LEIGHTON INTERNATIONAL’S MAGAZINE … · LEIGHTON INTERNATIONAL’S MAGAZINEPERSPECTIVE01 ISSUE...

01PERSPECTIVELEIGHTON INTERNATIONAL’S MAGAZINE

ISSUE 06 � OCTOBER-DECEMBER 2010

33 Years in Malaysia

Focus on Singapore

New Projects in New Regions

BUILDING ON A STRONG TRACK RECORD

BIG OPPORTUNITIES IN A COMPETITIVE MARKET

TWO OFFSHORE PROJECT WINS

02 03

Since 1975 our unique combination

of local knowledge and extensive

international experience has made us

the international contractor of choice

in the countries in which we operate.

We operate in Malaysia, India,

Singapore, Sri Lanka and Brunei, and

are expanding further across Africa and

Central Asia. We employ people across

four operating divisions: India, Malaysia,

Offshore and New Markets (including

Africa and Central Asia).

We focus on five market segments:

Leighton International is a subsidiary

of Australia’s largest project development

and contracting group, the Leighton

Group. We benefit from our ability to call

LEIGHTON INTERNATIONAL IS ONE OF THE LEADING CONTRACTORS AND PROJECT DEVELOPERS IN ASIA AND INTERNATIONALLY IN THEOFFSHORE MARKET. OUR STRENGTH IS OUR ABILITY TO DEVELOP INNOVATIVE, PRACTICAL SOLUTIONS FOR OUR CLIENTS

upon the experience and technical

and financial expertise of the Group.

Perspective is a quarterly publication

produced by Leighton International. It

provides information on developments,

projects and issues relating to Leighton

International, Leighton Holdings and

associate companies.

If you would like to receive this

publication regularly, please email us

at [email protected] �

Published by:

Leighton International

13/F Menara Multi Purpose

8 Jalan Munshi Abdullah

50100 Kuala Lumpur

Malaysia

t: +60 3 2035 1688

f: +60 3 2693 4388

[email protected]

www.leightonint.com

All values are in US dollars unless otherwise indicated.

Introduction 04

In Brief 05

Overview Maintaining a Strong 06 Market Presence

Industry News Malaysia at a Crossroads 07 Leighton Returns to Singapore 08

Profiles Working in Singapore 10 New Starter 11

Snapshot 12

Profiles Local Knowledge, 14 International Experience The Leighton Way 15

Project Updates Northern Double Track 16 Labuan Water Pipeline 17

New Projects Tanzania SPM Project 18 Iraq Crude Oil Export 19 Expansion Project

Company News Leighton HSEC Award 2010 20 Quarterly Results 22

CONTENTS

16

2008




Focus on Singapore





Boat Quay

Singapore

02 03

Since 1975 our unique combination

of local knowledge and extensive

international experience has made us

the international contractor of choice

in the countries in which we operate.

We operate in Malaysia, India,

Singapore, Sri Lanka and Brunei, and

are expanding further across Africa and

Central Asia. We employ people across

four operating divisions: India, Malaysia,

Offshore and New Markets (including

Africa and Central Asia).

We focus on five market segments:

Leighton International is a subsidiary

of Australia’s largest project development

and contracting group, the Leighton

Group. We benefit from our ability to call

LEIGHTON INTERNATIONAL IS ONE OF THE LEADING CONTRACTORS AND PROJECT DEVELOPERS IN ASIA AND INTERNATIONALLY IN THEOFFSHORE MARKET. OUR STRENGTH IS OUR ABILITY TO DEVELOP INNOVATIVE, PRACTICAL SOLUTIONS FOR OUR CLIENTS

upon the experience and technical

and financial expertise of the Group.

Perspective is a quarterly publication

produced by Leighton International. It

provides information on developments,

projects and issues relating to Leighton

International, Leighton Holdings and

associate companies.

If you would like to receive this

publication regularly, please email us

at [email protected] �

Published by:

Leighton International

13/F Menara Multi Purpose

8 Jalan Munshi Abdullah

50100 Kuala Lumpur

Malaysia

t: +60 3 2035 1688

f: +60 3 2693 4388

[email protected]

www.leightonint.com

All values are in US dollars unless otherwise indicated.

Introduction 04

In Brief 05

Overview Maintaining a Strong 06 Market Presence

Industry News Malaysia at a Crossroads 07 Leighton Returns to Singapore 08

Profiles Working in Singapore 10 New Starter 11

Snapshot 12

Profiles Local Knowledge, 14 International Experience The Leighton Way 15

Project Updates Northern Double Track 16 Labuan Water Pipeline 17

New Projects Tanzania SPM Project 18 Iraq Crude Oil Export 19 Expansion Project

Company News Leighton HSEC Award 2010 20 Quarterly Results 22

CONTENTS

16

2008




Focus on Singapore





Boat Quay

Singapore

04 05

The strategic

decision for

Leighton

International to

expand our

operations back to

a familiar market,

Singapore, was made early this year as

the country steadily bounces back from

the global financial crisis following the

Singaporean Government’s robust

economic plans. The forecast for the

local construction sector is an annual

turnover of approximately US$20 billion

per annum.

Led by Brian Ticcioni, Area Manager

of our Singapore office, the Leighton

team is expanding and is already

capitalizing on the economic growth of

the island state with a number of project

opportunities being pursued (more on

page 8).

Elsewhere in South East Asia, the

Leighton Malaysia team is maintaining

our strong market presence with three

significant projects well underway, the

Northern Electrified Double Track project

between Ipoh and Padang Besar, a site

remediation project and the technically

challenging Labuan Water Pipeline

project that was recently completed

ahead of schedule (see project updates

on page 16). There are also a range of

construction, mining and marine projects

being pursued.

Our guest contributor for this South

East Asian issue of Perspective is

Michael Halpin, Chairman of the

Malaysia Australia Business Council. He

provides an overview on the Malaysian

market conditions and Government

initiatives, outlining the knock on effect

of these programmes on the local

construction industry, and possible

opportunities for Leighton (see page 7).

In the last quarter, Leighton Offshore

has successfully secured two SPM

installation projects in new regions

expanding Leighton International’s global

footprint. Leighton Offshore was

awarded a US$733 million EPC contract

by Iraq’s South Oil Company to install

three single point moorings (SPMs) and

120 kilometres of 48-inch pipelines. This

is an important project in Iraq’s strategic

energy development program.

The Gulf win comes closely behind the

recent US$66 million contract awarded

by the Tanzania Ports Authority to install

a SPM and pipelines in Dar Es Salaam.

Both contracts build on Leighton

Offshore’s SPM installations market

leader position.

The remainder of 2010 will continue to

be busy with ten projects underway and

several major tenders in the pipeline. �

DAVID SAVAGECHIEF OPERATING OFFICER,

LEIGHTON HOLDINGS

BOARD VISITS INDIA

TUNNEL PROJECTThe Leighton International

Board held their quarterly

board meeting at the

Mumbai offices in August

and visited the Chenani road

tunnel project in Jammu.

The Board was briefed on

the scope and challenges of

this major tunnelling project

for the India business.

NEW MARKETS, NEW OPPORTUNITIESLeighton New Markets is currently experiencing an exciting period

in the establishment of the new business. The team is currently

preparing a bid for a major mining project in Botswana, as well as

examining other infrastructure project opportunities in Africa.

STEALTH ARRIVES IN AUSTRALIA Leighton brings its internationally gained experience in subsea

pipelay back into Australia. Its barge, Leighton Stealth, arrived in

Dampier, Western Australia, in October to start work on the Devil

Creek Development Project.

INDUSTRY RECOGNITION Leighton has been accepted

as a member of the International

Marine Contractors Association

(IMCA). IMCA is a respected

Association promoting

operational efficiency, quality,

health, safety, environmental

and technical standards. In

September, Leighton Offshore

received approval from the

National Offshore Petroleum

Safety Authority for the Stealth

Safety Case. This is a landmark

achievement as the safety case

was one of the first to be done

in-house by an organisation

and effectively demonstrates

Leighton’s “can do” approach

to achieving high standards

of performance.

ONGC PRP-2 SEASON THREE KICKS OFF The third phase of the Pipeline Replacement Project for Oil and Natural Gas Corporation India (ONGC) commenced in October following two successful seasons for Leighton. ONGC is Asia’s largest oil and gas exploration and production company and contributes over 78% of India’s oil and gas production.

STEALTH ARRIVES IN AUSTRALIA

IN BRIEF

LEIGHTON MYNX UPGRADEDLeighton’s construction vessel Mynx was

relaunched in September following its

successful upgrade. The upgrade

covered the accommodation,

modifications to bring the construction

vessel to full compliance with the ISPS

code and improvements to suit latest

class requirements, operational and client

needs. She is currently in North-West

India undertaking works associated with

the Mangala Pipeline Project for Cairn

Energy India Ltd.

INTRODUCTION IN BRIEF

� Your feedback is important to us, and I encourage you to send any comments

you may have on this issue of Perspective, or suggestions for future issues,

to [email protected].

DAVID STEWART TO SUCCEED WAL KING LEIGHTON HOLDINGS ANNOUNCED WAL KING WILL RETIRE AFTER 23 YEARS AS CHIEF EXECUTIVE OFFICER AND MANAGING DIRECTOR EFFECTIVE 1ST JANUARY 2011. DAVID STEWART (PICTURED), CURRENTLY CHIEF OPERATING OFFICER OF LEIGHTON HOLDINGS, WILL ASSUME THE ROLE OF CEO EFFECTIVE FROM THAT DATE.

LEIGHTON INTERNATIONAL REFOCUSSED ON SINGAPORE

THIS YEAR, A MARKET THE GROUP IS COMMITTED TO

GROWING. WE WILL BE INTRODUCING OUR SINGAPORE

OPERATIONS IN THIS ISSUE ALONG WITH AN OVERVIEW

ON LEIGHTON MALAYSIA AND THEIR WORK IN PROGRESS.

INTRODUCTION

City Skyline Singapore

04 05

The strategic

decision for

Leighton

International to

expand our

operations back to

a familiar market,

Singapore, was made early this year as

the country steadily bounces back from

the global financial crisis following the

Singaporean Government’s robust

economic plans. The forecast for the

local construction sector is an annual

turnover of approximately US$20 billion

per annum.

Led by Brian Ticcioni, Area Manager

of our Singapore office, the Leighton

team is expanding and is already

capitalizing on the economic growth of

the island state with a number of project

opportunities being pursued (more on

page 8).

Elsewhere in South East Asia, the

Leighton Malaysia team is maintaining

our strong market presence with three

significant projects well underway, the

Northern Electrified Double Track project

between Ipoh and Padang Besar, a site

remediation project and the technically

challenging Labuan Water Pipeline

project that was recently completed

ahead of schedule (see project updates

on page 16). There are also a range of

construction, mining and marine projects

being pursued.

Our guest contributor for this South

East Asian issue of Perspective is

Michael Halpin, Chairman of the

Malaysia Australia Business Council. He

provides an overview on the Malaysian

market conditions and Government

initiatives, outlining the knock on effect

of these programmes on the local

construction industry, and possible

opportunities for Leighton (see page 7).

In the last quarter, Leighton Offshore

has successfully secured two SPM

installation projects in new regions

expanding Leighton International’s global

footprint. Leighton Offshore was

awarded a US$733 million EPC contract

by Iraq’s South Oil Company to install

three single point moorings (SPMs) and

120 kilometres of 48-inch pipelines. This

is an important project in Iraq’s strategic

energy development program.

The Gulf win comes closely behind the

recent US$66 million contract awarded

by the Tanzania Ports Authority to install

a SPM and pipelines in Dar Es Salaam.

Both contracts build on Leighton

Offshore’s SPM installations market

leader position.

The remainder of 2010 will continue to

be busy with ten projects underway and

several major tenders in the pipeline. �

DAVID SAVAGECHIEF OPERATING OFFICER,

LEIGHTON HOLDINGS

BOARD VISITS INDIA

TUNNEL PROJECTThe Leighton International

Board held their quarterly

board meeting at the

Mumbai offices in August

and visited the Chenani road

tunnel project in Jammu.

The Board was briefed on

the scope and challenges of

this major tunnelling project

for the India business.

NEW MARKETS, NEW OPPORTUNITIESLeighton New Markets is currently experiencing an exciting period

in the establishment of the new business. The team is currently

preparing a bid for a major mining project in Botswana, as well as

examining other infrastructure project opportunities in Africa.

STEALTH ARRIVES IN AUSTRALIA Leighton brings its internationally gained experience in subsea

pipelay back into Australia. Its barge, Leighton Stealth, arrived in

Dampier, Western Australia, in October to start work on the Devil

Creek Development Project.

INDUSTRY RECOGNITION Leighton has been accepted

as a member of the International

Marine Contractors Association

(IMCA). IMCA is a respected

Association promoting

operational efficiency, quality,

health, safety, environmental

and technical standards. In

September, Leighton Offshore

received approval from the

National Offshore Petroleum

Safety Authority for the Stealth

Safety Case. This is a landmark

achievement as the safety case

was one of the first to be done

in-house by an organisation

and effectively demonstrates

Leighton’s “can do” approach

to achieving high standards

of performance.

ONGC PRP-2 SEASON THREE KICKS OFF The third phase of the Pipeline Replacement Project for Oil and Natural Gas Corporation India (ONGC) commenced in October following two successful seasons for Leighton. ONGC is Asia’s largest oil and gas exploration and production company and contributes over 78% of India’s oil and gas production.

STEALTH ARRIVES IN AUSTRALIA

IN BRIEF

LEIGHTON MYNX UPGRADEDLeighton’s construction vessel Mynx was

relaunched in September following its

successful upgrade. The upgrade

covered the accommodation,

modifications to bring the construction

vessel to full compliance with the ISPS

code and improvements to suit latest

class requirements, operational and client

needs. She is currently in North-West

India undertaking works associated with

the Mangala Pipeline Project for Cairn

Energy India Ltd.

INTRODUCTION IN BRIEF

� Your feedback is important to us, and I encourage you to send any comments

you may have on this issue of Perspective, or suggestions for future issues,

to [email protected].

DAVID STEWART TO SUCCEED WAL KING LEIGHTON HOLDINGS ANNOUNCED WAL KING WILL RETIRE AFTER 23 YEARS AS CHIEF EXECUTIVE OFFICER AND MANAGING DIRECTOR EFFECTIVE 1ST JANUARY 2011. DAVID STEWART (PICTURED), CURRENTLY CHIEF OPERATING OFFICER OF LEIGHTON HOLDINGS, WILL ASSUME THE ROLE OF CEO EFFECTIVE FROM THAT DATE.

LEIGHTON INTERNATIONAL REFOCUSSED ON SINGAPORE

THIS YEAR, A MARKET THE GROUP IS COMMITTED TO

GROWING. WE WILL BE INTRODUCING OUR SINGAPORE

OPERATIONS IN THIS ISSUE ALONG WITH AN OVERVIEW

ON LEIGHTON MALAYSIA AND THEIR WORK IN PROGRESS.

INTRODUCTION

City Skyline Singapore

06 07INDUSTRY NEWS

“Leighton will still have to compete with other large international contractors such as those from China. The Chinese in particular are able to quote very aggressive prices, however Leighton with its proven track record of project delivery, high standards of site safety and adherence to international environmental standards is well placed to secure some of these mega projects.”

“We have to retain and develop our ability to re-engineer conventional designs, introduce the latest methods of construction, and apply project delivery mechanisms that generate cost, schedule and delivery efficiencies.”

OVERVIEW

HEADING LEIGHTON MALAYSIA, SINGAPORE AND BRUNEI; GENERAL MANAGER

TONY HARVEY REVIEWS PAST ACHIEVEMENTS AND CURRENT TARGETS SET AGAINST

A CHALLENGING SOUTH EAST ASIAN MARKET.

MICHAEL HALPIN, MALAYSIA AUSTRALIA BUSINESS COUNCIL CHAIRMAN, PROVIDES

AN UPDATE ON THE GOVERNMENT OF MALAYSIA’S STRATEGIES FOR THE LOCAL

BUILDING INDUSTRY AND POTENTIAL BUSINESS OPPORTUNITIES FOR LEIGHTON.

MAINTAINING A STRONG MARKET PRESENCE

MALAYSIA AT A CROSSROADS

This is our 33rd year

of business in Malaysia

having commenced

our involvement in

1977 with the Labuan

Flour Mill Project in

Sabah, East Malaysia.

The key to our success has been to

maintain our competitive edge ahead of

maturing local contracting companies

and this will continue to be the challenge.

In this regard, we have to retain and

develop our ability to re-engineer

conventional designs, introduce the

latest methods of construction, and

apply project delivery mechanisms that

generate cost, schedule and delivery

efficiencies.

In terms of technical ability, there

is very little that we cannot do in our

market sectors. We have a team of

personnel with the ability to respond to

technically challenging and financially

complex deals. Therein lies our strength,

our people. Ultimately, we need to

capitalise on our flexibility, versatility

and expertise to remain relevant in a

market that is becoming increasingly

competitive.

WORKING IN COLLABORATION

Currently, we are undertaking the

largest rail works project undertaken in

Malaysia that involves 760 kilometers

of track length from Ipoh to Padang

Besar, which will enable train travel at

speeds of 160 kilometers per hour from

Kuala Lumpur to the Thai border. Having

completed the 400 kilometers track

Malaysia has come

through the most

recent global

economic crisis in far

better condition than

many of the worlds

developed nations.

Never the less, whilst putting in place

measures to keep Malaysia from sinking

into a recession, the government under

the leadership of Prime Minister Dato’

Sri Mohd Najib Tun Abdul Razak also

designed various strategies to lift

Malaysia out of the Middle Income

Trap in which its population has

found themselves.

Malaysia is now at a crossroads.

Its planned route leading to High

Income Nation status with the other

routes leading to, at best economic

mediocrity. Utilising the government’s

planned strategies of, One Malaysia, the

Government Transformation Programme,

the New Economic Model and the

10th Malaysia Plan, the Prime Minister

should be able to reach his chosen

destination for the country with his

ministers full support and with effective

implementation of the government’s

policies by the civil service.

How does this benefit the Malaysian

construction industry? Under the 10th

Malaysia Plan there is a need to develop

World Class Infrastructure which will

where appropriate be developed

using the Public-Private Partnership

(PPP) model. There is also a need to

integrate water supply and sewerage

systems and to expand the availability

of electricity into outlying rural areas and

the continued development of Malaysia’s

oil field services sector. These should

give rise to construction project large

and small to achieve these targets.

What is the role for construction

companies such as Leighton Malaysia?

Whilst many of the likely projects can

be undertaken by local construction

companies, some of the projects

are likely to be very large and with

length Phase 1 works from Rawang

to Ipoh, Leighton is the premier track

works contractor in Malaysia. Because

of the specialised skill and fleet of

equipment within our rail business, there

is a great opportunity to collaborate

with the other subsidiaries in the

Leighton Group to pursue new business

in markets outside of our current

geographical areas.

Such collaboration across the

Leighton International business

operations is already evident in our

offshore business, the most recent

successful delivery being the Labuan

Water Supply Offshore Pipeline project

in September this year. This was a

technically challenging initiative delivered

on time and budget due to an excellent

team of people utilising the Group’s

state of the art marine assets.

Our project team on a contaminated

facility site remediation project, which

involves retrieving and safely disposing

of radioactive materials from an

existing storage facility, is making

excellent progress. This project was

secured due to our ability to work

in close collaboration with our client

in developing precise methods that

comply with onerous requirements of

the Atomic Energy Licensing Board and

developing an equitable price evaluation

plan with shared risks to deal with the

unknown conditions inherent in a project

of this nature. Our strength as always

is in developing innovative solutions

to complex problems and the ability to

take on non traditional contract delivery

methods.

the PPP model in mind, will require

access to high levels of funding and

an international level of technical

expertise not widely available to many

local contractors. Whilst construction

companies such as Leighton have

international expertise and can access

the required funding, they will still have

to compete with other large international

contractors such as those from China.

The Chinese in particular are able to

FUTURE GOALSLooking ahead we are pursuing

two excellent opportunities in

Malaysia related to multi-purpose dam

construction and coal mining, both

of which involve Leighton taking on a

project development role. This is made

possible given our excellent relationship

with Emrail and their shareholding within

Leighton Malaysia. Other immediate

opportunities within Malaysia include

expansion of the LBT jetty facility,

construction of a new material handling

jetty facility for VALE and expansion of

an existing major highway. Longer term

opportunities in Malaysia relate to the

government’s drive to expand the LRT

and freight cargo rail network.

With the recognisable upturn in

Singapore where the construction

sector is expected to experience annual

turnover in excess of US$20 billion per

annum for the coming five years, and

with available margins also expected to

improve, we have re-entered this market

with confidence and high expectations.

Currently, we are working on several

initiatives with the major initiatives

being the 320Mld TUAS Desalination

Plant and various tunnel construction

packages for the Down Town Line 3 LRT

Network. Our operation in Singapore is

spotlighted in this issue of Perspective

(see page 8).

The Malaysian operations, including

Singapore and Brunei, have made

significant contribution to the Group over

the years and 2010 was another great

year. We look forward to an even better

year in 2011. �

quote very aggressive prices, however

Leighton with its proven track record of

project delivery, high standards of site

safety and adherence to international

environmental standards is well placed

to secure some of these mega projects.

The future is going to be interesting. It

will certainly be challenging, but with the

right skills and experience the rewards

at the end are likely to justify the effort. �

Duta Plaza

Kuala Lumpur

06 07INDUSTRY NEWS

“Leighton will still have to compete with other large international contractors such as those from China. The Chinese in particular are able to quote very aggressive prices, however Leighton with its proven track record of project delivery, high standards of site safety and adherence to international environmental standards is well placed to secure some of these mega projects.”

“We have to retain and develop our ability to re-engineer conventional designs, introduce the latest methods of construction, and apply project delivery mechanisms that generate cost, schedule and delivery efficiencies.”

OVERVIEW

HEADING LEIGHTON MALAYSIA, SINGAPORE AND BRUNEI; GENERAL MANAGER

TONY HARVEY REVIEWS PAST ACHIEVEMENTS AND CURRENT TARGETS SET AGAINST

A CHALLENGING SOUTH EAST ASIAN MARKET.

MICHAEL HALPIN, MALAYSIA AUSTRALIA BUSINESS COUNCIL CHAIRMAN, PROVIDES

AN UPDATE ON THE GOVERNMENT OF MALAYSIA’S STRATEGIES FOR THE LOCAL

BUILDING INDUSTRY AND POTENTIAL BUSINESS OPPORTUNITIES FOR LEIGHTON.

MAINTAINING A STRONG MARKET PRESENCE

MALAYSIA AT A CROSSROADS

This is our 33rd year

of business in Malaysia

having commenced

our involvement in

1977 with the Labuan

Flour Mill Project in

Sabah, East Malaysia.

The key to our success has been to

maintain our competitive edge ahead of

maturing local contracting companies

and this will continue to be the challenge.

In this regard, we have to retain and

develop our ability to re-engineer

conventional designs, introduce the

latest methods of construction, and

apply project delivery mechanisms that

generate cost, schedule and delivery

efficiencies.

In terms of technical ability, there

is very little that we cannot do in our

market sectors. We have a team of

personnel with the ability to respond to

technically challenging and financially

complex deals. Therein lies our strength,

our people. Ultimately, we need to

capitalise on our flexibility, versatility

and expertise to remain relevant in a

market that is becoming increasingly

competitive.

WORKING IN COLLABORATION

Currently, we are undertaking the

largest rail works project undertaken in

Malaysia that involves 760 kilometers

of track length from Ipoh to Padang

Besar, which will enable train travel at

speeds of 160 kilometers per hour from

Kuala Lumpur to the Thai border. Having

completed the 400 kilometers track

Malaysia has come

through the most

recent global

economic crisis in far

better condition than

many of the worlds

developed nations.

Never the less, whilst putting in place

measures to keep Malaysia from sinking

into a recession, the government under

the leadership of Prime Minister Dato’

Sri Mohd Najib Tun Abdul Razak also

designed various strategies to lift

Malaysia out of the Middle Income

Trap in which its population has

found themselves.

Malaysia is now at a crossroads.

Its planned route leading to High

Income Nation status with the other

routes leading to, at best economic

mediocrity. Utilising the government’s

planned strategies of, One Malaysia, the

Government Transformation Programme,

the New Economic Model and the

10th Malaysia Plan, the Prime Minister

should be able to reach his chosen

destination for the country with his

ministers full support and with effective

implementation of the government’s

policies by the civil service.

How does this benefit the Malaysian

construction industry? Under the 10th

Malaysia Plan there is a need to develop

World Class Infrastructure which will

where appropriate be developed

using the Public-Private Partnership

(PPP) model. There is also a need to

integrate water supply and sewerage

systems and to expand the availability

of electricity into outlying rural areas and

the continued development of Malaysia’s

oil field services sector. These should

give rise to construction project large

and small to achieve these targets.

What is the role for construction

companies such as Leighton Malaysia?

Whilst many of the likely projects can

be undertaken by local construction

companies, some of the projects

are likely to be very large and with

length Phase 1 works from Rawang

to Ipoh, Leighton is the premier track

works contractor in Malaysia. Because

of the specialised skill and fleet of

equipment within our rail business, there

is a great opportunity to collaborate

with the other subsidiaries in the

Leighton Group to pursue new business

in markets outside of our current

geographical areas.

Such collaboration across the

Leighton International business

operations is already evident in our

offshore business, the most recent

successful delivery being the Labuan

Water Supply Offshore Pipeline project

in September this year. This was a

technically challenging initiative delivered

on time and budget due to an excellent

team of people utilising the Group’s

state of the art marine assets.

Our project team on a contaminated

facility site remediation project, which

involves retrieving and safely disposing

of radioactive materials from an

existing storage facility, is making

excellent progress. This project was

secured due to our ability to work

in close collaboration with our client

in developing precise methods that

comply with onerous requirements of

the Atomic Energy Licensing Board and

developing an equitable price evaluation

plan with shared risks to deal with the

unknown conditions inherent in a project

of this nature. Our strength as always

is in developing innovative solutions

to complex problems and the ability to

take on non traditional contract delivery

methods.

the PPP model in mind, will require

access to high levels of funding and

an international level of technical

expertise not widely available to many

local contractors. Whilst construction

companies such as Leighton have

international expertise and can access

the required funding, they will still have

to compete with other large international

contractors such as those from China.

The Chinese in particular are able to

FUTURE GOALSLooking ahead we are pursuing

two excellent opportunities in

Malaysia related to multi-purpose dam

construction and coal mining, both

of which involve Leighton taking on a

project development role. This is made

possible given our excellent relationship

with Emrail and their shareholding within

Leighton Malaysia. Other immediate

opportunities within Malaysia include

expansion of the LBT jetty facility,

construction of a new material handling

jetty facility for VALE and expansion of

an existing major highway. Longer term

opportunities in Malaysia relate to the

government’s drive to expand the LRT

and freight cargo rail network.

With the recognisable upturn in

Singapore where the construction

sector is expected to experience annual

turnover in excess of US$20 billion per

annum for the coming five years, and

with available margins also expected to

improve, we have re-entered this market

with confidence and high expectations.

Currently, we are working on several

initiatives with the major initiatives

being the 320Mld TUAS Desalination

Plant and various tunnel construction

packages for the Down Town Line 3 LRT

Network. Our operation in Singapore is

spotlighted in this issue of Perspective

(see page 8).

The Malaysian operations, including

Singapore and Brunei, have made

significant contribution to the Group over

the years and 2010 was another great

year. We look forward to an even better

year in 2011. �

quote very aggressive prices, however

Leighton with its proven track record of

project delivery, high standards of site

safety and adherence to international

environmental standards is well placed

to secure some of these mega projects.

The future is going to be interesting. It

will certainly be challenging, but with the

right skills and experience the rewards

at the end are likely to justify the effort. �

Duta Plaza

Kuala Lumpur

08 09NEW PROJECTS

Singapore’s strategic

location and political

stability have made

it an attractive oasis

for many foreign

corporations seeking

to target the Asian

market. Leighton International has

recently made the strategic decision to

re-enter the Singapore market on the

back of an upturn in Singapore’s

economic growth and recognition that

the coming five to seven years will see

the development of a substantial

number of large, private and publically

funded infrastructure projects.

Singapore’s construction sector is

highly developed with a reputation for

being ultra – competitive with

comparatively low margins but balanced

by low taxation, low bureaucracy and

high levels of transparency, corporate

protection and local and foreign

investment. Consequently all of the

regional household name construction

groups together with multi-nationals

from Europe and North America have a

strong presence and are competing with

long established local companies for

a slice of an industry that is expected

to turn over in excess of US$20 billion

in year 2010.

INDUSTRY NEWS

For Leighton, since first entering this

market back in 1992, Singapore has

offered a number of on-shore and

off-shore boutique project opportunities

which have proven to be highly lucrative

and successful.

Our previous attempt in 2003 to gain

a permanent foothold in Singapore

coincided with a local economic

downturn, the SARS crisis and the

simultaneous increase in construction

activity in India and the Middle East.

Consequently, in 2005 the decision

was made to mothball our Singapore

operation until a more rewarding

business environment returned.

The re-entry in June of this year is

quickly proving to be rewarding with the

Singapore office already contending with

a number of tenders including three

co-gen power plant extensions, a waste

facility project in Brunei with a Singapore

project developer, Tuas Desalination

PPP Project, Downtown Line 3 MRT

extension and Downtown Line 3 track

works. The programme of future tenders

already extends into third quarter 2011

and whilst the local market remains

highly competitive and commercially

aggressive, there exists a strong belief

that this time around Leighton’s

presence in Singapore will be a long

and successful one. �

LEIGHTON RETURNS TO SINGAPORELEIGHTON SINGAPORE AREA MANAGER,

BRIAN TICCIONI, SHARES HOW LEIGHTON IS

WORKING TOWARDS GETTING A SLICE OF

AN ULTRA–COMPETITIVE MARKET.

“The programme of future tenders already extends into third quarter 2011 and whilst the local market remains highly competitive and commercially aggressive, there exists a strong belief that this time around Leighton’s presence in Singapore will be a long and successful one.”

Left to Right

CCR Block Mechanical & Underground Installation;

Pasir Panjang to Pulau Bukom Pipeline; Pan United Cement Silo

08 09NEW PROJECTS

Singapore’s strategic

location and political

stability have made

it an attractive oasis

for many foreign

corporations seeking

to target the Asian

market. Leighton International has

recently made the strategic decision to

re-enter the Singapore market on the

back of an upturn in Singapore’s

economic growth and recognition that

the coming five to seven years will see

the development of a substantial

number of large, private and publically

funded infrastructure projects.

Singapore’s construction sector is

highly developed with a reputation for

being ultra – competitive with

comparatively low margins but balanced

by low taxation, low bureaucracy and

high levels of transparency, corporate

protection and local and foreign

investment. Consequently all of the

regional household name construction

groups together with multi-nationals

from Europe and North America have a

strong presence and are competing with

long established local companies for

a slice of an industry that is expected

to turn over in excess of US$20 billion

in year 2010.

INDUSTRY NEWS

For Leighton, since first entering this

market back in 1992, Singapore has

offered a number of on-shore and

off-shore boutique project opportunities

which have proven to be highly lucrative

and successful.

Our previous attempt in 2003 to gain

a permanent foothold in Singapore

coincided with a local economic

downturn, the SARS crisis and the

simultaneous increase in construction

activity in India and the Middle East.

Consequently, in 2005 the decision

was made to mothball our Singapore

operation until a more rewarding

business environment returned.

The re-entry in June of this year is

quickly proving to be rewarding with the

Singapore office already contending with

a number of tenders including three

co-gen power plant extensions, a waste

facility project in Brunei with a Singapore

project developer, Tuas Desalination

PPP Project, Downtown Line 3 MRT

extension and Downtown Line 3 track

works. The programme of future tenders

already extends into third quarter 2011

and whilst the local market remains

highly competitive and commercially

aggressive, there exists a strong belief

that this time around Leighton’s

presence in Singapore will be a long

and successful one. �

LEIGHTON RETURNS TO SINGAPORELEIGHTON SINGAPORE AREA MANAGER,

BRIAN TICCIONI, SHARES HOW LEIGHTON IS

WORKING TOWARDS GETTING A SLICE OF

AN ULTRA–COMPETITIVE MARKET.

“The programme of future tenders already extends into third quarter 2011 and whilst the local market remains highly competitive and commercially aggressive, there exists a strong belief that this time around Leighton’s presence in Singapore will be a long and successful one.”

Left to Right

CCR Block Mechanical & Underground Installation;

Pasir Panjang to Pulau Bukom Pipeline; Pan United Cement Silo

10 11

NAME: EVELYN ANG

JOB TITLE: SENIOR QUANTITY SURVEYOR

LOCATION: SINGAPORE

PROJECT: CORPORATE OFFICE

What is the most rewarding thing about your job?I take pride in the projects that I’ve been

involved with because each and every

project is so unique with its own set

of challenges, team members and

counterparts. Each experience is

irreplaceable and there is always

something new I can learn.

Where do you see the construction industry in Singapore placed for the year ahead?I think the Singapore construction

industry looks positive over the next

few years with projects planned in

the pipeline from both public and

private sectors. �

PROFILES PROFILES

WORKING IN SINGAPORE

NEW STARTER

“Singapore is resultantly a highly livable city and a location that you become immediately comfortable with. A similar maxim stands for the business world where extremely high rates of proficiency and efficiency and an emphasis on delivering quality results, minimizes the frustration levels.”

How long have you been working in the industry and with Leighton Singapore? I have been in the local construction

industry for more than 15 years and

newly added to Leighton Singapore a

month ago. Past experience involved

oil, gas, petrochemical, waste water

treatment and pharmaceutical plants,

as well as residential building and

warehouses.

What attracts you to the work?I have always been fascinated by

how tall buildings, beautiful bridges,

magnificent dams and intriguing

chemical plants are constructed. It is

really amazing. And the satisfaction of

being part of a team that transforms

the architect’s or engineer’s concept

into reality.

What does a normal working day look like for you?I guess a normal day is rushing against

time to get things done, perusing

through contract bible and do the best

to defend any monetary claim in each

contract. Leighton Singapore, however,

is newly set up and the priority currently

is to work on tenders within the

stipulated timeframe and contribute my

best to assist in securing the projects.

What are your day-to-day challenges you face at work?The biggest challenge is to keep cool

under constant unreasonable demands.

But this is part and parcel of the

construction industry. As mentioned

earlier, due to Leighton Singapore being

newly set up, the daily challenge is how

do I put my best knowledge forward and

assist the bid team in securing projects.

What are you initial impressions of starting work in Leighton Singapore?First and foremost, I’m extremely happy

to be back working in South East Asia

with Leighton International following my

three years in the Gulf with the Habtoor/

Leighton Group. Upon arriving what

immediately hit me was the apparent

health of the construction sector in

Singapore. The volume and scale

of projects that are currently being

undertaken coupled with the

Government’s future plans to further

expand what is already a highly

developed core infrastructure means

that the present S$20 billion per annum

construction spend won’t reduce in the

foreseeable future. For Leighton

Singapore in the short to long-term

that means a wealth of opportunities to

pursue, albeit recognisably in a highly

competitive commercial environment.

I’ve also been enthused by the level

of sophistication of our Joint Venture

partners, the knowledge and capability

of the local consultants we’ve interfaced

with, the professionalism of prospective

clients we’ve been introduced to and

the strong capability and work ethics of

the staff we have employed.

How long have you been working in the industry?I’ve been in the industry for over 25

years and essentially I finished fifth

form on a Friday and started work the

following Monday. I started my career

with Bovis Construction in Glasgow

where I was placed on a five year

traineeship where during a working

week I was on site three days and

studying at university two days. It was a

great way of combining theory with solid

practical experience but sadly, such

opportunities for new blood entering the

industry are few and far between these

days. After graduating I left Bovis and

joined Wimpey Construction where I

had eight terrific years working with a

young, vibrant team of construction

professionals and undertaking a number

of highly successful building projects

during that period. In the late nineties,

I decided to venture overseas, joined

Leighton in Malaysia and since then I’ve

had over 12 thoroughly enjoyable years.

What do you think are the key challenges for your job? Currently, the focus is pointed towards

gaining sufficient local knowledge and

expertise to identify the edge that will

enable us to successfully compete in

what stands as a hard dollar based,

highly competitive, mature market.

Foreseeably, the challenges will change

from the point we secure our first project

and as we develop from a fledgling

business into an established

operating unit.

What is the most rewarding thing about your job? I find working in this industry to be

intrinsically rewarding. We work in an

industry where every day is different,

each project opportunity is unique and

where every project brings its own

multi-facetted type and degree of

challenge. In my mind there is nothing

more satisfying than having played a

part in delivering a successful project

and in so doing, returned the optimum

bottom line.

How do you find living and working in Singapore?Having spent the previous three years

in the scorching, sandy wastes of

Abu Dhabi, Sunderland never mind

Singapore would have been a

substantial step up! Kidding aside, there

does exist such an ingrained national

culture and pride in delivering superior

levels of service. Singapore is resultantly

a highly livable city and a location that

you become immediately comfortable

with. A similar maxim stands for the

business world where extremely high

rates of proficiency and efficiency and

an emphasis on delivering quality results,

minimizes the frustration levels. ��

NAME: BRIAN TICCIONI

JOB TITLE: AREA MANAGER

LOCATION: SINGAPORE


Pan United Cement Silo

Singapore

10 11

NAME: EVELYN ANG

JOB TITLE: SENIOR QUANTITY SURVEYOR

LOCATION: SINGAPORE


What is the most rewarding thing about your job?I take pride in the projects that I’ve been

involved with because each and every

project is so unique with its own set

of challenges, team members and

counterparts. Each experience is

irreplaceable and there is always

something new I can learn.

Where do you see the construction industry in Singapore placed for the year ahead?I think the Singapore construction

industry looks positive over the next

few years with projects planned in

the pipeline from both public and

private sectors. �

PROFILES PROFILES

WORKING IN SINGAPORE

NEW STARTER

“Singapore is resultantly a highly livable city and a location that you become immediately comfortable with. A similar maxim stands for the business world where extremely high rates of proficiency and efficiency and an emphasis on delivering quality results, minimizes the frustration levels.”

How long have you been working in the industry and with Leighton Singapore? I have been in the local construction

industry for more than 15 years and

newly added to Leighton Singapore a

month ago. Past experience involved

oil, gas, petrochemical, waste water

treatment and pharmaceutical plants,

as well as residential building and

warehouses.

What attracts you to the work?I have always been fascinated by

how tall buildings, beautiful bridges,

magnificent dams and intriguing

chemical plants are constructed. It is

really amazing. And the satisfaction of

being part of a team that transforms

the architect’s or engineer’s concept

into reality.

What does a normal working day look like for you?I guess a normal day is rushing against

time to get things done, perusing

through contract bible and do the best

to defend any monetary claim in each

contract. Leighton Singapore, however,

is newly set up and the priority currently

is to work on tenders within the

stipulated timeframe and contribute my

best to assist in securing the projects.

What are your day-to-day challenges you face at work?The biggest challenge is to keep cool

under constant unreasonable demands.

But this is part and parcel of the

construction industry. As mentioned

earlier, due to Leighton Singapore being

newly set up, the daily challenge is how

do I put my best knowledge forward and

assist the bid team in securing projects.

What are you initial impressions of starting work in Leighton Singapore?First and foremost, I’m extremely happy

to be back working in South East Asia

with Leighton International following my

three years in the Gulf with the Habtoor/

Leighton Group. Upon arriving what

immediately hit me was the apparent

health of the construction sector in

Singapore. The volume and scale

of projects that are currently being

undertaken coupled with the

Government’s future plans to further

expand what is already a highly

developed core infrastructure means

that the present S$20 billion per annum

construction spend won’t reduce in the

foreseeable future. For Leighton

Singapore in the short to long-term

that means a wealth of opportunities to

pursue, albeit recognisably in a highly

competitive commercial environment.

I’ve also been enthused by the level

of sophistication of our Joint Venture

partners, the knowledge and capability

of the local consultants we’ve interfaced

with, the professionalism of prospective

clients we’ve been introduced to and

the strong capability and work ethics of

the staff we have employed.

How long have you been working in the industry?I’ve been in the industry for over 25

years and essentially I finished fifth

form on a Friday and started work the

following Monday. I started my career

with Bovis Construction in Glasgow

where I was placed on a five year

traineeship where during a working

week I was on site three days and

studying at university two days. It was a

great way of combining theory with solid

practical experience but sadly, such

opportunities for new blood entering the

industry are few and far between these

days. After graduating I left Bovis and

joined Wimpey Construction where I

had eight terrific years working with a

young, vibrant team of construction

professionals and undertaking a number

of highly successful building projects

during that period. In the late nineties,

I decided to venture overseas, joined

Leighton in Malaysia and since then I’ve

had over 12 thoroughly enjoyable years.

What do you think are the key challenges for your job? Currently, the focus is pointed towards

gaining sufficient local knowledge and

expertise to identify the edge that will

enable us to successfully compete in

what stands as a hard dollar based,

highly competitive, mature market.

Foreseeably, the challenges will change

from the point we secure our first project

and as we develop from a fledgling

business into an established

operating unit.

What is the most rewarding thing about your job? I find working in this industry to be

intrinsically rewarding. We work in an

industry where every day is different,

each project opportunity is unique and

where every project brings its own

multi-facetted type and degree of

challenge. In my mind there is nothing

more satisfying than having played a

part in delivering a successful project

and in so doing, returned the optimum

bottom line.

How do you find living and working in Singapore?Having spent the previous three years

in the scorching, sandy wastes of

Abu Dhabi, Sunderland never mind

Singapore would have been a

substantial step up! Kidding aside, there

does exist such an ingrained national

culture and pride in delivering superior

levels of service. Singapore is resultantly

a highly livable city and a location that

you become immediately comfortable

with. A similar maxim stands for the

business world where extremely high

rates of proficiency and efficiency and

an emphasis on delivering quality results,

minimizes the frustration levels. ��

NAME: BRIAN TICCIONI

JOB TITLE: AREA MANAGER

LOCATION: SINGAPORE


Pan United Cement Silo

Singapore

12 13XXXXXXXXXXXXX

SNAPSHOTLeighton Malaysia – Emrail’s Northern Double Track project from Ipoh to Padang Besar (more on page 16). �

12 13XXXXXXXXXXXXX

SNAPSHOTLeighton Malaysia – Emrail’s Northern Double Track project from Ipoh to Padang Besar (more on page 16). �

14 15PROFILES

INVESTING IN LEIGHTON

“Currently I have colleagues from England, Scotland, Australia and Malaysia working in the same office which exposes me greatly to the values and working styles of different nationalities.”

How long have you been working in the industry and with Leighton Singapore?I have been in the construction industry

for 20 years, working on projects that

range from Changi Airport’s Terminal 3

to MRT lines to high rise buildings and

educational institutions. I joined Leighton

Singapore in August 2010.

What attracts you to the work?In Singapore’s construction industry we

are able to meet and work with different

nationalities in the work place. This gives

me the opportunity to learn the values

and cultures of other races. Due to the

different ways my colleagues work, I

learn better methods of accomplishing

tasks and handling problems. In this

field of expertise, there is definitely more

than one way of doing my job so I take

pleasure in observing others’ working

skills, as well as accepting my weakness

and changing the way I deal with

problems relating to my work.

Currently I have colleagues from

England, Scotland, Australia and

Malaysia working in the same office

which exposes me greatly to the

values and working styles of

different nationalities.

What does a normal working day look like for you?My job scope is making contact and

sourcing for the right supplier and

sub-contractor for the tendering work.

We are tendering for the upcoming MRT

projects in Singapore currently.

What are your day-to-day challenges you face at work?The sub-contractors we engage not only

have to be cost effective and competent,

they must also demonstrate a strong

sense of safety commitment and

responsibility towards the environment.

What is the most rewarding thing about your job?The most immediate sense of

satisfaction is when I know the

project has been completed on

time and within the cost budget.

This proves that my team and I have

planned well and managed to come

up with the best of our abilities despite

our differences and limitations.

Also, knowing that ordinary people,

including our future generation will

benefit and enjoy the usage of a

structure for years to come feels

extremely rewarding.

What do you think sets Leighton apart from other contractors in Singapore?Unlike other local contractors,

Leighton focuses on high values and

unconventional projects which fully

utilise our expertise and strengths.

And that differentiate us from the rest.

Where do you see the opportunities for the business in the year ahead?As Singapore is experiencing strong

economic growth, it is projected that

there will also be a high growth in

construction industry for the next few

years. If we remain competent and

focus in this area, I am certain that we

will be able to secure some major

projects in the near future. �

PROFILES

NAME: SENTHIL KUMAR

JOB TITLE: SENIOR PROJECT MANAGER

LOCATION: MUMBAI, INDIA

PROJECT: PIPELINE REPLACEMENT PROJECT, SEASON 2 (PRP2)

How long have you been working in the industry and with Leighton? Started work as a chain boy on the M55

motorway project near Preston in the UK

in 1974, so I’ve been in the industry for

36 years. Studied Civil Engineering at

Bath University. After university I worked

in Eastbourne as a Graduate Engineer

for Sir Robert McAlpine for three years

on a “training under agreement” scheme,

which in those days enabled you to

complete your MICE and Chartered

Engineer course within three years. After

that I worked for COSTAIN in the UAE

as a Geotechnical Engineer on a large

underpass project in Abu Dhabi and on

DAS Island, an offshore installation, of

two kilometers long by one kilometer

wide in the middle of the Arabian Gulf.

Following this I worked for 18 years

with Freyssinet International from

France in many interesting bridge

and viaduct projects in many exciting

locations such as Turkey, Prince Edward

Island, Canada, Hong Kong, Vietnam,

Indonesia, Malaysia and Singapore.

I joined Leighton in 2002, working

in the Singapore office in Business

Development. Since then I have worked

in Kuala Lumpur, Abu Dhabi and now

back in Singapore.

What attracts you to the work?Working with Leighton is always

exciting and challenging. The energy

and enthusiasm in Leighton is

tremendous, everyone wants to be part

of the team that wins the projects. We

work long hours and we practice very

much the doctrine of ‘work hard, play

hard’. It’s a great atmosphere.

What do you think are the key challenges for your job?Winning our first major project in

Singapore is by far my greatest

challenge, which depends greatly on

support from all levels in the

organisation.

What do you think sets Leighton apart from other contractors in Singapore? We shall bring a new style of contracting

to Singapore, where everybody is part of

the project team and the ‘Leighton Way’

will be seen by our stakeholders and

peers as the right way. We shall become

a contractor who is seen to deliver on

time and with a Quality and Health &

Safety Standard above the other

contractors.

What do you see are the key strengths of the business?We have a good brand and a great

product, we just need to get that first

project and prove it to everyone. Our

Australian attitude will bring a fresh

breeze to the Singapore market and we

will build up a good team.

THE LEIGHTON WAY NAME: STEPHEN HEATH

JOB TITLE: PROJECT DEVELOPMENT MANAGER

LOCATION: SINGAPORE


Where do you see the construction industry in Singapore placed for the year ahead?Singapore is booming, it is the preferred

place for people to live and work in Asia

because everything works. We see the

Singapore Government is always

continually re-inventing itself to stay

ahead of the competition and stay

productive, consequently, there are

many new projects coming up in the

new Medical Hub, Mediaopolis, Seleter

Aerospace Park, Clean Tech Park,

Biopolis and the I-Park - just enormous

and it goes on like this for the next ten

years.

How do you find living and working in Singapore?Hard work and great fun. �

LOCAL KNOWLEDGE, INTERNATIONAL EXPERIENCE

NAME: JAMES TEO

JOB TITLE: PROCUREMENT MANAGER

LOCATION: SINGAPORE


Building Construction

Singapore

14 15PROFILES

INVESTING IN LEIGHTON

“Currently I have colleagues from England, Scotland, Australia and Malaysia working in the same office which exposes me greatly to the values and working styles of different nationalities.”

How long have you been working in the industry and with Leighton Singapore?I have been in the construction industry

for 20 years, working on projects that

range from Changi Airport’s Terminal 3

to MRT lines to high rise buildings and

educational institutions. I joined Leighton

Singapore in August 2010.

What attracts you to the work?In Singapore’s construction industry we

are able to meet and work with different

nationalities in the work place. This gives

me the opportunity to learn the values

and cultures of other races. Due to the

different ways my colleagues work, I

learn better methods of accomplishing

tasks and handling problems. In this

field of expertise, there is definitely more

than one way of doing my job so I take

pleasure in observing others’ working

skills, as well as accepting my weakness

and changing the way I deal with

problems relating to my work.

Currently I have colleagues from

England, Scotland, Australia and

Malaysia working in the same office

which exposes me greatly to the

values and working styles of

different nationalities.

What does a normal working day look like for you?My job scope is making contact and

sourcing for the right supplier and

sub-contractor for the tendering work.

We are tendering for the upcoming MRT

projects in Singapore currently.

What are your day-to-day challenges you face at work?The sub-contractors we engage not only

have to be cost effective and competent,

they must also demonstrate a strong

sense of safety commitment and

responsibility towards the environment.

What is the most rewarding thing about your job?The most immediate sense of

satisfaction is when I know the

project has been completed on

time and within the cost budget.

This proves that my team and I have

planned well and managed to come

up with the best of our abilities despite

our differences and limitations.

Also, knowing that ordinary people,

including our future generation will

benefit and enjoy the usage of a

structure for years to come feels

extremely rewarding.

What do you think sets Leighton apart from other contractors in Singapore?Unlike other local contractors,

Leighton focuses on high values and

unconventional projects which fully

utilise our expertise and strengths.

And that differentiate us from the rest.

Where do you see the opportunities for the business in the year ahead?As Singapore is experiencing strong

economic growth, it is projected that

there will also be a high growth in

construction industry for the next few

years. If we remain competent and

focus in this area, I am certain that we

will be able to secure some major

projects in the near future. �

PROFILES

NAME: SENTHIL KUMAR

JOB TITLE: SENIOR PROJECT MANAGER

LOCATION: MUMBAI, INDIA

PROJECT: PIPELINE REPLACEMENT PROJECT, SEASON 2 (PRP2)

How long have you been working in the industry and with Leighton? Started work as a chain boy on the M55

motorway project near Preston in the UK

in 1974, so I’ve been in the industry for

36 years. Studied Civil Engineering at

Bath University. After university I worked

in Eastbourne as a Graduate Engineer

for Sir Robert McAlpine for three years

on a “training under agreement” scheme,

which in those days enabled you to

complete your MICE and Chartered

Engineer course within three years. After

that I worked for COSTAIN in the UAE

as a Geotechnical Engineer on a large

underpass project in Abu Dhabi and on

DAS Island, an offshore installation, of

two kilometers long by one kilometer

wide in the middle of the Arabian Gulf.

Following this I worked for 18 years

with Freyssinet International from

France in many interesting bridge

and viaduct projects in many exciting

locations such as Turkey, Prince Edward

Island, Canada, Hong Kong, Vietnam,

Indonesia, Malaysia and Singapore.

I joined Leighton in 2002, working

in the Singapore office in Business

Development. Since then I have worked

in Kuala Lumpur, Abu Dhabi and now

back in Singapore.

What attracts you to the work?Working with Leighton is always

exciting and challenging. The energy

and enthusiasm in Leighton is

tremendous, everyone wants to be part

of the team that wins the projects. We

work long hours and we practice very

much the doctrine of ‘work hard, play

hard’. It’s a great atmosphere.

What do you think are the key challenges for your job?Winning our first major project in

Singapore is by far my greatest

challenge, which depends greatly on

support from all levels in the

organisation.

What do you think sets Leighton apart from other contractors in Singapore? We shall bring a new style of contracting

to Singapore, where everybody is part of

the project team and the ‘Leighton Way’

will be seen by our stakeholders and

peers as the right way. We shall become

a contractor who is seen to deliver on

time and with a Quality and Health &

Safety Standard above the other

contractors.

What do you see are the key strengths of the business?We have a good brand and a great

product, we just need to get that first

project and prove it to everyone. Our

Australian attitude will bring a fresh

breeze to the Singapore market and we

will build up a good team.

THE LEIGHTON WAY NAME: STEPHEN HEATH

JOB TITLE: PROJECT DEVELOPMENT MANAGER

LOCATION: SINGAPORE


Where do you see the construction industry in Singapore placed for the year ahead?Singapore is booming, it is the preferred

place for people to live and work in Asia

because everything works. We see the

Singapore Government is always

continually re-inventing itself to stay

ahead of the competition and stay

productive, consequently, there are

many new projects coming up in the

new Medical Hub, Mediaopolis, Seleter

Aerospace Park, Clean Tech Park,

Biopolis and the I-Park - just enormous

and it goes on like this for the next ten

years.

How do you find living and working in Singapore?Hard work and great fun. �

LOCAL KNOWLEDGE, INTERNATIONAL EXPERIENCE

NAME: JAMES TEO

JOB TITLE: PROCUREMENT MANAGER

LOCATION: SINGAPORE


Building Construction

Singapore

16 17COMPANY NEWS

THE GOVERNMENT OF MALAYSIA HAS EMBARKED ON A RAILWAY INFRASTRUCTURE

DEVELOPMENT PROJECT TO UPGRADE THE EXISTING SINGLE TRACK INTO

ELECTRIFIED DOUBLE TRACK RAILWAY IN BETWEEN IPOH AND THE BORDER TOWN

OF PADANG BESAR. LEIGHTON PROJECT DIRECTOR, CORMAC BRADY,

GIVES US A PROGRESS UPDATE.

ON TRACK TO DELIVER

Leighton Malaysia, in partnership with

Emrail, was awarded the Government

rail contract to construct 753 kilometers

of track works late last year. The

upgrade to a modern electrified double

track network will allow for an increased

line speed to 140 kilometers per hour

and a rise in both passenger and freight

capacities.

At the peak of construction, the total

workforce will be over 500 personnel

with the majority sourced from Malaysia,

India, Thailand, Philippines and

Bangladesh.

As with any track construction,

safety of existing passenger services

is a priority. All employees undergo a

one and half day course on line side

safety awareness training conducted

by KTMB (Malaysian Railways) as well

as various project site inductions. Strict

compliance to operating procedures for

access to the existing network has been

implemented for the project.

The works conducted to date have

been associated with site establishment,

construction of workshop and flashbutt

depot yards at Taiping and Jarak, as

well as site offices at Bukit Mertajam,

Taiping and Sungai Petani. The flashbutt

depot facilities are required to weld

88,000 tonnes of UIC 54 rail, received

from the client in 25 meter lengths, into

150 meter long strings for subsequent

transport via the existing rail network to

the various work locations. Production

of flashbutt welding is undertaken both

within fixed depots and on track with

equipment originally manufactured

in Austria, Italy and USA. Production

welding commenced on 6th September

2010 with approximately 10 kilometers

of tracks welded as off 24th September.

Construction of temporary track

work diversions has also commenced

which facilitates access for the staged

construction of earthworks. Even the

quantity of temporary track construction

at 70 kilometers is significant with

approximately 14 kilometers completed

to date.

In addition to the 88,000 tonnes

of rail, the client is also supplying

approximately three million tonnes of

ballast and 1.2 million concrete sleepers.

Emrail/Leighton at its peak production

is planning to construct over 40

kilometers of track per month utilising

an impressive fleet of track equipment

comprising nine Plasser tamping

machines, nine ballast regulators, four

flashbutt welding machines, rail steel

delivery trains capable of carrying 150

meters long welded rail strings and

ballast delivery trains consisting of 40

ballast wagons.

The anticipated completion date

for the track works component of the

project is the first quarter of 2013.

Establishment of such array of

specialist track construction equipment

together with a highly skilled and mobile

workforce will allow Emrail and Leighton

International to take full advantage of

the planned rail expansion in South

East Asia region. �

LABUAN PIPELINE PROJECT COMPLETED AHEAD OF SCHEDULE

The Government of Malaysia is

undertaking the development of a Water

Pipeline in Labuan, East Malaysia, to

mitigate the acute water shortage on

the island. In collaboration with Leighton

Offshore and in Joint Venture with

Kencana HL, Leighton Malaysia

delivered the following:

The delivery of existing 26 inch

pipeline – 22740 meters including the

supply of additional 600 meters of

new pipes by Kencana.

Pre-installation pipelay analysis

Install and pre-commission

approximately 22.8km of submarine

pipeline in max water depths of 22m.

Post trench approximately 1.8km at

three locations along the route

Interface with existing mudflats

contractor including undertaking a

midpoint tie-in.

A key challenge to the installation of the

pipeline was the constraints that the

physical characteristics of the free issued

pipeline poses in terms of its stiffness,

due to the relatively thick reinforced

concrete weight coating and its relatively

thin wall thickness.

The challenges that this poses include

the ability to install this pipeline using a

pipe lay barge that has sufficient track

A FEATHER IN THE CAP FOR LEIGHTON MALAYSIA AND LEIGHTON OFFSHORE AS THE

LABUAN WATER PIPELINE PROJECT IS COMPLETED A MONTH AHEAD OF SCHEDULE.

PROJECT UPDATES

tensioner capacity, and undertaking detail

stress analysis using finite element

methods to identify and reduce bending

stresses during installation. Leighton

Stealth was used to install the pipeline

using the S-Lay method.

Leighton completed the project on

the 10th September, over a month ahead

of schedule.

Project Manager, Edgar Ramani, said

“It was a demanding project set against a

very tight timeline with the contract being

awarded on 17th May, commencement of

onshore installation works on 29th May

and offshore installation works on 7th July.

So to have completed one month ahead

of schedule is something the team is very

proud of.

“We were given a very short period to

complete engineering and planning. The

installation of a thin wall, rigid pipeline

susceptible to buckling together with poor

weather conditions, plus working with a

competitive budget; were among the

challenging obstacles we faced. But the

dedicated and focused project team

overcame these challenges with great

success.

“We achieved this while maintaining a

high standard of safety and quality – with

no loss time injuries on the project and a

high audit score from Lloyds Register for

the environment audit with no non-

conformances. We also gave something

back to the local community through an

environmental awareness campaign with

a local community centre for disabled

kids. We planted fruit trees at the centre

and sponsored eight local athletes to take

part in the next Malaysian Paralympics

Games in Perak, Malaysia.”

The team delivered the project on-time

and well below budget, whilst efficiently

delivering Stealth for the next offshore

project, Devil Creek Development Project

in Australia on schedule. �

PADANG BESAR

THAILAND

MALAYSIA

ARAU

ALOR SETAR

BUKIT MERTAJAM

SUNGAI PETANI

KAMUNTING

KUALA KANGSAR

IPOH

BUTTERWORTH

16 17COMPANY NEWS

THE GOVERNMENT OF MALAYSIA HAS EMBARKED ON A RAILWAY INFRASTRUCTURE

DEVELOPMENT PROJECT TO UPGRADE THE EXISTING SINGLE TRACK INTO

ELECTRIFIED DOUBLE TRACK RAILWAY IN BETWEEN IPOH AND THE BORDER TOWN

OF PADANG BESAR. LEIGHTON PROJECT DIRECTOR, CORMAC BRADY,

GIVES US A PROGRESS UPDATE.

ON TRACK TO DELIVER

Leighton Malaysia, in partnership with

Emrail, was awarded the Government

rail contract to construct 753 kilometers

of track works late last year. The

upgrade to a modern electrified double

track network will allow for an increased

line speed to 140 kilometers per hour

and a rise in both passenger and freight

capacities.

At the peak of construction, the total

workforce will be over 500 personnel

with the majority sourced from Malaysia,

India, Thailand, Philippines and

Bangladesh.

As with any track construction,

safety of existing passenger services

is a priority. All employees undergo a

one and half day course on line side

safety awareness training conducted

by KTMB (Malaysian Railways) as well

as various project site inductions. Strict

compliance to operating procedures for

access to the existing network has been

implemented for the project.

The works conducted to date have

been associated with site establishment,

construction of workshop and flashbutt

depot yards at Taiping and Jarak, as

well as site offices at Bukit Mertajam,

Taiping and Sungai Petani. The flashbutt

depot facilities are required to weld

88,000 tonnes of UIC 54 rail, received

from the client in 25 meter lengths, into

150 meter long strings for subsequent

transport via the existing rail network to

the various work locations. Production

of flashbutt welding is undertaken both

within fixed depots and on track with

equipment originally manufactured

in Austria, Italy and USA. Production

welding commenced on 6th September

2010 with approximately 10 kilometers

of tracks welded as off 24th September.

Construction of temporary track

work diversions has also commenced

which facilitates access for the staged

construction of earthworks. Even the

quantity of temporary track construction

at 70 kilometers is significant with

approximately 14 kilometers completed

to date.

In addition to the 88,000 tonnes

of rail, the client is also supplying

approximately three million tonnes of

ballast and 1.2 million concrete sleepers.

Emrail/Leighton at its peak production

is planning to construct over 40

kilometers of track per month utilising

an impressive fleet of track equipment

comprising nine Plasser tamping

machines, nine ballast regulators, four

flashbutt welding machines, rail steel

delivery trains capable of carrying 150

meters long welded rail strings and

ballast delivery trains consisting of 40

ballast wagons.

The anticipated completion date

for the track works component of the

project is the first quarter of 2013.

Establishment of such array of

specialist track construction equipment

together with a highly skilled and mobile

workforce will allow Emrail and Leighton

International to take full advantage of

the planned rail expansion in South

East Asia region. �

LABUAN PIPELINE PROJECT COMPLETED AHEAD OF SCHEDULE

The Government of Malaysia is

undertaking the development of a Water

Pipeline in Labuan, East Malaysia, to

mitigate the acute water shortage on

the island. In collaboration with Leighton

Offshore and in Joint Venture with

Kencana HL, Leighton Malaysia

delivered the following:

The delivery of existing 26 inch

pipeline – 22740 meters including the

supply of additional 600 meters of

new pipes by Kencana.

Pre-installation pipelay analysis

Install and pre-commission

approximately 22.8km of submarine

pipeline in max water depths of 22m.

Post trench approximately 1.8km at

three locations along the route

Interface with existing mudflats

contractor including undertaking a

midpoint tie-in.

A key challenge to the installation of the

pipeline was the constraints that the

physical characteristics of the free issued

pipeline poses in terms of its stiffness,

due to the relatively thick reinforced

concrete weight coating and its relatively

thin wall thickness.

The challenges that this poses include

the ability to install this pipeline using a

pipe lay barge that has sufficient track

A FEATHER IN THE CAP FOR LEIGHTON MALAYSIA AND LEIGHTON OFFSHORE AS THE

LABUAN WATER PIPELINE PROJECT IS COMPLETED A MONTH AHEAD OF SCHEDULE.

PROJECT UPDATES

tensioner capacity, and undertaking detail

stress analysis using finite element

methods to identify and reduce bending

stresses during installation. Leighton

Stealth was used to install the pipeline

using the S-Lay method.

Leighton completed the project on

the 10th September, over a month ahead

of schedule.

Project Manager, Edgar Ramani, said

“It was a demanding project set against a

very tight timeline with the contract being

awarded on 17th May, commencement of

onshore installation works on 29th May

and offshore installation works on 7th July.

So to have completed one month ahead

of schedule is something the team is very

proud of.

“We were given a very short period to

complete engineering and planning. The

installation of a thin wall, rigid pipeline

susceptible to buckling together with poor

weather conditions, plus working with a

competitive budget; were among the

challenging obstacles we faced. But the

dedicated and focused project team

overcame these challenges with great

success.

“We achieved this while maintaining a

high standard of safety and quality – with

no loss time injuries on the project and a

high audit score from Lloyds Register for

the environment audit with no non-

conformances. We also gave something

back to the local community through an

environmental awareness campaign with

a local community centre for disabled

kids. We planted fruit trees at the centre

and sponsored eight local athletes to take

part in the next Malaysian Paralympics

Games in Perak, Malaysia.”

The team delivered the project on-time

and well below budget, whilst efficiently

delivering Stealth for the next offshore

project, Devil Creek Development Project

in Australia on schedule. �

PADANG BESAR

THAILAND

MALAYSIA

ARAU

ALOR SETAR

BUKIT MERTAJAM

SUNGAI PETANI

KAMUNTING

KUALA KANGSAR

IPOH

BUTTERWORTH

18 19

MAXIMISING OFFSHORE OPPORTUNITIES IN THE GULF

The contract forms part of the Iraq

Crude Oil Export Expansion Project

(ICOEEP) which is developing offshore

loading facilities to enable export

capability of 4.5 million barrels of oil

per day.

The project scope includes:

Installation and commissioning of two

48-inch parallel pipelines, 10 kilometres

onshore and 40 kilometres offshore,

linking the new Fao onshore terminal to

the new SPMs, plus approximately 20

kilometres of infield pipelines, and the

shore crossing for a third pipeline to be

installed during future expansions (a

total of over 120 kilometres of pipeline).

Installation of SPMs complete with

subsea pipeline end manifolds (PLEMs)

capable of receiving and loading Very

Large Crude Carrier (VLCC) tankers.

Fabrication and installation of a 600MT

subsea valve manifold for directing flow

between the existing and future

offshore export facilities.

Dredging works to achieve pipeline

burial and to achieve sufficient water

depth for VLCCs mooring to the SPMs.

Construction and commissioning

(including civil, mechanical and

electrical works) for the new onshore

metering and manifold facilities at

Fao terminal.

Leighton Holdings Chief Operating

Officer, David Savage, said “This project

is a fantastic opportunity for Leighton,

and coming closely behind the recent

SPM project win in Tanzania, provides

strong recognition of Leighton’s strength

and experience in SPM installations.

“In recent years, Leighton has built an

enviable track record on SPM’s and large

diameter pipelines, having worked on

some 13 SPM’s around the Asia region.

LEIGHTON OFFSHORE SIGNED AN EPC CONTRACT WORTH US$733 MILLION

WITH IRAQ’S SOUTH OIL COMPANY – A VITAL PROJECT IN IRAQ’S STRATEGIC ENERGY

REDEVELOPMENT PROGRAM.

NEW PROJECTS

“Being awarded the Middle East’s largest

and most prominent SPM contract is a

great honour for us and great reflection

of the strength of our capabilities,”

Savage said.

Leighton Offshore will use its vessels,

Eclipse, Stealth and Mynx on the project.

Eclipse, Stealth and Mynx are ideally

suited for working on SPM projects, and

provided Leighton a key edge in securing

this work. Leighton operates a very young

fleet of state of the art vessels, all of

which are fully compliant to latest

class and safety standards including

International Special Purpose Shipping

code.

“In the Middle East we have the benefit

of tapping into Al Habtoor Leighton” said

Savage. “Al Habtoor Leighton has an

agreement with Leighton Offshore to

provide support with logistics and

resource services for offshore projects in

the MENA region and has played a

positive role in securing this project.

“This is the first major offshore project for Leighton in the Middle East, but with the opportunities in the Gulf and the MENA region, we are very confident it will be the start of a strong business line that will provide a steady revenue volume for both Leighton Offshore and Al Habtoor Leighton.”

“This is the first major offshore project

for Leighton in the Middle East,” Savage

said, “but with the opportunities in the

Gulf and the MENA region, we are very

confident it will be the start of a strong

business line that will provide a steady

revenue volume for both Leighton

Offshore and Al Habtoor Leighton. �

COMPANY NEWS

LEIGHTON OFFSHORE HAS BEEN AWARDED A US$66M CONTRACT BY THE TANZANIA

PORTS AUTHORITY TO INSTALL A SINGLE POINT MOORING AND PIPELINES IN

RAS MJIMWEMA, DAR ES SALAAM, TANZANIA.

AFRICAN WIN FOR LEIGHTON OFFSHORE

Leighton Offshore has received the

Letter of Intent from Tanzania Ports

Authority for the removal of the existing

Single Point Mooring (SPM) buoy and

the related pipeline system at Ras

Mjimwema, outside the Port of Dar Es

Salaam, and replacement of the existing

facility with a new dual-line multi product

facility for the transfer of crude oil and

white products.

Leighton will undertake the residual

and installation engineering, supply,

installation, testing, pre-commissioning

and completion of a 24 inch pipeline

and a 28 inch pipeline (both 3.6

kilometers offshore and 4.4 kilometers

onshore) and the design, supply,


and completion of the associated dual

Pipeline End Manifold (PLEM) and SPM

system. Leighton will also be responsible

for the removal and/or abandonment of

the existing facility.


Officer, David Savage, said the award of

the project built on Leighton Offshore’s

strong track record in the installation of

SPM’s and confirmed their position as

the leading company in the region in

SPM work.

“We are very pleased to be awarded

this project in Africa, which is an exciting

market for Leighton International and

where we are exploring a range of

opportunities onshore and offshore”

he said.

The project team are currently

mobilising to the Kuala Lumpur office

where procurement and engineering will

be undertaken until the team transfer

to Tanzania in June 2011. Key start-up

activities for the team include securing

the SPM Vendor and Line Pipe Vendor

and undertaking geophysical and

geotechnical investigations along the

pipeline route corridor and proposed

SPM location.

The recently upgraded Leighton Mynx

work barge will be used to pull the

pipeline and install the PLEM and SPM

buoy in Tanzania during the second half

of 2011. �

PROJECT: ENGINEERING, PROCUREMENT & CONSTRUCTION OF SINGLE POINT MOORING AND PIPELINE SYSTEM

LOCATION: RAS MJIMWEMA, DAR ES SALAM, TANZANIA

CLIENT: TANZANIA PORTS AUTHORITY

CONTRACT VALUE: USD66 MILLION

COMMENCEMENT: SEPTEMBER 2010

COMPLETION: MARCH 2012

LOCATION: FAO TERMINAL, AL BASRAH, SOUTHERN IRAQ

CLIENT: SOUTH OIL COMPANY, IRAQ

CONTRACT TYPE: EPC LUMP SUM


COMMENCEMENT: EARLY 2011

COMPLETION: END OF 2012

“The award of the project built on Leighton Offshore’s strong track record in the installation of SPM’s. We are very pleased to be awarded this project in Africa, which is an exciting market for Leighton International and where we are exploring a range of opportunities onshore and offshore.”

18 19

MAXIMISING OFFSHORE OPPORTUNITIES IN THE GULF

The contract forms part of the Iraq

Crude Oil Export Expansion Project

(ICOEEP) which is developing offshore

loading facilities to enable export

capability of 4.5 million barrels of oil

per day.

The project scope includes:

Installation and commissioning of two

48-inch parallel pipelines, 10 kilometres

onshore and 40 kilometres offshore,

linking the new Fao onshore terminal to

the new SPMs, plus approximately 20

kilometres of infield pipelines, and the

shore crossing for a third pipeline to be

installed during future expansions (a

total of over 120 kilometres of pipeline).

Installation of SPMs complete with

subsea pipeline end manifolds (PLEMs)

capable of receiving and loading Very

Large Crude Carrier (VLCC) tankers.

Fabrication and installation of a 600MT

subsea valve manifold for directing flow

between the existing and future

offshore export facilities.

Dredging works to achieve pipeline

burial and to achieve sufficient water

depth for VLCCs mooring to the SPMs.

Construction and commissioning

(including civil, mechanical and

electrical works) for the new onshore

metering and manifold facilities at

Fao terminal.


Officer, David Savage, said “This project

is a fantastic opportunity for Leighton,

and coming closely behind the recent

SPM project win in Tanzania, provides

strong recognition of Leighton’s strength

and experience in SPM installations.

“In recent years, Leighton has built an

enviable track record on SPM’s and large

diameter pipelines, having worked on

some 13 SPM’s around the Asia region.

LEIGHTON OFFSHORE SIGNED AN EPC CONTRACT WORTH US$733 MILLION

WITH IRAQ’S SOUTH OIL COMPANY – A VITAL PROJECT IN IRAQ’S STRATEGIC ENERGY

REDEVELOPMENT PROGRAM.

NEW PROJECTS

“Being awarded the Middle East’s largest

and most prominent SPM contract is a

great honour for us and great reflection

of the strength of our capabilities,”

Savage said.

Leighton Offshore will use its vessels,

Eclipse, Stealth and Mynx on the project.

Eclipse, Stealth and Mynx are ideally

suited for working on SPM projects, and

provided Leighton a key edge in securing

this work. Leighton operates a very young

fleet of state of the art vessels, all of

which are fully compliant to latest

class and safety standards including

International Special Purpose Shipping

code.

“In the Middle East we have the benefit

of tapping into Al Habtoor Leighton” said

Savage. “Al Habtoor Leighton has an

agreement with Leighton Offshore to

provide support with logistics and

resource services for offshore projects in

the MENA region and has played a

positive role in securing this project.

“This is the first major offshore project for Leighton in the Middle East, but with the opportunities in the Gulf and the MENA region, we are very confident it will be the start of a strong business line that will provide a steady revenue volume for both Leighton Offshore and Al Habtoor Leighton.”

“This is the first major offshore project

for Leighton in the Middle East,” Savage

said, “but with the opportunities in the

Gulf and the MENA region, we are very

confident it will be the start of a strong

business line that will provide a steady

revenue volume for both Leighton

Offshore and Al Habtoor Leighton. �

COMPANY NEWS

LEIGHTON OFFSHORE HAS BEEN AWARDED A US$66M CONTRACT BY THE TANZANIA

PORTS AUTHORITY TO INSTALL A SINGLE POINT MOORING AND PIPELINES IN

RAS MJIMWEMA, DAR ES SALAAM, TANZANIA.

AFRICAN WIN FOR LEIGHTON OFFSHORE

Leighton Offshore has received the

Letter of Intent from Tanzania Ports

Authority for the removal of the existing

Single Point Mooring (SPM) buoy and

the related pipeline system at Ras

Mjimwema, outside the Port of Dar Es

Salaam, and replacement of the existing

facility with a new dual-line multi product

facility for the transfer of crude oil and

white products.

Leighton will undertake the residual

and installation engineering, supply,


and completion of a 24 inch pipeline

and a 28 inch pipeline (both 3.6

kilometers offshore and 4.4 kilometers

onshore) and the design, supply,


and completion of the associated dual

Pipeline End Manifold (PLEM) and SPM

system. Leighton will also be responsible

for the removal and/or abandonment of

the existing facility.


Officer, David Savage, said the award of

the project built on Leighton Offshore’s

strong track record in the installation of

SPM’s and confirmed their position as

the leading company in the region in

SPM work.

“We are very pleased to be awarded

this project in Africa, which is an exciting

market for Leighton International and

where we are exploring a range of

opportunities onshore and offshore”

he said.

The project team are currently

mobilising to the Kuala Lumpur office

where procurement and engineering will

be undertaken until the team transfer

to Tanzania in June 2011. Key start-up

activities for the team include securing

the SPM Vendor and Line Pipe Vendor

and undertaking geophysical and

geotechnical investigations along the

pipeline route corridor and proposed

SPM location.

The recently upgraded Leighton Mynx

work barge will be used to pull the

pipeline and install the PLEM and SPM

buoy in Tanzania during the second half

of 2011. �

PROJECT: ENGINEERING, PROCUREMENT & CONSTRUCTION OF SINGLE POINT MOORING AND PIPELINE SYSTEM

LOCATION: RAS MJIMWEMA, DAR ES SALAM, TANZANIA

CLIENT: TANZANIA PORTS AUTHORITY


COMMENCEMENT: SEPTEMBER 2010

COMPLETION: MARCH 2012

LOCATION: FAO TERMINAL, AL BASRAH, SOUTHERN IRAQ

CLIENT: SOUTH OIL COMPANY, IRAQ

CONTRACT TYPE: EPC LUMP SUM


COMMENCEMENT: EARLY 2011

COMPLETION: END OF 2012

“The award of the project built on Leighton Offshore’s strong track record in the installation of SPM’s. We are very pleased to be awarded this project in Africa, which is an exciting market for Leighton International and where we are exploring a range of opportunities onshore and offshore.”

20 21COMPANY NEWS

This year’s Health, Safety, Environment &

Community (HSEC) award was won by

the Leighton India, Oil and Gas, Pipeline

Replacement Project 2 (PRP 2) project

for the second consecutive year. And a

first for the annual award, a runner up

category was created with the Vizag

Hindustan Petroleum Corp SPM project

(HPCL) winning.

There were four projects nominated

for the award, as follows:

HPCL SPM (Leighton India, Oil

and Gas)

Ramanujan IT Park (Leighton India,

Engineering and Construction)

Shuqaiq Pipeline (Leighton Malaysia)

Each project was assessed on the

following criteria with each criteria

allocated a percentage of marks:

Health and safety audit – 30%

Environmental audit – 20%

Total recordable injury

frequency rate – 20%

Community development – 10%

Customer feedback – 10%

Innovations (Project Manager’s

presentation) – 10%

TOP HSEC PERFORMANCE RECOGNISED

The winner, PRP 2, finished with an

overall score of 82.08% and the runner

up, HPCL, came in with 76.82%. The

runner up score was slightly better

than the award winner’s score two

years ago, which demonstrates an

overall improvement of the quality of

the nominees and in general the HSEC

performance within the group.

The PRP 2 project was a clear

winner excelling in most areas, with the

second place being closely fought out

amongst the other three nominees. PRP

2 demonstrated superior leadership,

excellent compliance with the

company’s HSE management systems,

with strong support and participation of

the workforce and subcontractors.

Senthil Kumar Karmegam, Senior

Project Manager of PRP 2 said “It is

a great honour and a great moment

to accept the award twice. The award

proves the project team’s commitment

towards meeting all its targets and

complying with the company’s

expectations. We will definitely be

working hard to win it again next year.”

Tom Ord, Group Manager Health,

Safety and Environment, said “The

PRP 2 project successfully built on its

previous performance to produce an

even better result this year. Particularly

impressive was the strong participative

safety culture displayed by the whole

workforce.

“The HPCL SPM project

differentiated itself from the other

two competitors with its excellent

community development program,

themed at improving the environment,

at two local schools.” �

THE WINNERS OF THE 2010 LEIGHTON INTERNATIONAL

HSEC AWARD WERE ANNOUNCED IN SEPTEMBER

WITH TWO INDIAN OIL AND GAS PROJECTS WINNING

THE AWARD.

WINNER: PRP 2

By Zafar Khan, HSE Manager,

Leighton India, Offshore Oil & Gas

The story of PRP 2 begins with 17

people from different companies and ten

different nationalities in an office. The

marine spread was huge comprising 40

vessels with eight major mother vessels

in a very congested ONGC field.

The topside modification in the ONGC

process is an extremely risky job due to

interface with at least four barges and

contractors on the same platform. The

weather condition were also challenging

including the cyclone we faced.

With the leadership of Senthil Kumar

Karmegam, Senior Project Manager,

an action plan was implemented that

includes continuous on-the-job HSE

training with regular audits; identifying

HSE risks and micro planned solutions;

developing the cohesiveness among

the crew who belong to different

nationalities and cultures and

recognising good safe practises by the

crew through awards and appreciation.

The team was equally dedicated

to help the local community through

various programmes. Here are some

examples:

with the Maharashtra State Blood

Transfusion Council, a record

collection of 178 units of blood was

achieved on day one. Over 200

people participated, both Leighton

staff and the client, ONGC.

primary schools

the PRP 2 team felt inspired to help.

We donated clothes, stationery and

utensils.

of Mumbai who provides a platform

for their pupils to live independently

through education.

RUNNER UP: HPCL SPM PROJECT

By Deepak HN - HSE Manager,


The HPCL project team has shown

a strong commitment and a systematic

approach to HSE challenges from

the start to finish of the project. This

involved a number of critical offshore

and onshore activities at the project, in

parallel with a peak crew operating more

than 500 people at once and marine

spread of more than 10 vessels.

The project was completed with

no loss time injuries. Through good

planning from the project initial stage,

the risks across the whole project were

identified and controlled before it could

occur. The team worked systematically

with subcontractors and suppliers to

involve them in their HSE efforts.

The team also showed great social

responsibility towards the local

community. They organised programs

to promote long term education for

the local children and helped raise

awareness on the environment through

plays, awards presentation and planting

of trees. We also donated computers

to the local schools. This was highly

appreciated by the local community.

20 21COMPANY NEWS

This year’s Health, Safety, Environment &

Community (HSEC) award was won by

the Leighton India, Oil and Gas, Pipeline

Replacement Project 2 (PRP 2) project

for the second consecutive year. And a

first for the annual award, a runner up

category was created with the Vizag

Hindustan Petroleum Corp SPM project

(HPCL) winning.

There were four projects nominated

for the award, as follows:

HPCL SPM (Leighton India, Oil

and Gas)

Ramanujan IT Park (Leighton India,

Engineering and Construction)

Shuqaiq Pipeline (Leighton Malaysia)

Each project was assessed on the

following criteria with each criteria

allocated a percentage of marks:

Health and safety audit – 30%

Environmental audit – 20%

Total recordable injury

frequency rate – 20%

Community development – 10%

Customer feedback – 10%

Innovations (Project Manager’s

presentation) – 10%

TOP HSEC PERFORMANCE RECOGNISED

The winner, PRP 2, finished with an

overall score of 82.08% and the runner

up, HPCL, came in with 76.82%. The

runner up score was slightly better

than the award winner’s score two

years ago, which demonstrates an

overall improvement of the quality of

the nominees and in general the HSEC

performance within the group.

The PRP 2 project was a clear

winner excelling in most areas, with the

second place being closely fought out

amongst the other three nominees. PRP

2 demonstrated superior leadership,

excellent compliance with the

company’s HSE management systems,

with strong support and participation of

the workforce and subcontractors.

Senthil Kumar Karmegam, Senior

Project Manager of PRP 2 said “It is

a great honour and a great moment

to accept the award twice. The award

proves the project team’s commitment

towards meeting all its targets and

complying with the company’s

expectations. We will definitely be

working hard to win it again next year.”

Tom Ord, Group Manager Health,

Safety and Environment, said “The

PRP 2 project successfully built on its

previous performance to produce an

even better result this year. Particularly

impressive was the strong participative

safety culture displayed by the whole

workforce.

“The HPCL SPM project

differentiated itself from the other

two competitors with its excellent

community development program,

themed at improving the environment,

at two local schools.” �

THE WINNERS OF THE 2010 LEIGHTON INTERNATIONAL

HSEC AWARD WERE ANNOUNCED IN SEPTEMBER

WITH TWO INDIAN OIL AND GAS PROJECTS WINNING

THE AWARD.

WINNER: PRP 2

By Zafar Khan, HSE Manager,


The story of PRP 2 begins with 17

people from different companies and ten

different nationalities in an office. The

marine spread was huge comprising 40

vessels with eight major mother vessels

in a very congested ONGC field.

The topside modification in the ONGC

process is an extremely risky job due to

interface with at least four barges and

contractors on the same platform. The

weather condition were also challenging

including the cyclone we faced.

With the leadership of Senthil Kumar

Karmegam, Senior Project Manager,

an action plan was implemented that

includes continuous on-the-job HSE

training with regular audits; identifying

HSE risks and micro planned solutions;

developing the cohesiveness among

the crew who belong to different

nationalities and cultures and

recognising good safe practises by the

crew through awards and appreciation.

The team was equally dedicated

to help the local community through

various programmes. Here are some

examples:

with the Maharashtra State Blood

Transfusion Council, a record

collection of 178 units of blood was

achieved on day one. Over 200

people participated, both Leighton

staff and the client, ONGC.

primary schools

the PRP 2 team felt inspired to help.

We donated clothes, stationery and

utensils.

of Mumbai who provides a platform

for their pupils to live independently

through education.

RUNNER UP: HPCL SPM PROJECT

By Deepak HN - HSE Manager,


The HPCL project team has shown

a strong commitment and a systematic

approach to HSE challenges from

the start to finish of the project. This

involved a number of critical offshore

and onshore activities at the project, in

parallel with a peak crew operating more

than 500 people at once and marine

spread of more than 10 vessels.

The project was completed with

no loss time injuries. Through good

planning from the project initial stage,

the risks across the whole project were

identified and controlled before it could

occur. The team worked systematically

with subcontractors and suppliers to

involve them in their HSE efforts.

The team also showed great social

responsibility towards the local

community. They organised programs

to promote long term education for

the local children and helped raise

awareness on the environment through

plays, awards presentation and planting

of trees. We also donated computers

to the local schools. This was highly

appreciated by the local community.

22 23

“David’s appointment is about getting

the span of control right for the business

as we continue to grow and brings

more focus to India and the oil and

gas business, both of which have the

potential to grow into very significant

markets for Leighton. I congratulate

David on his appointment.

“The outlook for the Group remains

positive based on a record level of work

in hand, a strong competitive position

and continuing economic recovery in our

major markets,” said King.

“Demand for iron ore, coal, and oil

and gas will increase and should remain

strong as China and India urbanise and

industrialise, and maintain their solid

economic growth.

PROJECT UPDATECOMPANY NEWS

LEIGHTON ANNOUNCES

RECORD PROFIT OF $612M

AND WORK IN HAND

OF $41.5BN

QUARTERLY RESULTS Leighton Holdings

Limited announced a

39% increase in profit

after tax and minorities

to $612m ($440m last

year) and a pre-tax

profit of $843m for the

2010 financial year. The return on

shareholders’ funds averaged 25% for

the year with a record net operating

cash flow of $1.7 billion.

Leighton Holdings’ Chief Executive,

Wal King (pictured), reported that he

was very pleased to report such a

strong profit result which was based on

a solid contribution from Australia, driven

by transport infrastructure, contract

mining, telecommunications and

operations and maintenance, helping to

offset a poor year in property markets.

“Our offshore markets, with the

exception of the Middle East, also

made solid contributions to the result.

Highlights included infrastructure

construction in Hong Kong and India,

the contract mining of coal in Indonesia

and Mongolia, and offshore oil and gas

services,” said King.

“Total revenue, including joint ventures

and associates, was up 2% to $18.6bn

versus $18.3bn last year. The revenue

generating markets for the Group were

infrastructure $10.4bn, resources

$6.4bn and property and building

construction $1.8bn,” he said.

“The Group’s work in hand at 30

June 2010 was 12% higher than last

year reaching a new record high level

of $41.5bn, with 65% from Australia

and 35% from offshore markets. The

order book was boosted by the award

of some $23.5bn worth of new work,

extensions and variations during

the period.

“Since the 30th June 2010, the Group

has been awarded an additional

$1.5bn worth of new contracts and we

have approximately $8bn of contracts

which we are in a preferred or single

negotiation position that are expected

to be converted by the end of the

calendar year.

“I’m also pleased to advise that David

Savage has been appointed as an

additional Chief Operating Officer with

responsibility for Leighton International

Limited, a wholly owned subsidiary of

Leighton Holdings Limited. David was

formerly Managing Director of Leighton

International and has worked across

Asia with the Leighton Group for 12

years,” said King.

“We remain positive for the 2011

financial year and expect to report

an increased revenue and operating

profit. Over the longer-term, based on

our projections, the Group’s five-year

aspirational goals of $50bn of work in

hand, $30bn of revenue and $900m of

profit after tax can be achieved through

internally generated funds.” said King. �

“...David Savage has been appointed as an additional Chief Operating Officer with responsibility for Leighton International …David’s appointment is about getting the span of control right for the business as we continue to grow and brings more focus to India and the oil and gas business, both of which have the potential to grow into very significant markets for Leighton...”

Leighton Stealth

Labuan skyline

22 23

“David’s appointment is about getting

the span of control right for the business

as we continue to grow and brings

more focus to India and the oil and

gas business, both of which have the

potential to grow into very significant

markets for Leighton. I congratulate

David on his appointment.

“The outlook for the Group remains

positive based on a record level of work

in hand, a strong competitive position

and continuing economic recovery in our

major markets,” said King.

“Demand for iron ore, coal, and oil

and gas will increase and should remain

strong as China and India urbanise and

industrialise, and maintain their solid

economic growth.

PROJECT UPDATECOMPANY NEWS

LEIGHTON ANNOUNCES

RECORD PROFIT OF $612M

AND WORK IN HAND

OF $41.5BN

QUARTERLY RESULTS Leighton Holdings

Limited announced a

39% increase in profit

after tax and minorities

to $612m ($440m last

year) and a pre-tax

profit of $843m for the

2010 financial year. The return on

shareholders’ funds averaged 25% for

the year with a record net operating

cash flow of $1.7 billion.

Leighton Holdings’ Chief Executive,

Wal King (pictured), reported that he

was very pleased to report such a

strong profit result which was based on

a solid contribution from Australia, driven

by transport infrastructure, contract

mining, telecommunications and

operations and maintenance, helping to

offset a poor year in property markets.

“Our offshore markets, with the

exception of the Middle East, also

made solid contributions to the result.

Highlights included infrastructure

construction in Hong Kong and India,

the contract mining of coal in Indonesia

and Mongolia, and offshore oil and gas

services,” said King.

“Total revenue, including joint ventures

and associates, was up 2% to $18.6bn

versus $18.3bn last year. The revenue

generating markets for the Group were

infrastructure $10.4bn, resources

$6.4bn and property and building

construction $1.8bn,” he said.

“The Group’s work in hand at 30

June 2010 was 12% higher than last

year reaching a new record high level

of $41.5bn, with 65% from Australia

and 35% from offshore markets. The

order book was boosted by the award

of some $23.5bn worth of new work,

extensions and variations during

the period.

“Since the 30th June 2010, the Group

has been awarded an additional

$1.5bn worth of new contracts and we

have approximately $8bn of contracts

which we are in a preferred or single

negotiation position that are expected

to be converted by the end of the

calendar year.

“I’m also pleased to advise that David

Savage has been appointed as an

additional Chief Operating Officer with

responsibility for Leighton International

Limited, a wholly owned subsidiary of

Leighton Holdings Limited. David was

formerly Managing Director of Leighton

International and has worked across

Asia with the Leighton Group for 12

years,” said King.

“We remain positive for the 2011

financial year and expect to report

an increased revenue and operating

profit. Over the longer-term, based on

our projections, the Group’s five-year

aspirational goals of $50bn of work in

hand, $30bn of revenue and $900m of

profit after tax can be achieved through

internally generated funds.” said King. �

“...David Savage has been appointed as an additional Chief Operating Officer with responsibility for Leighton International …David’s appointment is about getting the span of control right for the business as we continue to grow and brings more focus to India and the oil and gas business, both of which have the potential to grow into very significant markets for Leighton...”

Leighton Stealth

Labuan skyline

24

HEAD OFFICE

Leighton International13/F Menara Multi-Purpose8 Jalan Munshi Abdullah50100 Kuala LumpurMalaysiat: +60 3 2035 1688f: +60 3 2693 4388

MALAYSIA

Leighton Contractors (Malaysia) Sdn Bhd14/F Menara Multi-Purpose8 Jalan Munshi Abdullah50100 Kuala LumpurMalaysiat: +60 3 2035 1788f: +60 3 2693 5388

SINGAPORE Leighton Offshore137 Telok Ayer Street#05-04Singapore 068602t: +65 6327 1978f: +65 6327 1969

Leighton Singapore Engineering & Construction137 Telok Ayer Street#05-04Singapore 068602t: +65 6327 1978f: +65 6327 1969

SRI LANKA

Leighton Contractors Lanka (Pvt) Ltd3/F No 34, Hunupitiya RoadColombo 02Sri Lankat: +94 11 471 4772f: +94 11 471 4770

INDIA

Leighton Contractors (India) Pvt Ltd302 - 303, 3/F Windsor BuildingCST Road, Vidyanagari MargKalina, Santacruz (East)Mumbai 400 098Indiat: +91 22 6719 0000f: +91 22 6719 0199

Unit No – 802 – 807, Eighth FloorVatika City Point, M.G. RoadGurgaon – 122002Indiat: +91 11 4608 8200f: +91 11 2677 9427 MIDDLE EAST - NORTH AFRICA

Leighton Offshore Middle EastOffice No. GO1Ground Floor, EIB Building No.05Alfa BuildingP O Box 502 656DMC #14, DubaiUnited Arab Emiratest: +971 4 423 0300 f: +971 4 427 8145

LEIGHTON INTERNATIONAL

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