16
PEOPLE PROJECTS PROGRESS DECEMBER 2007 LEIGHTON INTERNATIONAL NEWS
peopLe projects progress DECEMBER 2007
Leighton internationaL
news
2 Leighton International News
CONTENTS 3 Long-term joint venture in Abu Dhabi
4 Modular construction has a great future
6 Thiess Leighton India signs HOA for major coal-mining project
7 US$290 million JW Marriott Hotel for Abu Dhabi
8 Plans to train 50,000 in construction
9 Leighton University professional stream program takes shape
10 Developing outstanding projects
11 Gulf projects show tremendous potential
12 Palm Springs starts towering over Gurgaon
14 Leighton Group’s A$24.5 billion work-in-hand – On track for 30% profit growth
15 More good news from UAE
Leighton appoints president for Indian operations
Leighton internationaL
news
Leighton International Limited is the Leighton Group company responsible for operations in Malaysia, Singapore, Sri Lanka, Indonesia, India and the Arabian Gulf.
The company focuses on building, civil & infrastructure, oil & gas, rail, environmental services, mining, process engineering, marine engineering and telecommunications.
The company’s annual revenue exceeds US$700 million and it employs over 2,500 staff across the region.
Leighton International is part of the Leighton
Group, Australia’s largest project development
and contracting group with revenue for 2007
exceeding US$10 billion.
Leighton International News is a quarterly
newsletter produced by Leighton International.
It provides information on developments,
projects and issues relative to Leighton
International, Leighton Holdings and associated
companies who operate across Asia and the
Arabian Gulf region.
If you would like to receive this
publication regularly, please email us
Published by: Leighton International, FZ LLC
Dubai Internet City, G/F Al-Sa Building,
Dubai, United Arab Emirates.
t: +971 4 304 6333
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www.leightonint.com
peopLe projects progress DECEMBER 2007
About Leighton International
Leighton International News 3
TDIC, the tourism development arm of the Abu Dhabi Tourism Authority (ADTA) and 51:49 joint venture partner with Gulf Leighton, is expected to generate annual revenue from a minimum of US$270 million in its first year to at least US$1.4 billion in the fifth.
“Gulf Leighton has repeatedly demonstrated long-term commitment to Abu Dhabi and the wider region in terms of investment – a factor which weighed heavily in its favour when selecting a joint venture partner. Once again, TDIC has demonstrated its own ability to forge partnerships with truly world-class providers, raising the benchmark for quality delivery,” said Lee Tabler, CEO of TDIC.
“The size, scope and complexity of some of the projects we are planning here require world-class contractors who prioritise environmental sustainability in the design and construction processes. Leighton is regarded as a world-leader in its field and is a good fit for what we are trying to achieve,” he added.
Initial projects covered by the agreement include the $US550 million Saadiyat Link, the Eastern Mangroves Hotel and the TDIC headquarters being built adjacent to Maqta Bridge, the main gateway to Abu Dhabi city.
“In line with TDIC’s overall ethos of employing best practices, this new joint venture will adhere to global standards
in human resources, health, safety and environment deployment,” said Tabler.
David Savage, managing director of Al Habtoor Engineering and Leighton International, said the agreement represented one of the Group’s most significant partnerships and that it would underwrite the company’s business in Abu Dhabi for the foreseeable future.
Long-term joint venture in
Abu DhAbi
Gulf Leighton and Tourism Development & Investment Company (TDIC), one of Abu Dhabi’s largest and most respected developers, have entered into a joint venture agreement to create a major new force on the UAE capital’s construction scene.
An artist’s impression of the Eastern Mangroves Hotel, Abu Dhabi.
An artist’s impression of the TDIC Headquarters, Abu Dhabi.
Back row (L-R): Graeme Dunn, general manager, Gulf Leighton; The Australian Ambassador to the United Arab Emirates, His Excellency Jeremy Bruer; Wal King, CEO, Leighton Holdings;
and (front) Lee Tabler, CEO, TDIC; and David Savage, managing director, Leighton International.
4 Leighton International News
Manufacturing the steel framed floors at the plant. The site supervision team at work.Assembling standing sandwich wall panels at the manufacturing plant.
An overview of the Tangguh LNG camp during the day.
moDuLAr construction hAs A
greAt future
Leighton International News 5
The Tangguh LNG camp at night.
Modular building is a method of construction by which a building ranging from 50 to 50,000 square metres (or more) is manufactured off-site under controlled conditions, transported to a site in a ‘flat pack’ or in three dimensional sections, and then installed on a foundation.
Typically, buildings are anywhere from 40% to 80% complete before they leave the manufacturing plant.
Modular construction has a largely untapped potential in Asia, making it very attractive to an organisation such as Leighton to offer this to companies which often operate in remote or climatically challenging environments.
The flexibility of modular construction was shown recently in the company’s joint venture construction of the Tangguh LNG Camp’s facilities in Irian Jaya, Indonesia. This US$63 million project for Kellog Brown & Root, Japanese Gas Corporation and Pertafenikki Engineering (KJP) involved building a temporary camp to house some 7000 people.
The Tangguh LNG project was undertaken by the Leighton ATCO Joint Operation (LAJO); an initiative between Leighton International and ATCO Structures, which has been manufacturing, selling and leasing modular buildings since 1947.
The success of the joint venture has resulted in LAJO being retained to serve the entire Leighton International footprint across Asia and the Arabian Gulf region from its base in Jakarta, Indonesia.
LAJO will provide a complete range of products and services; from site offices to full turnkey camps for the construction, mining, oil and gas industries; also emergency relief centres. Its primary focus is on turnkey solutions, right through to fit-outs of the buildings, including kitchens, laundries and much more.
There is a great scope for customisation in modular buildings. In fact, clients can virtually custom design their own requirements with the heights of ceilings, thickness of walls and other dimensions changed as needed.
Modular buildings are also portable, which makes them easy to dismantle and relocate, as required.
With the rapid and large-scale development now taking place across Asia and the Gulf region, this form of modular construction certainly has a great future.
The roots of modular building can be traced back over 100 years, but advances in trends and technology over the past decade have propelled it forward, making it one of the most flexible and efficient construction concepts available today.
moDuLAr construction hAs A
greAt future
6 Leighton International News
thiess Leighton inDiA signs hoA for mAjor
coAL-mining project
The HOA was signed on 21 November in the presence of New South Wales’ Premier Morris Iemma, who was leading a business delegation to New Delhi and Mumbai.
The Abhijeet Group is emerging as one of the fastest growing private sector organisations in India, with a significant presence in the core sector industries of power, mining, roads, steel and ferro alloys.
This new mining project, in which TLI hopes to undertake a major proportion of the work, involves the development and 20-year operation of a greenfield open-cast coal mine at the North
Karanpura coalfield within the state of Jharkhand.
The mine is forecast to reach an ultimate capacity of 6.75 million tonnes a year and its output will be used for Abhijeet’s steel plant and its planned ‘mine-mouth’ power station project.
Work on the project will start early in 2008 with development of the mine infrastructure and construction of the coal handling plant and conveyors.
Manoj Jayaswal, chairman of the Abhijeet Group signed the Heads of Agreement with Bruce Munro, director, Thiess Leighton India.
Mr Jayaswal said that he had inspected several of the Leighton Group’s mine operations in Australia and Indonesia and had selected Thiess Leighton because of its world-class capability and experience of mining in complex open-cast pits.
“We look forward to working closely with our new mining partner in this and potentially other ventures,” he said.
Currently, TLI is establishing offices in New Delhi and Kolkata to focus on mine logistics, planning and servicing projects in North Eastern India.
India’s Abhijeet Group has signed a Heads of Agreement (HOA) with Thiess Leighton India (TLI) to initiate a A$1.5 billion coal-mining project.
From L-R: Manoj Jayaswal, chairman, Abhijeet Group; Hon. Morris Iemma, Premier of New South Wales and Bruce Munro, director, Thiess Leighton India.
Leighton International News 7
thiess Leighton inDiA signs hoA for mAjor
coAL-mining project
The project, for Abu Dhabi National Hotels, is the first contract since the merger, for Al Habtoor Engineering. UAE-based Abu Dhabi National Hotels is the country’s leading diversified hotel, tourism, transport and catering group.
The project involves the construction of a 10-storey hotel complete with a range of dining and convention facilities, 88 chalets, a marine village, staff accommodation, a spa and a lagoon. Work is already under way and the project is due for completion in January 2010.
David Savage, managing director of Leighton International, said that the new contract highlighted the opportunities available to the company in the region since the merger with Al Habtoor.
“Al Habtoor has an unrivalled track record in the region for these types of projects and is considered the ‘contractor of choice’ for high quality building work,” he said.
“This project brings Leighton International’s work-in-hand to over US$2.4 billion, a new record. Our growth is only constrained by our capacity to undertake the work
available. However, our new partnership with Al Habtoor provides us with a significant increase in capacity.
“We are now more able to capitalise on the many opportunities in the Arabian Gulf, particularly in the United Arab Emirates,” David Savage said.
“The construction opportunities available in this region are enormous. In Abu Dhabi alone, over the next four to five years, more than $120 billion will be invested in infrastructure projects.
“The outlook for us in the Arabian Gulf is very positive, and we expect to secure a number of new projects here in the next few months,” he said.
Just six weeks after the merger of Leighton International’s Gulf operations with Al Habtoor Engineering, the Al Habtoor Leighton Group has been awarded a US$290 million (A$310 million) contract to construct a new 5-star JW Marriott Hotel in Abu Dhabi.
us$290 miLLion jW mArriott hoteL for
Abu DhAbiAn artist’s impression of the waterfront
at the JW Marriott Hotel, Abu Dhabi.
Artist’s impressions of the JW Marriott Hotel, Abu Dhabi.
8 Leighton International News
Somaiya is a non-governmental organisation that manages 35 educational institutions with 27,000 students in Mumbai alone. This new program will see many under-privileged youths receive construction skills training as part of Leighton University, a trades training and education program developed by Leighton International.
“With India experiencing an unprecedented boom in construction, Leighton is keen to upgrade skills and expand its workforce to cater for the increasing levels of infrastructure construction across India. Somaiya’s institutions will provide training to suitable candidates,” said Vineet Mohan, president of Leighton International in India.
“Our initiative will create a pipeline for talent development and impart training
to the young and under-privileged; and particularly provide suitably trained skilled and semi-skilled workers to Leighton projects.
“As the Indian construction industry is growing rapidly, we feel it its timely to set up this program while helping to grow and groom people both for the organisation and the nation. We are pleased to begin this partnership with Somaiya,” he said.
Each of the skills training programs will last between four and six months. Leighton will then employ the trainees on its building and construction projects.
Training will be provided at centres located in Vidyavihar and Nareshwadi. Customised to the standards of the Technical and Further Education scheme of Western
Australia (TAFEWA), the programs will prepare trainees for real-life experiences on construction sites,” said program manager Thomas McGuire.
Leighton’s new collaboration with Somaiya complements an existing relationship with Dynamic Staff Services (DSS) in Delhi , which has trained more than 500 people for Leighton since July this year.
In addition to teachers from Somaiya, Leighton will nominate a number of experienced employees to jointly conduct skill training classes.
“This demonstrates Leighton’s commitment to the success of this program and ensures that trainees are ‘Leighton ready’ to work at a variety of projects,” Thomas said.
Leighton International has taken another step forward in its program to train approximately 50,000 skilled vocational workers for the construction industry; signing an agreement with Somaiya to provide construction skills training.
pLAns to trAin 50,000 in
construction
Leighton International News 9
Leighton International is growing rapidly across its region and needs increasing numbers of ‘Leighton ready’ professionals to support and manage its projects.
To meet this need, under a collaborative agreement with Australia’s Deakin University, a number of Indian institutions of higher education will now offer a specially developed Leighton International curriculum to supplement their existing final two years of undergraduate programs.
On completion, Leighton University graduates will be awarded two credits in Deakin’s Graduate Certificate in Construction Management. This post graduate program has a four credit requirement, so candidates from the Leighton University initiative, may complete the remaining two credits whilst in the employ of Leighton International.
Under the agreement, Deakin will provide the program as a core component of the Leighton University initiative. It will design and develop the program for up to 25 students per intake, which starts this month. Additionally, Deakin will design and develop the ‘train the trainer’ workshop.
The specific areas to be covered in this program include health and safety; quality management and pre-contract processes; construction methodology, design and technology; project planning, implementation, management and process controls as well as project economics and finance.
The enrolment for the first intake is now closed and there is a waiting list for the next intake in May 2008. This demonstrates the enthusiasm amongst engineering students in India for this Leighton-designed course.
Leighton University professionaL stream program takes shape
The modules of this training program include:
• health and safety awareness
• planning and organising work
• workplace communication
• measurements and calculations
• basic levelling procedures
• handling concrete materials
• brickwork, plastering and concrete finishing
• carpentry and formwork construction skills
• erection of scaffolding systems
“Leighton’s initiative to undertake more direct employment represents a significant change in the construction industry in India, the Middle East and South East Asia, where multiple layers of subcontracting are the norm,” said Vineet Mohan.
“Providing a steady stream of skilled trades people is vital for the company and the Leighton University program will support the recruitment and development of our future workforce through rewarding and contemporary learning programs,” he said.
pLAns to trAin 50,000 in
construction The new Leighton University trainees together with Somaiya and Leighton International management at the launch of the training centre.
10 Leighton International News
DeveLoping outstAnDing projects
In the past few months, Al Habtoor has secured a strong stream of significant projects in the Gulf region, many of them located in prestige locations and, sometimes, presenting significant challenges. These include:
Al Ghurair CityAmong the highest profile projects is the expansion of Al Ghurair City. Opened in 1981, Al Ghurair was the first shopping mall to be built in the Middle East and is now among the top five destinations visited by tourists in Dubai.
Located on Riqqa Road in the heart of Deira, the new 218,000 square metres expansion will add three retail levels and two 20-storey towers to the mall – one of which will house a hotel while the other is a residential building. There will also be three levels of underground parking. The value of this work is around AED 1 billion.
ADNEC contractAnother key project is the addition of a feature tower for the Abu Dhabi National Exhibitions Company (ADNEC). This follows Al Habtoor Engineering’s recent construction of the much-acclaimed exhibition halls at the centre, which were completed in record time and claimed by ADNEC to be the most modern exhibition centre in the world.
The lower 16 floors of the new tower building will be used for offices, while the upper 16 will be a hotel. With a projected construction time of about two years, the building will have a total floor area of 50,000 square metres, and is expected to have a value of around AED 850 million on completion.
Al Habtoor Engineering's unrivalled track record in the construction of iconic buildings in the UAE has led to awards for a number of major new projects.
An artist’s impression of the feature tower at the Abu Dhabi National Exhibitions Company.
Leighton International News 11
Dubai and Abu Dhabi in particular are a far cry from the small seaports that still basked almost undisturbed less than two decades ago.
In September this year, Leighton International merged its operations in the Arabian Gulf with Al Habtoor Engineering, taking a 45% stake in the new, combined entity.
Al Habtoor is one of the leading construction groups in the Gulf region – constructors of world icons such as the Burj al Arab and Dubai International Airport.
The merger provides Leighton with a significant increase in capacity, enabling the company to fully capitalise on the numerous opportunities in the Arabian Gulf market.
The United Arab Emirates are rewriting the pages of architectural and civil engineering history with their vast re-sculpting of the landscapes, turning the sands of their deserts into some of the most expensive real estate on earth. It is also the location of some of the most amazing structures.
gULf projects show tremenDoUs potentiaL
Iris Bay
An artist’s impression of Iris Bay, Dubai.
Iris Bay will be a new landmark in Dubai. It was awarded to Al Habtoor Engineering by Sheth Estate International and is worth an estimated AED 255 million.
The architects are Atkins; designers of the famed Burj Al Arab, Zabeel Park, Jumeirah Beach Hotel and several other outstanding buildings in the region.
The distinctive 40-storey tower has been described as “a one-of-a-kind architectural marvel with an awe-inspiring edifice and impressive features”.
Located in the Business Bay area, in architectural terms, this unique building has been designed to represent the shape of a half moon – two identical double-curved pixelated shells. These shells are
rotated and cantilevered over the podium, which is primarily for parking. The rear elevation comprises seven zones of rotated glass.
Despite its very innovative design, the architects have managed to create square interiors, eliminating the space wastage that often occurs with shaped buildings.
Importantly, the Iris Bay tower, which sits on a four-storey perforated podium, will feature a wide range of passive and active environmental features.
12 Leighton International News
pALm springsstArts toWering over gurgAon
The Palm Springs residential development will be one of India’s new-era of luxury community-living projects. It is set in the dramatic and spectacular surroundings at Gurgaon – one of the major cities in the state of Haryana and within easy reach of Delhi.
Right: Ongoing construction at the project site.
Leighton International News 13
pALm springsstArts toWering over gurgAon
This prestigious development is one of a number of integrated projects which Emaar MGF is targeting at the mid to luxury market, with the allure that residents can ‘live, work and play’ in the same location.
Construction, which began in May this year, closely followed a joint venture agreement between Emaar MGF Land – India’s leading developer and Leighton International.
The Palm Springs project, which extends over 19 acres and includes 300 apartments and 100 luxury villas, has been abuzz with activity since its rapid mobilisation in May. Significant progress has been made onsite. Six 17-storey reinforced concrete towers are now being constructed concurrently.
“The journey to date has had its challenges, including the integration of the new management team and a workforce without the appropriate skills,” said site manager Douglas McPherson.
The Palm Springs site has an added dimension that is different from most other international sites. One aspect is the adjoining purpose-built labour camp, which has more than 900 workers living there. The challenge is the logistics of
cleaning, feeding and maintaining the camp.
There are also other challenges created by ‘non builder-friendly’ design constraints such as the excessive number of slab beams and the disproportionate column sizes presenting challenging logistics and temporary work arrangements.
“On a positive note, over the last three months, to supplement the local work force, suitably trained semi-skilled and skilled workers from the Leighton University program are being directly employed. This is a positive move and now we have more than 150 Leighton University trades-stream trainees nearing completion of their probation period,” Douglas said.
Apart from being introduced to life on a Leighton construction site, the trainees are also exposed to safety and quality procedures on site. To date, at least 20 Leighton University trades-stream trainees have won safety awards on-site.
The team is confident that this will be another quality project by Leighton delivered on time without compromising on safety and quality.
One of the tower cranes at the Palm Springs project site.
14 Leighton International News
Chief executive officer, Leighton Holdings, Wal King.
Chairman David Mortimer told shareholders that the highlights of the financial year were:
• an excellent financial performance;
• significant new strategic initiatives progressed;
• great returns for shareholders;
• dividends increased by 67% to 110 cents per share and
• an average return on shareholders funds of 36.7% (ranking the company 15th out of the top 100 listed Australian companies).
“Total revenue, including joint ventures, was up by 19% to A$11.9 billion. The major contributors to the 2006/07 result have again been construction activity from a number of large Australian infrastructure projects, contract mining in Australia and Asia, and another strong property development performance,” he said.
He also reported that the new financial year had started well for the Group with total revenue for the first quarter to 30 September 2007 up 9% to A$3.1 billion.
“This generated an operating profit after tax (unaudited) of A$98 million, an increase of 30% on the prior first quarter. These first quarter results are very pleasing and in line with our expectations,” he said.
Chief executive officer Wal King said that the Leighton Group’s core markets were all running strongly in the company’s favour and should continue to do so for the foreseeable future.
“We are keen to expand our businesses in the growing markets of Asia and the Gulf region. Our investment in Al Habtoor Engineering, one of the leading construction contractors in the region, brings significant capacity to enable us to fully capitalise on the opportunities in the Gulf market,” he said.
“The sustained strength of the Australian infrastructure market, complemented by the ongoing demand for Australia’s resources, provide support for the Group’s construction and contract mining activities.
“Globally, demand for raw materials is forecast to remain at very high levels into the foreseeable future, particularly for coal and iron ore supporting the outlook for contract mining. The Group is the largest contract miner in the world and we want to further expand our international contract mining operations,” he said.
Leighton Holdings has recorded a 63% increase in profit to achieve an ‘all-time record’ profit of A$450 million.
Leighton group’s A$24.5 biLLion Work-in-hAnD – on trAck for 30% profit groWth
Leighton International News 15
Leighton appoints presiDent for inDian operations
He joins Leighton from General Electric in Singapore, bringing with him more than 16 years of leadership in quality management, sales, business development and general management.
“Vineet has a fine track record and impressive credentials and we look forward to seeing his positive influence on our business,” said David Savage, managing director, Leighton International.
“This is an exciting time to be in India, and particularly when construction and infrastructure development are undergoing a boom unlike any we have seen before,” Vineet said.
“I am excited at the prospect of working with a multi-national contractor and project developer such as Leighton International, especially in a country which is seeing an unprecedented need
for construction and infrastructure development.
“I am delighted to be joining an organisation which has very quickly established itself as the leading international contractor in the country. The opportunities for Leighton here are extensive, be it in buildings, civil infrastructure, mining or oil & gas. I look forward to being a part of the company’s ongoing expansion in India,” he said.
Leighton International’s operations in India comprises of Leighton India, Leighton Construction India Pvt Ltd and Thiess Leighton India.
Leighton India commenced operations in 1998, and India is a key market for the organisation.
Vineet Mohan has been appointed by Leighton International as president of its operations in India.
The JAFZA convention centre complex to be constructed in Dubai will feature a twin tower convention centre, a food court, a 33-storey office complex and a seven-storey hotel.
The other contract, worth US$130 million, is to construct two four-star hotels for Aldar on Yas Island in Abu Dhabi. This project comprises two hotels – one of 400 rooms and 30 suites; the second with 200 rooms and 10 suites. They will also feature ballrooms, numerous function rooms, food and beverage outlets, pools and other recreational facilities.
Construction is already under way and it will be completed in September 2009.
“These new contracts are further evidence of the tremendous opportunities for growth for Leighton International in the Arabian Gulf region, and the UAE in particular,” said David Savage, managing director of Leighton International.
Two contracts, including a US$520 million contract for the construction of the new Jebel Ali Free Zone Authority (JAFZA) convention centre in Dubai, have been secured by Leighton International through Al Habtoor Engineering.
more gooD neWs from uAe
Vineet Mohan, president, Leighton International – India.
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