Asia

AECOM provided full program management services for the Dholera Special Investment Region (DSIR) as part of the Delhi-Mumbai Industrial Corridor (DMIC) Development Corporation’s new cities infrastructure programme. The programme aims to transform India’s manufacturing and service base by developing a number of smart, sustainable and industrial cities along the 921-mile long corridor between Delhi and Mumbai, the first to be developed being the 347-square-mile township of DSIR. 

AECOM’s project scope consists of implementing all base infrastructure including water supply, sewerage, roads, highways, power and rail; performing extensive flood-control and drainage measures to protect the future city; and overseeing the development and execution of all public-private partnership delivered projects, such as the rail connecting Ahmedabad to Dholera, industrial wastewater treatment and potable water treatment plant.

In the process of developing new towns in Hong Kong, AECOM's experts had overcome the land constraints and technical challenges while being able to appreciate the needs of these developments at various stages, from engaging stakeholders, conceptual designs to construction, enhancement to completion, and finally making the entire project more resilient within a short timeframe.  The unique experience, advanced technology and knowledge used can be readily put into practice in the Delhi-Mumbai Industrial Corridor.

Design Nature

[Featured in Hong Kong Means Business, 2 July 2015]

Stepping into the tropical garden of Singapore’s Sandcrawler building is to be transported to another world. Dense and jungle-like, laced with running water, it replicates the lush forest planets of the Star Wars universe. It’s a look and feel that is right at home at the Lucasfilm Singapore studios.

The work on the Sandcrawler building by landscape architects Adrian L Norman Ltd (ALN) is one of several award-winning projects by the Hong Kong firm that acknowledge the quality of the practice’s innovative projects and the city’s strength in design.

Two merit awards from the Hong Kong Institute of Landscape Architects Design Awards, and three awards from the Institute of Landscape Architects Malaysia, are a unique achievement for the Clearwater Bay firm with a distinctive perspective on the craft.

The firm has a reputation for a sophisticated, yet understated approach to landscape design, with a focus on the marriage between interiors and the exterior. Managing Director Adrian Norman says contemporary design should never be confused with simplistic design, arguing that it’s possible to retain rich detail and texture in a modern context.

“You can take contemporary design but not look at it in a minimalist way, which is often the case when people talk about contemporary design,” says Mr Norman. “But you can actually try and combine it and relate it back to some rich textures of planting types and bring curved forms back into a design, instead of always looking at the straight lines and strong geometries of a site.”

Firm Foundation

After living and working in Hong Kong for 12 years, Mr Norman saw an opportunity to bring a more nuanced approach to landscape architecture. In 2005, the Englishman set up the firm in the New Territories, an area he chose for its lush surroundings and proximity to clients in Kowloon and Hong Kong.

Since starting the business with a staff of four, the company has grown to a team of 26 in Hong Kong, with another 10 staff based in its second office in Kuala Lumpur, which was established in 2010.

The firm is capitalising on demand throughout Southeast Asia and cultivating high-profile jobs in the Chinese mainland, including for global technology company Huawei Technologies. ALN has handled several projects on its Shenzhen campus, including creating a European-style garden and functional sitting-out meeting areas. ALN’s design for the site takes its reference from a natural, picturesque landscape of rolling hills, green valleys, meandering streams and changing colours.

“We developed the landscape as inward-looking. All the buildings were looking inwards and we then dropped the landscape down by almost one whole floor so it became a sunken landscape,” he says. “There are a number of intimate spaces in some locations for small meetings, but we also kept a large lawn area at the front where they could actually hold events and corporate functions.”

Driving Force

ALN was recognised for its Huawei project with two awards. But its most widely acclaimed work has been the Sandcrawler building in Singapore – the award-wining, headline-grabbing home of Lucasfilm’s studios, The Walt Disney Company and ESPN Asia Pacific. “The client was very keen for the landscape to become an environment scene or set from Star Wars,” he says of the design which won Singapore’s Presidents Design Award.

In addition to the building’s architecture, the garden space is also remarkable for the 180 local species planted, which were all specified, procured on field trips and set out on site by ALN.

“It is intended to be an overgrown forest that has germinated on its own, a landscape that is not normally associated with corporate landscapes,” he says.
“That’s the intention; that over the next few years, it really becomes an incredibly densely vegetated central civic space where you meander through a rainforest.”

Mr Norman says landscape design – particularly for spaces destined for hospitality and leisure use – should always be underpinned by a strong connection to the architecture and reflect an understanding of the discipline of design to inform the scheme.

This philosophy was evident in the work designing a private residence in Clearwater Bay, which garnered the firm one of its HKILA awards in the Design – Private category. The project saw the property’s dated swimming pool given a sleek makeover, including an infinity edge with a view over the Port Shelter and South China Sea.

The hidden complexity in the seemingly straightforward design has become a hallmark of ALN’s work, and a sign of the maturity of landscape design in Hong Kong.
 

Buton Island, located in south eastern Sulawesi, Indonesia, contains one of the world’s largest natural asphalt mines with a capacity of some 3.6 billion tons. Hong Kong project management company Gada Holdings Ltd is optimistic about the future demand of natural asphalt for infrastructure development and is actively developing asphalt mining and processing operations in northern Buton. In 2016, Gada established partnerships with several local asphalt mining companies and obtained exclusive rights to process their asphalt. The company introduced large-scale machinery and equipment from both overseas and the Chinese mainland, and has since provided technical support, handled asphalt processing and promoted sales overseas.

When Indonesian President Joko Widodo took office in 2014, he pledged to boost the country’s economic development and promised an increase in infrastructure spending. This has drastically raised domestic demand for asphalt in Indonesia, which is estimated to exceed 4 million tons per year. Compared to obtaining coal tar pitch or petroleum asphalt through the distillation of coal tar or crude oil, the excavation of natural asphalt does not involve chemical processes, making it an appealing option for Indonesia. Natural asphalt is water resistant, recyclable and more durable after paving. In March 2016, the Sulawesi Provincial Government passed legislation that requires the use of at least 50 per cent of Buton asphalt in all new road constructions, and the sole use of Buton asphalt in all road maintenance work.

Calvin Lai, Vice Chairman of Gada pointed out that in addition to Indonesian domestic demand, the rapid development of Asian economies and infrastructure projects in Belt and Road countries also increases the demand for asphalt as a raw material. For this reason, Gada is very confident about the market prospects of natural asphalt, and is already working with local asphalt producers to meet the demand. Mr Lai added that the partnership projects were initiated by the local government, which helped connect Gada with asphalt producers in northern Buton to help them overcome challenges in financing, technology acquisition and sales. Gada plays the role of an international connector to introduce large-scale equipment and advanced mining technology from Chinese mainland’s suppliers to Indonesia, as asphalt processing facilities are lacking in Indonesia.

Mr Lai noted that companies based in Hong Kong can tap into the city’s advantages, including international experience, financing capacity and expertise in product sales. With this base, Hong Kong companies are able to offer professional advice to Indonesian enterprises and help them expand their business overseas.

Gada is in negotiation with Indonesian enterprises, investors and suppliers for the construction of processing plants on Buton Island to enhance its asphalt processing capacity. In addition, Gada plans to launch a wood pellet production line to process the wood obtained during asphalt mining, which can be processed into environmentally-friendly fuel for electricity generation or industrial use.

Gada is prepared to work in concert with the Belt and Road Initiative to further Hong Kong’s role as a connector, and is eager to help Indonesia connect with more countries and corporate buyers to export its processed products to other Asian markets.

The Hong Kong Mass Transit Railway Corporation’s MTR Academy offers the railway’s best experiences and practices for supporting Belt and Road rail developments, says Academy President Morris Cheung. The MTR has a literal and figurative “track record” says Valentin Reyes of Manila’s Light Rail, while Hungary’s MAV learns from MTR’s financial sustainability and service.

Speakers:
Valentin Reyes, HSEQ Director, Light Rail Manila Corp
Morris Cheung, President, MTR Academy
Ilona David, President and CEO, MAV Zrt

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/

Marina Container Lines (HK) Ltd (MCL) was founded in the early 1990s to seize opportunities in the booming logistics industry. The firm began as a shipping agent and gradually expanded into freight forwarding, also known as non-vessel operating common carrier (NVOCC). In recent years, the company has also been active in developing new markets; after joining the Hong Kong Trade Development Council’s business mission to Myanmar in 2013, the company started focusing on developing businesses there the following year, introducing innovative logistics services and trade support solutions.

Eric Wong, MCL’s CEO and Director, said in the 1990s, as Hong Kong developed into an international logistics hub with one of the world’s busiest container ports, many companies from around the world arranged their sea freight shipments through Hong Kong-based freight forwarders in order to gain access to a wider selection of sea ports and freight vessels. Leveraging Hong Kong’s geographical advantage, MCL began offering a comprehensive range of services including cargo booking, contract drafting, scheduling and custom clearance to meet the booming demand for maritime services.

At the time, the company also provided feeder and freight forwarding services for re-exporting goods from the Pearl River Delta to overseas markets while continuing to develop its NOVCC services, taking full advantage of Hong Kong’s position as a regional logistics hub and gateway to the Chinese mainland.

Mr Wong said in the mid-1990s, as many liner shipping companies began setting up their own agencies in major ports around China, MCL still managed to secure a strong customer base because of its one-stop shipping and freight forwarding services.

In 2013, MCL joined an HKTDC mission to Myanmar and realised that apart from logistics services, the country also has great demand for trade support services. The company opened its Myanmar office in August 2014. “The trade missions organised by the HKTDC allow Hong Kong businesses to connect with the management of local companies,” said Mr Wong. “The research and market intelligence provided by the HKTDC are also extremely helpful.”

Almost three decades of experience in capitalising on Hong Kong’s unique advantages has helped MCL expand into the Myanmar market and facilitate the flow of goods between China and Myanmar. Developing its business in the country is now a main focus for the company. Besides providing transportation and delivery services for local businesses, MCL is also helping mainland companies export products to Myanmar. Tapping into the growing e-commerce market, the company is setting up “experience halls” for Myanmar customers to learn more about Chinese products, hoping to create a seamless online-to-offline experience.

The value and power of the Belt and Road Initiative were well illustrated at FILMART 2017 in a Hong Kong joint venture to develop and distribute animated series aimed mainly at children under Russia’s famous Riki brand, said Christine Brendle. The CEO of Hong Kong’s Fun Union, an affiliate of Riki, believed the SAR’s talented people, animation expertise and regional connectivity were “star factors” for success.

Speakers:
Christine Brendle, CEO, Fun Union Limited 
Ilya Popov, General Producer, Riki Group
Patrick Frater, Asia Editor, Variety

Related Links:
Hong Kong Trade Development Council
http://www.hktdc.com

HKTDC Belt and Road Portal
http://beltandroad.hktdc.com/en/
 

Yanbu Aramco Sinopec Refining Company Limited (YASREF) is a joint venture formed between Saudi Aramco and Sinopec in 2012. YASREF developed a 400,000-barrels-per-day oil refinery in Yanbu, Saudi Arabia. The YASREF joint venture is another successful cooperation between Saudi Aramco and Sinopec after building a plant in Fujian Province of China in 2009. It is also the first refining project that Sinopec completed outside of China.

YASREF refinery was initially funded by shareholder loans. After reaching successful project completion in July 2015, YASREF sponsors approached the market to refinance the shareholder loans with commercial debt in January 2016.

A total of US$4.7 billion facilities were raised, comprising a seven-year US$3.1 billion Term Loan and a SAR 6 billion Murabaha facility. The facilities were oversubscribed and signed in April 2016. A total of 26 international and local banks participated in the facilities.

SMBC was appointed as Lead Coordinator, Bookrunner, Mandated Lead Arranger and Documentation Bank for the USD facility. SMBC Hong Kong branch contributed to the success of this transaction from a loan syndication perspective. SMBC syndication team based in Hong Kong actively coordinated with other Hong Kong based banks to make this multi-billion dollar refinancing happens under a short 4-month timeframe. This successful Hong Kong-driven syndication process illustrates the highly liquid, reactive and sophisticated Hong Kong banking market available for large infrastructure deals in Belt and Road countries.

Hong Kong-based Design Icon views the SAR as a regional centre for intellectual property protection as it develops its branded photographic design solution. Director Billy Liu says the company aims to establish Hong Kong as an outstanding location on the global design map, while Director Mike Jerome sees the Belt and Road Initiative bringing a new client base to Hong Kong.

Speakers:
Billy Liu, Design Consultant and Director, Design Icon
Mike Jerome, Design Consultant and Director, Design Icon

Related Link:
Hong Kong Trade Development Council
http://www.hktdc.com/

Hong Kong’s Design Icon has been developing products for global and regional clients – and finds its’ own new, branded photographic solution is picking up interest from companies in Malaysia, Thailand and Indonesia, among others, after launching it at the HKTDC Hong Kong Electronics Fair (Autumn Edition). Director Kevin O’Doherty sees the Belt and Road Initiative introducing new countries and consumers to its design services.  

Speaker:
Kevin O’Doherty, Design Consultant, Director, Design Icon

Related Link:
Hong Kong Trade Development Council
http://www.hktdc.com/

China’s halal food trade shows promise, thanks to the country’s plan to expand links with countries along the Belt and Road.

Much of the attention on China’s Belt and Road Initiative, which envisions linking 65 nations from Southeast Asia, Africa and Europe, has focused on infrastructure opportunities. But business prospects arising from China’s economic development plan extend beyond infrastructure and finance.

At an August seminar organised by the Hong Kong Trade Development Council (HKTDC), the focus centred on developing the nascent but lucrative halal food industry to cater to the large Muslim population along the Belt and Road regions.

The global halal food market was worth US$500 billion in 2014, according to seminar speaker, Wang Guoliang, Deputy Secretary General of the China Islamic Association. He said companies should consider not just the Western European market, but also the emerging Southeast Asia market, where the majority of Muslims live.

“Eighty per cent of halal foods consumed are imported,” said Mr Wong. “The halal sector is expected to double to US$6.4 trillion in 2018, from US$3.2 trillion in 2014.” He said the three largest halal consumer markets are in the Middle East, Southeast Asia and Europe.

Strong European Following

An Arabic word meaning “lawful” or “permitted”, halal is used to describe goods or actions that are in keeping with Sharia law and Islamic principles. While many traders are aware that pork and alcohol are diet restrictions, halal calls for animals to be killed just before processing and using special slaughtering conditions. Blood by-products are also forbidden.

Such strict quality control has given halal foods a wide following in Europe. Mr Wang, noted that about 500 million non-Muslims consume halal foods, representing a large untapped market for Chinese food suppliers.

Halal Certification

Chinese companies currently export less than one per cent of halal food supplies annually. Among the new entrants is Hong Kong-based financial group, Mega Capital International Holdings Ltd, which established a halal food division in June 2014 to connect Chinese manufacturers with Jakim, Malaysia’s Department of Islamic Development responsible for issuing halal certifications.

“Jakim has two main criteria,” said Carson Kwong, President of the company’s halal food subsidiary, MCH Halal International Holdings Ltd. “First, it’s to make sure production flows smoothly and is hygienic. Then, it’s the religious component – that the food is properly prepared according to Islamic principles.”

Standards Pioneer

Recognised by the United Nations and in 57 countries, the Jakim certification can help operators build an extensive distribution network across Asia, the Middle East and North Africa, according to Rusli Mohd Nor, Chief Advisor of Jabatan Kemajuan Islam Malaysia.

“Malaysia is the first in the world to introduce halal food standards,” said Mr Nor. “We are keen to serve as a stepping stone for Chinese halal exports targeting the Belt and Road region.” Mr Nor noted that halal logistics involves managing the supply chain, from transportation to storage and handling, to ensure adherence to Islamic principles, with the goal of safeguarding the integrity and purity of halal products.

While Jakim officials periodically conduct on-site inspections, Mr Kwong said his company pays close attention to factories without ISO9000 certification. The company’s halal food division has already received about 100 applications since starting operations in June 2014.

“Many Chinese SMEs are waking up to the lucrative opportunities in Southeast Asia,” said Mr Kwong. “Events such as the HKTDC seminar encourage them to think out of the box by targeting untapped markets.” He said the seminar generated plenty of discussion, which he welcomed as the halal food business remains an untapped niche in Hong Kong. Eligible applicants, he said, can become halal-certified in about two months, with two years’ validity.

Mr Kwong underscored Hong Kong’s position in helping mainland companies go global. “Free access to information is our biggest advantage,” he said. “We can access Jakim’s big data on halal trade, which is important for our upcoming online trading platform. It provides an alternative channel for Chinese manufacturers to connect with international buyers.”

The company will set up customer services centres in Shenzhen and Guangzhou, and seek funding support from mainland provincial governments to market Chinese-made halal products to the world.