North South Bypass Tunnel Investor Briefing. Andy Summers, Chief Executive, UGL Infrastructure 26 th March 2009

Transcription

1 North South Bypass Tunnel Investor Briefing Andy Summers, Chief Executive, UGL Infrastructure 26 th March 2009

2 UGL Infrastructure Overview Leading provider of construction, engineering and maintenance services in three core sectors: water, power and transport UGL HY09 EBIT by division ($m) UGL Services 32.9 UGL Infrastructure 34.9 Bias toward alliance-style commercial structures and long-term capital spending programs Strong market position in Australia and New Zealand and steady expansion in Asia and North America More than 2,000 directly employed staff UGL Resources 31.3 EBIT comparison EBIT ($m) UGL Rail FY06 FY07 FY08 UGL Infrastructure UGL 2

3 UGL Infrastructure Other Major Projects Water Melbourne Water clean water alliance Melbourne Water waste-water alliance PSP alliance, Sydney SewerFix alliance, Sydney Tamworth waster-water treatment plant Cairns Cleaner Seas alliance UGL Infrastructure s order book was $2.8bn at 31December This excludes the Airport Link alliance announced 24th February UGL Infrastructure order book 31 December 2008 Power TransGrid substation upgrade program, NSW Transpower transmission line construction, New Zealand Contact Energy gas turbine installation, New Zealand ATCO Energy transmission program, Canada Transport TrackStar Alliance Synergy Alliance Major projects $478m 17% Small projects & maintenance $359m 13% Alliances $2,000m 70% 3

4 UGL Infrastructure Strategy Update Australia UGL active in lobbying government for fresh thinking on project funding North American infrastructure Of considerable interest if further lowrisk market opportunities occur Entry to market has occurred through ATCO Electric contract UGL Unicco management involved in scoping work to identify opportunities Opportunities for cost savings through increased cooperation with UGL Rail and UGL Resources Overhead transmission line project 4

5 Transport & Systems Division Improved contribution from the Transport & Systems division in HY09 reflected ongoing risk and process improvements This followed review after problems at Perth Metro and Revesby in HY08 led a minimal EBIT contribution from Transport & Systems Ongoing bias for alliance-style contracts for complex or large projects in the transport sector North South Bypass Tunnel (NSBT) and Airport Link contracts both under risksharing structures TrackStar alliance, Queensland 5

6 NSBT Overview Part of Brisbane s transport plan and first critical stage of TransApex vision to reduce deficiencies in Brisbane road network Will connect north-south traffic under Brisbane between Woolloongabba and Bowen Hills Overall road connection is 5.8km long, including a dual twin-lane tunnel approximately 4.8km long Has been renamed the CLEM7 in honour of Clem Jones, the longest-serving Lord Mayor of the City of Brisbane Illustration of proposed road interchange at CLEM7 Northern Portal Construction managed by Leighton Contractors, Baulderstone Hornibrook/Bilfinger Berger joint venture 6

7 NSBT UGL Scope Design, supply, installation, commissioning and maintenance of mechanical, electrical and controls systems: Ventilation High-voltage electrical Low-voltage and lighting Fire and life safety systems Pumps and drainage Signage Integrated traffic systems Supervisory control and data acquisition (SCADA) CCTV and security Control centre CLEM7 smoke duct damper installation 7

8 NSBT Technical Challenges Early commencement of mechanical and electrical installation while tunnel excavation is still in progress Commencement of early pre-commissioning and a shortened duration of integrated commissioning Integration of CLEM7 into Brisbane City Council and Queensland Department of Main Roads control systems network Remote management of CLEM7 systems from Queensland Department of Transport traffic management centre Engineering drawing of elevated work platform design Design format and implementation of a comprehensive material resourcing program in SAP 8

9 NSBT Partner & Contract Arrangements Original design and construct contract was a lump-sum contract for $206m, announced in January 2007 Subsequent negotiations have resulted in: Fixed price contract for $152m covering design, procurement and surface construction works Amendment deed for $54m (including gain and pain-share arrangement) covering installation and commissioning UGL Infrastructure is also entitled to a bonus arrangement subject to early completion 9

10 NSBT Schedule Contract duration 3½ years Contract completion June 2010 Proposed early construction completion December 2009 NSBT project office, South Brisbane 10

11 Airport Link Overview Second major part of the TransApex project to reduce deficiencies in Brisbane s road network Also includes construction of the Northern Busway between Herston and Kedron Predominantly an underground toll road, consisting of two tunnels 6km long Links NSBT at Bowen Hills and East-West arterial at Toombal, with on- and off-ramps at Stafford Road, Gympie and Lutwych Road Will be Australia s longest road tunnel Airport Link proposed route 11

12 Airport Link Alliance Scope Design, supply, installation and commissioning of mechanical, electrical and control systems for Airport Link and Northern Busway plus tunnel fitout civil works: Ventilation High-voltage electrical Low-voltage and lighting Fire and life safety systems Pumps and drainage Signage Integrated traffic systems Supervisory control and data acquisition (SCADA) CCTV and security Control centre Inclusion of civil tunnel fit-out (road pavement, smoke ducts, tunnel panelling) recent innovation to further reduce supplier interface issues Typical substation LV switch boards 12

13 Airport Link Technical Challenges Demonstrating compliance with Safety Integrity Level (SIL) requirements. Advanced availability modelling of equipment Design to optimise utilisation of assets Satisfy functional safety requests (SIL) Northern Busway control systems to be integrated into Brisbane Metropolitan Transport Commission Design, format and implementation of an integrated management database and material resource programming system in SAP for alliance works Artist s impression of Bowen Hills ramp 13

14 Airport Link Partner & Contract Arrangements Announced terms of $620m alliance agreement with Thiess John Holland on 24 th February

15 Airport Link Schedule Work commenced August 2008 Contract duration 47 months Contract completion June 2012 Current progress: Design works well under way Commencing procurement Artist s impression of Kedron Brook Busway 15

16 Transport Strengths & Benefits End to end provider of mechanical and electrical engineering services: Minimises number of contractor interfaces Simplifies design and procurement process Prime contractor benefits from efficient and costeffective delivery of design, procurement, installation and commissioning Ease of communication resulting from a single point of contact Intellectual property and expertise: we delivered mechanical and electrical scope on 11 of the last 13 major road and rail tunnel projects in Australia and New Zealand Lead systems integrator on all tunnel and Integrated traffic systems NSBT team 16

17 Conclusion UGL Infrastructure performing well and despite weaker economic conditions worldwide Transport division in good shape and making solid progress on major projects Any questions? North South Bypass Tunnel vent installation 17

18

19 Important Notice This presentation and any oral presentation accompanying it: is not an offer, invitation, inducement or recommendation to purchase or subscribe for any securities in United Group Limited ( United Group ) or to retain any securities currently held; is for information purposes only, is in summary form and does not purport to be complete; is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor, potential investor or any other person. Such persons should consider seeking independent financial advice depending on their specific investment objectives, financial situation or needs when deciding if an investment is appropriate or varying any investment; may contain forward looking statements. Any forward looking statements are not guarantees of future performance. Any forward looking statements have been prepared on the basis of a number of assumptions which may prove to be incorrect or involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of United Group, which may cause actual results, performance or achievements to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. Any forward looking statement reflects views held only as of the date of this presentation. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, United Group does not undertake any obligation to publicly update or revise any of the forward looking statements or any change in events, conditions or circumstances on which any such statement is based. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation and any oral presentation accompanying it. To the maximum extent permitted by law, United Group and its related bodies corporate, and their respective directors, officers, employees, agents and advisers, disclaim and exclude all liability (including, without limitation, any liability arising from fault or negligence) for any loss, damage, claim, demand, cost and expense of whatever nature arising in any way out of or in connection with this presentation and any oral presentation accompanying it, including any error or omission therefrom, or otherwise arising in connection with any reliance by any person on any part of this presentation and any oral presentation accompanying it. 19