the coordinator-general - australian steel...
TRANSCRIPT
The Coordinator-General
Opportunities from landmark Queensland projects
Australian Steel Convention, September 2017
David Edwards
Projects Chief Executive, Special Projects Unit
Department of State Development
What I’ll cover today
• Queensland’s major project pipeline
• Opportunities from Integrated Resort Developments
• Success stories from GC2018 Commonwealth Games
• 1 William Street and 480 Queens Street Case Studies
• Adani Carmichael coal mine, rail and port
Fast Facts
• $174.7 billion of major projects in the pipeline in Queensland
• 16 projects valued at $24.8 billion at tender stage
• 98 projects valued at $48.1 billion in development
• 73 projects valued at $101.4 billion in the planning stage
Queensland landscape – value of projects
$138.39
$22.06
$11.55$2.65 $0.10
$0
$20
$40
$60
$80
$100
$120
$140
$160
PRIVATE STATE FEDERAL LOCAL GOVT J/V - PRIVATE &GOVT
Billi
on
s
Queensland: Project Ownership by Estimated Value ($B)
30/9/2017 - 31/12/20(Source: Cordell)
Queensland Landscape – project mix
$80.62
$46.57
$9.37 $7.33 $6.37 $5.34 $4.22 $3.20 $2.75 $2.48 $2.25 $1.40 $1.20 $0.74 $0.60 $0.20 $0.13$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
Billi
on
s
Queensland Projects by Type and Estimated Value ($B)
30/9/2017 - 31/12/2020(Source: Cordell)
Queensland Landscape – steel content in major projects
Steel content in these projects could be significant:
• resources projects, worth an estimated $33.3B (mainly coal projects) - traditionally
have significant steel content
• ports expansion projects worth an estimated $5.4B also traditionally have significant
steel content
• mixed use, high rise accommodation and residential projects worth an estimated $5
billion – demand for steel reinforcing and structural and architectural steel
© Destination Brisbane Consortium. All rights reserved. Artist’s impression. Subject to planning approvals.
© Destination Brisbane Consortium. All rights reserved. Artist’s impression. Subject to planning approvals.
Integrated Resort
Development Update
Why IRDs?
• attract and stimulate new capital investment
• increase tourism numbers and expenditure
• create internationally-recognised precincts with world class sustainable urban
design and architecture
• transform and activate places
• enhance the cultural and social experience
• IRD’S GROW THE PIE
© Destination Brisbane Consortium. All rights reserved. Artist’s impression. Subject to planning approvals.
International visitors to Queensland
• There were 2.58 million international visitors to Queensland by March 2017, reflecting a
6.8% growth from the previous year
• Expenditure by international visitors to Queensland increased by 2.6% to $5.2 billion p.a.
• Chinese visitation increased by 6.7% to 472,000 p.a. by March 2017 and China continues
to be Queensland’s largest market for visitor expenditure
Source: Tourism and Events Queensland, International Tourism Snapshot, March 2017
ARE WE READY?
Brisbane will
be able to
handle more
flights than
any other
Australian
city when its
third runway
opens.
AFR 6 July 2017
Queensland is one
of the world’s most
popular and
aspirational visitor
destinations, with
world-class tourism
attractions drawing
millions of
international visitors
annually.
Trade Investment Queensland
Prospectus June 2017
As a tourist State, visitor
numbers continue to grow
strongly. Data released last
month shows Australian
domestic overnight travellers
are spending more than ever
before in Queensland
pumping $15.3 billion into
the state economy, and 2.6
million international visitors
pumping a record-breaking
$5.2 billion into the State’s
economy.
Media statement: Premier and
Minister for the Arts 28 July 2017
Just nine months
after launching four
times weekly flights
between Brisbane
and Shanghai,
China Eastern has
confirmed it will
boost services to
daily from
November 2017.
Brisbane Airport Media Release
7 September 2016
Integrated Resort Developments (IRD) –
Singapore’s experience
• Singapore’s annual foreign visitation rates were declining at a rate of 1.8% in 2008
and declining by 4.3% in 2009
• When the two IRDs, Marina Bay Sands and Resort World Sentosa opened their doors
in mid 2010:
➢ visitation increased by 20.2%
➢ $3.7 billion was injected into Singapore’s gross domestic product during the first
9 months of operation
➢ only $720 million was attributed to gaming taxation
• Marina Bay Sands IRD was the catalyst for a broader redevelopment and
regeneration strategy
Marina Bay Sands Integrated Resort Development
© Destination Brisbane Consortium. All rights reserved. Artist’s impression. Subject to planning approvals.
Queen’s Wharf Brisbane Integrated Resort Development
Queen’s Wharf Brisbane - Flythrough
Queen’s Wharf Brisbane
Fly Through
Queen’s Wharf Brisbane Project Timeline
2017 2018 2019 2020 2021 2022 2023 2024
• Access to site
• Demolition of non-heritage buildings
• Excavation for underground
car park begins
Start foundations for
core development area
• Foundations for car
park completed
• Heritage works begin
Core development starts to
take shape as construction
progresses above ground
Internal fit-out of
integrated resort
development buildings
Expected opening of core
integrated resort, including hotels
and all public realm areas
Anticipated opening of The
Ritz-Carlton Hotel and
department store building
Demolition activities during 2017:
• Services removal and diversion work (electrical, gas,
telecoms and water)
• Soft strip of internal fit out in buildings
• Steel bracing for protection of heritage buildings
• Demolition of Executive Building, 80 George Street and
the Neville Bonner Building
• Demolition of Margaret Street overpass linking 80A and
80B George Street over 8 weekends (July to
September 2017)
• Expected demolition completion - end 2017
Queen’s Wharf Brisbane - Current Status
Plan of Development (PoD)
• Destination Brisbane Consortium submitted
the PoD to Economic Development
Queensland for the Queen’s Wharf Brisbane
development on 30 May 2017
• Public notification opened on 6 September
for 30 business days and will close on
19 October 2017
• Decision stage will be 40 business days
after conclusion of public notification
• PoD approval is expected by the end of
2017
• Excavation can then commence
Queen’s Wharf Brisbane - Current Status cont.
© Destination Brisbane Consortium. All rights reserved. All
images are artist impressions, Subject to planning approvals.
18
Queen’s Wharf Brisbane - Early Works
Goodwill extension:
• Mangrove Walk – a 440m pedestrian walk
traversing the mangroves - built in the
Brisbane River parallel to the Bicentennial
bikeway
• Bicentennial Bikeway upgrade and safety
improvements
Waterline Park:
• Recreation hub on the river’s edge offering
places to sit and relax, plus a range of
outdoor exercise equipment and games
Queen’s Wharf Brisbane - Local Content
Destination Brisbane Consortium have reported
the QWB project has:
• nearly 80% local content by some 20 supply
organisations - 77% of which is from SEQ.
• more than 80 external firms engaged in the
design phase
• over 150 people are working on-site (as at
July)
• engaged the Industry Capability
Network (ICN) to prepare an interim
Contestability Assessment and Supply
Market Analysis for the major works phase of
the project and also for the Waterline Park
and Goodwill Bridge Extension.
© Destination Brisbane Consortium. All rights reserved. All images are artist impressions,
subject to planning approvals.
ONE in four of all additional jobs expected to
be created in Brisbane’s CBD over the next
15 years will be at the Queen’s Wharf
integrated resort precinct.
Courier Mail 6 September 2017
Queen’s Wharf Brisbane - Local Content cont.
• Authentic strategic approach to Local Content with Destination Brisbane Consortium
• Full, fair and reasonable access to supply opportunities
• Department of State Development is working closely with Destination Brisbane
Consortium on their proposed construction program and procurement strategy
• Outcome will be the development of a Local Industry Participation Strategy
• Ongoing engagement with industry
Building on previous successes
• “Good news” stories from a steel perspective with regard to Games venue construction.
• The actual contract award figures are not publishable due to “commercial in confidence”
considerations.
• However, there is some significant data that can be communicated.
• An underlying theme recently from the industry is to better understand the “buyer” need
and look at the opportunity from a supply chain perspective, rather than a separate link
in the chain.
• This collective approach has a much better chance of greater success and can quickly
lead to a “solution” driven process not just a procurement driven process.
GC2018 Commonwealth Games
Summary
• 11 Venues - $350 million
Plus Village Parklands @ $550
=$900 million
• Over 2500 jobs supported through design
and construction for all venues
• Approximately 6500 tonnes of structural,
reinforcing and post tensing steel identified
GC2018 Commonwealth Games cont.
GC2018 Commonwealth Games cont.
Belmont Shooting complex
• 350 tonnes of steel
• Steel provided by local Brisbane
business
Carrara Sports and Leisure Centre
• 1100 tonnes of steel
• Steel provided by local Yatala business
• 15,000m3 of concrete
GC2018 Commonwealth Games cont.
Coomera Indoor Sports Centre
• 600 tonne of steel required for the
superstructure
• Approximately16km of tubular steel pieces
• Employed 20 staff at a Stapylton (Gold Coast)
business during the steel fabrication and
construction process
Gold Coast Aquatic Centre
• Steel room frame supplied by
Beenleigh metal fabricator
GC2018 Commonwealth Games cont.
Gold Coast Hockey Centre
• Steel supplied by local Gold Coast
fabrication business
Queensland State Velodrome
• 1165 tonne of steel required for the
superstructure
• Supplied by Beenleigh metal fabricator
• Supported the employment of 12
additional staff
GC2018 Commonwealth Games cont.
Village Parklands – Games Village
• 2379 tonnes of reinforcement
• 896 tonnes of post tension bars
• 56,252m3 of concrete
Architectural Arbour
• Banyo business was contracted to supply
and install the Parklands Arbour
• Steel was cut, welded and bent using
laser technology at Banyo workshop
April 2017 – aerial view
GC2018 Commonwealth Games cont.
Village Project (framing for the athlete
village)
• TRUECORE® steel G550 Framing Material
• TRUECORE® steel G550 .42 Gauge for battens
• The framing was initially going to be constructed
in Vietnamese Steel due to price
• Local industry intervention to achieve outcome
Carrara Sports Precinct Redevelopment
• .55 x 1200 Copper Penny Metallic
COLORBOND® steel
• .55 x 1200 Carrara Gold Metallic
COLORBOND® steel
Athletes Village/Parklands Project
• COLORBOND® steel Big Bang (Custom)
Steel cladding/roofing
Image courtesy of Parklands Project by Grocon.
Carrara Sports Precinct Redevelopment
1 William Street (1WS)
• $600 million landmark structure in Brisbane CBD
– 44 above ground floors, 3 basement levels
• Tallest commercial building in Brisbane (second tallest overall)
• Required in excess of 7000 tonnes of reinforcing steel for a complex design
Two critical problems identified:
• Overly complex design requiring excessive quantities of expensive steel
• Site access constraints resulting in scheduling issues, delays and costs
1 William Street (1WS) cont.
Approach – early engagement
• Tender team established to work with proponent
• Engagement commenced long before actual tender
stage
• Approximately 6 months spent in exploring options
• Complex 3D models produced
• Issues jointly resolved before construction phase –
avoiding additional costs due to time, error and
waste
• Close contact and communication maintained
throughout construction
• Arrium appointed as steel supplier
1 William Street (1WS) cont.
Delivered Solution
After months of planning the tender team, together with the customer, settled on a suitable
solution to the identified needs.
“The required solution involved
developing prefabricated
reinforcement cages that could
splice together in the landed
position without the introduction of
more steel to be tied by hand.
ARC provided an exceptional service
from concept through to completion,
which in my view is industry leading.
The systems we developed
eliminated our access and egress
related risks and greatly reduced our
long term manual handling and work
at heights risks.”
Beau Lloyd, Project Engineer,
Brookfield Multiplex
“There is some very unique and very
large reinforced concrete elements
in the 1 William Street tower
structure. With such major
reinforced concrete structure, the
reinforcement requirements are in
turn substantial. The site installation
process posed serious access,
egress, long term manual handling
and work at height related risks
which we had to overcome. We
decided to prefabricate our
reinforcement cages in such a way
no one on the entire project team
had seen or done before.”
Beau Lloyd, Project Engineer,
Brookfield Multiplex
1 William Street (1WS) cont.
Benefits Delivered
Product:
• Prefabricated sections instead of traditional “cut &
bent bar” offer
Process
• Reductions in steel fixing (both time & cost), on-
site manual handling of material, completion time
for reinforcing work and;
• Increased reliability and accuracy (sections
delivered to correct location with appropriate
alignment whilst reducing onsite supervision)
Performance:
• Reductions in build time for reinforcing steel, direct
costs & time in relation to crane lifts and materials
handling on-site
• Reduced project risk through the reduction of
manual handling and working at height s
associated with steel fixing traditional product
offers
1 William Street (1WS) cont.
Benefits Derived
• Improved margin through value-added prefabricated solution
• Deeper relationship with customer for complex steel reinforcing applications
• Technical expertise in this solution area, market recognition as a leading provider of
advanced prefabricated reinforcing solutions
1 William Street (1WS) cont.
Lessons Learned
• Importance of partnering customers
early in design during the pre-tender
stage
• Influence selection criteria for the tender
whilst identifying additional benefits to
be delivered
• Approach demonstrated supplier of
choice for complex reinforcing
applications
• Open and honest dialogue with the
customer, identified benefits
(innovation, handling of material and
site productivity), which all resulted in
savings to the project.
Brisbane Office Tower – 480 Queen Street
• Innovative structural steel framing
solution for 36 level office tower
• First successful full-scale use in an
Australian office tower and the first
steel office tower in Queensland for 40
years
• Innovate steel framing scheme (4000
tonnes of UV sections) conceived for
economy, simplicity and speed of
construction
• Some examples of results include 40%
less welding, 30% less bolting (8000
less bolts) and nil beam penetrations.
Adani Carmichael Coal Mine rail and port
• Adani Australia have signed an agreement to purchase
$74 million of railway track from South Australian-based
GFG Alliance, formally Arrium Mining and Materials Pty
Ltd, to construct the North Galilee Basin Rail project.
• The contract will encompass the materials required to
construct a 388km rail link from the Carmichael mine to
the Abbot Point coal terminal.
Takeaways
• Queensland’s local content approach for major projects builds on 15 years
experience and success
• Authentic customer focussed approach
• Innovation and solution driven outcomes underpin the process going forward
• Industry stakeholders and government can work together to secure holistic
economic and industry development benefits