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Issue No.3

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Crossing new frontiers The creation of the New Rail Link through the Alps (NRLA)

Industry Focus: decom north sea

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Business John O’Hanlon Editor johanlon@bus-ex.com Will Daynes Editor wdaynes@bus-ex.com Matt Johnson Art Director mjohnson@bus-ex.com Louise Culling Production Designer lculling@bus-ex.com Richard Turner Director of Sales rturner@bus-ex.com Vince Kielty Director of Editorial Research vkielty@bus-ex.com

Business Excellence brings you content from leading business influencers and strategic thinkers providing inspiration and guidance to help you and your business grow.

We showcase some of the best examples of successful organisations from around the world giving you a unique insight into how they operate.

Sharon Rooke Administration & Operations srooke@bus-ex.com Matt Day Head of Technology mday@bus-ex.com Andy Turner Chief Executive aturner@bus-ex.com

Contributors Agnes Bamford Business coach

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Exact Software Business software developers David Walton CEO of Bestoutcome Alan Denton MD of The Results Centre

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features

10 18

10 top ten

The world’s top ten banks

Based on recent industry research it is clear that the global shift in banking power has spread to the Far East. Here we explore the ten biggest banks in the world based on Tier 1 capital (common stock and disclosed resources) in $m.

18 leadership

24

The mistakes that leaders make during a recession The strategies business leaders adopt during recessionary times.

24 management

Managing the transition process successfully

The different phases of workplace transition and how to deal with the challenges of a new role.

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contents

30 strategy

time to stop the rot in project management

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Organisations are becoming victims of compulsive, blinkered spending on failing projects on a grand scale.

34 strategy

Making yourself at home in the international marketplace Planning for successful expansion of your sales activities into new markets.

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44 Shale gas

Shale gas: the game changer

Having been looked at from all sides, the case for shale gas extraction has become irresistible to the countries fortunate enough to have it.

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business showcases

industry Focus:

50 68

50 DECOM Offshore 2013

Overcoming obstacles

Chief Executive of DECOM North Sea, Brian Nixon, discusses the recent DECOM Offshore 2013 event and how its outcomes exceeded everyone’s expectations.

54 DECOM North Sea The seas of change

DECOM North Sea is working to help drive forward an industry sector estimated to be worth in excess of ÂŁ35 billion over 30 years.

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68 Boskalis Offshore A century of service

Boskalis Offshore is the driving force behind the offshore energy activities of Royal Boskalis Westminster NV.

76 Optimus (Aberdeen) Limited Dedicated to decommissioning

Boutique engineering consultancy Optimus has developed a unique approach to decommissioning that is garnering growing recognition among operators.

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84

96

Transport & logistics: 84 AlpTransit Gotthard AG

Crossing new frontiers

Chief Construction Officer, Marco Ceriani, discusses the creation of the New Rail Link through the Alps (NRLA), a project that has been dubbed ‘the construction of the century’.

96 Starlite Aviation Group A star shining bright

106

Starlite Aviation Group has grown into a global aviation business. Commercial Director, Dimmie de Milander discusses the strengths of the group and how it is perfectly positioned to capitalise on future growth opportunities.

106 Gibraltar Port Authority

The gateway to the Mediterranean The Gibraltar Port Authority has worked tirelessly to ensure that the Port of Gibraltar meets the needs of an ever-increasing flow of shipping traffic.

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business showcases

114 energy: 114 London Array

Powering the future

Project Director, Richard Rigg, discusses the journey taken by and the lessons learnt from the London Array project, the world’s largest offshore wind farm.

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142

telecoms: 130 Cisco Malta

Tomorrow starts here

The name Cisco has been associated with innovation since its foundation in 1984: its Malta operations are an epitome of its global significance as the industry enters its next evolutionary phase.

142 Azercell

The future is data

Among the forces that bind the people of Azerbaijan together is its mobile communications network: we talk to Azercell’s recently appointed CEO about the technical and social aspirations of the company.

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150

mining & Minerals: 150 Abraservice Nederland More than a steel supplier

The secrets behind Abraservice’s success, the role it is playing in creating a brighter future and Abraservice Nederland’s own contributions towards local and international growth.

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158 IMA engineering

Cutting edge technology

IMA’s products and services can make the difference between profitability and loss for an operation seeking to improve information used by management – and imparted to investors.

170 Grindex

THE ART OF STAYING DRY

One of the strongest brands in the world for dewatering pumps, Grindex is an important partner for mining, construction and infrastructure.

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178 Demir Export

Turning experience into excellence Having more than a half century’s experience, Demir Export is recognised as one of the leading diversified mining companies in Turkey with extensive know-how and competency.

186 Aldridge Minerals Multi metals in Turkey

Aldridge Minerals is a junior Canadian company focused on just one project in Turkey – after a decade of development the Yenipazar mine is on the cusp of production.

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Based on recent industry research it is clear that the global shift in banking power has spread to the Far East. Here we explore the ten biggest banks in the world based on Tier 1 capital (common stock and disclosed resources) in $m Words by: Will Daynes 10 | BE Europe

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Top Ten

10 Agricultural Bank of China $111,493 million

Founded in 1951 and headquartered in Beijing, Agricultural Bank of China Limited (ABC or AgBank as it is also often referred to) is another of China’s financial institutions to have spread its reach across the world.

The bank’s 444,000-odd employees can be found operating in branches throughout mainland China, Hong Kong, London, Tokyo, New York, Frankfurt, Sydney, Seoul and Singapore. In 2010 the bank became the last of China’s ‘big four’ to go public, fetching what was then the world’s biggest ever initial public offering (IPO).

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9 Bank of China (BOC) $121,504 million

Bank of China (BOC) first took its name in 1912, replacing the Government Bank of Imperial China in the same year that the Republic of China was formally established. One of China’s four state-owned commercial banks, BOC is the oldest bank in the country still in existence. Initially functioning as the Chinese central bank it became a purely commercial enterprise in 1928.

BOC is undoubtedly the most international of China’s banks, with branches established on every inhabited continent.

banks

8 Wells Fargo & Co $126,607 million

While the Wells Fargo name can be traced all the way back to when Henry Wells and William G. Fargo established the business to provide express and banking services to California, the Wells Fargo & Co that exists today came about as a result of a merger between the original company and Norwest Corporation in 1998.

The fourth largest bank in the US by assets and the largest by market capitalisation, Wells Fargo’s operations in 2013 expand across the globe with its 270,000 employees providing services to more than 70 million customers.

7 Mitsubishi UFJ Financial Group £129,576 million

It was the merger of Tokyo-based Mitsubishi Tokyo Financial Group (MTFG), formally Japan’s second largest banking conglomerate, and Osaka-based UFJ Holdings on 1 October 2005 that marked the formation of Mitsubishi UFJ Financial Group (MUFG). Headquartered in Chiyoda, Tokyo, the company is today Japan’s largest financial group and the world’s second largest bank holding company holding around $1.7 trillion in deposits.

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Top Ten

5 China Construction Bank Corporation (CCB) £137,600 million

6 Citigroup

$136,532 million Headquartered in the financial heart of New York City, Citigroup was formed from one of the largest company mergers in history between the banking giant Citicorp and the financial conglomerate Travelers Group in 1998. With its largest shareholders including funds from the Middle East and Singapore, Citigroup operates the world’s largest financial services network, with around 16,000 offices in more than 140 countries. Today the corporation holds over 200 million customer accounts.

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Originally known as the People’s Construction Bank of China, China Construction Bank Corporation (CCB) was formed as a joint-stock commercial bank in September 2004. As of the end of 2011, CCB was the second largest bank in the world by market capitalisation and the thirteenth largest company on the planet. Its 13,639 branches and employee base of more than 329,000 have helped solidify CCB as one of the ‘big four’ banks operating in China.

Further afield it maintains branches in Frankfurt, Hong Kong, Johannesburg, New York, Seoul, Singapore, Tokyo, Melbourne, and Sydney, and a wholly owned subsidiary in London.

banks

3 Bank of America $155,461 million

4 HSBC Holdings $151,048 million

Founded by Sir Thomas Sutherland in Hong Kong on 3 March 1865, The Hong Kong and Shanghai Banking Corporation (HSBC) founded HSBC Holdings in London in 1991. Today the organisation boasts around 7,200 offices in 85 countries and territories across Africa, Asia, Europe, North America and South America, and approximately 89 million customers. According to Forbes, as of the end of 2012 was the sixth largest public company.

The Bank of America Corporation is the fifthlargest company in the United States, and the third largest non-oil company, by total revenue. Figures taken in August 2009 show that Bank of America at the time held a total of 12.2 percent of all bank deposits in the United States. Today it retains a retail banking footprint that covers approximately 80 percent of the US population and serves approximately 57 million consumer and small business relationships at 5,600 banking centres and 16,200 automated teller machines (ATMs).

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Top Ten

2

JPMorgan Chase & Co $160,002 million

With a history that dates back over 200 years, JPMorgan Chase is one of the oldest financial institutions in the United States and the second largest bank in the world in terms of assets, which stand at $2.4 trillion. Its 260,000 employees operate in more than 60 countries throughout the world serving millions of customers, small businesses and a number of the world’s foremost corporate, institutional and government clients.

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banks

1 Industrial and Commercial Bank of China (ICBC) $160,646 million

Founded in January 1984, Industrial and Commercial Bank of China Ltd. (ICBC) is the largest bank in the world by profit and market capitalisation. At the end of 2011 the bank had a total of 408,859 employees on its payroll providing financial services and products to 4.11 million corporate clients and 282 million individual customers through 16,648 outlets across China, 239 overseas subsidiaries and a global network of more than 1,669 correspondent banks.

In 2013, it ranked number one on Forbes Global 2000 list of the world’s biggest public companies, and number one in The Banker’s Top 1000 World Banks ranking, the first time ever for a Chinese bank.

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Leadership

The mistakes that leaders make during a recession The strategies business leaders adopt during recessionary times Words by

Alan Denton

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Leadership

W

e have a somewhat complex relationship with leadership in the UK. Whilst by nature we tend to be a largely compliant nation, rarely has public opinion of our constitutional leaders been lower - and criticism louder. Furthermore, resentment of the part played by financial leaders in the economic crisis has been exacerbated by media reports of the pay offs and bonuses handed to banking bosses. But, with the country still feeling the effects of a double dip recession, it is our business leaders who have the most promising opportunity to steer the country out of recession.

It’s easy to blame those at the top when things go wrong – sometimes with good reason. Running a business, whether it’s a small family firm or a large multinational, is difficult when the economy is in recession. The temptation is to take the safest route – but this isn’t always conducive to survival or to growth.

My experience as a business coach working with executives at a senior level, across a range of industries has shown that leaders, from owners and MDs through to department managers, have to take the ultimate responsibility for their company’s performance. Irrespective of the economic conditions and the industry that they operate in, some companies will fail whilst others thrive and flourish - and

“It’s easy to blame those at the top when things go wrong – sometimes with good reason” 20 |

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it is the quality of leadership that makes the difference.

Defining a leader Peter Northouse (2007) defines leadership as “a process whereby an individual influences a group of individuals to achieve a common goal”. Ask almost any person what makes a good leader and they are likely to speak of competencies and attributes such as communication, vision, motivation and charisma. However, in his book Good to Great, Jim Collins asserts that many of the most successful leaders do not start out with a vision of where they want to go - they start out with the right people on board in the organisation. So why does it go wrong for some leaders and what common mistakes have been made during the last 5-6 years of recession?

Over management Unfortunately, my experience has shown that during recessionary times, poor leadership often takes the form of excessive management, rather than getting those ‘right’ people that Collins mentions into your organisation and allowing them the freedom to take up leadership responsibilities within their own roles. Ineffective leaders often spend too much time trying to manage and retain the staff they already have, failing to recruit and engage with new connections in key positions that could help them. However, that isn’t to say that management is unimportant. In fact, it’s entirely necessary, forming the pivotal basis of any business and is often the bedrock of good leadership (w it hout which chaos would

inevitably ensue). However, it should not be to the detriment hof effective leadership.

Executives and managers are always under pressure to perform – and this is multiplied many times over during difficult economic times. However, despite the pressure to cut costs and get quick results, a good leader should continue to communicate their vision, expectations and timescales, giving people the space to do their job rather than suppressing performance by an over reliance on detail and managing down the organisation.

Taking the short term view With this demand for instant results, it is tempting to take the short-term view and neglect the essential strategy of longterm growth, which is more commonly

“Many executives retreat to the safety of their ‘bunker’, metaphorically digging themselves a hole where they sit and wait out the tough stuff ” favoured during times of prosperity.

The result is that many executives are panicked into drastic cost cutting measures, looking for ways to increase short-term gains. Whilst this is all very well, it needs to be balanced with protracted concerted and focused planning for the future growth of the business. Ultimately, a strategy which is determined by narrow and short-termist decisions will almost certainly affect businesses adversely over time. To counter this, we encourage companies and their leaders to explore all the possibilities and potential in their business – as rarely have we come across a business that has done so. – to really stretch themselves, their people and their ideas beyond what they see as possible at present. The results of this ‘stretch’ thinking can often be both unexpected and amazing!

The bunker mentality Great leadership becomes even more crucial during times of economic hardship, yet many executives retreat to the safety of their ‘bunker’, metaphorically digging themselves a hole where they sit and wait out the tough stuff. Proactive leadership tends to go out of the window. The ‘loud’

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ideas of vision, strategic investment and long-term planning is passed over in the cut and thrust of survival, with the ‘quiet’ elements of leadership - getting the right people and making things happen in an often unassuming way also lost in mêlée.

The great businesses that we work with focus on survival – but with a defined strategy for the future and postrecessionary times. Again, key to this is recruiting and keeping the right people.

Ask yourself, what are you doing to attract new talent? What action are you taking now to ensure engagement so that your best people don’t walk away once the recession lifts and more attractive alternatives present themselves?

Looking inwards Coming out of your bunker involves looking at what other great organisations are doing. Whilst it’s important to look inwards, this must be balanced by studying what competitors, industry leaders in your sector and leaders in the wider business community are doing.

What can you learn from what they are (or are not) doing? Seek out success stories; study their foundations of strategy and leadership as well as what their people are doing.

Insularity can lead to an over reliance on cost reduction exercises to drive business practice instead of vision and investment. In fact, many of the organisations that we work with spend significant amounts of money on teams who look at the negative and reactionary i.e. ways of improving efficiency, costcutting and headcount reductions. Whilst

“Coming out of your bunker involves looking at what other great organisations are doing” this may be a necessary evil brought about by the impact of the recession, at the very least it must be counterbalanced by identifying opportunities for investment in risk focused, margin generating strategies.

Summary Challenging times call for nerve, selfbelief and a willingness to take calculated risks. During a recession, leaders need to guard against the natural desire to play it safe and stay true to the vision and qualities that propelled them to the top in the first place. Excessive retrenchment and insularity will almost certainly have a negative (possibly fatal) impact on your business. The most successful leaders trust in their own abilities and those of the people around them, making enrolment, engagement and investment a central part of the goal of long-term growth.

About the author Alan Denton is MD of The Results Centre and regularly coaches newly appointed senior executives from a range of industries. Alan has created leadership and transformational programmes. He coaches and mentors at the highest levels in a variety of business scenarios, including international corporations. www.theresultscentre.com

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Managing the tr

succes

The different phases of w how to deal with the ch Words by

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Agne

Management

ransition process

ssfully

workplace transition and hallenges of a new role

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hange is known to be a major source of stress for most people, which means that no matter how hard you have worked for a promotion at work, or how excited you are by the challenge of moving to an innovative new company, you are likely to find the transition stressful.

There are many variables that influence transition stress, from basic changes in routine to potentially profound changes in how you see yourself and your role within an organisation. Often, much of the focus centres on elements outside of your control, which can make it hard to understand exactly why you feel the way that you do.

The stages of transition The transition period typically involves several phases that most people experience, although the timescale and intensity can vary widely.

“There are many variables that influence transition stress, from basic changes in routine to potentially profound changes in how you see yourself and your role within an organisation” Stage one - firstly, you are likely to experience the ambiguity of initial excitement coupled with anxiety about the new situation. This may be followed by a honeymoon period of discovery and exploration, where people assist you as a newcomer.

Stage two - the first dip is normally a reaction to the environment and an inability to function within it as well as you know that you are capable of. This includes logistical systems and procedures that you haven’t yet learned to manage. After learning to adjust to the new environment and its demands, you will soon function more comfortably and successfully.

Stage three - as you become more involved in the role, you may experience a second dip: an internal reaction as you continue to adjust your behaviour. This is because former behaviours may not be sufficiently effective or generate the expected reaction. However, you should eventually find a way to adapt to the behaviours and norms of the new culture.

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It’s normal to experience these negative emotions, so accept and acknowledge them, whilst focusing on finding the positives and taking action.

Prepare for the challenge ahead The good news is that there are practical strategies that you can use to help manage the anxiety of transition.

The first step is being realistic about the situation that you are entering. This means recognising that transitioning between jobs will almost certainly incur periods of uncertainty and doubt.

However, just acknowledging that this is normal can help you to deal with the situation better. It is also important to appreciate that this is an emotional process, a rollercoaster for some, and therefore not something that you can rationalise your way out of.

Think about how you normally tackle hardship and how you can prepare for these experiences. Difficult situations are often easier to tackle – and may even act as a powerful motivator - as long as you are prepared for them.

Whilst the majority of your attention should be focused on success, it will also help if you are prepared for any

“Difficult situations are often easier to tackle – and may even act as a powerful motivator - as long as you are prepared for them”

negative experiences. It is possible change your mindset and learn how to like being uncomfortable, teaching yourself to enjoy the possibilities offered by tough challenges.

Learning from the past Looking back at other past transitions can help you understand how you may react to change—even if these were other types of transitions such as having children, getting divorced or moving house. Think about a transition that you have faced.

• W hat were the periods of emotional ‘highs’ and enablers of these?

• Similarly, think of the periods of emotional ‘lows’ and what triggered them.

• Reflect on how stress manifested itself during the lows.

• It may be helpful to focus on what helped you to manage this transition.

Now that you have reflected on this past transition, consider the potential implications for your current situation.

What did you learn about yourself that you could apply to your current transition?

Identifying your stressors Another process to help you understand how you may react during the transition is to reflect on what normally causes you stress. Identify the situations, types of people, responsibilities or areas (work and personal) that typically cause you stress. Think about how stress impacts you: what you tend to think, feel and do as a result. Then consider what you can

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“Ultimately, it’s all about committing to the small actions that will have the most impact on creating a positive experience in your new situation” do that will help you to feel balanced and manage stress more effectively, reflecting on what you say or think to deal with these stressors.

10 tips for managing transition stress 1. Knowing what helps us manage transition stress is the first step to a successful transition. Acknowledge and encourage your past successes whilst focusing on going forward.

2. Get into a positive mindset. Reflect on and list the top ten successes in your working life so far. Consider: • W here you have added value to the organisation or people in it.

• W hen you have received praise or recognition.

• W hat has brought you the most enjoyment?

• W hen you have felt positive and satisfied.

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you in this role 12 months from now?

• W hat two things can you do straight away to move towards achieving this outcome?

• I magine a colleague you admire stepping into this role. What would they do in the first month/three months?

5. Look for the positive people in your life. Turn to family and friends for support. Share thoughts and concerns with people you trust who will listen and enable you to talk things through without judgment.

6. Try to make sense of your environment.

Look for logical reasons for why people behave as they do and for why things work differently. Look for the ‘big picture’.

3. Considering the above, identify the main skills/qualities you bring that have enabled your success? Identify ten.

7. Pay attention to the different values, behavioural patterns and communication styles of your new colleagues and respect those differences. How do your beliefs, values and assumptions colour the way you perceive them?

4. Look objectively at your new role: • W hat are the four or five best things about this opportunity?

• W hich of your main skills will be useful?

• W hat would be the best outcome for

8. Be prepared to step outside of your comfort zone. Great learning can occur when you do. Take advantage of your new environment and take reasonable risks.

Get involved in the new community: volunteer, explore and interact.

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9. Pay attention to your physical wellbeing: stay healthy with a well-balanced diet, appropriate exercise and sufficient rest. Feeling physically well will have a significant impact on your ability to deal with new situations and the stress that this can bring.

10. Approach a colleague that you trust who can introduce you to parts of the new culture that you would not otherwise have access to, as well as helping you to make sense of the differences. New colleagues can show you the culture from the inside, as well as helping you to interpret reactions around you and develop effective interaction with others. They can offer feedback and act as a safe sounding board before you take action.

Transition stress is almost inev itable, but w it h preparation it can be managed and minimised. Ultimately, it’s all about committing to the small actions that will have the most impact on creating a positive experience in your new situation.

About the author Agnes Bamford is a partner at executive coaching company The Results Centre and a board member of the Norwegian-British Chamber of Commerce in the UK. Agnes specialises in coaching people through work and life transitions and regularly works with executives from international businesses. She holds an MSc in Business from the Norwegian School of Economics and a PGCE in coaching from the UK. www.theresultscentre.com

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Time to Stop in project m

Cancelling a project early and saving mone it. Much more, argues David Walton, who victims of compulsive, blinkered spendi Words by

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Dav

Strategy

p the rot management

ey is a good thing. There should be more of believes that most large organisations are ing on failing projects on a grand scale

vid Walton

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F

inancial Directors with high blood pressure should look away now. Project management in most organisations is run by people who have no notion of pulling the plug on something that is certain to end in failure. In fact many of them suffer from what we call Project Mastermind Disorder: they’ve started, so they’ll finish.

No matter what the cost.

The result is that within, say, the FTSE top 250, billions of pounds are wasted every year on projects that should have been stopped at a very early stage because they cannot deliver the business outcomes and business benefits they were originally designed to achieve. The worst thing is that planned costs tend to spiral out of control with these projects, as increasingly desperate but doomed attempts are made to get them ‘back on track.’ This ballooning effect within failed projects is especially prevalent in the public sector.

So, two big questions: why and how does this happen? Then there’s a third: what on earth are we going to do about this unbelievable waste of money and – more importantly perhaps – loss of business opportunity because every failure means a successful programme has gone undelivered.

The problem is that, in most cases, project management is still in the dark ages. It operates around an outdated silo culture of keeping your head down and watching your back, sorting out your problems behind the scenes and not admitting to failure. Spreadsheet reporting and an obsession with timesheets and short term issues are dominant. Thinking outside the box,

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“Project managers like to report that everything is OK and running smoothly.

And they tend to dislike adopting technology and methodologies that challenge this” putting projects in the context of other projects and spotting deep-rooted problems are counter-culture.

Project managers like to report that everything is OK and running smoothly. And they tend to dislike adopting technology and methodologies that challenge this. Hence the prevalence of large scale self-fulfilling project management systems that demand lots of data input but don’t provide much of a lateral or helicopter view by way of return.

It’s all part of the old school insularity of project management which creates the opportunity for opacity when it comes to highlighting failure. It makes it easier to hide problems in the hope that they can be dealt with behind the scenes. Often these little problems fester unresolved or unseen and are allowed to develop into full scale crises before they come out in the open. And that’s when good money starts being showered after bad.

The solution isn’t that complicated and it does have the advantage of making blatantly obvious business and financial common sense.

All large programmes involve many

Strategy

different interdependent projects.

Some of these are especially important because they have a direct impact on the success and timetable of others.

There are also many issues, such as resource planning, that need to be monitored and managed across all projects. Finally, it’s crucial that all projects are looked at from the perspective of the outcome they were originally established to achieve. This issue should be closely and constantly tested. Is this project or group of projects going to deliver the business outcome that’s required? If not, then it should be terminated immediately.

This helicopter, strategic view of projects should be run through a separate Portfolio Management Office. It should take responsibility for monitoring project inter-dependence, resource management and pouncing on problems before they are allowed to develop. It should also be there to enforce the adoption of a project management methodology across the portfolio that is totally transparent and focused on outcomes.

One of the key mechanisms within the Portfolio Management Office is a system of quality gates or checkpoints which every project should pass before

it is allowed to proceed. In a nutshell, these gates are effectively tests to check the viability of projects. They are there to ensure that key deliverables have been produced on time before the project can be allowed to proceed.

So how many quality gates should there be? One of Bestoutcome’s automotive clients uses 18 toll gates to manage its complex engineering programmes.

Other clients running IT projects tend to use between four and eight gates.

Bestoutcome’s own outcome driven project management framework has seven gates for most programmes. The simple answer is that there should be as many gates as are needed to guarantee that failing projects will be spotted early and closed down or restructured.

Quality gates and the establishment of a Portfolio Management Office do not in themselves guarantee success. However, they do cut through the sub-culture of box ticking and opacity that pervades traditional project management. It shines a light through the whole process and in so doing massively reduces the risk of ongoing investment in certain failures.

In other words, waste.

Financial Directors, you may resume reading now.

About the author Bestoutcome specialises in complex change management for large organisations operating in sectors such as retail, finance, manufacturing and the public sector. Its approach is based on delivering specific business outcomes within a uniquely transparent, risk managed and open framework. This is achieved by using highly experienced consultants combined with PM3 - an elegant, flexible, toolset - and ODPM, an outcome-driven methodology. Bestoutcome’s starting point is always the same: the client’s ultimate business goal. And it never loses sight of this. www.bestoutcome.com

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Making yourself international

Planning for successful expansion of y Words by

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f at home in the l marketplace

your sales activities into new markets

ct Software

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he time when small and medium sized businesses were only busy with local or national commerce is already far behind us. New technology and free-trade zones have made the world a much smaller place. Legislation has been simplified, import duties often reduced or removed to speed the passage of goods and services over international borders.

Banks have made international finance easier as well, with payment transactions manageable online and facilitated by schemes like SEPA. In combination, these improvements mean it’s now much easier for smaller entrepreneurs to approach new markets.

The challenging economic climate has seen persistent consumer caution over the last few years, in turn making it difficult for businesses to uncover new opportunities for growth. With mature domestic markets often lacking major opportunities to drive new revenue, more and more companies have explored for new customers overseas, looking for markets where the crisis has thinned out the competition.

With first rate communications making international supply chains realistic for smaller businesses, many countries now see competitors from all corners of the globe vying for customer attention. Lead

times for their products have shortened by connecting information in newer, smarter ways. Real time insight and intimate customer contact through social media have created new ways of doing business.

And it’s not just western businesses trying their hand in the emerging economies.

Innovative, energetic companies from Asia and South America have reached Europe, their low production costs and aggressive pricing putting the margins of domestic businesses under pressure.

So, with these trends now well established, how do businesses considering international expansion set themselves up to profit from these opportunities over the longer term? To make a real go of expansion into new markets, there are a number of major considerations that need to be carefully addressed.

Do your homework – thoroughly Broadly speaking, the first step is to ensure the business has a clear view of the potential new market and a carefully planned strategy for capitalizing on the specific opportunities that it offers.

Which competitors are active? How do our products or services differ? Where are the strengths in our offerings we can leverage to create appetite? How are you going to take on the competition in terms of launching and then maintaining

“With first rate communications making international supply chains realistic for smaller businesses, many countries now see competitors from all corners of the globe vying for customer attention” 36 |

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Strategy

“Unfortunately, it’s quite often the case that employees in satellite sales offices are kept busy with all manner of non-sales related local activities” exposure? Will you challenge them on price, by offering a more innovative and attractive product or service, or will you outdo them with the level of customer service you offer as standard? And how will we steer our operations – from a central headquarters, through a local dealer/representative network, or though self-owned subsidiary offices?

With this many questions on the table, it’s essential that appraisal of where strengths lie, and how they match up to potential opportunities, is brutally honest. These then need to be translated into clear steps that will allow you to create an impact. Not having this crystal clear will result in missed opportunities, and time being invested in activities that deliver little towards the end goal. It’s also important to have a clear order in the tasks that need to happen, helping avoid scenarios when too much is done at once with little end effect. Whatever the strategy you choose and decisions you make, one thing is for sure: the IT setup you choose to support your business operations will be one of the critical success factors.

Economic outposts Sales offices overseas have one primary goal to fulfill – supporting the business in achieving its growth ambitions. However, with these outpost offices incurring significant setup and maintenance costs,

they are often run by relatively small teams to keep the wage bill under control.

In theory, the local staff members are there to fully focus on sales activities, with many of the other support processes and activities (HR, IT etc.) supported remotely. In this scenario, it’s vitally important to ensure the sales force are actually able to focus on what they are there to do. Unfortunately, it’s quite often the case that employees in satellite sales offices are kept busy with all manner of non-sales related local activities. Rather than focusing fully on delivering cash, they are committed to organizing and completing the tasks necessary to keep the operation on its feet.

Plan, plan and plan again To avoid this situation, foreign sales locations need to have solid process structure in place. It shouldn’t be thought out and planned on-site, but put in place by HQ. Think, for example, of the way in which customer information and contacts are managed, or the way in which the financial administration is conducted. The parent organization needs to take the lead to ensure efficient deployment and full focus on sales from the off. The success of a foreign presence depends largely on how effectively the personnel there can contact, impress and remain available to the local market, in addition to how effectively the central

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operations with multiple sites often struggle to create uniform ways of working. And the more locations you have, the more complex it gets, and more difficult it gets to realistically manage company-wide performance. As such, it’s very important that businesses try to think about how common practices can be standardized from the word go. It’s much easier to retain a clear picture of what’s going on if all parties are creating parallel reports, instead of engineering their own ever-growing library of spreadsheets that need to be decoded by HQ. support act can supply the services they require to get the job done.

It’s easier to start standardized Worryingly, the standardization and automation of business activities across international operations is sometimes overlooked during the set up phase of new locations. The result of this is that many processes end up being developed on site and carried out by hand. This in turn leads to things taking longer than they need to, and to human error led mistakes that eat time and money.

All kinds of spreadsheet solutions end up being created to try and couple and integrate various processes and flows.

It’s a very weak base from which to begin, with the reports and overviews created from this irregular information unable to grow effectively in line with the business’ development.

More locations, more problems Given this ad hoc approach, it’s not surprising that fledgling international

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Understand requirements in detail, and match them to the right systems For new offices, often with new employees, getting up and running quickly is hard. The questions during the initial phases are many. How are we going to manage customer contact?

Which leads need to be followed up, when and in what way? How do we maintain insight into our current opportunities? Which quotes are currently with prospects? What is the current status of our completed orders?

When are certain products available and not available? How are we going to manage after-sales activities? How will we ensure we fully abide by local legislation? What are we going to do to stay on top of our outstanding items?

If the business is going to succeed, all these questions need concrete answers.

If employees are left to search for them while also trying to get the revenue stream going, it’s likely they’ll have

Strategy

little time to discover anything useful.

Without the right tooling in place and understood from the word go, getting a grip on this issues will likely remain an unending challenge.

Protecting delivery reliability Protecting delivery reliability and efficiently managing the supply chain as the business grows is difficult for any expanding business, let alone one doing it across borders. Insufficient insight or sub-optimal process organization can lead to blockages, local pooling of stock or unnecessary reservations, all of which can have a dramatic negative effect on working capital.

Ineffective or mis-communication between subsidiaries and the head office is often a major factor in this. If it’s not clear where specific responsibilities lie, a great deal of extra work is often the result. Endless phone calls and e-mails aiming to get things organized then often make things worse, missing important information that’s required for orders to be processed accurately and effectively.

The danger is particularly apparent when companies make use of shared service centers where sales support is centralized per region or time zone, and where logistic service providers are responsible for the physical completion

“For new offices, often with new employees, getting up and running quickly is hard”

of sales orders. The number of return orders and credit notes is a good indicator of how effectively this supply network is running.

Boosting communication When a company runs sales offices that are not purely self-supporting, the lack of in-house support for HR, financial, IT and other processes can quickly become a limiting factor. On a purely physical basis, it’s often simply not possible to ‘walk by’ a colleague from another department to get some extra information or an answer to a specific question. If the right systems aren’t in place to ensure people have access to the support they need, employees will not only have to deal with continually unresolved issues, but will miss valuable interaction with the rest of the business.

Insight into stock and order information The right balance between tying capital up on shelves and being able to meet orders is extremely challenging to achieve, but certainly a key aspect of creating a genuinely profitable operation. The confidence that getting it right inspires in your sales personnel is an important part of this. If they feel that delivering on time is under threat, they tend to start thinking of creative (and usually unhelpful) ways to keep their promises and protect customer relationships. These can include reserving stock up front, storing up products in local depots, ordering more items than is necessary despite expiry risk, or artificially pulling forward delivery dates. With this in mind, it’s essential that businesses invest in creating trustworthy,

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“Setting up a satellite operation is a significant investment step for any company” transparent processes around stock and stock insight. All sales personnel need to be confident that the data they’re seeing is up to date and completely trustworthy.

Being able to track order status creates confidence around the office, strengthens its position in the supply chain and reduces unnecessary communication.

Complex administration causes problems Managing administrative tasks is, for many sales employees, a challenge. As a result, agreements and conversations with customers can fail to be recorded properly, making it difficult for every stakeholder to have access to all the information that’s relevant or useful to them. When details only exist in the heads of employees, in e-mail inboxes or piles of unfiled note papers, it’s difficult to be confident that people are always making good decisions.

Difficulties take longer to address, some opportunities be missed altogether. And if it’s a customer that reports the problem, that’s then a relationship issue with further implications. Not a great situation for any operation already running on a thin margin.

Once is enough Double work also needs to be avoided, particularly when it comes to registering and confirming orders (and deliveries),

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and ensuring they are processed correctly by finance. This often involves all manner of templates created for the sales organization to fill in, initialed and signed off further up the chain, and then manually entered by back office personnel – possibly in a system not directly linked to the financial administration.

In these scenarios, ensuring timely, accurate communication between sales in one location and administration in another is extremely important. It’s also important that everyone has an extremely clear picture of their and their colleagues’ responsibilities. Maybe HQ will handle all the paperwork. Maybe the sales office needs to deal with purchase documentation once the goods have been delivered to the end customer. Who will then use that information in creating the sales invoice and booking away the outstanding item with the supplier? How do both sides ensure they both know what’s going on at all times? It’s not difficult to imagine that uncertainty here can lead to a lot of time on the phone.

And when sales personnel are busy with these activities, they’re not busy with creating new deals.

Uniformity and consistency Setting up a satellite operation is a significant investment step for any company, particularly if there are multiple new sites on the agenda. Dispersed operations can see significant differences in work culture within one organization, local dynamics making it difficult to achieve uniformity and consistency in company-wide work processes. To be successful, all employees need to a

Strategy

“IT support is a critical aspect. The software system in place needs to be both powerful and flexible” clear, consistent approach to organizing, implementing and completing their work.

Without it, individuals will start building in their own security mechanisms to protect commitments. These might help them in the short term, but overall, it decreases the real execution power of the business. Organizations help themselves if they approach each new venture in the same way. In addition to the operational procedures, the way in which each location reports – not only financial data, but in terms of sales and other operational information – will be extremely important in steering the business through the first phases of expansion. Consistency is the key ensuring the company can learn as it grows, helping each new set-up to benefit from the experiences of the last. Once a problem is encountered anywhere in the business, it’s then easier to access the knowledge and experience required to remedy it.

wide range of influencing factors and relevant information streams mean that the software system in place needs to be both powerful and flexible. The choices are wide, ranging from best of suite solutions offering everything under one lid, to best of breed applications for specific business processes that can potentially be integrated to offer complete coverage. Your current vendor will likely have a plausible story on how to manage an international operation with their solutions. However, whatever that may be, there are a number of important points to be kept in mind when considering how to set up your systems.

The fit with your organization In the broadest sense, it’s important to consider how the available business solutions fit to the shape of your

Creating the right infrastructure Given the difficulties outlined above, how can companies go about giving their new offices the best chance of success?

How should they go about managing costs and delivering margin while still ensuring the business offers the service level customers will require?

IT support is a critical aspect. The

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“Good interaction between all data across the entire business provides a level of control and understanding that can promote genuine time and costs savings” organization. What are the specific challenges and needs that you’ve identified for your international offices?

Critical questioning of your (possible) supplier on these points is essential if you’re to properly evaluate their ability to successfully address your pain points. Be sure to request and then dive into cases they have successfully rolled out in the past with businesses that mirror yours.

Endless choice The vendor landscape is already broad, with further developments continuing at pace. Given the range and complexity available, take care to consider both ends of the functionality/price spectrum.

Although one presentation may suggest a chauffeur-driven limo is the only way to travel, it could be that a compact city model will suit your needs just as well.

Finding the right balance between cost, implementation time and functionality is a daunting challenge. Tackling it effectively will again rely on a detailed, prioritized overview of the business processes that need to be supported.

Look for a partner, not a supplier In addition to functionality, it’s also important to look carefully at the vision and philosophy of the vendor and their availability across the regions where you plan to operate. How do they go about exploring potential solutions with

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you? Are they thinking with you or for themselves? Are they present where you’ll be doing business, or will you be working with a partner network?

How will this affect your operation when you need help? Who will do the implementation and follow up? Will that be handled centrally or locally? Who will be your direct contact person? Will they have the power to make decisions in effective timeframes, or will you continually be waiting for the answers to local escalations? There’s certainly plenty to think about. Try to think of concrete examples of issues that might arise, and explore how they would approach fixing them.

Standardization, localization In many cases, the appropriate balance of cost/functionality brings an out-the-box solution to the fore – business software that’s more or less ready to go without a great deal of customization work.

Often modular in nature, they allow IT coverage to be expanded systematically – the standardized units of functionality rolled out with the minimum of time and effort. This building block approach usually allows full integration of all functionality, taking out the problems associated with getting best of breed solutions to ‘talk to each other’. With all information in one system, data leakage is minimized. This increases reporting

Strategy

power without the need to call in external experts to collate and interpret data from disparate systems.

In terms of differentiating between these best of suite vendors, their ability to fit tightly with each of your international locations will be the differentiator. Be sure to look carefully at their support for local legislations, multiple languages in the interface and help documentation, and handling of master data from international operations like banking and taxation.

Front office integration Not everything that you pin down within your organization is necessarily transaction related in the way that orders, invoices and payments are.

Think for example about CRM, HR, document management, project administration and service management activities. Having dedicated systems in place to manage these activities also generates data that can be useful to review and integrate with back office processes. This gives extra depth to your company overviews, greater insight into customer activities, better monitoring of non-transaction related processes, and improved

sharing of information throughout your ecosystem of customers, partners, suppliers and employees.

Conclusion Good interaction between all data across the entire business provides a level of control and understanding that can promote genuine time and costs savings.

When considering how to ensure this remains the case when new international operations are added, it’s essential that new offices remain connected to the rest of the business. If key business support processes are not available on location, your IT system becomes responsible for ensuring all relevant information remains available to all stakeholders at all times. Having this level interaction will help ensure mistakes and delays are kept to a minimum, and that money isn’t continually draining away as employees struggle to manage suboptimal processes. Ensuring the business is well organized and creates transparent management information will enable sales teams to create success in their core tasks – delivering revenue to the business and creating the growth that was the basis for their establishment in the first place.

About the author Exact develop ERP, CRM, HR, financial and industry-specific business software for more than 100,000 customers around the world. Based in the Netherlands, where they remain market leader in the SMB segment, their on-premise, hosted and cloud solutions focus primarily on manufacturing, wholesale & distribution, professional services and accountancy companies. With offices across Europe, Asia, Australia and America, their internationally oriented products combine with local support to offer real customer value. Read more Exact business insights at: www.the-biz-box.com

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Shale gas: The

Having been looked at from all sides, become irresistible to the countr Words by

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John

Shale gas

game changer

, the case for shale gas extraction has ries fortunate enough to have it

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Shale gas

C

lassed as unconventional gas along with coalbed methane and so called ‘tight’ gas, shale gas is fast heading out of that category. In the USA it has already had a significant and irreversible effect on the economy, as evidenced by a recent report from consulting firm IHS which says the boom in domestic energy now directly or indirectly supports 1.2 million jobs and adds more than $1,200 to average disposable income – and that these figures will increase to 3.3 million jobs and $2,000 per household by 2020.

Technologies like hydraulic fracturing and horizontal drilling, which make it practical to recover previously unused oil reserves, have helped drive a 58 percent increase in natural gas reserves since 2007, cut the price of natural gas by nearly three-fourths, and sparked more than $120 billion in US based investment last year, according to the report.

With 665 trillion cubic feet (tcf) of technically recoverable shale gas (that is, gas accessible with current technology) the USA comes in fourth behind China, Argentina and Algeria, according to The United States Energy Information Administration (EIA). For the USA, though, the principal benefit is that shale gas looks like finally severing its dependence on imported hydrocarbons.

Whether it’s in the UK, China or South Africa, all this upside depends on the use of hydraulic fracturing.

Fracking has to be a contender for the most emotive word of 2013. On the one hand it could be a solution to the world’s energy problems, at least in the short term and potentially the stopgap that will allow us to enjoy cheap energy until the utopia of renewable self sufficiency makes fossil fuel a bad memory. On the other it will kill vegetation, pollute water sources and accelerate global warming. The famous earthquakes are the least of the publicly-aired problems.

However it is not a new technology, in fact dating back to the late 1940s.

Fracking has a lot of advantages over conventional O&G development because it has a low surface impact, and once a well has been drilled it will go on producing for decades with very little maintenance. The tremors, if felt at all, will be insignificant to those associated with ‘retreat’ coal mining which has left its mark on the English Midlands. Environmental hazards are more serious, with the possibility of watercourse pollution and the escape of gas to the surface. With clear regulation and the adoption of well understood practices by the industry it should be possible to avoid the problems that have been reported in the USA.

“If the revolution continues in the US and extends to the rest of the world, energy consumers can anticipate a future dominated by cheap gas” Paul Stevens

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Cuadrilla operations at Anna’s Road in Lancashire

Shale gas

“Shale gas could potentially meet a third of the UK’s gas demand with a very small surface footprint, benefiting the environment at the same time” IoD The USA is becoming the benchmark for other countries fortunate enough to have significant shale gas reserves.

The EIA made a first pass estimate of a technically recoverable resource of 485 tcf of gas in South Africa’s Karoo Basin shale beds. Exactly how much of this is recoverable is not certain, but drilling and geophysical surveying is going ahead. As Mthozami Xiphu, Executive Director of the South Africa Oil & Gas Alliance (SAOGA) points out, even if the Karoo reserves amount to no more than 20 or 30 tcf their significance would be massive. “If we get a hundred or multiples of a hundred tcf we are looking at a game changer for energy in South Africa over the next ten years!”

In the UK, according to an Infrastructure for Business report published this year by the Institute of Directors (IoD), “shale gas could represent a multi-billion pound investment, create tens of thousands of jobs, reduce imports, generate significant tax revenue and support British manufacturing. It could potentially meet a third of the UK’s gas demand with a very small surface footprint, benefiting the environment at the same time.” This on a very conservative estimate of UK reserves (see Francis Egan’s comments) at between 853 and 1,389 billion cubic feet (bcf). The IoD

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foresees 74,000 UK jobs supported by the industry; and “just as importantly, shale gas could support jobs in the chemical industry and wider manufacturing by providing secure energy and important feedstocks. This could help the UK to make more. In the US, PwC and Citi have estimated that at least one million new manufacturing jobs could be created over the next decade.” Britain would also share America’s energy security, with dependency on imports reduced from 76% to 37% in 2030, while the cost of net gas imports in 2030 could fall from £15.6 billion to £7.5 billion (using 2012 prices).

Energy security is as important as energy cost – though there’s no telling how disrupting the finely balanced global O&G markets will impact global political relations. In a Chatham House report The Shale Gas Revolution: Hype and Reality published at the end of 2012 Professor Paul Stevens warns that the US ‘shale gas revolution’ has created huge uncertainties for international gas markets. “If the revolution continues in the US and extends to the rest of the world, energy consumers can anticipate a future dominated by cheap gas.

However if it falters and the current hype about shale gas proves an illusion, the world will face serious gas shortages in the medium term.”

The case for UK shale gas Words by Francis Egan

T

he potential to extract natural gas from shale onshore in the UK is an opportunity that goes beyond helping to secure Britain’s gas supply. This valuable resource can create jobs and provide economic benefits on a local and national scale.

The British Geological Survey recently published its estimate for the potential amount of shale gas in northern England, saying that there is 1,300 trillion cubic feet stored within the Bowland Shale Formation. If we can extract just ten per cent of this resource, it could meet the UK’s current gas demand for more than 40 years. Furthermore, at today’s gas prices, this recoverable ten per cent would have a market value of almost £1 trillion. With tax revenues from North Sea production in decline, Deloitte predicts a fall from £11.2 billion in 2011-12 to £3.7 billion in 2017-18, onshore gas production will help fill this gap by providing valuable funds to the Treasury.

The United Kingdom needs sustained economic growth of which job creation will play a key part. The Institute of Directors, in its recent report ‘Getting Shale Gas Working’ predicted that shale gas development could create 74,000 new jobs, spanning a wide range of disciplines including geology, drilling, accounting, IT, construction and many others.

The UK has the engineering, health, safety and environmental expertise, together with a robust regulatory

framework, to develop its shale gas resources in a safe and responsible fashion. We have a great opportunity to become a world leader in shale gas development as long as we successfully tackle the unfounded scare stories concerning hydraulic fracturing. And Britain too would enjoy a huge energy security dividend.

Finally local communities will also benefit financially from potentially transformative funds in areas of shale gas production. Communities will receive £100,000 for every exploration well site that is hydraulically fractured in addition to one per cent of revenues from future shale gas production. This could equate to over £1 billion over a 20 to 30 year production timescale in Cuadrilla’s Bowland Basin licence area alone.

The business case for the safe, responsible and effective extraction of shale gas is solid and can generate real and long-lasting benefits for the UK. We need to get on with the job in hand of understanding exactly how much natural gas stored in shale rocks thousands of feet underground can be viably extracted.

Francis Egan is CEO of Cuadrilla Resources, an independent UK energy company led by a team of experts in unconventional sources of exploration. www.cuadrillaresources.com

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industry focus:

Overcoming Chief Executive of DECOM North Sea, Brian Nixon, discusses the recent DECOM Offshore 2013 event and how its outcomes exceeded everyone’s expectations 50 | BE Europe

DECOM Offshore 2013

g obstacles

O

n 27 March 2013, the Aberdeen Exhibition and Conference Centre played host to the first DECOM Offshore event. Conceived and hosted by DECOM North Sea, the aim of this interactive event was to advise the decommissioning supply chain of the challenges that operators and tier 1 contractors face when undertaking an

offshore decommissioning project.

A mixture of interactive plenary sessions, exhibition space and 1-2-1 opportunities, the event was also there to inform the aforementioned operators and contractors of the many innovative solutions and techniques that the supply chain of today has to offer to address the challenges they face and how by rallying together the industry can start to reap the rewards of the

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industry focus:

“The feedback we have had so far has been very positive indeed and bodes extremely well for future events” multi-billion pound business opportunity that is North Sea decommissioning.

“This event came together as a result of the efforts of our industry members and their desire to have a collaborative, collective view from across the sector as to what the key challenges are for the decommissioning sector and how these can be overcome,” explains Chief Executive of DECOM North Sea, Brian Nixon.

For its part, DECOM North Sea went about the task of encouraging a group of operators and contractors to put forward a comprehensive review of the said challenges and divide them into four different areas of the decommissioning programme. The first of these is the sub-surface area, which relates to work conducted below the seabed and the particular obstacles that are aligned to the plugging and abandoning of many thousands of wells in the North Sea. The feedback DECOM North Sea has received from some of these early projects indicates that they are taking longer, costing more and presenting more technical challenges than had been anticipated; and this needs to be addressed urgently.

The second area of interest relates to the subsea environment between the water line and the seabed. It is here that there is an

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enormous amount of infrastructure ranging from pipelines to manifolds, production systems, umbilicals, risers and mooring systems, all of which have to be removed and decommissioned.

The third area of debate at DECOM Offshore looked specifically at infrastructure removals and the challenges that accompany the removal of topside structures, integrated production platforms and mainly steel jackets, while the fourth looked at onshore disposal, namely the dismantling, treatment and recycling of equipment removed from the North Sea. “The strap line of the event,” Nixon continues, “was to ‘Confront Challenges and Create Opportunities’, so in addition to getting an agreed list of the challenges that we must collectively work to overcome, one of the principle aims of the event was to provide individual companies with clear understanding and confidence as it relates to the business opportunities that these challenges present. Our steadfast belief is that for each challenge our industry faces there is an equal opportunity for a certain type of company to come forward with innovations or solutions to remedy the situation and prosper from it.”

With DECOM Offshore 2013 complete,

Credit: Graham Scott, geograph.org.uk

DECOM Offshore 2013

Aberdeen Exhibition & Conference Centre

Nixon at last has the chance “I think what was also to reflect on how the event encou rag i ng,” Ni xon played out and what positives concludes, “is that we saw can be taken from it. “We a good representation of companies who are more or were absolutely delighted Delegates appeared at with not only how the event less new to the sector and DECOM Offshore 2013 who were using the event to played out but also the initial reactions we have received clarify or confirm what their business opportunities are, from attendees. Being an inaugural event naturally meant that there and then package their service offering or technology to make it absolutely suitable was an element of risk involved in staging such a large gathering, not least from a for the decommissioning sector. So the financial and reputational perspective, but feedback we have had so far has been very the results have exceeded our expectations.” positive indeed and bodes extremely well Indeed, while the organisation went into for future events.”

DECOM Offshore expecting to attract around 150 delegates, the final total was more than For more information about 200, a fact that Nixon sees as proof of the DECOM Offshore 2013 visit: overwhelming support the industry has for www.decomnorthsea.com the decommissioning sector.

200+

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industry focus:

The seas

of change Set up to tackle the main areas of weakness inhibiting UK decommissioning supply-chain capability, DECOM North Sea is working to help drive forward an industry sector estimated to be worth in excess of ÂŁ35 billion over 30 years

written by: Will Daynes research by: Adam Kalynuk

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DECOM North Sea

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industry focus:

DECOM North Sea

B

rian Nixon has spent most of his career working for major engineering contractors. Around 25 years of his career to be exact, roughly half of those years spent in the upstream, offshore sector, with the rest in the downstream, onshore market.

Following this he spent a period of some eight years as the Director of Energy for Scottish Enterprise. “In this particular role,” he states, “I held a pan-energy role setting the strategic direction for the organisations investment plans across the whole of the energy sector. In doing so my attention was drawn to the offshore decommissioning market.”

It was three years ago that Nixon was subsequently approached to head up a new organisation whose efforts would be focused solely on this particular industry as Chief Executive of DECOM North Sea. “This organisation,” Nixon continues, “came about as a result of sustained consultation with the industry, a consultation that was facilitated

by UK and Scottish government agencies that was driven by their recognition that a major programme of decommissioning activity was ramping up in the North Sea.” As Nixon points out, while the thought process behind decommissioning activities has been well documented, and there has been a long-held understanding that all offshore structures will one day have to be removed at the end of their economic lives, the industry has until now been very good at deferring the start of such work, mostly through the application of new technology or enhanced drilling techniques.

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THE QUALITY OF THE ENVIRONMENT AFFECTS US ALL, CLEAN AIR AND CLEAN WATER IS ESSENTIAL TO LIFE AND IT IS INCUMBENT ON ALL OF US TO ENSURE THAT WE DO OUR BEST TO MAINTAIN THEM

Armstrong York are driven by this commitment and by the knowledge that our country is still full of dangerous, hazardous and potentially lethal materials and is a legacy that we must not leave for our children to resolve.

The management team at Armstrong York has extensive experience of working in petrochemical and heavy industry environments providing a range of services to major oil and refinery companies within the United Kingdom. On-site support services are a critical factor in the successful relationships with our clients ensuring their core businesses are operated in a safe and efficient manner.

The provision of asbestos management support services to the petrochemical industry and other major industries can be divided into four key areas of service delivery: • Management Support • Asbestos Surveying • Air Monitoring • Response With a particular emphasis on Health and Safety Armstrong York has received major Awards and are justifiably proud that the company’s health and safety record is second to none.

For more information about the services Armstrong York offer please call Kelly Hadley on 0870 3500 375 or visit www.armstrong-york.com

industry focus:

DECOM North Sea

It was a year-long Armstrong York consultation process with For over six years Armstrong York have been working in the industry and various partnership with BP Oil UK, Petroplus & Vopak overseeing government agencies that and managing all maintenance activities and providing brought about numerous specialist services at their Coryton Refinery on Canvey recommendations about Island in Essex. Petroplus’s core business is refining crude what was needed to oil into various petroleum products making the inspection of the plant and equipment at the Refinery critical to their spur activ it y in the core business. decommissioning sector, Through the provision of a comprehensive range of vital the most important being asbestos management support services Armstrong York the belief that it required support this core business activity by ensuring that the an independent, totally Refinery operates in a safe manner ensuring all necessary focused industry forum and safety precautions and procedures are implemented that is where DECOM North maintained and continually reviewed. www.armstrong-york.com Sea came from.

Three years down the line and the organisation has evolved to the point where it has some 220 member companies and is moving forward to stimulate a vibrant, efficient and cost effective industry in order to capture the economic benefits that this substantial program of work has to offer.

“Our membership portfolio,” Nixon says, “was always intended to encompass the whole of the oil and gas industry and as such we have worked very hard to achieve and sustain this. Today our members include the

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SQUIBB GROUP Having established a formidable reputation as one of the premier demolition contractors in its native United Kingdom, Squibb Group has evolved to become a major global force across the controlled demolition and dismantling sectors, taking its knowledge and experience across Europe and into the Middle East regions.

www.squibbgroup.com

After years of successful oil and gas production, many of the structures in the North Sea are coming to the end of their expected lifespan and under current legislation, over 90% of these structures need to be completely removed and brought on-shore for reuse or re-cycling. This represents a huge challenge to the industry and Squibb Group, as an affiliated member of Decom North Sea, are working closely with industry regulators and government bodies to assess and formulate effective contracting strategies for the removal of these structures in a technically feasible and safe manner.

With extensive onshore and off-shore experience, Squibb Group are committed to developing technically innovative solutions which recognise and address environmental concerns, health and safety of personnel and costs.

• Dismantling • Decommissioning • Asbestos Removal • Demolition • Temp Works Design • Recycling • Engineering Design • Decontamination • Asset Recovery • Project Management

SQUIBB GROUP DEMOLITION CONTRACTORS UK BASED EXPERT CONTROLLED DEMOLITION COMPANY

industry focus:

DECOM North Sea

“We do a raft of different things to provide our members with a range of benefits” owners and operators of offshore facilities, major first tier contractors and a raft of specialist service providers, consultants and professional services providers.”

DECOM North Sea, being a membership organisation, strives to deliver a wide range of benefits to its individual members to illustrate to them what value they are getting from their fee. “We do a raft of different things to try and work with our members individually and collectively to provide them with a range of benefits,”

Nixon highlights. “This includes hosting networking events, conferences, what we call learning journeys and research visits to regions like Norway, the Netherlands and Denmark where we learn about decommissioning activity in these regions and Squibb Group explore the potential for Squibb Group started work in the Oil & Gas/Petrochemical collaboration and sharing of industry in the 1970’s at the Thames hinterland refineries experience and ideas.” of Coryton, Shellhaven and Canvey Island, eventually As Nixon has stated, becoming a “partner” to Mobil Oil. Amongst some of while the concept of the major projects undertaken was the demolition of a decommissioning is well Catalytic cracker column, in which Squibb became the first contractor to utilise a tower crane for such a project. known, there are few Feasibility studies have been conducted for Kinsail companies and indeed covering the removal of several gas platforms in the South few people who have Irish Sea and having recently extended its services into practical experience of a the Nuclear industry, Squibb Group have been awarded decommissioning project. a framework agreement with Magnox for demolition and “As an industry we are decontamination of their Nuclear Plants across the UK. still at a very early stage www.squibbgroup.com of learning, so in terms of

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focus

Decommissioning ADDRESSING THE CHEMICAL NEEDS OF THE DECOMMISSIONING INDUSTRY, ROEMEX LIMITED INTRODUCE THREE TAILORED CHEMICAL SOLUTIONS...

RX-7892 Wax Remover RX-7846 Hydrocarbon Remover RX-7821 Scale Remover

ROEMEX LIMITED

SPECIALITY OILFIELD CHEMICALS

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ALL PRODUCTS CEFAS REGISTERED GOLD WITH NO SUBSTITUTION WARNING

FOR MORE INFORMATION PLEASE CONTACT SALES:

Tel: +44 (0) 1224 783444 Email: enquiries@roemex.com

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Seen www.bus-ex.com

industry focus:

DECOM North Sea

efficiency, the development of models, the beginning of Roemex Limited is a privately owned, independent oilfield cost reduction, this will only chemical company with its headquarters in Aberdeen, be achieved once we get into Scotland. We have designed, manufactured and supplied a more sustained programme speciality chemicals to the worldwide oil and gas industry of decom m ission i ng for over twenty-years. projects. There is a lot of Adding to the existing product ranges for Completion, Production and Hydrotesting operations is the NEW learning going on and that Decommissioning product range, which is aimed specifically is one of the central roles at the Decommissioning market. These products, all of of DECOM North Sea: to which are classified as ‘Gold’ and carry no substitution share experience from warning, are designed to clean, de-wax and de-scale flow past projects; share what lines and process equipment. Please contact we anticipate about future Duncan Baillie for further information. market activity; how we duncan@roemex.com believe projects are likely to be approached; what strategies will be adopted; how companies will allocate work; how they will control risks - and generally try to help new companies to the market understand what their business opportunities are.”

There is no doubt in Nixon’s mind that the next few years are going to be very interesting with the decommissioning industry set to adopt several different approaches to future projects. One of these will be what is dubbed the piece small approach, whereby once the platform and its facilities have been cleaned of all

Roemex Limited

£35 billion Estimated value of the North Sea decommissioning sector

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KDC is a market leader in decommissioning, demolition and land remediation, prioritising safe delivery and helping our customers realise value from their assets. We serve the oil, gas and process markets on shore and offshore. We are also market leaders in the chemical, pharmaceutical, nuclear; energy and natural resources, and utility markets.

We specialise in delivering “end of asset life� and land remediation solutions, providing competitive decommissioning services including strategy development, hazard characterisation, decontamination, de-planting, asset appraisal and disposal and demolition. Our focus is exemplary Safety, Health and Environmental performance to protect our own and our customers’ people and other stakeholders.

Our people make the seemingly impossible possible.

Nigel Jenkins, Sales and Marketing Director nigel.jenkins@kdc.c.uk www.kdc.co.uk

DECOM North Sea

industry focus:

hydrocarbons and hazardous waste it is The third and final approach, which in taken apart using hydraulic shears. The fact has yet to be adopted by companies but small pieces are then placed in open top is a source of considerable interest within the containers on supply boats and taken sector involves the construction of a super ashore for recycling. heavy lift vessel, which is due to come to A further option that is regularly used is market around the spring/summer of 2014. called reverse installation This vessel will have a lifting capacity of approximately where separate modules of 44,000 tonnes, thus having a platform or facility are the potential to lift complete cleaned and removed using topsides or jacket structures. a heavy lift crane. These “If this vessel is to realise are then taken by barge to meet the same fate described its potential,� Nixon says, “it Members of DECOM North Sea during the piece small could result in a significant approach. step change in how the

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industry focus:

DECOM North Sea industry goes about its business, with literally hundreds of man hours being transferred from an offshore environment to onshore locations. Operators clearly see a lot of benefits to such a situation, for example the positive effects it will have on safety performance, environment controls and cost containment.”

Nevertheless, such a development will not be without its complications, posing as it does a number of questions relating to how one would go about freeing such a large structure of hydrocarbons and environment and hazardous waste, and how one would get access to beginning the subsequent demolition process.

This represents just one of the many challenges that the decommissioning sector will undoubtedly have to deal with as it ramps up in the years ahead, but as Nixon concludes, the sheer amount of work and opportunities that lie ahead makes such obstacles well worth finding a way around.

“A major production platform in the central or northern North Sea can take in excess of ten years to be decommissioned. This clearly requires a great deal of work to accomplish and the scale of work ahead can really be put into perspective when you think that in the case of the Shell Brent Field alone, it is thought that the decommissioning of the field will take longer and cost more than it took to design and build in the first place.”

For more information about DECOM North Sea visit: www.decomnorthsea.com

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industry focus:

written by: Will Daynes | research by: Adam Kalynuk

Boskalis Offshore is the driving force behind the offsho activities of Royal Boskalis Westminster NV, one of the figures within the maritime sector for the last 100 year

A century of s 68 | BE Europe

Boskalis Offshore

k

ore energy leading rs

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industry focus:

Boskalis Offshore

E

Removal of an offshore platform

ven since a group of families went about setting up a new dredging business in 1910, Royal Boskalis Westminster NV has built itself a commanding reputation for being a leading global maritime services company operating in the fields of dredging, inland infrastructure, towage, salvage and offshore energy.

Operational in more than 75 countries across six continents with an employee base of around 15,600 people and a fleet of more than 1,100 vessels and equipment, Boskalis’ main clients today include port operators, governments, shipping companies, mining companies, international project developers and oil companies.

Boskalis Offshore is a part of Royal Boskalis Westminster NV, and in its own right is a leading expert in offshore contracting and services. The company supports the activities of the international energy sector, including oil and gas companies and providers of renewable energy such as wind, by offering its customers innovative and competitive solutions, including new installation and improved workability concepts.

Today one will find Boskalis Offshore involved in the development, construction, maintenance and decommissioning of oil and LNG import and export facilities, offshore platforms, pipelines and cables, as well as offshore wind farms. In conducting its work the company leverages its vast expertise, which covers offshore pipeline, cable and rock installation, heavy transport, lifting and installation work, as well as diving and ROV services.

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industry focus:

The work that Boskalis Offshore is doing falls in line with its impressive track record of project delivery that includes a variety of highly demanding energy projects. This legacy of stepping up the challenges of its customers remains intact to this day and was the driving force behind the decision to expand further through the incorporation of the former heavy lift and subsea activities of its subsidiary SMIT in 2012. This move represented another step towards Boskalis Offshore becoming very much a one-stop solutions provider that can provide services across each phase of a project.

Boskalis Offshore’s services are performed by its four subdivisions, these being Subsea Contracting, Subsea Services, Marine Services and Marine Contracting. The company’s Subsea Contracting team works specifically with landfall solutions, trenching and backfilling, and rock and cable installation, while Subsea Services focuses on tasks such as air/saturation diving and ROVs, subsea construction and removal and inspection, repair and maintenance works.

The company’s Marine Services subdivision serves the market with chartering of anchor handling tugs (AHTs), barges and sheer legs, and complementary maritime project management and engineering. Finally the

Marine Contracting section of the business offers clients an integrated package on the basis of transport and installation (T&I) or engineering, procurement, construction and installation (EPCI) of marine infrastructure and decommissioning projects. Such projects include fixed offshore structures like platforms, offshore wind farms and tidal installation, and floating offshore structures including SPM buoys and FPSOs.

“For the near term we have a well-filled order book with many projects across all of our disciplines” 72 | BE Europe

Boskalis Offshore

Bosk a lis Of fshore’s Schoenmaeckers, Manager marine contracting activities for Oil and Gas, “involved the bring together various removal and disposal of two platforms and one subsea fields of expertise to create comprehensive, cost-effective dome in the North Sea as a Countries that Boskalis is solutions that are specifically major contractor on a lump present within today tailored to the customers’ sum basis. Decommissioning is a key focus for the Marine requirements. All of its Cont rac t ing business. endeavours are based on maintaining close contact with its customers We believe that with our knowledge, and a consistently high level of service to experience, and assets we can play a create a mutually beneficial and productive key role in the coming decommissioning requirements from the market.” working environment.

Boskalis Offshore Marine Contracting While the company is more than capable of certainly has a strong track record when providing integral decommissioning packages it comes to the decommissioning of both including preparatory removal works with floating and fixed offshore structures. its diving support vessels (DSVs), lifting and “A recent project,” explains Michiel transport of the platforms with its sheer

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industry focus:

The platform is brought to shore for decommissioning

Boskalis Offshore legs and marine vessels, and disposal with its partners, challenges do remain.

“The main challenges stem from obtaining complete and accurate data of the current facility status,” Schoenmaeckers continues.

“Many assets have had several owners throughout the value chain, and consequently facility data regarding installations and alterations can be difficult to retrieve.”

Nevertheless, the company is striving to overcome these difficulties and in doing so has placed itself in a strong position for both short and long-term growth. “For the near term we have a well-filled order book with many projects across all of our disciplines,” Schoenmaeckers states. “This includes the West of Duddon Sands offshore wind farm project in the Irish Sea for DONG Energy and Scottish Power Renewables, various rock installation works for companies including Statoil, subsea inspection and maintenance contracts for companies like Maersk Oil, and a substantial offshore contract with Impex for the Ichthys LNG project in Australia.”

Meanwhile moves have been made by Boskalis to further strengthen and expand its range of services for the offshore energy sector through the acquisition of Dockwise, a provider of maritime services including transport services to the offshore and onshore industries and installation of extremely heavy

offshore platforms, and is now planning to incorporate this into its business.

The combination of activities will place Boskalis in a better position to service clients with the optimal deployment of people and equipment, and enable it to fast track its ambition to enhance its capabilities with regard to transport and installation projects. It goes without saying that at the same time Boskalis Offshore will work to stay true to the qualities and strengths that have defined Royal Boskalis Westminster NV for over a century.

For more information about Boskalis Offshore visit: www.boskalis.com

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industry focus:

Dedicated to decommissioning Boutique engineering consultancy Optimus has developed a unique approach to decommissioning that is garnering growing recognition among operators

written by: Will Daynes research by: Adam Kalynuk

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Optimus (Aberdeen) Limited

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industry focus:

F

ew companies can provide a dedicated team-led approach to decommissioning like Optimus.

The Aberdeen-based oil and gas engineering consultancy has gone from strength to strength since it launched Optimus Decom in 2010, a subsidiary established to meet growing demand for its engineering services for the decommissioning of on and offshore oil and gas facilities.

The company has built up a select team of specialists with all of the relevant skills necessary to provide support throughout the decommissioning process, from assessing liabilities and analysing the engineering options to final decommissioning project management, and is working to develop a full turnkey solution for the decommissioning of facilities.

Stuart Heggie, decommissioning team lead, said: “Rather than acting as a small decommissioning group that pulls in specific resources from outside sources, we are building a dedicated team of people with skills in all the relevant disciplines who share a collected understanding of the industry’s priorities. We are approaching decommissioning work differently, by having focused engineers in-house rather than sourced from third parties, and the huge benefits of this are increasingly being recognised by a growing band of operators.”

The team has experience in supporting a number of operators and other energy service companies, including Talisman, ConocoPhillips, BP and Wood Group.

Optimus’ expertise in the decommissioning field led industry body Decom North Sea to select it as the only engineering consultancy

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Optimus currently performs a wide range of services associated with the onshore and offshore oil and gas industry

Optimus (Aberdeen) Limited

industry focus:

ÂŁ30 Billion Modest estimate of how much will be spent on decommissioning in the next 30 years

Optimus can offer an integrated approach to the decommissioning of offshore platforms, pipelines and subsea assets

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in its workgroup set up to help streamline the approvals process by reducing both costs and timescales for decommissioning work. The new standard template devised by the group has simplified the preparation and approvals process, which is highly welcomed by the industry as decommissioning work starts to take off in the UK North Sea. More than ÂŁ30 billion will be spent in the next 20 to 30 years in the field of decommissioning, according to modest estimates. Around 460 installations, over 10,000 kilometres of pipeline and 10,000 wells are set to be decommissioned in the UK North Sea over the next three decades.

Some ÂŁ1 billion is expected to be spent annually by 2015 and, with just seven percent of the anticipated work having been completed to date, the opportunities for the supply chain are immense.

Since director Ian Bell founded Optimus in 1999, the business has achieved strong organic growth year-on-year and Bell has his sights firmly set on becoming the leading boutique engineering consultancy serving the North Sea. Today, the group directly employs 90 staff at its Aberdeen headquarters and satellite offices in Inverness in the Scottish Highlands

Optimus (Aberdeen) Limited

The team is equipped with a wide range of technical and managerial experience

and Bangkok in Thailand. It also operates a joint venture in Varna, Bulgaria.

Bell believes the firm’s growth is testament to its common-sense approach to engineering.

“An ever-growing band of energy operators are realising the benefits of working with smaller, leaner and fitter contractors, who can react quickly to deliver projects efficiently,” he said. “We are confident that, because we’re a relatively small company, we can keep control of what our guys are doing and ensure projects don’t run over on cost or timescale.

We might charge a bit more than some of the competition for our expertise, but our ability to work smarter means we save our clients money in the long run.”

Optimus provides process engineering, facilities engineering, safety and project management services and has completed $130 million of capital projects in Europe and Africa during the past five years. Its expertise in decommissioning focuses on three key areas: annual liabilities activities, pre-Cessation of Production

“The company has built up a select team of specialists with all of the relevant skills necessary to provide support throughout the decommissioning process” BE Europe | 81

industry focus:

“We are incredibly proactive when it comes to working with clients” (CoP) planning and project management.

Heggie explained: “A significant indication of our growing credibility within the decommissioning sector is our recent success in securing a contract to manage an operator’s extensive liabilities portfolio.

This all-encompassing service includes not only liability cost maintenance, but provision of comprehensive due diligence services on a regular basis for any acquisitions or

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divestments, and conducting gap analysis reports to determine the issues and implications of operations in different global regions.”

As many operators prepare for their first decommissioning, the benefits of addressing decommissioning needs in a strategic manner are evident. Heggie said: “It allows costs to be fixed, prevents a resource shortage during peak decommissioning periods and gives the much-needed clarity required to

Optimus (Aberdeen) Limited

Optimus engineers have experience of working on projects from a client and contractor perspective

allow decommissioning to form part of a company’s corporate strategy.”

Much of Optimus’ success over the years can be attributed to its ability to integrate itself seamlessly into an operator’s team. “We are incredibly proactive when it comes to working with clients,” Heggie said. “We become an extended part of the team. We seek to assist in defining the work jointly, before then identifying the most efficient and cost-effective solutions that we know from our experience will produce the best results. We continue to add value with our flexible no-nonsense approach, independent advice and knowledge of alternative technological solutions.”

As for the long-term future, the team at

Optimus is looking forward to the challenges.

Bell concluded: “We are creating a flexible company that is best placed to deliver a fit-forpurpose, cost-effective solution to our clients and, eventually, we hope the Optimus way will be seen as a far better alternative to the status quo for decommissioning work. We have put in place all the necessary building blocks to ensure we play a fundamental role in leading the way in decommissioning for many years to come.”

For more information about Optimus (Aberdeen) Limited visit: www.optimusaberdeen.com

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Cros

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AlpTransit Gotthard AG

ssing new frontiers CEO, Marco Ceriani, discusses the creation of the New Rail Link through the Alps (NRLA), a project that has been dubbed ‘the construction of the century’

written by: Will Daynes research by: Abi Abagun

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Construction of the railway systems building and ventilation centre at the Faido portal has been in progress since 2012

AlpTransit Gotthard AG

T

ruly a natural wonder of our planet, the Swiss Alps have been attracting tourists from across the world since long before the construction of the first hotels and mountain huts in the mid eighteenth century. This continues to this day with the Alpine area as a whole attracting some 100 million visitors each year.

The Alps themselves cover some 65 percent of Switzerland’s surface area. Looking at that statistic alone it is perfectly understandable that, since the Middle Ages, transit across the Alps has played an important role in history, and remains a key issue at a national and international level. Since the beginning of industrialisation the country has worked tirelessly to improve its transalpine network, beginning with the building of the Gotthard Rail Tunnel in 1882.

Today, construction of the New Rail Link through the Alps (NRLA) is creating a fast and efficient railway link with two tunnels under the Gotthard and Ceneri at its heart.

Crossing the Alps with minimal gradients and wide curves, the new railway link will stand at only 550 metres above sea level at its highest point.

The idea of a flat crossing of the Alps is nothing new, what with the first vision of a Gotthard base tunnel having been conceived in 1947, however it is the NRLA Gotthard Axis project, running from Altdorf in the north to Lugano in the south, that is creating the first flat route through the Alps. “Several key aspects characterise the AlpTransit project and differentiate it from other modern railway infrastructure

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The Gotthard Base tunnel project The sheer scope and complexity of the project are literally unprecedented. No less daunting is the job of ensuring that railway employees, train operators and dispatchers can communicate with each other deep underneath 3,000 meters of Alpine granite.

To make that happen, Alcatel-Lucent Switzerland trusted one of the premier global RF solutions providers, CommScope®.

Project parameters and objectives As the in-tunnel DAS provider, CommScope engineers were asked to design, commission and provide system integration support for the DAS solution. The technical requirements were significant. Trains must be able to connect reliably and seamlessly to the railway’s railway’s GSM (GSM-R) network—the system that allows train operators, dispatchers and in-train personnel to communicate. The DAS must also support traffic from public GSM- 900MHz and GSM-1800MHz networks, one UMTS 2100MHz network and the railway’s PMR-400MHz public safety network. The objective was to ensure accurate, precise voice and data signal handoffs while trains speed through the tunnel at up to 250 kilometers per hour.

ION-M™—the high-speed railway coverage solution ION-M™ is the heart of CommScope’s DAS solution. It is a highly customizable, advanced multi-band, multi-operator, fiber-based DAS that uses master control units connected to multiple remote repeaters via fiber optic cables.

CommScope provides proven expertise and demonstrated success Through its Andrew Solutions railway connectivity portfolio, CommScope has built an impressive resume of successful high-speed rail projects. The first Andrew Solutions distributed antenna systems (DAS) for railway tunnels were developed in the 1980s for use in the construction of the Channel Tunnel—the world’s longest underwater passage, connecting England to France. Since then, CommScope has provided critical communication networks for rail projects in Italy, Taiwan, Spain, Switzerland, Canada, Russia, China and Norway.

Email: WirelessMarketingEMEA@commscope.com | www.commscope.com

PROBLEM SOLVED!

The Gotthard Base tunnel project CommScope® provides reliable DAS coverage 3,000 meters underground at 250 km/h

At times we can’t even get a strong enough cell phone signal in our own home. Imagine being asked to provide reliable, consistent signal strength for passengers speeding through the Swiss Alps at 250 kilometers per hour. That’s right, through the Alps, not over or around them.

In 1998, the Swiss government envisioned a high-speed rail line connecting the international trading hubs of Zurich, Switzerland and Milan, Italy. Only one thing stood in the way: The Swiss Alps. The solution was a 57-kilometer subterranean rail line blasted and bored through solid rock. When it opens in 2016, the Gotthard Base Tunnel will be the world’s longest railway tunnel.

projects,” explains Chief Construction completed with the Ceneri Base Tunnel.

Officer, Marco Ceriani, “for instance the The flat route will cut 40 kilometres off the fact that it will operate with mixed traffic. former distance of 330 kilometres from Basel Passenger trains will travel through to Chiasso and has a maximum gradient of the Gotthard Base Tunnel, which at 57 only 12 per thousand. That is much less than the 26 per thousand on kilometres will be the the 130-years-old existing world’s longest railway tunnel, at a maximum speed Gotthard mountain route. of 250 kilometres per hour “T he Gotthard Base and goods trains at up to Tunnel,” Ceriani continues, 160 kilometres per hour.” “consists of two single-track The Gotthard Base Tunnel tubes which are separated will go into operation in from each other but linked 2016, while three years every 325 metres by crossVisitors to the Alps each year later, in 2019, the flat route passages. In addition, two through the Alps will be mu lt i f unc t ion stat ions

100

million

Work in progress at Camorino, north of the north portal of the Ceneri Base Tunnel, includes the Lugano-Bellinzon

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AlpTransit Gotthard AG

“It is the NRLA Gotthard Axis project, running from Altdorf in the north to Lugano in the south, that is creating the first flat route through the Alps” at Sedrun and Faido divide the tunnel tubes into three sections of approximately equal length. The multifunction stations each contain an emergency-stop station for evacuation and two track-crossovers, thus allowing trains to cross over from one tube into the other. The tunnel’s maximum capacity is 50-80 passenger

na viaduct and the new underpass of the cantonal road

trains and 220-260 goods trains per day, depending on the operating regime.”

Looking back over the history of the project itself, Ceriani is quick to highlight some of the larger, and indeed more challenging undertakings that have been encountered. “One of the biggest tasks was the construction of the shaft at Sedrun, which the miners began excavating in 1996.

They started from a mountain valley in the Bündner Oberland 1,300 metres above sea level and sank a shaft 800 metres down to the level of the tunnel. From this intermediate heading, they started driving the Gotthard Base Tunnel to the north and south. The purpose of the intermediate heading was to shorten the construction time.”

It perhaps goes without saying that the final breakthrough of the project also stands out prominently in Ceriani’s mind. “This took place in the east tube on 15 October, 2010, at 2:17 pm local time, when the tunnel-boring machine travelling from Faido broke through into the Sedrun section. The breakthrough error itself was minimal, measuring only eight centimetres horizontally and one centimetre vertically, yet it marked a historic moment for not only this project, but the country as well.”

Of course, with a project of this size challenges are difficulties are inevitable.

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“What the newly constructed Gotthard route will do is make rail travel competitive with road and air travel�

In the Ceneri Base Tunnel at Sigirino, progress continues on four drives

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AlpTransit Gotthard AG One of particular note occurred during work at the Piora syncline. It is here that on the surface by the road over the Lukmanier Pass, about 1,500 metres above the level of the tunnel, there are outcrops of whitish sugary dolomitic marble. The syncline itself was thought to consist of an inverted cone of loose aquiferous material extending down to a great depth. This zone was also encountered when a 6.5-kilometres-long exploration tunnel was drilled 300 metres above the The Amsteg installations site has been level of the base tunnel. removed and is now being renatured Ceriani goes on to recount what happened next. “Sugary dolomitic marble without dolomite under high water water was encountered. The geologists put forward the pressure flooded out and hypothesis that in the 300 blocked the tunnel-boring metres height difference machine with sand. The The total length of the whitish mixture of water and between the exploration Gotthard Base Tunnel sand flowed out of the tunnel tunnel and the base tunnel, and covered the cantonal there must be a geological discontinuity. It probably road in the Leventina with a sandy layer. The media reported this with takes the form of a solidified gypsum the headline “D-day at Piora Beach” and cap that separates these two different predicted the death of the project.” formations. The entire campaign cost This was not to be of course. “The point around 100 million Swiss francs. It was where the water flowed out was successfully executed before it was known whether sealed,” Ceriani highlights. “Diagonal bores this project could be implemented and the were drilled down to the level of the base financing had been secured. Ten years later, tunnel to investigate the consistency of when actually driving, this controversial the material. Fortunately, hard, compact zone was traversed without difficulty. At

57km

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AlpTransit Gotthard AG

The points for the Sedrun multifunction station are assembled at Erstfeld before being transported into the tunnel

the level of the tunnel it was about 150 metres wide and was driven through at a speed of about ten metres per day.”

As of July 2013 structural work on the project is largely complete, with around 50 percent of the railway infrastructure systems within the Gotthard Base Tunnel having been installed. Meanwhile, in the Ceneri Base Tunnel, excavation work is in full swing, with more than 60 percent having already been cut, making AlpTransit Gotthard confident that the Ceneri Base Tunnel will be ready for scheduled train services in 2019.

Additionally, pilot operations between Faido and the south portal at Bodio will start on schedule in December 2013, making it a further important milestone on the way to the world’s longest railway tunnel becoming operational in 2016.

With strong progress being made across all areas of the project, Ceriani has a very clear view of what he expects it to bring Switzerland in terms of economic and social benefits. “Goods traffic on the north-south axis is constantly increasing and it is the goal for much of this traffic to be transferred from road to rail to protect the sensitive Alpine environment that we hold so dear. What the newly constructed Gotthard route will do is make rail travel competitive with road and air travel. This will benefit more than 20 million people in the catchment area between southern Germany and northern Italy.”

For more information about AlpTransit Gotthard AG visit: www.alptransit.ch

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A star shin

Commercial Director, Dimmie de Milander Group and how it is perfectly positioned to

written by: Will Daynes |

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Starlite Aviation Group

ning bright

discusses the strengths of Starlite Aviation o capitalise on future growth opportunities

research by: Jeff Abbott

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T

he Africa of the 21st century is often highlighted by the vast metropolitan cities that have been building up steadily to become centres of economic prosperity, yet the continents land is still home to a vast expanse of frontier land. It is on this land, particularly along coastal areas, that many of today’s most exciting oil and gas finds are being made. However, when it comes to operating in such areas, where logistical infrastructure is sometimes non-existent, it often calls for companies to rely on expert advice and local knowledge. It is here where companies like Starlite Aviation come into play.

Established in South Africa in 1999, the group has undergone an extended period of growth to become a multi-faceted aviation business offering a range of helicopter services on a worldwide basis. Such services include relief contract work, oil and gas, passenger and cargo transport, helicopter sales and charter, maintenance and pilot training.

“We began life providing purely disaster relief and support services,” explains Commercial Director, Dimmie de Milander.

“From there we expanded into supporting various non-governmental organisations before taking on several contracts for our aircraft on a longer term basis. Through a combination of this contract work and the income that we derive from our training school we were able to begin developing our ability to provide support to customers operating in the offshore oil and gas industry.”

The capital raised from its long term contracts also allowed Starlite to invest in its fleet of aircraft. “Every time we tie up an

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Starlite Aviation Group

aircraft to a contact we endeavour to use the money from that to make another aircraft ready to be put into service,” de Milander continues. “In many ways this keeps us one step ahead of the market as it often means we have aircraft ready to take on work as it becomes available.”

Starlite’s fleet today includes aircraft from

Aerospatiale, Robinson, Bell, Sikorsky and Eurocopter. “Traditionally,” de Milander states, “we have leant towards the use of Eurocopter aircraft, however what we previously possessed was a slightly older, ageing fleet. Whereas the costs associated with upgrading to a more modern aircraft would previously have made such a possibility

“The group has undergone a period of growth to become a multi-faceted aviation business offering a range of services on a worldwide basis” 100 | BE Europe

Starlite Aviation Group

Starlite currently operates 11 Puma helicopters

challenging for us, the fact that now we have virtually all of our aircraft tied into some form of contract we have the capital available to us to source new models.”

Starlite is proposing a major expansion of its activities over the next few years, which will place increased pressure on the capacity of its existing fleet. Accordingly it has embarked on a fleet renewal and acquisition programme to augment existing aircraft, and cater for a continued shift in demand for its aircraft to newer technology and heavier aircraft types.

Starlite recently signed an agreement to become the launch customer for Eurocopter’s new AS332 C1e aircraft. This new helicopter

is ideally suited to the medium-heavy utility market but could also be used to support oil and gas work. The AS332 C1e helicopter is the latest version of the popular Eurocopter Super Puma medium-weight helicopter.

While Starlite isn’t the largest of aviation businesses, de Milander is keen to point out that there is one particular characteristic of the group that allows it to compete with almost anyone in the world when it comes to supplying aircraft, and that is that it has proven countless times that it can operate along supply lines in some of the most difficult, challenging and unpredictable parts of the world.

“Whether our customers operate in the fields of oil and gas or high-end mining,

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or are involved in non-government agency programmes, they almost always eventually end up working in countries with almost no aviation support infrastructure present.

We have seen this in our work in places like Afghanistan, Pakistan, Kosovo, Myanmar, South Sudan and Mali, to name a few locations, and it has always been our focus to be able to provide these clients with safe, reliable support in these regions.”

Whereas the larger corporate helicopter suppliers tend to have a much more risk adverse approach to business, Starlite has always been found to be prepared to judge each situation and scenario by its individual merits before seeing how it can be of service to a client.

That is certainly not to suggest that safety isn’t the most paramount of issues for Starlite, in fact quite the contrary. “Safety has been,

“Today the group’s talent for delivering services in some of the most remote parts of the world, let alone Africa, continues to shine through”

Pilots carrying out preflight checks

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Starlite Aviation Group

The Bell 412 reliably performs in the most extreme climates on the planet every day

is and always will be the “It was during the course of one of its tasks that the most important aspect of aircraft in question suffered our business,” de Milander an engine fault in a location enthuses. “Through the approximately ten kilometres operations of our training The year that Starlite from the nearest civilisation,” school we are able to was established in handpick the very best pilots he recalls. “In response to this South Africa for employment and these we organised for an engine to be sent from America to are invariably those with a that location, the necessary huge degree of experience, often gained through military service.” changes were then made and after just six The skill and capabilities of Starlite’s pilots days the aircraft was back flying again. and crew have been displayed countless times Understandably the client in question was in its lifetime. One particular example of this very pleased at the short amount of time that sticks out in de Milander’s mind involved required to remedy the situation and Sikorsky on of the group’s Sikorsky S92 aircraft which themselves stated that they doubted there are was providing offshore support for a client many other companies out there that could based off Namibia’s infamous Skeleton Coast. have handled such an issue so quickly.”

1999

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The Bell 212 Twin Huey on Jasper deck

Starlite Aviation Group Today the group’s talent for delivering services in some of the most remote parts of the world, let alone Africa, continues to shine through. Again in Namibia Starlite aircraft can be found operating in Lüderitz, along the south-western coast of the country. It is here, in one of the least hospitable coasts in all of Africa, that it has managed to retain a 99 percent dispatch rate of on-time deliveries.

With offshore oil and gas activity increasing at a considerable rate along both the western and eastern coasts of Africa it is significant that those within Starlite are confident that it is well positioned to provide the types of services that will be in even greater demand going forward.

“I believe that when you consider the growth of the oil and gas industry, our own position in that market and the fact that we have now proven capable of funding the addition of new aircraft into our fleet, it becomes clear that our primary mission need to be to continue delivering above expectations,” de Milander says. “There is such huge potential throughout the continent right now and it is our aim to be at the centre of that, capitalising on the opportunities that will arise. In targeting this we have been forming a number of strategic relationships in key locations such as Namibia, Tanzania, Kenya and Ghana, and in doing so we are making sure that Starlite will be wherever its clients need us to be in the years to come.”

For more information about Starlite Aviation Group visit: www.starliteaviation.com

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The g M

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Gibraltar Port Authority

gateway to the Mediterranean The Gibraltar Port Authority has worked tirelessly to ensure that the Port of Gibraltar meets the needs of an ever-increasing flow of shipping traffic

written by: Will Daynes research by: Robert Hodgson

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A super yacht berthed in Gibraltars’ world famous Ocean Village complex

Gibraltar Port Authority

F

or centuries Gibraltar, with its navigational safety standards whilst at the strategic location at the entrance same time maintaining the efficiency of the to the Mediterranean Sea, was port. The system, manned by the Gibraltar used as a naval fortress. Today Port Authority´s team of VTS staff, has the Rock, located at a crossroads been operational since 2011 and allows for of Mediterranean and Atlantic shipping constant monitoring of all vessel movements lanes, is recognised for its ability to provide both within and outside BGTW. a wide range of services to vessels of all The VTS operates as both an Information sizes and types, and for being a Maritime Service (INS) and Traffic Organisation Centre of Excellence.

Service (TOS) co-ordinating all ships in With over 71,000 vessels transiting the Gibraltar waters from the operations room Strait of Gibraltar each year, the Rock has in the port building. The VTS staff have at become a major bunkering port, the largest their disposal a range of sensors to assist in the Mediterranean, and for years the them in their work, including Radar and Port of Gibraltar has tapped Automatic Identification into the opportunities System (AIS) with coverage stretching many miles out offered by its proximity to one of the busiest maritime to sea enabling them to thoroughfares in the world. check vessel movements Established in 2005, the well before their arrival.

Vessels transiting The VTS operators can also Gibraltar Port Authority’s the Strait of Gibraltar use CCTV cameras with strategy is to build each year night-time thermal imaging on Gibraltar’s unique capability and a radio geographical position and fiscal status and provide a vital link between direction finding facility which accurately all stakeholders to ensure a cohesive strategy pinpoints the source of VHF transmissions. aimed at achieving common goals.

Whilst the system´s primary focus is on The Port Authority’s main functions include navigational safety, allowing VTS operators the monitoring and the control of all vessel to de-conflict movements in the busy BGTW, movement, the provision of security controls it also provides opportunities to maximise the within restricted and controlled zones, the use of the port space for commercial benefit. licensing of port operations, search and In line with international requirements, rescue in British Gibraltar Territorial Waters vessels are required to provide pre-arrival (BGTW) and pollution control. notification giving VTS staff the ability to Gibraltar´s Vessel Traffic Services (VTS) organise vessel movements in advance with has enabled the Gibraltar Port Authority to local companies and thus ensure maximum strengthen its ability to co-ordinate vessel efficiency and minimum waiting times, with movements in BGTW, thereby improving real-time movement information on vessel

71,000

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Nature Port Reception Facilities Ltd

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PORT OFAuthority GIBRALTAR Gibraltar Port Port ofin Gibraltar feature tempor incididunt ut labore activity and around the text goes here...Lorem ipsum et dolore magna aliqua. Ut port being readily available dolor sit amet, consectetur enim ad minim veniam, quis to shipping agents, pilots and other service providers. adipisicing elit, sed do nostrud exercitation ullamco laboris nisi ut aliquip ex Given the sheer volume eiusmod tempor incididunt ea commodo consequat. of traffic it handles on ut labore that et dolore magna Duis aute irure dolor in a yearlyUtbasis theadport has aliqua. enim minim reprehenderit in voluptate made a continuous effort veniam, quis nostrud exercitation ullamco laboris velit esse cillum dolore to improve its facilities and nisi ut aliquip ex in ea commodo eu fugiat nulla pariatur. infrastructure order to consequat.

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Excepteur sint occaecat sunt At its North Mole the port has Ships non in theproident, Port of Gibraltar dolor in reprehenderit in This is a caption this is a caption cupidatat facilities the esse loading and in culpa qui officia deserunt voluptateforvelit cillum mollitsupplying anim id est laborum.

Lorem ipsum dolor discharging of containers and smallExcepteur amounts been cargo to Gibraltar since 1892. dolore eu fugiat nulla pariatur. amet,ofconsectetur sed do of seaborne general cargo.non The container the moreadipisicing attractiveelit, facets of sint occaecat cupidatat proident, berth sunt sit One in used culpaon quia officia anim of id Gibraltar’s eiusmod tempor incididunt labore et dolore is regulardeserunt basis bymollit the vessels waters is the factutthat is possesses est laborum.

Lorem ipsum dolor sit amet, a magna aliqua.tidal Ut enim adwhich minimallows veniam, quis shipping company Oldenburg-Portugiesische one metre range cruise consectetur adipisicing elit, sed dowho eiusmod nostrud ullamco nisi ut to exercitation berth alongside the laboris port’s Cruise Dampfschiffs-Rhederei, or OPDR, have ships

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Terminal at any time of day or night within an hour of leaving the main shipping lanes of the Strait of Gibraltar.

These cruise ships, and other vessels calling for bunkers - or water for that matter - can be accommodated on both sides of the Western Arm. The outer side is 490 metres long with a maximum draught of 9.6 metres and can accommodate vessels of any length.

The inner side is 450 metres long with a maximum draught of 8.6 metres and can accommodate vessels up to a maximum length of 300 metres. Vessels calling for lay-up or repairs can also berth at the Detached Mole, which is 605 metres long with a maximum draught of 9.1 metres. Two 100 metre berths are available for vessels discharging general cargo.

Gibraltar is the one of the largest bunkering ports in the Mediterranean. In 2011 alone, 4.2 million tonnes of bunkers were delivered to its port, a figure that makes the 0.84 million tonnes delivered in 1990 pale in comparison.

When one considers that of the approximately 10,350 vessels that called at Gibraltar, 6,181 of these were supplied with bunkers, it isn’t hard to see why bunkering has become the main activity of the port.

Among the other advantages of the island and its port are its competitive market,

which comes as a result of its high turnover, its competitive port duties, the fact that the market is continuously monitored by the Government to ensure competitiveness and, lest we forget, the low costs associated with doing business here due to its unique tax-free status within European Union.

It is important to remember as well however

“The port has awarded sustainable ships certified by Green Award with a five percent reduction in tonnage dues since the beginning of April 2013�

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Gibraltar Port Authority

Gibraltar airport runway

that even as the Port of Gibraltar has grown in size, stature and importance, its operators have maintained the belief that safety and environmental concerns associated with the port continue to be given top priority.

It is with this in mind that the port announced in March of this year its participation in the Green Award certification scheme. For its part in the scheme the port has awarded sustainable ships certified by Green Award a five percent reduction in tonnage dues since the beginning of April 2013.

Green Award’s managing director Mr Jan Fransen presented a Green Award board to Minister Neil Costa, officially making Gibraltar a Green Award port. The ceremony

was hosted by the Port Authority and among guests was Minister for Health and Environment Dr John Cortes.

In his speech Mr Fransen said: “The Port of Gibraltar’s view fits very well with the Green Award’s Philosophy. When such a major bunker port as Gibraltar practices its Corporate Social Responsibility through participating in the Green Award scheme, it does make a difference and motivates safe and environmentally conscious shipping.”

For more information about Gibraltar Port Authority visit: www.gibraltarport.com

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London Array

Powering

the future Project Director, Richard Rigg, discusses the journey taken by and the lessons learnt from the London Array project, the world’s largest offshore wind farm

written by: Will Daynes research by: Louisa Adcock

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London Array

I

t was in July 1887 that Scottish academic James Blyth installed the world’s first electricity-generating wind turbine.

Although at the time considered uneconomical in the UK, electricity generating wind turbines proved to be far more cost effective in countries with widely scattered populations, a fact that saw American inventor Charles F Brush follow up Blyth’s work some months later by building the first automatically operated wind turbine for electricity production in Cleveland, Ohio.

Fast forward to the 21st Century and the world finds itself in a situation where rising concerns over energy security, global warming, and eventual fossil fuel depletion have led to an expansion of interest in all available forms of renewable energy, including wind power. It was due to this interest that the fledgling commercial wind power industry began expanding at a robust growth rate of about 30 percent per year, driven by the ready availability of large wind resources, and falling costs due to improved technology and wind farm management.

Today, London Array is arguably the most widely known UK offshore wind farm and the largest of its kind found anywhere in the world. Following confirmation of the suitability of the area for construction of a wind farm site, the London Array project was officially born in 2001, with the Crown Estate providing the consortium of operators at the time, Shell WindEnergy Ltd, E.ON UK Renewables and DONG Energy, a 50 year lease for the site and cable route to shore, which was entered into in 2004.

Planning consent for the project’s 1GW

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SPECIALISTS

We take part in the world’s largest offshore wind projects

LONDON ARRAY

Danish Per Aarsleff A/S and German Bilfinger Construction GmbH are cooperating in the joint venture Aarsleff BilfingerBerger Joint Venture. We have recently completed the installation of 177 foundations for the London Array Offshore Wind Farm located off the east coast of England. Currently, we are installing 80 monopile foundations for the DanTysk Offshore Wind Farm. Previously, the joint venture has installed 92 monopiles for the Horns Rev 2 Offshore Wind Farm, 91 gravity foundations for the Rødsand 2 Offshore Wind Farm, 7 gravity foundations for the Sprogø Offshore Wind Farm and 100 foundations for the Thanet Offshore Wind Farm.

AARHUS

HAMBURG

LONDON

Aarsleff Bilfinger Berger Joint Venture Aarsleff Bilfinger Berger Joint Venture is a Danish-German joint venture between two of the world’s leading contractors – Per Aarsleff A/S from Aarhus and Bilfinger Construction GmbH from Hamburg. Both companies have extensive experience in and knowledge of the execution of demanding marine construction work.

The working relationship From 2004 to 2013, we have implemented huge offshore foundation structures in Denmark, Germany and the UK. The clients of these projects include major energy companies looking for a business partner capable of implementing giant contracts. We have handled everything from design and construction to installation of offshore steel and concrete foundations, just as we have handled the actual installation of wind turbines.

The world’s largest offshore wind farms The JV has executed the foundations for half of the world’s largest operating offshore wind farms. Recently, it has completed the world’s largest offshore wind farm, the London Array Offshore Wind Farm, and it is currently executing the DanTysk Offshore Wind Farm which will be commissioned in 2014. By then, the JV will have executed the foundations for five of the world’s largest offshore wind farms.

Specialists Every single project is unique and poses unique challenges. Therefore, we have always

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focused on finding the right equipment and the right expertise for the specific infrastructure job – also when a job required us to develop new specialist equipment and new solutions.

Staff Our staff has many years of experience and wide expertise within offshore activities, and they cover the whole spectrum from tendering to order acquisition, planning, design and execution.

We attach great importance to being able to execute as much of each project as possible by means of our own staff in order to build up and maintain experience and know-how inhouse. This way, expertise gained is passed on from project to project thus contributing to enhancing our competitiveness.

Our skilled and dedicated staff contributes to our success on the offshore wind market.

Equipment Specialist equipment is required for the implementation of offshore wind projects.

We spend many resources on development and investment in specialist equipment for our projects. Our purpose is to optimise the projects to the benefit of our customers.

Our specialist equipment includes pile grippers, lifting yokes, upending devices, barges, sea fastenings, cage installation tools etc.

All equipment is developed by in-house engineers and technicians. www.abjv.com

London Array

offshore wind farm was granted in 2006, with commissioned on 6 April, 2013,” states permission granted for the onshore works Project Director, Richard Rigg, “an event following in 2007. Work on Phase One started which effectively marked the culmination of in July 2009 when building commenced on the installation of the 630MW wind farm. the onshore substation at Cleve Hill in Kent, From that point on the complete wind farm whereas offshore construction started in has been generating and earning revenue.”

March 2011 when the first foundation was Such is the sheer scale of London Array installed. The first turbine that it is estimated that its 175 turbines will be capable was installed in January of generating enough energy 2012, with first power achieved in October that year to power nearly half a million and the final turbine installed homes and reduce harmful in December 2012.

CO2 emissions by over The number of turbines “We reached the key 900,000 tonnes a year. that make up the “When this project was first milestone of having the wind farm conceived,” Rigg continues, 175th and final turbine

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“London Array is arguably the most widely known UK offshore wind farm and the largest of its kind found anywhere in the world�

Construction of a turbine

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London Array “I think it is fair to say that it was felt by many that an undertaking of this size could simply not be carried out.” Indeed at the time there wasn’t even any legislation in place that allowed for the construction of a project the size of London Array.

Nevertheless, it is with a great sense of pride that Rigg can declare that despite the considerable challenges that the consortium has encountered in the last decade or so, London Array looks set to deliver on the promises it made back at the time of its conception.

Said challenges include Offshore substations boost the voltage to reduce transmission losses overcoming the obstacles that presented themselves due to the location than that anticipated and factored in by the of the project in the outer Thames Estuary. consortium. Regardless of these setbacks the Here the water depth can range at lowest project ended up having what Rigg describes atmospheric tide from 25 metres right down as a remarkable year in 2012. “By the end to minus one metre, meaning that at various of December 2012 we had installed in the points some areas of the site actually dry out. space of ten months all bar a few array cables, “As you can imagine,” Rigg highlights, three of the four export cables, and 90 of the “when you have to get a large vessel in to 177 foundations. That means that we finished install components weighing around 650 the year installing the last turbine within a tonnes you have to ensure that you get it in at few weeks of the date we actually set back high tide, jack it up and then await the return in May 2009, which I think is a fantastic of higher water levels before getting it back achievement.”

The consortium, which now consists of out again. All of this adds an extra degree of DONG Energy, E.ON and Masdar, is very keen complexity to the work you are doing.”

In addition to these logistical difficulties to stress that it sees London Array as being the project has been hampered by several the first real industrial scale offshore wind extensive periods of bad weather, worse farm, with its success being a precursor to

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Seen

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vincent@bus-ex.com

London Array the next round of wind farms nexans due to appear off the coasts With energy at the basis of its development, Nexans, a of the UK. worldwide expert in the cable industry, offers an extensive Where it also hopes range of cables and cabling solutions. The Group is a global to see the project being player in the energy transmission and distribution, industry labelled an inspiration for and building markets. Nexans addresses a wide series of future developments is in its market segments: from energy and telecom networks to energy resources and transportation. efforts towards benefiting Continuous innovation in products, solutions and services, the environment and the employee development and commitment, customer orientation local communities who and the introduction of safe industrial processes with limited reside around the site. It has environmental impact are among the key initiatives that place long been the aim of the Nexans at the core of a sustainable future. consortium to see London www.nexans.no Array playing a key role in helping the UK to meet various renewable energy targets. By reducing carbon emissions by more than 900,000 tonnes a year the project will be playing a critical role in helping to tackle the effects of climate change and global warming, this providing significant, long term environmental benefits.

“It is important to recognise that in addition to London Array there are a number of other large offshore wind farms that really are contributing to this shared goal,” Rigg explains. “The more this happens, the sooner people will recognise the scale of the contributions these projects are making. In turn they will hopefully then realise that Installing array cables these wind farms can generate industrial

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LIFTRIG CONSULTING Driven by a passion for safety in lifting operations, LiftRig Consulting’s team of experienced engineers are leading innovators of lifting and handling solutions, cable handling and storage systems, lifting assurance and lift planning services. At LiftRig, we strive to become the leading provider of lifting engineering services and personnel to the energy sector and beyond, and we treat every engineering requirement as a unique project.

Producing innovative solutions requires unique talents which are not always available from many companies. The engineering team at LiftRig has a track record of creating such innovative

LiftRig are proud to be associated with the successful completion of the London Array Wind Farm.

solutions, which can be shown to include world-leading products and advanced solutions to modern challenges Combining over 25 years’ experience in on- and offshore engineering with the +44sales@LiftRig.com (0)1202 238718 www.LiftRig.com latest state-of-the-art design software, the LiftRig team is well-placed to provide solutions that are safe, practical, effective and cost-effective. Our unique design service will satisfy the needs of any organisation responsible for providing a safe system of work to its employees, installers or those of its customers.

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London Array

London Array operations & maintenance office

amounts of electricity and “The relationship we play an important role in the have built up with the local villages of Graveney and energy mix of the future.”

While the wind turbines Goodnestone is nothing that make up London Array short of excellent and stand 20 kilometres out to have already proven to be Of CO2 emissions that sea, the project has still had mutually beneficial for all the wind farm will help a big impact of the onshore concerned,” Rigg enthuses. reduce per year communities in the Cleve Hill Examples of some of the and Ramsgate areas, a fact positive results to come from that has not been lost on the consortium. In these relationships include London Array’s the early days of the project it faced natural support of a university bursary scheme, the opposition to its plans for building its Cleve creation of a community fund managed by Hill substation. Respecting this opposition an independent trust, its donations to various the consortium embarked on a programme wildlife funds and the annual donations of engagement, working hard to involve local made to three local schools. people and keeping communities informed Equal effort has been made by the about the progress of the project at all times. consortium in Ramsgate where it has

900,000+ tonnes

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London Array endeavoured, wherever possible, to employ local people to its construction and operations and maintenance teams, and to source from local suppliers, not only during the construction phase of the project but for all manner of activities related to the project, from hotels and taxis to bringing in a local company to supply the Cleve Hill substation with high speed internet access.

Now that London Array is into its operational phase the focus of the consortium turns to ensuring that it works as effectively and efficiently as possible. In doing so it is expected to produce some hugely important performance figures that its owners hope can then be used to demonstrate that wind farms have indeed become serious players in terms of today’s energy mix.

Looking ahead to the future, Rigg points out that while what has already been achieved is hugely significant, there is more work to be done if mankind is to get the most out of offshore wind power. “The aim for the industry as a whole is to bring down the costs associated with offshore wind and improve the overall reliability of wind power generation. While there is still much to be done if we are to reap the full rewards that wind power has to offer there can be no doubt that the lessons learnt from London Array will prove invaluable for those behind the creation of the next generation of wind farms.”

For more information about London Array visit: www.londonarray.com

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Tomorrow starts here Malta’s Cisco operations are an epitome of its global significance as the industry enters its next evolutionary phase

written by: John O’Hanlon research by: james boyle 130 | BE Europe

Cisco Malta

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eing the world’s most successful networking company Cisco’s ubiquity is a given and it has been ‘present’ in Malta as throughout Europe and the Mediterranean area for decades through its channel partners.

However its physical presence only dates from 2008, when an office was set up under its current manager Ruben Azzopardi, a man with a deep understanding of Cisco’s products and capabilities as a senior executive at one of its principal local customers. In 2011 the company was the first to move into SmartCity, a joint venture between SmartCity Dubai and the government of Malta designed to make the island a hub for ICT in the region.

That was natural enough. Located on 360,000 square metres of land in the Ricasoli area close to the capital Valetta, SmartCity Malta is destined to become a flagship development: it is a state of the art ICT township, with all the buildings knit together and managed by systems based on Cisco’s infrastructure. “We believe this is an important and strategic project for the country,” says Azzopardi. “It is going to provide a focus to develop the ICT knowledge industries generally. We felt we should be part of it!” It will help transform the country, he believes.

Cisco’s presence in Malta is helping it to develop projects that will contribute to the improvement of ICT and its application in the country, Azzopardi explains. Operationally Malta falls within Cisco’s South Region comprising Greece, Malta, Cyprus, Israel, France, Italy Portugal and Spain. Malta is clearly the smallest of these economies, but

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Cisco Malta

$14.5 trillion Cisco’s estimate of ICT market by 2020

Nikos Botinis

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it is a country that punches above its weight in the EC and in terms of ICT it experiences no disadvantages. “We have found that having the office here allows us to be closer to our customers and to develop the sector in a more successful and satisfactory manner.

We can pull in resources from different locations according to what we need here in this country.”

In that he has the support of Cisco’s Regional Sales Manager Nikos Botinis, based in Athens. “Malta is strategically a key territory that helps us to be part of the mature markets of Europe and also the developing markets in the Middle East. But Maltese companies also need to transform their business. We feel the Maltese community is ready to take advantage of those domestic businesses – some of them very successful that are focused on the IT industry.”

Cisco’s 30-year history is a long one in ICT and the company has metamorphosed more than once. In its early years it perfected a simple architecture for ethernet switching; its second decade saw it answer the challenge of increasing bandwidth with is GSR routers; then in 2006 it launched its Human Network programme to bring it closer to the end user. Now it is anticipating the future of the internet. If we think of the growth of

Cisco Malta

Ruben Azzopardi

communications in the last 30 years as exponential, well we ain’t seen anything yet, says Botinis. Every business will be able to take advantage of what Cisco is calling the Internet of Everything. “You could call IoE the intelligent connection of people processes and things. We do feel at Cisco that this will be the trend for the next decade.” Cisco’s aim is to become the number one IT player in the world within the next three years by taking advantage, with its partners round the world,

in the next major evolution of the internet.

The fundamentals support this ambition.

Back in 1995 there were just a million internet-enabled connections. E-commerce, social media and the cloud, the most recent evolution, have escalated that to around three billion today, however Cisco estimates that by 2020 the number will rise to almost 50 billion. That translates into a worldwide business opportunity of $14.4 trillion, roughly 45 percent of them being

“We are putting in a lot of effort on our mobile providers’ behalf to help them meet the demand from their users” BE Europe | 135

“We are asking our partners to take advantage of this evolution and transform their business, whatever that may be” machine-to-machine, or connections that take place between objects without the need for human intervention. Within that there is a large addressable segment for Cisco: “We are asking our partners to take advantage of

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this evolution and transform their business, whatever that may be.”

The reality is that the mobile internet is already a reality the Internet of things is only just starting, as everyday objects like medical

Cisco Malta

devices learning programmes, cars, houses as well as white goods join the party that is already in full swing in industry. Cisco will be the enabler, to connect all these devices with each other and with people. Won’t Malta just be a small pawn in this massive game? No way, says Ruben Azzopardi.

Everything that happens in western Europe is relevant to Malta: “The latest information from the Visual Networking Index (VNI – Cisco’s analysis of global communications networking) forecasts there are going to be 2.1 mobile connected devices per person in

Europe by 2017, and this means mobile data traffic will have grown about eightfold over the five years between 2012 and 2017. That gives us an idea of where customers and users want to see better performance, and where the demand for bandwidth is coming from. We are putting in a lot of effort on our mobile providers’ behalf to help them meet the demand from their users.”

The whole point about the IoE is that it is also the Internet of Everywhere. Malta cannot afford to be insular – no pun intended – where these opportunities are concerned.

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So he has a multifocused strategy, part of which concentrates on Maltese businesses.

“In general,” says Ruben, “Cisco is very active in the space of service providers like Melita and Go on the Malta home front, and we are doing this by delivering solutions around what we call intelligent networks. Demand on these service providers is growing daily, and to help them meet it Cisco offers software defined networks driven by Cisco’s open network environment (ONE) that takes networks into the next, more virtual, generation. “It is about making the services a telecoms company can give more relevant to the user and more attuned to give a better user experience,” he says.

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The two rival networks on Malta, Go and Melita, have already benefited from this approach, Go having adopted Cisco Prime Network as a fault management tool that has reduced its infrastructure costs at the same time helping it provide a better service.

And Cisco helped Melita to deploy the latest generation of cable technology enabling it to take broadband access to much higher speeds of 100 MB and above in Malta. Melita was one of the first companies in Europe to roll this out on a countrywide basis and the project has become a benchmark for customers in other territories, he proclaims.

His job is to introduce leading edge technologies and stay ahead of the evolution

Cisco Malta

“We are giving Maltese companies the tools, the platforms and the development kits to take their ideas and their abilities to that market” defined by IoE and technologies like ONE. A solid ICT infrastructure can support the economy directly and indirectly, he stresses: ICT is basically a supporting infrastructure.

It creates high value jobs as well. Malta has been at a very good level when it comes to adoption and introduction of technology at various levels so I think having a healthy

ICT industry and infrastructure helps other parts of the economy. Moreover we are making sure that we have certified specialised and trained people to support the business here in Malta and by transference to neighbours in Europe, North Africa and the Middle East.”

Nikos Botinis agrees: “Each country has to decide on the strategic advantages and the strategic areas it has within the EU. And then the ICT comes in as an enabler to multiply the effect on the strategy that has been decided on a country level. I would say that this is our role at Cisco, to add value and catalyse this multiplier effect.

We started in Malta with one partner and two or three resellers and we now have 25 authorised resellers and we have more than 50 Cisco engineers. Is this adequate? No, to be honest, but we feel Malta is on the right track with the adoption of programs like the Cisco Network Academy Program where we jointly develop engineers in the local market.”

Another area of focus for Cisco is the cloud and the growth of software as a service (SaaS) and for Cisco’s direct partners infrastructure as a service (IaaS). Cisco is leading the way with newly announced tools. “We have created an infrastructure platform for our

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Cisco Malta customers to be able to go on the application layer because this is the fundamental part,” says Azzopardi. A key element within ONE is a programme development kit (onePK) that allows application providers to create ‘hooks’ or new applications relating to the network.

“It is a more ‘standard’ way of interacting with the network, he explains. “It is still cumbersome to interact with a network device and you need very specific technical knowledge of how that device works. With onePK it is easier for developers to actually talk to the network and ask it to do things or ask it to give information back.”

As the internet grew it became complex.

The task now is to simplify it again and return the benefits of flexibility and ease of use to application developers. “But this also gives an opportunity to the local developers to think about what they can do to simplify the experience for their users,” says Nikos Botinis. “The network touches everything!”

Malta intends to be right in there, promises Ruben Azzopardi. “We are saying to the Maltese companies: ‘You have a vehicle.

The government is investing in creating an environment in SmartCity to develop technologies relevant all over the world, not just Europe. What you can develop here can be marketed all over the world.’ We are giving them the tools, the platforms and the development kits to take their ideas and their abilities to that market.”

For more information about Cisco Malta visit: www.cisco.com

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The future is Among the forces that bind the people of Azerbaijan together is its mobile communications network: we talk to Azercell’s recently appointed CEO about the technical and social aspirations of the company

written by: John O’Hanlon research by: David Brogan

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Azercell

s data

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Chiril Gaburici, CEO

Azercell

I

t is a truth universally acknowledged that by the urge to bring the latest technologies to everyone has to have a mobile phone these the market.” The people of Azerbaijan have a days and Azerbaijanis are no exception. right to the most recent technologies available 9.4 million people live in Azerbaijan, and anywhere in the world, he believes.

This is the approach that has brought while there are only a little less than 1.5 million landline subscribers there are more Azercell from number two in the market than ten million mobile network connections. to the position of market leader, with clear In this, Azerbaijan is not very different from water between it and its nearest rival. It is any other modern economy, but things have a matter of choice, and a majority of the developed faster here than in many European population has chosen Azercell as a direct countries. In 1997, the year after Azercell result, he is firmly convinced, of being able to entered the market, it had 20,371 subscribers: offer the right strategies and the best in breed today it has 4.4 million, 53 percent of a technologies. The company has invested more than $1 billion since it market it shares with two other significant players and started operating here more than 16 years ago. “We put 800 employees.

Azercell is part of the in the money and rolled out TeliaSonera group, Europe’s the service quickly, and that fifth largest telecoms operator was one of the things that based in Sweden but active differentiated us. Innovative across the Nordic region solutions and technology Azercell subscribers gave us the leadership – we as well as in Turkey, the had the first 24/7 call centre, Balkans, Spain and Russia among the 18 markets it now the Azercell Ekspress concept serves. The company is led by Chiril Gaburici, of a one stop shop where our subscribers who under TeliaSonera’s policy to rotate are receiving all the services of a first rate, its CEOs periodically came in September indeed world class phone network operator, 2012 into this challenging market from with specific business solutions provided by Moldova, 1,000 miles away and on the other third party partners in any areas to which our expertise does not extend. That way every side of the Black Sea. The idea is to circulate these successful Azercell Ekspress customer has a solution to and proven managers so that they can bring all his communications issues.” new perspectives into established markets: With access to TeliaSonera expertise “The telecoms sector is just about the fastest Azercell was able to lead in establishing 3G changing market there is,” he says. “New networks across the country, and has now technologies are being developed every day, become the first to offer a 4G service in the and the customers’ needs are changing just as capital Baku. The list of firsts seems never quick. Whenever we do anything we are driven ending: it was the first to roll out a GSM

4.4

Million

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service, the first with its prepaid SimSim card and the first company to achieve ISO 9001/2000 accreditation. Additionally, with more network base stations than any other operator its service is available to 99.8 percent of the population.

The key to this success, says Gaburici is the excellence of the team of engineers, which has not only done a great job in Azerbaijan but has been able to export its talent to many other markets within the TeliaSonera group.

“We have our experts working in Moldova, Istanbul, Uzbekistan and Nepal. We put the subscribers right at the front of everything we do and do our best to make them happy. Our policy is to become the world’s number one service company, presenting the whole of our offering transparently and clearly so all the information is put in front of the subscriber and he does not get any surprises.”

The company’s ISO certification, he adds, extends to personal data, privacy and data security. “We have a saying in the company that the future is data! So we are investing in network quality that will give our subscribers more speed, more capacity and a more userfriendly experience. We will double our 3G network this year compared to last year to meet the huge demand that already exists. At the same time we are developing the future

– which I believe is the 4G network.” A strong mobile ecosystem is a tangible contribution to the quality of life of the nation, and he is determined to see the full package of technology and service extended to the more remote parts of the country without delay.

Meanwhile there is a constant need to work with the device and platform developers to ensure that the ever-increasing range of applications and modalities is supported

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Azercell

Azercell’s call centre operates 24/7

by the network. Here again seen. It is also manifest in Azercell takes a proactive the way Azercell picked up stance, he says, making the sponsorship of Eurovision latest smartphones available.

2012 – having won it in 2011 The company’s latest Azerbaijan hosted the event campaign is for the Samsung last year, when it was neatly Galaxy S4, which became the won by TeliaSonera’s home Amount spent fastest selling smartphone in country Sweden. “I am proud on social projects Samsung’s history when it that we were an integral part was released earlier this year. of making it happen – before Recently it was promoting Eurovision even people in the Huawei, before that HTC, and the current company had a hazy idea of where Azerbaijan campaign is for the latest Blackberry. is but afterwards they had no doubt!

The company’s mantra is “Add Value: Show But it’s no surprise that Azercell was able to Respect: Make it Happen” and this, says make Eurovision happen – its implementation Gaburici, is the litmus test he uses to judge of new technology has been nothing short every project. The last part is key to the way of unbeatable. By dint of forward planning, the company has grown, as we have already network preparation and testing the

$16

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equipment, services and frequencies it was able to get its 3G network live the day after the licence was granted. More recently, the implementation of 4G was similarly proactive and the team was able to throw the switch just a couple days from getting the go-ahead from the regulator.

And Azercell makes a lot of things happen

in the community as well. Chiril Gaburici is very proud of two mobile clinics that have been going round the country, especially places that don’t have the best access to hospital services. One is an eye clinic that visits orphanages to make sure children have eye tests and free glasses if they need them. The other is a dental clinic. In all, the

“Whenever we do anything we are driven by the urge to bring the latest technologies to the market�

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Azercell

Baku in Azerbaijan

company spent $16 million on social projects.

In 2009 Azercell founded the Barama Innovation Center in Baku. It is an incubator where young Azerbaijani entrepreneurs can develop their ICT and telecom-related innovations in a supportive environment before launching them in the marketplace. In partnership with Cisco Systems and USAID, up to 20 entrepreneurs at a time are given research space and resources for six to twelve months, depending on the complexity of their concept. “We don’t give them fish; but we do teach them how to fish!” he says.

There’s no doubt that Azercell is an effective telecoms company, and a feather in the cap of the country’s economy – it is

after all the largest taxpayer outside the oil and gas sector. In 2012 it contributed $115 million to the state – and in its 16-year history it has paid nearly $1.2 billion. In partnership with the world’s most recognised telecoms companies and with the support of TeliaSonera and its minority shareholder the Turkish mobile operator Turkcell it is in fine shape to take Azerbaijan into the 4G era and beyond, Gaburici promises. “The future is data!”

For more information about Azercell visit: www.azercell.com

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Abraservice Nederland

More than a

steel supplier COO of Abraservice Holdings, Michel Raets, and Sales Manager at Abraservice Nederland, Lars De Goede discuss the secrets behind Abraservice’s success, the role it is playing in creating a brighter future and Abraservice Nederland’s own contributions towards local and international growth

written by: Will Daynes research by: Marcus Lewis

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Lars De Goede and Michel Raets

Abraservice Nederland

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European leader when it comes to the distribution of wear resistant and high yield strength steels, it is a hugely important belief within Abraservice that it should be seen to be more than just a supplier of such products.

Rather it has successfully fashioned itself into a specialised provider of its customers’ complete solutions, from the analysis of their needs to the supply of finished and machined parts, ready for assembly.

Part of the Jacquet Metal Service Group, Abraservice’s experience and technical knowledge ensure that it fully understands the needs of its customers and can offer support during quoting, following delivery and during service. It also acts as an advisor to the customers when it comes to selecting the right type of steel with the appropriate properties and during the processing phase.

These customers operate in a diverse range of industries and environments including power plants, yellow goods, steel production, mines and quarries, cement works, recycling, civil engineering and the chemical sector. What these environments do all have in common however is that in each of them the quality and durability of materials is paramount.

Abraservice today boasts a presence in more than ten European markets, including Belgium, Germany and the Netherlands, and employs over 230 people across these subsidiaries. “What makes the Netherlands a unique market to operate in is that it is a dredging country and what this inevitably means is that our focus here is on providing wear resistant and high yield steel to this

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market,” explains Lars De Goede, Sales Manager at Abraservice Nederland. “If you look at some of the core products that we sell, Creusabro for example, these are extremely well suited to this important market sector.”

Creusabro is a high performance wear resistant steel and Abraservice is the exclusive European dealer of this highly reputable metal. “The success of this product has contributed to much of our growth in recent times as we have been able to convince an increasing number of customers to switch from traditional wear resistant steels,” De Goede continues. “With an average wear resistance that is between 40 and 45 percent higher than conventional 400HB water quenched steel, Creusabro delivers these users significant cost savings over the life of use. It also lends itself extremely well to processes like bending and rolling, which is vital when it comes to its use in dredging tubes.”

Creusabro also possesses a rather special self-hardening quality that makes the product stand out from other wear resistant steels.

By being able to be delivered in a softer condition users of the steel benefit from the fact that the drilling and machining of the piece is a much easier, less time consuming activity. Once this is complete Creusabro then

reveals its last trump card in the form of its self-hardening qualities which strengthens the steel over the course of its lifetime.

Meanwhile, when it comes to high yield steels, Abraservice Nederland again supplies its customers with proven, reliable solutions that conform to international norms and standards. “Like our wear resistant steels, when it comes to high yield steels,” states COO of Abraservice Holdings, Michel Raets,

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Abraservice Nederland

Steel cutter in action

Dredging tube

“what we are always aiming In Raets’ opinion, the to do is create higher value for reason for the continued our customers in the form of steady growth of the business things like greater mechanical is down to several core properties, bending and factors. “For starters we are Employees working for always focused on the service shaping properties and Abraservice that we provide, after all impact toughness. In doing across Europe that word forms part of our so we further differentiate name. One of the ways we ourselves and our offering from that of our competitors.” are trying to make life easier The market environment that Abraservice for our customers is by providing, where Nederland finds itself in today is undoubtedly required, the material they need complete a challenging one, defined as it is by with holes drilled and welding, bending and increased competition and record low price rolling complete. This means that what they levels. Despite these conditions the company receive from us is a product that can be used has managed to again break the mould by straight out of the box, so to speak.” recording increased tonnage growth in the Even though the company has exceeded first half of 2013 compared to 2012. all expectations when it comes to its growth,

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its success does remain tied to a number of external factors, for example the level of investment in public expenditures in the Netherlands and of course the performance of the steel works industry. The existence of blast furnaces across Europe plays an important role in Abraservice’s own performance, so one can imagine the negative effect that the

closing of no fewer than twelve in 2012 had on the company.

Nevertheless, there is room for optimism within the company. “We believe,” Raets says, “that even in the face of an environment that is very fragile we our strategy of bringing added value options to our customers and exclusive products to market will result in

“Throughout the group significant work is underway to improve Abraservice’s business and to guarantee its long-term success”

Bulk handling bucket wheel

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Abraservice Nederland

Offshore guide track with rotating tower

Abraservice remaining one of few suppliers of its kind to prosper going forward.

We are certainly of the opinion that our higher levels of knowledge, experience and production capabilities place us in a much better position today than other nondifferentiated players out there.”

After a 2012 that both Raets and De Goede openly admit to being difficult for the company as a result of business levels and the need to restructure the organisation accordingly, it is pleasing to find that Abraservice today retains the full support and confidence of its shareholders, confidence that has clearly been well founded what with the company now back

in the black in terms of profits and investing massively across the organisation.

“Throughout the group,” Raets concludes, “significant work is underway to improve Abraservice’s business and to guarantee its long-term success. Perhaps what is most important to note however is that unlike many other companies out there, we are not just hoping and wishing for better times to come, rather we are taking a leading role as actors in making this future a reality.”

For more information about Abraservice Nederland visit: www.abraservice.com/nederland

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IMA Engineering

Cutting edge

technology IMA’s products and services can make the difference between profitability and loss for an operation seeking to improve information used by management – and imparted to investors

written by: John O’Hanlon research by: Marcus Lewis

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IMA Engineering

I

Jukka and OreAlyzer PDSA in Perth 2013

MA stands for Innovative Mineral Analyzers and here is a company that does exactly what its name says. IMA is a technology front-runner in mining on-line analysis, and if that sounds dry, for mining companies concerned to occupy the critical space between metal prices and extraction costs material analysis can well be what decides viability. You can’t plan based on what you don’t know and IMA gives you the critical information often missing in mining; the value of the ore.

The company was formerly a part of the Finnish listed engineering group Outokumpu.

In the 1990s, faced with a difficult global market, the group restructured around its core business spinning off IMA Engineering, which next January will be celebrating its 20-year anniversary as a private company whose shares are owned by a group of individuals and investors, including its Managing Director Mr Jukka Raatikainen.

Jukka was already an experienced engineer and product manager at Outokumpu, and keen to develop products and technologies he had been working on that were then under development and bring them to market.

At the time of its foundation IMA was focused on concentrator applications, he says.

“We were making analysers for measuring concentrator slurries. We were not involved in the core business of Outokumpu which was mainly to do with analysers for base metal mines. We were developing applications in other areas.” These included the X-ray Fluorescence (XRF) QuarCon system, an on-belt analyser system for monitoring crushed ore products, mainly in limestone

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500 metres Length of core Scanmobile can analyse in a day

QuarCon 200 fast conveyor analyzer

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and ‘white minerals’, and a sampling and analysis product for the cement industry called IMACON. Setting a pattern for its future business model IMA was already working with FLSmidth, the world-leading supplier of cement plants. The QuarCon and IMACON systems are still available, though technology never stands still and these products, leading edge at the time, are now classed as the firm’s ‘traditional’ ranges, he says.

By 2000 IMA was already looking at ways to add value in the mining environment.

“The in-house technical applications we had, Laser Induced Fluorescence (LIF) for example, led to products developed for the mines. For online measurement the big hurdle is sampling: we developed sampling methods and ways of adapting them from laboratory methods to online applications.”

In a laboratory, he explains, samples are prepared, finely ground and examined in vacuum conditions. You may get a more accurate result with it on a spot sample than is possible when examining a fast-moving slurry or powder with on line methods.

However, a good degree of analysis accuracy and excellent continuous sampling representativeness can be achieved by an online analyser, giving a reading every 30

IMA Engineering

QuarCon setup in cement plant

seconds. That’s real-time information. “With laboratory testing you are always viewing the process in the rear-view mirror!” he points out.

Limestone and cement processes are more tractable than those encountered underground. “Within a mine it is extremely difficult to reach analysis that gives a picture of the area where you are loading and blasting. That is why we developed a X-ray and laser-based conveyor fast analysis applications. Concentrators are stable.

They stay in the same place. In a mine the operation is always moving and the sampling

and analysis equipment has to move with the equipment.” IMA’s OreSpex systems are designed to scan in real time the run-ofmine (ROM) ore being conveyed in mines and quarries. This is more than just a matter of good housekeeping: mines have become used to factoring in ‘waste rock dilution’ of between five and 20 percent. If too much waste material is getting into the feed the concentrator is running at lowered efficiency and that goes straight to the bottom line. “We believe it is very important to analyse the material at the point it goes on the conveyor.

We offer the technology to analyse it within

“With laboratory testing you are always viewing the process in the rear-view mirror!”

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tenths of seconds, straight from the crusher – then if anything is wrong remedial action, like sorting out the unwanted waste rock or adjusting recovery process parameters according to ore characteristics before it enters the the plant, can be taken straight away.”

However waiting till the ore is blasted is too late to really avoid dilution problems. How is it possible to be sure you are only blasting

and loading the ore and not waste rock ? To map the deposit geologists use drilling results of course, but this can be a slow process.

Seven years ago IMA Engineering came up with its first on-site drill core analyser in cooperation with its sister company Mine On-Line Service. “In any typical exploration programme,” explains Jukka, “even on a greenfield site, you need to get samples of the ore body. During the exploration phase

“Scanmobile is a factory-like process, in which these boxes are put in the scanning station and automatically analysed on the spot”

OreSpex on conveyor detecting waste

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IMA Engineering

Scanmobile in action

time is becoming very important. Investors want real time information. Quite often it can take ten years from starting drilling to getting a mine into operation. Even majors developing an established ore body don’t want to take that long: for the juniors time is critical.” The company’s response was to develop a scanning station in which cores could be analysed almost instantly and the analysis information could be delivered to mine planning programs within days or weeks instead of years as is the case with conventional technology.

The familiar pattern of exploring an area, whether in the mine or outside, is to box up the cores, log them and send them to the laboratory to be analysed. It can take six months to get the results back. “If you are in

a drilling campaign you have to wait till you have those results before you can move on to plan the next holes to drill. We developed a machine that can analyse these drill cores immediately as they are put in the boxes, he says. “It is a factory-like process, in which these boxes are put in the scanning station and automatically analysed on the spot.”

A scanning station of this type can handle up to 500 metres of drill core in a day: a drilling campaign of ten kilometres can thus be analysed within a month..

Mine ON-Line Service has been trialling and operating this service, known as Scanmobile, in the Nordic countries of Sweden, Norway and Finland since 2008 – with the emphasis on service. “The mining company doesn’t have to buy the equipment – they just pay by

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the metre!” The equipment is installed in the Scanmobile van and moved from site to site, for the duration of the drilling campaign, he adds. “The information flows automatically from the van and the geologists can see it instantly via the internet. On the same day, or within a couple of days at most, they can download very accurate images of the drill cores, examine the boxes on-screen, and read the analysis.”

In practical terms, using Scanmobile gives the client the chance to move without delay to planning the next drill hole pattern and move on to the next drilling campaign. It is a very good example of IMA’s focus on improving

Testing drill cuttings analysis

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mine efficiency and getting the most out of the ore by addressing the real issues faced by mining companies.

Scanmobile service is delivered by Mine On-Line Service (MOLS), a kind of in-house partnership that works very well. However to take the products and services to a global market it is IMA’s strategy to link up with larger equipment and systems companies where appropriate. Not all drills produce cores. It is also important to examine the material, known as drill cuttings, brought up by standard percussive or rotary drills – the information from the drill cuttings can’t be as accurate as from a core but by using

IMA Engineering

“We are sure that in ten years all mines will have orealyzer on board their drilling rigs” techniques perfected by IMA it can approach these levels. “We have now developed a method to analyse and feed online the results of drill cuttings using equipment that is installed and integrated with the drill rig,” says Jukka Raatikainen.

The new product and service, branded

OreAlyzer, will be brought to market in partnership with the equipment manufacturer Atlas Copco. The analyser will be manufactured by IMA, integrated on Atlas Copco rigs and marketed integrally with them.

“We wanted the best possible partner because this is a product with huge global potential,” he continues. “In drill cuttings analysis the challenge is to sample the material that comes out of the hole.” OreAlyzer analyses the elemental content of the cuttings, giving an instant reading. As the drill progresses it can analyse the material within 30 centimetre accuracy giving ‘analyse while drilling’ information which is processed in the rig’s on-board computer and transmitted to the mine in real time along with data about the location, depth, hardness and penetration rate. “This is the best information you can get prior to blasting. It allows you to create a 3D model telling the mine where to blast.”

OreAlyzer is nothing less than a mining revolution, he believes, giving operators a new tool to work more accurately, position their blasting correctly, identifying the cutoff line, avoiding waste material sent to the concentrator and improving health and safety too. It is now available on AtlasCopco’s highly automated D65 Smart Rock machine.

“We are sure that in ten years all mines will

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Testing prototype in the Arctic

IMA Engineering

20% Typical waste rock dilution in mines have this on board their drilling rigs,” says Jukka confidently. “At present they don’t know how much ore they are losing in the waste stream. They only have average results. A new world opens when you have a 3D model of the bench.”

IMA On-Line Mine Vision is behind all these products, and others it has in development.

Accurate extraction of an accurately identified ore body and stable feed to the concentrator are business critical goals for mining companies. IMA is a research based company, and will continue to look for partners to adopt and market its products – privately owned, well-funded and with excellent links to universities and research institutions in Finland. There are many more applications for its technology says Jukka: “We are always looking for new applications in the market.”

Those attracting his interest currently include slag analysis and the optimisation of laterite ore bodies but whatever the mine’s problem IMA engineering is happy to discuss it, develop a solution, and hopefully bring it to the market in the shape of a product that will benefit the industry as a whole.

For more information about IMA Engineering visit: www.ima.fi

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grindex

THE ART OF STAYING DRY One of the strongest brands in the world for dewatering pumps, Grindex is an important partner for mining, construction and infrastructure: as part of the Xylem group it has a truly global reach

written by: John O’Hanlon research by: Marcus Lewis

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G

rindex was founded in 1940 by two Swedish engineers.

Among its earliest products was a rock grinding machine: this established the firm in the mining and construction markets; however when co-founder Bรถrje Kristensson was out selling the grinding machine, he came across a new product on the market, a submersible drainage pump. The problem with submersible pumps in the early 1960s was that they were heavy and could not run dry. Kristensson set

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about developing a lightweight pump that could run dry, thanks to a patented air valve.

The rest, as they say, is history. Grindex retained its name, but by the 1980s sold the grinding machine business and positioned itself as a specialist in dewatering pumps for many applications. Today the company is a global leader in submersible pumps for demanding applications such as construction, mining and rental. Grindex products are exported all around the world through more than 50 regional distributors.

Grindex

In 1989 Grindex set up a USA subsidiary in Chicago. The company’s current Managing Director Per Rehn went out there in 2009, two years after he joined the company, to manage a strategic expansion into the Canadian market. Having overseen the growth of sales in North America in the course of two years, he returned to Sweden where he now heads the global activities of Grindex AB. The year 2008 saw a major restructuring of the company. “At that time it was decided to optimise the synergies between the

different specialist pump manufacturers in the ITT group and to develop a platform upon which to develop the Grindex range along with others within the corporation,” says Rehn. This reduced the amount of overlap within the group’s product ranges, as well as introducing the sound automotive industry principle of utilising common components wherever possible.

The company closed its old office and moved to new premises in Stockholm. At the same time the manufacturing facilities

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$50 million Grindex 2012 turnover

were rationalised as well. Grindex closed its Stockholm factory and moved production to an extended manufacturing facility at Emmaboda in the Småland district of southern Sweden, with dedicated lines for the Grindex ranges. Divested of the need to run a manufacturing facility Grindex now concentrates on its sales, marketing and logistics functions and on extending its reach in overseas markets.

The new set up has been very beneficial for Grindex’s sales, its top line growing from SEK 210 million, or around $33 million in 2009, to SEK 332 million in 2012 – a little over $50 million. It will be observed that the growth in business both in the USA and globally under Rehn’s watch was achieved in the face of a global recession. However he is quick to admit that it was helped by the fact that the mining sector, one of the principal applications for the range, has expanded as softer markets have contracted.

The company, leaner after its reorganisation, retains the key advantages that established the brand. “Having been in the market since the 1960s we have a legacy of satisfaction from our customers, and of knowledgeable, experienced people working in the company.” This legacy has positioned Grindex as one of the very few truly global brands, its major competitors the

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Grindex

Japanese manufacturer Tsurumi and ABS pumps, recently acquired by Sulzer.

In 2011 the water management businesses within the ITT group were combined and the new group was named Xylem – as every schoolchild should know, xylem are the waterraising filaments in trees and plants!

To illustrate the power of Grindex pumps when faced with a really challenging problem, one of the best examples comes not from Africa or Asia, but on Grindex’s doorstep in Sweden, says Rehn. In 2011 the locks of the Trollhättan canal in central Sweden needed to be upgraded, and new gates installed.

Each lock can accommodate ships up to

4,000 tonnes: they are 89 metres in length, 13 metres wide and 5.4 metres deep and hold more than 6,000 cubic metres of water.

Four locks needed emptying, so powerful and reliable pumps that could operate around the clock were essential.

Staff from Grindex’s technical department assisted the contractor Sjuntorps Industri Support AB with the sizing of the pumps.

With 37 million litres of water to be drained before work could get started, three slurry pumps, 22 drainage pumps and a sludge pump were recommended. After 25 days the project was successfully completed and the canal re-opened to shipping: the pumps were

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“I think local knowledge is very important if you want to build a good relationship with the mine management� given a standard service and put back into storage awaiting the next rental project.

Mining companies are now increasingly turning to Grindex to cope with harsh conditions underground. In the largest underground copper mine in the world in Chile, Grindex Inox pumps able to pump 50 litres per second paid for themselves within months when installed to replace conventional end-suction pumps that were

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pumping only 15 litres per second and had spare part availability problems. The mine needed to reclaim copper from the water rather than just send it to the treatment plant. Grindex’s exclusive distributor for the Chilean market, Santiago-based ACH, provides a maintenance contract where the pumps are pulled out for preventive maintenance every 2,000 hours and replaced by stand-in pumps. The preventive

Grindex

maintenance avoids unscheduled stops and more expensive repairs and the total maintenance cost is cut drastically.

To keep up not just with the volume growth in mining but also its geographical expansion, Per Rehn wants to refocus his team and his resources onto emerging markets. This approach has paid off in Latin America through hiring people resident in Sweden but born and raised in Central and South America. “They are versed in the culture, know the local languages and understand the way business is done in these markets. I think local knowledge of this sort is very important if you want to build a good relationship with the mine management.”

There are Australian, Russians and people from South Africa in Grindex working

alongside local distributors to penetrate these markets. “It is our strategy to make full use of distributors in most of our markets – we do not have our own sales teams in the field except in USA and even there we appoint regional distributors too.” Appointing a distributor is a long-term commitment, he adds. “We consider ourselves very entrepreneurial, and we like to encourage a similar spirit in our distributors. In response we try to listen to them and respond in a flexible way when they suggest improvements, something they appreciate.”

For more information about Grindex visit: www.grindex.com

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Demir Export

Turning experience into excellence Having more than a half century’s experience, Demir Export is recognised as one of the leading diversified mining companies in Turkey with extensive know-how and competency

written by: NilgĂźl Pelit Poyraz research by: Abi Abagun

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Demir Export

F

ounded under Koç Group, one of the largest and most successful industrial and trading enterprises in Turkey, Demir Export has produced iron ore since 1957.

In subsequent years, Demir Export also initiated production of base and precious metals such as zinc, lead, copper and silver ore concentrates in addition to lignite and chromite ore production in lumpy form and as concentrates. The yearly copper concentrate production of Demir Export from its underground operations in Giresun, north east Turkey, comes in at 15,000 tonnes, while yearly chromite production in Bursa province is 30,000 tonnes. Meanwhile, iron ore production from six different iron ore operations in Sivas, Kayseri and Balıkesir provinces has reached 1.5 metric tonnes per year, all of which is sold to domestic integrated steel mills, namely Kardemir, Erdemir and İsdemir. Demir Export is making significant steps to extend this spectrum with new operations that it expects to commence in the near future.

Iron ore, after which Demir Export was named, has been the key production product for the company throughout its history. Demir Export has gone on to become a major supplier in the domestic market, serving the largest integrated iron and steel plants of Turkey.

The company’s iron ore operations can today be found in Çetinkaya, Purunsur, Elkondu, Otlukilise, Uzunpınar and Şamlı. While the iron ore production in 2012 was 750,000 tonnes, the production capacity for 2013 has been increased to 1,500,000 tonnes. In May 2013, Demir Export acquired 100 percent of the

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Demir Export shares of Ferrocom Madencilik operating in Divriği-Sivas.

With this acquisition Demir Export is now targeting to elevate its premium quality iron ore production to more than 500,000 tonnes per annum.

Another major product for the company has been its copper ore concentrate production which occurs in Lahanos, in the Eastern Black Sea Region of Anatolia. The production volume in 2012 for copper was approximately 14,800 tonnes, all of which was subsequently exported.

Lahanos is still an active operation where the remaining estimated copper concentrate production for 2013 has been determined as being 12,000 tonnes.

In addition to its iron ore and copper assets, Demir Export’s Güdecek chromite operation is located in Güdecek Sırtı region of Ömeraltı village in Mustafakemalpasa district at a distance of 140 kilometres from Bursa. Last year 25,500 tonnes of concentrate was produced from this operation, whereas the target for 2013 has been increased to 35,000 tonnes.

In addition to its existing operations, Demir Export plans to grow its business by developing new projects and adding new products to its production portfolio. Having produced almost 90 million tonnes of coal in Kangal between 1989 and 2012, Demir Export is now in the process of developing an underground coal mine at East Eynez, in Western Turkey, which

ORTADOGU SONDAJ Ortadogu Drilling Ltd., was established with the purpose of providing drilling services for the mining and energy sector. Our company brings drilling and engineering services with continuously being improved drill rigs for diamond drilling projects. With the experienced drilling crew, our main goal is to satisfy the expectations of customers by completing boreholes with the highest possible core recovery. While increasing the knowledge and experience of our personnel by periodical trainings, the company follows the “ISO 9001 Quality Management System”.

By observing the national and international

legal legislations and requirements, we commit to follow the change in regulations, ensure the application of these changes, apply and monitor our procedures and continuously improve all of our activities.

Especially for the energy sector, our company drills the deepest slim holes in Turkey, which are cored with the purpose of exploring the geothermal heat gradient. These holes, some of which are deeper than 2.000 meters, are drilled with our own manufactured deep hole drill rigs “GEO- 1500”. www.ortadogusondaj.com

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“Demir Export has gone on to become a major supplier in the domestic market, serving the largest integrated iron and steel plants of Turkey� it predicts will start production in 2015. A fully mechanized longwall method will be employed and occupational health and safety will be of utmost importance at East Eynez where 36.6 million tonnes (3 million tonnes per year) will be produced in the estomated 18 years of mine life. Demir Export will be the first company in Turkey to implement Mechanized Longwall Top Coal Caving (LTCC) for underground coal production.

Another major operation that the company

184 | BE Europe

is excitedly preparing to run is BakÄąrtepe gold project where total mineable reserves have been estimated as being 4.0 tonnes of gold metal out of total geological source of 150,000 oz. The EIA approval was granted for the project, which will become a running mine operation by the first quarter of 2014. The operation is estimated to create 96 new direct local jobs for the surrounding community, which in turn will provide indirect economic benefit for 441 people in the region.

Demir Export

To develop the current product portfolio and to explore new production areas, the Exploration and Project Group of Demir Export capitalizes on a know-how which has accumulated over 50 years for domestic and international exploration, engineering and development projects.

In a bid to development a sustainable mining structure throughout the business, the company has recently undergone a signifiant corporate reorganization. This has led to the establishment of an environmental and social management framework based on international best practices, in addition to the operational requirements. This framework is aimed to ensure long-term success in applying corporate policies.

Looking ahead, and in line with said reorganization, Demir Export is committed

to exploring and operating at the highest standards of responsible resource development. The top priorities of the company continue to be occupational health and safety, environmental protection and the well-being of the communities around which it operates. These primary principles are embedded in all phases of the company’s operations. Demir Export is today combining a half century of experience with a young and innovative management style in order to achieve remarkable success in sustaining corporate growth and development in the Turkish mining industry.

For more information about Demir Export visit: www.demirexport.com

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186 | BE Europe

Aldridge Minerals

Multi metals

in Turkey

Aldridge Minerals is a junior Canadian company focused on just one project in Turkey – after a decade of development the Yenipazar mine is on the cusp of production

written by: John O’Hanlon research by: Peter Rowlston

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Aldridge Minerals

R

ight at the geographical centre without the support of the community,” says of Turkey sits the industrial town its President and CEO Mario Caron. of Kayseri (called after Caesar Yenipazar is a substantial project with 30 Augustus as it happens). It is million tonnes of reserves. It will be an open 120 kilometres north of Kayseri pit operation producing 2.5 million tonnes of that the principal project of Canadian mining ore a year over a mine life that is currently junior Aldridge Minerals can be found. The estimated at twelve years, however there is polymetallic Yenipazar project occupies a additional upside potential, with the company ten square kilometre site on a volcanogenic currently testing promising mineralised massive sulphide (VMS) body that hosts a outcrops close to the main deposit. gold-silver-copper-lead-zinc mineral deposit.

In addition Yenipazar is ideally located Aldridge has been present in Turkey since from the point of view of infrastructure. It has 2004 and has established a strong local excellent road access from the south and west, management team based at Ankara, just and is just 74 kilometres from the excellent four miles to the north west Turkish rail network, of the project. Canadian enabling the concentrates companies are familiar to the produced at the mine site to Turkish government, which be transported effectively has shown a lot of support to the Mediterranean port for their efforts in building of Iskenderun, where there projects in the country. To is spare capacity to handle grow its abundant resources them. Just 17 kilometres Capital cost of Yenipazar from the project the national both for export and to supply Turkey’s burgeoning industry electricity grid can be is a major priority here, which is no doubt accessed in the form of a 154 kV power line. why it is seen as a really enabling jurisdiction Very little infrastructure will have to be for these companies to enter. This is a good built, meaning that the lion’s share of financing can be devoted to constructing the mine time to be operating in Turkey.

Permitting, finance, infrastructure support proper, including process plant, equipment and expertise are all given a fair wind: in and tailings facilities. An owner-operated return companies like Aldridge are simply fleet of 90-tonne trucks and ten cubic metre expected to do their job, provide employment hydraulic excavators will be used to mine the for local people, engage in skills transfer ore and waste materials. The process plant is a and comply with local and international conventional crushing and grinding operation best practices when it comes to respecting followed by a gravity circuit where most of the the environment and community impact. All gold and a portion of the silver are recovered. these things Aldridge has taken pains to do: The gravity circuit is followed by sequential “It is impossible these days to develop a mine flotation of copper, lead, and zinc.

$382 million

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KÖSEOGLU MINIG CONSTRUCTION INDUSTRY AND TRADING CO. INC.

Our ultimate power and in-depth experience all blended with technology for your service

• EARTH MOVING PROJECTS • RAILWAY SUBSTRUCTURE • MOTORWAY SUBSTRUCTURE

• OPEN PIT MINING • HEPP PROJECTS • DAMS

www.koseoglugrup.com.tr

Aldridge Minerals

KÖSEOGLU MINIG CONSTRUCTION INDUSTRY AND TRADING CO. INC. Köseoglu Mining Construction Industry and Trading Co. Inc. was founded in 1987 with the core objective of pursuing business activities in the areas of mining, construction, engineering, tourism, transportation and agriculture.

The extensive experience derived from operation of open pit mines as part of Company’s mining business extension led it use the raw extrudes thereof for excavations in a variety of motorway construction projects, which notably include, among others, the sea rock-fill base formation work for the motorway segment between İzmir and Cesme. Later on, in line with its gradually improving equipment inventory,

the Company successfully undertook and delivered miscellaneous overburden removing for both Turkish Coal Enterprises and Electricity Generation Co., and continuing some privately owned mining sector projects for Tüprag Metal Mining, which is a subsidiary of Eldorado Gold, Koza Gold Operations Co. and AIMROC (Azerbaijan). Köseoglu Mining, with an average monthly earthmoving capability of 4.5000.000 m3, is now one of the leader in overburden removing, gold and coal mining projects in Turkey.

E. aliturkkan@koseoglugrup.com.tr www.koseoglugrup.com.tr

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ATILLA Atilla Machinery Co. Inc. was established as a construction company in 1976. It became a company realizing the turnkey industrial plant constructions (EPC) since the establishment. With our highly qualified, experienced personnel, we improve the quality of our services which we provide through our completed and on-going projects to our customers. Our company is ready to execute the following activities: civil works, steel construction manufacturing and erection, manufacturing and installation of equipment, pressure vessels, storage tanks, cyclones, gas channels, electrical and automation works and piping works. Besides standard civil and mechanical works, Atilla Machinery Co. Inc. can also execute special projects.

In accordance with the conditions and definitions of the work, Atilla Machinery chooses the proper techniques, supplying the correct material and equipment, and performs the projects with the best workmanship. Atilla Machinery had been constructed 4 Gold Mine Plants until today and is currently constructing another one, thereby is multiplying its experience about the gold mines. Furthermore, Atilla Machinery is also constructing second SART facility (Sulphidization, Acidification, Recycle and Thickening) for its customers and developing its experience on every matter within the sector. The other mining projects we are operating are Boron, Nickel, Copper, Iron, Chrome and Antimony. www.atilla.com.tr

Our work scope is mainly the “Turn-Key Construction of Industrial Plants”. In this context, the sectors that the projects undertaken are; • Mining Plants • Power Plants • Chemical & Petro-chemical Plants • Wood (MDF & Chipboard) Plants info@atilla.com.tr www.atilla.com.tr

YOUR RELIABLE PARTNER IN INDUSTRIAL PROJECTS

Aldridge Minerals

The total pre production capital the lower operating costs associated with expenditure comes out at $382 million: that conventional open-pit mining methods. For such an enviably low figure can be achieved, example operating costs for the tailings for a project of this sort, is explained partially management facility have been estimated at by this lack of a need to build expensive roads approximately $11 million during the 12-year or power plants, but the major contributing life of the project. The cost of mining will factor is the easy accessibility of the ore come out at something under $30 per tonne body itself.

One milestone already It is a shallow deposit, safely passed this year was much of it between 50 and the feasibility study, results 120 metres deep, which of which were announced means operating benefits in April. It confirmed the as well as low capex. The promise of the preliminary shallow nature of the ore economic assessment done body and the flat topography in 2010 and concluded that of the project footprint and Yenipazar is a robust and viable project. As Mario Caron surrounding area allow Total reserves at the site put it: “The strong results Aldridge to benefit from

30

million Tonnes

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pave the way for the completion of additional technical work while we advance the project financing and enter the development stage in the coming months.”

In the remaining months of 2013 Aldridge hopes to get its environmental and social impact assessments cleared by the Turkish government as well as the land acquisition necessary to build the mine. Detailed engineering will continue throughout 2014, with construction starting in the first quarter of next year. The process of building the mine and associated infrastructure such as the 17 kilometre power line to link with the grid will take about two years in total, including the commissioning phase, so commercial production should start in the early part of 2016.

Getting the financing structures in place to start construction is another priority in the wake of the feasibility study. The company’s shareholders, including its local partner ANT Holding and Mavi Investment Fund, have been highly supportive, says Caron.

Yenipazar has the inestimable advantage in today’s financial climate of being a polymetallic mine. This spreads the risk from price volatility giving a good deal of room for manoeuvre. “Not having any supply agreements that involve equity means we can

look at every available financing option. One of the main objectives in a difficult market is to keep the amount of equity needed to finance the project to a minimum.”

One of the options being considered is streaming transactions, which are becoming a favoured instrument for mining companies.

These are contracts for the ongoing supply of minerals under which, upon advance payment of a premium, the buyer agrees to purchase,

“It is impossible these days to develop a mine without the support of the community” 194 | BE Europe

Aldridge Minerals

at a fixed, discounted and predetermined price, all or part of the mineral production to be extracted by a mining company during a certain period or even throughout the life of the mine, until the mineral deposit is depleted. The mining company receives an upfront payment, which enables it to develop, construct and operate or expand the mine.

This allows the mining company to capitalise on the basis of proven but still unexplored mineral reserves, typically at a cost below that of a loan. Nevertheless offtake agreements will be open for negotiation too, he says.

Investors like to know the impact of their investment. After ten years in Turkey, Caron admits the company could never have achieved such rapid and smooth progress without the support of the authorities and

the local community too. Now that the exploration stage is drawing to a close and the project is entering its construction phase that cooperation is even more vital, so the company held a well attended public meeting in 2012 and will continue to engage all its stakeholders, keeping them informed and listening to their concerns. These days it may be difficult to get a project financed unless you can demonstrate its compliance with the Equator Principles but environmental and CSR best practice is part of Aldridge Minerals’ DNA. For more information about Aldridge Minerals visit: www.aldridgeminerals.ca

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