__MAIN_TEXT__

Page 1

WWW.BUSINESSREVIEWAUSTRALIA.COM | July 2015

TAKE A IN THE DATA LAKE TERADATA ANZ GENERAL MANAGER ALEC GARDNER OFFERS EXPERT INSIGHT ON THE

SHIFT FROM STORING INFORMATION IN DATA WAREHOUSES TO THE EMERGENCE OF DATA LAKES

SMART BUILDINGS COMBINE TECHNOLOGY WITH HUMAN INTELLIGENCE TOP 10 BUSINESS SCHOOLS IN AUSTRALIA


EDITOR’S COMMENT

Greetings all! After an exciting month of June filled with several compelling stories and transactions in the business world, we now move on and turn our attention to July. In a nation aspiring to climb the ranks toward becoming one of the world’s technological leaders, we’ll take an in-depth look at an emerging topic of big data, as well as new innovators. Perhaps the best way to store big data in today’s world is through using data lakes, and an interview with Teradata ANZ general manager Alec Gardner explores what makes a data lake so popular and so important in our society. In addition, we’ll examine the new innovation behind smart buildings. This feature breaks down the steps taken to ensure these buildings of the future are connected in an integrated, dynamic and functional way, all while minimising energy cost, supporting an electric grid and reducing the environmental impact. And finally, our Top 10 list features the best institutions in Australia to earn an MBA, based on this year’s QS regional MBA rankings. Although there are several great candidates to chose from, can you guess which school wound up taking the top spot? Enjoy the issue!

Eric Harding Editor eric.harding@businessreviewaustralia.com Twitter: @eharding10

3


CONTENTS FEATURES This month we focus on top-to-bottom leadership in companies throughout Australia.

6 Leadership

Smart Buildings Combine Technology with Human Intelligence

14 Technology

Take a swim in the data lake

24 TOP 10

Top 10 Business Schools in Australia

COMPANY PROFILES MINING

CONSTRUCTION

MANUFACTURING

36 Roy Hill

108 Charter Hall/

158 A.H. Beard

52 Glencore Technology

Watpac 333 George

168 Bombardier

62 Orocobre Limited

Street Project

Transportation New

70 Danakali Limited

116 Colliers

Generation Rollingstock

International

Project

FOOD 78 Charlesworth Nuts 88 Hazeldene’s Chicken Farm

HEALTHCARE 96 HealtheCare

126 Schindler Lifts (Singapore)

ENERGY 136 Horizon Power

SUPPLY CHAIN 148 Damco Cambodia & Vietnam

4

July 2015

78

Hazeldene’s Chicken Farm


108

Charter Hall/Watpac 333 George Street Project

62

Orocobre Limited

136

Horizon Power

158 A.H. Beard

74 Critical Success Solutions 5


LEADERSHIP


SMART BUILDINGS COMBINE TECHNOLOGY WITH HUMAN INTELLIGENCE

THROUGH THE USE OF TECHNOLOGY, SMART BUILDINGS CONNECT THE STRUCTURE ITSELF TO THE FUNCTIONS THAT EXIST IN ORDER TO CONNECT BUILDING SYSTEMS, PEOPLE WITH TECHNOLOGY, THE GLOBAL ENVIRONMENT, THE SMART POWER GRID, THE BOTTOM LINE AND AN INTELLIGENT FUTURE. W R I T T E N B Y: E R I C H A R D I N G


LEADERSHIP TODAY’S BUILDINGS ARE complex combinations of structures, systems and technology. As time has passed, each of these components have been improved and developed, allowing its owners to adjust systems such as lighting, heating and air conditioning like it’s a home entertainment system. Things have changed considerably since the days when these same buildings’ sole purpose was to provide a comfortable space for the people inside. Today, it’s not enough to just have the systems that provide comfort, light and safety. The buildings of the present and future must connect these various parts in an integrated, dynamic and functional way, all while minimizing energy cost, supporting an electric grid and alleviating the environmental impact. Smart buildings use building services that help with its occupant’s productivity in ways such as illumination, thermal comfort, air quality, physical security and sanitation, amongst others at the lowest cost and with a lower environmental impact over its existence. Getting to that point involves the addition of intelligence from the start of the design phase 8

July 2015

A smart building can easily be comp way the internet connects computer through the end of the building’s life cycle. Using information technology to connect a variety of subsystems that normally operate independently, these systems can share information to optimize total building performance. They look beyond just four walls. They are connected to the smart power grid and are controlled by building operators, as its occupants to allow new levels of visibility and valuable information.


pared to the internet, as it connects building subsystems in a similar r networks into one large “supernetwork.” Through the use of technology, the smart building connects the building itself to the functions that exist in order to connect building systems, people with technology, the global environment, the smart power grid, the bottom line and an intelligent future. The next generation of smart building technology In May, Honeywell announced its Command and Control Suite, which

is believed to be the next generation of smart building technology. It basically turned complex facility data into recommendations and easily implemented changes that helped boost business outcomes – lowering costs, minimizing risk and reducing downtime. Using the combination of intelligent automation, advanced analytics and visualization with the simplified user experience of today’s mobile electronics, it links building automation 9


LEADERSHIP

with the enterprise. For example, it can provide a complete view of a connected building’s video feeds, access controls and fire alarms, while taking relevant information from its human resource applications. Using data from each of these different systems can help security personnel keep track of residents and make sure they exit the facility in the event of an evacuation, which will improve employee safety. Pressure to manage costs, risks and energy consumption is pushing commercial building owners and Things have changed considerably since investors to explore how smart sole purpose was to provide a comfortab building technologies can help a company’s triple bottom line of Research. “However, difficulties in people, planet and profits, according integrating data from separate building to a recent report by the financial and automation systems have encumbered professional services firm Jones Lang realising this potential. The usability LaSalle. Investing in this type of smart of facility technologies has been a building technology usually pays persistent challenge as well. To date, for itself within one or two years by success in system performance has delivering operational efficiencies as largely been dependent on the skill well as energy savings. and experience of operators.” “The building data currently Modern buildings are equipped collected in modern facilities with sophisticated control systems, presents a vast opportunity to complex mechanical devices and reduce operations and maintenance a slew of features to improve the costs,” said Benjamin Freas, a safety, comfort and productivity senior research analyst at Navigant of its occupants. Several of these 10

July 2015


SMART BUILDINGS COMBINE TECHNOLOGY WITH HUMANS

e the days when these same buildings’ ble space for the people inside. systems involve machine-tomachine communication, but since the data is general in nature and the communication protocols have been proprietary, the information only flows along certain paths. The smart building requires connectivity between all the equipment and systems in a building.

The most sophisticated software and elaborate hardware in the world would be nothing except wires and transistors without the people who know how to use them most effectively. When you think about it; it’s the people running a smart building that are the most important part of its intelligence. There isn’t much room for strenuous training and steep learning curves in modern-day facility management, with such tight budgets and constrained staff. Rather, a truly smart building provides tools that are designed to improve and enhance the efforts of those who control it. As it evolves, the sharing of information between smart building systems and its components will provide the platform for innovation in improved comfort, safety and more security by using less money, energy and having even less of an environmental impact. “A building’s intelligence is largely influenced by those who operate it and can make the changes necessary to

“A building’s intelligence is largely influenced by those who operate it and can make the changes necessary to improve performance. So enhancing the user experience is imperative.” 11


LEADERSHIP

“Success in system performance has largely been dependent on the skill and experience of operators.� 12

July 2015


improve performance,” said John Rajchert, president of Honeywell Building Solutions. “So enhancing the user experience is imperative. It allows organisations to extract the most value from their technology investment. Like today’s ubiquitous tablet and mobile devices, Command Wall makes connecting with information and others fast and simple.” Helping meet sustainability goals A smart building can easily be compared to the internet, as it connects building subsystems in a similar way the internet connects computer networks into one large “supernetwork.” Its integration of systems can also be used to reduce operating costs in numerous ways, mostly involving optimized operation and increased efficiency. Some of these ways include optimising cooling and ventilation equipment, matching occupancy patterns to energy use, a proactive maintenance of equipment and dynamic power consumption. For years, building management systems have automatically spent just enough energy to heat and cool buildings to meet comfort standards. These energy efficiency actions aid

an organization’s sustainability goals such as tracking and reducing greenhouse gas emissions. However, if the data is trapped within the building management system, high-level executives and decision makers won’t be able to measure it and act accordingly. Although energy use and occupant comfort are crucial to any organisation, and therefore will need a human presence in the decisionmaking, technology will be the key enabler to provide building operators with the tools and information needed to make smart choices. Still, smart buildings go far and away beyond saving energy and helping meet sustainability goals. They also may prolong equipment life and impact the security and safety of both human and capital resources. They are the key component of a future where information, technology and human ingenuity combine to produce the robust, low-carbon economy envisioned for the future. The smart building is at the forefront of this vision, as it provides not only the ceiling overhead, but also the information infrastructure to make an intelligent world truly possible. 13


TECHNOLOGY

T

Inf to

14

July 2015


TAKE A SWIM IN THE DATA LAKE:

formation stored in data lakes allow an organisation capture insight at a relatively low cost, find out how to derive value from it and how to store it long-term once they know it’s value. Written by: Eric Harding


TECHNOLOGY IN TODAY’S ENTERPRISE data world, there’s currently a big shift from data warehouses to the emergence of data lakes. Although data warehouses have been the foundation for business intelligence for the past several decades, data lakes are beginning to make them far less necessary. Information in a data lake—which is a storage area that holds large amounts of raw data in its native format until it is needed—is normally either digital data or data that is relatively new to an organisation. It’s the information an organisation wants to capture at a relatively low cost, find out how to derive value from it and how to store it long term once they know it’s value. The limitation of a data warehouse is that it stores data from various sources in specific structures and categories that dictate the type of analysis possible from it. But this doesn’t mean structured data warehouses are going anywhere. They will still be around to carry out the same tasks they have been doing all along, and will continue to be the downstream system of a data lake. What data lakes bring in their raw, unmuddled format is allow business analysts access to data across different 16

July 2015

With data often so large and comple divisions within their organisation. When new data came along, businesses traditionally had to wait for it to be loaded into the staging layer of the data warehouse, where it would then be presented to them in one form or another. However, this becomes quite time-consuming as well as expensive. “Having (information) landed in a data lake in its raw form is a great opportunity for an analyst to access it


ex, the need to store it cost efficiently became important over the last 10 years. and discover if there’s any insight to it,” said Alec Gardner, general manager at Teradata ANZ. “Traditionally in a data warehouse, finance will have its data set and present it in the way they need to report it. Now, analysts can go to the data lake where they have the raw data, and present it with the initial lens that they want.” The origin of the data lake The idea of getting sourced data and

lending it in its exact form is a principal of data warehousing. However, the idea of data lake came along about 10 years ago alongside the new explosion of digital data. More consumers connecting online and sharing opinions with each other is what has driven the new aspect of a data lake. With data often so large and complex, the need to store it cost efficiently became important within the last 10 years, and Gardner believes it will 17


TECHNOLOGY

Data lake is a storage area that holds large amounts of raw data in its native format until it is needed. 18

July 2015


TA K E A S W I M I N T H E D ATA L A K E

continue to grow exponentially. “Everybody says they want to do it, but there are very few actual referenceable data lake implementations anywhere,” Gardner said. “Although it seems like it would be the archetypal way to use it, people haven’t necessarily given it the governance that it needs. But the over-governance of a data warehouse was one of the problems being solved by the data lake. We went from one extreme to another of people thinking they should move away from having a tightly-governed operational principal being applied to them to having no governance applied whatsoever. People are thinking, ‘It’s cheap, so I can just copy data and copy data,’ but we’ll be going back to the problems

“Having (information) landed in a data lake in its raw form is a great opportunity for an analyst to access it and discover if there’s any insight to it.” - Alec Gardner, General Manager at Teradata ANZ

we created 30 years ago and why we actually invented data warehouses. “It’s not as common as we would be led to believe. Organisations are struggling with it a bit, as they’ve gone through the challenge of looking at it and understanding it. It’s a fairly complex computer system. It’s relatively hard to use compared to other business intelligence and data warehouse systems. It’s in the minority definitely, but we’re seeing a great interest in it from our customer base because of the way our customers approached the problem.” At Teradata, which is a provider of software, hardware and services to help customers get new data and use the data lake, their job is to help their clients with more sophisticated analytics, show them how to store it and find out if there’s value in it. They work very closely with Telco Systems and banking companies to assist them on how to use more sophisticated analytics and show them how to store it, whether it be in a data warehouse or in a data lake, in order to retain it all. The biggest challenge with this, according to Gardner, is understanding it. Although some basic aspects of it can be applied quickly 19


TECHNOLOGY

because it’s still a filing system at its core, it’s not an easy task. “It’s a new technology that requires new skills,” Gardner said. “It’s pretty complicated because you’re dealing with large data sets. You’ve got to land the data, work out how you can structure those files, and then most importantly, how you secure them. Once you’ve created a security model, then you declare how you’re going to 20

July 2015

join data sets and how you’re going to make the user aware of what’s in those data sets. “You’ve got that raw data and you go to that data and decide how you want to join it. You need to know what it is and how it would be joined. The data lake needs to have that information in it. You need to land the raw data and secure it, but you don’t need to give access to secure data. You want to


Although data warehouses have been the foundation for business intelligence for the past several decades, data lakes are beginning to make them far less necessary.

“It’s a new technology that requires new skills. You’ve got to land the data, work out how you can structure those files, and then most importantly, how you secure them.”

create a very lightly integrated view on top. That’s where the data lake should stop; at a very lightly integrated layer. Then you’re able to let your analysts come and play, and you’re able to feed all of your data warehouse systems and other event systems.” Due to the web traffic and digital data they have, online digital businesses were the first to begin using data lakes and were the ones 21


TECHNOLOGY

If analysts aren’t careful, they can create what is known as a data swamp. 22

July 2015


TA K E A S W I M I N T H E D ATA L A K E

who invented the technology that is normally used in the data lake space. In Australia, legislation dictates where the network data needs to be retained because law enforcement agencies want to be able to access the information if they need to. In fact, a law is currently being passed where Telco and internet service providers have to retain all of that data. Because so much of it is online and they have so much of it, financial services must do it as well, according to Gardner. He’s also beginning to see it a lot more data lakes in government work as well as retail. The future of big data In the future, Gardner believes data lakes will be the best way to retain historical data. It’s also prevalent in real-time analytics, such as the information a bank teller has at their disposal when you give them your account number, which has been in place for a long time. “As we get more and more capable of managing more and more realtime analytics, the data lake will become the posterior for landing data that has been streamed through,” Gardner said. “The data

won’t necessarily go into the lake first and then out to the systems, but rather, it will go through the process and then back into the lake. “Imagine it raining at the top of a mountain, and the water filters down into the lake, as opposed to you pumping the lake full of water at the source.” But if analysts aren’t careful, they can also create what is known as a data swamp. When one person needs to access the data and copies it, then someone else comes along to access the same data for a different reason and copies it again, it creates several little “ponds” of data. Therefore, data lakes need an element of human touch. “(Data lake) will become the key use from a technology point of view,” Gardner said. “Unfortunately, not many people have taken a structured approach of how they started the journey. The risk is if you don’t try to keep it simple and not have the loose integration that you start with, then you will end up with people creating all these little ‘ponds.’ It needs an element of being manmade, thus a data reservoir is probably the best analogy.”

23


TOP 10

TOP 10

BUSINESS SCHO IN AUSTRALIA As the fourth most popular MBA destination in the world, these Australian schools are the elite. Written By: Eric Harding


OOLS Expose/Shutterstock.com


TOP 10

26

Month 2014


TOP 10 BUSINESS SCHOOLS IN AUSTRALIA

AUSTRALIA IS THE most popular study destination for a Masters in Business Association (MBA) in AsiaPacific, and the fourth most popular in the world. In the British company Quacquarelli Symonds’ (QS) regional rankings from earlier this year, 12 of the top 30 business institutions (or 40 per cent) representing Asia-Pacific are located in Australia, which is a nine per cent increase from 2013. Australian universities traditionally have high academic reputations. According to Financial Review, Australia has more high-ranking universities under 50-years-old than any country in the world. In addition, nearly every top Aussie institution improved its standing from 2013, despite the fear that the federal government plans to deregulate tuition fees. Eight Australian universities appeared in Times Higher Education top 200 list, as magazine editor Phil Baty said with Australia being the fifth best represented country on the list that it has a “world-class system.” Business schools in Australia regularly outperform many of its nearest neighbors in various MBA rankings even though they’re often grouped in the same region as Asia.

Considering the country’s smaller population compared to the U.S. and some European countries as well as its isolated location, Aussie business schools perform well on an international scale. Its applicants are often attracted to them due to their close distance to rising businesses and financial powers in Asia. The country’s quality of living,` along with its niche for learning the international business language, make it the sixth most popular MBA destination in the world. Below is a list of the top 10 business schools in Australia based on this year’s QS regional MBA rankings.

10. UWA BUSINESS SCHOOL: U N IVER S ITY O F WESTER N AU STRALIA The only business school in Western Australia – and one of only seven in the nation – that is internationally accredited through the European Quality Improvement 27


TOP 10 System (EQUIS) as well as the Association to Advance Collegiate Schools of Business (AACSB). It was awarded five-star ratings in corporate links, size of management faculty, academic qualifications and graduate salaries, which was more than any other business school in Western Australia. Guided by a Business School Board that provides advice on the school’s strategic direction, it has over 5,000 students from more than 62 countries around the world.

9. GRADUATE SCHOOL OF BUSINESS AND LAW: R M IT U N IVER S ITY One of Australia’s original and top educational institutions, Graduate School of Business and Law has produced some of Australia’s most employable graduates. Known throughout the Asia Pacific as a

28

July 2015

leader in business management and law education, the school provides a challenging learning environment, superior resources, a quality teaching staff and motivated co-eds. It is one of six schools under the umbrella of RMIT’s College of Business and has a reputation for excellence in work-relevant education and high-quality research.

8. MACQUARIE GRADUATE SCHOOL OF MANAGEMENT: MACQ UAR I E U N IVER S ITY Sydney’s leading business school and one of the top global business institutions, it is the top ranked school in the world for post-MBA salary increase as well as second for post-MBA salary. Over 80 per cent of MGSM full-time students are employed within three months of graduation, as students benefit from its extensive corporate partnerships


TOP 10 BUSINESS SCHOOLS IN AUSTRALIA

and the opportunity to participate in internships. It recorded the highest average GMAT score (680) of all schools in this list, and also launched a scholarship fund worth nearly US$7 million to encourage female enrollment to reduce Australia’s gender imbalance at the MBA level.

outside the top 20 MBA programs in the Asia-Pacific, it offers students a chance to gain insight into different organisational cultures.

6. UQ BUSINESS SCHOOL: U N IVER S ITY O F Q U EEN S LAN D 7. SYDNEY BUSINESS SCHOOL: U N IVER S ITY O F WO LLO N GO N G Ranked among the top 200 business schools in the world, this institution is designed for individuals seeking to expand their expertise, build their professional excellence or enhance their leadership capabilities.

The school brings together a wealth of international and industry experience, along with a diverse group of students who study in a supported environment. Landing just

Swiftly rising up the ranks as one of the nation’s top MBA programs, UQ Business School probably wouldn’t have even made this list one year ago. Since 2012, it has shot up from 35th into the top 20 in the Asia-Pacific regional MBA rankings, while it was also ranked No. 1 in Australia by The Economist, as the top business school outside of Europe and North America. Located in Brisbane, consultancy and contact research are core values of the school, as its staff has worked with top-tier national and international companies such as BHP Billiton, Coca Cola, Asia Development Bank and Telecom NZ.

29


TOP 10 highest proportion of international students and female students in its 2014 MBA class, the most of any school in this list.

4. LA TROBE BUSINESS SCHOOL: LA TRO B E U N IVER S ITY

5. MONASH BUSINESS SCHOOL: MO NAS H U N IVER S ITY A dynamic and progressive institution that engages in the highest quality of research and education, this globallyfocused school in Melbourne has networks throughout the world. It has achieved the elite “triple crown” accreditation by the Association to Advance Collegiate School of Business (AACSB), the European Quality Improvement Standard (EQUIS) and the Association of MBA’s (AMBA). The program tries to develop innovative thinking capabilities and an awareness of the moral and ethical responsibilities of management as a professional practice. It recorded the 30

July 2015

La Trobe Business School recently launched a “new look” MBA program, and subsequently had the highest score in this top 10 in the employer segment. Ranked among the top five MBA programs in the nation during the 2014 QS MBA rankings, this is the only program in Victoria to receive the highest possible five-star rating over the past three years from the General Management Association of Australia (GMAA). With over 3,000 graduates from more than 100


TOP 10 BUSINESS SCHOOLS IN AUSTRALIA

countries, this program clearly has a global appeal.

3.COLLEGE OF BUSINESS AND ECONOMICS: AU STRALIAN NATIO NAL U N IVER S ITY (AN U ) Located in the nation’s capital city of Canberra, this school stands out in its research of physics, medicine, social sciences and Pacific studies. With its selective approach to accepting students into its MBA program, class sizes are normally small to maximise interaction between the students and staff to create an environment with a focus on small group presentation learning. The program is also designed to be flexible enough for students to finish the program as fast or slow as they like. ANU has

attracted high-quality students since its establishment in 1994, as many of its graduates currently hold leadership positions in corporate and government offices both internationally and in Australia.

31


TOP 10

Expose/Shutterstock.com 32

July 2015


2. AGSM MBA: U N IVER S ITY N EW O F SO UTH WALES The Australian Graduate School of Management (AGSM) offers global top-tier general management, executive and leadership development programs. Each program is known for its unique student experience, as AGSM has long been established as the premiere Australian business education and leadership development institution in the Asia-Pacific region. Located in Sydney, the AGSM MBA program provides a world-class business education and several business networking opportunities that will help you achieve your career and personal goals. The program is ranked in the top 20 of those outside of the U.S., and was the first in Australia to be granted AACBS Accreditation.

33


TOP 10

1.MELBOURNE BUSINESS SCHOOL: TH E U N IVER S ITY O F M ELBO U R N E Back in 1965, Melbourne Business School became the first institution to award an MBA in Australia. Fifty years later, it achieved the highest score of the new academic segment of this year’s MBA rankings of these top 10. MBS has been ranked in the top 100 MBAs by Financial Times every year since 2005, including No. 3 in 2015, and was named top 40 in The Economist and placed second among the best business schools in the Asia-Pacific. It was also named the No. 1 executive education provider in the Asia-Pacific by Financial Times in 2014, and was No. 1 in the Asia-Pacific by employers of MBA graduates in the 2012-13 QS Top Business Schools Report. In today’s uncertain world, MBS has graduate programs that meet the needs of business professionals at all stages of their career.

Expose/Shutterstock.com 34 Month 2014


35


Roy Hill:

Inside the Making of Roy Hill

The $10 billion project will be the largest single feed proce plant in the Pilbara region of Western Australia, providing of economic and social benefits to the country. Barry Fitzg reveals the inner workings of the project as well as the com legacy for the future. Written by: Robert Spence Produced by: Vince Kielty


l

essing g a wealth gerald mpany’s


ROY HILL

T

he long awaited Roy Hill project in the Pilbara region of Western Australia is finally coming to fruition. Representing the next era in iron ore mining, the $10 billion project is expected to unlock a treasure trove of iron ore— 55 million tons per year—through an integrated mine, rail and port operation, while providing significant economic and social benefits in the process. The Roy Hill operation is scheduled to load its first shipment of iron ore for export later this year. The Inner Workings The goal for Roy Hill is to develop 38

July 2014

a vertically integrated pit-to-port business strategy utilizing a mine, rail and port system to efficiently mine, transport and export iron ore. Roy Hill’s independently owned and operated railway is a 344km standard gauge, single line, heavy haul railway built to transport 55 million tons of iron ore from the Roy Hill Mine to the dedicated Port stockyard facility, in the Boodarie Industrial Estate south of Port Hedland. “Five ore trains per day will operate from the Roy Hill Mine, each consisting of two diesel electric locomotives hauling 232 ore


MINING

cars with a total payload of 31,132 tons of ore,” said Roy Hill CEO, Barry Fitzgerald. “Due to the undulating nature of the terrain to the north of the mine, for the first 30 kilometres of the journey to Port Hedland, each train will initially be assisted by rear located, manned banker locomotives.” The train system will include a wide array of state-of-theart technology, including a communications-based automatic train protection system that will provide improved safety for all track related activities and increased operational efficiencies.

“The adoption of this full vehicle tracking communication based technology is the first of its kind to be used in Australia and will set new benchmarks for iron ore railways in the Pilbara,” said Fitzgerald. After transportation via rail, Roy Hill will then export shipments through its world-class iron ore port facility at Port Hedland. The facility is capable of receiving, stockpiling, screening and exporting 55 million tons of iron ore, including the capacity to store more than 2.3 million tons. The company will be controlling all of this through its Remote w w w. r o y h i l l . c o m . a u

39


SUPPLIER PROFILE

WSP | Parsons Brinckerhoff is one of the world’s leading engineering and professional services consulting firms. We provide services to a broad range of government and private clients in both the economic and social infrastructure sectors. Our expertise includes full engineering services, environmental services, urban planning, architecture, advisory and programme and project management services. We have approximately 31,000 employees in more than 500 offices across 39 countries worldwide. Our Resources team draws together the expertise of our global business with a depth of skills, experience and resources that are seamlessly integrated to achieve your project’s vision. In addition to a wealth of experience delivering engineering solutions to the resources sector, we can provide tailored or fully integrated project, engineering, procurement, construction, contracts, commercial and planning management services. We are leading the way in providing effective project management services for clients undertaking major projects using an Engineering, Procurement and Construction (EPC) form of contract. Our core values embed integrity, innovation, team work, and sustainability in everything we do. Our organisation is committed to providing a safe environment for our employees and those we work with. We have world class SHEQ processes and systems enabling us to effectively manage major projects and rapidly respond to the dynamic environment with effective risk management solutions. This combined strength and our commitment to meeting our clients’ needs to get their products to market, position us with the skills, personnel, and experience needed for mining projects of virtually any size and complexity. Websites: www.wspgroup.com | www.pbworld.com


ROY HILL Operational Centre (ROC) in Perth. “The amalgamation of these business functions into a truly vertically integrated business provides a coordinated and integrated approach to the planning, operation and overall management of our corporate, mining, processing, rail and port operations,” said Fitzgerald. “The co-location of the corporate headquarters and ROC provides us with the ability to seamlessly integrate the operations, marketing and corporate services functions from end to end.” The ROC will consist of a demand chain team that is responsible for the operational planning, scheduling and execution of production, maintenance and supply activities across all areas of operations. Their focus will be collecting and validating data, reporting it in real-

MINING

time to be used in operational decision making. “The ROC drives productivity and continuous improvement across the business, by focusing on how the individual functions of the business —operations, marketing and corporate—operate together most effectively as a whole,” said Fitzgerald. “This approach ensures that the business is maximizing throughput and quality conformance, as well as managing variation to effectively minimize operating costs.” Dream Team Along with developing the next generation of mining operations, Roy Hill intends on developing the next generation of employees. “We want to be a knowledgebased organization with a focus on innovative thinking that helps

“The Remote Operations Centre drives productivity and continuous improvement across the business, by focusing on how the individual functions of the business —operations, marketing and corporate—operate together most effectively as a whole.” – Barry Fitzgerald, CEO w w w. r o y h i l l . c o m . a u

43


Powering Australia’s most visionary resource project The development of the Roy Hill Project is world-class, and Alinta Energy is proud to power the project that will energise Western Australia’s resource sector now and into the future.

At Alinta Energy, our challenge is to make energy more affordable, and we are excited to build on our strong history in WA by bringing a secure and competitive power solution to the Roy Hill Project. To supply the full power requirements of the Roy Hill Mine, Alinta Energy successfully completed the construction of a new high-voltage 121km transmission line from its Newman Power Station to the Roy Hill Mine – demonstrating a tailored approach to providing end-to-end power solutions.


Powering the Pilbara into the future The Roy Hill Project has opened doors for futher investment in power supply solutions in the Pilbara Region. With a diverse portfolio of assets that generates, distributes and retails energy, we are committed to continuing to deliver reliable energy solutions to Pilbara customers.

13 13 58

alintaenergy.com.au

Like us on Facebook facebook.com/alintaenergy

Follow us on Twitter twitter.com/alintaenergy


SUPPLIER PROFILE

Alinta Energy has an established history in the Pilbara region through operation of the gasfired Newman and Port Hedland Power Stations since 2004. Alinta Energy is proud to build upon this history by supplying the full power requirements of the world class Roy Hill Mine under a long-term power purchase agreement (PPA). Demonstrating our tailored approach to providing end-to-end power solutions, Alinta Energy successfully completed the construction and commissioning of a new 121km 220kV transmission line from Alinta Energy’s Newman Power Station to the Roy Hill Mine. In conjunction with the transmission line development, Alinta Energy also constructed a 6MW diesel power station at the Roy Hill Mine site as part of this project. The new transmission line infrastructure and diesel power station are both owned and operated by Alinta Energy. The project was delivered ahead of schedule and within budget. Construction of the project was approximately 12 months in duration after almost 18 months of extensive planning activities, encompassing permitting and tenure associated with the transmission line build. Alinta Energy recorded no lost time injuries throughout the 430,000 hours worked on the construction of the project, highlighting the strong safety performance of both our employees and contractors. Successful completion of the project included 23 major crossings of both public and private roads, high voltage infrastructure and rail. Alinta Energy consulted closely with key government stakeholders and landowners in order to obtain the necessary approvals in a very short timeframe for a project of this nature. Close collaboration with the Roy Hill Project delivery team, during both planning and construction phases, was also vital to the overall success of the project. “As gas fired generation has a significantly lower cost than diesel, the construction of the line not only brings a reliable, but also a competitive solution to additional customers in the region”, said Alinta Energy Executive Director for Power Generation, Ken Woolley. “The costs of operating in the Pilbara are high and energy is a significant proportion of these costs. Enabling the region’s commercial contributors to operate more efficiently maximises their profitability and, therefore, sustainability in the region. Alinta Energy’s successful completion of the transmission line creates exciting opportunities for additional customers in the Pilbara region who are seeking competitive and reliable power solutions, beginning with Roy Hill”, said Mr Woolley. Websites: www.alintaenergy.com.au


ROY HILL drive productivity and business improvements, so that we continue to deliver what we say we will deliver,” said Fitzgerald. “We are creating an organization that is free of bureaucracy, where efficiency through streamlined processes drives high performance and delivers cost effective, fit for purpose outcomes.” The company aims to cultivate a work environment that is conducive to creativity and collaboration, where people actively contribute and realize their full potential. “We want to cultivate a great work environment for our employees—a place where people are engaged and committed to achieving success. We want to be an organization where people feel proud about what they’ve done and about working for Roy Hill.”

MINING

To ensure employees are properly trained and updated on new safety precautions, the company implements a wide range of training programs for new and old employees, as well as unique initiatives to help them get acclimated with the company. “We implement a range of training for our people starting with the induction training when they first join to introduce them to the vision, and values of the company and the behaviours we expect from our people. We run regular safety and operational capability and accreditation training and all staff attend a cultural awareness training program that is run in collaboration with the three traditional owner groups whose country the project operates in – the Nyiparrli, Palyku and Kariyarra people.”

“We want to be an organization where people feel proud about what they’ve done and about working for Roy Hill.” – Barry Fitzgerald, CEO

w w w. r o y h i l l . c o m . a u

47


// U N R I VA L L E D PA R T N E R S H I P

The Hitachi EH5000AC-3 mining truck and EX8000-6 backhoe excavator. From the factory to the pit, Hitachi’s ultra-class hydraulic excavators and electric drive mining trucks are engineered to maximise the productivity of mining operations. Our flagship machines deliver unmatched performance and reliability when it comes to loading and haulage. The most powerful and productive combination yet.

Fleet Management System


ROY HILL Leaving A Legacy Another reason for the significance of the Roy Hill project is the immense economic and social benefits it brings to Australia. Construction of the massive project, including railway and port facilities, has created around 5,600 jobs at its peak, and ongoing operations will require 2,000 workers. The project has generated more than 39,000 direct and indirect jobs, including 600 people currently working directly for Roy Hill, which will increase to more than 2,000 when the project reaches full production.

MINING

Another unique aspect of the Roy Hill project is their approach to reducing their environmental footprint. According to Fitzgerald, Roy Hill already has plans in place for rehabilitation and mine reclamation for the project. “The nature of the Roy Hill deposit means we will be mining from multiple shallow pits, this allows us to progressively backfill mined pits using the overburden waste material being removed as a result of mining from each pit. These mined out pits will then be rehabilitated using previously removed original topsoil, which facilitates better growth of

SUPPLIER PROFILE

Hitachi Construction Machinery (Australia) Pty Ltd (HCA) is a subsidiary of Hitachi Construction Machinery Co., Ltd. (HCM). Since the establishment of our parent company, HCM in 1949, it has evolved into a leading global manufacturer of Hitachi mining equipment, including both AC Drive mining trucks and hydraulic mining excavators. We are part of the global and diversified Hitachi Group, one of the world’s largest companies and leading manufacturer of new technologies across a range of industries—including consumer electronics, automotive and transportation systems, information and telecommunications, and power generation. At HCA, we deliver comprehensive sales, service and parts support to Australian customers across the mining, construction, quarry, forestry, material handling and recycling industries through a wholly-owned national branch network. We are the exclusive distributors of Hitachi, Bell and John Deere products in Australia—three of the most renowned and innovative Original Equipment Manufacturer (OEM) brands in the world. Website:

w w w. r o y h i l l . c o m . a u

49


ROY HILL indigenous flora. There is a twofold benefit to this rehabilitation method, it considerably reduces waste removal costs through shorter haul distances, but also once mining has been completed, we will have returned the landscape to its natural state leaving very little evidence of mining activities.” Roy Hill also plans to go the extra mile in terms of corporate social responsibility. In accordance with its values, the company is actively seeking to go beyond just the Roy Hill

Project to leave a lasting legacy in the communities in which it operates. “Our plan for leaving a positive legacy in the communities in which we operate is unique to the approach from others in the industry,” said Fitzgerald. “We have established the Roy Hill Community Foundation, a charitable trust established to focus on delivering education, training and employment, community development, business development and culture and arts programs to these communities.”

The perfect solution for challenges of any size LinaClass® SLO 10.5m long x 5m wide, the worlds largest single deck banana screen

Schenck Process solutions prevail where others give up. Our products are durable and extremely reliable with very high availability rates under the most arduous conditions. Whether large lumps or the finest grain, wet or dry and irrespective of whether processing iron ore, gold, bauxite, coal, copper, oil sands or aggregates – vibratory equipment supplied by Schenck Process can deal with all types of bulk materials. Our screening media applications work in harmony with our world class vibrating screens. If you have a screening application we have the products, innovation and know how to provide you with the optimal solution.

Proud to be supplier of choice for vibrating screens, feeders and train load out equipment for the Roy Hill Project. Schenck Process Australia Pty Ltd Ground Floor 65 Epping Road North Ryde NSW 2113, Australia

T 1300 724 362 T + 61 2 9886 6800 sales@schenckprocess.com.au www.schenckprocess.com


MINING

Fitzgerald concludes, “The difference with the Roy Hill Community Foundation is that we have invited our contractors, business partners and suppliers working on the project to join us in leaving a lasting legacy in the Pilbara, by making monetary or in kind donations to the foundation. We believe that by working in partnership, we can make a significant difference by maximizing opportunities and addressing community issues that companies may not have the resources or expertise to tackle on their own. We have also introduced a high level of governance with our Foundation partner Samsung C&T and our platinum sponsors, Downer EDI, National Australia Bank and Hitachi having a direct influence on the programs the Roy Hill Community Foundation will implement.”

Company Information INDUSTRY

Mining HEADQUARTERS

Perth, Western Australia, Australia EMPLOYEES

Approx. 2000 at full production PRODUCTS/ SERVICES The Roy Hill Project is a 55 million ton per annum (Mtpa) iron ore mining, rail and port project being developed in West Australia’s Pilbara region. Situated approximately 115 kilometers north of Newman, Roy Hill is a world-class, low phosphorus, Marra Mamba iron ore deposit located in the Pilbara—one of the world’s premier iron ore provinces— and the only independent iron ore project with West Australian majority ownership.

w w w. r o y h i l l . c o m . a u

51


Glencore:

Enhancing Processes in the Mining Industry

Glencore Technology’s Chief Technology Officer Reinhar Viljoen discusses the importance of collaboration in the mining industry and opens up about the importance of branding and marketing Written by: Robert Spence Produced by: Vince Kielty


rdt


GLENCORE

IsaKidd robotic CSM

A

s one of the largest commodity traders and mining companies in the world, Swiss-based Glencore has maintained a rich lineage of innovative technology through its existence in the mining sector. The company has leveraged its experience and knowledge from its own operational sites to develop and market new solutions to meet the mining industry’s evolving demands. Their competitive advantage for the last 30 years has been 54

July 2015

Glencore Technology. Spawned from the merger with Xstrata, Glencore Technology continues to be a dominant player in marketing technologies for the metals and mineral processing industries. Industry experts Glencore Technology specializes in developing and marketing supportive technologies for the mineral processing and metals smelting and refining industries. The company has developed proven technologies such as


MINING

ISASMELT and IsaKidd, which are patented processes widely used in the smelting, electrowinning and copper refining industry today. Additional technologies include IsaMill, a fine and mainstream grinding technology, the Jameson Cell flotation technology and the Albion Process leaching technology. “We’ve initially developed specific copper processing technology,” said Reinhardt Viljoen, Glencore Technology’s Chief Technology Officer. “However, we’re now also involved in the broader design of smelters and refineries and our technology is applicable to other base metals like zinc, lead, nickel, etc. Our technology has also delivered improved processing performance in the precious metal industry, with the gold and platinum industry specifically applying Glencore Technology’s IsaMill and Albion Process Technology.” In terms of supporting technologies for clients, Glencore Technology has designed and developed the ZipaTank™. According to Viljoen, The ZipaTank is an innovative approach to

slurry storage and leaching tanks that incorporates modular components and mechanical joins to provide all the benefits of a traditional welded tank, but with lower costs, reduced installation times and far greater flexibility. “The tank is mechanically bolted. Anyone with a minimal amount of skill and supervision can bolt it together. Its scalability makes it very exciting for clients as it can accommodate most projects and even be reused for other projects.” In addition, Glencore Technology has developed the HyperSparge™, a proven and cost effective system for delivering air, oxygen or other process gases into tanks or vessels for leaching or oxidation processes. “A lot of these technologies started off from issues we experienced in our copper and zinc operations,” said Viljoen. The key ingredient For Glencore Technology, innovation starts with collaboration. “Here in Australia, and all across the world, collaboration is a key ingredient to being innovative.

w w w . g l e n c o r e t e c h n o l o g y. c o m . a u

55


Specialists in design, fabrication, welding and installation of Carbon Steel, Stainless Steel & Specialty Alloy Pressure Equipment, including:

www.nrgpiping.com.au

• Shop Pipe Spooling • Pressure Vessels • Pipe Supports and Structures • Field Welding and Mechanical Installation • Stainless Steel; Austenitic, Duplex and Super Duplex • Alloys; Chromoly, Monel, Hastelloy and Titanium • Carbon Steels; Standard, Low and High Temperature

Phone: +61 7 3807 1119 | Fax: +61 7 3807 9722 | Email: sales@nrgpiping.com.au


GLENCORE

MINING

We have a very supportive and collaborative group here at Glencore Technology and everyone brings something to the table,” said Viljoen. Collaboration helps Glencore Technology continuously find new ways of identifying and developing technologies to improve processing in the mining industry as well maintaining a wide range of existing applications in the mining industry. Along with working internally with Glencore operations, Glencore Technology partners with other companies to collaborate in building innovative technologies that improve processing. For example Netsch

GmbH, Glencore Technology’s partner in the development of the IsaMill Technology. “Once we identify a need, we run a very lean operation. We know what we’re good at and we stick with it. We excel at commercializing technology and identifying needs. We work with the universities as well carrying out our own research and design to take those ideas to the next level in a very functional and commercial way,” said Viljoen. “We take great pride in developing processes that are operationally proven and that deliver value to our customers

SUPPLIER PROFILE NRG Piping Pty Ltd is a forward thinking leading company with an enviable reputation for quality and reliability in the design, fabrication, installation and maintenance from heavy specialty metals. With proven quality management systems that are certified to ISO9001:2008 and industry qualified management and personnel, NRG has over 25 years’ experience offering a range of engineering project services nationally and internationally specialising in Oil and Gas, Mining, Power, Water Treatment & Petrochemical industries. NRG offers project dedicated off site manufacturing facilities in conjunction with onsite installation services where our clients are guaranteed capacity and quality ensuring a safe, efficient, cost effective engineering service to your project delivering profits to your bottom line.

Website: www.nrgpiping.com.au w w w . g l e n c o r e t e c h n o l o g y. c o m . a u

57


Skids, Test Rigs and Wear Parts for the Mining Industry Automated Systems and Equipment CNC Machining and Fabrication Controls and Systems Integration Project Management

DESIGN & MANUFACTURING ENGINEERS

Est. 1962

J C Smale is a diversified applied technology company that offers special industrial production, materials handling and processing systems. All J C Smale special industrial plant and equipment is designed, built, installed and commissioned specifically to customer requirements. J C Smale also provides on site services for retrofit, rework and upgrade to customers’ existing plant and equipment.

We specialize in:  PU LINED, NI PLATED, RUBBER LINED, HARDOX & STAINLESS STEEL COMPONENTS FOR THE MINING INDUSTRY - WORLDWIDE  PRODUCTION PLANT & EQUIPMENT  ROBOT SYSTEMS  TEST RIGS, MATERIALS HANDLING SYSTEMS  COMPLETE ELECTRICAL CONTROL SYSTEMS Industries serviced: mining, brick, light rail, and paint.

Proud Supply Chain Partner of Glencore Technology for Over 20 Years

Turnkey Manufacturing Technologies 9-23 Commercial Rd, Notting Hill, Vic 3168, Australia Ph: +61 3 9544 7188 Fax: +61 3 9543 7927 Email: jcs@jcsmale.com No 19 Jalan Bukit 5 Bandar Seri Alam, Malaysia

www.jcsmale.com


GLENCORE

MINING

sustainably, such as our fine grinding processes that give mining operations the ability to liberate more of their valuable minerals.” According to Viljoen, collaboration doesn’t always create innovation; it has to be driven by the needs of the industry and operations. “We’re heavily driven by our internal Glencore operations to provide them with the expertise we have, and present potential opportunities commercially as we identify them. The mining industry is very conservative. Productivity is a key focus and you need to ensure you’re responding to the needs of

the operational guys. “With the introduction of automation technology, advanced process controls and simplicity of operations will become a big factor in coming years. Automation is complicated but new technologies will simplify the process,” said Viljoen. “Equipment design needs to be very simple but robust. To maximize productivity, the need is to be innovative around designing equipment and running it with minimal attention.” In addition, the company continuously strives to find new and more efficient ways of doing things,

SUPPLIER PROFILE Employees: 58 / Established: 1962 Industry: JCSmale is a leading engineering and design company servicing a diverse range of industries including Heavy Clay, Mining, Automotive, Light Rail, Adhesives, Paint and Plasterboard Services: J C Smale is a diversified applied technology company that offers innovative equipment design for automated solutions along with mechanical, electrical and general engineering services. For over 20 years JCSmale is a key manufacturing partner with Glencore Technologies on IsaMill and Jameson Cell. Ongoing Projects: • PU Lined, Ni Plated, Rubber Lined, Hardox and Stainless Steel components for the mining Industry - World Wide • Robotic Handling System Queensland Australia • Robotic Handlings Systems Perth Australia • Robotic Handlings System South Africa • Paint Dispersion Equipment Queensland Australia • Paint Dispersion Equipment Melbourne Australia Management: Ken Smale - Managing Director / Ross Smale - Engineer - Electrical / Colin Smale - Engineer – Applications / Gordon Smale – Manufacturing Manager / Ron Hill – Group Financial Controller Website: www.jcsmale.com

w w w . g l e n c o r e t e c h n o l o g y. c o m . a u

59


A world that lasts forever Outokumpu is a global leader in a wide range of high performance stainless steels, with manufacturing plants and sales companies located throughout the world.

P: 61 7 3267 7266 | E: ken.hayes@outokumpu.com

even if it takes them outside the realm of the mining sector. “We’re continuously looking for other applications in the mining industry or even if it applies outside the industry. We are always looking for new ideas in terms of solving issues that come up within those disciplines – grinding, flotation, smelting and refining,” said Viljoen. Branding One of the most underrated aspects of the mining industry is 60

July 2015

www.outokumpu.com/australia

branding. For Glencore Technology it is especially important. “You miss opportunities if you don’t. Being active in the market and letting people know what your capabilities are is extremely important, especially if you want to grow. During the mining boom you could get away with a passive approach. You can’t do that now. Branding yourself is very important and we actively strive to do just that,” said Viljoen. “With the change in the mining industry, and the mergers, there


GLENCORE

MINING

has been a lot of change in our structure. As a result, our presence in the market as Glencore Technology has been more of a gradual change. One of my key focuses as Chief Technology Officer is to get our branding well established.” According to Viljoen, forming a presence in the market is an important step in growing as a company as well as delivering on your promise. “We’re motivated by continuous improvements. We maintain long-term relationships with our all our customers to ensure we’re delivering on the promises we’ve made. For us, client feedback is extremely important and these relationships help us to leverage their opinion into making advancements. A key part of our business is making improvements around our customers.”

Company Information INDUSTRY

Mining HEADQUARTERS

Brisbane, Queensland, Australia FOUNDED

1984 EMPLOYEES

85 PRODUCTS/ SERVICES Glencore Technology develops, markets and supports technologies for the global mineral processing and metals smelting and refining industries. These technologies include ISASMELT™ and ISACONVERT™ smelting processes, BBOC™ precious metal refining, IsaMill™ fine-grind and mainstream grinding technology, IsaKidd electrowinning and electrorefining technology, Jameson Cell flotation technology and the Albion Process oxidative leaching technology.

Jameson Cell w w w . g l e n c o r e t e c h n o l o g y. c o m . a u

61


Orocobre:

Orocobre Surges to the Top of the Industry Orocobre’s flagship Olaroz Lithium project is the first major new brine lithium project in over 20 years Written by: Eric Harding Produced by: Nathan Zeke


OROCOBRE

Olaroz Opening Ceremony

A

fter seven years of planning, developing and constructing, Orocobre’s Salar de Olaroz facility is now ramping up production of high quality lithium carbonate. Their goal is to reach nameplate capacity of 17,500tpa by the fourth quarter of 2015. The enormity of the Olaroz resource, combined with the sustainable practices of the business, support the potential for expansion plans and additional stage developments to occur in line with a growing lithium market demand. Orocobre’s flagship Olaroz Lithium project is the first major new brine lithium project in over 20 years and is 64

July 2015

based on a world-class resource. “We have a company which operates based on principals defined and agreed by our management,” said Richard Seville, Orocobre’s Managing Director and CEO. “We have a sense of ownership of what we do, and have the ability to make and take the opportunity.” Building Olaroz Located in the elevated Puna region of Argentina’s north-west province Jujuy, Olaroz is an area of 63,000 hectares of tenements over a salt lake containing high amounts of lithium and potash in brine. The


MINING

Accepting the 2014 Mining Argentina Award

project is well served by surrounding key infrastructure, including sealed roads, high voltage electricity, gas pipelines, and rail access. Construction on the estimated US$229 million project began late in November 2012, with construction taking about 18 months. Approximately 150 employees work on site, and while construction of the facility has been completed, there is some final rectification work being conducted on the lithium carbonate production plant to allow the achievement of the nameplate production rate. The facility began as a joint venture

project built in partnership with Japanese trading giant Toyota Tsusho Corporation (TTC), with the initial agreement beginning in January 2010 and the partnership agreement signed in October 2012. The agreement gave both sides a detailed financing plan set up to secure TTC’s direct participation and support for funding the Olaroz project. Since then, the two companies have worked closely together to advance the project. In a business where product quality is most important, TTC’s investment provided a strong endorsement of the quality of the Olaroz resource, and the high purity w w w. rocobre.com/

65


OROCOBRE

MIXING SOLUTIONS FOR LITHIUM PROCESSING (Li2CO3) Design of complete agitated process units n Scale-up 50 litres → to production size directly n Product Quality high purity & perfect crystal size n CO Yield close to 100% 2 n

contact: minerals@ekato.com, +49 (0) 7621 290, www.ekato.com

“We have a company which operates based on principals defined and agreed by our management. We have a sense of ownership on what we do, and have the ability to make and take the opportunity.” – Richard Seville, Orocobre managing director and CEO


MINING

battery grade product produced at the Olaroz Facility.

boron minerals and refined chemicals producer that has been in operation for over 50 years. Partnerships Borax Argentina is one of only a Prior to receiving final government few major borate deposits globally approval to commence construction currently in production. of the project, Orocobre entered into These operations produce a an agreement with Jujuy Energia y wide variety of boron chemical Mineria Sociedad del Estado (JEMSE). products including boric acid, borax A mining investment company owned decahydrate, borax pentahydrate, by the Jujuy government, JEMSE anhydrous borax and boroglas holds an equity interest in the project, from concentrates and ulexite and provided assistance during the minerals carted from the mines and development of Olaroz. concentrators. Borax Argentina The final government approval, operates three open pit mines, along with the JEMSE agreement, a borax decahydrate plant in cleared the way to finalise the Tincalayu and concentration plants project construction financing in Sijes and Porvenir, in addition to package with TTC, as well as Mizuho refinery facilities at Campo Quijano. Corporate Bank and Japanese The mineral operations state-owned Japan Oil, Gas and produce ulexite (Porvenir) which Metals National Corp (JOGMEC). is predominantly used in the “TTC is our equity partner and manuufacturing of boric acid, sales agent, they were able to hydroboracite (Sijes) a calcium procure low cost project debt from and magnesium borate provides Japanese banks supported by specific benefits for agriculture, JOGMEC,” said Seville. “They were a ceramic and oil and gas applications key part of getting this project done.” and colemanite (Sijes) which is Additional assets sold predominantly into ceramic Another major operation owned by manufacturing operations. Orocobre is Borax Argentina, which The considerable deposits is a long established Argentine at Diablillos and Ratones are w w w. rocobre.com/

67


OROCOBRE

Lithium Brine Pumping Into Evaporation Pond

essentially undeveloped and with the exception of the Porvenir mine located in Jujuy, each of Borax Argentina’s operations are located in Salta Province in northern Argentina. “We purchased these run down assets from Rio Tinto in 2012 and are in the process of improving them with modest capital and changes in culture,” said Seville. “However, the big change will be when we do a major expansion of the Borax operations, which will then be followed by minerals and boric acid.” As part of the initiatives being pursued at Borax Argentina, the company is in the process of re-modeling the deposits and undertaking a review into the 68

July 2015

exploration potential. Demand for boron products remains strong both in the region and around the world. Presently, the main geographic market for Borax Argentina is Brazil, along with Argentina to a lesser extent. Brazil’s economy is among the fastest growing in the world, a trend that is expected to continue, and is fully dependent on imports for its extensive borate needs. Demand is closely tied to the strength of Brazil’s glass, ceramics, construction and agricultural sectors. Major player in the sector In addition to favourable growth trends of the regional segments currently served by Borax Argentina, Orocobre believes there are a vast number of opportunities for Borax


MINING

Argentina to expand into new markets and to develop and supply new products. Borax Argentina has a very high profile in Argentina, in Salta province especially, as it has a strong history of excellent environmental and safety records along with healthy community relations. Safety is a key focus at Orocobre not only encompassing implementation and adherence to procedures and safety training programs but also having officers on shift to reinforce correct behaviours and ensure compliance with procedures. “Safety, environment and shared value are key areas for us,” said Seville. “In safety, we aim for zero accidents as stated in our slogan, “Por nosotros, por nuestras familias, zero accidentes!” “We respect the environment in which we operate as evidenced by our approach to construction, which maximises positive local economic impact and benefits to local communities.” The Olaroz Lithium Facility recently received accreditation from Instituto Argentino de Normalizaciion y Certificacion (IRAM) for quality management, environmental management, as well as safety and occupational healthcare management. Seville strongly believes there are bright days ahead for Orocobre, and expects to see considerable growth within the next year or two. “I see us as a major player in the sector, respected by customers and competitors for the way we run our business,” he said.

Company Information INDUSTRY

Mining HEADQUARTERS

Milton, QLD, Australia FOUNDED

2005 EMPLOYEES

200 REVENUE

$118 million (projected @ nameplate capacity) PRODUCTS/ SERVICES

Orocobre Ltd is building a substantial Argentinian-based industrial chemicals and minerals company through the construction and operation of its portfolio of lithium, potash and boron projects and facilities.

w w w. rocobre.com/

69


Danakali Ltd:

The continued advancemen the Colluli Potash Project

CEO and Managing Director Paul Donaldson discusses c progress and future plans.

Written by: Eric Harding Produced by: Vince Kielty Interviewed by: Paul Donald


nt of

current

dson


D A N A K A L I LT D

High purity potassium sulphate sample generated from Colluli pilot tests

F

ormerly South Boulder Mines, which was established in 2003, Danakali Limited is an ASXlisted resources company engaged in developing the world-class Colluli Potash Project in the Danakil region of East Africa. Containing over one billion tons of potassium-bearing salts, the 200-square kilometre resource is one of the largest and most accessible potash deposits in the world. The project The Colluli Potash Project is whollyowned by the Colluli Mining Share Company, which is a 50/50 joint 72

July 2015

venture between South Boulder Mines and the Eritrean National Mining Company. Since drilling commenced in 2010, South Boulder Mines has made significant strides in progressing the Colluli Potash Project, completing an economically robust prefeasibility study for the production of sulphate of potash (SOP) in February 2015. A definitive feasibility study is now underway and expected to be completed in September 2015. “By working through a series of studies, and fully assessing the composition of the Colluli resource, we’ve been able to identify the best


MINING

Environmental Baseline Studies for the Colluli Project are well advanced

development path” said Donaldson. “As the studies reach their conclusion, we will work with our Joint Venture partners and focus on securing the funding and human resource to successfully transition from explorer to operator,” said Donaldson.

substitutable agricultural commodity which provides potassium crop health fits into this category. Colluli is a large resource, in close proximity to the coast, is highly accessible, is geographically favourable relative to key growth markets, and is capable of making The advantages a premium potash type with The world’s population is growing exceptional quality. Prefeasibility at approximately 80 million people studies indicate the lowest capital per annum. To feed an additional 2.3 intensity and operating costs billion people by 2050, agricultural relative to all advanced SOP yields are required to increase by projects globally. almost 70%. Fertiliser consumption Colluli is geographically advanced; must grow to meet this objective, located on the doorstep of the key and potash, an essential, nongrowth economies of the future. w w w. d a n a k a l i . c o m

73


Drilling Operations at the Colluli resource


D A N A K A L I LT D Potassium sulphate (SOP) is a geologically scarce resource with strong demand growth drivers, and a favourable agriculture commodity of the future. Capital Intensity and Operating Costs Low capital intensity and operating costs are achieved as a result of the extraction of the potassium salts in solid form. All primary producers of SOP commence with potassium rich brine which requires large amounts of evaporation, and a large area of evaporation ponds to generate a harvest salt for further processing. Colluli has the unique advantage of starting with salts in solid form, which minimises both footprint size and capital investment. The favourable combination of salts also gives a high potassium yield which lowers the overall operating costs.

MINING

also has huge upside potential with appreciable volumes of rocksalt, magnesium chloride and gypsum also present in the resource. “The potassium salt diversity of the Colluli resource cannot be matched by any other potash basin in the world ,” Donaldson added. “We have a massive resource, the ability to diversify potash type, are close to the coast and key markets, and exposure to huge upside potential with a suite of non-potassium salts that have well established markets .” “There are only three major primary producers in the world making potassium sulphate. The market dynamics are highly favorable for us.”

Location Being close to the coast makes the Colluli resource one of the most accessible potash deposits in the world. “Logistically, Colluli is simple relative to many planned greenfield Diversity and marketability developments, and the East Africa The diversity if potassium bearing location is highly advantageous salts within the resource allows Colluli relative to key potential markets in to produce a range of potash fertiliser the Middle East, India, East Asia and types including potassium sulphate, Africa” said Donaldson. potassium magnesium sulphate and potassium chloride. In addition, it w w w. d a n a k a l i . c o m

75


D A N A K A L I LT D

Samples for shipping to the Saskatchewan Research Council

Attention to Environment and CSR Assessing and mitigating the social and environmental impact, and being responsible corporate citizens arekey to developing sustainable operations. As Donaldson explained, “The Joint Venture team is very focussed on ensuring the project has a positive impact on local communities and respect for the environment. Eritrea places a high level of focus and importance on the environment, and we are working through a comprehensive social and environmental impact assessment as part of our definitive feasibility study 76

July 2015

and this will form the foundation of our social and environmental management plans. .” One of the biggest aspects for the Colluli Potash Project going forward will be recruiting and incorporating local residents. “The way we interact with the community is by informing them of the project itself and what it means in terms of equipment, people and changes in the local area. We also have an exploration camp set up in the area and the local people actually run the facility for us— cooking, cleaning and assisting in miscellaneous tasks,” Donaldson explained.


MINING

“In the future, as the project develops, we see those local communities as the priority recruiting area to upskill for jobs in the operation. “There are mining operations ongoing in the area now so the skillset is building up in the country that we can draw from. Caterpillar is also set up in the country to do mobile production technician training so there are skills and trades within the country. We’ll prioritize jobs with the local community but for the professional roles we’ll have to go further abroad like South Africa and Europe for seasoned mining professionals.”

Company Information INDUSTRY

Mining HEADQUARTERS

West Perth, Western Australia, Australia FOUNDED

2003

Safety Taking safety into account is a priority for Danakali. “Our safety approach is based on risk assessment and accurate planning procedures [that are considered] prior to task execution,” said Donaldson. “Fundamentally, everything we do has a risk-based approach. We go through an annual risk register process, which looks at corporate, safety, project and operational risks. We prioritize those to ensure we have mitigation plans in place as needed.” The Colluli Potash Project is by far one of the mining industry’s most comprehensive and exciting projects in the world. “This is one of the best undeveloped potash and agrichemical resources in the world today, favorably positioned to supply the world’s fastest growing markets,” Donaldson concluded.

EMPLOYEES

10 PRODUCTS/ SERVICES Danakali (ASX:DNK) is an ASX listed company and 50 per cent owner of the Colluli Potash Project in Eritrea, East Africa. The company is currently developing the Colluli Project in partnership with the Eritrean National Mining Company (ENAMCO). The project is located in the Danakil Depression region of Eritrea, and is ~75km from the Red Sea coast, making it one of the most accessible potash deposits globally. Mineralisation within the Colluli resource commences at just 16m, making it the world’s shallowest known potash deposit. The resource is amenable to open pit mining, which allows higher overall resource recovery to be achieved, as it’s generally safer than underground mining and is highly advantageous for modular growth.

w w w. d a n a k a l i . c o m

77


Charlesworth Nuts:

Generations of Quality

Managing Director and third-generation operator Brett Ch the passion for quality and taste that makes a Charlesworth Written by: Sasha Orman Produced by: Rob Benson


harlesworth discusses h Nuts worth its salt

79


CHARLESWORTH NUTS

2nd & 3rd Generation Mark, Chappy and Brett

I

n 1934, Herb Charlesworth purchased a small nut shop at the Adelaide Central Market for his wife Doris to run. More than seven decades later, family-owned and operated Charlesworth Nuts is still thriving as a beloved Australian brand with shops throughout South Australia. With a growing online marketplace and an eye toward further brick and mortar expansion, Charlesworth Nuts is continuing to build on the strong values and passion for quality that have become synonymous with the Charlesworth name. 80

July 2015

The Charlesworth difference Every business has factors that set them apart from the competition. At Charlesworth Nuts shops it’s all about the friendly smiles, the fresh, highquality flavors, the thoughtfully conceived gifts, and the promise of hot roasted nuts for every guest—all the little things that put the company’s dedication to customer service front and center. “We’re very passionate about those things—we live them and breathe them every day—the service side of it especially,” says Brett Charlesworth, Managing


FOOD & DRINK

1st Store Central Market 1950s

Director at Charlesworth Nuts and grandson of its original owners. “If you treat your customers well they’re going to keep coming back to you, so we set out to make every customer experience a memorable experience. Smiling, engaging, caring, and advising— all of those simple things are things that set us apart.” That passion is built into the business, and affects every aspect of the company. It’s in the factory, which has largely eschewed automation in favor of handmade confections and hand-arranged gift baskets. It’s also in the company’s

relationships, from communication with customers to partnerships with the suppliers providing Charlesworth Nuts with the raw fruits and nuts it turns into handcrafted treats and gifts every day. “It’s a business very much built on values and a passion to only sell the absolute best product we can,” says Charlesworth. “We’re absolutely passionate about people, whether it’s customer service or whether it’s dealing with our suppliers or our team down here in Marion. It’s all about respect and treating people well and caring for them, whether they’re your customers or your team

w w w. c h a r l e s w o r t h n u t s . c o m . a u /

81


We’re here when you need us.

The product issuer is Statewide Superannuation Pty Ltd ABN 62 008 009 223 Trustee and Licensee of Statewide Superannuation Trust ABN 54 145 196 298 (the Fund). A Product Disclosure Statement is available from www.statewide.com.au. You should consider the applicable Product Disclosure Statement before making a decision to acquire, or continue to hold, this product. Statewide Superannuation Pty Ltd ABN 62 008 099 223 (AFSL 243171), RSE Licensee and Trustee of Statewide Superannuation Trust ABN 54 145 196 298.


CHARLESWORTH NUTS members. If you do that job very well and consistently, and if you’ve got a good product to sell, then generally you’re going to have a good business.” Three generations of quality and growth While Charlesworth Nuts was founded by Herb and Doris Charlesworth, their children and grandchildren have kept the legacy of the business alive in the decades since, and Charlesworth credits his father Chappy—who took over the business after World War II while grandfather Herb suffered from

FOOD & DRINK

health issues—with the passion for quality that is an integral part of Charlesworth Nuts to this day. “This was where we really started to put a huge emphasis on freshness and quality of products we sold,” says Charlesworth. “They had to be of a very high standard and the absolute best when it was in our care, so that when it was sold to our customers, we knew that they were getting best product they possibly could. He was incredibly passionate about that, and those qualities were instilled in my brother and I, and we’re instilling them in the next generation. That’s very much a

SUPPLIER PROFILE Statewide is the industry super fund committed to doing more for you. We work hard for our members and employers, striving for competitive fees, solid investment returns and great service. Our home base in Adelaide makes us a natural partner for great South Australian companies like Charlesworth Nuts, but with a team of over 100 locals offering expert advice and support, we provide super service to businesses Australia-wide. From explaining your super obligations, to providing flexible administration options, to offering a free clearing house, to holding super education sessions for your staff – we’re here to do more for you.  And because we’re committed to both our employers and our members, we’re available over the phone, online, in person, at our office or yours – whenever you need us, wherever you need us. Statewide. We do more for you.

Website: www.statewide.com.au

w w w. c h a r l e s w o r t h n u t s . c o m . a u /

83


C O M PA N Y N A M E

84

July 2015


CHARLESWORTH NUTS hallmark of our business.” Brett Charlesworth and his brother Mark were brought into the business in the 1970s, and with this third generation the company opened its Marion factory headquarters and began expansion from one shop to a dozen throughout South Australia. Today the fourth generation, consisting of Brett Charlesworth’s three sons, has now already entered the business and is bringing with it the passion and drive to push the growth of Charlesworth Nuts even further through methods like interstate development. “We’re looking at that very seriously in the years ahead, and just continuing to expose my three sons to the business—what it takes to

“Everyone’s part of a family, everyone relates to family, and really we’re just one family selling to other families out there.” – Brett Charlesworth, Managing Director

FOOD & DRINK

grow and be successful, all the while maintaining our values as the heart and soul of the business,” says Charlesworth. “It’s just a matter of getting the processes right, working on systems and making them more entrenched—as the business gets bigger and bigger, it’s important that the right structure’s there. Now we’re just going through a bit of a generational shift.” Charlesworth is also proud to discuss the recent addition of a new member of the Charlesworth Nuts legacy, and the beginning of its fifth generation: Jayde, born 18 months ago to middle son Kain and his wife Kat. “She’s already become a bit of a face to the business,” the proud grandfather boasts, noting that she was featured on the front cover of the company’s Christmas catalog last year. “Really it’s to reinforce the fact that we are all about family— we are a business, but the family side of that is very important to us, and we think it’s very important to the people we’re selling to. Everyone’s part of a family, everyone relates to family, and really we’re just one family selling

w w w. c h a r l e s w o r t h n u t s . c o m . a u /

85


MWT Foods is a grower, processor & marketer having an exceptional reputation within the edible nut, dried fruit & coconut product industry. They have extensive knowledge and experience in procurement, quality assurance, sales and logistics on behalf of its growers, suppliers and customers. The Waring’s and specifically MWT Foods have established itself as a leader in the Global food industry since 1965.

We are proud partners of Charlesworth Nuts and the Charlesworth Family.

“If you treat your customers well they’re going to keep coming back to you, so we set out to make every customer experience a memorable experience” – Brett Charlesworth

Head Office 21-31 Goodwood St Richmond, VIC 3121, Australia

info@mwtfoods.com

Tel: +61 3 9420 2900 Fax: +61 3 9421 0507

www.mwtfoods.com


CHARLESWORTH NUTS to other families out there. Little Jayde allowed us hopefully to connect with people even more out there.” Looking ahead What does the future hold in store for Charlesworth Nuts? “Over the last five to 10 years now, it’s become increasingly obvious to lots of people that nuts are nutritious,” says Charlesworth. The brand is constantly working on bringing innovation to its inventory with new lines from chocolate coated liquorice treats to healthy nut mixes to appeal to diet-conscious crowds—though Charlesworth notes that it is crucial to always stay true to the brand. “A lot of our products are reasonably simple and straightforward,” he adds. “But that’s often what gives them the appeal.” The company is also looking to grow outward and continue building as a family business, reinforcing business infrastructure and further promoting its online sales while also nurturing the core of the business, which continues to be its brick and mortar shops. Most importantly, Charlesworth Nuts will continue to pass down its legacy of passion to the generations to come. “It’s not just about business, it’s our family name that’s up there and it’s our reputation that’s at stake,” says Charlesworth. “It’s not just this commodity we’re buying and selling, it’s very much a personal and emotional investment in it. Nuts have been drummed into us. That’s what we believe in.”

FOOD & DRINK

Company Information INDUSTRY

Fooo & Drink HEADQUARTERS

Marion, South Australia, Australia FOUNDED

1934 PRODUCTS/ SERVICES

Founded in Adelaide in 1934, Charlesworth Nuts is a proud Australian owned and operated retailer in the nuts and dried fruits business. Today, Charlesworth Nuts operates 11 locations around South Australia as well as online retailing for all of your dried fruit, nut and gift needs.

w w w. c h a r l e s w o r t h n u t s . c o m . a u /

87


Hazeldene’s:

Hazeldene’s Embraces a Future of Growth

With three generations at work, family owned and operate poultry producer Hazeldene’s honors its history, while loo technology and new directions for growth in the future. Written by: Sasha Orman Produced by: Glen White


ed oking to

89


HAZELDENE’S

Fully automated evisceration equipment ensures a quality product.

T

he world can change a lot in nearly 60 years. Hazeldene’s Chicken Farm began in the late 1930s, but was founded in 1957, by the husband and wife team of Dick and Mavis Hazeldene, and the company remains family owned and operated to this day. But that family has expanded— today Hazeldene’s is a leader 90

July 2015

in poultry production and the largest private employer in its home of Bendigo, Victoria. While Hazeldene’s is committed to honoring its past and its family name, it’s also a major operation that is fully embracing the future, with all the innovative technology and consumer-driven trends that the future brings.


FOOD & DRINK

Growth Through Technology Technology has evolved rapidly over the years, and that includes cutting edge farming and agricultural technology. “Our business has always been keen to establish better processing through the use of the latest technology systems,” says Adam Hazeldene, a third-generation Hazeldene and Technical Services

Manager for the business, who completed studies in Computer Systems Engineering and traveled to work with poultry organizations throughout Europe before returning home to Hazeldene’s armed with education and innovation. Hazeldene’s has been investing heavily in state-of-the-art poultry equipment to streamline and w w w. h a z e l d e n e s . c o m . a u /

91


HAZELDENE’S improve its processes across several of the company’s supply chain stages. Highlights of this equipment include fully climatecontrolled lairage areas, a multiphase gas stunning system in keeping with the modern poultry industry’s best practices, and a brand new AeroScalder for improved defeathering. The business has also been working steadily over the last decade to grow and integrate its automation and SCADA systems.

“We have a great relationship with some of the major equipment manufacturers, and we’re passionate about working to a smarter process,” says Hazeldene. “We’ve had our challenges along the way, but I believe we have a very robust system in place. It’s taken significant resources and planning to get our automation to where it is today—however, I’m confident that this has and will continue to prove its worth over time.”

Proud to be associated with Hazeldene’s Adding maximum value to their process Our company, a worldwide supplier of poultry processing systems, has the process knowledge and extended sales and service organization to equip and support you, adding maximum value to your process. Working continuously on innovative technology, we are able to provide solutions for poultry lines up to 13,500 bph and systems to create the desired end products and packing. Call to find out more: +61 7 3900 3000 info.au@marel.com | marel.com/oceania


FOOD & DRINK

Consumers Driving A Better Caliber of Poultry Consumer interests and demands have been driving many trends throughout the food and beverage industry, and one major interest has been in the quality and care of the food they’re consuming. The RSPCA’s Approved Farming Scheme was introduced to give consumers peace of mind in a higher standard of animal welfare for Australia’s farm animals—and with ethics that align with this goal, Hazeldene’s takes pride in being one of the earliest adopters of the RSPCA Approved Farming scheme. “We’ve always been focused on our animal husbandry and animal welfare, so formalizing this focus with RSPCA accreditation really made sense for us as a business— this attribute runs deep through the company on all levels,” says Hazeldene, who notes that the company’s quality and standards throughout its farming division have only improved with the introduction of the program. “The other trend I see is that food standards over the last years have raised the bar increasingly,

and we expect that to continue,” says Hazeldene. “I believe our employees have embraced this and are engaged to drive the necessary changes. I think into the future consumers will want to know more about where their food comes from, who produces it and what goes in it, and I see opportunity for locally grown and produced food to flourish.” Shifting Focus While Remaining Centered Hazeldene’s has traditionally been a primarily business-to-business brand, focusing on capturing the wholesale market as well as the retail market as a supplier for supermarket private label brands. But as consumers interest in free range and sustainably raised chicken is growing, Hazeldene’s is shifting its focus and coming into its own. “We’ve recently reached a milestone in that we are about to launch three products under Hazeldene’s brand into Coles supermarkets nationally next month,” says Hazeldene. It’s both a milestone and a signifier that Hazeldene’s is in the midst w w w. h a z e l d e n e s . c o m . a u /

93


HAZELDENE’S

The water chilling area of the process ensures a fast “shock” chill, giving a much more tender product.

CUSTOMISED REFRIGERATION SOLUTIONS FOR PROCESSING AND STORAGE Gordon Brothers are at the forefront in providing Freezing, Cooling and Storage Solutions for a wide range of industries.

03 9389 6666

www.gordonbrothers.com.au


FOOD & DRINK

of a very strong period of growth. “Because food standards have risen considerably, the retailers are now asking us for things that were not part of our organization even five years ago—it’s a big change, but it has challenged us to rise to the occasion. I see further growth in the free range market and export market, and more focus on the Hazeldene’s brand of products for us as a business.” But for as long as the company continues to grow and evolve with time, at the core of the business is a pride in the family name and in the work that this family—and its extended family of farms and staff—works to produce every day. “Our business strategy has always been focused around the idea that if we produce something of exceptional quality, our customers will stick with us,” says Hazeldene. “Everything we do here 100 per cent revolves around producing a quality product for a consumer-driven market,” says Hazeldene. “We’re very proud of our family name. So we don’t sacrifice or take short cuts: we do what we say, and we are who we are.”

“Retailers are now asking us for things that were not part of our organization even five years ago—it’s a big change, but it has challenged us to rise to the occasion”

Company Information INDUSTRY

Food & Drink HEADQUARTERS

Lockwood Victoria, Australia FOUNDED

1957 EMPLOYEES

1000+ PRODUCTS/ SERVICES

Established in 1957, Hazeldene’s has been a proud family-owned poultry production company for nearly six decades. Strong in its commitment to superior animal welfare standards and sustainable practices, Hazeldene’s is proud to offer RSPCA certified, Free Range certified as well as conventionally farmed chicken.

– Adam Hazeldene, Technical Services Manager

w w w. h a z e l d e n e s . c o m . a u /

95


Healthe Care:

The Leading Private Hospit Provider for Southeast Victo

With The Valley Private Hospital and South Eastern Pr its portfolio of 16 medical facilities, Healthe Care has private hospital with state-of-the-art technology, spe and a driving vision. Written by: Stephanie C. Ocano Produced by: Rob Benson


tal oria

rivate Hospital in transformed this cialist services


H E A LT H E C A R E

O

ur vision for The Valley and South Eastern private hospitals is to become the major private hospital provider for southeastern Melbourne and Victoria. Formed in 2005 with the intention to lead individuals to health, Healthe Care has become a reputable source across 98

July 2015

Australia for private healthcare. With a philosophy rooted in empowerment and well-being, Healthe Care takes pride in delivering premium care to all its valued clients and patients through specialist services, facilities and innovations. We recently spoke with CEO of The Valley and South Eastern


H E A LT H C A R E

private hospitals, Neil Henderson, But rather than fearing the who offered his insight into the challenge, he took it on headfirst. success of the company as well as “I really wanted to contribute its plans for the future. to the greater common good and develop something that I could sit A Success Story back on and be proud of in years When Henderson joined Healthe to come,� said Henderson of the Care there was a lot of room for early days. “What contributed [to improvement in The Valley and the recent paramount success] South Eastern private hospitals. was the recognition that the w w w. h e a l t h e c a r e . c o m . a u /

99


B U I L D I N G T H E H E A LT H C A R E PROPERTIES OF THE FUTURE Australian Unity Real Estate Investment (AUREI) is proud of its long standing partnership with Healthe Care. Since 2006, Healthe Care has been a tenant in the Australian Unity Healthcare Property Trust (HPT). The HPT is Australia’s largest and most successful healthcare real estate investment trust and currently owns a portfolio of 27 hospitals, medical centres and healthcare-related properties across Australia. A Healthe partnership with an experienced capital partner As the demand for healthcare services increases in line with Australia’s rapidly ageing population there is significant scope to expand, improve and upgrade existing hospitals and medical centres to meet this growing demand. The HPT has undertaken, and continues to work on, a number of developments that provide win-win outcomes for patients, the wider community and investors. Development Snapshot:

Brunswick Private Hospital,

Brisbane Waters Private Hospital,

Victoria

NSW Central Coast

ƒ $9.1 million re-development completed in May 2012 – delivering 67 new beds for rehabilitation and general medical services.

ƒ Property purchased for $16.2 million in July 2014. ƒ $5.6 million to be spent on re-furbishing the 78 bed general hospital complex.

The Valley Private Hospital,

Townsville Private Clinic,

Mulgrave, Victoria

Queensland

ƒ $23 million development, delivered 38 new beds, four new operating theatres and an endoscopy room (Stage One). ƒ $14.6 million development will deliver 60 new beds and a multi-deck car park (Stage Two). ƒ $15.6 million development to construct additional medical consulting suites (Stage Three).

ƒ Property purchased for $5.5 million in October 2014. ƒ $7.5 million to be spent converting the property into a 60 bed mental health hospital to cater for increased demand for mental health services in the area.

Further Information The Australian Unity Healthcare Property Trust is issued by Australian Unity Funds Management Limited ABN 60 071 497 115, AFSL 234454. The information here is general information only and does not take into account the financial objectives, situation or needs of any particular investor. Before deciding whether to acquire, hold or dispose of a product, investors should read the Trust’s current Product Disclosure Statement (PDS). A copy of the PDS can be obtained by calling 13 29 39 or visiting australianunityinvestments.com.au. PROP0008-201504


H E A LT H E C A R E

H E A LT H C A R E

fundamentals were there for the two hospitals to transform into major players.” And transform they did. “The basic infrastructure of the buildings was there,” said Henderson, “but the spark that became the difference between mediocrity and rapid success was vision, leadership and belief.” “Basically, what I did in 2012 was to determine that these two hospitals could develop and grow rapidly and I needed to build myself a team that would believe and be inspired by the vision

SUPPLIER PROFILE

to lead and motivate others to follow,” added Henderson. The “others” Henderson referenced included doctors and staff, as well as stakeholders. By recruiting and training a team of managers who were committed to said vision and culture, this inspiration was spread to each department where the managers imparted good leadership. In order to continue this spread of positivity, the “Love Your Work” program was instituted to recognize individuals that were doing something above and

AUSTRALIAN UNITY REAL ESTATE INVESTMENT

Australian Unity is a mutual company providing healthcare, financial services, retirement living and aged care accommodation and services to more than half a million Australians. From health insurance and preventative health programs through to investments, banking and retirement solutions, we provide services that maintain the security and dignity of our customers throughout their changing life stages. Over the past decade, the Australian Unity Real Estate Investment team has become one of Australia’s premier unlisted, direct property fund managers. It currently owns and manages more than 50 properties in the healthcare, retail and commercial sectors across Australia and has more than $1.9 billion in funds under management. The Australian Unity Healthcare Property Trust is one of the largest and most highly regarded unlisted property funds in Australia. It has a diversified tenant base and holds a quality direct portfolio of 27 healthcare properties across Australia, valued at over $660 million. Website: www.australianunityinvestments.com.au

w w w. h e a l t h e c a r e . c o m . a u /

101


Hospital Solutions & Projects

Workspace concepts tailored to your needs Maquet has many years of experience in the handling of large-scale hospital projects. We accompany the customer from the start of the project through to the final handover offering outstanding concepts for operating theaters, catheter laboratories and intensive care units. With Maquet Hospital Solutions, a customized configuration is designed to meet each facility’s unique needs and requirements. Each customer is assigned to a personal project manager; these project managers advise throughout the project, coordinating the involved specialists during all stages of planning and implementation. A professional team ensures smooth procedures within all phases of the project. This centralized oversight ensures that each project can be implemented quickly and reliably in the specified time frame and within the specified costs. Maquet | The Gold Standard

www.maquet.com


H E A LT H E C A R E beyond their line of duty. “At the end of the day, if people are being recognised for their hard work, they are likely to be more motivated to do their job,” reiterated Henderson. Exclusive, World-First Technology There are four aspects of Healthe Care that make it distinct from other private hospital care providers: a strong emphasis on strategic visioning, a strong team with a strong bond to one another and the hospitals’ vision, a high level of delegation from corporate

SUPPLIER PROFILE

H E A LT H C A R E

to local decisions and some hightech equipment that is rarely seen in competitor hospitals. Investing $4 million, The Valley Private Hospital built the world’s first fully hybrid operating theatre integrated with a Siemens Zeego 3D imaging system, a Maquet theatre system and a Magnus table. The move was so groundbreaking that teams from both Siemens and Maquet in Germany traveled to the hospital to admire and marvel at the world first. Additionally, the hospital also recently built a brand new 10-bed, state-of-the-art intensive care unit

MAQUET AUSTRALIA PTY LTD

Maquet, the largest subsidiary of the Getinge Group, is a trusted partner for hospitals and physicians for more than 175 years. The company is a global leader in medical systems offering innovative therapy solutions and infrastructure capabilities for high-acuity areas within the hospital — including the Operating room (OR), hybrid OR/cath lab, and intensive care unit (ICU) — as well as intra- and inter-hospital patient transport. Additionally, Maquet develops intelligent and sustainable room concepts that exceed the expectations of modern hospitals, working in close cooperation with customers, production engineers and architects to integrate high quality products and services. Maquet | The Gold Standard Website: www.maquet.com

w w w. h e a l t h e c a r e . c o m . a u /

103


H E A LT H E C A R E with the latest technologies, built a new ward, four new operating theaters, and then added an EOS, Nobel Prize winning, spinal imaging system from France. Storz in Germany were the first to develop a 3D camera for laparascopic surgery and The Valley Private Hospital acquired this as well. When asked what it felt like to own such impactful technology that no one else has yet, Henderson replied with three

words full of enthusiasm: “I love it!” “It [the technology] has enabled us to do a few things,” he added. “For one, it has been critical to change the perception of the hospital from where it was to where it is. It has made people sit up and notice that we are serious and do what we say we will do. It also enables us to attract top specialists in the field because they want to use that technology—which adds to the reputation and prestige.”

Ensign - Australia’s largest provider of managed laundry solutions. Ensign provides more than 80,000 tonnes of laundry services to customers throughout Australia weekly. Specialising in linen and workwear supply, laundry and management, each day the professional and experienced Ensign team deliver customised services to: • • • • • • • •

public and private health facilities hotels restaurants and hospitality venues educational institutions airlines retail outlets senior living facilities food and other industrial manufacturers

For over 75 years customers have trusted Ensign to take care of their laundry needs. Ensign. We’ll take care of it. ensignlaundries.com.au


H E A LT H C A R E

Looking to the Year 2020 “We are a vibrant, growing and excited organization with a big future—which creates lots of opportunities to participate in,” said Henderson.

Healthe Care’s vision for The Valley and South Eastern private hospitals is to grow overall, but its goal for the year 2020 is to own 50 per cent of the market of the 1.2 million people living in w w w. h e a l t h e c a r e . c o m . a u /

105


H E A LT H E C A R E

106

June 2015


H E A LT H C A R E

southeastern Melbourne and Victoria. This exponential growth would require going from the current 260 hospital beds to 560 by said year across 3 campuses. Currently, 60 beds are being built at The Valley Private Hospital and the following 60 beds will be built at South Eastern Private Hospital—which will take the current total to 380 hospital beds by 2016, well on track to realize the 2020 vision. Healthe Care has committed significant funds to redevelopment projects. Undertaking extensive refurbishment of patient accommodation and adding additional services, Healthe Care’s aim is to build facilities with strong partnerships and service integration that deliver innovative programs, provide flexible care options and support patients well beyond their hospital stay. For those after the best private hospital care there is in Australia, the choice is Healthe Care.

“We are a vibrant, growing and excited organization with a big future—which creates lots of opportunities to participate in.”

Company Information INDUSTRY

Healthcare HEADQUARTERS

Sydney, NSW, Australia FOUNDED

2005 EMPLOYEES

Healthe Care: 5,000; Valley / South Eastern: 1,000 PRODUCTS/ SERVICES Healthe Care’s philosophy is simple: to make and keep people healthy. By providing the right tools and information alongside a range of health services and solutions, Healthe Care empowers its patients to take control of their health. With a portfolio of 16 hospitals, 5,000 employees and 1,600 hospital beds (for now), Healthe Care is the third-largest commercial group in Australia.

– Neil Henderson, CEO

w w w. h e a l t h e c a r e . c o m . a u /

107


Charter Hall/WATPAC:

A New Class of Workplace Evolving Sydney

With architectural, environmental and aesthetic considera above and beyond industry standards, the 333 George St the bar in Australia Written by: Laura Close Produced by: Bryan Giles


for an

ations that go t. project is raising

109


C H A R T E R H A L L / WAT PA C

Charter Hall’s 333 George St building in Sydney sets the bar high for other developers.

I

n 2013, the average Australian worked 1,676 hours, according to statistics from the Organization for Economic Cooperation and Development. Countless studies indicate the quality of a workplace plays 110

July 2015

a major role in not only the job satisfaction of an employee, but their productivity as well, putting property developers in a race to design and construct the next generation of modern workplaces. In Sydney, there’s one project in

https://www


CONSTRUCTION

the works that sets the bar high for other developers: Charter Hall’s 333 George Street building. Owned and developed by Charter Hall’s Core Plus Office Fund, when this building is finished in mid-2016 it will be one of the most modern-looking in the Sydney skyline. Constructed on a relatively small footprint of just 960 square meters, international architects Grimshaw and Crone Partners had to design every floor to utilize the maximum space per unit while not compromising the contemporary aesthetics of the building. Valued at $250 million, this project will be home to three floors of highend retail space with prominent street-facing units. Above that, the building is being constructed to accommodate 15 levels of office space with a combined floor space of 12,500 square meters. Probably the most eye-catching aspects of the project— and what Charter Hall believes will contribute to a strong sense of community among building tenants— are the five levels of cascading rooftop terraces “set within a fully glazed veil tiara overlooking the main

thoroughfare of Sydney’s business lifestyle epicentre.” “Those rooftop terraces are one of the greatest challenges of this project from a design perspective, but certainly one of the greatest features of the building,” said Chris Chapple, head of office and industrial property services at Charter Hall. “They provide not only a response to the design constraints of the building, but also a fantastic opportunity to bring the outside in for the tenants that are going to occupy that space.” A Cleaner, Greener Office Space Aesthetics are not the only major selling point for the cutting-edge office building: construction company WATPAC has been working hand-in-hand with the architects to deliver a five star Green Star rating. Awarded by the Green Building Council of Australia (GBCA), the Green Star rating is part of a major push to build more energy efficient buildings moving into the future. Some hallmarks of a Green Star rated building, according to the GBCA, include 66 percent

w. c h a r t e r h a l l . c o m . a u / o f f i c e / o f f i c e - p r o j e c t s / 3 3 3 - g e o r g e - s t r e e t /

111


C H A R T E R H A L L / WAT PA C less electrical consumption than other Australian buildings of similar size, 51 percent less potable water usage, and 62 percent fewer greenhouse gas emissions. As the public becomes more informed on the implications of climate change— and as the legislative future around potential carbon taxes remains undecided— these highly efficient measures become major points of interest for prospective tenants. “Ultimately, the goal for the fund is to deliver a high-quality, innovative asset with the intention to own the asset on completion,” Chapple said. “Making sure that the building is sustainable into 112

July 2015

Assuring a building is sustainable into the future from is a strong focus for Charter Hall.

the future, not only from an environmental perspective, but from an occupancy perspective, is definitely a strong focus for Charter Hall. We want to ensure that the design is well considered and that it responds to tenants’ needs, not only now, but also into the future.” Charter Hall is also looking to target a five star NABERS Energy Rating, indicating “excellent performance”. However, unlike the

https://www


CONSTRUCTION

identified and selected in order to achieve the energy ratings that we’ve been contracted to make.”

an environmental and occupancy perspective

Green Star rating, which is awarded based on the specifications that a building is designed to, NABERS looks at the actual operational performance of a building once it’s been brought into service. “I suppose the project means different things for different people,” said Justin McGrath, WATPAC’s senior project manager. “ From a base building perspective, all the latest technology has been

In the Heart of Sydney The 333 George Street project finds itself in the company of a great deal of high-end retail and entertainment locations, as well as heritage buildings and other office spaces. While Charter Hall wants the project to cast a large shadow— metaphorically speaking— Chapple explained that the glass construction of the building would eliminate any overshadowing of other historic sites in the area, as the height and shape of the building has been modeled to

w. c h a r t e r h a l l . c o m . a u / o f f i c e / o f f i c e - p r o j e c t s / 3 3 3 - g e o r g e - s t r e e t /

113


C H A R T E R H A L L / WAT PA C

Although being in a central location can be great for business, it also has its challenges.

conform within the solar access plane parameters While having a central location in such a thriving, historic environment is a major selling point, it also presents a significant challenge. With substantial traffic— both pedestrians and vehicles— construction efforts have been somewhat complicated. “We weren’t able to get any loading zone on George Street for construction purposes because 114

July 2015

there’s a public bus lane in front of the project. All our loading and unloading has to be done internally, within the site footprint,” McGrath said. “So this adds a complexity during construction to make sure there is access and out of the site.” As challenging as this was for early— and ongoing— construction efforts, WATPAC’s ability to adapt demonstrates another layer of the innovative thinking the project is rife with.

https://www


CONSTRUCTION

“WATPAC is exceeding the key milestones,” Chapple said. “They’re working with the relevant authorities and managing their program and interaction with the surrounding properties while continuously reaching their milestones.” And that traffic that complicated the process in the first place? That should soon be mitigated too, with the addition of a light commuter rail that is planned to pass right through George Street. In mid-December, the city of Sydney announced that they’d awarded the contract for the $2.1 billion light rail system to ALTRAC Light Rail consortium, with services expected to commence in early 2019. George Street certainly doesn’t suffer now from a lack of consumers, but the light rail system has the potential to increase that number while decreasing the number of cars on the road. With fewer vehicles coming through, the project shouldn’t be plagued by typical congestion woes, such as lack of parking. With a bevy of selling points, including a unique space age-meets-open-air design, a nearby light rail system, a high customer volume and environmental consideration that should stand the test of time, Charter Hall should have extremely little challenge in finding tenants willing to make pre-commitments. In fact, though he couldn’t disclose who Charter Hall was already in talks with, Chapple seemed to indicate that task was moving right along.

Company Information INDUSTRY

Construction HEADQUARTERS

Sydney, NSW, Australia PRODUCTS/ SERVICES Located on one of Sydney’s most prominent corners, George Street and Martin Place, the iconic office space under construction at 333 George Street provides a distinct work environment unlike anything else in the CBD. Designed by international architects, Grimshaw and Crone Partners, 333 George Street offers 15 levels of contemporary office space across 12,500 square meters and three levels of statement retail across 2,100 square meters with extensive frontage to George Street, creating a flagship retail destination. The defining feature central to the building is its five levels of cascading rooftop terraces, set within a fully glazed tiara overlooking the main thoroughfare of Sydney’s business and lifestyle precinct. This space will provide a focal point for occupants of the building, allowing meeting and interaction within a light and airy space. With the opportunity to brand the building, 333 George Street provides an exceptional opportunity for a company to enhance its brand positioning and profile and make a confident statement about the future of their business. The project is close to announcing tenant pre-commitments to the retail and office space.

w. c h a r t e r h a l l . c o m . a u / o f f i c e / o f f i c e - p r o j e c t s / 3 3 3 - g e o r g e - s t r e e t /

115


Colliers International:

Colliers International Poised Major Industry Overhaul

Colliers International provides a sneak peak at the bevy o improved service offerings on the horizon. Written by: Ian Hanner Produced by: Bryan Giles


for

of new and


C O L L I E R S I N T E R N AT I O N A L

We enable our clients to make better, faster, more informed decisions

F

rom their seat in Australia, Colliers International is looking to change the property management business landscape in a fundamental way. Colliers got its start in 1976 in Australia when three of the country’s real estate services firms joined forces. According to the company website, it was only two 118

July 2015

short years before the company was expanding internationally. Today, the organization consists of more than 16,300 employees spread out across 67 countries. Managing thousands of different locations, the company is today known globally as a top 2 services provider in the field. But while Colliers has built a reputation for


CONSTRUCTION

excellence of service, they’re not content to call it a day just yet. “We’ve really challenged the way we deliver our services— and the market is pretty vanilla, right?” said Andrew Bull, national director of engineering and operations at Colliers International. “Everyone’s got more or less the same offering. So we’ve really

challenged ourselves to come up with something special which really differentiates us from the rest of the competitors [while providing] our clients with a service that exceeds their expectations and helps their bottom line. As a result, we’ve made some changes in our business and are about to make some more which will really set us w w w. c o l l i e r s . c o m . a u

119


Forbes | 2014

Smart, flexible elevator, escalator, building doors and access solutions for the buildings of today – and tomorrow Quick, comfortable movement combined with reliable security and access control. Meeting these conflicting demands is no easy task. Our answer? KONE People Flow Solutions – smart, flexible solutions for access and destination control, information communication and equipment monitoring.

www.kone.com.au

Access

New KONE UltraRope™ elevator hoisting technology enables the next big leap in high-rise building design The latest in a long line of technological breakthroughs, KONE UltraRope™ sets a new benchmark for high-rise buildings. Released to the market in June 2013, the super-light KONE UltraRope technology provides unrivalled elevator eco-efficiency, reliability and durability, while also improving elevator performance. KONE UltraRope can enable future elevator travel heights up to 1,000 metres– twice as high as what is possible with today’s technology

Elevators KONE

People Flow Solutions

Escalators

Building Doors

Forbes | 2014


C O L L I E R S I N T E R N AT I O N A L apart from most of the field.” The Revolution to Come At face value, it’s difficult to imagine how a company could stand out in an industry where all companies have relatively small variations on the same service. But Colliers hasn’t grown to the size it is today by lack of imagination. And Bull meant it when he said the company has big plans for differentiation. “A really good example of that is our call center,” he said. “Traditionally call centres in the industry have have provided a reactive service.”

CONSTRUCTION

The way most building management companies handle call centers goes something like this: one of the company’s many tenants will discover that an essential feature of a building is out of commission, such as an elevator being out of order. That tenant would then call the property management company, who would send someone out to remedy the issue. The process seems simple enough, but Colliers saw a means to improve the process. “What we’ve done is shifted the call center into an environment

The average tenure of a Colliers International call centre operator far exceeds the industry norm w w w. c o l l i e r s . c o m . a u

121


C O L L I E R S I N T E R N AT I O N A L where they can monitor alarm outputs,” he said. “So now what we are doing is pushing alarm outputs from some of the building management systems into our call center environment.” In essence, this shifts a very large portion of the building’s maintenance requirements from a situation where someone is sent out after a tenant gets irritated over an issue to one where the company can be proactive. By allowing call center representatives to

FOR ALL YOUR PROPERTY RISK & COMPLIANCE REQUIREMENTS. AESC DELIVER VALUE OUTCOMES. • Fire Safety Compliance Audits • Full Function Fire Test (FFFT). Manage, witness & report • Evaluation of Building Fire Integrity • Property Risk Assessments • Asbestos Surveys, Reports and Registers • Provision of State Speciic Annual Fire Safety Certiicate • Exclusive Web-based Risk Management System

As a market leader in fire safety and property risk compliance, AESC offers peace of mind knowing that you are meeting statutory obligations and mitigating your risk.

NATIONAL COVERAGE IN AUSTRALIA & NEW ZEALAND 1300 237 200 I mail@aesc.com.au | www.aesc.com.au

monitor alarm outputs in real-time, maintenance professionals can be dispatched long before the tenant even realizes there’s a problem. “This changes the entire paradigm for the industry— we’re moving from a very reactive approach to actually monitoring the building condition and trying to stop faults before they become tenant-related issues,” Bull said. This is all made possible by the information that “big data” provides. As the monitoring of

Leaders in the Science of Moving People Whitfield Rose are specialist Vertical Transportation Consultants. Experts in energy efficient, optimised elevator system designs for new developments and life cycle upgrading solutions for existing properties. Our vertical transportation consulting services include: Portfolio Management Capital and Strategic Planning Performance Evaluations New Elevator Design & Tendering Elevator Modernisations Project and Contract Administration Elevator and Escalator Maintenance Auditing Customised Maintenance Contracts Expert Witness Hazard and Risk Identification Technical Advice and Commercial Advice Due Diligence Reports Energy Metering Whitfield Rose | Elevator Consultants | P +61 3 9411 1600 | W whitrose.com.au Melbourne | Sydney | Brisbane | Perth | Adelaide


CONSTRUCTION

systems is increasingly automated, the necessity of an individual to come out to the site for a routine inspection is greatly reduced, allowing for the most seamless tenant experience possible. It also means that tenants aren’t annoyed by essential building services regularly failing, and in the long term, this increases tenant retention for the landlord. “The key for me is how we present that information to our clients in a way that not only adds value to the process, but enables our clients to make better, faster decisions,” Bull said. “I read a statistic the other day which said that in 1976 the average supermarket or grocery store stocked 9,000 items and now the average store stocks about 40,000 items. But your average shopper only needs about 150, so you think about all of those snap decisions that they have to make, walking around the supermarket. I used that analogy in our market as well. If I know my client needs 150 things then I’m going to try and create an environment where they’re not faced with 40,000 items, they’re

faced with 150 that they do want.” Their call center optimization is only one of many changes Colliers is making to pass greater value on to their clients. Another is the total redesign of the company’s facilities management software, which governs day-to-day operations throughout the business. It manages a host of factors including workflow, procurement, risk management, contractor management and more. According to Bull, the change in platform for Colliers will allow them some exciting new capabilities. “[It] changes how we operate on a day-to-day basis because it’s optimized for use on mobile devices and now frees people up from their desks, enabling them to get out in the buildings in front of tenants and in front of clients,” Bull said. “It adopts things like producing QR codes for assets. So we can apply a QR code to an asset and someone can walk up to it, scan it, text it to a relevant person and straight into our facilities management platform where they can pull up information about that asset.” w w w. c o l l i e r s . c o m . a u

123


C O L L I E R S I N T E R N AT I O N A L

Andrew Bull

“So it really does change the way that we interact with the building environment and the users of that environment,” he added. The Continuing Company Standard of Excellence When looking at the attention Colliers pays to passing value on to their clients, it’s no wonder the company has a veritable treasure trove of awards to point to. According to a 2013 Business Review Australia article on the company, Colliers was honored at 124

July 2015

the CoreNet Sydney 2008 Summit as a prime example of a company “developing a competitive advantage through a sustainable talent management program.” The company is also routinely ranked in the Global Outsourcing 100 top businesses and the World’s Best Outsourcing Advisors by the International Association of Outsourcing Professionals. It’s an area Colliers has some experience in. “We’re going through a


CONSTRUCTION

procurement initiative at the moment which is really seeing us leverage our scale in the marketplace to the benefit of our clients, not only in dollar terms, but in terms of exposure to best practices and innovation,” Bull said. “And some of the things I’ve talked about wouldn’t be possible without finding the right partner, like in the call center, for example. “That’s not in-house. We outsourced that to E-Group and they have been absolutely fantastic. We’ve always outsourced our call center. I was fortunate enough to bring, I think, 75 percent of the call center team from one provider to E-Group. To put that into perspective, the average tenure for that call center team is over 10 years and that’s unheard of in a call center environment.” So with a host of loyal partners and a range of sophisticated updates coming soon to Colliers’ service offerings, the property management powerhouse looks well positioned for another 40 years of business.

“We’re moving from a very reactive approach to actually monitoring the building condition and trying to stop faults before they become tenant-related issues.”

Company Information INDUSTRY

Construction HEADQUARTERS

Sydney NSW, Australia FOUNDED

1976 EMPLOYEES

15,800 PRODUCTS/ SERVICES

Colliers International is one of the largest commercial real estate services in the world. Since its start in 1976, the company has grown to include 16,300 employees in 67 countries. With an emphasis on passing value on to their tenants while delivering dependable functionality at all of their facilities, Colliers is one of the most trusted names in the sector today.

– Andrew Bull, National Director, Engineering and Operations. w w w. c o l l i e r s . c o m . a u

125


Schindler Lifts Singapore:

Schindler moves 1 billion peo per day

One of the world’s leaders in moving people, Schindler Singapore is a provider of premium elevator and escalators products. Written by: Stephanie C. Ocano Produced by: Bryan Giles


ople

r Lifts


SCHINDLER LIFTS SINGAPORE

A

sia’s sixth busiest international airport—Changi Airport—handled more than 51.2 million passengers in 2012, and in 2017, that number is expected to increase to 82 million. Schindler Lifts Singapore—the international provider of quality elevators, escalators and moving walks—will be the first European brand to supply Changi with 58 lifts, escalators and moving walks that will move millions through its terminals. Established in 1975 to serve major businesses, Schindler has since become a global powerhouse with a team of dedicated employees, ensuring that projects are completed on time and under budget. “As with all major projects involving high-profile customers, it is about ensuring that we always keep in mind the client’s vision and expectation throughout the project,” said Steven Foster, Managing Director of Schindler Lifts Singapore, in a recent interview. Schindler manufactures, installs, services and modernizes elevators, escalators and moving walks for almost every type 128

July 2015

of urban infrastructure—from low-rise residential buildings to commercial and high-rise towers. Changi Airport is simply another name to be added to their extensive list of projects as the company continues to innovate design. Upcoming projects Project Jewel The Asia Pacific, including China, is the fastest growing part of the world in terms of infrastructure development. The rapid urbanization of the region—with rural communities transforming into cities—has created a need for more buildings and an effective way to handle the traffic. Schindler has stepped up to the plate to become the leader in project management and fulfillment. Developed from two of Singapore’s most respected names—Changi Airport Group and CapitaMalls Asia—Project Jewel is a unique design by one of the world’s leading architects that will integrate a shopping mall experience in an airport landscape. “The project is expected to be


CONSTRUCTION

Jewel project for Changi Airport

completed in 2018,” commented Foster. Solar Impulse The Solar Impulse airplane and its ambitious objective to fly around the world is a showcase of just what can be achieved in terms of green technologies if passion and belief are driving the innovation. Schindler is a proud global partner of Solar Impulse, sharing the same ambitions to deliver energy-efficient solutions using green technology. “Whilst it is unlikely that this project will allow for solar planes to be commercialized, the use of

solar energy and its applications for everyday life has been clearly demonstrated,” said Foster. Advances in technology Elevators remain to be the most voluminous of the products provided by Schindler, and the growth in residential and commercial buildings is a testament to this. But what allows for the expansive production? In short, the advancements in technology. Destination Control has been a part of Schindler’s technology strategy for 20 years, but the

w w w. s c h i n d l e r. c o m / s g / i n t e r n e t / e n / h o m e . h t m l

129


“As with all major projects involving high-profile customers, it is about ensuring that we always keep in mind the client’s vision and expectation throughout the project.” – Steven Foster, Managing Director


SCHINDLER LIFTS SINGAPORE latest generation of transit management systems has been produced by the company. “PORT Technology is the latest in Destination Dispatch Technology which optimizes the traffic flow in the building whilst providing personalized access and control systems,” explained Foster. “At its core, PORT uses sophisticated algorithms that run around the clock to ensure the optimal utilization of an elevator group. PORT eliminates elevator runs and random stops at numerous floors, and transports passengers swiftly and efficiently.” The basis of the system is that it groups passengers going to the same or nearby floors in the same elevator. This cuts down on the time needed to reach a destination as there are less stops along the way. In fact, the system is able to increase traffic efficiency by as much as 30 percent, as compared to conventional elevator systems. PORT Technology provides buildings with the ability to cleverly increase traffichandling efficiency, as evident in international landmark buildings

CONSTRUCTION

such as the International Commerce Centre in Hong Kong, HSBC in Singapore, Heron Tower in London and Barangaroo South in Sydney. “The response from customers who have moved from conventional lift system to PORT has been extremely positive,” said Foster. A unique advantage via green capabilities The design and industrialization of any type of product or technology has its own unique set of challenges—which makes it difficult to make a direct comparison. However, one thing that can be said about Schindler’s product design is that all new products have to have better eco-performance than their predecessor models. For example, the Schindler 7000 high-rise product line, which uses carefully selected materials in its design, was cleverly thought out right through to the end of its life cycle. The design of the new machines allows for the dismantling of all major parts and

w w w. s c h i n d l e r. c o m / s g / i n t e r n e t / e n / h o m e . h t m l

131


YOUR RELIABLE PARTNER IN ELECTRICAL AND COMMUNICATIONS INFRASTRUCTURE PRODUCTS Datwyler Cabling Solutions is an international provider of high-performance products and system solutions for electrical and communications infrastructures in public and commercial buildings and data centres and for FTTx networks.

Elevator Wire ropes and cable systems

Data networks Ready for 10/40/100GBASE-T

Safety cable systems

Smart Office cabling solutions

Datwyler Group T +65 6863 1122 F +65 6897 8885 E eythan.lim@datwyler.com; priecyllia.tio@datwyler.com www.cabling.datwyler.com

RCB Reg. No.: 197900001R GST Reg. No.: 1979-00001-R

FURNISH LIFT & ESCALATOR TO PERFECTION

Lifts & Escalators • Engineering Works Metal Fabrication Services Metal Working Machines & Services

27A, Jurong Port Road #01-17/01-25 Jurong Industrial Estate, Singapore 619101 Phone: 65 6261 9671 / 65 6261 9672 Fax: 65 6261 2268 Email: hianglim@singnet.com.sg

CSG Metalfab Pte Ltd is committed to delivering inspired designs that fulfil clients’ high expectations through collaboration and exceptional services. We specialize in Lift Interior Refurbishment & Renovation Works, Landing Finishes, Escalator Cladding Works.

CONTACT

Phone: +65 6710 5826, Fax: +65 6710 5827 Email: sales@csgmetalfab.com.sg


SCHINDLER LIFTS SINGAPORE

a compact design of components that uses less material. The low and mid-rise product lines have also made substantial progress. “Over the past 10 years, the environmental impact due to raw materials and energy consumption in these segments has been reduced by about 40 per cent,” said Foster. A good example is the Schindler 3300 AP elevator, which reduces the environmental impact of earlier models by about 40 per

CONSTRUCTION

cent through energy savings from a more energy-efficient drive system and smart control that enables standby mode for inverter, controls and lighting. “Moreover, the materials that we use in this product are significantly lighter and components are smaller, as compared to its predecessors, requiring less energy to move the elevator,” added Foster. Schindler 3300 AP uses Schindler Traction Media (STM) technology which

w w w. s c h i n d l e r. c o m / s g / i n t e r n e t / e n / h o m e . h t m l

133


SERVICE LIFTS

SKG SERVICE LIFTS is a manufacturer of service and goods lifts for over 60 years with experience in the Australian market for over 20 years. With our partner Lift–Mech Engineering, we would like to offer service lifts and support to the whole continent.

VANDER TECHNOLOGY PTE

YOUR BEST BUSINESS PARTNER FOR ELEVATOR FIXTURES & SOLUTIONS

LED FLOOR POSITION INDICATOR, LCD DISPLAY SCREEN, VOICE SYNTHESIZER, INTERCOM SYSTEM, ENCODER BOARD, ETC.

Oxley Bizhub, Ubi Road 1, Block 67, #09-10 Singapore 408730 p (65) 9182 3357 f (65) 6242 0932 e edward.teh@vander.com.hk

LIFT-MECH ENGINEERING is SKG's Asia Pacific Representative Office. Strategically located in Singapore, we provide strong and timely support to clients in the region. 52 Ubi Ave 3 #04-47 Frontier Singapore 408867 Tel: 65 6742 7969 Email: info@lift-mech.com Fax: 65 6742 7809 Web: www.lift-mech.com

delivers significant space savings since the compact design of its gearless machine requires smaller shaft space. Its machine room-less (MRL) solution reduces building construction cost, time, manpower and material to build the elevator machine room. “Other important green features include careful building traffic planning to achieve a balance in terms of traffic increases versus energy consumption, Power Factor One converters that feedback


CONSTRUCTION

energy generated by lift to the building power grid, permanent magnet motors, gearless drives and energy-saving modes on escalators including automatic start and stop control or automatic two-speed control—varies the escalator speed according to the passenger flow,” said Foster. “These modes are enabled by the presence or absence of passengers; hence energy can be saved during non-peak hours.” Looking ahead As space becomes even more of a premium in South East Asia, and in particular Singapore, the need for efficient dispatching of passengers will become even more necessary. “Destination-control systems in commercial buildings will become standard and over the next five years,” said Foster. “In addition, as the demand for greener buildings increases and the environment is ever more in the public eye, the need for energy-efficient mobility systems will be paramount. Furthermore, the emergence of digital technology as a business tool to improve efficiency and deliver on increasing customer satisfaction will play a key part in the industry dynamics.” “Schindler sits in a strong position and has been a pioneer in both fields and is poised to take advantage of these evolutions,” concluded Foster.

Company Information INDUSTRY

Construction HEADQUARTERS

Botany, Sydney NSW Australia FOUNDED

1975 EMPLOYEES

54,000 Employees Worldwide PRODUCTS/ SERVICES

Schindler Lifts Singapore is the Singapore operation of the Switzerlandbased Schindler Group, a leading global mobility provider with approximately 54,000 employees operating in more than 100 countries. Schindler supports sustainable urban development with safe, reliable and ecologically sound mobility solutions.

w w w. s c h i n d l e r. c o m / s g / i n t e r n e t / e n / h o m e . h t m l

135


Horizon Power:

Horizon Power looks to the future Managing Director Frank Tudor discusses new projects and now Horizon Power fits into the changing landscape of energy in rural and regional Western Australia Written by: Sasha Orman Produced by: Vince Kielty


HORIZON POWER

H

orizon Power is a vertically integrated, state-owned utility working in a unique space—the regional and remote areas of Western Australia, from the Kimberley, Gascoyne, and the Pilbara, to the Mid-West and southern Goldfields regions. “Its scope of operations is very large— we operate across 2.5 million square kilometres, about 1/3 of the landmass of the US,” said Frank Tudor, Managing Director. “But we only have 100,000 people that we supply spread across 40 independent systems, including the North West Interconnected System 138

July 2015

and various towns and communities.” Tudor has been with the utility in various roles since its inception in 2006 when Horizon Power was formed after the disaggregation of the state-owned Western Power. As Managing Director since 2010, he has brought his years of experience in energy, oil and gas, and foreign affairs to help navigate the business through new growth and new directions in a rapidly changing industry. Key projects of the present for the world of tomorrow “Our focus in the next five to


ENERGY

10 years is to determine how we will play a role in the new distributed energy world alongside maintaining the grid. The network will become progressively more intelligent in hosting advanced meters—which we’re in the process of rolling out to our communities, including all manner of sensors/switches,” said Tudor. Horizon Power is engaged in a partnership with Electrix and Silver Springs Network on a major investment in advanced metering infrastructure. Using smart grid technology, the company plans to better monitor its network integrity

in real time and use advanced analytics to keep equipment in top working order. It’s just one of several investments that Horizon Power is making to increase its capabilities and provide the best service possible —from power stations in the Mid-West, to network projects supporting iron ore and liquefied natural gas (LNG) industries in the Pilbara region of Western Australia. “Out of the Pilbara, Australia is exporting more than 700 billion tonnes of iron ore. It’s also host to two producing LNG plants and two other LNG projects that will be commissioned shortly. It is a

w w w. h o r i z o n p o w e r. c o m . a u /

139


HORIZON POWER

ENERGY

world class resource area for iron ore and natural gas, and a hugely important part of the Australian economy,” said Tudor. Horizon Power is involved in several projects in the Pilbara, including increasing the resilience of the energy grid, supporting the mining industry’s residential base, and the construction of a 100 megawatt temporary power station built in conjunction with GE’s alliance partner American Project Rentals (APR). “That power station was delivered on-budget without compromising security of supply,”

said Tudor. “The Pilbara power project is interesting because we built permanent infrastructure that will initially support APR’s transportable generators for a period of approximately two years. APR will then take those generators and deploy them elsewhere. We then plan on working with a company out of Canada called TransAlta to connect to the permanent 180 megawatt power station, again using GE machines. That will be the first combined-cycle gas-fired power station in the Pilbara.”

SUPPLIER PROFILE

ELECTRIX SECURES HORIZON POWER CONTRACT

Electrix is proud to support Horizon Power in the rollout of the Advanced Meter Program. Electrix has made a firm commitment to Western Australia and has a solid base of both people and equipment on the ground in the state to ensure it can deliver on its service promise to customers. Electrix offers owners of electricity distribution networks a wide range of experience in providing asset management, maintenance and construction services for overhead and underground assets. Electrix values innovations that add-value to clients, assisting them to effectively manage the safety and reliability of their networks while maintaining the balance between operational, maintenance and capital requirements. Electrix is recognised as a leading provider of network inspection services with customers relying on Electrix to inspect more than 300,000 poles and related assets per annum to ensure the safety, reliability and durability of their networks. For more information please contact: Australia: Ian McLeod Phone # +61 3 8698 2200 Address 3/153 Bertie Street, Port Melbourne Victoria 3207, Australia

Website: www.electrix.com.au

w w w. h o r i z o n p o w e r. c o m . a u /

141


100 YEARS

POWERING PROGRESS

TransAlta is powering industry in Australia. We’re the largest behind-the-fence provider of electricity in Western Australia with 575MW of generating capacity in operation or under construction. We supply our customers with safe, reliable energy and are looking for new opportunities to power progress.

www.transalta.com


HORIZON POWER Making plans for the industry’s future “We need to be as any energy company across the planet needs to be: thinking about the future of the industry,” said Tudor. With this in mind, Horizon Power is taking potential industry trends and drivers of change into serious consideration—particularly the role that renewable and photovoltaics (PV) will increasingly play both at a residential and utilities scale level. “The take-up of renewable and PV across the planet has been extraordinary,” said Tudor. “China has been focused on cleaning

SUPPLIER PROFILE

ENERGY

up its environment, and its PV production has certainly driven down costs—and it has made huge inroads into the makeup of energy production in Australia. In Perth we have some 340 megawatts of residential PV installed, so we are getting close to penetration levels of 20 per cent. In other parts of the country—for example parts of Brisbane and Adelaide—the penetration is approaching well over 30 per cent. I think across the world, we are leading the take-up of residential PV.” Of course this change leads to the inevitable question: what does this

TRANSALTA

TransAlta Energy Australia is an experienced electrical operator serving large industrial customers in Western Australia. The company is the largest behind-the-fence supplier of electricity in the state with 425 MW of generating capacity and 150 MW of additional capacity under construction. Doubling the size of its business in the past three years, TransAlta has invested close to a billion dollars in assets with stable long-term contracts. Since 2011, the company has acquired the 125 MW Solomon power station, built the 270 km Fortescue River Gas Pipeline with its partner DBP Development Group (DDG), and is currently constructing the new 150 MW South Hedland power station, which will be the most efficient combined-cycle power plant in the region. TransAlta continues to grow in Western Australia, building on two decades of providing safe, reliable power in the region.

Website: www.transalta.com

w w w. h o r i z o n p o w e r. c o m . a u /

143


HORIZON POWER

mean for the industry? “In essence, the physical size of traditional utility businesses is probably shrinking,” said Tudor. “So one of the issues for utilities is how do you continue to maintain relevance and grow your business when aspects of your traditional model look like they are shrinking? That poses a lot of questions in terms of the competency you need, and how you actually position and restructure a

business to be able to develop a new business arm while still managing your existing core business.” These issues are very much in play for Horizon Power, putting the company in the position of providing its core business to consumers whilst moving into a strong position to continue delivering in the future when the energy industry starts to look very different.

SILVER SPRING NETWORKS

SMART GRID NETWORKS TODAY. EVERYTHING NETWORKS TOMORROW.

Silver Spring Networks delivers the leading solutions and networking platform used by utilities worldwide to support multiple smart grid applications on a single, unified network. With over 20 million homes and businesses connected worldwide, including over 2 million in Australia, Silver Spring is the leading provider of smart grid and advanced metering systems. To learn more, please visit www.silverspringnet.com.


ENERGY

“I think people liken it to the Kodak moment that has seen other industries besieged by destructive technology, for example when we went from film to digital or mainframes to PCs.” said Tudor. “In our industry the question is when do we reach the tipping point? We’re moving from distribution by centralized power stations towards an interactive network for customers, where

connected customers are producing their own electricity and becoming an integral part of the grid. Any evolution of that looks and feels like a very different system than the one that we operate today.” Setting new benchmarks for success For the last couple years Horizon Power has been in the midst of a transformation, inspired by the

w w w. h o r i z o n p o w e r. c o m . a u /

145


HORIZON POWER progress made by regional coops with similar business models in the United States. “We did a pretty extensive benchmarking exercise against the co-ops— making allowances for differences in jurisdictions, regulations, and various things that exist at a business level between the US and Australia—and we learned a lot of lessons that we could apply,” said Tudor. While Horizon Power set ambitious goals, it is already making significant progress in achieving them—among other things, the company is already 70 per cent of the way toward a target to reduce discretionary costs by half. “So when you ask what our priorities are right now, it’s to continue to deliver on the target we set ourselves,” said Tudor. “It’s all about reforming our core business, incorporating the lessons that we learned from the benchmarking, and driving those lessons through some 40 separate initiatives that we’ve allocated to our senior management staff across the business.” A partner in energy One crucial trait that serves to set 146

July 2015

Horizon Power apart as an energy provider is its understanding of and proximity to the communities it serves. “Our vision from inception is to be your local energy partner,” said Tudor. “We’ve got a physical presence in the regions that we service—we have people on the ground, interfacing and responsible for the management of assets and our customer base locally. When you think about the sort of regional communities that we service, this is a key attribute that is made more important as other businesses withdraw their services. It also happens to be the most efficient and effective way of managing our regional assets and customers. According to Tudor, having people on the ground in rural and regional areas helps customers gain a better perception of Horizon Power as a true part of the community, which is especially vital in a world where consumer relationships with energy are changing. “People can access us, and talk to us—our people meet in the towns, and that in itself reinforces our sense of community and obligation,” said Tudor. “We’ve got to make sure that


ENERGY

people are aware of what we’re doing and that we’ve got reliable power and affordable power. So we’re very much part of the communities, and I think that we’re well placed to work through the future with customers, as they become more active in the provision of their own electricity.” Looking ahead Where does Tudor see the energy industry in the future? “I see the industry in a state of flux—I don’t look at any jurisdiction anywhere on the planet to see that people have got it right, and I don’t think any company working in any of those jurisdictions has got a clear and certain way forward to success,” he said. “They’re all in their own different ways looking at distributed energy and assessing what they should do in that space. Some have gone to the extent of splitting their businesses in two, so that they can aggressively follow a distributed energy path without worrying about any decisions they make in that path having a negative impact on their existing business. Then you’ve got others extending and defending the traditional business models.” But that state of flux is not a bad thing. To the contrary, it means that the industry is in an exciting time for the more adventurous and adaptable. “Having said all of that it’s a really interesting place to be,” he adds. “I think that—if you take it as such—it’s full of opportunity.”

Company Information INDUSTRY

Energy HEADQUARTERS

Karratha, WA, Australia FOUNDED

2005 PRODUCTS/ SERVICES

Horizon Power is a state-owned commercial corporation providing energy resources to 100,000 residents and 10,000 businesses across regional and remote Western Australia.

w w w. h o r i z o n p o w e r. c o m . a u /

147


Damco Vietnam & Cambodia:

Leading the way in the supp chain industry

Damco Vietnam & Cambodia is one of the world’s leading freight forwarding and supply chain management service strategic planning and a focus on the customer.

Produced by: Daniel Kadar Written by Cutter Slagle Interviewed by Laura Clo


ply

g providers of es, thanks to

ose 149


DAMCO VIETNAM & CAMBODIA

Distribution Center Inauguration in Hai Phong City, North Vietnam

W

ith more than a century of experience, Damco has successfully become one of the world’s leading providers of international freight forwarding and supply chain management services. No matter where customers are located, Damco can provide transportation and logistics solutions that support how any specific firm chooses to do business. Key markets and strategic planning According to Managing Director 150

July 2015

Marco Civardi, Damco Vietnam & Cambodia (Damco) has strategic plans in the works for each of its key markets. This includes an ongoing, intense development plan with key trading partners such as the United States, Japan, China and Europe, whereby the aim is to grow air freight and ocean freight volumes at a much faster pace than the pace of local market in Vietnam. It already occurred a substantial increase in volumes particularly in the USA trade-lane with a focus on the west and east coast, more specifically Chicago, New York and Los


S U P P LY C H A I N

Angeles. Given the current company exposure on fashion and retail clientele, the possible upsides from TPP agreement can definitely boost further Damco’s market penetration on this trade-lane. In Europe, Damco’s main trading partners are Germany, the United Kingdom and Benelux, the main mission being to capitalize further on the backdrop of the possible FTA agreement. The International Graduate program Damco’s International Graduate

Program (DIGP) takes approximately two years and is used as a flagship entry level course. During this period, applicants become more familiar with on-the-job learning techniques and gain exposure to different company’s functions. Besides attracting ambitious and talented individuals, this program helps Damco to develop international logistics professionals who are driven, collaborative, and who will ultimately support the company’s growth. The DIGP is a unique selling point that contributes to w w w. d a m c o . c o m /

151


Fully Integrated End-to-End Supply Chain Solutions Provider


DAMCO VIETNAM & CAMBODIA

S U P P LY C H A I N

differentiate Damco from other peers in the industry. “The International Graduate program is a key training program for us,” said Mr. Civardi. “For Damco, talent management is an absolute must-win battle,” he confirmed, explaining that, “We put a lot of focus on promoting from within and on creating opportunities for our people. Ensuring senior management focus on the process to identify and nurture our many local talents is of vital importance for the short-term success and long-term sustainability of the organization.”

company’s customers are vendors or shippers who export substantial volumes of goods mainly to Europe and the United States. In an effort to foster good working relationships, Damco systematically runs vendor workshops for these global customers whereby all vendors are put together in the same room and various requests are discussed, including specific aspects in which Damco can help to increase performance for deliveries. These workshops have been put in place to help ensure that the customer’s voice is completely heard and addressed with vendors. Pragmatically speaking, the Maintaining a healthy relationship shipper’s satisfaction (measured with Stakeholders by the SSS, or Shipper Satisfaction Damco is known for mainly Survey) is determined and feedback collaborating with two-tier firms is given to help create a culture of such as suppliers and customers. continuous improvement. A considerable portion of the

“Damco has historically maintained a unique selling point based on our exceptional people and our innovative supply chain management products.” – Managing Director Marco Civardi w w w. d a m c o . c o m /

153


DAMCO VIETNAM & CAMBODIA “Proactive vendor interaction is the key and we make sure that we are acting in a very collaborative way,” Mr. Civardi said. To further enhance the relationship with local trucking companies and other local suppliers, a day has been organized during which selected trucking companies receive a refresher course on Damco policies and procedures and corporate values. “When it comes to building a relationship with trucking companies, it’s very important to consider it as a partnership,” Mr. Civardi said. In relation to the approach toward local clientele, Damco has a dedicated and professional management system whereby sales staff specializes in specific industrial sectors or trade-lanes. “We have a very tailor-made approach,” said Mr. Civardi “It’s vital that when a Damco sales representative interacts with a customer, he/she is familiar with customer’s product, its industry dynamics and relevant aspects of the particular trade-lane.”

154

July 2015

Damco Vietnam and Cambodia’s technological advancements in the industry In order to stay ahead of the game, Damco has employed technological advancements such as “myDamco,” is a system that is used to keep track of orders from clients. The system is a service offering that allows for the maximum degree of visibility, as it can successfully drive online booking, online shipping documents (e.g. commercial invoices, packing lists, forwarder cargo receipts, etc.) and online communication. In addition, the company utilizes Dynamic Flow Control, which automates planning and execution of the customer supply chain. Technological advancements such as “myDamco” help Damco stand apart from its peers. “The system is very user-friendly as well as much more advanced than the traditional e-book or e-SER type of interaction with vendors and clients,” said Mr. Civardi. Mr. Civardi believes that due to the constant focus on continuous improvement, Damco can perform


S U P P LY C H A I N

better year-over-year by leveraging its lean set-up and exposure to high growth industries such as fashion, retail and technology, to name a few. In general, supply chain management tools are designed to be the best possible fit for Damco’s customers. “Everything we do is driven by the customer’s voice always being the centre of our attention,” Mr. Civardi added.

services) and contract logistics in order to increase its market share and overall volume of services. “Damco in 2020 will be a firm even more lean and balanced than today, as we aim to have equal weight in air and ocean business as we have in supply chain management products today. To progress on this route, VAS and contract logistics are key domestic products which will help to enable our strategy of serving What the future holds customers from an end-to-end The future looks very prosperous for perspective,” said Mr. Civardi. So far, Damco. The company has a five-year the company is managing this goal development plan that will expand quite well. into areas of air, ocean and domestic “It’s very important for us to crossservices including VAS (value-added sell air and ocean services to our

Trucking and Air Service w w w. d a m c o . c o m /

155


DAMCO VIETNAM & CAMBODIA

supply chain management clientele. Having already proven ourselves capable of managing complex supply chain requirements—and

having earned solid trust based on these capabilities—we have fortunately witnessed rapid growth with our supply chain management

Managing Director Marco Civardi believes that due to the constant focus on continuous improvement, Damco can perform better year-over-year by leveraging its lean set-up and exposure to high growth industries such as fashion, retail and technology. 156

July 2015


S U P P LY C H A I N

product and volumes; therefore, we have more than one reason to believe that our future looks bright,” Mr. Civardi said. The overall need to diversify with more intense focus on air and ocean is two-fold: “Damco has historically maintained a unique selling point based on our exceptional people and our innovative supply chain management products. Looking forward, we are convinced we have what it takes to reach the same level of excellence in air and ocean, as these businesses are complementary in nature to our supply chain management clientele who are constantly seeking ways to engage us from an end-toend perspective—and based on the significant progresses occurred lately, we’re well on track!” he added. Looking forward, by expanding into these emerging markets, Damco expects to have a larger share of the import business and to target growth from the technology industry and other sectors, including manufacturing. Many of the firms selected for growth are in Vietnam, the location selection being primarily due to the still substantial labor costs arbitrage compared to. China. In an effort to predict key trends for supply chains in general, Mr. Civardi believes that there will be even more focus on emerging markets as key growth propellers, and that China will continue to play a very important role in the region.

Company Information INDUSTRY

Supply Chain HEADQUARTERS

The Hague, Netherlands FOUNDED

1905 EMPLOYEES

1100 PRODUCTS/ SERVICES Damco Vietnam & Cambodia manages and serves some of the most advanced supply chains in the world for a diverse range of industries. For more than 100 years, Damco has provided customers with transportation and logistics solutions that support the way customers want to do business, wherever they are in the world. With a relentless focus on simplifying complex supply chains, Damco uncovers efficiency improvements that enable our customers to reduce their inventories, cut operating costs, and achieve significant short-term savings for longterm competitiveness.

w w w. d a m c o . c o m /

157


A.H. Beard:

A.H. Beard Puts Family First

A family-owned company since 1899, A.H. Beard prides its longevity, innovation and a family-like working environment Written by: Eric Harding Produced by: Rob Benson


self in quality, t.


A.H. BEARD

Garry and Allyn Beard

What started off as a bet between two brothers nearly 100 years ago has transformed into one of the most prestigious, successful and well-respected bedding companies throughout Australia. A fourth generation family business since it was established back in 1899, and now moving to it’s fifth generation, A.H. Beard has been Australia and New Zealand’s premier manufacturer of quality mattresses and bedding since 1899. After the original factory burned to the ground in 1926, Albert Henry Beard chose to continue making beds, while his brother made a bet 160

July 2015

that he couldn’t produce seven beds in a week. “It became a challenge between our grandfather and his brother,” said Allyn Beard, director at A.H. Beard and grandson of Albert Henry Beard. “It’s really ironic because now we make between 6,000 and 10,000 beds in a week during peak production. So the business has grown both in volume and average unit value quite dramatically over the years.” Family values The active involvement of the Beard family with its retail


H E A LT H C A R E

John Howard visit 2013

customers facilitates great communication, and because of that, they’re better equipped to understand the needs of the consumer. As a company that has been a proud licensee of the Australia Made logo for many years, people know what they’re getting when purchasing a bed from A.H. Beard. “It’s about longevity,” Beard said. “When you deal with somebody for a long period of time, you get to understand what they look for in a product and what pushes their buttons. Every retail customer is different, so we are able to

customise our offering to maximise our relationship with each retail customer. We become more meaningful to them than the other guys, who are selling the same product in every shop in town.” But nearly just as important as a relationship with their customers is the rapport built up with their suppliers. Due to A.H. Beard’s long-term existence in the industry, it has been able to build a strong association with its suppliers going back many, many years. This strong relationship has helped A.H. Beard stay a step ahead in innovation. w w w. a h b e a r d . c o m /

161


Specialized in the manufacturing of Mattress Textiles, Bekaert Textiles is active worldwide with sales and dedicated production sites in 9 separate locations. Bekaert Textiles is recognized as the quality, service and innovation leader in its industry with its headquarters located in Waregem (Belgium). Our products cover tens of thousands of new beds and mattresses every day, from New York to Sydney, from Helsinki to Cape Town. The company and its high-quality products benefit from increasing demand for comfort and growing environmental awareness. To complement our product line, in Australia we are active in the upholstery, window coverings and health care fabrics for the local and export market.

Bekaert Textiles - Australia 195 Abbotts Road Dandenong South, VIC 3175 Australia T +61 3 9799 1202 F +61 3 97991019

BEKAERTTEXTILES.COM


A.H. BEARD “We rely on them to bring new products and new materials that assist in making our products better, more competitive and more marketable,” said Beard. “Hopefully if we’re a meaningful partner to them, they’ll come to us first, and that’s what usually happens”. “We have accessibility, so if they discover something that will be beneficial to our business, they’ll call and speak to us directly. That allows us to be an innovator in the market.” Production When it comes to the actual beds, A.H. Beard prides itself on having

H E A LT H C A R E

a wide variety. Not every mattress is right for every person, but that’s the beauty of the company—it aims to provide different products for different consumers. Each individual has a different set of needs in order to reach maximum comfort and get the best night’s sleep possible. “Beds are quite objective,” said Beard. “What’s right for one person could be wrong for the next. There is no one bed that will satisfy everybody. There are different weight distributions for different people, and you’ve got different habitual sleeping positions, plus, not

SUPPLIER PROFILE Employees: Global ≥ 1,600 - Australia 110 Established: Belgium 1892 - Australia 1955 The Bekaert family started the company in Flanders, Belgium in 1892, specializing in the manufacture of mattress textiles. Bekaert Textiles, still has its headquarters in the Flanders. Bekaert Textiles recently became part of “Franz Haniel & Cie. GmbH” a traditional – steeped German family-equity company, founded in 1756, who will support our ambitious global growth plans. Global growth is assisted through population growth in the emerging regions and in the more mature markets, the company and its high-quality products benefit from an increasing demand for comfort enhancing performance textiles and the growing environmental awareness. The rising standard of living in these regions is a particularly important driver of growth. Management: Decorative Fabrics, (Mark Lennox), Deco Sales Manager / Mattress ticking fabrics Manager (Bart Dehaerne), National Sales Mangers / General (Luc Deleu), Managing Director Website: bekaerttextiles.com

w w w. a h b e a r d . c o m /

163


Over 50 years of experience and in its third generation of family involvement, we are committed to setting the standards in quality and service. - PROUD PARTNER WITH A.H. BEARD -

Founded in 1963, Schaerf Woodworking Industry is a long established Australian family owned and operated business. We are the leading supplier of legs, castors, glides and accessories to the bedding industry. We manufacture a range of world-class products to satisfy the complete needs of bedding and furniture manufacturers. Every product in our portfolio is carefully designed, engineered and manufactured to exacting standards. Our dynamic team is passionate and knowledgeable about our products and the industry, providing high levels of service throughout Australia. The Schaerf trade mark stands for excellence.

57 Bond Street, Ringwood VIC 3134 Email: info@schaerfwoodworking.com.au Web: www.schaerfwoodworking.com.au

Call: +61 3 9879 5312

Richdale Plastics RIGHT FIRST TIME EVERY TIME!

A solely Australian owned and operated plastics company, with over 20 years experience in supplying the agricultural, packaging and food manufacturing sectors. Our professional team delivers high quality products, service and the latest in plastics technology.

www.richdaleplastics.com.au Ph: +61 3 9583 6311 Fax: +61 3 9585 1711 Email: info@richdaleplastics.com.au


A.H. BEARD to mention, customers with different medical requirements.” Whether it’s a King Koil, Domino, Nature’s Rest, Health Rest, or iComfort, there are a wide range of foam and innerspring systems and constructions that appeal to every situation. Beard shared his own personal experience of having undergone a spinal fusion operation, and said that his preference was a mattress with talalay latex inside, however he acknowledged that what’s right for him could be wrong for the next person. Part of providing the right mattress to the customer is being aware of advances in technology. “We’re always trying to bring new trends and new technology to the market first,” Beard said. “There’s also quite a diverse range of price as well, just as there is in cars. Just like there are different cars for different segments of the market, there are different beds for different segments of the bedding market as well.” The company has implemented its Six Week Sleep Challenge, which is about educating people who may be sleep deprived or are not getting quite as good a night’s

H E A LT H C A R E

sleep as they could be. Those who participate can log in on their smartphone or computer, and input their sleep details from each night. Every week, A.H. Beard checks in on their progress and gives them new sleeping tips. Participants are currently in the third round of the sleep challenge, with the next round coming in October. “There’s a vast shortage of knowledge about sleep, but people’s awareness of the importance of sleep is growing,” Beard said. “We believe sleep is equally important as diet and exercise. If you’re not getting quality sleep, it will obviously affect your well-being, as well as your performance at work and in sports. It can also lead to weight gain and obesity.” The sleep challenge isn’t just for people who purchase beds from A.H. Beard. Anyone can sign up, and it’s completely free. Beard said the company has had tremendous feedback from those who have participated, as they’ve played a role in improving their sleep and their lives. The next step for the Six Week Sleep Challenge is moving on to China. w w w. a h b e a r d . c o m /

165


A.H. BEARD International expansion As one of the few exporters of any manufactured product into Asian markets, Beard said it’s very exciting as an Australian company since Aussies are often challenged by imports coming in from China at cheaper prices. A.H. Beard is one of the unique Australian companies that actually exports manufactured products to China, which makes him especially proud of what they’re doing. “Our workforce is proud to put their name on a product and ship it to China,” Beard said, “and it’s great to go over there and see your product with the Australian Made logo proudly displayed”. “The Australian bedding market is

a very mature market. There aren’t too many countries in the world that Australia can export products to, because they are bulky and come in various different sizes. You can certainly manufacture beds a lot cheaper in lower-cost countries.” According to Beard, one of the unique dynamics today is with the Chinese becoming more successful and more affluent, they’ve developed a preference for buying imported products—including beds. Fortunately for A.H. Beard, Australian Made products are not only viewed as very good quality, but also very natural as well. The country is often associated with nature, which has been found to be relevant

“Beds are quite objective. What’s right for one person could be wrong for the next. There is no one bed that will satisfy everybody.” – Allyn Beard, Director A.H. Beard

166

July 2015


H E A LT H C A R E

when choosing a bed. “There’s a small, but growing market for Chinese willing to consider or hopefully investing in Australian-made products,” Beard said.

Company Information INDUSTRY

Staying on top of the industry A.H. Beard isn’t among the industry’s leaders in innovation by accident. Beard said he and his team essentially travel the world looking for new innovations, often attending trade shows in the United States, Europe and Asia in an attempt to stay one step ahead. “One of the realities when you’re in a market the size of Australia is somebody comes up with something new or revolutionary in another part of the world, and quite often, Australia is not on top of their list as a target market,” said Beard. “If we just waited here for it to get to us, it would take a long time and someone else might find it before us.” With a corporate vision shared by the family, which includes his brother Garry, Allyn Beard believes the company is based upon having a long-term plan for the business that can continue to excel the same way it has since 1899. “We’ve been fortunate to attract very highcaliber people to our organisation, as with any organisation it is only as good as the people who work within it,” Beard said. “We see it as a strong business that still has great potential.”

Healthcare HEADQUARTERS

Padstow, NSW, Australia FOUNDED

1899 EMPLOYEES

200-500 PRODUCTS/ SERVICES

For more than 100 years Australia’s A.H. Beard has been the premier supplier of best-in-class luxury mattresses throughout the world. Expertly upholstered in luxurious knits and organic, wool with full outer tufting, A.H. Beard is the ultimate luxury mattress. Premium gel-infused memory foam, latex and the advanced “Reflex” innerspring system deliver luxurious comfort and near-total freedom from motion transfer disturbance.

w w w. a h b e a r d . c o m /

167


Bombardier Transportat

Bombardier plays central role the revitalization of Australia’s

While the task before them is daunting, Bombardier and th Australian Government are planning to provide cutting-edg mobility solutions for the next phase of increasing populat growth and congestion across the nation. Written by: Ian Hanner Produced by: Daniel Kadar


tion:

e in s rail

he ge tion

169


B O M B A R D I E R T R A N S P O R TAT I O N

Mock Up of QNGR vehicle at Eagle Farm

Response to population growth The world’s population has increased dramatically since the beginning of the last century, increasing from fewer than 2 billion in 1900 to 7.2 billion in 2014. Aside from the increased resource drain that more people ensure, there’s the other factor of population growth that is inescapable, though solvable congestion. Bombardier Transportation wants to answer the calling by providing the next generation of mobility solutions. In tandem with multiple private sector entities and with the backing of the Australian government, the more 170

July 2015

than-century old company is poised to ensure reliable transport for the years to come. All around the world, goods need to be transported to and fro in not only safe, but ultimately reliable, ways. While automobiles and paved roads have allowed for greater geographical connectivity than ever before, they’re limited a great deal by the number of people on the roads and driving habits. For traveling over long distances, airplanes remain the unrivalled solution. But the large swaths of land needed to put an airplane down, and the heavy fuel


S U P P LY C H A I N

Inside mock up of QNGR vehicle - restroom facilities

consumption that this mode of travel demands make it obviously impractical for commuter traffic. Interestingly, it’s a return to a technology older than both of those that shows the greatest promise: rail. Long neglected as the usefulstill, but not as glamorous transport of yesteryear, the commuter rail industry is poised to make real growth over the next decade or two in nearly every country in the world. One such endeavor that could serve as a beacon for future projects to look to for guidance is being carried out in Australia. In May 2015, the Australasian

Railway Association (ARA) published the results of the Infrastructure Australia Audit Report, which found the ocean-lined nation woefully unprepared for the challenges of growing populations. ARA Interim Chairman Bob Herbert said, “Rail infrastructure underpinning passenger transport must be in place to meet population growth which, according to the audit, will swell demand for public transport by 55 percent in Sydney, 121 percent in Melbourne and around 89 percent in other capital cities.” While the results of the audit w w w. b o m b a r d i e r. c o m /

171


For perfect clear vision.

Besides outstanding quality and reliability, product innovation plays a significant role for our company. Thanks to our company-owned developmental team, motivated staff and state-of-the-art manufacturing facilities, Glas Trösch AG Rail counts as one of the most competent suppliers worldwide in the field of high-end su windscreens and cabin glazing for the most important train manufacturers.

Glas Trösch AG Rail

Unterdorf 45, CH-4937 Ursenbach Phone: +41 62 957 91 00 Fax: +41 62 957 50 80 Email: rail@glastroesch.com Web: www.glastroesch.com/rail

Glas Trösch AG Rail is proud to be supplier in cabin glazing for Bombardier Transportation.

77 years of experience... provide evidence that offering the engineering, manufacturing, delivery as well as tailor made aftermarket services for reliable state-of-science glazing solutions are a key to long-term success. With that in mind, it is no surprise that our light-weight window systems meeting the highest international standards have been chosen for the fantastic all-new QNGR fleet. Maximum protection vs. minimum weight: opposing attributes which are both met at the same time by the excellent products of Flachglas Wernberg.

“I think all of the parties involved in this project are very keen to demonstrate that our PPP model can be successful for such a large-scale new train procurement process.” – Paul Brown

FLACHGLAS Wernberg GmbH - Germany Phone +49 9604 48-0 - www.flachglas.de


B O M B A R D I E R T R A N S P O R TAT I O N present an image of a worrisome future, the Australian government, in partnership with the private sector, is already developing the transport infrastructure to keep pace. The Queensland New Generation Rollingstock (QNGR) project. “This project is a game-changer for Bombardier in Australia in terms of both size of the project and complexity,” said QNGR Project Director Paul Brown. “It’s a $3 billion project which is seeing us deliver 75 new trains for Queensland and involves the construction of a new depot as part of that contractual obligation. Equally, we have the 30 year maintenance deal as part of a PPP contract.” Bombardier is largely leading the development of the QNGR project through Qtectic, the trading identity of a consortium of companies including Bombardier Transportation, John Laing, Itochu and Uberior. With this venture, Australia is investing in its transportation future, specifically in Queensland. But since this project is to serve as a beacon, it has to be done

S U P P LY C H A I N

right, especially as a public-private partnership (PPP) model. This model presents a range of longterm challenges that are often completely absent in projects of this nature, such as a three decadeslong obligation for Bombardier to maintain the health and functionality of the systems. “Managing the complexity of a PPP contract is a key ability that we believe we have here at Bombardier, particularly in terms of our systems division,” Brown said. “Australia seems to be much more in favor of the PPP model and it would appear to be much more successful here than in other parts of the world— certainly in rail.” He added, “I think all of the parties involved in this project are very keen to demonstrate that our PPP model can be successful for such a large-scale new train procurement process.” Benefits for Australia These 450 carriages, which are designed by Bombardier with input from universities in Queensland, will be manufactured at Bombardier’s facility in Savli, India. The trains will w w w. b o m b a r d i e r. c o m /

173


B O M B A R D I E R T R A N S P O R TAT I O N

Inside mock up of QNGR vehicle

carry passengers at a top suburban speed of 100 kilometers per hour and a top interurban speed of 140 kilometers per hour. Bombardier’s trains will service every line in South East Queensland. There’s also the matter of job creation. Given that many 174

July 2015

components of this project as possible are being sourced locally in Australia, it’s difficult to accurately measure the number of jobs an undertaking like this will create. However, many of these jobs would be, in theory, temporary. That’s not such a bad thing, with


S U P P LY C H A I N

countless examples of temporary labor markets lifting people out of chronic unemployment. However, what really matter are the long-terms jobs that this project will create. Bombardier estimates that once all is said and done, the operation of the trains and the new facility will easily create permanent jobs for more than 150 individuals. Brown also points to the tertiary roles that this development would create. “In the wider arena, the supporting jobs that this project will bring, such as business at the local coffee shop or maintenance contracts that we’ll need to place for cleaning and maintenance of the depot, can easily create upwards of another 500 jobs,” he said. This is extremely good news for a region that has seen job growth slow to a trickle. So with economic opportunities abounding, and prudent early planning promising to mitigate challenges for Australia down the line, it’s hard for Brown and the rest of Bombardier not to be optimistic. “The railroad sector itself is a very exciting sector to be in right now,” he said. “It ticks all the boxes if you look at what’s happening in the wider economic sphere in terms of population growth, increased urbanization, environmental pressures for municipalities and more. Rail, as a solution, ticks all those boxes, so you know there’s continued forecasted growth in that market. Bombardier and Australia want to remain in a central position to maximize opportunities.”

Company Information INDUSTRY

Supply Chain HEADQUARTERS

Melbourne, Victoria, Australia FOUNDED

1942 EMPLOYEES

40,000 REVENUE

$20.1 billion PRODUCTS/ SERVICES With 63 production and engineering sites in 26 countries and 18 service centers across the world, Bombardier Transportation is the global leader in the rail industry. They cover the full spectrum of rail solutions, ranging from complete trains to sub-systems, maintenance services, system integration, and signaling. Their installed base of rolling stock exceeds 100,000 rail cars and locomotives worldwide. Bombardier’s 39,700 employees continue a proud tradition of delivering ingenious rail transportation solutions.

w w w. b o m b a r d i e r. c o m /

175


Profile for Business Chief ANZ

Business Review Australia - July 2015  

Business Review Australia - July 2015