Roy Hill Iron Ore

We have provided project management services for an integrated mine, railway and port operation with a capacity to deliver 55 MTA of iron ore from the Roy Hill deposit.

 

Location

  • Pilbara Region, Australia

Client

  • Roy Hill Holdings Pty Ltd

Project Status

  • Ongoing

WSP has played a key role in this project, which includes a 344 km heavy haul railway from mine to port, and a new two-berth port facility at Port Hedland. It also encompasses all non-process infrastructure including airstrip, power, water, access roads, accommodation villages (temporary and permanent) and facilities to support ongoing operations.

 

Best Practices

Engaged as the Project Management Contractor (PMC), WSP provided the full scope of assurance services to successfully deliver the project, working closely with the Roy Hill management team.

 

The project used an Engineering, Procurement and Construction (EPC) form of contract, with Samsung C&T executing the mine process, rail, and port facilities, and multiple contractors undertaking the non-process infrastructure works packages. Monthly capital expenditure peaked at AU$400 million in August 2014 and practical completion of the EPC contract with Samsung C&T was achieved in May 2016.

Bridges
11
Locomotives
21
Railway length
344 km

Pillars for Success

Four main elements contributed to the success of the PMC role – a risk-based approach, a strong commercial management strategy, a high-performance team culture, and the adoption of full transparency with frequent communication between the team and the client.

 

The risk-based approach enabled potential issues to be identified early so that appropriate plans and commercial positions were discussed openly and worked through with the client, enabling effective actions to be implemented in a timely manner.

 

On Time and On Budget

WSP’s role involved assuring all works were delivered according to the overarching project requirements and within the agreed timeframe and budget, through the testing, commissioning and handover phases.

 

As the PMC, we provided a range of services across the procurement life cycle – from contracting strategy through to contract close-out. This included implementing robust project contract management systems where contracting, procurement and subsequent expediting and contract administration processes are audited, verified, analysed and reported in a timely manner to minimise adverse time and cost impacts to Roy Hill.

 

Comprehensive Services

Our team delivered:

  • Contract superintendence and contract management
  • Project controls including payments, cost forecasting, schedule updates, commodity tracking, consolidated reporting as required by financial institutions and forecasts at completion
  • Health and safety, quality and environmental assurance
  • Industrial relations management
  • Total project reporting (daily, weekly, monthly)
  • Trend and change management such as the management of contract notices, change notices and change orders
  • Total project interface management
  • Commissioning and handover management
  • Assessment of the capability and suitability of potential contractors and subcontractors
  • Review and acceptance of all contractor project management documentation including project execution plans, project baseline schedules, project controls plans, project reporting plans, change management plans, project completion plans and associated procedures
  • Facilitated the Approval Authority’s timely review of contractors technical and non-technical deliverables
  • Supported Roy Hill in the start-up of operations, maintenance and asset management philosophy, policy, strategy and objectives
  • Records and document management
  • Ad hoc project management services and advocacy.

 

Key Achievements

The Roy Hill Iron Ore project has received several prestigious industry awards including: 

  • Project of the Year Award 2016 – Project Management Institute of Australia 
  • Biennial Railway Project Award 2016 – Railway Society of Australasia
  • Australian Excellence Award for Project Management 2016 – Engineers Australia (WA)
  • Australian Excellence Award for Resource Development 2016 – Engineers Australia (WA)
  • Engineering Distinction Award 2016 – Engineers Australia (WA)
  • High Commendation, Collaboration category 2016 – Consult Australia