Business Review Australia - June 2017

June 2017

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Dacian Gold Spearheading Australia’s gold mining resurgence

TALKING

BIZ WITH: Eptec Group

PROFILE Sustainable in a Generation We speak to Jason Phyland, Supply and Commercial Director at Mars Food Australia

TOP10 Australian transport & logistics companies

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EDITOR’S COMMENT

HELLO and

WELCOME to the June issue of

Business Review Australia.

FOR OUR LEAD feature, we chat sustainability with Jason Phyland, Supply and Commercial Director at Mars Food Australia. Phyland got us thinking about innovation, as did our expert contributor George Lucas.

Lucas (CEO of Acorns) explains why he’s positive about fintech’s prospects in Australia. Business, government and consumers all have a role to play, Lucas explains.

Aussie pride continues with our monthly list – we determine our top 10 transport and logistics companies

from Australia and are highly valued by Australian consumers.

Also, make sure to browse our exclusive company reports. For an in-depth insight into what leading Australian businesses are currently developing, read our interviews with Dacian Gold, Eptec Group and Krispy Kreme Australia.

Enjoy your read, and tweet us your feedback @BizReviewAU

Tom Wadlow Editor tom.wadlow@bizclikmedia.com 3

CONTENTS

PROFILE

P56

P06 Sustainable in a Generation TECHNOLOGY

P14 Why fintech has an exciting future in Australia – if we act now TOP10

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P20

TOP

Australian companies

transport & logistics

P34 P68

C O M PA N Y PROFILES MINING 56 Dacian Gold

CONSTRUCTION 68 Eptec Group 80 Australian Information Industry Association (AIIA)

FOOD & DRINK 90 Krispy Kreme Australia

ENERGY 102 Level Crossings Authority

P48

Women on Top

P80 P90

P122

PROFILE

SUSTAINABLE

IN A

GENERATION W r i t t e n b y : C AT H E R I N E R O W E L L

We speak to Jason Phyland, Supply and Commercial Director at Mars Food Australia who is spearheading the company’s sustainable supply chain operations OFFERING OVER 500 products, exporting to New Zealand and throughout Asia Pacific is Mars Food Australia (MFA), owned by Mars Incorporated. Mars, Incorporated is a family owned business with more than a century of history, working globally across six different segments: Mars Food, Mars Petcare, Mars Chocolate, Wrigley, Mars Drinks, and Mars Symbioscience.

Mars Food Australia has over 300 employees, named Associates, creating healthy, easy and affordable meal solutions for Australians since 1967, MFA has a cross segment sales office in Sydney’s Macquarie Park and Melbourne, in addition to the Wyong office and manufacturing plant on the NSW Central Coast. The company’s manufacturing plant, situated on the NSW Central Coast is located just 90 minutes away from Sydney’s CBD. Mars Food Australia is in nine out of 10 Australian homes and produces the iconic brands: MASTERFOODS®, DOLMIO®, KAN TONG®, and

UNCLE BEN’S®. Responsible for Mars Food Australia’s supply chain operations is Jason Phyland. Previous experience working as Supply Director for Mars Petcare in Thailand and Operations Manager in Australia fully cemented Phyland’s position within the company’s various divisions, and he is behind the drive for Mars to become one of the most sustainable companies in Australia. “Sustainability is always front of mind for us, whether in our own operations or deep within in our supply chain,” he explains. “Our objective is to work with our customers to grow both businesses and in a sustainable way which includes efficiency and sustainable sourcing.”

With this in mind, all Associates at Mars are working towards being ‘Sustainable in a Generation’ which includes investing in renewable energy, reducing water usage, reducing energy usage, maintaining zero waste to landfill, and a packaging material reduction. Over 80,000 Associates across 77 countries are

PROFILE

also united by Mars’ five principles: Quality, Efficiency, Responsibility, Mutuality and Freedom, with the longterm aim to create relationships with stakeholders which deliver key growth that the company can be proud of.

Sustainable in a Generation Mars’ ‘Sustainable in a Generation’ initiative has enabled company growth, increased value, whilst 8

June 2017

reducing cost and greenhouse gas emissions. Phyland‘s operations are therefore aligned against four core strategies: operational efficiency in energy reduction, capital efficiency, placing increased investment in processes and equipment, new technologies and embedding renewable energy sources through collaborative working and key partnerships.

S U S TA I N A B L E I N A G E N E R AT I O N

An example of this is MFA’s purpose-built Cogeneration facility, which independently produces energy from the grid, reducing CO2 emissions by 3,600 tonnes per year.

MFA’s capacity of nine operating lines, including high speed glass and ready to heat, is more than 126,000T annually. Phyland explains: “We’ve seen savings of more than seven percent on the site electricity

demand and during full operation, the cogeneration plant enables us to generate an average of 75-85 percent of the site’s electrical needs.”

Throughout the company’s operations, Mars achieved a reduction in greenhouse gas emissions by 25 percent in 2015, but has the long term aim to eliminate all fossil fuel energy and greenhouse gas emissions by 2040. Consequently, a Greenhouse 9

PROFILE

Gas Protocol has been implemented in order to reduce emissions further across the supply chain, with a planned 40 percent reduction by 2020, with an increase in on-site and off-site renewable projects.

LED lights have been installed across the site, leading to “a reduction in energy use by six percent, the equivalent of the power used by 160 homes for an entire year,� according to Phyland. With such changes, quality control and monitoring has

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also been embedded to ensure these initiatives do not lose their momentum.

Sustainable operations MFA’s ambition to become increasingly sustainable also focusses on the packaging process, where Packaging Sustainability Guidelines are designed to reduce the amount of material, waste and energy used and ensure an increase in recycled material within this process. For

S U S TA I N A B L E I N A G E N E R AT I O N

example, the company has adapted packaging for the Masterfoods herb and spice glass jars, which has reduced the weight by up to 10 percent. This will also ensure a reduction in transportation costs and greenhouse gas emissions.

Phyland comments: “By using less glass, there were efficiency savings in the manufacturing of the jars, transportation and fuel saving benefits”. In addition, the company has introduced recyclable material for the labels and bottles of Masterfoods squeezy tomato sauce, which has enabled the company “to reduce landfill by 10 tonnes,” reflects Phyland.

Rachel Goldstein, Global Sustainability Director Scientific and Regulatory Affairs, Mars, Incorporated, has stated on Mars’ website: “The sustainability of wrapping is becoming a growing concern for our customers. We’re working hard to make it as easy as possible for them to recycle, and be confident that Mars packs aim to have the lowest possible impact on the environment, while still providing the quality and safety our customers know and trust.” Such extensive

Jason Phyland, Supply and Commercial Director at Mars Food Australia effort has enabled MFA to achieve zero waste to landfill status across all its factories, and was the first of the 126 Mars factories to adopt the zero waste to landfill ambition.

Mars’ efforts also filter into its water and waste operations. By adopting a water strategy, MFA is able to monitor the quantity of water used, its source and traceability, local levels of water stress and wastewater quality.

Since 2009, MFA has captured and treated 250,000 litres of water each day through the adoption of a Trade Waste Water Conservation facility, which is situated on site. Phyland explains that grey water is used for 11

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S U S TA I N A B L E I N A G E N E R AT I O N

cooling and flushing, whilst town water is used for products. However, the company is working towards reducing water usage by three percent per annum. Nonetheless, since the end of 2015, none of Mars’ sites send waste of landfill, and four of Wrigley’s factories are part of this process – one of which is situated in Australia. “Regardless of the volume we produce our aim is to have reduced water usage by 15 percent in the next five years,” comments Phyland.

So, what’s next for the company?

Phyland explains that MFA is “constantly monitoring and looking for ways to be more efficient and sustainable,” and will aim to embed sustainable energy, such as wind and solar to power all of Mars’ Australian operations and significantly reduce carbon emissions across the supply chain, optimising the logistics network and factories, and maintaining zero waste to landfill. Watch this space…

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TECHNOLOGY

Why FINTECH

has an exciting future in Australia –

IF WE ACT NOW

Writ ten by: GEORGE LUCAS , CEO, ACORNS AUSTR ALIA

The country has a chance to build on its position as a world leader, with the industry forecast to be worth AU$4.2 billion by 2020 SINCE PRIME MINISTER Malcolm Turnbull first announced Australia’s Innovation Agenda, all eyes have been on the fintech sector. The promise of the industry has been to revolutionise how consumers and businesses interact and to prop up innovation as a driver of economic activity.

Australia is already a world leader in fintech adoption. The deployment of contactless payments has been widely adopted by consumers, with Westpac predicting Australia will be a cashless society by 2022.

It comes as no surprise then that the fintech sector is forecast to grow at 76 per cent a year to reach $4.2 billion by 2020. The economic

TECHNOLOGY impact of this will be extensive – but only if the mechanisms it needs to be competitive are put in place.

Currently the fintech implemented here is a mix of overseas and home-grown innovations, but the vast majority is bank-led. With such limited competition in the financial sector, if one of the Big Four make a change in the services offered and the technology used to deliver it, it will be taken up by large swathes of the population almost by default just due to penetration.

One of the key benefits of fintech is its potential to introduce competition in a sector that is dominated by big business. By its very nature, fintech can disrupt the status quo by finding innovative ways to provide financial services, putting consumer needs and experience at the centre of its proposition and providing real choice.

Acorns, a design-winning app which provides inexpensive financial services to consumers while building their financial literacy, is just one example of this and has already attracted hundreds of thousands of consumers.

It is much of what the government was trying to achieve when it made its announcement encouraging fintech 16

June 2017

in Australia. But the wider industry needs more government action to flourish in an environment where technology is changing so quickly.

Call for clarity Chief among these changes is the need for clear guidelines from the government on data ownership, privacy and the ePayment Code, which is designed to protect consumers. In the development space, Australia is rapidly falling behind other nations such as the UK and New Zealand, where laws have been implemented to allow broader and quicker access to data for R&D purposes. It is an economic imperative that Australia doesn’t just ride the innovation wave, but leads it and this cannot be done without clarity in the industry.

Data ownership is under inquiry by the Productivity Commission which is due to deliver its recommendation to the government later this month.

What it is likely to propose is a Comprehensive Right to data, giving people more control over their information. Currently, it is not clear if individuals have a right to ownership

WHY FINTECH HAS AN EXCITING FUTURE IN AUSTRALIA

of the data that is collected about them, something most people are not aware of. While people will be able to edit and share the data held by banks, the Productivity Commissions’ recommendation could mean the banks will still control how, when and who it is shared with. This current state of ownership over data places additional anti-competitive

One of the key BENEFITS OF FINTECH is its POTENTIAL TO INTRODUCE COMPETITION in a sector that is dominated by big business

restrictions on fintech by limiting the data it can or cannot gain access to. This is hardly an outcome giving power to the consumer.

But it’s not the only change that needs to happen to build competition in the industry. Improvements need to be made to empower ASIC to foster competition. ASIC chairman Greg Medcraft has previously supported the idea of added data sharing and the legislation of the ePayment code (which was recommended in the FSI), but questioned if ASIC is the

George Lucas, CEO, Acorns Australia

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WHY FINTECH HAS AN EXCITING FUTURE IN AUSTRALIA

right mechanism to enforce such a regime. In its current iteration, ASIC couldn’t have such a remit but there would be value in expanding ASIC’s powers to include greater powers to foster competition among financial services companies and the banks. Mechanisms to encourage competition, like in the UK, are integral if fintech is to reach its full potential in Australia.

The burgeoning fintech industry presents an opportunity to foster real competition in the market, to produce fairer financial outcomes

for Australians and build better financial literacy. It is also a driver of our economy and will produce jobs looking to the future, rather than recreating the industries of the past.

The future of fintech in Australia is bright and interest from consumers is increasing. But if the industry is to reach its full potential then investment needs to be made to facilitate an environment that allows innovation to grow. This was the vision laid out in the government’s Innovation Agenda; it’s time to make it a reality.

By 2020

the Australian fintech sector is predicted to be

WORTH $4.2

BILLION

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TOP 10

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TOP

Australian companies

transport & logistics

Take a look at our top 10 transport and logistics companies which originate from Australia and are highly valued

by Australian consumers

Written by: C AT H E R I N E R O W E L L

TOP 10

TRANSPORT AND LOGISTICS is big business in Australia, employing over 1.2 million people who provide essential services in the transportation of goods across the country. The industry contributes billions to the economy, bringing increased competition, lower prices and significant choice for consumers with products and consumables.

ESTABLISHED IN 1975, Glen Cameron Group now encompasses a fleet of 350 vehicles, offering transportation, logistics and supply chain services for customers. The company has a loyal customer base and a strong focus on customer service, and is highly valued by consumers.

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June 2017

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A U S T R A L I A N T R A N S P O R T & L O G I S T I C S C O M PA N I E S

FOUNDED IN 1989, AirRoad has become one of the most renowned freight companies in Australia. With services such as AirRoad Express, alongside specialised and logistics services, the company provides high value, low cost services for consumers within road freight distribution and movement of goods. Undergoing a number of acquisitions, the company was also the first Australian logistics company to place barcode scanning at the forefront of their services, taking customer service to the next level.

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TOP 10

8 ESTABLISHED IN 1974, freight company SCT Logistics has grown its operations throughout Australia, diversifying their services within several areas, such as Refrigerated Transport Services and Contract Warehousing, in addition to providing

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June 2017

tailored solutions within the rail sector.

SCT Logistics has also recently launched services across the Melbourne – Brisbane interstate corridor, increasing competition between the region’s major railroad corridors.

A U S T R A L I A N T R A N S P O R T & L O G I S T I C S C O M PA N I E S

SITUATED ACROSS AUSTRALIA and New Zealand, Kings Transport & Logistics provides services which range from 3PL Warehousing & Distribution to supplying technological solutions for customers. The company also has its own Building Logistics Management (BLM) service, which enables customers to gain a complete logistics package.

Similarly to SCT Logistics, the company incorporates an express service, and now has over a thousand subcontracted and company owned transport vehicles to cater to all customers wishing to transport goods across the country.

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TOP 10

6 SINCE ITS LAUNCH in 2010, QUBE Holdings has been slowly expanding its import and export logistics operations, with freight facilities now in 29 ports across Australia, alongside vital rail freight services.

The company established the Qube Container Park in 2015 in order to merge all shipping lines under its umbrella.

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June 2017

A U S T R A L I A N T R A N S P O R T & L O G I S T I C S C O M PA N I E S

ONE OF THE oldest Australian companies in the business, Brambles Limited is operational in over 60 countries, with operations spanning both the US and Europe, incorporating over 14,000 employees through their CHEP and IFCO brands. The company has over 850 service centres and three main transportation divisions: fast moving consumables, reusable plastic crates (RPCs) (of

5

which the company acquired IFCO systems in 2011), and containers, all which contain several subdivisions.

The company promotes a sustainable logistics model, and adopts a sustainability framework that ensures increased value, reduced cost and significant cost efficiencies. Since 2010, the company has undergone several acquisitions, such as Paramount Pallet, Pallecon and Transpac in order to enter further markets and develop operations.

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TOP 10

FOUNDED IN 1956, Linfox has become one of the largest privately owned logistic companies in Australia, placing an increased focus on sustainability initiatives. With over 5,000 trucks in its fleet, Linfox has diversified its services, spanning over 10 countries, employing over 20,000 people and utilising key technologies to reduce emissions.

A large portion of the company’s operations is situated in Asia, entering several markets. However,

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June 2017

4 the international company has also expanded its operations through a number of acquisitions, such as FCL Interstate Transport Services and Mayne Logistics.

The company encompasses 8,000,000 square feet of retail space and, surprisingly, also owns the Phillip Island Grand Prix Racetrack, the Fox Classic Car Collection, and is responsible for Australia’s Avalon and Essendon airports.

A U S T R A L I A N T R A N S P O R T & L O G I S T I C S C O M PA N I E S

AUSTRALIA POST OPERATES the country’s largest retail network, and is responsible for the safe delivery of three billion letters each year. The provider only has one shareholder – the Australian Government. The service is highly valued, delivering to 190 countries, in addition to providing online services for customers.

The service is the first in Australia to utilise 100 percent electronic commercial vans, placing a heavy

3

emphasis on sustainability within its transport and logistics operations, alongside reusing and recycling used packaging. With the aim to reduce carbon emissions, Australia Post has also introduced new motorbikes and fleets which harness fuel efficiency.

To this effect, Hobart will become the first city to pilot a new threewheel electric delivery vehicle, which will hold around 100 parcels, or over a thousand letters.

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TOP 10

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June 2017

A U S T R A L I A N T R A N S P O R T & L O G I S T I C S C O M PA N I E S

PART OF THE Australian Trucking Association and the Chartered Institute of Logistics & Transport Australia, Pacific National focuses on four main areas: bulk haulage, coal, intermodal and steel, delivering key partnerships through the transportation of goods and services

in order to grow its business.

One of the largest coal haulage operators in Australia, the company utilises specialised equipment to support a reduction in transportation costs, such as balloon loops and specialised wagons to ensure quality services.

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TOP 10

PREVIOUSLY OWNED BY the Government of Queensland, Aurizon is Australia’s largest private rail freight provider, operating within four divisions: network, coal, iron ore and freight. The company’s partnerships extend to areas such as Asia, China and India, moving around 500,000 tonnes of freight per day.

The company also operates one of the largest coal rail systems, connecting with three major ports, with 15,000 wagons under its umbrella, in addition to an array of road vehicles.

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June 2017

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A U S T R A L I A N T R A N S P O R T & L O G I S T I C S C O M PA N I E S

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GETTING AUSTRALIAN TRANSPORT ON TRACK

Bombardier Transportation is the world’s largest manufacturer of rail and aerospace technology. Three of its key players tell Niki Waldegrave how it’s driving growth and sustainable change across Australia’s rail ecosystem Written by Niki Waldegrave

T R A N S P O R TAT I O N

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B O M B A R D I E R T R A N S P O R TAT I O N A U S T R A L I A

B

ombardier is transforming the way people move around the world. Looking far into the future whilst delivering today, the team at Bombardier continue to push the boundaries and evolve mobility worldwide by answering the call for more efficient, sustainable, and enjoyable rail transportation across the globe.

As the world’s leading manufacturer of both planes and trains, Bombardier has built an extensive and diverse portfolio of winning mobility solutions.

Everywhere people travel by land and in the air, a Bombardier product is ready to transport them. From category-defining business jets and commercial aircraft designed for the challenges of today, to sleek high speed trains and public transit that’s smarter than ever.

In Australia, Bombardier Transportation covers the full spectrum of rail solutions, ranging from trains to sub-systems, maintenance services, and system integration and signaling, which provide integrated solutions

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June 2017

and benefits for customers, operators and passengers alike.

Bombardier’s Growth Strategy across Australia The Australian arm of the multinational transport giant is committed to growing their 1,000+ strong workforce and 60+ year-long footprint to support the local rail manufacturing industry, increase opportunities for skilled employment and, ultimately, transform public transport across Australia.

With a fresh outlook and determined leadership team by his side Bombardier Australia’s Managing Director, Andrew Dudgeon, explains Bombardier’s growth strategy and contributions to Australia’s growing rail and manufacturing industry.

“Bombardier in Australia has a very bright and exciting future ahead,” he says. “We have wonderful partnerships across industry, and have rail contracts in Victoria, South Australia, West Australia and Queensland – and we’re very excited about the emerging opportunities in New South Wales.”

T R A N S P O R TAT I O N

“BOMBARDIER IN AUSTRALIA HAS A VERY

BRIGHT AND EXCITING FUTURE AHEAD” – Andrew Dudgeon, Managing Director for Bombardier Australia

As part of its expansion strategy, Bombardier has engaged with industry in New South Wales (NSW) on various future light and heavy rail projects across the state, and are looking at opportunities to provide best practice, local solutions and expertise in the areas of advanced manufacturing and digital rail technology.

“Globally, we’re seeing a significant behavioral shift in the way people use public transport, and what they’ve come to expect,” adds Dudgeon.

“The next generation of technologydriven millennials want – demand, in fact - a more available, efficient and connected transport experience. They need to move fluidly and comfortably through traffic and get to work, home, to see family and friends.”

With the Victorian government investing heavily in new rail infrastructure with high capacity metro and regional trains, the state has become the envy of others with the implementation of the 10 Year Victorian Rollingstock Trams, Trains, Jobs Strategy. Dudgeon says Bombardier is keen to continue working with all state governments

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B O M B A R D I E R T R A N S P O R TAT I O N A U S T R A L I A

and industry to look at long-term, sustainable pipelines of rail projects that incorporate increased capacity, digital connectivity, advanced manufacturing, automated signaling and maintenance systems.

On the rail control front, Bombardier recently reached an important milestone under its frame agreement with global resources company BHP to deliver the next generation control system for its rail network in Western Australia. In its first mine-to-port project, Bombardier will start the implementation of the highly-efficient INTERFLO 150 rail control solution to optimise the movement of iron ore from six mines to Port Hedland in the remote Pilbara region; which currently comprises 1,000km of track

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and 178 locomotives. Bombardier is working closely with BHP to deliver the technologically-advanced project, with operation planned in 2019.

“We’re always asking ourselves ‘what’s next?’ How can we diversify?

What does the industry, and our customers, need and how can we be part of the journey with them to exceed their expectations?” added Dudgeon.

In an industry that values strong partnership and value-add solutions, Bombardier puts the customer at the heart of everything they do. “That’s the only way to grow” insists Dudgeon.

Sustainability From mainline to metro, light rail to locomotives, Bombardier’s strategy is one of continuous development

T R A N S P O R TAT I O N

“WE HAVE THE ABILITY TO PROVIDE OUR CUSTOMERS WITH EFFICIENT SOLUTIONS AND KEEP THINGS ON

TRACK - EXCUSE THE PUN!” – Andrew Dudgeon, Managing Director for Bombardier Australia

that provides the most effective and cost-efficient rail solutions for rail vehicles; providing sustainable mobility throughout their lifecycle.

“We take the asset from cradle to grave – that means right from the concept to design, engineering, manufacturing, maintenance and asset management for 30-plus years,” he adds. “We maintain our own, and some other rail supplier fleets, at our

depots across Australia. It’s a major advantage when we’re maintaining the fleet because if something goes wrong, like a collision or fault in a train, we can bring it in and fix it right away.

The faster we do that, the quicker the trains are back out onto the network moving passengers. We couldn’t do that if we didn’t have a local presence and operations. We have the ability to provide our customer

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with efficient solutions and keep things on track – excuse the pun!”

Before entering civilian life, Dudgeon had an esteemed career in the military and comes from a long line of patriarchal officers. Dudgeon says the biggest skill he has transferred from the army to his career with Bombardier is open communication.

“The last thing my dad said to me as I got on the train to join the army was, ‘look after your men and women.

Without them, you have nothing.

Listen to them, care for them’ – and that’s followed me throughout my career: ‘listen to your people’.”

As such, Dudgeon stresses that the most important success factor of the Bombardier business in Australia is its employees. With skills and talent development initiatives such as the Apprentice & Graduate Program, Accredited Welder Training Centre and High Potential Development Program, the Bombardier team

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remain dedicated to fulfilling the organisations vision for more efficient, sustainable and innovative rail mobility ecosystem across Australia.

Operational and Manufacturing

Excellence is at the heart of Bombardier.

Some of Bombardier Australia’s most high profile projects have been produced from their 41-acre Dandenong manufacturing facility in South East Melbourne, which includes the Regional Victoria VLocity diesel trains, Melbourne FLEXITY E-Class trams, and the Adelaide A-City

T R A N S P O R TAT I O N

electric trains for South Australia.

As the rail and infrastructure requirements differ from state to state across Australia, it is important to understand and adapt unique and flexible rail solutions to ensure they are fit for purpose. Head of Operations and Site General Manager, David Collomb, explains some of the key differentiators

of Bombardier’s Dandenong manufacturing headquarters, and the two key approaches he takes to the manufacturing operation at Bombardier in Australia.

“Once you understand your customers’ requirements and expectations, it’s important to look at what your capabilities are and understand the true strengths of your workforce” explains Collomb.

“In Australia, we have a highly skilled workforce with a strong baseline in trades like –welders, boilermakers, electrical and mechanical technicians and fitters. This is a strength because we’re a one-stop solution provider. We have the right people and expertise, and the right partnerships, to provide best in class products and solutions.”

“The second point is to manage the entire value chain. This is the key to delivering operational excellence and allows you to define your business strategy and position yourself as a local, sustainable partner

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“WHAT YOU DON’T MEASURE

YOU CAN’T IMPROVE” – David Collomb, Head of Operations for Bombardier Australia

of choice to your customers.”

As the only train and tram manufacturer left in Australia, Bombardier understands that Australia places high value on local content, employment and opportunity. Boasting a local supply chain of over 1500 across Australia, Bombardier is committed to longterm partnerships and supporting local expertise across the industry.

When asked about the secret to continuously achieving excellence in the operational and manufacturing space, Collomb says it comes down to three key things: (1) measuring performance, “what you don’t measure, you can’t improve”; (2) understanding and developing your people’s competencies; and (3) having highly engaged people. “With our employees we look for excellence and engagement. Highly skilled employees who don’t care about your business doesn’t provide real value.”

Collomb, who previously held senior management positions in global aeronautics leader Airbus, explains that the two primary differences between Bombardier’s rail and

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T R A N S P O R TAT I O N

aerospace division is the turnaround time for projects – approximately five years for aerospace and two years for rail transportation, meaning the demands for rail execution are higher.

“This was the biggest adjustment for me when moving from Airbus to Bombardier; the pace of project execution. I’m enjoying the challenge.”

The second difference he notes is the customers. “In the aeronautic world, it’s generally a private environment with private investors, but in rail we’re accountable to the public sector, to Governments who have a duty to deliver to the taxpaying community. So it doesn’t just come down to being more efficient, but to demonstrating overall, and quantifiable, value to the community.”

Delivering high quality solutions that add value to the rail ecosystem in Australia is the heartbeat of

Bombardier’s operational excellence in Australia. Bombardier’s center of engineering and manufacturing excellence is headquartered in Melbourne, Victoria, with established maintenance facilities across Melbourne, Perth, Brisbane, Gold Coast and Adelaide servicing current projects and ready to expand into the next phase of the businesses growth strategy.

Life asset management excellence – a thriving services business It certainly doesn’t stop after the trains are built. Asset Management and Vehicle Lifecycle Maintenance is core business at Bombardier, accounting for 25 per cent of Bombardier’s total revenue stream in Australia. With longterm maintenance contracts of anywhere between 10-30+ years

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attached to almost every Bombardier rail project, Bombardier dominates the rail services market across Australia with current contracts in Victoria, Queensland, Perth and Adelaide.

Garry Bulgarelli, Head of Service Execution for Australia and Asia Pacific, says Bombardier’s long-term approach over the next 20 plus years is to grow the services business to represent 50 per cent turnover.

“To achieve this here in Australia we need to become a major player in New South Wales too,” he reveals.

“We’re ensuring every proposal we put forward to our customers has a comprehensive services platform – a complete proposal for maintenance, technical support and/

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or a spare parts agreement. These long-term commitments allow us to maintain strong connections with our customers. Like a marriage really!”

Bulgarelli stresses that it all comes back to the ‘cradle to grave’ ethos, “We want to be a partner across our customer’s project journey, not just another contractor.”

Bulgarelli claims incumbency is the biggest challenge, so it’s imperative

T R A N S P O R TAT I O N

to keep in touch, and anticipate where possible, your customer’s needs.

“It’s not good enough for us as a maintainer to have great key performance indicators, but unable to support our customer with their day to day operational or performance challenges. You don’t simply put your tools down when your part of the job is done, you check in with your customer and see if you can support them in other ways. That’s what a good partner does.”

To future-proof Bombardier’s products and services across incoming trends over the next 30+ years, Bulgarelli says digitisation is the main focus for all rail assets moving forward. “Big Data is the key to improving asset performance, reliability and aiding predictive

maintenance regimes.” Bulgarelli says it’s about how digital technology is used to extract, record and analyze data from the trains to monitor trends and vehicle performance during service. “From the data we can understand how things like the doors and cooling/ heating modules are behaving during service, then we can adjust them accordingly during maintenance if required. Things like this impact the passengers travel experience, so having this data is crucial and informs our maintenance program for each vehicle.”

When it comes to the name you can trust, the proof is in the pudding as Bombardier was the first to achieve ISO 55001 Asset Management accreditation of their rail maintenance operation in Adelaide,

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B O M B A R D I E R T R A N S P O R TAT I O N A U S T R A L I A

South Australia. This certification recognizes the robust processes and procedures Bombardier has in place to provide excellence in rail vehicle asset maintenance.

Comprising part of Bombardier’s asset management process is the Automatic Vehicle Inspection Technology (AVIS) system, where trains undergo a fully automatic inspection of key elements as they pass a fixed inspection point. Before the train reaches the depot, Bulgarelli’s team have a full diagnostic report in hand and can begin working on the vehicles immediately.

“For instance, the system may send us an alert saying the train is damaged, or the brake pads have

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worn to a certain level, so my team knows exactly what needs to be done and they can schedule the vehicle in for an examination.”

All this data is analysed and managed by Bombardier’s ORBITA system to provide alerts and optimize maintenance so that assets are not brought in for maintenance unnecessarily, which both reduces costs and maximizes availability to its customers.

Bombardier is also participating in a global digital start-up program called “ON:TRACK” with innovative tech companies and hubs to identify digital solutions across all elements of the transportation ecosystems, and is working with entrepreneurs to

T R A N S P O R TAT I O N

“BIG DATA

IS THE KEY

TO IMPROVING ASSET PERFORMANCE, RELIABILITY, AND AIDING PREDICTIVE MAINTENANCE REGIMES”

develop how they can be rolled out.

“We need to be able to provide solutions that give the end user, the passenger and the operator, valuable information,” he adds, “The passenger entering a station needs to know if the train is on time. Or the CCTV on the train might alert them that it’s crowded, so they’re better off waiting for the next one.

“This is something we’re working with our customers on and hope to be able to package into an integrated digital solution moving forward.

There’s a lot of data we can tap into to continuously improve the experience on our vehicles.”

– Garry Bulgarelli, Head of Service Execution, Asia Pacific & Australia

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ON TOP WOMEN

We speak to some of Bombardier’s female executives about their experiences and advice for fellow women seeking a career in the industry

BOMBARDIER

THE RAIL AND manufacturing sector often faces an uphill battle when it comes to diversity in the workplace. However Bombardier’s workforce has grown in recent years to boast a well-represented proportion of highly skilled, ambitious and determined women.

Some of the top spots in Bombardier’s Australian leadership team are now filled by the industry’s foremost innovative and intelligent women in the areas of finance, legal, communications, engineering and signalling, and the executive team are proud to say that this occurred organically.

“This is not something we all sat down one day and decided to achieve for the industry or our business to increase diversity,” says Head of Communications, Loulou Hammad.

“We hire on ‘best fit for the job’, and we are proud that many of those top spots have been filled by inspiring women who, despite tradition and perceptions of the industry, are taking a seat at the table and making a real difference.”

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WOMEN ON TOP

“THIS IS NOT SOMETHING WE ALL SAT DOWN ONE DAY AND DECIDED TO ACHIEVE” – Loulou Hammad, Head of Communications 51

Meet BOMBARDIER’S female leaders

ANNE KOOPMANN - Head of Quality and Lean Manufacturing, Australia The skills of Bombardier’s female leaders are also being celebrated across the entire manufacturing industry. Bombardier Australia’s Head of Quality and Lean Manufacturing, Anne Koopmann, was recognised for her exemplary work in rail manufacturing at the Victorian Manufacturing Hall of Fame Awards held in May 2017. Anne won the Young Manufacturer of the Year Award for her exceptional work in the fields of Quality Assurance and Continuous Improvement in planning and production.

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“I’m extremely honoured to have been selected as the 2017 Victorian Young Manufacturer of the Year. It’s a very humbling achievement for me and I thank the Victorian Government and the manufacturing industry for recognising my contribution.

Bombardier has given me the opportunity to grow personally and professionally. I am grateful to work with amazing people who continue to challenge and encourage me to think bigger and bolder, every day.”

WOMEN ON TOP

REXINE JONES – Head of Finance, Australia Rexine Jones has newly joined Bombardier as Head of Finance after an extensive career in some of the top global aerospace businesses including QANTAS and BOC/Linde Group. Rexine’s objective at BTA is to support and develop a company that can support the public through reliable transport options and for continued local employment.

Advice for women in leadership: “You have a right to be at the table because your opinion counts, however don’t lose track of your femininity. This way you can build your own signature as trusted, reasonable & humble because you are true to yourself.”

SANDRA COLLOMB – Head of Engineering, Australia Sandra is the Head of Engineering for Bombardier Transportation Australia, having joined Bombardier in 2014 with a distinguished career in the aerospace industry with Airbus. Her extensive experience coupled with sound business savviness and an incredible drive for results places Sandra at the helm of an incredibly high performance engineering team.

Advice: “Remain authentic – find your own leadership style, but be adaptive in different situations and in accordance with the maturity of your team.”

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BOMBARDIER

LOULOU HAMMAD – Head of Communications, Australia At 28, Loulou is the youngest person on the BTA leadership team.

Responsible for the Bombardier brand and supporting the strategic direction of the business, Loulou ensures the team continues to challenge the status quo, evolve itself and look beyond the needs of today.

KATIE SINGLETON – Head of Rail Control Solutions, Australia Katie has been with Bombardier Transportation for 15 years, starting in the BT graduate scheme and working her way up through to Project Management to her current role, where she is an integral part of the Australian leadership team as the Head of Rail Control Solutions.

Advice: “If you have a passion to be in a Leadership role, let it be known.

Talk to your boss, a mentor if you have one, and even your family/ friends support network, agree on a plan and make it happen.”

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June 2017

Advice: “Be bold. You won’t get anywhere sitting on the sidelines.”

WOMEN ON TOP

CLAIRE HEUGHAN – Senior Legal Counsel, Australia Claire has been working with the legal and contracts team at Bombardier for over three years, having had an extensive background in legal particularly in the infrastructure sector. Claire manages the contracts for Bombardier’s projects across the Asia Pacific region, from the tender stage through to operation.

Advice: “Don’t be afraid to back yourself and give it a try.”

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DACIAN –

SPEARHEADING AUSTRALIA’S GOLD MINING RESURGENCE Dacian Gold is months away from becoming the next midtier gold producer, and its properties on the established Mt Morgans field could easily take it to world class Written by John O’Hanlon Produced by Josef Smith

DACIAN GOLD

M

ount Morgans near Laverton in Western Australia has been a renowned centre for gold production since ore was first discovered there in 1896. Named after Alfred Edward Morgans, a Welsh investor who first developed the productive open pit Westralia mine, it had produced a million ounces of gold by 2011, by which time it was pretty much mined out, and in April that year the company that owned it threw in the

towel. By happy coincidence it was in the same year that Avoca Resources merged with Anatolia to form Alacer Gold, which now focuses its attention on the goldfields of Turkey. Avoca was a successful enterprise that started as a junior exploration company and grew via an IPO to become a leading gold producer on the ASX.

Following the merger and an 11-year journey Avoca’s CEO Rohan Williams says he felt ready for some time out, but that was

Rohan Williams Executive Chairman

Mr Williams is the founding director of Dacian Gold Ltd overseeing the $8M acquisition of the Mt Morgans Gold Project prior to the Company’s $20M exploration IPO in late 2012. He initially served as the Company’s Non-Executive Chairman, but became its Executive Chairman in early 2014. Since this time the Company has grown to a $400M market capitalisation and is presently focussed on the construction of the 200Kozpa Mt Morgans Gold Project ahead of initial gold production in March 2018.

Prior to Dacian Gold, Mr Williams was the founding CEO and Managing Director of Avoca Resources Ltd, and led that company from its $7 million exploration IPO in 2002 until its merger with Anatolia Minerals in 2011 to form Alacer Gold Corp, which valued Avoca at $1 billion. At the time of the merger, Avoca Resources Ltd was the third largest ASX listed Australian gold producer.

Mr Williams also serves on the Board of the Telethon Kids Institute.

MINING

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not to be – Mount Morgans came to his notice and enticed him to pursue a growing conviction that the project had potential. He raised $10 million (Australian) privately to buy the project outright from its administrators in January 2012. In November of the same year Dacian Gold listed on the ASX following an IPO that raised $20 million. “With that behind us we had three years to do a thorough exploration: if our theory was right we hoped to be able to build a mine,” says Williams.

The success of Avoca, and the fact that much of the same team was involved at Dacian, helped sway the investors, he admits, and since the IPO the project has proceeded very much as well as he and his backers could possibly hope. In just two locations, below the old Westralia open pit and at a surface deposit just 10 miles away named Jupiter, the drill-out confirmed an ore base of 1.2 million ounces of gold at an average recovery cost of around A$1,000 per ounce. With Australian gold prices currently firming at close to $1,700 per ounce the mine,

which has been confirmed to have at least an eight-year lifespan, will break even well within two years.

In the event Williams is very much more optimistic, and is holding himself in check when he claims to being well on the way to becoming a 200,000-ounce per year gold producer over a 10-year period, making Dacian Gold a significant new mid-tier Australian gold producer. “We did a feasibility study and that showed it was going to be an economic proposition and then it

WITH OUR $20 MILLION IPO BEHIND US WE HAD THREE YEARS TO DO A THOROUGH EXPLORATION: IF OUR THEORY WAS RIGHT WE HOPED TO BE ABLE TO BUILD A MINE w w w. d a c i a n g o l d . c o m . a u

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MINING

was a matter of raising finance and construction and in March next year we will have our first gold bars.�

Striking gold

This first gold will come from the brand new 2.5 million tonne per annum carbon-in-leach (CIL) processing plant being built under an EPC contract by GR Engineering, which will also be responsible for building supporting infrastructure including a tailings storage facility; raw water supply infrastructure; workshops, offices and infrastructure to support the Jupiter open pit; an administration complex; and a new haul road.

The processing plant is located

close to the Jupiter pit, where, later this year, run-of-mine ore will be trucked from the new underground mining complex being built by RUC Mining. The underground mining contract includes development of a new portal for Beresford, rehabilitation of the historic underground portal and Allanson decline; and level development, ore driving, and stope production.

These are partners that Williams and his team know well, having worked with them at Avoca. Two separate mines are to be built to extract ore from the two main deposits at Westralia – Beresford and Allanson – with construction at the Beresford mine started in

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mid-May. “Our plan is to place around half a million tonnes of ore on the ROM pad so that when the processing plant is turned on in March 2018 it can go straight into full production. He adds that the processing plant will have a design life of at least 20 years, reflecting his confidence on the as yet unconfirmed future potential of the 520 square kilometre Mt Morgans project.

Rohan Williams is a man who likes to back his gut instincts as a geologist with firm evidence. When he first looked at the site, the paucity of diamond drill cores at site once shocked him and gladdened his heart. “It was a great indicator to me

of how under-explored this project was. Westralia is a field that had produced over a million ounces of gold yet there was almost no diamond drilling completed at depth – without that the geologists could not really understand what controls the ore bodies.” Already Dacian has increased 20-fold the amount of hard evidence in terms of drill cores, he continues: “Exploration is one of the things we do well. We put effort, dollars and geological science into understanding the mineralisation as well as humanly possible. Diamond drilling is the only way to do that.”

With that in mind the company raised an additional $20 million in its last raising for its continuing

WESTRALIA IS A FIELD THAT HAD PRODUCED

OVER A MILLION OUNCES OF GOLD YET THERE WAS ALMOST NO DIAMOND DRILLING

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DACIAN GOLD

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exploration programme, he says.

Many companies with a clear path to profitable production might be tempted to focus exclusively on construction, but not Dacian, which wants to still be bringing in new resources 20 years from now.

near-surface gold. Once all these results have been interpreted he intends to bring in the diamond drilling and reverse circulation (RC) rigs to confirm what he believes may well become a third major resource for the company.

You only have to look at the area Expansion? that embraces Mt Morgans to feel It’s already been established that the buzz. Just outside lies the world Westralia is a large mineralised class Wallaby gold mine and within system extending over three a 25 kilometre radius there are many kilometres, and that the Jupiter other names to conjure with such deposit is also a big open pit at as the Sunrise Dam and Granny nearly two kilometres long. With Smith gold mines. “I can’t think of all systems go on developing another gold system in Australia these areas Williams is intent where there are that many twoon investigating a third potential million plus gold deposits. We are system on the property known as definitely in elephant country and Cameron Well, just nine kilometres it excites us.” That combination from the treatment plant. A 750-hole of enthusiasm, experience and reconnaissance drilling programme scientific rigour is what makes has just been completed using a Dacian a leading light in the combination of air-core and RAB resurgence of Australia’s gold mining (rotary air blast) drilling, showing industry after a period of recession. up encouraging quantities of

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Profit is KING,

TURNOVER is secondary Written by Niki Waldegrave Produced by Jeff Debicki

EPTEC GROUP

EPTEC Group celebrates its 20th birthday this year.

CEO Joe Viglione tells Niki Waldegrave how its work was instrumental to the preservation of the Royal Australian Navy fleet and the company’s vision for the next two decades

P

reservation and rehabilitation engineering contractor EPTEC Group turns 20 in September – and if you’re not familiar with it, you’ll certainly know some of its biggest projects.

From the new build of the ANZAC Frigates to maintenance for the Royal Australian Navy (RAN), Flinders Street Station, the Burnley & Domain Tunnels, and US air craft carrier, USS Abraham Lincoln, EPTEC has worked on them all.

Its specialist expertise spans services such as corrosion protection, lining and waterproofing, concrete rehabilitation, abrasive blasting, hydro-blasting, painting, building façade refurbishment, fibre reinforced plastics and thermal insulation. EPTEC also has a long history for serving the defence, water and wastewater, energy

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and resources, infrastructure and mining industries.

Joe Viglione, CEO, says: “We’ve done work on nearly every surface ship in the RAN. The Anzac Frigate was our biggest project and the founding one. It laid the foundations for the company from March 1998 until May 2006.

“It was undertaken at Williamstown in Victoria and we had up to 300 employees involved, some of whom are still with us, like our production manager Bruno Dumont, our project manager Chris Foster, and our supervisor Mark Sanders. They were instrumental in delivering that project.”

The next two milestones were Project Protector for the Royal New Zealand Navy from 2006 – 2010, and the upgrade of Flinders Street Station in Melbourne before the 2006 Commonwealth Games.

CONSTRUCTION

Project Protector was run by Gwydion Sherwood, who ran the operation in New Zealand and is still with the company today.

“That involved a lot of our areas of skill,” Viglione adds, “like blasting, painting, concrete repair, carbon fibre strengthening, grouting and chemical injection.

It involved almost everything we do in our suite of services.”

Most of EPTEC’s supervisors have at least 10 years’ service, and Viglione pays credit to the handful of founding employees, explaining: “They’re the old stalwarts that rocked up and worked out of the back of their

HMAS Perth before launch

“Hang around, contribute to the industry, in small to medium-sized organisations you can really fly if you’re prepared to make the effort”

EPTEC GROUP

utes. We hired, begged, borrowed war in Iraq, being the ship used everything at the start and to launch the first attack.” they’ve helped grow EPTEC from With a civil engineering nothing to what we are today.” background in major infrastructure He claims one of the company’s projects such as Port Kembla proudest achievements was Grain Terminal, Mt. Piper Power working on US aircraft carrier the Station and Sydney Harbour USS Abraham Lincoln, and recalls Tunnel, the then CEO of Transfield how he received the Construction, Claudio Di phone call for the Berardino, introduced project at home Viglione to Piccioli in on Boxing Day. 1992. Piccioli at the “I negotiated time was the General the contract Manager of Transfield over the next Corrosion Protection.

24-48 hours Viglione remembers Number of employees reluctantly accepting whilst travelling at EPTEC Group with my wife the role with Piccioli but and two children to “within two years of being my in-laws,” he laughs. in corrosion protection, I was “I mobilised on site in Perth on running the painting division,” January 5 and between myself he says. “From understanding and operations superintendent nothing, the small organisation Michael Ippoliti, we worked around gave me the opportunity to be the clock to deliver that vessel in valued for my contributions.”

12 days with a crew of 70 guys.

When EPTEC was founded “We were 10 nautical miles off in September 1997 by Enrico the coast of Fremantle and did Piccioli, with the support of it at sea. It was involved in the Claudio Di Berardino, together

200-300

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June 2017

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“In the last three years we’ve increased the business turnover by 50 percent, whilst at the same time maintaining profitability”

Eptec at the completion of the HMAS Melbourne (FFG 05) maintenance

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“We rely very heavily on repeat business, and repeat business is built on relationships” 74

June 2017

they convinced Viglione and a few other very valuable supervisors to join the new Company.

The effervescent Piccioli – Italy’s youngest engineer when he graduated at 21 – focused on the business development and administration while Viglione headed-up the projects.

Piccioli was EPTEC’s director and CEO up until his passing in May 2014, at which point his friend of 25 years and business partner, Claudio Di Berardino, became Managing Director, and Viglione was promoted from Chief Operating Officer to CEO. “Two of the people I’ve learned the most from in my life are Enrico and Claudio,” Viglione says. “Enrico was my work mentor for 22 years.

He was a fabulous entrepreneur, salesman, and loved to travel.

“He looked a bit like King Henry VIII in his younger days with a red beard. He was a brilliant storyteller, highly intelligent, very well-spoken and wrote and dictated prolifically.”

Viglione has known Di Berardino

SECTOR

Joe Viglione CEO

Mark Benham CFO

Claudio Di Berardino Managing Director

for more than 40 years after advisor at school and saying to meeting him at the age of about them, ‘I want to be an engineer eight-years-old when his father and project director like Claudio’. worked for him on the “In his young days, he was power stations on smooth as silk but tough the New South as nails. He could be Wales Central fierce in a meeting Coast. but once you walked “For years, I out of the room it aspired to be was all OK. Now, he’s like Claudio,” like the statesman of Annual revenue at adds Viglione. the organisation and EPTEC Group “He was like a god, is well-respected in the and his reputation construction industry.” preceded him. I vividly Viglione insists Di Berardino, remember going to my careers who is retiring later this year

$50

Million

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EPTEC GROUP

Works on the Taiwan High Speed Rail Link

Sino Iron project site 76

June 2016

David Inger HSEQ Manager

Lawrence Rob HR-ER-IR Manager

at the grand old age of 18 – a leap year baby – has taken the private business to the next level with his growth strategies.

“As a private Company for us, profit is king, turnover is secondary,” claims Viglione.

“The current EPTEC team has built upon the successes of the founding members, and in the last three years the business turnover has increased by 50 percent, whilst at the same time maintaining profitability.

“My vision for the next 10 years is to continue to aggressively

Chris Zervos

Pre-Contracts Manager

grow the company, albeit at a more sustainable rate than the last couple of years, maintain profitability, and most importantly, ensure the health and safety of our employees not only from a physical side, but also from a psychological space.”

He claims the most exciting projects for the next 18 months are in the Australian Naval new-build sector. Currently, the Australian Government boasts one of the largest expenditure forecasts for new-build vessels of any nation.

“Projects like the 12 offshore

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EPTEC GROUP

Weekly HSEQ meeting patrol boats, 9 future Frigates and the replacement submarines make it an exciting time,” Viglione adds.

“Now we’ve started on the submarines. We’re currently doing refurbishments which in the early 1990s, Superintendent Michael Ippoliti and I were involved in the new build stage painting.

“Whenever we win a project, I go from the thrill of the chase to immediately moving into execution and delivery mode, saying, ‘My God! What have I got myself into?’

“Being a company of our size, one needs to be humble in working

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with our clients, because we rely very heavily on repeat business, which is built on relationships.

“They’re the things that really help you get up in the morning and give you the passion for something you want to do.”

Dr Enrico Piccioli’s 3rd Anniversary Memorial

Tackling the mounting e-waste problem The Australian Information Industry Association (AIIA) is Australia’s peak representative body and advocacy group for those in the digital ecosystem. Through its Environment Special Interest Group (ESIG), AIIA member companies are actively engaged in reducing the industry’s environmental impacts on society.

Written by Rob Fitzpatrick, CEO, AIIA

A U S T R A L I A N I N F O R M AT I O N I N D U S T R Y A S S O C I AT I O N ( A I I A )

A

ustralians are among the biggest users of technology in the world, buying millions of items a year. We love our gadgets and regularly update our devices, but the flip side of all this consumption is that electronic waste is one of the fastest growing types of waste.

As more and more outdated electronic equipment - like computers, photocopiers, printers, faxes, monitors, batteries and mobile phones - ends up in landfill, the negative impacts of e-waste on the environment and society will increase.

These electronics can contain small amounts of hazardous pollutants such as lead, arsenic and mercury. Through recycling, we can help prevent these pollutants from ending up in landfill and recover some of the valuable materials in various components.

However, this process can be expensive and has led to unscrupulous operators in many countries, including Australia, to illegally ship e-waste to less developed economies where dangerous and environmentally harmful recycling methods persist. When the ABC

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reported that computer monitors from an Australian bank, destined for recycling in Australia, were found on a toxic e-waste dump in west Africa, it highlighted failures in current e-waste disposal supply chains.

So how do we go about solving the mounting global problem of e-waste?

Local solutions The solution to the global e-waste problem starts at home – think globally and act locally. The AIIA’s Environment Special Interest Group (ESIG) has already made a significant impact on Australia’s environmental landscape by being strong advocates for better regulation on the dangerous impacts of e-waste for which our industry is responsible.

The National Television and Computer Recycling Scheme (NTCRS) provides a good example of the kind of collaboration with governments, green groups, industry and recyclers necessary to drive responsible programs. It was established in 2011 to provide Australian households and small business with access to industry-funded

CONSTRUCTION

The solution to the global e-waste problem starts at home

- think globally and act locally – Rob Fitzpatrick, CEO, AIIA

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A U S T R A L I A N I N F O R M AT I O N I N D U S T R Y A S S O C I AT I O N ( A I I A )

collection and recycling services for televisions and computers.

A legislative review of the NTCRS is due to commence this year. The AIIA’s ESIG is arguing for expansion of the scheme to include everything with a plug and battery. This will enable economies of scale for industry and increase the amount of recycling at no extra cost to consumers.

To date, more than 1,800 collection services have been made available to the public and more than 130,000 tonnes of TV and computer e-waste has been collected and recycled. This

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has diverted hazardous materials away from landfill and enabled the reuse of valuable resources. Under the scheme, brands have agreed to recycle 80 per cent of waste by 2020. It’s a shared responsibility approach between industry and government – with industry ultimately taking on the lion’s share of the responsibility and cost.

Cartridges 4 Planet Ark Program AIIA member Canon has a long history of involvement in recycling

CONSTRUCTION

Member Insight Series: Denver Maddux, CEO, Megaport

schemes and started the world’s first global printer toner recycling program over 25 years ago. In recognition of its outstanding environmental achievement and leadership, Canon received the NSW Sustainability Advantage Gold Partner Award in April.

The ‘Cartridges 4 Planet Ark’ program provides Australians with a free, convenient and environmentallyaccredited way to recycle their used printer cartridges. The voluntary program, which began in 2002, is a collaboration between industry

manufacturers that promote and pay for the program, Planet Ark (an Australian not-for-profit environmental foundation), Close the Loop (recycler and program manager), and retail partners (who provide collection points for consumers).

Participating manufacturers include Canon, Brother, Epson, HP, Konica Minolta and Kyocera.

The unique aspect of the program is that businesses can place collection boxes in their offices and cartridges are then returned for remanufacturing and recycling.

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A U S T R A L I A N I N F O R M AT I O N I N D U S T R Y A S S O C I AT I O N ( A I I A )

There are cartridge collection bins in over 2500 businesses throughout Australia, as well as in retailers such as Officeworks and Australia Post. The program comes with a zero waste to landfill guarantee and this is verified every year by an independent auditor.

Where possible, materials are recycled into pure commodity streams such as metals and plastics. However, because the recycled materials contain a mix of plastics, Close the Loop has also invested heavily in developing products that can be made

Recyclers should be

incentivised to provide

tracking of e-waste as a normal business offering – Rob Fitzpatrick, CEO, AIIA

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from these mixed waste streams. Two of the most successful products are eWood®, a functional and sustainable material which can be used to replace timber, and TonerPave®, a high-performance asphalt.

2016-17 has been the best year for the Cartridges 4 Planet Ark program yet. Approximately 13,500 cartridges have been returned every working day for the past 12 months. Also, nearly 8 million Canon cartridges alone have been recycled through the program since it started in 2003.

Global solutions Recycling is one approach to reducing e-waste. However, roughly 80 per cent of the carbon dioxide emitted by the ICT industry is emitted in the manufacturing process, so reuse of products is by far the best

outcome in terms of environmental sustainability. The industry supports the export model where products and parts are broken down in Australia, and then components are sold overseas into international commodity markets to be reused.

The reuse market is growing in developing countries but the export of e-waste must be effectively tracked and policed to prevent illegal dumping.

The Australian Government is actively involved in deterring this activity and there’s some good work being done already through the Basel Convention on movement of hazardous waste, but more needs to be done.

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CONSTRUCTION

Recyclers should be incentivised to provide tracking of e-waste as a normal business offering. This step, along with ongoing regular scrutiny from external auditors will help reduce illegal dumping.

Next steps forward The local ICT Industry has led the development of product stewardship in Australia and plays an active role through the industry-for-industry co-regulatory arrangement known as the Australia New Zealand Recycling Platform (ANZRP).

Formed by members of the AIIA’s ESIG and CESA (Consumer Electronics Society of Australia), ANZRP collects and recycles end of life TVs and computers from consumers and small businesses around Australia for free. Not resting on their laurels, ESIG and ANZRP

are both advocating for a broader range of electronic products to be included under the NTCRS as part of its recommendations for the current regulatory review.

Sustainable ICT initiatives in Australia should be recognised by the wider community and grown throughout the global economy as they offer workable models that can be emulated by businesses worldwide.

To encourage more innovation the AIIA’s iAwards recognises outstanding contributions to environmental sustainability as part of the Community service award category.

We will continue to work with our members to identify and resource key programs which can reduce e-waste and carbon emissions. This will have an impact locally in Australia, as well as make a significant contribution to solving the e-waste problem globally.

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KRISPY KREME AUSTR ALIA:

THE TASTE OF SUCCESS Written by Dale Benton

KRISPY KREME AUSTRALIA

Through a major strategic refocus, a digital transformation and the continued support from its parent company, Krispy Kreme Australia continues to prove it has the taste for success.

A

s one of the world’s largest food franchises, with hugely successful operations across the world, Krispy Kreme’s decision to move into Australia was something of a no brainer.

In 2003, the American global doughnut company launched into Australia and soon established a national footprint, becoming the first country outside of the US to make the iconic Original Glazed Doughnuts.

At its peak, Krispy Kreme had more than 50 stores throughout Australia but in 2010, the company entered voluntary administration and a major restructure was on the menu.

“Krispy Kreme has excellent brand recognition and good turnover and profitability in its better stores,” director John McGuigan said in a statement.

“However, several factors, including location, sales declines,

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high rents and high distribution costs, have meant that a number of stores are losing money.”

Voluntary administration didn’t last too long however. Despite an initial closure of more than 25 stores, ranging from New South Wales to Victoria and Queensland, in December 2010 after just two months Krispy Kreme emerged from administration.

Smarter

This new look Krispy Kreme emerged as a smarter, leaner business, ready to learn from its previous troubles including slumping sales, high rents and high distribution costs. Krispy Kreme was back, with 35 of its 59 stores across Australia remaining open.

“The remaining retail outlets all have strong sales and customer support, and the company can now continue trading without underperforming

TECHNOLOGY

stores adversely affecting the business,” said McGuigan.

Just one year later, after a stable year that brought Krispy Kreme back on sure footing, the company announced a perfect match with the news that it had partnered with the Australian arm of the major international chain of convenience stores 7-Eleven.

The coming together saw 7-Eleven agree to sell Krispy Kreme doughnuts in each of its 600 stores across Australia. This represented a major milestone for the company, an opportunity for a huge increase in sales and customer traffic.

“We are thrilled that our

partnership with 7-Eleven, an outstanding Australian retailer, will mean that Krispy Kreme fans will be able to buy our product from 600 additional locations,” said McGuigan.

“The combination of the Krispy Kreme iconic brand with Australia’s leading convenience chain is an exciting opportunity for both 7-Eleven and Krispy Kreme Australia,” he said.

Global footprint

Krispy Kreme Australia represents one of the many franchises around the world, with more than 70 percent of Krispy Kreme stores

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Pinnacle a Trusted Partner

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being located outside of the United States, cementing its place as a truly international brand.

As the company’s footprint continues to expand and grow, what level of strategic management is in place to ensure it remains as a market leader?

“Our focus remains on becoming an industry leader through the use of innovative new product platforms to extend our offering and make our products relevant over time to an ever-changing

population,” says the company.

“We believe that our success is driven through a partnership with our franchise partners around the world. The combination of strong global and regional marketing support, along with local adaptation and execution, will continue to grow our iconic brand worldwide,” Innovation

Krispy Kreme Australia owes its current stable state not only to the restructuring of processes internally, but also to the support and strategic partnership the franchisee consistently receives from its parent company.

That drive for innovation and new product platforms is exemplified through its online presence and its delivery service. In the world of e-commerce, ordering food online is nothing new, but Krispy Kreme has been investing heavily in its digital presence, customer loyalty and ecommerce capabilities.

In an interview with CMO, Russel Schulman, head of digital and ecommerce, goes as far as saying that Australia is leading the way

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TECHNOLOGY

with regards to digital innovation and ecommerce initiatives.

Krispy Kreme partnered with Temando, the global multi-carrier shipping platform for commerce.

Through the partnership, Krispy Kreme transformed its order processing capabilities from a traditional manual order processing system to streamlined method.

Temando enables the company to have much more intelligent order routing, an increased visibility across its order process, reduce the overall headcount needed to process orders and reduce the costs associated in delivery.

According to a case study with

Temando and Krispy Kreme, at any given time depending on the volume of orders, manual work could consume between 2-4 staff members entire days each week.

After just one month of working with Temando, Krispy Kreme had overseen a major increase, close to 300 percent, in transactions and a total of 7,152 extra doughnuts sold.

The major overhauling of its processes doesn’t stop there. In November 2015, Krispy Kreme partnered with Magento and Digital Arts Network Sydney, an online platform, to power its online distribution system via a new and improved web presence.

This innovative new website provides the opportunity for customers, either in a web browser of via tablet device, create their very own doughnut through dragging and dropping various flavours and alternatives. These custom doughnuts, which can be “shaken up� by physically

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KRISPY KREME AUSTRALIA

shaking a mobile device, are stored and processed into real doughnuts ready for delivery.

“Krispy Kreme has seen massive improvements in engagement across the site with dwell time up 360 percent and repeat visitation jumping up by 252 percent,” says Schulman in a case study.

The new site also allows customers to have donuts delivered or arrange to collect the donuts in real time from any of Krispy Kreme’s stores across Australia, including

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its partner outlets 7-eleven.

The significance of ecommerce in the continuing success of the company cannot be ignored. When the company entered voluntary administration partly through having too many stores, this in turn reduced the quality of the product, made the operating costs difficult to manage and turned Krispy Kreme products into “too much of a commodity.”

Ecommerce continues to represent the best opportunity for Krispy Kreme to reach all of its

TECHNOLOGY

customers and deliver the same level of service and cost effectiveness, all without sacrificing the overall quality.

Empowering employees

For any company, success simply cannot be achieved without the right people driving the company forward. This is not an area that Krispy Kreme has taken for granted, investing heavily in its talent assessment and acquisition.

Krispy Kreme Australia, as a direct result of its size and scope, receives applications in the 100s which proves difficult (and costly) to try and pin down the right candidates.

This, almost inevitably, has led to mistakes and in 2013 the company has a 42 percent staff turnover.

Fast forward to the end of 2016 and significant investment in its staff acquisition and development, and Krispy Kreme has reduced staff turnover 37 percent.

The company offers a thorough development process to ensure that employees not only represent the best of the best for the company to its customers, but also

a major boost for their personal development. This includes training in business strategy, hospitality, maintenance, production planning and execution alongside training in food preparation and handling.

To the future

It has been something of a roller coaster for Krispy Kreme Australia over the last decade, but the future is looking bright for the company. Only recently has the company announced that Krispy Kreme Australia is expanding into New Zealand in an $8million development, set to be constructed in South Auckland.

With an open date set for March 2018 Krispy Kreme Australia is fast proving that it still has the taste for success.

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he Level Crossing Removal Authority was established in May 2015 when the government pledged $2.4 billion from the 2015-2016 budget to remove 50 dangerous and congested level crossings across Melbourne by 2022.

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Project Director Brett Summers, a civil engineer, is heading up the $1.6 billion Caulfield to Dandenong Level Crossing Project to remove nine

Brett Summers project director for the Level Crossing Removal Authority

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of these level crossings, creating more capacity for trains to access the city, which is renowned for its ‘four seasons in one day’ weather. With six kilometres of elevated track involved, this is the first elevated rail project of this scale in Australia.

He says: “Being in Victoria we have our own unique challenges with the operational environment.

We’ve certainly looked to other projects around the world, to

take lessons from them and adopt them where we can.”

What’s particularly interesting is the massive potential for innovation and design presented by the project’s use of an elevated rail option. Raising up three sections of the rail line will open up a linear corridor for the public to use, replacing what would be typically functional, uninspiring transport infrastructure with playgrounds, parks, cycle and pedestrian paths.

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“One of the reasons we were really intrigued by this solution is that of all the areas in Melbourne, this has some of the least amount of green open space,” says Summers.

“That kind of set off a light bulb moment for us where we thought, ‘let’s take a nontraditional approach and consider elevating the structure’.

Basically, everything we elevate, we open up that space underneath.

“Historically, when level crossings have been removed in Victoria, the train line is dropped into a ditch and that’s it. But on

this particular job we’ve flipped that whole concept on its head.”

In the end, there were several compelling factors that led to the choice of ‘rail over’ for the project, which is tackling all nine crossings as a package. Putting the rail line down into a trench would require three times the amount of rail closures and a dramatic increase in the number of trucks – particularly excavators - on the road.

The innovative plans mean the area opens up to 225,000 square metres – that’s a whopping 11

“It’s actually about leaving a legacy behind that improves everybody’s lives”

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Melbourne Cricket Grounds’ worth of green open space.

Local involvement But the proposed development of the nine-metre-high elevated rail hasn’t been without controversy.

In December 2016, protest group Lower Our Tracks lost a Supreme Court bid to stop the project, claiming the Government failed to properly consult the public and kept the plans secret to avoid a political outcry.

Residents opposing it claimed it would lower property values due to being ugly and noisy, but Summers says opinions are slowly changing.

“Obviously, the biggest challenge we’ve faced on this job is changing that perception and history that’s come before us,” he says. “Early on, that was a challenge, but over the last 12 to 18 months we have seen the pendulum swing from the broader community that can see the benefits.”

Summers stresses the importance of the community having an active role in the future

of the new open space, and has formed an independent expert panel to make sure the right mix of local knowledge and technical expertise feed in to the design.

Chaired by the head of the Royal Botanic Gardens, Professor Tim Entwisle, the Community Open Space Expert Panel also includes members of local communities, councils, and organisations such as Bicycle Victoria, Victoria Police and the Office of the Victorian Government Architect. They will present their recommendations to LXRA later in 2017.

“A lot of it came back to wanting to leave a legacy behind,” he explains. “This isn’t just about removing level crossings in a transport project. It’s actually about leaving a legacy that improves everybody’s lives there.

A dedicated $15 million maintenance fund will be established to make sure the space is well-cared-for long after the project has wrapped up. But getting the community on board early on is just as

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important, says Brett.

“If we want it to be nice and green – not graffitied or run down within five years, then we have to build something they’re passionate about. Because if we build something the community doesn’t want or embrace, they’re less likely to use it.”

Summers says the Panel has spent the last 10 months brainstorming ideas, which they’re now testing with the broader public via an online portal. The community have also

been given ‘carte blanche’ to submit ideas, which have so far ranged from bike repair stations to activity hubs and markets.

“One idea is an open outdoor

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art gallery,” he reveals. “Taking the structural columns that actually hold up the elevated bridge and putting local community and artist artwork on there - you can wander between the columns and it becomes an open air, outdoor art gallery. So far the response has been overwhelmingly positive.

People see it as a real key to those local precincts and it’s trying to change the mindset from it just being a transport corridor to get from point A to point B. “This flips that concept on its head and tries to turn

AU $1.6 BILLION Levels Crossing Removal Authority Annual Revenue some of these precincts into a destination. We see it as a catalyst for broader improvement around those local precincts.

It’s no longer about catching a train to go through an area, it’s actually trying to encourage the community to visit, to shop and

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just being a transport corridor to get from point A to point B.

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spend money in that area.”

Sustainable He says raising the rail line rather than lowering it has benefits from an environmental sustainability point of view, including not needing to move infrastructure, like gas or water mains, or dig up contaminated material that’s been in the rail corridor for a long time.

“All we do is once we actually elevate the train line,” he says, “is strip the surface off, so get rid of any of the nasty stuff, and then reinstate a beautiful linear park. And we can actually improve the natural environment.

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using it to irrigate the linear park.”

It’s a game of many parts involving stakeholders from councils, Vic Track – who own the land asset – and Metro Trains, who run it. Summers believed it will be the local councils who are ultimately responsible for maintaining each element, “because it’s their constituents that will actually be using it”.

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A FRESH PERSPECTIVE. An initial payment of $15 million, funded through the Level Crossing Removal Project, will be set aside exclusively for maintenance.

“It’s been hard,” he admits.

“Trying to find that balance between green open space, plus car parking and playgrounds to support the rail environment and get the right mix. But another opportunity that comes with this linear park is we can actually replant trees. If you put a ditch in the ground, there’s no opportunity

to really landscape. But we can replant thousands of plants that can grow to a mature height because the train line is now up in the air, which creates an ecological corridor for flora and fauna.

“One of the key concerns from residents is there might be a community of birds or wildlife that live in an adjacent park. But by elevating the train line and reinstating a linear park, we’ll actually draw more wildlife to the area.”

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THE PATH OF

RESILIENCE The seventh annual Uptime Institute Data Center Industry Survey shows that businesses are as wedded as ever to their data centers, cloud or no cloud Written by John O’Hanlon

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he cost of not having a robust plan for managing your company’s data properly can be very high – a major outage at a data center is an existential threat to any business that has relies on it to store and manage its operational and transactional processes.

Even if recovery is possible, the consequences can set the business back severely through loss of productivity and the consequent dip in revenue. Down the line, customer relations may sour as a result of system unreliability.

The list goes on and any senior executive should be concerned about it – after all, top jobs may be on the line as the dominoes fall.

If they want to sleep better at night they should be moving towards IT-based resiliency, says Matt Stansberry, Uptime Institute’s Senior Director of Content & Publications. Uptime Institute is best known for its Tier Certification, accepted as the design, build and operational standard for data centers round the globe.

Furthermore one of its key roles is to

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help business assess and improve their strategies in respect of data management. Any colossus of the digital world, Google or Amazon, for example, could lose an entire data center and nobody would notice because the affected traffic would be re-routed elsewhere in the world.

This is the paradigm of multi-site application resiliency, and the world of enterprise is moving towards it though it may take some time before that tanker turns to its new heading.

This year’s Data Center Industry Survey, drawn from the perspectives of more than 1,000 international data center professionals and IT practitioners, reveals that IT resilience is growing and that 68 percent of businesses rely on it. The extent varies from sector to sector – for example 85 percent of logistics companies have a multi-site resiliency strategy that incorporates multiple data centers and relies on live IT application failover. Surprisingly, retail can only muster 58 percent and is one of the sectors with the lowest adoption rate. What really surprises Matt

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Stansberry though is that only a third of companies say that they will meet the demand for increased data center capacity by shifting workloads to the cloud. “Many people don’t seem to be willing to throw out their legacy systems but are still investing in diesel generators and backup power.”

One statistic thrown up by the survey has changed very little over the last four years. 65 percent of organizations deploy their IT assets in an enterpriseowned data center; 22 percent use a colocation or multi-tenant data center provider and only 13 percent have moved their assets to the cloud. “It

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Matt Stansberry is the Uptime Institute Senior Director of Content & Publications and Program Director for Uptime Institute Symposium. He has researched the convergence of technology, facility management, and energy issues in the data center since 2003. Mr. Stansberry operates the Uptime Institute social media outlets (Blog, Twitter, and YouTube channel), conducts the annual data center survey, and develops the agenda for Uptime Institute industry events including Symposium and Charrette.

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“Many people don’t seem to be willing to throw out their legacy systems but are still investing in diesel generators and backup power” – MATT STANSBERRY, Senior Director of Content & Publications

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is moving slower than I’d have thought,” he says. “It is probably because it’s not easy to re-architect their legacy applications for a cloud environment.” Digital transformation is a seismic and traumatic operation for a large organization, and it can be costly too, but it does clear the way to future growth.

So don’t expect an exodus of enterprise data centers’ workloads to co-location or the cloud.

Inertia is an enemy to change.

Stansberry predicts that investment in traditional data centers will continue for some years to come. Though Uptime Institute still earns its bread by monitoring the design, build, commissioning and operation of data centers, it has a big role in promoting effective management policies to its clients and across its network. More than 70 percent of respondents to the 2017 survey admit that their organizational processes for evaluating colocation and cloud providers left room for improvement and at worst were incoherent. “Managers may

VIDEO: Uptime

Institute’s 2017 Data Center Industry Survey Results

not have the breadth of vision to make effective decisions. We are really going to work on helping people look across silos.”

The survey does show that there’s a much more realistic awareness of the business critical nature of data to a business and the consequences of outages.

However, though 90 percent of organizations say they conduct root cause analysis of any IT outage, only 60 percent report that they measure the cost of downtime as a business metric. There still seems to be something of a gap between perception and action.

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THE POWER BEHIND AUSTRALIA’S LIGHTING REVOLUTION ADM EXHIBITING AT SPARC-FMA 30 May – 1 June 2017 Sydney International Convention Centre The event will feature an exhibition showcasing the latest in lighting and facility management innovation from Australia and globally.

ADM will have the latest MEAN WELL LED drivers on display at our stand, including the new ELG Series.

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