bontang coal terminal, indonesia · laingorourke.com.au bontang coal terminal, indonesia the...

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Bontang Coal Terminal, Indonesia

The expansion of the Bontang Coal

Terminal will double its handling capacity

from 300,000 to 600,000 tonnes of coal.

Laing O’Rourke constructed a system of

yard conveyors, transfers, an overhead

(skyline) conveyor and tripper, and

installed a series of six feeders.

Pha Lai Coal Handling Plant

The innovation and quality of

Vietnam’s largest coal-fired power

station was recognised with a UK

Quality in Construction Award.

NewGen Kwinana, Western Australia

Laing O’Rourke’s expertise in civil,

mechanical and electrical engineering

was pivotal to the successful

completion of the NewGen Kwinana

power station. NewGen Kwinana

is Western Australia’s most modern

and efficient baseload power station.

Pipelines

Jemena to increase capacity of Queensland Gas Pipeline in 2009Jemena, formerly known as Alinta East, is a leading infrastructuredevelopment and management company.

Jemena uses its unique capability as an asset owner, manager, developer and service provider to meet the infrastructure challenges of the 21st Century. It delivers vital gas, water and electricity services to millions of people and businesses across the country.

102 Infrastructure Association of Queensland Yearbook 2009

Jemena manages over $8 billion worth of gas and electricity assets, including Melbourne’s Multinet Gas and United Energy and Jemena Electricity distribution networks; Sydney’s Jemena Gas Networks; the ActewAGL Gas and Electricity Networks in the ACT; and, the Eastern and Queensland Gas Pipelines. Jemena is owned by Singapore Power International.

In Queensland, Jemena is increasing the capacity of its Queensland Gas Pipeline that runs from Wallumbilla to Gladstone and Rockhampton. Construction of this project has commenced and will be completed in later 2009 to meet increase demand for gas.

Originally built during 1989 to 1991, the 627km Queensland Gas Pipeline and Rockhampton Branch Line transports gas from the Surat and Cooper Basins, the Denison Trough and the southern Bowen Basin.

Gas is supplied to large industrial customers including Queensland Alumina, Rio Tinto, Orica, Boyne Smelter and Queensland Magnesia as well as to households and businesses via the distribution networks within Gladstone, Rockhampton and Wide Bay.

The decision to expand the pipeline has been made in response to industrial and economic growth in the Gladstone region. Projected gas demand will require the looping of a 113 kilometre section of the existing pipeline and the installation of midline compressors.

Project Management is being undertaken by Jemena’s Major Projects Team. The Front End Engineering Design, survey of the easement and existing pipeline, and detailed pipeline design have been completed. Reviews have also been undertaken to ensure the project meets cultural heritage and environmental needs.

Although the new pipeline is in an existing easement a Jemena Stakeholder Manager visited all landholders to discuss details of the project, respond to their specifi c needs and to negotiate an agreed access list with them. Open house days have also provided an opportunity for the general community to ask questions and be informed about the project.

Jemena sourced the Australian made 406mm diameter, steel welded and duel layer fusion bonded epoxy coated pipe from Port Kembla.

Pipelines

Infrastructure Association of Queensland Yearbook 2009 103

Aerial view of Mila compressor station, NSW

Compressor housing, cooling tower and pipework at Mila, NSW

Pipelines


The Major Projects Team set a vigorous tenders process for the appointment of a construction contractor that included inspection tours of the pipeline expansion route prior to the tenders being submitted. It was important to Jemena that the successful tenderer had a high focus on safety, quality and the environment.

The successful construction contractor, AJ Lucas is expected to complete the pipeline between April and August 2009.

An essential part of the expansion project is the installation of two in-line compressor stations. These compressors will be located at Jemena’s existing sites north of Banana and south east of Rolleston townships.

Jemena’s Major Projects Team appointed Enerfl ex as the compressor station contractor following the successful completion of a similar station on the EGP at Mila, NSW in 2008. The Team managed approvals and preparation of the sites in readiness for the stations to be built. Earthworks are complete and the foundations poured ready for the delivery of gas turbine/compressor packages from the USA in April.


Ports

Wiggins Island Coal Terminal Project – Port of GladstoneWith the full capacity of the Port of Gladstone’s existing coal terminals already committed, and a number of new mines and expansions proposed in the nearby Bowen and Surat Basins, the Gladstone Ports Corporation Limited (GPC) has engaged Connell Hatch Engineering to complete the Feasibility and Detailed Design phases of the proposed Wiggins Island Coal Terminal.

Demand for coal has increased signifi cantly in the last decade due to its low cost and stable supply compared to other fossil fuels, and despite the current global economic crisis, the outlook still remains positive for coal exports in the future.

As such, a consortium of 17 coal companies has proposed to fund the project and has been given preferred proponent status by the Queensland Government - fi nancial close is required by July 2009.

The project’s Environmental Impact Statement was signed off by both State and Federal Governments in 2008, allowing GPC to move to full feasibility and detailed engineering for the terminal to meet its start-up target of 2012-13.

The terminal is being designed as a Greenfi eld Three Stage construction project.

In Stage One, a rail receival station, overland conveyor, stockyard, wharf and shiploader would be constructed. This would provide an export capacity of 25 Mtpa (million tonnes per annum) and has the potential to generate up to $1.8 billion in annual export earnings.

The feasibility study for the project was completed in December 2008 by Connell Hatch Engineering. The study proposed the terminal be designed as a hybrid model rather than a traditional stacker reclaimer model. This would allow increased levels of coal blending and the ability to stockpile coal at the terminal – features that are currently provided at Gladstone’s RG Tanna and Barney Point Coal Terminals for Southern Bowen and Moura coal producers.

The design features an above ground bottom dump rail receival station, reducing the need for excavation and eliminating confi ned maintenance areas. The coal would then travel approximately 6 kilometers along an overload conveyor to the stockpiles being constructed on Golding Point.

The coal would be placed on the ground using a gantry stacker, which allows for the fully automated placement of coal anywhere within the stockyard area, minimizing the use of bulldozers in stockpiling.

During reclamation, bulldozers would be required to push stockpiled coal into a number of underground

discharges, dropping the coal onto a conveyor located in tunnels underneath the stockyard.

By reclaiming coal from two or three separate discharges, it can be accurately blended on the main belt by varying the coal rate via a control gate which is opened and closed to vary the quantity of coal fl owing onto the conveyor.

This simple yet effective reclamation system provides an effi cient and accurate means to blend the wide range of coal types found in the nearby hinterlands to meet customers’ market requirements.

A wharf would be constructed two kilometers offshore, accessing the Port of Gladstone’s natural deepwater harbour, which would safely handle cape class vessels. One shiploader capable of loading vessels at over 6,000 tonnes per hour would be constructed.

Stages Two and Three of the project would provide two additional rail receival stations, increased stockpiling and a further two wharves and shiploaders. This would provide approximately 70 Mtpa of export capacity through the completed terminal.

The Detailed Design phase is currently well progressed with the major aspects of Stage One design expected for completion by the third quarter of 2009.

Rail Infrastructure proposed to service Wiggins Island Coal Terminal will be staged in accordance with the construction of the terminal. The rail system will provide access for both diesel and electrifi ed trains servicing both the northern (Blackwater System) and southern (Moura System) mines.

The WICT site - Golding Point

Green offsets, green technology and the most stringent environmental policies have been employed to ensure the Wiggins Island Coal Terminal has minimal impact on the local environment and community.

Under the Vegetation Management Act, GPC will provide vegetation offsets, including the rehabilitation of land and the conservation of key areas, to compensate for any land clearing required.

Loss of marine plants through wharf development activities will be offset by the rehabilitation of mangrove, saltmarsh and seagrass beds as identifi ed by the Department of Fisheries in the Port Curtis Region.

The project design has been focused on ensuring high environmental standards are set by the terminal design. The capture of all wharf run off, the ability to place coal onto the ground with a maximum drop of only two meters and the use of sprays at the gantry stacker will mitigate both dust generation and emissions into the environment.

The development of Wiggins Island Coal Terminal will not only greatly enhance Queensland’s ability to facilitate the export of the State’s number one export to 33 potential markets, but its economic multiplier

will be important for both the region and the State in generating further development in support services and infrastructure.

In addition, the Queensland State Government recently announced that the project has the potential to provide over 1,000 jobs during the construction phase and approximately 150 permanent operational jobs in Stage One.

Along with its coal exporting capabilities, the Port of Gladstone also services a number of other local industries, and with its natural deepwater harbour and vast state development area, is becoming a hot spot for future industrial growth.

Several industries have already recognised this and a number of projects are under investigation for development in the near future.

For further details regarding the Wiggins Island Coal Terminal, please contact the Project Team at [email protected]. For information about all other Port of Gladstone operations and projects, please visit the GPC website www.gpcl.com.au.

Ports


A 3D model of the proposed

gantry stacker for the new WICT

Overall WICT site drawing

BAUER Spezialtiefbau GmbH is one of the largest specialistfoundation construction companies in the world with offices inover fifty countries. Offering creative and innovativefoundation solutions to the construction industry.

Bauer Foundations Australia specialises in the design and construction of:

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Engineering Building - Adelaide UniversityDiaphragm Wall and CFA Piling

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Ports

Port of Brisbane – delivering on promisesIn the midst of challenging world economic conditions, the Port of Brisbane Corporation is continuing to deliver on its commitment to invest in critical new infrastructure to support and drive future growth.


For the 2007/2008 year the port reached fi fteen years of continuous growth in total trade, and set a new record of 30.2 million tonnes. This represents 7.7% growth on the previous year.

Container trade performed well, reaching its 20th year of positive growth, with a 7.7% increase to 942,716 teus (containers).

Despite the current global economic uncertainty, the Corporation remains optimistic about its future prospects, and is keeping its commitment to deliver a record capital investment program over the next fi ve years.

Total capital expenditure for the last fi ve years has exceeded $724 million, and the Corporation has budgeted to spend in excess of $850 million over the next fi ve years.

New berths to boost container capacity One of the Corporation’s biggest achievements in 2008 was the completion of its seventh dedicated container berth – Berth 10 – several months ahead of schedule. The 372m berth, constructed at a cost of $65 million, was offi cially commissioned by the Minister for Transport, Trade, Employment and Industrial Relations, the Honourable John Mickel MP on 3 February 2009 and is leased and operated by Patrick Terminals. The port’s container stevedores, Patrick and DP World Brisbane, now control 900m of quayline each.

Work is continuing on the construction of Berths 11 and 12, which will be occupied by Hutchison Port

Holdings (HPH) on completion. With the establishment of HPH at Berths 11 and 12, Brisbane will become the fi rst port in Australia to introduce a third stevedore.

In mid-2009 the Corporation also expects to complete its other major infrastructure project – the new General Purpose Berth. The 210m berth and terminal area will signifi cantly boost the port’s capacity to handle bulk and break-bulk cargoes.

Portgate Estate to provide trade support

The development of Portgate Estate is a critical part of the Corporation’s plan to provide key back-up areas at strategic port locations to ensure the port can support projected trade growth into the future.

Portgate Estate, located just minutes from Fisherman Islands, is zoned for the port industry with the indicative use being warehousing, logistics centres, and cargo distribution.

The fi rst stage of the estate is being developed by Tzaneros Enterprises, with several tenants already in occupation and negotiations with appropriate tenants continuing.

(L-R) Berth 10, and the site of the future

Berths 11 and 12

Offi cial Commissioning of Berth 10 on 3 February 2009

Innovation in reclamation trials to give future capacityA key factor that sets the Port of Brisbane apart from its competitors is the absence of urban encroachment and the ability for substantial port expansion.

The Corporation has constructed the Future Port Expansion Precinct (FPEP), which provides an additional 230 hectares of land for terminals and back-up land for warehousing.

The fi rst stage of the project involved the construction of a perimeter seawall which was completed in March 2005.

The second stage involves the progressive fi lling of the enclosed areas over the next couple of decades, using the dredged waste materials from channel maintenance and fi ll generated from new berth developments.

There is a continued strong demand for land and infrastructure at the Port of Brisbane, with future land-use requiring signifi cantly higher service loadings.

In 2006, three international companies were chosen to participate in ground improvement trials, namely Van Oord, Boskalis and Austress Menard.

Subsequently, the Corporation has commissioned Austress Menard to undertake vacuum consolidation treatment of a 9.1ha site.

Wick drain and surcharge trials undertaken by Van Oord, Boskalis and Austress Menard are now in the fi nal stages of review.

Duplication of the Captain Bishop Bridge to improve port access The Corporation has commenced work for the duplication of Captain Bishop Bridge and associated road works, to address the growing trade and traffi c demands of the Port of Brisbane.

The Captain Bishop Bridge links the main land to Fisherman Islands, providing road transport access to the Port of Brisbane.

With heavy traffi c to and from the port growing 79% between 2003 and 2005, the continued increase of traffi c along the Gateway Motorway since then, and the development of many industrial properties in the areas east of the motorway, this upgrade is essential.

It will provide a number of benefi ts including the ability to handle wider and heavier load capacities to and from Fisherman Islands, improved safety for road users, and reduced risk of a port closure if an accident occurred on the Captain Bishop Bridge.

Setting the benchmark in sustainable planningIn 2007 the Corporation prepared a new Land Use Plan, to guide and direct future land uses across its diverse property portfolio. The Land Use Plan 2007 identifi es and confi rms appropriate land uses in various precincts, and it also defi nes the Corporation’s desired

outcomes for the sustainable development of the port, within the broader South East Queensland region.

The Land Use Plan 2007 will guide port planning until 2014 and, along with the Corporation’s Port Development Code 2007, has received industry recognition, winning the top prize in the Industrial Planning category at the Queensland Awards for Planning Excellence. The Corporation then went on to receive a National Planning Commendation at the Planning Institute of Australia National Awards for Planning Excellence.

The Corporation is now progressing with a new Land Use Plan for the Port of Bundaberg. Bundaberg Port Corporation became a wholly owned subsidiary of the Port of Brisbane Corporation in 2007.

Here for the FutureBusinesses at the Port of Brisbane currently contribute about $1.9 billion annually to the Queensland economy, and each year the value of the port’s international trade is worth in excess of $34.4 billion. The Corporation is dedicated to attracting trade growth through the commercial management of an effi cient and customer-focused port.

Ports


The main port complex at Fisherman Islands, Port of Brisbane

The Future Port Expansion Precinct

diversityd

With a turnover of $663.5 million for the 2007/08 financial year, BMD has held

true to its record of doubling revenue every four years since inception.

www.bmd.com.au

Dalrymple Bay Coal Terminal

QR Line DuplicationsBrisbane AirportTully Alliance

The BMD Group (BMD) is Australia’s

largest privately owned civil construction

and urban development organisation.

Key projects include: Value

Dalrymple Bay Coal Terminal Expansion, Mackay $111 million

Queensland Rail Line Duplications, Regional Queensland $100 million

SAFElink Alliance Ipswich Motorway Upgrade $700 million

Tully Alliance Bruce Highway Upgrade $170 million

Abbot Point Coal Terminal Expansion, Bowen $52 million

Mulgrave River Crossing Upgrade, Cairns $25 million

Northern Apron Surcharge Works, Brisbane Airport $6 million


Tully Alliance success for BMD Constructions BMD Constructions is a national civil construction company having grown very successfully from humble beginnings on Brisbane’s bayside in 1979. Still based at Manly, the company is part of the BMD Group – now Australia’s largest privately owned civil construction, consulting and urban development organisation.

The company has diverse civil construction experience across transport, urban development, water and wastewater, resource and energy and process engineering and heavy industry sectors.

Most importantly, BMD Constructions is proud to say that it retains its family company feel, and still operates today on the principles on which it was established.

Project Alliancing

Project Alliancing


The Tully AllianceA signifi cant project for the company is the recently completed and highly successful $170m Tully Alliance on the Bruce Highway from Corduroy Creek to Tully High School (including the Tully River Bridge and Murray Flat sections) alongside Alliance partners the Queensland Department of Main Roads, Maunsell AECOM and Albem.

The project involved realigning the highway to reduce susceptibility to fl ooding and improve overall safety and functionality. The scope included:

• 300,000m3 of embankment and preload;• 80,000m3 of paver placed road pavement; 75 major box culverts over 7 cells wide (averaging 3600 x 1800 RCBC);• 6 major bridges (32 spans in total with the largest at Tully River measuring 7 x 25m spans)• Approximately 15,000m3 of structural concrete (cast in-situ);• Planting of 42,000 native trees as compensatory habitat; and• Construction of fi sh passages, a cassowary culvert passage and a fauna overpass for mahogany gliders consisting of glider poles and aerial rope bridges.

Community Support, Engagement & the Environment Upon commencement of the project, the Alliance adopted BMD Construction’s culture of “supporting the local communities in which we operate” by engaging 80 plant hire and earth moving operators, 33 subcontractors and their staff and 41 material and service providers from the Tully region.

To continue this theme of support and as part of the extensive environmental program, the Tully Alliance coordinated a Community Tree Planting Day in conjunction with Planet Ark’s National Tree Day in August 2008. When originally planned, it was thought that a portion of the site would be planted as a result of the initiative, but with 90 volunteers showing up on the day, the entire area was planted within only a few hours.

In addition to local residents, the volunteers came from a range of local businesses and organisations in the area including the Tully Rugby League Club and the Tully Lions Club. The Girringun Traditional Owners from Cardwell and Mount Garnett were also on hand to assist with the planting.

Over 2,400 native trees and shrubs of some 45 different species were planted on the day to establish a riparian zone on the northern bank of the Tully River between the railway line and the Bruce Highway upgrade.

As the emblem of the former Cardwell Shire Council and the theme of the 2008 Gumboot Festival, an Illawarra Flame Tree was also planted following a special request from the Tully Chamber of Commerce.

All volunteers were presented with a certifi cate of appreciation for their support, a BBQ lunch cooked by

the Tully Lions Club and the opportunity to be some of the very fi rst to walk over the newly constructed Tully River Bridge.

The success of the event proved the extent to which the Alliance team had integrated within the local community and demonstrated the level of acceptance and support for the project by people in the area.

The Tully Alliance team was also presented with a High Commendation at the Keep Australia Beautiful Tidy Town Awards for the environmental objectives adopted throughout the project. These included compensatory replanting and habitat restoration in an area three times the size of that which had been disturbed, food source plantings to lead fauna away from the road, under-bridge fauna corridors, transplanting rare plant species and the restoration of degraded areas.

Award judges praised the partnership between the Alliance and the community which they described as “exemplary” among such partnerships. The team was also applauded for their extensive local consultation and investigations which resulted in well informed knowledge of environmental and social impacts as well as sensitivity to heritage sites.

People Development & Indigenous Employment OpportunitiesA commitment to development of staff was also evident through the Alliance’s training regime that at its peak saw 33 people undertaking certifi ed training, including 10 indigenous trainees and 5 school based apprentices. In total the project achieved approximately 80,000 accredited training hours which exceeded the training hours required under the 10% training policy by approximately 40%.

To recruit indigenous workers for the Alliance, BMD Constructions and Construction Skills Queensland offi cers worked together with the local indigenous community through the Girringun Aboriginal Corporation and staff from the Department of Employment and Industrial Relations. In addition, BMD Constructions, along with the Commonwealth’s Department of Education, Employment and Workplace Relations funded a full time mentor to support the trainees.

This program allowed for potential employees including unemployed indigenous locals to undertake nationally recognised traineeships in civil construction, beginning with employability skills and a Certifi cate 1 level course. Participants could then further these skills via Certifi cate II and III level courses.

As a result up to 30 indigenous employees were engaged at any one time on the Alliance. Feedback gained from the Girringun Aboriginal Corporation pointed to the success of the initiative, with many new employees commenting that their role in the Alliance made them feel like major contributors to the local community. It was also reported that this work provided a better quality of life for the indigenous

At Downer EDI Works we are committed to investing in and advancing in the Rail and Road Industry

Our objective is to become the leading and preferred supplier of infrastructure services to the owners of assets throughout Australasia.

Our proven team of talented and innovative professionals are committed to this.We offer our clients a comprehensive infrastructure service, our core skills in rail cover; track and civil, signalling, electrifi cation, and asset management. Our core skills in roads cover; maintenance and operations, pavement rehabilitation, asset management, engineering design and other specialist services.

Striving for infrastructure excellencewww.downerediworks.com

Relentlessly pursuing zero harm to our employees and the communities where we operate.

employees and their families along with increased self esteem and self worth.

Through negotiation with Tully State High School, the Tully Alliance also signed up fi ve students to a Certifi cate III in Civil Construction (Road Construction & Maintenance), and another student to a Certifi cate III in Civil Construction (Bridge Construction & Maintenance). One of these students completed school during the project and became a full time employee. The Alliance also made its resources available to all local schools for civil construction and administration work experience, with 9 Tully State High School students accessing the opportunity.

As a direct result of the commitment demonstrated from all parties exposed to the training regime, the Tully Alliance and its trainees achieved acclaim with the presentation of a number of prestigious training awards, as follows:• Boral Training and Industry Leaders Awards – BussQ Apprentice/Trainee Encouragement Award (Winner Martin Sutherland); • Coates Outstanding Commitment to Training and Skills Development Award (Finalist Ben Salleras);

• Construction Skills Queensland Training Excellence Awards - Employer Leader in Training – Over $5M Turnover (Highly Commended BMD Constructions for the Tully Alliance Project); • Stars of 2008 – Trainee of the Year (Winner Nathan LaFauci); • Stars of 2008 – Indigenous Trainee of the Year (Finalist Wason Muriata); • Stars of 2008 – School-Based Trainee of the Year (Finalist Danny Teitzel); and • Business Liaison Association Vocational Education & Training Awards (Northern Region) Employer of the Year (Winner Tully Alliance).

Overall AchievementsBMD Construction’s consistent dedication to safety was evidenced through the team’s exceptional Lost Time Injury free record of 700,000 hours over 604 working days.

Despite being located within the wettest region in Australia – with the project recording over 5,300mm of rainfall in total – the Tully Alliance was completed approximately 10 months ahead of schedule with all Key Performance Indicators (KPIs) met or exceeded.

Project Alliancing


downeredirail.com.au


Project Alliancing

Book breaks boundariesMaunsell AECOM is taking alliancing to the next level with a unique industry book


The alliancing team at Maunsell AECOM have gathered the industry’s collective wisdom, experience and lessons learned into a practical, case studies-based book that is the fi rst of its kind in Australia.

By balancing practical examples and relevant theory, Alliancing: a participant’s guide seeks to explain alliancing as a common form of service delivery on complex projects.

Alliancing is an approach that aims to create mutually benefi cial relationships, combining specialist expertise to produce outstanding outcomes for clients. Maunsell AECOM’s contribution to the uptake and growth of alliancing in Australia is signifi cant, having participated in 25 alliances since the delivery model was introduced in the late 1990s.

Its fi rst alliance was the Woodlawn Bioreactor Alliance followed soon after by the Lawrence Hargrave Drive Alliance. Today, Maunsell AECOM is a market leader in alliances and committed to working with owners to deliver value for money outcomes.

“We believed that the evolution of alliances in Australia was such that there were many lessons learned that could add value to current and planned alliances,” said Richard Morwood, Director of Alliances and Sustainable Infrastructure, who co-authored the book along with Ian Pitcher, Industry Director – Alliances; and Deborah Scott, Associate Director – Alliances.

“We saw an opportunity in the marketplace to bring a different perspective to assist owner and non-owner participants in alliancing and believed that the industry was ready for a new book”.

Launched in October 2008, the book is designed to:

• facilitate further development of alliancing• be a coaching tool by exploring case studies from the past 10 years• give back to the industry through imparting knowledge “without spin”• encourage the industry to continue to raise the bar in what is widely considered a valid and valuable project delivery method.

To accomplish their goal of delivering a book that would positively contribute to projects and participants in the alliance industry, the team sought viewpoints from owners (clients and their coaches), constructors, designers, and facilitators. Every effort was also made to involve industry participants through interviews and case studies.

There is enough theory in the book to lay the foundation for exploring the topic, but the critical focus was to go beyond the theory into the operational, experiential and learning. With this in mind, the team sought and documented experiences from a wide range of alliances, not just those including Maunsell AECOM, with more than 40 case studies included in the publication.

While the goal was to produce an alliancing manual accessible to readers of all knowledge levels, the book is specifi cally targeted at:

• contractors/consultants• specialist coaches and facilitators• public sector participants • alliance service industries such as legal, audit and insurance• owners, project partners and staff• university academics and students.

The alliancing team at Maunsell AECOM have

“A remarkable

achievement,”

Shane Doran, Queensland

Transport

The authors further employed a candid approach when evaluating past projects in an effort to provide the readers with practical answers and solutions to often complex development dilemmas.

The book received a high commendation in the Alliance Program of Excellence category at the 2008 AAA National Convention and feedback from clients and industry experts indicates it is being well received by the wider market:

“A remarkable achievement,” Shane Doran, Queensland Transport.

“As alliancing moves from theory to practice this publication provides new insights into alliancing based on the experiences of those who have been out there doing it in the real world,” Jim Ross, Alliancing specialist and Director, PCI Alliance Services.

“This book shares with a global audience Australia’s world leading best practices in infrastructure project and program alliances,” Alain Mignot, Alliancing Association of Australasia (AAA) Executive Director.

“I think you have done the industry a real service… an exceptional piece of knowledge management and positioning work for Maunsell AECOM,” John Davis, Southern Pacifi c Alliance Network (SPAN).

“It’s a great piece of work. It hits the mark, meets its objectives and is a valuable contribution to the fi eld,” Trevor Satour, Executive Director, Indigenous Success Australia.

The book has proved so popular that a second print run was ordered only weeks after the launch, with part proceeds going to the Cystic Fibrosis Association of Queensland and the Juvenile Diabetes Research Foundation.

To request copies, please email [email protected]

Project Alliancing


“It’s a great

piece of work.

It hits the

mark, meets its

objectives and

is a valuable

contribution to

the fi eld,”

John Davis,Southern Pacifi c Alliance Network (SPAN)

Maunsell AECOM’s alliancing experienceWoodlawn Bioreactor AllianceLawrence Hargrave Drive AllianceQueensland Fertiliser Services AllianceOlympic Dam Services AllianceWestern Nickel Services AllianceRoe Highway 7 AllianceInner Northern Busway AllianceWindsor Road AllianceParadise Road Interchange AllianceNorthern Rail AllianceIngham AllianceSouthern Link AllianceTully AllianceQR SEQIP (TrackStar) AllianceIpswich Motorway AllianceHume Highway AllianceKingsgrove to Revesby AllianceBallina Bypass AllianceGreat Northern Highway (Muchea to Wubin) AllianceGreat Northern Highway (Kimberley) AllianceWivenhoe to Cressbrook Pipeline AllianceQuakers Hill to Vineyard AllianceM2 Widening AllianceEastern Busway AllianceEnergy Australia Alliance

Project Alliancing

TODs, PODs, BODs and GODsSoon after confi rming their alliance in 2008, PB and the Curtin University Sustainable Policy Institute (CUSP) released their ground-breaking report into the cost of fringe versus urban development. The PB-CUSP report hit a nerve, with its analysis of the full costs to government, people and the environment of urban development. It caught the attention of decision makers, media and clients across the world. Here Professor Peter Newman of Curtin University and PB Director of Sustainability Darren Bilsborough, who lead this original research, consider what’s next for this unique research alliance.


The PB-CUSP Alliance began with the question of what defi nes a sustainable city, according to PB Director of Sustainability Darren Bilsborough. A sustainable city is usually understood to be one which minimises its inputs such as energy and water, and its waste outputs such as emissions, pollution, and heat. But along with these physical considerations, a sustainable city needs to be socially sustainable – a place where people enjoy living. This is a less tangible measure, but no less important.

PB recently developed a set of principles to defi ne sustainable infrastructure (see inset). These will provide a basis for future research projects for the PB-CUSP Alliance.

“Our urban development research contributed to the debate on how we should plan our cities to meet the challenge of climate change,” said Curtin University’s Professor Peter Newman. “The research results were reinforced by signifi cant world events – high fuel price rises, the tightening of the mortgage belt and fi nancial markets. People driving into work each day had already begun to question how they could personally sustain their lifestyle in outer metropolitan areas.“In the research we included economic, social and environmental modelling of land use and transport. We also put fi gures against health and environmental costs. Rather than just considering the economic cost of infrastructure, we are advocating a more holistic approach.”

Bilsborough reinforces this point. “The research provides an economic business case for the re-planning of our cities around higher density residential forms, connected by effi cient public transport. Our research arms decision makers with the basis to introduce

new policy and legislation to support TODs (Transit Oriented Development), PODs (Pedestrian Oriented Development), BODs (Bicycle Oriented Development) and GODs (Green Oriented Development).

“The PB-CUSP Alliance argument put forward in this research is a powerful one, but it is incomplete. For example, in the initial research we focussed on one small area of health – inactivity and obesity. Our next step is to investigate the wider health and productivity impacts associated with both urban redevelopment and fringe development – and to compare these impacts.

“We anticipate that this research will show TODs support not only wealthier cities, but also healthier ones,” Bilsborough said, referring to mental health costs for both adults (depression and isolation) and children (security and independence).

As well as mental health costs, physical health costs related to pollution and traffi c accidents will also be added to the equation. Another element is the increased productivity from reduced travel times and work effectiveness, which could be enabled during transit on buses and trains/trams.

In addition to this important work to expand the research on urban development, the PB-CUSP Alliance is pursuing questions about how transport systems can be adapted to cope with the effects of climate change.

The PB-CUSP Alliance is also evaluating two pieces of research which deal directly with the majority of PB’s principles for sustainable infrastructure. One piece relates to the ability to develop carbon neutral cities and lifestyles. This research is heavily focussed on alternative methodologies and technologies for meeting society’s energy needs.

Bilsborough describes the other research project, which is based around what Professor Newman has named the Photosynthetic City. This project builds on the important role our cities may play in meeting the challenge to revitalise our biodiversity, while also providing us with a source of food and improving the attractiveness of our cities into the future.

PB’s Director of Sustainability

Darren Bilsborough, left, and Professor Peter

Newman of Curtin University

Bilsborough asks us to imagine a city bathed in greenery, home to all manner of life forms – plant, animal and human – and a city which allows and encourages our basic need to be connected with nature. The Photosynthetic City is one that absorbs more carbon than it emits, breathes life into its surroundings, positively infl uences its local climate, and provides sustenance to its inhabitants. And this sustenance is both tangible and non-tangible.

While these ideas are not new, the PB-CUSP approach to sustainability-related research is quite different from that occurring elsewhere. “Each project must have a solid business case – one that is specifi cally targeted at creating value, for our organisations, our clients and society in general,” said Bilsborough.

“As fanciful as the vision of a Photosynthetic City sounds, it is fi rmly based in solving the problems we face today and will face in the future. Our research projects and resulting actions are intended to leave a lasting and positive legacy.”

Project Alliancing


PB principles of sustainable infrastructure

As a result of the PB-CUSP research, PB has developed eight sustainable infrastructure principles, including:

1. The redesign of (existing or renewal of) infrastructure in light of global climate change – specifi cally looking at how we design future infrastructure to be either “carbon neutral” or with a signifi cantly reduced carbon footprint, and how should our infrastructure be designed to take into account future climatic predictions?2. Economic, social and environmental modelling of land use and transportation – the modelling could be used for assessment of policies on emissions, energy use and infrastructure costs. For example life-cycle analysis, ecological footprinting, benefi t-cost analysis. 3. Sustainable materials selection – looking at the quality, durability, resource effi ciency and energy conservation (both embedded and operational) of project materials. 4. The protection of existing infrastructure from environmental degradation – for example the preservation, renewal, and longevity extension of materials and the relevance and applicability of systems.5. Moving to Zero Waste environments – for example looking at cradle to cradle design solutions, recycling and reuse.6. The proper economic evaluation of social infrastructure elements in society – including environmental, and physical and mental health benefi ts.7. The remediation of damaged environments – specifi cally focusing on damaged soils and water supplies, and the restitution of food production and capacity. 8. Revitalisation and restitution of ecology – the revitalisation of our ecological systems, and the restitution of ecological biodiversity.

PB-CUSP research compared the cost of inner-city style urban development with that of fringe or outer developments. It found we could save:

The government• $86 million (or approximately $85,000 per block) – to provide power, water, sewerage, schools, hospitals and local government services for fringe developments.

People• $250 million in transport costs over 50 years – as people in outer developments drive more frequently and own more cars.• $ 4.23 million in health costs over 50 years – as people in outer areas show a higher risk of obesity related to less physical activity.

The planet• 4,400 tons of greenhouse gas per 1,000 urban dwellings, which is roughly equal to the amount emitted from 200 homes – an estimated dollar value of approximately $19.32 million.

The opportunities for TODs, PODs, BODs and GODs are endless

Infrastructure today is a fast moving and complex

environment in which communities demand the highest

levels of engagement. Without it, projects are delayed,

dollars are lost and reputations damaged.

Phillips Group’s strategic communication approach has

delivered outstanding results across water, transport, energy,

urban renewal and ports projects across Australia for more

than 30 years.

» Reputation management

» Strategic communication

» Issues and risk management

» Community engagement

» Community relations

» Government relations

» Media relations and media training

» Crisis response training, exercises

and management

» Integrated marketing communication

» Event management

Contact: Penny Townley

Director Infrastructure and Environment

T +61 7 3230 5000 E [email protected]

Brisbane • Sydney • Canberra

www.phillipsgroup.com.au People. Strategy. Results.

Get engagedand build your reputation

We effectively engage communities and We effectively engage communities and build reputation in partnership with you.build reputation in partnership with you.

Project Alliancing


Measuring business success and enhancing your reputationWithout regular evaluation how will you know if you are getting value for money and outstanding performance outcomes?

Within infrastructure Alliances, a communication team aims to minimise risks, build relationships with key stakeholders and manage the Alliance partners and project’s reputation. While formerly an optional extra in the 1990s, community and stakeholder management is now unprecedented in its importance, and is a fundamental part of the pain-gain share fi nancial agreements that bind Alliance partners. As the performance of a communication team has fi nancial implications for the entire alliance, it is imperative key communication parameters are established from a project’s outset and accurately and regularly measured until the project’s conclusion.

Phillips Group is reducing the uncertainty facing Alliance project managers by using professional research agencies rather than industry peer reviewers to assess its performance against a rigorous key performance indicator (KPI) framework. The KPI framework incorporates the unique communication needs of each project. The random sampling by the auditor of stakeholders and residents in the study or project area to evaluate performance has set a new communication evaluation benchmark. This robust, transparent approach ensures Alliances receive best results from communication teams and clearly demonstrates performance, across all KPIs, to the Alliance Leadership Team.

Using this strategic evaluation approach, Phillips Group has recently delivered outstanding communication outcomes for two of Queensland’s largest and most signifi cant infrastructure alliance driven projects – the $2.5 billion Western Corridor Recycled Water Project and the $543 million Tugun Bypass.

The Western Corridor Recycled Water Project is Australia’s largest recycled water project and will deliver up to 232 megalitres of purifi ed recycled water daily for use in power stations, industry, agriculture and, when combined storage levels fall below 40 per cent, the Wivenhoe Dam. The project involved fi ve alliances comprising 16 of the world’s leading engineering, water and construction management organisations. The Western Corridor Recycled Water Project was delivered in a period of great water supply uncertainty and mounting political pressure.

The $543 million Tugun Bypass – built by Pacifi c Link Alliance and comprising Abigroup, SMEC and the Department of Main Roads – is a seven-kilometre, four-lane, dual carriageway motorway operational from mid 2008 after two years of construction. Built adjacent to an operational airport, in an alignment covering

three government jurisdictions, the Tugun Bypass raised signifi cant social and environmental issues. Both projects were delivered in complex and challenging environments requiring sustained high performance from a team of communication specialists.

Ensuring quality To ensure appropriate evaluation mechanisms, Phillips Group worked with Alliance and Executive Leadership Teams to establish specifi c and measurable communication priorities and accompanying KPIs. On every occasion, Phillips Group worked with Alliances to exceed ‘business as usual’ parameters and deliver outstanding performance to satisfy the needs of all stakeholders.

At the Western Corridor Recycled Water Project, where Phillips Group was responsible for issues, reputation and media management, external stakeholder management, corporate collateral and internal communication the KPIs supported these functions. Within Pacifi cLink Alliance delivering the Tugun Bypass, Phillips Group managed community relations and KPIs included complaint/enquiry recording and resolution, community engagement and internal team awareness and commitment.

Once KPIs were established, an independent research company, not an industry peer organisation, conducted benchmark audits and ongoing performance audits at six monthly intervals. These KPI audits included face-to-face and random telephone interviews with residents in the study area and major stakeholders, process reviews and desktop reviews of tracking systems and communication materials.

Phillips Group Director of Infrastructure and Environment, Penny Townley, said the KPI audits ensured the best communication services were provided.

“Measuring performance is integral to ensuring successful Alliance outcomes, enhancing reputation and delivering value for money,” she said.

“KPIs must be independently measured at the beginning, during and at the conclusion of a project. It is critical this evaluation process is established correctly from the outset.

“We take evaluation seriously and recommend external auditing by an independent third party, rather than a review by industry peers.”

This external review process was demonstrated with the Tugun Bypass and the Western Corridor Recycled Water Project.

“With the Tugun Bypass, we put our reputation on the line and made our entire communication program completely transparent to auditors and the Alliance Leadership Team. To assess the effectiveness of our community relations team, the independent auditors made calls to random program stakeholders to gain their assessment of the communication program,” she said.

“The external audit rated our community relations team as ‘outstanding’, meaning all internal and external stakeholders considered the communication team’s efforts exceeded ‘Business as Usual’ performance measures.

“From an Alliance perspective, the impartial audits independently verifi ed the standard of work delivered.

“From a company perspective, the audits provide us with certainty that our embedded teams performed to the highest standard.

“And from a team performance, the excellent results really boosted their confi dence and raised morale.”

Ms Townley says Phillips Group’s success in Alliance environments is due to the strategies applied by highly skilled employees supported by an ongoing training program.

“We hire exceptional communication personnel and have an excellent professional development program.

“We also understand the need to use precise evaluation tools to assess performance.”

Contributing to sustainabilityMs Townley said Phillips Group understanding of KPI deliverables was also being used to benefi t the national infrastructure industry. Phillips Group is closely involved with the Australian Green Infrastructure Council (AGIC), a national not-for-profi t industry association formed to ensure more sustainable infrastructure in Australia.

“We have undertaken signifi cant pro-bono work with AGIC to assist in the development of a viable

national sustainability ratings scheme for Australian infrastructure,” she said.

“This tool will promote the highest standards of sustainability performance by setting clear benchmarks and encouraging continual improvement in all stages of an infrastructure project.

The ratings tool will assess the sustainability of infrastructure projects across procurement, design, construction, operation and decommissioning. Proposed categories include project management and governance; economic performance; using resources; emissions, pollution and waste; biodiversity; people and place; and workforce. Each category will contain a series of scored questions and performance criteria to determine an overall sustainability rating.

“The lessons learnt in community and stakeholder management evaluation on major infrastructure jobs can contribute to the sustainability assessment rating scheme within the people and place category,” she said.

“When completed, the AGIC sustainability tool will provide an independently certifi ed practical checklist of sustainability risks, opportunities and obligations for all parties involved in an infrastructure project.

“Just as communication KPIs assess all categories of communication to ensure quality, the AGIC sustainability tool will assess all categories of infrastructure delivery to ensure sustainability.”

Phillips Group’s relationship with AGIC is testament to its commitment to sustainable infrastructure.

“It’s imperative that private enterprise and government support this initiative, because sustainable infrastructure will deliver social, economic and environmental benefi ts, ensuring ongoing growth and prosperity throughout Queensland and Australia,” Ms Townley said.

With offi ces in Brisbane and Sydney and affi liate offi ces interstate, Phillips Group is one of Australia’s most successful communication consultancies having won more than 150 industry awards. For further information about its Alliancing capabilities and experience, please contact Penny Townley at [email protected] or phone (07) 3230 5000.

Project Alliancing


The external audit rated our

community relations team as

‘outstanding’, meaning all

internal and external stakeholders

considered the communication

team’s efforts exceeded ‘Business as

Usual’ performance measures.

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Project Alliancing

Surveillance within Alliance ProjectsAlliancing, as a form of project delivery, is proving increasingly popular across Queensland. Critical to this delivery model is the requirement for the designer / contractor to take responsibility for the quality of their work under typical quality assurance principles. Given the integrated nature of these arrangements, and the “self management” principles of quality assurance, to what extent is there still a need to ensure independently that project scope and technical requirement obligations are met, and how can this be best achieved?


The collaborative nature of the alliance model challenges traditional thinking on the mechanisms by which an owner might arrange surveillance of the designer and contractors work. Traditionally, an owner would arrange some form of oversight of construction to ensure the designer and / or the contractor is delivering the required scope of work to the required specifi cation. Experience demonstrates that an oversight role is a major driver of on time and reliable delivery within the highly collaborate alliance delivery approach. While project surveillance in alliancing occurs via a number of different methods with varying scopes of involvement of the verifi er in surveillance activities, it still plays a critical role in project delivery.

URS is currently involved in numerous transport projects delivered via alliances across Australia and New Zealand. It is interesting to note that despite similar circumstances quite different surveillance models are being considered, and to compare how these work.

In Queensland, the Department of Main Roads currently favours appointment of an independent Alliance Verifi er, reporting directly to Main Roads and outside the alliance team. For example, as the Alliance Verifi er on the Ipswich Motorway URS’ responsibilities include reviewing design packages for compliance with scope and technical specifi cation requirements, construction monitoring and verifi cation and audits of the alliances’ quality assurance system compliance.

The RTA in New South Wales uses a similar arrangement, where the alliance verifi cation requires suffi cient surveillance resources to review and sign off on key hold points and attend to non conformance issues on behalf of the owner.

In Auckland, the Northern Gateway Alliance has, within the alliance structure, a separate surveillance team responsible for oversight and quality. Completely embedded and integrated within the alliance, this team reports directly to the Alliance Project Manager and has responsibility for signoff on hold points and non conformance dispositions. There is no independent oversight from the owner.

Victoria has a different model again. In our capacity as Design and Construction Verifi cation Engineer

for part of the Monash-CityLink-West Gate Freeway Upgrade Project, URS provides “general overview and reasonable checking” for design compliance with scope and technical specifi cations. Construction surveillance however, is limited to reviewing the alliance surveillance systems, methods and issues, with only a very occasional presence on site.

In South Australia the recently started Northern Expressway project, whilst a design and construction project, does include some alliancing aspects including gainshare/painshare on key result area (KRA) performance. Here, the owner has established a site surveillance team of their own, but included within this structure a “construction verifi cation” team, similar to what might be referred to as an “owners engineer” role.

So is there a right model?From our experience, we have seen they all can be made to work. What we do note, however, is that quality outcomes on projects require quality to be clearly recognized as a valued principle within the alliance. It is also important to ensure well considered key performance indicators (KPI) are put in place. It is also clear to us that quality can be compromised by the emphasis put on timely delivery, and despite the ideals of a self managed QA system, a strong surveillance role is certainly required to ensure that scope of work and technical specifi cation requirements are met during the design and construction of alliance projects.

URS is always willing to provide advice to our clients as to the most appropriate model and methods for their project. The key to our success in verifi cation services lies in our ability to provide senior in-house experienced professionals covering the gamut of disciplines involved in large complex transport infrastructure projects. In addition URS has a strong quality assurance ethic and signifi cant experience in applying comprehensive project review. URS challenges and supports project procedures as needed and ensures the effi cient turnover of documentation to allow on time project completion. Finally, URS understands the need to work with the contracting team to add value to the project and provides a non- adversarial attitude to verifi cation, while maintaining strict independence and the ability to stand fi rm when standards are not reached.

Thao, how do you see the state of play for upcoming infrastructure projects in light of the current global economy?It is important to realise that despite the current state of the fi nancial market, quality projects can still attract substantial levels of private fi nancing. These projects are however having to compete with a range of secondary sales as companies seek to shore up their balance sheets and improve liquidity. Governments and their advisers will need to ensure they position the risk profi le of the upcoming projects in order to attract suffi cient interest and competition.

Clearly if liquidity does not improve or tightens further, governments may have to provide more support for these projects and take a long term view that markets will improve such that any temporary support will not be required in the long run.

What becomes really important when times are tough economically, is the team delivering the infrastructure. When the economy is good, there is room for mistakes, but during diffi cult times it becomes crucial to have people with extensive infrastructure experience fi nancing and delivering the project.

What are the key factors to the ongoing successful delivery of infrastructure in today’s environment?I believe an experienced team that can be fl exible in its approach and react to changing market conditions is key. The team must also incorporate a broad spectrum of skills under a common leadership in order to drive an optimal outcome. Too often we see consortiums that are dominated by one party fail, as there is insuffi cient tension and interplay of ideas from different angles.

In terms of tender assessments, government needs to take the whole package into consideration. It is important that they are not purely guided by their bottom line contribution, to the detriment of the ongoing sustainability of the piece of infrastructure. The tender processes also need to enable government to react to changing market conditions. Probity considerations sometimes restrict an optimal outcome.

We’ve seen a number of signifi cant companies buckle under global fi nancial pressure, what is Leighton Contractors doing to avoid a similar fate?In this environment, banks and equity investors are allocating resources and capital to projects where they have existing relationships with sponsors. Leighton

Contractors’ specialised Infrastructure Investment division has been developing our core relationships over many years and many projects and we are now seeing the benefi ts of those long-standing relationships.

In addition, the current environment can be considered an opportunity, and we have already demonstrated we can take a distressed asset and turn it around. Cross City Tunnel is a good example of this. We implemented a range of measures to rationalise the business, and enable management to focus on the key value drivers of the business. This has translated into a much leaner organisation that is more in touch with its customer base and key stakeholders such as the RTA and local councils.

What’s your strategy for raising equity in a stressed fi nancial market?We are currently in discussions with international fi nanciers who, despite the economic downturn, are interested in providing equity and debt for quality infrastructure projects in Australia, such as Brisbane’s Northern Link and the Sunshine Coast University Hospital.

So it’s important to note that there is money out there for projects, it’s just that projects have to stand out from a risk/reward perspective before fi nanciers will devote time and resources to securing them.

What’s your industry outlook for the next 12 months?What we’re currently experiencing, in a sense, is good for infrastructure in Australia as the key players must now take a more considered approach to projects and how they will be fi nanced and delivered. The industry needs to think cleverly and provide innovative solutions to the challenges that currently face the economy and work with this to deliver infrastructure that meets the needs of the community and the economy.

I think the industry will be stronger in the long term because of it and most importantly, government will listen and heed the warnings by placing more scrutiny around the quality of the projects when determining which ones will eventuate.

Thao Oakey has played a key role in a number of projects sponsored by Leighton Contractors, including the successful bid for the concession to build, own, operate and transfer the $3 billion Clem7 (previously North-South Bypass Tunnel) in Brisbane.

She has extensive experience arranging equity and debt fi nance, providing fi nancial advice on acquisitions and advising clients across a range of industries.

Thao Oakey

Q&

A

Perspectives from Thao OakeyThao Oakey, Project Director of Infrastructure Investment at Leighton Contractors shares her thoughts on the challenges surrounding raising private fi nance and delivering infrastructure in the current economic climate.


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