´09 Spring 2009 A supplement to COWI’s annual report www.cowi.com Taking consultancy to new places A guided tour of cowi’s regions and international specialist services 4 Crystal ball The economic crisis has not made it easier to foresee the future, but cowi’s President and CEO has a prediction: 2009 will bring both hard work and new opportunities. Growing high 6 2008 in numbers Gain a quick overview of cowi's key figures and financial ratios for 2008. Artificial islands and high-rises symbolise the wealth of the Gulf region 10 Climate ambitions A consultancy firm involved in over 6,000 projects worldwide can do a lot of good for the climate. A network of regions 13 Local know-how Lars-Peter Søbye Globalisation has created opportunities for consultants that set up operations close to their customers. COWI's President and CEO [email protected] 20 14 The nimble giant ´09 cowi’s annual report goes online Spring 2009 A supplement to COWI’s annual report www.cowi.com Taking consultancy to new places A guided tour of cowi’s regions and international specialist services Editorial staff: John Jørgensen, (editor-in-chief), [email protected] Henrik Larsen, [email protected] Christina Tækker, [email protected] Kathrine Schmeichel, [email protected] Uzi Frank, [email protected] Janne Toft Jensen, [email protected] Design and layout: Josina W. Bergsøe, [email protected] Hanne Bjørn Nielsen, [email protected] Marianne Rom, [email protected] Mette Schou, [email protected] Copy editing: Anja Fabech Jensen, [email protected] Translation services: in other words Editorial input closed on 5 March 2009 Reproduction is permitted with appropriate source references Print run: 14,000 Production: Schultz Grafisk ISSN 1600-6313 Published by COWI A/S Parallelvej 2 DK-2800 Kongens Lyngby Tel +45 45 97 22 11 Fax +45 45 97 22 12 www.cowi.com COWI is a leading Northern European consulting group. We provide state-ofthe-art services within the fields of engineering, environmental science and economics with due consideration for the environment and society. COWI is a leader within its fields because COWI's 4,800 employees are leaders within theirs. Busy t Photo: Enok Holsegård im Mike Ajemian, engineer diver with the cowi company Ocean and Coastal Consultants, conducts an underwater inspection in the Upper New York Bay. Climate and infrastructure investments in Denmark are expected to fill the order books in 2009 es Underground Tunnels are easier on both the environment and the eye when traffic problems need to be solved 38 cowi’s Annual Report 2008 will be published solely in an online version that can be downloaded as of 23 April from our website, www.cowi.com. The annual report contains key figures, the management's review, the financial review and accounts as well as the intellectual capital report. And for the first time, cowi will present a green account of its impact on the environment. With Profile 09, cowi puts aside the facts and figures of our annual report and tries to give readers an introduction to the people and the places that make cowi projects. On the following pages, we present an overview of our International Specialist Leader services, and we tour our network of five regional companies – the One Company Network. Welcome to Profile 09. cowi Denmark accelerates business within climate consultancy and public infrastructure projects. 17 Into Africa International donors have found new ways to help local African communities. 18 The Big Bang Massive EU investments will further vitalise Central and Eastern Europe in the years to come. 20 Ever skyward High-rise projects appear to spring out of the Gulf region’s desert landscape like wildflowers. 24 Fireproof Norway's historic heritage is protected from fire by invisible high-tech systems. International specialist leader services 26 Large-scale niches Specialised international projects such as bridges and airports make the cowi brand unique. 28 Water world Marine and coastal consultancy is a growing business everywhere. But right now the Gulf region is where the action is. 30 In deep water A team of engineer divers gives a head start in the tough competition along America’s eastern seaboard. 31 Seen from above 3D-city models based on aerial photos are excellent tools for decision-making and communication. 14 Lars-Peter Søbye, President, CEO 34 Booming bridges When it comes to building bridges, the future not only looks bright – it also looks big. 38 Tunnel visions New techniques enable engineers to push the envelope for what is possible in tunnel design. 41 Taking off Building airports is such a complex business that only the best and biggest can hang on at the top. The CEO takes stock The year 2008 will be remembered as the time when over the course of a few months, uncertainty on the global financial markets developed into a fullblown economic crisis. We still do not know the depth of this crisis. In cowi, we acknowledge that the crisis will inevitably bring challenges and hard work, but we also believe it will bring great opportunities. In 2008, the relevance of our decision pany Network with to transform cowi into a One Com five international regions became apparent. Photos: Morten Larsen Looking back on the first three quarters of 2008, we enjoyed a very strong position in the consultancy sector, but competition increased dramatically in the fourth quarter. So although we emerged from 2008 with our order books in historically good shape, the economic crisis makes it difficult to draw an accurate picture of what lies ahead. In 2009, we expect increased competition, and the number of projects to come under pressure. On the other hand, many governments specify infrastructure and sustainability in their stimulus packages, and protecting the climate and adapting to climate change are both at the top of the international agenda. Given that all these areas feature strongly amongst cowi’s core competencies, we are in a position to we have amongst our regions – a great strength in times of crisis – and enables us to deliver our core competencies wherever we are working. Our customers experience cowi as always providing the strongest team, combining local presence and international strength, and there is no doubt that the regionalisation strategy is the main reason for our success in landing a number of prestigious, international contracts. face the future with moderate optimism in spite of the economic crisis. Focus on profitability and people cowi emerged from 2008 with an operating profit of EUR 22.4 million, which is in line with the budgeted figures. This result was based on the highest turnover we have ever recorded, and indeed we achieved the strongest organic growth our business has seen for many years. In spite of these positive results, our key figures have been under pressure, due in part to cowi’s dramatic growth in 2008. Turnover rose by over 15 per cent and employee headcount by 19 per cent. And this growth carries a price. We have made significant investment in new business systems, in branding, in integrating new employees and not least in developing management and employees. We believe that such investment in people and talent will boost our capacity to react quickly and effectively to changes in the market. With our 2009 budget we are setting the stage for slower growth in turnover, while at the same time making efforts to boost earnings. Market reports from our five regions and their expectations suggest that this target is both realistic and reachable. Successful regionalisation In 2008, the relevance of our decision to transform cowi into a One Company Network with five international regions became apparent. Our business model, which promotes interaction between our local presence and our International Specialist Leader (ISL) services, creates a strong advantage. Our internal structure facilitates optimal exploitation of the resources New economic conditions, new opportunities Our acquisitions in 2008 included the Swedish company PICON and the UK company Flint & Neill which are in the process of being fully integrated in our organisation in line with the other 14 companies we have acquired over the last two years. If we look around the rest of the consultancy sector, there are several potential acquisitions which are attractive. We will keep them in our sights, although our aim this year will be focused on increasing profitability. In cowi, we view 2009 as a year of opportunity, during which we will meet the crisis with the ambition that by building on our business strategy and sound financial position, we will emerge even stronger than we are today. opportunities Hard work and new Lars-Peter Søbye, President and CEO in a time of crisis Profile 09 • 5 Key figures and financial ratios for the cowi Group 2004 2005* 2006 2007 2008 2008 Development in net turnover, operating margin and EBITDA margin Key figures 2,500 2,594.3 2,676.5 2,808.9 3,031.4 3,498.0 469.5 35.1 156.1 194.4 225.4 275.8 261.8 Operating profit on ordinary activities 91.3 117.3 161.8 138.0 165.0 22.1 Operating profit (EBIT) 90.8 120.0 160.2 180.8 167.4 22.5 1,500 5.9 19.6 16.6 11.5 9.0 1.2 96.7 139.7 176.8 192.3 176.4 23.7 Net turnover Profit for the year 62.4 117.0 123.9 155.3 128.3 17.2 Operating margin COWI's share of profit for the year 60.6 115.0 120.4 154.8 127.6 17.1 EBITDA margin 228.9 229.9 216.0 246.1 258.0 34.6 Other fixed assets 144.2 154.4 191.5 276.7 298.7 40.1 Current assets 1,189.8 1,398.9 1,537.5 1,797.4 1,830.8 245.7 Total assets 1,562.9 1,783.2 1,945.1 2,320.2 2,387.4 320.4 Share capital 34.8 34.8 34.8 34.8 34.8 4.7 Equity 446.1 455.3 587.2 716.4 769.9 103.3 Provisions 245.4 367.4 350.3 357.8 367.5 49.3 Long-term debt 14.4 11.0 8.1 28.1 29.2 3.9 Short-term debt 846.1 940.6 988.3 1,215.1 1,218.2 163.5 Cash flow from operating activities 167.1 208.8 213.9 168.9 171.3 23.0 Investment in tangible fixed assets, net (25.5) (40.7) (43.5) (78.7) (39.9) (5.4) Other investments, net (12.2) (30.8) (21.0) (103.4) (125.5) (16.8) Cash flow from investing activities, net (37.7) (71.5) (64.5) (182.0) (165.4) (22.2) Free cash flow 129.4 137.3 149.4 (13.2) 5.9 0.8 Cash flow from financing activities (58.8) (35.6) (15.2) 0.5 (0.5) (0.1) 70.7 101.7 134.2 (12.6) 5.4 0.7 Total cash flow 4 1,000 2 500 0 2004 2005 2006 2007 2008 Development in equity and equity ratio DKKm % 900 40 39 800 38 37 700 36 35 600 34 33 500 32 400 EBITDA margin 6.0% 7.3% 8.0% 9.1% 7.5% Operating margin (EBIT margin) 3.5% 4.5% 5.7% 6.0% 4.8% Return on invested capital 10.5% 12.7% 16.9% 15.7% 13.3% Equity ratio 28.5% 25.5% 30.2% 30.9% 32.2% Return on equity 14.5% 25.5% 23.1% 23.8% 17.2% 3,364 3,308 3,442 3,820 4,475 *Restated to changed accounting policies 0 Financial year Financial ratios Average number of employees 6 2,000 Profit before tax Group goodwill 10 8 DKK/EUR rate at 31 December 2008 745.06 Net financials 12 4,000 3,000 Amounts in DKKm Operating profit before amortisation, depreciation and impairment losses (EBITDA) % 3,500 DKKmDKKmDKKmDKKmDKKmEURm Net turnover DKKm 31 30 300 29 28 200 Equity excl. minority interests Equity ratio 27 26 100 25 0 2004 2005 2006 2007 2008 24 Financial year 6 • Profile 09 Profile 09 • 7 Development in average number of employees and operating profit Number DKKm 200 5,000 Development in cash flow DKKm 250 180 4,500 200 160 150 140 100 4,000 120 50 100 3,500 80 Average number of employees Operating profit 0 Free cash flow Cash flow from operating activities 3,000 2004 2005 2006 2007 2008 60 -50 Financial year Development in invested capital end-of-year and return on invested capital 2004 2005 2006 2007 2008 2007 2008 Financial year DKKm % 1,400 22 Development in equity value Net asset value per share 2,600 2,400 20 2,200 1,200 18 2,000 16 1,800 1,000 14 1,600 12 800 10 Invested capital end-of-year Return on invested capital 600 2004 2005 Financial year 8 • Profile 09 1,400 2006 2007 2008 8 1,200 Equity value 1,000 2004 2005 2006 Financial year Profile 09 • 9 Climate consultants with ambitions 10 • Profile 09 Photo: Niels Åge Skovbo By Kathrine Schmeichel For cowi, when it comes to climate, the strategic ambition is nothing less than to become Denmark's leading consultancy firm by 2010 and the leading choice for international customers. The goal is part of a climate strategy launched in 2008, and which, according to R&D Director, cowi Denmark, Stig P. Christensen, is an extension of cowi's ambition to become a leader when it comes to consulting in the three Es – engineering, environment and economics. “We already stand strong when it comes to climaterelated services, thanks to our experience within energy, environment and society,” Christensen says. “As a large consultancy firm involved in over 6,000 projects globally, we can prevent greenhouse gas emissions, as well as make sure that projects take the effects of climate change into account. In that sense, the need to develop responsible climate solutions and our corporate interests are intertwined.” Being a leader when it comes to climate consultancy means also being able to document your own carbon footprint. With that in mind, cowi used 2008 to calculate its direct and indirect in-house climate impact. The information will be used in an action plan, expected to be completed in spring 2009, for how cowi can further reduce its CO2 emissions “without it having a negative impact on our customers or employees”, as Christensen describes it. In addition to working out the company's green balance sheet, cowi's management has also turned to the company's employees to encourage business innovation together with customers and generate ideas about how to protect the climate on a personal and corporate level. cowi has also run a climate awareness campaign in the Danish media, as well as given its financial support to events such as an international congress of climate change researchers, who convened in Copenhagen in March 2009. cowi’s positive take on climate issues can be seen in our consultancy services and in employees’ actions COWI's management has ices s to find innovative business pract loyee ed emp encourag for climate adaptation and mitigation. Photo: Ulrik Jantzen Business activities heavily impacted by climate change • Buildings and construction • Energy production and efficient use • Renewable energy • Transport and infrastructure • Carbon management • Water and environment • Climate and development 12 • Profile 09 Varying levels of climate consciousness As an international company, the level of climate consciousness varies around the globe and influences the possibilities for action locally. “Working conditions and social conditions aren't the same in Scandinavia and Northern Europe as they are in Africa, the Middle East or Eastern Europe,” Christensen says. “And for that reason, we have to tailor our climate goals and advice to local conditions and adjust them according to the importance the climate agenda has for the sectors in which we operate.” @ Stig P. Christensen, R&D Director, COWI Denmark, [email protected] Glo a Global network of local consultants cowi Denmark subsidiaries: Ben C. Gerwick, Inc. (USA) BST Østfyn A/S (Denmark) Buckland & Taylor Ltd. (Canada) Caribersa S.L. (Spain) CAT Alliance Ltd. (UK) cowi Belgium SPRL (Belgium) cowi Consulting (Beijing) Ltd. Co. (China) cowi India Private Ltd. (India) cowi Korea Co., Ltd. (Korea) cowi Mapping UK Ltd. (UK) Flint & Neill Limited (UK) Ocean & Coastal Consultants, Inc. (USA) cowi Norway subsidiaries: Norsas AS cowi Gulf Bahrain Oman Qatar United Arab Emirates cowi Central & Eastern Europe Hungary Latvia Lithuania Poland Russia Serbia Turkey cowi Africa Mozambique Tanzania Uganda Zambia (2010) cowi Sweden Gothenburg cowi’s business strategy is to be the consultant of choice for our customers. Globalisation has increased competition among consultants, but it has also created more opportunities for companies which set up operations close to their customers. Having a local presence is a decisive parameter for competitiveness. This line of thought is the basis for cowi’s business strategy, which has established a tightly-knit, binding network of five regions – the One Company Network. cowi’s regions include Denmark, Norway, Central & Eastern Europe, the Arabian Gulf and Africa. The regional entities and a number of specialist units are grouped together by common goals, values, processes, business systems, knowledge-sharing and employee exchange programmes. The latest reports from cowi’s five regions can be read on pages 14-24. > Profile 09 • 13 An increase in public-sector cy services imply growing demand for consultan will ts investmen related to infrastructure projects. Photo: Ulrik Jantzen cowi Denmark cowi Africa cowi Central & Eastern Europe cowi Gulf cowi Norway Rasmus Ødum to develop its Climate Plan 2015, which will map the city's CO2 emissions. The plan also includes an idea catalogue for urban development focusing on creating green areas and sustainable town planning. On top of climate and infrastructure Climate and infrastructure investments will drive business activities in 2009 14 • Profile 09 By Christina Tækker By the end of 2009, the round, green building at the University of Copenhagen will generate its own green energy. Green Lighthouse will be a sustainable building that will use as little energy as possible for Cityringen metro line cowi handles area and rights utility relocation for Cityringen. In addition to coordinating the relocation of underground cables, cowi, together with professional partners, is also one of the primary consultants to the Copenhagen Metro on all building and construction related to Cityringen. heating and ventilation, and which will produce enough electricity to run its lights. Green Lighthouse is just one of a number of climate-related projects cowi Denmark is working on. cowi is also helping the City of Copenhagen Increasing interest in climate cowi has partnered with the UKbased International Institute for Environment and Development (IIED) on an evaluation of the Least Developed Countries Fund (LDCF) for Danida, the Danish International Development Agency. The evaluation focuses on LDCF-funded National Adaptation Programmes of Action (NAPAs) in developing countries enabling them to adapt to negative consequences of climate change like drought and flooding. “Despite the financial crisis, we have a robust business. Our business activities in Denmark are firmly rooted across industry lines, and we expect 2009 to be busy,” says Rasmus Ødum, Executive Vice President, cowi Denmark, underscoring that cowi Denmark saw solid growth in 2008. “We increased our market share, and that is a position we intend to maintain.” Ødum expects to see increasing demand for services related to the climate change agenda and energyrelated services, as well as construction that reduces CO2 emissions. The climate campaign cowi kicked off in 2008 will serve as the platform for continued progress and development within this business area. Investments in infrastructure An increase in public-sector investments, due in part to the global financial crisis, will imply growing demand for core services related to hospital construction and health services, infrastructure projects including roads, bridges and railroads – all of this based on planning and environmental impact assessments. One example is the Cityringen metro line. In terms of working outside Denmark, cowi stands strong when it comes to construction, bridges, tunnels, marine structures and engi- Profile 09 • 15 A cowi Denmark COWI Africa cowi Central & Eastern Europe cowi Gulf cowi Norway Jan Mosbech Kieler Further into Architects and engineers worked the CO2-neutral, low-energy closely together aiming at creating building Green Lighthouse. Photo: CHRISTENSEN & CO arkitekter a/s frica neering projects. As part of a joint venture with Denmark's Larsen Architects, cowi is involved in the design of two new international airports in Oman. cowi is also taking part in projects building artificial islands and combined bridge and tunnel links. “The projects in the Gulf are of such a magnitude that they require access to a lot of ressources and international partners. We can do this solely because we support all cowi's regions,” says Ødum. It's all about mobility Ødum believes that crucial factors for cowi Denmark in 2009 will be mobility, flexibility and an ability to draw upon resources across the Group. One such example involves cowi's office in India. Using engineers in India to draft technical drawings at a lower cost than would be possible in Denmark creates jobs in both countries. But, Ødum points out, if the customer base changes, the company needs to be ready to react. “This year, we are going to see a good market for public sector infrastructure projects. But the financial crisis will result in less activity among private investors. The challenge will be to find the opportunities and move the resources accordingly so we can keep cowi Denmark on a growth tack and maintain our profitability.” @ 16 • Profile 09 Rasmus Ødum, Executive Vice President, COWI Denmark, [email protected] Changing international donor strategies benefit cowi’s activities in Africa Securing fresh water of supplies remains an important part COWI Africa’s portfolio. Photo: Stig Stasig By Uzi Frank When heavy traffic and poor maintenance threatened to close a stretch of central Africa’s Northern Corridor Route, cowi Uganda won the contract in mid-2008 to conduct a feasibility study and supervise repair work on the two-lane highway. The EUR 4 million contract might resemble so many others in the company portfolio, but according to Jan Mosbech Kieler, Vice President of cowi Africa, “the project represents a textbook example of how cowi’s work in Africa is changing.” While international donors like the EU and Danida used to contract to cowi or other consultants, they now increasingly transfer money and resources directly to local government. Eyes and ears “It’s a donor agenda that prioritises empowering local governments and their role in the execution of donorfunded activities,” Kieler says. According to Kieler, cowi's four national offices in Africa can serve as the company's eyes and ears on the continent. We can draw on their networks, and they can be our point of entry to the local markets. When contracts are secured with local governments, the local offices draw on the expertise and resources of the entire Group, regardless of whether they are dealing with road construction in Uganda, water supply in Zambia and Mozambique or economic management in Tanzania. “Through 2008, we saw a boom in opportunities with governmental bodies in Africa and a significant decline in the number of tenders from multilateral and bilateral donor agencies,” Kieler reports. “This makes having a local presence increasingly important.” @ Jan Mosbech Kieler, Vice President, COWI Africa, [email protected] Profile 09 • 17 “We were able to build a strong network and a good understanding of the market from the start” Peter Hostrup Rasmussen, Vice President, COWI CEE cowi Denmark cowi Africa cowi Central & Eastern Europe cowi Gulf cowi Norway Peter Hostrup Rasmussen By Uzi Frank A few days after meeting with the prime minister of a Central European country as part of a Danish trade delegation, cowi’s Vice President of cowi Central & Eastern Europe, Peter Hostrup Rasmussen, received a phone call. It was the same country’s environment minister, and he also wanted to talk. Rasmussen was surprised – but not too surprised. “I had told the prime minister that if we use our stateof-the-art knowledge, we could help his country cut the energy consumption of its buildings in half,” he says. “That got their attention.” According to Rasmussen, the top-level meeting provides a demonstration of cowi’s growing relevance in Central and Eastern Europe, some two decades after the fall of the Berlin Wall. He explains that cowi was one of the first western consulting firms to start doing business in the new CEE market, setting up operations in countries such as Hungary, Lithuania and Russia. “We were able to build a strong network and a good understanding of the market from the start,” he says. Major projects have included overseeing a highly effi- In the middle of things Bustling Budapest has been I CEE the starting point for numerous COW Photo: Getty Images projects EU funds are expected to boost growth in Central and Eastern Europe cient power plant in Lithuania and overhauling a 500kilometre section of Poland’s rail system. In autumn 2008, the region had grown to 310 fulltime staff members and changed its name from cowi East EU to cowi Central & Eastern Europe to indicate the inclusion of the non-EU countries of Serbia, Russia and Turkey. Rasmussen admits that with seven countries and as many official languages, the vast CEE region faces challenges. The global financial crisis, for example, has already halted the Baltics’ double-digit growth. Despite these obstacles, Rasmussen remains optimistic as he describes a region “in the middle” – geographically in Europe as well as in terms of growth. In the next years, he predicts a second phase of construction, or what he calls “the Big Bang”, will begin, as the EU makes massive amounts of structural funds available. In Poland alone, some EUR 66 billion will be infused over the next five years. “Some people are better at seeing barriers instead of possibilities. But I’m convinced the possibilities have greater value than the barriers,” he says. “And fortunately the new cowi leadership understands this.” @ Peter Hostrup Rasmussen, Vice President, COWI Central & Eastern Europe, [email protected] Major projects: • Power plant in Panavezys, Lithuania • Wastewater treatment in Serbia and Turkey • Overhauling public transport in Szeged, Hungary • Airport design in Vilnius and Riga • Modernising Poland’s railway system Photo: Panavezio Energija 18 • Profile 09 Profile 09 • 19 cowi Denmark cowi Africa cowi Central & Eastern Europe cowi Gulf cowi Norway Ervin Haukrogh By Janne Toft Jensen From a distance, the construction site at Villamar resembles an anthill. Hundreds of workers are in the midst of establishing the luxurious waterfront development in Bahrain's capital, Manama, as a landmark residential complex. The most visible result of the effort is the daily growth of the three gently twisting towers at the heart of the development. The highest of these buildings will top out at 55 stories. Other details of the project include parks, a boardwalk with shops and cafés and villas that seem to float in the air. cowi's role in the prestigious development of Bahrain Financial Harbour has included drawing up the structural design and supervising construction. Villamar is just the latest high-rise project cowi's consultants have won in the Gulf. In Bahrain, a focused strategy to get a foot in the booming market for high-rises has proved fruitful. Ervin Haukrogh, Vice President, cowi Gulf, describes the development as characteristic of the company's activities in the region. “We are focused on growth and on expanding business within cowi's key competencies – not just in construction, but also transport, marine and coastal engineering, energy and environment,” Haukrogh says. “We need to think holistically so that we can offer our customers a whole spectrum of services and so that our employees will continue to see cowi as an interesting place to work.” Next stop: Saudi Arabia cowi Gulf numbers 400 employees working from offices in Bahrain, Qatar and Oman, as well as Dubai, Abu Dhabi and Ajman in the United Arab Emirates. During 2009, the goal is to expand the services to other Gulf countries and open an office in Saudi Arabia. “Saudi Arabia is a promising market,” Haukrogh explains. “Some countries will be hit harder than others during the global recession, but oil exporters will be less affected. For that reason, we need to expand our operations.” Infrastructure projects – such as roads, highway and railway projects – are expected to be a source of growth in the coming years, as are marine and coastal engineering projects. In addition, the coming year will see cowi Gulf focusing on sustainability and on the environment. “Sustainability and the environment are gaining increasing importance in the Gulf, and we know that environmental regulations will become tougher in the entire region,” Haukrogh says. “We need to brand ourselves as a company that offers sustainable ser vices. One way to do that is through partnerships with other cowi regions.” @ Ervin Haukrogh, Vice President, COWI Gulf, [email protected] Reachingnew heights in the Gulf High-rise buildings, infrastructure and artificial islands are fuelling cowi Gulf's fast pace of growth Selected projects – 2008 • Al Zorah, Ajman, UAE • 170 kilometres highway, Oman • New opera house, Oman • Doha New Port, Qatar • Oman International Airport • Bahrain-Qatar Causeway Under construction. The Gulf s to transform region’s real estate boom continue skylines like Dohar in Qatar. Photo: Stig Stasig Profile 09 • 21 Finding Expansion new ways In addition to opening a new office in Kongsberg that offers mapping services, cowi Norway will establish addresses in Drammen and Notodden. cowi Norway sees the expansion as a way to increase its share of the overall consultancy market. A transport division will also be set up in Trondheim. services COWI has provided consultancy e. on fireproofing on Oslo's Opera Hous Photo: Jiri Havran to fight fire cowi Norway has developed fire prevention methods that protect historic wooden houses as well as bold new buildings like the Oslo Opera House cowi Denmark cowi Africa cowi Central & Eastern Europe cowi Gulf cowi Norway Christian Nørgaard Madsen By Christina Tækker The 450 wooden buildings in the town of Røros, about 400 kilometres north of Oslo, stand almost eave to eave. Thanks to a safety design developed by cowi, it is likely they will continue to do so even if a fire breaks out. Most of the buildings in Røros date from the 18th and 19th centuries and are part of the reason why the former copper mining town is listed as a Unesco World Heritage Centre. Similar towns have been reduced to ashes by fire, but should fire break out in Røros, the temperature surge will be captured by a thermal imaging camera installed in the steeple of the town’s church. The camera will then immediately send a signal to the fire station, giving it time to react before the fire catches hold. In addition to the camera, the system includes water mist nozzles mounted in the attics of the buildings. To eliminate the risk of water damage, the pipes are normally empty but release a fine mist when the fire brigade’s pumper is connected to the system. International Specialist Leaders core competencies and an important part of our consultancy services,” says Christian Nørgaard Madsen, Executive Vice President of cowi Norway. cowi Norway had a busy 2008. The 660 employees are spread between 23 offices and organic growth led to an additional 112 in 2008 alone. cowi Norway is one the leading consultants in the hospital construction field, which continues to be an area of focus. Planned activities in 2009 include St Olav Hospital in Trondheim, the New Molde Hospital, Nordland Hospital in Bodø and a new children’s ward at Ålesund Hospital. “The challenge is to meet hospitals' needs for ensuring care, comfort, efficiency and quality,” says Alvin Wehn, a cowi health services co-ordinator. “We have a lot of experience when it comes to designing hospitals and all their various functions – operation theatres, labs, psychiatric departments, patient rooms and service divisions.” Fire is a major concern in Norway where many I has developed a comprehensive buildings are made of wood. COW fire suppression plan for the town of Røros. Photo: Crea cowi began designing the system in 2001 and completed installation in 2008. Fighting fire with purified air The Røros fire protection project is just one of several cowi Norway is involved in. At hospitals in Trondheim, Molde and Ålesund, cowi designs apply the latest technology – Hypoxic Air Venting (HAV) – as a method of preventing fire and Fire protection for wooden buildings explosions in rooms where flammable liqcowi Norway was the first company in the uids are stored. world to come up with fire suppression plans In some hospitals, the same technology for entire towns that required only minimal is also used as a way to reduce recuperachanges to historic wooden buildings. In addition times after operations or rehabilitation. tion to heat-sensitive cameras, cowi, together HAV is a method of filtering recirculated with its partners, has developed a water mister air in rooms then lowering its oxygen consystem known as ‘flashover suppression’ used tent as a way of preventing common matein the stave churches. rials from igniting. cowi has also drawn up the specifications for installing HAV in four pre-planned hospitals in Ålesund, Molde, Tromsø and Bergen as well as in control rooms and museums. “Fire is a serious problem that can destroy lives as well as buildings. Today, fire prevention is one of our Private sector slow down cowi Norway expects 2009 to be a busy year in other areas of public sector development such as water, environment and infrastructure projects like roads and railways. One example of planned activity is an extension of the Alnabru Terminal, a hub for container shipping in Norway that plays a key role in the distribution of goods throughout the country. The project is being carried out together with cowi Denmark and ETC Germany. “It’s no secret that the market isn’t going to grow as fast in 2009 as it did in 2008,” Madsen says. “I foresee growth in public sector construction activities as well as projects relating to infrastructure, waste water treatment, environment and power. Private construction, however, is going to decrease.” @ Christian Nørgaard Madsen, Executive Vice President, COWI Norway, [email protected] “Fire is a serious problem that can destroy lives as well as buildings” Christian Nørgaard Madsen, Executive Vice President, cowi Norway. 24 • Profile 09 The foundation for the cowi Group’s business operations is our ability to provide multidisciplinary services for local markets as well as specialised services for the global market. While we offer our full palette of services to local and regional customers, the International Specialist Leader (ISL) services are marketed at a global level. When servicing local markets, geographic proximity to customers and a multidisciplinary approach create a decisive advantage. When it comes to providing ISL services, the ability to offer the highest international standard becomes apparent. It is the interplay between highvolume local business and specialised international niche projects which makes the cowi brand unique. The latest reports from cowi’s five international specialist services can be read on pages 26-43. > Profile 09 • 25 e l a c s c i t n a g i ag e n i Mar n o s t c e j pro Chinese workers are close to completing the work on nine kilometres of block walls in the Lusail development. Photo: Stig Stasig The Lusail project has involved land reclamation on a massive scale, necessitating the shifting of approximately 23 million m3 of material for the construction of islands, beaches and canals. Photo: Stig Stasig Enormous artificia l islands, new coastlines and major oil terminals – cowi is where the action s big marine project to s e m co it n e h is w International network Marine and coastal engineering employees are among cowi’s most internationalised. With a project portfolio that spans the entire world, they conduct much of their work online, creating a virtual network that makes the most of diverse cultural and national backgrounds. By Janne Toft Jensen Mogens A. Hviid Standing at the top of what will in a few years be a bustling city in the Gulf, the vastness of the view is breathtaking. As far as the eye can see, gently sloping, sandy land is interrupted only by steep block walls that drop into dried-out canals. The heavy construction equipment appears as mere toys in the enormous area. The new development to the north of the capital city of Doha, Lusail, measures 22 square kilometres and is Qatar’s largest mixed-use development to date. In just a few years, as many as 450,000 people will live, visit and work here. The seven kilometres of new coastline and the five new islands will be the site of houses, high-rises with luxury flats, office space, an entertainment district, sports facilities including a golf course, hotels and much more. “We’re turning a flat beach into an exciting new area. A new town with amenities of the highest standards and an exciting green environment located on the outskirts of Doha will no doubt appeal to local, regional and international investors and businesses," says cowi project director Mogens A. Hviid. Holding back the ocean For the time being, the final phase of the land formation and coastal 28 • Profile 09 protection phase has the area writhing with activity. Dust and an infernal racket bellows out of 25 stone crushers chewing their way through the limestone subsurface. The debris left over by their work will be crushed further, then sorted and used as landfill in the last part of the development. Although the project is scheduled for completion several years from now, most of the plots of land in the Lusail development have already been sold. cowi has been involved in the project since early 2004, initially as sub-consultant to US-based Bechtel during the master planning and subsequently as sub-consultant to UKbased Halcrow for design and supervision of all infrastructure works. cowi has been responsible for the geotechnical and hydraulic studies, environmental assessments, all marine and coastal structures and a total of nine marine bridges. Keeping the water back while construction crews dug canals and spread new soil required the entire area to be put behind some ten kilometres of temporary bunds. When these bunds are removed in 2009 and the water cascades into the canals, it will be up to the nine kilometres of block walls, 23 kilometres of rock revetments and four kilometres of sandy beaches to keep the land and the sea separate. A growth business Land and sea are the two keywords for Ole Juul Jensen, Director, Marine and Coastal Engineering, an organisational unit of cowi that works with everything from land reclamation and coastal and waterfront development to ports and marine terminals, special marine structures and immersed tunnels. One of the primary activities for Juul Jensen and the 250 employees in this field of services is land reclamation. Their projects span the globe, but for the time being most of them are located in the Arabian Gulf. Other major areas of engineering services include gas and oil terminals and foundations for offshore wind turbines. A recent project is the design of a flood wall for safeguarding New Orleans. cowi’s marine and coastal consultancy activities have grown considerably over the past ten years, and annual turnover is now over EUR 33 million. Projects are carried out from 12 offices and subsidiaries in Denmark, the US, Qatar, the UAE and India. Recently, the goal of becoming one of the three largest marine engineering companies was reached, as the internationally recognised Engineering News-Record (ENR) named cowi the consultant with the largest overseas turnover in the world within the fields of ports, marine and coastal structures. In order to ensure continued growth, marine and coastal engineering is constantly expanding. Most recently another 20 employees were hired to work with CAD, numerical modelling and engineering at cowi’s office in India. And 2009 could see further expansion by growth and acquisition. Turns away orders In the coming years, Juul Jensen would like to see cowi win bids for gas and oil terminals in the receiving ends of the exports from the Gulf. Another rapid growth area in focus is offshore wind farms that are likely to see tremendous growth in coming years. “The primary factor that limits our growth is the number of qualified staff we can recruit,” he says. “As it is, we have to turn away potential orders every week. It is especially hard to find international project managers who are willing to travel and live overseas as much as the job requires.” Despite the situation, Juul Jensen’s outlook is optimistic. “The market for marine and coastal consultancy services has never been better. Our brand is growing stronger, and I believe that by reaching this international position, we will be an attractive workplace for many professional marine, geotechnical and coastal engineers.” @ @ Ole Juul Jensen, Director, Marine and Coastal Engineering, [email protected] Mogens A. Hviid, project director, [email protected] Profile 09 • 29 came New plan e s an ra s a advan nd scanne d the late st r t ag e in the s secure a n mapm competitiv e akin Photo : Mor g sector. ten L arsen Facts about OCC Ocean and Coastal Consultants began in 1983 as a small coastal engineering consulting firm and became a member of the cowi Group in 2007. Today it maintains offices in Connecticut, Massachusetts, New Jersey and Aruba. OCC provides its services to a wide variety of customer groups. Smile , cowi you’re in a map By Ka thrin John Chapman By Henrik Larsen Engineers certified as divers give Ocean and Coastal Consultants an advantage The Manhattan skyline and the Statue of Liberty emerge from the morning fog over Upper New York Bay, but the three engineers from Ocean and Coastal Consultants hardly take notice of it. For them, a waterfront view – this one from an oil terminal in New Jersey – comes with the job. Group leader Mike Ajemian and his colleagues are engineers by trade. But because they are also divers, they are uniquely qualified to inspect the steel piles supporting one of America’s largest petrol tank farms. “We start by measuring them all the way up to the pier to make sure that they still match the original blueprints. Then we dive and check the steel piles from top to bottom and take pictures of the most seriously damaged areas,” explains Ajemian. “There’s nothing like a picture of a heavily corroded steel pile to convince a customer he needs to do something about his facility.” As part of the cowi Group, Ocean and Coastal Consultants operates along the East Atlantic Coast from Maine in the north to Florida in the south. Competition among consulting engineering firms is especially tough in the eastern US, but OCC is one of the industry leaders. And its diving engineers are a service customers are willing to pay extra for. “Our diving engineers get a firsthand view of what the problem is. That makes a difference when it is time to decide what repairs or changes need to be made,” says John Chapman, Vice President and Senior Project Manager. OCC, based in the state of Connecticut, has a staff of 25 diving engineers. 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Photo: COWI Facts about photos • Orthophotos: Adjusted aerial photographs suitable for use as maps. • Oblique aerial photographs: Aerial photographs of an area taken oblique from four directions. • 3D city models: Digital models composed of contour models, orthophotos and 3D objects such as buildings. • Height models: A digital 3D model of landscapes. • Other products: Vector maps, technical maps and topographic maps. bigger ... Bridge building business booming Big, With some of the world’s biggest and longest bridge projects on its order books, the International Specialist Leader service Major Bridges is living up to its name The village of Askar, Bahrain. 's longest bridge, In a few years, this is where the world the Qatar-Bahrain Causeway, will make land. Photo: Stig Stasig mega Construction of Busan-Geoje fixed link, Korea. Photo: COWI Kong, Sutong in China, Busan-Geoje in Korea and Sungai Johor in Malaysia. According to Director for Major Bridges, Lars Hauge, it is not a coincidence that cowi is involved in some of the world’s biggest bridge construction projects. “One of our stated goals is to play a role in at least 75 per cent of the mega-projects that are available to us. We want to be in the top three when it comes to bridge consultants. We’re very close to reaching Arabia. But, starting in 2013, a direct motorway connection will make it possible to drive there in 30 minutes, thanks to the 22-kilometres worth of bridges and the 18-kilometre causeway. Also being considered is a rail line. By Janne Toft Jensen There is hardly a breath of air along the beach in Askar, a village just south of Bahrain’s capital city, Manama. The small boats moored in the shallow water bob silently, and nearby a group of boys is playing in the water, but they can do little to dispel the blanket of sleepiness that sits on the town. It is hard to imagine that this quiet salt marsh stretching from Askar to the north will become a traffic nexus in the near future. Just a few hundred metres from where the boys are playing, the world’s longest bridge – the Qatar-Bahrain Causeway – will make land, helping to create jobs and tying the Gulf region together. The bridge’s other end – the peninsula of Qatar – is 40 kilometres away and is well over the horizon. Right now, getting there requires a five-hour detour through Saudi Lars Hauge The contruction of Stonecutters e for the design of e in Hong Kong. COWI is responsibl Bridg the towers, steel superstructure and stay cables. Photo: COWI 36 • Profile 09 Dizzying pace Some 150 kilometres away, in a 13th floor office in Qatar’s capital Doha, the atmosphere is anything but sleepy. The world’s longest bridge needs to be completed in five years, and it is here the plans to make sure that happens are being drawn up. cowi has been engaged by the Qatar-Bahrain Causeway Consortium to design the bridge. Some 40 employees from all over the world are working overtime to come up with the concept and basic design. That number is expected to reach 200 in 2009 when the detailed design and construction phase gets under way. “This is a gigantic project,” says project director Mogens A. Hviid. “We’re working with incredible amounts of material – the bridge section alone is going to require some 900 precast concrete sections weighing some 2,000 tonnes each.” As an example of the pace a project of this magnitude requires, Hviid says that in order to stay on schedule, one of these huge concrete elements needs to be produced and installed in its final position each day during the peak of the construction phase. “That makes risk management and logistics – and the project as a whole – a major engineering challenge.” cowi has been involved in the project since 2001, during the early stages when the idea for the bridge was being hatched. At that time, the consultants were responsible for preliminary studies and environmental assessments. The final design includes five bridges, six embankments, two rest islands and two navigation channels, each element meeting the strict requirements established to protect the vulnerable marine ecosystem in the narrow, shallow strait between the two countries. Multiple mega The Qatar-Bahrain Causeway is just one of several “mega-projects” that cowi's Major Bridges unit, one of cowi’s International Specialist Leader services, is working on, including the Stonecutters Bridge in Hong this goal.” cowi’s big bridge activities have experienced rapid growth over the past decade and now employ a staff of about 300. The projects are overseen from offices in Denmark, Norway, Qatar and China, as well as from subsidiaries Buckland & Taylor in Canada, cowi Korea in Korea and Flint & Neill in the UK. According to Hauge, cowi has the capacity to work on any phase of a bridge construction project. “However, one of our strong sides is the technical – the hard-core engineering," he says. “And that’s also what makes it fascinating. We draw up the blueprints and then someone else goes out, takes some reinforcing steel and builds the world’s longest bridge based on our drawings.” The ambitions in bridge consultancy do not stop with the world’s longest bridge, however. Hauge has set his sights on expanding the number of geographic areas where the company is active and on landing more projects just below the “mega” classification. Those goals have him on the constant lookout for new companies to acquire, the latest one being the acquisition of suspension bridge specialists Flint & Neill in the UK in December 2008. Because when it comes to the future of bridge building, the future does not merely look bright, it also looks big. Lusail Ring Bridges, @ @ Qatar. Photo: COWI Lars Hauge, Director, Major Bridges, [email protected] Mogens A. Hviid, project director, [email protected] Profile 09 • 37 Giant tunnels ma ke congestion disappear As environment and infrastructure investments increase in importance, so too does the demand for big tunnels By Christina Tækker Doha’s traffic has a reputation for being bad. But if predictions hold, congestion in Qatar’s capital city is nothing compared with the traffic situation down the road. Within the next 20 years, the number of cars in the Gulf state is expected to increase three-fold. Rapid growth that includes two new city districts housing 250,000 people and a new airport calls for a plan. How that plan will look has yet to be determined. But Qatar’s Urban Planning & Development Authority has selected cowi to conduct a preliminary study of how infrastructure can be improved and to draw up suggestions for possible courses of action. cowi consultants expect that dealing with the increased traffic will require running the main northsouth thoroughfare through an eight-kilometre, eight-lane tunnel under Doha Bay. “Our studies show that most of the traffic will have to go through a tunnel rather than over a bridge, even though it is more expensive,” says cowi project manager Ejgil Veje. “Part of the reason for that is the strict requirements set out by the New Doha International Airport. The other reason is that a bridge would restrict sailing on the bay, and sailing is predicted to become an important tourism activity.” Big tunnels in high demand The Doha project is just one of sev- eral major tunnel projects cowi is involved in. In Venezuela, cowi is designing a fixed link across the Lake Maracaibo, which includes a four kilometre long immersed tunnel. Whether urban developers choose to build a bored or immersed tunnel, they have good reasons for including tunnels in infrastructure projects. One of them – especially important in areas with a lot of shipping traffic – is that tunnels are less disruptive to surface activity. Tunnels are also often easier on the environment, easier on the eye and are less disruptive to existing traffic patterns. Despite the global financial crisis, cowi saw increasing interest in tunnels in 2008. “Tunnels are becoming more popular in cities and urban areas as environment and infrastructure investments take priority,” explains Anton Petersen, Vice President, Bridge, Tunnel and Marine Structures. “Tunnels are becoming more popular in cities and urban areas” Anton Petersen, Vice President, Bridge, Tunnel and Marine Structures Anton Petersen 38 • Profile 09 Tunnels – like Copenhagen's Metro - are becoming more popular in cities and urban areas as environment and infrastructure investments take priority. Photo: Stig Stasig Profile 09 • 39 The sultanate’s Head of Department for Tunnel & Underground Structures, Torsten Mølgaard, expects the level of tunnel building to remain high in the next few decades, especially for bored tunnels. “Twenty years from now, you’re not going to see a single city with over a million people that doesn’t have a subway system. Right now it’s Europe, but Asia – led by China and India – are next.” Round the clock tunnelling cowi is involved in tunnel projects around the world. Most recently, we were chosen to carry out a review of the 28-kilometre long tunnel under the Strait of Gibraltar. Tunnelling in the rock and soil under the strait will require the development of new technologies. On top in tunnels No place is this clearer than in Scandinavia. In Denmark, cowi is responsible for a number of tasks in conjunction with construction of the Copenhagen Cityringen metro line. In addition to handling area and rights (A&R) and utility relocation, cowi is also lead consultant for all civil works. And in Stockholm, the capital of neighbouring Sweden, cowi has led planning for construction of a 300 metre immersed tunnel for the city’s new six-kilometre Citybanan subway. cowi is a world leader when it comes to immersed tunnels and is active internationally in projects involving bored tunnels over 15 metres in diameter. “It’s a challenge, because the tunnels are getting bigger and bigger,” Petersen says. “We’re building tunnels today at water depths and on soft surfaces where it was impossible to build tunnels just a few years ago. That forces us to constantly think of new ways of doing things.” Amongst the new techniques cowi employs are soil reinforcements where cement is mixed with sand and steel fibre reinforced concrete to avoid the rust that arises from traditional methods. @ new airports Development of two international airports in Oman is one of the biggest projects in cowi’s history. It also makes the company one of the world’s largest airport consultants Anton Petersen, Vice President, Bridge, Tunnel and Marine Structures, [email protected] A view over Oman's capital, Muscat, o: COWI rt will enter service in 2012. Phot airpo new where a By Henrik Larsen Visualisation of entrance to the tunnel in Doha. Photo: COW 40 • Profile 09 I Airplanes still take off and land at the airport in Muscat, but after 35 years in service, the main airport serving Oman’s capital is beginning to groan with age. So it was a welcome sign of relief for travellers when, in the summer of 2008, the first million cubic metres of landfill was spread out on the site of a new runway and new access roads. If the development of Muscat International Airport – with its new passenger terminal, two runways, cargo terminal, 6,000 parking spaces and more – is one of the biggest projects in cowi’s history. The project was awarded jointly with Larsen A&CE. Once the first planes start landing in Muscat in 2012, the airport will have an annual capacity of 12 million passengers with the ability to expand its capacity up to 48 million. The cowi-Larsen joint venture is also working on an expansion of the airport in Salalah, Oman’s second largest city. “The Oman project has given us a unique opportunity to build up a lot of expertise,” says Jens Christoffersen, Vice President for Railways, Roads and Airports. “We’re at the point where we can handle nearly all types of consultancy projects in all phases of airport development.” Profile 09 • 41 Multi-year project Only the strong survive The market for airport construction is, according to Christoffersen, somewhat atypical due to the complexity and the large number of disciplines involved. “Based on turnover outside the domestic market, cowi is one of the ten largest airport consultants in the world, and the competition is extremely tough. Building airports is such a complex task that only the biggest multidisciplinary consultancy firms that are truly experts at their trade can hang on at the top.” As proof of the quality of cowi’s work, Christoffersen points to the new cowi-designed airport in Hyderabad, India, which opened in early 2008 without a hitch. “Everything worked the way it should. The customer can’t stop talking about how well it performs." Sustainable design cowi’s design for the Oman airports include a number of climate-friendly details, due to increasing attention placed on climate change by the Gulf states. One of the biggest power savers will be a district cooling system that will consume 50 per cent less electricity than decentralised air conditioners. Other measures to reduce cooling needs include highly insulated materials in the building envelope and making sure that the buildings are tightly sealed. New ways of working cowi’s turnover on airport construction has tripled within the past three cowi, together with Larsen A&CE and Copenhagen Airports, was awarded the Oman airport project in 2005. At the end of 2008, cowi Larsen JV entered into a contract for construction supervision of the airports, as well as services for the remediation period after the inauguration in 2012. years, and according to Christoffersen, cowi makes a major effort to cultivate partnerships at all levels with customers. “We work with what we call ‘loops’,” he says. “It means that we regularly revisit the demand for the project with the customer in order to make sure we are aligned and heading in the right direction. Developing a new airport can take between five and ten years, so you can’t assume that the demand at time of inauguration is the same as the needs you started out with.” No levelling of growth in sight With forecasts for air traffic continuing to point skyward in the coming decades, Christoffersen expects airport construction to follow suit, despite the current global financial situation. “We’re determined not to let the experience we’ve gained in Oman go to waste, and we’re constantly on the lookout for new orders. We’ve got a good pipeline of projects that includes an airport in Eastern Europe and a new terminal to the Oslo Airport in Norway. The new terminal will increase the capacity from 20 to 28 million passengers, and it is expected to be completed in 2013.” @ Jens Christoffersen, Vice President, Railways, Roads and Airports, [email protected] From 2012, the airport in of 12 million Muscat will have an annual capacity passengers. Photo: Stig Stasig Jens Christoffersen 42 • Profile 09 Profile 09 • 43 Visit www.cowi.com cowi’s annual report goes online cowi’s Annual Report 2008 will be published solely in an online version that can be downloaded as of 23 April from our website, www.cowi.com. The annual report contains key figures, the management's review, the financial review and accounts as well as the intellectual capital report. And for the first time, cowi will present a green account of its impact on the environment.
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