News from the Habtoor Leighton Group | December 2013 Rail Edition 2 Akhbar Aldar Contents
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HLG to deliver On the Right Track, HLG awarded AED1.45 billion Akhbar AlDar takes AED600 million Al Habtoor City a look into HLG’s rail Airport Project in Residential Towers strategy Abu Dhabi NEWS FROM THE HABTOOR LEIGHTON GROUP | DECEMBER 2013 RAIL EDITION 2 AKHBAR ALDAR CONTENTS NEWS FROM THE HABTOOR LEIGHTON GROUP | DECEMBER 2013 CHAIRMAn’s MESSage CEO AND MD’s MESSage Rail is a relatively new business to the Middle East and there An efficient and effective rail network is inextricably linked are many aspects of a rail solution here that will be unique with the economic growth and success of any region. to the region, its distinct environment and its challenges. In fact rail, whether used for people-moving or freight, The combined skills and experience our Group offers offers a multitude of benefits – from alleviating road through its related entities, particularly John Holland and congestion; helping to reduce the number of road-related Dragados, puts HLG in a good position to meet the rail- accidents; reducing our carbon footprint; offering a more related challenges the region presents, and offer end-to- cost-effective mode of transport for commuters; and end rail services for our clients. benefiting businesses of all sizes in the ability to easily transport goods and bulk items. The Governments across the GCC region have major expansion plans for their rail networks, with many regional As one of the leading contractors in the region, we have rail networks already under construction. We look forward developed very good relationships with public and private to growing our involvement in this sector – starting in Qatar clients and look forward to partnering with them to deliver where we are delivering the country’s first people mover what will eventually be one of the most highly sophisticated system. rail networks in the world. Riad T Sadik José Antonio López-Monis HLG is one of the leading diversified development for civil and engineering HLG focuses on five core market international contractors in the Middle projects. sectors: Infrastructure, Building, Rail, East and North Africa. Oil and Gas and Mining. The Group also operates a diverse HLG is part of the Leighton Group – range of complementary Associated one of the world’s leading international Businesses, offering clients a one- contractors and the world’s largest stop solution for all their construction, contract miner, with annual revenues development and asset management exceeding USD20 billion. The Leighton needs. Group’s major shareholder is HOCHTIEF from Germany – one of the world’s HLG has an extensive track record in leading providers of construction large-scale projects across the region. Please consider the services. HOCHTIEF is majority owned For more than 40 years it has built a environment before by Spain’s ACS Group – a world strong and loyal client base across both printing this document leader in infrastructure and building the public and private sectors. HABTOOR LEIGHTON GROUP December 2013 3 CONTENTS IN BRIEF 4 HLG to deliver AED1.45 billion 4 Al Habtoor City Residential Towers HLG awarded AED275 million project in Dubai 6 HLG awarded AED600 million airport project in Abu Dhabi 7 John Holland awarded AUD257 million 8 contract at Roy Hill INDUSTRY QUOTES 9 SNAPSHOT 10 7 12 THEME OVERVIEW On the right track 12 INDUSTRY NEWS Saudi Metro projects aim to shift economy beyond oil 16 FOCUS ON THEME 16 20 HLG part of consortium building 20 first People Mover System in Qatar Delivering industry leading capabilities 22 An update on the Middle East railway industry 24 COMPANY NEWS Leighton Holdings reports Q3 2013 28 22 results and reiterates guidance 28 EDITOR’S NOTE In Arabic, Ahkbar AlDar means “news of the house”. It is our corporate magazine, which features the activities of HLG and its related companies. This rail edition takes a closer look into the region’s booming rail sector, and features some of HLG’s projects in this market. We hope you enjoy the read. We welcome your feedback hlgroup.com 4 AKHBAR ALDAR IN BRIEF IN BRIEF A round-up of new developments across the Group. HLG to DELIVER AED1.45 BILLION AL Habtoor CITY RESIDENTIAL TowerS Dubai’s landmark Al Habtoor City is set to become one of the region’s most prestigious destinations and HLG was recently awarded the contract to construct the development’s Residential Towers. HLG recently secured a contract with most prestigious and recognisable the Al Habtoor Group worth AED1.45 developments,” said HLG CEO and billion (USD395 million) for the Managing Director, Mr. José Antonio construction of the Residential Towers López-Monís. project as part of the landmark AED11 billion (USD3 billion) Al Habtoor City Mr. Al Habtoor said, “I have confidence development in Dubai. in the Habtoor Leighton Group. HLG has built some of the most prominent The Al Habtoor Residential Towers landmarks in Dubai and the UAE – project is a mixed-use development including Terminal 3 at the Dubai located immediately adjacent to the International Airport, the world famous proposed Business Bay creek extension Burj Al Arab and The Officers’ Club in (Dubai Water Canal) and includes: Abu Dhabi.” two 75-storey residential towers; one 52-storey residential tower and; a HLG’s associated business, HSSG, is 7-storey podium including basement, currently undertaking the enabling ground floor and five floors of retail and works for the project. The total value of parking. construction, including consultant costs and piling but excluding interior fit-out On an adjacent site, HLG is currently and furniture, is AED1.62 billion. constructing the AED1.9 billion (USD515 million) Al Habtoor City hotel Construction will commence as soon development, which will be the Middle as enabling works are completed and East’s largest integrated resort when it is the main project will be completed 32 completed in 2016. months later. The contract continues a long and successful relationship that HLG has with the Al Habtoor Group, having successfully delivered numerous major projects for the Al Habtoor Group in the past. “This project further demonstrates the confidence Mr. Khalaf Al Habtoor has in HLG and we’re delighted to be selected to build what will be one of Dubai’s HABTOOR LEIGHTON GROUP December 2013 5 “This project further demonstrates the confidence Mr. Khalaf Al Habtoor has in HLG and we’re delighted to be selected to build what will be one of Dubai’s most prestigious and recognisable developments.” hlgroup.com 6 AKHBAR ALDAR IN BRIEF HLG awarded AED275 MILLION project IN DUBAI HLG has signed an agreement worth AED275 million with Jebel Ali Free Zone (Jafza) to construct the next phase of the Jafza One-Jafza Convention Centre complex in Jebel Ali, Dubai. The project site, which is located on HLG first partnered with Jafza, a Sheikh Zayed Road, comprises one of flagship Economic Zones World the Convention Centre’s two twin-tower Group Company in 2007, to commercial buildings, housing more deliver the AED1.9 billion project, than 450 offices and spanning a total which includes a state-of-the- built-up area of 72,200 square metres. art convention centre, hotel, commercial towers and associated HLG’s scope of works includes exhibition and recreation facilities. completion of the fit-out of one of the twin-towers, in addition to completing Work on the commercial tower and associated external road works. external roads has commenced, with completion scheduled for the end The contract with Jafza is of great of 2014. The project director for the significance to HLG, as it represents contract is Rani Badran. a continued partnership with Jafza to conclude one element of what will in time become one of the most successful economic and logistics hubs in the region. “HLG’s scope of works includes completion of the fit-out of one of the twin-towers, in addition to completing associated external road works.” HABTOOR LEIGHTON GROUP December 2013 7 HLG awarded AIrport Project IN ABU DHABI Abu Dhabi Airport Company (ADAC) has signed a contract worth around AED600 million with the Habtoor Leighton Group (HLG) for the construction of infrastructure integral to the Abu Dhabi International Airport expansion. HLG will deliver the project across HLG’s scope of works, which will be multiple work fronts including airside delivered across five work fronts, and landside airport operational areas includes: within the Midfield Terminal Complex construction site, the East Midfield • Backbone infrastructure Terminal area and along the existing installation E11 Highway. • MEP works The contract with ADAC is • Interchange, road and bridge The project aligns demonstrative of HLG’s reputation as construction a preferred international contractor with HLG’s strategy for major clients in the UAE. HLG will also undertake the design and construction of some key of targeting large- “The Group is proud to have been elements of the project. scale infrastructure selected by ADAC to deliver this important project and be part of the “HLG is looking forward to opportunities for development and success of one of delivering this project to ADAC’s government clients. the fastest growing airports in the high standards and continuing our world. strong track-record of developing state-of-the-art infrastructure “The project aligns with HLG’s projects,” Mr Lopez-Monis said. strategy of targeting large-scale infrastructure opportunities for Mr. Tony Douglas, Chief Executive government clients,” said HLG’s CEO Officer of Abu Dhabi Airports and Managing Director, Company, is pleased with ADAC’s Mr. José Antonio López-Monís. decision to partner with HLG to deliver Abu Dhabi Airport’s expansion. “The Habtoor Leighton Group produced a competitive tender. It is clear from their submission, and other projects the Group has delivered, that they have the expertise and experience we need to deliver a world-class facility.” HLG is scheduled to commence work this month, with staged completion anticipated over the next 18-24 months.