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WELCOME

Thank you for down-loading this new and exciting electronic version of

International Construction. It is identical to the printed IC,

cover-to-cover, editorial and advertising, but it is now all on your computer screen.

But the digital ICoffers far more:

With a simple click you can turn pages

click on the contents page and be transferred straight to the chosen editorial section

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word-searchable, giving you even faster access to the information you need.

SITE REPORT:NanjingNo.3 Bridge

EQUIPMENT:Drilling

SECTOR:Crushing &Screening

JANUARY-FEBRUAR Y 2005 Vol 44 No1iinternternnaattioionnaallconstruction

a KHL Group publication

SHOW GUIDESHOW GUIDE:: iCpreviews the new machines that will be on display at ConExpo-Con/Agg 2005 in Las Vegas

ICON Jan-Feb05 Cover.indd 2 31/01/2005 15:22:23

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Information literally at your fingertips.

Did you know that you can utilise this e-magazine in many more ways thanthe traditional paper version of the magazine.

i Searching

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SITE REPORT:NanjingNo.3 Bridge

EQUIPMENT:Drilling


JANUARY-FEBRUARY 2005 Vol 44 No1

internternnaattioionnaallconstruction

a KHL Group publication

OW GUIDESHOW GUIDE:: iCpreviews the new machines that will be on display at ConExpo-Con/Agg 2005 in Las Vegas

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enquiries 100see page 64
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Iimagine all of iCs readers were shocked and saddenedby the news of the tsunami that struck the countries onthe rim of the Indian Ocean with such devastating force in

December. My thoughts and sympathy go out to the familiesand friends of the bereaved.

As is the case with any disaster, natural or man-made, it isthe construction industry that now has to step in for the clean-upand reconstruction work. It is encouraging to see that so many

companies first reaction was to make charitable donations to helpwith the immediate problems, from cash to offers of help in kind,such as free professional services and construction equipment.

As well as repairing the damage to property and infrastructure,it is vital that questions are asked and lessons learned from whathappened. First and most obviously, it is clear that a systemto monitor changes in sea levels in the Indian Ocean is needed.Hindsight is a wonderful thing of course, but it still seemsincredible that there was not even an effective rudimentary warningsystem in place in a region that is no stranger to earthquakes andtidal waves. It took one hour after the earthquake for the resultantwave to hit Thailand, and two hours before it reached Sri Lanka,and I cant help thinking that a tsunami warning system could havehelped save some of the 220000 lives that were lost.

The second key area for thought and debate concerns theconstruction industry itself. Building codes need to be revisedto ensure that the houses and hotels that were swept away inDecember are replaced with structures that have a realisticchance of surviving a tsunami, and which can provide some sort ofprotection from such a powerful wave.

Codes are not enough though. The key factor will be policingand enforcing the regulations. I have already seen reports thatsuggest many of the structures destroyed were built illegally,without planning permission and without adherence to properbuilding codes. It is sad to think that the construction industrycontributed to the death toll through this negligence, but that isthe cold hard truth.

I am reminded of the aftermath of the earthquake that hit

Turkey in August 1999, when contractors were found tohave cut corners in constructing many of the buildingsthat collapsed. The two situations are different in Turkeycodes had been deliberately ignored, with unwashed sea-dredged aggregates being used in concrete while somebuilding inspectors were bribed to turn a blind eye. In thetsunami-hit region, haphazard illegal construction is a fairlywidely accepted practice and is not undertaken with the samecynical intentions.

However, that distinction is academic in the face of whathappened in December. The cold hard truthonce again is that any future natural disastersin the region and they will inevitablyhappen will have unnecessarily high

death tolls unless the constructionindustry is more responsible andbetter policed.

Chris Sleight

Editor

khl officesUNITED KINGDOM (HEAD OFFICE)Southfields, Southview Road,Wadhurst, East Sussex TN5 6TP, UK.Tel: +44 (0)1892 784088Fax: +44 (0)1892 784086e-mail: [email protected]/internationalconstruction

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International Construction, ISSN: 0020-6415, is publishedmonthly by KHL Group c\o SPP, Emigsville, PA andadditional entries. Periodicals postage paid at Emigsville,PA. Postmaster: send address corrections to InternationalConstruction c/o SPP, PO Box 437, Emigsville, PA 14318.

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iCcomment

january-february 2005 internationalconstruction 3
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Axles, transaxles, transmissions, driveshafts, andcomplete drivetrain systems for your next generationof off-highway vehicles. Are you looking for suppliers that share your spirit of innovation?

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JANUARY-FEBRUARY 2005 Vol 44 No1

staff listEditor Chris Sleight BEng (Hons)e-mail: [email protected] tel: +44 (0)1892 786205Deputy Editor Richard Highe-mail: [email protected] tel: +44 (0)1892 786212Editorial Director Paul Marsden BSc

Editorial Team Alex Dahm, Lindsay Gale,Murray Pollok, James VerrinderEditorial Assistant Veronika LaveyAdvertisement Manager Michael Gilberte-mail: [email protected] tel: +44 (0)1892 786231Area Sales Peter Sullivan, Alister WilliamsClassified Sales Executive Norman ChacksfieldCustomer Relations Manager Gordon CurzonProduction & Circulation Director Saara RootesDeputy Production Manager Ross Dicksone-mail: [email protected] tel: +44 (0)1892 786245Design Manager Jeff GilbertDesigner Gary BrinklowProduction Coordinator Paul Thompsone-mail: [email protected] tel: +44 (0)1892 786207Display Production Assistant Philippa Douglase-mail: [email protected] tel: +44 (0)1892 786246Digital Production Assistant Jamie MelvilleFinancial Controller Paul BakerFinancial Assistants Gill Carey, Sean KennyCredit Control Josephine Daye-mail: [email protected] tel: +44 (0)1892 786249Office Manager Katy Storvik-ClayBusiness Development Director Peter WatkinsonBookshop Sales Manager Katy Storvik-Claye-mail: [email protected] tel: +44 (0)1892 786201Circulation and Marketing ManagerJane Gillhame-mail: [email protected] tel: +44 (0)1892 786241Circulation Executives

Sue Topping, Dido WalkerPublisher James King

member of

Fixed crushing and screening plants willalways have a place in the market at large,high-output quarries that are operated over

several decades. However, there is a cleartrend for small- and medium-sized aggregateproduction facilities to use mobile equipment.Chris Sleight reports.

Infrastructure projects rely heavily on drillingequipment for carving cuttings through surfacerock formations, advancing tunnels by the

drill and blast method and the quarrying ofaggregates. iClooks at the latest surface rigsand tunnelling jumbos, and examines the partconsumables play.

internationalconstruction

PREVIEW:ConExpo/Con-Agg

EQUIPMENT:Drilling


icontents

53

International Construction, incorporatingConstruction Industry International and World

Construction, is available free of charge on

request to anyone who falls within the controlledcirculation criteria. Official publication date is the15th of each issue month.

It is available to anyone who does not meet thecriteria at an annual subscription rate of 95

(US$140). Single copies: 10 (US$14).

Circulation audited byBPA International

Held every three years in Las Vegas, theConExpo-Con/Agg exhibition will be the largestconstruction equipment show in the world in

2005. This international event will see manymajor manufacturers launch new machinesfor the world market. iCpreviews the newmachines being launched at the show.

21

9

16

39

6 world newsiC reports on major projects and constructionnews from around the world, including our regularround-up of business happenings.

12 news reportWorld construction spending is set to increasefrom US$ 3.5 trillion in 2003 to US$ 4,8 trillion in2008 and US$ 6,2 trillion in 2013, according to anew report from Global Insight.

16 site reportConstruction of the third bridge over the Yangtze atNanjing, in Chinas Jiangsu Province, is progressingat an impressive pace. The project is made all themore spectacular by the fact that two of thehighest capacity tower cranes ever built are being

used to lift the pylon elements into place. ChrisSleight reports.

58 equipmentThis month we look at Cats new tracked dozers,and review the recent Bauma China exhibition.

65 classified

regular sections

64 reader infoChoose how to receive your free copy of themagazine digital, printed or both. Find outmore about advertisements/editorial articles in

this issue or receive specific product informationdirect from suppliers.

58january-february 2005 internationalconstruction 5
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iCworld news

SMOPYC 2005

March 1 5, 2005

Zaragoza Exhibition Centre,Zaragoza, Spain.

www.smopyc.com

NADC Convention

2005

March 6 9, 2005Las Vegas, US.

Tel: +1 (215) 3484949

Fax: +1 (215) 3488422

www.demoltionassociation.

com

ConExpo-Con/

Agg 2005

March 15 19, 2005Las Vegas, USA.

Tel: +1 414 272 0943

Fax: +1 414 272 2672

www.conexpoconagg.com

Samoter 2005

May 4 8, 2005

Verona Exhibition Centre,Verona, Italy.

www.samoteronline.com

Conex Korea 2005

May 25 28, 2005

Kintex InternationalExhibition Centre,

Seoul, South Korea.

Tel: +82 (0)2 849 5371

Fax: +82 (0)2 849 5312

www.kocema.org

exhibition

diary

internationalconstruction january-february 20056

ASIA: Following the December 26 tsunami, whichkilled more than 220000 people in south-east Asia, theregions governments are beginning the massive task ofreconstruction.

In Sri Lanka, the Ministry of Finance estimates the costof rebuilding and repairing damage to its infrastructure railways, ports, utilities, tourist resorts and housingstock will be between US$ 1.2 and US$ 1.5 billion.

Work along the 900 km of coast hit by the tsunamiincludes a 72 km highway between Colombo and Galle,several bridges and over 30 beachside hotels. The latestGovernment figures estimate 91000 houses and 41schools have been destroyed, with over 25000 housesand 200 schools partially damaged.

The countrys Urban Development Authority is currentlyworking with officials from the United Nations DevelopmentProgram (UNDP) in drawing up plans for its recovery andreconstruction effort.

In Indonesia, the Government estimates the cost ofreconstruction in the Sumatra region to be US$ 1 billionalone. In Banda Aceh, capital of Aceh Province, the localairport, power plant, offices, hotels, roads and smallvillages have all been devastated. The countrys energyministry says the state-run utility, PT Perusahaan ListrikNegara, suffered damage worth US$ 53 million.

Funds pledged to the region from the World Bank, aidagencies and the public currently top US$ 2.5 billion.After an initial donation of over US$ 400 million,the World Banks needs assessment report estimatesthe cost of reconstruction in Indonesia alone to beUS$ 4.5 billion, with India needing US$ 1.5 billion.

World Bank President James D. Wolfensohn hassaid the Bank could eventually contribute as much asUS$ 1.5 billion to the regions reconstruction effort.

So far India has turned down offers of foreign aid.According to Finance Minister P Chidambaram it has theresources to deal with the destruction and wants foreignrelief to be directed to countries in greater need.

Tsunami reconstruction

VIETNAM: The VietnameseGovernment has committed itselfto start construction of five majorinfrastructure projects over the next12 months.

The US$ 2.6 billion, 2400 MWSon La hydro-electric power plantwill be built on the Da river in thenorthern province of Son La.

Construction of the US$ 249million, second production line inthe Nghi Son Cement Plant, which

will have a capacity of 2.15 milliontonnes per year, is also scheduledto start later this year. It will includea cement distribution station incentral Khanh Hoa Province. Whencompleted in 2008 the plant willhave a total capacity of 4.3 milliontonnes per year.

The third project is the US$ 281million, 5548 m long Vinh Tuy

bridge, which will be built acrossthe Hong River in Hanoi. Constructionis due to start this month (February)when the country marks thefounding of the VietnameseCommunist Party.

Fourth on the list is the upgradingof the US$ 370 million, 197 kmsection of Highway 70, which runsfrom northern Lao Cai Province tothe Doan Hung District of Phu ThoProvince. Construction is scheduled

to start later this year and shouldbe completed by the end of 2008.

Also on the list is the US$ 330million enlargement of the Lang-Hoa Lac expressway, linking Hanoiwith Highway No 21. It will be140 m wide, five times its currentwidth. Construction will start laterthis year and should be completedby 2007.

Infrastructure go ahead

JCB is one of the many industry companies to donatemoney and equipment to the clean-up operation. It haspledged US$ 2 million of construction equipment, andthis backhoe loader at work near Chennai, India is one ofthe first tranche of 19 machines. Environmental

constructionCHINA: The municipal governmentof Beijing has signed an agreementwith the China Development Bank(CDB) for a CNY 50 billion (US$6.02 billion) loan for environmentalconstruction.

The loan will be used for constructionprojects in infrastructure andenvironmental treatment of thecapital, as part of the preparationsfor the 2008 Olympic Games,according to Chinese language newsagency Xinhua.

The China Daily also reports thatBeijing is to scale back on real estatedevelopment in the city in 2005.It will impose strict limitations onthe construction of office buildings,apartments, hotels and shoppingmalls inside the Third Ring Road.Restrictions are also to be placedon the sale of land for housingdevelopments.

India investsINDIA: India is to invest INR 20trillion (US$ 440 billion) in itsinfrastructure sectors roads,ports, telecom, irrigation and energy in the next 10 years, accordingto the Ministry of State forCommerce (MOC).

Speaking at the annual exportsawards function of the ProjectsExports Promotion Council of India(PEPCI), an MOC spokesman saidabout 50% will be spent in the

construction sector alone. The MOCadvocates a consortium approachfor construction, engineering andconsultancy companies to securelarge international projects inturnkey modules.

The Government has alsoannounced plans to upgrade 25airports at a cost of US$ 916million.

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Hillhead 2005

International quarrying &

recycling exhibitionJune 21 23, 2005

Buxton, UK

Tel +44 115 945 3890

Fax: +44 115 958 2651

www.hillhead.com

APEX 2005

(Access Equipment

Exhibition)Sept 22 24, 2005

Maastricht,

The Netherlands.

Tel. : +31 (0)547 271566

Fax : +31 (0)547 261238

www.apexshow.com

RentEX 2005

(Rental Equipment

Exhibition)Sept 22 24, 2005

Maastricht,

The Netherlands.

Tel. : +31 (0)547 271566

Fax : +31 (0)547 261238

www.rentexshow.com

Batimat 2005

(Building materials &

equipment exhibition)November 7 12, 2005

Paris Expo, Porte de

Versailles, Paris, France

Tel: +33 1 47 56 51 84

Fax: +33 1 47 56 21 89

www.batimat.com

Intermat 2006

April 24 29, 2006

Paris, France.Tel : +33 (0)1 49685248

Fax : +33 (0)1 49685475

www.intermat.fr

M&T Expo 2006

May 30 June 3, 2006

Imigrantes Exhibition CenterSao Paulo, Brazil

Tel : +55 11 4197 9111

Fax : +55 11 4197 9110

www.mtexpo.com.br


iCworld newsPlan 2500financingCOLOMBIA: The ColombianGovernment has given its financialbacking to Plan 2500, a NationalDepartment of Planning (DNP)initiative to pave more than2500 km of roads throughoutthe country. At present the projectrequires COP 1.8 to 1.9 trillion(US$ 760 to 800 million) to pavenearly 3100 km of roads.

Initially the idea was to secure aseries of loans over the projectslifetime, thereby spreading the costto the Government and the privatesector. The decision has now beentaken to back the project throughgovernment funds only.

The first phase is expected to costCOP 75 billion (US$ 31 million).

INDIA: The Asian Development Bank(ADB) has approved two loans to Indiato aid infrastructure development.

The first, for US$ 400 million, willupgrade and increase the capacity of566 km of key roads along the north-south corridor, enabling the networkto meet growing traffic demand forup to 20 years. The 4000 km corridor

is one of three key highways theGovernment has earmarked for theUS$ 13 billion National HighwaysDevelopment Program, to becompleted by 2007. The other twoare the 6000 km Golden Quadrilateraland the 3300 km east-west corridor.The loan covers about 60% of theprojects US$ 670.6 million cost,with the Government contributingUS$ 270.6 million.

ADBs second loan, for US$ 250

million, is for a multi-sector projectfor infrastructure rehabilitation inthe Jammu and Kashmir regions. Itwill restore existing infrastructurefacilities and services in two keyinfrastructure sectors, the urbanenvironment and transport sectors.

The urban component will coverwater supply and drainage systems.

The transport component will financethe rehabilitation of about 1500 kmof deteriorated roads and about 80damaged bridges in 14 districtsacross the State. Investment needsfor the rehabilitation and developmentof infrastructure in the State isestimated to amount to about US$ 4billion. ADBs loan covers 70% of theUS$ 358 million project cost withIndias national and State Governmentscontributing US$ 108 million.

ADB loans approved for India

Urban construction in ChinaCHINA: Wuhan, capital of Hubei Province, will spend CNY 13 billion(US$ 1.6 billion) on urban construction in 2005. Almost CNY 7.7 billion(US$ 930 million) will be collected by the city itself, with CNY 4.1 billion(US$ 495 million) coming from two development zones, Wuhan Xinqu,Wangjiadun and the business zone at Yangluo airport. The money will be usedto construct urban road networks, a Yangtze River tunnel, the No 2 ring road,and water treatment plants. Work will also start on the second phase of No 1light rail track, which will be extended to Dongxi Lake and Chenjiaji. Completionshould lead to construction starting on the No 2 ring road later in the year.

Longest bridgeCHILE: The Chilean Ministry for

Public Works has given the go aheadfor the US$ 523 million, 2.6 kmlong Puente Bicentenario de Chilosuspension bridge project in thesouth of Chile.

The structure will be the longestbridge in South America. Featuringaccess roads with a total length of16.4 km it will connect the mainlandwith the countrys biggest island,Chilo, and will form part of thelegendary Panamericana (Pan-American highway). The main goalof the project is to boost economic

development in Chiles southernregions. A Hochtief led consortiumwill plan, build, finance and operatethe toll bridge on the basis of a public-private partnership (PPP) contract.

Construction will start in the secondhalf of 2007 and it is scheduled toopen in late 2012. Afterwards, theconsortium will operate the bridge fora period of 30 years.

Port

developmentCAMBODIA: The Japan Bank forInternational Cooperation (JBIC) hassigned a loan agreement for YEN4.313 billion (US$ 42 million) withthe Royal Government of Cambodiafor the Sihanoukville Port UrgentExpansion Project.

Sihanoukville port, Cambodias onlyinternational seaport, is 240 kmsouth of the capital Phnom Penh. Theloan will finance the improvementand expansion of the container berthand the installation of large cargo

handling machinery.The central region of Cambodia,

extending between the cities ofPhnom Penh and Sihanoukville, isthe countrys economic centreand home to about half of thepopulation.

It is expected to become thecountrys growth corridor and willdrive economic expansion.

ANTARTIC: Three winning concept designs for the new British AntarcticSurvey Halley VI Research Station have been announced.

The winning teams are Buro Happold and Lifschutz Davidson (shown),FaberMaunsell and Hugh Broughton Architects and Hopkins Architects andExpedition Engineers. Buro Happold/Lifschutz Davidsons proposal featuresthree, two tier, independently serviced linear craft, linked by bridges,

standing on adjustable, stainless steel legs. Each has a similar structure,consisting of a rib cage of curved beams that enclose the upper decksupported on a rigid chassis. The lower deck is a rigid trussed box set outin a 2.7 m wide structural grid, forming the base of the craft. They will beclad in an outer skin of soft translucent fabric, acting as a weather shield tokeep wind and snow off the interior skin, and the two elements of claddingprovide a high level of insulation. A winning design will be announced inSeptember 2005.

Ship lift

CHINA: The China Yangtze RiverThree Gorges Project DevelopmentCorporation is to begin constructionof a ship lift later this year.

The 120 x 18 x 3.5 m lift willbe the biggest of its kind in theworld. When complete in 2009 itwill be able to accommodate shipsup to 3000 DWT (dead weighttonnages), or barges up to1500 DWT.

Ships passing through the ThreeGorges Project, which is beingbuilt on the middle reaches of theYangtze River, have been using aship lock since June 2003, whichtakes three hours for a single trip.When the lift is finished it will take

about 40 minutes for ships andboats to pass through the dam.

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European slowdownEUROPE: Growth in the European construction sector will begin to slow down this year due to a downturn in newhousing construction and a tail-off in civil engineering activity, according to Euroconstruct. Overall growth in 2005 isexpected to be +1.9%, compared to +2.1% in 2004. The rate of increase is expected to fall to +1.5% in 2006 and+1.2% in 2007.

Euroconstruct, a group of economic forecasting companies covering 15 European countries, says the new residentialbuilding sector grew +4.4% in 2004. That rate is expected to slow to +0.7% this year before turning negative in2006 (-2%) and 2007 (-1.6%).

This downturn will largely be in Western Europe, where the emphasis is expected to shift towards repair andmaintenance of the existing housing stock. However, the new build residential sector in the developing markets ofEastern Europe is expected to accelerate sharply.

The outlook for civil engineering is similar, with Euroconstruct expecting massive growth in Eastern Europe to becontrasted by a cool-down in the West. Eastern European infrastructure building grew +5.5% in 2004, but this figureis expected to shoot up to +12.4% this year. Western Europe saw civil engineering output rise by just +1.7% in2004. Marginally better growth of +2.7% is forecast this year.

Non-residential construction growth will also be high in the East, with growth expected to reach +9.9% a year in thenext three years. The west will be more subdued, with +2,6% growth this year rising to +3% by 2006.

CREDIT:RRP/MelonS

tudio

iCworld news


IraqidevelopmentIRAQ: The World Bank hassigned three grant agreementswith representatives from theinterim Iraqi government forreconstruction and developmentprojects in Iraq totalling US$ 145million.

Financed by the World BanksIraq Trust Fund, US$ 90 millionwill be spent on emergencyprojects in health, water supplyand sanitation, and reconstructionin urban centres. The remainingUS$ 55 million will be used tostrengthen the financial andprivate sectors, of which US$40 million will finance the building

of a modern telecommunicationsnetwork across the country.

The proposed EmergencyBaghdad Water and SanitationProject (US$ 65 million) will helprestore basic water supply andsanitation services in Baghdadthrough reconstruction andupgrading existing networks andtreatment facilities.

Another grant agreement forthe Emergency Water Supply andSanitation and Urban DevelopmentProject (US$ 90 million) will

help restore basic water supplyand sanitation services in ninegovernorates outside Baghdad.

In addition, the project willundertake reconstruction ofroads, sidewalks, and communitycentres in poor cities throughoutthe country.

KOREA: The Korean ConstructionEquipment ManufacturersAssociation (KOCEMA) is expectingweak market demand in 2005 tocause a dip in sales of constructionequipment for the first time since2001.

A recent survey of its membersrevealed a pessimistic outlook for2005, following a sharp declinein orders in 2004. The surveyrevealed that construction equipment

manufacturers expect to sell about16500 units domestically, down-7.5% from 2004.

It also said any rise in diesel fuelprices could hurt demand, whilegovernment plans to encourageprivate investment in publicinfrastructure projects may not resultin an increase in sales until 2006.

Exports, however, are likely togrow +7.8% annually to 42400 unitsin 2005 (39345 units in 2004).

Last year exports rose by +52.6%compared to 2003.

Total exports could reach US$ 2.45billion, promising to make it thefirst year that the figures will passthe US$ 2 billion mark. However,declining Chinese market growthcould cut profit margins.

CHINA: UK-based architects Richard Rogers Partnership has releasedimages of its masterplan for the rail station in the Panyu district ofGuangzhou, China. Expected to cost US$ 641 million it would be the largeststation in Asia covering an area of 266 ha. It will form a network of fourkey rail hubs in the country, the others being Shanghai, Bejing and Wuhan.It is also the destination of the Guangzhou-Wuhan line, which will see theworlds fastest trains reach speeds of 300 km/hour.

Domestic sales downScaffold fallsCHINA: Four constructionworkers have been injured duringconstruction of the Tanglu Road inPudong, China. The injuries occuredafter scaffolding, being used duringconstruction of a retaining wall,collapsed. All four workers weretaken to the nearby ChuanshaPeoples Hospital. Two men arebeing treated for serious injuries,while two were released followingtreatment for minor injuries.

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ConExpo 2005

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iCbusiness news


Holcim investsINDIA: Swiss aggregates andcement producer Holcim hasannounced plans to enter the Indianmarket with a total investment ofUS$ 800 million. It has formeda strategic alliance with GujaratAmbuja Cements and has madea public purchase offer for The

Associated Cement Companiesand Ambuja Cement Eastern. Ifboth offers are accepted, they willgive Holcim a share in some 20million tonnes of cement productioncapacity.

In a separate development Holcimhas made a UK 1.8 billion (US$3.39 billion) cash bid for AggregateIndustries. The company is a majorsupplier of aggregates, asphalt andready mixed concrete in the UK andUS. It has total aggregate reserves

of 5.1 billion tonnes and has theproduction capacity for 7 million m3

of concrete per year.

Bounce backFRANCE: Powered accessequipment manufacturer Pinguely-Haulotte saw its sales rise +30% in

2004 to 285.8 million (US$ 374million). Full results will be announcedin March, but the company says itachieved a 5% net profit margin andis expecting +15 to +20% salesgrowth this year.

China cranesCHINA: Manitowoc has announcedplans to open a new tower cranefactory in the city of Zhangjiagang,in Jiangsu Province, China. Potain

tower cranes have been built inZhangjiagang since 1984, and thenew factory will replace the existingfacility in 2006 and increase theproduction capacity for this rangeof cranes. It will also producecomponents for other Manitowoccranes.

UAW payUS: Caterpillar has reached a newsix-year pay agreement with theUnited Auto Workers (UAW) Union,which represents more than 9000of its US employees. UAW membershad rejected two previous offers fromCaterpillar, and overall the negotiationprocess has taken almost a year.However, this is an improvementon the previous contract, which took6 years to agree.

Roller buySWITZERLAND: Amman hastaken over Stavostroj, a compactionequipment maker based in theCzech Republic. The companyhas bought 92% of Stavostrojsshare capital, and has launched apublic offer for the remaining 8%.Stavostroj employs 550 people atits factory in Nove Mesto and exports90% of the equipment it makes.

AC gets LiftonSWEDEN: Atlas Copco hasacquired fellow hand-held andmounted hydraulic breakermanufacturer Lifton. The companyis headquartered in Denmark,with a factory in Bulgaria. It has

annual sales of SEK 55 million(US$ 8 million) and employs 141people. The purchase price was notdisclosed.

Cement disputeINDONESIA:The four-year disputebetween Cemex and the IndonesianGovernment over the ownersip ofstate-owned cement companyGresik could be nearing resolution.Cemex bought 25.5% of thecompany in 1998, with an option

to gain majority control in 2001.However, the Government has so farfailed to sell its contolling interestdue to concerns about foreginownership of the company.

Cemex is thought to be lookingat the possibility of internationalarbitration to resolve the issue, whilenewly elected Indonesian presidentSusil Bambang Yudhoyono hasmade the resolution of the dispute akey objective for his first 100 daysin office.

exchange rates, january 2005

Value of 1: Symbol AU$ BRL UK CNY INR YEN MXN RUR SAR ZAR KRW CHF US$

Australian Dollar AU$ 2.07 0.412 6.41 0.592 33.8 80.0 8.70 21.7 2.90 4.59 800 0.917 0.775Brazilian Real BRL 0.484 0.199 3.11 0.287 16.4 38.6 4.22 10.5 1.41 2.22 386 0.442 0.375British Pound UK 2.43 5.02 15.6 1.44 82.0 194 21.2 52.9 7.04 11.1 1942 2.23 1.88Chinese Yuan CNY 0.156 0.322 0.0642 0.093 5.26 12.4 1.36 3.40 0.452 0.714 125 0.143 0.121Euro 1.69 3.49 0.695 10.8 57.1 135 14.7 36.5 4.88 7.75 1350 1.55 1.31Indian Rupee INR 0.0296 0.0611 0.0122 0.19 0.0175 2.36 0.258 0.641 0.0855 0.136 23.6 0.0271 0.0229Japanese Yen YEN 0.0125 0.02590.005160.08040.00743 0.424 0.109 0.272 0.0362 0.0575 10 0.0115 0.00972Mexican Peso MXN 0.115 0.237 0.0471 0.735 0.0679 3.88 9.14 2.49 0.333 0.526 92 0.105 0.0885Russian Ruble RUR 0.0461 0.095 0.0189 0.294 0.0274 1.56 3.68 0.401 0.134 0.211 36.9 0.0424 0.0356

Saudi Riyal SAR 0.345 0.711 0.142 2.21 0.205 11.7 27.6 3 7.49 1.58 276 0.316 0.267South African Rand ZAR 0.218 0.451 0.0897 1.4 0.129 7.37 17.4 1.9 4.73 0.631 175 0.2 0.169South Korean Won KRW 0.00125 0.00259 0.000515 0.00802 0.000741 0.0423 0.0998 0.0109 0.0271 0.00362 0.00573 0.00115 0.000970Swiss Franc CHF 1.09 2.26 0.449 7 0.646 36.9 87 9.52 23.6 3.16 5 872 0.847US Dollar US$ 1.29 2.67 0.531 8.28 0.764 43.7 102.9 11.3 28.1 3.75 5.92 1031 1.18For example US$ 1 = AU$ 1.29

US: Caterpillars sales exceeded the milestone figure of US$ 30 billion in 2004 a +33% increase on 2003. Its netprofits hit the record level of US$ 2.03 billion, up +85% on 2004.

Jim Owens, chairman and CEO of Caterpillar said, Without question, 2004 was one of the most remarkable yearsin our proud history. In 1997, with sales and revenues of less than US$ 19 billion, we set the goal of becoming aUS$ 30 billion company by the middle of this decade. While many though it was overly ambitious, today were able tocelebrate that tremendous accomplishment ahead of schedule.

It was not all good news though. Profits were below stock market expectations, a fact recognised by Caterpillar,and blamed on high raw material costs. Were disappointed with our cost structure, particularly steel-related costsand supply chain inefficiencies due to a lack of material availability, said Mr Owens.

Of the total US$ 30.25 billion sales last year, Caterpillar sold US$ 18.84 billion of construction and miningequipment, a +38% increase on 2003. The remainder of its revenues came from engines and financial products.

In cash terms, the biggest increase was seen in North America, where revenues from machinery sales increasedUS$ 3.03 billion to US$ 10.34 billion. However, in percentage terms, this +41% rise was less than the growth seenin Latin America, where Caterpillar sold +63% more machinery last year for a total of US$ 1.51 billion.

Machinery sales were up +35% or US$ 642 million in the Asia Pacific region to US$ 2.49 billion. Growth in Europe,Africa and the Middle East (EAME) was +25%, with equipment revenues totalling US$ 4.51 billion.

The company expects revenues to rise a further +12 to +15% this year, which would be from US$ 33.88 billion

to US$ 34.79 billion. Of this rise, 8% is expected to come from higher volumes, with the remainder coming fromimproved margins and increases in financial products. The rise of +38% in machinery sales revenues seen last yearwas made up of +33% more volume, with better prices and currency effects contributing the remaining +5%.

Cat hits sales milestone
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Holcim Awards is a competiton of the Holcim Foundation

for Sustainable Construction based in Switzerland. The

independent Foundation is an initiative of Holcim Ltd, oneof the worlds leading suppliers of cement, aggregates,

concrete and construction-related services with Group

companies and affiliates in more than 70 countries.

www.holcimfoundation.org

*In partnership with the Swiss Federal Institute of

Technology (ETH), Zurich, Switzerland; the Massachusetts

Institute of Technology (MIT), Boston, USA; TongjiUniversity (TDX), Shanghai, China; the University of So

Paulo (USP), Brazil; the University of the Witwatersrand

(Wits), Johannesburg, South Africa.The universities define

the evaluation criteria and lead the independent juries in

five regions of the world.

Help build foundations for the future.

Meet the challenge and enter the first

global Holcim Awards competition for

projects in sustainable construction*.

Prize money totals USD 2 million.

Apply at www.holcimawards.org

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Construction growth

iCnews report


Global construction spending is expected to increase more than +75%between 2003 and 2013, according to Global Insights latest report onthe industry. The company says worldwide construction spending was

US$ 3.5 trillion in 2003, and that this figure is expected to reach US$ 6.2trillion in 2013.

The biggest construction market in the world is the US, which was worthUS$ 1039 billion, almost a third of the world total, in 2003. This is followedby Japan (US$ 465 billion), China (US$ 242 billion), Germany (US$ 221 billion)and France (US$ 173 billion). The only other developing construction marketsthat rank in the worlds 20 largest besides China are India (US$ 65 billion),Mexico (US$63 billion), Brazil (US$ 49 billion) and Russia (US$ 34 billion).

Growth prospects

But while these emerging construction markets may not be as large asthose of the developed economies inEurope, North America and the Asia-Pacific region, it is these countries thatare expected to see the greatest annualgrowth rates over the coming years.Ranking these top 20 countries in termsof Global Insights growth forecastsputs China at the top of the list, withthe other four developing countries allfeaturing in the top seven, where theyare joined by Canada and Ireland.

Ireland is the exception to the rule asfar as growth in the rest of WesternEurope is concerned. While Irelandsconstruction spending is expected toexpand +3.2% per year between 2003and 2008, most of the other countriesin the region will see annual increasesin output of less than +2%. Only theUK and Spain are expected to beat this,with growth rates of +2.1% and +2.2%respectively.

Indeed, overall annual growth inWestern Europe is expected to be just+1.8% between 2003 and 2008, below

The worlds 20 largestconstruction markets

Country Construction spending Average Growth(US$ billion) 2003 to 2008

US 1039.3 +2.5%Japan 464.5 +1.5%China 241.9 +6.2%Germany 220.6 +1.2%France 173 +1.8%Italy 160 +1.6%UK 151.2 +2.1%

Spain 144 +2.2%Canada 105.9 +4.3%Netherlands 70 +1.4%India 65 +5.1%Mexico 62.6 +3.3%Brazil 48.5 +2.8%Australia 42.3 +2.2%Russia 33.9 +3.8%Switzerland 32 +1.4%Austria 30.7 +1.6%Ireland 26.3 +3.2%Belgium 25.7 +1.7%Denmark 24.4 +1.7%

SOURCE: Global Insight

World construction spending is set to increase

from US$ 3.5 trillion in 2003 to US$ 4.8 trillion

in 2008 and US$ 6.2 trillion in 2013, according

to a new report from Global Insight. The rate of

growth in the industry is expected to increase

from an average of +1.2% between 1998 and

2003 to +2.6% between 2003 and 2013.

Chris Sleightreports.

Construction Growth

%C

onstructionGrowth
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expected to increase


iCnews report

the world average of +2.6%. All the other regions are expected to exceed thisaverage, with Asia (excluding Japan) leading the way with a figure of +5.1%. Itis followed by Eastern Europe (+3.5%), Asia including Japan (+3.3%), theMiddle East and Africa (+3.2%), South America (+2.9%) and North America(+2.7%). The annual growth in Japan is only expected to average +1.5% overthe five-year period, which explains why it pulls down the otherwise buoyantAsian region.

Many of these forecasts represent a marked turnaround. For example, theAsian construction market as a whole contracted an average of 0.8% peryear between 1998 and 2003. The improvement in South America is evenmore marked, with this region seeing an average yearly decline of 4.3% inthe same five-year period.

In fact the rate of growth in construction is expected to improve in all regionsof the world between 2003 and 2008. The only area where growth is forecast

to be lower is North America. This construction market enjoyed year-on-yeargrowth averaging +3.8% between 1998 and 2003, but this figure is expectedto fall to +2.7% in the five years to 2008.

The major influence in this region is of course the US, which is expected tohave +2.5% growth in this period. However, neighbouring Mexico is looking at+3.3% annual increases, and Canada will be particularly buoyant, with yearlygrowth predicted to average +4.3%.

Sector by sector

The largest segment of the construction industry in 2003 was residentialbuilding, which accounted for 44% of the US$ 3.5 trillion total, or US$ 1.52trillion. This was followed by infrastructure (32% or US$ 1.11 trillion) andnon-residential construction (24% or US$ 852 billion).

Although residential construction represents the biggest slice of the

industry, it is also the sector that Global Insight thinks will grow the least in thecoming years. The average increase in spending is only expected to be +1.5%per year, compared to +3.2% forinfrastructure building and +3.6%for non-residential construction.

The infrastructure sector is ofcourse important in developingcountries, and it is expected to bethe main driver of growth in SouthAmerica, Eastern Europe, the MiddleEast & Africa and Asia (excludingJapan) up to 2008. The annualincrease in infrastructure spendingin these regions is expected to range

from +3.7% (Africa & the MiddleEast) to +6.1% (non-Japan Asia).

The picture is different in moremature markets, such as NorthAmerica and Japan, where non-residential construction is expectedto be the high growth sector. Theexception to this developed/developingmarket rule is Western Europe,where infrastructure investment isforecast to lead the way, thanks toincreased Government spending.

For more information, visit www.globalinsight.com

Risk vs. rewardEmerging markets may offer higher growth than developed countries, butthe pay-off to these potentially big rewards is that there is often morerisk involved in working in these regions.

This bubble diagram plots Global Insights risk score, where a lownumber means low risk, against growth for the worlds 20 largestconstruction markets. The size of the bubble is in proportion to the size ofeach countrys construction market. The average growth is +2.6%, andthe average risk score is 30.6 points, and these two figures have beenused to divide the diagram into four sections.

The bottom-left corner are low growth, low risk markets, which isdominated by developed countries. Most of the Western Europeancountries can be seen clustered together here, and the quadrant also

contains the US and Japan. The US could be said to be the mostattractive market here, as it offers the highest growth, with the leastrisk. Japan looks unattractive, with relatively high risk, but low growth, asdoes Germany, with less risk but the lowest growth potential.

In contrast, the top-right corner contains high-growth, high-riskmarkets, and the five countries falling under this category are the majordeveloping markets Brazil, China, India, Mexico and Russia. The muchtalked-about Chinese market is clearly the biggest of the five and has thehighest growth potential, but it is also one of the most risky, with onlyRussia scoring higher on this scale.

Fortunately none of the top 20 markets land in the bottom-rightcorner of the graph, which is characterised by high risk and low growth.However, there are two countries in the top-left corner, which combinesthe attractive characteristics of above-average growth with below-

average risk. Canada stands out in this respect, and has the added bonusof having a fairly large construction industry.

Ann

ual%G

rowth

Risk Score
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iCsite report

The Yangtze is the longest river in Asia, running 6300 km from

its source in the Kunlun Mountains of southwestern China to its

mouth on the East China Sea just north of Shanghai. It is a key

transportation route through some of Chinas most populous and

economically active areas, but at the same time it is a formidable

natural obstacle.

About 300 km from the end of its course, the Yangtze flows

past the city of Nanjing on its southeastern bank. Here it is more

than 1.2 km wide, and such is the barrier it poses that this city of

more than 5 million people has only 2 bridges over the river. One of

these is a combined road and rail link to the city centre built from1960 to 1968, while the second is a more recent cable-stayed

road bridge on the northern outskirts of

the city with a central span of 628 m.

Interestingly, the city centre crossing is a

national construction landmark, being the

first major bridge in China to be entirely

designed and constructed without foreign

help or expertise.

However, all that is changing with the

construction of Nanjing Bridge No. 3 to

the south of the city. This cable-stayed

road bridge will provide a strategically

important link in Nanjings metropolitan

highway network, completing an orbitalroute around the city on both banks of the

Yangtze. The northern loop of this ring

road crosses the Yangtze at the existing

second crossing, opened in March 2001,

and there are striking similarities between

the two bridges. Both are cable-stayed with


Bridging the

Construction of the third

bridge over the Yangtze at

Nanjing, in Chinas Jiangsu

Province, is progressing

at an impressive pace. The

choice of prefabricated

steel segments, rather

than cast in-situ concrete

for the pylons a first

for China has helped

shorten the programme,

and the project is made

all the more spectacular

by the fact that two of

the highest capacity tower

cranes ever built are

being used to lift these

elements into place.

Chris Sleightreports.

One of the

prefabricated steel

sections waiting to

be lifted into place

on the south pylon.

Each pylon

connection

requires some 400

bolts, both inside

and outside thestructure.
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Pylon progress

When complete the bridge pylons will reach a height of 217 m. Eachcomprises two towers joined by four cross-members, the lower ofwhich will carry the road deck, some 33 m above the river. Aboveroad level each tower is made up of 21 prefabricated steel sections,generally about 10 m high and weighing 130 to 150 tonnes,although the heaviest is 160 tonnes.

The cranes chosen to lift these sections into place are two PotainMD 3600s, built by Manitowoc. These are thought to be the highestcapacity tower cranes ever built, and are undoubtedly the largesttower cranes in service on a construction project today. Fitted with40 m jibs, they can lift a maximum of 160 tonnes at a radius of18.7 m, giving them a load moment of almost 3000 tm.

To put this in context, the largest standard tower cranes usedon everyday construction projects rarely have a lifting capacity inexcess of 300 to 400 tm, so the MD 3600s have about 10 timesthe capacity of a normal construction crane.

At their full height the cranes will have anunder hook height of 232 m. The operatorsare saved having to climb this high on

ladders, thanks to the installation of anAlimak TC50-200 rack & pinion personnel liftinside the cranes towers themselves.

Chinese first

According to Mr Li, the Nanjing No.3 Bridgeis the first bridge in China to use steelpylons. Asked why the design departed fromthe traditional cast in-situ approach, Mr Lisaid, There are three reasons. First, thesteel is high strength and can be built easily


Yangtze

iCsite report

The southern MD3600, pictured

here with anunder-hook heightof around 130 m.

The cranes towersare large enough

to comfortablyfit the 2-person

Alimak rack &

pinion personnellifts on the inside.

central spans in excess of 600 m, with three traffic lanes in eachdirection.

On a larger scale, the new bridge will complete a major road linkbetween three of central Eastern Chinas major cities, Shanghai,Nanjing and Hefei, and is also a crucial part of a much biggerroad project to connect Shanghai with the city of Chengdu, some1600 km inland.

Overall the scheme comprises the bridge, which has a spanbetween the pylons of 650 m, along with some 15 km of roads andapproach viaducts to connect it into the motorway network. The

project got underway in December 2002, and completion is due inDecember this year, with the bridge expected to be open for trafficin early 2006.

The cost of the bridge was originally put at RMB 3 billion(US$ 362 million), but with such a quantity of steel being used some 33000 tonnes the final cost is not clear. Asked aboutthe impact of rising steel prices, Li Yu, assistant director for thecontractor, Nanjing No. 3 Yangtze River Bridge Co. Ltd. said, Yesof course, the project costs are rising.

As the name suggests, this contractor is a joint venture formedspecifically to build the bridge. The lead company in the consortiumis China Railway Shanhaiguan Bridge Co., while its partners areHunan Road & Bridge Company, China Harbour Engineering &Construction No. 2 Bureau and China Railway BaoQiao.

The two pylons are each seated on a steel caisson, which wereprefabricated in a dry dock in three sections. Measuring some84 m by 29 m in plan, the upper and lower sections are 7.8 mhigh, while the middle segment is 6.5 m high. Once complete, thesewere floated into position on the river and sunk to form the 22.1 mhigh finished piers. Each weighs 3250 tonnes and is supported by30 2.8 m diameter steel encased drilled piles.
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in a factory, which is better than building on site. The second isfor environmental protection. The third is a general trend for largebridges, like those in Japan, to be built from steel.

The pylon sections are delivered to site by barges, which aremoored to the bridge piers. The cranes can then lift them into placeon the towers, where each connection between sections requires anaverage of 4000 bolts.

Speed is certainly a feature of the project. With 2000 workers onthe site, which is working 24 hours a day, seven days a week, the

contractor is beating the planned programme of one pylon sectionbeing lifted and fixed every two days. When iCvisited the site in mid-November, this had been speeded up to one lift per day.

At this point in the project, the North pylon was only six levelsaway from completion, with the next level including the second uppercross-member. Completion of this structure was due on December10 last year.

The South pylon was less advanced, having reached a height ofabout 110 m. However, the accelerated construction programmemeant it was expected to reach completion in mid-January, aheadof the scheduled finish of February 10.

Once each pylon is complete, the contractor will move on to installthe bridge decks. Like the pylon sections, these box-girder steelstructures will be transported to site on barges and craned intoposition. The Potains will be used to lift the sections immediatelyadjacent to the pylons into place, but after that the contractor willmount cranes of their own design on the bridge deck itself to liftsubsequent sections into place. iC

The big pictureThe new bridge over the Yangtze atNanjing will help complete a key roadlink between the regions largest cities.It is also important in the bigger pictureof Chinas infrastructure developmentprogramme.

When complete, the bridge will join uptwo major regional highways, the Nanjingto Shanghai motorway and the Nanjing toHefei link. Shanghai, Nanjing and Hefei arethe capitals of their respective Provinces Shanghai, Jiangsu and Anhui, withNanjing located about 300 km northwestof Shanghai. Hefei is a further 150 km duewest from here.

Shanghai is of course the largestand most commercially significant of

these metropolises, with a populationof between 13 and 15 million people.However, Nanjing and Hefei are also majorsettlements. Nanjings population is inexcess of 5 million people, while Hefei hasmore than 4 million inhabitants. The threepr

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