Session 4. Synergies based development 4.3. RAMA IX BRIDGE. Tricky synergies and money made
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1 Session 4. Synergies based development 4.3. RAMA IX BRIDGE Tricky synergies and money made Fabien GIL Managing Director
2 CONTENT 1. Introduction 2. The Rama IX Bridge 3. COLAS Group synergies 4. Profitability of the project 5. Our strengths 6. Proposals 7. Conclusion 2
3 1. INTRODUCTION Colas Asia is strongly involved in the bitumen Industry but is also involved in Thailand in road construction : strong combination allowing us to seize many opportunities Established in Thailand for a long time, we have developed strong links with our clients When the complexity of the project goes beyond the road construction, we know how to lean on Colas Group expertise The Rama IX bridge project is a perfect example of synergies between companies of the Colas Group 3
4 2. THE RAMA IX BRIDGE Rama IX is the current king of the Kingdom of Thailand 1. Cable-stayed bridge built at the end of the 80 s 2. Length of the deck: 780 m (450 m span between pylons) 3. Width: 33 m (2 x 3 lanes) 4. Surface: 25,000 m 2 5. Thickness of the steel bridge deck: 12 mm The project focused only on the left side outbound of m 2 4
5 2. THE RAMA IX BRIDGE Actual situation of the asphalt pavement: Before the work repairs Aged 26 years Traffic: > 50 million vehicles / year before the opening of the Southern Ring Road Last repair: 2004 with SMA Distresses: Fatigue Cracks on the heavy lane 5
6 2. THE RAMA IX BRIDGE Scope of works of the Project: Renewal of the waterproofing complex and resurfacing Anti corrosion layer Waterproofing system A prefabricated bituminous membrane to replace the existing liquid seal Bituminous Wearing course on top A 6 cm thick polymer modified bitumen mix Wearing Course 60 mm Waterproofing membrane Steel plate 6
7 2. THE RAMA IX BRIDGE Issues and challenges on this Project High traffic (located on an major artery of Bangkok) Renewal of the waterproofing complex Unfavorable conditions (temperature, moisture) Flexible surface (steel desk) which generates unusual high strains Stress Mechanism on deck: Compression Tension 7
8 2. THE RAMA IX BRIDGE Sequencing of the works during the construction site December 2013 May 2014 Milling and removal of existing pavement Removal of waterproofing system Shot Blasting Implementation of the primer Implementation of the bituminous membrane Laying Asphalt Hot mix 8
9 3. COLAS GROUP SYNERGIES Many stakeholders involved in the Project The Owner : EXAT (Express Authority of Thailand) The Main Contractor: THAI SLURRY SEAL The support of various Colas Group companies throughout the project: - CST - TIPCO ASPHALT - AXIMUM - AXTER - SMAC 9
10 3. COLAS GROUP SYNERGIES The genesis of the project: Rama IX bridge Project: a long and old story EXAT: Necessity to find a long lasting solution Strong relationship between TSS and EXAT A temporary rehabilitation of the wearing course made by TSS, 10 years ago, with a high performance Hot Mix Asphalt designed by TIPCO R&D Colas Technical assistance to bring a tailored and proven solution and specifications Approval of the Colas specifications, mentioned in the contract 10
11 3. COLAS GROUP SYNERGIES THAI SLURRY SEAL: The main contractor and the key player TSS: COLAS road construction subsidiary in Thailand : employees - 4 Asphalt plants for T of HMA per year - Turnover about 12 M euros per year TSS is well known for its expertise in Asphalt pavement With the support of TIPCO Lab, TSS is pro-active in the implementation of new road techniques in Thailand 11
12 3. COLAS GROUP SYNERGIES CST: the waterproofing complex designer A design method for the Asphalt pavement based on French Standards NF P , adapted to the local context (temperature, load, stress). Tests lab done in CST Laboratory in France to meet specific requirements for the Bituminous Wearing Course : - High bounding to the steel deck - Resistance to cracking under millions of cycles - Resistance to rutting - Waterproof complex Investment of an invert fatigue machine for the Project 12
13 3. COLAS GROUP SYNERGIES TICPO ASPHALT: the bitumen supplier TIPCO ASPHALT: the main supplier of bitumen/emulsion in Thailand Modified polymer bitumen supplied by RAYCOL (subsidiary of both TIPCO and COLAS) High level of Hot mix asphalt performances to be in line with the required specifications: PMA PG ASPHALT PAVEMENT Dosage PMA 6.0% Aggregate Slag from the steel industry (L.A < 17) Resistance to water stripping > 0.94 Rutting Resistance 3.2% at 100,000 cycles / 60 o C Indirect Tensile Stiffness (ITS) > 9,000 MPA / 20 o C Fatigue Resistance > 11,000,000 cycles / 20oC 13
14 3. COLAS GROUP SYNERGIES AXTER: the waterproofing complex supplier The Vernis Antac GC: manufactured by Aximum for the Anticorrosion layer sqm of ExcelPont GC: prefabricated bituminous membrane for the waterproofing system SMAC: the waterproofing complex specialist Technical assistance on waterproofing system Implementation on site of the primer and the sealing of prefabricated bituminous membrane by using a mechanical device 5 min short movie 14
15 3. COLAS GROUP SYNERGIES A successful project despite difficult conditions High level of technical specifications and new techniques implemented Many stakholders which required a good coordination A tight schedule (6 months) during the dry season, due to more favorable weather conditions Day and night works, under traffic generating major traffic jam on incoming expressways 15
16 4. PROFITABILITY OF THE PROJECT A profitable contract 100% Colas Low competition due to the high level of technical specifications, which refer to our own design TSS contract (total amount) = K Including: - TIPCO ASPHALT: 90 K of bitumen & emulsion sales - AXTER: 145 K of products sold - SMAC: 310 K of Revenue for waterproofing system implementation Revenue Breakdown structure AXTER 8% SMAC 18% TIPCO 5% TSS 69% TSS Net Income = 15% (Not included the margins made by the others) Colas Group synergies were worth it! 16
17 5. OUR STRENGTHS Be able to bring a turnkey project to our Clients, based on Colas Group knowledge and know-how: Strong Technical expertise in any type of road construction and complex projects designs Various number of complementary businesses Full control of the road construction business, from the design, materials & products to their implementation on site Worldwide position leading to many opportunities "BUT": high investment made for Rama IX bridge should be depreciated on further similar projects 17
18 6. PROPOSALS Improve our knowledge of Colas Group businesses to seize more opportunities Be pro-active to meet our clients needs with specific technical solutions Have a long term view and a global commercial approach for a win-win strategy Develop Colas Group synergies in order to use a similar model when possible Identify on each territory one or several similar projects Make a selection of the most relevant ones Go into more details to succeed in achieving a contract Each company may have is own Rama IX Project 18
19 7. CONCLUSION Rama IX Bridge: a good example of Colas Group synergies Important and profitable contract thanks to the technical solution brought by the Colas Group companies Performing worksite due to the full commitment of all the parties involved Using this Project as a reference, we are now prospecting for other similar projects in Thailand and Asia area 19
20 7. CONCLUSION As mentioned, the success of the project was mainly due to the commitment of several persons who have worked together in common purpose. Special thanks to: - Etienne LEBOUTEILLER (COLAS), Michel LENFANT (R&D TIPCO) - JL GAUTIER and Sandrine BUYTET (CST) - Hugues DE CHAMPS, Sanit SRISUCHIN and TSS Team (TSS) - Michel DUCROS and SMAC Team (SMAC) - AXTER, TIPCO and all the people involved on this project 20
21 THANK YOU Fabien GIL 21
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