Asia Outlook Issue 1 by Outlook Publishing

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It pays to dream big and dream big is what Lian Beng has done

Alfa Tech VestAsia

Bibby Ship Management

Renowned for an unrelenting focus on customer service and delivery

deugro

Pro inflation policy

International project and specialised transport forwarder

Liverpool-based firm recently announced the opening of new offices in Singapore and India

Is Japanâ&#x20AC;&#x2122;s economy in recovery?

Asia OUTOOK ISSUE 01

n e w s

B USINESS

FIN A NCE

T R A V EL

S P OR T

ENGINEERING EXCELLENCE DELIVERED GLOBALLY Providing end-to-end design, advisory and at-risk turnkey project delivery services

Alfa Tech VestAsia Pte Ltd 75 Bukit Timah Road #06-10 Boon Siew Building Singapore 229833

Tel: +65 6333 7737 Fax: +65 6338 7737 Email: zach.wilson@atce.com Website: www.atce.com.sg

W E L C O M E Welcome to Asia Outlook This is an exciting time for Asia business, particularly those with a presence in or considering expansion to SE Asia. Emerging markets are booming. Developed markets are in economic recovery. There are opportunities for expansion - Burma, a great example.

Editorial

Editor: Ian Armitage ian.armitage@outlookpublishing.com Production Manager: Clare Durrant clare.durrant@outlookpublishing.com

Business

Japan has made the recent headlines. Since the spectacular collapse of its 1980s bubble economy it has been in stagnation and decline. Now, thanks to a series of radical, bold steps to revive one of the world’s largest economies, it is in recovery mode. Tokyo stocks have reached five year highs, deflation is under control and interest rates are set to rise. The yen also hit the 100 to the U.S. dollar mark for the first time since May 2009 and has fallen by 25 percent against the greenback since Japan’s cabinet approved a huge economic stimulus package in November. It makes Japanese exports more competitive around the world and has helped boost exporter’s profits. Toyota reported that net income in the last 12 months had jumped threefold and Sony has produced an annual profit for the first time in five years.

Sales Director: Nick Norris nick.norris@outlookpublishing.com

Southeast Asia’s currencies are among the best performers so far this year, led by the Thai baht and Malaysian ringgit. Growth in Southeast Asian nations may average 5.4 percent in 2013, and quicken to 5.7 percent in 2014, according to the Asian Development Bank, which predicts a one percent expansion in advanced economies this year. This presents huge opportunity.

Financial Administrator: Abby Nightingale

This month we talk to Zach Wilson, the Managing Director of Alfa Tech VestAsia, and learn more about the company’s growth in Southeast Asia, particularly how it is targeting the data centre market; we look at project freight forwarding company deugro; and talk with Lian Beng Construction Director Jeffrey Teo. Lian Beng has secured six construction projects worth about S$750 million already this year, taking its orderbook to record highs.

Digital & IT: Hamit Saka

Ian Armitage Editor, Outlook Publishing

There is much more inside. Enjoy the first issue of Asia Outlook, the latest in a suite of new and exciting products from Outlook Publishing, a leader in B2B publishing.

Sales: Eddie Clinton eddie.clinton@outlookpublishing.com Sales: Donovan Smith donovan.smith@outlookpublishing.com Projects Director: James Mitchell james.mitchell@outlookpublishing.com Project Managers: Debbie Clark debbie.clark@outlookpublishing.com Stuart Platt stuart.platt@outlookpublishing.com Stuart Shirra stuart.shirra@outlookpublishing.com Eleanor Watson eleanor.watson@outlookpublishing.com

Accounts

Suzanne Welsh accounts@outlookpublishing.com Office Administrator: Daniel George daniel.george@outlookpublishing.com Magazine Design: Optic Juice Ltd Images: Getty Helpdesk: James LeMay

Outlook Publishing Managing Director Ben Weaver ben.weaver@outlookpublishing.com Chairman Mark Weaver Contact Asia Outlook / UK 22 Wensum Street, Norwich, UK, NR3 1HY Sales: +44 (0) 1603 559 551 Editorial: +44 (0) 1603 559 144 Fax: +44 (0) 1603 559 553 Subscriptions Tel: +44 (0)1603 559 144 ian.armitage@outlookpublishing.com

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C O N T E N T S

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In this issue of Asia Outlook... 06

NEWS All the latest news from across Asia

FINANCE

Pro inflation: Japan’s economy in recovery?

A weaker yen has been good for Japanese exporters. Is it good for ordinary citizens? SPORTS

Field of Dreams Singapore Sports Hub to open by April 2014

Supply chain C ontin u ed e x pansion for de u g ro Asia Outlook talks to Sven Hergemoeller, deugro’s Regional Vice President for South East Asia

Construction

18 30

D are to D rea m It pays to dream big. Dream big is what Lian Beng has done I n v est in S E A sia : A l fa T ec h Vest A sia Southeast Asia has “all the fundamentals” for future success

F ar E astern pro m ise Liverpool-based Bibby Ship Management recently announced the opening of two new offices in Singapore and India

EVENTS Asia’s biggest upcoming business events

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N E W S B u siness

B u siness

Chinese manufacturing growth slows in April

Sony reports first profit in five years

China’s April manufacturing PMI, released by HSBC, slowed in April, adding to concerns about the country’s economic recovery. HSBC’s Flash Purchasing Managers Index fell to 50.5, from 51.6 in March. A drop in new export orders was behind the decline, HSBC said. Qu Hongbin, Chief Economist for Greater China and Co-Head of Asian Economic Research at HSBC, explained: “New export orders contracted after a temporary rebound in March suggesting external demand for China’s exporters remains weak. Weaker overall demand has also started to weigh on employment in the manufacturing sector.” Beijing is expected to respond strongly to sustain the economic recovery by increasing efforts to boost domestic investment and consumption.

Electronics giant Sony has reported an annual profit for the first time in five years thanks to stronger sales and a weakening yen. The Japanese firm said it made a net profit of 43 billion yen in the year to 31 March, reversing a huge loss in the same period a year earlier. The Tokyo-based company said quarterly sales rose eight percent to 1.7 trillion yen, mainly thanks to a weak Japanese yen which makes its goods cheaper for foreign buyers and helped boost sales.

Fin a n c e

Japan recovery “few years” away warns Finance Minister Japan’s Finance Minister Taro Aso has warned that economic recovery is at least a “few years” away and it may take longer than the targeted two years to reverse the country’s deflation. “Let’s say a few years,” he told the Wall Street Journal. “Two to three years. That’s what we are hoping for.” The Bank of Japan’s goal is to reach two percent inflation within two years. Aso said that might be overly ambitious. “We think it may take longer than the BOJ expects. That sounds too quick,” he told the newspaper.

The yen has fallen more than 20 percent against the U.S. dollar since November last year. Sony expects the recovery to continue and projected a 50 billion yen profit for the fiscal year to March 2014, up 16 percent.

B u siness

Hertz partners with China Auto Rental Car hire firm Hertz has agreed a deal to buy a 20 percent stake in China Auto Rental as it looks to expand its presence in China. As part of the partnership China Auto Rental will get a licence to operate on behalf of Hertz in China for an initial term of five years. China Auto Rental is China’s largest car rental firm. “As the leading global car rental brand, it’s a perfect fit for Hertz to partner with the largest and most recognised car rental company in China,” said Mark Frissora, chief executive of Hertz. “China Auto Rental has the largest domestic rental footprint, with 700 locations in 66 cities, and a 50,000-vehicle fleet which is more than four times the size of its nearest competitor. Also,

China Auto Rental is growing rapidly, having doubled its revenues in 2012 to $250 million, 2.5 times larger than any other domestic company. “Hertz is now uniquely positioned among American and European car rental brands to support the rapidly expanding Chinese rental market, as well as China Auto Rental’s growth.” The partnership “fulfils Hertz’s objective to significantly increase its presence in the rapidly expanding car rental market in China,” a statement said.

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B u siness

Tr a ve l

Toshiba quarterly profit falls on weak demand Quarterly net profit at technology and engineering giant Toshiba has fallen 62 percent from last year, with a decline in demand for its televisions, computers and other digital products. The Japanese firm said it earned 23.01 billion yen in the three months between January and March 2013, the last quarter of its fiscal year. That was down from 61.22 billion yen in the same three months a year earlier. “The global economy remained uncertain,” Toshiba said. “Although the United States continued to see gradual recovery, Europe has entered a recession accompanied by deepening anxieties for sovereign debt. The slowdown in growth in emerging economies, such as China and Southeast Asia, also had a negative effect. “There are few prospects for immediate improvement in sight. The downturn in Europe is expected to be prolonged, and it is possible that growth will slow in the U.S. and China,” it added. Electronics manufacturers worldwide are struggling to profit from making televisions with increasing competition in the lowmargin market. Profit margins in Toshiba’s memory chip unit improved but the yen’s depreciation has hurt its flat-panel television and personal computer businesses. “The visual products business saw sales slide on a deepening decline in demand in Japan and sluggish sales in the United States and China,” Toshiba said. “The PC business also recorded a decrease on lower unit sales, due to eroding demand in the United States, while Japan and Europe saw flat sales.”

Boeing delivers 1,000th plane to China Boeing and China Eastern Airlines have celebrated the delivery of the 1,000th Boeing airplane for China, one of the world’s “most dynamic markets for commercial airplanes”. “We take great pride in the partnership that Boeing and China have shared for more than 40 years. Boeing greatly values China as both a customer and a supplier partner,” said Boeing Commercial Airplanes President and CEO Ray Conner. “This delivery symbolises the tremendous accomplishments we have achieved together along with the significant trust and confidence that Chinese airlines have placed in Boeing’s products and services. Boeing is committed to advancing our partnership with China for decades to come.” Boeing forecasts that China will need 5,260 new airplanes, valued at

$670 billion, in the next 20 years. The 1,000th airplane was a NextGeneration 737-800 with the Boeing Sky Interior painted in special peacock livery (pictured). China Eastern currently operates the largest 737 fleet among Chinese airlines. “We’re pleased to be part of this historic delivery for Boeing and China,” said Tang Bing, vice president of China Eastern Airlines. “We look forward to working with Boeing to leverage the reliability, comfort, economics and good environmental performance of Boeing airplanes, and bring more value to our customers.”

Tr a ve l

Airbus wins record order from Indonesia’s Air Lion European plane maker Airbus has announced it has received a record order from Indonesia’s Lion Air for 234 medium-haul A320 jets. The order, worth 18.4 billion euros, was finalised at a special ceremony at the Elysée Palace in Paris. French President Francois Hollande described the deal as “historic” and said it would create 5,000 jobs in France over the next 10 years. Lion Air’s order comprises of 109 A320neo, 65 A321neo and 60 A320ceo aircraft. “The fuel-efficient A320 Family will enable Lion Air to achieve the lowest possible operating costs and continue to offer the most competitive fares in the Asian region,” said Rusdi Kirana, Co-Founder and CEO of Lion Air Group. “This landmark order will ensure that the Lion Air Group will continue its expansion with one of the most modern and advanced fleets in the world.” Lion Air was founded by Kusnan and Rusdi Kirana, who are ranked the 33rd richest Indonesians. Jakarta-based Lion Air has become one of Asia’s fastest-growing airlines.

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N E W S B u siness

Sport

McDonald’s sales hit by weakness in Asia, Europe

Arsenal to play friendly in Vietnam Arsenal will become the first Premier League club to play in Vietnam during their pre-season tour to Asia this summer. Arsenal will spend three days promoting the club in the capital Hanoi from July 15-17 and will field a full-strength team against the national side at the My Dinh National Stadium on the final day, the Vietnam Football Federation said on its website. Arsenal say they have an especially big following in the country and the Asia trip will be the club’s third tour to the Far East in three years. Arsenal’s chief commercial officer Tom Fox said: “Arsenal Football Club has so many loyal supporters all across Asia.

“The Club and the players have hugely enjoyed successful preseason visits to Asia in the past two years, and we are all looking forward to bringing the team to this region again this year.” Rivals Chelsea, Manchester United and Liverpool are also making trips this summer to Southeast Asia, where top European clubs have huge followings and draw large revenues from television and merchandising.

Fin a n c e

BoJ in aggressive growth move The Bank of Japan (BOJ) has said it will expand the country’s money supply as it tries to stimulate growth in the world’s thirdlargest economy. The central bank said it would boost its asset purchases, including Japanese government bonds, while pledging to meet a two percent inflation target within two years, aimed at reversing decades of falling prices. The BoJ said it would “enter a new phase of monetary easing both in terms of quantity and quality”. Among its purchases would be exchange-traded funds and longer-term bonds, with the latter aimed at pushing down long-term interest rates to encourage companies and individuals to borrow. Japan’s economy has been battling more than a decade of falling prices. New governor Haruhiko Kuroda had previously said he would do “whatever it takes” to drive growth. “The BOJ will conduct money-market operations so that the monetary base will increase at an annual pace of about 60 trillion yen to 70 trillion yen,” the central bank said in a statement.

Fast food giant McDonald’s says that “global comparable sales” slipped again in April, citing challenging economic conditions. The world’s biggest hamburger chain said that they were down 0.6 percent globally. That included a 0.7 percent increase in the U.S. “McDonald’s is focused on becoming our customers’ favourite place and way to eat and drink by leveraging the strength of our menu variety, unsurpassed value and convenience, and by emphasising outstanding customer service,” said McDonald’s President and Chief Executive Officer Don Thompson. “As we begin the second quarter against the backdrop of a persistently challenging macro environment, the McDonald’s System is aligned around executing our long-term strategies to drive sustained, profitable growth.” In Europe, its biggest market by sales, comparable sales fell 2.4 percent despite positive performance in the UK and Russia. Asia Pacific, Middle East and Africa comparable sales declined 2.9 percent. McDonald’s said it reflected the “impact of avian influenza, primarily in China, and softer results in Japan and Australia”. “Across the region, McDonald’s is striving to improve performance by emphasising unique value platforms, accelerating growth at breakfast and enhancing customer service and convenience,” it said.

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Sport

B u siness

Skills gap hampering business says PwC A lack of key skills is hampering growth and government needs to “prioritise initiatives that help foster a skilled workforce” PricewaterhouseCoopers (PwC) has found in an international survey of business leaders. “Businesses are struggling with a widening mismatch between the skills of their workforce and the skills they need to achieve strong growth. There needs to be a joint approach to addressing the problem, with businesses and governments working together to plug the skills gap,” PwC human resource services director Gerald Seegers said in a statement. According to the survey of more than 1,300 CEOs around the world, 58 percent say a lack of key skills is hampering their growth prospects Fin a n c e

and they see the availability of key skills as the second biggest threat to their business growth, just after the increasing tax burden (63 percent). CEOs in Africa (82 percent), the Middle East (69 percent) and Asia-Pacific (64 percent) are the most concerned about the lack of key skills. The research shows businesses are looking to government to help them plug the skills gap. More than half of CEOs (57 percent) said that creating and encouraging a skilled workforce should be the government’s highest priority for business for the year ahead. The research revealed that mining, energy, and engineering and construction companies report the most chronic shortage of skilled employees.

Vettel wins Bahrain GP Red Bull’s Sebastian Vettel won the Baharain Grand Prix, his second win in four races this year. The defending triple world champion headed Lotus drivers Kimi Raikkonen and Romain Grosjean, who denied Paul di Resta a first career podium in the closing laps. Starting second, Vettel took the lead on lap three and then controlled the 57-laps race as he came home 9.1 seconds clear of nearest rival. “It was a fantastic race,” said Vettel. “I have to give a big, big thank you to the team today it was faultless from start to finish. The pace was phenomenal, the car was great. We took good care of the tyres and it all paid off.” It was the 25-year-old’s 28th career win and it saw him move into sixth on the all-time list of Grand Prix wins taking him past Jackie Stewart.

B u siness

China trade growth accelerates

Airtel sells five percent stake to Qatar Foundation

China’s trade growth accelerated in April, beating analyst expectations, a positive sign for the country’s economic recovery. Exports surged by 14.7 percent compared with a year earlier - up from 10 percent in March. Imports rose by 16.8 percent, up from 14.1 percent. Some analysts however have raised questions about the accuracy of the data. “I have no strong conviction whether the data reflect reality,” said Zhiwei Zhang, chief China economist at Nomura in Hong Kong. China had a bigger-than-expected trade surplus in April of $18.2 billion, after a surprise deficit of $884 million in March.

India’s largest mobile phone operator, Bharti Airtel, has agreed to sell a five percent stake in itself to the Qatar Foundation Endowment (QFE). The deal is worth $1.26 billion. “I am delighted to welcome another high quality long-term institutional investor to our shareholder base,” said Sunil Bharti Mittal, Chairman of Bharti. “This strategic partnership with QFE demonstrates the confidence they have in the Company and our strategy for growth. In addition, this agreement exemplifies further strengthening of the already deep economic and cultural relations between Qatar and India. We look forward to a long and fruitful partnership with QFE.” The deal comes as the Indian telecoms firm looks to strengthen its finances. Rashid Al-Naimi, acting chief executive of the QFE, said that the investment in Bharti was a long-term one. “As a long-term global investor, our shareholding gives us exposure to a high growth sector in key emerging markets. QFE looks forward to supporting Bharti in realising the full potential of this world class business.”

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J a pa n â&#x20AC;&#x2122; s

econom y

Pro inflation polic y: J apan â&#x20AC;&#x2122; s econo m y in reco v er y ? A weaker yen has been good for Japanese exporters but will it be good for the ordinary citizen...? Writer Ian Armitage

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f I N A N C E

ince the spectacular collapse of Japan’s 1980s bubble economy in the 90s the country’s economy has been in stagnation and decline but it is now starting to show signs of recovery. Tokyo stocks have reached five-year highs. Deflation appears to be under control and interest rates, effectively at zero for more than five years, may soon begin to rise. Real estate prices are also rebounding. What’s changed? New Prime Minister Shinzo Abe has pushed policy makers and other officials to take bold steps to revive one of the world’s largest economies – things like temporary fiscal stimulus, monetary easing and structural reform (together they make up a strategy known as “Abenomics”). A sign the push is working came when the yen hit 100 to the dollar for the first time since 2009 in May. It means the yen is worth less than a penny. Normally that would be a bad thing. Not in Japan’s case. The yen has fallen nearly 25 percent against the U.S. dollar since November, when Japan’s cabinet approved a 422.6 billion yen economic stimulus package of subsidies and tax grants designed to boost its economy. Japan’s goal has been to weaken the currency in hopes that a lower yen will help lift it out of a deflationary state. The policies put in place by Mr Abe and Haruhiko Kuroda, chairman of the Bank of Japan, appear to be doing just that. So why is a weak yen appealing? For one it makes Japanese exports more competitive around the world and that’ll help boost exporters’ profits. In fact it already has. Toyota Motor reported that net income in the last 12 months had jumped threefold and Sony produced an annual profit for the first time in five years. Both forecast further profit increases. The weaker yen has also triggered a rally in the country’s stock market and it is expected to be a boon for tourism.

“We’re finally seeing a correction of the excessively strong yen,” Mr Abe said. But perhaps the yen hitting 100 to the dollar says more about the strength in the U.S. economy than it does about Japan’s recovery? “It’s the dollar that’s in demand because economic recovery in America is gathering steam,” Amari Akira, the Japanese economic revitalisation minister, said. The U.S. is now Japan’s biggest export market with recent figures showing it edged ahead of China with U.S.-bound exports jumping 10.4 percent from a year earlier to 11.4 trillion yen. Exports to China, a major export destination due to its status as Japan’s biggest offshore manufacturing base, plunged 9.1 percent to 11.3 trillion yen. Forex.com’s Chris Tedder certainly thinks Japan is more dependent on U.S. growth than China’s economic health. “Hopes of an economic recovery in

The U.S. has regained its crown as the number one export destination for Japanese exports, after losing the title in 2009 on the back of a massive stimulus binge in China. It makes sense that Japan’s exporters would be looking away from China”

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J a pa n ’ s

econom y

Japan may be more dependent on U.S. growth than China’s economic health, at least that’s the picture that emerged from Japanese trade data,” he wrote. “The U.S. has regained its crown as the number one export destination for Japanese exports, after losing the title in 2009 on the back of a massive stimulus binge in China. It makes sense that Japan’s exporters would be looking away from China. Recent tensions over a diplomatic dispute between Beijing and Tokyo over a chain of Islands in the East China Sea have had a significant impact on China-Japan trade relations. “Nonetheless, the U.S. may not hold the top spot indefinably from here, given how close the figures are - Japan’s exports to the U.S. increased around 10 percent to 11.4 trillion yen, just beating 11.3 trillion yen worth of exports to China. Yet, we wouldn’t

Japan’s exports to the U.S. increased around 10 percent to 11.4 trillion yen, just beating 11.3 trillion yen worth of exports to China”

be surprised if Japan’s exporters continue to seek out the U.S. in coming quarters/years as the U.S. recovers from a recession and China eases to more sustainable growth levels. Japan’s deficit was 362 billion yen in the fiscal year ended in March (the smallest since June), with exports increasing a modest 1.1 percent and imports jumping 5.5 percent.” Some U.S. manufacturers aren’t too pleased with Abe’s policies. “The depth of Japanese currency manipulation has reached a new low,” said Matt Blunt, the American Automotive Policy Council’s president in a statement. The weaker yen certainly makes it harder for U.S. exporters to sell products in Japan but how does it affect ordinary Japanese citizens? Well, as the currency weakens, prices of imported goods and raw materials rise quickly too. Items like toilet paper and tissues have jumped by 10-15 percent.

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The key will lie in how much the Japanese companies cashing in on the weaker yen will pass on their bigger profits to consumers, by raising wages or hiring new workers. The government has been publicly pressuring corporate executives to raise pay, with rhetoric suggesting companies needed to “return favorable corporate earnings to their workers,” prompting a string of companies to declare wage increases or extra bonuses in recent months. Mr Abe reassured the public that the trickle-down to consumers from the weaker yen was already starting. “It might take a year or two for everyone’s incomes to grow, but we’ve already seen things start to improve this year,” he said. Higher incomes would drive a much-needed recovery in consumption, bringing about rising prices, profits, investment and even higher incomes.

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S i n g a p o r e

S p o r ts

H u b

Dreams F i eld o f Singapore Sports Hub to open by April 2014

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s p o r t

Construction is well underway for Singapore’s new Sports Hub. In fact, it is expected to open by April 2014, less than a year from now. It is set to become the preeminent sports and leisure venue in Southeast Asia. Writer Ian Armitage

t’s less than 12 months until the Singapore Sports Hub will open. It is believed to be the largest ever sports infrastructure Public-Private Partnership (PPP) and the 35-hectare sports complex is currently under construction in Kallang. The estimated $1.334 billion sports, entertainment and lifestyle Hub consists of a 55,000 seat National Stadium, a 6,000 seat Aquatics and Water Leisure Centre, a 3,000 seat Multi-Purpose Indoor Arena, a Water Sports Centre, a Sports Library and Sports Museum, a 41,000 square metre retail mall, and the existing 12,000 seat Singapore Indoor Stadium. Arup is lead designer for a 55,000-seat stadium, the heart of the new development. “We are excited to be part of the design team for this unique development that integrates sport, leisure and entertainment facilities located within Singapore’s city centre” says André Lovatt, Arup’s Singapore office leader. “The Sports Hub will put Singapore firmly on the map as a world leader in sports infrastructure and we believe it is a model that other countries will seek to follow.” So who’s running the show? Well it is a PPP project, we mentioned that before, where the Sports Hub consortium has a 25-year contract with the Singapore Sports Council, the Government agency responsible for sports promotion in Singapore, to design, build, finance and operate the Hub. That consortium includes four equity partners: InfraRed Capital Partners, UGL Services Ltd, Global Spectrum Asia (with Pico Pte Ltd as a partner) and construction firm Dragages Singapore Pte Ltd, part of Bouygues Construction, one of the foremost construction groups in the world. Dragages has been active in Asia for more than a century and has developed a leading role in Singapore’s construction industry. It is heading construction works on the massive project.

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S i n g a p o r e

S p o r ts

H u b

“The Sports Hub will offer world-class facilities for sports, events, concerts, exhibitions and international trade shows,” Bouygues Construction says on its website. “Our sister company Dragages Singapore, part of Bouygues Batiment International, will design and construct the complex. The Hub, which is due to be completed in 2014, is located on a prime 35-hectare seafront site in the centre of Singapore city, with close proximity to all major transport links. Stimulating the development of sports activities locally, the centre will also enhance Singapore’s appeal and capabilities on a global level. Central to the Sports Hub is the 55,000 seat New National Stadium, which features a retractable roof measuring 300 metres in diameter. To ensure spectators are comfortable, the stadium’s cooling system must provide relief from Singapore’s stifling heat. A unique and innovative air-conditioning system is being developed for the stadium, which will circulate cool air under spectator seating. Other Hub facilities will include: a 6,000 seat indoor Aquatic Centre and a Water Sports Centre for the general public; a 3,000 seat Multi-Purpose indoor Arena that will be fully scalable; an exhibition centre; a sports museum; office space for sporting associations; 41,000 square metres of commercial space and food and beverage outlets. The development will also comprise a kilometre-long Sports Promenade and community facilities, such as

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Sports Hub will be Southeast Asia’s preeminent sports and leisure venue

The Sports Hub will reinforce Singapore’s position as a major sports destination

fitness corners, running/cycling track, beach volleyball, basketball hard courts, lawn bowls, skate part, leisure water park, boating, climbing wall, and more. With several interconnected buildings to be constructed in a small area, the complex will present significant technological challenges. “The construction process will offer many opportunities to make a positive social and economic impact on the city, with 2,500 people expected to work on the project, and 20 or more cranes to be used,” it adds. For those of you that don’t know, the new Sports Hub is on the site of the old National Stadium, and, to retain some of its heritage, many of the materials from the demolition are being recycled into the new build. The old National Stadium was built in 1973 and contains many happy memories of a time when Singapore competed in the Malaysia Cup and other sporting events like the interschool track and field championships. The National Stadium also hosted 18 National Day Parades. The Sports Hub will reinforce Singapore’s position as a major international sports destination that is already attracting world-class sporting events, such as the recently won WTA Championships, which will take place in 2014. “With an elegant 312 metre dome Singapore’s new stadium will be the

s p o r t

With an elegant 312 metre dome Singapore’s new stadium will be the largest free-spanning dome in the world. It will also be the first naturally ventilated stadium to have an integrated cooling system, with energyefficient technology delivering cool air to every single seat. And up above, the retractable roof will provide shade and shelter from the tropical weather”

The new Hub is on the site of the old National Stadium

largest free-spanning dome in the world,” says Arup. “It will also be the first naturally ventilated stadium to have an integrated cooling system, with energy-efficient technology delivering cool air to every single seat. And up above, the retractable roof will provide shade and shelter from the tropical weather. “The stadium can host football, rugby, athletics and cricket in one venue, with a fully moveable lower tier of seating providing the best views for each sport. “The flagship National Stadium and Sports Hub are intended as an anchor for a nationwide plan for a thriving and sustainable sports ecosystem across Singapore,” it adds. “Alongside the stadium, we’ve also designed an Aquatic Centre and Multi-Purpose Indoor Arena. As well as being as training bases for elite athletes, these facilities will be open to the local community.”

The first phase of construction for the stadium, completing all piling and foundation work, finished in September 2011, allowing the above ground construction work to begin. Speaking to Southeast Asia Construction Magazine in July-August 2012, Frederic Perez, construction director with Dragages Singapore, said the most challenging aspect of this job is its density. “Even though this project will spread out over a very wide area, nearly every part of that area will be occupied by some kind of structure,” he said. The schedule for this massive project is very tight. Work only started in September 2011 and the construction phase is just 30 months. It is on target. Look out for a follow up piece in our next issue. To learn more visit www.sportshub.com.sg.

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L i a n

Ben g

const r u ct i on

Dare to

dream It pays to dream big. And dream big is what Lian Beng has done. Within the first four months of 2013, it has secured six construction projects worth about S$750 million, taking its orderbook to record highs. Construction Director Jeffrey Teo tells us more. Writer Ian Armitage Project Manager James Mitchell

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n 1978, Ong Pang Aik joined his father to help run the family business. At the time, the company, Lian Beng, was a civil engineering sub-contractor. Mr Ong wanted more. He wanted to expand. It was his dream and a lot can be said for the power of the dream â&#x20AC;&#x201C; he helped grow Lian Beng from a subcontractor that took on small-scale civil engineering a to a Building and Construction Authority Grade A1 main contractor, and subsequently

const r u ct i on

to an SGX-listed company with close to $250 million in market capitalisation and an annual turnover of close to $450 million. Today Lian Beng’s wholly-owned subsidiary, Lian Beng Construction, is the chief revenue driver. While it has gone into property development and continues to grow along the value chain into other construction support services such as readymixed concrete, construction equipment and machinery leasing and engineering works, they are a secondary focus.

“While we have ventured into property development and other fields, construction remains our group’s main business, forming more than 75 percent of our turnover,” Mr Ong said in a recent interview. Notable on-going construction projects include Thomson Grand, developed by the Cheung Kong Group from Hong Kong, Waterfront Isles, developed by Far East Organization, and Hedges Park, developed by Hong Leong Group. Lian Beng is also co-developing a few residential, commercial and

industrial projects with its joint venture partners. A few examples are M-Space and Mandai Dormitory at Mandai Industrial Estate, Spottiswoode Suites off Neil Road, a hotel development near Bugis, Lincoln Suites off Newton Road and mixed development, The Midtown at Hougang. In many of these property development projects Lian Beng also undertakes the construction. We recently had the privilege of talking with Lian Beng’s Construction Director Jeffrey Teo, who answered our questions in this unique Q&A.

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Tell us more about Lian Bengâ&#x20AC;&#x2122;s history. What defines you as a business? And what are your key strengths? Established in 1973, Lian Beng Group Ltd is one of Singaporeâ&#x20AC;&#x2122;s major home-grown building construction groups and one of the few which has integrated civil engineering and construction support service capabilities. We are principally involved in the construction of residential, industrial and commercial projects, and civil engineering projects as a main contractor, and are a Building and Construction Authority (BCA) Grade A1 contractor. That means we can tender for public sector building projects of unlimited contract value. We are also engaged in other construction related activities. These include the provision scaffolding and engineering services, the supply of ready-mix concrete, leasing of equipment and machinery, reinforcement bar fabrication and the training of foreign construction labour. We also engage in property development, mostly through joint-ventures. Lian Beng Group Ltd was listed on the Main Board of the Singapore Exchange (SGX) in 1999 and our key strength is our vertically integrated business model. How is the business performing? The last 12 months have been exciting for Lian Beng. We made very good progress in our business, in the following ways: In construction, we secured several big projects: Skies Miltonia in February 2013, Bartley Ridge in March, and two industrial projects at Sunview Road and Tampines Crescent in early April and Oxley Tower @ Robinson, a hotel at 122 Middle Road and Goodwood Residence at the end of April. That is great news. Within the first four months of 2013 we have secured six construction projects amounting to about S$750 million, strengthening our orderbook to a record high of S$1.2 billion. In property development, our 55 percent-owned industrial development at Mandai (M-Space) is fully sold. We have also just launched our 50 percentowned residential development at Spottiswoode Park Road (Spottiswoode Suites) and another large scale mixed-development project at Hougang (The Midtown).

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Waterfront Key - Main building works to the proposed condominium development at Bedok Reservoir Road

FORMWORK HIRE SOLUTION Formwork Hire (S.E.A.) Pte Ltd is an established system formwork company that is totally committed to give a complete total formwork solution ranging from the design, supply and commissioning of the entire formwork system. Our system formwork can be used for foundations, columns and walls - everything from small to large scale. Similarly hydraulic self climbing formwork can be provided where considered necessary. For slabs we can offer our heavy duty frames and tableforms using system elements that will increase the construction productivity. For tunnels, towers, bridges with special shapes can all be combined with modified systems and special elements. Over the years, we have accumulated abundant experiences in high rise buildings, civil formwork, bridge-road formwork, water reclamation plant, biological plant, tunnels and warehouse projects. Our constant aim is to provide a system formwork based on speed, simplicity, safety and cost effectiveness. With our enduring zeal, all new enquiries and projects entrusted to us by our clients are therefore our reward for the tireless efforts and striving for the best system formwork we can offer. Tel (65) 6257 9963 Email enquiries@formwork.com.sg

www.formwork.com.sg

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THAM & WONG LLP Tham & Wong LLP offers full civil & structural consultancy and Accredited Checker services to various types of developments We have expanded and extended our consultancy services to Asia with projects undertaken in Vietnam, Thailand, Laos, Myanmar and Malaysia Our company is committed to provide the best engineering solutions to all our clients Tel 65 6291 6292 Email hr@tw-asia.com

www.tw-asia.com

Residences at Emerald Hill Proposed residential development at 119 Emerald Hill Road

Have there been any challenges? As with anything there were challenges along the way. The foreign levy has increased and is expected to increase further. There will also be tightening of foreign labour. The construction cost is therefore likely to increase. We need to find ways to continue to improve our productivity. How would you sum up the current state of the industry? Are there lots of opportunities for the company? There are. The construction industry is brimming with opportunities with the increasing population and hence the improvement and expansion of infrastructure, and the increase in housing demand and other commercial and industrial property demand. As construction demand increases, the

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cost of construction support services is likely to increase too. We need to seek new ways to improve our productivity to address this challenge. What does the Singapore market demand in a developer? How do you go about meeting that challenge? We believe that generally the market demands a developer to provide comfortable homes at affordable prices and at an acceptable level of quality. The market also demands that the developer complete the project on time. To meet this challenge the developer must be prudent in its tender of the land, in ensuring the proper and on-time completion of the project, and in sizing the market well to sell the property at the acceptable price level.

You mentioned the tightening of foreign labour earlier and the government is continuing to tighten quotas. How is that affecting you? What are the ramifications? The construction cost is expected to be higher. To ensure no delay in our projects we need to improve our productivity. We are, to some extent, insulated from this issue as we have our own workers. We train our own workers, we have an overseas training centre to prepare our workers, and we have also our construction support resources. However, Lian Beng is always on a lookout for new methods, new technologies, new processes or new ways to reduce the reliance on manpower and increase productivity through these new innovative

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Marina Bay, Singapore Credit: Timothy Hursley® The Ritz-Carlton Residences, Singapore, Cairnhill Exterior of building

discoveries. We are expecting the construction cost to be brought to its equilibrium after the initial phases running in the new productivity measures. You have two major projects due for completion this year Spottiswoode Residences and the Scala at Serangoon Avenue 3. How are they progressing? Both projects are expected to complete towards the end of 2013. Tell me a bit more about the company’s working culture and values? What’s important to you? Our core values are: 1. Teamwork - A commitment to common goals based on open and honest communication while showing concern and support for each other. 2. Integrity - Do the right thing…. always. We do what is right, not what is easiest. We are true to ourselves and others. We are transparent, honest, and consistent. We take pride in our work and act with professionalism. 3. Innovation - Challenge existing practices…. Strive to find ways to continuously improve. 4. Excellence – We challenge ourselves to execute flawlessly and to consistently deliver the highest quality of service to our clients. We seek the best talent and promote personal and professional development. 5. Commitment – We are passionate about solving complex issues and are intensely focused on serving our clients and helping them achieve their business objectives. We do what we say we are going to do: we create value.

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Well-established interior builder that specializes in customized fitting out of high-end commercial, hospitality, healthcare and residential properties in Singapore and the Asia-Pacific.

DHdeco pte ltd

1 Sungei Kadut Street 4, Singapore 729030 T: +65 6472 6600 F: +65 6365 7010 E: support@dhdeco.com Website : www.dhdeco.com

SINGAPORE AUSTRALIA BRUNEI CHINA MALAYSIA SRI LANKA THAILAND VIETNAM

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Lian Beng is no stranger to awards and youâ&#x20AC;&#x2122;ve won accolades like the BCA skilled Builders Competition (you were winners for the architectural finishing category and took home the productivity trophy). Tell me more about that? Are you proud to have won? We are honoured to have won the award. There are numerous construction companies and there are also many great completed projects. It is an honour to win and winning the award is a testimony of our strength and capability. On 16 May 2013 Lian Beng Group - through its subsidiary Millennium International Builders Pte Ltd - will be receiving the BCA Construction Excellence Award for the Ritz Carlton Residences in Singapore. The award demonstrates the strength of its overall management of the project, possessing the required technical capability and innovations for the construction, and achieving a very high quality standard of the completed project. You are also fully engaged with the Green and Gracious Builder Scheme. Why is that important? The BCA Green and Gracious Builder Scheme was established to promote sustainable environmental protection and gracious practices in builders during the construction phase of projects. To be socially responsible, a builder should embrace sustainable environmental protection and gracious practices and engage this scheme.

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The OLA Residences at Mountbatten Road Marina Bay Sands from Gardens by the Bay Sunset

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CSC HOLDINGS LIMITED Your Partner in Ground Engineering

Your One-Stop Venue

No.2 Tanjong Penjuru Crescent Singapore 608968 Tel: +65 6367 0933 Fax: +65 6367 0911 Email: corp@cschl.com.sg www.cschl.com.sg

for home & cooking appliances kitchen & bathroom fixtures and water heaters Exclusive Distributors of:

CASA HOLDINGS LIMITED 15 Kian Teck Crescent, Singapore 628884 Tel: +65 6268-0066 Fax: +65 6266-8069 www.casaholdings.com.sg

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We aim to achieve good sales in our development projects, and to continue to seek opportunities to co-develop projects”

Marina Bay Sands View from The Sail

Spottiswoode Suites, an artists impression

With eyes on the future, what’s in store for Lian Beng? We aim to secure more construction projects, strengthen our construction order book further and increase our construction revenue. On our property development business, we aim to achieve good sales in our development projects, and to continue to seek opportunities to codevelop projects with suitable partners. To expand our business we shall maintain our strategy of actively but prudently pitching for more construction projects to maintain our margins and participating in property development through joint ventures. There are opportunities overseas but we need to tread carefully. Are you optimistic about the local construction sector? We are. There are still a lot of opportunities within Singapore with the increasing population. Along with the expected population growth, there is a growing demand for housing, commercial and industrial, as well as the improvement and expansion of infrastructure. If you met a Genie who offered to have all of Lian Beng’s dreams come true, in order of priority, what would they be? In business there are no shortcuts. We need to work for our successes. We need to lay our own firm foundation so that we can grow bigger and stronger.

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What is the secret to Lian Bengâ&#x20AC;&#x2122;s success? There is no secret in our success; we just work hard and we embrace our corporate culture dearly. We believe we are successful mainly through our teamwork and diligence. We work hard daily to fulfil our mission of providing the best quality for services and products to all our customers so that we can achieve our vision to be a leading building construction player in Singapore. We also believe in continuously improving our capabilities, our productivity and expand our service offerings so that we remain competitive. No business can be successful without its human resource. We welcome those who share the same values with us, to join us, and together we fulfil our dreams. We welcome like-minded partners to form JVs to explore business opportunities in Singapore or overseas so that we grow bigger and stronger together. Lian Beng has not only survived tough times during economic downturns and recessions but has emerged stronger. It continues to grow along the value chain and we look forward to bringing you more from them in the near future. To learn more about Lian Beng visit www.lianbeng.com.sg.

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Invest in S E A sia Asia Outlook talks to Zach Wilson, the Managing Director of Alfa Tech VestAsia, and learns more about the companyâ&#x20AC;&#x2122;s growth in Southeast Asia. Writer Ian Armitage Project Manager James Mitchell

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hen Zach Wilson set about establishing Alfa Tech VestAsia he was regularly told he was “wasting his time” and “didn’t stand a chance”. For a while it looked as though the critics were right. Despite successfully entering the market in 2007 - thanks to longtime partner Ultratech who needed help in setting up its own operations in Singapore - it was several months before the next contract was signed. “Moving to a new market is difficult,” says Wilson, Managing Director of Singapore-based Alfa Tech VestAsia (ATVA). “It is even more difficult when that market is a mature market. We built this business from scratch and carving out a niche wasn’t easy. After we finished the Ultratech job we didn’t have any concrete opportunities. Eventually we won several prospects and we haven’t looked back.” ATVA is today renowned for an almost unrelenting focus on customer service and delivery. Wilson says, “It is like a restaurant, if you go somewhere and have bad service and terrible food, which is late and cold, you don’t go back. And you certainly don’t tip. We want to make sure people come back and tip!” The result is a brand that even its biggest competitors envy. “There is great potential here,” Wilson says. “Despite the global downturn Asia-Pacific economies continue to grow and as international businesses - especially from Europe and the U.S. - look for expansion, the region presents some of the best opportunities for growth. “It is this that has driven us forward and it will continue to – Singapore being the ideal base for many international firms.” According to Wilson, those looking to expand in the Asia-Pacific need a trusted, tested partner with expertise to guide them. ATVA provides that.

Despite the global downturn AsiaPacific economies continue to grow and as international businesses - especially from Europe and the U.S. - look for expansion, the region presents some of the best opportunities for growth”

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We recently signed a memorandum of understanding with 3M to develop Open Bath Immersion (OBI) cooling technology for the Data Centre Industry in Singapore”

“This is precisely why we were incorporated in Singapore - to assist clients’ expansion needs as well as serve new clients requiring high quality project management services in the Asia-Pacific region.” ATVA provides end-to-end design, advisory and turnkey project management services and aims to “de-risk clients’ capital expansion experience”. In Wilson’s words it, “bridges the technological, quality and customer service gaps between industrial best practices and the ground realities faced” by clients. “We have the experience and we serve customers who are looking at Singapore for strategic relocation,” he says. Mr Wilson has over 10 years of experience in engineering, construction and real estate development and developed over two million square feet of mixed-use real estate projects in San Francisco prior to setting up the ATVA office in Singapore. “We’ve hallmarked our business on customer service,” he says. Anyone dealing with ATVA quickly learns that the business is built on this principle. It cares very deeply about its customers and wants all those that come to Singapore and Southeast Asia to succeed. It has the confidence of multinationals like Ultratech, Silecs and Ichor Systems.

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ENGINEERING EXCELLENCE DELIVERED GLOBALLY Providing end-to-end design, advisory and at-risk turnkey project delivery services

Alfa Tech VestAsia Pte Ltd 75 Bukit Timah Road #06-10 Boon Siew Building Singapore 229833

Tel: +65 6333 7737 Fax: +65 6338 7737 Email: zach.wilson@atce.com Website: www.atce.com.sg

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The devil is in the detail, stresses Wilson. “In a climate of increasing specialisation for construction businesses worldwide, we’ve got what we and the market believes to be a refreshing range and scope of expertise, aided by this close link with projects and clients. We offer a value proposition and that is attractive. With us you aren’t just dealing with a project manager, an engineer or developer – you get it all. We put ourselves at the heart of a project and we jump right in. There are obvious benefits to a company which can pledge what we do; that being responsibility for an entire project.” Having established itself in the market, ATVA is looking to the future. Wilson, a specialist in clean technology, renewable energy, energy efficiency and hi-tech challenges projects, is eyeing growth in Southeast Asia’s data centre market. “Looking back on our roots in San Jose, we delivered some of the most landmark data centres in the world,” he says. “We want to do that same thing in Singapore and to this end we recently signed a memorandum of understanding with 3M to develop Open Bath Immersion (OBI) cooling technology for the Data Centre Industry in Singapore.” 3M OBI technology makes use of 3M Novec Engineered Fluids to achieve cooling for high performance computing at unrivalled energy efficiency. In a press release 3M said it was “excited about our partnership with Alfa Tech and we look forward to work with them.” “Alfa Tech has had the great privilege of working with some of the industry’s most advanced data centre users in the world including Facebook, Symantec, VM Ware, Adobe and many more,” says Wilson. “We are honoured to join hands with

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In a climate of increasing specialisation for construction businesses worldwide, we’ve got what we and the market believes to be a refreshing range and scope of expertise, aided by this close link with projects and clients. We offer a value proposition and that is attractive”

Signing the MoU with 3M

3M, one of the most advanced and respected manufacturers in the world. We believe that through the proper implementation of Open Bath Immersion cooling technology using 3MTM Novec Engineered Fluids, we can satisfy the data appetite in a sustainable and responsible way with a spirit of environmental stewardship.” Southeast Asia will continue to attract investment and the future is bright. ATVA believes the region will continue to be a hub of investment and that it has “all the fundamentals” for future success. “We want to get growth across the board,” Wilson concludes. “We want to be smarter and be able to handle the permitting and political side of things and be able to handle the goods on the ground. We’re expanding in multiple ways, and this growth is centered on giving our customers better solutions faster and more cost effectively.” Alfa Tech VestAsia is a company on the rise. To learn more visit www.atce.com.sg.

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C ontin u ed Asia Outlook talks to Sven Hergemoeller, deugro’s Regional Vice President for Southeast Asia. Writer Ian Armitage Project Manager James Mitchell

ounded in Germany in 1924, the deugro Group is one of the world’s leading project freight forwarding companies and has completed complicated turnkey logistics contracts on almost every continent. deugro is historically known for project logistics, specialising in turnkey projects and complicated cargo moves to and from major industrial sectors.

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It is also active in international freight services such as sea freight and airfreight. “We are a global leader in our niche of project logistics and freight forwarding,” says Sven Hergemoeller, deugro’s Regional Vice President for Southeast Asia. “deugro is a truly global presence but significantly we remain a privately held, family organisation in the third generation. We are highly specialised offering a diversified portfolio of services to a variety of clients located in every

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corner of the globe. Our company slogan is “Minds over Matter” and our strength and competitive advantage lies in our people – they are our most valuable resource. This, and close working relationships with our clients, distinguishes us from our competitors and provides a platform for future growth, flexibility and superior service.” He says deugro takes “the best minds to make the right moves.” “Our philosophy is to get the best people in the industry. Our people really do make the difference.”

deugro is a truly global presence but significantly we remain a privately held, family organisation in the third generation”

deugro has enjoyed substantial growth over the last year and it aims to continue to expand its core business in existing and new markets. “The last 12 months were actually fantastic for us,” says Hergemoeller. “Unconsolidated, we exceeded our sales as budgeted by 20 percent, which is substantial, and our net profit before tax was also exceeded. The group turnover in 2012 was in excess of 600 million euros and we employ today about 1,000 people in more than 60 strategically located global offices. We execute

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ALE ALE is a complete solution provider for the heavylift and transportation industry. With innovation at our core we are committed to investing in technology, systems and equipment to ensure we remain at the forefront of the industry. Crucially, we invest as much in our people as we do in our equipment, so we have a world-class management structure in place to support our technical potential. That means that as well as having the best project managers and engineers available today, we’ll also have the best tomorrow. Full planning and project management services are available as a ‘one stop shop’ and we can integrate multiple operations and execute them with precision in limited timeframes. Founded in 1983, we have grown steadily through the building of long-term relationships with key customers and the acquisition of successful specialist companies which have augmented our capabilities. With operating centres in Europe, North America, South America, Africa, Australia, the Middle East and the Far East, we are a truly global company that organisations from across the world turn to to push the boundaries of what’s possible with their high-profile projects. Email info@ale-heavylift.com

www.ale-heavylift.com

mega projects for oil and gas, power generation and renewables as well as mining and a new business vertical: pharmaceuticals. Pharmaceuticals is an important market for us in Singapore as the local government wants to attract more science and technology industries. The group remains strong and we have substantial resources to operate effectively and expand further. “We are very active in Southeast Asia, the Middle East, Russia and North/South America and have been involved in some of the largest projects ever constructed in Columbia, South Africa, New Caledonia and Papua New Guinea, which are still ongoing. The challenge there is to make it all work and to the satisfaction of the client, of course.” According to Hergemoeller, around the world, decision making is becoming decentralised. Clients are making local decisions and such offices are largely autonomous. “That is a challenge for us. In the past the headquarters of a global client were always in charge but these days are over and today their regional and local set-ups act very independently.” deugro has achieved preferred freight forwarder status with numerous clients around the world and has invested heavily in QHSES, compliance, IT and transport engineering, amongst other support functions.

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“It is important to invest in such things as clients require an ever higher level of service and standards of compliance, business ethics, quality, health safety and environment at the lowest possible cost or even for “free”, which seems contradictory,” says Hergemoeller. “For compliance and QHSES, it’s not just phrases or buzzwords – these are things that must be lived by and ingrained into the company culture and management commitments, rules, regulations and processes. It must be tangible and measurable and with a permanent focus to improve the systems further. “The challenge is to manage these added costs, which is easier for a family enterprise like deugro than it is for an industry giant.” This represents an opportunity for deugro. “The big forwarders and logistics provider are allrounders with no strategic long term approach to the project logistics and project markets. There is always a lot of hire and fire going on and this is not good. Smaller specialised project forwarders and logistics providers still maintain a good quality but they often cannot comply entirely with QHSEs, compliance, IT

WORLDWIDE HEAVY TRANSPORTATION AND LIFTING

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Orient Project Shipping (S) Pte Ltd

The challenge is to manage these added costs, which is easier for a family enterprise like deugro than it is for an industry giant”

Orient Shipping has been established in Singapore since 1990 though the name is much newer as Company was originally trading as Coli Shipping prior to a rebrand at the end 2011. Whilst the name may have changed the team remains largely the same and most certainly with the same commitment to quality, reliability and accessibility. We are the local project shipping expert backed by a wealth of knowledge covering Asia, Australia and beyond. We specialise in offering project and heavy lift ship broking and associated services and offer commercial and technical advice, pre-emptive operational support, and have strong regional operating knowledge. We’re also a ship owner’s agent, commercially representing Dutch heavy lift ship owner Biglift in ASEAN and the multipurpose fleet of Hamburg ship owner Peter Doehle in ASEAN/AustraliaNew Zealand. On top of that, we’re an experienced broker for ocean transport of pre-assembled modules by self-propelled deck ship as well as float-on/float-off operations both by submersible vessel and barge. Orient Project Shipping is strategically located to be your service provider of heavy lift shipping expertise. We are immersed in the economics of development. Wherever infrastructural projects are undertaken there will be a demand for specialised shipping services which can accommodate the large or heavy components that such capital investment involves.

and many other requirements imposed by the clients. Therefore we see great opportunities to grow deugro’s business Sven Hergemoeller, deugro’s Regional and stay strong in the market. Vice President for “We will remain focused, and we Southeast Asia will also strategically build our own network. We comply with the clients high level requirements and therefore we are and will continue to be successful in the future. “In Asia you need extensive market knowledge and clients want 24/7 availability from our people and they demand very competitive pricing at highest level of service. In light of project related business in this part of the world, they require a solid and qualified transport engineering support. We employ transport engineers in Singapore who work in accordance with our corporate engineering standards and globally we have a number of competent support engineering centres. They are located in Germany (HQ), Russia, North America, India, Japan, Singapore and Australia.”

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Tel +65 6227 2026 Email shipping@orientproject.sg

www.orientproject.sg

ORIENT PROJECT SHIPPING

A world of difference...

+65 6227 2026 | shipping@orientproject.sg | www.orientproject.sg

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SAL Heavy Lift SAL - 16 specialized heavy lift vessels upto 2,000ts lift cap Engineered worldwide ocean transport The heavy lift reference point Tel +65 6884 6773 Email singapore@sal-heavylift.com.sg

www.sal-heavylift.com

Modules. New Caledonia

Hergemoeller says that a “strong focus” will remain on improving services using technology and training in the region, while managing costs. “In terms of expansion, it is our policy not to reveal these plans until they have been put into place and then it is published on our website. However, we will further invest into transport equipment,” he explains. “These are very special and top of the line trailers to carry wind turbines. These trailers are located in China and South Africa. Africa is a target market for deugro, in general; we will grow more in this challenging market.” Many are eyeing Myanmar as an attractive destination. “With regards to Myanmar/Burma, and having said the above, I will comment that I was recently in the country with a colleague – a

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In Asia you need extensive market knowledge and clients want 24/7 availability from our people and they demand very competitive pricing at highest level of service. In light of project related business in this part of the world, they require a solid and qualified transport engineering support. We employ transport engineers in Singapore who work in accordance with our corporate engineering standards and globally we have a number of competent support engineering centres”

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MV “LONE” LOADING SHIPLOADER OF 1,100 MTONS, 47 M HIGH

WE INNOVATE SOLUTIONS ISM CERTIFIED ISO 9001 ISO 14001 OHSAS 18001

ENVIRONMENTAL PASSPORT

SAL Heavy Lift Singapore Pte. Ltd. www.sal-heavylift.com

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Rickmers-Linie Rickmers-Linie is the leading specialist in the global transportation of breakbulk, heavylift and project cargoes As reliable partners to our clients we offer tailormade, innovative and efficient transportation solutions from the factory up to the construction site The exceptionally high quality and reliability of our transportation services create lasting values for our customers, employees and shareholders We strive to meet and exceed the expectations and requirements of our customers We act swiftly and flexibly, thereby always focusing on solutions to fit our customers’ needs We provide our customers with highly competent and reliable transportation services, aimed at developing longlasting and honest partnerships

www.rickmers-linie.com

We will also grow more in Indonesia. We have been a long time in this country and are currently beefing up our structure. We employ senior foreign talent to support our local operations and to further coach and guide. Indonesia is with no doubt a true emerging market”

senior member of our management team – and we have employed a new country head for Myanmar and are currently busy to get our company registered. We will focus on construction materials, plant and equipment with an eye on Oil and Gas as the country is rich in natural resources. “We will also grow more in Indonesia. We have been a long time in this country and are currently beefing up our structure. We employ senior foreign talent to support our local operations and to further coach and guide. Indonesia is with no doubt a true emerging market. “China too is a growth market and we have just recently opened a new office in ChongQing. We now operate with five offices, located in Beijing, Shanghai, Qingdao, Shenzhen and now ChongQing.”

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This is an extremely exciting time for deugro and Hergemoeller is sure that has a positive effect on staff. “If I look back since I began with deugro, we have had a very successful decade. Part of this was also in Asia and experienced by myself - and who would not want to be part of a group that continues to improve its products and has been growing in its field. “It feeds back to our “can do” attitude as expressed by the “Minds over Matter” motto: We have the best minds and people in the business and this makes the deugro difference. Also we benefit from being a family business. We of course have a wellestablished hierarchy, but with access to the CEO and owner, sometimes you can quickly resolve matters that would probably take days and months in other organisations and this give us a competitive advantage.

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Westbound Round-The-World Service

Bem-vindo a bordo, América do Sul! Welcome on board, South America! Our new Westbound Round-The-World Service connects areas of economic growth in Asia, South America and North America. Taking it seriously we have just introduced the third vessel into this service, with more vessels to come. Watch out for our vessels and departures, not only in South America! More information and schedules on www.rickmers-linie.com

The best way to move your cargo

“Our aim going forward is to keep the best minds and not lose qualified people to the competition, while hiring the right human resources as we expand. We also have a desire to be involved in projects sooner to be able to have the time to properly prepare and research the best and cost effective transport solutions, also involving our transport engineering and risk management at a very early stage. Of course, we want more business. There is no magic formula and we will, as always, remain focused and determined. “What’s our secret? That’s a simple answer: people, people, people. Our loyal people who work for the company.” deugro (Singapore) Pte. Ltd. was recently awarded a turnkey logistics and freight forwarding contract for a neodymium-based performance butadiene rubber plant in Singapore. Once completed in 2015 the plant on Jurong Island will be the largest of its kind in the world and will serve the growing market for “Green Tires”, especially in Asia. “Major equipment will be coming from Germany and India,” says Hergemoeller. The new award is a follow up project of a successful completed job executed in 2012. “We are excited by growth prospects in the region and around the world,” Hergemoeller concludes. To learn more visit www.deugro.com.

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Bibby Ship Management opens two

new offices Liverpool-based Bibby Ship Management recently announced the opening of two new offices in Singapore and India, bringing the total number of global locations to six. Writer Ian Armitage Project Manager James Mitchell

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K-based Bibby Ship Management Ltd, part of the Bibby Line Group, provides “a quality assured comprehensive technical management service to the International Marine Industry” its website says. The firm can trace its roots back to more than 200 years. “In a highly competitive environment a dedication to quality brings economic advantages,” its website says, adding, “Our adherence to the Quality Management System means that we prioritise the long term interests of our clients. This means acting with foresight and integrity, especially in our primary role as providers of a personalised Ship Management Service. These principles have brought success to several sectors within the Marine Industry, namely but not limited to: Oil, Chemical and Gas Tanker Management; General Cargo ships; Ro-Ro Vessels; Ferries; Cable Layers; Offshore Vessels; Floating Production Storage and Offloading; Floating Storage Unit; Jack Up Rigs; and Floating Accommodation vessels.” In early 2013 Bibby Ship Management was “delighted to announce” the opening of two new offices in “key strategic locations across the globe” – Singapore and India.

The opening of those new locations brought the total number of global Bibby Ship Management locations to six, ensuring the company is “ideally placed to service the needs of its customers worldwide”, it said in a press release. Bibby Ship Management’s new office in India is situated in Mumbai. “This move recognises the importance of India as a key training centre for seafarers, particularly in the offshore sector,” said Prakash Agarwal, Managing Director, Bibby Ship Management (India) Ltd. “India has earned a reputation as a supplier of high quality seafarers to many of the vessels managed by Bibby Ship Management. Our new Mumbai office, in addition to our locations in New Delhi, Chennai, Kolkota and Cochin, will ensure that we are best placed to build upon that reputation.” Bibby Ship Management (Singapore) Pvt Limited has a staff of 11 and is headed by Managing Director Martin Kent and Arvind Mohan, Commercial Director for Asia.

Bibby provides a personalised ship management service

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Bibby Ship Management ensures high levels of service

Southeast Asia is the ideal location for Bibby Ship Management to base it’s future expansion

The award of this contract reflects the benefit of our investment in Bibby Ship Management’s systems and people to create a high quality ship management business with great safety awareness which can deliver real value to our clients”

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“Singapore is one of the largest shipping hubs in the world,” said Kent. “With over 5,000 maritime related companies registered here and connections to more than 600 ports in over 120 countries; including Indonesia, Malaysia and China, it offers an ideal location for Bibby Ship Management to base its future expansion ambitions.” According to the release, “Bibby Line Group recently brought its heritage and expertise to the ship management sector with the launch into the wider market of Bibby Ship Management.” The company, “sitting within the vast Bibby Group, is able to draw on its long history within the shipping sector as well as other industries, to provide effective business solutions to meet the needs of modern ship owners”, it said. Separately, Bibby Ship Management recently announced a £100 million five year deal with oil giant BP which will see it manage four regional support vessels (RSV) and two platform supply vessels (PSV) in the North Sea for BP Exploration Operating Company. “This award is a key component of BP’s long term marine strategy and we look forward to working with Bibby Ship Management to ensure high levels of service

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to our offshore operations,” Mark Hardie, BP’s UK logistics infrastructure manager, said. Sir Michael Bibby, managing director of Bibby Line Group, added: “We are absolutely delighted to work with BP in providing full technical management and logistics services for these vessels in the UK North Sea. “The award of this contract reflects the benefit of our investment in Bibby Ship Management’s systems and people to create a high quality ship management business with great safety awareness which can deliver real value to our clients.” Bibby Ship Management has a managed vessel portfolio that combines a Bibby-owned fleet with strong third party clients like BP. In addition, it is able to supply crew and crew management services and the company currently supplies crew to more than 200 vessels and is able to offer a wide range of additional services including training, accountancy and salary services. Ed Rimmer, chief executive of Bibby Ship Management, said: “Bibby Ship Management is committed to offering the highest levels of service to its clients. Working with a company the size and profile of BP underlines Bibby’s reputation in the market place.” To learn more about Bibby Ship Management visit www.bibbyshipmanagement.com.

Marine Sales & Service

Agent for

Tel: 65 6366 6838 Fax: 65 6366 6830 Email: sales@incotrading.com.sg Website: www.incotrading.com.sg

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