Mega Reclamations Opportunities and Challenges

By: Jan Schaart Van Oord Dredging & Marine Contractors

CEDA Conference on Dredging and Reclamation 6th-7th May 2008

Doha Exhibition Centre, Doha, Qatar Subjects

• Reclamation records

• Developments

• Where will we live in 2050?

• Reclamation pays

• Conclusions 1. Reclamation records Reclamation records

• First in countries: – with a high population density – with a strong economic growth – where coastal land was scarce – where reclamation was technically feasible – with long term ‘vision’ • Examples: The , , , Japan, USA and recently Reclamation records, the Netherlands

• More than 10 centuries of sea defence history

• At first reclamations for flood protection and flood control

• Since 17th century the construction of Polders

• In recent history reclamation with the use of marine fill

• Reclamation for agriculture, housing, industry and infrastructure

• A total of 2270 km2 added (7% of total land area)

• Extension Port of , Maasvlakte 2, will add another 10

km2 If there were no sea defences Reclamation records, Singapore

• Started in 1965 and never stopped

• For (air)ports, housing, industry and recreation

• Total 97 km2 (18% of total land area)

• First landfill, later marine

• In total 2 billion m3

• Still 1.0 billion m3 marine fill to go

• Most famous projects Changi, Jurong, TUAS Singapore land reclamations Reclamation records, Hong Kong

• Demand for space for housing, industry and infrastructure

• Total 60 km2 (6% of total land area) added

• Before 1980, landfill

• Later marine fill

• Most famous CT 8 and 9, Penny’s Bay and Chek Lap Kok airport Reclamation records, Dubai

• Development of a sustainable economy

• Based on vision of Ruler Sheik Mohammed of Dubai

• Major land reclamations started in 2001 (first )

• Space for housing, industry and infrastructure and leisure

• Reclamation at a unprecedented scale and speed

• A total of 27 km2 has been added already

• An additional 65 km2 will be reclaimed (current projects)

• New mega developments on drawing board Reclamations in Dubai

Van Oord projects

• Palm Jumeirah • Port Rashid • Logo Islands • Palm Deira • The • • Dubai Beaches • Rock transport Palm Jumeirah

Sand volume: 110 mln. m3 Start: late 2001 Completed: late 2004

Total area : 9 X 7 kmArea : 7 x 9 km Sand volume : 325 mln. m3 Island size : 1.6 – 5.4 ha Rock volume : 32 mln. tons Sand volume : 325 mln. m3 Start : Sept. 2003 Rock volume : 32 mln. tons Completed : End 2007 Length breakwater : 25 kms – Port Rashid

2 km2 island for marine industry Sand: 32,5 mln. m3 Start: April 2003 Completed: Nov. 2006 Palm Deira, the largest ever

AfmetingSand volume : 8 :1200X 13 mlnkm m3 OppervlakteRock volume : 25 :150 km2 mln tons ZandvolumeArea : 700: 9 xmln. 13 kms m3 SteenvolumeStart : 110: 2006 mln. ton Projectduur : 8 jaar Completion : 2014 Waarde : 2.5 miljard € 2. Developments of the world dredging market World dredging market in 2007

• World dredging market ± 12 billion Euro

• Including dredging market related activities

• Only 65% of world market is ‘open’

• Market share Van Oord 20% (of open market) Dredging market ‘drivers’

DemographyDemography

EnergyEnergy TourismTourism

DemandDemand forfor maritimemaritime infrastructureinfrastructure

EconomyEconomy ClimateClimate changechange Results long term market analyses

• LT market analyses show rising demand for: – New or larger and deeper ports – New, reclaimed land for living, working and recreation – Cruise terminals and beaches – Airports (in sea) – Oil and gas projects, LNG terminals – Coastal and river defence • All drivers contribute to growth dredging and marine construction market 3. Where will we live in 2050? Where will we live in 2050?

• World population has grown from 2.5 billion in 1950 to 6.5 billion today • It will rise to 9 billion in 2050 • Migration from rural to urban will continue • People love living next to water • 80% of large cities are in coastal zones • In 2050 twice as many people will live, work and recreate in coastal areas (100 km strip) • Coastal land will become more scarce • Therefore land prices in coastal cities are expected to rise World wide migration from rural to urban Effects of climate change

• A change of climate cannot be longer denied

• Sea levels will rise for sure

• Low lying areas will be at risk if not properly protected

• Puts further pressure on coastal areas

• It is time to act

• The dredging world is there to help 4. Reclamation pays The cost of reclamation

Cost of reclamation depends on:

• Removal unsuitable mud layers

• Sailing distance to disposal area’s

• Sailing distances to sand borrow areas

• Costs of dredging licences / permits

• Depth of the area to be filled

• Quality of fill material

• Wave and wind climate But also on,..

• Available construction time

• The availability of modern dredging equipment

• The production capacity of dredging equipment

• The quality of the contractor

• The level of partnering with the client Ever increasing productions / week

3500000 3250000 3000000 2750000 2500000 2250000 2000000 1750000 1500000 1250000

Av. Prod. perwk.. 1000000 750000 500000 250000 0 1990 1992 1994 1996 1998 2000 2002 2004 Year Economy of scale (volume versus m3 costs)

Large reclamation projects, costs of fill / m2

€240

€200

€160

€120

€80

€40 0 50 100 150 200 250 300 350 400 450 500 550 Volume in million m3 sand/gravel fill Size of bubble: project volume in million m3 marine fill The cost of reclamation

• Larger, more efficient dredging equipment makes mega projects

possible

• Size (of reclamations) really matters

• Historic dredging fill costs ‘always’ below € 140 per m2 !!

• Add ± 40% for seawall / rock protection

• Add ± 10% for soil improvement / compacting

• Total reclamation costs usually below € 250 per m2 !! Current seafront land prices per m2

City Range of land prices (2006) in € / m2 Hong Kong 19,500 – 31,400

Singapore 4,600 – 6,200

Dubai 1,785 – 4,150

Tokyo 1250 (average)

Rotterdam 485 – 625

Cost of reclaimed land < 250 (incl. revetment and compacting) 5. Conclusions Conclusions

• Reclamation are getting - economically and technically - more and more feasible • Due to larger dredging equipment and innovations prices of reclamation has gone down • Very high productions can be achieved (up to 3 million m3 per week) • Reclamation can be designed for sea level rising • Early ‘partnering’ with dredging contractor will help client / developer to optimize design and execution • Therefore: ‘reclamation pays’ Van Oord: a sea of opportunity

Thank you for your attention