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JOHN HOLLAND Contents
NORTHERN Our Business Region P02 Our Organisation SOUTHERN P03 Our Highlights Region P04 Our Board
P06 Chairman’s Report NSW/ACT Region P08 Group Managing Director’s Report P10 Chief Financial Officer’s Report WESTERN Region P12 Our Business 08 P84 Corporate Structure P84 Company Directory RAIL 20 Our Regions TUNNELLING P16 Northern Region
ENERGY & P20 Southern Region RESOURCES P24 NSW/ACT Region
P28 Western Region WATER
Our Specialists MINING P32 Rail
P36 Tunnelling POWER P40 Energy & Resources P44 Water JOHN HOLLAND P48 Mining AVIATION SERVICES 48 P52 Power P56 John Holland Aviation Services COMMUNICATIONS P60 Communications
SAFETY Our Imperatives “Our safety P64 Safety Quality performance is an P68 Quality P72 Environment important barometer ENVIRONMENT of our business P76 Community success” P80 People Community P64 Safety
People
1 ANNUAL REVIEW 2010 Our Organisation
John Holland is committed to being Australia’s leading and most diversified contracting, engineering and services provider. Our unique delivery model of national specialist businesses integrated with the strong civil and building capabilities of our regional businesses provides our organisation with the capacity to deliver complex and challenging major works in a variety of sectors right across Australia. The vision for the business has always been to develop an organisation based on outstanding technical skills, tenacity, innovation and an absolute commitment to people and their careers. John Holland is a wholly owned subsidiary of Leighton Holdings Limited, a company listed on the Australian Securities Exchange.
Our locations Our people John Holland has offices in all metropolitan We employ more than 7,000 people across and major regional centres throughout Australia in a diverse range of project, Australia. At any one time, we are involved operational and support service roles. in over 80 projects across Australia and We recognise that our success is South-East Asia. inextricably linked to the talents and efforts of all our people and, for this reason, Our capabilities we strive to be considered an employer of John Holland has enjoyed incredible choice by our people and in our industry. growth through our operational diversity, We pride ourselves on being a market wide capabilities and industry experience leader in our approach to safety, targeted and we are continually developing these training, career development, staff benefits strengths. Our expertise stretches beyond and remuneration. the traditional civil engineering and building markets to industry leading competencies Our stakeholders in rail, tunnelling, water, energy and Our stakeholders range from clients, resources, power, mining, aviation government and other business partners to services and communications. the local communities we operate in through our ongoing project delivery. Understanding Our operating principles stakeholder needs is critical to the success Our key operating principles – People, of every project we undertake and we Performance, Partnerships and Profit – remain committed to communicating remain a focus in all that we do. We are openly with each of these groups. absolutely committed to our people, see project performance as a fundamental driver of business success and seek to develop mutually beneficial relationships with all our clients and business partners. Through our focus on these principles, our aim is to deliver profit which guarantees the long- term sustainability of our organisation.
2 JOHN HOLLAND Our Highlights
Revenue
NORTHERN $633m Region
SOUTHERN $519m Region
NSW/ACT $290m Region
WESTERN $252m Region
RAIL $537m
TUNNELLING $441m
ENERGY & $425m RESOURCES
WATER $168m
MINING $124m
POWER $114m
JOHN HOLLAND $53m AVIATION SERVICES
COMMUNICATIONS $53m
SAFETY
Quality
ENVIRONMENT
Community
People
3 ANNUAL REVIEW 2010 Our Board
1 2
1 J anet Holmes À COURT AC, CHAIRMAN 2 GLENN PALIN 3 DAVID STEWART 4 HANS OHFF 5 WAL KING AO 6 IAN JOHNSON 7 NICK STUMP 8 BILL BLOKING 4
4 6 7 JOHN HOLLAND Our Board
NORTHERN Region
SOUTHERN Region
NSW/ACT Region
WESTERN Region
RAIL
TUNNELLING
3
ENERGY & RESOURCES
WATER
MINING
POWER
JOHN HOLLAND AVIATION SERVICES
COMMUNICATIONS
5
SAFETY
Quality
ENVIRONMENT
Community
People
8 5 ANNUAL REVIEW 2010 Chairman’s Report
The 2010 financial year was a year of record achievement for John Holland. With turnover of $3.6 billion, over the last 12 months we achieved record net profit of As always, $180 million and, at the end of the financial year, had secured a record level of work in hand of $5.3 billion. Moreover, the last a key part of 12 months have brought a recommitment to our 4P operating principles and the further development of our internal collaborative our success model as a catalyst for our ongoing success. As always, a key part of our success has been the outstanding contribution of all our has been the people. Their innovation, drive and creativity in the delivery of often challenging and complex projects have provided the impetus outstanding for our continuing growth and sustainability as a business. It has been particularly pleasing to see an contribution increasing investment in the development of our people, especially in training programs aimed at nurturing our youngest employees. of all our The development of this group will provide an important base for growth in the years ahead as our industry again grapples with skills shortages. Our National Graduate people Program, our ongoing partnership with Central Queensland University and the Sir John Holland Scholarship, which Yet, while there have been many positive is awarded to two Monash University steps, our performance in this area again engineering students each year, are all fell short of expectations. Sadly, the death great examples of our efforts in this area. of Danny Cheney on 5 December 2009 brought a stark reminder of the dangers I am delighted that we have reaffirmed inherent in much of our work. Danny was our commitment to providing meaningful tragically killed at Kelso in Queensland, employment opportunities for Indigenous causing immense distress across our Australians through the appointment of an organisation. Our thoughts remain with Indigenous Affairs Program Manager. Danny’s family and friends. We have also taken significant steps toward the launch of Career Tracks, our Indigenous The opening of the Sydney Desalination employment program. John Holland has Plant earlier this year was one of many a long history of working closely with local project delivery highlights. The project communities to improve the participation received Infrastructure Partnerships of Indigenous Australians in our workforce. Australia’s 2010 Government Partnership Our work in the early parts of this decade Excellence Award, demonstrating the on the Alice Springs to Darwin Railway set value we place on generating meaningful the benchmark for Indigenous participation partnerships with our clients as a means on regional construction projects. of securing positive project outcomes. Our safety performance is an important Elsewhere, in my home state of Western ongoing barometer of our business Australia, I have watched with interest the success. The implementation of our development of the new State Theatre Safety, Quality and Environment Risk Centre just next to the CBD in Northbridge. Management Program over the last A technically challenging and complex 12 months has seen the early assessment design, the successful delivery of this and identification of risk placed at the project reflects John Holland’s broader forefront of our approach to workplace commitment to innovation and excellence safety. I have been encouraged to witness in project delivery. firsthand the positive impact this has had on the effective management of Our commitment to partnerships as a guiding business principle has also been 6 workplace risks. JOHN HOLLAND
NORTHERN Region
SOUTHERN Region
NSW/ACT Region
WESTERN Region
RAIL
TUNNELLING
ENERGY & RESOURCES
WATER
MINING
demonstrated through the ongoing work Our performance reflects the strength POWER of our project teams in local communities, of the operational leadership within the and our broader corporate support for business. John Holland has a long history organisations in the arts. The Victorian of developing great leaders, and our JOHN HOLLAND Opera, the West Australian Symphony current leadership team is no exception. AVIATION SERVICES Orchestra, through its work at Princess I congratulate Glenn Palin and his executive Margaret Hospital for Children, and the team for their leadership, drive and Australian National Academy of Music commitment. I also extend my thanks to COMMUNICATIONS are just three beneficiaries of our broad my colleagues on the Board and indeed approach to community investment and all those who work for John Holland – engagement. one of Australia’s largest and most diverse construction companies. SAFETY Finally, I am pleased to see our recommitment to the measurement and I look forward to another successful reporting of our environmental performance year ahead. and our ongoing positive interactions with all Quality communities in which we work. In the year ahead, we look forward to the release of our second Corporate Sustainability Report ENVIRONMENT as we take further steps to improve our performance in this area. Janet Holmes à Court AC Chairman The sustainability of our business remains Community a key focus as we move forward and our integrated business model provides a solid foundation for dealing with the impacts of last year’s global financial crisis. We have People ambitious plans for growth over the coming years, including selective international business opportunities, and our strong reputation for specialist engineering has positioned us well in this regard. 7 ANNUAL REVIEW 2010 Group Managing Director’s Report
I’m delighted to report that our business has again performed experience to draw upon – and, crucially, the ability to tap that above expectations. In the context of tightening market skill and knowledge base through effective communication conditions, John Holland has generated the strongest and collaboration. Each one of these projects demonstrates profit result in its history, with $180 million in net profit, and John Holland’s ability to deliver outstanding quality to our completed the year with $5.3 billion worth of work in hand, clients on complex and challenging jobs. compared with $5 billion for the previous year. The operations of our 12 regional and specialist businesses While these numbers are indeed satisfying, the story of 2010 are overseen by four executive general managers: Chris is not just about the financial results we’ve achieved. For me, Evans, Russell Cuttler, Dennis Brewer and Karl Mociak. I’d 2010 has been the year where John Holland has begun to like to take this opportunity to pay tribute to their contribution. tap the real strength of our business: our ability to collaborate Chris, Russell, Dennis and Karl will address their specific and to make the most of the diversity of our businesses and areas of operation in further detail in the following pages. the depth of knowledge of our people. John Holland’s results are delivered by each and every one With over 80 current projects there are too many to detail, of the more than 7,000 staff we have working across more but it is appropriate to recognise a few of our achievements. than 80 projects. Our workforce is highly efficient and highly The Sydney Desalination Plant was of course technically skilled, and we enjoy strong uptake on our many training challenging but is also outstanding for the quality of the and development programs. partnerships developed on that project. The $1 billion plant, The competence, dedication and skill of all our employees which started producing water in January, is Australia’s underpins our ability to deliver outstanding projects to our largest desalination plant and the biggest infrastructure clients. Our success is wholly due to their efforts, and this project completed in NSW in recent years. report is recognition of their success. In Brisbane, work continues on one of the largest transport We have an ongoing commitment to being judged infrastructure projects in the world, the $4.8 billion Airport an ‘employer of choice’ by our people. This year this Link, which will connect Brisbane’s CBD with the city’s commitment has been reinforced by the improvements we northern suburbs and its airport. In Victoria, we cut the ribbon have made to our performance management processes, on the $625 million Sugarloaf Pipeline, and works continue the investment we have made in graduate programs, and on the extremely complex West Gate Bridge upgrade. the maturing of our approach to learning and development. In Western Australia, the State Theatre Centre is nearing Our approach to partnering with the community is completion, and will undoubtedly be a landmark building, multilayered. On every one of our projects, we nominate a an inspiring performance space and a cultural hub for all charity or community organisation with which to work and Western Australians for the future. Finally in the north, the donate either time or funds over the course of the project. 54-metre-high shiploader for the Abbot Point Coal Terminal This engagement is fundamental to our partnering values and in Queensland is an outstanding achievement. The giant the legacy we leave is crucial to our sustainability aspirations. structure was built in our own fabrication workshop in Brisbane, and then shipped over 600 nautical miles up the One area of particular focus for me in 2010 is our coast to Bowen and installed on new berthing structures engagement with Aboriginal and Torres Strait Islander also constructed by John Holland. people. As well as our commitment to the Australian Employment Covenant, we are a foundation Alliance Member What excites me about each of these projects is that they of the Australian Indigenous Chamber of Commerce. each draw upon the diverse and specialist skills and expertise We seek, on a project-by-project basis, to develop real and available from within our business. Complex projects such as lasting opportunities for our Indigenous members of staff. these require businesses with a deep base of knowledge and Working with
8 JOHN HOLLAND
An example of our commitment is John Holland’s work In June, our executive team formalised this approach with the Les Tobler Centre for Construction Training in and established a steering committee to drive the function. Sydney’s Redfern. In April, John Holland’s Water business The committee will report against a number of sustainability hosted 20 Indigenous students from the centre at a site indices across the key reporting areas of environment, NORTHERN visit to the sewerage upgrade works in Richmond-Windsor. social, economic and governance. Region Our NSW Region then extended the invitation and hosted Much more than a compliance exercise, we see this the students at the Energy Australia Stadium in Newcastle. adoption of good sustainability practice as a means Also, a pilot Introductory Rail Skills training course will SOUTHERN to identify risks and opportunities, to enhance our Region be run by the centre using knowledge from within our performance, to reduce cost and to stimulate innovation. business. The feedback from these initiatives I look forward to reporting on our progress in our coming was astounding. Sustainability Report. NSW/ACT Alongside our Indigenous training and development and Region Our business focus remains on growth and sustained work-readiness programs, we are seeking to elevate cultural profitability from both new geographies and new markets. awareness throughout our organisation. The ultimate aim In addition to growth in our traditional markets, we will is to arrive, through increasing our knowledge and empathy, WESTERN be developing opportunities in oil and gas, mining, power, Region to a position of true partnership with Indigenous people and in rail. Looking further afield, we are partnering in and their communities. international markets, including Hong Kong, South-East Throughout the year we have integrated a number Asia, the Middle East and New Zealand. Our reputation as RAIL of programs in safety, quality and environmental risk a preferred partner, based upon engineering and delivery management with the intention of identifying risks as excellence, is underpinning this expansion. early as possible in the business cycle. Additionally, Our strong culture for collaboration combined with the TUNNELLING the transparency of our ‘No Harm’ safety strategy helps diversity of our business will, more than any other factor, everyone feel confident in speaking up to report hazards deliver us further success. It’s simply how we do things or near misses or to call a stop to work if necessary. at John Holland. ENERGY & As a result, I’m pleased to report we have reduced our RESOURCES I’m thrilled to be entering my second year at the helm of this benchmark indicators of Total Recordable Injury Frequency great Australian company. I would like to thank the Chairman Rate (TRIFR) and Severity Rate. Due to the inherent risks and the Board for their support and expert guidance and of the construction industry, we will continue to make safety WATER counsel. I extend warm thanks to the whole John Holland our absolute priority. team, and say on their behalf, that we look forward to Although no serious environmental incidents were delivering more great results to all our stakeholders. recorded during the year, we did have a number of MINING breaches. Our environmental performance did not meet the target we set ourselves. We don’t consider any breach or infringement acceptable and will refocus our efforts in this area in the coming year. POWER Glenn Palin In the delivery of critical infrastructure, we recognise our Group Managing Director operations necessarily have economic, environmental and social impacts. During the year, we have recalibrated our JOHN HOLLAND AVIATION SERVICES approach to measuring and monitoring these impacts through the adoption of a reporting framework for sustainability.
COMMUNICATIONS
SAFETY
Quality
ENVIRONMENT
Community
People At the end of my first full financial year as Group Managing Director, this Review is an opportunity to pause and reflect on the hard work and successes of the past 12 months, at the same time keeping an eye on the tasks that lie ahead. 9 ANNUAL REVIEW 2010 Chief Financial Officer’s Report
Our performance in this uncertain economic climate has been outstanding
6000
5000
4000
3000 $ MILLIONS
2000
1000 JUNE 06 JUNE 07 JUNE 08 JUNE 09 JUNE 10
WORK IN HAND REVENUE
10 JOHN HOLLAND
NORTHERN Region 10 06 01 05 12 10 SOUTHERN Region 11 07 01 06 09 07 04 11 08 03 NSW/ACT 02 04 12 Region 09 03 08
05 02 WESTERN Region
_ Work in Hand _ Operating Revenue RAIL 01 Northern region 15% 01 Northern region 18% 02 Southern region 8% 02 Southern region 8% 03 NSW/ACT Region 11% 03 NSW/ACT Region 14% 04 Western region 4% 04 Western region 7% 05 rail 31% 05 rail 15% TUNNELLING 06 Energy & Resources 5% 06 Energy & Resources 12% 07 tunnelling 12% 07 tunnelling 12% 08 Water 4% 08 Water 5% 09 Power 1% 09 Power 3% 10 mining 5% ENERGY & 10 mining 3% RESOURCES 11 J ohn Holland Aviation services 3% 11 John Holland Aviation services 1% 12 communications 1% 12 communications 2%
Annual Review Capital expenditure and new regard, the stabilisation of WATER The 2010 financial year was investments were funded equity markets has been an a period of consolidation through operating cash flows important step forward, with and existing cash reserves. our investment in rail, mining for John Holland, with the MINING aftershocks following the Gross cash at 30 June and energy and resources global economic uncertainty 2010 was $531 million, total plant and equipment of 2009 countered by a broad assets at $1,319 million and increasing to enable the range of stimulus measures net assets at $463 million. business to benefit from POWER and returning confidence. Our Operating cash flow for the the increased market activity performance in this uncertain year was $118 million. in these sectors. economic climate has been Systems Development Furthermore, our strong JOHN HOLLAND outstanding. Revenue levels financial position will support AVIATION SERVICES During the year we for the year were consistent our drive into overseas commenced a company- with the prior year and work markets, enabling us to wide systems and business in hand remained high, a partner with key local COMMUNICATIONS process improvement benefit of the diversity in our companies in New Zealand, program. This strategic multidisciplined contracting, South-East Asia and the initiative will ensure the engineering and services Middle East to bid on business continues to be SAFETY business. emerging projects. supported by new technology Strong Balance and enhanced capability in From this position of strength, Sheet the areas of IT infrastructure we look forward to another Quality We again achieved strong and services, project delivery successful year ahead. operational performance systems and information throughout the year and management. delivered quality outcomes ENVIRONMENT for our clients. Robust risk Platform for Growth management processes The outlook for growth are consistently applied remains positive for the 2011 Darryn Ray Community throughout all phases of the financial year. Tendering Chief Financial Officer project delivery cycle and activity has returned to pre- have driven a successful 2009 levels and the size of financial outcome. Revenue projects coming to market is People for the year, including also increasing. The strong our share of joint ventures balance sheet provides and associates, was significant opportunities for $3.6 billion, and we enter John Holland, and a stable the 2011 financial year with platform to support our
$5.3 billion of work in hand. growth strategies. In this 11 ANNUAL REVIEW 2010 Our Business
Chris Evans Regional Business Overview
At $1.7 billion, revenue generated by our regional businesses remained steady for the 2009-2010 financial year. Given the level of uncertainty in domestic markets, and the ongoing effects of the global financial crisis, including the cancellation or deferral of several key projects, this strong result has been extremely pleasing. Our traditional strength in infrastructure project delivery, coupled with our growing expertise in managing multi- agency relationships and in delivering diverse and complex projects, have meant our business has performed well in these tough conditions. Sectors where we have seen particular strength include health and education, oil and gas and defence. In conjunction with our specialist businesses we are also seeing an upsurge of activity in rail and water projects, especially in Victoria. Results in our Northern and Southern regions stand out, with key projects ranging across large scale civil infrastructure, building works across the regions for the federal departments of Defence and Education, Employment and Workplace Relations, and numerous water and energy resources projects. This year, we secured our first major rail trackwork contract in Queensland, and again successfully joined forces with our Rail business in Victoria to win significant works at South Morang and Craigieburn. In our Western Region we have again seen strong performance in the building market, including the iconic new performing arts venue, the commencement of the expansion of the Joondalup Health Campus, delivery of 118 schools as part of the federal government’s Building Russell Cuttler Specialist Business Overview
John Holland’s specialist businesses contributed We also have emerging opportunities in the burgeoning over $1.3 billion revenue, which reflected a continued liquefied natural gas and coal seam gas markets, which consolidation and development of our collaborative together with the construction of the onshore gas plant business model, as well as the launch of our at Devil Creek will further increase our foothold in international diversification. the sector. The same factors affecting our regional businesses have had Tunnelling saw the commissioning of the two largest TBMs a dampening effect on our sector-based businesses, with at work in Australia for the Airport Link project in Brisbane. the additional challenge of the proposed mining resources Good progress was made on Northern Sewerage Project tax and 2010’s federal election bringing further uncertainty Stage 1 and Stage 2, with anticipated early completion of to our clients in the energy and resources sectors. those works. The marine crossing of the Yarra River, with the completion of the first leg of tunnelling, advanced Melbourne Our specialist businesses have continued to focus on Main Sewer Rehabilitation to an early stage of completion. complex engineering projects. Energy & Resources, Power, Tunnelling and Water, in collaboration with our partners, Our performance at Isaac Plains Coal Mine has continued have delivered such diverse projects as Abbot Point to develop since our mobilisation there in October. Shiploader and marine structures, the West Gate Bridge The business’s strong productivity focus has meant strengthening, Tasmania’s Waddamana transmission line, it has exceeded targets in the last four months. the Melbourne Main Sewer Rehabilitation, the Sugarloaf A major milestone in our geographic diversification Pipeline and the Sydney Desalination Plant. program was achieved recently when we were awarded Energy & Resources was rebranded during the year to the $660 million Sludge Treatment Facility in Hong Kong, better reflect our focus on this sector. Recent wins at Cape with partners Leighton Asia and Veolia Water SCL. Both Lambert, and from the Newcastle Coal Infrastructure Group, Tunnelling and Water have worked in collaboration with cement John Holland as the leader in the construction of Leighton Asia on a number of projects, and Tunnelling has marine infrastructure for the energy and resources sector. worked in Singapore with Leighton International. Significant 12 JOHN HOLLAND
NORTHERN Region Regional Business Overview
SOUTHERN the Education Revolution program, and redevelopment in the developing oil and gas industry both in Central Region works for Qantas at the Perth Airport. Queensland and in the North West of WA, as well as associated growth within the broader resources market The market for the NSW/ACT Region has however been as the export economy improves in this area. NSW/ACT significantly tougher this year. Notwithstanding this, we have Region had good success in the rail market on works in Cronulla Looking ahead, there are still challenges to be overcome and Auburn, and with our Water business on the award- as a result of the lag effect of deferred projects, and we winning Sydney Desalination Plant. Particularly pleasing expect it will take another six to 12 months to fully recover WESTERN has been our dominance in the civil dams market, with momentum. As always, our focus must remain on delivering Region works progressing across several sites in Canberra, the exceptional performance on all our projects and in bringing Central West and New England. Our building team has outstanding value to our clients through our diversity of
also been recognised for the quality of its works at the skills during this challenging time. RAIL National Portrait Gallery in Canberra, and is now adding Overall, it is becoming increasingly clear that the quality of awards for the Sydney Opera House Accessibility our relationships, our depth and diversity and our ability to & Western Foyers Project. partner will drive the continued success of John Holland’s TUNNELLING Particularly noteworthy through this year is John Holland’s regional businesses. continuing and successful relationship with the Department of Defence. Nationally, John Holland has been named ENERGY & as one of Defence’s top ten contractors and is the only RESOURCES construction contractor on this list. Given the department’s reliance on quality and performance, it is tremendously rewarding to be recognised with repeat business in this WATER important market. Chris Evans The oil and gas market remains a primary focus for us, Executive General Manager – Regional Businesses both in Western Australia and Queensland, presenting a MINING remarkable opportunity for growth. During the year, we completed contracts at the Pluto Liquefied Natural Gas Project in the Pilbara region, and we are also working
closely with our Energy & Resources business at Apache POWER Energy’s onshore gas plant at Devil Creek near Karratha. Looking to the future, there are emerging opportunities
JOHN HOLLAND AVIATION SERVICES Specialist Business Overview
opportunities also exist in New Zealand as the result of COMMUNICATIONS our strategic partnership with Australasian civil contracting company, Fulton Hogan.
There is little doubt that projects are becoming increasingly SAFETY complex. This environment brings out the strength in our business, and the ability of our collaborative model to deliver better value to our clients. While the near-term Quality looks somewhat flat this financial year, there are strong opportunities emerging in the second half of the financial year and in the 2011–2012 financial year, which will see our
specialist businesses working in collaboration with both ENVIRONMENT John Holland regional businesses and international partners to deliver strong and record results.
Community
People Russell Cuttler Executive General Manager – Specialist Businesses
13 ANNUAL REVIEW 2010
Dennis Brewer Strategic Projects Overview
John Holland’s Strategic Projects Group was formed in This investment is being driven by ageing Australian late 2008 to guide and facilitate long-term growth in the infrastructure. Recent research indicates a current age business. The group is focused on analysing emerging of 20.1 years compared with the long-term average of opportunities to determine their appropriateness for John 18.6 years. Further, research by Engineers Australia and ANZ Holland, as well as assessing the company’s capacity Bank estimates an investment of $100 billion per year would to undertake them. The group also aims to ensure the be required over the next six years to address the imbalance. smooth transition from the tender to project delivery Moving forward, despite a reduction in the number of major phases on major and strategically important projects. projects being undertaken, there are a number of priorities Major works for the Strategic Projects Group in 2009-2010 for John Holland. The South West Rail Link, 23 kilometres included the Sydney Desalination Plant, a great example of of greenfield rail line in Sydney, will move forward in the next a collaborative approach to major project delivery, both in year and, over the next three to five years, we may also see terms of our external and internal joint venture partners. additional investment in the expansion of major road arterials The group’s involvement with Brisbane’s $4.8 billion Airport such as an extension to the M5 East. In 2012, the North West Link also continued throughout the year and we expect to Rail Link is also expected to move forward. deliver the first part of this project – the Airport Roundabout The outlook in Victoria is also positive, with the Regional Rail Upgrade – approximately 12 months ahead of schedule. Link project to be a major focus of infrastructure investment Notwithstanding the completion of the Sydney Desalination in the next few years. The WestLink tunnel is also expected Plant and ongoing major water infrastructure works around to come to market in 2012, as a major part of the Victorian Australia, 2010 has seen a shift in focus from water security Transport Plan. Similarly, the outlook for resources-based rail projects to transport projects. Significant investment in new and port infrastructure in Western Australia and Queensland transport infrastructure is expected in the next few years, is also strong. with a major emphasis on rail projects. Rail in both NSW and Victoria has been singled out as an investment priority.
Karl Mociak Rail Overview
By the end of financial year 2009–2010, John Holland’s Rail business had consolidated its position as Australia’s premier rail contractor and maintainer. A surging market for rail infrastructure has resulted in revenue growth of 39% over the previous year. These results are reinforced by a robust forward order book of $2.8 billion. We are extending our business offshore. Last year we established offices in New Zealand and Hong Kong, and together with well-established partnerships, we are looking to take advantage of the resurgence in rail in those regions and around the world. Critical to our success is our regional support structure. Our 29 offices across every state are the backbone of our business. This structure provides the presence our clients are looking for in their markets. Our clients also demand a reliable partner, with a strong balance sheet, who they know will deliver. We recognise that success depends on our people. This year an additional 330 people were welcomed by the Rail business, with plans to increase that number again in the coming financial year. Not only do our new starters comprise a mix of talent and senior expertise but they bring energy, youth and enthusiasm to our vibrant business.
14 JOHN HOLLAND
NORTHERN Region Strategic Projects Overview
SOUTHERN In South Australia, the $812 million South Road Superway Region remains a focus. The project is the largest ever single investment in a South Australian road as well as the state’s most complex engineering road construction project. NSW/ACT John Holland also remains engaged in the ongoing tender Region process for the delivery of the National Broadband Network One of the key benefits of the Strategic Projects Group has WESTERN been its capacity to allow John Holland’s individual business Region units to stay focused on short-term project opportunities and more immediate project delivery priorities. The group’s focus
will remain on major opportunities for John Holland, as we RAIL look to achieve significant growth as a business in the next few years.
TUNNELLING
ENERGY & Dennis Brewer RESOURCES Executive General Manager – Strategic Projects
WATER
MINING
POWER
Rail Overview
JOHN HOLLAND We also invested heavily during the year in training and was engaged to run Melbourne’s rail network – the second AVIATION SERVICES development and in increasing career opportunities for our largest metropolitan commuter rail network in Australia. people, ranging from the development of an apprentice These new relationships and capabilities illustrate our ability mentoring program to supervisor workshops and increased to innovate and to return value to our clients. COMMUNICATIONS technical training. Governments around the world are recognising rail as a key The year saw a dramatic improvement in our safety component in sustainable social infrastructure. We are well performance, with a reduction of the Total Recordable positioned to take advantage of this renewed interest. SAFETY Injury Frequency Rate (TRIFR) by almost half. This was The outlook for our Rail business in 2011 is particularly achieved through a sustained and targeted focus across strong. With good growth in the first quarter, we will achieve the business. The team is now on target with its goal to double digit growth in 2011. lead the industry in this area. Quality John Holland has Australia’s largest fleet of rail maintenance and construction plant and equipment. Some recent
acquisitions include some of the most modern pieces of ENVIRONMENT technology in the world. Karl Mociak Going forward, we will continue to build our capability, Executive General Manager – Rail expand our product offering, and take advantage of a range Community of emerging markets within our industry. We’ll continue to grow our signalling and overhead business – new areas of business we have developed in the last 18 months. As a result, John Holland can now provide the full range of rail- People specific requirements including track, signalling, overhead, engineering, design, and feasibility studies. In the near term, we will also pursue opportunities in asset management – along the lines of the Metro Trains Melbourne consortium. During the year the consortium 15 ANNUAL REVIEW 2010
‘Strength through diversity’ continues to provide John Holland with a considerable edge in the market
16 JOHN HOLLAND
Northern Region
Darra to Springfield transport corridor, Brisbane
17 ANNUAL REVIEW 2010
John Holland’s Northern Alliance Projects all reaching On track for an successes. The Southbank Region continued its successful completion this early finish – Darra Student Village was handed steady growth through year, which has assisted to Springfield over in December 2009, 2009-2010, emerging in securing Queensland’s Transport Corridor following on from the from the global financial immediate water future. Excellent work continues tremendous achievement of crisis in a strong position, on Stage 1 of the Darra the Southbank Institute of capitalising on state Creating to Springfield Transport Technology and marking the government infrastructure infrastructure Corridor Project, with the end of our successful tenure spending and federal through team setting its sights on an in the Southbank precinct. government stimulus collaboration early finish. All rail bridges packages, which were We also continue to work and the majority of road Schools already underpinned by the in collaboration with our bridges are now finished, benefiting from progression of several colleagues from Energy and the team has completed Building the key major projects. & Resources to deliver the Richlands railway station Education Revolution infrastructure vital to our The BER project team is The ‘strength through and commenced track resources sector, such progressing well, having diversity’ created by our laying. The project has also as the Abbot Point Coal completed works on several regional business partnering achieved some excellent Loading Facilities. of the 47 schools secured with our national specialist results in safety, particularly as part of the Building the businesses continues to in the area of Lost Time Injury Making inroads in Education Revolution Project, provide John Holland with (LTI), recently clocking up Australia’s largest which generated a combined a considerable edge in over 1,000,000 man-hours infrastructure value of $110 million for the the market, allowing us to LTI-free. project business. successfully secure and Our civil construction Rail partnership deliver major infrastructure teams have performed secures the Recognition for projects throughout well throughout the year, Middlemount Rail Indigenous employee Queensland and the consolidating our reputation Spur Project training program in Northern Territory. as a key player in the Rail has emerged as a Darwin Through our work with our delivery of major road and significant market, and The completion of the colleagues in John Holland’s rail infrastructure. Work is the Northern Region is Tanami Road and Plenty specialist Water, Rail, progressing well on the at the forefront, having Highway Upgrade provided Tunnelling, Power, Mining, $4.8 billion Airport Link, successfully secured the a number of highlights, and Energy & Resources Northern Busway and Airport first private rail project in with our training program businesses we continue to Roundabout Upgrade Queensland. Partnering with for Indigenous employees provide superior construction Projects – together, Australia’s our Rail business, we have recently recognised at the skills and value-for-money largest infrastructure project. successfully secured the Civil Contractors Federation solutions for all our clients, A number of the project’s $104 million Middlemount Awards in Darwin. taking John Holland’s major milestones have been Early Rail Alliance, and will Northern Region from achieved this year, including work with Middlemount Coal Reaping the rewards strength to strength. reaching the halfway point and GHD to construct a of long-term in the construction program, 17-kilometre rail spur to the relationships Vital Projects Help the first tunnel breakthrough, Middlemount Mine in Central Our long-serving relationship Secure Queensland’s completion of the Airport Queensland. with SkyCity continues, with Water Future Roundabout Upgrade, the successful completion Work with our Water and the launch of Australia’s Building on our of the Eastern Ground Floor business has paid significant largest tunnel boring success in Southbank Expansion as well as the dividends with the Merrimac machine. Our building teams also award of a new contract for Wastewater Treatment Plant, continue to perform well the Resort Groundworks. Murrumba Downs and with a number of notable 18 Gold Coast Desalination JOHN HOLLAND
NORTHERN Region
Left: Delivering key Receival Station Facilities Abbot Point Coal Terminal, General Manager projects for Defence Upgrade and the Robertson North Queensland Our relationship with the Program of Works Stage 1 Middle: Gavin Stubbs Airport Link, Department of Defence Redevelopment. Brisbane Right: Revenue remains strong as we Gallipoli Looking to the future Barracks, $633 million continue to deliver key Enoggera, projects at RAAF Base The strength of our unique Queensland Amberley and Gallipoli business delivery model Key Projects Barracks at Enoggera in and the commitment of our Airport Link, Northern Busway Queensland. After the people to delivering innovative and Airport Roundabout Upgrade; successful completion of the solutions for our clients Darra to Springfield Transport C-17 Heavy Infrastructure has seen John Holland’s Corridor Project Stage 1; Enoggera Project earlier in the year, we Northern Region consolidate Base Redevelopment; Gold Coast are now focused on delivering its position as the leading Desalination Alliance; C-17 Heavy our two remaining projects building, civil and engineering Lift Facilities RAAF Base Amberley; at RAAF Base Amberley – contractor in north-eastern SkyCity Casino Redevelopment; the Relocation of the Australia. Enhanced Land Force Stage 2B; 21st Construction Squadron, Southbank Student Village; Multi Role One of the challenges we and the Additional Rifle Helicopter; Robertson Barracks. will face moving forward is a Flight Facilities. shortage of skilled resources. Milestones However, our increase in Our presence at the Gallipoli Completion of Merrimac Wastewater training and development Barracks in Enoggera will Treatment Plant, Murrumba Downs programs, as well as a strong continue for some time, Waste Water Treatment Plant and focus on staff retention, has despite the completion of the Gold Coast Desalination Alliance us well placed to overcome the Multi Role Helicopter in conjunction with Water; Abbot this issue. Project and the QMBA Point in conjunction with Energy Award-winning Enoggera There are positive signs & Resources; Southbank Student Redevelopment Stage 1. The looking forward, with a Village; Enoggera Redevelopment Planning Phase Agreement return to ‘boom’ times on the Stage 1; Multi Role Helicopter for the Enhanced Land Force back of increased resource Project; C-17 Heavy Lift Facilities (ELF) Stage 2B Project was demand, the re-entry of RAAF Base Amberley; SkyCity signed in early 2010, and private business and strong Eastern Ground Floor Expansion; we have now entered the growth of the Queensland HMAS Coonawarra Fuel Facility; delivery phase of the project. economy. Excellent growth Tanami Road and Plenty Highway; This $770 million project is opportunities exist in and Little Mindil Stage 3. the largest building project transport and resources Defence has undertaken, and infrastructure, and health and will see the redevelopment education. Key to our strategy of the Gallipoli Barracks over will be managing sustainable the next four years. growth while reinforcing our Our good work with Defence role as a major provider of continues in the Northern engineering infrastructure Territory. The HMAS projects and cementing Coonawarra Fuel Facility our position as a tier one Project reached completion builder. Maintaining a focus earlier this year, and we on meeting and exceeding were also awarded two new community expectations will contracts – the Shoal Bay be crucial to capitalising on these opportunities. 19 ANNUAL REVIEW 2010
2009-2010 saw John Holland’s Southern Region posting its strongest revenue result on record
20 JOHN HOLLAND
Southern Region
West Gate Bridge, Melbourne
21 ANNUAL REVIEW 2010
The growth of John most infamous traffic Melbourne’s Hill Hospital Early Works, Holland’s Southern Region bottlenecks – the Springvale metropolitan rail the Cardinia Desalinated continued in 2009-2010, Road rail crossing at network under Water Integration Project, with the business posting Nunawading. The highly expansion with and the Craigieburn Train its strongest revenue complex grade separation landmark South Maintenance Facility. result on record. The result project established a new Morang Rail reflected the outcome of benchmark for technical Extension New water works our commitment to solid excellence, as well as The year’s strong under way and sustained partnerships stakeholder relationships performance was also Our expertise in the water with our clients. and traffic management. supported by a number of sector was also recognised, new project wins, several with the Barwon Water Sugarloaf Pipeline Easing commuter of which are testament to a Capital Works Program Project delivered pressure on The burgeoning rail renaissance. awarded to John Holland under budget and West Gate Bridge The most significant of and GHD, in alliance with ahead of schedule Significant progress these projects was the Barwon Water. The alliance The year marked the was also made on the landmark South Morang will deliver more than completion of the strengthening of the Rail Extension, which 100 medium-sized projects $625 million Sugarloaf West Gate Bridge, to represents the first major over four to six years. Pipeline Project linking accommodate a fifth lane expansion of the Melbourne the Goulburn River to in each direction. The work metropolitan rail network in Building our capacity the Sugarloaf Reservoir, being undertaken on the more than three decades. to self-perform which was delivered under bridge represents a major The $650 million project is We have continued to budget and five months engineering achievement, being delivered through an strengthen our self-perform ahead of schedule. The and the project is widely alliance partnership with the capacity within the business, alliance with Melbourne regarded as one of the most Department of Transport, now employing around Water, SKM and GHD, complex projects currently Metro, VicRoads and 600 trades and workforce has since received multiple underway in Australia. AECOM. employees across our awards in recognition of projects. We are also its achievements. Successful New projects won working to maintain a high completion across The $200 million Western level of apprentices. While Springvale Road diverse projects Highway-Anthonys Cutting sub-contract partnerships rail separation: Other projects that were Realignment in alliance with will continue to underpin an exercise in brought to successful VicRoads and AECOM to our projects, we believe excellence completion in 2009-2010 realign a dangerous section the capacity to self-perform The business, in alliance included the state-of-the-art of the Western Highway got works is vital to provide with VicRoads, Metro, UTAS Medical Sciences 1 underway, and is expected value for our clients, KBR and Arup, also building in Hobart, and the to be completed in early establish clear benchmarks successfully eliminated Laverton Rail Upgrade in 2012. The business also for safety, quality,
22 one of Melbourne’s Melbourne. began work on the Box environment and community JOHN HOLLAND
SOUTHERN Region
Left: management, and to Building our Western highway – Anthonys Cutting General Manager maximise the opportunities presence in South Realignment, that exist within the complex Australia Melbourne David Moran Middle: environments in which we In South Australia, our Sugarloaf Pipeline Project, victoria operate. Revenue delivery of the student Right: Nunawading $519 million accommodation project for Station, Strengthening our Urbanest, as well as a major Melbourne commitment to the tendering effort for the South Key projects Murray region Road Superway project, Wodonga Rail Bypass; Barwon Water John Holland’s commitment provided the platform for Capital Works; Brighton Bypass; to the Murray region establishing a permanent Laverton Rail Upgrade; Melbourne continued with our presence in that state. Airport Terminal Two Expansion; Albury-Wodonga office Melbourne Main Sewer Replacement; delivering the Wodonga Rail Looking to the Northern Sewerage Project; 140 North Bypass, part of the South future Terrace; South Morang Rail Extension; Improvement Alliance. John Holland’s unique Springvale Road Rail Separation; Together with our NSW/ACT capabilities to meet the Sugarloaf Pipeline; UTAS Co-location; Region, we are committed needs of the resurgent Western Highway-Anthonys Cutting to long-term growth in the rail sector position the Realignment; West Gate Bridge region. Region for another strong Strengthening Project; Northern performance in the year Hospital Short Stay Unit & Mental Continued growth in ahead. Preparations for Health Project; Cardinia Connection Tasmania other emerging trends in Alliance. We achieved sustained the marketplace, including growth in Tasmania, building growth in the health sector, Key milestones on strong local partnerships, place the business in a Completion of the Sugarloaf Pipeline an excellent track record position of strength for Project and the Springvale Road Rail and our decision to establish further expansion. Separation Project. a permanent Hobart Award of the South Morang Rail office. We also continued Extension Project and the Craigieburn our close collaboration Train Maintenance Facility Project. with John Holland’s Rail business, working together on the successful delivery of the $164 million Brighton Bypass project – a road and rail freight hub in outer Hobart.
23 ANNUAL REVIEW 2010
A solid year of operation, with an emphasis on securing strategic projects and strengthening relationships
24 JOHN HOLLAND
NSW/ACT Region
Woolooware Station, Sydney
25 ANNUAL REVIEW 2010
‘Our driver continues to be that John Holland is the company clients think of when they seek innovation, certainty of delivery, value for money, quality, professionalism and honesty in business dealings.’
NSW/ACT Region General Manager, Rob Monaci
The NSW/ACT Region Successful contracts to upgrade Keepit have progressed well, with enjoyed a solid year completion of Dam and Chaffey Dam in the the pump station completed, of operation with an Cronulla Line Tamworth area, and currently the Googong Dam Spillway emphasis on securing Upgrading and working on planned projects nearing completion and several strategic projects Duplication delivers in the EOI stage. excavation and quarry works and strengthening additional projects at the enlarged Cotter Dam Also in NSW, construction relationships with now underway. The Cronulla Line Upgrading of the $64.2 million Mardi key clients. and Duplication Project for to Mangrove Link is Relationship with Partnerships formed with the Transport Construction underway for the Wyong Authority achieved practical Defence continues our specialist businesses Shire and Gosford City to flourish continue to provide a strong completion. Subsequently, Councils, with construction Defence continues to be an competitive advantage the John Holland team went of a pipeline, pump station important area of operation in the marketplace, on to win the $73 million and inlet works. for NSW/ACT’s building combining construction Liverpool Turnback Project, Practical completion of division with contracts and management expertise and is currently short-listed the $1 billion Sydney successfully secured and with in-depth understanding for the South West Rail Line Desalination Plant was underway for the Kapooka of our clients’ operational Project. achieved on time and on Enhanced Land Force (ELF) requirements. Back to work with budget for Sydney Water, and Singleton ELF Projects. The NSW/ACT Region the RTA with NSW Premier, Kristina pioneered the introduction The business also secured Keneally, activating first Award-winning of John Holland’s Safety, its first job for the Roads and water in front of a large projects Quality and Environment Traffic Authority since 2004, media contingent. John Holland was recognised Risk Management Program, for its building and project winning the first stage works John Holland achieved and continues to champion management expertise, contract for the Newcastle further recognition of its its benefits, attracting strong winning a number of awards Inner City Bypass. ongoing work in delivering interest from client and both in Sydney and Canberra Sydney Water’s Priority industry partners alike. Expertise in water in 2009-2010. The Sydney Sewerage Program, with the delivers consistent Opera House Accessibility & award of the latest stage of workflow across Western Foyers Project team works planned for Appin, the state was awarded the prestigious south of Sydney. John Holland continues New South Wales to assist State Water in In the ACT, the $550 million Professional Excellence achieving its dam safety works with ACTEW, as part in Building Award by the upgrade program, winning of the Bulk Water Alliance, Australian Institute of Building 26 JOHN HOLLAND General Manager Rob Monaci
Revenue $290 million
Key Projects Bulkwater Alliance; Hunter8 Alliance; Energy Australia Stadium Stage 3 Project; Sydney Desalination Plant; National Portrait Gallery; Priority Sewage Program; Sydney Opera House; Cronulla Line Upgrading and
Duplication Project; Keepit Dam; Mardi NSW/ACT to Mangrove Pipeline; Kapooka ELF. Region
Milestones Completion of the Sydney Desalination Plant Separable Portion 1 (125ML/day) in January 2010 and Separable Portion 2 (250ML/day) in May 2010; completion Left: Cotter Dam, Australian Capital of the Cronulla Line Upgrading and Territory Duplication Project in April 2010; Middle: julian pavey, site receipt of TOC approval for Bulkwater engineer, energy australia Cotter Dam, receipt of TOC approval stadium, Newcastle for Hunter8 Stage 2. Right: Premier of NSW Professional Excellence in NSW, Kristina Keneally, at the commissioning Building Award by the Australian of the Sydney Desalination Institute of Building for the Sydney Plant, Kurnell Opera House Accessibility & Western Foyers Project.
(AIB), while awards won for and increased involvement ‘preferred contractor’ with and the City of Dreams the National Portrait Gallery of staff and subcontractors a number of key projects Project in Macau. The future in Canberra include the in identifying risks prior to due to be awarded in early highlights a move to smaller Master Builders Association works commencement. 2010-2011. projects, aside from rail National Award for Public projects such as the South Buildings over $12 million Facing a challenging Strength through West Rail Line, for which and the Concrete Institute’s future collaboration the Region is tendering in Excellence in Concrete The industry has entered Collaboration has continued conjunction with our Rail Award. a very competitive phase, to be a driving factor in business. with tightening margins and tendering and undertaking This move toward smaller Other works decreased opportunities business in the Region, with projects requires a different John Holland’s Newcastle in building and civil strong working relationships focus and structure, and office secured the third engineering, requiring John existing between NSW/ACT NSW/ACT Region has stage of the Energy Australia Holland to be able to tender, and specialist businesses implemented appropriate Stadium for Hunter Venues, secure and deliver smaller such as John Holland’s measures to respond to and NSW/ACT Region was projects. Rail and Water businesses. this change. Diversity will also one of three companies New opportunities are In the civil infrastructure remain a key strength of the short-listed for construction also close to fruition with market, tier one contractors business, with the immediate of the Sydney Metro Project John Holland’s Energy are increasingly tendering future promising a small before its withdrawal by the & Resources and Power directly against smaller number of projects in a large NSW Government. businesses, and the Region contractors in order to number of market sectors. continues to form strategic secure work. Focus on safety joint ventures with external With the new market The Safety, Quality Building projects in NSW/ parties that will enable us dynamic, the business and Environment Risk ACT have slowed with to offer clients the best and imperative for the NSW/ACT Management Program rollout the cessation of private most economical solutions Region is to remain agile, in the NSW/ACT Region funds and a push toward for project delivery, in both with a mix of road, rail, water has been well accepted a managing contract civil and building areas. and resources infrastructure and is now an integral part delivery method, resulting in and both government and of the business, with staff reduced turnover, however Looking to the private sector clients, as acknowledging the program John Holland’s business future opposed to relying on a as ‘the way we do things development activities and In recent years, the business particular market sector, around here’. The program strong focus on customer has enjoyed involvement in to deliver a consistent also delivers the added relationships has seen large projects such as the flow of work. benefit of risk identification the Region nominated as Sydney Desalination Plant 27 ANNUAL REVIEW 2010
A culture of continuous improvement has returned sustained growth for John Holland in Western Australia
28 JOHN HOLLAND
Western Region
State Theatre Centre of Western Australia, Perth
29 ANNUAL REVIEW 2010 The 2009-2010 financial new construction and Cementing our seen the construction and year has delivered the refurbishment works have dominance in health refurbishment of major strongest ever financial transformed the 75-year-old construction infrastructure at state return for Western base, significantly enhancing With health construction primary schools across Region. This is significant its operational capability identified as a core market Perth’s western and northern considering the economic and improving the overall segment for the Region, the suburbs. This vital building climate during this period, environment. It is expected business has successfully initiative, delivered under very and represents sustained that works for this project developed strategic tight construction deadlines, growth for John Holland’s will be completed by first partnerships with key will provide improved business in Western quarter 2011. players in the delivery of education facilities for the Australia. healthcare infrastructure. The next generation of young Creating a new home Western Australians and The Region has firmly re- significant redevelopment of for the arts in WA is due for completion by established John Holland’s Joondalup Health Campus Another project that has early 2011. premier position in the for Ramsay Health Care continued to develop over local market with tier one and the Government of the past year is the State Capitalising clients and has continued to Western Australia continues Theatre Centre of Western on emerging develop and capitalise on its to progress, with works on Australia, which is being opportunities key competitive advantages. schedule for completion by undertaken for the state in energy and A culture of continuous early 2013. John Holland government’s Department resources improvement, particularly in has also been awarded the of Culture and the Arts. In collaboration with project delivery, has delivered contract to deliver a new This landmark building John Holland’s Energy & tangible benefits across all purpose-built health campus boasts an array of Resources business, the aspects of the business. in Albany, which will become architectural and engineering Region has successfully The Region’s commitment the hub for health services features, which showcase capitalised on emerging to safety has returned a in Western Australia’s Great the excellence of design opportunities in both the positive result over the past Southern region, further and construction skills oil and gas and resources year, with excellence in safety reinforcing our dominance and capabilities available markets in Western performance an ongoing in health construction in in Western Australia. Australia. Key projects imperative for the business. Western Australia. include the construction The theatre will be home to Building the of the substation and field Redevelopment of both the Black Swan State Education Revolution auxiliary room buildings RAAF Base Pearce Theatre Company and the for young western for Woodside’s Pluto LNG The redevelopment of Perth Theatre Company, australians Project on the Burrup RAAF Base Pearce for the and will provide the people Peninsula, and the supply Department of Defence of Western Australia with an Delivery of a significant share and installation of structural has been a key project inspiring venue offering the of the Perth metropolitan area mechanical steelwork and for the Region over the latest theatre technology works for the federally funded platework for the stockyard past 12 months. The from around the world. Building the Education Revolution program has and sampling stations for
30 BHP Billiton Iron Ore’s Rapid the value of John Holland’s Looking to the future Western Australia over the JOHN HOLLAND Growth Project 4 at Newman internal collaborative model Going forward, the Region medium to long term. Hub. The Region is also for clients looking to develop will continue to capitalise Opportunities in the focused on emerging building complex construction on the key competitive building sector will consist opportunities associated projects. advantages it has developed predominately of commercial with major iron ore and oil in the Western Australian facilities, with the Region and gas developments. With Creating sustainable market, striving to position continuing to capitalise on a solid foundation in the partnerships the business as the most its capability and experience delivery of major building in Indigenous competitive multidisciplined in the delivery of hospitals, works in the metropolitan engagement engineering and building prisons, airports and public area, the business has There is significant contractor in the west infrastructure works, in further extended its building opportunity for Indigenous and our clients’ preferred addition to non-process capability in the delivery engagement on our contractor for all disciplines. infrastructure projects which of remote non-process north-west projects. This form part of major resource infrastructure, delivered is a natural evolution for Future opportunities in developments. within a challenging and the business, based on the engineering sector in heavily regulated resource the nature of the work Western Australia will focus The Region will strive to environment. we undertake and the on the delivery of integrated maximise opportunities remote areas in which we packages, in collaboration through its diversity, with WESTERN The current delivery of Region operate. Implementation with our specialist key internal partnerships Apache Energy Limited’s of a dedicated Indigenous businesses, predominantly benefiting from emerging Devil Creek Development Engagement Strategy for major resource opportunities in the Project for the construction in Western Australia, developments (iron ore and resources sector, new rail of a new onshore gas which seeks to create oil and gas) in the north-west infrastructure and greater plant, and the permanent partnerships that support the of the state. This sector will market penetration in the process and non-process sustainability of Indigenous continue to be the driving power and communications buildings required on the site, communities through the force behind sustained sectors. highlights John Holland’s provision of support, training, growth for the Region, as it unique ability to merge highly education and employment is in this market segment specialised construction opportunities, has seen the from which the greatest services with complex civil launch of the John Holland number of potential projects works in a single integrated Work Ready Program – are likely to emerge in package. The recent Nyoongar for Work – which award of Rio Tinto’s Cape provides accredited training Lambert Port B Project, for in the construction industry the construction of a new and the opportunity of port facility adjacent to the employment with John existing Cape Lambert port Holland in a variety of roles. General Manager terminal further highlights Adam Harry
Revenue $252 million
Key projects RAAF Base Pearce Redevelopment Stage 1; State Theatre Centre of Western Australia; Joondalup Left: Jim Speir, Welding Health Campus Redevelopment; Supervisor (left) and Hans Devil Creek Development Project; Willrath, Piping QC Supervisor (right) Building the Education Revolution. at the Onshore Gas Plant, Devil Creek, Western Australia Milestones Right: Joondalup Health Completion of Pluto LNG Project Campus, Western Australia Onshore Process Buildings, Rapid Growth Project 4 (Newman Hub), Qantas Domestic Terminal Interim Expansion Works, Hollywood Private Hospital Redevelopment, and the Central Law Courts Refurbishment. Commencement of works on the Joondalup Health Campus Redevelopment, Devil Creek Development Project and Building the Education Revolution. Award of the East Kimberley Development Package, Albany Health Campus Redevelopment and Cape Lambert Port B Project.
31 ANNUAL REVIEW 2010
The rail industry is experiencing unprecedented growth in both public and private expenditure
32 JOHN HOLLAND
Rail
Melbourne metropolitan train network, Victoria
33 ANNUAL REVIEW 2010
During the financial year Kong and United Group, structuring of the business, – increasing tender budgets 2009-2010, Rail has actively John Holland is responsible we expect the current to support growth. pursued project-based work for the entire metropolitan significant growth phase to Our purpose is to establish as well as expanding the train network: 4,000 total continue. ongoing streams of work business’s capacity. staff; all train operations, Our strategy includes to offer continuity of drivers and station staff; The overhanging effects of consolidating our existing revenue, thereby providing signalling; rolling stock; the global financial crisis of business offering, a counterbalance to the projects; and all maintenance 2009 continued to forestall diversifying our product fluctuations of major projects for track, civil, and overhead. some mining-based projects base, entering into new in the normal course of the during the year. However, Acquiring the most markets and market business cycle. funds from the federal up-to-date equipment segments, and pursuing government’s stimulus potential strategic Operating safely During the year, and in line package directed to shovel- acquisitions. in Rail with our capability expansion ready projects saw increased Creating a safe workplace is strategy, we acquired the The key elements of our spending in rail overall. an essential element of our most modern tamping strategy are: core values, and our highest production machine in the John Holland – consolidating our core priority. Safety is more than a world, a Dynamic Tamping becomes a rail operation compliance issue; it is about Express O9-3X. network operator – targeting strategic major developing and maintaining This year, we commenced We have also acquired two projects and developing a safety conscious culture an important new strategic Pem Lem turnout installation winning strategies for each throughout the company. relationship with the machines. We are the only prospect Training and support by beginning of the Metro Trains company in Australia with two – pushing into new markets the company in this area is Melbourne (MTM) franchise. such machines in operation. – developing new services, deemed mission critical. In this venture, John Holland including in procurement has become an operator, Growing the – investing further in plant The growing market rather than our traditional business through and equipment for rail role of contractor/maintainer. consolidation and – continuing to grow and The rail industry, both in diversification Australia and internationally, John Holland is an equity develop our people With a combination of strong is experiencing participant in MTM. In joint – effectively managing our market growth and strategic unprecedented growth 34 venture with MTR from Hong client relationships Left: JOHN HOLLAND Kirrawee Station, Sydney
Middle: Maitland to Whittingham, Hunter Region, New South Wales
Right: Jason Gray (left) and Keith Scott (right) at Trackwork Services Alliance, New South Wales
RAIL
in public and private Looking to the future expenditure on large-scale Over the last three Executive General Manager infrastructure projects. years, John Holland has Karl Mociak implemented a strategy that Capital works programs in Revenue Australia have largely been has seen its Rail business $537 million driven by private funding grow threefold. This financial year has seen strong and in hard minerals and coal Key projects industry supply chain. sustained growth. We are In conjunction with Northern Region: However there is a growing now mapping the next five Middlemount Coal; Hunter8; Track realisation that congestion years, and expect to move Services Alliance; and Reliance on our roads and public Rail into another substantial Rail, Liverpool. In conjunction with transport in major cities is growth phase. Southern Region: South Morang; reaching crisis point. As a Our success is underpinned Brighton Bypass Tasmania; MTM result, public funding on not just by a growing market, Tie Renewal, and minor works. In metropolitan passenger but by our deliberate move in conjunction with Western Region: railway lines is increasing. to new markets and sectors WNR Maintenance; PTA, Kalgoorlie; In response to urban and increasing our portfolio and RGP5. congestion issues, a number of offerings to our clients. of upgrade and extension Milestones projects are underway or Improvement in safety performance about to commence across in Lost Time Injury Frequency Rate all states. (LTIFR) of 2.02; takeover of Melbourne BIS Shrapnel predicts metropolitan network on 1 December the average annual work 2009 by Metro Trains Melbourne completed in rail during Consortium; establishment of office 2012-2013 will be 25 per cent in Hong Kong; recruitment of 330 above the previous five years. people; increase of forward order In total, it anticipates that book by over 39 per cent in 2009- activity in rail construction in 2010, establishment of forward order Australia will not peak until book of $2.8 billion. the latter end of this decade. 35 ANNUAL REVIEW 2010
With a proud heritage spanning over 40 years, John Holland continues to be Australia’s pre-eminent tunnelling business
36 JOHN HOLLAND
Tunnelling
Michael Sutton, Shift Engineer, monitoring in the westbound TBM tunnel at Airport Link, Brisbane
37 ANNUAL REVIEW Left: 2010 Northern Sewerage Project, Melbourne
Middle: Breakthrough at Melbourne Main Sewer, Melbourne
Right: Peter Lilley, TBM Operator (left) and Trent Tremain, Erector Operator (right) inspecting the segment erector plate sealing strip on TBM “Sandy” at Airport Link, Brisbane
General Manager Rob Muley
Revenue $441 million
Key Projects Airport Link; Northern Busway and Airport Roundabout Upgrade; Melbourne Main Sewer Replacement; Northern Sewerage Project Stage 1; Northern Sewerage Project Stage 2.
Milestones Fourteen Tunnel Boring Machines procured over the last five years; Northern Sewerage Project has completed six out of the seven Tunnel Boring Machine drives ahead of schedule; Melbourne Main Sewer Replacement Project – the first Tunnel Boring Machine drive successfully completed; Airport Link Project – 16 roadheaders operating concurrently; Airport Link Tunnel Boring Machines successfully launched.
38 JOHN HOLLAND
TUNNELLING
With a proud heritage Continuing strong completing a further five across different market spanning over 40 years performance tunnel drives, using earth sectors. This requires high of continuous tunnelling, John Holland’s Tunnelling pressure balance TBMs levels of collaboration with John Holland is the business has continued its as well as hard rock TBMs. our clients, our regional pre-eminent tunnelling strong performance during The last drive of the businesses, and other business in Australia. 2009-2010. In Melbourne, 12.5 kilometres of tunnels to specialist businesses such The business boasts the four Tunnel Boring Machines be excavated for this project as Water and Rail. The same largest dedicated team of (TBMs) have been operating is scheduled for completion collaborative model is also technical experts of any concurrently across the in October 2010. implemented in opportunities contractor in the country. offshore. We will continue Melbourne Main Sewer The Airport Link Project to work with Leighton Asia John Holland’s Tunnelling Replacement Project and is also progressing well, targeting opportunities in business continues to build the Northern Sewerage reaching 50 per cent Hong Kong, and pursue on its reputation as the Project, with all tunnel completion in June. strategic partnership leading provider of innovative drives completed ahead The project has currently opportunities in New Zealand underground solutions. of schedule. 16 road headers in with Fulton Hogan. With a specialist in-house operation, with a total of Crossing the Yarra team, we continue to lead 17 road headers planned River Looking to the future the underground industry at its peak – a worldwide For the year ahead, our vision as the partner of choice by The Melbourne Main Sewer record. The project has also will focus on diversifying our offering clients extensive Replacement Project’s taken delivery of two TBMs specialist skill set further, knowledge and experience crossing of the Yarra measuring 12.5 metres building on our reputation in all methods of tunnelling River using a staged wet in diameter and weighing as the leading Australian and complex geology across cofferdam approach is around 3,600 tonnes, which tunnel constructor. Coupled all industry sectors. making good progress with are the largest TBMs ever with our collaborative model minimal disruption, and is used in Australia. A key focus of our business scheduled for completion across regional and specialist is our staff. John Holland’s well ahead of program. Current market business units, we will tunnelling business continue our proud history of The river crossing and Throughout the year we currently employs over over 40 years at the forefront completion of the first tunnel have continued to grow our 700 staff across Australia of tunnelling in Australia. drive demonstrates our strong relationships with and internationally. We We aim to continue to be highly innovative approach key business partners, both continue to make significant the partner of choice for and depth of experience in locally and internationally. investments in our people underground works with local complex geology. The collaborative model and the technologies that and international partners, has proven to work well for support them to ensure that Tunnel drives ahead and the employer of choice the Tunnelling business, we stay at the forefront of of schedule for both current and future given that underground underground project delivery personnel in the underground The Northern Sewerage construction typically forms and provide value-added construction industry. Project (NSP) has continued key elements of projects solutions to our clients. to perform strongly this year 39 ANNUAL REVIEW 2010
This year we have confirmed our position as a market leader in marine infrastructure projects
40 JOHN HOLLAND
Energy & Resources
Abbot Point Coal Terminal, North Queensland
41 ANNUAL REVIEW 2010
It has been another focused our operational HSR collegiate has been 18 months to complete and significant year of growth teams on knowing their instrumental in ensuring was transported some 604 for John Holland’s responsibilities and effective employee nautical miles by sea to Energy & Resources obligations, focusing on engagement in all of Abbot Point for installation. business. In the 2009- the management of our operations and we It was delivered on time 2010 financial year, we high risks, maintaining are nearing completion and on budget, and used have consolidated our governance of our systems of our high risk activity resources available in position as a market and procedures and management program which Queensland’s manufacturing leader in the delivery of ensuring effective employee has produced procedural sector. The completed marine infrastructure engagement on all our and competency standards, project showcases the multi- projects in the resources projects. We have celebrated training packs and audit engineering capabilities sector and increased our a vast improvement in tools for the key high risk within John Holland that can penetration into the oil and our statistical safety activities in our business. deliver complex structural, gas sector. The business performance, with our Total mechanical and electrical has positioned itself Recordable Injury Frequency Servicing our coal installations. well on many of the new Rate (TRIFR) reducing by export clients The completed $238 planned liquefied natural 50 per cent over this period. In Queensland, we million Abbot Point Coal gas (LNG) projects in This result can be directly successfully completed the Terminal X50 Marine Western Australia and the attributed to the G6 initiative $65 million Abbot Point Coal Expansion Project involved emerging coal seam gas and the positive engagement Terminal X25 Expansion the construction of a (CSG) and LNG projects by all our project teams on and Conveyor Upgrade second 500-metre-long in Queensland whilst this important process. early in the financial year, berth and a 3-kilometre- also maintaining focus and completed the $52 Our G6 safety leadership long associated marine on the resurgent minerals million X50 SL2 Shiploader. team continues to jetty conveyor and transfer sectors of coal and iron Working with our Northern lead the way by clearly tower. This project will ore in Queensland, Region, we also successfully setting behavioural and further expand the capacity New South Wales and completed the X50 Marine performance standards of North Queensland Western Australia. Expansion works on behalf and verifying compliance Bulk Ports Abbot Point of the North Queensland and effectiveness of the facility to 50 million tonnes Building a ‘No Harm’ Bulk Ports. business implementation of our per annum to serve the risk management system Weighing more than growing commitments The past 12 months have through monthly safety 1,380 tonnes and standing of Queensland’s coal seen the embedding of our valuations and reviews. over 54 metres high at exporters. G6 safety initiative across Our support and completion, the X50 SL2 our operations. We have 42 development of our Shiploader took more than Left: JOHN HOLLAND Onshore gas plant, Devil Creek, General Manager Western Australia
Middle: Brendan Petersen Worsley Efficiency and Growth Alumina Refinery, Bunbury, Revenue Western Australia $425 million Right: Jim Speir, Welding Supervisor (left) and Hans Willrath, Piping QC Key projects Supervisor (right) at the Onshore Abbot Point X25 Expansion and Gas Plant, Devil Creek, Western Conveyor Upgrade; Abbot Point Australia Coal Terminal X50 SL2 Shiploader; Abbot Point Coal Terminal X50 Marine Expansion; Rapid Growth Project 4 (Newman Hub); Devil Creek Development Project; Worsley Efficiency and Growth Alumina Refinery Project; Sugarloaf Pipeline Project; West Gate Bridge Strengthening Alliance; Springfield to Darra Transport Corridor (Horizon Alliance).
Milestones Completion of the Abbot Point Coal Terminal X50 SL2 Shiploader and Abbot Point Coal Terminal X50 Marine Expansion. Launch of a joint venture partnership with Fugro Seacore.
ENERGY & Awarded the contract to deliver Rio RESOURCES Tinto’s Cape Lambert Port B Project.
Through the year there have in this area involves work regional businesses continued to proactively been a number of significant at over 20 facilities, with throughout the year. position the business for project delivery milestones. the majority of work being We continue to work new work and growth in undertaken in an operating with our Southern Region both the minerals and oil Expanding our brownfield environment. business on the technically and gas sectors. The past footprint in WA Our scope includes installing complex West Gate Bridge 12 months has seen a Construction continues at modules weighing up to Strengthening Alliance resurgence of the Australian the $160 million Devil Creek 400 tonnes and over in Victoria, and with the energy and resources Development Project in 75 kilometres of process completed award-winning sectors and we are well Western Australia, with our piping. An extensive amount Sugarloaf Pipeline Alliance. positioned to take advantage project team successfully of this work has to be done We have also partnered of these improved market completing bulk earthworks on plant shutdowns. with our Northern Region conditions. The rebranding and the pouring of business to deliver of the business has been In addition, John Holland foundations for process construction services on the well received by our clients was recently awarded modules, piperacks and Springfield to Darra Corridor and the broader energy and a $276 million marine equipment. Other works Project in Queensland. resources sector alike, and contract, which forms safely completed include the our diversification strategy part of the early works for John Holland’s Energy successful transportation is developing to plan. Rio Tinto’s Cape Lambert & Resources business and installation of Port B Project in Western launched a new business approximately 150 piperack Looking to the Australia’s north-west. partnership with international and process modules. future The project, to be delivered marine drilling contractor Piping, electrical and Going forward, our strategic as a collaboration between Fugro Seacore to focus on instrumentation installation is focus is to position ourselves John Holland’s Energy & emerging work in the marine well underway and gas plant to participate in planned Resources business and the construction sector. The construction is in line with developments in the coal civil construction skills of our partnership combines John the target of first gas in the and iron ore sectors in Western Region business, Holland’s proven experience second half of 2011. Queensland, New South highlights the value of in civil, marine and Wales and Western Australia Significant progress has our internal collaborative specialised construction with as investments come been made at the Worsley model for clients looking to Fugro Seacore’s specialist online, and to successfully Efficiency and Growth develop large and complex seabed drilling and marine capitalise on emerging Alumina Refinery Project, construction projects. construction capabilities. opportunities in the coal near Bunbury, Western Elsewhere, Energy & seam gas and liquid natural Australia. The construction Current position Resources has worked gas markets in Queensland package that is being John Holland’s Energy & closely with John Holland’s and Western Australia. undertaken by John Holland Resources business has 43 ANNUAL REVIEW 2010
Our team leads the way in expert client management and is widely recognised for its reliable delivery
44 JOHN HOLLAND
Water
Sydney Desalination Plant, Kurnell, New South Wales
45 ANNUAL REVIEW 2010
are new relationships to forge following a number of amalgamations in water authorities, and winning work has been made more challenging with a number of new entrants providing competition in our market.
New clients and awards This was also a year of great recognition for our business. A key highlight of the year was winning the Barwon Water Alliance – a program that will run for a number of years. Barwon Water is a new client, and the Barwon Water Alliance will create enormous opportunity for John Holland in the Barwon/ Geelong region of Victoria. Other highlights include winning the John Holland National Safety Award for PSP 3 Towns, the Sir John Holland Award for Community Engagement for the Sydney Desalination General Manager Plant, and the John Holland Greg Taylor Environment and Heritage Award for Sugarloaf Pipeline, Left: A specialist business Revenue Sydney a joint venture with Southern Desalination in a market that has $168 million Plant, Kurnell Region. In addition, six of Right: experienced strong growth Murrumba Downs the 15 Safety Achievers Advanced Water in recent years, Water has Key projects Treatment Plant, recognised by our annual Queensland been more involved in joint New projects: Barwon Capital awards program were from ventures than any other Program Alliance; Mardi to our Water projects. Mangrove; South Caboolture business at John Holland. Sewerage Treatment Plant; Notwithstanding recent A textbook Hawkesbury-Nepean Irrigation growth, difficult market example of project Meter Installation; Murrumba conditions prevailed this management Downs AWTP Operations financial year, leading to The commissioning of the and Maintenance; Melbourne a reduction in turnover Sydney Desalination Plant Desalination Integration Alliance. for the period. However, has provided a textbook Ongoing projects: Bulk Water truly outstanding project example of client and Alliance; Gold Coast Desalination performance meant the project management. Alliance; Murrumba Downs Waste business was able to meet Throughout, we made use Water Treatment Plant Alliance; its targets and profit result. of our expertise in Water, Priority Sewerage Program Alliance. Tunnelling and the NSW/ Market shifts ACT Region to find solutions Milestones The last year has seen to problems and to maintain Practical completion achieved on a number of shifts in our strong relationships at Sydney Desalination Plant, Sunset traditional markets of water various levels with our client, Coast Water Alliance, North Head and wastewater treatment Sydney Water. Whether PARR Alliance, Coffs Infrastructure plants, recycled water plants, the question at hand was Alliance, and Merrimac Waterfutures desalination plants and technical, operational, Alliance. Extended works contract on transfer systems. Priorities in environmental, or one of Priority Sewerage Program Alliance, capital works programs are communications, we had a and introduced Cost Performance changing, with governments network of associations and Reporting (CPR) to our regional spending funds in areas relationships within Sydney partners. outside water. Projects Water that allowed us to are typically smaller, there work through each issue 46 JOHN HOLLAND
that arose. With this level affords the use of our skills of insight, we were able to beyond the boundaries of quickly find solutions to suit traditional water projects. all our stakeholders. Improved safety Diversifying our performance business Safety performance In our business planning improved in Water with our in 2009, we foresaw a Total Recordable Injury tapering off in spending in Frequency Rate (TRIFR) water programs. To address down from 21 to 16. While this we embarked on a this is good progress, diversification program and there is still room for another highlight for 2009- improvement. During the 2010 was the successful year the business worked development of that hard adopting new safety, program. Our task was to quality and environment risk diversify in both discipline management processes on and geography. To that end, every project, undoubtedly we commenced bidding contributing to the improved operations and maintenance overall safety and business projects, irrigation and coal performance. seam methane projects. To expand our geographical Current market range, we also commenced As we look to the next two bidding in Hong Kong. As to three years, our traditional WATER a result of these strategies, markets will continue to we are now operating and exhibit the challenges already maintaining the Murrumba mentioned – changing Downs Advanced Water priorities in capital works Treatment Plant, we are programs by our government installing flow meters in the clients, and a general trend irrigation sector and we have toward smaller projects years’ maximum, program focusing on replenishing recently announced success overall. alliances typically run for our forward order book and on the Hong Kong Sludge However, our diversification four or more years. One establishing a strong two to Treatment Facility bid. strategies will enable us to example is the Priority four-year horizon of work. The value of Water’s grow as a business. While Sewerage Program with Diversification is key to our commissioning expertise continuing to support our Sydney Water, which has growth and we have already is recognised by other traditional markets, we’ll been running for seven years. had success in transferring businesses, and Water has work to grow further in Longer-term associations our business excellence into worked extremely closely new markets of irrigation, such as these provide more newer areas of the market. through the year with other consistent revenues and operations and maintenance, Water use and security will businesses in John Holland, great opportunities for staff and coal seam methane continue to be a headline particularly Northern, NSW/ on those projects to hone water treatment. We will issue in our communities. ACT and Southern Regions. their skills and develop their also be pursuing other Desalination is only one One example is the recent professional relationships international opportunities, part of the solution to Energy & Resources project over a longer period of such as the Hong Kong providing assurance of a at Abbot Point, which saw time. In the next six to Sludge Treatment Facility. sustainable water supply. a Water staff member 12 months, there are We expect focus will now seconded for three months to A Trend of alliance a number of program return to recycled water assist with the commissioning programs opportunities we will bid for. plants and ensuring that of the shiploader. Another interesting transfer systems and sewage development is the trend Looking to the future Through our activities in treatment systems are using back to alliances. Where the Despite tightening market Hong Kong this year, we the best available technology. market has been dominated conditions, we expect to have also developed a recently by design-and- grow our revenue in 2011. John Holland’s Water good working relationship construct contracts or The coming financial year business has a solid with Leighton Asia and construct-only contracts, will be a foundation year for foundation, with a great team we are currently looking the last 12 months have future years. As desalination of people, good business at partnering with other seen clients start to roll projects are being completed practices and strong results. Leighton group companies. projects into programs. around the country, we These are the factors that The practice of collaboration, Where design-and-construct have seen some decline in will underpin our success both within the business and contracts might be two our work in hand, therefore, in the future. within the Leighton Group, in the coming year we are 47 ANNUAL REVIEW 2010
It has been a year of consolidation for John Holland’s Mining business, with the business now well positioned for future growth
48 JOHN HOLLAND
Mining
Isaac Plains Coal Mine, central Queensland
49 ANNUAL REVIEW Left: 2010 Isaac Plains Coal Mine, central Queensland
Middle: Isaac Plains Coal Mine, central Queensland
Right: Isaac Plains Coal Mine, central Queensland
General Manager Russell Cuttler
Revenue $124 million
Key projects Isaac Plains Coal Mine – Isaac Plains Coal Management Pty Ltd
Milestones Awarded $348 million contract for the provision of mining services to the ‘Plains’ pit of the Jellinbah Coal Mine. Successfully established operations at Isaac Plain Coal Mine, achieved no lost time injuries, introduced Mine Safety and Health Management System.
50 JOHN HOLLAND
It has been a year client engagement will 19.7 million cubic metres of We have also taken a of consolidation for commence in the back half overburden and coal moved. number of positive steps John Holland’s Mining of 2010, with mobilisation This reflects the collaborative forward in the area of training business. A successful of equipment to site approach with our client and and development, with the demobilisation at BMA’s expected to be completed the significant investment in integration of a new human Blackwater Mine, the in April 2011. effective mine planning in the resource management commencement and early stages of mobilisation. system to accurately track streamlining of operations Strong ongoing Our performance has ongoing training and address MINING at Isaac Plains Coal Mine relationship at Isaac been further boosted by specific mine safety issues. and our appointment to Plains Coal Mine in investment in new GPS Our investment in people deliver a $348 million Queensland technology for key pieces has us well placed to contract for the provision Elsewhere, a strong of plant and equipment. further improve our safety of mining services to the relationship has been performance and meet the ‘Plains’ pit of the Jellinbah developed with Isaac Plains Outstanding results labour needs of continued Coal Mine were three of Coal Management and in our safety business growth as we the highlights. We have their joint venture partners performance move forward. also seen additional over the last 12 months, There have also been investment in new plant as we also commenced several important milestones Strengthening and equipment over the operations under a new reached in the area of safety, market conditions last 12 months, helping 33-month mine operations with no lost time injuries With the consolidation to further position the contract at Isaac Plains recorded for the second of our new work at Isaac business for future growth. Coal Mine near Moranbah, year running in maintenance Plains and a market buoyed Queensland. In the last and no lost time injuries by increasing commodity New agreement with year we have successfully at Isaac Plains since prices, there are a number Jellinbah Coal Mine mobilised to site, established commencement. Our total of brownfield and greenfield in Queensland John Holland as the Coal recordable injury frequency mining projects expected Central in our success over Mine Operator, developed rate of 7.86 is also well below to emerge across Australia the last year has been a new and introduced the Isaac the industry standard. This over the coming year. four year agreement with Plains Mine Safety and is a significant achievement Drawing on our internal Jellinbah Mining Pty Ltd for Health Management System following two demobilisation collaborative model as services to the ‘Plains’ pit of and undertaken a broad operations and one important value add for the Jellinbah Coal Mine in review and streamlining mobilisation operation in prospective clients, as we Queensland. The contract will of operations to improve the last two years. move ahead a focussed and include mine planning and productivity and efficiency targeted approach to new Further, the successful design, along with drill and and promote safety across work will drive the growth integration of John Holland’s blast, overburden removal, our full mine operations. of our business in both new Safety, Quality coal mining, coal quality coal and metalliferous and In terms of performance, and Environment Risk management, coal crushing, underground and open there have been many Management Program pit water management and cut mining. highlights at Isaac Plains. has been of particular environmental reporting Productivity and service benefit in further enhancing services. To ensure a smooth reliability again increased our commitment to our transition of services, early over the year, with ‘No Harm’ vision. 51 ANNUAL REVIEW 2010
Our Power business delivered transmission lines in Queensland, NSW and Tasmania
52 JOHN HOLLAND
Power
Strathmore to Ross Transmission Line, Queensland
53 ANNUAL REVIEW 2010
The team delivered high voltage transmission line projects for Powerlink in Queensland, TransGrid in NSW and Transend in Tasmania. The Power business also successfully delivered a substation upgrade for Horizon Power in Western Australia. Power will also undertake to design and construct an open cycle gas-fired power station, Braemar-3, in southern Queensland, if the project proceeds. During the year the business was selected as one of three contractors on the Powerlink Panel for transmission line projects. The term of the panel is three years with a strong likelihood of one to two projects being bid each year. We have worked closely through the year with our other businesses, particularly Southern Region, Northern Region, Communications and Energy & Resources. We are currently developing substation capability with Energy & Resources. Finally, in an exciting development, the business was short-listed as part of a consortium for the Solar Flagships program.
Current position Current and potential markets for our Power business are transmission lines, large substations, utility-sized gas-fired power stations, industrial-sized gas-fired power stations, large wind farms and solar power plants. The transmission line and large substation sector continues to be our core business and is where we have a strong track record of delivery.
Current market Our clients are typically state-owned corporations with some private sector clients such as BHP Billiton, Rio Tinto and Origin Energy. 54 JOHN HOLLAND
All images: POWER Going forward, Power will for 2011 is for a tightening Waddamana to Lindisfarne General Manager continue to examine possible market and we expect Transmission Line, projects overseas. We revenue to be slightly down. Tasmania John Barraclough have recently concluded The key factor underlying negotiations with Fulton the challenging outlook is Revenue Hogan to work together in uncertainty in the market. $114 million New Zealand, in conjunction Due to the lag effect of the with other specialist global financial crisis, many Key Projects businesses. projects have been deferred. In conjunction with Northern We expect this will continue Region: Strathmore to Ross 275 kV Developing our through the current financial Transmission Line Project. In people year (2010–2011), however conjunction with Southern Region: The business is undertaking we expect the financial year Waddamana to Lindisfarne 220 kV extensive training in its ending 30 June 2012 to be a Transmission Line Project; and wages workforce to upgrade significantly stronger one. Sugarloaf Pipeline. skills. During the year the In the coming year, our focus business has undertaken Milestones will be on transmission and intensive competency Completion of the Wollar to Wellington substations. Geographically assessments and 330 kV Transmission Line Project and our general focus continues certifications of its people the Network Interconnection Works to be Queensland and and conducted a high level for West Pilbara Power Project. NSW. There are a number of of training. All of our staff will smaller works in Tasmania. Selected as the preferred contractor undertake certificate training. on the Braemar-3 Power Station. New Currently the business has Western Australia is an work for OPGW TransGrid Alliance in 40 Certificate II-qualified emerging market for us and conjunction with Communications. riggers, and ten to the level we are vigorously pursuing of Certificate III. opportunities with our Western Region business. Looking to the future Revenue remained steady this year. The likely outlook 55 ANNUAL REVIEW 2010
JHAS is established as Australia’s most comprehensive independent aircraft maintenance provider
56 JOHN HOLLAND
John Holland Aviation Services
Line maintenance services, Melbourne International Airport
57 ANNUAL REVIEW 2010
Despite the ongoing and continues to enhance Current position aircraft maintenance economic impact of the competitive advantages JHAS has secured services. JHAS has broken global financial crisis in core business areas, substantial new agreements new ground with the on the aviation industry and is seeing continued for the maintenance of establishment of additional and the negative impact strong revenue growth in Ground Support Equipment services for key clients this has had on airline core business segments. (GSE). Of particular note including Virgin Blue, Jetstar maintenance requirements The focus on supporting is the comprehensive fleet and Tiger Airways. in 2009-2010, John key aircraft types and core management and GSE Throughout 2009-2010 Holland Aviation Services services, the depth of our maintenance agreement JHAS has continued to (JHAS) has continued to facilities and the continued with Menzies Aviation for expand our customer base grow and strengthen key focus on staff development all equipment in Australia of international airlines, with elements of our business. and training to enhance skills and in New Zealand, which the addition of Singapore has JHAS well positioned for The domestic aviation facilitated the expansion Airlines, Singapore Airlines sustained revenue growth. industry has exhibited signs of GSE services and the Cargo, Royal Brunei, Korean The continued refinement of recovery, with aircraft fleet establishment of Airlines and Indonesia of our strategy means we numbers continuing to grow, a maintenance facility AirAsia, and has continued are ready to respond to and robust forward orders in New Zealand. to support increasing flying projected changes in the from airlines for additional volumes from the existing market, leveraging our Growing aircraft numbers aircraft. customer base. business strengths and and the maturing of the The aircraft maintenance competitive advantages. Australian base of operating The establishment of environment remains highly aircraft has provided a aircraft components- competitive in the region; strong demand from all specific maintenance however JHAS maintains JHAS domestic airline agreements has opened 58 customers for overnight JOHN HOLLAND
JOHN HOLLAND AVIATION SERVICES General Manager Andrew Henderson
Left: several opportunities to to JHAS approvals, the Alex Chau, Revenue Aircraft provide an Australian- commissioning of aircraft Mechanical Engineer, Aircraft $53 million based maintenance painting capability, and Maintenance Services, solution across various the addition of a repair Melbourne International Key projects Airport component product lines and overhaul capability for Virgin Blue Overnight Maintenance; for Virgin Blue and other a variety of high-turnover Middle: Blaise Hilty, Menzies Ground Support Equipment Mechanical customers. JHAS is already aircraft components. Licence Aircraft Engineer, Line Fleet Management and Maintenance seeing the benefits of these Maintenance JHAS is established as Services, (Australia & New Zealand); Virgin support arrangements with Melbourne the largest and most International Blue Aircraft End-of-Lease Major consistently increasing Airport comprehensive independent Heavy Checks and Aircraft Painting volumes. Right: Blaise Hilty, and the first Embraer E170 & E190 aircraft maintenance Mechanical Licence Aircraft Heavy Checks; Pacific Blue Heavy provider in Australia. With a Engineer, Line Looking to the Maintenance broad range of experienced Services, Maintenance Checks. future Melbourne staff, we are well positioned International To position JHAS for the Airport to continue to enhance Milestones future, we have continued our service offering and to Secured additional maintenance to expand the depth and exceed our forecast contracts with Virgin Blue for Overnight capabilities of our service growth for the future. Maintenance and various components, offering to our customers. substantially expanded Overnight This includes responding Maintenance capacity to meet demand to a substantial increase across multiple customers including in overnight maintenance Virgin Blue, Jetstar and Tiger Airways demand, adding the and secured Airbus A330 accreditation. Airbus A330 aircraft type 59 ANNUAL REVIEW 2010
Communications embarked on ambitious plans to grow our business
60 JOHN HOLLAND
Communications
Communications tower, new south wales
61 ANNUAL REVIEW LEF T: 2010 RAPID GROWTH General Manager PROJECT 4, WESTERN AUSTRALIA
Dennis Brewer Middle: Mining Rail Communications in Revenue Western Australia Top RIGHT: $53 million National broadband network, Tasmania Key Projects BOTTOM RIGHT: National broadband National Broadband Network network, Tasmania Tasmania – Stage 1 Backhaul Network Cable Installation; National Broadband Network Tasmania – Stage 1 FTTP Network Design & Construct; Optus – National Construction, Installation & Commissioning Services; Nokia Siemens Networks – VicTrack GSMR; AirServices Australia – Navex 2A.
Milestones Extended relationship contract with TransGrid. Established joint venture with Conneq Infrastructure Services to pursue the $43 billion National Broadband Network Mainland 8 year+ Project. Extended transport (roads and rail) sector to air, with a strategically important win on AirServices’ Navex National Project.
John Holland’s Early position on NBN Project. In support of this unique service offering to Communications business We took an early position on strategy, John Holland the market on a range of embarked upon 2009– the NBN Tasmania projects, has formed a joint venture key projects. 2010 with ambitious demonstrating technical with Conneq Infrastructure plans, supported by key capability, knowledge, Services to pursue the NBN Growth Strategy strategies to grow our innovation and proactive Mainland Project. Our business growth business substantially stakeholder engagement – strategy in 2010–2011 both in geography, a strategy which positioned Strategic will focus on the following capability and revenue. us strongly in the market partnerships target market sectors, We aimed to achieve to deliver highly visible and with vendors and aligned to public and business-critical wins on a critical wins on the first two suppliers private infrastructure range of projects including Australian NBN projects In line with the John Holland communications investment the NBN Tasmania, NSN within Tasmania. Although collaborative model, over the in Australia: VicTrack, TransGrid and we faced challenges year we placed a high level – NBN/digital economy Optus contracts. on the NBN Tasmania of focus on further – transport (road, rail, air) developing relationships There was a renewed focus Project toward the end – utilities (energy, water). with many of our internal on operational delivery, of the financial year, the John Holland partners We will maintain a high resourcing and rapid ramp- performance of our business bringing high-end technical level of focus on further up in order to enable our across the year remained contributions to a number developing relationships business to mobilise for strong. of projects across the road, and high value technical these projects. The upside of this has been rail and water sectors. contributions to internal the positive positioning John Holland opportunities, SUCCESsFUL of John Holland’s We expanded our particularly within the road, COMPLETION FOR Communications business Communications offering rail and water sectors. TELSTRA and BHP with NBN Mainland key based on a number of early We successfully completed stakeholders, and the high and strategic partnerships Looking to the the Telstra IEN Project rollout potential for leveraging the with key vendors and future as well as completing the suppliers, including Ericsson significant technical and Going forward, in order BHP Billiton RGP Project in and Nokia Siemens operational lessons learnt to continue to build our Western Australia. Networks, that enabled us from NBN Tasmania to the business sustainably, $43 billion NBN Mainland to bring an enhanced and 62 we will be focusing on JOHN HOLLAND
getting back to basics supported by a renewed at an operational level, focus on establishing ensuring project delivery performance development fundamentals are in place. and succession planning In addition we will also focus programs. on ensuring that corporate We are committed to and project governance, John Holland’s operating risk management and COMMUNICATIONS principles of People, compliance processes are Performance, Partnership implemented, monitored and and Profit, and our focus measured. And in line with is on ensuring that all our our culture of employing the efforts are underpinned by right people for the job, we these key business drivers. will also be implementing the frameworks which support We look forward to building personal accountability and positive growth and success achievement at all levels for our Communications across the business. business in the year that lies ahead, and we embrace Our commitment to our growth challenges in ongoing safety excellence order to deliver a profitable, and improvement will be sustainable return on supported by the continued investment. rollout of the Safety, Quality and Environment Risk Management Program and the Passport to Safety Excellence Program across the breadth of our business. In addition, our investment in People as the cornerstone of our business will be 63 ANNUAL REVIEW 2010
64 JOHN HOLLAND
John Holland’s approach to safety over the last 12 months has been about consolidation of the work commenced in the previous period, focusing on embedding our risk management approach to build a consistent platform that reinforces the value of our ‘No Harm’ vision.
Safety
Jason Grech, Leading Hand at Domestic Terminal 2, Melbourne Airport
65 ANNUAL REVIEW Left: 2010 Cotter Dam, AUSTRALIAN CAPITAL TERRITORY
Middle: Hussein Kadir, Gantry Crane dogman, Northern sewerage project, Melbourne
Right: Peter Alderdice, Construction Worker at Energy Australia Stadium, Newcastle
John Holland will be the industry leader in managing safety throughout its operations
The improvements that our risk management approach and we are achieving effective return-to-work outcomes has introduced have been significant, and we now see through our direct management of workplace injuries safety effectively aligning with other disciplines within and rehabilitation. the business to provide more holistic benefits to the way we plan and execute our work. Year TRIFR Severity Average claim cost Through this approach we are constantly seeing 2007-2008 26.63 71.91 $8,213 opportunities where we can instigate higher order 2008-2009 27.13 52.76 $5,316 controls much earlier in our planning processes, which 2009-2010 21.74 31.72 $5,109 in turn leads to robust systems and complementary behaviour in our people. John Holland has now been a Comcare self-insurer for over three-and-a-half years, and it is clear that It is pleasing to note that we are succeeding in reducing the greatest benefit of being self-insured under our benchmark indicators of Total Recordable Injury Comcare is our ability to secure a prompt and effective Frequency Rate (TRIFR) and Severity Rate, with a minimal return to normal work for employees injured in the reduction in average claims costs. It is worth noting course of their employment. The Comcare workers’ however that our current average claim costs are well compensation benefits are buttressed by one of the most below industry standard. comprehensive suites of employee disability benefits This reduction over time reinforces the value we place in Australia. These are provided through John Holland on open and comprehensive reporting of incidents. Group Mutual Limited. Through the mutual structure we We continue to see the severity of incidents reducing, can provide cost-effective salary continuance for illness 66 JOHN HOLLAND
and injury together with journey and recess coverage, Our internal culture encourages the identification providing employees with a seamless package of support and open reporting of hazards and near-miss events, for any illness or injury – whether work-related or not. and provides a learning opportunity, ensuring that all employees have the ability and confidence to stop Through a structured approach to delivering effective work where there is uncertainty of risk and associated safety management, John Holland continues to focus controls. Most importantly, it ensures that trade-offs on cultivating a proactive environment for the protection between productivity and safety are explicit, openly of our people. discussed and resolved in accordance with our core Critical to our success in delivering this environment are value of ‘No Harm’. our strategic safety programs. John Holland’s leadership team continues to work John Holland’s Passport to Safety Excellence Program tirelessly on our four safety improvement platforms of identifies all positions within the company that influence, leadership, risk management, capability and governance. supervise and manage safety. Each of these positions Our future success rests on our approach to developing has a documented skill and behavioural competency and effectively executing our safety strategy across standard, which is satisfied by the successful completion the group. Our vision states that John Holland will be of the Program and the application of knowledge in the industry leader in managing safety throughout its the field. The Program covers a range of areas, from operations and that we are recognised by employees, safety leadership to risk assessment, and from incident clients and regulatory authorities as the safest contractor SAFETY investigation to rehabilitation and return to work. in the industry. The Safety, Quality and Environment Risk Management We will achieve our vision through the adoption of the Program has been in place for over 12 months and it ‘No Harm’ philosophy and by developing further our is now ensuring that occupational health and safety ethos of self-regulation. By applying a proactive, risk- risks are identified as early as possible in the business based approach to safety management we will achieve cycle. It is successfully shifting our previous reliance on group-wide excellence in this area, and we will ensure procedural and administrative controls and increasing our our people understand and actively commit to workplace use of higher-order engineering and elimination controls. safety on a daily basis. The program is in a period of embedding and we will continue to monitor and improve the process so that it becomes fully integrated and regarded simply as the way we work at John Holland. Our endeavours to build and entrench a robust safety culture have been reinforced with the alignment of our Safety strategy to our vision of ‘No Harm’. We continue to build capability within our people and provide relevant, robust, and user-friendly systems, based on a clear picture of the risks inherent in the work we do and the right controls to protect our people. 67 ANNUAL REVIEW 2010
68 JOHN HOLLAND
John Holland’s gold standard for quality is our annual Chairman’s Award. Each year, John Holland recognises the outstanding achievements of its people and projects through the Annual Achievement Awards. The pinnacle award is the Chairman’s Award and competition is fierce for the top honour. The award sets a benchmark and is one avenue for us to continually improve the way we do business.
Quality
Darra to Springfield transport corridor, Brisbane
69 ANNUAL REVIEW 2010 In 2009, the Chairman’s Award acknowledged Bathurst Hospital in At John New South Wales as the most outstanding project for the year. This complex project achieved superb results. There was a Holland, we focus on career development of staff and workforce, and the collaborative approach to subcontractor engagement and take a whole- development was innovative. We’d like every one of our projects to be a Chairman’s Award-winner. It is the of-project standard we aspire to for all projects. With this comes increased client satisfaction and the potential for approach repeat business. It is fundamentally about how we do business. We also recognise there are strong to quality. relationship synergies that exist between environment, quality and safety. They are complementary functions that, when For us, it is aligned, give rise to better outcomes overall. Good safety practices and competent a business environmental practices undoubtedly lead to better quality outcomes, and a better project outcome overall. Similarly, excellence if we adopt better quality procedures and robust practices and we plan well, the result will be stronger outcomes in safety imperative and the environment. We see this in evidence. If you look, for example, at the criteria that governs the Chairman’s award, it translates to a higher
70 Right: JOHN HOLLAND level of performance and delivery across a Isaac plains coal mine, central whole range of areas. Not just operations Queensland and planning but a whole-of-operations Bottom Left: Darra to approach that includes a high level of Springfield transport safety and environmental achievement corridor, Brisbane that makes a project worthy of winning Bottom Right: SHAHSI KUMAR, a Chairman’s Award. PROJECT ENGINEER (LEFT) AND PETER LILLEY, TBM Our most experienced professionals at OPERATOR (RIGHT), Airport link, John Holland will tell you that part and Brisbane parcel of consistency is the ability to perform highly across each of those areas. We can have great safety performance or great quality practices, but this doesn’t always equate to the best possible environmental or project outcomes. Good quality performance is fundamentally about surety. Establishing robust systems, processes and practices, and mitigating risks. That is, establishing the best level of control we can over our results. Quality at John Holland isn’t about whether an individual part or component meets a specification, although that’s important too. It is instead about managing the whole process to deliver the outcome you expect. When this is done well, the many aspects of our performance meet best practice standards and result in the best possible outcome for our clients.
Quality
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This year has once again been a challenging period for John Holland due to increasing expectations of stakeholders and the rapidly changing legislative landscape. The strength of our people and processes has meant that we have responded well to these challenges, while striving to achieve the best environmental outcomes on our projects for both John Holland and our clients.
Environment
Lynden Cini, Environmental Officer, issac Plains Coal Mine, Central Queensland
73 ANNUAL REVIEW 2010 Good environmental practice is the foundation on which we build our future success
Effective management of environmental issues on John Sydney Desalination Project was also recognised, Holland projects continues to be achieved through with the John Holland/Veolia joint venture a finalist embedding environmental roles within project delivery in the NSW Civil Contractors Federation Earth Award. teams. In support of the delivery of improved project Looking to the future performance, John Holland has repositioned the Looking ahead, John Holland faces a number of environment function under operations to further align challenges with the potential introduction of the environmental and operational outcomes. John Holland’s Carbon Pollution Reduction Scheme (CPRS), the risk-based Environmental Management System (EMS) continuing evolution of the National Greenhouse and remains compliant with the requirements of the ISO14001 Energy Reporting legislation, the nationwide increase framework, and environmental risk is identified, assessed in regulators’ focus on enforcement, sustainability in and controlled for all projects through a cascading infrastructure, and the risks and opportunities associated planning process known as Safety, Quality and with adaptation to climate change. Environment Risk Management. Implementation of the EMS is reviewed through regular surveillance Our environmental strategy remains focused on and certification audits. initiatives aimed at improving environmental performance at a project level, through the operationalisation of the In line with standard industry practices, John Holland function as far as is practical, and the identification of uses an Environmental Incident Frequency Rate (EIFR) to opportunities to reduce costs and create sustainable track our environmental performance across all projects. outcomes through greater efficiency and innovation. This allows us to assess and compare performance We are also continuing to further refine our processes across all business units, with the aim of driving ongoing and systems for collecting data on energy usage, improvement. greenhouse gas emissions and other sustainability Areas of concern parameters. There were no Class 1 environmental incidents recorded Increased collaboration between the environment, quality during the year, however our target EIFR of 0.08 for the and safety functions of the business has opened the door year was exceeded, with a result of 0.28 recorded, and to greater internal efficiencies. We are also pursuing new we incurred one Penalty Infringement Notice ($1,500) opportunities in green building and renewable energy under the NSW Protection of the Environment Operations projects every day. Act 1997. John Holland considers any environmental infringements or breaches to be an unacceptable We aspire to be a leader in the provision of outcome of our activities, and we will continue to work environmentally sound infrastructure, and good to improve our performance. environmental practice is a core component of how we win and deliver work. It is the foundation on which There were a number of environmental highlights we build our future success. over the last 12 months. We are pleased to have been recognised as part of the Sugarloaf Pipeline Alliance for our environmental performance on the Sugarloaf Pipeline Project. The Alliance received the Victorian Civil Contractors Federation Earth Award. Our work on the
74 Top: JOHN HOLLAND Simon MCdonald, safety advisor, abbot point coal terminal, north Queensland
Middle: Craig Perkins and Maggie Surchorska demonstrating water quality techniques for local children at the Northern Sewerage Project
Bottom: Brian Dawson, Environmental Officer, abbot point coal terminal, north Queensland
ENVIRONMENT
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John Holland’s approach to community and stakeholder engagement is grounded in the development of mutually beneficial partnerships in all those areas where we operate. Over the last year at both a corporate and project level, we have seen the further enhancement and development of our commitment to delivering projects ethically and the emergence of a number of new initiatives that promote sustainable and self supporting communities.
Community
Todd Burrows helping two students from Karratha Catholic College try their hand at scaffolding during the Try-a-Trade Expo in Western Australia
77 ANNUAL REVIEW 2010 Our project sponsorships underpin our commitment to the local community
Top: Our community engagement guidelines Victorian Opera’s major corporate sponsor Richard Gill, continue to underpin our approach to and community partner, helping to bring Victorian Opera Bottom: project stakeholder engagement. These performances to communities across Cronulla Line Duplication guidelines operate to extend the benefits Victoria. We also continue our support for project invited staff and members delivered to local communities beyond the the Queensland Symphony Orchestra and of the community to the first train ride after provision of vital public infrastructure and the Australian National Academy of Music. completion employment opportunities. The guidelines John Holland also continues its support require each project team to identify and for the development of the skills of our build mutually beneficial partnerships with youngest engineers. Reflecting Sir John local organisations, reflecting the spirit Holland’s commitment to excellence of neighbourliness and leaving a lasting in engineering and the development of legacy for the broader community. The emerging talent, we have developed key effectiveness of such initiatives is not to be partnerships with Monash University measured in levels of monetary investment, in Melbourne and Central Queensland but through the value both to John Holland University. The Engineers for the Future employees and the community. Program through Central Queensland There have been numerous community University aims to provide students partnership highlights over the last with practical insight into the roles and 12 months. In Queensland, the Horizon responsibilities of engineers on major Alliance project team donated materials and projects. John Holland team members labour to deliver a renovation of facilities work closely with students to impart at the Inala Community House and restore knowledge from the workplace. play equipment at the Western Suburbs John Holland remains committed to State Special School. Meanwhile in New the development of open, positive and South Wales, the Cronulla Rail Line Alliance transparent relationships with local installed wheelchair accessible garden beds communities, and, through our broader at the Sylvanvale Foundation’s Sutherland corporate sponsorship approach, to Activity Centre, opening up the world of improving access to art and culture and horticulture to people with disabilities. providing development opportunities for At a corporate level, our major sponsorships the best and brightest young Australian build on our longstanding passion for engineers. This approach not only promotes the arts and demonstrate our broader efficiency in project delivery, but reflects commitment to community development John Holland’s longstanding commitment and engagement. John Holland remains to community investment.
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Community
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‘People’ is one of our four key operating principles. In 2009- 2010, we continued our commitment to our employees in recognition that John Holland is ‘Powered by People’, and committed to being an employer of choice in our industry. To this end, over the last 12 months we have implemented a number of activities that focus on improving career opportunities and the learning and development of our people throughout their employment with John Holland.
People
Connie King, Senior Project Manager (left) and Linda Tabone, Contracts Administrator (right) at Domestic Terminal 2, Melbourne Airport
81 ANNUAL REVIEW Top: 2010 Energy Australia Stadium, Newcastle
Bottom: Bob Nowotny, Operations Manager (left) and Darren Hickson, Senior Maintenance Supervisor (right) at the Isaac Plains Coal Mine, Central Queensland
82 Passion for our JOHN HOLLAND people is fundamental to our strategy
A focus on improving the experience of our new employees commencing over the last year. These efforts have has been a priority. In the last six months, we kicked off a been aided by key partnerships with leading Australian program to review the onboarding process so that we can universities, including Monash University in Victoria and make the experience of joining John Holland positive and Central Queensland University. In June 2010, the inaugural reaffirming, in line with our employer brand. This program Sir John Holland Scholarship was awarded to two covers the period from acceptance of a letter of offer engineering students at Monash University. These students through the first 12 months of employment, and includes will work directly with John Holland as they continue their orientation, induction, corporate and role-training, cultural tertiary education. awareness, probation and new employee support and Employee engagement is a key indicator of whether we are assistance. Newly designed elements of the onboarding successfully meeting our People operating principle. Last processes will be released over the next 12 months. financial year we reviewed our approach to understanding In the last financial year we also invested in the employee engagement, and will be introducing a new development of a new performance management process employee survey in the next year. This survey will provide and supporting system to ensure that our people are better insight to the distinct drivers of employees across provided effective feedback on their performance and our business units and regions and empower managers have development plans in place that help them grow in to address identified issues. their career with us. The new process and system will be Workplace diversity also remains a key focus. Last financial implemented late in 2010. year we took steps toward the relaunch of Career Tracks, Allied to this new system, an improved approach to our Indigenous employment program. This reflects our managing our high-performing employees was developed long-term commitment to Indigenous engagement and with a view to implementing detailed succession plans for employment and John Holland’s history delivering projects critical roles. This program will identify and develop our in remote areas of Australia. In the last 12 months we have most talented people, who deliver outstanding solutions engaged a full-time Indigenous Affairs Program Manager to our clients. to build a comprehensive engagement program aimed at more accurately tracking and improving our efforts in this Learning and development continues to be a fundamental area. Our initial emphasis has been on improving cultural part of our People strategy. Fundamental to our success in awareness and investment in work-readiness programs this area has been the business-wide integration of all our that focus on project-based role placements. HR systems and processes, which will allow us to better address our immediate recruitment needs and identify Over the next year the engagement of our new Workplace training gaps. There has been significant investment in Diversity Manager will allow us to assess the demographics formal training programs over the last year. We continue of our current workforce to develop a detailed diversity to offer certified programs through our Registered policy, in line with emerging ASX guidelines. Training Organisation (RTO), including Passport to Safety John Holland’s support services model remains a key driver Excellence and Transport and Logistics training packages of business performance, with the effectiveness of our for our rapidly expanding Rail business. In the last financial human resources and learning and development functions year, approximately 2,500 employees have attended providing the support for ongoing business growth. As one training through our RTO. of our four key operating principles, the way we recruit, Over the last year we have moved to a more targeted engage and retain our people remains a key focus for learning and development approach to improve overall John Holland. Over the coming year the consolidation of business capability in critical areas. Investment in our the corporate HR structure will see greater investment in frontline managers has been a focus, through initiatives refining our onboarding process and improving learning such as the Super Leaders program and the sponsorship and development. This will help us address emerging skills People of individuals through Leighton Holdings’ Masters in Project shortfalls through the enhancement of our employee value Management program. proposition and the further positioning of John Holland as the employer of choice in our industry. It has also been pleasing to see greater investment in our youngest employees, with 55 new graduates entering the business and 53 apprenticeships and traineeships 83 ANNUAL REVIEW 2010 Corporate Structure
John Holland Group Pty Ltd Group Managing Director
Services Rail Finance and Pre-Contracts Human Corporate Construction Group Services Resources Affairs
Executive Executive Executive General General General Executive Executive Corporate Manager, Manager, Manager, General Chief Financial General General Group Officer Manager Regional Specialist Strategic Manager Manager Manager Businesses Businesses Projects
Precontracting/ Northern Tunnelling Communications National Project & Group Engineering HR Management Media & External Region Operations Services Services Communications
Strategic National Infrastructure NSW/ACT Water Project Strategic Finance & Estimating/ Strategic Marketing Region Development Projects Investments Tendering Resourcing
Southern Energy & Major Project Metro Trains Finance & Business Organisational Employee Region Resources Delivery Melbourne Administration Development Development Communication
Western International Relationship Region Power New Zealand Projects Group Taxation Contracting Diversity Publications
Information & Knowledge Learning & Safety Mining Communication Management Development Technology
Industrial Hong Kong Aviation Legal Relations Services
Quality Group payroll
Environment
Company Directory
Head office Sydney Brisbane Perth 70 Trenerry Crescent, Level 3, 65 Pirrama Road, 1000 Ann Street, Level 8, 67 Walters Drive, Abbotsford Pyrmont Fortitude Valley Osborne Park Victoria 3067 New South Wales 2009 Queensland 4006 Western Australia 6017 P: 03 9934 5209 P: 02 9552 4288 P: 07 3867 7000 P: 08 9482 2700 F: 03 9934 5275 F: 02 9660 0410 F: 07 3867 7100 F: 08 9482 2892
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84 For additional copies of the John Holland Annual Review 2010, email [email protected] or visit our website www.johnholland.com.au John Holland has taken all reasonable care in preparing this 2009-2010 Annual Review (the ‘Review’) and believes it is correct in material respects. However, the Review is intended only to provide general and summarised Cover printed on 310gsm Lotus. Text printed on 150gsm Sumo Matt. information in relation to John Holland’s activities and is not intended to be comprehensive or advisory in nature. John Holland does not, in any way, This brochure has been printed using eco-friendly inks by an FSC hold out, represent or warrant the accuracy or completeness of any of the accredited printer. information contained in the Review and readers must not rely upon or act on the basis of any such information. John Holland is not responsible in any Designed and produced by www.teamscope.com.au way for any cost, loss, damage or other liability of whatsoever nature, which may directly or indirectly be suffered by any person, by way of reliance on any of the information in the Review. www.johnholland.com.au