NEWS ROUND UP

TOP HIGHLIGHTS

˃ US The state of California in the US has changed its building code to limit the amount of embodied carbon emissions allowed in commercial and school buildings.

The new code will “limit embodied carbon emissions in the construction, remodel, or adaptive reuse of commercial buildings larger than 100,000 square feet (9,230 square metre) and school projects over 50,000 square feet (4,650 square metre),” according to The American Institute of Architects (AIA) California.

˃ FINLAND Finland-based crushing and screening equipment manufacturer Metso has officially shut down its headquarters in Sanomatalo, Helsinki, completing its relocation to a new facility just 25 km away.

The cessation of activities at the Helsinki base, which had been home to the company for many years, marks the fully operational status of its new headquarters facility in the Matinkylä district of Espoo city, Finland.

˃ CHINA Two construction workers using an excavator have ‘severely damaged’ a part of the Great Wall of China, according to news reports. Chinese police say the two people are suspected of trying to create a shortcut for their construction work and that they have been detained as the case is investigated.

The workers are accused of digging a big gap by widening an existing cavity of the Great Wall so that their excavator could pass through it and thus reduce the distance they had to travel. The construction workers were working on the 32nd Great Wall, a section of the Ming Great Wall that is categorised as a historical and cultural site.

˃ SERBIA The President and Prime Minister of Serbia have announced investments in the country’s railway networks as part of a wider plan to revitalise infrastructure over the next four years.

The plan, which involves RSD1.41 trillion (US$12.8 billion) in funding, is aimed at preparing for the Expo 2027 in Belgrade. The new railway projects include completing railway station projects in Prokop and Novi Beograd, constructing an 18km double-track electrified railway in Belgrade, and developing transport links along the Danube river to Prahovo.

One in three bridges in the US need to be repaired or replaced

PHOTO: ADOBE STOCK

IN CASE YOU MISSED IT

One in three bridges in the US need to be repaired or replaced, according to American Road & Transportation Builders Association’s (ARTBA) analysis of the recently released US Department of Transportation 2023 National Bridge Inventory (NBI) database.

The total number of bridges that need major repair work or should be replaced is more than 222,000, which is approximately 36% of all bridges in the US.

ARTBA chief economist, Alison Premo Black, who conducted the analysis, estimates it would cost more than US$319 billion to make all needed repairs.

States currently have access to US$10.6 billion from the 2021 federal Infrastructure Investment and Jobs Act’s (IIJA) bridge formula funds that could help make needed repairs, with another US$15.9 billion to be available in the next three years.

As the end of full year 2023 approaches on Sept. 30, states have committed US$3.2 billion, or 30% of available bridge formula funds, to 2,060 different bridge projects, with US$7.4 billion still coming.

“The good news is that states are beginning to employ these new resources to address long-overdue bridge needs,” ARTBA President and CEO Dave Bauer said. “The better news is that more improvements are on the way.”

Over the last five years, the share of bridges in fair condition has continued to grow as the share of structures classified in ‘poor’ or ‘good’ condition declined.

Most bridges are inspected every two years, meaning repairs underway or in the planning stages can take time to be reflected in the NBI data. In 2023, nearly half of all bridges in the US (48.9%) were in fair condition.

AFRICAN CONTRACTS

WHAT HAPPENED?

China-based construction companies won just under a third of African infrastructure contracts valued at US$50 million or more in 2022, according to a recent report from the Hinrich Foundation.

This dominance is a recent development. During the 1990s, eight out of every ten African contracts aimed at constructing infrastructure were secured by Western companies.

In 2013, Western firms were overseeing 37% of African infrastructure projects, with Chinese companies at 12%. This has changed rapidly: in 2022 Chinese firms had a 31% stake in infrastructure contracts valued at US$50 million or more, while Western firms had 12%.

WHAT IT MEANS

The results of the report are no surprise. Through its Belt and Road Initiative (BRI), China has been investing heavily into Africa with China-based contractors winning the projects and Chinese OEMs supplying the equipment. The African Union has signed a Memorandum of Understanding on BRI cooperation with China.

According to a report from the Observer Research Foundation, there are several trends to BRI investment in Africa. They include: investment in ports and port areas, using connectivity projects to link its industrial and energy projects, and projects that involve a high level of debt for African countries.

There have been serious questions raised over the level of debt that some African countries have been taking on. China announced last year that it was cancelling at least 94 interestfree loans amounting to over US$3.4 billion in Africa between 2000 and 2019.

Although Chinese investment shows no signs of stopping the focus of BRI is China is starting to change. Kanyi Lui of Pinsent Masons said BRI was shifting its focus, “from mega infrastructure projects to ‘small and beautiful’ projects which focus on sustainability, raising living standards and social impact.”

Aerial view of Marina commercial business district Lagos Island, Nigeria

PHOTO: ADOBE STOCK

WHAT’S NEXT?

There is no doubt that China’s BRI is also used for political reasons and in some projects it seems to benefit more from its investments compared to the host countries. While most of the projects do help create infrastructure, industry and connectivity, they are beneficial for Chinese companies in utilising its overcapacity and bringing labour and materials into Africa. The country has already written off or restructured large levels of debt; to maintain good relationships this will need to continue in the future.

It will be interesting to see if the G7’s proposed new infrastructure funding programme or US spending could get anywhere close to Chinese levels of investment in the future.

TOUGH TIMES FOR EUROPE

The construction industry in Europe could start to shrink in 2024, according to the latest forecast from economists at Dutch bank ING.

ING warned that high interest rates and soaring building costs have “drastically reduced” demand for new buildings in Europe.

It said that ongoing projects and a heightened focus on sustainability have prevented construction volumes from shrinking, but a decline would start to emerge in 2024.

Nonetheless, ING upgraded its forecast for EU construction volumes in 2023 to zero growth. Justifying its upgraded forecast, ING pointed to construction production being at the same level in June 2023 as in the same period a year before, and a healthy backlog of work, with 8.9 months of guaranteed projects at the beginning of the third quarter of 2023.

US$1.2BN TOWER HALTED

The construction of a US$1.2 billion office and residential tower in San Francisco, US, has been halted by Global property group Lendlease as it looks to ‘de-risk’ the project.

The tower, known as Hayes Point, is the single largest investment in the US by Australianbased Landlease. The tower, expected to be finished by 2026, was set to be a mixed-use complex, with 333 residential properties on top of 290,000 square feet of office space.

In a media call after announcing the group’s full-year results, chief executive Tony Lombardo said that the company was, “really making sure we de-risk it appropriately before we’re prepared to put further capital in.”

NEW HEAD OF INTERMAT

The Comexposium group has appointed Christophe Lecarpentier as the new head of its Ag Equipment and Construction Business Unit.

In his role, Lecarpentier will oversee the organisation of three major trade shows, including the construction equipment event, Intermat, due to take place at Paris-Nord Villepinte, France, between April 24-27, 2024.

This will be the first Intermat since the pre-Covid event in 2018. Describing itself as a sustainable construction solutions and technology exhibition, it will showcase the latest innovations of manufacturers as they contribute to the efficiency of building projects.

US$16BN AIRPORT PROJECT

The winning bid for constructing the terminal at Long Thanh International Airport, Vietnam, has been awarded to the Vietur consortium, led by Turkey’s IC Istas. The project, valued at VND35.9 trillion (US$1.5 billion), is expected to be completed by November 2026.

The consortium includes ten companies, including Vietnamese private and state-owned firms.

IC Istas has prior experience constructing airports in Russia, Bulgaria, and Turkey. Despite controversy surrounding the bidding process, the Airports Corporation of Vietnam affirmed that all bidders were evaluated fairly by independent experts.