| |
|
|
| |
|
|
| |
| OPERATIONAL REVIEW |
| |
| CONSTRUCTION & ENGINEERING CONTINUED |
| |
| BUILDING & CONSTRUCTION CONTINUED |
| |
|
| |
| Market |
The Gautrain Rapid Rail Link project has been underway
for nine months following commercial close in September
2006. Major projects such as Gautrain demand higher
levels of management focus than normal construction
activities and require a premium allocation of skilled
leadership and resources. Murray & Roberts has adopted
a management model that ring-fences these projects
under parallel leadership, which in the South African
context is the responsibility of Murray & Roberts executive
director, Sean Flanagan.
In February, Murray & Roberts in joint venture was awarded
the Greenpoint Stadium in Cape Town for the 2010 Soccer
World Cup. The R3 billion 68 000-seater stadium will be
constructed within a tight 34 month period. A unique
feature of the stadium will be a steel cable tensioned glazed
roof. Extensive value engineering has been undertaken in
partnership with project consultants and the City of Cape
Town to reduce time and costs.
The commercial and retail building market remained
buoyant during the year. In Gauteng, Murray & Roberts
Construction was awarded contracts valued at over
R800 million for hotel, residential and piazza developments
at Melrose Arch and a R200 million contract to build a
US Consulate in Sandton. The R350 million Loch Logan
resort in Bloemfontein is on schedule for completion in
September 2007 and construction is underway on the
R700 million Bedford Square project in Bedfordview. The
company is currently negotiating the ABSA Towers West
Project and the Houghton Golf Estate development,
collectively estimated at R1,7 billion. Work on these
projects is expected to start before December 2007.
Murray & Roberts Construction has strengthened its
management capacity in Gauteng to facilitate expansion
plans in the province.
The Concor building operations have undergone a
successful transformation in recent years, exiting all markets
other than Gauteng and strengthening management and
risk capacity. Concor completed the Bel Air shopping centre
in North Riding, the Oprah Winfrey Academy for Girls at
Henley on Klip and the International North Pier at OR Tambo
International Airport during the year. Work commenced on
an enabling contract to build the multi-purpose head office
complex for the Department of Foreign Affairs in Pretoria
which will be let under a public private partnership
concession contract if financial close is achieved.
The Western Cape market has remained positive but
historic problem contracts and delays in commencement
of key projects continued to limit our performance. About
25% of resources in the province have been allocated to
the Greenpoint Stadium, with sufficient capacity retained for significant new opportunities on the V & A Waterfront
and the Cape Town CBD regeneration project.
The R150 million Hillcrest shopping centre in Durban
was completed during the year as was the bulk of civil
works for the new NPC Simuma clinker line, in partnership
with other Murray & Roberts companies.
Major resource beneficiation and industrial programs offer
significant opportunity in the civil engineering market.
Work on the R3,6 billion Kumba Resources expansion
project at Sishen is well advanced and Murray & Roberts
Construction has secured additional civil work on an iron
ore expansion project for BKM Assmang. Concor is
involved in bulk earthworks for the Sishen and Assmang
projects, Gautrain and the De Beers Voorspoed mine.
Concor also successfully completed the Dwaalboom
expansion project for PPC and work for Anglo Platinum
at PP Rust during the year. The company is currently
installing four platinum concentrators as part of the major
producers' expansion programs.
Concor has strengthened its focus on heavy civil
engineering, road building and infrastructure devel opment
with specialist capacity to build incrementally launched
bridges and vertical sliding structures. The company's
reputable roads & earthworks business has assumed
responsibility for the Murray & Roberts capability in this
sector and contracts valued at R1,1 billion have been
awarded to date, including expansion of the railway
between Sishen and Saldanha for Transnet.
Major opportunities in the power sector have started to
materialise as Eskom commences the roll-out of its first
phase R150 billion five-year capacity expansion
program. Murray & Roberts operations are prepared for
a key implementation role in the new coal-fired Medupi
power station at Lepalale and are negotiating in joint
venture for the estimated R6,5 billion civil package for
phase 1 of the Mmamabule power station in Botswana.
Concor and Murray & Roberts Construction will tender
for the Braamhoek pump storage system in joint venture
with Hochtief, Jaeger Bau of Germany and Murray &
Roberts Cementation. Having completed the exploration
tunnel for the project, Concor has submitted a tender in
joint venture for two dams that will supply the power
generation system.
Murray & Roberts Botswana achieved a significant
turnaround in its performance, including recovery of
losses on Serowe Hospital and successful completion of
a new diamond sorting facility for Botswana Diamond Valuing Company in Gaborone. Murray & Roberts
Namibia also delivered a solid performance. Both
businesses have shifted their focus to work available in
the mining & minerals and power sectors.
In line with the Group's strategy to pursue major projects
in the Middle East, construction activities in the region
continue to be dominated by the R8 billion Dubai
International Airport Concourse 2 project where Murray &
Roberts is leader of a joint venture with local partner
Habtoor and Takenaka of Japan. The project is on
schedule for substantial completion by December 2007.
The first two planned handovers were successfully
concluded during the year. Construction Middle East is
in negotiation with Dubai's Department of Civil Aviation
for the Emirates Airline Exclusive Super Jumbo Airbus
A380 Concourse 3 project. The company is progressing
on schedule with the R1,6 billion Etihad Terminal at Abu
Dhabi Airport and is well positioned to secure a portion of
the R30 billion of airport expansion work planned for Abu
Dhabi over the next six years.
During the year, Construction Middle East completed
the R500 million fit-out for the Burjuman mixed-use
development in Dubai, the R400 million 40-storey Goldcrest
residential development in Dubai and various Dubai
Airport projects valued at R400 million. An important
achievement was the completion of the R400 million
Durrat Bridges a full year ahead of schedule. The Bahrain
World Trade Centre is close to completion and the
Arcapita Head Office in Bahrain, secured during the year
as a negotiated partnership, is progressing well.
Murray & Roberts has entered a strategic partnership
with Sama Dubai, a subsidiary of Dubai Holdings, to
manage Sama Contracting. This company will implement
about R150 billion of the development plans of Sama
Dubai, commencing with the Lagoons mixed-use project
in Dubai. Meanwhile, Construction Middle East has
secured the first enabling package in partnership with
Nass for Sama's Salam Resort Complex in Bahrain and is
well placed to secure the first phase main package for the
R4 billion Hotel, Conference Centre, Royal Villas and Spa. |
|
|
|
|
|
|
|
|
|
Operational review
