The Red Sea Development Company - February 2022

Designing and Building in Parallel DIGITAL REPORT 2022

IN ASSOCIATION WITH:

THE RED SEA DEVELOPMENT COMPANY

Designing and Building in Parallel

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THE RED SEA DEVELOPMENT COMPANY

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THE RED SEA DEVELOPMENT COMPANY

2018

Year Founded

Construction Industry

1,500

Number of Employees

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THE RED SEA DEVELOPMENT COMPANY

Ian Williamson highlights TRSDC’s design and construction dynamics, sustainability, off-site work and broadening portfolio

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porting a white Nike polo shirt, and fresh from attending the Jeddah Grand Prix, Ian Williamson, Group Chief Project Delivery Officer at The Red Sea Development Company (TRSDC), connects with me in his new on-site office he moved into a month ago, and looks at ease straddling the leisure-business divide.

For the next hour, such is his impressive grasp of all construction matters with the ambitious Red Sea Project, I don’t have much to say. He is out of the blocks faster than Lewis Hamilton and clearly wants to convey as much about all the myriad development components, and industry issues, in the time available.

TRSDC was incubated within Public Investment Fund (PIF) and formally formed into a private limited company, with all stock owned by PIF, in May 2018. It’s an integral part of Saudi Arabia’s Vision 2030, which is transitioning the country from an oil-based economy. Its mandate was to build the project, which covers 28,000sq km of land mass, including a 3,500sq km archipelago containing 92 islands and 250km of coastline.

“We equate it to the size of Belgium,” he said. “My role is to take approved design from our development arm, and convert to detailed design, procurement and construction, and handover to our operations team.” theredsea.sa

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THE RED SEA DEVELOPMENT COMPANY

28,000sq kms of land mass, including a

3,500sq km archipelago

Williamson joined as the ninth employee, and TRSDC’s workforce is now up to 1,500.

The MasterPlan was signed off in November 2018, which was followed by an intensive design period. So far over SAR13bn of work has been contracted which, when you factor in a PPP contract too, totals more than SAR18bn overall.

“Everyone’s surprised that we’ve built quite a lot, as we’ve been constructing and designing in parallel. It’s what sets us apart.

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We’re contracting at a rate of close to SAR1bn a month until we’ve completed the project buy out,” he said.

Along with juggling design and build, a ‘construct-and-manage’ approach provides direct access to the best subcontractors. “That means we haven’t got dependency over one or two contractors – who often have limited control over – and eliminate some of the mark ups,” he said.

THE RED SEA DEVELOPMENT COMPANY

IAN WILLIAMSON TITLE: C HIEF PROJECT AND DELIVERY OFFICER LOCATION: SAUDI ARABIA

BIM360 provides total visibility BIM360 gives total visibility on the entire supply chain involved with the Red Sea Project. Designs can be exported and imported, providing not only progress on a weekly basis, but also stage deliverables.

“When you’re spending billions on a megaproject, you can be subject to information overload – and that can lead to information misplacement. Tools can enable data to be put into the right pigeon holes,” he said.

EXECUTIVE BIO

Ian Williamson joined the organisation in October 2017. He is responsible for leading development and delivery of the planning, design and construction of the project.

As an Executive and Board Director for over 25 years, Ian has undertaken both strategic and operational roles, developing a leadership style that enables his colleagues to reach their potential.

Prior to joining TRSDC, Williamson served as Managing Director at Arcadis Middle East.

He holds a Master of Business Administration from Cass Business School, London, UK, and a Bachelor of Science in Electrical Engineering with Mathematics from the University of Reading, UK.

The Red Sea Development Company: designing and building

“ The more we can bring in that’s largely completed, and use finishing trades to put together, the more we can reduce the footfall on the islands” IAN WILLIAMSON

CHIEF PROJECT AND DELIVERY OFFICER, THE RED SEA DEVELOPMENT COMPANY

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He said the main challenges are the hyper inflation of commodities and container costs, which are pressurising projects globally.

“Labour is also a key factor, and has a direct bearing on schedules. The contractors who have performed averagely have come in with a project mentality. The ones that are making impression are in for the long haul.”

While the pandemic has placed pressures on schedules, Williamson doesn’t want to make COVID an excuse, and says broadly, despite lockdowns and health and cargo restrictions, it is on track. “But we have seen slippage in some areas though, and started night working in the last couple of months,” he said.

THE RED SEA DEVELOPMENT COMPANY

KEY PARTNERS IN RED SEA PROJECT DELIVERY

Jewel in KSA tourism With its clear coral-stacked waters, the Red Sea Project will be a jewel in KSA’s tourism crown. Tourism numbers will be restricted to one million travellers a year. The site has attracted plenty of interest among divers, including Philippe Cousteau, who sits on its advisory board.

“You carry premium once you create scarcity, plus the natural beauty of the geography, lends itself to a luxury tourism project,” he said.

Today, it is halfway through construction of phase 1. Three hotels are scheduled to open at the end of 2022, and another 13 due to be completed by the end of 2023.

Foster + Partners has designed over 80% of phase 1 works Saudi Amana Contracting has built a 150-room hotel as accommodation for management workers and third party visitors NESMA & Partners Contracting Co. and Almabani are the appointed JV operators for the airside works on the Red Sea International Airport King Abdullah University of Science and Technology (KAUST) has been a key partner since 2017 and its relationship has evolved into a mutually beneficial environmental-access-andresearch alliance Stower has integrated platforms and the project uses Primavera P6 EPPM, which helps manage and execute projects Aconex, bought by Oracle, is another solution in operation and recognised standard in the Middle East

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Where Experience Meets Innovation Contracting and Construction Enterprises (CCE), was established in Riyadh, Saudi Arabia in 1992 as a privately-owned general contracting company, operating in the Arabian Gulf and other countries of the Middle East.

CCE has been successful throughout its history executing numerous residential, industrial and commercial projects within the private and public sectors.

Over the years, CCE developed a prominent profile among the most reputable general contracting companies in the Kingdom of Saudi Arabia.

CCE builds strong foundations with Red Sea Regional Director Joseph Sarkis explains the changing face of KSA construction and its work with the Red Sea Development Company Contracting and Construction Enterprises (CCE), was established in Riyadh, Saudi Arabia in 1992 as a privately-owned general contracting company, operating in the Arabian Gulf and other countries of the Middle East. Today its broad portfolio covers hotels, infrastructure and megaprojects throughout the Kingdom.

Regional Director Joseph Sarkis reflects on a key year for Saudi construction.

“In 2020 there was a lot of talk about design and marketing and not so much activity on the ground, but in 2021 we saw a big movement, and lots of mobilisation. It looks like it’s going to swing from one extreme to the other.

“Now we’re rushing towards an over-demand of projects with limited supply, so it’s a very challenging landscape, but there are a lot of opportunities as well as risks.”

Working closely with Red Sea Development Company (RSDC), CCE is involved in one of its first deliverables, a 1.5m sqm Coastal Village, which will be the base for the management team.

“It’s very exciting to be part of this first, big development in the area and we have the entire secondary infrastructure package designed to reduce carbon emissions – Our project also includes the construction of central facilities and a road and track network dedicated to sustainable transportation” CCE started in February 2021 and planning to handover mid-2022.

RSDC operates BIM360 platform which CCE taps into, providing an efficient platform for managing the ambitious, 90-island archipelago project.

Sarkis is confident that the RSDC will be a unique hospitality project. “We would like to thank the Saudi Government for giving us this amazing opportunity, and creating the Vision 2030.”

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92 islands and

250kms of coastline

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THE RED SEA DEVELOPMENT COMPANY

“ The advantage is there is no existing development or having to work within an established infrastructure.

We’ve created the infrastructure and ecosystem, so we can control our destiny” IAN WILLIAMSON

CHIEF PROJECT AND DELIVERY OFFICER, THE RED SEA DEVELOPMENT COMPANY

Last October, as it started getting on top of phase 1, TRSDC said it was ready to take on new projects.

That lead to it securing the AMAALA project, 300km up the coastline, as well as around 12 other potential projects in the pipeline that are coastal or island-based, many of which are targeting a different audience – domestic travellers – in contrast to the global appeal of The Red Sea Project.

The first phase, Triple Bay, spans 11km and it has a mountain range unusually sited by the coast. The three unique bays owe their existence to water run-off from the mountains. The nine hotels will target ultra luxury travellers, but with more focus on wellness, arts and culture, whereas Red Sea Project is more island based and about its natural attractions.

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Boutique Contractor for Special Projects We are a team of engineers, architects, and craftsmen who work with dedication and passion for design, engineering, and fabrication. We are specialists in building iconic landmarks through our state-of-the-art technology, research and development, premium craftsmanship, and ability to understand design complexity.

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Pushing Design and Manufacturing Boundaries in The Red Sea Grankraft Industries is a key partner of The Red Sea Development Company developing some of the most futuristic hospitality resorts ever seen on water Most engineering and manufacturing companies would expect the brief for building a showpiece attraction within a world-leading ocean-based tourism development to be challenging.

The company, which started with four employees in 2000, now employs 500, and another 200 will come on board during peak production – likely to be arouand September – to complete the project.

But the demands set by The Red Sea Development Company to Grankraft Industries, for the development of the futuristic, hyper-luxury Sheybarah Hotel, have pushed the architectural and construction boundaries to new limits.

Alongside having to completely re-tool their manufacturing facilities, Grankraft acquired +10 bespoke machines and production kit, as well as set to work creating an off-site infrastructure to meet the unique OSM and environmental demands of this unique project.

Grankraft is building +70 futuristic ‘floating bubble’ overwater villas and main public hotel facilities with seamless polished stainless steel surfaces that reflect the environment – and they must be built with minimal disturbance to the coral-rich surroundings.

CEO George Jose said the Sheybarah project has tested Grankraft – itself no stranger to arresting developments – like few others, involving R&D, engineering, manufacturers, assemblers, welders, surface finishers and logistics.

“The Red Sea Development Company’s vision is like nothing I’ve ever seen – and I’ve travelled quite a bit – to participate in a project of this relevance, is a challenge and a great opportunity. We love the design and can’t wait to see all the villas installed and ‘floating’ in the ocean.”

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THE RED SEA DEVELOPMENT COMPANY

“ The main challenges are the hyper inflation of commodities and container costs, which are pressurising projects globally” IAN WILLIAMSON

CHIEF PROJECT AND DELIVERY OFFICER, THE RED SEA DEVELOPMENT COMPANY

“They actually complement each other well, you can see guests coming to the Red Sea and exploring a bunch of alternative holiday destinations – there are exciting opportunities, as we create a ‘Red Sea Riviera’.

“There’s so much beautiful coral and mangroves, and it’s rare to come across more than 90 islands with no man-made footprint.”

But that is all set to change, and TRSDC is acutely aware of the need to preserve the environment as much as possible.

“We originally forecasted 50,000 workers on site, and looked at how we can get that down to 30,000. Clearly the way to do that is manufacture as much as you can off site.

“We’re working closely with Saudi Amana, which make prefinished ‘boxes’ and they can be entirely fabricated – from staircases to service ducts and lift shafts. You put all the components together like lego.”

Off-site manufacturing, involving timber, has also been evident with the first of its two hotels opening next year. “It’s all delivered to us flat-packed and you can have a villa up within a week. There is no cutting or adjustments on site. The more we can bring in that’s largely completed, and use finishing trades to put together, the more we can reduce the footfall on the islands.”

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10,000+ workforce onsite +

1,500+

corporate employees

THE RED SEA DEVELOPMENT COMPANY

TRSDC TARGETS LEED PLATINUM STATUS While TRSDC is using ‘green concrete’ and trying to source low-carbon cement, it is also quarrying a volcanic ash locally for use in construction, and to reduce its carbon footprint.

“We want to be LEED Platinum, Gold is our fall-back position, and Silver will be minimum,” he said. “Everyone goes on about the premium – but I’m not sure it is, if you design it correctly and pay attention to your material selection.”

Power is another intriguing aspect. The project is off-grid with no connection to Saudi water or electricity authority (ACWA Power leads the consortium who won the contract). Two major solar farms on the coast will generate 2MW in the first phase, and battery is the nighttime power source.

“We also have a ‘zero discharge’ policy. The archipelago is a complex mix of sea and fresh water, with different saline contents. Effectively we’re taking the salt from the sea and putting it back, so you’ve got to do ‘depotion discharge’.”

Solid waste has to be removed by ship, and a construction waste management plant has been built.

“The advantage is there is no existing development or having to work within an established infrastructure. We’ve created the infrastructure and eco-system, so we can control our destiny more.”

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“ We have total visibility on the entire supply chain and immerse ourselves with BIM360” IAN WILLIAMSON

CHIEF PROJECT AND DELIVERY OFFICER, THE RED SEA DEVELOPMENT COMPANY

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THE RED SEA DEVELOPMENT COMPANY

“Pod technology is also getting really advanced and the Saudis are great at precast panels, but I think it will go a step further, as materials become more refined.

“We’ve just done a 100-metre borehole on one of our islands. Typically we take 20-25m samples for geotechnical studies, to analyse the substructures, but we needed to do a core structure which was interesting.”

Williamson said TRSDC is committed to building a ‘smart destination’, built around enhancing the guest experience and operational efficiencies. Luggage will be transported straight from the purpose-build airport to guests’ rooms.

New technologies are constantly being courted, but it hasn’t found a way of using 3D printing yet on site.

What is clear is that from the F1 tracks to the Red Sea islands, Saudi Arabia is entering 2022 in top gear.

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