3 New Zealand Project Wins - Downer News
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Downer News Issue 7 September-October 2016 3 New Zealand Project Wins 2 Newcastle Light Rail 6 Award winners 8 Otracom redevelopment
2 Issue 7 September-October 2016 PROJECT WINS Artist’s impression of Newcastle’s new light rail Newcastle Light Rail In early August, Downer announced that “Downer has a long and proud history in Newcastle with our current operations based at sites including Cardiff, Kooragang Island, Port it had signed a contract with Transport Waratah, Hexham, Teralba and Mt Thorley,” Mr Fenn said. “We provide for NSW to be the Managing Contractor customers in the Hunter region with a diverse range of services for the Newcastle Light Rail project. across sectors including road, rail, mining, utilities, technology and communications and engineering, construction and maintenance. Under the contract, Downer will work with Transport for NSW to “Downer works closely with Transport for NSW and design, construct and commission 2.7 kilometres of light rail track, we look forward to helping them deliver this signature six light rail stops, a stabling and maintenance facility, road works project for Newcastle and to contribute to the and associated precinct works. The track will run from the new transport interchange at Wickham to Pacific Park. revitalisation of the State’s second largest city.” The Newcastle Light Rail is a key part of the Newcastle Urban The contract commenced in August and is scheduled to be Transformation and Transport Program which has been established completed in 2019. to deliver the NSW Government’s commitment to revitalise the The Chief Executive Officer of Downer, Grant Fenn, said Downer city. The program aims to bring people back to the city centre by was delighted to have been selected to deliver this important strengthening connections between the city and the waterfront, project for Transport for NSW and the people of Newcastle. creating employment opportunities, providing more public space and amenity, and delivering better transport. n Karara Extension Downer has signed a contract extension The value of the additional four years work is estimated to be approximately $350 million. with Karara Mining Ltd that extends the Downer has been providing mining services to Karara since the current contract for a further four years magnetite operation commenced production in February 2012. from the original completion date of “This extension is an endorsement of Downer’s strong safety and 28 February 2018 until 31 March 2022. productivity performance and we look forward to bringing further value to Karara’s operations by reducing operating costs, increasing productivity and enhancing safety,” said Grant Fenn, Chief Executive Officer of Downer. n
Downer News 3 PROJECT WINS New Zealand Project Wins Downer’s New Zealand business has had a very successful few months with project wins across a number of sectors. In August, a joint venture between Downer Downer will work closely with Auckland Holcim and McConnell Dowell was awarded the contract to deliver the NZ$195 million Transport and use its extensive experience with complex engineering projects to help project second stage of the Christchurch Southern build a better connected Auckland. Motorway (CSM2). In addition, Downer has recently won CSM2 is the final section in the Canterbury contracts in New Zealand totalling around Roads of National Significance (RoNS) A$460 million. These projects include: portfolio to be awarded and will complete ■■ the Coastal Otago Network Outcomes Downer took out the top spot a package of projects designed to address Contract (NOC) which covers routine increased travel demand and congestion in maintenance and operation of more at the Civil Contractors NZ the south of Christchurch and Canterbury. than 770 kilometres of the State Hirepool Construction Excellence The upgraded road network will provide Highway network until July 2023; Awards in August for the better access to and from the south of ■■ an alliance between Downer and the Christchurch, the city centre and Lyttelton, NZ Transport Agency to manage Holcim project in Auckland by improving the capacity, safety and alignment the Milford Road network including and Timaru, for projects of the Christchurch Southern Corridor. maintenance of State Highway 94, greater than $30 million. CSM2 includes eight kilometres of new the Homer tunnel and avalanche four lane motorway, five kilometres of programs, until July 2024; Three years ago, Holcim embarked on a project ■■ contracts for the maintenance of the to secure their strategic future in New Zealand. existing SH1 duplication, five kilometres of local roads and adaptions, seven bridges urban and rural road networks for Downer was engaged to provide Early over the new highway and one local road Dunedin City Council and Hauraki Contractor Involvement and main construction works for Holcim’s $100 million investment in culverted beneath it. Construction will begin District Council until June 2019; two new 30,000 tonne cement storage facilities. in October and is expected to be completed ■■ upgrading a six kilometre section of the by late 2019. Waikato Expressway, a project within Downer engaged and managed over the Roads of National Significance (RONS) 80 consultants, sub-contractors and suppliers In July, the Downer-Soletanche Bachy from around the world to build these dome program for the NZ Transport Agency; joint venture was awarded one of the storage facilities in New Zealand. Works also first construction contracts for the City ■■ three projects in Christchurch for the included ship unloading at both sites and ship Rail Link project, an underground rail line Canterbury Earthquake Recovery Authority loading at Timaru, an innovative pneumatic and several projects for Christchurch linking Britomart and the Auckland city cement transfer system, a cement aeration City Council as part of the Dudley system, truck load facilities, a flagship centre with the existing western line near Mt Eden. Creek Flood Remediation scheme; office and laboratory, utilities buildings, ■■ a number of open space management and mechanical and electrical services to make the plant operational. contracts across the North Island; and ■■ a project to construct a new wharf and Downer commenced this project in February passenger terminal at Half Moon Bay in 2014 and handed it over 27 months and Auckland as well as a water maintenance 226,000 working hours later, with an excellent safety and environmental record, on time and contract for Taupo District Council. within budget. n The Chief Executive Officer of Downer, Grant Fenn, said: “These contract wins reflect the strength of our business and the breadth of our capability in New Zealand.” Congratulations to our Kiwi colleagues! n
4 Issue 7 September-October 2016 OUR BUSINESS Full Year Results On 4 August, Downer reported its results for the 12 months to 30 June 2016. All announcements and presentations are available on the Downer website and intranet, with the key numbers being: The Chief Executive Officer of Downer, Grant We must maintain the momentum and ■■ Net profit after tax of Fenn, said in his message to all employees: ensure we are focused on helping our $180.6 million; customers to succeed. “Overall I am very pleased with the results, ■■ Total revenue of $7.4 billion; particularly because for the sixth successive “Thank you for your hard work during the year we have delivered profit on target and 2016 financial year and, most importantly, ■■ Earnings before interest and tax of $276.9 million; an outstanding cash flow result. please remain vigilant about safety and continue to look out for yourself and your ■■ Operating cash flow of “Our business is successfully transitioning colleagues,” $447.8 million, representing for the growth in public infrastructure and cash conversion of 92.8% of service delivery. Over 55% of Downer’s Through the month of August, Mr Fenn earnings before interest, tax, revenues today are generated from servicing discussed the results with groups of employees depreciation and amortisation; public infrastructure customers in Australia in Melbourne, Brisbane, Sydney, Hexham, and New Zealand and this percentage will Perth, Auckland, Wellington and Christchurch. ■■ Gearing of 4.0% with available rise in the years ahead. At the beginning of his presentations, liquidity of $1.1 billion; and Mr Fenn highlighted the importance of our “I am also pleased that our relaunched brand Purpose, Promise and Pillars. Please take ■■ Work-in-hand of $18.6 billion. and Relationships Creating Success program a moment to remind yourself of these has been embraced by our people and foundations of our business. n received so positively by our customers. OUR PURPOSE, PROMISE AND PILLARS OUR PURPOSE OUR PILLARS We exist to create and sustain the modern environment by building trusted relationships Thought with our public and private Safety Delivery Relationships Leadership sector customers. OUR PROMISE Zero Harm is embedded in We build trust by deliverying on our We collaborate to build and We remain at the forefront of our To work closely with our Downer’s culture promises with sustain enduring industry by employing and is fundamental excellence while relationships the best people and customers to help them succeed, to the company’s focusing on safety, based on trust having the courage using world leading insights future success value for money and integrity to challenge the and efficiency status quo and solutions. Our business is founded on four pillars which support our Promise and our Purpose. If you would like a Purpose, Promise and Pillars poster for your workplace, order from the McDonald portal.
Downer News 5 OUR BUSINESS Left to right: Andrew Foster, EGM Engineering and Technology; Brett Sangster, EGM Defence; Troy Huckstepp, AGIS Director; Joel Deans, AGIS Director; and Brendan Petersen, CEO Engineering, Construction and Maintenance. Downer expands its Defence footprint with acquisition Downer’s footprint in the Defence sector has been expanded with the acquisition of AGIS, a professional services and engineering company. AGIS provides project management, systems “Defence represents a growth service ‘smarts’, together with its military engineering and integration, and capability business sector for Downer with credentials, has allowed them to establish development advice to a range of government significant opportunities in the themselves as a trusted advisor inside agencies including the Department of Defence, pipeline over the next 10 to 20 years Defence and government, providing both Australian Defence Force and Department that fit well within our current customer-side services and program of Foreign Affairs and Trade. delivery on major capital projects such as capabilities,” he said. the replacement of deployable wide area AGIS was founded in 2008 and employs more “The Defence sector will continue to be a networks and test facilities to support the than 70 people, including those with subject growth market for the foreseeable future new submarine fleet. matter expertise in specialised Defence fields. and Downer, with its strong track record in “We are excited about the The CEO of Engineering, Construction and the delivery of Defence projects in Australia Maintenance, Brendan Petersen, said the opportunities created by this new and New Zealand, is well placed to take a acquisition represents a significant opportunity partnership and look forward to meaningful role. for the two companies to combine skills and continued growth in the future.” experience in the Defence sector. “AGIS adds to Downer its historical knowledge and relationships with the AGIS will retain its brand and the management Department of Defence and other important and operation of the business will remain government agencies. AGIS’s technical in place. n
6 Issue 7 September-October 2016 AWARDS Awards for EC&M The National Electrical and Communications Association (NECA) has recognised us with a number of State awards at the annual industry Excellence Awards. State NECA award win in Victoria Our Victorian Construction team won the overall award for Commercial Commenting on the award win Brett Ardern, Operations Manager Large Project for the Victorian Comprehensive Cancer Centre (VCCC) South East Region, said: “It is a great endorsement to be recognised project with judges recognising Downer’s ability to deliver a technically by the National Electrical and Communications Association for the innovative, high quality outcome on time, on budget and without great work our team delivered for the VCCC project. incident for this landmark project. The Victorian Comprehensive Cancer “This award is testament to the strong relationships forged between Centre project has delivered a new $1 billion facility, purpose-built the Downer project team, our subcontractors and our client, who for cancer research, treatment and care. Downer’s scope of work worked collaboratively to successfully deliver a challenging yet on the project consisted of the supply, installation, testing and rewarding and beneficial project for the community. commissioning of electrical infrastructure services. “I congratulate everyone involved with the Victorian Comprehensive In addition to the excellence award win, the Construction team also Cancer Centre and Post Entry Quarantine Facility projects on this received a Certificate of Commendation for Commercial Large Project great achievement.” for the Commonwealth of Australia Post Entry Quarantine Facility project. Steve Turner, Project Manager (Yandi Sustaining project), Len Geoff Baudains, Project Director Wheatstone LNG project, Left to right: Mike Purnell, NECA council member, Cindy Rafanelli, Cappeluti, Operations Manager, Construction WA, Craig Saywell, Best Third Year Apprentice, Harrison Gray and Adam Cook, L&H State Manager Victoria and Tasmania and Andrew Aquilina, Project Manager (Harding Dam Water Treatment Plant project) Executive General Manager, Construction. Regional Manager Commercial & Social Infrastructure, Downer and Adam Cook, Executive General Manager, Construction. Engineering, Construction and Maintenance. Four NECA award wins in Western Australia Our Construction team in WA won the overall award for Industrial Best Second Year Apprentice Commercial, and apprentice Harrison Large Project for the Yandicoogina Iron Ore Mine with judges Gray, currently working on the Wheatstone oil and gas project, was recognising Downer’s ability to deliver a technically innovative, high awarded the overall award for Best Third Year Apprentice. quality outcome on time, on budget and without incident. Downer In addition to the award wins, Downer’s Next Generation Technologies delivered electrical and instrumentation services and the scope of business received a Certificate of Commendation for Energy Efficiency work consisted of the construction of a new wet processing plant, and Environment for the City of Perth Mobile Solar CCTV Unit project. transfer stations, conveyors and crushing plant as well as critical cut over works of new systems into the existing brownfields plant. Downer’s Executive General Manager, Construction, Adam Cook, said: “It’s great to be recognised by the National Electrical and Communications The team also won the overall award for Industrial Medium Project for Association for the work our project teams and apprentices have the Harding Dam Water Treatment Plant which included construction delivered for our projects in Western Australia. To win one NECA of a new 33kV substation and delivering increased power supply Excellence award is a great result, but to win four awards and a to enable future expansion to boost capacity to 60ML/d. With the commendation is an outstanding achievement. Our Construction teams ability to monitor performance remotely, the new substation is a key and our two apprentices should be very proud of their award wins and upgrade for the Water Treatment Plant. I am thrilled they have been recognised for their efforts.” . Downer apprentice Hamish Watson, who works on the Mandurah Forum shopping centre expansion project won the overall award for The State winners will now go on to the NECA National Awards which will be announced in late November. n
Downer News 7 AWARDS Samantha Wood recognised at Women in Industry Awards 2016 The third annual Women Pictured left to right: Andrew Fowler, Senior Project Manager, Tasmanian Department of State Growth; Daniel in Industry Longey, Project Manager, VEC; Lincoln Bromwich, General Manager, VEC & Jo Varley, Membership Manager and Strategic Support VIC/TAS, Dial Before You Dig Awards were held VEC shines at the on 14 July to recognise and reward Tasmanian CCF Awards the achievements of women working within the mining, engineering, manufacturing, logistics VEC Civil Engineering (VEC) has received exceptional and commercial road recognition at the recent Tasmanian Civil Contractors transport industries. Federation (CCF) Earth and State Awards gala event, taking This is the only awards program of its out two Awards and receiving three finalist nominations. kind to encompass mining, manufacturing, engineering and now both transport and VEC took out the State Winner Category logistics. It encourages the industrial 4 Award (project value $10 to $30 million) world to raise the profile of women for their Tasmanian Highway East Derwent VEC also received working in these sectors by embracing Highway Interchange Roadworks project three finalist diversity and creating clear paths for and the Commitment to Training and Skills Development (Employer) Award. nominations for: the next generation to follow, as well as highlighting all the work done by the ■■ Equipment Operator pioneering women of Australian industry. “Being recognised by our industry of the Year: Keith Lee; Samantha Wood was a finalist in the for the work we deliver and the ■■ Category 2 (project value “Excellence in Mining” category, recognised importance we place on the training $1 to $5 million) for their Slip for her achievements as a Shift Supervisor and development of our people and Bank Stabilisation Rock at the Christmas Creek mine. is something special, and these Cutting program of work for awards reflect the outstanding the Tasmanian Department In June, Samantha transferred to the work of our team,” said Lincoln role of Autonomous Haulage System of State Growth; and Bromwich, General Manager, Supervisor at Meandu Mine. ■■ Category 3 (project value VEC Civil Engineering. $5 to $10 million) for their “It was an honour to be nominated, let alone receive, an award in the Upper Ringarooma Irrigation Mining excellence category. I hope CCF Tasmania’s Earth and State Awards and Scheme project for Tasmanian my recognition demonstrates to Gala Dinner is an annual event Irrigation. young women across Downer that which celebrates the achievements and we can be successful in our industry successes of Tasmania’s Civil Contracting irrespective of gender. I believe it’s businesses and their employees. As winner important to have great role models of the Category 4 State Award, VEC will and I left the event feeling very inspired by all the amazing finalists be representing Tasmania at the National and guest speakers.” n CCF Earth Awards in Canberra – which will be held in October. n
8 Issue 7 September-October 2016 INNOVATION Otracom redevelopment project awarded to Snowden Downer is redeveloping its world-class tyre analysis and reporting software, Otracom, to bring even more value to its users across the globe. The redevelopment project has been awarded to Snowden, the developers of the original Otracom solution and other world-class mining software systems. In use in seven countries at over 80 mines, subscribe to the system itself. Otracom is Snowden is a mining consultancy and software Otracom is an internationally recognised Tyre user-friendly, and provides integration with business that supports mining companies Management System (TMS) that tracks and tyre-pressure management systems (TPMS), and their investors in evaluating new mines, manages tyres and rims from manufacture fleet management and ERP systems. It is improving the performance of existing to disposal to identify performance trends supported from Australia, with support operations and complying with regulatory and, ultimately, reduce tyre-related costs. resources also based in South Africa and Chile. requirements. Perhaps best known for 30 years It provides customers with lifecycle inventory of mining technical consulting experience The improved software will address user control (including repairs, transfers, scrapped across the globe, Snowden has also developed feedback and suggestions, as well as tyres), tyre cost analysis, budgeting and a growing technology business. Over the incorporating new and exciting technologies forecasting, real-time alerts and notifications, past 15 years, Snowden has delivered world- that will improve performance, user experience and business intelligence reporting. class commercial mining software systems and deliver enhanced reporting and analytics such as Reconcilor and Supervisor, as well Otracom is a multi-language web and mobile for users to drive improved business as developing and maintaining a number app-based system accessed over the Internet. performance. The redeveloped software of bespoke systems for some of the largest Customers use Otracom either as part of the is planned for release in early 2017. mining companies in the world. Otraco tyre management service or
Downer News 9 INNOVATION Snowden and Microsoft form strategic partnership Snowden has formed a strategic partnership with Microsoft to drive cloud-first solutions to the mining industry. With an agreed strategy to make cloud technologies relevant to mining, both parties are working closely to develop and market Snowden’s new cloud platform. Due for launch later this year, the new platform will deliver rich end-to-end capability from data import and storage through to the application of advanced analytics, machine learning and visualisation. The CEO of Snowden, John Hearne, said the support of Microsoft was a The platform is built on the latest strong endorsement. services provided by Microsoft’s “Our decision to invest in the cutting edge cloud platform, development of a world-class Azure. Snowden’s platform cloud platform on the latest enables the rapid implementation technology is something the of Internet of Things solutions, mining industry is demanding to ingesting data from devices and drive productivity improvements. traditional data sources alike, We look forward to introducing extracting valuable insights and Microsoft’s leading technologies presenting those insights through to our customers, and exploring Brendan Swan, Plant Systems Superintendent powerful visualisations. the wealth of opportunities that for Downer’s Mining division, said: “Downer is excited to commence this redevelopment It also delivers high-tech cloud-based arise from this association.” project to upgrade our Otracom software applications which leverage the depth system. We are very happy to have Snowden of technical mining knowledge in the on board as our partners in this project. Snowden team and partners it with the Snowden brings innovation, efficiency and power of scalable cloud computing to professionalism alongside a proven track provide solutions to complex problems record of delivering software development that can be run on a PC, tablet, or even Rob Taylor, Head of Strategic Deals projects. Snowden will be working with a smartphone. at Microsoft Australia, said: Downer’s range of domain experts on this project and we look forward to showing Providing this level of highly configurable “Empowering mining data mining, without the need to install organisations to achieve more our users the enhancements and new additional software, places Snowden at becomes possible when industry capabilities over the coming months”. the forefront in effectively applying this leaders such as Snowden invest John Hearne, CEO of Snowden said: technology to the mining industry. n and innovate in the sector. We are “Snowden is thrilled to be awarded this work and be working with Downer on this excited to work with Snowden exciting project. We are looking forward to to bring increased flexibility, implementing state of the art technology to scalability and adaptability to improve all aspects of the user experience mining organisations through and outcomes. This award provides support this strategic partnership.” to our growing technology business.” n
10 Issue 7 September-October 2016 AROUND DOWNER The first train crossing following the urgent reinstatement work delivered by the VEC team on the Kimberley Rail Bridge. VEC delivers TasRail flood damage reinstatement work in record time Our VEC Civil Engineering business in Tasmania has stepped up to the challenge and delivered flood damage reinstatement work in record time, ensuring critical services are back and running for TasRail. The reinstatement program of work saw the precast abutment, fabrication and installation business completing technically challenging of a 45-tonne steel bridge span, construction critical infrastructure repair projects including of 200 lineal metres of rail embankment to a the Kimberley Rail Bridge over the Mersey height of four metres, track install and rock River in North West Tasmania that partially protection of the abutment. collapsed and needed embankment In order to meet the tight schedule VEC Civil reinstatement. Engineering utilised its pre-cast concrete “Our commitment to get the Kimberley fabrication facility to construct the concrete Rail Bridge up and running in five weeks abutment and abutment earth retaining panels. delighted our customer, TasRail, who “The first train passed over the Kimberley needed this critical infrastructure urgently Bridge on Thursday 21 July just after 8:30am, reinstated,” said Lincoln Bromwich, General in line with our commitment,” said Lincoln. Manager, VEC Civil Engineering. “Our local Tasmanian team should be very The floods caused extensive damage to the proud of themselves – they delivered a location, and works included geotechnical Flood damaged Kimberley Rail Bridge prior to fantastic outcome in tight timelines, safely, reinstatement work investigation, design, demolition of collapsed and exceeded customer expectations.” n structures, driving steel piles for a new abutment, fabrication and installation of
Downer News 11 COMMUNITY Wesley Mission Vision Valley gets a Downer facelift More than 60 workers from our Road Services Network Management team recently pitched in for a day to help improve the facilities at Wesley Mission Vision Valley. They painted the auditorium, a few rooms “Over the past year, staff at Wesley Vision “Our mission is to do all the good and a chapel, repaired a retaining wall, Valley have supported over 23,000 guests to we can, because every life matters constructed an archery area, cleared an create memorable experiences and re-learn and we are grateful to have Downer overgrown bushwalk and carried out some how to work as a team,” said Andrew Moore, and their skills on the journey with other general vegetation clearance. Executive Manager – Conferences and us,” he said. Education at Wesley Mission Vision Valley. “We really wanted to engage with “Keeping a large Australian bush-based “A number of our employees work on the our local community and Wesley conference and recreation facility in good maintenance contract that cover the local Mission Vision Valley was the area, so having them come in and give a day obvious choice for us as they work shape is a constant challenge. We are excited to have the team from Downer of their time helping out a local charity was closely with community groups a very meaningful experience for them,” donating their time and talent to help us and underprivileged children. It said Stuart Billing, National General Manager paint, regenerate and refresh the site was great giving something back to so we can help more people next year. – Road Network Management.” them for the services they provide,” Well done to Alison and the team involved said Alison Devereaux, Commercial for your community spirit! n Manager Infrastructure Services.
12 Issue 7 September-October 2016 OUR DOWNER Downer Cadet How to order Goes To Rio! stationery and printed Scott Martlew, a Quantity-Surveyor Cadet in our Christchurch material office, has had a last minute call up to represent New Zealand in para-canoe at the Paralympic Games in Rio. Need printed collateral With just over a week until the Paralympics kick-off, Scott, who competed in the World or promotional material? Championships earlier this year, initially missed the cut for Rio by one hundredth of a second. McDonald Printing Group The recent withdrawal of the Russian team resulted in Scott getting a call up and fortunately he was ready to compete. is our contracted supplier “I’ve kept training all the way through and sort of hoped that I may get a chance to compete,” in Australia, and the online he said. “I am incredibly excited about my selection to compete at the Rio 2016 Paralympic portal is a quick and easy Games. This is the first time para-canoe has been included in the Paralympic Games way to order items. competition schedule and it is great to be a part of history. I could not be more thrilled to have my dream of representing New Zealand become a reality in Rio.” Our Christchurch office has doubled as an art gallery with a display of the Spirit of Gold Collection portraits. The portrait collection features 12 athletes, including Scott, and is touring the country as part of the Paralympics New Zealand (PNZ) Spirit of Gold campaign in the run up to Rio 2016. “It’s a great feeling to be able to have the Paralympics New Zealand Spirit of Gold campaign come to Downer’s Christchurch office. Downer, and especially the Christchurch team, have been a big part of my journey and have helped me enormously over the years, so it’s awesome to be able to show off these amazing paintings to my colleagues. “Each painting represents the athlete’s own journey of hard work and success in their sport - that’s why I selected my location for the paintings to be in the Christchurch office, as a way I can give back to my colleagues and friends to know they have been a part of my journey.” Your order is shipped to your nominated The Rio 2016 Paralympic Games run from 7-18 September. n address and the cost charged directly to your cost centre or PO number. Easy! Use this portal for items such as: ■■ Printed stationery – business cards, envelopes, letterheads ■■ Newsletters, booklets and publications ■■ Capability brochures and Zero Harm collateral ■■ Banners and posters ■■ Merchandise for marketing The portal can be accessed via our Intranet site or directly at www.mcdonaldprinting.com/ downergroup/ n Have you got a story idea? Know how we can make Downer News better? Send your suggestions to: Corporate.Affairs@downergroup.com 87kg of carbon (CO2 ) were neutralised using Bite Visual Communications Group for this project. www.bitevisual.com.au ĞƌƚŶŽ͘>ϮͬϬϬϭϰ͘ϮϬϭϬ
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