CRANES AND LIFTING: May/June 2017

$9.90

MAY 2017

RARING TO GO INSIDE

Terex primed for the future • High on cranes • Relight my fire • Port of the future

RARING TO GO

14 12 26

Terex primed for the future.

CONTENTS | MAY 2017 ROM CICA’S 11 FPRESIDENT CICA takes a proactive approach

12 HIGH ON CRANES Have you seen my crane?

ONEXPO-CON/AGG 16 C2017 The sights and sounds of CONEXPO

20 CRANES IN ACTION: WA

26 ACCCESS EQUIPMENT Relight my fire

30 OVERHEAD AND GANTRY Keeping it in the family

34 NEW ZEALAND

Lifting your game NZ style

SIA PACIFIC REPORT: 36 ASINGAPORE AND

A tough road ahead for WA

Cranes and Lifting is a media partner of

MALAYSIA Genie works its magic

Senior Editor: Jacqueline Ong (jacqueline.ong@mayfam.net) Senior Journalist: Kylie Field (kylie.field@mayfam.net) Creative Director, Patterntwo Creative Studio: Toni Middendorf Advertising Sales: Ross May (ross@mayfam.net) Subscriptions: Phone: (02) 9267 1166 Email: contact@mayfam.net Web: www.insideconstruction.com.au Office: Suite 18, 104 Bathurst Street, Sydney, New South Wales 2000 Phone: (02) 9267 1166 Email: contact@mayfam.net Website: www.insideconstruction.com.au COPYRIGHT WARNING: All editorial copy and some advertisements in this publication are subject to copyright and may not be reproduced in any form without the written authorisation of the managing editor. Offenders will be prosecuted.

NOTE FROM THE TEAM

News updates at www.insideconstruction.com.au In our inaugural High on cranes section, we speak to Wollongong Crane Trucks about its latest addition to its fleet. (Credit: Wollongong Crane Trucks).

What’s new with you?

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n March, the team flew halfway around the world to the four-day spectacular in Las Vegas that is CONEPO-CON/AGG, and what an experience it was! Thousands, possibly tens of thousands of people made their way to Sin City for the event and it was truly a sight to behold.

Exhibitors went all out, putting on shows and concerts - SANY had a lion dance to usher in happiness and good fortune - to draw the crowds to their booths, and it was not for nothing. The show was marked with launch after launch, from Manitowoc’s new 55 metric ton GRT655L to Australian Crane and Machinery’s ACM400, which was presented to the North American market for the very first time.

The event also offered the team the opportunity to meet the who’s who of the cranes sector, including Terex Cranes president Steve Filipov, who affirmed the company’s commitment to Australia. His insights and thoughts, as well as a wrap-up of CONEXPO-CON/AGG can be found from pages 14 to 18.

Cranes and Lifting would also like to offer

you, our dear reader, something new. Thus, we have embarked on a partnership with supplier of international construction information KHL Group to bring you news from around the world.

Since 1989, KHL Group has been in the business of delivering information in a range of formats from magazines such as International Cranes and Specialized Transport, to events including APEX. Moving forward, each issue of Cranes and Lifting will include an international round-up of news and moves from around the world, brought to you by KHL Group.

But we’d also like to know, what’s new with you? One of the things that excites us here at Cranes and Lifting is receiving pictures of operators and their brand new shiny kit. Thus, we’ve launched High on cranes.

In each issue, we will showcase an operator’s latest machine, whether this is a mobile elevated work platform, or an all-terrain crane and we’d like to hear from you. So if you’ve recently purchased a crane or an elevated work platform, please get in touch (contact@mayfam.net) to be featured in High on cranes. More on page 12.

It’s not all about new equipment though.

On page 30, we turn our attention to Eilbeck Cranes, the 110-year-old Australian owned company that has, to date, kept it in the family.

Eilbeck Cranes is one of the only companies that continues to manufacture, amongst other things, overhead cranes, in Australia. In doing so, the company says it is able to build fit-forpurpose machines to meet its clients’ demands.

And we cast our eye to New Zealand, where annual construction growth has been a consistent 7% since 2011, driven largely by the residential construction sector and record population growth.

Crane activity, according to RLB, has almost doubled and of course, with growth comes challenges for the country’s cranes and lifting sector. To tackle these challenges, Crane Association of New Zealand has put together a program to suit for its annual event in July.

More on page 34.

We hope you enjoy this issue!

The Cranes and Lifting team contact@mayfam.net

Corrections • In the March 2017 issue of Cranes and Lifting, the article - Building bridges in Tasmania - on page 21 states that in Western Australia, the allowed axle weight on roads in 13 tonnes per axle. This is incorrect and should be 12 tonnes per axle.

• Also in the March 2017 issue of Cranes and Lifting, we quoted Konecranes’ director of industrial cranes for the Pacific region, Peter Monagahan on page 36 - (Not) a rubbish solution - as saying the crane is capable of anywhere between manual to fully un-manual automation. This should in fact be, manual to fully un-manned automation.

• Finally, on pages 14 and 15 of the May 2016 issue of Cranes and Lifting (Go west…), the image caption states: “In WA, crane operators have no limitations when driving their cranes around the state, even on freeways like the Kwinana Freeway.” This is inaccurate as cranes have access to all roads in WA except the Kwinana Freeway.

We apologise for any confusion.

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May 2017

NEWS

News updates at www.insideconstruction.com.au

Sydney commands the skies; NZ on the rise RIDER Levett Bucknall (RLB) has released its Q2 2017 RLB Crane Index for New Zealand and Australia and down under, there has been a slight dip in the number of tower cranes that dot our skyline.

All up, 653 tower cranes were identified by RLB in Australia, down from its peak of 666 in October 2016. This slight decrease is the first fall recorded since the firm’s inaugural report five years ago.

RLB says the drop in crane numbers is largely due to the completion of of a number “super” projects, including the Gold Coast’s Commonwealth Games Village (six cranes) and Perth Stadium (seven cranes).

The residential sector continues to be dominant, with 548 cranes representing 84% of all cranes commissioned on future residential dwellings. The sector saw a net gain of nine

KONECRANES OFFERS NEW WAY TO SOURCE CRANES

Konecranes RENTALL is a bundled service that helps businesses control equipment and maintenance costs. (Credit: Konecranes)

May 2017

cranes since the last index. Apart from the residential sector, other industries that have shown growth in crane numbers were the health, retail, and civil sectors with three, one and three additional cranes respectively.

Sydney continues to dominate the skies with more than 50% of all cranes in Australia, followed by Melbourne (22%), and Brisbane (12%). These were the only capital cities with more than 10% of the nation’s cranes.

Over in New Zealand, 132 cranes stand tall across the country’s cities, adding 15 tower cranes since the last index.

RLB said the rise in the number of cranes in New Zealand is due to the continuation of the country’s “rock star economy”.

Across the country, construction work grew by 20% or almost $3.4 billion in the

past calendar year to reach just under $20 billion. 2016 was the fifth year of continuous construction growth since 2011.

The highest increase in crane numbers were noted in Auckland, which has 72 long-term cranes, thanks to strong economic growth driven by high inward migration and increasing tourist numbers, alongside solid housing activity, manufacturing, and consumer spending.

Auckland’s residential sector cranes account for 60% of Auckland cranes, 88% of all the residential cranes counted in New Zealand, and 33% of total cranes counted nationally. The residential count also includes the aged-care sector which has seen a recent growth in crane numbers.

Meanwhile, Christchurch had five tower cranes erected across its skyline and it remains the second busiest construction city in New Zealand.

KONECRANES has launched RENTALL, allowing customers to rent low to mid-range capacity cranes.

Through RENTALL, Konecranes customers no longer need to make a large capital investment but can still get an efficient crane combined with a service package, where Konecranes takes care of maintenance and spare parts.

“With RENTALL, we can approach the customer with a new way to source the crane.

We have piloted the RENTALL concept in a few countries and based on positive feedback from satisfied customers, we are now launching the concept to new markets,” says Raine Jussila, product manager, Konecranes RENTALL. Konecranes RENTALL is a bundled service that helps businesses control equipment and maintenance costs. With a fixed monthly fee, customers get a small or mid-sized crane with a full service package that includes preventive and routine maintenance, repairs, parts replacement, 24/7 on-call service, and TRUCONNECT Remote Monitoring.

Customers can choose to rent a crane of up to 20 tons of capacity from the Konecranes industrial crane range. Only site-related items, transportation, installation, commissioning and initial inspection are paid up-front. Then there is a fixed monthly fee for the contract period. If needed, the crane can easily be upgraded.

The minimum Konecranes RENTALL contract period is three years. After this, customers can choose to continue with the rental agreement, buy the crane at a pre-agreed price, or return it to Konecranes.

Konecranes RENTALL is available in Finland, UK, Singapore, Australia, Sweden and Norway.

The plan is to introduce RENTALL to other countries in the near future.

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NEWS

News updates at www.insideconstruction.com.au

Woolnorth Wind Farm Holdings has turned to Genie.

Tassie wind farm relies on Genie during maintenance NORTH-WESTERN Tasmanian wind-farm operator Woolnorth Wind Farm Holdings says its decision to switch to the Genie SX-180 boom lift for servicing its turbines has significantly reduced the company’s maintenance and running costs, as well as machine downtime.

The boom lift will be used at Bluff Point, where Woolnorth Wind Holdings operates 37 Vestas V66 wind turbines mounted on 60-metre-high towers, as well as at nearby Studland Bay, where the company has 25 Vestas V90 wind turbines on 80-metre-high towers. The V66’s blades are 32 metres long, while the massive V90 turbines have 44-metrelong blades.

“Prior to leasing the Genie SX-180 boom lift, Woolnorth used cranes with baskets to access

the blades of the wind turbines. However, this solution didn’t prove cost effective,” Genie specialist access equipment manager Don Jessup said.

“The Genie SX-180 boom lift can be operated by either of the two blade technicians from the basket. With a crane, you can have two blade technicians in the basket, but you also require a crane operator to be in the cab at ground level always. Moreover, the crane operator may not be called upon to do a single crane operation for hours at a time.”

In addition, there is the tyranny of height, with the two blade technicians operating at anywhere between 130 to 180 feet in the air.

“Given the sheer heights involved, the blade technicians may not have line of sight with the

GANTRY CRANES TO PLAY IMPORTANT ROLE IN BRIDGE WIDENING THE Victorian government announced in March that widening works to the EJ Whitten Bridge will be ramped up with two large remotely controlled cranes being assembled ahead of works starting in April.

The assembly of the 13-metre-tall gantry cranes marks the start of significant works to widen the bridge from three to five lanes in each direction, improving safety and slashing travel times.

Working 50 metres above the ground requires special gantry cranes in order to widen the bridge in the centre by connecting the two bridges together, says the government.

This construction method allows all lanes on the bridges to remain open during peak times, minimising disruption to the 165,000 motorists who travel along the M80 Ring Road every day.

The cranes will move from the Keilor Park Drive end to install 20 bridge beams weighing up to 1700 tonnes and lay a new bridge deck all the way along to the Sunshine Avenue end.

The cranes will be operated remotely, creating a safer environment for workers and drivers on the bridge by giving the operator greater visibility at all times.

Senator for Victoria James Paterson said: “With more than 22,000 trucks using the EJ Whitten Bridge every day, this important infrastructure project will future-proof the structure, boost capacity and improve productivity for the freight industry and our economy.”

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crane operator and have to communicate by two-way when they need to move,” said Jessup.

In a Genie SX-180 boom lift, the technicians in the basket simply tweak the controls to move to a new section of the blade.

CRANES COLLIDE IN CAIRNS IN early March, two cranes collided at the Cairns Performing Arts Centre construction site and the accident may cause delays in the delivery of the $66.5 million theatre project.

According to a Cairns Regional Council spokeswoman, the Council was notified of the collision immediately after it happened.

“Council will work with lead contractor FKG and any relevant authorities to ensure any issues are dealt with in a timely manner,” the spokeswoman said.

“And we will await any further advice as far as there being any investigation on site.”

Kevin Woodhouse, who lives across the street from the Florence St. development, saw the incident at about 1:45pm on March 4.

According to Woodhouse, the tower crane started going in a big anticlockwise sweep before hitting the boom crane.

“They got stuck together and it took about 45 minutes to get them apart,” Woodhouse told The Cairns Post.

“When they did get them apart, it looked like there was some damage to the boom crane. You should have heard it scraping when they lowered it down.”

May 2017

Advanced lifting technology

FLAT-TOP AND LUFFING-JIB TOWER CRANES

AMERICA

Construcciones Metálicas COMANSA S.A. +34 948 335 020 · export@comansa.com www.comansa.com Spain

Linden Comansa America LLC +1 704 588 7729 · sales@lcacranes.com www.lindencomansaamerica.com United States

Comansa Construction Machinery (Hangzhou) Co., Ltd. +86 571 8299 5555 · sales@comansacm.com.cn www.comansacm.com.cn China

NEWS

News updates at www.insideconstruction.com.au

RUD launches stronger lifting point THE RUD Group may have more than 500 international patents and an extensive line of equipment for its product groups, including lifting chains and components, materials handling, concrete solutions, and hoists, but it is not resting on its laurels.

The company has now launched the VLBG-PLUS, a captive but exchangeable ICE-BOLT made out of patented steel with special corrosion protection Corrud-FT. The load ring’s clamping spring also works as a noise reduction and holds the suspension ring in the requested position.

All up, the VLBG-PLUS is a higher WLL lifting point and key advantages include: • up to 45% higher WLL capacity at an average (M8-M30); • 360° lifting point rotation; • patented RUD ICE BOLT steel; • Grade 120 providing greater wear resistance; and • other specific features such as quick and easy installation with just one bolt connection, assembly with flat/rig or allen key, and hand tightening with an appropriate wrench for a single lift.

RUD’s VLBG-PLUS.

THE LARGEST LINDEN COMANSA LUFFING-JIB MAKES ITS DEBUT LINDEN Comansa has launched the LCL700, the largest in its range of luffing-jib tower cranes to date.

Two versions of the LCL700 are launched on the global market, with maximum load capacities of 64 tonnes and 50t. By means of simple manual modifications, the maximum load capacity of the cranes can be reduced to 32t and 25t respectively, resulting in increased hoist speed and productivity.

The maximum radius of the LCL700 is 65 metres and can be reduced in increments of 5m to 30m. The LCL700 64t can lift a maximum load of 7.2t at maximum reach, while the LCL700 50t can lift 7.5t. The minimum reach of both models is just 4m, allowing maximum use of the space at the construction site. The LCL700 also boasts an excellent ‘out-of-service’ jib radius of between 20.4m and 16m, depending on the maximum reach, providing a greater level of safety on the construction site when the crane is not in use.

The radius of the counter-jib is also extremely short, measuring just 9.5m, with the potential to be reduced to 8.7m by assembling the crane with steel counterweights rather than the standard concrete counterweights.

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May 2017

The challenges of working in PNG HIGH up in the rugged and remote highlands of Papua New Guinea, miners and contractors prize reliability and uptime in the machinery they deploy for vital production, construction and maintenance tasks. It’s crucial to any job that machinery is in prime operating and safety condition.

When Enerpac distributor Bishops decided to refurbish a Liebherr All Terrain Crane LTM1090/2 deployed 770 metres above sea level in the misty jungles near Bulolo, it was no easy task.

Recently, the machine had completed five years of service at the Hidden Valley gold and silver mine operated by Morobe Mining, a joint venture between Harmony Gold of South Africa and Newcrest Mining of Australia and it was decided that, after five years of continuous service at the mine, the crane would benefit from a rebuild to

May 2017

Conditions in PNG can make it difficult to have major inspections carried out on cranes, thus, Molloy says it is “incredibly important” to have reliable equipment in the first place.

as-new condition. Thus, it was swapped with the 100t Liebherr and the other crane was shipped back to the workshop and machine shop facility in Port Moresby about 250 km away.

“Replacement of such an important part of the crane as its slew ring was fundamental to the rebuild strategy, for which Bishops required top quality, fast, efficient and safe professional bolting technology,” said Enerpac PNG manager Pat Molloy, who works in partnership with Enerpac distributor Bishops and who spoke exclusively to Inside Construction.

According to Molloy getting a crane from Port Moresby to Hidden Valley can take up to five weeks.

“It travels by barge from Port Moresby to Lae, then by road to the site, which is an eight-hour drive on damaged roads. It’s a major undertaking.”

Molloy says it’s important to have equipment that is reliable because there is no “just down the road” when it comes to getting parts or personnel.

“It’s critical to have the right equipment and expertise on-site,” he said.

The tools selected for the task included the Enerpac S1500 torque wrench, supplied

by Bishops Port Moresby, which is from the same Enerpac professional bolting ranges used globally on some of the world’s biggest building and infrastructure projects.

“The Enerpac gear was ideal for this job, because it provided speed and accuracy as well as traceable bolt loads,” said Molloy.

“The large nut rotation per wrench cycle and rapid return stroke of the S-Series made the job CL particularly efficient,” he said.

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KHL’S INTERNATIONAL ROUND-UP

Around the world with KHL Cranes and Lifting has partnered with supplier of international construction information KHL Group to bring you news from around the world.

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stablished in 1989, KHL Group is in the business of delivering information in a range of formats, from magazines such as International Cranes and Specialized Transport and Access International, to events and exhibitions including Cranes and Transport Asia Pacific and APEX, to directories such as the World Crane Guide.

Cranes and Lifting is pleased to have forged this partnership and we hope our readers enjoy the international spread, brought to you by KHL Group. Full versions of these stories and reports, as well as accompanying images can be found at www.khl.com or in International Cranes and Specialized Transport magazine.

ZOOMLION AND MAZ COLLABORATION Belarus state-run automotive manufacturer association, Minsk Automobile Plant (MAZ), and Chinese crane manufacturer, Zoomlion, have established a joint venture business to start manufacturing special-purpose vehicles, including the following: mobile cranes; concrete pump trucks; concrete mixer trucks; and municipal vehicles.

MAZ will build the chassis while Chinese equipment manufacturer Zoomlion will provide the mounted equipment. The finished products will be primarily aimed at the post-Soviet and European markets, although vehicles could potentially be exported to the Middle East, Africa and Latin America. Output is estimated to be around 1000 vehicles over the next five years.

VOSSMAN MAKES HEAVY COMEBACK German haulage specialist Vossmann Logistik has completed a heavy transport project in Northern Germany, transporting a 105-tonne vortex vessel used to clean gas.

The move marks Vossmann’s recent return to the 100 tonne-plus gross weight sector. To complete the job, Vossmann used a team of 35 men and a recent addition to its fleet: a Faymonville CombiMax trailer.

According to Faymonville, Vossmann added a package of 16 axle lines together with a flatbed, excavator deck and vessel deck to its fleet several months ago. It claims that this has enabled the company to pursue new challenges that suit the large payload and modular capabilities of the CombiMax.

ALE CLAIMS RECORD LIFT

EYES ON THE PRIZE

The record for the world’s heaviest commercial lift using a land-based mobile crane has been claimed by ALE. The UK-headquartered heavy lifting and transport specialist lifted a module weighing more than 3000 tonnes for an FPSO (Floating Production, Storage and Offloading) vessel integration project in Brazil.

A 5000-tonne capacity AL.SK350 super heavy lift crane was used to lift the M9 module using 130 metres of boom and a 4000-tonne capacity winch system at a radius of 86m. It was rigged in its current biggest configuration, ALE said, with 49m ballast radius and 4000 tonnes of ballast. The crane’s maximum load moment rating is 354,000 tonne-metres.

A crane from Italian manufacturer JMG Cranes is one of four finalists in this year’s Swedish Steel Prize. The Swedish Steel Prize claims to be the only international award for engineers in the steel industry and is designed to recognise and reward innovative products, methods and processes utilising high-strength steel that have changed the industry in one way or another.

JMG Cranes has submitted its MC580 compact electric crane, which is suitable for use both indoors and outdoors, as its entry. The other three finalists are: Fermel (South Africa) for a mining vehicle; Kiruna Wagon (Sweden) for a dumper wagon; and Wabash National (USA) for a rear impact guard.

The winner will be announced at a ceremony in Stockholm on May 11, 2017.

A SOLID FOUNDATION FOR REDUCING EMISSIONS Specialist contractor Keltbray Group is attempting to reduce its on-site emissions in central London by using the Solum multi-purpose aluminium temporary foundations solution.

“The Solum foundations are modular and spread working loads over an increased footprint. But, importantly, they are the perfect balance of strength and load capacity compared to their weight, which means even the largest unit can be moved by hand.

Solum can be delivered with the crane and set out by hand in just a few minutes, saving all the emissions associated with the second crane. The speed with which the outrigger foundations can be set up also saves hours of emissions from the crane as it’s on site for less time,” Steve Leyton, group lifting operations manager for Keltbray, said.

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May 2017

FIRST FORESTRY CRANE WITH HIAB HIVISION

IMPERIAL USES 3D LIFT PLAN FOR TIGHT LIFT

Hiab has delivered its first Loglift forestry crane controlled using the camera-based HiVision remote control system.

The operator can work from inside the truck cab where the view of operations is provided by wearing virtual reality goggles displaying a feed from four cameras. The cameras on the top of the crane give the operator a 270-degree view of the working area.

Long-standing customer Ackestens Åkeri in Sweden bought the system to go on its new Scania truck.

At a recent HVAC replacement job on the campus of Loyola University, Chicago-based Imperial Crane & Rigging had to remove and replace a chiller unit from the roof of the 13-story Loyola Center Tower on Pearson Street, which is right off Michigan Avenue and just down from Water Tower Place. The old HVAC unit weighed 15,000 pounds (6.8 metric tons) and its replacement weighed 14,000 pounds (6.4 metric tons). The unit needed to be placed about 35 feet (10.7 meters) beyond the roof line.

Pearson Street would need to be shut down for the set-up of the crane, for the lift and for the disassembly of the crane.

Depending on the size of the crane chosen for the project, the shut-down time would range from 12 to 24 hours.

Imperial Crane’s senior project manager Jeff Hejna looked at the job site from every angle to determine the quickest, safest and most economical way to perform the lifts. Using 3D Lift Plan software, he chose a Grove GMK 6300L as the centerpiece crane.

The crane was rigged with 245 feet of main boom at a radius of 78.4 feet, plus a 39-foot swing-away jib at 20 degree offset.

It was rigged with its full counterweight of 220,000 pounds, and fully rigged the crane was set up at 38 feet wide including the outrigger mats set up on a 40-foot wide street.

FPT TO SUPPLY LIEBHERR WITH ENGINES Engine manufacturer FPT Industrial has signed a deal with Liebherr to supply engines.

FPT will supply its 4.5-litre four-cylinder diesel rated at 130kW to Liebherr Machines Bulle in Switzerland. It is a Tier 4 Final / Stage IV version of the NEF series N45 diesel with selective catalytic reduction (SCR) exhaust treatment.

FPT said it is specifically designed for Liebherr. It is turbocharged, has a common rail injection system, and four valves per cylinder. Also featured is the Italy-based manufacturer’s patented High Efficiency SCR (HI-eSCR) system.

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HYDRAULIC GANTRIES • Super Lift (SL) series: Offers control & stability, up to 400 tonnes • Super Boom Lift (SBL) series: Heavy duty, up to 1000 tonnes • Mega Boom Lift (MBL) series: Offer lifting heights to 14.5m, up to 600 tonnes

AUS 1800 225 084 sales@enerpac.com.au www.enerpac.com.au May 2017

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Membership Benefits

Enjoy the benefits of CICA membership…….

Lobbying & Representation:

 Representation on a National level  Links with like associations

 Industry representation on

Networking & Information:

 CICA State Branch meetings  Information about important

 Member discount to attend the

Industry Exposure &

 Promotional opportunities available

 Industry promotion and exposure

Products & Services:

 CICA’s Australian Standards Online

 CICA Traineeship  Discounts on CraneSafe program

Awards & Competitions:

Standards and EN13000.

Annual CICA Conference

industry issues

at industry events including the CICA Conference.

Access  CICAAssist  CICA Benchmarking Study

and the range of products

 Access to ongoing development of

new safety initiatives and products.

 Access to and celebration of the Con  CICA Lift of the Year Awards Popov Memorial Award for  Participation in the annual Photo of outstanding service to the national crane industry.

the Year Competition.

THE CRANE INDUSTRY COUNCIL OF AUSTRALIA

PO Box 136, Mount Waverley Vic 3149 Phone: 03 9501 0078 Fax: 03 9501 0083 E-mail: admin@cica.com.au Website: www.cica.com.au

Lifting Industry Standards

2017 CICA Conference, Exhibition & Crane Display

Program At A Glance

Host State:

CICA Board Meeting CICA National Reference Group CICA AGM First Timers Briefing Welcome Reception Networking Dinner

Sponsorship & Exhibitor Opportuni�es available – Contact Simone Hill at the CICA Office for informa�on admin@cica.com.au 03 8320 0420

Thursday 19th October

Friday 20th October Keynote Speaker Speaker Sessions Lift of the Year Award Presentations

Saturday 21st Ocotber

For further information visit the conference website:

http://conference.cica.com.au

Speaker Sessions Manufacturers’ Panel Gala Awards Dinner

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May 2017

CICA INDUSTRY REPORT

From the president For some, CONEXPO held in Las Vegas every three years, is the international crane show not to be missed.

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nfortunately, I missed the memo this year and hence, will have to rely on our friends at Cranes and Lifting magazine to give a full rundown on the latest and greatest that was on offer. I can however, advise that CICA actively participated in the sixth meeting of the International Crane Stakeholders Assembly (ICSA), which was hosted by the Association of Equipment Manufacturers (AEM) and Specialized Carriers & Rigging Association during CONEXPO. Our CEO, Brandon Hitch, presented CICA’s newly introduced CrewSafe Operator Competency program, which was developed to combat the cost/quality of verification of competencies (VOCs) and to help address the shortcomings of our current high risk licencing system. Other items of discussion included ESTA’s European Crane Operator License Project, Cranes on Floating Barges, Stability Calculations for Long Boom Systems and Wind Effects, EN13000, New York City Safety Bills Under Consideration, Swing Away/Fold Away Jibs, methods for calculating wire rope reeving systems limits and erecting wind turbines - access roads and hard stands (to which CICA has agreed to chair the paper). We took the opportunity to discuss with AEM their approach to major inspections and how it aligns with our condition monitoring and inspection approach. We have since received formal confirmation, which will form part of CICA’s major inspection guidance document. I was also pleased to hear it was agreed that the 2018 meeting would be held in conjunction with our annual CICA conference. This is a great opportunity for us to engage with the key players in the international crane community.

Back in February, the first CICA National Reference Group meeting for 2017 was held in Melbourne. This is a forum where each CICA

FIGURE 1

branch gets updates and the opportunity to give feedback and direction to the projects CICA is working on. Amongst other items, road access was a key agenda item. CICA is continuing to improve our tools and approach to engage with local councils to gain access for the SPV1 notice.

We have had much success in Queensland (as shown in Figure 1), and have a grant request in place to replicate this approach for other states.

CICA is also taking a proactive approach for our industry by applying to the NHVR for an intention to register a Crane Industry Road Safety Code of Practice that will cover: • Crane Roadworthiness.

• Mass Configuration.

• Crane Load Security.

• Crane Operator Competency for Road Travel.

• Crane Operator Fatigue.

• In addition, several position papers were finalised, and are now available (along with the full meeting minutes) on the members’ section of the CICA website.

• CICA-GN-0013-A Guidance Note for Ground Pressure Calculation.

• CICA-GN-0035-A CICA Position Paper on Western Australia OHS 1996 Regulation, Clause 4.

• CICA-IB-0037-A CICA Information Sheet Roll Over Protection System (ROPS).

Also in February, CICA was invited to meet with the Australian Constructors Association (ACA) during their recent board meeting. We discussed matters pertaining to cranes that impact both ACA’s members and CICA’s members - design requirements, standardisation and operator competency - and how we can work together on solutions to make our industry safer and subsequently more profitable, in particular,

CICA president Danny Black

through collaboration on industry accepted standard documents (i.e. SWMS, lift plan, lifting equipment register and pre-start checklist) and our CrewSafe and traineeship programs.

Lastly, a reminder to block out your calendar for our 2017 conference, “Elevate Your Thinking”, which will be held at the Adelaide Convention Centre from October 19-21. It is shaping up to be a great event. As always, if you have any ideas of how CICA can better help our industry, please don’t hesitate to drop me a line.

Many thanks, Danny Black – GM Terex Cranes Australia CICA President | 0419 384 962

CICA Board

Danny Black – President, Terex Cranes Tom Smith – Vice President, Williamstown Crane Hire Andrew Esquilant, Liebherr Australia Cheryl Woodhart, RMB Service Group John Gillespie, Gillespies Crane Services Bart Sutherland, Complete Crane Hire Geoff Bevan, Hydralift Ben Pieyre, Freo Group

CICA Office

Brandon Hitch, Chief Executive Officer Tracey Watson, Business Operations Manager (VIC Secretary) Simone Hill, CICA Administration Officer (Accounts/Membership/Events) Heidi Hervay, CICA Administration Officer (NSW, QLD & NT Secretary) John Humphries, VIC/TAS Liaison Officer Alice Edwards, Project Engineer/Project Manager Patrick Cran, Plant & Operator Assessment Officer Sherry Kirby, CICA Administration Officer (Tues/Thurs) Unit 10, 18-22 Lexia Place, Mulgrave Vic 3170 (PO Box 136 Mount Waverley Vic 3149) Phone: 03 9501 0078 Fax: 03 9501 0083 Email: admin@cica.com.au Website: www.cica.com.au For information regarding CICA membership, please visit our website or call the CICA office.

May 2017

11

HIGH ON CRANES

Have you seen my crane?

Here at Cranes and Lifting, we love that you love your cranes. And it makes us happy when we receive images of operators standing tall beside the latest edition to their fleet, big grins on their faces, thumbs up, eyes sparkling.

Thus, we’d like to introduce you a new addition to our “fleet” - High on cranes. Ross May has the details.

I

n each issue, we will showcase an operator’s latest machine, whether this is a mobile elevated work platform, or an all-terrain crane, or a tower crane (as long as everyone’s in the picture!). We’d like to hear from you so if you’ve recently purchased new equipment, please get in touch (contact@mayfam.net) to be featured in High on cranes. Send us your stories and images and you could be the next High on cranes superstar.

In our inaugural High on cranes section, we speak to Darren Mortimer, owner of Wollongong Crane Trucks. After 26 years of commitment to meeting the growing needs of customers, the family business has taken delivery of its largest crane to date.

When Cranes and Lifting spoke to Mortimer, he was crystal clear on why the business was constantly upgrading its lifting capacity and reach.

“We started with smaller cranes and have consistently upgraded. Nowadays, building sites are generally smaller and tighter. Our newest crane truck is fitted with an EFFER 395-

6S with 4S fly-jib from Maxilift Australia, which gives us greater flexibility lifting 500kg at 26m,” Mortimer explained.

He added that the shape of Wollongong Crane Trucks’ work for its customers is always evolving.

For instance, it is now commonplace for air conditioning units to be installed, and at 350kg per unit, the new EFFER has proven versatile.

“Mobile cranes often require traffic control whereas our crane truck can operate from driveways or off-road on the kerbside without the need for traffic control. And the ability to operate under power lines and transport material, such as steel beams, to site and lift them straight off is a real advantage for our customers,” Mortimer said.

The EFFER 395-6S is Wollongong Crane Trucks’ second EFFER, however it is the first supplied

by Maxilift Australia whose service Mortimer described as “incredible”. And for Mortimer, having a business partner in Maxilift Australia that is as committed to him as much as he and his family CL are to their customers is a must.

The EFFER 395-6S is a great tool to have for tree removals.

L-R: Orlane Mortimer, Darren Mortimer, Jett Mortimer, David Headington, Alan Curry, and Dave Irvine.

12

May 2017

INSIDE THE EFFER395-6S Key specifications: • EFFER 395-6S with 4S fly-jib.

• 7140kg at 4.73m.

• 510kg at 26.4m.

• Maximum hook height of 30m.

Got a spa to move?

Easy peasy.

What a beauty.

Common usage: • Transport and lifting of spas/swimming pools.

• Lifting of steel beams and timber trusses.

• Tree service and removal.

• Machinery installation/relocation.

Why this crane configuration?

• Wollongong Crane Trucks already had an EFFER 315 with six hydraulic extensions and were looking for a larger crane with the additional capabilities of a fly-jib. Customers were requesting the movement of heavier loads at greater distances.

• The fly-jib on the crane can easily and quickly be removed whilst onsite to enable even greater lifting using the standard crane boom.

All images courtesy of Wollongong Crane Trucks.

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13

CONEXPO-CON/AGG: Q&A

A time for soul searching and right sizing This year’s CONEXPO-CON/AGG in Las Vegas in March was a sight to behold. But it also presented the team with the opportunity to meet the who’s who of the cranes and lifting world. Taking time out of his busy schedule, Terex Cranes president Steve Filipov sat down with Jacqueline Ong to discuss the company’s plans for the future. One thing is for certain, the days of watching the train go by are over, and Terex Cranes is primed to get out there and fight for its market share.

F

ilipov was reinstated as president of Terex Cranes in October last year and since then, he has been candid about the task at hand, particularly as he drives the business forward. He told Cranes and Lifting (CAL) he likes to “keep things pretty simple”, and will focus on a few priorities this year, which will help Terex build its credibility and capture opportunities that come its way.

CAL: Earlier this year, Terex announced a fourth quarter 2016 loss from continuing operations of US$313.9 million (AU$415.35 million). How is the company currently doing in various global markets?

Filipov: It depends on the product because there are pockets that are actually doing well but there are others that are not. Our tower cranes business is a good one and not only for Terex. There is growth there and there is momentum. When you look at Australia as an example, we just sold three large luffing tower cranes to our customer Reds Global in Sydney and they purchased other tower cranes last year as well. So tower cranes are a good business, particularly in Australia where it seems to be going well.

Turning to the large crawler crane, that business is stable. In places like Europe, there is not a lot of growth there; there are issues in Germany for example, with wind power and generation, which have kind of slowed there.

There are also subsidy issues, which has put a little bit of a pause. But you have pockets like India where we’ve just sold a big order to our customer Sanghvi and we are betting on wind power in India and see that going up in the next couple of years. The large crawler business is going well - we have a good product in the 650-tonne class range and I would like to think that we are the leader in that product range.

Rough terrain cranes are kind of a mixed bag.

North America is still a depressed market and it has continued to go down in the past couple of years… I think it has hit the bottom so we will see if things pick up over the next couple

14

of months. Outside of North America, the rough terrain crane business is okay. It is doing okay in the Middle East; it is doing okay in places like Africa. Latin America is a tad difficult right now though I should say Brazil is difficult because when you look at Chile and Peru, they are actually doing okay.

As for the all-terrain crane business, which is a big part of our business, it is pretty stable. If you look at the all-terrain crane market over the past couple of years, it has not really fluctuated that much. It has stayed at the 2000-unit level and it is a pretty good market.

Ultimately, it is a mixed bag and particularly Australia, it is very depressed. We have a great pick and carry business, with a facility in Brisbane and the team there is a world-class team but the markets have been very difficult.

But in February, we had some good business come through and maybe there is light at the end of this tunnel. The Australian team feels pretty good with the momentum they are seeing in the market but personally, we need a little bit more time to see if things really pick up. Mining is still very low, but residential, non-residential, and industrial work seem to be picking up a little bit and that is a good sign.

CAL: Looking at North America, is there optimism in the market given President Donald Trump has focused quite a bit on infrastructure?

Filipov: Yes. President Trump has talked a lot about infrastructure investment and that is a great thing for our type of business. But it is going to take time and it would be foolish to think there will be a massive uptake in infrastructure in 2017. If what he has discussed goes through, would I feel more confident about 2018, 2019, and 2020? Yes. There is some momentum but the politics and bureaucracy will take time to push through. We do need the investment - if you look at infrastructure in the US, it is crumbling.

You only need to go to the airports in New York to see how bad things are. And look at all our power lines, they’re above ground. There are

more potholes than you can shake a stick at.

So infrastructure investment is something we really need but it is going to take time.

CAL: And what about Asia? Any pockets of growth there for Terex?

Filipov: Japan has been a pretty good market for us with the Demag product. And there are pockets of growth in places like Vietnam, Indonesia to a certain extent, and the Philippines, though it is not massive by any means. China for me is a big question of what is going to happen there. The Chinese state-owned companies are interested in our larger products because they do not have a local manufacturer but you know, to participate in China… I don’t see us putting a lot of infrastructure in there. We recently closed one of our Chinese facilities so we will see.

CAL: Looking at the year ahead, what can we expect from Terex and what are the opportunities for the company?

Filipov: I like to keep things pretty simple.

The number one priority for us is to focus on customers, to re-engage with our large customers, to get more business, and close deals. We have been, to a certain extent, a little bit reluctant about going out there and being aggressive but we are going to get out there and we are going to fight. The days of simply watching the train go by are over. We are going to go after it and get business.

The second priority is around restructuring, which is hard, but we need to do it. We are going to reduce our global footprint by about 50%, which means closing five to six facilities and exiting about 1000 employees over the course of the next 24 months but we have got to right size. This is really about right sizing Terex Cranes for the US$1.2 billion business that we are today.

The third area of priority is to continue to invest in new products. Although we lost US$26 million last year, our plan is to get back to break even this year by doing the things that I have May 2017

I like to keep things pretty simple.

The number one priority for us is to focus on customers, to re-engage with our large customers, to get more business, and close deals. The days of simply watching the train go by are over. We are going to go after it and get business.

Terex Cranes is committed to the Australian market, says president Steve Filipov, and there are signs the market will pick up.

just mentioned. However, the investment in new product development is going to continue and it is going to grow over time. I am a firm believer that it is in a downturn like this, or in a difficult time, that we need to be spending money on new product development because when it picks up, you are going to be selling a lot of new products. As you have seen here on the CONEXPO stand, we have got a lot of new products coming out, and over the next three to four quarters, we will have another dozen new May 2017

products. That is the vitality of our business and that is the vitality of our brand and we need to continue to invest in it. Some people say you can either use a brand or you can build a brand and what we need to do is to build the brand.

Yes, we may have other strategic issues but we have got to focus on these three to four priorities in the short-term and start to show momentum to our customers that we are going to stand behind our products, we are going to fix our products if there is an issue, and we

are going deliver our products on time to the highest quality. We have got to do a bit of soul searching and get our credibility back.

Turning to Australia, it is a market that we are committed to. The team has done a good job and there are some signs of light in the all-terrain business. We’re doing good in Australia - we bought the Franna back in 1999 and back then, it was a good business and we grew with the market. It is still a really good CL business and it will bounce back.

15

CONEXPO-CON/AGG 2017 Thousands make the trek to Las Vegas to check out the latest in construction equipment and machinery.

(Source: CONEXPO-CON-AGG)

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24 HR – 7 DAY May 2017

From across America, and from all over the world, those that work in the construction and cranes and lifting sectors descended on Las Vegas for the four-day extravaganza in March that is CONEXPO-CON/AGG. Kylie Field has the details.

I

t’s not simply the fact that it’s held in Vegas every three years, or the fact that there are thousands, maybe tens of thousands of people attending, it’s also the size of the event and the sheer volume of exhibitors - 2800 to be exact - that is truly mind-blowing.

The Cranes and Lifting team were lucky enough to attend this year, and it was an action packed four days. We attended launches, conferences and met with some of the biggest names in the business (see page 14 as an example), and every single one of them was keen to talk about Australia’s cranes and lifting sector.

Technology is taking the industry by storm and it won’t be long till we see this level of advancement in Australia, especially with drone

use and integrated systems. Safety is and will always be the number one issue when it comes to crane operation, and the people we spoke to say it is the number one priority when designing new cranes launched at the event.

It was great see Aussies out in force and the Australian Crane Machinery (ACM) 400 truck-mounted elevated work platform is a remarkable piece of machinery. Designed and manufactured by ACM in Australia, CONEXPO was its grand unveiling to the world.

Exhibitors from China were also out in force, and a star-studded press conference featuring the rock stars of the business gave us a glimpse of just how big and impactful the Chinese are when it comes to the production of machinery.

The number one focus for them moving forward

is to provide end-to-end customer service and to listen to what customers want.

And to address the big elephant in the room… what is the general feeling about Donald Trump being elected President? From what we could gather, the announcement of a massive infrastructure spend for the US has been received with open arms. Some are proceeding with caution that the amount promised is going to be delivered, while others are confident “Make America Great Again” will be achieved with the help of the construction sector.

CONEXPO was bigger than Ben-Hur and we had a ball. Here are the highlights - a picture paints a thousand words - as well some of the products that caught our attention at CL the show.

SANY welcomes happiness and good fortune with a spectacular lion dance.

View from the top. Exhibitors pull out all the stops to showcase their machines.

(Source: CONEXPO-CON/AGG)

Manitowoc Cranes CEO and president Barry Pennypacker discusses the company’s focus on listening to the voice of their customers.

Advanced technologies were also on display at the show.

(Source: CONEXPO-CON/AGG)

Source: CONEXPO-CON/AGG

Do you see what I see? (Source: CONEXPO-CON/AGG) Elevated work platforms were also a big part of the 2017 show. (Source: CONEXPO-CON/AGG)

May 2017

Source: CONEXPO-CON/AGG

17

CONEXPO-CON/AGG 2017

Shiny bits and bobs Rising in a competitive market

Viva Las Vegas for ACM

MANITOWOC was just one crane manufacturer that went all out at CONEXPO, showcasing a wide range of machines and using the event to introduce its GRT880 to the North American market, as well as launch its GRT655L. The rough-terrain crane incorporates Manitowoc’s Crane Control System, and is a reflection of all the company has learned in the last decade of crane design.

“The GRT880 is replacement for the RT880, which was introduced in the 2005 and 2006 timeframe. This is newer technology and it has an 80 metric ton rating but it’s the mid of the low chart, which is where we have enhancement of the capacities that we can offer to the end user,” Manitowoc product manager for rough-terrain cranes Paul Cutchall told Cranes and Lifting.

The GRT880 features a 41-metre boom that is lighter than other cranes in its class. It also has a full complement of boom extension and insert options, and a reach of 60.9m and maximum tip height of 68m.

The boom is also lighter and longer than its predecessor, but has the ability to lift heavier loads across its load chart.

“The GRT880 that was shown at bauma last year was a prototype. Between bauma and now, we’ve done all of our testing - all of our reliability testing, longevity testing of our booms, lifecycle testing etc, and now it’s ready to be marketed and sold worldwide,” Cutchall said.

Then there’s the 55 metric ton GRT665L. The long-boom version of the new GRT655 boasts a 43.03m five-section, greaseless boom, giving it a reach advantage of 8.32m over the closest competing model.

This longer boom gives it a maximum working radius of 36.58m and a 3% greater chart capacity than competing cranes at that radius.

MELBOURNE-BASED Australian Crane and Machinery launched its Australian designed and made truck-mounted elevated work platform at CONEXPO and at the show, it sought US distributors for the ACM400.

The machine is the only 40m machine in Australia that goes on a 4x4 truck and is more compact that any other currently on the market.

“It meets all road regulations and axle weights so it doesn’t require any permits. There is a large capacity basket that extends and retracts hydraulically. The basket opens and shuts and has the most modern control systems,” ACM managing director Ben Potter said.

“We do all the computer systems so everything is done in-house. We buy components from Germany and the joystick and main box are from the US. We also write all the programs and use a system called CAN Bus. It’s similar to a computer on a desk that has different items all connected to it and works off an IP address and a flow of cables that all talk to each other. Our system is similar as all the senses run down a communication cable.”

Potter added that the machine is designed to European standards EN280, and has a complete dual system so it’s similar to an aeroplane.

Paul Cutchall in front of Manitowoc’s newest addition - the GRT655L.

18

Liebherr extends mobile crane range LIEBHERR took the opportunity to announce the extension of its mobile crane product range with an additional series of rough terrain cranes in the 90-tonne and 100-tonne classes that will also be available in Australia.

The two newly designed LRT cranes are based on the same basic technical concepts.

The crane chassis and turntable are almost identical, while there are differences in the boom length, telescoping technology, ballast weight and lifting capacity.

High safety levels were the main priority for the design of the new Liebherr LRT cranes and feature an outrigger monitoring system standardly. The support status - on tyres or outriggers - is detected automatically and saved to the crane controller. The attachment of the ballast to the turntable and the installation of the optional double folding jib, including its angle adjustment are also recorded and monitored.

There are ladders, a large number of handles and an electrically extending platform on the cabin to ensure safe access to the crane. The new LRT cranes feature a wide range of storage boxes for accessories, rigging equipment and support timber as standard features. They also have a storage facility for the crane hook.

Liehberr unveils its extended mobile crane range.

The LRT cranes measure 3.87m in height and 3.3m wide and are transported on public roads with a low loader. Their curb weight is less than 55 tonnes with complete equipment including ballast or under 40 tonnes without ballast or equipment.

Linden Comansa hits the jackpot “THE most important fairs in each sector tend to be a thermometer of the market situation,” says Linden Comansa, and to that end, CONEXPO was no exception.

The company said the 2017 show was a “true reflection of the thriving sector of construction machinery” and it was at the event that Linden Comansa exhibited its luffing-jib tower crane the LC310 - to the US for the first time.

Linden Comansa said the crane, with 24 tonnes of maximum load, attracted “numerous visitors” with a number of potential customers interested in finding out more about the model as well as the company’s range of 14 luffing-jib tower cranes, which was completed in February last year with the launch of the LC700, Linden Comensa’s largest luffer.

The big winners IT certainly paid off for a number of exhibitors whose cash registers were ringing during and after the show. Here are some of the big spends this year: • California’s Bigge Crane and Rigging invested more than US$100 million (AU$133.16 million) in new equipment at the event, purchasing 75 cranes, construction hoists, and gantries. These include 27 Terex cranes, 14 Kobelco cranes, 12 Tadano cranes including the GR-1200XL rough terrain cranes, three Enerpac gantries, and Manitowoc’s ML650 crawler crane.

• I’ll have 24 please, said Coastline Equipment, a long-standing Manitex dealer that purchased 24 machines from the Manitex CM series and TC series of straight-mast boom trucks and truckmounted cranes.

• An increase in rental utilisation and quoting activity has led New York-based Empire Crane Company to purchase two Tadano Mantis telescopic crawler cranes. They include the new 88-ton GTC-800 and the 77-ton 15010.

• The English were in on the buying frenzy too, with crane company John Sutch ordering five new cranes, including a Demag AC 220-5, two Demag AC-60-3s, and two pre-owned Challenger 3160 CL all-terrain cranes at the show.

May 2017

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CRANES IN ACTION: WESTERN AUSTRALIA

A tough road ahead for WA A lack of new infrastructure projects and high-rise tower builds coupled with the depressed state of the Western Australian economy is cutting the work available for crane operators. Is there a light at the end of the tunnel now that the state has a new government? Jan Arreza reports.

C

onstruction activity in the state has slowed and the newly elected state government has been dealt a poor hand - a budget deficit inherited from the previous Barnett government. In its final assessment before the election on March 11, Treasury forecasted a deficit of $3 billion this year, with debt rising to more than $41 billion by the end of the decade.

And although it is a count of only tower cranes across Australia’s skyline, Rider Levett Bucknall’s Crane Index offers some insight into how each state’s economy is doing.

The latest Crane Index released in April showed that in Perth, tower crane numbers fell 50% due to the recent completion of 16 projects, as well as, and perhaps more importantly, the cancellation of the $440 million Roe 8 project.

The Roe 8 situation The cancellation of Roe 8 should not come as a surprise. It was after all, an election promise, and Premier Mark McGowan has commenced the reversal process for the project with a renegotiation process between Main Roads Western Australia and the project’s proponents.

In a recent statement by Premier McGowan, 20

Main Roads WA was instructed to work with the Roe 8 alliance partners to begin negotiations to come up with alternative congestion-busting projects in a bid to redirect existing jobs to new projects.

However, these projects will need to be funded and federal funding committed to Roe 8 will not be automatically allocated to the other road or rail projects in the state.

Ahead of the WA elections, Prime Minister Malcolm Turnbull made it crystal clear that the incoming WA government would have to submit new business cases for any new projects in order to secure funding.

“With Roe 8, the federal government funding allocated to that was specific and the state government would need a new business case for something new to get this money reallocated,” Construction Contractors Association of WA CEO Peter Moore told Cranes and Lifting, adding that other projects that were promised or discussed are still in the early planning stages, meaning WA will likely not see much activity for some time. “[Activity] will happen in the longer term because it’s a government that’s just coming into power trying to understand what they’ve got to deal with in a budgetary sense, and then

trying to get their head around what they’ve promised and what they can actually deliver,” Moore said.

And perhaps it is still early days, but apart from keeping its Roe 8 election promise, very little information has been released by the new government.

“Other than the fact that they have fulfilled an election promise not to continue with Roe 8 there’s been very little information about the direction they plan to go other than that they are looking at some other rail options,” Moore said.

“There is the Metronet, which will be done progressively, the rail tunnel to the airport is underway, there’s no indication of any slowdown in finishing off the new Perth stadium as everybody is dead keen to get it ready for potentially an Ashes test this year, and then there’s the associated Swan River pedestrian bridge that’s for the new stadium.

“I also read about a number of building projects relating to shopping centres and things of that nature, as well as a lot of hotels that have started the construction phase or are in the process off starting. [These are] relatively minor compared to the larger scale projects needed but nevertheless, it’s some activity and I think everybody is waiting to try and work May 2017

The level of work in the civil construction space is thin and the new state government is facing a perilous financial situation. (Pictured: A lone crane in Fremantle. Credit: Bess Mendiola, Flickr CC)

with government after they settle into their new roles to look at just how might that be funded,” Moore said, adding that it’s a wait and see situation and once the government settles in, it will then be about trying to work with them to hopefully get more federal government funding for a pipeline of work.

Where is the work?

Master Builders Western Australia construction director Kim Richardson told Cranes and Lifting it is on the state government to push the business case for new infrastructure projects because without Roe 8, civil sector contractors are really going to struggle for the next 18 months to two years.

“They are going to do it really tough because there’s just not enough work to go around to keep them sustainable, and that’s where the McGowan government is going to have to get its skates on to try to fill the void after having scrapped the Roe 8 itself,” Richardson said.

“Speaking on the commercial sector, there is about 25% office vacancy space in the Perth commercial office rental sector at the moment - roughly the highest since 1989-91 in Perth.

With that figure alone, it quite clearly says that there will be no new office towers built in Perth May 2017

for at least the next two to three years, and if you take that into the equation, that’s going to impact on the need for cranes.

“That coupled with the state of the WA economy, which is still struggling to come to grips with the sudden fall off in the resource sector… There was an expectation for a soft landing for the WA economy instead, it’s become a very hard landing and the WA economy needs to readjust,” Richardson added.

“Especially in the context that the resource construction boom lasted around seven to eight years and there was an unreal expectation that the heightened levels of construction in WA across all subsets of the construction sector would continue on for longer than it did.”

It is of course inevitable that the Roe 8 project would impact civil contractors but Richardson warned that for the cranes sector, things could get far worse because while there still large civil engineering projects underway, such as the development of a tunnel to the Perth airport, these types of work, for example tunnelling, do not require larger cranes on-site.

“So yes, there is a level of activity in the commercial sector, there is a level of work in the civil construction sector as well, but the

level itself is thin and it will remain thin for the next two to three years,” Richardson said.

“The state government is inheriting a fairly perilous financial situation and doesn’t have the necessary money to be able to splash out for large infrastructure projects due to very tight financial constraints imposed on it. The challenge really is for the McGowan government to be creative in how it wants to and needs to fill the gap to keep the construction sector activity going and to keep people employed.

“The new McGowan government has been saying there’s going to be other civil work, possibly rail projects but these are smaller jobs that have already been slated, meaning it’s not new construction work to replace the lost work after the cancellation of the Roe 8 project.”

There could be some good news on the horizon if a recent survey by The West Australian is anything to go by. The survey found that jobs recovery might be looming with construction work estimated to jump 40% this year as billions of dollars’ worth of projects hit the market.

According to the report, this could amount to more than 30,000 new construction jobs, mostly in commercial property developments that are due to start in the next 12 to 18 months.

Only time will tell.

CL 21

FINANCE AND INSURANCE

The complex nature of underwriting cranes Underwriting Agencies of Australia (UAA) are one of the most specialised insurers in the country and across the world, underwriting industrial and commercial plant and equipment including cranes. Kylie Field reports.

U

ntil 40 years ago, crane insurance was unheard of. Cranes were insured alongside motor vehicles (and some still are!), and policies on safety and compliance to industry standards were not on operator agendas.

However, in 1972, a former owner of UAA saw a gap in the market and went to London, where he obtained a product from the world-famous insurers Lloyds of London, which he bought back to Australia and pioneered as the first crane insurance product specifically designed for the Australian market.

Fast forward 40 years, and it’s a very different time and place for crane owners and operators. Australian standards are amongst

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22

the highest in the world and it’s commonplace for insurers to talk about those standards alongside manufacturers guidelines and OEM (Original Equipment Manufacturer) guidelines.

So what’s involved with underwriting a crane and how do you insure a product involved in a high-risk industry?

UAA chief executive officer Michael Murphy (Murf), chief services officer George Grasso, and technical manager Mark Maytom say that underwriting cranes is complex.

“From an underwriting perspective, there are a number of things. Where are the machines located?

What sites are they working on? Are they metro or rural environments and are they mobile or fixed tower cranes?” Grasso asked.

“We look at geography, the value of the machine, the experience of the company and the operators. We look at what hazards they are faced with and the type of occupation they work with. Things like cranes working in a small commercial type building or larger building sites, cranes working in mining and so forth. All of this is taken into consideration.

“When we talk about high risk, we don’t see it as high risk because for us, it’s our bread and butter, it’s our heritage.

We are used to what happens in the industry, we understand it and we learn from the industry.”

“Technically, cranes are deemed a motor vehicle because they drive on the road and are registered. One of the key components of underwriting crane insurance starts with the

geographic… Where exactly is the crane located?

For example, there is a difference in having a tower crane in the middle of Darling Harbour to having a tower crane in a cyclone zone in Port Headland.

Another factor will be the experience of the operators. That flows into what is called their claims history,” Maytom added.

“We take that all into the mix, we look at what an average rate is and then we take a number of factors based on this information including machine type. It’s a combination of a number of these factors before we arrive at a result premium.

“If there are natural disasters, the whole insurance industry including cranes, motor vehicles, business insurance and home and contents are affected by premium increases.

It’s highly likely rates will go up in New South Wales and Queensland post-cyclone Debbie so it is likely our rates will go up too.

“We (UAA) always stick to commercially responsible rate increases so they are only ever around 3-5%, whereas property like household insurance might go up 10-15%.”

Murf also noted that UAA does not consider weather to be an operator error, and that is the firm’s key difference.

“If it’s an operational malfunction because of the management of the business or the actual crane drivers, that’s a different story to weather events,” Murf said.

He suggested that it all comes back to experience and because UAA has been in this for so long, they can average it out.

“With these weather events, we have such great technology alongside meteorologists that are able to determine what is going to occur. Being part of the mobile industry, our clients get plenty of warning before an event is going to occur so they are able to get their gear to higher ground,” Murf said.

“For example, we had a client in Dubbo in NSW, who owned earthmoving equipment. He had four or five days’ notice so was able to build a moat around his entire property and was able to save all his equipment.”

Underwriting is based on accidents but Grasso said operators do need to comply with industry standards.

“CICA has been a huge participant in making this industry a lot safer. Unfortunately, a lot of incidents are operator error or lack of training or May 2017

“ Insurance is not cheap but these machines are great working machines and they generate a lot of revenue. The bottom line is, a quality crane is a quality crane anywhere in the world, so it all comes back to the operation of the business no matter where they are in the world” - Michael Murphy (Murf).

UAA underwriting specialists Michael Murphy (Murf), George Grasso and Michael Maytom.

lack of experience. You can be ticketed to operate some machines in five days with no experience.

UAA have been a sponsor of CICA for 20 years and CANZ (Cranes Association of New Zealand) for the past three years, and we have a very strong relationship with them. Our interests are aligned because it is about mitigating risk and making sure people go home safe every day,” Grasso said.

He added that people have to make sure they service and maintain their machines in accordance with Australian Standards and the OEM guidelines, and be trained to industry standards.

“That applies to the whole insurance industry. We can’t mandate it but it’s all about promoting and encouraging the safety standards of the industry and those that CICA recommends,” he said.

UAA have approximately 60% or more of the crane market in Australia and for them, the

relationship with CICA is very important as is their relationship with Crane Association of New Zealand.

“These two bodies are upheld by us as very valued partners in the crane industry and we will continue to invest in and support,” Murf said.

“We also provide feedback on what types of claims we are seeing and hopefully push that message through to the membership base.

“Insurance is not cheap but these machines are great working machines and they generate a lot of revenue. The bottom line is, a quality crane is a quality crane anywhere in the world, so it all comes back to the operation of the business no matter where they are in the world.

March is the biggest month for crane insurance renewal and Grasso said they personally go and speak to the brokers of the major crane companies.

“It’s not about price, it is about what you’re

buying and investing in with the insurance cover and making sure you’re getting cover that is specific to cranes. We have listened to the industry and tailor made the product to the industry specifically and that is key as well as making sure you’re insuring with an Australian-based company, so at the time of need, someone is looking after you. We have aligned ourselves with the industry so we can deliver that,” Grasso said.

“In conjunction with one of our major brokers, we received feedback from one of the biggest crane operators in Australia and in Sydney, he has contracts running through till 2023 and that’s contracted work. At the moment, there are more tower cranes in Sydney than anywhere else in the world. The cover we provide to the crane industry is now used in 13 countries around the world and that’s CL world’s best practice,” Murf concluded.

CRANE SUPPLIER

May 2017

23

VEHICLE LOADING CRANES

On the move with VLCs Designed for use on a truck, a vehicle-loading crane is a crane mounted on a vehicle for the purpose of loading and unloading. There are various models and a variety of lifting capacities, each one specific to the job.

Kylie Field finds out more.

Cranes and Lifting turned to a handful of VLC distributors to offer a snapshot of some of the machines that are available to the Australian market, including information about their key features.

MAXILIFT AUSTRALIA

HIAB

Model: Maxilift Range Maxilift has Australia’s largest range of small mono-boom cranes. From our 1/2TM M50 Ant (fully hydraulic crane), through to the ML510, we can offer a solution for any vehicle.

The Maxilift Range is extremely versatile. The company’s factory-trained technicians are easily able to add winches, remote controls and augers. The full range is supplied with safety features meeting not only the Australian Standards, but also the customer’s needs.

Lifting capacity: 0.5TM – 5TM Maximum outreach: 6.83m Manufactured in: Italy Base price: P.O.A More: www.maxilift.com.au or 08 8326 6300

• Hiab’s range of small T Cranes range from 0.9 tonne metre to 3.8 tonne metre

MAXILIFT AUSTRALIA Model: Effer Cranes - Effer 215-6 ICON From 3TM to 300TM, Effer are the world leaders in large capacity knuckleboom cranes. Our Effer 215-6 is a 20TM crane with continuous slew and top of the range electronic management systems.

The Effer 215-6 is the only crane in its class offering continuous slew. The Progress 2.0 advanced safety management system is a sophisticated electronic control system with integrated proportional stability and four working areas. Not only does it have the highest quality technology, it also looks amazing!

Maximum outreach: 16.77m (lifts 865kg) Manufactured in: Italy Base price: $90,000 More: www.maxilift.com.au or 08 8326 6300

• Hiab’s range of Knuckleboom VLCs range from 2.2 tonne metre to 75 tonne metre.

• Hiab’s large T crane the T160 is a 15.5 tonne metre crane.

Maximum outreach: Hiab’s small T cranes outreach range from 2.7m to 6.9m depending on crane model and boom configurations. Hiab’s Knuckleboom VLC’s range from 6.1m to 24m on the main boom depending on model and boom configuration, to gain additional reach on our larger model range the addition of fly jibs are possible. Hiab’s large T crane the T160 has a maximum outreach of 18.7m.

Base price: P.O.A Special features: Hiab’s entire range has been specifically engineered and designed to exceed the current Australian Standards: Some of the many safety features offered as standard across the product range are: • Operator Protection System (OPS) • Overload Protection System (OLP) • High boom warning with cabin lamp and buzzer (HBW) • Variable Stability Limit (VSL) • Stabiliser Not Locked with cabin lamp and buzzer (SNL) • Stabiliser Not Stowed with cabin lamp and buzzer (SNS) • Data Logging • Wireless Remote Controls (Available on Hi Duo Models) More: https://www.hiab.com/en-AU/HIAB/ or 03 8793 3400

600 CRANES AUSTRALASIA Model: Fassi - F185A XE-DYNAMIC

MAXILIFT AUSTRALIA

Lifting class: highest moment 18.3tm/180kNm

Model: Unic Cranes - Unic 646-AU-RR Unic Cranes offer a full range of telescopic boom winch cranes from 3.9TM to 20TM. The Unic 646 comes compete the UNIC Stability Control System – offering three position settings and the Super ML Remote Control with accurate and live digital load readings. Tilting outrigger legs complete the package for a superb 16TM Crane.

Maximum lifting capacity: 6450kg Maximum outreach: 18.82meters (lifts 350kg here) Manufactured in: Japan Base price: $85,000 More: www.maxilift.com.au or 08 8326 6300

Maximum outreach: up to 22.55m with jib

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Overall dimensions: from 2.45m (W), 0.85m (L), 2.35m (H) Electronic/hydraulic equipment: control unit FX500, D850 digital distributor bank, RCH/RCS radio remote control unit, ADC automatic dynamic control, flow sharing.

Characteristics: dynamic version (.2): with linkage, XP device, Prolink system with double linkage, rotation 416° with rack and pinion Base price: P.O.A More: www.600cranes.com.au or 1300 551 075

CL

May 2017

SAVE TIME BE FLEXIBLE Full-Power-Boom • Quick and simple telescoping • Continuously variable even under load

Flexible on the construction site • Short set up time, easy to transport • Travel under 100 % load

r IV Tie

liance • low consu comp mp tio n sion reduced s i m e

www.pacecranes.com.au

PACE CRANES Mortdale, NSW, 2223 5-7 Lorraine Street, Peakhurst, NSW, 2210 Tel. 61 2 9533 5411 Fax 61 2 9533 5585 sales@pacecranes.com.au

Balancer 130-300 t

Material Handling Duty Cycle Crane Telescopic Crane 20-160 t 30-300 t 8-120 t

Crawler Crane 80-300 t

ACCESS EQUIPMENT

Relight my fire A saturated market and a downturn in infrastructure projects has slowed the mini crawler crane market in recent years, but now, a surge in construction projects, especially in Sydney, is set to re-ignite the waning Australian market. Jan Arreza reports.

A

t CONEXPO-CON/AGG in March, mini crawler crane manufacturer Maeda made a splash, introducing its new CC1485, the only small telescopic boom crawler crane marketed in the US. Things appear to be picking up in North America, if the turnout, general sentiment of attendees, and sales made at CONEXPO are anything to go by (more on page 16) but how is the mini crawler crane market doing in Australia?

At home, the mining boom, which dictated so many operations and played an integral role in driving the crane sector’s (and others’) profits up, is but a distant memory. Say “mining” and most people sigh. But there seems to be a light at the end of the tunnel, for mini crawler cranes at least.

In Australia, Pace Cranes has for many years, distributed Maeda mini crawler cranes.

It also works with Preston Hire to supply these machines to the market. The Maeda-Pace Cranes association has been going strong for more than two decades and today, Maeda has captured some 80% of the mini crawler crane market share in Australia.

Pace Cranes national sales manager Michael Cawston told Cranes and Lifting that things are looking up for the mini crawler crane sector, which he said was waning, thanks to the recent surge in infrastructure projects.

“There has been a lot happening in terms of construction around the country. Of course there is a bit of a downturn in parts of the country like in Western Australia, but everywhere else, a lot still seems to be happening, and it looks like it’s going to continue,” Cawston said.

“There are lots of projects relating to roads and high-rise infrastructure, and NSW and Victoria are probably the two strongest markets at the moment.

“In terms of Sydney, most of the high-rise constructions have got these types of cranes, to some extent, being used, and there are a lot of projects happening around Sydney Harbour, Darling Harbour, and Barangaroo - there are always a handful of mini crawler cranes working on those sites.”

Typically, mini crawler cranes come on tracked or wheeled chassis, are capable of 360-degree rotation, and have legs that lock into place to allow the units to safely position

26

themselves on steps, multi-levelled platforms, and other uneven or rugged terrains. Their manoeuvrability also offers users ease of use and of course, eliminate the need for scaffolding.

Brandon Dick from Sydney Glass Lifters, which provides mini crawler cranes around New South Wales, said these machines are increasing in popularity.

“I’m finding that there is quite a bit of work for them lately - we get a lot of clients from the steel and glass side of things, to builders for residential houses, as well as quite a few from the commercial realm,” Dick said.

“A lot more people now know that they exist, whereas before, they would get a bigger crane or go for a different option. Now they know that there is a smaller option so they tend to go with them a lot.

“They’re great for a whole range of different things because you can put them in so many different places - basically you can lift them up, chuck them on a roof, leave them there and they can do work off the roof instead of setting off a big crane every day.”

On the backdrop of increasing demand, Pace Cranes is about to launch a higher capacity Maeda crawler unit, which will arrive in August.

According to Cawston, the new model - the MC815C- is quite unique in comparison to other mini crawler cranes in the market and the company hopes it will shake things up.

The MC815C is Maeda’s largest capacity and strongest mini crawler crane to date with an eight-tonne lifting capacity. It is equipped with a five-section 19.4m pentagonal boom, and comes with an optional two-section 1500kg capacity telescopic jib, which increases the maximum lifting height to 25.5m.

New features on Maeda’s latest mini crawler cranes also include power-lifting mode, joystick control, new Technos 2 radio telemetry system with joystick control, auto levelling via remote, auto crane stow via remote, Maeda Safety Operation System (MSOS), and EU stage 3B compliant engine to make it environmentally friendly.

There are also other standard features such as an outrigger interlock device, two-speed powerful winch, hydrostatic transmission, data logger, 6/4/2 fall hook block, tilt sensor/ alarm, and a full hydraulic slew brake.

“Generally with these mini cranes, you control the cranes with levers, whereas the new Maeda is controlled with joysticks, sort of like the much larger cranes,” Cawston said.

“Over the years, these mini crawler cranes have slowly been getting bigger and more accepted in the market, and we are seeing that these types of cranes are becoming more popular on sites than the larger cranes.

“We’ve been working in this space for a very long time and nothing really new and innovative have come along in a while, but with these eight-tonne cranes that we’ve got on the way, you’ll star t to see these mini cranes being used on much larger applications.”

But is the crane’s increasing popularity necessarily a positive? Coopers Heavy Industries director Dylan Cooper told Cranes and Lifting there is a downside - it’s this popularity that has caused the slowing down of the market in the last few years.

Despite the recent uptake of projects, Cooper remains cautious.

Where the expectation is that for special events or seasonal applications, many businesses and organisations will opt to hire mini crawler cranes as opposed to buying them as this is a more cost-effective way to take advantage of the machinery without the expenses associated with maintenance, storage, and parts replacement costs, this has changed over the years.

“As a provider of mini crawler cranes I think the market is so saturated at the moment, with a lot of end users buying the machine for themselves instead of hiring,” Cooper said.

“I think there are a few companies out there that are getting pretty excited and are buying up machines like crazy, but realistically, the surge in work has got to slow down again at some point - it’s going to happen, it’s inevitable, and it’s just a matter of when.

“I think it will be interesting for a few companies that have gone out in say the last 24 months buying up a lot of gear, because at some point they’ll get to a scenario where there’s not going to be heaps of work. By then, they won’t have the equity in the machines anymore, and they won’t have the possibility of moving the machines on to someone else,” Cooper warned.

CL May 2017

The wide and varied uses of mini crawler cranes has led to an increase in its demand and popularity. Here, the Maeda MC285C is working on top of a building in the Gold Coast.

Mini crawler cranes, like the Maeda MC285C pictured, can be safely positioned on steps, multi-levelled platforms, and other uneven or rugged terrains.

May 2017

27

LEGAL

Small business and unfair contract terms within the construction sector: are your contracts compliant?

What contracts are regulated This new law makes unfair terms in small business contracts void. In order for the law to apply, the following must be present: • at least one of the parties must be a small business (meaning fewer than 20 employees by headcount, which includes full-time, part-time and regular and systematic casuals); • the upfront contract price must less than $300,000, or less than $1m if the contract exceeds 12 months; • the contract must be a standard form contract (i.e. drafted by one party and put to the other with little opportunity to negotiate); and • the contract must contain an unfair term.

Where these factors are in place, the unfair contract term will be declared unlawful and severed from the contract on application of one of the parties, with compensation also being available to the aggrieved party.

The following issues are particularly relevant to small businesses within the construction sector.

The unfair contract terms regime and the construction sector standard form contracts The Australian Standards forms dominate the Australian construction contracting landscape.

The wide range of forms available in Australia serve as an efficient and effective means of drafting contracts.

The most commonly-used standard forms for commercial building work are the Australian Standards (AS) 2124-1992 and AS 4000-1997 (General Conditions of Contract – for construct only delivery), combined with their variants AS 4300-1995 (general conditions for design), AS 4902-2000 (general conditions of contract 28

for design and construct) and AS 4122-2010 (consultant agreement).

Standards Australia is currently revising the suites of AS 2124-1992 and AS 4000-1997.

It is proposed that the two suites will be merged into a new suite of AS 11000: General conditions of contract. In addition, and more likely to apply here, we have AS4905-2002 and AS4906-2002 (both minor works contracts).

The Australian Standards forms have not been amended to reflect SBUCTA and are unlikely to be as these forms are used on both big and small projects, and with big and small businesses. Accordingly, it would be inappropriate to redraft to accommodate the new unfair contract terms law, when it will not always apply.

Issues with risk pass through One issue that will certainly arise however, is that on a large construction project, a head contractor will be required to take upstream risks in the contract that may otherwise be unfair and will not be able to pass these down to a subcontractor with fewer than 20 employees if the value of the work is less than the prescribed level of either $300,000 or $1m. This will create a gap for the head contractor that it will be left with, with its only choice being to: • negotiate the ‘unfair’ clauses upstream; • choose a subcontractor that is not a small business; • take those risks and accept they cannot be passed down.

Special purpose vehicles As stated, the new laws apply to businesses with fewer than 20 employees by head count.

This is counted having regard to the contracting entity only and not, for example, an entire group

or a number of related entities. Where entities set up subsidiaries for a particular contract, project or purpose, the contracting entity may be small but the related (sometime parent) entity could be very large.

These situations are very common in the construction and infrastructure sector and will mean that these new laws may apply where entities would not necessarily expect them to, or indeed need them to, as the contracting entity will itself, or will be part of a group, that has substance that is not one, which this legislation has been introduced to protect.

Common unfair terms A term will be declared unfair if: • it causes a significant imbalance in the parties’ rights and obligations under the contract; or • it is not reasonably necessary to protect the legitimate interest of the party who would be advantaged by them; or • it would cause detriment to a party if it were relied upon.

The ACCC investigated standard form contracts in various industries and published a report in November 2016 called ‘Unfair terms in small business contracts: A review of selected industries’, which highlights some terms of concern. Some of these that are particularly relevant to the construction sector are highlighted below.

1. Right to unilaterally vary the contract Broad and unfettered terms that allow unilateral variation for any reason and/or when prior notice is not provided may be unfair.

This occurred in ACCC v Bytecard Pty Limited (Federal Court July 24, 2013) when it was held that the right to unilaterally alter a contract was May 2017

The Treasury Legislation Amendment (Small Business and Unfair Contract Terms) Act 2015 (Cth) (‘SBUCTA’) commenced on November 12, 2016. This law extends the existing unfair contract term regime that applied to consumer to a new category of ‘small business contracts,’ write Scott Alden and Lauren Stables.

Holding Redlich partner Scott Alden.

unfair. Whilst this case was a case involving the IT sector, these kinds of clauses are common in construction contracts.

2. Automatic rollover Automatic renewal terms that do not provide reasonable notice to notify and/or a period to exit the renewal may be unfair. This occurred in ACCC v Chrisco Hampers (Federal Court 2016), where it was held that an automatic rollover clause was unfair. Again, these clauses are very common in the construction industry and particular in service and maintenance contracts.

3. Early termination fees These are fees payable by a party in the event of an early termination of the contract.

Again these are common in construction contracts and are subject to the unfair contract terms regime.

4. Liquidated damages Liquidated damages are a feature of most construction contracts. Where the liquidated damages regime is not a penalty, and so passes that test, it still may be considered unfair depending on the amount, when it applies and also when considered in light of the actual losses being suffered. The application of these laws to liquidated damages will be interesting in the context that, previously, provided they were not penalties, they were valid and enforceable.

This will no longer be the case.

6. Termination clauses with no cause Termination for convenience clauses are very common in construction contracts and project agreements. This is particularly the case in government contracts, and therefore back-to-back subcontracts. These clauses will be void where they are unfair, which is likely if they are one-way, do not provide for appropriate compensation or are found to not protect a legitimate business interest.

7. Wide indemnities Construction contracts tend to contain broad indemnity clauses. These will be subject to this legislation particularly where there is no link to liability and they go well beyond the general law position, which is often the case.

5. Limited liability

8. Wide discretionary powers

A common feature of most construction contracts is a limitation of the parties’ liability to each other. This limitation of liability will be reviewed under this legislation where it applies and where the clause is unfair.

Construction contracts often contain clauses in favour of the principal (against the headcontract) and head-contractor (against its subcontractor) enabling that party to unilaterally determine rights (for example to a variation or

May 2017

to an extension of time) and certify work. These unilateral and broad discretionary powers will be void and unfair.

What can and should parties do?

Parties to construction contracts should consider if the new laws apply to their contract and if they do, they should consider amending clauses that may be found to be unfair and then consider whether they amend those clauses or seek to make an argument that they are necessary to protect a legitimate business interest.

Scott Alden is a partner at Holding Redlich and he advises private and public sector clients on large-scale strategic infrastructure projects. He acts for owners, contractors and bidders in relation to all aspects of a project including construction, procurement and probity (contact: scott. alden@holdingredlich.com). Lauren Stables is one of the firm’s graduates (contact: CL lauren.stables@holdingredlich.com).

29

OVERHEAD AND GANTRY

Keeping it in the family Charlie Eilbeck has big shoes to fill and he knows it. His father, Tom Eilbeck, is a visionary force in the crane sector and owner of the 110-year-old Eilbeck Cranes. But Charlie’s not perturbed; in fact he’s just the opposite. Engineering is in his blood and he’s embracing the challenges head on… and with his father’s guidance. Kylie Field reports.

E

ilbeck Cranes is a private, 100% Australian owned company. It is also one of the only companies to still manufacture among other things, overhead cranes in Australia. It lives by the philosophy that Australian companies like Australian cranes, largely because these firms are able to build fit-for-purpose overhead cranes and other machinery.

“With our main competitors, you can have whatever you want as long as it’s in the catalogue, but we are both a solutions-driven company, and we also work with a catalogue.

We are also one of the largest agents outside of Germany for the hoist manufacturer ABUS. It’s a challenge when someone comes to us with something outside the box, and requires a customised solution, but we can deliver it in the timeline required,” Eilbeck Cranes sales manager Peter Heinrichson said.

30

Heinrichson added that as a company, they don’t walk away from anything, even if customised solutions can be high risk and things don’t always go to plan.

“All the large contractors in Australia, like John Holland, Lendlease or CBC continue to come to us and at the moment we have $10 million of customised cranes in Sydney. We run on word of mouth from Australia and overseas,” he said.

One of the most important relationships Eilback Cranes has within the crane sector is the one with mobile crane operators.

“The interface with the mobile cranes is the most important one, but it’s also the shortest. It all happens in a couple of hours but we can’t install our equipment without it, so it’s an incredibly important one. We have a great relationship with large mobile crane companies in Sydney and work heavily with

Melrose Cranes and Rigging. They will carry out a lift study based on the requirements, and we rely heavily on them for the lift study and their experience on that side of the business,” Heinrichson said.

“We put equipment into very low short spaces inside a building, and we are trying to fit into the right area, plus we have a narrow window to work within. There are a lot of obstacles because the building is already up and we have to trust others are doing the job to a very high professional level,” he said, adding that in their years of operation, the company has never had an issue but have seen other people have problems by not using a reputable mobile crane company.

Charlie Eilbeck stressed that the company will always review the lift study so their project managers are aware of the site and know what the building and structure are.

May 2017

“They know what the product is like and ensure it’s going to do the job,” he said.

Overhead cranes can lift, handle, and lower loads of 120 tonnes, can be semi-automatic, and have the capacity to be fully automatic.

“The equipment we recently supplied for WestConnex and NorthConnex runs in a semi-automatic mode and has the capacity to be fully automated and have a remote control.

They can be hardwired pendant-controlled or panel-controlled but that’s an old school thing,” Heinrichson explained.

“It’s all radio-controlled and automated as much as it can be. The technology we work with is predominantly coming from Europe.

We are embracing that and the reason is, we get excellent support form the European companies, and they do have the most cuttingedge technology. Radio controls and variable speed drives - those types of thing are coming out of Europe and they are first class and work.

“We have very few hardware issues because we use high end products. We also use companies that are supported in Australia, so we have that interface with them as well.”

Eilbeck said it is important to have product knowledge and for him, the best way to have learned about overhead and gantry cranes was to build them.

“I spent a long time building girders and was guided by the people who work here. We are starting to lead this into a global market because we have saturated the Australian one, and will continue to do so. We are building

Hardware and software is cheap but investing in a person is priceless. The investment Tom Eilbeck has put into people and them converting that into something that is tangible is something you can’t put a price on. We are up against billion-dollar companies and we outsell them three to one - Peter Heinrichson. other factories and showing our customers that we are not going anywhere and we will keep production in Australia,” he said.

Machinery aside, the firm also invests in its people and Eilbeck Cranes is the only crane

company, according to Heinrichson, that has a team of 12 engineers.

“Hardware and software is cheap but investing in a person is priceless. The investment Tom Eilbeck has put into people and them converting that into something that is tangible is something you can’t put a price on.

We are up against billion-dollar companies and we outsell them three to one,” Heinrichson said.

“Our machines are all over Australia, and we get requests for parts for machines that are 30 to 40 years old. Our return business is more than 95%.

“We are a hard core Australian company and we make things happen that are not easy to do. And we believe you have to adapt to your environment and be flexible. We can change direction from the morning to the afternoon on every level. The Eilbecks are the drivers of the business and we are open to everyone because they are the chess pieces. We can work with them and manipulate to get the outcomes people want and they keep coming back.

“We are competitive with what we do and we are investing here and in people. If we were only here for the money, we would have taken the business overseas but we are here for the glory, plus it’s a family business and we are leaving a CL legacy,” Heinrichson concluded.

The 110-year-old family company intends to keep crane manufacturing in Australia for the long-term.

May 2017

31

PICK AND CARRY

Celebrating our love for Franna

Australia has a love affair with pick and carry cranes, a relationship that began when the first Fowler tractor crane appeared Down Under in 1943. But it is the Franna, a locally made pick and carry crane that has transformed the market.

THUS, it is only fitting that Cranes and Lifting casts its eye on the Terex Franna, as part of our look at pick and carry cranes, particularly as the company continues to keep its customers excited, launching its latest secret weapon, the AT40 at the 2016 CICA Conference.

1980 AUSTRALIAN engineer Dave Francis developed the very first pick and carry crane prototype from truck components.

He named it Franna after his last name, Francis, and his daughter, Anna.

1983

1991

BRIAN Haintook and Lou Parolin took over the company but continued Francis’ legacy by manufacturing pick and carry cranes based on his original design.

The Franna took Australia by storm, largely due to its high speed, moveability, and versatility. So popular was the Franna that much like Tupperware and Scotch tape, Franna became the term used generally for pick and carry cranes, regardless of the manufacturer.

THE Brisbane plant, which played a lead role in the development of the Franna, developed a special Drag Line maintenance version of the cranes in conjunction with Australian coal industry.

1999 US-BASED Terex acquires Franna.

THE FRANNA FASCINATION TODAY, the Franna is sold globally and four main products sit under Terex’s pick and carry offering (more below). There are a few key features however, that are worth noting, including: • Cabin comfort: the cabin has a spacious interior, a binnacle-type dashboard, pilot-operated hydraulics, and a digital load indicator.

• Engine design: the hydraulic oil and fuel tank are integrated around the six-cylinder turbo-charged and intercooled engine in the rear body.

The cranes also come with the latest design in adjustable wear pads and boom structure up front.

But it goes beyond these features. The other reason why the Franna is popular in Australia is because they are able to travel large distances and can be more flexible than truck-mounted cranes. And without outriggers, these cranes can pick and carry a load without the need for a truck.

Additionally, a pick and carry crane’s flexible steering option means the machine can move in tight spaces.

The Franna continues to be manufactured in Australia at Terex’s 4000 square metre Brisbane plant in Eagle Farm.

THE MACHINES AT-15-3 Max. lIfting capacity: 15t Max. boom length: 17.9m Max. tip height: 18m Drive engine/make: 6-cyclinder turbo; Mercedes Drive engine/power: 170kW Driving speed: 70km/h No. of axles: 2 AT-22 Max. lifting capacity: 22t Max. boom length: 17.9m Max. tip height: 18.2m Drive engine/make: 6-cyclinder turbo; Mercedes Drive engine/power: 205kW No. of axles: 2 MAC25-4 Max. lifting capacity: 25t Max. boom length: 18.4m Max. tip height: 19.4m Drive engine/make: 6-cyclinder turbo; Mercedes Drive engine/power: 205kW Driving speed: 70km/h No. of axles: 2

A BIG ONE THEN, in September last year, Terex unveiled its largest Franna yet, the AT40.

The AT40 is Terex’s first three-axle pick and carry crane and boasts a capacity of 30t on hook lock and 40t on boom lug. It has a maximum boom length of 19.8m and a maximum tip Terex’s latest pick and carry crane, the AT40, was height of 19m. Like the AT-22 and unveiled at the 2016 CICA conference in September.

MAC25-4, the AT40 is powered by a Mercedes 205kW diesel engine.

Terex general manager Danny Black said at the unveiling of the AT40 that the machine is a step change in performance and comfort.

“Three axles with the counter weights carried on the back. It has a precise hydraulic sensitivity. Load sharing with soft functions on the crane. Greater stability and a patent pending articulating counter weight, which will give more stability when working on a side slope,” Black said at the launch last year.

“Our innovative design team have come up with a patent that lifts the rear axle that gives the same turning circle as the MAC25 in crane mode. More comfort with hydro pneumatic suspension; 180-degree vision from the cabin which is isolated for more comfort.

“Welcome to the next generation pick and carry crane.”

It is understood that prototypes of the AT40 are undergoing extensive trials and production is scheduled to start shortly.

CL

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May 2017

NEW ZEALAND

Lifting your game NZ style With annual construction growth of 7% since 2011, driven largely by the residential construction sector and record population growth, New Zealand has been a bright spot for the industry in the region. In this same period, crane activity in New Zealand has almost doubled, according to the RLB Crane Index. With this growth comes new challenges for the cranes and lifting industry in New Zealand, writes Ross May.

As with previous years, this year’s conference will be a time of learning and sharing insights.

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onfronting these challenges head-on, Crane Association of New Zealand (CANZ) chief executive Rod Auton and his team have put together a program for the crane industry’s premier event in July that continues the focus on business building that has driven industry development these past three years.

“It’s about Lifting Your Game. This year, we are looking at the crane industry and some of the changes that the industry is undergoing like working around wind farms, diversification of crane fleets, the Christchurch earthquake response to 2017 and what’s happening around crane inspections,” Auton said.

And it’s this theme of ‘Lifting Your Game’ that has driven CANZ to secure international renowned keynote speakers who know how to lift the game.

“Ngahihi o te ra Bidios with his ‘Ancient Wisdom and Modern Solutions’ relates his heritage in a modern business world and

A range of exhibitors will be showcasing their equipment, services and innovations at the 2017 conference.

Billy Graham, entrepreneur (not evangelist), and pugilist will speak about keeping your guard up and enjoying the journey,” Auton said.

The ‘Project of the Year’ format has changed this year with a rename to the ‘Lift of the Year’. It also has a more simplified entry process so that more members can participate. All members are encouraged to go head-to-head with their peers to see who is the best of the best.

As always, the conference will build on the industry’s progress on training, safety and road access issues, and call on the leading manufacturers to update the industry on the technologies and innovations that will fuel efficiency and growth in the years ahead.

The 2017 CANZ annual conference, trade show and awards celebration, including ‘Lift of the Year’ will be held from July 19-21 at the Novotel Hotel in Rotorua, New Zealand.

To find out more, download the full program CL at www.cranes.org.nz

Exhibitors and Sponsors include • Allcrane Sales & Services • AMS Group • Assessing and Training Services • Australian Crane & Machinery • CablePrice (NZ) • Cookes • HIAB • Hitachi Sumitomo • JLT • Kato • Liebherr Australia • Manitowoc • Morrow Equipment Co

• NZ Print • NZ Trucks • Pace Cranes • Palfinger • SGS • Standens • Tadano • Terex • The Skills Organisation • Tidd Ross Todd • Titan Equipment • Titan Equipment • UDC Finance • Underwriting Agencies of Australia

The July event will also provide delegates with a great opportunity to network and discuss ideas.

All images courtesy of CANZ.

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May 2017

PROFESSIONAL SERVICES

Tackling challenges in an expert fashion After 35 years, Aztec Analysis has recently streamlined its trading name, merging it with parent Wallbridge & Gilbert to create a single brand - Wallbridge Gilbert Aztec, or WGA. Rodger Weste, WGA’s manager industrial details what the rebranding means for clients and discusses a recent project that came with a number of engineering challenges.

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GA was recently engaged to assist Downer Group with the dismantling of two massive transmission towers crossing the Port River in Adelaide. Owned by Electranet, the 108-metre-high towers were redundant and, because of their ageing condition, had to be very carefully dismantled and removed.

The project presented a number of engineering challenges. The towers were known to have deteriorated and therefore had to be assessed structurally for each stage of the operation. All weights had to be estimated and then, following AS 2550, magnified by 50% to allow for uncertainty and risk.

The soil conditions are very poor at each site, being estuarine muds and silts, with ancient mangrove deposits and later fill. These soils are notoriously weak and WGA had to design, and then project manage, the construction of two massive pads from which to set up and operate the crane.

WGA’s geotechnical experts drilled the soil and devised a simple pad which, after a process of proof testing, was capable of withstanding the huge outrigger loads without dangerous settlement. During the initial earthworks preparation, the surface subsided nearly one metre!

Adding to the site constraints and stakeholder management complexities, the towers were located on opposite sides of the Port River, with one tower directly adjacent to a crucial gas main feeding the Torrens Island Power Station, and the other on a busy part of ASC Shipbuilding’s site.

A Terex AC 500-2 from Max Cranes was selected for the job, using a 72m luffing fly jib on a 52m main boom. This 500-tonne crane May 2017

The Aztec Analysis rebranding AZTEC Analysis was originally formed by Mark Gilbert, who gained valuable expertise working on North Sea construction projects in the 70s and 80s. His first job in Scotland created a world record when they lifted 2000 tonnes with two TransiLift crawler cranes and walked with the load.

WGA specialises in heavy lift and heavy haulage consulting, and is one of the few truly independent expert firms in this field. The services offered include rigging advice, project planning, client representation and risk management, forensic investigations, and assessment of lift studies for complex lifts. With more than 200 personnel across Australia, WGA can provide a range of civil, structural, mechanical and industrial services over all aspects of any complex engineering project.

WGA’s reputation for innovative construction techniques and methodology, using the latest equipment, combined with the confidence to be able to certify the engineering design of a proposal, has resulted in WGA being invited to join many projects at the early planning stage.

WGA’s clients range from all of the major resource companies in Australia, including tier one contractors, right down to the small one-crane company looking for professional advice. They have assisted crane companies, regulatory authorities, government bodies and many other groups with all forms of engineering and assessment to provide solutions Australia-wide.

Senior engineers are CICA-endorsed and several members of the company hold senior committee roles on the Crane Industry Council of Australia.

The practice has grown rapidly as the changing regulatory environment has required owners and contractors to ensure that they are operating within safe guidelines. The ability to assess structural design as well as having an intimate knowledge of cranes, rigging, and safe procedures has been a significant point of difference for the practice, resulting in their success and sustained growth. with super lift was needed to safely remove 10 to 12-tonne pieces from the very top of the tower down to ground level.

WGA provided independent verification of the lift study and also verified the structure for each lift.

After the successful completion of the project, Downer site manager Ross Crust wrote: “We were extremely impressed with the professionalism of the team and the support that they gave us. It was a complex project, with numerous stakeholders and a large number of subcontractors, all required to work as a

WGA was recently engaged to assist Downer Group with the dismantling of two massive transmission towers.

cohesive team for three weeks. WGA played an integral part in assisting with the management to aid in a successful outcome.”

Rodger Weste is WGA’s manager for industrial projects, clientele and business development. He specialises in project management, key relationship, and business development. Weste also has more than 10 years of experience in the crane and transport sector, managing and developing the growth of one of SA’s largest crane companies.

Contact: rweste@wga.com.au CL 35

ASIA PACIFIC REPORT: SINGAPORE AND MALAYSIA

Genie works its magic Spanning 2000ha and producing nine million tonnes of petroleum products along with 4.5 million tonnes of petrochemicals a year, the Pengerang Integrated Complex (PIC) is one of the largest integrated developments in the chemical and petrochemical industries in the world. Kylie Field reports.

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ituated in Pengerang, Southern Johor in Malaysia, PIC was launched by the Petroliam National Berhad (Petronas) in May 2012, with a total investment of US$27billion (AU$35.72 billion). The complex is expected to produce 7.7 million tonnes per annum (Mtpa) of differentiated and specialty chemicals such as synthetic rubbers and highgrade polymers. Expectations are that Southern Johor will be transformed into a petrochemical hub with the project expecting to meet demands in the Asia Pacific region for the next 20 years.

One company that is on the frontline with the project is Genie, which has been asked to supply almost 700 mobile elevating work

platforms (MEWPs). So far 350 of their MEWPs have been mobilised.

Working across all sectors of the project including steel fabrication of refineries, and in welding and paintings, Genie is meeting the demand.

According to Equipinc Sdn Bhd chief executive officer Tek Siong Cheam, the Pengerang Integrated Petroleum Complex (PIPC) is one big step in creating value to the downstream oil and gas chain in Johor.

“There are two projects in the PIPC, the Pengerang Independent Deepwater Petroleum Terminal (PIDPT) and Petronas 60 billion Ringgit (AU$18 billion) Refinery and Petrochemical

Integrated Development (RAPID) Project,” Cheam told Cranes and Lifting.

“The RAPID project site is in progress and is expected to be commissioned by 2019. Initial completion date was 2016 but it’s good for our industry because the peak requirement for machinery will stretch out so it’s not a boom bust situation.

“There are stringent requirements hence why we are only supplying new units.”

With its four-wheel drive, Genie’s MEWPs are able to deal with the ruggedness of the terrain and, at the same time, operate over long hours.

Its ability to control positioning and precise movements of its booms made it an ideal choice for this project.

Situated close to international shipping lanes from the Middle East and China, the project is adjacent to Singapore, currently one of the largest and most sophisticated shipping ports in the world. The area is relatively unpopulated and there is no breakwater. meaning that there is sufficient passage for VLCCs and ULCCs along with the harbour being sheltered and safe.

Genie suggests that as the project develops over the coming years, it is estimated that the requirement for MEWPs will increase to thousands of units. The current demand already outstrips supply, so both new and used machines have been deployed to make at least 55% of the requirement for the jobsite. With the project expected to take 12 years to complete, Genie will continue to be the supplier of MEWPs. “The demand and supply curve is balanced now with some capacity mix changing, but the quantity we supply will remain the same. At the moment, boom dominates scissors but maybe we will see more scissors later in the project,” Cheam said.

“The RAPID project site is in progress and is expected to be commissioned by 2019.

Initial completion date was 2016 but it’s good for our industry because the peak requirement for machinery will stretch out so it’s not a boom bust situation.”

350 units of Genie machines have been deployed so far to the PIC project.

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May 2017

Case study: heaven sent AS the PIC project continues, we turn to another project in neighbouring Singapore that Genie has been heavily involved in.

Since October 2014, the Novena Catholic Church in Singapore has been closed for major renovation. The church, established in 1950, is currently going through one of the most dramatic redevelopments in its history.

When it’s completed later this year, its congregation will get to experience towering pillars, high arches and a grand dome rising high above the altar. The church will also sit on a bigger premise, doubling its capacity to accommodate 1500 people.

To accomplish these renovations, Singapore-based distributor of Genie machinery, Aver Asia, has relied on its fleet of articulated boom lifts and scissor lifts to complete lifting tasks on the project site.

Genie was first introduced to the construction project to lift marble slabs that cover the walls and pillars of the church. Traditionally, scaffold is used in redevelopment of churches to safeguard the historic elements in the building, but with each piece weighing between 50kg and 70kg, it was deemed too difficult and dangerous.

Aver Asia brought a Genie Z-60/34 articulated boom lift into the project since it

Genie works on the restoration of the Novena Church in Singapore.

has a lift capacity of 227kg. With a height of 2.7m, the boom lift was too big to go through the 2.3m tall church doors and the wall had to be removed to get the machine into the church. However, the added construction problem was worth it because the MEWPs spurred the cladding work. The Genie Z-60/34 lift, having a tight turning radius and zero tail swing, offered excellent manoeuvrability and thus was perfectly suited to work in the confined space.

The highest point of the church is the cone shaped steeple, which rises up to 20m, and took the Genie boom less than a minute to reach the highest point. Alongside this were the different height profiles in different parts of the church, which multiple Genie models were also deployed to complete lifting tasks.

The Genie GS 1930 and a Genie Z-45/25 RT articulated boom, with working heights of 7.6m and 15.97m respectively, were used to lay the marble slabs on the lower walls.

CL

May 2017

37

ASIA PACIFIC REPORT: SINGAPORE AND MALAYSIA

Port of the future Some of the key challenges that Singapore faces include an ageing workforce and low birth rate, making growth of the city-state’s workforce almost non-existent. But the Southeast Asian nation has the world’s second busiest container port and in order to remain competitive, Singapore has embraced the application of big data and predictive analytics alongside full automation, writes Kylie Field.

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aritime and Port Authority of Singapore (MPA), established in 1996, is the driving force behind Singapore’s port and maritime development. It is responsible for the overall growth of Singapore’s port, which includes terminal operators PSA Corporation and Jurong Port.

PSA currently operates 60 berths at its seven container terminals in Tanjong Pagar, Keppel, Brani, and Pasir Panjang terminal one, two, three and five, offering connections to 600 ports globally. PSA says its Pasir Panjang terminal is its most advanced, with berths at phase three and four being up to 18 metres deep and equipped with quay cranes that are able to reach across 24 rows of containers to service the world’s largest container ships.

These terminals also feature high-tech port innovations, such as a zero-emission, fully automated electric yard crane system. All up, PSA has 220 quay cranes across its terminals.

In 2013, the Singapore government unveiled

a master plan that included moving the Tanjong Pagar port to Tuas from 2027. In January this year, PSA announced that it had started the relocation and had, in recent months, moved some workers to the new site where they would pick up new skills, including ones related to operating automated machinery. According to The Straits Times, not one worker was retrenched.

As part of its big move, PSA will have the chance to design and build a maritime port for the future from scratch, incorporating new ideas and technologies. PSA will also use this opportunity to future-proof its workforce.

The Business Times reported that by 2030, it is envisaged the labour mix at the Port of Singapore will encompass more highly skilled technicians and engineers with specialised training. The next generation port will also feature digital technology that will boost efficiency and productivity, as well as improve safety and security.

In 2015, the MPA signed a two-year agreement

with IBM to create a unified platform to integrate real-time data and provide a consistent view across data points to help port operators make more informed decisions. The next generation port blueprint also looks at intensifying land-use, raising the level of sustainability and connecting with the community.

Recently, PSA International’s corporate venture capital arm, PSA unboxed, sent out a second call for action for its incubator program, inviting start-ups and potential partners to propose technology solutions in support of PSA’s technology vision for the Port of the Future – CP4.0TM. Head of group technology, PSA International Bee Lock Oh said: “New technologies increasingly transform the way we produce, transact and consume; PSA believes that ports and the larger supply chain can also reap the benefits of these technologies applied.

CP4.0TM is PSA’s transformation blueprint for establishing the Port of the Future: a

Singapore has embraced the application of big data and predictive analytics alongside full automation.

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May 2017

An aerial view of the Port of Singapore. The port services Asia, Europe, America and Russia.

hyper-connected port that creatively deploys smart technologies to deliver sustained value to customers and stakeholders in the port, shipping and broader logistics communities.”

In line with CP4.0TM, PSA has committed about S$150 million (AU$142.29 million) to innovation programs that include automated-guided vehicles, crane automation, predictive maintenance, wharf-side automation and video analytics projects for its terminals around the world.

So how does Australia stack up in comparison? The recent sale of the Port of Melbourne to the Lonsdale Consortium has opened up new opportunities for automation.

While current stevedores DP World and Patricks do not have automated operations at the Port of Melbourne, incoming third stevedore, Victoria International Container Terminal (VICT), will be fully automated when it starts a new terminal at Melbourne’s Webb Dock the end of the year.

Pasir Panjang terminals two and three.

In 2015, VICT spent $21million on control systems and the integration of equipment at its newly built automated terminal, and in 2014, a consortium of Philippines-based International Container Terminal Services Incorporated (ICTSI) and Australia’s Anglo Ports, forked out

$56 million for 12 automated stacking cranes and 11 automated shuttle carriers for the port.

And if Singapore is anything to go by, automation may not necessarily mean jobs will be lost. Perhaps the focus should be on upskilling and future-proofing our current workforce. C L

PSA relies on automated rail mounted gantry cranes to ensure the smooth running of the world’s second busiest container port.

Images courtesy of PSA.

May 2017

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INDUSTRIAL RELATIONS

Is this the right PaTH? The Turnbull government has launched its signature Youth Jobs PaTH (Prepare-Hire-Trial) Internship Program and union and Labour Party critics are vocalising concerns for its pitfalls and exploitative nature, writes Theresa Moltoni.

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he program establishes a framework for businesses to take on job seekers as interns, with the prospect of future employment if both the employer and intern find a fit. It aims to maximise opportunities for young job seekers to find employment and diminish reliance on income support. It establishes a three-stage pathway to employment: 1. Preparation: via employability skills training.

2. Trial: through internship placements.

3. Hiring: via Youth Bonus wage subsidies.

Assistant Minister for Cities and Digital Transformation, Angus Taylor said in his second reading speech in October last year: “The government is committed to ensuring that young jobseekers find work as quickly as possible and avoid moving on to income support and the welfare trap. The Australian community rightly expects that young people should participate in the workforce to the full extent of their capacity”.

The program provides eligible young job seekers the opportunity to participate in a four to 12-week internship with 30 to 50 working hours per fortnight. Businesses and prospective interns can co-design internship placements and the type of work engaged according to the intern’s skills and experience, provided the work comprises normal processes of the undertaking and is structured and meaningful.

The program establishes incentives for both businesses and job seekers to become involved. Participatory businesses will receive a government payment of $1000 for taking on a PaTh intern. There is also a $10,000 wage subsidy incentive to encourage businesses to employ interns upon completing their placement.

Approximately more than 1600 businesses have taken up this subsidy this year.

PaTH interns are paid $200 fortnightly, which under a proposed Bill, will not affect or conflict with their unemployment benefits. The Social Security Legislation Amendment (Youth Jobs Path: Prepare, Trial, Hire) Bill 2016 aims to ensure incentive payments to PaTH interns do not constitute ‘income’ for social security and veterans’ entitlement purposes. If the Bill fails, PaTH interns will have their benefits reduced.

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Eligible participants will be 17 to 24 years old, signed up for six or more months to Jobactive, Transition to Work or Disability Employment Services, and be on income support payments. The eligibility of host businesses is conditional on their provision of prospective future employment for the intern following the internship; that is, the business must have a vacancy that needs filling, will likely have vacancy following the internship or has a regular pattern of recruitment.

Prospective employment for the intern must align with the intern’s interests, experiences and qualifications.

The government is adamant that businesses cannot displace existing employees or reduce a current employee’s working hours to accommodate an intern.

However, critics from various camps have vocalised their concerns regarding the program’s exploitative nature and failure to expand the Australian workforce.

Unions argue the program will displace wage-paying jobs as companies seek to reduce labour costs by engaging interns paid below the minimum wage. Likewise, the Australian Labour Party and The Greens argue that the program opens an avenue for exploitation of cheap labour, depressed wages and displaced jobs. Their concern is that the program incentivises employers to take advantage of cheap labour and government hand-outs by displacing current wageearners with interns earning less than 25% of the minimum wage for a 25-hour week.

By aiming to match job seekers with existing or prospective job vacancies, the program substitutes existing jobs rather than expanding the workforce.

Shadow Minister for Employment and Workplace Relations Brendan O’Connor and Member for Bendigo Lisa Chesters maintain that the program should incentivise employers to increase their workforce with the support of the government, rather than using taxpayer money to displace opportunities for proper employment in real jobs. They argue that the program pays employers to do something they would have done anyway: fill existing vacancies.

In response, the Turnbull government

IRIQ managing director Theresa Moltoni.

maintains that the program will give a leg-up to job seekers struggling to find employment due to lack of experiences or workplace skills. The chances of employment will be increased by regulation around internships that constitute relevant training and experience. The government estimates that the program will assist upward of 120,000 young people with accessing the workforce.

Theresa Moltoni OAM is managing director of IRIQ. She has a special interest in strategic industrial relations and her experience spans more than 25 years.

Contact: theresa.moltoni@iriq.com.au CL May 2017

Experience the Progress.

Mobile cranes from Liebherr Top capacities in all lifting classes Long telescopic booms with variable working equipment High mobility and short assembly times Comprehensive comfort and safety features Worldwide customer support by manufacturer

Liebherr-Australia Pty. Ltd. Mobile Crane Division 1-15 James Erskine Drive Erskine Park, NSW 2759 Phone: (02) 9852 1800 E-mail: sales.las@liebherr.com www.facebook.com/LiebherrConstruction www.liebherr.com.au