Leighton International's Magazine, Perspective, Issue 6 2010
Leighton International's Magazine, Perspective, Issue 6 2010
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