Global Infrastructure Market, 1994-2014 Global ... · ENR Top 225 International Contractors (2005),...

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2015/11/20 1 Partnership and Sustainability: New Frontier for Construction Business A Perspective from Japan and Asia IFWAPCA Tokyo Nov 18, 2015 Hiroshi Ohashi (U. Tokyo) 1 Global Infrastructure Market, 1994-2014 2 Global Infrastructure Market, 1994-2014 3 20% in 1994 40% in 2014 Global Infrastructure: By Region and By Category By Region By Market 4 ENR Top 225 International Contractors (2005), ENR Top 250 International Contractors (2015

Transcript of Global Infrastructure Market, 1994-2014 Global ... · ENR Top 225 International Contractors (2005),...

2015/11/20

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Partnership and Sustainability:New Frontier for Construction Business

A Perspective from Japan and Asia

IFWAPCA Tokyo Nov 18, 2015

Hiroshi Ohashi (U. Tokyo)

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Global Infrastructure Market, 1994-2014

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Global Infrastructure Market, 1994-2014

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20% in 1994→ 40% in 2014

Global Infrastructure: By Region and By Category By Region By Market

4ENR Top 225 International Contractors (2005), ENR Top 250 International Contractors (2015

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Infrastructure: A Critical for Economic Development and Growth

Private and Public Investment on Infrastructure

• Domestic Saving• Financial Intermediation• International Finance

Financial Costs

Returns to Economic Activities

Micro-Level Risks: Property Rights, Taxes, CorruptionMacro-Level Risks: Financial Instability; Monetary and Fiscal Policies

Social Returns

New TechnologyHuman Capital

EntrepreneurshipQuality of Living

Economic Development & GrowthInformation AsymmetryCoordination Externalities

Government Failures

MarketFailures

Appropriability

Infrastructure as “Social Capital”

1. Disaster Prevention and MitigationConstruction contractors have been playing anrole indispensable to local communities and governments.

2. Contribution to Economic GrowthInfrastructure induces private investment and expands economic activities.

3. Improving Quality of Life (QoL)Wise City planning promotes people’s health andallows easy transition to aging society.

Natural Disaster in Numbers, 1900-2010 (Worldwide)

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K. Kawada (2014)

National Institute of Population and Social Security Resaerch, 2014

Age Composition in Japan: Past and Future Projection

Need to Re-assess Productivity of Infrastructure

7David Alan Aschauer (1989)

Construction Industry: Core of “PLATFORM”

Construction Industry:hotbed for new technology

Agriculture TransportHousing

Environment Healthcare

ChildcareSchools

Governments Local Communities

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National &International

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Collaborating “Platforms”

PFI and 3P’s Need for Global Network

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Growth in PFI projects, Japan

Private Finance Initiative Promotion Office, Cabinet Office (2015) ENR Top 250 International Contractors

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Example 1

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Example 2

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Example 3

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Summary• Infrastructure becomes “social capital” --- it prevents and mitigates impacts of natural disorders and improves our daily lives, providing a hotbed for new technology for economic development and growth.

• Infrastructure “connects” a multitude of economic activities and multiple layers of economic agents (including governments and communities).

• Construction may well be a core of “platform” within the country, and across the Asian countries through IFWAPCA.

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Thank [email protected]

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Infrastructure Ranking, 2014-15

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Infrastructure: A Critical for Growth

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Private and Public Investment on Infrastructure

High Returns to Economic Activities

High Social Returns

AppropriabilityGovernment

Failures

Market Failures Information AsymmetryCoordination Externalities

Micro-Level Risks: Property Rights, Taxes, CorruptionMacro-Level Risks: Financial Instability; Monetary and Fiscal Policies

Financial Costs

GeographyHuman Capital; Entrepreneurship

• International Finance• Local Finance• Domestic Saving• Financial Intermediation

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Asian Development Bankand its Operation for Infrastructure Development

IFAWPCA Seminar18 November 2015, Tokyo

Tomomi Tamaki Representative, Japanese

Representative OfficeAsian Development Bank

I. About ADB

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Asian Development Bank (ADB)Headquarters Manila, PhilippinesFounded in 196667 MembersAuthorized Capital $ 153.1 billion* (end 2014)

Major shareholders (capital share %): Japan (15.7%), United States (15.6%), PRC(6.5%), India(6.4%)* Paid-in capital (including $1.6bn committed but not paid yet): $7.7bnCallable capital: $145.4bn

Annual Loan/Investment Approval $13.1 billion (2014)

Loan Outstanding $83.4 billion (end 2014)

Top recipients: India, PRC, Pakistan, Viet Nam, Philippines

Staff 2,990 (including professional staff 1,074)

ADB Operations

4Note: Bracketed numbers are from 2013.

10 ,438

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

[USD million]

Ordinary Capital Resources (OCR) Operations Approvals ($ million)

By country (2014)

India 27.9%(23.6%)

PRC 17.4%(19.6%)

Philippines9.3%(8.4%)

Pakistan7.9%(10.3%)

Viet Nam7.1%(4.0%)

Others30.3%(28.3%)

Transportation34.3% (32.6%)

Energy 17.1% (29.4%)

Public Sector Management12.5% (7.2%)

Finance Sector Development

10.0% (11.1%)

Water9.6% (10.9%)

Education4.8% (4.1%)

Other Infrastructure4.4% (0.2%)

Industry & Trade3.4% (0.3%)

Agriculture3.3% (3.7%)

Information & Communication

Technology0.5% (-) Health

0.002% (0.6%)

By sector(2014)

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Asian Development Fund(ADF) Operations Approvals ($ million)

Note: Bracketed numbers are from 2013.

USD million

By country (2014)

Bangladesh16.0%(9.4%)

Viet Nam13.2%(9.5%)Nepal

10.5%(9.8%)

Cambodia7.3%(1.8%)

Others34.8%(40.1%)

3,091

Pakistan18.2%(11.9%)

Energy 29.6% (19.4%)

Transportation25.8% (17.0%)Agriculture

13.0% (8.6%)

Education10.1% (5.6%)

Water8.0% (14.1%)

Public Sector Management6.5% (27.0%)

Finance Sector Development3.2% (4.0%)

Other Infrastructure2.3% (1.2%) Industry & Trade

1.4% (0.5%)

Health0.0% (2.5%)

By sector (2014)

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

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ADB OperationsII. ADB’s Operation for

Infrastructure Development

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Midterm Review of Strategy 2020- Meeting the Challenges of a Transforming Asia and the Pacific -

(approved by the Board on 23 April, 2014)

ADB’s Strategic Priorities for 2014-20201. Poverty Reduction and Inclusive Economic Growth2. Environment and Climate Change 3. Regional Cooperation and Integration4. Infrastructure Development5. Middle-Income Countries6. Private Sector Development and Operations7. Knowledge Solutions8. Financial Resources and Partnerships9. Delivering Value for Money in ADB

10. Organizing to Meet New Challenges

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Infrastructure remains priority in Midterm Review Strategy2020- How we will support infrastructure development? -

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- Inclusive growth(e.g. education, health etc.) - Environment and climate change

(e.g. clean energy, railway, disaster)- Regional cooperation

Responding to the New BusinessEnvironment

Sharpening ADB’s Operational Focus

Strengthening ADB’sCapacity and Effectiveness

Asia’s huge infra needs ($8 trillions 2010-20)

- Private sector development and operations

(Scale up Private Sector Operations,Promoting innovative finance)

-Expansion of lensing capacitythrough ADF-OCR merger

ADB’s continuous focus on infrastructure development

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III. Infrastructure Development by Promoting PPP

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ADB’s PPP Operational Framework“PPP Operational Plan 2012 – 2020”

Pillar 1Advocacy & Capacity development

• Create awareness• Invoke leadership• Identify PPP potential

in sector planning and the private sector development agenda

• Develop capacity of Government and ADB staff

• Enhance external knowledge management links

Pillar 2Enabling Environment

• Develop policy, legal, regulatory and institutional framework to facilitate, guide and manage the development of PPPs (country and sector specific)

Pillar 3Project development

• Align ADB project cycle to the PPP development process

• Assist in the development of pathfinder projects

• Provide support (including advisory support) throughout the process up to contract award/financial close which can come as expert support, toolkits, funding costs of transaction advisors, procurement support.

Pillar 4Project financing

• Provide credit enhancement products e.g. equity, long term debt, refinancing subordinate debt, cofinancing, guarantees, etc.

• Establish credit guarantee facility

• Provide public sector financial support through schemes such as viability gap funding, etc.

IV. Integraetd Disaster Risk Management forResilient Infrastructure

11Pr

inci

ples

/req

uire

men

ts Integrate disaster risk reduction into development

Many development actions carry potential disaster risk but also

provide opportunities to strengthen resilience

Cross-cutting actions

Reduced disaster risk in the immediate and long term Enhanced residual risk management for effective disaster

response

Address the disaster risk management-climate

change adaptation intersection

DRM investments may underperform and

ultimately even exacerbate disaster risk if climate change is ignored

Strengthened disaster resilience

Out

com

e

ADB’s Integrated Disaster Risk Management Approach

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Develop disaster risk financing capabilities

Levels of expenditure on disaster risk reduction and residual risk management

should be increased to reflect long-term risk

profiles

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Please send your comments and suggestions to [email protected]

The views and opinions presented in this lecture were the lecturer’s personal onesand therefore not necessarily represented ADB’s official views.

Thank you very much.

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BUSINESS DEVELOPMENT VIA COLLABORATIVE CONTRACTING MODELS – THE PERSPECTIVE OF EUROPEAN INTERNATIONAL CONTRACTORS

Frank KehlenbachDirector European International Contractors (EIC)

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PRESENTATION AGENDA

ABOUT EIC

BUSINESS DEVELOPMENT OF EUROPEAN CONTRACTORS Internationalisation

Diversification

New Industries & New Technologies

Collaborative Contracting Models

Why and How

Public-Private Partnerships

Partnering

Early Contractor Involvement

CONCLUSION

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ABOUT EIC:BASIC FACTS

Foundation: Founded in 1970 (re-structured in 1984 with Registered Office located in Berlin).

Organisation: European industrial lobbying association.

Mission: (1) Representing the international interests of the European construction industry vis-à-vis the EU Institutions, the World Bank, the OECD and key non-governmental stakeholders (e.g. FIDIC, CoST, etc.); (2) Established Networking platform for European contractors working internationally.

Membership: Full Members are construction trade federations from 15 European countriesto which around 200 internationally active contractors are affiliated; Associated Members are companies from construction-related sectors.

Board: Board Members must be internationally experienced contractors representing the senior executive level of the leading European construction companies.

Activities: EIC Positions are elaborated by specific Working Groups for topics such as: Africa, Contract Conditions, Finance, Ethics + Poland (with FIEC), World Bank Procurement.

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ABOUT EIC: MEMBER FEDERATIONS

Vereinigung Industrieller Bauunternehmen Österreichs (VIBÖ)

Confédération Construction

Schweizerischer Baumeisterverband (SBV)

Dansk Byggeri

Rakkenusteollisuus RT

Fédération Nationale des TravauxPublics (FNTP) - SEFI

Hauptverband der Deutschen Bauindustrie

Association Panhéllenique des IngénieursDiplomés et Entrepreneurs des TravauxPublics (PEDMEDE)

Associazione Nazionale Costruttori Edili(ANCE)

Netherlands Association ofInternational Contractors (NABU)

Federação Portuguesa da Indústria da Construção e Obras Públicas (FEPICOP)

Associación de Empresas Constructoras de Ámbito Nacional (SEOPAN – Grupo Exportador)

Sveriges Byggindustrier

Turkish Contractors Association(TCA)

Bulgarian Construction Chamber

Several Associated Member Companies from construction-related branches

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Guillermo AparicioFCC (ES)

Jesper ArkilArkil Holding (DK)

Duccio AstaldiCondotte d‘Acqua (IT)

Selim BoraSumma (TK)

Juha KostiainenYIT Corporation (FI)

Vice President George DemetriouJ&P Avax (GR)

Treasurer Per NielsenNCC (SE)

President Philippe DessoyBesix (B)

Antonio MotaMota-Engil (PO)

Karl-Heinz MüllerStrabag International (DE)

Christophe Pélissié du RausasVinci Concessions (FR)

Wouter RemmeltsBAM International (NL)

Karl-Heinz StraussPorr (AT)

ABOUT EIC: BOARD MEMBERS

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NEW BUSINESSS DEVELOPMENT FOR CONTRACTORSOVERVIEW

INTERNATIONALISATION NEW TECHNOLOGIES

COLLABORATIVE CONTRACTING MODELS

NEW BUSINESS DEVELOPMENT

DIVERSIFICATION NEW INDUSTRIES

FOCUS FOCUS

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Austria9%

Belgium4%

Denmark0%

Finland1%

France21%

Germany16%Italy

6%Netherland

s8%

Portugal4%

Spain9%

Sweden9%

Turkey10%

UK3%

MARKET SHARE BY MEMBER

Source: EIC Contracts Statistics 2014

With an accumulated total international construction turnover of around €165 billion in the year 2014, European international contractors are present on all five continents and, as a group, they remain the leaders in the international construction business.

Europe (cross-border)

44%

North America15%

Latin America

7%

Australia10%

Asia6%

Middle East8%

Africa10%

EIC INTERNATIONAL PRESENCE

NEW BUSINESSS DEVELOPMENT FOR CONTRACTORSINTERNATIONALISATION

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COMPANY Construction Real Estate Development Concessions Industrial

ServicesEnvironment & Water Energy Telcom

VINCI

Grupo ACS

BOUYGUES/Colas

HOCHTIEF

SKANSKA

EIFFAGE

STRABAG

FERROVIAL

BAM GROUP

FCC

NCC

OHL

SALINI-IMPREGILO

EIC Research

NEW BUSINESSS DEVELOPMENT FOR CONTRACTORSDIVERSIFICATION

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NEW BUSINESSS DEVELOPMENT FOR CONTRACTORSNEW INDUSTRIES & NEW TECHNOLOGIES

Off-shore wind parks & Building Information Modelling

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Cost of construction

Cost influence

Cost Influence Curve

Construction

TenderFinal Design

Design Development

Conceptual planning

High

Low

Abilityto

influence cost

High

Project expenditure

LowStart Time Complete

NEW BUSINESSS DEVELOPMENT FOR CONTRACTORSCOLLABORATIVE CONTRACTING MODELS - WHY ?

Traditional procurement method: The contractorenters the process only after key decisions have been made by the client and its consultant/architect

Problem: The client and its consultants/architects often make design decisions with insufficient information and limited know-how as to the latest technology, equipment and innovative solutions

The traditional tender process may be a reliable form of procurement, but…

Berlin's new airport? It now won't open until late 2017

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11Integrated Design &

Construction

Improved Constructability

Increase Cost

Certainty

Shorter Construction

Period

Shared Risk Management

“No-claim, No-blame”

culture

ADVANTAGES

Collaborative Contracting Modelsbring the key participants (Client,Designer, Contractor) together atan early project stage:

“1 Team instead of 3 camps”

Thus the traditional barriersbetween design and constructionare removed, allowing for theintegration of design skills andconstruction knowledge.

This allows contractor, designerand key supply chain as a team todevelop innovative solutions.

NEW BUSINESSS DEVELOPMENT FOR CONTRACTORSCOLLABORATIVE CONTRACTING MODELS - WHY ?

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12Project Delivery Models & Responsibilities based on Risk Factors

PREDOMINANT PAYMENT METHOD MAIN DECISION-MAKER

Concept Design Construct Operate Concept Design Construct Operate

Traditional Procurement (CO & DB)

Actual FixedFixed (except claims)

Actual CLI CLI-CON CON CLI

Public-PrivatePartnerships Fixed Fixed Fixed Fixed CON CON CON CON

Early Contractor Involvement

Actual Fixed Fixed (target price)

Actual

Actual CLI

Shared

CON CON CLI

Partnering & Alliancing Actual Actual Actual Shared Shared CLI

Fixed Actual Client ContractorSharedContract costs fixed prior to proceeding

Contract incurred as they arise

D E C I S I O N - M A K I N G

Source: Infrastructure Procurement Options Guide, Gov. of Western Australia

NEW BUSINESSS DEVELOPMENT FOR CONTRACTORSCOLLABORATIVE CONTRACTING MODELS – H0W ?

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NEW BUSINESSS DEVELOPMENT FOR CONTRACTORSPUBLIC-PRIVATE PARTNERSHIPS

“A Public-Private Partnershiprefers to a contractualarrangement between public(national, state, provincial, orlocal) and private entitiesthrough which the skills,assets, and / or financialresources of each of the publicand private sectors areallocated in a complementarymanner, thereby sharing therisks and rewards, to seek toprovide optimal servicedelivery and good value tocitizens.”

ADB PPP Operational Plan 2012-2020

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Total project value reaches more than US$ 1 trillion, 70% of all PPP projects are located within OECD area (most of them in Europe)

Water is the only sector that has a higher share outside than inside the OECD area

Roads are by far the largest PPP sector (50%) followed by rail (21%)

In some sectors / geographical areas some PPP’s are almost inexistent: Ports and airports in Africa; Airports/ports/rail in ME, Ports in NA

World, Project Value, Current M USD

EIC Sector Non OECD OECD Africa AsiaCentral/South

America EuropeMiddle East

North America

Oceania/Australia Grand Total

Airports 30.651 78.036 1.542 39.127 10.672 41.294 2.625 6.266 7.162 108.687Ports 19.425 27.999 500 16.408 6.621 11.892 1.100 2.946 7.956 47.424Rails 57.805 158.490 5.568 58.989 16.054 105.401 1.100 21.463 7.720 216.295Roads 114.880 408.432 4.998 69.839 91.430 238.735 2.235 92.903 23.171 523.312Water 75.595 63.388 10.683 30.526 16.285 31.898 20.640 17.908 11.043 138.983Total 298.356 736.345 23.291 214.890 141.062 429.221 27.700 141.485 57.051 1.034.701Source: Public Works Financing (PWF), European International Contractors (EIC)

Region

Source: EIC PPP Statistics 2014 / Public Works Financing

NEW BUSINESSS DEVELOPMENT FOR CONTRACTORSPUBLIC-PRIVATE PARTNERSHIPS

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MAIN DEVELOPER’S NATIONALITY (NUMBER OF PROJECTS WITH FINANCIAL CLOSURE 15/10/2013)

Source: Public Works Financing (PWF), European International Contractors (EIC)

Source: EIC PPP Statistics 2014 / Public Works Financing

NEW BUSINESSS DEVELOPMENT FOR CONTRACTORSPUBLIC-PRIVATE PARTNERSHIPS

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NEW BUSINESSS DEVELOPMENT FOR CONTRACTORSPARTNERING

Time

Cost Influence Options

GoalDefinition

Outline Design Approval Detailed Design Realisation

Pre-construction stage Construction Stage

1st Contract Stage 2nd Contract Stage

Exit Option

“Partnering promotes improved performance through collaborative business relationships based on best value rather than lowest cost.”

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17TERMINATION

POSSIBILITY FOR CLIENT

NEW BUSINESSS DEVELOPMENT FOR CONTRACTORSPARTNERING & EARLY CONTRACTOR INVOLVEMENT

Project Cycle & Competitive Tendering

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NEW BUSINESSS DEVELOPMENT FOR CONTRACTORSEARLY CONTRACTOR INVOLVEMENT

Early Contractor Involvement (ECI) is a contracting model that supports improved team working, innovation, planning to deliver Value for Money.

It involves an integrated contractor and designer team, appointed under an incentivised two-stage contract.

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CONCLUSION

Traditional contractual arrangements are unlikely to obtain optimised projectsuccess, as they – unrealistically – simulate a clear and definitive allocationsof risks (and responsibilities and liabilities) between parties. But not allpossible risks/uncertainties are foreseeable and quantifiable at the outset!

Collaborative Contracting Models allow contractor to influence the planningdecisions at project inception stage (i.e. the most beneficial point in time).

The integration of design expertise with construction knowledge is likely toyield a more precise and comprehensive risk assessment and a morevaluable design for the client (i.e. Value for Money).

Collaborative Contracting Models stimulate teamwork and innovation(i.e Value Engineering) which is likely to result in major cost and time savings.

Partnership of the major stakeholders is likely to remove an element ofadversarialism in the best interest of the project (and the parties).

THANK YOU FOR YOUR ATTENTION

European International ContractorsPhone +49 (0)30 / 212 86-244

Fax +49 (0)30 / 212 [email protected] www.eic-federation.eu

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IFAWPCA Seminar Tokyo 2015

Partnership and Sustainability in Disaster Prevention and Mitigation l November 2015

Professor Diane Brand l National Institute of Creative Arts and Industries l University of Auckland l New ZealandHugh Nicholson l Christchurch City l New Zealand

Partnership and Sustainability in Disaster Prevention and Mitigation

Disaster mitigation and prevention and requires a sustainable or resilient approach to urban governance. There are many partnerships involved in the effective recovery and future planning of urban development after a disaster such as the devastating Christchurch earthquakes in 2010 and 2011.

At a macro level government agencies, local authorities and the civil defense health sector and construction industries played a critical role.

At a micro level local businesses and communities are collaborating to revitalise the city’s culture, public realm and morale.

This paper will illustrate these initiatives by looking at the aftermath of the Christchurch earthquakes and identifying the lessons learned and evaluating recovery performance in terms of the key attributes of resilience.

Resilience definitions

The term resilience means different things across a variety of disciplines, but all definitionsare linked to the ability of a system, entity, community or person to withstand shocks whilestill maintaining its essential functions.

Resilience also refers to an ability to recover quickly and effectively from catastrophe, and acapability of enduring greater stress (Rockefeller Foundation 2015).

Resilient systems share five core characteristics: Spare capacity, which ensures that there isa back-up or alternative available when a vital component of a system fails; flexibility, theability to change, evolve, and adapt in the face of disaster; limited or ‘safe’ failure, whichprevents failures from rippling across systems; rapid rebound, the capacity to re-establishfunction and avoid long term disruptions; constant learning, with robust feedback loopsthat sense and allow new solutions as conditions change. Resilience is betterconceptualised as a continuum from disaster preparedness and responsiveness, to a statewhere transformational change is possible (Pelling 2011)

Urban resilience

Resilience in an urban context requires key actors to develop and demonstrate a set of corecapacities in addition to city systems which embed the above characteristics. Thesignificance of this understanding of resilience is the emphasis on achieving a desired statebased on continually evolving capacities and changing conditions (Moench, Tyler et al2011).

These are the resilience attributes this paper will evaluate the Christchurch recoveryperformance against.

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Christchurch Earthquake February 2011, LIDAR map and figure ground diagrams of city pre- and post-earthquake

The Empty Chairs Memorial to 185 CCTV victims, heritage building damage and demolition post earthquake

Lessons from Christchurch

• Grids, Laneways and open spaces

• New infrastructure

• Emergency restrictions on public access

• Strategic retreat

• Low rise city

• Transitional city

Grids laneways and open space

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Latimer Square Christchurch [pre-earthquake, disaster recovery, post-earthquake]

Red Zone [recovery and post-earthquake]

Liquefaction and flooding Eastern suburbs red zone

Public Art: Dance-O-Mat by Gapfiller, Canterbury Tales by FESTA, the Re-Start Mall

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The CCDP, the East Frame and the River precinctShare an idea campaign

Conclusion

In terms of urban resilience, the historic urban structure, infrastructure and open space ofChristchurch was able to provide spare capacity, and limited or ‘safe’ failure (inherent inthe gridded street system, dispersed wells and the ample inner city park space) during theemergency response phase, which allowed for effective evacuation, shelter and ultimatelythe isolation, demolition and debris management of the CBD within a military cordon. Inthe recovery phase the city has demonstrated flexibility, in terms of how it adjustedplanning regulation and implementation to engage government agencies, businesses, localcommunities and individuals, in transitional projects. This has facilitated rapid rebound, andconstant learning is on-going.

While there are significant challenges ahead, there are indications that lessons learned inthe post-earthquake reconstruction phase will inform and influence planning and urbandesign policy and practice in the longer term, engendering evolving capabilities asconditions inevitably change.

The partnerships have been multiple and range across the entire fabric of New Zealandsociety incorporating top-down and bottom up mechanisms in a balance that appears to beproductive.

THANKYOU

20.11.2015

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SUSTAINABILITY & THE EUROPEAN DREDGING CONTRACTORS: INGENIOUS SOLUTIONS FOR AN INCONVENIENT WORLD

Sander Dekker MSc, PhDManager SustainabilityVan Oord Dredging and Marine Contractors bv

42nd IFAWPCA Conference in Tokyo, 18 November 2015

NO (NETHER)LAND(S) WITHOUT MARINE CONTRACTORS!

INTRODUCTION

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AGENDA

About Van Oord

Inconvenient World

Ingenious Solutions

42nd IFAWPCA Conference in Tokyo, 18 November 2015

About Van Oord

Suez Canal

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Leading international marine contractor

Specialised in:

• Dredging & Marine construction

• Offshore oil & gas

• Offshore wind

Dutch family-owned business since 1868

“We don’t inherit this company from our parents, but we borrow it from our children”

ABOUT VAN OORD: COMPANY PROFILE

H.R.H. the Queen of the Netherlands

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“WE RESHAPE GOOGLE EARTH”Annually about 250 projects in more than 40 countries

Bahamas

Ichthys, LNG, Australia

Palm Island & The World, Dubai

Suez Canal, Egypt

Offshore wind parks

Sand Engine

Gladstone, LNG, Australia

Baydaratskaya Bay, Russia

Jakarta, Indonesia

ABOUT VAN OORD: PROJECTS

42nd IFAWPCA Conference in Tokyo, 18 November 2015

ABOUT VAN OORD: REVENUE DISTRIBUTION

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Technologically advanced

Innovative:

• Equipment: productivity & energy efficiency

• Projects: design & working methods

• Contracting models: integrated contracts

Flexible

Sustainability ↔ Business

ABOUT VAN OORD: OUR DNA

H.R.H. the King of the Netherlands

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The growing world population needs more spaceand the demand for energy is rising constantly.

Increasing world trade requires moreand better port facilities and climate change is

threatening coastal areas.

ABOUT VAN OORD: BUSINESS DRIVERS

42nd IFAWPCA Conference in Tokyo, 18 November 2015

Inconvenient World

Flooding in Jakarta

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• Jakarta is one of the largest and most densely populated cities of East Asia (# 4)• Each year the city sinks 10 centimetres • Each year 40% of the inhabitants has the risk that their street will be flooded

Jabodetabek (whole metropolitan area)

Greater Jakarta

Source: UN en CBS Indonesia

INCONVENIENT WORLD: POPULATION GROWTH

42nd IFAWPCA Conference in Tokyo, 18 November 2015

– Further reduction of CO2 emission: renewable energy

– Capacity Dutch offshore wind parks: 1000 MW (2013) → 4450 MW (2023)

Source: BP Statistical Review of World Energy 2014

INCONVENIENT WORLD: INCREASING DEMAND FOR ENERGY

Oil consumption in the Netherlands, 1984 – 2013(x 1,000 barrels / day)

CO2 emission in the Netherlands, 1990 – 2013(x 1,000,000 tons)

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Offshore wind park, North Sea

42nd IFAWPCA Conference in Tokyo, 18 November 2015 Source: IPCC, 2013

INCONVENIENT WORLD: SEA LEVEL RISE

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Sea defence (dune), North Sea coast

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INCONVENIENT WORLD: MORE PROJECTS INENVIRONMENTALLY SENSITIVE AREAS

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Ingenious Solutions

Sand Engine, the Netherlands

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Struggle against water Building with Nature

– This requires a multi-stakeholder approach: acceptance of solutions

– From ‘testing in the Netherlands’ to export potential

INGENIOUS SOLUTIONS: TRANSITION IN MARINE ENGINEERING

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42nd IFAWPCA Conference in Tokyo, 18 November 2015

INGENIOUS SOLUTIONS: R&D: ECO-ENGINEERING

20.11.2015

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42nd IFAWPCA Conference in Tokyo, 18 November 2015

Bahamas, Sandy Bottom

INGENIOUS SOLUTIONS

42nd IFAWPCA Conference in Tokyo, 18 November 2015

INGENIOUS SOLUTIONS

Mobile Coral Rehabilitation Lab

42nd IFAWPCA Conference in Tokyo, 18 November 2015

LNG Port, Ichthys, Australia

INGENIOUS SOLUTIONS

42nd IFAWPCA Conference in Tokyo, 18 November 2015

Wind turbine installation, North Sea

INGENIOUS SOLUTIONS

20.11.2015

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42nd IFAWPCA Conference in Tokyo, 18 November 2015

Van Oord Investment Programme 2015 - 2020

INGENIOUS SOLUTIONS

42nd IFAWPCA Conference in Tokyo, 18 November 2015

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SUMMARY & OBSERVATIONS

THE ‘INCONVENIENT WORLD’ REFLECTS SUSTAINABILITY & BUSINESS CHALLENGES FOR DREDGING CONTRACTORS

SUSTAINABILITY = BUSINESS: – BUSINESS DRIVERS ↔ GLOBAL SUSTAINABILITY CHALLENGES

– IT’S ALL ABOUT RESPONDING TO THESE CHALLENGES

BUSINESS = SUSTAINABILITY: – THIS IS FACILITATED BY ‘BUILDING WITH NATURE’ & ‘ECO-ENGINEERING’

– THESE CONCEPTS PROVIDE THE TOOLS FOR STATE-OF-THE-ART INGENIOUS SOLUTIONS

– WHICH HELP OUR CLIENTS IN GETTING MORE SUSTAINABLE & SUPPORTED PROJECTS

REAPING THE BENEFITS REQUIRES CLOSE COOPERATION WITH STAKEHOLDERS (CLIENTS, SUPPLIERS, KNOWLEDGE INSTITUTES, NGO’S, ETC.)

THANK YOU FOR YOUR ATTENTION

European International ContractorsPhone +49 (0)30 / 212 86-244

Fax +49 (0)30 / 212 [email protected] www.eic-federation.eu

Van Oord Dredging and Marine Contractors [email protected]

www.vanoord.com

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Construction Industry adaptive to

Global Warming

Materials & Procedurescontributing to

Carbon Emission Reduction

IFAWPCA SEMINAR at Tokyo

Makoto KanaiDr. of Eng., M.Eng., M.Sci.,Registered P.E.Principal Advisor to Obayashi Corporation

1 Carbon Mitigation in Construction Materials☆Seawater and Sea-sand Mixed Concrete☆Clean Concrete☆Slim Concrete

2 Carbon Mitigation in Construction Procedures☆Strut-less Tilt Retaining Wall☆URUP Shield Tunneling

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Today’s Topics

1. Sea-water and Sea-sand Mixed Concrete- Man-made Rock Salt -

2. Clean Concrete- 80% Reduction of Carbon Emission -

3. Slim Concrete- Structural Reinforcement & Seismic

Retrofit as well as CO2 Reduction -

Carbon Mitigation in Construction Materials

Carbon Emission Reductionapprox.50%

Sea Water & Sea Sand Mixed Concrete- Man-made Rock Salt -

☆2015 Prime Minister’s AwardArt of Manufacturing☆2015 M.L.I.T.’s Grand Prize

R&D in Construction

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1. Unconfined & Early Strength

Fresh water++ Furnace C

Sea water+ Furnace C

Sea water+ Furnace C+ P-additives+ Pozzolana

0 10 20 30 40 50 60 70

Compressive strength 28days (Mpa)

35.7

47.4

57.9

30%UP

60%UP

CombinationDiffusion (cm2/sec)

Pearmeability(m/sec)

Fresh water + Furnace C 8.2×10-2 3.3×10-12

Sea water + Furnace C + P-Additives 2.1×10-2 7.0×10-13

Sea water + Furnace C + P-Additives + Pozzolana 1.60×10-3 4.7×10-14

Epoxy-coated rebar Carbon fiber rod

Not corroded

Fresh water

3.3×10-12 (m/sec) 4.7×10-13 (m/sec)

Permeated Zone

Accelerated corrosion test after 100years

2. Permeability

3. Corrosion of Reinforcement

Sea water

Permeability : 1/70 of Furness Slug Cement & Fresh Water Not corroded

1/70

Special Features Tsunami Debris of 3・11 Earthquake Reused as Aggregates

Production Time 25% LessProduction Cost 35% Less

Expected Application -Structures under Saline Environment-

Harbour Structure Coastal Windfarm

Marine Structure Remote Island Preservation

Improved strength(200%) & impermeability(1/14)

Injection test

Improved Permeability 1/14

Enhanced Compressive Strength 200%- Bearing Strength Enhancement- Permeability Control- Liquefaction Prevention

Distance from injection pipe (cm)

Distance from injection pipe (cm)

Permeable layerImpermeable

layer

Grout pump

Dispersion additiveSpecial additive

Slug cementSea water

Pump

Sea

Impermeable layer

Contaminated aquifer

Mixer

Ajiteter

Pump

Uni

-axia

l stre

ngth

(M

pa)

Per

mea

bilit

y (m

/s)

Sea Water + P-add.

Flesh water

Sea Water + P-add.

Flesh water

Expected Application -Soils Stabilization Grout-

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最大80%低減

Low Carbon Emission Concrete – Clean Concrete -

Increasing blast furnace slug and fly ash in cementenables carbon emission reduction as high as 80%compared to conventional concrete

0

50

100

150

200

250

300

350

400

Conventional Concrete Low Carbon Emission Concrete

Carbon Emission(kg-CO2/m3)

80% ReductionR&D Inst. Wall

-80%(2010/8)Pedestrian Pavement-80%(2011/2)

R&D Inst. Seismic Wall -80%(2010/12)

Foundation Slab

-65% (2010/8)Retaining Wall Slab-75%(2010/8)

Road-tunnel Slab-65%(2010/8)

Low Carbon Emission Concrete – Clean Concrete -

Facility Foundation

-60%(2012/2)

Solar Panel Foundation

-60%(2013/6)

Underground Structure

-80%(2012/1)

Low Carbon Emission Concrete – Clean Concrete - Super Strong Concrete – Slim Concrete -High-strength & -durability in-situ concrete for low LCC RC structure

Compression Strength 180 N/mm2 7.5 times higher Tensile Strength 8.8 N/mm2 7 times higherDurability 100 yrs. or over 4 times longerCarbon Emission 100 yrs. 50 % off

High-strengthPlastic Mortar

High-strengthSteel Fiber

High-strengthOrganic Fiber

High plasticity and conventional curing enables;In-situ concrete In-situ precast concreteFactory precast concrete

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Marine Structure Retrofit by High-strength & -durability

Before After

Abrasion Protection by High-strength & -durability

Dam ApronBridge Substructure Foundation

Windbreaker by High-strength & -durability

H-steel & panel Slim Concrete

Slim Concrete

Super Strong Concrete – Slim Concrete - Super Strong ConcreteDesign-ability & Streamline by High-strength & -durability

Long Span Sky Corridor- Slim & Slender -

Wider and ThinnerCantilever Roof

‐Slim Concrete‐

1. Strut-less Tilt Retaining Wall

2. Shaft-less Shield Tunneling- URUP Shield Tunneling -

Carbon Mitigation in Construction Procedures

Strut-less Tilt Retaining WallCarbon Emission 25% LessConstruction Period 35% LessConstruction Cost 20% Less

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Depth 10m:Sheet Pile/Soldier Pile Depth 15m:Sheet Pile w/ Buttress

Strut-less Tilt Retaining WallDepth 2.5m:Steel Plate Depth 5m:Cement Stabilized Soils

ConventionalExcavation w/ Shoring

RecommendedExcavation

No Shoring

No Shoring

Steel PlateW1.5m × H3m

Strut-less Tilt Retaining Wall: ~G.L. -2.5m

■ Prototype Construction

Access Road(2014/08)

■ Actual ConstructionChannel at Power Plant(2015/10~)

改良体土留め施工ライン

Stabilized Soils Wall

粘性土(盛土)N=3

γ=16.0kN/m3

Φ=0C=20kN/m2

10°根入れ長4.0m

掘削深さ4.0m

改良体土留め

床付け面以深

‐9.0

‐8.0

‐7.0

‐6.0

‐5.0

‐4.0

‐3.0

‐2.0

‐1.0

0.0‐202468101214

水抜き鋼管*

Aco層γ=16.2kN/m3

N=1 C=40kN/m2

Ap層γ=14.2kN/m3

N=2 C=30kN/m2

B層γ=17.7kN/m3

N=8 φ=33°

GL-1.2m

底版改良

改良体土留め

8.15m

10°

4.45m

1.5m

護岸

施工延長500m以上

水平変位量(mm)

Excavation Finished

最大変位9mm

放水路

0.7m

*:水抜き鋼管は、前面の本設ブロック積み擁壁用

4.0m1.0m

Strut-less Tilt Retaining Wall: ~G.L. -5m

Wall Construction On-going

Soldier Piles Driving

Preparation for RC StructuringLeveling Concrete Placement

ExcavationStrut-less Tilt Retaining Wall: ~G.L. -5m

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strut & wales H

Conventional DesignType Ⅲ Steel Sheet Pile, L=15m1st strut & wales H-3002nd strut & wales H-350

New Design, Tilt angle of 10 degreesType Ⅳ Steel Sheet pile, L=12m

Soils: Dredged SandSoil Stabilized by Dewatering

Strut-less Tilt Retaining Wall: ~G.L. -10mConstruction boundary

(W=30m)

Inclined sheet pile type 4 L=12m

5.27m9.6m

1.6m Wide Working Space w/o Obstructions• Increase Pipe Installation Productivity• Enhance Welded Quality at Pipe Joint

Strut-less Tilt Retaining Wall: ~G.L. -10m

-20

-18

-16

-14

-12

-10

-8

-6

-4

-2

0-50 0 50 100 150 200 250 300

深度

(m)

変位量(mm)

計測値

(床付け完了3日後)

設計値

(φ=35°,ただしC=5kN/m²を考慮)

再計算値

(φ=35°,ただし見かけのC=23kN/m2考慮)

土質:成田砂

Observed Pile Tip Deformationδ=45mm

Strut-less Tilt Retaining Wall: ~G.L. -10m

Displacement in mm

Estimated Pile Tip Deformationδ=300mm

Dep

th in

m

実測値設計値

Wall displacement12~32% of calculated

Calculated max. displacement179㎜

Observed max. displacement39㎜

Viaduct of Japan Railways

Excav. Depthof 10m

16m

12m

Strut-less Tilt Retaining Wall: ~G.L. -10m

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Strut-less Tilt Retaining Wall: ~G.L. -10m Ultra Rapid Underpass(URUP) Shield TunnelingURUP tunneling is a climate-smart technology w/o access shafts resulting in the least carbon emissions.

What’s URUP?

Surface Launching

No Launch Shaft No Arrival Shaft

Small Cover Advancement Surface Arrival

Rapid Tunneling

TBM direct launch/arrival from surface ⇒ Access Shafts for launch/arrivalunnecessary

Tunneling under small tunnel cover w/o ground disruption ⇒ Time/Cost Saving

Construction Period 30% , Construction Cost 25% , CO2 Emission 60%

Job 1 : Metropolitan Express-way Road Tunnel

1.Launching af surface

3. Arrival at surface

2. TBM U-turn Excavation Dia. 13.6mTunnel Cover 0 - 25mMax. Settlements 5mm

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TBM Launching & Penetration

TBM Arrival & Breakthrough

Outbound Bore

Inbound Bore

Job 2 : Metropolitan Ring Road Tunnel

1. Launch at surface

3. Arrival at surface

2. TBM U-turn Excav. Section W=11.96m H=8.24mTunnel Cover 0.6 – 4.6mMax. Settlements 10mm

12cm

Allowing traffic above tunnelw/ cover of 1.2m at arrival

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谷津干潟

Job 3 : Slip Road Tunnel for New Interchange

URUP Tunneling

Daily Traffic of 120,000 vehicles

Single used-shield bored 4 times to create spacesfor lining structure

Primary tunnel by shield tunnelling

⑥⑤

Temporary steel lining

STEP 1

Main structure construction in segment

STEP 2

Cast in situ concrete

Grouting

Internal excavation

STEP 3

InternalExcavation

Construction Sequence

Site

East Kanto Rd.

Keiyo Rd.

Viaduct L-Wall U-Wall L-WallL=151m L=129m L=266.5m L=30m

Under PassL=70m (radius = 50m)

URUP Tunnelling Plan

Excav. Section W=4.8m H=2.15mTunnel Cover 2.8 – 10mMax. Settlements 3mm

Job 4 : Cross Harbour Gas Pipe Line Tunnel

Sea

Launching from Ground

Arrival to Ground

TBM AssemblyAnd

Launching

Advancement

Arrival

Excavation Dia.φ2.13m

Tunnel Cover0.8 – 23m

Max. Settlements5mm

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Ultra Rapid Construction Method ofUnderpass road tunnel in Developed Urban Area

Ultra Rapid Construction Method ofUnderpass road tunnel in Developed Urban Area

Trenchless Solution for Underpass road tunnel- URUP System -

Trenchless Solution for Underpass road tunnel- URUP System -

OBAYASHI

Case Study Tunnel Design Criteria

• Maximum cover : 3.0m• Underground water level : GL-5.0m• Traffic lanes : 3.65m x 3lanes (each direction)• Shoulder : 1.20m (both sides)• Slope : 5%

• Side walk : 0.75m (both sides)• Horizontal clearance : min. 14.85m• Vertical clearance : min. 6.00m

(above traffic lanes)

Soil Unit 1

Soil Unit 2N=30γ=19.0kN/m3

c=0kN/m2

φ=35.0°

N=15γ=19.0kN/m3

c=0kN/m2

φ=30.0°

Non Circular TBM Benefit

Obayashi’s Non-circular tunnel

Conventional circular tunnel

• Reduce tunnel length by 15%, and excavation volume by 28%• Achieve shallower road level

Tilt Retaining Wall URUP System

1. Platform TunnelNon-circular URUP 2. Main Track Tunnel

Non-circular

3. Platform TunnelNon-circular URUP

Surface Launching/Arrival (URUP)

Trenchless Solution for Station & Subway Tunnel

No Disruption of Ground Surface

Sustainable & Resilient Construction Method of Underground Metro System in Developed Urban Area

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Trenchless Solution for Station & Subway Tunnel

Track Concourse

Track Platform

Concourse& M.E.

Application to Underground Tunnel Reservoir

Floodwater Inflow StoredFloodwater

Floodwater Pump-up Floodwater Inflow

Non-circular tunnel configuration gives larger reserve capacity in spite ofrequiring smaller tunnel cover and pump-up facilities.

Non-circular Combined Arch Tunnel

Relieved Loads & Smaller Pump-up Facilities

Deep

Cost Reduction

Advantages of URUP for Tunnel Reservoir

Tunnel Cover min. 1.0~1.5D

Tunnel Cover 0.7mIrrespective to Geology& Tunnel Configuration

Shallow

Storage Capacity

Hydrostatic PressureEarth Pressure

Relieved Loadsand Water Head

Conventional Tunneling

URUP Tunneling

UR

UP

Con

vent

iona

l

Vertical Muck DisposalAccumulation

Sedimentation of MuckShaft

Lifting Up

Tunnel

Vessel

Easier Disposal of Sediment after Floodwater Discharge

Horizontal & Direct Muck Loading

Direct Access to Surface

Safety ImprovementTime/Cost Reduction

Advantages of URUP for Tunnel Reservoir

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Thank you for your attention.We are always at your disposal!

“The public has become increasingly aware that development shouldn’t result in a compromised and depleted environment.Enlightened citizens see sustainability, not as an unattainable ideal, but as a practical goal.”