A p r il 2018
www.constructionglobal.com
E XCLUSIVE
ARCHITECTS OF A BR AVE NEW WORLD In a rare interview, Nakheel Chairman Ali Rashid Ahmed Lootah speaks about the developer’s past, present and future projects
TOP 10
most influential CEOs
NEWTECNIC
and embracing 3D printing
ACONEX
and the rise of Construction 4.0
FOREWORD HELLO AND WELCOME to the April edition of Construction Global magazine. This issue, we start the conversation
Such transformation has also led to what can only be described as Construction 4.0. We talked to Leigh
with Ali Rashid Ahmed Lootah, Chairman
Jasper, CEO of Aconex and a founding
at Nakheel, who highlights how the
member of the Global Industry
construction giant has created a world
Council (GIC) to discuss the rapid
class destination for living, business
transformation within construction
and tourism across the Middle East.
and why now is the time for change.
Responsible for the development
We also speak to Bjarne W. Olesen,
of the globally-famous Palm
President of ASHRAE regarding
Jumeirah, the company has become
the company’s latest sustainability
renowned for its real estate projects
developments within the HVAC industry.
which have set new standards in engineering design and creativity. New technologies are reshaping
On top of this, we’ll be rounding up the top 10 construction CEO’s of the world’s biggest construction companies,
traditional business models, and the
in addition to industry events across
construction industry is no exception.
the globe for this calendar year.
The implementation of 3D printing is one such tool which is growing in prominence. We speak with Founder and CEO of Newtecnic Andrew Watts,
As always, please tweet your feedback to @ConstructionGL
Enjoy the issue!
regarding how the technology will continue to support the industry and provide a multitude of advantages
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across the entire building process.
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F E AT U R E S
10
INSIDE NAKHEEL
ARCHITECTS OF A BR AVE NEW WORLD
C O N S T R U C T I O N S T R AT E G I E S
CONSTRUCTION 4.0
MISSION CRITICAL
36 26
EMBRACING THE THIRD DIMENSION WITH NEWTECNIC 4
April 2018
The rise of Construction 4.0
S U S TA I N A B I L I T Y
46
Sustainability
is in the air
TOP 10
56
TOP 10 CEOs construction
Events 64
E V E N T S A N D A S S O C I AT I O N S 5
C O M PA N Y PROFILES
72
Malaysian Resources Corporation Berhad Asia
102 CBRE Europe
88
AquaComms Europe
116 Etinar S.A. Latin America
130 UCEM S.A. Latin America
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INSIDE NAKHEEL
ARCHITECTS OF A BR AVE NEW WORLD
LEADERSHIP SHOWCASE
THE EMIRATI COMPANY’S CHAIRMAN, ALI RASHID AHMED LOOTAH, ANSWERS QUESTIONS ON PROJECTS PAST, PRESENT AND FUTURE Writ ten by ANDRE W WOODS
LEADERSHIP SHOWCASE NAKHEEL WAS INCORPORATED by the Dubai Government of Dubai in 2001, tasked with establishing and developing the real estate sector in the United Arab Emirates. Seventeen years later, and it’s hard to avoid this property development giant’s construction projects, large in both number and size. Ali Rashid Ahmed Lootah, Chairman of Nakheel, offers an exclusive insight on this everexpanding construction giant.
Please could you tell me a little about Nakheel and its ethos. Lootah: Nakheel is a world-leading master developer and a key player in realising the vision of Dubai for the 21st century: creating a world class destination for living, business and tourism. Nakheel was incorporated by the Government of Dubai in 2001 to establish and develop the real estate sector in Dubai, the UAE. The now globally-famous Palm Jumeirah, a unique engineering and architectural marvel, was the launchpad for many more real estate projects that have set new standards in engineering design and creativity. Nakheel continues to deliver iconic projects including 12
April 2018
master communities, individual developments and has diversified its assets base across the residential, retail, hospitality and leisure sectors in line with the Government of Dubai’s vision and the business strategy adopted by Nakheel.
The list of future and past developments is certainly extensive… Nakheel’s master developments include Palm Jumeirah, The World, Deira Islands, Jumeirah Islands, Jumeirah Village, Jumeirah Park, Jumeirah Heights, The Gardens, Discovery Gardens, Al Furjan, Warsan Village, Dragon City, International City, Jebel Ali Gardens and Nad Al Sheba Community, and together these span well over 15,000 hectares and provide homes for 270,000 people.
I see you also have a number of different divisions representing various types of developments… Residential real estate development remains our core business, but Nakheel is diversifying in a significant way. The company has hospitality, retail and leasing businesses, all of which are growing rapidly and playing a key role in
“NAKHEEL IS SET TO BECOME THE BIGGEST RETAIL DEVELOPER IN THE MIDDLE EAST THROUGH A $4.3BN EXPANSION THAT WILL ADD ANOTHER 12.5MN SQ FT OF LEASABLE RETAIL SPACE TO THE 4.6MN SQ FT CURRENTLY IN OPER ATION” Ali Rashid Ahmed Lootah Chairman, Nakheel
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LEADERSHIP SHOWCASE our ongoing business success. Nakheel is set to become the biggest retail developer in the Middle East through a $4.3billion expansion that will add another 12.5mn sq ft of leasable retail space to the 4.6mn sq ft currently in operation. Meanwhile, our $1.3bn hospitality expansion will see the delivery of 6,000 hotel rooms and hotel apartments across 17 resorts and hotels in Dubai. Two are already
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April 2018
open, with the rest at various stages of construction and development. Residential leasing is also a significant business for Nakheel. The current strategy is to double the existing number of units to more than 35,000.
What do you think Nakheel does differently to its competitors? Nakheel is a trusted master developer and is key to the development of local real estate sector. The most
“PROJECTS SPAN WELL OVER 15,000 HECTARES AND PROVIDE HOMES FOR 270,000 PEOPLE” Ali Rashid Ahmed Lootah Chairman, Nakheel distinguishing feature for Nakheel is that the business has the expertise to cover all stages of a project from initial planning to interior design, through to operational management. Nakheel has created spectacular landmarks, distinctive residential communities and unique retail and tourism-related destinations,
which have helped put Dubai firmly on the map as a city of the future. Nakheel has added some 300km of coastline to Dubai, delivering globally-recognised developments in the process. Our project locations – waterfront or inland – all continue to play a major part in our success. Nakheel remains firmly committed 15
“NAKHEEL CONTINUES TO DELIVER ICONIC PROJECTS INCLUDING MASTER COMMUNITIES, INDIVIDUAL DEVELOPMENTS AND HAS DIVERSIFIED ITS ASSETS BASE ACROSS THE RESIDENTIAL, RETAIL, HOSPITALITY AND LEISURE SECTORS IN LINE WITH THE GOVERNMENT OF DUBAI’S VISION” Ali Rashid Ahmed Lootah Chairman, Nakheel
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LEADERSHIP SHOWCASE to being an integral part of the Emirate’s ambitious expansion plans, launching an exciting range of new projects that will enhance our existing communities and attract residents, tourists and investors to the fastest-growing city in the world.
Do you work with any partners at all? If so, what is the nature of those collaborations? Nakheel has strategic alliances with business partners who share the vision of Dubai and Nakheel. For example, we have joint ventures with some of the world’s leading names in hospitality, including RIU Hotels & Resorts and Centara Hotels & Resorts, as well as hotel management agreements with major hospitality management companies such as Marriott, AccorHotels, Hilton, Minor Hotel Group, Whitbread and many more under consideration.
embraced innovation in real estate development. Innvovation has also taken centre stage in Dubai where there is a strong emphasis on adoption of technology in day-to-day governance, and Dubai is leading the initiative in adoption of newer technology for the general wellbeing of its citizens and residents alike.
What initiatives have you brought in to boost profits or cut costs? We have strengthened corporate governance and enforced stricter financial discipline, which, together, have assisted in robust financial performance to date. In addition, rigourous planning, close monitoring and periodic review of the business strategy and increasing use of technology have all contributed to the financial and operational success of the business.
How important is innovation to your market and business?
Could you tell me about your team – number of employees, expertise, and training opportunities offered?
Innovation is key to both Dubai and Nakheel. The world-famous projects of Palm Jumeirah, The World and the upcoming Deira Islands are examples of how Nakheel has
Nakheel currently employees 1,300 staff who together make one successful team. The management team is led by the CEO who is assisted by various divisional heads 17
LEADERSHIP SHOWCASE that all are supported by the CFO, the CTO and a General Counsel. The HR division is involved in all aspects of staff development including training, ensuring that employees have the opportunity to improve their skills and experience throughout their career with Nakheel.
drive and ability to deliver – into senior postitions in which they can take a greater responsibility within the leadership team in the future.
What importance do you place on people?
Dubai is growing. Its population is expected to double by 2030; it is the host city for Expo 2020 and has an ambitious but achievable tourism target of welcoming 20mn visitors a year by 2020. All this creates a need for more houses, hotels, schools and
Employees are the greatest asset for any business. Nakheel places particular emphasis on developing young, talented UAE nationals – who continue to prove their commitment,
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April 2018
How healthy is the construction industry in the ME at the moment? We can see lots of projects and investment…
PALM 360 is an iconic two tower development on Palm Jumeirah’s Boardwalk, comprising of a luxury hotel, branded residences and the world’s largest sky pool
other real estate related assets. In addition, the core economic sectors of trade, travel and tourism are doing incredibly well. This is good news for the construction industry in Dubai. Nakheel itself has $14bn of projects under way and awarded construction contracts worth over $2bn in 2017. And, just a few weeks into 2018, we have awarded signed a construction contract for $1.1bn for Deira Mall, the biggest mall in the Middle East in terms of leasable space, and a $105mn contract for an 800-room beach resort being developed in a joint venture with RIU Hotels & Resorts.
Obviously, Dubai is making massive inroads in establishing itself as a centre of tech excellence… Dubai is very much geared to using smart technology to enhance services, making processes userfriendly and facilitating more business opportunities, and we fully endorse and support the government’s quest to transform Dubai into the world’s smartest city. Dubai has always taken the initiative of leading a change in the region and, in particular the GCC. The smart city initiative is a game changer for Dubai as it will showcase its ability to adapt 19
LEADERSHIP SHOWCASE
“PROJECTS SPAN WELL OVER 15,000 HECTARES AND PROVIDE HOMES FOR 270,000 PEOPLE” Ali Rashid Ahmed Lootah Chairman, Nakheel
to new technology and be extremely beneficial for the people of Dubai. A number of projects are already underway and most government services are now based on use of technology, reducing the human interface and contributing to increased productivity and efficiency in governance. The Dubai government has appointed a young, talented and an aspiring Emirati to the post of the Federal Minister for Artifical Intelligence. These steps are reflective of the vision of the UAE leaders who are keen to take bold steps to lead the way in adopting technology in day-to-day life. The next three to five years will be very interesting and beneficial for the UAE and Dubai, as the nation once again demonstrates its ‘can do’ attitude.
Which project are you most proud of? I am immensely proud of all of our projects, but Palm Jumeirah stands out as the one not only recognised the world over, but which has also set new standards in innovative engineering. We are now building on the success of Palm Jumeirah to create Deira Islands, another waterfront city that is set to become Dubai’s newest tourism, leisure and entertainment hub. When it comes to individual projects, our forthcoming PALM 360 is already witnessing keen interest from investors and customers. It is a 260m tall twin tower comprising a Raffles hotel and Raffles branded residences, including penthouses spanning more than 1,100 sqm. Its highlight is the world’s largest rooftop infinity 21
LEADERSHIP SHOWCASE pool – three times the length of an Olympic pool, 170m above ground. As the name suggests, PALM360 will offer all-round views of Dubai and going by the interest expressed so far by various customers, it is likely to be the most sought-after locations to live and visit in Dubai.
Quality control is clearly important to your operations. How do you maintain your high standards throughout your operations and your supply chain? In our business, the supply chain
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April 2018
is contractor-driven, but we keep a very close watch on all of our operational activities, from inception to delivery. Many factors, including energy conservation, green building policies and best practices are taken into account.
I see from your website that there is a plethora of CSR initiatives‌ CSR is an important DNA of Nakheel. These activities are essential and a means of giving something back to the people of the UAE, improving
the socio-economic prosperity of the nation and contributing to the welfare of the region and the world as a whole. The CSR activities range from essentials schemes like blood donation drives to supporting government initiatives that promote health, wellbeing and education. The latest example is Nakheel’s sponsorship of a new government e-learning scheme to translate maths and science material from 5,000 English videos and 11mn words into Arabic in order
to provide free online educational material to over 50mn young Arab students by the end of 2018.
Do you have expansion plans in place and if so, what form do they take? Nakheel continues to expand into the hospitality and retail sectors. The investment in these sectors currently stands at around $6bn. Geographically, the focus continues to be in Dubai, although Nakheel is presently exploring advisory and project management opportunities overseas.
“THE LATEST EX AMPLE IS NAKHEEL’S SPONSORSHIP OF A NEW GOVERNMENT E-LEARNING SCHEME TO TR ANSLATE MATHS AND SCIENCE MATERIAL FROM 5,000 ENGLISH VIDEOS AND 11MN WORDS INTO AR ABIC IN ORDER TO PROVIDE FREE ONLINE EDUCATIONAL MATERIAL TO OVER 50MN YOUNG AR AB STUDENTS BY THE END OF 2018” Ali Rashid Ahmed Lootah Chairman, Nakheel
Photo: (Left to right) Vice President, Prime Minister and Ruler of Dubai, His Highness Sheikh Mohammed bin Rashid Al Maktoum and Mohammed Abdullah Al Gergawi, Secretary-General of the Mohammed Bin Rashid Al Maktoum Global Initiatives Foundation Ali Rashid Lootah, Nakheel’s Chairman
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CONSTRUCTION 4.0
EMBRACING THE THIRD DIMENSION WITH NEWTECNIC Newtecnic CEO Andrew Watts explains how the multi-disciplinary structural engineering expert is utilising 3D printing on global projects to design and deliver bespoke faรงade and MEP solutions for the industry Writ ten by DAN BRIGHTMORE
CONSTRUCTION 4.0 THE WORK TAKEN on by pioneering structural design firm Newtecnic has developed out of façade design, where the high value work in complex projects is traditionally found. “We now work from the first concept with some of the world’s leading architects on bids for global projects, right through from structural engineering plans to completion on-site, offering a full MEP (mechanical, electrical and plumbing) service,” says Newtecnic’s Founder and CEO Andrew Watts. “That gives us a deep understanding of the whole process and the different mindsets of design teams and contractors. We take on challenging projects where there is no obvious answer on how to build with a standard existing system. We don’t have that loose-fit proprietary product collage of options. We have to meet tight budget constraints so we develop our own systems for structure, façade and MEP from first principles, which often means we also do shop drawings on construction – either working with the architect from the tender stage or on-site with the contractor.” Newtecnic’s work is supported by 28
April 2018
university engineering departments, allowing it to do research and development across every project. “We do the hardcore thinking early on,” maintains Watts. “It can be a high-risk strategy because if the project doesn’t go ahead we can lose a lot of money.” Newtecnic has a London office supported by the Cambridge University Engineering Department where systems are developed and tested. Meanwhile, in the US, Newtecnic has opened four nationwide offices at leading universities, each with a unique skillset linked to an elite university: LA to UCLA Engineering; Silicon Valley to Stanford University; Texas to the University of Texas at Austin; Atlanta to Georgia Tech. These, along with the Glass & Façade Technology (gFT) Research Group and Innovate UK, are important partnerships for Newtecnic. The company works on projects where there’s a strong architectural vision linked to the urban design and the social environment in which the building is located, such as London’s Great Ormond Street Hospital and Morocco’s Rabat Grand Theatre. “We provide engineering design to support
“At its most basic level, when panels are damaged on-site 3D printing allows for materials to be renewed without waiting weeks for replacements” Andrew Watts CEO of Newtecnic
the vision of the architect and generate our own technologies in order for the building to be as authentic as possible,” confirms Watts. Newtecnic has been appointed by main contractor, BACS Consortium, to oversee the construction stage of the highly complex façade envelope of the King Abdullah Financial District (KAFD) Metro hub in Saudi Arabia, designed by Zaha Hadid. KAFD’s intricate facade, representing patterns generated by desert winds, was design engineered by Newtecnic to reduce solar gain and produce air currents to help cool the building by developing new algorithms to achieve this performance level. Planned to deal with Riyadh’s expected 50% growth over the coming years, KAFD is part of a new citywide transport system comprising six metro lines, 85 stations and more than 100 miles of track. The project is due to be completed this year and features self-supporting, 200m-long, high performance concrete-composite walls and roof. To produce the structure, new adjustable building components and fixing methods had to be invented, developed and tested by Newtecnic in partnership with the Cambridge 29
CONSTRUCTION 4.0 University Engineering Department. “We’re using 3D printing throughout the KAFD project to show how 3D assemblies will fit together and provide a superior technical solution to deliver both ease of fabrication and construction, allied to long-term durability,” reveals Watts. “With 3D printing we’re able to combine up to 50 machines and processes into a single task or output, whereas with previous mock-ups it was just about simulating the production process by introducing all the steps – drilling,
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cutting, bending, coating. The speed of 3D printing allows you to iterate the design and improve it from a manufacturing point of view, and has seen us move away from the need for a big scale workshop and instead use a machine linked to the design itself.” He believes it’s an interesting time in the industry, moving away from repeated approaches, while manufacturers in engineeringbased industries are implementing mass customisation with the dawn of machines able to respond to a complex string of commands to make
building components and assemblies we’ve seen in other industries such as aviation and transport. “Once we know how something can be made, it tells us what composite materials we can exploit with our bespoke approach to make panels, for example, and understand the capabilities of the way we’re making it and how it can be installed,” says Watts. “We design from scratch with façade systems alongside connections for structures which are going to be exposed inside the building that need to look good. Most of our energy goes into the envelope systems as those are the most technically complex in the range
KAFD Metro blueprints
of performances they need to achieve for water-tightness, wind resistance, seismic loads etc. Part of what we do is to develop technologies where each component can do two jobs.” This approach has its genesis in Formula 1 – in the 1960s Graham Chapman’s Lotus was famous for using the engine as the structure at the back of the car so there was no frame or chassis and the wheels were fixed directly to the engine. “Those are the kinds of economies we’re looking to find to reduce the amount of time it takes to make something,” explains Watts. “We’re also looking to adjust the installation sequence to reduce the time it takes to assemble a structure on site and address a major cost component. We don’t want to develop something to be technically superior for its own sake, but to reduce cost and add quality – the ‘less is more’ aesthetic.” Newtecnic’s on-site construction labs are responding to the shift in construction from the current trend of everything being factory based, and 3D printing is a big part of that. “On complex projects of high ambition, large scale and even 31
CONSTRUCTION 4.0 larger expectation, there’s a need for some of those tasks to return to site,” confirms Watts, who highlights the benefits 3D printing can offer. “Ongoing assemblies require on-site testing where parts of the building can also be made using 3D printing. At its most basic level, when panels are damaged on-site it allows for materials to be renewed without waiting weeks for replacements. As well as checking the output and validating what is installed, the construction labs can provide a cost saving by producing small components and key assemblies. It’s not about moving the entire factory to site – though things
may progress that way in the future – it’s a way of keeping the construction process moving forward with that infrastructure available at the job site.” So what trends is Watts seeing in the industry that can support and complement the implementation of 3D printing? “All buildings of any note are becoming mass customised in their design approach and 3D printing supports that,” he says. “In addition to 3D printing and multi-layered routing and cutting machines controlled by computers that can do multiple tasks on one assembly, there is the gradual introduction of robots or cobots (collaborative robots) where
“I am proud that Newtecnic is in the vanguard of a technological movement that solves many of the cost, environmental, energy, logistics and waste problems that the industry faces” ANDREW WATTS CEO of Newtecnic
workers can use a machine – just on a bigger scale than a hand drill. Once that cobot is able to carry its own drill and move around we’ll see big changes in the way buildings are assembled with the assistance of a machine that can lift the panels on small scale operations.” Today, we rely on cranes to work to millimetre precision in a hierarchy of machines down to that hand drill, but the future envisaged by Watts will see cobots working in conjunction with one another in a network of equipment. “Robots will be able to inspect a structure and then inform 3D printers directly without the need for new drawings in each new scenario,” he reveals. “We will move away from paper and towards working directly with a 3D model so the design of assemblies will change to respond to the needs of those cobots. Panels will become steps for them to climb up and access the fixing points at each successive step of the installation as structure becomes more geared to the interplay between our machine colleagues and the building. The design will start to respond to the needs of the machines that create them.”
KAFD design concept 33
3D printing is playing a crucial role in the KAFD project
Watts highlights the benefits 3D printing can offer to validate a design by breaking down a building into a kit of parts to check feasibility. This moves towards reducing cost by optimising, but does require a cradle to cradle approach of interaction with a building. “We’re interested in building production becoming a controlled, engineered process rather than a group of linked trades coming together,” he says, adding that while a loose 34
April 2018
fit approach might offer flexibility, it requires expensive interfaces between those loose fit processes. “Because buildings are currently loose fit items there is less onus on the need for a perfect fit in the early stages, so 3D printing currently has a limited application,” admits Watts, looking to the future. “But once building assembly starts to become interconnected and parts can be more easily replaced without threatening assembly integrity, 3D
CONSTRUCTION 4.0
printers will become the means of providing a building’s virtual twin.” He concludes: “Like a constantly updated digital user manual, all the information required to construct and operate buildings, and their interconnected machines, and systems can exist within the building’s 3D digital-twin simulation model. This is available on the cloud for investigation, examination and testing at any time from the earliest design stage. Concepts for robots
and drones are included together with manufacturing, construction and disassembly instructions and methods. The merging and blending of these advances indicates that construction is on the cusp of a revolution, and I am proud that Newtecnic is in the vanguard of a technological movement that solves many of the cost, environmental, energy, logistics and waste problems that the industry faces.” 35
MISSION CRITICAL
The rise of Construction 4.0
Leigh Jasper, CEO of Aconex and a founding member of the Global Industry Council (GIC), discusses the rapid transformation within construction and why now is the time for change
Written by MARK SPENCE
MISSION CRITICAL AS THE CONSTRUCTION industry continues to modernise at an incredible rate and seeks out new ways to collaborate, what are the implications of such rapid transformation? What do businesses really need to know about increased digitisation and technological adoption? And just what are the barriers preventing the industry from keeping pace with innovation in other sectors such as manufacturing? It is questions such as these that form some of the most important talking points within construction today and their answers could provide the insight that will represent a future that is costeffective, time rich, technologically secure and sustainable. As CEO of Aconex, the world’s most widely used cloud collaboration platform for construction, engineering and infrastructure projects, Leigh Jasper is well positioned to interrogate, and help navigate, the shifting landscape of the construction industry. IN THE BEGINNING Starting out over 15 years ago, Aconex’s mission was to digitise, 38
April 2018
streamline and automate the way businesses approached their construction projects. Fast forward to the modern-day construction industry and Jasper has noticed a sea change in attitude towards digitisation and technology. “When we started we focused on more basic processes in the industry, but what has happened in due course is that a wave of digitisation has gone through construction,” Jasper tells us. “What we do with our customers now is to help them digitise their supply chain
“When we started we focused on more basic processes in the industry, but what has happened in due course is that a wave of digitisation has gone through construction” LEIGH JASPER CEO of Aconex
and their various processes. These days that includes everything from document distribution to drawings and plans, 3D modelling, managing 3D design and all the various elements that go with that, as well as workflows and processes around approvals. All of this is happening pretty rapidly in construction at the minute.” At the forefront of this rapid learning curve is the increased move towards digitisation – and it’s clearly having a tangible impact. Would Jasper agree that such trends are making things like the supply chain more visible, for example? “Absolutely,”
he says emphatically. “Looking back to the hard copy days, if I produced a design, I’d have to get various pieces of information approved by numerous different parties then it would go off to multiple engineers before it would come back to me. It’s hard to maintain visibility of where everything actually is in that process.” As part of the move towards digitisation, Aconex and Jasper have identified cybersecurity as another area that bears closer scrutiny. The low rate of tech adoption in the industry impacts an organisation’s growth and revenue, but it also
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MISSION CRITICAL highlights that cyber safe security most likely needs to be incorporated into its processes. It’s this desire to help businesses that led, in part, to Jasper becoming involved with the Global Industry Council (GIC). THE GIC Beyond the need for increased supply chain visibility, universal use of digital cockpits and tighter budget controls, Jasper maintains there are other elements that need to be considered for better project management. To help businesses better understand these requirements, Jasper was instrumental in the formation of Global Industry Council. “The GIC was all about bringing together the very biggest companies and leaders in the construction and engineering space to work out what issues were facing our industry and how we could deal with them.
THERE WERE FIVE KEY AREAS THAT WE DISCOVERED • Integration across the eco system – mainly how do you integrate different companies and use digital tech to do that much more effectively? • Standardisation – how do I make sure I have processes that have consistency and a standard way of doing things across the industry? • Digital talent – how do you build the right talent for your organisation? • Adoption – once you start on a path or a vision around a digital future you then have to drive tech adoption. • Return on investment – this is the toughest one. How do you show that investment in digitisation is paying off?
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April 2018
“The GIC was all about bringing together the very biggest companies and leaders in the construction and engineering space to work out what issues were facing our industry and how we could deal with them� LEIGH JASPER CEO of Aconex 41
HEADING IN THE RIGHT DIRECTION Clearly digitisation and technology adoption are going to require a change management process, and that will take a number of years, but is the construction industry making strides in the right direction? And what do businesses need to do to keep pace with the likes of manufacturing sector? “It’s about the repeatability of processes. If you think about manufacturing, there’s a production line and a set of suppliers who will deliver products over a period of time. But what happens in construction is that it’s all very bespoke. Every 42
April 2018
project is different,” says Jasper. He also adds that, as far as digitisation goes, it’s not purely about processes: “For example, with manufacturing you can control the environment because a lot of it is happening in a plant and you can set up production lines etc., but in construction it’s different,” he tells us. “Say you’ve got a project in the centre of London. You have very little control over that environment because you have to interact with government, the general community and the site itself. You may have different sites too, so how do you
MISSION CRITICAL get the digitisation out to each of your sites?” While all of these elements feel very much like challenges, Jasper views them more as opportunities for greater change. “Construction is one of the lowest adopters of IT, so why don’t we lift the general 1% or 2% spend on it to 5% and we’ll see a massive benefit to the industry.” A TIME OF CHANGE With Industry 4.0 and increased implementation of machine learning, AI, drones, sensors and predictive analytics, it’s an exciting time to be involved in construction, according to Jasper. More than that, he’s keen to dispel the idea that people within the industry are reluctant to adopt technology. “Look at mobile phones. People in construction were some of the first to start using them. These are practical people so if you can show them something works they’ll get on board. These are people who are rapidly changing with the industry because they can see the benefits.” Finally, by way of a word of caution, Jasper does suggest that increased adoption of tech, including cybersecurity, is key to businesses surviving. “We’re seeing some companies going out of business because they didn’t have control of their projects. Digitisation is also about mitigating risk and that’s one of the biggest problems you can face in our industry – when a project goes off the rails. Anything you can do that will give you visibility will save you time and money.”
“We’re seeing some companies going out of business because they didn’t have control of their projects. Digitisation is also about mitigating risk” LEIGH JASPER CEO of Aconex
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S U S TA I N A B I L I T Y
Sustainability
is in the air
We talk with Bjarne W. Olesen, President of ASHRAE, on the latest sustainability developments in the HVAC industry Written by DAN BRIGHTMORE
S U S TA I N A B I L I T Y WITH MORE THAN 56,000 members spanning 132 countries, it’s fair to say ASHRAE has seen it all when it comes to HVAC (heating, ventilation and air conditioning), and is more than qualified to live up to its motto: “Shaping tomorrow’s built environment today”. ASHRAE was formed as the American Society of Heating, Refrigerating and Air-Conditioning Engineers by the merger in 1959 of the American Society of Heating and Air-Conditioning Engineers (ASHAE), founded in 1894, and The American Society of Refrigerating Engineers (ASRE), founded in 1904. ASHRAE’s President Bjarne W. Olesen reveals the organisation’s continued success relies on strong partnerships that allow it to foster collaboration and offer guidance. “Alongside the Air-Conditioning, Heating, and Refrigeration Institute (AHRI) and the US Department of Energy (DOE), we have collaborated to fund vital research to expedite findings and establish a more robust fact base about the properties and the use of flammable refrigerants,” says Olesen. ”This $5.2mn investment will provide the technical knowledge needed to 48
April 2018
facilitate and accelerate the safe use of these refrigerants as well as identify any additional climate-friendly alternatives. Of the total, DOE is contributing $3mn, ASHRAE $1.2mn and AHRI $1mn.” Allied to this, ASHRAE and UNEP (United Nations Environment Program) have paired up to launch new eLearning courses to help developing countries better understand and implement the Montreal Protocol as it relates to conventional and low-GWP refrigerants. ASHRAE also develops partnerships through its Associate Society Alliance (AASA) which brings more than 60 HVAC&R (heating, ventilation, air conditioning & refrigeration) societies from around the world together to unite the global built environment. “AASA creates a powerful force addressing global issues such as climate change and indoor air quality and allows us to speak with a larger, more influential voice on the global stage,” asserts Olesen, who believes ASHRAE are taking the lead in developing tools to look at new and existing facilities to see if they are performing as intended. He notes this trend towards supporting sustainability in the industry is not just from a HVAC
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“Cost definitely should not be a barrier. Consider the life cycle of a building. The initial construction cost is only 2%, with 6% representing the operational costs and only 1% representing the energy costs. The largest cost is the building occupant (indoor environment) and their behavior� BJARNE W. OLESEN President of ASHRAE 49
S U S TA I N A B I L I T Y standpoint, but focused on total building operation. “Also, data analytics and big data solutions have gained popularity within the HVAC industry as equipment becomes more digitised. Data analytics effectively improve processes that maximise human comfort, air quality, energy efficiency and preventative maintenance of HVAC systems,” he adds. ASHRAE provides support for the construction industry with six certification programs. Among these, its High-Performance Building Design Professional (HBDP) is an ANSIaccredited certification programme that validates competency to design and integrate sustainable HVAC&R systems into high-performing buildings. What is the biggest challenge to meeting this need? ”Cost definitely should not be a barrier,” maintains Olesen. “Consider the life cycle of a building. The initial construction cost is only 2%, with 6% representing the operational costs and only 1% representing the energy costs. The largest cost is the building occupant (indoor environment) and their behaviour. Understanding occupant behaviour will help our industry improve designs to reduce 50
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ASHRAE in numbers
FOUNDED IN 1904 56,000 MEMBERS ACTIVE IN 132 COUNTRIES
energy consumption in building and better meet occupants’ needs.” To rise to this challenge Olesen believes what sets ASHRAE apart from other professional societies and associations in the industry is a robust research programme. ”ASHRAE’s Handbook series, technical programs, standards, and special publications all utilise the results of research conducted through ASHRAE funding,” he says. “We conduct timely research on a global scale to remain the foremost, authoritative and responsive international source on the interaction between people and the indoor and outdoor environment through the operation of HVAC&R systems in buildings and other applications.” ASHRAE recently received the prestigious Partnership Award from the UNEP Ozone Secretariat for its
S U S TA I N A B I L I T Y I S I N T H E A I R
Video: ASHRAE: Shaping Tomorrow’s Built Environment Today “extraordinary commitment and contribution to the progress and achievements of the Montreal Protocol on Substances that Deplete the Ozone Layer”. It has also released an Advanced Energy Design Guide for K-12 School Buildings – Achieving Zero Energy, the first in a series of guides tailored to the design and creation of zero energy buildings. The guides are being developed in conjunction with the American Institute of Architects (AIA), the Illuminating Engineering Society (IES) and the US Green Building Council (USGBC) with support and funding from the DOE through the National
Renewable Energy Laboratory (NREL). ASHRAE also published its Green Guide to help unify industry efforts. However, Olesen admits there is much more education needed: ”While commercial buildings may look quite similar around the world, there are huge differences in residential buildings in both design and building technologies. Therefore, it is impossible to establish guidelines that cover the breadth of residential buildings worldwide. “However, we are facing this challenge head on. One way we will extend this effort is by enabling regions or chapters to develop locally-specific 51
S U S TA I N A B I L I T Y guides with support from our Technical & Standard Committees and headquarters. We need to obtain a much better understanding of occupant behaviour so we can address it in design, control and user feedback, as it significantly influences both the indoor environment and energy usage.” What are ASHRAE’s sustainability
goals for 2018 and beyond? “We expect NZEBs (Nearly Zero Energy Buildings) by 2030. That goal is within reach,” pledges Olesen. “But it will take a concentrated effort by partners representing every sector of our broad, global industry. Europe appears to have embraced the vision earlier and has a head start on making that vision
“The HVAC industry has an opportunity to serve as a catalyst to building owners and designers, encouraging the achievement of sustainability goals. An ASHRAEcertified building provides builders credible, reputable recognition in the marketplace” BJARNE W. OLESEN President of ASHRAE 52
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a reality. Energy costs in Europe are much higher than in the United States, which created an economic driver for their success, a success that needs to be applauded. Asia is moving rapidly towards an NZEB future, but probably has the most ground to cover for a variety of reasons. A compelling argument can be made that our significant successes over the past nine years shows conclusively that we are on the right path and that the goal of an NZEB future is attainable.” To that end, ASHRAE has unveiled a powerful energy management tool. Building Energy Quotient (Building EQ) accurately and reliably evaluates the energy use of a building and compares that energy use to a similar building stock in a similar climate zone. “Building benchmarking and disclosure is a necessary first step in this process so building owners know with precision how much energy their building is using and its potential for further energy conservation,” explains Olesen. “Once an owner is empowered with this knowledge they can make informed decisions consistent with their needs and expectations.” Highlighting the dramatic decrease in photovoltaic pricing and advances in
battery technology in the automotive industry, Olesen points toward a future where electrical energy will be produced inexpensively on an immense scale, further enhancing sustainability: “Coupled with advances in building information modeling software, technology will allow us to design, construct, operate and maintain buildings at much lower energy levels to achieve NZEBs while maintaining the needed levels of human comfort and indoor air quality.” Olesen predicts that technology, and the increased use of renewables, will be the biggest drivers of the HVAC movement towards sustainability. “ASHRAE will play a key role in accelerating the use of innovative technologies,” he confirms. “As a global society with members all over the world, we can provide and disseminate knowledge from one part of the world to be used the world over. The HVAC industry has an opportunity to serve as a catalyst to building owners and designers, encouraging the achievement of sustainability goals. An ASHRAE-certified building provides builders credible, reputable recognition in the marketplace.” 53
> Energy Smart | Stockholm March 13 2018 // The Brewery Conference Center
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RESPONDING TO THE DIGITAL INFRASTRUCTURE ENERGY CHALLENGE The Energy Smart Summit is part of a global series which brings together leaders from the world of energy networks and from the digital infrastructure ecosystem in one of the world’s most energy aware cities for a very big discussion on the future. Lead sponsor:
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TOP 10 CEOs in construction A LOOK AT THE PEOPLE IN CHARGE OF THE WORLD’S BIGGEST CONSTRUCTION COMPANIES, BASED ON REVENUE Written by MARK SPENCE
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T OO T PP 1 01 0
MARTIN BOUYGUES BOUYGUES
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XU ZHENG
SHANGHAI GROUP CONSTRUCTION
With revenue of around $21.26bn, the Shanghai Group Corporation Ltd employs 33,160 people and was incorporated back in 1998. Xu Zheng is the current chairman with Hang Yingwei acting as President. 58-year-old Zheng was also previously President, General Manager and Director of the Shanghai Construction Group. Aside from his time at the group he was an Assistant Manager and Manager of another Shanghaibased construction firm and also holds an MBA (Master of Business Administration). www.scg.com.cn
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Martin Bouygues is the youngest son of Francis Bouygues, the man who founded the company back in 1952. Martin joined the business in 1974 as a works supervisor before rising through the ranks to the position of Vice Chairman of the Bouygues Board of Directors in 1987. In 1989, he took over from Francis Bouygues as Chairman and CEO of Bouygues. Today the Paris-based company has an annual revenue of $32.26bn and employs 118,000 people. www.bouygues.com
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CEOS IN CONSTRUCTION
FLORENTINO PÉREZ RODRÍGUEZ ACS
GUO WENQING
CHINA METALLURGICAL
With revenue of $34.3bn and 100,290 employees, this Beijingbased company deals mainly in engineering contracting, real estate, resources development and equipment manufacturing. Guo Wenqing is the current Chairman and has been with the company in various roles since 2008, but has been in his current position since April 2015. He also holds a Bachelor’s (BBA) and a Master’s in Business Administration (MBA).
Actividades de Construccion y Servicios SA (ACS) is based in Madrid and has a revenue of $39.21bn. The group is involved with mining, civil works and building works, both residential and social and has been headed up by CEO, Florentino Pérez Rodríguez, since 1997. A businessman, civil engineer and former politician, Rodriguez is also famous outside construction circles thanks to his position as President of Real Madrid Football Club.
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www.grupoacs.com
www.mcc.com.cn
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YAN ZHIYONG POWER CHINA
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XAVIER HUILLARD VINCI
Vinci SA is a construction and engineering company based in France with a current revenue of $47.04bn. Huillard was appointed Deputy General Manager of Vinci in March 1998 and was Chairman of Vinci Construction from 2000 to 2002. He became Director and Chief Executive Officer of Vinci in 2006 and was appointed Chairman of the Board of Directors and Chief Executive Officer in 2010, before taking up his role as Chairman of Vinci Concessions in 2016. www.vinci.com
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The Power Construction Corporation of China Ltd has a revenue of $38.72bn. It was incorporated in 2009 and currently has 134,680 employees. It is based in Beijing where it is led by current Chairman Yan Zhiyong. Zhiyong earned his Bachelor’s degree from the College of Water Resource & Hydropower of Sichuan University and his Master’s degree in engineering from China Institute of Water Resources and Hydropower Research. He is also a member of the National Energy Advisory Committee.
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CEOS IN CONSTRUCTION
ZHANG ZONGYAN CHINA RAILWAY CONSTRUCTION CORPORATION LTD
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LIU QITAO
CHINA COMMUNICATIONS CONSTRUCTION COMPANY LTD.
China Communications Construction Co Ltd has a revenue of $66.88bn. The company’s headquarters is in Beijing and its current Chairman/Executive Director is Liu Qitao. China Communications Construction Co. Ltd. deals in the design and construction of transportation infrastructure, dredging and heavy machinery manufacturing. The construction aspect of the business is involved in the infrastructure construction of ports, roads, bridges and railways. www.ccccltd.cn
China Railway Construction Corporation Ltd generates $99.41bn in revenue. The company’s headquarters is in Beijing. Zongyan has been its Chief Executive Officer since July, 2015. He also served as the President of China Railway Construction Corporation Limited from March 2013 to July 2015 and was Vice President from April 2009 to March 2013. He has in-depth knowledge of extensive operations and management experience in the PRC construction industry.
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LI CHANGJI
CHINA RAILWAY GROUP
China Railway Group Ltd has a revenue of $102.32bn. The company mainly deals with infrastructure construction but is also engaged in survey, design, consulting, manufacturing equipment and real estate development. Changjin has been serving as Chairman of the Board and Executive Director in China Railway Group Limited since 2010 and also serves as Chairman of the Board and General Manager in its shareholder company. Changjin holds a Master’s degree from Southwest Jiaotong University, China. www.crecg.com
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GUAN QING
CHINA STATE CONSTRUCTION ENGINEERING
China State Construction Engineering Corporation Ltd. has a revenue of $160bn. The company mainly deals with construction contracts of buildings, infrastructure construction and investment, real estate development and investment, energy, survey and design and municipal utilities. They are headed up by Chairman Qing Guan, who has also been the Deputy General Manager since 2016. He also presides as Chairman of the Board and General Manager at two other companies. english.cscec.com
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E V E N T S & A S S O C I AT I O N S
Events The biggest and best events and conferences from around the world‌ Writ te n by AN D R E W WOO DS
E V E N T S & A S S O C I AT I O N S
Future Cities Show 2018
Dubai World Trade Centre, Dubai, UAE 9-11 April The second edition of the Future Cities Show is based on the 17 Sustainable Development Goals, which were set by the United Nations and adopted by 193 countries in September 2015. The Future Cities Show is a platform for local and international institutions from various industries to showcase their latest technologies that are going to redefine the way we live. The show will focus on three pillars: sustainability, innovation and happiness. There will be over 19,000 visitors and 100-plus exhibitors across 141 countries. www.futurecitiesshow.com 66
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The UK Infrastructure Show 2018 Birmingham NEC, UK 17 April Officially supported by CompeteFor and many major ongoing and future infrastructure projects, the UK Infrastructure Show 2018 provides participants with a unique opportunity to engage, connect and collaborate with a vast array of key projects, decision makers and influencers representing all areas throughout the supply chain. www.ukinfrastructureshow.co.uk
National Construction Summit 2018 Citywest, Dublin, Ireland 2 May The third annual National Construction Summit welcomes over 2,000 construction companies, developers, policy makers, project owners and government bodies to ‘stimulate debate, enrich knowledge and connect stakeholders’. Topics of debate will include planning, facility management and energy efficiency, plus many, many more. www.nationalconstructionsummit.ie 67
E V E N T S & A S S O C I AT I O N S
The World Green Building Council Congress 2018 Toronto, Canada 3-7 June Titled “Building Lasting Change with WorldGBC Congress Canada”, the event will see Green Building Councils, international speakers and delegates from five regions of the world (Europe, Africa, MENA, the Americas, and Asia-Pacific) combine with CaGBC members, enabling Canadian delegates to showcase local expertise to international attendees to encourage collaboration, innovation and business exchange. www.worldgbc.org
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Webit.Festival Europe 2018 Sofia, Bulgaria 26-27 June Part of EU Digital & Innovation Week, Webit.Festival Europe 2018 is gathering EU policy makers, global business leaders raging from Fortune 500 top executives to worlds most impactful and promising founders and entrepreneurs and academia to re:Invent Europe’s Future. There will be over 7,000 attendees from 100-plus countries, including 1,500 top policy makers from all over the globe as well as entrepreneurs, investors, scientists and digital economy shapers and representatives from Europe’s most promising startups. www.webit.bg
London Build 2018 Olympia National, London 23-24 October London Build is the leading construction show to cover London and the south of England. London Build unites an incredible range of highlevel attendees involved in construction, architecture, infrastructure and design in London to discuss a wideranging source of issues relating to every aspect of the industry. www.londonbuildexpo.com 69
E V E N T S & A S S O C I AT I O N S
The Buildings Show
Metro Toronto Convention Centre, Canada 28-30 November Canada’s largest exposition, networking and educational event, The Buildings Show is the leader in sourcing, networking and education in Canada for the design, architecture, construction and real estate communities. The Show is home to Construct Canada, HomeBuilder & Renovator Expo, PM Expo, STONEX Canada, World of Concrete Pavilion. More than 30,500 trade professionals attend the show annually to discover new innovations across the building industry and source the latest materials, products, tools and technologies from more than 1,600 Canadian, US and international exhibits. Through the show’s comprehensive seminar programme, attendees can choose from 350-plus seminars, keynotes, summits and roundtables led by a roster of 500-plus industry experts. www.thebuildingsshow.com 70
April 2018
Construction News Awards 2018 Grosvenor House Hotel, London, UK 12 July 2018
The Construction News Awards are back, celebrating 22 years of rewarding the very best companies and individuals in construction. Hundreds of global companies with combined revenues of more than $148bn will enter the Construction News Awards to hae their work recognised as the best in the infrastructure, property and residential sectors. http://awards.constructionnews.co.uk
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With the recently completed redevelopment of the Kuala Lumpar Sports City complex, Malaysian Resources Corporation Berhad sets the standard for the nation’s construction sector Written by Dale Benton Produced by Mike Sadr
ALAYSIAN RESOURCES CORPORATION Berhad (MRCB) stakes a worthy claim to be the pioneering force behind Malaysia’s construction industry. A key player in some of the largest transitoriented construction projects throughout Malaysia, including the first of its kind mini-city Kuala Lumpur Sentral CBD and the recently completed rejuvenation of KL Sports City, MRCB prides itself on its ability to provide more than just a project. “A lot of the projects that we do, due to their size, have an economic multiplier and aid in the building initiatives across Malaysia,” says Amarjit Chhina, Chief Corporate Officer, MRCB. “Building transportation and mass rail infrastructure in the country also creates spill over economic value; it takes cars off the road, aids productivity and gets people from A to B much more efficiently.” Predominantly an urban transit orientated developer, MRCB’s developments are planned at the onset with concepts and objectives that seek to promote and enable direct integration of all city-like needs in order to create an “enriched and self-sustaining development”. It is a model that the organisation implements across all of its projects and developments, and Izza Salim, Chief Operating Officer, feels that it is this easily replicated model that defines MRCB as a construction company of choice. “This model can be replicated and adapted anywhere as it allows the primary ideas and concepts to remain and drive the design and construction,” she says. “But it 74
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The public are able to use the complex at any given time
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The national sports complex in Bukit Jalil, includes the national sports stadium, aquatic stadium, hockey stadium and the indoor Axiata Arena
The KL Sports City venues hosted the Southeast Asian Games in 2017
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WE ARE
S Y R A H R E S O U RC E S L I M I T E D
A SOLID FOUNDATION OF TURNING SMALL ACTIONS INTO BIG GAINS
Founded in 1996, we are a construction services company based in Malaysia with over 20 years of operating history and are principally engaged in provision of a wide range of construction services. The group was founded with a mission to pursue sustainable engineering models in a competitive resource-heavy sector. BGMC stand today as a builder of good repute positioned to make our mark beyond Malaysian shores. On the back of a solid trajectory of growth, the Group listed on The Stock Exchange of Hong Kong Limited (HKEX) on 9 August, 2017. Our successful listing in Asia’s financial centre places us at an advantage to leverage the Belt and Road Initiative, paving the way into key Southeast Asian markets for accelerated growth. Concession & Maintenance will be a priority in coming years to sustain long-term cash inflow. Meanwhile, we will be increasing our assets through acquisition of more advanced machinery and technology. We will also be strengthening our portfolio through collaboration, partnership agreements, or merger and acquisition. Ultimately, BGMC stands for a sustainable future where our people, clients, and surrounding communities can thrive for generations to come.
2.0
www.bgmc.asia
THERE ARE THOUSANDS OF WAYS TO BUILD WE ARE JUST GOOD AT FINDING SMARTER AND FASTER WAYS TO DO IT.
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“ Building transportation and mass rail infrastructure in the country also creates spill over economic value; it takes cars off the road, aids productivity and gets people from A to B much more efficiently” The indoor Axiata Arena
– Amarjit Singh Chhina, Chief Corporate Officer, MRCB
The stadium blueprint can also provide enough flexibility to the project, Chhina believes it truly adapt to its surrounding needs, market represents MRCB’s status as a catchment and existing accessibility.” pioneer and a true example of that A shining example of MRCB’s “spill over” economic value. portfolio is the aforementioned “It’s attracted some major multiKL Sentral project. An example of national companies to have a footprint innovative design, planning and in Malaysia,” he says. “Google, PwC, execution, KL Sentral is an exclusive Shell, General Electric are but a few urban centre built around the largest who have set up shop here. This is transit hub in Malaysia. certainly something that has never Even with MRCB still developing been done before. w w w. c o n s t r u c t i o n g l o b a l . c o m
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“ Google, PwC, Shell, General Electric are but a few who have set up shop here. This is certainly something that has never been done before and I don’t think there will ever be a transitoriented development as comprehensive as this” – Amarjit Singh Chhina, Chief Corporate Officer, MRCB
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Another one of the company’s most significant, and most recent projects was the rejuvenation of the KL Sports City. Originally built for the Commonwealth Games in 1998 and selected to host the Southeast Asian Games in 2017, significant redevelopment was required in order to ensure this huge complex would not only comply with the more modern health and safety standards, but also modern sporting standards. Following the successful bid for
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tender, MRCB was given the task to redevelop the national sports complex in Bukit Jalil, including the national sports stadium, aquatic stadium, hockey stadium and in the indoor arena (known as the Axiata Arena) situated in the vicinity. No easy task, and one that MRCB also took upon itself to go above and beyond delivering a simple rejuvenation.
“The upgrade also included an extensive revamp on the landscaping and public spaces,” says Salim. “The overall idea was to integrate and link existing facilities, i.e. public transportation, amenities, parking, to cater for large masses of population at a single time. “The main focus was to provide accessibility and convenience for the
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The Bukit Jalil National Stadium is a world-class venue public, enabling anyone and everyone to use the complex at any given time, not just for events but for daily use.” That everyday use, going beyond being simply a sports venue for only major events, is crucial to the value that MRCB can bring not only to a project but to the wider Malaysian economy. As a development, KL Sports City is much more integrated than what is typical of a development project like this. One only has to look at developments in place for events such as the World Cup in South Africa, or the London 2012 Olympics to see the question raised; what is the legacy of these projects? This is something that Chhina is all too aware of. ““One of the main objectives of the transformation was to create a self-sustaining development for the Government,” he says. “It incorporates corporate boxes, which it never had before, with the aim of generating more incremental revenue streams moving forward. This will only continue into the future, infusing more sport content, food and beverage content, training facilities, sports injury clinics, all as a means of increasing that value and w w w. c o n s t r u c t i o n g l o b a l . c o m
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expanding the complex well beyond what it was before.” For a project of this size and scope, a construction company is often given a timeframe close to 36 months to deliver. For the KL Sports City complex, MRCB was given 18. At the time of completion in 2017, the company can proudly say that it was successfully delivered in just 15 months that allowed the country to host the South East Asia 2017 games. But what is the secret to this success?
After all, MRCB was renovating a 20-year-old complex to cater for current and future needs based on international standards, all within a much shorter timeframe. And it did so with the pressure to remain on or under budget and the responsibility to develop a national project that would bring the eyes of Southeast Asia and the world down upon it. In order to achieve this, MRCB called upon a number of specialist contractors and design specialists
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The complex has been created not just for events but for daily use from all over the world, including the global architecture and design firm Populous. Populous, responsible for some of the largest sport complexes in the world including the Yankee Stadium and the London Olympic Stadium, played a crucial consultancy role in MRCB’s delivery of KL Sports City. “Populous brought with them incredible experience from all over the world and that really helped us in terms of remaining within budget and avoiding pitfalls that could lead to long delays,” says Chhina.
“With this project we had hundreds of people working at once, consultants and contractors all under one umbrella and so our experience in working to this scale proved key, particularly in planning.” Fast forward 15 months and in late August 2017, the 30th annual Southeast Asian Games drew to a close at the newly redeveloped Bukit Jalil Stadium. Over the course of 11 days, KL Sports City saw thousands of attendees and performers pass through the whole complex, the success of the project highlighted for the world to see. But the success didn’t just stop w w w. c o n s t r u c t i o n g l o b a l . c o m
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“ Over the last 20 years we have been fine tuning and achieving greater standards and heights in terms of our development capabilities” – Amarjit Singh Chhina, Chief Corporate Officer, MRCB
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there as the complex was short-listed for the World Architectural Awards in Berlin. Selected amongst 17 shortlisted finalists, from thousands of global nominations, MRCB can be extremely proud of this recognition. “We can say to ourselves that of course it’s a really good project,” says Chhina. “Others have seen it’s a real boost to our reputation. It shows that 86
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we are capable of delivering large scale projects like this on time and on budget. That’s what, as an organisation, we strive to achieve every single day.” MRCB has a simple vision. “Setting the standard”, reads the company’s motto and through the development and successful delivery of projects such as the KL Sports City, as well as KL Sentral, it is a vision that the
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The Stadium Bukat Jalil illuminated beautifully in the evening
The stadium now caters for corporate hospitality
S. Nalgunalingam on the modernisation and expansion of the stadium facilities company continues to strive to achieve, not just for today’s construction, but also tomorrow’s. “At our core we are an engineering company,” says Chhina. “Everything we do, be it building a corporate HQ, transportation infrastructure or a stadium, we approach it as engineers. We come up with solutions to problems.” This is a sentiment echoed by Salim.
“Over the last 20 years we have been fine tuning and achieving greater standards and heights in terms of our development capabilities,” she says. “We will continue to adapt and cater to the needs of the modern day and to the future.”
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EUROPE
AND THE UNDERWATER CONNECTIVITY REVOLUTION
The demand for connectivity is heavily impacting the subsea cable industry. Chief Executive Officer Nigel Bayliff discusses Aqua Comms’ involvement in this growing market and its aim to connect both sides of the Atlantic
Wr i t t
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ugha a V s i w therine S e t u r m a n Pro d u c e d by L
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THE TELECOMS INDUSTRY has undergone something of a subsea revolution. Whilst subsea cables built 30 years ago were both expensive and time-consuming, they were also only built for telephone calls between corresponding operators on either side of the ocean. The partnership of US operators such as AT&T, Sprint and Verizon, as well as European operators British Telecom, France Télécom, Deutsche Telekom and others enabled the development of subsea cables which could handle increased volume of calls. However, with private entities deployed across the Atlantic, it was international provider Cable & Wireless which built a private cable to America in a bid to sell capacity to smaller operators emerging in Europe. Providing a competitive threat to the pricing of telephone calls, the space for providers to privately build infrastructures and sell them in alignment with the life of the cable was born, and filtered into the development of the internet. Impacting the way undersea cables are designed, the internet fuelled a consumer demand for connectivity. With an increased need to send low-speed data over a telephone call-style channel, the launch of 9.6kb dial-up modems created a crossover, where providers sought to turn a telephone-capable cable into a data cable. Despite this, whilst the number of consortiums and telcos sought to build cables to cater to this rapid demand, the dot.com bubble burst and led to not only an oversupply, but a subsequent crash within the telecoms sector. “There were competing organisations with brand new 90
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Nigel Bayliff, Aqua Comms’ CEO speak s to JSA TV
cables across the Atlantic and a market which had dwindled. Speculators came in and bought the assets, which had cost hundreds of millions to build, for just tens of millions,” explains Nigel Bayliff, Chief Executive Officer at Aqua Comms. “Suddenly the private equity markets and the general banks lost a lot of money in that very strange period of history. “Today, there remains a 20% price decline model used for the price of a particular piece of capacity in the Atlantic. At the same time, people have managed to stay in business because the growth that was forecasted in 1999 has started to occur,” he continues. w w w. c o n s t r u c t i o n g l o b a l . c o m
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“At Aqua Comms, demands are roughly doubling every two years. There is a huge data flow now, many orders of magnitude bigger than they were 20 plus years ago.”
INFRASTRUCTURE AS A SERVICE (IAAS) Established in 2011, Aqua Comms seeks to monetise undersea assets by taking capacity from one shore to the other side of the ocean, delivering high quality services at lower costs. With 20 employees with up to 25 years’ experience each, it presently houses up to 100 target customers, which are mostly global telecoms carriers. “We don’t sell to banks or engineering firms. Neither do we go into the enterprise layer and break up the capacity on our layer into smaller pieces,” says Bayliff. “We sell big, high-capacity pipes between major interconnections sites either side of the Atlantic to people who go out into the metros and the communities and supply consumers and enterprises with telecoms services. “We operate as a carrier’s carrier and sell, effectively, infrastructure as
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Technology has changed dramatically, and our new cable can do at least 24 terabits per fibre pair, at a lower operating cost
” –N igel Bayliff, Chief Executive Officer, Aqua Comms
a service,” he adds. “Our investors are mostly infrastructure-grade and they are looking for a long-term return on the capital deployed, which is a pretty different world to 1999, when it was mostly private equity making a play on what might happen in the high-tech market.”
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into subsea cable systems. Whilst the number of cables built around 2001 are now coming to the end of their economic life, the growing need for capacity is enabling Aqua Comms to lead the way in the subsea fibre-optic network industry. “Cables which I built in the early 2000s are approximately four terabits (Tb) per fibre pair. Technology has changed dramatically, and our new cable can do at least 24 Tb per fibre pair at a lower operating cost,” acknowledges Bayliff. “The challenge is to cope with the massive growth of capacity requirements, but not to grow your costs at the same rate as the capacity growth, because the price is in decline.” Upon joining Aqua Comms in late 2016, Bayliff has worked to monetise the company’s subsea fibre-optic cable, AEConnect, in the carrier market in both Europe and the US. “We own two cables. One goes from western Ireland to New York (AEConnect), and one goes from Dublin to Holyhead in Wales, which was built about six years ago, called CeltixConnect-1,” notes Bayliff. 94
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“ The challenge is to cope with the massive growth of capacity requirements, but not to grow your costs at the same rate as the capacity growth,because the price is in decline
” –N igel Bayliff, Chief Executive Officer, Aqua Comms
“We’re now in a phase where we’ve stabilised the company and paid back all the construction costs of that original cable.“
ENHANCED DESIGN In order to remain ahead of the competition, Aqua Comms has deployed significant investment in both the design of its cables, and what it can offer its customers. Through its Spectrum Services, users are able to partake in ownership economics and technological improvements in end user equipment over the life of a particular cable.
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5,250km of cable being laid between Ireland and the USA
Aqua Comms was established to provide capacity networking solutions to content providers, cloud-based networks, data centres, IT companies and the global media. By building, acquiring or merging with subsea fibre optic networks, the company provides the systems which will cover the needs of tomorrow, today.
“We sell 100 gigabits (GB). If you keep this for 10 years, it will be 100GB. Spectrum allows you to get underneath that layer and own part of the physical transmission bandwidth across the fibre and add new parts to that technology over the course of ownership,” says Bayliff. “At the end of 10 years, that channel might be able to deliver 400GB because of improvements in technology. You start to see the benefit of a different grade of investment in the telecoms supply. “Below that is the fibre pair, where you get the ability to put whatever you want on the end of it. There are lots of innovative companies, like Ciena, Infinera and Xtera. They are always coming up with new generations of Spectrum management capability and improving the capacity of each fibre pair as they go. So, you’re latching into that ability when you buy Spectrum,” he continues. The importance of speed has also been addressed. Previously, cables were at risk of the light becoming obscured across the route of the cable, creating errors in signal. This would also reduce the transmission w w w. c o n s t r u c t i o n g l o b a l . c o m
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bandwidth which could be utilised. By implementing specialist types of fibre, the use of coherent detection now provides a cleaner way of detecting the signal on arrival at the receiving station, therefore removing the need for complex management. “High-powered amplifiers boost the light signal, and the fibre is the same all the way across,” observes Bayliff. “It’s a new design of a large effective area fibre optics, which provides increased power and bigger bandwidth.” Furthermore, Aqua Comms has placed significant investment in its cable 96
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security, where its two biggest threats are fishing within shallow water areas, and also where ships anchor through its strengthened design.
HAVFRUE CONSORTIUM The company’s CeltixConnect-2 cable will seek to provide an additional secure route from Ireland and the UK in its bid to cater to a growing surge in demand. It will also link to its current subsea cable across the Irish sea, named CelixConnect-1. “There are big carriers who have a lot of business in Ireland and want dark
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fibre so that they can operate their own network. Dark fibre is sold to big carriers or content players such as Facebook, Google, Amazon, Microsoft, etc,” explains Bayliff. “Our second cable will also connect to the Isle of Man, so we will connect Dublin with Blackpool, and we’ll also branch into the Isle of Man itself, bringing our services to the gaming and financial management companies.” The company’s growing connection with the data centre and cloud market will accelerate business growth. It’s decision to join the HAVFRUE consortium will bring a multitude of advantages for the business. The new cable will connect New Jersey and the US to Ireland and Denmark, with connectivity options in Norway. Once completed, Aqua Comms will own approximately a third of the cable’s capacity to market and sell capacity services. “We are working with people who we know and who don’t compete with us, because they buy capacity for their own private use,” observes Bayliff. “The cable will branch into the west of Ireland and join up with our existing
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High-powered amplifiers boost light signal, providing increased power and bigger bandwidth
” –N igel Bayliff, Chief Executive Officer, Aqua Comms
cable. Once completed, we will have fibre optic capability to deliver massive capacity. These fibres carry 20-plus Tb per fibre. We will be able to do that in a ring-based structure between Europe and Ireland, and Ireland and the US, which is a very resilient path for data-centred traffic and general telecoms traffic. “This route is important, as it goes directly to Denmark, which means that these will be the two northern cables in the Atlantic,” he continues. “The cost to build them is prohibitive, unless you have a good market to off take that cost.” w w w. c o n s t r u c t i o n g l o b a l . c o m
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“It’s also important to me as the north of Europe is cold and electricity is cheap. Those are two of the key design criteria for these mega scale data centres. Companies want low cost of electricity and as much natural cooling as possible. The third thing they need is connectivity. “We really are aiming to connect the data centre and the cloud centres on either side of the Atlantic.” “Ireland has the unique position because of its tax rate and its hightech workforce. It has enormous data centres for Apple, Amazon, Microsoft, Google and Facebook already established. Connecting the three big places where data centres will develop over the next five years was a very good strategic move for us,” adds Bayliff. “We can also enter Sweden and Finland and pull through traffic that comes up from Russia and China, which travels into Frankfurt. All of those northern European locations are where the traffic flows will come onto our cable and, obviously, help us monetise it.”
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REMAINING PRODUCTIVE Working with international companies, as well as smaller enterprises, has enabled Aqua Comms to build a strong, global network and close-knit relationships with its partners. Working with INOC in particular has seen the company eradicate any issues within its network operation centres (NOCs), where the company has put up walls up between Aqua Comms’ data and knowledge
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processes, which is kept in house. “Our network operations process manager, who effectively commands what the NOC does, is the ex-process lead for Deutsche Telekom’s Global Network Factory, which was one of the industry’s best deployment of electronic network management in Europe and, in fact, the world,” says Bayliff. “Although the NOC has all the tools, they’re directed in how to do that by an internal resource. We have people in our company who can then provide second and third line technical assistance and direction to the vendor in the event of any serious or complex situation. “It’s a good partnership because INOC have a large operation in Madison, Wisconsin in America, but they’re able to flex the resource they deploy on our account as and when we need it.”
FUTURE TRENDS The subsea cable industry will continue to grow but, interestingly, Bayliff believes that dynamic services will be the ones to watch. Whilst streaming
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Once completed, we will have fibre optic capability to deliver massive capacity. We will be able to do that in a ring-based structure between Europe and Ireland, and Ireland and the US, which is a resilient path for data-centred traffic and general telecoms traffic
” –N igel Bayliff, Chief Executive Officer, Aqua Comms
services such as Netflix will drive traffic across domestic networks, there are other areas of focus which will determine the need for data on a global scale. “Services which will really drive connectivity will be interpersonal, dynamic, high-data services such as video calling. Video, WhatsApp, or posting a Facebook Live video uses significantly more capacity. It is a random event and there’s two billion w w w. c o n s t r u c t i o n g l o b a l . c o m
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There are big carriers who have a lot of business in Ireland and want dark fibre so that they can operate their own network
” –N igel Bayliff, Chief Executive Officer, Aqua Comms
random users of Facebook who might all decide to do things at different times. The dynamism is very important and that’s where we keep an eye on the trends,” observes Bayliff. “Certain trends we are looking out for especially is augmented virtual reality (AVR). If you take video as being a unit of one, virtual reality (VR) is about 6.7 times the data rate. So, if you then go to AVR, you’re another 10 times the data rate.” Additionally, people’s assumptions that there remains enough capacity will need to be addressed long-term. 100
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Whilst in the 1990s there were constricted channels of bandwidth, and a lot of research undertaken in how to get increased richness of communication in the same bandwidth, this has since been eradicated. “I receive between 15-17 megabits per second (Mbps) on my BT broadband, but on mobile I get 24 Mbps on Vodafone 4G. There’s an assumption that it’s effectively limitless and we won’t need to bother, which means people will use more communications, which translates into more international bandwidth,” comments Bayliff. Consequently, Aqua Comms will remain a specialist and focused company which will work to provide customers with access to IaaS at all levels for both carrier content and media industries. “We are not a full-service telco, so we don’t try to sell to the same people as they sell to,” concludes Bayliff. “We’re trying to provide the backbone and the North Atlantic bridge for data centre and cloud business growth over the next decade and beyond.”
Aqua Comms traffic is doubling every two years, with 41% approx. CAGR of data usage Aqua Comms monetises undersea assets by taking capacity from one shore to the other side of the ocean, delivering high quality at lower costs. Bayliff has worked to monetise subsea fibreoptic AEConnect Cable with the carrier market in both Europe and the US. Through its Spectrum Services, users are able to partake in technological improvements in end user equipment over the life of a particular cable. The company’s CeltixConnect cables will provide a secure route in Ireland and the UK in its bid to cater to a growing surge in demand. Working with INOC in particular has eradicated any issues within its network operation centres (NOCs).
Kevin Foley, Chief Financial Officer
Nigel Bayliff, Chief Executive Officer
Andy Hudson, Chief Network Officer1 0 1
REVO LUTI O NI real estate supply chains with a state-of-the-art supplier portal Written by Laura Mullan Produced by Richard Durrant
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Unveiling its trailblazing CBRE MySupplier platform, the real estate giant is set to meet the supply chain demands of the future
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ransforming the supply chain of the world’s largest real estate services company is no easy feat, but thanks to its innovative thinking and technological ingenuity CBRE is making it look easy. With acquisitions of Norland Managed Services and Johnson Controls GWS under its belt, the Californiabased company has undergone a mammoth supply chain transformation in recent years. Thanks to these purchases CBRE now offers a diverse range of real estate services which gives the firm the platform to not only guide businesses about how they should invest their money, but also how they should run a building – whether that means advising them on their space management or actually running the facilities for them. B E S P O K E S U P P LY C H A I N S Despite such far-reaching changes in its supply chain, one thing has remained the same at CBRE – its commitment to its customers. Anna Williams, EMEA Supplier Engagement Director, says that the
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ANNA WILLIAMS EMEA SUPPLIER EN GAG E M EN T D I R E C TO R
Williams has over 10 years’ experience in senior supply chain roles, spanning a number of industries including Facilities management, Rail, Pharmaceutical, Construction and Professional Services. In her eight years at CBRE, she has worked in different supply chain functions and currently oversees the Supplier Engagement and Compliance Programmes. In this role, she has designed and worked on the development of CBRE’s industryleading Supplier Portal, CBRE mySUPPLIER.
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COLLABORATION /kelabe’reijn/ noun
A purposeful relationship in which all parties strategically choose to cooperate in order to achieve shared or overlapping objectives.
The CBRE Combustion Partnership is a collaborative partnership comprising of CBRE and a group of their preferred suppliers and manufacturers, this ensures delivery of a consistently high standard of quality, innovation & value in all aspects of commercial gas and heating services to their client.
Delivering engineering excellence www.jdservicesltd.co.uk Info@jdservicesltd.co.uk Tel: +44 (0)1322 315588 JD Services (JDS) are specialists in the design, installation, commissioning, service and maintenance of air conditioning and Heating services. With expert advise and response to match any of your service requirements.
UKS
Keeping the Customer in Focus
Keeping the Customer in Focus www.uksouthservices.com Info@uksouthservices.com Tel: +44 (0)1252 549 272
UKS delivers its customers, a smooth and seamless experience from survey to job completion through our paperless management system. We oer responsive, dynamic, knowledgeable and tailored solutions to our customers through our Operations team.
Maintaining our excellent reputation within the service industry www.protech-heating.com Info@protech-heating.com Tel: +44 (0)141 771 9567 We specialise in high quality bespoke technical solutions, for all types of heating / water systems and complex boiler and burner applications delivered by a professional team focused on customer care and excellent client communication.
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company’s downstream business model is vital to this customer-centric ethos. By not centralising its procurement activities and offering bespoke supply chains to its customers, CBRE ensures that the spotlight is truly on its customers’ needs and wants. “I think what gives us a competitive edge is that we treat each supply chain as an individual organisation,” Williams explains. “We take our time to understand our supply chain. We make sure it fits within each of our client’s requirements and we offer bespoke supply chain partners rather than having a one-size-fits-all solution. “I think that helps us to create a worldclass solution for our clients and it also makes suppliers want to work with us because we recognise their core skills and competencies across
“I think what gives us a competitive edge is that we treat each supply chain as an individual organisation” A N N A WI LLIA MS, EMEA SUPPLIER EN GAG E M EN T D I R E C TO R
CBRE’s supply chain transformation has been a customer-focused one
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geographical areas and utilise them,” she adds. The real estate market is a fiercely competitive one, but CBRE distinguishes itself by also offering sector-specific solutions. “We operate across a wide range of sectors such as industrial, healthcare, life sciences, heritage, stadia and education,” notes Krys Stanton, Supply Chain Solutions Director. “Our strategy is to tailor the supply chain to the sector so that clients know they’re buying into a company which is not only a reputable brand but also understands the sectors that it’s operating in.” A DIVERSE R ANGE OF SUPPLIERS With both its global footprint and bottom line set to soar, the company has gained a well-earned reputation as a market leader in commercial, leasing, investment sales, and residential project managing. Such renowned success has come about for a culmination of reasons, but it can partially be traced to the way CBRE works with both large corporations and SMEs alike. “This means if the client has requirements to use local suppliers or diverse suppliers such as women-owned businesses. We can adapt the supply chain to make sure they’ll get what they want,” Williams says. “On the other hand, some clients may want to use international players, so we also adapt to that to ensure that we offer a
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R ACH EL LEE V P, G L O B A L S U P P LY C H A I N T R A N S F O R M AT I O N
Lee has over 30 years' experience in senior supply chain roles in the UK, New Zealand and Australia, spanning a number of industries including Facilities management, FMCG, Pharmaceutical, Retail, Manufacturing, Telecoms, IT and Airport management. In her 10 years at CBRE, she created the supply chain function from green fields, integrated key acquisitions, and established the supply chain team as a critical business partner. In this role, she has built an industry-leading approach to supply chain management which sets CBRE apart from its competitors in the FM market.
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solution tailored to the customer.” A L E A D I N G S U P P L I E R P O R TA L With a global spend in excess of $50bn provided by more than 85,000 global suppliers, delivering a revolutionary supply chain transformation was by no means a simple task. To take on such a mammoth function, CBRE looked to the marketplace to find a supplier portal which would help it streamline its operations and drive operational excellence. When it couldn’t find one, it made CBRE MySupplier. This digital tool isn’t an
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off-the shelf-package – it was specifically designed by CBRE, and it is this innovation which has been the cornerstone of the company’s supply chain journey. Whether it’s making the firm’s supply chain more transparent, encouraging supplier engagement or offering supplier feedback, it seems the leading compliance tool has elevated the firm to new heights. “Our supply chain strategy involves not consolidating or solely spending with big suppliers,” explains Rachel Lee, VP, Global Supply Chain Transformation. “We continue to use SMEs to fully support our local customers and that means we have a huge network of
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suppliers that we work with in Europe. We wouldn’t be able to manage such a large network without our supplier portal. This is a problem that many other companies have, and nobody’s solved it until now. “This means we’re putting decisionmaking back into the hands of our client teams rather than a centralised procurement function making the decisions,” she continues. “We’re giving business managers the tools they need to make the right decisions around which suppliers to use.” C O M M I T T E D TO C O M P L I A N C E Compliance is one of the most deeprooted challenges in the supply chain discipline today and with a broad footprint spanning across continents, CBRE has ensured this
“We build relationships with all suppliers, small, medium, or large. It's not a process, it's not SRM in its theoretical term, it's about how we deal with suppliers on a dayto-day basis. SRM to us is a real living and breathing philosophy that everybody is involved in, it's not just a process run by the procurement function, it's our dayto-day business” R ACH EL LEE, V P, G L O B A L S U P P LY C H A I N T R A N S F O R M AT I O N
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portal adapts to local language and legislation requirements. Already launched in the UK, the portal is now set to roll out in Europe, the Middle East, Africa and Russia (EMEAR) and by the end of this year, it will be linked to the company’s ERP system to ensure its supply chain is fully compliant. Going a step further than other portals in the market, CBRE MySupplier also acts as an engagement portal. It allows suppliers to understand CBRE as a business, who they need to contact to help with their business development and how they can attend CBRE’s renowned events. Transparency, engagement and feedback are just three ways in which CBRE MySupplier is helping the firm wholly transform its supply chain capabilities. The portal also provides suppliers with feedback to see if they
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are performing well, how they could improve, and how they compare to their market competitors. “Suppliers receive their performance rating and this allows them to see how they rank against other suppliers in their field or marketplace,” explains Lee. “It sets up a competitive environment. If a supplier wants to win more business in CBRE, they know what they need to do because they can see how they’re ranking against their competitors in our portal.” Contending with the ever-increasing pressure to achieve savings and sustain supplier relationships, the global property firm has taken a relationship-driven approach to its supply chain function. As a result, it has invested capital in creating a supplier engagement team, which is responsible for not only managing compliance but also managing relationships with CBRE’s suppliers. S U S TA I N I N G S U P P L I E R R E L AT I O N S H I P S Embedded in the company’s fabric
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is a commitment to developing deep and long-lasting relationships with vendors. Therefore, the team meets with suppliers at company events to keep them updated with the latest CBRE knowhow. “Supplier relationship management (SRM) is generally approached with large suppliers only because it takes quite a lot of investment from both sides,” explains Lee. “We take a different approach. We build relationships with all suppliers, small, medium, or large. It’s not a process, it’s not SRM in its theoretical term, it’s about how we deal with suppliers on a dayto-day basis. SRM to us is a real living and breathing philosophy that everybody is involved in – it’s not just a process run by the procurement function, it’s our day-to-day business.” CBRE’s technological ingenuity is exemplified by its leading supplier platform, CBRE MySupplier, and for
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Lee, Williams and Stanton, it is this genuine commitment to developing supplier relationships which gives the company a competitive edge and allows it to offer leading supply chain solutions to its clients. “We want to make sure our clients recognise that we’re a world-class supply chain function,” explains Williams. “We want clients to come to CBRE to outsource their real estate needs to us not just because of our own in-house
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capability, but also because of how we manage the supply chain on their behalf. Our supply chain has experienced growth with CBRE. From a supplier perspective, it’s been a positive journey. Even our small SME suppliers have come on a journey with us and as we grow through acquisition, we’re moving forward and upholding our best-in-class approach.”
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K R Y S S TA N T O N S U P P LY C H A I N S O L U T I O N S D I R E C TO R
Stanton joined CBRE in November 2013 as the Procurement Director for the UK Services Division and has recently been promoted to Supply Chain Solutions Director for UK and Ireland. He is responsible for defining and supporting the strategic development of the Procurement function within the business and is focused on four key priorities; developing downstream procurement capability, service quality, continuous client benefit and innovation. Stanton joined CBRE from another key FM provider where he led the Soft Services category management team and was responsible for delivering global procurement strategies that provided assurance and continuous improvement of client value. Previous roles include heading up the procurement function for a UK wide care sector business and managing M&E in the water industry.
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ENGINEERING ECUADOR’S FUTURE
WITH VITAL
INFRASTRUCTURE
PROJECTS Etinar engages in the kind of high profile building works able to transform cities and the lives of thousands of Ecuadorians
COSTA BRAVA BUILDING
Written by Mateo Rafael Tablado Produced by Jassen Pintado Interviewee Guillermo Jouvin, CEO for Etinar S.A.
ETINAR S.A.
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tinar’s history traces back to 21 September 1973, when it was registered by engineer José Macchiavello Almeida. The company’s main goals are engaging into civil engineering and public infrastructure projects for urban and rural areas. However, it didn’t take long for the company to add another purpose to its agenda: to engage in important projects, the kind that drive a positive change within the area they are built. Etinar works for three main sectors: public works, private investors handed turnkey projects, and also as developers and marketers for its own projects, delivering mostly residential properties to end users. Company structure allows Etinar to take part and deliver in different kinds of projects (industrial, housing, large buildings, commercial, public works) from different angles, acting also as consultants to thirdparty design/architecture studios, managing projects from finished designs or designing from scratch with its own specialised staff. “Our company deals with
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managerial and technical infrastructure, enabling us to design any kind of project. We build and then we market; these are the company’s strongholds,” comments Guillermo Jouvin, CEO for Etinar. Jouvin graduated in Business Administration from Eckerd College (USA) and afterwards earned an MBA from Universidad Técnica Federico Santa María (Ecuador). Since joining Etinar in 1999, he has been in charge
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of financial planning, management, finally becoming general manager 16 years ago. Previously, he worked for La Universal’s confectionery business and in different positions for La Reforma, which used to be Ecuador’s largest toilet paper company. Projects of unique significance Etinar is usually engaged in the kind of projects that will shape or re-shape a certain area or city,
PT. SANTA ANA (GUAYAQUIL)
“THE BOARDWALK BECAME A LANDMARK AND CORNERSTONE OF AN URBAN REGENERATION MOVEMENT IN GUAYAQUIL, THE REST OF ECUADOR AND IN OTHER SOUTH AMERICAN CITIES ” – Guillermo Jouvin, CEO for Etinar S.A. w w w. c o n s t r u c t i o n g l o b a l . c o m
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FLOPEC HEADQUARTERS (ESMERALDAS) projects with uniqueness, such as: • UNASUR building (Union of South American Nations, in Quito). A historical high-complexity project with unique architecture and engineering. The project was built in 2014 in the “Middle of the World City”, near Quito, with an outstanding 164 ft long cantilever with no support beams at
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all, the second largest of its kind in the world. “This was undoubtedly a major challenge, which is why we we got involved. We were attracted by the building’s complexity. We are the only construction company in our country and South America that has ever built something like that,” Jouvin remarks. • Malecón 2000 (Guayaquil).
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BARCELÓ SALINAS HOTEL The beautiful boardwalk along the Guayas River was developed along with the city council (at the time led by now deceased Mayor León Febres Cordero) during very tough times for Ecuador’s economy. “The boardwalk became a landmark and cornerstone of an urban regeneration movement in Guayaquil, the rest of
Ecuador and in other South American cities, afterwards,” Jouvin states. • Hotel Barcelona (Salinas). Ecuador’s traditional middle-class summer seaside resort increased its reputation as new infrastructure projects transform the city into an important leisure destination.
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MALECÓN 2000 (Guayaquil boardwalk)
“WE TRY TO REMAIN AT THE CUTTING-EDGE OF CONSTRUCTION PROCESSES” – Guillermo Jouvin, CEO for Etinar S.A.
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A focus on housing For company-driven projects, Etinar is in charge of design, engineering, marketing, financing and sales. These constructions are aimed mainly toward housing developments, also benefitting other sectors such as healthcare and hospitality. Outstanding projects include: • Terranostra (Guayaquil). Terranostra offers 1,200 units for middle-class families, with prices in the US$120,000 to $380,000 range. The complex includes a shopping centre, artificial lakes, social club and sports courts. A hotel will be built inside its confines. Terranostra is currently at 60% completion. • Ágora (Guayaquil, under construction). Ágora will consist of four towers: one for residential and corporate use, the second for doctor offices and healthcare-related services, the third for a hospital, and fourth for a hotel. The mixed-use complex is located in one of the city’s most prominent areas.
Etinar S.A. Founded in
1973 • Portonovo project (Portoviejo): This project was born after an earthquake hit Portoviejo in 2016. It consists of 1,100 units for lower middle-class to low-class families. In-house IT Each of Etinar’s departments and procedures are supported by cutting-edge digital technology. The company’s IT staff has developed custom-made software for operations control and other purposes. For every project, the system enables project supervision, measuring progress and establishing comparisons with cost
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MALECÓN 2000 (Guayaquil boardwalk)
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projections. Other functions allow 20-year (or more) partnerships. Holcim timetable planning and advance is not only Etinar’s best concrete orders for building materials. supplier, but also Ecuador’s as a Etinar is also supported by whole. With Adelca, steel producers its own software for managerial (and suppliers), the company has processes such as HR management, established certain reciprocity, as billing, supplier management Etinar constructed the new steel plant and logistics, among others. in Milagro, and mid-term agreements “I would say that construction with Adelca guarantee Etinar’s steel does not evolve that supply for certain much in account of time periods. constructions systems Local suppliers and methods; but as include specialised a company we try manufacturers remain on the cuttingand installers for edge of construction power grids, glass, Number of processes,” aluminium, paint and employees at Jouvin adds. other furniture. These Etinar S.A. The company subcontractors chooses to work with have been brought prefab structures, minimising in-site to large projects by Etinar, and work. Etinar has cranes, tractors and after good results, lasting alliances other machinery, which allows for a and partnerships have been 40% increase in efficiency, reducing established, allowing these local timetables to complete constructions. vendors to grow their operations.
2,500
Synergy with suppliers Etinar has nurtured lasting relationships with its suppliers, which has resulted in a positive outcome for
Countrywide footprint Most of the projects involving Etinar have been built in Guayaquil, Ecuador’s largest city and the most
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JOSÉ MACCHIAVELLO AND STAFF AT THE UNASUR HQ CONSTRUCTION
“WE WANT TO MAKE A BETTER USE OF OUR INFRASTRUCTURE AND ABILITY BY DEVELOPING PROJECTS WHICH WILL ALLOW US TO EARN INCOME IN A LINE DIFFERENT FROM OUR CORE BUSINESS” – Guillermo Jouvin,CEO for Etinar S.A.
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important regarding commercial activities, and also where the company’s headquarters are located. Nevertheless, Etinar’s proficiency is also displayed in a number of projects over Ecuador’s geography, in cities such as Samborondón, Milagro, Quevedo, Salinas, Playas (General Villamil) and Quito (the country’s capital), among others. Recently in the port of Esmeraldas, the company completed the new headquarters for FLOPEC (Ecuador Oil Fleet), located on the city’s boardwalk. Up until today, all of Etinar’s
completed projects are located on Ecuadorian soil, though the company is currently seeking opportunities in nearby countries such as Peru and Panama. Skilled staff with up-to-date abilities Etinar prioritises skilled personnel in every category, with requirements constantly updated according to each specialised task the company undertakes. The company has provided financing to graduate and postgraduate studies, and staff are
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RIO PORTO PROJECT
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enrolled in courses and seminars about new products, techniques, finance and managerial duties. The road ahead The present and future create a very interesting outlook for Etinar, as several projects are due for completion before 2018 comes to an end, such as the medical centre building in Avenida del Bombero (Guayaquil). The first of the four Ágora towers will be completed and construction of the second tower will begin, as well as planning for the tower destined to become an hotel. Other projects to begin construction in 2018 include the shopping centre located inside the Terranostra housing complex, and also a large part of the Portonovo project is to be completed in the city of Portoviejo. Further down the pipeline are other high-profile projects for Etinar. One of them is the middle-class
housing project in San José, near the Spondylus scenic route. Another very important project is related to the Daular Airport, in Chongon – this will actually become Guayaquil’s new airport, making the hotel inside the Terranostra complex a key project, due to its proximity to the new airport’s site. “As soon as we find out construction for the new airport has begun, we will start planning on the hotel and its promotion,” Jouvin comments. The company’s top priority for the upcoming decade will be developing its own projects to generate income, easing the company’s subsistence during economic slumps. “During these 10 years we want to make a better use of our infrastructure and building ability by developing projects which will allow us to retain a rental share, beginning to earn income in a line different from our core business,” Jouvin concludes.
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ECUADOR’S GO-TO
for CEMENT, CONCRETE and
PREFAB STRUCTURES Significant investments have propelled UCEM S.A into a national leader in concrete and cement through its Chimborazo and Guapán brands
Written by Mateo Rafael Tablado Produced by Jassen Pintado Interviewee: Roberto Foulkes, CEO for UCEM S.A.
UCEM S.A.
UCEM
C.E.M. (National Cement Union), known today as UCEM S.A., resulted from the merger between the 86% stake of Chimborazo cement and Industrias Guapán in its entirety. Two years later, in September 2015, UCEM was acquired by Grupo Gloria, a Peruvian corporation which also owns Yura and SOBOCE, cement companies from Peru and Bolivia, respectively. UCEM is certified by domestic regulations such as INEN 490:2011 and also complies with ISO 9001:2008 global standards, among others. UCEM operates production plants in two sites. One of them is the plant that has always produced Guapán cement, in Azogues, near the city of Cuenca; and the second is the Chimborazo plant, located in Riobamba. Both facilities have been subject to important investments to update production procedures with the aim of witnessing improvements in productivity and profitability. “Chimborazo is strategically located in the middle of Ecuador, catering to a very large market,” explains Roberto Foulkes, CEO of UCEM. Foulkes, originally from Peru, is a lawyer with an MBA. He attended high-profile colleges in Peru and abroad. For the past eight years, Foulkes has worked for different Grupo Gloria business units in high management positions. Before joining the group, Foulkes held managerial positions for
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Founded in
2013
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UCEM S.A.
Construction of UCEM’s new clinker production facility at Chimborazo
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agro-industrial companies such as Azucagro and El Pedregal.
highest standards for service and quality,” Foulkes comments.
Serving every market segment The new clinker plant and road Ecuador’s industrial, commercial to efficiency and residential markets benefit UCEM’s acquisition by Grupo Gloria from UCEM’s high quality products has led to investments of more than through three divisions. $230mn for the Ecuadorian cement The Cement division boasts and concrete operation, Guapán and Chimborazo, as these funds support leading brands in the construction for a new Ecuadorian market, clinker production plant highly available in the Chimborazo in Central and facilities. The Southern Ecuador. objectives are Number of The Concrete simple – to increase employees at division caters for operational efficiency UCEM S.A. major projects through and drive cost reduction. subsidiary Hormigonera The new clinker Equinoccial and is currently a production line boasts supplier for the Quito subway network, latest-gen tech for cement production. set to open in 2019. And the newlyThese cutting-edge systems are created Prefab division provides developed to minimise possible solutions for infrastructure, housing impacts on the environment by and other construction projects. optimising the use of thermal and “Our quality and efficiency have electric energy. The avant-garde resulted in the Quito subway being facility is poised to supply Ecuador built with our cement and concrete. with the highest quality cement. This is Quito’s masterpiece project “We foresee a total investment and those in charge share the of $250mn. This will guarantee
700
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UCEM S.A.
enough clinker for Ecuador, and we are also achieving a highly efficient operation in the facility,” Foulkes explains. Tech support UCEM is currently undergoing SAP deployment. Both plants are also supported with JD Edwards software, boosting the ERP and aligning with the group’s cement business units abroad. The front-end will be strengthened through ecommerce websites – currently under construction – drawing brands closer toward customers, as users are to be offered improved contents, helping them make better decisions about the products they need. “We want UCEM to operate with support of the latest resources in production processes in our sector. One of our goals is to obtain leadership through efficiency,” Foulkes remarks.
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“THE QUITO SUBWAY IS BEING BUILT WITH OUR CEMENT AND CONCRETE. THOSE IN CHARGE OF THE PROJECT SHARE THE HIGHEST STANDARDS FOR SERVICE AND QUALITY” – Robert Foulkes, CEO for UCEM S.A.
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UCEM S.A.
To provide excellence and quality services in the area of engineering and construction, based on our human, technological and continuous improvement potential.
“CONSTRUYENDO
PROGRESO” España 12-05 y 24 de Mayo, Riobamba – Ecuador
593-32944770 • 593-32961443
www.donosoconstructores.com
gerencia@donosoconstructores.com
L AT I N A M E R I C A
Strategic suppliers and local supplier development The current plant construction in Chimborazo has drawn UCEM closer to construction companies and machinery suppliers working on the project. Germany’s thyssenkrupp is deeply involved in tech and machinery deployment for the new plant. On the other side, UCEM sustains a close working relationship with the surrounding communities and businesses supplying raw material. The company’s policies and strategies ensure secure, timely deliveries with orders sharing the same quality. UCEM contributes to these suppliers’ development in production techniques and as advisers in financial matters. The company’s involvement in helping suppliers obtain a financing plan to improve transportation of these goods results in a win-win outcome, with suppliers obtaining new resources and increasing their earnings as UCEM’s efficiency is boosted. “Besides our partners in machinery and equipment, we will always be close to the people supplying us raw material,” Foulkes declares.
Staff training and development UCEM assigns important investments into staff training, benefits and competitive compensations. Annual training plans are developed in domestic soil and abroad. “We’ve sent different groups to the thyssenkrupp headquarters in Germany, where they’ve learned about the new plant’s operation. Other groups constantly come and go to the Yura facilities in Peru, which boasts a late-generation production line,” Foulkes details. The company also offers financing at no cost for employees enrolled in college and other courses, and also schedule flexibility into working hours. This has all helped with a low staff turnover rate at the company. Corporate Social Responsibility UCEM and its surrounding communities engage in projects around forestry, farming, educational projects, community development and new hires for qualified and non-qualified workforce. The company currently sponsors professional training for a group of young students from neighbouring
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“OUR MAIN PURPOSE IS TO CONSOLIDATE OUR PRODUCTS IN THE DOMESTIC MARKET” – Robert Foulkes, Gerente General de UCEM C.E.M.
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GRUPO GLORIA
Peru’s Grupo Gloria operates business units in different sectors. Its Milk and Food division has presence in Peru, Argentina, Bolivia, Ecuador and Colombia. Its Agroindustrial division is formed of seven companies in the sugar cane and fuel production sector (Peru, Ecuador and Argentina). There is also a paper, cardboard and packaging goods production division, while the Cement division operates in Peru, Bolivia and Ecuador through Yura, Calcesur, SOBOCE and UCEM. Grupo Gloria was created by brothers Vito and Jorge Rodríguez, with the support of their brother Jorge Rodríguez, mainly in the Cement division.
communities, who will remain in Peru for a year while learning about the cement production process. UCEM is in charge of most expenses related with this residency. In the environmental area, UCEM has invested in noise-reduction resources and water treatment plants. Goals and involvement in infrastructure projects Ecuador is currently subject to important investments in major infrastructure projects, such as the construction of ports in Posorja, Manta and Puerto Bolívar, with
new mining projects also under development and, of course, the Quito subway system, where UCEM already contributes. These opportunities bring a positive outlook for companies in the construction sector. UCEM’s current goal is achieving leadership in the Ecuadorian market. “All of these projects are poised to have a positive impact in the country’s economy, and also benefit those of us operating in Ecuador. Our main purpose is to consolidate our products in the domestic market,” Foulkes remarks.
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