John Holland Quarterly Review, Issue Three, 2007 - Leighton ...

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welcomeTrue partnership involves a sharing of risks as well as returns, a close relationship of mutualunderstanding and a commitment to the long term. In our view, a partner is a trusted companionAustralia faces major infrastructurechallenges and meeting thesechallenges requires partnerships thatdeliver the best skills and experiencein the market. As one of Australia’slargest and most diverse specialistcontracting businesses, John Hollandstrives to be ‘partner of choice’.with specialist skills and sound judgment who can help chart new and uncertain territory.Our history includes some of this country’s most successful projects, so John Holland has longrecognised the importance of partnerships: with our clients, with our communities and with ourcolleagues. Partnerships are one of our key operating principles and we celebrate our partnershipsin this edition of the Quarterly Review.We pride ourselves on effective partnerships with our clients. The diversity and reach ofthe John Holland divisions allow us to work together with government and industry to delivertailored solutions. This edition features impressive partnerships that our business divisionshave established to address national infrastructure challenges in their sectors.Additionally, our commitment to alliance contracting has seen us establish our RelationshipContracting Group. This market-leading initiative works with the John Holland divisions andtheir partners to facilitate best-practice alliancing.Our recent acquisition of C.E. Marshall and Sons Earthmoving, also in this edition, is testamentto the success of flexible partnerships in the contract mining sector. Other industry alliances,such as the Defence Maintenance Management joint venture, continue to be a winning formula.This edition also looks at the many partnerships we have with training and educational institutionsas well as charitable and research groups. Just as importantly, we celebrate the internal partnershipsbetween our divisions and between John Holland employees. Our Emerging Leaders programme isone way John Holland strives to sustain a culture of excellence and growth over the long term.As always, I hope you enjoy this edition of the Quarterly Review and welcome your feedback.Your views and comments can be sent to corporate.affairs@jhg.com.au. Best wishes to all ofour partners and everyone at John Holland until our next Review in July.ON THE COVER> Nick Duggan and Mick Gardiner are two members of the John Holland team workingon major alliance projects around the country. As part of Sydney Water Corporation’s Priority Sewerage Programthey are working with partners UGI, MWH and Manidis Roberts to deliver important infrastructure upgrades.people performance partnerships profit

quarterlyreviewISSUE THREE 20072 jh news: Delivering 3G, Making the Grade,Towards a Brilliant Career, Joining Forces4 Moving Mountains: Marshall Mining & Earthmoving6 First Coal the Goal: RG Tanna Coal Terminal7 Back to the Future: 101 George Street Parramatta8 Water, Water Everywhere: Tackling the Water Shortage11 Alliance-Wise: Relationship Contracting Group12 Generation Next: The Emerging Leaders Programour operating principlesJohn Holland’s approach to partnerships means we enjoy an industry-leadingreputation as an alliance and joint venture partner of choice. The partnership culturethat John Holland has built over the years enhances the competencies and skills ofour people. Our ability to meet the demands of a range of challenging projects has ledto consistently improved performance and profitability. By establishing partnershipsand by working in close collaboration with our project partners, stakeholders and thecommunities within which we operate, John Holland ensures the delivery of successfulprojects with exceptional outcomes.

peopleJHNEWS is the place to discoverall the latest information aboutpartnersJohn Holland – one of Australia’slargest and most diverse specialistcontracting businesses. This iswhere you’ll get a flavour of what’sperformhappening across the Group, fromnew projects and initiatives, to eventsprofiand information about our people,performance, partnerships and profit.making the gradeThe Sandgate Rail Grade Separation project providedan opportunity for John Holland to strengthen bothinternal and external partnership-building expertise.Delivering 3GJohn Holland’s telecommunicationsdivision is playing an instrumental rolein the roll-out of Australia’s newestcommunications network.The division has been involved in theimmense task of designing, installingand commissioning over 3,300 mobilebase stations for hand-over to the Telstra3GSM network.The ongoing expansion of the Telstra3GSM network is part of a $60-70million per annum contract that providesTelstra with a turnkey solution for itsnational coverage.“In terms of sheer geographical reachthis rollout is delivering the world’slargest national 3GSM network.Our many ongoing partnerships rightacross Telstra are critical to its success,”said Paul Gallo, General Managerof Telecommunications. ] johnholland.com.auThe $45 million project saw successful collaboration between John Holland’sNSW/ACT and Rail divisions and external partners Australian Rail Track Corporation(ARTC) and Ansaldo Switch and Signal.As the first major works undertaken by ARTC in New South Wales, the projectwas a litmus test, removing a bottleneck in Sandgate’s rail system where coal andpassenger rail lines intersected and paving the way for the upgrading process atcoal loader facilities in Newcastle.jhnews imagesDespite challenging ground conditionswhich led to a 30% increase in thescope of works, the team deliveredthe 15 month project on schedule ata launch attended by Deputy PrimeMinister Mark Vaile.Project Manager Stephen Chaselingcommented, “Effective communicationwas one of the key factors in thesuccessful completion of works, fromthose on the ground right through tosenior management.”This page: Deputy Prime Minister Mark Vaile and ARTC Chairman Barry Murphy at therecent grand opening of the Sandgate Rail Grade Separation.Facing page: Victorian TAFE students will benefit from John Holland’s sponsorship ofthe 2007 Victorian Training Awards. John Holland’s Defence Maintenance Managementcapabilities have expanded with the awarding of a new Comprehensive MaintenanceServices contract.

hipst anceTowards aBrilliant CareerWhen choosing a career, everybit of encouragement helps.So John Holland is partneringwith the Victorian Department ofInnovation, Industry and RegionalDevelopment in the 2007 VictorianTraining Awards.John Holland will reward onetalented school-based apprenticewith a $10,000 study fellowship.Four finalists will also receive $500.Winners will be announced at theAwards Presentation Dinner in August.joining forcesWith a new contract win in Southern Victoria,John Holland’s joint venture with Multiplex FacilitiesManagement now holds Comprehensive MaintenanceServices contracts in three Defence regions.The Department of Defence recently awarded the Defence MaintenanceManagement joint venture the Comprehensive Maintenance Services contractfor Southern Victoria. Starting in July, the contract comprises some $240 millionin facility and project management works and will keep a 30-strong team busyover the next five years.With 62 Defence facilities, seven Major Defence bases and 35,000 items of fixedplant and equipment, the 50,000-hectare region covers the Puckapunyal MilitaryArea, Watsonia, RAAF East Sale, RAAF Williams, HMAS Cerberus and VictoriaBarracks Melbourne.“DMM has established a formidable track record in defence maintenance,” saidAndrew Henderson, General Manager, John Holland Services. “We’re pleasedto be in joint venture again on this significant contract in Victoria.”Southern Victoria is one of 12 Defence Support Group geographic regions thatprovide a wide range of services to defence elements engaged in operational,training, support and administrative functions.PM Opens $400m OPAL Nuclear Reactor > Prime Minister John Howard recently openedAustralia’s newest nuclear research reactor in Sydney’s Lucas Heights. One of the top threereactors in the world for nuclear research, it was constructed by John Holland in partnership withConnell Wagner, Cox Richardson, Downer Engineering and INVAP. The project team was awardedthe 2006 Master Builders Australia Award for National Commercial Builder of the Year.quarterlyreview ISSUE THREE 2007 [

movingmountainsonsite: Equipment and coal at the the Blackwater Mine. Toby Bradbury and Brad Marshall oversee the Marshall Mining and Earthmoving operations at theBlackwater Mine in Central Queensland. Opposite page: Kim Vacher and Graham Keech, members of the Marshall team.With the resources sector in full swing, John Holland’s new mining division is fillingan important niche in contract mining through its acquisition of C.E. Marshall andSons Earthmoving.After successfully completing theacquisition, John Holland Mining nowprovides tailored mining solutions inQueensland and New South Walesand has retained the Marshall nameas Marshall Mining and Earthmoving.The central Queensland town ofBlackwater will remain the headquarters,where clients include the BHP BillitonMitsubishi Alliance (BMA), Australia’slargest coal producer.The sheer physical scope of the BlackwaterMine is staggering. Some 80kilometres in length, Blackwater is oneof Australia’s largest open-cut coal minesand produces almost 14 million tonnesof coking and thermal coal each year.Marshall currently undertakes pre-strippingand dozer push services for the BMAdragline operations, using equipmentvalued in excess of $150 million.“John Holland seized the opportunity todiversify into the surface mining sector,which is enjoying significant growth,”said Toby Bradbury, Managing Directorof John Holland Mining. “Retaining theMarshall name was key because of theclose partnerships between the Marshallfamily, its clients and its employees.We’re pleased that Brad Marshall isstaying with us in this new phase.”Marshall is distinguished in the marketby its strong client relationships,complete customer focus and firstratemining expertise. This successfulapproach recently won Marshall a threeyear contract at the Werris Creek CoalMine in New South Wales, where workcommenced in March.At Werris Creek the team providesa complete mining service includingmine design, drill and blast, overburdenremoval and coal-mining in a complexgeological setting. Coal is dispatchedto Newcastle without washing, whichrequires particular attention to cleancoal recovery techniques as part of themining process.“The mining sector typically has toadapt to process peaks and one-offchallenges in operations,” Toby explains.“We use our mining expertise to provideflexible, highly efficient earthmoving andmining services which literally pave theway for our clients.”And the future? “John Holland has thefinancial strength, management systemsand safety protocols to grow MarshallMining and Earthmoving further as asignificant and well regarded contributorto the mining sector.” ] johnholland.com.au

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first coal the goaljohn Holland has reached a crucial milestone in themanufacture, construction and commissioning ofextensive coal loading infrastructure in the centralQueensland port of Gladstone.onsite: First coal arrives as part of the CQPA RG Tanna CoalTerminal expansion.In a major milestone for the RG TannaCoal Terminal project in Gladstone, thefirst delivery of coal was recently loadedonto a waiting ship. The busy terminalnow boasts new on-shore coal handlingfacilities, approach jetty, extended marineberth and added shiploader, with theteam completing works without anydisruption to existing operations.Valued in excess of $170 million, theproject is one of the largest ever capitalworks undertaken by the CentralQueensland Port Authority. It alsostands as one of the largest structuralmechanical process programs currentlyrunning in Australia.The expansion of the RG Tanna CoalTerminal will see the outloading capacityof the facility increase by more than 50%from 40 million tonnes to around 65 milliontonnes of coal each year.“Given the scope of the works, we formeda partnership with the CQPA team tocommission this sophisticated conveyingand shiploading system,” said PhilHollywood, National Operations Managerfor John Holland’s Structural MechanicalProcess division.It was this close collaboration betweenJohn Holland and the CQPA thatensured the successful maintenance ofoperational coal handling activities, bothonshore and offshore, throughout thecourse of the project.“This milestone is an outstanding resultfor all involved,” said Phil.made to measureJohn Holland took a uniqueapproach to the constructionand transport of the RG Tanna CoalTerminal shiploader. After fabricationin John Holland’s facilities atRichlands, the mobile gantry loaderwas assembled in Brisbane’s ForgacCairncross Dockyards. It was thentransported fully-assembled nearly600 kilometres to its final installationin Gladstone. ] johnholland.com.auonsite: The shiploader, aboard its heavy-lift transport ship, leaves Brisbane at the start of its 600km journeyto Gladstone.

onsite: 101 George St Parramattaback to the futurean unanticipated four-month archaeological dig was only one of the challengesfacing John Holland on the 101 George Street project in Parramatta, New South Wales.Yet the $45 million office tower was recently completed on budget and some six weeksahead of schedule.John Holland’s ‘101 Team’, led byProject Manager Brett Moore, workedclosely with developer LeightonProperties and owner Colonial CustodialServices to design and construct the14-storey office tower in the heart ofWestern Sydney.“The site itself was a tight fit in termsof access and storage, so we werealways going to be working within theconstraints of a busy city,” said Brett.“But we also experienced first-handParramatta’s rich colonial heritage.”Once John Holland took possession,a detailed four-month archaeologicalinvestigation was undertaken inaccordance with Heritage Councilrequirements. Relics dating back to theearly 1800’s were uncovered, includingconvict wells, evidence of animalholding pens and the floor of one ofAustralia’s oldest public houses.Despite the archaeological delayand the need to stem a watercourseflowing through the sandy soil duringexcavations, the 101 Team worked inan effective partnership withconsultants, subcontractors andlocal authorities to deliver a six-weekadvantage and significant cost savingsto their client.“The evolving relationship with ourclient was critical,” said Brett. “At everystage we recommended solutions towork around the constraints we faced.Leighton Properties took these ideason board and trusted us to implementthem. We’re proud to be a part of 101George Street’s history.”quarterlyreview ISSUE THREE 2007 [

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water, watereverywhereIn tackling the uncertainties and challenges posed by water shortages, John Holland’sWater and Tunnelling Divisions lead the sector in alliance contracting in Australia,working closely in alliances, joint ventures and evolving client relationships.Across the country, John Hollandrecognizes that ‘relationship style’contracts combine the strengths ofparticipants and match the evolvingneeds of our clients.John Holland’s water and tunnellingdivisions use the latest alliancingtechniques and technology to addressthe unique challenges of each project,supported by the newly-formedRelationship Contracting Group.These evolving partnerships oftenincorporate expertise at early stagesof decision-making, which is of crucialbenefit in the high-profile water sector.With flexible relationships, clients can rollfurther work into existing projects, savingon tendering and team establishmentcosts and capitalizingon the valuable John Holland knowhowwhich already exists on-site.Successful John Holland alliancesaround the country include:> John Holland’s six-year, relationshipstylecontract with Melbourne Waterdraws on our expertise as preferredtunnelling contractor during projectdevelopment phases, prior to entryinto a contract for the constructionphase. Construction will begin onthe $400 million Northern SewerageProject Stage One in June 2007,followed by the Melbourne MainSewer Replacement and theRingwood South Bypass in 2008.> The Brisbane Water Enviro Alliance,formed in 2003 with Brisbane Water,JWP, MWH and Aquatec Maxconincludes the upgrade of the Oxley,Sandgate and Wacol wastewatertreatment plants. The project hasevolved from a $152 million to a $210million contract with the addition of theCAMBI sludge treatment process tothe Oxley Wastewater Treatment Plant,the upgrade of Wynnum’s WastewaterTreatment Plant and a proposed WaterReclamation Plant at Wynnum.> John Holland’s collaboration withUGI, MWH and Manidis Roberts onSydney Water Corporation’s PrioritySewerage Program (PSP) beganin 2002 as a $200 million programof works to design, construct, testand commission seven sewerageschemes in the Sydney, Illawarra andBlue Mountains regions. Followingthe success of the partnership, theSydney Water Board recently extendedthe PSP Alliance Agreement to includethree further sewerage schemes,growing the PSP to over $400 millionin capital works.finding solutionsJohn Holland first partnered with Veolia Water, SKM and Cardno on the SouthEast Queensland Desalination Project on the Gold Coast in 2005. Workingwith the Gold Coast City Council during design of the plant, the John HollandTunnelling Group assisted the team to replace a proposed overland pipe witha better solution: two 2.1km intake and outlet tunnels.The success of this partnership prompted John Holland, Veolia Water and SKM toform a new project team with Maunsell to bid for the Sydney Desalination Project.onsite: Opposite page: Ian Cameron and Matt Chaseling on Sydney Water Corporation’s PSPin Brooklyn. Above: The Kurnell site for the proposed Sydney desalination plant.quarterlyreview ISSUE THREE 2007 [

shortlistedJohn Holland and itspartners have beenrecognized for theirinnovative approach topartnership contracting.alliancewiseThe Middleborough Road Alliancehas been short-listed for the AllianceContracting Excellence Awards inthe category of Excellence in MajorCapital Alliances.The project was an example ofpartnership collaboration working at itsbest. Together, VicRoads, John Holland,Connex and the Victorian Department ofInfrastructure successfully completedthe rail underpass, eliminated thecongested railway crossing in Box Hilland upgraded nearby Laburnum Stationin 28 days of around-the-clock work.The winner of the Excellence in MajorCapital Alliances award will beannounced in early May.onsite: The successful works on the VictorianMiddleborough Road Alliance.John Holland has long been viewed as an industry leaderin the field of alliance-style contracting. With thealliancing trend gathering momentum in the constructionindustry, John Holland’s new Relationship ContractingGroup is proving a timely initiative.Although officially founded in December2006, John Holland’s RelationshipContracting Group has played animportant role in the development ofthe company for much longer than that.Originally part of John Holland’s waterdivision, RCG grew from the need todevelop an industry-leading approachto the use of alliance and relationshipcontracts to deliver major waterinfrastructure.The journey began around ten yearsago with the delivery of the first publicsector alliance in Australia, the SydneyWater Northside Storage Tunnel.Since then, the group has grown intoa valuable resource for John Holland’sspecialist and construction divisions– and their partners - across Australia.“We used the water division’s expertisein alliancing to develop a centre forexcellence in relationship contracting,”explains Robert De Wet, Manager,Relationship Contracting Group.“The RCG is tasked with two centralroles: growing John Holland’s marketleadership in alliances and relationshipcontracts and further developing theoverall John Holland relationship culture.”The strength of John Holland in harddollar contracting is complemented bythe firm’s significant expertise in alliancecontracting. Alliancing’s integrated teamapproach gives increased flexibilityto respond to changing work scope,improved risk management andoptimised use of resources. A focuson groundbreaking project performancealso leads to reduced costs andproject lead times as well as improvedemployee satisfaction and retention.Communication and collaborationbecome key in projects whereJohn Holland and its partners sharecontractual risks. The relationshipsbetween the organisations and thepeople involved become central tothe success of alliance projects.As technology is a major facilitator forconnecting diverse stakeholders, thegroup will soon launch its own webtechnology: Alliance Connextion.“We teach stakeholders methodsof working together to ensure projectsuccess,” said Rob. “RCG has beena part of ten successful bid wins, sowe have an immense amount ofexperience and many insights intothe science of collaboration. We fullyexpect the alliancing trend to continueon major infrastructure projects aroundthe country.”

John Holland: Partner of ChoiceThe exponential growth in alliancing in the Australian construction industry hascreated many challenges. At the forefront of this growth, John Holland embarkedon a planned approach to becoming a partner of choice in groundbreaking projects.The long term goal was to develop a core group of relationship, alliance andcollaboration specialists to provide an in-house specialty service available to allJohn Holland’s diverse businesses. The official establishment of the RelationshipContracting Group in December 2006 was the culmination of this goal.onsite: Main image: Ian Smith and Daniel Boorman from Sydney Water Corporation’s PrioritySewerage Program - Brooklyn Dangar Island. Inset: Ian Cameron and Rod Hawes are part ofthe delivery team at the Brooklyn site.quarterlyreview ISSUE THREE 2007 [ 11

onsite: Above: Michael D’Addona and Andrew Burr taking part in the 2007 Emerging Leaders Program. Below: Group Managing Director David Stewartwith Sally Friedlander, Group Manager Organisational Development, Raelee Hobson, Learning and Development Manager and the 17 Emerging Leadersselected from across John Holland.generation nextJohn Holland’sOrganisationalDevelopment team hasintroduced severalinitiatives to promotecross-functionalrelationships across thedifferent divisions ofthe business.The two-year Emerging LeadersProgram is a leadership developmentinitiative which includes a week-longresidential course, bringing togetherhigh-performing individuals from acrossJohn Holland’s construction andspecialist divisions.Held in Sydney in March, the residentialcourse provided 17 John HollandEmerging Leaders from all around thecountry with intensive tuition in theleadership skills, behaviours, knowledgeand attitudes needed to develop theirleadership capability.The program culminated in eachindividual presenting their personaldevelopment plan to John HollandMining Managing Director, TobyBradbury. Toby provided participantswith constructive feedback and practicalideas for implementing their initiativesin the business. This led to a wideranginggroup discussion whichcanvassed many ideas for improvementsand innovations in the business.The program finished with 17exhausted but highly motivated andinspired employees who were notonly enthusiastic about their futureleadership roles within John Holland,but also confident of the steps neededto achieve their goals in partnershipwith their colleagues.“We’re delighted with the progress ofthe third Emerging Leaders Program,”said Sally Friedlander, Group Manager,Organisational Development. “Sixty-onepeople have now participated in theProgram to date, putting us well on theway to creating a leadership andcoaching culture at John Holland.”The Emerging Leaders Program seeks to:• Generate at least 80% of succession candidates for Operations Manager andGeneral Manager roles from internal appointments by 2010;• Demonstrate commitment to developing and promoting from within John Holland;• Establish a leadership benchmark for John Holland and the construction industry;• Create future networks; and• Retain key talent.12 ] johnholland.com.au

Corporate AffairsLevel 6, 235 Pyrmont StreetPyrmont NSW 2009Tel. +61 2 9552 4288 Fax. +61 2 9552 2711E. corporate.affairs@jhg.com.auEco Management and Audit System certified paper.The paper used in this Quarterly Review is generated from sustainable forests and sustainable production methods. It has received Eco Managementand Audit System certification, which certifies that this paper has little or no negative effect on the environment. EMAS is the only paper accreditationsystem backed by Greenpeace. This is one way that John Holland is striving towards becoming a carbon neutral, environmentally responsible company.

new work> Water• Coffs Harbour Infrastructure Program> SMP• BHP Storage Shed Extensions• Loy Yang Unit 3• Yallourn Conveyor Relocation& Refurbishment• Worsley Alumina Utility Vacuum Pipeline> Western Region• Telstra Pier Street Exchange• Turner River Bridge> Southern Region• Essendon Tram Depot• Glenhuntly Tram Depot• Doncaster Road Tram Tracks> Northern Region• Greenslopes Hospital Carpark• Enoggera Redevelopment Stage 1> NSW/ACT Region• HQO Commercial OfficeDevelopment• Coffs Harbour Infrastructure Programhelping bridge the gapJohn Holland may have completed work on the Eleanor Schonell Bridgein Brisbane, but the project team’s investment in the local communitycontinues to pay dividends.At the start of the Eleanor Schonell Bridge project in 2005, the John Holland team decided that communitycollaboration would be an important facet of the two-year project. “The reason we did this was to ensurethat we participated in and became part of the community,” said Project Manager Dave Balmer.The relationship between John Holland and the Multiple Sclerosis Society of Queensland began withproject staff holding team social events to fund minor maintenance works and equipment for MS branchoffices around Brisbane. The relationship culminated in a $60,000 donation raised during the bridge’sopening celebrations.Through John Holland, the MS Society was introduced to another major stakeholder: the Universityof Queensland. This led to the two groups collaborating on a number of important medical researchprojects, including ground-breaking research into possible linkages between MS and the brain, madepossible for the first time by joint funding from the MS Society and the University.The Eleanor Schonell Bridge project created a bricks-and-mortar connection between the Universityof Queensland campus and Dutton Park while shaping new hope and future possibilities for thewider community.onsite: Chairman Janet Holmes à Court at the opening celebrations for the Eleanor Schonell Bridge.