1 DEME annual report 2013 Creating land for the future
3 Working towards a sustainable future is part of the way we do business. We care a great deal about the health, safety and well-being of our people and all those affected by our operations. We are committed to the protection of the environment and we aim to integrate sustainable and innovative thinking and corporate social responsibility into all our business relationships and processes.
5 contents 04 GENERAL INTRODUCTION message of the board 06 general management 08 financial highlights 10 group structure MULTIDISCIPLINARY DREDGING AND MARINE SOLUTIONS 16 DREDGING SOLUTIONS dredging and land reclamation DREDGING PLUS SOLUTIONS activities for offshore energy, oil & gas companies and mining 44 engineering and construction 44 maintenance for oil & gas, and offshore energy 54 environment: soils, silt and water 58 offshore harvesting of aggregates and minerals 64 terminal services DEME CONCESSIONS dredging and land reclamation 70 offshore wind 72 wave and tidal energy 74 offshore mineral resources SAFE AND SUSTAINABLE SOLUTIONS people and values 80 health and safety 86 climate and environment 90 corporate social responsability 92 innovation 94 project finance 98 quality, productivity and cost-efficiency GENERAL INFORMATION DEME s fleet 106 DEME s presence worldwide 108 DEME s offices worldwide 110 3
7 general introduction message of the board general management financial highlights group structure 5 general introduction
8 Slowly the world economy is climbing out of a harsh recession. Global growth is in low gear and the drivers of activity are changing. Emerging markets face slowing growth and advanced economies are recovering slightly. For DEME, 2013 has turned out to be a year of growth, strengthening its position and turnover on the national and international markets thanks to a multidisciplinary and innovative approach to markets and clients and a strategy of geographical spread of its activities. The turnover in 2013 increased by 32% to a record of EUR 2.53 billion and DEME s order book stayed at a high level of EUR 3.05 billion. Next to its West-European home market, DEME maintained a high level of activity in Europe, the Middle East, Australia, Africa, Latin America and the Indian Subcontinent. Massive ongoing projects each of approximately USD 1 billion in Australia and in Qatar for port infrastructure and oil and gas infrastructure confirm DEME s prominent position in these markets. Specialized marine and offshore engineering companies GeoSea, Tideway and Scaldis saw business expanding owing to a rapidly growing renewable energy market and further oil and gas related developments on several continents. Environmental specialist DEC managed to maintain its position in a challenging and competitive environment.
9 message of the board Diversification in the real sense Over the next few years, the Group wishes to consolidate its position in its existing and future core markets, which include Europe, Singapore, India, Qatar, Australia and Nigeria, but also countries like Brazil and Russia. DEME strives to build partnerships with strong local companies and specialist civil contractors, so it can offer a complete package of expertise in the highly specialised disciplines of marine, fluvial and port construction. A part of this strategy will be the further strengthening of the cooperation between DEME and CFE in the Benelux and in niche-markets where CFE has added value. DEME further deploys its state-of-the-art, highly competitive and versatile fleet in all markets where there are opportunities. The Group is committed to developing its specialist activities, which include services to the offshore oil & gas production industry and offshore (renewable) energy sector, underwater foundations, the extraction of seabed aggregates (including sand, gravel and minerals) and services which lead to a cleaner environment (soil, silt and water treatment). DEME will further develop new solutions and innovative equipment for the construction of offshore grids and for the maintenance, refurbishment or removal of offshore installations. DEME is able to offer global solutions, ranging from financing to engineering and turnkey construction capacity including maintenance. To fulfil our customers requirements, the Group will invest in green and blue energy, offshore harvesting of minerals, project finance and concessions, and competence centres in order to be able to execute complex EPCM-contracts (Engineering, Procurement, Construction, Maintenance). DEME is also streamlining its internal organisation in order to realise its ambitious growth plans. Two programmes to optimise the Group s cost structure DRIVE and LESS IS MORE have been introduced and are already leading to positive developments. Additionally, even more attention is being devoted to project-life risk management from award to delivery and all projects worldwide will be financially monitored on a monthly instead of a quarterly basis. DEME reaffirms its commitment to adhering to the strictest safety, quality, environmental and compliance requirements in all countries where the Group is active and will continue to spearhead its no incident policy. Luc Bertrand Chairman of the Board of Directors Renaud Bentégeat Director Alain Bernard Chief Executive Officer general introduction message of the board 7
10 PUBLIC 12,11% 60,39% 27,5% 100%
11 general management board of directors Luc Bertrand CHAIRMAN OF THE BOARD OF DIRECTORS Renaud Bentégeat MANAGING DIRECTOR CFE Philippe Delaunois, Lode Franken, Koen Janssen, Jan Suykens, Marc Stordiau management team 01 Philip Hermans 10 Pierre Potvliege AREA DIRECTOR NORTH AMERICA, OCEANIA, ASIA AREA DIRECTOR INDIAN SUBCONTINENT GENERAL MANAGER DREDGING INTERNATIONAL 11 Theo Van De Kerckhove 02 Els Verbraecken CHIEF OPERATIONS OFFICER CHIEF FINANCIAL OFFICER 12 Tom Lenaerts 03 Eric Tancré CHIEF LEGAL OFFICER AREA DIRECTOR NORTH EUROPE 13 Harry Mommens 04 Hugo Bouvy HUMAN RESOURCES MANAGER GENERAL MANAGER TIDEWAY 14 Luc Vandenbulcke 05 Lucas Bols DEPUTY C.O.O. DEME AND GENERAL MANAGER TIDEWAY MANAGING DIRECTOR GEOSEA 06 Martin Ockier AREA DIRECTOR BENELUX 07 Christel Goetschalckx SECRETARY TO THE MANAGEMENT TEAM 08 Dirk Poppe AREA DIRECTOR MIDDLE, EASTERN EUROPE AND RUSSIA 15 Pierre Catteau AREA DIRECTOR MEDITERRANEAN, SOUTH AND MIDDLE AMERICAS 16 Lieven Durt AREA DIRECTOR AFRICA 17 Bernard Paquot AREA DIRECTOR MIDDLE EAST 09 Alain Bernard CHIEF EXECUTIVE OFFICER 9 general introduction general management
12 GROUP FIGURES* (IFRS) Turnover EBITDA EBIT Gross profit (before taxation) Net profit (share of the group in the result) Cash flow (net profit and depreciation and non-cash items) Shareholders equity (incl. minority interests) Total net financial debt Return on equity ,532 1, ,10% 12,20% EVOLUTION OF NET INCOME, EBIT AND EBITDA* net income EBIT EBITDA EVOLUTION OF TURNOVER*
13 financial highlights DEME CONSOLIDATED TURNOVER PER ACTIVITY % capital dredging maintenance dredging fallpipe and landfalls environmental contracting marine works DEME CONSOLIDATED TURNOVER PER REGION % Europe - EU Europe - Non EU Middle East India, Pakistan Africa America Asia and Oceania EVOLUTION OF EQUITY VERSUS DEBT* net financial debt equity (excl. minority interests) * in mio Euro general introduction financial highlights 11
14 multidisciplinary dredging and marine solutions dredging solutions DREDGING AND LAND RECLAMATION BAGGERWERKEN DECLOEDT & ZOON NV BAGGERWERKEN DECLOEDT & ZOON ESPAÑA SA DRAGAGEM ANGOLA SERVIÇOS LDA DRAGAMOZ LDA DREDGING INTERNATIONAL NV and its worldwide branches. DREDGING INTERNATIONAL (AUSTRALIA) PTY LTD DREDGING INTERNATIONAL (BULGARIA) SERVICES EOOD DREDGING INTERNATIONAL (CYPRUS) LTD DREDGING INTERNATIONAL (LUXEMBOURG) SA DREDGING INTERNATIONAL (UK) LTD DREDGING INTERNATIONAL ASIA PACIFIC PTE LTD (DIAP) DREDGING INTERNATIONAL ESPAÑA SA DREDGING INTERNATIONAL INDIA PVT LTD DREDGING INTERNATIONAL MÉXICO SA DE CV DREDGING INTERNATIONAL SAUDI ARABIA LTD DREDGING INTERNATIONAL SERVICES NIGERIA LTD DREDGING INTERNATIONAL SERVICES (CYPRUS) LTD DREDGING INTERNATIONAL SOUTH AFRICA PTY LTD DRAGABRAS SERVIÇOS DE DRAGAGEM LTDA DREDGING INTERNATIONAL DE PANAMÁ SA (DIPA) DREDGING INTERNATIONAL UKRAINE LLC FAR EAST DREDGING LTD (FED) INTERNATIONAL SEAPORT DREDGING PTY LTD (ISD) NORDSEE NASSBAGGER- UND TIEFBAU GMBH MIDDLE EAST DREDGING COMPANY QSC (MEDCO) MORDRAGA LLC SOCIETA ITALIANA DRAGAGGI SPA (SIDRA) SOCIETE DE DRAGAGE INTERNATIONAL SA (SDI) SOCIETE DE DRAGAGE LUXEMBOURG SA
15 group structure dredging plus solutions DEME concessions ACTIVITIES FOR OFFSHORE RENEWABLES AND FOR OIL, GAS AND MINING COMPANIES ENVIRONMENT: SOILS, SILT AND WATER ACTIVITIES FOR DEME CONCESSIONS FLIDAR NV GEOSEA NV GEOSEA (LUXEMBOURG) SA GEOSEA AUSTRALIA PTY LTD HGO INFRASEA SOLUTIONS GMBH & CO. KG HIGH WIND NV MARITIME SERVICES & SOLUTIONS SA NORMALUX MARITIME SA OCEANFLORE BV OWA NV SCALDIS SALVAGE & MARINE CONTRACTORS NV TIDEWAY BV TIDEWAY (LUXEMBOURG) SA DEME ENVIRONMENTAL CONTRACTORS NV (DEC) DE VRIES & VAN DE WIEL BEHEER BV ECOTERRES SA ECOTERRES HOLDING SA EXTRACT-ECOTERRES SA FASIVER CVBA GRC ZOLDER NV GROND RECYCLAGE CENTRUM NV (GRC KALLO) KALIS SA PURAZUR NV SEDISOL SA SILVAMO NV TERRANOVA NV TERRANOVA SOLAR NV TERRAMUNDO LTD BLUEPOWER NV B-WIND POLSKA SP. Z.O.O. C-POWER NV C-POWER HOLDCO NV C-WIND POLSKA SP. Z.O.O. DEME CONCESSIONS NV DEME BLUE ENERGY NV (DBE) MERMAID NV OTARY RS NV NV THORNTON NV RENEWABLE ENERGY BASE OSTEND NV (REBO) RENTEL NV SEASTAR NV OFFSHORE HARVESTING OF AGGREGATES AND MINERALS CBD SAS DEME BUILDING MATERIALS BV DEME BUILDING MATERIALS LTD DEME BUILDING MATERIALS NV (DBM) OAM-DEME MINERALIEN GMBH TERMINAL SERVICES COMBINED MARINE TERMINAL OPERATIONS WORLDWIDE NV (CTOW) 13 general introduction group structure
17 multidisciplinary dredging and marine solutions DREDGING SOLUTIONS 16 DREDGING PLUS SOLUTIONS 42 DEME CONCESSIONS multidisciplinary dredging and marine solutions
19 dredging solutions dredging and land reclamation 17 multidisciplinary dredging and marine solutions dredging solutions
20 Securing access for economic growth 2013 has been a very busy year in the Benelux area, with the full range of dredging and supporting activities. DEME s home market has always served as the developing and testing ground for new technologies. We have seen continuous efforts in the R&D departments. Europe & Russia BELGIUM In Belgium, maintenance dredging works continued on the river Scheldt and in the access channels to the Antwerp locks, in the busy shipping lanes off the Belgian coast towards the Ports of Ostend, Zeebrugge and the river Scheldt, and along the Belgian coast in the inner marinas of Ostend, Zeebrugge and Blankenberge. All of these contracts involved the use of several hopper dredgers, small specialised cutters, sweep beams and the latest launched backhoe dredger. As part of their work in the marinas, Dredging International (DI) and Baggerwerken Decloedt executed some additional works, involving the dredging of contaminated sediments at the Zeebrugge fishing port. The treatment of this dredged material was performed by DEME Environmental Contractors (DEC). The Ghent-Terneuzen Canal was subject
21 dredging and land reclamation River Scheldt - Belgium Maintenance dredging works THE NETHERLANDS to similar activities, while the treatment of the polluted dredged material was executed by DEC. Dredging International (DI) continued its capital dredging and marine works at the North Sea Terminal (Antwerp). In the Port of Antwerp, DI and DEC successfully continued the operation of AMORAS, the large mechanical dewatering plant for dredged material under a fifteen-year contract. In Kruibeke, the construction of dikes around one of the largest controlled flooding areas in Europe was completed, while the construction of the Sigma dike along the river Scheldt at Fort Filip was in execution, including the construction of another large wetland area called the Prosper polder. These works call for the construction of 5 km of retaining dikes and the reinstallation of the flooding area. In 2013 awards were granted for three beach nourishment works in Middelkerke, Knokke-Heist and Ostend, with a kick-off in October 2013 in Ostend. These works will form the first phases of the Vlaamse Baaien project. Another contract was awarded for two new cutter jobs in Zeebrugge. Finally, Dredging International completed its operations for the construction of the C-Power offshore wind farm on the Thornton Bank. In the Netherlands, DEME operates through its Dutch subsidiaries de Vries & van de Wiel and the Dredging International Netherlands branch. The Botlek Tank Terminal reclamation project in Rotterdam is in full execution and expected to be completed by mid Last year several contracts were obtained: numerous beach nourishment works at 10 locations along the Dutch coast, a Design and Build contract for the deepening and widening of the Juliana Canal and a new contract Waterdunen. The latter project includes the reinforcement of the current coastal protection, the creation of 40 ha of new dunes and 250 ha of accessible tidal nature (mudflats and salt marshes) and recreational nature. 19 dredging and land reclamation
22 1 Prosperpolder - Belgium Construction of the Prosper polder large wetland area 2 Port of Antwerp - Belgium Deepening works, erosion protection and quay wall renovation, North Sea Terminal, Port of Antwerp, Belgium 1 2
23 3 Port of Rotterdam - The Netherlands Reclamation at the Botlek Terminal 4 Waterdunen - The Netherlands Reinforcement of the current coastal protection, creation of new dunes and tidal and recreational nature 5 Ostend - Belgium Beach nourishment works dredging and land reclamation
24 MEDITERRANEAN AREA Despite a harsh economic climate and political challenges, DEME succeeded to maintain a steady presence in the Mediterranean area. In Italy, SIDRA (Società Italiana Dragaggi) was further engaged in various maritime projects at the ports of Cagliari, Trapani, Molfetta, Taranto and Livorno. In 2013 SIDRA completed the dredging of 1,000,000 m³ of rock with the newly built CSD Ambiorix in the Port of Civitavecchia. Finally, SIDRA was active at Pescara with an emergency dredging operation, involving impermeabilization of a reclamation area as well as treatment of polluted soils in a joint effort with DEC. In the northern part of the continent of Africa, Dredging International was involved in the filling of caissons in the Port of Tanger in Morocco. Dredging International also executed maintenance dredging works in the Port of Skikda in Algeria. NORTHERN EUROPE Again this year, the centre of gravity of the North European activities was located in the UK. DEME completed all works at the London Gateway Project and as such, participated in the transition of London Gateway from being one of the largest construction sites in the UK and Europe, to an enormous, state-of-the-art, operational port. The challenge of completing the required scope of work to allow the berthing of the first commercial vessel early November 2013 was accomplished successfully within time and budget. Maintenance works were completed successfully at the Medway Access Channel. In Lincshore, Dredging International executed the fourth campaign of the beach nourishment scheme. In Germany, NORDSEE participated in the traditional river maintenance dredging works on the Rhine, on the Elbe and near to the Wilhelmshaven Oil Refinery, while reinforcing its leading position on the water injection dredging market. In mid-2013, NORDSEE was awarded a contract for removal of 12 wrecks on the River Elbe, between Cuxhaven and Hamburg commissioned by Wasser- und Schifffahrtsamt Cuxhaven. At the end of last year NORDSEE obtained a contract for deepening works in the Port of Bremen. NORDSEE also obtained a maintenance contract on a stretch of 100 km on the Rhine in Duisburg. In France, SDI (Société de Dragage International) has demonstrated its expertise in the maintenance dredging works in Bayonne, Gravelines and on the Gironde River. In a joint venture with DEME daughter DEC, they obtained a contract for dredging, reclaiming and treating of contaminated sediments for the Grand Port Maritime de Dunkirk. A first dredging campaign was realised in October. SDI was also awarded a contract for dredging the second phase of the deepening of the Seine which will start in the first half of The Constance Bonacieux training center in Lambersart was busy throughout 2013, preparing DEME crews and engineers for their assignments on projects around the world. DEME s efforts in the Baltic States, Finland and Poland, remain challenging. We delivered works to full satisfaction of clients in Palanga and Lithuania. RUSSIA In 2013 DEME has continued developing the network of connections in the Area Middle. New and positive acquaintances have been made, including those based on successfully executed projects in the south (Sochi and Taman) and north (Ust-Luga) of Russia in the preceding year. Saint-Petersburg based Mordraga keeps on looking southwards of Russia, since Krasnodar region has proven to be one of the country`s promising and dynamically developing areas, a strategically important transport hub with the excellent geographical position at the junction of Europe and Asia. In relation to this fact and based on the expertise of 2012 in Taman, the Taman New Port construction is a very interesting project. This project includes the creation of a dry cargo area in the Port of Taman at the territory of the Temryuk district and shall become one of the biggest port facilities of the Russian Federation. DEME s Russian branch Mordraga in Saint Petersburg has developed its expertise by continuing to enhance the experience of the Russian engineers. Pescara - Italy Dredging works, involving impermeabilization of a reclamation area as well as treatment of polluted soils River Elbe - Germany Maintenance dredging works on the river Elbe
25 dredging and land reclamation 23
26 1 River Elbe - Germany Wreck removal on the river Elbe 3 Lincshore - UK Beach nourishment works 2 Bayonne - France Maintenance dredging works 1 3 2
27 4 London Gateway Project - UK Completion of the London Gateway Project 4 25 dredging and land reclamation
28 Creating prosperity for everyone Despite the significant increase in the number of major new construction projects in Southeast Asia, and especially in Singapore, the prevailing weaker global market has intensified the competition for such construction projects in Asia Therefore, during 2013, Dredging International Asia Pacific (DIAP) further developed to match both the wider market challenges and the objectives of its partnership strategy. DIAP has been awarded a Design and Build contract for land reclamation as an extension to Jurong Island, for the account of the Singapore Government s largest industrial landlord, the Jurong Town Corporation (JTC). This project JIWE, for Jurong Island Westward Extension will be executed in three main phases over the five coming years. It once again underlines DIAP s continuing contribution in the creation of new land for Singapore s development a process that has been ongoing since the 1990s.
29 Hoh Chi Minh City - Vietnam Dredging works on the Soai Rap Navigation Channel, Phase 2 Also in Singapore, the Jurong Island Phase 4 and Tuas View B Reclamation Project completed its defects liability period on 30 November 2013 with a positive outcome for DIAP. The soil compaction sub-contract works for the Pasir Panjang Container Terminal Phases 3 and 4 are progressing well, and are yielding fruitful results for DIAP. In Vietnam, the Dong Thap Canal Dredging Project, financed by the World Bank, is expected to achieve completion in early Hopper dredger Uilenspiegel commenced dredging on the Soai Rap Navigation Channel (Phase 2) Project in early April 2013, and completion is slated for June Singapore Across the Singapore border, in Malaysia, DIAP looked at the final contract close-out on the PMU Project at Tanjung Bin; the PMIP Project at Tanjung Bin has completed its defects liability period and is now terminated. In the same vein, the Manjung Sand Supply Project was successfully executed in April Phase 3 Phase 1 Phase 2 Jurong Island Jurong Island - Singapore Jurong Island Westward Extension, a land reclamation project to be executed in three main phases over the five coming years 27 dredging and land reclamation
30 2013 has been another very busy, accomplished year for DEME in Oceania. Two massive dredging projects the Western Basin LNG development in Gladstone (Queensland) and the Wheatstone LNG project in Onslow (Western Australia) were operating at full tilt, with a peak in the number of vessels and personnel deployed as from the second quarter of the year. Oceania Dredging International Australia (DIAU) is at the same time undertaking environmental dredging operations at Bige, Papua New Guinea, to remove the OK Tedi mine tailings from the Fly River system and stockpile the dredged tailings in a sustainable way. More than 650 people now work for DEME in Oceania; an unprecedented deployment for the company. Cutter suction dredger Al Mahaar and its boosters completed the Western Basin LNG development in Gladstone well ahead of schedule, thereby allowing all gas proponents to smoothly continue constructing the three LNG facilities on Curtis Island.
31 Boosting our business Down Under Wheatstone - Australia Deepening of the 17 km access channel, the turning basins and the berth pockets DIAU s activities in Western Australia are currently centred on Onslow, a small village located on the Northwestern Coast, between Exmouth and Karratha. Onslow may well be small, but the works DIAU is performing there under commission from Bechtel/Chevron are considered to be the largest dredging scope ever executed in Australia. The construction of the greenfield Wheatstone LNG port and access channel deploys over fifteen marine units, including cutter suction dredger Ambiorix, trailing suction hopper dredgers Brabo and Breydel and barges Sloeber and Pagadder, for approximately two years. The complete deepening of the 17 km access channel, the turning basins and the berth pockets must be completed by 2015, removing a total of 27 million m³ of materials in an environmentally sensitive area, situated in between coral reefs and in the presence of a variety of marine fauna such as turtles, dolphins and whales. The extensive environmental efforts and monitoring of the surrounding water quality that form part of our scope, and which are carried out in close cooperation with the proponent and relevant authorities, have so far been a success due to the adaptive management and controls implemented on this project. The first critical project milestones the provision of access to the Material Offloading Facilities (MOF) were met in late 2013, allowing the client to commence transport of construction materials and heavy modules over water as originally scheduled. 29 dredging and land reclamation
32 Creating the Manhattan of Africa In 2013, DEME s long term policy in Africa enabled us to further expand our activities in this ever more competitive, challenging but rapidly expanding part of the world. DEME has been involved in a substantial number of projects, involving a wide range of techniques for various clients in the public, private and oil and gas sectors. Africa Among the highlights is the successful completion of the second phase of the most extensive land reclamation works ever performed in Africa: the prestigious development of the EKO Atlantic City project in Lagos in Nigeria called the Manhattan of Africa, where 600 ha of land has been reclaimed thus far. The reclamation works for two more adjacent industrial developments at the Sahara and Digisteel sites started successfully. Under the umbrella of Bonny Channel Company, a permanent joint venture with the National Ports Authority of Nigeria, maintenance dredging, some marine services and wreck removal took place on the access to the LNG terminal in Bonny and Onne. Onne has the biggest oil service port in the world, owned and operated by INTELS. Dredging International s cutter suction dredger Rubens started working on phase IV-b of INTELS ambitious yard expansion program. The contract for the dredging and reclamation of this new facility was signed at the end of 2013.
33 Lagos - Nigeria Completion of the second phase of the EKO Atlantic City land reclamation works Offshore, in 35 m deep water, a 400 tonne and 35 m broken spud from the unfortunate oil drilling platform Lewak Leader was removed from the sea floor and safely disposed onshore. This involved substantial salvage and wreck removal operations. The last phase of the remote maintenance and reclamation dredging works on the Niger River in Nigeria was also completed this year. and released from the dedicated nursery into the sea. An important extension to this contract was signed for the protection of another stretch of 10 km coastline further west of the town of Ada. In Lomé, Togo, Dredging International also completed the port and access channel deepening for Bolloré s new container terminal expansion programme. In Ivory Coast, Dredging International was once again the preferred contractor for maintenance in the ports of Abidjan and San Pedro. In Ada, East Ghana, the beach is heavily affected by the effects of climate change and the rising sea level. An innovative design of a temporary jetty construction resulted in the creation of a series of 7 breakwaters to protect 5 km most heavily affected coastline. In the framework of the accompanying environmental protection programme, more than 15,000 turtles were saved Further maintenance dredging works were performed in Soyo, ensuring nautical access to the new Angola LNG terminal in Angola as well as fulfilling an urgent need for additional mooring capacity. In the Democratic Republic of Congo a third maintenance campaign was conducted on the lower Congo River to provide the required nautical access for ship-owners calling the ports of Boma and Matadi. 31 dredging and land reclamation
34 1 Ada - East Ghana Construction of breakwaters to protect the heavily affected coastline 2 Lomé - Togo Deepening works for a new container terminal in the access channel and in the Port of Lomé 1 2
35 3 Onne - Nigeria Maintenance dredging works, marine services and wreck removal on the access to the oil & gas free zones in Onne 3 33 dredging and land reclamation
36 World s first projects Abu Dhabi - UAE Installation of accropodes on SARB 2 In 2013, operations of the Middle East Dredging Company (MEDCO), the joint venture company of DEME, the Qatari United Development Company (UDC) and Qatar Holding, the investment arm of the Government of Qatar, were driven by two large challenging projects in Abu Dhabi and in Qatar. Middle East In Abu Dhabi, the JV DI-MEDCO had, by the end of 2013, completed the construction of the two offshore artificial islands for ADMA-OPCO (Abu Dhabi Marine Operating Company) for the development of the Satah Al Razboot offshore oil field. The construction of these two islands 120 km offshore is a world first. Next to the engineering and design works related to the construction of these islands, the project team managed multi-disciplinary construction activities involving dredging and reclamation, soil improvement by vibro-floatation and dynamic compaction, pre-fabrication of concrete quay wall blocks and harbour construction, construction of breakwater and rock revetment, pre-fabrication and placement of
37 Abu Dhabi - UAE Completion of two artificial energy islands 120 km offshore the coast Accropodes II. The execution and logistic support of the works has been extremely challenging, bearing in mind the location of the islands, some 120 km offshore the coast of Abu Dhabi and the harsh weather conditions experienced at such location. Up to 1,300 people were employed on the project. The safety statistics of the project show that, in total, more than 11.5 million man-hours were performed on the project, with only few minor incidents. Another challenge in 2013 is the dredging and reclamation of the New Port, south of Doha in Qatar. The scope of work includes the reclamation of a nearshore artificial island for the new Naval Base and the dredging of the 20 km long access channel to the New Port. Works are being executed for the Government of Qatar, through the New Port Steering Committee. The project involves the dredging and dry excavation of more than 40 million m³ of predominantly hard limestone rock material. Works include the construction of two breakwaters and the rock revetment for the edge protection of the Naval Base. Three heavy-duty rock cutter suction dredgers and a fleet in excess of 150 dry earthmoving machines are deployed on the project. A total workforce of more than 1,600 people is employed on the project. Protection of the environment has proven to be top priority on this site, where sea grass, corals and mangrove have been relocated to avoid any negative impact that otherwise would have been created by these construction works. dredging and land reclamation 35
38 Doha - Qatar New Port Project (NPP) The Doha New Port Project (NPP) is being built as part of the Qatar 2030 Vision plan. The new port spreads out across more than 26.5 km 2. Medco is responsible for the dredging of the twenty kilometer long access channel towards the new port basins, as well as the construction of the new naval base by reclamation of an nearshore artificial island, including edge protection by rock revetment and the excavation of the naval base basin. The works include land reclamation and soil improvement, the construction of a 3.5 km breakwater, and related tasks. The volumes that have to be moved correspond to the vastness of the site: 45 million m 3 of dredging and excavation, mainly hard limestone rock, which will deepen the access channel to a minimum of 15 m; 12 million m² of land reclamation and soil improvement; 71 km of fixed or floating pipelines and slurry pipes; 4 million tons of riprap and rock, delivered locally or from United Arab Emirates quarries. For the dredging works, two heavy-duty rock Cutter Suction Dredgers have been mobilized, while, for the 17 million m 3 of dry earthmoving, a fleet of almost 300 excavators, bulldozers, wheelloaders, dump trucks and trailers is deployed. The project is designed to mitigate as much as possible the impact to the environment, and includes the re-location of seagrass, corals and mangroves that, otherwise, would have been damaged by the port construction works