TsOtrPuc6tion
Con trends of 2016
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May 2016
Steeling the march
Forging growth in a slow market
Safety on site
With the iAuditor app
CEMENTING
A LEGACY
AL SAFWA CEMENT COMPANY
IN THIS ISSUE
EDITOR’S COMMENT
H E L L O A N D W E L C O M E to the May 2016
issue of Construction Global. Our cover feature this month is Al Safwa Cement Company, which has undergone a huge procurement overhaul in order to streamline its operations and become a trusted cement supplier in its industry. Also included is a profile of Schindler Group, global provider of lifts and escalators, and we revisit the massive Dubai Parks and Resorts project. Featured too is an essay from Kantox CEO Philippe Gelis who discusses how steel industry growth can be forged in a slow market; an overview of SafetyCulture’s ground-breaking iAuditor app; and our list this month is the top six current construction trends.
We do hope you enjoy the issue, and please tweet your feedback to @ConstructionGL and @NellWalkerMG
Nell Walker Editor nell.walker@bizclikmedia.com
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CONTENTS
Features
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TECHNOLOGY Safety first
6 MANAGEMENT & PLANNING Steeling the march 4
May 2016
TOP SIX Current construction trends
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Company Profiles MIDDLE EAST 26 Al Safwa Cement Company (ASCC) 38 Kifah Precast Company 48 Schindler Middle-East 60 Dubai Parks and Resorts
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Al Safwa Cement Company (ASCC)
134
Kifah Precast Company
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USA 104 HuntAustin Joint Venture - Phoenix Sky Harbor International Airport 122 KPRS 134 Sacramento Regional County Sanitation District EchoWater Project
S acramento Regional County Sanitation District EchoWater Project
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S chindler Middle-East
146 North Texas Water District - Stewart Creek Wastewater Treatment Plant
AUSTRALIA 158 Civmec 176 Gateway WA
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Dubai Parks and Resorts
158
Civmec
LATIN AMERICA 190 LATCO SA 204 Grupo Empresarial Lafuente
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Steeling the march:
Forging growth in a slow market Written by: Philippe Gelis, CEO of Kantox
THE GLOBAL STEEL industry has made the headlines for all the wrong reasons in recent years. A collapse in prices as a result of oversupply has meant slow or stagnant growth for many manufacturing firms. While several industry commentators have pointed to an imminent recovery for the sector, the UK Markit/CIPS manufacturing Purchasing Managers’ Index (PMI) revealed Eurozone manufacturing activity to have expanded at its 6
May 2016
weakest pace for a year. With a Brexit vote looming, the potential for even more volatility is concerning investors, fearful of additional negative impact on the pound. However, despite this ostensibly bleak picture, the industry is – in many ways – at the forefront of technological change. From automation to embracing the Internet of Things (IoT) in manufacture, supply chain management and distribution, business models in
Info link
MANAGEMENT / PLANNING
this sector are changing rapidly. Mettalis is one such company embracing new technologies and operating approaches to help drive growth in a slow industry. Diversify to dominate Founded in 2013, Mettalis has expanded its business activities
from buying and selling into recycling, with plans to move into metal manufacturing in the pipeline. The company began its recycling operations by acquiring the UK interests of the Dutch firm Van Daalen, a company fifteen times its size. In two years, Mettalis’ turnover increased from £1 million to £55 million and daily volumes have rocketed from 2,000 tonnes to 19,000 tonnes of metal. Humayun Sheikh, CEO of Mettalis, says: “The metal recycling sector is
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MANAGEMENT/PLANNING very old and it has still not moved into the 21st century. Despite this, we have been determined to be at the forefront of change, trying to be more modular, more localised and greener. We have found that the more entrepreneurial you are, the more agile you are, the stronger you are. That is how we have managed to grow the business from almost nothing two years ago to a £55 million turnover now.” In addition to this diversification, Mettalis has also invested in domestic production facilities to increase its selfsufficiency. The lack of processors in the UK market means that although scrap is still generated in huge
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quantities, it is still largely exported, which reduces production outputs. Hedging against global volatility Similar to other companies within the sector however, Mettalis has had to battle extreme currency volatility risk in recent years. Mettalis’ business model means that shifting commodity prices have a deep and direct impact – the sheer volatility of commodity prices coupled with Mettalis’ high turnover of commodity purchases puts the company at significant risk. The main danger to this business model, is that a failure to effectively manage commodity risk could end up
FORGING GROWTH IN A SLOW MARKET
strangling liquidity. The finance and leadership has to work hard to ensure that this fluctuating exchange rate is not allowed to eat into profit margins. “Currency exchange impacts us in a massive way”, says Mohammed Rizwan, Mettalis CFO. “There are three key factors in our trading, one of course is the metal market, the second is trade and the third is currency which plays a major role.” A calculated approach to risk While many of its competitors have taken a ‘batten down the hatches’ approach during turbulent times, Mettalis credits its growth with its strategy to take calculated risks – making active
investments to fuel growth. The challenging market conditions prompted Mettalis to seek help from an external FX partner. Rizwan’s first port of call for assistance in hedging more effectively against currency risk was the traditional banks and brokers. However, he soon became frustrated with the complexity of their offerings and explanations, as well as the complex fines and fees associated with each plan. Wary of the practice of ‘dumping’ – whereby businesses are offered unbeatable initial rates to lure them in, which are then quietly ramped up for future transactions – Rizwan was determined to find a solution which gave him transparent access to the live mid-market rate. The growth of FinTech – technology
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MANAGEMENT/PLANNING driven firms seeking to challenge and disrupt the (often stagnant) status quo – and associated rise of online benchmarking services made it easy for Rizwan to compare bank, broker and platform rates. This discovery prompted him to look beyond traditional providers, to consider alternative options. The team now works with Kantox, a FinTech firm which provides the on-demand and detailed transparency Rizwan and his team were seeking. They were also drawn to Kantox’s regular pricing scheme – the technology applies the same commission to all companies, no
matter their size. This means that fast growing company Mettalis has not suffered as transaction volumes have grown. This not only builds trust, but brings peace of mind for Rizwan, without the need to check what Mettalis has been charged in each transaction. They are now able to depend on expert FX advice, freeing up the CFO and finance team to focus on longer term, strategic business priorities, rather than getting pulled into currency ‘firefighting’. Defining a clear FX strategy Mettalis’s chief asset - steel Philippe Gelis, CEO of Kantox
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FORGING GROWTH IN A SLOW MARKET
and recycled metal - is traded internationally in US dollars. With this in mind, the company’s operations depend on selling dollars to buy UK pounds. Needless to say, when the British pound is strong, this has a negative impact once profits are converted into home currency. Working with Kantox, Mettalis is able to take advantage of sterling lows, implementing flexible forward contracts to allow the team to lock in a favourable exchange rate and make transactions at any time during the year. This level of sophistication has hinged on the ability of the entire financial department to monitor FX exposure at a glance on Kantox’s real-time dashboard, allowing them to set currency alerts and automatic notifications when the currency exchange reaches either risky or optimum levels. Leading the way with tech adoption The fast and efficient flow of goods is import to any internationally exporting company, if they are to remain competitive - not least for those in the metal sector. One fear that Rizwan had when seeking support from a
non-traditional FX platform, was that certain systems might not be in place to ensure this flow of goods; namely the ability to pay suppliers through the platform directly and trace it through the SWIFT message. However, relying on a FinTech alternative provider proved beneficial to Mettalis here too. While banks only offer SWIFT messaging on request, Kantox adds the SWIFT message to all its clients’ transfers, free of charge. This code allows the Mettalis team to fully track of the status of payments at any time during the process, and serves as proof of payment to their providers, which in most cases speeds up the delivery of the goods. The Mettalis team has not been constrained by ‘the way things have always been done’, in one of the UK’s oldest industries, but has embraced new approaches to thrive in a difficult market. By refusing to accept the solutions offered by traditional foreign exchange providers, Mettalis has found transparent, flexible technology that is able to support the company through the turbulent market conditions.
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Safety first
SafetyCulture’s CEO Luke Anear tells Construction Global about the iAuditor app’s vast impact on the construction industry Writ t e n by: N E LL WA LK E R
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T E C H N O L O G Y & E Q U I SPA M F E TE YN FIT RST
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TECHNOLOGY & EQUIPMENT LUKE ANEAR FOUNDED SafetyCulture in 2004, building on a traditional construction-based consultancy business from inception until 2012, at which point the iAuditor app was released. Anear, with years of private investigation work behind him, had witnessed workers being injured on construction sites over and over again: “After being involved in around 2,500 investigations I realised I was in a reactive role, and I could do more in a proactive sense,” he says. “That was the catalyst for me to start SafetyCulture, and later, iAuditor.” In 2011, Anear started to see the penetration of smartphones reach non-technical construction workers – such as bricklayers and carpenters – and realised there was a gap in the market which he filled with an original idea. “The criteria for iAuditor was the concept that the entire industry is reactive,” Anear explains. “If someone gets hurt or dies on site then legislation gets written to prevent it from happening again, and then companies will produce procedures, policies, and paperwork to ensure everyone on site is compliant. We stepped back and asked ‘how can we 14
May 2016
provide a solution that isn’t reacting to legislation, but is proactively inspiring front-line people to work better?’ “Checklists have been used successfully in the aviation and medicine industries since the 1930s, and the concept filtered down into anywhere that needed safety standards or quality that needs to be maintained. We took that idea as a starting point and went forward with a criteria for what became iAuditor.” Anear wanted to build something flexible enough to have a collaborative component, including a public library
SAFETY FIRST
“The criteria for iAuditor was the concept that the entire industry is reactive”
in which users could share checklists: “It had to be flexible, collaborative, and free, so any worker at any site in the world could get access to it.” The building of the initial app took four months, and Anear admits it was extremely basic at that point, having been designed by himself and one engineer. iAuditor was released in 2012 and was downloaded to 1,200 devices in the first week – now, there are teams working on and adapting the technology all the time, constantly innovating and updating, and February 2016 saw a million 15
TECHNOLOGY & EQUIPMENT downloads occur for the first time. “There’s now 60,000 different inspection forms available on the app, and we’re seeing so much data coming in that we’re getting insights we didn’t previously have access to. We’re seeing data for how many times people should be doing walkthroughs for construction sites; they can use iAuditor to go through hazards, what’s happening that day, and they pass it around between workers and sign off with everyone able to use one finger to prove that they’ve gone through the checks.” According to Anear, the real testament to iAuditor’s success is its ease of use; people with no
“iAuditor allows a level of ease you don’t normally get when someone starts using a new tool” 16
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technical background are able to build processes, create a digital workflow – or find one within the public library – and start using it to maintain safety and quality: “The company is now based entirely around iAuditor; the tech side has taken over SafetyCulture,” Anear says. “The plan was to create a simple checklist app, but in reality it’s something that provides real-time visibility. We didn’t realise that at the time. The fact that people who don’t have access to an IT team or a budget could start using iAuditor meant that we were empowering front-line people who previously had no say in what systems were adopted. This created a level of engagement from the front-line workers that we and our customers had never seen before, and now they’re the ones who are creating and improving the systems and coming up with new ideas. “It’s a very powerful cultural change, the concept of the average worker not having to get ideas from upper management, but being able to implement them themselves. iAuditor allows a level of ease you don’t normally get when someone starts using a new tool.”
SAFETY FIRST
Luke Anear, CEO of SafetyCulture
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TOP SIX
TOP SIX
Current construction trends Here are some of Construction Global’s picks for trends and innovations within the industry Written by: Nell Walker
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TOP SIX
01
3D PRINTING
While additive manufacturing isn’t entirely new, its rapidly-growing use in the construction industry is. The advantages of this method for printing infrastructure such as concrete is quick construction, low cost, and a great deal less waste being produced. 3D printing could play a huge role in the production of low-cost housing in impoverished and war-torn areas; only the necessary raw materials are produced for such products, and 3D printer ‘ink’ can be created with recycled plastic. 3D printing of buildings is also well on its way to being used for off-planet habitats on Mars and the Moon, to the extent that NASA plans to use sintering techniques on lunar dust, enabling construction without the difficult transportation of materials from Earth.
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CURRENT CONSTRUCTION TRENDS
02
GREEN BUILDING
While sustainability is an old concept, the features and technology which allow it to evolve are constantly growing apace. Solar panels and plumbing fixtures which save water, once costly and as such considered a luxury, are affordable and widely-used. Now, there are many renewable energy options for new builds, and a great deal of scope for the use of recycled products. The concept of green building has moved on from being merely stylish to necessary and socially responsible, and materials are judged on their levels of sustainability through building certification programs.
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TTOOPP S1I0X
03 APPS Apps are now playing an integral role in the construction industry, ensuring instantaneous access to shared information, whether on the floor or within management. Safety apps like iAuditor are on the rise, lessening on-site accidents globally, and now, drones are being used to survey sites from above, allowing previously unseen views and the production of accurate 3D area models. One of the most popular uses of apps in this industry is Building Information Modelling, which is a full digital representation of any facility. It is shared software to which any given worker can have access, ensuring total visibility of operations. 22
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04
MICRO-BUILDINGS
The tiny house movement advocates the concept of living simply in a small space of under 1000 square feet. In America specifically, 76 percent of homeowners live from wage to wage to pay for the roof over their heads, leading to a cycle of debt. 78 percent of tiny home owners are able to own their houses either outright or within a short space of time, and the concept is made further attractive by the ideals of selfsufficiency and environmental consciousness the movement promotes.
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05
CONCRETE ROOFING TILES
BoralPure Smog-Eating Tiles remove nitrogen oxide from the atmosphere, improving the quality of the immediate environment. They contain the photocatalyst titanium dioxide, oxidising the vehicle-emitted poison. The harmless precipitate left behind in the chemical reaction washes away in the rain, and the UV light created naturally by this technology helps break down organic substances that occur on roofs. If the tiles ever require removal, they can be recycled for new structures or railways.
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CURRENT CONSTRUCTION TRENDS
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POLYASPARTIC COATINGS
Polyaspartic coatings can be used on metal and concrete, ensuring damage resistance against UV light, chemicals, and general abrasion. The product ensures good colour stability and ease of cleaning, with an ultra-quick curing time. Polyaspartic coatings can be applied at a wide range of temperatures, allowing for a broader application time and making it perfect for larger commercial projects. The coatings are created using raw materials from Bayer MaterialScience, and ensure improved productivity across the board.
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Cementi
ing the supply chain Written by: Nell Walker
Produced by: Heykel Ouni 27
A L S A F WA C E M E N T C O M PA N Y ( A S C C )
Riad Bestani, Supply Chain Director of Alsafwa Cement, describes the positive effect his procurement overhaul has had on the prestigious company
A
2008
The year that ASCC was founded
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lsafwa is a joint venture between four partners, with half of them private and half public, the former being two industrial partners – LafargeHolcim, the world leader in the building materials industry, and El Khayyat, a red brick manufacturer. Based in Saudi Arabia, this cluster of companies has led to Alsafwa becoming a trusted and respected company across the GCC, to the point that it plans to double capacity by 2017. Riad Bestani, the CPO of Alsafwa’s cement arm, joined the company in 2013 after many years of procurement experience. This familiarity with the industry means that he is well aware of the safety issues of providing cement in a region like Saudi Arabia, even outside the company’s property. “Road safety is a real challenge in this part of the world,” he says, “and Alsafwa people need to drive back and forth more than 300km per day. One of the things we’ve done to ensure the best health and safety conditions for our staff is reducing the travelling hazards for them by
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providing buses, in addition to adequate accommodation onsite for the majority of plant staff. Our plant is far from town, so the least we can do is reduce risks by making sure our employees get back home safe and sound. ” The processes involved in creating cement – grinding stone, burning it (up to 1400 degrees Celsius) until it’s liquefied, and grinding again into a powder – involves behaviors and practices that can be dangerous if they are not properly anticipated and secured.
The company ensures strict control of every situation to guarantee safety procedures are followed. “The quarry area we have onsite has a very tough mountain topography, and working on it is very complex,” Bestani explains. “We need to drill, to blast materials, vehicles need to go up and down, and we need excavators to ensure full control over falling rocks. Geomining experts that have visited our quarry warned us on the high numbers of hazards that have to be monitored and anticipated. We have
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As a leader in fabrication, maintenance and erection service of heavy industrial plants, INTERMAINT has the human , technical resources , the depth of know-how and experience to help clients achieve success domestically and overseas. Address: P.O.Box 325591 Riyadh 11371 | Tel: +966 11 47 622 30 | Fax: + 966 11 29 16 798. | Email: hesham@intermaint.net | Website: www.intermaint.net
WORN THE REST, NOW USE THE BEST Aceros y Suministros, founded in 1951, is a company specialized in manufacturing and supplying steel wear parts for the cement &mining industries. Offering impact, abrasion, corrosion and high temperature resistant steels, to suit different working conditions and processes such as crushing, grinding, pyroprocessing and material handling. Our products are of the highest quality and meet the most demanding technical requirements.
Contact: www.acerosysuministros.com cement@acerosysuministros.com
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strict safety exigencies towards our suppliers working on-site, and our employees make sure health and safety requirements are being fulfilled. “We have to be very careful, so we assess suppliers to ensure they understand our safety procedures. We train them, and we refresh that training regularly. We make checks and audits across every level, and really these are basic requirements. Lives are at stake. When a safety problem appears, everyone is empowered to stop it and report it for deep analysis of its root causes. We have company-wide reviews with health and safety committees which makes sure we’re implementing the action plans.” When Bestani joined the company, one of his main missions was to create a proper process for procurement activity and build a structured procurement organisation. Due to a growing market and a high number of job opportunities, one challenge in Saudi Arabia – and across the GCC – is employees’ tendency to quickly move on, especially the younger generation, making it challenging to acquire and retain the right staff. Bestani immediately brought on board new people for his team composed of trusted connections he had made during his career, and he ensured the existing team was properly positioned for tasks they fitted into. “It’s about networking, putting together the right organisation, delegating to people in
“We are one of the very few, if not the only company to be using alternative fuel in the cement industry” – Riad Bestani, Supply Chain Director of Alsafwa Cement
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A L S A F WA C E M E N T C O M PA N Y ( A S C C )
300
The number of ASCC employees
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key areas, and building trust with people you believe can bring you the performance. The procurement team was split into three groups – industrial sourcing, general services sourcing, and performance activities, which give you the performance and evaluation of the way you’re managing your supply chain. We track a number of KPIs among the suppliers, assessing their performance, cost reduction for main strategic suppliers, and lead time between requests and orders as well as spend coverage.” Bestani spent two years implementing a task force composed of people from main interacting departments of the company – plant, finance, and IT – making sure they worked intelligently and understood what their individual responsibilities were. It has meant enormous progress in terms of procurement, but it is a continuous task to keep people trained and engaged in their job role. Bestani explains: “I had to drive far-reaching changes. It’s not easy to accept that there are hurdles to overcome and a lot of convincing that
MIDDLE EAST
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needed to happen, but in the end it was worth the effort, and it’s been quite positive with results translating to some big savings. Saudi having such a high employee turnover is challenging, so you have to stick with your managers to understand how to overcome the situation and to retain the talent.” Saudisation is being heavily promoted in the country, and involves retaining as much
business as possible in the Kingdom itself. The rule in Saudi is that if a foreign company wants to invest, it has to be making a partnership with a local company. It is also required that investors procure obligations depending on the sector – for cement, there has to be a minimum level of Saudisation. “HR, for example, needs to be Saudi national,” Bestani says. “The minimum general Saudisation in our sector needs to be 12 percent, and we have 49 percent
Efficient Operation Through Quality Lubrication
C OM N ISDTDRLUEC ET A IO SN T
as of today. It gives us all kinds of advantages; there’s a sort of mileage card and the more Saudi nationals you have on board, the more you can get loans and subsidies from banks and the government. It’s a great incentive.” The company also tries hard to increase female employees number into work, since national law allows it only in specific areas. Alsafwa hired its first female employee in 2010, and Bestani is pleased to have contributed in his department last year with the first female in procurement: “I’m proud of being able to do that, because it’s challenging, since women have a long way to go to gain access to the job market. We hire most of them into entry positions and train them up for better opportunities later on.” The cement business in Saudi Arabia is enormous; the nation produces 50-60 million tons a year, compared with the US which creates 75 million tons with ten times the population. Most of the companies that produce it are 20-30 years old, and the way Alsafwa’s cement business differentiates itself is through innovation and sustainability. “We focus a lot on innovative solutions. Oil is becoming a scarcer commodity, so we’re looking at alternative fuels, and we’re working with municipalities and utilities companies who are eager to develop more environmentally-friendly use of energy through waste management
“Saudi having such a high employee turnover is challenging, so you have to stick with your managers to understand how to overcome the situation” – Riad Bestani, Supply Chain Director of Alsafwa Cement
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A L S A F WA C E M E N T C O M PA N Y ( A S C C )
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and recycling initiatives. This is one of the great advantages the LafargeHolcim group has in terms of developing solutions. “Its highly state-of-the-art research center in Lyon, France, allows different business units of the group around the world to benefit from its knowledge and experts in key practices. However, the move is very slow here, and it takes a while to get approvals. It requires a lot of involvement, patience, and commitment to achieve what we want to. We are one of the very few, if not the only company to be using alternative fuel in the cement industry.” The company’s motto is ‘think global, act local’, and Bestani is keen to stand out from other Saudi businesses with Alsafwa’s unique approach: “The support we get from the group in terms of worldwide supplier panel and Best Cost Countries solutions – a platform based in China helping to source alternatively to European brands – is definitely giving us a step ahead compared to competition, and we always need to keep that advantage. “In two years’ time, we are not going to be doing procurement the same way. Procurement evolves with the needs, and sustainability will change with it. This procurement department wasn’t always making use of all these advantages, and I’ve had to adapt it to bring it up-to-date. Business isn’t static; we’ll be improving all the time.”
500
The amount of revenue produced by
ASCC
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Concrete e
Written by: Nell Walker Pro
efficiency
oduced by: Jordan Platten
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K I FA H P R E C A S T C O M PA N Y
Kifah Precast Company’s General Manager, José Neto, describes the ways in which he has overhauled the company’s business model in order to massively increase productivity
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T
he popularity of precast concrete can be attributed to many attractive features: short construction time, high quality, durable and flexible products, customisable aesthetics, and good economic value. Kifah Precast Company uses its high-end technology to create architectural cladding, structural precast units, skeleton products, wall panels, hollow core slabs, and auxiliary elements. José Neto, Kifah Precast Company’s General Manager, has worked hard to ensure processes run as efficiently as possible since he began with the
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company over two years ago. “The company was set up in 2009 on the whim of a construction boom,” Neto explains. “And in an effort to diversify the investments of the holding company, it was decided to invest in a precast production facility. This decision foresaw an enhancement of the construction capabilities within the group. I joined the Kifah Precast Company as a Business Development Manager, and after about 18 months it was proposed that I become the
General Manager. My main initial focus was the enhancement of the sales process and to increase our exposure to the Saudi market.” When exploring Kifah Precast Company’s sales processes, Neto was forced to address the changeable nature of business in Saudi Arabia: “You have to work around a high employee turnover,” he says. “The only thing that had to be permanent in the company was a process and a culture, regardless of who came and went. That’s the one standard thing that has to be solid. There was
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a requirement of process, in which you can monitor and modify, to continuously improve it.” “Looking into the sales process, there was a clear marketing strategy in place, which needed to be implemented and followed. The first order of work was to generate a series of traceable steps from inception to the materialisation of a sale. Not just that, but the constant monitoring of all steps in between, from first meeting a client to signing a contract. “Once we had a steady in-flow of business, the second action was to focus on the control of operations. This was only possible to achieve through the joint efforts of the all the operational departments and their respective managers. There was a necessary cultural change to adopt one integrated system of monitoring all major steps in the operational process. This required the internal promotion of a different MO, and the introduction of a cloud computing environment. The outcome of the initiative was a completely integrated, real-time data generation, which enabled performance monitoring and better decision-making with reliable figures.” Strictly monitoring the company’s processes ensures that Al Kifah is able to stay ahead in a very competitive market: “We’re aiming to be the most efficient provider – not necessarily
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“I can optimistically say that Kifah Precast Company is geared for solid growth with a strong position market position” – José Neto, General Manager at Kifah Precast Company
the cheapest, but certainly the most efficient. Currently it is possible to gauge every single step in the operation, and know exactly what the estimated cost will be. Therefore, ahead of time we are in full control whether it’s a project that we should enter or not. This level of control and accuracy is, in a way, unique to the environment, so it allows us to stay ahead in such a competitive market.” Neto defines the products themselves as highly-engineered commodities. As the product sold is precast concrete, it cannot be easily differentiated from elements made by the competition. What makes customers flock to Al Kifah is the reliability and service offered. Al Kifah is careful with its suppliers, knowing that it requires reliability to maintain its positive reputation. The main materials the company requires are cement, sand, aggregate, and steel: “The process by which we accept a
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vendor for these raw materials is by forming a vendor approval committee, with company employees,” says Neto. “This brings out all possible wrongdoings in the procurement side. I have direct contact with the suppliers, which gives us a direct link to the supply chain. “Our suppliers add a lot of
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value to the organization, since they allow our products to be produced faster, better, and assembled in a more efficient way. The approval process of our suppliers, ends with a direct link to the general management. This ensures that the product being supplied is
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clearly beneficial to us.” According to Neto, “to keep suppliers satisfied you need to make your payments on time,” but the relationships with clients require a little more work to ensure fulfilment: “We consider clients even if we haven’t signed a contract. The relationship between our Sales and Marketing team and the clients are natural to the region, and our experienced sales engineers who promote our company, our capabilities, allow a clear vision to the client where we stand in the market. “Given that our product is sold in
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a mature and competitive market, contracts can only be signed with a clear commercial advantage to the client. Once a business relationship is stablished, repeated business only happens if we deliver on our promise. If you’ve done business with us once, you will do it again if you’re satisfied regardless of the competition. So we focus on operational efficiency, which is the sole KPI that generates return business.” Kifah Precast Company is currently working on a high-end residential beach villa development on the shores of Khobar, a
project with the MOD, and a large substation development for the Saudi Electricity Company: “These will be industrial buildings in the outskirts of Riyadh,” Neto explains. “Lastly, there is a very large housing development for Saudi Aramco in which we are working on a part of it. The current outlook for the future is showing signs on clear improvement, and since all the precautionary measures have been taken, I can optimistically say that Kifah Precast Company is geared for solid growth with a strong position market position.”
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Escalating innovation Written by: Alice Young Produced by: Craig Daniels
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SCHINDLER MIDDLE-EAST
Having grown from a company with almost 150 years of experience, Schindler Middle East is poised to dominate its target markets backed up by a number of innovations
F
or almost 150 years, Swissbased Schindler has been a world leader for elevators, escalators and moving walks. With a reach that spans roughly 100 countries and over 1,000 offices, the company has operated in the MENA region for seven years and previously with distributors. As skyscrapers were erected all across the region in the wake of the oil boom, Schindler Middle East was perfectly positioned to deliver its long-standing expertise. Far from complacent, the company is focused on fine-tuning its competitive strategy, expanding territorially and developing its talent base.
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Operations Schindler’s remit covers the manufacture, installation, and servicing of elevators, escalators and moving walks, as well as the added ability to modernise legacy installations. As well as delivering the most high-tech engineering in the industry, the company also specialises in providing building transit solutions in line with the latest safety and reliability standards. Through a series of offices, distributors, warehouses and affiliates, Schindler Middle East has operations in Kuwait, Iraq, Bahrain, Egypt, Lebanon, Qatar, Saudi Arabia, UAE, Iran, Oman, and Jordan. All told, the region is served by seven main branches and six distributors, as well as training centres in Jeddah and Dubai. In order to ensure that this offering consistently delivers for customers, the company has a strong improvement programme in place, which brings together all aspects of its operations, spearheaded by the company’s R&D department.
Matteo Napoli, UAE Managing Director explains: “We have a culture of continuous improvement - we never stop looking for improvements to our operations, our processes, and our products. Mostly we are delivering input related to the field in order to provide continuous feedback on the process, material, and tools so that these can be improved and we can bring more innovation. “Sending information back to our headquarters and every branch in each territory makes us aware of these improvements. We value customer feedback because it pushes us to continuously improve our operations.” Schindler is also in the process of further aligning its distribution channels to more closely meet the needs of its customer base. Not only does a distributor need to make economic sense for the company, it also needs to meet the company’s stringent standards, which includes a particular focus on health and safety.
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Gulf Test Safety Consultancies P.O Box 133143, AbuDhabi, United Arab Emirates T: +971 2 5575244 | F: +971 2 5575883 P.O Box 184518, Dubai, United Arab Emirates T: +971 4 273 4038 | F: +971 4 273 4039
Gulf Test is currently providing Third party Inspection services of Elevators, Escalators & Loose lifting gear to Schindler UAE. GTS Third Party Inspection services are accredited by Dubai Accreditation Centre (DAC, ILAC Recognized) and ENAS. EHS training services provided by GTS are approved by ACTVET and accredited by NEBOSH, IOSH, NASP, EFR UK, SAIA USA. GTS is approved by AD EHS Centre as Grade A, EHS Consultant for the Development and Implementation of EHSMS. Mobile: +971 52 909 7149 | Web Site: www.gulftest.org | Email: sales@gulftest.org
Your imagination our design Specialist manufacturers of components and fixtures to enhance the elevator appearance inside and out, Dewhurst design and develop products that meet the strict requirements of architects, consultants and property owners.
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Sales Director Middle East
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Dewhurst UK Manufacturing Ltd Unit 9, Hampton Business Park Hampton Road West, Feltham TW13 6DB United Kingdom UK +44 20 8744 8200
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Philippe Boue Managing Director Schindler Middle East Philippe has been working for Schindler for the last 18 years and has served Schindler organisation in multiple roles in France, China and lately in Japan. At his current position Philippe leads the Middle East Region. w w w. s c h i n d l e r. c o m
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SCHINDLER MIDDLE-EAST
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‘The Solar Impulse project aims to develop long-range, solar powered aircraft; 2015 saw the longest solar powered flight in history between Abu Dhabi and Hawaii’ Talent management Schindler’s industry necessitates that its 3,000 Middle East employees are not only well-trained in health and safety measures, but also a variety of essential technical skills, which is why the company has developed a robust talent management programme. Alongside its holistic training protocols, Schindler also enables its employees to progress to new levels of responsibility. Alongside pathways to senior management, members of the workforce are also able to develop their expertise across the company and specialise in a variety of fields. Philippe Boue, Schindler’s Middle East Managing Director explains: “Our business is a
people business, especially when it comes to maintenance. We developed management systems to make sure that our field technicians are safe and that they live the values of our company.” He adds that Schindler combines its years of experience with the latest best practices: “We make a distinction between technical training and general training. Everything related to technical training is done in house. We have more almost 150 years of history, expertise, and experience that is passed on in training courses but when it comes to new innovations or general training we use a mix of in-house and external. When it comes to training for our leaders and senior
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SCHINDLER MIDDLE-EAST
Do Different
Akcura MetalCrafters is one of the top Elevator interior manufacturing companies in the UAE serving UAE and Middle East markets. Our speciality is Stainless steel, Wood, Glass, Stone, wall covering and Leather interiors for the Elevators and Escalators. Tel: +971 4 2592533 Email: info@akcurametalcrafters.com akcura@eim.ae www.akcurametalcrafters.com
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executives we may often source technical training from business schools to get fresh views.� The company still bears the surname of co-founder Robert Schindler and, as Napoli explains, retains a strong sense of identity: “This is very peculiar market compared to many others in the rest of the world, because we are all basically expatriates. One of the most important
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values is that we are a family company and we want employees to feel part of the Schindler family. “To attract, retain and motivate our employees we have a solid training plan, which encourages job rotation; we have a retention plan for loyal employees company with a rewards package.” Competitive strategy Many companies would become complacent with such an established and developed offering as Schindler, but it is keen to
remain in control of its destiny and therefore has a number of initiatives in place to keep ahead of its competition. An example of this is its willingness to utilise technology to facilitate communication; via its Field Link platform, engineers are able to utilise mobile technology to order parts and liaise with the company call centre. Napoli adds: “Technology is, of course, a clear success factor in our operations to differentiate our product and services from the competition. Lately, we have invested a lot in terms of digitalisation. “We have
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SCHINDLER MIDDLE-EAST
embraced the digital world and we now see technology as more than just tools or gadgets - we are really focused on embedding our processes to make us more efficient and more competitive.” The company, Boue explains, is also in the process of refining some of its supply chain processes in order to operate more efficiently: “We are also working on continuous improvement programs for our subcontractors in order to deliver the best quality for every single project.” Always keen to keep abreast of future technologies, Schindler Middle East is engaged in a number of innovative, high-profile ventures. Most prominent of these is the Solar Impulse project which aims to develop long-range, solar powered aircraft; 2015 saw
the longest solar powered flight in history between Abu Dhabi and Hawaii. The company has also been instrumental in the development of a solar powered elevator, which will enable businesses to seamlessly reduce their carbon footprints. Schindler Middle East has developed an already strong presence in a region that has experienced substantial growth, and it is set to continue on this trajectory. Having invested considerable time and resources in ensuring that the business is firmly in line with the demands of its customers, the company has been able to demonstrate to the world that it is home to some of the most talented and innovative engineers on the planet, and that its position is very much secured for years to come.
Number of employees
3,000
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Matteo Napoli Managing Director Schindler UAE Matteo Napoli holds a Master of Science (MSc) degree in Management, from the University “Politecnico di Milano”. In 2009, he joined Schindler in Italy. Since then, Matteo has served in various roles, starting with sales in Italy, then becoming the executive assistant to the Deputy CEO in Spain, to continue as a project manager in the UAE. He is currently the managing director of UAE.
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Park life
The Dubai Parks and Resorts project
Written by: LUCY DIXON Produced by: JORDAN PLATTEN
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In just a few months the doors will open on the Middle East’s most exciting and ambitious theme park resort
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hen you think of theme parks, you inevitably conjure up images of Mickey Mouse at Disney World or the King Kong ride at Universal Studios in Orlando. And Dubai Parks and Resorts is planning to join that prestigious handful of household names by creating a mustattend entertainment destination in the heart of the UAE. As Chief Technical Officer Matthew Priddy explains: “We have the ability to become a regional leader in the entertainment business. And as we develop the brand of Dubai Parks and Resorts, we can become one of the top three in the world. That’s the goal, we are all very committed to that. And we’ve made a very good start.” Priddy’s hand-picked team of 30 people boasts at least 500 years of theme park experience between them, each one of them a specialist in his or her field. Despite this degree of knowledge, the industry remains niche, and this allows Priddy and his team to ensure Matthew Priddy, Chief Technical Officer 62
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500
The number of combined years of experience the management team have in the theme park industry
“As we develop the brand of Dubai Parks and Resorts, we can become one of the top three in the world” – Matthew Priddy, Chief Technical Officer
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the highest quality at every point of logistical point of the operation. The Dubai Parks and Resorts project was developed in support of H.H. Sheikh Mohammed bin Rashid Al Maktoum’s vision for the tourism sector. “His Highness’s idea for 2020 involved bringing 20 million visitors,” Priddy explains. “He wanted to diversify the economy and create a family entertainment destination. Design for this project began in January 2013, and ground was broken in March that year. Throughout the remainder of 2013 and the majority or 2014, all the infrastructure was installed and erected, and by 2015 we were integrating the finishes, interiors, and finally the shows and rides themselves.” And having spent a morning touring the Dubai Parks and Resorts site, talking
‘H.H. Sheikh Mohammed bin Rashid Al Maktoum wants to diversify the economy and create a family entertainment destination’
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20m
The expected number of vistors to the region by 2020
to Priddy, who is responsible for design, engineering and production of shows and rides, it’s easy to see how the goal of becoming one of the top three theme park destination is going to be achieved. This ambitious and exciting destination is due to open in October this year, and the site comprises three theme parks – Legoland® Dubai (and Legoland ® Water Park), Bollywood ParksTM Dubai and motiongateTM Dubai, as well as the family oriented, Polynesian-themed LapitaTM Hotel, and a retail, dining and entertainment district called RiverlandTM Dubai. The facts and figures are impressive – the finished site is expecting 6.7 million visits in 2017 and will include over
Raed Kajoor Al Nuaimi, CEO w w w. d u b a i p a r k s a n d r e s o r t s . c o m
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100 rides and attractions, with 15,860 trees and 6,100 palms on 25 million square feet of land. The site still looks very much like a construction project – albeit one with a giant meatball (from the movie Cloudy with a Chance of Meatballs) gracing the site – with rides starting to be installed and the buildings that will house many of the attractions going up. Priddy says: “We started a little over three years ago, and back then this site was nothing but desert. In the last two years we have put in the underground utilities, and all primary infrastructure that goes with that, meaning sub stations, water treatment facilities and sewage plants.” With the majority of that background work complete now, the team is focussing on everything from cultivating plants in its nursery for the landscaped areas and moving the first Lego models into position to recruiting over 4,000 staff that will be needed in time for the grand opening. Dubai Parks and Resorts is located on the Sheikh Zayed Road, the main
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LIGHTING SYSTEM INTEGRATION
Supplier of all Show Lighting Equipment to Motiongate and Bollywood Theme Parks.
Architainment | Production Lighting | Special Eects | Parkwide Control Systems
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www.twitter.com/oeppd
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route between Dubai and Abu Dhabi. And it really is the perfect location, says Priddy. “It’s a terrific site because it is equidistant between the two international airports – Abu Dhabi and Dubai. It’s also 10 kilometres from new Al Maktoum airport, which is going to take on the existing traffic from some of the terminals at DXB. It is also close to the Expo 2020 site, so the city is going to grow in this direction. “What ends up happening, from what I’ve seen in my experience at Disney and Universal, is that all the support vendors and suppliers will spring up around the site and
15,850
The number of trees planted
6,100
The number of palms planted
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“We started a little over three years ago, and back then this site was nothing but desert” – Matthew Priddy, CTO
become an economic engine, driving growth in this direction.” The career experience that Priddy refers to includes a 20year career at Disney, including serving as Senior Vice President of Worldwide Production for Walt Disney Imagineering. As Priddy says: “My background really is the theatrical side of the theme park business.” Describing his current team and its role in the strategy of Dubai Parks and Resorts, Priddy says: “My group is an interesting mix of development and operations. We have procurement, contracts, media, R&D, control systems, creative,
facilities management, show and ride engineering, technical services. Our role is diverse, but the important thing for us is to ensure the guest experience. “A theme park and a resort is looking to offer a compelling experience that will make people want to come and it needs to be so compelling that they want to come back and next time they want to bring their friends and their grandparents and they want to stay longer. A longer stay equates to more per capita spending, and that’s the concept of an integrated resort – a theme park on its own, out of town, has a hard job with
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repeat visitation and length of stay. It doesn’t end up being a destination. Dubai Parks and Resorts is a destination. People will come here and stay for a day, two days, two and a half days.” And Priddy certainly isn’t afraid of any local competition, in fact, he welcomes it. “We are fortunate that we have additional theme parks springing up around the UAE. We don’t look at them as competition, we look at them
as another reason to drive the UAE, Dubai and Abu Dhabi as international destinations. We will probably partner with them at some point in the future, when it comes to things like safety standards and creating a theme park organisational mentality in the UAE.” Content is key for the success of any theme park and the team at Dubai Parks and Resorts has carefully selected a rich
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“A theme park and a resort is looking to offer a compelling experience that will make people want to come and it needs to be so compelling that they want to come back and next time they want to bring their friends and their grandparents and they want to stay longer.” – Matthew Priddy, CTO
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mix of attractions and experiences that will enable it to quickly become a leader in the region. Firstly, there is Bollywood ParksTM Dubai, a product that is unique. “Bollywood has never been done as a theme park before and there are millions of Bollywood fans within just a few hours of our site, so we are expecting to have to start the expansion from day one! Bollywood is such a large part of the culture here that making it part of the business plan was a no brainer.” And it is a very vibrant part of the overall Dubai Parks and Resorts offering – the stunning Rajmahal theatre is a striking setting for the 850-seat shows. Priddy adds: “The theatre is very high end in terms of its finishes and its technology for the shows. During the day it will operate as a typical theme park theatre with 20-minute shows. Then at night it turns into a Broadway-style theatre, with an
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extravagant production based on Kingdom of Dreams, with a cast and crew of 150 people. That’s a separate ticket, which is all part of our strategy to extend the length of stay. A visitor could spend the day at one of the parks, go to Riverland TM Dubai for lunch, go to the hotel for a rest if they are staying there, then go to Bollywood ParksTM Dubai in the evening for a meal at the high-end themed Indian restaurant, then go to the theatre show.� The second theme park is motiongateTM Dubai, which Priddy describes as a typical movie park as the attractions are based
150
The number of cast and crew for the production Kingdom of Dreams
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on films from Hollywood. But, he says, it is atypical as there are many different and diverse IPs at the park. He says: “In the states they would be seen as competitors but they are all together here.� The park will offer attractions based on Sony PictureStudios films (Hotel Transylvania, Ghostbusters and Zombieland, as well as Lionsgate (The
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‘The park will offer attractions based on Sony PictureStudios films (Hotel Transylvania, Ghostbusters and Zombieland, as well as Lionsgate (The Hunger Games).’
Hunger Games). Priddy adds: “Those are not new products but they have never been done in a theme park environment before, so we have been very fortunate. Sony has allowed us to use some of the new ghosts from Ghostbusters. So we are really bringing the films to life in the theme park environment.” Visitors to motiongateTM Dubai will also get
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LINQ, Las Vegas
Universal Studios Hollywood
Dubai Parks & Resorts
Master Planner for
Dubai Parks & Resorts. We offer master planning and landscape architecture services to the Middle East and the world. We believe landscape architecture is a visual language. We are committed to using that language to provoke perception, cause reaction, and most importantly, stimulate positive feelings.
Marassi, Egypt
Doha Oasis
www.rhdo.com
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to enjoy attractions based on Dreamworks animation films which Priddy says will be housed in one enormous building – big enough to fit in five Airbus 380s. He adds: “Dreamworks has a demographic that runs all the way from little kids to adults, and in my opinion the Dreamworks franchise has the best sense of humour. We will have all sorts of effects that have never been done before – including Kung Fu Panda, How to Train Your Dragon, Shrek and Madagascar. And all these will be unique in the way the ride technology and animation is being combined and presented to the world.” The park that is aimed at families with
5
The number of Airbus A380s that would fit inside the Dreamworks building
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younger children is Legoland ® Dubai, and the Legoland ® Water Park alongside it. Priddy says: “Legoland® Dubai is not unlike the other seven around the world, although we do have one unique feature. Our Miniland a 90-metre diameter dome, which houses architectural icons from
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the region, created using Lego bricks,– this is clearly weather driven and architecturally it makes a great centrepoint.” The weather in Dubai has definitely been a factor in the design of the attractions, continues Priddy. “We have a fairly elaborate shade programme, to
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minimise guests being outside. When they’re outside, we try to keep them in the shade. All of our queues are 30 minutes of air-conditioned queue plus 30-45 minutes of cool overflow queue” Talking about the months ahead, Priddy describes the run-up to opening a theme park as a ‘very happy train wreck’. He is referring to all the different teams pushing to get their elements ready, the extensive testing of rides and attractions. “You have to make sure it all works and it’s safe and
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“We’re using lighting, projection, holograms, animated figures, and that is all run by computerised control systems. It’s quite technologically rich” – Matthew Priddy, CTO
reliable,” he says. And there is a lot of technology that needs to be tested. “Whether it is control systems, music, development, exterior entertainment lighting, the list just goes on and on and on. The technologies that we’re combining are programmable ride systems which can vary at speed and has to be put together in conjunction with the soundtrack, with the music, with the media to make sure that we’re hitting all those marks. We’re using lighting, projection, holograms, animated figures, and that is all run by computerised control systems. It’s quite technologically rich.”
To make sure all is working as it should when the crowds arrive in October this year, Dubai Parks and Resorts will be initiating what Priddy calls a testing and commissioning. “You might, depending upon the status of things, open one park one day, open another park the next day and so on. This serves two functions. It allows us to bring out the systems and make sure they’re properly tuned and identify any problems that we might have in parts. It also means we can train the staff. We’re bringing in over 4,000 people, many of whom have limited
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park operations experience so there is a lot of training and development that has to go on.” Recruiting – and training – this many people is clearly a big challenge but, for Priddy and his team, the procurement phase was equally tricky, because there is only a certain number of people who can produce what a theme park needs, so there may be timing and capacity issues.
He says: “Other projects going on in the world were chasing similar resources. So we had to get creative in procuring these packages. And the procurement team did a fabulous job - we managed to find the vendors and structure the packages that we think we’ve got it covered. But it was a challenge.” The hard work was well worth it though, as the park currently has
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Abu Dhabi International Airport, Midfield Terminal Complex Abu Dhabi, UAE
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95 percent of its ride systems either installed or in the warehouse ready to go. “And we’ve got a good 50 percent of all the shows either in the warehouse or on the water which is a tremendous accomplishment by our guys,” Priddy adds. “The goal is to get in and start playing with it so we can make sure we can dig out all problems and deal with them as early as we can. The role of the project manager and the technical division is to look for bad news. It is to look for problems and deal with them now. Not later. We’re doing a great job.” Without exception, everyone we spoke to at Dubai Parks and Resorts had a love of theme parks running through their bloodstream. A passion that Priddy epitomises. He says: “I majored in theatre technology in UCLA. That is really all about lighting, audio, rigging, scenic construction and stuff like that.” This eventually led to a call from Walt Disney requesting that Priddy join its team building scenery for the Epcot Center. “Typically theme parks at that time used the Hollywood film studios to build all the scenery but it didn’t have the capacity for Epcot so we needed to set up our own. So we built 3.5 million square feet of scenery plus Tokyo Disneyland at the same time and
“When we mature as a park and we have the right dialled-in level of talent, I know for a fact that we will become known as one of the top innovators in the business” – Matthew Priddy, CTO
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shipped it out of California in 18 months. It was a lot of all nighters but it was a lot of fun.” Earlier on, Priddy mentioned that R&D is part of his responsibility, and it is a fascinating part of a theme park as new and unique attractions are sought. He says: “It’s natural for all of us. You see something and you say ‘Ooooh, I could
apply that to some part of the theme park’. Whether it is a technology or a combination of technologies; maybe you have an idea of a special effect and the technology doesn’t exist. Then you have to come up with it. You have to figure it out with all your smart people what combination of systems technologies and products you can combine
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and utilise. When we mature as a park and we have the right dialled-in level of talent, I know for a fact that we will become known as one of the top innovators in the business.” While touring the Dubai Parks and Resorts site, our guide was regularly pointing out space that has been allocated for future expansion. And it’s easy to see that will be in the very near future, as it’s impossible to imagine the site being anything other than a huge success. “Once we open and based on market demand we have to think of expansion within the existing parks - each has probably 30 percent
“We believe our business plan is such that it’s best to have more demand than capacity” – Matthew Priddy, CTO
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of its original size available. We believe our business plan is such that it’s best to have more demand than capacity but at some point that deteriorates the guest experience so we have to be ready to expand. The rule of thumb is every 18 months, maybe two years, you should be putting in a new attraction that gives you a marketing hit
and a spike in attendance.” So, will the site be ready for the crowds in October this year. The answer is a very loud ‘yes’, thanks largely, says Priddy, to strong relationships with suppliers. He says: “I really believe we couldn’t have done this without all of our suppliers, our contractors, our architects and IT consultants. It’s a world
25m 10.5bn 2.4bn
The total land size of development in sq. ft.
Total estimated cost in AED, 6.3 bn equity and 4.2 bn finance facility
100+ 6.7m The number of Rides and attractions
Projected number of visits in 2017 across the theme parks
Projected revenue, in AED, for first full year of operation
Oct ‘16 Grand Opening for the Dubai Parks & Resorts
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class bunch of companies. They have supported us really well. I think in turn we have been a very good client to work with. We pay our bills and we respect their
“I really believe we couldn’t have done this without all of our suppliers, our contractors, our architects and IT consultants.” – Matthew Priddy, CTO
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requirements. There was a bit of the stigma from 2008 when the financial crash happened and a lot of people didn’t get paid. So there was a little bit
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of trepidation on part of some of our partners, but we have done an awesome job dispelling all that to the extent that I believe that every one of our contractors will be back here next time around. Happily.”
4k
The number of staff required for the opening day w w w. d u b a i p a r k s a n d r e s o r t s . c o m
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Setting the bar
SKY HIGH General contractors Hunt and Austin join forces on a modernization project at Phoenix’s Sky Harbor International Airport Written by: Robert Spence Produced by: Tom Venturo
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Northwest Exterior Perspective
A
rizona’s pride and joy, the Sky Harbor International Airport, is getting a makeover. The renowned airport — located in the heart of Phoenix, three miles southeast of downtown— serves nearly 40 million passengers every year and has 106
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become a mainstream destination for travelers. With those numbers projected to grow considerably by 2019, the airport is undergoing an expansion project to accommodate the rising growth while also creating a world-class traveling experience for passengers.
M O D E R N I Z AT I O N PROJECT The need to expand Sky Harbor is clear. The day after the 2015 Super Bowl the airport set a one-day record for passengers. Another record was set in March, when monthly traffic came in at a
staggering 4.25 million passengers. To keep pace with growth in the area, the City of Phoenix has greenlit a five-year, $590 million designbuild project known as the Terminal 3 Modernization Program at Sky Harbor International. This project, which aims to accommodate the w w w. h u n t a u s t i n j v. c o m
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HUNT AUSTIN expanding demand on the airport, will benefit generations to come. The expansion will take place in three construction phases over a five-year period. The first will expand security checkpoints at Terminal 3, while the second phase will expand ticketing and baggage claim, concessions and passenger load and unloading areas. Finally, the third phase will add nine gates to the South Concourse. Renovations include the South Concourse, which will feature a new passenger concourse consisting of a passenger level and an apron level for service and support functions.
SUPPLIER PROFILE
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Meanwhile, the North Concourse is set to undergo a comprehensive renovation of the passenger and apron levels including 10 gates, with an expansion at the mid-point as a ‘node’ to accommodate additional amenities. PHOENIX’S FINEST Under the leadership of Austin Commercial and joint venture partner Hunt Construction, the project will include expanded and upgraded checkpoints, additional ticket counters, baggage processing capacity, baggage claim carousels, gates, and expanded
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Expert design and engineering provides maximum project value and return Resolute Performance Contracting is a specialty contractor with expertise in design-build structural steel fabrication and erection, concrete, and coatings. At RPC, we are relentlessly committed to safety and exceeding expectations every step of the way. Our team of professional constructors, engineers and managers can provide creative solutions to suit the most challenging operational needs.
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food concessions and retail stores, along with the installation of dynamic signage to direct traffic around the airport. “The project is very unique in terms of the two companies working together, combined with the design and build aspect,” said TG Mason, project manager for the Modernization Program. “For this project we had a three-headed design team. DWL Architects and Planners were the original designers for Terminal 3 and took the lead. They have a tremendous amount of experience here in Phoenix.”
SUPPLIER PROFILE
West Yard, May 2015
RESOLUTE PERFORMANCE CONTRACTING
Resolute Performance Contracting executes scopes ranging from complete EPC services to subcontracted steel fabrication and erection and concrete installation. Typical projects run from site identification through preliminary designs (always with an eye for value-engineering as identified by the RPC design staff) all the way to final commissioning and delivery. At Resolute, we believe our exceptional safety record is the best measure of our project success. We are licensed General Contractors in Hawaii, California, Arizona, New Mexico and Tennessee. Resolute’s expertise includes steel fabrication (the company has its own fabrication shop) and erection, concrete installations, corrosive environments mitigation, pile driving, design, surveying, site preparation, safety, general conditions and tenant improvements. Successful projects include commercial solar installations (covered parking structures, roof and ground mount) across the US; handrail and concrete for a major stadium renovation; miscellaneous and structural steel for a luxury hotel; and the miscellaneous metals package for an airport. Website: www.resolutepc.com
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Air conditioning powered by the efďŹ ciency and reliability of Huntair Fanwall Technology and System Optimization
Terminal Three at Phoenix Sky Harbor Just Got a Whole Lot Cooler There is a long list of new improvements for the renovation of Sky Harbor International Airport Terminal Three. Arguably the coolest improvement is the condition of the air inside. Thanks to the team at Varitec and Huntair along with the new Huntair Fanwall Technology Units, the new Terminal Three will deliver cool, comfortable air at optimal efďŹ ciency, saving money and energy for the life of the project. Sky Harbor, meet the future of HVAC.
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HUNT AUSTIN According to Mason other collaborators included Dallas-based Corgan, an international leader in aviation, and The Smith Group, one of the oldest continually operating architects in the United States for the last 100 years. “We looked to them as the design visionary, to bring the contextualization of Phoenix to the airport,” said Mason. “With everyone together it creates a unique a team. There’s lots of industry insight and collaboration going on, and I think it’s best for the project.” Echoing the sun-emblazoned
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South Elevation Exterior, May 2015
VARITEC AND HUNTAIR
For over 40 years Varitec has been a leader in engineering, developing and installing large-scale, energy-efficient HVAC systems for commercial buildings. Varitec delivers world-class solutions by partnering with world-leading HVAC brands such as Nortek Air Solutions and Huntair. Huntair’s Fanwall Technology and System Optimization features industry-leading airflow and acoustic performance, energy efficiency, electrical and installed cost savings, as well as easy maintenance as compared to alternative options. Varitec’s years of industry expertise combined with Huntair’s leadership in manufacturing come together to deliver solutions that provide an owning experience that is second to none. Website: www.varitecsolutions.com | www.huntair.com
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133 E Comstock Dr, Suite 1 Chandler AZ 85225 P: 480-951-5301 F: 480-951-5989 E: info@flemingwest.com
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Arizona state flag, a unique feature of the expansion project incorporates one of the most pervasive symbols of Phoenix. “We had one of our design partners use their proprietary software to map the patterns of the sun during the year because we wanted to design the building so it could maximize light from the sun,” Mason said. He added the project is also aiming to be LEED silver certified 114
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part, as most of the material being used is recycled. CHALLENGES For HuntAustin, the primary challenge for the Modernization Program lies in the fact Terminal 3 has remained — and will continue to remain — in operation during construction. “It’s kind of like performing heart surgery,” said Mason. Determined to live up to Sky
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3045 S. 7th Street Phoenix, AZ 85040 602-233-3339 Office Ksomerville@buesingcorp.com
MASS EXCAVATION / TRUCKING SHORING & DRILLING
Sky Harbor Terminal 3 Admin Building Hunt-Austin JV
SITE DEVELOPMENT / GRADING STRUCTURAL EXCAVATION & BACKFILL CONCRETE & ASPHALT RECYCLING
Buesing Corp, in our 51st year, conducts work in the commercial, industrial, residential, solar, multi-family, healthcare, higher education, hospitality, and public work markets. We are a leader in the industry and have worked hard to gain the trust and reputation from our customers over the years. Safety, quality, schedule and equipment uptime are important to Buesing Corp. Our talented, hardworking, and loyal people help make Buesing Corp. Simply The Best! www.buesingcorp.com
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Harbor’s motto of “America’s Friendliest Airport,” Hunt Austin is committed to making the construction efforts as painless as possible. “We’re doing this in phases in order to minimize the impact on travelers,” Mason said. “We interface with our team regularly and coordinate with the airport to reduce impact. The focus is on the
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customer.” The first phase was completed earlier last year, while phase two is scheduled to be finished in late 2017. The project is expected to be fully completed by 2020. “When phase one opens it will include state of the art security checkpoint,” said Mason. “It uses the latest technologies in aviation and TSA to create a comfortable
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“WHEN PHASE ONE OPENS IT WILL INCLUDE STATE OF THE ART SECURITY CHECKPOINT” – TG Mason, project manager for the Modernization Program
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Saving Lives and Property Since 1985
Sunstate Installations, Inc is a full service Arizona Corporation specializing in service, sales and installations of building specialties, architectural woodwork, gym equipment, modular casework, lab casework, lab equipment, and furnishings.
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feeling for passengers.” “ A P R O J E C T I S O N LY A S GOOD AS ITS PEOPLE” According to Mason, a majority of the subcontractors used were local 120
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to Phoenix, or had local offices. “We wanted to find local expertise and maximize the local workforce and small business. “One of the things I can’t stress enough is that a project is only as
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Company Information NAME
HuntAustin Joint Venture PROJECT NAME
Sky Harbor International Airport PROJECT BUDGET
$590 million INDUSTRY
Construction HEADQUARTERS
Phoenix, Arizona - USA
good as its people. We’ve been very fortunate with Hunt and Austin to pull forward this great team,” said Mason. “Everyone has worked really well together, taking a lot of pride in the project. They’re proud to put their name on this. There’s a lot of personal satisfaction for me as well.” w w w. h u n t a u s t i n j v. c o m
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BUILDING FOR SUCCESS Full-service general contracting firm KPRS seeks to help build the California landscape Written by: Sasha Orman Produced by: Tom Venturo 123
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Glendale Arts Colony. The housing project is constructed using sustainable green pr
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outhern California is a land of dreamers, with entrepreneurs changing the state of industry and architects envisioning a brighter landscape. With concrete, steel and knowhow, contractors help both make their dreams a reality. Brea-based KPRS Inc. shares in this progress, lending its expertise in design build, construction and management to Los Angeles area clients. 124
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C R E AT I N G A N E W V I S I O N In November 2014, Meta Housing Corporation teamed with the YMCA and the city of Glendale to begin development on the Glendale Arts Colony, a 70-unit multifamily affordable apartment complex with a very special vision. Designed by architectural firm Studio One Eleven, the project contains not just four stories of residential housing but community rooms, a sculpture
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rinciples, and built to LEED Sliver standards certification
garden, and professional art studio and gallery spaces. “The idea is to attract young artists to the area, and to develop affordable housing for those artists,” explained Paul Buse, Senior Project Manager and Partner at KPRS. To handle the building and structural challenges of this project, Meta Housing Corporation and Studio One Eleven turned to the proven capabilities of KPRS.
“THE IDEA IS TO ATTRACT YOUNG ARTISTS TO THE AREA, AND TO DEVELOP AFFORDABLE HOUSING FOR THOSE ARTISTS” – Paul Buse, Senior Project Manager and Partner at KPRS w w w. k p r s i n c . c o m
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AIR CONDITIONING • REFRIGERATION • ENERGY MANAGEMENT • CONTROLS ACR Energy Systems is an HVAC Contractor EST 1991. We provide quality installations and services, and meet project deadlines. We specialize in New Construction and Retrofits of Commercial & Industrial Buildings. We offer Design and Build or Customer Specified Installation of HVAC. We offer replacement of existing HVAC Units and Retro-Fit existing systems to save Energy and provide full se service and maintenance to all HVAC Systems.
3002 Dow Avenue, Suite 502, Tustin CA 92780 P: (949)716-1259 F: (949)716-1258 E: admin@acrenergysystems.com
Almost 1,000 building developments in Southern California began with a solid foundation and Crew Inc. performing the demolition, clear and grub, over-excavation, compaction, and finish grading work.
We supply, install, repair and service the following: • PACKAGE UNITS UP TO 300 TONS • SPLIT SYSTEMS UP TO 300 TONS • WATER CHILLERS UP TO 300 TONS • COMMERCIAL WATER BOILERS • COOLING TOWERS & WATER PUMPS • DDC CONTROLS & ZONING SYSTEMS • VARIABLE REFRIGERANT SYSTEMS (VRF)
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Quality You Can Trust Richmond Plastering Inc. is an industry leader providing the very best in quality workmanship for over 36 years. We have expertise in all Plaster and EIFS specialty systems.
Building Together Since 1994 19618 S. Susana Rd, Rancho Dominguez, CA 90221
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“This is built on a small piece of property, so the perimeter of the building is very near the property lines of the site,” said Buse. “We are also building right adjacent to a YMCA that has parking issues of its own. So, dealing with construction access is probably the biggest challenge, and getting enough manpower to stay on schedule and getting vendors on board with that is challenging in and of itself.” Working and finding access avenues within such close quarters requires finesse. KPRS was able
to overcome these challenges on a tight timeline, keeping the Glendale Arts Colony on schedule to open September 2016. REBUILDING WITHIN COMMUNITIES KPRS also realizes new visions for existing landmarks, like its 92,000 square foot Lake Forest Gateway Shopping Center and 59,908 square foot San Clemente Phase I and II projects currently under construction. Both retail projects have entailed extensive renovations
Lake Forest Gateway. The renovated shopping destination includes multiple lifestyle communal areas with fountains, trellises, and other amenities
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Lake Forest Gateway. The 9-acre retail center is located at the epicenter of South Or
to modernize existing shopping centers for today’s consumers. KPRS has been involved with both projects from the design build phase forward, and have been instrumental in navigating each project’s unique challenges—from full depth reclamation to improve existing subgrade issues to tunnel barricades and precision planning 128
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for utility overhauls that don’t interfere with tenant operations. “The number one priority whenever you’re renovating an existing, operating center is always safety—safety for the public, safety for the tenants, and safety for the construction personnel,” said Buse. “I think the challenge on many existing retail centers is that
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range County, CA near the 5 and 405 Freeways
the utility infrastructure completely changes, which creates distinct challenges keeping the existing tenants operational.” With this eye to safety and innovation, KPRS is able to stay on track with plans while satisfying building owners and working tenants alike. “Getting us involved in the early
design phase helps to facilitate the process and make important decisions early on—like what will we do with the existing tenants?” said Buse. “There are also a lot of unknowns that are uncovered through the process whenever you’re doing existing façade renovation. KPRS does a great job in helping the owner minimize w w w. k p r s i n c . c o m
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Lake Forest Gateway. Major tenants include Starbucks, Buffalo Wild Wings, Panera Bre
cost by way of looking at different alternate methods of achieving the look that the architect was after.� WORKING TOGETHER T O S TAY O N TA S K With large construction projects for multiple tenants, especially remodeling projects where tenants 130
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are often doing business throughout the construction process, time is of the essence. KPRS understands this and takes every step possible to ensure that projects run smoothly and that everyone is on the same page. “A lot of it is just partnering with the vendors we have gathered and
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“LIKE ANYTHING ELSE, THE SQUEAKY WHEEL GETS THE GREASE—IF YOU STAY IN FRONT OF THE VENDORS AND IMPRESS ON THEM HOW IMPORTANT IT IS TO HAVE A COMMON GOAL OF SCHEDULE, THAT TENDS TO GO A LONG WAY.”
ead and Nekter Juice Bar
making sure they understand how important it is to stay on schedule,” said Buse. “Like anything else, the squeaky wheel gets the grease—if you stay in front of the vendors and impress on them how important it is to have a common goal of schedule, that tends to go a long way.” Careful preparation also lays the
– Paul Buse, Senior Project Manager and Partner at KPRS
groundwork for a more streamlined project, and is key to KPRS construction plans. “It is all about preplanning—getting information out there as early as possible as to when you need materials, when you need manpower, and when their time to arrive on site is going to be,” Buse adds. “Getting that in well w w w. k p r s i n c . c o m
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TELECOMMUNICATIONS TECHNICAL SERVICES POWER / ELECTRICAL
WET UTILITES INSIDE PLANT SPECIALTY SERVICES
VCI Construction is a full services general engineering contractor providing engineering, underground substructure, aerial, storm drainage, sewer, wet utility infrastructure, wireless communications and electric service construction. Diversiied service offerings is what keeps VCI ahead of its competition and provide solutions to our customers ever changing needs. 1921 W. Eleventh St., Upland, CA 91786 Tel: 909‐949‐1350 / 909‐946‐0924 CA 765716 / NV 0074442 / AZ 278321 / HI C32256
ahead of time is what helps you stay on schedule.” RESPECT FOR THE CLIENT AND THE PROJECT Whether it’s a remodel or a full build out from the foundation up, some parts of construction projects are bound to be similar. But from site logistics to client and tenant needs, every project also has components that make it unique. KPRS believes 132
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San Clemente Plaza. Phase I of the pro new anchor stores: Sports Authority, St the Plaza feature modern tower elemen
in finding that unique aspect of each assignment it takes on, and giving it the extra attention needed so that all parties involved can be proud to put their names on the finished product. “For us it’s about service to the client and the project goals,” said Buse. “I’ve often found that if you look at the project as something of its own entity, and give that project what it needs to be successful, generally all parties that are a part of the project become successful
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Company Information INDUSTRY
General Contractor HEADQUARTERS
Brea, California - USA FOUNDED
1998 EMPLOYEES
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oject included the renovation of an old K-Mart into three tein Mart and Sprouts Market. Other improvements to nts on the facade, with copper domes
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$300,000,000
as a result. If you can get vendors and the consultants and the owner on board with that as a team, it tends to work to the project’s benefit.” After all, just as a rising tide lifts all ships, a successful construction project is a win for everyone who made it happen along the way. Through its hard work and innovative ideas, KPRS strives to achieve that kind of win every time. “Then the owner is successful, our vendors are successful, the consultants are successful,” said Buse. “And ultimately KPRS is successful as well.” w w w. k p r s i n c . c o m
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PROTECTING THE
SACRAMENTO RIVER WATERSHED How the Regional San EchoWater Project will bring Sacramento’s wastewater treatment to a whole new level Written by: Sasha Orman Produced by: Tom Venturo
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t the end of 2010, the state of California issued a new set of rigorous water quality guidelines, along with its latest permit for Regional San. Created out of concern for the ongoing health and safety of the Sacramento River where wastewater is safely discharged, as well as a broader concern for water usage in California, this mandate includes heightened regulations regarding ammonia and nitrate removal and stricter guidelines for pathogen reduction. To meet the requirements within the mandate, Sacramento’s wastewater treatment plant needs to improve its ammonia and nitrate removal rate by 2021 and enhance pathogen removal by 2023. Because its current wastewater treatment facility, which went online in 1982, does not meet these news treatment requirements, Regional San aims to meet the new mandates with the EchoWater Project, one of the largest public works projects in Sacramento history. With this project, Regional San is on its way to increasing opportunities for 136
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recycled water usage and achieving a higher standard of water quality in the Sacramento River watershed. FROM PILOT TO FULLS C A L E I N N O V AT I O N “We’re calling this major upgrade the ‘EchoWater Project’ to reflect how it will take our wastewater and
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return it to a clean, natural state— much like an ‘echo’ returning to its original source,” stated Regional San in its launch of the project. Regional San’s goal with the EchoWater Project is a full upgrade of functionality from an advanced secondary to a tertiary level of treatment. This will have several
concrete effects, including a 95 percent ammonia reduction in water discharged to the Sacramento River. Regional San’s EchoWater Project consists of about 15 individual initiatives working in concert to achieve this overarching goal. At the center of these projects is the construction of a massive biological w w w. re g i o n a l s a n . c o m
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nutrient removal (BNR) facility. A $600 million development the size of 20 football fields, the facility will be able to effectively remove practically all ammonia and nitrate from wastewater as it flows through the plant. Regional San perfected the capabilities of its new BNR facility by first building a 0.5 million gallon per day (MGD) “pilot” facility for hands-on research. “The pilot facility was designed and built in 10 months,” said
Vick Kyotani, Deputy Director of Operations and Program Manager for the EchoWater Project. “It was operated for a 12 month period to validate the BNR process, and test three filtration technologies and three disinfection technologies.” After testing nine different treatment train options in total, Regional San used its data along with business case evaluations and life cycle cost analyses to decide on the most cost effective technology
Intentional Design | Exceptional Places
calpo hom & dong ARCHITECTS 2120 20th Street Suite One, Sacramento CA, 95818 phone: 916-446-7741 web: chdarchitects.com
Auburn Constructors is proud to partner with SRCSD on the EchoWater Project. For over 25 years Auburn Constructors has been committed to providing outstanding performance, value and client satisfaction in the construction of water and wastewater treatment facilities. 730 W. Stadium Ln. Sacramento, CA 95834
T: 916·924·0344 F: 916·924·1800 W: www.auburnconstructors.com
E C H O W AT E R P R O J E C T
“The pilot plant allowed us to select the technologies to complete a facility plan that was needed to complete the environmental permitting process.” – Vick Kyotani, Deputy Director of Operations and Program Manager for the EchoWater Project w w w. re g i o n a l s a n . c o m
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to achieve its goals. “The pilot plant allowed us to select the technologies to complete a facility plan that was needed to complete the environmental permitting process,” said Kyotani, explaining how Regional San will integrate its pilot program findings into the full scale facility. “Selecting the most cost effective solutions used for the basis of designs 140
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allowed us to progress the design faster—we did not need to select the technology as part of the design process. This reduced the design time required, and a second phase of testing on the selected technologies has allowed us to get approval of higher filter loading rates and more optimized disinfection parameters which will significantly reduce project costs.”
A N A R R AY O F UPGRADES Beyond the main BNR facility, the additional initiatives will support and enhance water quality through such features as: • Tertiary treatment facilities with functionalities including granular media filters, pump station and chlorine contact basins;
• A massive flow equalization project, which will provide increased storage to existing basins to reduce peak flow volumes to the BNR facility; • Nitrifying sidestream treatment to reduce ammonia loads before they reach the main BNR facility, reducing strain and chemical costs on the main plant; • New and improved disinfection w w w. re g i o n a l s a n . c o m
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chemical storage facilities, which will replace the current existing gasbased disinfection system with a safer liquid system, and; • An all-new return activated sludge pumping system, which will provide upgraded replacements for the 48 existing pumps, VFDs and electrical power and control panels currently in use at secondary sedimentation tanks. Regional San is also taking an innovative approach to design throughout the EchoWater Project, improving efficiencies and accuracy through design tools and methods like 3D design models to reduce the occurrence of design errors, reliability centered design (RCD) and maintenance (RCM), and 5D modeling with Synchro technology to watch construction in time lapse and identify potential timing conflicts before they occur. “The goals of these efforts are to provide the most efficient and reliable systems possible, not only in terms of initial capital cost, but more importantly for the long term life of the assets,” said Kyotani.
BENEFITTING SACR AM ENTO’S ENVIRONMENT AND THE COMMUNIT Y When completed, the EchoWater Project will bring multiple benefits to Sacramento and its residents, not least of which is a higher standard of water quality for the Sacramento River, which will in turn provide better protection for the delicate Sacramento River Delta ecosystem. “The entire treated flow from the upgraded plant will meet Title 22 recycled water quality,” said Kyotani, noting that Regional San is actively working on projects to increase the usage of recycled w w w. re g i o n a l s a n . c o m
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water in and around the city and county of Sacramento. “We currently supply about three MGD of recycled water for irrigation to communities in the Elk Grove area south of the treatment plant, and will be supplying about one MGD for cooling tower use to a cogeneration 144
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facility in the City of Sacramento,” he said. “We are also in the planning stages of a large recycled water project for agriculture in south Sacramento County.” Regional San is also exploring further environmental improvements with this project. One project
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Company Information NAME
Sacramento Regional County Sanitation District INDUSTRY
Wastewater treatment plant HEADQUARTERS
Elk Grove, CA - USA FOUNDED
1973 EMPLOYEES
375 PROJECT NAME
EchoWater Project PROJECT BUDGET
already in progress is a solar array, which will generate power that will in turn be fed back to the wastewater treatment plant to mitigate additional electricity usage from the EchoWater Project. Not only will this potentially create savings for ratepayers, but the use of renewable energy will create a treatment plant that is more environmentally sound.
$1.85 billion P O P U L AT I O N SERVED
Approximately 1.4 million
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SERVICE FOR A
GROWING COMMUNITY The North Texas Municipal Water District (NTMWD) provides regional service through unity Written by: Eric Harding Produced by: Jason Wright
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ith a goal of meeting the drinking water, wastewater treatment and solid waste disposal needs for the member cities and customers, the North Texas Municipal Water District (NTMWD) looks to provide regional service through unity to fulfill the needs of today and tomorrow. With a service population projected to double by 2040 and triple by 2060, North Texas is home to one of the fastest growing regions in the United States. To continue to meet the needs of the cities it serves, NTMWD will continue to collaborate with the cities to develop infrastructure requirements to meet the needs of the region, today and tomorrow. “The partnerships we have with those cities are really important,” said NTMWD assistant deputy director of wastewater Jenna Covington. “They’re our clients; we’re here to serve them. “Having those strong partnerships is critical to us being a good service provider to them.” 148
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ECONOMIC DEVELOPMENT NTMWD identifies future infrastructure needs to accommodate growth, develop and execute projects to meet the needs of the community.
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Projects such as the new Dallas Cowboys training facility and the “$5 billion mile” of projects along the Dallas North Tollway invite huge amounts of growth to the area. NTMWD is preparing for this through infrastructure development
and reinforcement projects, working closely with the city to project land use and population projections through build out. “We’re in a very fast-growing area,” said Covington. “There’s significant challenge and w w w. n t m w d . c o m
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opportunities associated with that, which puts us in a unique position.” Such an opportunity comes in the form of the Stewart Creek Waste Water Treatment Program (WWTP). Currently rated at 5 million gallons per day (mgd), this set of construction projects is set to expand that figure to 10 mgd. The facility is permitted to discharge up to 15 million gallons 150
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per day in the future, with additional improvements. “There’s a lot of big development happening within the service area of this facility,” said Covington. “There’s a lot of commercial development and residential highrise development in that general vicinity that had really happened over the last couple years. The changing economic conditions are a
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big driver.� Regulations have not changed as a result of the growth, however. For example, the Texas Commission on Environmental Quality has implemented new discharge requirements for facilities discharging in close proximity to reservoirs. NTMWD is staying abreast of these increasing water quality
discharge requirements, and has made provisions to meet the requirements using chemical precipitation on an interim basis. N E W W AY S O F T H I N K I N G NTMWD has closely coordinated with the City of Frisco to optimize the network of infrastructure and to meet the current and future needs for community members. w w w. n t m w d . c o m
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WE ARE H 2 OBSESSED.
WATER OUR FOCUS OUR B U S IN E S S
OUR PASSION
Water is all we do. It’s all we think about, every day of every week. And the results have been inspirational. Today, we have grown to become the largest engineering firm in the country solely dedicated to water and wastewater.*
*Per Engineering News-Record, May 11, 2015, “Top 500 Design Firms” ranking.
An example is the ability to transfer flow from Stewart Creek WWTP to Panther Creek WWTP (an existing 10 mgd facility also serving City of Frisco). This transfer has been used as an interim measure to support current development, provide redundancy, flexibility, and optimize capital capacity expansions. The existing facility is continuing to be leveraged to reduce capital expenditures associated with the expansion. 152
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NTMWD uses Supervisory Control And Data Acquisition (SCADA) to allow for a better understanding of what’s happening within the facility. This tool increases efficiency by controlling the equipment to produce higher quality water and save operating costs. SCADA systems are adaptable in several different industries because they can range from simple configurations to large, complex projects. Virtually anywhere you look in today’s society, there is some
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C O M PA N Y N A M E
“Communicating with stakeholders and addressing concerns has built trust.” – Jenna Covington, NTMWD assistant deputy director of wastewater 154
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type of SCADA system running behind the scenes. In NTMWD’s case, this system is used at ten water and wastewater treatment facilities. S U S TA I N A B I L I T Y MEASURES The City of Frisco is the leading utility for non-potable water reuse
USA
in North Texas, and NTMWD is pleased to partner with them in its sustainability endeavor. Both the Stewart Creek WWTP and Panther Creek WWTP effluent water is used throughout the city for irrigation at locations such as Toyota Stadium, multiple schools, city parks, athletic complexes and open spaces. In addition, NTMWD is a leading utility in the nation for indirect potable water reuse. Treated effluent is diverted into the 2,000 acre constructed wetlands for
polishing and returned for use as water supply. NTMWD plans to continue putting significant emphasis on public education, awareness of efficient use of water, and implementation of water reuse strategies. MANAG ING COM M UNIT Y NEEDS AND CITIZEN INPUT “Communicating with stakeholders and addressing concerns has built trust. We maintain an open line of communication with neighbors and w w w. n t m w d . c o m
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other stake holders such as nearby home owners associations and elected officials,� said Covington. During the planning for the expansion of the plant, NTMWD and the City of Frisco held joint stakeholder meetings with local residents to address concerns, 156
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explain the need for the project, and discuss the treatment technologies that would be employed to address their concerns. “Part of the Stewart Creek WWTP project is the construction of a berm with landscaping to create a nice visual, capture and treat foul air to
USA
Company Information NAME
North Texas Municipal Water District (NTMWD) INDUSTRY
Water, Construction HEADQUARTERS
Wylie, Texas - USA EMPLOYEES
751 MANAGEMENT
Assistant deputy director of wastewater: Jenna Covington
reduce odor impacts, and consistently produce high quality effluent that is used throughout the city for irrigation and discharged into Stewart Creek. “NTMWD puts significant investment and emphasis on developing and maintaining a good neighbor status,” Covington said.
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AN AC
C g the ag
ATTITUDE OF ACHIEVEMENT
Civmec is a relative newcomer to the Australian resources market but its growth has been unstoppable. Co-founder and CEO Pat Tallon explains gile philosophy that is keeping the company ahead in challenging times. Written by: John O’Hanlon | Produced by: Glen White
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stablished late in 2009, Civmec wasted no time in making itself the go-to multidisciplinary service provider to the Western Australia (WA) contracting market, winning its first contracts to construct two 400T precast intake pump structures for the Binningup Desalination Plant and site civil works in the same year. 2009 also marked the start of construction of its waterfront facilities on the Australian Marine Complex (AMC) at Henderson south of Perth. Today, Henderson is the largest undercover fabrication facility of its kind in Australia at 120,000 square metres. Roughly a quarter of the facility is dedicated to the fabrication, assembly and commissioning of smart modularised structures up to 4,000 square metres and 18 metres high under a single roof. “It couldn’t be in a better location,” says Civmec CEO Pat Tallon. “We can do pretty much anything that any customer can throw at us, and we can do it very efficiently and very quickly.” According to Tallon, all of Civmec’s sites, spread from 160
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Western Australia to New South Wales, Queensland and the Northern Territories, were chosen for optimum access to ship, road and rail logistics. In its first four years, Civmec targeted the booming mining and offshore oil and gas (O&G) sectors. Despite recent falls in commodity prices, which have hit Australia’s iron ore, coal and hydrocarbons sectors particularly
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Civmec Henderson
hard, the solid reputation Civmec has gained with the oil industry, such as providing the subsea manifold for Apache’s Coniston project, have ensured a healthy continuing order book. “The contracts are smaller than they were before, but there is still a requirement for innovative expertise – and smaller jobs require just as much project management input as
the larger ones,” says Tallon. It’s a similar story in mining. Low prices mean that the majors are typically working their plants to their nameplate capacity and beyond as volume takes the place of margin. The emphasis of the iron ore market has shifted to some extent from China to fast growing markets including India and developing African and Asian economies. w w w. c i v m e c . c o m . a u
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Building with strength, performance and passion. Holcim is one of the world’s leading construction materials companies, delivering cement, aggregates and concrete in over 70 countries. With strength, performance and passion we have been supporting Australia’s construction industry for the past 100 years. Previously known as Readymix in Australia our products have built some of our country’s most iconic landmarks from major infrastructure, civil and mining projects right through to residential. Our 3,000 people located at 300 sites help us deliver. With strength, performance and passion. www.holcim.com.au | ph (02) 9412 6600
Strength. Performance. Passion.
AUSTRALIA
However there is still a significant level of confidence among companies like Rio Tinto, which has partnered with Civmec on important projects and the huge Hancock Prospecting’s Roy Hill development in the Pilbara, where Civmec was called in when an overseas fabrication contractor failed to deliver. A large package of work was involved, including three structural steel modules up to 160 tonnes, platework, conveyors, extensive cabling, electrical switchrooms and up to 620 Civmec personnel to
deliver the job on a tight nine-month schedule. “We are happy with our performance at Roy Hill, because it proved we can deliver technically and commercially on a job like this,” says Tallon. A TA L E O F D I V E R S I F I C AT I O N Nevertheless the downturn is a fact, with Tallon explaining the importance of planning from the outset to diversify from year five onwards and to widen the
SUPPLIER PROFILE
HOLCIM
Products and services Holcim operates right across the Australia supplying construction materials from a network of more than 200 concrete plants, 900 mixer trucks, 60 quarries, 16 Humes precast manufacturing plants, and mobile and on-site contracting facilities. We offer an extensive array of premix products designed to achieve specific properties based on their application, transport and construction requirements. Mobile concrete batching and on-site operations service major projects and remote rural communities. Holcim provides an extensive range of technical and testing services backed by laboratory facilities in all major locations. The quarry products available from our operations throughout Australia including rail ballast, aggregates, gravels, road pavement materials, and manufactured and natural sands. Our Humes business is Australia’s longest serving precast concrete manufacturer and specialises in providing engineered precast and pre-stressed concrete. For more information visit us at: www.holcim.com.au
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Construction work at Elizabeth Quay
focus from O&G and mining to infrastructure and defence. The Perth waterfront used to be an under-utilized asset, but now WA’s capital city is finally making the most from it with the $2.6 billion Elizabeth Quay Project, which covers nearly ten hectares of prime riverfront land between Barrack and William streets in the heart of the city. The project creates a magnificent precinct featuring a newly dug 2.7 hectare inlet surrounded by a split level promenade, shops, cafés, restaurants and other exciting entertainment venues. Civmec 164
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secured a major package of work on Elizabeth Quay in July 2014, laying down a marker that it had arrived in the infrastructure space. “The job initially involved the supply of precast marine fascia panels, a very visible, architectural part of the development involving dramatic curved shapes around the whole perimeter. This led to the award of an iconic steel structure, the two architectural arches supporting a pedestrian bridge. Not many people could have delivered the level of quality they needed,” Tallon says.
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Perth Airport Project
Moving from the heart of Perth to the gateway of Perth Airport, Civmec has recently undertaken important parts of the road development around the airport. It has also delivered significant fabrication work at the new Virgin Australia terminal, a world-class facility and the most significant project in Perth Airport’s current $1 billion redevelopment.
These high-profile jobs helped Civmec to secure another contract that will put it very much in the spotlight. In March 2015, Civmec was awarded the contract to deliver the steelwork that is part of the construction of the $1.1 billion Perth Stadium, due to open in 2018. The contract involves the fabrication, surface treatment and installation of over 4,500T of w w w. c i v m e c . c o m . a u
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Perth Stadium Project team reviewing the project schedule
“WE CAN DO PRETTY MUCH ANYTHING THAT ANY CUSTOMER CAN THROW AT US, AND WE CAN DO IT VERY EFFICIENTLY AND VERY QUICKLY.” – Pat Tallon, CEO 166
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structural steelwork that makes up the stadium superstructure. In June 2015, Civmec was also awarded a further contract on the Perth Stadium to part supply and install precast elements including seating platforms and step units. “The stadium contract is the latest in a series of projects where Civmec is taking a major role in the development of new infrastructure for Perth,” says Tallon.
AUSTRALIA
Civmec employees conducting quality checks in the Henderson workshop
SUPPORTING N AT I O N A L S E C U R I T Y All this demonstrates how successfully Pat Tallon and Jim Fitzgerald have led the company from a startup in 2009, through its listing on the Singapore Stock Exchange in 2012, to what is fast becoming a dominating position in the Australian civil contracting market. In a joint venture with Sedgman, Civmec secured its
first full EPCC (Engineering, Procurement, Construction and Commissioning) contract, on the expansion of BHP Billiton’s Jimblebar iron ore mine in the Pilbara. The $145 million contract involves the installation of a new primary crusher and additional conveying capacity which will employ approximately 270 personnel at its peak. “We secured this job on the back w w w. c i v m e c . c o m . a u
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Steel Grating
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of delivering to clients through the EPCM process,” he explains. “It puts us into a different space: under EPCM, the client hired an engineer to manage the project, then the engineer hired the contractors. Under EPCC the client specifies what they wants and we come in, take over the design, liability and the risk and build the plant at a fixed, lump-sum price. It’s better for the client because it delivers cost savings by cutting out the engineer in the middle.” 168
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Mastermesh Perforated & Expanded Metal
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Civmec’s expansion across Australia, as well as its positioning on the SGX, will place it in good stead when it comes to its next planned strategic leap; expansion into the economies of Southeast Asia. Tallon does not propose to rush this move, however for the coming year, he plans to keep the focus firmly on the home market. This is to take advantage of their recent acquisition of the country’s largest privately-owned engineering and shipbuilding company, Forgacs
AUSTRALIA
along with its purpose-built shipyard at Tomago on the Hunter River, just 160 kilometres to the north of Sydney. The 22.7-hectare site includes 535 metres of river frontage with two ship basins. It is hard to overstress the significance of this move, since it gives Civmec the capability to be involved in defence builds over the coming years. The Australian government has just announced that it will spend $150 billion over the next decade to include a doubling of its submarine fleet to 24, three additional destroyers, nine new frigates and twelve offshore patrol boats. This acquisition, added to Civmec’s own excellent reputation for making durable structures for longterm subsea performance, gives Civmec the opportunity to become deeply involved in the government programmes including submarines. A strong contender to design these vessels is Germany’s Thyssen Krupp, working with Siemens for their power plants. It has been suggested that Civmec would be favourite to build the pressure hulls. “We wanted to get into fabrication
and precast on the east coast,” says Tallon. “There are so many opportunities for these activities particularly in NSW, so we are planning to create a facility that mirrors the Henderson site. It will be a major building block in our growth programme and will make up for the shortfall in mining and O&G contracts.”
Submarine hull section unveiled at Civmec Henderson
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James Finbarr Fitzgerald
Patrick J
Executive Chairman
Chief Exec
DOING RIGHT BY THE PEOPLE While diversification and geographical expansion when the time is right remain strategic goals, Tallon zealously guards his company’s founding principles, which put people first. One of his mantras is “hire for attitude, not skills,” a philosophy that plays well in Australia’s journey to a fairer 170
May 2016
society. If a potential employee shows commitment and positivity, any lack of skills can be rectified. “We were all apprentices once,” says Tallon. In April 2014, Civmec was accredited as a Registered Training Organisation (RTO). The training facility at Henderson, as well as managing apprenticeship and graduate programmes for
SECTOR
John Tallon
Kevin James Deery
cutive Officer
Chief Operating Officer
employees, offers free skills training to indigenous groups. It’s not so much, Tallon says, that Civmec and all its Australian clients have a statutory requirement to employ indigenous personnel and subcontractors, as this is something the company tries to do as a matter of principle. It’s that a diverse and non-discriminatory workforce helps to advance the right development of
the society as a whole. Last year the company got together with the David Liddiard Group (DLG) to create a joint venture subsidiary that will principally engage in securing and providing construction and engineering services with indigenous participation, for projects within the Australian defence sector. Civmec DLG takes this w w w. c i v m e c . c o m . a u
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View of the Yandi project where Civmec delivered site civil works, fabri and structural mechanical and piping installation ser
engagement one step further, says Tallon. “DLG was a company that wanted to develop its people. So we came together to combine our understanding and experience in both industry capability and indigenous participation to ensure that each project is able to demonstrate authentic engagement with local Indigenous communities. We aim to upskill the local workforce, ensuring a sustainable 172
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economic benefit wherever we deliver projects.� As Tallon points out, in the defence sector there’s really only one customer. Work must be able to meet very exacting standards in quality, execution and capacity but the government is more committed to indigenous sourcing, and the new entity will be well placed to win defence work. As a further step towards positive
ication, modularisation rvices
AUSTRALIA
“WE GOT THE EPC BHP JIMBLEBAR CONTRACT ON THE BACK OF DELIVERING TO CLIENTS THROUGH EPCM. IT PUTS US INTO A DIFFERENT SPACE.” – Pat Tallon, CEO
The team at Nammuldi after successful w wthe w. c ivmec.com.au installation of the train loadout bin
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Civmec made two donations to Dreamfit during FY2015 from savings attributed to the achievement of specific safety performance targets by our employees
community involvement, DLG contracts will incorporate long-term maintenance agreements so that the communities will benefit for many years post-execution. “We are focused as a company on doing the right thing socially,� 174
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he says. “We are very aware that many employees spend long periods away from their families in remote areas, so we try to involve families as much as we can. We send out progress reports and other materials to the families to keep
AUSTRALIA
Company Information INDUSTRY
Construction, Engineering and Modularisation HEADQUARTERS
Henderson, WA - Australia E S TA B L I S H E D
2009 EMPLOYESS
1500 approx REVENUE
$499 Million (SGD)
them updated and we’ll always help if someone needs to come home in an emergency. Environmentally, we aim to use renewable energy sources wherever possible, utilise sustainable waste management and endeavor to leave a site in as good or an even better condition than we found it.” w w w. c i v m e c . c o m . a u
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BUILDING A GATEWAY
TO PERTH
The Gateway WA Perth Airport and Freight Access Project seeks to give the capital city new levels of safety and efficiency Written by: Sasha Orman | Produced by: Vince Kielty
s
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ith significant global industry and tourism connections, and as Western Australia’s capital, Perth is often our country’s primary entry point for visitors and trade partners—and first impressions are always important. To alleviate Perth’s rising airport and industrial traffic, while ensuring that the city is always putting its best foot forward, Main Roads Western Australia assembled an Alliance of five industry leaders— CPB Contractors, Georgiou, GHD, AECOM, and BG&E—to take on the most ambitious road infrastructure project in Western Australia’s history. “The Gateway WA Perth Airport and Freight Access Project is an iconic infrastructure project for Western Australia, providing a much needed upgrade to one of the State’s most important transport hubs,” says Ilario Spagnolo, Senior Project Director. “A road project of this size and scale had never been carried out in the state before. It was delivered by an Alliance of industry contractors, including Main Roads 178
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Tonkin Highway / Roe Highway interch
Western Australia, which allocated work to more than 600 local subcontractors and suppliers.” The extensive scope of the $1 billion Gateway WA project includes vital upgrades to 7km of Tonkin Highway, 3km of Leach Highway and major interchanges in the area, including the ‘Grand
CONSTRUCTION
hange in operation
Gateway’ at the Tonkin Highway/ Leach Highway interchange, and approximately 21km of continuous grade separated shared path and local connections for pedestrians and cyclists. In addition to these technical upgrades, the project is also creating more pleasant travels through such innovative aesthetic
urban design upgrades as 7km of noise/screen walls and more than one million plants. Such an ambitious project often faces the risk of going over budget and past schedule. But through diligence and careful planning, Gateway WA is on track for completion at the end of March w w w. gatewaywa.com.au
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Gateway WA Quarterly Alliance Directors Award January – March 2015 for the high standard of work delivered on the project “At Westforce we strive to constantly improve and deliver in the most cost effective and safety conscious manner for each and every client on each and every project.”
Westforce is a multi disciplined construction company focusing on major construction, infrastructure and resource projects across Australian metropolitan and remote areas. The Westforce Group has both a “Construction” and a labour and plant “Hire” division. This allows Westforce to offer clients anything from a design and construct lump sum projects to a once off trade and plant placement.
27 Moojebing Street Bayswater WA 6053
T: (08) 9279 1900 F: (08) 9279 1422 E: info@westforce.com.au
www.westforce.com.au
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2016, under budget and nearly a year ahead of schedule. SAFETY ON THE GATEWAY “The vision of the Gateway WA project was a safe and efficient transport network that provides an iconic gateway to Western Australia and the project’s mission was to safely deliver sustainable landmark infrastructure around Perth Airport and the Kewdale and Forrestfield freight precincts,” states Spagnolo. “Safety has always been at the forefront of what we have done and
SUPPLIER PROFILE Employees: 70 -120
what we have delivered.” When a complex project with multiple high risk-posing components is at hand, a commitment to safety cannot simply be lip service. For the Gateway WA Alliance, safety is fully engrained in the workplace culture. The project has entailed what Spagnolo describes as a “hierarchy of control” including engineering, isolation, substitution and elimination to promote a high standard of safety that ultimately achieved concrete results.
WEST FORCE CONSTRUCTION
Established: 2006
Industry: Civil Construction
Services: Specialists in all aspects of the civil construction industry from earthworks to finished concrete & mechanical. Providers of skilled labour crews and plant hire. Ongoing Projects: Roy Hill Chlorides Washing Facility, Beenyup Waste Water Treatment Plant, Australian Defence Facility Upgrade, Boral Crushing Facility, PTA Claisebrook Retaining Noise Walls, BHP Yandi Upgrade. Management: Mike Murrey - Managing Director; John Smith - Commercial Director; Phil Clarke - Operations Director; Paddy Kearns, Resources Director Website: www.westforce.com.au
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Safety Barriers WA (SBWA) supplies and installs a wide variety of safety barriers for roads, bridges, car parks, temporary work sites and mine sites including: · · · · ·
W-Beam and Thrie-Beam Guardrail Wire Rope Safety Barriers (WRSB) Steel Protection Screen Steel Security Bollards Bridge Barriers
Telephone: (08) 9279 0600 info@safetybarriers.com.au
· · · · ·
Top Rail Barriers Concrete Barriers Temporary Barriers Crash Cushions End Treatments
www.safetybarriers.com.au
AUSTRALIA
“Gateway WA’s commitment to providing a robust safety culture resulted in the project achieving more than 4 million Lost Time Injury free hours,” says Spagnolo. “The team focused on the critical aspects of safety across all stages of design and construction, as well as frontline leadership.” That record has not gone unnoticed by the Alliance’s peers—the project took the ‘Best Workplace Safety and Health Management System’ award at the 2015 Western Australian Work Safety Awards.
SUPPLIER PROFILE
AN INNOVATIVE APPROACH Gateway WA has employed many instances of innovation and creative thinking to meet the unique challenges of the project, while increasing safety and efficiency for drivers at every turn. “The introduction of the first, single-point urban interchange to the State, at Leach Highway/ Abernethy Road, was innovative for Western Australia, and the introduction of the first-ever tennis ball design configuration, as part of the Roe Highway/Berkshire
SAFETY BARRIERS WA
Safety Barriers WA has over 30 years of experience in the Civil Construction industry supporting small and large Road Building projects all over Western Australia. Safety Barriers WA supply and install Guardrail, Wire Rope Safety Barriers, Bridge Barriers and Crash Cushion systems throughout Western Australia’s public roads, mine sites and commercial properties. Safety Barriers WA have successfully completed the largest ever Road Barrier package in Western Australia on the iconic Gateway WA project with over 45,000 metres of Road Barriers, Crash Cushions, End Treatments and Top Rails. Our work crews have a long standing reputation for their professional and safe attitude on-site and are often commended by our clients. Why compromise on Safety – Insist on Safety Barriers WA for your next project. Website: www.safetybarries.com.au
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A PARTNER YOU CAN RELY ON FOR LARGE SCALE PROJECTS "Over the fourteen months of the Gateway project 55,000 cubic metres of C-Wise composted products were delivered to the project, which equates to more than 1,000 semi trailer loads."
Do you struggle to increase tree survival rates? Do you have soil erosion issues? Do you want to increase your water efficiency? Do you want to achieve a superior aesthetic for your landscape design? Let C-Wise design a solution for your needs. P (08) 9581 9582
F (08) 9581 9585 E info@cwise.com.au PO Box 2040, Mandurah WA 6210
Road interchange, was a first for Australia,” explains Spagnolo. “The innovative design at Roe Highway/ Berkshire Road was prompted as a Safe Systems initiative and it can generally be described as being similar to a roundabout under signal control but with right-turn traffic movements from Berkshire Road moving through the roundabout to and from the ramps. This type of design means the risk of 90 degree collisions between vehicles is significantly reduced, leading to an 184
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improved road safety outcome for road users, while also moving traffic through the junction in an efficient manner.” That same creative thinking helped Gateway WA stay ahead of schedule and keep workers safe, without adding undue disruptions to Perth’s already busy functioning highway system. “Gateway WA was dealing with one of the State’s busiest transport hubs and had to keep freight and passengers moving during
CONSTRUCTION
“The innovative design at Roe Highway / Berkshire Road was prompted as a Safe Systems initiative and it can generally be described as being similar to a roundabout under signal control but with right-turn traffic movements from Berkshire Road moving through the roundabout to and from the ramps.” – Ilario Spagnolo, Senior Project Director
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Roe Highway / Berkshire Road interchange at night time
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Leach Highway
construction,” notes Spagnolo. “The Alliance worked closely with Main Roads Western Australia to deliver higher standards and implement traffic management not widely used before in Western Australia.” This included the use of truck mounted attenuators and the introduction of full road closures and contra flows, which increased worker safety. A SUSTAINABLE OPTION In addition to safety, the Gateway WA project has also paid special 186
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attention to sustainability, especially where the management of its 5.9 million tonnes of bulk materials and subsequent waste was concerned. “The Alliance model on the Gateway WA project fostered fresh ideas for sustainability,” says Spagnolo. “The team looked at a wide range of perceived environmental risks that could potentially arise from construction. From there, a waste management strategy was put in place that set clear targets and goals for
AUSTRALIA
Shared path along Tonkin Highway
waste reduction from the outset. By defining what the project’s objectives were from the outset, it led to a shared vision of what waste minimisation would be on the project.� The Gateway WA project utilised several methods of waste minimisation, such as using recycled materials like quarry crusher dust and construction and demolition waste (C&DW) as fill. The project also created an onsite licensed facility to treat acid
1,000
Number of employees at peak construction
w w w. gatewaywa.com.au
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sulphate soil and degraded soil material, ensuring that its topsoil waste can be reused in other projects down the line instead of being sent to landfill. “The sustainable reuse of degraded and other unsuitable soil has many benefits, particularly from an environmental perspective,” says Spagnolo. “As well as reducing the project’s impact of sending materials to landfill, it decreased Gateway WA’s reliance on imported fill brought in for the project. This, in turn, meant less vehicle haulage and traffic congestion, which is environmentally and socially beneficial.” Gateway WA was also recognized for these efforts, chosen as the Business Category winner at the Waste Authority’s 2015 Infinity Awards for its commitment to waste minimisation on the project. The project has also garnered a prestigious certification of excellence for design by the Infrastructure Sustainability Council of Australia in 2014—one of only two road projects in Australia to earn that designation. 188
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Tonkin Highway / Horrie Miller Drive /
AN UNRIVALED IMPRESSION “From the outset, it was important to create a gateway to Perth, with an entry statement rivaling other cities in the world,” says Spagnolo. “Perth is often the first impression of Australia to international visitors, so we wanted to create something that was unique to the State and to
AUSTRALIA
Company Information PROJECT NAME
Gateway WA Perth Airport and Freight Access Project INDUSTRY
Infrastructure HEADQUARTERS
Forrestfield, WA FOUNDED
2013 EMPLOYEES
1,000 at peak construction
/ Kewdale Road interchange at night time PROJECT BUDGET
the country—to express the dynamic, creative and rapidly evolving character of Western Australia.” From its cutting-edge engineering to striking urban design, the Gateway WA project is helping Perth make its mark on the world. As Spagnolo adds, “The Gateway is something that the people of our State can be proud of for years to come.”
$1 billion
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Cali’s con
PART
LATCO SA has managed to positio construction companie
Writen by: Mate
Produced by: J
Interviewee: Ing. Luciano G
nstruction
TNER
on itself as one of the most important es in Cali and Colombia
eo Rafael Tablado
Jassen Pintado
G贸mez, CEO for LATCO S.A.
L AT C O S . A .
LATCO
’s history is relatively short but powerful. The construction company was created in 1998 by bringing together the talent and expertise of several partners. The company is known for completing projects in different sectors including housing, commercial, industrial, academic and medical, among others.
LATCO SA, helping build Cali and beyond since 1998
It was thanks to Luciano Gomez that the company was founded. Gomez was thrust into the construction sector with a position as Construction Manager for Melendez SA in 1983, a position he held for nine years. Afterward, he created Luciano Gomez and Co. Ltd., which was successfully involved in several housing projects in the city of Cali. Two years later, Luciano Gomez and Gustavo E. Gomez were recruited to create a new construction company, partnering with Holguines SA. The latter eventually ceased operations, and the Gomez’ company continued on its own, ultimately creating LATCO SA. Luciano Gomez, Manager at LATCO SA, is a civil engineer. He graduated from Purdue University (Indiana, U.S.A.), where he also earned a master’s degree in Structural Engineering. During his time in the U.S., Mr. Gomez worked as a structural engineer for Skidmore, Owings & Merrill, a leading construction firm. He returned to Colombia in the mid 1980’s.
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L AT I N A M E R I C A
Key People
LATCO SA projects are backed by ISO 9001, ISO 14001, OHSAS 18001 certifications, updated in November 2015. An ally in construction for every sector LATCO SA is responsible for much of the property development in Cali and the surrounding areas. Works such as the Valle del Pacifico Event Center (in Yumbo, north of Cali), the San Marcos Cement Plant and other works in the housing, health care, industrial, commercial and institutional sectors, among others, have been built with proper and transparent management of resources and personnel, resulting in exemplary works competed on time. As simple as some projects may seem, LATCO’s dedication and proven results are what makes this company acquire larger and more complex contracts. Current projects Recognized for its unparalleled reliability, today LATCO has won the remodeling contract for two of the most important shopping centers in Cali. Also in the works is the construction of a recreational park, brought about by one of the city’s major company’s CSR program. Despite its busy schedule, LATCO is also developing independent projects of its own. w w w. l a t c o s a . c o m
Luciano Gómez CEO for LATCO S.A.
Mr. Luciano Gomez, Manager at LATCO SA, is a civil engineer. He graduated from Purdue University (Indiana, USA), where he also earned a master’s degree in Structural Engineering. During his time in the US, Mr. Gomez worked as a structural engineer for Skidmore, Owings & Merrill, a leading construction firm. He returned to Colombia in the mid 1980’s.
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Projects of all sizes, for all sectors ... Earned prestige
New phase of the Cali airport
San Marcos Cement
LATCO was awarded the prestigious construction contract of the new international terminal as well as the remodeling contract for Cali’s Alfonso Bonilla Aragon airport.
Plant, a major feat built by LATCO SA
Productive assets LATCO SA has an array of machinery and equipment worth over US$300,000. Assets will increase even more once it acquires a small concrete plant.
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Regarding operations management, LATCO uses market leader SAP’s ERP software. This system streamlines bidding, budgets, individual project monitoring, accounting, payments, treasury, payroll and personnel tracking, and other complicated processes.
“Melendez” Firehouse
Segmented suppliers LATCO vendors are divided into two segments: material suppliers and services providers. The main products in the company’s supply chain are concrete and steel; the first of these products is
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LATCO’s purpose is t important constru southwester
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to become the most uction company in rn Colombia
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LATCO SA invests considerably to select, train, develop and integrate its workforce
Safety is a priority not only when it comes
obtained from domestic vendors such as Cemex, Holcim and Argus. Eighty percent of LATCO’s purchases are from noteworthy companies distinguished by unparalleled procedures and quality certifications, companies who cause minimal or no environmental impact and adhere to industrial safety regulations.
to tools but also employees. Meticulous safety training is provided
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For services, LATCO uses subcontractors who specialize in foundation and structure. For these services, the company prioritizes recruiting local subcontractors.
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Exterior and interior attention to detail present in each and every work
Comprehensive HR management Issues related to the workforce are critical to LATCO, with investments in this area that emphasize the following: • Personnel selection: Outsourced to a recruitment company responsible for assessments and interviews. • Training and qualification: LATCO has invested US$4.5 million since 2015, of which w w w. l a t c o s a . c o m
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“Family Entrepreneurship� is a business incentive program for families of employees
The company exercises its Corporate Social Responsibility and benefits its work force
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US$25,000 is reserved for helping employees undertake graduate studies such as master’s degrees, specializations, certifications, and professional and technical careers.
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Working environment: Since 2011, the company actively assesses determining factors in the organizational climate, guidelines and advice from SURA Occupational Risks Association. The results provide action plans to strengthen areas such as workload, developing career plans and strengthening social and organizational interaction of its employees.
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Performance evaluation: In 2015, the company received an average rating of 83 percent, surpassing 2014 results by 3 percent. The focus lies in developing and strengthening employee skills and abilities so that they are consistent with the strategic objectives.
CSR starts internally For the past four years, LATCO’s Corporate Social Responsibility (CSR) programs have focused on the development of its employees and their families. Most notably is the “Educándome” (educating myself) program, which helped twelve employees obtain bachelor’s degrees in 2015. w w w. l a t c o s a . c o m
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L AT C O S . A . The “Family Entrepreneurship� program promotes employee family businesses. It thrives thanks to the advice and support of the Valle Family Compensation Fund - COMFANDI.
LATCO is recognized by the Colombian Chamber of Infrastructure (CAMACOL)
In 2015, the company donated COP 24 billion (US$1.36 million) of which COP 16 million (US$900K) went to the ICESI University and COP 8 million (US$460K) to the Colombian Chamber of Infrastructure to foster recreation and sports programs.
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Contributions to the environment LATCO makes ongoing energy saving efforts to minimize potential impacts on the environment. A “zero waste� water system is underway and will be implemented in their facilities and processes.
Company Information NAME
LATCO S.A. INDUSTRY
The company also has strict policies regarding its management of hazardous waste and employs the services of a company specializing in this matter.
Construction, infrastructure, remodeling HEADQUARTERS
Cali, Depto. del Valle del Cauca, Colombia
The Future of LATCO LATCO SA aims to establish itself as one of the top construction companies in the Colombian southwest and is already working on acquiring projects in cities outside the country. However, present prioritizes lie in strengthening their position in the area and exploring existing alternatives that require further development.
FOUNDED
1998 REVENUE
US $90 million WEBSITE
To achieve these objectives, the company has drafted a development plan all the way through 2021.
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DEVELOPMEN
& HOUSIN IN BOLIVIAN SO Lafuente provides the lands and infrastructure to develop solid housing programs as well as the most prominent global industries
Written by: Mateo Rafael Tablado Produced by: Jassen Pintado Interviewee: Julio Novillo, President of Grupo Empresarial Lafuente
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GRUPO EMPRESARIAL LAFUENTE
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perating for over 20 years, the Lafuente Business Group is Bolivia’s most prominent real estate corporation. Lafuente conducts business mainly in the Santa Cruz de la Sierra region, the country’s most important urban, commercial and industrial center. The Lafuente Business Group consists of:
Thermoelectric plant in the Parque Industrial Latinoamericano
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• Five residential real estate development companies: o Techo S.A. o El Pahuichi o Pentaguazú S.R.L. o GEL Inversiones S.R.L. o Techo en el Urubó S.R.L.
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Key People
• Parque Industrial Latinoamericano S.R.L. (industrial real estate development) • ECCI S.R.L. (construction) • NOVI S.R.L. (electrical installation) • EMDEECRUZ S.A. (electrical distribution) Today, the Lafuente model has sold more than 125,000 lots in 22 real estate projects, with more than 25,000 acres of housing developments and 4,500 acres intended for the installment of industries, strengthening Lafuente’s commitment to satisfy the need for housing.
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Julio Novillo President of Grupo Empresarial Lafuente
Mr. Julio Novillo Lafuente has been CEO of the Lafuente Business Group since 1995. Novillo was also President of the COSPAIL Cooperative (utility services), and in 2002 was elected to Congress.
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Urubo Infrastructure, the development of El Pahuichi, a Lafuente Business Group company
Lafuente has contributed to Bolivia’s progress by providing conditions and infrastructure that attracts investment. Soon, the ambitious Nueva Santa Cruz project, a Santa Cruz de la Sierra satellite city, will further put the country on the map. Designed to be a smart city, Nueva Santa Cruz will rank among the world’s most progressive and modern cities— sure to attract foreign investment. Mr. Julio Novillo Lafuente has been CEO of the Lafuente Business Group since 1995. Novillo was also President of the COSPAIL Cooperative (utility services), and in 2002 was elected to Congress. 208
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Urubo, where dreams of today will become tomorrow’s reality
A strategic point in South America Santa Cruz de la Sierra, one of the world’s fastest growing cities, is the largest and most populous city in Bolivia today. Santa Cruz is the country’s most important city in terms of industry, production and economy. It also boasts quite competitive production costs in areas such as transport, energy, fuel and labor. Its location is ideal: sitting in central South America, it is a mere three hours or less by plane from capitals such as Bogota, Buenos Aires, Guayaquil, Lima, Santiago, and Sao Paulo, among w w w. g r u p o - l a f u e n t e . c o m
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NUEVA SA is designed Latin America’s industrial
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ANTA CRUZ d to become s financial and epicenter
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GRUPO EMPRESARIAL LAFUENTE others. It is also only six hours from Miami, a hub of the American Spanish-speaking market. Parque Industrial Latinoamericano: the epicenter of development The Korean company LH contributes to the design of Nueva Santa Cruz
Parque Industrial Latinoamericano, developing the region and currently boasting 50 percent of foreign investment
Twenty minutes from Santa Cruz de la Sierra is the Parque Industrial Latinoamericano (Latin American Industrial Park). In less than three years since development began, more than 4,500 acres and 650 lots have been enabled to accommodate about 1,500 industrial units, equipped with topof-the-line infrastructure. Almost half of these sales have been made to foreign companies. This not only shows that Bolivia can compete internationally but also reveals its appeal as an ideal location for successful investment. These factors have led to the planning of a first expansion of the project of an additional 1,000 acres. Nueva Gran Ciudad del Urubó: a higher standard of living The recent unveiling of Nueva Gran Ciudad del Urubó (Urubó’s New Great City) consists of a megaproject on 29,500 acres, of which a total of 250,000 plots of land intended for the housing market will be for sale. This project, along with the upcoming launch of the Urupé project, will boast the lowest priced
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properties on the market. Technology Lafuente relies on in-house developed management systems tailored to their needs. The group does complete urban design, from surveying to architectural and engineering designs of each project, as well as specialized systems for supplier management, property management and customer portfolio.
Nueva Santa Cruz, a smart, modern, sustainable city
Supplier selection criteria Due to the size and demands of each new development, the Lafuente Business Group has established assessment criteria and performance and efficiency measurements. The contracting process begins with looking closely at the supplier’s success in meeting work schedules and budgets. More than 50 percent of Nueva Santa
Support for the development of human resources
Cruz’s expansion will be for housing
The human factor is the key element in Lafuente’s business strategy. Much is invested into human resources for fostering employee growth. There are long-standing partners in the corporation who have grown along with their increased responsibilities.
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A three hour plane ride to South America’s major capitals, six hours to Miami, the hub of S
Training is also an important aspect. In recent years, Lafuente has supported many workers and executives’ academic education, granting college scholarships to employees.
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The social impact of the Lafuente Business Group’s projects is measured by the number citizens—mostly low-income buyers without
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Spanish-speaking America... Santa Cruz is undoubtedly the epicenter of possibilities
access to traditional financial systems—who are able to obtain housing and property. The challenge underway: the development of Nueva Santa Cruz It is estimated that work will begin on the Nueva Santa Cruz project— the construction of a new w w w. g r u p o - l a f u e n t e . c o m
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city with first-world standards—in the second half of 2016. The design and urban planning of this huge undertaking is currently underway in conjunction with globally-recognized top-level Korean companies. This is the Lafuente Group’s most important project. The City of Nueva Santa Cruz already has a blueprint. It will have a total surface of 15,000 acres: half of them targeted for residential areas; 1,700 acres for commercial and business areas; and 2,300 acres for green spaces, infrastructure and community areas. Estimates predict a community of 125,000 families and a total population of 450,000 inhabitants. Nueva Santa Cruz will be a modern and smart city, destined to become a milestone in urban development and to become the tourism center as well as the business and financial hub of Latin America.
Company Information NAME
Grupo Empresarial Lafuente INDUSTRY
Real Estate, construction, infrastructure, housing HEADQUARTERS
Santa Cruz de la Sierra, Departamento de Santa Cruz, Bolivia EMPLOYEES
750 REVENUE
US $200 million WEBSITE
www.grupo-lafuente.com
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