Australasia Outlook Issue 6

australasia

issue 06 | APRIL 2012 | www.AUSTRALASIAoutlook.coM

Elixir Life

of

inside midcoast water, a regional leader in water that supplies 40,000 households

CROPLANDS

also this issue

lend lease

haulmax

Technology tamed

GBCA

CONTENTS

03 10

News

12

W o r l d ’s b e s t b e a c h e s Not one Australian beach has made it into TripAdvisor’s list of the world’s top-25 beach destinations

16 18 26

A u s t r a l i a ’s w e a l t h i e s t execs These guys are the envy of everybody, especially us poor editorial-types

10

W h at’s o n … M e l b o u r n e Stuck for things to do this autumn? Pay Melbourne a visit Bearing the burden Haulmax is unique in its field as the only provider of off-road long distance haulage equipment to the global mining industry C r o p l an d s Croplands Equipment has been in the business of manufacturing spraying equipment since 1972

34

The elixir of life MidCoast Water has invested in a three-stage upgrade programme, with a new filtration plant the first order of business

42 46

A s s o c i at i o n f o r e w o r d The Water Services Association of Australia

50

Lend Lease Lend Lease has breathed life back into the southern end of Darling Harbour

58

A s s o c i at i o n f o r e w o r d

62

A s s o c i at i o n f o r e w o r d Green Star and NABERS-rated buildings outperform non-rated buildings says Matthew Clarke

A s s o c i at i o n f o r e w o r d Is water as scarce as we though? Tom Mollenkopf, CEO of the Australian Water Association, gives his verdict

Romilly Madew, CEO of the Green Building Council of Australia

12 26 34 50 3

Editorial

Editor – Ian Armitage Writers – Colin Chinery Jane Bordenave Robert Michaels

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 Design & Production manager Lisa Ferron Images: Getty News: NZPA, AAP, SAPA

digital & IT

Head of digital marketing & development – Syed Ahmad

TNT multimedia LTD CEO - Kevin Ellis Chairman - Ken Hurst Publisher TNT Multimedia Limited

TNT Multimedia Limited, Unit 209, 16 Brune Street, London E1 7NJ

Enquiries

Welcome Mining tax passed into law The Australian Senate has pushed through into law a 30 percent tax on iron ore and coal mining companies.

The Minerals Resource Rent Tax (MRRT) will raise A$10.6 billion over three years from major companies including BHP Billiton, Rio Tinto and Xtrata and is aimed at distributing the benefits of the resource boom in Australia to other segments of the economy.

It comes into effect on 1 July and the government wants to use the funds, amongst other things, to reduce Australia’s company tax rate from 30 percent to 29 percent.

The move, however, has caused much controversy and Opposition Leader Tony Abbott has already vowed to repeal the tax if he wins government.

Critics say the tax is an attack on the mining industry and another example of the union-dominated Labor party slugging profitable companies.

Andrew “Twiggy” Forrest, the richest man in Australia (page 10, is strongly opposed to the MRRT and his firm Fortescue Metals Group is considering mounting a legal challenge to the tax on the grounds it is unconstitutional.

This month we have a number of exciting profiles for you, including a look at Lend Lease, Haulmax, MidCoast and Croplands.

We also look at the world’s best beaches, check out what to do in Melbourne this autumn and bring you a list of Australia’s richest executives (which will certainly change in the light of the MRRT).

Enjoy the magazine

Telephone: 00 61 (0) 2 8332 7512 Email: nicholas@tntdownunder.com

SUBSCRIPTIONS

Telephone: 00 61 (0)2 8518 1223 Email: nicholas@tntdownunder.com

australasianoutlook.com

4

Ian Armitage Editor

News s p o r t

b u s i n e s s

Qantas concerned by Virgin restructure

Qantas has called for regulators to take a ‘close look’ at Virgin Australia’s proposed ownership restructure.

In a submission to Australia’s International Air Services Commission (IASC) dated March 12, 2012, Qantas general counsel Brett Johnson raised concerns that mooted changes to Virgin Australia’s ownership were likely to result in foreigners having effective control of the day-to-day operations of Virgin’s international operations.

Mr Johnson said this would be in breach of Australia’s obligations under the many air services agreements (ASA) with other countries.

“Effective control at the day-to-day management level is of key importance in analysing compliance with obligations under the ASAs,” Johnson said.

In February Virgin Australia proposed to split its international operations into a separate, unlisted entity that was owned by current shareholders - a bid to open up the share register to foreign investors.

The listed company would become a wholly domestic airline and be freed from government regulations requiring all Australian flag carriers operating international services to be no more than 49 percent foreign owned.

Richard Branson’s Virgin Group currently holds about 26 percent of Virgin Australia, while Air New Zealand has a 19.9 percent stake.

This left little room for other non-Australians, be they airlines or institutional investors, to climb on to the share register in any meaningful way.

Qantas’s submission was prompted by Virgin’s recent application to IASC to transfer its capacity on Australia-Indonesia services to Virgin Australia International Airlines Pty Ltd. The Flying Kangaroo called on the commission to undertake a comprehensive public review to confirm Virgin Australia International would at all times be in a position to remain a designated Australian flag carrier under the relevant ASAs.

Former NZ rugby boss Jock Hobbs dies aged 52

Michael “Jock” Hobbs, a leading figure in New Zealand rugby who helped secure his country’s bid to host last year’s World Cup, has died aged 52 following a long battle with cancer.

“Our family would like to thank everyone for the outpouring of support we have received over the last week,” his family said in a statement issued through New Zealand Rugby Union (NZRU).

Hobbs captained the All Blacks four times during a 21-Test career but was best known as an administrator, overseeing the World Cup bid that culminated in New Zealand ending a 24-year drought at the tournament in October.

“This was possibly his finest hour. Winning the trophy was certainly one of New Zealand’s finest hours,” Prime Minister John Key said, adding that he was “incredibly sad” at Hobbs’ passing.

“Jock was a man whose determination drove him to many successes in his life. It was that determination that saw him wage war against his illness for a prolonged period.”

Hobbs was chairman of the NZRU and Rugby World Cup 2011 until 2010, when he stood down to concentrate on his battle with leukaemia.

5

News L i f e s t y l e

b u s i n e s s

NSW floods continue

Domino’s to create 1,000 new jobs

One-third of NSW’s communities have been declared natural disaster zones as the worst flooding in decades continues to threaten the state.

Fifty three out of NSW’s 152 local government areas have now been declared natural disaster zones.

The latest areas to be declared were Bombala, Murray Shire, Central Darling and Hay Shire.

NSW Health issued a warning about mosquito-borne infections such as Ross River Virus and Barmah Forest virus.

“These infections can cause symptoms including tiredness, rash, fever, and sore and swollen joints,” director of health protection Dr Jeremy McAnulty said.

Ninety-four cases of Ross River virus and 56 cases of Barmah Forest virus were diagnosed in January and February.

Meanwhile, the NSW government has confirmed it will not be pursuing a flood levy to help rebuild flooded communities.

Treasurer Mike Baird said: “We discussed this in cabinet yesterday and it’s very clear that we don’t think the state needs another tax at this point in time.”

Australia’s biggest pizza company Domino’s Pizza Enterprises has more than 1,000 new jobs to fill nationwide, off the back of a recent technology-led surge in demand for pizza.

Domino’s needs extra pizza makers, delivery drivers and part-time managers at its 482 Australian stores.

Chief executive Don Meij said it is now easier for consumers to order their pizzas via applications on mobile phones or tablets, meaning they are ordering more pizzas than ever before.

“Our stores are desperately in need of additional staff to fulfil orders and deliveries,” Mr Meij said in a statement.“Some stores have as many as 10 jobs available.”

Three hundred and fifty jobs are available in Queensland, 300 in NSW, 150 in Victoria, 100 in Western Australia, 50 in South Australia, 21 in the ACT, 20 in Tasmania and 10 in the Northern Territory.

The jobs are available now and include casual, part-time and full-time positions.

m o n e y

Santander opens first Aussie branch Europe’s biggest bank, Banco Santander, has opened its first branch in Australia as part of the Spanish bank’s push into the Asia Pacific.

Santander is among the world’s 10 biggest retail and commercial banks by market capitalisation, and opened its fourth branch in the region in George Street in Sydney’s CBD. The branch’s operations will focus on 6

wholesale banking products, including trade and project finance, and corporate loans for the bank’s global clients, many of whom have a significant presence in Australia, Santander said in a statement.

The Spanish lender has 102 million customers worldwide, 14,760 branches, and 193,000 employees.

b u s i n e s s

b u s i n e s s

Small business tax cuts to be announced The Federal Government will introduce legislation for business tax cuts during budget week in May, moving quickly to ensure 2.7 million small businesses receive a much needed boost, it has been revealed.

The cuts for small enterprises are tied to the passage of Labor’s planned 30 percent minerals resource rent tax (MRRT) on coal and iron ore profits, which is expected to raise A$11 billion over three years.

The funds will go to support

boosts in superannuation and a broader corporate tax cut to 29 percent, from 30 percent.

Finance Minister Penny Wong confirmed legislation would be introduced into parliament in the week of the 8 May budget to ensure small businesses get the tax reduction from 1 July.

“The government is committed to reducing the company tax rate, particularly for small business, through the minerals tax,” Senator Wong said in a brief statement.

b u s i n e s s

Riviera exits receivership and returns to private ownership Boat builder Riviera has been bought by Queensland-based investment company Longhurst Marine Holdings.

The sale will allow Riviera to officially exit receivership and “move positively forward” under private ownership The new owner says it will preserve 340 jobs on the Gold Coast, “the majority” of Riviera staff and contractors.

Longhurst Marine Holdings has also signed a long-term lease for Riviera’s Gold Coast manufacturing facility at Coomera.

Managing director Rodney Longhurst said the boat builder’s ability to remain strong during tough economic times had piqued his interest.

The company had been operating in receivership for almost three years and competition had been fierce, he said.

Former Riviera chief executive Wes Moxey has agreed to return to the company.

“Riviera has been a very large and influential part of my life,” he said in a statement.

SK Group to up stake in Cockatoo Coal South Korean conglomerate SK Group has said it will increase its stake in Cockatoo Coal from 5.5 percent to 40 percent in the first half of this year.

In a statement it promised not to raise its stake above 40 percent for four years, “except in limited circumstances”.

Under Australian takeovers law, usually any bid for more than 20 percent of a listed corporate entity triggers a full takeover.

Cockatoo Coal managing director Mark Lochtenberg said the proposed placement would leave the miner in a strong financial position to pursue its projects.

SK Networks, the trading arm of SK Group, has agreed to provide a guarantee to support a A$150 million secured loan facility for Cockatoo Coal, which is not dependent on the placement proceeding.

The transaction is subject to shareholder and regulatory approval.

b u s i n e s s

Manufacturing activity rises in Feb Australian manufacturing activity in February expanded for a third consecutive month, a private survey shows.

Gains in activity were largest in the clothing, footwear and transport equipment sub-sectors.

The Australian Industry Group/PriceWaterhouseCoopers Australian Performance of Manufacturing Index (PMI) was 51.3, only 0.3 index points down on the January reading.

Readings above 50 indicate an

expansion in activity.

Australian Industry Group (Ai Group) chief executive designate, Innes Willox, said the result suggests manufacturing remains resilient in the face of the high Australian dollar.

“The movement of new orders into positive territory for the first time since the middle of 2011 is also encouraging,” he said in a statement accompanying the survey’s release.

7

News b u s i n e s s

b u s i n e s s

Gloucester-Yancoal merger gets approval

RFG to buy Pizza Capers

Treasurer Wayne Swan has approved the merger of Gloucester Coal and China’s state-owned miner Yancoal.

The two companies entered an agreement to merge in December. It will create the largest sole coal producer in Australia.

“The merger will also allow Yancoal’s parent company, Yanzhou Coal Mining Company Limited, to achieve a listing of its Australian operations by the end of 2012, which was a condition of its acquisition of Felix Resources Limited in 2009,” Mr Swan said in a statement.

He said Yanzhou had an extra 12 months, to the end of 2013, to meet the condition to lower its ownership of Yancoal to under 70 percent, which was also required as part of its purchase of Felix.

The merged business, Yancoal, would be required to continue its production and supply arrangements on a commercial basis, and keep its headquarters in Australia, he said.

Yanzhou and Yancoal would also have to report to the Foreign Investment Review Board on their compliance with the conditions every year or as required.

“Yanzhou’s investment in the Australian coal industry will allow for the further development of Australia’s coal deposits, which will have positive impacts on employment and growth in the sector and more broadly for the economy,” Swan said.

8

Retail Food Group (RFG), the company behind brands such as Brumby’s Bakeries, Donut King, and Michel’s, is to add the Pizza Capers chain to its portfolio.

RFG said it had entered into a conditional agreement to acquire the Pizza Capers franchise system, which has 110 outlets throughout Australia.

“The transaction represents the culmination of an 18-month engagement, during which each party has become well acquainted with the others business and operational philosophy,” RFG chief executive Tony Alford said in a statement.

The Pizza Capers system, which focuses on gourmet pizza and related products, was established in Brisbane in 1996.

The majority of the group’s 110 outlets are based in south east Queensland while the remaining stores are in regional Queensland, NSW, Victoria, ACT, South Australia, Tasmania and Singapore.

s p o r t

Bennett era off to losing start for Newcastle The Wayne Bennett era at Newcastle got off to a losing start with his former St George Illawarra side spoiling his welcome party with a dramatic 15-14 golden-point win in a thrilling NRL opener.

Jamie Soward’s field goal from 25 metres out with 25 seconds of the first period of the extra-time remaining sealed the win for the Dragons, who led for most of the game in front of a club-record attendance of 29,189 at Hunter Stadium.

Brett Morris and Matt Cooper scored tries for the Dragons, while Jarrod Mullen and James McManus crossed for the home side.

s p o r t

Australia win tri-series against Sri Lanka Clint McKay inspired Australia to a 16-run victory over Sri Lanka to claim the tri-series title.

Australia won the best of three finals series 2-1 despite the absence of captain Michael Clarke, who will miss a month of cricket with a hamstring strain.

McKay was the central character in the decider, helping rescue Australia after a middleorder batting crash cruelled hopes of a massive total.

Australia’s acting captain Shane Watson was thrilled with the performance of his bowlers.

“After getting 231, we knew we were going to have to bowl extremely well to defend that, and we did,” Watson said.

“It’s brilliant to see that when the guys really set their minds to it, we can do it.

“That is the standard we set tonight. That is where we want to play all our cricket.”

m o n e y

Greece debt-swap to go ahead Greece has managed to convince a high proportion of its private creditors to accept steep losses on their bonds, pushing through what is the largest restructuring of government debt in history.

Holders of 85.8 percent of debt subject to Greek law and 69 percent of its international

debt holders agreed a debt swap, according to the Ministry of Finance.

Take-up was high enough for the government to force unwilling investors to consent to the deal.

Athens needed to get 75 percent to push through the deal.

The Finance Ministry extended the deadline for holders of foreign-law bonds until March 23.

The deal aimed to slash the country’s national debt by 107 billion euros, with private bondholders accepting a face-value loss of 53.5 percent in exchange for new bonds with more favourable repayment terms.

A total of 206 billion euros out of Greece’s 368 billion euro national debt is in private hands.

If the swap had failed, Greece would have faced defaulting on its debts in two weeks, when it faced a large bond redemption.

9

Australia’s

wealthiest executives Andrew Forrest

Frank Lowy

Kerry Stokes

10

James Packer

Rupert Murdoch

business

These guys are the envy of everybody, especially us poor editorial-types at Australasia Outlook.

By Ian Armitage

A

get-rich-quick scheme -- a term often used to describe a shady deal -- is a plan to acquire high rates of return for a small

investment.

It is the sort of thing us mere mortals hope to one-day dream up. And pull off.

But these folks got rich the hard way (well most of them did anyway) – good oldfashioned hard work.

The list has some predictable names, mining magnate Andrew Forrest, media mogul Rupert Murdoch, media man Kerry Stokes and Westfield chief Frank Lowy.

We’ve used BRW’s Executive Rich List to compile our list. The data is a little old.

A new list will be out in a few months… by which point we’ll have a whole new bunch of people we’ll love to hate.

5. Frank Lowy Position: Co-Founder, Non-Executive Chairman, Westfield Group Net wealth: A$1.75 billion Westfield Group chief Frank Lowy is the first name on the list. The Australian-Israeli businessman is co-founder of Westfield, operator of over 100 shopping centres in Australia, New Zealand, the US and the UK. He was ranked number one on BRW’s 2010 rich list.

4. Kerry Stokes Position: Chairman, Seven Group Holdings Net wealth: A$1.8 billion.

Australian businessman Stokes is one of several media men in this list. He holds business interests in a diverse range of industries including electronic and print media, property, mining, and construction equipment. His wealth for 2011 was an

estimated A$1.8 billion, boosted by a reorganisation of his business. He was ranked 785th on the Forbes list of billionaires in 2008.

3. James Packer Position: CEO, Crown and Consolidated Media Holdings Net wealth: A$3.6 billion The son of the late media mogul Kerry Packer, James Packer comes in at number three. Following his father’s death, Packer moved away from the family’s traditional media businesses, and focused on creating a worldwide gambling empire. His net worth was an estimated A$3.6 billion.

2. Rupert Murdoch Position: Chairman and CEO of News Corp Net wealth: A$ 5.7 billion Murdoch is a man that needs little introduction and he regularly features on BRW’s rich lists. This time around he came in at number two, thanks to News Corp’s shares remaining flat during 2011, sliding to A$5.6 billion from almost A$6 billion. Murdoch’s troubles continue.

He faces allegations that his companies, including the now defunct News of the World, have regularly been involved in hacking phones and he has been the subject of police and government investigations into bribery and corruption in the UK and FBI investigations in the US.

1. Andrew Forrest Net wealth: A$6.2 million Position: non-executive chairman (formely CEO), Fortescue Metals Group Mining magnate Andrew “Twiggy” Forrest is the richest man in Australia. Australia’s mining boom has seen Forrest grow his wealth to A$6.2 billion. In 2003, he took control of Allied Mining and Processing and renamed it Fortescue Metals Group. He is still a major shareholder of FMG, through his private company, The Metal Group.

He has been Non-Executive Chairman of Fortescue Metals Group Ltd., since August 18, 2011.

11

Top beaches

The World’s

Palm Eagle Beach, Aruba

I From deserted white sand lapped by turquoise water to waves crashing against rugged shores, Australasia Outlook reviews the top five of TripAdvisor’s list of the world’s top beaches.

By Ian Armitage 12

magine the horror. Not one Australian beach has made the cut into TripAdvisor’s list of the world’s top-25 beach destinations.

Shock, I know. But it’s true.

Providenciales, an island in the Caribbean’s Turks and Caicos Islands, took out the top spot for the second year in a row.

Palm Eagle Beach in Aruba, another Caribbean island, was named the second best beach destination in the world, while Tulum in Mexico took out third spot.

These aren’t as good as Aussie beaches, you cry. But give them a go.

The TripAdvisor 2012 Travellers Choice Beach Destination Awards were based on reviews by travellers in TripAdvisor, the world’s largest travel site.

They have to know something, right?

Travel

Well, just in case they don’t, here’s our lowdown on the top five of TripAdvisor’s Travellers’ Choice award-winning world beach destinations:

of the best beaches in the country – and the whiter than white sand draws visitors from around the globe.

There is an unhurried feel to Provo – people walk slow, talk slow and sail through life at a relaxed pace.

1. Providenciales, Turks and Caicos The fact that Michael Douglas and Catherine Zeta-Jones have taken a vacation here says it all. But it wasn’t that long ago that Providenciales, or Provo as it’s known locally, was a sleepy little corner of the Caribbean. Now the secret is out.

Everywhere you look there is a new hotel sprouting from the ground. The upside is that finding a room beachside isn’t hard – there are stack loads to choose from. For the moment, deals are simple to find and the beach is still quiet.

Provo is home to Grace Bay Beach, one

2. Palm/Eagle Beach, Aruba Aruba has some excellent beaches with white sand and turquoise blue waters. Popular beaches on the west side of the island are Eagle Beach, Palm Beach, Malmok Beach and Arashi Beach. Palm Beach is where you’ll find the island’s luxury resorts.

3. Tulum, Mexico Tulum is a lazy cluster of eco-resorts lining a perfect beach about two hours south of Cancun.

It has sugar sands, jade-green water, balmy breezes and bright sun – and that makes it one of the top beaches in not just Mexico but the world.

Where else can you get all that and a dramatically 13

travel

situated Maya ruin? There are also excellent diving, fun cenotes, great snorkeling, and a variety of lodgings and restaurants to fit every budget.

4. Negril, Jamaica This is the very definition of fun in the sun. 81km west of Montego Bay, Negril’s highlight is its scintillating 11km-long beach.

Coral reefs lie just offshore, and you’ll want your camera close by to record the peach-coloured sunsets that get more applause than the live reggae concerts.

Tourism is Negril’s only industry and it is a big-money resort. But this is Jamica, and life is always laid-back. So don’t be put off.

5. Saint Pete Beach, Florida This is fun, and probably not the reason why this beach scores so highly, but Florida’s Saint Pete Beach is one of only two spots in Florida offering flights from JetLev, a waterpropelled jet pack that soars up to 30 feet over the water.

Inspired by James Bond’s famous escape in the title sequence of Thunderball, JetLev is described as a “Jetsons-like experience,” and the jet pack joins a growing stable of playthings the resort has been adding every year to distinguish itself from other vacation spots.

Oh, and the beach is really, really nice.

See picture.

The rest…

6. Boracay, Philippines 7. Cancun, Mexico 8. Punta Cana, Dominican Republic 9. Miami/Miami Beach, Florida 10. Varadero, Cuba

Providenciales

14

Tulum, Mexico

Saint Pete Beach, Florida

Negril, Jamaica

travel

Negril, Jamaica

Palm Eagle Beach, Aruba

15

Visit

Melbourne this autumn

Sophisticated and slick, edgy and rough. I’m talking about Melbourne. And there is plenty on offer for sport and art fans in Victoria’s capital this autumn.

These five events, ranging from an edgy opera production to Australia’s first city-based Ironman, are among major attractions in Melbourne this autumn.

EAT STREETS Melbourne Food and Wine Festival Each March food lovers in their thousands eat and drink their way around Melbourne, attending over 250 events in restaurants, down laneways, 16

on rooftops and in Victoria’s picturesque wine country. Until March 21 BIG LAUGHS Melbourne Comedy Festival Great laughs are dished out at this event by some very special international guests and popular local comics. International comedy royalty gracing the stage this year includes names such as Tom Green, Wanda Sykes, Tim FitzHigham, David O’Doherty and Jimeoin.

Until April 22

what’s on

Stuck for things to do this autumn?

Pay Melbourne a visit.

By Ian Armitage

CARS Formula 1 Australian Grand Prix One of Australia’s premier sporting events, the Australian Grand Prix offers an action-packed programme for all ages, both on and off the track.

March 15-18 FIT PEOPLE Ironman Asia Pacific Championship Australia’s first city-based Ironman event kicks off along the Frankston foreshore with a 3.7km swim, followed by a 180km cycle along the EastLink Tollway and a run along the old Melbourne marathon route from Frankton to St Kilda. The Ironman triathlon attracts athletes from across the globe keen to qualify for the 2012 World Ironman Championship later this year.

March 25 SONG AND DRAMA The Rakes Progress Victorian Opera’s 2012 season opens with an edgy production of Stravinsky’s The Rake’s Progress directed by John Bell and conducted

by Richard Gill. The opera explores the journey of Tom Rakewell whose wish for money is the catalyst for his decline and eventual decent into madness. It is your standard boy-meets-girls, boy-dumps-girl, boy-hangs-out-in-big-city-with-thedevil, boy-ends-up-in-the-nuthouse, boy-dies kind of story.

The season also features the new Australian opera Midnight Son and Mozart’s The Marriage of Figaro.

Various dates 17

burden Bearing the

18

Haulmax

Haulage equipment manufacturer Haulmax is unique in its field as the only provider of ‘fit for purpose’ designed off-road extended distance haulage equipment to the global mining industry. The company’s Global Marketing Manager, Bob Calvert, tells Australasia Outlook why what they provide is so important and his hopes for the future of the company.

By Jane McCallion

H

aulmax® is a manufacturer of specialist haulage equipment for use on mine sites.

The trucks the company provides are specifically designed to carry loads over distances of between 4km and 40km off road. The business uses Caterpillar® drive trains in its vehicles and also uses its global distribution network to reach its customers.

“Haulmax was founded in 2003, although it has since moved to Wynyard in northwest Tasmania, and is now part of the well-known and established Elphinstone group of companies,” says Global Marketing Manager, Bob Calvert.

Haulmax, he adds, saw a gap in the market in terms of the transportation vehicles available to mines.

Prior to its founding, mines typically had to use trucks designed for on-highway applications to transport materials around their sites. This was not always safe and was inefficient in terms of the tonnage the vehicles could haul over distance. Having identified this problem, a solution was proposed that a truck should be designed specifically for off-road application that would be safe even in poor weather and that could carry heavy loads efficiently.

19

Haulmax

Haulmax is therefore a very niche provider, but, as Calvert explains, this has been in the company’s favour.“We don’t have a direct competitor in the off-highway business. Our solution provides a lower cost per tonne for the material it’s hauling over a conventional onhighway truck being used in the same way. We are not in direct competition with the normal off-highway mining trucks either, as we take over where those trucks fail to meet a lower cost per tonne productivity once they start to exceed about 4km. So we fit somewhere between the two. However, we are seeing an increasing market for applications where traditional off highway trucks cannot operate due to inclement weather, whereby the Haulmax due to its design can sustain production. Albeit we are not carrying the same capacity, the mine can keep producing in such wet, soft and slippery conditions.”

As well as hauling items such as ore or waste materials, the vehicle bases are also capable of being used as an effective on site service support unit. “This could be from water tankers to carrying fuels and lubricating products for servicing the mining infrastructure

20

equipment, such as large dozers, drills and excavators,” says Calvert. “These machines are not designed to move very far so you have to bring these products to those machines.”

The company has always worked closely with its customers when it comes to servicing their needs and regards customer and particularly operator feedback as an invaluable contribution to its R&D and continuous improvement processes. “We’re always working to try and improve the ergonomics of the vehicles and we continue to develop new products to suit new applications; either longer distance or more effective performance, to further reduce the cost per tonne moved,” says Calvert. “That’s ultimately the key driver – to offer a solution that provides the lowest operating cost for that type of product.”

Haulmax has a permanent research and

We understand Tasmania business and Tasmanian issues and are able to tailor specific services to meet the requirements of any operation.

domEstic

4 Port and vessel agency 4 Stevedore coordination 4 Container sales 4 Pallet sales 4 Scheduling/management 4 FCL 4 LCL 4 Project cargo 4 Road 4 Rail 4 Freight equalisation

iNtERNAtioNAL

GENERAL

Our experienced staff will be more than pleased to assist you in addressing logistical issues and reducing operating costs.

4 Export/import 4 FCL 4 LCL 4 Ro Ro 4 Lo Lo / Bulk break 4 Project cargo 4 Air freight 4 Fumigation and steam clean 4 Documentation 4 Certificates of origin 4 Import customs clearance 4 Export customs clearance 4 Quarantine matters

61 (0)3 64 324 362 admin@freightconnections.com.au www.freightconnections.com.au 146 Wilson Street, Burnie. Tasmania 7320 – AUSTRALIA

Competitive rates - Premium service

Haulmax

development division that looks not only at solutions for hauling, but also solutions for rail maintenance.

“One of our products, branded Railmax®, uses the latest technology available to meet the stringent needs of compliance for ancillary track maintenance equipment operating on rail,” says Calvert. “We are also, of course, looking into new products for the future to enhance a low cost per tonne haulage profile for more capacity over longer distances.”

However, he acknowledges that there is only so far the company can offer a solution. “There is a cut-off point on mine sites where you’re going to say ‘well, conveyors

22

are going to be an answer, or rail is going to be an answer’, and so we work within the boundary of what is a typical mining lease. But that mining operation might need longer hauls in the future and current equipment may not fulfil the best solution and that’s where we step in. So it’s a niche market, it’s not all things for all applications, but it’s there to provide a solution to a particular problem, be it weather, distance, easier servicing around the mine, operator comfort, especially in extended hauling

“We don’t have a direct competitor in the offhighway business.

Our solution provides a lower cost per tonne for the material it’s hauling over a conventional on-highway truck being used in the same way”

23

Haulmax

where operators are sitting in the one spot driving over extended distances on mine sites, and cost per tonne.”

Over its lifetime Haulmax has faced three main challenges: obtaining market and application recognition for what is still a relatively new product; finding and keeping skilled labour; and fluctuations in global exchange rates.

“Mining is a conservative industry, so gaining recognition where there has not been a single source answer to a particular problem associated with extended haulage distance on mine sites is a continuing struggle.

Once we get a broader scope of recognition, it will make everything else that much easier,” says Calvert. “Then you’ve got the other component, obtaining skilled labour for the manufacturing process, at a competitive price, which is a continuous challenge the world over. The problem is that the market is offering in some cases, especially in the mining industry, high salaries to go to mine sites for maintenance people and manufacturing people. So we have to look at what we can do to maintain a sustainable workforce such as being able to offer other things for your workforce to make them happy. We’re very lucky in Tasmania to have a great lifestyle and attractive working conditions, which encourage people to come and stay on.”

While there are actions that the company can take to counteract the first two challenges, when it comes to exchange rates they are at the mercy of the market.

“The mining industry internationally traditionally works on US dollars so if you start with parity between the currencies and suddenly the exchange rate goes up to $1.05, straight away we’ve got a five percent impost that erodes your profit,” he says. “You can move your production overseas, but that will only do so much and you cannot always be certain of quality. So we are looking to grow our market in Australia, because that’s where we get our best return for our dollar, because we’re not seeing our profit eroded because of the exchange rate.”

Looking to the future, Calvert is very confident in Haulmax’s ability to continue growing. “Over the next five years, we see Haulmax being a very viable manufacturer and supplier to the mining industry on a global basis, which we will achieve in association with Caterpillar and its dealer network. Secondly we see ourselves working closely with our client base with regard to R&D. We will identify products that we can further develop that fit within our manufacturing profile so that we can continue to offer good solutions while sticking to our core business vision of supplying a haulage solution that will provide the customer with the lowest cost per tonne.” END

24

AME SYSTEMS AME Systems is a leading Australian owned manufacturer of quality electrical wiring harness, power and signal distribution systems for heavy transport, automobiles, military equipment, special purpose vehicles, motorcycles, marine craft, aircraft and fixed electrical plant.

Based in Ararat, Western Victoria with a modern facility of some 13,000 square metres with a team of over 250 highly skilled staff we service the electrical harness, power and distribution needs of small to large company requirements, both locally and internationally, and stock a vast range of components to meet the needs of our customers, from a single circuit to a full vehicle set.

More information check out our website: www.amesystems.com.au

Building relationships and working together for win-win electrical solutions

AME Systems is a leading Australian owned manufacturer of quality electrical wiring harness, power and signal distribution systems for heavy transport, automobiles, military equipment, special purpose vehicles, motorcycles, marine craft, aircraft and fixed electrical plant.

HEAD OFFICE & MANUFACTURING 18 Gordon Street, Ararat Victoria 3377 Australia P. +61 3 5352 9000 F. +61 3 5352 5199

amesystems.com.au

Technology tamed

Agriculture is one of mankind’s oldest industries, but it is also now one of the most technologically demanding. As we face increasing problems of drought and restricted land resources, the drive for efficiency has never been so high - this is where Adelaide-based Croplands Equipment comes in.

By Ian Armitage 26

Croplands Equipment

C

roplands Equipment is a manufacturer and distributor of spraying equipment for the Australian and New Zealand agricultural industries. The company was founded in 1972 in Wellington, New Zealand,

by Miles Deck, and it has since evolved to the point where it has a sprayer for virtually any application, from orchards to large crop fields and is now headquartered in Adelaide, Australia.

Agricultural chemicals manufacturer

Nufarm bought the business in 1988, although to an extent it remained a family business. Miles’ son Brendan took over from him as General Manager, where he remained until January 2012. Sean Mulvaney, who had been with the company for 14 years before taking the role, succeeded him.

Although Croplands finishes its products in-house, the majority of its primary manufacturing processes are outsourced. “We’re predominantly an assembly company,” says Mulvaney, “We import a lot of the components, from Italy and the USA. We then work with a multitude of local suppliers for items such as frames, 27

Croplands Equipment

QM 500

tanks, tyres etc to finish the process.”

The company also works with its suppliers in a research and development capacity: while it does carry out activities internally, it also works closely with its suppliers to develop or modify products in order to better meet the needs of its customers.

Mulvaney sees the decision to outsource the bulk of the manufacturing as one of Croplands’ defining strengths. “We have a lot of long standing relationships that help keep our fingers on the pulse with regards to market trends and new products or suppliers that are entering the market. One of our key strengths is our ability to work with these partners to integrate new technologies quickly.”

Indeed, the ability to absorb and deliver new technologies is something that is very important in the agricultural industry and manufacturers have to be able to keep up with developing trends and demands. “The adoption of technology is quite rapid in the agricultural market,” says Mulvaney. “At the moment, there is more focus around environmental awareness, so for us 28

“At the moment, there is more focus around environmental awareness, so for us that means minimising spray drift using technologies that make spraying more efficient and controlled”

236

C

396 132 TO CL

Innovation now, for the future.

Award winning custom moulding specialising in;

170

DEFENCE

200

MINING

35 77 REF

INFRASTRUCTURE

65 REF TO TANGENT

67 REF TO TANGENT

R870

147 REF TO TANGENT

62 REF TO TANGENT

220 REF

519 O/A

120 REF

490

WATER MANAGEMENT & HYDRAULIC ENGINEERING

144 74

D

AGRICULTURE

N

30째 REF

A

With a large rotomoulding capacity, complete product development, engineering and tooling services, Global Rotomoulding can add value and innovation to your product range.

SAFETY EQUIPMENT

D

Queensland

Victoria

14 Nans Rd (Warrego HWY) Helidon Spa (Toowoomba) , Qld 4344 T. 07 4697 7099 F. 07 4697 7706 info@globalwater.com.au

774 Koorlong Avenue Irymple (Mildura) , Vic 3498 T. 03 5024 6830 F. 03 5024 5175 info@globalwater.com.au

N

54째 REF

www.globalwater.com.au

Croplands Equipment

“We have a lot of long standing relationships that help keep our fingers on the pulse with regards to market trends and new products or suppliers that are entering the market.

One of our key strengths is our ability to work with these partners to integrate new technologies quickly”

RoGator 1100 that means minimising spray drift using technologies that make spraying more efficient and controlled.”

Croplands has met this demand with a new weed detection system called WeedIT, which it began rolling out a little under 12 months ago. “As opposed to conventional spraying where you go across a paddock with a big boom and spray everything,

ROTAPRO QM 500

30

Rotapro has a long term association with Croplands as a supplier of quality rotationally moulded products

Rotational Plastic MouldeRs

Australian owned and operated company with over 50 years experience in plastic molding.

We mAnufActure for

• Agriculture • Aquaculture • Automotive • Building • chemical • commerical • Industrial • Leisure • material Handling • Street furniture • Waste recycling • Product custom design and development • tooling design and manufacture

we give shape to your ideas www.rotapro.com.au E: info@rotapro.com.au P: 08 83844966 Lonsdale SA

Croplands Equipment

4660 Spra Coupe WeedIT actually detects the weed and only sprays down where a weed has been detected,” says Mulvaney, “With it you can save up to 80 to 90 percent of chemical.”

Another important side of this is moisture retention in the soil. “Many Australian farmers have now moved into what’s called ‘no till’ or ‘minimum till’ farming,” explains Mulvaney, “Whereas in the past they would get out the plough and turn the ground over, they now try to avoid it. Instead, they will spray the weed or the crop and let that break down into the soil, so it’ll build up organic matter in the soil.

“There is also a trend towards using larger equipment so you can spray at the right time and get the job done in more idea conditions, which bottles down to a big push towards increased productivity.”

In terms of keeping abreast of new developments in the agricultural chemistry industry, as a wholly owned subsidiary of Nufarm, Croplands has a distinct advantage. “We work very closely with Nufarm and we have one of their key employees based in our head office,” says Mulvaney. “The two businesses are very much ‘linked up’: through them we know what’s happening in the chemical game and through us they know what’s happening in the machinery game, so that’s quite a unique advantage we have.”

However, there is a fine line to be trodden when it comes to choosing what new technology to incorporate into its range. “We try to adopt technology but still keep things simple. We don’t necessarily aim to be the most highly technical company – we want equipment that’s reliable and easy to use. We have found that, with many farmers out there, if they can’t easily understand the machine themselves, they won’t buy it”.

Croplands’ focus on technology is not just internal.

Over the past eight months, the company has been rolling out a real-time barcode stock tracking system, worth A$200,000. “Real-time stock management has always been an issue for us, so implementing something like this has been on the cards for a long time,” says Mulvaney, “In the past, a part may have been taken for assembly but not actually issued out of available stock for days, meaning that a customer can ring to check if we have something, the computer says yes so an invoice is raised

32

but the parts are not there. This created a lot of angst both for the client and internally due to the additional work this created.

But by using scanners, as soon as a product moves from its location it impacts on what the computers are reading immediately. So we have faster, more accurate stock controls, reduced down time and more accurate stock meaning additional cost savings at stock take. It also provides more accurate data for forecasting and working with suppliers on lead times.”

Over the past four years, Cropland has seen impressive organic growth. Over the next five years, Mulvaney is hoping the company will both capitalise on the existing growth while also expanding into new areas.

“There are still markets that we haven’t been very strong in so our push is to increase our footprint in different markets and continue to consolidate our geographical spread.” ENDS

Croplands Equipment

alliance Alliance agricultural tyres, imported by Tyres4U, are a proud supplier to Croplands.

T Y R E S F O R A L L A P P L I C AT I O N S

Alliance manufactures a full range of Agricultural tyres including Row Crop, Flotation & Multi-Purpose (MPT) tyres.

Alliance tyres are tested and developed with equipment operators in Australia, and around the world, to improve your farm’s productivity.

Contact Tyres4U Ag Tyre Hotline on 1800 788 688 or visit www.alliancetyres.com.au

are proud suppliers to Croplands Alliance manufactures a full range of Agricultural tyres including Row Crop and Multi-Purpose tyres.

Established in 1951, Alliance manufacture radial and bias tyres of outstanding quality.

Alliance tyre designers spend a significant amount of time in the field, testing under a wide variety of conditions, and talking to equipment operators to make custom adjustments and design improvements for your advantage.

6 CONTINENTS OVER 120 COUNTRIES THE GLOBAL LEADER IN OFF-HIGHWAY TYRES

For your closest Alliance Authorised Tyre Dealer

& 1800 788 688

www.alliancetyres.com.au 33

elixir

The

of life

Extending its role beyond the traditional delivery of water and sewerage services to embrace greater responsibilities has seen MidCoast Water quickly grow to be an industry leader, with encouragement of innovation the key to this positioning.

BY Jane McCallion 34

The inlet into Bootawa Dam from the Manning River.

Water is pumped from the river when conditions are suitable and stored in the dam before proceeding to treatment at the new Bootawa Water Treatment Plant, prior to distribution to the community

MidCoast Water

M

idCoast Water was established in 1997 as a county council to manage the water and sewerage responsibilities of the Greater Taree and Great Lakes local government areas on the Mid North Coast of New South Wales.

The formation of MidCoast Water as a county council – as a result of a review into the operation of water supplies operated by electricity distributors - ensured control and management of the provision of important water and sewerage services to the local community, stayed local.

Today with the addition of the water and sewerage services of the Gloucester Shire Council area in 2011, MidCoast Water serves an area of 10,000 square kilometres and provides water services to 40,000 and

sewerage to 35,000 customers.

MidCoast Water’s role includes the maintenance and operation of five water supply schemes, including the Manning scheme, which has recently commissioned a new A$82 million microfiltration water treatment plant at Bootawa Dam – and 14 sewerage treatment plants.

“MidCoast Water’s new A$82 million water treatment plant at Bootawa is located next to Bootawa Dam, the main water storage in the Manning-Great Lakes, and will deliver a world-class standard of water to the community it serves,” says Robert Loadsman, General Manager at MidCoast. “The membrane filtration plant is capable of processing up to 60 million litres of water per day, with a provision for further upgrading to 75 megalitres when required.”

The new water treatment process is designed to overcome the long-term problems in the Manning water supply, where elevated iron and manganese 35

MidCoast Water

MidCoast Water is currently engaged in a number of large projects to reuse treated water. These projects focus on providing treated recycled water for irrigation purposes on golf courses, sporting fields and open spaces

levels, the presence of algae and dirty water after rain in the catchment have affected quality, Loadsman explained.

The new Bootawa Water Treatment Plant takes the water delivered to MidCoast Water customers in the Manning and Great Lakes into a world-class level – a long way from the unfiltered supply that MidCoast Water inherited when it was formed back in 1997.

“We inherited the largest unfiltered regional water supply in the country and we have been working towards providing our community with a solution to this problem since our formation,” says Loadsman.

That solution is a state-of-the-art plant that uses a microfiltration process to filter water drawn into the dam from the Manning River, before it makes its way into the reticulation system. “An investment of A$82 million went into the project, which came online at the end of 2010. We went through a tendering process for the three contracts that made up the whole project: one for the design of the process equipment; one for the design of the civil, electrical and mechanical works; and one for construction.”

The construction phase involved a large amount of local sub-contractors assisting the principal contractors, with a MidCoast Water project team on site every day of the construction and commissioning period.

“MidCoast Water is proud of the Bootawa Water 36

Treatment Plant project, both in the way it has been managed by MidCoast Water employees and in the service it will provide to our community for generations to come,” Loadsman says.

The finished plant uses the latest in filtration technology. The water is pumped from the Manning River to the Bootawa Dam before being drawn into the Bootawa Water Treatment Plant.

During the filtration process, water is drawn through fine polymer membranes, which remove fine particles and provide a physical barrier to achieve reliable removal of cryptosporidium, giardia and other harmful microorganisms without the need for chemicals. The water is treated with ozone, which both disinfects the water and removes the smell that can be left by algae, even after the blooms themselves have been removed. Finally, the water is charcoal filtered to neutralise the taste and smell, and given a final treatment of chlorine before being pumped to customers around the area.

“The plant capable of processing up to 60 million litres of water per day.

And while our highest usage to date is around 30, the plant has plenty of available capacity to ensure it is able to cope with future demand – the plant was actually built with a provision for further upgrading to 75 million litres a day should it be required in the future.”

The treatment plant is the first part of a three-stage upgrade programme for the Manning Water Supply Scheme, Loadsman adds. “The second part of the plan is the construction of a borefield, which is currently underway, designed to provide us with an alternative source of water, which we’ll be able to supplement if the river runs low. We’re also looking at raising the dam wall at Bootawa in the third stage of the upgrade, to double the capacity of our off -stream storage. An Environmental Impact Statement for this project is currently being prepared by the Office of Public Works.”

While these three projects form the crux of the organisation’s supply upgrade plan, there is another side to the equation: what to do with wastewater.

SCADA & Communications Engineering Solutions

Rad-tel is focused on building strategic partnerships across the Water industry, coupled with internal skills that range from Electrical and Automation Design, through to Field Installation and Commissioning. Our extensive knowledge of the Water Industry allows us to Commission Automation and Electrical Systems with a minimum of on-site engineering time.

MidCoast Water

Proudly australian!

all areas • 24 hours • 7 days

sewer & stormwater DraIN CLeaNING aLL PIPe worK 40mm to 2m DIameter root CUttING ComBINatIoN VaCUUm Jets CCtV PIPe INsPeCtIoNs (40mm to 2m DIameter) LIQUID waste traNsPort & DIsPosaL Proudly australian! sePtIC taNK PUmP oUts

serVING aLL INDUstrIes all areas • 24 hours • 7 days EmErgEncy SErvicE - 7 DayS

9627 7133 • 0417 924 993 sewer & stormwater DraIN CLeaNING aLL PIPe worK 40mm to 2m DIameter root CUttING ComBINatIoN VaCUUm Jets CCtV PIPe INsPeCtIoNs (40mm to 2m DIameter) LIQUID waste traNsPort & DIsPosaL sePtIC taNK PUmP oUts

serVING INDUstrIes serving aLL all industries

EmErgEncy SErvicE - 7 DayS Proudly 9627 7133 • 0417 924australian!

993

all areas • 24 hours • 7 days

sewer & stormwater DraIN CLeaNING aLL PIPe worK 40mm to 2m DIameter root CUttING ComBINatIoN VaCUUm Jets CCtV PIPe INsPeCtIoNs (40mm to 2m DIameter) LIQUID waste traNsPort & DIsPosaL sePtIC taNK PUmP oUts

serVING aLL INDUstrIes EmErgEncy SErvicE - 7 DayS

9627 7133 • 0417 924 993 38

“Our main focus at the present time is with recycling the water produced by our sewerage treatment plants to a safe, but not drinkable level.

We’ve got four such recycling schemes happening at the moment: one at Tuncurry, which will provide recycled water for the irrigation of golf courses, sporting fields, school playing areas and cemeteries and three schemes which will see wastewater treated for irrigating the golf courses at Hawks Nest, Harrington and Bulahdelah.”

MidCoast Water’s use of new technology is not limited to membrane filtration, nor does it rely on suppliers to provide ideas or solutions. “Innovation is valued highly and we are always striving to improve the way in which we manage the community’s assets. We’ve had some good results too – for example we’re now using plastic manhole covers, rather than the old concrete ones. It came out of an Operational Health and

sydneywide pipe cleaning Since 1995, Sydneywide Pipe Cleaning has been servicing all industries with its drain cleaning technology. With rapid growth and foresight the company has branched into associated fields of CCTV, surveys, liquid waste removal and disposal and the use of mini-water jets and mini-tankers to service those difficult locations.

The staff of experienced operators have helped the company’s growth and the clients expections of first class quality and service.

MidCoast Water

s

A focus on the health of the catchments from which it draws its water supply is a major priority for MidCoast Water. Chairperson Councillor John Weate and Waterwatch officer Kirsty Hughes recently launched a plan to focus on the health of the Manning River

primatec QDA PrimatecQDA and Mid Coast Water have developed a strategic relationship which spans over a decade, over this period there have been significant enhancements in the Water/ Wastewater control technology.

MCW and PrimatecQDA remain at the forefront of this evolution, the foundation of the relationship will always be based upon common goals, new and improved technologies and project management best practices.

Industrial Technology and Software

PRIMATEC QDA is a multi-discipline engineering and technology company providing end to end cost effective solutions to Mining, Industry and Utility Markets. Through our experienced professionals and innovative technologies we deliver value to our customers and their organisations.

We treat safety, quality and service as core values of our business and have embedded these into our standard operating processes and procedures.

OUR CORE COMPETENCIES include products and services in the following key disciplines: Automation and Process Control Electrical Engineering and Design Information Technology MES and Software Solutions Electrical and Instrumentation Support Services

HEAD OFFICE: 15 Annie St , Wickham, NSW, 2293, Australia.

POSTAL ADDRESS: PO Box, 828, The Junction, NSW, 2291

For any further information regarding our range of services and products please email info@primatecqda.com.au

P: (02) 4940 0256 F: (02) 4962 4794 W: www.primatecqda.com.au E: info@primatecqda.com.au

39

MidCoast Water

Safety issue really; the weight of the old concrete lids was a problem, as was the amount of water they were letting into the sewerage system during rain periods.

We initiated the idea of these plastic covers, which provide a lightweight, lockable lid. The concept has since been picked up by a firm that is now marketing and distributing them, which is quite pleasing.”

The main challenges facing MidCoast Water now are primarily environmental and demographic.

“The changing view of water resource management in New South Wales in particular is going to be a challenge,” says Loadsman, “There’s been a review of regional water and sewerage facilities in New South Wales going on for a number of years now and we put forward a proposal on how MidCoast believes this could best be managed. The outcomes of that are still under review, but I think that from our point of view, we need to ensure

sustainable outcomes for our community. We believe we need to work to preserve habitats that are critical to water quality, take the leads in suing the latest and best thinking and technology to manage the resource and pioneering solutions for future challenges.

“The other thing that is in everyone’s mind at the moment is coal seam gas and how that might impact on our groundwater. There have been some approvals upstream of our water intake that we’re dealing with at the moment to ensure that any discharges do not cause the rivers or groundwater sources to be compromised.

“We have a responsibility to plan for how we will provide services to the community into the future – and need to ensure that demands created by population growth are met. Since our formation we have concentrated on upgrading services for the region and we have extended services to many communities.

This extension of services is becoming more of a challenge, in that we don’t have access to external funding, so we’ve really got to find those resources and that financial capacity within our current base.”

These three aspects have clearly influenced the overall direction of MidCoast’s 30-year Strategic Plan. “In the plan, we’ve identified a potential for

How effective is your customer communication?

How fast is your customer response?

Salmat has solutions for every part of your business... > essential mail services > call centre solutions > digital communications > email & SMS solutions > telemarketing > voice biometrics > scanning workflow & archive solutions

Call 1300 SALMAT or visit www.salmat.com 9 Laurio Place, Mayfield West 2304

40

MidCoast Water

real change within the industry. We’ve been dealing with that in some way for the last four or five years, but the proposal we have made to the New South Wales government is for a larger authority. That would provide us with a larger customer base and allow us to grow, which would benefit some of the smaller areas we cover,” Loadsman says.

MidCoast has the drive and commitment to innovation that is vital to any business, anywhere.

The fact that it is dealing with “the stuff of life” (water) only makes these skills more valuable. END

General Manager of MidCoast Water, Robert Loadsman, in front of an aerial view of the recently completed $82 million Bootawa Water Treatment Plant. This plant provides high quality treated water to the majority of MidCoast Water’s 40,000 customers and utilizes a membrane filtration process

H

unter Power Pty Ltd is a Level 1 and 2 Authorised Service Provider, accredited with Ausgrid and Essential Energy.

We offer professional services throughout NSW including high and low voltage underground and overhead design and installation of network infrastructure.

Established by Director Luke Roberts in 2006, Hunter Power have carried out a large number of electrical design and construction projects ranging from large high voltage switch yards to low voltage residential developments.

For the last 5 years, Hunter Power have worked for Mid Coast Water servicing the majority of their electrical infrastructure needs. Projects include Bootawah Dam Taree, Tea Gardens Sewerage Treatment Works, Tuncurry Water Recycling Plant, Bulahdelah Water Supply Plant.

Hunter Power specializes in utility based electrical infrastructure.

p: (02) 4981 8869 e: info@hunterpower.net.au

41

Is water as scarce as we thought?

Rainfall over the past 12 months in many parts of the continent has caused some to question whether our water resources are as scarce as we thought.

By Mr Tom Mollenkopf, CEO Australian Water Association 42

T

he past year has been filled with change, challenge and progress for the Australian water sector, with the constant reminder of the variability and volatility of the physical environment. We have experienced the arrival of rains to most of the east coast following prolonged drought, and the continuing drought in the west.

Increasingly over the past decade, water – or its scarcity - has focused public interest on our sector and assisted in driving Australia to achieve reforms, research outcomes and innovation that have been the envy of the world. For most here in Australia, there has been a profound change over the years in the way that we view water: an acknowledgment

Australian Water Association

Warragamba Dam, NSW

of its scarcity; an appreciation of how precarious a resource it is; and a commitment to valuing water for its fundamental role in our lives.

Recently however, we have seen some cracks appear in that commitment. The year has seen a combination of factors converging that have confused some in the community, including some of our elected officials.

Rainfall over the past 12 months in many parts of the continent has caused some to question whether our water resources are as scarce as we thought.

Our comprehensive response to water scarcity over the past decade saw large investments to secure our supplies. Around the nation we have diversified our supplies through new water recycling schemes, investing in water efficiency, adding new drinking water through seawater desalination, building water grids to share water equitably and more. These investments have come

at a cost, but it is a cost that we as a society must bear if we are to assure our water supplies for a growing population in an increasingly uncertain climate.

Sadly, the cost of these investments is being reflected in our water bills just as we also start to see our energy prices rise and our economic situation is plunged into uncertainty with, it seems, financial crisis upon crisis befalling us globally.

It is understandable then that when water free falls from the sky, our community wonders why they have to pay more on their water bills.

First, while in a good year there may indeed be plentiful rainfall, it is the catching, storing, treating and piping to our 43

Australian Water Association

workplaces and homes that presents the real cost.

This supply must be done whilst meeting the highest quality standards and must be literally ‘on tap’, 24/7.

There is really no other food grade commodity that is delivered to your door at less than A$2.00 per tonne.

Second, our water accounts do not just cover water supply, but also sewerage, that is the cost of collecting wastewater – from homes (bathrooms, kitchens and toilets) and offices and factories – and treating it to meet health and environmental requirements before recycling it or returning it to the environment.

Finally, in the driest inhabited continent in the world, it has required serious innovation and investment from water professionals and organisations to provide the necessary security for our water supplies. The investments that have been made in providing diverse sources are essential if we are to overcome the vagaries of our unpredictable climate and the great volatility in rainfall year to year. If we could be assured that it would rain, life would be simpler. But whilst we hope for the best, we must plan for the reality that we will again have years when rain will be scarce and alternate sources will be essential.

It is times like now, when the dam levels are up, that we should look at the long term by continuing to encourage sound water practices and investment in diverse sources of water – whether these be recycling, desalination, inter-basin transfers or demand management. By ensuring that we have water security we are recognising that it is the variability and volatility of rainfall in Australia, rather than a general lack of water, that causes our water problems.

In a recent report by the Productivity Commission, Australia’s Urban Water Sector, it is noted that the cost of water for households is low compared to other 44

utility services and as a percentage of total household expenditure. Communities need to become aware that across jurisdictions, the proportion of disposable income spent on water and wastewater services by households in the lowest 20 percent of incomes was consistently low, ranging from 2.99 percent in the Northern Territory to 1.25 percent in Tasmania.

It is part of the Australian Water Association’s role to ensure that water issues remain at the top of the political agenda through providing evidence based information and access to leading water professionals.

In May 2012, thousands of water professionals will meet in Sydney to attend AWA’s Ozwater’12, Australia’s largest water event, consisting of both a trade exhibition and conference. The theme for this year’s event is Sharing Knowledge, Planning the Future. This theme is topical due to the aforementioned issue of water availability within our cities and in regional areas. There is a need to strike a balance that recognises the demands to supply water for municipal purposes, to produce food and fibre, and to support viable and diverse ecological systems. This balance has brought water issues to the front of regional and national agendas, where the equitable resolution of water allocation remains atop of often passionate debate.

The past 50 years have seen major changes to the institutional and governance

Australian Water Association

Warragamba Dam

structure, increased focus on sustainability, the emergence of reliable new technologies, more holistic approaches that consider water cycle management, consideration of alternate management practices, and the need to develop novel skill sets within the water sector. The Ozwater’12 programme of workshops and keynote speakers will provide an outstanding opportunity to reflect on the outstanding achievements and to discuss several of these hot topics in the sector.

AWA has the unique position in the water sector as the only body that represents all water-related disciplines. AWA continues to ensure that the decisions the Australian governments make look to the future, as these decisions take time to implement and the resulting investments will deliver benefits for many decades to come.

Over the past 50 years, the Association has worked with water professionals to provide networking and professional development opportunities to help continually advance skills and expertise in the sector, run a range of events to provide a forum for discussion on best practice in the industry, and disseminate industry information to ensure Australia maintains its position as a world leader in water management.

“In the driest inhabited continent in the world, it has required serious innovation and investment from water professionals and organisations to provide the necessary security for our water supplies�

To view upcoming events or to become a member of AWA, visit www.awa.asn.au 45

The

Water Services Association of Australia

WSAA is the industry body that supports the Australian Urban Water Industry.

By Ian Armitage

46

The Water Services Association of Australia

I

n Australia, water and sewage services, vital not only to people and households but also to industry and commercial enterprises, are provided

by Government regulated water utilities.

The Water Services Association of Australia (WSAA) is the peak industry body that brings together and supports this Australian urban water industry.

Members provide water and sewage services to over 16 million Australians. They also provide services to many of Australia’s largest industries and commercial enterprises.

As the peak body representing the nation’s urban water industry, WSAA acts on behalf of all members, providing a strong, national voice for the sector and taking a leading role in influencing urban water policy development.

To support members in their engagement with customers, stakeholders and the community, WSAA regularly assesses and reports on the performance of the industry.

Through the Association, member groups and interested parties can meet to discuss common issues and express concerns, as well as share information, research findings and developments. This collaboration and unity empowers WSAA to advocate on behalf of members for strong industry positions, and for regulation that is transparent, and based on solid evidence.

The Association, formed in 1998, regularly engages with and supports members, fostering and contributing to development of the whole sector, including educating the community on behalf of the industry.

WSAA enables collaboration and coordination, conducts research, and provides consultation, maintaining strong contacts with policy makers, legislative bodies, and their influencers, to monitor important issues as they emerge. When developing strategic directions for the water industry, decision makers regularly consult with WSAA, and seek input.

Executives represent the industry at seminars and forums, and the Association

regularly organises industry events and seminars to bring together the industry, levels of government, and the community.

In consultation with members, the WSAA analyses policy and develops programmes; and is instrumental in developing industry standards and processes.

The Vision of WSAA for the urban water industry is to provide: “Valued Water Solutions for a Better Future.”

The Association supports this Vision through the WSAA Mission: “WSAA will advocate, collaborate and innovate to deliver value for its members.”

Members’ Association at Work The urban water industry aims to provide cost effective delivery of water services and respond to the needs of customers, and is committed to managing sustainable urban water resources with as little impact on the environment as possible.

Urban water services are important to our community’s public health; and WSAA is proud of the attitude and willingness of members not only to innovate and always seek smarter ways of doing things, but to demonstrate a remarkable selfless concern for their community, particularly in times of crisis, as members’ response to recent extreme climate events has illustrated.

Community Action in Crises Australia’s climate variability has recently delivered extremes that impacted on the urban water industry— with violent floods and cyclones in the east, and unrelenting dry in the west. Destruction caused to the industry’s infrastructure could have interfered with the delivery of clean drinking water and safe sewage treatment and management in the affected areas.

However, Australia’s urban water industry spontaneously and voluntarily rallied round. The Association’s Water Services Infrastructure Assurance Advisory Group took on the coordination of offers to help, and WSAA Members provided equipment and expertise including treatment plant operators, sampling staff, and water quality testing, as well as personnel, office space and resources; even supplying sandbags to emergency services.

Leadership and Planning Climate variation and population growth must be planned for, and WSAA has provided a forum by organising conferences such as Ozwater, and lending expertise to

47

The Water Services Association of Australia

projects such as Cities of The Future workshops.

Ozwater developed a strong set of principles for water sensitive cities, which were adopted by the International Water Association for the Cities of the Future agenda. The key themes of liveability, resilience, and sustainability provided the focus of case studies at workshops, demonstrating the leadership role of the urban water sector in finding ways to bring governments, municipalities, utilities, communities, science and technology into collaboration.

Workshops have presented a vision of achievable future cities – including ways to ‘green’ city suburbs, a working green village and virtually self-sufficient inner city area, and a commercial scheme using biosolids to enable urban farming. Through recycling, conservation, greening and smart, integrated planning the Cities of the Future project aims to improve physical and mental health, reduce pollution, combat climate change, reduce greenhouse emissions, and optimize available drinking water sources.

These workshops indicate that with ongoing discussions between the water industry and colleagues in the urban planning and other sectors, ways can be found to deliver healthy, liveable cities and towns in Australia.

Historically the industry has focused on securing urban water services for the community, which necessarily led to priority effort on asset building and management. Over the past 10 years, the huge investment in water and sewerage infrastructure, and the establishment of alternative and rainfall independent water sources mean we can now plan to meet future challenges.

Sharing information, advising policy One of the Association’s chief strategies to support members is to maximise limited research dollars by 48

collaborating with local and international research organisations with shared priorities.

WSAA’s Australian Water Research and Development Coalition aims to pool resources and eliminate duplication, allowing knowledge and adoption to be leveraged across all stakeholders in the funding and delivery of urban water research.

Collaboration and sharing of existing research between Association members is maintained, with over 400 member projects compiled. A WSAA web page is dedicated to the sharing of research outcomes between members. Eighteen Association networks including a new Research Managers forum give members the opportunity to transfer knowledge, share skills, and network with colleagues.

The wealth of knowledge and information made available to WSAA provides a solid base for the Association’s submissions to major reports of significant concern to members.

Three recent major reports in the year indicate a promise of significant reform programmes with a welcome focus on urban water: m The Productivity Commission Inquiry into Urban Water Reform m National Water Commission Future Directions Report m The Infrastructure Australia Regional Water Quality and Security Report WSAA is advocating implementation of many of the recommendations made in these reports.

The Water Services Association of Australia

Benefits of WSAA Membership WSAA has two categories of Membership.

Full membership is available for public or private agencies or utilities providing water services and/or wastewater services, and bulk water suppliers and wastewater treatment operators providing services to agencies or utilities. Associate membership is available for corporate bodies or organisations with an interest allied to the water services industry.

Full members have board representation, and voting rights at Annual General Meetings, with up to two representatives. Members are invited to three Members’ meetings a year, with up to three attendees. They have access to WSAA committee membership and networks, and have input into the Association’s business planning process.

Valuable benefits also include 50 percent discount on bookshop publications, members only section access on the WSAA website, access to the UKWIR database, up to three free copies of WSAA publications and a free copy of WSAA codes.

Full members are also involved in the national performance report, benchmarking and other subscription projects, as well as eligible for free input in all WSAA activities and workshops.

Associate members may have one representative at Annual General Meetings, and are invited to two Members’ meetings a year, with up to two attendees.

Valuable Associate benefits also include 50 percent discount on bookshop publications, members only section access on the WSAA website, access to the UKWIR database, one free WSAA publication and a free copy of WSAA codes, as well as permission to load WSAA codes on the internet.

Water Authorities have access to WSAA Networks, and while Associates are encouraged to participate in appropriate WSAA events, fees may apply.

Applications for membership and associate membership are submitted to the Board for consideration and approval, AND WSAA can arrange for a proposer and seconder for your application if required.

Above: Adam Lovell (Executive Director) Sue Murphy (Chair)

“WSAA will advocate, collaborate and innovate to deliver value for its members”

To learn more visit www.wsaa.asn.au 49

Lend Lease builds on success with

Darling Quarter 50

lend lease

Lend Lease has breathed life back into the southern end of Darling Harbour, which has undergone a three and a half year transformation.

By Ian Armitage

P

roperty giant Lend Lease needs little introduction.

It is world-famous for urban regeneration.

In September, Lend Lease completed renovations at the former Sega World site at Sydney’s Darling Harbour, which had undergone a three and a half year transformation. It is one of its most impressive projects yet.

The site is a “vibrant mixed-use destination showcase” for economic, social

and environmental sustainability, Lend Lease says.

The urban regeneration project was a collaborative effort between Lend Lease and the Sydney Harbour Foreshore Authority (SHFA). The construction giant is very proud of it. Darling Quarter sets “global benchmarks”.

“What we’re particularly proud of is that by successfully completing this development, Sydneysiders and the broader community now have access to valuable public amenity and iconic new spaces on the fringe of the CBD, which will leave a powerful legacy for future generations,” Lend Lease CEO Mark Menhinnitt said in a recent interview.

51

lendlease

veolia

The A$500 million precinct includes an international standard commercial office known as Commonwealth Bank Place; a family/leisure precinct; a world-class family playground and community green; youth theatre; and a public carpark.

Lend Lease describes Darling Quarter as “great example” of how it is able to utilise all parts of its business – from funds management through to development and construction – to create an iconic project. “Darling Quarter is another great example showcasing Lend Lease’s integrated business model with the project being conceived, designed, developed and constructed by Lend Lease,” its website says.

“Through the power of our integrated model we have been able to deliver a holistic property solution that was attractive from the perspective of the owner, investor and tenant,” Menhinnitt added in a press release.

Darling Quarter has been acknowledged for its worldclass sustainability -- its two eight-storey campus-style 52

The key challenge facing decision makers today is balancing human development with sustainable living while dealing with urban growth, dwindling natural resources and climate change.

Given the complexity of these issues, creative and resilient solutions are vital. As the world leader in environmental services, Veolia Environnement offers unique sustainable solutions in water, waste and energy management.

We can transform cities by providing integrated services in waste and water treatment and recycling, optimised networks for waste collection, water and energy reticulation and local energy schemes.

More than 6,000 employees in Australia and New Zealand are dedicated to finding local answers to global problems – contributing to a better future.

Creative solutions for our environment

�

As Australia’s leader in environmental solutions, Veolia Environnement is helping to meet the largest urban development challenges of today and tomorrow; conserving natural resources and fighting climate change, whilst fostering sustainable and equitable means of growth.

Did you know?

The Darling Quarter Recycled Water Plant, designed, built and operated by Veolia, at the 6 Star Green Star Commonwealth Bank Place, treats sewage to produce high quality recycled water for cooling towers, toilet flushing and garden irrigation.

This sustainable initiative helps reduce potable water use of the building by 92%.

Check out www.myrecycledwater.com.au to find out how the plant works.

Across water, waste and energy, Veolia offers tailored and integrated services across municipal, commercial and industrial sectors. Veolia is also committed to delivering sustainable solutions for Australia’s ever-changing urban landscape.

With over 6,000 employees across Australia and New Zealand, Veolia is dedicated to contributing to a more sustainable future.

Contact national@veolia.com.au to see how we can help you.

www.veolia.com.au

lend Haulmax lease

“The site is a “vibrant mixed-use destination showcase” for economic, social and environmental sustainability”

54

buildings received a 6 Star Green Star – v2 Office Design certified rating with the Green Building Council of Australia, achieving the highest number of credit points for a building of its size.

“The design features of the site will save 2,500 tonnes of carbon emissions per year and reduce main water consumption by 92 percent,” Lend Lease says.

Darling Harbour is, of course, one of Australia’s most visited tourist destinations, as it is home to a large number of attractions, such as the Maritime Museum, the Sydney Entertainment Centre, and Sydney’s Chinese Gardens. This fact was not lost on Lend Lease. “The promenade serves as a link between the quarter’s many activities, so the redevelopment of this area was focused on creating a fun and engaging public space for tourists, as well as locals,” it says.

The redevelopment included upgrading numerous elements of the existing quarter, such as lighting, landscaping, and public

a picture says a thousand words

Structural, General and Heavy Steel Fabrication

Delivering first class service for over 35 years

“C&V have a reputation within our business for their client service and can-do attitude. C&V have worked closely with our project teams and have consistently demonstrated their capability to provide a quality product and on-time delivery.�

Chris Sofatzis.

Senior Construction Manager.

BOVIS LEND LEASE

C&V

SER

C&V ENGINEERING

www.cvengineering.com.au or call 9667 3933 23 Church Ave, Mascot NSW 2020 Australia Ph: +61 2 9667 3933 Fax: + 61 2 9667 3955

SERVICES Pty Limited

lend lease

sitting areas, but the real centrepiece of the project, says Lend Lease, is the playground.

Measuring over 4000m², the playground at Darling Quarter is the largest in Sydney and is free to the public.

The design was created by the Australian design firm, ASPECT Studios.

The water section of the playground has garnered the most hype, with a lot of press coverage (the central water features of the park were sourced from Germany and are the first of their kind to be installed in Australia), but there is much more to the park than that.

“Slide Hill”, for instance, is a collection of soft rubber mounds interspersed with slides, which children can safely climb up and the slide back down. Another exciting feature is the “Flying Fox,” which is Australian English for a zip-line.

The playground’s seamless integration into the quarter transforms it into something more than just a playground for children, Lend Lease says.

“The precinct has greatly improved public activation by bringing together commercial, retail and leisure all within the one area. A new pedestrian link, referred to as the Civic Connector, creates a gateway to Darling Harbour that connects to Town Hall station, Chinatown and the Darling Harbour waterfront,” Lend Lease adds.

END

To learn more visit www.lendlease.com.

56

SINCE

1989

Waterproofing • Jointing • Protective Coatings • Remedial Building • Flooring

Darling Walk – Lend Lease Harbour St Darling Harbour NSW 2000 A $257M project consisting of the construction of 2 buildings with 64,232m2 of office space and 2,592m2 of retail space with 17,370m2 of waterproofing works.

This includes a spray applied polyurethane system (Enviro HP 1200) to the Podium, Planters, Roof Areas, Terraces, Tanks, Cooling Towers and Epoxy Coating System (Enviro Epoxy RC) to Plant Rooms.

POLYSEAL - NSW (Head Office) Level 1, 305 Princess Hwy, St Peters, NSW 2044 Tel: (02) 8595 8600 Fax: (02) 8595 8661

POLYSEAL - VIC 33 Strong Avenue, Thomastown, VIC 3074 Tel: (03) 9372 6004 Fax: (03) 9372 6009

1 800 POLYSEAL

POLYSEAL - WA Unit 1, 45 Howson Way, Bibra Lake, WA 6163 Tel: (08) 9418 1079 Fax: (08) 9418 1094

POLYSEAL - QLD Unit 3, 28 Burnside Road, Yatala, QLD 4207 Tel: (07) 3112 5235 Fax: (07) 3112 5101

www.polyseal.com.au

By Romilly Madew, CEO of the Green Building Council of Australia.

58

green star green building council of australia

rising

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 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 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.

59

green building council of australia

3D The Bond

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 spectrally-selective 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.

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 environmentally-sustainable initiatives such as gas-boosted solar hot water systems, 267 square metres of solar panels

60

MCC

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 nonpotable 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 Property Institute and Property Funds Association in association with the University of Western Sydney, has found that Green Star-rated

green building council of australia

Inside CH2

Lilyfield

buildings are delivering a 12 percent ‘green premium’ in value and a five percent 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 privately-owned development, funds management and construction company, Grocon, said it was a “liability to have too few Green Stars.”

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 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.

END

61

Grocon Legion House 62

62

www.australasiaoutlook.com

nabers

Build it

GREEN Green Star and NABERS-rated buildings outperform non-rated buildings on a financial basis by a significant margin, especially at the upper end of ratings performance.

By Matthew Clark

A

unique rating system has equipped the Australian property industry to lead the world in greening its buildings.

The NABERS tools have been used for more than a decade to rate more than 60 percent of Australia’s office space, providing the industry with a deep understanding of building performance from a trusted and independent source.

NABERS, a national initiative managed by the NSW Office of Environment and Heritage, measures the environmental performance of buildings in comparison to the wider market using a simple rating system. This ability to measure the true impacts of environmental initiatives has encouraged innovation and best practice to achieve substantial cuts in the www.australasiaoutlook.com

63

NABERS

energy and water use of buildings.

The strength of the NABERS tools is in their ability to take detailed and complex third party verified data on the performance of buildings, and convert it into an easily understood star rating.

These ratings are used by building owners to measure and compare building performance, providing a baseline and a means of evaluating the success of sustainability measures. Ratings are also used to report and promote environmental achievements and to set targets.

A recent report on retrofitting buildings from the World Economic Forum (WEF) found that Australia is a world leader in retrofitting high-grade office buildings to slash their energy use and emissions.

Speaking at a conference in Sydney, the WEF’s Global Leadership Fellow Robin Ried explained that it was the NABERS rating program and mandatory disclosure laws that had put it ahead of other markets in terms of tenant education and demand for retrofits.

Recent studies have demonstrated that buildings with high NABERS ratings have higher rents, lower vacancies and increased returns compared to low or unrated buildings. The scheme has evolved over time to also include rating tools for Indoor Environment and Waste performance for offices, and ratings for shopping centres and hotels. Ratings of Commuter Transport for workplaces and Energy and Water for data centres will be released shortly.

In August 2011, NABERS rating scale was extended from 5 to 6 stars to accommodate the next generation of sustainable office buildings, the top performers of which are moving beyond the 5 star rating achievement.

In developing this extension, the NABERS national steering committee canvassed industry views on the best means of recognising market leading building performance. Feedback overwhelmingly supported an extension 64

of the scale. The new 6 star rating is awarded for a 50 percent reduction in greenhouse gas emissions or water use from 5 stars, and represents market leading performance. The move ensures that NABERS continues to offer an aspirational target, to drive and measure innovation and cater for future building technologies, while limiting the impact on the tool’s existing markets.

Since November 2010, the Commercial Building Disclosure Scheme has required office space over 2,000m2 to disclose NABERS Energy ratings at the point of sale or lease, introducing the benefits of performance ratings to potential tenants and purchasers, and further increasing demand for efficient buildings. Since then the number of commercial buildings rated with NABERS in Australia has further increased, as has the awareness of the importance of incorporating sustainability initiatives moving forward.

NABERS is immensely proud of what we have achieved, with our innovative and game-changing tools. We will continue supporting the industry, which depends on the impartial and transparent star rating scheme to understand and communicate the sustainability of its buildings.

Why rate a commercial building?

Increasingly, the market is being driven by tenant demand for high NABERS-rated premises, and owners’ desire to show the market they have efficiently run, high quality buildings and portfolios.

NABERS has for some time been a core component of the value consideration, and this has grown since the introduction of CBD last year.

As pressure on capital spending continues, Australian property owners are using NABERS data to cost effectively improve the environmental performance of their existing property assets using existing technology and fine tuning operational procedures.

For commercial building owners and tenants alike, being environmentally efficient can help their bottom line. A building that uses less water and power, costs less to run. A NABERS rating can also educate and assist owners in benchmarking improvements to the indoor environment of their buildings to generate higher productivity and enhanced wellbeing among employees. A building that creates less waste saves on waste charges, sets a positive example for a business

nabers

and its employees, and cuts pollution levels.

A NABERS rating tells you how efficiently a building is operating compared to other buildings in the market place and helps owners communicate their achievements. Shared knowledge encourages those hesitating to achieve higher levels of performance due to perceived cost and technological barriers.

NABERS has enabled the industry to more easily create a demonstrable business case for sustainability refurbishment based on more than just lower electricity costs and corporate reputation. Positive rental indicators can now also be incorporated.

The recent “Building Better Returns” project studied the financial performance of green office buildings in Australia.

Results showed that buildings with a high NABERS rating have lower vacancies and incentives paid to tenants, lower operating costs, and reduced yields; and have up to a nine percent higher value and three percent higher rents.

The Investment Property Databank Green Property Investment Index measures the impact on investment performance from green initiatives in the Australian property market. The report released 31 August found that 4 to 5 star NABERS rated assets outperform other buildings, have lower capital expenditure rates, and are considered less risky investments. Lower vacancy rates and higher rents indicate strong tenant demand for NABERS Energy 4 to 5 star rated buildings.

A 2009 study looking at low energy high-rise buildings by Sydney University’s Warren Centre found a direct correlation between simply obtaining a NABERS

Offices Shopping centres over 15,000 m2 GLAR Business hotels Homes

rating and a significant reduction in operational expenditure. The study also found that most buildings have the capacity to easily make energy savings equivalent to half a star rating – or about a 10 percent reduction in energy use - simply by streamlining and fine-tuning the existing systems in the building.

Highlighted too, were the innovative strategies being used to extract capital for environmental improvements from reduced maintenance or operating expenses, rather than from capital budgets.

The study found that in some cases a return on investment could be achieved within 12 months.

Reducing operational costs is crucial in the commercial building sector and the NABERS tools are essential to meeting this objective.

The NABERS rating tools – what are they and how do they work?

NABERS Energy assists owners and tenants to reduce energy use, energy costs and greenhouse emissions.

Implementing energy efficiency practices can save 20 percent to 40 percent on many buildings’ energy bills.

Energy ratings for offices are offered for just the base building or the tenancy, or as a whole building rating if the building is owner occupied.

A Base building rating is based on the energy intensity and greenhouse gas emissions of the building, excluding all energy use from tenants. It assesses greenhouse gas emissions associated with energy consumed in supplying central building services to lettable office areas and common spaces, such as common area lighting, lifts and base building air conditioning. A Tenancy rating is based on the amount of energy used per square metre of the tenancy associated with tenant lighting and equipment. When tenants’ and landlord’s energy use cannot be separated, a whole building rating is based on the intensity of the energy used and greenhouse gas emissions of the base building and tenancies. This includes all energy supplied to the building for the operation of the building and the occupants of the office space.

Energy

Water

Indoor Environment

Waste

4 4 4 4

4 4 4 4

4

4

65

NABERS

76 Berry St, North Sydney

66

nabers

Water NABERS Water ratings are used by property owners and managers to track the impact of water upgrades for public environmental reporting and as a KPI in many building management contracts.

As at June 2011, 38 percent of the national office market has been rated with NABERS Water and the take-up of this tool continues to grow.

NABERS Water for offices can only be used to rate the Base or Whole Building, as most water consumption in a building is influenced by the building owner.

Waste A NABERS Waste rating provides market recognition and a competitive advantage for buildings with low waste generation and high recycling rates. It encourages the minimisation of waste to landfill and allows building owners, managers or tenants to promote the waste and recycling performance of their building.

A NABERS Waste rating measures the amount of ‘materials generated’ (garbage, recyclables, re-use, etc) by a building and how much of that is diverted from landfill/ disposal.

Indoor Environment A NABERS Indoor Environment rating assesses the relationship between a building’s indoor environment quality and the health, comfort and wellbeing of its occupants by analysing: • Thermal comfort – which is directly linked to people’s productivity and is important for their comfort and wellbeing.

• Air quality – a major concern to building managers, tenants, and employees because it can impact the health, comfort, wellbeing and productivity of building occupants. Research shows a strong relationship between good indoor air quality and people’s performance at work.

• Acoustic comfort – which directly affect occupant satisfaction and productivity.

One research study shows that over 50

Matthew Clarke percent of occupants in office cubicles think that noise levels interfere with their ability to get their job done.

How to get a NABERS rating Obtaining a building’s first NABERS rating can take some time, so you should plan ahead. It will save you time and money if you compile all of the materials your assessor needs beforehand.

You’ll need to find an accredited NABERS assessor to conduct the rating. You can search the list of Accredited Assessors on the NABERS website at www.nabers.com.au.

You should ask the assessor what data will be necessary. As a rule of thumb, for an office Energy rating, the assessor will need to know the building type, location, size, number of tenants and tenancies and the number of people/computers. They will need to know the net lettable area, all bills for each energy source used for the preceding 12 months and details of any vacancies in the preceding 12 months.

They will also need permission to visit your building to determine the number of active computers and to conduct staff surveys to determine the hours of occupancy. ENDS END You can find more information on preparing for NABERS ratings on the NABERS website at www.nabers.com.au

67

ENGINEERING EXCELLENCE

if we could bottle it, we would.

As leading consulting engineers, we continue to turn our clients’ visions into award winning projects.

www.ndy.com