To improve the profitability of the project, Alcan sought to complete it at the remote brownfield and greenfield site in just 27 months, compared to the typical 34-month schedule for a project of this magnitude. This advantage was complicated by the reduced availability of skilled labour due to the number of large-scale projects under way in Australia’s booming resources sector.

Undertaking a massive expansion within a fully operational site also presented unique EHS challenges. Construction work had to take place within the refinery’s existing footprint, increasing the number of high-risk activities taking place around the operation’s 1,100 employees. As well, there would be limited space for construction activity and material storage.

A number of potential community issues also needed to be addressed, including minimizing social impacts on the township of Nhulunbuy and on local air and sea services. With its population of about 3,800, Nhulunbuy lacked the housing and services to accommodate the massive influx of workers required to complete a project of G3’s size using traditional construction methods. And, given its location, the project faced delays due to two wet seasons that lasted four months each.

A Sustainability-driven Solution
Alcan identified a viable construction alternative in the form of pre-assembled modules (PAMs). PAMs are major equipment components – weighing up to 1,800 tonnes each – that are fabricated off site in Asia and Australia and shipped to Gove ready for installation as complete modules. Off-site fabrication and assembly enabled Alcan to commence construction at several sites simultaneously, significantly reducing timeframes and costs.

The PAM strategy was critical to Alcan’s decision to give the G3 project the go-ahead, because it substantially improved the profitability of the project while reducing risk. PAMs ensured minimal impact on the environment at Gove by making it possible to contain construction within the site’s existing footprint. In addition, they minimized impacts on the township of Nhulunbuy. By doing much of the construction work off site, they minimized the risk inherent to construction within a fully operational refinery and shifted this work to controlled workshop environments that were much more suited to large-scale construction. Consequently, the PAM strategy reduced potential EHS risks for both the refinery and G3 workforce.

A major challenge was to identify fabrication and assembly yards that had the capacity to build the huge, complex modules within the project’s approved schedule. Five PAM yards were initially commissioned: two in Australia, two in Thailand, and one in Malaysia. Following the success of the strategy in the project’s first year, the number of PAMs required increased to 600 and additional yards were commissioned in Vietnam, Indonesia, and Singapore.

The strategy was then extended to include Site-Assembled Modules (SAMs), which are similar to their larger PAM counterparts. The SAMs strategy involves fabricating site-assembled modules for transportation to the site as welded units. This minimizes wasted deck space on ships during transportation, providing another opportunity to reduce timeframes and costs. The SAMs arrive in Gove welded together – rather than being loose pieces of structural steel – reducing the amount of work required on site.

With the success of the PAM strategy, the expansion team announced in 2006 that it had developed the ultimate PAM strategy – the G3 SuperPAM. These enormous structures arrived in Gove complete with concrete foundations, weighing in excess of 4,000 tonnes. Particularly during wet seasons, SuperPAMs offered Alcan further time savings and a new way of approaching future expansion projects. During the 27-month project, a total of 600 PAMs and 40 were SuperPAMs were transported by ship to Gove.

Results
The PAM strategy has resulted in substantial savings, especially in the highly competitive Australian market, and reduced the schedule compared to traditional construction techniques.

The construction workforce was held to 1,700 workers, limiting the number of people relocating to the remote township. Traditional construction methods would have tripled the workforce, stretching community resources and accommodation beyond capacity. A fully equipped lifestyle and accommodation village for the construction workforce provided a range of recreational and essential services. Limiting the influx of employees and providing facilities on site made for social peace.

Safety performance also benefited from off-site PAM construction. Rigorous health and safety procedures have resulted in a lost-time injury/illness (LTII) rate that is far below industry standards and well below Alcan’s own strict internal benchmark. As of the end of the second quarter in 2007, the LTII frequency rate was 0.08, significantly below the project benchmark of 0.20 for every 200,000 hours worked.

The G3 PAM strategy has required an ‘integrated team management model’ that was adopted instead of the engineering, procurement and construction management (EPCM) arrangement traditionally used in large-scale projects. The integrated team approach brought together the best people from some of Australia’s leading engineering and construction companies to form one committed and focused management team – “one team with one objective.”

As a result, Alcan’s Australian operations have grown their internal competencies while establishing strong, sustainable relationships with their project partners. The Brisbane-based G3 engineering team can now apply newly acquired, cutting-edge skills to other major Alcan initiatives. Project partners in Australia and overseas have also gained valuable skills and experience that will strengthen their abilities to compete internationally. While levels of employment fluctuate significantly from yard to yard as the project evolves, Alcan Gove estimates that the equivalent of more than 3,500 full time jobs were created in the various PAM yards over the life of the project.

The PAM strategy has already proved itself as an innovative and sustainable solution to large-scale project implementation. In addition to minimizing environmental and social impacts, it is a cost-effective strategy and the basis of the success of the Gove refinery expansion.

Value Creation Summary
Tangible Value Creation	Broader Value Creation
For Alcan	For Alcan
•  Enhanced access to labour. •  Shorter construction schedule. •  Substantially reduced project costs.	•  Enhanced image and reputation. •  Reinforced sustainability leadership through the development of solutions driven by economic, social, and environmental considerations. •  Reduced risk exposure. •  Development of team building and major project skills.
For Stakeholders	For Stakeholders
•  Employment creation including 1,700 employees on site and an estimated 3,500 off site. •  Contract opportunities.	•  Minimized community and social impacts in Nhulunbuy. •  Minimized environmental, health and safety impacts for more than 5,000 workers involved in manufacturing PAMs and installing them on site, and for Alcan employees overseeing day-to-day operations. •  Project management skills development for G3 contractors.