CASE STUDY PORT OF MIAMI TUNNEL OPERATION 305 ESG INITIATIVE: LOCAL RECRUITMENT, LOCAL BUSINESSES PARTICIPATION % OF THE INVESTMENT SPENT LOCALLY: 36% (OUT OF $900M) % OF LOCAL WORKFORCE: 85% (OUT OF 7000 FOR THE ENTIRE SUPPLY CHAIN) % OF LOCAL BUSINESSES: 50% (OUT OF 800+) KEEPING IT LOCAL CREATING JOBS AND BOOSTING COMMUNITY WEALTH The Port of Miami has a “We wanted to make this a project towards the County authorities new tunnel and road-link all about local people, partly by was at a low point after public ensuring a lot of the investment money had been used to build a developed through a $900m was spent on them as the supply new stadium for the Miami Marlins public private partnership chain and workforce,” says Chris baseball team. The MAT project was project. A 7,000 strong Hodgkins, Chief Executive Officer facing a 68% public unfavourable for the project company MAT rating,” says Chris. workforce built this vital Concessionaire LLP. piece of infrastructure, drawn With all this in mind, Operation 305 together from the Miami “We came to view MAT as was launched as a project-wide akin to a three-legged stool; initiative, by Chris and his team from Dade County area through an whereby two of the legs were the offices of MAT Concessionaire, initiative launched to ensure the technical challenges of the but in partnership with other cities local people benefit most design and construction of the new and county organisations, with the infrastructure. The third equally local office of LiUNA (Laborers’ from the investment. important leg, was the outreach and International Union of North communications effort.” America) for example. he 2,7 million residents of Miami-Dade County in the MAT Concessionaire is a special “We wanted to hire locally, to TUS State of Florida have the purpose vehicle formed by partners provide jobs for as many people in number 305 as their telephone Meridiam and Bouygues Civil Works the County as possible,” Chris says. dialling zip-code. So Operation 305 Florida (BCWF sold their interest Another crucial goal was set, to was the name given to an important at the end of the construction). create a diverse workforce with a recruitment and local procurement Towards the end of 2009, project demographic by racial background drive established with the aim of sponsors the State of Florida, that mirrors that of the County – providing employment to as many Miami-Dade County and the City approximately 51% hispanic, 22% locals as possible as the Miami of Miami, awarded a 35-year african-american and 11% white Access Tunnel (MAT) project got concession to MAT Concessionaire, caucasian. under way. handing it responsibility for the design, construction, financing, This would be done through This is a $900m infrastructure operation and maintenance of recruitment efforts targeting development, featuring a new twin- the MAT tunnel and its connecting individual job seekers: “We held bore road tunnel between Miami’s roads. around 20 separate job fairs with MacArthur Causeway Bridge and the municipal, city, county and state city’s port infrastructure on Dodge This came at a difficult time for the authorities and communicated job Island. But MAT now represents more city and surrounding area, as Chris opportunities through organisations than just a large-scale and complex explains: “The construction project including Veterans for America,” engineering project. From the outset, started proper in 2010. The global Chris says. it grew to become a major boost to financial crisis that followed 2008 the local economy and communities was biting hard. Unemployment “We needed all the different of Miami-Dade County. was running high and public feeling specialist skills of a major P.2 SUSTAINABLE SKILLS For Operation 305 to be judged a success, the new jobs created needed to be sustainable,” says construction project. Applicants partly against how they took MAT Concessionaire Operations that came to us were pre- up the ethos of Operation 305, Manager Wendy Conforme. Most screened by their zip-code and which was also developed as of the specialist skills employed then sent on to our contractors an initiative targeting local already had a good level of for them to consider. They could vendors and suppliers. A project sustainability, but for others, say yes or no to each applicant, procurement framework set out particularly the new starts, for bona fide reasons, but on the terms for local businesses to on-the-job training became an we were getting the whole, get involved and a partnership important part of Operation 305. enquiries from good people, with the Miami-Dade County some of them with experience Small Business Development “The overall initiative was very and skills already highly suitable. Office was forged to help local much about the sustainability We were able to work with SMEs and small companies from LiUNA and other local unions as disadvantaged communities to of the investment in the well, to recruit and place these get on-board. community and local skills, specialist and skilled workers in bringing the next generation the right places.” Many of the opportunities through and helping their on offer were advertised at a employability as well,“ Wendy The principal contractor Vendor and Supplier Expo held says. Bouygues was fully signed up in Miami in December 2010, and committed to the initiative, including subcontracts for a “As the initiative became 900 Chris says. A total of around variety of electrical, mechanical, embedded, as it spread outwards construction workers would safety equipment and other and trickled down the supply be employed directly, many as specialist construction work. In chain, we developed outreach new hires. “We told all of our total, 831 different companies efforts with local schools. Our contractors, we want you to do would work on the project. More as we do. We set out a mission than half, 465, were Miami- contractors, who are more statement to employ and Dade businesses. Around than aware of the importance spend locally and we measured $325m of the MAT construction of developing skills, were very everyone’s actions,” he adds. investment was spent through proactive here, helping us with them, providing a significant arranging site tours for local Contractors were incentivised uplift to the local economy as schools. This continued with with their performance gauged well as a lot of new jobs. sponsored activities during National Engineers Week in February each year, for developing the engineers of the future with local high schools.” P.3 A VITAL LINK FOR DEVELOPMENT Miami’s Access Tunnel project came about as an infrastructure scheme vital for the city and the Port of Miami’s development. The The results of the Operation 305 Furthermore, from Meridiam’s port boasts the world’s largest initiative have been “phenomenal”, point of view, Operation 305 is cruise liner terminal, handling Chris says. It’s estimated that close being upheld as an example of over four million passengers every to 7,000 people worked on the the ESG (Environmental, Social year and it’s also a major harbour for freight shipping worth an and Governance) initiative for construction project throughout estimated $18bn in economic the supply chain. About 85% other projects to follow. Operation output for Miami and the state of were residents of Miami-Dade 305 achieved its aim of a diverse Florida. County. In addition to working workforce matching the Miami- with hundreds of different local Dade demographic – exceeding Such success had brought a big problem of traffic congestion in the the target with 26% employment government organisations city. The port is situated just across and community groups, MAT from the black community. It also from the mainland on Dodge Concessionaire can boast a high surpassed its goal of spending Island. Reaching it from the main degree of client satisfaction. 8% of the project’s construction interstate highway network meant investment on disadvantaged travelling through downtown Miami to cross Port Boulevard Bridge business enterprises. The tunnel and connecting roads – previously the only crossing of opened to traffic on schedule (and Biscayne Bay to Dodge Island. under budget) in August 2014. “We regard Operation 305 as an Since then, the project has picked inspirational initiative on a number up numerous awards, including a of levels,” says Meridiam Senior 2015 Infrastructure Project Award Investment Director Scott Derby. from the US National Council for “On one level we see it as a great Public Private Partnerships and example for community outreach. in the same year a Grand Prize From the outset they got word for Florida State at the America’s out saying what the project was all Transportation Awards. But about and ‘what’s in it for you’. And perhaps the best endorsement for they made it clear that they didn’t The construction project widened Operation 305 comes from the fact want to bring people in from afar. the MacArthur Causeway Bridge that it continues to this day. Job creation is a very big issue for and drove a twin-bore road tunnel major infrastructure projects. beneath Biscayne Bay. Contractors “The tunnel and road network are also reconstructed the Port of in operation, employing about 34 “In doing so, by keeping the Miami road network on Dodge Island and at each end of the 1.5km people directly, but our operation majority of the construction tunnel. All of this was done while and maintenance contractor spend in the local area, MAT Concessionaire has highlighted the maintaining road access to the port Broadspectrum is still hiring locally. and continuous traffic flow on the benefits of major infrastructure And that large and skilled supply causeway and bridges investment generally, for local – a remarkable feat in itself.