Managing big rental projects: case studies from HK & Macau

Mr Thomas Lau Pong Sing 22nd October, 2019 (Tue) Chairman & CEO AP Rentals Holdings Limited 10 Core Projects of the New International Airport at (1992-1998) International Airport The 12.48-square-kilometer airport site added nearly 1% to Hong Kong's total surface area, connecting to the north side of near new town.

Built on a large artificial island formed by flattening and levelling Chek Lap Kok and Lam Chau islands (3.02 square kilometers and 0.08 square kilometers respectively)

Our rental business employed in the 10 Airport Core Projects 487 500 487 450 Total No. 1,848 400

350 297297 300 262 243 250

200

143143 150 125 120 92 100

50 30 26 18 3 2 0 25 - 800kVA 175 - 750 cfm 4000 - 6000W 280 - 500A MEWPs 2.5 - 4t 25 - 200t 0.5 - 10m3 1.8 - 5.0m 3 165 - 320HP 240 HP 4 - 18t Others Silent Portable Air light Tower Diesel Welder Forklift and Truck Crane Excavator Wheel Loader Bulldozer Motor Grader Vibration Generator Compressor Telehandler and Crawler Roller Crane Strategies and Directions in the 10 Airport Core Projects 1. Uniqueness  Guts to shape rental business model by providing a wide range of equipment instead of specialization in the worksites. (Power & Energy, MEWP & Material Handling, Lifting, Road & Transportation and Earth Moving)

2. Innovation  Replacing traditional scaffolding with MEWPs in construction sites although very few contractors are aware of the advantages of the MEWPs.

3. Resource Allocation  Finance  Assets Management  Assets Disposal Photos in Chek Lap Kok Equipment employed for parking apron Equipment employed for runway Equipment employed for The 10 Major Infrastructure Projects from 2009 to 2018

The Chief Executive had put forward Ten major infrastructure projects in the 2007-2008 Policy Address. In this connection, the Government will :

1. enhance the long-term competitiveness of Hong Kong

2. improve the quality of life

3. cope with the housing demand and other needs brought about by population growth in Hong Kong in the next ten-year period. The 10 major infrastructure projects from 2009 to 2018 Transportation Infrastructure 1. West Island Line and South Island Line 2. Sha Tin to Central Link 3. Tuen Mun Western Bypass & Tuen Mun-Chek Lap Kok Link Cross-boundary Infrastructure Projects 4. Guangzhou-Shenzhen-Hong Kong Express Rail Link 5. HK-Zhuhai-Macao Bridge 6. HK-Shenzhen Airport Co-operation 7. HK-Shenzhen Joint Development of Lok Loop New Urban Development Areas 8. West Kowloon Cultural District 9. Kai Tak Development Plan 10. New Development Areas South Island Line – Admiralty Station Extension Project

14 Situation in South Island Line – Admiralty Station Extension Project Serious delay

Nam Fung Tunnel Connected the Admiralty Station & Ocean Park Station  Tunnel located at over 40 meters under the ground

 Difficult to carry out comprehensive ground investigation work

 The extremely hard rock (>200MPa) was found Solution Provided in South Island Line – Admiralty Station Extension Project

The adoption of innovative rock excavation method to excavate tunnels

The world’s largest hydraulic breaker Difficulties in South Island Line – Admiralty Station Extension Project How this 85-tonne excavator be delivered into the tunnel?

Limited vertical shaft entrance (6m x 6m) Problem Shooting in South Island Line – Admiralty Station Extension Project

 To modify the excavator arm  The short arm is designed by AP Rentals The short arm (about 7.28m)

The original arm (about 8.78m) Problem Shooting in South Island Line – Admiralty Station Extension Project

 Limited vertical shaft entrance (6m x 6m)

1) To disassemble the whole excavator 2) To transport all parts of the excavator through the 6m wide vertical shaft 3) To assemble the machine inside the tunnel In the work site of South Island Line – Admiralty Station Extension Project

 Limited and narrow working space

 Unfavorable working environment

 24 / 7 Excavation in the tunnel Achievements in South Island Line – Admiralty Station Extension Project

• Catch up the operation by more than 5 months

• Maximize the daily hard materials output  >600 cubic meter / day

• >13 excavators with giant breakers in a narrow working place Conclusion AP RENTALS

Solution Provider

 Satisfy and benefit customers’ VS needs Machine Rental Provider  Strong Technical Support  Increase the revenue  Sharpen the competitive edge  No other value-added services provided Conclusion (cont’d)

Turn the competition to be a drive for excellence

Smart System of Mobile Equipment Conclusion (cont’d) To maintain professionalism in rental business

Prescience The ability to predict and forecast the market needs Thank You! Leading the Past, Building the Future! Uniqueness Innovation Professional