Wednesday, August 26, 2009

Managing Refurbishment Construction Projects in Commercial Port

Refurbishment Projects is one of the elements categorized in the construction projects. It is as works or projects that involve aspects of manage peoples, resources, cost and processes using the right methods and approached to meet the target or objectives. Wikipedia defined that Refurbishment (restoration) is the process of major maintenance or minor repair of an item, either aesthetically or mechanically. It can be seen as physical or internal (virtual) system that related to the performance upgrade. It is very complexity in term of designing the scope of work as well as to ensure the objective of projects achieved. The uncertain of refurbishment projects, means that in most cases, the contract scope of works are not complete when the project start on side. (Rahmat 1997). Therefore the in complex and uncertain works in refurbishment projects, the design phase has to often overlapped with the construction phase. It will involve cost and time variation and also required extra participation of design and construction teams to works extra ordinary effort compare to the normal process for new projects.

The refurbishments project is identified as minor in represents as a total of construction project in Developing Countries. The numbers refurbishment projects deemed very much less against new projects. However, for the developed countries that the major of construction activities are categorized as Refurbishment. It is evolution of growth from new project to refurbishments as the nation and countries change from Developing Countries to Developed countries. (Charles Egbu 1996). In Malaysia perspective as similar with other developing countries that refurbishments is represent very much less compare to new projects. 1st Malaysia Plan (1957) until 9th Malaysia Plan (2007) shown that refurbishments is deem as small industries generated KDNK compare to the construction of new projects, services industries as well as manufacturing works. The need of new basic facilities and fundamental infrastructure are more effective to be constructed as a new project instead to refurbish the building or facilities already built. The less attractive to implement refurbishment projects in Malaysia can be explained in term of options of cost effectiveness and less hassle as described in the the example.

It is much advantage to construct new factory for expansion in new township like Shah Alam or Bangi instead to remain used and refurbish the old factory constructed by former British Companies at Jalan Tandang Petaling Jaya. The similar case of High-rise building for corporate HQ building, that most of GLC or MNC in Malaysia focuses on cost effectiveness to demolish old traditional shop houses at “Golden Triangle” or Damansara for construction a new projects instead to refurbish of “Straights Building” at Jalan Raja Kuala Lumpur. The new development of town ship for Federal Governments at Putrajaya is an example of more advantage to have new buildings, new technology application, integrated infrastructure and intelligent functional as new project instead to refurbish the old complex in Jalan Duta or Jalan Petaling Kuala Lumpur. It is the Malaysia scenario projects construction since independent year 1957 that growing much on the new projects instead to refurbish old builsing.

However as refurbishment projects initiative generated from the building and infrastructure life span worn off or requirement new upgrading to enhance functional, there are still many refurbishment project been carried out using the same building especially that carry esthetical value or National iconic such renovation Parliament Building cost RM170Million (JKR 2006), refurbishment of Istana Alam Shah (1909) cost RM330Million (SUK Sel 2007), Ibu Pejabat Kontigent Polis Selangor(1893) to Galeri Di Raja Sultan Salihuddin Abdual Aziz Shah cost RM70Million. The numbers of project as categorized as Refurbishments is still minor against compare to the new projects constructed.

Malaysian’s commercial ports were existed since heritage from Malacca Sultanate 15th century. It were remain functional as traditional maritime ports upon colonised by British 1824 to 1957. British’s devide and rule approach had focus the developments that more benefited to the British trade activities. The modernization maritime port started in 1893 at Port Weld Perak, Port Swettenamham(1909) and Penang Port (1917) by British is still consider as traditional port to cater junks and small conventional vessels instead modern by packed cargoes, containerization 1950 and L&G at other world ports. The containerization in commercial port stated in Malaysia in 1972 in Port Klang(formerly known as Port Swettenamham) while modern LNG terminal at Pasir Gudang (1982) to facilitate Malaysia Trade and petroleum export from Malaysia.

The refurbishments in maritime port are when Malaysia policy of industrialization and Free Commercial zone initiated since 1982. The value of land surrounding port areas was drastically increased for industries and commercial trade activities. Port Authorities or Port Terminal Operator (Privatization 1986) has to develop new facilities and infrastructure makes the port relevancy. The external driven factors of evolution in maritime industries for cost effective using Mega Vessel and containerization of cargoes (IMO1997) cause the ports has to look the options to develop new terminal distance from current facilities or to refurbish the current facilities or building to meet and cater new requirement of modern terminal. The cost to develop new port is very substantial and will required involvement of long term study in term of aspect of maritime and national trade. The fasters to ease port to be relevance in cater new requirement is refurbishment.