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Leighton International's Magazine, Perspective, Issue 6 2010

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PERSPECTIVE<br />

01<br />

LEIGHTON INTERNATIONAL’S MAGAZINE<br />

ISSUE 06 OCTOBER-DECEMBER <strong>2010</strong><br />

Focus on<br />

Singapore<br />

BIG OPPORTUNITIES IN A<br />

COMPETITIVE MARKET<br />

33 Years in<br />

Malaysia<br />

BUILDING ON A STRONG<br />

TRACK RECORD<br />

New Projects in<br />

New Regions<br />

TWO OFFSHORE PROJECT WINS


02<br />

LEIGHTON INTERNATIONAL IS ONE OF THE LEADING CONTRACTORS<br />

AND PROJECT DEVELOPERS IN ASIA AND INTERNATIONALLY IN THE<br />

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

INNOVATIVE, PRACTICAL SOLUTIONS FOR OUR CLIENTS<br />

01<br />

PERSPECTIVE<br />

LEIGHTON INTERNATIONAL’S MAGAZINE<br />

ISSUE 06<br />

OCTOBER-DECEMBER <strong>2010</strong><br />

Focus on<br />

Singapore<br />

BIG OPPORTUNITIES IN A<br />

COMPETITIVE MARKET<br />

33 Years in<br />

Malaysia<br />

BUILDING ON A STRONG<br />

TRACK RECORD<br />

New Projects in<br />

New Regions<br />

TWO OFFSHORE PROJECT WINS<br />

Boat Quay<br />

Singapore<br />

Since 1975 our unique combination<br />

of local knowledge and extensive<br />

international experience has made us<br />

the international contractor of choice<br />

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

We operate in Malaysia, India,<br />

Singapore, Sri Lanka and Brunei, and<br />

are expanding further across Africa and<br />

Central Asia. We employ people across<br />

four operating divisions: India, Malaysia,<br />

Offshore and New Markets (including<br />

Africa and Central Asia).<br />

We focus on five market segments:<br />

<br />

<br />

<br />

<br />

<br />

<strong>Leighton</strong> International is a subsidiary<br />

of Australia’s largest project development<br />

and contracting group, the <strong>Leighton</strong><br />

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

upon the experience and technical<br />

and financial expertise of the Group.<br />

<strong>Perspective</strong> is a quarterly publication<br />

produced by <strong>Leighton</strong> International. It<br />

provides information on developments,<br />

projects and issues relating to <strong>Leighton</strong><br />

International, <strong>Leighton</strong> Holdings and<br />

associate companies.<br />

If you would like to receive this<br />

publication regularly, please email us<br />

at info@leightonint.com <br />

Published by:<br />

<strong>Leighton</strong> 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 />

info@leightonint.com<br />

www.leightonint.com<br />

All values are in US dollars unless otherwise indicated.


03<br />

CONTENTS<br />

08<br />

20<br />

16<br />

Introduction 04<br />

In Brief 05<br />

Overview<br />

Maintaining a Strong 06<br />

Market Presence<br />

Industry News<br />

Malaysia at a Crossroads 07<br />

<strong>Leighton</strong> Returns to Singapore 08<br />

Profiles<br />

Working in Singapore 10<br />

New Starter 11<br />

Snapshot 12<br />

Profiles<br />

Local Knowledge, 14<br />

International Experience<br />

The <strong>Leighton</strong> Way 15<br />

Project Updates<br />

Northern Double Track 16<br />

Labuan Water Pipeline 17<br />

New Projects<br />

Tanzania SPM Project 18<br />

Iraq Crude Oil Export 19<br />

Expansion Project<br />

Company News<br />

<strong>Leighton</strong> HSEC Award <strong>2010</strong> 20<br />

Quarterly Results 22


04<br />

INTRODUCTION<br />

INTRODUCTION<br />

LEIGHTON INTERNATIONAL REFOCUSSED ON SINGAPORE<br />

THIS YEAR, A MARKET THE GROUP IS COMMITTED TO<br />

GROWING. WE WILL BE INTRODUCING OUR SINGAPORE<br />

OPERATIONS IN THIS ISSUE ALONG WITH AN OVERVIEW<br />

ON LEIGHTON MALAYSIA AND THEIR WORK IN PROGRESS.<br />

The strategic<br />

decision for<br />

<strong>Leighton</strong><br />

International to<br />

expand our<br />

operations back to<br />

a familiar market,<br />

Singapore, was made early this year as<br />

the country steadily bounces back from<br />

the global financial crisis following the<br />

Singaporean Government’s robust<br />

economic plans. The forecast for the<br />

local construction sector is an annual<br />

turnover of approximately US$20 billion<br />

per annum.<br />

Led by Brian Ticcioni, Area Manager<br />

of our Singapore office, the <strong>Leighton</strong><br />

team is expanding and is already<br />

capitalizing on the economic growth of<br />

the island state with a number of project<br />

opportunities being pursued (more on<br />

page 8).<br />

Elsewhere in South East Asia, the<br />

<strong>Leighton</strong> Malaysia team is maintaining<br />

our strong market presence with three<br />

significant projects well underway, the<br />

Northern Electrified Double Track project<br />

between Ipoh and Padang Besar, a site<br />

remediation project and the technically<br />

challenging Labuan Water Pipeline<br />

project that was recently completed<br />

ahead of schedule (see project updates<br />

on page 16). There are also a range of<br />

construction, mining and marine projects<br />

being pursued.<br />

Our guest contributor for this South<br />

East Asian issue of <strong>Perspective</strong> is<br />

Michael Halpin, Chairman of the<br />

Malaysia Australia Business Council. He<br />

provides an overview on the Malaysian<br />

market conditions and Government<br />

initiatives, outlining the knock on effect<br />

of these programmes on the local<br />

construction industry, and possible<br />

opportunities for <strong>Leighton</strong> (see page 7).<br />

In the last quarter, <strong>Leighton</strong> Offshore<br />

has successfully secured two SPM<br />

installation projects in new regions<br />

expanding <strong>Leighton</strong> International’s global<br />

footprint. <strong>Leighton</strong> Offshore was<br />

awarded a US$733 million EPC contract<br />

by Iraq’s South Oil Company to install<br />

three single point moorings (SPMs) and<br />

120 kilometres of 48-inch pipelines. This<br />

is an important project in Iraq’s strategic<br />

energy development program.<br />

The Gulf win comes closely behind the<br />

recent US$66 million contract awarded<br />

by the Tanzania Ports Authority to install<br />

a SPM and pipelines in Dar Es Salaam.<br />

Both contracts build on <strong>Leighton</strong><br />

Offshore’s SPM installations market<br />

leader position.<br />

The remainder of <strong>2010</strong> will continue to<br />

be busy with ten projects underway and<br />

several major tenders in the pipeline. <br />

DAVID SAVAGE<br />

CHIEF OPERATING OFFICER,<br />

LEIGHTON HOLDINGS<br />

City Skyline Singapore<br />

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

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

to info@leightonint.com.


IN BRIEF<br />

05<br />

INDUSTRY<br />

RECOGNITION<br />

<strong>Leighton</strong> has been accepted<br />

as a member of the International<br />

Marine Contractors Association<br />

(IMCA). IMCA is a respected<br />

Association promoting<br />

operational efficiency, quality,<br />

health, safety, environmental<br />

and technical standards. In<br />

September, <strong>Leighton</strong> Offshore<br />

received approval from the<br />

National Offshore Petroleum<br />

Safety Authority for the Stealth<br />

Safety Case. This is a landmark<br />

achievement as the safety case<br />

was one of the first to be done<br />

in-house by an organisation<br />

and effectively demonstrates<br />

<strong>Leighton</strong>’s “can do” approach<br />

to achieving high standards<br />

of performance.<br />

BOARD VISITS INDIA<br />

TUNNEL PROJECT<br />

The <strong>Leighton</strong> International<br />

Board held their quarterly<br />

board meeting at the<br />

Mumbai offices in August<br />

and visited the Chenani road<br />

tunnel project in Jammu.<br />

The Board was briefed on<br />

the scope and challenges of<br />

this major tunnelling project<br />

for the India business.<br />

LEIGHTON MYNX<br />

UPGRADED<br />

<strong>Leighton</strong>’s construction vessel Mynx was<br />

relaunched in September following its<br />

successful upgrade. The upgrade<br />

covered the accommodation,<br />

modifications to bring the construction<br />

vessel to full compliance with the ISPS<br />

code and improvements to suit latest<br />

class requirements, operational and client<br />

needs. She is currently in North-West<br />

India undertaking works associated with<br />

the Mangala Pipeline Project for Cairn<br />

Energy India Ltd.<br />

DAVID STEWART TO<br />

SUCCEED WAL KING<br />

LEIGHTON HOLDINGS<br />

ANNOUNCED WAL KING WILL<br />

RETIRE AFTER 23 YEARS AS CHIEF<br />

EXECUTIVE OFFICER AND<br />

MANAGING DIRECTOR EFFECTIVE<br />

1 ST JANUARY 2011. DAVID<br />

STEWART (PICTURED), CURRENTLY<br />

CHIEF OPERATING OFFICER OF<br />

LEIGHTON HOLDINGS, WILL<br />

ASSUME THE ROLE OF CEO<br />

EFFECTIVE FROM THAT DATE.<br />

NEW MARKETS, NEW OPPORTUNITIES<br />

<strong>Leighton</strong> New Markets is currently experiencing an exciting period<br />

in the establishment of the new business. The team is currently<br />

preparing a bid for a major mining project in Botswana, as well as<br />

examining other infrastructure project opportunities in Africa.<br />

IN<br />

BRIEF<br />

STEALTH ARRIVES IN AUSTRALIA<br />

<strong>Leighton</strong> brings its internationally gained experience in subsea<br />

pipelay back into Australia. Its barge, <strong>Leighton</strong> Stealth, arrived in<br />

Dampier, Western Australia, in October to start work on the Devil<br />

Creek Development Project.<br />

ONGC PRP-2 SEASON THREE KICKS OFF The third phase of the Pipeline Replacement<br />

Project for Oil and Natural Gas Corporation India (ONGC) commenced in October<br />

following two successful seasons for <strong>Leighton</strong>. ONGC is Asia’s largest oil and gas<br />

exploration and production company and contributes over 78% of India’s oil and<br />

gas production.


06<br />

OVERVIEW<br />

MAINTAINING A STRONG<br />

MARKET PRESENCE<br />

HEADING LEIGHTON MALAYSIA, SINGAPORE AND BRUNEI; GENERAL MANAGER<br />

TONY HARVEY REVIEWS PAST ACHIEVEMENTS AND CURRENT TARGETS SET AGAINST<br />

A CHALLENGING SOUTH EAST ASIAN MARKET.<br />

This is our 33 rd year<br />

of business in Malaysia<br />

having commenced<br />

our involvement in<br />

1977 with the Labuan<br />

Flour Mill Project in<br />

Sabah, East Malaysia.<br />

The key to our success has been to<br />

maintain our competitive edge ahead of<br />

maturing local contracting companies<br />

and this will continue to be the challenge.<br />

In this regard, we have to retain and<br />

develop our ability to re-engineer<br />

conventional designs, introduce the<br />

latest methods of construction, and<br />

apply project delivery mechanisms that<br />

generate cost, schedule and delivery<br />

efficiencies.<br />

In terms of technical ability, there<br />

is very little that we cannot do in our<br />

market sectors. We have a team of<br />

personnel with the ability to respond to<br />

technically challenging and financially<br />

complex deals. Therein lies our strength,<br />

our people. Ultimately, we need to<br />

capitalise on our flexibility, versatility<br />

and expertise to remain relevant in a<br />

market that is becoming increasingly<br />

competitive.<br />

WORKING IN<br />

COLLABORATION<br />

Currently, we are undertaking the<br />

largest rail works project undertaken in<br />

Malaysia that involves 760 kilometers<br />

of track length from Ipoh to Padang<br />

Besar, which will enable train travel at<br />

speeds of 160 kilometers per hour from<br />

Kuala Lumpur to the Thai border. Having<br />

completed the 400 kilometers track<br />

length Phase 1 works from Rawang<br />

to Ipoh, <strong>Leighton</strong> is the premier track<br />

works contractor in Malaysia. Because<br />

of the specialised skill and fleet of<br />

equipment within our rail business, there<br />

is a great opportunity to collaborate<br />

with the other subsidiaries in the<br />

<strong>Leighton</strong> Group to pursue new business<br />

in markets outside of our current<br />

geographical areas.<br />

Such collaboration across the<br />

<strong>Leighton</strong> International business<br />

operations is already evident in our<br />

offshore business, the most recent<br />

successful delivery being the Labuan<br />

Water Supply Offshore Pipeline project<br />

in September this year. This was a<br />

technically challenging initiative delivered<br />

on time and budget due to an excellent<br />

team of people utilising the Group’s<br />

state of the art marine assets.<br />

Our project team on a contaminated<br />

facility site remediation project, which<br />

involves retrieving and safely disposing<br />

of radioactive materials from an<br />

existing storage facility, is making<br />

excellent progress. This project was<br />

secured due to our ability to work<br />

in close collaboration with our client<br />

in developing precise methods that<br />

comply with onerous requirements of<br />

the Atomic Energy Licensing Board and<br />

developing an equitable price evaluation<br />

plan with shared risks to deal with the<br />

unknown conditions inherent in a project<br />

of this nature. Our strength as always<br />

is in developing innovative solutions<br />

to complex problems and the ability to<br />

take on non traditional contract delivery<br />

methods.<br />

FUTURE GOALS<br />

Looking ahead we are pursuing<br />

two excellent opportunities in<br />

Malaysia related to multi-purpose dam<br />

construction and coal mining, both<br />

of which involve <strong>Leighton</strong> taking on a<br />

project development role. This is made<br />

possible given our excellent relationship<br />

with Emrail and their shareholding within<br />

<strong>Leighton</strong> Malaysia. Other immediate<br />

opportunities within Malaysia include<br />

expansion of the LBT jetty facility,<br />

construction of a new material handling<br />

jetty facility for VALE and expansion of<br />

an existing major highway. Longer term<br />

opportunities in Malaysia relate to the<br />

government’s drive to expand the LRT<br />

and freight cargo rail network.<br />

With the recognisable upturn in<br />

Singapore where the construction<br />

sector is expected to experience annual<br />

turnover in excess of US$20 billion per<br />

annum for the coming five years, and<br />

with available margins also expected to<br />

improve, we have re-entered this market<br />

with confidence and high expectations.<br />

Currently, we are working on several<br />

initiatives with the major initiatives<br />

being the 320Mld TUAS Desalination<br />

Plant and various tunnel construction<br />

packages for the Down Town Line 3 LRT<br />

Network. Our operation in Singapore is<br />

spotlighted in this issue of <strong>Perspective</strong><br />

(see page 8).<br />

The Malaysian operations, including<br />

Singapore and Brunei, have made<br />

significant contribution to the Group over<br />

the years and <strong>2010</strong> was another great<br />

year. We look forward to an even better<br />

year in 2011. <br />

“We have to retain and develop our ability to re-engineer conventional<br />

designs, introduce the latest methods of construction, and apply project<br />

delivery mechanisms that generate cost, schedule and delivery efficiencies.”


INDUSTRY NEWS<br />

07<br />

MALAYSIA AT A CROSSROADS<br />

MICHAEL HALPIN, MALAYSIA AUSTRALIA BUSINESS COUNCIL CHAIRMAN, PROVIDES<br />

AN UPDATE ON THE GOVERNMENT OF MALAYSIA’S STRATEGIES FOR THE LOCAL<br />

BUILDING INDUSTRY AND POTENTIAL BUSINESS OPPORTUNITIES FOR LEIGHTON.<br />

Malaysia has come<br />

through the most<br />

recent global<br />

economic crisis in far<br />

better condition than<br />

many of the worlds<br />

developed nations.<br />

Never the less, whilst putting in place<br />

measures to keep Malaysia from sinking<br />

into a recession, the government under<br />

the leadership of Prime Minister Dato’<br />

Sri Mohd Najib Tun Abdul Razak also<br />

designed various strategies to lift<br />

Malaysia out of the Middle Income<br />

Trap in which its population has<br />

found themselves.<br />

Malaysia is now at a crossroads.<br />

Its planned route leading to High<br />

Income Nation status with the other<br />

routes leading to, at best economic<br />

mediocrity. Utilising the government’s<br />

planned strategies of, One Malaysia, the<br />

Government Transformation Programme,<br />

the New Economic Model and the<br />

10th Malaysia Plan, the Prime Minister<br />

should be able to reach his chosen<br />

destination for the country with his<br />

ministers full support and with effective<br />

implementation of the government’s<br />

policies by the civil service.<br />

How does this benefit the Malaysian<br />

construction industry Under the 10th<br />

Malaysia Plan there is a need to develop<br />

World Class Infrastructure which will<br />

where appropriate be developed<br />

using the Public-Private Partnership<br />

(PPP) model. There is also a need to<br />

integrate water supply and sewerage<br />

systems and to expand the availability<br />

of electricity into outlying rural areas and<br />

the continued development of Malaysia’s<br />

oil field services sector. These should<br />

give rise to construction project large<br />

and small to achieve these targets.<br />

What is the role for construction<br />

companies such as <strong>Leighton</strong> Malaysia<br />

Whilst many of the likely projects can<br />

be undertaken by local construction<br />

companies, some of the projects<br />

are likely to be very large and with<br />

“<strong>Leighton</strong> will still have to compete with other<br />

large international contractors such as those<br />

from China. The Chinese in particular are able to<br />

quote very aggressive prices, however <strong>Leighton</strong><br />

with its proven track record of project delivery,<br />

high standards of site safety and adherence to<br />

international environmental standards is well<br />

placed to secure some of these mega projects.”<br />

the PPP model in mind, will require<br />

access to high levels of funding and<br />

an international level of technical<br />

expertise not widely available to many<br />

local contractors. Whilst construction<br />

companies such as <strong>Leighton</strong> have<br />

international expertise and can access<br />

the required funding, they will still have<br />

to compete with other large international<br />

contractors such as those from China.<br />

The Chinese in particular are able to<br />

Duta Plaza<br />

Kuala Lumpur<br />

quote very aggressive prices, however<br />

<strong>Leighton</strong> with its proven track record of<br />

project delivery, high standards of site<br />

safety and adherence to international<br />

environmental standards is well placed<br />

to secure some of these mega projects.<br />

The future is going to be interesting. It<br />

will certainly be challenging, but with the<br />

right skills and experience the rewards<br />

at the end are likely to justify the effort.


08<br />

INDUSTRY NEWS<br />

LEIGHTON<br />

RETURNS TO<br />

SINGAPORE<br />

LEIGHTON SINGAPORE AREA MANAGER,<br />

BRIAN TICCIONI, SHARES HOW LEIGHTON IS<br />

WORKING TOWARDS GETTING A SLICE OF<br />

AN ULTRA–COMPETITIVE MARKET.<br />

Singapore’s strategic<br />

location and political<br />

stability have made<br />

it an attractive oasis<br />

for many foreign<br />

corporations seeking<br />

to target the Asian<br />

market. <strong>Leighton</strong> International has<br />

recently made the strategic decision to<br />

re-enter the Singapore market on the<br />

back of an upturn in Singapore’s<br />

economic growth and recognition that<br />

the coming five to seven years will see<br />

the development of a substantial<br />

number of large, private and publically<br />

funded infrastructure projects.<br />

Singapore’s construction sector is<br />

highly developed with a reputation for<br />

being ultra – competitive with<br />

comparatively low margins but balanced<br />

by low taxation, low bureaucracy and<br />

high levels of transparency, corporate<br />

protection and local and foreign<br />

investment. Consequently all of the<br />

regional household name construction<br />

groups together with multi-nationals<br />

from Europe and North America have a<br />

strong presence and are competing with<br />

long established local companies for<br />

a slice of an industry that is expected<br />

to turn over in excess of US$20 billion<br />

in year <strong>2010</strong>.<br />

For <strong>Leighton</strong>, since first entering this<br />

market back in 1992, Singapore has<br />

offered a number of on-shore and<br />

off-shore boutique project opportunities<br />

which have proven to be highly lucrative<br />

and successful.<br />

Our previous attempt in 2003 to gain<br />

a permanent foothold in Singapore<br />

coincided with a local economic<br />

downturn, the SARS crisis and the<br />

simultaneous increase in construction<br />

activity in India and the Middle East.<br />

Consequently, in 2005 the decision<br />

was made to mothball our Singapore<br />

operation until a more rewarding<br />

business environment returned.<br />

The re-entry in June of this year is<br />

quickly proving to be rewarding with the<br />

Singapore office already contending with<br />

a number of tenders including three<br />

co-gen power plant extensions, a waste<br />

facility project in Brunei with a Singapore<br />

project developer, Tuas Desalination<br />

PPP Project, Downtown Line 3 MRT<br />

extension and Downtown Line 3 track<br />

works. The programme of future tenders<br />

already extends into third quarter 2011<br />

and whilst the local market remains<br />

highly competitive and commercially<br />

aggressive, there exists a strong belief<br />

that this time around <strong>Leighton</strong>’s<br />

presence in Singapore will be a long<br />

and successful one.


NEW PROJECTS<br />

09<br />

“The programme of future tenders already<br />

extends into third quarter 2011 and whilst<br />

the local market remains highly competitive<br />

and commercially aggressive, there exists a<br />

strong belief that this time around <strong>Leighton</strong>’s<br />

presence in Singapore will be a<br />

long and successful one.”<br />

Left to Right<br />

CCR Block Mechanical & Underground Installation;<br />

Pasir Panjang to Pulau Bukom Pipeline; Pan United Cement Silo


10 PROFILES<br />

WORKING IN SINGAPORE<br />

NAME: BRIAN TICCIONI<br />

JOB TITLE: AREA MANAGER<br />

LOCATION: SINGAPORE<br />

PROJECT: CORPORATE OFFICE<br />

<strong>Leighton</strong> in Malaysia and since then I’ve<br />

had over 12 thoroughly enjoyable years.<br />

What do you think are the<br />

key challenges for your job<br />

Currently, the focus is pointed towards<br />

gaining sufficient local knowledge and<br />

expertise to identify the edge that will<br />

enable us to successfully compete in<br />

what stands as a hard dollar based,<br />

highly competitive, mature market.<br />

Foreseeably, the challenges will change<br />

from the point we secure our first project<br />

and as we develop from a fledgling<br />

business into an established<br />

operating unit.<br />

What are you initial<br />

impressions of starting work<br />

in <strong>Leighton</strong> Singapore<br />

First and foremost, I’m extremely happy<br />

to be back working in South East Asia<br />

with <strong>Leighton</strong> International following my<br />

three years in the Gulf with the Habtoor/<br />

<strong>Leighton</strong> Group. Upon arriving what<br />

immediately hit me was the apparent<br />

health of the construction sector in<br />

Singapore. The volume and scale<br />

of projects that are currently being<br />

undertaken coupled with the<br />

Government’s future plans to further<br />

expand what is already a highly<br />

developed core infrastructure means<br />

that the present S$20 billion per annum<br />

construction spend won’t reduce in the<br />

foreseeable future. For <strong>Leighton</strong><br />

Singapore in the short to long-term<br />

that means a wealth of opportunities to<br />

pursue, albeit recognisably in a highly<br />

competitive commercial environment.<br />

I’ve also been enthused by the level<br />

of sophistication of our Joint Venture<br />

partners, the knowledge and capability<br />

of the local consultants we’ve interfaced<br />

with, the professionalism of prospective<br />

clients we’ve been introduced to and<br />

the strong capability and work ethics of<br />

the staff we have employed.<br />

How long have you been<br />

working in the industry<br />

I’ve been in the industry for over 25<br />

years and essentially I finished fifth<br />

form on a Friday and started work the<br />

following Monday. I started my career<br />

with Bovis Construction in Glasgow<br />

where I was placed on a five year<br />

traineeship where during a working<br />

week I was on site three days and<br />

studying at university two days. It was a<br />

great way of combining theory with solid<br />

practical experience but sadly, such<br />

opportunities for new blood entering the<br />

industry are few and far between these<br />

days. After graduating I left Bovis and<br />

joined Wimpey Construction where I<br />

had eight terrific years working with a<br />

young, vibrant team of construction<br />

professionals and undertaking a number<br />

of highly successful building projects<br />

during that period. In the late nineties,<br />

I decided to venture overseas, joined<br />

What is the most rewarding<br />

thing about your job<br />

I find working in this industry to be<br />

intrinsically rewarding. We work in an<br />

industry where every day is different,<br />

each project opportunity is unique and<br />

where every project brings its own<br />

multi-facetted type and degree of<br />

challenge. In my mind there is nothing<br />

more satisfying than having played a<br />

part in delivering a successful project<br />

and in so doing, returned the optimum<br />

bottom line.<br />

How do you find living and<br />

working in Singapore<br />

Having spent the previous three years<br />

in the scorching, sandy wastes of<br />

Abu Dhabi, Sunderland never mind<br />

Singapore would have been a<br />

substantial step up! Kidding aside, there<br />

does exist such an ingrained national<br />

culture and pride in delivering superior<br />

levels of service. Singapore is resultantly<br />

a highly livable city and a location that<br />

you become immediately comfortable<br />

with. A similar maxim stands for the<br />

business world where extremely high<br />

rates of proficiency and efficiency and<br />

an emphasis on delivering quality results,<br />

minimizes the frustration levels. <br />

“Singapore is resultantly a highly livable city and a<br />

location that you become immediately comfortable<br />

with. A similar maxim stands for the business world<br />

where extremely high rates of proficiency and<br />

efficiency and an emphasis on delivering quality<br />

results, minimizes the frustration levels.”


PROFILES<br />

11<br />

How long have you been<br />

working in the industry and<br />

with <strong>Leighton</strong> Singapore<br />

I have been in the local construction<br />

industry for more than 15 years and<br />

newly added to <strong>Leighton</strong> Singapore a<br />

month ago. Past experience involved<br />

oil, gas, petrochemical, waste water<br />

treatment and pharmaceutical plants,<br />

as well as residential building and<br />

warehouses.<br />

What attracts you to<br />

the work<br />

I have always been fascinated by<br />

how tall buildings, beautiful bridges,<br />

magnificent dams and intriguing<br />

chemical plants are constructed. It is<br />

really amazing. And the satisfaction of<br />

being part of a team that transforms<br />

the architect’s or engineer’s concept<br />

into reality.<br />

What does a normal<br />

working day look like<br />

for you<br />

I guess a normal day is rushing against<br />

time to get things done, perusing<br />

through contract bible and do the best<br />

to defend any monetary claim in each<br />

contract. <strong>Leighton</strong> Singapore, however,<br />

is newly set up and the priority currently<br />

is to work on tenders within the<br />

stipulated timeframe and contribute my<br />

best to assist in securing the projects.<br />

What are your day-to-day<br />

challenges you face<br />

at work<br />

The biggest challenge is to keep cool<br />

under constant unreasonable demands.<br />

But this is part and parcel of the<br />

construction industry. As mentioned<br />

earlier, due to <strong>Leighton</strong> Singapore being<br />

newly set up, the daily challenge is how<br />

do I put my best knowledge forward and<br />

assist the bid team in securing projects.<br />

Pan United Cement Silo<br />

Singapore<br />

What is the most rewarding<br />

thing about your job<br />

I take pride in the projects that I’ve been<br />

involved with because each and every<br />

project is so unique with its own set<br />

of challenges, team members and<br />

counterparts. Each experience is<br />

irreplaceable and there is always<br />

something new I can learn.<br />

NEW STARTER<br />

Where do you see the<br />

construction industry in<br />

Singapore placed for<br />

the year ahead<br />

I think the Singapore construction<br />

industry looks positive over the next<br />

few years with projects planned in<br />

the pipeline from both public and<br />

private sectors. <br />

NAME: EVELYN ANG<br />

JOB TITLE: SENIOR QUANTITY SURVEYOR<br />

LOCATION: SINGAPORE<br />

PROJECT: CORPORATE OFFICE


12 XXXXXXXXXXXXX<br />

SNAPSHOT<br />

<strong>Leighton</strong> Malaysia – Emrail’s Northern Double<br />

Track project from Ipoh to Padang Besar<br />

(more on page 16).


14 PROFILES<br />

LOCAL KNOWLEDGE,<br />

INTERNATIONAL<br />

EXPERIENCE<br />

How long have you been<br />

working in the industry and<br />

with <strong>Leighton</strong> Singapore<br />

I have been in the construction industry<br />

for 20 years, working on projects that<br />

range from Changi Airport’s Terminal 3<br />

to MRT lines to high rise buildings and<br />

educational institutions. I joined <strong>Leighton</strong><br />

Singapore in August <strong>2010</strong>.<br />

What attracts you to<br />

the work<br />

In Singapore’s construction industry we<br />

are able to meet and work with different<br />

nationalities in the work place. This gives<br />

me the opportunity to learn the values<br />

and cultures of other races. Due to the<br />

different ways my colleagues work, I<br />

learn better methods of accomplishing<br />

tasks and handling problems. In this<br />

field of expertise, there is definitely more<br />

than one way of doing my job so I take<br />

pleasure in observing others’ working<br />

skills, as well as accepting my weakness<br />

and changing the way I deal with<br />

problems relating to my work.<br />

NAME: JAMES TEO<br />

JOB TITLE: PROCUREMENT MANAGER<br />

LOCATION: SINGAPORE<br />

PROJECT: CORPORATE OFFICE<br />

Currently I have colleagues from<br />

England, Scotland, Australia and<br />

Malaysia working in the same office<br />

which exposes me greatly to the<br />

values and working styles of<br />

different nationalities.<br />

What does a normal<br />

working day look like<br />

for you<br />

My job scope is making contact and<br />

sourcing for the right supplier and<br />

sub-contractor for the tendering work.<br />

We are tendering for the upcoming MRT<br />

projects in Singapore currently.<br />

What are your day-to-day<br />

challenges you face<br />

at work<br />

The sub-contractors we engage not only<br />

have to be cost effective and competent,<br />

they must also demonstrate a strong<br />

sense of safety commitment and<br />

responsibility towards the environment.<br />

What is the most<br />

rewarding thing about<br />

your job<br />

The most immediate sense of<br />

satisfaction is when I know the<br />

project has been completed on<br />

time and within the cost budget.<br />

This proves that my team and I have<br />

planned well and managed to come<br />

up with the best of our abilities despite<br />

our differences and limitations.<br />

Also, knowing that ordinary people,<br />

including our future generation will<br />

benefit and enjoy the usage of a<br />

structure for years to come feels<br />

extremely rewarding.<br />

What do you think sets<br />

<strong>Leighton</strong> apart from other<br />

contractors in Singapore<br />

Unlike other local contractors,<br />

<strong>Leighton</strong> focuses on high values and<br />

unconventional projects which fully<br />

utilise our expertise and strengths.<br />

And that differentiate us from the rest.<br />

Where do you see the<br />

opportunities for the<br />

business in the year ahead<br />

As Singapore is experiencing strong<br />

economic growth, it is projected that<br />

there will also be a high growth in<br />

construction industry for the next few<br />

years. If we remain competent and<br />

focus in this area, I am certain that we<br />

will be able to secure some major<br />

projects in the near future. <br />

“Currently I have colleagues from England, Scotland, Australia and Malaysia<br />

working in the same office which exposes me greatly to the values and<br />

working styles of different nationalities.”


PROFILES<br />

15<br />

How long have you been<br />

working in the industry and<br />

with <strong>Leighton</strong><br />

Started work as a chain boy on the M55<br />

motorway project near Preston in the UK<br />

in 1974, so I’ve been in the industry for<br />

36 years. Studied Civil Engineering at<br />

Bath University. After university I worked<br />

in Eastbourne as a Graduate Engineer<br />

for Sir Robert McAlpine for three years<br />

on a “training under agreement” scheme,<br />

which in those days enabled you to<br />

complete your MICE and Chartered<br />

Engineer course within three years. After<br />

that I worked for COSTAIN in the UAE<br />

as a Geotechnical Engineer on a large<br />

underpass project in Abu Dhabi and on<br />

DAS Island, an offshore installation, of<br />

two kilometers long by one kilometer<br />

wide in the middle of the Arabian Gulf.<br />

Following this I worked for 18 years<br />

with Freyssinet International from<br />

France in many interesting bridge<br />

and viaduct projects in many exciting<br />

locations such as Turkey, Prince Edward<br />

Island, Canada, Hong Kong, Vietnam,<br />

Indonesia, Malaysia and Singapore.<br />

I joined <strong>Leighton</strong> in 2002, working<br />

in the Singapore office in Business<br />

Development. Since then I have worked<br />

in Kuala Lumpur, Abu Dhabi and now<br />

back in Singapore.<br />

Building Construction<br />

Singapore<br />

What do you think sets<br />

<strong>Leighton</strong> apart from other<br />

contractors in Singapore<br />

We shall bring a new style of contracting<br />

to Singapore, where everybody is part of<br />

the project team and the ‘<strong>Leighton</strong> Way’<br />

will be seen by our stakeholders and<br />

peers as the right way. We shall become<br />

a contractor who is seen to deliver on<br />

time and with a Quality and Health &<br />

Safety Standard above the other<br />

contractors.<br />

What do you see are the key<br />

strengths of the business<br />

We have a good brand and a great<br />

product, we just need to get that first<br />

project and prove it to everyone. Our<br />

Australian attitude will bring a fresh<br />

breeze to the Singapore market and we<br />

will build up a good team.<br />

Where do you see the<br />

construction industry in<br />

Singapore placed for the<br />

year ahead<br />

Singapore is booming, it is the preferred<br />

place for people to live and work in Asia<br />

because everything works. We see the<br />

Singapore Government is always<br />

continually re-inventing itself to stay<br />

ahead of the competition and stay<br />

productive, consequently, there are<br />

many new projects coming up in the<br />

new Medical Hub, Mediaopolis, Seleter<br />

Aerospace Park, Clean Tech Park,<br />

Biopolis and the I-Park - just enormous<br />

and it goes on like this for the next ten<br />

years.<br />

How do you find living and<br />

working in Singapore<br />

Hard work and great fun. <br />

What attracts you to<br />

the work<br />

Working with <strong>Leighton</strong> is always<br />

exciting and challenging. The energy<br />

and enthusiasm in <strong>Leighton</strong> is<br />

tremendous, everyone wants to be part<br />

of the team that wins the projects. We<br />

work long hours and we practice very<br />

much the doctrine of ‘work hard, play<br />

hard’. It’s a great atmosphere.<br />

What do you think are the<br />

key challenges for your job<br />

Winning our first major project in<br />

Singapore is by far my greatest<br />

challenge, which depends greatly on<br />

support from all levels in the<br />

organisation.<br />

INVESTING THE LEIGHTON IN LEIGHTON WAY<br />

NAME: SENTHIL STEPHEN KUMAR HEATH<br />

JOB TITLE: SENIOR PROJECT PROJECT DEVELOPMENT MANAGER<br />

LOCATION: MANAGER MUMBAI, INDIA<br />

PROJECT: LOCATION: PIPELINE SINGAPORE REPLACEMENT PROJECT,<br />

PROJECT: CORPORATE SEASON 2 (PRP2) OFFICE


16<br />

COMPANY NEWS<br />

ON TRACK TO DELIVER<br />

THE GOVERNMENT OF MALAYSIA HAS EMBARKED ON A RAILWAY INFRASTRUCTURE<br />

DEVELOPMENT PROJECT TO UPGRADE THE EXISTING SINGLE TRACK INTO<br />

ELECTRIFIED DOUBLE TRACK RAILWAY IN BETWEEN IPOH AND THE BORDER TOWN<br />

OF PADANG BESAR. LEIGHTON PROJECT DIRECTOR, CORMAC BRADY,<br />

GIVES US A PROGRESS UPDATE.<br />

<strong>Leighton</strong> Malaysia, in partnership with<br />

Emrail, was awarded the Government<br />

rail contract to construct 753 kilometers<br />

of track works late last year. The<br />

upgrade to a modern electrified double<br />

track network will allow for an increased<br />

line speed to 140 kilometers per hour<br />

and a rise in both passenger and freight<br />

capacities.<br />

At the peak of construction, the total<br />

workforce will be over 500 personnel<br />

PADANG BESAR<br />

ARAU<br />

ALOR SETAR<br />

SUNGAI PETANI<br />

BUTTERWORTH<br />

BUKIT MERTAJAM<br />

KAMUNTING<br />

THAILAND<br />

MALAYSIA<br />

with the majority sourced from Malaysia,<br />

India, Thailand, Philippines and<br />

Bangladesh.<br />

As with any track construction,<br />

safety of existing passenger services<br />

is a priority. All employees undergo a<br />

one and half day course on line side<br />

safety awareness training conducted<br />

by KTMB (Malaysian Railways) as well<br />

as various project site inductions. Strict<br />

compliance to operating procedures for<br />

access to the existing network has been<br />

implemented for the project.<br />

The works conducted to date have<br />

been associated with site establishment,<br />

construction of workshop and flashbutt<br />

depot yards at Taiping and Jarak, as<br />

well as site offices at Bukit Mertajam,<br />

Taiping and Sungai Petani. The flashbutt<br />

depot facilities are required to weld<br />

88,000 tonnes of UIC 54 rail, received<br />

from the client in 25 meter lengths, into<br />

150 meter long strings for subsequent<br />

transport via the existing rail network to<br />

the various work locations. Production<br />

of flashbutt welding is undertaken both<br />

within fixed depots and on track with<br />

equipment originally manufactured<br />

in Austria, Italy and USA. Production<br />

welding commenced on 6th September<br />

<strong>2010</strong> with approximately 10 kilometers<br />

of tracks welded as off 24 th September.<br />

Construction of temporary track<br />

work diversions has also commenced<br />

which facilitates access for the staged<br />

construction of earthworks. Even the<br />

quantity of temporary track construction<br />

at 70 kilometers is significant with<br />

approximately 14 kilometers completed<br />

to date.<br />

In addition to the 88,000 tonnes<br />

of rail, the client is also supplying<br />

approximately three million tonnes of<br />

ballast and 1.2 million concrete sleepers.<br />

Emrail/<strong>Leighton</strong> at its peak production<br />

is planning to construct over 40<br />

kilometers of track per month utilising<br />

an impressive fleet of track equipment<br />

comprising nine Plasser tamping<br />

machines, nine ballast regulators, four<br />

flashbutt welding machines, rail steel<br />

delivery trains capable of carrying 150<br />

meters long welded rail strings and<br />

ballast delivery trains consisting of 40<br />

ballast wagons.<br />

The anticipated completion date<br />

for the track works component of the<br />

project is the first quarter of 2013.<br />

Establishment of such array of<br />

specialist track construction equipment<br />

together with a highly skilled and mobile<br />

workforce will allow Emrail and <strong>Leighton</strong><br />

International to take full advantage of<br />

the planned rail expansion in South<br />

East Asia region. <br />

KUALA KANGSAR<br />

IPOH


PROJECT UPDATES<br />

17<br />

LABUAN PIPELINE PROJECT<br />

COMPLETED AHEAD<br />

OF SCHEDULE<br />

A FEATHER IN THE CAP FOR LEIGHTON MALAYSIA AND LEIGHTON OFFSHORE AS THE<br />

LABUAN WATER PIPELINE PROJECT IS COMPLETED A MONTH AHEAD OF SCHEDULE.<br />

The Government of Malaysia is<br />

undertaking the development of a Water<br />

Pipeline in Labuan, East Malaysia, to<br />

mitigate the acute water shortage on<br />

the island. In collaboration with <strong>Leighton</strong><br />

Offshore and in Joint Venture with<br />

Kencana HL, <strong>Leighton</strong> Malaysia<br />

delivered the following:<br />

The delivery of existing 26 inch<br />

pipeline – 22740 meters including the<br />

supply of additional 600 meters of<br />

new pipes by Kencana.<br />

Pre-installation pipelay analysis<br />

Install and pre-commission<br />

approximately 22.8km of submarine<br />

pipeline in max water depths of 22m.<br />

Post trench approximately 1.8km at<br />

three locations along the route<br />

Interface with existing mudflats<br />

contractor including undertaking a<br />

midpoint tie-in.<br />

A key challenge to the installation of the<br />

pipeline was the constraints that the<br />

physical characteristics of the free issued<br />

pipeline poses in terms of its stiffness,<br />

due to the relatively thick reinforced<br />

concrete weight coating and its relatively<br />

thin wall thickness.<br />

The challenges that this poses include<br />

the ability to install this pipeline using a<br />

pipe lay barge that has sufficient track<br />

tensioner capacity, and undertaking detail<br />

stress analysis using finite element<br />

methods to identify and reduce bending<br />

stresses during installation. <strong>Leighton</strong><br />

Stealth was used to install the pipeline<br />

using the S-Lay method.<br />

<strong>Leighton</strong> completed the project on<br />

the 10th September, over a month ahead<br />

of schedule.<br />

Project Manager, Edgar Ramani, said<br />

“It was a demanding project set against a<br />

very tight timeline with the contract being<br />

awarded on 17 th May, commencement of<br />

onshore installation works on 29 th May<br />

and offshore installation works on 7 th July.<br />

So to have completed one month ahead<br />

of schedule is something the team is very<br />

proud of.<br />

“We were given a very short period to<br />

complete engineering and planning. The<br />

installation of a thin wall, rigid pipeline<br />

susceptible to buckling together with poor<br />

weather conditions, plus working with a<br />

competitive budget; were among the<br />

challenging obstacles we faced. But the<br />

dedicated and focused project team<br />

overcame these challenges with great<br />

success.<br />

“We achieved this while maintaining a<br />

high standard of safety and quality – with<br />

no loss time injuries on the project and a<br />

high audit score from Lloyds Register for<br />

the environment audit with no nonconformances.<br />

We also gave something<br />

back to the local community through an<br />

environmental awareness campaign with<br />

a local community centre for disabled<br />

kids. We planted fruit trees at the centre<br />

and sponsored eight local athletes to take<br />

part in the next Malaysian Paralympics<br />

Games in Perak, Malaysia.”<br />

The team delivered the project on-time<br />

and well below budget, whilst efficiently<br />

delivering Stealth for the next offshore<br />

project, Devil Creek Development Project<br />

in Australia on schedule.


18<br />

COMPANY NEWS<br />

AFRICAN WIN<br />

FOR LEIGHTON OFFSHORE<br />

LEIGHTON OFFSHORE HAS BEEN AWARDED A US$66M CONTRACT BY THE TANZANIA<br />

PORTS AUTHORITY TO INSTALL A SINGLE POINT MOORING AND PIPELINES IN<br />

RAS MJIMWEMA, DAR ES SALAAM, TANZANIA.<br />

PROJECT:<br />

ENGINEERING, PROCUREMENT<br />

& CONSTRUCTION OF SINGLE<br />

POINT MOORING AND<br />

PIPELINE SYSTEM<br />

LOCATION:<br />

RAS MJIMWEMA, DAR ES SALAM,<br />

TANZANIA<br />

CLIENT:<br />

TANZANIA PORTS AUTHORITY<br />

CONTRACT VALUE:<br />

USD66 MILLION<br />

COMMENCEMENT:<br />

SEPTEMBER <strong>2010</strong><br />

COMPLETION:<br />

MARCH 2012<br />

<strong>Leighton</strong> Offshore has received the<br />

Letter of Intent from Tanzania Ports<br />

Authority for the removal of the existing<br />

Single Point Mooring (SPM) buoy and<br />

the related pipeline system at Ras<br />

Mjimwema, outside the Port of Dar Es<br />

Salaam, and replacement of the existing<br />

facility with a new dual-line multi product<br />

facility for the transfer of crude oil and<br />

white products.<br />

<strong>Leighton</strong> will undertake the residual<br />

and installation engineering, supply,<br />

installation, testing, pre-commissioning<br />

and completion of a 24 inch pipeline<br />

and a 28 inch pipeline (both 3.6<br />

kilometers offshore and 4.4 kilometers<br />

onshore) and the design, supply,<br />

installation, testing, pre-commissioning<br />

and completion of the associated dual<br />

Pipeline End Manifold (PLEM) and SPM<br />

system. <strong>Leighton</strong> will also be responsible<br />

for the removal and/or abandonment of<br />

the existing facility.<br />

<strong>Leighton</strong> Holdings Chief Operating<br />

Officer, David Savage, said the award of<br />

the project built on <strong>Leighton</strong> Offshore’s<br />

strong track record in the installation of<br />

SPM’s and confirmed their position as<br />

the leading company in the region in<br />

SPM work.<br />

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

this project in Africa, which is an exciting<br />

market for <strong>Leighton</strong> International and<br />

where we are exploring a range of<br />

opportunities onshore and offshore”<br />

he said.<br />

The project team are currently<br />

mobilising to the Kuala Lumpur office<br />

where procurement and engineering will<br />

be undertaken until the team transfer<br />

to Tanzania in June 2011. Key start-up<br />

activities for the team include securing<br />

the SPM Vendor and Line Pipe Vendor<br />

and undertaking geophysical and<br />

geotechnical investigations along the<br />

pipeline route corridor and proposed<br />

SPM location.<br />

The recently upgraded <strong>Leighton</strong> Mynx<br />

work barge will be used to pull the<br />

pipeline and install the PLEM and SPM<br />

buoy in Tanzania during the second half<br />

of 2011. <br />

“The award of the project built on <strong>Leighton</strong><br />

Offshore’s strong track record in the installation<br />

of SPM’s. We are very pleased to be awarded this<br />

project in Africa, which is an exciting market for<br />

<strong>Leighton</strong> International and where we are exploring<br />

a range of opportunities onshore and offshore.”


NEW PROJECTS<br />

19<br />

MAXIMISING<br />

OFFSHORE OPPORTUNITIES<br />

IN THE GULF<br />

LEIGHTON OFFSHORE SIGNED AN EPC CONTRACT WORTH US$733 MILLION<br />

WITH IRAQ’S SOUTH OIL COMPANY – A VITAL PROJECT IN IRAQ’S STRATEGIC ENERGY<br />

REDEVELOPMENT PROGRAM.<br />

The contract forms part of the Iraq<br />

Crude Oil Export Expansion Project<br />

(ICOEEP) which is developing offshore<br />

loading facilities to enable export<br />

capability of 4.5 million barrels of oil<br />

per day.<br />

The project scope includes:<br />

Installation and commissioning of two<br />

48-inch parallel pipelines, 10 kilometres<br />

onshore and 40 kilometres offshore,<br />

linking the new Fao onshore terminal to<br />

the new SPMs, plus approximately 20<br />

kilometres of infield pipelines, and the<br />

shore crossing for a third pipeline to be<br />

installed during future expansions (a<br />

total of over 120 kilometres of pipeline).<br />

Installation of SPMs complete with<br />

subsea pipeline end manifolds (PLEMs)<br />

capable of receiving and loading Very<br />

Large Crude Carrier (VLCC) tankers.<br />

Fabrication and installation of a 600MT<br />

subsea valve manifold for directing flow<br />

between the existing and future<br />

offshore export facilities.<br />

Dredging works to achieve pipeline<br />

burial and to achieve sufficient water<br />

depth for VLCCs mooring to the SPMs.<br />

Construction and commissioning<br />

(including civil, mechanical and<br />

electrical works) for the new onshore<br />

metering and manifold facilities at<br />

Fao terminal.<br />

<strong>Leighton</strong> Holdings Chief Operating<br />

Officer, David Savage, said “This project<br />

is a fantastic opportunity for <strong>Leighton</strong>,<br />

and coming closely behind the recent<br />

SPM project win in Tanzania, provides<br />

strong recognition of <strong>Leighton</strong>’s strength<br />

and experience in SPM installations.<br />

“In recent years, <strong>Leighton</strong> has built an<br />

enviable track record on SPM’s and large<br />

diameter pipelines, having worked on<br />

some 13 SPM’s around the Asia region.<br />

“This is the first major offshore project for <strong>Leighton</strong><br />

in the Middle East, but with the opportunities in the<br />

Gulf and the MENA region, we are very confident it will<br />

be the start of a strong business line that will provide a<br />

steady revenue volume for both <strong>Leighton</strong> Offshore<br />

and Al Habtoor <strong>Leighton</strong>.”<br />

“Being awarded the Middle East’s largest<br />

and most prominent SPM contract is a<br />

great honour for us and great reflection<br />

of the strength of our capabilities,”<br />

Savage said.<br />

<strong>Leighton</strong> Offshore will use its vessels,<br />

Eclipse, Stealth and Mynx on the project.<br />

Eclipse, Stealth and Mynx are ideally<br />

suited for working on SPM projects, and<br />

provided <strong>Leighton</strong> a key edge in securing<br />

this work. <strong>Leighton</strong> operates a very young<br />

fleet of state of the art vessels, all of<br />

which are fully compliant to latest<br />

class and safety standards including<br />

International Special Purpose Shipping<br />

code.<br />

“In the Middle East we have the benefit<br />

of tapping into Al Habtoor <strong>Leighton</strong>” said<br />

Savage. “Al Habtoor <strong>Leighton</strong> has an<br />

agreement with <strong>Leighton</strong> Offshore to<br />

provide support with logistics and<br />

resource services for offshore projects in<br />

the MENA region and has played a<br />

positive role in securing this project.<br />

“This is the first major offshore project<br />

for <strong>Leighton</strong> in the Middle East,” Savage<br />

said, “but with the opportunities in the<br />

Gulf and the MENA region, we are very<br />

confident it will be the start of a strong<br />

business line that will provide a steady<br />

revenue volume for both <strong>Leighton</strong><br />

Offshore and Al Habtoor <strong>Leighton</strong>. <br />

LOCATION:<br />

FAO TERMINAL, AL BASRAH,<br />

SOUTHERN IRAQ<br />

CLIENT:<br />

SOUTH OIL COMPANY, IRAQ<br />

CONTRACT TYPE:<br />

EPC LUMP SUM<br />

CONTRACT VALUE:<br />

USD733 MILLION<br />

COMMENCEMENT:<br />

EARLY 2011<br />

COMPLETION:<br />

END OF 2012


20<br />

COMPANY NEWS<br />

TOP HSEC<br />

PERFORMANCE<br />

RECOGNISED<br />

THE WINNERS OF THE <strong>2010</strong> LEIGHTON INTERNATIONAL<br />

HSEC AWARD WERE ANNOUNCED IN SEPTEMBER<br />

WITH TWO INDIAN OIL AND GAS PROJECTS WINNING<br />

THE AWARD.<br />

This year’s Health, Safety, Environment &<br />

Community (HSEC) award was won by<br />

the <strong>Leighton</strong> India, Oil and Gas, Pipeline<br />

Replacement Project 2 (PRP 2) project<br />

for the second consecutive year. And a<br />

first for the annual award, a runner up<br />

category was created with the Vizag<br />

Hindustan Petroleum Corp SPM project<br />

(HPCL) winning.<br />

There were four projects nominated<br />

for the award, as follows:<br />

<br />

HPCL SPM (<strong>Leighton</strong> India, Oil<br />

and Gas)<br />

Ramanujan IT Park (<strong>Leighton</strong> India,<br />

Engineering and Construction)<br />

Shuqaiq Pipeline (<strong>Leighton</strong> Malaysia)<br />

Each project was assessed on the<br />

following criteria with each criteria<br />

allocated a percentage of marks:<br />

Health and safety audit – 30%<br />

Environmental audit – 20%<br />

Total recordable injury<br />

frequency rate – 20%<br />

Community development – 10%<br />

Customer feedback – 10%<br />

Innovations (Project Manager’s<br />

presentation) – 10%<br />

The winner, PRP 2, finished with an<br />

overall score of 82.08% and the runner<br />

up, HPCL, came in with 76.82%. The<br />

runner up score was slightly better<br />

than the award winner’s score two<br />

years ago, which demonstrates an<br />

overall improvement of the quality of<br />

the nominees and in general the HSEC<br />

performance within the group.<br />

The PRP 2 project was a clear<br />

winner excelling in most areas, with the<br />

second place being closely fought out<br />

amongst the other three nominees. PRP<br />

2 demonstrated superior leadership,<br />

excellent compliance with the<br />

company’s HSE management systems,<br />

with strong support and participation of<br />

the workforce and subcontractors.<br />

Senthil Kumar Karmegam, Senior<br />

Project Manager of PRP 2 said “It is<br />

a great honour and a great moment<br />

to accept the award twice. The award<br />

proves the project team’s commitment<br />

towards meeting all its targets and<br />

complying with the company’s<br />

expectations. We will definitely be<br />

working hard to win it again next year.”<br />

Tom Ord, Group Manager Health,<br />

Safety and Environment, said “The<br />

PRP 2 project successfully built on its<br />

previous performance to produce an<br />

even better result this year. Particularly<br />

impressive was the strong participative<br />

safety culture displayed by the whole<br />

workforce.


21<br />

WINNER: PRP 2<br />

By Zafar Khan, HSE Manager,<br />

<strong>Leighton</strong> India, Offshore Oil & Gas<br />

“The HPCL SPM project<br />

differentiated itself from the other<br />

two competitors with its excellent<br />

community development program,<br />

themed at improving the environment,<br />

at two local schools.” <br />

The story of PRP 2 begins with 17<br />

people from different companies and ten<br />

different nationalities in an office. The<br />

marine spread was huge comprising 40<br />

vessels with eight major mother vessels<br />

in a very congested ONGC field.<br />

The topside modification in the ONGC<br />

process is an extremely risky job due to<br />

interface with at least four barges and<br />

contractors on the same platform. The<br />

weather condition were also challenging<br />

including the cyclone we faced.<br />

With the leadership of Senthil Kumar<br />

Karmegam, Senior Project Manager,<br />

an action plan was implemented that<br />

includes continuous on-the-job HSE<br />

training with regular audits; identifying<br />

HSE risks and micro planned solutions;<br />

developing the cohesiveness among<br />

the crew who belong to different<br />

nationalities and cultures and<br />

recognising good safe practises by the<br />

crew through awards and appreciation.<br />

The team was equally dedicated<br />

to help the local community through<br />

various programmes. Here are some<br />

examples:<br />

<br />

with the Maharashtra State Blood<br />

Transfusion Council, a record<br />

collection of 178 units of blood was<br />

achieved on day one. Over 200<br />

people participated, both <strong>Leighton</strong><br />

staff and the client, ONGC.<br />

<br />

primary schools<br />

<br />

the PRP 2 team felt inspired to help.<br />

We donated clothes, stationery and<br />

utensils.<br />

<br />

of Mumbai who provides a platform<br />

for their pupils to live independently<br />

through education.<br />

RUNNER UP:<br />

HPCL SPM PROJECT<br />

By Deepak HN - HSE Manager,<br />

<strong>Leighton</strong> India, Offshore Oil & Gas<br />

The HPCL project team has shown<br />

a strong commitment and a systematic<br />

approach to HSE challenges from<br />

the start to finish of the project. This<br />

involved a number of critical offshore<br />

and onshore activities at the project, in<br />

parallel with a peak crew operating more<br />

than 500 people at once and marine<br />

spread of more than 10 vessels.<br />

The project was completed with<br />

no loss time injuries. Through good<br />

planning from the project initial stage,<br />

the risks across the whole project were<br />

identified and controlled before it could<br />

occur. The team worked systematically<br />

with subcontractors and suppliers to<br />

involve them in their HSE efforts.<br />

The team also showed great social<br />

responsibility towards the local<br />

community. They organised programs<br />

to promote long term education for<br />

the local children and helped raise<br />

awareness on the environment through<br />

plays, awards presentation and planting<br />

of trees. We also donated computers<br />

to the local schools. This was highly<br />

appreciated by the local community.


22<br />

COMPANY NEWS<br />

QUARTERLY RESULTS<br />

LEIGHTON ANNOUNCES<br />

RECORD PROFIT OF $612M<br />

AND WORK IN HAND<br />

OF $41.5BN<br />

<strong>Leighton</strong> Holdings<br />

Limited announced a<br />

39% increase in profit<br />

after tax and minorities<br />

to $612m ($440m last<br />

year) and a pre-tax<br />

profit of $843m for the<br />

<strong>2010</strong> financial year. The return on<br />

shareholders’ funds averaged 25% for<br />

the year with a record net operating<br />

cash flow of $1.7 billion.<br />

<strong>Leighton</strong> Holdings’ Chief Executive,<br />

Wal King (pictured), reported that he<br />

was very pleased to report such a<br />

strong profit result which was based on<br />

a solid contribution from Australia, driven<br />

by transport infrastructure, contract<br />

mining, telecommunications and<br />

operations and maintenance, helping to<br />

offset a poor year in property markets.<br />

“Our offshore markets, with the<br />

exception of the Middle East, also<br />

made solid contributions to the result.<br />

Highlights included infrastructure<br />

construction in Hong Kong and India,<br />

the contract mining of coal in Indonesia<br />

and Mongolia, and offshore oil and gas<br />

services,” said King.<br />

“Total revenue, including joint ventures<br />

and associates, was up 2% to $18.6bn<br />

versus $18.3bn last year. The revenue<br />

generating markets for the Group were<br />

infrastructure $10.4bn, resources<br />

$6.4bn and property and building<br />

construction $1.8bn,” he said.<br />

“The Group’s work in hand at 30<br />

June <strong>2010</strong> was 12% higher than last<br />

year reaching a new record high level<br />

of $41.5bn, with 65% from Australia<br />

and 35% from offshore markets. The<br />

order book was boosted by the award<br />

of some $23.5bn worth of new work,<br />

extensions and variations during<br />

the period.<br />

“Since the 30 th June <strong>2010</strong>, the Group<br />

has been awarded an additional<br />

$1.5bn worth of new contracts and we<br />

have approximately $8bn of contracts<br />

which we are in a preferred or single<br />

negotiation position that are expected<br />

to be converted by the end of the<br />

calendar year.<br />

“I’m also pleased to advise that David<br />

Savage has been appointed as an<br />

additional Chief Operating Officer with<br />

responsibility for <strong>Leighton</strong> International<br />

Limited, a wholly owned subsidiary of<br />

<strong>Leighton</strong> Holdings Limited. David was<br />

formerly Managing Director of <strong>Leighton</strong><br />

International and has worked across<br />

Asia with the <strong>Leighton</strong> Group for 12<br />

years,” said King.<br />

<strong>Leighton</strong> Stealth<br />

Labuan skyline


PROJECT UPDATE<br />

23<br />

“David’s appointment is about getting<br />

the span of control right for the business<br />

as we continue to grow and brings<br />

more focus to India and the oil and<br />

gas business, both of which have the<br />

potential to grow into very significant<br />

markets for <strong>Leighton</strong>. I congratulate<br />

David on his appointment.<br />

“The outlook for the Group remains<br />

positive based on a record level of work<br />

in hand, a strong competitive position<br />

and continuing economic recovery in our<br />

major markets,” said King.<br />

“Demand for iron ore, coal, and oil<br />

and gas will increase and should remain<br />

strong as China and India urbanise and<br />

industrialise, and maintain their solid<br />

economic growth.<br />

“We remain positive for the 2011<br />

financial year and expect to report<br />

an increased revenue and operating<br />

profit. Over the longer-term, based on<br />

our projections, the Group’s five-year<br />

aspirational goals of $50bn of work in<br />

hand, $30bn of revenue and $900m of<br />

profit after tax can be achieved through<br />

internally generated funds.” said King. <br />

“...David Savage has been appointed as an additional<br />

Chief Operating Officer with responsibility for <strong>Leighton</strong><br />

International …David’s appointment is about getting the<br />

span of control right for the business as we continue to<br />

grow and brings more focus to India and the oil and gas<br />

business, both of which have the potential to grow into<br />

very significant markets for <strong>Leighton</strong>...”


24<br />

LEIGHTON INTERNATIONAL<br />

HEAD OFFICE<br />

<strong>Leighton</strong> 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 />

MALAYSIA<br />

<strong>Leighton</strong> 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 />

SINGAPORE<br />

<strong>Leighton</strong> Offshore<br />

137 Telok Ayer Street<br />

#05-04<br />

Singapore 068602<br />

t: +65 6327 1978<br />

f: +65 6327 1969<br />

<strong>Leighton</strong> Singapore<br />

Engineering & Construction<br />

137 Telok Ayer Street<br />

#05-04<br />

Singapore 068602<br />

t: +65 6327 1978<br />

f: +65 6327 1969<br />

INDIA<br />

<strong>Leighton</strong> Contractors (India) Pvt Ltd<br />

302 - 303, 3/F Windsor Building<br />

CST Road, Vidyanagari Marg<br />

Kalina, Santacruz (East)<br />

Mumbai 400 098<br />

India<br />

t: +91 22 6719 0000<br />

f: +91 22 6719 0199<br />

Unit No – 802 – 807, Eighth Floor<br />

Vatika City Point, M.G. Road<br />

Gurgaon – 122002<br />

India<br />

t: +91 11 4608 8200<br />

f: +91 11 2677 9427<br />

MIDDLE EAST - NORTH AFRICA<br />

<strong>Leighton</strong> Offshore Middle East<br />

Office No. GO1<br />

Ground Floor, EIB Building No.05<br />

Alfa Building<br />

P O Box 502 656<br />

DMC #14, Dubai<br />

United Arab Emirates<br />

t: +971 4 423 0300<br />

f: +971 4 427 8145<br />

SRI LANKA<br />

<strong>Leighton</strong> 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

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