Seeking Greener Pastures

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1 Overview p. 2 // International Market Analysis p. 2 // Past Decade s International Contracting Revenue p. 2 // International Region Analysis p. 3 // 2012 Revenue Breakdown p. 3 // 2012 New Contracts p. 3 // Domestic Staff Hiring p. 3 // International Staff Hiring p. 3 // Profit/Loss p. 4 // 2012 Backlog p. 4 // Top 10 by Region p. 4 // Top 10 by Market p. 5 // Top 20 non-u.s. International Construction/Program Managers p. 6 // Top 20 non-u.s. Global Construction/Program Managers p. 6 Massive Abu Dhabi Gas Project p. 7 // Chinese Contractors Thriving in Global Market p. 7 // How Contractors Shared the 2012 Market p. 8 // How To Read the Tables p. 8 // Top 250 International Contractors List p. 9 // International Contractors Index p. 14 // Top 250 Global Contractors List p. 15 // Global Contractors Index p. 20 NUMBER 45 PHOTO BY ISOLUX CORSAN AMAZONIA Grupo Isolux Corsan is building 740 miles of high-voltage power lines in Brazil s state of Amazonas, including two 965-ft-tall pylons used to cross the Amazon River. The Top 250 International Contractors Seeking Greener Pastures Large international contractors, particularly from Europe, are seeking new markets in Asia and the Americas By Peter Reina and Gary J. Tulacz enr.com August 26/September 2, 2013 ENR 1

2 THE TOP 250 INTERNATIONAL CONTRACTORS Int l Market Analysis Buildings $103, % 23.4% Petroleum $ OVERVIEW 25.6% Transportation $130, % Hazardous Waste $2, % Telecom $5, % Sewer/Waste $7, Manufacturing $7, % Water $15, % 4.9% Other $24, % Industrial $42, % Power $51, (Measured $ millions) Source: McGraw Hill Construction Research & Analytics / ENR. Comparing the Past Decade s International Contractor Revenue $ $ $ $ $ $ $ $ $ $507.5* 2012 (in $ billions) Source: McGraw Hill Construction Research & Analytics / ENR. *The 2012 figure is for the Top 225 International Contractors. The Expanded Top 250 list firms had a combined revenue of $511.1 billion. Large international contractors are scrambling for work amid stagnant markets in Europe and the U.S., while other fertile markets in the developing world, such as North Africa, are mired in political upheaval. However, contractors are finding opportunities in other regions, and most are holding their own even in depressed markets. But it means more contractors are testing new waters in the international marketplace. The growing number of contractors finding success in new global spots helps explain why ENR has decided to expand its list of top international contractors. Now, the list includes 250 top firms, up from 225, in recognition of the growing number of contractors flourishing in the international marketplace. (The ENR Top International Contractors list had been a Top 250 list until 1991, but it was cut back to a top 225 list in 1992.) On the Top 250 International Contractors list, firms are ranked based on contracting revenue from projects outside of their home countries, measuring their presence in international commerce. ENR also has expanded its Top 250 Global Contractors list, which ranks contractors based on total worldwide contracting revenue, regardless of the projects locations. The ENR Top 250 International Contractors had $ billion in contracting revenue in 2012 from projects outside their home countries, along with $ billion in revenue from domestic projects, for The entire ASEAN zone is a growth area for our companies, in particular Vietnam, Indonesia, Burma and Malaysia. Jean Rossi, President, Vinci Construction S.A. a total contracting revenue of $1.32 trillion. For year-to-year comparisons, the only revenue considered was from this year s 225 largest international contractors. This year s top 225 had international revenue of $ billion in 2012, which represents a 12.0% increase over the $ billion from last year s Top 225. On a regional basis, Canadian projects are the big winner, with a 33.6% increase among this year s Top 225 list. International contracting revenue also was up 23.0% in Asia and Australia, 22.0% in Latin America, 20.0% in the U.S. and 9.0% in the Middle East. Not surprisingly, contracting revenue for the Top 225 contractors was relatively flat in financially strapped Europe, rising only 0.3%. And while contracting revenue rose 2.5% in central and southern Africa, it fell 10.5% in strife-torn northern Africa. New World Opportunities With European markets working through a prolonged stagnation, many large European contractors are recasting their strategies. U.K.-based Balfour Beatty plc, for example, is combining the design and management skills of its U.S.-based Parsons Brinckerhoff subsidiary with the capabilities of its existing investment, construction and operations units to offer full life-cycle services, says CEO Andrew McNaughton. enr.com August 26/September 2, 2013 ENR 2

3 THE TOP 250 INTERNATIONAL CONTRACTORS Int l Region Analysis 27.2% 0.5% Caribbean Islands $2, % North Africa $22, % South and Central Africa $34, % Canada $27, % United States $44, % Latin America $47, % Middle East $91, % Europe $102, Asia and Australia $138, #12 CONSTRUTORA NORBERTO ODEBRECHT S Acreditar ( Believe ) program has helped train 160,000 workers in 25 countries. Revenue (in $ billions) $813.6 $511.1 $1,324.6 New Contracts (in $ billions) Domestic Revenue OVERVIEW International Revenue Total Revenue Source: McGraw Hill Construction Research & Analytics / ENR. $1,585.3 Domestic New Contracts (Measured $ millions) Source: McGraw Hill Construction Research & Analytics / ENR. $998.2 $587.1 Int l New Contracts Total New Contracts Source: McGraw Hill Construction Research & Analytics / ENR. Professional Domestic Staff Hiring Professional International Staff Hiring Increase Decrease Stayed the Same (Measured in firms reporting) Source: McGraw Hill Construction Research & Analytics/ENR. As part of that strategy, Balfour Beatty is selling its rail engineering business in European countries where it has no other businesses. You have to be in more than one sector, explains McNaughton. France s Bouygues Construction SA also is developing skills and businesses over the longest possible value chain to boost local and international business, says chairman and CEO Yves Gabriel. He attributes his firm s win of a share in a $515-million real estate development contract in Miami to its strategy of positioning ourselves on complex, high-value-added projects. Bouygues used its presence on a publicprivate partnership (PPP) for the Miami Port tunnel project to gain entry to the U.S. market, which is attracting increasing numbers of European-based firms. The U.S. is probably going to become our target construction market at the end of the year as construction demand picks up in regional markets, says McNaughton. As a stable, resource-driven market, Canada remains a key focus for Balfour Beatty, he adds. In all likelihood... many major projects will be launched in the United States, says Jean Rossi, president of Paris-based Vinci Construction SA. Vinci is working on the road, bridge and tunnel Ohio East End Crossing PPP projects between Kentucky and Indiana. Italy s Maire Tecnimont is particularly interested in the shale oil and gas developments under way in the 222 of the Top 250 sent in surveys last year. 66.7% had increased international revenue in % had lower international revenue in U.S. Additional gas supply volumes at lower prices are making the North American gas market really appealing for large downstream investments in each of our business units: oil and gas, petrochemicals and fertilizers, says Chairman Fabrizio Di Amato. The U.S. market has definitely gone up, attracting increasing competition from European firms, says Johan Karlström, CEO of Sweden-based Skanska. The European presence in the U.S. has grown substantially through local acquisitions, he adds. European Blues Europeans interest in the U.S. stems partly from the more difficult conditions on their side of the Atlantic. Investment capacity in Eastern Europe is suffering from a reduction in European Union funding and stricter national budget constraints, notes Gabriel. But demands for infrastructure offer good prospects in the medium term. In Eastern Europe, Bechtel Inc. is targeting major highways following successful large contracts in countries, including Albania and Kosovo, says Peter Dawson, president of London-based Bechtel Civil Infrastructure. But the opportunities are scarcer than they once were, he adds. Bechtel s Eastern European experience is not all good. Because of limited government budgets, Bechtel enr.com August 26/September 2, 2013 ENR 3

4 THE TOP 250 INTERNATIONAL CONTRACTORS OVERVIEW The Top 10 by Region 1 ASIA RANK Top 10 Revenue: $74,214.8 Mil. Sector s Revenue: $138,814.2 Mil GRUPO ACS 3 3 BECHTEL 4 5 FLUOR CORP. 5 4 CHINA COMMUNICATIONS CONSTR. GROUP 6 6 LEIGHTON HOLDINGS LTD. 7 7 SAIPEM 8 ** 9 8 CHINA STATE CONSTRUCTION ENG'G CORP. 10 ** HYUNDAI ENGINEERING & CONSTR. CO. LTD. 2 EUROPE RANK Top 10 Revenue: $68,365.0 Mil. Sector s Revenue: $102,262.9 Mil SKANSKA AB 4 3 FCC, FOMENTO DE CONSTR. Y CONTRATAS SA 5 8 GRUPO ACS ROYAL BAM GROUP NV 8 7 BILFINGER SE 9 ** BECHTEL TECHNIP 3 MIDDLE EAST RANK Top 10 Revenue: $38,757.3 Mil. Sector s Revenue: $91,318.1 Mil. 1 3 SAMSUNG ENGINEERING CO. LTD. 2 4 HYUNDAI ENGINEERING & CONSTR. CO. LTD DAELIM INDUSTRIAL CO. LTD. 4 1 BECHTEL 5 2 CONSOLIDATED CONTRACTORS GROUP 6 7 SAIPEM 7 6 FLUOR CORP. 8 5 GS ENGINEERING & CONSTRUCTION CORP. 9 ** SK ENGINEERING & CONSTRUCTION CO. LTD. 10 ** LARSEN & TOUBRO LTD. 4 UNITED STATES RANK Top 10 Revenue: $38,053.0 Mil. Sector s Revenue: $44,106.4 Mil. 1 2 GRUPO ACS SKANSKA AB 4 4 BALFOUR BEATTY PLC 5 6 LEND LEASE GROUP ABEINSA SA 8 ** TECHNIP 9 7 OBAYASHI CORP KAJIMA CORP. 5 LATIN AMERICA / CARIBBEAN RANK Top 10 Revenue: $28,355.4 Mil. Sector s Revenue: $50,016.1 Mil. 1 1 CONSTRUTORA NORBERTO ODEBRECHT 2 2 GRUPO ACS 3 5 FLUOR CORP. 4 3 OHL SA (OBRASCON HUARTE LAIN SA) 5 4 ABEINSA SA 6 10 TECHNIP 7 7 GRUPO ISOLUX CORSAN SA 8 8 BECHTEL 9 ** CHINA NAT L MACHINERY INDUSTRY CORP. 10 ** SALINI SPA 6 AFRICA RANK SAIPEM Top 10 Revenue: $23,003.6 Mil. Sector s Revenue: $56,864.9 Mil. 2 2 CHINA COMMUNICATIONS CONSTR. GROUP 3 4 SINOHYDRO GROUP LTD CHINA RAILWAY GROUP LTD CITIC CONSTRUCTION CO. LTD. 7 9 CHINA STATE CONSTRUCTION ENG'G CORP ** CONSTRUTORA NORBERTO ODEBRECHT 10 ** CHINA NATIONAL MACHINERY INDUSTRY CORP. 7 CANADA RANK Top 10 Revenue: $21,827.5 Mil. Sector s Revenue: $27,492.8 Mil. 1 1 PCL CONSTRUCTION ENTERPRISES INC. 2 2 FLUOR CORP. 3 4 KIEWIT CORP. 4 3 BECHTEL GRUPO ACS 7 ** 8 ** WORLEYPARSONS LTD ** URS CORP. Reporting Profit / Loss 134 Domestic Profit International Profit Domestic Loss International Loss (Measured in firms reporting) Source: McGraw Hill Construction Research & Analytics/ENR. Total Backlog 103 Increase Stayed the same Decrease (Measured in firms reporting) Source: McGraw Hill Construction Research & Analytics/ENR. this year terminated by mutual agreement its Transylvanian motorway turnkey contract in Romania after 10 troubled years. Only a small proportion of the 415-kilometer job was completed, laments Dawson. In western Europe, French demand in the Paris region remains strong but is weaker in the provinces, says Gabriel. However, the firm has conditionally won a major contract for the Marseilles beltway. But even for general contractors with a long U.K. presence, conditions are not rosy. With a significant On the Web For expanded content on the ENR Top Lists see enr.com/ toplists. reduction in large infrastructure work, Balfour Beatty s U.K market has shrunk by 20% over the last year, says McNaughton. Government efforts to boost infrastructure are welcome but too long term. The focus needs to be more on the local market, he adds. There is increasing talk about infrastructure investment in the run-up to the 2015 U.K. elections, says Karlström, but we haven t really seen it materialize. The U.K. is Skanska s main European market outside Scandinavia, which is booming. Norway especially is enr.com August 26/September 2, 2013 ENR 4

5 THE TOP 250 INTERNATIONAL CONTRACTORS The Top 10 by Market #23 OHL SA of Spain is building the $2-billion Centre Hospitalier de l Université de Montréal in Canada, using a public-private partnership. OVERVIEW 1 TRANSPORTATION RANK Top 10 Revenue: $74,678.2 Mil. Sector s Revenue: $130,710.1 Mil. 1 4 GRUPO ACS 2 2 CHINA COMMUNICATIONS CONSTR. GROUP BECHTEL 8 8 FCC, FOMENTO DE CONSTR. Y CONTRATAS SA 9 10 CONSTRUTORA NORBERTO ODEBRECHT 10 ** OHL SA (OBRASCON HUARTE LAIN SA) 2 PETROLEUM RANK SAIPEM 2 2 TECHNIP 3 3 BECHTEL Top 10 Revenue: $64,452.8 Mil. Sector s Revenue: $119,773.5 Mil. 4 5 SAMSUNG ENGINEERING CO. LTD. 5 4 PETROFAC LTD. 6 6 FLUOR CORP. 7 ** DAELIM INDUSTRIAL CO. LTD. 8 7 JGC CORP. 9 ** 10 8 CONSOLIDATED CONTRACTORS GROUP 3 BUILDINGS RANK Top 10 Revenue: $53,234.1 Mil. Sector s Revenue: $103,260.3 Mil. 1 2 GRUPO ACS SKANSKA AB CHINA STATE CONSTRUCTION ENG G CORP. 7 8 PCL CONSTRUCTION ENTERPRISES INC. 8 ** LEND LEASE GROUP 9 7 BALFOUR BEATTY PLC 10 ** ROYAL BAM GROUP NV 4 INDUSTRIAL RANK Top 10 Revenue: $30,419.8 Mil. Sector s Revenue: $42,116.0 Mil. 1 2 FLUOR CORP. 2 1 BECHTEL 3 3 BILFINGER SE 4 4 DANIELI & C OM SPA 5 ** GRUPO ACS 6 ** POSCO ENGINEERING & CONSTRUCTION 7 ** SAMSUNG ENGINEERING CO. LTD. 8 ** CHINA NATIONAL MACHINERY INDUSTRY CORP. 9 ** HYUNDAI ENGINEERING & CONSTR. CO. LTD CHINA METALLURGICAL GROUP CORP. 5 POWER RANK Top 10 Revenue: $25,504.7 Mil. Sector s Revenue: $51,902.3 Mil. 1 2 ABEINSA SA 2 1 GRUPO ACS 3 3 CHINA NATIONAL MACHINERY INDUSTRY CORP. 4 ** HYUNDAI ENGINEERING & CONSTR. CO. LTD. 5 4 SINOHYDRO GROUP LTD SEPCOIII ELECTRIC POWER CONSTR. CORP. 8 7 SEPCO ELECTRIC POWER CONSTR. CORP. 9 ** SAMSUNG C&T CORP. 10 ** GRUPO ISOLUX CORSAN SA 6 WATER RANK Top 10 Revenue: $9,411.0 Mil. Sector s Revenue: $15,406.9 Mil. 1 6 SALINI SPA 2 2 GRUPO ACS CONSTRUTORA NORBERTO ODEBRECHT 5 10 SINOHYDRO GROUP LTD. 6 ** 7 7 CHINA INT'L WATER & ELECTRIC CORP. (CWE) ** SACYR VALLEHERMOSO 10 ** CHINA GEZHOUBA GROUP CO. LTD. 7 MANUFACTURING RANK Top 10 Revenue: $5,981.9 Mil. Sector s Revenue: $7,953.6 Mil. 1 1 TAKENAKA CORP. 2 2 KAJIMA CORP. 3 9 SHIMIZU CORP. 4 4 TAIKISHA LTD SKANSKA AB 7 6 GRUPO ACS 8 ** SAMSUNG C&T CORP OBAYASHI CORP. 10 ** PCL CONSTRUCTION ENTERPRISES INC. 8 SEWER / WASTE RANK Top 10 Revenue: $4,388.6 Mil. Sector s Revenue: $7,172.8 Mil. 1 1 GRUPO ACS FCC, FOMENTO DE CONSTR. Y CONTRATAS SA 5 6 SKANSKA AB 6 9 CHINA COMMUNICATIONS CONSTR. GROUP 7 ** LEIGHTON HOLDINGS LTD. 8 ** BALFOUR BEATTY PLC 9 ** MWH GLOBAL 10 ** 9 HAZARDOUS WASTE RANK Top 10 Revenue: $2,032.2 Mil. Sector s Revenue: $2,084.8 Mil. 1 ** CHINA GENERAL TECHNOLOGY (GROUP) LTD GRUPO ACS FCC, FOMENTO DE CONSTR. Y CONTRATAS SA 7 9 ECC 8 6 JOANNOU & PARASKEVAIDES GROUP OF COS. 9 ** CH2M HILL 10 8 LEIGHTON HOLDINGS LTD. spending a lot of money on infrastructure, he says, but competition from other Europeans is intensifying. European firms also are finding renewed activity in the Middle East and North Africa (MENA). We are seeing growth coming back, and even Dubai is growing again, says McNaughton. Dawson sees many regional opportunities, particularly in rail and metros, but the market is highly competitive, he says. A Bechtel consortium last month clinched a $10-billion turnkey contract for two lines of Riyadh s new metro system. Vinci s primary Middle Eastern market is Qatar, where the firm has a share in a $2-billion metro contract. Vinci controls 49% of the joint venture with the sovereign wealth fund Qatari Diar, which leads the metro consortium. Fuelled by preparations for the 2022 World Cup, Qatar remains very dynamic, adds Gabriel. But we face strong competition. Not all is promising in the Middle East, thanks in part to the European banking crisis. MENA is the major market for [engineer-procure-construct] con- enr.com August 26/September 2, 2013 ENR 5

6 THE TOP 250 INTERNATIONAL CONTRACTORS OVERVIEW THE TOP 20 NON-U.S. FIRMS IN INTERNATIONAL CONSTRUCTION MANAGEMENT / PROGRAM MANAGEMENT FEES* AGENCY PROGRAM TOTAL CM FEES MGMT. FEE CM / PM RANK FIRM ($ MIL) ($ MIL) ($ MIL) 1 LEND LEASE GROUP, Millers Point, Australia ARCADIS NV, Amsterdam, The Netherlands WORLEYPARSONS LTD., North Sydney, Australia , Essen, Germany CHINA ALUMINUM INTERNATIONAL ENG G CO. LTD., Beijing, China SNC-LAVALIN INC., Montreal, Canada HATCH GROUP, Mississauga, Canada ATKINS, Epsom, U.K BALFOUR BEATTY PLC, London, U.K DAR AL-HANDASAH CONSULTANTS, Cairo, Egypt TURNER & TOWNSEND PLC, Leeds, U.K KEO INTERNATIONAL CONSULTANTS WLL, Safat, Kuwait SEPCO ELECTRIC POWER CONSTRUCTION CORP., Jinan City, China PROJACS INTERNATIONAL, Manama, Bahrain RAMBOLL GROUP A/S, Copenhagen S, Denmark ARUP GROUP LTD., London, U.K AUSENCO, South Brisbane, Australia EHAF CONSULTING ENGINEERS, Giza, Egypt GHD, Sidney, Australia CONSOLIDATED CONSULTANTS GROUP (CC), Amman, Jordan *BASED ON FEES FOR MANAGMEMENT SERVICES PROVIDED ON A FEE-ONLY BASIS FOR PROJECTS OUTSIDE THE FIRM S HOME COUNTRY THE TOP 20 NON-U.S. FIRMS IN TOTAL CONSTRUCTION MANAGEMENT / PROGRAM MANAGEMENT FEES* AGENCY PROGRAM TOTAL CM FEES MGMT. FEE CM / PM RANK FIRM ($ MIL) ($ MIL) ($ MIL) 1, Essen, Germany 0.0 1, , CHINA ALUMINUM INTERNATIONAL ENG G CO. LTD., Beijing, China LEND LEASE GROUP, Millers Point, Australia SNC-LAVALIN INC., Montreal, Canada ARCADIS NV, Amsterdam, The Netherlands CHINA POWER ENGINEERING CONSLTG. GROUP CO., Beijing, China HATCH GROUP, Mississauga, Canada ATKINS, Epsom, U.K WORLEYPARSONS LTD., North Sydney, Australia TURNER & TOWNSEND PLC, Leeds, U.K GHD, Sidney, Australia SEPCO ELECTRIC POWER CONSTRUCTION CORP., Jinan City, China BALFOUR BEATTY PLC, London, U.K DAR AL-HANDASAH CONSULTANTS, Cairo, Egypt KEO INTERNATIONAL CONSULTANTS WLL, Safat, Kuwait RAMBOLL GROUP A/S, Copenhagen S, Denmark ARUP GROUP LTD., London, U.K HANMIGLOBAL, Seoul, S. Korea EHAF CONSULTING ENGINEERS, Giza, Egypt PROJACS INTERNATIONAL, Manama, Bahrain *BASED ON FEES FOR MANAGMEMENT SERVICES PROVIDED ON A FEE-ONLY BASIS FOR ALL PROJECTS REGARDLESS OF LOCATION tractors these days, says Kim, Yeon Joon, a manager on the international business planning team for Korea s Hyundai Engineering & Construction Co. However, he says project financing from European banks and other financial institutions has become more difficult, halting plans for many major projects in the MENA region. The global financial crisis in 2008 hit the Middle East hard, and its effects are still being felt. Governments delayed projects, and banks halted providing financial support to the contractors, says Yousef Maswadeh, director of business development for Kuwait s Kharafi National. He says banks and financial institutions are lending again, but the qualifications for obtaining financial aid have become more stringent and, in many cases, the costs of borrowing have skyrocketed. Further, many MENA-region contractors are feeling more competition from European contractors. European construction firms [are showing] greater interest in Turkey every passing day, says Mehmet Okay, board member of Turkey s ANT Yapi. However, Okay says his firm is feeling less pressure in Russia and the Commonwealth of Independent States. For example, ANT Yapi is building the 85-floor OKO City tower in the Moscow International City Center. The firm also is building 1.3 million sq ft of hotel and apartment space in the run-up to Russia s 2014 Sochi Winter Olympics. Political unrest in North Africa has caused a pause in many major projects. Maswadeh says Kharafi National managed to avoid the turmoil except in Egypt. The current political situation in Egypt might delay implementation of mega-infrastructure development projects that rely on build-operate-transfer and PPP financing programs, he says. Libya is another area of concern, but some contractors believe stability is beginning to return to the market. Our operations did see a setback with upheaval in Libya, where we had both oil-and-gas and infrastructure projects. We are, however, happy to note that the situation is improving in the country, and we have started mobilizing manpower to resume projects, says Atul Punj, chairman of India s Punj Lloyd Group. He says that Punj Lloyd prefers to be the lead contractor on projects when risk is an issue. East Asia remains a construction powerhouse. The entire ASEAN [Association of Southeast Asian Nations] zone is a growth area for our companies, in particular Vietnam, Indonesia, Burma and Malaysia, notes Vinci s Rossi. Bechtel focuses on natural-resource sectors in the region as transportation and infrastructure are less of enr.com August 26/September 2, 2013 ENR 6

7 THE TOP 250 INTERNATIONAL CONTRACTORS #58 SACYR VALLEHERMOSO of Spain has entered five new markets this year U.K., Peru, Qatar, India and Mozambique says a spokesperson. OVERVIEW Oil & Gas Italy s Maire Tecnimont (No. 52) and Japan s JGC (No. 32) are completing work on the $4.7-billion integrated gas development Project Habshan 5 in Abu Dhabi. The five-year job employed up to 30,000 workers from 35 different countries. In June, the project achieved a milestone of accumulating 100 million safe man hours without a Lost Time Incident, says Maire Tecnimont Chairman Fabrizio Di Amato. a priority, he adds. The number of opportunities in China has dropped partly because of the growth of local competence, he says. For Bechtel, India is a global engineering and procurement base as well as a local market, particularly in refineries and petrochemical. But margins are very thin, says Dawson. The BRIC countries Brazil, Russia, India and China are, in general, very tough for contractors, he adds. India and China will continue to be the most important construction markets, driven primarily by the irreversible forces of urbanization and infrastructure growth, says S.N. Subrahmanyan, senior executive vice president of India s Larsen & Toubro India and China, as well as the Middle East, are expected to grow rapidly in face of the huge infrastructure The U.S. is probably going to become our target construction market at the end of the year. Andrew McNaughton, CEO, Balfour Beatty PHOTO BY MAIRE TECNIMONT Companies By Yue Jiang Chinese Contractors Thriving in the World Market Chinese contractors have come a long way from just being labor suppliers. They are growing in sophistication and are becoming a presence in the international market. Chinese construction companies as a group completed work worth $116.6 billion in the overseas markets in 2012, an increase of 12.7% from 2011, according to a report by the China International Contractors Association (CHINCA), a Beijing-based industry alliance of Chinese companies that has foreign construction projects abroad. New contracts amounted to $156.5 billion in 2012, up 10% from the year before. The increases indicate a growing recovery of foreign markets for Chinese construction companies, which experienced only a 5.9% increase in backlog in The recovery is mostly driven by the expansion of markets in African countries, which saw new contracts for Chinese contractors rise 39.9%, to $64.05 billion, in 2012, according to the CHINCA report. The biggest increase within the African markets is from Nigeria, where new project awards amounted to $10.2 billion. In Asia, however, new contract awards fell 6.4% in 2012 due to lagging economic recovery in the region. For instance, new utility projects fell by $10 billion in India due to the country s economic uncertainty. The largest sector is transportation, which made up to 22.8% of the market. Transportation also took in the most new contracts, which were worth $35.62 billion, an increase of 31.6% over last year. Building construction, the second-largest market sector, secured 15.5% more new contracts, which are worth $32.09 billion in 2012, mostly contributed by five residential building projects in Angola that total $5.18 billion. n deficits faced by such countries, coupled with their governments policy initiative to deliver. However, Subrahmanyan warns that many international contractors rushing to find geographic diversity have to be aware of widely different regulatory climates from nation to nation. There are considerable regulatory risks of working in diverse geographies with relatively high entry barriers, he says. McNaughton finds India to be a fascinating market in power and rail sectors. But tackling the Indian market is a very long game. Other firms are also taking a long view on the market. We are getting to learn about Indian culture in order to position ourselves on the right projects in a country where infrastructure needs are enormous, explains Rossi. Latin America continues to attract growing interenr.com August 26/September 2, 2013 ENR 7

8 THE TOP 250 INTERNATIONAL CONTRACTORS #77 PUNJ LLOYD GROUP of India is building the first polysilicon plant in Qatar, a $1-billion, 8,000-metric-ton plant for Qatar Solar Technologies. OVERVIEW national interest, although the competition is tough. The region offers many opportunities across a range of sectors that are interesting to Bechtel, says Dawson. While one of Bechtel s largest engineering offices is in Chile, it is also optimistic about other countries, including Brazil, Colombia and Peru. Vinci is particularly interested in developing businesses in Mexico, Colombia, Peru and Chile, where it is building a tunnel for the world s largest underground copper mine, according to Rossi. Bouygues entered the Brazilian market this year, winning a hotel contract in Rio de Janeiro with a local partner. Gabriel also expresses interest in Peru, Colombia, and Trinidad and Tobago. Balfour Beatty has a small team in Brazil scouting out project management, investment and operations-and-maintenance opportunities, says McNaughton. Once generally written off as an international construction market, Africa has risen in executives expectations. Growth has remained very robust, notes Rossi, citing among Vinci s wins pipelines in Benin, a port in Togo and a bridge in Cameroon. Bechtel is very bullish about Africa, where governments increasingly are becoming more democratic and want to invest in their people, says Dawson. In 10 years, we will be talking about sub-saharan Africa in the same way we talked about the Middle East 10 to 15 years ago, he believes. n HOW THE TOP INTERNATIONAL DESIGN FIRMS SHARED THE 2012 MARKET DESIGNER NATIONALITY # OF FIRMS INT L REVENUE MIDDLE EAST ASIA AFRICA EUROPE UNITED STATES CANADA LAT. AMER / CARIB. $ MIL. % $ MIL. % $ MIL. % $ MIL. % $ MIL. % $ MIL. % $ MIL. % $ MIL. % AMERICAN 33 71, , , , , NA NA 18, , CANADIAN 3 1, NA NA EUROPEAN , , , , , , , , BRITISH 3 12, , , , , GERMAN 4 43, , , , , , FRENCH 4 43, , , , , , , , ITALIAN 17 30, , , , , , DUTCH 2 7, , SPANISH 12 72, , , , , , , , OTHER 16 44, , , , , , , AUSTRALIAN 4 10, , , , , JAPANESE 15 21, , , , CHINESE 55 67, , , , , , KOREAN 15 41, , , , , TURKISH 38 16, , , , , BRAZILIAN 4 11, , , ALL OTHERS 25 14, , , , , ALL FIRMS , , , , , , , , SOURCE: ENR. NOTE: EXCLUDING $176.4 MILLION FROM ANTARCTIC / ARCTIC OR UNALLOCATED How To Read the Tables Companies are ranked according to construction revenue generated outside of each company s home country in 2012 in U.S. $ millions. Firms not ranked last year are designated **. Some markets may not add up to 100% due to omission of other miscellaneous market category and rounding. NA=Not available. =Includes revenue of subsidiaries, the names of which are now available through ENR.com. Figures include prime contracts, shares of joint ventures, subcontracts, designconstruct contracts and construction management-at-risk contracts when a firm s risks are similar to those of a general contractor s. Figures also include the value of installed equipment when a firm has prime responsibility for specifying and procuring it within a construction contract s scope. General Building includes commercial buildings, offices, stores, educational facilities, government buildings, hospitals, medical facilities, hotels, apartments, housing, etc. Manufacturing comprises auto, electronic assembly, textile plants, etc. Power comprises thermal and hydroelectric powerplants, waste-to-energy plants, transmission lines, substations, cogeneration plants, etc. Water Supply includes dams, reservoirs, transmission pipelines, distribution mains, irrigations canals, desalination and drinkingwater treatment plants, pumping stations, etc. Sewerage / Solid Waste includes sanitary and storm sewers, treatment plants, pumping plants, incinerators, industrial waste facilities, etc. Industrial Process comprises pulp and paper mills, steel mills, non-ferrous metal refineries, pharmaceutical plants, chemical plants, food and other processing plants, etc. Petroleum includes refineries, petrochemical plants, offshore facilities, pipelines, etc. Transportation includes airports, bridges, roads, canals, locks, dredging, marine facilities, piers, railroads, tunnels, etc. Hazardous Waste includes chemical, nuclear-waste treatment, asbestos and lead abatement, etc. Telecommunications comprises transmission lines, cabling, towers / antennae, data centers, etc. enr.com August 26/September 2, 2013 ENR 8

9 THE TOP 250 INTERNATIONAL CONTRACTORS The Top 250 List RANK FIRM 2012 REVENUE $ MIL. INT'L TOTAL 2012 NEW INT'L CONTRACTS $ MIL 1 2 GRUPO ACS, Madrid, Spain 42, , , , Essen, Germany 34, , , BECHTEL, San Francisco, Calif., U.S.A. 23, , , , Rueil-Malmaison, France 18, , , FLUOR CORP., Irving, Texas, U.S.A. 17, , , , Vienna, Austria 16, , , , Paris, France 14, , , SAIPEM, San Donato Milanese, Italy 13, ,039.1 NA SKANSKA AB, Solna, Sweden 13, , , CHINA COMMUNICATIONS CONSTRUCTION GROUP LTD., Beijing, China 11, , , TECHNIP, Paris, France 10, , , CONSTRUTORA NORBERTO ODEBRECHT, Sao Paulo, SP, Brazil 9, , , SAMSUNG ENGINEERING CO. LTD., Seoul, S. Korea 8, , , FCC, FOMENTO DE CONSTR. Y CONTRATAS SA, Madrid, Spain 8, , , HYUNDAI ENGINEERING & CONSTRUCTION CO. LTD., Seoul, S. Korea 7, , , BILFINGER SE, Mannheim, Germany 6, , , BALFOUR BEATTY PLC, London, U.K. 6, , , PETROFAC LTD., Jersey, Channel Islands, U.K. 5, , , ROYAL BAM GROUP NV, Bunnik, The Netherlands 5, , , SINOHYDRO GROUP LTD., Beijing, China 5, , , CONSOLIDATED CONTRACTORS GROUP, Athens, Greece 5, , , PCL CONSTRUCTION ENTERPRISES INC., Denver, Colo., U.S.A. 5, , , OHL SA (OBRASCON HUARTE LAIN SA), Madrid, Spain 5, , , CHINA STATE CONSTRUCTION ENG G CORP., Beijing, China 4, , , CHINA NATIONAL MACHINERY INDUSTRY CORP., Beijing, China 4, , , DAELIM INDUSTRIAL CO. LTD., Seoul, S. Korea 4, , , SALINI SPA, Rome, Italy 4, , , GS ENGINEERING & CONSTRUCTION CORP., Seoul, S. Korea 4, , , , Houston, Texas, U.S.A. 4, , , ABEINSA SA, Seville, Spain 4, , , LEIGHTON HOLDINGS LTD., St. Leonards, New South Wales, Australia 4, , , JGC CORP., Yokohama, Japan 4, , , LEND LEASE GROUP, Millers Point, New South Wales, Australia 3, , , CHINA RAILWAY GROUP LTD., Beijing, China 3, , , SK ENGINEERING & CONSTRUCTION CO. LTD., Seoul, S. Korea 3, , , SAMSUNG C&T CORP., Seoul, S. Korea 3, , , , The Woodlands, Texas, U.S.A. 3, , , TECNICAS REUNIDAS, Madrid, Spain 3, , , KIEWIT CORP., Omaha, Neb., U.S.A. 3, , , DAEWOO E&C CO. LTD., Seoul, S. Korea 3, , , DANIELI & C. OM SPA, Buttrio, Italy 2, , , MCDERMOTT INTERNATIONAL INC., Houston, Texas, U.S.A. 2, , , CITIC CONSTRUCTION CO. LTD., Beijing, China 2, , , FOSTER WHEELER AG, Hampton, N.J., U.S.A. 2, , , GRUPO ISOLUX CORSAN SA, Madrid, Spain 2, , , POSCO ENGINEERING & CONSTRUCTION, Incheon, S. Korea 2, , , OBAYASHI CORP., Tokyo, Japan 2, , LARSEN & TOUBRO LTD., Mumbai, India 2, , , ACCIONA INFRAESTRUCTURAS, Madrid, Spain 2, , , KAJIMA CORP., Tokyo, Japan 2, , , GENERAL BUILDING MANUFACTURING POWER WATER SUPPLY SEWER / WASTE INDUS. / PETROLEUM TRANSPORTATION HAZARDOUS WASTE TELECOM enr.com August 26/September 2, 2013 ENR 9

10 THE TOP 250 INTERNATIONAL CONTRACTORS #64 RENAISSANCE CONSTRUCTION of Turkey is the largest of 38 Turkish contractors on the Top 250 International Contractors list this year. RANK FIRM 2012 REVENUE $ MIL. INT'L TOTAL 2012 NEW INT'L CONTRACTS $ MIL CHINA METALLURGICAL GROUP CORP., Beijing, China 2, , , MAIRE TECNIMONT, Rome, Italy 2, , CHINA RAILWAY CONSTRUCTION CORP. LTD., Beijing, China 2, , , SEPCOIII ELECTRIC POWER CONSTRUCTION CORP., Qingdao, China 2, , , JACOBS, Pasadena, Calif., U.S.A. 2, , , CHINA GEZHOUBA GROUP CO. LTD., Wuhan City, Hubei, China 2, , , TOYO ENGINEERING CORP., Chiba, Japan 1, , , SACYR VALLEHERMOSO, Madrid, Spain 1, , , ** MOTA-ENGIL, Porto, Portugal 1, , , VAN OORD, Rotterdam, The Netherlands 1, , , SEPCO ELECTRIC POWER CONSTRUCTION CORP., Jinan City, China 1, , ASTALDI SPA, Rome, Italy 1, , , BESIX SA, Brussels, Belgium 1, , RENAISSANCE CONSTRUCTION, Ankara, Turkey 1, , , CHIYODA CORP., Yokohama, Kanagawa Pref., Japan 1, , , CONSTRUTORA ANDRADE GUTIERREZ SA, Belo Horizonte, MG, Brazil 1, , , SHIMIZU CORP., Tokyo, Japan 1, , , ARABIAN CONSTRUCTION CO. SAL, Beirut, Lebanon 1, , , WORLEYPARSONS LTD., North Sydney, New South Wales, Australia 1, , TAKENAKA CORP., Osaka, Japan 1, , , CHINA CIVIL ENGINEERING CONSTR. CORP., Beijing, China 1, , , SHANGHAI ELECTRIC GROUP CO. LTD., Shanghai, China 1, ,935.0 NA JOANNOU & PARASKEVAIDES GROUP, Guernsey, Channel Islands, U.K. 1, , , ED. ZÜBLIN AG, Stuttgart, Germany 1, ,058.7 NA TAIKISHA LTD., Tokyo, Japan 1, ,298.6 NA TAISEI CORP., Tokyo, Japan 1, , PUNJ LLOYD LTD., Gurgaon, Haryana, India 1, , PORR AG, Vienna, Austria 1, , , ENKA CONSTRUCTION & INDUSTRY CO. INC., Istanbul, Turkey 1, , , PENTA-OCEAN CONSTRUCTION CO. LTD., Tokyo, Japan 1, , CHINA GENERAL TECHNOLOGY (GROUP) HOLDING LTD., Beijing, China 1, , , CHINA NATIONAL CHEMICAL ENGINEERING GROUP, Beijing, China 1, , , THE ARAB CONTRACTORS (O.A.O. & CO.), Cairo, Egypt 1, , CHINA PETROLEUM ENG G & CONSTRUCTION CORP., Beijing, China 1, , , TEKFEN CONSTRUCTION AND INSTALLATION CO. INC., Istanbul, Turkey 1, , CHINA INT L WATER & ELECTRIC CORP. (CWE), Beijing, China 1, , , SNC-LAVALIN INC., Montreal, Quebec, Canada 1, , HANWHA ENGINEERING & CONSTRUCTION CORP., Seoul, S. Korea 1, , , CGC OVERSEAS CONSTRUCTION GROUP CO. LTD., Beijing, China 1, , , POLIMEKS INSAAT TAAHHUT VE SAN TIC. AS, Istanbul, Turkey , SINOPEC ENGINEERING (GROUP) CO. LTD., Beijing, China , , DONGFANG ELECTRIC CORP., Chengdu, Sichuan, China , URS CORP., San Francisco, Calif., U.S.A , , ANT YAPI INDUSTRY & TRADE JSC, Istanbul, Turkey QINGJIAN GROUP CO. LTD., Qingdao, Shandong, China , SHANGHAI CONSTRUCTION GROUP, Shanghai, China , COMSA EMTE, Madrid, Spain , CHINA PETROLEUM PIPELINE BUREAU (CPP), Langfang City, China , , ** SHIKUN & BINUI - SBI INFRASTRUCTURE LTD., Airport City, Israel , BAUER AG, Schrobenhausen, Germany , GENERAL BUILDING MANUFACTURING POWER WATER SUPPLY SEWER / WASTE INDUS. / PETROLEUM TRANSPORTATION HAZARDOUS WASTE TELECOM enr.com August 26/September 2, 2013 ENR 10

11 THE TOP 250 INTERNATIONAL CONTRACTORS #69 WORLEYPARSONS LTD. of Australia ranked at No. 1 on ENR s 2013 Top 225 International Design Firms list (ENR 7/9 p. 19). RANK FIRM 2012 REVENUE $ MIL. INT'L TOTAL 2012 NEW INT'L CONTRACTS $ MIL KHARAFI NATIONAL KSCC, Safat, Kuwait ,753.0 NA BLACK & VEATCH, Overland Park, Kan., U.S.A , TAV CONSTRUCTION, Istanbul, Turkey , ** ANSALDO ENERGIA SPA, Genova, Italy MCCONNELL DOWELL CORP. LTD., Hawthorn, Victoria, Australia , , IBERDROLA INGENIERIA Y CONSTRUCCION, Madrid, Spain GHELLA SPA, Rome, Italy GRUPO SOARES DA COSTA, SGPS SA, Porto, Portugal CTCI CORP., Taipei, Taiwan , CHINA GEO-ENGINEERING CORP., Beijing, China CALIK ENERJI SANAYI VE TICARET ANONIM SIRKETI, Istanbul, Turkey SOCIETA ITALIANA PER CONDOTTE D ACQUA SPA, Rome, Italy , , SICIM SPA, Busseto (PR), Italy TREVI FINANZIARIA INDUSTRIALE SPA, Cesena (FC), Italy JOHN SISK & SON LTD., Dublin, Leinster, Ireland , ** SINOPEC ZHONGYUAN PETROLEUM ENGINEERING LTD., Puyang, China , ARABTEC CONSTRUCTION LLC, Dubai, U.A.E , GAMA, Ankara, Turkey BONATTI SPA, Parma, Italy DIA HOLDING FZCO, Dubai, U.A.E , OAS SA, São Paulo, SP, Brazil , , CHINA JIANGSU INT L ECON. AND TECHNICAL COOP., Nanjing, China , METKA, Athens, Greece YUKSEL INSAAT CO. INC., Ankara, Turkey SHAPOORJI PALLONJI & CO. LTD., Mumbai, Maharashtra, India , ** DESCON ENGINEERING LTD., Lahore, Pakistan CENGIZ CONSTRUCTION INDUSTRY & TRADE CO. INC., Istanbul, Turkey , C.M.C. DI RAVENNA, Ravenna, Italy , IC ICTAS INSAAT SANAYI VE TICARET AS, Ankara, Turkey , CONTRACTING & TRADING CO., Beirut, Lebanon ECC, Burlingame, Calif., U.S.A SSANGYONG ENGINEERING & CONSTRUCTION CO. LTD., Seoul, S. Korea , BEIJING CONSTRUCTION ENG G GROUP CO. LTD., Beijing, China , PER AARSLEFF A/S, Aabyhøj, Denmark , ONUR TAAHHUT TICARET LTD. STL., Ankara, Turkey ABB SPA - PROCESS AUTOMATION DIVISION, Sesto San Giovanni, Italy CHINA DALIAN INT L ECO. & TECHN. COOPERATION GRP., Dalian, China ** XPCC CONSTRUCTION & ENGINEERING (GROUP) CO., Urumqi, China , ** KAYSON INC., Tehran, Iran B.L. HARBERT INTERNATIONAL LLC, Birmingham, Ala., U.S.A ORASCOM CONSTRUCTION INDUSTRIES (OCI), Cairo, Egypt , , AMEC PLC, London, England, U.K ,101.7 NA DOOSAN ENGINEERING & CONSTRUCTION CO. LTD., Seoul, S. Korea , LAKESHORE TOLTEST CORP., Detroit, Mich., U.S.A ATLAS GROUP, Ankara, Turkey MAPA INSAAT VE TICARET AS, Ankara, Turkey CHINA HENAN INT L COOPERATION GROUP CO. LTD., Zhengzhou, China THE BABCOCK & WILCOX CO., Charlotte, N.C., U.S.A , ** DAQING OILFIELD CONSTRUCTION GROUP CO. LTD., Daqing City, China , NATA CONSTRUCTION TOURISM TRADE & INDUSTRY, Ankara, Turkey , GENERAL BUILDING MANUFACTURING POWER WATER SUPPLY SEWER / WASTE INDUS. / PETROLEUM TRANSPORTATION HAZARDOUS WASTE TELECOM enr.com August 26/September 2, 2013 ENR 11

12 THE TOP 250 INTERNATIONAL CONTRACTORS #100 BAUER AG of Germany reports that the company was established in 1790, making it the oldest contractor on the Top 250 International RANK FIRM 2012 REVENUE $ MIL. INT'L TOTAL 2012 NEW INT'L CONTRACTS $ MIL ANHUI CONSTRUCTION ENGINEERING GROUP CO. LTD., Hefei, China , PAN-CHINA CONSTRUCTION GROUP CO. LTD., Beijing, China , ** MAEDA CORP., Tokyo, Japan , E. PIHL & SØN AS, Kongens Lyngby, Denmark ** CHINA PETROLEUM ENGINEERING CO. LTD., Beijing, China , SUMITOMO MITSUI CONSTRUCTION CO. LTD., Tokyo, Japan , CHINA JIANGXI CORP. FOR INT L ECO. & TECH. COOP., Nanchang, China IRCON INTERNATIONAL LTD., New Delhi, Delhi, India YAPI MERKEZI INSAAT VE SANAYI AS, Istanbul, Turkey , CONSTRUCOES E COMERCIO CAMARGO CORRÊA SA, São Paulo, Brazil , CHINA ZHONGYUAN ENGINEERING CORP., Beijing, China NA ** CHINA ALUMINUM INTERNATIONAL ENGINEERING CO., Beijing, China , ELLAKTOR SA, Kifissia, Greece , ZHONGMEI ENGINEERING GROUP LTD., Nanchang City, Jiangxi, China ALBERICI CORP., St. Louis, Mo., U.S.A , NISHIMATSU CONSTRUCTION CO. LTD., Tokyo, Japan , ** EMPRESAS ICA SAB DE CV, Mexico City, Mexico ,009.0 NA ** AEGION CORP., Chesterfield, Mo., U.S.A CHINA YUNAN CONSTRUCTION ENG G GROUP CO. LTD., Kunming, China , ** PROMSTROI GROUP LTD., Moscow, Russia KAYI INSAAT SAN. VE TIC. AS, Istanbul, Turkey CHINA WU YI CO. LTD., Fuzhou, Fujian, China , THE SHAW GROUP INC., Baton Rouge, La., U.S.A ,129.8 NA KONTEK CONSTRUCTION, Istanbul, Turkey GRUPO EMPRESARIAL SAN JOSÉ SA, Tres Cantos, Madrid, Spain ALARKO CONTRACTING GROUP, Gebze/Kocaeli, Turkey , , WILLBROS GROUP INC., Houston, Texas, U.S.A ,744.7 NA KINDEN CORP., Tokyo, Japan ,063.0 NA PREZIOSO TECHNILOR, Vienne, France LIMAK INSAAT SANAYI VE TICARET AS, Ankara, Turkey IMPRESA PIZZAROTTI & C. SPA, Parma, Italy , ESER CONTRACTING AND INDUSTRY CO.INC., Ankara, Turkey NA ** ZHONGDING INTERNATIONAL ENGINEERING CO., Nanchang City, China RIZZANI DE ECCHER SPA, Pozzuolo del Friuli (UD), Italy SINOSTEEL EQUIPMENT & ENGINEERING CO. LTD., Beijing, China , CHINA HUANQIU CONTRACTING & ENGINEERING CORP., Beijing, China , , ** LOTTE ENGINEERING & CONSTRUCTION CO. LTD., Seoul, S. Korea , TEPE INSAAT SANAYI A.S., Ankara, Turkey ** ASLAN YAPI VE TICARET AS, Ankara, Turkey METAG INSAAT TICARET AS, Ankara, Turkey ** SUNIR CO. (IRAN POWER & WATER EQPMT. SVCS. EXP. CO.), Tehran, Iran LAYNE CHRISTENSEN CO., Mission Woods, Kan., U.S.A , HABTOOR LEIGHTON GROUP, Dubai, U.A.E , POSCO ENGINEERING CO., Seongnam City, S. Korea NANTONG CONSTRUCTION GROUP JOINT-STOCK CO., Nantong, China , RASEN INSAAT VE YATIRIM TICARET AS, Istanbul, Turkey JIANGSU NANTONG NO. 3 CONSTRUCTION GRP. CO. LTD., Haimen, China , SUMMA TURIZM YATIRIMCILIGI AS, Ankara, Turkey ** JIANGSU ZHONGXIN CONST. GROUP CO. LTD., Qidong, Jiangsu, China , ** HAZINEDAROGLU CONSTRUCTION GROUP, Istanbul, Turkey GENERAL BUILDING MANUFACTURING POWER WATER SUPPLY SEWER / WASTE INDUS. / PETROLEUM TRANSPORTATION HAZARDOUS WASTE TELECOM enr.com August 26/September 2, 2013 ENR 12