Basil Read Annual Report 2009 | Operational review, Civils

ANNUAL REPORT 2009
Milestones in time

Group profile Group at a glance Group timeline – five years Milestones in time Five year review Board Management Group structure Chairman’s statement Chief executive officer’s review Operational review

Financial director’s report Risk and opportunity management Corporate governance

Audit/risk committee report Sustainable development

Value added statement Financial statements Administration Shareholders’ diary

Operational review

Mbombela Stadium

One of the highlights of the review period was the completion of the Mbombela Stadium in Nelspruit, despite various setbacks, from widespread labour unrest to freak storms. Handed over well before the FIFA deadline, Mbombela was the second stadium completed in South Africa, and the first stadium in the group’s portfolio. Basil Read is now completing external work around the stadium such as roads and parking.

Port of Durban

Basil Read has been extensively involved in transforming the old multi-purpose terminal at Pier One, Port of Durban, into a modern container terminal. Additional contracted work includes a parking area for the car terminal and truck staging.

Subsequent to the Pier One contract, Basil Read was also awarded the R430-million project to provide complete infrastructure for Pier Two. Construction on this project began in April 2008 and is progressing well.

Within the Durban harbour complex, during the year Basil Read continued construction of a R130-million container vehicle repair and straddle carrier workshop. This was a technically challenging project given that the workshop area for the straddle carrier is the size of a rugby field, and required specialised formwork, support and equipment. There were also significant safety and health considerations as the container vehicle repair site had been contaminated with asbestos. Appropriate preventive measures ensured no risks were posed to the health and safety of employees and contractors.

The division continued construction of the Khangela Bridge over the M4 south freeway to alleviate traffic congestion in and out of Durban harbour, with a joint venture partner.

Kusile Power Station

Work on the R2,9-billion Kusile power station contract began early in the reporting period. Located next to the existing Kendal power station in the Witbank area of Mpumalanga province, Kusile’s expected capacity will be 4 800MW, with the first unit planned for commercial operation in 2012. This is a joint venture with three other construction companies and work during the year focused on planning, piling tests and soil investigation.

Ohlanga

During December 2009, Basil Read was awarded the contract for the Ohlanga outfall sewer, pumpstation and rising main, on site between Umhlanga Rocks and Umdloti in KwaZulu-Natal. The scope of works includes the construction of concrete chambers and minor road works. The 24-month contract has a total value of R95 million and work commenced in January 2010.

Water infrastructure

In the years ahead, the South African government is planning a R30-billion investment to upgrade and expand water infrastructure. Proposed energy investments, both public and private sector, include green energy, independent power plants, nuclear plants and power projects in sub-Saharan Africa. Once conditions normalise in the mining sector, a resurgence is expected in process plants and infrastructure as mining companies activate deferred projects. Overall the division is well placed to participate in this activity, given its expertise and track record.

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