SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT
Construction An ITP Business Publication
Licensed by Dubai Media City
WEEK
CONSTRUCTIONWEEKONLINE.COM
APRIL 3–9, 2010 [315]
NEWS, ANALYSIS, PROJECTS, TENDERS, CLASSIFIEDS, AND JOBS IN THE MIDDLE EAST
INSIDE NEWS
Meydan to build billion dollar horse city in China PAGE 7
COMMENT
John Salisbury asks how dangerous are unmanaged temps? PAGE 12
TOP 10
BI A H D U B A US C O F Y T I C page 28
The best engineering schools in the world and the Middle East PAGE 14
AUCTIONS
CW talks to the top people in the auction business PAGE 22
DUBAI INVESTMENTS PARK TO BE COMPLETED BY MAY 2013
DESIGN - Link to any structural analysis and design tool to bring your ideas into practice.
DELIVER - Extract and update 2D design drawings and reports automatically from the 3D model:
COLLABORATE Exchange model data with other designers and tools
General Arrangement Drawings Steel Fabrication Drawings Concrete Detailed Drawings Bill of Materials (BOM)
STRUCTURES THAT
STAND OUT
Winner of Tekla Steel Award 2008
- Mr. K. Saravanan, General Manager, Eversendai
Model: Capital Gate by Eversendai
“In every new version Tekla introduces technological items that are very vital for the growth of the construction industry. Due to the complex and challenging nature of jobs at EVERSENDAI we always use Tekla Structures to the maximum and test its limits. We appreciate Tekla’s effort to enable the kind of BIM technology that will enhance the integral perspective of projects in the coming years.” Tekla Structures BIM (Building Information Modeling) software provides a data-rich 3D environment that can be shared by contractors, structural engineers, steel detailers and fabricators, and concrete detailers and manufacturers. Choose Tekla for the highest level of constructability and integration in project management and delivery.
CONTENTS APRIL 3-9, 2010 | ISSUE 315
7
14
FEATURES 14 TOP TEN The best engineering univerisities according to a new UK survey.
16 SITE VISIT CW discovers how the ambitious and complex Dubai Investments Park project is progressing.
16
22 SPECIAL REPORT CW lays out the benefits of buying and selling construction equipment at an auction and how industry players are encouraging regional developers and suppliers to get involved.
32
13 22
REGULARS 2 ONLINE 4 MAIL
DIRECTORY 26 RAILWAY FOCUS 28 CITY UPDATE
FRONT 7 MEYDAN TO BUILD NEW CITY IN CHINA Meydan City Corporation has announced plans to build an equestrian city in China’s Tianjin Province.
8 ARABTEC SUBSIDIARY WINS TWO BIG JOBS IN ABU DHABI Arabtec subsidiary Target Engineering has won two energy-related projects worth a total of US $227 million.
The latest news and projects from Abu Dhabi, UAE
11 NEWS IN BRIEF Highlights of the week.
13 COMMENT John Salisbury, managing director of UKbased de Poel talks about the increased health and safety dangers if temporary staff are not managed correctly.
30 SPECIALIST SERVICES 32 DIALOGUE Eunice Maytorena, programme champion for the MBA for Construction Executives explains how construction companies can benefit from sponsoring their staff to enroll on specialist construction courses.
APRIL 3–9, 2010 CONSTRUCTION WEEK
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ONLINE
www.ConstructionWEEKonline.com MOST POPULAR
BURJ KHALIFA OBSERVATION DECK NOT WORLD’S HIGHEST ARABTEC SUBSIDIARY WINS TWO BIG JOBS IN ABU DHABI MADINAH ECONOMIC CITY SITE WORK SET TO BEGIN AL HABTOOR-SPECON CLOSES IN ON MAJOR QATAR JOB MEYDAN TO BUILD HORSE CITY
HAVE YOUR SAY BURJ KHALIFA OBSERVATORY DECK TICKET PRICE
Is it fair that the Burj Khalifa charges twice as much as the world’s highest viewing deck on the Shanghai World Trade Centre does?
IN PICTURES: SAADIYAT CONSTRUCTION VILLAGE
JOBS OF THE WEEK
The Tourism Development & Investment Company (TDIC) conducted a ministerial tour of the Saadiyat Construction Village on Saadiyat Island last week. Afterwards, Mubarak Al Muhairi, managing director of TDIC, declared himself “proud” of the facility and held it up as a “regional benchmark for the level of housing and associated facilities provided for construction workers across the UAE.” Only last year, Human Rights Watch blasted the conditions of workers on the island in a report that was rejected outright by UAE authorities. Saqr Gobash, UAE Minister of Labour also attended the event and played pool with the workers. To read more visit www.ConstructionWeekOnline.com
Project manager, Abu Dhabi, UAE Senior project accountant, Abu Dhabi, UAE Project director, Doha, Qatar
FEATURES
ONLINE POLL WHAT’S YOUR BIGGEST HEADACHE RIGHT NOW?
46.6% 36.2% 15.5% 1.7% Finding work right now
Getting the money we’re owed
Comment
Legal
MEP DESIGN AT TENDER STAGE: TIME FOR A CHANGE? David Lee looks at the long term cost of variations in MEP contracts.
HOW TO SOLVE CONSTRUCTION DISPUTES Lawyer says how consultants, contractors and developers should solve their problems.
Interview
Construction
WHAT TO EXPECT IN EGYPT? Emaar Egypt GM Hazem Ashry predicts what lies ahead for the country.
KEEPING COOL IN ALL WEATHER CW takes a look at the role of insulation in keeping buildings cool.
Unhappy workers
Materials procurement
2
CONSTRUCTION WEEK APRIL 3-9, 2010
TO VOTE IN THIS WEEK’S SPOT POLL GO TO www.ConstructionWEEKonline.com
MAIL RE: BURJ KHALIFA OFFICIALLY WORLD’S TALLEST BUILDING Once upon a time I was part of Burj construction project as site electrical engineer. I want to investigate how the failure to the lifts occurred. VIVEK KAPOOR
RE: MEP DESIGN AT TENDER STAGE: TIME FOR A CHANGE? On a fast-track project, it’s impossible to finalise the MEP design completely at the time of tender or even award. We need to capture all major components, disallow major design deviations and maintain design contingencies to take care of variations. Also, forecasting the “unknowns” on a monthly basis is good practice and helps to avoid surprises. Lastly, designs should be made by the consultant and not by the contractor. JAIRAM PANCH
RE: REDUCE RISKS WITH PRE-CONTRACT QUALIFICATIONS To what extent one can exercise or enforce what we want as a contractor is a million dollar question, especially when all prequalification has to be withdrawn before tenders are taken into consideration by the client, engineer or project manager. GURUDAS
RE: SWEET HOMES APPOINTS MEP PARTNER FOR AJMAN UPTOWN A recent report by the investor in the project
indicated the project had stalled as there was only handful of workers on the site making it impossible for timely hand over. However, this news will perhaps boost the investor’s confidence if sub contractors address the issue about increasing the man power and than hopefully we can have our villas by middle of next year. LEE
RE: BURJ KHALIFA OBSERVATION DECK NOT WORLD’S HIGHEST Does it really matter? Nobody can use it anyway and by the time it’s opened it will be too hazy to see anything. CLIVE POLHILL
RE: KUWAIT TO SPEND US $62BN ON CONSTRUCTION IN 2010 In general, we have to admit that western countries are more developed and even in China they outsource design services to these developed countries on landmark projects. HASSAN
RE: INDIAN PROFESSIONALS EARN BELOW ‘AVERAGE’ SALARIES The main reason why there is disparity in salaries is because of a lack of a standard salary structure in the Gulf. The will on the government’s part to have a minimum basic pay does not exist and therefore exploiting workers on the basis of colour, education, creed, nationality etc. If unions were available there would have been no issue. AREEF
WRITE TO THE EDITOR Please address your letters to: Post, Construction Week, PO Box 500024, Dubai, UAE or email editor@ConstructionWeekOnline.com. Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWEEKonline.com and air your views on any one of a number of the latest Middle East business articles. The opinions expressed in this section are of particular individuals and are in no way a reflection of the publisher’s views.
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CONSTRUCTION WEEK APRIL 3–9, 2010
Registered at Dubai Media City ITP Business Publishing PO Box 500024, Dubai, United Arab Emirates TEL +971 4 210 8000 FAX +971 4 210 8080 Offices in Dubai, Manama, Mumbai & London
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TDIC Construction Opportunities Pre-Qualification Invitation - Al Bateen Wharf (P052) - Marine Construction Works – East Basin Tourism Development & Investment Company (TDIC) hereby invites suitable Contractors with commensurate experience to undertake the Marine Construction Works (East Basin) for the proposed Al Bateen Wharf development located on Plot 7, Sector W35 in Al Bateen district of Abu Dhabi. TDIC are developing the East Basin of Al Bateen Wharf to provide a prestigious marina complex for luxury yachts. The works associated with this tender package are as follows: :h[Z]_d] e\ j^[ XWi_d je fhel_Z[ WYY[ii \eh oWY^j dWl_]Wj_ed WdZ X[hj^_d]$ H[YbWcWj_ed je fhel_Z[ W fbWj\ehc \eh \kjkh[ Z[l[befc[dj mehai$ 7ffhen_cWj[bo -(&c e\ i[YWdj f_b_d] WhekdZ j^[ d[mbo h[YbW_c[Z bWdZ \eh ikXi[gk[dj Z[l[befc[dj WYj_l_j_[i$ 9edijhkYj_ed e\ Wffhen_cWj[bo ).&c e\ cWii YedYh[j[ gkWo mWbb$ Fhel_i_ed e\ fedjeed ioij[c _dYbkZ_d] i[hl_Y[i \eh kf je '&& l[ii[bi$
9edjhWYjehi m^e c[[j j^[ Yh_j[h_W YWd h[]_ij[h j^[_h _dj[h[ij WdZ h[gk[ij W Fh[#GkWb_ÒYWj_ed Gk[ij_eddW_h[ FGG " Wj bateenwharf@tdic.ae and arrange for j^[ Yebb[Yj_ed e\ j^[ FGG X[\eh[ * fc ed .j^ 7fh_b (&'& \hec0 Tourism Development & Investment Company - Building 1, Behind Khalifa Park, Eastern Ring Road (Salam Street), Abu Dhabi Conditions and Rules: ?dj[h[ij[Z YecfWd_[i ckij Z[cedijhWj[ ikYY[ii\kb Z[b_l[ho e\ h[b[lWdj YedijhkYj_ed fhe`[Yji j^Wj c[[j j^[ \ebbem_d] h[gk_h[c[dji0 '$ H[Y[dj [nf[h_[dY[ ed fhe`[Yji i_c_bWh _d i_p[" Y^WhWYj[h WdZ Yecfb[n_jo$ ($ 8[ W cW`eh h[]_ij[h[Z YedijhkYj_ed YecfWdo m_j^ h[fh[i[djWj_ed _d j^[ K7;$ )$ >Wl[ ^WZ W c_d_ckc WddkWb YecfWdo jkhdel[h \eh YedijhkYj_ed WYj_l_j_[i e\ 7;: (+& c_bb_ed _d [WY^ e\ j^[ bWij ) o[Whi$ *$ IkYY[ii\kbbo Yecfb[j[Z + fhe`[Yji [WY^ _d [nY[ii e\ 7;: '(+ c_bb_ed _d j^[ bWij ) o[Whi$ +$ 8[ fh[fWh[Z je X[ ed[ e\ j[d i^ehj#b_ij[Z YecfWd_[i m_bb_d] je ikXc_j W YedijhkYj_ed mehai j[dZ[h kdZ[h W i_d]b[ ijW][ Yecf[j_j_l[ j[dZ[h fheY[ii$
7 ded#h[jkhdWXb[ fWoc[dj _d j^[ \ehc e\ W cWdW][hÉi Y^[gk[" cWZ[ _d j^[ dWc[ e\ Jekh_ic :[l[befc[dj ?dl[ijc[dj 9ecfWdo e\ 7;: '+"&&& m_bb X[ h[gk_h[Z Wj j^[ j_c[ e\ Yebb[Yj_ed e\ j^[ FGG$ H[ifedi[i je j^[ FGG ckij X[ ikXc_jj[Z _d W i[Wb[Z [dl[bef[ de bWj[h j^Wd * fc ed ((dZ 7fh_b (&'& je0 Prequalification for Al Bateen Wharf Project, Tourism Development & Investment Company, Behind Khalifa Park, Eastern Ring Road (Salam Street), Abu Dhabi
Abu Dhabi develops with TDIC www.tdic.ae
FRONT
>News
8
>Highlights
11
>Comment
12
>Top 10 Engineering Universities
14
>Site Visit: Dubai Investments Park
16
MEYDAN AIMS TO ESTABLISH AN EQUESTRIAN COLLEGE, HORSE RACING FIELD AND STAR-RATED HOTELS, ALL WITHIN THE SAME DEVELOPMENT.
MEYDAN TO BUILD BILLION DOLLAR EQUESTRIAN CITY IN CHINA By Conrad Egbert
Dubai-based Meydan City Corporation last week announced plans to build an equestrian city in China’s Tianjin province, in a joint venture with TAK Design Consultants of Malaysia, Zhouji Jiye and Tianjin Farm Group of China. With a total land area of 5000mu and in addition to an equestrian college, feedstuff plant, breeding base, horse hospital, and quarantine centre, Tianjin Horse City will also include five-star to seven-star luxury hotels, a clubhouse, commercial offices, and residential facilities. The project is planned in stages. The first plan spans five years and eight months from May 2010 to December 2015. By the end of 2011, the equestrian college, studhorse base and feedstuff plant will be completed and put into trial operations.
By the end of 2012, the horse trading centre, hotel, clubhouse, shopping centre, and entertainment centre will be completed. The end of 2013,would see offices and living facilities be completed. By 2014, national standard club events, national equestrian club and national equestrian park franchises will be developed, and the preparation of horse culture communication market and international events market will commence. The Hua Zhi Jie International Equestrian College will have a land area of 4000 mu, and a gross floor area of 600,000m2. The total investment will be US $1.46 billion (CNY10 billion). Its facilities will include a horse hospital, quarantine centre, multipurpose equine facilities, spectator ter-
races, horse stalls, race tracks, indoor horse stable, feedstuff plant, outdoor sports field, and outdoor exercise fields. The commencement of the construction of a horse racing field will depend on the decision of the state on commercial horse racing. The group will be fully prepared for such a construction. Plans to construct five-star to sevenstar international hotels with a capacity for 3600 guests in total are also on the cards. The clubhouse will be composed of premium and mid-class clubhouses. Offices and living facilities will be able to accommodate 20,000 people. The recreational and entertainment centre will be constructed as a tourist resort for horse riding, horse breeding, horse viewing and equestrian sports. APRIL 3-9, 2010 CONSTRUCTION WEEK
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FRONT ARABTEC SUBSIDIARY WINS TWO BIG JOBS IN ABU DHABI
GERMANY SIGNS UAE RAIL DEAL By Conrad Egbert
By CW Staff Arabtec subsidiary Target Engineering has won two energy-related projects in Abu Dhabi worth a total of US $227 million (AED835 million). The projects include engineering, construction and commissioning works. The first project was awarded by Takreer to execute the ‘sea water intake 3’ project and its associated pumping facilities. The timeframe for completion is 28 months and the job is worth $105 million. The second project was awarded by the joint venture of Petrofac–GS to execute the sea water intake system and pipeline for the Gasco Ruwais 4th NGL Train Project. The timeframe for completion is 20 months and the job is worth $122 million.
“The two new projects enforce our strategy to position Target as a leading company in the construction sector and especially in marine engineering and construction projects,� said Ayman Taji, CEO of Target Engineering Construction Company. “We are looking forward to future collaboration on other projects with Takreer and Petrofac–GS. “Our company’s backlog includes significant and major projects which positions Target as a leading construction company in the region.� Arabtec Holding owns 60% of Target Engineering Construction Company. Arabtec is currently negotiating its potential acquisition by Abu Dhabibased Aabar.
Last week German national rail operator Deutsche Bahn said in a statement that it has signed a memorandum of understanding in Abu Dhabi laying out a strategic partnership between the rail giant and UAE-based Al Masaood Group for the planning, construction and operation of rail systems. What is being planned involves projects in the double-digit billions range,� a Bahn spokesman said. The company said billion dollar rail systems were planned for the region.
MADINAH ECONOMIC CITY SITE WORK SET TO BEGIN By Greg Whitaker Infrastructure work on Madinah Knowledge Economic City will begin this year, according to Zubayr Andersson, the project’s research manager. Two contracts have been signed, one for electrical substations and one for sewage pipelines. “Both these contracts have been awarded and signed – everything,â€? said Andersson. “They have one or two months to get their things together. Things are deďŹ nitely moving – it has been a great year for us.â€? A sales and marketing centre will be built by the third or fourth quarter of this year and tenders have gone out for the construction of 18 show villas. Construction work on the villas is set to begin by the end of the summer. According to Andersson, now is a great time to start work on the project because of the drop in materials prices.
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“Right now, everything is 40% to 50% cheaper than it used to be so we are building cheaper, but will be selling at great prices, hopefully in a couple of years. “Contractors are ďŹ ghting, scrabbling, for the contracts. We were talking earlier about cranes – we were worried that some of the other projects happening would push up the prices for these, but in fact the opposite is true.â€? Andersson is conďŹ dent that the project is necessary, despite perceived delays in the development of several economic cities around the country. “In Madinah, there is not a single plot of land available,â€? he said. “Makkah and Madinah are both very congested.â€? The Knowledge Economic City Development Company, the entity responsible for development of the city, is set to IPO on May 25 this year.
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WOULD YOUR COMPANY BENEFIT FROM SAUDI CONSTRUCTION CONTRACTS?
1 JUNE, 2010 RADISSON BLU RIYADH The Building Sustainability Conference brings together key decision makers from the booming Saudi Arabia construction sector, to discuss, debate and share experiences on how environmental building practices can further be encouraged and implemented alongside KSA’s continued economic growth. To find out how you can be a part of this landmark event contact Jason Bowman, tel +971 4 210 8351, email jason.bowman@itp.com today. SILVER SPONSORS
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FRONT HIGHLIGHTS EMAAR PROPOSES NOT TO PAY 2009 DIVIDEND Last week, Emaar Properties said its board had approved a proposal not to pay dividend in 2009, according to a statement on the Dubai bourse. The company will transfer last year’s profit to its reserves and will seek the shareholders approval in a meeting on April 29. In a separate statement sent to Construction Week Emaar said “The decision in respect of the dividend for the year 2009 is in line with such financial policies and due consideration given by the Board of the current financial markets. Emaar has embarked on the strategy of growth and development and for this purpose, it is essential for the company to maintain its liquid resources and balance sheet strength.” J RAY WINS SAUDI ARAMCO EPCI CONTRACT J Ray McDermott, a subsidiary of McDermott International, was awarded a project to upgrade crude gathering and power supply facilities in Saudi Aramco’s Safaniya field. Engineering design work will begin in the second quarter of 2010 with contract completion expected during 2013. The work includes engineering,
NEWS IN NUMBERS
US $120mn
Value of the loan that Saudi Arabia’s Islamic Development Bank will provide to oil giant Saudi Aramco and France’s Total to help build their joint venture refinery at Jubail
procurement, construction, and installation of a new tie-in platform (STP-20) with a 6000-tonne topside, a new electrical deck module for an existing platform (STP-18), a 53km, 42-inch trunk line, four new in-field lateral flow-lines and valve skids, 156km of subsea electrical cable, and the modification and electrification of nine existing wellhead platforms. BURJ KHALIFA’S AT THE TOP NOT WORLD’S HIGHEST At The Top, the currently closed observation deck at the Burj Khalifa is the second highest in the world, preceded by the Shanghai World Financial Centre in China, Chicago-based Council on Tall Buildings and Urban Habitat (CTBUH) has confirmed. The CTBUH is an authority on the official height of tall buildings. The official title for the ‘highest observation deck’ is held by the Shanghai World Financial Centre whose viewing deck levels at a height of 474m, 22m higher than the Burj Khalifa’s At The Top observation deck of 452m. But in a statement to Construction Week, Emaar said: “At The Top at Burj Khalifa is the world’s highest
observation deck with an outdoor terrace.” UNION PROPERTIES SUED BY INVESTORS Over 30 investors have filed a case against Dubai-based developer Union Properties (UP) for a breach of contract, as it has failed to deliver units of the Index Tower reported UAE news daily Emirates Business. The suit claims that the 328m tower, which is currently under construction at DIFC, should have been completed two years ago. According to court papers filed at DIFC Courts, Union Properties sold units of the Index Tower to the claimants and although the forms did not provide any specific date of delivery, it was the common intention of both parties that the developer would deliver the units in late 2008. NAKHEEL CONTRACTORS TO GET PAID NEXT WEEK Real-estate developer Nakheel will start paying contractors as early as next week a source told local news portal Zawya Dow Jones. This follows Dubai’s announcement last week that it would sink US $8 billion into the troubled developer. The source said that the plan was to start paying contractors
at the start of April, but the government was first seeking commitments from them that they would finish work on projects according to the new schedules. A spokesman for Dubai World, Nakheel’s parent company declined to comment. US $74M DEAL INKED FOR OPERATION OF INDUSTRIAL RAILWAY Saudi Arabian Railway said last week it signed a US $74 million (SR278 million) contract valid until end-2013 for operating the railway line for the transportation of phosphate and bauxite from Jelamaid to processors in Ras Azzour. The new 1486km north-south railway, which opens by the end of this year, would make Saudi Arabia a leading supplier of phosphate and bauxite in the world. Passenger traffic on the route would start in 2013 with trains passing by Riyadh, Sudair, Qassim, Hail and Al-Jouf. “The value of the contract depends on the volume of minerals and goods that are transported through the railway during the contract period. In accordance with present estimates, it would reach SR278 million,” Al-Romaih said. “We have already constructed 800km of railway,” he said.
US $8bn US $14.6 36 months
Amount of money that the Dubai Government has given Nakheel to pay off its debts
The price of a ticket to go up on the world highest observation deck at the Shanghai World Financial Centre in China
The time by when all construction work at Dubai Investments Park will be completed
APRIL 3–9, 2010 CONSTRUCTION WEEK
11
COMMENT How dangerous is unmanaged temp staff? JOHN SALISBURY, MANAGING DIRECTOR OF UK-BASED DE POEL TALKS ABOUT THE INCREASED HEALTH AND SAFETY DANGERS IF TEMPORARY STAFF ARE NOT MANAGED CORRECTLY
“TO OVERCOME THIS PROBLEM, CONSTRUCTION FIRMS NEED TO TAKE CONTROL OF THE RECRUITMENT PROCESS AND IMPLEMENT FORMAL TERMS OF BUSINESS THAT CLARIFY AGENCY RESPONSIBILITY”
John Salisbury is the managing director of de Poel. He plays an integral role in cultivating relationships with recruitment agencies, raising the level of agency support, in line with the company’s long term client focused strategy. The opinions expressed in this column are of the author and not of the publisher.
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CONSTRUCTION WEEK APRIL 3–9, 2010
As more construction firms look to hire temporary agency labour, industry experts fear health and safety could take a back seat. While a mixture of unregulated supplying recruitment agencies may increase the likelihood of corner-cutting on worker checks, inductions and training, a lack of responsibility for temporary agency employees might exclude the temporary workforce from health and safety participation. The concern is that as well as impacting on the number of accidents, weak health and safety schemes, could expose construction firms to expensive litigation claims. The fact that the UK Government only recently commissioned an inquiry into accidents and fatalities at construction sites means there will pressure on construction firms to take more a strategic approach to health and safety during 2010. But companies continue to ask how is health and safety being neglected? And how can it be improved? The ‘unmanaged’ supply of temporary labour is proving detrimental to organisations and managing labour supply is one of the most crucial steps in improving health and safety. In the last 25 years, over 2800 people have died from injuries linked to construction work. Many more have become ill or been injured, making health and safety a pressing issue for construction firms. But as companies begin to grapple with their individual health and safety policies, those who employ an unmanaged supply of temporary agency workers risk stumbling into dangerous territory. Not only does it become difficult to establish where an agency’s responsibility ends and where their responsibility starts, but a typical lack of formal business terms and agency regulation continues to provide opportunities for recruiters to sidestep the law. Meanwhile, in the absence of timesheet recording systems, it can be difficult to keep track of on-site accidents,
reducing incident reporting. The good news is that by taking a managed approach to temporary agency supply, these problems can be overcome. Checks and information One of the most vital steps in ensuring health and safety at your construction site is to make certain that all construction workers supplied through an agency are fit for the job. The agency has the responsibility here, they need to obtain information as regards the worker’s identity, previous experience, training and qualifications which may expose whether a candidate is suitable and whether further training is required. For example, a candidate’s age may affect whether they can operate or clean dangerous machinery and a candidate’s qualifications may affect whether they can work in a skilled position. It is also up to the agency to relay information about the job, the employer and the health and safety risks to the worker-seeker, equally important as a means of ensuring health and safety in allowing the worker to provide further information about themselves which may affect their ability to do the job. If the agency is understood to be the employer, they may need to make a site visit and carry out their own risk assessment. They will need to control and eliminate risks to health and safety specifically, which may mean having to organise medical and fitness assessments when hiring candidates for safety-critical jobs such as crane operation or jobs involving asbestos or radiation. The problem with an unmanaged supply of temporary agency labour is that there are rarely any formal business terms in place, putting agencies in a good position to worm their way out of responsibility for health and safety and allowing them to pass all ‘employer’ duties to construction firm. Moreover, a significant lack of industry
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regulation means even where agencies do have a legal responsibility, say, to obtain all the information about a potential worker, unscrupulous recruiters are likely to risk flouting the law if it means cutting costs (making the risks even greater during a recession when budgets are tight). To overcome this problem, construction firms need to take control of the recruitment process and implement contracts that clarify agency responsibility and cover them should agencies breach them. Inductions and training As hirers, all recruitment agencies are required to provide workers with the correct information as regards the training needs of the job they are being assigned to and any special occupational skills they need to do the job safely. If they are considered to be employers, they will also have a joint legal duty with the construction firm to make certain that health and safety training and inductions are actually carried out. Additionally, they will be obligated to ensure safe systems of work are set and followed, and that substances and equipment are used safely, by providing access to training and inductions for specific types of work, both under general health and safety laws as well as more specific regulations. In such cases where agencies are responsible for ensuring training and inductions are carried out, they will also need to check up on standards. For example, proper inductions will need to identify potential hazards, inform workers of the rules surrounding safety-critical jobs and make them aware of restricted areas, special authorisation to do work and particular rules when working in certain weather conditions. They will also need to clarify company policies on uniform, waste management, smoking, drinking, medication and listening to music. Irrespective of whether the agency is the employer, they will additionally need to check workers have understood and are continuing to follow correct procedures. Even if agencies are not the employers, it is good practice for them to work collaboratively with the employer on training and inductions. Where construction firms use a large number of agencies under informal agreements, fail to keep tabs on ongoing
agency performance or wrongly assume that it is the agency’s responsibility to organise training when it is their own, (all of which are the results of having an unmanaged supply of agency workers), it is possible for training and inductions to be missed. This is particularly likely when agency staff are employed for temporary placements, the short-term nature of assignments inducing corner-cutting among rogue and unregulated recruiters who feel that temporary placements do not justify long-winded induction and training programmes. To prevent this from happening, construction firms should consider working with a ‘panel’ of reputable agency suppliers or a preferred supplier list of top quality agencies. Not only does
WORKERS NEED TO BE TRAINED BY THEIR AGENCIES.
this eliminate poor quality suppliers, but it puts your firm in a better position to implement standards for service, and to monitor agency performance. It will also improve your relations with suppliers for more collaborative working, and give you piece of mind that your company is complying with health and safety laws. Bottom-up safety culture In a recent inquiry into the underlying causes of fatalities at construction sites, the author recognised the need for a ‘bottom-up safety culture’ or more worker participation, if health and safety on construction sites is to improve. Indeed, according to the Health and Safety Executive, workers are more likely to work in a safe and healthy way if they have been involved in making decisions about how risks at work are controlled. The fact remains that for construction firms employing temporary agency workers, there is very limited worker participation.
Quite possibly this is because unregulated agencies seek to avoid the process. There is also a chance that temporary agency workers are more likely to be vulnerable workers, such as migrants who may not speak English as their first language, young or old people, requiring more effort on the part of the agency, unlikely when agencies are unmanaged. Another reason is a lack of responsibility for the temporary workers, where neither the agency nor the client ‘claims’ the worker as their own employee, and health and safety is forgotten about. For construction companies, one of the best ways to encourage more worker participation when temporary agency workers are employed is to firmly establish agency responsibilities in this area. This can only be done by implementing formal, service level agreements and distributing them to agencies within a managed panel of suppliers. Agency efforts can be measured over time by including key performance indicators in the agreements. Reporting accidents Reporting not only helps to identify where and how risks arise, but it facilitates the investigation of serious accidents and allows for the development of policies to improve health and safety in the future. Reportable incidents include work-related deaths, major injuries, over-three day injuries, work-related diseases and dangerous occurrences or nearmiss accidents. The problem with an unmanaged and unregulated mix of agency suppliers is that there is unlikely to be any system in place for reporting where workers have been allocated and for how long. Where a large number of temporary agency workers are employed across a number of different depots, this lack of visibility of what kinds of workers are employed at which sites can prohibit the reporting of incidents, leading to an inaccurate picture of accident hotspots. For companies looking to improve accident reporting, a managed supply of workers with access to an electronic timesheet and invoice-processing systems is both effective and efficient. Providing a clear view of where, when and in what jobs incidents are most likely to occur, they reveal areas where more training might be needed. APRIL 3–9, 2010 CONSTRUCTION WEEK
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TOP 10 ENGINEERING UNIVERSITIES By CW Staff
If you’re an official wondering where to send the next batch of bright engineering students or if you’re a student looking to study engineering abroad, UK-based QS can help. The company’s annual survey of the world’s top universities has named Massachusetts Institute of Technology as the world’s top engineering school in 2009, followed by University of California Berkeley, Stanford University and University of Cambridge. Each institution’s score is based on six key indicators: Academic Peer Review, Employer Review, Faculty Student Ratio, Citations per Faculty, International Faculty and International Students. The Academic Peer Review element accounts for the largest portion, 40%, of the overall score.
MASSACHUSETTS INSTITUTE OF TECHNOLOGY
STANFORD UNIVERSITY
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CONSTRUCTION WEEK APRIL 3–9, 2010
Here is the list of the top 10 engineering universities in order of their rank and their engineering scores.
TOP 5 ENGINEERING UNIVERSITIES IN THE MIDDLE EAST (original rankings in brackets) 1. University of Tehran, Iran, 25.8 (112) 2. Sharif University of Technology, Iran, 22.5 (145) 3. Cairo University, Egypt, 18.6 (193) 4. King Fahd University of Petroleum & Minerals, Saudi Arabia, 17.5 (209) 5. King Saud University, Saudi Arabia, 16.2 (227)
UNIVERSITY OF CALIFORNIA, BERKELEY
UNIVERSITY OF CAMBRIDGE
> For more top 10s visit www.ConstructionWEEKonline.com
CALIFORNIA INSTITUTE OF TECHNOLOGY
UNIVERSITY O OF TOKYO
IMPERIAL COLLEGE LONDON
UNIVERSITY OF TORONTO
CARNEGIE MELLON UNIVERSITY
ETH ZURICH URICH
APRIL 3–9, 2010 010 CONSTRUCTION WEEK
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PARK LIFE AFTER 13 YEARS OF DEVELOPMENT, DUBAI INVESTMENTS PARK HAS ENTERED THE FINAL STAGE OF DEVELOPMENT. CW DISCOVERS HOW AN AMBITIOUS IDEA HAS BEEN TURNED INTO A REALITY By Sarah Blackman; photos by Efraim Evidor
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CONSTRUCTION WEEK APRIL 3–9, 2010
I
n 1997, way before the construction boom really took off; Dubai Investments’ management took it upon themselves to lay foundations across 24 million m 2 of desert and start building a mixed-use city from scratch before convincing local, regional and international tenants to invest their money into the project. An extravagant plan at the time, but developing integrated projects has since become a popular business pursuit among ambitious developers and contractors, which has lead to the launch of schemes like, Doha’s Lusail City and Saudi Arabia’s King Abdullah Economic City over the last decade.
completion of this section, along with the entire development expected in 36 months. “Earth works have already been completed and we are just waiting to get approval from Dubai Municipality, DEWA and the RTA before we can begin construction,” explains Al Mesmar. “It will be constructed in two phases and each phase will take 18 months to complete. The number of units will be build depends on the demand we get from local companies.” But, three years is a short time in the construction world, and with the completion deadline fast approaching, are all areas of the vast mega-project running on track and on time? And, what will the project offer once it is fully operational?
THE SCOPE
Despite initial worries, Dubai Investments Park (DIP) is now attracting hundreds of occupants to its residential districts, huge industrial areas and bourgeoning commercial zones. “When the land was bought, it was just a large patch of desert, and out of nothing we have developed an area that is today one of the most sought-after industrial and commercial destinations in the UAE,” says DIP general manager Omar Al Mesmar. Last month, the developer announced the launch of the final phase of development, which is set to become a hub for logistics services spread across 500,000m2. Construction will commence in May, with
The development of Dubai Investment Park was divided into eight phases, each with different land sizes and dedicated amenities. The first three phases, which have now been delivered, consist of labour accommodation, industrial units and residential areas, including the 670,000m 2 Green Community, developed by DIP and Union Properties. Around 12,000 construction workers live at the DIP labour bour camp zone. Phases five, six and seven, which are now 50% complete, te, also consist of industrial units. In fact, t, the industrial zone forms eature of DIP and consists the central feature or manufacturing, assemof facilities for bling and distribution tribution usage. DIP has already lready leased more than 1.57 million m2 of this business-related ts from sectors in property area to tenants development,, metal treatment and insulation materials, ials, heavy duty steel fabrication, plastic, stic, cosmetics and cold storage. ure facilities Infrastructure inside the industrial ustrial zone include a sewage wage treatment plant, which is now operational nal and a second plant iss under construction in the eastern side of the park. Other types ypes of vital infrastrucructure including ding roads, electrical cal substations and nd irrigation facilities lities are also progressing essing
at a fast pace, according to Al Mesmar. “Infrastructure in phase seven will be completed by the end of this month and we will begin constructing infrastructure for phase eight as soon as we get the building permit,” he says. “One hundred and four kilometers of roads have now been delivered.” Phase eight will also have an electricity and water network, a sewage system and district cooling facilities once complete. Total infrastructure investment within DIP is estimated at US $544.47 million (AED2 billion). Phase four of the development, which is now 75% complete, includes warehouses, offices, showrooms, headquarters, schools, residential apartments, hotels and staff accommodation. Dubai Investments has leased over 743,000 m2 of office development plots, clinics, research and development centres and laboratories in the commercial zone
“THE FINAL PHASE WILL BE CONSTRUCTED IN TWO STAGES AND WILL TAKE 36 MONTHS TO COMPLETE”
DUBAI INVESTMENTS PARK GENERAL MANAGER OMAR AL MESMAR.
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of the development at a cost of over $408.36 million. “In the commercial zone, 21 % of facilities are complete, 48 % is under construction and 31% is yet to begin,” reports Al Mesmar. The DIP headquarters are set to be completed in August this year. The site’s $544.48 million ‘showroom zone’ covers a further 278,709m2 and is least to vendors of furniture, hardware, plumbing and cooling equipment and other commodities. In terms of residential development, Green Community and the completed Ewan Residences cater to more than 11,000 residents, while additional projects, including Ritaj are currently underway, and once complete, will accommodate 87,000 residents within 19,000 units, according to Al Mesmar.
RESIDENTIAL AREAS
DUBAI LAGOON HAS ENTERED THE FINAL PHASE OF DEVELOPMENT ACCORDING TO LATEST REPORTS.
INVESTMENTS IN THE INVESTMENTS PARK OVERALL DIP houses around 2185 tenants who have invested more than US $79.69 billion into DIP INFRASTRUCTURE Total infrastructure investment within DIP is estimated at US $544.49 million RESIDENTIAL DIP’s residential zone has already attracted investments worth over US $5.7 billion COMMERCIAL DIP has leased more than 743,000 m2 of office development plots in the commercial zone at a cost of more than US $408.36 million INDUSTRIAL DIP has leased more than 1.57 million m2 of industrial plots to tenants from various business sectors
PROJECT ROUND-UP COMPLETE Phase 1: residential villas (Green Community), industrial and warehouses Phase 2: labor accommodations, industrial and warehouses Phase 3: labor accommodations, industrial and warehouses 75% COMPLETE Phase 4: industrial, warehouses, offices, showrooms, headquarters, schools, residential apartments, hotels and stuff accommodations 50% COMPLETE Phase 5: labor accommodations, industrial and warehouses Phase 6: labor accommodations, industrial and warehouses Phase 7: labor accommodations, industrial and warehouses. STILL TO COMMENCE Phase 8: warehouses (light industrial units)
Apart from Dubai Investments PJSC, other Dubai developers have invested in DIP and have started constructing their own projects within the site. Some of these projects, however, have been delayed quite severely due to current economic conditions. All residential units within the $815 million Dubai Lagoon were initially scheduled for completion by December 2007 are now expected to be delivered in 2011. “There were a few delays as some of the developers postponed their construction due to financial circumstances. However, 134 projects were handed over last year,” insists Al Mesmar. “We have a large and dedicated team of professionals responsible for supervising and managing the various developmental and operational aspects of the project. These professionals work in close coordination with the DIP management, taking care of tenant needs and making sure everything is in order.” The 162,000m 2 Dubai Lagoon is the flagship development of Schön Properties and consists of 4166 apartments and 51 buildings. In February last year the developer awarded Bin Sabt Building Contracting the $136 million construction contract to build the projects remaining zones – four and seven. Meanwhile, Dubai Investments Real Estate Company’s (DIRC) Ritaj complex is “scheduled to be completed in June this year,” says Al Mesmar. DIRC, the real estate arm of Dubai Investments completed the handover of phase one APRIL 3–9, 2010 CONSTRUCTION WEEK
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of Ritaj, including six apartment blocks with 1426 units, last month. The entire development has a total built up area of 239,689m2 and includes 11 residential blocks. “We are proud to have lived up to our promise to customers despite the challenging market situation,” reports DIRC general manager Obaid Al Salami. “Ritaj was launched to bring quality residential space within the reach of a wide cross-section of people, and the project features a range of modern facilities to provide a comfortable living environment for residents.” The second phase of the development, which has already commenced, comprises 598 apartments. “Construction on 1.38 million m2 Palisades has also begun,” says Mesmar, with-
THE INDUSTRIAL ZONE - DIP’S MAIN FEATURE.
RESIDENTIAL AREAS ARE PROGRESSING IN DIP.
DIP TIMELINE 1997 Dubai Investments Park launched 1998 Masterplan completed and phase 1 infrastructure started 2000 Phase 1 construction completed 2001 Construction on Green Community begins 2002 Phase 1 completely leased out 2003 Inauguration of phase 2 by Sheikh Hamdan Bin Rashid Al Maktoum 2004 Phase 3 and 4 construction started 2005 - Phase 3 and 4 fully completed - Phase 5 started 2006 - 810 tenants - Launch of Ritaj, Palisades and Dubai Lagoon projects 2007 950 tenants and 20 hectares developed 2008 - 1000 tenants - 60% of project developed and open to subleasing 2009 - Phase 6 completed 2010 -95% of phase 7 completed -Construction of phase 8 begins
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CONSTRUCTION WEEK APRIL 3–9, 2010
ONE OF THE MAIN OBJECTIVES OF THE PARK IS TO PROVIDE A BASE FOR INDUSTRIAL DEVELOPMENT.
out revealing when the project would be delivered. Dunes village, which includes 14 residential towers, and The Green Community West, another DIP development, which includes 580 villas, 256 apartments and six recreational spaces have been handed over.
“Recycling bins are distributed around DIP and tenants must reserve 10% of their plots for landscaping,” adds Al Mesmar. Dubai Investments also claims that the park is the first private sector development in Dubai to offer tenants water for irrigation and fire-fighting.
ENVIRONMENTAL IMPACT
FUTURE OUTLOOK
So, with so much construction going on, how can DIP sustain itself? According to Al Mesmar, the Park is an “eco-conscious” development and the park allows only certain types of industries to operate within the premises. Tenants must observe a number of regulations in relation to air and dust emissions, trade and hazardous waste, noise control, import and storage of dangerous goods and work safety.
To date, $17.69 billion has been invested into DIP and hundreds of businesses have already settled into their offices, warehouses and headquarters inside the complex development. And, although the huge project was initially built on an empty patch of land surrounded by desert, DIP has slowly but surely come to life and neighbouring mega developments, such as the new Al Maktoum International Airport are set to open a new gateway for future trade.
FEATURES APRIL 2010
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UNDER THE HAMMER CW LOOKS AT THE BENEFITS OF BUYING AND SELLING CONSTRUCTION EQUIPMENT AT AN AUCTION AND HOW INDUSTRY PLAYERS ARE ENCOURAGING REGIONAL DEVELOPERS AND SUPPLIERS TO GET INVOLVED By Sarah Blackman
S
elling construction equipment and machinery to a dealer has its benefits– a quick sale at an arranged time and place. Buying plant and vehicles straight from a supplier also has its advantages – you can purchase from a trader you trust and locally source your equipment. There has been an increasing demand, however, for selling and buying building supplies through auctions, but why? What are the benefits of going to auction, how can consigners ensure their products are sold at a fair price and how can construction companies be confident that the products they are buying match their expectations?
THE SELLER One thing that construction suppliers want from a sale is a reasonable fee, but it is almost guaranteed that a broker or trader will offer them a low price for their equipment so they can sell it on and make a profit for themselves. So, according to experts, if 22
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suppliers want a good price, auctioning is the way forward. “We value the equipment before the seller sells it through our auction. The value we give you is the value we expect at sale,” says Iron Planet managing director for Europe Tom Cornell, adding that end-users are encouraged to buy from auctions for the benefit of the supplier. “They pay more than a dealer or a broker because they buy to use and not to resell. By having a very large buyer base and very a high percentage of end-users globally, we give the seller the opportunity to get the best possible price.” Ritchie Bros auctioneers regional manager for the Middle East, Red Sea, Turkey and Southern Africa Steve Barritt also explains that auctioning equipment will lead to a guaranteed sale. “There are no minimum bids or reserve prices on the items being sold at our auctions, so everything sells on auction day.” Auctioning also gives the seller a unique opportunity to reach to a global market,
which can be beneficial for those selling in a region where there is a low demand for construction equipment. World Wide Auctions (WWA) sells everything from bulldozers and cranes to hydraulic excavators and concrete associated machinery to buyers, well, all over the world. Its unreserved auctions have been held in Dubai, Amsterdam, Qatar, Australia, the Philippines and the USA. The firm sold over 58,500 items of construction equipment at its 70 auctions in Dubai from March 2001 to February this year for US $862 million. “The crowd at the auction is important to hone ones trade contacts,” says WWA regional sales vice president and director Keith Lupton. “Human contact is important and spin off business can be conducted with fellow dealers, this is the same effect that arises in trade exhibitions.” Canada-based Ritchie Bros, which sells used and unused equipment to the industry, also has a world wide buyer base, which
SPECIAL REPORT suppliers can benefit from. In 2009, bidders from 70 countries registered at the firm’s Dubai auctions. “When the equipment is put in front of buyers from the Middle East, Europe Asia, Africa, Northern America and even Australia, our consignors know their items will sell to the highest bidder on auction day,” reports Barritt. But, when it comes to purchasing equipment from abroad, how can a construction company really know they a buying a quality product?
THE BUYER Online auction firm Iron Planet is targeting Middle East buyers and sellers via its European base, in addition to its American auctions. Around 95% of the equipment, which is sold through the firm, is from Europe, of which about 65% is bought from buyers based in Europe. According to Cornell, Middle East buyers are a bit wary of buying construction equipment from overseas, but Iron Planet is trying to assure companies in the region that they will get what they pay for. “We have 52 inspectors all over Europe who are trained to look at the equipment and operate it so companies know exactly what they are buying,” he insists. “We guarantee the buyers an inspection report. This includes a detailed commentary about every single component from the paintwork to the fabrications. Inspectors also take 80 to 120 photographs [of the machinery] depending on the type of equipment. We plan to do more and more marketing in Africa and the Middle East to give buyers confidence to buy European equipment.” Ritchie Bros also carries out a thorough examination of equipment before it goes
CORNELL SAYS HE EVALUATES THE EQUIPMENT.
ON SITE VS ONLINE
LUPTON SAYS HUMAN CONTACT IS IMPORTANT.
to auction so buyers know what they are bidding for. “Before we sell equipment in one of our auctions, we research the equipment for any liens. This ensures that our buyers can be confident that equipment comes with clear titles,” explains Barritt.
“HUMAN CONTACT IS IMPORTANT AND SPIN OFF BUSINESS CAN BE CONDUCTED WITH FELLOW DEALERS, THIS IS THE SAME EFFECT THAT ARISES IN TRADE EXHIBITIONS” “In addition to that, we see that equipment buyers are very professional and well capable to determine the value of an item or truck. We enable them to inspect, test and compare equipment items they’re interested in themselves.” So there is no mistaking the advantages of buying and selling construction equipment at auction, but are industry players aware of these benefits? “Demand is definitely increasing,” Cornell responds. “One thing that is attracting so many buyers and such interest in our auctions is the range of equipment we have.” Iron Planet allows buyers to bid for equipment such as excavators, paving equipment and industrial forklifts, among others. And, it seems that the financial crisis hasn’t affected Ritchie Bros. “In recent years, we’ve all seen the prices of used construction equipment around the world go down. At the same time, we saw more interest at last year’s auctions than ever before. In recent years, we see that the demand for our auctions has increased, both for buyers and sellers.”
There are many different types of auctions; unreserved, where the item for sale will be sold regardless of price; sealed first-price, where all bidders simultaneously submit sealed bids so that no bidder knows the bid of any other participant; and then there’s the onsite and online auctions. According to auction firms, the online sector is growing rapidly. And, Iron Planet has big ambitions in this field. “Iron Planet’s vision is really to become the online market place for any type of used equipment. We want to be the equivalent of Amazon and we want people to understand how easy it is to use Iron Planet,” says Cornell. “We have been unbelievably successful in America – we have a weekly auction there and bring in around 17,000 to 18,000 people from 130 countries around the world to every sale.” Online auctioning is sophisticated, suppliers can reach a much wider audience than they can on site and, of course, it is much more convenient for the buyer to place a bid from the comfort of their own home or office. But, WWA, which invests heavily in both sectors, still believes on site auctioning has the edge over online.
ONLINE AUCTIONING IS A GROWING IN THE MIDDLE EAST.
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ADVANTAGES AND DISADVANTAGES OF ONLINE AUCTIONS ADVANTAGES - Convenience - Buy from your home or office. - Detailed information - A buyer can check all the information about the item that is for sale so they know exactly what they are purchasing. - Choice - The buyer can view hundreds of items before making the decision to join the auction. - Global reach - suppliers can reach a much wider audience than they can on site
01/2010 en
DISADVANTAGES - Overpaying – a bidding context can lead you to pay over the odds and some sites charge the vendors a high price for in depth unit inspection. - Fakes - Sometimes the item being sold may not match the description.
AUCTIONING HAS MORE ADVANTAGES ON ITS SIDE THAN DISADVANTAGES.
“Online is taking off, but caution must be applied. Some sites charge the vendors a high price for in depth unit inspection, which does not always translate into a satisfactory return for the seller,” explains Lupton. “The day of the traditional sale with the crowd and the live auctioneer is, however, a long way from being condemned to history. You cannot replace the ‘day out’ feel of the live sale.” Ritchie Bros also says that buyers still prefer to participate in its on site auctions. “Here, they can kick the tires, take part in the event and meet with our people and other relations they have in the industry,” reports Barritt. But, there’s no denying that online auctioning attracts bidders in their thousands. “Since 2002, buyers are able to place live bids through our website, rbauction.com. This bidding method has certainly grown
“THERE ARE NO MINIMUM BIDS OR RESERVE PRICES ON THE ITEMS BEING SOLD AT OUR AUCTIONS, SO EVERYTHING SELLS ON AUCTION DAY” Last year alone, we sold for approximately $830 million of trucks, equipment and other assets to online bidders,” he adds. Whatever path the buyer or supplier choses in future times to come, if the equipment that is on display is safe and the price is right, auctioning has a mix of all the right elements to help it become a platform for successful trading.
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over the years. Currently, 130,000 unique customers from more than 195 countries have registered and are approved to bid online at Ritchie Bros auctions.
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DIRECTORY RAILWAY UPDATE | CITY UPDATE | SUPPLIERS SECTOR FOCUS 26 GCC Railway Network CITY UPDATE 28 Abu Dhabi SPECIALIST SERVICES 30 Design software 31 Construction manufacturers/steel
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APRIL 3–9, 2010 CONSTRUCTION WEEK
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GCC RAILW UPDATAY E
SECTOR FOCUS RAILWAYS
BUILDING TRACKS THE GCC EXPECTS TO HAVE A FULLY OPERATIONAL RAILWAY SYSTEM – CARGO AND PASSENGER – WITHIN THE NEXT SEVEN YEARS By Conrad Egbert
A
s the GCC states begin to witness more interstate traffic, the need for a pan GCC rail transport system, has never been more pressing.
GCC RAIL NETWORK With this in mind, the GCC Technical Committee decided back in 2006 to build a railway network that would link-up the six GCC nations. The raiway, which will be around 2200km long and will run from Oman to Kuwait, will also pass through the UAE, Qatar and Saudi Arabia. The railway will be linked to the Middle East rail network (not built yet) where the full network will have 16 lanes with an approximate length of 19,000km. In 2004, a preliminary study carried out by US-based Parsons Brinckerhoff and the Kuwaiti Global Investment House proposed two routes for the network. The first was to run over Kuwait, Saudi Arabia, Bahrain over Qatar, crossing the relevant stretches of water by bridge and continuing to UAE and Oman, with the second stretching from Kuwait to Saudi 26
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Arabia before passing through UAE and ending in Oman. GCC states have been independently developing their sections of the rail line. Oman is carrying out its section of the railway in three phases. Phase 1 extends from Sohar to Muscat (230km), Phase 2 extends from Muscat to Duqm (560km), and Phase 3 could see an extension to Salalah (580km). The consortium of Systra, Canrail and Khatib and Alami is the project consultant with the World Bank advising on the tendering process. In December 2010 or Q1 2011, the detailed design contract is expected to be awarded and Q4 2011 will see the engineering study completed. In 2013 construction is expected to start and completed in 2017. At a summit held late last year, the GCC countries’ proactive approach to building railroad networks, whose estimated cost is more than US $60 billion (AED220 billion), was welcomed by experts from within the region who said the efforts would help boost cross-border trade, cut freight costs and result in faster movement of cargo and passengers. Hussain Al Nowais, chairman of the UAE’s
DEUTSCHE BAHN SIGNS UAE RAIL DEAL Last week German national rail operator Deutsche Bahn said in a statement that it has signed a memorandum of understanding in Abu Dhabi laying out a strategic partnership between the rail giant and UAE-based Al Masaood Group for the planning, construction and operation of rail systems. What is being planned involves projects in the double-digit billions range,” a Bahn spokesman said, declining to be named. Bahn is already involved in a $22.66 billion project in neighbouring Qatar.
Union Railway Company spoke very positively of the project saying that rail is safer, faster, cleaner and a more economical mode of transportation.
GULF RAIL PROJECTS US $60bn Total GCC rail projects
US $14bn GCC Railway
US $13.8bn Saudi Arabia North-South Railway
US $8.2bn UAE National Railway
US $7.6bn Dubai Metro (Red and Green lines)
US $6bn Harmain High Speed Rail (Makkah – Jeddah – Madinah)
According to estimates from the Union Railway Company it will cost up to $8.2 billion to build a countrywide 1400km network of railways by 2016. Dubai Metro alone cost $7.6 billion for two lines (Red and Green). The current plans for the network see the GCC railway completed by 2017. Union Railway aims to connect the UAE to Oman and Saudi Arabia — connecting to Sohar in Oman through Al Ain, and connecting to Fujairah in the Eastern region. It will offer two routes that provide alternative access to the Indian Ocean. The railway will also connect to Saudi Arabia through the Guweifat border and greater GCC and Mena regions. Union Railway expects to transport 30 million tonnes of bulk and break bulk by 2015. At present, rail transport in Saudi Arabia is managed by the Saudi Railway Organisation, which provides freight services on three main lines totalling 1018km. There are plans to extend the network to the Red Sea port of Jeddah and eventually, to the borders of Jordan, Yemen, and perhaps all the way to Egypt.
GCC RAIL SO FAR… December 2006 – the invitation to bid for the study contract was issued. February 2007 – a consortium led by France’s Systra, Lebanon’s Khatib and Alami and Canada’s Canrail was awarded the feasibility study contract. The study covers extrapolation of topographical and statistical data, route alignment works, port integration, financing and development options, creation of a legal model and passenger and freight intel. September 2007 – the consortium started working on the feasibility study. December 2008 – the feasibility study was completed and approved by GCC. February 2009 – Systra was awarded the study contract of Phase 1 of Oman’s section of the railway (from the port of Sohar to the capital Muscat). May 2009 – study of Phase 1 completed. December 2009 – member states declare project commercially feasible.
27
CITY UPDATE ABU DHABI
MOVING ON
UP
A LOOK AT THE LATEST PROJECT PROGRESS AND AN OVERVIEW OF THE NEW DEVELOPMENTS, WHICH HAVE RECENTLY BEEN ANNOUNCED By Sarah Blackman
A
pril is here and Abu Dhabi is expected to make a lot of progress with its developments as major industry players continue to press on with their mega projects. And while new developments will surely be announced at the upcoming Cityscape,
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CONSTRUCTION WEEK APRIL 3–9, 2010
US $1.3 BILLION CLEVELAND CLINIC ABU DHABI PROJECT
to be held this month, the emphasis will be on confirming commitment to existing projects in the city, in the hope of boosting the confidence of investors. One such project, which is running on track, is Bawabat Al Sharq. Last month, Baniyas Investment and Development Company revealed that construction on phase one of the US $816.7 million mixed-
use development has now reached 60% completion. Phase one, which is set to be delivered in December this year, comprises 164 apartments and 56 villas. “The substantial progress we are witnessing on the project is in line with our strategy of adhering to strict time frames while ensuring that we deliver quality. We are moving ahead steadily with the objective of handing over the residential sector of phase one,” said BID CEO Wael Tawil. “Once complete, Bawabat Al Sharq will incarnate an ideal living environment for all our residents while enhancing the region’s economic appeal.” The construction on phase two of the project is scheduled to commence in early 2010 and completed in the last quarter of 2011. Baniyas Mall is set to be opened at the end of this year and the entire development is expected to be delivered in the last quarter of 2012. In terms of new projects, Target Engineering, a subsidiary of Abu Dhabi con-
struction giant Arabtec, won two energy related contracts in the city worth $227 million last month. The contracts include engineering, construction and commissioning works for ‘sea water intake 3’ and associated plumbing facilities, and a sea water intake system pipeline for Gasco Ruwais 4th NGL Train Project. The timeframe for completion of the jobs is 20 and 28 months respectively. Also last month, a joint venture between Belgium’s Six Construct and Korea’s Samsung (SSJV) bagged the $1.3 billion main contract for the construction of Cleveland Clinic in Abu Dhabi. The client is Mubadala Healthcare, a business unit of Mubadala Development Company and Aldar Properties. SSJV will be responsible for the complete construction works of the clinic. Getting money back into the market is also on the agenda for businesses in the area as they opt to build low cost housing and major transportation networks to recuperate the real estate sector.
TOP PROJECTS US $18 billion Al Raha Beach Development
US $1.5 billion Hydra Village
US $1.3 billion Cleveland Clinic
US $1 billion Saraya District
US $816.7 million Bawabat Al Sharq
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31
DIALOGUE EUNICE MAYTORENA Reap what you sow During her visit to Dubai, Eunice Maytorena, programme champion for the MBA for Construction Executives offered at the Manchester Business School (MBS) explained how construction companies can benefit from sponsoring their staff to enroll on specialist construction courses
By Sarah Blackman
What did you hope to achieve from your visit to MBS, Dubai? I travelled from the Manchester Business School in the UK and I sat in one of the workshops running under the MBA for Construction Executives programme. The course structure has now changed and I am just trying to get a feel for how we can modify the workshops and look at how students are responding to them. The MBA programme is accredited by the Royal Institute for Chartered Surveyors and I wanted to discuss how MBS can further develop its relationship with the organisation. We also have a relationship with Tongji University in Shanghai, where the MBA has recently been launched. Visitors from Tongji came to Dubai to sit in the workshops and discuss how we can work together to deliver the course. How would you describe the course content? The MBA for Construction Executives is aimed at suppliers, contractors, clients, architects or anybody that works in the construction sector. It has the same core modules as any MBA, such as financial management, but there are construction specific electives available. It is a part time course that runs for three years but it usually extends to four years because students are working full-time while they are studying.
promoted quickly. It helps people who want to have a career in the industry and develop to a senior level position. They can develop their leadership skills and their strategic management skills. The people coming into the workshops are from varied disciplines and the discussions really help enrich an understanding of what they are all trying to do collectively. How high is the demand for construction courses like the MBA you offer? In terms of the MBA for Construction Executives, I know that the intake of students has increased year-on-year. Of course, with the financial crisis, we have seen a drop in numbers, but the numbers are actually starting to pick up again. I think, at this point in time, organisations really need to start investing in education and training if they want to have a competitive advantage over other companies and gain momentum. They need to focus on their core capabilities. Is it quite expensive to enroll on this course? Not really. I have spoken to students and they have said they are getting value for their money. Also, some of the students are being sponsored by their companies to take the course because they see the value in it and the contributions candidates will bring to their organisations once they have completed the course.
What are the entry requirements? How do you hope to improve the course this year? You have to have a good first degree and this applies to any For this year, I would expect to see the number of people course at Manchester Business School. You need to have attending the workshops and enrolling on the course to rise a a minimum of six years of work experience, so you will be little bit in the UAE. I hope organisations in the UAE will take around 27 years of age or above. Also, you need to speak notice of the programme and see that English well because all the courses run in English. Usually, the students that it will help improve their businesses. BIO come on the course are very experienced The programme started in January Eunice is a Lecturer in Construction Project and are managers or senior managers. 2007 and was launched in Dubai in Management at MBS (Manchester Business We have a mix of backgrounds currently July 2007. The content has changed School). She has taught on undergraduate, on the course including architects, since then and we have enhanced master and executive MBA programmes and solicitors, commercial managers, clients, the courses. Starting from July this is currently programme champion for the MBA people from the oil and gas industry etc. year there will be two courses that for Construction Executives, offered in Dubai. are enhanced, one is called ‘creating An architect by training her work experience What opportunities do students a sustainable built environment’ and includes architectural design and consultancy, have once they have completed the other one ‘strategic management research in various aspects of the built the MBA? and projects’ – if students want to environment and project management. Usually, graduates with an MBA from become CEOs they will have to start MBS get higher salaries and they get thinking strategically. 32
CONSTRUCTION WEEK APRIL 3–9, 2010
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