Construction World December 2017

The business magazine for the construction industry

DECEMBER 2017

WORLD

CR O WN

P U B L I C A T I O N S

SPECIAL ISSUE Best Projects

CEMENTING FUTURE GROWTH in the CONSTRUCTION industry

CONTENTS

22

32

40

56

59

64

22 BRT Cable Stay Bridge over M1 Highway WBHO won the Civil Engineering Contractors category with its BRT- only bridge that connects Sandton and Alexandra.

32 Menlyn Reconfiguration Project The massive project that enlarged Menlyn Shopping Centre to 172 500 m 2 by Concor Buildings, was the winner in the Building Contractors category. 40 PwC Tower The cement and concrete solutions that AfriSam offered for Johannesburg’s new icon, the PwC Tower, won the Specialist Contractors or Suppliers category. 56 140 West Street This project, which adds to the rich architectural fabric of Sandton, entered by Paragon Architects, was the architectural winner in the Professional Services category. 59 Mount Edgecombe Interchange Upgrade SMEC South Africa was the consulting engineer winner in the Professional Services category with its impressive interchange project. 64 Alice Lane Phase Three A project that adds a green lung to the ever expanding Sandton, entered by Paragon Architects, was the winner of the AfriSam Innovation Award for Sustainable Construction.

ON THE COVER

Construction World spoke to Richard Tomes, Executive, Sales & Marketing at AfriSam about the challenges and opportunities for cement companies in this challenging time. “If you take readymix, aggregates and cement into account, AfriSam is an attractive business. We consume a large percentage of our own cement through our readymix business, and in turn we consume a large percentage of aggregate though our readymix business,” says Tomes. Read the interview with him on pages 4 to 6. Pictured: AfriSam was the concrete supplier of choice for the construction of the iconic PWC Tower in Midrand.

CONSTRUCTION WORLD DECEMBER 2017

COMMENT

2 17 BEST PR O JECTS

Added to this is the fact that the country is still facing major social challenges. One such problem is the space planning from the past which is now causing to be a major headache for logistics – and for future engineering. “Transport engineering hasn’t found its proper place,” he stated. “We can’t keep building further.” In other major metropolitans across the world, such as New York and Mumbai, he says, the density figures are much higher: 9 600 people per square and 32 814 respectively. In stark contrast, in the Western Cape (for instance) there is a mere 1 293 people per square kilometre. Yet, despite this, the country is facing severe urban challenges with landfill and water issues. The collusion that took place during the construction of World Cup infrastructure is a contributing factor to the mistrust that exists between the government and the private sector and may be hampering engineering solutions. In general, says Manuel, “There is undoubtedly so much corruption, and so much violation of legislation that what South Africa needs is a new approach to engineering.” He uses China as example of how engineering could be implemented for the betterment of the country’s citizens. “It’s about finding solutions that I think will bring engineering back into fashion,” says Manuel. Bringing engineering back into fashion This is a special Best Projects issue that showcases how excellent South African engineering and construction can be. The projects in especially the civil engineering contractors and professional services categories, illustrate how engineering can be used to improve the lives of South Africa’s people. These categories include projects such as an urban bridge that connects the people from Alexandra to Sandton, water care works, the construction of a major bulk sewer for the Cape Flats, and various road projects to connect the country’s people. Speaking at a recent event for the South African Institution of Civil Engineering Young Member leadership, former Finance Minister and Minister in the Presidency, Trevor Manuel, said that unless South Africa deals with the widespread corruption, the country will be unable to provide the engineering services to its citizens that it should.

Sponsors AfriSam was the main sponsor of this event – and has been a supporter of this initiative from the start. This year it was joined by the gold sponsor (Federated Employer's Mutual Assurance Company), the silver sponsor (MBA North) and the bronze sponsor (Den Braven). We thank the sponsors who make this event possible.

Amit Daweerangen, General Manager Readymix Concrete at AfriSam

Ndivhuwo Manyonga, the CEO of Federated Employer's Mutual Assurance Company (FEM)

Mohau Mpomela, the executive director of MBA North.

Averil Webbstock, the MD of Den Braven.

Wilhelm du Plessis Editor

@ConstWorldSA

www.facebook.com/construction-worldmagazinesa

EDITOR & DEPUTY PUBLISHER Wilhelm du Plessis constr@crown.co.za ADVERTISING MANAGER Erna Oosthuizen ernao@crown.co.za LAYOUT & DESIGN Lesley Testa CIRCULATION Karen Smith

PUBLISHER Karen Grant PUBLISHED MONTHLY BY Crown Publications cc P O Box 140 BEDFORDVIEW, 2008 Tel: 27 11-622-4770 • Fax: 27 11-615-6108

TOTAL CIRCULATION: (Third Quarter ’17) 4 874

The views expressed in this publication are not necessarily those of the editor or the publisher. PRINTED BY Tandym Cape

www.constructionworldmagazine.co.za

2

CONSTRUCTION WORLD DECEMBER 2017

3

CONSTRUCTION WORLD DECEMBER 2017

COVER STORY

CEMENTING FUTURE GROWTH

The current economic and political climate in South Africa, the African continent and also in the rest of the world, make it tough for especially smaller players in the cement industry. Wilhelm du Plessis spoke to Richard Tomes, Executive, Sales & Marketing at AfriSam about the challenges and opportunities for cement companies in this challenging time.

AfriSam is an 83-year old business. Its newest kiln was installed at Ulco, its flagship plant in the Northern Cape.

Global cement picture According to SAFCEC’s State of the South African civil engineering industry report for the second quarter of 2017, the world economy gained momentum in the fourth quarter of 2016 – especially in advanced economies such the USA and UK. However, economic performance amongst emerging economies has remained mixed. This uneven economic performance in especially the emerging markets makes this period challenging for multinational cement companies. Luckily for them the global outlook is anchored by the positive trends in the major markets of China, India and the USA – which offset the poor performance elsewhere. The large cement producers have diversified their portfolios in a strategic effort to capture growth in such markets. The performance in these high- growth areas is vital to the financial health of these groups. “Of the world’s five billions tons of installed cement capacity, China, an emerging market, demands two million tons to feed the needs of its increasing population,” Tomes says. China is followed by India and the USA, with Europe (as a collective) fourth in the cement demand stakes. “Africa’s combined cement demand is similar to Europe’s. The continent has seen good volume growth, but in South Africa,” says Tomes, “the demand has been flat. “Countries that have an increased cement appetite include Pakistan, Turkey, Vietnam, India, Kenya, Switzerland, Germany, Poland, and the USA. South Africa, Chile and Spain have performed badly. The worst performer is Brazil where cement sales have fallen by 9% year- on-year. This was caused by political uncertainty, the impeachment of the president and ratings downgrades. “It is worrisome because we are seeing similar trends in South Africa,” he says. SA’s historical reality “For many years,” explains Tomes, “the local cement industry was run as a government sanctioned cartel – it was protected as it was regarded as strategic.” The country was in isolation and did not trade with the rest of the world. During this period, the way cement companies set up new capacity, was in the framework of a cartel and all the players maintained market share. “The regional dominance that various cement companies had, was based on this cartel- thinking,” adds Tomes.

“When South Africa became a democracy in 1994, the country’s economy had to become efficient as it now had to trade with the rest of the world,” says Tomes. Between 2002 and 2007 the country ran out of cement capacity and had to start importing cement, while the opportunity attracted new entrants. “Demand outstripped supply – there was a time when cement companies made EBITDA margins of between 30 and 40%. So if you are a Mr Dangote or a Chinese player, and there is no or little growth in the rest of the world, you would want to invest in South Africa,” adds Tomes. “We attracted new players in the process – Sephaku and Mamba Cement. As demand has now dropped off significantly, competition is fierce – everyone is scurrying for market share. In fact, cement prices are now back at levels last seen in 2009,” Tomes says. A false sense Tomes explains that between 2002 and 2007 cement demand in South Africa doubled as World Cup stadia was built, and the country had various infrastructure projects including SANRAL’s road projects, the Gautrain, and airport upgrades. “It illustrates what is possible when there is economic confidence. The country had a successful political transition, peaceful democratic elections, hosted the 1995 rugby World Cup and was to host the first FIFA World Cup on the African continent in 2010. The industry had great momentum and confidence – and the major contractors did well on the back of confidence and good infrastructure investment,” he says. Unfortunately the confidence and momentum did not last. “Economists and industry experts indicate that confidence levels are back at levels we experienced in the run-up to the first democratic elections in 1994.” The political situation is the primary cause of this uncertainty. Last year’s local government elections yielded a few ‘fragile’ coalition governments in some of South Africa’s major metros around the country. In some instances, as witnessed in the Port Elizabeth metro, a failure to develop a good working relationship across party lines has impacted service delivery, affecting infrastructure spend, and with that cement demand. There are concerns about who is likely to emerge as the ruling party’s leader and possibly the next president of the country, should the ANC win the elections in 2019.

4

CONSTRUCTION WORLD DECEMBER 2017

The company has the capacity to produce 4 million m³ readymix concrete annually from its 40 strategically located plants across the country.

start matching each other by 2020. A more realistic view is to use the long term annual compound growth of 2,5%, meaning South Africa will only run out of capacity by 2030,” Tomes explains. The situation could even be worse as this calculation does not take into account the establishment of cement factories in Namibia and Mozambique which until now have not been able to successfully export cement across their borders into South Africa. Challenges facing the cement industry The biggest challenge, says Tomes, is lack of growth, which obviously causes low demand. “None of the South African cement companies are operating at optimum capacity levels,” he says. As the cement producing industry is an energy intensive process, the proposed energy tariff increases will mean that energy costs will spike. The cement industry won’t be able to recover this cost through price increases as the market is already oversupplied. We will see more margin squeeze happening,” Tomes cautions. The availability of skills is a major challenge. “Skilled people are reaching retirement age – to replace these with younger, skilled and experienced people is proving to be a challenge. If you add our desire to transform while not having access to the necessary skills, it means that you are forever on the back foot. “We are faced with the challenge that our schooling system is not yielding enough learners with sufficient maths and science marks to get the engineering qualifications that we need. Transformation is always going to be a challenge unless we get that right,” says Tomes. The impact on AfriSam AfriSam is an 83 year old business. “The newest kiln was installed at Ulco, AfriSam’s flagship plant, which is already between 30 and 40 years old. From an energy efficiency point of view we do not have the most efficient plants,” Tomes explains. The advantage of Ulco is that its mining costs are fairly low. It mines into a hill and uses less fuel as the trucks that carry payloads drive downhill. “From a pure technology and plant perspective, if we did not have the mining advantage, we would struggle to remain competitive against some of the new players,” Tomes admits. New entrants have installed modern kilns that are a bit more efficient; this slight advantage is however offset in certain markets when one considers haulage and transportation costs. “AfriSam is also fortunate as the Ulco plant is located in an area where there are no other plants close by. It has a particular reach – Free State, Northern Cape, Eastern Cape and some coastal areas where the newer entrants are not present. This is an area where AfriSam can compete well, but demand in these areas is unfortunately not sufficient, so we are forced to haul the product over long distances in order to achieve the desired capacity utilisation required to sustain the plant. “The Gauteng market, even though demand is not great in terms of growth, still accounts for 40% of the country’s cement consumption,” says Tomes. “It is fiercely competitive. All the cement producers compete here and apart from the new entrants, independent blenders who mix fly ash and cement are also competitors. “Fortunately for AfriSam, it is a diversified business. “It does not only rely on cement – it has a good

All this uncertainty is causing many investors and potential investors to simply just play a wait and see game. At the recent Concrete Conference held in Johannesburg, attended by all the major civil engineering and built environment associations, Industry Insight shared the massive decline in tender activity, with more than double the amount of construction projects either being postponed or cancelled when compared to the previous year. Fortunately for South Africa, shortly after our miraculous and peaceful transition to a democracy, the country had the 1995 Rugby World Cup and the 1996 Africa Cup of Nations. These two events were fantastic marketing events for the country and gave the investor community a massive confidence boost. This time around there is nothing on the horizon that seems to suggest that confidence will return in the short term followed by an uptick in construction activity. The reality The mostly negative sentiment has a direct bearing on major civil engineering contractors. With the economic outlook subdued, results are down all round. “The industry as a whole is not stable because there is not enough work. This feeds back to the cement and concrete industry. Private development still happens, but is nowhere near enough. From a civils perspective Limpopo, Mpumalanga and KwaZulu-Natal are still doing well. This is not the case in the Eastern Cape. Gauteng, which consumes 40% of the national cement demand, is significantly down,” says Tomes. Even though the South African hardware retail sector has been showing reasonable growth in the last while, they too are now starting to see their numbers decline, Tomes says. An uncertain South African reality Tomes says that South Africa has an installed capacity for cement production of 20 million tons. “Current demand is at around 13 million tons – this means that we have an oversupply of just over 30%. “If one takes an extremely

aggregate business which generates better returns than the cement business, in terms of return on capital, and has been able to contain its costs much better because its production is not as energy intensive as cement. It has a capacity to produce 10 million tons and is currently running at 80% of capacity,” says Tomes. He adds that the Western Cape

optimistic view and assumes that South Africa can make a miraculous recovery and achieve economic growth rates of 7,5% per annum (which has never been done before), then capacity and demand will

Richard Tomes, AfriSam’s Sales & Marketing Executive, stresses the need for consolidation in the local cement market.

5

CONSTRUCTION WORLD DECEMBER 2017

COVER STORY

“We are faced with the challenge that our schooling system is not yielding enough learners with sufficient maths and science marks to get the engineering qualifications that we need. Transformation is always going to be a challenge unless we get that right.” struggling to keep up with demand, but more recently, since the water crises, the outlook there is also starting to look a bit bleak. AfriSam’s readymix business vies with Lafarge as the biggest readymix producer in the country. “If you take readymix, aggregates and cement into account, AfriSam is an attractive business. We consume a large percentage of our own cement through our readymix business, and in turn we consume a large percentage of aggregate though our readymix business. We have a channel and a route-to-market in the form of our readymix business which can produce about 4 million cubic metres of concrete per annum,” says Tomes “AfriSam is holding its own in terms of its ready-mix concrete and aggregates businesses, but is facing much stiffer competition on the cement side because of the oversupply situation and newer entrants with slightly more energy efficient plants,” he admits. The impact of multi-national mergers on smaller players Tomes says that the consolidation that is seen around the world, is now increasingly also happening in Africa. “Lafarge and Holcim consolidated their operations, while Heidelberg is another multinational with a significant presence in Africa. The Dangote Group has roughly 30 million tons of installed capacity in Africa. “Multinationals have a diversified portfolio around the world so they can take advantage of growth in areas of increased demand, and offset this against low growth areas. Players like AfriSam and PPC are concentrated on the southern tip of Africa. For many years it was ok: South Africa was the leading economy on the continent, but things have changed,” he says. “Smaller and independent players must either make peace with the fact that they are a small player and therefore operate very lean structures whilst looking for opportunistic growth; something which is proving extremely difficult at the moment or they need start to think about consolidation, as this will enable them to strengthen balance sheets collectively and set them up for the growth period which lies ahead,” says Tomes about the proposal to merge with PPC. “The African continent, despite some of its challenges, still

AfriSam is a diversified business. Its Aggregates business has the capacity to produce in excess of 10 million tons of aggregate annually.

remains the last big growth opportunity. Soon the continent will have more than one billion people, many of whom are still living in under developed rural areas. With the expected urbanisation likely to happen over the next 10 to 20 years, Africa is certainly the place to be if you are in the cement or infrastructure related industries. In the short to medium term however, AfriSam and PPC need to pursue the opportunity to create a strong national cement champion in South Africa, which is the home base and still accounts for more than half the income for both companies. On the back of a strong home base, degeared balance sheets and leaner structures, a merged entity will be in a much stronger position to deal with some of the current headwinds whilst aggressively pursuing growth in a more structured and slightly less risky way on the continent” says Tomes. Having said that though, the two companies should be careful not to get completely distracted by all these merger negotiations. “As AfriSam, we still have a business to run and customers to serve, which is why we continue to look for ways of improving our profitability and sustaining our business and leave the negotiations up to the deal makers.” Possible future growth A growth opportunity is the limestone deposit that AfriSam owns in the Western Cape. “For years now we have not considered exploiting the opportunity that this deposit offers us, mainly due to timing and the current oversupply of cement in South Africa. In addition we had to settle down the business after the Holcim deal: We had to bring new shareholders on board and restructure our balance sheet for the next wave of growth,” says Tomes. “AfriSam has enjoyed good support from its shareholders and we are encouraged by the continued support as well as interest shown by other potential partners to establish a long term presence in the Western Cape. We currently supply all our readymix operations with cement from our Ulco plant and have started targeting other cement users in the area as well. Establishing a cement plant in the Western Cape will allow us to reduce the cost of cement to our readymix concrete operations, whilst being able to pursue other users more

aggressively. Establishing a fully integrated plant could cost anything in excess of R3-billion, so one option might be to start with a cement mill and bagging plant and only build the kiln once there is sufficient demand to support that level of investment. We already have an approved EIA and discussions with potential partners regarding plant design, funding etc. are ongoing.” In conclusion Tomes says that AfriSam aims to consolidate its South African base, strengthen the balance sheet, get costs under control, remain competitive, continue to be cash generative and give shareholders confidence that the business is on the right trajectory. “And when growth comes, we will be in a good position to justify a major capital expenditure,” he says. 

The growth opportunity for the company is the limestone deposit the company owns in the Western Cape, which will allow for AfriSam to establish a cement factory.

7

CONSTRUCTION WORLD DECEMBER 2017

MARKETPLACE

FOR SCANIA ONE SIZE DOES NOT FIT ALL The South African Forum for Civil Engineering Contractors (SAFCEC) states in its report, State of the South African Civil Engineering Industry that although the world economy gained some momentum in second quarter of 2017, economic performance amongst emerging economies has remained mixed. This continues the trend that has seen the South African construction industry in a steady or declining state for the last few years.

more. It is the customer’s success that makes us successful.” Theuns Naude, Segment manager, Construction at Scania South Africa explains that the only way to ensure the customer’s success is to offer Solution Based Offerings. “We have to get to know the customer’s business: where the vehicle will operate will determine the right specification, and this will in turn optimise the vehicle for the specific application.” Taftman elaborates: “It is a matter of truly understanding the customer’s challenges after which you tailor the solution to his/her needs.” He explains that if the ‘one size fits all approach’ is used, the solution will most likely create waste. “The vehicle or body may be under-specced in relation to the job it is doing, or the incorrect service and support package may be in place. This may lead to unscheduled downtime, increasing repair & maintenance costs eventually influence the bottom line in a negative way. If the vehicle is over- specced, it may not break, but it will be too heavy and this will affect the payload while the customer will pay too much for repair & maintenance and insurance. “It is like the sweet spot on a gold club – you need to find this spot for every operation,” explains Taftman.

The South African Forum for Civil Engineering Contractors (SAFCEC) states in its report, State of the South African Civil Engineering Industry that although the world economy gained some momentum in second quarter of 2017, economic performance amongst emerging economies has remained mixed. This continues the trend that has seen the South African construction industry in a steady or declining state for the last few years. Not just numbers In stark contrast to this, Scania South Africa, that relaunched its range of construction vehicles to the local market in 2015, has seen unprecedented growth in sales numbers, more than doubling the number of vehicles sold year on year,

increasing its market share in this segment. One has to ask how this is possible in a depressed market. “We have been contributing something new to the market with our solutions based offerings,” says Alexander Taftman, Scania South Africa GM Product & Marketing about the reason for this upwards trend. Taftman says that although sales numbers are a measure of success, Scania measures success based on customer satisfaction. “In the end that is what counts. If we can provide something to the market that gives added value to the customers and makes them more profitable, efficient and cost-efficient, then we are successful. He adds that Scania, like all OEMs, is in the market to be successful. “But Scania aims to provide something

8

CONSTRUCTION WORLD DECEMBER 2017

Alexander Taftman, Scania South Africa GM Product & Marketing says the reason for Scania’s success in tough times is that they have been contributing something new to the market with their Solutions Based Offerings.

Consequences of tailoring Even though Scania vehicles are renowned for their optimal fuel consumption, this, says Taftman, is a consequence of tailoring. “When a vehicle is tailored to a specific type of transport the fuel consumption will be optimised. In the transport sector, there is no such thing as one size fits all. The most successful providers of solutions to the transport industry will be the ones that truly can tailor to the customer’s needs. Taftman’s strategic approach to product development further enables this tailoring. “Scania aims to continuously introduce new features and benefits. As soon as something is available in the global world of Scania, we make sure that it is introduced to the local market. We always spearhead the latest developments when it comes to products and services,” he says. The range of construction vehicles now includes 15 construction models. These vehicles include tippers, mixers, hook lifts, skip-loaders, heavy hauliers, and logistic vehicles for moving goods to and from building sites. “We have a range that is as wide as possible to meet as many needs as possible. A range of services can be connected to that vehicle. The support needs are also different depending on who the customer is, what commodity they are moving, where they are located, their operation cycle etc. You need to be truly flexible in how you provide these solutions,” says Naude. As Scania is basing its products on the modular system, it can easily change existing models. “As soon as new features that will add value to the local market are available, they will be introduced,” assures Taftman when asked about new offerings in 2018. All Scania vehicles are tailored to be bodied on and is a well proven ingredient of Scania’s success. “We have been active this year with the rolling out of a complete tipper solution with a number of selected body builders in order to shorten the lead time

for customers,” says Taftman. “We are the experts on the vehicles and the body builder are the experts on the bodies. By merging these to we tailor the perfect body with the right vehicle and optimise the body for a specific job. Our customers want to experience a one stop shop. They want to buy the complete vehicle from Scania,” he adds. Challenges in 2017 and beyond As infrastructure is the main driver of construction, the amount that government spends on such infrastructure directly influences the industry. Add to this the increased political uncertainty in the run-up to the elections in 2019, and you have a very uncertain situation that influences the rollout of new infrastructure. Naude says this uncertainty the construction sector was a major challenge for Scania in 2017 and in some cases, directly affected the number of vehicles sold. “The challenges for us as a supplier to the industry is that our challenges become the challenges that our customer has,” says Taftman. “The construction market is very volatile – growth up until the elections in 2018 will be fairly moderate. The amount of government spending is a prerequisite for either growth or decline,” he says. Despite an urgent need for infrastructure and an increasing urbanisation rate, the challenges for the construction industry will remain in 2018, but Naude says that Scania can only aim to provide better and better solutions to overcome these. “We can only continue to work close with our customers, listen to their needs and challenges and see what we can offer when it comes to our portfolio of services and products and adapt it to their needs,” he says. “The salesman sells the first vehicle, but the workshop and aftersales services sells the second and third,” adds Naude. Sustained growth Both Naude and Taftman are emphatic

Theuns Naude, Segment manager, Construction at Scania South Africa explains that the only way to ensure the customer’s success is to offer Solution Based Offerings.

that the building of sustainable business is crucial. “It is everything,” says Taftman. “Transport is a trust business, no matter what you are transporting. You have to have a relationship that is strong. Things do go wrong, and when they do, you need to know that you can rely on your partner. Everything is long term. The short term is not of interest to us – it is not in Scania’s DNA.” He adds that Scania’s core values (customer first, respect for the individual elimination of waste, determination, team spirit and integrity) which are applied as much externally as internally, make short term relationships impossible. “If you focus on these core values, you will get long term relationships that are mutually beneficial,” he says. customers and continuous business. He mentions that Hillary Construction, one of Scania’s customers have bought additional solutions (truck tractors and crane trucks) based on their experience of the company’s tailored solutions. Another, Conradie Construction, is satisfied with the increased savings on fuel since switching over to Scania vehicles, while a new customer, Ditshemega Projects is excited about the solution that Scania offers as they grow their business.  Naude adds that these long term relationships will lead to satisfied

9

CONSTRUCTION WORLD DECEMBER 2017

01

02

06

05

09

10

Construction WORLD

2 17 BEST PR O JECTS

10

03

04

07

08

11

12

Construction WORLD

2 17 BEST PR O JECTS

11

BEST PROJECTS GOES FROM STRENGTH TO STRENGTH Construction World’s Best Projects Awards is the only award that recognises excellence across the entire built environment – from contractors (civils, general builders and specialist contractors), to suppliers to professional services (architects and consulting engineers). It also recognises excellence in sustainable construction, and was one of the first awards in South Africa for green building.

Building Contractors Belo & Kies Construction received a Special Mention for ‘Lebowakgoma Shopping Centre’ and ‘Shell House – Residential Apartments’ while WBHO’s ‘Rosebank Towers’ was given a Highly Commended Award. The category was won by the impressive ‘Menlyn Reconfiguration Project’ by Concor Buildings. Specialist Contractors or Suppliers The judges commented that this category was a mixed bag of projects – but in the end the top projects were clear. Sika SA received a Special Mention award for ‘Hazelmere Dam Extension’ and Franki Africa was Highly Commended for ‘2 Pybus Road’. The category was won by AfriSam for the cement and concrete solutions it offered for the building of the PwC Tower in Midrand. Professional Services When Best Projects was started in 2002, the professional services category mainly attracted entries from consulting engineers. As Best Projects has grown, it now attracts entries from both consulting engineers and architects. For this reason this category will become two separate categories in 2018.

This year’s competition attracted 48 entries. It was, as in the past, adjudicated by three judges, each of whom has been in the industry for decades and who represent various professional bodies of which they were presidents: ECSA, CESA, CIOB and MBA: Trueman Goba, Rob Newberry and Nico Maas. The judging of some categories led to robust debate, but in the end a clear winner in each of the categories was decided on. The awards ceremony was held on 8 November in Johannesburg and was attended by some 220 guests. The MC was Professor Ian Jandrell – Dean Faculty of Engineering and the Built Environment, University of the Witwatersrand and who is also a director of Crown Publications, the publisher of Construction World. Civil Engineering Contractors In this category there was a Special Mention, ‘Port of Saldanha – Upgrading of General Maintenance Quay’ (Basil Read) and a Highly Commended award for the ‘Loeriesfontein Wind Farm and Khobab Wind Farm’ (Concor Infrastructure). The category was won by WBHO Construction for the ‘BRT Cable Stay Bridge over M1 Highway’.

The MC was Professor Ian Jandrell.

This year the judges have chosen winners for both consulting engineers and architects. Paragon Architects and Paragon Interface won a Highly Commended award for ‘Sasol Place’ while the architectural winner in this cate- gory was ‘140 West Street’ by Paragon Architects. SMEC South Africa was the winner for consulting engineers for their project ‘Mount Edgecombe Interchange Upgrade’, while the ‘Construction of Module 2 at the Welgedacht Water Care Works’ by Royal HaskoningDHV won a Highly Commended award and a Special Mention was given to Hatch Africa for ‘The construction of the Tugela River Pedestrian Bridge’. The AfriSam Award for Sustainable Construction This award, one of the first in South Africa to recognise sustainable building, was won by ‘Alice Lane Phase 3’ by Paragon Architects while the Paragon Group received a Highly Commended Award for ‘GE Africa Innovation Centre’.

Captions for pages 10 and 11: 01. Alice Lane Phase 3 02. Provincial Main Road 577 03. 2Ten Hotel 04. Port of Saldanha 05. PwC Tower 06. BRT Bridge over M1 07. Rosebank Towers 08. Yacht Club 09. Metolong Dam 10. Menlyn Shopping Centre

The judges for the Best Projects 2016 Awards were (from left): Nico Maas, Trueman Goba and Rob Newberry.

11. 2 Pybus Road 12. Springs Mall

Construction WORLD

2 17 BEST PR O JECTS

12

Construction WORLD

2 17 BEST PR O JECTS

13

Category A1: Civil Engineering Contractors

Winner BRT Cable Stay Bridge over M1 Highway – WBHO Construction From left: Stoffel du Plessis, Nicol van Rensburg and Ligthart Seris.

Highly Commended Loeriesfontein Wind Farm and Khobab Wind Farm – Concor Infrastructure From left: Steven Verwey, Joe Nell and Eric Wisse.

Special Mention Port of Saldanha - Upgrading of

General Maintenance Quay – Basil Read From left: Taryne Lowe, Sheldon Temlett, Tony Phofu and Francois Spies.

Category A2: Building Contractors

Winner Menlyn Reconfiguration Project – Concor Buildings From left: Olive Ndebele, Rui Santos, Martin Muller, Colin Scott, Nasreen Motara, and Avish Mistry.

Special Mention Lebowakgoma Shopping Centre and Shell House Residential Apartments – Belo & Kies Construction Nicholas Belo, Jaap Steenkamp, Benson Baloyi and Andre Kies.

Highly Commended Rosebank Towers – WBHO Construction From left:Nicus Rautenbach, Gerrit van Renssen, Tinus van Zyl, and Chris Knight.

Construction WORLD

2 17 BEST PR O JECTS

14

Category B: Specialist Contractors or Suppliers

Winner PwC Tower – AfriSam Rob Sansom, Russell Wearne, Amit Dawneerangen, Mervin Govender, Maxine Nel and Mike McDonald.

Highly Commended 2 Pybus Road, Sandton – Franki Africa Dulce Simoes, Paulo Alves, Brett Markides, Victor Ferreira, and Jurie Engelbrecht.

Special Mention Hazelmere Dam Extension – Sika South Africa Bertus Vorster, Andre Barnard, Shaun Saxby and Tina Coetzee.

Category C: Professional Services

Winner – Architects 140 West Street – Paragon Architects Kay Hausler and David Cloete.

Highly Commended – Architects Sasol Place – Paragon Architects and Paragon Interface Riki Papaspyrou and Claire D’Adorante.

Construction WORLD

2 17 BEST PR O JECTS

15

Category C: Professional Services

Highly Commended – Consulting Engineers Construction of Module 2 at the Welgedacht Water Care Works – Royal HaskoningDHV Alfred Bwanya.

Winner – Consulting Engineers Mount Edgecombe Interchange Upgrade –SMEC South Africa Gert Wentzel, Shaun Chamberlain and Johnnie Strydom.

Special Mention – Consulting Engineers The Construction of the Tugela River Pedestrian Bridge – Hatch Africa Sarisha Harrychund and Johan Palm.

Category D: The AfriSam Innovation Award for Sustainable Construction

Winner Alice Lane Phase 3 – Paragon Architects Alexandra Slaviero and Claire D’Adorante.

Highly Commended GE Africa Innovation Centre – Paragon Group Claire D’Adorante and Anthony Karam.

Construction WORLD

2 17 BEST PR O JECTS

16

Construction WORLD

2 17 BEST PR O JECTS

17

Construction WORLD

2 17 BEST PR O JECTS

18

Construction WORLD

2 17 BEST PR O JECTS

19

LUCKY DRAWWINNERS

Ngage sponsored a Nespresso Essenza coffee machine. The winner was Kobus de Beer from SAISC. With him is Erna Oosthuizen (left) and Renay Tandy, Ngage’s Public Relations Director.

Makita sponsored a 16V Cordless Driver Drill including a 3.0 Ah battery and charger. Shirley McInnes (left) from Porcupine Productions handed over the prize on behalf of Makita. Here she with the lucky winner Paul Gerard from Flanagen & Gerard and Erna Oosthuizen, Construction World’s Advertising Manager.

Maccaferri Africa sponsored a sports duffle bag, which was won by Kobus Prinsloo fromWBHO. Here he is with Joseph Meadows, Maccaferri Africa’s Mining Business Development Manager and Erna Oosthuizen.

Concor sponsored a Rupert & Rothschild magnum. Mohau Mpomela, the MBA North’s Executive Director won the prize. Rui Santos, Concor Buildings’ MD handed over the prize.

Construction WORLD

2 17 BEST PR O JECTS

20

Construction WORLD

2 17 BEST PR O JECTS

21

Category A1: Civil Engineering Contractors

BRT CABLE STAY BRIDGE OVER M1 HIGHWAY There'll be a whole new generation of bus rapid transit (BRT) commuters when Rea Vaya's Sandton, Alexandra, central Joburg route starts operating in 2018 – and one of the pleasures they can look forward to is crossing the M1 highway on a spectacular new BRT-only bridge.

ensure that the cable anchors were carefully aligned with the anchors on the road-level bridge beam. Lobster-back forms were also designed for the casting of piers that support the bridge as it touches down on either side. With limited headroom across the 24 m and 27 m wide portals over the M1 north and south carriageways, Form-Scaff’s heavy capacity Super-Beams provided the only feasible answer with a low enough profile for unimpeded traffic below, while being strong enough to support the thousands of tons of construction materials above. Another advantage is that the five separate beams, each comprising four connected Super-Beams, could be preassembled offsite to save time and space on the crowded construction site. The project adopted a zero-harm policy during its execution, and a total of 771 287 hours were recorded with no lost-time injuries. Given the com- plexity of the project and the limited construction knowledge of the local community working on the project, this is a remarkable achievement. Working together, the Johannesburg Development Agency (client), Hatch (consultant), who were part of the Royal Haskoning DHV-Hatch-Malani Padayachee JV, and WBHO/Cebekhulu JV (contractor) completed this project successfully in April 2017. The BRT Cable-Stayed Bridge and associated road infrastructure for the estimated 10 000 people who walk or cycle daily between Alex and Sandton will

Rea Vaya's new route will form the backbone of Johannesburg's second new Corridor of Freedom, connecting Alexandra not only to central Joburg but also to its historically segregated, disproportionately wealthy neighbour, Sandton. The multi-million rand BRT bridge recently built between Alex and Sandton, forms part of the Rea Vaya Bus Rapid Transport (BRT) network, one of the largest projects ever undertaken by the City of Johannesburg. The bridge was built in partnership with the Johannesburg Development Agency (JDA). The 271 m long structure extends from Katherine Street in Sandton, across the M1 highway and on to Lees Street in Wynberg and incorporates eight spans. The cable- stayed section comprises a main span of 83 m crossing the M1 and a 39 m long back span provided with a central tension pier. Most remaining spans vary in length from 25-30 m. Two 52 m high slightly inclined concrete pylons, carry the cable-stayed section. Mechanically stabilised earth walls form the transition from the abutments to the roads on either side of the bridge. Two ramp bridges provide pedestrian access from either side of the highway to the 3 m wide bolt-on pedestrian walkway section

of the bridge, resulting in a 13,35 m total bridge width over the freeway. A thorough geotechnical investigation took place prior and during construction, although the decomposed granites, commonly found in this area, were mostly dense within a few metres from the sur- face. In certain sections it was found to be less competent and medium dense down to depths of 3-5 m. The heavy imposed foundation loads and bridge performance requirements necessitated the use of pile foundations. More than 1 300 tons of Form-Scaff form-and-falsework was used during the construction phase, however, the spanning of the highway without impeding workday rush hour traffic was the greatest challenge of all requiring the assistance of the country’s top structural support experts to design and the building of temporary structures to allow construction to continue unimpeded. The contractor also needed ensure that no road traffic accidents would compromise the integrity of the temporary works and subsequently designed and built concrete retaining structures to protect the supershores. Special formwork was designed to pour the towering 52 m high main pylon and

thus be catered for, but more importantly, will offer Alex residents the afford- able, convenient option of riding Rea Vaya to Sandton and back.

Winner

PROJECT INFORMATION

• Company entering: WBHO Construction • Client: Johannesburg Development Agency • Contract value: R225 701 278 (excluding VAT) • Start date: 2 March 2015 • End date: 26 April 2017 • Main contractor: WBHO Construction • Consulting engineer: Royal HaskoningDHV/Hatch/MPA JV

Construction WORLD

2 17 BEST PR O JECTS

22

Construction WORLD

2 17 BEST PR O JECTS

23

Category A1: Civil Engineering Contractors

LOERIESFONTEINWIND FARM AND KHOBAB WIND FARM Loeriesfontein Wind Farm and Khobab Wind Farm, in the Hantam Municipality of the Northern Cape, are two pioneering renewable energy projects in which Concor Infrastructure played an important and innovative role.

(Also entered Category D)

the blinding beneath the bases. Concor Infrastructure used 50% waste material for both the 60 MPa plinth concrete as well as the 30 MPa conical base concrete. Strengths were achieved at 28 days. Together, these initiatives reduced the wind farm’s construction carbon footprint from approximately 300 kg of CO 2 per cubic metre to 90,7 kg of CO 2 per cubic metre, reducing the project’s estimated overall carbon footprint by 31%. Performance of concrete is vital for this demanding application. Each of the 122 wind turbine bases is 19 metres in diameter, and was constructed in the same manner to accommodate a 99 metre high turbine tower on which is placed a nacelle weighing in excess of 80 tonnes. To reduce the project’s carbon footprint, carefully selected and treated waste material was used as a replacement for cement in low cement geo-polymer readymix concrete. The bases at the Loeriesfontein site contained a design mix comprising 50% ground granulated corex slag (GGCS). For the blinding beneath the bases, as much as 95% waste replacement was used in the concrete. 50% waste material was used for both the 60 MPA plinth concrete and the 30 MPa conical base concrete with strengths being achieved at 28 days. The quality of the project’s core product – concrete – was proven and maintained throughout. In addition to the research and development invested in innovative and environmentally friendly concrete mixes, Concor Infrastructure’s testing is up to three to four times more thorough than conventional concrete inspections. They also exceed those undertaken on concrete performance on wind construction projects, and involve studying the micro- crystal formations of the concrete using Environmental Scanning Electronic Microscopes (ESEM) .

The wind farms were constructed by Concor Infrastructure in a consortium with CONCO. Concor Infrastructure was responsible for the construction of all 122 wind turbine generator foundations, as well as the adjoining hard stands and all internal roads on both sites. The company brought its extensive these construction projects in a remote endemically sensitive and arid location. In planning and implementing its work, Concor Infrastructure was able to ensure a high quality product and service – with innovative cement-saving concrete mixes for the wind turbine bases – as well as water saving strategies and environmental care, all delivered well ahead of schedule. The environmental impact of the project was carefully considered and addressed through a number of integrated strategies. These included the conservation and recycling of scarce water resources, the bioremediation of hydrocarbons on site, relocation of protected plant species and an overall reduction in the project’s carbon footprint. Concor Infrastructure was also able to promote local employment and skills development in the area by sourcing experience and expertise in civil engineering, concrete design and sustainable project management to

much of its labour from the town of Loeriesfontein. In addition to the training provided, Concor Infrastructure mentored local small businesses to become effective suppliers and subcontractors. The company’s ongoing commitment to Zero Harm through strong health and safety practices allowed the projects to reach the 1,3 million LTIF (Lost Time Incident Free) milestone in January 2017. As at August 2017, the project was standing on 2 million LTIF for the Consortium. The wind farms are both part of the South African Government’s Round 3 Renewable Energy Independent Power Producer Procurement Programme (REIPPP). South Africa Mainstream Renewable Power has managed the construction and will manage operations of these wind farms, following commercial operations. Substantial innovation in concrete mixes was applied at the Loeriesfontein and Khobab sites, contributing to various environmental considerations while enhancing performance. The plinths at Loeriesfontein were constructed using high strength 60 MPa concrete with a design mix comprising 75% ground granulated corex slag (GGCS) in place of cement. As much as 95% waste replacement was used in the 12 200 cubic metres of 15 MPa concrete used for

PROJECT INFORMATION

• Company entering: Concor Infrastructure • Client: South Africa Mainstream Renewable Power • Start date: 7 April 2015 • End date: 7 December 2017 • Project team: Concor Infrastructure • Principal agent: Mainstream Renewable Power • Project manager: Mainstream Renewable Power

Construction WORLD

2 17 BEST PR O JECTS

24

Highly Commended

Construction WORLD

2 17 BEST PR O JECTS

25

Category A1: Civil Engineering Contractors

PORT OF SALDANHA – UPGRADING OF GENERAL MAINTENANCE QUAY

(Also entered Category B &D)

The project involved the Upgrading of the General

the suitable time to remove insulation and formwork from these large sections that were cast. TNPA remains committed to meaningful social responsibility and in this effort set out requirements for compliance with their Supplier Development (SD) Plan. This required the contractor to commit upfront to spending at least 30% of the contract value on various initiatives contained within the SD Plan framework, including, but not limited to, job creation; skills development (skilled and unskilled individuals); localisation through procurement; promoting small business; rural integration and regional development. The overall design for the upgrading of the GMQ called for minimal demolition of the existing structures already in place. The existing block wall comprising massive precast concrete units, some in excess of 60 tons, saw minimal modification, with the extension complimenting the rigorous design employed in constructing the original block wall some 40 years prior. Saldanha Bay has a high concentration of mussel farms which produce a large portion of clams supplied to the Western Cape for public consumption. Due to the fact that these organisms are highly sensitive to changes in their environ- ment, particularly oxygen concentrations in water, stringent controls were put in place through the Environmental Monitoring Programme (EMPr). In an effort to reduce the environmental impact of the project on the immediate surroundings, much of the materials

recovered and/or excavated on site were either reclaimed or re-used. Scrap metal from abandoned vessel remains were recovered during dredging operations and successfully reclaimed into the scrap metal market. Soil stockpile heights were closely monitored and stockpiles were intentionally shaped to bear less wind resistance in an effort to mitigate the dust pollution. In the interests of both Health and the Environment, extensive testing had to be carried out on in-situ material prior to dredging operations commencing along the quay wall. The deeper sediments had to be tested for the content of heavy metals and hydrocarbons in order to determine whether any treatment or safe disposal, at a registered hazardous disposal site, was necessary. All levels were comfortably within threshold limits and posed no danger. Through constant interaction between the contractor, principal agent and the project team numerous cost-saving initiatives were explored to prevent the project from exceeding budget. In an effort to reduce the risk of delays in project delivery and assist the employer in reducing potential loss of income, the works were sequenced in such a way that at least half the length of the quay wall could be delivered and handed over to the employer ahead of schedule, fit for purpose and safe for operational use. In lieu of the employer’s requirements, further stringent protocols were enforced by the contractor for the safe keeping of its people. The effectiveness of these endeavours shone through in repeatedly favourable audit results. The project also achieved over 400 000 work hours with zero lost time injuries. • Company entering: Basil Read • Client: Transnet National Ports Authority (TNPA) • Contract value: R141-million • Start date: 19 March 2015 • End date: 8 November 2016 • Main contractor: Basil Read • Principal agent: PRDW Africa • Project manager: TNPA • Quantity surveyor: PRDW Africa • Consulting engineer: PRDW Africa • Readymix supplier: AfriSam PROJECT INFORMATION

The works included the extension of existing Blockwork Quay and replacement of the Sheetpile Quay Wall to deliver a larger, continuous Quay Wall to TNPA for future operation as an Offshore Supply Base (OSSB). The OSSB shall look to service mainly the Oil and Gas industry, particularly along the African West Coast. The contractor procured a drone- mounted camera with which aerial photography and videography could be carried out on an ad hoc basis. Not only could this footage be used to gauge progress but, it also assisted the project team with strategic planning and project controls on the job. Some practical challenges arose where deep concrete slabs and beams were cast using high durability concrete mix designs (possessing very high cementitious content). Increased temperature ranges during the initial curing phase meant that temperature differentials between the core and surface of each concrete section with the ambient temperature had to be measured in order to avoid the risk of thermal cracking. The contractor employed the use of precision thermocouple data loggers, infrared thermometers and real- time weather gauges in order to determine Maintenance Quay at the Port of Saldanha for Transnet National Port Authority (TNPA).

Construction WORLD

2 17 BEST PR O JECTS

26