Quarterly News • June 2003 - Leighton Holdings

NSW/ACT – a business builton long-term relationshipsWe move into the second half of 2003 with a strong forward order book of $1.5billion and a number of exciting opportunities in the civil engineering sector ofour business.Executive General Manager NSW/ACT &Vic/SA/Tas/NZ David SaxelbyThe growth of our businessin civil engineeringis underwritten byour successful, long-termrelationship with the NSW Roadsand Traffic Authority (RTA) andthe commencement of works onthe $880 million Parramatta RailLink (PRL). I commend the PRLproject team for undertaking themassive ramp up of the project,including the establishment ofrigorous project managementsystems and the recruitmentof a workforce within a shorttimeframe. We are preparingfor the arrival in August of theworld’s most advanced tunnelboring machines to take thisproject into its next phase.On the $90 million KaruahBypass, we are constructingAustralia’s longest incrementallylaunched bridge. Thiess hasconstructed more incrementalbridges than any other Australiancontractor and this projectcomplements our core civilengineering skills.We have recorded a solidperformance in our miningand resources activities,maintaining our leading positionin the Hunter Valley coalsector, despite the increasingcompetitiveness of this market.We mine some 14 milliontonnes of coal in the HunterValley, including two milliontonnes from Australia’s deepestunderground coal mine atSouthland. Testament to ourperformance is the extension ofcontracts, through our subsidiaryHunter Valley Earthmoving, atthe Liddell and Westside coalmines valued at $380 million forXstrata Coal.We continue to manage works onthe $228 million redevelopmentof the Royal Prince Alfred Hospitalin Sydney, and have secureda number of smaller buildingopportunities in the last fewmonths. In July 2003, we wereawarded work at Gosford Hospitalfor the design and construction ofa 550-space multi-deck car parkSimone Wetzlar and Peter Kane at the Mt Owen Coal Mineand we will soon commence workon a workshop and office facilityfor Liebherr Australia in theHunter Valley.The application of robusthealth and safety managementsystems, diligence inenvironmental managementand synergistic relationshipswith the community continueto be pivotal to our businessoperations. Most significantlythis year, we have madeconsiderable progress inapplying risk managementprinciples in relation to designand plant safety.With the Australian constructionand resources markets setto improve over the comingyears, we are focused onsecuring a number of emergingopportunities. We believe wehave the right mix of people,resources and systems tocapitalise on this upswing inactivity while, at the same time,remaining committed to serviceperformance and adding valueto our clients’ businesses. ■5 THIESS