austral asia
issue 07 | APRIL 2012 | www.AUSTRALASIAoutlook.coM
Jewel
Residential developer Crown International’s joint-CEO Iwan Sunito talks to Australasia Outlook
Crown in the
also this issue
Pilz Australia
AFL
Nitro Drilling
Old Cats, any new tricks?
AMMA
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Editorial Editor Ian Armitage
Writers Colin Chinery Jane McCallion Tom Sturrock John Vannisselroy Contributors Romilly Madew Derek Lark Reg Howard-Smith
Business
Advertising Sales Nicholas Davies Editorial Researchers Luke Murray Maxime Dupois Brandon Bloch Sales administrators Katherine Ellis Daniel George
Accounts
Financial controller Suzanne Welsh
Production & Design
Magazine design – Optic Juice Production manager–Jon Cooke Images: Getty News: NZPA, AAP, SAPA
digital & IT
Head of digital marketing & development – Syed Ahmad
TNT Publishing
CEO - Kevin Ellis Chairman - Ken Hurst Publisher - TNT Multimedia Limited TNT Multimedia Limited, Unit 209, 16 Brune Street, London E1 7NJ
Enquiries
Telephone: 00 61 (0) 2 8332 7512 nicholas@tntdownunder.com
Welcome Apartments the jewel for Crown International Houses in Sydney have long been unaffordable. The city is lagging behind in its supply, producing less than half of the underlying demand for residential property, and there is a shortage of some 30,000 homes a year. The knock-on consequences affect the whole system. Rents in Sydney are rising four times faster than inflation. The pressure on public housing waiting lists grows unsustainably. It is a housing system in acute stress. It is broken. But in crisis there is always opportunity. “Sydney is our current area of focus,” says Iwan Sunito, joint-CEO of property developer Crown International. The rapidly growing Sydney-based residential developer is the current darling of the local industry. Few companies in the market have achieved the phenomenal growth of that Crown has and in the past three years it has developed projects with a completed value of A$1.8 billion after buying sites from large developers Brookfield, Lend Lease and Mirvac in Newington and Rhodes. Crown has a string of world-class projects underway in several Sydney suburbs, including Top Ryde shopping centre in Sydney’s northwest. It paid A$4.3 million for the development rights before a syndicate of banks took control of John Beville’s Bevillesta Pty Ltd. Crown also bought the right to build apartments in the air space above the shopping centre for A$37 million. You can read more about it and Sydney’s property development market on page 20. It is a fascinating read. This month we have a number of other exciting features for you, including a look at what to expect from the AFL season, all the latest news and a look at Akzo Nobel, Nitro Drilling, Bisley Workwear and Pilz. Enjoy the magazine
Ian Armitage Editor
SUBSCRIPTIONS
Telephone: 00 61 (0)2 8518 1223 nicholas@tntdownunder.com
www.australasiaoutlook.com 3
CONTENTS
Features 06 12
20
Rite of Passage An Anzac Day tour can give you a glimpse into Gallipoli’s haunting past, but also helps you to discover Turkey’s present
20
cro w n i n t e rna t i onal
a k z ono b e l
30
A s s oc i a t i on for e w or d
Akzo’s master stroke Interpon Powder Coatings is a global brand of AkzoNobel, the world’s largest coatings company
Green Building Council of Australia (GBCA)
Focus Food & Agriclutire Focus Logistics
38
4
Jewel in the Crown Australasia Outlook profiles residential developer Crown International and talks with joint-CEO Iwan Sunito
26
34
34
AFL: Old Cats, any new tricks? Geelong confounded the doubters last year – can they do it again?
16
Cover Focus Construction
12
News
M ooloola h R i v e r Fisheries Plenty more fish in the sea Jane McCallion profiles Mooloolah River Fisheries in Mooloolaba
DB Sc h e n k e r Making great things possible DB Schenker is one of the world’s largest integrated logistic providers
P i l z a u s t ral i a
56
A s s oc i a t i on for e w or d
Better safe than sorry Australasia Outlook talks to Pilz’s Scott Moffat
Industry Capability Network (ICN)
58
B i s l e y Wor k w e ar
64
N i t ro Dr i ll i ng
70
A s s oc i a t i on for e w or d
Focus Mining
Drilling contractor rides the boom From one rig in 2002, Nitro Drilling has expanded to employ more than 200 people
50 58
Getting the job done Bisley Workwear, an Australian icon for hardworking tradies
Resource industry employer group AMMA
74
Focus Manufacturing
50
A s s oc i a t i on for e w or d The Chamber of Minerals and Energy of Western Australia (CME)
64 5
News L i f e s t y l e
B u s i n e s s
Australian troops set to be pulled out of Afghanistan a year ahead of schedule
Economy going sideways: NAB
Australia will begin to withdraw troops from Afghanistan this year - 12 months earlier than originally planned. Prime Minister Julia Gillard also announced that she expected all international forces there to be playing a supporting role for Afghan forces by mid-2013. She will take her timetable for Australia’s troop withdrawal to a NATO conference on Afghanistan in Chicago in May. “I am now confident that Chicago will recognise mid2013 as a key milestone in the international strategy,” she said in a speech to the Australian Strategic Policy Institute in Canberra. “A crucial point when the international forces will be able to move to a supporting role across all of Afghanistan.” All foreign combat troops are due to be out of Afghanistan by the end of 2014 and Australia had been expected to withdraw then too.
Business conditions in Australia improved slightly over the first three months of 2012, a survey by National Australia Bank (NAB) shows. According to the survey, the business conditions index for the March quarter was plus three points, from plus two in the December quarter - staying just above the long-run average level of one index point. NAB group chief economist Alan Oster said the survey result indicates the Australian economy is going sideways - failing to gain much ground but not weakening too much. “The divide between the stronger mining and serviced-based sectors and
the weaker consumer and trade dependant sectors remained a marked feature of the economy in early 2012,” he said. “The improvement in conditions reflected a pick up in trading conditions and profitability, partly offset by a fall in employment conditions, suggesting that conditions at present represent strength in trading, rather than employment.” Business confidence fell two points to minus one point in the quarter, the survey showed. “At present, business sentiment appears heavily tied to gyrations in the global economy, which is inhibiting hiring and investment decisions,” Mr Oster said.
B u s i n e s s
Vic govt should help keep Qantas jobs Qantas maintenance workers in Victoria have called on the state government to step in and prevent their jobs being moved away under the airline’s rationalisation plans. Anthony Surace, a Qantas Tullamarine worker of 11 years, told reporters that he wanted the government to act. “At the moment we’re seeing nothing and they’re not coming out to say, ‘This is what we’re doing,’ so it’s disappointing,” he said. The Victorian government has come under pressure to reveal what it is doing to keep the airline’s heavy maintenance jobs in the state.
6
Premier Ted Baillieu told parliament the government was making representations to the airline to avoid the jobs being relocated. Qantas announced in February that 500 jobs would be made redundant nationally and further positions were on the line as it reviewed heavy maintenance and catering operations employing more than 2000 people. The airline wants to consolidate its three heavymaintenance bases - at Tullamarine and Avalon in Victoria and in Brisbane - to remain sustainable. The sites collectively employ about 1400 people.
B u s i n e s s
Industry seeks stronger ties to Asia Australia’s peak industry group, the Australian Industry Group, has called on the federal government to provide more assistance to companies seeking to break into Asian markets. The call was made in Ai Group’s submission to a review being conducted by former Treasury boss Dr Ken Henry on Australia’s role in the so-called Asian Century. In the submission, Ai Group chief executive Innes
Willox said Australia needs an “Asia-ready workforce” and the right economic settings to take advantage of the booming middle-class in the region. “Australian industry must lift productivity, and the Australian government could assist through continued investments in infrastructure, changes in policy to stimulate entrepreneurship, risk-taking, innovation and research and development, tax reforms and reductions
in the regulatory burden on businesses,” the submission says. In terms of policy, the Ai Group has suggested tax breaks for training executives in doing business in Asia, the formation of regional business networks, scholarships for Asian students linked to them working in Australia, and waiving visa requirements for business travel. It also wants more targeted trade missions and greater effort in removing trade barriers.
B u s i n e s s
B u s i n e s s
New vehicle sales rose in March
We treated workers respectfully says Toyota
Sales of new motor vehicles in Australia rose four percent in March, official data shows. In March, 89,694 new vehicles were sold, seasonally adjusted, compared to an upwardly revised 86,203 in February, according to Australian Bureau of Statistics (ABS) data. In the year to March, new motor vehicle sales rose four percent, seasonally adjusted.
Carmaker Toyota says it is satisfied with the way it handled the axing of 350 workers at its Melbourne plant. Unions and sacked workers say the company has been heavy handed in the way it gave people their marching orders. A senior company executive said, however, it was an unfortunate situation but one forced by the high value of the Australian dollar and falling exports. Senior executive director of sales and marketing, Matthew Callachor, said sacked workers at the Altona plant had been treated respectfully. “We had a selection of criteria for each of the 350 that were actually chosen,” Mr Callachor told reporters. “We don’t believe that there is anything we would have done differently at this juncture.”
prop e r t y
Construction still in contraction Australian construction remained weak again in March - the 22nd month in a row - although the pace of decline slowed. The Australian Industry Group/Housing Industry Association performance of construction index had a reading of 36.2 in March,
up 0.6 points from the month before.Readings below 50 indicate contraction. Residential and commercial construction showed significant weakness, with house building registering its lowest level in six months. House building showed a reading of 30.3, while apartments were 30.5 and commercial construction was 35.5. 7
News b u s i n e s s
Union slams Toyota over handling of redundancies The Australian Manufacturing Workers Union (AMWU) has criticised the way Toyota sacked 350 employees from its Altona plant.
The company announced in January that global market conditions were forcing it to cut about 350 jobs at the plant in Melbourne’s west. Most of the workers were unwillingly retrenched and 80 percent of them plan to appeal their redundancies at Fair Work Australia, AMWU said. The union branded Toyota’s tactics of calling in security guards and escorting workers offsite to sack them as heavyhanded and disgusting, while workers said they had been treated like dogs. Toyota ferried workers in mini-vans across the road to a reception centre where they were handed a folder with the criteria for their dismissal and told they had lost their jobs. AMWU vehicle division assistant federal secretary Dave Smith said the criteria, which included points for Toyota values, attendance and safety, was a sham for singling people out. 8
s por t
McGuire slams Malthouse The simmering ill-feeling between Mick Malthouse and Eddie McGuire has come to the boil, with the Magpies president saying his 2010 premiership coach “wouldn’t have a friend at Collingwood today”. Malthouse raised doubts about the game plan of new coach Nathan Buckley - his former assistant - saying the Pies defence was “leaky” and that the players weren’t adapting to a more adventurous approach, prompting McGuire to hit back. Malthouse also said All-Australian Leon Davis would still be at the club instead of playing in the WAFL with Perth. “Mick, if you’re listening out there mate, your legacy is secure,” McGuire told radio station Triple M. “You’ve been a sensational servant to the Collingwood football club, we love you, but move on now because picking over the scabs, you’re doing exactly what you used to hate Tony Shaw doing to you. “Give Bucks a bit of a go because when he was the captain he carried that team for you. He’s in his first year. “I love Mick and I’ve supported him 100 percent, but I tell you what, he wouldn’t have a friend at Collingwood today. He hasn’t missed anyone.”
L i f e s t y l e
Petrol hits three-year high Average Australian petrol prices hit a three-and-a-halfyear high last week, with the price of unleaded petrol rising 0.1 of a cent to 151.7 cents a litre in the week ending April 15, according to data from the Australian Institute of Petroleum. The national weekly average metropolitan retail price increased by 0.1 of a cent to 150.7 cents a litre, while the national weekly average regional retail price was unchanged at 153.6 cents a litre.
b u s i n e s s
Rio Tinto’s iron output up but copper slips Mining giant Rio Tinto increased production of key commodities including iron ore and coal in the March quarter, but copper output fell by 18 percent due to lower grades at its US operations. Rio Tinto said in a statement that first quarter global iron ore shipments of 54 million tonnes (Mt) were up two percent compared to the same period in 2011. Production was 5Mt above shipments as ports in Western Australia were closed during
cyclones, the miner said. Its multi-billion dollar expansion of iron ore production and export capacity in the Pilbara region continues, rising by about 5Mt to 230Mt during the March quarter. Chief executive Tom Albanese said the miner had a solid three months to March 31 with increased production of iron ore, coal, bauxite, alumina and titanium dioxide because weather was better than in 2011 and operating performance was consistently high.
“We were therefore well positioned for the relatively strong markets in the first quarter, albeit with continued volatility as we anticipated,” Mr Albanese said in a statement. Rio Tinto said wet weather during the March quarter significantly hampered production across its New South Wales and Queensland coal mines, and further impacts were expected from delays in removing overburden or waste material.
s por t
AFL legend Jim Stynes loses cancer battle One of the AFL’s best loved figures, Jim Stynes, has died at the age of 45 after a long, public battle with cancer. Stynes was an AFL legend, Melbourne president, noted charity worker and widely-admired man. He died at home with wife Sam and their children Matisse and Tiernan by his side. Sam posted a message on Facebook that gave an insight into how Stynes’ spirit survived to the end. “Not surprisingly, in his last week of life Jim continued to defy the odds and lived his life to the fullest,” she said. She also thanked Stynes’ carers and added that he was “pain-free, dignified and peaceful” when he died. Stynes will be remembered as a gentleman, an inspiration and one of football’s greats. “Jim’s legacy will be the greatest story in the history of the game,” Stynes’ former Melbourne teammate Russell Robertson said. “But he was a lot more than that.
“He was a guy who helped people with their lives ... he helped save lives.” Current Melbourne co-captain Jack Grimes echoed the sentiments. “Jimmy dedicated his life to others when he was the one who needed the most help,” he said. “I don’t think we can comprehend how much of a loss he’s going to be to so many people. “We really see him as a hero - he saved the Melbourne Footy Club.”
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News l i f e s t y l e
Bob Brown resigns as Greens leader
Bob Brown has resigned as leader of the Australian Greens. “I am sad to leave but happy to go,” he said in a statement. “It is good knowing that the Greens have such a depth of talent and experience lined up for leadership - I could only dream about that a decade ago.” The party’s deputy leader Christine Milne tweeted that she had been elected leader: “I’m honoured & excited to have been elected leader of the @GreensMPs to build on the great.” In a statement, she paid tribute to her predecessor’s “extraordinary leadership”. “For 25 years, Bob has been an inspiration to millions of Australians and a great force for good in our country,” she said. “Under Bob’s wise leadership, the Greens have grown into the undisputed third force in Australian politics.” Milne promised to build on the Brown legacy by reaching out to even more Australians who share the party’s values of looking after “our country and our people”. 1.7 million voters supported the Greens in 2010. 10
E u ro z on e
We can’t fix debt crisis, says ECB With fresh concerns over Spain and Italy rattling global markets, the European Central Bank (ECB) insists it can only treat the symptoms of the eurozone debt crisis, not cure it. “The ECB has addressed the immediate symptoms, but monetary policy cannot cure the underlying causes,” ECB executive board member Benoit Coeure said. The eurozone debt crisis has returned with a vengeance, with stock markets plunging and borrowing costs for Spain and Italy jumping as doubts grow over their ability to control their finances. In Italy, borrowing costs have doubled, while Spanish 10year bonds are flirting with rates around 6.0 percent. “The situation in the financial markets has reached a turning point but recent market developments have highlighted that it remains fragile,” Coeure said, speaking at a conference in Paris. The ECB has cut interest rates to historic lows and it has also bought up the bonds of debt-stricken countries. Most recently, it pumped more than 1.0 trillion euros ($A1.28 trillion) into the banking system via two so-called long-term refinancing operations (LTROs) in a bid to avert a dangerous credit squeeze. The ECB’s measures “have helped to break (a vicious) cycle and to bring confidence back into the euro area financial system,” Coeure said. The bank, he added, has no plans to wind down its anticrisis measures for now but insists it is up to governments to tackle the root causes and get their finances in order.
prop e r t y
Housing finance falls for a second month The number of home loan approvals fell for a second consecutive month and should make an interest rate cut in May more certain, according to economists. Australian Bureau of Statistics data shows the number of home loans approved in February fell 2.5 percent. Total housing finance by value fell 1.3 percent, seasonally adjusted, to A$20.295 billion.
B u s i n e s s
Strong third-quarter sales for Woolworths Retail giant Woolworths appears to be winning its price war with Coles and has reported third quarter sales of A$14.07 billion, up 3.8 percent compared to the previous corresponding period. Chief exec Grant O’Brien said that Woolworths was “leading the market” ahead of Coles, owned by Westfarmers, which began the price war in January last year with its A$1 per litre milk promotion. Woolworths said that its prices-slashing promotions were becoming more targeted and would continue to be an important driver of sales growth. “We believe our offer is the leading offer in the marketplace,” O’Brien told
an analyst briefing. “The gap (between Woolworths and Coles) jumps around a little bit but over a period of time, we’re confident we have the right position.” He said the company was investing in promotions to attract customers. “We know what promotions work; we know the effect it has on customers.” The company said its increase in third quarter sales across all divisions, including liquor and petrol, came despite a tight consumer market and substantial price deflation. Average prices dropped 4.4 percent compared to the previous corresponding period, partly due to the price war
B u s i n e s s
Volkswagen to build new plant in China’s west German auto giant Volkswagen says it plans to build a new plant in Xinjiang, a province in China’s undeveloped far west. “We believe that there’s big potential in the west of China,” marketing and distribution chief Christian Klingler said in Beijing on Sunday, on the eve of a major auto show in the Chinese capital. “The new plant is only part of our ‘go west’ strategy.” The car manufacturer already has several production sites in China, all located in the east, with the exception of one in Chengdu, a city in the western province of Sichuan. The group last year sold 2.3 million vehicles in China and plans to invest 14 billion euros in the country between 2012 and 2016. VW sold more than two million vehicles worldwide in the first quarter of the current year, thanks to strong demand in China, North America and Russia. The group’s car brands cover VW, Audi, Skoda and SEAT and its commercial vehicles division includes MAN and Scania.
with Coles. Deflation for fresh produce was close to 20 percent. Mr O’Brien also said sales were affected by an unseasonably cold and wet summer period. The company opened six supermarkets, two Dan Murphy’s liquor stores and three of its first 10 Master hardware stores during the third quarter. It said it planned an additional eight supermarkets and seven Dan Murphy’s in the current quarter. Woolworths remained cautious about the outlook for the fourth quarter, particularly given uncertainty about the impact of the carbon tax and interest rates.
Spor t
Vettel believes 2012 will be unpredictable Red Bull’s Sebastian Vettel believes the 2012 F1 season will continue to be unpredictable despite surging to his first win of the year in Bahrain. The 24-year-old claimed his first victory since last year’s Indian Grand Prix and the 22nd of his career when he drove from pole position to the chequered flag. But he said he expected the rest of the year to remain an unpredictable rollercoaster. “It’s a very tight season, the cars are very close to each other and small things can make a huge difference,” the new championship leader said. “I think we started the season saying that the McLaren is the fastest car by quite a bit and we’ve seen that on Sunday it can be a different picture. I think they still have one of the strongest packages. “But you need to get everything right. You need to have the right tyres, you need to treat them right, you need to find the right set-up through the course of the weekend, so there are a lot of things to look out for.” 11
Old Cats, any new tricks?
T
he new AFL season has officially kicked off and already we’re wondering have the wheels fallen off at Collingwood? Is it just the tightening of a few loose screws, or is the vehicle beyond repair? The Magpies are struggling to kick enough goals, finding it difficult to defend them, and facing massive queries over the depth of their list. Last year’s surprise package was Geelong, who confounded the doubters. After three flags in five years, what’s next for them? Any forecast about the coming season is fraught with risk. If we’d have written this just a few weeks ago, it may have been different. We’ve stuck to our guns. There’s the big three – Collingwood (… and we’re having major doubts), Hawthorn and Geelong – who have split the past four flags between them – and the two new kids on the block – Gold Coast and GWS – who will likely finish last and second-last. There’s really not much separating the other 13 sides but here’s our best attempt to put them in order. 12
Geelong confounded the doubters last year – can they do it again? By Tom Sturrock
AFL SEASON PREVIEW
Blues Their gun midfield means they’ll play finals for the fourth year in a row but the Blues still lack the depth or focal point in attack required to leapfrog any of the top three. Key player: Chris Judd – the era’s most complete on-baller. Prediction: 4th – the next step will prove hard to take.
Bombers James Hird’s improving young side will be looking to consolidate this year after limping into last year’s final series and being belted by their arch-rivals, Carlton. Key player: Jobe Watson – needs help from the young mids. Prediction: 8th – another year of finals exposure.
Bulldogs After three years in the top four, the Doggies slid to 10th last year and a period of rebuilding looms. It’s hard to see where their goals will come from, meaning it could get messy. Key player: Adam Cooney – his dodgy knee is a big worry. Prediction: 13th – will get worse before it gets better.
Cats Everyone said they were too old last year but the Cats responded by winning another flag. In their best 22, 10 are 28 or older – the loss of Brad Ottens and Cameron Ling may tell. Key player: Tom Hawkins – time for Tomahawk to swing. Prediction: 3rd – still powerful; who’d write them off?
Crows Have developed a nucleus of players with between 50 and 200 games that can propel them up the ladder. Looked fit, aggressive and well-drilled in winning the pre-season comp. Key player: Patrick Dangerfield – matchwinner in the making. Prediction: 7th – have the hard edge to make it into finals.
Demons The kids are impressive but still raw, and their senior players offer precious little in the way of leadership. More progress was expected but they’ve spent a few years treading water. Key player: Mitch Clark – on big bucks, so needs to deliver. Prediction: 14th – a sixth year out of finals awaits.
Dockers Fremantle are notoriously unpredictable – mostly in a bad way – but there’s enough talent and experience to suggest new coach Ross Lyon has something to work with. Key player: Matthew Pavlich – should be left to play forward. Prediction: 6th – barring injuries, they have a top-eight list. 13
Eagles Last year, the Eagles came from nowhere to make a preliminary final. If they can be thereabouts again, while developing their youngsters, it will be a successful season. Key player: Josh Kennedy – will anchor the Eagles’ attack. Prediction: 5th – losing Mark LeCras for the year hurts.
Giants The league’s newest side will cop some horrific beltings in their first year. It’s not the end of the world, provided their kids show they have what it takes. Key player: Tom Scully – pressure is on the star recruit. Prediction: 18th – will do well to win a couple of games.
Hawks They went within an inch of beating Collingwood in last year’s epic preliminary final. They overachieved when they won the flag in 2008 but are now cherry-ripe to go again. Key player: Lance Franklin – simply unstoppable on his day. Prediction: Premiers – boast the right mix of glamour and grit.
Kangaroos There’s no guarantee they’ll emerge from the mid-ladder logjam. There are a few guns and some impressive kids, but that might not be enough to take the next step. Key player: Daniel Wells – the sparkle in a blue-collar side. Prediction: 11th – a year without finals will be a failure.
Lions After some disastrously short-sighted list management, the Lions are on the right track but can expect more pain given they’ve had to go back to square one. Nowhere near finals. Key player: Jon Brown – the Lions lack teeth without him. Prediction: 15th – must plough games into their kids.
Magpies They were mugged by Geelong in last year’s grand final but have quality on every line, and Nathan Buckley replacing Mick Malthouse as coach shouldn’t rock the boat too much. Key player: Scott Pendlebury – all class in the engine room. Prediction: Runners-up – every chance to go all the way.
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AFL SEASON PREVIEW
Power
Swans
Port Adelaide are a proud club and might yet surprise but they look like they’re in a hole and simply don’t have the playing list to climb out. Not this year, anyway. Key player: Travis Boak – Port’s only bluechip midfielder. Prediction: 16th – a fifth straight year without finals looms.
They punch above their weight thanks to resilient veterans and consistent contributions from lesser lights. Well-balanced and committed, the Swans are unlikely to bottom-out. Key player: Adam Goodes – the 300-gamer is still a star. Prediction: 9th – vying for the last few spots in the eight.
Saints This crop of Saints looked like breaking a premiership-drought now spanning 45 years but they played three grand finals – two in 2010 – without winning one. Could be curtains. Key player: Nick Riewoldt – still carries the can in attack. Prediction: 10th – rely too heavily on the same old heads.
Suns In their second season, the Suns will expect their young guns to take more responsibility but it’s a young side still very much in the development phase. Hopefully fewer thrashings. Key player: Gary Ablett – the stand-out in a developing side. Prediction: 17th – still too inexperienced to challenge.
Tigers It’s been 10 seasons since Richmond played finals and this batch of young Tigers are made of the right stuff but have yet to show the consistency required to make the top half. Key player: Dustin Martin – could be the next big thing. Prediction: 12th – will show glimpses before falling short. 15
Rite of Passage
An Anzac Day tour can give you a glimpse into Gallipoli’s haunting past, but also helps you to discover Turkey’s present. By Jahn Vannisselroy
16
S
eeing in Anzac Day at Anzac Cove in Gallipoli is a rite of passage that leads thousands of Antipodeans to Turkey on April 25. And there’s a multitude of Anzac Day trips to choose from, with tour operators offering up itineraries that span anywhere between two days and two weeks. While it’s the big day that is most important, most excursions tack on other destinations in Turkey that are well worth your time. Here, we show you what you can expect from the main event, and provide a guide to some other parts of the country that you can explore while on an Anzac tour.
Rite of Passage
Anzac Cove As dawn breaks at North Beach on the Gallipoli Peninsula, it’s not the wind whistling across the water that’s the most chilling sensation around. Nor is it the damp grass where we’ve lain all night. It’s the refrain of The Last Post that sends tingles up the spines of the 10,000 sombre Antipodeans huddled at the foot of the hill known as the Sphinx. The sound of the lone bugle highlights the eerie silence as the sun peeks over the horizon, promising, but not yet delivering, warmth. We stand for our fallen brothers, who checked out of this world on the beaches of Gallipoli, guns in sweaty hands, fear thumping in tight chests. The day before the Dawn Service, Gallipoli is a lively place. The inlet glows golden, heated by our brightest star’s afternoon caress. At first glance, Gallipoli shows no trace of its brutal past. But a walk to the beach soon reveals rows of young men’s graves. The night before the Dawn Service, at Anzac Cove where thousands camp out, the hordes drape their flags on every available space. There’s none of the usual raucous banter that accompanies a band of travelling folk from Down Under. Even the most energetic party animals recognise contemplation and respect are the order of the day – though the complete ban on alcohol probably helps. As night unfurls its dark blanket across the bay, temperatures plummet. But few complain. “Harden up” is the sharp response delivered to those who do. We’re here for the thousands of young men, tempted into the armed forces with promises of ‘seeing the world’, who sacrificed their lives in a battle they could not win. We’re here – fully equipped with sleeping bags, thermals, and enough hot food to feed an army – for one night only. We will leave Anzac Cove. Some were not so fortunate. Tonight we remember them all. As darkness chokes the last of the daylight, the big screen flickers and glows with tributes to our fallen compatriots. The fresh faces of young men slaughtered where we sit draw gasps from the assembled crowd. It’s the face of James Martin, the youngest soldier to have his journey extinguished, that causes the biggest jolt. The Australian was 14 when he contracted typhoid in the trenches and died soon afterwards. Martin had lied to a recruitment officer, saying he was 18. “I can’t even imagine going to war now, and I’m 32, let alone 14,” an Aussie voice says. Murmurs of agreement echo from the freezing hillside. A band play into the night – their renditions of First World War songs breathe life into the images we watch on screen. Documentaries softly relate the
stories of those who survived and their offspring; we’re reminded war affects generations, robbing families of their leaders, their mates, their lovers. As the sun rises, the last notes of Reveille evaporate and the final prayer is delivered before we sing all three – Turkish, New Zealand and Australian – national anthems. Soon after, the migration to either Lone Pine (for Australians) and Chunuk Bair (for New Zealanders) begins. Thanks to the rising heat, it’s an uphill struggle to get to the New Zealand ceremony, but a glance at the old trenches at the side of the road makes sure complaints are never given voice. What we do hear at Chunuk Bair, however, is Lieutenant Colonel William Malone’s last letter to his wife, written August 5, 1915. “My desire for life so that I may see and be with you again could not be greater, but I have only done what every man was bound to do in our country’s need.” The words from the grave soar over the crowd, each an unavoidable spark of pride, honour and love lost. “I am prepared for death and hope that God will have forgiven me all my sins.” He was killed three days later and remains one of the many New Zealanders with no known grave at Gallipoli. As the dignitaries tenderly lay wreaths at the foot of the towering memorial, the night’s chill has completely given way to the sun’s relentless scorch. It’s yet another feat of endurance but, as we are all now fully aware, nothing compared to the suffering, the fear, and the bravery of our predecessors.
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Set in the historical region of Central Anatolia, it has hosted civilisations from the Persian Empire, the Romans and Byzantines, and eventually Turkish clans in the 11th century. Chances are that on a tour, you’ll also pay a visit to the Ihlara Valley, near the Mount Hasan and Mount Melendiz volcanoes of Cappadocia. Here, a 100m-deep canyon houses more than 4000 rock-cut cave homes and churches. You should also get chance to check out some of the area’s underground cities, which were home to thousands of people. Some of these cities have as many as four floors, stretching 20m below ground. Many were connected to each other via a network of underground tunnels. These mind-blowing warrens of weirdness are thought to have been in use since the Bronze Age. Delving into them is an experience you’ll never forget.
Istanbul
Cappadocia There’s nothing on this Earth quite like Cappadocia. Its landscape of dwellings, temples and churches carved from the countryside’s stone cliffs creates a scene stolen straight from a storybook, and never fails to astound. 18
Pamukkale This place has to be seen to be believed. Pamukkale’s calcium terraces look like something from another planet; a series of shelves formed from calcium carbonate in which calcium-rich waters have pooled. (Think of Asia’s rice terraces, only rendered in a sparkling white.)
KNOW YOUR TURKEY
Where to start in Istanbul? Turkey’s biggest city is an intoxicating blend of east and west. Majestic mosques stand elegantly against the skyline, while heaving bazaars do serious business below. (Don’t miss the Blue Mosque and the Grand Bazaar, the finest examples of both.) Topkapi Palace is another must-see, a grand setting for the sultans of the Ottoman Empire, while the Hagia Sophia is yet another picture-perfect sight – once a cathedral, then a mosque, and now a museum. For the ultimate taste of the exotic east, you have to try a Turkish bath. They won’t be gentle with you – expect to have buckets of water unceremoniously dumped over your head and to be slapped into a furious lather – but it sure feels refreshing. And you’ll get a soothing apple tea to help you relax afterwards. Then there’s hip Istanbul – the flashy clubs, modern galleries, Oxford Street-esque shopping districts and overtly gay/ lesbian bars. Still, don’t feel like it’s too touristy and not trendy enough to enjoy a cruise on the Bosphorus and toke on a shisha (or nargileh as they call it in these parts) while watching a whirling dervish. It’s all part of the fun.
mustafa kemal ataturk (1881-1938) is Turkey’s most revered figure. You will see his face on flags and murals no matter where you travel in the country. He was a soldier and a general in Turkey’s army before becoming president in 1923 and modernising the country. Ataturk was at Gallipoli in 1915 as commander of the 19th Division and was on hand to oppose the Anzac landing in April. His excellent grasp of strategy and ability to inspire his troops with his reckless bravery in action proved crucial in thwarting the Allies. He later won the respect of New Zealanders and
Rite of Passage
Thanks to its otherworldly appearance, and the wonders that the waters are believed to work on muscles and bones, Pamukkale nowadays is a tourist-packed spa town. Indeed, over-exposure to tour groups has had an adverse effect on the site and you can no longer bathe in the pools on the terraces. But that shouldn’t take away from Pamukkale’s visual impact, which will still steal the breath.
Ephesus One of the world’s best-preserved classical cities, Ephesus (or Efes, like the beer) started out as an ancient Greek city before it became a major Roman stronghold. It’s probably best known for the Library of Celsus, of which the impressive façade – built in 125AD – has been reconstructed from the original pieces, though it looks like it could crumble into a heap any minute. Really, you’re spoilt for choice when it comes to picking a favourite mind-boggling ruin – the theatre at the end of a colonnaded street, for example, is ruddy massive, and the Temple of Hadrian dates from the 2nd century.
Brothers in arms The history of gallipoli is littered with stories about the camaraderie between the opposing sides. As boredom set in there was a “constant traffic” of gifts being thrown across no man’s land: sweets and fruit from the Turkish soldiers, and cans of beef and smokes from the Allies. There are tales of one old Ottoman batman being allowed to hang his platoon’s washing on the barbed wire without attracting fire. At one stage, a ceasefire was declared and the two sides moved their dead and wounded. The tradition of friendship is continued today in Turkey where New Zealanders and Australians are greeted warmly and treated with respect throughout the country.
Kusadasi
Troy
This is the place to get your party on. Think pubs, karaoke and endless lines of hawkers trying to sell you a carpet. There are some great Aegean coast beaches nearby and a few classier bars in the old quarter, but if you’re ready to let loose after an emotional Anzac Day, Kusadasi’s firmly-on-the-tourist-trail nightlife is precisely what you’re looking for. And there are worse ways to cure a hangover than snoozing on the sand to the sound of a lapping sea.
You might not get Brad Pitt in a skirt, but an excursion to Troy still makes for a fascinating diversion. The setting for the Trojan War and that horse boasts a smattering of old structures – including an amphitheatre and portions of the legendary walls – and excavations that can give you a decent sense of how the ancient town must have looked.
Australians with his 1934 tribute to the Anzacs: “Those heroes that shed their blood and lost their lives ... You are now lying in the soil of a friendly country. Therefore rest in peace. There is no difference between the Johnnies and the Mehmets to us where they lie side by side now here in this country
people’s salvation. Among these was the abolishment of Islamic Law and the introduction of a secular legal code. He also discouraged the veiling of women and encouraged western clothing. In 1934 he gave Turkish women the vote and the right to hold office. If you’re in Istanbul visit the Ataturk Museum to find out more about his life.
of ours ... you, the mothers, who sent their sons from faraway countries wipe away your tears; your sons are now lying in our bosom and are in peace. After having lost their lives on this land, they have become our sons as well.” Between 1924-1938 Ataturk introduced a series of reforms he considered vital to his
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Jewel Crown in the
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Crown International
Australasia Outlook profiles residential developer Crown International and talks with joint-CEO Iwan Sunito. By Ian Armitage
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Focus Construction
wan Sunito is joint-CEO of rapidly growing Sydney-based residential developer Crown International. He helped start the company with Paul Sathio in 1996 and over the last 10 years it has grown to become one of Australia’s leading property development groups with an A$2.5 billion portfolio of projects completed, under development or in the pipeline. “We are privately owned and actively engaged in property development, construction, property investment and asset management,” Sunito says, speaking to Australasia Outlook from Jakarta. Few companies in the competitive Australian property development market have achieved the phenomenal growth that Crown has. “We’ve really gone from strength to strength,” says Sunito. “We’ve not grown too quickly or taken too many risks and in 16 extraordinary years we have grown from nothing into what we are today.” Crown has a string of world-class projects underway in several Sydney suburbs, including Top Ryde shopping centre in Sydney’s northwest. It paid A$4.3 million for the development rights before a syndicate of banks took control of John Beville’s Bevillesta Pty Ltd. Crown also bought the right to build apartments in the air space above the shopping centre for A$37 million. “It is a huge development and we will build 650 apartments. The homes are positioned over 80,000sqm of retail space and more than 290 specialty stores. The added convenience of living so close to shopping and transport facilities is a key selling
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Crown International
feature for many buyers at Top Ryde City Living,” Sunito says. The apartments are available for pre-sale, with prices starting from A$500,000 for a one bedroom apartment including one car space, A$650,000 for a two-bedroom apartment and A$875,000 for a three bedroom apartment with two car spaces and spectacular city skyline views. “It is one of the safest suburbs of Sydney,” says Sunito, who added that Crown has recently made three key purchases in central Sydney. “You are talking about Clarence Street in Sydney’s CBD? That takes us to another
level. At 161 Clarence Street, we’ll develop a A$200 million, 27-storey residential tower. It will offer five-star resort style living with a mix of one, two and three bedroom and penthouse apartments.” Crown has also begun the construction of V, the A$300 million self-labelled ‘crown jewel’ of Sydney’s second CBD Parramatta’s urban renewal. The building is a state-of-theart “vertical village” and features a resort-style hotel, 420 luxury apartments, premium office space and quality retail. “We are enormously proud of that,” says Sunito.
Height Safety Engineers Height Safety Engineers (HSE) is proud to have been associated with Crown Group in its recent development at Top Ryde. HSE’s involvement was to provide an innovative solution to fall protection issues at roof levels and in the plant room areas. HSE’s focus remains on the fall protection and confined space markets. Together as a team we will ensure our clients will benefit from our investment in this industry. HSE provides value differentiation in its products, services and expertise. Our investment is reflected by new and innovative solutions which lead to the delivery of enhanced worker protection from work-at-heights and confined space hazards. To contact one of our fall protection experts call 1300 884 978, or email us at enquiries@ heightsafety.net today.
“At 161 Clarence Street, we’ll develop a A$200 million, 27-storey residential tower. It will offer fivestar resort style living with a mix of one, two and three bedroom and penthouse apartments”
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Crown International
V follows Crown’s overwhelming success with its inaugural Parramatta project, the A$125 million Gallery complex at 8 Cowper Street, where 90 percent of the 246 apartments were sold off the plan and the remainder were sold within weeks of completion. “Parramatta is a key residential and commercial growth hotspot,” says Sunito. Crown has certainly tapped into a gap left by the departure of the likes of developer Stockland from the mediumdensity sector. In the past three years, it has developed projects with a completed value of A$1.8 billion after buying sites from large developers Brookfield, Lend Lease and Mirvac in Newington and Rhodes. “Our developments are not only underpinned by Australia’s stable economy but, most importantly, we offer a product that is seeing very strong and sustainable growth based on solid principles,” Sunito says. “Sydney is our current area of focus. It is the only major city lagging behind in its
“Our developments are not only underpinned by Australia’s stable economy but, most importantly, we offer a product that is seeing very strong and sustainable growth based on solid principles” 24
“The timing depends on how fast we can build up an investment portfolio and also market conditions”
Focus Construction
supply, producing less than half of the underlying demand for residential property and there is a shortage of 50,000 dwellings. The shortage is reflected on the fact the vacancy rate is only 1.3 percent - far below the 20 years average of 2.5 percent. Sydney also has a very low unemployment rate and is the major city where prices have kept going up in comparison to other major cities in Australia. And there is a new stamp duty policy for first homebuyers. “We’ve reached a tipping point for apartment living in Sydney, I think,” he adds. “There has been a shift in the way people live, away from housing to apartment living with access to facilities, transport and convenience. There are three types of buyers that drive the growth - local residents, who are the younger generation who prefer living in an apartment with great facilities away from the suburban house; the aging population who are downsizing; and new immigrants who are used to living in high-rise apartments near the major centres. Also, investors are looking for safer alternatives as their share portfolios have been affected through the global financial crisis. In comparison to other major CBD in cities such as Hong Kong or Singapore, with a similar GDP of A$300 Billion, Sydney prices are less than half.” He says there is banking support too. People can borrow up to 80-90 percent for residential purchase. “Sydney is historically a 10 percent growth per annum on the basis of a 10 year investment.” The prognosis is good. Sunito says Crown has embarked on a twophase strategy that will see the group undertake an initial public offering within five years. “The timing depends on how fast we can build up an investment portfolio and also market conditions.” Whatever the eventual timing, the signs are clear: Crown Group is on an impressively upward trajectory.
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Akzo’s
master
stroke Interpon Powder Coatings is a global brand of AkzoNobel, the world’s largest coatings company. By Ian Armitage
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AkzoNobel
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Focus Construction
kzoNobel Powder Coatings is the largest global manufacturer of powder coatings and a leader in powder coatings technology. Whatever your powder coating needs, it has a solution. It is a truly global business, with around 4,000 dedicated employees spread throughout all five continents. “We produce high quality coatings which can be used on everything from microwave ovens, to office furniture, alloy wheels to aluminium windows,” says Branka Vinaj, business manager for AkzoNobel in Australia and New Zealand. The group’s head quarters are in Sassenheim, The Netherlands, and the business is divided into five sub business units: Functional; Europe East, Middle East and Africa; Europe West; The Americas; and Asia Pacific. Australia falls into Asia Pacific. “The powder business in Australia has manufacturing and sales in Australia, and sales in New Zealand,” says Ms Vinaj. “We have a strategy fine-tuned to meet local needs. And we’re continuously developing.” Long, medium and short-term research and development support comes from four key areas, she says: The innovation centre, based in Felling; The Centres of Expertise spread around the world; The national technical support teams; and AkzoNobel’s product development labs. “Together with our customers, we work to take powder coatings technology into the future,” says Vinaj. AkzoNobel’s powder coatings are always solvent-free and can be applied to metal and other conductive surfaces. They are used on many everyday items and customers work in diverse industries. “We supply several key segments including appliance, architectural, automotive and general industry with our global brand, namely Interpon,” Vinaj says. Interpon is the brand name of the powder coatings supplied by AkzoNobel. Interpon Powder Coatings are used on a variety of applications, and it is considered the world leader in architectural powder coatings, having supplied coatings on some of the world’s most recognisable landmarks
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AkzoNobel
including the Beijing Bird Nest, Hong Kong’s AIG Tower, Wimbledon Centre Court and Melbourne’s Eureka Tower. “We are uniquely placed to meet the needs of our customers locally and globally,” says Vinaj. “At the moment my official title is business manager for the powder business in Australia and New Zealand. AkzoNobel is a great company to work for and I’ve been with them 25 years this month, performing a variety of roles. I started off in the automotive business before moving over to powder and have also worked in the lab, in R&D, QC, technical service and sales. It is a wealth of experience.” AkzoNobel’s Australian operations are headquartered in Sunshine, Victoria. Plans are afoot to expand the business. “I’m currently writing a complete restructure of the sales team, splitting into regional responsibilities,” says Vinaj. “One key reason for restructuring the sales team is that we indentified that the existing structure needs streamlining and redefining – we need to simplify the way we operate. We also felt that based on the skills of the individuals within our team, we could grow and develop the business even further from where we are, if the high performers we have are given new regions to explore “We are now looking at that next step change in terms of market share growth and how to best go forward with that. This new structure is going to help us do that.” The past 12 months have been challenging for the business, however AkzoNobel is not alone in finding things tough. “This is probably a tougher time now than during the global financial crisis, without a doubt. In terms of our own business performance, I am very pleased. We are continuing to achieve market share growth in a very tight market. We are still a little bit off target and where we’d like to be, but it’s a good start to the year and I’m comfortable with how the business is going in terms of growth, in both market share and profitability. “It has been a hard start, but it is a positive start to the year and we are always determined to exceed the market’s needs.” This is the time for innovation, Vinaj says. “We are continually looking at how we can 28
“Together with our customers, we work to take powder coatings technology into the future” differentiate ourselves from our competitors and protect ourselves from imports from Asia. We are always under threat from that, being heavily dependent on manufacturing, more and more of which is moving offshore. How do we differentiate ourselves? Product technology is one that we have worked very hard on over the last four or five years, creating products specifically suited for the local environment and specifically suited to our customers. “These are things we are constantly working on.” Warranties are another differentiator. “With industry leading initiatives such as Australia’s leading architectural powder coatings warranty offering, Interpon D, MiniB and MiniB Micro, and the soon to be released Interpon Steelplex, we are leading the way in performance and decorative powder coatings in Australia.” She says the Australian arm’s strength is the ability to focus on the needs of the customer and understand market requirements. “That’s something we do very well. We’re very good at qualifying our market, qualifying our customers’ requirements and developing solutions.
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“I think that stems from our experience and we have a lot of it. Many people have been here several decades. There is stability there. Our customers respect the fact we have been in the market a long time, we are stable, and have sales people with extensive experience. There is not less than an average of 15 years experience amongst our senior sales managers. There is reliability there.” If Vinaj met a genie, what would she wish for? “More resources and specifically more sales people. Our strategy is sound. We just need more people on the ground to deliver it.” And what’s the secret to its success? “That’s easy to answer. The secret to our success, no doubt at all, is the people within our business, and the fact everybody in the business knows and believes in one of our most important core values to ‘focus on our customer’s future first’. Everything else after that is easier. “We’re determined to exceed the market’s expectations.” To learn more visit www.interpon.com/au.
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Green Star
By Romilly Madew, Chief Executive, Green Building Council of Australia
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I
n Australia, the green building movement only gained momentum after the Sydney Olympics in 2000 received worldwide recognition as the ‘Green Games’. With venues and facilities that established new benchmarks in design excellence and best practice sustainability, Australia’s property and construction industry demonstrated that green buildings were indeed achievable. But at the time, the industry had few metrics or agreed methodologies to measure
Green Star rising
In 2005, another green icon emerged: Council House 2. CH2 achieved Australia’s first 6 Star Green Star – Office Design v1 rating and was not just a demonstration of environmental efficiency, but also showed that green building design can deliver impressive productivity benefits. A post-occupancy survey of CH2 recorded a 10.9 percent boost to productivity, with estimated annual cost savings of A$2 million. Another ‘first’ came in 2008, when the Melbourne Convention and Exhibition Centre became the world’s greenest convention centre with a 6 Star Green Star rating for sustainability initiatives which still remain one-of-a-kind today. These include the eye-catching façade, which towers 18 metres high and is constructed of spectrallyselective glass which reduces heat gain. The extensive solar hot water system generates around 35 percent of the facility’s general hot water requirements, while the innovative displacement ventilation system provides excellent air quality to conference delegates. Another influential green project was also certified in 2008: the Bond University Mirvac School of Sustainable Development, in Queensland. The first Green Star education facility in Australia achieved a 6 Star Green Star – Education PILOT rating and acts as a ‘living laboratory’ for the advancement of teaching sustainability principles and practices. Bond University set the bar for sustainable schools; today we have more than 100 green education projects either certified or registered to achieve Green Star ratings.
Focus Construction
green building, few assessment tools or benchmarks of best practice. There was no organised approach to knowledge-sharing or collaboration. Nor was there any way for the industry to promote or profit from green building leadership. In 2002, a group of green building pioneers recognised the need for an independent organisation to develop a sustainable property industry in Australia and drive the adoption of green building practices. The Green Building Council of Australia (GBCA) had arrived. The following year, in 2003, the GBCA launched Australia’s first holistic environmental rating system for buildings, Green Star. That same year, Lend Lease announced that it intended to construct Australia’s first 5 Star Green Star – As Built project, demonstrating ‘Australian Excellence’. The general outcry was “it can’t be done”. At the time, the benchmarks for a 5 Star Green Star rating seemed exceedingly high. Nevertheless, Lend Lease designed 30 The Bond to excellent environmental standards, with Australia’s first widespread application of passive chilled beam technology to assist in energy reduction. The result was a building that produces around 30 percent less greenhouse gas emissions than traditional buildings of similar dimensions at that time. Lend Lease led the way, demonstrating that a green building could be good for both the environment and the bottom line. The race was on.
“In 2002, a group of green building pioneers recognised the need for an independent organisation to develop a sustainable property industry in Australia and drive the adoption of green building practices. The Green Building Council of Australia (GBCA) had arrived” 31
Green Star rising
Also setting new benchmarks was Housing NSW’s Lilyfield redevelopment, which achieved a 5 Star Green Star – Multi Unit Residential PILOT rating in 2009. Housing NSW invested in environmentallysustainable initiatives such as gas-boosted solar hot water systems, 267 square metres of solar panels and a four kilowatt photovoltaic system to power common area lighting. The gas-boosted hot water system caters for 60 percent of hot water consumption and delivers annual savings of A$19,000 - or A$213 per unit - meaning the annual electricity bill for households will decrease by 25 percent. As affordable social housing units, a saving of A$213 per unit per year represents a major benefit for residents. In 2010, Lot 12 TradeCoast Central was not only the first industrial project to gain a Green Star rating, but did so with a range of innovations never seen before. The project achieved a number of Green Star innovation points, for features such as the precinct non-potable water storage and distribution system which reduces potable water consumption by 80 percent – the equivalent of more than 10,000 litres a day. And earlier this year, Flinders Medical Centre – New South Wing became Australia’s first Green Star healthcare facility, providing positive proof that green healthcare facilities are affordable and achievable. Among the impressive green features, a 286 panel solar hot water system, the largest in South Australia, provides hot water across the entire campus and is expected to reduce energy costs by A$400,000 per year. Today, Green Star is certainly ascendant. While a 5 Star Green Star rating seemed unachievable in 2003, today we have more than 380 Green Star certified projects around Australia, and a further 540 registered to achieve Green Star certification. A range of international reports have confirmed that green buildings positively impact everything from operational costs to return on investment, and from reputational equity to productivity. The Building Better Returns report, published in September 2011 by the Australian Australian Property Institute and Property Funds Association in association with the University of Western Sydney, has found 32
that Green Star-rated buildings are delivering a 12 percent ‘green premium’ in value and a five per cent premium in rent. Similarly, the most recent IPD Property Index has found that 4 Star Green Star-rated buildings deliver a 10.8 percent higher return on investment than nonGreen Star buildings. Since 2002, Green Star has penetrated the commercial office market to the extent that 18 percent of CBD office space is now Green Star certified. Recently, the Chief Executive of Australia’s largest privatelyowned development, funds management and construction company, Grocon, said it was a “liability to have too few Green Stars.”
into our neighbourhoods, communities and cities. In the future we will no longer view our buildings in isolation, but as interconnected pieces of a larger community. The GBCA’s Green Star – Communities project is driving this shift. The Green Star – Communities tool is set to become a national voluntary standard for the planning, design and delivery of best practice sustainable community development projects across Australia. We have just finished testing the rating tool credits on 28 projects from around Australia, and are confident that the Green Star - Communities rating tool will usher in a new era of sustainable development, one which looks beyond environmental efficiencies in the built environment and looks at how we build entire communities that are liveable and sustainable. At the same time, our Green Star – Performance tool, once
complete, will be able to rate the ongoing operational performance of the 98 percent of Australia’s building stock that is not brand new. Building owners and managers will be able to compare their building’s performance with other buildings of similar size, and set targets to increase energy and water efficiency, reduce waste and improve factors that influence productivity, health and learning, such as indoor environment quality. Tenants will gain a reliable, comprehensive rating when they shop around for new office, retail or residential space. Australia’s construction industry is now on the path of an important evolution. The Green Star environmental rating tools can support this evolution – helping the industry to reduce the environmental impact of buildings while improving their return on investment, boosting occupant health and productivity, and supporting a greener, cleaner future.
Focus Construction
So, what does the future hold? Certainly, the number of Green Star-rated buildings will continue to escalate, as developers, investors and tenants all recognise that green makes good business sense. More and more projects will be aiming for ‘World Leadership’ ratings, as building owners, designers and construction teams learn how to design for higher levels of Green Star achievement on conventional budgets. Even projects that don’t attempt to achieve a Green Star rating will be designed by the same architects and designers working on Green Star projects, so we can expect current Green Star benchmarks to become integrated into general practice. While we can be proud of our achievements in new green building, the conversation has once again shifted – and we are looking at how we green our existing buildings, as well as how we embed sustainability
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Plenty more fish in the sea...
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Mooloolah River Fisheries
… and plenty more bugs in the bay. For individuals and restaurateurs there is only one place on the Sunshine Coast to get them – Mooloolah River Fisheries in Mooloolaba. In its 10-year history, the company has taken integrated business to a whole new level for suppliers and customers alike. By Jane McCallion
While the facility was constructed according to Mooloolah River Fisheries’ specifications it was not only the company’s needs that were taken into account in its design. “We decided to build something that would not just be a good workable facility for us, but for the local industry too, the idea being that not only could we purchase the product off all the boats, we could also service the boats in the same way with moorings, fuel, packaging, oils, maintenance – anything to do with running a vessel. We bought in all those things, which weren’t in the port at all previously, to make it easy on the boats so they didn’t have to go up the road to get a lot of stock,” explains Pinzone. The company also put in an ice-making plant producing roughly 25 tonnes of ice a day, which is used to ice down the fresh product, as well as a 400 tonne freezer storage facility. When the complex was built it also included a small retail area so that people from the local area could come and buy seafood virtually fresh off the boat. Since then, it has grown to become a major retail outlet, employing 40 people full time to serve the ever growing number of people drawn in by Mooloolaba Fish Market’s reputation for fresh, quality local produce. “It’s a big part of the business, because we’re always buying fresh local product anywhere we can all along the eastern Queensland seaboard,” says Pinzone. “We get in large volumes of barramundi and snapper, we sell a lot of king prawns and Moreton Bay bugs; what’s on offer in the retail section goes right through the line of quality Queensland produce.” Indeed there are up to 20 different types of fish on sale at a time in the outlet without including crustaceans, prawns or other seafood. If people don’t feel like taking their fish back home to cook, Mooloolah River Fisheries has that covered too. For
Focus Food & Agriculture
T
he phrase ‘one-stop-shop’ has become something of a cliché – applied to such a broad range of companies offering varying degrees of complete service; it has become difficult to define what it really means. However, if there is one example of a business that truly embodies the sentiment of that saying, it is Mooloolah River Fisheries. The complex run by the company includes virtually every aspect of the seafood supply chain, from reeling the fish in at sea to serving up a fully prepared restaurant meal. Tony Pinzone, a fisherman by trade, established the fishery in June 2002. With an unsurpassed knowledge of the seafood industry and a clear head for business, he has been able to turn Mooloolaba into what it is today. “I fished in Victoria with my father and brothers since before I even left school,” he says. “Then 35 years ago, I came to Queensland and built my own prawn trawlers, which I ran until about 10 years ago. The facilities in Mooloolaba were very poor at that stage and we saw there was an opening to be able to put a one-stop-shop for the seafood and fishing industries in the port. “We decided to start looking into acquiring the block of land, which took about three years. We then drew up plans for the complex ourselves and set up the factory how we wanted and situated the marina and the big unloading wharf how we wanted.”
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Mooloolah River Fisheries
Mooloolah River Fisheries is the largest volume wholesaler of this product on the East Coast of Australia, mostly sold through our wholesale division a traditional seaside experience, there is a fish and chip shop at ground level. Alternatively, customers can opt for a sit down dining experience in the 200-seater first floor restaurant overlooking the river, from where they can see fishing industry at work. “Mooloolah River Fisheries main product division is the famous Mooloolaba King Prawn. Mooloolah River Fisheries is the largest volume wholesaler of this product on the East Coast of Australia, mostly sold through our wholesale division,” Pinzone adds. The most recent string added to the company’s bow is a large distribution point, which distributes seafood to big hotel chains, major restaurants and smaller seafood outlets along the Sunshine Coast. This aspect of the business, which is only six months old, is expected to be a major contributor to Mooloolah River Fisheries’ turnover within the 36
next 12 months. However, this diversification is also a ‘from the ashes’ story. “The tuna industry was quite big when we started the business back in 2002 and we acquired quite a few boats,” explains Pinzone. “We also had a tuna packhouse: we were unloading and preparing the tuna and packing it up to be sent over to Japan, Sydney and all over Australia. Since then, the tuna industry has virtually gone legs up and there are almost no tuna boats in Mooloolaba.” Rather than mothball the facility, the decision was taken instead to repurpose it into a distribution point. “We estimate that the distribution market on the Sunshine Coast is worth approximately A$20,000,000 and we want a share of that,” says Pinzone. “All we had to do was change the packhouse to be a distribution point instead, so we just upgraded the refrigeration in there, bought some scales, bought the trucks
and hired the staff.” Hiring the right staff has been key to successfully launching the delivery business. The company took on experienced fieldsales reps to promote this new service to potential customers around the area and quickly build up a client base. Subsequently, Mooloolah River Fisheries has been approached by a number of other experienced sales people who are excited by the direction the business is taking. Considering the distribution point was a completely new business area for the company, the level of investment required to get it up and running was remarkably low – only A$250,000. “Because we already had the processing plant and we own the complex, so we’re not paying rent or anything, the cost of doing this was cheaper than it would otherwise have been,” explains Pinzone. “And given what we think it will produce in 12-18 months, we feel it was a very reasonable expenditure.” This adaptability and capacity to see new trends and opportunities will doubtless be the key to Mooloolah River Fisheries’ future success. The fishing industry in the Sunshine Coast area is coming under increasing pressure from environmental restrictions, such as green zones, which prohibit commercial fishing. “There’s a lot of talk at the moment, especially about closing off the Coral Sea completely. However, until things actually start happening, it’s hard to see which way to go,” Pinzone says. “But we have changed direction two or three before in the past ten years and we have always come through, so we know we can do it again.”
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Get your business seen For more information please contact Nicholas Davies
Sales & Research Manager Tel: 02 8332 7512 nicholas@tntdownunder.com www.australasiaoutlook.com
Making
great things possible
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DB Schenker
With more than 2,000 locations and 90,000 staff globally, DB Schenker is one of the world’s largest integrated logistic providers. By Ian Armitage
Tank car unit train with electric locomotive class 152
Focus Logistics
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ogistics provider DB Schenker needs little introduction. It is one of the world’s leading providers of integrated logistics services, with more than 2,000 locations and 90,000 staff globally. The company boasts an excellent network in Australia and the wider Asia-Pacific region. “Ours is a comprehensive solution,” DB Schenker Australia’s Michael Armstead, head of national projects, told an Australasia Outlook researcher. The company was established in Sydney in 1962 and provides a complete range of international air and sea freight forwarding together with integrated logistics services from its premises in Sydney, Melbourne, Adelaide, Brisbane, Perth and a subsidiary office in Auckland. Its experts provide “complete tailor-made solutions” while its international teams of specialists integrate the “Group’s individual service
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DB Schenker
modules to create complex addedvalue chains that ensure a reliable flow of materials and information - in both the old and the new economies,” its website says. “DB Schenker provides its customers with all the main services from a single source - a business principle that has proved its worth ever since the company was founded by Gottfried Schenker in Vienna more than 130 years ago,” it adds. DB Schenker is a part of the Transport and Logistics Division of
“We provide complex transport and logistics services in the units Rail and Logistics and all that from a single source”
With a fleet of around 150 ships and a capacity of almost 680,000 TEU, Hapag-Lloyd is currently the fourth-largest container shipping company in the world. Our home port is Hamburg, Germany; and the world is our oyster. Hapag-Lloyd is represented in 114 countries with a total of 300 offices, servicing customers as business partners, with local know-how. The highest standards of customer service, expertise and global availability wherever customers are located – these are the advantages that Hapag-Lloyd and DB Schenker have been, and continue to offer customers. We transport all goods reliably and punctually across the world’s oceans, connecting over 430 ports on all continents – whether standard containers, reefers, dangerous loads or out-of-gauge cargoes. This is an international business that can only work with good partnerships and joint achievements.
Eco Plus from DB Schenker Rail
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Modern logistics never sleeps. This is why we are always on the move for you, around the clock, around the globe. In 114 countries you can rely on Hapag-Lloyd’s top service and staff expertise, whether for standard shipments, temperature-sensitive products, or even special and heavy cargoes.
DB Schenker
Deutsche Bahn AG. Like most businesses, it is enjoying the knock-on effects of the minerals boom. And, as one of Australia’s leading integrated transport and logistics service providers, its services are in demand. “We provide complex transport and logistics services in the units Rail and Logistics and all that from a single source,” Armstead told our researcher. “The oil and gas industry is an important one for us, strategically, and we utilise a brand new state-of-the-art facility in Perth to handle the logistics requirements of the oil and gas industry in Western Australia.” DB Schenker can manage all logistics requirements, no matter
Eagle Maritime Eagle Maritime Consultants, Inc. assists in the transportation of project materials worldwide. From manufacturer to destination EMCI acts as liaison between all the parties involved ensuring that all materials are shipped to reach the field in a timely and secure manner. The primary goal of our Consultants attending the shipment is the safest, most cost effective, process for achieving a zero defect outturn at destination. We do not limit our efforts to a single area of concern but will monitor all aspects of a shipment including: • Export packing • Rail or road transportation • Receiving and storage of shipment • Loading, stowage and securing of the cargo • Transporting carrier • Discharge • Oncarriage to site • Final placement
“All Australian and New Zealand facilities are ISO 14001 certified and the Environmental Management System sets specific targets for each site”
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EagleMaritime c o n s u l t a n t s
i n c
Australia ~ USA ~ Middle East www.eaglemaritime.com
CORPORATE OFFICE: 1600 Space Park Dr. Houston, Texas 77058 Tel: (281) 333-9880 (24 Hrs) Fax: (281) 333-9885 Email:
LOUISIANA OFFICE: 2323 Bainbridge Street, Ste. 113 Kenner, Louisiana 70062 Tel: (504) 466-9110 (24 Hrs) Fax: (504) 466-8780 Email:
VIRGINIA OFFICE: Pembroke One, Ste. 208 281 Independence Boulevard Virginia Beach, Virginia 23462 Tel: (757) 557-0500 (24 Hrs) Fax: (757) 557-0501 Email:
BAHRAIN OFFICE: Eagle Maritime Consultants Middle East WLL Ste. 23, Bldg 471, Road 3513, Block 335, UM AL HASSAM Kingdom of Bahrain Mailing Address: P.O. Box 75948, Juffair, Kingdom of Bahrain Tel: (973) 17 722940 Email:
houston@eaglemaritime.com
virginia@eaglemaritime.com
neworleans@eaglemaritime.com
bahrain@eaglemaritime.com
Eagle Maritime Consultants, Inc. has been involved in the marine industry since 1988, serving an international clientele in various aspects of the shipping trade. We traverse the globe for the loading and discharge of over dimensional cargo for the petrochemical, heavy engineering and power industry. We offer services in the areas of: engineering, naval architecture, port captaincy and warranty surveys.
QLD OFFICE: Eagle Maritime Consultants Inc. #16 Building 1 747 Lytton Road, Murarrie, QLD 4172, Australia Tel: +61(0)7 3117 3716 Fax: +61(0)7 3117 3797
WA OFFICE: Eagle Maritime Consultants Inc. PO Box 375, Bull Creek, WA 5149, Australia Tel: +61 (450) 510-598 Email: australia@eaglemaritime.com
how remote or difficult the location, from conception to completion. “The oil and gas projects teams consist of independent engineers, surveyors and project experts who work closely with you to ensure the professional and safe movement of project cargo to your exact specifications,” its website says. “We are in a strong position,” Armstead said. Of course, DB Schenker Australia is famed for its green credentials and focus on sustainability. Today, sustainability is a business imperative and sustainable practices allow businesses to make and save money. Last year, the firm in Australia won the “Best Green Initiative 2011” Award from Logistics & Material’s Handling Magazine. The magazine commended DB Schenker in Australia for “recognising its responsibility” by implementing a number of initiatives to provide green logistics services to its customers, namely the Eco Solutions suite launched in May 2011. Eco Solutions helps customers to reduce their CO2 footprint across all modes of transport. 43
DB Schenker
Evolution Commercial Evolution Commercial are well placed both location wise and also skills wise to support companies like DB Shenker in the challenging world of the Offshore industry in Western Australia. We continue to get more and more work from companies like DB Shenker, because we have the marine experience, the right team, the qualifications and a can do attitude. Do it once and do it right!
“All Australian and New Zealand facilities are ISO 14001 certified and the Environmental Management System sets specific targets for each site to reduce energy and water consumption, implement a sound waste management and handling system, create efficiencies in truck movements or where possible even shifting consignments completely from road to rail freight,” the company’s website says. “Schenker Australia Pty Ltd also participates in the NSW Government programme “Sustainability Advantage” to actively minimise its footprint and implement resource efficient solutions in its offices and warehouses.” DB Schenker’s green terminal office fit-out in Melbourne was awarded with a 4 star green star rating, and the site’s waste management and recycling 44
Evolution Commercial offers companies like DB Shenker years of experience in marine servicing and boat building that is normally only found in much larger companies. Operating from a prime waterfront location in Henderson Western Australia, Evolution Commercial has a range of services including: - Marine qualified steel shipwrights, all classed to ABS, GL and DNV - Aluminum fabrication and repair - New vessel design and construction in steel and aluminum - Load out facilities and a team that can offer mobilization or demobilization - Shipwright work - GRP work - SS work - Engineering maintenance and repair Companies like DB Shenker use Evolution Commercial because we are a quality company with a strict focus on safety and a commitment to quality and working within the time constraints often experience by companies in the offshore industry. Please contact Mark Stothard on +61 418 920 271 to discussion solutions to any of your new building or servicing requirements for the future. Evolution Commercial contact details: Address: 33 Clarence Beach Road, Henderson Western Australia, 6166 Web: www.evolutioncommercial.com.au Email: mark@northstarcruises.com.au Phone: +61 418 920 271
programme has reduced waste to landfill significantly. The facility boasts a 450,000litre rainwater tank for irrigation and toilets and solar panels. In NSW, DB Schenker has strategically positioned itself opposite the intermodal hub in Yennora and containers can be delivered from Port Botany directly via rail freight to the logistics centre. “This has reduced the number of trucks operated by Schenker Australia Pty Ltd on Sydney’s already congested roads,” the company says. The commitment to sustainability extends far beyond the environment, however. “Motivated and passionate people are the key to long-term success,” the company says. “Having the best and most qualified people in the industry is an integral part of our overall strategy and sustainability programme and our customers
“Our Learning and Development Programme encourages our people to strive for success on a personal and professional level every day”
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db schenker
Orient Project After 21 years of flying the Coli flag the company re-branded 31st December 2011 and is now known as Orient Project Shipping (S) Pte Ltd. This is a reflection of an earlier adjustment to shareholding which was effected mid-year and which now sees the company fully owned in Singapore by the existing management. However, this is the extent of the change, and the company continues to offer a boutique project and heavy lift ship broking platform which includes the agency of specialist Carrier Biglift (www.biglift.com) in Asean - viz: Singapore, Indonesia, Malaysia, Thailand, Philippines, Vietnam, Cambodia, Laos and Myanmar – although Project Orient’s reach and remit is global.
deserve best in class service today and tomorrow,” CEO for Australia and New Zealand Ron Koehler said in a recent release. “Delivering high quality service relates directly to the enthusiasm and motivation of our people who constantly exceed personal and business targets.” Flexible working arrangements such as working from home, job-sharing, parttime work options and ‘me’ days create the flexibility to retain our talent, he said. “Our Learning and Development Programme encourages our people to strive for success on a personal and professional level every day,” Koehler explained. “We have taken the right steps with our tailor-made training programmes. Complementing 46
our own programmes, we use a variety of government funded trainings and courses. Some of these courses were integrated into our daily business activities to combine theory and practical work and therefore make them more relevant to our staff which had a great affect on the learning outcomes.” Koehler is convinced that retaining and up-skilling the workforce is the right strategy for DB Schenker and the best motivator for people to live their dream of a fulfilling career. He’s the living proof for this having started his career with the company more than 30 years ago as a trainee in freight forwarding. For more information visit www.dbschenker.com.au
db schenker
Russell Transport Complete logistics solution The family-operated business supplies a dedicated and purpose-built fleet complete with operational support, to major manufacturers, distributors, freight forwarders and customs agents in and around South-east Queensland. Over the last three decades, Russell Transport has expanded its service offering to include heavy haulage, project management, specialised and general transport, crane hire and warehousing. In 2009, the company opened a new “Approved place for Quarantine” depot to service the Port of Brisbane precinct. More recently this depot has become a customs approved bonded yard.
Global logistics expertise with a strong rail foundation In financial year 2011, DB Schenker generated revenues of around 19.8 billion euros, approximately 52 percent of the Deutsche Bahn (DB) Group’s revenues. Through its Transportation and Logistics Division, DB holds top positions in global air and ocean freight and has Europe’s densest land transport network and the rail expertise of Europe’s largest rail freight company. With around 2,000 locations in all of the world’s most important economic regions, DB Schenker has a global network geared toward customer service, quality and sustainability. This success is owed primarily to DB Schenker’s 94,600 employees, all of whom place customer satisfaction and quality at the centre of their work. DB Schenker stands for performance, service and safety, regardless of the complexity or extent of logistics tasks and requirements.
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The group’s Heavy Haulage operations and Crane company (Metro-Lift Cranes) also operate at the Lytton site, which means customer requirements, ranging from transport and storage to lifting and customs/quarantine, can all be serviced at one location. This coupled with a commitment to quality, compliance and safety, cements Russell Transport’s focus on delivering a custom-built solution to a client’s unique requirements. Information: Phone: (07) 3131 0131 Fax: (07) 3131 0133 Email: info@russelltpt.com.au Web: www.russelltpt.com.au
For Your Total Transport Solutions Russell Transport is a specialist provider of logistics solutions based in South East Queensland. With purpose build facilities to service the Port of Brisbane, Queensland and Australia, we are uniquely positioned to provide a Total Logistical Solution for ALL YOUR logistics needs. We can help with: TERMINAL SERVICES: Customs License 77G Depot, 79 Warehouse, Australian Quarantine Approved Premises: Wash, Fumigation, storage area, Container Pack / Unpack HEAVY HAULAGE: Low Loaders, Floats, Steerable Platforms, Jinkers, Very Low Height Carriers. CRANES AND LIFTING: Pick and Carry Cranes, Hydraulic and ALL Terrain Cranes. 10-220 Tonne Capacity
www.russelltpt.com.au email: info@russelltpt.com.au Ph: (07) 3131 0131 Fax: (07) 3131 0133
GENERAL TRANSPORT: Single to Road Train combinations, O/Dimensional loads and Containers – Flat Racks - ISO tanks, Dangerous Goods, wharf access. CONTRACT DISTRIBUTION: Customised solutions to reduce costs, improved distribution networks and reduce liability. WAREHOUSING AND STORAGE: Quality Hardstand (15,000sqm) and Warehouse Storage (10,000sqm). Make 1 phone call for all your transport, lifting, washing and storage needs.
Pilz Australia
Better
safe thansorry P
ilz Australia is a supplier of state– of-the-art, safe automation systems. It is a leading, innovative, global automation technology company. Customers receive onestop solutions for both safe and standard automation and Pilz provides a wide range of products and services, from control, monitoring and sensor technology all the way through to complete safety solutions that include design, implementation and validation. Automation solutions with motion control are also available. It is quite the offering! “We are a leading, innovative automation technology company,” says Scott Moffat, managing director of Pilz’s Australian and New Zealand subsidiaries.
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“We are global experts in the world of safety of human, machine and the environment and we offer customeroriented solutions for all industries, including the manufacturing, automotive, food and beverage and mining industries.” Pilz Australia is a subsidiary of Germany-based Pilz GmbH, Europe’s largest and most respected manufacturer of safety automation equipment. Its proximity to customers is one of many unique selling points. Pilz instils confidence through personal consultation, high flexibility and reliable service, worldwide, around the clock. “We have customer-oriented solutions for all industries and want all businesses to
By Ian Armitage
work safely and free from injury,” Moffat says. “Pilz offers and manufactures safety solutions for machinery and plant safety and has become a one-stop safety shop.” Moffat was appointed managing director of Pilz’s Australian and New Zealand subsidiaries in July 2011, replacing Frank Schrever. His goal is to contribute to the “ongoing growth” of the company and allow the business to “fulfil its market potential in both Australia and New Zealand.” “I have over 20 years experience and extensive knowledge in the automation, energy, mineral processing and petrochemical industries,” he says. “I was attracted to Pilz as it is an outstanding international company with a strong culture
Focus Manufacturing
Pilz is a global leader in safety automation. Australasia Outlook talks to Australia and New Zealand managing director Scott Moffat.
and a great local team. There is a real passion here, in the people and in the brand. We want to deliver better safety outcomes for our clients. The company is exceptionally well placed to embrace the new revenue growth opportunities ahead.” He sees growth for the business in Australia’s mining industry, amongst others. “We are a leader in the region, yes. We would consider ourselves market leaders. Actually, we would consider ourselves market leaders globally and Pilz has a fantastic reputation in the market place for providing safe solutions and safe products,” Moffat says. “What we have here in Australia is a fantastic opportunity – it is a great company and 51
Pilz Australia
a great brand and it has great growth potential. Australia is probably a little bit untapped with regards to what we do and where the mindset is with regards to safety. Europe is still ahead in that respect and I think logically, as we improve our standards and the way we operate, we will see growth. “Mainly, for us, it is about mining and oil and gas. We are very strong in our heartland industries – food and beverage, automotive, and manufacturing - but we see a lot of growth in
the resources boom. The size of projects there is astronomical. They’re looking for turnkey solutions, not just products and we are changing the way we deliver our products to market as a result.” Pilz has offices in Melbourne, Sydney, Brisbane and Auckland. The Melbourne head office was specifically developed to build on Pilz’s outstanding service and increasing customer base, Moffat says, while the Sydney office caters for the NSW market and Brisbane supports Queensland.
“We would consider ourselves market leaders globally and Pilz has a fantastic reputation in the market place for providing safe solutions and safe products”
INTERLEASE With more than 30 years of providing specialist commercial equipment financial solutions, Interlease understands that innovation is always key. Businesses not only come in all shapes and sizes, but every business has different needs when it comes to financing their operations including the purchase of new plant and equipment. At Interlease, we pride ourselves on being able to both devise and deliver innovative financial solutions that are specifically tailored to the needs of every business we work with. Our long-standing working partnership with Pilz Australia demonstrates our commitment to innovation. As well as providing customised financial solutions to Pilz to facilitate its own operations, Interlease has provided extensive support to Pilz’s customer base over time to assist them in upgrading their manufacturing plant and equipment, technology and systems, in a costeffective manner. Interlease is an independent financier and works with over 30 accredited institutions, allowing us to provide many options including operating lease and rental, finance lease, hire purchase, chattel mortgage and novated leases. Contact us today on 1300 859 429, or go to www.interlease.com.au
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AUTOMATE YOUR FINANCE PROCESS Experts in structuring equipment finance • • • • • •
Experts in structuring equipment finance to suit client needs Formed in 1974 Interlease is fully independent of our financiers Australian owned and operated Finance Lease, Operating Lease/Rental, Hire Purchase Trade Finance facilities, letters of credit, construction/escrow facilities
Melbourne | Sydney | Brisbane Call Ken Richards on 0408 842 678 1300 859 429 | www.interlease.com.au
Pilz Australia
“One of the things we are ramping up is the provision of services,” he says. “We are actively recruiting services engineers and what we call certified machine safety experts (CMSE) in all locations to meet the demand for services and engineering work locally. Finding skilled workers, however, is a challenge. We have to find people with a passion for safety and train them up, which is a big commitment on our behalf. But it is something we believe in. For example, we have a number of people going over to China next month to conduct some TUV approved training courses and become certified experts.” The upturn in mining couldn’t come at a better time for Pilz. Australia’s manufacturing industry is, in Moffat’s words, “doing it tough.” The manufacturing sector declined slightly in March after expanding in December, January and February. “Manufacturing is clearly having trouble building momentum towards recovery,” he says. “The relentless pressure from the dollar and weak domestic demand continues to inhibit manufacturing performance. I would say too that many of the skilled resources are being sucked away into the resources boom and one would also say there are a variety of uncertainties around political and economic reform – we are talking things like carbon tax and Fair Work Australia. We are seeing manufacturing doing it tough. Ironically for the business, it is not too bad in the manufacturing because we do get a lot of work when plants and companies downsize. We are certainly not seeing the capital investment in those industries in Australia, however. Noone 54
“In the past year one thing we have found a huge demand for is what we call machine safety training. The national harmonisation of health and safety laws in Australia has driven a large demand for safety training for entire workforces, from the operator on the plant floor to the executives” “In the past year one thing we have found a huge demand for is what we call machine safety training. The national harmonisation of health and safety laws in Australia has driven a large demand for safety training for entire workforces, from the operator on the plant floor to the executives. There is a large demand for that.” Looking to the future, Moffat wants to stay on the current path. “We want to grow and offer turnkey solutions. We want to continue to grow in the mining and oil and gas industries as well as continue to be the market leader in the food and beverage, automotive and manufacturing industries. We need to actively pursue education in the market though and help the Australian consumer better understand our suite of services. There is no market demand unless industry recognises the need for what we do! Some of that need might be driven by legislation, but a proactive safety culture, which creates safe working environments, will drive it too.” Expertise in machine safety means Pilz Australia understands your business issues and how to implement safety solutions.
Focus Manufacturing
is building new plants. Noone is planning significant amounts of capital. Across the board we are seeing it very tough with companies looking to invest in locations like China, which has long offered some of the world’s lowest manufacturing costs, or other low-cost areas for manufacturing. There is so-called ‘off shoring’. Longer term that will be a problem for the country.” The high value of the Australian dollar and falling exports are a huge issue for many of Australia’s manufactures – just look at what is happening at Toyota. “When you look at countries like Germany, they have worked to get themselves competitive in a global economy,” Moffat explains. “The German way is so brutally efficient, productive and lean with how they produce that it is possible to be competitive. In Australia the penny hasn’t really dropped in that respect. Actually, I think the penny has dropped, but the economic framework is not currently in place to assist companies in going down that path.
To learn how it could help improve your safety, efficiency and even automate certain processes visit www.pilz.com.au. 55
Industry Capability Network
Matchmaker
extraordinaire By Derek Lark, Executive Director ICNL
I
ndustry Capability Network (ICN) is a business network that introduces Australian and New Zealand companies to projects large and small. For more than 28 years ICN has worked as an innovative industry matchmaker, offering a new business source to suppliers and a sophisticated search service to project managers. ICN’s role is to support Australian industry by finding the suppliers and service providers who are best equipped to meet the requirements of hundreds of projects across Australia and New Zealand.
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Everyday ICN consultants across Australian and New Zealand work with local suppliers and project managers to help save valuable time and money in the procurement process. As well as having a team of 109 technical consultants, ICN also has eight sector specialists that are based around Australia and cover specific major industry groups. These specialists work with government, industry and local suppliers to help maximise Australian and New Zealand content across key sectors such as clean technologies, health, national broadband network, oil and gas, rail, steel, mining and water.
Since formation in 1984, ICN has grown nationally to include 30 offices around Australian and New Zealand, helped local SMEs win more than $16 billion worth of contracts and created over 180,000 jobs.
ICN Gateway ICN Gateway sits at the heart of the organisation. This powerful online tool contains around A$120 billion worth of projects and more than 50,000 suppliers. It allows suppliers to browse and register their interest in new business and it helps project managers to manage the supplier registration
With an unmatched knowledge of local industry capabilities, ICN can quickly identify competitive Australian and New Zealand suppliers to meet a buyer or project manager’s requirements, saving them time and money.
The Gorgon Project
Working with suppliers and buyers Everyday ICN consultants receive enquiries from purchasers and project managers looking for local suppliers and service providers. By registering on ICN Gateway and making themselves known to ICN, local companies have been able to win contracts and grow their businesses.
For more information go to: www.icn.org.au or call your local ICN office on 1300 961 139
Focus Manufacturing
process. It is free to register on ICN Gateway and the more information that businesses supply the more visible they will become when there is a demand for their product or service.
The Chevron-operated Gorgon Project is Australia’s largest single resource project. Over A$20 billion in construction contracts are to be secured by Australian firms. ICN is helping over 1,000 firms bid for a share. The Gorgon Project will pump natural gas across 130km of ocean. Carrying much of that gas will be the HDPE pipes, two metres in diameter, purpose built by a small Western Australian firm, Kingston Bridge Engineering. The Project needed a local HDPE supplier who was willing to invest in technology. Each component had to meet strict requirements in its coatings, treatments and packing, to meet the environmental conditions for the project. To help with the challenge, Chevron turned to ICN’s industry knowledge and networks. Through ICN and its usual tender processes, Chevron was introduced to Kingston Bridge Engineering. To win its contracts, Kingston Bridge Engineering had to invest in a new plant to make the world’s largest HDPE pipes. Kingston Bridge Engineering is now one of just two firms in the world that can make the two metre pipes. That investment has paid off in many ways. As well as A$8.5 million in Gorgon contracts, Kingston Bridge Engineering has also earned an export contract to Hong Kong and another for a US-led project in Australia.
The success has been more than financial. The Gorgon Project allowed Kingston Bridge Engineering to retain experienced staff during the global financial crisis, while other businesses were being forced to cut back. In all, ICN has helped with Gorgon enquiries to just over 1,000 firms and so far 61 firms have been successful with contracts worth, collectively, over A$1 billion. The Gorgon challenge brought the best out of the ICN team, led by Linus O’Brien from ICN’s WA office. “Gorgon has been the biggest project we’ve worked on,” says Linus, “and the exciting thing about it is the number of Australian firms we’ve been able to bring online.” ICN is now setting itself for many new very large-scale projects: Chevron’s Gorgon and Wheatstone projects, Woodside’s Browse LNG project, INPEX’s A$25 billion Ichthys LNG project, BHP Billiton’s Olympic Dam mine and enormous LNG projects in the Gladstone area of Queensland. The investment and construction phases of Australia’s resource boom are expected to continue well into the 2020s. The opportunities for Australian engineering and other supply firms are unprecedented. ICN will continue to support those firms who are looking to expand their own horizons. ICN is Australia and New Zealand’s innovative industry matchmaker. If you’re a major project developer, ICN can put you in contact with the best suppliers. If you’re a supplier we will connect you with the best projects for your business.
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Getting the job
done Australasia Outlook profiles Bisley Workwear, an Australian icon for hardworking tradies. By Ian Armitage
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Bisley Workwear
T
Focus Mining
“It has been phenomenal – phenomenal growth, expansion and profits. We are Australia’s fastest growing work wear brand and we are that because of the good old fashioned values we stand by – quality, value for money and exceptional services. Our trademark is a boar, which symbolises the strong resilent nature of our products”
he past year has been a very good one for Bisley Workwear, which, with a heritage of over 60 years, is one of Australia’s leading and most trusted suppliers of work wear, safety wear, protective wear and casual wear, for both men and women. It really has gone from strength to strength, much to the delight of parent company Gazal, thanks to the launch of new protective fabrics programmes, the expansion of product lines, and an improved in-stock position. “We have long been regarded as one of Australia’s most trustworthy solid and honest brands,” says national sales manager Ramy Benjamin, who says the business “has been performing brilliantly”. “Last year we had a record year,” he explains. “We are tracking upwards.” Bisley had a record sales month in February, Mr Benjamin adds. “It has been phenomenal – phenomenal growth, expansion and profits. We are Australia’s fastest growing work wear brand and we are that because of the good old fashioned values we stand by – quality, value for money and exceptional services. Our trademark is a boar, which symbolises the strong resilent nature of our products.” Bisley Workwear, named after a rifle shooting event and the village of Bisley in the UK, today encompasses a comprehensive range. It’s the competitive pricing, exceptional quality and accessibility of Bisley that sets it apart from the competition, Benjamin says. It is, as he says, Australia’s fastest growing work wear brand. “We’ve a superb reputation; it is second to none. A few words that customers use to describe us come to mind: fun, great company, easy to deal with, relaxed, and always there.” Bisley supplies industrial work wear to many industries, including mining and oil and gas. They are lucrative industries of course and have enjoyed boom conditions globally for the best part of a decade. Bisley has become the world leader in innovative protective wear including insect protection, fire resistant, anti-bacertical, anti-static and waterproof clothing - or combinations of each.
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Bisley is a name you can’t wear out enough. Just ask BOC...
At BOC, we understand the knowledge, expertise and process required to ensure your workers are not only safe, but that they are wearing work appropriate clothing. 60
That’s why we’re proud to have become the largest Australian distributor of Bisley workwear for almost 10 years. Bisley is one of the fastest growing workwear brands in the market because of its competitive pricing and exceptional quality.
A Member of The Linde Group
Visit your local BOC Gas & GearTM store to view our comprehensive range of Bisley workwear. Don’t forget that we can assist with all your gas, welding equipment and safety needs too.
Riverside Corporate Park, 10 Julius Avenue, North Ryde, NSW 2113 Australia contact@boc.com BOC is a trading name of BOC Limited, a Member of The Linde Group. © BOC Limited 2012. Image of Scott Cam used with the kind permission of Bisley.
|MA|ABO|0512
To find out more, please call 131 262 or visit www.boc.com.au
BOC Limited
Bisley Workwear
“Our insect product is one of only a handful of its type in the world – there are two dominant global manufacturers, our product and the other is made by an American firm. Insects can transmit some pretty nasty diseases, so, to guard people against them, we have developed insect protection clothing. It is like a suit of armour with a 100 percent knock-down rate. It is harmless to those that wear it and the environment.” All garments comply with global health and safety standards. “We are an approved supplier to ExxonMobil and their LNG project in Papua New Guinea; we supply our insect protection clothing,” says Benjamin. “We are about building a clothing safety solution in any risk environment and have been enjoying success off the back of the minerals boom in particular. We now multi-layer our garments and we have gone into new markets like Africa, Asia and South Africa.” Innovation he says is imperative. “We have been innovative in what we’ve done to become solutions providers for some of the largest companies in the world, providing them with solutions for their sites and particular needs. Importantly, we have delivered solutions that meet those needs and do lots that others don’t. We have become extremely creative, with items like our new ColdBlack product, which blocks out harmful UV rays and actually reduces heat stress on workers.” 62
Bisley is an innovative, customer focused company, still small enough to provide prompt and personal attention, yet with solid producer support to meet the needs of the largest industrial consumers. “Our emphasis is on technically superior products, supported by technically proficient staff and first class service,” says Benjamin. The secret to Bisley’s success is that it has been able to do what most business try and fail: adapt. Adapt to an ever changing commercial, social and technological environment. “That’s why innovation is so important. Innovation is needed to generate something that almost every business needs to survive: attention.” Benjamin has a point. It has seen Bisley grow when others have stalled. “With minerals boom the way it is, we thought it was worth taking a few risks – and it has paid off in terms of how our business has performed,” he says. “Research and development is a key element of our business and helps us stay ahead. “Our business customers lead their own fields and they require excellence from their suppliers in every aspect of their business. R&D is vital in that respect.” Bisley is wholly owned by Gazal Corporation, a publically listed company in Australia. Its future is bright. “We are a small group of people that are absolutely passionate about what we do,” says Benjamin. “We have a motto in our business: failing to plan is planning to fail. Because of
that we are excited by the future, absolutely. We have a clear market strategy and execution plan and are expanding all the time, especially in terms of our geographic reach, entering further into Africa, Asia and North and South America. “Our customer is number one and we take their needs most seriously. We listen to what they need and then try to find a solution. We are also proactive in finding new products and new ways of doing things.” If Mr Benjamin had three wishes, he says they would be simple: “Three wishes? Wow. The first one would be to keep everyone that works with us, and their families, safe and away from harm because it is the people that make our business what it is. The second would be for a crystal ball. And the third one would be for a spare crystal ball! “What is the secret to our success? We have adapted and changed with the times. But the majority of our success has come through management support, our people and their hard working nature. We are all passionate about the business. “Also, the Gazal family, which owns us, treats us as a family and we treat each other as a family. “Those are the keys: the passion that runs through our veins and makes the business what it is and the family culture and support from Gazal.” To find learn more about Bisley Workwear and find a solution for your business visit www.bisleyworkwear.com.au.
rides the Drilling contractor
boom
F
or the best part of the last decade, mineral exploration drilling contractors have enjoyed boom conditions in many parts of the world. Companies working on both regional and international scale, and especially those that used their own proprietary
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equipment, were the main beneficiaries. Nitro Drilling is one of them. From one rig in 2002, the firm has expanded to employ more than 200 people with 22 state-of-the-art multi-purpose exploration rigs, operating in Australia. “Our growth has been impressive. In the last 12
months we have put on 12 new rigs and we putting another 10 on this year,” says Dan Rogers the firm’s general manager. Nitro’s head office is located on Queensland’s Sunshine Coast and the company operates in the coal-rich Bowen Basin, with a six acre service and maintenance yard in Dysart
Nitro Drilling
From one rig in 2002, Nitro Drilling has expanded to employ more than 200 people with 22 state-of-the-art multi-purpose exploration rigs. By Ian Armitage
Focus Mining 65
Nitro Drilling
supporting major clients like BHP Billiton Mitsubishi Alliance, Anglo American, Rio Tinto and Peabody Energy. “We are a dynamic Australian business with a proven track record of excellence in the field of coal exploration drilling,” says Rogers. “We’ve a modern fleet of multi-purpose exploration rigs.” Nitro is in a good position. “We are. We’ve a proven record, building and designing specific equipment to suit customer scope of work and exploration needs,” Rogers says. Safety, as you’d imagine, is vital. “We have a strong focus on management driven workplace health and safety initiatives and that has really been the core of the company’s working ethos,” he adds. Nitro has aligned itself with the health and safety expectations of a larger 66
“We’ve a strong safety culture and we operate up-to-date, modern, wellmaintained, equipment. We have modern functional safety systems. And we have competent operators”
organisation, employing Drilling Supervisors, Workplace Health and Safety offers and placing emphasis on ongoing training and career development. All employees have a full safety induction and certification requirements specific to their positions. “Safety is a major focus,” Rogers explains. “We’ve a strong safety culture and we operate up-to-date, modern, well-maintained, equipment. We have modern functional safety systems. And we have competent operators.” Next up, Nitro is pursuing opportunities within the burgeoning coal seam gas industry. “We’ll have a look at it,” says Rogers. There are a number of energy companies, ranging from major international players to
Mercedes-Benz Commercial Vehicles Rocklea
is proud suppliers of equipment to Nitro Drilling with an association that started in 2002.
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Nitro Drilling
“It is a very good time to be in that industry. We are specialised in coal exploration and obviously subsequent to that we see opportunities in coal seam gas. We get enquiries almost every day from people looking for us to put some rigs into that and it is something we are looking at currently” juniors, which are pursuing opportunities with the coal seam gas sector in Queensland and New South Wales. And, coal seam gas requires a lot of drilling. The three largest companies in the sector have estimated they need to drill 20,000 wells by 2016. That gives you some idea of the magnitude of the opportunity. “It will be something new for us, the gas industry. But it is a significant opportunity,” Rogers says. “It is a very good time to be in that industry. We are specialised in coal exploration and obviously subsequent to that we see opportunities in coal seam gas. We get enquiries almost every day from people looking for us to put some rigs into that and it is something we are looking at currently.” Although there are ample opportunities, along too come
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challenges. The main one being skills. “We have been looking at alternative sourcing strategies, upskilling less experienced or less specialised workers, and looking into international sourcing options,” says Rogers. “We are one of a number of companies in the industry gearing up for more growth, and the biggest fear is not being able to find the workers needed.” Nitro Drilling is a member of the Australian Drilling Industry Association (ADIA) and National Heavy Vehicle Accreditation Scheme (NHVAS). The company has always been a strong financial supporter of community organisations such as surf lifesaving and various local charities. To learn more visit www.nitrodrilling.com.
Sandvik Mining Sandvik Exploration works extensively with many Australian drilling contractors to jointly develop both new equipment and drilling tools for the exploration industry. Through close relationships and continual field testing Sandvik helps contractors achieve world class productivity and safety. Over the years close collaborations on new initiatives from customers have taken place. The initiatives have been developed, incorporated in the design and proven in field. By listening and working together with end users Sandvik can meet the different demands in the field. Going forward, Sandvik will continue to focus on being the key supplier and Exploration partner of choice.
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We need skills (and workers)! Employers are facing some significant challenges when it comes to addressing the issue of labour supply, says resource industry employer group, AMMA. Edited by Ian Armitage
W
ith the so-called “Resources Boom Mark II” currently dominating investment in the Australian economy, resource industry employers are facing some significant challenges when it comes to addressing the issue of labour supply. Resource industry employer group AMMA believes the shortages currently being experienced - as well as those forecast to occur - are further exacerbated by the need to attract workers to the resource industry, quite often with the very same or similar skillsets needed to address other areas of structural weakness or significant projects across the country. AMMA Chief Executive, Steve Knott, says the situation is something akin to a “double-whammy” as between 2010 and 2012, more than A$70 billion worth of major non-resource infrastructure projects will get the go-ahead including rail, road, port, hospitals and sporting arenas. “We have significant infrastructure gaps in the logistical supply chain - from mine site to export market - with ports, rail lines and road infrastructure requiring a significant investment in order to upgrade
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their capacity to meet the impacts of the international demand for Australian resources. “The skilled and professional workers often needed to develop these strategic assets are in fact in the very same talent pool required right now by resource industry employers,” Mr Knott said. Mr Knott also said in order to understand the extent of the labour supply problem, as well as to be in a position to propose solutions, AMMA had systematically tracked its members experiences. “Our members reported widespread skills shortages across a range of professions and technical trades prior to the GFC taking effect in 2008, after which there was a significant drop in demand for most of 2009. “However, from late 2009 to mid-2010, there have been strong signs of recovery in the demand for skills - and shortages have once again become widespread particularly in the professional groups including engineering and construction,” Mr Knott said. To put the challenge facing Australian resource industry employers into perspective, in the six years from 2005 to 2011, the size of the resource
AMMA
}} 68.8 percent said they were experiencing a shortage of tradespeople; }} 12.5 percent said they were experiencing a shortage of graduates; and }} 6.3 percent said they were experiencing a shortage of unskilled workers.
Focus Mining
industry workforce has effectively doubled to 213,200 people. By 2015, the industry is expected to employ at least 250,000 people directly - and up to an extra 750,000 people indirectly. This means the resource industry will need to find at least a further 40,000 people in addition to those people already working in the sector in the next four years, a feat made even more challenging when one considers Australia already has a low and steady national unemployment rate of 4.9 percent. Mr Knott says despite arguments to the contrary by some parts of the union movement, the skills shortage is a reality - with AMMA members saying its effects ranged from ‘somewhat detrimental’ to ‘making it extremely difficult to do business effectively’. A survey of AMMA members in November 2010 found: }} 93.8 percent were experiencing a shortage of professionals [with 81.3% of these identifying difficulties in filling engineering roles];
Adding to the challenge, Mr Knott argues Australia currently has an extremely mobile labour force, and a very low rate apprenticeship completion rate. With up to 60 percent of employed males actively looking for other jobs, careers in the resource industry typically last from one to five years, with an annual turnover rate in many of AMMA’s member companies of around 15 percent. “Our sector is not immune from having its own highly trained and qualified workers, often those recruited from overseas at significant expense, moving on to other industries and employers once they gain experience,” Mr Knott said. He said other industries were sometimes more attractive than the mining industry in the long-term because of lifestyle and location preferences. However, generous wages made the mining industry attractive 71
AMMA
in the short to medium-term. As of February 2011, full-time adult ordinary time earnings in the mining industry were A$2,098.90 a week (A$109,142.80 a year) compared to A$1,291.30 a week (A$67,147.60 a year) across all other industries. The completion rates for trades apprenticeships in Australia are also quite low across the board. In 2008, completion rates for people that started their apprenticeships in 2003 ranged from 44.7 percent to 55.1 percent. In a recent address to a national forum of exploration companies Mr Knott said AMMA members were taking steps to address the skills shortage under their own steam such as increasing in-house training; multi-skilling existing workers; and improving skills utilisation between roles. He also outlined some key areas which AMMA believed were part of the solution to meeting the resource industry’s labour force challenge - namely skilled migration and increased female participation in the industry. 72
“Despite resistance from some quarters of the union movement, AMMA believes accessing skilled and semi-skilled labour from overseas is a necessary adjunct to training Australian workers and sourcing workers locally,” he said. AMMA recently welcomed an announcement of the Federal Government to introduce Enterprise Migration Agreements, which for large resource projects will provide streamlined access to skilled migrants, pre-qualifying employers for sponsorship and reducing agreement negotiating timeframes. EMAs are intended to act as an overarching agreement which will allow a project owner or prime contractor to establish the number of skilled overseas workers and occupations required on a project, in a not dissimilar way to how labour agreements operate. However, EMAs are ‘mega’ resource project-specific, applying only to projects with a capital expenditure of A$2 billion or more and a peak workforce of at least 1,500.
“Our members reported widespread skills shortages across a range of professions and technical trades prior to the GFC taking effect in 2008, after which there was a significant drop in demand for most of 2009”
Mr Knott said AMMA would continue to pursue a number of reforms to the current skilled migration scheme in the interests of its members, including: }} reducing the onerous nature of the english language proficiency testing; }} reducing the A$2 billion threshold applying to EMAs so as to ensure a greater number of resource industry employers could access the scheme; and, }} revising he current 457 working visa arrangements.
“AMMA believes accessing skilled and semi-skilled labour from overseas is a necessary adjunct to training Australian workers and sourcing workers locally�
AMMA believes industry and government must work together to highlight to women the benefits of careers in the mining industry, including generous wages and entitlements. AMMA believes the industry can do more to promote the recruitment and retention of women, including providing greater support and engagement of women in the workplace and emphasising career progression. Extra training of female workers is a valuable retention strategy but also helps with attraction as more highlytrained women move up the corporate ladder, opening up more entry-level roles for women in the industry. Mr Knott says innovative job design is another factor that works to enhance the recruitment of women by helping them to more readily identify pathways to entry level jobs and promotional opportunities within the industry. Overall, AMMA believes access to temporary and permanent overseas skilled labour is a small but important component to developing a highly competent resource industry workforce, with the long-term intentions of employers in the industry being to up-skill and supplement the Australian workforce rather than replace it. With this in mind, AMMA is advocating for employers to embrace a multi-faceted approach to tackling the skills shortage in the short and long-term in order to ensure the benefits of the current resource boom flow to the industry, the economy, workers and their families.
Focus Mining
On the issue of English language testing, in November 2010, 38 percent of AMMA members said the increased English language testing requirements had made recruiting skilled labour from overseas more difficult. In relation to the other important issue of improving female participation in the industry, AMMA recognises the proportion of women in the Australian resource industry is relatively low. In 2001, just 11 percent of the mining industry workforce was female, which has grown to 16 percent 10 years later in 2011. In mining exploration and other support services, there is currently a higher proportion of women than in the mining industry as a whole, at 17 percent. Mr Knott, however, says such figures are not an indication of how much the industry values women as employees, with an overwhelming 91.7 percent of respondents to an AMMA November 2010 survey saying they would like to employ more women if they were available.
Despite the undoubted positives associated with increasing female participation in the mining industry, AMMA members have in the past cited barriers to the attraction and retention of female workers, including: }} a lack of interest from women in applying for roles (60 percent of respondents); }} a lack of the required skills (40 percent); }} family responsibilities (40 percent); }} unattractive rosters (30 percent); }} a lack of workplace flexibility (20 percent); }} geographical constraints (20 percent); and }} cultural impediments (10 percent).
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CME, Inside
the voice of WA’s resources sector By Reg Howard-Smith, Chief Executive
T
he Chamber of Minerals and Energy of Western Australia (CME) is the peak resources sector representative body in Western Australia (WA). CME exists to champion the sector and assist it in achieving its vision to lead the world in sustainable practice through innovation and to underpin Australia’s position in the global economy. CME started out as the Coolgardie Chamber of Mines and Commerce following the discovery of gold in 1895. Local leaseholders and representatives of the area’s gold mining companies formed the chamber to advance their interests. The Kalgoorlie Chamber of Mines was inaugurated the following year, with a Perth Chamber of Mines established in 1897, made up of attorneys and legal managers of gold mining companies Interestingly, the Perth chamber soon folded as it was considered too removed from the industry’s geographic centre. Over the next few years, a great deal of new legislation was passed and trade unions grew in influence. It became necessary for mining companies to unite on a larger scale. So, in 1900, the Kalgoorlie and Coolgardie Chambers were amalgamated to provide 74
The Chamber of Minerals and Energy WA
Focus Mining
a consolidated voice for the flourishing gold mining industry, and the Chamber of Mines of Western Australia was born. At the first general meeting of the new Chamber on 11 March 1901, Richard Hamilton was unanimously elected as the inaugural President, a position he held until his death in 1943. This meeting was attended by 37 members, who voted upon the Chamber’s structure and Constitution. At that time, the Chamber’s financial assets totalled £520. CME has grown with the mining industry, particularly through the boom times of the 1960s when key minerals such as iron ore, bauxite and nickel came on line. As the industry expanded into oil, petroleum and natural gas, so too did CME, leading to its formal renaming as the Chamber of Minerals and Energy of Western Australia. Today’s mining and energy sector is diverse and complex covering exploration, processing, downstream value adding and refining There are over 966 operating mine sites and close to 73 operating oil and gas fields in Western Australia. CME represents more than 200 companies directly involved in the resource sector (including mining, oil and gas) or those providing services to it. CME’s member companies generate 95 percent of all
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The Chamber of Minerals and Energy WA
mineral and energy production and employ 80 percent of the resources sector workforce in the State. Our member companies are the foundation of CME’s success, their valuable contributions helping build and prioritise our agenda. Their efforts and expertise enables CME to lead policy development on issues impacting on the resources sector, and promote the sector’s value to the Western Australian and national communities. Western Australians are very perceptive and would acknowledge that much of our wealth and prosperity has been built upon the resources sector. Our rich mineral endowment has been used to our best advantage and they are keen to see benefits
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“As an industry, a community and a government, the time is now right to apply the lessons of earlier periods of growth to capitalise on an extraordinary opportunity to build prosperity for our local community, the State and the nation”
the original study. The State Growth Outlook is based on an industry survey of development intentions, focusing on the implications for the key growth enablers of people, energy and water. An immediate priority identified in the report is to address skilled labour shortages. Driven by a pipeline of projects, the WA resource sector’s now directly employs 101,100 and is projected to reach a peak of 119,500 people in the next one to two years. This is an increase of almost 44,000 on the total 2009 workforce (75,600) – mainly due to an increase in preproduction workers. By 2020, incremental increases may see the sector’s direct workforce pass more than 122,000.
The goal is always to employ local people first but with a workforce requirement of this size, we need to look across the Nullarbor to attract workers from the east coast of Australia and over the oceans for skilled migrants. The resources sector is experiencing a skills shortage, not a labour shortage. The priority must be to build a construction workforce that has the skills, qualifications and experience to satisfy the comprehensive occupational health and safety requirements that make us the leaders in workplace safety. Apart from the critical need for people, CME’s State Growth Outlook also indentified the growth in electricity consumption to jump substantially.
Focus Mining
of the next wave of growth shared by all. As an industry, a community and a government, the time is now right to apply the lessons of earlier periods of growth to capitalise on an extraordinary opportunity to build prosperity for our local community, the State and the nation. CME released its updated State Growth Outlook, a document first published two years ago during one of the most serious global economic crises since the Great Depression. The 2011 edition shows the resilience of the industry, the robust nature of its growth trajectory and reaffirms the need for the long-term vision and planning which were the headline recommendations of
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The Chamber of Minerals and Energy WA
The drive of projects in the resource sector could see total electricity consumption in WA increase by as much as 70 percent (on 2009 levels) by 2015. Electricity prices have risen sharply in the last 18 months and are set to further increase over the coming years through the cost of new generation capacity, demand growth and carbon pricing. Sector demand over this period (to 2015) is expected to increase by 18,800 GWh – and to 27,000 GWh by 2020. More than 80 percent of this demand will be selfgenerated – most of which will be fuelled by domestic gas. Energy planning must align with broader infrastructure planning and CME is advocating for the development the State Energy Initiative and associated institutional reform. Further the development of a State Infrastructure Plan to cover all enabling infrastructure should be an essential body of work for our industry to push. Total water demand in WA is expected to increase from 2,500 GL/a in 2009 to 3,820 GL/a by 2020. Additional water use by the sector is expected to reach 422 GL/a above 2009 demand levels by 2015. Most of this water will be self-extracted. The majority of the additional minerals and energy water use in the state will be located in the Pilbara, with a growth rate of 13 percent per annum over the period to 2015. Other high growth areas include the Mid West (5 percent per annum growth) and the Perth/Peel region (9 percent annum growth). In addition to increased collaboration, exploring technology and innovate solutions within the industry are necessary to address future water demands. Despite these challenges, the future of the WA resources sector is very strong with more than A$200billion worth of projects either under construction or consideration. It is an extraordinary opportunity to not only build Western Australia but benefit our nation as a whole and CME will be there every step of the way.
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