Mega Reclamations - CEDA conferences

Mega Reclamations Opportunities and Challenges

By: Jan Schaart Van Oord Dredging & Marine Contractors

CEDA Conference on Dredging and Reclamation6th-7th May 2008

Doha Exhibition Centre, Doha, Qatar

Subjects

• Reclamation records

• Developments

• Where will we live in 2050?

• Reclamation pays

• Conclusions

1. Reclamation records

Reclamation records

• First in countries:

– with a high population density

– with a strong economic growth

– where coastal land was scarce

– where reclamation was technically feasible

– with long term ‘vision’

• Examples: The Netherlands, Singapore, Hong Kong, Japan, USA

and recently Dubai

Reclamation records, the Netherlands

• More than 10 centuries of sea defence history

• At first reclamations for flood protection and flood control

• Since 17th century the construction of Polders

• In recent history reclamation with the use of marine fill

• Reclamation for agriculture, housing, industry and infrastructure

• A total of 2270 km2 added (7% of total land area)

• Extension Port of Rotterdam, Maasvlakte 2, will add another 10

km2

If there were no sea defences

Reclamation records, Singapore

• Started in 1965 and never stopped

• For (air)ports, housing, industry and recreation

• Total 97 km2 (18% of total land area)

• First landfill, later marine

• In total 2 billion m3

• Still 1.0 billion m3 marine fill to go

• Most famous projects Changi, Jurong, TUAS

Singapore land reclamations

Reclamation records, Hong Kong

• Demand for space for housing, industry and infrastructure

• Total 60 km2 (6% of total land area) added

• Before 1980, landfill

• Later marine fill

• Most famous CT 8 and 9, Penny’s Bay and Chek Lap Kok airport

Reclamation records, Dubai

• Development of a sustainable economy

• Based on vision of Ruler Sheik Mohammed of Dubai

• Major land reclamations started in 2001 (first Palm Jumeirah)

• Space for housing, industry and infrastructure and leisure

• Reclamation at a unprecedented scale and speed

• A total of 27 km2 has been added already

• An additional 65 km2 will be reclaimed (current projects)

• New mega developments on drawing board

Reclamations in Dubai

• Palm Jumeirah• Logo Islands • The World• Dubai Beaches

• Port Rashid• Palm Deira• Deira Islands• Rock transport

Van Oord projects

Palm Jumeirah

Sand volume: 110 mln. m3Start: late 2001Completed: late 2004

The World

Total area : 9 X 7 kmIsland size : 1.6 – 5.4 haSand volume : 325 mln. m3Rock volume : 32 mln. tonsLength breakwater : 25 kms

Area : 7 x 9 kmSand volume : 325 mln. m3Rock volume : 32 mln. tonsStart : Sept. 2003Completed : End 2007

Dubai Maritime City – Port Rashid

2 km2 island for marine industrySand: 32,5 mln. m3Start: April 2003Completed: Nov. 2006

Palm Deira, the largest ever

Afmeting : 8 X 13 kmOppervlakte : 25 km2Zandvolume : 700 mln. m3Steenvolume : 110 mln. tonProjectduur : 8 jaarWaarde : 2.5 miljard €

Sand volume :1200 mln m3

Rock volume :150 mln tons

Area : 9 x 13 kms

Start : 2006

Completion : 2014

2. Developments of the world dredging market

World dredging market in 2007

• World dredging market ± 12 billion Euro

• Including dredging market related activities

• Only 65% of world market is ‘open’

• Market share Van Oord 20% (of open market)

Dredging market ‘drivers’

Demand for maritime

infrastructure

Demand for maritime

infrastructure

DemographyDemography

EconomyEconomy Climate change Climate change

EnergyEnergyTourismTourism

Results long term market analyses

• LT market analyses show rising demand for:

– New or larger and deeper ports

– New, reclaimed land for living, working and recreation

– Cruise terminals and beaches

– Airports (in sea)

– Oil and gas projects, LNG terminals

– Coastal and river defence

• All drivers contribute to growth dredging and marine

construction market

3. Where will we live in 2050?

Where will we live in 2050?

• World population has grown from 2.5 billion in 1950 to 6.5

billion today

• It will rise to 9 billion in 2050

• Migration from rural to urban will continue

• People love living next to water

• 80% of large cities are in coastal zones

• In 2050 twice as many people will live, work and recreate in

coastal areas (100 km strip)

• Coastal land will become more scarce

• Therefore land prices in coastal cities are expected to rise

World wide migration from rural to urban

Effects of climate change

• A change of climate cannot be longer denied

• Sea levels will rise for sure

• Low lying areas will be at risk if not properly protected

• Puts further pressure on coastal areas

• It is time to act

• The dredging world is there to help

4. Reclamation pays

The cost of reclamation

Cost of reclamation depends on:

• Removal unsuitable mud layers

• Sailing distance to disposal area’s

• Sailing distances to sand borrow areas

• Costs of dredging licences / permits

• Depth of the area to be filled

• Quality of fill material

• Wave and wind climate

But also on,..

• Available construction time

• The availability of modern dredging equipment

• The production capacity of dredging equipment

• The quality of the contractor

• The level of partnering with the client

Ever increasing productions / week

0250000500000750000

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1990 1992 1994 1996 1998 2000 2002 2004

Year

Av.

Pro

d. p

er w

k..

Economy of scale (volume versus m3 costs)

Large reclamation projects, costs of fill / m2

€40

€80

€120

€160

€200

€240

0 50 100 150 200 250 300 350 400 450 500 550Volume in million m3 sand/gravel fill

Size of bubble: project volume in million m3 marine fill

The cost of reclamation

• Larger, more efficient dredging equipment makes mega projects

possible

• Size (of reclamations) really matters

• Historic dredging fill costs ‘always’ below € 140 per m2 !!

• Add ± 40% for seawall / rock protection

• Add ± 10% for soil improvement / compacting

• Total reclamation costs usually below € 250 per m2 !!

Current seafront land prices per m2

City Range of land prices (2006) in € / m2

Hong Kong 19,500 – 31,400

Singapore 4,600 – 6,200

Dubai 1,785 – 4,150

Tokyo 1250 (average)

Rotterdam 485 – 625

Cost of reclaimed land < 250 (incl. revetment and compacting)

5. Conclusions

Conclusions

• Reclamation are getting - economically and technically - more and

more feasible

• Due to larger dredging equipment and innovations prices of

reclamation has gone down

• Very high productions can be achieved (up to 3 million m3 per week)

• Reclamation can be designed for sea level rising

• Early ‘partnering’ with dredging contractor will help client / developer

to optimize design and execution

• Therefore: ‘reclamation pays’

Van Oord: a sea of opportunity

Thank you for your attention