BRAUS November 2015

www.businessreviewaustralia.com | November 2015

CHANGING THE GAME

BONUS

COMPANY OF THE MONTH

ERGON ENERGY

Regional Queensland’s energy supplier

A GLOBAL LEADERSHIP

The structure of companies across the world

EDITOR’S COMMENT

Just like on the rugby field, there are plenty of “game changers” in the corporate world.

When I think of game-changing companies, it always reminds me of my very favorite Ralph Waldo Emerson quote: “Do not go where the path may lead; go instead where there is no path and leave a trail.”

Game changers throughout history have been known for inspiring entrepreneurs to create products that revolutionise the way customers interact. It’s what drives people to find the next big thing.

In this month’s issue of Business Review Australia, we’ll take an in depth look at the world’s top 10 “game-changing” companies that have reshaped the way we consume and live our daily lives. Amazon graces our cover, but can you guess which others made the list?

And within every great company, there is an executive structure that puts it in position to succeed. This month’s leadership piece revolves around the corporate format of some of the largest companies around the globe, and examines if one particular system outshines the rest.

We’ll wrap up the November issue by delving into the concern with cloud computing, as well as our company of the month Ergon Energy, which supplies electricity to 97 per cent of Queensland.

Cheers!

ERIC HARDING Editor eric.harding@businessreviewaustralia.com

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CONTENTS FEATURES

18

6

TECHNOLOGY

LEADERSHIP

The cloud security concerns of senior IT executives

Executive tree

COMPANY PROFILES

32

Joy Global

46 58

UGL Limited

74

Ergon Energy

4

November 2015

Lynas Corporation

24

TOP 10

Game Changers

MINING

ENERGY

32 Joy Global

74 Ergon Energy

Australasia

114 Modex Energy

46 Lynas Corporation

CONSTRUCTION

114

Modex Energy

SUPPLY CHAIN

124 Shamrock Civil

58 UGL Limited

Engineering

FOOD 134 Dairy Technical Services

HEALTHCARE 144 Hutt Valley DHB

5

LEADERSHIP

THE EXE

HOW THE TOP COMPANIES AROUND T

W R I T T E N B Y: E R I C H A R D I N G , C U T T E R

CUTIVES

HE WORLD ARE SET UP FOR SUCCESS

R S LAG LE A N D R E B E C CA CASTR EJ O N

LEADERSHIP WITH THE EVER-CHANGING corporate landscape, it has become harder and harder over the years to keep track of who does what in the executive structure of a large company.

Which style of corporate governance is most successful?

Which method is most popular?

Should analysts and observers be more interested in news surrounding a company’s CFO or vice president?

With those questions in mind, here is a look at some of the world’s top companies and how its top-level management is set up.

Apple Just three days after its launch, U.S.-based Apple reported selling more than 13 million of its new iPhone 6s and iPhone 6s Plus, which is a new record.

In the process, the tech giant has become the first company to reach a market capitalisation of over US$700 billion, while its stock has soared from US$54 to US$126 since co-founder Steve Jobs passed away in 2011. Its market value is more than double that of either Exxon Mobil or Microsoft, and Apple’s revenue has tripled to over 8 November 2015

Hadrian / Shutterstock.com

US$150 billion since 2010.

Apple’s executive structure is basically a traditional hierarchy, but takes away some aspects of other organisational structures to meet both market and industry demands. The company’s set up gives the CEO and senior VPs the majority of control, while the lower levels of the system has little say in market demands and business needs.

TIM COOK- Apple CEO Marco Prati / Shutterstock.com

Apple CEO — Tim Cook The first openly gay CEO in the Fortune 500, Cook joined Apple from Compaq Computer in 1998. Coming from an operations background and spending several of his most influential years of his career at IBM. Some of Cook’s best moves have been creating a market in China, introducing Apple Pay, and the continued

successful adoption of Apple’s newest operating system, iOS 8.

But Cook isn’t what company executives like to call a “subjectmatter expert” on such critical areas as product development, design, and marketing. Because of this, he behaves much more like a coach who trusts his players compared to Jobs.

9

RBC’s CEO – David I. McKay

RBC The Royal Bank of Canada is all about helping its clients and communities build a better future. With more than 79,000 client-focused and committed employees, the company currently services 16 million clients worldwide.

Starting at the very top, the RBC has an independent chairman who leads a board that is composed 10

November 2015

RBC rmnoa357 / Shutterstock.com

of independent, well-informed directors. To differentiate from others in the industry, the RBC believes in having opening communication with its shareholders, as well as encourages these shareholders to express their views.

The Royal Bank of Canada gives top priority to strategic planning to help ensure that standards exist to promote

SMART BUILDINGS COMBINE TECHNOLOGY WITH HUMANS

ethical behavior throughout the entire organization. In addition to, the company continues to better itself by maintaining different ways to improve its governance practices, as well as adapt industry-leading standards.

Degree in Mathematics, McKay has been the CEO of the Royal Bank of Canada since 2014. He has experience in retail and business banking, group risk management and corporate banking.

RBC’s CEO — David I. McKay Having earned both a Master’s of Business Degree and a Bachelor’s

Grupo Carso Carlos Slim’s conglomerate in one of the most powerful business groups 11

LEADERSHIP

Grupo Carso

SUCCESSFUL SETUPS

worldwide. Also known as Grupo Sanborns SAB, it had a capital growth of more than US$12 billion, only in 2014.

The group incorporates four different industrial divisions that have more than 30 major players in mining, retail, construction and telecommunication services, such as Sears Mexico, Televisa, CompUSA, Walgreens, etc.

The conglomerate follows the essential 10 principles to maintain the human force of its many shares worldwide, including minimal hierarchies and internal training on management functions for every executive “Our premise is and has always been that we leave with nothing; we can only do things while we are alive and that entrepreneurs are creators of the wealth they temporarily manage,” said Slim as part of the Grupo Carso mission statement.

Sanborns, América Móvil and Teléfonos de México. An entrepreneur since first deciding to purchase shares in a Mexican bank at the age of 12, it’s no surprise that by age 76 his current worth is more than US$72 billion.

Slim’s most recent innovation within the talent management aspect includes an initiative called “Global three-day work” that basically specifies a new schedule among his companies worldwide. The upside is twice as much leisure time; the downside is longer days and workers carrying on into their 70s.

BHP Billiton Australia’s biggest and most successful global company, BHP Billiton is an enterprise that continues to be the nation’s biggest taxpayer, and is a storage of future wealth for just about every Australian with

Grupo Carso’s CEO — Carlos Slim He graduated in Business Administration from Universidad Anahuac, and aside from Grupo Carso, he is the COB of Grupo 13

LEADERSHIP a superannuation account and a retirement to pay for.

BHP’s top four executives under its CEO include a chief financial officer, chief legal counsel, a president of petroleum and potash as well as a chief information officer.

Dean Dalla Valle was named Chief Commercial Officer in June, and now is responsible for Potash after previously being president of health, safety, environment (HSE), as well as marketing and technology. This allows the president of petroleum Tim Cutt to focus solely on increasing the value of the company’s important petroleum business.

BHP Billiton CEO — Andrew Mackenzie

BHP Billiton CEO — Andrew Mackenzie

14

November 2015

Mackenzie has over 30 years of experience in oil and gas, petrochemicals and minerals. He joined BHP Billiton in 2008 as Chief Executive Non-Ferrous, and commenced as Chief Executive Officer in 2013. Prior to BHP Billiton, Mackenzie was Chief Executive of Diamonds and Minerals at rival Rio Tinto, and held a number of senior roles at BP, including vice president for Technology and Engineering, and vice president for Chemicals.

Tencent A Chinese investment holding company whose subsidiaries provide media, entertainment, internet and mobile services as well as operate online advertising services, Tencent is a US$139 billion company with nearly a billion users. It essentially functions like Facebook, Amazon, Twitter, and Uber combined into one.

Tencent continuously strives for excellence in today’s competitive world and hardly ever seems satisfied.

Its executive team is very dedicated with corporate social responsibilities and focuses on educating youth, setting up initiatives for providing care to impoverished and disadvantaged

F E AT U R E A R T I C L E S H O R T E N E D H E A D L I N E

SABIC sections of society and disaster relief.

The company also has a CIO, Daniel Xu, who oversees the strategic planning and development for the website properties and communities, customer relations and public relations of the Company.

Tencent CEO — Pony Ma (Ma Huateng) One of the core founders of Tencent, Ma oversees the strategic development, overall direction and management of the Group.

Before he co-founding Tencent in 1998, Pony was in charge of R&D for Internet paging system development at China Motion

Telecom Development Limited, which is a telecommunications services and products provider in China. He also has over 20 years of experience in telecommunication and Internet industries.

Sabic A global company with a large part of its business based in the Middle East, Sabic is the largest and most profitable non-oil company in the region, as well as one of the world’s largest petrochemical manufacturers.

The company’s four corporate departments include finance, human resources, corporate control and research and technology, which 15

LEADERSHIP

Yousef Al Benyan Vice Chairman and CEO-SABIC

equally assist with Sabic’s drive to consistently invest in technology and innovation.

Sabic’s CEO — Yousef Abdullah Al-Benyan Known for his marketing and leadership success, Al-Benyan has an Economics Degree and a Master’s Degree in Industrial Management.

Before becoming CEO of Sabic, he held a variety of senior positions within the company.

MTN Group As a leading emerging market mobile operator, MTN Group is at 16

November 2015

the forefront of the technological changes that continue to sweep the world. With a vision to lead the delivery of a bold, new digital world to its customers, the company has numerous operations throughout Africa.

Backed by a board of directors, executive committee and a good corporate governance structure, MTN Group leads its industry by enhancing and aligning its organization, policies and procedures to completely support its operating environment and strategy.

Furthermore, the company is all about promoting a team environment,

SUCCESSFUL SETUPS

with a clear division of responsibilities assigned to each group to ensure a balance of power and authority.

MTN Group’s CEO — RS Dabengwa With a Bachelor’s of Science in Engineering and a Master’s Degree in Business, Dabengwa has experience in sales, customer service, electrification and distribution technology. He began his career by working as a consulting electrical engineer in the building services industry and in the mining and railway sectors.

MTN Group’s CEO — RS Dabengwa

17

T ETCE H C NN OO L OL GO Ă? AG Y

The biggest c concerns for sen

Although cloud computing has adoption brings s

WRI T TEN BY: SA N 18

November 2015

INTELIGENCIAS EMPRESARIALES

cloud security nior IT executives

s delivered many benefits, cloud several challenges

NDR A L UZ PL ATA 19

TECHNOLOGY Hitachi Data Systems Corporation, a wholly owned subsidiary of Hitachi, Ltd. (TSE: 6501), recently announced results of an Economist Intelligence Unit (EIU) study, “Preparing for nextgeneration cloud: Lessons learned and insights shared,” which found that 87 per cent of the organizations surveyed indicated their senior management was concerned with security and privacy of corporate data for cloud implementations.

Responses also indicated that outages and failures of public cloud implementations were twice as likely to occur when compared to private cloud.

Almost half of the respondents indicated the biggest risk of a failed implementation to be loss of customer data.

Cloud computing continues to transform the entire IT industry. It has created new market opportunities, adjacent product or service opportunities and new lines of business for many organizations.

It has also given IT organizations, providers and integrators more agile, streamlined and cost-effective ways to deliver services to users and customers. While cloud computing has delivered many benefits, cloud adoption also continues to challenge 20

November 2015

even the most nimble of companies.

By gathering lessons learned from cloud implementations of 232 global IT executives, the 2015 Economist Intelligence Unit report identifies five best practices that can help organizations make the most of their cloud opportunities. These best practices can help drive greater business agility, improved data access and a more productive, mobilized workforce: • Ensure cloud providers can meet corporate business and IT requirements.

• Choose the right cloud service for

Cloud computing continues to transform the entire IT industry.

greater control over security and data protection.

• Use cloud architectures that enable connections from cloud services to existing IT infrastructure.

• Consider factors beyond costs, such as cloud’s potential to improve business operations and boost innovation and employee efficiency.

• Define business requirements for IT to offer cloud services and act as cloud brokers.

In alignment with these best practices, the Hitachi Content Platform (HCP), rated the No. 1 most secure object storage solution according to

Gartner in their Critical Capabilities report, delivers distinct advantages that can accelerate cloud adoption for organizations.

This family of products lets you build your own secure, scalable and easyto-manage cloud. It includes HCP, an object-based cloud storage platform; HCP Anywhere, an enterprise-class file sync and share solution; and Hitachi Data Ingestor (HDI), a cloud storage gateway.

These three solutions are tightly integrated, offering maximum data mobility so organizations can avoid being trapped by traditional 21

TECHNOLOGY

The 2015 Economist Intelligence Unit report identifies five best practices that can help organizations make the most of their cloud opportunities.

22

November 2015

CLOUD SECURITY CONCERNS FOR SENIOR IT EXECUTIVES

technology silos. Taking data mobility a step further, HCP provides a hybrid cloud architecture that enables organizations to move data to and between their choice of public clouds for the datasets and workloads they deem appropriate to move offsite.

The rich data management and hybrid capabilities of HCP provide IT with the tools to become internal brokers for their organizations’ cloud services, while maintaining full control and visibility to ensure that proper data security, sovereignty and compliance are upheld. This means IT organizations can provide secure data access for their users anywhere, anytime, on any device.

The industry-leading HCP portfolio for content mobility empowers workforces and maintains visibility and control with an agile hybrid cloud.

It is cloud neutral with no lock-in, and manages data globally for secure flexibility to stay ahead of cloud and mobility trends.

Poised for outstanding efficiency gains and new business innovations, the HCP portfolio promotes faster time to value, and adaptability to market changes. Organizations can meet compliancy demands with automated

data retention policies and proactive responses to storage capacity management much easier.

“One of the reasons we chose Hitachi Content Platform was for its integrated architecture that is ready for cloud,” said Giuseppe Alibrandi, chief technology officer at Banca Popolare di Milano in Italy. “It is extremely flexible and scalable, eliminates the need to run daily backup procedures, provides synchronization and file sharing, and ensures a high level of security, which are all key requirements for us.”

Finding a balanced approach between flexible workplace mobility and corporate control and visibility of the data is now possible.

About the Report “Preparing for next-generation cloud: Lessons learned and insights shared” is an Economist Intelligence Unit (EIU) research program, sponsored

by Hitachi Data Systems. The report surveyed 232 global IT executives in 2015 to explore companies’ experiences with cloud adoption.

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TOP 10

TOP 10 G A M E

What makes them so successful?

Written by: Cutter Slagle

C H

H A N G E R S

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TOP 10 Some companies stand out, not because they were the first to develop a product or launch a service, but because their products and services transform the lives of users. Take a look at some of the most innovative, well-known, and highly successful companies today. These are companies that have changed the world.

Facebook Started by a college student looking for an easy way to connect with his friends on campus, Facebook has become the social connectivity and marketing tool of the world. Mark Zuckerberg began his quest to link people while an undergrad at Harvard. Transformed into a simple, free social media site in 2004, the company has grown to include one billion daily users. Zuckerberg is using it as a stepping-stone to improve education and connect people worldwide by establishing universal access to the Internet. The company’s success stems from the need to connect in a digital 26 November 2015

world, the ease of use of its software, and its free access to make this $245 billion company more than just a simple social network.

Netflix Netflix evolved from a rent-bymail program for movies on disc to a powerhouse of programs and content. Once the company launched its low-cost app-style streaming service, the platform allowed viewers to choose when and where they caught their favorite shows — even on smartphones and tablet computers.

With 65 million members spread over 50 countries, Netflix has viewers watching more than 100 million hours of TV shows and movies on demand each day. As the world’s leading TV “network,” Netflix now dominates the industry

TOP 10 GAME CHANGERS

and has even launched its own original shows such as “Sense8” and “Orange is the New Black” to increase viewer loyalty.

Amazon Amazon sold its first book about 20 years ago. Since that time, the Internet retail company has revolutionized not only its business model, but also the way people shop.

The company, worth an estimated $175.1 billion, allows consumers to buy just about anything they desire right from home. Amazon also extends its reach by engaging with customers who include consumers, sellers, enterprises, and content creators.

The company handles the promotions and marketing, as well as the distribution of many products, including the launch of Prime Now, a one-hour delivery service in select cities.

Never before has a company created an everything-in-oneplace retail outlet on such a scale. Amazon allows consum-

ers to have better control over what they buy, how much they pay, and where they shop — right at home.

IKEA IKEA, founded in 1943, operates 360 stores in 47 countries and continues to grow. What makes IKEA so successful, enough to sell $36 billion worth of product each year, is its ability to stream-

27

TOP 10 line purchasing decisions of the average furniture consumer. IKEA took the frustration out of furniture buying by targeting young people with their high-quality, durable products that were still affordable enough to sell and replace within a few years. The company also developed a name for itself by paying its workers fairly and being far more transparent than other companies in the industry. In short, people knew they were getting a good value at IKEA. Now, the average IKEA store is more of a destination than just another department store, where consumers go to immerse themselves in the specific culture the company offers.

Nike Nike is more than a fitness apparel and accessory company. Founded in 1964, the company designs and develops, markets, and sells products ranging from footwear to equipment and even offers some services to professional organizations. This $86.2 billion company took off when it named Michael Jordan as a paid sponsor, 28 November 2015

along with the Nike Jordon line of products. Nike set out to create products that would improve the performance of the world’s most noticeable athletes. They were aggressive from the start and provided high-quality products, linked with key endorsements, and developed a consistent brand identity. Nearly anyone — regardless of their native language — can recognize iconic swoosh mark on products, a priceless commodity in today’s saturated retail market.

Tesla Sustainability is a global trend, and finding ways to use the Earth’s resources in a more environmentally friendly way is growing in importance. Enter Tesla, a company with vocal Elon Musk at its helm. Worth about $25.5 billion,

TOP 10 GAME CHANGERS

the company designs, manufacturers and sells fully electric cars as well as other electric systems. Its name is immediately associated with the first electric car back in 2008, while its lithium-ion battery packs are spreading further than the automotive industry. Tesla is the first to offer this cutting-edge technology, but the company’s success also comes from its forwardthinking viewpoint. The American manufacturer continues to sponsor programs to improve electric energy technology and beyond.

Twitter

What can you say in just 140 characters? A great deal when you look at the success of Twitter, a social media site developed to let people express themselves briefly to friends and followers around the world.

What makes Twitter so valuable is that the company allows anyone, from world leaders to teens, to communicate news, updates, opinions, and thoughts immediately. Using hashtags, it’s easy to find people who share a common thought or topic. This innovative company has 316 million active users, sends 500 29

TOP 10 million Tweets each day, and has been valued as high as $30 billion. Twitter opened the door for instant communication and information sharing, but sets itself apart by not requiring users to “friend� each other.

M-Pesa Located in Kenya and Tanzania, M-Pesa made strategic moves as a small company to make it big.

A mobile-phone based money transfer company launched in 2007, M-Pesa also offers microfinancing as a way to differentiate itself.

Users deposit money into their account, which is stored on their mobile phone. They then use a

30 November 2015

PIN number to text messages to other users to make real-money transactions without having cash in hand. With more than 17 million accounts just in Kenya, this financial tool has helped provide important funding and monetary access to people in numerous developing countries. Because it offers a safe method of moving money, it’s helped to support growing economies and reduce crime.

Kickstarter Founded in 2009, Kickstarter caught on nearly as quickly as some of the most successful fund-raising campaigns its

TOP 10 GAME CHANGERS

hosted. The company allows everyday people to get fast and secure funding for their ideas and projects from investors around the world. These projects span a wide range of industries, and include items like smart watches, educational initiatives and scientific innovations. With more than 257,000 projects launched through the platform, and more than $2 billion worth of pledges, Kickstarter has helped individuals compete against large companies and development firms, incubating innovation at a micro-level and re-imagining the American dream on a global scale.

and processing of foods. Its modern drip irrigation system has transformed the lives of some three million farmers around the world by creating a shift from traditional methods to scientific and sustainable agriculture. With its products, farmers can produce more food with fewer resources.

This increases contract farming and production, and it continues to help developing regions to source sustainable food.

Jain Irrigation Systems Jain Irrigation Systems is based in India, but its agriculture methods span the world. What makes this company so unique is that it creates micro-irrigation systems for drip and sprinkler systems using photovoltaic systems. Its systems allow for solar water heating, bio-fertilizer use, greenhouse development,

Zuckerberg – Photo Cred Frederic Legrand - COMEO

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Joy Global Australasia

Rising to the challenge: Joy Global looks to diversify into new commodities Safety, reliability and efficiency continue to be the hallmark of Joy Global, as shown through the company’s Australasian division.

Written by: Robert Spence Produced by: Glen White

o

33

JOY GLOBAL AUSTRALASIA

J

oy Global has established a fierce reputation for meeting the rigorous demands of the mining industry by providing innovative and reliable equipment, systems and direct services.

Founded in 1884, the equipment maker specializes in developing and manufacturing systems, equipment, parts, and services for underground and surface mining. Joy Global has become a worldwide leader in highproductivity mining solutions by helping miners optimize their costper-ton of ore produced. Through the integration of smart technology, Joy Global is now on the forefront 34

November 2015

of helping companies optimize the performance of an entire mining operation.

World class provider In the wake of the declining commodity cycle, the equipment maker has begun expanding its capabilities into new markets to not only serve other sectors, but also become less exposed to mining downturns. Moving forward, a top priority for Joy Global is to diversify.

“By diversifying, we can become less exposed to the effects of a commodity downturn like we’ve seen in the past,” said Jason

MINING

Savage, President of Joy Global Australasia, a significant link in the company’s global supply chain.

“What we’re seeking as a business is to diversify into more commodities and become less of a coal equipment provider. Our end goal is to serve all commodities through our world class equipment and services.”

Joy Global has recently emerged into the hard rock market with a slew of acquisitions. Last year, the company acquired the underground hard rock mining assets of Mining Technologies International Inc. (MTI), helping to established itself as a

key component in many hard rock mining operations worldwide.

Joy recently made a move to further bolster its position as a first tier supplier to the underground hard rock mining market, acquiring France-based Montabert S.A.S. Globally known for rock drill products and rock breakers, the Montabert acquisition gives Joy access to the company’s global distribution of rock drill products and rock breakers.

“They have historically sold their products through dealers in a broad range of markets,” said Savage. “We absolutely intend on leveraging their w w w. j o y g l o b a l . c o m

35

® Timken is a registered trademark of The Timken Company. | © 2015 The Timken Company | Printed in U.S.A.

Stronger. Commitment. When it’s man and machine vs. mountain, you already know the outcome. Mistakes? Not an option. Equipment failure? Not on your watch.

After all, it’s your mountain to move.

The Timken team applies their know-how to improve the reliability and performance of machinery in diverse markets worldwide. The company designs, makes and markets high-performance mechanical components, including bearings, gears, chain and related mechanical power transmission products and services.

www.timken.com

JOY GLOBAL AUSTRALASIA

MINING

distribution while providing our muscle from a service and support aspect.”

As the company begins its journey into new markets, Joy is gearing up to launch an array of “game changing” equipment to the sector.

“We’re preparing to launch the world’s first hard rock driver in HD, as well as proven electric drive technology in conjunction with an energy storage system,” said Savage. The energy storage system will have the capability to store energy while the machine is operating, as well as idling. According to Savage, companies will be able to reduce their diesel consumption by 20 per cent, while releasing more energy into the drive train to drive faster cycle times.

“Although we’ve designed these machines to reduce operating cost, with energy system storing

SUPPLIER PROFILE

THE TIMKEN COMPANY

The Timken Company (NYSE: TKR; www.timken.com) engineers, manufactures and markets bearings, transmissions, gearboxes, chain and related products, and offers a spectrum of powertrain rebuild and repair services. The leading authority on tapered roller bearings, Timken today applies its deep knowledge of metallurgy, tribology and mechanical power transmission across a variety of bearings and related systems to improve reliability and efficiency of machinery and equipment all around the world.

In a business where daily production is measured in thousands of tons, mine equipment manufacturers and the companies that operate and maintain mining equipment rely on Timken to keep their equipment on the job and deliver maximum performance. From longwall shearers and shaker screens to massive draglines and shovels, Timken delivers solutions for mining applications, large and small, throughout the world. With 14,000 employees operating from 28 countries, Timken makes the world more productive and keeps industry in motion. www. www.timken.com w w w. j o y g l o b a l . c o m

37

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JOY GLOBAL AUSTRALASIA energy, companies can actually improve their performance while saving money,” Savage said.

Customer-driven solutions For Joy Global, satisfying the demands of its customers is as equally as important as delivering superior equipment. The company remains steadfast on leveraging its knowledge of applications to better assist companies in achieving their desired results, and boasts one of the world’s largest direct service networks.

“We have a proficient global network of highly trained service

SUPPLIER PROFILE

MINING

personnel,” said Savage. “Our services have a direct connect to the support personnel such as design and engineering to suit the customers’ needs, as well as the workforce, to locally customize our products to solve specific regional problems.”

Joy Global continues to push the envelope with new technologies for the mining industry. The introduction of JoySmart Solutions combines the company’s direct service model with something the mining industry has notoriously shied away from — technology. The automation and analytics that make up JoySmart

SKF AUSTRALIA PTY LTD

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SKF’s global footprint provides SKF customers with uniform quality standards and worldwide product availability. Our local presence provides direct access to the experience, knowledge and ingenuity of SKF people.

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JOY GLOBAL AUSTRALASIA Solutions are taking Joy’s customers to new levels of performance by maximizing production, lowering costs and helping keep people from harm’s way.

“We’re utilizing this information to enhance performance, as well as linking to automation and predictive maintenance,” said Savage.

Partnering with IBM, Smart Services allows Joy Global to analyze and compare operating data from its worldwide fleet, helping to identify anomalies in machine performance and continuous improvements in products. The end result is a combination of

MINING

improved availability, utilization and productivity, while also reducing operating costs.

According to Savage, the analytics produced allow Joy to better partner with its customers to provide direction and anticipate service needs, as well as optimize machine productivity to drive results and improve overall mine performance.

“We’re developing algorithms that can look at operational data measurements off the machine and detect trends and predict potential.

The smart connected products include predictive technologies aimed at taking people out of harm’s

w w w. j o y g l o b a l . c o m

41

JOY GLOBAL AUSTRALASIA way through the use of automation.”

Using data-driven intelligence, and the Internet of Things (loT) — a powerful new concept that will revolutionize the way the world works — Joy Global has established a key differentiator between itself and its competitors. Joy’s Smart Services aims to optimize mine performance by prioritizing maintenance, increasing utilization and reducing downtime for the equipment most critical to a mine’s operation.

Maintaining Joy’s message Comprised of Australia, Thailand, Indonesia and New Zealand, Joy

MINING

Global Australasia employs more than 1,200 staff and continues to be a dominant and reliable asset for the Pacific region mining sector.

“We’re thankful to say we have a lot of deep seated, long serving employees here at Joy Global Australasia. They have a deep passion for innovation and products and they pride themselves on what they supply,” said Savage.

As the hallmark of Joy Global, innovation continues to be a living, breathing entity in Australasia.

According to Savage, that mentality is collectively driven throughout the organization, encouraging people to

w w w. j o y g l o b a l . c o m

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JOY GLOBAL AUSTRALASIA

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November 2015

MINING

push the boundaries of technology.

“We see ourselves as a technology and service company. As a culture, we are innovators and we’re driven by new products and solutions,” said Savage. “It comes right from the top here at Joy Global and we maintain that common message here in Australasia.”

Investing in employees is an aspect of Joy Global Australasia’s success. Along with common training programs, the company trains staff in various programs such as leadership skills, operational excellence, lean methodology in manufacturing and other sources in the business.

“We don’t just talk to the talk,” said Savage.

“We talk about having smart people and we actively strive to provide the necessary training and resources to ensure employees are top notch. We’re not a ‘hire and fire’ type of business.

We have immense pride in what we do and our employees reflect that passion.”

Joy Global Australasia is also an active participant in giving back to its surrounding communities. According to Savage, the company is involved in various programs such as cancer and mental health research, and readily contributes through donations and community involvement.

“We try to be unbiased with our community involvement. Joy is an active contributor in communities around the world and we maintain that message here in Australasia,” Savage concluded.

Company Information INDUSTRY

Mining FOUNDED

1884 PRODUCTS/ SERVICES

Mining equipment

w w w. j o y g l o b a l . c o m

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Lynas Corporation The Comeback Kid

As an integrated source of rare earths from mine to customer, Lynas has experienced highs, lows and everything in between. With a new CEO at the helm, the company is now positioned for long-term success.

Written by: Robert Spence

Produced by: Jeffrey Bailey

47

C O M PA N Y N A M E

Bagging plant at Mt Weld

F

or Lynas Corporation, rare earth elements continue to create huge opportunity, and challenge.

The Australian-based company is putting the finishing touches on a considerable corporate turnaround, traveling a tough road of repositioning itself as a major player in the rare earths market, which has been historically dominated by China.

Driving the turnaround is Amanda Lacaze, appointed CEO in June 2014 . With Lacaze at the helm, 48 November 2015

Lynas is poised for a breakout year.

Back story Originally formed in 1983, Lynas has gone through a whirlwind of changes in recent years. The company undertook its first mining campaign in 2008, developing the Mount Weld mine in Western Australia, one of the largest and highest-grade known deposits of rare earths in the world. “In 2010, rare earths looked like a runaway market with the price spiking at more than six times

SECTOR

the current prices,” said Lacaze.

“Lynas raised significant funding and accelerated construction of the LAMP facility in Malaysia seeking to take advantage of this boom.”

According to Lacaze, when the rare earths bubble burst in late 2011, the company’s corporate structure and style of operations weren’t adjusted to the new market settings. In addition, ramp up of production at the LAMP facility was delayed by both operating challenges and legal challenges.

The result by the middle of last

year was a business that had consumed a huge amount of debt and equity funding in developing both the mine and the larges processing plant, but was yet to show a return on that investment.

“When I joined, production was unstable. We had high costs and were very cash consumptive. We had to reset our cost base and improve our operating performance while dealing with a market that was significantly less profitable than before.” w w w. l y n a s c o r p . c o m

49

LY N A S C O R P O R AT I O N

MINING GLOBAL

Rebirth of Lynas Appointed CEO in June 2014, Lacaze’s first plan of action was to establish a strategic framework to put its financial house in order.

“When I first started, Lynas had corporate offices in Sydney, KL and Perth as well as the facilities in Mt Weld and Kuantan. We decided it was best to ensure our people were co-located at our production facilities with a small number in Perth. This improved teaming and business efficiency and also deliver lower costs,” said Lacaze. “Shutting down some of the offices proved significant savings for us.”

Another critical component in the turnaround was reducing the company’s headcount.

According to Lacaze, the unpopular move can actually spark improvement.

SUPPLIER PROFILE

Amanda Lacaze, CEO and Managing Director

SIBELCO GROUP

Founded in 1872, the Sibelco Group has grown into a multinational business with more than 245 mining and production facilities worldwide. In 2012, Sibelco acquired QMAG Limited, one of the world’s most trusted producers of high grade Caustic Calcined Magnesia (CCM).

Sibelco has partnered with Lynas from early 2014 to provide our Caustic Calcined Magnesia (CCM) and is helping Lynas effectively stabilise their production process and maximise RE recoveries. At Sibelco we pride ourselves on our capabilities in operations management, process engineering and research and development. We have a team of highly qualified and experienced technical experts in the hydrometallurgical industry, who work closely with Lynas staff to improve process efficiency and increase the value in use of our magnesia.

Sibelco has a global portfolio of customers and our magnesia products are sold and delivered to over 30 countries worldwide. We provide tailored logistics solutions through our global network of service providers and the global Sibelco presence. Through our QMAG product range, Sibelco Australia is well positioned to deliver further growth and support our magnesia customers long into the future.

Website: www.sibelco.com.au w w w. l y n a s c o r p . c o m

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LY N A S C O R P O R AT I O N

A shift supervisor turns on pumps at LAMP 52 November 2015

MINING GLOBAL

VP of Production Kam Leung stands next to concentrate ready for shipment to Malaysia

“My experience is there are many times when reducing your headcount improves your results.

When you start, people find it counterintuitive; however, when you have many people working together and they’re not fully utilized, they become accustomed to not doing their best work every day. It’s also not at all satisfying for staff to feel they don’t have productive work to do,” Lacaze said.

“We worked really hard to create a culture of performance. Quality of action is something we focus on and I’m a big believer that there is no substitute for hard work.”

With the framework for a concentrated workforce in place, production is now profitable and sales revenues continue to grow.

“As CEO, one of the most important aspects of my job is getting everyone in the Lynas team to do the best job possible,” Lacaze said.

As a sign of the good times to come, Lynas recently announced a restructure and debt agreement with its 2 lenders. The deal, according to Lacaze, is a natural next step for the company.

“We’ve come a long way: We’ve fixed production issues, we’ve improved engagement with our w w w. l y n a s c o r p . c o m

53

Industry: FM Global - International Freight Forwarder and Licensed Customs Brokers with offices in Australia, Malaysia and throughout South East Asia and Indian Subcontinent, offer a diverse range of personalised, reliable and competitive services tailored to our customers’ needs.

Services: FM Global specialises in oil/gas and mining related shipments. We understand the remoteness associated with the mining industry, tailoring a logistics package suitable to our client’s requirements.

Ongoing Projects: FM Global in Australia and Malaysia are providing a full range of logistics services door-to-door for the Lynas/LAMP facilities to accommodate the movement of all cargo.

Allow us to exceed your expectations

Perth | Sydney | Melbourne | Brisbane | Adelaide Main Office: 1 Hines Road, O'Connor WA 6163 www.fmgloballogistics.com.au

Tel: +61 8 9314 2004 Fax +61 8 9314 6004 Email: sales@fmgloballogistics.com.au

LY N A S C O R P O R AT I O N

MINING GLOBAL

customers, and now this new debt restructure puts us in a position to complete the turnaround.”

Driving the change For Lacaze and her team, diversity is a large contributing factor to drive positive change.

“My executive team comprises three women and 6 men. We have Australians, Malaysians and others from various European countries.

It’s a good combination with varying backgrounds,” said Lacaze. “I want diversity in our company whether it’s gender, experience, age, ethnicity. It is my experience that

SUPPLIER PROFILE

varied experience leads to richer discussions on issues and new and different ways to address business challenges.”

As surprising as it sounds, Lacaze had no prior experience in the mining industry, having spent the majority of her career focused on marketing.

“Over the past 15 years, I have primarily worked in the IT&T industry.

When I took this job many people in the industry wondered how I would run a rare earths business.

My approach is that I knew how to manage performance, and I knew how to run a profitable business. I

FM GLOBAL LOGISTICS PTY LTD

Employees: 13 Established: 1st August, 2005 Management: • Brad O’Donnell – Managing Director • Mike Fairnie – Business Development Manager • Tania Stamboulakis – Project Manager Website: www.fmgloballogistics.com.au

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55

Excellence in design and project delivery.

Your partner in operational support.

www.hatch.com.au

Hatch is focused on working with clients to assess, plan and build for name plate production their most strategic investments. We bring together in-house engineering, smart technologies, quality project and construction management, operational support experience for small, medium and complex projects around the world.

Hatch is proud to be supporting Lynas Corporation’s Mt Weld Plant and their ramp up to being the world leader in rare earths production.

A shift supervisor instructs a tunnel furnace worker

56 November 2015

MINING GLOBAL

did need to learn about rare earths – and I made it my business to learn as much as I could from the experts in our company and at our business partners as quickly as possible,” said Lacaze.

Company Information INDUSTRY

Setting the tone For Lacaze, the job of the CEO is to cultivate the energy and spirit of the organization.

“I update all my staff every quarter on all important aspects of business performance. I do this in small groups so we can talk in detail and I can be sure that everyone knows what’s going on with the business and we build trust in each other.

People in this organization are working harder than they’ve ever done in their lives and I want them to be successful,” said Lacaze.

“The result is we bring the sum total of our experience from all those areas and therefore we’re able to have rich conversation.”

Lacaze remains very positive about the future for rare earths and for Lynas.

“Rare earth minerals are used extensively in growing markets including environmentally significant segments such as energy efficient cars and the new technology in wind turbines,” said Lacaze. “ Lynas offers users environmental assurance from mine to finished product and this will become increasingly important as the market grows.”

With the right pieces in place, Lynas Corporation is now poised to become a fully-integrated provider of rare earths for the long-term.

Mining Global HEADQUARTERS

Level 1, 7 Tully Road East Perth Western Australia Australia, 6004 FOUNDED

1983 EMPLOYEES

650

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57

UGL Adapting its

supply chain

The diversified services firm, which specialises in the delivery of critical assets within Australia, has been in the process of switching its supply chain methodology for the benefit of its end users.

Written by: Sam Jermy

Produced by: Vince Kielty 59

UGL

UGL’s ultimate objective is a dynamic supply chain that is responsive to its customers.

U

GL Limited has been on a journey to fundamentally change its operations, in order to get ahead of the industry curve and continue to see the $2.3 billion business grow.

The company, which trades on the Australian Securities Exchange, is a leading provider of end-to-end outsourced engineering, asset management and maintenance services with a diversified endmarket exposure across the core sectors of Rail, technology systems, power, resources, water and defence.

With over 8,000 employees 60

November 2015

(including subcontractors) across Australia and South East Asia, the company partners with some of the world’s largest blue-chip companies, government agencies, and private enterprise/public institutions.

It is not an easy task to revise the supply chain strategy of any company, as it is intrinsically linked to daily operations. Dean Newman, Head of Supply Chain for Rail Freight at UGL, explained the Rail Freight business’ journey in detail. He said: “Our underlying fundamental principle is the maintenance and construction of assets; that’s the

S U P P LY C H A I N

UGL’s Rail division falls under the Rail, Defence and International (RDI) umbrella.

same regardless of sector. With regard to Rail, the building of assets has changed; there’s not the mining boom that there once was and the construction of heavy rolling stock has declined as a result.”

“Importantly, UGL currently remains the only builder of locomotives in Australia. In the build space, we are General Electric’s representative in-country. We build locomotives either as a coOEM (Original Equipment Manufacturer) product or as a GE product under licence supervision. We have a co-OEM product that we build with them; the C-44 locomotive. As the landscape changed, where we were a large prolific builder of locos and wagons, now there is far greater emphasis on the maintenance of assets.”

“Importantly, UGL Rail currently remains the only builder of locomotives in Australia. In the build space, we are General Electric’s representative incountry.”

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Delivering solutions.

You serve the world’s markets.

So do we.

Your top priority is that your cargo reaches its destination – not how it gets there. With our global network, we perfectly combine rail, road, ocean, and air freight to ensure that your goods make it anywhere in the world. Safely, reliably, and right on schedule. And we do it quickly, efficiently, and affordably. From simple transport services to complex logistics processes, we have tailormade solutions to fulfill your needs.

Let us serve you.

For inquiries please contact:

Schenker Australia Pty Ltd 72-80 Bourke Road Alexandria (Sydney) NSW 2015 Australia

Phone: +61 2 9333 0333 Fax: +61 2 9333 0496 Email: info.au@dbschenker.com www.dbschenker.com

UGL

S U P P LY C H A I N

Strategic shift As such, the supply chain that underpins the Rail freight business has had to shift radically. The primary shift has been moving away from an inventory push methodology associated with materials pushed into the supply chain, to support the build of locos and wagons: UGL now has to be far more dynamic, adaptive and aligned to what the customers expect from the firm.

Newman said: “We hold a unique position now. Most of the locomotive manufacturers exited in the last 12 to 18 months because of the low demand. So

in today’s world we’re adopting an inventory pull methodology.

Over the last 12 months UGL has been driving the implementation of a really robust sales and operations planning (S&OP) process, where we endeavour to get marketing information from customers (internal/external), look at historical consumption and insert a predictable variability factor, because in the maintenance business you’re always going to have emerging type work. It’s all about trying to build the right forecast model.”

“Our ultimate objective is a

SUPPLIER PROFILE THE INTEGRATED LOGISTICS GROUP

DB Schenker stands for performance, service and safety, regardless of the complexity or extent of logistics tasks and requirements. We are well equipped for any and all challenges thanks to our robust business model. Merging international markets and increasing flows of goods are challenges we face every day, and at the same time are what drives our business.

Schenker Australia Pty Ltd was established in 1962 in Sydney and provides a complete range of international air and sea freight forwarding together with integrated logistics services from its premises in Sydney, Melbourne, Adelaide, Brisbane, Perth and a subsidiary office in Auckland, New Zealand.

With more than 1,100 employees and over 240,000sqm of storage capacity, DB Schenker in Australia and New Zealand is well-positioned to handle unique requirements of any industry. Our certifications and recognitions emphasize our commitment to provide quality service to its customers and continual improvement and its commitment to environmental responsibility.

Website: www.dbschenker.com w w w. u g l l i m i t e d . c o m

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C&J SHEETMETAL FABRICATIONS

One-Stop Shop Approach C & J Sheetmetal Fabrications started in 1990 and over the past 25 years our Company has grown due to providing Excellent Customer Service, Quality Products and On Time Delivery.

We service the Rail, Mining, Defence, Industrial and Engineering sectors in Australia. We currently have an Australia wide client base, which generates repeat business.

Quality Management System – ISO 9001:2008

WE ARE SPECIALISTS IN:

• Laser and Water Jet Cutting • CNC Pressing, Punching & Folding • Stainless Steel, Aluminium and Mild Steel Fabrication, by Certified Welders • CNC Machining / CNC Milling • Sandblasting • Spray Painting to Automotive Quality

Ph: +61 2 4904 0000 Fax: +61 2 4947 1166 Email: sales@candjsheetmetal.com.au

1 Waterloo Street Bennetts Green NSW 2290 www.candjsheetmetal.com.au

UGL

S U P P LY C H A I N

dynamic supply chain that is responsive to our customers. But more importantly it will become a fundamental enabler for the reduction of inventory held within the business and will improve the ROCE (return on capital employed), making sure inventory is not on shelves being lazy; it is actually working for us.”

“Two years ago we were very much in the build space and now that shift has seen the supply chain change to the maintenance of assets instead. Historically we had a business referred to as the National Freight Parts Sales, which had rendered supply chain capability.”

UGL has now implemented a more robust supply chain focusing on operational efficiency, core competency, and total quality management across its Rail division. Inventory management

SUPPLIER PROFILE

Dean Newman - Head of Supply Chain for Rail Freight at UGL

C&J SHEETMETAL FABRICATIONS

Established in 1990 C & J Sheetmetal Fabrications enjoys a reputation as one of most respected names in our field. We are a family owned Company that has been running for over 25years.

Our vast industry knowledge, highly experienced tradesmen and state of the art equipment allows us to offer our customers options not normally available from one location.

We carry a wide range of sheet and plate in stock and can respond to your urgent requirements.

C&J Sheetmetal are committed to offering a quality product and better service at very competitive prices. We conform to a Quality Management System ISO 9001:2008.

Website: www.candjsheetmetal.com.au w w w. u g l l i m i t e d . c o m

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UGL is a leading provider of end-to-end outsourced engineering, asset management and maintenance services

UGL

S U P P LY C H A I N

has also improved, with sales and operational planning helping to move from the push to pull methodology in response to changing market needs.

Implementation in Australia The Australian engineering and Rail sectors spent a lot of time where a push supply chain strategy was the best option according to Newman, because it was simply more important to keep customers’ rolling stock moving in industries such as mining. Compared with the FMCG (fast moving consumer goods) world, which has a far more mature advancement of pull strategies, mining and Rail have been slower on the uptake.

Newman suggests the Rail industry in Australia is now also awakening to this pull methodology though. He said: “It’s been a tough road at times because it has been a paradigm shift from the way in which the business operates, and the entire mindset has to change. We’re moving from buying ‘just in case’ and trying to push that to a market where we move to a strategy that says ‘no, let’s understand what we will need and when we

Dean Newman

“The outlook is positive in that we’ll continue to diversify and serve our customers with exceptional service, and as we migrate from a push to pull inventory strategy it will help us to help them.” w w w. u g l l i m i t e d . c o m

67

End-to-End Mobile Communication Solutions base2 is an original equipment manufacturer (OEM) of communications and control room hardware and software. From product inception, electronic design, mechanical design, testing, rmware and software, through to production, all engineering and manufacturing services are performed in-house.

• The base2 ICE, In-Cab Communications Equipment is a modular communications device speciically designed for the rail industry.

• The base2 VCS is a control room system for integrating voice and data communications systems into a touchscreen operator console.

• The base2 National Train Communications System (NTCS) is used for all train control communications on the Australian Deened Interstate Rail network and selected regional areas.

28 Pritchard Road, Virginia, Queensland 4014, Australia Ph: +61 7 3637 5444 | Fax: +61 7 3637 5445 | Email: admin@base2.com.au

www.base2.com.au

UGL will need it.”’

“Implementation of pull methodology on inventory stocking is a key focus for the supply chain function, as has been the ‘rights’ of the customer, be that internal or external. An internal customer is where we are facilitating movement of materials for one of our maintenance or build facilities that maintain or build locomotives all over Australia. Externally, some customers maintain their own assets, so they would procure their own materials from us to facilitate their asset management.”

At the same time, UGL has been

SUPPLIER PROFILE

S U P P LY C H A I N

incredibly focused to ensure this operational shift does not result in a decline in its customer service offering. This has been an absolute deliverable for the firm as it has transformed the supply chain over the last year. “Competition is no longer between companies, it’s between supply chains.” added Newman. “It is difficult to compete on price, brand loyalty is diminishing, there are lowcost economies all over the world; but a supply chain that delivers the right product, in the right place at the right time, and for the right customer in the right quantity and quality … well, you can’t beat that.”

BASE2

Established in 1987, base2 has been responsible for design, manufacture and software for numerous control room systems worldwide. Products are developed primarily for the Transport and Life Safety industries. Engineering and manufacturing are performed at base2 facilities in Australia. This includes mechanicalmanufacturingviaComputerNumericControlled(CNC)equipment through to electronic assembly via an automated surface mount Printed Circuit Board (PCB) production line.

Current ongoing projects include the National Train Communications System (NTCS), the Victoria Regional Rail Communications Network (RRCN) and ICE integration with Sydney GSM-R Digital Train Radio System (DTRS).

Website: www.base2.com.au

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C O M PA N Y N A M E

Xxxxxxxxxx

Key differentiators UGL’s Rail division, which falls under the Rail, Defence and International (RDI) umbrella, has a strong philosophy of being an employer of choice not circumstance. Despite the reduction in the manufacturing space, the company has continued to evolve its maintenance division though diversification of services.

This has resulted in a new component overhaul division (COD), which is able to leverage its large manufacturing and workshop facilities for wider use. Split into mechanical and electrical, the new

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November 2015

division also utilises the strong partnerships it has built in mining and Rail with the likes of GE, Pacific National, Aurizon, Rio Tinto and several other similar organisations.

Newman said: “Many of our customers have some ability to do their own in-house maintenance in their own right. That’s why we sell parts to them as our external customers. But with the (COD) division we service, repair, refurbish and overhaul equipment as new.”

“One of the greatest technology advancements UGL has managed to achieve in the last two years and

SECTOR

successfully rolled out over the last six months has been our mobility solutions. We have invested heavily into Service and Asset Management Mobility (SAM) to ensure work execution efficiency and quality is maximised.”

SAM Mobility is a direct user interface for workshop employees to UGL’s quality and material resource planning. Mobility provides portability via an iPad (in a rugged case) so that technicians can perform routine tasks, recognise and create ‘on condition’ tasks, conduct and record ‘strip and quote’ tasks, review and enter

measurement points, and record serialised equipment changeovers.

UGL is now able to see all open work for rolling stock while out in the field, complemented by 24 hour support crew.

“It has changed the world of our service technicians, they’re now able to create service orders, and give real-time updates. It drastically reduces the risk of errors, has improved stakeholder engagement and provides excellent supply chain visibility. Giving technicians access to our systems and engagement of communication tools, like having email accounts and internet access w w w. u g l l i m i t e d . c o m

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UGL

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S U P P LY C H A I N

has had a positive employee engagement spinoff which is truly wonderful,” added Newman.

If this wasn’t impressive enough, UGL has also brought its own unique industry product to the market. The FlexiCurve™ bogie is UGL’s premium locomotive bogie, providing significant benefits in locomotive performance, reliability and maintainability. FlexiCurve™ is a family of bogies for applications ranging from 90t, 1 metre Narrow Gauge through to 160t, 1.7 metre Broad Gauge. UGL won the Regional (Newcastle) Engineering Excellence Award for this earlier in 2015. Developed in Australia by UGL Limited, the FlexiCurve™ has become GE’s bogie of preference when selling locomotives out of North America, something the company is incredibly proud of.

Asked about what the future holds for UGL, Newman concluded: “The outlook is positive in that we’ll continue to diversify and serve our customers with exceptional customer service, and as we migrate from a push to pull inventory strategy it will help us to help them. We’ll also be able to take a far greater level of proactive, pragmatic deliverables as we move forward with our technological solutions, so we’re in a very strong position in that regard.”

When the world and its industries change once more, UGL beyond all others will be very well positioned to maximise the upturn potential.

Company Information INDUSTRY

Supply Chain HEADQUARTERS

Level 5, 40 Miller St North Sydney NSW, Australia, 2060 FOUNDED

UGL originated as a small engineering business in Western Australia in the late 1960s EMPLOYEES

8,000 REVENUE

$2.3 billion

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Ergon E Regional Queenslan

Executive General Manager Peter Billing initiatives on the hori Written by: Robert Spence

Energy nd’s energy supplier

g discusses innovation and reveals upcoming izon for Queensland.

Produced by: Vince Kielty 75

C O M PA N Y N A M E

E

rgon Energy is more than just your average energy company. Founded in 1999, the government-owned corporation is a forward-thinking electricity provider. It services more than 720,000 customers across Queensland by supplying electricity and alternative solutions to residents and businesses from the coastal population to the rural and remote communities throughout the region.

Ian McLeod, CEO 76

November 2015

SECTOR

Anatomy of Ergon Energy The Queensland company is comprised of two sides: one that builds and maintains the electricity distribution network, and one that sells electricity to residential and business customers.

Ergon Retail is the customer facing part of the company, assisting customers in everything from opening new accounts, arranging location moves and managing electricity use to locating convenient ways to pay accounts, support systems and

“Innovation is huge for us. It’s an important part of our business and we’re always looking at new ways to apply new innovation throughout the company.”

–Peter Billing, Executive General Manager, customer service.

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Nexans Olex is Australia's trusted electricity industry partner; providing electrical cable products and solutions for over 75 years. From project design through to decommissioning, our local technical design and support team are there when you need us to keep your assets running and to let you focus on your business.

Our comprehesive product range includes solutions for:

Head Office 207 Sunshine Road Tottenham Victoria 3012 Australia Phone: 1300 CABLES

www.olex.com.au

SUPPLIER PROFILE

Employees: 350 Australia, over 20000 Worldwide Established: 1940 (Australia) Industry: Power Transmission and Distribution, Transport Networks and Infrastructure,Resources(mining,oilandgas,renewables),BuildingConstruction Products and Services: We are manufacturers and suppliers of a full range of electrical and data cables and electrical system solutions. Our products have been designed with local industry by our Australian technical team and best in class global research centres.

Ongoing Projects: APLNG Gas Field Electrification and Wells Online, Ichthys GasFieldDownstreamProcessingFacilities,ErgonEnergyPowerUtilityNetwork, Key to success: Our approach is to partner with our customers. We are involved in your success and provide solutions which help you achieve your goals. This is backed by a commitment to best quality manufactured products designed for your specific application and operating environment.

Future developments: LoSAG™ Covered Conductor is an exciting new product for power distribution networks which greatly reduces the risk of bush fires while also remaining compatible with existing systems for the lowest cost SWER replacement line option.

Company Mission: Nexans Olex aspires to be the first choice supplier of cable solutions in Australia. With a rich history at our core, we aim to draw on our global parentage to lead the electrical industry through technical innovation, quality and industry stewardship.

Management: • Tony Dunstan, Managing Director • Greg Stack, General Manager Sales • Tony Jones, National Manager Utilities & Contestables Website: www.olex.com.au

ERGON ENERGY

ENERGY

government rebates.

The distribution side of the business, Ergon Energy, provides energy services to residents and businesses while maintaining an electrical network that stretches roughly 160,000 kilometers of power lines across Queensland. Within the network operates 33 stand-alone power stations that provide energy to isolated communities within the region.

Additional services include accommodating connections for new technologies such as solar, as well as a small manufacturing group to handle the construction of module substations.

Unlike your typical energy provider, Ergon Energy is driven by innovation.

“Innovation is huge for us. It’s an important part of our business and we’re always looking at new ways to apply new innovation throughout the company,” said Peter Billing, executive general manager of customer service at Ergon Energy.

According to Billing, the company continuously seeks out new ways of improving service – whether through infrastructure or alternative energy sources – to better position themselves for the future.

“We recognised back in 2007 that the price of energy would become an issue and that we would need to adapt.”

Peter Billing, Executive General Manager, customer service. w w w. e r g o n . c o m . a u

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ADVANCED DIESEL FUEL WITH SOPHISTICATED ENGINE CLEANING TECHNOLOGY Caltex Active TecD is a high-performance diesel fuel specifically designed to clean-up performance degrading deposits from heavy-duty diesel-fuelled engines, such as buses, trucks, mining equipment and power generators, and keep them clean.

Caltex Active TecD works to help improve injector cleanliness, and consequently enhance fuel flow through the injectors and restore engine power.

ERGON ENERGY

ENERGY

“We recognized back in 2007 that the price of energy would become an issue and that we would need to adapt,” Billing revealed. “It got us thinking differently and we realized if we keep doing things the way we’ve always done them, the world will change and we’ll become obsolete.

“We may not be Apple or Google but we’re striving for innovation.”

To ensure creativity is alive and well within the organization, Ergon Energy strives to cultivate an atmosphere that empowers people to speak up and bring their ideas to the table.

“We encourage everyone in our organization from the top to the bottom to read and learn new things happening in the world. We encourage them to think of new ways of doing things and ways to apply those innovative ideas to our type

SUPPLIER PROFILE

ACTIVE TECD: THE FUEL OF THE FUTURE

Internal diesel injector deposits are of increasing concern in modern high pressure common rail fuel injection systems, which are manufactured to meet precise tolerances and operate with tiny clearances (down to 2-6 micron). These deposits can affect the response of the fuel injector, causing sticking of moving internal parts and loss of control of injection event timing, as well as the quantity of fuel delivered.

By cleaning up performance degrading deposits from an engine – and keeping it clean – Caltex Active TecD works to restore power, improve injector cleanliness and ensure better fuel flow through the injectors.

It is formulated with a high treat rate of Caltex’s advanced, proprietary additive system which also inhibits the formation of rust and corrosion. The anti-foaming agent in Active TecD reduces foaming to zero in industry standard tests, which in practicelessensbothsplashbackandodourscommonlyassociatedwithregular diesel, allowing for faster and cleaner fill ups.

Website: www. caltex.com.au/tecd

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EDITORIAL

C

altex and Ergon Energy’s Isolated Systems have formed an interdependent relationship based on collaboration, trust and shared values. Caltex’s central role is to supply diesel

fuel and lubricants to all of Ergon Energy’s 33 remote power stations, which provide dependable and stable electricity to remote parts of Queensland, including the Torres Strait. The relationship

between the two organisations is critical to ensure consistency of the power supply and to make sure that fuel is transported and delivered safely and effectively with minimal risk to the environment. Caltex has proven to be a trusted supplier and a key partner in Ergon operations.

In one of many dialogues between both companies to review operational efficiencies and improvement initiatives, Caltex proposed an opportunity for Ergon to reduce fuel consumption.

ActiveTecD fuel, one of three Caltex value-added fuel products, was suggested as being a good fit with existing infrastructure and logistics.

The fuel was claimed to offer a potential 2 per cent improvement in thermal efficiency (reduced consumption), by removing deposits in the fuel system and preventing further build-up. In prolonged operation this should help restore and maintain ‘new engine’ like performance for longer.

Caltex was able to demonstrate

the claimed effectiveness of ActiveTecD in the transport market, which established a performance test in the power station at Boulia, Queensland. Boulia was proposed to demonstrate the effectiveness of the fuel as it had a good mix of old and new engines, giving a credible trial at a load that was typical of the rest of Ergon’s fleet. Based on before and after thermal efficiency measurements, the data collected showed average fuel efficiency to be slightly better than the purported figure. This level of performance was sustained after many months of successful operation.

Caltex’s support has been with Ergon all the way, and its strong technical capabilities and experience is something on which Ergon Energy places a high value.

From a supplier management perspective, the Caltex relationship sets the benchmark against which all other Isolated System suppliers are compared.

“Work Safe, Home Safe”.

Established in 2007, Geiger Group is an infrastructure business providing electrical, civil, telecommunications and ancillary works in Queensland and Victoria from our Toowoomba, Brisbane and Melbourne offices, with capability nationally.

Manage and deliver: • High and low voltage distribution works including overhead and underground • Underground reticulation • Commercial and industrial electrical works including new builds and refurbishments • Earthworks, excavation and civil works including remediation and new works • Communication and data installation • Project management works Geiger Group has a proven track record of delivery in our key markets which include mining, oil and gas, civil, commercial and industrial construction, rail and energy sectors.

The Geiger Group vision for all staff is ‘Work Safe, Home Safe’.

Queensland: 5 Tait Street, Toowoomba Qld 4350 | PO Box 7009 Toowoomba South Qld 4350 | 07 4614 4300 Brisbane: PO Box 2017 Graceville Qld 4075 Victoria: 7 Kearney Street, Bayswater VIC 3153 | PO Box 888, Lilydale VIC 3140 | 03 9720 3289 info@geigergroup.com.au | geigergroup.com.au

ERGON ENERGY

SUPPLIER PROFILE

ENERGY

GEIGER GROUP

Employees: 150 Established: 2007 in Toowoomba, QLD Industry: Geiger Group provides Electrical, Civil, Telecommunications and Ancillary works with works being completed across Australia for some of Australia’s leading electrical, gas and civil suppliers.

Services: Works from high and low voltage and underground works, earth works and civil works to data installation. Project management and technical advice.

Ongoing Projects: Geiger Group are industry leaders in contracting services for overhead and underground electrical distribution network assets. Our key markets are Queensland and Victoria with National capabilities Website: www.geigergroup.com.au

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We spend all our energy forging Greg Sewell Forgings are honoured to be included as part of the nuts and bolts make-up behind Ergon Energy’s streamlined supply chain and are proud of the strong and lasting relationship that we have forged together.

For over 30 years now, Greg Sewell Forgings has been manufacturing and supplying quality steel forged & fabricated products to the Australasian market.

For all of your fastener and line hardware accessory requirements or to find out more about Greg Sewell Forgings, please contact our National Sales Manager – Mr Robert Borg on (02) 8814 5990 or email: rborg@gsforgings.com

‘Experience in forging’ www.gsforgings.com

ERGON ENERGY of business,” said Billing.

“When everyone is bringing something to the table, one idea might spur another. We encourage that.”

Putting innovation into action For Ergon Energy, company-

SUPPLIER PROFILE

ENERGY

wide collaboration is a key component behind one strategic focus: exploring new possibilities for collecting, consuming and conserving energy.

One example of this is the utilization of batteries.

“We’re seeing that batteries are

GREG SEWELL FORGINGS

Greg Sewell Forgings Pty Ltd is a major manufacturer and supplier of specialty, high and low volume components with a diverse range of capabilities. We have produced thousands of different components from low grade carbon through to high end stainless steel to meet the high requirements from the Power Industry, Mining, Rail, Agricultural, Automotive and the Fastener industry. Our flexibility allows us to offer single run low-volume to high-volume production at competitive prices.

A cornerstone of our business practice is to build mutually beneficial partnerships with our customers and suppliers, and to continually seek improvements for us and our customers through innovation and excellence. To this end Greg Sewell Forgings Pty Ltd has adopted the AS/NZS ISO 9001:2008 Quality Management System.

Website: www.gsforgings.com

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Driving Fleet Innovation

SG Fleet’s industry leadership and strong business performance is built on the company’s major competitive assets: exceptional relationships with customers through outstanding service quality, the ability to develop our offering through innovation, and the skills and experience of our people.

Whether you run a fleet of 5 or 10,000 vehicles, sgfleet is the answer.

Corporate fleets Government fleets Small to medium enterprise Salary packaging Passenger and light commercials Heavy commercials Mobile equipment Fleet management sgfleet will tailor the right package for you with flexible finance arrangements.

Visit our website: www.sgfleet.com

Call us on: 1300 138 235

SUPPLIER PROFILE

SG FLEET GROUP LIMITED SG Fleet Group Limited is one of Australia’s leading specialist providers of fleet management, vehicle leasing and salary packaging services. SG Fleet has a presence across Australia, as well as in the United Kingdom and New Zealand.

The company employs over 400 staff and has more than 90,000 vehicles under management.SGFleetlistedontheAustralianSecuritiesExchangeinMarch2014.

SG Fleet offers an extensive range of fleet management, leasing and salary packaging solutions to corporate and government customers, as well as heavy commercial fleet management and leasing services. Salary packaging solutions provided by the company include novated leases and associated vehicle management services for customers’ employees, as well as a range of other employee benefits.

The company has a unique position in the marketplace, built on the experience, product expertise and commitment of its team. SG Fleet prides itself on the strength of its relationships with blue chip corporate and government customers.

These relationships have been built on a customer-centric approach to service delivery and the development of bespoke but scalable solutions to meet the needs of individual customers.

Constant innovation allows SG Fleet to provide its customers with an industryleading proprietary technology platform that enables highly advanced fleet management capabilities. The company continually upgrades its solutions and introduces additional products and services to its range.

Management: • Robbie Blau, Chief Executive Officer • Kevin Wundram, Chief Financial Officer • Andy Mulcaster, Managing Director, Australia Website: www.sgfleet.com

THE TRANSFORMER PEOPLE

Power Transformers (≤550MVA) Distribution Transformers (≤5,000kVA)

Special Transformers

Compact MV Substations

Special Applications

Monitoring and Control Solutions

For more information about our products and services, please visit www.wtc.com.au

BUILT SMART

FOR LIFE

ERGON ENERGY part of our future,” said Billing when explaining the company’s ongoing partnership with Mitsubishi.

In 2012, the company purchased six Mitsubishi electric vehicles (EVs) and ran trials in Townsville over an 18-month period to understand customer acceptance of EVs and the eco system that supports them.

“We were able to examine how these vehicles were used, including how and when they charge, in order to better understand their impact on our network,” Billing said.

Ergon Energy recently secured another deal with Mitsubishi to integrate eight Mitsubishi Outlander

SUPPLIER PROFILE

ENERGY

plug-in hybrid electric vehicles (PHEVs) into their fleet, as well as finalizing a lease offer to employees that could see up to an additional 100 EVs provided for use later in the year.

“From an electricity perspective, the use of EVs is a natural synergy,” Billing said. “It’s the beginning of a new role of technology in the energy sector: Why wouldn’t we be on the ground floor running?”

While the partnership with Mitsubishi is a great starting point, it’s only the tip of the iceberg for Ergon Energy.

In July, Ergon Energy announced it was working with the government

WILSON TRANSFORMER COMPANY

Established in 1933 with a proud history, Wilson Transformer Company is a leading specialist in the delivery of transformer solutions. From our manufacturing base in Australia, we deliver solutions to a wide variety of industries and customers around the world including electricity generators, transmission and distribution organisations as well as variety of heavy and light industrial users.

Within our product range, our state of the art facilities are equal to the best the world has to offer. By using the latest design software, analytics and manufacturing technology, we engineer and manufacture our products in clean workenvironmentsincorporatingstrictqualitycontrolmeasures.Wealsohavea dedicated team of people for field operations and support services.

Throughourworld-classcapabilities,specialistknowledgeandprovenreliability, our customers can be assured of a quality outcome. We are building smart for life solutions and this means performance you can rely on.

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PERFORMANCE SOLUTIONS FOR ELECTRICITY GAS WATER UASG is Australia’s leading provider of retail meter reading and installation services in the electricity, gas and water sectors, and of end-to-end essential maintenance and inspection services in electricity distribution.

Our speciality brands, Skilltech and UAM, partner with customers to offer safe, compliant and reliable services. This commitment is evidenced by our 95% client renewal rate and outstanding safety record.

Our essential services support Ergon Energy every day by: ●

Inspecting and maintaining 250,000 poles and 50,000+ street lights a year in urban and remote areas

●

Conducting an Annual Road Patrol Program of 30,000+ street lights

●

Supplying quality field metering services, including reading, special reads, disconnections and reconnections to 2.4+ million accounts each year

Contact us today: 1300 377 170 enquiries@uasg.com.au www.uasg.com.au

ERGON ENERGY

SUPPLIER PROFILE

ENERGY

UASG

UASG provides performance solutions for electricity, gas and water networks.

With 1,500+ employees, 900+ vehicles and more than 24 years experience, we deliver quality specialist services covering: • Meter reading, installation and Advanced Metering Infrastructure (AMI) • Energy and water efficiencies • Asset inspection/monitoring • Data capture • Electrical overhead construction/maintenance • Pole reinforcement services • Vegetation management • Lighting efficiency programs • LIDAR • Survey, design and drafting Website: enquiries@uasg.com.au

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PROUD SUPPLIER OF ISUZU TRUCKS TO

ERGON

ENERGY

ISUZU TRUCK

DEALER OF THE YEAR DEALER

TONY IRELAND ISUZU

OF THE YEAR

SALES | SERVICE | PARTS LOCALLY OWNED & OPERATED FOR OVER 30 YEARS TONY IRELAND ISUZU | 36 DUCKWORTH STREET, GARBUTT 4814 | PH: 07 4726 7777 www.tonyirelandisuzu.com.au

ERGON ENERGY

SUPPLIER PROFILE

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TONY IRELAND TOWNSVILLE

Employees: 160 Established: 1985 Industry: Automotive Services: New trucks, new equipment, vehicle servicing and parts Management: Tony Ireland–Managing Director, Ben Lawrence – Sales Manager Marnie Crowell – Service Manager, Jason Smythe– Parts Manager Website: www.tonyirelandisuzu.com.au

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CoverTel in partnership with Viavi (was JDSU) provides the right test solutions to ensure your networks operate at the most efficient levels. We work with you throughout the entire network lifecycle to understand your needs so we can deliver the right solutions to help your business succeed. We see things differently so th the people who power your that business can, too.

Learn more about our approach at www.covertel.com.au Fiber optics and Ethernet test

Wireless test

Network visibility

CoverTel Telecommunications Group 114 Bakehouse Road, Kensington VIC 3031, Australia

Enterprise and cloud solutions

Phone: +61 3 9381 7888 Fax: +61 3 9381 7899 Email: info@covertel.com.au

SUPPLIER PROFILE

COVERTEL TELECOMMUNICATIONS GROUP CoverTel Telecommunications Group is an Australian owned company specialising in providing; • Telecommunications Infrastructure • Telecommunications Test & Measurement Solutions and associated Training • Rental of all equipment through the CoverTel Services division, and • Renewable Power Solutions through the Covertel Power division With more than 70 years experience in the Telecom Industry, our key objective is to build mutually beneficial relationships with our valued customers. We share our wealth of technical knowledge and deliver excellent customer service and support. We strive to meet our customer’s requirements and financial budgets by providing the right solution each time, the first time. This is made possible by offering a diverse group of products from well-respected and technically proficient global manufacturers.

CoverTel played an integral role between 2010 and 2015, when Ergon Energy expanded its telecommunications network by more than 250%. CoverTel worked diligently to assist in supplying Ergon with a standardised set of Ethernet Test and Measurement solutions to facilitate the expansion of their Communications and Teleprotection Network. These solutions delivered Ergon with key advantages including the complete confidence their new services operated according to specifications with maximum efficiency.

To see how we can make a difference to your business, or for further details please visit our website or contact us.

Director: John Iacovangelo Phone: +61 3 9381 7888 Address: 114 Bakehouse Road, Kensington Victoria 3031 Australia Visit our Website: www.covertel.com.au

ERGON ENERGY

SUPPLIER PROFILE

ENERGY

BUSINESSFRIEND

Businessfriend is the Ultimate App - a One-Stop Social Media Destination for Professionals Discover, connect and share with your colleagues and peers.

Communicate, manage and store your content and notate all aspects of your working life.

Website: www.businessfriend.com

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GMJ Equipment is the national leader in the design, manufacture and supply of both insulated and un-insulated mobile elevated work platforms, reaching heights from 10 to 70 meters across a wide range of configurations. All of our models feature the latest in MEWP technology, offering smooth, safe, and reliable operation. Celebrating our 30th year of manufacturing, GMJ continues to be on the leading edge of mobile elevated work platform development.

REACHING GREATER HEIGHTS • Australian manufacturer of Insulated MEWP’s

• Major inspections

• Cela uninsulated MEWP’s agent

• Maintenance & repairs

• Truck body building services

• Hire/lease

WWW.GMJ.COM.AU

Australian made & owned

32-34 Quality drive, Dandenong South, VIC 3164, AUSTRALIA Email: reception@gmj.com.au | Phone: (+613) 9706 4550 | Fax: (+613) 9706 4515

Partner With Ergon Energy & Powerlink for over

20 YEARS

Pomfret’s BACKHOE HIRE

We specialise in the installation of electrical conduit, fibre optic, pits, substation foundations, general building and maintenance; and general earthworks.

Phone: 07 4927 8742 | Fax: 07 4921 0105 | Email: pomfrethire@hotmail.com David: 0428 792 678 | Troy: 0438 278 742

Brisbane | Sydney | Melbourne | Adeleide | Perth

Elevated Work Platform Specialists Latest in EWP Technology Reliable Equipment From 12m to 103m Back Up Service Australia Wide Our Fleet Includes Live Line & Under Bridge Inspection Units

P: 1300 LINCON

E: hire@lincon.com.au

www.lincon.com.au

Tel: +61 7 4061 6426 Transportation and Logistics, container movement, general freight deliveries with the inclusion of crane trucks and truck mounted forklifts and oversize loads.

Meeting Australian Safety Standards, Our Trucks are equipped with Tracking Systems and Cameras.

www.innisfailcarrying.com.au

ERGON ENERGY to create an EV highway with Australia’s first solar-powered fastcharging station.

“This is an opportunity to create a need in the market,” said Billing. “If you wait for everyone to get electric vehicles, it won’t work—it will be too late. We needed to be similar in our thinking of leading by example and getting the ball rolling.”

Billing also revealed the company

ENERGY

is about to purchase three Battery Packs for their hydraulic elevated work platform field trucks. “For us, the payback is reducing our diesel consumption while also eliminating the noise these machines make.”

Not stopping there, Ergon Energy is also seeking to utilize alternative energy solutions in other areas of its businesses.

“We’re actually putting batteries on

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The world’s first shear-bolt action mid-span splice

MTRS from Sicame Australia - the new mechanical tension repair splice has been developed to overcome many of the issues effecting poor jointing of bare overhead conductors with either compression, helical or spring type splices.

High-torque, shear-head bolts apply pressure points on the conductor via an internal pressure plate in a unique wave-like pattern along its length, thus ensuring superior and reliable mechanical and electrical performance.

sales@sicame.com.au | www.sicame.com.au

SICAME AUSTRALIA HQ

SICAME AUSTRALIA NSW

23-25 Union Circuit Yatala, QLD, Australia (+61) 7 3807 7022 (+61) 7 3807 7522

4/36 Holbeche Road Arndell Park, NSW, Australia (+61) 2 9621 3155 (+61) 2 9622 7120

STIRLING HELICOPTERS Central Queenslands leading helicopter company operating a broad range of helicopter fleet and offering a vast range of professional helicopter services with very experienced and professional pilots.

We offer extensive helicopter charter services to the following industries: • Mining, Gas and Power • Corporate and Tourism • Defence and Government • Agriculture

EXPERIENCED PILOTS AND AN IMPECCABLY MAINTAINED FLEET

CONTACT:

Servicing Central Queensland and South West Queensland Email: admin@stirlinghelicopters.com.au Phone: 07 4937 1180 Web: www.stirlinghelicopters.com.au Mobile: 0429 371 180

ERGON ENERGY the end of remote and rural sections of the electricity network and using them as support in times of high load,” said Billing. “The benefits are immense because they don’t need to be augmented and they store energy in the off-peak times and then feed back into the network during highpeak times.”

According to Billing, the company is in the process of working with

ENERGY

some developers to implement batteries in subdivisions as well.

“The outcome could potentially build a type of distributed generation network in a housing subdivision, which would provide an array of benefits to customers.”

Ergon Energy is also building its retail business to reflect more opportunities for solar technology.

In August, Ergon Energy forged

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ERGON ENERGY an alliance with Californian electricity storage developer Sunverge Energy to launch a limited commercial rollout of its power systems in Queensland homes.

The partnership involves installing SunPower solar panels and Sunverge energy storage systems in 33 homes in Toowoomba, Townsville and Cannonvale in a program that will receive $400,000 of funding by the Australian Renewable Energy Agency.

The power system is comprised

of back-up power, a six-kilowatt inverter with 11.6 kilowatt-hours of energy and communications, and control capability that allows the company to collectively manage the system to increase the efficiency of power supply on its grid.

“This partnership will help us better understand the technology and where we stand in terms of our network. It’s helping us model what our future network could look like,” Billing explained.

Maintaining today’s assets, creating tomorrow’s power solutions UGL provides whole of life asset solutions for large and complex power systems across Australia, New Zealand and Asia, from electrical substations and transmission lines to advanced power stations.

Throughout Queensland, UGL has been a proud supporter of Ergon Energy for 8 years working together to deliver 62 substations and associated infrastructure to provide electricity to 734,000 customers in homes and businesses across regional Queensland.

The key elements to UGL’s success are our close working partnerships and decades of experience in delivering engineering construction and O&M solutions to our clients.

www.ugllimited.com

ENERGY

Thinking forward A major initiative Ergon Energy has undertaken is in the form of disaster relief. The company is currently running a series of scenarios to better understand the network in the event of natural disasters, as well as learning how it could improve.

“Right now we’re doing two things, the first of which is running a series of exercises to test the readiness of our network and whether we need to reconfigure it or change critical aspects to make it more resilient in the future,” said Billing.

“The second thing is technology. We’re looking to interact with a number of technologies such as crowdsourcing and social media to find out if these are applicable for us.”

The company is also holding workshops to better understand response perspectives from people and companies with actual experience dealing with these disasters.

“Input from Rod West from Entergy in the United States has been paramount for us,” Billing.

“His experience from Katrina and lessons learned were really insightful and important for us to consider with our network.”

“All of these workshops, exercises and reports are better preparing us for the future,” said Billing.

“We’re thinking ahead and about where we want to be in 2020.”

With Ergon Energy at the helm, the people of Queensland are in good hands—today and in the future.

Company Information INDUSTRY

Utilities; government agency HEADQUARTERS

420 Flinders St Townsville, Queensland, Australia FOUNDED

1999 EMPLOYEES

4,500 PRODUCTS/ SERVICES

Utilities; government agency

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CH T OE M PA W HNOY’ SN W AM HE O OF ERGON ENERGY Australia and is Chairman of Ergon Energy Queensland Pty Ltd, SPARQ Solutions Pty Ltd and Ergon Energy Telecommunications Pty Ltd.

IAN MCLEOD

Chief Executive Officer Ian McLeod is responsible for the business’ overall direction and, ultimately, for meeting the service delivery expectations and requirements of Ergon Energy’s customers, the community and regulators, as well as the business and financial objectives of shareholders. Ian brings extensive electricity industry experience to Ergon Energy; experience gained through management roles in the private contracting industry, in Powercor Australia and the State Electricity Commission of Victoria and Ergon Energy. Ian is a director of Energy Supply Association of 112

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DAVID EDMUNDS

Executive General Manager, Network Optimization David Edmunds is responsible for the safe, efficient and effective utilization of Ergon Energy’s electricity distribution and associated communications networks and, where necessary, the delivery of new major infrastructure projects or other non-traditional solutions. He brings experience in both the corporate and public sector, to the executive including executive management, engineering, operations, and contracting, as well as proven leadership capabilities.

E X E C U T I V E S P OSTELCI G TO HR T

David has held senior roles in the electricity and gas industries of New Zealand, as well as in local government.

involved in the deregulation of the electricity industry in South Australia in the 1990s. He is on the board of Energy Skills Queensland.

PETER BILLING

MIKE HUTCHENS

Peter Billing is responsible for the operational effectiveness of the distribution business and for the safe, efficient operation and maintenance of Ergon Energy’s network. He is also responsible for supply to Ergon’s isolated communities and the commercial delivery of modular infrastructure and generation solutions. He brings a wealth of industry, leadership and change management experience to the executive, from trade roles to management. Peter was directly

Mike Hutchens is responsible for managing the financial and commercial aspects of Ergon Energy’s business, including strategic procurements, as well as the business’ legal counsel and risk and assurance program. Mike has significant accomplishments in financial and general management and has worked for a diverse range of businesses, including publicly listed multinational corporations, predominantly in the mining industry, as well as large professional services firms.

Executive General Manager, Customer Service

Chief Financial Officer, Finance and Corporate Services

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Modex Energy Containers and cabins with conviction

A fast-track growth company, Modex Energy has has become a global player in the oilfield services space.

Regional Director Per Ingar Amlie talks about how to succeed in a tough market Written by: John O’Hanlon Produced by: Vince Kielty

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odex Energy was first incorporated in 2011, in Hong Kong. Founded in China by Per Ingar Amlie, Paal Wilsgaard and Tore Ertzaas, it was perceived that there was growing demand in the offshore oil and gas market, for a dedicated manufacturer of service equipment.

The market was beginning to expand after the financial crisis of 2008, and the founders were not only thoroughly versed in the varying technical requirements of international oil service, exploration and production companies but also understood the equally important 116

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aspect of capital raising. On these two pillars Modex has been able to expand at a breathtaking rate and today has a presence in USA, Norway, Singapore, Indonesia, Brunei, Malaysia, Australia, UAE and Brazil, and operations in Nigeria, Ghana and Saudi Arabia as well.

Amlie, who is now based at Singapore and overseeing the company’s operations in the Asia/Pacific region, believes that a key differentiator for Modex Energy is that it is the only truly integrated Cargo Carrying Unit (CCU) manufacturer and rental provider in the world. Unlike other

ENERGY

CCU providers who subcontract their production, Modex owns and operates the most advanced CCU and cabin manufacturing facility in the world, capable of producing 5,400 CCUs and 120 cabin units per year.

CCUs and cabins come in a variety of forms. They are certified

by DNV (Det Norske Veritas) following design review and testing and inspection of the production process as well as the finished product. The containers are issued with a “Type Approval Certificate,� which enables the manufacturer to produce the same type over and again. The China factories

manufacture in accordance with requirements of ISO 9001:2008 and ISO 14001:2004 Modex is also registered with the Scandinavian Achilles JQS, which is used widely in the North Sea oilfields.

The company started to grow organically in an emerging market, using a combination of debt and equity to fund acquisition or merger with larger and more established players in mature markets. In 2014 it merged with the Norwegian company Euro Offshore, which is now trading under the Modex name, and earlier in 2015 it also merged with Louisiana-based Gauthiers to w w w . m o d e x e n e r g y. c o m

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PEOPLE DRIVE OUR BUSINESS

IJS GLOBAL

is a specialist provider of multi modal, worldwide freight services to the Oil and Gas industry.

Our experienced, dedicated project teams provide a full range of services including pre-project planning, cost and benefit analysis, project management and execution. Our combination of knowledge, experience, agility and sophisticated IT systems make IJS Global a trusted partner to the Oil and Gas industry and a true extension of your business.

RO

C

S

Whether it’s customers, employees or other stakeholders, we believe that investing in relationships is a foundation for success.

AD

People drive our business

A I R O C EA N LO G

I T IS

IJS Global (UK) Limited - Glasgow 4A Bairdsland View Bellshill ML4 1RZ Phone: +44 1698 742250 Email: infoglasgow@ijsglobal.com www.ijsglobal.com

MODEX ENERGY IJS Global is a specialist provider of multi modal, worldwide freight services to the Oil and Gas industry.

IJS Global is proud to be chosen by Modex as a preferred global logistics partner The IJS Global dedicated O&G team provide added value to the Modex business though flexible, tailored solutions, cost reduction, increased productivity and improved reliability.

The vision at IJS Global is built upon customer engagement providing transparent and efficient forwarding solutions to customer specific requirements.

Modex focuses on their core business whilst IJS Global provides seamless logistics and business solutions.

ENERGY

create the world’s third-largest offshore container company, with an inventory of 17,000 units, a global presence and comprehensive service offerings from engineering and manufacturing to the sale and leasing of offshore containers and modules. This gave Modex far greater access to the North American oil and gas market, especially operators, contractors and service companies in the Gulf of Mexico, as well as further in-house manufacturing design and production capacity.

This growth curve, though impressive, has not taken the company to quite the position Per Ingar Amlie thinks it should occupy. It has the global number two

SUPPLIER PROFILE

IJS GLOBAL

Employees: 550 staff Established: 2004 Industry: Supply Chain Logistics and Freight Forwarding Services: Air, Ocean, Road Imports/ Exports and Warehousing including Express, Time Critical Ongoing Projects: Specialised in Pharmaceutical/Healthcare; Oil & Gas/ Energy, Aerospace, Automotive; Telecoms & Technology; Consumer & FMCG Website: www.ijsglobal.co.uk

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Quality Reliability Delivery

Regis Marine Offshore Services Pte Ltd was

established in 2012. With extensive contacts and resources available at our disposal, we are able to provide value-added services, quality products and equipment, all at competitive prices. Our wide range of products allowing us to fulfill a broad spectrum of markets needs.

As an integrated provider of various products and services, we strive to provide customers that best meet their needs. With our extensive network in the regions, and global business partners, we are able

to reach out to a global market both efficiently and effectively.

Our areas of expertise includes supply of various reputable wire ropes to the Oil & Gas, Marine & Offshore, Crane Sectors. Strong alliance with major stockiest for high quality wire ropes, wire rope related fitting, anchor chains and fitting and quality marine Deck Fitting and Machinery. We are specializing in supplying DNV 2.7.1 rated Wire Rope Slings.

Authorized Distributor

Regis Marine Offshore Services Pte Ltd 21, Bukit Batok Crescent #27-83 Wcega Tower, Singapore 658065

Tel: (65) 6659 2808 Fax: (65) 6659 2308

www.regispl.com

MODEX ENERGY

ENERGY

slot in its sights, though it might take a little longer to challenge the market leader, the UK’s Swire group, he concedes. Nevertheless Modex is keeping ahead of the market in a number of ways. One of these is by responding to cost pressure from the customers in the face of depressed oil prices. “There’s less slack in the logistics operations, and clients are moving towards tracking solutions to identify slack in their operations and remove it. One area we can contribute to cutting costs is by introducing far greater levels of standardisation – currently there are rather a lot of different CCU designs in use, in different parts of the world for example, but there is a lot of scope for rationalising the product. Now, though, global standards are being introduced for equipment. This will reduce

SUPPLIER PROFILE

REGIS

Regis was established in 2012 & have immediately understand the offshore market requirement for Lifting Slings certified to DNV 2.7.1. We have worked with the various reputable brands suppling components which are certified to DNV 2.7.1. We want to assure to all our valued customers that “Safety is our Top Priority” & we only supply certified & quality products. We leave nothing to chance. With the new accreditation of “LEEA” in 2015, we have also extent our Testing Services to carry out Inspection & Testing for all Lifting Gears & Appliances.

We are also proud & honoured to be appointed as “Stockiest Distributor” & “Service Centre” by “Tiger” and currently we have setup a new warehouse cum servicing facility with stocks readily available to cater for the industries needs in our area.

Regis Corporate Philosophy & Culture : “Quality, Reliability, Delivery” Website: www.regispl.com w w w . m o d e x e n e r g y. c o m

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MODEX ENERGY

the cost of manufacturing and also benefit operations and maintenance whether you rent the equipment or purchase it.”

Falling hydrocarbon prices affect demand but linked to the current low price of steel they do offset manufacturing costs. “I’d say that the oil industry has contracted by up to 40 percent over the last couple of years. I think we have passed through the panic stages where nobody knew when prices would bottom out, and most players are adjusting themselves to an oil price between $50 and $60 a barrel.”

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continued and is continuing to expand in this market environment is a great achievement. With strong backing in Europe and Asia, it is in the great position of being able to continue to expand if the right investment opportunities present themselves, he says.

In common with corporations large and small around the globe, one area of continuing investment for Modex is in its IT infrastructure.

“Right across our industry now, everyone is having to look at how they can better control their assets.

So if we do not invest we will be left behind – but our strategy is not to

ENERGY

keep up but to lead, which is why we are investing in our entire supply chain from procurement, through manufacturing right through to equipment supply, installation and maintenance.

There has been too much slack in the offshore market, and we are using IT tools to remove that, and increase utilisation of our equipment, and become more efficient generally.”

Inevitably, since Modex has grown through amalgamation with a number of pre-existing organisation, it has had to confront the issue of using a variety of different IT platforms. To address this Modex has taken radical steps, says Amlie, to turn a problem into an asset. “It has been a chance to pick out which systems were the best for us, phase others out and introduce new platforms, on the principle of taking the best practices from each of the companies and bringing them into the group.”

Looking back on progress to date, Per Amlie stresses that the quality, regulatory compliance and design of the products are only a beginning.

The company’s clients gain competitive advantage in a cut-throat market by being able to depend on timely maintenance and repair work, modification and upgrading, and inspection and testing services from Modex. Its service options include lifetime spare part support, ISO-connectors and hook up cables, provisions of personalised support and assistance with logistics. All of these service offerings combine to create a one-stop solution in this segment of the market.

Company Information INDUSTRY

Energy HEADQUARTERS

140 Cecil Street, PIL Building, #09-01B Singapore FOUNDED

2011 EMPLOYEES

200 REVENUE

Not disclosed

w w w . m o d e x e n e r g y. c o m

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Shamrock Civil Delivering Certainty: Shamrock Civil

CEO Andrew Kerr discusses recent and upcoming projects, the company’s expansion into PNG, as well as highlighting Shamrock Civil’s commitment to client relationships and safety.

Written by: Robert Spence

Produced by: Bryan Giles

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Manus Island Project

S

hamrock Civil operates across five offices in Australia and Papua New Guinea, delivering services to the gas and mining, transport infrastructure, commercial, defence and government development sectors. Their civil construction services include bulk earthworks, roadworks, demolition, large scale electric, plumbing and communications services.

Shamrock Civil has been providing safe, sustainable and smart solutions since 1994. Along with the company’s comprehensive service offering, they are committed 126

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to their clients and place value and emphasis on creating and maintaining long term relationships.

Projects at hand Shamrock Civil is currently engaged in a variety of new projects in Australia. The latest is a $16 million infrastructure project in Papua New Guinea to upgrade road and bridge links in the Manus Province “The project involves the upgrade of 26 kilometres of road from the airport to the township,” said Andrew Kerr, CEO of Shamrock Civil.

The scope of works includes earthworks, pavement, road repairs

CONSTRUCTION

Kin Kora Stage

and reconstruction, bridge repair, construction of road furniture, kerb and channel, bitumen sealing works, stormwater drainage works, and bank protection.

According to Mr Kerr, the company has been awarded additional scope of work due to its exceptional performance on the project. “The Repairs and Renovations contract on Manus Island have launched us into the international construction arena,” Mr Kerr said.

The project is estimated to be completed by January 2016.

Shamrock Civil has recently expanded its geographic footprint down the eastern seaboard to Melbourne, where the company is currently performing works for Transpacific Cleanaway.

As principal contractor on the Victory Road

“We work hard to attract and retain quality employees so that clients, partners and our people gain the advantage of having access to both seasoned experts and promising young talent” – CEO Andrew Kerr.

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“A reliable source of quality forms�

CERTIFIED PRODUCTS FOR INSITU CONSTRUCTION

Servicing the civil industry since 1994

Brisbane: (07) 3801 5666 | Sydney: 0437 015 666 Email: info@manholeformhire.com.au

www.manholeformhire.com

Cell 4B (Phase 2) project, the scope of works involve landfill cell reconstruction, subgrade works groundwater collection system, clay liner and leachate collection system.

Next in line is the New Generation Rolling Stock (NGRS) Maintenance Facility in Wulkuraka. The project, which aims to increase train fleets to meet the growing demand for rail services in Queensland, will see the company perform a wealth of services, including cut and fill earthworks, pavements and inground services.

SHAMROCK CIVIL

CONSTRUCTION

“The project has achieved over 140,000 hours without LTI (Lost Time Injury) and MTI (Medical Treatment Injury),” said Mr Kerr. “This is a significant accomplishment that represents our commitment to the ‘Safety for Life’ initiative, which promotes the links between health and safety at work and at home.”

Another project in the works for Shamrock Civil is the Kin Kora Stage 2 Intersection Upgrade. According to Mr Kerr, the project involves replacing an existing roundabout with traffic signals in one of the busiest intersections in Gladstone.

“Construction to date has included

installation of new stormwater drainage lines, vegetation removal, earthworks, installation of temporary concrete footpath and bus stop and the installation of a 600mm RCP under road bore,” said Mr Kerr.

“We are on track to open to traffic in early 2016,” he added.

In addition, Shamrock has completed the Ocean Drive Slope Stabilisation project in NSW, their first contract in the region. Although the company encountered 20 days of wet weather, it was delivered ahead of schedule.

“The works were performed for Richmond Valley Council and

Making safety a priority on site w w w. s h a m ro c k c i v i l . c o m . a u

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Manus Island Project 2

SHAMROCK CIVIL

CONSTRUCTION

consisted of slope stabilisation using gabion baskets and boulder walls along the shore line of the Evans River,” said Mr Kerr.

“The 20 days of wet weather was mitigated by sequencing the gabion basket installation works and self-performing critical elements of the works ourselves.”

Andrew Kerr CEO

Projects in Papua New Guinea In an effort to expand its horizon while showcasing its versatility, the company has recently established a local company in Papua New Guinea, named Shamrock PNG Ltd (SPNG).

“We have over 10 employees established in our two offices, one in Port Moresby and one on Manus Island to cater for the growing demand in PNG,” said Mr Kerr.

For Mr Kerr, it’s only the tip of the iceberg. The Leslie Zeeman Director company was recently awarded the Tari to Komo Highlands project for the Department of Works and Implementation.

“The project is comprised of upgrading and sealing a 42 kilometre section of road, as well as culverts, bridge works and services in the Hela Province.”

In addition, the company recently completed a $76 million joint-venture project for leading natural gas explorer and producer QGC. “The BCIX Ponds Package project reached completion in March 2015,” said Mr Kerr. “We saw some outstanding results from our teams delivering the scope of works to the client’s design specification, 1000 days LTI and MTI free, eight weeks ahead of schedule, on budget and without any variations.” w w w. s h a m ro c k c i v i l . c o m . a u

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Mr Kerr added, “We maintain a strong working relationship with Golder Associates and QGC and look forward to working with them into the future.”

is another aspect the company continuously seeks to improve.

“Shamrock Civil strives to create an inclusive culture in which difference is recognised and valued.

We understand the significant of Winning culture fostering a diverse workforce and Shamrock Civil is committed to are committed to increasing the attracting and retaining the best representation of women, and employees in the business by achieving a greater balance of investing in them over the long term. gender, ethnicity and nationality That philosophy has cultivated into a throughout our operations.” winning culture.

With employees in mind, the “We work hard to attract and retain company has implemented a wide quality employees so that clients, range of programs to further the skills partners and our people gain the and opportunities for their staff. advantage of having access to both “We offer our employees seasoned experts and promising opportunities to practice and extend young talent,” said Mr Kerr. their professional capabilities According to Mr Kerr, diversity through tertiary education, 132

November 2015

CONSTRUCTION

apprenticeships, course and graduate programs.”

Two components close to Shamrock Civil’s core are safety and community.

“The health and safety of our people is our number one value,” said Mr Kerr. “Our strong health and safety culture can be attributed to our ‘Safety for Life’ initiative, which focuses on providing a supportive working environment for our employees, subcontractors and partners.

The Safety for Life Program has been effective throughout the company by reminding employees to stop and think twice about what they are doing and if their activity is safe. Practicing this daily can save a life.”

Last but certainly not least, Shamrock Civil is committed to leaving a lasting legacy in the communities in which it operates. The company is keen on assisting local communities through infrastructure, employment and training.

“We are active participants in our local community, sponsoring fundraisers such as the Camp Quality Charity Golf Day. Our employees dedicate their time into helping those who need it most, with all of our proceeds from the Golf Day going to children living with cancer.”

The company delivers tangible benefits as well. Shamrock Civil has recently donated $10,000 to Our Lady of Sacred Heart International School in Kavieng, Papua New Guinea. This support took the rugby league students to the Confraternity Cup in Brisbane, to play with local Brisbane students.

Company Information INDUSTRY

Construction HEADQUARTERS

195 Cobalt St Carole Park, Queensland, Australia, 4300 FOUNDED

1994 EMPLOYEES

200 REVENUE

N/A

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DTS Food La

Breaking down the

CEO Graeme Richardson discusses the growth o capabilities in the field of fo

Written by: Sasha Orman Pr

aboratories

e science of food

of DTS Food Laboratories and its expanding ood testing and auditing

roduced by: Rob Benson 135

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DTS Food Laboratories was founded in 1954 in Melbourne as Dairy Technical Services

N

Graeme Richardson, Chief Executive Officer 136

November 2015

utritional values, pesticides, allergens, GMOs—people want to know what’s in their food, and transparency in the food and beverage industry is more important today than ever before.

In 1954, DTS Food Laboratories (DTS) formed to lend its analysis expertise to Australia’s dairy industry. Over the years, the company has risen to national recognition as a trusted name in the marketplace, providing analysis and support to clients including Murray Goulburn, Fonterra and Warrnambool Cheese & Butter, as well as Dairy Food Safety Victoria and authorities throughout New South Wales and Queensland. Maintaining continuous accreditation from the National Association of Testing Authorities (NATA) since 1961, DTS now services the needs of the wider

SECTOR

food manufacturing industry as well.

Client-driven investments DTS maintains a strong investment program aiming to engage its clients and improve their experience, trimming turnaround times and adding to its range of capabilities.

“We’ve been gradually adding to the range of services that we provide to ensure that the companies are able to get their total needs met by a single company,” says Graeme Richardson, CEO at DTS. “We’ve been adding testing capabilities for those emerging issues such as pesticide residues, allergens, and recently identified bacterial species that can cause sickness or death.”

“We have a philosophy that not only should we be able to do the testing, but we should also be able to provide technical advice to our clients to help them understand the results. It’s a total line of service.” – Graeme Richardson, Chief Executive Officer DTS Food Laboratories

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C O M PA N Y N A M E

DTS can provide the services cheaper than what it would cost to run testing internally

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SECTOR

In 2012, the company bought the cutting edge laboratory Food Allergen Control Training Analysis (FACTA), giving clients access to Australia’s leading analytic capabilities in the allergen field. To help clients make sense of these analytics, DTS has invested heavily in support services.

“We have built significant technical support that we can offer our clients,” says Richardson. “We have a philosophy that not only should we be able to do the testing, but we should also be able to provide technical advice to our clients to

help them understand the results.

It’s a total line of service.”

The appeals of independent assessments Internal audits and checks are routine in the food and beverage industry, but as Richardson explains, third party testing is key to acceptance of a product by customers. “It’s an independent assessment of product,” says Richardson. “We can’t be influenced by pressures to modify our results.”

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consistently partner with a third party testing service. Another key factor is the reduced lead-time specialists like DTS provide.

“Being the largest supplier of food testing services in Australia means we can offer faster turnaround times especially in Chemistry because we start more batches per week of

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each test and handle bigger volume surges when customers have problems with their products” says Richardson.

A full suite of fast, reliable services is of particular appeal to businesses that service the short shelf life ‘ready to eat’ markets where shelf life is absolutely critical.

FOOD DRINK FRANCHISE

“For businesses that do their own testing, the loss of a quality manager can be a major disaster, and quite often they are not easy to replace— especially if the facility happens to be outside a capital city,” notes Richardson. “Generally DTS can provide the services cheaper than what it would cost to run testing internally, and this fact has seen a number of factory laboratories shut down, and DTS carries out the testing at its laboratories in Melbourne, Sydney and Brisbane.”

Paul Bellchambers National Sales & Marketing Manager

DTS carries out the testing at its laboratories in Melbourne, Sydney and Brisbane

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D T S F O O D L A B O R AT O R I E S

DTS maintains a strong investment program aiming to engage its clients and improve their experience

Seamless service through teamwork In a complex environment where efficiency and precision are of the ultimate importance, coordination between departments is paramount.

“Whether it’s just routine testing or whether a client is trying to sort out production issues, we need to be able to get their samples into our 142

November 2015

system quickly, move it through our system efficiently, and get the results out as soon as possible,” says Richardson. “Each of these steps involves a different group of people.”

Teamwork is encouraged as a core part of DTS company culture, fostered through extensive training opportunities, including

FOOD DRINK FRANCHISE

management certificates and diplomas in partnership with Victoria University in Melbourne.

“We put a lot of effort into training and developing our staff,” says Richardson, noting that there are many reciprocal benefits to this practice. “We have quite a positive work environment—modern facilities with a lot of natural light, and flexibility in meeting peoples’ needs. In return, people tend to go the extra mile.

When there’s a sudden surge of business or an issue arises that needs to be addressed quickly, people are prepared to dig in and help.”

The road ahead “Our task is to meet the needs of our client. That’s how everything is judged, and that’s what makes us a trusted partner, because that’s what we do for our clients,” says Richardson.

DTS Food Laboratories has a rich history of service behind it, and Richardson sees positive things to come as the business continues to spread its wings to new sectors and new clientele.

“I think the future is exciting,” he says. “We will continue to add capability, and we look to extend the range of clients that we service and to expand geographically.”

As consumers increase their interest in their food, and transparency becomes ever more critical, there is plenty of testing and analysis left to do—and DTS is ready for the challenge.

Company Information INDUSTRY

Testing and auditing services HEADQUARTERS

Unit 3 63-71 Boundary Road North Melbourne, Victoria Australia, 3051 FOUNDED

1954 EMPLOYEES

400 REVENUE

$50 million

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Hutt Valley District Health Board (DHB) New heights in medical technology Executive Director Russell Simpson discusses new innovations and expansions for Hutt Valley District Health Board Written by: Sasha Orman Produced by: Bryan Giles

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A new MRI was installed in 2014

A

t the start of 2001, New Zealand’s healthcare landscape changed significantly with the passing of the New Zealand Public Health and Disability Act 2000 and the establishment of district health boards to serve the country’s regions and cities. Located 20 minutes from Wellington, the Hutt 146

November 2015

Valley District Health Board (Hutt Valley DHB) meets the needs of roughly 145,000 citizens of Hutt City, Upper Hutt, Petone, Wainuiomata and Eastbourne.

With a focus on technology and structural improvements, Hutt Valley DHB is dedicated to providing a better quality of healthcare for its community with each passing year.

SECTOR

Shorter stays and better service through technology An important part of quality health care is swift and efficient service, ensuring that patients are able to return to their everyday lives as quickly as possible. As populations grow, meeting that demand with prompt response times grows more difficult.

In 2011, Hutt Valley DHB began laying the groundwork for a sophisticated digital Operation Centre at Hutt Hospital that would use dashboards and tracking

– Russell Simpson Hutt Valley DHB executive director allied health, scientific and technical

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Cisco Connected Health

H U T T VA L L E Y D I S T R I C T H E A LT H B O A R D ( D H B ) systems to help achieve new levels of patient service.

“The idea for the centre was born from agroup of staff visiting a local manufacturing business which was using new technology for tracking the flow of production,” explains Russell Simpson, executive director allied health, scientific and technical for Hutt Valley DHB. From these small beginnings, a whole team of staff from computer analyst programmers and clinical leads to executive sponsors came up with the concept of an Operations Centre. Subsequent visits to Bay of Plenty and Counties Manukau DHBs further refined the concept of how this technology could work in a hospital setting, and

the Hutt team implemented a system which saw the DHB move away from a mainly paper-based tracking system to an electronic one.

Hutt Hospital’s new Operation Centre system, which was officially launched in February of 2013 in the hospital’s new emergency department and theatre wing, enables heightened organisational visibility to better attend to the individual needs of patients.

“The hospital’s activity is coordinated and functions like a ‘central brain’ that helps staff to take a whole-of-hospital approach to planning, monitoring and resourcing,” says Simpson.

Through the use of radio frequency identification devices

New CEO Dr Ashley Bloomfield - the first time that Hutt Valley DHB has been led by a clinician.

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“Planning collaboratively will allow for the creation of both an individual and collective view of options and ways to optimise the use of resources” – Russell Simpson Hutt Valley DHB executive director allied health, scientific and technical

(RFIDs) and interconnected LCD screens, staff are able to stay up to date on patient flow across theatres, clinical support services and hospital wards. The centre’s dashboard system helps hospital staff track patient triage through the emergency department and staff can view important information such as laboratory results.

An added benefit is secure access for staff working remotely; this allows them to have the information contained on the LCD screens at their fingertips.

The process has already seen significant results, helping Hutt Valley DHB rise up in its

Hutt Valley DHB is based at Hutt Hospital, 20 minutes from Wellington 150

November 2015

H E A LT H C A R E

efforts to meet health targets set through the New Zealand Ministry of Health.

“In May 2015, Hutt Valley DHB’s performance against the target of shorter stays for patients in emergency departments had increased by five per cent, and the DHB had achieved the national target of 95 per cent,” says Simpson. “This means 95 per cent of patients were admitted, discharged, or transferred

from the emergency department within six hours. The target is a measure of the efficiency of flow of acute, or urgent, patients through public hospitals and home again.”

Further innovative developments To further augment its successful Operation Centre program, Hutt Valley DHB has integrated the

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Laboratory staff at work

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H E A LT H C A R E

use of electronic whiteboards, which have been fitted in all of the hospital’s wards. The whiteboards help hospital staff track patient status and yield data points like estimated date of discharge, the care the patient requires from staff in different departments and the length of their stay.

“Developments like this are of immense value to hospital staff, says Simpson. “These enable staff to share information quickly and match staffing to clinical demand, ultimately improving patient safety.”

He adds that the Operations Centre has helped Hutt Valley

DHB effectively combine three key activities—operational planning, resourcing, and daily monitoring / response coordination—to better achieve the following four goals: · Ensure the hospital can allocate staff with the right skills in the right place for safe patient care across the hospital · Help the whole hospital to meet its targets · Help staff to respond more quickly and efficiently to changes in demand and manage variance · Enable the hospital to forecast predicted demand for significant community events

Centralised sterile supplies department

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Hutt Hospital’s Emergency Department was part of the redevelopment and extension project in 2012

H U T T VA L L E Y D I S T R I C T H E A LT H B O A R D ( D H B ) Simpson says he is still realising the extent of staff’s achievement and the amazing contribution they have made towards the development.

“Visiting staff from hospitals both here and overseas come to our facility to look at the technological advances we have implemented – that’s when the enormity of what we have done here hits home for me.”

Building out for efficiency and safety In addition to its ambitious Operation Centre program, Hutt Valley DHB has improved its infrastructure through physical expansion. In 2012 Hutt Hospital completed the construction of an emergency department (ED) and theatre redevelopment and extension project. The $80 million project consisted of two parts: a 3,000 square-meter refurbishment to the existing hospital structure,

plus a brand new 6,600 squaremeter building. Along with a new ED containing high-tech features like satellite imaging and ambulatory care, highlights of the project include: · A theatre suite with eight operating theatres · A centralised sterile supplies department · An expanded specialized facility for pre- and post-operative support · An extensive carpark for staff and visitors · A specific area for children called “the tree hutt” in the emergency department and “the tree top” theatre.

Prior to this build out, Hutt Hospital’s suite of four theatres struggled to meet the district’s health targets and its growing demand for surgical services.

With this new expansion, says Simpson, patients and staff alike can

“Visiting staff from hospitals both here and overseas come to our facility to look at the technological advances we have implemented – that’s when the enormity of what we have done here hits home for me” – Russell Simpson, Hutt Valley DHB executive director allied health, scientific and technical w w w. h u t t v a l l e y d h b . o r g . n z

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Patients and staff alike now experience a modern, spacious specialised environment, purpose-fit for the latest developments in health care.

experience a modern, spacious environment, purpose-built for the latest developments in health care. With protected areas and backup utilities built to withstand 156

November 2015

outages and fires, the newly built infrastructure also brought Hutt Hospital’s emergency department and theatre suite in line with new and more stringent earthquake

H E A LT H C A R E

requirements that came into effect following the 2011 Christchurch earthquake.

In store for the future of Hutt Valley Hutt Valley DHB has undergone many exciting changes in the last few years, but there is still more to come. The district welcomed Dr. Ashley Bloomfield on board as CEO in October, marking the first time that Hutt Valley DHB will be led by an experienced clinician. With a background in both medicine and public health, Bloomfield will be well equipped for the challenges of meeting targets and improving the state of wellness in the Hutt Valley.

Hutt Valley DHB will continue to be involved in major collaborations in the near future. Simpson explains that the district will be working on hospital service capacity planning with its DHB neighbours, Wairarapa and Capital & Coast DHBs, which are also based within the greater Wellington region.

In order todevise a more comprehensive health system, the three DHBs will plan on a regional level to help develop a more sustainable model for high quality health care by 2030.

“Planning collaboratively will allow for the creation of both an individual and collective view of options and ways to optimise the use of resources,” he says. “It also allows sharing of tools and processes used for individual DHB planning.”

Both on its own and as an integral part of the larger district health board network, Hutt Valley DHB is well on its way to creating a healthier New Zealand.

Company Information INDUSTRY

Construction/Hospitals HEADQUARTERS

Hutt Valley DHB Pilmuir House Hutt Hospital Campus Lower Hutt Wellington,New Zealand FOUNDED

2001 EMPLOYEES

2,400 BUDGET

$480 million

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