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PERSPECTIVE<br />

01<br />

LEIGHT<strong>ON</strong> INTERNATI<strong>ON</strong>AL’S MAGAZINE<br />

ISSUE 05 JULY-SEPTEMBER 2010<br />

<strong>SPOTLIGHT</strong><br />

<strong>ON</strong> <strong>INDIA</strong><br />

A THRIVING MARKET<br />

<strong>Port</strong> <strong>Capabilities</strong><br />

<strong>in</strong> <strong>High</strong> <strong>Demand</strong><br />

PROJECT WINS<br />

<strong>Power</strong><br />

Through<br />

Alliances<br />

TRIL PARTNERSHIP


02<br />

LEIGHT<strong>ON</strong> INTERNATI<strong>ON</strong>AL IS <strong>ON</strong>E OF THE LEADING C<strong>ON</strong>TRACTORS<br />

AND PROJECT DEVELOPERS IN ASIA AND INTERNATI<strong>ON</strong>ALLY IN THE<br />

OFFSHORE MARKET. OUR STRENGTH IS OUR ABILITY TO DEVELOP<br />

INNOVATIVE, PRACTICAL SOLUTI<strong>ON</strong>S FOR OUR CLIENTS<br />

S<strong>in</strong>ce 1975 our unique comb<strong>in</strong>ation<br />

of local knowledge and extensive<br />

<strong>in</strong>ternational experience has made us<br />

the <strong>in</strong>ternational contractor of choice<br />

<strong>in</strong> the countries <strong>in</strong> which we operate.<br />

We operate <strong>in</strong> Malaysia, India,<br />

S<strong>in</strong>gapore, Sri Lanka and Brunei, and<br />

are expand<strong>in</strong>g further across the<br />

Central Asian Region. We employ<br />

people across four operat<strong>in</strong>g divisions:<br />

India, Malaysia, Offshore and New<br />

Markets (<strong>in</strong>clud<strong>in</strong>g Central Asia).<br />

We focus on five market segments:<br />

<br />

<br />

<br />

<br />

<br />

Leighton International is a subsidiary<br />

of Australia’s largest project development<br />

and contract<strong>in</strong>g group, the Leighton<br />

Group. We benefit from our ability to call<br />

upon the experience and technical<br />

and f<strong>in</strong>ancial expertise of the Group.<br />

Perspective is a quarterly publication<br />

produced by Leighton International. It<br />

provides <strong>in</strong>formation on developments,<br />

projects and issues relat<strong>in</strong>g to Leighton<br />

International, Leighton Hold<strong>in</strong>gs and<br />

associate companies.<br />

If you would like to receive this<br />

publication regularly, please email us<br />

at <strong>in</strong>fo@leighton<strong>in</strong>t.com <br />

Published by:<br />

Leighton International<br />

13/F Menara Multi Purpose<br />

8 Jalan Munshi Abdullah<br />

50100 Kuala Lumpur<br />

Malaysia<br />

t: +60 3 2035 1688<br />

f: +60 3 2693 4388<br />

<strong>in</strong>fo@leighton<strong>in</strong>t.com<br />

www.leighton<strong>in</strong>t.com<br />

All values are <strong>in</strong> US dollars unless otherwise <strong>in</strong>dicated.


03<br />

C<strong>ON</strong>TENTS<br />

08<br />

26<br />

16<br />

Introduction 04<br />

In Brief 05<br />

Overview<br />

Leighton & India 06<br />

Industry News<br />

Strategic Alliances 08<br />

Profiles<br />

Work<strong>in</strong>g <strong>in</strong> India 10<br />

Safety at Work 12<br />

O&G Focus 13<br />

Snapshot 14<br />

Project Updates<br />

PRP2 16<br />

Mangala Field Development<br />

Mar<strong>in</strong>e Facilities 18<br />

SPM Brunei 19<br />

New Projects<br />

Paradip <strong>Port</strong> & Visag <strong>Port</strong> 20<br />

Chenani-Nashir Tunnel 22<br />

Labuan Pipel<strong>in</strong>es 23<br />

Company News<br />

Management Development<br />

Programme 24<br />

World Environment Day 2010 25<br />

Quarterly Results 26


04 INTRODUCTI<strong>ON</strong> INTRODUCTI<strong>ON</strong><br />

THIS ISSUE WE <strong>SPOTLIGHT</strong> LEIGHT<strong>ON</strong> C<strong>ON</strong>TRACTORS<br />

<strong>INDIA</strong> – <strong>ON</strong>E OF LEIGHT<strong>ON</strong> INTERNATI<strong>ON</strong>AL’S KEY BUSINESS<br />

UNITS OPERATING IN A THRIVING C<strong>ON</strong>STRUCTI<strong>ON</strong> AND OIL<br />

AND GAS MARKET<br />

Leighton<br />

International has<br />

recently completed<br />

a successful<br />

f<strong>in</strong>ancial year, with<br />

good operational,<br />

health, safety and<br />

environmental performances across our<br />

projects. We have achieved our targets<br />

for the f<strong>in</strong>ancial year <strong>in</strong> terms of return<br />

on revenue and return on shareholders’<br />

funds, which is a great effort <strong>in</strong> a year<br />

where we have restructured and<br />

refocused the bus<strong>in</strong>ess go<strong>in</strong>g forward.<br />

S<strong>in</strong>ce the last edition of Perspective,<br />

Leighton Contractors India have secured<br />

three major new projects <strong>in</strong> India -<br />

build<strong>in</strong>g one of Asia’s longest road<br />

tunnels the Chenani-Nashri Tunnel and<br />

two mar<strong>in</strong>e construction projects, Vizag<br />

and Paradip ports expansion. These will<br />

add to the projects currently successfully<br />

underway, the TATA Ramanujan IT Park<br />

Alliance 1st project <strong>in</strong> Chennai, the<br />

Pipel<strong>in</strong>e Replacement Project 2 pipelay<br />

project and the Mangala SPM project for<br />

Cairn (you can read full reports on our<br />

latest India w<strong>in</strong>s and progress reports<br />

on the current ones <strong>in</strong> the follow<strong>in</strong>g<br />

pages of this issue).<br />

The Indian economy is forecast<br />

to achieve GDP growth of more than<br />

8% over the com<strong>in</strong>g year. There are<br />

opportunities for us across all of our<br />

markets <strong>in</strong>clud<strong>in</strong>g roads, rail, ports,<br />

build<strong>in</strong>gs, power stations, offshore oil<br />

and gas and contract m<strong>in</strong><strong>in</strong>g<br />

The Indian Government has forecast<br />

significant expenditure on <strong>in</strong>frastructure<br />

<strong>in</strong> the next five year plan (2012-2017).<br />

Of the approximately $1 trillion forecast<br />

<strong>in</strong>frastructure requirement, approximately<br />

50% ($500m) is expected to come from<br />

private sector <strong>in</strong>vestment <strong>in</strong>clud<strong>in</strong>g PPP<br />

projects.<br />

Pav<strong>in</strong>g the way for further growth<br />

<strong>in</strong> India, we are <strong>in</strong> the f<strong>in</strong>al stages of<br />

enter<strong>in</strong>g <strong>in</strong>to a strategic partnership<br />

with J<strong>in</strong>dal Group (JSW) who will take<br />

a 26% stake <strong>in</strong> the company. A strong<br />

Indian strategic partner will provide us<br />

with the support and focus to take our<br />

bus<strong>in</strong>ess to a new level (see full story<br />

on page 6).<br />

The com<strong>in</strong>g years presents a range<br />

of excit<strong>in</strong>g opportunities for Leighton<br />

International and I am certa<strong>in</strong> our<br />

operations <strong>in</strong> India will be the eng<strong>in</strong>e<br />

room driv<strong>in</strong>g our future growth. <br />

DAVID SAVAGE<br />

CHIEF OPERATING OFFICER,<br />

LEIGHT<strong>ON</strong> HOLDINGS<br />

Your feedback is important to us, and I encourage you to send any comments<br />

you may have on this issue of Perspective, or suggestions for future issues,<br />

to <strong>in</strong>fo@leighton<strong>in</strong>t.com.


IN BRIEF<br />

05<br />

IPLOCA MEMBERSHIP<br />

Leighton Offshore<br />

has been awarded<br />

membership to the<br />

International Pipel<strong>in</strong>e and<br />

Offshore Contractors<br />

Association (IPLOCA).<br />

With members <strong>in</strong> over<br />

40 countries, IPLOCA<br />

represent some 225 of<br />

the key players <strong>in</strong> the<br />

onshore and offshore<br />

pipel<strong>in</strong>e construction<br />

<strong>in</strong>dustry worldwide.<br />

The association provides a<br />

forum for shar<strong>in</strong>g ideas,<br />

facilitat<strong>in</strong>g bus<strong>in</strong>ess<br />

opportunities and<br />

promot<strong>in</strong>g the highest<br />

standards <strong>in</strong> the<br />

pipel<strong>in</strong>e <strong>in</strong>dustry.<br />

LEIGHT<strong>ON</strong> SAFETY<br />

AWARD SHORTLIST<br />

The nom<strong>in</strong>ations for<br />

this year’s Leighton<br />

International Health,<br />

Safety and Environment<br />

Award are <strong>in</strong>. Three India<br />

projects are <strong>in</strong> the runn<strong>in</strong>g<br />

(HPCL, PRP2 (see project<br />

update on page 16), TRIL)<br />

with two nom<strong>in</strong>ations from<br />

Malaysia (Shuqaiq and<br />

ARE). F<strong>in</strong>al judg<strong>in</strong>g will<br />

take place <strong>in</strong> August<br />

with the w<strong>in</strong>ner be<strong>in</strong>g<br />

announced soon after.<br />

Watch this space!<br />

BOARD MEETS AT<br />

NDT PROJECT<br />

Leighton International Board<br />

was <strong>in</strong> Malaysia for its<br />

quarterly meet<strong>in</strong>g <strong>in</strong> May.<br />

The Board members visited<br />

the Northern Double Track<br />

project <strong>in</strong> Ipoh. The project<br />

team presented a thorough<br />

overview on project<br />

establishment towards the<br />

eventual goal of upgrad<strong>in</strong>g<br />

the exist<strong>in</strong>g s<strong>in</strong>gle track<br />

railway <strong>in</strong>frastructure <strong>in</strong>to a<br />

modern Electrified Double<br />

Track<strong>in</strong>g network.<br />

MYNX UPGRADE<br />

IN FULL SWING<br />

The upgrade covers the<br />

accommodation modifications<br />

to br<strong>in</strong>g Leighton’s vessel,<br />

Mynx, to full compliance with<br />

the International SPS code and<br />

improvements to suit latest<br />

class requirements, project<br />

and client needs. The project<br />

achieved a major milestone <strong>in</strong><br />

June with the successful load<br />

out of the accommodation<br />

module <strong>in</strong> l<strong>in</strong>e with the<br />

scheduled delivery date. Once<br />

completed <strong>in</strong> mid-September,<br />

Mynx will mobilise to North-<br />

West India where she will<br />

undertake works associated<br />

with the Mangala Pipel<strong>in</strong>e<br />

Project for Cairn Energy.<br />

IN<br />

BRIEF<br />

Build<strong>in</strong>g one of Asia’s longest road tunnels <strong>in</strong> India: Leighton has won a major road<br />

tunnel job <strong>in</strong> Jammu, Northern India. The Chenani-Nashri tunnel is a 2 lane, 14 metre<br />

diameter tunnel approximately 9 kilometres long, and will be one of the longest road<br />

tunnels <strong>in</strong> Asia (see page 22).


06<br />

COMPANY NEWS<br />

LEIGHT<strong>ON</strong> IN<br />

INCREDIBLE <strong>INDIA</strong><br />

LEIGHT<strong>ON</strong> CARRIED OUT ITS FIRST PROJECT IN <strong>INDIA</strong> IN 1998. IT WAS NOT UNTIL<br />

2004. HOWEVER, THAT THE COMPANY SET UP A PERMANENT OFFICE AND THE <strong>INDIA</strong><br />

BUSINESS REALLY STARTED TO TAKE OFF.<br />

Six years later,<br />

Leighton is widely<br />

recognised for<br />

its significant<br />

achievements, and the<br />

Leighton brand has<br />

become a strongly<br />

felt presence <strong>in</strong> the India market. Those<br />

achievements <strong>in</strong>clude be<strong>in</strong>g awarded<br />

the largest contract ever awarded by<br />

India’s Oil and Natural Gas Corporation<br />

at the time, namely the Pipel<strong>in</strong>e<br />

Replacement Project 2 (and its very<br />

successful delivery to date), successful<br />

establishment and delivery of India’s<br />

first major construction project under<br />

the Alliance model for TATA Realty<br />

India Limited, and the recent award to<br />

Leighton of India’s longest road tunnel<br />

be<strong>in</strong>g the Chenani tunnel <strong>in</strong> the state<br />

of Jammu and Kashmir (full story on<br />

page 22).<br />

SETTING THE AGENDA<br />

One of the cornerstones of Leighton’s<br />

India bus<strong>in</strong>ess is its diversity. We have<br />

built factories and high rise residential<br />

towers, constructed over 100km of<br />

national highway, carried out <strong>in</strong>stallation<br />

works for not less than eight s<strong>in</strong>gle po<strong>in</strong>t<br />

moor<strong>in</strong>g systems for the import and<br />

export of crude oil and ref<strong>in</strong>ed products,<br />

laid more than 200km of subsea<br />

pipel<strong>in</strong>es, and completed topsides<br />

works at more than 80 offshore<br />

platform locations.<br />

And we cont<strong>in</strong>ue to diversify.<br />

We have work <strong>in</strong> hand to <strong>in</strong>stall<br />

telecommunications equipment for<br />

Indian Railways; we have recently been<br />

awarded two port projects on India’s<br />

east coast (see page 20), and we are<br />

work<strong>in</strong>g towards secur<strong>in</strong>g our first power<br />

sector project <strong>in</strong> the India market.


OVERVIEW<br />

07<br />

Our strength lies not <strong>in</strong> our projects<br />

however, but <strong>in</strong> our people. It is<br />

our people who have successfully<br />

delivered our projects on time and to<br />

<strong>in</strong>ternational standards of quality so that<br />

our clients keep return<strong>in</strong>g to us. It is<br />

our people who have focused on safety<br />

and ensur<strong>in</strong>g that not only do they<br />

themselves come home safely every day,<br />

but so does everyone else around them.<br />

Two projects <strong>in</strong> the last year that have<br />

achieved together over 10 million man<br />

hours without an LTI is a remarkable<br />

achievement by any standard and<br />

reflects the commitment to safety that<br />

each and every person at Leighton<br />

India has.<br />

LOOKING AHEAD<br />

The future for our India bus<strong>in</strong>ess is<br />

<strong>in</strong>credibly bright. India is a large market<br />

with strong projected growth and<br />

government committed to develop<strong>in</strong>g<br />

<strong>in</strong>frastructure to take the country <strong>in</strong>to<br />

the decades ahead. With our work<br />

history, the respect we have garnered<br />

<strong>in</strong> the market from our efforts to date,<br />

and the added ‘muscle’ available to us<br />

through our strategic partnership with<br />

the JSW Group (see attached article),<br />

Leighton India is well place to achieve<br />

its goal of becom<strong>in</strong>g a US$2 billion<br />

company with<strong>in</strong> the next three to<br />

five years.<br />

Our objective is to be the best<br />

construction company <strong>in</strong> India and we<br />

aim to set a new benchmark with every<br />

project we undertake.<br />

In the near future, we have a plethora<br />

of road projects to focus on and stand<br />

a very strong chance to secure a good<br />

selection of work <strong>in</strong> this sector. Leighton<br />

India will cont<strong>in</strong>ue its push <strong>in</strong>to the oil<br />

“Our strength lies not <strong>in</strong> our projects however,<br />

but <strong>in</strong> our people. It is our people who have<br />

successfully delivered our projects on time and<br />

to <strong>in</strong>ternational standards of quality so that our<br />

clients keep return<strong>in</strong>g to us. It is our people who<br />

have focused on safety and ensur<strong>in</strong>g that not<br />

only do they themselves come home safely every<br />

day, but so does everyone else around them.”<br />

and gas sector, target<strong>in</strong>g traditional<br />

areas such as subsea pipel<strong>in</strong>es and<br />

SPMs, as well as new areas <strong>in</strong>clud<strong>in</strong>g<br />

platform fabrication and <strong>in</strong>stallation,<br />

and work <strong>in</strong> progressively deeper<br />

waters. With India’s current shortfall <strong>in</strong><br />

generated power, we see significant new<br />

opportunities <strong>in</strong> the power sector and<br />

will cont<strong>in</strong>ue our push to w<strong>in</strong> new EPC<br />

power station work.<br />

It’s truly a great time to be <strong>in</strong> India,<br />

and to partake <strong>in</strong> the energy that is<br />

fuell<strong>in</strong>g the growth of this vast nation.<br />

Leighton India has record work <strong>in</strong> hand<br />

go<strong>in</strong>g <strong>in</strong>to the 2011 F<strong>in</strong>ancial Year. We<br />

have had a great year <strong>in</strong> 2010, and have<br />

exceeded our targets. 2011 stands to<br />

be even better. <br />

THE JINDAL PARTNERSHIP<br />

STRATEGIC BENEFITS FOR LEIGHT<strong>ON</strong> <strong>INDIA</strong><br />

JSW Group is part of the US$ 8 billion O.P. J<strong>in</strong>dal Group. Led by Sajjan J<strong>in</strong>dal, it is a multi bus<strong>in</strong>ess conglomerate worth<br />

approximately US $3.7 Billion. The JSW Group employs more than 8,500 employees, and has diversified <strong>in</strong>terests <strong>in</strong> steel,<br />

energy, m<strong>in</strong>erals and m<strong>in</strong><strong>in</strong>g, <strong>in</strong>frastructure and logistics, and <strong>in</strong>vestments.<br />

Leighton India is f<strong>in</strong>aliz<strong>in</strong>g the sale of a 26% stake to JSW. JSW’s relationships and market presence will generate further<br />

opportunities, and support exist<strong>in</strong>g opportunities, for the Indian arm of Leighton International.


08<br />

INDUSTRY NEWS<br />

THE <strong>INDIA</strong><br />

ALLIANCE<br />

ADVANTAGE<br />

P. D. KARKARIA, TATA EXECUTIVE DIRECTOR, SHARES<br />

HIS VIEW <strong>ON</strong> THE POWER OF STRATEGIC ALLIANCES<br />

AND WORKING WITH LEIGHT<strong>ON</strong> TO PI<strong>ON</strong>EER THE<br />

PROVEN PROJECT DELIVERY SYSTEM IN <strong>INDIA</strong><br />

TATA Realty and<br />

Infrastructure Limited<br />

(TRIL) is develop<strong>in</strong>g<br />

Ramanujan IT Park, a<br />

multi product SEZ at<br />

Chennai, capital of the<br />

State of Tamil Nadu <strong>in</strong><br />

India. At the time when we secured this<br />

project, the order backlog of most of the<br />

large construction firms was very healthy<br />

and many of the developers had no<br />

choice but to implement their crucial<br />

projects through cost-plus arrangement.<br />

We needed the construction firm on<br />

board <strong>in</strong> the <strong>in</strong>itial stage of the project<br />

to ensure quick commencement of the<br />

field activities.<br />

We at that stage had discussions with<br />

representatives of reputed construction<br />

firms about the project delivery system<br />

favored by them for this prestigious<br />

project and, as expected, most of them<br />

were of the op<strong>in</strong>ion that cost-plus is<br />

the best option consider<strong>in</strong>g the time<br />

constra<strong>in</strong>t. It takes generally six months<br />

to get approvals from various<br />

Government authorities and float an<br />

<strong>in</strong>quiry if it is an item rate contract.<br />

Evaluation of quotes received and then<br />

appo<strong>in</strong>t<strong>in</strong>g a contractor takes a couple<br />

of months more. We had no such float<br />

<strong>in</strong> our program.<br />

FORMING AN ALLIANCE<br />

At that stage, Leighton <strong>in</strong>dicated to us<br />

about the prevalence of a proven project<br />

delivery system adopted <strong>in</strong> Australia for<br />

more than a decade called ‘Alliance’<br />

also known as relationship contract<strong>in</strong>g.<br />

Consider<strong>in</strong>g the fundamental pr<strong>in</strong>ciples<br />

of such an arrangement like<br />

collaborative approach, open book, risk<br />

shar<strong>in</strong>g, no blame and pa<strong>in</strong>/ga<strong>in</strong> share,<br />

we decided to study the concept.<br />

After visits to some of the projects<br />

<strong>in</strong> Australia and check<strong>in</strong>g the positive<br />

outcome vis-à-vis traditional contracts,<br />

we decided that an <strong>in</strong>novative<br />

organisation like TATA should become a<br />

pioneer <strong>in</strong> br<strong>in</strong>g<strong>in</strong>g this concept to India<br />

for the benefit of the <strong>in</strong>dustry. Also, the<br />

arrangement was found more equitable.<br />

The process of form<strong>in</strong>g the Alliance<br />

was commenced with help of a<br />

facilitator and we entered <strong>in</strong>to an Interim<br />

Alliance Agreement (IAA) with the key<br />

consultants. The Alliance Manager,<br />

Bruce Carter, was selected from<br />

Leighton and under him, key persons<br />

from TATA as well as other consultants<br />

were posted <strong>in</strong> the Alliance management<br />

team.<br />

The site activities commenced after<br />

the <strong>in</strong>itial approval process was over.<br />

The excavation and shore pil<strong>in</strong>g work<br />

was commenced while the detailed<br />

design work was progress<strong>in</strong>g<br />

simultaneously. F<strong>in</strong>ally, the Target<br />

Outturn Cost (TOC) was f<strong>in</strong>alised along<br />

with the terms of Project Alliance<br />

Agreement (PAA) <strong>in</strong> May 2009.<br />

PROJECT KICK OFF<br />

S<strong>in</strong>ce <strong>in</strong>ception, we have observed a<br />

very satisfactory progress of the project.<br />

With the site be<strong>in</strong>g <strong>in</strong> city limits, heavy<br />

vehicles are allowed to enter the<br />

premises only from 10.00 pm to 6.00<br />

am. It needs excellent plann<strong>in</strong>g to<br />

monitor the supply of bulk materials,<br />

disposal of excavated materials and<br />

manage logistic issues. The site team<br />

led by Mr Carter has managed it<br />

extremely efficiently.<br />

Time, cost, <strong>in</strong>novations and safety are<br />

monitored monthly and I am glad to<br />

<strong>in</strong>dicate that on all accounts the Alliance<br />

has performed better. It achieved the<br />

first milestone of complet<strong>in</strong>g the raft of<br />

the basements successfully a month<br />

ahead of schedule.<br />

QUALITY C<strong>ON</strong>TROL<br />

The safety policy of Leighton is be<strong>in</strong>g<br />

strictly implemented and it is very robust.<br />

The site has achieved more than 5<br />

million <strong>in</strong>cident free man hours. Special<br />

care is be<strong>in</strong>g taken to tra<strong>in</strong> the new<br />

workmen enrolled by specialist agencies.<br />

The labour facilities are much better than<br />

generally observed else where.<br />

The Alliance team hav<strong>in</strong>g larger<br />

representation of Leighton has carried<br />

out the task of coord<strong>in</strong>ation with<br />

specialist agencies and consultants very<br />

well and the quality of product is be<strong>in</strong>g<br />

appreciated by all. Many <strong>in</strong>novations<br />

were carried out by the site team to


NEW PROJECTS<br />

09<br />

improve the productivity and they are<br />

be<strong>in</strong>g regularly monitored. Leighton<br />

has adopted an <strong>in</strong> house cost<strong>in</strong>g and<br />

monitor<strong>in</strong>g system and the outputs are<br />

be<strong>in</strong>g shared with top management at<br />

regular <strong>in</strong>tervals.<br />

WORKING WITH LEIGHT<strong>ON</strong><br />

We are very pleased to work with<br />

Leighton under the Alliance concept and<br />

the project is gett<strong>in</strong>g visibility among<br />

other large developers and construction<br />

organizations <strong>in</strong> India.<br />

We are sure that Leighton will be<br />

able to execute more projects with this<br />

advanced project delivery method <strong>in</strong><br />

India and successfully demonstrate<br />

how it benefits all stakeholders.<br />

We <strong>in</strong> TRIL are mov<strong>in</strong>g ahead with<br />

adopt<strong>in</strong>g the basic pr<strong>in</strong>ciples on other<br />

projects of TRIL. It helps <strong>in</strong> controll<strong>in</strong>g<br />

an adversarial environment among the<br />

teams to an extent.<br />

I am sure that the Ramanujan City<br />

project will demonstrate to Indian<br />

<strong>in</strong>dustry the skills of Leighton <strong>in</strong><br />

manag<strong>in</strong>g complex large projects<br />

and the advantage of work<strong>in</strong>g with<br />

a collaborative approach. <br />

RAMANUJAN<br />

IT PARK<br />

A SNAPSHOT<br />

One of the most significant projects <strong>in</strong> Leighton India’s portfolio is the prestigious<br />

Ramanujan IT Park. The US$240 million mixed-use development is be<strong>in</strong>g built <strong>in</strong><br />

a special economic zone <strong>in</strong> Chennai for Tata Realty and Infrastructure Ltd. (TRIL).<br />

The project is an Alliance contract compris<strong>in</strong>g TRIL, Leighton and a number of<br />

specialist consultants, with jo<strong>in</strong>t responsibility for the design, construction and<br />

commission<strong>in</strong>g of the project. This Alliance is a first <strong>in</strong> the Indian construction<br />

<strong>in</strong>dustry. The IT park covers 755,000 square-metres of built-up area compris<strong>in</strong>g<br />

a mixture of IT offices, a convention centre, retail, residential, food outlets,<br />

enterta<strong>in</strong>ment and car park facilities. The project has dist<strong>in</strong>ct elements - a<br />

process<strong>in</strong>g zone (PZ) and a non-process<strong>in</strong>g zone (NPZ).<br />

The PZ, which is Phase One of the project, is comprised of four 14-storey<br />

towers <strong>in</strong> 370,000 square meters of built-up area, <strong>in</strong>clud<strong>in</strong>g three levels of<br />

basement park<strong>in</strong>g and two further park<strong>in</strong>g levels over 17 acres, and a Utilities<br />

Build<strong>in</strong>g. This PZ will house approximately 40,000 IT employees and 10,000<br />

cars and is scheduled to be completed by December 2011.<br />

Phase Two is the NPZ, which will house residential and retail facilities, an<br />

enterta<strong>in</strong>ment/convention centre and car park, and is due for completion by<br />

the end of 2012.<br />

Leighton India project team led by Bruce Carter, has hit all of its milestone<br />

dates to date. The PZ build<strong>in</strong>gs are 80% completed with the NPZ <strong>in</strong> its f<strong>in</strong>al<br />

concept design stage.


10 PROFILES<br />

WORKING IN <strong>INDIA</strong><br />

NAME: ASHISH AGARWAL<br />

JOB TITLE: CHIEF FINANCIAL<br />

OFFICER, OIL AND<br />

GAS DIVISI<strong>ON</strong><br />

LOCATI<strong>ON</strong>: MUMBAI, <strong>INDIA</strong><br />

PROJECT: CORPORATE OFFICE<br />

What do you th<strong>in</strong>k sets<br />

Leighton apart from other<br />

contractors <strong>in</strong> India?<br />

In O&G bus<strong>in</strong>ess where stakes are very<br />

high, Leighton is one contractor which<br />

has unparalleled HSE standards. It has<br />

a good track record of successfully<br />

complet<strong>in</strong>g various SPM jobs and<br />

pipel<strong>in</strong>e replacement jobs and has at<br />

present three barges best suitable<br />

for the k<strong>in</strong>d of jobs it is presently<br />

undertak<strong>in</strong>g <strong>in</strong> India waters. In addition<br />

it has strong back<strong>in</strong>g of Leighton Group<br />

both operationally and f<strong>in</strong>ancially.<br />

What are you <strong>in</strong>itial<br />

impressions of start<strong>in</strong>g<br />

work <strong>in</strong> Leighton India?<br />

I jo<strong>in</strong>ed Leighton India <strong>in</strong> May 2008 at<br />

the time when it had just won two big<br />

projects, PRP2 and B<strong>in</strong>a, and was<br />

tak<strong>in</strong>g a big leap <strong>in</strong> the offshore<br />

bus<strong>in</strong>ess. Employee morale was high<br />

and it had a closely knit team which<br />

was grow<strong>in</strong>g every day.<br />

Leighton is one organisation that<br />

takes good care of its employees,<br />

quite evident from the 2% attrition rate<br />

and various employee value proposition<br />

activities be<strong>in</strong>g managed <strong>in</strong> India O&G<br />

bus<strong>in</strong>ess. Leighton <strong>in</strong>itially struggled to<br />

cope with the bureaucratic set up<br />

of clients and various government<br />

organisations but has now efficiently<br />

overcome these problems.<br />

What do you th<strong>in</strong>k are the<br />

key challenges to your job?<br />

One of the biggest challenges is to<br />

ensure that the rapidly grow<strong>in</strong>g India<br />

bus<strong>in</strong>ess not only complies with<br />

Leighton’s policies and procedures, but<br />

also fulfils complex Indian corporate<br />

regulations. In the present world where<br />

cash is k<strong>in</strong>g, another big challenge for<br />

me has been to manage bus<strong>in</strong>ess cash<br />

flow <strong>in</strong> an optimum manner.<br />

How do you f<strong>in</strong>d liv<strong>in</strong>g<br />

and work<strong>in</strong>g <strong>in</strong> India?<br />

After spend<strong>in</strong>g seven years <strong>in</strong> the Gulf,<br />

the first year <strong>in</strong> India was a challenge<br />

for the entire family, specially my kid.<br />

Professionally, India is a great place to<br />

learn and develop professional skills.<br />

Almost every day is a challenge and a<br />

new learn<strong>in</strong>g experience. On a personal<br />

front, my family and I enjoy a great<br />

social life. <br />

“In the present world where cash is k<strong>in</strong>g,<br />

another big challenge for me has been to manage<br />

bus<strong>in</strong>ess cash flow <strong>in</strong> an optimum manner”<br />

What do you see are the key<br />

strengths of the bus<strong>in</strong>ess?<br />

Leighton India O&G bus<strong>in</strong>ess has a<br />

strong <strong>in</strong>tegrated team of professional<br />

employees led by efficient<br />

entrepreneurial management. It has built<br />

a reputation of a contractor which fully<br />

understands client’s need and goes an<br />

extra mile to satisfy the client’s<br />

requirement to build long term<br />

relationship.


PROFILES<br />

11<br />

What are your <strong>in</strong>itial<br />

impressions of start<strong>in</strong>g<br />

work <strong>in</strong> Leighton India?<br />

When I first arrived I noticed cows on<br />

the streets and workers heat<strong>in</strong>g bitumen<br />

<strong>in</strong> 44 gallon drums along the side of the<br />

road rather than us<strong>in</strong>g premixed asphalt<br />

and a spreader. We had workers<br />

build<strong>in</strong>g dra<strong>in</strong>s with bricks rather than<br />

us<strong>in</strong>g precast culverts.<br />

My first impression was the high use<br />

and acceptance of manual labour to do<br />

just about any task. There was very little<br />

use of normally accepted site plant.<br />

Look<strong>in</strong>g around everywhere you could<br />

see many local projects started and<br />

generally left only partly f<strong>in</strong>ished.<br />

What do you see are the key<br />

strengths of the bus<strong>in</strong>ess?<br />

Leighton br<strong>in</strong>gs a wealth of <strong>in</strong>ternational<br />

experience to bear <strong>in</strong> a market that is<br />

grow<strong>in</strong>g exponentially. The Leighton ‘can<br />

do’ approach and deliver<strong>in</strong>g on our<br />

promise creates very satisfied clients.<br />

We f<strong>in</strong>ish our work and meet, or exceed,<br />

<strong>in</strong>dustry quality standards.<br />

What do you th<strong>in</strong>k are the<br />

key challenges to your job?<br />

As a company we all need to be self<br />

driven and to achieve higher standards<br />

of accountability and performance with<br />

our teams. Ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g focus and not<br />

gett<strong>in</strong>g sidetracked.<br />

What do you th<strong>in</strong>k sets<br />

Leighton apart from other<br />

contractors <strong>in</strong> India?<br />

Leighton can draw on its expertise<br />

from all over the world and has an<br />

<strong>in</strong>ternational vision not limited to national<br />

norms. This enables us to look further<br />

ahead and be already solv<strong>in</strong>g<br />

tomorrow’s problems today. This makes<br />

us proactive <strong>in</strong> a reactive market.<br />

How do you f<strong>in</strong>d liv<strong>in</strong>g<br />

and work<strong>in</strong>g <strong>in</strong> India?<br />

India is described as ‘<strong>in</strong>credible’ which<br />

really sums up what th<strong>in</strong>gs are like here.<br />

There is a cont<strong>in</strong>ual buzz from the<br />

moment you arrive at the airport.<br />

Anybody com<strong>in</strong>g to our offices<br />

automatically sees and feels the activity<br />

and energy. It’s a reward<strong>in</strong>g challenge<br />

to work here. <br />

“Leighton br<strong>in</strong>gs a wealth<br />

of <strong>in</strong>ternational experience<br />

to bear <strong>in</strong> a market that is<br />

grow<strong>in</strong>g exponentially”<br />

NAME: PAUL KORD<strong>ON</strong>IS<br />

JOB TITLE: NATI<strong>ON</strong>AL GM -<br />

MANAGEMENT SYSTEMS<br />

LOCATI<strong>ON</strong>: MUMBAI, <strong>INDIA</strong><br />

PROJECT: CORPORATE OFFICE


12 PROFILES<br />

SAFETY AT WORK<br />

NAME: SANKARA SUBRAMANIAN<br />

JOB TITLE: SAFETY MANAGER<br />

LOCATI<strong>ON</strong>: CHENNAI, <strong>INDIA</strong><br />

PROJECT: TATA RAMANUJAN IT PARK<br />

What are you <strong>in</strong>itial<br />

impressions of start<strong>in</strong>g<br />

work <strong>in</strong> Leighton India?<br />

I jo<strong>in</strong>ed Leighton India for the Nokia<br />

project five years ago. I was very<br />

impressed with the way the company<br />

focussed on HSE. There is a strong<br />

commitment to ensure employees are<br />

work<strong>in</strong>g <strong>in</strong> a safe, healthy and positive<br />

work<strong>in</strong>g environment.<br />

What do you see are the key<br />

strengths of the bus<strong>in</strong>ess?<br />

Occupational health and safety is a<br />

priority for Leighton International and<br />

our safety record is a key competitive<br />

advantage. We have an approachable<br />

management that encourages staff to<br />

express our views.<br />

What do you th<strong>in</strong>k sets<br />

Leighton apart from other<br />

contractors <strong>in</strong> India?<br />

Leighton has more quality concentration<br />

than any other contractor <strong>in</strong> the region. I<br />

experienced this first hand through the<br />

different projects I’ve been <strong>in</strong>volved with,<br />

the standards are very high.<br />

How do you f<strong>in</strong>d liv<strong>in</strong>g<br />

and work<strong>in</strong>g <strong>in</strong> India?<br />

Be<strong>in</strong>g born <strong>in</strong> South India, I am proud to<br />

work <strong>in</strong> my native place of Tamil Nadu<br />

where I can make significant change <strong>in</strong><br />

the safety culture whilst work<strong>in</strong>g with<br />

Leighton India. <br />

“Occupational health and safety is a priority for<br />

Leighton International and our safety record is a<br />

key competitive advantage”<br />

What do you th<strong>in</strong>k are the<br />

key challenges to your job?<br />

The implementation of HSE<br />

management systems <strong>in</strong> India. Initially it<br />

was very difficult with each project but<br />

th<strong>in</strong>gs have improved over the past few<br />

years. We are also work<strong>in</strong>g hard to<br />

implement good safety standard and<br />

culture with sub-contractors.


PROFILES<br />

13<br />

How long have you been<br />

work<strong>in</strong>g <strong>in</strong> the <strong>in</strong>dustry?<br />

I hold about 22 years of experience <strong>in</strong><br />

the <strong>in</strong>dustry. I started off as a tra<strong>in</strong>ee<br />

eng<strong>in</strong>eer <strong>in</strong> 1998, moved up the ladder<br />

and managed various projects <strong>in</strong> UAE,<br />

SEA, Australia and Indian regions before<br />

jo<strong>in</strong><strong>in</strong>g Leighton <strong>in</strong> 2008 for the PRP2<br />

project <strong>in</strong> India.<br />

What are you <strong>in</strong>itial<br />

impressions of start<strong>in</strong>g<br />

work <strong>in</strong> Leighton India?<br />

It was absolutely a great feel and a very<br />

smooth absorption. I was gifted with a<br />

fully devoted and supportive team who<br />

was always ready to jo<strong>in</strong> hands to<br />

achieve the set targets and objectives<br />

of PRP2.<br />

What do you see are the key<br />

strengths of the bus<strong>in</strong>ess?<br />

A workforce full of experienced<br />

professionals ready to take on any<br />

challenges, our excellent reputation <strong>in</strong><br />

the market, satisfied clients, access to<br />

perfect custom made mar<strong>in</strong>e fleet and<br />

upcom<strong>in</strong>g bus<strong>in</strong>ess fronts.<br />

What do you th<strong>in</strong>k sets<br />

Leighton apart from other<br />

contractors <strong>in</strong> India?<br />

It starts with a strong track record of<br />

successful deliveries, provid<strong>in</strong>g added<br />

value and <strong>in</strong>novative solutions to<br />

customer’s needs, and absolute<br />

commitment to provide HSE to all<br />

employees. And quite simply, ‘local<br />

knowledge, <strong>in</strong>ternational experience’. <br />

“I was gifted with a fully<br />

devoted and supportive<br />

team who was always<br />

ready to jo<strong>in</strong> hands to<br />

achieve the set targets<br />

and objectives”<br />

What do you th<strong>in</strong>k are the<br />

key challenges to your job?<br />

For the current project I’m work<strong>in</strong>g on,<br />

my aim is to manage a peak offshore<br />

spread cost of around US$700,000 per<br />

day, br<strong>in</strong>g<strong>in</strong>g 1,200 team members back<br />

home safely from offshore and a real<br />

time conversion of all project<br />

achievements <strong>in</strong>to cash.<br />

Go<strong>in</strong>g forward, plac<strong>in</strong>g ourselves<br />

stronger <strong>in</strong> a grow<strong>in</strong>g competitive O&G<br />

market to ga<strong>in</strong> bus<strong>in</strong>ess opportunities<br />

and to keep our resources fully engaged.<br />

INVESTING O&G FOCUS IN LEIGHT<strong>ON</strong><br />

NAME: SENTHIL KUMAR<br />

JOB TITLE: SENIOR PROJECT MANAGER<br />

LOCATI<strong>ON</strong>: MUMBAI, <strong>INDIA</strong><br />

PROJECT: PIPELINE REPLACEMENT PROJECT,<br />

SEAS<strong>ON</strong> 2 (PRP2)


14 XXXXXXXXXXXXX<br />

SNAPSHOT<br />

Leighton Eclipse pipelay<strong>in</strong>g on the<br />

Pipel<strong>in</strong>e Replacement 2 project, offshore<br />

from Mumbai, India.


16<br />

PROJECT UPDATES<br />

LEIGHT<strong>ON</strong> FINISHES<br />

PRP SEAS<strong>ON</strong> TWO<br />

IN STYLE<br />

LEIGHT<strong>ON</strong> AMASSED A NUMBER OF OUTSTANDING ACHIEVEMENTS AS IT<br />

SUCCESSFULLY COMPLETED ANOTHER SEAS<strong>ON</strong> OF PIPELINE REPLACEMENT WORKS<br />

FOR THE OIL AND NATURAL GAS CORPORATI<strong>ON</strong> (<strong>ON</strong>GC) OFF <strong>INDIA</strong>’S WEST COAST<br />

The PRP2 (Pipel<strong>in</strong>e Replacement Project<br />

Season 2) was the highest valued<br />

contract ever awarded by <strong>ON</strong>GC, India’s<br />

lead<strong>in</strong>g upstream O&G company, at<br />

the time.<br />

Leighton’s scope of work consists<br />

of full eng<strong>in</strong>eer<strong>in</strong>g, procurement,<br />

fabrication and <strong>in</strong>stallation of 178 km of<br />

rigid pipel<strong>in</strong>es, 54 km flexible pipel<strong>in</strong>es<br />

and 78 platform topside modifications<br />

spread over three seasons.<br />

PROJECT SCOPE<br />

Leighton has over 35 years experience<br />

as Asia’s largest project developer and<br />

construction contractor operat<strong>in</strong>g <strong>in</strong><br />

countries such as Malaysia, Indonesia,<br />

S<strong>in</strong>gapore, Brunei and Sri Lanka. Its<br />

offshore <strong>in</strong>dustry represents a key area<br />

of growth for the Group.<br />

The company operates a fleet of<br />

state-of-the-art mar<strong>in</strong>e equipment suited<br />

for the full range of offshore and subsea<br />

construction works <strong>in</strong> water depths up<br />

to 150m, and is the region’s pre-em<strong>in</strong>ent<br />

SPM <strong>in</strong>stallation contractor.<br />

In the first season for the PRP2,<br />

Leighton completed 51 km of rigid<br />

pipel<strong>in</strong>es, 18 km of flexible pipel<strong>in</strong>es<br />

and 18 nos of platform modifications<br />

between October 2008 and May 2009.<br />

Due to the large volume of work,<br />

Leighton mobilized mar<strong>in</strong>e spread as<br />

early as September 2009 to assure<br />

“This project is a testament to the capability and<br />

capacity of Leighton to successfully deliver even the<br />

most challeng<strong>in</strong>g projects”<br />

timely completion of the second<br />

season. The scope of work covered<br />

some 81 km of rigid pipel<strong>in</strong>es,17 km of<br />

flexible pipel<strong>in</strong>es and 40 nos of platform<br />

modifications, <strong>in</strong>clud<strong>in</strong>g 11 modifications<br />

at large offshore production complexes.<br />

MAJOR MILEST<strong>ON</strong>ES<br />

Dur<strong>in</strong>g the season two campaign,<br />

Leighton amassed a number of<br />

outstand<strong>in</strong>g achievements. Leighton’s<br />

modern purpose-built barge, Eclipse,<br />

successfully laid 235 jo<strong>in</strong>ts (2800 m) of<br />

rigid pipe <strong>in</strong> one 24 hour period, topp<strong>in</strong>g<br />

the record for pipe laid <strong>in</strong> a s<strong>in</strong>gle day by<br />

any contractor <strong>in</strong> <strong>ON</strong>GC fields <strong>in</strong> India.<br />

Leighton Eclipse went on to set field<br />

records for riser <strong>in</strong>stallation by stack-on<br />

method and riser removal.<br />

Leighton also registered records for<br />

lay<strong>in</strong>g 2700 m of flexible pipel<strong>in</strong>e <strong>in</strong> a<br />

s<strong>in</strong>gle day and for the highest number<br />

of platform modifications completed <strong>in</strong><br />

a s<strong>in</strong>gle season by any contractor.<br />

At peak, Leighton had a total of 34<br />

vessels and around 1200 men offshore<br />

dur<strong>in</strong>g season two. The project also<br />

achieved over 4.4 million man-hours<br />

without LTI and received a number of<br />

awards for its safety performance.<br />

Senthil Kumar, PRP2’s Senior Project<br />

Manager, described the success of<br />

the project to date, “It has been an<br />

exceptional team effort that <strong>in</strong>cluded<br />

extensive <strong>in</strong>-depth plann<strong>in</strong>g, preparation<br />

and coord<strong>in</strong>ation.<br />

“The team has now kicked off the<br />

preparations for season three and we<br />

expect even better results this year,”<br />

he said.


17<br />

CEO of Leighton India’s Oil and Gas<br />

division, Jignesh Dersari added: “This<br />

project is a testament to the capability<br />

and capacity of Leighton to successfully<br />

deliver even the most challeng<strong>in</strong>g<br />

projects.<br />

“Our India bus<strong>in</strong>ess cont<strong>in</strong>ues to<br />

grow and we cont<strong>in</strong>ue to build a strong<br />

client base through successful project<br />

delivery.”


18<br />

COMPANY NEWS<br />

PIPELAYING<br />

HEATING UP IN GUJARAT<br />

THE PRESTIGIOUS MANGALA FIELD DEVELOPMENT PROJECT COMPRISES OF THE<br />

WORLD’S L<strong>ON</strong>GEST C<strong>ON</strong>TINUOUSLY HEATED AND INSULATED CRUDE OIL PIPELINE.<br />

<strong>ON</strong>CE COMPLETED, IT WILL BE THE FIRST HEATED AND INSULATED OFFSHORE<br />

PIPELINE TO BE INSTALLED IN <strong>INDIA</strong>.<br />

LOCATI<strong>ON</strong>:<br />

BHOGAT, GUJARAT, <strong>INDIA</strong><br />

CLIENT:<br />

CAIRN ENERGY <strong>INDIA</strong> PTY LTD<br />

C<strong>ON</strong>TRACT VALUE:<br />

USD 68 MILLI<strong>ON</strong><br />

COMMENCEMENT:<br />

NOVEMBER 2009<br />

COMPLETI<strong>ON</strong>:<br />

MARCH 2011<br />

Leighton was awarded an EPC Contract<br />

from Cairn Energy for the <strong>in</strong>stallation of<br />

a S<strong>in</strong>gle Po<strong>in</strong>t Moor<strong>in</strong>g (SPM) System <strong>in</strong><br />

November last year.<br />

The project comprises of eng<strong>in</strong>eer<strong>in</strong>g,<br />

procurement and <strong>in</strong>stallation of a SPM<br />

system <strong>in</strong> 30 meters water depth, and<br />

the <strong>in</strong>stallation of tw<strong>in</strong>, heated and<br />

<strong>in</strong>sulated, six kilometers of 24 <strong>in</strong>ches<br />

concrete coated steel submar<strong>in</strong>e<br />

pipel<strong>in</strong>es for export of crude oil.<br />

PAVING THE WAY<br />

This project forms part of Cairn Energy’s<br />

esteemed Mangala Field development<br />

project which comprises the world’s<br />

longest cont<strong>in</strong>uously heated and<br />

<strong>in</strong>sulated crude oil pipel<strong>in</strong>e - 670<br />

kilometers from Barmer <strong>in</strong> Rajasthan to<br />

Bhogat along the coast of Gujarat. This<br />

is also the first heated and <strong>in</strong>sulated<br />

offshore pipel<strong>in</strong>e to be <strong>in</strong>stalled <strong>in</strong> India.<br />

Abshalome Reuben who heads the<br />

project team said: “This will be the<br />

seventh SPM system <strong>in</strong>stalled and<br />

commissioned by Leighton <strong>in</strong> India<br />

<strong>in</strong> the last three years and further<br />

strengthens Leighton’s position as the<br />

preferred contractor for near shore<br />

<strong>in</strong>stallations <strong>in</strong> India.<br />

“The project opens up new<br />

opportunities of partner<strong>in</strong>g with Cairn<br />

Energy, who currently operates assets<br />

on the East and West Coast of India,<br />

for additional work <strong>in</strong> their exist<strong>in</strong>g and<br />

upcom<strong>in</strong>g assets.”<br />

KEY CHALLENGES<br />

The project has many technical<br />

challenges and is be<strong>in</strong>g performed on<br />

an extremely tight schedule. A major<br />

part of the project <strong>in</strong>volves dredg<strong>in</strong>g the<br />

seabed strata which consists of ma<strong>in</strong>ly<br />

rock. A cutter suction dredger is be<strong>in</strong>g<br />

mobilised from the UAE to perform this<br />

work. The tw<strong>in</strong> pipel<strong>in</strong>es will be welded<br />

onshore <strong>in</strong> str<strong>in</strong>gs and once the trench is<br />

cut open, the tw<strong>in</strong> six kilometer pipel<strong>in</strong>es<br />

will be pulled offshore <strong>in</strong> a s<strong>in</strong>gle bundle<br />

us<strong>in</strong>g a specialised 800 ton l<strong>in</strong>ear w<strong>in</strong>ch<br />

mounted on Leighton’s Mynx work<br />

barge.<br />

The ma<strong>in</strong> project team is set up <strong>in</strong><br />

Mumbai, with a team at site <strong>in</strong>volved <strong>in</strong><br />

sett<strong>in</strong>g up the camp, office facilities and<br />

str<strong>in</strong>g<strong>in</strong>g yard. The project is currently <strong>in</strong><br />

the eng<strong>in</strong>eer<strong>in</strong>g and procurement phase<br />

with permanent works eng<strong>in</strong>eer<strong>in</strong>g for<br />

pipel<strong>in</strong>e be<strong>in</strong>g carried out by IntecSEA<br />

<strong>in</strong> Malaysia and eng<strong>in</strong>eer<strong>in</strong>g and<br />

manufacture for the SPM system by<br />

Bluewater <strong>in</strong> Holland. Residual and<br />

<strong>in</strong>stallation eng<strong>in</strong>eer<strong>in</strong>g is be<strong>in</strong>g carried<br />

out by LYE Eng<strong>in</strong>eer<strong>in</strong>g <strong>in</strong> Malaysia and<br />

Seal Eng<strong>in</strong>eer<strong>in</strong>g <strong>in</strong> France.<br />

Specialised pipe handl<strong>in</strong>g equipment<br />

for onshore str<strong>in</strong>g<strong>in</strong>g yard is be<strong>in</strong>g<br />

fabricated at various fabrication<br />

yards <strong>in</strong> India. Onshore pipe str<strong>in</strong>g<strong>in</strong>g<br />

is expected to commence on 1 st<br />

September with offshore works<br />

commenc<strong>in</strong>g a month later. The project<br />

is scheduled to be completed by 31 <br />

March 2011.


PROJECT UPDATES<br />

DELIVERING <strong>ON</strong><br />

TARGET IN BRUNEI<br />

19<br />

SPM AND PLEM SYSTEM AND OFFSHORE PIPELINE FOR BRUNEI METHANOL PLANT<br />

Leighton Contractors Malaysia<br />

successfully completed a $73 million<br />

project for the Brunei Economic<br />

Development Board (BEDB) <strong>in</strong> April this<br />

year. BEDB developed the facility as an<br />

export term<strong>in</strong>al for the methanol plant <strong>in</strong><br />

the Sungai Liang Industrial Park. The<br />

<strong>in</strong>dustrial park is a significant undertak<strong>in</strong>g<br />

by the Brunei Government to diversify its<br />

economy towards more non-petroleum<br />

related bus<strong>in</strong>esses.<br />

Work started <strong>in</strong> September 2008<br />

cover<strong>in</strong>g the <strong>in</strong>stallation eng<strong>in</strong>eer<strong>in</strong>g,<br />

procurement and commission<strong>in</strong>g of a 24<br />

<strong>in</strong>ch diameter, 13.4 kilometre long<br />

offshore pipel<strong>in</strong>e. This covered the<br />

eng<strong>in</strong>eer<strong>in</strong>g, procurement, <strong>in</strong>stallation and<br />

commission<strong>in</strong>g of the associated Pipel<strong>in</strong>e<br />

End Manifold (PLEM) and SPM systems.<br />

The pipel<strong>in</strong>e system was designed to<br />

handle a flow of up to 1,600 tonnes per<br />

hour of methanol.<br />

The offshore pipel<strong>in</strong>e <strong>in</strong>stallation was by<br />

the S-lay method us<strong>in</strong>g the Leighton<br />

Faulkner pipe-lay barge, a Leighton<br />

Group asset. Other mar<strong>in</strong>e equipment<br />

mobilised for the project covered a<br />

2400Hp anchor-handl<strong>in</strong>g tug, a 2000Hp<br />

“This project marked Leighton’s return to Brunei<br />

after 22 years follow<strong>in</strong>g the completion of the<br />

Brunei airport term<strong>in</strong>al build<strong>in</strong>g extension <strong>in</strong><br />

November 1986. It opens up other areas of<br />

bus<strong>in</strong>ess where Leighton can support the<br />

Brunei Economic Development Board.”<br />

tug, two 180-foot supply barges and a<br />

crew boat.<br />

“This project marked Leighton’s return<br />

to Brunei after 22 years follow<strong>in</strong>g the<br />

completion of the Brunei airport term<strong>in</strong>al<br />

build<strong>in</strong>g extension <strong>in</strong> November 1986. It<br />

opens up other areas of bus<strong>in</strong>ess where<br />

Leighton can support the Brunei<br />

Economic Development Board,” said<br />

Tony Harvey, Leighton Contractors<br />

Malaysia General Manager.


20<br />

NEW PROJECTS<br />

PORT<br />

CAPABILITIES<br />

IN HIGH<br />

DEMAND<br />

LEIGHT<strong>ON</strong> <strong>INDIA</strong> W<strong>ON</strong> TWO PORT PROJECTS,<br />

VIZAG AND PARADIP PORTS, IN RECENT M<strong>ON</strong>THS,<br />

ACKNOWLEDGING ITS EXTENSIVE EXPERTISE IN<br />

MARINE C<strong>ON</strong>STRUCTI<strong>ON</strong><br />

PARADIP PORT<br />

In mid July, Paradip <strong>Port</strong> Trust awarded<br />

the consortium of Sterlite Industries and<br />

Leighton Contractors India the contract<br />

to develop a multi-purpose berth to<br />

handle clean cargo. Leighton India will<br />

undertake the EPC civil works contract<br />

to construct the wharf and associated<br />

facilities, valued at approximately<br />

US$40m.<br />

The project <strong>in</strong>volves the construction<br />

of a 405 metre by 32 metre berth with<br />

expected capacity of five million tonnes<br />

per annum. All berth construction,<br />

soil improvement and the civil works<br />

associated with the 9.2 kilometre new<br />

rail l<strong>in</strong>k which forms part of the facilities<br />

will be undertaken by Leighton India.<br />

Construction work on the project will<br />

commence later this year and is due for<br />

completion by the end of 2012.<br />

Russell Waugh, Manag<strong>in</strong>g Director of<br />

Leighton India, said: “This second port<br />

project w<strong>in</strong> re<strong>in</strong>forces our strong market<br />

position both onshore and offshore <strong>in</strong><br />

India. Leighton’s ability to offer cost<br />

effective solutions, coupled with a<br />

strong focus on <strong>in</strong>ternational standards<br />

of excellence <strong>in</strong> safety, quality and timely<br />

delivery is the hallmark of our success.<br />

“Our India bus<strong>in</strong>ess cont<strong>in</strong>ues to<br />

rapidly grow as we build a strong<br />

client base through successful<br />

project delivery.”<br />

VIZAG PORT EXPANSI<strong>ON</strong><br />

To cater to the future grow<strong>in</strong>g traffic<br />

needs, the Visakhapatnam <strong>Port</strong> Trust<br />

has decided to undertake mechanisation<br />

of coal handl<strong>in</strong>g facilities and upgradation<br />

of the General Cargo Berth<br />

at Outer Harbour of Visakhapatnam<br />

<strong>Port</strong> to cater to 200,000 DWT vessels<br />

through public private partnership (PPP)<br />

on a Design, Build, F<strong>in</strong>ance, Operate,<br />

Transfer basis. The contract to perform<br />

this work has been awarded to Vizag<br />

General Cargo Berth Private Limited, a<br />

consortium compris<strong>in</strong>g Sterlite Industries<br />

Ltd. of Vedanta Group and Leighton<br />

Contractors (India) Pvt. Ltd.<br />

The scope of work broadly <strong>in</strong>cludes<br />

plann<strong>in</strong>g, eng<strong>in</strong>eer<strong>in</strong>g, design<strong>in</strong>g,<br />

f<strong>in</strong>anc<strong>in</strong>g, construction, development,


21<br />

operation and ma<strong>in</strong>tenance of the<br />

General Cargo Berth to cater to<br />

200,000 DWT vessels of 300m length<br />

and civil, mechanical & electrical works<br />

for <strong>in</strong>stallation of a suitably designed<br />

system for unload<strong>in</strong>g of coal at the<br />

rate of 70,000 tonnes per day via<br />

three ship unloaders. The system will<br />

then transport the material via a dual<br />

conveyor system some 2.5 kms to a<br />

mechanised stackyard for short term<br />

storage. A Bucket Wheel Reclaim<strong>in</strong>g<br />

and Wagon Load<strong>in</strong>g System will also<br />

be <strong>in</strong>corporated, which will load wagon<br />

tra<strong>in</strong>s of 58 wagons of 60 tonne<br />

capacity each at a rate of one rake<br />

per hour.<br />

Tony Friscic, Project Manager, <strong>Port</strong>s,<br />

said: “This is a tremendous opportunity<br />

for the India bus<strong>in</strong>ess to re<strong>in</strong>force the<br />

strength of the JV Alliance with Sterlite<br />

Industries to the port sector <strong>in</strong> its ability<br />

to deliver this, <strong>in</strong> a series of upcom<strong>in</strong>g<br />

projects.<br />

“We have met many times now with<br />

the Visakhapatnam <strong>Port</strong> Authority<br />

who are keen to help the project move<br />

forward and unlike many government<br />

authorities, are be<strong>in</strong>g very helpful <strong>in</strong><br />

gett<strong>in</strong>g us to a physical construction<br />

stage. From a civil construction<br />

perspective the project is very excit<strong>in</strong>g<br />

as it covers many different aspects of<br />

civil works <strong>in</strong> both the berth works and<br />

stackyard and rail l<strong>in</strong>k development.” <br />

PARADIP PORT<br />

PROJECT<br />

LOCATI<strong>ON</strong>:<br />

PARADIP, ORISSA STATE, <strong>INDIA</strong><br />

CLIENT:<br />

PARADIP PORT TRUST<br />

C<strong>ON</strong>TRACT VALUE:<br />

US$40M<br />

COMMENCEMENT:<br />

END OF 2010<br />

COMPLETI<strong>ON</strong>:<br />

END OF 2012<br />

VIZAG PORT<br />

PROJECT<br />

LOCATI<strong>ON</strong>:<br />

VISHAKHAPATNAM,<br />

ANDHRA PRADESH, <strong>INDIA</strong><br />

CLIENT:<br />

VISHAKHAPATNAM PORT TRUST<br />

C<strong>ON</strong>TRACT VALUE:<br />

US$50 M<br />

COMMENCEMENT:<br />

JUNE 2010<br />

COMPLETI<strong>ON</strong>:<br />

JUNE 2012


COMPANY<br />

22 PROFILE NEWS<br />

LEIGHT<strong>ON</strong><br />

MAJOR TUNNELLING WIN<br />

FOR LEIGHT<strong>ON</strong> <strong>INDIA</strong><br />

LOCATI<strong>ON</strong>:<br />

CHENANI, JAMMU, <strong>INDIA</strong><br />

CLIENT:<br />

ILFS TRANSPORTATI<strong>ON</strong><br />

NETWORK LIMITED<br />

C<strong>ON</strong>TRACT VALUE:<br />

USD 500 MILLI<strong>ON</strong><br />

COMMENCEMENT:<br />

JULY 2010<br />

COMPLETI<strong>ON</strong>:<br />

2015<br />

HAS BEEN AWARDED THE C<strong>ON</strong>TRACT TO<br />

BUILD <strong>ON</strong>E OF THE L<strong>ON</strong>GEST ROAD TUNNELS IN<br />

ASIA. THE CHENANI-NASHRI PROJECT INVOLVES THE<br />

C<strong>ON</strong>STRUCTI<strong>ON</strong> OF A MAJOR ROAD TUNNEL IN JAMMU,<br />

NORTHERN <strong>INDIA</strong><br />

Leighton India is the eng<strong>in</strong>eer<strong>in</strong>g,<br />

procurement and construction<br />

contractor to ILFS Transportation<br />

Networks Ltd, who have signed a<br />

concession with the National <strong>High</strong>way<br />

Authority of India to build and operate<br />

the project.<br />

The two lane, 14 metre diameter<br />

tunnel is approximately n<strong>in</strong>e kilometres<br />

long, and will be one of the longest road<br />

tunnels <strong>in</strong> Asia. The tunnel bypasses an<br />

exist<strong>in</strong>g w<strong>in</strong>d<strong>in</strong>g section of the NH1A<br />

highway, and provides an all-weather<br />

route that will provide a significant time<br />

sav<strong>in</strong>gs to motorists.<br />

The construction work is valued<br />

at US$500 million, and will take<br />

approximately 54 months to complete,<br />

with work due to commence<br />

immediately.<br />

“This is a fantastic project for Leighton<br />

India,” said Russell Waugh, Manag<strong>in</strong>g<br />

Director of Leighton India. “The award<br />

of this project recognises Leighton’s<br />

position as a pre-em<strong>in</strong>ent contractor<br />

<strong>in</strong> India, and our ability to deliver<br />

technically challeng<strong>in</strong>g eng<strong>in</strong>eer<strong>in</strong>g<br />

and <strong>in</strong>frastructure projects.” <br />

“The award of this project recognises Leighton’s<br />

position as a pre-em<strong>in</strong>ent contractor <strong>in</strong><br />

India, and our ability to deliver technically<br />

challeng<strong>in</strong>g eng<strong>in</strong>eer<strong>in</strong>g and <strong>in</strong>frastructure<br />

projects”


NEW PROJECTS<br />

23<br />

LEIGHT<strong>ON</strong> WINS<br />

WATER PIPELINE PROJECT<br />

IN MALAYSIA<br />

LEIGHT<strong>ON</strong> C<strong>ON</strong>TRACTORS MALAYSIA HAS BEEN AWARDED A MYR 92 MILLI<strong>ON</strong> WATER<br />

PIPELINE PROJECT IN LABUAN, EAST MALAYSIA<br />

LOCATI<strong>ON</strong>:<br />

KAMPUNG LAWA, BEAUFORT,<br />

SABAH AND LABUAN<br />

CLIENT:<br />

MINISTRY OF ENERGY, GREEN<br />

TECHNOLOGY AND WATER<br />

GOVERNMENT OF MALAYSIA<br />

C<strong>ON</strong>TRACT VALUE:<br />

MYR 91.91 MILLI<strong>ON</strong><br />

COMMENCEMENT:<br />

MAY 2010<br />

COMPLETI<strong>ON</strong>:<br />

OCTOBER 2010<br />

The project, awarded to a Leighton-<br />

Kencana jo<strong>in</strong>t venture by the M<strong>in</strong>istry of<br />

Energy, Green Technology and Water,<br />

Government of Malaysia, consists of a<br />

new pipel<strong>in</strong>e that will connect a water<br />

treatment plant at Beaufort, Sabah,<br />

to the storage reservoir complex.<br />

Approximately 23 kilometres will be<br />

submar<strong>in</strong>e pipel<strong>in</strong>e to be <strong>in</strong>stalled by<br />

the jo<strong>in</strong>t venture.<br />

Leighton’s own state of the art,<br />

purpose-built pipe-lay barge, Leighton<br />

Stealth, will be used to <strong>in</strong>stall this 26”<br />

diameter pipel<strong>in</strong>e by the S-Lay method.<br />

Leighton Contractors Malaysia<br />

General Manager, Tony Harvey said the<br />

award of the water <strong>in</strong>frastructure project<br />

reflected Leighton’s commitment to<br />

Malaysia and its niche area of expertise<br />

<strong>in</strong> submar<strong>in</strong>e pipel<strong>in</strong>e <strong>in</strong>stallation.<br />

“We are very pleased to be awarded<br />

this project, which builds on our 15<br />

years experience deliver<strong>in</strong>g quality<br />

<strong>in</strong>frastructure <strong>in</strong> Malaysia,” he said.<br />

“This project utilises the specialised<br />

fleet of mar<strong>in</strong>e assets and the significant<br />

experience that Leighton has <strong>in</strong> the<br />

offshore sector is complemented with<br />

the eng<strong>in</strong>eer<strong>in</strong>g expertise to address<br />

the technical challenges work<strong>in</strong>g <strong>in</strong><br />

this environment.”<br />

<strong>ON</strong> TRACK TO DELIVER<br />

Work commenced <strong>in</strong> May and the<br />

Leighton Malaysia project team was<br />

mobilised over a period of two weeks.<br />

The Leighton Stealth pipelay was<br />

mobilised to site <strong>in</strong> early July, which<br />

meant the team had only six weeks to<br />

complete all eng<strong>in</strong>eer<strong>in</strong>g, procurement,<br />

and site preparation works, most of<br />

which is now complete.<br />

The Domestic Shipp<strong>in</strong>g License has<br />

been a real challenge as the Leighton<br />

Stealth had never worked <strong>in</strong> Malaysian<br />

waters previously. This was overcome<br />

with some excellent support from the<br />

M<strong>in</strong>istry of Energy, Green Technology<br />

and Water.<br />

The ma<strong>in</strong> technical challenge is to lay<br />

a th<strong>in</strong> wall pipe with heavy concrete<br />

weight coat<strong>in</strong>g which makes the<br />

pipelay<strong>in</strong>g activity very complicated and<br />

susceptible to buckl<strong>in</strong>g. Hence the<br />

project team had to review the method<br />

of lay<strong>in</strong>g <strong>in</strong> terms of high tensions and<br />

have had to <strong>in</strong>troduce buoyancy<br />

throughout the 23km length of<br />

the pipel<strong>in</strong>e.<br />

Edgar Ramani, Project Manager,<br />

said: “This project is undoubtedly very<br />

challeng<strong>in</strong>g and complex <strong>in</strong> technical<br />

as well as budget and schedule terms,<br />

however we have a dedicated, focused<br />

team who are all determ<strong>in</strong>ed to deliver<br />

the project.<br />

“The team has worked extremely hard<br />

to get where we are <strong>in</strong> terms of plann<strong>in</strong>g<br />

and preparation, and we now need to<br />

focus on ensur<strong>in</strong>g the job is completed<br />

on-time and as safely as possible. We<br />

have a strong team of very experienced<br />

people and I have no doubt the team<br />

will deliver.”


24<br />

COMPANY NEWS<br />

LEIGHT<strong>ON</strong>’S<br />

FUTURE LEADERS<br />

RECENT GRADUATES OF THE MANAGEMENT DEVELOPMENT PROGRAMME SHARE<br />

THEIR EXPERIENCE LEARNING THE ROPES <strong>ON</strong> BEING A LEIGHT<strong>ON</strong> LEADER<br />

Recent graduates of Leighton’s<br />

Management Development Programme<br />

(MDP) attended their graduation<br />

ceremony at the Kuala Lumpur offices<br />

<strong>in</strong> May.<br />

The event was organised with Senior<br />

Management present to share their<br />

experience and career progression to<br />

the top of a successful company, and<br />

the challenges faced. Led by David<br />

Savage, Leighton Hold<strong>in</strong>gs Chief<br />

Operat<strong>in</strong>g Office, the management team<br />

praised the participants for their hard<br />

work and dedication achiev<strong>in</strong>g their<br />

goals set out by the MDP.<br />

Established <strong>in</strong> 2005, MDP provides<br />

participants a solid understand<strong>in</strong>g of all<br />

aspects of the bus<strong>in</strong>ess and necessary<br />

management skills to fast track their<br />

development and career progression<br />

<strong>in</strong> the company.<br />

The graduates for 2010 were Arran<br />

Cleland, Fergus Eley, Tom Gibson ,<br />

Kithsiri Jayanath, James Polk<strong>in</strong>ghorne,<br />

Chetan Shah, and Michael Yong. Here<br />

are some of their stories be<strong>in</strong>g on the<br />

MDP journey:<br />

Arran Cleland<br />

TRIL Commercial Manager,<br />

Leighton India<br />

“The MDP gives the participants an<br />

understand<strong>in</strong>g of how the other<br />

discipl<strong>in</strong>es and departments function,<br />

which gives them a more rounded base<br />

of knowledge. It also gives them the<br />

opportunity to seek advice and op<strong>in</strong>ions<br />

from more senior managers, us<strong>in</strong>g the<br />

MDP curriculum as an icebreaker.<br />

“The MDP competencies can be used<br />

as your guidel<strong>in</strong>es for learn<strong>in</strong>g but the<br />

participant must be self-motivated and<br />

want to develop themselves further.<br />

“Although I have graduated from<br />

the MDP I am aware that the learn<strong>in</strong>g<br />

does not stop now. I am committed<br />

to my own cont<strong>in</strong>ued professional<br />

development and ensur<strong>in</strong>g that we are<br />

tra<strong>in</strong><strong>in</strong>g other <strong>in</strong>dividuals work<strong>in</strong>g<br />

for Leighton.”<br />

Tom Gibson<br />

Leighton New Markets Project<br />

Development Manager<br />

“The programme provides an excellent<br />

opportunity to perform different roles<br />

with excit<strong>in</strong>g challenges <strong>in</strong> new cultures<br />

and locations. By way of the rotational<br />

structure of the programme, you ga<strong>in</strong> an<br />

exposure to the core operations of the<br />

company while cont<strong>in</strong>ually enhanc<strong>in</strong>g<br />

your general management and leadership<br />

skills through active <strong>in</strong>teraction with<br />

senior management and company<br />

executives. On complet<strong>in</strong>g the MDP<br />

you can look forward to an accelerated<br />

career with<strong>in</strong> Leighton.”<br />

James Polk<strong>in</strong>ghorne<br />

Leighton Offshore Senior Eng<strong>in</strong>eer -<br />

Bus<strong>in</strong>ess Development<br />

“It is a well adm<strong>in</strong>istered programme<br />

<strong>in</strong>volv<strong>in</strong>g a diverse, challeng<strong>in</strong>g<br />

curriculum and the company places high<br />

expectations on participant’s<br />

performance to ensure it is a valuable<br />

experience.<br />

“I was very fortunate that the MDP<br />

provided me with the opportunity to<br />

work across a range of discipl<strong>in</strong>es and<br />

locations, which allowed me to see<br />

some amaz<strong>in</strong>g places and most<br />

pleas<strong>in</strong>gly, meet a lot of fantastic<br />

people.”<br />

Chetan Shah<br />

Leighton India Commercial Manager<br />

“It has been a great learn<strong>in</strong>g experience<br />

from a professional as well as a personal<br />

perspective. When I was presented<br />

with the opportunity to be enrolled, my<br />

ma<strong>in</strong> objective was to ga<strong>in</strong> exposure to<br />

the maximum number of departments<br />

<strong>in</strong> the shortest possible time to get an<br />

understand<strong>in</strong>g of the bus<strong>in</strong>ess as<br />

a whole.<br />

“One of the most important th<strong>in</strong>gs<br />

I shall take away is the experience<br />

ga<strong>in</strong>ed on people management. The<br />

commercial role on the PRP2 offshore<br />

pipe lay project <strong>in</strong> particular required me<br />

to work with all the departments from<br />

operations, quality, HSE and f<strong>in</strong>ance.<br />

“I strongly recommend this programme<br />

for young eng<strong>in</strong>eers who want to<br />

develop an overall understand<strong>in</strong>g<br />

of the construction bus<strong>in</strong>ess. The<br />

programme is challeng<strong>in</strong>g as it requires<br />

the participant to put on various th<strong>in</strong>k<strong>in</strong>g<br />

caps as they move along through<br />

different departments and this helps<br />

you to take on bigger challenges earlier<br />

<strong>in</strong> your career. Good luck to all future<br />

participants.”


INDUSTRY NEWS<br />

25<br />

COMMITTED TO THE<br />

GREEN AGENDA<br />

STAFF ACROSS LEIGHT<strong>ON</strong> OFFICES GOT THINKING ABOUT THE ENVIR<strong>ON</strong>MENT WHEN<br />

THEY JOINED A GLOBAL MOVEMENT AND MARKED WORLD ENVIR<strong>ON</strong>MENT DAY 2010<br />

Leighton is regarded throughout the<br />

construction <strong>in</strong>dustry as a leader <strong>in</strong><br />

environmental management. We are<br />

aware of the impact our work can have<br />

on the environment, and as such<br />

environmental management forms<br />

an important element of our project<br />

management and report<strong>in</strong>g systems.<br />

On June 5th, Leighton supported the<br />

green agenda <strong>in</strong> a slightly different way<br />

when staff from across the different<br />

bus<strong>in</strong>ess units got <strong>in</strong>to the spirit and<br />

celebrated World Environment Day<br />

(WED).<br />

WED is one of the pr<strong>in</strong>cipal vehicles<br />

through which the UN stimulates<br />

worldwide awareness of the<br />

environment and encourages political<br />

attention and action. The aim of the<br />

Leighton <strong>in</strong>itiative was to boost WED<br />

global message of awareness and<br />

positive action for the environment.<br />

<strong>INDIA</strong><br />

India led the way with a week-long list<br />

of activities. At the corporate offices,<br />

they distributed daily emails and held<br />

presentations on green issues.<br />

<strong>High</strong>lights were a colourful pa<strong>in</strong>t<strong>in</strong>g<br />

competition, tree plant<strong>in</strong>g, best ideas of<br />

recycle and reuse of wastage materials,<br />

and a self-realisation programme where<br />

staff came up with some <strong>in</strong>terest<strong>in</strong>g<br />

short stories relat<strong>in</strong>g to the environment.<br />

The project sites such as TRIL and<br />

PRP2 also marked the day. TRIL <strong>in</strong><br />

Chennai planted trees, took an<br />

environmental oath and organised<br />

slogan and pa<strong>in</strong>t<strong>in</strong>g competitions. PRP2<br />

on the other hand also took an oath with<br />

the aim to reduce their carbon footpr<strong>in</strong>t<br />

by plant<strong>in</strong>g more trees.<br />

MALAYSIA<br />

In Malaysia, supplementary paper<br />

recycle b<strong>in</strong>s were <strong>in</strong>troduced around the<br />

offices and pr<strong>in</strong>t<strong>in</strong>g tips were sent out to<br />

all staff.<br />

A day before WED at the weekly<br />

happy hour, a low ecological and carbon<br />

footpr<strong>in</strong>t vegetarian spread was served.<br />

Staff got <strong>in</strong>to their earth theme casuals<br />

for a dress down Friday with the best<br />

dressed employee receiv<strong>in</strong>g a prize.<br />

A group also participated <strong>in</strong> a green<br />

treasure hunt organised by a local<br />

environmental NGO, MENGO.<br />

Tony Wright, Leighton International<br />

Chief F<strong>in</strong>ancial Officer, who handed<br />

out the prizes at the Malaysian office,<br />

commented on the programme: “Events<br />

like these are a great platform for<br />

Leighton to demonstrate itself as a<br />

responsible corporate citizen. It’s also<br />

a fun way for staff to get together while<br />

address<strong>in</strong>g a press<strong>in</strong>g issue, the<br />

importance for every <strong>in</strong>dividual to<br />

preserve our fragile environment. I<br />

hope to see more <strong>in</strong>itiatives like these<br />

<strong>in</strong> the pipel<strong>in</strong>e to re<strong>in</strong>force Leighton’s<br />

commitment to improv<strong>in</strong>g our<br />

environmental impact.” <br />

“Events like these are a great platform for<br />

Leighton to demonstrate itself as a responsible<br />

corporate citizen. It’s also a fun way for staff to<br />

get together while address<strong>in</strong>g a press<strong>in</strong>g issue,<br />

the importance for every <strong>in</strong>dividual to preserve<br />

our fragile environment”


26<br />

COMPANY NEWS<br />

QUARTERLY RESULTS<br />

LEIGHT<strong>ON</strong> HOLDINGS<br />

REPORTS A PROFIT<br />

AFTER TAX OF $400<br />

MILLI<strong>ON</strong> AND STR<strong>ON</strong>G<br />

PERFORMANCE IN MINING<br />

AND INFRASTRUCTURE<br />

IN ASIA<br />

On the 17th May 2010,<br />

Leighton Hold<strong>in</strong>gs<br />

Limited announced<br />

a profit after tax<br />

(unaudited) of $400m<br />

for the n<strong>in</strong>e months to<br />

31 March 2009 (versus<br />

$220m last year) from revenue of $13.3<br />

billion (versus $13.7bn last year). On an<br />

equivalent exchange rate basis to March<br />

2009, the revenue would have been<br />

$790m higher and also profit after tax<br />

would have been $27m higher.<br />

Leighton Hold<strong>in</strong>gs’ Chief Executive,<br />

Wal K<strong>in</strong>g, reported that the result<br />

demonstrated the diversity of the<br />

Group’s contract<strong>in</strong>g and project<br />

development portfolio across its core<br />

markets of <strong>in</strong>frastructure, resources<br />

and property <strong>in</strong> Australia, Asia and<br />

the Middle East.<br />

“These are strong results for the n<strong>in</strong>e<br />

months which reflect solid performances<br />

<strong>in</strong> m<strong>in</strong><strong>in</strong>g and <strong>in</strong>frastructure, offsett<strong>in</strong>g<br />

the difficulties <strong>in</strong> property and the<br />

Middle East – particularly Dubai. Our<br />

diversification strategy has helped<br />

susta<strong>in</strong> the bus<strong>in</strong>ess through the worst<br />

of the global f<strong>in</strong>ancial crisis (GFC) and,<br />

after the residual GFC issues impact<strong>in</strong>g<br />

property and the Middle East subside,<br />

we see the growth <strong>in</strong> our core markets<br />

cont<strong>in</strong>u<strong>in</strong>g to strengthen,” said Mr K<strong>in</strong>g.<br />

“Work <strong>in</strong> hand at 31 March 2010<br />

stood at $37.5bn which was negatively<br />

impacted by $3.6bn from exchange<br />

rate effects, up from $36.5bn at the<br />

same time last year. New contracts<br />

and variations awarded dur<strong>in</strong>g the<br />

March quarter totalled $2.5bn. S<strong>in</strong>ce<br />

March 2010, an additional $1.8bn of<br />

work has been won and the Group is<br />

<strong>in</strong> a preferred position on over $6bn of<br />

projects which should be awarded <strong>in</strong><br />

the next few months,” he said.<br />

“A susta<strong>in</strong>ed level of <strong>in</strong>frastructure<br />

spend<strong>in</strong>g over the next decade,<br />

particularly on transport, water, power<br />

and telecommunications projects,<br />

should cont<strong>in</strong>ue to provide a good level<br />

of construction opportunities for the<br />

Group’s Australian based operat<strong>in</strong>g<br />

companies.<br />

“Susta<strong>in</strong>ed demand from Ch<strong>in</strong>a and<br />

the rest of Asia for iron ore and coal<br />

should drive <strong>in</strong>creases <strong>in</strong> export volumes<br />

which augurs well for contract m<strong>in</strong><strong>in</strong>g<br />

opportunities.


PROJECT UPDATE<br />

27<br />

“<strong>Demand</strong> for energy is also forecast to<br />

rema<strong>in</strong> strong present<strong>in</strong>g the Group with<br />

significant opportunities over the next<br />

few years to undertake construction<br />

work on a number of Liquefied Natural<br />

Gas and Coal Seam Methane projects,”<br />

he said.<br />

“Asia is expected to cont<strong>in</strong>ue to grow<br />

provid<strong>in</strong>g construction and m<strong>in</strong><strong>in</strong>g<br />

opportunities <strong>in</strong> our core markets of<br />

Hong Kong, Indonesia, India and<br />

Mongolia. While Dubai is likely to rema<strong>in</strong><br />

subdued for some time, the other<br />

markets of the Middle East, underp<strong>in</strong>ned<br />

by their oil and gas reserves, should<br />

cont<strong>in</strong>ue to support a good level of<br />

construction work.<br />

“For the 2009/10 f<strong>in</strong>ancial year the<br />

Group expects to report full year<br />

revenue of around $18.5bn and net<br />

profit after tax <strong>in</strong> excess of $600m. The<br />

f<strong>in</strong>al results for 2009/10 and dividend<br />

payments are, of course, subject to<br />

market conditions,” said Mr K<strong>in</strong>g. <br />

“These are strong results for the n<strong>in</strong>e months<br />

which reflect solid performances <strong>in</strong> m<strong>in</strong><strong>in</strong>g<br />

and <strong>in</strong>frastructure”


28<br />

LEIGHT<strong>ON</strong> INTERNATI<strong>ON</strong>AL<br />

HEAD OFFICE<br />

13/F Menara Multi-Purpose<br />

8 Jalan Munshi Abdullah<br />

50100 Kuala Lumpur<br />

Malaysia<br />

t: +60 3 2035 1688<br />

f: +60 3 2693 4388<br />

SRI LANKA<br />

Leighton Contractors Lanka (Pvt) Ltd<br />

3/F No 34, Hunupitiya Road<br />

Colombo 02<br />

Sri Lanka<br />

t: +94 11 471 4772<br />

f: +94 11 471 4770<br />

MALAYSIA<br />

Leighton Contractors<br />

(Malaysia) Sdn Bhd<br />

14/F Menara Multi-Purpose<br />

8 Jalan Munshi Abdullah<br />

50100 Kuala Lumpur<br />

Malaysia<br />

t: +60 3 2035 1788<br />

f: +60 3 2693 5388<br />

<strong>INDIA</strong><br />

Leighton Contractors (India) Pvt Ltd<br />

302 - 303, 3/F W<strong>in</strong>dsor Build<strong>in</strong>g<br />

CST Road, Vidyanagari Marg<br />

Kal<strong>in</strong>a, Santacruz (East)<br />

Mumbai 400 098<br />

India<br />

t: +91 22 6719 0000<br />

f: +91 22 6719 0199<br />

SINGAPORE<br />

Leighton Eng<strong>in</strong>eer<strong>in</strong>g & Construction<br />

(S<strong>in</strong>gapore) Pte Ltd<br />

137 Telok Ayer Street<br />

#05-04 Hokkien Huay Kuan Build<strong>in</strong>g<br />

S<strong>in</strong>gapore 068602<br />

t: +65 6327 1978<br />

f: +65 6327 1969<br />

OFFSHORE<br />

Leighton Offshore<br />

137 Telok Ayer Street<br />

#05-04 Hokkien Huay Kuan Build<strong>in</strong>g<br />

S<strong>in</strong>gapore 068602<br />

t: +603 2035 1688<br />

f: +603 2691 9264<br />

4/F Radisson Commercial Plaza<br />

National <strong>High</strong>way #8, Mahipalpur<br />

New Delhi 110 037<br />

India<br />

NEW MARKETS<br />

13/F Menara Multi-Purpose<br />

8 Jalan Munshi Abdullah<br />

50100 Kuala Lumpur<br />

Malaysia<br />

t: +60 3 2035 1688<br />

f: +60 3 2693 4388<br />

MIDDLE EAST<br />

Leighton Offshore Middle East<br />

Office No. GO1, G/F EIB Build<strong>in</strong>g<br />

No. 05, Alfa Build<strong>in</strong>g<br />

P.O. Box 502656<br />

DMC #14, Dubai<br />

United Arab Emirates<br />

t: +971 4 423 0300<br />

f: +971 4 427 8145

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