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2013 Issue 2
The Leighton Asia, India and Offshore Magazine
Cover Story
Continuous safety training
This issue’s featured core
value is:
de a safe a Provi y work nd place th heal a ng i ng cu le en
ly
ive etit mp co
community
Encourage in no technologica vation l lea a d e rsh nd ip Core Value
integrity and fairness
1
with Act
We will … · Reward safe practices · Be tough on policy · Provide continuous safety training · Implement safety management plans Promote employee health Be co m me r cia l
f the eds o e n e e th s i n og c Re
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MD’s foresight Ian Edwards Managing Director Leighton Asia, India and Offshore
The safety of our people is paramount. Across every one of our projects I am always pleased to see the efforts of our supervisors and workers to ensure everyone’s safety. To uphold our core value of providing a safe and healthy workplace we remain focused on our safety culture, which means rewarding safe practices, being tough on policy, providing continuous safety training, implementing safety management plans and promoting employee health. Our safety culture requires accountability for safety from every single one of us. Whatever your role and wherever you are located, whether in an office in Jakarta, on a project site in Hong Kong or an offshore barge in Iraq, safety is your personal and direct responsibility. In this edition of INsite I am pleased to be able to share with you how our safety culture continues to grow and how our approach to
safety management has been recognised across our operations. We will also discuss awareness of health and well-being and witness the ways we reward ourselves and celebrate our safety triumphs. I am wholly committed to creating a working environment in which the safety of our people is of absolute priority. It is for all of us to focus on safe working behaviours and not to walk past anything we feel is not right on our projects. Only then will we be true to our values and deliver on a safety culture which will shape our future.
MD’s foresight
2
Contents Cover story
Continuous safety training: scope and strength of Strive for L.I.F.E centres
Page
05
Updates
Updates
AGM: Establishing a solid platform for future profitability Caring Company award Leighton LLC: Top taxpayer number 3 LFM highlights
Page 09
Projects
Projects
Project safety awards Offshore opportunities Building on success Tin Shui Wai Hospital project progress
Page 13 Safety
Focus on fatigue Health and safety within and beyond the workplace Safe work in Singapore Site safety spot Thank you in Laos HSE month at MSJ
Safety
Page 17
Green
Green
LAIO sets its sights on sustainability Record banyan tree relocation Tree planting pursuits
Page 21
People
People
Employee engagement survey Confidence key in professional review Manager as Coach
Page 25
Events
Page 27 Corporate
Living our Code – Leighton Ethics Line Bits and bytes Leighton announces quarterly results
Events
Update and sundown event in Mongolia Leighton Laos lays on the glitz Bai sun marks bright beginnings Hosting Happy Hour Biceps and Triceps triumphant Bowling means business Lessons learned Hong Kong staff Walk for Millions Relay race leaves others run-ragged Striking it lucky
Corporate
re
fsho d Of
a an Indi up Asia,ghton Gro Lei hton Leigmber of the A me
t
duc
e of Con Codsiness Bu r 2012 be
Octo
Page 33
Cover Story
Continuous safety training: scope and strength of Strive for L.I.F.E centres
5
Cover Story
“The up-skilling of our staff and workforce in Hong Kong remains a key strategic focus for our Hong Kong and Macau operations. Having world class training facilities as well as competent and experienced trainers, who are equal to this task, will remain a key driver in achieving the objectives of our Strive for L.I.F.E programme.’’ Dean Cowley Head of HSEQ and Security for Hong Kong and Macau
Leighton Asia, India and Offshore (LAIO) is committed to excellence in Health and Safety practices wherever we operate. Our vision is to provide a world-class programme of Health and Safety related training and for each Business Unit (BU) to establish a dedicated Strive for L.I.F.E Training Centre where the safety training curricula can effectively be delivered. The intention is that the facility and the curricula will not only be at the cutting edge of local industry training, but the benchmark standard for safety training in our areas of operation. In Hong Kong a dedicated 9,000 square foot Knowledge and Skills Training Centre houses a 6,000 square foot mock-up of a live site environment as well as two training classrooms, fully equipped with the latest multi-media technology. From here Advanced Safety Induction Training (ASIT) is provided, using many forms of interactive and dynamic media. The one-day programme consists of a morning session devoted to safety awareness and theory and an afternoon of practical safety training to include: lifting, confined spaces, ladders, working on slopes and unprotected edges, electrical safety, working with slewing /moving equipment, working with scaffold and working at height. It is strictly forbidden for employees, or indeed anybody to work on a Leighton site in Hong Kong without the resulting Certificate in Advanced Safety.
Cover Story
6
The Indonesian operation faces many logistical and infrastructure challenges to effectively develop and transfer knowledge and skills to their workforce across their many projects. The business has adopted unique strategies to overcome these challenges, allowing them to directly employ indigenous workers from remote areas, which supports up-skilling of the local community.
The standalone Hong Kong centre was recently upgraded to incorporate a new mock-up area which simulates the collapse of soil in an excavation along with an enhanced working at height section. Having assessed local training needs our Hong Kong and Macau operation is currently placing an increased focus on awareness surrounding electrical safety. Dean Cowley, Head of HSEQ and Security for Hong Kong and Macau asserted, “The up-skilling of our staff and workforce in Hong Kong remains a key strategic focus for our Hong Kong and Macau operations. Having world class training facilities as well as competent and experienced trainers, who are equal to this task, will remain a key driver in achieving the objectives of our Strive for L.I.F.E programme.’’ Customisation and education Our facilities are customised according to discipline, need and environment. For example, in the Oil and Gas discipline the EPC-2 and EPC-3 teams were the first to establish a state-of-the-art Strive for L.I.F.E Training Centre in India in January 2012. The centre includes specialist Class 1 Risk training including hot works, advanced fire-fighting, confined space and lifting and rigging. Leighton Welspun has recently opened a second centre at the Chenani Nashri Tunnel Project. The project has been subject to unpredictable rock-falls and the centre features a mock-up area that simulates rock-fall occurrences.
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Cover Story
A Learning Management System (LMS) has been developed by the Indonesian operation which cuts across all functional disciplines and has taken the business to an average of 15,000 to 20,000 hours of training per month. Training is delivered through various focused groups, each employing a team of specialists to transfer knowledge and skills. Across the mining projects in Indonesia, the Leighton Education and Training Skills Centre (LETSC) has been deployed to ensure plant maintenance and mechanical skills are built into the business to effectively manage our large equipment fleet. Each project has developed unique interactive learning environments and is successfully delivering new apprentices and building mechanical skills into the industry. Both vocational mine skills training and construction training sit within the management of the Operations Effectiveness Unit (OEU).
Mobile facilities A big challenge the OEU faces is delivering mine operator and construction training in remote parts of Indonesia. In response to this, unique mobile training centres have been developed. Forty-foot sea containers have been converted into mobile training centres equipped with cutting edge simulator technology developing the skills of present and future dozer, grader, excavator and truck operators. Our Indonesian operation is currently looking into the development of similar solutions to meet the rapid mobilisation and skill development needs in the construction industry.
“We understand the importance of providing a effective program of Health and Safety related training for our employees and expect our projects to establish dedicated Strive for L.I.F.E Training facilities where the approved curriculum can be effectively delivered.” Justin Gardiner Head of HSE at the Kuala Lumpur Hub
Occupational Health, Safety and Environmental training is integrated into all training functions. Key to the Indonesian operation’s approach in Health Safety and Environment training is using friendly media to deliver key messages (movies, comics, reader-friendly procedures). This effort is backed up by the delivery of Class 1 Risk focused training packages developed to meet each occupational need and are integrated into every training function within the business.
Offshore alignment In every BU, standalone, project-specific and mobile centres will be utilised as required going forward. Our offshore vessels present a unique environment for the safety education of workers. Here the hands-on, practical training provided must meet the particular and varied nature of our marine-related engineering and infrastructure projects whilst maintaining the consistent strive for L.I.F.E message.
Our Indonesian operation’s approach to learning and development is now a key differentiator for the business.
“We understand the importance of providing a effective program of Health and Safety related training for our employees and expect our projects to establish dedicated Strive for L.I.F.E Training facilities where the approved curriculum can be effectively delivered, “ said Justin Gardiner, Head of HSE at the Kuala Lumpur Hub in Malaysia.
Cover Story
8
Updates shing li b a t s E : M G A rm for o f t la p d li o s a ity future profitabil
lighted the costs. He high ng ci du re d an ed contract t of a centralis establishmen , named ent company mining equipm of Centres of development e th d an o, FleetC . key initiatives Excellence as e a set llence will hous ce Ex of s tre “The Cen at we have mpetencies th of specialist co e source of valu an important as ed is gn co re looking at sence, we are creation. In es easily be d what cannot an st be do e what w in order to r competitors, ou by ed at ic repl ow. ” and how we gr frame where
eral ings’ Annual Gen At Leighton Hold e Chairman, ey on 20 May, th Meeting in Sydn e Board OAM said that th Bob Humphris, g every further improvin was focused on ions, after mpany’s operat aspect of the Co during ion strengthened the Group’s posit 2012. and grow’ ‘stabilise, rebase Continuing the ecutive Tyrwhitt, Chief Ex strategy, Hamish were to hton’s priorities Officer said Leig the balance lity, strengthen improve profitabi ement. on capital manag sheet and focus e net rget a sustainabl The Group will ta ter by working smar margin of 3 to 4% 9
Updates
Group’s ented that the Hamish comm rsity and the our size, dive in s lie th ng stre rtfolio. He reach of our po international iquely placed ighton was un added that Le ny with a full uction compa tr ns co ly on as the ld protect its Asia and it wou ss ro ac t in pr foot the future, the n. Further into strong positio s owing region expand into gr Group would a and Sub East Asia, Indi such as South . Saharan Africa r focus ed to move ou ne e w at th r “It is clea approach to alian-centric from an Austr ills to markets export our sk e w re he w e on ed and where rvices are valu where our se excellence By delivering e. lu va d ad we can sition the e, we can po ag st al ob gl e on th ish silience,” Ham vance and re le re r fo up ro G concluded.
sue 2
INSITE 2013 Is
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and Macau r Hong Kong ou tly en ec R g ted the Carin s been alloca le operation ha out a sizeab for carrying d ar aw y an Comp bility ial Responsi orporate Soc C of nt ou am a ‘Caring nominated as (CSR). It was organisations y non-profit Company’ b g Kong and Chest of Hon ity un m om we The C first time that d. This is the Lt og d ch at W Company. as a Caring ed is gn co re d have been e have soun roves that w p t en m se or ur The end lace in the fo hanisms in p ec m n ve ro p and ng, mmunity givi nteering, co lu vo of s ea ar g for our ent and carin nm ro vi en e th caring for
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employees. il of Kong Counc y The Hong b ed ch un La , the Caring CSS) in 2002 K (H ce vi er Social S ltivate good e aims to cu em ch S y an lding Comp geared to bui enship. It is tiz ci e at or corp inesses between bus s ip sh er tn ar strategic p e create a mor re sector to and the welfa or oss-sect al y. Through cr et ci so ve si cohe op further devel two sectors e th es iti tiv ac eds. mmunity ne ch match co projects whi
Updates
10
Updates : Top Leighton LLC er 3 taxpayer numb
y its National Da golia celebrated on M ay M 10 n O d t was organise is year the even of Taxpayers. Th th ers, and e titude to Taxpay ra G e em th e under th were rewarded rprises for 2012 te en er ay xp ta best e highest availabl ter’ award, the w De h hu ‘K ith w al ongolian Gener ented by the M accolade, pres Taxation. Department of government corporate and More than 100 ards ceremony attended the aw representatives . The esteemed anbaatar Hotel held at the Ula ty Minister of gnitaries: Depu di ed ud cl in ts gues t of eral Departmen issioner of Gen Finance, Comm us oner and vario puty Commissi Taxation, the De orities. of local tax auth representatives
contributions operation’s tax Our Mongolian ing them e ranking, mak have risen up th e country. t tax payer in th the third larges r seven in the nt from numbe Since the asce now sit within th period they on m 12 us io prev ers’ category. op Five Taxpay ‘T ed em te es e th , Leighton ecutive Director Mark Bailey, Ex ceive the ured with to re LLC was hono ok) award Dewter’ (Blue Bo h hu ‘K us io tig pres oner of the puty Commissi De h, C id gj Ji by ent of Taxation. General Departm
11
Updates
named as Best terprises were A total of 92 en ing an award. rises, all receiv Taxpayer Enterp ge of being e added privile th d ha C LL on Leight w alongside fello blic billboards pu on d ye la sp di of which were ry winners, all top five catego an read, “Top rises. The slog rp te en l na tio major na e are reliable e for 2012 – W ris rp te En er ay Taxp taxpayers.” e General Finance and th The Ministry of cal tly assessed lo xation had join Ta of t en rtm Depa x contribution d on their net ta se ba es ris rp te en , on their integrity dget as well as to the state bu haviour. d exemplary be commitment an
sue 2
INSITE 2013 Is
ts LFM highligh
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Updates
12
Project safety awards
Many projects across our operations have received safety awards over the past few months.
Projects
Leighton Welspun’s EPC 2, Power Generation and Distribution Project, has had its approach to Occupational Safety and Health recognised in an awards scheme run by the Royal Society for the Prevention of Accidents (RoSPA). The award is open to organisations of all types and sizes from around the world. In addition to accident records the scheme judges entrants’ overarching health and safety management systems, including practices such as leadership and workforce involvement. In Indonesia the Balikpapan Support Facility and the MSJ Coal Mine Project were awarded the Zero Accident Award by the Ministry of Manpower and
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Projects
Projects
Transmigration, Indonesia on 25 April. The award covered the 91-month period from 1 July 2004 to 31 January 2012 and reflected the absence of accidents and lost time injuries as well as the importance we attach to the safety and wellbeing of our workforce. Our safety efforts were also acknowledged at the Considerate Contractors Awards in Hong Kong. The Central-Wanchai Bypass—Central Interchange Project gained a Gold Award in the public works category, along with a Silver Outstanding Environmental Management and Performance Award. Foreman Wayne Lui took the Best Model Frontline Supervisor Award and Singh Sukdev was Model Worker.
Transit Railway Corporation (MTRC). Safety Week also featured the Innovative Safety Initiative Awards. Judges were highly impressed by the sliding, lifting, collar devised by the SIL (East) 904 Rail Project which received a Silver Award and the mobile hand rails submitted by the Sludge Treatment Facility which received a Bronze Award.
Also in Hong Kong our MTR 903 South Island Line (SIL) project took out the Silver Award for non-public works category with Choi Hok rewarded with the Model Worker Award. Furthermore, our CLP Black Point Power Project took out Silver in the repair, maintenance, alteration and addition category with Chui Yiu Ming rewarded for being the Model Frontline Supervisor and Gurung Dilip Kumar as Model Worker. Recently, during the Hong Kong Construction Safety Week, co-organised by the Development Bureau and Construction Industry Council, the 904 MTR LeightonJohn Holland JV was awarded with ‘Best Contractor’ among all SIL (East) Projects by our client, the Mass
Projects
14
Offshore
Building
Leighton Offshore has been awarded two significant contracts: one in Indonesia and one in Qatar.
Our Indonesian operation has recently been awarded a second project for PT Coca-Cola Amatil Indonesia. We have secured repeat business with this valued blue chip client because we have provided a first class service and exceeded expectation.
opportunities
The Indonesian award is a Pipeline Transportation and Installation contract and represents our first offshore project in Indonesia. We have been successfully working in Indonesia in mining and civil construction for many years and now have an opportunity to demonstrate our offshore capabilities. We will be deploying our Stealth and Faulkner barges for this project, showing our ability to deliver flexible engineering and installation solutions. The other project is for the replacement of floating hoses on the SPM system operated by Qatargas. Ras Laffan Terminal Operations, part of Qatargas Operating Company Ltd, operates and maintains two SPM CALM buoys approximately 54 kilometres offshore from Ras Laffan Industrial City, Qatar. This is the first time we will be operating in Qatar marking a significant entry point to this territory. Boyd Merrett, Chief Executive Officer, Leighton Offshore stated, “We look forward to working with Qatar Gas to deliver this project. The Leighton Offshore O&M Team has more than 100 year’s cumulative experience in SPM related works scopes with a strong focus on safe and environmentally sound operating practices.”
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Projects
on success
Another project has been awarded in Indonesia by Supreme Energy for the Rajabasa Geothermal Power Project in South Sumatra. This places us in a very strong position for the main works package which will be similar to the existing Rantau Dedap Geothermal Power Project. Our Indonesian operation enjoys an excellent relationship with our client Freeport Indonesia, which has resulted in a continuous stream of contracts since 2006. Most recently, we have been awarded a work assignment to construct a multi-purpose superblock at Mile Post 72 Ridge Camp. Leighton Welspun in India has secured an additional pipeline project from Oil & Natural Gas Corporation (ONGC). This is Leighton Welspun’s second pipeline project win of this year, following the award of the Heera RD Phase-2 Pipeline project earlier this month. Leighton Contractors (Malaysia) Sdn Bhd has been awarded the Tanjung Bin Coal Fired Power Station Unit 4 extension project, located in Johore. This has been awarded solely to Leighton Malaysia, who are undertaking work on the Cooling Water Intake and Pump Station, and the Cooling Water Outfall as a joint venture.
Projects
Tin Shui Wai Hospital project progress
The team has achieved Acceptance In Principle and Design Acceptance for the piling from the Architectural Services Department (ASD) and the Geotechnical Engineering Office (GEO) respectively, obtained a construction noise permit, built a strong relationship with neighbouring residents and school staff and has implemented works safely.
The Tin Shui Wai Hospital project in Hong Kong has achieved its first milestone in the foundation works with the first driven H-pile on 17 June. Work began on 27 February this year on construction of the new 12-storey hospital, which will provide in-patient care services including 260 beds, ambulatory care services, community care services, clinical support services and general support services.
The scope of works consists of the design and construction of the 12-storey hospital building with a one-storey basement car park, a two-storey podium and 11 levels of clinical departments, wards and offices, including associated building services, drainage and external work. The construction floor area of the building is approximately 58,900 square metres and the site area is approximately 13,276 square metres. The contract was awarded by the ASD and is a Leighton-Able Joint Venture, scheduled for completion in November 2015.
Projects
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Safety The latest ‘Family Fatigue Awareness Programme’ in Indonesia took place at the Martabe Mine Project in Indonesia on 8 May. This day-long programme, which has been fully supported by our client PT Agincourt Resources, was attended by 18 employee family members.
Focus on
fatigue
The day began in the Recreation Hall with a welcome speech from the management, represented by HR Superintendent Ganda Tampubolon, which was followed by a visitor induction from Safety Clerk Endang Siregar. During the next stage of the programme families watched a poignant video detailing true stories of employees who had been involved in work incidents. They were then shown the Stive for L.I.F.E framework video for fatigue management and were invited on a tour of the site to better understand potential safety issues. The emphasis was on the necessity of family support for miners to ensure that they were not unduly tired. The one-day programme is expected to take place once a month for different groups of employees and their families.
Any degree of tiredness, from a slight lull in energy level to extreme exhaustion can affect behaviour in various undesirable ways. Balance, concentration and the ability to make critical decisions all have countless safety implications in the high-risk environments in which we operate. The consequences of even a momentary loss of attention can be extremely serious and every step must be taken to combat this state. Being physically and mentally able to tackle daily challenges is a combined effort of employees and their loved ones to establish a home conducive to sufficient rest and relaxation activities.
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Safety
Safety
Health and safety
within and beyond the workplace
Recently, the Balikpapan Support Facility (BSF), Indonesia participated in a Health and Safety 2013 celebration associated with the the K3 (Kesehatan dan Keselamatan Kerja) government programme. The programme involves identifying potential risk factors for causing illness or accidents in the workplace. The theme for the celebration was, “Cultivate the K3 culture in every business towards safe, healthy, and productive industrial society.”
Staff from the BSF took the message further by holding five major activites showing their absolute commitment to safety and health in the community as well as the workplace. A social event at Restu Ibu Hospital on 7 February was attended by 80 employees, with a message to make health priority and tips towards a healthier lifestyle. K3-awareness was promoted at East Balikpapan village on 12 February where personnel including the Sub-district Government Regulator and local government officials were in attendance. BSF also took part in an exhibition hosted by PT Pertamina, Indonesian state-owned oil and natural gas corporation between 15 and 16 February. Staff promoted safe and smart driving behaviour and held a promotional poster contest to advocate the concept that safety is everybody’s responsibility.
Safety
18
Safe work
in Singapore
Site safety spot
Staff at the Jalan Besar Project in Singapore have just completed a Safe Work Campaign that focused on “improving the work environment.” Creating the right climate promotes long-term, improved safe work behaviour which strengthens our safety culture. A safety campaign document established key areas for concentration along with an outline of potential initiatives. The document was treated as work-inprogress throughout the nine-week campaign and updated by the project team at regular intervals to adjust and fine-tune the target behaviours. Key initiatives of the campaign were: demarcation of access and material laydown areas, improved work rest areas and amenities on site, improved work techniques, a review of temporary services at the workface and implementation of practicable safety improvements and reinforcement of the Project Emergency Response procedures with the active involvement of the Singapore Civil Defence Force. The project team was fully behind the various on-site initiatives and was rewarded by the positive effects on safe work behaviour evident in the reducing trend of hand injuries alongside increased productivity. The team is proud of achieving a phased approach to efficient safe work operations. The campaign awards event took place in mid June with a safety campaign lunch and recognition of individual project safety champions. Continuing to improve behaviour and maintain the safety culture in Singapore remains a focus. 19
Safety
When Andrew Hall, Corporate HSE Manager paid a visit to the Australian Embassy Jakarta (AEJ) Project he was quick to spot Carpenter Pak Masruroji, in full PPE of vest, helmet, safety shoes and also glasses which was not a mandatory requirement. His decision to wear glasses was commended as he had personally identified a potential eye safety risk. At the AEJ Project site Greg Jackson, Leighton Total Joint Operation (LTJO) Project Manager also participated in the safety toolbox meeting held by the HSE Department on 27 April. Workers were rewarded through their responses to a series of safety questions as a way of enhancing their motivation for safety awareness.
Safety
Thank you in Laos
Leighton Laos held a Thank You (Kop Chai) party to celebrate the workforce’s efforts over the past 12 months and their achievement of 300,000 hours Lost Time Injury (LTI) free under the commitment to Strive for L.I.F.E. The party was held on Saturday 4 May just following International Labour Day on the first of the month, making it the ideal time for a joint celebration. The successful event was due to the exceptional organisational skills of Lair Keungdalar and Soy Siharath. Guests received prizes which included a rice cooker, water boiler, microwave, mobile phone, refrigerator, and a much coveted LCD TV.
HSE month at MSJ
Forty-five employees including mining, plant and office workers donated their blood to the Indonesian Red Cross of Samarinda on 6 April, making Leighton Contractors Indonesia the provider of the greatest number of blood donors on the MSJ project. The blood donation scheme has been taking place every three months since 2010 and our Indonesian operation provides a clinic for the donations to take place. The most recent set of blood donation coincided with the MSJ Project’s Health, Safety and Environment month which Leighton assisted with the provision of a physician and paramedics, really demonstrating care for the local community.
Safety
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Green
LAIO sets its sights
on sustainability
our business activities today do not compromise our business opportunities of tomorrow, or the quality or availability of resources left for future generations. By introducing a sustainability agenda at Leighton Asia, India and Offshore (LAIO), we are seizing an opportunity to positively influence the industries in which we operate. In raising the bar on environmental performance, we will also realise greater operational efficiencies and reinforce our reputation as a responsible contractor striving for excellence. This is because sustainability implies greater resource efficiency; paying closer attention to electricity usage in all of our offices and finding ways to reduce fossil fuel consumption across our sectors. It means better management of our waste; whether through materials reuse, or tapping into secondary markets for our waste streams. On our path to sustainability we will take a range of approaches. Some will be at no cost (engaging with suppliers to reduce packaging waste, on-site bioremediation of contaminated soil, or simply switching off lights); some may be at low cost (switching to FSC certified timber); and some may be perceived as high cost (measures that involve upfront capital investment, such as investing in onsite renewable energy generation).
People often misinterpret the concept of sustainability as being ‘nice to have’, but not business critical. To put it simply, sustainability means operating in a way that utilises our resources carefully, ensuring that
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Green
Reducing our carbon footprint, or using less fuel and electricity, translates into immediate and significant cost savings. Similarly, establishing a mechanism that
Green
maximises reuse of materials across projects, achieves savings related to procurement, avoided transport costs and landfill fees. The business case for sustainability is proven. In 2011, our sister operating company Leighton Contractors identified eleven opportunities for energy efficiency measures that yield approximately AUD 1.4 million (US$ 1.3 million) of avoided electricity and fuel costs. A quick glance at consumer goods behemoth, Unilever, reveals that its eco-efficiency programs have yielded more than 300 million (AUD 403.4 million; US$ 397.4 million) in avoided costs since 2008. Sustainability is good for the planet, good for future generations and good for LAIO. Today, LAIO business units are already taking the initiative to raise the bar on environmental performance and resource efficiency. In Indonesia, the HSE team is tackling fuel use by using breakthrough fleet monitoring equipment, heavy plant simulators, and smart detonating processes at the Wahana mine in Indonesia. Our Hong Kong operation, which was recently recognised by Hong Kong’s Council of Social Service (HKCSS) for its corporate social responsibility initiatives, has gone the extra mile on creating environmentally responsible work sites. By leveraging our environmental expertise, LAIO’s business units are already positively impacting client projects at the design stage. This gives us an early mover advantage in the high growth green building sector.
Our team in the Philippines has demonstrated excellence in this space, using their knowledge and expertise in the Philippines to elevate the Zuellig Building’s certification LEED (Leadership in Energy and Environmental Design) from Gold, to Platinum. Our team currently working on the US Embassy project in Ventiane, Laos, is aiming for Silver LEED certification. In Chennai, India, as EPC contractor on the Ramanujan IT City, Leighton Welspun is aiming for Gold LEED certification. Future opportunities such as these will become more frequent across our Asian geographic footprint. To ensure such forward-thinking initiatives become standard business practice, LAIO recently appointed a sustainability manager, Rikki Stancich. Rikki is currently working closely with LAIO’s respective business units and relevant stakeholders to develop a sustainability strategy that sets out clear energy, fuel and waste management policies and targets. Our goal is that our clients recognise that LAIO businesses strive not only for L.I.F.E., but also for environmental excellence. LAIO has embarked on a journey of environmental stewardship that will positively impact heavy industries and champion green building and infrastructure. By getting this right, we will become the civil engineering, construction, mining and offshore oil and gas contractor of first choice in Asia.
Green
22
Record banyan
tree relocation The trees were between four and six metres in diameter and weighed between 65 and 96 tonnes. The process involved mobilisation of heavy equipment to the Banyan tree location, excavation of the roots area and lifting, moving and replanting of the banyan tree. The roots were so firmly implanted in the ground that two excavators were required to excavate the surrounding area and the weight such that a 250-tonne capacity Kobelco 7250 crane was used for lifting.
Leighton Total Joint Operation (LTJO) has received a certificate for the largest relocation of banyan trees undertaken in Indonesia by the Indonesian World Records Museum (Museum Rekor Dunia Indonesia MURI). LTJO successfully relocated three banyan trees at the construction site of the New Australian Embassy Jakarta project, located in Patra Kuningan, South Jakarta. The relocation process was undertaken from 7-20 February, taking between three and four days to move each tree. The award was presented by Bapak Paulus Pangka SH,, Senior Manager of the Indonesian World Records Museum in June. On behalf of the Australian Embassy project, Bapak Frans S. Poerwatmodjo, accompanied by Bapak Rudy Wibowo and Bapak Iman Rachmanto from LTJO, received the certificate.
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Green
Justin Colling, President Director of our Indonesian Operation said, “Not only is this a significant environmental and heritage accomplishment but it was done safely with highly technical crane lifting operations.” Congratulations to everyone involved in this noteworthy achievement.
Green
Tree planting pursuits
To fulfill our core value of ‘protecting the environment’, Mongolia operation staff were quick to join in the action. The event kicked off with an opening ceremony in which Park authorities introduced this green initiative and art performances entertained the crowd. Leighton’s contribution was a generous USD 1,000 that provided just over 50 tree seedlings. In addition, some employees including Mark Bailey, Executive Director, Leighton LLC, Tania De Silva, Human Resources Manager and Garry Saunders, HSE Manager voluntarily purchased and planted some extra seedlings. The seedlings were planted by 35 greenfingered employees from our Mongolia office, who took great pride in doing their bit for the environment. Staff from our Mongolia operation joined forces with more than 2,000 volunteers from 200 organisations for a tree-planting event, held at the National Garden Park in Ulaanbaatar, which aimed to provide a healthy living environment for citizens and reduce air pollution.
The worthy event concluded with special barbecue lunch at the River Beach Resort. All participants were rewarded with a certificate of appreciation as gratitude for their efforts.
In accordance with the decree issued by the President of Mongolia, the second Saturday of May and October each year are pronounced national days for planting trees. This spring the National Day fell on 11 May 2013 and the volunteers set about enthusiastically planting trees at different parts of the capital city.
Green
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Employee engagement survey
Confidence key in professional review
The inaugural Leighton Holdings Group-wide Engagement Survey has just been launched internationally. Every member of staff across the Leighton Group was invited to take part. The Group recognises that our people are the key to our continued success and as such employee views about how we are performing are critical. The aim is to improve the business through constructive feedback on how to do so. A leading independent expert in the field of employee engagement, Towers Watson, has been appointed to carry out the survey, ensuring staff of the confidentiality of their responses and furthering their willingness to take part. Results will be shared later in the year and from these findings we can develop future Group initiatives and continue to improve policies, procedures and practices.
People 25
People
Twenty budding engineers from the Young Professional Club (YPC) gathered for an invaluable advisory session from experienced Chartered engineers: Brian Gillon, Au Wing Chung, Gallio Lee and Raymond Kong. They were able to benefit from the abundant collective expertise to help them prepare for their Chartership Professional Review.
People
Each of the four Chartered Engineers acts as an assessor for the Institution of Chartered Engineers, which accredits candidates showing sufficient knowledge and experience with their chartered qualification. The sharing session helped to clarify mounting rumours and provide clear direction for the up-and-coming youngsters. The loud and clear message was to show confidence during the review since first impressions last. It was explained that assessors do try to be fair in asking questions about aspects of engineering in the works area with which the candidate is familiar. In the event that a candidate is faced with a question they do not know how to answer, then the experts maintained that honesty really is the best policy and advised the candidates to say that they do not know. They further suggested that applicants should pre-select a favourite topic for discussion to display their knowledge, professionalism and that all important confidence.
Manager as
Coach
The LAIO HR Team recently developed a two-day training programme for senior leaders called ‘Manager as Coach’. Coaching skills are essential for good leadership, and a critical step for our businesses in creating a performance driven culture. The two-day programme will equip participants with the skills they need to be able to coach their team members effectively. The training was piloted in Kuala Lumpur on 18-19 June and will now be rolled out through LAIO more broadly.
People
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Update and sundown event
Leighton Laos lays on the glitz
in Mongolia
Ian Edwards, Managing Director of Leighton Asia, India and Offshore (LAIO) and Peter Pollard, Chief Financial Officer spent several days visiting our Mongolian operation together with Paul Kimberley, General Manager of our Philippines, Mongolia and Guam operation. Their first appointment was with the Minister of the Cabinet Office of the Government of Mongolia, held at the Government Palace. Following their meeting, the leaders headed to the Ukhaa Khudag Coal Mine and the Salkhit Wind Farm where they were warmly welcomed by both sets of site personnel and updated on progress at each project. On 23 April the guests enjoyed a sundowner with the Mongolia support office, where they updated staff on LAIO Corporate initiatives and offered the opportunity for questions. This was followed by a presentation to update all present on the Mongolian operation and an enjoyable folk performance by local artists.
Our project team in Vientiane, Laos truly had a ball on Saturday 1 June as gold sponsors of the Women’s International Group (WIG) Ball. With women active in the construction sector, their importance and contribution to the development of Lao society cannot be underestimated. The glamorous evening, held at Lao Plazza, Vientaine, was attended by many of Laos’s business leaders including the American Ambassador to Lao PDR, Karen B. Stewart. An attractive booth and selection of Leighton-branded souvenir items provided strong exposure to the Leighton brand as well as ‘Growing with Leighton’. WIG was formed in the early 1990s in Vientiane, Lao PDR by a small group of expatriate women who felt the need to have an organisation which would support women and children who are disadvantaged in the Laos community. Today the Group continues to provide a support system and raise funds for projects benefiting underprivileged Lao women and children. The cause was not only a worthy one but a pertinent one since over 40% of the workforce on the New U.S. Embassy project in Vientiane are women.
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Events
Events
Events Bai sun marks
bright beginnings
The ceremony took place alongside the monthly lunch, this time featuring a presentation from the Assets department who shared their knowledge through a short presentation and a humorous quiz. It is believed that the bai sun will bring good fortune to the newly designated working areas. The revamped LAIO Corporate Office in Hong Kong was blessed on Monday 24 June with a traditional Chinese lion dance, to the thrilling thud of a beating drum. Following relocation of staff to the Kuala Lumpur Hub, the space they previously occupied is now home to Assets, People, Safety and Environment and Corporate Affairs and Communications teams. New hires in several departments mean that sections have expanded and the new-look office features no partitioning and the inclusion of breakout areas to create a more engaging and dynamic environment. Heading the bai sun ceremony were Ian Edwards, Managing Director, LAIO and Peter Pollard, Chief Financial Officer who acknowledged the offering according to ancient Chinese ritual. Ian took the opportunity to remind those present of the continued focus on growth, profitability, cash and the performance of our people into 2014.
Events
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Biceps and Triceps triumphant Hosting
Happy Hour
Five o’clock on Friday is Happy Hour over at Leighton Asia, India and Offshore (LAIO) Corporate Office where workers and their friends and family are welcome to join in the fun. A generous selection of snacks and refreshments of both the soft and alcoholic variety are all on hand. The gathering marks a pleasant end to the week in which staff from differing departments can mingle in an informal setting before embarking on that all-important weekend rest. Happy Hour began on Thursday 16 May and continues to be held at the end of each working week. Guests to Three Pacific Place should head to the bar area to experience this friendly end-of-week winddown.
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Events
Since entering the Dragon Boat competition four years ago our Hong Kong operations had its best results yet at this year’s Stanley Dragon Boat Championship. The Leighton Biceps team came fifth runners-up in the Men’s B Gold Cup and the Leighton Triceps team achieved a merit award in the Men’s B Bronze Cup. It was the first time in the history of Leighton’s participation that both teams competed in the Cup Finals and the first time our teams have ever entered the Gold Cup Finals. The friendship and the team spirit between team mates were evident throughout the training sessions and even more so on competition day. Wilson Liu and Brian Lok expressed their honour in their roles as captains for the Leighton Biceps and the Leighton Triceps. Wilson added, “Both teams enjoyed the friendship and competition and the phenomenal results this year will undoubtedly push our high-powered paddlers to strive for the Gold Cup championship next year.”
Events
Lessons learned Bowling means business
Teams from projects across Hong Kong came together at Mega Fun Bowling World, Tsuen Wan on 19 April for an inter-site bowling tournament. Amongst the participants were Wes Jones, Operations Manager; Patrick Catling, Project Director, Express Rail Link Project XRL822; Paul Freeman, Project Director, South Island (East) Rail Project 903 and Roger Wong, Project Manager, Central-Wanchai Bypass Project. Friendly rivalry prevailed at this Young Professional Club-led event and the evening was one of extreme action from turkey strikes to gutter balls. Staff were accompanied by a large crowd of supporters, in the form of families and friends, who really created an atmosphere and added to the fun. Congratulations to 810A, 816D and Head Office for getting the Team Championship and first and second runner-up positions respectively. Huge applause was also provided for William Wong from 816D and Grace Leung from 810A for their high scores, which granted them the respective titles of Bowling King and Queen.
Enthusiastic Young Professional Club (YPC) members undertook a number of site visits this quarter. On 12 March they visited Tai Hang Tung Recreation Playground to better appreciate the Lai Chi Kok Drainage Tunnel Project. The visit to the 100,000 m3 underground storage tank and pumping station proved an engaging one. The tank would be used during heavy rainstorm as storm water would overflow the triple weir system to the tank for storage. The stored storm water would then be gradually pumped back to the drainage system for discharge into the sea. Members realised how significantly this could reduce the effects of flooding in urban areas. Two site visits to the Express Rail Link Project 810A took place on 12 and 26 April 2012 and participants were able to gain insight from Project Director, Adrian Clamp and Construction Manager, Dan Lam. Each day commenced with an introduction to the project, followed by a site walk showing the main site area and concrete batching plant. Following the tours debriefing sessions took place at which YPC members had the opportunity to further question any construction details they had noticed. Members felt they had gained considerable knowledge to better equip them for their future careers.
Events
30
Hong Kong staff
Walk for Millions Relay race leaves others run-ragged
Recognising the needs of the community is a core value at LAIO. In Hong Kong one way to do just this is by participating in events run by various fundraising charities. The New Territories ‘Walk for Millions’ begun in 1971 is the flagship event of the umbrella organisation ‘The Community Chest’, and on Sunday, 3 March 2013 more than 190 LAIO Hong Kong colleagues walked to show their robust support to the Hong Kong community. The goal of The Community Chest is to work for the betterment of Hong Kong through raising funds for its member social welfare agencies and help the hundreds of thousands of needy and disadvantaged people in Hong Kong. Many expressed their enjoyment throughout the morning which was spent on foot with their friends and family. The route began at Pak Shek Kok Promenade, and proceeded along the scenic Tolo Harbour Cycle Track to end at Tai Po Waterfront Park. Although the journey was short, the resulting donations would be felt for a long time as this year they will support family and child welfare services.
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Events
Leighton left other companies well behind to win the 4 x 100m relay competition at the Construction Industry Council Training Academy (CICTA) Sports cum Family Fun Day in Hong Kong. Sunday 17 March was excitement-fuelled as staff took part in traditional track and field events as well as more original team-building challenges with colleagues and friends. In keeping with our core value of ‘providing a fun, challenging and performance-driven culture’ we competed well and displayed a strong sense of team enjoyment in the telematch games. Congratulations to Thomson Leung who leapt for his life to become first runner-up in the high jump and Ken Lui who threw a mean swinger, coming second runnerup in shot put event!
Events Striking it
lucky
The team-building tournament was a rip-roaring success as cheers from strikes and howls at gutter balls echoed throughout the evening.
Over 120 employees took to Wangsa Walk Bowl, Kuala Lumpur for the second annual staff bowling evening on Thursday 22 May. Teams comprised staff from our Kuala Lumpur office including Leighton Offshore, Leighton Contractors Malaysia and Leighton Engineering. The team spirit generated at the newly created hub continued to shine long after the working day was done as staff from an assortment of disciplines came together in groups of four to engage in some healthy competition. Of the 29 teams, the overall champions ‘Justice League’, namely Process Engineers Norhazizi Ismail, Ahmad Kamarul, Mohd Aizuddin and Ir. Ahmad Raoof, set the winning average score at 551. First runnerup was the appropriately named ‘Strike Queens’ consisting of members from HR, Procurement and Business Development, and taking the second runnerup slot was ‘Selangor Kita Punya.’
The ‘Wooden Spoon’ placing for the lowest scoring team was accepted in good humour by ‘Persepolis’ who scored 279 points. Fun awards were also presented to the teams for Best Costume where ‘Dream-catchers,’ complete with eagles’ feathers and war-paint, took the top spot whilst ‘Hit or Miss’ came in at a close second. Present at the event were members of the LAIO Executive Leadership Team who were in Kuala Lumpur for the ELT Workshops and LAIO Advisory Board meetings. Displaying rather impressive bowling skills themselves: Peter Pollard, Chief Financial Officer, LAIO; Paul Kimberley, General Manager, BU2; Boyd Merrett, Chief Executive Officer, Leighton Offshore; Jim Salmon, Managing Director, LWIN; and Justin Colling, President Director, BU3 presented the prizes at the end of the evening.
In the individual categories, top female scorer was Business Development Administrator, Siti Salwa Nodri with an average score of 151 and Process Engineer, Mohd. Aizuddin was top male scorer with an average of 167 points.
Events
32
Corporate
Living our Code –
Leighton Ethics Line ore
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At Leighton Asia, India and Offshore (‘LAIO’) our Code of Business Conduct reinforces our values and gives us a framework for making the right decisions in our work. We want to have the right people, doing the right things for the right reasons and we are committed to equipping our employees with the necessary information and tools to do business in accordance with our Code at all times. We have worked hard to establish an open and transparent culture at LAIO. We encourage our employees to speak up if at any time they are
33
Corporate
concerned that someone is acting in a way that may compromise our Code. Our people know that if they speak up in good faith, they will be supported for doing the right thing. We acknowledge that in some circumstances people will prefer to speak to someone other than their manager about their ethical questions or concerns. The Leighton Ethics Line provides a safe and effective avenue for our employees to raise issues and have them investigated. The service is staffed by highly trained consultants from an external independent provider that helps companies report, investigate and resolve integrity issues and concerns. These consultants have access to a comprehensive interpreter service covering all the regions and languages where we operate. If you are a LAIO employee you can access the Leighton Ethics Line by phone or email 24 hours a day, seven days a week. The Ethics Line is there for you to safely report any concerns about potential breaches of our Code. You can be confident that your concerns will be carefully considered and investigated. All reports made to this service are treated confidentially. “Our Code supports us in embedding our “can do” culture, providing a positive and safe working environment for our people, building strong relationships with our stakeholders and maintaining our reputation for integrity and excellence.” Ian Edwards, Managing Director, Leighton Asia, India and Offshore.
Corporate
Bits and bytes
Leighton announces
quarterly results
For the 3 Months to 31 March 2013 as at 20 May 2013
LAIO I.T. are hard at work. They are focused on an improved and consistent service to our projects and business and on increasing productivity through a series of upgrades and enhancements. Initial priorities are to: build a single I.T. team across LAIO—better harnessing our capabilities whilst better leveraging our spend; enhance the robustness of our underlying infrastructure and critical applications (such as payroll); simplify and standardise the re-charging for I.T. across the business and; improve the communications about the changes being implemented. LAIO end-users can look forward to hearing more about those changes which will benefit them directly. Thanks to the I.T. team for all their hard work!
On 6 May Leighton Holdings Limited announced Net Profit after Tax (NPAT) of AUD 123 million for the first quarter of financial year 2013, compared to a loss of AUD 80 million in the prior comparable period. Revenue was AUD 5.4 billion, compared to AUD 5.1 billion in the prior comparable period. Chief Executive Officer, Hamish Tyrwhitt, said that it was pleasing to report a rise in NPAT margin in quarter one, to 2.3 per cent compared to the full year 2012 margin of 1.9 per cent. Work in hand was AUD 42.2 billion, with over AUD 4 billion of work awarded during the period. “Notwithstanding current market conditions, we remain on track to deliver a full year underlying NPAT within our previous guidance range of AUD 520 to AUD 600 million and a gearing level within the target band of 25 to 35 per cent by year-end,” said Hamish, adding that the importance of our ‘stabilise, rebase and grow’ strategy in today’s challenging environment is self-evident. Since the quarterly results, Leighton Holdings has completed the sale of 70% of its telecommunication infrastructure assets. The sale values 100% of the assets at AUD 885 million and releases post-tax proceeds of approximately AUD 500 million. Corporate
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2013 Issue 2
next issue: Create a fun, challenging and performance driven culture Coming up in our
At Leighton Asia, India and Offshore (LAIO) we have a can-do attitude to everything we undertake. This attitude is embodied by and demonstrated through our core value of creating a fun, challenging and performance driven culture. We will celebrate success, empower people, encourage teamwork, embrace cultural differences, work hard and play hard.
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