INFRA EU 7

www.euinfrastructure.com • Vol 5 Issue 2

BUILDING VALUEWith Mott MacDonald’sManaging Director Mike BarkerPage 36

TRACK STARRichard Brown on Eurostar’s expansionPage 56

AIRPORT PLANNINGFraport CEO Wilhelm Benderoutlines the challengePage 84

VINCI’S GRAND

VISION

John Stanion, CEO of Vinci PLC:“We have to re-engineer ourwhole infrastructure for thefuture”

INFRASTRUCTURE OPTIMISATIONWith Christian Berg, Hafslund; Giovanni Bisignani, IATA;Ben Swagerman, KLM; Nico Westpalm van Hoorn, Port

of Rotterdam; Magnus Norrström, Skanska

Inside the world’s largest construction firm, with chief executiveJOHN STANION Page 28

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AmericanSuperconductors.indd Sec1:5AmericanSuperconductors.indd Sec1:5 1/9/08 15:18:081/9/08 15:18:08

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Unless you’ve been living in a cocoon for the past 18 months, you can’t have

missed a sea change in the global financial markets. Businesses across all in-

dustry verticals are under serious pressure due to a perfect storm of rising oil

prices, high raw materials costs and fallout from the US subprime meltdown

– and the infrastructure sector is no exception.

Across the globe, governments are turning to the private sector to fund critical in-

frastructure developments. Growth in private lending has increased almost fivefold in

the last 10 years, yet when governments should be turning to the private sector to meet

the infrastructure funding gap, potential investors are in turmoil due to uncertainty in

the global liquidity markets. Selling project value has never been so important. While

we’re not at the crisis stage yet, we can expect to experience a tougher short-term out-

look than we’ve experienced in recent years. It’s time to tighten our belts and empha-

sise the positives.

The idea of sustainable development will be key in the months (and years) ahead.

Improving the energy efficiency of our buildings and structures – as well as the con-

struction process itself – is an increasingly attractive way to build value into any project.

It’s not just about bowing to the eco-lobbyists, either – cutting down on waste and re-

thinking attitudes towards the consumption of raw materials makes good business

sense as well.

Mike Barker, MD at construction heavyweight Mott MacDonald, believes that

only a concerted focus on making sustainability an industry best practice will suffice. In

fact, he believes it won’t be too long before the implementation of environmentally

sound business practices will move from corporate hot topic to just business-as-usual.

“Sustainability is going to become second nature, because it has to,” he says. “It’s going

to become more and more central to everything we do, and is going to be totally em-

bedded in the fabric of our culture as an industry.”

For this to happen, of course, requires top-down leadership – and nobody is more

committed to the value of sustainability than Vinci, the world’s largest construction and

engineering firm. “This is a huge area for us,” says CEO John Stanion. “We’re mea-

suring our waste production, we’re measuring our power consumption, our fuel con-

sumption, and we’re setting targets to reduce in every area.”

As Stanion points out, the infrastructure decisions we take now will influence the

lives of Europeans for years to come. “The revolution we face today is just as great as

the revolution they faced 200 years ago with the invention of the steam engine. Now

we have to re-engineer our whole infrastructure for the future.”

It may be hard to think long-term under such short-term pressure, but it is essen-

tial to our success as an industry – and as a well-balanced, fully functioning society.

Ben Thompson

Senior Editor

FROM THE EDITOR

7Navigating the perfect stormCredit crunch, housing bubble, energy crisis: the infrastructure industry facesits fair share of challenges over the short-term.

“Each new link in an infrastructurenetwork contributes to the performanceof existing links”– Richard Brown, CEO, Eurostar (page 56)

“The major challenge will be to organiseconstruction activities in a way thatminimises negative effects”– Wilhelm Bender, CEO, Fraport (page 84)

“Working with infrastructure is a long-term investment and represents a contract with society”– Christian Berg, CEO, Hafslund (page 116)

ED NOTE :BMUS 13 5/9/08 15:05 Page 7

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Harnessing hydropowerAfter a huge leap forward in 2007, Hafslund is focusing on environ-mental responsibility and the profitable development of renewableenergy. President and CEO Christian Berg explains how he plans tokeep up the current momentum.

CONTENTSLEAD FEATURESVOLUME 5 ISSUE 2 Q3 2008 www.euinfrastructure.com

Track starRichard Brown is a central figure in one ofthe most exciting periods in the history ofEuropean railways. In an exclusive interview,he discusses the future of rail in Europe andwhy expanding the network is crucial.

56

36 Getting the job doneEU Infrastructure meets Mott MacDonald’s MDof Buildings and Structures, Mike Barker, totalk about why managing large projects re-quires a unique blend of vision and experience.

The Vinci codeAt the start of the year,Vinci’s order book stoodat an impressive €21.5billion – enough to makeit the world’s largest con-struction and concessionfirm. In this exclusive in-terview, Chief ExecutiveJohn Stanion explains thekey principles behind thecompany’s success.

928

116

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42 Poland switches onThe value of contemporary architecture

48 A stronger year ahead Reports of the demise of infrastructure have

been greatly exaggerated

50 A whole range of cranesBy Christian Schorr-Golsong

52 Intelligent technologyNew technology for road building wins cost

and energy savings

54 Project watchStadium development in the EU

64 Customer centricity for London’spublic transportWith Phil Pavitt, CIO Transport for London

68 Sustainable transportBy Eskil Sellgren

74 On the right trackWith Weidmüller’s Detmar Saalmann

76 Urban transportUK scheme shows the way

78 The road to successIngemar Skogö on the challenges of managing

a national road network

80 Central and Eastern Europe The next logistics hotspot?

82 Techno-tolling in Eastern EuropeMalavika Srinath on road user charging

36

CONTENTS EU INFRASTRUCTURE

42

Fraport’s forecast of air traffic demand at Frankfurt airport

The design for theAfricarium atWroclaw Zoo,

PolandMott MacDonald’s award-winningManchester Civil Justice Centre

66 Frank Walenberg, KEMA RailTransport Certification100 Johan Öhgren, Acquris 114 Anna Squires, Etherstack

ASK THE EXPERT

11

84

66 Frank Walenberg 68 Eskil Sellgren 70 Roger-André Dirksmeier

VOLUME 5 ISSUE 2 Q3 2008 www.euinfrastructure.com


110 Technology at the topWith Ailsa Beaton, CIO, Metropolitan Police

112 Building the futureWith Skanska’s Magnus Norrström

122 Case studyLynn and Inner Dowsing offshore wind farm

124 Wind turbine global demandThe wind turbine industry races to catch up

with soaring demand

132 Environment and innovationprojectsWith Fulvio Conti, CEO of Enel

134 Reaching for successEU Infrastructure takes a look at new chemicals

legislation

CONTENTS

84 Leading the wayWith Fraport’s Dr Wilhelm Bender

88 Technology to the rescueWhy IT is crucial to the aviation industry

95 Airport ITThe beating heart of a modern airport

96 Securing air travelWith Ben Swagerman, SVP of KLM

98 Executive interviewSecurity solutions for infrastructure

102 Airport screening Market set to take off

104 Protecting against terroristsBy Dr Jurek Tolloczko

105 Industry insightSo where exactly are my assets?

106 The shipping newsOperations at the Port of Rotterdam

70 Rail protection 126 Wind power

ROUNDTABLES

12

74 Detmar Saalmann 98 Eric Bergeron 100 Johan Öhgren 126 Andreas Reuter

EU INFRASTRUCTUREVOLUME 5 ISSUE 2 Q3 2008 www.euinfrastructure.com

54

Artist’s impression of London’s Olympic Stadium for the 2012 games

IN THE BACK

138 In focus 140 In review142 Column 144 Final word


Deerns.indd Sec1:85Deerns.indd Sec1:85 1/9/08 15:20:161/9/08 15:20:16

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18-20 November 2008 The Ritz-Carlton, Penha Longa

Find Out MorePhone Fraser Jamieson on +44 117 915 4795Visit www.ngtsummit.com

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16 www.euinfrastructure.com

16UPFRONTP18 The Burning IssueP20 Top 10: Countries Producing Bioethanol EnergyP22 The Five-Minute ExecutiveP24 From the VaultP26 Around the World in 80 Days

with total losses estimated to reach over US$500 bil-

lion. So how will the crisis impact on the infrastruc-

ture sector?

“Infrastructure finance has shown itself to be

more resilient to the credit crunch than many

other markets, boasting a good track record of

well-structured deals supported by stable as-

sets,” argues Richard Abadie, global head of

PricewaterhouseCoopers’ Infrastructure Finance

Advisory business. “Fundamentally, the appetite

for infrastructure finance remains strong, espe-

cially for core, stable operating infrastructure.” As

evidence of this trend, he points to a growing

pipeline of new projects (especially in emerging

markets) and a rise in the number of infrastruc-

ture funds.

Nonetheless, he concedes that the credit crunch

and global economic slowdown will continue to

dampen activity in all financial markets, and warns

that the infrastructure sector will be no exception.

CAN INFRASTRUCTURE ESCAPETHE CREDIT CRUNCH?

At a time when governments are, or should

be, looking for private finance to help fill

the gap left by government underinvest-

ment, the world’s financial markets have

been hit by the credit crunch. The collapse of confi-

dence in the banking sector that followed the crisis

in the US subprime property market sent shock

waves across the entire global financial community,

UPFRONT EU INFRA:12june 5/9/08 13:21 Page 16

17www.euinfrastructure.com

And while good deals with appropriate risk ap-

portionment and strong commercial structures will

continue to find finance, it is unreasonable to ex-

pect a quick return to the peaks of recent years.

“While some borrowers as well as many govern-

ment procurers refer to terms reverting back to the

height of the market, it is a naïve notion to expect

the markets to revert to the low pricing obtained in

the first half of 2007,” concludes Abadie. “Such

conditions are unlikely to be seen again, or at least

not in the average career-span of most infrastruc-

ture financiers.”

FAST FACTSThe infrastructure sector sawrecord deal volumes last year,

with a total value of

€217

A recent OECD study estimates that by 2030, around

will be required to meet globalinvestment needs in roads, rail,telecommunications, electricity

and water

€36trillion

billion

Construction jobs will be neededin the UK alone every year be-

tween now and 2012 to replacethose leaving the industry and to

fill new vacancies

90,000

The industry also witnessed a

increase in the average deal size90%

“The financial risk of the infrastructure business is

largely driven by the borrower; it is therefore rea-

sonable to expect short-term reductions in prof-

itability and possible debt restructuring where

borrowers have overlaid excessive financial risk over

the long-term fundamental business risk,” he says.

The long-term health of the infrastructure fi-

nance markets is, he continues, dependent on the

return of the institutional debt markets to the infra-

structure sector. Until then borrowers, and conse-

quently users and taxpayers, will continue to pay

higher prices for private finance.

While many retailers around the

world are suffering from deteri-

orating consumer confidence,

there is one channel of retail

that will continue to boom. According to the

latest report from Verdict Research, a

Datamonitor company, retail sales at airports

will grow by 11 percent in 2008 to US$30bil-

lion, making it the fastest growing channel of

retail after the internet. Indeed, rather than

slow, retail sales are set to continue to grow

strongly over the next five years, particularly

in emerging markets, driven by the rapid in-

crease in air travel and major investment in

new airports and retail facilities.

AIRPORT RETAILTO SOAR

Areport by the Energy Saving

Trust saw the UK crowned as

the least efficient energy users

in Europe. The population

were less likely to turn off standby on

appliances, but more likely to get in the

car for a short journey than European

counterparts.

UK LEAST EFFICIENTENERGY USERS



Sustainable transportAntonio Tajani, European Commissionerfor Transport

Transport policy reflects the dynamism of

the sector it represents – it is always on the

move. It has developed greatly over the years

and delivered excellent results. However, more

still needs to be done. That is why I want to pro-

mote transport that is competitive and of high

quality, safe and sustainable, within a compre-

hensive framework. The Lisbon Strategy shows

the way: efficient, high quality transport at af-

fordable prices and based on infrastructure that

binds Europe together. This package is about

tackling pollution and climate change, and mak-

ing sure the polluter and not the taxpayer pays

for environmental damage. Among the results

will be greener transport, fewer emissions, up to

eight percent less fuel consumption by lorries

and fewer hold-ups for all road users. Delays,

unnecessary emissions and soaring costs are

bad for transport companies, for their clients

and for all of us. A more efficient and sustainable

transport system will, in the long run, be a more

user-friendly and cheaper transport system.

Playing catch-upJos Dings, Director of the EuropeanFederation for Transport and the Environment

Making road users pay for the negative

impacts of their operations is critical to a sus-

tainable transport policy in Europe. The EU

has certainly taken its time. Seven years after

Switzerland started charging road freight op-

erators for the environmental and health im-

pacts of their journeys, EU transport policy is

finally catching up. Unfortunately, this pro-

posal seems to take EU transport policy two

steps forward and one step back. Member

states will no longer be banned from charging

trucks for the negative environmental and

health impacts of their journeys. But the

charges will be capped to such a degree that

the areas that suffer the worst environmental

impacts will be unable to set charges that re-

flect the real costs. In particular, the decision

to set a cap on charges makes no sense eco-

nomically or environmentally, and should be

scrapped. The Parliament and Council have

their work cut out to make sure the proposal

will really make transport greener.

Polluter must payMichael Robson, Secretary General of theEuropean Rail Infrastructure Managers

This marks an important milestone in the

drive to internalise the external costs of road

transport, which will put the ‘polluter pays’

principle into practice. The rail sector is in

favour of internalising the external costs of all

transport modes and has long argued that EU

member states should be able to apply inter-

nalisation to road freight transport as they

currently can do for rail transport. The indus-

try thus welcomes the Commission’s propos-

al to revise the Eurovignette Directive,

including the suggestion to promote the de-

velopment of more sustainable mobility

through the earmarking of revenues. Track

charges are the rule in Europe, while road

charging is the exception. The rail industry is

fully accountable for its environmental im-

pact, while the road industry produces pollu-

tants that it is never charged for. It is now time

to act to ensure that we secure a level playing

field in the transport market. We believe in the

principle that the polluter must pay.

THE BURNING ISSUEGreener transportThe EU Commission recently announced a new set of measures aimed atgreening the transport sector, in part through charging heavy goods vehiclesfor infrastructure use. What does the industry think?18


VNE.indd 19VNE.indd 19 1/9/08 15:26:011/9/08 15:26:01


SLOVENIAN TUNNELINTELLIGENCE

Works have been completed in another of

the Slovenian tunnels – the Šentvid tun-

nel. Its final opening has been eagerly

anticipated and the completion times

were very short.

Control and monitoring systemIskra Sistemi is equipping the 1060m long tunnel

with the control and management system (i.e. the

most intelligent part of the tunnel safety equipment).

The basic elements of the system are local stations

built in the emergency call niches and sub-control tun-

nel centres, and the system is completed by control

computers and software in the Smodinovec Control

Centre from which the Šentvid tunnel is managed.

Clear and reliable Iskra Sistemi uses a functionally clear and reliable

concept of tunnel control. The concept used is incom-

parably more adaptable than systems that have au-

tonomous controllers, for individual subsystems with

a single data concentration point. In the event of a fail-

ure or interruption of communication with a local con-

troller, the entire control system continues to operate

normally except for the small part of the tunnel cov-

ered by the failed local controller.

Safety firstThere is actually a lot of equipment in the tunnel,

although you only notice traffic signs, illumination and

fans when passing through, while the most important

system taking care of tunnel control and safety is hid-

den from the eyes of the drivers. Yet it depends on the

tunnel control system whether the equipment installed

will detect any hazard in the tunnel in time – and react

properly. The safety of the Šentvid tunnel depends on

the speed and accuracy of reaction. If the installed sys-

tem saves human lives, our job has been done well.

And this is just what happened on the first day of the

tunnel’s operation.

percent of the EU’s final energy con-

sumption. A study was conducted

by EBIO about bioethanol produc-

tion in the European Union (all figures

are in million litres).

The EU is working to reduce

the effects of climate change

and establish a common en-

ergy policy. By 2020, renew-

able energy should account for 20

TOP 10

Top 10 countriesproducing Bioethanolenergy.

20%of the EU’s energy

consumption will berenewable energy

by 2020

1

43

65

87

109

2GERMANY

SPAIN

FRANCE

SWEDEN

ITALY

POLAND

HUNGARY

LITHUANIA

NETHERLANDS

CZECH REPUBLIC

20431mL

402mL

250mL

140mL

128mL

120mL

34mL

18mL

15mL

15mL



Airports are caught in the middle of two opposite dynamics:

growing global demand for capacity and reducing the car-

bon footprint of operations. Combibox Systems, the pioneer

of in-ground support systems, is devoted to prove the ben-

efits of using direct electricity as a way to progress.

Combibox Systems has recently carried out an environmental im-

pact analysis of different support solutions to provide aircraft parked

at the gate with ground power, pre conditioned air and potable water.

“We have increasingly devoted time and energy to research and talk

about the environmental benefits of our concept of in-ground supply

of ground support,” says Leif Lindh, President of Combibox Systems.

Using direct electricity with an in-ground system to provide

400Hz power reduces the environmental impact equivalent to 32 tons

of CO2 per year for a typical narrow body gate, according to the study

by Combibox. If an aircraft parked at a gate uses only its own APU (jet

fuel driven power generator) for the complete turn around, this results

in yearly emissions of 520 tons of CO2 for just one gate. Using diesel

powered GSE yields approximately 95 tons of CO2 yearly for just one

gate and for the supply of ground power alone.

Similar results can be found for PCA, potable water and lavatory

servicing in terms of substantial CO2 savings per year. Combibox

Systems reduces the number of diesel powered mobile units on the

apron and minimises the use of the aircrafts own APU per turn-

around. This is achieved by the centralised generation

of support media and in-ground distribution to pits

installed in the apron close to the aircraft.

“In this day and age every source of emis-

sion associated with air traffic must be con-

sidered and minimised by airports to create

the eco-friendly airport for the future,”

says Leif Lindh. “And we aim to be part

of this process by reducing emissions

from ground support activities while

also increasing profitability and effi-

ciency to meet the growing global de-

mand for air traffic.”

Boeing and Dubai-based airline Emirates celebrated the de-

livery of a 777-300ER (Extended Range) and a 777-200LR

(Longer Range) in August, marking the first double 777 de-

livery to a Middle East airline.

These new 777s are the 62nd and 63rd delivered to Emirates, one

of the world’s biggest operators of the most successful large twin-en-

gine aircraft flying today. To date, 56 customers from around the world

have ordered 1092 777s. Boeing has more than 355 unfilled orders for

the 777, worth more than US$91 billion at current list prices.

BOEING DELIVERS TWO 777MODELS TO EMIRATES

COUNTING CARBON

The EU’s chemicalindustry produces 31% of

the world’s chemicals (p134)

There are

takeoffs and landingsdaily at Frankfurt

Airport (p84)

1250There are

Police Officers in the Metro-politan Police Service (p108)

31,000

is allocated to bring world-classarchitecture to life in Poland to 2012 (p40)

Total Vinci Group revenues were

in 2007 (p28)€30.4 billion

€2.9 billion

Rotterdam’s entire port

and industrial complex covers

10,500 hectares (p106)

2ISSUE INNUM8ERS 3

86UPFRONT EU INFRA:12june 5/9/08 14:13 Page 21


In the past five years, the construction

sector here grew 37 percent. In addition,

the real estate sector contribution to

Dubai’s GDP grew 86 percent at an annual

rate of 16.7 percent. Property construction

is now a key part of Dubai’s continued eco-

nomic growth.

The aim is to evolve as a global lifestyle

provider and contribute to the various non-

oil growth sectors of the economy. The

company has already diversified its busi-

ness interests to six key sectors including

property, healthcare, education, malls, hos-

pitality and leisure, and finance.

The Dubai property market has evolved

as a direct response to market demand.

The population of the city is growing, both

in terms of residents and tourists. The ad-

ditional residential units that are being

added on can only meet part of the bur-

geoning demand.

We have unveiled several prestigious

properties. Our flagship project, being

completed on schedule, is the US$20 bil-

lion Downtown Burj Dubai. This is a mixed-

use, 22 million square foot development

spread over 500 acres. The project com-

bines commercial, residential, hotel, en-

tertainment, shopping and leisure outlets

in open green spaces dotted with lakes

and other water features.

Located at its centre is the Burj Dubai, the

tallest freestanding structure in the world.

This will stand at well over 700 metres once

completed in 2009. Housing office space,

luxury accommodation, restaurants, shop-

ping and one of the first Giorgio Armani ho-

tels, it is a clear symbol of Dubai’s new

found confidence.

Burj Dubai is a successful result of interna-

tional teamwork, where over 5000 profes-

sionals from around the world worked

together. Our projects push the conventional

architectural and engineering parameters, but

the bottom line of our development philoso-

phy is to have world-class residences and

commercial space that enhances the lifestyles

of our customers.

Emaar’s portfolio features landmark architec-

ture developments. Projects such as Burj Dubai

are also a proclamation to the world about the

capabilities of Dubai and the global climate of

growth the city provides.

The performance of the property market will

be in direct correlation to demand. Dubai has

several ambitious growth plans that consoli-

date its position as a global investment hub,

and although there are several projects in the

pipeline, a stronger demand for residential

and commercial space is anticipated.

We are also widening our focus. Replicating the

successful business model in Dubai, Emaar is

extending its expertise in creating master-

planned communities to international markets.

The company’s diversification initiatives have

been evolved from its integrated approach to

customer service and property development.

THE FIVE-MINUTE EXECUTIVE

22Eastern promise Across the Middle East, construction is booming, and nowhere is this moreevident than in Dubai. Issam Galadari, Emaar Properties’ Managing Director,explains the region’s ongoing transformation.


Wiwa.indd 23Wiwa.indd 23 1/9/08 15:26:301/9/08 15:26:30


FROM THE VAULTQ4 2007

Archie Robertson, Chief Executive, UK Highways Agency 24Back in issue five of EU Infrastructure, Archie Robertsondiscussed how an expanding economy has placed ever-greater demands on the transportation infrastructure andhow safeguarding the reliability of the network has becomeincreasingly challenging.

To read more, go to the past issues section of www.euinfrastruc-ture.com and click on ‘Traffic warden’ within issue five.

EU Infrastructure: issue five

TOP 10 BEST AIRPORT 2008 AWARDS

Hong Kong International Airport has

been named the World’s Best

Airport for 2008, in the worldwide

passenger survey results released

by Skytrax. Representing a notable achieve-

ment, this is the seventh time in 10 years that

the accolade has been won by Hong Kong

International Airport.

Of the European airports, Munich is the

only one to crack the top five and disturb the

Asian monopoly on the top spots, placing

fifth. Copenhagen, Zurich and Helsinki all fea-

ture in the list, taking the seventh, eighth and

ninth positions. No US airports featured in

the top 10.

“We congratulate Hong Kong for their re-

peated success in winning the World’s Best

Airport title,” said Skytrax CEO, Edward

Plaisted. “In recent years, the whole air travel

experience has become much more focused on

the time customers spend in the airport envi-

ronment, and Hong Kong has established itself

as a clear passenger favourite in this respect.

“The World Airport Survey evaluates a

broad spectrum of product and service touch-

points across the airport experience, covering

a wide spectrum of passenger types. Hong

1

43

65

87

109

2 Kong was particularly notable for gaining high-

est satisfaction ratings in such a diverse mar-

ket. Like any other business, an airport is

striving to deliver world-class standards that

will make a customer want to use it again, and

achieving this level of loyalty requires the high-

est levels of quality consistency – something

where Hong Kong was singled out again and

again during the survey.”

Hong Kong

Singapore Changi

Seoul Incheon

Kuala Lumpur KLIA

Munich

Kansai

Copenhagen

Zurich

Helsinki

Cape Town



As a part of its systematic and aggressive growth plans, Rolta,

a leading global provider and developer of IT-based services in GIS,

EDS, EICT, ERP and business intelligence, has adopted a clear acqui-

sition strategy to develop and expand its extensive capabilities in ser-

vice delivery, technical skills and products. In February of this year,

Rolta acquired the US-based Oracle consultancy, TUSC – one of the

key Oracle Certified Advantage Partners in both the Database and

Applications fields. In addition to these core skills, Rolta has also

acquired a leading Hyperion practice (WhittmanHart Consulting,

a division of WhittmanHart Inc) and is consolidating its skills in this leading

edge financial and business intelligence application. In Europe, Rolta is now

creating a parallel consulting organisation focusing on the most experienced

and capable consultants to tackle and resolve the requirements of the Oracle

Group user base.

With the convergence of the above skills, Rolta is now in the position to bring to the

market some ground-breaking technical solutions for information access and presen-

tation and has three exciting products.

By innovatively blending the capabilities of OnPoint, Periscope and other busi-

ness intelligence tools, Rolta has launched Geospatial Fusion, that enables instanta-

neous fusion of various disparate geospatial and non-spatial databases and software

applications for generating real-time reports and immediate decision-making.

Up from

installed during the previous year

2826MW

In 1985, the annual solar installation demand

was just

1744MW

21MW

In 2007, worldwide photovoltaic installation

increased by

GROWING FASTINSTANT SOAAn integration and rapid deploymentsoftware product to allow enterprises torealise the power of service-oriented-architecture.

PERISCOPEA database virtualisation tool thatenables businesses to bring togethermultiple disparate databases and createa single view of the information on whichto base queries and reports.

ONPOINTA tool that revolutionises thevisualisation of data through geospatialreferencing, providing the platform tointegrate database content into industryand global mapping products, creatingmeaningful presentation of consolidatedinformation sources.

23

1

DEPLOYING PUBLIC SAFETY NETWORKS

Airwave has now deployed the

world’s most advanced public

safety network. This is no mean

feat and was only achieved with

a great deal of hard work. What is perhaps

most impressive is that this huge project

was delivered both on time and on budget

– two very rare achievements these days. It

is not an overstatement to say that this was

one of the most complex

and pressurised rollouts in

telecommunications histo-

ry. Airwave was sailing in

unchartered waters and in-

novating every step of the

way. These experiences

have provided the compa-

ny with a wealth of knowl-

edge, which can be used to the benefit of

other countries planning to deploy similar

networks. The pioneering has been done,

and in its place is a clear map of how to

build and manage a similar infrastructure to

the Airwave network.

Each stage of the process brings its

own set of challenges. Communications

networks vary greatly when being rolled out.

Factors such as geography, regulation, plan-

ning law and spectrum allocation can all play

a role in informing the design of a

network. This complexity can be costly if

not managed effectively. Lessons from pre-

vious rollouts need to be learned in order

to minimise the potential pitfalls of

deployment and it is here that the experi-

ences of Airwave can prove

to be invaluable.

Airwave has deployed

the world’s largest and most

complex public safety net-

work and can use this knowl-

edge to help others wishing

to deploy similar systems.

This leads to a quicker provi-

sioning timeframe and brings about cost

savings. This experience can also be used to

give customers the peace of mind that

comes with knowing the deployment will be

problem-free. When it comes to public safe-

ty networks, mistakes really cannot be made

and the ability to learn from industry best

practice is instrumental in ensuring this is so.

We have deployed the world’s

most advanced public

safetynetwork

Source: www.solarbuzz.com

SOLAR ENERGY DEMAND



CHANGE IN CLIMATE STANCEAt the recent G8 summit in Japan, leaders agreed on the need tocut carbon emissions by at least 50 percent by 2050 and for eachnation to set its own target for a nearer term. The statement is astep forward from last year’s call to ‘consider seriously’ such long-term cuts, but environmentalists denounced the deal as toothless.Either way, expect climate change to be a key economic driver inthe years ahead.

EUI IMPACT RATING: ��

INFRASTRUCTURE FINANCING INITIATIVEThree Middle Eastern financial institutions propose to put upUS$6 billion in authorised capital to set up a new investmentbank to focus on the financing of infrastructure investmentsin the Middle East, North Africa and South Asia region. Thebanks plan US$1.5 billion in paid up capital, allowing pack-ages to finance transport, power generation, water, energy,education and social infrastructure projects. A glimmer ofhope to keep the infrastructure industry moving.


EMPLOYMENT LOOKING BLEAKThe US economy has lost 463,000 jobs so far this year,with jobs shed consistently for every month in 2008.California’s unemployment rate is at a 12-year high of 7.3percent after losing 54,000 jobs. The biggest losses havebeen in construction, manufacturing and financial services.Expect the troubled job picture to continue into next year.


COMPANY INDEX Q3 2008

26

AROUND THE WORLD IN

Our guide to the last quarter’s global events – andtheir impact on your business.

80DAYS

Companies in this issue are indexed to the first page of thearticle in which each is mentioned.

EUROPEAN CONSTRUCTION COOLSExpansion in Europe’s construction sector is cooling aftermild weather increased building in the first quarter. TheEuro-region economy contracted in the second quarterfor the first time in almost a decade, led by declines inGermany, the region’s largest economy, and Spain,where a 14-year real-estate boom has collapsed. Expectfurther slow down as we head into 2009.


Acquris Airborne Hydrography ABAirbus Airwave Solutions American Superconductor Aquasys Association of Chief Police Officerson Information Management Bellona BentleyBOMAG BP Bitumen Cactus Automation Case Construction Central Networks China Classification Society Combibox Systems Corus Bi-Steel Datamonitor Deerns DNV Wind Energy

10011982

25, 634

70

11011610552357731

105126

21, 9210480

13, 87126

Ekahau Emerging Energy Research (EER) Endesa Enel Etherstack European Chemicals Agency (ECHA) Eurostar Filter Clear Ltd Fogtec Frankfurt Airport Fraport AG Freshfields Bruckhaus Deringer Frost & Sulivan GE Hafslund Hoffmann Mineral Honeywell HYUNDAIHyperion ICX Technologies Intergraph

8112413213211413456

14170, IBC

848446

82, 102105116

86

4525

103105

International Air Transport Association(IATA) Iskra SistemiITS KEMA Rail Transport Certification Kenersys Europe GmbH KLM Security Services KPMG LG Iris Lufthansa Medecins Sans Frontiers Metropolitan Police Service Mott MacDonald Moxa Europe GmbH MT Højgaard NACO National Police Improvement Agency Nynas Optosecurity Oracle Port of Rotterdam

8820, 49

10566

IFC, 1269476

13782

1161103658

12291

11039

10, 9925, 105

106

Rolta Romax Technology RSE SemMaterialsSharp SITA Skanska StarrPort Corp Swedish Road Administration TelindusTerex Comedil Transport for London TUSC Valerenga Fotball Vinci VNE Weidmüller WhittmanHart Consulting WhittmanHart Inc. WIWA WSP

25, 105, 10812611615

13294

1128978

139506425

116281974252523

2, 68, 144, OBC



• French utility group GDF Suezis to buy US electricity provider FirstLight

Power Enterprises, in a deal thought to be worth €1.3 billion

• Richard Branson is considering a bid for BAA’s Gatwick Airport. The

proposals are at an early stage as the airport is not yet formally for

sales but the deal could be worth more than UK£2 billion

• Greek real estate company Babis Vovos International Construction

SA has said that it has received the building permit to allow it to com-

plete construction work for the shopping mall being developed in

down town Athens at Votanikos

NEWSBITES

Ticket buying facilities

to 71 percent

Overall station environment

to 63 percent

The amount of roomavailable for passengers

to sit/stand

to 62 percent

UP3%

Connections to othertrain services

to 70 percent

UP3%

UP2%

The latest National Passenger

Survey (Spring 2008) finds 80 per-

cent of passengers in the UK are

satisfied with their

rail journey – up from 79 per-

cent in the same survey last

year, reflecting train opera-

tors’ success in improving

train services.

Michael Roberts, Chief

Executive of the Associa-

tion of Train Operating

Companies (ATOC), com-

mented: “With rail travel up

by over 60 million journeys in the past

year to one of its highest levels ever

achieved, more and more people are

satisfied with their rail travel experience.

A major investment programme to bene-

fit passengers is underway and this should

continue to drive up passen-

ger satisfaction in a number

of important categories.

“Across the network,

there are more than 20,000

CCTV cameras protecting

passengers, and train oper-

ators annually invest well

over UK£100 million to

fund the British Transport

Police. Over the past few

years, more than UK£5 billion has been

spent on 5500 new and refurbished

train carriages.”

80% SATISFIED WITH RAIL JOURNEYS

UP4%has been spent overthe past few years on5500 new &and refur-

bished carriages

UK£5billion

Personal security

to 61 percent

UP4%

According to the NationalPassenger Survey, the followingsignificant improvements wereachieved at stations:


The VINCI


COVER STORY

At the start of the year, VINCI’s order book stood at animpressive €21.5 billion – enough to make it the world’s largest

concession and construction firm. In this exclusive interview,chairman and chief executive of VINCI PLC, John Stanion,explains the key principles behind the company’s success.

By Ben Thompson

A construction worker looks out over the Stade de France, one ofVINCI’s most high-profile projects. VINCI companies and theirpartners completed the €285 million project in 31 months, usinginnovative civil engineering and construction techniques andmeeting a wide variety of architectural challenges

VINCI:24sept 8/9/08 16:34 Page 28

I’ve just arrived at the VINCI PLC offices in Watford after what feels like

the longest train journey ever. I’ve only travelled about 100 miles

from the EU Infrastructure headquarters in Bristol, but it’s still in-

volved a gruelling 6am start, a journey time of three-hours and four

separate train rides – including one across London during rush hour

that didn’t involve a seat – all for the bargain price of UK£152. I was-

n’t even travelling first-class. For John Stanion, my ordeal speaks volumes

as to the current state of Britain’s public transport infrastructure. “The UK

rail system has to be improved,” he nods, acknowledging my rather fraz-

zled appearance.

And Stanion is not one to miss an opportunity. The CEO of VINCI PLC,

part of the construction arm of the world’s largest company in concessions

and construction, has a refreshingly no-nonsense approach that is com-

pletely appropriate given that the projects his company are involved in are

fundamental to the way modern society operates. Transport, energy, waste

disposal, sanitation: providing such infrastructural building blocks is sec-

ond nature to a firm such as VINCI, and something the company’s business-

like chief executive is passionate about developing.

“Major construction projects are exciting,” he admits. “When you see

some of the projects that we undertake – the Charilaos Trikoupis bridge

(Rion-Antirion) in Greece or the Vasco de Gama bridge in Lisbon, for exam-

ple – there is a certain thrill in doing them. We’re involved in roads and tolls

and bridges and stadiums. We’re building and improving the motorway net-

work in Greece between Athens and Corinth. We’re doing the Coentunnel

in Amsterdam, the Athens Metro and the European Investment Bank build-

ing in Luxembourg, which was inaugurated at the beginning of June. So

we’ve got active and exciting projects all over Europe.”

It’s an impressive order backlog that has helped propel VINCI to the top

of the Fortune rankings in the construction sector, and take it to 168th in

the Global 500 list of the world’s biggest corporations. Clearly, business is

booming. “Our order book is the highest it’s ever been,” acknowledges

Stanion. Revenue results for 2007 show growth of 16.9 percent to €30.4 bil-

lion, with a large proportion of that growth coming outside the home mar-

ket of France; international business increased by 21.6 percent. “The reason

for that I suppose is that we are a business of choice for customers. They’ll

come to us because we are a benchmark for major project capabilities

around the world.”

One of those projects is the design and construction of a causeway be-

tween Qatar and Bahrain that consists of 44km of road over water, the

longest stretch of bridge in the world. Elsewhere in the Middle East, VINCI

is involved in great projetcts such as the Naga Hammadi dam in Egypt, and

the compaction works on the second palm tree in Dubai, baptised Jebel Ali.

And while the company’s involvement in the construction of the massive

Soyuz launcher site in French Guiana for the European Space Agency pro-

vides further evidence of the international nature of the France-based firm,

Stanion insists that the market closer to home is just as interesting.

“We have major subsidiaries in most Eastern European countries and

we’re involved in civil engineering infrastructures, building and concessions

in those countries,” he says, “Motorways and highways are a major part of

our focus in this region, railways are another, and the other area is power


code€30.4 billionTotal Vinci Group revenuesfor 2007 158,000

Total employees worldwide

€21.5 billionCurrent value of order book

VINCI:24sept 8/9/08 16:33 Page 29

production and power distribution. CEE is a big market for

VINCI, and growing very rapidly.”

He points to Spain, Greece and Ireland as examples of

countries that have made huge strides in terms of their in-

frastructure development in recent years, and expects the

new EU members further east to undergo a similar transfor-

mation over the next few decades. “There’s a significant

amount of development that’s going to happen in this re-

gion,” he continues. “If you think back 30 years ago, Spain

was a backward country in terms of its infrastructure. Only

15 years ago Ireland had no motorways. But look at Ireland

or Spain today and they have world-leading infrastructures,

and because of that their economies have also done ex-

ceedingly well. Spain is now the European leader in wind

power. It’s got one of the best motorways in Europe. It’s got

high-speed rail. And there’s no reason whatsoever that coun-

tries in the CEE region cannot make similar advances.

Countries like the Czech Republic, Poland, Slovakia and

Hungary are more established members now and there’s lots

of investment going in, but Romania, Bulgaria and Slovenia

are also expected to see enormous growth. And the devel-

opment of their infrastructure will play a big part in this.”

Key challengesBut while prospects for individual markets look good,

Stanion concedes that the industry as a whole faces a number

of key challenges over the next few years. The first is the ques-

tion of attracting and managing top talent. “The construction

industry is primarily about human resources and it’s the most

important component of the business,” he says. “VINCI con-

sists of 158,000 employees and in 2008 we recruited 27,000

new ones, so we’re one of the largest employers in the world

– but just imagine the HR challenges that recruiting 27,000

new employees each year poses from a management per-

spective.”

According to Stanion, developing the people element

of the business is key to VINCI’s financial success. “At the

end of 2007, our employee savings scheme held 8.2 per-

cent of VINCI’s capital, so the employees are actually the


John Stanion provides his thoughts on currentindustry hot topics.

ON THE CREDIT CRUNCH: “I don’t think it is going to have an effect on the

funding of infrastructure. However, I do think that a world economic downturn will

affect everybody. It doesn’t matter what industry you are in. But we’re not that

susceptible to market sentiments. Our projects are long-term so we’re pretty robust.

VINCI has hardly any involvement in the property sector in the US, UK or Spain; in

France, which is VINCI’s primary market, VINCI is only number seven in this sector.”

ON RESPONSIBLE DEVELOPMENT: “There are economic benefits, and

there are human benefits. CSR is not just about the environment. It’s about the

whole social agenda – health and safety, human resources and training. It’s about

the environment. It’s about energy use, carbon footprints. There’s a whole series

of things.”

ON CLIMATE CHANGE: “Industrialisation is about power production and

energy, and the key to solving the carbon dioxide problem is the way that we use our

energy. That’s the thing that we have to change. We are going in the right direction –

the question is whether we’re going in the right direction quickly enough.”

ON TALENT RECRUITMENT: “As an industry we have not attracted enough

of the best graduate talent to construction, and there’s a general shortage of young

people coming forward in technical disciplines such as civil engineering. It’s

important to raise the profile of the industry, because it’s actually a really exciting

industry to work in.”

IN HIS OWN WORDS

“The Middle East is reallyexciting because there’s a hugeamount of money being spent,and there are almost no limitsto what those countries areprepared to do from aconstruction perspective”

VINCI:24sept 8/9/08 16:33 Page 30

CaseConstruction.indd 31CaseConstruction.indd 31 1/9/08 15:19:391/9/08 15:19:39

One of the ways the industry, and VINCI in particular, is addressing this

concern is through so-called early contractor involvement. Rather than

going through the traditional process of designing everything upfront with

a designer, getting a series of contractors to put a price on the work, award-

ing the contract, having someone build it and then somebody else operate

and maintain the finished build, early contractor involvement uses a sys-

tem whereby a number of preferred contractors are ‘pre-qualified’ for par-

ticipation. “This pre-qualification process allows project managers to

identify and choose a preferred contractor who then be-

comes involved in the concept development right at the

beginning, long before anything gets designed – the idea

being that as a team you design it more efficiently so you

can build it more efficiently,” explains Stanion.

The final major industry challenge he identifies is

the sheer size of the projects currently being undertak-

en. The Qatar-Bahrain causeway project, for instance, is

worth over €2 billion – a sizeable piece of business. “The Middle East is re-

ally exciting because there’s a huge amount of money being spent, and

there are almost no limits to what those countries are prepared to do from

a construction perspective,” he says. “Even in the UK, you see the M25 mo-

torway-widening project is now being managed as a single contract, where

if you go back to the 1970s when that motorway was first built there were

largest shareholder in the group,” he explains. “This links them direct-

ly with the company’s success, makes them feel part of it, and gives

them a sense of ownership.” And to help nurture this close relationship

between employer and employee, VINCI puts significant emphasis on

personal development and training. “In 2007, we notched up no fewer

than 2.5 million training hours, which was an increase of 28 percent on

2005. So I think it’s right to say the primary challenge for us is human

resources.”

The second major challenge for the industry is the increasing intricacy

of projects. “They have become extremely complex,” he says. “Not only do

you have to build them, you have to design them, you have to work out the

impact on the environment, you have to finance them and you have to do

it all within a framework that’s agreed upon upfront. So they’re very, very

complex.”

EIB headquarters, LuxembourgEnvironmental and energy concerns were key to the

design of the €135 million European Investment Bank

headquarters in Luxembourg, inaugurated in June 2008.

The glass shell enveloping the whole building makes

maximum use of natural light; winter gardens and atria

provide thermal insulation and natural ventilation, keeping

energy consumption and emissions to a minimum; and

the building complies with the most stringent

environmental standards. The building is 170 metres long,

50 metres wide and 22 metres high, and has a total floor

space of 72,500m2.

“We have to re-engineer our wholeinfrastructure for the future and get away fromour dependence on fossil fuels. I think it’sreally fundamental”


VINCI:24sept 8/9/08 16:34 Page 32

countless contracts involved. And so it’s not just the financial size but the

actual scope of the construction work itself that is growing. The projects are

getting bigger, we’re getting involved earlier and we’re taking greater re-

sponsibility for the financial side of things as well.”

In terms of advantages, Stanion sees this offering a number of key

business benefits from a project management perspective. “I think it

brings the opportunity to better manage risk,” he says. “The greatest

issue is when you have the whole project divided up between different

parties and something goes wrong in one section and it has a knock-on

effect on everything else. That’s the way these projects used to be run,

with no real sense of control, whereas now we

can hold all the different elements in one

hand – coming up with a concept, designing

it, working out how to construct it, industrial-

ising the process to improve the productivity,

building in lifecycle costs to the design

process, and working out what the best ways

are to ensure that the costs of the use are

minimised.

“I think having that managed as a single

contract brings greater certainty to the

process,” he continues. “It gives you an op-

portunity to manage risk better, and I think

customers at large institutions realise that. It

does bring complexity, and it does mean you

have to have a very high level of skill, but at

least you are able to trust to your own com-

petencies.”

Market opportunitiesAnd, as we all know, big challenges offer

great opportunities for those companies with

the right competencies. In this respect,

Stanion sees potential for future growth in

four key markets: energy, waste manage-

ment, new motorway construction and, of

course, improvements to the rail network. He thinks the sector holds im-

mense promise.

“We’re in the beginnings of a new golden age for the railways,” he

asserts. “As a means for transportation – mass transportation over short

distances, national transportation over longer distances and even con-

tinent-wide transportation – rail makes a lot more sense than air. It’s a

much more comfortable, pleasant experience to get on a fast train from

London to Paris, and it’s actually quicker by the time you’ve driven your

car to the airport, parked it, gone through all the security precautions,

and got off at the other end.”

But while he acknowledges the potential for further expansion of

the high-speed network across the continent, he maintains that the pri-

ority – for the UK, at least – must be to improve the existing network and

transport the people who currently use it more comfortably, more effi-

ciently and less expensively than we do at present. “There’s a huge

amount of work that’s needed to improve what we’ve got now,” he says.

“We need to improve signalling. That’s happening slowly but surely. We

need to improve stations. We need to make platforms longer so they can

accommodate longer trains. We need to make stations and travel safer

in terms of the use of stations at night. And a massive upgrade of the un-

derground network is needed. It’s going on but there’s still a long way to

go. So there’s a lot of investment required on the basic mainline network

and the basic underground network here in the UK and also in other

parts of the continent such as Central and Eastern Europe, and there’s

significant investment needed in Europe to complete the high-speed net-

works and extend them further east. So I think rail is going to be a key

market for the construction industry.”

The second key area will be meeting the increased demand for en-

ergy. “It’s a very interesting subject. How are we going to replace fossil

fuels, and how are we going to do that in a way that doesn’t add to the

global pollution problem? I think greener generation such as wind power

can play a role, but nuclear power will also be important. At the end of

the day, you need to produce high levels of base power generation and

the best way of doing that, in my opinion, is nuclear.”

He concedes that nuclear is an energy source that has proved deeply

unfashionable in the past, but points to France (where nuclear accounts for

over 40 percent of the country’s primary energy supply) as an example of

how it can be used successfully. “The French made a conscious choice to

go nuclear in the 1970s and how many French people have actually been

harmed by nuclear pollution? Very few that I’m aware of, if any.” According

to Stanion, VINCI’s interest in the nuclear industry is twofold. “Firstly, we’re

heavily involved in decommissioning and cleaning up the mistakes of the

past. There’s a big task there. And that’s quite separate from the issue of

new nuclear generation, which is much cleaner and more sophisticated


Greek motorway concessionIn Greece, VINCI is leading a consortium to finance, design and build/upgrade the

Athens-Tsakona motorway, the country’s biggest motorway concession project.

The project calls for the construction and modernisation of 365km of toll motorway

between Athens and Tsakona in the southwest of the Peloponnese, via Corinth and

Patras. The project also involves operating the motorway for 30 years, and means

VINCI now operates 600km of motorway in Greece.

VINCI:24sept 8/9/08 16:34 Page 33

than it was when people were pioneering it. We’re involved in both and will

be very much involved in the construction of new nuclear power stations

should they come – and we think they should.”

As with any such policy decision, the final determination will come

down to two key drivers. “Economics is one; until you can say what the

real cost of burning coal is, it’s tough to make an informed decision. But

if you actually cost a carbon emission and create a level playing field, the

economics become a little clearer. The other driver is politics, and it’s

about security. Do we really want other countries to have the gas tap on

their side of the wall?”

The third area of opportunity is that of waste management. “The

issue of waste will be critical,” Stanion says. “We can no longer tip all

our waste into holes in the ground. That’s no longer possible for a host

of reasons, from lack of space to the need to be more environmentally

responsible. To reduce the amount of waste we need to recycle much

more, and that which we can’t recycle we’ve got to dispose of in an en-

vironmentally friendly way, so every city and every town in Europe needs

better waste treatment facilities. The required investment is huge, but it

will come – it’s coming now. We’re getting to see the first projects, and I

predict that’s going to be a really rewarding market.”

Finally, Stanion pinpoints motorway construction as a key market

for VINCI, although stops short of recommending more roads for devel-

oped countries such as the UK. “Motorways are important in countries

that don’t have them,” he explains. “I question whether we need more

motorways in a country like Britain. I think we just need to use them

more efficiently; the issue in the UK is making the motorways work bet-


Chernobyl containment shelterThe €432 million contract comprises the design and

construction of a confinement shelter in the form of an

arch of exceptional dimensions, designed to permit the

future dismantling of the old sarcophagus and the

wreckage of the reactor that exploded on 26 April 1986.

The arch will consist of an 18,000-tonne metal framework

spanning the existing sarcophagus, and will be 105

metres high, 150 metres long, with a 257-metre span.

Work started at the end of 2007 and will take 53 months.

Dutch tunnel projectEarlier this year, a VINCI-led consortium signed the

concession contract for the Coentunnel in Amsterdam.

The project, worth over €500 million, requires the

financing, design and construction of a submerged, eight-

lane road tunnel, as well as renovating the existing tunnel

there and maintaining both tunnels for a period of 30

years. The tunnel will connect the centre of Amsterdam

with the northern part of the Netherlands, and should take

five years to complete.

ter, maybe some widening, traffic management and so forth. Really, we

should be concentrating our efforts on making public transport systems

better. I think if you want to make public transport work properly, you

have to have the guts to back it and invest in it. It has to be sustainable.”

And it is here that Stanion’s real passion shines through – his belief

in the importance of corporate social responsibility. Stanion himself

oversaw the production of the company’s first CSR report earlier this

year, and the value of sustainable development that encompasses envi-

ronmental and social considerations as well as economic and engineer-

ing ones remains a subject close to his heart. “This is a huge area for

us,” he says. “VINCI already has a policy of sustainability that measures

all sorts of areas of activity. We’re measuring our waste production, we’re

measuring our power consumption, our fuel consumption, and we’re set-

ting targets to reduce in every area.”

For Stanion, such an approach is critical given the societal impact of

the projects his firm undertakes. “I think this whole question of

European infrastructure in the wider sense – not just the construction of

it, but the funding of it, the operation of it, the choices of what we do –

involves big issues that concern everyone, not just the construction in-

dustry,” he concludes. “They impact the man on the street. They’re going

to have a dramatic effect on the way people live in the future, and the

revolution we face today is just as great as the revolution they faced 200

years ago with the invention of the steam engine. Now we have to re-en-

gineer our whole infrastructure for the future and get away from our de-

pendence on fossil fuels. I think it’s really fundamental. I think it’s the

most important issue we face as a race.” �

VINCI:24sept 8/9/08 16:34 Page 34

BP.indd 35BP.indd 35 1/9/08 15:19:101/9/08 15:19:10

Mike Barker rolls his eyes and looks to the heavens. “Patience is

crucial in our line of business,” he sighs with mock exasperation,

waving his hand over yet another set of revised plans. It’s a senti-

ment most project managers would agree with. Revision of designs is typical

on iconic projects, and a case in point is one of Mott MacDonald’s newest (and

most controversial) projects, the proposed Maze Stadium

in Northern Ireland. The build aims to bring together Gaelic

athletics, soccer and rugby in one world-class 21st centu-

ry shared facility and put Northern Ireland on the map for

hosting major international events; as lead consultant,

Mott MacDonald is expected to project manage the build

from start to finish. But as Barker is only too aware, man-

aging projects of such public and political interest can be

a challenging experience.

“To date, we have made good progress but it has

not exactly been straightforward,” he says. Quite apart

from the problems inherent in dealing with three differ-

ent sporting administrations and multiple clients, there have also been is-

sues regarding the proposed site for the stadium: that of Northern Ireland’s

notorious former Maze Prison, where 10 hunger strikers died in 1981 dur-

ing the Troubles. Nonetheless, Barker remains enthused by the project and

the opportunities it offers. “It’s hit some problems at the moment due to

affordability, which is often the case on major public infrastructure pro-

jects,” he admits. “It’s quite a challenge from a design perspective to please

all stakeholders, but it’s one we are excited about.”

Such ambition is typical of a firm that has a long history of pioneering

design and construction, most recently on the groundbreaking Wembley

stadium project in the UK. From its early work in delivering the world’s first

underground railway in London to more recent efforts such as the Channel

Tunnel linking England and France, the spectacular Dubai Marina develop-

ment in the Middle East and Heathrow’s revolutionary

Terminal 5 building, Mott MacDonald has established

a reputation for delivering innovative designs and pro-

ject management excellence around the world. For

Barker, it’s all about teamwork and communicating

good ideas well.

“Modern design teams are really all about col-

laboration, and the edges of the disciplines can get

quite blurred at times,” he says. “This is especially im-

portant in a global economy. What we try and do is

bring a fresh approach into the design and develop-

ment process that isn’t blinkered by what we’ve done

before as industry specialists, by having people from different disciplines

working closely together and sharing ideas and maybe incorporating best

practices or ways of working from other areas of the business. It allows us

to innovate without taking unnecessary risks.”

Indeed, in an industry in which great design is the bedrock for success,

having the freedom to incorporate innovative ideas is critical. But as Barker

is quick to point out, achieving the balance is easier said than done. “Our

environment is becoming increasingly litigious, and that can provide a cap


EU infrastructure meets Mott MacDonald’s MD of Buildings and Structures,Mike Barker, to talk about why managing large projects requires a uniqueblend of vision and experience.

CONSTRUCTION FOCUS

GETTING THE JOB DONE

€1.04 BILLION

Mott MacDonald’sannual revenues

MottMcDonald:24sept 5/9/08 11:15 Page 36

the workplace. I suppose if I were really honest about it, you’d ideally like

to use ideas that have already been successfully trialled in the market,

where somebody else has had a go and made them work, so you’ve got a

precedent. And so really we’re looking at refining existing ideas and mak-

ing them more accurate, and bringing more certainty into what we’re doing.

On the construction side, it’s a case of refining what we’ve got, and the in-

novations are probably going to come when looking at how to improve the

energy efficiency of the build and the build process, that sort of thing.”


Mike Barker

On the €362 million Hague wastewater treatment

plant – the first PPP deal in the Dutch water

management sector – Mott MacDonald is

providing technical advice to the commercial lending

group, including the European Investment Bank (EIB).

This landmark project comprises a 30-year concession

for the design, construction and operation of a new

wastewater treatment plant at Harnaschpolder

(capacity 1.3 million population equivalent) and the

refurbishment and operation of the existing Hague

wastewater treatment plant at Houtrust (capacity 0.4

HAGUE WASTEWATER TREATMENT PLANT PPP

million population equivalent). The combined plants

will meet stringent EU standards for removing nitrogen

and phosphorous before the effluent is discharged to

the North Sea.

Mott MacDonald’s role involved serving as technical

advisor to the lenders throughout the bid and

negotiation phases and then reviewing and monitoring of

the project during the construction and operation

periods. The two plants are scheduled to be fully

operational by November 2008 to meet the European

regulations on wastewater quality.

on innovation as people are less willing to take unknown risks,” he con-

cedes. “Nonetheless, we always try and provide added value, and innova-

tion plays a key role in this. For instance, we have a professional excellence

programme across the group that we use to bring the latest thinking into


As Barker explains, a major part of this innovation process comes from

the organisational culture at Mott MacDonald. “We believe that the best in-

novation happens when it becomes a by-product of your company culture,”

he says. “In Mott MacDonald, we try to make sure that each of our teams are

adopting the same working discipline and values in different locations, and

it’s like that across Europe and everywhere we work. There is a strong cul-

ture of working together across geographical and technical boundaries to

provide best practice solutions to problems, so that people can benefit from

being part of a larger organisation that is able to provide better direction,

better training and a greater understanding of what current needs are and

what cutting-edge thinking is all about. You wouldn’t necessarily get this if

you were sitting by yourself in an office of three people. But by having a com-

munity of best practice across the group, it enables those three people to

feel part of, for example, a 200-strong team who all do the same thing but

are remote from each other. And that 200-strong team has a critical mass

that enables each of those smaller teams to bring current thinking and the

expertise of the whole group into whatever projects they are working on.”

Innovation breeds sustainabilityOne of the things Barker is most excited by is the idea of channelling

innovation to help promote concepts such as sustainability and energy ef-

ficiency. So how is Mott MacDonald building a greener focus into its design

and construction processes and reducing the environmental impact of large

projects? “As much as possible, we try to build sustainability into our designs

from the beginning,” he explains. “It’s much easier to do this from the begin-

ning than it is to try and add sustainable features or greener practices halfway

through the build. You’ve got to have it in right from the beginning, because it

affects the whole aspect of the building and the way it is put together.”

It’s an area that has increasingly moved up the corporate agenda for

everyone involved in the infrastructure sector over the last few years, but

Barker sees it as much more than just a fashionable buzzword. “In a cou-


As one of BAA’s first-tier integrated suppliers, Mott

MacDonald has been design engineer for all the UK£4.3

billion project’s sub-structures and foundations. It also

provided rail assurance and integration services, risk and

safety management, project and programme

management, tunnelling advice and the design of rail,

road, wastewater and passenger transfer tunnels.

Making Terminal 5 accessible is vital to its success,

and Mott MacDonald has been instrumental in bringing

people to this new development. Among the tasks

undertaken is the 1.7km long Piccadilly Line extension,

which connects into the existing Piccadilly Line near the

central terminal area. Similarly, the Heathrow Express

Extension (HexEx) now takes the Heathrow Express rail

link from the existing rail station at the central terminal

area to the new rail station located beneath the new T5

terminal building.

Mott MacDonald has also been the leader of the task

team responsible for development, co-ordination and

design of all substructures, including the multilevel

basements beneath the main terminal, concourse A and B,

over and outside roads and all geotechnical design

associated with the close proximity of underground tunnels.

Other substructures worked on include taxiway bridges for

aircraft over airside roads, concrete underground structures

for the track transit and baggage systems as well as

underground service tunnels and airside roads.

Recently, Mott MacDonald successfully completed

work on the airside road tunnel, a complex job involving

working under one of the world’s busiest airports. The

company was responsible for the design of the tunnel

bores, the approach structures, highway design,

mechanical and electrical definition design and

instrumentation and monitoring of this prestigious

project. Completed on time, under budget and with no

impact on the airport’s day-to-day operations, the dual-

purpose tunnel will provide road access from Terminal 1,

2 and 3 to Terminal 5. It will also serve the remote aircraft

stands on the western edge of the airport from the

central terminal area.

HEATHROW TERMINAL 5

“Modern design teams are reallyall about collaboration, and theedges of the disciplines can getquite blurred at times”


Nynas.indd 39Nynas.indd 39 1/9/08 15:24:091/9/08 15:24:09

ple of years’ time I think that we’ll start to see less of a focus on sustainabili-

ty and environmental issues – not because they’ll become any less important,

but because they’ll become so ingrained into everything we do,” he says.

“Sustainability is going to become second nature, because it has to. It’s going

to become more and more central to every single thing we do, and is going to

be totally embedded in the very fabric of our culture as an industry.”

And with the construction industry being one of the largest consumers

of natural resources in Europe, an essential starting point is to re-examine

the basic materials that are wasted each year. Barker reels off a few re-

vealing – and shocking – statistics. “The construction industry is the UK’s

largest consumer of natural resources,” he says. “Around 400 million tons

of material gets delivered to site every year, and 60 million tons of that go

straight to the tip. It’s absolutely staggering – brand-new materials just get

junked because of poor ordering, poor storage or over-ordering.”

In addition, the UK construction industry accounted for approximately

8.5 percent of GDP, but churned out a third of the nation’s total waste. So

what can the industry do to reduce its consumption of energy, water and

raw materials, and what opportunities are there for

better waste management in the construction sec-

tor? According to Barker, the UK has already made a

start in addressing the problem, but other countries

need to follow suit. “In the UK now, every project

that’s over UK£300,000 capital value has got to have

a waste plan, and that waste plan has got to deter-

mine how misuse is going to be dealt with, and how

waste is going to be minimised,” he says. “It’s called

a site waste management plan, and it’s an attempt

to try and bring this appalling waste of materials

under control. It really is quite amazing how badly

the construction industry has been faring in relation

to waste reduction.”

The next step is to try and implement similar initiatives across Europe.

“I imagine the EU will start to implement something quite shortly – it’s going

to be a bit more difficult because of the diversity of the countries in Europe,

but I believe it’s necessary. And I think everybody’s in a similar situation – some

are more advanced than we are, of course, but I think there’s a desire to ad-

dress this issue across the EU, particularly given the prospect of a potential

recession.”

Defeating the downturnThe possibility of tough economic times is, of course, the elephant in

the room as far as the industry is concerned. So has Barker witnessed any

evidence of this so far, and does he anticipate any potential downturn to

have much impact on the construction sector in general? “It has already

started to impact on us in certain instances,” he admits. “We were doing a

lot of work on larger housing schemes, and that’s all dried up now. All the

contractors who are dealing with housing developments are finding it real-

ly hard going.”

So rough times ahead, then? Not necessarily. “This is where our strat-

egy is paying off, because we’re very diverse,” explains Barker. “Mott

MacDonald has around 13,500 people worldwide, and we deliberately

made the decision to limit our work to technical, professional and strategic

services, rather than going into the traditional domain of contractors.

Working across most market sectors in this capacity is the strength behind

our diversification strategy; as we are active in many different industry sec-

tors, not all of them are going to trough at the same time. Some will be

peaking. For example, energy is a very strong market at the moment for us,

because there’s such demand for new energy provision.”

From that point of view, he thinks his firm will be able to ride out the

storm better than most. “I do know that some of our competitors are hurt-

ing quite badly at the moment, particularly those who haven’t got that

breadth of exposure into different markets that we have. I suppose it real-

ly depends on how deep and for how long the recession bites – and that’s

anyone’s guess. I was talking to a friend of mine who’s a fund manager, and

he was saying how even within the financial sector there are numerous dif-

ferent opinions about what’s going to happen.”

The good news – for those farsighted enough to get involved in those

markets – is that China and India are still displaying a huge appetite for raw

materials. “If you’re exporting to that part of the world, then there’s a good

chance that you haven’t even started to feel the effects of the recession

yet,” continues Barker. “In Australia, for example,

they’re still booming along like you wouldn’t be-

lieve in relation to exporting raw materials and

minerals into China. For them it’s like, recession?

What recession? Similarly, we’re working on a

huge project down in South Africa at the moment

providing railway and port access for the raw ma-

terials export business – because there’s also a

huge demand for natural resources out of South

Africa, to meet the ever-increasing appetite for raw

materials in the Far East.”

And on the domestic front, he points to the huge

amount of homes that still need to be built to meet ris-

ing demand as evidence that all is not doom and

gloom for the sector. “There’s still a demand for housing, certainly in this coun-

try,” he says. “I think people would still like to have their own house and gar-

den and things like that, and there’s a huge deficit there. So there’s plenty for

the sector to feel optimistic about.”

Market opportunitiesAs there is for Mott MacDonald, too. The company recently completed

its role on an award-winning project as design engineer for a new civil jus-

tice centre in Manchester, and is hoping to use the lessons learned from

that as a means of benchmarking future projects. “The whole of the design

is actually based around its sustainability performance,” explains Barker.

The UK£113 million centre, which provides 47 courtrooms in a sustainable

16-storey building designed by architect Denton Corker Marshall, features

an 11-storey atrium and a spectacular 60m by 60m glass facade along the

western edge. Meeting the requirement for natural ventilation means that the

structure had to be designed to accommodate a complex web of ductwork to

allow air taken in at the sides of the atrium – through wind scoops facing the

direction of the prevailing wind – to circulate through the building. The natur-

al ventilation system is designed to maximise free-cooling potential and com-

fort in mid-season. An intelligent building management system brings in a

back-up forced ventilation system if the wind speed is too low to achieve this.

Other features include an ‘environmental veil’ on the east façade to control


“Sustainability is goingto become more andmore central to everysingle thing we do, andis going to be totallyembedded in the veryfabric of our culture asan industry”


solar gain but also maximise natural daylight, and groundwater cooling, which

alone reduces cooling load energy consumption by around 15-20 percent.

Barker and his team already aim to better these performance figures on a sim-

ilar courts building they are working on in Birmingham.

And as governments increasingly call on the private sector to take part

in infrastructure development, Mott MacDonald is also sharing its expertise

in public private partnerships (PPPs) in all areas, from transport to health

throughout Europe. In the Slovak Republic the firm examined the feasibility of

using PPP to fund 90km of D1 motorway in the north of the country, while in

Poland the European Bank for Reconstruction and Development asked the

company to study the introduction of municipal road PPPs in Lodz, Krakow and

Poznan. At the same time, the Mott MacDonald team is helping deliver na-

tionally strategic mainline rail upgrades in various countries including Hungary,

Poland, the Netherlands and the UK.

Clearly, the European market is an important area of future growth.

“We operate a global company, and one challenge is trying to make sure

that we uphold our high standards and bring a sense of commonality across

the whole group at all our diverse geographic locations,” says Barker. And

in terms of opportunity, he has no doubt as to where the main potential lies.

“Eastern Europe is going to bring the most significant changes into the re-

gion. I don’t think we’ve really tapped or fully understand the market yet.

They’ve got lots of natural resources, therefore they’ve got lots of potential

for wealth creation and it’s understandable that people in Eastern Europe

will want the same sort of standard of living as others have elsewhere

around the world.”

He sees similar potential in Russia. “It’s such a huge country, and

there’s loads of natural resources there. I think that’s actually going to have

a big impact on the whole of the European construction industry. It’s going

to be focused more and more on the development of those countries. We’ve

already got projects and offices there, and we’re pushing forward on that

basis. And there’s a huge amount of development that needs to happen

there. The construction industry is already gearing itself up. The natural re-

sources, minerals and oil-related development will fuel huge opportunities

for us all. I’ve seen it. I’m in and out of Russia all the time. I’ve seen the op-

portunities going on there. Kazakhstan’s the same; there are amazing op-

portunities there.” �


Mott MacDonald’s activities across Europe cover every sector and

every professional technical discipline of expertise. Just the briefest

snapshot includes:

• Education, urban regeneration, building and transportation

developments in the UK, Ireland, Portugal, Denmark and Greece

• Health advances and power stations in Spain, Poland, Turkey and Italy

• Water and wastewater projects in the Netherlands, Serbia, Bulgaria,

Romania, Russia and the Czech Republic

• Environmental and water assignments in Tajikistan, Kazakhstan and

Uzbekistan

• Transport projects in Bulgaria, Czech Republic, Hungary, Poland,

Slovakia and Russia

EUROPEAN FOCUS

Manchester’s UK£113 million Civil Justice Centre hasbecome a benchmark for sustainable development


To the end of 2012, over €2.9 billion will be allocated in Poland to

bring the designs of world-famous architects to life. A number

of factors have influenced the present situation. A key factor is

the availability and rising attractiveness of the Polish market to

foreign investors who, unlike Polish companies, are familiar with

investing in high-class architecture.

Until recently, Poland was home to only a few designs developed in the

studios of world-class architects, such as the Metropolitan office building

in Pilsudski Square in Warsaw, designed by Norman Foster, and the Centre

of Japanese Art and Technology by Arata Isozaki in Krakow. In recent times,

however, the situation has changed considerably. In Warsaw and Poznan,

new apartment buildings by Daniel Libeskind are being erected; a high-rise

building by Zaha Hadid will be built in the immediate vicinity of the capital’s

Marriott Hotel; Frank O. Gehry is to design Lodz’s congress centre; and

Tadao Ando, commissioned by Grazyna Kulczyk, is working on a concept

for an underground gallery of contemporary art.

Not only does the name of a well-known architect guarantee unconven-

tional solutions, high quality and prestige, it is also an ingenious marketing

tactic. Evidence of the efficiency of such an approach is the construction of

the Guggenheim Museum affiliate in Bilbao by Frank O. Gehry, which has con-

tributed to the development of the whole city (the so-called ‘Bilbao effect’).

The Frankfurt headquarters of Commerzbank, designed by Norman Foster,

can serve as another example. Since Commerzbank Tower was the tallest

high-rise building in Europe for a long time, its name has appeared in the

media, publications and discussions far more frequently than the seats of 10s

of other banks also located in Frankfurt.

The fact that architects are regarded as professionals is also important.

Although the death of Andy Warhol marked the passing of an era in which

accomplished creators of the fine arts enjoyed the status of stars, the

world’s top architects today are media personalities, sometimes with po-

litical influence as well. Inundated with offers of co-operation, the design-

ers decide to take on merely a few percent of their potential commissions.


In the last couple of years there has been a significant surge of interestin high-class contemporary architecture among investors in Poland.Bartlomiej Sosna and Anna Bedkowska report.

COUNTRY FOCUS

Country focus ED:24sept 5/9/08 11:11 Page 42

Hence, the investors whose projects have been accepted by the most famous

architects feel deeply honoured and it pays to bear the enormous costs of such

endeavours, since the name of the architect is a brand in itself. Buildings start

being famous long before they are erected; their attractiveness along with the

price rise for future customers and users. This phenomenon can be clearly ob-

served on the basis of the above-mentioned Warsaw and Poznan-based pro-

jects by Hadid and Libeskind.

Luxury buildingsA luxury apartment building designed by an Iranian ar-

chitect, commissioned by Lilium, is to rise by the year 2012

in the vicinity of Warsaw’s Central Railway Station. With its

height (250m) and its characteristic blue glass oval mass,

the building is supposed to outshine not only the neigh-

bouring Marriott Hotel, but also the Palace of Culture and

Science. The building plot alone cost Lilium €12 million; the

construction works will eat up another €200 million.

On the other side of the future Lilium Tower, the con-

struction of a 45-storey apartment building created by

Daniel Libeskind, Zlota 44, is to begin immediately. More than a half of the

251 luxury apartments, priced up to €10,000/m2, have been already sold.

The investor, Luxembourg-based Orco Property Group, paid an additional

€10 million to incorporate into the design such energy efficient and eco-

logical solutions as heat-recovery ventilation and rainwater toilet-flush sys-

tems. The building is to be built primarily with recycled materials. This, as

well as the name of the designer, is meant to attract environmentally aware

customers.

Libeskind’s second project, the Korona Tower – currently awaiting the

final building permit – will have a slightly smaller scale (31 floors, 105m

height); its overall cost has been assessed at €105 million. Thanks to the

name of its architect and its deconstructive structure, the building is bound

to become Poznan’s great attraction and, as a consequence, an advertise-

ment for the investor, Wechta.

Kulczyk Holding intends to follow in the footsteps of Commerzbank and

will reside in Europe’s tallest building. Designed by the MWH Architekci stu-

dio, the building is to be erected at the corner of Chmielna and Miedziana

streets in Warsaw by the year 2012. The cost of the building has been ini-

tially estimated at €285 million. Another high-rise office building, which is

bound to stand out thanks to its eyebrow-rising look, is Pro Urba’s invest-

ment in the Kaleidoscope, located at the junction of Prosta and Towarowa

streets in Warsaw. The oval shape building will stand 170m tall; its glass

façades will be covered with special cladding, thanks to which it will sparkle

with a multitude of colours from the outside.

One of the most talented young Polish architectural studios, Medusa

Group Architects, have agreed to design four 11-storey office buildings in the

emergent Silesia Business Park on the border of Katowice and Chorzow. The

high-rise buildings will be covered with irregular slabs of coloured concrete,

to evoke the pattern of geological strata.

An interesting idea that stands a good chance of being realised in

Krakow – if it can overcome the resistance of Krakow’s conservators – is the

completion of the high-rise building known as ‘Skeletor’. The renowned

German architect and constructor of the characteristic buildings in Potsdam

Square in Berlin, Hans Kollhoff, put a proposition to the present owners of the

building (GD&K Group and Verity Development) to transform it into a tower by

means of stone slab facing and a copper cupola, to make the structure resem-

ble Krakow’s other Gothic basilica towers.

Cultural investmentsA number of public investments, primarily ones to house cultural insti-

tutions and entertainment facilities, have been made possible thanks to EU

funding. Every single design competition for a new museum

brings hope for a Bilbao mini-effect, although the designers


Kaleidoscope’sspecially designed

glass façade willsparkle with a

multitude of colours

€2.9BILLIONAmount allocated to bringworld-class architecture tolife in Poland to 2012

The design for the Africarium at Wroclaw Zoo isestimated to cost €29 million


may not yet be stars of world architecture. Buildings like the Parisian

Pompidou Centre (Renzo Piano, Richard Rogers, 1977) and the Jewish

Museum in Berlin (Daniel Libeskind, 1999) – nowadays considered most im-

portant to their cities – made their creators stars of the global architecture

scene. It seems it pays to invest in pioneering, even if sometimes slightly

bizarre and controversial, buildings.

The most eagerly awaited investment of this kind in the last few years

in Poland has been the Museum of Modern Art. After year-long negotia-

tions, the city authorities finally signed a contract with Swiss architect

Christian Kerez on 12 April 2008. The results of the competition, with Kerez’s

minimalist design as the winner, aroused controversy from the very start.

The Swiss project was criticised for being too modest; commentators had

hoped for something spectacular to counterbalance the dominating Palace of

Culture and Science in Plac Defilad (Parade Square). Moreover, the two lowest

storeys of the building, making up to 10,000 of the 35,000m2 of the available

floor space, have been allotted for commercial purposes, whereas the exhibi-

tion space will be confined to two merging concrete cuboids above. Kerez has

agreed to prepare the final design of the building as well as the planning appli-

cation and the tender materials. The construction will commence in 2010 at the

earliest, after the department store in Parade Square has been removed and an

underground segment of the second line of the Warsaw Metro, located under

the future museum, has been completed. The cost of the venture has been es-

timated at €77 million, although due to the rising prices of building materials

and services, it is likely to increase.

Another of Warsaw’s cultural investments with a huge budget, the

Museum of the History of Polish Jews designed by Finnish architects Rainer

Mahlamäki and Ilmari Lahdelma, had its foundation stone laid down in June

2007. The building, which symbolically evokes the biblical parting of the

Red Sea, is to be constructed with less typical building materials, such as

limestone and lithium. Unfortunately, the construction of the building had

to be stopped owing to recalculation of costs, which four years ago were

estimated at €29 million and were to be covered by the city, the Ministry of

Culture and the Jewish Historical Institute. Today, the completion of the ed-

ifice (including the fittings) is estimated at €77m. However, the city has re-


The 20th century wasn’t a great time for Poland’s capital. Smashed

to bits in the two world wars of the first half of the 20th century, it

was then patched up with blocs of crumbling communist concrete

in the second. Now, backed by a resurgent economy, Warsaw is

shaking off its socialist architectural hangover and putting forward

a bold new face of glistening skyscrapers designed by some of the

world’s top architects.

Around 85 percent of Warsaw was reduced to rubble during

World War II, with most of the damage coming in the pitched street

battles of the 1943 Warsaw Ghetto Uprising and a year later

between Polish insurgents and the Nazi occupiers in the Warsaw

Uprising. After crushing the 1944 revolt, the Germans

systematically dynamited most of the remaining buildings and

shipped the surviving residents to concentration camps. That

episode now allows Warsaw to develop its urban areas in ways

Paris, Vienna, Austria and Prague cannot.

“Other cities weren’t destroyed, and that is their advantage,

but also their limitation,” said Tomasz Zemla, Warsaw’s Deputy

Director of Architecture and Planning. “We have a different,

dramatic history, but that allows us to have a whole lot more

freedom in building.”

Mayor Hanna Gronkiewicz-Waltz, who took office in 2006, is

leading the skyscraper charge in Warsaw, and has said she wants

the city to be a place where architects from across the world and

Poland compete. “The city has great potential, and a lot of land to

build on in the centre,” she said. “Warsaw must grow up if it wants

to compete with other big European cities."

RESHAPING WARSAW

assured sceptics that the construction of the museum remains a priority.

The governments of France, the US and Germany as well as private spon-

sors have offered financial support. A tender notice will be released in the

summer of 2008, settled in the autumn and, in line with the most optimistic

scenario, the construction works could resume at the beginning of October.

Warsaw’s National Stadium, designed by JSK Architekten, will cost €343million and is set to replace the Stadion Dziesieciolecia


Also in the capital, the second stage of the public tender for the con-

struction of the Copernicus Science Centre in the Powisle district is underway.

The first stage of investment is to be ready in two years; the second, seven

months later. In its long-term financial plan, the city has earmarked €43 mil-

lion for the development of the centre, while the permanent exhibition and the

multimedia planetarium are to be financed by the Ministry of Science. The

building, designed by Laboratorium Architektury Gilner & Kubec from Ruda

Slaska, the winners of the architectural competition in 2005, will predictably

be built using fibreglass reinforced concrete. The dome of the planetarium,

16m in diameter, will be covered with halftone rust-coloured glass plates. The

building will be adapted to meet the needs of the handi-

capped. Moreover, thanks to such ecological solutions as

light courts and self-cleaning water tanks, the building is

to promulgate the idea of sustainable development.

Regional developmentsAs far as cultural institutions are concerned, interest-

ing projects are planned in other cities as well. In April

2008, Krakow saw work begin on the building of the

Polish Aviation Museum, which will rise in the northern

end of the Polish Airmen’s Park. The aerodynamic struc-

ture, reminiscent of a propeller, was designed by

renowned Berlin-based architects Justus Pysall and Peter Ruge, in co-op-

eration with Polish architect Bartlomiej Kisielewski. Arup Polska will over-

see construction and installation works, while the Berlin-based ST Raum

studio is to take care of landscaping. The main building material will be

architectural concrete (structural), which until now has rarely been used

in Poland. The construction work is to continue until 2010. The invest-

ment, worth as much as €13 million, is primarily financed by the EU (€8.5

million) and from the coffers of the Malopolskie Voivodship.

In Gdansk, where the European Solidarity Centre is to stand, the pub-

lic tender for the construction of the building ignited a conflict. The rules of

the competition, which was resolved in December 2007 in favour of the

Gdansk-based Fort studio, stipulated

that the first and second prize winners

would be invited to join in further nego-

tiations and to produce a detailed design.

The second prize winner, Warsaw-based

Grey architecture studio, estimated their

offer at €0.9 million, whereas Fort was ready to carry out the same project for

€4.6 million. Although neither of the offers exceeds the eight percent value of

the whole investment (estimated at €68.6 million) as specified in the regula-

tions, Gdansk officials were dismayed at the huge disparity, and may seek the

opinion of an external expert. The Centre is to be built by 2010 to honour the

30th anniversary of the Gdansk August Accord. The simple body of the build-

ing, with corten steel façades complemented by smoked glass, relates to the

industrial character of the shipyard. The rawness of materials will be softened

by rich greenery around and inside the building.

Another design contest for a unique building on a global scale – the

Africarium in the Wroclaw Zoo – was resolved in Wroclaw

at the beginning of April. The winning project came from

the ARC-2 architectural studio. A black cubicoid with

12,000m2 floor space will house the exhibition “The life-

giving waters of Africa”, which will comprise artificial

rivers, lakes, coral reefs, a large aquarium with sharks as

well as a restaurant installed in a shipwreck. The city is

prepared to bear the costs of the investment estimated

at €29 million, but still hopes to receive a subsidy from

the EU. The Africarium is to be completed by 2012.

Another example of an architecturally interesting

public investment is the Silesian Museum. On 13 April

2008, after a few months’ talks, the museum’s management signed a con-

tract for the construction of the building with Austria’s Riegler & Riewe

Architekten. The new building will be erected on the site of the Katowice

coalmine and will be entirely hidden underground. The only visible feature

will be two towers illuminating the interior. Thanks to such a discreet solu-

tion, the monumental structure of the former coalmine will be exposed.

Comprehensive project documentation is to be prepared by June 2009.

Construction work will commence in the spring of 2010 and will take two

years. The whole investment, estimated at €68.6 million, will also entail

land development and building of infrastructure. Around 85 percent of the

necessary funding will come from the EU.


Construction of the new Museum of Modern Art in Warsaw, designed byChristian Kerez, will commence in 2010

85%of Warsaw was

reduced to rubble in World War II


Euro 2012An additional factor that has fuelled new architectural projects is Euro

2012, which requires the completion a number of investments in sports fa-

cilities, hotels and infrastructure. The most architecturally interesting of all

the planned stadiums seems to be the project of the Baltic Arena for

Gdansk, which was created in Germany’s Rhode Kellermann Wawrowsky

studio. The golden colour of the outer layer of the stadium is evocative of

the colour and texture of amber. The investment, worth an estimated €143

million, is to be completed by the autumn of 2011. Currently the building

plot is being cleaned; the construction work is set to commence in

December 2008.

The biggest investment, worth €343 million, will certainly be the

National Stadium, designed by the experienced German studio JSK

Architekten. The new stadium will rise in place of the former Stadion

Dziesieciolecia. Since the ground is swampy, it has to be reinforced with

20,000 concrete stakes before the proper construction work can com-

mence. The bid for the staking will be announced in the summer of 2008.

In Krakow, the design competitions for a sports and entertainment

arena and for a congress centre have been resolved. The designer of the

first, whose shape is reminiscent of a flying saucer, is the Krakow-based

Perbo Project studio supported by Poznan’s Modern

Construction Systems. The whole exterior façade of

the arena is to be an enormous screen, which is a very

interesting solution, both for aesthetic and commer-

cial reasons. The investment, estimated at €86 mil-

lion, is to rise by the end of 2012, on the western end

of the Academy of Physical Education Park. The sec-

ond building, designed by Ingarden & Ewy, assisted in

interior design by Arata Isozaki, will be erected in the

next three to four years near to the Grunwaldzki

roundabout. This seven-storey edifice, which will

house a congress hall with a 2100-person capacity, is

to cost the city €71 million. Apart from glass and light

marble, Krakow-specific building materials such as

limestone and brick will also be used.

In the immediate vicinity of the future congress

centre, construction work on a new hotel with the

working-name Stepped on Frog is in full swing. The project was designed

by German architect Jurgen Meyer, with the assistance of Ovotz Design Lab

and Joi Design. Not only will the body itself be eye-catching, the structure

of the façade is also set to be stunning, made from aluminium intertwined

with dark glass. The building was initially to serve as office space but, con-

sidering its location, the investor SOF Debniki Development, a member of

the UBM Polska and GD&K Group, decided that it will also hold a three-and-

a-half-star Park Inn hotel. The investment, worth €26 million, is to be com-

pleted in 2009.

This revival of the Polish market has been fostered by the favourable

economic conditions and by a shift in the aesthetic approach towards ar-

chitecture. Today’s 20 and 30-year-olds have already had the chance to take

advantage of open borders; they travel easily and enjoy almost unlimited

access to the solutions offered by the world’s architectural milieu.

Nowadays, thanks to inter-university agreements, scholarships and place-

ment programmes, young Polish architects can study and work all over the

world, drawing on the experience and skills of world-famous designers. All

these factors mean that gradually there will be more and more architectur-

al studios emerging that, following good international examples, will cre-

ate architectural space in Poland in a conscious and original way, bringing

it closer to global standards. �


Bartlomiej Sosna and Anna Bedkowska are construction industry analysts at PMR Research.

Warsaw’s museum of the history of Polishjews symbolically evokes the biblical

parting of the Red Sea

A hospitality facility that will certainly stand out as original

is the Hilton Wroclaw Hotel, which was awarded a prize

at this year’s Cannes International Real Estate Fair.

Thanks to the application of the extraordinarily durable

Corian material, many construction limitations were

successfully overcome. As a result, the build will take the

form of an organic structure, one wholly devoid of right

angles. The author of the project is the Parisian

Gottesman-Szmelcman Architecture studio. Presently,

earthworks are underway on the plot on the edge of

Dominikanski Square. The investment, worth €86 million,

is scheduled to open in 2010.

HILTON WROCLAW HOTEL



PROJECT FINANCING

Over two-thirds of senior executives within the European infrastruc-

ture and transport industry expect the volume of deals and level of

financial investment in European infrastructure projects for the next

12 months to either increase or remain consistent with the past year, ac-

cording to a recently released survey by international law firm Freshfields

Bruckhaus Deringer. The results follow a tough year so far for the industry,

with the credit crunch contributing to activity dropping 40 percent in terms

of number of deals completed during the first six months of 2008, com-

pared with the same period in 2007.

Activity levels for the next 12 months are expected to be concentrat-

ed on energy utilities (61 percent) and renewable energy (56 percent)

with transport projects on roads (53 percent), rail (45 percent) and avi-

ation (44 percent) also likely to feature. Social infrastructure projects,

such as schools (33 percent), hospitals (28 percent) and prisons (22 per-

cent) – which in recent years have experienced a boom – are, in

contrast, expected to slow.

“With the credit crunch denting optimism across so

many industries, the infrastructure and transport sector

appears to be holding strong and pointing towards a de-

cisive focus on traditional infrastructure, particularly

energy and renewable projects but also rail, road and

aviation,” says Nick Bliss, co-head of Freshfields’ Global

Infrastructure and Transport team.

Among the reasons behind the industry’s focus on en-

ergy and renewables, Bliss cites the skyrocketing price of oil,

the fact that governments worldwide are keen to improve energy

security, dwindling energy reserves, nuclear plants coming to the end of

their lifecycles, the unbundling of the European energy market, demand

and growth of energy requirements in the emerging markets, as well as the

regulatory and socially driven impetus for the energy sector to respond to

climate change as major factors. “There’s a plethora of urgent issues stok-

ing up demand for new, modern energy infrastructure,” he says.

Funding investmentA more detailed analysis of the results from specific respondent cate-

gories suggests investors being slightly more optimistic (80 percent ex-

pecting European deal volumes to increase or stay the same) than credit

providers (60 percent) – a distinction far less discernible in relation to ex-

pected deal values (68 percent compared to 60 percent).

Despite a more positive outlook for the future, constraints within the

market remain: the increasing cost of debt, continued downward pressure on

individual credit providers’ exposure levels, the tightening of covenant pack-

ages and limited accessibility to the capital markets, particularly after recent

monocline downgrades. “Market conditions are undoubtedly tougher, but re-

INFRASTRUCTURE SECTOR ANTICIPATESSTRONGER YEAR AHEADDespite doom and gloom merchants predicting the onset of recessionary conditionsacross a number of industry verticals, reports of the demise of the infrastructure sectorhave been greatly exaggerated.

cent deal closures and forward-looking announcements can give cause for op-

timism,” says Bliss.

Recently completed deals include the Future Strategic Tanker Aircraft

(FSTA) deal in the UK (which had a UK£2.2 billion senior debt requirement

plus UK£105 million mezzanine and UK£180 million equity bridge facilities);

and the UK£3.6 billion acquisition of Angel Trains. Future projects that have

been recently announced include high-speed rail programmes in Portugal

and Poland, the ongoing public private partnerships (PPP) road programme

in Russia and India and PPPs in the USA – including the long-anticipated

US$12.8 billion acquisition of the Pennsylvania Turnpike.

Longer-term viewThe picture for the year ahead is consistent with forecasts for the next 10

years, where renewable energies (77 percent) and energy utilities (65 percent)

are expected to provide the greatest opportunity for growth. These are

followed by road (53 percent), rail (49 percent) and significantly,

nuclear (45 percent) ahead of aviation (43 percent). Schools

(32 percent), hospitals (25 percent) and prisons (23 per-

cent) are not widely regarded as major growth areas.

“The continued strength of interest in transport in-

frastructure such as roads, rail and airports is not sur-

prising given the attractiveness of the long-term stable

returns that can be generated by such assets to a growing

group of investors such as infrastructure funds, pension

funds and sovereign wealth funds,” continues Bliss. “However,

over the long-term the highest levels of activity are, once again, ex-

pected to be in energy.”

Bliss warns that one of the main challenges for continued growth in in-

frastructure deals for the year ahead remains pricing and, invariably, fund-

ing. The large infrastructure deals of 2006, such as Ferovial’s acquisition of

BAA and Macquarie’s acquisition of Thames Water, were supported by the

availability of cheap and readily available debt. The debt markets have

clearly undergone a radical change since August 2007, leading to higher

levels of equity, vendor loans (to sustain, as far as possible, vendor exit

price expectations) and an almost-total closure to infrastructure deals of

the monoline wrapped bond market (exacerbated by the recent MBIA and

Ambac downgrades). This has consequently led to an increased reliance

upon bank debt, higher debt margins, reduced ticket sizes on the part of

banks, tighter covenant packages and more conservative financial ratios.

“The overwhelming view from the survey’s respondents is that sellers’

price expectations are too high and remain at pre-credit crunch levels with

only limited evidence to the contrary. The market is, in truth, expecting a

price correction for infrastructure assets which has not yet come through,”

concludes Bliss. �

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Assembly and bolting of the crane sys-

tems is easily carried out: the assembly plat-

forms are integrated in the tower segments.

There is no need for draping of assembly

platforms, which can be time-consuming.

Flat top cranes made by Terex Comedil

offer low-cost transport and quick assembly

with fewer complete sub-assemblies. The

upper crane, which has been completely

pre-assembled, can be installed with only

four auto crane hoists: slewing platform with

cabin system, counter jib, jib heel section

with hoist and trolley winch gear unit, as well

as a trolley with lifting crane hooks including

reeving ropes and the (pre-assembled) jib.

The assembly work performed at height is

thereby kept to a minimum.

Alternatively, the upper crane can also

be assembled in individual steps at height –

depending on the amount of available space

on the construction site or the availability of a

large mobile crane.

Thanks to the modular concept for tower

and jib elements as well as cruciform bases,

the crane can be customised, depending on its

conditions of use. The operator disposes of a

true modular assembly system from the base to

the jib point. The jib components can variably

be used for small or large cranes. The use of

modern control technology and frequency con-

verters for hoist, trolley and slewing gear drives

provides a smooth and effi cient lifting opera-

tion. The new Panaroma cabins offer an excel-

lent view of the load and the construction site.

The workplace, which has been ergonomically

designed, ensures light and tireless operation.

Quick assembly cranesThe selection of quick assembly cranes

ranges from 18 to 40 meter tons and offers jibs

of up to 40m. The CBR Plus series consists of a

transport unit, which is ready for assembly with

a tower and jib package, complete reeving ropes

and central ballast – even loading in containers

is possible due to the compact design. The well-

designed assembly kinematics provides secure

installation, even in tight spaces. The crane

impresses with state-of-the-art technology: the

switch cabinets are integrated in the central

ballast and the drive components are fully en-

closed. A compatible transport axle with ABE

(road homologation) is available for road trans-

portation. The standard frequency converters

for hoisting, trolley and slewing gear help make

crane operations smooth and precise. All cranes

are equipped with remote radio control.

Luffi ng jib tower cranesSpecially developed for urban use, the

CTL class offers jibs with an outstanding reach

without requiring too much room for slewing

motions – a special advantage if many cranes

are to work on high-rise building and power

plant sites. CTL cranes can work without a

bulky base given their mobile counterweight

system. The integrated AWLR system pro-

motes quick work cycles and easy handling.

For more information Christian Schorr-Golsong can be reached at Terex Demag GmbH, Dinglerstrasse 24, 66482 Zweibruecken, Germany, by phone on +49 6332 83 1738 or email at [email protected]

Terex Comedil’s portfolio of fl at

top cranes ranges from 51 to 720

meter tons with jib lengths of 25

to 85 metres. Many things speak

in favour of fl at top cranes: they

make perfect sense if a range of tower cranes

work simultaneously in a confi ned space on

large construction sites, if used in the imme-

diate vicinity of airports or in extreme situa-

tions such as in industrial halls. Without the

‘tops’ of conventional tower cranes, several

metres of assembly height can be saved and

therefore tower cranes can, in general, be

stacked lower. The benefi t for the user: fewer

tower segments, smaller tower systems or,

alternatively, no special tower combinations

and therefore lower investment costs.

Another advantage of the lower installa-

tion is the more fl exible choice of the required

mobile crane for assembly: as a result of

lower overall heights and favourable individ-

ual weights of assembly containers, smaller

mobile cranes with less lifting capacity and

boom length may be used; for example, a

100 ton mobile crane can be used in lieu of a

160 ton mobile crane. The lack of a head and

anchor poles make the work of the assemblers

easier and saves on assembly time.

A whole range of cranesTower crane specialist Terex Comedil is considered the pioneer of fl at top cranes. In addition, the company offers a whole range of quick assembly cranes and luffi ng jib tower cranes. Marketing Director Christian Schorr-Golsong explains more.

“The use of modern control technology and

frequency converters for hoist, trolley and slewing

gear drives provides a smooth and effi cient

lifting operation”

INDUSTRY INSIGHT

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INDUSTRY INSIGHT

Specifi cations for high-tech road

building are becoming increasingly

sophisticated – especially in the fi eld

of automatic compaction, compaction

control, measurement and total documentation.

Faced with the challenges of lower government

spending, higher energy costs and tougher en-

vironmental protection, contractors need to be

sure about the effi ciency of their plant and the

quality of their output. The avoidance of prema-

ture road failure due to insuffi cient compaction

and the implementation of lower-cost compac-

tion processes are twin goals where intelligent

technology is becoming indispensable.

For years, measuring technology has

been synonymous with effi ciency and quality

control in compaction and has proven itself on

innumerable construction sites and large-scale

projects. BOMAG’s measuring and documenta-

tion system not only optimises the compaction

process and documents results, number of

Intelligent technologyNew technology for high-tech road building wins cost and energy savings.

passes, amplitude, frequency and working

speed, but even detects and stores material

stiffness values. Documentation is handled via

the well-proven BOMAG BCM 05 Compaction

Management System. The EVIB value is the only

measured value based on MN/m2 that offers re-

liable compaction control as a physical value for

all soil-based and most asphalt-based applica-

tions. This produces a signifi cant advantage for

the contractor as he can monitor the compaction

of all layers from sub-base to asphalt, using the

same measurement value – comprehensive and

consistent documentation for the entire project.

State-of-the-art BOMAG rollers can be

equipped with an automatic compaction con-

trol system (ASPHALT MANAGER), while single

drum rollers can be equipped with VARIOCON-

TROL. These systems allow drivers to see key

compaction data on a display screen – thus

dispensing with guesswork. Unnecessary

passes are avoided, saving time, money and

protecting the environment. With each pass,

the driver sees a surface picture of the site and

the level of compaction achieved. The EVIB

value in MN/m2 is continuously calculated and

indicates the achieved level of stiffness. Both

ASPHALT MANAGER and VARIOCONTROL regu-

late the compaction force to the load-bearing

capacity of the sub-base. Drivers use auto-

matic mode for approximately 90 percent of all

applications, but a manual setting for jobs in a

BOMAG is a global market leader in compaction technology. The company, situated in Boppard,

Germany, belongs to the French FAYAT Group and produces compaction machines, stabilisers/recyclers,

milling machines and pavers. In 2007, around 2000 employees achieved a turnover of €634 million.

sensitive environment (e.g. close to buildings

or on bridges) is always available. So BOMAG

compaction control and measurement technol-

ogy also offers the contractor the highest detail

in the way in which it documents the quality of

work for each compaction site.

Since 2007, BOMAG has made the BCM

05 positioning software module available for

comprehensive GPS supported documentation

on all tandem rollers with ASPHALT MANAGER,

on single drum rollers with VARIOCONTROL and

on all fourth-generation single drum rollers. As

a DGPS solution, BOMAG uses the compact and

fast Starfi re iTC system, which is simple to install

and works with a satellite supported reference

service with accuracy down to at least 20cm.

However, BOMAG software interfaces with all

conventional DGPS systems with and without

reference stations. Positioning precision de-

pends on the GPS system chosen by the con-

tractor. The raw data supplied by the system can

then be transformed into on-site co-ordinates

using the BCM 05 positioning software and are

documented along with the BCM 05 results.

All decisive variables for compaction are

recorded and can be displayed individually or

combined on the BCM 05 display as a multi-

coloured map to support the roller driver. The

system is fully automated: manual, track-bound

entry of positioning data is no longer necessary.

However, if the GPS reference satellites are not

available, compaction control and documen-

tation of track-bound work can continue and

position data can be entered manually.

In this way, the contractor is always able to

control the compaction, to avoid wasteful roller

passes and to provide consistent documenta-

tion of the quality of his work output, avoiding

subsequent problems. Cost effi cient, energy ef-

fi cient and reliable: the key features of intelligent

technology on modern road building projects.

By Dr Iris von Kirschbaum, Head of Communications, BOMAG. Hans-Josef Kloubert is Product Manager for the described technologies.

“For years, measuring technology has been

synonymous with effi ciency and quality control in

compaction”

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CAMP NOU STADIUMThe existing stadium bowl is to be retained with

the upper tier expanded to accommodate extra

seating capacity. The stadium will be enclosed in a new mosaic

composed of translucent panels in the colours of the FC Barcelona

club. The enclosure will act as a rain screen around the sides of the

stadium allowing naturally ventilated concourse areas. The design

also includes photovoltaic panels to harvest solar energy. At night,

lighting will make the enclosure glow in bright colours and feature

animated effects to give the stadium a changing image and

dynamic response to environment and events.

PROJECT STATS:• Projected capacity increased from 98,000 to 106,000

• Approximate budget is €250 million

• The project includes a new stadium museum

LIA MANOLIUARENAThe Lia Manoliu Arena will

be the first five-star venue in

Romanian football and is

predicted to host European

competitions when it is built

by April 2010. The arena

will be built on the site of

the Lia Manoliu Stadium, built in 1953, which

has now been demolished to make way for the

new arena. The arena will be built from in-situ

concrete and prefabricated parts, with a membrane covering.

The arena is expected to hold 55,000 people, with a potential

expansion to 63,000.

PROJECT STATS:• The stadium is named after Lia Manoliu, a Romanian discus

thrower who competed at a record six Summer Olympics, winning

three medals, two bronze and one gold

• The arena is expected to cost €142 million

• The stadium is the first one built to support a possible bid for Euro

2020, which Romania and Bulgaria are prepared to jointly host

Project watchEU Infrastructure takes a look at the

sports stadiums across Europe that arecurrently under construction.

OLYMPIC STADIUMThe innovative design of London’s Olympic Stadium allows for an

80,000-seat athletics stadium to be converted into a more easily

maintained 25,000-seat venue after the Games. The Olympic Stadium

will be at the heart of the London Olympic and Paralympic Games,

with all athletics events taking place in the stadium, as well as the

opening and closing ceremonies. A roof will stretch around the

stadium to provide cover and support the lighting and sound

systems used to stage the Games. It will be built to international

track and field standards for athletes.

PROJECT STATS:• Construction started in May 2008

• The stadium is on an island site, surrounded on three sides by

waterways

• Construction is scheduled to finish in 2011, in time for test events to

take place before the Games

PROJECT WATCH:24sept 5/9/08 11:58 Page 54


SHAKHTAR STADIUMShakhtar Stadium will be the first

stadium in Eastern Europe to be

designed and constructed in compliance

with EUFAs five-star guidelines. The iconic

design features a sloping roof from north to

south in line with the site, a glass façade

providing views into and out of the stadium, and

clear external concourses that are sympathetic to

its surroundings in Leninskiy Komsomol Park. It

has seated accommodation for 50,000 spectators.

PROJECT STATS:• At the project peak, over 1000 construction

workers will be working on the stadium

• Approximately 4300 tones of steel will be used

in construction

• Opening is scheduled for 2009

BALTIC ARENAThe Baltic Arena will be the first stadium in Poland to

comply with all UEAFA regulations. The project is

estimated to cost around €170 million and the expected

capacity is 44,000, when it is completed in 2011. The

outside walls will be made of amber coloured material that will be illuminated at

night. The stadium will be built on a site raised from the ground, which will make it

visible from almost anywhere in Gdansk, as well as from the sea.

PROJECT STATS:• It will take just 10 minutes to get from the city centre to the stadium via bus,

tram or train

• The stadium will be used for the European Football Championships, which will

take place in Gdansk in 2012

• The stadium will cover around four hectares, but combined with surrounding

car parks, green areas and a training pitch it will cover 37 hectares

SWEDBANK ARENAThe Swedbank Arena will be the largest in the

Nordic region and will serve as Scandinavia’s premier

football and entertainment venue. One of the greatest

structural engineering challenges will be to engineer

the steel structures that will bear up the weight of the

retractable roof that extends over the pitch – each half

of the roof weighs a full 400 tonnes, plus the considerable

extra load arising from snowfall.

PROJECT STATS:• The arena is scheduled for completion in 2012

• It will accommodate 50,000 spectators during football

matches and 65,000 at concerts

• It is calculated to cost around €192 million

PROJECT WATCH:24sept 5/9/08 11:17 Page 55


THE BIG INTERVIEW

Eurostar ed:24sept 5/9/08 11:12 Page 56

The first thing you notice on arrival at Eurostar’s

London headquarters is the gothic splendour of

the recently revamped St Pancras station, the

company’s new centre of operations. Over the

past few years, a spectacular modernisation pro-

gramme has seen the terminus transformed from a soot-

smeared, neglected and half-empty shell of a building into

one of the continent’s most impressive transport hubs. And

as Europe’s gateway into London, St Pancras is set to be re-

born as one of the capital’s iconic landmarks.

The catalyst for the renovation was Eurostar’s decision to

relocate there from its previous base at Waterloo. The high-

profile move, designed as the first stage in CEO Richard

Brown’s grand plan to make the high-speed rail network more

accessible to millions of Britons – and the UK more accessi-

ble to European visitors – has been an unprecedented suc-

cess. Passenger numbers are up, journey times are down and

Eurostar recently announced record sales figures. Brown is a

happy man. But what other challenges are on the horizon for

the company and its charismatic chief executive? EU

Infrastructure caught up with him to find out.

EUI. There’s been a huge expansion in the high-speed rail

network across continental Europe over the last few years,

and now it is also over here in the UK. What opportunities

has this opened up for Eurostar?

RB. Well, first and foremost, the completion of the UK’s first

high-speed line represented a complete overhaul of our ini-

tial network, enabling us to run high-speed rail all the way

through from central London to central Paris and central

Brussels. It’s reduced the journey times significantly – the

fastest time from Brussels-London is 1hr 51 minutes, and

Paris-London is 2hrs 15, which has really improved the ac-

cessibility between three of Europe’s key cities.


As CEO of high-speed rail operatorEurostar, Richard Brown is a centralfigure in one of the most excitingperiods in the history of Europeanrailways. EU Infrastructure’s SeniorEditor Ben Thompson caught upwith him to discuss the future of railin Europe and why expanding thenetwork is critical.

Richard Brown envisages the development of high-speed raillinks as a form of economic regeneration, citing Lille inFrance as a city transformed by the arrival of Eurostar


Moxa.indd 58Moxa.indd 58 1/9/08 15:23:311/9/08 15:23:31

EUI. And I guess it offers the opportunity to increase expansion across all

of the other high-speed rail networks in Europe?

RB. That’s the second phase, if you like. The first phase is just our core mar-

kets: Brussels-London and Paris-London, where we’ve seen tremendous

growth as a result of the high-speed line. We’ve seen 25 percent in sales

growth and 18 percent passenger growth in the first half of the year versus

last year, which is pretty good.

That’s partly about faster times and the increased accessibility to the

market for day trips by business people between London and Paris. The

market for people using that has more than doubled because we can now

get people to London before 8am in the morning and Brussels before 9am

in the morning. It allows people to do a full day’s work without having to

stay in a hotel, so it’s improving productivity for business people.

EUI. One of the key advantages is that it delivers people from city centre

to city centre. Has this been a factor?

RB. Absolutely. Our new hub at St Pancras International is a much better,

more accessible terminal station in London than Waterloo. For one thing,

it’s the right side of Central London (most people live north of London, not

south) and it’s on six London underground lines. So, it’s accessible to the

rest of London and to the rest of Britain. And the new line is more reliable.

It’s a new, purpose-built infrastructure, and as such our punctuality rates

for the first half of this year are 92.6 percent. The comparable figure for the

airline industry is 62 percent punctuality. So, it’s a service that people know

they can depend on.

For phase two, we see High Speed 1 as plugging Britain and Eurostar

into that extended European high-speed network. So through Railteam –

the group of eight of the north European high-speed train operators – we’re

working hard to develop through-travel from one op-

erator to another using a simple fare structure and

easy-to-access timetable information, so travelling

around that rapidly growing network becomes as easy

as travelling domestically.

EUI. I guess the key idea there is the access the new

line provides to the rest of the European network,

meaning you can utilise existing infrastructure rather

than having to build it yourself?

RB. Exactly. Each new link in that infrastructure net-

work contributes to the performance of existing links,

as well as providing new accessibility for operators and opening up new

journeys between new cities for passengers. So, there’s a lot of synergy as

that network continues to expand. For instance, France and Spain will be

joined up in the next few years with high-speed. So, you will be able to take

Eurostar from London to Paris and switch to TGV from Paris to Spain. It re-

ally does open up a much wider range of journey possibilities.

EUI. Clearly there’re a lot of opportunities, and I have no doubt that con-

necting up that infrastructure also presents a number of challenges. What

are the key challenges for you in terms of infrastructure development?

RB. For the UK, the key challenge is whether we will see a High Speed 2 and

a High Speed 3 linking the rest of Britain into London and to Europe. There’s a

growing body of opinion, particularly in some of the regional cities, that being

linked to that Europe-wide network will be essential in the coming years.

On the continent, I think it’s much more accepted that high-speed is

the way forward. The challenge is just continuing to run out the network.

As an operator, the challenges are more how we get the reservation sys-

tems and the fare systems for what are essentially national railways to talk

to each other and to link up for consumers, which is a key project for

Railteam. Then having done that, to put in place simple, attractive through

fares. At the moment, if somebody wants to go from London to Austria, you

end up putting fares together from two, if not three, different operators for

different portions of the journey. And it’s no surprise that what you end up

with doesn’t necessarily bare much relation to the market price. So that’s

clearly a big challenge: to get national operators to think in terms of an in-

ternational market.

EUI. What do you think the market is for further expansion of the high-

speed rail network within Great Britain? I was speaking to somebody re-

cently who suggested that we are better off modernising the existing rail


The design of the new maintenance facility in East

London was largely driven by the Eurostar team and its

layout was based on the operational requirements of the

maintenance crews. “At our previous facility, we had two

different maintenance sheds: one for high throughput,

overnight servicing and one for heavy maintenance

involving more significant work,” explains Brown. “We

have just one shed at our new base in Temple Hills, but

one that offers a much higher degree of versatility in

terms of what we can do there.”

One key advantage is the ability to

dramatically cut down on the unnecessary

movement of trains around the facility. “It

takes quite a while to trundle quarter-mile-

long trains all over the place to go through

the washing machines, to go through the

toilet discharge facility, to go over the

systems that check the wheels, and so

on,” says Brown. “At Temple Hill, we were

able to optimise the layout so that we

could minimise the amount of train

movements and maximise the amount of

time available to work on each train.”

An additional benefit was that the company was able

to cut down on the time staff spent travelling around the

huge facility. “It’s about two-and-a-half miles long, from

one end to the other. The actual shed is obviously just a

quarter-mile long (a train length) but even so, if you’re

working in a car at one end of the shed and you’ve got to

go to the store at the other end to pick up a replacement

component, it’s still a half-mile roundtrip. It’s actually a

quite interesting logistics exercise.” To help address the

challenge, staff now use bicycles to get from one end of

the shed to the other.

NEW FACILITY OFFERSMAINTENANCE OPPORTUNITY


from initial concept to opening. There are an awful

lot of planning processes to go through on a project

of this size and scope – routes to approve, stake-

holders to consult, due process procedures to im-

plement, and so on. I think High Speed 1 took nine

years from the start of construction to project completion because we are

such a densely populated country. So, these things are not quick. This is

a long-term project.

The UK rail network is steadily improving; on the West Coast Mainline,

the completion of the final round of improvements should see frequency

go up and journey times come down. And there are quite significant im-

provements that have been planned for the East Coast route, too, to im-

prove frequency and journey times. But it’s all incremental improvement.

What’s needed, in particular for the longer-term, is a further step change,

which only proper high-speed rail can bring.

EUI. Let’s talk a little bit about the move to St Pancras, which took place

last November. You moved overnight, in one night – that must have been

quite some undertaking?

RB. Yes, it was. We spent three years planning it, progressively putting in

the detail, and broke it down into three main segments, managing each one

infrastructure to meet 21st century standards rather than building com-

pletely new lines. What do you say to that idea?

RB. I think he’s a bit behind emerging thinking. There is undoubtedly huge

potential for additional high-speed lines in the UK, and I think there are

three main strands to the business case. First and foremost, it will improve

accessibility between regions within the UK. Air services are already pret-

ty congested, and they’re not going to get any better: concerns over climate

change mean the addition of new flights is not an option, and you can’t fly

any faster because of the extra fuel this uses. You could build more roads,

but nobody’s suggesting that as a solution – besides which, the new roads

would not really be any faster than the existing infrastructure. The only way

of improving accessibility and bringing journey times down is therefore to

build high-speed rail lines.

The second argument is transport capacity. It’s generally recognised

by both the UK government as well as the rail industry that we’re going

to need to look at new rail lines in the UK over the next 20 years because

existing lines will be full to capacity in that timeframe. And if we’re going

to build a new line, then surely we should build it to 21st century stan-

dards? The incremental costs of building new lines to high-speed spec-

ifications are quite low compared with the costs of building the new line

in the first place.

EUI. I think he was advocating the modernisation of the existing railway

lines rather than prioritising the construction of new, high-speed lines…

RB. This is where the thinking in the UK has moved on

quite a lot in recent years. The experience of upgrading

the West Coast Mainline has shown that even moderni-

sation programmes can be very complex – upgrading the

existing lines is extremely disruptive and very expensive

and does not produce the same degree of benefits. In

fact, only last July the UK government said very clearly

that not only can we anticipate the need for more capac-

ity over the next 20 years, but also that the best way of

providing additional capacity is building new lines.

Of course, the third argument is the sustainabili-

ty/environmental angle. For one thing, high-speed rail

is electric because diesel engines cannot develop the

sort of power-to-weight ratio that you need to travel at these higher

speeds. And the fact that we run on electricity allows us to source ener-

gy from any fuel source, meaning we can go to the cleanest types of en-

ergy possible, whether that be nuclear, renewable, carbon-sequestered

coal, whatever. So, it’s a low-carbon, future-proof method of travel as

well, and it’s already greener than flying or driving and will get greener

still in the future.

EUI. So if the arguments are so compelling, why do we not have any plans

in place to further expand the high-speed network in this country?

RB. That’s a very good question. The issue of why Britain does not have a

high-speed network when every other major European country is rapidly

expanding theirs certainly needs resolving. Part of it is that we in Britain

have had a lower level of investment in transport, particularly in rail, than

a lot of other European countries. It’s also partly a matter of the political will

required to commit to an initiative that could take 20 years to see through


8.26MILLION

Passengers carried byEurostar in 2007



£5.8 billion The total cost of the Eurostar High Speed 1 project, including £800 million spenton restoring and modernising St Pancras station

50 million Man-hours required to completethe Eurostar High Speed 1 project, including therenovation of St Pancras

1 million Bricks replaced with new onescast from Leicestershire clay, sourced speciallyto ensure they are the same colour as theoriginals

300,000 Welsh roof slates replaced, with thematerial dug from the same quarry as the originals

18,000 Self-cleaning panes of glass used on the roof

8000 People involved in the restoration andmodernisation of St Pancras

1868 Year when the original station, with itsvast, single-span roof and Victorian Gothicfaçade, opened

3500 The highest number of workers on siteat any time

96 The length in metres of the station’schampagne bar, the longest in Europe

60 The number of shops on the mainline railand Underground concourses

21 Different nationalities have worked on site

6 The number of Eurostar platforms (also thenumber of King’s Cross St PancrasUnderground platforms)

4 The number of Midland Mainline platforms

3 The number of platforms for the new high-speed Kent rail link run by Southeastern

2 The number of Thameslink platforms,replacing the station in Pentonville Road

ST PANCRAS IN NUMBERS


as a separate project. The first part was the move itself, and believe it or

not, moving to St Pancras was the easy part of that project! The hard part

was simultaneously moving our maintenance operation overnight from its

previous base in West London to the new location on the new line near

Stratford in East London. That was seriously hard, because we had to do all

our maintenance overnight, and doing that without interruption to service

was the big challenge. So, that was the first project.

We also had a project that ran for a year to keep staff well-informed,

show them the new locations, answer all their questions and provide them

with the basic information to pass on to passengers. For one thing, we were

quite worried that we would lose a number of staff in the process because

of longer journey times to work in the morning and the extra hassle of mov-

ing to a new location; and secondly, we wanted our staff to be enthusiastic

and knowledgeable about the move so that they could translate the bene-

fits to our customers.

Then the third project was focused on taking our passengers with us

and communicating the details of the move to over eight million of our cus-

tomers. In the event, we only had five people turn up at Waterloo in the first

week after we moved – a Japanese couple who didn’t speak very good

English, and a family of three who had booked months before to go to

Disney and didn’t read the newspapers. It was pretty amazing, really.

EUI. And what benefits does the new station offer?

RB. For starters, we’ve got at least 70 percent more capacity at St Pancras

in terms of our ability to handle passengers. The biggest constraint on our

capacity, is passenger baggage screening, and Waterloo just wasn’t set up

to handle the huge volumes we’d like. At St Pancras, we basically use

pretty much the same processes as the airline industry, which is unique.

I think the Spanish have limited security on their high-speed trains be-

cause of their recent experience of terrorism, but we’re pretty unique

amongst train companies in having that level of security. It’s obviously

important that passengers feel safe and secure and they’re reassured.

EUI. Obviously you’re an operator, but to what extent were you involved in

the construction of the new station, upgrading the lines, that type of thing?

RB. Well, the line itself was largely set and designed years ago.

Technically it was a really complex project – obviously it’s very challeng-

ing driving a new line through a pretty densely urbanised area like

London and the surrounding suburbs, so that project involved a lot of

consultation and we were involved in that, naturally. We were also very

closely involved in the final layout and design of the operation at St

Pancras, in terms of advising on passenger flows and those types of

things. It wasn’t easy, because the original St Pancras station is a his-

toric building and is Grade One listed, so everything that happens there

in terms of new construction, renovation or modernisation has to be ap-

proved by English Heritage. So reconciling the need to provide a mod-

ern transport infrastructure within the setting of a historically significant

building was our major challenge. �


“It’s very challenging driving a newline through a pretty densely

urbanised area like London and thesurrounding suburbs, so that project

involved a lot of consultation”


Airwave_AD.indd 63Airwave_AD.indd 63 1/9/08 15:17:521/9/08 15:17:52

Since joining Transport for London (TfL) in early 2007, Phil Pavitt,

Group CIO, has been one busy man. He has managed to remodel the

entire information management team to become more customer-

centric as well as continued to tackle the huge challenges around the TfL

transformation, remain cost-effective and focused on new technologies.

In terms of his focus on customers, Pavitt is keen to set the scene: “Like

all IT departments, it’s important to have focus, something we can really aim

for. When I arrived here the IT teams were very good in themselves, but were

functionally heads down, looking at what they were doing. Really getting

them to look at the bigger picture was the theme of customer-centricity.”

So, why was Pavitt so keen to focus on the customer? “We decided to re-

ally focus on the internal customer because they are serving the ultimate cus-

tomer, the real user of our services at TfL. From there we began to move to

look at the absolute user of the transport services here in London,” he ex-

plains. By showing the IT teams how they fit into the bigger picture, Pavitt mo-

tivated the team to work harder. Getting employees to recognise their role in

the overall look and feel of the organisation and its impact on the customer

has been a prime way to drive the passion among staff. “We needed to

demonstrate that although your job might be to load a disk every night that

goes into the system, it’s not just an activity, it has an impact on customers,

it’s part of a very big jigsaw that faces the customer,” says Pavitt.

The CIO goes on to explain that it has become a self-perpetuating

process. “Over the last few months, instead of me having to ask, the team

have come to me and asked to change certain issues – so they are finding

customer-centric issues, fixing them, or asking someone to help fix them,

to remove the barrier.”

ChallengesOther than focusing his team on the notion of customer-centricity,

Pavitt has had some other big challenges to cope with. He sees two sets of

challenges, the first being to harness the functional IT teams to operate as

one team. “Each team were fine functioning on their own, but trying to get

a pan-TfL approach has been the number one strategy: getting people,

technology, investment and purchasing and aligning them around a theme,

in this case customer-centricity,” says Pavitt.

Secondly, Pavitt has been looking at getting to the next generational

leap in terms of technology. “We are well known to be looking to go to a

very thin client-based solution, to use some very modern technology to re-


Customer centricity forLondon’s public transportEU Infrastructure speaks to Phil Pavitt, Group CIO atTransport for London, about his number one aim: to makethe traveller top priority.

Transport for London:24sept 5/9/08 11:22 Page 64

ally enable our staff to be mobile, to provide information to our staff that

they can instantaneously provide to the customer to help them with their

journey,” says Pavitt.

In order to tackle the challenges, Pavitt has been addressing a strate-

gy that he presented to the board back in September 2007 covering the

next two years, up until September 2009. It included an investment pro-

gramme and a benefits programme that includes a technology refresh,

and has become the strategy that has been adhered to and drives the

teams further, to go and deliver. “The second thing that we are looking at

is working out both the cost and the services we provide to our customer

and then rationing out the performance against key performance indica-

tors, which involves us working with our third party

and ourselves to actually hit the right number.”

Real-time informationOne of Pavitt’s ultimate ambitions is to provide real-

time information delivery around travel schedules, de-

lays, routes and alternatives. He believes that the major

impact that he can provide in IT terms is real-time infor-

mation. Pavitt wants a customer to be on one mode of

transport and then be able to decide to stay on that

mode of transport or move to another one, and make

that decision based on core information. TfL currently

provides this data to customers through Journey

Planner, which helps a customer plan a journey to multiple destinations,

but Pavitt is working to get this information to the customer in a way that

they can see it on the device they want to use, for example, on a mobile

phone or a handheld, and between datasets to make a decision. “It’s prob-

ably the single biggest and most exciting technology because customers

making those choices based on our data is phenomenal,” exclaims Pavitt.

However, it is also the largest challenge because all the datasets have

to be harnessed using the same standards and presented in a way that

does not confuse the customer, to enhance their knowledge and help them

make choices. “The biggest test for us,” says Pavitt, “is when people arrive

during the Olympics, for example, in an airport like London Luton, and have

quite a large journey to make. If they can do that using information that we

can provide them, it will be a demonstration of their ability to make real-

time decisions. Although we are currently seeing the information provided

individually, over the next 12 to 18 months trials will be performed to see

real-time information on a combined basis, and depending on how the tech-

nology performs it is likely that more and more people will be brought into

the process.”

Pavitt also has the typical CIO ambitions, namely to make sure that

the cost-effectiveness of the IT provided to both internal and external

users is the best in the industry and to make sure that the total cost of

ownership is better than industry standards across the world. “At the end

of the day, we are the single biggest transport authority in the world, and

we should have IT that really helps the customer to complete their jour-

ney well,” says Pavitt. “Our 2025 view of transport,

which is a publicised policy going forward, talks about

integrated transport across London, and our bit of that

is to make sure the IT is integrated to support that

across London.”

Exciting technologiesAs well as being keen to get real-time information

delivery up and running, Pavitt is looking to embrace

other technology around infrastructure, virtualisation

and IP networks that the organisation has not really

taken advantage of before. “We did not have a thin

client or any real volume here, for example,” says Pavitt,

“But by the time we get to next February, we’ll have a pretty traditional 70

percent profile of thin client, which is a dramatic change for any authority

like ours.”

Pavitt also points out that he is now employing a mobile strategy that

is around a thin client mobile, which is proving very exciting. “Modernisation

for the user is to enable people to do their jobs easier, to do their jobs from

more than one location, and embrace the home working and flexible working

abilities. We’ve also published a series of activities that we are going through

to enable the rebuilding of the datacentre, the new network and the IP infra-

structure behind that as well. While these technologies are well known in the

market, they excite me for an organisation like TfL because of the amazing

amount of productivity that will be enhanced more dramatically by IT sup-

porting people doing their role going forward.” �


EUI. How are the impending 2012 Olympics affecting TfL?

PP. The 2012 Olympics are affecting anybody who works in London, both in the public and in

the private sector. For us as an authority, and for me in particular, it doesn’t have a direct

impact on what we do everyday since we are providing services around the transport side. We

are currently advising members of the TfL committee about what we are doing and our

strategy, so we can try and dovetail that better, but the technologies that we have in place are

really an enhancement on what we are already planning, helping London to be more

accessible, helping us in terms of our ticket management and so on. But these are thing we

intended to do anyway, so we are simply informing Olympic committees to make sure we are

not working against each other in any way going forward.”

Q&A

“The 2012Olympics are

affecting anybodywho works inLondon, both

in the public andin the private

sector”

Transport for London:24sept 5/9/08 11:22 Page 65


E urope is well on the way to create an

interoperable railway system. However

the desire for interoperability seems to

be contradictory to the need for innovation.

Sustainable development for the railways is

hard to imagine without this innovation.

InteroperabilityInteroperability fi nds its origin in the

well-known Interoperability Directives 96/48/

EC, 2001/16/EC, 2004/50/EC and the more

recent Directive 2008/57/EC. Interoperability

is based on the so-called essential require-

ments. It is defi ned as “the ability to allow the

safe and uninterrupted traffi c at a required

level of performance. This ability depends

on all regulatory, technical and operational

conditions, which must be met in order to

satisfy the essential requirements.” Essential

requirements are related to safety, reliability

and availability, health, environmental pro-

tection and technical compatibility. From a

practical perspective it is understandable that

interoperability is often mistakenly limited to

technical compatibility. From a more general

perspective it is logical and necessary that all

the essential requirements are taken into ac-

count. The link to sustainability is established

through the essential requirement of envi-

ronmental protection. In the current situation

this is characterised by a pragmatic approach:

concrete objectives in the area of noise, vibra-

tions, electromagnetic compatibility and emis-

sion of fumes are formulated.

Harmonisation and standardisation

The requirements for interoperability

are detailed in the Technical Specifi cations

for Interoperability, or TSIs. These specifi -

cations apply to the entire Trans-European

network, both on high-speed lines and on

conventional railway lines. The TSIs will soon

cover all the railway requirements, but impor-

tant parts are already in force for the entire

network, like ERTMS/ETCS. This approach of

interoperability is based on a high degree of

standardisation and harmonisation. In order

to guarantee compatibility on the interfaces,

there is no other technical possibility then to

harmonise. And railways are all about inter-

faces. Between rail and wheel, between axle

and track gauge, between vehicle and loading

gauge, between pantograph and overhead

line, between on-board and track-side signal-

ling. The list is virtually endless. On top of

this is the ergonomics of the human-machine

interface. Adaptation of the interfaces makes

the railway work. Certifi cation of the stand-

ardised components and interoperability

constituents guarantees the interoperability.

Innovation From the above, it must be clear that the

Interoperability Directives are not meant to

stimulate innovation as such. The incentive for

innovation must come from the market and so-

ciety itself. Sustainability through innovation

is an objective that must be reached with the

legislative framework as a boundary condition,

but not because of the legislative framework.

The subsystem energy is a good example. As

long as the requirements on the interfaces are

met in terms of voltage, frequency, power, har-

monic emission, and mechanical contact with

the overhead line, every solution to realise the

functions of distributing and converting the

energy is allowed. This has made it possible

to include all the results of the development of

energy effi cient solutions for distribution and

conversion. It will support further develop-

ment in this area. New sources of power can be

introduced within the existing framework. The

limitation is given by the standardisation of the

interfaces; possibilities are created by the use

of the concept of the essential requirements as

the criterion for acceptability.

Pragmatism to sustainabilityThe pragmatic approach implies that

new developments are checked against the

existing essential requirements and not nec-

essarily against the standard, which is used

to check the traditional technical solutions.

KEMA Rail Transport Certifi cation has all the

skills and experience to assist you in your

certifi cation processes in the frame of the

Interoperability Directives, even if you want

to propose new sustainable solutions.

The current Interoperability Directive is

pragmatic where it mentions very concrete

goals and measures, but incomplete where

it leaves out the objectives related to sus-

tainability. Where in the current version of

the Interoperability Directive emission of

fumes, electromagnetic compatibility, noise

and vibrations are treated, the next revision

could spend more attention on introducing

the concept of sustainability as part of this

essential requiremen,t for instance in the

area of energy consumption and energy ef-

fi ciency, general applications of materials

and lifecycle approach. But you do not need

to wait for this improvement. The railway is

developing and KEMA Rail Transport Certi-

fi cation can assist you in the acceptance of

your developments.

Developing the rail industryIs it possible to fi nd the right balance between interoperability and harmonisation on the one hand and innovation and sustainability on the other hand? Frank Walenberg, Director of KEMA Rail Transport Certifi cation, outlines his view.

For more information please contact:Frank WalenbergDirector of KEMA Rail Transport Certifi cationP.O. Box 11 AA Arnhem, the [email protected]

ASK THE EXPERT

kema.indd 66kema.indd 66 5/9/08 11:04:145/9/08 11:04:14

KemaRail.indd 67KemaRail.indd 67 1/9/08 15:23:021/9/08 15:23:02


Everyone needs to re-think and

increase their focus on sustainabil-

ity and resource effi ciency. There are

many incentives for such change,

such as the on-going and ever more noticeable

climatic changes, market changes and revi-

sions in legislation and regulations. Half the

world’s population lives in urban areas. Seen

from a sustainability perspective, and contrary

to common belief, a city is a useful geographic

system. The city creates opportunities for ef-

fi cient and optimised solutions that reduce

environmental impact, such as the release

of greenhouse gases. A composite housing

stock, the possibility of increased residential

density, energy-effi cient transportation and

communication are some of the advantages

that cities have from a sustainability perspec-

tive. Cities also offer rich opportunities for

trading, social contacts, development of ideas,

knowledge and skills, and of course for making

a living. Regional planning is the city’s gram-

mar, and its social and economical aspects are

its fl ow and pulse. Yet to be truly sustainable,

they must be competitive, attractive and effi -

cient at the same time. One universal ambition

must be low emissions of greenhouse gases,

achieving and maintaining social welfare,

providing a solid governance base for a fair

sharing of costs and revenues, avoiding seg-

regation and releasing social potentials. With

good communications people can get to work,

to home and to leisure activities easily. Good

communications also imply that businesses

can deliver goods and services in a cost-ef-

fective manner. The reliability of the transport

system infl uences the whole society. The driv-

ing forces are often political with the objective

to reduce pollution and traffi c congestion to

control climate risks. The railway is one of

the most important means for a sustainable

transport system.

The City Line in Stockholm is a UK£1.3

billion rail-tunnel project with two railway

tracks running beneath Central Stockholm,

and is an example of a modern solution to

solve the transport problems in a big city. At

present there is enormous pressure on the

commuter train system – the carriages are

often crowded and the trains do not always

run on time. With the advent of the City Line,

travel will be far more convenient and reli-

able. The two new commuter train stations

will make it easier to change between train,

underground and bus services, which could

help to cut travel time. The new centrally

located stations also mean that commuter

trains could prove to be an attractive alterna-

tive to the underground for those people who

live in Central Stockholm.

The City Line is being built with a view

to the needs of the 2030s. The vision is that

by that time, Sweden will be well on the way

towards achieving an ecologically, socially,

culturally and economically sustainable

transport system. It will be easier to make

day trips for business purposes between

the major town and cities, and by then the

Swedish rail network will also be connected

to the rail network serving the rest of Europe

will be so developed in terms of capacity and

frequency of services that it gives people the

chance to commute to and from work over an

even greater area than at present. Further-

more, by 2030, effective rail connections

and terminals for goods will have been cre-

ated, which will improve the opportunities

for transport on the railways. The City Line

has an important role to play in this vision.

It will allow full advantage to be taken of the

investments that have already been made

in the region. The City Line is also a precon-

dition for the investments that are being

planned to improve rail traffi c in Stockholm

and with the rest of the country, for example

between Stockholm and Gothenburg, and

Stockholm and Malmoe. All investments

in improving the railway network – both

already introduced as well as planned – will

help to develop a transport system that is

sustainable in the long term and reduces the

pressure on the environment.

Sustainable transport

Eskil Sellgren is the Deputy Managing Director for WSP Sweden, mainly responsible for the WSP Civils business with around 700 employees in Sweeden

ESKIL SELLGREN

The City Line in Stockholm is a UK£1.3 billion rail-tunnel project that supports an ecologically and economically sustainable transport system.

ASK THE EXPERT

“All investments in improving the railway network will help to develop a transport system

that is sustainable in the long term and reduces the

pressure on the environment”

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HEAD TO HEAD

Fire protection on the right trackEU Infrastructure asks Roger-André Dirksmeier, Product Manager Rail Systems at FOGTEC, and Klemens Blasl, Head of Sales at AQUASYS, for their opinions on the new technologies and challenges of fi re protection concepts in the railway industry.

EUI. Fire protection concepts need to con-

sider the diffi culty of accessing the scene of

the fi re in most railway cases. How do you

approach this situation?

Klemens Blasl. Extensive fi ghting of fi re

incidents and evacuating the passengers in

transport vehicles with less space represents

a challenge to the operating staff and also to

the passengers. A fi x installed water mist fi re

suppression system, which can be activated

immediately at the recognition moment of an

incident and that fi ghts the fi re exactly where

it is detected, seems to be the perfect answer

to the question of how to approach the scene of

fi re. Furthermore, the water mist system is com-

pletely harmless to the human being as it uses

pure water, therefore, no intervention time to

start this system is needed and the water mist

immediately improves the environmental condi-

tions. This facilitates the evacuation of passen-

gers and the approach of the fi re brigade.

Roger-Andre Dirksmeier. In general, the evacu-

ation and access concepts are one of the most

important protection elements. If this could not

be realised by basic requirements or measures,

than you have to think about active measures

to help you to reach the protection goal. It de-

pends on the operation concept of the railway

vehicle and on many other parameters like the

environment or the track characteristics, but it

makes sense to implement active concepts.

EUI. What are the main challenges facing fi re

protection concepts for rolling stock and how

are you tackling these challenges?

RD. The main aim is to create solutions with

safe, comfortable and economic vehicles.

Safe transport means that an active system

is needed. It has to be checked against the

different parameters. If active systems could

help, make sense or are required they have to

be integrated in a smart way, have to realise a

KB. The main problem for technologies that

aren’t used daily is their justifi cation and there-

fore their acceptance. I remember many critical

opinions about safety belts, and later about

airbags, after their introduction into cars. Now-

adays, nobody would buy a new car without the

state of the art standard safety features, like

safety belts, airbags, antilock braking system,

etc. It takes time to accept new technologies or

their applications, but once settled in our mind

we would never want to miss them.

EUI. How do your water mist systems differen-

tiate from conventional sprinkler systems?

KB. The main advantage of a water mist

system is its effi ciency and damage reduc-

tion effect. The system sees better results for

decreasing temperature and heat radiation

by faster evaporation of the smaller water

droplets and the three dimensional effect in

the whole compartment. The low water con-

sumption compared to sprinkler systems and

therefore the low weight and small dimen-

sions of the system have even enabled the

implementation of water mist fi re fi ghting

systems in rolling stock.

RD. In a railway vehicle it is extremely important

to optimise everything regarding the weight and

the dimensions of the systems or components.

high availability and reliability with a minimum

life cycle cost. To realise this, a team of highly

skilled and specialised people with experience

in railway vehicles is necessary. At FOGTEC you

will fi nd a team of people working on rolling

stock business to solve the daily challenges

during integration of fi re protection concepts.

“The main advantage of a water mist system is its

effi ciency and damage reduction effect”

Klemens Blasl

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Klemens Blasl studied Automation

and Process Management in Austria

and collected experience in Sales and

Project Management around the world

during his career. He is Head of Sales

at AQUASYS, which has existed since

1993, and is the pioneer company in

water mist fi re fi ghting and an expert

in customer-optimised solutions.

To reduce weight and dimensions, you have

to use the water more effectively. To have the

most effective system you have to optimise the

energy transfer from the source to the medium,

in this case the fi re fi ghting medium. In the case

of a sprinkler you have big droplets, which fall

and are collected as water on the fl oor but, if

you atomise the water in really small droplets,

you generate a bigger reaction surface to have

an optimal fl ow of energy.

The result is a rapid cooling effect

around the ignition source, the surrounding

area and what is really important in regard

to the running capability. It also means new

possibilities for evacuation, running capabil-

ity and design.

EUI. In your opinion, how has the threat of

terrorism affected the industry?

RD. This depends on the country or area.

In mid-Europe, for example, there were no

effects to the vehicle design, however, in

Korea there are some infl uences in different

approval tests (especially for the fi re fi ght-

ing system) caused by terrorism activities.

The fact is, if you have events such as the

Madrid bombings, no fi re protection con-

cept can help. And it could be not our aim to

design vehicles for these events.

KB. There is no alternative to the indispensa-

ble public transport in daily life, and therefore

our obligation is that we are faster in the exist-

ing competition between security technology

and criminal effects. Such terrorist acts as

the Spanish Metro in 2004 are very diffi cult to

completely prevent, but developing technolo-

gies to protect people and property without

losing fl exibility and comfort is the industries’

main task to make the world safer.

EUI. What improvements are you currently

seeing in the transport industry regarding

fi re and safety solutions?

KB. “Until the moment that something hap-

pens, nobody wants to think in security and

protection systems.” This mentality has

changed in the last few years because of

the focus on the availability of transport/

traffic, consequential costs and economic

losses caused by accidents. I see an im-

proved concomitance and positive mutual

influence between the manufacturers of

passive fire protection, detection systems

and fire fighting systems.

RD. During the last few years we have noticed a

change in regard to fi re protection on the manu-

facturer side as well as the side of the approval

bodies. There are a lot of trains running now with

FOGTEC systems not because a fi re protection

system was required but because the system is

there to compensate other requirements, such

as, the fi re barrier doors between the wagons,

material requirements or fi re resistance of walls

between traction equipment and passengers.

The results of this are more possibilities for a

modern and open design, saving of weight, sim-

plifi cation of approval process, simplifi cation of

evacuation and fi nally, it may have positive ef-

fects on the economic balance of the project.

EUI. What do you think the future holds in

terms of safety issues on trains?

RD. Many various safety solutions are in discus-

sion or have come up, but especially diffi cult is

the discussion to use things in parallel. We cur-

rently have a good technical standard and we

have make sure that what we create does not

complicate vehicles by adding more and more

safety issues – the costs for new trains would

increase if we tried to realise all possible situa-

tions and in the end the travellers would have to

pay for this. We should destroy the great chance

of the moment for the railway industry manu-

facturers and operators to increase the signifi -

cation of railway transport in modern systems

by implementing too many new safety issues.

KB. Under the infl uence of globalisation,

people have to be more fl exible at continu-

ously increasing energy costs. People want to

be faster and more comfortable and arrive at

their destination for the cheapest price. Pas-

senger trains are supposed to be one of the

safest means of transport and to make sure

that it remains so, fi re fi ghting in railway vehi-

cles will become more important for providing

fast and punctual connections.

Roger-André Dirksmeier is Product

Manager Rail Systems at FOGTEC

Fire Protection. He joined FOGTEC to

build up the Rail Systems department

and today Rail Systems are the

market leader for innovative fi re

protection solutions in rolling stock

applications.

“To have the most effective system you have

to optimise the energy transfer from the source to the medium, in this case the fi re fi ghting medium”

Roger-André Dirksmeier

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fi gurations to meet the needs of actual traffi c

volumes. These rolling-stock concepts require

innovative platforms and modular means of

construction to be manufactured effectively.

Both require high-performance and reliable in-

terfaces. Weidmüller supports these platform

concepts with a broad range of solutions and

an extensive product portfolio. For example,

these include WF, WFF and ST-4000 series stud

terminals as well as heavy-duty connectors

from the ‘RockStar’ series. They guarantee reli-

able electrical connections up to 4000 V in con-

trol cabinets and in the junctions between the

vehicles. Aluminium die-cast enclosures from

the K-Series as well as heavy-duty connectors

from the ‘RockStar’ series are utilised in under-

fl oor assemblies where electrical connections

have to be protected from dust and water

spray. The robust but feather-weight housings

are rated to protection class IP68. The use of

pluggable terminal blocks allow complete, pre-

assembled functional units to be installed in

the driver’s cab and in door controls in seconds

and without any errors.

EUI. Deutsche Bahn AG has rated Weidmueller

as an L1 supplier. How important is this level

of recognition for you as an organisation?

DS. Being awarded L1 supplier status was very

important for Weidmüller. This supplier rating

has now been supplemented with the Inter-

national Railway Industry Standard (IRIS) cer-

tifi cate, which is the new quality standard for

the rolling stock industry. The DEKRA certifi ed

Weidmüller with an ‘above-average’ result. The

IRIS standard represents a further important

award for the company and has already been

implemented in Weidmüller’s quality manage-

ment regime. Both awards underline our com-

petence as a partner, something we have been

maintaining together with the international

railway industry for more than 50 years.

EUI. What are the current challenges in the

electrical connectivity and data industry and

how are you tackling them?

DS. Safety in rail transport is an essential re-

quirement, because the components utilised

in rail applications are constantly faced with

extreme infl uences. That is why the regulations

and guidelines are so clearly defi ned. As a part-

ner to the national and international railway in-

dustry, Weidmüller offers these technological

concepts in the fi eld of electrical connectivity.

We have adapted our components such as ter-

minal blocks, plug-in connectors, housings and

marking systems to meet the special conditions

that prevail in railway industry applications.

These include undertaking extensive tests in

our own accredited laboratory. The products

are tested according to the relevant criteria

such as resistance to vibration and shock, ther-

mal stability as well as operational lifetime and

electromagnetic compatibility.

The manufacturers of railway rolling stock

are increasingly integrating bus systems. The

CSB connector (ConCept System Bus) ensures

EUI. Technology standards in the European

rail and transport sectors have changed in

recent years, what are your thoughts on the

improvements?

DS. Low energy consumption and the result-

ing low levels of environmental pollution are

a distinguishing feature in comparison with

other means of transport. As well as the envi-

ronmentally friendly aspect that rail transport

is extremely safe is a further point in its favour.

Problematical on the other hand is the wide

variety and complexity of the technical speci-

fi cations and operating conditions that exist in

the various national railway networks. These

lead to higher costs for the construction and

operation of the infrastructure and in so doing

diminish the attractiveness of the railways.

That is why it is extremely important to create

a legal framework for Europe that supports a

uniform railway market throughout the entire

European Union that stimulates its develop-

ment. The objective is to develop technological

standards throughout Europe that will enable

the straightforward exchange of components

and part systems through to complex systems.

In addition, it is necessary to harmonise inter-

faces and basic system characteristics. This

is the only way for the internal market of the

European Union to operate smoothly.

EXECUTIVE INTERVIEW

On the right trackWith Weidmüller’s Detmar Saalmann.

safe and reliable connections in the MVB (Multi

Vehicle Bus) und WTB system (Wire Train Bus).

The CSB plug-in connector is a 360 degree

shielded module with one or four-pole signal

contacts. As you can see: Weidmüller products

are utilised in all vehicle modules that have to

be connected electrically with one another.

Together with our products we stand for inno-

vation and quality – to ensure that the railways

remain a safe and reliable means of transport.

EUI. In your opinion, what is driving the grow-

ing trend for mobility and consequently the

increasing use of modular systems?

DS. High levels of mobility are a sign of a dy-

namic industrial society – and mobility is per-

manently on the increase. This continual need

has an infl uence on future railway vehicles.

Their concepts must be designed to be ex-

tremely versatile to allow railway operators, for

example, to be able to quickly alter train con-

“High levels of mobility are a sign of a dynamic

industrial society”

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Afunding deal recently announced between the UK Government and

the Greater Manchester Authorities has opened the way for a com-

bined investment and congestion pricing package that could be-

come a blueprint for other schemes around the world. The Greater

Manchester package combines what will be one of the world’s largest and

most sophisticated congestion charging schemes with the largest public

transport investment programme ever delivered in the UK outside London.

Subject to a final consultation period, work should shortly begin on de-

livering all elements of the package. Only in the summer of 2013 –

when the large majority of the public transport investment elements

of the package will be in place – will the congestion pricing scheme

come into force. The package includes more than 20 separate initia-

tives such as extensions to the light rail network, a heavy rail invest-

ment programme and an extensive bus priority network.

“Greater Manchester’s investment and charging package can be

considered groundbreaking in that it has been designed as an inte-

grated package, targeting a clear set of economic, social and envi-

ronmental objectives, not as a series of standalone measures,” says

Lewis Atter, Director of KPMG’s Global Infrastructure & Projects

Group. “This means that the package recognises both the critical im-

portance of delivering real alternatives to the car in advance of charg-

ing being introduced and addresses the financial challenges that

doing these things in the right order represents.

“Throughout the design process, two objectives were para-

mount. Firstly, the scheme had to help promote greater growth in the

long-term by breaking the link between growth and rising congestion.

Secondly, it had to be ensured that these long-term benefits were not de-

livered at the cost of a short-term hit to the competitiveness of the local

economy or at the expense of disadvantaged or vulnerable communities.”

The scheme is promoted as a fully funded and integrated transport

package, incorporating a sophisticated but cost-effective road pricing scheme

(that is designed to send subtle rather than blunt price signals to road users

whilst also minimising running costs) alongside transformational investment

in public transport alternatives delivered in advance. Accordingly, Atter be-

lieves this could well become the blueprint for other cities around the world

looking to address the transport constraints they face.

At the heart of the Greater Manchester Passenger Transport Executive’s

(GMPTE) strategy – on which KPMG was the lead advisor – was a bid for

funding from the UK government’s Transport Innovation Fund (TIF). The TIF

represents a pool of central government funding available for transport pro-

jects that demonstrate innovation and contribute to economic growth. The

UK Government allocated UK£1.44 billion of TIF funding to GMPTE’s pack-

age. The bulk of the remainder of the package will be financed through local

borrowing against charging revenues.

“It’s widely accepted that, in common with other parts of the world, the

UK needs to overhaul its transport infrastructure and address the threat

that rising congestion poses to economic competitiveness,” continues

Atter. “Nor is it a secret that congestion charging, although potentially an

effective tool in addressing these issues, brings with it very real economic

and social challenges. What the Greater Manchester model shows is that a

package approach supported by innovative analytical and financial tech-

niques – and with the right kind of central government support – can ad-

dress these challenges. I’d be surprised if we didn’t shortly see this model

being adopted as leading practice elsewhere.” �

UK scheme shows the future for urban transport


A UK£3 billion scheme in the UK is set to redefine the way in which urban transport andcongestion pricing programmes are designed and implemented.

“The UK needs to overhaul itstransport infrastructure and addressthe threat that rising congestionposes to economic competitiveness”

CASE STUDY

A Manchester tram transports passengers through the Salford Quays area

UrbanTransport ED:24sept 5/9/08 11:23 Page 76

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IS. We have a positive experience from our road charging experiment

in Stockholm City, where we have undertaken a fully automatic conges-

tion tax in the city centre. Our experience is that the congestion has

decreased by approximately 10 percent, and acceptance from the public

is, overall, positive. However, I think that these kinds of actions must be

complemented with improvements in public transport, new trains and

buses, traffi c planning, parking places adjacent to train and bus stations

and also new infrastructure. Success demands a number of coordinated

actions in the fi eld of society and traffi c.

One additional observation on this point is that, despite the conges-

tion tax, we have seen that the volume of traffi c is increasing again slowly

due to the fact that people are now getting used to the extra expense.

EUI. This challenge of how to improve mobility while at the same time

limiting congestion and pollution is common to countries across Europe.

Are you seeing any innovative approaches in other countries that could

be adopted in Sweden? To what extent do you collaborate with national

road network agencies in other countries to establish best practices and

exchange ideas?

IS. The problems and challenges in the Swedish road transport system

are not unique to Sweden, and neither are the solutions. We have to col-

laborate with other countries to adopt their solutions, if appropriate for

us. We cannot afford to tackle all the problems and challenges ourselves,

even though we already spend signifi cant fi nancial resources on initiating

and undertaking research and development activities.

EUI. International surveys have shown that Sweden has a compara-

tively low traffi c accident rate. To what do you attribute your success

in this area?

IS. We have worked patiently on this issue, together with many partners,

and on many fronts; our work on higher traffi c safety started as early

as the 1950s in Sweden. But we still have a long way to go to reach our

vision. Today, Sweden has a high usage of safety belts, a low percentage

of drunk driving and we have improved the road infrastructure – the ad-

dition of centre guardrails on the roads is just one example of that. Fortu-

nately for us, the Swedish car fl eet consists of safe cars and Sweden has

car manufacturers that are interested in safety issues.

EUI. The number of cars on European roads has surged in recent years,

leading to increased congestion and rising pollution levels. Is this a

problem in Sweden?

IS. In some Swedish regions – mostly in the bigger cities, such as Stock-

holm and Gothenburg – we have congestion and pollution to the extent

that it causes problems. In an effort to combat this, Stockholm has a

congestion tax for the inner city zone. Congestion tax is also under dis-

cussion in Gothenburg.

We also manage different kinds of traffi c information that the

drivers can receive, both through the radio and via our traffi c man-

agement system, and provide data for navigation systems. Where

possible, we adjust the road design to maximise the capacity of the

roads and, together with municipalities, cities and other partners,

try to improve the conditions for other transportation modes such as

combination terminals for goods, and improvements for cycling and

public transportation.

The pollution levels have generally improved through the combination

of several of the above measures. From time to time, we unfortunately ex-

perience problems with high levels of particles along the roads in periods

of dense traffi c. This is mainly due to the high usage of studded tyres during

the winter months. As a result, we are working on new ways of decreas-

ing the spread of particles, as well as a reduced usage of studded tyres.

EUI. Do you think road charging is the answer to easing congestion?

What would it take in terms of infrastructure improvements to imple-

ment such a scheme? What are the benefi ts/drawbacks?

The road to successEU Infrastructure talks with Ingemar Skogö, Director General of the Swedish Road Administration, about the challenges of managing a national road network.

The value of ITSThere are various types of IT support available along main roads in

Sweden that offer support during a journey. There are also a large

number of sensors along the roads that collect traffi c data.

Electronic signsAlong roads, mainly on approaches to main cities, there are signs that

provide information about possible accidents or if there is a risk for

queuing. Some signs are used to direct and control traffi c if this is

necessary. There are signs along the roads that show road surface and


NETWORK MANAGEMENT

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tractors, consultancy fi rms and other businesses

within the construction fi eld in order to improve

and develop Sweden’s infrastructure. Therefore,

we have several collaborative projects in this area.

The major one was initiated by the Director General

of the Swedish Rail Administration and myself, and

is called FIA (FIA is a Swedish acronym that trans-

lates as ”renewal in the construction industry”).

The private sector is involved and the goal of the

FIA is to rethink construction by sharing the knowl-

edge we all have, and together renew and develop

the industry and thereby the road infrastructure.

EUI. Technological innovation has a huge role to

play in enabling better use of the transportation

infrastructure. What impact is the application of technology such as

intelligent transport systems having on the Swedish road network?

IS. ITS is a tool that can contribute to greener, safer and smarter trans-

port, and plays a key role in delivering safe, effi cient, sustainable and

seamless transport systems. Examples are through traffi c management

and traffi c control, road charging, route navigation, and in-vehicle sup-

port systems that enable lane control, speed control (ISA), provide as-

sistance at an emergency situation through automatic communication

with rescue services (eCall), and systems for collision avoidance. These

research and development activities are in many cases undertaken

within the framework of the Swedish public-private joint research pro-

gramme Intelligent Vehicle Safety Systems (IVSS).

EUI. With environmental considerations currently enjoying such a high

profi le, what is your organisation doing to promote greener, more sus-

tainable use of the road network?

IS. We take part in national and international negotiations (for instance,

in the EU), providing facts about vehicles and fuels and how their en-

vironmental qualities can be improved. We are also involved in the

discussion about taxation per kilometre by providing knowledge and

facts about the conceivable environmental benefi ts of this. The Swed-

ish Road Administration supports the business world and organisations

with knowledge and experience in order for them to develop a more sus-

tainable business. Examples are eco-cars, car pools, planning of public

transportation and eco-driving.

Around Europe and the rest of the

world, we see a lot of innovative road

infrastructure solutions that we would

like to adopt in Sweden – for example,

different solutions to solve congestion

by using the road area more effectively

and through more effective traffi c man-

agement. Examples of this include hard

shoulder running, different times for

delivery transport to use narrow roads

for unloading, ‘slot times’ and so on.

We try to follow new innovative solu-

tions around the world. Our experience

is that international networks are a valu-

able tool for collecting information and

also initiating innovative projects in cooperation with other countries.

The World Road Association (PIARC), the Nordic Association for Road and

Traffi c Association (NVF) and the Conference of European Directors of

Roads (CEDR) are valuable forums for us.

Also promising is our ERA-NET ROAD collaboration funded by the

European Commission. This collaboration has demonstrated that the

national road administrations are more or less facing the same problems

and challenges for the future, and thus we are able to jointly formulate

common research needs. The most appropriate research provider in

Europe is then contracted to undertake this research.

In Sweden, for instance, the last year has seen us examining the

importance of integrated land-use and urban planning. The urban areas

and their road networks must jointly be designed in such a way that

we achieve a transport-effi cient society – one where the importance of

demand management must be stressed. Another aspect of our research

into greenhouse gas emissions is to focus on the importance of develop-

ing energy effi cient road management and operation. After all, cars are

not the only GHG emitters.

EUI. How are you partnering with the private sector to map out the stra-

tegic development of Sweden’s road infrastructure?

IS. The Swedish Road Administration has long had an open dialogue with

representatives of the private sector, car and truck producers, transport

companies and so on. Through this we can identify their different needs

within our remit of responsibility. We also need to cooperate with con-

Automatic speed surveillanceAutomatic speed surveillance has proven to be a good

method to reduce speeds, increase road safety and reduce

environmental impact. Seven out of 10 motorists approve

of the system.

Smart traffi c signalsSome traffi c signals can manage traffi c to minimise

queues. This fl ow is based on how the traffi c situation is

at that time. Smart traffi c signals can also prioritise public

transport and emergency services at a junction and make

it easier for pedestrians to cross a busy street.

air temperature. Trials are also in progress to warn motorists if wildlife is

approaching the road.

Variable speed limitsSpeed signs that change the highest permitted speed limit depending on the

condition of the road, the number of cars on the road, visibility, etc. are being tested

at several locations in Sweden. The trial is in part to show that the motivation to

maintain speed limits increases when speed limits are based on prevailing conditions.

Finding an available parking spaceThere are signs in many cities and towns that indicate how many parking spaces

are available in a specifi c part of town.


Ingemar Skogö

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The logistics industry in Central and Eastern Europe and Russia is set to

experience substantial growth over the next five years. Datamonitor

predicts that nominal spend on logistics and storage in the region will

grow from around €184 billion in 2008 to just under €250 billion by 2012. This

will primarily be derived from fast growing domestic country-markets, as well

as increasing merchandise exports.

The overall Central and Eastern Europe (CEE) economy is estimated to

grow at an average growth rate of five percent during 2007-2012, with strong

contribution from the automotive, consumer goods, electronics and machin-

ery, retail and telecom industries. This is also paving the way forward for in-

creased development and outsourcing of contract logistics in the region.

On the whole, CEE has a relatively under-developed transportation net-

work but is attracting increasing amounts of investment flows from the EU,

local government and large foreign and domestic private players in the lo-

gistics sector. Praveen Ojha, Senior Logistics Analyst with Datamonitor, says:

“The lenient tax policies and moves for privatisation have also helped attract

a good amount of foreign direct investment funds into the region. With rising

private consumption and fast-growing external and internal trade, the CEE re-

gion has displayed high-potential for the sustained growth of the trans-

portation and logistics market.”

Infrastructure: under-developed but fast improvingRailways have become an expensive transport mode. Railway infra-

structure, monopolised by local governments, is relatively under-developed

in the region. Only 50 percent of the railway tracks are operative due to poor

investment and maintenance. Consequently, the intermodal capabilities are

limited and a majority of the gross tonnage, which could ideally be trans-

ported by rail, is being transported via trucks as road infrastructure is quite

well developed. Governments are encouraging private participation, espe-

cially in railways, to attract more foreign investments in order to improve over-

all transport infrastructure.

Maritime transport plays a major role in the transportation of bulk and

dry cargo, but is not a preferred transport mode across the region. Air transport

is still the costliest transport mode due to its efficiency and timely deliveries.

Maritime and rail transport have together lost a significant market share of 10

percent to road freight over the last decade. However, in Poland, Bulgaria and

Latvia there has been an increase in rail freight volumes over the same period.

Another problem is the congestion of logistics networks and warehous-

ing in and around the major trading centres. As the manufacturing and dis-

tribution activity is concentrated in a few major centres (Prague, Warsaw,

Budapest, Bucharest, Sofia, Poznan, Kiev, Moscow and St Petersburg), other

cities in CEE need to develop as distribution and logistics hubs in the coming

five years. This will create new opportunities to leverage the existing space,

labour and logistics infrastructure and result in the creation of new transport

networks, distribution and warehousing facilities.

Small but fast-growing contract logistics marketThe contract logistics market is still under-developed due to the highly

fragmented nature of both the freight forwarding industry and the road freight

industry. With the rapidly growing economy, an ever-expanding manufactur-

ing industry, increased international trade and foreign investments in trans-

port infrastructure, this sector is set to undergo a positive transition over the

next five years.

The small number of large logistics service providers (LSPs) in the CEE

region is steadily increasing, especially in the larger markets of the Czech

Republic, Hungary, Poland and Russia. Both large local and foreign LSPs are

actively pursuing the outsourced logistics business (especially in the auto-

motive, electronics, machinery and retail industry verticals) and are thus the

major contributors to the contract logistics market in the region. These play-

ers continue to invest in both their local divisions as well as an expanded port-

folio of logistics services.

Logistics services providers are in for a boostDatamonitor expects third-party logistics services to receive a boost due

to the increased focus on contract logistics activities, both from the local

strategic partnerships as well as consumer industries such as automotive,

electronics, machinery and retail, among others.

The CEE region is also experiencing high demand for warehousing of

agricultural and perishable products. However, inventory management, sup-

ply chain management consultancy and IT solutions are some key areas of

greater growth in the future. Going forward, all this, along with the EU acces-

sion of the region, will result in an increasing number of international freight

forwarders and large LSPs scaling-up their investments and activities to ex-

ploit the logistics outsourcing market, particularly in the Czech Republic,

Hungary, Poland and Russia.

“Until recently, the major weaknesses of the CEE countries were their

economic instability and low quality of overall transport infrastructure,” says

Ojha. “However, following the EU accession for most CEE countries (and im-

minent accession for others), improved fiscal management by the govern-

ments and increased mobilisation of capital (especially foreign direct

investments) for infrastructure investment has helped in successfully tack-

ling these challenges.” �

CEE: the next logistics hotspot?


A fast-improving transport infrastructure could help the Central and EasternEuropean region become a hub for the logistics industry.

TRANSPORT FOCUS

“With rising private consumption and fast-growing external and internal trade, the CEEregion has displayed high-potential for thesustained growth of the transportation andlogistics market”

logistics ed:24sept 5/9/08 11:15 Page 80

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While the mature economies in Europe move towards

creating integrated transport policies, emerg-

ing Eastern European countries are searching for

ways to strengthen their transport infrastructure

through technology. Lower operating costs have

created business opportunities within this region and its geo-

graphical proximity to other eastern markets has made it a prime

transport corridor. Due to an increase in traffic congestion and

growing road management costs, road building and development

have now become critical needs in the region, forcing Government

Ministries to find ways to finance these projects. As a result, charg-

ing transporters for using main roadways has become an impor-

tant source of funding development. With road transport growing

almost 20 percent each year, road toll charges offer a significant,

constant source of finance for the construction and maintenance of

road infrastructure.

In the last two years, efforts have been aided by technological

advancements that revolutionised road user charging in Western

Europe. Similar developments are surfacing within Eastern Europe,

giving rise to the expectation that every country in Eastern Europe

will have a sophisticated road user charging system in place by 2013.

An evolving marketDue to the depth of government involvement in the sector,

tolling in Europe is heavily dominated by political goals. Although

technological innovation was often not encouraged, countries like

Germany, Austria and Switzerland developed highly sophisticated

tolling systems. As a result of this, the market has been forced to

shift from manual and automatic tolling booths to satellite and

microwave-based electronic systems. With the success of satellite-

based tolling in Germany, Western Europe is likely to see the spread

of this system in the near future. But as the countries of Eastern

Europe are in various stages of infrastructural development, there

has been a lopsided upgrading of tolling systems within this region.

For example, countries such as Poland and Hungary have rolled-out

tenders in order to select more technologically advanced systems,

while countries like Lithuania are still operating manual and auto-

matic ‘vignette’ sticker systems.

However, f igures show that electronic toll collection systems

currently dominate the European road user charging market, hold-

ing 84 percent of total road toll revenues across the region. Market

movements also indicate that, following the success of the Czech

Republic’s call for tender to install microwave-based tolling on

its roadways, this technology is likely to be adopted in Eastern

Europe on a large scale in the coming years – especially as these

states are heavily influenced by system choices made in neigh-

bouring countries.

Nevertheless, the success of satellite-based systems in Germany

has prepared the European market for further technological growth. As

more sophisticated systems are adopted worldwide, Eastern Europe

will be forced to keep up. The growth of technologically advanced toll-

ing systems is being driven by efforts to achieve Europe-wide interop-

erability in tolling, which meets standardisation requirements.

TECHNO-TOLLING IN EASTERN EUROPEMalavika Srinath, Research Analyst at Frost & Sullivan, assesses the dynamic rise of road user charging across Eastern Europe.

ANALYST VIEWPOINT

ROAD CHARGING.indd 82ROAD CHARGING.indd 82 5/9/08 11:05:115/9/08 11:05:11


tions. The road user charging market in Eastern Europe has already

begun to see an infl ux of systems providers and telecom operators,

driven by potential investment opportunities. Increasing private

investments will serve as sources of fi nance for governments,

enabling them to focus efforts on other developmental measures.

Future directives will begin to address the enforcement of sophis-

ticated charging systems, and the focus will shift towards adapting

this framework to refl ect both internal and external costs. Compli-

ance with the principles of both environmental and developmental

sustainability will become key.

Today, most road charges in Eastern Europe are levied only on

heavy vehicles, but charges have already begun to fi lter down to car

users. A case in point is the congestion charge applied on vehicles

within cities such as Warsaw. More countries in Eastern Europe will

begin to see such developments, as environmental wellbeing be-

comes critically important.

Forecast for market developmentWith more states entering the European Union, the demarcation

between the East and West of Europe will begin to diminish. Although

technologically – and even economically – there are still signifi cant

differences between the two regions, a common transport policy

will hugely aid development. United in their purpose, all countries in

Europe will work towards building an interoperable, environmentally

sound transportation policy. Sustainable mobility of freight will also

depend on developing a multimodal transport network, and the future

is likely to see an increased use of rail and waterways across Europe

as road toll charges become higher.

Nevertheless, the market will continue to witness signifi cant

technological advancements in road toll systems. On urban and inter-

urban roads, congestion charging maintains its dominant position as

more cities enter the scheme. This will be supported by the develop-

ment of advanced traffi c management systems and traffi c information

systems such as variable message signs, in order to manage road

congestion within urban areas better.

In Eastern Europe, transport ministries will continue to welcome

private investment in the form of road concessions and build-

operate-transfer projects to support the development of roadways.

Poland, Hungary and the Czech Republic currently offer the most

attractive opportunities for investment in the road tolling market –

especially as over 50 percent of traffi c from new member states into

Western Europe comes from these three countries. Roads connect-

ing Russia to Europe are also likely to be high road revenue earners

for players in the market.

As traffi c begins to move east, the developing countries in the

Eastern European region will begin to play pivotal roles in the expan-

sion of an all-European transport network. It is therefore inevitable

that sophisticated technology will become the backbone of road toll-

ing systems in this region.

This article is based on Frost & Sullivan’s research titled Strategic Analysis of the Road User Charging Markets in Eastern Europe, published in February 2006. For further information, please contact: Michael Banks, Corporate Communications Executive, on +44 (0) 20 7915 7876 or [email protected].

Efforts towards interoperability Recent years have witnessed the issuing of several EU directives

aimed at creating an interoperable tolling system throughout the

European region.

The CEN/TC 278 standard was one of the earliest initiatives

within this area, and the preliminary standard was defi ned as early

as 1991. The Eurovignette Directive followed in 1996, introduced to

limit problems within road freight caused by the existence of different

methods and levels of charging in different countries. Subsequently,

a directive issued in July 2003 continued to focus on interoperability,

prescribing the conditions necessary to put such systems in place

at the earliest in all European countries. But despite such govern-

mental efforts, the problem remains unsolved, primarily due to the

differing stages of infrastructural development in the countries of

Eastern Europe. Some are still unsure of the wisdom of investing

large amounts to upgrade their tolling systems.

However, trends indicate that this is likely to change. With the

launch of the European satellite Galileo in 2008, it is hoped that sat-

ellite-based tolling will alleviate the problem of non-interoperable

systems. Satellite systems will also drive the amalgamation of busi-

ness processes, information technology and mobile communica-

“The success of satellite-based

systems in Germany has prepared the

European market for further technological

growth”

ROAD CHARGING.indd 83ROAD CHARGING.indd 83 5/9/08 11:05:165/9/08 11:05:16

Fraport is among the leading groups of companies in the inter-

national airport business, operating some of the busiest airports

around the world. As an experienced airport manager, Fraport

is looking to modernise and expand Frankfurt Airport, in partic-

ular the infrastructure to the north of the airport, incorporating

a fourth runway and a third terminal. Furthermore, Fraport will implement

continuous measures to generate further retail space and increase real es-

tate at the airport, creating an ‘Airport City’ – a first class service for mobil-

ity, shopping, events and real estate. “Because of its multimodal

transportation links and outstanding strategic location, Frankfurt has all

the requirements to be an attractive airport city,” explains Dr Wilhelm

Bender, CEO of Fraport. “The underlying vision is a world that combines

travel, work, living and relaxation.” The focus for the project is on non-avi-

ation development and all new areas of development will be part of

Frankfurt Airport City, including the Monchhof Site, Airrail Center Frankfurt

and Gateway Gardens. “The concept is focused on Frankfurt Airport be-

cause it is our hub and therefore the base for this idea, but of course we

hope to pass on our experience within the group and try to export the idea

to the other major airports we are operating.”

In January 2008, Fraport was given the green light to build a fourth run-

way and a third terminal. Bender explains that construction work is ex-

pected to start in 2009 after a ruling of the administrative court, and that

the new runway, for aircraft landings only, will be in operation for the win-

ter 2011 timetable. “Furthermore, additional capacities for aircraft handling

have to be built to cope with the predicted growth of aircraft movements

and passengers at Frankfurt Airport by 2020,” explains Bender. Figures are

expected to rise from about 500,000 to cover 700,000 movements per

annum, with the number of passenger increasing over 50 percent from 54

to 88 million.

“The major challenge of our expansion, besides meeting the target

costs and being on schedule, will be to organise the construction activities

in a way that minimises negative effects on current airport services and air

traffic operation,” says Bender. “And, finally, there will be the challenge to

integrate the increasing air traffic volumes into daily airport operations and

services.”

A primary consideration for operators of infrastructure projects is how

to mitigate any impacts on the local environment, and Fraport is no differ-

ent. The company’s concept for renovation of infrastructure and for con-


Fraport AG is the owner and operator of Frankfurt Airport, one of the largestand most efficient air travel hubs in the world. In an exclusive interview withEU Infrastructure, Fraport CEO Dr Wilhelm Bender discusses sustainability,infrastructure challenges and future growth plans.

COVER STORY

FRAPORT AG:24sept 5/9/08 10:55 Page 84

struction of new buildings is based on the careful

use of natural resources in a cost-effective way.

“Our main objectives are using less drinking water

and enhancing technical standards, such as ener-

gy consumption and emissions, on airport

grounds,” says Bender. Other examples include

new water pipelines in all restrooms and the use

of recycled water for washing vehicles.

Expansion and development of aircraft noise

are the greatest environmental problems for air-

ports, and this also applies to Frankfurt Airport,

which is located in a densely populated area and

features high traffic volumes. While Fraport give

maximum priority to fighting aircraft noise, they

can only indirectly influence aircraft noise nui-

sance. However, the future development of aircraft

noise impact resulting from airport expansion is a

core issue for all involved, and Fraport is pursuing

a whole range of measures to effectively reduce

and avoid aircraft noise, such as the operation of

quieter aircraft, a noise-related charging system, minimum-noise approach

and departure routes and supporting passive noise abatement measures.

Addressing climate change issues is another key aim. “Our plan is

to decrease CO2 emissions by 30 percent, per traffic unit until 2020, and

we are planning a geothermic design for the new Terminal 3.”

GrowthHowever, while planning a decrease for emissions, Frankfurt Airport

recorded noticeable growth in the first half of 2008, up more than 2.2 per-

cent on the same period last year. “This growth rate is achieved despite ex-

tremely limited runway capacity,” says Bender. Short haul traffic is currently

being superseded by long haul/intercontinental flights, with 40 percent of

flights currently intercontinental, an increase of three percent on the previ-

ous year. “Since international flights are conducted with larger aircraft,

more passengers can be transported despite a stagnation in aircraft move-

ments. The loss of some short haul connections, such as Frankfurt-Cologne,

are due to Frankfurt Airport’s unique transport

connections: being in the centre of Germany’s

high-speed train network system offers

convenient connections by rail.”

More long haul flights also means

more transfer traffic, and numerous ex-

pansion projects will contribute to an

even more efficient and convenient pas-

senger experience. New two-level board-

ing gates, remodelled state-of-the-art

infrastructure, fascinating retail outlets

and unique services will secure passen-

ger satisfaction and passenger growth

up to 2011 before the fourth runway is

complete. “During 2011 our new runway

will be in operation and the current air-

side capacity bottleneck will disappear,”

explains Bender. “With our third terminal

as well as our brand new and competi-

tive airport services, we are quite confi-

dent about achieving future growth.”

Other significant infrastructure pro-

jects include the Airrail Center and the A380 maintenance base. The Airrail

Centre is an innovative building, 660 metres in length and up to 65 metres

in width, situated directly above the airport’s ICE high-speed railway sta-

tion, as a unique interface between rail, road and air transport. The centre

will be opened in 2010, in order to serve the needs of discerning office

users, providing 94,500 metres squared of office space, 34,500 metres

squared of hotel space and more.

While Frankfurt Airport already has docking positions for the A380 su-

perjumbo, the maintenance base is under construction. Lufthansa Technik

inaugurated the first section of the new A380 maintenance hangar in

January 2007, but the entire hangar system will not be completed until

2015. Lufthansa is investing around €150 million in the new maintenance

base, which will have capacity for four A380s and will be Europe’s largest

aircraft maintenance facility.

As well as a fourth runway and a third terminal, Fraport plans to in-

crease the duty free space at Frankfurt and drive retail revenues up by

2012. Airport retail is an important revenue generator at airports world-

wide, and passengers have come to expect, aside from


PROFILE: Frankfurt Airport• Passengers per year: 54.2 million in 2007

• Freight per year: 2.1 million metric tons in 2007

• Flight movements per year: 492,569 in 2007

• More than 300 destinations in 109 countries

• 1250 takeoffs and landings daily

• 386 check-in counters

• Three runways, each 4000m long

• 70,000 employees

• Direct connection to German Rail with over 170

trains daily at the airport’s long-distance train

station and 218 trains daily at the regional station

Wilhelm Bender


which must be in line with the market,” he says. “The achievement of

competitive airport charges is an ongoing process in which both sides

have to consider conflicting positions to ensure sustained and benefi-

cial co-operation.”

In spite of intense competition, Bender is working to ensure that

Fraport becomes one of the leading companies in the international airport

management business, and is preparing for the increase in air travel de-

mand with its investment projects. “Our expansion programme will con-

tribute enormously to the strategic development of the company, and a

large number of our expansion projects will ensure capacity growth and

higher location attractiveness,” he says. “Airport expansion projects in line

with market and competition requirements have their price, and it is there-

fore of particular importance to implement measures for clear cost struc-

tures ensuring that there is no threat to the success of Frankfurt Airport in

the long-term.” �

smooth operations and processes, a decent shopping space. Fraport will

be expanding the shopping floor space from 16,000 square meters in

2007, to 30,000 square meters by 2012. As a result Bender is expecting

revenues to jump from €2.69 per passenger in 2007, to €4.00 in 2012.

“The challenge, of course, is finding the perfect mix of shop operators

for our customers, and we will be closely co-operating with the airlines

to attract a high number of customers to our shopping areas and mar-

ketplaces,” says Bender.

Future focusBender believes that no other industrial sector will grow as strong

and fast as air traffic. “We agree with the experts forecasting that the in-

ternational passenger volume will double by 2020,” he explains. “This

is a pleasant outlook for airport operators worldwide, but at the same

time this presents one of the biggest challenges our industry will have

to cope with in the future, particularly for the big hubs, which bundle

streams of passengers, distribute and co-ordinate them.” Bender be-

lieves that many big hubs are currently operating at their capacity limits

and consequently only those airports who have prepared themselves for

the increasing demand and generated the capacity need well in advance

will be able to cope with the immense traffic growth. “Besides the ca-

pacity issue, the airline industry will continue their dialogue about costs,


Forecast 2020 Intraplan Research Institute worked with the latest data available on

current traffic volume to forecast the development of air traffic demand

at Frankfurt Airport until the year 2020. The forecast is based on the

assumption that the airport is expanded as expected. Based on these

premises, air traffic at Frankfurt Airport is expected to grow further:

• While in 2005 some 52 million passengers used the airport, this

number is anticipated to grow to 88.3 million in the year 2020,

which corresponds to an annual passenger growth of 3.5 percent

• Cargo and mail tonnage carried will increase by more than 70

percent to a total of 3.16 million metric tons in 2020

• Demand for flight movements is expected to rise to about 700,000

movements per year in 2020 from 490,000 movements in 2005

• About half of all passengers at Frankfurt Airport are transfers,

and according to the forecast, this will not change in the future

In addition to the new runway, terminal and long-term expansions, Fraport is also working on anumber of medium and short-term projects toincrease capacity at Frankfurt Airport, including:

New surface movement control systemsFor further improving the control and co-ordination of airport ground

movements, Fraport is planning to implement the TACSYS taxi and

control system, which allows for real-time location and identification of

aircraft as well as a navigation and guidance system for all vehicles.

Terminal capacities expandedOver the past few years, Fraport has continually optimised Frankfurt

Airport’s infrastructure – investments in modernisation projects at

Terminal 1 alone have amounted to over a €500,000 billion in the last

few years.

New Pier A0Fraport is planning to build a new passenger pier to extend Terminal 1

further westward by 2012 to accommodate the new Airbus A380 and

Boeing 747-8 aircraft ordered by Lufthansa. The 790-metre-long pier

will comprise of about 160,000 square metres and will have capacity

for up to six million passengers per year. Construction is scheduled to

start in the third quarter of 2008.

New design of Pier BThe new deign of Pier B in Terminal 1 was implemented in January

2008 in order to serve the new EU security regulations effective 2009

regarding the separation of arriving and departing passengers. The

new design will feature a new lounge, retail and functional areas as

well as three new gate positions remodelled to enable efficient

boarding of the new A380 aircraft with two different levels. Passengers

will experience more security, comfort and quicker handling as a result

of improved service, guidance and baggage removal. Upon completion

in summer 2011, the remodelled terminal is expected to serve

approximately 10 million passengers annually.

INFRASTRUCTURE OPTIMISATION


Deerns.indd Sec1:85Deerns.indd Sec1:85 1/9/08 15:20:161/9/08 15:20:16

what is happening. In the last six months, 24 airlines went bust. The

industry sent a very strong message: we are in constant crisis and

change needs to happen.

It is clear what must happen. Governments must stop crazy taxa-

tion, regulate monopolies effectively, ensure that the cost of energy

refl ects its true value, fi x the infrastructure and change the rules of

the game so that airlines have the commercial tools to fi ght crises.

Simplifying the businessFour years ago, in the wake of SARS, September 11, war crises and

the start of high oil prices, the industry’s CEOs mandated IATA to lead

an industry IT revolution. We took up the challenge, defi ned a vision,

developed a strategy and set targets. This became our Simplifying

the Business programme with goals to cut US$6.5 billion in costs and

improve convenience.

The headline project was 100 percent e-ticketing. When we start-

ed, many thought it an impossible dream. We put 150 experts on the

case, we changed national legislation (the last in CIS) and we worked

alongside our members. On 1 June, with a great global team effort and

strong support, we achieved an important milestone – 100 percent e-

ticketing and US$3 billion in cost savings.

Progress on our other projects is also strong. Common use self-

service (CUSS) is available at 94 airports around the world, 135 air-

lines are using 2D bar codes for their boarding passes and e-freight is

operational at six locations with eight more by year-end.

What have we learned? The fi rst lesson is that an industry-wide

approach to IT systems can deliver enormous value. The second

lesson is that our customers don’t care about process. They value

convenience. An IATA survey showed that of the 70 percent of trav-

ellers who experienced self-service check-in, 54 percent liked it –

and wanted more options. By the end of this year, IATA will build

business cases for self-service options in baggage self-tagging,

automated document checks, kiosks to handle irregular operations,

self-boarding and mishandled baggage reporting. The goal is to

make technology work even harder, to create an even more conven-

ient travel experience and cut costs.

RFID and baggageRFID was part of the Simplifying the Business programme. Air-

lines handle 2.25 billion bags a year – a number that is growing quickly

as security hassles force more bags into the hold. We are 98 percent

accurate, but two percent of bags are mishandled and 48 million cus-

tomers disappointed each year. The service recovery cost is US$3.8

billion. We thought RFID was the solution. Research showed it would

only solve 20 percent of the problem. The potential savings did not

justify an industry mandate. But don’t write off RFID completely. The

next generation of aircraft will be built with RFID tagged parts to make

maintenance safer and cheaper. And IATA continues to look at RFID

applications for catering equipment, unit loading devices and service

items. Our target is to be ready to take advantage of RFID as soon as

the business case justifi es it.

In the meantime, we are taking a broader approach to the baggage

problem. IATA is developing a toolkit of solutions including passenger

The industry is in crisis. With oil at US$130 a barrel, fuel is

now 34 percent of costs. In 2007, the bill was US$136 billion.

And if oil averages US$107 – the consensus forecast – the

2008 bill will be US$176 billion and losses will be US$2.3

billion. And that’s the optimistic forecast. If oil stays at

US$135, losses will be US$6.1 billion. Over the next 12 months, that

would be an added fuel burden of US$99 billion. Alone this is a stag-

gering number. But we cannot forget the US credit crunch. Traffi c is

slowing in all parts of the world. Last year growth was six percent. This

year we may achieve four percent.

Diffi cult decisions on capacity and aircraft deliveries are being

made. It’s a perfect storm of increasing costs and falling demand.

IATA’s US$315 billion settlement system gives us a unique view on

TECHNOLOGY TO THE RESCUEGiovanni Bisignani, CEO of the International Air Transport Association (IATA), explains why IT is crucial to the future of the aviation industry.


IATA Ed P88,90.indd Sec1:88IATA Ed P88,90.indd Sec1:88 5/9/08 11:35:525/9/08 11:35:52

Starport.indd 87Starport.indd 87 1/9/08 15:25:221/9/08 15:25:22


Second, we need to push governments much harder to move for-

ward with a Single European Sky and NextGen so that we can take

advantage of the technology already on the aircraft. And third, we

need global harmonisation. The patchwork of air traffi c management

(ATM) requirements around the world means that we do not always fl y

with optimum conditions and we carry extra

IT kit to cope with the differences. We are a

global industry. The infrastructure must be

globally harmonised, in line with the Global

ATM roadmap.

The IT investments to build more effi cient

businesses must also help build green busi-

nesses. Fortunately, the two are aligned. Look

at data centres. On average only 15 percent of capacity is used but ven-

tilation, cooling and power is supplied for 100 percent – all the time.

CIOs will need to look much more closely at virtualisation to op-

timise operations and achieve cost and environmental benefi ts. The

same is true for the management of networks of personal computers,

automatic power-off at night, and extending the life and recycling of

equipment. These must also be factored into the decision-making pa-

rameters. As part of the next stage of our environment work, IATA will

develop guidance on Green Business best practices.

A changing worldThe years since 2001 have challenged and re-shaped the industry.

The oil crisis we face today with the potential of US$99 billion added

to our fuel over the next year will bring even more massive change.

Airline industry CIOs will be stretched as never before to direct ef-

fective cost reduction and identify new revenue opportunities. The

determining factor of those airlines who survive to 2010 and those

who don’t could be the strength of their IT capabilities.

education on packing and labelling, more effective hub management

and stronger labels that survive humid conditions. We will work directly

with airports around the world to implement the best solutions locally.

To build an effective toolkit we need data. Delta, Emirates, LAN

and Lufthansa are helping us launch the programme, and I encour-

age all airlines to share their data so we all can benefi t. Our goal is to

launch this by year-end so quick decisions and action are needed.

SecurityIT can also have an impact on process solutions beyond our control.

Look at the unco-ordinated security mess. We are more secure than in

2001, but at what cost? Since 2001, airlines and their customers paid at

least US$30 billion in security. We get more frustration than value. Why?

Because fear drives decisions, the infrastructure cannot cope, govern-

ments are not co-operating and nobody is taking leadership.

Passengers suffer a maze of duplication, bureaucracy and hassle.

And CIOs suffer constant demands for reprogramming to deliver the

same advanced passenger information (API) data in different formats

to government agencies, often within the same department. It costs

US$50,000 for each data element changed in an API message. In total,

API costs the industry over US$100 million every year. The irresponsi-

ble US exit proposals will outsource more data collection to airlines.

This time it’s fi ngerprints and the potential cost is in the billions.

We are aligned with governments in wanting an even more secure

industry, but we need some common sense. The IATA-led Simplifying

Passenger Travel project is a solution to make security effective, ef-

fi cient and convenient. The technologies are not science fi ction. Mil-

limetre wave, backscatter and biometrics are

available today. Already many governments

issue biometric passports. Now they need to

start using them.

EnvironmentUS$130 oil makes fuel saving critical to

survival and gives airlines the biggest incen-

tive of any industry to improve environmental performance. Even

before the crisis, our vision set a benchmark for other industries to

achieve carbon neutral growth on the way to a carbon-free future. To

achieve this, we have mapped out a four pillar strategy: invest in new

technology, operate effi cient infrastructure, fl y planes effectively and

apply positive economic measures such as fair, global and effective

emissions trading, investment in bio-fuel research, tax credits for re-

fl eeting and so on.

In April, IATA led a group of top industry CEOs from Boeing, Airbus,

Embraer, Bombardier, Rolls Royce, GE, Pratt & Whitney and CFM to

make this strategy an industry commitment. IT has a big role to play.

First the big picture. In 2007, IATA saved 10.5 million tonnes of CO2.

Our Green Teams worked with airlines on best practice, and we short-

ened 395 routes and the fuel saved went straight to the bottom line

– US$2.1 billion. But we must do much more. First, more effective fl ight

planning systems are needed. To manage and make the most of these

developments, we expect system providers to ensure their software

optimises fuel use and takes advantage of every improved routing.

“CIOs will be stretched as never before to direct effective cost reduction and identify new revenue opportunities”

Giovanni Bisignani

IATA Ed P88,90.indd Sec2:90IATA Ed P88,90.indd Sec2:90 5/9/08 11:35:545/9/08 11:35:54

Naco.indd 89Naco.indd 89 1/9/08 15:23:441/9/08 15:23:44

Environmentally friendly flight starts in-ground

Already in-ground at Airports in• Stockholm • Oslo • Copenhagen • Barcelona

• Amsterdam • Lyon • Jeddah • Hyderabad

• Bangkok • Hong Kong • Dubai • Abu Dhabi

• Riyadh • Muscat • Jordan •

• Ground Power • Preconditioned Air • Potable Water • Lavatory Servicing • Jet Fuel

COMBIBOX AD2:euro 5/9/08 09:15 Page 92

The conceptThe Combibox in-ground concept is centralized generatingunits with underground distribution to pits optimally posi-tioned on the apron near the aircraft servicing points

Environmentally friendlyReplacing old diesel driven ground support equipment andjet fuel powered APU usage is essential in creating theeco-friendly airport of the future. When compared toAircraft Auxiliary Power Unit (APU) the reduction in CO2 is94% and compared to diesel powered GPU the reductionis 70% for ground power alone.

Reduced costsThe Combibox in-ground system reduces the costly fuelconsumption of diesel driven support equipment and theuse of jet fuel consuming APU. Also less man power andtime is needed to perform the ground support services.

Increased safety with a clean apronThe removal of service vehicles from the apron reduces therisk of collision between aircraft and service vehicles.Less vehicles, less congestion.

Increased capacity with shorter turnaround timesA complete and integrated in-ground system reduces wait-ing times, frees up space and optimises delivery therebyreducing turnaround time. The airport will gain fromincreased capacity.

Combibox Systems, Virkesvagen 19,12030 Stockholm, Sweden

Telephone: +466117635Email: [email protected]: www.combibox.com

COMBIBOX AD2:euro 5/9/08 09:15 Page 93

Sita.indd 92Sita.indd 92 1/9/08 15:25:091/9/08 15:25:09


Today’s air transport industry (ATI) is the

most interconnected, massively interde-

pendent business on earth, comprising

some 2000 airlines operating a fleet of 23,000

aircraft serving close to 4000 airports through a

global route network spanning several million

kilometres. With passenger numbers and cargo

volumes continuing to grow, existing airports

need to be upgraded and expanded and new air-

ports need to be built. But for anyone planning

to build or upgrade an airport, or simply manage

an existing airport, co-ordinating operations and

simplifying processes while delivering better

service to a broad range of customers is a huge

challenge. That’s where SITA can help.

As the specialist provider of integrated IT

business solutions and communication services

for the world’s air transport industry, SITA has

been building on a strong heritage of innovation

for almost 60 years – and in 2007, some 600 mil-

lion passengers worldwide checked in using

SITA systems.

Master system integration Today, SITA is bringing its unrivalled air

transport know how and expertise to deliver

master system integration (MSI) to airport own-

ers, easing complexity and enabling better and

more efficient airports to be built, upgraded, ex-

panded or operated.

The first step is to understand an airport’s

requirements, and SITA has a proven track

record in not just listening to customers’ needs

but in delivering high-quality systems that not

only exceed expectations but also come in con-

sistently on time and on budget.

SITA has worked successfully on major air-

port IT infrastructure projects around the world,

from North and South America to Western

Europe, Eastern Europe and the Middle East.

SITA also has a positive track record in en-

gagements with multiple entities such as in-

vestors, operators, construction companies and

consultants, and partners with them to deliver

technical expertise and thereby reduce their ex-

posure to risk.

SITA engages with airports on various dif-

ferent levels, from the initial development

through to airport operations and management,

and finally new business development.

SITA’s MSI is a fully-comprehensive offering

to airports, covering not just products, services,

solutions and technologies, but people as well.

With decades of specialised aviation experi-

ence, SITA understands everything that exists

in the market place today and what’s up and

coming too – and uses its know how to identi-

fy products and solutions which complement

its own offerings. When it is cost-effective, SITA

also acquires companies that have comple-

mentary products, in order to expand its capa-

bilities and reduce the cost of the bundled

packages it offers customers.

A number of high-profile, as well as medi-

um-sized airports, have come to SITA for out-

sourcing – and indeed, SITA has been working

Airport IT infrastructure: the beating heartof every modern airportSITA has been providing IT solutions in airports since 1949. Today, it works closelywith airports all around the world, reducing the total cost of ownership of their ITportfolio while delivering the maximum benefits of technological innovation.

INDUSTRY INSIGHT

Outsourcing with SITA combines:

• Unparalleled industry knowledge

and expertise – and a proven

track record in outsourcing with

partners such as Düsseldorf

Airport

• An innovative and well-articulated

vision of the airports of tomorrow,

positioning IT as a key business

enabler and a vital commercial

asset

• An integrated end-to-end airport

portfolio that delivers SITA’s

vision of the future while

immediately delivering

efficiencies and new revenue

generation opportunities

• Innovative community-focused

solutions that offer the air

transport industry greater cost-

effectiveness – anywhere in the

world

• Experience in multiple

outsourcing and partnership

models to address customers’

business challenges and

objectives

• Local, regional and global

availability

• A unique position – SITA is owned

by the ATI community, with the

SITA Board comprising

shareholders and customers from

across the air transport industry

JEFF AMIRI

OUTSOURCING

with airports in IT outsourcing partnerships

since long before the term ‘outsourcing’ was

even coined. �

“SITA has been building on astrong heritage of innovationfor almost 60 years”

SITA ED:24sept 5/9/08 11:20 Page 95


aspects technology can help. However, it will

never be the only thing we have to deploy to pre-

vent unauthorised access or people bringing pro-

hibited articles on board. There’s always a human

factor involved. For instance, technology has to be

used by screening personnel, so we have to look

at how we can provide technology in the right

places that complements the skills of the screen-

ers. At Schiphol Airport, for example, we have

jointly deployed innovative body scanner tech-

nology for speeding up the passenger screening

process, and in that sense it’s a very important

layer of security – but it is just one layer.

EUI. And how do you ensure that the technologies

you as an airline are integrating dovetail with the

technologies that the airport itself is integrating?

BS. Active millimetre wave technology is a good

example of the collaboration process. The airport

had a plan to introduce this technology, and they

proposed that KLM run a pilot with our cockpit and

cabin crew to see what the results were like re-

garding detection of prohibited articles, and there

were also some privacy and health concerns that

needed to be addressed. So we spent many hours

discussing how to use this technology and how to

build up processes around it. And after the pilot

was successful and we got approval for the use of

this technology by the Cockpit and Crew

Association, the airport decided to use millimetre

wave scans in the passenger process.

EUI. How have you seen the issue of aviation se-

curity intensify over the past 10 years and what

has it meant for your airline?

BS. Clearly, aviation security has always been a big

focus for us, and this has only intensified in recent

years. Obviously, working for KLM I cannot speak

for the airports (although there is a good deal of

co-operation between us and them because we

have to consult each other about measures pro-

posed by the Civil Aviation Authority), but we have

an extensive corporate security department now

that is geared towards preparing for implementa-

tion of those and other measures. We have a multi-

layered security system, which is very complex

and involves a good deal of co-operation between

the airlines and the airports.

EUI. What does this involve from a security

planning perspective?

BS. There is a clear division in terms of obligations

for the airports and the airlines. Passenger screen-

ing, hand luggage screening and package screen-

ing for passengers are requirements for the airport

security staff, whereas we have responsibility for

securing aircraft, doing cabin security checks and

searches, and cargo security. To have all the

processes run smoothly there needs to be much

consultation and discussion about how to manage

all these processes. The ultimate goal is that se-

curity will have a minimum impact on passengers

in terms of delays and hassle.

EUI. I appreciate that you can’t speak for the air-

ports, but many of the operations you describ

are actually dependent on close co-operation

with the airport itself – for instance, securing

the physical security of the aircraft. How have

you addressed this challenge?

BS. For that we have specialists who are involved

in those processes that take place on the apron –

the tarmac around the airplane. We have a system

of access controls that are conducted by the cabin

and corporate crew, and sometimes employees of

the maintenance department. Access to the air-

port itself is the responsibility of the airport, but

our KLM cargo premises are guarded by airline

personnel. And of course, we have the obligation

to do cabin security checks in the aircraft, per-

formed by our crew in every aircraft for every de-

parting flight in Europe.

EUI. What role will technology play in tightening

security around the planes and around cargo se-

curity? Are there any key technologies that you

think will have a significant role to play in im-

proving security within that environment?

BS. I think there’s a major role for technology in

the sense that technology can help to better de-

tect explosives or prohibited articles in general.

From a security point of view, I think it’s very im-

portant to underline the need to have a balance

between detection and deterrence, and in both

Securing air travelBen Swagerman is Senior Vice President of KLM Security Services. Here heoutlines some of the security challenges facing the aviation industry.

AVIATION SECURITY

Ben Swagerman

KLM:24sept 5/9/08 10:56 Page 96


Another example in the field of cargo screen-

ing is sniffer dogs. We as an airline transporting

cargo make use of a system of regulated agents

and known shippers that are certified by the gov-

ernment with the approval of the European Union.

But while in Europe it’s enough to transport cargo

within Europe in this supply chain security system,

in the United States they require 100 percent phys-

ical screening of cargo transported on passenger

aircraft. We’ve tackled this problem by the deploy-

ment of sniffer dogs, and they are trained and

skilled to detect explosives in cargo.

EUI. To what extent have the new EU airport se-

curity regulations impacted on your operations

at KLM? Do you face any challenges in terms of

complying with the new legislation?

BS. We’re currently in discussion with the

European Commission about the details of the

regulation. Its aim is to make aviation security

more flexible, better harmonised throughout

Europe, and to foster new technologies and new

methods. It’s still under discussion and we have

to wait to see what the exact impact will be on

our operations, but I’m quite optimistic because

I think the EU regulation initially approved by the

council right after 9/11 was very detailed and too

comprehensive. I think it’s a very good opportu-

nity to get more flexible, more effective and

more efficient security in the future.

EUI. Do you think it will have the effect of stan-

dardising security across Europe? Obviously as

an international carrier you must work with

many different countries – do you see much dif-

ference between the security standards at these

different countries?

BS. In terms of the regulation, the rules in the

Netherlands are the same as in the UK and the

same as in France or Germany, but the implemen-

tation of those rules is quite different, and that’s

not a very good thing for us as an airline. For ex-

ample, one measure states that there has to be a

cabin security check before the departure of the

Amsterdam before flying on to the UK or else-

where. The European Commission is currently in

negotiations with the US government as to

whether they can accept each other’s security

system in order to expand the one-stop security

principle further afield, too.

EUI. Obviously one of the key trends of recent

years has been rising passenger numbers.

What sort of challenges does this present to

you as an airline in terms of security?

BS. It presents a challenge in the sense that we

have to be careful that the system won’t collapse

in terms of waiting lines and hassle for passen-

gers. The more passengers you have, the quick-

er the process needs to be. From a security point

of view, having people in a crowded airport is a

security risk in itself. This we saw in the attack

on Glasgow Airport last year, where a jeep filled

with explosives was driven into one of the ter-

minals. Fortunately there were no casualties, but

the danger is, of course, that there will be in fu-

ture.

I think you have to put the point of focus not

on the airport, not on the aircraft, but far away

from the airport. It’s all a matter of intelligence.

Once you have the right intelligence you can in-

tervene as soon as possible. I think the foiled

Heathrow plot in August 2006 is a very good ex-

ample. I think the UK government can be proud

that they have a system in place in which they

have good collaboration between the intelligence

agencies, the airport and the police to prevent a

strike in the earliest possible instance.

EUI. Finally, one of the challenges for security

professionals in this industry is striking a bal-

ance between security and customer service.

How do you address this challenge?

BS. Of course the main principle is that we need to

have secure flights, so we can never compromise

on security. The same applies to safety. On the

other hand, security must be smart and effective

and efficient. One of the reasons we talk with man-

ufacturers as well as regulators is to try to convince

them that putting more and more measures and

more and more obligations on airports and airlines

is not the way forward. Security needs to be multi-

layered, but I think we have reached a stage now

where there are too many measures that are not

consistently applied. We need to find some re-

dundancies in the system without compromising

on these security benefits. �

aircraft – the actual wording is that there should be

an inspection of the seat pockets. Now you can

say an inspection of seat pockets can be done

physically (that is to say the employee opens the

seat pocket), or can it be done visually. Of course,

the aim of doing this is to see whether there are

prohibited articles in the aircraft. There’s a lot of

discussion about whether it should be visual or

physical. That’s only one example. We have many

different interpretations of the rules.

EUI. So hopefully this discussion about the new

regulations will involve some guidelines for the

implementation of these…

BS. Exactly, and one of the basic principles of the

new framework is that the idea of one-stop se-

curity should be advanced in Europe. That is to

say, once an aircraft is flying from one European

airport to another before flying elsewhere, se-

curity checks only need to be performed once.

So for example, if there are basic security checks

done in Copenhagen and you fly to Amsterdam,

those checks shouldn’t have to be repeated in

At Amsterdam’s pioneering Schiphol airport,

KLM was the first major airline to use new

body-scanning machines at security

checkpoints to find metals and explosives

hidden under clothing. The system, which

uses harmless radio waves to display head-

to-toe images of people, has since been

expanded for use by other airports.

Schiphol handles about 160,000

passengers per day at peak times and is

Europe’s fourth-busiest hub.

BODY SCANNERS

“We have reached a stagewhere there are too manymeasures that are notconsistently applied. Weneed to find redundanciesin the system”

KLM:24sept 5/9/08 10:56 Page 97


budget and operational realities – frequently

new solutions require major changes to the

checkpoint, in-depth training or new skill sets

for the screeners.

Finally, and most importantly, is the com-

plexity and challenge of the sheer volume of

prohibited items or threats. Consider the vast

amount of information screeners need to proc-

ess on an hourly basis, yet ultimately, as human

beings, they can only be expected to process

so much information effi ciently. Therefore, a

key challenge is to improve the tactical deci-

sion making ability of the screeners and help

them deal with the volume of possible threats,

so they can improve the effi ciency and consist-

ency of threat detection at checkpoints.

EUI. Why is the OptoScreener unique?

EB. The OptoScreener was specifi cally de-

signed to resolve the current checkpoint

challenges we’ve just discussed.

We improve the level of threat detection at

checkpoints while maintaining throughput – we

can do this because we are an ‘inline’ solution,

which means we do not require additional or

secondary processes, we process data simul-

taneously with the host X-ray system. This is

incredibly important at infrastructure deploy-

ments where you frequently have peak hour

high volume throughput – for example shift

changes at a nuclear power plant, or visiting day

at a prison, or even security at public event, a

concert at a stadium. The automated detection

of liquid threats and weapons through material

analysis and intelligent vision, occurs in real-

time, and screeners are notifi ed of any threats

– this inline added intelligence maintains

throughput, without increasing overall security.

The OptoScreener is designed to improve

existing legacy systems, therefore we are an ex-

tremely budget friendly solution. Although our

system is very sophisticated, it can be quickly

fi eld deployed to existing X-ray machines, and

training of the screeners on the friendly user in-

terface is very swift. We do not require changes

to the infrastructure of checkpoint, nor to pro-

tocol or footprint – the system is mounted and

connected directly onto the X-ray machine.

The volume and complexity of threats,

not to mention how cleverly some threats can

be disguised, are the ultimate challenges at

the checkpoint. We support the principle that

the most effective and valuable resource at

the checkpoint is the security screener – but

we believe they require additional tools to

counter these complex threats.

The OptoScreener revolutionises the

checkpoint because it provides the screener

with additional, sophisticated decision-mak-

ing tools to help improve the accuracy and

the consistency of threat detection. Another

major advantage is our threat database,

which is customisable and dynamic – it can

be updated remotely. In addition to weapon

detection, Optosecurity is the only company

in the world to offer an inline liquid threat de-

tection system. All of these features bolster

the overall performance and confi dence of

the screeners and allow them to effectively

deal with the vast and complex list of pro-

hibited items. It is truly a mission-critical

enhancement for today’s checkpoints.

EUI. Please tell us a little about the company

and its unique technology.

EB. Optosecurity was founded in 2003, as a

technology spin-off from the Canadian Optics

Institute – one of the world’s largest and most

respected optical R&D labs. We’ve developed

a very unique product, the OptoScreener,

which connects to legacy checkpoint X-ray

equipment to detect undesirable or dangerous

liquids as well as weapons and weapon parts.

The OptoScreener is very unique because it is

the world’s only inline system – meaning it does

not require additional or secondary screening

processes to improve checkpoint security.

Our solution is a decision support system that

improves the probability of detecting threats,

therefore increasing overall security.

The OptoScreener is a multidisciplinary so-

lution, it can be deployed in both aviation secu-

rity and critical infrastructure checkpoints, and

our threat database can be customised to focus

on specifi c threats for different locations.

In addition to our talented R&D and busi-

ness teams, the company has a world-class

board of directors, including our Chairman,

the Honourable John Manley, the former

Deputy Prime Minister of Canada.

EUI. What challenges do critical infrastruc-

ture checkpoints commonly face?

EB. We’ve identifi ed three leading and uni-

versal challenges to critical infrastructure

checkpoints. A signifi cant challenge for

security professionals is improving threat

detection without disrupting or restricting

the throughput at a checkpoint. An additional

challenge is improving threat detection within

EXECUTIVE INTERVIEW

Security solutionsEU Infrastructure asks Eric Bergeron, President and CEO of Optosecurity, about the challenges of critical infrastructure checkpoints and what makes his company unique.

Eric Bergeron, President and CEO of

Optosecurity Inc., has over 20 years

of global international management

experience in high-tech industries,

including business development,

sales, technology and finance. He is a

member of the Board of Directors of

the Canadian Association of Defence

and Security Industries (CADSI) and

was recently appointed member of

the Canadian Government's Science,

Technology and Innovation Council.

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This EU research project, under the PEDEA+

umbrella is part of EUREKA within the EU,

aims to address this problem.

The difference in the IMATERA projects,

compared to other ‘naked cameras’, is that

we work in higher frequency, in real time

and in room temperature. All of this together

gives a higher resolution image of what is

hidden underneath the clothes a person is

wearing, down to a size of some mm.

With all this power, the IMATERA

projects have also addressed the invasion

of privacy issues, which many other projects

forget. Instead the system will automati-

cally detect a suspicious object and present

the outline on top of a normal video image

on the monitor. This way, the machine could

also be used in orthodox Muslim countries

since the device won’t cause any religious

or integrity problems. With this approach,

the machine, can not only work in assisting

screeners, but it also allows for automated

security checkpoints at lower security areas

like a sports arena.

The research part in the IMATERA project

stretches until 2011 and a device based on

this technology will probably be available on

the market around 2012-2015.

curity Administration in the US to cross the

checkpoint at several US airports with guns,

knives and improved explosive devices. In

fact, when tests were carried out at Denver

International Airport in 2007, in 10 percent

of the cases, the items were detected. The

remaining 90 percent passed the check-

points even without being found/detected.

In 2006, Department of Homeland Se-

curity's Offi ce of Inspector General and the

US Government Accountability Offi ce (GAO)

found widespread failures in US airports.

According to the GAO, at 15 tested airports,

security screeners only found 10 percent

of the guns and explosives the undercover

agent tried to sneak past.

This is why there is extensive research

throughout Europe and US in new technolo-

gies to aid the security screeners in combat-

ing terrorists, insurgence and criminals. One

of the more promising technologies has been

nicknamed ‘naked camera’ due to its ability

to see through clothes and is based on ultra-

high radio waves named THz.

This is the reason behind the IMATERA

project – IMAging in the TERAherz domain.

All who pass an airport security

checkpoint today are forced to

remove jackets, coats, com-

puters from their cases and

sometimes belts, shoes, etc. In

general, it’s painstakingly slow and is pri-

vacy intrusive; but it’s for the greater good

and helps us keep safe.

However, one of the problems with the

traditional techniques like the X-ray machine

and the metal detector arches at a security

check point, is that it’s virtually impossible to

detect non-metallic articles like sharp plastic

and ceramic items that could also be used

as weapons carried on a person. The current

way to combat this is to set the detector to

go off after a slightly randomised number of

people passing the arch, regardless if they

carry any metal items or not.

The object is to keep offi cers on their

toes and to be able to pat people down. The

aim is to discourage terrorists or criminals to

try to sneak something through. In a perfect

world, this makes it impossible to carry on

any hazardous items onboard aircrafts. Un-

fortunately, as we all know, we do not live in

a perfect world.

Contrary to popular belief, it’s quite easy

to get through with weapons, explosives,

Tasers and other dangerous items. To keep up

some kind of pace in the security checks, the

offi cers never, or at least rarely, stop anyone

passing the metal detector if it hasn’t given

off an alarm. This is the Achilles heel; we don’t

get checked what we hide under our clothes

unless the alarm sounds. As matter of fact,

even when the detector give of an alarm, the

offi cer sometimes misses obvious items due

to intimidation, charm or plain laziness.

These facts allowed for undercover

agents working for the Transportation Se-

What is a ‘naked camera’ anyway?Johan Öhgren investigates airport security.

Johan Öhgren is the owner of

Acquris IT HB. Acquris is one of

a few companies that handle the

complete chain, from developing

to fabrication to installation of

both overt and covert camera

surveillance systems. Öhgren

is the Swedish National Co-

ordinator in the IMATERA project.

“The system will automatically detect a suspicious object

and present the outline on top of a

normal video image on the monitor”

Acquris Ed P100.indd 100Acquris Ed P100.indd 100 5/9/08 11:33:515/9/08 11:33:51

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The flow of passengers travelling by air is

set to undergo remarkable growth in

Europe over the next few years, accord-

ing to new research from Frost &

Sullivan. The research firm has found that air-

ports are revamping and redesigning their infra-

structure with a priority on improving security,

creating new opportunities for security equip-

ment providers. The airport passenger screening

industry needs to adjust to evolving require-

ments and effectively respond to customer de-

mands in this concentrated marketplace.

The advent of millimetre-wave technology

is on the verge of transforming the airport se-

curity screening market in Europe. Upcoming

revamps and soaring passenger capacity are

triggering major changes in security layouts,

setting the stage for security screening to

take-off over the next decade. As a result, rev-

enues in the European airport passenger

screening market are poised to increase sub-

stantially over the period 2008-2017 as air-

ports procure additional units to leverage their

security layout and better compete in their

passengers’ facilitation. The report, entitled Airport Passenger

Screening Market in Europe and covering pas-

sengers’ hold baggage, narcotics and metal de-

tection, predicts that market revenues will

almost triple behave 2007 and 2017. “Most no-

tably, airport expansions and the desire to im-

plement cutting-edge security technology will

drive the market,” notes Frost & Sullivan analyst

Marie-France Mann. “The number of passengers

in airports is on the rise, compelling the pro-

curement of additional security equipment.”

Airport security will increasingly change, as

the European Union standardises and intro-

duces regulations. At the same time, most air-

ports in Europe intend to modernise, privatise

and develop their infrastructure. Currently, the

airport security screening market remains heav-

ily concentrated on the suppliers’ side, with sig-

nificant opportunities for market participants to

grow their business.

The biggest challenge for airport screening

equipment manufacturers will be to help air-

ports achieve the optimal balance between se-

curity and facilitation. Suppliers must support

airports in achieving high revenues, while pro-

viding top-line security equipment and services.

European airports are undergoing major

changes in infrastructure design to process the

growing number of passengers. However, they

have to ensure that the security equipment and

design they purchase comply with EU-mandat-

ed security regulations. Therefore, suppliers

face the challenge of adhering their systems to

EU regulatory standards.

“Security screening manufacturers must

clearly understand the requirements of end

users and the regulations framing the industry,”

explains Mann. “While evaluating the needs and

customising their products to meet varied re-

quirements, manufacturers should opt for new

system designs and capabilities to revolutionise

the marketplace.” �

Airport screening market set to take off


Surge in air travellers creates tremendous growth potential for Europeanairport passenger screening market.

Beams of radio frequency (RF) energy

in the millimetre wave spectrum are

projected over the body’s surface at

high speed from two antennas

simultaneously as they rotate around

the body

The RF energy reflected back from

the body or other objects on the

body is used to construct a three-

dimensional image

The three-dimensional image of the

body, with facial features blurred for

privacy, is displayed on a remote

monitor for analysis

HOW MILLIMETRE WAVETECHNOLOGY WORKS

“Revenues in the European airportpassenger screening market are poisedto increase substantially over the period2008-2017”

ANALYST VIEWPOINT

FROST:24sept 5/9/08 10:56 Page 102

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facade of the building. These measures are

required where street furniture (such as bol-

lards, planters and security walls) cannot be

used for perimeter protection, as the required

stand-off distance is not available outside of

the premises to be protected – this is often

the case in tight city centre locations.

A range of measures can be employed

to achieve this objective, from reducing the

amount of glazing or including high perform-

ance toughened glass, through to the inte-

gration of blast resistant materials such as

Bi-Steel within the fabric of the structure.

Security by designThe concept of ‘security by design’

should be at the heart of all the counter-

measures described above. Prevention is

always better than cure, and the inclusion

of the appropriate blast protection security

at the conceptual design stage of any new

building will provide suitable protection for

the structure and those who use it.

mitigating the effects of an explosive blast.

This means installing an appropriate anti-

attack vehicle protective solution, which may

consist of permanent bollards or walls, or

redeployable barriers.

Corus has developed a range of per-

manent solutions to address the ongoing

terrorist threat by providing high levels of

stand-off and site perimeter protection at

security sensitive locations. Bi-Steel bollard

and wall systems meet the performance

standards of PAS 68:2007, the accepted UK

classifi cation system for vehicle security

barriers and their supporting foundations

when subjected to horizontal impact. The

systems have been carefully designed to

blend aesthetically into the local environ-

ment and can be painted, clad in brick or

stone, or cement-rendered in keeping with

the surrounding streetscape.

Corus Bi-Steel also has a redeployable

system designed to meet the requirements

for rapid, temporary deployment, effective

vehicle stopping and protection of people

and assets. A robust system, it can be quickly

deployed with minimum disruption, typically

on a short or medium-term basis, providing

an ideal solution for protecting crowded

places and security sensitive events. These

barriers have already been used to protect

the Palace of Westminster, New Scotland

Yard, Stansted Airport and other locations of

strategic infrastructure.

Integration An increasing number of buildings are

being designed to incorporate structural

security features that are able to resist ex-

plosive blasts or reduce the damage caused

from detonated devices. The primary objec-

tive is to stop vehicles from penetrating the

Several initiatives have been taken by

the UK Government to prepare for and

counter the increasing terrorist threat.

This has involved formulating a security

strategy and setting up specialist agencies,

notably the National Counter Terrorism Se-

curity Offi ce (NaCTSO) and the Centre for the

Protection of National Infrastructure (CPNI).

In March 2008, the National Security

Strategy was published. The strategy pro-

vides a comprehensive framework that

Britain will adopt to meet the security chal-

lenges of today’s world. In the strategy,

much emphasis is placed on the need to

physically protect buildings, crowded places

and the people who frequent them from

terrorist bomb attack. Enhancing protection

of our critical national infrastructure – such

as ports, airport and rail stations, along

with key public and commercial buildings,

sports stadia and other places where people

gather together in numbers – is also high on

the agenda.

Protective security measures ranging

from barriers and bollards to walls around the

perimeter of a site can substantially reduce

the threat from a vehicle-borne improvised

explosive device (VBIED) attack.

Security aestheticsWhilst protective security measures

must be ‘fi t for purpose’ in terms of their blast

and impact capabilities, the versatility of the

scheme and the aesthetics of the completed

installation are now also critical. Today’s

solutions need to fi t with the surrounding ar-

chitecture and environment, as well as being

straightforward and easy to install.

In the fi rst instance, effective perimeter

and stand-off protection are key to minimis-

ing the possibility of attack by VBIED, and to

The current threat-level from terrorist attack in the UK remains at ‘severe’ – highlighting that the possibility of an attack is a constant reality. Dr Jurek Tolloczko, General Manager at Corus Bi-Steel, looks into security measures.

For further information, contact: Nicola Davies, Marketing Manager, Corus Bi-Steel +44 (0) 1344 751670 [email protected] www.corussecurity.com/bi-steel

Protecting against terrorists

Dr Jurek Tolloczko is General

Manager for Bi-Steel, part of

Corus, with responsibility for

Defence and Security. He has

been involved with blast and

fi re engineering for over 20

years and has a wide range of

practical experience of how to

design structures to protect

against accidental and deliberate

explosive attack.

Corus Ed P104.indd 104Corus Ed P104.indd 104 5/9/08 11:34:335/9/08 11:34:33


U tility and telecommunication busi-

nesses provide the infrastructure

fabric for maintaining our way of life.

The pipes and cables that criss-cross Europe

give us heat, light, water, the ability to talk

and see others, and take away our waste.

Most of this infrastructure has been buried

for decades and recording its accurate loca-

tion has not always been a priority. Customer

satisfaction, health and safety, effi ciency,

effectiveness, legislation and competition

have all now become boardroom concerns

and one way to attack them is to know what

you have, its condition and where it is – an

accurate location-based asset management

system that supports business intelligence.

Most organisations have installed

geographic information systems (GIS) that

perform some departmental functions. GIS

is now entering the ‘open standards and

service-oriented-architecture (SOA) of main-

stream IT’, but many businesses have yet to

embrace GIS as their enterprise asset man-

agement system, even though interoperabil-

ity can be achieved through geo-referencing

their data.

The UK base level for location is the

Ordnance Survey (OS) map. In the 1990s

discrepancies between digital maps and

Global Positioning Systems (GPS) co-ordi-

nates became apparent. The OS therefore

embarked on a Positional Accuracy Improve-

ment (PAI) programme – completed March

2006. Base map features were shifted into

new GPS-based positions – up to 28m in rural

areas, but varying distance and direction.

Organisations that had plotted their assets

against OS mapping then faced the issue

of repositioning all of their records. Further

impetus came from new legislation – Traffi c

Management Act. The UK Government’s aim

is to encourage improved planning and co-

ordination of road works and companies will

have to provide electronic exchange of accu-

rate asset information. For many companies,

this requires a complete process overhaul

and in-depth analysis of the quality of loca-

tion data for buried cable/pipe assets.

Central Networks, the electricity distri-

bution company for central England and part

of E.ON UK, realised that action was required

with 86 percent of their land coverage affect-

ed by the OS PAI programme with the remain-

ing urban 14 percent affected by new building

developments. A worldwide competition was

won by Rolta in May 2007 for a three-year GIS

Data Improvement Project which is part of an

overall UK£8 million investment to review,

change and amalgamate GIS, creating one

enterprise system for the entire company.

The project will update all geospatial infor-

mation and will involve realigning or captur-

ing every single cable of its 133,000km of

underground cables and overhead lines that

go through 97,000 substations, link boxes

and other network assets, and transferring

them to OS MasterMap. This realignment will

enable the use of GPS technology in the fi eld

to capture asset records.

The work is being undertaken at Rolta’s

GIS production centre in Mumbai with secure

high-speed links between both companies.

Rolta is integrating data from numerous

sources: scanned images; vector fi les;

database attributes, and uses a variety of

systems: GE Smallworld; Intergraph; Bent-

ley; Innogistic; ITS and Oracle to create one

comprehensive and accurate geospatial da-

tabase for Central Networks. As the resultant

system will be at the heart of asset manage-

ment, it was important that location accuracy

was enhanced and Rolta went even further.

Rolta started with the application of

shift parameters to realign the cables and

other assets, adjusted using the engineers’

fi eld dimensioning and fi nally applied the

business rules. This back-to-basics ap-

proach was also necessary for new building

developments where the cables and assets

had been plotted against builder’s proposed

plans and these now had to be realigned to

the as-built position. A further enhancement

has been the use of the latest geo-rectifi ed

aerial photography to accurately position

electricity poles.

So, Central Networks is answering the

question ‘Where exactly are my assets?’ by

collating all their knowledge and records

and reviewing the quality and accuracy in

one project. In this highly competitive world

where effi ciency and effectiveness affect the

bottom line, an accurate asset management

system is an essential business tool.

Roland Cunningham is the Geospatial

Sales Director at Rolta UK and has over

30 years’ experience in the geospatial

and IT industry, including consultancy,

business development and sales. Rolta

is a leading provider and developer of

IT-based services in GIS; engineering &

design services; and Enterprise IT with

multi-million euro projects undertaken

worldwide.

For more information visit www.rolta.com or email [email protected]

So where exactly are my assets?

ROLAND CUNNINGHAM

INDUSTRY INSIGHT

“In this highly competitive world where effi ciency

and effectiveness affect the bottom line,

an accurate asset management system is an essential business tool”

rolta.indd 105rolta.indd 105 5/9/08 11:06:355/9/08 11:06:35


Nico Westpalm van Hoorn is responsible for adding value to the

port’s business processes, managing safety for traffi c and logistics

and the leasing of the port’s land. As CIO, he aligns with his business

managers to ensure they get the information they need to run their

processes. As well as this, of course, he has to keep an IT organisation

in place that can provide the services that are promised.

“Alignment with the business is all about trust,” he says. “IT is

always something that will happen in the future. You promise a system,

but one that will work in the future: you can never deliver on the spot.

Because you always deliver in the future, trust is the base to work to-

gether with your business to realise these goals. You need leadership to

both convince your peers, your C-suite and your organisation that you

need to work together.” According to van Hoorn, leadership is about

creating a vision that people can believe in.

As you might imagine, the main challenge associated with the

running of a port is that of logistics. Van Hoorn explains that he has

The genius of the Port of Rotterdam lies in its central

location. Directly connected to the North Sea – the

most heavily navigated sea in the world – and a Euro-

pean hinterland comprising of 400 million consumers,

the facility is a major economic hub. Each year, 30,000

sea-going vessels and 130,000 inland navigation ves-

sels call at the Port of Rotterdam, and around 500

shipping lines maintaining regular services to over 1000 other ports

all over the world count Rotterdam as an important stop. The port is

Europe’s most important junction for oil and chemicals, containers,

iron ore, coal, food and metals.

These huge cargo fl ows result in advantages of scale for both

the shipping companies and shippers. But with a throughput of 406

million metric tons last year, maintaining an IT infrastructure that can

handle the enormous volumes of data required to manage such a com-

plex ecosystem is a major challenge.

THE SHIPPING NEWSThe Port of Rotterdam is one of the most important cargo junctions in the world, and Nico Westpalm van Hoorn is charged with ensuring operations run smoothly.

2007 throughput: Port of Rotterdam

Total incoming 299,449,000 mt*

Total outgoing 107,363,000 mt*

Total throughput 406,812,000 mt*

*metric tons

Port Rotterdam Ed P106-107.indd 106Port Rotterdam Ed P106-107.indd 106 5/9/08 11:36:285/9/08 11:36:28


specifi c critical performance indicators that it has to report about, and

as van Hoorn explains, it is his job to see that the systems that help

measure, monitor and improve them are all in place.

There is a problem with this as far as logistics goes though:

there still aren’t enough parties connected in the supply chain, so

a lot of the port’s energy has to go into managing

this. “We have the Betuwe line you might have

heard of, which is a new railway dedicated to

cargo from Rotterdam through Holland and then

to Germany. Managing this involves connecting

all the rail operators and shippers. We are still

working with them to use our port community

system.”

One of the reasons this is so tough is that many

SME companies in the supply chain struggle with

their IT infrastructure because they don’t have the

money, the energy or the motivation to be con-

nected electronically. The port is trying to create

a more user-friendly environment for these companies to make their

logistic declarations, telling the terminals at what time containers will

arrive so the planning process works smoothly.

Van Hoorn is the fi rst to concede that there’s still a lot to achieve.

“The future will be about broadband, about mobility, and trying to

connect as many parties who work together as smoothly and seam-

lessly as possible,” he says – no small feat for a port that must support

a logistical chain as complex as this. Luckily for them, van Hoorn – a

man for whom solving technical problems has become “an addiction”

– and his team are up to the challenge.

two main tasks. “One is the leasing out of land and getting the right

kind of companies to settle here in Rotterdam, rather than in Amster-

dam or Antwerp or Felixstowe. That’s what we call the ‘dry’ side of

our work, the land side. And we also have what we call the ‘wet’ side

of our work, which is bringing in the ships safely and taking care

that they move quickly through the port, with no col-

lisions, and get their cargos off as fast as

possible. Once the cargo is off-

board – be it oil, or containers,

or whatever – it’ll have to be put

through to wherever its destina-

tion is – Germany, France, Eastern

Europe, you name it.”

Van Hoorn’s task is to deliver

the systems that can manage these

information fl ows just-in-time, which

means working together with many dif-

ferent parties. “It’s not just one company

that runs the port – it’s a whole chain of

partners working together on the logistics

side. It’s the shipper, it’s the container ter-

minal, it’s the transporter, it’s the people who

receive the containers. So you see there are

many parties involved in running the chain, and our job is to bring

them together and provide them with the information they need to

do their own planning process.”

There are two projects that van Hoorn points to as his greatest

achievements during his time at the port. The fi rst is Port info-link

(www.portinfolink.com), which is the single window one-stop shop-

ping system built in Rotterdam to deliver value to all the parties who

work together in the supply chain. He has also just

completed an IT outsourcing project, which was

undertaken when the port decided that it could

work more successfully if it used IT partners to

provide certain services. Given the growth of in-

ternational trade, the demands on van Hoorn’s IT

organisation were becoming unmanageable – the

port has an annual growth of trade (largely thanks

to the spectacular rise of China as an economic

powerhouse) of between eight and 10 percent,

and it handles over 10 million containers each

year. “I realised that with an internal IT organisa-

tion you can’t have the continuity or the fl exibility

to keep improving your business at the speed and the scale that was

needed,” he explains. “So the decision was made to outsource all

our ICT operations to an international company with a large Dutch

footprint, Getronics.”

Today, van Hoorn’s biggest priority is concerned with core busi-

ness: speeding up the throughput of containers through the port. This

involves working together with all the parties concerned with bringing

in the cargo, speeding it through the container terminal and bringing it

to the hinterland. At the moment this process on average takes eight

days, but van Hoorn’s aim is to get this down to six days. The port has

“Since 9/11, ports have had to enormously increase

security levels, which is partly an ICT issue. It’s to do

with having the right personnel given access to ships or

to containers, making container changes secure, making

sure no-one gets into a container and tampers with the

content. That’s a big issue here in Rotterdam, as in every

port. It’s partly an ICT issue, but also has to be managed

by the owners and the parties involved in the supply chain

themselves.”

RISK MANAGEMENT

Rotterdam’s entire port

and industrial complex

covers 10,500 hectares

and stretches out 40

kilometres in length,

from the city to the

Maasvlakte along the

Nieuwe Waterweg canal.

PORT MAP

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Rolta.indd Sec1:107Rolta.indd Sec1:107 1/9/08 15:24:421/9/08 15:24:42


EUI. What are the main challenges facing the Metropolitan Police, and

how are you tackling these challenges?

AB. There are four main challenges in my opinion. The fi rst and the most

important is providing the Metropolitan Police Service with the appro-

priate tools to support effective and responsive policing, and we do that

in a number of different ways. One is to advise our police colleagues

on emerging technologies and the uses criminals may want to make of

those technologies. Then we deploy suitable technology ourselves fi rst

in the prevention and detection of crime; and the other is in the more

traditional way, which is to support our administrative processes, back

offi ce processes and the like.

The second challenge is keeping our systems and infrastructure

going 24 hours a day and keeping them secure and able to cope with

large increases in demand, whether they are used to support planned

activities like Notting Hill Carnival or unplanned terrorist incidents, for

example. The third challenge has got to be cost and being cost-effective,

particularly as budgets tighten in these more diffi cult times.

The last one I would pick out is probably around the green agenda,

which is meeting energy effi ciency requirements, while still keeping all

the technologies going that the MPS requires.

EUI. What role do emerging communication technologies have at the

Metropolitan Police Service?

AB. Communication technologies have an enormous role in many ca-

pacities. The most important technology is around the mobile space

and using IT to give police offi cers immediate access to the information

required for their job, as opposed to requiring them to come back to an

offi ce or a particular point to get the information they need or to ask the

questions they need.

EUI. And what are you doing in the mobile space at the moment?

AB. We already have mobile devices in our vehicles that are used both

as sources of information and to dispatch offi cers. We provide mapping

technologies so offi cers can fi nd out where they’re going as well as

access to the police national computer, so that checks that can be made

when offi cers are on the move.

Later this year we will be rolling out PDA devices to offi cers. This

will give offi cers on the street the ability to access MPS systems and to

receive messages and information when they are out and about.

EUI. In your opinion, what kind of technologies can be implemented to

achieve greater effi ciency so that less time is spent on paperwork?

AB. The use of technology to make people more effi cient just isn’t

enough on its own. What we have done in the Met in terms of mobile

devices very much started off with looking at what the offi cers need to

do. Technology is only part of the solution – to get greater effi ciency,

processes need to be changed as well.

EUI. And do you believe GIS solutions can be applied to improve effi -

ciency? And if so, how?

AB. Yes, defi nitely. We have a new strategy for using GIS, and we know

that we can make effi ciency savings by allowing people on-screen

access to information, particularly GIS solutions. And it’s also very

helpful to us in the work that we do – using GIS solutions to gather im-

EXECUTIVE Q&A

TECHNOLOGY AT THE TOPEU Infrastructure speaks to the Metropolitan Police Service CIO, Ailsa Beaton, about the challenges and opportunities of IT communications at the largest force in the UK.

Med Police.indd Sec1:110Med Police.indd Sec1:110 5/9/08 11:04:495/9/08 11:04:49


portant information on the whereabouts of an offence is critical to us.

So part of it is about cost and time effi ciency, but a lot of it is about

improving the quality of information that allows us to bring more offend-

ers to justice.

EUI. Data security is a huge issue in IT for all industries. What strategies

do you employ to ensure that all data remains secure at the Met?

AB. Data security is important for everyone, but it’s particularly impor-

tant for us to secure public confi dence as well as to keep information

we’ve got confi dential. The main component of our strategy is that se-

curity is sponsored at board level. We have information security policies

and standard operating procedures and we also take advice from other

government bodies in terms of best practice and security, as well as

using our own experts who are professionals in that fi eld to make sure

we’ve got the best advice.

Having got that in place, we make sure that all our systems are

subject to an information assurance process and that any risks are iden-

tifi ed, and if they’re not mitigated, any residual risks are properly man-

aged. We do that with all the technologies that we deploy, but before we

deploy anything new we will look at the security implications.

EUI. You are also involved with the National Policing Improvement

Agency on a number of projects, including replacing the police national

computer system with a new national database. What difference will

this new national database make, and how will it be implemented?

AB. My involvement with the National Policing Improvement Agency is

as Information Management lead for the Association of Chief Police Of-

fi cers. I look at the new police national database from a user’s point of

view in terms of what business benefi ts it will provide to us.

As well as replacing the police national computer, the big change

for the new police national database will be the inclusion of intelligence,

expanding upon information that the police national computer has at

the moment, so it gives us improved capabilities in sharing information

across the police service.

EUI. What is the UK’s relationship with the rest of Europe like in terms

of IT police processes? And have you been able to learn anything from

any other countries?

AB. Yes, the UK’s relationship with Europe in terms of the European

Union is handled through the National Policing Improvement Agency,

as they are the people who are very closely linked to the EU develop-

ment programmes. But the Met also has very strong links with police

services across the world, and I have contact with my peers in other

services.

We do try to learn from each other, and only a few months ago I was

involved in a forum that included chief information offi cers from law

enforcement agencies from all around the EU, talking about the things

that we’re doing to meet the problems of law enforcement. And obvi-

ously in a forum like that there are some things where we’re ahead of the

fi eld, as it were, and can share what we’re doing in the Met with other

organisations. But there are other areas where colleagues

from other countries have done some innovative work that

we will look at in detail and see whether it can be of value

to us here.

So I think we have a good relationship, and this means

we can fi nd out what each other are doing and share our

best practice.

EUI. In terms of the future, what are your key areas of focus,

and are there any other technologies in particular that

you’re excited about seeing implemented?

AB. In terms of the future, the big thing for me is going to be

the London 2012 Olympics where the Metropolitan Police

Service has the lead for security. And so I have the respon-

sibility of making sure that we’ve got the systems in place

to discharge those security responsibilities. That’s the big

thing on my horizon.

And in terms of new technologies coming forward, there

are two I would highlight. One is in the mobility space. The

more information we can give to offi cers when and where

they’re doing their job, the better we can support them.

And the other one I would pick out is our ability to

engage with the communities we serve, using the internet-

based technologies that are now available. We need to take

advantage of these technologies to make our engagement

with communities the best it can be because that’s what

we’re here for, to serve the people of London, and to do that

well we need high levels of interaction.

THE MET IN NUMBERS

31,000 Police Offi cers

14,000 Police Staff

4000 Police Community Support Offi cers

2500 Special Constables

414 Traffi c Wardens

180 Police Stations

32 London Boroughs

Med Police.indd Sec2:111Med Police.indd Sec2:111 5/9/08 11:04:505/9/08 11:04:50


EU Infrastructure asked Skanska’s newly appointed CIO, Magnus Norrström, about how he is preparing for his new role supporting the construction industry.

EUI. Do you feel like your previous

roles have prepared you well for

your current postion at Skanska?

MN. Before my previous role at

Nordea, I spent 20 years with

Accenture as a management

consultant in IT. After leaving

Accenture in 2005, and joining

Nordea as the CIO, I learnt about

the dynamics that are ongoing

in a larger corporation. Certainly

this experience of a larger or-

ganisation was very valuable.

My personal philosophy is that IT is important for business, but

it’s not there for its own sake; it’s there to support the business. But in

internet banking, it was IT that partly drove that development as well

as being there to support the business.

IT in fi nancial services has a more prominent role and also a

larger part of the budget compared to the construction industry.

The usage of IT is also different here at Skanska. Not every single

individual has their own email account, for example. There are some

differences, but many of the things that I learned at Nordea are ap-

plicable here at Skanska too.

EUI. When working as a CIO, you learn the basics and then adapt what

you have learned and apply it to any industry that you work in?

EUI. So Magnus, you recently joined Skanska, and have been spend-

ing your time travelling around to better understand Skanska’s op-

erations. How is that going?

MN. Yes, that has been going well. I’ve met all the members of the

senior executive team, including our CEO, Johan Karlström, and I’ve

met about half of the other staff units that are located here in Stock-

holm. I still have a couple of meetings to go, staff units are areas like

reporting, communications, purchasing, etc.

I’ve been to Helsinki and met our person that is responsible for

the UK. I also have meetings planned for Poland, Norway and the US

and am planning trips to the Czech Republic and Latin America. But

I’m quite used to the travelling.

EUI. What have you learned about the role so far?

MN. I have three different responsibilities here with Skanska. I’m

Head of the Group Staff IT Unit and in that capacity, I report to one of

the senior executive team members, Tor Krusell, and I am also respon-

sible for the group. So in addition to my IT responsibilities, I do have a

personnel responsibility.

The second role I hold is as chairman of the board for Skanska IT So-

lutions. That covers the IT development, maintenance and the operation

company for Skanska, mainly Skanska Sweden. That’s a group of about

90 people with their CEO who then reports to me in this capacity.

The third area I cover is co-ordination of the IT activities in the 13

business units. Skanska is a decentralised organisation, which means

the business units do not use one overall IT structure.

EUI. What is on top of your agenda for your fi rst year in the company?

MN. When I began at Skanska I agreed that I would split 2008 into

three different steps. The fi rst is to get into the organisation and the

business as such. Second is to formalise my journey going forward,

and the third step is to get buy-in and confi rmation of that plan.

BUILDING FUTURET

HE

EXPERT OPINION

Skanska Ed P112-113.indd Sec1:112Skanska Ed P112-113.indd Sec1:112 5/9/08 11:37:135/9/08 11:37:13


Underneath that we will be using the same type of vendors as

well or a selection of vendors. The most important areas is for ter-

minals. We look at it for PCs and for servers and then we see how

much of that will be in common and then we will also have common

purchase agreements.

EUI. Where do think your IT focus is going to lie? Are there any particular

business goals you’re trying to address?

MN. We will be looking into the whole business process, from the archi-

tecture to the development of what kind of new build we’re doing, and

then the purchase, logistics and the project management skills that are

needed in all these areas. My job is to see how we can support that from

an IT perspective and that, you could say, is nothing new It’s just doing

it better.

IT will be instrumental to enhance productivity in our core busi-

nesses. For example, IT is a crucial tool in our current standardising of

our residential construction and we are also looking into BIM, which is

building information modelling, for all type of projects.

That’s a way of gathering data from the very start of designing and

planning what you want to build all the way through the handover of the

completed building. We want to develop this further to better serve our

goals, methods, processes and ways of working. I believe, we can be

more effi cient by utilising IT in the construction process.

EUI. What do you hope to achieve at Skanska?

MN. I want to make sure I understand the business model of pure con-

struction compared to the development area, where we have the resi-

dential, commercial and infrastructure development. In these areas the

process looks a little bit different, as we are developing it from our own

land bank all the way until we sell the objects. I have to understand that

so it can be supported more successfully from an IT perspective. In addi-

tion to that, we have to see if there are areas that can be integrated.

And at the moment, there are two initiatives, which started before I

joined but which I am part of right now, regarding Nordic IT, to see if there

are any synergies in the Nordic area and the same thing in the US area.

Those are two additional things that I will be focused on for the future

different business areas. A busy time, but it will be a great challenge.

Magnus Norrström

MN. Yes, you can, but I actually think that my experience as a consult-

ant stood me in great stead for this role. When you look at the role of

a CIO – regardless of what business you work for – you are a leader for

the group that you are responsible for. You have to have the general

management skills, you have to have an understanding of the business

and you must have an understanding of IT. Throughout my 20 years with

Accenture, I understood from a practical point of view how IT works.

Then, of course, there are things that I learned at Nordea that you

can’t learn as a consultant, having direct line responsibility. A combina-

tion of my experiences with a consultant background and line responsi-

bilities have helped me.

EUI. The Group Staff IT Unit is responsible for the group’s global stand-

ards for data network, security and common platforms. This must be

quite a challenge given the group’s global reach?

MN. I do see it as a challenge, but that isn’t necessarily a negative thing.

We have a common standard, which we use here at Skanska, so there

are directions in those areas which gives the order of standards for the

common network, common security and the common platforms.

Another factor that is important is that you present your sugges-

tions in a way that the users – the other business units’ IT departments

– see the value of it, so it’s a two-way communication. We can give

directions and overall goals, but we can’t direct them to do certain

things when it comes to their own IT department. Moving forward, the

level of integration is one of the areas I will be focusing on, as there

are benefi ts and synergies to having more of the basic IT structures

in common.

EUI. What other issues will you be addressing?

MN. On the corporate level we have a Green Building initiative. We also

have another staff unit called Sustainability. What we have started in

IT is a group that consists of members from the major IT departments

around the globe. We don’t call it green IT, we call it sustainable IT.

Under that umbrella is where green IT falls, along with a number of

other topics.

EUI. Do you think it will be a challenge to co-ordinate the purchase of

IT-related services, seeing as you have to cover such a large group?

MN. The business model that we are using is a decentralised inte-

grated model. That’s the overall Skanska business model. Under

that umbrella, it depends how you see the balance between the

decentralised and the integrated part. It also depends a little bit on

what type of vendors, for example, hardware or software vendors or

consultants that we’re using, how we are dealing with them. But we

do have a number of common agreements with global players like

Microsoft, for example.

It’s still up to each individual IT manager in the different busi-

ness units to decide what they want to do, as we do not decide at the

corporate level what type of software they should use.

It’s part of the integration strategy to see if we can do more in

common. If we can do that – and I’m pretty confi dent that we can – it

will be easier because we can all use the same type of application,

the same type of integrated architecture.

Skanska Ed P112-113.indd Sec1:113Skanska Ed P112-113.indd Sec1:113 5/9/08 11:37:195/9/08 11:37:19


Modern wireless communications

rely on ever more extensive

software to improve interoper-

ability, security, data rates and

spectral effi ciency. Indeed, as radio technol-

ogy evolves from analogue to digital, soft-

ware has surpassed hardware as the most

complex element in a radio device.

The investment made by radio manufac-

turers in software has consequently increased

dramatically. It will continue to do so. It is

therefore urgent that software is designed

correctly to derive maximum value from this

investment and to capitalise properly on the

benefi ts of software-based systems.

The evolution of the ETSI TETRA stand-

ards from Release 1 to Release 2 highlights

the importance of investing carefully in pro-

tocol software development. The fi rst gen-

eration of TETRA radios to reach the market

are now approaching end of life and users

are anticipating the advanced features and

higher data rates offered by TEDS and TETRA

Release 2. However, many manufacturers are

struggling to maintain their original TETRA

protocol code and are fi nding that they can’t

upgrade it or port it to next-generation proc-

essors and hardware platforms.

In order to offer a new Release 2 radio,

these manufacturers are faced with two op-

tions. They can discard their existing code

and begin again, with the attendant risk

that the lifespan of the new software is also

limited by its portability and maintainability.

Or they can try and shoehorn their existing

code from one processor or platform directly

to another – investing additional money and

time to extend the life of software that will

still need to be abandoned at some point.

Manufacturers can even fi nd their choice of

hardware for a next-generation platform se-

verely constrained by legacy software that is

10 years old.

Commercial radio protocol stack soft-

ware is extremely complex. It involves both

signal-in-space and software co-ordination

intelligence, as well as a carefully managed

relationship between hardware and software

to ensure that the code can be upgraded

and reused on new platforms as technology

evolves. Radio software design therefore

needs to aim to maximise software portabil-

ity, upgradability and performance – whilst

minimising development costs.

Completely decoupling protocol stack

development and maintenance from a spe-

cifi c platform, operating system and user

interface is key to this, as is using correct

design practice and tools and procedures

geared towards embedded hardware at each

of the specifi cation, design, implementation,

integration and maintenance phases.

However, most radio protocol stack

developments today still involve cobbling

together software design techniques and

tools from other fi elds and different vendors,

rather than offering an integrated approach

geared for modern radio platforms. While

commercial development tools are becoming

more available, radio protocol stack devel-

opment has yet to become a truly specialist

enterprise within the wireless industries.

Adherence to standards also remains an

important consideration for radio software

design. Interoperability is a hot topic in

communications, and digital standards are

central to digital interoperability. The benefi t

of standards-based software is illustrated

by comparing the digital Professional Mobile

Radio (PMR) industries in Europe and North

America. The European ETSI TETRA Release

1 air interface standard is well defi ned, fi rmly

enforced and widely adopted, encouraging

independent handheld manufacturers to the

market and driving down the cost of equip-

ment. By contrast, in North America digital

PMR radios have tended to use proprietary air

interfaces only loosely based on APCO P25,

the North American equivalent to TETRA, due

to less stringent regulation and enforcement.

However this has encouraged standardisa-

tion of the P25 network interfaces and as a

consequence, multi-vendor options in the

network and even solutions for air interface

interoperability via the network look set to

fl ourish. In each case, where standards have

been followed, communications fl exibility

has markedly improved.

Modern communications hinge on software designAnna Squires, Product Development Director at Etherstack, explains the importance of wireless technologies to improve security, data and effi ciency for radio devices.

Anna Squires joined Etherstack as

an engineer in 1999. In recent years,

Squires has led defence Software

Defi ned Radio (SDR) development

projects with the company. She is now

Etherstack’s Product Development

Director and is also responsible for

Etherstack’s Software Defi ned Radio

strategy.

ASK THE EXPERT

“It is therefore urgent that software is designed

correctly to derive maximum value from this investment and to capitalise properly

on the benefi ts of software-based systems”

etherstack.indd 114etherstack.indd 114 5/9/08 11:03:425/9/08 11:03:42

Etherstack.indd 115Etherstack.indd 115 1/9/08 15:20:551/9/08 15:20:55


HARNESSINGHYDROPOWER

• 520,000 power grid customers

• 600,000 power sales customers

• 80,000 residential alarm customers

• 14,900 GWh distributed through

the distribution net

• Annual median hydropower

production amounts to 2900 GWh

HAFSLUND: FAST FACTS

Christian Berg:24sept 5/9/08 11:09 Page 116

2007 was a big year for Norwegian utility company Hafslund. With an in-

creased interest in climate change and renewable energy worldwide,

Hafslund has been attracting increased international attention for the

company’s focus on renewable and sustainable energy, and in addition,

profits reached an historic high. “2007 was a fantastic year,” smiles

Christian Berg, President and CEO of the energy giant. “But it didn’t just happen. We

have been working towards these goals since the group as it is today was created,

around 2001.”

Hafslund was originally established in 1898, with the objective to harness hy-

dropower; however, it wasn’t until 2001 that the group focused its activities on en-

ergy while also acquiring several alarm and security companies. Today, Hafslund has

three business areas, heat and infrastructure, markets and venture, representing the

different aspects of Hafslund.

“I am pleased with the financial results, and believe that it proves that our busi-

ness functions have performed well, although it is worth bearing in mind that one of

the big contributors to our financial results was the market-to-market value and in-

crease in value of our shares in RSE,” says Berg. “Our financial results reflect that

both our employees and customers are happy with us, as a supplier of electricity as

well as a network operator with the lowest cost and the highest security of supply.”

In order to keep up the momentum, Berg will be focusing on growth combined

with excellence in service. “Working with infrastructure is a long-term investment,

and alongside that is our contract with society to provide a first-class service, which

for the moment we are performing very well against,” he explains.


After a huge leap forward in 2007, Hafslundhas laid an important foundation in itsobjective: focusing on environmentalresponsibility and the profitable developmentof renewable energy. So what’s next? Presidentand CEO Christian Berg explains how heplans to keep up the current momentum andoutlines his strategies for the future.

BY REBECCA GOOZEE


standing of business and operations. “We seem to get the best of both worlds

– we have the skills and knowledge of the plant itself from our older employ-

ees, and a new skill and knowledge set from our younger employees, com-

bining all the skills and knowledge into one project.”

Berg also points out that Hafslund is working with a va-

riety of suppliers. “We are working with a Chinese supplier

on one of our plants, which is a challenge for us, mainly be-

cause we are not used to working with these suppliers.

However, I believe that it is important that we accept and un-

derstand that the Far East is where most new energy plants

are being built so there is an extreme competence and

skilled mindset in China. We are very much looking forward

to co-operating with the Chinese engineers, who will be

coming to Norway and staying here together with our peo-

ple and working together with us to refurbish the plants.”

Hafslund also has some other major infrastructure projects in the pipeline.

Over the next four to five years, the company will be

investing around three million Norwegian kroner in

pipes and production plants in the Oslo area, in order

to upgrade the distribution network. “Over the next

five to seven years, we will have even more focus on

investing in and upgrading the infrastructure in and

around Oslo,” says Berg.

New plants are also on plan. There are two

biofuel plants, one that has now been operating

for six months and one that is due for completion

in 2010 that will be fuelled with wood and waste.

“We are also building a large pellet plant on the

west coast of Norway, making pellets to be ex-

ported to European coal-fired plants, and we ex-

pect this to be up and running in 2010,” adds Berg.

ChallengesOne of the major challenges for hydropower is

overcoming the legal requirements. In Norway,

Power upgradeAlthough the country is a considerable oil and gas producer, Norway is

Europe’s largest hydropower producer and domestic demand for electricity is

met almost exclusively through hydropower, with an aver-

age annual production of around 120 terawatt hours.

Two of Hafslund’s major hydropower plants are due

a major upgrade by 2011, and as a result the turbine out-

put will increase by an impressive 20-30 percent. For

Berg, it is important to have the right people with the right

skills involved. “We haven’t renewed or refurbished for the

past 20 years,” he explains, “but we do have lots of project

management experience when it comes to other areas, so

we are able to lean on each other internally, using our best

project managers to lead the project.”

While some Hafslund employees have been working for the company for

30-40 years, Berg is also keen to employ younger people with a better under-


Fail to succeed: “You need to fail to

succeed, know how to handle those

failures and also how to handle success”

Develop confidence in leadership: “You

need to have the guts to invest and

believe in new technologies”

Look for new, innovative ideas: “ Find

the crazy guys in the world who want to

find a new solution”

CHRISTIAN BERG’S TOP TIPS FOR SUCCESS:

120TW/hHafslund’s annual

hydropowerproduction


Airbourne.indd 119Airbourne.indd 119 1/9/08 15:17:431/9/08 15:17:43

two-thirds of a hydropower plant needs to be owned by the local munici-

pality or region state, making it difficult to actually buy or build larger hy-

dropower plants. “Despite the legal environment, it is a real possibility for

us to grow the hydropower business in an organic way without ownership

of more than one-third – that’s a challenge we are overcoming, by devel-

oping our own hydro-assets, building new technology, becoming more ef-

ficient and increasing capacity up to 10 percent,” says Berg. “It’s important

to have an organisation on its toes in order to develop itself further.”

Looking at the distribution network side of the company, Berg is keen

to highlight that Hafslund is the most reliable and efficient company in the

sector. However, he admits that there are challenges in terms of distribu-

tion regulations, particularly around how to organise the network. “How

much you should own yourself, how much should be done via contractors

and how ownership is decided are all big issues for us,” says Berg. “But, at

the moment, with a stable financial situation in Norway, we have no driver

for selling assets for the moment, although it is natural for us to look at op-

portunities outside Oslo.”

On the retail side of the business, Berg is concentrating on how to grow

the company, both in terms of operational excellence and in order to take the

company even further in its facilities and operations. Changing the meters in

550,000 homes in the greater Oslo area, which is a large project for Hafslund,

will be a challenge in the period to come, admits Berg. “I also believe main-

taining growth in new areas will be tough, so distributing waste handling, for

example will be key. However, we are building on our waste innovations, which

are looking pretty good – we’ve built one plant and are in the process of build-

ing a new one, and we are even planning a large plant in Oslo.”

InnovationBerg’s ambition for Hafslund is to make everyday life safer and better,

and promoting the company’s environmentally conscious focus on the prof-

itable development of renewable energy. Berg believes that this vision is

important in order to convey that the company represents a good and reli-

able power supply. “It’s also about wanting to take a bigger share of the re-

sponsibility for environmental and climate issues,” says Berg. “We want to

be an organisation that our customers can trust and we are very conscious

about our effect on the environment. We sell guaranteed green power to all

our customers, and are in the midst of doubling capacity of our district heat-

ing in the Oslo area, taking away many old boilers – we have a strong com-

mitment to developing new technologies and solutions for the energy

markets as a whole.”

Hafslund is built on being innovative and inventive and Berg be-

lieves this stems from the formation of the company. “Hafslund has al-

ways been focused on staying at the forefront of innovation,” says Berg.

“It’s in the cultural roots of the company, which is a good foundation for


• Energy production will be increased via growth in

renewable and alternative energy and heating

• Status as a major regional infrastructure provider will

be strengthened through further targeting of district

heating

• Maintain position through improved efficiency, quality,

customer service and product development

• Continue to be a driving force in the strategic

development of the Norwegian power and security

market in order to contribute to increased returns and

more efficient markets

• Identify and develop new investments and business

opportunities

• Develop ownership in Renewable Energy Corporation

to ensure best possible growth for all shareholders

• Continue with its new, flexible HR policy based on

individual needs and work on competence

development and training

• Continue to develop a company culture based on

core values, in order to create a developing and

attractive workplace and secure its good reputation

STRATEGIC PRIORITIES AND TARGET AREAS


a focus on innovation. You need to develop confidence in leadership and

have the guts to invest and believe in new technologies, and you need

to have the ability to handle failure as well as success.” Berg goes on to

explain that the venture arm of the business is dedicated to looking at

new ventures, innovative ideas and “finding the crazy guys in the world

who want to find a new solution”.

The major success for Hafslund over the last couple of years is the in-

vestment in RSE, the global leader in solar energy, says Berg. “We invest-

ed in the company almost 10 years ago, and to be honest it was struggling

until the focus on solar energy became international. Being one of the

founding investors in that group has been a tremendous success. It’s all

about challenging old technology viewpoints and trying to develop new

ways of running water, which has been running for some 100 years through

the power plants, looking at taking more power out of that water, trying new

technologies and being able and willing to invest in that.”

Hafslund has also been investing in two or three automatic metering

companies. Berg is keen to highlight that these metering companies offer

much more than metering on its own, but rather the opportunity to use

them as a communications box to inform the user how much energy they

use as well as let them know how to become more energy efficient during

a particular period of the day, for example.

Social commitmentDespite being one of the country’s most innovative companies within

the energy sector, it is at Hafslund Manor, a protected cultural landmark

built in 1762, that Hafslund was born. Named after the manor rather than

vice versa, Hafslund has enjoyed a long, successful history at the manor

and Berg hopes to continue this. “It’s great to be able to do our internal

meetings in a place with so much history and culture, and a good basis for

making the forward planning decisions we need to make, knowing the his-

tory that we have inherited.”

Hafslund Manor is open to the public all year round, and open for pub-

lic guided tours during the summer months, and as well as this Hafslund

also sponsors a humanitarian organisation, Medecins Sans Frontiers, an

environmental organisation, Bellona Environmental Foundation, and

Valerenga Fotball team, a Norwegian premier league football team. “Social

commitment is an important part of our operational activities,” says Berg.

“We believe they are a part of our long-term value creation and believe that

they inspire both trust and confidence and hope that it makes the compa-

ny even more attractive to stakeholders. Of course, it also reduces some of

Hafslund’s business strategies and risk forces.”

Berg goes on to explain that Hafslund is working with a number of com-

panies when to comes to promoting the issues that the company have –

how to become more energy efficient, for example. “Getting out our mes-

sage to other channels is very important to us.” Belloma Environmental

Foundation has been an important sponsorship for Hafslund. Belloma has

always focused on alternative solutions while recognising that, for example,

the world neither can nor will stop driving cars or using air travel. Instead, it fo-

cuses on influencing decision makers in relation to handling CO2. Belloma is

an important advisor to Hafslund, and makes continuous suggestions for safe-

guarding the environment in the best possible way. “We have organised some

good events with Belloma, including a conference with the Club de Madrid,

drawing interesting conclusions from prominent speakers, and an environ-

mental concert with many good artists, trying to reach out to the audience in

another way than we would usually do as a utility. To be engaged with them is

great for us, they continue to challenge us, and we even get them to work at

our place so they can see how we’re working and thinking and we also send

out our people to them to see how they work.”

Future focusBerg is keen to focus on his long-term plan for the future, growing with-

in the renewable energy sector and increasing investments in existing op-

erations, including distribution networks and hydropower plants. Berg also

maintains that he will continue to focus on operational skills and manage-

ment, finding and retaining the right people in the group and challenging

them in their thinking. Hafslund will also try to remain innovative, although

of course that is always a challenge for larger utilities, says Berg. “We will

continue working towards our long-term goals, which will require focus, but

I am optimistic that we will be successful, as we have been so far.” �


VAMMA HYDROELECTRIC PLANT

BUILT: 1915-1971

TURBINES: 11

INSTALLED CAPACITY: 215,000 kW

MEDIAN ANNUAL GENERATION: 1,275 GWh

FALL HEIGHT: 28.5 metres

FLOW RATE: 950 cubic metres per second

“Working with infrastructure is along-term investment”



tion between the monopile and transition

piece were fi nally grouted, using the patented

MT Højgaard grout packer. Finally, internally

positioned J-tubes were installed, followed

by installation of the external J-tubes. The

external J-tubes are spanning the scour, which

is expected to develop around the pile. The

foundation installation was completed in the

winter of 2007.

Technical dataPrincipal data: Total number of turbines:

54. Size of the wind turbine: 3.6 MW. Water

depths: 6.3-11.2 m. OD for monopile: 4.74 m.

Weight of monopile: 199-266 t. OD for tran-

sition piece: 5m. Weight of transition piece

incl. secondary steel: 181 t. Top level of foun-

dation structure (LAT): +21 m. Client/Owner:

Centrica Ltd.

MT Højgaard has installed 54 foun-

dations during 2007 on the Lynn

and Inner Dowsing sites located

on the east coast of England.

The foundations are each carrying a Siemens

Wind Power 3.6 MW wind turbine.

The foundation concept is a steel mono-

pile solution with a grouted transition piece

installed on top of it, allowing for a standard

fl ange connection to the turbine tower.

Forty-eight of the foundations were in-

stalled by driving only and six of the foundations

were installed with a combination of drilling

and driving. The verticality was adjusted using

a pilegripper, developed by MT Højgaard.

Subsequently, the transition piece was

positioned, with all accessories such as boat

landing, platforms and anodes pre-assembled,

and adjusted by hydraulic jacks. The connec-

FAST FACTS

Employer:

Centrica Renewable Energy Limited

Contract type:

Turnkey

Duration:

2006-2008

Engineer:

Rambøll A/S

Location:

England

Lynn and Inner Dowsing offshore wind farm

MT HOJARD.indd 122MT HOJARD.indd 122 5/9/08 11:05:185/9/08 11:05:18

EUI6_nexans.qxd:euro 5/15/08 8:26 PM Page 123


Booming global demand for wind power, which surged to

nearly 20GW in annual installations during 2007, is on track

to more than double within a decade led

by rapid growth in the US and China.

Emerging Energy Research, a leading research

and advisory fi rm analysing clean and renewable

energy markets, expects global installed wind

base to grow more than fi vefold from its 2007

total of 94GW to more than 576GW by 2020.

As a result of this booming demand, compe-

tition for wind turbine orders has moved from

project-driven, national agreements to multi-year

frame agreements spanning several regions.

These orders increasingly focus on supply of

multi-megawatt turbines as the global wind

market has made a steady shift toward 1.5MW

and larger turbines, encouraging a number of

new suppliers to enter, according to EER’s just-released market

study, Global Wind Turbine Markets and Strategies 2008-2020.

“In this high growth environment, competitive positioning

among wind turbine suppliers is increasingly dependent on supply

chain management,” according to Spain-based EER Research Direc-

tor Keith Hays. “At the same time, to remain competitive, players

across the supply chain – from bearings to blade suppliers – must

rapidly scale up to meet this growing demand.”

EER anticipates the current seller’s market for wind turbines will

continue in the short term while the industry builds out for a new

phase of stable, global growth, stimulating the market to surpass

US$55 billion by 2015. According to EER’s forecasts, global wind

demand will continue to boom, going from nearly 20,000MW in

2007, to just under 50,000MW in annual installations by 2020 and

requiring massive investments in turbine supply.

Larger projectsThe global wind turbine market has seen rapid shifts in scale and

product sophistication on the back of booming global demand for

wind power, according to EER. This has meant an increase in turbine

and project size as mature markets look to tap lower wind speed sites,

while developing markets scale up their total installed wind plant for a

greater contribution to the generation mix.

The global turbine market will see increasing turbine size in

mature markets that require larger rotors, balanced against steady

demand in developing countries for smaller, older product models

that are well-received based on cost and proven performance, ac-

cording to EER. With an increase in average turbine size from just

under 1MW to nearly 1.5MW in the past six years, EER anticipates

global demand for multi-megawatt machines will continue to rise.

EER expects larger projects, particularly over 50MW, will

increase their share in the future. Projects 100MW and larger will

nearly double their contribution to global MW added through 2020

from 24 percent to over 40 percent, according to EER.

Smaller suppliersNorth American and European markets will begin to see increased

competition with several players increasing US manufacturing capac-

ity and vying for orders in this

booming market, according to EER.

The turbine market has seen

increased fragmentation as the

top six players have surrendered

around 10 percent of the market to

smaller players. “The bottom line is

that while entrenched market lead-

ers Vestas, GE, Gamesa, Enercon,

Suzlon and Siemens have sought

to build on relative strong posi-

tions in their home regions, several

mid-sized and smaller players have

sought to exploit this new level of

demand in driving the industry to a

new scale,” says Hays. “The benefi ciaries have been turbine suppliers

strongly established in high-growth markets, including Acciona Wind-

The wind turbine industry fi nds itself in a crucial transition period as it races to catch up with soaring demand, according to the latest research.

Wind turbine industry steps up to global demand

WIND FOCUS

“To remain competitive, players across the supply chain – from bearings to blade suppliers – must

rapidly scale up to meet this growing demand.”

Wind Power.indd Sec1:124Wind Power.indd Sec1:124 5/9/08 11:24:315/9/08 11:24:31


power and Goldwind, as well as mid-sized European players expand-

ing globally, such as REpower, Nordex and Alstom-Ecotecnia.”

Increasing global competition between top suppliers and small-

er expanding players will intensify post-2010, according to EER. As

multiple experienced players challenge the dominance of GE and

Vestas, price competition will heat up. With increasing demand for

turbines, customers that can provide high volume, long-term, fi rm

orders that offer strategic market share positions to turbine suppli-

ers are likely to fi gure more prominently in suppliers’ order books,

according to Hays. This trend will mark more sophisticated strategic

account management targeting multinational utilities and IPPs, ac-

cording to Hays.

Globalisation of the wind industry The wind turbine industry continues to globalise. Europe’s man-

ufacturing pioneers have begun to penetrate North America and

Asia. A growing presence of Asian manufactur-

ers in Europe and North America will

become more pronounced in the years

ahead. Additionally, wind turbine sales

and supply chain strategies will take on a

more international dimension as shipment

volumes increase, according to EER.

With the globalisation of the wind indus-

try, supply chain management has become

a key competitive driver. “The relationships

between OEMs and their component suppliers

have become increasingly crucial, and have

come under increasing stress in the past three

years as soaring demand has required faster

ramp-up times, larger investments and greater

agility to capture value in a rapidly growing

sector,” says Hays. Manufacturers have sought to

strike the most sustainable, competitive balance

between vertical integration of component supply,

versus full component outsourcing to fi t their tur-

bine designs.

Component suppliers will continue to play a critical role in scaling

the wind industry as they take their businesses globally in step with

the turbine suppliers they provide. Due to the diverse issues facing

each component supplier, when deciding whether to increase pro-

duction capacity or not, the wind industry has struggled to move as a

unifi ed whole, able to meet booming demand. Greater collaboration

across the supply chain, spurred on by shortages but also turbine

performance, is already leading to better co-ordination that will im-

prove the industry’s ability to deliver, according to Hays.

The surge in global megawatt-capacity added observed over

the past three years has served to stabilise demand for long-term,

higher volume investments in adding new capacity. EER expects this

surge to produce sustained growth through 2015 that will surpass

US$55 billion installed annually as the wind industry moves into a

new phase of more secure growth in the mainstream power mix.

NEW EWEA REPORT PREDICTS BRIGHT FUTURE

In its latest report entitled Pure Power: Wind Energy

Scenarios up to 2030, the European Wind Energy Association

(EWEA) outlines the road towards large-scale wind energy.

Presenting three development scenarios for 2010, 2020 and

2030, the report examines in detail the probable impact on

electricity, greenhouse gas emissions and the EU economy. It

confi rms the positive prospects of a technology that last year

became the leader in terms of net power capacity additions

in the EU. Wind power’s share of new generating capacity

is forecasted to be 34 percent in the period 2005-2020 and

46 percent in the decade leading up to 2030. Wind power’s

share of new capacity in Europe in the 25-year period 2005-

2030 is 39 percent.

Wind power has experienced dramatic growth

over the past few years. It currently meets 3.7

percent of the EU electricity demand and has

ranked second in terms of net power capacity

additions over the last eight years. This strong

development can be maintained, and further

reinforced in the coming years, as long as the

clear commitment from the European Union

and its member states continues. Swift

adoption of the new EU Renewables Energy

Directive by the European Parliament and

the Council is the key to the sector’s strong

future development.

Pure Power shows that the European

Commission’s goal of increasing wind

power’s share up to 12-14 percent by

2020 is within reach. “On average,

wind power capacity needs to increase

by 9.5GW per year over the next 13

years to reach 180GW and meet 12-14 percent of EU

power demand in 2020. This is certainly achievable considering

that the EU wind energy capacity increased by 8.5GW last

year,” commented Christian Kjaer, EWEA’s Chief Executive.

The wind industry target of 180GW by 2020 is equivalent

to supplying the electricity needs of 107 million average EU

households. Such penetration level would avoid the emission

of 328Mt of CO2 – the equivalent to taking 165 million cars off

the road – contribute 44 percent of the EU greenhouse gases

reduction target and avoid yearly fuel costs of €20.5 billion

and CO2 costs of €8.2 billion. It would also create hundreds of

thousands jobs.

“In the current context of soaring energy demand, supply

constraints, environmental degradation and climate concerns,

wind power stands at the forefront in offering immediate and

concrete solutions to the benefi t of all European citizens,”

concluded Kjaer.

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Wind Power.indd Sec1:125Wind Power.indd Sec1:125 5/9/08 11:24:325/9/08 11:24:32


EUI. In your opinion, what are the main challenges currently facing the

wind power sector? And how are you dealing with them?

Tove Feld. Renewable energy has rapidly become a ‘hot’ sector, with in-

creased interest driven by the upward march of energy prices, increas-

ing environmental awareness and energy security issues. These trends

have spurred investment in renewable energy projects, particularly

wind energy projects. However, this sector presents several technical,

environmental and fi nancial challenges that investors and developers

need to understand thoroughly in order for their businesses to be suc-

cessful. DNV offers combined expertise in appraising and evaluating

the risks and opportunities projects face, and provides a vast range

of services for developers, manufacturers and fi nanciers investing in

wind and ocean energy. We provide a clear overview of the risks and

opportunities associated with a specifi c venture. Our risk management

services cover the entire lifecycle of projects.

Andreas Reuter. Managing the supply chain to fuel the growth of the

sector seems to be the main challenge. To sort out the supply chain, we

are leveraging our forging capabilities to deal with some of the most

severe bottlenecks. We also do long-term planning and are willing to

commit on such a basis. A close co-operation with renowned suppliers

and a design that helps to avoid these bottlenecks by using standard

and proven components are additional elements of our strategy.

Adaptability to the varying environment conditions, different policy

regulations, constraints in obtaining local clearances for land to build

wind turbines in some developed countries and availability of windy

sites to increase the project viability are other areas of concern.

Our focus on specifi c markets and a turbine technology that allows

the widest fl exibility helps us to deal with this challenge. Besides this,

we co-operate with strong local partners to penetrate into different

markets and utilise their expertise.

Andy Poon. While global commitments to reduce emissions of green-

house gases have generated the need for rapid growth in wind energy

capacity over the next 10 years, the current generation of wind turbines

suffers from high rates of gearbox and bearing malfunction. Costly tur-

bine maintenance and losses in revenue and power generation are af-

fecting the entire industry, from component suppliers to operators. We

recognise that the wind energy industry needs to overcome this issue if

it is to fulfi l its huge potential.

Romax is providing innovative solutions to drivetrain issues

through a combination of an expert engineering consultancy team and

advanced simulation and analysis tools.

Taking a ‘whole system’ approach, we can design and develop

robust gearboxes and bearings that will help ensure that wind turbines

continue to be an effi cient and profi table source of low-carbon energy.

EUI. It has been reported there have been problems sourcing turbine

components at a fast enough rate. What is your experience of diffi cul-

ties in this area and how are you tackling these diffi culties?

AR. The availability of some critical components is limiting our growth.

Given the restriction of a limited volume of a couple of 100 turbines in

our company, these constraints are visible for us but still relatively easy

to handle. Kenersys is overcoming this challenge through a combined

strategy of supporting our suppliers with the delivery of forged com-

ponents through the Kalyani group, and entering into long-term supply

contracts with them. The other element to deal with this constraint is

some vertical integration in critical areas.

EU Infrastructure speaks to a panel of experts about the current challenges and future opportunities in the wind power sector.

Tove Feld is Head of Department at DNV Wind Energy

Dr Andreas Reuter is Managing Director of European

Operations at Kenersys Europe GmbH

Andy Poon is Director of Renewable Energy at Romax

Technology Limited

THE PANEL

ROUNDTABLE DISCUSSION

Wind power RT.indd Sec1:126Wind power RT.indd Sec1:126 5/9/08 11:07:375/9/08 11:07:37

Romax.indd 127Romax.indd 127 1/9/08 15:24:561/9/08 15:24:56


EUI. Safety is a key element in the production

of wind turbines. How do you make sure that

your solution is as safe as possible from project

development through to construction and main-

tenance?

AP. As an advanced simulation tool, RomaxWIND

software plays an important role in ensuring wind

turbines are fi t for purpose and safe. It enables

engineers to study all infl uences across mechani-

cal systems and provides a realistic environment

in which to design, develop and test turbine driv-

etrains. RomaxWIND refl ects how a component or

system will behave in reality, leading to a greater

understanding of turbine behaviour and the abil-

ity to accurately predict turbine safety.

The China Classifi cation Society (CCS) es-

tablished China’s fi rst certifi cation system for

wind turbines and has been working with Romax

in the development of technical standards. CCS

showed interest in our software’s ability to ac-

curately predict the behaviour of the mechanical

drivetrain and they now use Romax software to

ensure Chinese turbine designs adhere to neces-

sary safety standards.

TF. The DNV vision is to make a global impact for a safe and sustainable

future. By understanding risk and working hard to improve safety and

environmental performance, we have taken a step in the right direction.

We orchestrate these services by drawing upon specialist knowledge

and experience from our teams of engineers and surveyors from around

the globe.

DNV can provide risk assessments and independent verifi cation for

virtually all aspects of a wind energy project. Throughout the project

lifecycle, signifi cant investments are made in wind energy projects.

Providing sound technical guidance and independent advice minimises

project risks and promotes successful outcomes.

AR. Experienced staff with a long track record in the industry the highest

internal and stringent quality and safety standards, conducting training

programmes (on-site and off-site) at regular intervals to create aware-

ness among staff, proven technical concepts and the use of relevant

tools as FMEA and DFR get us there.

EUI. Wind power is often described as intermit-

tent as the wind does not blow continuously.

How do you account for the variability of the

wind and how does your solution ensure maxi-

mum effi ciency?

TF. Good environmental performance is in-

creasingly viewed as a business imperative.

This trend is evident across the energy sector

and it is spurring the development of the re-

newable energy sector. Energy production

AP. A global presence affords us excellent

contacts within the component and sub-

system supply chain, particularly in Asia. The

potential for component manufacturers in

this region is huge, given the large quantity

of natural resources and heavy industry that

already exists there, coupled with their will-

ingness to invest in manufacturing. However,

as Europe has discovered, the production of

well-designed and manufactured components

requires knowledge and expertise that is not

yet inherent in Asia.

In our capacity as a technical consultancy,

we are tackling this issue by providing com-

ponent manufacturers with the knowledge

and experience they need to supply quality

components to the global wind energy market.

Romax is transferring technology to suppliers,

advancing their capabilities and satisfying the

ever-growing demand from the wind energy

industry. This work also puts us in a unique po-

sition to be able to introduce European turbine

manufacturers to quality Asian suppliers.

TF. Due to the impressive technological pace

of the industry, new technologies are designed and type-tested

within short development cycles. In order for wind turbine manufac-

turers to demonstrate confi dence in their new wind turbine designs to

their customers, wind turbine type certifi cation is seen as a must. We

have a long track record with type certifi cation. Since the early days

of the modern wind turbine industry in the 1980s, the independent

certifi cation we provide has played an important role in minimising

the number of design errors and creating confi dence in the industry

between manufacturers, devel-

opers, owners, fi nance and

insurance companies, and

regulatory authorities.

Lately we see an in-

creased focus on qual-

ity throughout all

work processes.

“Costly turbine maintenance and losses

in revenue and power generation are affecting the entire industry, from

component suppliers to operators”

- Andy Poon

“Good environmental performance is increasingly

viewed as a business imperative. This trend is evident across the energy sector and it

is spurring development”

- Tove Field


DNV.indd 129DNV.indd 129 1/9/08 15:20:301/9/08 15:20:30


EUI. Technology is developing fast and manufacturing

is becoming cheaper. What are your thoughts on the

future of wind energy? Are there any particular tech-

nologies that you are excited about?

AR. Yes, we are quite excited about the conventional

wind turbine, which has undergone many innovations

since its birth.

AP. Romax is excited about developments in condition

monitoring and control systems as they have the po-

tential to greatly impact the reliability and maintenance

of wind turbines. The right system could aid more ef-

fi cient energy production, increase turbine availability

and reduce unscheduled maintenance – the ultimate

aim of the industry. We hope that our R&D work with other important

companies will play a part in driving forward the successful application

of this new technology.

The future of the wind energy will, in part, be shaped by the energy

policies of governments. As leading nations strive to produce energy

through more environmentally friendly means, wind energy is becoming

a crucial element of our energy mix. This in turn will see further growth

in the industry and drive technological advances in turbine design. The

effectiveness of that technology, however, is down in part to companies

such as Romax who are striving to develop a new generation of wind

turbines that will ensure the world’s clean energy needs are met.

TF. DNV Energy believes that the future

energy supplied will consist of a mix of energy

sources – with increased focus on the renew-

able energy sector. Wind energy is already

competitive and the most cost-effective of

all renewables and we expect that new tech-

nologies will bring new solutions to the wind

industry. Other renewables are foreseen to be

more competitive in the future – and undergo

an evolution similar to wind.

The move of wind energy offshore, where

the winds are stronger and the turbines less

likely to interfere with the surrounding land-

scape, involves unique technical considera-

tions during the project’s development. The

complexity of offshore wind farm projects

is large and amplifi ed by multiple key stake-

holders such as designers, manufacturers,

developers, investors and regulatory bodies,

each inevitably focusing on their own areas of

interest during project development. There is

a general awareness amongst industry stake-

holders that moving wind farms offshore rep-

resents a ‘game change’. Being offshore, the

consequences of mistakes and failures be-

comes larger – hence managing risk becomes

imperative for investors and developers.

through the use of renewable resources is continually increasing due

to the rising oil prices and the public focus on cleaner energy. Wind

technologies are evolving at a rapid pace and investors are now open

to the idea of farming the wind and waves for our future.

DNV is helping these companies contribute to a cleaner environ-

ment through a range of services. From business case development,

to assessment of environmental impact and clean development mecha-

nisms; DNV is guiding the way for stakeholders to develop a deeper

insight into reliability, safety and the technical and environmental risks

involved before these business ideas turn into business reality.

AR. Regarding turbine effi ciency next to the

specifi c design features of our turbines, we

are planning the preventive maintenance ef-

fectively during the lean wind season so as

to maximise the uptime. Through our SCADA

system we offer the possibility to run the tur-

bines as power plants. Together with partners,

we are developing integrated concepts com-

bining wind, solar and biomass to offer solu-

tions that provide economic solutions with the

required level of availability.

AP. The drivetrain of a wind turbine is constantly

infl uenced by a variety of dynamic loadings and

the mechanical drivetrain suffers the full effects

of these variable forces. We offer an integrated

environment for the design of drivetrain com-

ponents that takes into account these variable

factors and in-turn, makes our gearbox and

bearing designs signifi cantly more effective

at dealing with the real conditions in which

turbines operate. In addition, we are looking at

ways to increase energy capture from the wind

by reducing gearbox warm-up time after idling

periods. Considering all these infl uencing fac-

tors early in the design process not only saves

time and money, but leads to reliable and effi -

cient design.

“We are developing integrated concepts

combining wind, solar and biomass to offer solutions

that provide economic solutions with the required

level of availability”

- Dr Andreas Reuter

WIND INDUSTRY TARGETS FOR THE EU27 IN 2020

• 180GW installed capacity, including 35GW offshore

• Annual installations of 16.8GW, including 6.8GW offshore

• Electricity production of 477TWh, including 133 TWh offshore

• Meeting between 11.6 percent and 14.3 percent of total EU electricity demand

• 18.1 percent of total installed electricity generating capacity in the EU

• 32 percent of total new electricity generating capacity installed (2011-2020)

• Providing power equivalent to the needs of 107 million (49 percent) average EU

households

• Avoiding 328 Mt of CO2 – equivalent to taking 165 million cars off the road

• Total wind power investments of €120 billion (2011-2020)

Source: EWEA


Kenersys.indd 131Kenersys.indd 131 1/9/08 15:23:161/9/08 15:23:16


Enel is Italy’s largest power company and Europe’s

second listed utility by installed capacity, pro-

ducing, distributing and selling electricity and

gas across Europe, North and Latin America to

more than 50 million power and gas customers.

In 2007, Enel posted impressive revenues of €43.7 billion

and CEO Fulvio Conti is keen to continue the good work.

“2007 has been a transformational year for Enel,” he beams,

“particularly with the acquisition of Endesa, as well as the

Russian assets. In the next fi ve years Enel will mainly focus

on three priorities: consolidating and integrating the new

group; delivering growth from this new platform; and main-

taining a stable and secure fi nancial position.”

Having completed the sale of non-strategic assets, Enel

is actively engaged in international expansion on the power

and gas market. Enel is currently the second-largest Italian

operator in the natural gas market, operating a wide range

of hydroelectric, thermoelectric, nuclear, geothermal, wind-

power and photovoltaic power stations.

Enel is also launching a new strategic objective: to rein-

force commitment to protecting the environment. In order to

do this, the company is launching a huge investment project

for the research, innovation and development of renewable

resources. This also covers communication and information

on the environment, since the company believes that it is

possible to produce energy with contained costs, respect-

ing the environment and helping to reduce the risks of cli-

mate change.

Over the next fi ve years, Conti will be investing €7.4

billion as part of Enel’s Environment Project in the develop-

ment of renewable energy sources and for research and de-

velopment into new environmentally friendly technologies.

Of this fi gure, €6.8 billion is dedicated to develop renewa-

bles, while €600 million is for R&D projects such as high

effi ciency solar-power, off-shore wind facilities, hydrogen

applications and CO2 capture and storage.

Off-shore wind farmOne project in the pipeline will be the fi rst off-shore wind

farm in the Mediterranean. At the end of 2007, Enel’s installed

wind capacity in Italy had risen to 325MW. The target set out

in the 2008-2012 business plan is to increase this fi gure fi ve-

ENVIRONMENT & INNOVATION

PROJECTS

EU Infrastructure speaks to Fulvio Conti, CEO of Enel, one of the largest utility companies in Europe, about the new sustainable energy projects the company is embracing.

ENEL.indd Sec1:132ENEL.indd Sec1:132 5/9/08 11:03:155/9/08 11:03:15


fold, to reach about 1500MW of wind power

generated in Italy by 2012. Italy’s fi rst off-shore

facility will see the installation of 115 large gen-

erators with a capacity of between three and

fi ve megawatts in the Gulf of Gela, at least three

nautical miles off-shore, between the towns of

Licara, Butera and Gela.

The project, a joint venture between Enel

and Moncada Costruzioni, will have a total in-

stalled capacity of between 345 – 575MW at an

investment of around €500 million. The towers,

which will be equipped with rotors with a di-

ameter of about 110 metres, will be more than

100 metres tall and anchored to the sea bed in

waters up to 30 metres deep. Once fully opera-

tional, the new wind farm will generate 1150 mil-

lion KWh of power, enough electricity to meet

the needs of 390,000 households, avoiding

CO2 emissions of 815,000 metric tons per year.

“This innovative project will double

Enel’s installed capacity in the wind sector in

Italy,” says Conti. “It is an example of virtu-

ous co-operation among companies, local

institutions and environmental associations.

Enel’s commitment to renewable sources is

signifi cant and it is experiencing a continuous

and solid growth. Today, Enel’s emissions-

free generation already represents about 30

percent of the total. We believe in wind power

and we want to play a leading role in develop-

ing this energy source in Italy as well.”

Clean coal power plantEnel is also involved in clean coal plants. In

July of this year, the fi rst of three units at Enel’s

Civitavecchia power plant were unveiled. “The

Torrevaldaliga Nord power plant makes a major

contribution to diversifying the national energy

mix and to the security of supply, to reducing

emissions and to enhancing the competitive-

ness of Italy’s electricity system, in line with

the European energy policy.”

The refurbished plant will meet 50 percent

of electricity demand in Lazio, equal to about

four percent of domestic consumption. Thanks

to the use of the most advanced technologies

available the plant, which will be fully opera-

tional in 2009, will be the most effi cient in its

class and will signifi cantly reduce environ-

mental impact. Compared with the previous

oil-fi red plant, all emissions will be greatly

reduced – nitrogen oxides by 61 percent and

particulates and sulphur dioxide by 88 percent

– and through this, emissions will be 50 percent

below the stringent levels set by European

Union health and environmental legislation.

The plant, with a total capacity of 1980MW,

is composed of three units, one fewer than

the old plant. This capacity reduction will also

reduce carbon dioxide emissions by 18 percent.

Moreover, Enel is working on developing CO2

capture and sequestration through a number

of cutting-edge projects. The goal of these

projects, which are considered by the European

Commission to be among the most interesting

ones in this area, is ‘zero-emission’ fossil fuel

power generation. Through CO2 capture and se-

questration technologies, fl ue gas will be cap-

tured at the chimney and stored safely, in deep

aquifers or in exhausted methane or oil fi elds.

Photovoltaic powerIn May 2008, Enel signed a strategic part-

nership in the photovoltaic sector with Sharp.

The two partners will assess the construction

of a plant in Italy to manufacture panels using

Sharp’s triple-junction, thin-fi lm technology.

The output of the plant, whose size and struc-

ture is currently being assessed by the two

companies, will mainly go towards meeting

the rising demand for photovoltaic panels in

Italy, South Eastern Europe and the Mediter-

ranean basin.

Sharp and Enel.si, the sector-leading Enel

Group company, will develop photovoltaic

fi elds with a total capacity of 161MW by the

end of 2011. Once fully in service, the plants

will generate more than 220GWh of electricity

per year, enough to meet the needs of 81,500

households and to avoid some 110,000 metric

tonnes of CO2 emissions per year.

RENEWABLE ENERGY

Enel is one of the largest independent operators of renewable energy in the world. Capacity

includes:

North America: Enel has 470MW of hydroelectric, wind and biomass power generation and has

just signed an agreement with the company TradeWind energy to develop 1000MW of new wind

power. In March 2007, Enel, through its subsidiary Enel North America, announced the acquisition

of AMP Resources. The acquisition includes one operating and four advanced stage geothermal

development projects expected to add approximately 150MW of capacity over the next four years

to Enel’s North American operations, as well as access to a number of future opportunities.

Latin America: Enel operates 660MW of hydroelectric and wind power plants. Enel Latin

America also runs operations in the geothermal fi eld.

France: Enel has acquired Erelis, a company that has authorisations in several different fi elds

to build wind plants of up to 500MW. Moreover, it has signed a Memorandum of Understanding

with EDF to acquire 12.5 percent of the new nuclear power project European Pressurised Reactor

(EPR). Enel owns fi ve percent of the French power stock exchange Powernext and is one of the

main operators in energy trading in the country with 1000MW exchanged in 2006.

Bulgaria: Enel acquired control of one of the country’s largest power plants, Maritza East III, in

March 2003. The lignite-fi red facility has a capacity of 840MW.

Slovakia: In February 2005, Enel acquired 66 percent of Slovenské elektrárne (SE), the largest

electricity generator in the country and the second-largest in Central and Eastern Europe, with a

generation capacity of 6000MW: a mix of nuclear, thermal and hydro assets.

Romania: In April 2005, it acquired 51 percent of two electricity distribution companies: Enel

Distributie Banat and Enel Distributie Dobrogea, which supply 1.4 million customers. Further to

the acquisition of Electrica Muntenia Sud, the electricity distribution company operating in the

Bucarest area, fi nalised on 5 June 2008, Enel doubled its presence in Romania, reaching around

2.5 million customers.

ENEL.indd Sec2:133ENEL.indd Sec2:133 5/9/08 11:03:175/9/08 11:03:17


The EU’s new chemical legislation REACH (Registration,

Evaluation, Authorisation and Restriction of Chemicals)

entered into force on 1 June 2007. It covers all substances,

manufactured or imported into the EU, in quantities of one

tonne or more per year. The legislation requires manufac-

turers and importers of chemical substances to register information

on the physicochemical, health and environmental properties of their

substances and uses it to determine how

they can be used safely.

The active debate during the legisla-

tive process clearly indicated that various

stakeholders felt that the EU required a new

chemicals policy. This process also allowed

everybody to participate and infl uence the

fi nal regulation. As an outcome the new leg-

islation is balanced and realistic in the spirit

of the Commission Better Regulation initia-

tive. Therefore, REACH is not only important

in what it must achieve, but also in how it

was drafted and how the stakeholders par-

ticipated in the preparatory work.

On 1 June 2008, companies started to

submit data to the European Chemicals

Agency (ECHA) in a pre-register stage, which

will last until 1 December 2008. Companies who pre-register their

phase-in substances will benefi t from extended registration deadlines;

however, a company that fails to pre-register a phase-in substance

may neither import nor manufacture it after that date until it has fully

registered the substance with the ECHA. Low-risk substances such

as water, oxygen, noble gases and cellulose pulp are excluded from

registration. Other substances naturally occurring in nature such as

minerals, ores and ore concentrates, and cement clinker do not need

to be registered as long as they are not chemically modifi ed.

“The ECHA is aiming to co-ordinate its work on risk assessment

and risk management of chemicals with various EU bodies in the fi eld of

worker and consumer legislation, environmental and health issues, animal

welfare legislation, research and development co-operation,” says Geert

Dancet, Executive Director of the European Chemi-

cals Agency.

Implementation Co-operation and communication with all

stakeholders – including chemical and other

industries – is important for the ECHA. In many

cases it is also provided in the REACH regulation.

Chemical manufacturers and importers can be

seen as the major clients of the ECHA. They will

have to pay for the different REACH procedures

and in return they have the right to expect to get

their dossiers processed effi ciently and correctly.

The ECHA has to be also able to develop tools and

guidance that make REACH as workable for the

companies – big and small – as possible. There-

fore, dialogue with industry in the context of the

preparing and updating of guidance is essential.

“Transparency is one of the guiding principles of ECHA and we

want to promote it by various means,’ explains Dancet. “Importantly,

we launched this spring the fi rst call for expression of interest for

stakeholders to participate as observers in ECHA’s work.” Around

60 industry and interest groups (trade unions, environmental NGOs)

Reaching for successEU Infrastructure takes a look at new chemicals legislation, with Geert Dancet, Executive Director of the European Chemicals Agency.

JUNE 2008

Registration of

non-phase-in

substances start

DEC 2008Pre-registration

ends

Geert Dancet

CHEMICALS FOCUS

JUNE 2009

Candidate list

of very

high concern

REACH.indd Sec1:134REACH.indd Sec1:134 5/9/08 11:05:575/9/08 11:05:57


have observer seats on the ECHA Management Board. In the future,

stakeholders may also have access to follow committee meetings as

observers. Presentation in conferences and seminars and an infor-

mal exchange of views with stakeholders is also part of the ECHA’s

workload. “Public consultations have enabled interested parties to

participate in the work of the ECHA and to express their opinions. The

consultations take place on the ECHA website,” adds Dancet.

Enterprises have access to a lot of infor-

mation on REACH at the ECHA website – for

example, technical guidance documents,

FAQ documents, several submission manu-

als as well as IUCLID user manuals. Follow-

ing the approach that it is more effective to

“teach hungry people how to fi sh, rather

than to serve them the fi sh on a plate”, the

ECHA Helpdesk is helping the industry in

fi nding their own answers on their particu-

lar REACH obligations by “teaching fi shing

in the existing pool of information”.

TimelineFrom 1 June 2008 to 1 December 2008,

the pre-registration of so-called phase-in

substances will take place. Companies are

strongly encouraged to pre-register their

phase-in substances to benefi t from stag-

gered registration timelines. Pre-registration

requires companies to send only limited in-

formation to the agency.

Pre-registration will allow companies to get in touch with other com-

panies who are intending to register the same substance and gives them

suffi cient time to set-up Substance Information Exchange Forums (SIEF).

In a SIEF, companies are obliged to share animal testing studies to keep

the number of animals used for testing to an absolute minimum. They

may also share other data voluntarily.

By 1 December 2010, the following will have to be registered with

the European Chemicals Agency: all substances produced or imported

in quantities equal to or greater than 1000 tonnes/year; carcinogens,

mutagens and substances toxic to reproduction (CMR category 1 and

2) equal to or greater than one tonne/year; and substances classifi ed

as very toxic to aquatic organisms (R50/53) at and above 100 tonnes/

year. On 1 June 2013, all substances produced or imported in quantities

equal to or greater than 100 tonnes/year will need to be registered as

substances produced or imported in quantities equal to or greater than

one tonne/year by 1 June 2018. Manufacturers and importers not having

registered substances in time according

to the appropriate volume levels will

no longer be able to manufacture in or

import that substance to the EU market.

Non-phase-in substances need to

be registered before they are manufac-

tured or imported. Their registration

will start on 1 June 2008. Substances in

articles, that are on the candidate list

of substances of very high concern, will

need to be reported to the European

Chemicals Agency from 1 June 2011.

Challenges“The major goal set for ECHA was to

make it ready for the entry into operation

of REACH on 1st June 2008, and we were

successful in reaching this objective,”

says Dancet. “On 1 June the main provi-

sions of REACH entered into operation,

and the companies were able to begin to

submit their pre-registrations, enquiries, registrations and notifi cations

and thus fulfi ll their legal obligations.”

In the second half of 2008, the main focus will be on successful pre-

registration and registration management, including completion of the

IT tools. The recruitment will continue on a high level. About 180,000

pre-registration fi les are expected to be received before December. At

the same time, from 1 June 2008, companies started sending notifi ca-

tions, enquiries and registrations. By end of the year over 2000 research

and development related notifi cations, enquires on substances and

registrations may arrive in total.

DEC 2010

JUNE 2013

JUNE 2018

Registration of

phase in substances

>1000t or classifi ed

as R50-53 > 1000t,

CRMs 1 and 2 >

1t. Notifi cation of

phase-in substances

in products starts

Registration

of phase-in

substances > 100t

Registration

of phase-in

substances > 1t

FAST FACTS

• 30,000 chemicals will have to be registered over 11 years

• It is estimated that the cost to the industry will be between €2.8- 5.2 billion

• Savings of €54 billion over 30 years are expected as fewer people fall ill from exposure to chemicals

• The EU’s chemical industry produces 31 percent of the world’s chemicals

• The industry employs 1.7 million people



“As with any major project such as REACH, teething problems are

unavoidable, particularly as we enter into the operational part of the

system from 1 June 2008. But such problems will be overcome and we

can expect to see real progress as more substances are phased-in to

the system.”

And it’s not just Europe that has the potential to benefi t from the

REACH regulation. “Already now we can say that REACH has set a vast

process in motion. In Europe and other parts of the world, manufactur-

ers, importers, downstream users are getting ready for the European

standard on chemicals safety,” explains Dancet. “Countries outside the

European Union take keen interest in the REACH legislation, its obliga-

tions and in our experiences. There is great potential to export our stand-

ard to the rest of the world thanks to the tools we have developed.”

FutureThe benefi ts of REACH to consumers will rise from improved infor-

mation on chemicals during their entire lifecycle and the more detailed

assessments carried out by companies on dangerous chemicals, lead-

ing to better safety instructions for users and, ultimately, for consum-

ers. Some uses will also be restricted or banned for safety reasons. The

consumer will also have access to more information on the properties of

chemicals (e.g. the public information on the agency website). Consum-

ers will be better informed, less exposed to and better protected from

dangerous chemicals. In addition, REACH introduces a duty to commu-

nicate information on substances in articles, especially with regard to

very toxic chemicals. The use of that category of chemicals will also be

subject to the authorisation procedure, leading ultimately to much more

limited risks for consumers or complete substitution of the chemical.

“An effective co-operation between ECHA,

other EU institutions, the member states, other

institutional partners and involved stakehold-

ers is vital for the success of REACH,” stresses

Dancet. “But we are confi dent that together we

will manage the tasks and achieve its objectives:

high level of protection of citizens and the environ-

ment, creation of a safe management of chemicals

and a shift in testing methods.”

The next big challenge is 2010. ECHA will have

the fi rst registration deadline for the high volume

substances and the very hazardous ones. By that

date, all the companies need to present all the in-

ventory documentation for the classifi cation and

labelling of any dangerous substances.

AdvantagesThe main benefi t of REACH is that the hazards

and risks of chemicals will be more systematically

identifi ed. This will allow for more effective risk

management measures by industry and more

speedy regulatory action by the public authorities

where required. This should contribute to the pre-

vention of health problems caused by exposure

to chemicals, leading to a lower occurrence of

diseases and preventable deaths, and, with that,

lower costs for the national health systems. The benefi ts will come

gradually as more and more substances are phased into REACH and the

necessary risk reduction measures are taken on the basis of the data

gathered. This should also benefi t consumers who will have access to

more information on the hazards and risks of chemicals.

The European chemicals industry will benefi t from a single EU

regulatory system, a decision-making system with clear deadlines,

and more consumer confi dence in their products. A positive impact

on innovation is also expected, as industry will have incentives to

develop safer substances and technologies. REACH will also intensify

the communication within industrial supply chains, allowing closer

relationships between suppliers and customers. Suppliers will better

understand the needs of their customers. Downstream users of chemi-

cals will get relevant information on the safe use of the chemical sub-

stances they use in their production processes, which will help them to

ensure better protection of their workers.

ECHA MISSION

The mission of the European Chemicals Agency is to:

• Manage and carry out technical, scientifi c and

administrative aspects of REACH

• Ensure consistency at community-level in relation to

these aspects

• Provide the member states and the institutions of

the community with the best possible scientifi c and

technical advice on questions relating to chemicals

that fall under REACH

• Manage IT-based guidance documents, tools and

databases

• Support national helpdesks and run a helpdesk for

registrants

• Make information on chemicals publicly accessible

“As with any major project such as REACH, teething problems are unavoidable but such problems will be overcome and we can expect to see real progress as more substances are phased-in”


LGiris.indd 137LGiris.indd 137 3/9/08 08:12:243/9/08 08:12:24


IN FOCUSNew wind technology prototype A father with a dream to design a wind turbine that could be made usingscrap materials has been beaten to it by his son.

could run lighting for 63 hours or a radio

for about 30 hours.

“This isn’t going to change lives in the

developing world dramatically but a de-

vice like this could make their lives a lot

easier. It cost me UK£20 to build the pro-

totype and in the developing world it

would be a lot less. The nearest alterna-

tive wind turbine on the market costs

UK£2000.” �

138Max Robson, a product design stu-

dent at the University of

Portsmouth, has designed a wind

turbine made from 100 percent recycled

materials and easily built by unskilled

workers in less than a day, anywhere in the

world. The 22-year-old has never set foot in

a developing country but he now hopes to

change that. He wants to take his idea to aid

organisations in the Third World to develop it

further, as well as see first-hand conditions in

some of the world’s poorest countries.

Robson’s design converts kinetic energy

in wind into electrical energy stored in a bat-

tery and has been designed it so it could be

made from a wide variety of scrap found local-

ly. “My dad wanted to do something like this

but I beat him to it,” he says. “He had the idea

of designing a scrap wind turbine but it was

my idea to use it in the developing world. I

wanted to design and build something worth-

while and I am also interested making environ-

mentally friendly design.”

Robson has designed the wind turbine to

be affordable, sustainable and help those in

the poorest parts of the world. His proto-

type was built using scrap found on road-

sides and in front gardens. Robson has just

been awarded a first class honours degree

in product design and modern materials

from the Department of Mechanical and

Design Engineering.

His father had once mentioned he would

like to come up with a sustainable and cheap

form of energy production but Robson took the

seed of the idea further and developed a product

for his final project. “I’m interested in everything

from nanotechnology to traditional technologies

and the course has equipped me to use both old

and new. The wind turbine I have designed is 1.8

metres wide so it isn’t too much of a burden on

the surrounding environment,” he explains.

“The prototype generates 11.3 watts and

charges a battery, which when fully charged

GLOBAL WIND POWER CAPACITY REACHES 100,000 MEGAWATTS

In 2007, wind power capacity increased by a record-breaking 20,000

megawatts, bringing the world total to 94,100 megawatts – enough to satisfy

the residential electricity needs of 150 million. In March 2008, global installed

wind power capacity topped 100,000 megawatts. Driven by concerns

regarding climate change and energy security, one in every three countries

now generates a portion of its electricity from wind, with 13 countries each

exceeding 1000 megawatts.

Germany is still the frontrunner in total installed wind power capacity, with

22,200 megawatts, but in 2007 it lagged behind the US, Spain, China and

India in terms of new capacity added.

“This isn’t going to changelives in the developing worlddramatically, but a devicelike this could make theirlives a lot easier”

In Focus:bmus 5/9/08 11:14 Page 138


Hot, Flat and CrowdedWhy the World Needs a Green Revolution, by Thomas L. Friedman

Thomas Friedman’s bestseller The World Is Flat has helped millions of readers to see globalisation in a new way.

Now Friedman brings a fresh outlook to the crises of destabilising climate change and rising competition for en-

ergy – both of which could poison our world if we do not act quickly and collectively. Friedman proposes that an

ambitious strategy (which he calls Geo-Greenism) is not only what we need to save the planet from overheat-

ing; it is what we need to make us all healthier, richer, more innovative, more productive and more secure.

EU Infrastructure says: Hot, Flat and Crowded is classic Friedman – fearless, incisive, forward-looking and

rich in surprising common sense about the world we live in today. Friedman assesses the state of the world

environment and states what we should be doing to stop it getting worse.

TrafficWhy We Drive the Way We Do, by Tom Vanderbilt

Why does the other lane always seem to be moving faster? Why are people so different inside their cars than

they are outside them? Is traffic a microcosm of society, or does the road make its own rules? Traffic speaks vol-

umes: it brings together people from every walk of life and, in this hugely enjoyable, curiosity-filled book, Tom

Vanderbilt explains why traffic problems are really people problems. Traffic shows that how we behave walking

the streets, on our bikes and in our cars is actually an astonishing cultural indicator and a living, constantly sur-

prising model of what physicists call ‘emergent collective behaviour’.

EU Infrastructure says: Vanderbilt chauffeurs us through why it’s so hard to pay attention in traffic, which

bumper stickers can get you in trouble with the police, what factors make us more likely to honk our horns and

a host of other eye-opening highway conundrums.

The Big NecessityAdventures in the World of Human Waste, by Rose George

Produced behind closed doors, disposed of discreetly, hidden by euphemism, human waste is rarely out in the open

in ‘civilised’ society, but the world of waste is a rich one. This book takes the reader underground to the sewers of

Paris and London, and overground to meet the heroes of India’s sanitation movement, the R&D lab-rats at the cut-

ting edge of toilet technology and the owner of the world’s largest toilet paper collection. With a journalist’s nose for

a story and a campaigner’s desire for change, Rose George also addresses the politics of this under-reported so-

cial and environmental effluent, and the devastating humanitarian consequences of our reluctance to talk about it.

EU Infrastructure says: George provides an eye-opening tour through the world of sewage – the single biggest

cause of death worldwide, and our last remaining taboo. Witty, serious and original, The Big Necessity proves

that shit doesn’t have to be – and shouldn’t be – a dirty word.

Better ways to liveFrom transport to waste management via climate change andsustainability, EU Infrastructure reviews the best of this quarter’sbusiness book releases.140IN REVIEW

Book Review Ed P140:aug08 5/9/08 11:08 Page 140

FIlterClear.indd 141FIlterClear.indd 141 1/9/08 15:21:281/9/08 15:21:28


THE BIG DEBATELondon’s Olympic StadiumNow that the Beijing Games are over, attention turns to 2012. But havethe architects of the London stadium captured the public imaginationwith their design?

My problem with the plans is threefold. First of all: the de-

sign itself. When London won the bid, it was based around

an exciting centrepiece that seemed to spring forth from

the landscape like some vital, breathing life form; the stadium was

wrapped in a muscle-like roof structure that gave it an organic ap-

pearance and made it genuinely feel like the vibrant, beating heart

of the Olympic project. And yet this visionary blueprint has now been

cast aside and replaced with a design that looks like a piece of flat-

pack furniture. Hardly the inspirational setting we were all promised

in the euphoria that swept London to victory in the bidding process.

Secondly, I have a problem with the cost. A minimum of UK£496

million for what will ultimately be a 25,000-capacity arena? That’s just

crazy. Arsenal Football Club recently built a state-of-the-art, 60,000-

seater arena for a fraction of that cost; the new 90,000-capacity

Wembley was completed only a few years back and has been hailed a

masterpiece of stadium design. If the planners were really committed

to sustainability, they would have found a way to better synchronise

the Olympic vision with one of these fantastic facilities. I acknowledge

the need for a dedicated athletics arena, but not at that cost. Wasting

public money is not my idea of responsible development.

Most of all, however, I see it as a wasted opportunity. The

Chinese authorities used the world’s biggest sporting event as a

chance to showcase the country’s ability to deliver jaw-dropping ar-

chitecture projects on-time whilst single-mindedly communicating

a clear vision. Already, the London project feels like the offspring of

muddled thinking and poor public planning.

142

NO BEN THOMPSONYES REBECCA GOOZEE

It is a great design – functional, beautiful and sustainable. After

the architectural excesses of the Beijing Games, the simple bowl-

like structure provides a welcome dose of restraint and sophisti-

cation and could be the perfect antidote to the showy Bird’s Nest.

Classic design comes from functionality, not aesthetics.

The idea behind the new stadium is sustainability, particularly fo-

cusing on the use of the stadium after the Games. The current designs

focus on functionality and flexibility, and idea of a ‘detachable’ stadium

is brilliant – already, the Chicago 2016 bid has expressed an interest in

reusing elements of the London build in their design and are making sus-

tainability a key theme of their designs. And while critics are quick to

point the finger at lazy and uninspiring architecture, they are missing the

point. It’s an imaginative and innovative concept that is completely orig-

inal and takes the Olympic vision to a new level – from London onwards,

every bid will need to consider the re-usable aspects of their plans.

There is no need for another 90,000-seat stadium. We’ve al-

ready got Wembley and numerous other high-capacity arenas for

big, one-off events. But we do require an athletics venue, which is

exactly what the new stadium will provide, as well as a home for

other sporting, community and educational events. There is no need

for an 80,000-seat athletics venue; 25,000 will do just fine thanks.

No athlete wants to compete in an arena at 20 percent capacity, and

no contractor wants to run a venue that isn’t being used – do we

want a repeat performance of the Millennium Dome? So let’s em-

brace new ideas, embrace sustainability, and look forward to a last-

ing sporting legacy for the athletes of tomorrow.

What do you think? Email us with your views – we’d love to hear your feedback.

FACE OFF:23 APR07 5/9/08 11:13 Page 142

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CATALOGUE INFRA:sep08 5/9/08 10:52 Page 143

www.euinfrastructure.com144

tion and in urgent need of modernisation.

Substantial parts of the available EU cohe-

sion and structural funds will be allocated to

these countries. Investment continues to be

directed chiefly towards upgrading the inter-

national transit corridors. The major part of

investment in these countries will be main-

taining and improving the existing networks,

but there will also be a need for investment

in new railway lines in these and other coun-

tries in Europe depending on the develop-

ment of new regions.

Due to considerable investment over the

last decade, there are many companies oper-

ating on the European railway market in tech-

nical consulting services. The market

expansion is also based on the outsourcing

and divestment of services from national rail-

way administrations. This has created strong

players in several countries, which are looking

to the international market more and more.

WSP is one of these – hopefully one of the main

players on the European rail market during the

coming decades. WSP has a lot of experience

in planning, design and maintenance manage-

ment in the rail sector. In its 30-year history,

WSP has been the lead engineering consultant

on many landmark projects. We are large for a

simple reason: it enables us to offer clients sev-

eral advantages. Large scale means we have

experts in many diverse disciplines and we can

therefore offer services to cover every phase of

a project, from early pre-studies, enquiries and

planning through to design, construction and

management. In one organisation, we have en-

gineers, landscape architects, planning archi-

tects, surveyors, geologists, urban planners

and experts in many other disciplines. We can

form teams of people who have already suc-

cessfully worked together many times before

and achieved superb results. This saves time

and money – efficiencies we pass on to clients

enabling them to achieve more for less. �

144T

he European railway business is

undergoing fundamental struc-

tural change. After a century of

national monopolies, the market

has opened up for international

competition. Former national railway ad-

ministrations are split into traffic operators,

infrastructure managers, maintenance com-

panies, regulators etc. A major driving force

is the European Union, using a combination

of legislation and funding.

The railway market in Europe continues

to be strong. The driving forces are often po-

litical, with the objective to reduce pollution

and traffic congestion or risk changes in the

climate. The railway is one of the most impor-

tant means for a sustainable transport sys-

tem. The ongoing enlargement of the

European Union requires integration of the

new member states in many areas, transport

infrastructure being one of the most impor-

tant. Substantial grants and funds from the

EU budget are directed towards railway pro-

jects, and investments are mainly focused on

railway corridors that will make up a modern

European transport network. Among the new

member states, Poland, Hungary and Czech

Republic have the most advanced plans for

their railways and the best chance of projects

being realised. Romania and Bulgaria also

look promising since their networks are cur-

rently in a very bad state and therefore will be

a high priority. The railway is a very efficient

and environmentally friendly way of trans-

porting people and freight, which means that

railways are the future transport system.

The EU has declared railways to be one of

the most important means for a sustainable

transport system in the common market. The

decline in railway freight in Western Europe over

several decades has now stopped and the mar-

ket share of railway transport has stabilised and

is growing in some segments. Railway passen-

ger transport is currently competing successfully

with road and air on medium distances with mod-

ern, comfortable, high-speed trains. Around major

congested cities commuter trains are increasing

their market share. The main reasons to develop

more ‘sustainable transport’ systems are that sus-

tainability is in many cases more economic (the rail-

ways are less energy consuming than other

transport systems) and that the users require it.

The railways in many of the new member

states in the EU are generally in very bad condi-

FINAL WORDInvestments in sustainable travelEskil Sellgren, Deputy Managing Director at WSP, looks at theimportance of the European railway system to the sustainabletravel industry.

“The railway is a veryefficient and environmentallyfriendly way of transportingpeople and freight, which

means that railways are thefuture transport system”

Final Word_WSP Ed P144:feb08 5/9/08 11:44 Page 144

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