Business Excellence - Issue no 1462

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Metro Panama Salmones Camanchaca Iberostar Club Boa Vista

ISSUE 1462 Mota-Engil Africa

Hand in hand with Africa

in a shared future Last year Mota-Engil celebrated 70 years of existence as a recognised top 100 construction company worldwide.

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THE TEAM RESEARCH Wisner Gomes w.gomez@bus-ex.com Eurides Lopes e.lopes@bus-ex.com Maria Cobano m.cobano@bus-ex.com

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CONTENTS 6

INDUSTRY ANALYSIS

Brazil’s Infrastructure Outlook 2018

Brazil’s economy has begun to recover since a series of economic and political crises which have dogged the country since 2013.

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INDUSTRY ANALYSIS

European Aviation Outlook 2018

Historically, the aviation industry has been one of the most cyclical of all: when markets were buoyant, so too was the aviation industry.

COVER STORY

10 Mota-Engil Africa

Hand in hand with Africa in a shared future Last year Mota-Engil celebrated 70 years of existence as a recognised top 100 construction company worldwide.

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Riyadh Metro

Revolutionizing Transport in Saudi Arabia’s Capital City In the coming five years, it is believed that Riyadh, the ancient capital city of Saudi Arabia, will become the biggest city in the Middle East after Istanbul, reaching a population of 10 million.

Metro de Panama

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21st century infrastructure in Brazil’s most historic city International sporting events can have highly positive long-term effects on the cities which host them.

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SLC Agricola

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Salmones Camanchaca:

The first of its kind in Central America Panamanians had been dealing with bad transportation for many years.

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Constructora AE

Dominican Republic’s built environment in the best hands Dominican Republic is the tenth largest economy in Latin America and the largest in the Caribbean and Central region, making it a very attractive destination for foreign investment

Jorge Chavez International Airport

Higher, always higher If you are on an international flight to Peru, you will land at Jorge Chávez International Airport which is situated in the capital Lima.

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CCR Metrô Bahia:

Order and progress in Brazilian commodities Brazil is sometimes referred to in terms of “three, four and five.”

Strong emphasize on sustainability The Chilean company was founded in 1965, taking its name from the distinctive cloud patterns that form over the coast where its fishing trawlers operate.

106 ALMA Observatory

Where science never stops It’s been nearly five years since we last spoke with the team at ALMA.

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Iberostar Club Boa Vista

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The start of a new dawn for Cape Verde tourism One of only five island nations on the continent of Africa.

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Brazil’s Infrastructure Outlook 2018 Brazil’s economy has begun to recover since a series of economic and political crises which have dogged the country since 2013

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etween Q1 2015 and Q4 2016, GDP shrunk in eight successive quarters.

The lava jato (‘car wash’) scandal, which continues to rumble on, to date has indicted over 170 high-profile people and involved 16 of Brazil’s largest companies.

With elections looming in 2018, the new President will benefit from an economy which is slowly finding its feet again, but will still face massive challenges. Not least of this is dealing with Brazil’s creaking infrastructure.

Brazil’s territory is the world’s fifth largest by area and home to the world’s fifth largest population, creating obvious challenges in infrastructure.

The World Bank, looking at infrastructure investment gaps - the difference between investment needs and current trends in investment

“BRAZIL’S TERRITORY IS THE WORLD’S FIFTH LARGEST

BY AREA AND HOME TO THE WORLD’S FIFTH LARGEST POPULATION”

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- predicted Brazil to have a US$1.1 trillion infrastructure investment gap between 2016 and 2040. It’s a considerable sum - by their estimates, the third largest of any country after the United States and China.

The key to much of the infrastructure planned in the country lies in finding suitable partners for PPP (Public-Private Partnerships) projects. The incumbent President Michel Temer has already got the ball rolling by bringing in private investment on several infrastructure projects, including auctioning off some publicly-owned airports. This is likely to continue under the next President.

There’s every sign in 2018 that much of the private side of PPP infrastructure projects will be funded by China Inc. Highlight infrastructure projects involving Chinese corporations and Brazilian assets include the State Grid of China acquiring CPFL Energia for $12.3 billion, Sinopec acquiring 40% of Repsol Brazil, and China Merchants acquisition of 90% of TCP ports for $1.2 billion.

Since 201 6 , when 145 PPP infrastructure projects were outlined by the Brazilian Government, 75 such projects still remain. A target area for

INDUSTRY ANALYSIS

the coming investments will be in the country’s practically non-existent rail network. This has long been seen as an Achilles’ heel in Brazil’s infrastructure network, particularly in the transporting of its agriculture exports to its ports.

Marcelo Kayath, former head of Credit Suisse in Brazil sees the natural synergies that exist between China and Brazil in the years ahead: “I think it’s a natural match.

China has the excess capital and knowhow in infrastructure and they need what we have, which is raw materials and food.” And as China’s investments globally shrink, they’re growing in double digits in Brazil.

However, China is not alone in looking to invest in Brazil’s PPP-backed infrastructure. The auctions to participate have already attracted interest from 17 different countries and this trend is

“BRAZIL CAN FINALLY BEGIN TO DEVELOP ITS INFRASTRUCTURE WHICH HAS FOR SO LONG HELD BACK ITS MASSIVE POTENTIAL” likely to continue in the years ahead as the economy strengthens and a degree of political stability that institutional investors are comfortable with, returns.

The hope in 2018 is that with a relatively weak Brazilian Real, an improving economy, a political class which is being reshaped because of Lava Jato, and a new government in the second half of the year, Brazil can finally begin to develop its infrastructure which has for so long held back its massive potential.

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European Aviation Outlook 2018 Historically, the aviation industry has been one of the most cyclical of all: when markets were buoyant, so too was the aviation industry

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ut the number of failed airlines is testament to an industry with massive capital expenditure and volatile cash flows. In 2018, with air travel becoming more of a commodity than a luxury, this is less true than ever.

Nowhere is this better exhibited in Europe than through figures for LCC (low cost carriers) on the continent, which stand at 37% of all commercial airline seats sold on the continent. The largest commercial airline is Ryanair, taking the lead from Lufthansa in 2017 and is expected to strengthen its grip on the leadership position beyond 2018.

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In the next 20 years or so, internal flights in Europe alone are forecasted to grow by over 3% per annum, with revenue per passenger kilometer (RPK) expected to double in line with this growth. Flights from Europe to more exotic destinations are forecasted to grow even more; for example, by 4.5% per year to Asia and 4.3% to Latin America.

As in the years to 2018, competition for passengers will be one of the main drivers of this growth but historically low oil prices, increased demand for travel in emerging markets where incomes continue to rise, increased fuel efficiency in aircraft and even new routes will also contribute to the continued upswing in air travel.

All of this is good news for the traditional aircraft manufacturers for the European market - Boeing and Airbus, with both firms expecting to grow their output in

INDUSTRY ANALYSIS

Europe by around 3.5% every year to 2035. Both firms expect the majority of their production over this period to be in single-aisle aircraft (approximately 60,000 aircraft combined) reflected increasing growth in short-haul journeys.

The downside of the trend for shorthaul journeys in Europe, if there is one, is that airports tend to be smaller and regional. As such, in 2015, only 5 of the world’s largest airports were located in Europe. While this may remain the case in the years ahead, increased traffic will at least generate more revenue in these hubs - with larger airports being far more profitable across the board than their smaller, regional counterparts.

When famed US investor Warren Buffett said that investors would have been better to shoot Orville Wright down than to invest in the aviation industry in

“THIS GROWTH, IN EUROPE AND BEYOND, CAN ONLY BE GOOD NEWS FOR THE REST OF US”

2007, he may have spoken too soon. The airline industry goes from strength to strength, and even Mr. Buffett has gotten involved subsequently having realized this.

This growth, in Europe and beyond, can only be good news for the rest of us. 2017 was the safest year on record for airlines at the same time that European airlines such as IAG, Lufthansa and Ryanair all recorded annual net profit of over $1.5 billion. In 2018, Orville Wright looks he was a much better investment than Mr. Buffett predicted a little over 10 years before.

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Mota-Eng

HAND IN HAND IN A SHARE

Last year Mota-Engil celebra a recognised top 100 constr WORDS BY

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Michael Minihan

gil Africa

D WITH AFRICA ED FUTURE

ated 70 years of existence as ruction company worldwide.  RESEARCH BY

Wisner Gomes BUSINESS EXCELLENCE [ ISSUE 1462 ]

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MOTA-ENGIL AFRICA

ast year Mota-Engil celebrated 70 years of existence as a recognised top 100 construction company worldwide.

They have a presence in three continents spanning 22 countries with an employee headcount of over 25,000 employees.

BE Africa sat down with Manuel Mota to discuss their projects and expansion into several new markets in Africa. Mota-Engil Africa appointed Manuel Mota as their CEO in 2016. Mr Mota graduated with a Masters in Civil Engineering from the University College London and has a long history with the company. He told BE Africa that their competitive edge lies in the fact that the company has a hands-on approach and can move skilled people and equipment across borders to meet the needs and demands of

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which incorporates service and commitment to its customers; the personal and professional development of its employees; and a strong appreciation, acknowledgement and creation of value for their shareholders.

Mota- Engil: A giant with humble beginnings in Angola The company was founded in 1946 by Manuel António da Mota who set up Mota & Companhia which started timber operations in Angola and two years later moved into construction and public works. They became a public company in 1987 and listed on the Lisbon Stock Exchange. In the early 2000’s after the successful merger with Engil, the Group become known as Mota-Engil.

“We passed through several phases in Angola after its independence in the 1970s. We always worked closely with local players, and weren’t afraid to take risks” their clients. They are always respectful of the local context where they carry on business.

The Group has been present in Africa since its foundation, and has identified the growth potential of Africa for many years now.

The African subsidiary has recently expanded its presence into 14 African countries, after having successfully entered into 4 new markets in 2017 . They currently operate in Angola, Malawi, Mozambique, Cape Verde, Rwanda, Uganda, São Tomé and Príncipe, Uganda, Zambia, Zimbabwe, South Africa, Tanzania, Cameroon, Ivory Coast and Guinea-Conakry.

Mota- Engil Africa has diversified into many sectors and they operate several services in 14 African countries with over 12,000 employees. They have a triangular culture

Mota-Engil was able to build up its presence in Africa, despite some turbulent years across the continent. “We passed through several phases in Angola after its independence in the 1970s. We always worked closely with local players, and weren’t afraid to take risks. The reality is that we are, we were, and we will be an African company and you don’t turn your back on your home in difficult times,” emphasizes Mr. Mota.

The long-term commitment to a country is undoubtedly something others on the continent could learn from. In Africa, too often large companies exploit the assets to their own ends, leaving nothing in return. It hasn’t gone unnoticed with Mr. Mota, either: “Our strategy is always to act as a local company in global markets - not as an opportunistic

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MOTA-ENGIL AFRICA

global company working in a local market.”

The process of entering a new market begins with the aim of capitalizing on their focus areas of expertise: Public and private construction projects with focus in large insfrastructure projects. Whereas as mining, waste management and waste treatment are its main growth areas. Once it has a range of contracts, it can begin to expand its offering. Mr. Mota says: “We work in large scale infrastructure projects, energy projects and mining. We tend to work across a range of sectors and countries, leveraging on the know-how acquired globally by the Group.

By acting locally, but with global view we are agile enough to work in different projects within a country that can go from a million dollar project to a billion dollar project.”

And although the firm is now truly international, it clearly sees its base as Africa, as reflected by the scale of the resources that it has dedicated there. Mr. Mota says: “We work primarily with local resources in Africa. At the end of 2016, we employed 124,000 people across Africa, almost all of them Africans with only a 7% incorporation of expats.” These numbers are also likely to swell as the company continues to establish

“We work in large scale infrastructure projects, energy projects and mining. We tend to work across a range of sectors and countries”

This is a caption, hit return for another line

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Reduce your project cost Stock sales, rental and buy-back options of steel sheet piles, beams and tubes now available for temporary applications.

Did you know that ArcelorMittal Projects have stockyards in South Africa, Nigeria and Morocco?

ArcelorMittal Projects provides design and technical assistance from concept stage to execution on jobsite.

Get in touch, email us at projects.africa@arcelormittal.com

ArcelorMittal Projects Africa T +2781 043 9395 | projects.africa@arcelormittal.com www.arcelormittal.com/foundationsolutions

MOTA-ENGIL AFRICA

itself across the new markets entered, giving it a pan-continental presence.

Mota-Engil Africa stands as an autonomous business unit, fully integrated in the MotaEngil Group, a key player on the African continent. Mota-Engil was awarded at the Africa CEO Forum Awards with The International Corporation of The Year Award, in a ceremony held in Geneva and attended

by Manuel Mota, in recognition of the role the Group was playing in development in Africa.

Mota-Engil is Angola’s largest construction and public works company Mota-Engil Angola is a subsidiary of MotaEngil Africa and a 49% share is owned by a consortium of Angolan major entities

“The landmark construction of the Luanda International Airport which was completed in 1952, was the first major public work executed by Mota-Engil Africa in Angola”

such as Sonangol and Grupo Atlântico. The subsidiary is one of the largest construction and public works companies under Angolan law operating in the sector and with stakes in industry areas.

The landmark construction of the Luanda International Airport which was completed in 1952, was the first major public work executed

by Mota-Engil Africa in Angola. In 2003 the company completed the construction, rehabilitation and extension of the Cabinda Air Terminal. This was followed the construction of the Atlântico Towers Building with three distinct blocks in Luanda comprising office, residential and leisure facilities in 2004.

They were awarded the contract to rehabilitate and extend the 230-kilometre

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Financial City, located in Talatona, Luanda

“Construction of the Financial City, located in Talatona, Luanda comprises an area of 25,060m² consisting of four buildings” road from Saurimo to Muconda; the 124 km Dundo-Lucapa road; and construction of the 483 metre 4th of April Bridge in Catumbela.

The rehabilitation of Luanda Bay was a massive urban infrastructure project completed in 2015, which provides the coastline of the city of Luanda with modern road infrastructures, green spaces and shopping areas.

Another notable project completed was the reconstruction of the hydro-electric Calueque Dam on the Cunene River Basin in southern Angola in 2015. The project includes the rehabilitation and completion of the Calueque Dam with the addition of a hydroelectric plant and the installation of pumps and water pipes for irrigation water in Angola and Namibia.

Construction of the Financial City, located in Talatona, Luanda comprises an area of 25,060m2 consisting of four buildings of seven floors each providing mixed office, residential and leisure facilities, was awarded to Mota-Engil Africa. In 2015, they completed the refurbishment of a 100-kilometre-long road between Xaua and Catata. It includes the construction of five concrete bridges and all ancillary work comprising, inter alia, drainage and road markings.

Earlier this year, the company was awarded a contract to develop a section Golfe-Camama with a value of 178 million euros and the work will be executed within 10 months. The project has an extension of 10.5 km and includes the rehabilitation of the expressway Fidel

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BITUMEN SUPPLIES & SERVICES THE BITUMEN PROFESSIONALS BSS have been supplying Bitumen in Drums, Bags, Bitutainers as well as Bulk into Africa for the last 18 Years.

BSS own Bitumen tankers, bitumen sprayers,bitutainers, bitumen decanters, on site storage, Mobile bitumen Emulsion plants and mobile Bitumen Modifying Plants.

BSS is South Africas leading exporter of bitumen into over 25 African countries.

BSS offer to the mining industry specialised DUST SUPPRESSANT EMULSIONS to cure dust pollution on haul roads.

The services provided go beyond product and delivery. BSS provides technical assistance for application and construction techniques as a result of over 60 years’ experience in road construction.

Unit 6, The firs, 5 Humber road, Woodmead, Johannesburg, South Africa.

Tel: +27 11 803 9338 | Fax: +27 11 803 9881 | Email: reception@bsspty.com | Web: www.bsspty.com

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MOTA-ENGIL AFRICA

Castro Ruz/Camama – Pedro de Castro VanDúnem “Loy” Avenue and of the Camama/Via Expressa road junction, and micro and macro drainage networks, as well as the construction of the flyover in the road junction of Camama’s old roundabout.

Estradas do Zambeze Concession, Mozambique The company has a permanent contract to maintain a 200 km stretch of road across the Tete Bridge in Mozambique. In 2012, the company completed construction of the Olympic Village and Olympic Pool in Maputo comprising 27 buildings and 848 apartments as well as road access, public areas and infrastructure, parking lots and Olympic Swimming pools.

The Nacala Corridor Railway Project, Malawi The Nacala Corridor railway project links the Moatize coal mine in Tete Province, Mozambique, via Malawi, to Nacala Port, Mozambique over a total distance of 906 km.

Mota-Engil Africa was awarded both sections of the project in Malawi, comprising 245 km (Sections 3 and 5).

One section of the project entailed the construction and renovation of 100 km of existing railway and the other section entailed

“One section of the project entailed the construction and renovation of 100 km of existing railway and the other section entailed the construction of a new 145 km railway”

Tete Bridge in Mozambique

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The Nacala Corridor Railway Project, Malawi

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MOTA-ENGIL AFRICA

“We are a very hands-on company, For example, we try to mobilize our engineers, foremen and specialists across countries”

the construction of a new 145 km railway line from Kachaso on the Malawi-Mozambique border to Nkaya Junction in the district of Balaka, Malawi.

Tanzania’s $1 billion-dollar railway line Mota-Engil was awarded a contract for $1 billion in Tanzania, in partnership with the Turkish group Yapi Merkezi. The project will consist of the construction of a section of the railway that will connect Dar es Salaam to the neighbouring countries of Rwanda and Burundi. This first 202-kilometre section will be built in a period of 30 months, corresponding to the execution of the Dar es Salaam – Morogoro section; the overall project will have 2,200 km of railway line connecting the tree countries.

Partner firms “Subcontractors are a very small percentage of the total amount of our workforce,” says Mr. Mota, pointing to the more than 4,000 pieces of capital equipment the company employs in Africa. “We are a very hands-on company, For example, we try to mobilize our engineers, foremen and specialists across countries” he is keen to point out. Even taking that into account, the company has a number of key partners to maximize its project outcomes.

Often, we find that even with the best intentions, many companies operating in Africa in particular, are bound to a certain extent by the lack of human capital on the ground - turning to partners from outside the continent for assistance. This isn’t the case with Mota-Engil, looking into their list of partners, they are mostly African companies.

Sustainability: In each attitude, a shared future Mr. Mota believes that sustainability represents first and foremost the commitment with Africa, its people and its development. This is Mota-Engil’s sustainability strategy from an economic, political and environmental perspective.

The company is aware and actively committed to the role it has to play to deliver an agenda for sustainability in Africa which

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“We believe that a more prosperous and fair society can only be achieved where economic growth, social cohesion and environmental protection go hand in hand, ensuring the improvement of quality of life for the present and future generations” is implemented on a daily basis in each one of the fourteen countries where it operates, and in which the social responsibility policy is a priority.

Mr. Mota told BE Africa: “We always tend to leave behind something for the locals to enjoy in the long-term. This means, they have water and energy and other infrastructure, which the locals can take advantage of in the future.”

Mota-Engil Africa has a social responsibility and sustainability policy which provides for effective contribution toward the integrated development of the communities where it operates, from a cultural, education, training and environmental perspective.

Mr. Mota said “We believe that a more prosperous and fair society can only be achieved where economic growth, social cohesion and environmental protection go hand in hand, ensuring the improvement of quality of life for the present and future generations.”

The Manuel António da Mota Foundation, a charitable foundation run by the company, sets a benchmark for other companies, not just in Africa but across the world. It has dedicated millions of euro to worthwhile causes across the countries in which it operates. It pays particular attention to supporting disability, infancy, youth and housing added Mr. Mota “We’re currently looking at projects in the countries we’re active in across Africa and we’re going to accelerate the number of programs that our foundation is active in.”

The Future: 2020 And Beyond Despite making impressive progress in the past forty years, it’s quite clear that Mota Engil has no intentions of slowing down. The world’s water issues will call for its services even more frequently than before, and the firm is keen to step up to the challenge. Its Stepup 2020 strategic plan outlines a vision to grow in Europe, Latin America and Africa.

Indeed, Mr. Mota noted “We are currently looking into Kenya, Ghana and Senegal.

We believe our current goal should be to strengthen in east Africa and to accelerate our operations in West Africa. For example, this year, we have been awarded our first contracts in Cameroon, the Ivory Coast and Guinea Conakry, all in completely different sectors of our activity.”

Infrastructure and capital projects are major drivers of social change in Africa, and an enabler of GDP growth. They have shown a long-term commitment to sustainable and inclusive growth in Africa. Hand in hand with Africa in a shared future.

MOTA-ENGIL AFRICA

 +351 214 158 200  geral@mota-engil.pt @motaengil en.mota-engil.pt

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REVOLUTIONIZING TRANSPORT IN SAUDI ARABIA’S CAPITAL CITY Riyadh Metro In the coming five years, it is believed that Riyadh, the ancient capital city of Saudi Arabia, will become the biggest city in the Middle East after Istanbul, reaching a population of 10 million. The arrival of its metro in 2018 is well timed then, promising to create a far more fluid transport system in this burgeoning city.

WORDS BY

Michael Minihan

 RESEARCH BY

Maria Cobano

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n the coming five years, it is believed that Riyadh, the ancient capital city of Saudi Arabia, will become the biggest city in the Middle East after Istanbul, reaching a population of 10 million. The arrival of its metro in 2018 is well timed then, promising to create a far more fluid transport system in this burgeoning city.

A metro has long been mooted for Riyadh, but things really picked up in 2012, when a tender for the project development got underway.

Hundreds of serious international construction and engineering companies put their names forward, with a consortia of international companies including Bechel, Larson and Samsung eventually winning the tender.

We took a look at the soon-to-open project, which is the largest ongoing transport infrastructure in the Middle East by some distance. As the world’s most up-to-date metro system, it is also arguably the world’s most modern, taking advantage of a large investment, significant advances in technology and a youthful, mobile population.

In total, the budget for this mammoth project comes in at around US$22 billion, making it one of the top 10 infrastructure projects in the world. As it nears completion, we thought it a good idea to look more closely at some of the reasons why this is not just one of the world’s biggest infrastructure projects, but also one of the most fascinating.

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“In total, the budget for this mammoth project comes in at around US$22 billion, making it one of the top 10 infrastructure projects in the world”

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Riyadh City

RIYADH METRO

“When finished in 2018, the statistics show that the Riyadh metro will be the longest in the Middle East, even surpassing the Cairo metro for length, with its 85 kilometres of new track” Project Parameters The parameters of the Riyadh Metro are astonishing, even when the budget is considered; The total excavation involved is 4.9 million cubic metres, while 387,000 tonnes of steel will be used in the project.

Other staggering figures include 300 kilometers of diverted utilities, including water (42 kilometres), power (168 kilometres) and telecoms (37 kilometres).

When finished in 2018, the statistics show that the Riyadh metro will be the longest in the Middle East, even surpassing the Cairo metro for length, with its 85 kilometres of new track. In addition, it will work in tandem with three lines of bus rapid transit (BRT), all integrated and colour-coded to makes passengers’ journeys as efficient as possible.

The system will feature 85 air-conditioned and wi-fi enabled stations, many of which are integrated with bus terminals, and creating business hubs in themselves. All of the trains are electric and unmanned, making it the first of its kind in the world on this scale - shuttling around 1.16 million people a day, quickly rising to 3.6 million people.

Most importantly, from the point of view of functionality, the metro will link important hubs such as the King Khalid International

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Airport, the King Abdullah financial district, all of the cities’ main universities, the downtown area and all the major public transport hubs.

Many of the stations will use solar powered technology to generate their electricity.

Sustainability The fact that the Riyadh metro is fully electrified means that the project has the opportunity to make a highly positive impact

“In total, the project aims to change public transport’s share of journeys in the city from a little over 2% currently to over 20% when finished.”

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RIYADH METRO

Metro Station Interior

43,000 jobs spread across 30 on carbon emissions in the Did you know? nationalities - contributing to city. Projections show that the the diversity of the city. After project will reduce the number Riyadh M etro all, contributing to the long-term of car trips made in the city by has created vibrancy of the city is what the around a quarter of a million approximately project is all about, and every trips each day, equivalent to 43,000 jobs effort has been made to engage around 400,000 liters of petrol spread across all stakeholders. each day.

30 nationalities Eng Alwalid Al Ekrish, In total, the project aims to - contributing to Director of Construction for the change public transport’s share the diversity of project is keen to emphasize of journeys in the city from a the city. this, noting: “The task is huge little over 2% currently to over in dealing sympathetically 20% when finished. This has an with questions and enquiries, economic divided for the city as and complaints, and providing well as an environmental one: It workable solutions. This involves constant will contribute an estimated US$320 million engagement at the personal level with the a year to the local economy, generating public and through social media in meetings significant employment opportunities for and explaining what traffic detours would local communities. mean in terms of access and urban impact On the topic of employment, construction and the duration of the works.” of the Riyadh Metro has created approximately

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RIYADH METRO

Project Partners and Suppliers Delivering a project of this size involves an extraordinary level of cooperation and considerable expertise, as shown by the requirement for 3 different consortia working on the project. The aforementioned 43,000 construction workers represent a broad swathe of companies, both local and international. Name checking them all would occupy a magazine in itself, but we can mention a few here.

In the construction phase, Mohammad Abdullah Alareedh Ltd.Co has provided much

of the heavy equipment required, including the EREX AC700, a telescopic boom mobile crane. ALAREEDH, another local firm, carried outinternal rigging and lifting studies to ensure that the lifting processes involved - and there were many - were performed to the strictest standards of safety.

Ulma construction in alliance with Attieh, an official partner of the Metro in Saudi Arabia, provided comprehensive formwork and scaffolding systems for the most important infrastructure involved in the project with concrete being provided by Eastern Precast

“The aforementioned 43,000 construction workers represent a broad swathe of companies, both local and international.�

The total excavation involved is 4.9 million cubic metres

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“If the statistics outlined in this article for the project weren’t dramatic enough, here’s another: when completed in 2018, the construction time for the Riyadh Metro will only have been 5 years.”

Unveiling the new Riyadh Metro Train

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RIYADH METRO

Metro Station exterior buidling

Concrete. The Arab Center for Engineering Studies (ACES) also provided insight into the complex engineering specificities in construction.

Further upstream, companies such as Siemens, Blakely Electric, Larsen & toubro performed various tasks on the huge technology side of the project. Traffic management has been looked after by Sets International while finally, Germany’s DHL will deliver 47 Bombardier trains sets from a production site in Sahagun.

achievement, given how long (and often over budget) projects like these come in at. Saudi Arabia is clearly in a rush to make progress.

When the Local Development Authority the ADA - took on 230 graduate interns in late 2017, it was a firm indication of their future plans for the metro: It will be an integral part of Riyadh life for the coming generations. In years to come, they’ll look back at 2018 as a landmark year in the development of the city and the country.

2018: A Landmark Year in Saudi Arabia

RIYADH METRO

If the statistics outlined in this article for the project weren’t dramatic enough, here’s another: when completed in 2018, the construction time for the Riyadh Metro will only have been 5 years. This is a remarkable

 info@riyadhmetro.sa @RiyadhTransport www.riyadhmetro.sa

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THE FIRST OF ITS KIND IN CENTRAL AMERICA Metro de Panama Panamanians had been dealing with bad transportation for many years. So, in 2009, the Martinelli government sets as one of its main priorities, the improvement of public transportation WORDS BY

Michael Minihan

ď ľ RESEARCH BY

Maria Cobano

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he city of Panama may only have around 1.2 million inhabitants, but this doesn’t stop it from being one of the most lively cities in Latin America. The city expanded rapidly in the 20th century thanks to its prominent position on the Panama canal, and is now home to over a third of its country’s population.

Inevitably, this rapid shift towards urbanization brought infrastructure challenges, leading to inner city congestion, longer traffic jams and haphazard sprawling development: all of the signs we’ve come to expect from quickly growing cities. As a result, in 2009, the country’s Martinelli government put public transport at the top of its agenda.

We recently had the pleasure of speaking with Roberto Roy, President of Metro de Panama, about how the project moved beyond a concept to being a reality, the impact it will have on the lives of the city’s 1.2 million inhabitants, and how, like almost all the most successful transport projects, the total impact on the city is more than the sum of its parts.

T

A Journey beginning in 2009 Mr. Robert Roy notes: “We started in 2009 as the Metro Secretariat, which was the entity created to take charge of the development and implementation of the metro system; a process that was very challenging, especially

“We started in 2009 as the Metro Secretariat, which was the entity created to take charge of the development and implementation of the metro system”

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METRO DE PANAMA

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METRO DE PANAMA

because it was to be the first metro built in Central America.”

Panama City’s crowded inner made planning for a dual bus and metro system even more of a challenge. As Mr. Roy explains: “Back in 2009 were the hectic early days of 12 hour days of planning. We put together the right team and specs, listed the prequalified contractors for Line one, and finally the winning bidder for construction; which began in March 2011.”

The line of the Panama City Metro, running from north to south through the city’s heart, is its busiest area. The city’s main avenues

already had little or no space for works, necessitating the need for an underground component - resulting in a more complex and costly project - but ultimately one that worked much better for the city.

As Mr. Roy explains, literally every aspect of the project was planned down to the last detail - even the method of tunneling: “We decided on a tunneling solution that called for two TBMs of the EPB type (Earth Pressure Balance) both for safety and environmental reasons. This also allowed us to work without disturbing people on the surface.”

“Today, we have the first metro line operating in Central America, which works magnificently, and the second line with construction at 55% advance to date”

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METRO DE PANAMA

“Initially, line 1 had 20 trains of 3 cars each, for a total of 60 wagons. It is being strengthened with brand new trains, to increase its daily capacity.”

Project Scope and Socioeconomic Impact To say that the metro has changed the fabric of the city would be an understatement.

Mr. Roy says: “Today it has an average daily demand of about 260,000 passengers, the record being 295,000. It seems that every day more and more people want to use the Metro. Its construction represented a US$2bn

investment with a further 2.5km phase at the planning stage.”

As line 1 continues to expand, line 2 is well underway. Mr. Roy estimates that it is around 55% complete at the time of writing, and should finish faster than line 1 given that it is completely overground. It is 21km in length, will cost US$2bn to construct and connects with Line 1 in the east of the city and lays the

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METRO DE PANAMA

groundwork for Line 2A, a future connection to line 1, and one to a future line 5, which will begin in April 2019.

Right now, line 3 is nearing the construction phase. Mr. Roy says: “Construction of Line 3 hasn’t started as of this date, nonetheless, Project Managers have advanced in all the

designs and are now working on the tender documents. This line will extend from the City of Panama all the way to the western towns and will cross the Panama Canal at a newly constructed bridge.” 634 Line 3 is also interesting for another reason: it offers a different transportation solution, in

“Construction of Line 3 hasn’t started as of this date, nonetheless, Project Managers have advanced in all the designs and are now working on the tender documents”

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GRUPO ITM

If you can imagine it, we can create it!

Founded more than 55 years ago, Grupo ITM has developed in many specialist markets in Central America, Panamá and the Caribbean. Our leadership manufacturing quality steel structures for Electrical & Communication Companies is solid, as well as warehouses, bus stations, civil works and any other custom steel construction such as the huge and modern Panama Metro Stations project.

Our annual production capacity is 30,000,000 pounds of steel and we currently have 54,000 mts2 of installed capacity around the region.

WHY YOU CAN TRUST US Experience Our people and systems are critical for excellent service delivery to our clients, that is why we have a professional, experienced and dedicated team focused on achieving a successful project.

Quality Control Our Quality Control ensures that each of our products are manufactures correctly, efficiently and with minimal waste that translates into satisfaction for our customers Delivery We understand the needs of our customers so we commit to being ready to ship their products as promised. Our products are exported to Central America, Panama and the Caribbean

with the best delivery times in the market.

Grupo ITM offers a wide range of turn-key solutions for your projects.

ANY PRODUCT ANY SIZE Conventional and 3D Our engineers have a diverse background with design and calculations, which ensures the most cost-effective and optimized Structural Design.

The bus and metro stations, warehouses, hangars, sports centers and parking are some of our most common products in the metal structures division, however our factory is qualified to create projects of any size and design, from small projects to big ones as Panama Metro Stations.

Panama Metro Stations This project is being one of our most challenging and rewarding projects; in joint-venture with Onddi from Spain we are manufacturing and installing the spatial structure for each station.

The continuous development of lightweight structural systems has made it possible for structures to carry a much greater load than their own weight. In this project, the spatial structures are at the forefront of this advance in the efficient use of materials, aesthetics and functionality.

All our team is committed to the success of this project which greatly contributes to the development of the country.

“Make joint-ventures is one of our success strategy to create amazing projects”

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Poles – Towers and Substations Grupo ITM is the leading manufacturer and supplier of street light poles, masts, transmission line poles, traffic signal poles, lightning conductor poles, flag pole and decorative poles in measures ranging from 6mts to 100mts in height. Energy Transmission and Distribution poles have been a primary business for us along these years.

Engineered for long-life, design flexibility and excellent value, the Grupo ITM telecom and transmission towers employs a variety of components to provide a reliable structure that exceeds our customer’s expectations.

“Like you, we are experts at what we do. We are passionate about exceeding your expectations, solving your toughest construction challenges and nurturing our successful business relationship.”

Hot Dip Galvanized Our factory is one of the largest and most environmentally-friendly full services in Central America. We utilize some of the latest

technology in Hot Dip Galvanizing to guarantee the life or your steel structures.

Electrostatic Painting Our experts match any paint color guarantee excellent quality finishes and greater resistance to corrosion and durability on all types of metal surfaces (ferrous and non-ferrous).

Expansion Plans In the medium term ITM Group plans to increase its participation in foreign markets, such as South America, as well as expand the company’s business opportunities to embark on JOINT-VENTURE with key companies in the United States, which we trust will be a complete success since we have the experience, an excellent cost, technology efficiency, export facilities and many other positive factors.

502 6644 0000 infor@grupoitm.net www.grupoitm.net

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Mexico, Central America, Panama and Colombia

“Contributing to the Panama Canal expansion” Complete retrofits and repowering of Panama Canal marine equipment: Pilot & crew boats, landing craft, drill boats.

• Marine Engines, Gears, MCD Clutches • Electronic Controls & Propulsion Systems • Heavy equipment for Construction, Mining & Agriculture - Sales & Rental • Generators - 5kw to 2000 kw Automotive Division: • Trucks, Vans, Pick-ups • Passenger Vehicles, Motorcycles

Visit our web site: www.tesa.com.pa

Heard Tell us about your company and we’ll tell everyone else www.bus-ex.com

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METRO DE PANAMA

“Lines 1 and 2 currently each employ about 4,000 people, most of them locals. In addition, all concrete construction, including stations, piles, columns and beams were manufactured with local components, including locallyproduced high quality cement and stone”

that it will be a monorail. It will have a longitude of 26km, 14 stations and a capacity of 30,000 p/h/s. Construction start is expected for the end of 2018. It’s easy to see how the nexus of these lines makes Mr. Roy state: “Metro de Panama is more than a huge asset to our city and economy: it offers quality of life and more time for families to be together.”

Continuing Panama’s mix of Local and International Lines 1 and 2 currently each employ about 4,000 people, most of them locals. In addition, all concrete construction, including stations, piles, columns and beams were manufactured with local components, including locallyproduced high quality cement and stone. The

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PANAMANIAN COMPANY COMMITTED TO AN ENVIRONMENTAL INTEGRATION. Hydroseeding, erosion control, revegetation, sediment control, dust control, gabions, geosynthetics.

LA PITA

Gupc Atlantico

PAC 3

PAC4

TELEPHONE: (507) 221.0544

www.grasstech.net

Whatever commodity you trade in, risk management is no doubt high on your list of priorities. It is vital to know the exact quantity and quality of the goods you are dealing with.This is where Inspectorate can help.

As one of the world’s leading inspection and testing companies we can help safeguard your interests and minimise associated risk.

Providing peace of mind, not only for you, but for financial institutions, traders, mines, producers, government agencies, consumers, industry, advisors… whoever else may be relying on you to get it right.

INSPECTORATE PANAMA, S.A. Phone: +507 314 1665 | Mobile: +507 6671 5433 Email: panama.ops@inspectorate.com panama.environmental@inspectorate.com Balboa, Panama, Panama

www.inspectorate.com

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SECTORS: Oil & Petrochemicals Metals & Minerals Food Safety & Agriculture Environmental Consumer Products

METRO DE PANAMA

local component also extends to service and maintenance contracts.

The list of local firms is a who’s who of the best companies that Panama has to offer.

These include Grupo Argos, Luis Berger, Grupo Flotec S.A., TKL Import Export S.A., Cardoze and Lindo S.A., and FCC Constuccion de Centroamerica, S.A., among others.

However, nobody could ever accuse Panama - home to the one of the world’s largest trade routes - of not being outward looking.

International construction firms were prominent in the development of lines 1 and 2, among them Odebrecht of Brazil and FCC of Spain, who were the general contractors chosen by tender.

There has also considerable cooperation and knowledge transfer from Metro de Barcelona, while Alstom - a world leader in rail transport - is the train and signalling control (CBTC) supplier, as well as the maintenance contractor. Other French firms involved were Thales, responsible for communications, and

“The local component also extends to service andmaintenance contracts.”

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“It will come as little surprise to anyone having read the above that Metro de Panama has an 85% acceptance rate among inhabitants of its city” TCP Rail, focusing on the rail systems.

A project on the move It will come as little surprise to anyone having read the above that Metro de Panama has an 85% acceptance rate among inhabitants of its city. Indeed, the expression, “Metrocultura” has entered the local lexicon. Its meaning according to Mr. Roy is “good manners, cleanliness and developing a sense of property in the citizens.”

However, nobody is sitting on their laurels.

Lines 2 and 3 will extend the breadth of the long city of Greater Panama, a city that is basically forced to grow linearly. Extra lines will also follow, bringing a world class transportation network to a city that not long ago could barely have claimed to possess one fit for purpose.

In 2019, the city of Panama will celebrate 500 years since it was founded. In that period, the country has has its fair share of turbulent times, but perhaps there is no better indication of the progress it is making than Metro de Panama.

METRO DE PANAMA

 504-7200  info@metrodepanama.com.pa @elmetrodepanama www.elmetrodepanama.com

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Construc

DOMINICAN RE ENVIRONMENT IN

Dominican Republic is the tenth largest economy in Lati region, making it a very attractive WORDS BY

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Michael Minihan

ctora AE

EPUBLIC’S BUILT THE BEST HANDS

in America and the largest in the Caribbean and Central e destination for foreign investment  RESEARCH BY

Maria Cobano BUSINESS EXCELLENCE [ ISSUE 1462 ]

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Hotel Majestic Mirage Bรกvaro, R.D.

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CONSTRUCTORA AE

Dominican Republic is the tenth largest economy in Latin America and the largest in the Caribbean and Central region, making it a very attractive destination for foreign investment in infrastructure, energy, real estate, tourism, agriculture, services and new sectors like film, technology and new media. The continued success of its national economy lies in the ability of Dominicans to leapfrog outdated development models, adopt new technologies, create a strong human capital base and remain a flexible host to incoming industries. This is the responsibility undertaken by construction firms like Constructora AE, SRL based in Santo Domingo and one of the country’s most recognized design and construction firms.

The team at Constructora AE is especially interested in transforming the country’s coasts,

D

Christopher Columbus, these same waters will incentivize new urban growth, provide alternate systems of transportation and transform it into the Caribbean regional hub of the 21st century.

We recently spoke with Constructora AE owners, the Espaillat Bonnelly family about the company and the positive impact it has made - and continues to make - on Dominican Republic’s built environment, since it was founded in 1990. They are Alberto J. Espaillat, President-Founder, and his wife Lourdes Bonnelly-Espaillat, vice-President.

We were also able to chat with the second generation on the firm: Carlos Espaillat, the chief project manager; Vanessa EspaillatLovett, associate architect, urban designer and planner; Enrique Espaillat, associate computer science engineer.

“In its early years, the company developed a robust portfolio of high-profile projects in the country” which are the Dominican Republic’s most valuable territory from both an environmental, socio-political and economic lens. Fifty percent of the world’s population lives in coastal regions most of which were initially developed due to their advantageous connection to waterborne transportation systems and rich coastal ecologies. Increased urbanization, climate change, coastal erosion and sea level rise requires architects, planners and engineers to re-envision coastal cities and towns through the lens of green infrastructures and sustainability.

These warm and crystalline waters served as key infrastructure during the development of the Taino indigenous people and the colonial urban economy. After more than 500 years after the foundation of the first permanent European settlement in the Americas by

Three decades of outstanding quality Since Alberto J. Espaillat founded his firm at the beginning of the 1990s, GDP in the country has grown 10-fold. This growth was driven in large part by significant foreign investment and the arrival of many international firms to the DR. It’s a level of growth, which has also been reflected within the firm: many of those same international firms turned to Constructora AE when they needed to develop hospitality, residential, corporate and industrial facilities.

As Alberto Espaillat explains: “In its early years, the company developed a robust portfolio of high-profile projects in the country, which included an expansion project for Colgate Palmolive’s production headquarters, the Executive Tower Manuel

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Arsenio Ureña CxA, the administrative offices and industrial warehouses for the newspaper Listin Diario, the headquarters offices for Grupo Ros and the executive tower for Grupo Metro, supervision for Banco Mercantil offices in the whole country and the warehouse and headquarters offices for ESPALSA in Santiago de Los Caballeros city.”

The firm’s early successes brought it wide recognition, allowing it to expand into the Dominican Republic’s burgeoning hospitality industry. It was able to begin lasting relationships

with some of the largest international hotel groups, who were all keen to develop signature buildings in the country. As Mr. Alberto Espaillat explains: “we’ve been able to build long-lasting relationships with these clients based on trust, hard work and transparency.”

Lourdes Bonnelly-Espaillat shares the competitive advantage the firm offers clients with a multi-generational integrated professional team: “Our team’s professional experience in DR, in both private and public sectors, plus our new highly qualified team of

“we’ve been able to build long-lasting relationships with these clients based on trust, hard work and transparency”

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CONSTRUCTORA AE

Hotel Majestic Elegance Bávaro, R.D.

young professionals, have given us a unique set of skills and relationships that can prove helpful for our client’s projects. No matter if they are small or complex large-scale projects, at Constructora AE, we know that time is money. Our integrated team can save our clients plenty of both.”

The international flavor also gives Constructora AE a level of flexibility that other firms in the market are generally unable to match, she says: “We are a flexible and lean team that expands and contracts in capacity according to the needs of our clients. We expand from an agile team of 25 to an efficient staff of 2,500 during the life of a single project.

This personalized approach allows us to stay competitive and in-demand for our local and foreign clients.”

A family firm with modern corporate standards The new generation of Espaillat Bonnelly family have all taken on roles within the

company, allowing the company to offer a new and diverse set of skills through a shared a set of common values. Vanessa, as Architect, Planner and Urban Designer living in New York is our strategic arm in approaching and attracting international clients from US and Europe. Carlos Espaillat, the firm’s Chief Project Manager and Structural Design Engineer, was recently responsible for delivering over 88,000sqm of hospitality infrastructure, as well as incorporating new construction technologies that help make projects more efficient and innovative. Enrique Espaillat, a computer science engineer living and working in NYC, is the firm’s technology advisor.

Carlos Espaillat comments about the leadership style that prevails at the firm: “The company’s leadership style is an inclusive, open-minded and visionary approach that is balanced with a realistic understanding of the local capacities and constraints. Constructora AE is a diverse team and has made it its mission to actively promote diversity and

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Hotel Majestic Mirage Bávaro, R.D.

hire more women engineers and designers, as well as continue to promote women in leadership positions. At Constructora AE, we treat everyone with the utmost respect, which has guaranteed the company’s ability to retain and grow a highly-qualified group of professionals.”

Partners and Suppliers The scale of the projects undertaken by Constructora AE require coordination with, and commitment from, a wide range of

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suppliers and partner companies. As Carlos Espaillat says: “Our suppliers are our allies in guaranteeing our competitiveness in terms of cost, quality and time.” Constructora AE has therefore already established strategic alliances with several firms in the Dominican Republic.

Primary among these partner firms is Grupo Atlántico RD, a construction materials conglomerate in the Dominican Republic, and two of its subsidiaries, Hormigones del Atlántico and Depositos Ferreteros, which has

CONSTRUCTORA AE

“We treat everyone with the utmost respect which has guaranteed the company’s ability to retain a highly-qualified group of professionals”

developed a genuinely symbiotic relationship with Constructora AE. For interior finishes, it calls on firms like Marmotech, S.A. and Carabela S.A. Other important suppliers and partners include Implementos y Maquinarias, S. A., which give it access to state of the art Caterpillar and John Deere construction technology, Ingenieria y Pavimentos Industriales, SRL for concrete solutions, Importadora Dominicana de Madera, CxA, IMDOMACA for timber, JJ Electric, S.A., its preferred electrical

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Alberto J. Espaillat Torres, President

“In the next 5 years, we aim to become a one-stop shop for our clients, one that strategically partners with the best in the field to deliver quality, sustainable projects�

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CONSTRUCTORA AE

Hotel Majestic Mirage Bávaro, R.D.

supplier, Tejar del Rey for roofing, and finally, CERARTEC for the windows and glass which adorn many of the projects constructed by Constructora AE.

A second generation building on strong foundations Constructora AE is increasingly an international firm. When Vanessa Espaillat Lovett founded Ella, a Global Design and Consultancy firm in New York in 2017, it was the latest step on this journey. Its presence in the US is likely to bring it projects there, opening a whole new horizon for the company. As she says: “We are looking forward to a broader diversification of our portfolio of services. In the next 5 years, we aim to become a one-stop shop for our clients, one that strategically partners with the best in the field to deliver quality, sustainable projects.”

“We are a local firm with global perspective.

We expertly advise our local and foreign clients on the best way forward for each individual project, helping them navigate our complex local politics, construction practices, legal framework and so on. We also pride ourselves in an ethical practice, which has allowed us to build strong relationships of trust with our clients.”

Home to the Americas’ oldest built settlements, Dominican Republic now has a firm in Constructora AE, which will be responsible for building much of its future.

CONSTRUCTORA AE

 809-686-0780  contact@constructoraae.com www.constructoraae.com

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Jorge Chavez Inte

HIGHER, ALW

If you are on an international flight to Peru, you which is situated i WORDS BY

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Michael Minihan

ernational Airport

WAYS HIGHER

u will land at Jorge Chávez International Airport in the capital Lima  RESEARCH BY

Maria Cobano BUSINESS EXCELLENCE [ ISSUE 1462 ]

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CEO of LAP, Juan José Salmón

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JORGE CHAVEZ INTERNATIONAL AIRPORT

isitors to the airport often spend time examining a replica of the Jorge Chávez Bleriot XI monoplane which can be found hanging from the ceiling of the main terminal of the airport. The airport is named after Jorge Chavez, a Peruvian aviator who made history as the first man to fly across the Alps.

In 2000, the Government of Peru granted Lima Airport Partners (LAP) the concession to operate and expand Lima Airport. LAP officially took over the concession in February 2001, for a 30-year period. The concession agreement provides that LAP is responsible for the construction, improvement, and exploitation of the airport.

At the time Jorge Chávez Airport handled about four million passengers per year. Today

V

only fitting that the Jorge Chávez International Airport honours that passion for flying high.

They do this on a year on year basis, winning accolades honouring them as the best airport in the region.

For the 7th consecutive year, the operator has won the Best Airport of South America award by Skytrax Research. This is accomplished through an internet survey of more than 12 million passengers from 108 countries. The survey considers 39 different criteria, including access to the airport, adequate passenger transit, comfort, atmosphere, cleanliness, waiting times, immigration services, signposting, baggage handling, security controls, personnel warmth and courtesy, ease of connections, and the variety of products and services offered.

“LAP’s mission is to offer passengers and airlines a memorable experience and to position Peru as the best connection point in Latin America” the airport has grown to handle five times that traffic. The airport saw a 10.1% increase in 2016, receiving record 18.8 million passengers.

In turn, the domestic cargo system, which has Jorge Chávez as its main articulation axis, transported 287.826 MT, of which 90.26% was international. Jorge Chávez accommodates 35 airlines which fly to 23 domestic and 46 international destinations.

The shareholders of LAP’s are Fraport AG (70.01%), International Financial Corporation (19.99%) and AC Capitales SAFI S.A. of Peru (10%).

Winner: Best Airport in South America Peru’s intrepid adventurer, Jorge Chávez’s legacy phrase “Higher, always higher’’ has inspired generations of Peruvian pilots. It is

Offering clients and airlines a memorable experience LAP’s mission is to offer passengers and airlines a memorable experience and to position Peru as the best connection point in Latin America. The operator has designed and implemented the citizenship promotion project “Smile. New airs in the airport”.

The project was successfully implemented with the support of 11 companies within the airport community. The Project promotes among all those who form part of, visit and use the airport facilities, the commitment to care for it, based on recognizing the rights and obligations they undertake during their stay.

Not to be outdone, the staff of the airport are raising the brand a mile high by showing their commitment to providing excellent

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service. They have scooped the award for Best Airport Staff in South America for the fourth consecutive year in 2014, in recognition of the outstanding service. In 2001 the company employed 2018 staff and had an outsourced compliment of 435 people. Now the company provides employment for 447 staff and 768 outsourced personnel as a result of the exponential growth during that period.

CEO of LAP, Juan José Salmón believed that the employees should be credited for the many achievements and accolades that the company has garnered over the past 16 years.

LAP offers a work environment that

promotes employee development, both personal and professional. “This approach has enabled us to join in 2016, for the first time, the Great Place to Work (GPTW) ranking as one of the best companies to work in in the country,” said Salmón.

Their Training Plan has six programs at the top level focussing on the Management Committee which provides specific training to chief office managers. They have a Leader School which develops and enhances the skills of the leaders of the company.

In 2016, employees were trained in Business English and a managerial skills workshop.

“CEO of LAP, Juan José Salmón believed that the employees should be credited for the many achievements and accolades that the company has garnered over the past 16 years”

Departure

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Terminal personel

An integrated model Professional Development Did you know? was offered to 2 employees to for sustainability LAP has built their social carry out postgraduate studies. responsibility model on Compliance is compulsory and In 2016 L AP 10 strategic sustainable all employees are trained in trained 71 management priorities .

Occupational Health and employees and This is underpinned by their Safety, mandatory by law, the LAP Academy commitment to provide aviation internal policies or norms, offered 12 courses and commercial services among others. In 2016 LAP to approximately with the highest standards in trained 71 employees and the 300 students efficiency, safety and respect for LAP Academy offered 12 courses our environment. The operator to approximately 300 students. actively seeks opportunities to Committed with the security promote relationships of trust and generate and safety of all of its passengers and visitors, value for their stakeholders.

Lima Airport Partners organizes every Social and environmental responsibility is two years a General Accident Simulacrum, one of the core principles of LAP’s business. according to the regulations established by For the first time in 2014, LAP calculated and the DGAC (a Spanish acronym for General certified its carbon footprint, in accordance Directorate of Civil Aviation), with the with ISO 14064-1. This makes LAP one participation of the Peruvian Fire Department, of the first certified airport operators in Regional Directorate of Health - Air Health, South America. An interdisciplinary team Peruvian Air Force - Air Wing No. 2, Peruvian “ECOMISION” was installed to identify and National Police, among other key institutions.

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JORGE CHAVEZ INTERNATIONAL AIRPORT

implement measures to reduce LAP’s footprint in the up-coming years.

Health and safety targets are also part of the general corporate targets. These include identification of hazard risks in workplaces and the reduction of accident rates. Participation in company health safety training sessions is mandatory for all employees. LAP also audited 63 companies based at the airport for compliance with the statutory regulations.

Capital expenditure has benefited the Peruvian economy Jorge Chávez is one of the fastest growing airports in the region. At the time of the concession, the airport was suffering from a 40-year stint of lack of investment in maintenance and modernization.

The Peruvian Government decided that

over an eight-year period considerable investment in infrastructure and equipment should be carried out. This period is known as the Initial Period. After that period, the company worked hard to position Jorge Chávez as an international hub for the region, not only because of its infrastructure, but also through its service. The airport has a privileged location and makes it a key interconnection point for passengers in the region. LATAM and TACA, two important foreign airlines, have established Jorge Chávez as their hub.

Since its commencement of operations, LAP has contributed $2 billion to the state coffers and capital expenditures of about $390 million have benefited the economy.

The latest financials show that the airport achieved growth of 10.6% between 2001 and 2016 generating economic value of more

Security is important to LAP

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than US$ 316 million. In 2016, income from non-aviation services reached more than US$ 80 million.

Phase 1 of the project saw the expansion of the passenger terminal to 65,528m2 and the installation of seven passenger loading bridges. A new domestic and international concourse as well as a 5,500m2 commercial area (“Peru Plaza”) was constructed.

Phase 2 saw further expansion of the International Concourse by 8,850m 2 ; construction of seven new departure lounges; installation of seven additional PLBs; and opening of four new commercial franchises. The Central Concourse by 5,301m2.

The immigration areas located there were enlarged; and six and four new arrival and departure control positions, respectively, were put in place. The security control area was reconfigured and five new commercial outlets were inaugurated.

The Domestic Concourse was also expanded by 4,146m2 . Five new departure lounges were built there and five new PLBs were installed. Internal remodelling of the Central Tower and reinforcement of the terminal took place making it fully earthquakeresistant. The enlargement of the South Platform by 12,000m2 and construction of an exit taxiway to allow cargo aircraft to reach their parking positions more rapidly in the airport’s south area completed the project.

Happy customers

Government of Peru greenlights airport expansion project LAP has recently signed an amendment to the concession agreement with the Government of

“Phase 1 of the project saw the expansion of the passenger terminal to 65,528m2 and the installation of seven passenger loading bridges”

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Plane ready at platform 1

Peru giving them the greenlight to commence with their major expansion programme which is scheduled for 2018.

The government will provide land for the $1.5 billion expansion programme which will be 100% funded by LAP. The expansion will provide a second runway, a new state-of-theart passenger terminal and other development upgrades required to deal with the increase in traffic.

It is expected that the third phase of the expansion project includes a second runway, more aircraft parking positions, new taxiways, and adequate infrastructure to increase Jorge Chávez International Airport’s operational capacity.

Juan José Salmón pointed out that both the environmental management and good relations with the adjacent community

were key to maximize the positive impact of the airport. Their Environmental Impact Assessment (EIA) commits them to work closer with their neighbours and strive to reduce the emissions and energy consumption resulting from our operations. The operator conducted two meeting days with leading players of the different communities, such as leaders, representatives of associations in the communities and management boards.

JORGE CHAVEZ INTERNATIONAL AIRPORT

 (511) 517-3100  info@lima-airport.com www.lima-airport.com

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CCR Met

21ST CENTURY IN IN BRAZIL’S MOST

International sporting events can have highly positive l example can be seen in Salvador, Ba WORDS BY

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Michael Minihan

trô Bahia

NFRASTRUCTURE T HISTORIC CITY

long-term effects on the cities which host them. A prime ahia on the northeast coast of Brazil.  RESEARCH BY

Eurides Lopes BUSINESS EXCELLENCE [ ISSUE 1462 ]

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nternational sporting events can have highly positive long-term effects on the cities which host them. A prime example can be seen in Salvador, Bahia on the northeast coast of Brazil. The former colonial town was one of the host cities for the 2014 world cup when it visited Brazil. Thankfully, that tournament has had - and will continue to have - a positive long-term impact on the city’s infrastructure.

One such example of this is the city’s Estádio Fonte Nova, home to one of the club’s two football rivals. It replaced a decrepit regional stadium that came before it and gave the surrounding area a new impetus.

But better still has been the impact on the city’s transport infrastructure, as seen in CCR Metrô Bahia, its rail network. We recently

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system and start the construction of Line 2.

CCR Metrô Bahia built new subway stations and the center of operations and maintenance, and was responsible for the construction and administration of 10 bus terminals. The concession also controls the operations and maintenance of the subway system, having acquired the trains and systems such as signaling, telecommunications and Operation Control Center (OCC).”

CCR Metrô Bahia is the concessionary responsible for the construction and operation of the subway systems in Salvador and neighboring Lauro de Freitas. The scale of the investment gives some indication of the project’s reach. Mr. Valencia says: “Total investments were R$5.6 billion (approximately US$2 billion), but this will continue to increase,

“In Bahia, the activities began in 2013, with the challenge to conclude the construction of Line 1 of Salvador subway system and start the construction of Line 2” spoke with Luis Valencia, its President, about the difference it has made to the city.

Putting Salvador on the right track Despite coming to prominence in the years immediately before the 2014 World Cup. As Luis Valencia explains, the company CCR was created almost 20 years ago in 1998 and issues its first shares shortly afterwards in 2002.

Since then, it has expanded into transport activities all over Brazil and even moving into some airport services in the United States. In Bahia, it is no exaggeration to say that it has transformed the city, even including 10 bus terminals in Salvador.

Mr. Valencia says: “In Bahia, the activities began in 2013, with the challenge to conclude the construction of Line 1 of Salvador subway

and the project has involved the CCR Group, the State of Bahia and the Federal Government.

This 30-year concession (2013-2043) will promote investments in the construction of subway stations, acquisition of equipment and systems, adaptation and renovation of trains, maintenance and operation of Passenger Integration Terminals (urban and metropolitan buses) and subway stations.”

When finished, the subway system will have 42 kilometres of track, 23 stations and 10 bus terminals, all managed by CCR Metrô Bahia. Currently, 19 stations and most of the 2 lines are accessible to the public, and the total project is expected to be delivered by the end of 2017. The project is also ISO 9001 certified, reinforcing the company’s commitment to all of its stakeholders.

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More than a transport network As Mr. Valencia tells us: “one of the benefits of the subway system implementation by CCR is employment generation. This project has already employed about 8,000 direct, indirect and outsourced people, and 96% of this workforce is from Bahia. Around 220,000 people take the subway every day and we expect to have more than 700,000 people a day in the subway system after the airport starts opening.” Or in other words, more than 10% of the city’s population

- creating, Mr. Valencia says, more than 5,000 indirect jobs.

Mr. Valencia therefore explains that the work of the Salvador and Lauro de Freitas subway system has become a driver for the development of Bahia, contributing to job generation and attracting for economic development actions. The urban space has also received real estate investments, with increased commercial and social use of the surrounding areas and the installation of health, education, culture and entertainment

“The CCR Group is committed to strengthening the domestic economy by prioritizing the material suppliers located in the region where it operates”

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made significant contributions to equipment, as well as real Did you know? organizations, both charitable estate appreciation. and environmental, throughout He says: “The CCR Group is the great Salvador region. These committed to strengthening the Along Line 2, include juvenile orchestras, domestic economy by prioritizing CCR Metro Bahia which bring music to the the material suppliers located in is building a 12 poorest children of the city, an the region where it operates. In km cycle path, ongoing volunteer program for Bahia, the MAP Group currently integrated into the its own workforce, and even the holds seven agreements for new landscape of city’s first funded study into its the provision of cleaning and Avenida Paralela remarkable history. surveillance services to the Regarding the metro itself, Salvador and Lauro de Freitas Mr. Valencia says: “the subways subway system, representing system adopts sustainability 450 direct employees working principles because it uses non-polluting, in the stations and terminals, and an amount clean and renewable electricity, free of of approximately R$ 18 million.”

CO2 emissions, which means less carbon dioxide in the atmosphere, reduced street A sustainable solution for Salvador noise, less pollution and more quality of life.”

If its economic impact on the city wasn’t As Brazil’s third largest city, it is important enough, CCR Metrô Bahia also takes its role as to note that because of CCR Metrô Bahia’s a corporate citizen very seriously. It has already

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Heard Tell us about your company and we’ll tell everyone else www.bus-ex.com

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“Not surprisingly, companies are more than happy to have their names associate with the regeneration of Salvador being led by CCR Metrô Bahia”

efforts, it leads in terms of the sustainability of its transport infrastructure.

Furthermore, he adds: “Along Line 2, CCR Metro Bahia is building a 12 km cycle path, integrated into the new landscape of Avenida Paralela. Other initiatives, such as the construction of rainwater retention tanks for use in toilets and LED lighting, were also incorporated in the system. The landscape project of Line 2 foresees a green corridor with three times more trees than the original project, contributing to environmental sustainability. Under this project, more than 6,000 trees and palm trees will be planted.”

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“The Brazilian national flag carries the motto, ‘ordem e progresso,’ meaning ‘order and progress’” Partners and providers Not surprisingly, companies are more than happy to have their names associate with the regeneration of Salvador being led by CCR Metrô Bahia. These include international giants like Hyundai-Rotem, responsible for providing the network of 40 trains and Siemens,

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responsible for much of the technology used on the line, such as signalling systems, electronics and data.

Other companies include Swiss-Swedish conglomerate ABB, which caters to the network’s complex electrical system and Thales Canada. Local and Brazilian firms are

CCR METRÔ BAHIA

also represented; much of the construction was carried out by Ferreira Guedes S.A. and BP Construções Metálicas ltda. Legal representation on the project was provided

by Brandão and Tourinho Dantas Advogados, one of Salvador’s oldest legal firms.

completion of both Salvador metro lines, simultaneously giving Salvador a transport network that any 21st century city would be proud of. Order and progress indeed.

Ordem e Progresso

CCR METRÔ BAHIA

The Brazilian national flag carries the motto, ‘ordem e progresso,’ meaning ‘order and progress.” It seems to be embodied in what CCR Metrô Bahia is doing in the country’s first capital. Exactly 20 years after the company itself was first founded, it will celebrate the

 (71) 99239-3282  camila@darana.com.br @MetroBahia) www.ccrmetrobahia.com.br

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SLC Ag

ORDER AND PROGRESS IN

Brazil is sometimes referred to in terms of “three, fo its fourth largest population WORDS BY

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Joseph Philips

 RE

gricola

BRAZILIAN COMMODITIES

our and five.” It is the world’s third largest territory, and its fifth largest economy

ESEARCH BY

Michael Miniham BUSINESS EXCELLENCE [ ISSUE 1462 ]

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razil is sometimes referred to in terms of “three, four and five.” It is the world’s third largest territory, its fourth largest population and its fifth largest economy. Since the country’s foundation, commodities have constituted a significant part of that economy and as a result, the country is home to some of the world’s most prominent players in the sector.

Before many the current cohort of companies arrived to take advantage of Brazil’s agricultural riches, SLC Agricola was already a household name in Brazil. It was founded in 1977 by the SLC Group, and focuses on the production of cotton, soybean and corn. 30 years after its foundation, in 2007, the firm listed on Brazil’s BOVESPA stock exchange making it an industry reference both in Brazil and internationally.

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these operations, according to Mr. Logemann, is just under 400,000 hectares.

He says: “We currently operate 14 production units located across six Brazilian states, totalling 395,141 hectares. The breakdown is roughly 230 thousand hectares of soybeans, 87,500 hectares of cotton, 72,000 hectares of corn and nearly 5,000 hectares of other crops such as sunflower, wheat, corn seed, soybean seed and sugarcane.”

The company has well-developed sales channels for all of its output both domestically and internationally, as Mr. Logemann explains: “The grains are mostly sold do trading companies, which then export a good part of the product. On cotton, we sell only a minor portion of our output to the domestic market, and export around 50% directly to the Asian textile market, delivering the product on the

“The grains are mostly sold do trading companies, which then export a good part of the product” We recently caught up with Frederico Logemann, Investor Relations Manager at SLC Agricola, who took time out to tell us about the company, its commitment to sustainability and its plans for the future. Mr. Logemann began by outlining the company’s operations in Brazil, spread across six separate states and extending from the North East right down to Porto Alegre in the South.

A diversified approach, a nationwide presence SLC Agricola has developed a hybrid business model, which can be divided into three separate categories: agricultural operations on its own land, agricultural operations on leased land (and joint ventures) and the acquisition of raw/pasture land for transformation and sale. The total size of

Asian port. The balance is also sold to trading houses, that the export the fiber.”

Mutually beneficial and long-lasting partnerships SLC Agricola’s partnership with John Deere, when it still produced, machinery, back in 1977 was one of the catalysts behind mechanization in the Brazilian agriculture industry and it was just one of many partnerships which the company has developed over its history, to its own benefit, but also to the benefit of the wider Brazilian community.

The company has two joint ventures: the Planeira Farm, which it operates with the Dois Vales Group, and SLC-MIT, which it operates with one of Japan’s largest industrial conglomerates, Mitsui. And although SLC Agricola employs over 2,700

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people - sustaining many Brazilian companies indirectly as a result - most, but not all, of its partnerships are with international firms.

Mr. Logemann tells us: “Most of our largest suppliers are multinationals with operations in Brazil. To name a few, we have names like Monsanto, Bayer, Yara, Kepler-Weber and Syngenta. We also buy fertilizers from large trading companies, such as Bunge and ADM. What we source locally, or close to the farm sites, is labour, while some of the employees on the operational level come the farm vicinity.”

Sustainability in inputs and outputs

Sonhamos grande como a SLC. Temos orgulho em investir em soluções que alimentem o mundo, respeitem o planeta e impactem as gerações futuras.

As one might expect from a company of SLC Agricola’s size and industry, sustainability is at the heart of its operations. It regards it as a core competency, and is one of the pillars of the company’s growth strategy. The company’s management now have to consider sustainable development in every aspect of the planning, implementation and operation of their projects or areas.

This commitment is also in evidence by several ongoing programs that SLC Agricola implements. Among them are the “Sowing the Good” Program, which was founded in 2011 by the Social Cotton Institute (SCI) to improve social and environmental action among cotton producers. SLC Agricola won the Best Landfill and Waste Management award in 2016.

SLC Agricola also actively participates in

“As one might expect from a company of SLC Agricola’s size and industry, sustainability is at the heart of its operations”

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effluent for garden irrigation the Water Producer Program, Did you know? and road humidification. It also which aims to reforest deforested has put in place strict measures areas of the river basin on the for kitchen oil and solid waste, Queima Pé River in the state Where waste is where it recently invested around Mato Grosso. As Mr. Logemann concerned, the US$500,000 in infrastructure points out: “supported the firm has invested for temporary storage of waste Project by building level curves, nearly US$1m in and briquetting. aiming rain water contention a state of the art avoiding erosion and soil silting.” effluent treatment Social Programs Even at non-agricultural system, which SLC Agricola prides itself company sites, SLC Agricola repurposes on its CSR initiatives. Mr. is making an effort to improve effluent for garden Logemann says: “we encourage sustainability. In 2016, it began irrigation and road our employees to work as installing photovoltaic roofs on humidification. volunteers through the Social many of its buildings to absorb and Environmental Action heat and reduce the energy Group (GAS) implemented at all consumption of its buildings. units, where citizenship projects related to Its buildings have also moved towards environmental and social issues are carried maximizing natural lighting with translucent out, with a focus on improving the quality of tiles and natural ventilation systems. life of local communities. This Group is formed Where waste is concerned, the firm has by around 100 volunteer employees.” invested nearly US$1m in a state of the art He continues: “Until now, around 5,000 effluent treatment system, which repurposes

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people per year are benefited by the GAS projects. A good example is the Furnishing Lives Project, where the Company employees teach volunteers how to produce manually a shower and feed chair made from PVC adapted for children with multiple disabilities who received assistance from Kinder, a philanthropic organization in the city of Porto Alegre.”

The company is also probably the most inclusive in Brazil, employing over 90 disabled people among its ranks and actively promotes awareness of diversity and inclusion on its campus, through lectures, workshops,

way to do farming (not only in Brazil, but worldwide).” This also makes careful planning for the future even more of a necessity. And according to Mr. Logemann, the firm has plenty of things on the horizon, telling us: “Our main focus is to continue expanding the operation (overall planted hectares) on the regions where we operate, both through the development of our land bank (which today stands at around 45 thousand hectares of undeveloped land) and also through new leasing contracts. We also view “certified production” as an important trend in the market.”

“Our main focus is to continue expanding the operation on the regions where we operate, both through the development of our land bank and also through new leasing contracts.” training teams, on-campus sign language professionals and in-house publications.

The initiatives have gained awards outside the company, as Mr. Logemann notes: “In 2016, the Company was elected by its employees one of the 10 Best Companies to Work For in Rio Grande do Sul (Great Place to Work) and received the Top Human Being Award from the Brazilian Human Resources Association in Rio Grande do Sul (ABRH-RS) for the internal communication case study “Our Way of Being.””

“Furthermore, we currently study the possibility of “adding value” to our products.

That opens up to several possibilities, ranging from entering the protein markets and the seed “multiplication” businesses.

These are all alternatives under study.

We also see strategic possibilities on the renewable energy scope, that is, on on-farm generation of energy (solar and/or wind, and also biomass).”

Plenty on the horizon for SLC Agricola

SLC AGRICOLA

Mr. Logemann tells us that “a major difference between SLC and the rest of the market is that we have a “corporate approach” do farming, in contrast with the usual “family estate” approach, which is by far the most common

 info@slcagricola.com.br @SLCAgricola www.slcagricola.com.br

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STRONG EMPHASIZE ON

SUSTAINABILITY Salmones Camanchaca The Chilean company Camanchaca was founded in 1965, taking its name from the distinctive cloud patterns that form over the coast where its fishing trawlers have operated until today.

WORDS BY

Michael Minihan

ď ľ RESEARCH BY

Maria Cobano

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Petrohue Hatchery

The Chilean company Camanchaca was founded in 1965, taking its name from the distinctive cloud patterns that form over the coast where its fishing trawlers have operated until today. In the beginning, the company was focused on selling shrimp and langostino lobster but soon expanded into other areas including salmon aquaculture.

Today, the company is one of the world’s largest fishing and aquaculture companies, with annual revenues near US$500 million and exporting to over 50 countries. Its

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operations stretch over 6,000 kilometers along the Chilean coast, and include fishing vessels, salmon, mussels and abalone farming sites, processing facilities and a significant distribution network. The Salmon Division represents its largest business, with revenues over US$350 million in 2016 Despite its scale, Salmones Camanchaca is very keen to emphasize its sustainable credentials. We recently spoke with Nancy CaĂąete (Human Resources Deputy Manager), Francisco Retamal (Chief of Certifications and

SALMONES CAMANCHACA

“The issue of sustainability is more important all the time from the perspective of our company, that of our clients and their customers�

Regulations) and Igal Neiman (Corporate Planning & Marketing Director) about these commitments to sustainability,

Implementing sustainability at sea One of the key impressions from our discussion with Salmones Camanchaca is a true belief in sustainability as a long term strategy to continue growing its business. As a clear example of that philosophy, the three executives were keen to provide feedback on the various programs the company is

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Faster to harvest Prime & Express are the next generation of feeds for post-transfer salmon. Skretting’s new grower diets enable a shorter production time in the sea, without compromising fish health or final quality.

inspired Your weekly digest of business news and views

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implementing - clearly, no resources are spared by the company in this area.

Mr. Igal Neiman told us: “Sustainability matters are more important all the time from the perspective of our company, our clients and their customers. In the last year, we published the third annual sustainability report and were ranked in the first place among all salmon producers in the Americas at the Sustainability Reporting and Transparency ranking carried out by Seafood Intelligence”, benchmark that includes the largest 35 salmon farmers and salmon feed producers in the world.

Salmones Camanchaca was the first salmon producing company in the world to achieve BAP three stars certification, and surpassed this achievement by obtaining four stars in its most recent evaluation. Elsewhere, the company also has obtained ASC sustainability certification, Global GAP and food safety standards, another accreditations to add to a growing list.

In fact, as Mr. Francisco Retamal points out, the company participates in a number of associations and standards, both to set and surpass benchmarks. One such is the Global

“Our company is a part of the Global Salmon Initiative, which is an association of the biggest salmon producers in the world, whose aim is to promote more sustainable salmon cultivation. We’re in regular contact with this body”

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Salmon Initiative (GSI), of which Mr. Neiman says: “Our Company is part of this initiative, which is an association of the largest salmon producers in the world, whose aim is to promote more sustainable salmon farming. Mr. Retamal explains that “we participate constantly at different taskforces at GSI in order to boost and accelerate our improvements in sustainability matters, making transparent the most relevant sustainability KPIs to the public” Sustainability in this area even extends to the feed used in the salmon farming as the company only buys feed from BAP certified suppliers. Ms Nancy Cañete explained to us:

“we are partaking in the open doors program aimed at complete transparency,” meaning that the company doesn’t just talk a good talk - it encourages everyone to visit, be they from the public or from official bodies.

In 2017 alone, over 3,200 visitors took up the offer and were able to see the operations at first hand and 2018 looks like building on this figure.

Implementing sustainability with stakeholders The commitment to sustainability doesn’t end in the company’s output, however. As

“One such initiative rolled out by the company is Camanchaca Amiga, which seeks to bring the company closer to the greater community”

Beach Cleaning Day

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Inside the Primary Processing Plant

a company with a high profile in a joint action with the local Did you know? communities were carried out, and in Chile, it seeks to raise the green spots for waste have been standards of living for both the installed in neighboring schools people working for the company To d a y , the in partnership with municipalities, and those outside, such as company is one of while maintaining constant Chilean schoolchildren. There are the world’s largest communication through dialogue a number of voluntary initiatives fish producers, tables with the communities in the in place here too. with annual different operations.

In this context, the company revenues in excess Additionally, aiming to within its strategic pillars has of $400 million improve employabilit y at defined the implementation of a and exporting to the local communities, open Corporate & Social Responsibility over 50 countries trainings in diverse matters Program, known as Camanchaca are offered in partnership with Amiga, which operates since the municipalities.

2012 across all divisions. This The suppliers are a strategic group for the program aims to strengthen the links with the company, this is how Camanchaca has looked communities where the Company operates. for different ways to improve their payment Each year and according to the diagnoses terms, which has a significant impacts for made in every area, a work plan is formalized for suppliers to the salmon farming industry. During each location, for example in 2017 a collaborative 2017, Camanchaca achieved the Pro-SME seal project was established to obtain Environmental (“Sello Pro-Pyme” in Spanish) reaffirming its Certification in three of its neighboring schools, commitment to these stakehorders. voluntary cleanings of the coastal border

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Rio Del Este Hatchery

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Regarding the recruitment and staff selection, the company privileges the hiring of workers from neighboring communities.

For Camanchaca, a fundamental pillar is its workers, so that each year performs the survey of Organizational Climate that is used as a basis for the annual planning of activities aimed at improving the quality of life and welbeing of its workers.

Sustainable now, sustainable in the future What Salmones Camanchaca has achieved until now can be viewed as the first step in a wider aim to bring sustainable aquaculture to a much larger audience. Mr. Neiman says: “The sustainability rankings will continue to be important to us; they challenge us to continue improving every year.”

There is also a milestone achieved on February 2nd, 2018: on this date, Salmones Camanchaca started to list its securities both on the Chilean and Norwegian Stock Exchanges in the form of depositary receipts.

This is the world’s largest seafood capital market, and this step represents a huge landmark in Salmones Camanchaca growth story. In addition, it is the first Latin American company to list on Oslo Stock Exchange.

This provides more resources to one of the world’s most sustainable fishing and aquaculture companies - which is good news for everyone. And with demand growing quickly in markets like the United States, Russia, China and Brazil, it’s easy to see how Camanchaca could soon literally be feeding the world from the ocean.

CAMANCHACA

 +562 2363 5700  info@camanchaca.cl @camanchaca_cl www.camanchaca.cl

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Mr Jorge Ibsen, interviewee

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WHERE SCIENCE NEVER STOPS ALMA Observatory It’s been nearly five years since we last spoke with the team at ALMA, so when the opportunity recently arose to find out how they were progressing, we were pleased to see that things had gone arguably even better than originally forecast back in 2013, at the time of its inauguration.

WORDS BY

Michael Minihan

 RESEARCH BY

Maria Cobano

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ome readers may recall that ALMA is an acronym used for the Atacama Large Millimeter/ submillimeter Array. It’s been nearly five years since we last spoke with the team at ALMA, so when the opportunity recently arose to find out how they were progressing, we were pleased to see that things had gone arguably even better than originally forecast back in 2013, at the time of its inauguration.

While over half of the firms we interview are of a technical nature, perhaps ALMA can lay claim to be the most technical of all. There aren’t many firms which we interview which can legitimately claim to be assisting scientists in studying the black hole that exists at the centre of our Milky Way, for example. Such is the level of technicality at ALMA. ALMA is able to do this through the use of up to 100 times better angular resolution than compared to other interferometers (in s tr u m e nt s wh ich su p e rim p ose electromagnetic waves to extract information of an astronomical objects). Its higher resolution and larger sensitivity speed, makes it a one-of-a-kind radio astronomical instrument enabling ‘transformational science.’

What’s clear is that the observatory is no longer initiating activities as when we first met, but now is a mainstay of the broader scientific community. An indication of this is that its members are now no longer

S

“ALMA is able to do this through the use of up to 100 times better angular resolution than compared to other interferometers”

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ALMA receives award for its contribution to the progress of Chile.

Award Ceremony ICARE 2017.

Credit: Icare

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focused on building the instrument, but instead focusing their efforts on streamlining the observatory production chain: project proposal preparation, project ranking, data acquisition, data processing and ultimately, and data delivery to an eager scientific community.

Scientific breakthroughs At the end of 2017, ALMA is not only starting the fifth observing cycle, where its team aims to deliver 4,000 hours of science time - a milestone which represents a significant increase in the number of hours offered to

the community, but already looking towards the capabilities of its next observation cycles which will be offering a number of new observation modes to scientists in the field.

The increase in hours reflects the productivity of ALMA – to date, around 800 scientific articles have been published, including 243 in 2017 alone – approximately 6 per week, an unprecedented number. In 2014, for example, ALMA revealed remarkable details of a solar system currently forming, with the individual planets vacuuming up dust and gas in a protoplanetary disc.

More recently, in 2017, two teams of

“At the end of 2017, ALMA is not only starting the fifth observing cycle, where its team aims to deliver 4,000 hours of science time”

Antenna relocation. Credit: Carlos Padilla – ALMA (ESO/NAOJ/NRAO)

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ALMA OBSERVATORY

AOS Technical Building. © ALMA (ESO/NAOJ/NRAO)

European astronomers were responsible for the first ever detection of a probiotic molecule – the complex organic molecule methyl isocyanate – which has been recognized as one of the most relevant discoveries of science in the past five years, described by authors of one study as “another piece of the puzzle in understanding how life came about on our planet.”

a resource not only to the organization but to the scientific community in Latin America. This More recently, in has led to increased cooperation 2017, two teams with universities both in Chile of European and neighbouring countries. astronomers It also has the added benefit were responsible of drawing in students and for the first ever researchers from diverse fields detection of a such as software, electronic and probiotic molecule mechanical engineering.

- described by This pays an ongoing dividend authors of one in intellectual capital. With more study as “another Ongoing work astronomical installations, the piece of the puzzle The team at ALMA is currently Chilean National Research and in understanding focusing on further developing Education Network (REUNA) how life came about a data-driven approach to is expected to significantly on our planet.” management to ensure that develop its network capacity decisions are taken in terms of for science and data centres for well-defined metrics, thresholds the storage and processing of and key performance indicators scientific data most likely will be (KPIs). This will ensure that the all aspects of developed over the coming years, which will at the operation represent a perfect balance almost certainly further catalyse what ALMA between results and operational stability. is doing and accelerate the development In addition, ALMA’s astronomical of data-science based digital business installations in Chile continue to provide in the region.

Did you know?

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Partnerships within the Scientific Community

Laboratories. © Carlos Padilla – ALMA (ESO/NAOJ/NRAO)

As our last article on ALMA highlighted, it is itself the result of a worldwide partnership between three separate organizations: The European Southern Observatory (Europe), the National Science Foundation (United States) and the National Institutes of Natural Sciences (Japan), all of which bring the work of ALMA to a larger audience, including other astronomical agencies.

Partnerships are also being established all the time by way of the Astronomical Data Analysis Software and Systems (ADASS) Conference series, of which ALMA is now a regular participant. Not only a forum for astronomers, computer scientists, software engineers, faculty members and students, but also a solid way in which to connect with this community and establish mutually-beneficial relationships.

At the 27th edition of the conference, held in Santiago de Chile in October 2017 and co-hosted by ESO, ALMA and a Chilean university, a record of 400 participants attended (beating the previous record of 320 by 25%), providing around 50 oral presentations. One of the supporters of this conference edition is the Chilean corporation in charge of promoting industrial production (CORFO), an agency from the country’s Ministry of the Economy.

One of the takeaways from this year’s event, was the important role that women

“By 2025, it is estimated that Chile will be hosting around 70% of the world’s astronomical observatory capacity”

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ALMA OBSERVATORY

Board of Directors outside the SCO Building in Santiago, March 14, 2014.

Credit:© ALMA (ESO/NAOJ/NRAO)

have to play in the future of science. The Chilean Minister for Gender Equality, Claudia Pascual Grau, headed up a meeting which addressed the topic (organized by ALMA and Associated Universities Inc), and pointed to the good example that ALMA was setting in this area, not just in Chile, but internationally.

Science Never Stops The field of science doesn’t know what ‘market saturation’ means, forcing scientific organizations like ALMA to keep researching, keep innovating and keep improving. ALMA has already put plans in place for 5-year and 30-year roadmaps for future major developments. The final details of both will be delivered in 2018. Both will ensure that the foremost radio observatory in the world maintains and builds upon its position.

By 2025, it is estimated that Chile will be hosting around 70% of the world’s astronomical observatory capacity. There’s no reason to fear this near monopoly. In Chile, the science community has found a country which is willing to put women at the forefront, educate children on the importance of science inside and outside their careers and to cooperate with foreign scientists. ALMA is the proof and a leading actor of all this.

ALMA OBSERVATORY

 +56 2 2467 6100  info@almaobservatory.org @almaobs www.almaobservatory.org

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Iberostar Clu

THE START OF A NEW DAWN

The volcanic island archipelago of Cape Verde is one and the only one located o WORDS BY

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Eurides Lopes ď ľ RE

ub Boa Vista

FOR CAPE VERDE TOURISM

of only five island nations on the continent of Africa, off Africa’s Atlantic coast.

ESEARCH BY

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he volcanic island archipelago of Cape Verde is one of only five island nations on the continent of Africa, and the only one located off Africa’s Atlantic coast. This gives it a strategic location on air and sea routes, which primes it for growth in the coming years. All indications are that tourism will be central to this growth.

Tourism in Cape Verde is one of Africa’s success stories over the past 20 years or so.

In 1996, tourism comprised less than 10% of the country’s GDP, barely making a mark

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on the country’s economic output. 20 years on in 2016, this figure had moved to 45% remarkable growth and an indicator that has made everyone sit up.

There are several reasons for this growth story, not least the development of international airports at Boa Vista in December 2007 and in Cape Verde in late 2009. Improvements at Porto Grande have also facilitated cruise liners. The final part of the jigsaw is tourism infrastructure, as exhibited by the Iberostar Club Boa Vista.

IBEROSTAR CLUB BOA VISTA

“As a 4 star Hotel boasting an outstanding location on Praia de Chaves, one of Cape Verde’s finest coastlines”

The Iberostar Club Boa Vista opened in January 2010, just two months after the inauguration of Boa Vista International Airport. As a 4 star Hotel boasting an outstanding location on Praia de Chaves, one of Cape Verde’s finest coastlines. Its arrival on the scene heralded an important step in the Cape Verde tourism growth story.

A 5-star culture in Cape Verde The arrival of the Iberostar Club Boa Vista was a landmark in Cape Verde’s tourism for several

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reasons. After just one year in operation, it achieved a 5-star rating. A country which a few years before barely registered tourism now had a world class tourism resort catering to international guests with customary West African hospitality.

There’s a huge knock-on effect on local industry as a result; the 200 people employed at the hotel resort at any one time are trained in the highest standards of hospitality; restaurants, shops and ancillary services have all opened nearby, bringing new life to an area which provided few opportunities to its young people just a few years before.

The cooperation between hotel management and local authorities is also stimulating development in tourism infrastructure in the locality. Tourism is one sector where the addition of competition can actually aid those already in the market, and more hotels in the area have the potential to be advantageous to Iberostar Club Boa Vista as well as the local economy.

Instilling CSR Employing locals isn’t enough for management at the Iberostar Club Boa Vista: the employees have to be well looked

“Happy, well-looked after employees are essential in the tourism sector. The notion that employees are treated as part of a large family at the resort is apparent as soon as anyone walks through the doors”

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IBEROSTAR CLUB BOA VISTA

Assistant Manager Tina Purger MaĂŽtre Emerson Delgado General Manager SĂŠrgio Preto Head Waitress Nataly Lima

after. Happy, well-looked after water heater devices and LED Did you know? light bulbs across its buildings. employees are essential in the Its management is constantly tourism sector. The notion that looking for means to lower its employees are treated as part Iberostar is energy output. of a large family at the resort d eve lo ping a is apparent as soon as anyone plan of unique Partners walks through the doors. installations that The Iberostar Boa Vista Resort There is also a comprehensive will separate it has counted on a number of training program which from the other partners since opening its doors, employees undergo which puts hotels on the Cape and even before. An essential them among the most highly Verdean market part of providing a 5-star trained in the region. Locals, service is being able to count on whose native language is 5-star suppliers. A small island Portuguese, are also exposed archipelago can create obvious logistics to language in Spanish, French and English challenges, so the resort needed partners that - creating opportunities for them in other it could depend on all year round. sectors and in turn, bringing Cape Verde to a Thankfully, it was able to find such a global audience. partner in Emicela, its most important food Elsewhere, the company does its utmost to and beverage provider. Emicela is a local firm respect the outstanding natural environment with experience in the European hospitality where it finds itself. It uses sophisticated industry so it didn’t need to be told about technology in-house which minimizes energy the importance of constant 5-star hospitality. usage, including state-of-the-art instant

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IBEROSTAR CLUB BOA VISTA

“thanks to Iberostar and the burgeoning tourism sector, Cape Verde is a country with great perspectives on the future”

Hotel management now recognizes its partnership as a major trigger for its success.

Also, the hotel owes an enormous debt of gratitude to the Boa Vista city hall, (the “Camâra Municipal da Boa Vista”). The hotel enjoys a strong relationship with the city hall, as both look to develop tourism in the area.

The city hall has often provided the ‘missing link’ in challenging situations for the hotel, constantly being on hand to help it deliver on its 5-star promise.

Conclusion: Good views... great perspectives The journey is just beginning for the Iberostar family. In the next five to ten years, it will oversee a complete renovation of its guest rooms, service points and common areas. It intends not only to maintain its 5-star rating, but to use it as a platform to keep growing.

Growth in Cape Verde’s tourism sector brings opportunities but also raises standards for the hotel to adhere to.

Elsewhere, Iberostar is developing a plan of unique installations that will separate it from the other hotels on the Cape Verdean market. An expansion is still being studied with the possibility of adding rooms, changing service points to new locations and opening a completely new hospitality venture with the same 5 star service for its clients.

In short, it’s truly an exciting time to be part

of the Iberostar family. Cape Verde is really just beginning its adventure into tourism at a time when people are more cognizant of the important of sustainability. This can already be seen in the planning being undertaken: the scattergun approach that occurred on some Mediterranean costs won’t happen here.

Boa Vista is the Portuguese for ‘good view,’ and anyone who has visited Cape Verde would testify that it almost seems to understate the beauty of the location of the Iberostar resort. More importantly, thanks to Iberostar and the burgeoning tourism sector, Cape Verde is a country with great perspectives on the future.

IBEROSTAR CLUB BOA VISTA

 0800 028 0422  info@iberostar.com @IBEROSTAR www.iberostar.com

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