Construction World June 2019

JUNE 2019

COVERING THE WORLD OF CONSTRUCTION

WORLD

CR O WN

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

CONCRETE CAPTURES form and function in NATURAL ART SPACE

ENTER NOW

HELPING PCMs KEEP pace and reduce energy this winter

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22

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CONTENTS

04 Global and African construction trends The many and complex factors that influence the construction industry.

24 Creating a landmark How the new 55-storey Leonardo in Sandton was built.

28 Steel shows it mettle Steel offers a number of advantages for the construction of bridges. 38 Bridging the divide A new bride will allow faster movement of people and goods from SA to Botswana. 44 Helping PCMs keep pace, reduce energy this winter Using appropriate admixtures can assist with maintaining the rate of production. 48 Stadium design-an-build cut by two years AECOM has slashed two years off the construction time for a stadium in Cameroon.

08 Creating a force for future of resources and energy Worley – the result of the merger between WorleyParsons and Jacobs – has a lot to offer. 10 Mind the gap between finance and engineering How to maximise productivity on projects and gain control over costs and performance.

12 Scania introduces next generation The OEM is introducing a completely new truck range locally.

16 Exciting redevelopment begins The iconic 30-storey Towers Main building in Joburg has a new owner and a new lease on life. 22 Raising profile of Cape Town’s foreshore The R1,5-billion The Yacht Club is a prestigious mixed-use development in Cape Town.

Construction JUNE2019 PUBLICATIONS CR O WN COVERINGTHEWORLDOFCONSTRUCTION

WORLD

REGULARS

04 14 16 22 54 56

Marketplace

CONCRETECAPTURES formand function in NATURALARTSPACE

Environment & Sustainability

Property

ENTERNOW

HELPINGPCMsKEEP pace and reduce energy thiswinter

ON THE COVER

Projects & Contracts

Precast concrete has helped lend an air of timelessness and minimalism to Norval Foundation, a modern pavilion for art set against the dramatic Constantiaberg Mountain and vineyard landscape in the Steenberg area of Cape Town. The building is an expression of concrete, glass, steel and timber with concrete being the primary element in both the finish and structure. Read the article on pages 20 and 21

Equipment

Products & Services

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COMMENT

In May I attended the launch of Manitou’s new equipment for emerging economies in Thailand. The launch was held in this South East Asian country as it is not only a poster child for growth in the region, but also globally. Even though, for Manitou, South Africa is part of an emerging growth node – Africa – the projected number of sales for this region pales in comparison to those for some markets. What makes some emerging economies perform better than other similar economies? And how is South Africa doing in these stakes? The best 18 Seven of these emerging economies

According to a McKinsey Global report Outperformers: High-growth emerging economies and the companies that propel them released last year, emerging economies have accounted for almost two-thirds of the world’s GDP growth and more than half of new consumption over the past 15 years. The report is the result of the long-term track record of 71 developing economies so that the outperformers among these could be identified. Two common factors were found that aid outstanding performance: a pro-growth policy agenda of productivity and the crucial role that large companies have played in driving growth. One of the reasons why it is so important for economies to grow, is that emerging countries power global growth. They come in various shapes and sizes and their economies vary too. Some of these economies can sustain growth for a long period – the so-called outperformers. Unfortunately South Africa is not one of them – not by a long shot. Our GDP growth rate is barely 2% – and economists predict that this is not going to increase dramatically in the coming years. Of the 71 emerging economies examined, only 18 were outperformers.

benefitted from the competitive domestic market. In fact, these countries have double the number of larger companies than other emerging economies. However, even though companies grow and become large companies, it is not easy to maintain this. Those companies that have stayed at the top share the characteristics that they are able to make investment decision fast and pay higher returns to investors as opposed to companies in developed countries. The report ends with an interesting possibility. If all 71 emerging economies can achieve the growth rate of the 18 outperformers, the global economy can be boosted by 10% … effectively that means another economy the size of China. An entire globe can benefit.

consistently performed well over the last five decades. They are China, Hong Kong, Indonesia, Malaysia, Singapore, South Korea and Thailand. These countries averaged an annual GDP growth of 5,5%. The remaining 11 are more recent outperformers. These countries have managed to maintain an annual GDP growth rate of 5% for the last 20 years. There are Azerbaijan, Belarus, Cambodia, Ethiopia, India, Kazakhstan, Laos, Myanmar, Turmenistan, Vietnam and Uzbekistan. According to the report, the growth in the countries listed above have managed to lift more than a billion people out of extreme poverty – something that was achieved by two factors. Firstly, these outperforming countries all have a pro-growth agenda of productivity, income and demand. This resulted in more being consumed and people being able to save more. As companies and individuals earned more, governments could collect bigger taxes. Because such countries produced more, they were able to export goods and so plug into the global economy. The second reason for the success of these 18 outperformers is that firms

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MARKETPLACE

GLOBAL AND AFRICAN CONSTRUCTION TRENDS

As construction projects become bigger and harder to fund, given rate pressures and market challenges, many insurers are exiting the engineering market. Regulatory scrutiny and socio-political uncertainties threaten investments and project delays impinge on contractors’ expenditures. Delay in start-up (DSU) trends

A dd to the mix the strain of new technologies and growing cyber threats, and it’s tempting to sound ‘retreat’. But there are rewards for staying the course, explains Allianz Global Corporate & Specialty (AGCS) Africa Head of Property and Engineering, Seelan Naidoo. Global and African trends Many insurers are exiting the construction sector or somewhat scaling back their offerings. The past year saw many losses from fires, mechanical failures and natural catastrophes, including the Hidroituango dam collapse in Colombia which is estimated to be more than USD1,2-billion may prove to be the largest construction loss in history. The sector’s problems are years in the making: growing portfolio volatility; years of declining rates; and widening coverages over many years. Construction is a long tail business. Today’s premium is from projects written several years ago. Insurers realise current market practices in certain segments are unsustainable – this year we should finally see insurers 'cleaning-up' portfolios and bringing focused risk management and risk-adequate pricing to underperforming segments. The situation is more severe in Africa with a number of construction companies facing challenging market conditions and extreme financial pressure due to deferment of projects. Some companies have applied for business rescue while others have been liquated. The state of global and African construction Construction projects are far more global than in the past as sizeable infrastructure projects are moving more to international companies. Equipment is being sourced internationally and construction site risk management is improving – a positive development from both a cost perspective and from the standpoint of a continuous process improvement, knowledge-sharing strategy among contractors. But there are downsides: contractors operating in new territories must comply with new regulatory environments, building codes, etc. which can lead to delays, pressuring schedules and creating overruns. Brexit, Eurozone issues and global tensions between major trading countries cause uncertainty, which can result in project delays and even cancellations. Projects will doubtless continue, since developing countries need continuing infrastructure investment and developed countries need to replace aging infrastructure. Uncertainty is the enemy of investment, however, so we’d like to see a more stable socio-political environment. We have a number of countries going through elections in Africa in 2019. This could lead to increased instability, which tends to deter the financial closure on major projects. However, we do expect to see acceleration in new and existing projects such as renewable energy, after elections in South Africa.

Business interruption (BI), contingent BI, supply chain risks – each has had significant insurance coverage in property markets for years. Construction DSU insurance take-up has increased as customers see the need to protect completed project revenues – often driven by lenders – while, at the same time, coverages and the insured parties have broadened. A recent trend in Africa is the delays incurred in projects reaching completion. BI losses can be substantial, but construction risks are volatile because there is greater uncertainty regarding rebuild-times and the project completion. DSU exposures are much more difficult to assess. In case of large EAR projects on the African continent, critical plant and equipment often entail long lead times from the original equipment supplier – in the event of losses during the construction period, delays can run into many months or in some cases up to two years. Thankfully, DSU losses are rare, but they can be significant. In 2018, AGCS had enough DSU losses to erode several years of DSU premium. Engineering portfolios for many carriers are much smaller than property books, so these covers bring a level of portfolio volatility to support losses and, since projects are non-recurring, there’s no chance to recoup losses at renewal. The impact of technology on projects The construction sector is slow to adopt to innovative technologies, but we’ve seen them start to gain traction. For example, building information modeling (BIM) – 3D model-based technology that allows for more efficient planning, design, construction and management – is replacing traditional 2D design methods and may change how projects are designed and delivered. However adequacy of loss mitigation measures needs to be readdressed to align with the innovative technologies. On the

other hand, increased reliance on technology increases cyber threats – an exposure much less focused on in this sector than in others. We help customers become aware of new technologies, but simultaneously educate them about new cyber threats and the importance of adding cyber risk management to their risk registers. Businesses need to widen business continuity planning

to aptly deal with these newer exposures. Cyber awareness is key in today’s world and we offer a variety of coverages in the event of a cyber incident. 

By Allianz Global Corporate & Specialty (AGCS) Africa Head of Property and Engineering, Seelan Naidoo.

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R801-MILLION brick factory at Driefontein

Corobrik, South Africa’s leading brick maker, is making steady progress in the construction of its R801-million new Driefontein factory and expects to see the first bricks exit kiln one (of two) in March next year.

Pictured at the sod turning of the new Corobrik factory at Driefontein are from left : Lerato Mokgotsi and Rehab Mathobela – Corobrik Directors, and Peter du Trevou, Corobrik Chairman, with Bryan Soldaat, Director: Resources Based Industries for the Department of Trade and Industry.

S peaking at a recent event held at the new factory building at Driefontein (April 30, 2019) and attended by Minister of Trade and Industry, Rob Davies, Chief Executive of Corobrik Dirk Meyer said that Corobrik would commission Africa’s largest and most environmentally friendly brick factory by September 2020. “We are committed to South Africa and believe that it is just a matter of time before the construction sector improves. The construction industry and the associated brick industry has traditionally been and still is, cyclical. Corobrik has always invested strategically at the bottom of the cycle in order to be better prepared to reap the rewards of an upturn,” he said. Meyer said that the driving force behind investment in this exciting facility was to increase production whilst reducing costs. The implementation of the best technology available worldwide would ensure that Corobrik remained a world-class superior quality producer. The new Driefontein facility, which is expected to produce 100 million bricks per year, will meet larger volume orders for major construction and infrastructure projects while the company’s existing 13 clay brick factories and 14 kilns which produce a mix of plaster and face bricks for the residential and commercial markets, will meet smaller orders, he added. Corobrik currently sells about four million bricks per working day. Construction of the new facility began in July last year. The building is expected to be completed by the end of 2019. Approximately 200 employees are on site each day during construction with a total of 323 000-man-hours recorded so far, he noted. Minister Rob Davies congratulated Corobrik on progress so far. He said the company was well positioned to take full advantage of increased demand for building materials as the many new manufacturing facilities that had been announced by investors in response to government’s drive to attract both local and foreign investment began to take shape. He also welcomed the fact that the construction of the new Driefontein facility would have a positive impact on the neighbouring community. Thirty people from the local community and family members of the current staff have completed a 12-week bricklaying course. The main contractor will employ these newly trained

bricklayers for the duration of construction. More than a million bricks will be used to build the new facility. Designers have used mainly face bricks manufactured at the current Driefontein factory. This includes 720 000 Blue Barley, 50 000 Country Classic Travertine and 163 000 Golden Wheat face bricks together with smaller numbers of Maize Travertine, Onyx Satin, Roan Satin, Agate and plaster bricks. Corobrik does not intend to shut down the older Driefontein factory, Meyer said they were exploring the feasibility of running both production facilities by introducing new product offerings in the market. The new plant will create around 60 jobs in the factory and will require at least 800 bricklayers to bring in the bricks that are produced and sold It would also be necessary to upgrade existing skills needed to operate the state-of-the-art technology factory. “When recruiting staff for the new factory, preference will be given to existing employees who will be trained on the new equipment as they have the advantage that they understand the brick making process,” he said. This will create vacancies and job opportunities elsewhere in the business. Both local and overseas manufacture of the new equipment to be installed at Driefontein has already begun. Some of the items have already been installed. Some 178 shipping containers have been delivered and offloaded since the middle of January 2019. By the end of the project, approximately 600 containers of machinery and equipment will have been delivered to the site. Meyer said the new Driefontein factory would use considerably less energy than the adjacent older facility. It will fire bricks at an average natural gas consumption at less than 40% of the current facility consumption. All surface water will be channelled into one of the existing quarry dams and then reused as process water. A new effluent treatment plant will also be constructed. Photovoltaic panels will be installed on the north facing roof to convert solar energy into AC power and act as a grid tie-in system to supplement Eskom supply during the day. It is estimated that the electrical energy produced will be approximately 10% of the factory’s daytime electrical power requirement. 

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MARKETPLACE

HOW BUSINESS RESCUE AFFECTS CONSTRUCTION CONTRACTS

The number of organisations in business rescue is an indication of the economic decline in South Africa’s construction sector, with big names like Esor, Liviero, Basil Read, Group Five and NMC Construction in business rescue or liquidation. By Tsele Moloi, MDA Attorneys Associate

S tatistics South Africa has named 2018 as the construction sector’s worst year, which means business rescue will continue to be an unfortunate reality. Production slumped by 1,2% and the sector experienced its second economic decline in two years as a result of limited infrastructure spending by the government. The dearth of major infrastructure projects makes it difficult for major construction companies to continue operating. Business rescue is intended to rehabilitate a company that is financially distressed. But it is important to understand how business rescue proceedings and appointed business rescue practitioners can impact those who are contracted to the company. Generally, business rescue (among other things) provides temporary supervision of the management of a company’s affairs, business and property; an interim freeze on any legal proceedings against the company; and a business rescue plan to restructure it with a view to saving the business. The appointed business rescue practitioner develops and implements a business rescue plan which must be published within 25 days after his/her appointment and this plan is approved by affected parties. Impact on contractors – reduced or delayed payments Business rescue can become a burden for contractors and subcontractors. While the company’s management remains in place, the business rescue practitioner has full control over the company. For contractors and subcontractors, this means that the relationships they have are suddenly suspended. The process of making payments is handled by the business rescue practitioner, despite any previous arrangements that may

have been in place. While a company in business rescue must repay its debts, the process provides breathing space to delay pre-existing debts. In construction, time is money and contractors operate on the basis of decisions being made without delay. Creditors’ pre-existing debts will be paid according to the approved plan once the business has been rescued. In practice, this means that payment may likely be significantly later than expected, as per the contract terms, and it could also mean a reduced payment. The company continues to operate during business rescue and contractors or subcontractors must comply with their obligations under the specific existing contract. Yet, understandably, many will be reluctant to continue works on the same terms and conditions as those agreed prior to the commencement of business rescue. The business rescue practitioner has wide-ranging powers, including the ability to unilaterally amend, suspend or cancel an existing contract. Should this happen, a contractor or subcontractor can make a claim for damages to the company under business rescue. But this can have a dramatic impact, as contractors operate in a credit environment, meaning they are only paid when works are completed. While it is widely understood that business rescue is a positive step in guiding companies towards rehabilitation, the overall benefits may not extend to everyone. Contractors and subcontractors should arm themselves with information, as it could have a significant impact on their own businesses. The considerations raised here are just a small part of the potential impact of business rescue on the company and its contracting parties – subcontractors and contractors alike. Business rescue is a complex legal area and is best navigated with the assistance of an attorney as soon as the process commences. 

SAQA accreditation RENEWED

The Institute for Timber Construction South Africa (ITC-SA), South Africa’s watchdog for the engineered timber construction sector, recently received renewed recognition from the South African Qualifications Authority (SAQA) as a Professional Body.

A s a prominent custodian of the timber construction industry in South Africa, the ITC-SA is empowered, through its ongoing SAQA accreditation,

as set out in the National Qualifications Framework Act (NQF Act 67 of 2008) as amended. As such, the ITC-SA is bound to regulate and monitor its members’ individual profiles and performance with regards to training undertaken and completed for professional recognition. This training is set according the ITC-SA’s

to make meaningful contributions to a healthier construction industry, support the consumer in their liaisons with the professional trade and hold its membership to a high standard. The ITC-SA is proud to have again received recognition from SAQA as a professional body. This recognition also extends to several professional designations under its purview, including, Certified Roof Erector, Certified Roof Inspector, Certified Roof Fabricator, Accredited Timber Engineer, Certified Roof Structure System Software Developer, Certified Timber Frame Builder, and Certified Timber Roof Truss Designer. The ITC-SA has maintained its accreditation with the SAQA since 2013 and in this capacity must comply with all the requirements

criteria and approved by SAQA, and is crucial for the promotion and monitoring of continuous professional development (CPD) for members to meet the relevant professional designation requirements. More than this, the ITC-SA is there to ensure consumer protection in the use of timber engineered products in contracts entered into with its membership and to regulate the professional conduct of its members. Where prima facie evidence confirms professional misconduct, in order to protect the consumer and the reputation of the industry, the ITC-SA shall apply proper sanctions. 

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Creating a force for future of RESOURCES AND ENERGY

Following the announcement in October 2018 of WorleyParsons’ binding offer for Jacobs’ Energy, Chemicals and Resources (ECR) line of business, the combined new entity has come together under a new brand – Worley – as of 29 April 2019.

global delivery centre capabilities, supported by world-class people and systems. Outgoing CEO of WorleyParsons RSA Denver Dreyer, who effective immediately is taking up the role of Senior Vice President Mining, Minerals & Metals (MM&M) for Europe, Middle East and Africa for Worley, comments that the merger will increase the organisation’s global footprint in the minerals, metals and mining sector. South Africa will continue to be a Global Centre of Excellence in mining and minerals processing, providing solutions for each step of the mining value chain. The Worley MM&M division for Africa will be headed up by Robert Hull, who had been responsible for the management of all projects delivered locally and globally from WorleyParsons RSA. Hull’s counterpart, Ed Hanbidge, will head up the EC&S (Energy, Chemicals & Services) division for Southern and Eastern Africa. Hanbidge was previously MD of Jacobs Matasis, the South African arm of Jacobs ECR. In South Africa since 2010, Jacobs Matasis has been a significant contributor of expertise to the region and a major service provider of engineering, technical, professional and construction services to the refining, oil and gas, and chemicals industries. The company is known for its long-standing customer relationships, as well as project portfolio and alliance experience. “The presence of these two complementary divisions in South Africa – one focusing on minerals and mining, the other one on energy, oil and gas – will create a stronger, united entity in many respects, through combined services, delivery programmes, resources and expertise,” says Hanbidge. “As a unified, integrated organisation, we will be able to serve our clients better, not just in one particular area, but in a number of areas. Our synergies of executing work will be stronger. Our clients won’t have to deal with multiple companies, but rather with one company that can now provide much more in terms of service, which in turn will also deliver cost benefits to our customers. Hull concurs, “As one of the biggest one-stop-shops in Africa for professional services in energy, chemicals and resources, our customers can expect greater efficiencies, more services, and a greater diversity of skills.” He assures that customers will be working with the same people under an integrated, unified banner. “We won’t be changing our DNA of working – our relationship- based way of working will continue,” affirms Hanbidge. “Business will continue as usual, but services will be delivered in a more cost- effective way, while bringing our customers the best of both worlds.” Dreyer further comments that while this is a global merger, locally the new entity will be focusing on issues that are relevant to South Africa. “This is a merger of two equals in terms of capabilities and competencies, strong track records of delivering projects, and ethical codes of conducts. As a combined organisation of substantial size and expertise, we are strongly positioned to help our customers in South Africa navigate some of the complex local challenges such as the new mining requirements, gas programme, power programme, and the demand for clean fuels. “Together, the new entity – Worley – is even more equipped to solving our customers’ energy, chemical and resources needs,” concludes Dreyer. 

W hile financially an acquisition, operationally the transaction is a combination of two highly complementary organisations that creates a pre-eminent global provider of professional project and asset services in energy, chemicals and resources, offering global sector leadership across hydrocarbons, chemicals, and minerals and metals. As one of the world’s largest project delivery organisations, Worley has been a leading global provider of professional services to the resources and energy sectors, and the complex process industries, covering the full project lifecycle in the hydrocarbons, power, minerals and metals, chemicals, and infrastructure sectors. This now includes key strengths from the heritage Jacobs ECR business of complex petrochemical and chemical projects, maintenance, modifications and operations (MMO) for hydrocarbons projects, including onshore and offshore production facilities and integrated project delivery, construction and technical services. Andrew Wood, Worley's CEO says, “This merger is about more than capacity and capability. It’s about opportunity. The opportunity to become the partner of choice for our customers, the employer of choice for our people, and to deliver enhanced returns for our shareholders.” Wood adds that the integration of the two organisations will create a global company of nearly 60 000 people across 50+ countries, fully committed to helping customers meet the world’s changing energy, chemicals and resources needs. The combined force will offer full life cycle services for customers across hydrocarbons, chemicals, and minerals and metals, with extended Outgoing CEO of WorleyParsons RSA Denver Dreyer, who effective immediately is taking up the role of Senior Vice President Mining, Minerals & Metals for Europe, Middle East and Africa for Worley.

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MARKETPLACE

Mind the gap BETWEEN FINANCE AND ENGINEERING

Mining and industrial organisations need to adopt integrated business solutions that enable them to bridge the gap between their engineering and finance departments if they are to maximise the profitability of their projects and gain visibility into – and control over – project costs and performance. By Joe de Klerk, MD at CCSMI – the mining and industrial division of Construction Computer Software (CCS)

of costs and allowables provides the essential information that determines the success or failure of a project. Organisations should seek a system that allows accurate comparison of what is actually happening on a project to what was expected – all in 'real time'. It should allow all cost data (payroll, plant, stock, yard stock, MRP, and so on) to be captured once where the information is first produced (site, head office, yard) and then to be managed through a single database for full integration and real-time analysis. The key to the overall success of any capital-intensive project, is delivery on time and within budget, while maintaining a profit margin. The software with the right controls will help mining and industrial organisations understand where they have already overspent, and help them forecast

W ith margins in this sector under severe pressure, it has become more important than ever for organisations to have a firm handle on tendering, procurement, project costs and time. They can only achieve this when they have access to real-time data that enables them to monitor project processes so that they can make better and faster business decisions. Historically, a lack of integration between the finance and engineering departments (and their data and systems) has prevented mining and industrial organisations from achieving this level of real- time insight and control. Estimators and accountants do not speak the same language and there was a disconnect between financial data and engineering information. Both finance and engineering are key to the profitability of any mining or large-scale industrial project, considering the number of variables, changes, people and equipment involved. Engineering control includes generating and managing allowable and actual quantities of resource, wastages, manhours of labour, production of equipment and time for construction activities. This is every bit as crucial as finance to the success of a project. There are business solutions today that enable estimators and accountants to do their work in the language that is meaningful to them, while producing the real-time reporting about actual and allowable costs that management needs. Using interactive estimating and planning, such solutions provide a link between budgeted cost and time and allow for budgeted costs to be spread over the actual project This produces an accurate project cashflow showing net present value and maximum funding required along with various other statistics. The cashflow could be remodeled to produce various scenarios to allow the organisation to make the right decision at the right time. This real-time, activity-based comparative analysis

the project-to-completion and highlight upcoming problem areas. The right software will not only ensure that an organisations maintains control over its actual spend, but also provide an intimate- level understanding of budgetary amounts, quantities, rates and actual costs. Thus, it brings all the key role players in the company together to make informed decisions from a complete holistic view of the project costs. 

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MARKETPLACE

SCANIA INTRODUCES NEXT GENERATION Scania Southern Africa is introducing a completely new truck range. This is the result of more than 10 years of development work and investments globally. With this new range Scania is extending its offering and can now supply more performance stages, connectivity, a comprehensive palette of productivity-enhancing services as well as sustainable transportation solutions. These can be customised for the highly competitive construction industry.

“T he Next Generation of Scania trucks is undoubtedly the biggest investment in Scania's 125 year history," states Henrik Henriksson, President and CEO of Scania. "It is with hearts bursting with pride that my colleagues and I are now presenting the products and services that will bring Scania to new levels regarding market shares and carry us far into the next decade.” Rollout of the Next Generation The assembly of the new trucks has started in South Africa and the old PGR range is being strategically phased out. The new truck range carries with it a unique toolbox of sustainable solutions in the form of products and services that Scania globally will be the first to deliver in the market. Scania promises that customers will always be able to carry out their work in the most sustainable and profitable way. “At Scania our main focus is always to give our customers the tools that they need to achieve profitability in their business. This year we expand on this focus and reach a milestone by launching our new truck series. Delivery of the new trucks began immediately after the launch event on 21 May. It’s normally a 15 to 20 year cycle before you go to market with a totally new vehicle. It’s an exciting period for us,” says Raimo Lehtiö, Managing Director of Scania Southern Africa. Along with a comprehensive variety of applications and solutions, the segments that are being launched for the Southern Africa market are: long haul, construction/mining and urban distribution. Scania’s unique offering With the introduction of Scania’s new truck range, the start of the industry’s most developed and customer-centric approach is also instituted. This range enables solutions offerings which are fully tailor-made for each customer’s specific business need. Each truck is a production unit. The better adapted it is for its unique assignment and the more supported it is by applicable

customised services, the greater the customer's chances are of getting a return on their investment. The customer’s finances are determined by a range of different factors. Some of them are relatively simple to control while others are influenced by factors not in the customers’ control or are so complex in their nature that the consequences can be difficult for an individual to identify and address. Providing a sustainable solution Scania's starting point to providing a sustainable solution to customers is Total Operating Economy (TOE). The difference between TOE and the traditional Total Cost of Ownership (TCO), where only costs are reflected, is that the revenue side of a customer’s finances are also weighed in. The way payment for a transportation assignment is calculated (by weight, time used, and mileage) is a good example of a factor that must be taken into account when the vehicle and its related services are being specified. Scania has concentrated its entire combined expertise on its trucks, optimised transportation solutions, industry conditions and actual customer needs in the new sales support system that the company has developed. This toolbox is the result of several years' work compiling, analysing and consolidating knowledge, insights and customer needs with regard to the global, multifaceted transportation and truck industry. KEY ADVANCEMENTS IN THE NEWTRUCK RANGE’S AUTOMOTIVE TECHNOLOGY

• • • •

Improved Fuel Efficiency Enhanced Driver Experience Refined Connectivity Upgraded Safety Features

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“Scania is now becoming even better at offering support to customers when it comes to the one business they really care about – their own.”

One size fits no one The importance of being able to design a completely optimised vehicle and support both its ownership and use with related services like financing, service contracts and fleet management services is difficult to overestimate in today's competitive transportation world. Scania is one of the pioneers in connecting trucks in order to help optimise use and availability, among a host of other things. The offering Scania is now introducing will give all existing customers better support and opportunities than ever before to achieve maximum return on their truck investments. This product range and related services, combined with the way Scania has equipped itself to help customers, represents a major development stage in the industry. Scania is now becoming even better at offering support to customers when it comes to the one business they really care about – their own. The next generation includes: The new G Series The new G-series trucks are highly adaptable with outstanding drivability and visibility. This range offers a well-balanced, all round premium cab, with an enlarged set of options which offers the opportunity to tailor-make the G-series to perfection to suite any business’ specific needs. The P Series With the new P-series trucks, customers receive low weight with great visibility and drivability that is well balanced to suit specific inner-city needs. This is the most versatile cab range which is ideal for urban and regional operations and is well proven for construction and other demanding conditions. The S Series The new S-series raises the stakes in long-distance driver comfort. With an interior that’s a haven of luxury. The flat floor, extended

storage facilities and exceptional view from the driver position all add to its unique appeal. The R Series The distinct R-Cab is sturdier yet sharper than ever with an athletic body that redefines premium in the long haulage space. The new R series perfectly fits life on the road. 

KEY FEATURES OF THE NEW TRUCK GENERATION

• New design and shape of the front and chassis for improved aerodynamics • Powertrain updates resulting in exceptional fuel efficiency and driving performance • Extended storage options • Enhanced driver’s seat adjustment options • Maintenance based on your operation increased uptime and profitability • Unique safety features such as roll-over curtain side airbags • More space behind the seats for wider beds • New infotainment system with 7 " touch screen

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ENVIRONMENT & SUSTAINABILITY

SAFEGUARDING THE ENVIRONMENT

T he good news is that the country has access to considerable environmental expertise and experience in this specialised field. According to SRK Consulting associate partner and principal environmental consultant Sue Reuther, a discovery like Brulpadda could – if proven – still take a decade to bring into production. “It may be too early to hail this as a game-changer for the South African economy, but it has certainly raised interest and more than a little excitement,” said Reuther. “Apart from the value of natural gas to the economy, it would also contribute hugely to national efforts to reduce carbon emissions. Natural gas emits about 50% less carbon dioxide when combusted than coal.” There is no doubt much more work needs to be done – such as on further test-drilling and feasibility studies – before Brulpadda can be brought to market. Among the hurdles it will have to negotiate is the range of potential environmental impacts that must be investigated and addressed. What needs to be done? Prospective oil and gas explorers and developers in South Africa generally begin with acquiring a Technical Cooperation Permit or a Reconnaissance Permit, according to Scott Masson, senior Environmental Consultant at SRK. Environmental Management Programmes must be compiled and approved at this stage. A subsequent Exploration Right allows the holder to carry out the entire value chain of petroleum exploration, and an Environmental Impact Assessment (EIA) is required in terms of the National Environmental Management Act (NEMA). During this phase, new geological and geophysical data is gathered using seismic surveys and/or exploration drilling. The new data is processed, along with existing data, to define the oil and/or gas resource. The Production Right, which allows the holder to conduct operations relating to the development and production of oil or gas, also requires an EIA. Environmental Impacts Among the environmental impacts which need to be studied and mitigated during (seismic) exploration are the effects of airguns, which are utilised to generate sound waves for seismic surveys, said Masson. “This underwater noise can have impacts on marine fauna, including pathological injury and behavioural responses that may affect feeding and breeding success,” he said. “Marine fauna can also be injured in collisions with the seismic survey vessel or support vessel, or when they become entangled with towed equipment.” Well drilling generates drill cuttings – essentially broken up pieces of rock removed from the drill hole by pumping drilling fluids into the well; these often accumulate on the sea bed close to the well. Drilling fluids – which comprise water, clays, polymers, emulsifiers or other additives – can have an impact too. Temporary discharge plumes News of the large Brulpadda gas find off South Africa’s southern coast has raised hopes that the local oil and gas sector may hold considerable economic treasure. Experts emphasise, however, that all environment risks need to be properly mitigated in the process of exploiting these resources.

would disperse rapidly into the environment, but may impact on the marine environment in the immediate vicinity. This could affect both the water quality in the water column and the benthic or sea-bed environment, as benthic organisms could be smothered. Well-drilling also generates underwater noise, which is a concern due to its potential impact, particularly on marine fauna. Accidental events – such as a well blow-out, a fuel line rupture or a vessel collision at sea – also pose environmental risks. Although, Reuther noted, gas leaks at sea cause less pollution than oil, chemicals stored on drilling units could be a hazard. “To minimise the chance of accidents, the oil and gas industry has developed and routinely implements protocols, such as airgun soft- start procedures and the use of blow-out preventers and water-based drilling muds. These inform mitigation measures included in EIAs conducted for such projects in South Africa,” said Reuther. She emphasises that an EIA would also concern itself with socio-economic impacts – such as the effects on local fishermen when a safety exclusion zone is implemented around a seismic vessel or drilling rig. Excluding other users from this zone can have direct economic consequences for fishing vessels, and also indirect implications if the seismic survey or drilling alters the behaviour and location of fish stocks in the area. “Our two decades of experience in working with environmental authorities to apply the relevant regulations puts us in a strong position to assist oil and gas companies to comply with local requirements,” she says. “We work with the oil majors, as well as the smaller juniors who focus on exploration before making deals with large producers.” Among SRK’s recent projects have been EIAs for proposed production off SA’s south coast for PetroSA and 2D and 3D seismic surveys in the Orange Deep Basin off the west coast for Total and Impact Africa. The company has also conducted environmental assessments for many offshore concession blocks in Angola and Mozambique and a macro-economic assessment of the East Africa Crude Oil Pipeline in Uganda and Tanzania. As a member of the South African Oil & Gas Alliance (SAOGA), SRK keeps abreast of development and trends in the sector, and its regulatory developments. “Our detailed understanding of the laws and regulations allowed us to recently assist a client obtain Environmental Authorisation for offshore exploration through a Scoping Phase assessment only,” Reuther added. “There were very specific circumstances, of course, but this is indicative of our search for innovative and efficient approaches, which also save our clients time and money.” 

Left : Scott Masson, senior Environmental Consultant at SRK. Environmental Management Programmes . Right SRK Consulting Associate Partner and Principal Environmental Consultant, Sue Reuther.

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CONSTRUCTION WORLD JUNE 2019

SOUTH AFRICA’S LARGEST CONCENTRATED SOLAR IPP PROJECT The Kathu Solar Park in the Northern Cape, was inaugurated recently. High profile attendees witnessed the power of South Africa’s largest concentrated solar power greenfield project in operation. In attendance was Northern Cape Premier, Sylvia Lucas, as well as representatives from the Department of Energy and French and Spanish Ambassadors to South Africa, Christophe Farnaud and Carlos Fernández- Arias, respectively, indicating the importance of renewable energy projects in supporting the struggling South African base load.

K athu Solar Park is a Concentrated Solar Power (CSP) Independent Power Producer project and was built in less than three years. Cutting-edge energy generation and storage technology is pumping 100 MW into the national grid and providing 179 000 households in the Northern Cape with constant power. Isabelle Kocher, CEO of global energy company ENGIE, the lead developer and major shareholder in Kathu Solar Park, says the company is pleased to contribute a sustainable source of clean energy to the grid, in good time. “As this was ENGIE’s first CSP project that required very complex implementation, we are delighted that we are now able to start to demonstrate the application of concentrated solar power to mitigate intermittence issues of wind and photovoltaic and to continue to prove the benefits of the Renewable Energy Independent Power Producer Plan to South Africa’s grid. The KSP project clearly demonstrates the Group’s ambition to lead the way in the competitive energy transition,” says Kocher. The solar park was awarded under Round 3.5 of South Africa’s REIPPP on 15 December 2014 and comprises a mix of stakeholders aimed at meeting stringent commercial and social objectives. The multinational group includes South African investors SIOC Community Development Trust, Investec Bank, Lereko Metier Sustainable Capital Fund, and its co-investors FMO, the Dutch development bank and DEG, the German investment and development company, and the Public Investment Corporation. The main contractor (EPC) was a special purpose vehicle comprising engineering and technology group SENER, ACCIONA and the Kelebogile Trust.Kathu Concentrated Solar Project CEO, Cedric Faye. “From the outset we wanted to make a lasting social-economic impact in the area. Not only are we now providing a sizeable contribution to the local power supply, I am proud to say that in addition to the 1,700 jobs that were created during construction, of

which 42% of the workforce was hired from the local community, the project achieved a 45% local content acquisition mark. This represents a considerable skills transfer to the area.” Financing of the project Investec’s Andre Wepener views Kathu CSP’s investment model as innovative and one that is replicable throughout Sub Saharan Africa. Wepener explains, “It is always our intention to be involved from the early stages to the end of a project financing cycle. We have seen the benefits of employing this approach with Kathu CSP, where Investec were co-developers, had representation on the board and are still shareholders. This is in addition to being a senior debt provider to the project.” Cutting edge technology The main focus has been to ensure that Kathu Solar Park, through the EPC consortium SENER and ACCIONA, was able to make a positive and enduring difference through innovation and technology, with high efficiency and performance to deliver energy to the South African grid, particularly during the evening peak. To achieve this, Kathu Solar Park uses parabolic trough technology equipped with a molten salt storage system that allows for 4,5 hours of thermal energy storage to provide reliable electricity in the absence of solar radiation. The parabolic trough technology is a patented optimised collector technology by engineering and engineering group, SENER. The SENERtrough®-2 collectors are designed to optimise the power storage capacity and keep costs to a minimum. The technique involves using 384 000 large mirrors at Kathu Solar Park to reflect sunlight and collect solar heat to generate electricity. SENER’s innovative design ensures that the aperture of each parabolic trough reduces the cost by 30%. 

From left: Jeff Tshikhudo, Sector specialist: Energy and Infrastructure, PIC; Yoven Moorooven, CEO Engie Africa; Vusani Maile, SIOC CEO; Paulo Almirante, COO Engie; Cedric Faye, CEO Kathu Solar Project; Mohamed Hoosen, Chief Power and Gas Engie Africa; Sylvia Lucas, Northern Cape Premier; Yves Le Gélard, Chief Digital Officer, Engie; Pierre Mongin, Secretary General Engie; Michael Goldblatt and Andre Wepener, Investec.

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CONSTRUCTION WORLD JUNE 2019