Hot Stuff a Revolution in Hot-Gas Filtration

February 2020

HOT STUFF A REVOLUTION IN HOT-GAS FILTRATION

200120-world-cement-cover.indd 3 22.01.2020 11:14:59 WE MOVE INDUSTRIES

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03 Comment 55 Fuelling Change 05 News Samuel Zühlsdorf, thyssenkrupp, considers the fuel substitution technologies that are set to help the cement industry conserve

REGIONAL REPORT: SOUTHEAST ASIA natural resources and decrease CO2 emissions. 10 Success in the Southeast Danny Richards, GlobalData, provides a comprehensive MATERIALS HANDLING overview of the booming Southeast Asian construction sector. 59 Tightening the Belt Leslie David provides insight into how taking a different 17 At a Crossroads of Growth approach can signifi cantly reduce replacement conveyor Manas Tamotia and George Woods, L.E.K. Consulting, belt expenditure. provide an overview of the key trends expected to shape the Southeast Asian cement market in the coming years. SAMPLING & ANALYSIS 65 Cementing a Reputation AIR POLLUTION CONTROL Ivo Nemetz, Elementar, considers the essential role of 21 DSI System Optimisation elemental analysis in creating high-quality cement. Dr. Ian Saratovsky, Martin Dillon and Gerald Hunt, Lhoist, examine dry sorbent injections (DSI) as a cost-effective solution ADDITIVES & GRINDING AIDS for complying with acid gas emission control requirements. 68 Changing the Approach Martyn Whitehead, Fosroc International, addresses how 28 The Future of Filtration and when grinding aids and cement additives can be Georg Lechner, Scheuch, outlines the advantages of hot effectively used for the production of good quality cement. gas fi ltration with ceramic fi lter elements and explains how this technology may be able to meet the demand for more TRAINING/SAFETY energy effi cient systems. 73 Pushing the Limits of Training Scott Thomas, Argos USA, considers the importance of 33 Done and Dedusted improved driver training and the benefi ts to be gained from Eduardo Sauto, Gorco, identifi es the common errors made implementing virtual reality technology. in dedusting installations and outlines how to prevent them from occurring. GENERAL INTEREST 76 The Path to Sustainability 38 Optimising for Alternative Fuels David Bizley, Editor of World Cement, spoke with Jean-Michel Charmet, Rani Hanna and Sami Zellagui, Francesco Caltagirone Jr., Chairman & CEO Fives FCB, discuss the use of high level CFD modelling of Cementir Group, to discuss sustainability and the to optimise calciner systems for the use of alternative fuels company’s ‘Industrial Plan’ for 2020 – 22. and reduced CO2 and NOx emissions.

ALTERNATIVE FUELS 47 Adding Alternative Fuel to the Fire Tahir Abbas and Michail P. Akritopoulos, Cinar, discuss the February 2020 pros and cons of using alternative fuels (AF) for ﬁ ring in kilns and calciners.

ON THE COVER The Austrian Scheuch Group with subsidiaries all around the world, is known to be one of the leading global players in the area of air and environmental technology. For more than 55 years, Scheuch has been providing innovative solutions such as dedusting and exhaust gas cleaning for industrial applications. The focus is set on extensive research and development in order to further HOT STUFF extend its technological leadership position. As with emc, deconox and xmercury, Scheuch is now A REVOLUTION IN HOT-GAS FILTRATION breaking new ground in hot-gas ﬁ ltration. For more information, visit: www.scheuch.com We know the way forward.

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Managing Editor: James Little DAVID BIZLEY, EDITOR [email protected]

Editor: David Bizley ust recently, I found myself wondering how [email protected] people would characterise this new decade Editorial Assistant: Emily Thomas in years to come. How will the 2020s be [email protected] remembered by people living in the 2120s? Contributing Editor: Paul Maxwell-Cook HopefullyJ better than how we remember the 1920s – a decade that began with a lethal pandemic and Production: Gabriella Bond [email protected] ended with almost complete economic collapse. We have at least, thus far, avoided the fate predicted Sales Director: Rod Hardy [email protected] by 1982’s Blade Runner (an actual cinematic gem – 84% on Metacritic), which depicted a Los Angeles of 2019 as a dystopian nightmare struggling in the Sales Manager: Ian Lewis [email protected] aftermath of global war and environmental collapse. Although it’s diffi cult to know for certain at this early stage (barely a month in Website Manager: Tom Fullerton [email protected] to the decade), there are two main areas that I think will mark the 2020s out for historians of the future: 1) the global adoption of digital technologies, and 2) how Digital Editorial Assistant: Imogen Poole [email protected] the world reacts to the challenge of climate change. Administration Manager: Laura White Many of our daily lives are already heavily infl uenced by digital technology: [email protected] more than 57% of the global population (4.33 billion people) have access to Reprints the internet, and 45% of all people (3.5 billion) have a smartphone. In any major [email protected] population centre, the air is permeated with radio and microwaves transmitting endless streams of data, often to and from the devices in our pockets. If the 2000s and 2010s oversaw the birth of the digital age, the 2020s look set to see it come to fruition as billions more people around the world get online. Technologies that once seemed like science fi ction not long ago – artifi cial SUBSCRIPTIONS intelligence, virtual reality, and even quantum computing – took their fi rst steps Annual subscription (published monthly): £160 UK in the last decade and will see further development and integration in both the including postage/£175 ( 245) overseas (postage commercial and industrial sectors in the next. airmail)/US$280 USA/Canada (postage airmail). Two year subscription (published monthly): £256 UK The cement industry is already adapting to the digital age. To give just a few including postage/£280 ( 392) overseas (postage airmail)/US$448 USA/Canada (postage airmail). examples: Starlinger recently announced the launch of its GRAFiT 4.0 software, Claims for non receipt of issues must be made within 4 months of publication of the issue or they will not which uses artifi cial intelligence and machine learning to automate processes be honoured without charge. and predict potential machine downtime – OSIsoft’s PI System allows users to Applicable only to USA and Canada: collect, analyse, and share large amounts of data from multiple sources across WORLD CEMENT (ISSN No: 0263-6050, USPS No: 020-996) is published monthly by an operation, providing real-time operational intelligence – and FIVES FCB uses Palladian Publications, GBR and is distributed in the USA by Asendia USA, 17B S Middlesex Ave, state-of-the-art CFD simulation to optimise calciner systems for alternative fuels Monroe NJ 08831. (p. 38). Periodicals postage paid New Brunswick, NJ As for the challenge of climate change, there’s certainly growing consumer and additional mailing offices. POSTMASTER: send address changes to World Cement, 701C pressure for the development of greener technologies and the adoption Ashland Ave, Folcroft PA 19032 of more environmentally friendly lifestyles, but whether this translates into Copyright © Palladian Publications Ltd 2019. All rights reserved. No part of this publication may political will across the globe remains to be seen. We can at least point to be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, numerous examples from the cement industry where emissions reduction mechanical, photocopying, recording or otherwise, and environmental sustainability is being taken seriously: HeidelbergCement without the prior permission of the copyright owner. All views expressed in this journal are those of the was recently awarded an ‘A’ rating by the CDP (formerly Carbon Disclosure respective contributors and are not necessarily the opinions of the publisher, neither do the publishers Project) for its commitment to climate action – FLSmidth has launched its endorse any of the claims made in the articles or the advertisements. Uncaptioned images courtesy of ‘MissionZero’ sustainability initiative – thyssenkrupp has its green polysius Adobe Stock. Printed in the UK. cement plant scheme and has developed a range of fuel substitution Palladian Publications Ltd 15 South Street, Farnham, Surrey technologies (p. 50) – and Cementir Group has placed sustainability as a key GU9 7QU, UK part of its Industrial Plan for 2020 – 2022 (p. 76). Tel +44 (0)1252 718999 Fax +44 (0)1252 718992 However this decade turns out, it’s clear that much of the cement sector is Email: [email protected] Website: www.worldcement.com working hard to become an industry fi t for the future.

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HeidelbergCement awarded ‘A’ rating for to make a contribution to the Green Deal by climate protection striving for carbon neutrality along the cement and concrete value chain by 2050. The non-proﬁ t organisation CDP (formerly To that effect, CEMBUREAU will undertake Carbon Disclosure Project) has recognised a review of the targets set out in its HeidelbergCement with a place on the 2050 Low Carbon Roadmap (2013/2018) in ‘Climate Change A-List 2019’ as one of the leading order to align the industry’s efforts with the companies worldwide for its commitment to climate carbon neutrality objectives contained in the action. HeidelbergCement has improved its rating European Green Deal published last month. in the area of climate protection from ‘A -’ in Following this reassessment, the industry will the previous year, to the top grade ‘A’. In 2019, publish a revised low-carbon roadmap setting around 8000 companies disclosed data to CDP. out the key role of cement and concrete in the Of these, only 179 companies worldwide, thereof circular economy and a path to achieving carbon 9 in Germany, were awarded the top grade, ‘A’. neutrality along its value chain in Europe by 2050. “We are proud that we could further improve CEMBUREAU expects the revised Roadmap to be HeidelbergCement’s leading position from published in early Spring 2020. previous years and achieve a solid ‘A’ rating on the Raoul de Parisot, CEMBUREAU President,

CDP climate list. After our ambitious CO2 reduction said: “As an industry we are determined to ensure targets were approved by the Science Based that we play our part in helping Europe to meet Targets initiative (SBTi) in 2019, this prime rating its emissions reduction targets. With concrete, once again demonstrates that HeidelbergCement our industry has a sustainable building material is on the right track in terms of climate action”, said that is uniquely positioned as an essential enabler Dr. Bernd Scheifele, Chairman of the Managing of the transition to a carbon neutral society. The Board of HeidelbergCement. “Cutting our sustainability beneﬁ ts of concrete as a locally

CO2 emissions and handling natural resources manufactured product, including its durability, considerately are priorities for all our business thermal mass, recyclability, and its carbon uptake, lines.” make it the building material of choice for the CDP is considered an important sustainability construction of the sustainable buildings and rating for investors. It assesses performance, infrastructure needed to address the challenges transparency and proven management best posed by climate change.” practices from companies in the ﬁ elds of climate Koen Coppenholle, CEMBUREAU change and protection of water and forests, Chief Executive, added “Our revised allocating scores of ‘A’ to ‘D -’. The goal of the low-carbon roadmap will be aligned with the CDP rating is to promote competition in the area Green Deal ambition of a carbon neutral Europe, of sustainability and encourage companies to looking at all actions and policy levers needed set ambitious environmental protection targets. to achieve carbon neutrality along the cement The companies on the CDP Climate Change and concrete value chain. It is already clear that A List are considered to be leaders because of the forward-looking policies of our industry on their transparent and comprehensive disclosure innovation, waste, CO2 transportation networks, of climate data, thorough awareness of climate access to affordable energy and sustainable risks, demonstration of strong governance and construction will play a leading role.” management of those risks, as well as their demonstration of market-leading best practices. Gebr. Pfeiffer to supply cement mill to South Indian plant CEMBUREAU reviews low-carbon roadmap to align with Europe’s carbon Gebr. Pfeiffer has supplied almost 150 MPS neutrality goals and MVR mills to India, with customers head-quartered in Delhi, Mumbai, Kolkata, CEMBUREAU, the association of the European Hyderabad, Ahmedabad and other cities, all of cement industry, has announced its intention which are situated in Northern India.

February 2020 World Cement 5 NNEWSEWS

However, the company has not before supplied a mill to a Southern DIARY Indian location. Yet, with the order placed by Chettinad Cement, Gebr. Pfeiffer OSIsoft Webinar: How won a contract for a granulated blast-furnace slag and to succeed in Digital blast-furnace cement grinding plant, which will be set up near the Transformation in Mining steel works town of Visakapatnam. The company will equip the and Materials plant with an MVR 6000 C-6 roller mill. 10 February 2020 Key factors that influenced the buying decision of the end https://bit.ly/2ZJlnKj customer and his consultant, HOLTEC, included the good references of Pfeiffer’s grinding plants in India, in particular those with the MVR 6000 C-6 mills, and also elsewhere in the world, CEMENTTECH 2020 the low energy consumption and the flexibility of the MVR mill. 25 – 27 March 2020 The active redundancy of the grinding rollers, which makes it Anhui, China possible to operate the mill with a reduced number of grinding www.cementtech.org rollers in the event of maintenance work or a malfunction, gives the cement producer the security of its plant having a high level of availability. SOLIDS & The grinding plant will be producing mixed cements with RECYCLING-TECHNIK different proportions of clinker, gypsum, fly ash and granulated Dortmund 2020 blast-furnace slag. 01 – 02 April 2020 Depending on the product to be achieved, the capacity will Dortmund, Germany range between 235 and 340 t/hr, with the products ground to www.solids-dortmund.com fineness degrees between 3000 and 3800 cm²/g acc. to Blaine. Gebr. Pfeiffer SE will supply the core components of the MVR 6000 C-6 mill as well as the 6700 kW gear unit from World Cement Europe. Foundation parts, housings and other components Online Conference: will be manufactured in India and delivered to the customer by Sustainability 2020 Gebr. Pfeiffer (India) Pvt. Ltd., Pfeiffer’s wholly owned subsidiary. 07 April 2020 Gebr. Pfeiffer (India) Pvt. Ltd., headquartered in Noida near https://bit.ly/2MOTF9V New Delhi, will also assist the customer with the plant layout and procure a major part of the machines to complete the grinding plant, such as filter, fan, hot gas generator, fly ash handling and IEEE-IAS/PCA Cement conveying equipment. Moreover, its personnel will carry out the Conference quality control of the parts manufactured on site. 19 – 23 April 2020 Las Vegas, USA Argos plants receive WHC conservation certiﬁ cation www.cementconference.org Argos, cement company of Grupo Argos, has been congratulated on its efforts to create and maintain programmes that produce interpack 2020 quantitative benefits for local wildlife, with its Atlanta and 07 – 13 May 2020 Newberry Cement Plants having been given the Wildlife Habitat Düsseldorf, Germany Council (WHC) Conservation Certification. www.interpack.com To be certified by the WHC, the company had to demonstrate that they have a meaningful wildlife habitat management and conservation education programme, provide third-party credibility, Hillhead 2020 produce an aggregated metric for reporting and demonstrate a 23 – 25 June 2020 long-term commitment to managing quality habitats for wildlife, Buxton, UK conservation education and community outreach initiatives. www.hillhead.com

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As part of their conservation efforts, the Danny Richards, Lead Economist at Atlanta Cement Plant built pollinator gardens GlobalData, commented, “The pace of geared towards bees and butterflies, as well expansion in the global construction industry as bluebird boxes that provide shelter for them. in 2019 was the slowest in a decade, standing Moreover, the Newberry Plant has a bat roost at 2.6%. Slowdown in construction output project to provide safe places for bats to roost. growth has been particularly severe in advanced Conservation Certification recognises a economies, including the US, the UK and diversity of wide-ranging projects that include Australia.” native landscaping, mangrove restoration, “However, global construction output growth butterfly monitoring, sustainable hunting to is forecast to edge up to 3.1% in 2020. control deer populations, PhD projects, and Improvement in construction growth will, in part, community Earth Day events. be driven by a projected improvement in the global economy in 2020, which, in turn, relies FLSmidth to reduce number of on improvements in fi nancial market sentiment employees by 500 and a stabilisation in some of the large currently-troubled emerging markets.” FLSmidth is adjusting its number of employees Despite the positive outlook, geopolitical risks by approximately 500 as part of the business are intensifying and could potentially undermine improvement initiatives announced towards the investor confi dence and disrupt capital fl ows in end of 2019 and as a consequence of current the early part of the forecast period. Risks to the industry caution and delays tied to large capital overall forecast stem primarily from a possible investments. escalation in the trade war between the US and To improve efficiency and adapt to the China, and also infl amed tensions between the anticipated business activity in 2020, US and Iran. FLSmidth has decided to reduce the number Richards added, “There is a risk that China of employees by approximately 500 globally. could overstep its efforts to support the The reductions will include approximately 80 economy, resulting in an unmanageable debt situated at the headquarters in Copenhagen, crisis, which would disrupt investment trends Denmark, as well as another approximately globally, most notably via the impact on demand 420 staff in offices around the world. in commodities markets. There are also other FLSmidth CEO, Thomas Schulz, commented, major emerging markets facing domestic “Despite a healthy pipeline, this is an political and economic stresses that could unfortunate yet necessary action given the erupt into full-blown crises, creating a risk of weakening market for large capital investments contagion across these markets.” in 2019 and our ongoing efforts to improve internal efficiency. In connection with Q3, we MPA Cement publishes Sustainable announced a need to make necessary business Development report adjustments, and we take this step now to position FLSmidth for future profitable growth.” MPA Cement has published its 2019 Sustainable Development Report, based on GlobalData anticipates brighter data provided by MPA Cement’s fi ve member construction output growth prospects companies who together supplied 78% of the for 2020 cement consumed in the UK in 2018. Aligned with the seven MPA strategic priorities, the The global construction industry has been report highlights activity in health and safety, struggling to generate growth momentum, communicating industry value, people, resource reflecting weakness in the global economy, but use, climate change and energy, the natural prospects for 2020 are positive, according to environment and the built environment, resulting GlobalData, data and analytics company. in a recycled content of cement of almost 10%.

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Find out more about your process optimization with PROMECON technology. Danny Richards, GlobalData, provides a comprehensive overview of the booming Southeast Asian construction sector.

espite being Malaysia, Thailand and Vietnam comprised of a diverse have developed into major global range of countries in manufacturing hubs in electronics Dterms of economic size and automobiles, among others, and development, Southeast Asia while Indonesia and the Philippines is amongst the fastest growing are large markets with high regions. The countries within levels of domestic demand, and Southeast Asia are generally Singapore remains a leading open to international trade and ﬁ nancial hub. The smaller markets foreign investment, but have also of Cambodia, Laos and Myanmar worked closely together under the are successfully transforming into Association of Southeast Asian fast-growing emerging markets Nations (ASEAN) to form a and are integrating with regional large trading group. Individually, supply chains.

10 11 Part of the region’s economic success expansion of 10.2% in 2019 – 2023. This has been down to investment in physical rapid growth in part refl ects the low quality of infrastructure to ensure continued improvement infrastructure in Myanmar relative to the other in transportation links, power supplies and other countries in the region, and thus the need for utilities, with this investment in infrastructure high levels of investment to build new transport continuing at a fast pace. In the past fi ve networks and power generating capacity, for years, the value of infrastructure construction example. Conversely, in Singapore, which has in the region grew by 7.9% on an annual the highest quality of infrastructure in the world average basis, outpacing all other major according to the World Economic Forum, the regions (measured at constant 2017 prices pace of increase in infrastructure construction is and exchange rates). In 2019 – 2023, growth relatively low, forecast to average 3.4% a year in infrastructure construction in Southeast Asia in 2019 – 2023. Nevertheless, Singapore’s will remain strong, averaging 7.1% a year, just government aims to expand the length of the marginally slower than the other fast-growing country’s railway network, from 230 km in 2018 emerging markets in South Asia and to 360 km by 2030, increasing the density and Sub-Saharan Africa. reach of mass rapid transit (MRT). The two main MRT developments are the Cross Island Infrastructure construction output MRT line and the Thomson-East Coast Total infrastructure construction output MRT Line (TEL). Construction of Phase 1 of the in Southeast Asia is set to reach Cross Island MRT line (CRL1) is due to start in US$260.5 billion by 2023, up from 2020, and be completed by 2029. US$184.8 billion in 2018. There will be healthy growth in all the main infrastructure sectors over Indonesia the fi ve-year period, ranging from 7.9% a year In the largest market, Indonesia, in road infrastructure construction to 5.8% in President Joko Widodo, who was re-elected the construction of water and sewerage utilities. for a second fi ve-year term in April 2019, In addition to posting the fastest growth, is intending to continue to spend heavily on road infrastructure construction is the highest developing the country’s infrastructure. In the value sector, with output forecast to rise from 2019 budget, the government announced plans US$53.4 billion to US$78.19 billion by 2023. to build over 2200 km of roads, 615 km of The region’s railway infrastructure construction new railway lines, four airports and 200 km of value will also remain sizeable, refl ecting major toll roads and bridges by the end of the year, projects that are underway and in the early with an investment of over US$28 billion. In stages of development – by 2023, railway order to increase the passenger and freight infrastructure construction is expected to reach carrying capacity of the railway, the government US$78.1 billion. is focusing on the modernisation of railway lines in the country, and the development of Myanmar transport infrastructure in Jakarta by 2029. Although a relatively small market, infrastructure Under this, the government plans to build the construction in Myanmar is forecast to be the Jakarta Mass Rapid Transit (MRT) project, fastest growing in the region, with an annual which when complete, will have an overall length of over 140 km. Phase 1 of the North-South MRT line was completed in March 2019. Another major transport project underway is the US$6.0 billion 142 km high-speed rail line between Bandung and Jakarta, which is scheduled to be complete by 2021.

Philippines Investment in infrastructure will continue to rise at a rapid pace in the Philippines, with infrastructure construction output expanding by an annual Infrastructure construction output - bubble size reﬂ ects relative average of 9.3% a year in value in 2018. 2019 – 2023. The quality

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Part of Bruks Siwertell Group of infrastructure is generally lacking in the expanded transport networks. Overall, the Philippines vis-à-vis others in the region, and value of infrastructure construction output refl ecting this, the government is intent on will expand by 9.3% a year in 2019 – 2023, investing in projects to improve the quality of with roads, railways and power infrastructure services, develop a more extensive transport development posting high growth. According network, and support economic growth. The to the Ministry of Transport, capital investment government’s major investment projects fall under of US$48.0 billion will be required to develop its ‘Build, Build, Build’ programme, under which the country’s transport infrastructure during the it plans to invest US$170 billion in developing period of 2018 – 2023. Of the total amount, infrastructure between 2017 and 2022. One of US$30.8 billion will be required for road the main projects under the programme is the infrastructure development, US$5.6 billion for Metro Manila Subway Line 9 construction, which rail infrastructure, US$4.8 billion for aviation started in Q1 2019. The US$7 billion project transport, and US$4.8 billion for marine transport involves the construction of the country’s fi rst by 2023. underground railway system, stretching 36 km. The project is scheduled for completion in 2025, Malaysia and the fi rst three stations are expected to be Although a degree of uncertainty has been completed by 2022. cast over the outlook for investment in infrastructure in Malaysia, following the election Thailand of Mahathir Bin Mohamad in May 2018, The new government in Thailand, which was infrastructure construction works will continue sworn into offi ce in July 2019 after lengthy delays to expand at a healthy pace, averaging 5.9% following the general election in March 2019, is a year in real terms. By 2023, the total value headed by the military-backed Palang Pracharat, of infrastructure construction output will reach with General Prayut Chan-o-cha retaining the US$18.8 billion, up from US$15.2 billion in 2019. position of Prime Minister. GlobalData expects Upon coming to offi ce, the new Prime Minister the new government to continue to invest in major focused on reviewing major infrastructure infrastructure developments promoted by the projects launched by his predecessor, former administration, including new high-speed Najib Razak, owing to concerns that these railways, airports and power generation projects lacked transparency and economic projects. Overall, Thailand’s infrastructure viability, had minimal-to-zero inclusion of local construction output will grow by an annual labour, and weak management. Moreover, average of 4.4% in 2019 – 2023, with railway in order to prevent the country from falling infrastructure recording the highest growth of into debt to the Chinese government, the 6.0%. The majority of investment will be in the government has been focusing particularly railway sector, with Thailand’s capital, Bangkok, on reviewing Chinese-funded infrastructure being at the centre of a number of high-speed projects. In addition to postponing the railway projects that will link Southeast Asia to Kuala Lumpur–Singapore high-speed line, China. GlobalData is tracking US$74.5 billion in July 2018, the government postponed the of railway projects in Thailand; this includes the construction work on the East Coast Rail Bangkok to Nakhon Ratchasima line, which is Link (ECRL), which connects Port Klang on already under construction and will eventually the Straits of Malacca to Pengkalan Kubor in be part of a Thailand to China High-Speed North-East peninsular Malaysia, and is part of Railway Line that stretches through Laos to China’s Belt and Road Initiative. In April 2019, Kunming in China. The pipeline also includes the however, Malaysia’s government reached a Bangkok to Rayong High Speed Rail Line, which new agreement with China Communications will connect airports, ports and manufacturing Construction Company that reduces the centres along Thailand’s Eastern Seaboard. scope and cost of the original project. Thailand is also investing heavily in expanding its According to a statement from the Malaysian mass transit systems in Bangkok. Key new routes Prime Minister’s offi ce, the ECRL project will now that are currently under construction include the be built with an investment of US$10.7 billion Dark Red Line, Phase 1 of which comprises a – nearly two-thirds of the original cost. The ECRL length of 26 km and is scheduled for completion forms a signifi cant part of Malaysia’s railway in 2021. infrastructure project pipeline, which totals US$29.3 billion. Vietnam Vietnam is investing heavily in developing Cambodia infrastructure, with the government being Cambodia has a relatively small economy, and particularly focused on increasing the the low quality of its infrastructure refl ects its country’s power generation capacity and limited economic development compared to

14 World Cement February 2020 most other countries in the region. Nevertheless, all projects from the early stages of announcement the country’s infrastructure construction output and study through to those that are in execution. is growing at a fast pace. Although the annual Vietnam and Indonesia are the leaders in terms expansion in 2019 – 2023 of 9.3% is a marked of having the highest-value project pipelines slowdown from the 18.6%/yr growth recorded of US$300.7 billion and US$264.2 billion in 2014 – 2018, it is still relatively high, and respectively. The other larger markets in the will push annual output up to US$4.9 billion in region are also pushing ahead with major 2023. Much of this investment is being directed infrastructure spending plans. The Philippines, at building or upgrading roads and developing for example, has an infrastructure project pipeline new power generation capacity. According to totalling US$186.4 billion, while Thailand’s totals GlobalData, the pipeline of roads projects totals US$146.6 billion. Although smaller in nominal US$8.6 billion, while that of power generation value terms, the project pipelines in Myanmar, totals US$7.7 billion, with the new power Laos and Cambodia are relatively high when plants adding 4335 MW of generating capacity, compared to the size of their economies. The assuming all projects proceed as planned. pipeline of projects in Laos, for example, is over two times the country’s GDP, while in Cambodia Laos and Myanmar, the pipelines are close to the In Laos, a lack of transport infrastructure and countries’ respective GDP. This in part reﬂ ects insufﬁ cient power capacity continues to be a the relatively low quality of infrastructure in major hindrance to Laos’ economic development. these countries, and the requirement to invest However, the country’s economy has been in developing new power generating capacity, growing at a relatively fast pace in recent years transport networks and utilities. (at over 6%), and the government is investing in new infrastructure, supported by foreign donors About the author and investors. Danny Richards is the Lead Economist at GlobalData Construction, focusing on the market Summary sizing and forecasting for the global construction GlobalData is tracking a pipeline of infrastructure industry, and analysis of construction project projects in the region that totals US$1.2 trillion, for opportunities and risks.

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