Mega Reclamations Opportunities and Challenges
By: Jan Schaart Van Oord Dredging & Marine Contractors
CEDA Conference on Dredging and Reclamation 6th-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 2
• A total of 2270 km added (7% of total land area) • Extension Port of Rotterdam, Maasvlakte 2, will add another 10 2
km
If there were no sea defences
Reclamation records, Singapore • Started in 1965 and never stopped • For (air)ports, housing, industry and recreation 2
• Total 97 km (18% of total land area) • First landfill, later marine • In total 2 billion m
3
3
• Still 1.0 billion m 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 2
• Total 60 km (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
Van Oord projects
• Palm Jumeirah
• Port Rashid
• Logo Islands
• Palm Deira
• The World
• Deira Islands
• Dubai Beaches
• Rock transport
Palm Jumeirah Sand volume:
110 mln. m3
Start:
late 2001
Completed:
late 2004
The World
Total area Island size Sand volume Rock volume Length breakwater
Area : 9 X 7 km Sand volume : 1.6 – 5.4 ha Rock volume : 325 mln. m3 Start : 32 mln.Completed tons : 25 kms
: 7 x 9 km : 325 mln. m3 : 32 mln. tons : Sept. 2003 : End 2007
Dubai Maritime City – Port Rashid
2 km2 island for marine industry Sand: 32,5 mln. m3 Start: April 2003 Completed: Nov. 2006
Palm Deira, the largest ever Sand volume Afmeting Oppervlakte Rock volume Zandvolume Area Steenvolume Start Projectduur Completion Waarde
: 8 :1200 X 13mln kmm3 : 25:150 km2 mln tons : 700 mln. m3 :9x 13 kms : 110 mln. ton : 2006 : 8: jaar 2014 : 2.5 miljard €
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’
Demography Demography Energy Energy Tourism Tourism Demand Demand for for maritime maritime infrastructure infrastructure
Economy Economy
Climate Climate change change
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
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Migration from rural to urban will continue
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People love living next to water
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80% of large cities are in coastal zones
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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
Av. Prod. per wk..
Ever increasing productions / week 3500000 3250000 3000000 2750000 2500000 2250000 2000000 1750000 1500000 1250000 1000000 750000 500000 250000 0 1990
1992
1994
1996
1998 Year
2000
2002
2004
Economy of scale (volume versus m3 costs) Large reclamation projects, costs of fill / m2 €240 €200 €160 €120 €80 €40 0
50
100
150 200
250 300
350 400
450 500
Volume in million m3 sand/gravel fill Size of bubble: project volume in million m3 marine fill
550
The cost of reclamation •
Larger, more efficient dredging equipment makes mega projects possible
•
Size (of reclamations) really matters
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Historic dredging fill costs ‘always’ below € 140 per m2 !!
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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 Cost of reclaimed land
485 – 625 < 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
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Very high productions can be achieved (up to 3 million m3 per week)
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Reclamation can be designed for sea level rising
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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