Business Review Australia & Asia June 2016

SPECIAL REPORT

TOP 10 AUSTRALIAN FRANCHISES

WWW.BUSINESSREVIEWAUSTRALIA.COM

JUNE 2016

AUSTRALIA’S TOP

TELECOMMUNICATION COMPANIES +WHY CHINA

SHOULD BE CONSIDERED AN AUSTRALIAN STARTUP TARGET

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IN THIS ISSUE

EDITOR’S COMMENT

H E L L O A N D W E L C O M E T O the June issue

of Business Review Australia & Asia, Having spent just over a year editing our sister publication African Business Review I am excited to take on a new challenge and showcase the region’s interesting and nuanced business environment.

This month we take a look at why Australian businesses should consider China as a viable and rewarding start-up target. The ‘workshop of the world’ can offer a great return on investment if the business plan is carefully executed – read on to find out more. We also take a look at Australia’s top telecommunications companies and explore the factors that have got them to the very top.

Last but not least we examine Australia’s 10 best franchises.

From everyone at Business Review Australia & Asia – we hope you enjoy reading the magazine and look forward to hearing your views on Twitter via @BizReviewAU.

Nye Longman Editor Nye.longman@bizclikmedia.com 3

CONTENTS

FEATURES

6 Finance

Why China Should be Considered an Australian Startup Target

14 Top 10

Best Australian Franchises

26 Technology

Australia’s Top Telecommunications Companies

COMPANY PROFILES

56 John Holland Group

TECHNOLOGY

104 Unique Urban Built

34 CyberPower Systems (Oceania Division)

114 Gateway WA

46 True IDC Co.,Ltd

CONSTRUCTION 56 John Holland Group 70 South Australian Government Forward 80 Infrastructure in Indonesia 92 Parklands Project by Grocon

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June 2016

EDUCATION 128 University of Wollongong 144 Deakin University 160 Griffith University 174 Oracle

MINING 186 MACA

46 True IDC Co.,Ltd

92

Parklands Project by Grocon

186 MACA

128 University of Wollongong

5

FINANCE

Why China should be considered an

AUSTRALIAN

STARTUP TARGE

WRI T TEN BY: A LICE YOUNG

N

ET

FINANCE

THERE WAS A time when people thought anyone suggesting opening a business in China was in cahoots with a government-run program.

Fast-forward to today, and the idea of starting a business venture inside the mainland Asian giant is now considered both practical and necessary for any kind of international 8 June 2016

presence in the Pacific business theatre. Make no mistake, the Chinese government never stopped being involved in its markets, they have just taken a far more proactive role versus a regulatory one, which has in turn opened up a number of vast opportunities for international and Pacific businesses to work in.

GOVERNMENT SUBSIDIES It is no surprise that the large number of sub-markets in China are primarily focused on bringing business, resources, and trade activity to their region to stimulate their local supply and demand elements. In this regard, the government plays a traditional subsidy role to help jump-start as

well as incubate new business.

Interestingly, and of particular attention to Australian companies looking to start a presence, these subsidised start programs are open to both domestic and new foreign technology players as well as those who can create new ways to utilise existing Chinese product lines. In 9

FINANCE

Central Business District in Beijing, China short, both Chinese and foreign players are eligible for subsidy for market entry. That said, these programs don’t exist in every area of China’s economy. One has to look for the right industry and sometimes geographical area to find these.

The best way to start is to first make a foray into contact with the local government of the geographical region that your business might want to set up shop in. This will put you in place with the right officials from 10 June 2016

the start who can then usher your company into place within the right market and with the right players for support. The Chinese are well aware of the benefits of capital investment and business start-up, seeing their side of the picture as one of job creation, increased wealth in the immediate local area with greater payrolls, and a larger manufacturing base. The start-up support/subsidy details are not going to be publicly detailed, such as on a website page.

BUSINESS REVIEW AUSTRALIA & ASIA

Instead, these opportunities are found through the local officials who open the gateway into such programs.

Alternatively, if you don’t feel you have enough confidence working directly with the local government, a company should then leverage Australian government resources to make connections and network for market entry as well. These home offices will often be connected in advance with their Chinese counterparts and can help create a conducive path for start-up entry and investment in the mainland.

SPECIFIC MARKET TARGETS For market-specific opportunities new ventures still have a number of areas open to them that are clearly in the birth phase of the business cycle. That promises both lots of new possibilities as well as a lot of challenges for firsttime players. One of the key aspects an Australian player should decide early is whether it’s going to be a manufacturer, a business to business player, or a direct retailer to Chinese markets. Some players try to be both, but it’s a highly complex position to be in, essentially running two different

“THE TECH INDUSTRY CONTINUES TO RELY ON CHINA FOR MANUFACTURING, BUT THE POPULATION IS ALSO BECOMING A BIG RETAIL BASE AS WELL FOR THE SAME GOODS” businesses in China at the same time.

The education market is a highdemand area for retail services.

Chinese culture has been focused on the family for thousands of years. As a result, educational resources that give a child an advantage in learning and training are going to attract interest.

Of course parents want to see their children do better than they did. But in a country where most people rely on a retirement from their own savings, their children also become the income source that takes care of them in their later years as well. Successful children obviously mean a successful 11

FINANCE retirement. Ergo, education is like gold to many at the retail level. This is augmented by how competitive the educational system is in China for entry into the right school. Again, tutoring and education services meet a large demand.

The medical support market is another booming area. China is a country with one of the largest populations in the world, and one that is ageing. As a result, it has a huge audience that needs and wants services from the health care industry.

Advances in modern medicine are well understood by the Chinese, and they want their share of longer life as well.

Medical device makers and suppliers, as well medical service providers are both seeing big market potentials, both to consumers and to other businesses. And the elderly care area continues to grow the fastest with the growing aged population in China.

Farming and agriculture are a mainstay of China’s infrastructure, providing the food that feeds and supports the country’s 1.3 billion people. China’s government and agricultural industry continue to look for ways to make farming produce 12 June 2016

Business District of Hong Kong more with the same or less, increasing efficiencies, and improving rates of harvesting through automation.

Industrial equipment providers, genetics, and food supply players are going to see a lot of discussion and interest in their products and services, which is likely to increase over the next few years.

With one quarter of the country open to the ocean, oceanic and aqua technology are becoming a priority. Potable and drinkable water

BUSINESS REVIEW AUSTRALIA

is precious in China and growing in demand due to burgeoning populations. Many of the current water systems have not kept up with the fast rate of growth in the country.

Further, businesses that are waterdependent have poisoned a number of water sources or consume significant supply regularly.

So equipment and services that produce new, increased supplies of fresh drinking water are going to win big in the mainland nationwide.

Finally, the tech industry continues to rely on China for manufacturing, but the population is also becoming a big retail base as well for the same goods.

In fact, one estimate pegs China’s demand for tech as growing by 20 percent annually.

This includes aspects of e-commerce as well. And, anyone who has a business way to clean up China’s pollution problem on land, water and air, will be set up for job security for at least the next 30 years if not longer.

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TOP 10

TOP 10

AUSTRALIAN FRANCHISES WHILE AUSTRALIA IS NO STRANGER TO MULTI-NATIONAL FRANCHISES, THE NATION’S HOME-GROWN BUSINESSES STILL DOMINATE IN THE MAJORITY OF SECTORS

Franchises, particularly restaurants, are very popular in Australia: the Franchise Council of Australia estimates that there are more franchise systems per capita than any other country, with 1,160 franchise brands and over 79,000 franchise units for a population of 23 million. While you can walk down a busy street

in downtown Brisbane or Sydney and find a McDonald’s, Subway, or other American staple the topperforming franchises are those with native origins as 86 percent of the most successful franchises are Australian. Here are the top 10 most promising franchises from down under.

Written by: Business Review staff 15

TOP 10

10

POOLWERX

Founded in the Brisbane area with over 20 years of brand history, Poolwerx is Australia’s most successful pool cleaning franchise.

With 240 franchises and 84 retail outlets serving 307 territories, Poolwerx also has plans to open 300 stores in the Sunbelt region of America. Founder John O’Brien has commented on this massive

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June 2016

opportunity: “The US pool industry is a disorganised market. It’s where Australia was 10 to 15 years ago,” he says. “Generally, the market in America is a single guy with a pole and a truck. It’s not time-efficient or reliable.” Poolwerx employs a modern automatic cleaning system that is checked once a month by a technician, taking the hassle out of pool maintenance.

FOR MORE INFORMATION >>

BUSINESS REVIEW AUSTRALIA & ASIA

9

BATTERY WORLD

With 77 stores nationwide and growing, Battery World estimates to have received over $1 million of editorial space for their battery recycling program. The franchise’s national marketing manager stated, “Battery World has to battle consumer perceptions that they don’t necessarily need that many batteries and getting consumers to come into a store is the hardest step.” By getting customers to drop off their batteries in person, Battery World not only receives excellent press for their environmental reasons for the recycling initiative, but this win-win tactic also gets customers into stores as dropping off old batteries can’t be done through an app.

FOR MORE INFORMATION >>

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TOP 10

8

FOODCO

The Foodco Group owns the popular cafe franchises Muffin Break, Dreamy Donuts, and Jamaica Blue, and the franchisor is best known for its training programs and superior employee organisation with accolades from the Franchise Counsel of Australia.

The Counsel’s general manager Kym de Britt stated: “They have an excellent set-up for trainees.

They’re well organised and have good, working systems,” having cited that typically franchisees are prone to disorganisation. So franchisees receive two weeks of intense training and so do all employees ranging from counter people to office managers. 128 Jamaica Blue stores have been opened in southeast Asia as well as 275 Muffin Break outlets across Australia, New Zealand, the UK, and India.

FOR MORE INFORMATION >>

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June 2016

7

COFFEE CLUB

Coffeehouse franchise Coffee Club has been enjoying vast growth with over 270 stores in Australia and Asia-Pacific region. What makes Coffee Club stand out from other coffee chains is their Six Star Consistency Program, that compares how well all the stores perform so that the franchisees can have a way to benchmark their revenues and operating costs, as well as brand engagement and other key metrics to ensure a successful franchise and healthy competition among franchisees.The six stars stand for progress report, business development review, mystery shopping, comparative growth, sales model and product alignment. Joint Chief Executive Dominic Gallo says: “It’s a simple system, but by documenting each benchmark, it ensures improvements across the network.”

FOR MORE INFORMATION >>

TOP 10

6

MAD MEX

Voted “Best Mexican in Australia” in the Lifestyle Channel’s “I Love Food Awards” Mad Mex Fresh Mexican Grill is a staple in Australian fastcasual franchises. Since Mexican food and fast-casual chains are two of the fastest-growing retail categories in Australia, a Mad Mex franchise is a wise investment.

With a trend towards healthier fare that fast-casual restaurants are more likely to offer than traditional Mexican restaurants, founder Clovis Young told Hospitality Magazine: “We probably helped to change the 20

June 2016

perception of Mexican food from greasy, unhealthy party food that you’d only eat once a quarter if you couldn’t avoid it, to something you would happily have three times a week and feel good about because it is that much healthier. The quality is there.” An estimated 10 stores open every year, with its most aggressive growth being 35 stores in a 16-month period. The founders also chalk their success up to not having to answer to shareholders, as Mad Mex is privately owned by two people.

FOR MORE INFORMATION >>

BUSINESS REVIEW AUSTRALIA & ASIA

5

GUTTER-VAC

Gutter-Vac is Australia’s premier gutter cleaning service with 45 locations - it aims to make homeowners’ lives easier by offering gutter cleaning and other home services like power-washing with their own proprietary equipment and patented ThunderVac Technology Process. While growth has not been as rapid as other franchise

sectors due to Australia’s fairly mild climate, Gutter-Vac has managed to position itself as the nation’s top gutter cleaning service when there wasn’t even a “gutter cleaning” category in the Australian Yellow Pages and no such business existed before. The franchise is looking to expand into the UK and Europe where there is more demand for gutter cleaning services in their deciduous climates.

FOR MORE INFORMATION >>

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TOP 10

4

GELATISSIMO

Gelatissimo, a hand-crafted gelato franchise found throughout Australia as well as Southern Asia and the Middle East, is a promising investment as joint executives Marco and Dominic Lopresti have come up with innovative ways to keep product quality up and logistics costs down. Logistics are always more complicated when dealing with a temperaturesensitive product like fresh gelato: major ice cream makers use factories and cold transport systems that rely on preservatives, but a fresh product that customers are willing to pay more for is harder to transport. The Lopresti brothers fashioned a kit production system employing raw ingredients and gelato machines to cut down on waste and give franchisees an edge over other gelato shops. What better way to do so than have fresh gelato made in-house?

FOR MORE INFORMATION >> 22

June 2016

BUSINESS REVIEW AUSTRALIA & ASIA

3

ROLL’D

Since 80 percent of Australia’s population lives in the country’s five largest cities, it’s no surprise that street food franchises have become a viable investment.

Roll’d specialises in traditional hawker-style Vietnamese street cart fare like rice paper rolls, pho, Vietnamese salads and banh mi sandwiches. The founder, Bao Hoang, was looking for an

alternative to sushi for a meal out and decided that his mum’s traditional Vietnamese recipes were just what the public was looking for. He wound up being right as Roll’d went from 15 new stores in 2013 to 28 in 2014, and expects to have 100 by 2016. Hoang says, “People were clearly looking for an alternative [to sushi and burgers], and with ours still being a fresh, fast and healthy option, we are very well received.”

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TOP 10

2

SKINNY’S GRILL

Skinny’s Grill is a hot new franchise that is looking to corner the market on healthy fast food, particularly for customers following low carb diets. The franchise also offers gluten-free, vegan, and vegetarian options as these four groups of customers often have their needs and wants ignored by other food chains. CEO and founder James McGovern has recognised the demand for healthy prepared

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June 2016

food and realises the huge upside potential. “We’re targeting a mass market,” says McGovern.

“Young families, mums and bubs, and the health (conscious) market as well.” Skinny’s Grill owns the intellectual property for its low-carb recipes which will make it harder for competitors to attempt replicating them, and also offers fund assistance to new franchisees. Twenty new franchises are expected to open in New South Wales alone in the next year.

FOR MORE INFORMATION >>

BUSINESS REVIEW AUSTRALIA & ASIA

1

BAKER’S DELIGHT

Baker’s Delight was established in Melbourne in 1980 and is a household name in Australia with its signature Cheesymite Scroll.

The bakery became a chain in 1988 when the founders came to own 15 bakeries by then and decided to expand into other parts of Australia as well as New Zealand and Canada. Thousands of Cheesymite Scrolls later, Baker’s Delight has won Food Retailer of the Year as well as the Australian Franchise System of the Year award several times and was named one of the top 10 retailers in the Asia Pacific Top 500 Retailers awards. There are over 600 stores worldwide and a Baker’s Delight franchise carries the brand recognition and excellent baked goods that will ensure a profitable investment.

FOR MORE INFORMATION >>

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TECHNOLOGY

AUSTRALIA’S

TELECOM

COMP

Business Review Austral exciting and ever-chang WRI T TEN BY: BUSINESS RE V I

TOP

MMUNICATIONS

PANIES

lia explores the ging world of telcos E W S TA FF

TECHNOLOGY

DISCLAIMER: In trying to determine the five best telecom companies in Australia, there can be some discussion and disagreement about the criteria used to make these choices. You can evaluate and rank these companies by size, profits, how many people they serve, how well they market their services, as well as their

28 June 2016

reputation. Yet, many of those things can change rapidly. A new leader can decide a company’s future lies in a different direction, so profits drop while they focus on infrastructure, then they spike upwards as that investment and leadership paid off. As of now, the five top companies are:

BUSINESS REVIEW AUSTRALIA & ASIA

5

AAPT

As well as one of the best, AAPT is also one of the largest telecommunications companies in the country. A merger a few years ago with TPG increased its share in the Australian market, as well as giving it access to more inter-capital fiber network. This has increased its involvement in both metropolitan and international network which has

make AAPT one of the top telecom companies in the country.

AAPT is led by David Yuile who serves as the CEO. He took the position after serving as the chief operating officer at the company, and he was the leader of a network agreement with PowerTel which re-engineering and simplification of their service. The company employs 750 people and is located in Sydney and they specialise in fixed telephony, mobile telephony, internet access, leased lines, and data transmission.

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TECHNOLOGY

4

M2 Telecom

Often referred to as M2 Group, the company provides more traditional services to its customers, as well as providing next generation telecommunication products and services. M2 Group focuses on consumer, business, and wholesale telecommunication and is a major player in Australia of all three market types.

Although M2 Group sells to all three groups, its sales team is focused largely on small to medium sized businesses, as well as families and individuals with an intention of growing by providing services with smaller contracts.

30 June 2016

The leadership of the M2 Group consists of Geoff Horth who serves as CEO, Richard Correll who serves as the Chief Financial Officer, and John Allerton who serves as the Commercial Director. In 2015 the M2 Group employed 3,300 and has an annual revenue of $1.2 billion.

After M2 merged with Vocus, the company was valued at $3.9 billion. In December 2015, M2 had $55.1 million in profits over the previous six months and Vocus had profits of $27.4 million.

The company now has 471,000 broadband subscribers, which is good enough to make the top five of this list, but it is number four in the number of subscribers, and far behind number three based upon the number of subscribers to its services.

BUSINESS REVIEW AUSTRALIA

3

Vodafone Hutchison Australia

Just as its name indicates, this company was made after a merger of Vodafone Australia and Hutchison Australia. Two of the better known brands prior to their merger, and now one of the biggest and well respected brands in the country.

From this merged company come Crazy John’s and Vodafone, two of the most noteworthy brands for electronics and mobile devices.

The company has a reputation and a history of being on the cutting edge of the telecommunications business, as Hutchison was the first company to introduce a 3G telecommunications

network in Australia back in 2003.

They continue to be known for striving to find new ideas to improve their brand.

The CEO of Vodafone Hutchison Australia is Inaki Berroeta. The company employs over 4,500 people and its headquarters is in North Sydney. Vodafone Hutchison Australia has 5.4 million customers involved in different telecommunications services.

In 2015, the company reported their revenue had grown $1.77 billion which was an increase of 2.9 percent from the previous year. It also reported that more and more customers are taking the company’s higher end plan which is adding to their profits and some speculate it could also be a sign of a robust economy.

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TECHNOLOGY

2

Optus

Singtel Optus Pvt Ltd is a subsidiary of Singtel, which is a Singaporean telecommunications company. Optus has its own network which it uses to provide its services so Optus does not need to lease lines and poles, and it has a greater control of its future.

Optus has a large presence in the telecommunications market in Australia with wholesale services and a large footprint in the retail market.

It also provides broadband, dial-up, and wireless internet to its customers.

Optus is led by Chairman Paul O’Sullivan, and CEO designate Allen Lew. 32 June 2016

The total revenue through March of 2013 is $8.93 billion, and its net income through March 2013 was $764 million. The company employs more than 8,700 people.

Optus has 9.38 million customers and recently saw its subscribers drop 54,000 people as competition ramped up from other companies like Telstra and Vodafone Hutchison Australia. Telstra is however growing in subscribers who are post-paid by adding 102,000 compared to Vodafone Hutchison Australia which grow by 32,000 at the same time.

BUSINESS REVIEW AUSTRALIA & ASIA

1

Telstra

The largest telecommunications company in Australia is Telstra.

Telstra has been involved in building and operating telecommunications networks in Australia and some

outside of the company. It is also involved in marketing mobile, voice, data, pay television, and other entertainment products and services.

Telstra’s CEO is Andy Penn and the CFO is Warwick Bray, both respected in the industry for their steady leadership and willingness to embrace new technology. The revenue as of 2014 was $26.3 billion, the profit as of 2014 was 4.3 billion, while the total assets were $39.36 billion.

Telstra employs nearly 32,000 people.

The headquarters of the company is located in Melbourne.

Telstra estimates that they provide 16.9 million people mobile service, they provide 7.2 million people with fixed voice services, and they provide 3.3 million with broadband.

The company began by providing telegraph services in 1854 and they now provide 4G network services.

The telecommunications industry in Australia is robust. Many companies see growth which is important in providing services to the population of the country and keeping many people gainfully employed.

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CYBERPOWER SYSTEMS

A

power surge or interruption can have devastating effects—and power protection product suppliers provide the most important lines of defense against these critical issues. CyberPower Systems is a top tier global power protection vendor supplying uninterrupted

power supply (UPS) units, power distribution units (PDUs), surge suppressors, automatic transfer switches, power management software, preventative maintenance, other related services and more to thousands of clients around the world. Since 2009, CyberPower Systems has been finding success

Taipei Headquaters Office Building

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June 2016

M A N U FA C T U R I N G

in supporting clients across Australia, New Zealand, and the Pacific Islands through its Oceania division.

“We have a strategic approach, in regards to having an in-depth understanding of our customers and their problems relating to the power industry,” said Brad

Andrews, managing director of CyberPower Systems Oceania.

“We look at how we can provide solutions to the market that are not only addressing these issues, but are looking at the future and adapting to the changes in power technologies to provide best of breed solutions.”

w w w . c y b e r p o w e r. c o m

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N O R T H T E X A S M U N I C I PA L WAT E R D I S T R I C T

ASI Solutions National sales conference

KEEPING UP WITH THE MARCH OF PROGRESS Technology is a swiftly evolving field, and a business like CyberPower Systems must stay ahead of the latest innovations in order to keep pace with its clients’ requirements.

To achieve this, the company takes great care to keep research and development a top priority.

“We’ve got a dedicated R&D department in Taipei, Taiwan, with over a hundred engineers focused on the research and development 38

June 2016

of software, engineering, hardware, safety, electronics and quality control,” said Andrews. “With this commitment, we are bringing the highest quality products with the most competitive specifications to market.”

With its new office and experience centre on the way in Brisbane, CyberPower Systems will be able to invite its returning and prospective clients to immerse themselves in the possibilities and logistics of power technologies on the cutting edge.

M A N U FA C T U R I N G

“Along with a new office, with a boardroom and training facilities for our partners, we will also have a customer experience centre where we will demonstrate our products— including UPS systems, power distribution and also the automatic transfer switches—in a live environment with a virtual setup,” said Andrews, explaining the value of clients being able to experience this technology at work up close.

“The virtual environment displays to them an idea of how they would set these units up on site, what applications they would be used for, and how they would address a client’s problems,” he added.

“It is also to show an interface of our software, so that clients can actually see how comprehensive our software is and what its different features can do.”

NEW TRENDS IN TEC H N O LOGY A N D POWER DISTRIBUTION The role that CyberPower Systems and its products play in the technology sector give the company a unique perspective on upcoming

IT trends. This insight allows CyberPower to tailor its own focus to anticipate and cater to the varied needs of its clients.

“What we see at the moment is quite a migration to the cloud,” said Andrews. “This means that a lot of on-premise equipment will start to go to a data centre—data centres are a very big emerging growth market in our industry right now.”

From corporations to small w w w . c y b e r p o w e r. c o m

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ENERGY CORRECTION OPTIONS

YOUR POWER QUALITY PARTNER

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home offices, businesses are relying increasingly on data centres for critical information and daily operations. CyberPower Systems has responded to this trend with its latest launch of large 3-phase UPS systems designed specifically for data centres as their capacities increase and their power protection requirements grow more demanding. “We’re seeing some excellent surges in growth with these new systems within the data centre space,” said Andrews.

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GOING GREEN IN THE IT SECTOR “More and more companies are becoming conscious of green practices and energy saving technologies,” said Andrews. More than 50 per cent of consumers consider “greenness” as a factor when selecting a supplier to partner with, according to a recent research paper from CyberPower Systems, while a full 80 per cent of executives cite green IT as an important subject for their organizations.

CONSTRUCTION

C O M PA N Y N A M E

“As utility power is normal over 88 per cent of the time, the GreenPower UPS™ operates primarily in its cost-reducing bypass mode. As a result, users will enjoy significant energy cost savings with the adoption of GreenPower UPS™ Technology” – Brad Andrews, managing director of CyberPower Systems Oceania 42

June 2016

As a vendor that takes pride in its green IT status, CyberPower Systems is fully committed to helping its clients reach their own efficiency and sustainability goals. This is achieved through such practices as research into more sustainable lithium-ion battery options and its patented GreenPower UPS™ Technology,

M A N U FA C T U R I N G

an advanced system mode. As a result, users MARKET PRESENCE IN OVER 100 designed to create high will enjoy significant COUNTRIES performing data centre energy cost savings with the efficiencies while delivering adoption of GreenPower UPS™ clients up to 75 per cent savings Technology.” on their energy costs compared to CyberPower Systems also conventional UPS models. pays attention to sustainability “The GreenPower UPS™ throughout the life cycle of its efficiently bypasses the transformer products, offering clients discounts when utility power is normal,” reads and one-stop-shop solutions CyberPower’s introduction to the for replacing UPS systems and new technology. “As utility power is batteries while disposing of normal over 88 per cent of the time, older models in a local and ecothe GreenPower UPS™ operates conscious way. “Other green primarily in its cost-reducing bypass features we have are packaging w w w . c y b e r p o w e r. c o m

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CYBERPOWER SYSTEMS

“We are a smart dynamic adaptive company that listens to its customers and then delivers on its promises—we do that very well.”

– Brad Andrews, managing director of CyberPower Systems Oceania

and components that take into account best principles and practices in green IT, and making sure that wherever we can we’re using materials that are going to be renewable and environmentally friendly,” said Andrews. “All the way through our manufacturing process, we have a keen eye on the green side of IT and manufacturing.”

CY BER POWER SYSTEMS: PRESENT AND FUTURE The traits that set CyberPower Systems apart from its competition are the same as those that help CyberPower Systems maintain 44

June 2016

strong relationships with its client base year after year. “I think we have a very thorough understanding of our customers’ needs,” said Andrews. “We are a smart dynamic adaptive company that listens to its customers and then delivers on its promises—we do that very well.”

M A N U FA C T U R I N G

Company Information NAME

CyberPower Systems (Oceania Division) INDUSTRY

Technology PRODUCTS

UPS systems, PDU, ATS and total power protection products manufacturing E S TA B L I S H E D

1997 MANAGEMENT

Those traits also promise to help carry CyberPower Systems forward into the future as it continues to build on its portfolio, ramp up marketing to bring its support to new regions, and develop its network of trusted partners to provide true end-to-end turnkey solutions to its clients.

“We’re in an ever changing market,” said Andrews. “It’s very exciting times now.”

Managing Director at CyberPower Systems Oceania: Brad Andrews Regional Sales Manager NSW / ACT: Shannon Dowden

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ASIAN expansion Written by: Nell Walker Produced by: James Pepper

“Our key differentiation factor is not technology; we’re not Google, and we’re never going to be the Facebook of the world.

We’re going to build talent using Asian diversity. I call myself a change agent – that’s what I do.

My expertise is transformation”

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T R U E I D C C O . , LT D

True IDC, an off-shoot of Ascend Group, is Thailand’s leading international data centre and cloud services solution provider, priding itself on bringing global partners within reach of Southeast 48

June 2016

TECHNOLOGY

Supparat Sivapetchranat Singhara na Ayudhaya, Chief Product and Technology Officer for True IDC, describes how the company has cornered the local market with an Asia-focussed business model

T

rue IDC, an off-shoot of Ascend Group, is Thailand’s leading international data centre and cloud services solution provider, priding itself on bringing global partners within reach of Southeast Asian businesses.

Established in April 2003, the company now boasts multiple centres in Bangkok, across Thailand, and other countries in Southeast Asia. Already providing platforms for Amazon Web Services, Google Chromebook, Microsoft Office365, Huawei Simply Cloud, Beedoo, True IDC Share, and Avaya Teleconference Solutions, True IDC aims to be the leading digital economy enabler in the ASEAN Economic Community.

Supparat Sivapetchranat Singhara na Ayudhaya is Chief

Product and Technology Officer at True IDC. Singhara na Ayudhaya had previously been the first Thai to take on a global role at Thomson Reuters, and during that time, he was accountable for many international teams within the company. Singhara na Ayudhaya considers himself a hybrid, speaking multiple languages, and in working across various groups, he discovered the true business extent of ‘global’.

“Global is no longer New York, it’s no longer London, it’s no longer Tokyo,” he says. “It’s Asia – Shanghai, Dubai, Delhi. A significant portion of the Thomson Reuters code deployed globally was based in Bangkok; a lot of people outside the company don’t know that.

There’s untapped talent here. I

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saw new opportunities with this knowledge, so I made the decision to move from this multinational corporation to Ascend,” he notes.

Singhara na Ayudhaya’s role now is based in developing products for the local market in Thailand and Asia, increasing the speed of the technology, and evolving infrastructure platforms. The role is unique in that most companies would separate the product and technology development,

but as Singhara na Ayudhaya has the benefit of a global perspective, the company chose to merge the responsibilities.

Targeting the market In addition to the Enterprise segment, True IDC develops within the local market by aiming for SMEs. He states, “We are targeting emerging markets, like Thailand, Cambodia and Myanmar. SMEs are the main drivers of the economy

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TECHNOLOGY

there. A lot of players try to capture them, but it’s difficult. Thailand is in a unique position in that its SMEs have a high adoption rate of mobile phones.

It has a population of 60-70 million, and only 30 million of those are online, yet there are around 80 million mobile phones being used across the country. This gives us great opportunities.

We’re in a unique position in being the only cloud service provider that’s also a telecom. Even the big cloud players like Amazon lack connectivity capability, thus empowering a mutual partnership between True IDC and Amazon, Google,

“The key for us is our leadership team, and the leadership team needs to navigate an ever-changing business climate” – Supparat Sivapetchranat Singhara na Ayudhaya, Chief Product and Technology Officer for True IDC

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“The key for us is our leadership team, and the leadership team needs to navigate an ever-changing business climate” Thanasorn Jaidee, General Manager, True IDC (Left), Supparat Sivapetchranat Singhara Na Ayuthaya 52

June 2016

TECHNOLOGY

Microsoft, and Huawei. We have the connectivity and the existing customer base to expand upon.”

True IDC enjoys the advantages of having the required services in place already, ensuring that market shares are also well-positioned, despite the fact that larger companies may have more advanced technology.

However, these companies do not necessarily view ASEAN as a key market in the same way. True IDC is making advancements with strategic partnerships that will drive more business to Thailand.

Skill and diversity In any emerging market, Singhara na Ayudhaya says, finding the required skill level is a challenge. He adds, “The experience is out there. The skills are out there. The knowledge is out there. The key thing for us is attracting the right talent that can complete globally as the ‘digital economy’ is borderless – that’s part of the reason I was brought here. We’re looking at people with global talent who can understand the local market but communicate globally. The key for

us is our leadership team, and the leadership team needs to navigate an ever-changing business climate.”

Singhara na Ayudhaya states that while Asian culture is respective to a very command-and-control approach, Western culture is more about engagement, and so True IDC tries to leverage a culture of various comforts, ensuring that what the young company lacks in experience, it makes up for by achieving its goals more quickly.

One such project this mindset has allowed is the Simply Cloud Public Cloud – Thailand’s first cloud service – which allows users to manage their own data at a reasonable price. “The cloud will enable a bigger market in Thailand, and in Cambodia,” says Singhara na Ayudhaya.

“We are also launching the first cloud software marketplace platform tailored for SMEs. The marketplace will be the region’s first platform connecting start-ups and SMEs. It’s key because the adoption rate of cloud services is not necessarily just going to be

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“Diversity is about connecting the change together to generate opportunities, and to make intelligent bets in the region” – Supparat Sivapetchranat Singhara na Ayudhaya

the infrastructure in the service space, although there’s a higher mobile penetration in Asia than in Europe or the US. Our play is that we provide a scalable platform that connects emerging start-ups with SMEs in the region. Capturing the market is fundamentally a KPI, as well as being able to offer the right services on tap.”

True IDC has entered into a joint venture with SUPERNAP, a tier four data centre. Next year, Thailand’s own branch of SUPERNAP will open, which is the first outside the US. Singhara na Ayudhaya points out, “Now what this does is lay the foundation. It guarantees 100 percent uptime data centre service within the region and will support growth across Cambodia, Myanmar, Vietnam, and of course Thailand.

From a connectivity standpoint, it puts us in a strategic position. We have to be reliable, and to be reliable we have to guarantee SUPERNAP 100 percent uptime asset running. Banks have already signed up to these services.”

Expansion Just two years ago, True IDC was only in Bangkok; now, it is based in Myanmar and Cambodia as well as Vietnam, and the company is exploring other markets such as Indonesia. Each country has its own multimarket strategy depending on local demand.

In Myanmar, political instability has made

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people hesitant about data centre and cloud business, but it is a good place to invest in.

Cambodia lacks the business traction of Thailand but is maturing all the time, and in Vietnam, the focus is on the marketplace rather than the infrastructure.

“The key lesson is how do you get the ability to connect the dots,” Singhara na Ayudhaya says. “Our key differentiation factor is not technology; we’re not Google, and we’re never going to be the

Facebook of the world. We’re going to build talent using Asian diversity.

I call myself a change agent – that’s what I do. My expertise is transformation. We make things happen. For us to compete, it’s about diversity. We provide a very insightful perspective. Technology is about change, but diversity is about connecting the change together to generate opportunities, and to make intelligent bets in the region is something I am personally driving towards.”

Just two years ago, True IDC was only in Bangkok; now, it is based in Myanmar and Cambodia as well as Vietnam, and the company is exploring other markets such as Indonesia

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BUILDING VALUE With industry leading capabilities and the support of a new parent company, John Holland is poised for an exciting new future Written by: Sasha Orman | Produced by: Vince Kielty 57

JOHN HOLLAND GROUP

I

n Australia, New Zealand and South East Asia, John Holland has become synonymous with quality engineering and contracting.

For more than 65 years, the company has been dedicated to delivering exceptional results in the building, engineering, and rail sectors.

GROW TH John Holland and its new owner, China Communications Construction Company International Holding Limited (CCCI), have set the ambitious target of doubling the size of the Australian company within five years. With a new business model already in place, strengthened by a new Development & Investments arm, the company is moving in an exciting new direction.

CEO, Glenn Palin, says John Holland had a proud history of delivering major infrastructure for Australia: “That will continue to be an extremely important focus for us, but we are also moving in a new and exciting direction. We now have a business that can provide value across the entire 58

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infrastructure and property cycle.”

Palin said the business would focus on: • Being an integrated solution for governments.

• Further developing vertically integrated businesses to provide a ‘total solution service.’

• Proactively generating

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business growth through Development & Investment opportunities.

• Leveraging the global technology links and supply chain ability with CCCC. As further evidence of their commitment to international growth, John Holland has recently

opened a South East Asian office in Singapore.

“We have just opened a South East Asian Office, located in Singapore, testament to our on the ground project experience, along with a promising pipeline of work and excellent potential for growth,” says Palin. w w w. j o h n h o l l a n d . c o m . a u

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Can handle it.

Fredon is proud to be associated with the following John Holland projects: 1 Parramatta Square, Western Sydney University Abercrombie Precinct, University of Sydney Creative Industries Precinct, Queensland University of Technology Perth Children’s Hospital

QUEENSLAND

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VICTORIA

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NEW ZEALAND

ENGINEERING AND CONTRACTING

NEW FINANCIAL STRENGTH The launch of a new Development & Investments Group (D&I) is a critical step change for the future of the business. D&I will drive new business opportunities in property development and infrastructure, public-private partnerships (PPP) and concessions as well as exploring M&A prospects.

John Holland already has considerable experience with PPP, working on a number of successful projects such as the Southbank

SUPPLIER PROFILE

Education and Training Precinct in Queensland, Sydney Metro and, more recently, Melbourne’s Ravenhall Prison redevelopment project.

John Holland has performed numerous roles on these projects, from design and construction to operations and maintenance. They have also invested equity in projects such Sydney’s Lane Cove Tunnel and EastLink in Victoria and the newly awarded Canberra’s Capital Metro project.

“Our D&I Team will work hand in

FREDON

Employees: 900+ Established: 1968 Industry: Electrical, Data & Communications; Heating, Ventilation & Airconditioning; Security & Technology.

Services: Construction, Services & Special Projects, Maintenance, Engineering Design, Prefabrication, Integration Ongoing Projects: Health, Defence, Infrastructure, Transport, Community Facilities, Education, Manufacturing, Mining & Resources Accreditations: Quality ISO 9001, Safety AS/NZS 4801, Environment ISO 14001 (Global-Mark) Website: www. fredon.com.au

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CIVIL CONTRACTING BUILDING CONSTRUCTION ASSET MAINTENANCE PERSONNEL MANAGEMENT EQUIPMENT HIRE

Experiencing consistent growth since its inception in 2010, Monford is now a leading integrated construction service provider of civil contracting, building construction and asset maintenance services for the oil and gas, resources and infrastructure sector nationally.

Built “from the ground up” and led by hands-on Managing Director Declan White, Monford’s success stems from its Integrity, quality and streamlined processes – without the bureaucracy.

Beyond the generic efficiency, quality, safety, environmentally responsible statements most companies promise, Monford has rigorous processes, strategies and training and education to genuinely deliver projects on time, within budget, safely and sustainably.

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CONTACT US Sydney Suite 32 Level 5 Nexus Norwest 4 Columbia Court Baulkham Hills, NSW 2153 Ph: 02 8315 7047 Perth 7 Coulson Way Canning Vale, WA 6155 Ph: 08 6365 4507 Karratha 102 Lambden Road Karratha, WA 6714 Ph: 08 6365 4507

MONFORDGROUP.COM

ENGINEERING AND CONTRACTING

hand with our clients, investing and partnering with them to deliver high quality assets that maximise value,” Palin says, “Our extensive industry experience allows us to support our customers at every stage of the project lifecycle from defining and developing concepts at project conception, to operations and maintenance.”

“Our objective is to provide value and innovation to Australia’s infrastructure and property markets.”

SUPPLIER PROFILE

C O L L A B O R AT I O N Working together and sharing ideas often leads to the best results. For this reason, John Holland places a high value on collaboration. The company has partnered with the Australian Institute of Building to offer students opportunities for hands-on experience, and is active with several associations including the Australian Constructors Association and the Green Building Council to promote industry-wide progress and growth.

MONFORD GROUP

Employees: 200 Established: 2010 Industry: Infrastructure, Mining, Oil and Gas Services: Bridges, Buildings, Camps, Earthworks, Land Development, Marine, Pipelines, Precast concrete, Rail, Roads, Utilities, Water Infrastructure Ongoing Projects: Wheatstone LNG, Client John Holland, Value $35M; Nammuldi, Value $14M; Perth Airport & Freight Access, Value $11M; Burswood Stadium Rail, Value $8M; Perth Children’s Hospital Value $4M; Abraham Bridge Value $1.45M; Denmark Waste Water Treatment Plant Value $1M Website: www.monfordgroup.com

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ENGINEERING AND CONTRACTING

John Holland also works together with strategic technology partners to improve internal processes— like its web-based Project Pack Web system, to increase mobility and empower employees to be productive from any location and in turn enhance further collaboration with clients.

“We’re empowering people in IT to connect directly with their business counterparts to understand their needs,” said David Banger, CIO for John Holland. “Project Pack Web

was developed in collaboration with the business to make sure that it met their requirements while innovating and simplifying existing practices. Our staff members regularly visit projects to experience firsthand the way our services are utilised so we can continually improve the support we provide to the business.”

I N N O V AT I O N Innovation is imperative for a business intending to grow, but it is

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JOHN HOLLAND GROUP

“Our objective is to provide va innovation to Australia’s infras and property markets – John Holland CEO, Glenn Palin

ENGINEERING AND CONTRACTING

alue and structure s”

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JOHN HOLLAND GROUP

equally important that innovation is pursued with purpose. John Holland has established an Engineering, Technology and Innovation (ETI) function, which will ensure that continuous improvement is ‘business as usual.’ As such it looks at Design Management Services, construction planning, research & development, and new technologies.

“Its primary accountability is to build competitive advantage through engineering excellence, innovation, research and leveraging the breadth and depth of CCCC capabilities, resources and procurement.”

“The depth and breadth of our service offering, coupled with our internal collaboration model, allows us to effectively and efficiently deliver high quality infrastructure and engineering solutions for our clients,” Palin says.

CONCLUSION AND FUTURE Growth dominates John Holland’s future plans, bolstered by the support of its parent company.

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“We plan to double the size of John Holland within five years by building on our reputation for excellence and taking advantage of new opportunities,” says Palin.

“Many of our operating markets

ENGINEERING AND CONTRACTING

Company Information NAME

John Holland Group INDUSTRY

Engineering and contracting HEADQUARTERS

Melbourne, Australia EXECUTIVE

CEO: Glenn Palin

have seen significant change over recent years, particularly in the past 12-18 months. Evaluating these changes, identifying future industry trends, researching new markets and determining the competitive advantages we offer, has also been a vital part of the planning process.� w w w. j o h n h o l l a n d . c o m . a u

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SA GOVER

RECORD IN TO KEEP BUILDING

Construction will begin on almost $2.5 billion of majo creating thousands of jobs. Together with continuing projects are underw

RNMENT’S

NVESTMENT SOUTH AUSTRALIA

or infrastructure projects in South Australia this year g projects more than $6 billion of major infrastructure way or about to start.

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SOUTH AUSTRALIAN GOVERNMENT

Adelaide has been ranked the most cost competitive city in Australia

S

outh Australia has undergone a massive transformation over the past decade with more than $8 billion invested in public buildings and transport infrastructure.

The city’s Riverbank Precinct has been a focal point of this record investment, with a range of sporting, health, arts and entertainment 72

June 2016

infrastructure emerging, underway or planned.

The award-winning $535 million Adelaide Oval redevelopment is arguably the gem in the Riverbank crown - a shining example of how modernisation can mesh with preservation of unique heritage.

And the tens of thousands of football and cricket fans heading to

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the oval almost weekly have brought a new sense of vibrancy to the city.

Most cross the river via the new $40 million Riverbank Bridge which connects the oval to the city’s bustling restaurant and hotel precinct, as well as the Adelaide Convention Centre, which is undergoing at $397 million rejuvenation, and SkyCity’s

Adelaide Casino, which recently received development approval for a $300 million expansion, including a new boutique hotel overlooking the river.

The view from the Riverbank Bridge takes in the $2.1 billion Royal Adelaide Hospital, which is nearing completion, the recently opened $200 million South Australian Health w w w . p r e m i e r. s a . g o v . a u

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and Medical Research Institute and the University of Adelaide’s $125 million Medical and Nursing School which is currently being constructed.

The $40 million Festival Plaza project will create a Federation Square-style open space, further developing links within the Riverbank Precinct, while Walker Corporation’s $430 million office building is also proposed for the area.

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The redevelopment of this precinct owes its success in part to a focus on building the transport networks which service the area.

The $30 million tramline extension from Victoria Square to the city’s west has helped generate the urban uplift, linking these precinct sites with the Adelaide Railway Station, the Entertainment Centre and the evolving University of South Australia’s City West campus.

On the back of the success of the

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tram extension, a network of trams throughout the city – AdeLINK – is proposed.

The State Government has just announced a $4m business case will be developed, with the aim of encouraging both the Federal Government and local councils to partner in delivering this ambitious project.

The AdeLINK tram network is part of an integrated approach to the transport networks vital to a sprawling city such as Adelaide, which is why the Government has also been focused on upgrading our three most popular transport services.

A $291 million rail electrification and extension to Seaford opened in February 2014, increasing patronage from the sprawling southern suburbs by almost 80 percent.

Recently an $85.5 million, 620-metre extension of the electrified Tonsley line, connecting to the Flinders Medical Centre and Flinders University was announced, with a tender call expected soon.

The $152 million electrification

of the Gawler line to the northern suburbs is on the books to start in the 2017/18 financial year.

In the meantime work has started on the $160 million O-Bahn City Access Project, which will see a tunnel constructed under Adelaide’s nationally heritage-listed parklands, vastly improving travel times and reliability for the city’s most popular public transport network - the O-Bahn guided busway – while also greatly improving road traffic flows.

Improvement the movement of traffic across the vast city of Adelaide is the primary purpose of

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the State’s other major transport infrastructure project - the North South Corridor.

Already the $812 million South Road superway, the $512 million Northern Expressway, $118 million Gallipoli Underpass and $30 million Glenelg tram overpass have eased pressure on this vital freight and commuter corridor.

An $896 million upgrade between the River Torrens and Torrens Road is under construction and within

months work will begin on the $620 million Darlington Upgrade and $985 million Northern Connector.

A joint State and Federal commitment to upgrade the NorthSouth Corridor upgraded in 10 years, creating a 78-kilometre nonstop motorway linking growing urban areas in the city’s northern and southern suburbs, as well as providing crucial freight connections between key regions such as the Mid North, Barossa Valley, Fleurieu

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SOUTH AUSTRALIAN GOVERNMENT

South Australia secured the nation’s biggest ever defence project

Peninsula and the Port of Adelaide, via the $270 million Port River Expressway.

This is in addition to other works in the Port Adelaide area such as the $300 million Techport shipbuilding facility at Osborne, $126 million opening road and rail bridges over the Port River and $45 million deepening of the Outer Harbor channel.

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economy industries such as car manufacturing to new industries such as advanced manufacturing, and with the associated pressure on jobs, a key focus for the Government has been to maximise the benefits of infrastructure investment for local industries and workers.

The Industry Participation Policy gives tenderers who prioritise South Australian businesses and workers

CONSTRUCTION

Company Information NAME

South Australian Government INDUSTRY

Government – Public Infrastructure HEADQUARTERS

Adelaide, South Australia MANAGEMENT

South Australian Transport and Infrastructure Minister: Stephen Mullighan

a better chance of winning government contracts.

The policy does not exclude interstate or indeed international companies and consortia from bidding for local projects, but does convey an expectation that where possible goods and labour will be sourced locally.

All of South Australia’s major infrastructure projects now operate under this Industry Participation Policy, along with other requirements for successful tenderers to employ apprentices, Aboriginal workers and people from disadvantaged backgrounds.

Chief Executive, South Australian Department of Planning, Transport and Infrastructure: Michael Deegan

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Infrastructure in Indonesia: A once in a century opportunity Written by: Tom Wadlow Produced by: Richard Deane

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Why major construction projects are needed to drive socio-economic development and harness the entrepreneurial spirit of 20 million surplus workers

I

ndonesia is a sleeping giant. With 252 million inhabitants and a Gross Domestic Product of around US$890 billion, it is the largest economy in Southeast Asia and 30th largest in the world.

Domestic consumption accounts for more than 55 percent of the country’s GDP, a factor which has sheltered it from the global economic crisis and facilitated a steady growth rate of 5.8 percent over the past 10 years. Political stability and a burgeoning middle class of 74 million, many of which are under 30, is also an attractive proposition for would-be investors.

Indonesia also houses an abundance of natural resources.

It is the world’s largest producer and exporter of crude palm oil, the second largest producer of cocoa and tin, the second largest

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producer of coal and the fourth largest exporter of natural gas.

Steady, however, is not enough. Despite the already formidable statistics, voices inside the country are calling for a massive ramp up in productivity, especially in the construction of infrastructure. Such an enormous workforce and bountiful supplies of valuable commodities, it is said, are underutilised.

A report published in 2014 by Indonesia’s Centre for Public Policy Transformation, The Economic Choices Facing the Next President, outlines a ‘once in century opportunity’ for Joko Widodo, now in his second year as head of state. There are two choices - either continue with business as usual and continue with five percent growth, or embark

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on robust reform to generate 10 percent growth and four times the number of ‘good’ new jobs.

Peter Fagan has been in and out of Indonesia for the past 20 years and is now Vice President of Southeast Asia Operations for Hill International, experts in identifying, managing and mitigating large infrastructure projects across the world.

Responsible for scoping out opportunities in the country, he has spoken to a tremendous number of people in public and private enterprise, and agrees that today could mark a watershed moment.

“Yes, I do think this is a once in a century opportunity,” Fagan said. “There are more than 20 million under or unemployed workers with a strong entrepreneurial spirit, partly born by necessity as there is no social safety net system in Indonesia.”

Constructing cost effective business Shifting under or unemployed workers from generally unproductive agricultural and informal trades to more productive manufacturing jobs has been identified as key to awakening the sleeping giant. Reducing the cost of labour to manufacturing firms while increasing the incomes of workers may appear contradictory, but this is where a drastic need for infrastructure arises.

Fagan explained: “The cost of doing business in Indonesia is relatively high and it is not because of high salaries. It is because of poor infrastructure and the cost of the time it takes for things to move.

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The delay of getting into port and missing the ship is one example. Something like 10 percent of freight trucked to port actually misses the ship because the trucks just can’t get there on time.

Roads are chock-a-block all day and all night.”

The Indonesian ports themselves, Fagan added, are also in need of upgrading. Oil imports from the Middle East have to route via Singapore onto smaller ships in order to dock in Indonesia, adding significant cost. Navigating the 13,000plus islands is also a logistical challenge, with current infrastructure not aiding the process as much as it could. Difficulties such as these and the subsequent increase in the cost of doing business has resulted in major companies moving their custom to the likes of Myanmar.

“It’s not just roads and ports that will help businesses but also a significant investment into water resources and water treatment.”

Fagan said. “In Jakarta, as in many cities in Indonesia, you can’t drink the water out of the pipe. It’s so heavily polluted.

“Power supplies are also critically short and that’s not important just for the civilian population but also for business. It is big cost on business having to provide their own electricity when the government’s power supply is interrupted, which can happen frequently outside the capital city.”

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“There are more than 20 million under or unemployed workers with a strong entrepreneurial spirit, partly born by necessity as there is no social safety net system in Indonesia” – Peter Fagan, Vice President of Southeast Asia Operations, Hill International

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Driving development Improving the quality of life for Indonesians lies at the heart of the Centre for Public Policy Transformation’s research.

“The only reason to build infrastructure is to support the people of Indonesia and what do the people of Indonesia want?”

Fagan asked. “They want a job.”

Fagan highlighted the diligence and resourcefulness of Indonesian people by referring to a recently-revoked piece of Jakarta legislation which prevented cars from travelling at peak times unless they had three or more occupants.

This had driven unemployed people to ride in underpopulated cars in exchange for money.

“This is the only way some people were able

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to buy food and I think this goes to the heart of it,” Fagan added.

“All Indonesian people want is the opportunity for employment, and improving infrastructure will create an environment where businesses will want operate and employ more people.”

Political roadblocks Despite the best intentions of President Widodo, the political system in which he operates is holding back some important infrastructure projects.

The 120km high speed rail line linking Jakarta and Bandung, due to be completed by a ChineseIndonesian business partnership, is a clear example of a project being held up in the political machine. Having had the seal of approval from Jokowi, just 5km has been released for construction due to intervention from the country’s Ministry of Transport.

“Nobody really knows the rationale behind why it’s on hold,” Fagan said.

“What is reported in the media is that environmental studies and land acquisition are yet to be completed.”

This leads into another problem that of acquiring land, the budget for which is a fraction of what is needed to get several large infrastructure projects off the ground.

Indeed, the Economic Choices report states a need for a tenfold increase in government spending on infrastructure, from 0.6 to 6.5 percent of national income by 2019. It recommends scrapping the fuel subsidy, a move which has already been made, as a means to freeing up capital. Much greater tax reform will also be needed.

Despite bureaucratic hold ups there are projects making it through the pipeline. A timely third terminal at Jakarta airport is nearing completion, and will greatly ease pressure on the transport hub which is currently operating at 250 percent of capacity.

Countering corruption A well-established culture of corruption is another tricky barrier that the country is trying to overcome. Generations of government officials who could not survive without the income

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INFRASTRUCTURE IN INDONESIA corruption bought has led to its entrenchment in the political system of the day.

Fagan commented: “The government is making some progress with its anti-corruption unit, the KPK. They are investigating publically and putting people before the courts. People are starting to be punished for corruption and there are major cases almost every week. Certainly two or three cases every month are being reported in the press and I’m sure there’s a lot else that’s going on.”

Another policy helping to improve transparency and make business easier is the one door policy. Several departments that a proposal may have required approval from now operate under one roof, cutting out unnecessary bureaucratic layers.

It is an area in which Hill International specialises, having completed 10,000 projects and managed half a trillion dollars of project work over its 40 years. Overcoming approval barriers and ensuring as smooth a process as possible is a central pillar of what it does, and Fagan recognises the progress being made in Indonesia.

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Peter Fagan, Vice President, Southeast Asia Operations

Peter Fagan has vast experience working in Indonesia and across the world, helping to manage some of the largest infrastructure projects. This includes the ongoing Doha Expressway programme in Qatar, involving more than 30 smaller projects and investment of $35 billion. In Indonesia, Fagan and Hill International delivered a workshop to the Ministry of Finance, drawing on company expertise from London and Hong Kong to advise the department on how to get important projects off the ground. Fagan, having graduated with a construction degree, is now in charge of preparing Hill for the undertaking of new projects in Indonesia and elsewhere in Southeast Asia. w w w. h i l l i n t l . c o m

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“I admire the drive of the President.

His attempts to encourage and lead are admirable and there are a lot of foreign companies from Asia, Europe and the USA that are very enthusiastic and want to find opportunities to invest” – Peter Fagan, Vice President of Southeast Asia Operations, Hill International

“Things that were taking three to six months for approvals are now reportedly happening within days to weeks,” he said. “The most fruitful opportunity for us will be with foreign companies which are doing business here and with Indonesian companies that already operate in overseas locations because they understand compliance to legislation like the UK Bribery Act.” Optimism Indonesia’s middle class, a group which is set to double to 150 million by 2020, is key to pressing the demand for goods and services which will stimulate investment and provide work for the millions of under and unemployed.

Young, tech-savvy and interested in international brands, international surveys have shown Indonesians are receptive to advertising and eager to try new ideas. It is already the world’s second largest Facebook market and fifth largest on Twitter.

If the current government presses ahead with the recommendations set out by the Economic Choices paper, the country could experience growth double that of the present day.

Fagan concluded: “I admire the drive of the President. His attempts to encourage and lead are admirable and there are a lot of foreign companies from Asia, Europe and the USA that are very enthusiastic and want to find opportunities to invest.” w w w. h i l l i n t l . c o m

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The Gro

A DESIGN REVOLUTION

FOR THE GOLD COAST

ocon Parklands Project promises an advent of sustainable and accessible design for Southport and Queensland

Written by: Sasha Orman Produced by: Tom Venturo 93

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A

s the largest privatelyowned development, construction and real estate investment business in Australia, Grocon has built a reputation for delivering complex large-scale development projects that strike a balance between form and function. On the Gold Coast, Grocon is in the midst of one of its

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Village Heart Overview

largest development projects yet: the Parklands Project in Southport, Queensland. “We are proud to be investing, developing and constructing the Parklands Project into a vibrant mixed use community, which will be one of the most significant urban renewal developments ever undertaken on the Gold Coast,� said

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Steven Grimes, Grocon Parklands Project General Manager.

The Grocon Parklands Project is a key part of the Gold Coast Health and Knowledge Precinct, a $5 billion development across 200 hectares in Southport. Already home to Griffith University the cutting-edge Gold Coast University Hospital, and Gold Coast Private Hospital.

Grocon’s contribution to the district will be a mixed-use village featuring 1,252 one, two and three-bedroom dwellings (18 apartment towers and 82 townhouses), a regional Shopping Centre with 18 retail and dining outlets with a full line supermarket, and seven hectares of public park space around a ‘Village Heart’.

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“Everything we do is driven by our core values of Safety, Sustainability, Community and Innovation,” said Grimes. “The Parklands Project provides a showcase of bringing our values to life.”

A S U S TA I N A B L E A PPROACH “Our aim is simple: to leave our planet in a better place than we found it,” said Grimes. “That means every project always contributes to a greener future.”

The Parklands Project is no exception, with a design and

vision incorporating industry-wide best practices for sustainability, community engagement, and environmental protection from construction to completion.

To encourage ecosystem rehabilitation, Grocon is reinstating natural landscaping and connections to adjoining forests within the seven-hectare public park at the center of the Parklands development. Grocon also weaves sustainability and energy efficiency concepts into its apartment and townhouses designs, from towers built to enhance natural sunlight

“ OUR AIM IS SIMPLE: TO LEAVE OUR PLANET IN A BETTER PLACE THAN WE FOUND IT. THAT MEANS EVERY PROJECT ALWAYS CONTRIBUTES TO A GREENER FUTURE.” – Steven Grimes, Grocon Parklands Project General Manager

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Steven Grimes (Grocon Parklands Project General Manager), Dean Bruker (yourtown consultant) Grant Beckett (Grocon Constructors Executive Project Manager)

and natural cooling breezes to LED lighting fixtures and smart appliances in every home.

Furthermore, Parklands homes are built to meet Livable Housing Design guidelines for more inclusive and accessible living spaces.

These efforts have not gone unnoticed. The EnviroDevelopment scheme, produced by the Urban Development Institute of Australia (UDIA), certified the Parklands Project’s sustainable development status across five categories: sustainability of ecosystems, 98

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waste, energy, materials, water and community. Meanwhile Grocon has partnered with the Queensland Government to achieve a Livable Housing Silver standard for Parklands townhouses and Livable Housing Gold for its apartments.

A VA LU E D WO R K FO R C E An extensive undertaking like the Parklands Project requires an equally extensive staff—the Parklands Project will have 1,000 workers on site at the peak of construction, with a total of nearly

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Otis is the world’s largest manufacturer of elevators, escalators and moving walkways. For architects and contractors, developers and homeowners, Otis is the world’s leading people mover.

Revolutionary flat-belt technology enables a more compact, energy efficient machine, freeing up valuable building space and reduce operating costs.

Environmentally friendly Gen2 elevators set the new standard for performance, reliability, design flexibility and comfort – while reducing costs and energy usage throughout their life cycle.

Thanks to its flexible belts, the Gen2 system is more compact and more efficient.

The Way to Green gets greener Energy conserving ReGenTM drives make Gen2 systems up to 75 percent more energy efficient than conventional systems with non-regenerative drives.

Otis Elevator Company Pty. Ltd. 149-155 Milton Street, Ashfield NSW 2131, Australia Phone: +61 2 8338 2700 | Fax: +61 8338 2730 | www.otis.com

10,000 involved throughout the design and construction process.

Grocon recognises that each individual is crucial to the success of the project, and strives to create a workplace where employees and subcontractors can feel valued and empowered.

“We want our people to feel they can make a difference – to our business and to the world around them,” said Grimes. “We believe that providing an enjoyable working environment is how we can best help our people achieve

their personal and career goals, and so that’s exactly what we do.

We maintain a positive work place through providing an ethics and values-based organisation, open two-way communication and a cultural and behavioural framework of capability. We are committed to encouraging personal development, recognising good performance, valuing teamwork and fostering an environment of equal opportunity.”

Grocon also values the safety of its workforce, using methods and materials like polymer formwork

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Overview of Village Heart from North

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from Dincel Construction System to reduce the hazardous tasks workers are faced with every day.

With an industry leading OHS policy certified to AS 4801:2001, the company strives to maintain a work site that is not only positive but also 100 per cent LTI injury-free.

“Our teams actively participate in site based safety interactions where by staff interact directly with the workforce to encourage and foster a positive safety culture,” Grimes added. “But to us, safety is also about more than zero

harm—it’s also about providing wellbeing programmes that achieve better health outcomes for all of our employees. We drive a safety culture to lead the construction industry.”

A L ASTING LEGACY The Parklands Project by Grocon has a bright and colorful future ahead of it—Grocon is currently on track to complete construction by the end of 2017, at which time the complex will be leased to the Gold Coast 2018 Commonwealth

Finn Jones (UDIA Gold Coast Branch President) and Steven Grimes (Parklands Project General Manager) at the award of the Parklands Project 5 leaf EnviroDevelopment accreditation

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Aerial view, March 2016

Games Corporation (GOLDOC).

The residences within the Parklands Project will serve as the Gold Coast 2018 Commonwealth Games Village, housing 6,600 athletes and officials while drawing attention to the project and the Gold Coast’s potential as a leader in sustainable design.

“We are proud to be able to deliver Parklands Project as a sustainable and vibrant mixed-use community 102

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for the Gold Coast Health and Knowledge Precinct.” said Grimes.

“The village heart and residential village are staged to become iconic international landmarks in sustainable design.”

After the Commonwealth Games, Grocon will then go back in to transition the Parklands to its final form as a mixed use residential community, outfitting the apartments and townhouses with

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Project Information INDUSTRIES

Construction, Property Development and Real Estate Investor L O C AT I O N

Southport, Queensland YEAR FOUNDED

2014 - Civil Works 2016 - Building Works BUDGET

$550 million EMPLOYEES

final touches before making them available for lease in 2019. While this marks the end of heavy development, Grocon expects that the impression the Parklands Project makes on the Gold Coast and Queensland will be a lasting one.

Grimes concluded: “Our hope is that the Parklands Project will provide a valuable legacy to the Gold Coast community— to become a benchmark sustainable community development that will inspire future projects.”

1,000 during peak construction with trade subcontractors onsite daily PROJECT MANAGEMENT

Grocon Parklands Project General Manager: Steven Grimes Grocon Constructors Executive Project Manager: Grant Beckett

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Building strength out of

STRENGTH

aging Director Nathan O’Neill reveals how Unique Urban Built is committed to providing high end construction services with innovation and flair Written by: Eric Harding Produced by: Vince Kielty 105

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S

outh Australia-based Unique Urban Built specialises in designing, constructing and managing contracts.

Current and previous works include new-built projects, multistory projects, civil works and infrastructure works, hospitals, schools, swimming pools. Unique Urban Built also handles projects in rural and remote communities outside of Adelaide.

Operating across multiple states with a vast amount of experience within the company, Unique

Adelaide Aquatic Centre

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Urban Built is able to deliver projects based on strict timelines and varying complexity. The relationships the company builds with its customers separates it from the competition.

JACK OF ALL TR ADES Unique Urban Built doesn’t specialise in one particular area.

Instead, the company’s main focus is being the best at a variety of large-scale jobs. One of these is the Adelaide Aquatics Centre, which remained open for business while

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Managing Director Nathan O’Neill

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Quorn Memorial Swimming Centre

Unique Urban Built did civil concrete work.

“We were able to deliver the project on time and within budget with a variety of subcontractors in a way where the public was very safe and with minimal noise,” says managing director Nathan O’Neill.

“Operation in a live environment carries important considerations, including understanding what we need to deliver for the client and the nature of their business.”

Unique Urban Built has multiple 108

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management systems in place to ensure the safety and wellbeing of its employees. The system is catered to the operations of the business.

“We operate with safety and environmental measures at the forefront of each and every project,” says O’Neill . “And we detail these as senior management, where we evaluate each project to undertake a full assessment of potential risks and implications. “We detail exactly what our plans need to be to prevent

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and minimise any potential risks. We do that for every job, no exceptions.”

According to O’Neill, the management system is very workable. It’s housed in the main office and dialed in through a portal so it can be accessed from each of the sites. From there, the company is able to access it at any time and gain a better understanding of the jobs for day-to-day purposes.

Semaphone SLSC

R E L AT I O N S H I P S O’Neill believes that communication is the key to fostering and developing supply chain relationships. Although supply chain issues arise at times, open communication and resolving issues while providing solutions ensures ongoing trustworthiness.

“I go out of my way to emphasise the importance of collaborative and effective communication with the

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STEEL FABRICATION STEEL ERECTION CRANE HIRE Gant & Sons Engineering offers structural steel fabrication and erection expertise throughout Australia.

Capabilities range from the manufacture of simple structures (including residential T Beams and Lintels) to more complex mining and architectural fabrication.

We have built a reputation of honesty and integrity allowing us to maintain relationships and grow in conjunction with customers and clients.

• • • • • • •

Quotations Project management Drafting Fabrication Surface treatments Erection Welding & rigging services • Crane hire

7 Palina Court, Smithfield SA 5114 | tenders@gantandsons.com.au |

team. We have fostered strong relationships with our contractors and suppliers,” he says.

Unique Urban Built has chosen Westpac as its business banker, and has developed a strong union, enabling the company expand its business when necessary. Both large and small contractors play a role in the success of Unique Urban Built, and O’Neill said their input and workmanship is valued greatly.

“One of the philosophies in the company is providing a great 110

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service to clients, because they need to deliver projects or have a project they need to deliver for themselves or someone else,” says O’Neill. “This is often dynamic; we try to facilitate that in many ways, but building relationships through great services is our key.”

G R E AT C U LT U R E According to O’Neill, the majority of Unique Urban Built’s employees have been with the company for many years.

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“They’re great people,” he says.

“They’ve got integrity, they’ve got knowledge and the way they operate is very professional.”

Integrity and professionalism in the workplace is very important to Unique Urban Built, and O’Neill says he bases all of his conversations with employees on that premise.

No matter their background, every employee is provided the opportunity for growth within the company.

“Our team has created a culture,

Trinity Gardens Tennis Club

something we have all worked very hard at. This starts right with the team and extends to our contractors and subcontractors.

As a team, we have structured an inclusive operating rhythm that has seen work become a thriving and rewarding activity,” he says. “A lot of people these days go to work and find it mundane. All they do is look forward to the weekend, and that is something that I don’t want to have as part of Unique Urban Built. A great culture within the workplace

U N I Q U E U R B A N B U I LT

is important for me, and as a managing director, I am committed to supporting that in every way possible.”

Unique Urban Built’s continuous improvement measures always begin with its people. There is a large training matrix for employees, which is also where the retention of people is immersed in its philosophies.

“We try to train our people to the leading edge of construction,” says O’Neill. “And we make sure they also keep that traditional service line within their dealings of day-to-day client-related services.”

LOOKING AHEAD Unique Urban Built will continue in its efforts to minimize its impact on the environment, incorporating new and emerging strategies into upcoming projects.

“Our innovation really comes about from being able to understand the endpoint of the contract,” he says. “Innovation comes with being able to operate sustainably. We detail missions in our construction to make sure 112

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240 Port Rd

we reuse and recycle all of our environmental measures.”

O’Neill is on the verge of personally launching a civil projects division that will undertake largescale road and infrastructure projects.

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Company Information NAME

Unique Urban Built INDUSTRY

Construction HEADQUARTERS

Wingfield, SA Australia FOUNDED

2007 MANAGEMENT

Managing Director: Nathan O’Neill

“Building on traditional service while undertaking large-scale projects for the delivery of government services is really where we want to make sure we go,” he says.

“Obviously, through undertaking property development, we’ll continue building our property portfolio.” w w w. u n i q u e u r b a n b u i l t . c o m . a u

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BUILDING A GATEWAY

TO PERTH

The Gateway WA Perth Airport and Freight Access Project seeks to give the capital city new levels of safety and efficiency Written by: Sasha Orman | Produced by: Vince Kielty

s

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ith significant global industry and tourism connections, and as Western Australia’s capital, Perth is often our country’s primary entry point for visitors and trade partners—and first impressions are always important.

To alleviate Perth’s rising airport and industrial traffic, while ensuring that the city is always putting its best foot forward, Main Roads Western Australia assembled an Alliance of five industry leaders— CPB Contractors, Georgiou, GHD, AECOM, and BG&E—to take on the most ambitious road infrastructure project in Western Australia’s history.

“The Gateway WA Perth Airport and Freight Access Project is an iconic infrastructure project for Western Australia, providing a much needed upgrade to one of the State’s most important transport hubs,” says Ilario Spagnolo, Senior Project Director. “A road project of this size and scale had never been carried out in the state before. It was delivered by an Alliance of industry contractors, including Main Roads 116

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Tonkin Highway / Roe Highway interch

Western Australia, which allocated work to more than 600 local subcontractors and suppliers.”

The extensive scope of the $1 billion Gateway WA project includes vital upgrades to 7km of Tonkin Highway, 3km of Leach Highway and major interchanges in the area, including the ‘Grand

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hange in operation

Gateway’ at the Tonkin Highway/ Leach Highway interchange, and approximately 21km of continuous grade separated shared path and local connections for pedestrians and cyclists. In addition to these technical upgrades, the project is also creating more pleasant travels through such innovative aesthetic

urban design upgrades as 7km of noise/screen walls and more than one million plants.

Such an ambitious project often faces the risk of going over budget and past schedule. But through diligence and careful planning, Gateway WA is on track for completion at the end of March w w w. gatewaywa.com.au

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Gateway WA Quarterly Alliance Directors Award January – March 2015 for the high standard of work delivered on the project “At Westforce we strive to constantly improve and deliver in the most cost effective and safety conscious manner for each and every client on each and every project.”

Westforce is a multi disciplined construction company focusing on major construction, infrastructure and resource projects across Australian metropolitan and remote areas.

The Westforce Group has both a “Construction” and a labour and plant “Hire” division. This allows Westforce to offer clients anything from a design and construct lump sum projects to a once off trade and plant placement.

27 Moojebing Street Bayswater WA 6053

T: (08) 9279 1900 F: (08) 9279 1422 E: info@westforce.com.au

www.westforce.com.au

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2016, under budget and nearly a year ahead of schedule.

SAFETY ON THE GATEWAY “The vision of the Gateway WA project was a safe and efficient transport network that provides an iconic gateway to Western Australia and the project’s mission was to safely deliver sustainable landmark infrastructure around Perth Airport and the Kewdale and Forrestfield freight precincts,” states Spagnolo.

“Safety has always been at the forefront of what we have done and

SUPPLIER PROFILE Employees: 70 -120

what we have delivered.”

When a complex project with multiple high risk-posing components is at hand, a commitment to safety cannot simply be lip service. For the Gateway WA Alliance, safety is fully engrained in the workplace culture. The project has entailed what Spagnolo describes as a “hierarchy of control” including engineering, isolation, substitution and elimination to promote a high standard of safety that ultimately achieved concrete results.

WEST FORCE CONSTRUCTION

Established: 2006

Industry: Civil Construction

Services: Specialists in all aspects of the civil construction industry from earthworks to finished concrete & mechanical. Providers of skilled labour crews and plant hire.

Ongoing Projects: Roy Hill Chlorides Washing Facility, Beenyup Waste Water Treatment Plant, Australian Defence Facility Upgrade, Boral Crushing Facility, PTA Claisebrook Retaining Noise Walls, BHP Yandi Upgrade.

Management: Mike Murrey - Managing Director; John Smith - Commercial Director; Phil Clarke - Operations Director; Paddy Kearns, Resources Director Website: www.westforce.com.au

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Safety Barriers WA (SBWA) supplies and installs a wide variety of safety barriers for roads, bridges, car parks, temporary work sites and mine sites including: · · · · ·

W-Beam and Thrie-Beam Guardrail Wire Rope Safety Barriers (WRSB) Steel Protection Screen Steel Security Bollards Bridge Barriers

Telephone: (08) 9279 0600 info@safetybarriers.com.au

· · · · ·

Top Rail Barriers Concrete Barriers Temporary Barriers Crash Cushions End Treatments

www.safetybarriers.com.au

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“Gateway WA’s commitment to providing a robust safety culture resulted in the project achieving more than 4 million Lost Time Injury free hours,” says Spagnolo.

“The team focused on the critical aspects of safety across all stages of design and construction, as well as frontline leadership.” That record has not gone unnoticed by the Alliance’s peers—the project took the ‘Best Workplace Safety and Health Management System’ award at the 2015 Western Australian Work Safety Awards.

SUPPLIER PROFILE

AN INNOVATIVE APPROACH Gateway WA has employed many instances of innovation and creative thinking to meet the unique challenges of the project, while increasing safety and efficiency for drivers at every turn.

“The introduction of the first, single-point urban interchange to the State, at Leach Highway/ Abernethy Road, was innovative for Western Australia, and the introduction of the first-ever tennis ball design configuration, as part of the Roe Highway/Berkshire

SAFETY BARRIERS WA

Safety Barriers WA has over 30 years of experience in the Civil Construction industry supporting small and large Road Building projects all over Western Australia.

Safety Barriers WA supply and install Guardrail, Wire Rope Safety Barriers, Bridge Barriers and Crash Cushion systems throughout Western Australia’s public roads, mine sites and commercial properties.

Safety Barriers WA have successfully completed the largest ever Road Barrier package in Western Australia on the iconic Gateway WA project with over 45,000 metres of Road Barriers, Crash Cushions, End Treatments and Top Rails.

Our work crews have a long standing reputation for their professional and safe attitude on-site and are often commended by our clients.

Why compromise on Safety – Insist on Safety Barriers WA for your next project.

Website: www.safetybarries.com.au

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A PARTNER YOU CAN RELY ON FOR LARGE SCALE PROJECTS "Over the fourteen months of the Gateway project 55,000 cubic metres of C-Wise composted products were delivered to the project, which equates to more than 1,000 semi trailer loads."

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Road interchange, was a first for Australia,” explains Spagnolo. “The innovative design at Roe Highway/ Berkshire Road was prompted as a Safe Systems initiative and it can generally be described as being similar to a roundabout under signal control but with right-turn traffic movements from Berkshire Road moving through the roundabout to and from the ramps. This type of design means the risk of 90 degree collisions between vehicles is significantly reduced, leading to an 122

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W cwise.com.au

improved road safety outcome for road users, while also moving traffic through the junction in an efficient manner.”

That same creative thinking helped Gateway WA stay ahead of schedule and keep workers safe, without adding undue disruptions to Perth’s already busy functioning highway system.

“Gateway WA was dealing with one of the State’s busiest transport hubs and had to keep freight and passengers moving during

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“The innovative design at Roe Highway / Berkshire Road was prompted as a Safe Systems initiative and it can generally be described as being similar to a roundabout under signal control but with right-turn traffic movements from Berkshire Road moving through the roundabout to and from the ramps.”

– Ilario Spagnolo, Senior Project Director

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Roe Highway / Berkshire Road interchange at night time

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Leach Highway

construction,” notes Spagnolo. “The Alliance worked closely with Main Roads Western Australia to deliver higher standards and implement traffic management not widely used before in Western Australia.” This included the use of truck mounted attenuators and the introduction of full road closures and contra flows, which increased worker safety.

A SUSTAINABLE OPTION In addition to safety, the Gateway WA project has also paid special 124

June 2016

attention to sustainability, especially where the management of its 5.9 million tonnes of bulk materials and subsequent waste was concerned.

“The Alliance model on the Gateway WA project fostered fresh ideas for sustainability,” says Spagnolo. “The team looked at a wide range of perceived environmental risks that could potentially arise from construction.

From there, a waste management strategy was put in place that set clear targets and goals for

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Shared path along Tonkin Highway

waste reduction from the outset.

By defining what the project’s objectives were from the outset, it led to a shared vision of what waste minimisation would be on the project.�

The Gateway WA project utilised several methods of waste minimisation, such as using recycled materials like quarry crusher dust and construction and demolition waste (C&DW) as fill. The project also created an onsite licensed facility to treat acid

1,000

Number of employees at peak construction

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G AT E WAY WA

sulphate soil and degraded soil material, ensuring that its topsoil waste can be reused in other projects down the line instead of being sent to landfill.

“The sustainable reuse of degraded and other unsuitable soil has many benefits, particularly from an environmental perspective,” says Spagnolo. “As well as reducing the project’s impact of sending materials to landfill, it decreased Gateway WA’s reliance on imported fill brought in for the project. This, in turn, meant less vehicle haulage and traffic congestion, which is environmentally and socially beneficial.”

Gateway WA was also recognized for these efforts, chosen as the Business Category winner at the Waste Authority’s 2015 Infinity Awards for its commitment to waste minimisation on the project.

The project has also garnered a prestigious certification of excellence for design by the Infrastructure Sustainability Council of Australia in 2014—one of only two road projects in Australia to earn that designation.

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Tonkin Highway / Horrie Miller Drive /

AN UNRIVALED IMPRESSION “From the outset, it was important to create a gateway to Perth, with an entry statement rivaling other cities in the world,” says Spagnolo.

“Perth is often the first impression of Australia to international visitors, so we wanted to create something that was unique to the State and to

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Company Information PROJECT NAME

Gateway WA Perth Airport and Freight Access Project INDUSTRY

Infrastructure HEADQUARTERS

Forrestfield, WA FOUNDED

2013 EMPLOYEES

1,000 at peak construction

/ Kewdale Road interchange at night time PROJECT BUDGET

the country—to express the dynamic, creative and rapidly evolving character of Western Australia.”

From its cutting-edge engineering to striking urban design, the Gateway WA project is helping Perth make its mark on the world. As Spagnolo adds, “The Gateway is something that the people of our State can be proud of for years to come.”

$1 billion

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ON THE PATH

TO AUSTRALIA’S SMARTEST CITY How the University of Wollongong is creating a center for technology and learning Written by: Sasha Orman Produced by: Vince Kielty 129

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s Australia on the precipice of a thoroughly high-tech future—and could the city of Wollongong hold the key to its progress? Fiona Rankin believes so. As Director, Information Management & Technology Services (IMTS) for the University of Wollongong (UOW), Rankin is overseeing an ambitious transformation of the university into a hub of innovation and a focal point within the smartest city in Australia.

A multifaceted approach for a multifaceted institution The University of Wollongong’s plan for the future is one with multiple legs, a fact that makes perfect sense, as the university itself is a multidimensional institution.

“We’re an interesting business in the sense that we’re a traditional university, with teaching and learning and a heavy emphasis on research, but in addition to that, we also have a series of international campuses and a strong international development focus,” says Rankin.

This puts UOW in a relatively unique position and gives the institution a different perspective on priorities for 130

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the university’s future.

“We have our series of international campuses, and we’re also a big employer in the Illawarra region and have a sense of duty and care toward the region as well,” she

E D U C AT I O N

adds. This sense of duty and care is at the heart of the university’s IT transformation plans, bringing industry and education into the modern age for Wollongong and the Illawarra.

A bright plan for the fut ur e of Wollongong students UOW is a university system with a reach that extends far beyond the Illawarra region—its most recent w w w. u o w. e d u . a u

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WHEREVER YOU GO YOUR DATA IS READY. WELCOME TO DATA FA

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Management: Steve Manley, Vice President & Managing Director, Australia & New Zealand Matt Hurford, Systems Engineering Director, Australia & New Zealand To learn more, visit www.netapp.com.au

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UOW campus

figures boast enrollment of 32,208 students, including more than seven thousand offshore students taking courses at its campuses in Dubai, Kuala Lumpur , Singapore and Hong Kong. With the recent update of its Information Management and Technology (IMT) Strategy, the university has shown that it has big plans for the future of all these students and researchers, and what they will be able to achieve.

Based on such guiding principles as customer-driven architecture and information as an asset, the UOW’s IMT Strategy maps out a five-year plan for a full-scale digital transformation. Through a series of upgrades to the institution’s IT capabilities, from digital delivery portals to its strategy in the cloud, the university aims to provide an enriched experience for its students and staff, wherever they may be. w w w. u o w. e d u . a u

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Learn how Dell can simplify high performance computing in higher education and research institutions at Dell.com.au/HPC

E D U C AT I O N

Early Start at night

It is a formidable goal, especially for a university with a 40-yearold history. “From a technology perspective, the challenge is keeping the lights on while you’re changing the legacy,” says Rankin.

“You always inherit a component of legacy technologies, and you don’t have the luxury of stopping the business and having a clean slate.

You’ve got to keep up and make the transformation while continuing to

service your students and staff.”

Other challenges include ensuring that professors and administrators are onboard and up to speed, and upgrading technology across a wide range of interests. “This includes everything from audio visual (AV) services in the classroom to very niche research capabilities,” says Rankin, noting that she and her team are enthusiastic about the road ahead. “It’s been quite w w w. u o w. e d u . a u

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Sciences Teaching Facility

“ NETAPP’S DATA

FABRIC ENABLES UOW TO MOVE TO CLOUD, ON OUR TERMS, WHILE KEEPING OWNERSHIP OF OUR DATA

“

– Fiona Rankin, Director of Information Management & Technology Services (IMTS) for the University of Wollongong 138

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challenging, yet exciting.”

In addition to the dedicated commitment from the IMTS staff, the university relies heavily on strategic technology partners such as NetApp, with whom UOW has had a 15 year relationship. NetApp provides UOW with its core data storage, with backup and disaster recovery built-in. On top of this, “NetApp’s Data Fabric enables UOW to move to cloud, on our terms, while keeping ownership

SECTOR

of our data”, says Rankin.

Inviting innovation, transforming Wollongong UOW’s aspirations extend well beyond the walls of its campus.

As traditional mining and manufacturing industries face challenges, the university sees vast potential to remake its hometown as a Silicon Valley-style beacon of innovation and collaboration.

One step in this direction involves working closely with regional partners to transform Wollongong into a well-connected smart city, with the University’s Innovation Campus at its core.

“The Innovation Campus is looking to attract new startups and innovative companies to come to Wollongong—that’s a big focus for us,” explained Rankin. “We’ve dedicated a whole series of buildings and w w w. u o w. e d u . a u

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Early Start by day

facilities on the Innovation Campus to accommodate the startup businesses and to attract business to come to the Illawarra region.

We’re working with the Council and various industry networks to assess trialing technologies, so that we can best share, facilitate and leverage 140

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each other’s capabilities.”

While UOW’s smart city plan is likely to help in raising the university’s profile and attracting students and enabling their success, Rankin notes that this project is about much more than the university itself.

E D U C AT I O N

“It’s not just about the university— it’s actually about Wollongong, and how can we attract new businesses and bring ideas and jobs to Wollongong,” she said. “It’s a bigger play than just us attracting new students, because as we speak, the whole university play is transforming, getting into more online courses. This expansion is more about how can we contribute to transform Wollongong internationally to be known as the greatest smart city, and how we can attract jobs to the university. That’s a win-win.”

Rankin cites NEC as an example—the Tokyo-based IT firm recently set up operations at the UOW’s Innovation Campus.

“That’s bringing a whole series of new jobs and IT capabilities that I can leverage,” she added. “It’s putting international vendors at my doorstep.”

Damien Israel, CFO

The future is now UOW’s future is a busy one. “We have a very large program of work,” says Rankin. “Last year we embarked on a big program for

Fiona Rankin, Director IMTS

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teaching and learning platforms, and this year we’re looking at the overall whole student experience, to ensure that our students have a very positive experience at the University of Wollongong, whether on-campus or on-line. There will also be quite a bit of work around our research and innovation.

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continue to connect students with research internationally. We have a big expansion into our international development, with a new Hong Kong campus, and other domestic initiatives as well.”

As it continues to grow, UOW’s multifaceted model allows it to view the world through global lenses, heightening its ability to better view the world and the role it plays within it.

“We’re not just running a technology

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Company Information NAME

University of Wollongong INDUSTRY

Education CAMPUS

Wollongong, NSW Australia FOUNDED

1975 EMPLOYEES

2,450

shop here. We have a part to play in the region, we have a part to play internationally, so we always have to have multiple focuses at any given moment,” adds Rankin. “Even though we are based at a regional campus, we’re also a big international player with a very strong reputation in terms of our education and research. That’s why students and researchers come here.”

If the University of Wollongong is able to attract startups and businesses in the same way, the future of this smart city in the making is one of unlimited potential.

REVENUE

$617 M

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DEAKIN WENT DIGITAL Deakin is embracing the delivery of education through digital channels, as Business Review Australia reports Written by: John O’Hanlon | Produced by: Vince Kielty 145

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t’s time to forget the ‘ivy covered professors in ivy covered halls’ that some of us may still associate with a university education. ‘Live the future’ is the strapline for Deakin University’s Agenda 2020, a programme that promises to ‘bring the opportunities of the digital age into the real world of Learning, Ideas, Value and Experience by the end of this decade.’ As we have seen often enough in these pages, digital transformation is a common goal in the worlds of business, finance, telecommunications and the like, but tertiary education has been held back especially in the west, by the traditional picture of what a university education ought to be like. It has taken an Australian institution to radically re-imagine the learning landscape from the perspective of its ‘customers’, the students and teachers.

Deakin had a head start on Australia’s 42 other universities, including the seven that are located in its home state of Victoria, thanks to its distinguished track record in distance learning. Established 146

June 2016

in 1974, Deakin was Victoria’s fourth university and the first in regional Victoria. It has four physical campuses, at Melbourne, two at Geelong and another further to the west at Warrnambool, as well as a number of learning centres.

Currently a quarter of its 53,000 enrolled students belong to what it calls its Cloud Campus, and may

never need to visit its physical facilities. While this clearly means that their education entirely depends on digital channels for its delivery, whatever the route to higher education a student chooses access to learning is going to be increasingly an online affair stresses Deakin’s Vice President, CDO and CIO William Confalonieri;

and it’s maybe the on-campus students who have seen the most striking benefits from technological innovation so far.

Confalonieri was appointed in January 2012, and a year later was given the vice-president’s role of Chief Digital Officer (CDO), with a permanent seat on the University Executive, becoming Australia’s w w w. d e a k i n . e d u . a u

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first university-sector CDO. This makes Deakin the only regional higher education institution to embrace technology at board level, and to recognise that digital strategies will drive its future growth and indeed competitiveness. “The traditional model of IT and the CIO function has become a fragile one,” he says. “Digital disruption is a reality and if CIOs don’t address this at a strategic level they risk being relegated to the back office, whatever type of organisation they are in. Of course we still need to take responsibility for all of the platforms

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we traditionally manage, for security and service provision. But if we stop there we are going to be seeing only half of the picture.”

Deakin’s long tradition in distance learning prepares it well for the new reality all universities face now - they must be prepared to deliver education through digital channels. The cloud campus is made up of students who balance family, jobs, and a host of different life circumstances that demand flexibility – or live in remote locations, while more of the on-campus students may be

Water front Student Central - Student advice and assistance

school leavers. The IT team has to serve both. “The digital journey demands very high standards in either case,” explains Confalonieri.

“We are pushing at the boundaries of what is possible, exploring and experimenting with all the leading edge technology that we can find to contribute to the student experience.” Once a trend is identified, his team works in partnership with IT vendors and technology providers to deliver real150

June 2016

world solutions. Artificial intelligence (AI), augmented virtual reality (AVR), location services, robots, emotional computing, community computing and the internet of things (IoT) are among the bleeding edge technologies that are not only being studied but actively implemented.

“We want to be right at the leading edge, so we put these services in place incrementally, in the full knowledge that they are evolving in ways we can’t see yet.”

E D U C AT I O N

SMART STUDENTS SMART CAMPUS Deakin students, for example, are the only ones in the world currently able to access IBM Watson cognitive computing technologies.

This is a system with a mind of its own. Introduced just over a year ago, students have used it at a rate of 1,600 enquiries a week to get information about admissions; enrolment; tuition and fees, financial assistance, student housing, extracurricular skills development, health and wellness, facilities,

job placement, employment preparation, job skills assessment and academic help. “Watson is a breakthrough and cutting-edge system – it’s a perfect match for this university and represents thinking right on the edge of the digital frontier,” says Confalonieri. “It is also able to learn from its experience and evolve, so its value to the students is increasing daily. They love it!”

As you’d expect, most of these questions are fairly pedestrian, like ‘Where can I get food on campus?’, ‘How do I get a student card?’ or

“WE ARE PUSHING AT THE BOUNDARIES OF WHAT IS POSSIBLE, EXPLORING AND EXPERIMENTING WITH ALL THE LEADING EDGE TECHNOLOGY THAT WE CAN FIND TO CONTRIBUTE TO THE STUDENT EXPERIENCE.” – William Confalonieri, Vice President, CDO and CIO

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‘Where is the library?’ - but then these are the very stuff of student life, and students can pitch as many questions as they like to Watson via text on any device connected to the web.

The university is ready to invest heavily in order to keep its lead.

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place.” Location services based on access points distributed across the university can triangulate the position of every student’s device within a few centimetres, he says.

“Based on that we put an app together with Cisco last year that shows in real time the distribution of the students at any particular location across the campus. For

SECTOR

example you can see how many are in the library at a particular time, or track the usage of different facilities over the course of a week.

If a student needs help, for example in finding a particular book, he can submit a request and a member of staff can walk over to him and guide him because they know where he is!� There are 1,000 information

points across the campuses.

Soon, based on the same app, these will be able to recognise you as you approach, greet you and tell you where your next lecture is – unsurprisingly that is an optin service to permit the choice between convenience and privacy!

The smart campus concept is not so much to keep track of w w w. d e a k i n . e d u . a u

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the students as to provide them with location services, AI and IoT, creating a campus that responds to the students. Watson was just the first step. As recently as December 2015 a further significant step was taken when Deakin partnered with EON Reality to set-up the first Interactive Digital Centre (IDC) hub in the Asian region at the Melbourne 154

June 2016

campus. It will offer students, staff and industrial partners access to the latest technologies and knowhow in the field of scalable VR and AR, and help train developers to meet the rapidly expanding market need as industry takes advantage of the faster learning and greater knowledge retention these technologies can provide.

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T E C H N O L O G Y T H AT P AY S D I V I D E N D S In industry the business case for technology investment is usually made by pointing to savings through automation, reduction in overhead costs and in headcount, but there’s always a benefit in terms of customer service too. In education the students and staff are the customer. “We have led the student satisfaction tables among the universities of Victoria for a long time and that is really important to

us because it grows our reputation and enrolment numbers. If we don’t do this work someone else will and we will become obsolete.

All the innovations we are working on contribute to the ways we can respond to future students and improve our market position though innovation and disruption. We build back from student experience to the technology not the other way round!”

Of course IT is not all about the disruptive technologies. The w w w. d e a k i n . e d u . a u

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platforms that run the operational side of things such as network software and hardware are nothing short of essential and in terms of scale are much larger. We have already spoken about the ties between the university and Cisco Systems on the innovation front, however Cisco is also a significant back office hardware and software provider, much of it supplied and maintained by Australian Cisco Master Partner Data#3, which also supplies Deakin’s Microsoft LAR (Large Account Reseller) and manages the computer hardware and software used across the campuses.

Innovation on the scale we see at Deakin is driven by an exponential increase in data capture, and big

data means heightened risk that it may be compromised. Nowhere is cybersecurity more important than in the academic world, and Confalonieri decided that the traditional approach whereby cybersecurity was centralised under the IT banner, managed by a central team, and embedded in technical operations, should be reviewed. “Ours is a 24/7 business, and we cannot afford any form of disruption. This is something we are very serious about,” he says.

Accordingly in August last year he created the new post of Head of Information Security and Risk within the IT team. Resilience in the face of the challenges posed by location information, IoT and cloud strategy will be strengthened by this

“OURS IS A 24/7 BUSINESS, AND WE CANNOT AFFORD ANY FORM OF DISRUPTION. THIS IS SOMETHING WE ARE VERY SERIOUS ABOUT.” – William Confalonieri, Vice President, CDO and CIO w w w. d e a k i n . e d u . a u

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appointment, helping the university to remain operational even in the face of a crisis like cyber-attack, natural disasters or systems failures, he emphasises.

William Confalonieri’s claim that Deakin is the digital leader in Australia is well supported. In 2014 he was named Australian CIO of the Year. The university was named by Telstra and Cisco as the 158

June 2016

leader in video-conferencing in the Oceania region. With over 250 rooms equipped with telepresence or video-conferencing, the majority of meetings – thousands a week – are now virtual and travel time between the campuses has been cut by as much as 80 hours a year for some individuals. Finally, in 2014 it was awarded Best Innovation in Oceania at the prestigious Wharton-

E D U C AT I O N

Company Information NAME

Deakin University INDUSTRY

Higher education E S TA B L I S H E D

1974 HEADQUARTERS

Geelong, Victoria Australia

QS Stars Awards, which he describes as the Oscars of the IT world. “And in December 2015 we won two awards against fierce competition from 560 other submissions from 31 countries: bronze in the regional awards and the global first prize in ICT services,” he says with pride. “These are all indications that we are doing well at the global scale – but as I already said, we still have a long way to go on this digital journey, and with technology changing overnight we can never stand still.” w w w. d e a k i n . e d u . a u

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CONNECTED WORLD

CTO Bruce Callow discusses the university’s technology initiatives Written by: Sasha Orman Produced by: Vince Kielty

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n 1971, Griffith University was founded with a visionary intent: to be a thoroughly progressive experience for its students and a hub of influence for the Pacific Region’s academic community.

That vision continues to inspire Griffith University’s goals today.

With five campuses throughout Queensland — including its Gold Coast campus, poised as a cornerstone of the region’s vibrant, planned Parklands Project — and significant technological updates, Griffith University continues on its path as an institution on the cutting edge.

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Aerial view of the Gold Coast Campus

DRIVING THE UNIVERSIT Y TOWA R D PR OG R E S S The IT department at Griffith University has been instrumental in undertaking several initiatives to enhance the institution’s efficiency and communication — from cloudbased infrastructure for its learning management system to heightened collaborative capabilities with virtual desktops and video calling.

“Over the last couple of years, we’ve been on a drive — particularly around agility, alignment, and flexibility — and we’re continuing that drive today,” says Bruce

E D U C AT I O N

Engineering students working on their solar car

Callow, Chief Technology Officer for Griffith University. “We’ve evolved from a purely technologyfocused department to one where we are partnering much closer with academic and business areas and pushing the boundaries of information management.”

This has involved making foundational changes in the way that Griffith University handles technology—prioritising it not just as a peripheral, but rather as an

important tool that can enhance all aspects of university life.

“We are working with the organisation, getting it to treat information as an asset and managing it accordingly, then bringing on the technology to support it as well,” says Callow.

“For a university that’s operating in a highly competitive local and global environment and looking to undertake change, we need to align our technology services with w w w. g r i ff i t h . e d u . a u

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Our software and hardware solutions are built for education and research and informed by best practices from more than 20 industries. With 370,000 customers in 145 countries as well as 29,000 developers and engineers working at Oracle, our customers benefit daily from our global experience. As a result, Oracle is #1 in 50 product and industry solution categories. In addition, our ecosystem includes 14 million developers in Oracle online communities and more than 20,000 partners that continuously extend the value of our solutions.

The Oracle Difference We understand that the marketplace for IT solutions is diverse and complicated, so we have developed a complete set of best-in-class, end-to-end solutions from hardware to analytics to make education, research, and administration simpler, less expensive, and more effective. Our complete, flexible, and easy-to-own-anduse solutions help organizations to quickly adopt and benefit from new learning, administrative, and research models.

Oracle recognizes that education and research are among humankind’s most powerful transformative forces, and that traditional models for education and research are undergoing enormous transformations and change. We are, therefore, committed to supporting education and research organizations with innovative solutions as they work to expand minds and spark new insight that can, ultimately, change organizations, communities, and lives.

Contact Us For more information about Oracle Research and Education Contact: Craig Binnington, Account Director Ph: 07 3031 7235 Website www.oracle.com or http://bit.ly/OracleHigherEducation

GRIFFITH UNIVERSITY

the major changes our university’s going through, and do this in the most cost effective way. All this while ensuring that the underlying foundation for critical systems is resilient.”

C O M M U N I C AT I O N AND INCLUSION Griffith University consists of five campuses, spanning from Brisbane through to the Gold Coast.

While they are close enough for academics and administration to travel between them for meetings and conferences, Griffith University has invested heavily in unifying its campuses with online communication and collaboration capabilities—and is already seeing positive results.

“That program is on track to deliver just under $1 million in travel savings per year, and that’s only local travel savings,” says Callow, adding that both the savings and the opportunities that this initiative provides on a wider scale are invaluable. “It has increased the ability for global research collaboration, and we are obviously 166

June 2016

Foyer Nathan Campus Library

opening up our capability for a global student environment.”

S T R AT E G I C PA R T N E R S H I P S F O R MUTUAL GROW TH Griffith University has propelled its IT improvements forward even further by strategically partnering with technology powerhouses

E D U C AT I O N

like Cisco, Oracle, and Microsoft.

By fostering a strong rapport and realizing mutual benefits, the university has been able to create ongoing trusted relationships with these partners for multiple projects through the years.

“We’ve had a strong strategic partnership as far as Cisco goes for some time—we worked with them

around our unified collaboration, and that was a very big driver and cost saver for us,” said Callow. “Subsequently they came onboard to further our relationship, particularly around their smart building capabilities.”

Cisco partnered with Griffith University most recently on the Sir Samuel Griffith Centre, a six-star w w w. g r i ff i t h . e d u . a u

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green building, constructed with the assistance of a federal government grant. This teaching and research facility is designed to operate for up to seven days off the electricity grid, through features like a hydrogen fuel cell and solar cells across its roof and siding, and has given Cisco and Griffith a chance to push their boundaries, while helping the university in the process.

“The building has allowed us to work within smart building design and to trial appropriate technologies such as extensive use of POE and 168

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virtual desktop environment delivery and management. All precursor work to moving the University to a virtualized digital workspace service,” says Callow. “On a good sunny day it actively feeds electricity back into the grid for the rest of our buildings on campus.”

M A I N TA I N I N G S E C U R I T Y IN A CONNECTED WORLD As Griffith University increases its connectivity, operational complexity and utilisation of cloud services,

E D U C AT I O N

one of the largest challenges for its technology department is making sure that information assets stay safe and secure. According to Callow, cyber security is a top priority for his team.

“Our fight there just continues to grow, and the cloud-based scenarios continue to complicate the environment and architecture,” he says. “We find that the new students and faculty are far more technology savvy and are in fact placing demands upon us for technology they want to use. There are many cloud-based services available that can assist them in putting their lecture content together, help them deliver presentations, and bring modeling and visualisation aspects that they can deliver. There are not hundreds but literally thousands of cloudbased services that academics, researchers and staff are looking to use. With some of those, particularly when you come down to the fine print, there can be issues and concerns around the contractual arrangements, intellectual property

“OUR FIGHT THERE JUST CONTINUES TO GROW, AND THE CLOUD-BASED SCENARIOS CONTINUE TO COMPLICATE THE ENVIRONMENT AND ARCHITECTURE.” - Bruce Callow, Chief Technology Officer for Griffith University

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Collaborative student space Logan Campus

and privacy. So while I need to ensure they have access to appropriate tools and services, my problem is how to add governance around that to ensure that cyber security, intellectual property and privacy controls are in place. These controls must, at the same time, be balanced with the agility and flexibility in allowing them to use it.”

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The challenges increase as his team must analyse whether new cloud services are up to both governance standards and the university’s own cyber security requirements. To streamline this process, Griffith University’s IT team is exploring ways in which users can actually help gauge the safety of services and identify issues, thereby

E D U C AT I O N

preventing a governance bottleneck and leaving the department free to tackle the most serious issues.

“We have to drive for agile process and capability, where the users can actually do some selfchecks around these systems they need to use,” said Callow, adding that a service which failed to meet requirements during a self-

check would be subject to a more thorough investigation by the IT department. “If we can deliver that agile approach, without always referring the user back to us, the IT department moves away from being the bottleneck. It’s really getting that balance of security and flexibility, and taking a risk-based approach to our decision and approval making.” w w w. g r i ff i t h . e d u . a u

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STRIKING A BALANCE “There are four terms I’ve been driving for a while now with my staff: agility, flexibility, alignment and efficiency,” says Callow.

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June 2016

balance across the three domains of partnership, development, and support for the new initiatives once they’re in place. As well, Griffith is undertaking to change its approach to sourcing information and technology services through

E D U C AT I O N

Company Information NAME

Griffith University INDUSTRY

Education HEAD OFFICE

Southport, Queensland Australia FOUNDED

1971 NUMBER OF STUDENTS

44,000

establishing strategic partnership arrangements that will accelerate the use of cloud based services and utilise an ‘as-a-service’ model.

As Griffith University continues with its tech initiatives, the balance across agility, flexibility, alignment and efficiency comes ever closer to falling into place. w w w. g r i ff i t h . e d u . a u

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INNOVATING

THE CLOUD

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A

lot has been rightly made of the cost-savings benefits of cloud computing.

But if that’s why you’re considering moving your applications, hardware, development tools—or any combination thereof—into the cloud, you’re going to be in for a surprise.

Here’s the thing: Cloud computing saves organizations a lot of money by allowing them to shift the cost of maintaining hardware, databases, and applications to the tech provider experts. It also forces companies to stop customizing software to suit outdated, idiosyncratic business processes, and at the same time 176

June 2016

it reduces the cost of supporting that software—an activity that often costs more than the original software itself did.

But if that were the only benefit of moving to the cloud, it would barely be worth the effort.

Moving all that technology out of your own data center and onto your tech provider’s stack isn’t without its own costs.

And here’s another thing about that cost savings: Once you’re done with the shift to the cloud, those savings are banked and part of the new normal. In other words, management will throw you only one

CLOUD

“DON’T MOVE TO THE CLOUD JUST TO IMPROVE YOUR COST STRUCTURE.” - Tim Ebbeck is Oracle’s regional

parade, if that. And then it’s back to the same old budget wars.

managing director for Australia and New Zealand

MAKE THE CLOUD A H O LI S T I C PA R T O F Y O U R S T R AT E G Y So what’s the point then? The point is that cloud computing must be a reflection of your business strategy.

The cloud is the tactic that makes your overall strategy shine. And here’s how: Use your savings to finance other changes: Right away. A very large financial institution did just that after moving to a cloud talent management application, changing w w w. o r a c l e . c o m

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its HR policies immediately.

It did away with the tiresome and mostly ineffective annual personnel reviews process, substituting the new capabilities of Oracle HCM Cloud to give employees ongoing feedback and coaching, raising productivity and morale.

Remember, the cost savings are a use-it-or-lose-it proposition.

Companies should therefore use cloud computing to facilitate broader strategic goals, such as to improve employee performance and analyze data to improve decisionmaking capabilities. And they should measure those benefits.

Don’t outsource a mess to the cloud. Many customizations to existing applications have merely codified practices built up over decades, based on the perceived needs of small elements of the organization. It’s important to identify and eliminate anachronistic processes before moving to the cloud. Just as traditional IT outsourcing failed to produce significant savings if the customer’s internal processes were inadequate, the same holds true for moving on178

June 2016

premises IT to the cloud.

The cloud should be the impetus to clean up islands of information and gobs of data in a variety of incompatible models and formats.

Change your business— not incrementally, but at the foundation—while the getting is still good: Too often, companies make

CLOUD

changes when times are tough, and that impacts the quality of decision-making and the depth of the changes. Changes made in a positive business climate, however, will be viewed internally as ahead of the curve rather than a knee-jerk reaction. But these changes must be championed visibly by senior company leaders,

sometimes including the board of directors. It helps to remember that it’s companies that do the right things—focusing on the most profitable customers, for example— are the ones that are most at risk of disruption.

Organizations are under threat of disruption. One of our customers, one of the largest banks in our w w w. o r a c l e . c o m

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region, is making significant strategic changes to its operations to meet this threat, slowly transitioning most of its IT to the cloud. With its huge footprint and legacy, this isn’t something it can do overnight—or during a crisis—so it’s quite a compliment to its leadership that it has seen fit to undergo the complex transition now.

Force change throughout the organization: Whenever the new chief digital officer or chief innovation officer reports into the IT department, chances are that person is just an IT director wearing 180

June 2016

a new hat. Making those new titles report through operations, on the other hand, means the business is taking responsibility for changes that may begin with IT but must ripple throughout the organization.

IT must be a tool in everyone’s toolbox.

Consider spinning off an entirely new entity: One of the world’s top airlines decided that it couldn’t turn on a dime. So in the face of increased competition from discount airlines, it spun off an entirely new airline to compete with the disruptors. Building from

ORACLE

scratch, it was able to launch its IT department entirely from the cloud, thanks to the ability to have nearinstant IT provisioning and a nearzero CapEx requirement.

Create ‘intrapreneurship:’ Consider how many times your employees have come up with great ideas that would benefit 182

June 2016

your customers or the rest of the organization—it’s the classic, “if only we had an app-for-that” argument.

The downside risks of employing a couple of programmers— perhaps some tech savvy millennials—to rapidly prototype new employee ideas that meet your standards, pales in comparison to the potential

CLOUD

for new revenue streams and/or the loyalty that would be created. The barriers have never been lower and investment is minimal as the creative process could begin in the cloud and be brought back on premise if and when necessary. Case in point is a bank in Australia that recently created a rapid innovation center

based on this exact premise.

IMPOSE A NEW DISCIPLINE Indeed, business and industry disruption is everywhere. Even the consulting industry, which for decades lived off the bounty of the IT landscape by selling expensive w w w. o r a c l e . c o m

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customizations, is having to rethink its business model. A hidden benefit of the cloud is that it imposes a discipline on businesses. Not every process is a competitive advantage, and those that aren’t should be replaced with cloud-based standard practices. This new reality will give rise to new consulting models, such as helping companies extend their software-as-a-service apps, rather than the old customization model.

In the old way of doing things, IT organizations made purchasing decisions using a long requirementsgathering phase, followed by a long 184

June 2016

implementation phase, followed by an even longer customization phase.

The new way of doing things circumvents the drawn-out procurement, implementation, and customization phases. It allows organizations to reap the benefits of innovation from cloud providers as they come to market, not after months-long upgrade cycles.

Established companies often move their systems to the cloud in phases, keeping systems that provide true differentiation in-house, while benefiting from competition

CLOUD

among cloud providers to ensure that even standard processes benefit from a constant stream of innovative new features.

Technology has been an enabler of organizations for a very long time, but the technology itself hasn’t been flexible enough to allow companies to move to a materially different model. This

sort of flexibility is table-stakes for cloud software and hardware as IT must itself be inherently capable of serving multiple large organizations accessing the same footprint at the same time.

Yes, the cost benefits of cloud are enticing, especially early on. But in the long run, the real benefits are in the realm of business innovation. w w w. o r a c l e . c o m

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AMONG

THE MACAWS MACA Ltd has recently entered the mining market in South America with great success and is rapidly making itself part of the Brazilian mining ecosystem Written by: John O’Hanlon | Produced by: Glen White

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MACA

Volvo fleet at Antas

M

ACA are industry leaders throughout Australia known as a competent and established contractor specialising in earthmoving, civil work and specialised crushing and screening work for mining projects. It is widely acknowledged that the mining industry is having a hard time, particularly the Western 188

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Australian iron ore sector. Projects are running at capacity to get as much upside from volumes as possible, but long term prospects remain gloomy.

STRENGTH IN DIVERSE PROJECTS MACA’s management, noting current mining market trends,

MINING

diversified at the time of the global financial crisis, diversifying across commodities through gold, nickel, iron ore and diamond projects in Western Australia. Its most timely and visionary action was to look abroad; in 2013, it sent a team to Brazil to explore opportunities in the country’s vibrant mining economy.

“Our systems and structure

weren’t in place to venture abroad,” said Mitch Wallace, General Manager for MACA Brazil Operations, “but we looked closely at the Tucano project for Beadell Resources, an Australian company that had a gold project up in Amapá State in the northern region of Brazil.

The following year we came over to Brazil in earnest and, in November w w w. m a c a . n e t . a u

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Client

Beadell Resources Limited

Location

AmapĂĄ State - Brazil

192

June 2016

started our first project for Beadell, which was to provide mining services through management and plant rental for Beadell at its Tucano project.�

Tucano is an established gold mine that has been producing for Beadell since 2012, and from it, Beadell produced more than 122,000 ounces in 2015. It is a huge project, covering 2,500 square kilometers that hold reserves of 5 million ounces and with expansions highly likely. Convinced that they could make a difference, the MACA team injected capital into the project and set about doing the work they

MINING

know best.

Though they are on the same latitude, Brazil and Western Australia are very different environments. The most apparent difference is the weather: very rarely is a WA project held up by rain, whereas North of the Amazon River, annual rainfall is measured in meters as opposed to millimeters, most of it falling between January and May. Generally, service providers simply shut down during these months, but MACA understands that the primary goal of every miner in the world is to move ore, and that for every ton of

Wet season at Tucano site

ore delivered to the stockpile results in seven or eight tons of waste matter that has to be shifted. “It was hard getting things moving last year,” said Wallace. “One truck with a flat tire sat submerged in mud up to its front bumper for eight weeks.

Our focus was to safely establish haul roads and operating systems so we could operate through the wet season.”

With Tucano well under way, MACA started its second Brazil contract in November 2015: a five-year deal to support Avanco Resources at its Antas project in the

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MACA

state of Pará. This is a high grade – better than three percent – copper project with gold credits. MACA currently has 75 direct employees on site engaged in mining services, plant management and drill and blast activities. At present, this is a surface mine, but MACA plans to diversify in underground mining services and hopefully continue support and grow with its client Avanco.

In both cases, according to Wallace, MACA has chosen to work with a client it already knows well.

“We like working with small and mid

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tier clients because you know the management is not going to change: we can build a strong relationship with them. We are aligning ourselves with the mid tier people and growing with them,” he said.

SOURCING LOCAL AS SETS In all, the company employs around 150 national employees directly and manages as many as 500 across both projects. This is in addition to the 16 expatriates in training and technical advisory roles.

“Our main aim is to create

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195

Turnaround at Tucano commenced. Improved operational efficiency and exploration potential will underpin future growth.

Beadell Resources Limited is an ASX listed gold producer with forecast gold production in 2016 of 145,000 – 160,000 ounces from its 100% owned Tucano mine, North of Brazil.

Tucano has an existing multi-million ounce JORC gold resource with significant exploration potential.

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MACA

sustainable employment here in Brazil, and continuously improve mining practices ,” said Wallace.

“This will be achieved through continuous improvement, upskilling our workforce and introducing safe and efficient mining practices. One of the prevalent barriers throughout South America is that people are operationally single-tasked. It’s our goal to introduce a multi-skilled and diversified workforce. We have identified some quick fixes

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and long-term solutions, and will implement programs so that we can keep continuously improving.

Brazilian people are passionate and enthusiastic about learning new things, and we have to be able to offer an attractive package to source and retain the best people within the sector.”

Working in Brazil and negotiating recruitment, tax and contract law issues is complex, and having a competent local partner is vital.

Start of shift - Toolbox meeting in Tucano

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197

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MACA

MACA was fortunate in being able to form an association with FFA Legal and its founder Luis Azevedo, a well-respected mining geologist and corporate attorney.

“The support FFA has provided MACA has enabled us to focus on what we do best: provide reliable and safe support services to our clients and the broader resource sector. Without the team at FFA, we wouldn’t have been as fortunate in experiencing the early success we have seen,” said Wallace.

“Procurement and best practice asset management is our bread and butter at MACA and my background throughout the last 20-25 years,” he added. Operating in Brazil is a completely different ball game

MINING

with barriers to entry designed to encourage local manufacturing places and huge restrictions on importation and foreign investment.

The majority of large mining equipment needed for mining is not made in Brazil though, and imported goods are extremely expensive.

For example, a earthmoving tire is typically 60% more expensive in Brazil than in Australia. Wallace said that the outlook does look promising, however, given that a change in government could create a possibility of changes within Brazil.

Many service providers will try to save and cut costs by sourcing equipment off shore, but Wallace does not agree with that strategy.

“We are proud to have been able to continue these relationships with their South America offices. Companies such as Liebherr and Orica were very quick to assist us with the transition into the new market place, offering us assistance and advice to navigate through the processes to get work done.”

– Mitch Wallace, General Manager (Brazil Operations)

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EXECUTIVE MANAGEMENT

CHRIS TUCKWELL Managing Director and Chief Executive Officer B Eng (Construction)

MITCH WALLACE General Manager (Brazil Operations)

GEOFF BAKER Executive Director of Operations

TIM GOOCH General Manager (Mining) B Eng (Mining)

PETER GILFORD Chief Financial Officer / Company Secretary BCom, CA

MAURICE DESSAUVAGIE General Manager (Civil) B Eng (Civil)

MACA

“We have always sourced our equipment through OEM suppliers to secure their support. Our relationship with Tracbel and its CEO Luiz Gustavo R. Magalhães Pereira has been unbelievably helpful to us. Without his assistance and support, we would not be where we are today,” Wallace said.

Tracbel is a family-owned business, based in Minas Gerais and with 25 branches covering 75 percent of Brazil. Tracbel is a

MINING

licensed dealer for many OEMs, including Volvo and Michelin.

MACA has always been proud of its long standing relationships with many companies in Australia.

Loyalty, customer services and reputation are often more important than price. “We are proud to have been able to continue these relationships with their South America offices,” said Wallace.

“Companies such as Liebherr and Orica were very quick to assist

Mitch Wallace and Geoff Baker with experts at the Antas site

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201

CO M AM CA PA N Y N A M E

First load at Antas site

us with the transition into the new market place, offering us assistance and advice to navigate through the processes to get work done.”

A C O M PA N Y WITH A HEART There are plenty of opportunities for expansion in Brazil, and MACA’s 202

June 2016

contracts department is working on prospects at present, but the company won’t overstretch itself at the expense of its existing clients.

The two projects in the North take up a lot of time, even for a hands-on company like MACA. Travel around Brazil is challenging and commuting between Rio de Janeiro—where

MINING

Antas

Wallace’s office is located—and Amapá State is several thousand kilometers and therefore absorbs a lot of valuable time.

Though Wallace spends extended periods away and only gets to see his family back in Australia once every three or four months on average, boredom is never his

Resource

Copper

Client

Avanco Resources Limited

Location

Pará State - Brazil

problem. MACA is a company with a heart, actively supporting a range of Not-for-Profit organizations and community programs. Wallace manages to find time to contribute to these efforts. The Hawaiian Ride for Youth (HRFY) began in 2003 when a small group of recreational cyclists in Australia decided to raise w w w. m a c a . n e t . a u

203

MACA

Orica provides market-leading customer solutions to improve productivity and resource efficiency in the mining, quarrying, oil and gas and infrastructure sectors. An Australian company with a global footprint, Orica has a diverse workforce of over 14,000 people, with operations in more than 50 countries and customers in more than 100.

Orica’s value of No Accidents Today underpins our commitment to the safety, health and wellbeing of our people and customers, the environment, and the communities in which we operate.

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funds for Youth Focus to assist in the prevention of youth suicide, depression and self-harm.

“2016 was my fourth HRFY. Though working abroad made training a little difficult, the sacrifice required to ride a few kilometers became insignificant, compared to the suffering many young people face with life’s challenges,” Wallace said. “I flew back to Australia 204

June 2016

Ride to Conquer Cancer

on March 23 to be a part of this amazing event that reaches out to so many young people.”

HRFY is held annually in March across five days, with riders covering over 700 kilometers. “On our journey, we stop at high schools to engage the students in the issues of youth suicide, depression and self-harm and the services that Youth Focus provides. The riders

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Company Information NAME

MACA INDUSTRY

Mining HEADQUARTERS

Welshpool, Western Australia BRAZIL PROJECTS

Tucano Resource - Gold Antas Resource - Copper

also share their personal stories and experiences as many have been touched in some way by these very personal issues,” he said.

Another bike ride, the MACA Ride to Conquer Cancer 2016 in support of the Harry Perkins Institute of Medical Research, takes place in Perth. Last year 300 MACA riders raised $1.2 million for this cause. This may not seem very relevant to Brazil, but cancer is a global problem, and among others Tracbel’s Luiz Gustavo Pereira is enthusiastically supporting the event.

MINING SERVICES

Load and Haul Drill and Blast Crush and Screen Materials Handling

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