Business Review Australia & Asia June 2016

JUNE 2016WWW.BUSINESSREVIEWAUSTRALIA.COM

AUSTRALIAS TOP TELECOMMUNICATIONCOMPANIES

SPECIAL REPORT

TOP 10 AUSTRALIAN FRANCHISES

BUILDING VALUE

WHY CHINA SHOULD BE CONSIDERED AN AUSTRALIAN STARTUP TARGET

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H E L L O A N D W E L C O M E T O the June issue of Business Review Australia & Asia,

Having spent just over a year editing our sister publication African Business Review I am excited to take on a new challenge and showcase the regions interesting and nuanced business environment. This month we take a look at why Australian businesses should consider China as a viable and rewarding start-up target. The workshop of the world can offer a great return on investment if the business plan is carefully executed read on to find out more. We also take a look at Australias top telecommunications companies and explore the factors that have got them to the very top. Last but not least we examine Australias 10 best franchises.From everyone at Business Review Australia & Asia we hope you enjoy reading the magazine and look forward to hearing your views on Twitter via @BizReviewAU.

Nye Longman Editor

[email protected]

IN TH IS ISSUE

3

E D I T O R S C O M M E N T

TECHNOLOGY

34 CyberPower Systems (Oceania Division)

46 True IDC Co.,Ltd

CONSTRUCTION

56 John Holland Group

70 South Australian Government Forward

80 Infrastructure in Indonesia

92 Parklands Project by Grocon

104 Unique Urban Built

114 Gateway WA

EDUCATION

128 University of Wollongong

144 Deakin University

160 Griffith University

174 Oracle

MINING

186 MACA

COMPANY PROFILES

FEATURES

CONTENTS

6 FinanceWhy China Should be Considered an Australian Startup Target

14 Top 10Best Australian Franchises

26 TechnologyAustralias Top Telecommunications Companies

4 J u n e 2 0 1 6

56John Holland Group

46 92True IDC Co.,Ltd

Parklands Project by Grocon

5

128

186

University of Wollongong

MACA

F INANCE

W R I T T E N BY: A L I C E YO U N G

AUSTRALIAN STARTUP TARGET

Why China should be considered an

AUSTRALIAN STARTUP TARGET

Why China should be considered an

THERE WAS A time when people thought anyone suggesting opening

a business in China was in cahoots

with a government-run program.

Fast-forward to today, and the

idea of starting a business venture

inside the mainland Asian giant is

now considered both practical and

necessary for any kind of international

presence in the Pacific business

theatre. Make no mistake, the Chinese

government never stopped being

involved in its markets, they have

just taken a far more proactive role

versus a regulatory one, which has

in turn opened up a number of vast

opportunities for international and

Pacific businesses to work in.

8 J u n e 2 0 1 6

F INANCE

GOVERNMENT SUBSIDIESIt is no surprise that the large number

of sub-markets in China are primarily

focused on bringing business,

resources, and trade activity to their

region to stimulate their local supply

and demand elements. In this regard,

the government plays a traditional

subsidy role to help jump-start as

well as incubate new business.

Interestingly, and of particular

attention to Australian companies

looking to start a presence, these

subsidised start programs are open

to both domestic and new foreign

technology players as well as those

who can create new ways to utilise

existing Chinese product lines. In

9

short, both Chinese and foreign

players are eligible for subsidy

for market entry. That said, these

programs dont exist in every area of

Chinas economy. One has to look

for the right industry and sometimes

geographical area to find these.

The best way to start is to first

make a foray into contact with the

local government of the geographical

region that your business might want

to set up shop in. This will put you

in place with the right officials from

the start who can then usher your

company into place within the right

market and with the right players for

support. The Chinese are well aware

of the benefits of capital investment

and business start-up, seeing their

side of the picture as one of job

creation, increased wealth in the

immediate local area with greater

payrolls, and a larger manufacturing

base. The start-up support/subsidy

details are not going to be publicly

detailed, such as on a website page.

1 0 J u n e 2 0 1 6

F INANCE

Central Business District in Beijing, China

B U S I N E S S R E V I E W A U S T R A L I A & A S I A

Instead, these opportunities are found

through the local officials who open

the gateway into such programs.

Alternatively, if you dont feel you have

enough confidence working directly

with the local government, a company

should then leverage Australian

government resources to make

connections and network for market

entry as well. These home offices

will often be connected in advance

with their Chinese counterparts and

can help create a conducive path

for start-up entry and investment in

the mainland.

SPECIFIC MARKET TARGETSFor market-specific opportunities new

ventures still have a number of areas

open to them that are clearly in the

birth phase of the business cycle. That

promises both lots of new possibilities

as well as a lot of challenges for first-

time players. One of the key aspects

an Australian player should decide

early is whether its going to be a

manufacturer, a business to business

player, or a direct retailer to Chinese

markets. Some players try to be both,

but its a highly complex position to

be in, essentially running two different

1 1

businesses in China at the same time.

The education market is a high-

demand area for retail services.

Chinese culture has been focused on

the family for thousands of years. As a

result, educational resources that give

a child an advantage in learning and

training are going to attract interest.

Of course parents want to see their

children do better than they did. But in

a country where most people rely on

a retirement from their own savings,

their children also become the income

source that takes care of them in

their later years as well. Successful

children obviously mean a successful

THE TECH INDUSTRY CONTINUES TO RELY ON CHINA FOR MANUFACTURING, BUT THE POPULATION IS ALSO BECOMING A BIG RETAIL BASE AS WELL FOR THE SAME GOODS

retirement. Ergo, education is like

gold to many at the retail level. This

is augmented by how competitive

the educational system is in China

for entry into the right school. Again,

tutoring and education services meet

a large demand.

The medical support market is

another booming area. China is

a country with one of the largest

populations in the world, and one

that is ageing. As a result, it has a

huge audience that needs and wants

services from the health care industry.

Advances in modern medicine are well

understood by the Chinese, and they

want their share of longer life as well.

Medical device makers and suppliers,

as well medical service providers are

both seeing big market potentials,

both to consumers and to other

businesses. And the elderly care area

continues to grow the fastest with the

growing aged population in China.

Farming and agriculture are a

mainstay of Chinas infrastructure,

providing the food that feeds and

supports the countrys 1.3 billion

people. Chinas government and

agricultural industry continue to look

for ways to make farming produce

more with the same or less, increasing

efficiencies, and improving rates

of harvesting through automation.

Industrial equipment providers,

genetics, and food supply players are

going to see a lot of discussion and

interest in their products and services,

which is likely to increase over the next

few years.

With one quarter of the country

open to the ocean, oceanic and

aqua technology are becoming a

priority. Potable and drinkable water

1 2 J u n e 2 0 1 6

Business District of Hong Kong

F INANCE

1 3

B U S I N E S S R E V I E W A U S T R A L I A

is precious in China and growing

in demand due to burgeoning

populations. Many of the current

water systems have not kept up with

the fast rate of growth in the country.

Further, businesses that are water-

dependent have poisoned a number of

water sources or consume significant

supply regularly.

So equipment and services that

produce new, increased supplies of

fresh drinking water are going to win

big in the mainland nationwide.

Finally, the tech industry continues

to rely on China for manufacturing, but

the population is also becoming a big

retail base as well for the same goods.

In fact, one estimate pegs Chinas

demand for tech as growing by 20

percent annually.

This includes aspects of

e-commerce as well. And, anyone who

has a business way to clean up Chinas

pollution problem on land, water and

air, will be set up for job security for at

least the next 30 years if not longer.

Business District of Hong Kong

TOP 10

1 5

Written by: Business Review staff

AUSTRALIAN FRANCHISES

Franchises, particularly restaurants, are very popular in Australia: the Franchise Council of Australia estimates that there are more franchise systems per capita than any other country, with 1,160 franchise brands and over 79,000 franchise units for a population of 23 million. While you can walk down a busy street

in downtown Brisbane or Sydney and find a McDonalds, Subway, or other American staple the top-performing franchises are those with native origins as 86 percent of the most successful franchises are Australian. Here are the top 10 most promising franchises from down under.

WHILE AUSTRALIA IS NO STRANGER TO MULTI-NATIONAL FRANCHISES, THE NATIONS HOME-GROWN BUSINESSES STILL

DOMINATE IN THE MAJORITY OF SECTORS

TOP 10

16 J u n e 2 0 1 6

POOLWERX1

FOR MORE INFORMATION >>

TOP 10

16 J u n e 2 0 1 6

POOLWERX1


TOP 10

Founded in the Brisbane area with over

24 years of brand history, Poolwerx

is Australias most successful pool

cleaning franchise. With over 100

Australian franchises made up of

almost 100 retail stores and over 300

mobile service vans, Poolwerx also

has plans to open 300 stores in the

Sunbelt region of America. Founder

John OBrien has commented on

this massive opportunity: The US

pool industry is a disorganised

market. Its where Australia was 10

to 15 years ago, he says. Generally,

the market in America is a single

guy with a pole and a truck. Its not

time-efficient or reliable. Poolwerx

employs a modern automatic cleaning

system that is checked once a

month by a technician, taking the

hassle out of pool maintenance.

BATTERY WORLD


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Celebrating 20 years: Battery

World Australia has 94 stores

nationally and has launched a

new era of store innovation and

expansion (planning to open over

10 new stores per year for the next

5 years across Australia). In 2016,

Battery World has extended the

national coverage with the addition

of new stores in Pakenham (VIC),

Southbank (VIC), Parafield (SA),

Cardiff (NSW), Kirrawee (NSW)

and soon to open Waurn Ponds

(VIC) and Chatswood (NSW)

and Rocklea (QLD). Rocklea will

be the first in the country to trial

a drive through service while

Southbank became the first CBD

flagship store with plans to open

CBD stores across the country.

The Foodco Group owns the popular cafe franchises Muffin Break, Dreamy Donuts, and Jamaica Blue, and the franchisor is best known for its training programs and superior employee organisation with accolades from the Franchise Counsel of Australia. The Counsels general manager Kym de Britt stated: They have an excellent set-up for trainees.

FOODCO

1 8 J u n e 2 0 1 6

3 Theyre well organised and have good, working systems, having cited that typically franchisees are prone to disorganisation. So franchisees receive two weeks of intense training and so do all employees ranging from counter people to office managers. 128 Jamaica Blue stores have been opened in southeast Asia as well as 275 Muffin Break outlets across Australia, New Zealand, the UK, and India.


TOP 10

COFFEE CLUB

Coffeehouse franchise Coffee Club has been enjoying vast growth with over 270 stores in Australia and Asia-Pacific region. What makes Coffee Club stand out from other coffee chains is their Six Star Consistency Program, that compares how well all the stores perform so that the franchisees can have a way to benchmark their revenues and operating costs, as well as brand engagement and other key metrics to ensure a successful franchise and healthy competition among franchisees.The six stars stand for progress report, business development review, mystery shopping, comparative growth, sales model and product alignment. Joint Chief Executive Dominic Gallo says: Its a simple system, but by documenting each benchmark, it ensures improvements across the network.


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2 0 J u n e 2 0 1 6

Voted Best Mexican in Australia in the Lifestyle Channels I Love Food Awards Mad Mex Fresh Mexican Grill is a staple in Australian fast-casual franchises. Since Mexican food and fast-casual chains are two of the fastest-growing retail categories in Australia, a Mad Mex franchise is a wise investment. With a trend towards healthier fare that fast-casual restaurants are more likely to offer than traditional Mexican restaurants, founder Clovis Young told Hospitality Magazine: We probably helped to change the

perception of Mexican food from greasy, unhealthy party food that youd only eat once a quarter if you couldnt avoid it, to something you would happily have three times a week and feel good about because it is that much healthier. The quality is there. An estimated 10 stores open every year, with its most aggressive growth being 35 stores in a 16-month period. The founders also chalk their success up to not having to answer to shareholders, as Mad Mex is privately owned by two people.


MAD MEX5

TOP 10

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Gutter-Vac is Australias premier gutter cleaning service with 45 locations - it aims to make homeowners lives easier by offering gutter cleaning and other home services like power-washing with their own proprietary equipment and patented ThunderVac Technology Process. While growth has not been as rapid as other franchise

sectors due to Australias fairly mild climate, Gutter-Vac has managed to position itself as the nations top gutter cleaning service when there wasnt even a gutter cleaning category in the Australian Yellow Pages and no such business existed before. The franchise is looking to expand into the UK and Europe where there is more demand for gutter cleaning services in their deciduous climates.


6 GUTTER-VAC

2 2 J u n e 2 0 1 6

Gelatissimo, a hand-crafted gelato franchise found throughout Australia as well as Southern Asia and the Middle East, is a promising investment as joint executives Marco and Dominic Lopresti have come up with innovative ways to keep product quality up and logistics costs down. Logistics are always more complicated when dealing with a temperature-sensitive product like fresh gelato: major ice cream makers use factories and cold transport systems that rely on preservatives, but a fresh product that customers are willing to pay more for is harder to transport. The Lopresti brothers fashioned a kit production system employing raw ingredients and gelato machines to cut down on waste and give franchisees an edge over other gelato shops. What better way to do so than have fresh gelato made in-house?


GELATISSIMO7

TOP 10

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Since 80 percent of Australias population lives in the countrys five largest cities, its no surprise that street food franchises have become a viable investment. Rolld specialises in traditional hawker-style Vietnamese street cart fare like rice paper rolls, pho, Vietnamese salads and banh mi sandwiches. The founder, Bao Hoang, was looking for an

alternative to sushi for a meal out and decided that his mums traditional Vietnamese recipes were just what the public was looking for. He wound up being right as Rolld went from 15 new stores in 2013 to 28 in 2014, and expects to have 100 by 2016. Hoang says, People were clearly looking for an alternative [to sushi and burgers], and with ours still being a fresh, fast and healthy option, we are very well received.

GELATISSIMO

8 ROLLD

2 4 J u n e 2 0 1 6

Skinnys Grill is a hot new franchise that is looking to corner the market on healthy fast food, particularly for customers following low carb diets. The franchise also offers gluten-free, vegan, and vegetarian options as these four groups of customers often have their needs and wants ignored by other food chains. CEO and founder James McGovern has recognised the demand for healthy prepared

SKINNYS GRILL9 food and realises the huge upside potential. Were targeting a

mass market, says McGovern. Young families, mums and bubs, and the health (conscious) market as well. Skinnys Grill owns the intellectual property for its low-carb recipes which will make it harder for competitors to attempt replicating them, and also offers fund assistance to new franchisees. Twenty new franchises are expected to open in New South Wales alone in the next year.


TOP 10

25


Bakers Delight was established in Melbourne in 1980 and is a household name in Australia with its signature Cheesymite Scroll. The bakery became a chain in 1988 when the founders came to own 15 bakeries by then and decided to expand into other parts of Australia as well as New Zealand and Canada. Thousands of Cheesymite Scrolls later, Bakers Delight has won Food Retailer of the Year as well as the Australian Franchise System of the Year award several times and was named one of the

Top 500 Retailers awards. There are over 600 stores worldwide and a Bakers Delight franchise carries the brand recognition and excellent baked goods that will ensure a


10 BAKERS DELIGHT

W R I T T E N BY: BU S I N E S S R E V I E W S TA F F

Business Review Australia explores the exciting and ever-changing world of telcos

TELECOMMUNICATIONS COMPANIES

AUSTRALIAS TOP

TECHNOLOGY

W R I T T E N BY: BU S I N E S S R E V I E W S TA F F

Business Review Australia explores the exciting and ever-changing world of telcos

TELECOMMUNICATIONS COMPANIES

AUSTRALIAS TOP

DISCLAIMER: In trying to determine the five best telecom companies

in Australia, there can be some

discussion and disagreement about

the criteria used to make these

choices. You can evaluate and rank

these companies by size, profits, how

many people they serve, how well they

market their services, as well as their

reputation. Yet, many of those things

can change rapidly. A new leader

can decide a companys future lies in

a different direction, so profits drop

while they focus on infrastructure, then

they spike upwards as that investment

and leadership paid off. As of now, the

five top companies are:

2 8 J u n e 2 0 1 6

TECHNOLOGY


2 9

As well as one of the best,

AAPT is also one of the largest

telecommunications companies in

the country. A merger a few years

ago with TPG increased its share

in the Australian market, as well as

giving it access to more inter-capital

fiber network. This has increased

its involvement in both metropolitan

and international network which has

make AAPT one of the top telecom

companies in the country.

AAPT is led by David Yuile who

serves as the CEO. He took the

position after serving as the chief

operating officer at the company,

and he was the leader of a network

agreement with PowerTel which

re-engineering and simplification of

their service. The company employs

750 people and is located in Sydney

and they specialise in fixed telephony,

mobile telephony, internet access,

leased lines, and data transmission.

AAPT5

The leadership of the M2 Group

consists of Geoff Horth who serves

as CEO, Richard Correll who serves

as the Chief Financial Officer, and

John Allerton who serves as the

Commercial Director. In 2015 the M2

Group employed 3,300 and has an

annual revenue of $1.2 billion.

After M2 merged with Vocus, the

company was valued at $3.9 billion. In

December 2015, M2 had $55.1 million

in profits over the previous six months

and Vocus had profits of $27.4 million.

The company now has 471,000

broadband subscribers, which is good

enough to make the top five of this list,

but it is number four in the number of

subscribers, and far behind number

three based upon the number of

subscribers to its services.

Often referred to as M2 Group, the

company provides more traditional

services to its customers, as

well as providing next generation

telecommunication products and

services. M2 Group focuses on

consumer, business, and wholesale

telecommunication and is a major

player in Australia of all three

market types.

Although M2 Group sells to all three

groups, its sales team is focused

largely on small to medium sized

businesses, as well as families and

individuals with an intention of

growing by providing services

with smaller contracts.

3 0 J u n e 2 0 1 6

TECHNOLOGY

M2 Telecom4

B U S I N E S S R E V I E W A U S T R A L I A

Just as its name indicates, this

company was made after a merger

of Vodafone Australia and Hutchison

Australia. Two of the better known

brands prior to their merger, and

now one of the biggest and well

respected brands in the country.

From this merged company come

Crazy Johns and Vodafone, two

of the most noteworthy brands for

electronics and mobile devices.

The company has a reputation and

a history of being on the cutting edge

of the telecommunications business,

as Hutchison was the first company to

introduce a 3G telecommunications

3 1

network in Australia back in 2003.

They continue to be known for

striving to find new ideas to improve

their brand.

The CEO of Vodafone Hutchison

Australia is Inaki Berroeta. The

company employs over 4,500 people

and its headquarters is in North

Sydney. Vodafone Hutchison Australia

has 5.4 million customers involved in

different telecommunications services.

In 2015, the company reported their

revenue had grown $1.77 billion which

was an increase of 2.9 percent from

the previous year. It also reported that

more and more customers are taking

the companys higher end plan which

is adding to their profits and some

speculate it could also be a sign of a

robust economy.

Vodafone Hutchison Australia3

3 2 J u n e 2 0 1 6

Singtel Optus Pvt Ltd is a subsidiary

of Singtel, which is a Singaporean

telecommunications company. Optus

has its own network which it uses to

provide its services so Optus does not

need to lease lines and poles, and it

has a greater control of its future.

Optus has a large presence in

the telecommunications market in

Australia with wholesale services and

a large footprint in the retail market.

It also provides broadband, dial-up,

and wireless internet to its customers.

Optus is led by Chairman Paul

OSullivan, and CEO designate

Allen Lew.

The total revenue through March

of 2013 is $8.93 billion, and its net

income through March 2013 was $764

million. The company employs more

than 8,700 people.

Optus has 9.38 million customers

and recently saw its subscribers

drop 54,000 people as competition

ramped up from other companies

like Telstra and Vodafone Hutchison

Australia. Telstra is however growing

in subscribers who are post-paid

by adding 102,000 compared to

Vodafone Hutchison Australia which

grow by 32,000 at the same time.

Optus2

TECHNOLOGY

The largest telecommunications

company in Australia is Telstra.

Telstra has been involved in building

and operating telecommunications

networks in Australia and some

outside of the company. It is also

involved in marketing mobile, voice,

data, pay television, and other

entertainment products and services.

Telstras CEO is Andy Penn and

the CFO is Warwick Bray, both

respected in the industry for their

steady leadership and willingness to

embrace new technology. The revenue

as of 2014 was $26.3 billion, the

profit as of 2014 was 4.3 billion, while

the total assets were $39.36 billion.

Telstra employs nearly 32,000 people.

The headquarters of the company is

located in Melbourne.

Telstra estimates that they provide

16.9 million people mobile service,

they provide 7.2 million people

with fixed voice services, and they

provide 3.3 million with broadband.

The company began by providing

telegraph services in 1854 and they

now provide 4G network services.

The telecommunications industry in

Australia is robust. Many companies

see growth which is important in

providing services to the population of

the country and keeping many people

gainfully employed.

Telstra1

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A power surge or interruption can have devastating effectsand power protection product suppliers provide the most important lines of defense against these critical issues. CyberPower Systems is a top tier global power protection vendor supplying uninterrupted

power supply (UPS) units, power distribution units (PDUs), surge suppressors, automatic transfer switches, power management software, preventative maintenance, other related services and more to thousands of clients around the world. Since 2009, CyberPower Systems has been finding success

CYBERPOWER SYSTEMS

Taipei Headquaters

Office Building

M A N U F A C T U R I N G

in supporting clients across Australia, New Zealand, and the Pacific Islands through its Oceania division.

We have a strategic approach, in regards to having an in-depth understanding of our customers and their problems relating to the power industry, said Brad

Andrews, managing director of CyberPower Systems Oceania. We look at how we can provide solutions to the market that are not only addressing these issues, but are looking at the future and adapting to the changes in power technologies to provide best of breed solutions.

w w w. c y b e r p o w e r. c o m 3 7

CYBERPOWER SYSTEMS

2015 CyberPower HQ Visit

NORTH TEXAS MUNICIPAL WATER DISTRICT

KEEPING UP WITH THE MARCH OF PROGRES STechnology is a swiftly evolving field, and a business like CyberPower Systems must stay ahead of the latest innovations in order to keep pace with its clients requirements. To achieve this, the company takes great care to keep research and development a top priority.

Weve got a dedicated R&D department in Taipei, Taiwan, with over a hundred engineers focused on the research and development

of software, engineering, hardware, safety, electronics and quality control, said Andrews. With this commitment, we are bringing the highest quality products with the most competitive specifications to market.

With its new office and experience centre on the way in Brisbane, CyberPower Systems will be able to invite its returning and prospective clients to immerse themselves in the possibilities and logistics of power technologies on the cutting edge.

3 8 J u n e 2 0 1 6

ASI Solutions National sales conference

NORTH TEXAS MUNICIPAL WATER DISTRICT M A N U F A C T U R I N G


Along with a new office, with a boardroom and training facilities for our partners, we will also have a customer experience centre where we will demonstrate our productsincluding UPS systems, power distribution and also the automatic transfer switchesin a live environment with a virtual setup, said Andrews, explaining the value of clients being able to experience this technology at work up close.

The virtual environment displays to them an idea of how they would set these units up on site, what applications they would be used for, and how they would address a clients problems, he added. It is also to show an interface of our software, so that clients can actually see how comprehensive our software is and what its different features can do.

NEW TRENDS IN TECHNOLOGY AND POWER D ISTR IBUTIONThe role that CyberPower Systems and its products play in the technology sector give the company a unique perspective on upcoming

IT trends. This insight allows CyberPower to tailor its own focus to anticipate and cater to the varied needs of its clients.

What we see at the moment is quite a migration to the cloud, said Andrews. This means that a lot of on-premise equipment will start to go to a data centredata centres are a very big emerging growth market in our industry right now.

From corporations to small

home offices, businesses are relying increasingly on data centres for critical information and daily operations. CyberPower Systems has responded to this trend with its latest launch of large 3-phase UPS systems designed specifically for data centres as their capacities increase and their power protection requirements grow more demanding. Were seeing some excellent surges in growth with these new systems within the data centre space, said Andrews.

GOING GREEN IN THE IT SECTORMore and more companies are becoming conscious of green practices and energy saving technologies, said Andrews. More than 50 per cent of consumers consider greenness as a factor when selecting a supplier to partner with, according to a recent research paper from CyberPower Systems, while a full 80 per cent of executives cite green IT as an important subject for their organizations.

Energy Correction Options provides world class technologies and exceptional technical support.

With our suppliers - CyberPower, ERICO & Sinexel - we have the solution to your Power Quality Issue.

Contact Justin Hamilton / Justin Harris

T: 1300 735 526 | F: 1300 728 740 | E: [email protected] | W: www.ecoptions.com.au

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YOUR POWER QUALITY PARTNER

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C O N S T R U C T I O N

COMPANY NAME

As a vendor that takes pride in its green IT status, CyberPower Systems is fully committed to helping its clients reach their own efficiency and sustainability goals. This is achieved through such practices as research into more sustainable lithium-ion battery options and its patented GreenPower UPS Technology,

4 2 J u n e 2 0 1 6

As utility power is normal over 88 per cent of the time, the GreenPower UPS operates primarily in its cost-reducing bypass mode. As a result, users will enjoy significant energy cost savings with the adoption of GreenPower UPS Technology Brad Andrews, managing director of CyberPower Systems Oceania

M A N U F A C T U R I N GCOMPANY NAME

an advanced system designed to create high performing data centre efficiencies while delivering clients up to 75 per cent savings on their energy costs compared to conventional UPS models.

The GreenPower UPS efficiently bypasses the transformer when utility power is normal, reads CyberPowers introduction to the new technology. As utility power is normal over 88 per cent of the time, the GreenPower UPS operates primarily in its cost-reducing bypass

mode. As a result, users will enjoy significant

energy cost savings with the adoption of GreenPower UPS

Technology. CyberPower Systems also

pays attention to sustainability throughout the life cycle of its products, offering clients discounts and one-stop-shop solutions for replacing UPS systems and batteries while disposing of older models in a local and eco-conscious way. Other green features we have are packaging


MARKET PRESENCE IN OVER 100 COUNTRIES

strong relationships with its client base year after year. I think we have a very thorough understanding of our customers needs, said Andrews. We are a smart dynamic adaptive company that listens to its customers and then delivers on its promiseswe do that very well.

and components that take into account best principles and practices in green IT, and making sure that wherever we can were using materials that are going to be renewable and environmentally friendly, said Andrews. All the way through our manufacturing process, we have a keen eye on the green side of IT and manufacturing.

CYBERPOWER SYSTEMS: PRESENT AND FUTUREThe traits that set CyberPower Systems apart from its competition are the same as those that help CyberPower Systems maintain

4 4 J u n e 2 0 1 6

CYBERPOWER SYSTEMS

We are a smart dynamic adaptive company that listens to its customers and then delivers on its promiseswe do that very well. Brad Andrews, managing director of CyberPower Systems Oceania

M A N U F A C T U R I N G


Those traits also promise to help carry CyberPower Systems forward into the future as it continues to build on its portfolio, ramp up marketing to bring its support to new regions, and develop its network of trusted partners to provide true end-to-end turnkey solutions to its clients.

Were in an ever changing market, said Andrews. Its very exciting times now.

Company Information

N A M E

CyberPower Systems (Oceania Division)

I N D U S T RY

Technology

P R O D U C T S

UPS systems, PDU, ATS and total power protection products manufacturing

E S TA B L I S H E D

1997

M A N A G E M E N T

Managing Director at CyberPower Systems Oceania: Brad Andrews Regional Sales Manager NSW / ACT: Shannon Dowden

CYBERPOWER SYSTEMS

Written by: Nell Walker Produced by: James Pepper

ASIAN expansion

Our key differentiation

factor is not technology; were

not Google, and were never going to be the

Facebook of the world. Were going to build

talent using Asian diversity. I call myself

a change agent thats what I do. My expertise is

transformation

4 7

True IDC, an off-shoot of Ascend Group, is Thailands leading international data centre and cloud services solution provider, priding itself on bringing global partners within reach of Southeast

4 8 J u n e 2 0 1 6

TRUE IDC CO. ,LTD

T rue IDC, an off-shoot of Ascend Group, is Thailands leading international data centre and cloud services solution provider, priding itself on bringing global partners within reach of Southeast Asian businesses. Established in April 2003, the company now boasts multiple centres in Bangkok, across Thailand, and other countries in Southeast Asia. Already providing platforms for Amazon Web Services, Google Chromebook, Microsoft Office365, Huawei Simply Cloud, Beedoo, True IDC Share, and Avaya Teleconference Solutions, True IDC aims to be the leading digital economy enabler in the ASEAN Economic Community.

Supparat Sivapetchranat Singhara na Ayudhaya is Chief

Product and Technology Officer at True IDC. Singhara na Ayudhaya had previously been the first Thai to take on a global role at Thomson Reuters, and during that time, he was accountable for many international teams within the company. Singhara na Ayudhaya considers himself a hybrid, speaking multiple languages, and in working across various groups, he discovered the true business extent of global.

Global is no longer New York, its no longer London, its no longer Tokyo, he says. Its Asia Shanghai, Dubai, Delhi. A significant portion of the Thomson Reuters code deployed globally was based in Bangkok; a lot of people outside the company dont know that. Theres untapped talent here. I

T E C H N O L O G Y

www.ascendcorp .com 4 9

Supparat Sivapetchranat Singhara na Ayudhaya, Chief Product and Technology Officer for True IDC, describes how the company has cornered the local market with an Asia-focussed business model

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For more information, visit: http://www.avaya.com/apac/services/portfolios/private-cloud-services/

Avaya Selected Vendor - True IDCIn collaboration with Avaya, True IDC launches Video Conferencing as-a-Service (VCaaS) offering comprehensive service solutions in high definition (HD) with low bandwidth usage; compatible with smart phones and tablets; enhancing enterprise efficiency and cost savings.

AVAYA PROFESSIONAL CLOUD SERVICES

TRUE IDC CO. ,LTD

but as Singhara na Ayudhaya has the benefit of a global perspective, the company chose to merge the responsibilities.

Targeting the marketIn addition to the Enterprise segment, True IDC develops within the local market by aiming for SMEs. He states, We are targeting emerging markets, like Thailand, Cambodia and Myanmar. SMEs are the main drivers of the economy

saw new opportunities with this knowledge, so I made the decision to move from this multinational corporation to Ascend, he notes.

Singhara na Ayudhayas role now is based in developing products for the local market in Thailand and Asia, increasing the speed of the technology, and evolving infrastructure platforms. The role is unique in that most companies would separate the product and technology development,

The key for us is our leadership team, and the leadership team needs to navigate an ever-changing business climate Supparat

Sivapetchranat Singhara na Ayudhaya, Chief Product and Technology Officer for True IDC

T E C H N O L O G Y


there. A lot of players try to capture them, but its difficult. Thailand is in a unique position in that its SMEs have a high adoption rate of mobile phones. It has a population of 60-70 million, and only 30 million of those are online, yet there are around 80 million mobile phones being used across the country. This gives us great opportunities. Were in a unique position in being the only cloud service provider thats also a telecom. Even the big cloud players like Amazon lack connectivity

capability, thus empowering a mutual partnership between True IDC and Amazon, Google,

The key for us is our leadership team, and the leadership team needs to navigate an ever-changing business climate Thanasorn Jaidee, General Manager, True IDC (Left), Supparat Sivapetchranat Singhara Na Ayuthaya

5 2 J u n e 2 0 1 6

TRUE IDC CO. ,LTD

Microsoft, and Huawei. We have the connectivity and the existing customer base to expand upon.

True IDC enjoys the advantages of having the required services in place already, ensuring that market shares are also well-positioned, despite the fact that larger companies may have more advanced technology. However, these companies do not necessarily view ASEAN as a key market in the same way. True IDC is making advancements with strategic partnerships that will drive more business to Thailand.

Skill and diversity In any emerging market, Singhara na Ayudhaya says, finding the required skill level is a challenge. He adds, The experience is out there. The skills are out there. The knowledge is out there. The key thing for us is attracting the right talent that can complete globally as the digital economy is borderless thats part of the reason I was brought here. Were looking at people with global talent who can understand the local market but communicate globally. The key for

us is our leadership team, and the leadership team needs to navigate an ever-changing business climate.

Singhara na Ayudhaya states that while Asian culture is respective to a very command-and-control approach, Western culture is more about engagement, and so True IDC tries to leverage a culture of various comforts, ensuring that what the young company lacks in experience, it makes up for by achieving its goals more quickly.

One such project this mindset has allowed is the Simply Cloud Public Cloud Thailands first cloud service which allows users to manage their own data at a reasonable price. The cloud will enable a bigger market in Thailand, and in Cambodia, says Singhara na Ayudhaya.

We are also launching the first cloud software marketplace platform tailored for SMEs. The marketplace will be the regions first platform connecting start-ups and SMEs. Its key because the adoption rate of cloud services is not necessarily just going to be

T E C H N O L O G Y


Just two years ago, True IDC was only in Bangkok; now, it is based in Myanmar and Cambodia as well as Vietnam, and the company is exploring other markets such as Indonesia

Diversity is about connecting the change together to generate opportunities, and to make intelligent bets in the region Supparat

Sivapetchranat Singhara na Ayudhaya

the infrastructure in the service space, although theres a higher mobile penetration in Asia than in Europe or the US. Our play is that we provide a scalable platform that connects emerging start-ups with SMEs in the region. Capturing the market is fundamentally a KPI, as well as being able to offer the right services on tap.

True IDC has entered into a joint venture with SUPERNAP, a tier four data centre. Next year, Thailands own branch of SUPERNAP will open, which is the first outside the US. Singhara na Ayudhaya points out, Now what this does is lay the foundation. It guarantees 100 percent uptime data centre service within the region and will support growth across Cambodia, Myanmar, Vietnam, and of course Thailand. From a connectivity standpoint, it puts us in a strategic position. We have to be reliable, and to be reliable we have to guarantee SUPERNAP 100 percent uptime asset running. Banks have already signed up to these services.

ExpansionJust two years ago, True IDC was only in Bangkok; now, it is based in Myanmar and Cambodia as well as Vietnam, and the company is exploring other markets such as Indonesia. Each country has its own multi-market strategy depending on local demand. In Myanmar, political instability has made

5 4 J u n e 2 0 1 6

TRUE IDC CO. ,LTD

Just two years ago, True IDC was only in Bangkok; now, it is based in Myanmar and Cambodia as well as Vietnam, and the company is exploring other markets such as Indonesia

people hesitant about data centre and cloud business, but it is a good place to invest in. Cambodia lacks the business traction of Thailand but is maturing all the time, and in Vietnam, the focus is on the marketplace rather than the infrastructure.

The key lesson is how do you get the ability to connect the dots, Singhara na Ayudhaya says. Our key differentiation factor is not technology; were not Google, and were never going to be the

Facebook of the world. Were going to build talent using Asian diversity. I call myself a change agent thats what I do. My expertise is transformation. We make things happen. For us to compete, its about diversity. We provide a very insightful perspective. Technology is about change, but diversity is about connecting the change together to generate opportunities, and to make intelligent bets in the region is something I am personally driving towards.

T E C H N O L O G Y


BUILDING VALUE

With industry leading capabilities and the support of a new parent company, John Holland

is poised for an exciting new futureWritten by: Sasha Orman | Produced by: Vince Kielty

5 7

In Australia, New Zealand and South East Asia, John Holland has become synonymous with quality engineering and contracting. For more than 65 years, the company has been dedicated to delivering exceptional results in the building, engineering, and rail sectors.

GROW THJohn Holland and its new owner, China Communications Construction Company International Holding Limited (CCCI), have set the ambitious target of doubling the size of the Australian company within five years. With a new business model already in place, strengthened by a new Development & Investments arm, the company is moving in an exciting new direction.

CEO, Glenn Palin, says John Holland had a proud history of delivering major infrastructure for Australia: That will continue to be an extremely important focus for us, but we are also moving in a new and exciting direction. We now have a business that can provide value across the entire

infrastructure and property cycle.Palin said the business would

focus on: Beinganintegratedsolution

for governments. Furtherdevelopingvertically

integrated businesses to provide a total solution service. Proactivelygenerating

JOHN HOLLAND GROUP

5 8 J u n e 2 0 1 6


w w w. j o h n h o l l a n d . c o m . a u 5 9

business growth through Development & Investment opportunities. Leveragingtheglobal

technology links and supply chain ability with CCCC.

As further evidence of their commitment to international growth, John Holland has recently

opened a South East Asian office in Singapore.

We have just opened a South East Asian Office, located in Singapore, testament to our on the ground project experience, along with a promising pipeline of work and excellent potential for growth, says Palin.

JOHN HOLLAND GROUP E N G I N E E R I N G A N D C O N T R A C T I N G

Can handle it.

QUEENSLAND NEW SOUTH WALES AUSTRALIAN CAPITAL TERRITORY VICTORIA WESTERN AUSTRALIA NORTHERN TERRITORY NEW ZEALAND

Fredon is proud to be associated with the following John Holland projects:

1 Parramatta Square, Western Sydney University

Abercrombie Precinct, University of Sydney

Creative Industries Precinct, Queensland University of Technology

Perth Childrens Hospital

NEW F INANCIAL STRENGTHThe launch of a new Development & Investments Group (D&I) is a critical step change for the future of the business. D&I will drive new business opportunities in property development and infrastructure, public-private partnerships (PPP) and concessions as well as exploring M&A prospects.

John Holland already has considerable experience with PPP, working on a number of successful projects such as the Southbank

Education and Training Precinct in Queensland, Sydney Metro and, more recently, Melbournes Ravenhall Prison redevelopment project.

John Holland has performed numerous roles on these projects, from design and construction to operations and maintenance. They have also invested equity in projects such Sydneys Lane Cove Tunnel and EastLink in Victoria and the newly awarded Canberras Capital Metro project.

Our D&I Team will work hand in


Can handle it.

QUEENSLAND NEW SOUTH WALES AUSTRALIAN CAPITAL TERRITORY VICTORIA WESTERN AUSTRALIA NORTHERN TERRITORY NEW ZEALAND

Fredon is proud to be associated with the following John Holland projects:

1 Parramatta Square, Western Sydney University

Abercrombie Precinct, University of Sydney

Creative Industries Precinct, Queensland University of Technology

Perth Childrens Hospital

Employees: 900+ Established: 1968Industry: Electrical, Data & Communications; Heating, Ventilation & Air-conditioning; Security & Technology. Services: Construction, Services & Special Projects, Maintenance, Engineering Design, Prefabrication, Integration Ongoing Projects: Health, Defence, Infrastructure, Transport, Community Facilities, Education, Manufacturing, Mining & ResourcesAccreditations: Quality ISO 9001, Safety AS/NZS 4801, Environment ISO 14001 (Global-Mark)

Website: www. fredon.com.au

SUPPLIER PROFILEFREDON

E N G I N E E R I N G A N D C O N T R A C T I N G

Experiencing consistent growth since its inception in 2010, Monford is now a leading integrated construction service provider of civil contracting, building construction and asset maintenance services for the oil and gas, resources and infrastructure sector nationally.

BBuilt from the ground up and led by hands-on Managing Director Declan White, Monfords success stems from its Integrity, quality and streamlined processes without the bureaucracy.

BBeyond the generic eciency, quality, safety, environmentally responsible statements most companies promise, Monford has rigorous processes, strategies and training and education to genuinely deliver projects on time, within budget, safely and sustainably.

MONFORDGROUP.COM

SydneySuite 32 Level 5 Nexus Norwest

4 Columbia CourtBaulkham Hills, NSW 2153

Ph: 02 8315 7047

Perth77 Coulson Way

Canning Vale, WA 6155Ph: 08 6365 4507

Karratha102 Lambden RoadKarratha, WA 6714Ph: 08 6365 4507

CONTACT US

Email: [email protected]

CIVIL CONTRACTING

BUILDING CONSTRUCTION

ASSET MAINTENANCE

PERSONNEL MANAGEMENT

EQUIPMENT HIRE

hand with our clients, investing and partnering with them to deliver high quality assets that maximise value, Palin says, Our extensive industry experience allows us to support our customers at every stage of the project lifecycle from defining and developing concepts at project conception, to operations and maintenance.

Our objective is to provide value and innovation to Australias infrastructure and property markets.

COLLABOR ATIONWorking together and sharing ideas often leads to the best results. For this reason, John Holland places a high value on collaboration. The company has partnered with the Australian Institute of Building to offer students opportunities for hands-on experience, and is active with several associations including the Australian Constructors Association and the Green Building Council to promote industry-wide progress and growth.



Experiencing consistent growth since its inception in 2010, Monford is now a leading integrated construction service provider of civil contracting, building construction and asset maintenance services for the oil and gas, resources and infrastructure sector nationally.

BBuilt from the ground up and led by hands-on Managing Director Declan White, Monfords success stems from its Integrity, quality and streamlined processes without the bureaucracy.

BBeyond the generic eciency, quality, safety, environmentally responsible statements most companies promise, Monford has rigorous processes, strategies and training and education to genuinely deliver projects on time, within budget, safely and sustainably.

MONFORDGROUP.COM

SydneySuite 32 Level 5 Nexus Norwest

4 Columbia CourtBaulkham Hills, NSW 2153

Ph: 02 8315 7047

Perth77 Coulson Way

Canning Vale, WA 6155Ph: 08 6365 4507

Karratha102 Lambden RoadKarratha, WA 6714Ph: 08 6365 4507

CONTACT US

Email: [email protected]

CIVIL CONTRACTING

BUILDING CONSTRUCTION

ASSET MAINTENANCE

PERSONNEL MANAGEMENT

EQUIPMENT HIRE

Employees: 200 Established: 2010Industry: Infrastructure, Mining, Oil and Gas Services: Bridges, Buildings, Camps, Earthworks, Land Development, Marine, Pipelines, Precast concrete, Rail, Roads, Utilities, Water Infrastructure Ongoing Projects: Wheatstone LNG, Client John Holland, Value $35M; Nammuldi, Value $14M; Perth Airport & Freight Access, Value $11M; Burswood Stadium Rail, Value $8M; Perth Childrens Hospital Value $4M; Abraham Bridge Value $1.45M; Denmark Waste Water Treatment Plant Value $1M

Website: www.monfordgroup.com

SUPPLIER PROFILEMONFORD GROUP

QUALITY ASSURED VEGETATION MANAGEMENT SERVICE

344 Limekilns Rd, Bathurst NSW 2795 | Ph: 02 6334 2544 | Email: [email protected]

www.agilearbor.com.au

Our strong industry reputation is based on 15 years of delivering a quality vegetation

management service safely and professionally throughout inland NSW.

With an outstanding safety record, our friendly team is trained to handle every possible

vegetation management job.

Removal of dangerous trees, woody weeds, shrubs and regrowth

Fire hazard reduction and fire break maintenance

Access road / track maintenance Geo-technical maintenance and

rock grooming Hydro-mulching / seeding Equipment hire

www.eetplus.com.au+61 2 8398 9050 [email protected]

Level 6, 601 Pacic Highway, St Leonards, NSW 2065 FleetPlus Pty Ltd ABN 59 099 217 320

FleetPlus is a leading eet leasing and eet management company in Australia and New Zealand. For businesses both big and small, we specialise in providing vehicle solutions tailored to our customers requirements including:

Operating Leases Fleet Management Novated Leasing Salary Packaging

John Holland also works together with strategic technology partners to improve internal processeslike its web-based Project Pack Web system, to increase mobility and empower employees to be productive from any location and in turn enhance further collaboration with clients.

Were empowering people in IT to connect directly with their business counterparts to understand their needs, said David Banger, CIO for John Holland. Project Pack Web

was developed in collaboration with the business to make sure that it met their requirements while innovating and simplifying existing practices. Our staff members regularly visit projects to experience firsthand the way our services are utilised so we can continually improve the support we provide to the business.

INNOVATIONInnovation is imperative for a business intending to grow, but it is



JOHN HOLLAND GROUP

Our objective is to provide value and innovation to Australias infrastructure

and property markets John Holland CEO, Glenn Palin


E N G I N E E R I N G A N D C O N T R A C T I N GJOHN HOLLAND GROUP

Our objective is to provide value and innovation to Australias infrastructure

and property markets John Holland CEO, Glenn Palin

JOHN HOLLAND GROUP

6 8 J u n e 2 0 1 6

equally important that innovation is pursued with purpose. John Holland has established an Engineering, Technology and Innovation (ETI) function, which will ensure that continuous improvement is business as usual. As such it looks at Design Management Services, construction planning, research & development, and new technologies.

Its primary accountability is to build competitive advantage through engineering excellence, innovation, research and leveraging the breadth and depth of CCCC capabilities, resources and procurement.

The depth and breadth of our service offering, coupled with our internal collaboration model, allows us to effectively and efficiently deliver high quality infrastructure and engineering solutions for our clients, Palin says.

CONCLUS ION AND FUTUREGrowth dominates John Hollands future plans, bolstered by the support of its parent company.

We plan to double the size of John Holland within five years by building on our reputation for excellence and taking advantage of new opportunities, says Palin.

Many of our operating markets



have seen significant change over recent years, particularly in the past 12-18 months. Evaluating these changes, identifying future industry trends, researching new markets and determining the competitive advantages we offer, has also been a vital part of the planning process.

Company Information

N A M E

John Holland Group

I N D U S T RY

Engineering and contracting

H E A D Q U A RT E R S

Melbourne, Australia

E X E C U T I V E

CEO: Glenn Palin

JOHN HOLLAND GROUP

SA GOVERNMENTS RECORD INVESTMENT

TO KEEP BUILDING SOUTH AUSTRALIA Construction will begin on almost $2.5 billion of major infrastructure projects in South Australia this year creating thousands of jobs. Together with continuing projects more than $6 billion of major infrastructure

projects are underway or about to start.

7 17 1

SA GOVERNMENTS RECORD INVESTMENT

TO KEEP BUILDING SOUTH AUSTRALIA Construction will begin on almost $2.5 billion of major infrastructure projects in South Australia this year creating thousands of jobs. Together with continuing projects more than $6 billion of major infrastructure

projects are underway or about to start.

South Australia has undergone a massive transformation over the past decade with more than $8 billion invested in public buildings and transport infrastructure.

The citys Riverbank Precinct has been a focal point of this record investment, with a range of sporting, health, arts and entertainment

infrastructure emerging, underway or planned.

The award-winning $535 million Adelaide Oval redevelopment is arguably the gem in the Riverbank crown - a shining example of how modernisation can mesh with preservation of unique heritage.

And the tens of thousands of football and cricket fans heading to

7 2 J u n e 2 0 1 6

SOUTH AUSTRALIAN GOVERNMENT

Adelaide has been ranked the most cost competitive city in Australia

the oval almost weekly have brought a new sense of vibrancy to the city.

Most cross the river via the new $40 million Riverbank Bridge which connects the oval to the citys bustling restaurant and hotel precinct, as well as the Adelaide Convention Centre, which is undergoing at $397 million rejuvenation, and SkyCitys

Adelaide Casino, which recently received development approval for a $300 million expansion, including a new boutique hotel overlooking the river.

The view from the Riverbank Bridge takes in the $2.1 billion Royal Adelaide Hospital, which is nearing completion, the recently opened $200 million South Australian Health


w w w. p re m i e r. s a . g o v. a u 7 3


The redevelopment of this precinct owes its success in part to a focus on building the transport networks which service the area. The $30 million tramline extension from Victoria Square to the citys west has helped generate the urban uplift, linking these precinct sites with the Adelaide Railway Station, the Entertainment Centre and the evolving University of South Australias City West campus.

On the back of the success of the

7 4 J u n e 2 0 1 6

and Medical Research Institute and the University of Adelaides $125 million Medical and Nursing School which is currently being constructed.

The $40 million Festival Plaza project will create a Federation Square-style open space, further developing links within the Riverbank Precinct, while Walker Corporations $430 million office building is also proposed for the area.

tram extension, a network of trams throughout the city AdeLINK is proposed.

The State Government has just announced a $4m business case will be developed, with the aim of encouraging both the Federal Government and local councils to partner in delivering this ambitious project.

The AdeLINK tram network is part of an integrated approach to the transport networks vital to a sprawling city such as Adelaide, which is why the Government has also been focused on upgrading our three most popular transport services.

A $291 million rail electrification and extension to Seaford opened in February 2014, increasing patronage from the sprawling southern suburbs by almost 80 percent.

Recently an $85.5 million, 620-metre extension of the electrified Tonsley line, connecting to the Flinders Medical Centre and Flinders University was announced, with a tender call expected soon.

The $152 million electrification

of the Gawler line to the northern suburbs is on the books to start in the 2017/18 financial year.

In the meantime work has started on the $160 million O-Bahn City Access Project, which will see a tunnel constructed under Adelaides nationally heritage-listed parklands, vastly improving travel times and reliability for the citys most popular public transport network - the O-Bahn guided busway while also greatly improving road traffic flows.

Improvement the movement of traffic across the vast city of Adelaide is the primary purpose of



the States other major transport infrastructure project - the North South Corridor.

Already the $812 million South Road superway, the $512 million Northern Expressway, $118 million Gallipoli Underpass and $30 million Glenelg tram overpass have eased pressure on this vital freight and commuter corridor.

An $896 million upgrade between the River Torrens and Torrens Road is under construction and within

months work will begin on the $620 million Darlington Upgrade and $985 million Northern Connector.

A joint State and Federal commitment to upgrade the North-South Corridor upgraded in 10 years, creating a 78-kilometre non-stop motorway linking growing urban areas in the citys northern and southern suburbs, as well as providing crucial freight connections between key regions such as the Mid North, Barossa Valley, Fleurieu



economy industries such as car manufacturing to new industries such as advanced manufacturing, and with the associated pressure on jobs, a key focus for the Government has been to maximise the benefits of infrastructure investment for local industries and workers.

The Industry Participation Policy gives tenderers who prioritise South Australian businesses and workers

7 8 J u n e 2 0 1 6

Peninsula and the Port of Adelaide, via the $270 million Port River Expressway.

This is in addition to other works in the Port Adelaide area such as the $300 million Techport shipbuilding facility at Osborne, $126 million opening road and rail bridges over the Port River and $45 million deepening of the Outer Harbor channel.

As a state transitioning from old


South Australia secured the nations biggest ever defence project


a better chance of winning government contracts. The policy does not exclude interstate or

indeed international companies and consortia from bidding for local projects, but does convey an expectation that where possible goods and labour will be sourced locally.

All of South Australias major infrastructure projects now operate under this Industry Participation Policy, along with other requirements for successful tenderers to employ apprentices, Aboriginal workers and people from disadvantaged backgrounds.

Company Information

N A M E

South Australian

Government

I N D U S T RY

Government Public

Infrastructure

H E A D Q U A RT E R S

Adelaide, South Australia

M A N A G E M E N T

South Australian

Transport and

Infrastructure Minister:

Stephen Mullighan

Chief Executive, South

Australian Department of

Planning, Transport and

Infrastructure:

Michael Deegan

C O N S T R U C T I O NSOUTH AUSTRALIAN GOVERNMENT

South Australia secured the nations biggest ever defence project

Written by: Tom Wadlow Produced by: Richard Deane

Infrastructure in Indonesia: A once in a century opportunity

INFRASTRUCTURE IN INDONESIA

8 2 J u n e 2 0 1 6

Indonesia is a sleeping giant. With 252 million inhabitants and a Gross Domestic Product of around US$890 billion, it is the largest economy in Southeast Asia and 30th largest in the world.

Domestic consumption accounts for more than 55 percent of the countrys GDP, a factor which has sheltered it from the global economic crisis and facilitated a steady growth rate of 5.8 percent over the past 10 years. Political stability and a burgeoning middle class of 74 million, many of which are under 30, is also an attractive proposition for would-be investors.

Indonesia also houses an abundance of natural resources. It is the worlds largest producer and exporter of crude palm oil, the second largest producer of cocoa and tin, the second largest

Why major construction projects are needed to drive socio-economic development and harness the entrepreneurial spirit of 20 million surplus workers

producer of coal and the fourth largest exporter of natural gas.

Steady, however, is not enough. Despite the already formidable statistics, voices inside the country are calling for a massive ramp up in productivity, especially in the construction of infrastructure. Such an enormous workforce and bountiful supplies of valuable commodities, it is said, are underutilised.

A report published in 2014 by Indonesias Centre for Public Policy Transformation, The Economic Choices Facing the Next President, outlines a once in century opportunity for Joko Widodo, now in his second year as head of state. There are two choices - either continue with business as usual and continue with five percent growth, or embark


on robust reform to generate 10 percent growth and four times the number of good new jobs.

Peter Fagan has been in and out of Indonesia for the past 20 years and is now Vice President of Southeast Asia Operations for Hill International, experts in identifying, managing and mitigating large infrastructure projects across the world. Responsible for scoping out opportunities in the country, he has spoken to a tremendous number of people in public and private enterprise, and agrees that today could mark a watershed moment.

Yes, I do think this is a once in a century opportunity, Fagan said. There are more than 20 million under or unemployed workers with a strong entrepreneurial spirit, partly born by necessity as there is no social safety net system in Indonesia.

Constructing cost effective business Shifting under or unemployed workers from generally unproductive agricultural and informal trades to more productive manufacturing jobs has been identified as key to awakening the sleeping giant. Reducing the cost of labour to manufacturing firms while increasing the incomes of workers may appear contradictory, but this is where a drastic need for infrastructure arises.

Fagan explained: The cost of doing business in Indonesia is relatively high and it is not because of high salaries. It is because of poor infrastructure and the cost of the time it takes for things to move.

www.h i l l in t l .com 8 3

There are more than 20 million under or unemployed workers with a strong entrepreneurial spirit, partly born by necessity as there is no social safety net system in Indonesia

Peter Fagan,

Vice President of

Southeast Asia

Operations, Hill

International


The delay of getting into port and missing the ship is one example. Something like 10 percent of freight trucked to port actually misses the ship because the trucks just cant get there on time. Roads are chock-a-block all day and all night.

The Indonesian ports themselves, Fagan added, are also in need of upgrading. Oil imports from the Middle East have to route via Singapore onto smaller ships in order to dock in Indonesia, adding significant cost. Navigating the 13,000-plus islands is also a logistical challenge, with current infrastructure not aiding the process as much as it could. Difficulties such as these and the subsequent increase in the cost of doing business has resulted in major companies moving their custom to the likes of Myanmar.

Its not just roads and ports that will help businesses but also a significant investment into water resources and water treatment. Fagan said. In Jakarta, as in many cities in Indonesia, you cant drink the water out of the pipe. Its so heavily polluted.

Power supplies are also critically short and thats not important just for the civilian population but also for business. It is big cost on business having to provide their own electricity when the governments power supply is interrupted, which can happen frequently outside the capital city.

8 4 J u n e 2 0 1 6


Driving development Improving the quality of life for Indonesians lies at the heart of the Centre for Public Policy Transformations research.

The only reason to build infrastructure is to support the people of Indonesia and what do the people of Indonesia want? Fagan asked. They want a job.

Fagan highlighted the diligence and resourcefulness of Indonesian people by referring to a recently-revoked piece of Jakarta legislation which prevented cars from travelling at peak times unless they had three or more occupants. This had driven unemployed people to ride in underpopulated cars in exchange for money.

This is the only way some people were able

8 6 J u n e 2 0 1 6


to buy food and I think this goes to the heart of it, Fagan added. All Indonesian people want is the opportunity for employment, and improving infrastructure will create an environment where businesses will want operate and employ more people.

Political roadblocks Despite the best intentions of President Widodo, the political system in which he operates is holding back some important infrastructure projects.

The 120km high speed rail line linking Jakarta and Bandung, due to be completed by a Chinese-Indonesian business partnership, is a clear example of a project being held up in the political machine. Having had the seal of approval from Jokowi, just 5km has been released for construction due to intervention from the countrys Ministry of Transport.

Nobody really knows the rationale behind why its on hold, Fagan said. What is reported in the media is that environmental studies and land acquisition are yet to be completed.

This leads into another problem - that of acquiring land, the budget for which is a fraction of what is needed to get several large infrastructure projects off the ground.

Indeed, the Economic Choices report states a need for a tenfold increase in government spending on infrastructure, from 0.6 to 6.5 percent of national income by 2019. It recommends scrapping the fuel subsidy, a move which has already been made, as a means to freeing up capital. Much greater tax reform will also be needed.

Despite bureaucratic hold ups there are projects making it through the pipeline. A timely third terminal at Jakarta airport is nearing completion, and will greatly ease pressure on the transport hub which is currently operating at 250 percent of capacity.

Countering corruption A well-established culture of corruption is another tricky barrier that the country is trying to overcome. Generations of government officials who could not survive without the income



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corruption bought has led to its entrenchment in the political system of the day.

Fagan commented: The government is making some progress with its anti-corruption unit, the KPK. They are investigating publically and putting people before the courts. People are starting to be punished for corruption and there are major cases almost every week. Certainly two or three cases every month are being reported in the press and Im sure theres a lot else thats going on.

Another policy helping to improve transparency and make business easier is the one door policy. Several departments that a proposal may have required approval from now operate under one roof, cutting out unnecessary bureaucratic layers.

It is an area in which Hill International specialises, having completed 10,000 projects and managed half a trillion dollars of project work over its 40 years. Overcoming approval barriers and ensuring as smooth a process as possible is a central pillar of what it does, and Fagan recognises the progress being made in Indonesia.

Peter Fagan has vast experience working in Indonesia and across the world, helping to manage some of the largest infrastructure projects. This includes the ongoing Doha Expressway programme in Qatar, involving more than 30 smaller projects and investment of $35 billion. In Indonesia, Fagan and Hill International delivered a workshop to the Ministry of Finance, drawing on company expertise from London and Hong Kong to advise the department on how to get important projects off the ground. Fagan, having graduated with a construction degree, is now in charge of preparing Hill for the undertaking of new projects in Indonesia and elsewhere in Southeast Asia.

Peter Fagan, Vice President, Southeast Asia Operations



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Things that were taking three to six months for approvals are now reportedly happening within days to weeks, he said. The most fruitful opportunity for us will be with foreign companies which are doing business here and with Indonesian companies that already operate in overseas locations because they understand compliance to legislation like the UK Bribery Act.

OptimismIndonesias middle class, a group which is set to double to 150 million by 2020, is key to pressing the demand for goods and services which will stimulate investment and provide work for the millions of under and unemployed.

Young, tech-savvy and interested in international brands, international surveys have shown Indonesians are receptive to advertising and eager to try new ideas. It is already the worlds second largest Facebook market and fifth largest on Twitter.

If the current government presses ahead with the recommendations set out by the Economic Choices paper, the country could experience growth double that of the present day.

Fagan concluded: I admire the drive of the President. His attempts to encourage and lead are admirable and there are a lot of foreign companies from Asia, Europe and the USA that are very enthusiastic and want to find opportunities to invest.


I admire the drive of the President. His attempts to encourage and lead are admirable and there are a lot of foreign companies from Asia, Europe and the USA that are very enthusiastic and want to find opportunities to invest Peter Fagan,

Vice President of

Southeast Asia

Operations, Hill

International

A DESIGN REVOLUTION

FOR THE GOLD COAST

The Grocon Parklands Project promises an advent of sustainable and accessible design for Southport and Queensland

Written by: Sasha Orman Produced by: Tom Venturo

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A DESIGN REVOLUTION

FOR THE GOLD COAST

The Grocon Parklands Project promises an advent of sustainable and accessible design for Southport and Queensland

Written by: Sasha Orman Produced by: Tom Venturo

9 4

A s the largest privately-owned development, construction and real estate investment business in Australia, Grocon has built a reputation for delivering complex large-scale development projects that strike a balance between form and function. On the Gold Coast, Grocon is in the midst of one of its

largest development projects yet: the Parklands Project in Southport, Queensland.

We are proud to be investing, developing and constructing the Parklands Project into a vibrant mixed use community, which will be one of the most significant urban renewal developments ever undertaken on the Gold Coast, said

PARKLANDS PROJECT BY GROCON

Village Heart Overview

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Steven Grimes, Grocon Parklands Project General Manager.

The Grocon Parklands Project is a key part of the Gold Coast Health and Knowledge Precinct, a $5 billion development across 200 hectares in Southport. Already home to Griffith University the cutting-edge Gold Coast University Hospital, and Gold Coast Private Hospital.

Grocons contribution to the district will be a mixed-use village featuring 1,252 one, two and three-bedroom dwellings (18 apartment towers and 82 townhouses), a regional Shopping Centre with 18 retail and dining outlets with a full line supermarket, and seven hectares of public park space around a Village Heart.

C O N S T R U C T I O NPARKLANDS PROJECT BY GROCON

Everything we do is driven by our core values of Safety, Sustainability, Community and Innovation, said Grimes. The Parklands Project provides a showcase of bringing our values to life.

A SUSTA INABLE APPROACHOur aim is simple: to leave our planet in a better place than we found it, said Grimes. That means every project always contributes to a greener future.

The Parklands Project is no exception, with a design and

vision incorporating industry-wide best practices for sustainability, community engagement, and environmental protection from construction to completion.

To encourage ecosystem rehabilitation, Grocon is reinstating natural landscaping and connections to adjoining forests within the seven-hectare public park at the center of the Parklands development. Grocon also weaves sustainability and energy efficiency concepts into its apartment and townhouses designs, from towers built to enhance natural sunlight

www.park landspro ject .com.au 9 7

OUR AIM IS SIMPLE: TO LEAVE OUR PLANET IN A BETTER PLACE THAN WE FOUND IT. THAT MEANS EVERY PROJECT ALWAYS CONTRIBUTES TO A GREENER FUTURE.

Steven Grimes, Grocon Parklands Project General Manager


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and natural cooling breezes to LED lighting fixtures and smart appliances in every home. Furthermore, Parklands homes are built to meet Livable Housing Design guidelines for more inclusive and accessible living spaces.

These efforts have not gone unnoticed. The EnviroDevelopment scheme, produced by the Urban Development Institute of Australia (UDIA), certified the Parklands Projects sustainable development status across five categories: sustainability of ecosystems,

waste, energy, materials, water and community. Meanwhile Grocon has partnered with the Queensland Government to achieve a Livable Housing Silver standard for Parklands townhouses and Livable Housing Gold for its apartments.

A VALUED WORKFORCEAn extensive undertaking like the Parklands Project requires an equally extensive staffthe Parklands Project will have 1,000 workers on site at the peak of construction, with a total of nearly

Steven Grimes (Grocon Parklands Project General Manager), Dean Bruker (yourtown consultant) Grant Beckett (Grocon Constructors Executive Project Manager)


www.park landspro ject .com.au 9 9

Otis is the worlds largest manufacturer of elevators, escalators and moving walkways. For architects and contractors, developers and homeowners, Otis is the worlds leading people mover.

Environmentally friendly Gen2 elevators set the new standard for performance, reliability, design flexibility and comfort while reducing costs and energy usage throughout their life cycle.

Otis Elevator Company Pty. Ltd.149-155 Milton Street, Ashfield NSW 2131, Australia

Phone: +61 2 8338 2700 | Fax: +61 8338 2730 | www.otis.com

Revolutionary flat-belt technology enables a more compact, energy efficient machine, freeing up valuable building space and reduce operating costs.

Thanks to its flexible belts, the Gen2 system is more compact and more efficient.

The Way to Green gets greener Energy conserving ReGenTM drives make Gen2 systems up to 75 percent more energy efficient than conventional systems with non-regenerative drives.

10,000 involved throughout the design and construction process. Grocon recognises that each individual is crucial to the success of the project, and strives to create a workplace where employees and subcontractors can feel valued and empowered.

We want our people to feel they can make a difference to our business and to the world around them, said Grimes. We believe that providing an enjoyable working environment is how we can best help our people achieve

their personal and career goals, and so thats exactly what we do. We maintain a positive work place through providing an ethics and values-based organisation, open two-way communication and a cultural and behavioural framework of capability. We are committed to encouraging personal development, recognising good performance, valuing teamwork and fostering an environment of equal opportunity.

Grocon also values the safety of its workforce, using methods and materials like polymer formwork

Overview of Village Heart from North

from Dincel Construction System to reduce the hazardous tasks workers are faced with every day. With an industry leading OHS policy certified to AS 4801:2001, the company strives to maintain a work site that is not only positive but also 100 per cent LTI injury-free.

Our teams actively participate in site based safety interactions where by staff interact directly with the workforce to encourage and foster a positive safety culture, Grimes added. But to us, safety is also about more than zero

harmits also about providing wellbeing programmes that achieve better health outcomes for all of our employees. We drive a safety culture to lead the construction industry.

A LASTING LEGACYThe Parklands Project by Grocon has a bright and colorful future ahead of itGrocon is currently on track to complete construction by the end of 2017, at which time the complex will be leased to the Gold Coast 2018 Commonwealth


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Finn Jones (UDIA Gold Coast Branch President) and Steven Grimes (Parklands Project General Manager) at the award of the Parklands Project 5 leaf EnviroDevelopment accreditation

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PARKLANDS PROJECT BY GROCON

Games Corporation (GOLDOC). The residences within the Parklands Project will serve as the Gold Coast 2018 Commonwealth Games Village, housing 6,600 athletes and officials while drawing attention to the project and the Gold Coasts potential as a leader in sustainable design.

We are proud to be able to deliver Parklands Project as a sustainable and vibrant mixed-use community

for the Gold Coast Health and Knowledge Precinct. said Grimes. The village heart and residential village are staged to become iconic international landmarks in sustainable design.

After the Commonwealth Games, Grocon will then go back in to transition the Parklands to its final form as a mixed use residential community, outfitting the ap

Business Review Australia & Asia June 2016

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