D e c e mb e r 2016
www.constructionglobal.com
Building bridges within the business
Kelly Irwin on HOLCIM Australia’s procurement practices restructure
SPECIAL
focus on The future: Q&A: Hong Fabric-cast Kong Airport’s concrete Third Runway
IFA Hotels
and Resorts Jones Lang LaSalle JLL
&
EDITOR’S COMMENT
Building for the future HELLO AND WELCOME TO the December
edition of Construction Global. The cover this month features Hong Kong’s HK$141.5 billion Three-Runway System. Kevin Poole, Executive Director of the Three-Runway System (3RS) at the Airport Authority in Hong Kong discussed how the development will secure the region’s position in the aviation industry and ensure long term benefits as a result of increased air travel. Also featured is the use of ‘fabric caste’ concrete within construction. Designers Joseph Sarafian and Ron Culver have created a product which will provide flexibility in the construction of unique design projects, which they seek to develop further. Also included is our top 10 US megastructures, which have provided numerous benefits throughout the region. We sincerely hope you enjoy the issue, and as always, please tweet your feedback to @ConstructionGL
Enjoy the issue! Catherine Rowell Editor catherine.rowell@bizclikmedia.com 3
CONTENTS
F E AT U R E S
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PROFILE
Hong Kong’s HK$141.5 billion Three-Runway System LIST
TECHNOLOGY
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The Future: Fabric-cast concreate 4
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TOP 10 US MEGASTRUCTURES
Holcim Australia & New Zealand
C O M PA N Y PROFILES
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Australia and New Zealand
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IFA Hotels & Resorts Middle East
60 68 T5 Data Centers USA
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Jones Lang LaSalle JLL USA
PlanNet Design & Construction, Inc. USA
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G6 Hospitality LLC USA
100
Andrade Gutierrez SA Latin America
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PROFILE
Hong Kong’s HK$141.5 billion Three-Runway System will solidify Hong Kong’s position within the aviation industry W r i t t e n b y : C AT H E R I N E R O W E L L
PROFILE
The Airport Authority Hong Kong (AA) is a statutory body wholly owned by the Hong Kong SAR Government. Established in 1995, the AA is responsible for the operation and development of Hong Kong International Airport (HKIA). We spoke to Kevin Poole, Executive Director of the ThreeRunway System (3RS) at the Airport Authority in Hong Kong to discuss how construction work is progressing and how the work will provide long term benefits to the region. Led by a management team comprising experts from different sectors, the AA’s 1,500-strong staff aim to reinforce Hong Kong International Airport (HKIA)’s status as an international and regional aviation hub. and an engine of economic growth for Hong Kong.
What are the aims and rationale of the 3RS expansion project? With more than 100 airlines connecting to over 190 destinations worldwide, HKIA is a leading international and regional aviation hub that solidifies Hong Kong’s status as “Asia’s World City”. All three traffic figures registered new records in 2015, with flight movement and passenger throughput grew 3.8 8
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percent and 8.1 percent to 406,020 and 68.5 million respectively. Cargo throughput reached 4.38 million tonnes and has remained the busiest cargo airport in the world. There is a pressing need for HKIA to develop into a Three-runway system (3RS) as the actual growth of air traffic is ahead of forecast. The current Two-runway system (2RS)’s capacity is likely to reach
H O N G K O N G ’ S T H R E E - R U N W AY S Y S T E M
its maximum of 420,000 annual air traffic movements (ATMs) soon, according to the latest projections. The 3RS is crucial to the future of Hong Kong as the infrastructure will allow HKIA to handle future traffic demand as estimated by IATA Consulting, that is, 102 million passengers and 8.9 million tonnes of cargo, in addition to 607,000 aircraft movements per year by 2030.
Furthermore, the 3RS project will reinforce Hong Kong’s competitiveness as nearby airports are expanding their facilities. Without 3RS, airlines will focus on more lucrative routes, resulting in rising ticket prices while fewer service destinations that travellers and businessmen suffer. The situation will have negative impact on Hong Kong’s overall competitiveness. 9
PROFILE How will Hong Kong and the region benefit from this project? HKIA supports the development of Hong Kong’s four economic pillars - financial services, trading and logistics, tourism and producer and professional services, which together accounted for approximately 58 percent of Hong Kong’s GDP in 2014. HKIA also has helped attract over 7,500 multinational corporations to set up regional headquarters and offices in Hong Kong. The launch of the 3RS project will solidify Hong Kong’s status as international and regional aviation hub, as well as enhancing the regional trading, logistics, professional service activities and tourism. The 3RS project will also spur local economic development and employment. The project is estimated to contribute overall HK$184 billion to Hong Kong’s GDP in 2030, equivalent to around five percent of GDP. Upon its commission in 2030, 3RS is expected to bring 123,000 direct jobs. What size workforce is required to carry out the work? The beginning phase of 3RS reclamation mostly involves capital 10
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intensive activities, and has a smaller demand for manpower. During the construction phase of 3RS, it is estimated that employment created will amount to around 139,000 man-years of job. AA estimated the construction peak to occur in 2022-2023, which around 10,000-13,000 workers will be working on site at the same time. AA will stay in close communications with the Government and industry stakeholders, and closely monitor the construction manpower supply and demand. How much will the project cost to undertake? The total estimated construction cost is HK$141.5 billion at moneyof-the- day prices. Investment of up to HK$22 billion, amounting to 15.5 percent of overall construction cost will be used for green design and construction methods. For example, non-dredged methods including deep cement mixing will be adopted for land formation and horizontal directional drilling will be employed for aviation fuel pipeline diversion, while the 3RS buildings will incorporate a range of green and
H O N G K O N G ’ S T H R E E - R U N W AY S Y S T E M
sustainable features in their design, construction and operational aspects. The financial arrangements for the 3RS will be based on the “joint contribution and user-pay” principle. Funding will be provided through three channels including HKIA’s retain operational surplus, collection of Airport Construction Fee (ACF), bank loans and bond issuance. The authority has strictly followed prudent commercial principles when preparing the financial arrangements and considered numbers of factors such as the impact of AA’s credit rating, additional costs on passengers
and HKIA’s competitiveness. HKIA has started collection of ACF on 1st August, ranging from HK$70180 depending on flight distance, ticket class and destination. What are the project schedule and timeframes for completion of each area? What preliminary work has been undertaken to ensure the project is a success? The eight-year construction of 3RS is expected to be completed in 2024, with the commissioning of the new runway in 2022. The construction for the 3RS 11
PROFILE
Kevin Poole
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commenced on August 1 2016 which involves formation of approximately 650 hectares of land. The construction work will be completed in phases for subsequent construction of new runway, taxiway system as well as a Third Runway Passenger Building with over 50 parking positions. Thorough research and study have been conducted before the construction. AA has an all-round management approach that closely monitors progress and considers major risks and timely intervention to make sure the project remains on schedule. What challenges will the project face? How will the project affect the environment and what measures are in place to offset any impact? 3RS project is expected to take eight years to complete. The major challenge is to complete the project on time and within budget. Environment protection is one of the core values of HKIA. In accordance with the requirement in the Environmental Permit (EP), AA has undertaken the Environmental Impact Assessment (EIA) as an
integral part of 3RS project, which consists of a series of studies assessing the potential environmental impact across 12 key aspects such as air and water quality, noise, terrestrial and marine ecology. AA has adopted over 250 measures proposed by the EIA report to mitigate, avoid and reduce the potential impact to environment. The 3RS buildings will incorporate a range of green and sustainable features in their design, construction and operational aspects. One of the challenges of the reclamation is that part of the site resides on contaminated mud pits. Advanced reclamation method such as the first adopted deep cement mixing was introduced as engineering solution to mitigate and avoid the impact to the environment. Meanwhile, horizontal directional drilling for submarine aviation fuel pipeline diversion will be adopted to avoid disturbance to seabeds. Recycled materials will be used when possible for 3RS’s building and facilities to implement principles of reducing pollution, reusing and recycling of waste. The design of 3RS terminal is 13
PROFILE energy efficient with modern glass facades and building envelopes to reduce indoor heat and regulate the needs of air conditioning. Numerous sensors will monitor the light intensity within the terminal and adjust the light levels automatically. How important is technology to this project? The AA has committed to the use of the latest Building Information Modelling (BIM) techniques which will enhance the design, construction and facility management of the development.
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AA deploys innovative technology to airport operations with a view to developing HKIA into a smart airport, enhancing efficiency and automation. Soon, travellers will be able to print their boarding passes and luggage tags at home, or use the mobile boarding pass to check in their bags at one of the self-bag drop points at the airport, thus completing the entire check-in process without ever having to approach a counter. Combined with i-Beacon technology, AA’s “My flight app� will provide way finding and food order functions in retail areas of airport
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in future. The apps will also offer luggage arrival alert soon and thus reduce passengers’ waiting time at the baggage reclaim counter. GPS system has been introduced to track vehicles and facilities at the airport, trolley monitoring system has also been applied at baggage reclaim area to ensure timely replenishment. What sustainable initiatives are the company committed to? AA is committed to contributing to economic development while improving the quality of life of local community. We value
environmental protection and shoulder social responsibility to ensure sustainable development. Striving to be one of the world’s greenest airports, AA has implemented series of green measures for environment protection. The newly launched Midfield Concourse features more than 35 green initiatives, including low-energy lighting systems, high performance glazing panels, solar shading and north-facing skylights to maximise the use of natural light and regulation of indoor temperatures. The Midfield Concourse aspires to be one of the first BEAM Plus Gold Standardcertified buildings in Hong Kong. AA has launched carbon reduction programmes since 2010. The airport pledged to reduce carbon emissions by 25 percent per workload unit by 2015 from 2008 levels. We are working on the new target for the next five years. AA will replace the entire vehicle fleet with electric or fuel-efficient/ hybrid vehicles by 2017 to reduce air emissions. All new airside vehicles are required to be fuel efficient, which is a prerequisite for the licensing process. 15
‘Fabric-cast concrete’ aims
to represent and support future construction methods Writte n by C AT H E R I N E R O W E L L
TECHNOLOGY
TECHNOLOGY
The use of concrete within building has been utilised for over 10,000 years and has increasingly become one of the most applied materials within construction. Once cement is dried, concrete provides solid, permanent structures which are durable, weather resistant and reliable. However, concrete is not known for its flexibility within architectural design and structural builds – until now WHILST STUDYING AT UCLA Suprastudio in California, Designers Joseph Sarafian and Ron Culver were asked, “how can motion be integrated into the traditionally stagnant casting process?” by renowned architect Julia Koerner. Eager to create a method in which concrete could be used to create innovative and flexible designs, the duo began a project as an independent study which would see them robotically manipulate fabric into various shapes. These early experiments were encouraged with the support of Peter Vikar, Shobitha Jacob, Oscar Li and Qi Zhang. The duo’s aim to create a new method in providing flexibility within a material known for its rigidity, 18
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in order to incorporate larger architectural forms would therefore enable architects and designers to build a variety of structures and provide increased freedom. Through the use of parametric design, which Sarafian explains is “both a movement and a methodology for designing intelligent controls for manipulating and deriving new geometry in 3D software”, sewn lycra sleeves are attached to “6-Axis Kuka robots and stretched into position. Concrete with a fiber admixture is then poured into the sleeves and hardens. The fabric is stripped away with minimal waste, the robots re-position themselves and a new piece is cast”, providing unique fabric forms or shapes.
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TECHNOLOGY
“Since the entire composition is designed in 3D, each unique connection angle can be coordinated for a seamless connection in the physical world�
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FA B R I C - C A S T C O N C R E T E
With many sections to add to the final form, a 3D printed node was created to ensure the various pieces are correctly positioned. Sarafian explains by stating that the node had to be capable of “locking adjacent concrete arms in place” and be “easily installed and uninstalled without an exposed bolt”, as otherwise it would not be fit for purpose. To ensure stability, the duo incorporated a “truncated tetrahedron as a geometry that could be fixed to the concrete through a nut that is cast into the concrete. The bolt is then driven through the 3D printed “Coupler” and into the concrete.” “Since the entire composition is designed in 3D, each unique connection angle can be coordinated for a seamless connection in the physical world”, he added. Sarafian acknowledges that the use of software is paramount for the designs to be efficient and allow the segments to be fixed accurately into position. The inclusion of Rhinoceros software and Kangaroo3D (an add-on for Grasshopper 3D) allows the duo to obtain essential modelling and has “simulated the effects of gravity on the filled fabric
to build an accurate 3D model.” “From this model we were able to extrapolate the locations of each robot arm necessary to create each shape. Those coordinates were then sent to the robots and the fabric was filled.” This new innovative method will provide increased advantages in architectural design and construction. Sarafian explained, “In architecture, we spend maybe 10% of our time designing and about 90% of our time representing those designs (more or less, depending on the firm). This and other methods present a means from going straight from the computer to built form without the intermediate step of drawing and communicating to a third party. “We’ve automated a concrete casting process that dates back to antiquity. Once the base shape is sewn, myriad variation is enabled simply by the manipulation of the robot arms. With casting and other processes, there are savings associated with repetition (using the same form).” “With this technique, controlled variation is now just as cost-effective as repetition because the robots are 21
TECHNOLOGY doing the precise positioning and fabric takes the natural form that is engineered for. So for designers, it allows for variation to be integrated into their design without being value engineered into a repeated module. For contractors it removes the traditional tolerances of casting concrete (1/2”) replacing them with micron-level precision.” Mark West at the University of Manitoba (founder of The Centre for Architectural Structures and Technologies) has previously undertaken several experiments in fabric formwork; however, the duo’s work has delivered several challenges. The designers acknowledge that public opinion regarding their innovative method is mixed, with many claiming robots take away the unique skill and expertise of design and innovation. However, Sarafian asserts, “there is still a huge level of “digital craft” and precision that goes in”, although now digital technology is now ensuring the delivery of key results. “We learned this early on when we inaccurately modelled one of the end-effectors, which would have led to inaccurate shapes for every 22
December 2016
module. This would have resulted in a compounding chain of inaccuracies that would have prevented the entire composition from fitting together. Needless to say, we learned the importance of modelling a precise digital environment.” There are continual developments within fabric form casting since Sarafian and Culver’s original breakthrough, which they are only too keen to progress. In the next 12 months, the duo has stated their desire to “achieve built forms which can be appropriated into the primary structure of a building, not merely a facade or interior partition application”, which will deliver increased advantages in future builds. To provide widespread knowledge of their methods for future construction works, Sarafian and Culver presented the next round of research at the Façade Tectonics World Congress in Los Angeles, alongside the Now, Next, Future Conference, to discuss how further developments will shape and influence design and construction methods, which will provide increased benefits within the building industry.
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TOP 10 US
MEGASTRUCTURES America is home to some of the most iconic megastructures in the world, driving millions of tourists to the country each year. Home to several iconic construction companies and architects, cities like New York and San Francisco are driving the construction boom as a result of economic growth, driving employment, housing and the need to strengthen current infrastructure routes. We take a look at top 10 megastructures within America which continue to inspire architects and construction workers alike, creating new ideas and solutions for years to come W r i t t e n b y : C AT H E R I N E R O W E L L
TOP 10
TOP 10
SPACEPORT AMERICA: NEW MEXICO COMPLETING IN 2006 and opening to the general public in 2011, Spaceport America is a commercial spaceport based in New Mexico, accommodating a variety of aerospace launch vehicles. Owned by the New Mexico Spaceport Authority (NMSA), the $200 million Spaceport is home to SpaceX and Virgin Galactic incorporated a variety of teams in the build’s construction. SDV Construction undertook vital works for Spaceport America’s Phase 2 projects, alongside contractors B&D Industries and historic and cultural firms, Van Citters Historic Preservation and Jemez Mountains Research Center, LLC, who worked to ensure reduced impact on the surrounding area, in in turn preserving sites of
cultural, historical and archaeological importance. Zia Engineering & Environmental Consultants, LLC were also awarded the contract to support the works undertaken. Sustainable features have been embedded to ensure the design obtained LEED certification. Built with recycled and/or local materials has ensured the reduction in CO2 emissions, in addition to the use of public transport, such as the public shuttle which has ensured the reduction in visitor travel to the site. Also incorporated is the use of glass curtain walls with low e-glazing, which have been placed within the exterior of the build. Furthermore, waste water is recycled at a wastewater treatment plant on site, and natural light is utilised through the use of skylights, reducing the level of energy throughout the build.
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9 WILLIS TOWER (FORMERLY THE SEARS TOWER) BUILT BY ARCHITECT company Skidmore, Owings and Merrill in the 1970s to accommodate retail giants Sears Roebuck and Company, the concrete and steel high rise building now dominates the Chicago skyline at 110 storeys and has become one of the top 10 tallest megastructures in the world at *** Constructed at a cost of over $175 billion, the tower has over 16,000 large windows to enable maximum light to enter the building, creating a light and airy space for over 12,000 occupants and 25,000 daily visitors, in addition to polished granite flooring incorporated throughout. In the 1980s, two television antennas were factored into the tower’s
design, which are now home to local broadcasting and radio stations. Also, incorporated at the tower is a Skydeck, which has become one of the top tourist attractions in Chicago, enabling tourists to see across three different states at 1,353ft. Through extensive renovation work in 2009, the Skydeck now includes ‘the Ledge’ on the 103rd floor, enabling tourists to view the skyline through glass boxes which extend from the build. Now owned by Blackstone Group, the Willis Tower incorporates several sustainable features, with reduced energy and water consumption per year, in addition to reducing the annual electricity consumption by over 30 percent through sophisticated lighting systems. they reach the top height of 456ft, “riders descend 418ft back down to Earth in a 270 degree spiral.” 27
TOP 10
GOLDEN GATE BRIDGE: SAN FRANCISCO THE GOLDEN GATE Bridge is one of the most iconic megastructures in San Francisco, officially opening in 1937 to provide increased links from the city to Marin County, which was previously only accessible by ferry. Built at a cost of over $35 million, the suspension bridge was built by McClintic-Marshall Construction Company, which became part of Bethlehem Steel Corporation, alongside engineers Joseph Strauss and Charles Ellis and architects Irving Morrow and Leon Moisseiff.
The bridge incorporates walkways, in addition to six lanes, accessible for pedestrians, vehicle users and cyclists. The iconic colour was selected by Irving Morrow, who is responsible for the iconic walkways and overall design, but worked in collaboration with Ellis who was behind the structural, engineering elements to the megastructure. With over one million total rivets within the bridge structure, and twin towers which reach heights of nearly 750ft, the bridge successfully links both areas and has provided numerous advantages within the region, boosting the local economy and access within the regions.
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TOP 10 US MEGASTRUCTURES
7 KINGDA KA: NEW JERSEY
THE IMPRESSIVE ROLLERCOASTER, Kingda Ka, situated at Six Flags Great Adventure is the tallest steel rollercoaster in the world at 456ft, reaching top speeds of 128mph in 3.5 seconds through the use of a hydraulic launch mechanism.
Built by Intamin, the rollercoaster opened in 2005 and has become one of the most popular rollercoasters in the region, incorporating four trains to cater for the increased number of thrill seekers. Once they reach the top height of 456ft, “riders descend 418ft back down to Earth in a 270 degree spiral.” 29
TOP 10
GRAND CENTRAL STATION: NEW YORK REBUILT AT THE start of the 20th century to accommodate electric trains against a growing metropolis, Grand Central Station has become one of the most stunning megastructures within New York, with strong roots embedded within the city, to which it has been placed on the National Historic Register. Designed by architects Reed & Stem and Warren & Wetmore alongside chief engineer William Wilgus, the split platform station (over several
levels), incorporates 44 platforms and has become the largest station in the world. The build now incorporates restaurants, retail stores and a museum through an extensive renovation. The use of materials has created a grand station with marble, intricate interior decorations, granite and steel utilised within the station’s construction. The ceiling has been restored to its former glory, depicting an elaborate skyscape, originally designed by French artist Paul Cesar Helleu and undertaken by Hewlett-Basing Studio alongside Helleu Consulting.
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TOP 10 US MEGASTRUCTURES
5 THE PENTAGON: WASHINGTON DC DEVELOPED BY ARCHITECTS George E. Bergstrom and David J. Witmer, the Pentagon was constructed to accommodate the growing number of military and civilian employees, who were spread across 17 different office buildings. Contractor John McShaine was also commissioned to undertake the construction. Built at a cost of over $35 billion, the
concrete build was swiftly finalised in two years with the use of over 4,000 workers, becoming the largest office building in America, spanning 29 acres and over 17 miles of corridor over four storeys. The five-sided concrete structure, constructed through over 680,000 tonnes of sand and gravel from the Potomac River has been reconstructed as a result of the September 11 2001 attacks, with the first floor undergoing extensive renovation. 31
TOP 10
INDIANAPOLIS MOTOR SPEEDWAY WITH ITS OFFICIAL launch in 1909, the Indianapolis Motor Speedway became the first racing arena in America and is now one of the most famous racetracks in the world, home to Red Bull Indianapolis GP, the Angie’s List Grand Prix of Indianapolis, NASCAR’s Brickyard 400 and Indianapolis 500. Envisioned by businessman Carl Fisher, the 2 ½ mile track was originally constructed by
approximately 500 workers with crushed rock and tar, which has since been renovated with the use of over 3 million bricks and asphalt, which has been placed on top of the original structure to enable cars to reach top speeds yet guarantee increased levels of safety. With the capacity to seat around 400,000 citizens at each event through the construction of grandstands and various seating areas, but has been under continual refurbishment and renovation since the 1940s to remain accessible for competitions such as the Formula One World Championship and the United States Grand Prix.
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TOP 10 US MEGASTRUCTURES
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THE CENTRAL ARTERY / TUNNEL PROJECT
THE CENTRAL ARTERY / Tunnel project was one of the most complex projects undertaken within America, in order to reduce congestion and strengthen existing transport infrastructures. The project saw the demolition of the area’s six lane central artery (I-93), which was then replaced with an undergone highway, two bridges and connecting links to Boston’s Logan International Airport and linked downtown Boston to the waterfront. With funding for the project approved in 1987, the project took approximately 15 years to construct due to opposition, escalating costs and construction difficulties,
finally commencing in the 1990s. Over 5,000 workers undertook vital works to ensure the impact to traffic flow remained limited throughout the building work, such as the construction of concrete walls to support the old highway, a bespoke jack to support the railway tracks at South Station and the implementation of horizontal braces. Constructed by Bechtel Corporation and Parsons Brinckerhoff were responsible for the projects design, alongside engineer Christian Menn who designed the Leonard P. Zakim Bunker Hill Memorial Bridge. The teams worked in collaboration with a multitude of contractors: Skanska USA, Modern Continental, contractors Tutor Perini, Jay Cashman, Obayashi Corporation, J. F. White Contracting and Kiewit.
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EMPIRE STATE BUILDING: NEW YORK BUILT IN THE 1930s, the Empire State Building (ESB) is one of the tallest buildings in America at 102 storeys, drawing in thousands of tourists each year. Now listed on the National Register of Historic Places, the building reaches heights of 1,454ft providing stunning views of New York. Designed to incorporate an art deco style by William F. Lamb from architectural firm Shreve, Lamb & Harmon Associates, the building is constructed with limestone from the Empire Mill situated in Sanders, Indiana, with a lobby traversing three storeys. Built from the top
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down, the skyscraper incorporates over 6,000 windows, with over 3,000 workers undertaking vital work, alongside contracts The Starrett Brothers and Eken. Now home to over 100 local businesses, the mixed-use building has undergone extensive renovation works to incorporate world-class technology, such as modern elevators from the Otis Elevator Company, and has become one of the tallest sustainable skyscrapers in the world, obtaining LEED certification in 2011. The 86th and 102nd floors of the building showcase observation decks which provide full panoramic views, at which the ESB has become a key tourist landmark throughout New York, including a gift shop on the 80th floor.
TOP 10 US MEGASTRUCTURES
1 ONE WORLD TRADE CENTER ALSO KNOWN AS the ‘Freedom Tower’, built after the September 11 2011 attacks, the One World Trade Center officially opened in 2014 and became the sixth tallest skyscraper in the world, reaching a total height of 1,776ft. Designed by architect David Childs from Skidmore, Owings and Merrill in New York, the new construction incorporates several security features to ensure the safety of individuals who utilise the rentable space. The build sits on a 18ft concrete base to support the structure from any potential attack, with a steel outer framework and 3ft thick reinforced concrete walls in all walkways and shaft networks. Tishman
Realty & Construction led the vital construction work, having worked on the original World Trade Center. The layout of the building is complex with exterior glass facades, yet the edges at the base are chamfered, transforming the tower so that the centre has become octagonal. The observation deck, located over 100 floors above ground and several eateries have turned the build into a firstclass mixed use building for both businesses and visitors to the area. Similar to many modern constructions, the build has become increasingly sustainable, with over 80 percent of its waste products which are now recycled. Many internal structural elements have also been built from recycled materials.
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Financing hospitality Written by Nell Walker Produced by Jordan Platten
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I FA H O T E L S & R E S O R T S
CEO of IFA Hotel Investments, Joe Sita, describes the company’s innovative ventures and plans for expansion
I
FA Hotel Investments (IFA HI) is a wholly-owned subsidiary of the publically-listed IFA Hotels and Resorts (IFAHR), and Joe Sita is its CEO. He has 37 years of hotel experience, beginning with Southern Pacific Hotel Corporation before moving onto Accor Asia Pacific, where his expansion strategy caused the business to become the largest hotel group in Australasia at the time. Sita then became Executive Vice President of Development at Carlson Hotels Asia Pacific, and prior to joining IFA HR he was founding CEO of Istithmar Hotels, which garnered a huge worldwide portfolio of hotel assets under his four years of leadership. Now, Sita is based in Dubai along with the majority of IFA Hotel Investments’ team. Having led the establishment of the various business arms of IFA HI, his position involves overseeing the business’s various services including a client advisory business, facilities management, staff housing, and joint ventures such as, vitally, its partnership with Bespoke Hotels International. “We have a 51/49 venture with Bespoke in the Middle East & Africa,” Sita explains. “They have about 200 hotels under their umbrella and
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Joe Sita - CEO
An accomplished CEO, Sita brings more than 30 years’ experience to his position as Chief Executive Officer of IFA Hotel Investments. In this role, Sita drives the strategic direction of IFA Hotels & Resorts’ operational asset portfolio, currently valued at approximately USD$1billion. The portfolio includes a number of five-star hotels, resorts and luxury residential developments across the Middle East and Africa operated by Fairmont, Mövenpick, Four Seasons, Kempinski and Legend Lodges. Infusing its luxury experience into ingenious space-saving design, IFA Hotel Investments has also been expanding its portfolio across North America, Europe and Asia through its ownership of the YOTEL brand.
I FA H O T E L S & R E S O R T S
the purpose of our partnership is really to exploit and expand that business here in the Middle East and Africa, and take advantage of the recently introduced legislation on holiday homes, which now legalises and regulates short-term rental of residential apartments. Now we’re the first branded holiday homes operator here in Dubai with Bespoke Residences. “In the hotel management space,
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in some cases, we’re competing head-to-head with the big players like Starwood or Marriott, in part because our clients are looking for brands that are not already represented and systems that are not overloaded with the number of properties they’ve got. Big brands are extremely saturated; there’s a Marriott, a Starwood or a Hilton on every street corner, but we can offer something different and more flexible.”
“When our members buy our product, they’ll have access to a global network of properties”
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EUROPE
IFA HI’s staff housing business, too, has proven an essential asset. Named Domus, the venture has identified a gap in the market for highquality and cost-effective worker accommodation, and IFA is close to finalising its first project which will house 6,500 staff in Dubai, to be expanded over the next few years. “In Dubai, 85 percent of the population is expat,” Sita says, “and a large percentage of those people are blue collar workers that need to be accommodated, fed, and transported. Nobody else is offering that at the level of quality Domus will.” In the company’s client advisory business, an experienced group of consulting and operational professionals looks after IFA HR’s global portfolio, managing $1 billion worth of assets and overseeing pre-development, pre-opening, and operational services. “We carved this service out based on the asset management of our own hotels,” says Sita. “Obviously we own a number of hotels both in the region and globally, and so my client advisory team
looks after the day-to-day asset management of those properties. That’s our core business, and in the seven years I’ve been here, we’ve grown that business.”
Supply chain Logistics and procurement can be complicated in the hotel industry. Sita’s colleagues in IFA Hotels & Resorts Middle East has a team responsible for the delivery of hotel & residential projects, which is undertaken with the operators’ input through third party procurement companies that specialise in very large contracts. “In our business, procurement covers a number of different areas,” says Sita. “For example, in our facilities management business – which involves various flexible B2B and B2C services – we are procuring parts for all of the buildings we operate. That’s a big network. We have a team to look after procurement; it’s not a very large part of our business, but it’s very important. We pay a lot of attention to it and we certainly try
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I FA H O T E L S & R E S O R T S
to adapt best practices in terms of processes and procedures. “We want to provide the best product at the best price and tend to it as best we can, and we rely on the procurement team and operators for that. We rely on them to make sure they’re procuring at the best possible price and quality. The owners of the hotels don’t get deeply involved in that – we just make sure the team
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is doing things the right way.”
IFA’s future IFA Hotel Investments is entirely focussed on values and growing the various branches of its business, some regionally and some globally. For example, outside of Dubai IFA will be expanding Aria, its vacation ownership business, regionally, moving into Saudi
EUROPE
Arabia and specifically Mecca, because the market is always looking for accommodation there. “We also want to move east, to Asia,” Sita says. “Indonesia and Malaysia are targets for us, and then west into Europe. The GCC market loves Europe, especially the UK, France, Spain, and Italy – they’re targets for us. Lastly, the United
States, which is a very saturated vacation ownership market so it will be a little bit more difficult, so we’re leaving that until last. This is my vision of growing Aria into a global vacation ownership business, so that when our members buy our product, they’ll have access to a global network of properties.” Most of IFAs businesses are
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regional in nature, besides its vacation club, Aria, so many future plans are Dubaicentric. Bespoke is aimed entirely at the Middle East and Africa, where the company is especially keen to grow, and there are fresh opportunities beyond Sita’s ventures. “We might expand to the rest of the UAE: Abu Dhabi, because they have many of the same requirements we do, and further afield to Saudi Arabia, Qatar, and Oman, where there is a huge demand for this kind of accommodation,” Sita explains. “Ultimately, as the parent company for these various businesses and the company that I lead, we want to continue to grow this assetlight real estate services platform because that is what we are. We try to provide the intellectual property and expertise we have within all of our various businesses to partner organisations and clients. We’re not scared of joint ventures, and we’re typically the ones that initiate, conceive, and manage them. That’s our strength and we see that continuing as we move forward.”
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No
alarms and
No
surprises Texas-based budget hospitality group is right on target for its ambitious expansion Written by Hazel Davis Produced by Tom Venturo
G 6 H O S P I TA L I T Y
If
you’ve ever stayed in a Motel 6 property you won’t have been surprised with chocolates on your pillow (which probably only comes in one grade of softness). You won’t have been spoilt for choice when it comes to breakfast items and you won’t have top-of-the-range bathroom items. What you will have, though, is exactly what you thought you were getting when you booked, and that’s what G6 Hospitality LLC has built the brand’s reputation on. “We hold our standards pretty tight,” says Jon Bateman, Vice President Design and Construction. “Our rooms are very important to us. Our guests expect a clean, comfortable room at an affordable rate and that’s the value proposition we offer consistently throughout the network.” G6 Hospitality LLC owns, operates and franchises more than 1,400 economy lodging locations under its iconic Motel 6 and Studio 6 Extended Stay brands. Headquartered in Dallas (Carrollton), Texas, the company employs nearly 10,000 team members across the US and Canada with projects in every state in the USA
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including Alaska. The programme uses consultants and associations to train on the latest design construction and safety methods. For franchises, G6 uses a prototype that allows flexible design and lets the franchisee configure their property in a shape that conforms to their site needs. The prototype is then designed with construction costs and profitable operations in mind and G6 provides the prototypical drawings for flexible layouts and sizes, preliminary site sketches and construction support.
“We hold our standards pretty tight” - Jon Bateman, Vice President Design and Construction
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Jon Bateman Vice President of Design and Construction
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When the Blackstone Group bought the company back in 2012, says Bateman, “they committed around $0.5bn in capital to renovate the corporate network. That was planned out over a five-year period. At the same time, the enterprise has a goal of growing the brand and hit somewhere in the neighborhood of more than 2,000 properties for the total network, and we are currently adding about 150175 new properties a year.” In fact, he adds, the 500 plus corporate locations will be complete in spring 2017. “There have been challenges, for sure,” says Bateman. “When you have a network as large as ours, half a billion dollars sounds like a lot of money but when you’re talking 500 plus properties, you have got to get creative on how you spend that money because, at the end of the day, you’re not going to be able to do everything you’d like.” Motel 6 and Studio 6, the iconic brands managed by G6 Hospitality, are economy brands so, says Bateman: “Everything we do has got to be value driven. We’re great at going out to our
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A franchise location in Muskogee, OK
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vendors and procuring products at the best possible price. We’ve been able to establish solid relationships and develop great partnerhips with our vendors. “On the construction side,” says Bateman, “We’ve found a very good niche of vendor. The midsize selfperforming general contractor usually does very well for our brands.” The G6 design is a big part of what distinguishes it from other brands. Says Bateman, “I think the fact that we’re able to design a very costeffective platform for our franchisees is one of our key differentiators in the economy segment. We also have a very efficient operating model that
has been very successful for us.” Bateman was hired for the role in 2014, he says: “One of the things that excited me most was how we’re changing the face of the economy segment. If you look at our rooms, they’re new rooms with wood-effect flooring, granite countertops in the bathroom, flat-screen TVs, modern furniture and contemporary soft goods. This is different than what you would think of as a typical economy room.” One of the key challenges for budget brands is getting new customers, says Bateman. “We’ve got these beautiful new rooms and if you’re a guest that’s never stayed with us and you’re driving by, you wouldn’t know. How do you get
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that guest that has never seen inside our rooms to realise the difference when they walk through the door?” The company has started upgrading some of its exteriors to match the interiors. It also opened nearly 10 brand-new Motel 6 or Studio 6 locations this year with another 20 properties planned for next year. Bateman explains, “Motel 6 is your traditional road-side motel with a limited service of a hotel room, flatscreen TV, etc. We don’t provide the extra amenities offered at other hotels like conditioner or breakfast. Studio 6, our extended stay lodging option, is geared more towards business, contractors or people who are on a job for three to six
months, and thus our locations are furnished with a kitchenette, dishes, refrigerator, and enough space to provide the comfort of home while away from home. “Everything you’d need to live comfortably for an extended period of time.” Some new franchisees come in having operated a mid-scale brand, offering breakfast and other amenities that take considerable overheads. Says Bateman: “We get them up and running as a new and renovated property and they find that with less overheads and less services they can work less and make the same amount or more money.” Bateman adds: “Several of our franchisees that have jumped on board with similar designs to ours. They really recognize the value in a well-designed, cost
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effective building and an effective operating model. It’s a good opportunity for both the franchisee and a network to improve its image and offer a better value proposition.” Design highlights for Bateman include the company’s Denver corporate location. “We really redid the entire face of the property and it’s a pretty dramatic difference from before,” he says. “We’re pretty fortunate that we have got such a great group of franchisees that have really partnered with us
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“Our guests expect a clean, comfortable room at an affordable rate AND THAT’S
THE VALUE PROPOSITION WE OFFER consistently throughout the network” – Jon Bateman, Vice President Design and Construction and seen the value of renovating the properties,” Bateman adds. But still there are going to be hiccups along the way: “There’s always going to be challenges when you renovate approximately 150-175 properties a year. You might have permitting issues, construction issues, financing issues and any other variety of challenges pop up. But this is completely typical when you’re dealing with these kinds of numbers. Denver, CO M6 after exterior renovation
We have an outstanding Project Team that is used to these challenges! Through it all, one of the things the group prides itself on, says Bateman, “is that everything we do is in support of our operators. We have got a great group of project managers, architects, engineers, and support staff that can provide guidance to our franchise partners. Our team is here to provide project support to both our Corporate and Franchise Operators.” Franchise Studio 6 new construction location in Muskogee, OK exterior
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JLL: Guardian of information Jason Bell, Vice President of Data Center and Technology Services at JLL, describes the fast changing world of data and technology services
Written by Jackie Cosh Produced by Tom Venturo
Jones Lang LaSalle
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ith over 62,000 employees in 280 offices in more than 80 countries, JLL (Jones Lang LaSalle) is well placed to advise on an ever changing data center industry where changes to data sovereignty and cyber security in one country impacts across the globe. From modest origins in London in 1783, JLL has grown from a family auctioneers, through many mergers and acquisitions, to become a
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Fortune 500 company, with a record gross revenue of $6 billion in 2016. Now a global professional services and investment management firm specializing in real estate, JLL’s expert teams provide integrated services to clients seeking increased value by owning, occupying, developing or investing in real estate. Jason Bell is Vice President of Data Center and Technology Services and took on this role in October 2015, after
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having built up a successful career in IT services over more than 20 years. Coming from a leading provider of wholesale colocation and knowing the market well, he was impressed by the mature, global data center practice at JLL and could see why the company has been so successful. Bell says: “The intellectual capital, JLL’s investment in its global platform and latest technology, and geographic coverage has positioned JLL to where it is in the marketplace.” JLL’s Technology Real Estate and Data Center Practice provides advisory services that support client’s data center, 3rd party colocation and cloud selections. Furthermore, JLL offers a full portfolio of IT services with strategic alliance partner, Hidalgo Communications, who assists JLL in providing IT network and managed services over a vendor neutral platform that aligns with the client’s IT strategy. This combination has a successful global track record of generating IT and real estate savings for corporations by completing a comprehensive diagnostic on their IT and real estate costs. They
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Jason Bell Vice President
Jason Bell is Vice President in the Technology Services Group in JLL’s New York Office where he is responsible for providing Data Center, Colocation, Cloud, Managed Services and Network Services to JLL’s global client base. Mr. Bell provides mission critical infrastructure, data center and cloud solutions and strategies ensuring optimal cost structure and operational efficiencies that align with each client’s security thresholds. In addition, he advises clients on network and managed services that support client’s connectivity in terms of latency, cost, scalability and interoperability.
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have successfully represented in the market with this explosive clients such as IBM, JP Morgan growth. JLL helps companies simplify Chase, Verizon and Level 3 the choices in the marketplace for Communications to name a few, colocation and cloud services. saving companies millions of dollars Bell explains: “Security is very by implementing a comprehensive important in terms of how clients diagnostic and strategic plan. are adopting the cloud. Today, you Bell says JLL creates an IT Playbook are seeing more businesses being based on the client’s IT strategy vulnerable to cyber security attacks supporting the various business which plays into what type of cloud needs. Areas of evaluation deployment- private cloud, include IT and application hybrid cloud or public assessment, security cloud, best completes and compliance audit each business and an application application. and physical We also see infrastructure clients needing Number of utilization review. to connect to the Employees at Jones Once completed, largest technology Lang LaSalle JLL and their client cloud providersreviews this evaluation Amazon Web Services, and then the selection process Microsoft, Google, IBM Softlayer, starts on choosing the optimal and Oracle Could to name a few as data center and cloud portfolio. part of the client’s cloud strategy to From cloud adoption to data support the client’s needs for agility, sovereignty, the data center industry scalability and on-demand needs. is experiencing a host of new change When discussing global drivers, all while it continues to deployments, data sovereignty is an explode with vigorous growth. Bell issue which now comes up often. mentions: “We are seeing complexity Data sovereignty, in short, data laws
62,000
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pertaining to specific countries, has been brought to the fore since the UK voted to leave the EU. Brexit is keeping many busy, working out whether data in UK will still be able to connect and migrate to other parts of Europe, and the impact this will have globally. As Bell says: “That is another big determinant in terms of where deployments are made.” Globally, the multi-tenant data center market is expected to rise at an annual growth rate of 12.1% between 2016 and 2018. North America remains the most competitive with 44% of the global data center market. The cloud managed services market is predicted to grow an annual growth rate of 16.6% through 2021, from $35.54 billion in 2016 to $76.73 billion in 2021. The top cloud providers are expected to pull in $120 billion by 2020, up by an annual 61% growth rate from $11 billion in 2015.” In a rapidly changing world clients have high expectations. “One of the
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things that really excites me is that JLL has the resources, the tools and platforms to align with the changes in IT, real estate and technology, as things are quickly evolving every day. Our clients are looking to optimize and we have the platforms to allow them to make accurate decisions in line with this evolving change.” Following on from JLL’s recent acquisition of BRG, a leader in workplace technology services, the company is going from strength to strength and Bell is looking forward to what the future brings. “The exciting reason why I am in this industry is that there has been double digit annual growth in data center, colocation and cloud industries. Cloud adoption and the size of the data center industry are predicted to both double for the next five years. Users and providers are spreading out across multiple locations, bringing new technologies onboard, and they are all looking for flexibility and agility to succeed.”
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Totem Design Concept
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BUILDING TECHNOLOGY to make your business work Written by John O’Hanlon Produced by Tom Venturov
PlanNet is a young business – a business for today – constantly reinventing itself as the market changes to keep data flowing, systems working, and helping businesses formulate and implement their IT strategies
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an McNary loves to start and grow new businesses. Back in the early 1990s he learned the business of construction project 72
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management as a senior engineer with Bechtel. But by 1998 he had found an outlet for his entrepreneurial passion by starting a new business within
the giant Syska Hennessy Group. “I enjoy creating new businesses, and creating new divisions within existing businesses that can leverage the skills of the organization in a new way and create new revenue streams for that business,” he says. That is why he was the ideal person to build out and lead a new division for PlanNet in 2011, when founder Steve Miano decided it was time to move forward from technology
consulting into data center general contracting. Now CEO of all three PlanNet companies (PlanNet Consulting, PlanNet Design & Construction and PlanNet Works) McNary is in his element as head of a company that has evolution as its strategy. “When Steve Miano founded the company in 2001, the technology consulting industry was quite new and he worked with Fortune 500 companies to help them optimize low-voltage systems in a building, the structured computer cabling, the telecom, phone switch, the AV
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components and the security to all be designed consistent with their business needs.” The business of PlanNet at that time was design consulting around workplace technology, supporting architects and contractors in this specialized field. Expanding with demand It’s still working effectively in that space, having recently completed a technology consulting project for Martin Luther King Jr. Hospital in Los Angeles; the new hospital required structured cabling to run its communications, security, nurse call and other systems. However, it morphed into other areas. In 2004 PlanNet moved into the data consulting field, helping
organizations like Mentor Graphics, Safeco Insurance and other similar corporations to develop strategies around their data portfolio. The company, it’s worth noting, has never thought it a good idea to expand by acquisition. Its strategy has been to identify market needs and grow solutions organically. Data center consulting remains a valuable business for PlanNet, he says. When McNary came in to add a new design and construction division for the business, the organization took a bold step into becoming a general contractor, construction manager and builder of data centers for large corporate clients, and colocation data centers (or ‘colos’ – independently run data center ‘hotels’
“We build technology to make our customer’s business work” – Daniel McNary, CEO
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where any large or small business can rent space as a way of outsourcing their servers and connectivity into a secure and dependable facility). This service expanded last year to include PlanNet Works, a design and build integration service that leverages the company’s consulting expertise to assess the needs of a client that is building or expanding a high technology space, providing them with a guaranteed price upfront and installing the equipment they need. By never standing still, PlanNet has achieved quite remarkable growth. From a turnover of around $3 million in its first year, it had grown to $8 million by 2010 and this year expects to hit $24 million. Through its strategy of growing new organic businesses to meet demand in the marketplace it has tripled its revenues in five years. Today PlanNet employs around 100 people, equally divided between technology consultants, design engineers and construction and implementation specialists. McNary estimates that two thirds of the entire company’s work is now in general contracting as opposed to
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Daniel McNary, CEO Dan McNary has focused his 25 year career learning about his client’s business and technology needs and building solutions for these needs. He wants to know what keeps them up at night. He is also constantly investigating technologies, systems and innovative techniques emerging in the data center industry to help solve data center problems and allow clients to return their focus to their own business demands. Dan uses his client-focused experience to lead a team of designers and construction professionals in developing facility infrastructure and building solutions that specifically address the client’s business and technology issues. Dan’s professional experience includes responsibility for the engineering and construction of some of the largest and most complex technical data center projects in the country. In the last 15 years, Dan has focused solely on working with fortune 500 clients providing project development, site selection, mechanical and electrical engineering and general contracting/construction management services of mission critical facilities.
PLANNET DESIGN & CONSTRUCTION
Global telecom data center
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technology consulting. The business is multi-faceted by design, bringing a construction component, a technology consulting component and a data center strategy component as the client wishes. “We build technology to make our customer’s business work.”
“We are also the quality assurance and safety engineers for these sites. Our construction business is formulated to deliver the service the customer needs, whether it’s general contacting, construction management of engineering assessments, or just staff augmentation in the Strategic partnerships construction management field.” Large companies these days are There’s no standard way to constantly having to make vital approach a project. For one client investment decisions around IT. which can’t be named but is building “Moving from on-premises servers leading-edge data centers throughout to the cloud or a colo has created the the United States, PlanNet is acting opportunity for us. We help customers as construction manager for a new that have large data center and $300 million data center in southern technology portfolios to evaluate their Virginia, directing the complete build options and translate their business out of the data center site work, shell, needs into a technology strategy and MEP systems. It’s a large, longthat works for them.” PlanNet term phased project, and the team is trusted by the very leading the program planning, largest IT companies construction phasing in Silicon Valley and incremental and around the commissioning world, as well as is bringing lean Technology telecoms giants construction and consultancy and like CenturyLink quality assurance implementation to implement skills to the job. their data center “Clients come construction. to us either as a
Type of Industry
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Chiller Plant Expansion_ Renovation for Global Data Center Provider
general contractor or to renovate live data center space.” It takes a very special background and skill set to work on electrical and mechanical systems within an operational data center without disrupting the systems on which its service level agreements (SLAs) depend. About a third of the work is done in California, but clients expect PlanNet to look after them in other places, so it now has offices in Phoenix, Dallas, Chicago, Portland and Clarksville, Virginia, as well as doing a
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“Clients come to us either as a general contractor or to renovate live data center space” – Daniel McNary, CEO
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considerable amount of work over the border in Montreal where it has helped build four data centers. Contracts with major clients like Mentor Graphics have taken it to Ireland where it designed and oversaw the construction of a data center, a mirror facility to another in Hillsboro Oregon. Addressing multiple markets There are far too many completed and live projects to list; even too many different business areas. In every case though, the relationship has to be a partnership in which PlanNet and its customers work out the best system together. For example, it
does a lot of work for Daimler Trucks North America (owned by Daimler AG who also owns Mercedes-Benz), which relies heavily on PlanNet to understand how to utilize colo services and the cloud: “On the corporate side we have a real opportunity to translate business needs and help clients understand financial impacts and opportunities from these options. They want us to be their advocate and help them as a business partner to negotiate the right space, with the right partner, over the right technology.�
PlanNet leadership (pictured from left to right): Gary Davis, Dan McNary, Steve Miano, Bob Otoupalik
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A lot of the time it is about smart buildings in smart cities. One major partner is building hotels and mixed-use facilities in California. PlanNet, along with performing the technology program management for all aspects of the technology systems, provides low voltage systems planning and design and implementation oversight for these facilities. In the case of one hotel in Hollywood it is also acting as the procurement agent for its hospitality systems including property management,
the point-of-sale system, Wi-Fi and the hotel service optimization systems. “We are helping them strategize around IT and how their hotel can create opportunities for their clients and we are installing that IT as an integrator,” says McNary. As the landscape shifts, PlanNet will shift. The big movement in the industry right now is data center consolidation. “Over the coming five to seven years I wouldn’t be surprised to see the number of data center players come down from 25
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to maybe five. I think we will also see the large technology companies like Facebook, Google, Amazon Web Services, HPE and Microsoft leaning more on the colo space to build their data center capacity. For us, all that is an opportunity. Upgrading is a
continuous process in the data center space, and that is just what we do really well. The facility infrastructure needs to change rapidly: a data center is a huge capital outlay, and we can ensure they upgrade effectively without impacting their SLA.�
(1)
(2)
(3)
Confidential financial institution data center
Year founded
2001
Number of employees
100
Revenue
$24 Million
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T5 Data Centers: the information safeguard Written by Tom Wadlow Produced by Tom Venturo
With its state-of-the-art data center network growing across the United States, T5 is able to provide its customers with flexible, safe and secure data center solutions
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ata has arguably become one of the world’s most precious commodities. The sheer volume of information stored and network/computer activity occurring within a data center facility has grown dramatically. Enter T5 Data Centers and its nine state-of-the-art facilities spread across the USA. Though the dramatic escalation of data storage may feel like a relatively recent phenomenon, T5’s executive team has been working together to deliver bestin-class solutions since 1995.
Over the past 20 years it has been responsible for delivering or operating more than 100 mission critical facilities spanning more than 11 million square feet of space. T5 prides itself on bespoke solutions and aligning its own principles with those of its clients, which include some of the largest companies in the world. Solutions and services T5’s portfolio of solutions and services is extensive and flexible. Its five main solutions comprise colocation, wholesale leasing, build-to-suit
T 5 D ATA C E N T E R S
programs, powered shells and sale in building and managing data lease-back. Services include network, center buildings. From procuring smart hands and third party first class equipment to carrying operations, all controlled and directed out data center upgrades and by comprehensive compliance. extensions, the T5 team is also on The latter is of critical importance hand to provide expert consulting to clients operating in industries and project management support. including healthcare, insurance, retail T5 Facilities Management and financial services, provides on-site mission where personal data critical services to data protection is of center owners. paramount Not only does importance to T5FM operate a company’s the company’s sound own sites, it operation also operates and external data centers – Tim Bright, reputation. for Fortune 500 Executive Vice President A key figure in companies in of Wholesale/ the solutions team sectors including Enterprise Markets is Chief Development financial services, Officer Jimmy Bailey, technology, retail, responsible for the design, aerospace, and energy. engineering, construction and commissioning efforts for every T5 Expansion to Chicago project. It is his role to ensure that T5FM has been rising to a new customers’ projects are delivered challenge since the summer. In on time and within budget. August, T5 expanded its own As well as deploying its data storage network of data centers to nine, solutions, T5 is also a proven expert following the opening of T5@
“Chicago is becoming an increasingly hot market for reliable data center services”
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Chicago. The company bought the 208,000 square foot Tier III facility, which is located in the Elk Grove Village suburb of the city. T5@Chicago is currently operational and partially occupied.
Additional capacity is being added to provide server-ready space for future customers. The building features a baseline Tier III infrastructure with an N+1 electrical and mechanical topology, secure private data halls available from 540kW to 9.0MW, and the ability to easily customize operational controls in each data hall to accommodate each customers’ unique data center services requirements. Speaking at the time, Tim Bright, Executive Vice
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Mike Casey
“The M&O Stamp of Approval provides validation that our T5@Atlanta data center has worldclass staffing and management protocols” – Mike Casey, President of T5FM
President of Wholesale/Enterprise Markets for T5 Data Centers, said: “Chicago is becoming an increasingly hot market for reliable data center services. We were fortunate to find an available, operational facility with the data center architecture and quality consistent with T5 Data Center standards. With this acquisition, we can offer Chicagoland regional customers move-in ready data center capacity, customizable and expandable to meet any need.” In addition to the existing 208,000 square foot, LEED Silver certified
building, T5@Chicago can be expanded on the adjacent, fouracre parcel by up to 28 MW. Comprehensive coverage Sitting alongside the new site in Chicago are several other state-ofthe-art facilities spreading across the country. These include data centers in Dallas, Colorado Springs, New York, Portland, Charlotte, and Los Angeles. Atlanta houses arguably the finest example of T5’s best-in-class facilities,
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described by the firm as ‘a purposebuilt, server-ready multi-tenant data center offering concurrently maintainable infrastructure to support companies with various data suite sizes and density requirements from 10 racks to over 2,500’. It is a 105,000 square foot bastion for compliance, assuring clients’ data are safe by meeting the stringent requirements of HIPAA, HITECH and PCI, creating a safe haven to support crucial IT functions of many blue chip companies. Clients are provided their own autonomous suites that are separated from one another by slab-to-deck fire-rated walls. In September the site received the much coveted Uptime Institute’s Management & Operations (M&O) Stamp of Approval.
The M&O assessment process evaluates data center staffing, organization, training practices; preventive maintenance, operating conditions, as well as planning, management, and coordination practices for data center resources. On receipt of the award, Mike Casey, President of T5FM said: “The M&O Stamp of Approval provides validation that our T5@Atlanta data center has world-class staffing and management protocols. We agree with the Uptime Institute’s notion that operational and management issues are fundamental to data center operations, and that with the right people and procedures, you can minimize risk and reduce operating costs. In fact, we formed T5 Facilities Management as an independent operation
T5@Atlanta
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because we recognize the critical value of M&O.� Though specifically granted for T5@ Atlanta, the company is planning to request Uptime Institute certification for other data centers in its portfolio. T5 is not stopping in Atlanta however, for another purpose-built data center is on its way in Dallas, a market where T5 has already seen success. T5@Dallas III will deliver 10.75 critical megawatts of capacity when it opens in Q2 of 2017, with leasing underway.
Partner power The company also draws on the expertise of partner companies in order to deliver industryleading solutions to clients. One such partner is STULZ Air Technology Systems, experts in data center cooling and able to provide anywhere from three to 730 kW cooling capacity. Another is Hood Patterson & Dewar, specialist in data center and mission critical facility commissioning, while WayPoint Systems also provides
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The T5 Executive Team GET TO KNOW US
mission critical services to T5. By continuing to work with and harness the knowledge of various companies operating in their own niche within data center operations and processes, T5 will no doubt continue to provide flexible, efficient and best-in-class services to businesses all over the USA. Its growing network of data centers, which continue to pick up industryrecognised accolades, are a safe bet for safeguarding critical data for enterprises big, medium and small.
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BUILDING BRIDGES within the business Tasked with restructuring Holcim Australia’s procurement practices, Kelly Irwin transformed her team from a disjointed ‘complaints department’ to an engaged and integral part of the business
Written by Adam Turner Produced by Erika Kracer
HOLCIM (Australia) PTY LIMITED (Holcim Australia)
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olcim Australia is a contracts and rarely left the office,” leading supplier of Irwin says. “The business didn’t aggregates, concrete leverage the potential strengths of and precast concrete products to the procurement department – if support projects from residential and there was any interaction with the commercial developments to major procurement team it was only to infrastructure. When management complain about something. identified the opportunity to improve “Today we’ve turned that around procurement processes in the and procurement has gone from a business, it handed the complaints department to an job of turning things effective unit which is really around to Kelly aligned with the business Year Founded Irwin – Head of and adds value. I’ve Procurement implemented what for Holcim I call the ‘the bums (dates back to 1901 in Australia and off seats’ policy Australia previously operating New Zealand. – you can’t be a under the well known Irwin’s good procurement ReadyMix and Humes brands) success saw person if you’re sitting her recently at your desk all day, awarded the CIPS every day: you need to Procurement and Supply get out there in the thick of it.” Chain Management Professional Irwin believes firmly in the of the Year, while her procurement importance of spending time building team has been awarded the strong and strategic internal and Holcim Australia Internal Customer external relationships. She adds: “A Excellence award three years in a row. successful procurement function “Previously there was no real must clearly understand the needs engagement with the business, the of their stakeholders, both internal procurement team just handled customers and external suppliers
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and this can only be done by regular engagement either face to face or by telephone - not simply sitting in office emailing. This is what the ‘bums off seats’ approach is all about.” The transformation included centralising procurement processes, taking away the ability for staff members throughout the business to raise purchase orders without approval. The procurement team now manages the purchasing of everything from pencils to explosives, along with services such as travel. Centralising purchasing decisions and processes presented change management challenges for the business, which Irwin approached in a ‘consultative fashion’. It helped to have the top-down support of senior management – not just locally but also from the LafargeHolcim head office in Zurich – but Irwin says this isn’t enough to ensure success if you can’t engage the various stakeholders, win them over and get them to come to you willingly. “The change management process was around communicating
Kelly Irwin Head of Procurement for Holcim Australia and New Zealand
CIPS Procurement and Supply Chain Management Professional of the Year, Irwin is responsible for a spend of over $900m at Holcim Australia and New Zealand. She has implemented a centralised structure and process aligned with the global business, as well as developed a highly effective procurement team which has been awarded the Internal Customer Excellence award three years in a row.
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with people, making the business, which requires getting sure they understood out of the office and talking to people, what was happening and the even if it means acknowledging your escalation procedures in place mistakes and learning from them. If if there was an issue,” she says. you’re just trying to put a positive spin “We had to sell ourselves to the on things and pretend everything is business and a big part of it was also perfect then you lose that credibility.” ensuring they could see the benefits of To help establish the procurement the changes and how we were adding department’s credibility within the value, which we supported by business, Irwin vowed there developing some really was no problem that good reporting tools to was too small for the improve visibility into team to address. the procurement One of the first process.” issues it tackled Number of employees For such a was complaints transformation regarding work to succeed, it pants being is important to too hot for some engage with the outdoor projects. wider business to prove “It might seem like a your worth, Irwin says. little thing but I knew we needed “That means truly understanding to show that we could get things the business – understanding what all done and it was a stepping stone in the stakeholders need from your team strengthening our relationship with and also how you can proactively the wider business,” she says. add value, streamline processes To take things to the next level Irwin and deliver synergies,” she says. recruited staff strategically, looking for “You need to establish and maintain people who had specific experience your credibility and integrity within in the area they’d be working with
3,000
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HOLCIM (Australia) PTY LIMITED (Holcim Australia)
rather than just generic procurement skills. A mix of procurement experience and wider business expertise, with a cross pollination of skill sets within the department, ensures the team has the skills to connect with the business. Holcim Australia primarily has a direct spend base, purchasing directly from suppliers, rather than an indirect spend base via third parties such as consultants – meaning the procurement team needs to really understand the business and its purchasing requirements. “They were a fairly new team who were, in some instances, coming into quite a challenging environment because they were taking procurement authority away from some staff and becoming a more integral part of their business processes,” Irwin says. “It was crucial that our procurement people really understood the business areas they were working with, in order to gain respect. “Despite these challenges our staff engagement score within the procurement department was very
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high at 80 percent. When we asked the team why they were so satisfied they said it was because they could see the difference they were making and felt like we had their back when they found themselves in a difficult situation. From my perspective, it’s much easier to sell yourself to the business when your staff are engaged and love what they do.” The procurement transformation program coincided with the downturn in the mining sector, which forced the business to refocus its sales pipeline as well as its spending practices. A drop in spending power means a drop in negotiating power, but procurement’s closer integration into the business offers more opportunities to deliver value through process improvements, efficiencies and improved supplier relationships. Centralising and standardising procurement practices, while increasing visibility, afforded Irwin’s team the ability to rationalise the supply base and gain leverage with suppliers where practical. The shift allowed Irwin to emphasise the importance of the procurement
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HOLCIM (Australia) PTY LIMITED (Holcim Australia)
department and encourage business units to view the procurement team as a powerful tool at their disposal. In the last few years the business has increased its focus on sustainable procurement, including the kind of suppliers it works with and how it works with them. Today sustainable procurement is integrated into Holcim
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Australia’s and New Zealand’s dayto-day operations and Irwin says it’s always looking for ways to identify and manage risks in the supply chain – whether that be around health and safety, social and corporate responsibility, or the environment. Lessons learnt during Australian implementation greatly assisted when integrating Holcim’s
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Holcim - Kelly Irwin and Team
New Zealand business into its centralised procurement approach. Again, engagement was key as the business was different and had different pain points. “Now that we’ve got centralised
control, standardised data coding and more granular visibility we’re in a much stronger position to make informed procurement decisions and back them with solid numbers,” says Irwin.
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HIGH-LEVEL INFRASTRUCTURE WITH GLOBAL PRESENCE Written by Mateo Rafael Tablado Produced by Steven Villalon Interviewee Daniel Melo, CEO of Andrade Gutierrez Peru and South LATAM
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Andrade Gutierrez SA, a bastion of infrastructure in Latin America, brings its standards and best operational, administrative and security practices to the world
F
ounded in 1948 in the State of Minas Gerais, Andrade Gutierrez is a Brazilian business group dedicated to infrastructure. It currently maintains global presence through its various divisions in more than 40 countries, being involved in various projects such as public works, concessions, PPPs and private works, totaling more than 900 deliveries throughout its almost 70 years.
The Group’s three business segments include: · AG Engineering · AG Investments · Global Structured Solutions (USA) Andrade Gutierrez likewise
actively participates in projects and businesses in Africa, Asia and Europe. The Group has been operating not only in Brazil but throughout the Americas for some time. 2017 marks a quarter century of uninterrupted operations in Peru, led by Daniel Melo, CEO of AG Peru and the Southern Cone. The seasoned executive has been working for the Group for 11 years now. He led the sales division in 2013 via structured projects and financing. In August 2015 he was appointed Executive Director of Andrade Gutierrez, Peru. “This company is very diversified
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in terms of its activities and its leaders. I specialized in creating structures as well as viable business and financing solutions,” says Melo.
Portfolio: diversity and magnitude
“We employ local labor. We have become a company that focuses on training local executives who now occupy almost all managerial positions” – Daniel Melo, CEO of Andrade Gutierrez Peru and South LATAM
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Andrade Gutierrez has been involved in numerous large projects, marking turning points wherever they participate. The following are among the most prominent projects: · The Brazil-Peru Interoceanic Highway, which runs across the center of South America, connecting the Pacific and Atlantic Oceans. Completed in 2011, this project’s financing and risk allocation were highly innovative for its time. Among the projects related to this work is the construction of Ollachea’s Via de Evitamiento highway and the
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continuous monitoring to assure proper road maintenance. “This project accounts for a third of the shareholding, in a consortium composed of three partners with equal shares that was formed at the time of bidding,” reveals the executive. · Construction of the largest seawater desalination plant for the mining sector, based on a long-term (27 years) BOT (BuildOperate-Transfer) model. AG carried out the investments for this project and runs its operation and
maintenance instead of charging a fee per cubic meter of water. · Refurbishment of Avenue Gambetta, in northern Lima, Peru. Completed in March 2014, the 28 km (17.4 miles) of roadwork was valued at US$185 million. · The Amazon Arena Stadium (Brazil), work entirely executed by AG worth US$260 million, completed in 2014. The stadium hosted several World Cup matches that year and was an ECCS European Steel Design Awards recipient. Four other participating stadiums were
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“Our goal is to be as efficient as possible. Our priority is not cost efficiency per se but finding solutions that dramatically streamline the project” – Daniel Melo, CEO of Andrade Gutierrez Peru and South LATAM
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built and refurbished in light of this event. They also all achieved LEED certification, the international mark of excellence for green building. · Olympic Park (Rio de Janeiro, Brazil): valued at US$130 million, where the biggest event of the 2016 Olympic Games was staged. Developed and realized by a consortium in which AG boasted a 33.3 percent share. · The Huaura - Sayan - Churin (Peru) Highway: boasting a 70 percent participation in this 98 km route that runs through the Andean region and whose contract value is approximately US$190 million.
Among the projects yet to be completed in which AG is actively participating are: · The Gambetta Tunnel: 960
meters (1,050 yards) covered and 2,400 meters (1.5 miles) of access ramps, where the second runway of the Jorge Chavez airport (Lima, Peru) will be built. The company has a 40 percent participation in a contract worth approximately US$235 million. Completion is expected by the end of 2016. · The Abreu de Lima National Steel Company (Venezuela): design, procurement, construction, installation and commissioning of a plant (Greenfield project) that produces hot rolled coils and heavy plates, including all aggregate plants (water treatment station, scrap repair plant, lime plant, gas separation plant, air compression plant, slag processing plant) and industrial services (system power supply, pipeline, aqueduct). 100 percent of the work is being executed by AG. To date it is 60 percent complete. Other projects in Brazil include the Belo Monte Hydroelectric Plant, the Railway Branch in Southeast Para, and the expansion of Line 5 of the São Paulo Metro, among others.
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Business Structure
The company is divided into seven business units that serve its customers in the public, Public-Private-Partnerships (PPP) and private sectors: Regional business units · Brazil · Europe, Asia, Africa (based in Lisbon) · Latin America (based in Lima) Specialized units · Energy, Oil & Gas · Private Clients · Structured Business
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And a Construction Unit that’s fully focused on contract enforcement and compliance. Strengths: PPP and concessions
Grupo Andrade Gutierrez specifically focuses on the Americas. Its greatest attribute is its business vision, one that looks for projects where they can not only guarantee repayment of financing but ensure completion and proper project operation. For AG, project launch following completion also assures a return on investment.
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Public-Private Partnerships (PPPs) and concessions are the types of projects that can provide these guarantees. Leading-edge corporate culture
Since 2014, the AG Group has undergone major changes to its corporate management and structure through measures such as a new model of corporate governance, improvement of its Compliance and Integrity Program, professionalisation of management processes, implementation of
SAP and Management Center, among other developments. The following year, the company underwent an intense strategic formalization process, following the best market practices. Moreover, the Group has five Support Committees (Finance, Procurement, People and Management, Strategy and Audit), and each includes three Board members. Global Supply Management
AG’s supply area was centralized
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in 2014 through the creation of Global Supply Management (GSM). AG Engineering thus improved the supplier certification process with the intention of mitigating risks. AG Engineering bases its corporate governance on policies that set the basic guidelines to ensure the viability and completion of not only the project but its strategic objectives as well. The GSM spearheaded the supplier certification process implemented in 2015. It is backed by an evaluation process that monitors the performance of each supplier. Providers who do not meet the required minimum
benchmarks may submit an Action Plan—that will be evaluated and monitored by AG Engineering— in the hopes of being included in AG’s list of strategic suppliers. Human Resources and the AG Trainee Program
AG’s talent pool is regulated by the Superintendency of People and Management. Moreover, employee interactions are driven by the Group’s Code of Conduct which has established guidelines for managing human resources. Motivated by company internationalization, the Group encourages staff development by subsidising up to 50 percent of
Daniel Melo, CEO of
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graduate and language studies. AG also provides tools and training courses as well as personal and professional improvement training for its entire staff via classroom and online classes. For its part, the AG International Trainee Program trains young professionals to know the company as a whole in order that they identify with company values and contribute to its vision for the future. Following the ten month program, trainees
get the chance to get hands-on experience in corporate settings and business units in Portugal, Africa and Latin America. Corporate Social Responsibility
AG’s Social Responsibility Guidelines are based on International Labour Organization (ILO) conventions and recommendations, which define the performance levels expected from business processes. AG Engineering refers to
“The goals we set for 2015-2017 proposed strategies that are currently being implemented via multidisciplinary teams” – Daniel Melo, CEO of Andrade Gutierrez Peru and South LATAM
the Environmental Legislation Compliance Checklist (ELCC) when conducting self-mandated bi-annual quality, environment, workplace health and safety audits to ensure that all its works and joint ventures comply with current legislation. Undertakings such as the Huaura-Sayan-Tingo Bridge Road Refurbishment and Improvement Project supply, in coordination with communities, the residents of nearby towns with reusable PPE (personal
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protection equipment) materials. A future and growth according to the environment
For the next two years, AG will be overseeing projects totaling US$6 billion in Latin America (excluding Brazil) in the transport, water, urban mobility, energy, oil and gas sectors, focusing on Peru, Colombia, Mexico and Argentina. Given the ever changing global macroeconomic environment,
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company goals are set according to a three-year plan (2015-2017) as short-term planning allows for greater adaptability. The company recently established strategic partnerships with a major player in the rolling stock market, a project development technologist within the refining sector, and an integrated solutions water treatment and distribution specialist. Agreements made with these will strengthen the group’s position
in the region and allow them to provide the market’s highest quality and technologically advanced complete infrastructure solutions. “In addition to continuing to accommodate public-sector customers, we are betting strongly on growth in the private sector where opportunities steadily continue to increase,” concludes Melo.
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