The PCQ expansion at the Abbot Point Terminal
26 Mr Carrick Stokoe gave this evidence.
27 Mr Stokoe is engaged by PCQ in the role of General Manager Construction. He has been engaged by PCQ since 4 July 2005 and is responsible for all works required to be undertaken to provide the Terminal with throughput capacity of 50mtpa. His responsibilities include the overview of all design phases of the expansion, the advertising and assessment of tenders, the letting of tenders and the overseeing of all construction work to deliver the works involved in the expansion. The Terminal is owned by PCQ and operated by "Abbot Point Bulk Coal". Over the years, PCQ has undertaken a number of construction projects to increase the capacity of the Terminal. In or around July 2006 when PCQ was originally planning the expansion of the Terminal, those expansions were intended to have several phases. Each phase was intended to represent an expansion of the capacity of the Terminal to facilitate the export of a particular number of million tonnes of coal per annum and the phase of the expansion was designated by an X. Accordingly, there were initial plans for an X21 Project, an X25 Project, an X30 Project and an X35 Project, with the balance of work required to complete the expansion described as the X50 Project.
28 It became apparent during the construction of the X21 Project in or about January 2008 and shortly after the expansion works for the X25 Project were contracted to John Holland, that there was sufficient capacity demand from users to move directly to the expansion of the Terminal to 50mtpa. Accordingly, PCQ dispensed with the phased intervening expansions of the Terminal between X25 and X50. The work undertaken to expand the capacity of the Terminal beyond 25mtpa became described by reference to two categories of expansion work, namely, the X50 "on‑shore" works and the X50 "off‑shore" works. Mr Stokoe says that the reference to the "X50 off‑shore" works was a reference to work to be carried out under Contract Q08‑004. The tender process for the letting of a contract for these works was overseen by Mr Stokoe. It fell within his responsibility as General Manager Construction.
29 On 21 December 2007, PCQ issued, by letter, an invitation to short‑listed pre‑qualified companies including John Holland to tender for construction of the off‑shore works described in the invitation letter as the "Marine Works" (the "Invitation to Tender"). Mr Stokoe says the Invitation to Tender refers to the intended X30 expansion and includes within the scope of works to be constructed, the intended X30 and X35 works. The letter enclosed tender documents including a technical specification relating to structural, mechanical and electrical works (Appendix D). The letter provides that the Marine Works comprise the scope of works to be the subject of the proposed contract Q08‑004.
30 The letter of 21 December 2007 is contextually important and is, relevantly, in these terms:
John Holland Pty Ltd
Ports Corporation of Queensland
Abbot Point Coal Terminal
X30 Expansion
Marine Works
Contract No. Q08‑004
Invitation to Tender
1. Background
As you are aware, [PCQ] is undertaking a major expansion of its [Terminal] north of Bowen.
The terminal has recently been expanded from 15Mtpa to 21Mtpa throughput capacity with the completion of the X21 expansion. Further work proposed in 2008 will increase capacity still further to approximately 25Mtpa through:
· Construction of a second rail receival dump station and in‑loading conveyor stream
· Speeding up of existing yard conveyors and the existing out‑loading stream from its current 4,000tph to 6,000tph
This work is defined as the X25 expansion.
Contingent upon construction of the Northern Missing Link (NML) rail link between North Goonyella and Newlands, PCQ is now planning to expand its Abbot Point facility to 50Mpta. The next stage of this expansion comprises construction of the following works:
· Upgrading of Dump Station DS1 and inloading Conveyors C101, C102 and C103
· Construction of a second yard Conveyor C204 on Bund 2 and fourth Stacker/Reclaimer SR4
· Construction of a third bund, Bund 3, yard Conveyors C205 and C206 and additional Stacker/Reclaimer machines SR5 and SR6
· Construction of a second berth offshore, referred to as Berth No. 2 and associated shipping gallery Conveyor C335
· Construction of a second Shiploader SL2
· Construction of a second outloading stream, referred to as CL2
It is PCQ's intention that the onshore works will be undertaken under separate contracts. Accordingly, the scope of Contract No. Q08‑004 - Marine Works, broadly includes:
Scope of Contract No Q08‑004 - Marine Works
· Construction of Berth 2 to the east of existing Berth 1, approximately 2.85km offshore, including skeletal steel wharf structure, shiploader strong point, berthing dolphins, mooring dolphins and access roadway
· Construction of shipping gallery Conveyor C335 and associated drive tower
· Construction of the second jetty Conveyor C334 complete, including all structural mechanical and electrical works associated with the outloading conveyor
· Modifications at the head end of jetty Conveyor C334 within the existing transfer tower to permit both the existing jetty Conveyor C324 and the new jetty Conveyor C334 to feed each berth
…
Site access for erection will be available from 28 July 2008. Export of first coal over Berth 2 is required by 31 March 2010.
…
2. Description of the works
The proposed second berth, Berth 2, is shown in general arrangement Drawing No's 664‑4‑X30‑SK010 to SK014. The berth will be constructed to the east of the existing berth and broadly comprise the following features:
· Western strongpoint connected via an access roadway to the existing C324 Drive Tower support platform
· Skeletal steel wharf structure comprising piles, slotted headstocks and shiploader long travel rail girders, and including longitudinal anchor
· Seven independent berthing dolphin structures
· Mooring dolphins and interconnecting walkways
· Precast concrete deck units on the strongpoint, wharf and wharf access roadway
The wharf also supports the wharf shipping Conveyor C335 over its entire length. The structural, mechanical and electrical works associated with this C335 shipping conveyor and C335 Drive Tower will also form part of the scope of works
In addition, the Marine Works Contract shall include the supply and installation of the 2.85km long jetty Conveyor C334. The 24 metre span conveyor gallery trusses will be supported from existing piled headstocks…
A long travelling, luffing, 7,200tph shiploader will also be located on Berth 2 as part of the X50 expansion. At this stage, the shiploader is not included in this Tender but PCQ may later include the supply and installation of the shiploader within the scope of the Contract.
31 The Invitation to Tender sets out at section 3 the scope of works the subject of the tender, in these terms:
3. Scope of Works
The Scope of Works proposed in this Contract No. Q08‑004 broadly includes, but is not limited to, the following:
· Supply and fabrication of approximately 12.8km of 1,200 diameter steel tube piling
· Delivery to site of this piling and splicing on‑shore at site into the required lengths for driving, including provision of the driving shoe. Two splices will be required at site per pile (ie approximately 480 splices at site producing 240 piles)
· Handling and pitching of approximately 240/1,200 diameter piles
· Driving an estimated quantity of 6,000 metres of piles
· Supply, fabrication, protective treatment, delivery to site and installation of approximately 2,200 tonnes of fabricated steelwork associated with headstocks, rail girders, bracing and access for the marine structures and also the C335 conveyor support trestles
· Manufacture, delivery and installation of approximately 950 precast concrete deck units of varying lengths
· Supply and installation of over 530 metres of A150 shiploader rail
· Supply and installation of other miscellaneous equipment including fenders, mooring hooks, ships access facility, platforms, davits, etc.
Structural steelwork including:
· Jetty Conveyor C334 gallery trusses, each typically spanning 24 metres, supported from existing piled headstocks, (Note, no additional piling is required on the approach jetty). The estimated quantity of fabricated steelwork is 1,050 tonnes.
· Modifications in the C324 Drive Tower
· C335 shipping gallery structure comprising over 260 tonnes of fabricated steelwork
· C335 Drive Tower comprising approximately 45 tonnes of fabricated steelwork
· Extruded aluminium flooring and aluminium floor grating
· Aluminium purlins and girts and cladding in C335 Drive Tower
· Limited concrete flooring
Mechanical works including:
· Jetty Conveyor C334 complete including all pulleys, idlers, drive units, conveyor belt, takeup, chutes, scrapers, sensors, guarding, etc, and modifications as required within the existing C324 Drive Tower
· Wharf Conveyor C335 complete including all pulleys, idles, drive unit, conveyor belt, takeup, chutes, scrapers, sensors, guarding, etc. The diverter chute shall be capable of feeding to either C335 on Berth 2 or existing C325 on Berth 1.
· Modifications to chutework to permit existing Jetty Conveyor C324 to feed to either C325 on Berth 1 or C335 on Berth 2
· Wharf slurry tanks and clean‑up system
· Maintenance hoisting equipment
· Conveyor water services
Electrical works including:
· C334 jetty conveyor complete with electrical/control systems hardware, junction boxes, cabling, testing and commissioning
· C335 shipping conveyor complete with electrical/control systems hardware, junction boxes, cabling, testing and commissioning
· Feed centre to shiploader
· Replacement of existing and the installation of new HV switchgear within the Wharf Substation
· HV cabling between the Main and Wharf Substations
· General lighting & power to wharf & jetty structures
· PA system extension
· Cathodic protection of marine structures
[emphasis other than emphasis in bold, added]
32 The Invitation to Tender contained a number of key dates applicable to the proposed contract including oral presentations by tenderers on 3 March 2008, the selection of the preferred contractor by 28 March 2008, the formalisation of the Contract by 30 May 2008, access to the site for the establishment of amenities by 7 July 2008, access to the works by 28 July 2008 and practical completion by 31 March 2010.
33 Mr Stokoe says that by March 2008 the expansion project was known and commonly referred to as the "X50 Expansion Project".
34 On 29 July 2008, PCQ issued a Letter of Acceptance of John Holland's lump sum tender for the Contract. The letter notes that on 28 May 2008, PCQ had issued a "Letter of Intent" to contract with John Holland to enable it to commence early works prior to finalisation of the Contract in order to ensure PCQ's delivery schedule for the works was maintained.
35 The letter of 29 July 2008 describes 10 categories of documents comprising the "Contract Documents" including a Technical Specification (Revision 3) dated 4 June 2008, Standard Specifications listed in an appendix to the Technical Specification and particular Drawings. Revision 3 of the Technical Specification is actually dated 3 June 2008 and is Exhibit MD‑2 to the affidavit of Malcolm Davis sworn 5 March 2009. An earlier version of the Technical Specification, Revision 1, dated 30 April 2008, one month prior to the Letter of Intent of 28 May 2008, is Exhibit MD‑3 to Mr Davis's affidavit of 5 March 2009. The Technical Specification, Revision 3, contains an introductory explanation of the "X50 Expansion" and the scope of works for Contract Q08‑004, in these terms:
1. Introduction
1.1 X50 Expansion
The Abbot Point Coal Terminal (APCT) is owned by Ports Corporation of Queensland (PCQ) and operated by Abbot Point Bulkcoal (APB), hereinafter defined as the "Operator".
The terminal is located at Abbot Point, approximately 30km by road north of Bowen, on the Central Queensland coast. The site of the proposed works is within the boundaries of the existing operating terminal.
X50 is an expansion stage to increase overall throughput at APCT to a nominal 30 million tonnes per annum. The scope of Contract No. Q08‑004 - Marine Works is part of X50 and includes but is not limited to the following main areas of scope:
1.1.1 Berth 2
Berth 2 is a new skeletal steel framed wharf to cater for Cape Size vessels which will be situated to the east of the existing Berth 1. It will have an independent dolphin system and will be connected to the existing transfer tower platform via a new wharf bridge and widening to the transfer tower platform.
1.1.2 Conveyor C334
Conveyor C334 will be a new (second) jetty conveyor which will form part of the new Outloading System 2 (OL2) between the new onshore sample plant tower (to be constructed by others) and the existing offshore transfer tower (which will require modification as part of this contract). The conveyor will be supported upon the existing jetty structure, which was originally constructed to support two conveyors.
1.1.3 Conveyor C335
Conveyor C335 will be an elevated wharf conveyor servicing Shiploader SL2 (to be constructed, delivered and installed by others) upon the new Berth 2, feeding from the new Conveyor C334 at the offshore transfer tower and finishing at a new drive tower at the eastern end of Berth 2.
36 Section 2 describes the scope of works, in part, in these terms:
2. Scope of works
The scope of work included in this Contract broadly includes, but is not necessarily limited to, the supply, fabrication, protective treatment, delivery to site, storage at site and installation of concrete, structural steelwork, mechanical equipment and electrical works associated with X50, …
37 Clause 2.1 summarises the marine structural works in these terms:
The following is provided as a summary of the works to be undertaken:
· 280m long Berth 2 wharf with western strongpoint, longitudinal anchor structure and eastern drive tower platform, including structural steel piling, headstocks, rail girders, rails, pre‑stressed concrete deck units, conveyor support structures, associated steelwork and concrete and miscellaneous items;
· Three new mooring dolphins and seven new berthing dolphins, including Mooring Dolphin MD12, Berthing Dolphins BD13 to BD19 inclusive, and Mooring Dolphins MD20 and MD21, including structural steel piling, headstocks, flooring, steelwork, fendering and mooring equipment and interconnecting trusses and walkways;
· Wharf bridge and transfer tower platform extension, providing roadway connection and wharf conveyor support between Berth 2 and the existing transfer tower platform.
38 The Technical Specification then sets out specific requirements in relation to tubular pile fabrication (2.1.1), hammer and driving system performance (2.1.2), pile testing (2.1.3), pile tension anchors (2.1.4), marine fender systems (including such matters as the Berthing Dolphin Fender Systems and working load tension specifications for chain systems used in association with the Berthing Dolphins) (2.1.5) and quick release mooring hooks (2.2).
39 The general description of the structural works is in these terms:
2.3 Structural works
Removal and disposal off site of existing steelwork as required and the supply, fabrication, protective treatment (including site restoration of new or existing protective coatings affected by the Works), delivery and erection of all new steelwork, grating and cladding systems as nominated by the Drawings and Specifications, including preparation of shop details and the design and installation of temporary works necessary to complete the Works.
40 The structural works are then described in this way:
2.3.1 Jetty Conveyor C334
· Tail end conveyor and conveyor walkway support structure, built upon the Sample Plant 2 C334 Tail end floor structure (constructed by others)
· Onshore trestles and conveyor galleries from the Sample Plant 2 tower to Jetty Bent 1, built upon concrete foundations constructed by others.
· Offshore conveyor galleries along the typical jetty, mounted upon new stainless steel plates welded to the existing headstock shoes, including conveyor cross‑over ladders and platforms at approximately 264 metre centres.
· Offshore trestles and conveyor galleries with fully seated flooring at the offshore end of the conveyor where it rises to the existing C324 / C334 drive tower (the offshore transfer tower), including brake platform, and gravity take‑up unit with fall arrester assembly.
· Modifications to the existing C324 / C334 drive tower to accept the new conveyor installation, and head end conveyor support, conveyor access, and chutework support structure within the tower.
2.3.2 Wharf Conveyor C335
· Tail end conveyor support and conveyor access structure.
· Trestles and clad truss conveyor galleries with fully sealed flooring from the tail end structure to the western‑most tripper travel extent adjacent to the Berth 2 strongpoint.
· Continuously welded beam‑type open conveyor galleries for the length of Berth 2, which support the conveyor and provide the running beams for the Shiploader SL2 tripper.
· Break platform, and gravity take‑up unit with fall arrest assembly near the head end.
· Elevated, clad drive tower at the eastern end of Berth 2.
2.3.3 Miscellaneous Structures
· Berth 2 Ship Access Ladder
· Removal and replacement of the existing amenities building, and provision of miscellaneous shelters and platforms.
41 The mechanical works are described in these terms:
2.4 Mechanical Works
Supply, fabrication, protective treatment, delivery to site, installation, fastening, site welding and touch‑up painting of the following:
2.4.1 Jetty Conveyor C334
The scope of work shall include the supply and installation of the following items:
· Conveyor belting and splice kits
· Storm hold down clamps
· Idler sets (frame and rollers)
· Pulleys complete with bearings and bearing housings
· Installation only of conveyor drive units (primary and secondary) - Principal supplied
· Drive maintenance access platforms
· Take‑up equipment including pulley, suspended box, guide brackets, guide posts, fall arrest and access platforms
· Take‑up lifting winch assembly
· Low speed brake callipers and hydraulic control units at take‑up and tail
· Head chute including deflector plate
· Diverter chute to feed either C325 or C335 including mechanism, gate and actuator
· Transition chutework between diverter outlet and C325 spoon chute
· Transition chutework between diverter outlet and C335 spoon chute
· Feed spoon chute and skirting system at tail end including, skirt plates, skirt clamps, skirt rubbers, skirt covers, shear gate, access platform and ladder, dust sprays and enclosure, etc Contract terminal point is bolted flange at top of spoon chute. Chutework above this flange supplied by others
· Pulley support frames at primary drive, secondary drive, take‑up and tail
· Belt scrapers and return belt ploughs
· Belt rip detectors and other specified protection devices
· Head end belt wash station including underpan, wash rollers, spray bars, nozzles and connecting pipework
· Tail end belt wash station including under underpan, wash rollers, spray bars, nozzles and connecting pipework
· Reticulation of services (air for scapers and water for dust suppression and belt wash)
· Guarding
2.4.2 Wharf Conveyor C335
The scope of work shall include the supply and installation of the following items:
· Conveyor belting and splice kits
· Storm hold down clamps
· Idler sets (frame and rollers)
· Pulleys complete with bearings and bearing housings
· Installation only of conveyor drive units - Principal supplied
· Drive maintenance access platforms
· Take‑up equipment including pulley, suspended box, guide brackets, guide posts, fall arrest and access platforms
· Take‑up lifting winch assembly
· Low speed brake callipers and hydraulic control unit at take‑up
· Head chute including deflector plate
· Feed spoon chute and skirting system at tail end including, feed spoon from C324, feed spoon from C334, skirt plates, skirt clamps, skirt rubbers, skirt covers, shear gate, access platform and ladder, dust sprays and enclosure, etc.
· Pulley support frames at drive, take‑up and tail
· Belt scrapers and return belt ploughs
· Belt rip detectors and other specified protection devices
· Head end belt wash station including underpan, wash rollers, spray bars, nozzles and connecting pipework
· Tail end belt wash station including underpan, wash rollers, spray bars, nozzles and connecting pipework
· Reticulation of services (air for scrapers and water for dust suppression and belt wash)
· Guarding
2.4.3 Existing jetty to wharf transfer C324/C325
The scope of work shall include the supply and installation of the following items:
· Diverter chute to feed either C325 or C335 including mechanism, gate and actuator
· Transition chutework between diverter outlet and C325 spoon chute
· Transition chutework between diverter outlet and C335 spoon chute
· Feed spoon chute and skirting system at tail end of existing C325 including, feed spoon from C324, feed spoon from C334, skirt plates, skirt clamps, skirt rubbers, skirt covers, shear gate, access platform and ladder, dust sprays and enclosure, etc.
2.4.4 Slurry return system
The scope of work shall include the supply and installation of the following items:
· Holding tank and associated pumps, pipework, valves etc at head end of C335
· Holding tanks and associated sumps, pumps, pipework, valves etc at head end of C334
· Sumps, pumps, pipe work, valves, etc at tail end of C334
2.4.5 Services
Particular requirements for services include:
· Water services including all pipework, valves and fittings to service transfer chute dust suppression and slurry return system. This includes connection of new water services into existing pipework.
· Compressed air services for belt scraper air tensioners for C334 and C335. This includes connection of new air services into existing pipework.
42 The scope of work for the relevant services is then further defined in detail in the specification. The Technical Specification of 30 April 2008 (Revision 1) is in precisely the same terms as those sections of Revision 3 of the Technical Specification of 3 June 2008 quoted at para [35] to para [41].
43 The electrical works are defined exhaustively at cl 2.5 of the Technical Specification. It is neither useful nor necessary to recite in these reasons the extensive and detailed requirements of the Technical Specification in relation to the electrical works. The works however involve the development and installation of a wharf substation fire suppression system. Clause 2.5.2 sets out the content of the electrical requirements for the wharf substation. Clause 2.5.3 sets out the content of communications network upgrades within the off‑shore and on‑shore substations. Clause 2.5.4 sets out the requirements in relation to the Conveyors including C334 - Jetty Conveyor 2 and C335 - Wharf Conveyor 2. Clause 2.5.5 sets out the requirements for the "Wharf and Berth 2 electrical services". Clause 2.5.6 describes the switchgear and motor control centre requirements under the heading "Installation of HV switchgear and 415V motor control centre". Clause 2.5.7 deals with the installation, testing and commissioning of transformers in accordance with the specifications and drawings, and cl 2.5.8 addresses the requirements for classes of PLC cabinets. Clause 2.5.9 addresses the requirements for communications network equipment. The remaining subsections of cl 2.5 address the content of specific electrical requirements all related to the X50 Expansion works. The description of the electrical works in Revision 3 is in precisely the same terms as Revision 1 of the Technical Specification.
44 Mr Stokoe says that PCQ is presently undertaking an expansion of the Terminal to increase throughput capacity from 21mtpa to 25mtpa known as the "X25 Expansion project" and an expansion to increase the Terminal's throughput capacity from 25mtpa to 50mtpa known as the "X50 Expansion project". Mr Stokoe says that all work which is being carried out at the Terminal in connection with the X25 Expansion project is taking place on the Terminal site in areas that are marked by signs and known as the "X25 work site". Mr Stokoe says that John Holland is engaged to carry out the work necessary to undertake the off‑shore component of PCQ's X50 Expansion project and that work is taking place on the eastern side of the Terminal in areas marked by signs and collectively known as the "X50 work site". Mr Stokoe says that all work which has been performed to date by John Holland at the X50 work site forms part of PCQ's X50 Expansion project pursuant to two contracts between PCQ and John Holland, namely, Contract Q08‑004 and a second contract, Contract Q08‑005, described as the "X50 Expansion Shiploader SL2 Contract" ("the Shiploader Contract"). Mr Stokoe says that at present, John Holland is not performing any work at the X50 work site pursuant to the Shiploader Contract and all works undertaken by John Holland at the X50 work site are undertaken pursuant to Contract Q08‑004.
45 Mr Stokoe gives this further evidence.
46 PCQ is the owner of the X50 work site. PCQ is the owner and occupier of the whole of that work site with the exception of three areas described as "Lay Down Area 1", "Lay Down Area 2" and a third area described as an amenity and administration area comprising buildings erected by John Holland. John Holland is the occupier of these three areas under the Contract. There is no "X30" work site at the Terminal and no "X30" signs have been erected at the Terminal. There is no "X30 Project" in the same sense that there is an X25 Project and an X50 Project. In various planning phases, PCQ did intend to undertake an X30 Expansion project. However, as things evolved, what was intended to be a separate X30 Expansion stage simply became a part of, and to that extent indivisible from, PCQ's current X50 Expansion project. There was no need to stage the works separately. Instead, PCQ elected to "roll" the intended X30 Expansion works into the off‑shore aspect of the X50 Expansion project.