All rights reserved - SGS is a registered trademark of SGS Group Management SA
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TRANSPORTATION
Cargo safety and integrity is critical. You need the peace of mind that comes from knowing that wherever your cargo is in the world, whichever transport route and vehicle it is contained in, best practice has been adhered too. SGS experts check against current standards and regulations, ensuring all health and safety requirements are met and that the right quantity and quality reaches the destination. Trust the integrity of your cargo with SGS Inspection Services, for more information visit www.sgs.com/ogc or contact ogc@sgs.com. Solutions for Oil, Gas & Chemicals that go ON and ON and ON...
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C O N T R A C T O RS QUALITY CONSTRUCTION - DELIVERED ON TIME
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T 011 867 0808 | F 0866351264 | Cell 082 496 8179 E Jairacontractors@worldonline.co.za
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Your weekly digest of business news and views
www.bus-ex.com
TRANSNET PIPELINES
“As one would expect from a company with the scale of TPL’s operations a number of partners and suppliers are fundamental to it delivering its output”
Partners and Suppliers As one would expect from a company with the scale of TPL’s operations (without even considering those of the Transnet Group), a number of partners and suppliers are fundamental to it delivering its output. These include local South African firms like Jaira Contractors, MTC Masters (Pty) Ltd, Total South Africa (the domestic arm of the French energy giant), Liberty Freight and Woodhead Rigby.
Among its international partners, TPL uses SAP software for enterprise management and employs an efficient and streamlined SAP customised customer interface system for its “order to cash process”. Japanese giants Mitsubishi Electric have also installed video walls at the National Pipeline Operating Centre in Durban, while German firm Siemens AG has helped TPL to install a state-of-the-art Process Control System (PCS).
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“Opportunities abound everywhere across the continent, from Namibia to Tunisia, with economic growth rates often significantly exceeding those of other regions” The Future: International Expansion Having consolidated its position on its home market, TPL already seems ready to take its expertise abroad. This already began back in 2004 with a partnership with Mozambique’s Pande Gas, but now looks to be reaching a new level. In March 2019, TPL announced that it was in talks with the Kenyan government to operate Lamu Port, which the East African nation is developing to use for its planned exports of oil. This is just one of several African port concessions that TPL is eyeing (through the Transnet Group’s International Holdings entity), looking at bringing its considerable experience to bear on other countries. Opportunities abound everywhere across the continent, from Namibia to Tunisia, with economic growth rates often significantly exceeding those of other regions. Surely it won’t be long before European and North American ports can expect to see TPL bidding on their own port concessions. TRANSNET PIPELINES
+27 11 308 3000 info@transnet.net @follow_transnet www.transnet.net
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CHANGING MIDDLE EASTERN
HORIZONS Cayan Group If there’s any industry in the Middle East which has generated more column inches than the oil industry over the past 15 years, it’s unquestionably construction RESEARCH BY
Abi Abagun
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CAYAN GROUP
f there’s any industry in the Middle East which has generated more column inches than the oil industry over the past 15 years, it’s unquestionably construction. The past decade and a half has brought a wave of development, and with it, some of the world’s most high-profile new buildings to the region. Many of the most notable of these buildings sprung up in Dubai, the home of the Cayan Group. In the nearly 15 years since it was founded in 2004, the company has developed a plethora of attractive, iconic buildings in both Dubai and Saudi Arabia. We recently spoke with Mr. Ahmed M. Alhatti, the company’s Founder, Chairman and President, about its past, its operations and the construction outlook in the Middle East.
I
Introduction Mr. Alhatti began by telling us about the company’s origins, back in 2004. “It all started with just one project - which was an initiative for our own investment. It was a very successful start, so we decided to take it to the next level and start several projects after that and that was the start of Cayan.” He continues: “We completed about 9 projects in that period. We currently have a few projects currently under construction. One in particular, Two Towers, in Dubai is a hotel, apartment and residential. We also have about 5 projects under planning and construction in Saudi Arabia.” When we put it to him that, from what we can perceive the buildings look of the highest quality, he takes some issue with the assertion: “i would use another word,” he says. “Iconic. We strive to make each one of our buildings iconic. When you work in Dubai, with the level of competition, your developments need to be extraordinary.” Given the high-profile construction in the region over the past decade and a half, it’s not an unreasonable point. How does Cayan Group achieve it? Mr. Alhatti says there are two key elements: “First, you need a smart
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design. Secondly, you need to have the highest quality. Otherwise, you can’t stand out from the crowd, and that’s why I really enjoy working in Dubai, because we’ve managed to make a name by doing both.”
One word: ‘Iconic’ Casting our eyes over some of the Cayan Group projects in Dubai and Saudi Arabia, the word ‘iconic’ seems an apt description. Cayan has over 14 major projects including notable landmark buildings in residential, commercial, hospitality
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and even gated communities. Many of these would be the standout developments in any city across the world, so it gives some indication of the standard that’s expected in this area. They include the recently-built Cayan Tower, with its spectacular views over Dubai’s marina, and officially the world’s tallest twisted structure at 73 floors high, and the Jewels, two twin towers also located in Dubai’s harbor which evoke London’s Shard building, whilst simultaneously respecting their own environment. The Silverline, also located
CAYAN GROUP
“Cayan has over 14 major projects including notable landmark buildings in residential, commercial, hospitality and even gated communities�
by the Dubai marina is a 2 tower spectacle designed by RMJM. In Riyadh, The CMC Tower, a state-of-the art business facility designed to create an environment that inspires. There is also the 12 story Cayan Business Center as well as the Layaly Compound is a total change of direction, being a gated community, but no less an impressive development.
The best of both worlds While most companies spend a few years focusing on one country before looking at
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others, the Cayan Group began working on projects in Saudi Arabia just months after starting up in Dubai. Mr. Alhatt says: “We’re a big believer in both countries. Dubai is an international city. There are ups and downs, but at the end of the day it’s Dubai. Saudi Arabia is the strongest economy in the region, with internal demand and strong liquidity so we’re dedicated to both of them.” “Dubai is a truly international city now. While it’s not like London, Hong Kong or Shanghai, it still draws huge demand from the international market. It’s unique in the Middle East - even with a drop off in oil prices,
investors continue to believe in it for the longterm.” Riyadh is also exciting in its own ways, as he points out: “Riyadh is also unique but for different reasons. As i mentioned, it has its own internal demand, partly driven by one of the world’s fastest growing populations - it already has 7 million people.”
Sustainability The Cayan Group has gained a reputation in the region as one with an ongoing focus on sustainability in its developments. As Mr. Alhatti says: “Right through the design phase, we consider all the aspects
“Right through the design phase, we consider all the aspects of sustainability. It’s become a necessity now. It’s not just about making buildings sustainable”
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CAYAN GROUP
a program generated by the of sustainability. It’s become Did you know? Cayan foundation for children a necessity now. It ’s not at the Social Education Centre just about making buildings in Riyadh. sustainable - it always makes The recently-built a project easy to market to Cayan Tower, with Strategic partners and clients on the market.” its spectacular providers Another key aspect of views over Mr. Alhatti says: “As a developer, C ayan group’s approach Dubai’s marina, we try to manage our business to sustainability is their and officially the with alliances with different continuous investment in the world’s tallest parties. We deal only with Class attraction and development twisted structure A constructors and consultants. of its employees. Creating at 73 floors high As a result, the number of alliances with r e l ev a n t people within our group is instructions in the region as limited - a case of quality over well as offering internships to quantity. Between Riyadh and Dubai, we recent graduates as well. have about 100 people.” Aside from construction, it has He continues: “In all fields of our implemented a number of educational, health, operations, we maintain close strategic and social initiatives over the past number of relations with local and international years. Recent examples have included Our entities, which have been developed over Fathers’ Happiness, whereby Cayan Group the years. These include constructors, staff created a party for elder patients at a architects, contractors, semi-contractors, clinic in Riyadh, and Children of the Future,
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financial entities and others.” Among them are Arabtec, Cayan Groups main contractors and Khatib & Alami, its principal consultants. Elsewhere, for materials and services, it calls on companies like LojainNet Communication (for structured cabling) Beijing Jianghe Curtain Wall Co. Ltd (aluminum and glazing), Emirate Marble (for marble) Emirates Rebar (for steel), Gulf Steel industries (for roofs and structural elements), Drake & Scull (MEP) and international engineering firm Honeywell for bridge maintenance.
The Future It seems remarkable to talk about the Cayan Group as a fixture on the Middle Eastern construction scene, when the company will only celebrate 15 years in 2019. But it’s already planning ahead. Mr. Alhatti says: “The way we work, we meet before the beginning of the year to draw up our revenue targets and then we look at the opportunities which best serve those targets. And of course, we consider the market and the ongoing research that we do.” He continues: “We have a 5-year strategy for our company. It’s a dynamic plan - subject to change - but we look at a 5-year horizon. We’re achieving all our targets in terms of construction, financials and other KPIs, but right now, we’re right on plan.” In the years ahead, as construction continues to boom in the Middle East, thanks to firms like the Cayan Group, we can expect to see more iconic buildings appear on the horizon.
CAYAN GROUP
+966 1141 63311 info@cayan.net @cayangroup www.cayan.net
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Juan SantamarÃa In
THE FUTURE IS
The number of tourists entering the country has risen eve without the stellar contribution of Juan S RESEARCH BY
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Fe
nternational Airport
S TAKING OFF
ery year since 2010, none of this would have been possible Santamaria International Airport (“SJO”)
ernando Ruiz BUSINESS EXCELLENCE [ ISSUE 1465 ]
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igures recently released by the Costa Rican Tourist Board show that tourism in the small Central American country is thriving. The number of tourists entering the country has risen every year since 2010, reaching a total of just over 3 million visitors - the first time it has achieved that landmark figure. None of this would have been possible without the stellar contribution of Central America’s second largest airport, Juan Santamaria International Airport (“SJO”). In addition to contributing to the country’s
F
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economic prosperity, AERIS - the company in charge of managing SJO, has racked up a number of awards over the past number of years - including the recognition of most improved airport in all Latin America and the Caribbean, granted by ACI and the recent renewal of the ISO 9001.- a testament to the quality on offer in Costa Rica’s main airport. Buoyed by this success, we thought it would be a good time to catch up with Rafael Mencia Ochoa, Executive Director at Aeris, responsible for operations at SJO.
JUAN SANTAMARÍA INTERNATIONAL AIRPORT
“The number of tourists entering the country has risen every year since 2010, reaching a total of just over 3 million visitors”
Background SJO is located in Alajuela, approximately 20 kilometres from downtown San Jose, Costa Rica’s capital. It is owned by the government of Costa Rica and is runned by AERIS Holding. The airport administrator is supported by the experience of his parent companies HAS Development Corporation and CCR Group. CCR has participation in Quito International Airport, Curazao International Airport and Belo Horizonte International Airport, Minas Gerais, Brazil.
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NEWREST
CATERING UNLIMITED The Group Newrest, a specialist in out-of-home food service, is a global leader in multi-sector catering. The Group, which reported assets under management of 1,874.9M€ en 2017/18, employs 32,000 people in 49 countries. Catering Unlimited Founded as Catair in 1996, the French company chaired by Olivier Sadran and Jonathan StentTorriani sells its expertise in numerous countries around the world. Newrest is the only caterer active in all catering and related hospitality segments, including Inflight, buy on board, duty free, Catering and Remote site, Rail, Retail and support services. Solid shareholder structure Solid business development requires a solid shareholder structure. Newrest Group’s capital is majority-owned by its management – over 340 managers own a combined stake of 88.7%, with the remaining shares held by trusted private
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3
ACTIVITY SECTORS
INFLIGHT / CATERING / RETAIL
investors. The company is therefore in control of its strategic choices – and shall continue to choose long-term sustainable development over short-term gains. Newrest’s commitments Every day, our 32,000 employees turn out 1,200,000 meals for some of the biggest countries in the world. Newrest is committed to continuously improving and innovating the services it offers to its clients, as well as to the well-being and progress of its employees and executives. Sustainable development and adherence to social values lie at the heart of the company’s ethos and activities.
Our history in Costa Rica In 2015, Newrest Group purchased Casa Proveedora Phillips ( Created in 1947 ) and took over the management of San-José (SJO) inflight kitchen on the 1st of June 2015. Since then, Newrest has been implementing an improvement plan in order to bring the facility up to Newrest’s international standards. Newrest Costa Rica’s SJO unit is ISO 9001 and 14001 certified, and follows a strict HACCP process, to supply more than 8000 meals per day and services an average of 70 flights per day. For 2017 we conducted an investment of $1.0MM for the opening of a new unit in Liberia (Guanacaste Area) that started operations in August 2018.
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FLIGHTS / DAY
The unit provides inflight catering services to a well balance portfolio of full service, VIP and charter airlines.
8,000 MEALS / DAY
450
EMPLOYEES
Newrest Costa Rica is an actor of retail food & beverages at Juan Santamaria Airport with 2 restaurants and a food store. Newrest provide as well its Catering expertise to manage Restaurants and Food Services of many clients all over Costa Rica. NEWREST Costa Rica 300 mts Sur City Mall, Radial Fco.J.Orlich 20101 Alajuela, Costa Rica +(506) 2437-1700 www.newrest.eu
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SJO celebrated its 60th anniversary in 2018, having been formally founded in 1958. This milestone was followed by welcoming a record number of passengers. In the last year, Mr. Mencia Ochoa says: “Passenger traffic reached about 5.3 million people in 2018, representing a growth of 36% in the last 4 years (from 2014 to 2018). Undoubtedly, these figures have been possible thanks to the synergy and joint work with State institutions, for having a prosperous and robust industry, which is increasingly important for Costa Rican economy”. He estimates that around 6,000 people are employed directly or indirectly in all the
airport. They have also created an imperative for the airport to keep investing. He says: “The investment in works completed at SJO totals $81 million, which has allowed the arrival of wide-body aircraft, the opening of new routes, direct connections, increase in flight frequencies, airport security and passenger comfort.” The latest block is spread over 6,000 square metres (or slightly under 65,000 square feet) on four separate levels. It cost a total of $25.5 million, which was divided between the government, its operating partner Aeris Holding and the country’s aviation authority. It forms part of a larger
“He estimates that around 6,000 people are employed directly or indirectly in all the airport”
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JUAN SANTAMARÍA INTERNATIONAL AIRPORT
standards across three measures: long-term investment program, Did you know? comercial-focus initiatives, higher than $143 million. which respond to the needs Mr. Mencia Ochoa notes that of passengers; social actions since 2018 and during 2019 will The latest block is that have an impact on the see the delivery of new projects, spread over 6,000 community surround the airport which include an extension of square metres and environmental initiatives. the existing runway, a relocation (or slightly under Mr. Mencia Ochoa says: and extension of Candela Street 65,000 square “This program evaluates the (a street which runs along feet) on four performance of the participants the perimeter of the airport) , separate levels. annually with a maximum of three safety zone added at the end stars per category.Throughout of the runway, some connectors the process, the Airport Manager to the main track and south provides support to businesses from its parallel taxiway. This will run in parallel with commercial and environmental unit. Year improvements within the terminal, which after year, the participation of operators in he says “will increase the airport’s overall the Excellence Program has been improved.” capacity and reduce passenger processing This in itself has no doubt contributed to the times.” growing popularity of SJO with visitors. He continues: “For its part, Aeris Social and Economic Impact supports key projects of entrepreneurs in AERIS has implemented an excellence the area (artisans) in order to strengthen program for its commercial partners to ensure the profitability of their activities and have that they meet the highest international
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Your catering partner in Costa Rica Institutional Catering ∙ Retail ∙ Inflight Catering
Present in 49 countries and with revenues under management of almost 1.9 Billion Euros in 2017/18, Newrest is today a global leader in multi-sector catering. Our 450 employees in Costa Rica serve every day 8,000 meals to each kind of client.
Newrest Costa Rica ∙ 300 mts Sur City Mall ∙ Radial Fco.J.Orlich ∙ 20101 Alajuela ∙ Costa Rica (+506) 2437-1700 | info.cr@newrest.eu | www.newrest.eu
JUAN SANTAMARÍA INTERNATIONAL AIRPORT
“AERIS Holding Costa Rica is an organization that is committed to compliance with environmental sustainability standards” a more prosperous society. The Mercadito, which agglomerates two cooperatives (Coopemipymes and Coopearsa) and allows about 123 artisan families from Sarchí and Cartago (areas in Costa Rica) to market their products to the millions of passengers that transit through the terminal.”
Growing sustainably As a country of outstanding natural beauty, it’s important for all SJO stakeholders that its rapid expansion is undertaken in a sustainable
manner. According to Mr. Mr. Mencia Ochoa: “AERIS Holding Costa Rica is an organization that is committed to compliance with environmental sustainability standards. We have prioritize the identification, reduction and prevention of environmental, social and occupational risks in all of our operations.” He goes on to provide a long list of measures taken by SJO to ensure that it meets and indeed, surpasses the environmental and sustainability standards required of it. These measures include the efficient and sustainable
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ENERGY SECURITY We are the Company that contributes to the energy security and development of Costa Rica by guaranteeing the supply of fuels, asphalts and naphtha, with business excellence and quality, in a socially and environmentally responsible way.
Call (00506) 2284-2700 or visit www.recope.go.cr
RECOPE
We have been supplying fuel to airlines for 40 years For more than four decades, the oil state company, Enterprise RECOPE has provided fuel (Jet-Fuel and Av-Gas) in Juan Santamaria International Airport, ensuring the supply to the major Airlines which use the terminal, located in the Alajuela province of Costa Rica. The dynamism of the tourism sector in this country reflects the growth in sales in the main airports operating in the country, of all of them, RECOPE has the operation under its responsibility. In RECOPE´s terminal Juan Santamaría, according to our registers, sales increased by 13.3% in 2018, going from 179,552,000 litres in 2017 to 203,397,000 litres in 2018.
“Between 2017 and 2018, sales at International Airport of Costa Rica grew 13.3%” This increase is closely related to the number of tourists that visit the country. According to the information provided by the Costa Rican Tourism Institute, during 2018 Costa Rica welcomed 3,016,667 foreign visitors from different points of entry into the country, an increase of 1.9 percent in relation to 2017. Most of these visitors arrived through both international airports, Juan Santamaría in Alajuela and Daniel Oduber Quirós in Liberia,, with a combined total of 2,314,888 visitors; this figure, when divided between them, represents growth of 5.9% (1,760,695 arrivals) and 5.1% (552,589 arrivals) respectively. Storage and sales facilites Regarding fuel load at the wing plane, RECOPE has the facilities and equipment to secure a continuous supply and adequate storage,
following strict quality control procedures under the most rigorous international standards. In the Juan Santamaría International Airport, up to 11 aircraft can be supplied simultaneously thanks to the 2011 modernization project of the airport, with a total investment of $21,783,232. The project included relocation and expansion of the air terminal, the construction of new systems for the receipt, filtration, storage and dispatch to the ramp and the installation of all underground pipes and hydrants. The project was developed by the EDICA-Hatch Mott Mac Donald-Safe Fuelling Equipment consortium and also included auxiliary systems such as: fire protection system, security systems, workshops and warehouses, oil water purification systems, an administrative building, parking zone for tankers, the acquisition of server trucks, as well as billing offices, located near the aircraft parking slots. RECOPE count with the best staff and?? equipment to develop the sales activity at the Juan Santamaría International Airport in Alajuela; Daniel Oduber Quirós in Liberia, Guanacaste; Tobías Bolaños in Pavas, San José and one small airport that operates in the province of Limón, Atlantic Coast. The last two small airports mentioned above, receive small planes, helicopters, and private jets. In this way, RECOPE not only guarantees the national energy security, supplying fuels primarily to the industrial sector and for land transportation, but this national Company also rathers transcend beyond it borders supplying aircraft and ships that arrive in the country, thus encouraging the economic and tourist development of the nation.
phone-square (00506) 2284-2700 DESKTOP www.recope.go.cr
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“We will maintain the focus to continue leading the region with a safe, technological airport”
use of natural resources (as witnessed by its Excellence Program), working with programs for monitoring and reducing environmental impact and participation in programs to ensure the safety and protection of wildlife in the vicinity of the airport. The infrastructure investments made at the airport will also be monitored under the strictest possible environmental standards. As Mr. Mencia Ocha says, “all infrastructure works at the airport incorporate internationally-recognized sustainable construction standards. For example, the Domestic Terminal was built under the LEED Certification and other construction works contracts have included have sustainability standards as part of the terms.”
Partners and Suppliers SJO’s partners and suppliers are a diverse range of companies from across the globe. In fuel and ground handling, it can call on Recope, Newrest, Swissport International Services and ADS Ground Handling. Retail is no less catered for, with companies such as Britt, QSR, Gastro Pub, Inmobilara Bertero and Starbucks offering clients a wide array of choice during their stay at the terminal. On the airlines and cargo side, the list is constantly growing. Some of the most well-known names include DHL Cargo, Lan Cargo, Air Canada, British Airways, Edelweiss, Lufthansa, Airfrance/KLM, Interjet, Volaris, Jet Blue Airlines and Spirit Airlines.
The Future Given the success of the management of AERIS and the growth of the main airport
in Costa Rica. Mr. Mencia Ochoa says: “We will continue with efforts to provide the country with a contemporary airport, which contributes to national competitiveness and exceeds world standards, as well as those established in the Management Contract.” He continues: “We will maintain the focus to continue leading the region with a safe, technological airport, ideal for working and with high levels of satisfaction among passengers, airlines and subcontractors. All of the above and more will be a reality through the close and transparent links we maintain with the government administration and its leaders.” By all indications, it will be capable of delivering on this lofty task. Not only is the airport growing sustainably, but figures released by Costa Rica’s airport authority show that it is doing so on a month-to-month basis. With flights extending only to North and South America and Europe, there is still considerable runway for growth. Southeast Asia, the Middle East and Africa all have yet to benefit from direct flights to Costa Rica. They don’t know what they’re missing.
JUAN SANTAMARÍA INTERNATIONAL AIRPORT
+506 2437-2400 info@sjoairport.com www.sjoairport.com
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DOMINICAN REPUBLIC Grupo Dupla As the Dominican Republic has deservedly grown to be the most popular tourist destination in the Caribbean, so the demand for high-quality real estate projects has grown. RESEARCH BY
Eurides Lopes
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rupo Dupla is a construction company established in 2001, with the goal of developing, homes to the growing population of the eastern region of the Dominican Republic, mainly within Puntacana Resort & Club, were high end tourists have purchased their second homes (and in some cases, made it their official residence) to enjoy the beach, nature, weather and the general amenities offered by Puntacana Resort. Puntacana Resort is already internationally renowned for being a sustainable golf and beach resort, including over 15,000 acres of customer-built villas, apartments, 5-star hotels, restaurants and its own ecological reserve and organic farm. Since a little over 20 years ago, the eastern region of the Dominican Republic generates
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Santana tells us: “This past year we have completed the construction of the new Playa Blanca development, designed by Dominican Architect, Antonio Imbert. It provides a new and refreshing dinning experience, with a roofed area designed to accentuate the nature of Puntacana, right in front of the beach. The restaurant with its tropical elegance can host up to 200 people.” The success of these projects in turn creates demand for more work. As Daniel Santana explains: “The Dominican Republic has a tourism-oriented economy, so we have and will keep developing in second home real estate. Our country keeps growing as a luxury tourism destination and with that growth come more possible clients. We have seen this potential since the creation of our company,
“This past year we have completed the construction of the new Playa Blanca development, designed by Dominican Architect, Antonio Imbert” the most income for the country, receiving over 70% of the tourism of the island, mainly thru the Puntacana Airport. Given the potential of the region at the time, and the demand for quality developers with permanent/ constant presence in the region, Grupo Dupla had the vision to relocate its operations in the area in the early 2000’s. Even though the main focus of Grupo Dupla has been the development of high-end villas within Puntacana’ s Resort area, through the years it has also incursion successfully into developments of residential buildings and a variety of commercial projects. Daniel Santana, President of Grupo Dupla, lists off a number of projects which exemplify this from luxury homes like Serena 5 and Corales 41 to the Playa Blanca development. As Mr.
therefore we have oriented our work in the heart of tourism in our country, Puntacana.”
Sustainability Grupo Dupla places a particular emphasis on sustainability. Of this commitment, Daniel Santana says: “Our sustainability begins with our designs. We respect the natural architecture of the lot we will be constructing on, taking into consideration the climate, the vegetation and materials that are coherent to the local environment.” A look through the company’s methods, shows that it makes use of roofs and windows in its buildings to maximize light and air flow and diminish CO2 emissions. In addition, most of its homes may be solar power-enabled, taking advantage of Puntacana’s tropical setting.
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“The architects are the creative mind that give shape and personalities to our homes. We work hand in hand with these great people to obtain a final product that measures up to our standards” Partners and Suppliers Grupo Dupla’s has a range of strategic partners and suppliers. Dupla develops designs worked in-house as well as in association with well-known Dominican architects. As Mr. Santana says: “The architects are the creative mind that give shape and personalities to our homes. We work hand in hand with these great people to obtain a final product that measures up to our standards. The architects are committed to our community and its wellbeing, creating
therefore practical architecture that is appropriate to our environment and that enhances its beauty.” Outside of this, it can call on several local partners and suppliers, which provide it with high-quality materials suitable for the finish its buildings require. These include Madeco and Indomaca for wood, Rooftec for roofing. Ferretaria Detallista for metal components and both Hormigones Industriales and Hormigones del Atlantico for the cement and concrete used in its constructions.
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“Grupo Dupla has a lot of plans and projects for the near future. We plan on constructing several commercial and business buildings” Looking Forward Already the most popular destination in the region, the Dominican Republic is outgrowing several of its neighbors. With an expanding population, burgeoning economic growth and record numbers of tourists arriving every year, there is a near insatiable demand for the kind of output provided by Grupo Dupla - in residential, commercial and hospitality. Recently, Dupla is branching out to remodeling and constructing hotel sites in the area. Mr. Santana says: “Grupo Dupla has a lot of plans and projects for the near future. We plan on constructing several commercial and business buildings, and are working on the construction of villas in Corales and Hacienda located in Puntacana Resort & Club. We also plan to have integrated ourselves in the hotel construction business in the area.” In less than 20 years, the company has been part of the development of the Dominican Republic’s success in tourism, becoming number one tourist destination of the Caribbean. The next two decades should be equally as exciting.
GRUPO DUPLA
+1 809-959-0334 info@grupodupla.com www.grupodupla.com
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Las Americ
PREPARING FOR A TAKE OF
The Dominican Republic is the Caribbean’s second largest unspoiled tropical coastline than most of its neigh RESEARCH BY
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cas Airport
FF IN TOURIST NUMBERS
country in terms of landmass, giving it considerably more hbours - totalling something over 1,000 kilometres.
Eurides Lopes
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he Dominican Republic is the Caribbean’s second largest country in terms of landmass, giving it considerably more unspoiled tropical coastline than most of its neighbours - totalling something over 1,000 kilometres. This has understandably made it a tourist hotspot over the past few decades, with growing numbers of tourists making their way to the island paradise. Naturally, this country has had to develop its transport infrastructure to accommodate the influx and this is exemplified by Las Americas Airport (SDQ), managed by Aerodom, a subsidiary of Vinci Airports. 2019 has started well for the airport, with it tying up some significant new deals after only a couple of months into the New Year. In light of this, we dropped by to see why so many airlines are now queuing up to add Las Americas to their roster.
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Background and Overview Located approximately 20 miles to the east of Santo Domingo, the capital of the Dominican Republic, Las Americas celebrates 60 years of existence in 2019, having welcomed its first flights back in 1959. Over the past decade, passenger numbers have grown an average of 5% per year. In 2018, it welcomed a record 3.9 million passengers - and may even breach that in 2019 if its management continues to tie up deals with international airlines. The airport plays a central role in the ambitions of the Dominican Republic
“2019 has started well for the airport, with it tying up some significant new deals after only a couple of months into the New Year”
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LAS AMERICAS AIRPORT
“Las Americas is also home to one of the longest runways in the Caribbean. At 3,355 meters in length, its main runway is capable of supporting Boeing 747s - the most common aircraft among the large international airlines” government to attract more tourist numbers. It came to understand at the end of the 1990s that throughput in its airport was key if this was to be achieved. The upgrading of the airport began with the addition of the airport’s northern terminal in 2007, adding four new gates and world-class maintenance facilities for airlines. Most of the airport’s visitors come from New York, Miami and Madrid with smaller cities such as Panama City, Atlanta, Boston and Orlando also being popular. Las Americas is also home to one of the longest runways in the Caribbean. At 3,355 meters in length, its main runway is capable of
supporting Boeing 747s - the most common aircraft among the large international airlines. This is exhibited by the fact that Las Americas currently hosts over 30 airlines, with wellknown carriers such as Air France, JetBlue, Delta Airlines, United and Iberia being seen making their way down its runways. They bring passengers to and from 33 international destinations - a number which grows year-on-year. In 2018, the latest phase of the airport’s expansion began with a US$25 million investment to implement major improvements in the airport’s infrastructure as part of its
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ongoing modernization and optimization program. This will include a recreational area for passengers, an extended viewing platform, improved security and immigration services, state-of-the-art information systems, new cargo terminal and more.
New Deals As mentioned at the outset, the management team at Las Americas has been busy in the past few months tying up new deals. In January 2019, Canada Jetlines announced that it would provide future service to Las Americas and its sister airports around the Dominican Republic, subject to regulatory approval. This was followed by a deal between the airport and Flycana, which announced in February 2019 that it had selected Las Americas as its base in the Caribbean, from where it would operate short- and mediumhaul routes. Its investment in the new base is expected to reach into the tens of millions. Significantly, Flycana will be the first ULCC (Ultra Low-Cost Carrier) in the Caribbean, potentially revolutionizing travel in the region.
Partners and Suppliers The growth of Las Americas airport has been aided by a group of dedicated partners and suppliers, both local and international. Local partners include the Helidosa Aviation Group, a charter airline founded in 1992, General Air Services, a provider of diversified services to
“The growth of Las Americas airport has been aided by a group of dedicated partners and suppliers, both local and international.�
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airports, and Dama Cargo, a local cargo logistics firm with its headquarters in the airport. In terms of international partners and suppliers, Swissport Dominicana, the local branch of the international logistics giant, handles much of the airport’s cargo and ground-handling, Clear Channel Airports provides revenue to the airport through advertising, Spanish Architecture Team Luis Vidal + Architects have been instrumental in modernizing the airport’s building and interiors, while Las Americas counts on Scheidt & Bachmann/ Intelipark for its information and ticketing systems.
What the Future Holds for Las Americas The investment by Aerodom in Las Americas Airport is not only a vote of confidence in the Dominican Republic, but suggests that they’re preparing to take the airport to the next level. The fact that they’ve added a new cargo terminal illustrates that it’s not just passenger
numbers which are going to increase in the years ahead, but imports and exports too Las Americas role in the local economy is only likely to growth. Recent research by Oxford Economics, a global consulting firm, suggested that tourism contributed a little over 600 million Dominican pesos, through indirect and direct means, and that by 2028, this figure would grow to 900 million pesos - or approximately 50% in just ten years. It’s good to see that Las Americas is well prepared for this transition, and that tourists will be well catered for when landing on this island paradise.
LAS AMERICAS AIRPORT
809-947-2225 / 2297 info@aerodom.com @aerodomrd www.aerodom.com
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SHOWING THAT EXPANSION CAN BE SUSTAINABLE PetroPerú’s Talara Refinery The Talara Oil Refinery, located in a desert district a little over 1,000km from Lima, is Peru’s second largest oil refinery RESEARCH BY
Joseph Philips
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he Talara Oil Refinery, located in a desert district a little over 1,000km from Lima, is Peru’s second largest oil refinery. Since the refinery was first established, at the outset of the 20th century, it has played a central role in Peru’s domestic energy scene. It has an output of around 65,000 barrels per day (bpd), making it one of the largest in the Petroperú portfolio. In addition, it produces domestic LPG, motor gasoline, solvents, A-1 turbo, diesel, kerosene, industrial oils and even asphalt.
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You could be forgiven for believing that Government-owned Petroperú might be satisfied with such an impressive setup, but recognizing the potential of the refinery, it has undertaken a massive upgrade of the refinery. This will not only modernize the Talara Refinery, making it one of the most sophisticated of its kind in South America, but also increase its oil producing capacity to around 95,000 barrels per day - pushing it very close to the top spot in Peru. We decided to take a closer look at the
PETROPERÚ’S TALARA REFINERY
“We decided to take a closer look at the modernization of Talara to understand the complexities involved in bringing a project of this size to fruition”
modernization of Talara to understand the complexities involved in bringing a project of this size to fruition.
Background The history of Talara goes all the way back to 1917, a little over a hundred years ago, when the refinery was first developed by the Standard Oil Company. By 1965, a series of upgrades had brought capacity at the refinery to 65,000 barrels per day, where it has remained ever since. At the beginning of
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SPECIALIZED IN DATA CENTER, AIR CONDITIONING, RENEWABLE ENERGY, UPS, AC / DC ENERGY, ENERGY EFFICIENCY, CABINETS AND SHELTERS Data center design and implementation Air conditioning: precision, industrial and comfort A/C energy: Ups, transformers, tvss, gensets, electric panelboards D/C energy: Rectifiers, inverters, dc-dc converters, batteries Renewable energy: Solar, wind, hybrid Energy efficiency Shelters: E-houses, telecom, control rooms Electronic security
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CIME COMERCIAL CIME COMERCIAL is a Peruvian company specialized in data center, air conditioning, renewable energy, ups, ac / dc energy, energy efficiency, cabinets and shelters. CIME COMERCIAL S.A. implemented an HVAC project in thirteen buildings of the Talara Refinery (all located near the sea and ten of them intended to house electrical equipment associated with the Plant) to achieve adequate conditions of temperature, humidity, air cleaning and overpressure in e-rooms and rooms of various use. For this, chilled water systems were installed in eight buildings and direct expansion units in the remaining five. The installed equipment was: sixteen AERMEC (Italy) Chillers condensed by water, twenty nine chilled water AHU and nine Rooftop direct expansion units, with an installed capacity of 7.537 KW. Due to the severity of the operating conditions, the project also included: - Chemical filtration units, CAMFIL brand, to treat fresh air to be entered in six of the buildings. - Blast valves, TEMET brand, for all incoming and outgoing air from the perimeter of the four buildings located in explosive zone, in order to avoid the entrance of the shock wave of an eventual external explosion. - Epoxy protection for the coils of all AHUs and rooftops units. www.cime.com.pe
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“To provide some indication of the scale of the Talara project, the US$2.7 billion was the largest turnkey project worldwide This all funded by the company’s own finances” this decade, however, plans were announced which would raise its capacity by nearly 50% a hugely ambitious expansion in any industry. In May 2014, after a public tender process, Técnicas Reunidas, S.A. (TRSA), a Spanish general contractor was awarded the Engineering, Procurement and Construction (EPC) contract for the refinery modernisation. TRSA’s previous awarded tenders have included oil refineries in destinations as diverse as Oman, Algeria, Venezuela and its clients include some of
the largest private and government-owned oil and gas companies in the world. To provide some indication of the scale of the Talara project, the US$2.7 billion was the largest turnkey project worldwide This all funded by the company’s own finances. An additional US$765 million will come from several private companies which will be involved in the construction and operation of the new service units at the refinery. The additional funds generated by sales of output - both domestic and international sales - were
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“An additional US$765 million will come from several private companies” enough to convince management at Petroperú that it was a worthwhile investment. The brief for TRSA at Talara is extensive. It includes the expansion and modification of Talara’s existing process units (primary distillation unit, catalytic cracking complex and vacuum distillation unit), the construction of new processing units (diesel hydrotreating, cracked naphtha hydrotreating, vacuum distillation, naphtha
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catalytic reforming, amine and cogeneration, and the expansion and upgrade of the utilities and offsites facilities.
Environmental Impact The modernization of Talara was driven as much by the Peruvian government desire to bring it to the highest environmental standards, as merely expansion for its own sake. Peru has introduced a range of new
environmental requirements (with a maximum sulphur content of 50 ppm) at competitive prices. This is a considerable reduction on the current figure, which has been estimated at close to 1,800 ppm. As many readers will also be aware, operating an oil and gas refinery requires extraordinary amounts of water. On this measure as well, Talara is already showing outstanding results. Petroperú’s 2017 sustainability report shows
“The modernization of Talara was driven as much by the Peruvian government desire to bring it to the highest environmental standards, as merely expansion for its own sake”
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“After 100 years of delivering fuel to domestic and international clients, it would have been easy for the Peruvian government to continue on the same trajectory”
that the plant used nearly 820,000 cubic metres of desalinated water in the previous year - effectively negating the requirement for it to draw water from existing reservoirs and creating a sustainable solution for the years ahead.
Social Impact As mentioned at the outset of this document, Talara is located in a desert area, making it a locality characterized by high unemployment. To tackle this issue, Petroperú has committed to ensuring that 70% of the people involved in the construction and operation of the refinery are locals (referred to as ‘talareños’), many of whom are underskilled. The upskilling and employment of these individuals will continue to make an invaluable contribution to the region. Talara has also benefited - and will continue to benefit - from a range of social programs implemented by Petroperú to improve the lives of Peruvians in a variety of ways. These include educational, safety and health programs. For example, by 2017, 63,000 educational kits have been distributed, 110 students have been awarded scholarships, more than 200 women had taken part in its female leadership program, and over 3,000 participants in an ongoing human rights education program.
Partners and Suppliers While Técnicas Reunidas, S.A. was awarded the tender for the Talara modernization project, several other firms, both Peruvian and international, will contribute to Talara and many of Petroperú’s other projects. The
case of Peruvian general contractor Graña y Montero (GYM S.A.) is indicative. It won a $352 million contract to provide services at Talara, to look after construction, procurement and engineering services at Talara. GYM will be assisted in its endeavours by Cobra Peru, who are also responsible for the large desalination operations at Talara, JJC Schrader Camargo Peru and Kaefer Kostec, two large Peruvian engineering firms. The considerable task of providing electrics to the refinery is being taken care of by CIME Commercial, a Peruvian electrics firm. Finally, U-Peru SAC will provide on- and off-site accomodation for the 3,000-strong workforce at the refinery.
Becoming a standard bearer The scale of the Talara project gives some indication, not only of the ambition of the Peruvian government and Petroperú, but also of its commitment to sustainability. After 100 years of delivering fuel to domestic and international clients, it would have been easy for the Peruvian government to continue on the same trajectory. Instead, it has looked to slash the ppc of its output, and becoming a standard bearer in the process. PETROPERÚ’S TALARA REFINERY
(511) 614-5000 info@petroperu.com.pe @petroperu_sa www.petroperu.com.pe
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POWERING JAMAICA’S FUTURE Jamaica Public Service Company The Jamaica Public Service Company Ltd. (JPS), has been Jamaica’s primary energy company for over 90 years. In that time, it has expanded from a modest energy network with just a few thousand customers, to one capable of serving the country’s roughly 2.8 million residents. RESEARCH BY
Fernando Ruiz
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he Jamaica Public Service Company Ltd. (JPS), has been Jamaica’s primary energy company for over 90 years. In that time, it has expanded from a modest energy network with just a few thousand customers, to one capable of serving the country’s roughly 2.8 million residents. With a current customer base of just over 650,000 accounts, the company is the sole distributor of electricity in Jamaica and has a generating capacity of about 620 Megawatts (MW), provided by a combination of steam, gas turbines, combined cycle, diesel, windfarm and hydroelectric technologies. The Company also purchases electricity from four Independent Power Producers (IPPs).
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“Expanding and improving JPS’ generation, as well as its transmission and distribution capabilities, has not been without challenges.” Expanding and improving JPS’ generation, as well as its transmission and distribution capabilities, has not been without challenges. An island’s electricity system, such as that of Jamaica, is inherently more complicated than that of a mainland system of comparable size. Certainly one of the major considerations at this point is the focus on increasing fuel diversity and the proper integration of renewables. At present, Jamaica ranks favourably among countries with high levels of renewable penetration - a testament to the investments that have been made by the Company and the Ministry of Energy over the years. One of those available renewable resources is
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“Hunts Bay B6 and all the Old Harbour Bay units are scheduled to be retired by the end of 2020,”
wind - which constantly blows over Jamaica, sometimes affectionately referred to by residents as the ‘Undertaker Breeze’ and the ‘Doctor Breeze’. This wind resource will be among the key components necessary, to move Jamaica away from the market risk that comes with importing heavy fuel oil and diesel, towards a future of increased energy security. This is all part of the Caribbean Community’s (CARICOM) energy policy, which factors in energy security, mitigating the effects of ongoing climate volatility, as
well as improving environmental standards across the board. Achieving increased fuel diversity involves continuing evolution of all the energy companies in Jamaica, and not least of them - JPS. CEO Emmanuel DaRosa explains that one of the Company’s key priorities is to find a solution for every Jamaican “through expanding the options available to our customers. That requires an ability to integrate renewables in an effective way and to partner with diverse and innovative providers.”
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He further adds that “One of the facilitators of renewable integration is the procurement of gas”. Finding the right balance is a delicate act for JPS. While their earlier projects depended on heavy fuel, they’re constantly seeking more environmentally-friendly alternatives, while looking to balance this with the economic imperative. At the moment 22% of the electricity JPS supplies is by gas, however, the plan has that increased to around 50% by 2020. This they hope to achieve by
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afullswitchover from oil fuel, HFO to LNG, this program will go beyond 2020. It will decommission all its plants that run on heavy fuel oil, HFO whilst constantly increasing its use of LNG. “Hunts Bay B6 and all the Old Harbour Bay units are scheduled to be retired by the end of 2020,” said Winsome Callum, director of communications at JPS.“However, the Rockfort units are to be retired at a later date, subject to the finalised Integrated Resource Plan, which is being developed by the Ministry of Energy,”
JAMAICA PUBLIC SERVICE COMPANY
“The evolution to renewables at JPS is already having an effect on the culture at the company”
Another example is, the country has a small but growing amount of distribution-connected solar. Present estimates indicate that they’ll have a total of about 110MW of renewables by 2017, with about 80MW of that currently under construction. And then there’s the heat-rate workhorse, which runs on distillate. As more renewable units are integrated into the system, however, it has become clear to management at JPS, that the Company alone cannot provide the full capacity of electricity required, due to its intermittency rates.
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JAMAICA PUBLIC SERVICE COMPANY
“This network has been established over its 90-year history and it continues to be fostered. The list includes both local and international companies”
JPS will, therefore, introduce gas to its combined cycle plant at the Bogue Facility in Montego Bay, Jamaica. This particular project is driven by two motives: to enable the long term reduction in the cost of electricity and pass those reductions on to JPS customers; but also to provide the flexibility that comes with gas, to the system, in order to integrate the 80MW of new renewable units. An IRP (Integrated Resource Plan) is to get underway soon. This IRP is looking at the dynamics of system stability with those intermittent resources and what the business will require to integrate them.
What’s evident from looking at JPS is an ongoing effort on their part to improve on their energy resources and feed that back to its customers. In 2019, the company expects to have some additional gas plants operating, and the government is looking to pursue additional resources through a 37MW solicitation for renewables. When all of the planned resources come online in 2019, management will have a better overview of the dynamics and flexibility of the JPS system and where it stands in relation to the Jamaican Energy Policy, which is aiming for 20% renewables by 2030, but given the
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inroads that JPS is making in this evolution, some are speculating that the target could be reset to 30%. For example, in 2016 alone, the country’s’ renewable energy capacity is set to double. The evolution to renewables at JPS is already having an effect on the culture at the company: the oil-is-the-only-possibility mentality that once existed at energy firms has been replaced with a philosophy which is more open to change. This is having an effect on the bottom line already: in 2014, profits at JPS were up to $23 from $9 million the previous year. This result was achieved through
improvements in operations and is doubly impressive given the continuous slide of the Jamaican dollar against its US counterpart: the currency has experienced a slide of over 30% against the greenback since 2011.
Strategic Partnerships Naturally, JPS cannot achieve all of this without a sophisticated support network of local and international partners. This network has been established over its 90-year history and it continues to be fostered. The list includes both local and international companies. Its local partners have been crucial to optimizing
“It’s encouraging to see that in the midst of such fast-paced change that attention to CSR clearly hasn’t diminished at JPS”
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the company’s value chain in Jamaica. The scale of the JPS operation means that services such as haulage, professional services and chemical sales can all be outsourced to local companies, in turn contributing to stable employment on the island. There’s also a sizeable list of international partners on the JPS books, which not only provides the firm with access to economies of scale but also exposure to the best equipment, know-how and advances in the industry as they occur. Energy companies need to keep abreast of changes arguably more than companies of other industries. Its international partners provide it with gas turbines, pumps and controls, consulting services, as well as parts and maintenance. These partners include Quantex International Limited, GE International Parts, IMCA Jamaica Ltd, Corrosion Control Limited and Wood Group/Ethos Energy.
American based New Fortress is also supplying 60,000 t/yr of LNG from another FSRU for JPSCo’s 120MW Bogue power plant. The company looks to expand its offering in the region with the completion of a second FSRU installation in Jamaica in December 2018 that will supply 200,000 t/yr of LNG to a 190MW power station that utility JPSCo plans to commission by June 2019. These contracts are especially important in relation to the JPSco’s goal of a total switchover from Oil fuel, HFO to LNG at its plants.
Community Engagement JPS work in the community starts with its workforce. It has instilled a set of values in its 1,600 workforce and work practices using the acronym ASPIRE (Accountability, Service, Passion, Integrity, Respect and Excellence). One of its strategic objectives
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is to ‘attract, develop and retain the best talent in Jamaica.’ It has enhanced its employee engagement program and now records over 80% total satisfaction among its employees, a number which is on an upward trend. Likewise, the firm continues to invest substantially in communities across Jamaica in education, and youth development through the JPS Foundation. In 2013, the Foundation included an Early Childhood Nutritional Support Program which benefitted more than 26,000 children and opened a partnership with the United Way. Whilst in 2018, the company in partnered with USAID and John Hopkins University of the USA, hosted a “Train the Trainer Enterprise Entrepreneur Training” as part of the Social Intervention initiatives that will be used to train customers from the company’s Community Renewal project areas. The expectation is that this initiative will empower residents in these communities to be more efficient entrepreneurs, with the capacity to be socially mobile. It’s encouraging to see that in the midst of such fast-paced change that attention to CSR clearly hasn’t diminished at JPS. Indeed, it is part of the change that continues to drive the firm forward. Satisfying customers continues to be the most important part of our business. Our commitment to Corporate Social Responsibility supports our customer, our community, and Jamaica. It is well established that the utility rises and falls with the fortunes of its market. We are committed to supporting Jamaica at all levels.
JAMAICA PUBLIC SERVICE COMPANY
1-888-935-5577 info@jpsco.com @myjpsonline www.jpsco.com
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