international
construction
november 2014
6
WORLDNEWS
SWITZERLAND
Holcim has named
Urs Bleisch andAlainBourguignon to
spearhead the divestment of assets
from itself and Lafarge, ahead of the
two companies’merger. They have
been given the task evaluating different
options for divestment, including
separating assets out in a single
package, either in Europe orworldwide.
ITALY
Construction equipment sales
in Italy rose+12% in the first nine
months of 2014, according to trade
associationUNACEA. The number of
machines sold totalled4,479 units
over the first ninemonths of 2014,
comprising4,403 earthmoving
machines – a rise of +11% over the
same period last year – and76 road
buildingmachines –up+17%.
UKRAINE
The construction industry
inUkraine is forecast to fall -18%
in2014, having contracted by
almost -12% last year, according to
research company PMR. Residential
construction, however, is expected
to continue to increase in2014,
regardless of the crisis in eastern
Ukraine and its impact on the economy.
EUROPE
Cement producers’
associationCembureau has
responded to a EuropeanCommission
(EC) consultation on sustainable
construction. The organisation has said
there is a need for funding to research
the environmental effects surrounding
the use of industrial materials –which
it believed needed to be examined
across the entire lifetime of a building.
US
Demand for telematics from the
NorthAmerican construction equipment
rental market is expected to increase
between+13% and+15% over the
next five years, according to a report
by research company Frost &Sullivan.
It said increasing awareness of the
benefits of telematics technologywould
fuel a surge in themarket.
UK
Bechtel has announced it will
combine its civil andmost of its power
business units to create theBechtel
Infrastructure global business unit.
Toby Seay, president of Bechtel’s
power business, will become president
of the Infrastructure business, which
will be headquartered in London, UK
andwill be one of the company’s
largest divisions.
HIGHLIGHTS
EGYPT
Suez expansion
contracts awarded
US$ 2 billion of dredgingwork released just two
months after project announced
T
he Suez Canal Authority has awarded two contracts worthmore than
US$2billion linked to the project to increase the shipping capacity of
Egypt’s SuezCanal.
The scheme will see a new 50 km channel dug parallel to the existing
canal to allow ships to travel in both directions onwhat has hitherto been a
single lane route. Sections of the existing channel will also be deepened and
widened.
A consortium of Boskalis, Van Oord, NMDC and Jan de Nul has won
a US$ 1.5 billion contract, with each partner entitled to an equal share of
US$ 375 million each. This covers construction of the parallel route and
somework on the existing canal.
Boskalis said themajority of the dredging for the canal expansionwill be
executedwith17 cutter suctiondredgers.The project is due to start this year
and reach completion in 2015.
In addition, a joint venture between DEME’s Dredging International
(75%) andGreat LakesDredge&DockCompany (25%) has been awarded
the US$ 540million contract to deepen and widen the western branch of
the Suez Canal at Great Bitter Lake, Deversoir Reach and Kabreet Reach.
The scopeofwork includes thewidening anddeepening theSuezCanal over
a length of 25 km.
Plans to expand the SuezCanal were announced inAugust.
US
Skills
shortage
A survey of US contractors has
found that 83% are finding it hard
to get skilled employees.
The study from the Associated
General Contractors of America
(AGC) found that vacancies for
carpenters, equipment operators
and labourers were proving hard to
fill following a prolonged industry
downturn.
As a result, association officials
have called for the development
of new career and technical skills
courses to be made available, as
well as making improvements
in working conditions to meet a
growing demand for construction
services.
Ken Simonson, chief economist
for the AGC, said, “As the
survey results make clear, many
construction firms across the
country are having a hard time
filling available positions.”
CHILE
Contract
cancelled
A part of theMetro 6 consortium’s
contract for the Santiago Metro
in Chile has been cancelled by the
client over construction delays.
The scheme, worth US$ 160
million, was ledby Salini Impregilo
and involved the construction of
six new stations and 7.6 km of
excavation work on Line 6 of the
network.
Once complete, the sectionwould
have served 870,000 residents in
eight districts as part of a scheme
which has been scheduled to
include 108 stations andfive lines.
Work began last year, but the
client confirmed it has cancelled
the contract, citing failure to meet
technical terms of the agreement
and setbacks to its timetable.
Salini Impregilo described the
cancellation as “totally unjustified.”
The company said it had
experienced delays because of
archaeological restrictions and
geological conditions on the route.
These had caused unavoidable
stoppages in addition to measures
that were required to ensure the
safety of a workforce of 1,100
employees.
The Italian contractor added that
the issue is being examined by an
independent adjudicator.
VENEZUELA
Missed
payment
Holcim says it has not received a
US$ 97.5 million compensation
payment form the Venezuelan
government which was due on
September 10.
The payment relates to the
forced nationalisation of Holcim’s
Venezuelan business in August
2008.
Followingthe launchofarbitration
proceedings in March 2009, the
Venezuelan government had agreed
in September 2010 to payUS$ 650
million in compensation over the
case.
This comprised an initial sum of
US$ 260 million and four annual
instalments of US$ 97.5 million.
It is the final instalment which has
not been received. Holcim said it is
in contact with the relevant parties
inVenezuela toaddress the situation
and, if necessary,will take legal steps
to collect the amounts due.
