construction week - issue 317
DESCRIPTION
Construction Week - Issue 317 - ITP BusinessTRANSCRIPT
INSIDENEWSExperts say lack of transparency is hampering recoveryPAGE 9
COMMENTFrost & Sullivan sheds light on construction chemicals in the GCCPAGE 14
ALUMINIUMIs history repeating itself? CW investigates the rise in pricesPAGE 20
SECTOR FOCUSA look at the transport infrastructure market across the regionPAGE 26
SAUDI ARABIA BAHRAIN UNITED ARAB EMIRATES QATAR OMAN KUWAIT
ConstructionWEEK NEWS, ANALYSIS, PROJECTS,
TENDERS, CLASSIFIEDS, ANDJOBS IN THE MIDDLE EAST
APR 17-23, 2010 [317]CONSTRUCTIONWEEKONLINE.COMAn ITP Business Publication | Licensed by Dubai Media City
SPECIAL INVESTIGATION
IS BAGHDAD REALLY WORTH THE TROUBLE? CW SEES FIRST HAND WHAT IT TAKES TO DO BUSINESS ON THE GROUND IN IRAQ’S CAPITAL
MADINAH
CITY FOCUSpage 28
chemicals in the GCCPAGE 14
CONTENTS
12 NEWS IN BRIEFHighlights of the week.
14 COMMENTFrost & Sullivan’s Rahul Khare sheds some light on the construction chemicals market in the GCC.
REGULARS2 ONLINE4 MAIL
FRONT9 TRANSPARENCY VITAL FOR RECOVERYExperts say lack of transparency will hamper recovery of the construction industry in the region.
11 EMAAR MISR AWARDS US $54.5 MILLION MARASSI CONTRACTOrascom Construction Industries has won a US $54.5 million contract to work on homes within Emaar Misr’s Marassi development in northern Egypt.
FEATURES16 TOP SEVENCW identifi es some of the most extraordinary cranes ever built.
18 ANALYSISIs doing business in Iraq a practical possibility? CW visited Baghdad.
20 SPECIAL REPORTIs history repeating itself when it comes to the price of aluminium? CW fi nds out.
APRIL 17-23, 2010 | ISSUE 317
1APRIL 17–23, 2010 CONSTRUCTION WEEK
DIRECTORY26 SECTOR FOCUS28 CITY FOCUS30 SPECIALIST SERVICES
BACK32 DIALOGUEAbu Dhabi’s department of Municipal Affairs chairman Rashed Mubarak Al Hajeri discusses his plans for Cityscape 2010, which will take place in the UAE capital this week.
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CONSTRUCTION WEEK APRIL 17-23, 20102
FEATURES
Design
SAUDI SUCCESSESSaudi still presents plenty of oppor-tunity for interior designers
Designs for Denmark’s fi rst purpose-built grand mosque have been released by architects Bjarke Ingels Group (BIG) as the local council gave approval to the development plan. Construction of the mosque is expected to start within a year. The 4500m2 mosque incorporates a prayer hall for 3000 people, shops, conference facilities, a gallery, an auditorium and an Islamic library. “Our purpose was to design a Danish mosque as an interpretation of the Islamic architectural and cultural tradition adjusted to the Danish context – the same elements that we know from traditional mosques in the Arabic world, adapted to Danish climate conditions and lighting,” said founder and creative director, of BIG, Bjarke Ingels.
To read more visit www.ConstructionWeekOnline.com
IN PICTURES: GRAND MOSQUE DESIGNSFOR DENMARK
ONLINEwww.ConstructionWEEKonline.com
MOST POPULARTHE 10 GREATEST ENGINEERING FEATS OF THE DECADESIX PROJECTS THAT DIDN’T MAKE IT: PART IIIPAD TO LAUNCH NEW ‘APP’ FOR BUILDING DESIGNERSGREEN BUILDING TECHNOLOGY TO DOUBLE IN 10 YEARSGRAND MOSQUE DESIGNS FOR DENMARK
TO VOTE IN THIS WEEK’S SPOT POLL GO TOwww.ConstructionWEEKonline.com
HAVE YOUR SAYBURJ OBSERVATION DECK TICKET PRICESIs it fair for ‘At The Top’ to charge as much as it does for a viewing?
JOBS OF THE WEEKERP Architect, Dubai, UAEMechanical engineer, Abu Dhabi, UAEJunior estimator, Doha, Qatar
ONLINE POLLHAVE YOU BEEN PAID BY NAKHEEL?
100%Cheque? What cheques?
0%Cheque in the bank
0%Cheque in the mail
MOST POPULAR
Projects
10 GREAT FEATS OF ENGINEERINGA collection of record breakers from the last decade
Analysis
GOINGFOR GOLDExperts explain what makes Mirdif City Centre a sustainable place
City Update
BAGHDADA look at thelatest progress in the city and new developments
mmmmmmmm
CONSTRUCTION WEEK APRIL 17–23, 20104
RE: BUILD SAFE CHAIRMAN REACTS TO TRENCHING FATALITYI have been retired two years after 40 in the industry and 25 of them in the Middle East. It does not surprise me that such fatalities still occur until the MANAGEMENT of the company is held responsible by the authorities (...and I don’t mean arrest
and imprison the poor safety offi cer who has no power anyhow).DAVID HADFIELD
RE: NAKHEEL SHAKES UP ITS MANAGEMENTCareful about the wording: Are you sure the $8 billion will pay contractors debts or Nakheel’s debts?CHRISTOPHER
WRITE TO THE EDITOR Please address your letters to: Post, Construction Week, PO Box 500024, Dubai, UAE or email [email protected]. Please provide your full name and address, stating clearly if you do not wish us to print them. Alternatively log on to www.ConstructionWEEKonline.com and air your views on any one of a number of the latest Middle East business articles.
The opinions expressed in this section are of particular individuals and are in no way a refl ection of the publisher’s views.
Registered at Dubai Media CityITP Business PublishingPO Box 500024, Dubai, United Arab EmiratesTEL +971 4 210 8000 FAX +971 4 210 8080Offices in Dubai, Manama, Mumbai & London
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RE: THE CARROT AND THE STICK As ‘The carrot and the stick’ highlights, regulatory requirement and authority-led incentives are critical to lowering the environmental impact of construction in the GCC. However, it is important to underline that the most dramatic, true and lasting change will only happen when construction businesses are driving the industry’s sustainability agenda themselves. So what will it take for this to happen? Sustainable construction must be made convenient and reliable, and must offer commercial benefi ts over the less sustainable option. As a producer of secondary lightweight aggregate, our experience tells us that a ‘green’ material will never be widely used if that is its only selling point. Without the solutions our product offers to design or engineering challenges and the project cost and time savings it enables, sales would, without doubt, be much lower. Materials such as this offer the kind of tried-
and-tested ‘quick win’ that businesses can adopt readily and use to drive the industry towards a ‘greener’ future. Putting the carrot and the stick in place is crucial, yes; but change for sustainability will be most effective when the agenda is driven by the industry itself for the commercial advantages it offers. In this climate, surely that is carrot enough. LYTAG MANAGING DIRECTOR ANDY DOEL
MOST INFLUENTIALSUPPLIERS
IN CONSTRUCTIONFrom the Burj Khalifa to Meydan, and Yas Marina to the Atlantis, they are the companies that have changed the construction industry forever. Supplying the very best of ceramics, tiles etc… these are the companies that have put the GCC on the world stage.
On 24th April 2010, Construction Week will publish the defi nite construction suppliers list – their
incredible work, the projects they have contributed and their impact on the industry.
You have a chance to be involved in this list by contributing to a half page editorial box out for your company. The editorial copy deadline is the 18th April for the box out and the advertising copy deadline is the 20th April.
Please contact me immediately to grow your business across the region
Jason Bowman, Publishing Director T: +971 4 210 8351 E: [email protected]
ConstructionWEEK
CONSTRUCTION WEEK APRIL 17–23, 20106
FOREWORDChange is inevitable. And the time for the inevitable is here.
With a heavy heart, I write my last column as the editor of Construction Week – a regional, home-grown magazine which, in its own right, has become a runaway success story.
It has been a long and exciting journey, much of which has been fi lled with personal threats, hate-mail, car-chases (no, i’m not joking!) and even questions from the authorities.
But as the magazine grew and our presence became a force to reckon with, those threats changed to gentlemanly conversations, the hate-mail to compliments and the car-chases, well … into a couple of stretched limo-rides to interview top local and global fi gures in the construction industry.
Thinking back, my fi rst issue of the magazine in January 2005 was number 52; it was just over a year old and relatively unknown. But fi ve years and 265 issues later, it is now one of the most recognised, and more importantly, credible magazines in the Middle East.
Internationally, it is not unheard-of either. From the New York Times and Canada’s La Presse to the UK’s Daily Mail and the BBC, the award-winning magazine’s news desk has been the last hope for many renowned journalists looking to stand up that ‘impossible’ story. And we always helped – for the greater good, which is evident in many changes you now see in the region, including better worker rights and higher standards of health and safety on construction sites.
But, all of this would not have been possible without the support of the industry – your support through sponsorships and advertising, while allowing us to hold on to our credibility, your letters, comments and most of all, your criticisms. CW is you, and you are CW. The magazine’s success is yours and your success is refl ected through it.
The construction industry in the Middle East has survived one of the worst economic downturns and also enjoyed one of the biggest booms. I have no doubt it will pull through these times to grow even bigger and better.
Change is all around us. And with Construction Week and the industry it serves, working together, a positive change is inevitable.
Signing out for the last time, I wish you all the best!
GOODBYE
CONRAD EGBERT [email protected]
“IT HAS BEEN A LONG AND EXCITING JOURNEY, MUCH OF WHICH HAS BEEN FILLED WITH PERSONAL THREATS, HATE-MAIL, CAR-CHASES AND EVEN QUESTIONS FROM THE AUTHORITIES.”
New contact details I have been appointed Group Editor for ITP Publishing’s India offi ce in Mumbai, to help grow the company brand there. India’s economic growth for 2010-2011 is predicted to be as high as 8% by the International Monetary Fund. Just to put things in perspective – the UAE’s predicted growth rate is between 1% and 3% for 2010. I can be reached at my email address which will remain the same at [email protected]. Website www.itp.com.
9APRIL 17-23, 2010 CONSTRUCTION WEEK
The construction and real estate indus-tries need to drastically improve their trans-parency to prevent international investors shying away from the Middle East, say directors of two of Abu Dhabi’s upcom-ing trade shows.
Graham Wood, group director of CityBuild Abu Dhabi, and Chris Speller, group director of Cityscape Abu Dhabi told Construction Week that clarity over project payments and real estate funds was sorely needed for the region to bounce back.
“Developers and contractors have learned a great deal over the past fi ve years,” said Wood. “Indeed investors have too - the story of of-plan sales is of two extremes.”
“However, looking forward, I think pay-ment terms will hold the key to managing risk combined with legally binding con-tracts that can be enforced. One of the early features of the slowdown was the lack of cash fl ow due to late or non–payment. That
FRONT
TRANSPARENCY VITAL FOR RECOVERY SAY EXPERTSBy Ben Roberts
situation had a knock-on effect and exas-perated the situation.”
Transparency was one of four key areas that analysts were looking at, he added. “The federal government is tackling regulation that will lead to greater transparency, which in turn, should help investor confi dence,” he said. “When investors gain confi dence, it will have a positive effect on the market and therefore reduce risk.”
Speller added that addressing concerns over the transparency of real estate funds was paramount, following a report by a Swiss bank that criticised the lack of pub-licly available data.
“For the real estate investment commu-nity these have been diffi cult times so it is not surprising that the combined issues of transparency, regulation and project delivery are among the most important concerns, as strategies are planned for the future,” he said.
GRAHAM WOOD SAYS TRANSPARENCY IS AMONG THE TOP FOUR KEY AREAS ANALYSTS LOOK AT WHEN DECIDING A MARKET’S POTENTIAL.
>News 11
>Highlights 12
>Comment 14
>The Best 7 Cranes 16
>Rising aluminium prices: is history repeating itself ? 20
He added that investment strategies, among other topics, including the viability of Middle East real estate investment trusts (Reits), including Shariah-compliant vehicles, would be addressed at the conference.
“We will be looking at what long-term institutional investors think about Abu Dhabi and the regional markets and how to incentivise them to enter the market,” he said.
Issuer: Public Works Authority
Tender No: PWA/GTC/045/09-10
Description: Reconstruction of the
Najma Road extension.
Closes: April 20
Fees: QR7000
Contact: Contract Department, Public
Works Authority
TENDER WATCH QATAR
WWW.CONSTRUCTIONWEEKONLINE.COM/CONFERENCES
LIMITED VIP INVITES AVAILABLE FOR MAJOR CONTRACTORS AND
DEVELOPERS ACTIVE IN THE KINGDOM
To attend the conference please contact:[email protected]
MEDIA PARTNERS
Featuring Case Study Presentations on:
King Abdullah Finacial District (KAFD) • King Abdullah University of Science and Technology (KAUST) • Al Wasl Development • Princess
Noura University • North Haram development
Presentations from senior representatives the industry players on the Saudi market leading the sustainability drive in Saudi Arabia and the Middle East, including:
Saudi Oger • Bin Ladin Group • Saudi Tabreed • WSP • Buro Happold • FXFOWLE • LIMITLESS • Al-Shamiyah Urban Dev. Co
Special Features at the conference include:• Market Forecast by Jones Lang La Salle
• Panel & Q&A session with leading lawyers in the GCC
•A legal perspective on doing business in Saudi Arabia
For sponsorship opportunities please contact:Jason Bowman, tel +971 4 210 8351, email [email protected]
SILVER SPONSORS ENDORSER EXHIBITOR
11OCTOBER 17–23, 2009 CONSTRUCTION WEEK
FRONT
Iron ore giant Rio Tinto has added its name to the shortlist of mining heavyweights push-ing through pricing contract reform, which has seen the price of steel for local suppliers leap in recent weeks.
The London-based company, the world’s second biggest miner, said in a statement to the Australian Stock Exchange that it has entered talks with customers to switch from annual to quarterly pricing.
It believes the system is better than ‘bench-mark’ pricing that only works if it refl ects market fundamentals. However, speculation on iron ore pricing – which has already led to the arrest of four Rio Tinto employees in a Chinese court for industrial espionage and bribery – saw spot prices increase far above their benchmark rates.
RIO TINTO JOINS STEEL CONTRACT REFORM AS LOCAL COSTS MOUNTBy Ben Roberts
It follows similar moves by Anglo-Aus-tralian rival BHP Billiton and Brazilian fi rm, Vale, to negotiate business based on shorter-term contracts and capitalise on the peak in demand for iron ore.
Higher prices have led to the inevitable knock-on effect on steel product producers and their customers in construction.
EMAAR MISR AWARDS US $54.5 MILLION MARASSI CONTRACTBy Sarah Blackman
Orascom Construction Industries (OCI) has won a US $54.5 million (EGP300 mil-lion) contract to work on homes within Emaar Misr’s Marassi development in northern Egypt.
OCI will execute the fi nishing works includ-ing interiors and exteriors of Catania homes within the 6.24 million m2 tourist resort.
Once complete the resort will feature up to 3000 hotel rooms, a marina, golf course and health care facilities. Speaking to Construc-tionWeekOnline.com Emaar Misr general manager Hazem Ashry said: “In Marassi, Emaar Misr has already marked a milestone with the completion of the beach clubhouse in the summer of 2009.”
“The fi rst homes in the development will
EMAAR MISRGENERAL MANAGERHAZEM ASHRY.
Issuer: Egyptian Electricity Transmission
Company
Description: Implementation of two
overhead power transmission lines.
Closes: April 27
Fees: EP 10,966
Bond: EP 7,677,320
Contact: 5 Sixth October Street
El Mounib, Giza
TENDER WATCH EGYPT
Mr Govia of Dubai-based Emirates Build-mat, whose subsidiary company Euro Gulf Steel Industries sources scrap both locally and internationally to produce mild steel products, said that raw material prices had been kept relatively low until recent months due to a lack of local demand. He added that steel prices are also affected by the wider landscape of the world’s biggest producers, such as India’s 20% export duty.
“We have to accept the fact that steel prices will stay high for some time. Here it can be as much as AED 3000 per tonne, where in China it is between AED 690 and AED 720.”
He is also phlegmatic about the wider indus-try for steel products. “I don’t believe in 2010 people will anticipate any growth, or at least the growth should be no more than 1% to 1.5%.”
be handed over this year.”Meanwhile, Emaar Misr’s other develop-
ments, Uptown Cairo and Mivida, are pro-gressing on schedule.
AED 3000COST PER TONNE THAT STEEL HAS RISEN TO IN
THE MIDDLE EAST
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CAREER OPPORTUNITY
CONSTRUCTION WEEK APRIL 17–23, 201012
FRONT
HIGHLIGHTS
TechnologyIPAD TO LAUNCH NEW ‘APP’ FOR BUILDING DESIGNERSLast week, Ian Keough, senior technical designer at international engineering consultancy Buro Happold, launched the ‘goBIM’ App. The tool enables Building Information Modeling (BIM) – the generation and manage-ment of building data using three dimensional, real time, dynamic building model-ing software – to be viewed on iPhones and therefore in remote locations includ-ing on site. While there are several Apps that enable users to view three dimensional models, goBIM will be the fi rst iPad-compatible App to enable users to navigate mod-els and review data tagged to model elements such as materials, manufacturer information and volumetric information.
BusinessBUOYANT EMAAR LEADS STOCK MARKET TRADINGEmaar has been the most traded stock by value and vol-ume on the Dubai Financial Market Index over the last
week, as confi dence in the group grows further follow-ing its debt rollover at the beginning of the month. The developer’s shares, last week, rose almost 7% to 4.06 from their previous price of 3.8. The last seven days represent more than 8000 trades at a value of US $362 million, outstripping rival Arabtec Holdings (5391 trades at a value of $167 million for the week) and Dubai Financial Markets (7082 trades at an $222 million value), which both closed up last week at 2.7 and 1.9 respectively.
ContractsFIRM WINS HIGH-POWER GENSET DISTRIBUTIONA deal has been signed be-tween local fi rm Al Futtaim Auto and Machinery Com-pany (Famco) and generator maker Himoinsa.
The agreement will see Famco become the exclusive dealer of the Spanish brand in the UAE. “The market for diesel generators in the UAE is very promising, and as a major distributor we hope to build on Himoinsa’s global reputation as a recognised leader in the generator indus-
try,” said Paul Floyd, manag-ing director, Famco.
Projects‘UPSTART’ SOLAR ASSOCIATION IN CREATIONAn ‘upstart’ association for solar power providers in con-struction is currently in its earliest stages of creation. An industry source told CW that some of the leading product developers were involved in the fi rst fi ve meetings, including representatives of Sole UAE Solar Systems and Environmena. It will be the fi rst multi-fi rm association for solar power in the region.
BusinessEMAAR ‘VERY COMFORTABLE’ AFTER DEBT ROLL-OVEREmaar Properties has an-nounced it will roll over its US $1.32 billion (AED4.84 billion) debts into long-term project funding as fears recede of a repeat of the bail-out needed for stricken developer Nakheel. In a statement to the newswires the company said it was ‘very comfortable’ with its US $1.22 billion loans and pointed to
its debt-equity ratio, which is one of the best in the sector. The successful debt conver-sion indicates that it will not need to divest any projects, which includes Burj Khalifa, the world’s tallest building, to shore up its balance sheet in a run-up to its annual general meeting on April 29.
ProjectsDUCAB HV PLANT TO BE UP AND RUNNING BY EARLY 2011The new Ducab HV Cable Systems facility being built on a 22,000m2 site in Jebel Ali will start producing its fi rst high-voltage cable by early 2011, says CEO Jon Vail.
The total investment in the new facility is US $136 million (AED500 million), including working capital. Ducab HV is a joint venture between Ducab, Dewa and Adwea. The groundbreaking cer-emony was held in November 2009. Khansaheb is the main contractor while MACAir is in charge of MEP works. Dutco Balfour Beatty has won the piling contract while the new facility was designed by Holfords, the architectural division of Hyder Consulting.
The value of the ‘green building’ industry in
2020 according to Lux Research, a New York-based consultancy for emerging technology.
NEWS IN NUMBERS
The starting price for a 16GB iPad tablet,
which was launched in the UAE last week.
US $1225
The amount of new homes that are planned
in Saudi Arabia once the new mortgage law
is enacted.
1.5 million
The size of Denmark’s fi rst grand mosque
that has been designed by architects Bjarke
Ingels Group.
4500m2US $227billion
T
w
ened ke
APRIL 17–23, 2010 CONSTRUCTION WEEK14
COMMENT> For the latest news and comments log on to www.ConstructionWEEKonline.com/comment
The GCC construction industry witnessed unprecedented growth starting in 2003 and fuelled by key a large infrastructure gap, a clear focus on economic diversifi cation to non-oil sectors and a reserve of petro-dollars (accrued from 2007 oil prices).
In 2008, the total value of projects in the GCC was close to US $1.3 trillion. Tough cli-matic conditions, project scale and intricate designs posed engineering challenges, while investors demanded quicker project cycle times to realise the much needed cash.
Construction chemicals played a seminal role in overcoming these challenges and contributed in a big way to the growth of the construction industry in the GCC. The construction chemicals market was worth US $770 million in 2008.
This market has grown at an average annual rate of around 20% between 2004 and 2008. Concrete admixtures form the largest single product category and accounted for over one-third of the market in 2008. Flooring systems accounted for close to one-sixth of the market, making it the second largest product segment.
Liquid waterproofi ng systems constituted 12.6% in 2008. This is part of much bigger water proofi ng application segments, which are dominated by sheet membranes, mainly because of signifi cantly lower prices.
Concrete repair products accounted for 8.5% of the total market. This is notice-able, particularly because the GCC con-struction market is a relatively new one and the majority of demand is from new construction repairs.
Construction chemical suppliers gen-erally work in close association with the ready-mix concrete companies and other subcontractors. This is because the specifi c formulation for a particular application has to be designed based on requirements for maximum effi ciency.
For example, the right admixture can sig-nifi cantly reduce the shuttering time and improve the fi nish, which can shorten the project cycle and avoid rework expenses. Considering the value that construction chemicals bring to a construction project, it is evident that construction chemical com-panies have emerged as strategic partners in project engineering and execution.
Abu Dhabi has emerged as a new centre for construction growth in the UAE. Also, some of the big projects like Dubai Metro Green line and Reef Island in Manama are likely to be fi nished in 2010. Labour and construction material costs are signifi cantly lower (close to 2006 levels) and this cre-ates a case for investment in construction projects targeting real demand. While a recovery is expected by mid 2010, the new market is very unlikely to be what it was during the great boom of 2003-2008.
With higher price sensitivity, excess capacity and tighter budgetary control on projects, construction contractors could be very demanding customers. This will mandate that construction chemical sup-pliers will have to revisit and reinforce their value proposition by innovation and value engineering. Working closely with other stake holders, such as ready-mix concrete suppliers and construction contractors to understand their pain points and creating an innovative value-engineered offering, is the mantra for success. Also, learning from the past the construction chemical suppliers need to manage their customer pool as a portfolio in order to diversify business risk and reduce volatility in income lines.
In the short run, the theme for manag-ing should be to watch cash fl ows, allocate resources to innovation (a slowdown in market reduces the opportunity cost for an alternative investment) and prepare for the steady growth post market recovery.
How important have construction chemicals been for GCC growth?FROST & SULLIVAN’S RAHUL KHARE SHEDS SOME LIGHT ON THE CONSTRUCTION CHEMICALS MARKET IN THE GCC
The opinions expressed in this column are of the author and not of the publisher.
Rahul Khare is a senior consulting analyst with Frost & Sullivan’s material practice for the South Asia & Middle East region. Rahul is responsible for tracking the paints, polymers, packaging and construction chemicals industry for the Chemicals & Materials practice. He has an MBA in Strategy & Marketing, and an Engineering degree in Chemicals. His past work experience includes working in capacity of assistant product manager for various engineering projects.
“THE CONSTRUCTION CHEMICALS MARKET WAS WORTH US $770 MILLION IN 2008. THIS MARKET HAS GROWN AT AN AVERAGE ANNUAL RATE OF AROUND 20% BETWEEN 2004 AND 2008.”
CONSTRUCTION WEEK APRIL 17–23, 201016
ALE SK90In September 2008 Abnormal Load Engineering unveiled the world’s highest
capacity and based crane. Designed and built by ALE’s Research & Development Unit in Breda, Netherlands, the crane has a capacity to lift 4300 tonnes. Intended for use in the engineering construction, nuclear and offshore fabrication industries, the crane can be dismantled and shipped around the world in standard 20ft and 40ft shipping containers.
In what is a fi rst for a crane of this type, it can be relocated
on site fully rigged saving considerable time during the construction schedule of major projects. The ability to lift heavy loads at large distances allows engineers to complete foundations and pipe racks in advance of major equipment installation.
TEREX-DEMAG CC8800-1Launched to huge acclaim here in Dubai back in 2007, the CC8800-1 Twin features
an unusual double-boom lattice arrangement. Operating as a pick-and-carry crawler crane with 3200te (3527 tonnes) lifting capacity and a maximum load moment of 44,000 tonnes, the ‘Twin’ represents a considerable saving of both time and space requirements in the erection of large industrial facilities – when compared with ring lift cranes and jacking towers. The crane belongs to Al Jaber Heavy Lift, which played a signifi cant part in its inception.
WE TAKE A LOOK AT SOME OF THE TOP CRANES EVER BUILT AND HIGHLIGHT SEVEN OF THE MOST EXTRAORDINARY ONES IN ENGINEERING TERMSBy Greg Whitaker
TOP 7 CRANESLIEBHERR LTM 11200-9.1This is the king of all-terrain cranes. The
German factory has said that the production run of this model is strictly limited to eight pieces – and Al Faris of Dubai got the fi rst one. The LTM 11200-9.1 is the strongest telescopic crane in the market and has the longest telescopic boom in the world. The eight-part boom is fully automatically extended to, and fi xed at, the desired length. In addition, various lattice exten-sions are available. The Y-shaped telescopic-boom guying system offers remarkable increases in load capacity. The active, speed-dependent rear-axle steering developed by Liebherr is inte-grated into the nine-axle chassis.
17APRIL 17–23, 2010 CONSTRUCTION WEEK
> For more top 10s visit www.ConstructionWEEKonline.com
MAMMOUT ‘PTS 160-DS’Ok, they don’t exist yet, but Mammout, a worldwide specialist in heavy lifting and transport, announced the introduction onto the market in 2011, of two new
generation cranes, developed in-house, for the very heaviest lifts. These two cranes, the PTC 120 DS (maximum load moment 120,000 tonne meters) and the PTC 160 DS (160,000 tonne meters) introduce a whole new range to the world of cranes. The key feature of the new generation is that the cranes combine outstanding capacity with great versatility to facilitate a new approach to heavy lift and construction projects. The new generation cranes will enable the company to respond to the changing needs of the markets and projects. The designs of the new generation cranes are based on the successful Mammout PTC concept, over forty years of experience, and the emerging needs of the market. The PTC 120 DS and PTC 160 DS carry the ballast (max. 3400 tonnes) on rings, hence they are relatively compact and can operate in confi ned areas. The ring design enables the cranes to slew (rotate) a full circle on its bogies relatively quickly. The cranes can also move in a straight line on the bogies while carrying a load on the hook. Finally, the whole crane can be relocated on the job site using
SPMTs (self-propelled modular transporters), or on its own bogies. PTC cranes use winches for lifting the heavy loads quickly. Furthermore the PTC 120 DS and 160 DS also have auxiliary winches which can lift smaller loads at even higher speeds. This makes the cranes more versatile and ensures they can be used at all stages onsite.
DEMAG CC12600Another entry for Demag, the world’s largest tracked lattice boom crawler crane (as far as
we know). This leviathan was built as far back as 1997, yet it still wears the crown.An interesting fact is that in our archive pictures, the crane is seen building the Miller Park stadium back in the late 1990s. This site saw a tragic accident involving another mighty crane known as ‘Big Blue.’ The Lampson Transi collapsed while handling a major section of the roof, killing several people and demolishing a section of the stadium.
TADANO ROBOTOPSWe’ve seen remote control cranes before, but Tadano’s
concept looks like the stuff from our nightmares. Crawling on six legs, which also double as outriggers, the concept, named ‘Robotop’ weighs a total of 2.7 tonnes and has 29 joints allowing 360 degree movement. It also has three
in-built cameras, so an operator walking with a remote control can see all around. Payload is a little low for a construction crane though, as the machine is capable of only lifting 220lb. The study was put together by Okayama University as a design exercise and while there are no plans to put it into production, the makers state ‘we plan to apply and utilise the technologies of this robot in the development of our future products.’
WOLFF 1250BThe title for the world’s largest tower crane is disputed at the moment, as Wilbert claim to
have made one larger than the recently launched Wolff 1250B. What is not in doubt though is the size and quality of the Wolffkran luffer. Lifting capacity is 60 tonnes. The 132 kW hoisting gear gives 20 tonnes capacity in one-fall operation, 40 tonnes on two falls and 60 tonnes on three falls. A four-fall 80 tonne capacity version is also possible. These cranes are popular where round the clock lifting of heavy sections are necessary.
(3900 psf)(5500 psf)
CONSTRUCTION WEEK APRIL 17–23, 201018
ANALYSIS
Risky businessCONSTRUCTION WEEK EVENTS DIRECTOR, OSCAR WENDEL, TRAVELLED TO IRAQ
TO LEARN FIRST-HAND IF DOING BUSINESS IN THE COUNTRY IS REALLY A PRACTICAL POSSIBILITY
A city of both peril and opportu-nity, Baghdad is a contradiction on most counts when one talks about doing business there.
The feasibility of risk pre-miums for doing business in Iraq, as well as the fi rst mover
advantages for entering the market are debatable. Many have been overly optimistic about the prospects.
But again, the untapped abundance of natural and human resources alongside a pent-up demand for new public infrastructure, is begging to be explored.
For instance, electricity is estimated to only reach a quarter of the population in many areas, with con-tracts consistently being awarded to western fi rms on a large scale.
The ongoing plan is to invest around US $150 billion in infrastructure development by 2025. Housing is a
19APRIL 17–23, 2010 CONSTRUCTION WEEK
satellite tracking system, if he was killed. The cars are monitored by US Army heli-copters circling the city at all times and the routes are announced and cleared at least 48 hours in advance. I wondered if the security measures were a little exag-gerated and driven by transport costs in the region, which were $6000 to $10,000 per convoy.
But just two days after I returned from Baghdad, the embassy area where I was staying, located in the International Zone (former Green Zone), was attacked with bombs, mortars and fi refi ghts took place. The fi rst reports were of 35 dead and 200 wounded. Yet, these events are becoming less frequent.
Speaking to CW on security concerns in the city, Mohamed Al Assam, founder, chairman and MD of Dewan Architects said he saw steady improvements during each passing month. He also pointed out that his com-pany’s order book was evenly split between government and private contracts.
Work won by Dewan includes the Bab Al Murad complex which includes a 10-fl oor hotel and three-level shopping centre, Rotana Hotel Baghdad which is scheduled to open
in 2012. It will be the fi rst 5 star hotel in Baghdad since the seventies. And the Urban Renewal proj-ects for Aadhamiya, Karbala and Najaf tra-ditional city centers that according to Al Assam, “aim to fi nd
methods to adapt the area to contemporary demands without damaging the spiritual legacy contained in its historic structures.”
Al Assam asserts that a success factor for getting business in Iraq is having a presence in the country, with daily dialogue and close relationships with the project offi ces of the ministries, where companies register.
The urban regeneration projects and infra-structure works are primarily fi nanced by government bodies, such as the Baghdad Municipality and the Ministry of Public Works and Ministry of Transport.
The most inspiring story from my Baghdad visit was at the State Company for Automo-
> For the latest analysis log on to www.ConstructionWEEKonline.com
10 STEPS TO BETTER BUSINESS IN IRAQ1. Increased security and safe housing
2. Improved import logistics
3. Access of personnel to the country
4. Effi cient visit and work visa processing
5. Competitive wage levels for competent
expatriates
6. Maturity of frameworks for contractual
implementation with investment
7. Clearer fi nancial laws
8. RFP processing more transparent and
effi cient
9. Stability and predictability of
government
10. Less corruption
These points were listed by country managers of some western fi rms that have been operating in Baghdad’s International Zone for several years on the condition of anonymity.
“URBAN REGENERATION PROJECTS AND INFRASTRUCTURE WORKS ARE PRIMARILY FINANCED BY GOVERNMENT BODIES, SUCH AS THE BAGHDAD MUNICIPALITY AND THE MINISTRY OF TRANSPORT.”
priority in Baghdad, with the mayor, Sabir Al Issawi, having revealed a fi ve-year plan to build 300,000 houses in addition to a $3 billion city metro, 12 new power plants, hospitals, hotels and schools. The $6 billion port, south of Basra, was also recently put out to tender.
Yet, security, politi-cal stability and the lack of an adequate legal framework for tendering and proj-ect management, remain a signifi cant concern.
On landing at Bagh-dad International Airport, I was picked up by one of the major security fi rms.
In general, the Personal Security Detail Units travel in convoys of four. With con-stant radio traffi c between the drivers, a seamless teamwork effi ciently cuts off any car from coming too close to the clients in the armored vehicles. The art is called CP driving (Closed Protection).
The former SAS soldier in my car was armed with a machine gun and said that if something should happen they would physically move me to safety if needed. The fi nal instruction given to me was how to activate the emergency sequence on the
LEADING FOREIGN FIRMS IN IRAQ
SETTING-UP COSTS IN IRAQ
AECOM
Pell Frischmann
Cyril Sweett
RMS
Makyol
Mebex
Khatib & Alami
Offi ce rent: $3000 to $5000 per month
for a small offi ce that can accommodate
4 to 5 staff
Car: $25,000 to $35,000 to buy a car
Hiring staff: $1000 per month to hire an
offi ce manager
Security staff: $28,000 per month ($700
each for 4 people – minimum required
number of security staff for an offi ce)
Offi ce boy: $500 per month
Driver: $700 per month
tive Industry (Scai) where the assembling of Scania trucks resumed last December.
Manager of truck manufacturing Abed Abbas Nahi claimed that during the second Gulf war, looters falsely informed the Americans that his factory was loyal to Saddam.
“I spoke to the Americans and they were surprised I spoke English and was an engi-neer, almost expecting us to be riding around
on camels. The Americans told us to leave. I said ‘You want to kill me, you can kill me, but I’m not going to leave’.”
Ten men stayed with him and defended the factory buildings. “We had Kalashnik-ovs and two RPG7 rocket launchers. We barricaded ourselves around the buildings and on the roofs with almost four months of fi refi ghts going on. The factories around us were all looted down to the bricks with only the columns left standing.”
Today, Scai is the only vehicle assembly plant in Iraq with its fi rst 50 trucks completed. Has a page been turned and is Iraq proving itself business worthy? You decide. �
CONSTRUCTION WEEK APRIL 17–23, 201020
SPECIAL REPORT
ALUMINIUM SUPPLIERS AND MANUFACTURERS ARE GETTING A FEELING OF DÉJÀ VU AS PRICES ARE ESCALATING JUST LIKE THEY DID BEFORE THE CRISIS. CW TALKS TO
COMPANIES WITHIN THIS SECTOR TO FIND OUT HOW THIS SITUATION IS AFFECTING THEM AND HOW IT WILL AFFECT THEM IN THE FUTURE
By Sarah Blackman
HISTORY REPEATING
In August 2008 the prices of building materials, from concrete to copper, peaked as a result of rising oil prices and the increased demand on supplies, due to the construction boom.
Prices then plummeted during the fi nancial crisis – a time when projects were halted and the demand for materials diminished, particularly in Dubai.
Suppliers, which were attracted to the Gulf during the time when construction was rife, were left to compete with the many other manufactures and deal-ers trying to get work.
At present, it seems that the price hike is repeating itself – just last week CW reported that steel prices had increased by US $272 (AED1000) per tonne, and
now the cost of aluminium appears to be gradually following the upward trend.
“Over the last 12 months between February 2009 and Febru-ary 2010, the 60 building work categories [including metals and timber] have recorded an average rise of 1.4%, but over the last six months between August 2009 and February 2010 an average rise of 2.0% has been recorded, illustrating how the trough of the cost trend occurred mid summer last year,” says a recent report from Davis Langdon.
HIGH PRICESThe London Metal Exchange (LME) listed the price of primary aluminium in January 2009 as US $1413 per tonne, falling slightly to $1330 per tonne in February before rising to $1420 per tonne in April.
The price of aluminium is now rated at $2380, that’s a 67% increase on last year. And oil costs recently rose above $85 per bar-rel, which could rocket the price of aluminium even further.
$2400THE PRICE OF ALUMINIUM
IS SET TO EXCEED
PER TONNE THIS YEAR
“The LME rate will cross the $2400 per tonne level this year,” predicts Khalfan Al Suwaidi, general manager of Emirates Extrusion Factory, a subsidiary of M’Sharie, a private equity arm of Dubai Investments.
“If the Iranian nuclear issue escalates, this may be the biggest factor that affects the oil prices, which is directly correlated to the price of aluminium. Also, if the US and European economy picks up, then aluminium prices will defi nitely go up.”
Before the fi nancial crisis, the price hike was perceived as good news for aluminium suppliers because, due to the high demand for building materials, they were able to negotiate prices.
Some packages acquired for Infi nity Tower in Dubai Marina, for example, were subject to price escalation.
“Between 2007 and 2008 material prices went up, which is when we signed the sub contracts. Still to this day, we have very high prices supplies on site,” Cayan chief development offi cer Ahmad Kasem told CW on a site visit in February.
Dubai’s Mirdif City Centre also suffered a few knock backs due to the high prices of materials.
“We started off the job when Dubai was red hot and as we got it to the project the market escalated quite rapidly and some of the later packages we acquired were prone to infl ation,” says Majid Al Futtaim senior vice president for project management Jonathan Emery.
“Sub contractors and supply chains were taking advantage of the market and, due to the demand, they were able to renegotiate prices, so we had to deal with that.”
But, things are different now and the demand for construction supplies is shrinking rather than souring.
LOW DEMAND, OVER SUPPLY“As the aluminium industry in the Middle East was mainly cater-ing the construction sector, the present market conditions have largely affected the industry. The demand for the aluminium has not yet picked up,” says Gulf Extrusions managing director Modar Al Mekdad.
“The demand has been declined dramatically by around 70% so far,” agrees Suwaidi.
The low demand for aluminium has also had a knock on effect on the number of supplies available. The construction boom led to hundreds of suppliers setting up base in the GCC, and those suppliers are still here.
“Before the fi nancial crises there were enough projects to cover the supply. The situation has changed and there aren’t enough projects to meet the supply of aluminium,” says Reem Emir-
MODAR AL MEKDAD..
“THE DEMAND FOR ALUMINIUM HAS
NOT YET PICKED UP.”
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23APRIL 17–23, 2010 CONSTRUCTION WEEK
ALUMCO
Alumco is a specialised aluminium façade
contractor whose prime business is the
design, engineering, manufacture and
installation of façade systems. The fi rm’s
scope of work covers skylights, cladding,
doors, and windows, double glazing,
tempering, powder coating and steel
fabrication.
www.alumcouae.com
GULF EXTRUSIONS
Gulf Extrusions, which is part of the Al
Ghurair Group of Companies, is one of the
largest extrusion plants in the Gulf. Located
in Jebel Ali, Dubai, it produces more than
7000 profi les ranging from architectural
sections to air conditioning grilles and
customised products. The plant is designed
to produce aluminium sections in mill,
silver and colour anodised, gold dyed and
powder coated fi nishes. Nearly 70% of
the output is used in the local market to
support the building and construction
projects; the remainder is exported to
South East Asia, other GCC countries,
Europe and Canada.
www.gulfex.com
REEM EMIRATES ALUMINUM
Reem Emirates Aluminium (REA) was
formed in May 2006 to serve the rising
demand for architectural fi nishes and
metalwork in Abu Dhabi. The fi rm is part
of the Abu Dhabi-based Royal Group
and is a designer and manufacturer
of aluminium curtain walls. REA has a
20,000m2 aluminium curtain wall factory
that specialises in custom-built architectural
cladding elements, with particular emphasis
on designing and manufacturing unitised
curtain wall panels. It can produce more
than 65,000m2 of curtain wall panels each
month. The fi rm is involved with high-
profi le projects including Etihad Towers
Development and MIST.
www.reemalum.com
GULF METAL CRAFT
Gulf Metal Craft (GMC), a subsidiary
of M’Sharie, is a manufacturer of sheet
ALUMINIUM COMPANIES TO KNOW
metal products. Established in 1989, the
company produces a range of products made
from electro galvanised steel, aluminium
and stainless steel. GMC has developed
manufacturing facilities and has recruited a
team of specialist engineers who can offer a
custom designed service, from initial design
stage through to installation. The company
has supplied electrical enclosures for DEWA
substations, Dubai Internet and Media City,
Dubai Marina Towers and Al Raha Beach
resorts. It has also produced stainless steel
architectural products for projects such as
the Burj Al Arab, Abu Dhabi’s Marina Mall
and Sharjah Exhibition Centre. All sheet steel
enclosures are manufactured from electro-
galvanized sheet steel and all aluminium
enclosures are manufactured from high grade
aluminium alloys.
www.gulfmetalcraft.com
EMIRATES ALUMINIUM
Emirates Aluminium (EMAL) is a joint venture
between Dubai Aluminium (Dubal) and Abu
Dhabi investment vehicle Mubadala. The
company was formed to build a new hi-tech
aluminium smelter in Abu Dhabi and is
currently the largest industrial project in the
UAE outside the oil and gas sector.
The US $5.7 billion complex is located on a
6km2 site in the Khalifa Port Industrial Zone
in Taweelah.
www.emal.ae
ALUMA SYSTEMS MIDDLE EAST
Aluma Systems Middle East rents and sells
a patented portfolio of fast-track aluminium
formwork systems that is designed to reduce
fl oor cycles and labour needs. The fi rm’s
most well known product is the Alumalite
Truss Flying Table-Form, which is among the
fastest slab shoring systems in the world.
Within the Middle East, its head offi ce and
main GCC production facility is in Al Quoz,
Dubai. It also has a sub offi ce in Abu Dhabi.
www.aluma.com
EMIRATES EXTRUSIONS FACTORY
Established in 1993, Emirates Extrusion
Factory (EEF) produces high quality
aluminium systems for architectural and
non-architectural applications. EEF is a
wholly owned subsidiary of M’sharie, a
private equity arm of Dubai Investments.
The company uses mainly aluminium billets
as raw material in the production process
and also trades in the fi nished products. EEF
aluminium profi les are used in a variety of
applications including curtain walling.
www.msharie.com
ALUMINIUM PRICES HAVE A FAR-REACHING IMPACT ON THE CONSTRUCTION INDUSTRY.
ates Aluminium brand manager Timour Asfour.
Suwaidi seconds that argument and adds: “The existing capacity
in the GCC is 500K tonnes of alu-minium, while the demand may
not exceed 200K tonnes. And, local-ly [in the UAE] the supply is 150K
tons and around 45K tonnes is in demand.”
But, it isn’t all doom and gloom for the aluminium
sector. Many compa-nies are expanding into other regions and exporting
their products overseas.“We are cutting our costs, man-
aging our cash fl ow and selling 70% of our stock abroad. We are also hoping to expand our business into Africa,” explains Suwaidi.
And, Gulf Extrusions still has big plans for the GCC: “The projects we will be supplying our materials to soon include developments within Reem Island, Abu Dhabi and Barwa City, Qatar.”
GREEN CHANCEThe economic situation has also given many aluminium suppliers the time to concentrate on embracing sustainability regulations in the region.
“Gulf Extrusions is working closely with Masdar City in Abu Dhabi to promote the recyclable, sustainable, and versatile fea-tures of aluminum, which we refer as the ‘green aluminium’ and this supports the initiative of reducing carbon emissions
into the environment,” says Al Mekdad.REA has also developed an energy saving, mechanically venti-
lated double skin façade, which saves more than 50% of energy due to the integration with fl oor cooling and chilled beams.
Between 2007 and 2008 prices of aluminium rocketed, but the drop in demand meant that prices fell. Will this happen again and will the market stabilise? “We will see the prices progressively increasing until quarter three of this year and they will level out again during the last quarter,” insists Al Mekdad.
And, Asfour adds: “We expect to see the prices stabilise in the next two quarters.” �
LME OFFICIAL PRICES (US$/TONNE) FOR 12 APR 2010
ALUMINIUM
CASH BUYER 2,380.50
CASH SELLER & SETTLEMENT 2,381.00
3-MONTHS BUYER 2,414.00
3-MONTHS SELLER 2,415.00
15-MONTHS BUYER 2,522.00
15-MONTHS SELLER 2,527.00
27-MONTHS BUYER 2,610.00
27-MONTHS SELLER 2,615.00
MR KHALFAN AL SUWAIDI.
“WE ARE CUTTING COSTS, MANAGING
OUR CASH FLOW AND SELLING 70% OF OUR
STOCK ABROAD.”
www.ConstructionWEEKonline.com/directory
DIRECTORY
APRIL 17–23, 2010 CONSTRUCTION WEEK 25
RAILWAY UPDATE | CITY UPDATE | SUPPLIERS
DIR
ECTORY
To
advertise p
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ishir D
esai +9
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SECTOR FOCUS26 Transport
CITY UPDATE28 Madinah
SPECIALIST SERVICES30 Design software31 Construction manufacturers/steel
INTERNATIONAL DEAL AGREEMENTS HAVE BEEN THE PICK OF A DIFFICULT ENVIRONMENT FOR THE SECTOR
By Ben Roberts
T he transport sector has been typical of the heavy recent involvement of government and state-owned institutions in projects, including
international link-ups, as private fund-ing resources dwindle.
Qatar produced a key example last week. Public transport fi rm Mowasalat is close to fi nalising a deal with the Eritrean govern-ment to provide complete transport solu-tions, according to chairman Jassim Saif Al Sulaiti. In February Eritrean president Isaias Afwerki visited Mowasalat’s offi ce.
Like Eritrea, Saudi Arabia has also been looking abroad for the right project partners. Last week, Saudi Arabian Railway (SAR) signed a US $74 million (SR278 million) agree-ment with India’s state-owned Rites Limited to run a major mineral railway linking the northern Jelamaid region with Ras Azzour near the industrial port city of Jubail. This
SECTOR FOCUSTRANSPORT
SHIFTING GEARS
CONSTRUCTION WEEK APRIL 17–23, 201026
comes two months after SAR shook hands with NEC Portugal - a subsidiary of one of the telecommunications and electronics giants - to supply GSM-R Cab Radios to allow com-munication between train drivers and the operations control centres.
At the same time the Riyadh-based insti-tution became the sole operator of the $7 billion Saudi Landbridge development, a cargo and passenger railway that will link Jeddah on the Red Sea coast, and the ports of Dammam and Jubail on the Gulf coast, to ship onwards to the UAE, Iran, Kuwait and other destinations in the Gulf region.
“THE GOVERNMENT IN THE UAE ACCEPTS THERE IS A
PROBLEM OF FUNDING FOR ROADS AND BRIDGES. OTHER JOBS FUNDED BY PRIVATELY-
INVESTED PROJECT ARE GOING ON, BUT AT A
SLOWER PACE. ”
It will also be used to transport passengers between Jeddah and Riyadh.
The private sector in the UAE has had few deals come to fruition in the last year. Mr Govia of Emirates Buildmat told CW: “The government in the UAE accepts there is a problem of funding for roads and bridges. Other jobs funded by privately-invested proj-ect are going on, but at a slower pace.”
As transport-related projects are feeling the squeeze, so too is transporting the materials for the projects, or those hiring such a service. Sharjah, last week, confused the haulage industry with announcements of new road tolls in May – potentially enforcing charges of up to $82. A cancelled press conference accounted for the gap in details.
The toll – announced by the Sharjah Depart-ment of Public Works - will hit all lorries pass-ing between Fujairah and Dubai on Al Dhaid Road and aims to create a revenue stream for the maintenance of the roads impacted by heavy vehicles heading to Dubai.
27APRIL 17–23, 2010 CONSTRUCTION WEEK
Paul Austin-Price, senior business devel-opment manager at trailer manufacturer Gorica, said: “You can be sure that if a trans-port company incurs an extra toll cost it will be passed on to its customers.”
He was skeptical about the visibility of such maintenance funding. “With the sort of money coming from transport compa-nies in costs in the past – [you have to ask:] where’s that money gone?”
Towering over all projects in the region is the Al Maktoum International Airport, the brainchild of Dubai Airports that on paper will be the world’s biggest passenger and cargo hub – forecasted to be worth around $8 billion. CEO Paul Griffi n told a newswire in February that expansion plans for Dubai International Airport would run into “millions of dirhams.”
Construction delays pushed the fi rst stage of completion to June this year. Al Naboo-dah Contracting Company is contracted to build the fi rst runway.
The big tender in Saudi Arabia - that closes in the next few weeks - is the second phase of the Haramain High Speed Rail Project that will link Madinah and Makkah via Jeddah. The project was spurred on by a study by the Ministry of Hajj, that found the number of pilgrims to Makkah would grow by three million and the number of Umrah performers to more than 11 million over the next 25 years. The annual increase
is expected to be 1.4% for pilgrims and 3.14% for Umrah performers.
The fi rst phase of the electric high speed passenger line link – which will eventually have a top speed of 360 km/hr - will be completed in two parts. The fi rst consists of the civil works, including viaducts and retaining walls, subways, shafts, tunnels and embankments. Part two includes con-struction of the fi ve passenger stations link-ing Makkah Central, Jeddah Central and Jeddah Airport, King Abdullah Economic City in Rabigh and Knowledge Economic City in Madinah.
The second phase sees the designers drafted in along with construction, operation and maintenance of the track, installing signal-ling and telecommunication systems, rolling stock, power supply and catenaries.
Alstom are among the bidders to pro-vide the rolling stock, and Saudi Bin Ladin Group (SBG) is also believed to be in the mix. Ahmed Anees of SBG called it “an important project”.
In Kuwait, work began on the $96 mil-lion construction of the road intersection in Al Fahaheel at the beginning of 2010, won by Combined Group Company for Trad-ing and Contracting. The work includes establishment, creation, and maintenance of the intersections on main roads (Road Fahaheel Highway to Southern Alsobaheya and Mangaf). �
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MADINAH HAS HAD TO FIGHT ITS CORNER AGAINST SAUDI’S BIGGER CITIES, BUT MULTIPLE PROJECTS LOOK
TO TRANSFORM ITS FORTUNES
By Ben Roberts
L ocal developers in Madi-nah will be hoping that the increase in the number of pilgrims to the city at the end of last year for the Hajj season is the fi rst of
many boosts to visitor numbers. The city has long dreamed big dreams
to expand its full-to-bursting borders and drive its reinvention as one of the key des-tinations for Middle Eastern talent.
Despite its historical importance the city has fought to escape the shadow of the two biggest cities, Jeddah and Riyadh.
As such not all Saudi companies are look-ing to extend their business into what is Islam’s second most holy city. A spokes-person for Injaz Development Company, the Riyadh-based master developer and investment company, said Riyadh, Jed-dah and the Eastern Province remain the company’s chief targets.
Of the 1.5 million houses to be built in Saudi Arabia, he believed few of them will
CITY FOCUSMADINAH
BROADER HORIZONS
CONSTRUCTION WEEK APRIL 17–23, 201028
will be built on the other side of the existing Prince Mohammad Bin Abdul Aziz Airport and will eventually replace it.
The new airport has been designed for a capacity of 8 million passengers per year and will cost SR7-8 billion. An international tender is due to be fl oated next month. Alaa Samman, general manager of busi-ness development at the General Authority of Civil Aviation, told Arab News: “The actual work on the airport will start one year after the contract is awarded. It will take at least two years to complete.”
The long-awaited Haramain high-speed train is another project far on the horizon. Civil work by Al Rajhi Alliance has been ongoing for a year now, though the line from Jeddah to Madinah is the second stage after the Makkah-to-Jeddah line is installed.
For a dense population, the bare essen-tials seem to be working well. Data col-lected from Madinah Urban Observa-tory (MUO), in an ongoing study on
be coming out of the ground in Madinah. With 70% of the people working for the government, and another 30% in the hos-pitality industry, he estimates, the lack of clamour for these homes “might come from the fact that the population is not growing as much as Riyadh”.
But this year it has typifi ed the resilience of KSA amid a wider economic challenge
as huge projects are set to begin that will better connect the city with the rest of the country, the Gulf, and the wider world.
The newest project was announced at the end of last month, when the city was confi rmed as the venue for the country’s fi rst private airport, a four-year task. It
“THERE WILL BE A TENDER, PROBABLY NEXT MONTH, FOR
THESE INFRASTRUCTURE ELEMENTS, INCLUDING
SITE GRADING.”
29APRIL 3–9, 2010 CONSTRUCTION WEEK
KNOWLEDGE ECONOMIC CITY LOWDOWN
HARAMAIN HIGH SPEED TRAIN LINE
Land area: 4.8 million m2
Total investment: SR30 billion
Expected population capacity: 150,000
Visitor capacity: 30,000
Jobs created: 20,000
Main features: Business centre, Islamic
civilization studies centre, theme park,
residential areas, passenger station,
commercial complexes.
Phase 2 deal value: US $2 billion
Top speed: 360 km/h
Distance between Jeddah and Madinah:
372 km
Time between cities: 2 hours (time
saving: ½ hour)
in demand for our services on the back of this project, but that hasn’t slowed us down.”
He adds that the initial infrastructure that includes sewerage pipelines for the 480 hectares marked out can be a frustrat-ing element of jobs like this, as for a long time it does not appear that anything is happening at the site.
But now things really are starting up – almost at the half way point between its announcement and its prospective comple-tion. It has been a long half-year, mainly at the design stage for those on the con-struction and project management side, along with the initial public offering on the fi nancial side.
“What’s happened in the last six months is that there’s been a closing out of the infra-structure design process and some of the initial residential projects, and we are now looking to procure them,” he says.
“This is the procurement for the main contracts: the infrastructure contracts and gated communities. There will be a tender probably next month for these infrastruc-ture elements, including site grading; all of what we would call ‘enabling work’.”
The unique selling point for the KEC, he adds, is that it is not exactly a stand-alone city – instead it is very much part of Madi-nah. It means that it will share the city’s electricity and water supply.
Dickson says the KEC has been in discus-sion with the Saudi Electricity Company and the National Water Council thrashing
the social and economic dynamics of the city, found few complaints from locals about water or electricity, despite a few laments from locals for the state of some of its old buildings.
But there is little doubt that one particular project is to transform the city and give international access as never before, and this month it reached a key point.
The Knowledge Economic City, fi rst announced in 2006 as the third of six economic cities, has completed some of its initial infrastructure work. For a proj-ect of such scale that will incorporate business, retail and residential innova-tions, create 20,000 jobs in the so-called ‘knowledge-based industries’ and bring in around SR10 billion a year this is some-what understandable.
Nevertheless, Mark Dickson, project manager at KEC charged with deliver-ing the ambition to reality, the change in the offi ce is palpable.
“Certainly there’s a mixed sense of appre-hension in the offi ce,” he tells Construc-tionWeek. “We’ve almost been a victim of our own success as we’ve seen an increase
out the details of supply to all its facilities. “We are close to the city, so what we needed to do is arrange agreements to be able to guarantee supply. For the project there will be approvals on design requirements passed back through them, though we’re hoping this won’t add any extra time.
He expects a lengthy procurement time, however, as contractors bid for the design and construction aspects of this unprec-edented project – which will essentially be completed in stages based on demand.
“As a major developer our aim is to provide the infrastructure and about 20% of the facilities overground. Our aim is to provide 220 hectares of infrastructure; that will be developed and then when that reaches critical mass the rest will be rolled out in phases based on demand.” �
“AS A MAJOR DEVELOPER OUR AIM IS TO PROVIDE THE INFRASTRUCTURE AND ABOUT 20% OF THE
FACILITIES OVERGROUND.”
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CONSTRUCTION WEEK APRIL 17–23, 201030
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When the highest building in the world opened on January 4 in Dubai, Hansgrohe AG from Schiltach in the Black Forest was also celebrating.
The German bathroom fi ttings and shower manufacturer supplied more than 5000 fi t-tings for the Burj Khalifa. The wash basin mixers from the Axor Starck luxury collection were made in the company’s manufacturing plant in Schiltach owned by the international company, which has been operating its own subsidiary in the UAE for many years.
The installation started in 2008 and was fi nished in June 2009. The project made a noticeable difference to the company’s sales and strengthened its position in Dubai.
“Hansgrohe was given a great deal of credit for not pulling out of the market in the face of the economic crisis, unlike other compa-nies,” said Siegfried Gänßlen, chairman of the management board of Hansgrohe AG.
This success story, he believes, shows how developers, architects and interior designers value German innovation and engineering.
“This is why we were able to acquire numerous projects in the United Arab Emirates even during the crisis year
of 2009,” said Gänßlen. “We see further great potential in this region, and consequently Hansgrohe will be open-ing a new subsidiary in Abu Dhabi later this month, as
well as a new fl agship store in Dubai – not far from the Burj Khalifa.”
Hansgrohe attributes its success on the project to excellent teamwork between local partners in
Dubai and the Hansgrohe team at the site. “With our designer brand Axor we met the
requests of the involved parties to deliver high-quality modern bathrooms. We regularly and
intensively trained the sub-contractors of the construction company that carried out the installations.
“Our team from technical services also gave advice on-site in case of complicated installations. It is important to
have a professional team that is able to answer all questions regarding design and bathroom concepts. We had interior designers and engineers on site who support all the compa-nies involved in the tendering and planning process.”
Hansgrohe is nearing 109 years in business and during 2008, the company generated sales of about US $908 mil-lion (EUR668 million) with its Axor, Hansgrohe, Pharo and Pontos brands.
The Hansgrohe Group currently has a global workforce of around 3200 employees, with about two-thirds of them working in Germany. �
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HANSGROHEMANUFACTURER OF BATHROOM FITTINGS AND SUPPLIER TO BURJ KHALIFA
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31APRIL 17–23, 2010 CONSTRUCTION WEEK
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CONSTRUCTION WEEK APRIL 17–23, 201032
DIALOGUERASHED MUBARAK AL HAJERI
What are your plans for Cityscape 2010?We plan to celebrate our success. We really want to emphasise our commitment to actively achieve plan 2030, by showcasing projects that commit to a new dimension in quality municipal services, taking into consideration the needs of residents and visitors to the emirate.
How will this year’s event compare to last year’s?This year we have a unique unifi ed stand together with the Abu Dhabi City Municipality, Al Ain Municipality, and the Western Region Municipality. DMA’s ‘Membrane’ stand design will showcase world class technologies and is our main theme at Cityscape Abu Dhabi 2010. The ‘Membrane’ conveys the message of an independent and transparent authority that protects and covers all. The stand’s design is also permeable to outside infl uences, innovations and yet acts as a fi lter to protect and retain its own culture and identity. The stand’s technology consists of a 4D theatre, augmented reality kiosk, projector shows, and touch screens.
Do you expect to see an increased number of visitors? Yes, I hope so. The GCC remains a stable and prosperous region. However, it would be pointless to deny that in terms of global perception the area needs a beacon and I fi rmly believe Abu Dhabi’s resilience and ambition have provided that. I really believe there is a sense of energy and interest around Abu Dhabi and believe Cityscape provides a great opportunity for people to see and experience that.
Will there be any major announcements from DMA at Cityscape? Together with Abu Dhabi City Municipality, Al Ain Municipality, and the Western Region Municipality, we will be showcasing 30 projects through world-class technology. These projects are spread to include infrastructure, landscape, and customer services. These projects will highlight having one, unifi ed municipal system working to deliver a better quality of life, work, and investment.
City scopeAbu Dhabi’s department of Municipal Affairs chairman Rashed Mubarak Al Hajeri discusses his plans for Cityscape 2010, which will take place in the UAE capital this week
By Sarah Blackman
What are the benefi ts of attending Cityscape?We are working harder, smarter and more effectively to deliver a better quality of life and to achieve a sustainable living environment in the emirate of Abu Dhabi, and Cityscape is a great opportunity to develop a sense of interest in the sustainability projects taking place in the emirate of Abu Dhabi. What important initiatives do you have planned for this year?Among our major initiatives is adapting international building codes and global standards of regulation in Abu Dhabi. One of the most important projects to be showcased, the building codes will provide a better quality of life across the emirate of Abu Dhabi, and will spread a new culture of climate sensitive, durable, high performance ‘green’ buildings among the construction and investment companies.
How have you seen Abu Dhabi change since DMA’s establishment in 2007?We have been working together to achieve an advanced municipal system that enables sustainable development and enhances quality of living for the emirate of Abu Dhabi. Since 2007, we have succeeded in our mission to achieve the Abu Dhabi Government’s objective of providing distinctive municipal services that enhance the quality of living of all residents through coordination, oversight and monitoring of the Abu Dhabi municipalities and municipal councils. Abu Dhabi has been in a position to weather many of the economic storms and, frankly, exploit its relative strength
to position itself more than ever as a destination of choice. We have been able to host a series of world class events of which Cityscape is just the latest, while pushing on with a raft of regulatory measures that have proven a great platform in saying to the world that conforming to the highest standards in building and planning only underscores our ambition to be considered among the world’s elite.
Al Hajeri was appointed as the chairman of the Department of
Municipal Affairs in January 2009. He is also a member of the
Executive Committee of the Executive Council, the Environment
and Infrastructure Committee of the Executive Council, the Urban
Planning Council and the board of directors for Holding Company
in Abu Dhabi. Al Hajeri commenced his professional career in 1984
at Abu Dhabi Investment Authority before becoming the deputy
director of Financial and Administrative Affairs to the end of 1993.
He was later appointed as a member of Executive Council of Abu
Dhabi and a chairman of Department of Civil Service. Al Hajeri holds
a bachelor in Public Administration and Law from UAE University.
BIO
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