quarterlynews VOLUME 1 I 2005 4 Focus on continuous improvement 10 New $15 million contract for Synchrotron Project 18 THIESS THIESS l quarterly news l VOLUME 1 l 2005 Caltex Project receives safety award 1 Contents 4 10 14 18 Continuous Improvement Thiess’ commitment to continuously improving performance $15M Synchrotron Contract Thiess has won an additional $15 million of work for the Synchrotron Project Morwell River Diversion The extension to Yallourn Mine is almost complete Caltex Project safety award The Caltex Team has worked more than 200 days LTI free Published by Thiess Pty Ltd, ABN 87 010 221 486, Marketing and Communications. Editor: Diana Jordan Phone, fax or email your comments to: Ph: (07) 3002 9663 Fax: (07) 3002 9690 Email: [email protected] Visit our homepage: www.thiess.com.au 2 Inside: Geraldton Southern Transport Corridor (GSTC) Construction Manager Peter Hopfmueller and Community Relations Manager Carolyn Nixon examine limestone. Material from the GSTC Rail Alignment is being used to fill the eastern breakwater on the Geraldton Port. THIESS l quarterly news l VOLUME 1 l 2005 Front cover: Aerial shot of the opening of the Brand Highway Interchange – part of the GSTC. Building on our Behind thecapabilities scenes Welcome to the first issue of Thiess quarterly news for 2005 and to a new year, which is already shaping up as another busy and exciting period for the company. In today’s fast paced and changing business environment, maintaining a competitive position to ensure we continue to deliver value to our clients requires an ongoing focus on developing our people, along with the company’s systems and processes. In this and subsequent issues, I would like to share with you some of the work going on “behind the scenes” to help ensure Thiess stays at the leading edge in providing services to the many industries in which we operate – starting with some of the HR programs we are implementing to develop our people; our greatest asset. Developing our people As we continue to meet complex business challenges, it is intended that our overall HR strategy provides us with consistency in recruitment, development and recognition across the organisation to help ensure high standard commercial outcomes. To support this strategy, a number of initiatives and programs are being developed and delivered , including all staff from Graduate intake through to Senior Management. Underpinning our outcomefocused human resource strategies is the Thiess Competency Model. This model was developed in consultation with our people to identify key competencies that define and guide high performance to assist us in cultivating and sustaining strong technical, managerial and leadership capability. Late last year we conducted our inaugural Senior Management Development Program. The aim of this initiative is to reinforce the Thiess Competency Model, challenge our senior leaders and emphasise the importance of values, culture and business strategy. This emphasis on building shared understanding is also being harnessed through our Graduate Development Program, through which we have welcomed 85 new graduates to Thiess over the last two years. This program introduces our future managers to the key drivers in the business and begins building their skills and competencies as they assume greater responsibilities. Leveraging skills and experience Fundamental to Thiess’ competitive edge is our ability to leverage skills and experience across the organisation. The diversity of our business sees our people regularly faced with new opportunities and challenges requiring a collaborative and innovative approach, as exampled by the start-up of major projects such as the Lane Cove Tunnel in Sydney and the Mitcham Frankston Project in Melbourne. The benefits of some refinements last year to our organisational structure are now being realised. Single point accountability for Process, a national co-ordination group for Building and the establishment of the Resources Development Group are all good examples of leveraging our skills and knowledge to consistently provide high value services. By further investing in our human and intellectual capital, we will continue to build the capability of the organisation and maintain our forward momentum and industry leadership position. assembled in Melbourne and site establishment works are well under way. Thiess Services was recently successful in securing two major contract extensions, namely South East Water and Alinta, both in Victoria. These contract renewals are testament to the strong relationships and the quality of service provided by our Services Business. “ Fundamental to Thiess’ Asian Tsunami It was with great sadness that we learnt of the devastation and loss of life caused by the Boxing Day Tsunami. While the impact of this natural disaster continues to unfold, it is heartening to see the incredible support being rallied from Government, Corporations and the Australian public. competitive edge is our ability to leverage skills and experience across the organisation. ” In addition to the funds and in-kind support being provided by Thiess, our people have pledged more than $75,000 in donations through the Thiess Group Appeal, which will be matched in value by the company, to help our neighbours to rebuild their lives and their communities. Across our more than 150 current projects, the Thiess Team is working hard to deliver great outcomes. With our work in hand at record levels and strong market conditions expected to continue, we look forward to a busy and successful 2005 working closely with our valued clients and business partners. Business update We were delighted to achieve financial close on the $2.5 billion Mitcham Frankston Project late last year. Our joint venture team is currently being Managing Director Roger Trundle THIESS l quarterly news l VOLUME 1 l 2005 3 Committed to continuous Improvement improvement A commitment to continuously improving performance throughout the company assists Thiess to make a difference as a leading service provider. Thiess quarterly news profiles three examples of how this commitment is improving Thiess’ systems, client service and the development of our people and the engineering industry as a whole. Project Focus – giving focus to Thiess’ management system needs Having the right systems in place to assist employees in adding value for our clients is critical for fostering and delivering continued future growth. A recent Group-wide user review of the existing Thiess Management System (TMS) reinforced the importance of the TMS for the company. It also highlighted opportunities to improve its full effectiveness. In recognition of this, the Project Focus Team has been established with the key aim of delivering an enhanced management system to meet Thiess’ needs for at least the next 10 years. “To achieve this”, says Matt O’Brien – Project Manager of Project Focus –“it is important the enhanced system: Thiess Services’ National Systems Manager David Wooldridge (far left) and Project Focus Systems Engineer Erick Santosa (second from right) discuss the new look TMS with Thiess Executive General Manager Infrastructure and Corporate Services Ray Wilson (second from the left) and Acting Executive General Manager Qld/NT/Pacific Bevan Campain (far right). • Is easy to use • Meets the requirements of all areas of our diverse operations • Is flexible to accommodate future growth • Provides an efficient information architecture, and • Captures and allows sharing of the extensive knowledge and experience of our diverse workforce.” In establishing this enhanced system, key activities to date have included benchmarking the current TMS against other 4 THIESS l quarterly news l VOLUME 1 l 2005 organisations, conducting workshops with operational staff and researching software options best suited to hosting the new look system. One key outcome is the restructure of information into ‘focused’ content areas. For example, there will be a Project and Services Delivery section, along with a Support Services area for information such as Accounting and HR procedures. This will ensure the information is both targeted and easily accessible to the appropriate audience. Activities will continue to ramp up during the next few months and will involve drawing on expertise from across the business to redefine and transform the procedures currently in the TMS. At the same time, the Project Focus Team will be leading moves to streamline access to the majority of Thiess’ knowledge capture systems – including the Knowledge Database, Intranet and Thiess Services’ Online Workplace Management System. The functional needs of the Indonesian operations and Australian subsidiary companies are key considerations for the Project Team. The resulting product should therefore represent an integrated system that truly reflects the diversity of the Thiess Group. A roll-out of the new system, including training for staff will be complete by the end of 2005. market research consultants to meet with and interview a cross section of Thiess’ key clients. The interviews are currently being held. “During the next few years, the two key areas of focus will be education and training programs and joint research and development projects. We will examine providing support to specific actual projects that will be of benefit to Thiess. We aim to also broaden this concept to other universities in Australia.” The Thiess UQ Strategic Partnership provides opportunities for Thiess to set future directions for the engineering industry. Thiess UQ Strategic Partnership – fostering excellence in education and development The Thiess UQ Strategic Learning Partnership, established in 2000, aims to utilise the facilities and expertise of Thiess and the University of Queensland to develop innovative engineering leaders through education and technology. UQ Professor David Radcliffe said the partnership has achieved many important results during the past four years including fostering increased learning opportunities for university students and providing a forum for Thiess to contribute to curriculum development and help set future directions for the engineering industry. Some of the key achievements have included: • Jointly establishing an undergraduate site learning program through which final year engineering students spend a semester on sites doing projects for the site while simultaneously gaining full academic credit for the time. (Over 90 students have completed this program; nearly half on Thiess Sites) • • • Providing opportunities for graduate students to work on Thiess Projects and Thiess Staff to participate both as learners and as presenters in university programs Creating a Master in Professional Studies in Engineering that allows working engineers to develop their project skills including integrated design and construction, value engineering and knowledge management using the principles of work – integrated learning, and Developing various research and development projects with external funding. This has included conducting rapid anaerobic digestion of municipal solid waste trials at the Thiess Swanbank Landfill, measuring the costs and benefits of virtual design and construction technology in major projects and completing a socio-technical study of design management culture in the company. “In recognition of the partnership benefits for both organisations, a decision was made last year to re-launch and further commit to the partnership until 2009,” David said. Findings from the survey will assist Thiess in gaining a better understanding of: Thiess Technical Services Executive Manager Tony Coyle said the partnership is important for Thiess in both providing a critical link with current educational trends and in enabling the company to be involved with research and development initiatives, which may assist in improving future performance on Thiess Projects and within the broader industry. Requirements for key services • Customer satisfaction and performance improvement priorities • Challenges to service delivery in the years ahead and changing priorities, and • Currency and positioning of Thiess branding. The feedback received from this process will be presented to the Thiess Executive, and business units, who will then have the opportunity to incorporate key findings into corporate strategic plans and in individual business unit plans. Client Research Development Program – ensuring ongoing client service In a highly competitive market, Thiess understands the importance of fostering its relationships with clients. The Client Research Development Program is part of an ongoing commitment to continuously improving services and responsiveness to customer needs. As a component of this program, Thiess has engaged external • Ray Wilson Thiess’ Executive General Manager Infrastructure and Corporate Services said the survey adds considerable value to Thiess’ business planning process and will now be conducted on an ongoing basis. “The results will provide the Executive with important information to guide our future performance.” Market research consultant Deborah Wilson and Thiess Director, Finance and Administration Don Argent discuss the Client Research Program currently under way. THIESS l quarterly news l VOLUME 1 l 2005 5 Geraldton set for early Project update Revisions to the traffic management plan and construction schedule means the Geraldton Southern Transport Corridor (GSTC) is now due to finish by end 2005. The original completion date for the $88 million project, which involves the creation of 4.9km of new road, 13km of rail, four bridges, and two tunnels, was forecast for April 2006 when Thiess was awarded the contract in 2003. But a revision of the traffic management plan and construction schedule in February 2004 saw the project leap ahead with roadwork now due for completion by mid 2005 and the railway to be installed before the end of 2005. Fast tracking the project Construction Manager Peter Hopfmueller said the scheduled early completion is a great result for the community and our client. “The construction team reviewed the original program and came up with a new construction sequence that we thought would be the best way to minimise disruption to the community,” he said. “This involved building the Brand Highway Interchange first, and with the support of the City of Geraldton, we have been able to follow that sequence through. “The interchange is a key feature of the project and has involved replacing the existing Brand Highway Roundabout to assist with the traffic flow for vehicles entering the central business district. “Originally we were going to concentrate on building the Waverley Street Bridge first. However, building the Interchange first has caused slightly more disruption but over a shorter period of time. “More importantly, changing the construction sequence allowed us to maximise our resources in the first part of 2004 and get the project to the stage that it currently is.” Thiess meets client expectations According to Main Roads’ Community Relations Representative Tammy Mitchell, the Thiess Team worked hard to allow the interchange bridges to be opened to traffic before Christmas. The first car to travel over the Brand Highway Interchange. 6 THIESS l quarterly news l VOLUME 1 l 2005 “I would like to congratulate the Thiess Team for its ongoing commitment to delivering the GSTC in an environmentally sensitive manner and with the least possible impact on the Geraldton community,” she said. “It is a pleasure to work with Thiess to ensure the works are effectively managed, and environmental standards not compromised.” Future works In finalising the project, future works involve completing finishing works at the interchange including the eastern side of the southern ramp and sealing of the pedestrian and cyclist path. Following the recent opening of the Waverly Street Bridge, Geraldton road users can also look forward to the opening of the Marine Terrace near Pages Beach in March 2005, which will allow traffic to travel in an east-west route again, and the Highbury Street Bridge opening in June 2005. For more information about the project, please visit the project website – http:// geraldton.thiess.com.au. WA Premier Geoff Gallop at the launch. finish Interchange opens to huge crowds The much anticipated Brand Highway Interchange, part of the Geraldton Southern Transport Corridor (GSTC), officially opened to a crowd of approximately 1,000 people who were keen to be the first to walk over the newly constructed bridge on 21 December 2004. Thiess, Main Roads and local group Move Motivate Midwest, invited the Geraldton community to join in this once-only opportunity to enjoy the panoramic views, meet the people who made it happen and then join them for breakfast on the bridge. This was followed at 12pm by the very first cars travelling across the two bridges and the interchange with traffic flowing smoothly. According to Thiess Construction Manager Peter Hopfmueller the support shown by the Geraldton community has been overwhelming. “It’s very rewarding for Thiess and all the team that’s worked together. It’s a really good feeling and we are pretty happy,” he said. “We were only expecting 200 or 300 but the support has been fantastic and exceeded all our expectations. “It’s great for the team to see first hand what they’ve been working on over the past months and to hand it over to such an enthusiastic community.” Members of the GSTC Project Team. L to R: Niels Asche, Mark O’Reilly, Carolyn Nixon, Brendon Deshon, Peter Hopfmueller, Brenton Pike, Adrian Matthews and Peter Schmidt. The opening of the interchange means less traffic disruption and improved access to pedestrian and cyclist facilities. Move Motivate Midwest escorted groups of walkers from the Geraldton Surf Lifesaving Club and Maitland Park. Committee Member for the group Jo Blayney said the event was important because it highlighted facilities for pedestrians and cyclists at the interchange. The opening of the interchange on the GSTC is a significant step forward in the overall project. For many in the Geraldton community it will mean an easier commute to work, less traffic disruption near their homes and improved access to pedestrian and cyclist facilities. However the benefits do not stop there. While the road is an integral part of the project, the railway to be installed before the end of 2005, will continue to deliver benefits to the Geraldton community in terms of access, safety and efficiency for the transport industry and for the Geraldton community. Approximately 1000 people took the opportunity to walk on the Brand Interchange before it was officially opened. THIESS l quarterly news l VOLUME 1 l 2005 7 Awards New contract awards Geothermal power station award TWMS Schweppes on sweet deal Site works for the Durajat Unit III Project are under way. On 29 October 2004 PT Thiess Indonesia, in consortium with Kanematsu Corporation, was awarded a US$85 million contract for engineering, procurement and construction of the Darajat Unit III Project by Chevron Texaco Engineering Indonesia. Thiess is leading the consortium and is responsible for managing the total contract while Kanematsu is responsible for design, supply and commissioning of the MHI Steam Turbine Generator Package. Thiess Project Manager Bruce Weber said the project includes the development of a 110 MW geothermal power plant at Darajat and is the third stage of Chevron Texaco’s development of its Darajat Geothermal Resource. “The resource, located near Mt Kendang in West Java approximately 150 km southeast of Jakarta, is within a volcanic range containing centres of relatively recent activity and vigorous surface displays of geothermal activity,” Bruce said. 8 “This means the power station can produce geothermal power by collecting naturally generated steam from the underground volcanic regions,” Bruce said. “The Darajat Geothermal Field is a substantial high quality resource producing dry steam at the wellhead and includes some very large wells including one well which has 40 MW capacity. The world-wide average is 5–10 MW per well.” Unit III will be installed on a common site as an extension to Chevron Texaco’s existing Darajat Unit II Geothermal Power Station and the two units will share common facilities including the steam gathering system. In addition to constructing the new geothermal power plant, the scope of works will include extending the existing Unit II Turbine Hall to house the Unit III Plant and completing steamfield works involving procurement, construction, testing and commissioning of the expanded design for the existing geothermal steam gathering system. The project is expected to be completed by September 2006. THIESS l quarterly news l VOLUME 1 l 2005 TWMS Environmental Consultant Nathan Radley (Left) with Cadbury Schweppes personnel during a site audit. Thiess Waste Management System (TWMS), a division of Thiess Services, has negotiated an initial 12-month contract with Cadbury Schweppes Australia and Cadbury Schweppes New Zealand for the implementation of an Integrated Waste Management System. This contract, which has the potential to be extended for an additional two years, is to increase and implement new recycling systems and to manage all general, hazardous and liquid wastes. Other services that may come under this agreement in the future are sanitary, bathroom and pest control services. Cadbury Schweppes Australia has 19 sites across all states and the New Zealand Division has two sites, one in Auckland and one in the south in Dunedin. TWMS Sales and Marketing Manager Julian Ryan said the expansion into New Zealand is exciting as it gives an opportunity for TWMS to cross the Tasman with its unique Integrated Waste Management System. “Cadbury Schweppes has corporate targets for diverting waste from landfill and reducing overall waste costs,” he said. “TWMS is able to reduce waste volumes and costs and achieve regimented client set KPIs through a holistic approach of professional client management, comprehensive site auditing, competent contractor negotiations / management, implementation of new waste diversion options and, in some instances, new process design.” Curragh North strikes coal Thiess Qld/NT/Pacific’s new Curragh North Mining Operation has achieved an important project milestone with the first coal exposed less than two months after work began on the site. More than two million m3 of overburden have been removed from the site exposing the first signs of quality coking coal approximately 20m beneath the earth’s surface. Thiess was awarded the contract in October 2004 by client – Wesfarmers Curragh Pty. Ltd. – for the construction of infrastructure and initial mining and pre-strip activities at the site. Work under way on Five Islands Road haulroad and water storage dam construction. Excavation of the first boxcut began at the site on 20 November last year, with an initial project milestone to expose 100,000 tonnes of coal by 1 March 2005. After some initial challenges in getting the equipment established on the site, the project is now ahead of schedule in terms of the amount of overburden excavated to date. Curragh North Mining Project Manager Andrew Boyd said he is confident the team will achieve the first coal exposure milestone. Located 20km north of Wesfarmer’s existing Curragh Mine in Queensland’s Bowen Basin, the Curragh North Project will involve the construction of a range of site support facilities, including a mine industrial area, water management, power supply, an access road from Curragh North to the existing mine at Curragh and an extensive levee bank adjacent to the Mackenzie River. “We have a dedicated and experienced team working on the site and I’m very confident we will achieve the first coal exposure target by the beginning of March,” Andrew said. Initial mining activities consist mainly of the excavation of 100 million m3 of overburden during the four-year term of the contract, as well as “The challenge for the team now is to maintain this level of performance as we increase the number of people and equipment on site.” “I have been really impressed with the way everyone in the team has helped out in getting the project up and running. We’ve had no injuries and are ahead of schedule. Members of the Curragh North Project Team. Back Row L to R: Andrew Boyd, Col Hatton, Peter Kelly, Dana Popovski and Derek Wilson. Front Row L to R: Jacqui Sheppard, Rua Hau, Cherie Harris, Karl Telford, Nigel Dalley, Kevin Kelly and Kelven Lawson. Thiess has begun work on upgrading Five Islands Road, South-West of Newcastle, NSW. Work has commenced on the upgrading of 1.7km of Five Islands Road on the western side of Lake Macquarie, around 15km south-west of Newcastle in NSW. The project is being undertaken for the NSW Roads and Traffic Authority. Thiess’ work involves widening the existing single carriageway between the Speers Point and Booragul Roundabouts to a dual carriageway, constructing two 176m eight-span bridges and completing remedial work on the existing bridges, together with the upgrade of the Speers Point and Booragul Roundabouts to improve the alignment. “Our team is very enthusiastic about the project due to the variety of activities and the fact that we’re working in an urban environment alongside a lake,” said Project Manager Ian Currey. limited access points and working within a protected wetland, we’re confident that we have the right solutions and people for the task.” Environmental protection is a key consideration as Five Islands Road runs alongside Lake Macquarie and through protected wetland areas. Additional wetlands will be created to compensate for the loss of wetland area resulting from construction of the upgrade works. The compensatory wetland in Tulkaba Park will consist of a network of channels where mangroves will establish and the wetland south west of the southern bridge will consist of saltmarsh vegetation. Scheduled for completion in early 2007, the Five Islands Road Upgrade will benefit local and regional communities through improved accessibility, travel times and road safety. “While it has some unique challenges such as very heavy peak traffic flows, THIESS l quarterly news l VOLUME 1 l 2005 9 Win Thiess wins additional $15 million synchroton contract Thiess has successfully secured an additional $15 million of work for the Synchrotron Project after completing the design and construction of Australia’s first dedicated Synchrotron Facility, one month ahead of the contractual date. The initial contract involved designing and constructing a 116m diameter building with a height of 12.4m at its highest point and an internal area of more than 15,000m² to accommodate the synchrotron machine and associated equipment. Project Manager Mike Rogers said winning an additional $15 million contract is recognition of the team’s hard work to ensure Thiess delivered the required project outcomes for the client. “We are very pleased the client has negotiated a further $15 million worth of variations and has appointed Thiess to the construction management services for the machine installation,” he said. “We look forward to continuing to work in partnership with Major Projects Victoria.” The additional contract means Thiess will continue to contribute to one of the most exciting and significant science infrastructure investments in Australia for decades. The Synchrotron Project Team has worked hard to deliver the client’s requirements. 10 THIESS l quarterly news l VOLUME 1 l 2005 According to Mike, Thiess has a long and proud history of playing a pivotal role in the development of the nation’s essential infrastructure. New contract The scope of works for the $15 million contract will involve installation of the: • Electrical distribution for the machine and magnet power supplies • Low conductivity water plant for cooling the beam line • Lead shielding, and • Compressed air and air skates to the tunnel doors. To ensure these works are completed, key priorities for the project team over the next few months include: • Completing power supplies and low conductivity water to enable the commissioning of the linear accelerator • Co-ordinating and supervising the installation of the linear accelerator and magnets, and • Providing facility management. The expected completion date for the new contract is March 2006. New era NQGP supports regional NQ growth The Moranbah Compressor Station – helping to facilitate commercial and industrial growth in North Queensland. A strategic link between the north Bowen Basin Coalfields and Townsville, the pipeline will deliver competitively priced coal seam gas to the region, facilitating new opportunities for new and existing commercial and industrial growth. Delivered by the NQGP Alliance, consisting of Enertrade (the owner), GHD (the engineer) and the Thiess Nacap Joint Venture (constructor) - the project involved the construction of the Moranbah Compressor Station and 392km of pipeline across 25 major roads, rails or water bodies. Thiess Civil Manager (Qld/NT/ Pacific) Peter Lyons said an alliance approach was critical to ensure the efficient delivery of the project. The alliance team modified its original Horizontal Directional Drilling Technique to minimise any potential damage to pipes. “Generally with pipeline projects, achieving timely approvals is a major frontend challenge, and the NQGP Project was no exception to the rule. With 65 individual landowners, major environmental considerations and a tight work schedule, an open, robust approval system was needed,” Peter said. Completed in September 2004, the North Queensland Gas Pipeline Project (NQGP) has significantly enhanced the coal seam gas industry and launched a new era of economic activity in regional North Queensland. “Alliancing ensured a ‘no blame’ culture that allowed people to collaborate, discuss options and agree on best-for-project solutions to provide a focus on outcomes. “For example, as part of the project we needed to drill under bodies of water, which was a major challenge, and found that the original Horizontal Directional Drilling Technique damaged the pipes’ coating as a result of the cobbly strata. “As with other project issues as they arose, the alliance approach ensured the engineering, operations and construction personnel were brought together into the value engineering, design development and review process, which facilitated the efficient identification and implementation of a solution without severe impact on the critical project end date. “Alliancing was the most effective delivery method for this project as it encouraged involvement of all people with an opinion in robust discussions, a common focus, no claims and ultimately, smoother and more efficient project delivery, which were integral for the project’s successful completion.” The project provides scope for a future connection to central Queensland markets such as Gladstone and Rockhampton. THIESS l quarterly news l VOLUME 1 l 2005 11 Outstanding Thiess completes a first of its kind Thiess has recently completed major construction works for Rio Tinto’s $400 million HIsmelt* Project in Kwinana, Western Australia. HIsmelt Project Team Members. L to R: Will Telfer, Michael Bourguignon and Andrew Giammo. Awarded in August 2003, the project has involved the design, construction and operation of a first of its kind project. One of the Thiess Project Managers Andrew Giammo expressed Thiess’ pride in being part of such a ground breaking project. Working in partnership with Rio Tinto, Thiess has formed part of a project, which represents a significant step forward in the development of new generation technology for the world steel making industry. The HIsmelt Project has involved the design, construction and operation of a first of its kind project. The HIsmelt Project has comprised three separate contracts: • This new technology can be considered both as a potential replacement for the blast furnace and as a new source of low cost iron units for the Electric Arc Steel Making Industry. While the project has been technically challenging as much of the construction has been first generation technology, Thiess’ integrated approach has ensured the project will be completed successfully. According to Andrew, 12 given the significant requirement to ensure the correct sequencing of the work and the substantial number of heavy multi crane lifts involved, the project has allowed Thiess to demonstrate its mechanical and piping installation capability and high level project management skills. THIESS l quarterly news l VOLUME 1 l 2005 The Central Iron Making Unit (CIU) Fabrication and Erection Contract, which involved erection of the smelt reduction vessel where the HIsmelt process takes place, and supply, fabrication and erection of metal and slag runners, process piping, insulation, gas cleaning plant vessels and associated services • The Pipe Racks and Civil Contract, which was divided between civil and mechanical engineering, and • The Pre-heater and Lock Hopper Contract, which involved construction of two towers - the preheater which is the tallest tower on site at 75m, and the lock hopper. Outstanding safety record Importantly the HIsmelt Project has maintained an outstanding safety record. According to Operations Manager Tim Webster a key focus of all workers has been maintaining a very high safety standard. From its inception this project has recorded 385 days free of Lost Time Injuries with a Thiess combined workforce peaking at 390 personnel. Thiess completed the remaining works including the last of the process pipe work and the hot ore conveying pipe from the ore pre-heaters in February 2005. *What is HIsmelt? HIsmelt is a direct iron making process in which iron ore fines and/or other iron containing materials and coals are injected into a vertical smelt reduction vessel to produce a quality pig iron. Upgrades Lane Cove Tunnel – heading for full production in 2005 Out with the old and in with the new Following a smooth start to construction last year, work on the $1.1 billion Lane Cove Tunnel Project will reach full production early in 2005, with tunnelling and major road works in full swing. Member for Lara (Right) Peter Loney inspects the installation of a turnout with Thiess ALSTOM Joint Venture Project Manager Jason Spears. Another major milestone has been achieved on the Regional Fast Rail Project with the successful completion of two weeks of upgrade works that will modernise infrastructure on the Geelong Rail Line. The Geelong Regional Fast Rail Project is the largest-ever upgrade of rail infrastructure on the line, and forms part of the Victorian Government’s Regional Fast Rail Project, which will link the regional centres of Ballarat, Geelong, Latrobe Valley and Bendigo to Melbourne with faster, more frequent rail services. For a two-week period in January 2005, the Thiess ALSTOM Joint Venture performed major upgrades on five crossovers and three turnouts, replacing the old timber structures with more than 1,000 concrete bearers weighing up to three tonnes each. Construction during this period also involved the upgrade of level crossings and surface reconditioning of numerous roads, installation of concrete sleepers in selected sections of track, crossover and turnout installation and minor signalling works. While these upgrades required the total closure of the Geelong Rail Line, the improvements will deliver significant long-term benefits providing both rail and road users with smoother travelling conditions. Upgrade works completed on schedule An intense construction program was implemented to ensure works were completed on time. Thiess ALSTOM Joint Venture Project Manager Jason Spears said the team was committed to completing the works on time and did everything possible to minimise inconvenience. “We are very appreciative of the support and patience we have received from local residents and businesses,” he said. “We thank them for their warm reception and will seek to continue these strong relationships throughout the project.” Future focus The recent closure of the Geelong Line to passenger services also enabled the Thiess ALSTOM Joint Venture Team to perform preparatory works for the installation of the new signalling system. The state-of-the-art signalling system will improve train reliability and enhance safety measures at level crossings and pedestrian cribs. The new signalling system will be installed during 2005. Timber sleepers from the old crossovers from the Geelong Rail Line. As well as twin 3.6km road tunnels beneath Lane Cove in Sydney’s Lower North Shore, the project also includes widening of the Gore Hill Freeway, new ramps linking the Warringah Freeway and Falcon Street at North Sydney, plus widening of the Lane Cove River Bridge and Epping Road at North Ryde. Since site establishment commenced in April 2004, three tunnelling work sites have been established and tunnelling in the mainline tunnels is underway. A good start has also been made on the surface, with work under way on the Pacific Highway, Gore Hill Freeway and Epping Road. The Falcon Street works will commence early in 2005. When completed, the project will deliver reduced travel times between the city and the fast-growing north-western suburbs, reduced traffic congestion on surface roads and better facilities for pedestrians, cyclists and public transport. The project will form part of Sydney’s orbital network of high-quality motorways. Design and construction of the project is being undertaken by the Thiess John Holland Joint Venture and is due for completion in 2007. By then, some 5,000 people including project staff, sub-contractors and suppliers will have been inducted into the project. THIESS l quarterly news l VOLUME 1 l 2005 13 Project update Morwell River Diversion nears completion Project scope of works The scope of works for the Morwell River Diversion has included: • Placing approximately 12.5 million m3 of engineered fill to form a 3.5km river diversion embankment across the existing mine pit • Constructing four tunnels under the river diversion, with a combined length of approximately 1.3km for the conveyors to transport coal from the existing and new coalfields • Completing associated works such as road construction, installation of drainage systems, instrumentation and other miscellaneous civil work, and • The project, being undertaken by the Roche Thiess Linfox Joint Venture, under an Alliance contract with Yallourn Energy, is designed to extend the life of Yallourn’s Mine to 2032 and ensure a sustainable coal supply for the long-term operation of the Yallourn W Power Station, which provides 20% of Victoria’s power needs. Project Manager Laurice Temple said the team has built the 3.5km river diversion embankment, which will raise the river 60m above the floor of the mine, and is working hard to complete all final aspects of the project. “Throughout the project, the team has remained committed to delivering to our client’s needs and expectations,” Laurice said. “This plan has provided a central point of focus for all parties involved to regularly monitor progress and ensure the project remains on track.” “This has included being proactive in developing a Completion Action Plan in September 2004. As part of these final arrangements, in the past few months, the team has been busy completing: Relocating services. The Morwell River Diversion Vehicle Crossing. When completed, the Diversion will extend the life of Yallourn’s Mine to 2032. 14 THIESS l quarterly news l VOLUME 1 l 2005 • Bulk earthworks • Relocation of all services including fire, ash and sewer mains • Topsoiling and vegetation of the embankments and wetlands (40,000 plants), and • Construction of the Low Flow Channel. Laurice said she is very proud of everyone who has worked on the job for their achievements and dedication in delivering such a highquality product within the stipulated timeframe and budget. Roof raise Darwin LNG Project raises the roof Imagine lifting the roof of the world’s largest LNG Storage Tank with air. Recently the tank roof that measures 92m in diameter and weighs approximately 1200 tonnes was raised using four fans. The lift was undertaken in a period of 10 hours. Internal workings on the Darwin LNG Storage Tank after the recent roof raising. The domed roof for the LNG Storage Tank was constructed at ground level concurrently with the construction of the steel lined concrete secondary containment walls. A flexible seal was then installed between the steel lining and the roof to maintain pressure during the roof raising. To ensure the roof was maintained level during the roof raising, a system of cables was installed to balance the structure. Thiess Construction Manger Peter Halpin said reaching the roof raise milestone was integral to the project’s timely delivery. “The roof lift had to be completed before the wet season began. With unpredictable and severe storms heading our way, we will now be able to construct the inner 9% nickel alloy product containment tank under the roof without any interruption from the weather.” The 47m high tank is expected to be completed by January 2006. The tank stores 188,000m3 of Liquefied Natural Gas at a temperature of -167 degrees celsius. The LNG shall be exported to end users in Japan. Maintaining the roof level was essential to ensure the seals between the wall liner and the roof remained in contact to minimise air loss at this interface. The fans used for the raising operation were kept running until sufficient welding between the roof and the adjacent walls was completed for structural adequacy. THIESS l quarterly news l VOLUME 1 l 2005 15 Opportunity Wilpinjong Coal Project – new coal resource opportunity Located 40km north-west of Mudgee and approximately 110km west of Muswellbrook, the Wilpinjong Project represents a major opportunity to develop a new coal resource on a greenfield site in the western coal field of NSW. In early 2003 Thiess made a strategic decision to align with Excel Coal Limited, who had studied the site for several years and now own 90% of the land. Excel’s exploration licence covers some 4,222 hectares and the site has an in situ resource of some 523 million tonnes of thermal coal. Its large reserves have a very low strip ratio compared with typical Hunter Valley mines and the overall project has a potential life of more than 20 years. Thiess’ expertise will be used to deliver the development, infrastructure and operational phases of the project. The mine infrastructure will include a rail loop, access roads, workshop, offices and bath house facilities. Design and construction of a Coal Handling Plant for raw coal crushing, stockpiling and associated train loading facilities are also part of Thiess’ contract. 16 THIESS l quarterly news l VOLUME 1 l 2005 A 50:50 Joint Venture between Thiess Services and Sedgman will undertake the design and construction of the coal handling, crushing, washing and rail loading facilities. Final exploration drilling of the site to fine-tune the geological model is virtually complete and Excel is currently finalising EIS documentation together with a Development Application for submission in early 2005. Community consultation is continuing while Thiess moves into the project definition phase for the mine infrastructure and establishes relationships with local service providers. Scott Winter from the South Walker Creek Project in Queensland has been appointed as Project Manager and has recently established a permanent site office. The target is to commence construction in late 2005 and mining in mid-2006. Consolidated STCJV and Silcar form one cohesive organisation Siemens Thiess Communications Joint Venture (STCJV) and Silcar, two separate unincorporated joint ventures formed by Siemens and Thiess Services, have combined forces under one management structure with a plan to form what will eventually be an incorporated business. By integrating the two joint ventures, Siemens and Thiess Services are able to take advantage of the synergies that exist in the current activities of parts of both joint ventures. What will be the benefits? With combined revenue of approximately $300 million, the opportunities available to the larger organisation of STCJV and Silcar will be significantly enhanced thanks to the increased diversity of operations and the potential to leverage both joint venture’s resources, markets and expertise. CEO of Silcar Bernie Cooper, who has assumed overall leadership and responsibility for the new organisation, said bringing the resources and capabilities of the two joint ventures into one organisation will also positively address a number of legal and commercial issues and provide a stronger vehicle for further growth. “Under the integration, STCJV and Silcar have been consolidated into a single management reporting to a single board. This will assist both joint ventures to improve their businesses by maximising their potential synergies and simplifying the management process,” he said. Previously, both STCJV and Silcar operated as separate joint venture entities, each reporting to two separate Boards made up of members from both companies. Under the integrated structure, the two joint ventures have been consolidated, with one single management team reporting to one single Board. While STCJV and Silcar Head of Silcar Network Assets Division Allan Bradford (left) with General Manager STCJV Michael Wright. will continue reporting independently until further notice, the initial changes, which became effective from 1 December 2004, included: • Replacing the two Boards with one single Board • Announcing Board Members • CEO of Silcar, Bernie Cooper assuming overall leadership and responsibility for all operations, and • STCJV newly appointed General Manager Michael Wright reporting to the Silcar Networks Assets Division, alongside Telepower and High Voltage and Electrical Services, headed up by Allan Bradford. STCJV commenced in June 2000 with a business focus on pursuing future telecommunications work in Australia and nearby regions. STCJV has extensive experience in the planning, design, construction and ongoing operations and maintenance of communications networks and has delivered quality results by consistently meeting targets for cost, quality and timely delivery. Silcar was established in 1993 to provide maintenance services for power industry clients in the Latrobe Valley. Since then the business has expanded into asset management and maintenance services for technically complex assets. This includes thermal power generation, pulp and paper, steel manufacturing, telecommunication energy systems and the mining and mineral processing industries. THIESS l quarterly news l VOLUME 1 l 2005 17 Art prize Thiess Art Prize 2004 December 1 2004 marked the official opening of the third annual Thiess Art Prize. Thiess is proud to continue its association with the Griffith University - Queensland College of Art (QCA) through the prize, which encourages and rewards artistic excellence. The entries this year were diverse and ranged from sculpture to painting and metal work, with the winning work destined to be proudly displayed on Level 10 of the Thiess Centre at South Bank. This piece will join the growing collection of winning art in the Thiess Centre, on display as a result of the Thiess Art Prize. Caltex Project receives safety award On November 30 2004, Thiess Managing Director Roger Trundle made an important award presentation to the Caltex Project Team in Indonesia in recognition of the team’s achievements for working more than 200 days Lost Time Injury free. In his presentation, Roger members with a momento In addition to the Caltex site congratulated Construction of their achievement. tour, during his recent visit Supervisor Tanda Harapan The team is still continuing to to Indonesia Roger also and his team on their perform well and has recently visited the Suban II Project outstanding safety efforts and worked more than 300 days in Sumatra and the Darajat III presented each of the team LTI free. Site in Java. The prize is gaining popularity every year, both with art lovers and among QCA art students as an opportunity to showcase their artistic talent and achievements. Over 2000 people visited the exhibition this year, making it an excellent opportunity not just for Thiess to demonstrate its support and commitment to the Arts, but for staff to be part of a great community event. Special thanks to our Chairman Martin Albrecht who judged the entrants this year alongside Philip Bacon AM and the Director of the QCA Mostyn Bramley-Moore. Congratulations to this year’s winners – Shena Collins, Karla Marchesi, and Suzanne Danaher. Roger Trundle congratulates Construction Supervisor Tanda Harapan on the safety achievement. The Caltex Project Team. STOP PRESS Mitcham Frankston Project Office opened The exhibition at the Dell Gallery South Bank was open to the public throughout December and January. The crowd gathering on the opening night of the Thiess Art Prize Exhibition. 18 THIESS l quarterly news l VOLUME 1 l 2005 The Thiess John Holland Mitcham Frankston Project Office was officially opened by Premier of Victoria The Hon. Steve Bracks MP on 16 February 2005. Site establishment works for the project are currently under way. Health A step in the right direction Thiess Qld/NT/Pacific (QNP) is trialling a new employee health program aimed at improving employees’ health through encouraging regular exercise. More than half of QNP’s head office – based employees are participating in the program, known as Step Change, which involves two comprehensive health assessments held at the start and conclusion of the three-month long exercise program. The health assessments consist of a five-point health check specifically looking at cholesterol levels, body composition (such as Body Mass Index and Waist to Hip Ratio), cardiovascular fitness, blood pressure and goal setting. The Step Change philosophy Finance and Administration Manager QNP Ken Kerr has his blood pressure checked as part of the Step Change Program. is based on research that indicates taking 10,000 steps each day improves the health and well-being of the general population. Following their initial assessment, employees form teams and are issued with a pedometer to record the number of steps taken each day. During a threemonth period a team of six participants, each completing 10,000 steps per day, will walk the equivalent of Brisbane to Darwin via the region’s project sites. Positive peer pressure generated by the team approach will be a key motivator, with teams able to track their progress on a map and compare their performance to other teams. A second assessment is then conducted with each individual at the end of the three-month period to measure any improvements made since the initial check up. of a healthy workforce There is likely to be some recognition offered along the way for teams that reach the nominated milestones (project locations) first, but the major prize will go to the team that collectively achieves the greatest health improvements. “Although the Healthy Heart Thiess Workers Compensation and Rehabilitation Manager QNP, Gavin Milich said the program reflected the company’s strong focus on employee health and safety. Gavin said. “We recognise the importance program in the future. David McAdam drives QNP commercial focus In his role David will lead the team responsible for the Region’s commercial support functions, covering such areas as Legal and Contracts, Estimating, Finance, Administration and IT. David said he is looking forward to developing Thiess’ commercial systems, with a particular focus on the implementation of disciplined governance processes. David McAdam. David McAdam has recently been appointed Commercial Manager Thiess Qld/NT/Pacific (QNP). and we want to encourage our employees to look after themselves and incorporate regular exercise into their lifestyles. Program showed we are a relatively healthy group, we wanted to develop a program that got employees actively involved in understanding their health and provide some motivation for regular exercise,” Step Change’s success will be evaluated at the conclusion of the QNP trial, with the possibility of a company wide roll-out of the David has held senior management positions at engineering and construction organisations in both Australia and South East Asia and is a member of the Australian Institute of Company Directors. David has a degree in Chemical Engineering, and is currently completing postgraduate studies in business. “Our long term goal is to equip QNP with efficient system practices and competencies that will take us to the next level commercially and ultimately make us more competitive in the market. “Through strengthening our support systems we can improve the company’s ability to deliver quality service to our clients,” David said. THIESS l quarterly news l VOLUME 1 l 2005 19 www.thiess.com.au
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