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The outlook for Malaysia's construction sector looks promising in 2017, particularly for infrastructure construction players, given the slew of government projects

 

PETALING JAYA: The construction sector outlook for 2017 seems promising, particularly for infrastructure construction players, given the slew of government projects.

A head of research said ongoing projects like the Mass Rapid Transit 2 (MRT2), Tun Razak Exchange and Petronas’ Refinery and Petrochemical Integrated Development (Rapid) project site in Pengerang will largely contribute to the order books of infrastructure construction players for the year.

“Property construction activities are not going to be as buoyant. This is due to the property development cycle, which will continue to be soft this year,” he said.

Apart from ongoing projects, the construction sector holds more upside in light of the 12.8 billion ringgit (US$2.85 billion) Sabah portion of Pan Borneo Highway as well as the upcoming High Speed Rail (HSR) projects.

According to an Affin Hwang Capital sector report, three packages from the Sabah portion of the Pan Borneo Highway have been awarded, with the remaining packages targeted to be awarded by end-2017.

The award deadline of end-2017 is to ensure the project can be completed by March 2021.

Warisan Tarang-UEM Group-MMC Corp joint venture company, Borneo Highway PDP Sdn Bhd, was appointed as the project delivery partner or the Pan Borneo Highway Sabah project in April 2016.

“Construction contract awards for Pan Borneo Highway Sabah will benefit contractors with established track records and precast concrete product manufacturers in Sabah.

“Potential beneficiaries are Suria Capital Holdings Bhd-Gabungan AQRS Bhd JV and WCT Holdings Bhd, which are bidding for the project,” said Affin Hwang Capital.

In addition, there are more major property development projects planned in Sabah, such as the redevelopment of Kota Kinabalu (KK) Port with an estimated gross development value of over 5 billion ringgit.

The redevelopment of KK Port, which includes the Sabah International Convention Centre, comprising One Jesselton, Jesselton Quay, and KK Convention City which are developed by the Suria-Gabungan AQRS JV, SBC Corp Bhd-Suria JV and Mah Sing Group Bhd respectively.

Affin Hwang Capital also reported that Suria planned to acquire 28.9 acres at KK Port for about 350 million ringgit to develop an international cruise terminal as part of the integrated mixed development project.

Currently, SP Setia is developing the 2.2 billion ringgit Aeropod project in Tanjung Aru while the state is developing the 4 billion ringgit Tanjung Aru Eco Development.

Under the 11th Malaysia Plan 2016-2020, a key focus for Sabah’s development is to invest in infrastructure to improve connectivity within the state and international linkages.

Besides Pan Borneo Highway Sabah, there is a planned 311 million ringgit Kota Kinabalu Bus Rapid Transit project.

As part of the Sabah Development Corridor, there are plans to build a new KK Airport, light rail transit system in KK, new railway lines to connect the north and east coasts of Sabah as well as upgrading of Lahad Datu Airport.

Meanwhile, CIMB Research opined that the KL-Singapore HSR theme remains relevant to rail players, such as Gamuda, IJM Corp and WCT, though the joint tender for the HSR system will only commence in the fourth quarter of this year.

“The decision on who to award the rail system to will be made by end-2018. It remains to be seen if the timeline will also cover the civil works tender. Apart from a joint tender for cross-border HSR operations, Malaysia will also put up its own tender for a domestic operator to run the domestic service within its borders,” said CIMB Research.

The project time frame set in the bilateral agreement signed recently continues to put 2026 as the targeted completion date.

This suggests an unchanged eight-year construction time frame, assuming that construction of the project commences in 2018.

A majority of 335km of the rail system will be in Malaysia, while 15km will lie in Singapore.

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A Pennsylvania congressman is introducing two bills to boost skilled labor for the nation’s employee-starved construction industry, using a combination of apprenticeships, job-training, tax credits and temporary visas to foreign workers to help builders meet the demand for work.

According to a press release by U.S. Rep. Lloyd Smucker, the Workforce for an Expanding Economy Act and the Workforce Tax Credit Act represent a new attempt to create an immigration visa system for less-skilled workers to do year-round, non-farm work. Both the employer and the laborer would have to be approved by the federal government, and the workers could only work for an approved employer at the approved location.

The Workforce Tax Credit Act would encourage charitable donations for community-based apprenticeship initiatives, career and technical education, workforce development and K-12 educational preparedness by offering donors a tax credit.

Eighty percent of construction firms report they are having a hard time filling hourly craft positions that represent the bulk of the construction workforce, according to the results of an industry-wide survey by the Associated General Contractors of America (AGC).

New Jersey’s construction industry is struggling through its own skilled employee shortage, despite paying good wages and requiring little college-level education.

According to the New Jersey Department of Labor, three-quarters of construction and utility occupations require only a high school degree or less, yet the average wage of $72,980 beats the statewide average of by more than $10,000 per year.

In 2016, employers in the construction and utilities cluster paid over $12.1 billion in total wages, or 5.8 percent of private sector wages paid statewide.

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Izmir,Turkey (March25,2019)- Following successful test operations of Yanmar’s MakinaGetir construction equipment sharing platform in Turkey’s Izmir region in 2018, the company will expand service delivery towards full-scale deployment of an integrated platform throughout Turkey in FY2019.

The centennial of the founding of the modern state of Turkey is set to be celebrated in 2023 and the country is host to range of large scale infrastructure, energy and transportation projects that are intended to contribute to its 2023 vision. Along with increased sales of construction equipment, the rental market is slated for significant growth, with customer needs also expected to diversify. While equipment owners are struggling with the challenges of machinery management to optimize the use of equipment, renters are looking to realize cost savings, and the efficient utilization of under-employed or idle machinery is a pressing issue in Turkey’s construction industry.

“With so many construction projects either planned or already under way, there is a need to realize as much efficiency as possible from Turkey’s construction sector,“ said Mustafa Kemal ERDOĞAN, Executive Manager, Yanmar Holdings Co. Ltd. Turkey Representative Office. “With the introduction of this service under the management of Yanmar Turkey Makina A.Ş, Yanmar will help both owners and users get the most out of existing equipment, creating new business opportunities and value for both equipment owners and users alike.”

With long involvement in the construction equipment domain through companies in Japan and Europe engaged in the manufacture and sales of construction equipment, Yanmar launched its sharing platform in the Izmir region of Turkey in June of 2018. Tapping into healthy demand in Turkey’s dynamic construction equipment sector, more than 2,600 units of construction equipment have been registered to the platform in Izmir and surrounds.

Through this early introduction of the sharing platform in Turkey’s emerging economy, Yanmar is promoting efficient use of the country’s construction equipment and exceeding customers’ expectations by delivering new value. Having established its credentials in this new business model, Yanmar aims to deploy the rental business to applicable businesses and markets where market characteristics are amenable.

The MakinaGetir platform will also be featured at the Marble Izmir Fair in Turkey, held over March 27 to 30.

Construction Equipment Sharing Platform

Service name: MakinaGetir
Commencement of operation: Service expansion from April 1st, 2019
Area of operation: Turkey
URL: https://www.makinagetir.com/
Main features:
• Meeting Construction Equipment Needs
MakinaGetir is an online platform that matches construction equipment machinery owners with user. Users can use the simple interface to select from more than 2,600 types of registered construction equipment, allowing them to rent the machinery they need, when they need it and contributing to cost reductions.

• Supporting Efficient Use of Machinery
One of the merits of the system for owners of machinery, is that just by registering their equipment on MakinaGetir, they make themselves available to be easily contacted online by new customers, a process that up to now has presented significant hurdles in traditional business models. Machinery utilization is increased and idle assets can be put to work.

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Officials are investigating a fire at a construction project at a seaside Connecticut park.It's the second fire to break out this week at the Silver Sands State Park Project in Milford.

MILFORD, CONN. (AP) — Officials are investigating a fire at a construction project at a seaside Connecticut park.

It's the second fire to break out this week at the Silver Sands State Park Project in Milford.

Authorities say two large storage containers housing construction materials were found burning on Sunday.

The containers were part of the construction for a $9.1 million project to build a bathhouse, concessions stand and office space. They were scheduled to open Memorial Day weekend.

 

On Tuesday, a fire destroyed under-construction buildings on the site. There were no reports of injuries.

The project was a point of contention between state and city officials, some of whom considered it too large and expensive.

The Hartford Courant reports that authorities have not ruled out arson as a possibility in either fire.

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 

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TOWN OF TONAWANDA, N.Y. (WIVB) - A major construction project in the Town of Tonawanda ramps up again this week.

The state DOT began replacing two bridges on the I-290 last spring.

That was phase one. Phase two starts on Wednesday.

Traffic will be reduced to two lanes in both directions and there will be a temporary bridge in place.

The DOT expects construction to be completed by this fall.

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TOWN OF TONAWANDA, N.Y. (WIVB) - A major construction project in the Town of Tonawanda ramps up again this week.

The state DOT began replacing two bridges on the I-290 last spring.

That was phase one. Phase two starts on Wednesday.

Traffic will be reduced to two lanes in both directions and there will be a temporary bridge in place.

The DOT expects construction to be completed by this fall.

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he following is a news release from the City of Pocatello:

Monday, March 25, crews with the City of Pocatello Water Department will begin their project on Fir Street.

Workers will be installing a new water main line, fire hydrants, and water meter boxes. Crews will work between the hours of 7 a.m. to approximately 5:00 p.m. Monday through Friday. During the project, access to the construction area will be restricted and sections of the street will be completely closed while workers are digging. However, every effort will be made to provide local access to the area when possible. Parking will also be restricted in the construction zone and residents are asked to park all vehicles away from the area during the day. At the close of each day, access will be restored to all properties. 

 

The work may cause short-term disruptions to water service. Individuals in and around the construction zone are encouraged to keep a supply of drinking water available.

Officials ask parents and guardians to warn children about the safety hazard and to have them stay a safe distance from the construction area.

The project is anticipated to take three weeks to complete but due to unforeseen circumstances, the work schedule may change.

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he following is a news release from the City of Pocatello:

Monday, March 25, crews with the City of Pocatello Water Department will begin their project on Fir Street.

Workers will be installing a new water main line, fire hydrants, and water meter boxes. Crews will work between the hours of 7 a.m. to approximately 5:00 p.m. Monday through Friday. During the project, access to the construction area will be restricted and sections of the street will be completely closed while workers are digging. However, every effort will be made to provide local access to the area when possible. Parking will also be restricted in the construction zone and residents are asked to park all vehicles away from the area during the day. At the close of each day, access will be restored to all properties. 

 

The work may cause short-term disruptions to water service. Individuals in and around the construction zone are encouraged to keep a supply of drinking water available.

Officials ask parents and guardians to warn children about the safety hazard and to have them stay a safe distance from the construction area.

The project is anticipated to take three weeks to complete but due to unforeseen circumstances, the work schedule may change.

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"Significant progress" during 2018 with the construction of Vogtle 3 and 4 means Southern Company expects the two AP1000 units to be completed on schedule and to budget, the company said during its fourth quarter results call.

Construction work at Vogtle (Image: Georgia Power)

Construction of Vogtle unit 3 began in March 2013 and unit 4 in November the same year. Southern Nuclear and Georgia Power, both subsidiaries of Southern Company, took over management of the construction project in 2017 following Westinghouse's Chapter 11 bankruptcy.

"2018 was a year of incredible accomplishments for Southern Company," said President and CEO Thomas Fanning. "We entered the year with a great deal of uncertainty regarding corporate tax reform and our own first full year as general contractor at Vogtle 3 and 4."

He noted that last July the company revised its "estimated costs to complete and recalibrated site production expectations with a site-wide reset". Since then, he said, Southern Company has "achieved a trajectory of staffing and productive hours worked per week that is ahead of what we targeted on our last earnings call". He added, "We continue to have a lot of work ahead of us to sustain this performance but we are pleased with our progress and are confident that we can meet the schedule approved by our regulators."

Fanning said Southern Company had achieved its "major 2018 construction milestones". The Vogtle 3 and 4 project is now about 74% complete, he announced.

"During the past three months several significant milestones were achieved," Fanning said. "Unit 3 milestones included setting the first reactor cooling pump, placement of the third and final containment ring and setting the main control room roof. At unit 4, we set the pressuriser and second steam generator inside the containment vessel. Additionally, since our third quarter call, the remaining two AP1000 units in China - Sanmen 2 and Haiyang 2 - achieved commercial operation. Lessons learned from China will continue to benefit our project."

Fanning noted that Southern Company had said in November it was targeting to ramp up to 140,000 productive hours of work per week by March. "So far, for the month of February, we have averaged 141,000 earned hours per week. In fact, last week, we achieved 146,000 hours. We are focused on sustaining this progress throughout 2019 and into spring of 2020.

"We currently estimate that we need to sustain approximately 110,000 weekly earned hours in order to meet the November 2021 and November 2022 regulatory-approved schedule," Fanning said.

He noted the company is working on a schedule to complete the units by April 2021 and April 2022, respectively, in order to gain margin on the November schedule.

"We are currently in the midst of re-baselining our work for Vogtle units 3 and 4," he said. "This re-baselining effort will refine the weekly work plan for the remainder of the project. Our over-arching objective in the re-baselining effort is to maintain the aggressive work plan at the site allowing us to preserve as much margin in our schedule as possible to the November 2021 and November 2022 regulatory-approved in-service dates. While it's important to acknowledge this re-baselining effort is not complete, we continue to expect that project schedule and capital cost forecast will be consistent with our prior estimates. And, based on early indications, we also expect a reduction in the amount of remaining productive hours needed to complete the project.

"Everything we see right now, as of today, says cost and schedule are preserved and we expect to have to spend less hours to complete the project than what is currently in our budget." He said Southern Company foresees a reduction of around 600,000 hours.

Georgia Power is expected to submit a report on the re-baselining with the Georgia Public Service Commission no later than 15 May.

Researched and written by World Nuclear News

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China's Ministry of Environment is proceeding with environmental impact assessment for a project to build an ACP100 small modular reactor (SMR) at Changjiang, Hainan, with construction to begin by the end of this year.

Potential applications of the ACP100 (Image: CNNC)

According to Chinese publication Nuclear World, first concrete is to be poured on 31 December. Construction is expected to take 65 months, with the 125 MWe unit expected to start up by 31 May 2025, subject to relevant governmental approvals.

The ACP100 was identified as a 'key project' in China's 12th Five-Year Plan, and is developed from the larger ACP1000 pressurised water reactor (PWR). The design, which has 57 fuel assemblies and integral steam generators, incorporates passive safety features and will be installed underground. China in 2016 announced plans to build a demonstration floating nuclear power plant based on the ACP100S variant of the China National Nuclear Corporation (CNNC) design.

A two-unit demonstration plant was originally planned for construction by CNNC New Energy Corporation, a joint venture of CNNC (51%) and China Guodian Corp in Putian county, at the south of Fujian province. In early 2017, the site for the first ACP100 units was changed to Changjiang, on Hainan island, with a larger reactor to be built at Putian.

The ACP100 plant will be located on the northwest side of the existing Changjiang nuclear power plant, according to the 22 March announcement. The site is already home to two operating CNP600 PWRs, with two Hualong One units also planned for construction.
 

Researched and written by World Nuclear News

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We get it. Dallas is a growing city. Improvements and maintenance are part of the deal. What we can’t abide, though, is the chaos of construction projects.

Downtown has become an urban maze of closed streets and sidewalks, odd detours and makeshift crosswalks that befuddle drivers and pedestrians. Whoever first coined the expression, “you can’t get there from here”  must have had the central business district in mind.

Joking aside, city and private construction crews haven’t done a very good job of making repairs and improvements without excessively interrupting everyday commerce. City code requires contractors to maintain accessible walkways or pedestrian detours during construction. Too many contractors fail to do this, and after they have completed the job, fail to remove traffic barricades in a timely fashion. In truly byzantine fashion, detours from one project can end up detouring into other projects.  

Between August and mid-March, city public works officials issued 314 citations to contractors for violations committed while working in the right-of-way. The most common violations  involve an improperly closed-off street or sidewalk, and have become so prevalent that city staff is considering asking the city council to hike fines, which generally cap at $500 per violation, per day, for repeat offenders.

What might be more effective on city contracts is to hold a contractor’s record of bad behavior against them during their future bids. And in the case of private construction projects, the city could do a better job of outing code violators to the companies that hire them in the hope that gets action from the folks who are paying the bill.              

There is no easy way to rebuild in a crowded urban area without causing some inconvenience.  This year, parts of about 20 streets in the central business district are either under repair or set to be repaired, meaning the chaos isn’t likely to let up anytime soon.          

We do know that if a contractor working on our house blocked all doors, forcing us to climb in through a window, or failed to clean up their mess, we would be outraged. We certainly wouldn’t call them again to bid on the kitchen remodel.    

No one likes the hassle of construction. But if you’re going to block a street or sidewalk, be quick about it and have an eye on keeping us all moving.

This editorial was written by the editorial board and serves as the voice and opinion of The Dallas Morning News.

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