Showing posts with label bitumen paint. Show all posts
Showing posts with label bitumen paint. Show all posts

June 13, 2018

Preteder Walkaround

NHAI to do pre-tender health check on highways, share data with bidders

Appoints Crisil, Deloitte and Mazars to conduct due diligence of nine stretches that would be tendered this month

Megha Manchanda  |  New Delhi 
road, road construction, highway
The Highways Authority of India (NHAI), which is currently tendering road monetisation projects, has started of a unique data-sharing plan with prospective bidders. It is undertaking the task of conducting due diligence for the contracts prior to their bidding.
will ascertain the health of TOT or toll-operate-transfer projects, which would then be offered to international investors for their operation and maintenance.
An NHAI-appointed consultant would establish a data bank of the road assets that would be tendered. These O&M contracts are usually for 20-25 years and hence the prospective bidders require a detailed blueprint of the contract before submitting bids.
“Three consultants have been appointed--Crisil, and Mazars--for conducting the pre-bid due diligence of the nine stretches that would be tendered by this month,” a industry executive told Business Standard.
As part of the due diligence process, the consultants would establish how good the asset is, the age of the asset and material used in the construction of that road. The data created would then be put in public domain by the for the prospective bidders to study before submission of their bids.
Three bundles of highway stretches would be tendered by the NHAI this month. A batch of nine stretches across Odisha, West Bengal, Assam and Bihar, a bunch of seven stretches across Tamil Nadu, Telangana, Rajasthan and Gujarat and another bundle of 10 stretches across UP, Bihar and Jharkhand.
This is the second round of bidding for TOT projects after the one in March, when a joint venture of Macquarie and Ashoka Buildcon bagged the first bundle of road monetization projects for Rs 96.8 billion.
These projects were offered to the international players after the Cabinet Committee on Economic Affairs, in August 2016, authorized the NHAI to monetize public funded highway projects, which are operational and are generating toll revenues for at least two years after the commercial operations date through the TOT model.
NHAI to do pre-tender health check on highways, share data with bidders
Under the TOT model, the concessionaire pays a one-time fee upfront and operates the toll for 30 years. This model is applicable to engineering, procurement and construction and the built, operate and transfer (annuity) highway projects that were commissioned at least two years ago.
Funds generated from highway monetisation would be used for new infrastructure programmes such as the Bharatmala.
First Published: Tue, June 12 2018. 22:22 IST

April 17, 2018

Project Delays

Another year of delays along Highway 401 in SDG and Cornwall

By Marc Benoit, Special to the Cornwall Standard-Freeholder
<p>Projects in the works for 2018 along Highway 401 in Cornwall and SDG. Map produced by the Ontario Ministry of Transportation.</p><p>
Handout/Cornwall Standard-Freeholder/Postmedia Network
Projects in the works for 2018 along Highway 401 in Cornwall and SDG. Map produced by the Ontario Ministry of Transportation.
Handout/Cornwall Standard-Freeholder/Postmedia Network
Drivers can expect to spend a bit more time in traffic this summer as  they navigate Highway 401 through SDG.
SDG council heard from representatives from the Ministry of Transportation on Monday, as six major construction projects along the 401 corridor are planned for 2018, alongside 20 major projects provincewide. The projects are expected to create delays and frustrations for drivers, which the Ministry of Transportation is hoping to address.
Frank Pinder and Mike Delugt presented the MTO plan for southern Ontario highways, and answered questions and concerns from staff members and councillors in relation to the detours and delays planned for the summer.
Wales Road underpass and Avonmore Road underpass near Long Sault are slated for construction work, along with the Pitt Street overpass, the Bainsville Road underpass, the South Raisin River culvert, and paving along the stretch between Lancaster and Cornwall. Of these, the Avonmore Road work is a carryover from the 2017 season. It was initially supposed to be complete last year.
Each project will require a 12-hour closure in each direction, leading to an increased volume of traffic on local roads.
SDG staff members and councillors expressed concern over the impact the closures may have on the community. It will also be another summer — the third or fourth — that there is Highway 401 construction taking place within SDG and Cornwall.
Couns. Jim Bancroft and Tammy Hart pressed the delegation from the MTO about the Avonmore project, as it had been originally slated for completion last year. Due to issues with the tender, the project has carried over to the current season.
“Avonmore Road is still closed and that’s a big concern,” said Ben de Haan, director of planning for SDG. “That’s meant disruption for the residents. It impacts how we plow the roads, patrol, and maintain them. So there is quite a bit of impact, even if it’s a little each day.”
The company tasked with completion of the project, Cruickshank Construction, is the same company in charge of completing the Wales Road project. de Haan noted there is concern at the municipal level the company will not be able to complete the project on time, leading to a similar situation as Avonmore.
“We want assurances that the road will be open before winter,” said de Haan.
To better prepare motorists for the summer of detours and delays, the MTO is promoting its Twitter feed as a way to stay informed, along with the Ontario 511 website, alongside digital signage posted along the Highway 401.
“Drivers will have the information they need to plan ahead,” said Delugt.
As part of the Southern Highways Program rolled out by the provincial government, the MTO had to scale back the number of projects across the province for the current season.

October 2, 2017

Nothing world class about TenderSURE roads

By Ashwini M Sripad  |  Express News Service  |   Published: 02nd October 2017 04:38 AM  |  
Last Updated: 02nd October 2017 07:21 AM  |   A+A-   |  
Cunningham Road, developed under the TenderSURE project, gets invariably flooded every time it rains; (below) potholes have also surfaced on some of these roads
BENGALURU: When conceptualised, TenderSURE roads were termed as world class. The recent heavy rains have, however, exposed their poor quality as well as the tall claims of the officials concerned. Sunday night’s rain left the TenderSURE roads waterlogged in the city yet again, with people wondering if the crores of rupees spent on them literally went down the drain!“It was difficult to commute on the water-logged Cunningham Road on Sunday night. Water was gushing on to the street through manholes and drains, and an unbearable stink made matters worse,” said Arun Jha, a resident of R T Nagar.
According to traffic expert Prof M N Sreehari, TenderSURE roads are world class only in terms of the money spent. The quality of the roads is as bad as normal asphalted roads. “On all TenderSURE roads, footpaths have been made wider without conducting any pedestrian user survey. The paver blocks on the footpath have been laid unscientifically. These are laid on the top layer of the footpath. The ground below them is not properly layered, which results in an uneven top layer and gaps in between the blocks. Whenever it rains, water percolates through them, leading to water stagnation and damaged road surface,’’ he said.
Many of the TenderSURE roads built in the first phase have sewer lines beneath them, including Richmond Road, Residency Road and Cunningham Road. “At times, if there are clogged drains, we end up digging the roads to clear the blockage,’’ said an official.
BBMP Commissioner Manjunath Prasad agreed. “Ideally for TenderSURE roads, all the utility should be shifted to one side of the road. But in the first phase, BWSSB did not shift sewer lines on some of the roads. This is one of the reasons for flooding,’’ he said. However, he was quick to add that the problem has been rectified in the works undertaken during subsequent phases.
Another reason for water clogging is the sweeping practices. “Pourakarmikas often push dust and waste towards gratings on the road surface that have been put to let rainwater into the drain. This results in clogging,’’ an official said.
However, K T Nagaraj, BBMP Chief (Projects), maintained there is no problem with TenderSURE roads and they are indeed world class. Flooding, Nagaraj claimed, is because of heavy rains. The gratings have small outlets for the rainwater to enter the drains. “If there is more water and smaller outlets, water will obviously flow slowly. On TenderSURE roads, water does not clog for more than three hours,’’ he added.  
Of the proposed 45 TenderSURE roads, nine are complete. Works on another three will be finished soon. Tenders will be called for 13 more roads under  phase II. The cost of these roads was around `7.5 crore per km, including shifting of utilities, wider footpath and bitumen-mixed black-topping. BBMP officials boast of 25 to 30 years durability of these roads.

September 28, 2017

Another Tender War


Work on white-topping of roads is set to begin and around 30 roads stretching 93.47 km will be white-topped in two phases. The tender process for the project, which has been divided into two packages, has been completed.

The first package has been handed over to NCC which involves six roads and six circles. The second package involves 24 roads and the contract has been handed over to Madhukan. The companies have been given 11 months to complete the project.

“Roads will be white-topped on the lines of Nrupathunga Road. Work will start by October,” said Bruhat Bengaluru Mahanagara Palike (BBMP) commissioner N Manjunath Prasad.

He also said the stretch along Mysuru Road-Sumanahalli Junction-Goraguntepalya-BEL Circle-Hebbal-KR Puram will be taken up soon since the traffic here is heavy. “We are trying to reduce the inconvenience caused to motorists as much as possible and hence we have instructed the contractors to complete the project within six months,” said Prasad.

“We need to completely bar vehicular movement during the project. We will create alternative routes during this period in consultation with the traffic police,” said K T Nagaraj, BBMP chief engineer, (projects).

He also said work will 
be taken up according to the availability of the paver machines which are used for white-topping.

Around six circles are being white-topped in the project. The circle near Ramakrishna Ashram, Lalbagh West, North and East gates, near Siddapura Teacher’s College and Bhashyam Circle will be white-topped. A total of Rs 21.24 crore is being spent on this. “These works come under Package 1,” said Nagaraj.

White-topping, or concretisation, gives roads a life of up to 25 years and results in fuel savings of 14%. The Centre for Smart Cities (CSC) Research had recommended that white-topping helps in reducing traffic and increasing the lifespan of the road. The state government has allotted Rs 2,000-3,000 crore under the Nagarothana scheme for this project.

Source- Deccan Herald

September 22, 2017

Elevated road to avoid local traffic


The cost of the entire project has been estimated at ₹1,800 crore, a NHAI official said.

GURGAON Updated: Sep 20, 2017 21:57 IST
Dhananjay Jha
The elevated road will start from Gurgaon-Delhi border and end near the Basai railway overbridge in Sector 100.
The elevated road will start from Gurgaon-Delhi border and end near the Basai railway overbridge in Sector 100. (HT File)
In what could spell major relief to city commuters and homebuyers living sectors 80 to 115 along the Dwarka Expressway, the National Highways Authority of India (NHAI) is all set to construct a 10km elevated road. The tenders for the project were floated on Monday.
The elevated road will start from Gurgaon-Delhi border and end near the Basai railway overbridge in Sector 100. The cost of the entire project has been estimated at ₹1,800 crore, a NHAI official said.
Dinesh Yadav, general manager, NHAI, said, “The Dwarka Expressway will be executed in phases. In the first phase, tenders have been floated for the 10km road which will be elevated. The purpose of the elevated road is to separate local traffic from the expressway’s long distance traffic.”
In October 2016, the NHAI took over the Northern Peripheral Road, which is also known as the Dwarka Expressway, from the Haryana government and named it NH 248-B.
The NPR’s custodian authority earlier was the Haryana Urban Development Authority for 18-km portion in Gurgaon between Delhi border and Kherki Daula toll plaza. After NHAI took over it, the length was extended up to near Shiv Murti, Mahipalpur.
Before the NHAI took it over, the Huda had completed the 16.5km portion in Gurgaon and also an RoB on Delhi-Rewari railway track at Basai.
“We have been waiting for the completion of the Dwarka Expressway as the delay has adversely affected other development work in new sectors. We hope the NHAI will complete the expressway and bring us relief. I believe tens of thousands of homebuyers like me are waiting for the completion of their dream homes,” said Prakhar Sahay, a homebuyer.
“This is an important development as it will provide easy access to various sectors and help bridge the connectivity gap along the NPR,” said Pankaj Bansal, Director, M3M Group.
Ravish Kapoor, Director of Elan Group, also hailed the development and called the project “an engine to boost growth in new Gurgaon” by improving better connectivity to the expressway.
The NHAI has been constructing underpasses at Hero Honda Chowk, Rajiv Chowk, Signature Tower and Iffco Chowk. The highways authority constructed a flyover at Hero Honda Chowk and construction is underway for the two elevated U-turns at Iffco Chowk while another U-turn underpass is proposed on the highway near Ambience mall.

September 13, 2017

Tender wars in Africa

SUMMARY The expressway will be one of the most important infrastructure project in the East African Community The Project has been structured to achieve early completion, under a fast-track delivery model, with concurrent design and construction Kenya’s Sh300 billion ‘thank you gift’ road project handed to an American firm on a silver platter has sparked a fresh tender war among implementing agencies.


As attention of country was focused on the August 8, General Election, a small team of government officials were holed in meetings to dot the i’s and cross the t’s on what is set to be the single largest road project in Kenya. The team, largely drawn from the Kenya National Highways Authority (KeNHA) and the Ministry of Transport, had already sent the project draft to the Attorney General’s office for comments and clearance.

Three days before Kenyans lined up to vote, the final signature was put on paper, handing over the lucrative contract to build the 473-kilometer high-speed expressway between Nairobi and Mombasa to a US firm, Bechtel International Inc. Unlike previous announcements of government projects of such scale, there was no press conference from the Ministry of Transport to break the news.

There was also no announcement from State House. Instead, government officials chose to make the announcement at lunch time on Saturday when everyone was training eyes on the political rallies, as the pessimists rushed to the shopping malls to stock pile food and other home supplies in case of  political stalemate. It also not clear why the announcement had to be done in such a hurry and on a day when most government offices were closed. Chinese company The press release sent to media houses at 1.30pm did not have the most important details of the project; the cost.

But as details of the deal start to become available, it is emerging that the mega project has stark similarities to the controversial Standard Gauge Railway (SGR) contract which was handed to a Chinese company in another sweet heart deal in the run up to the 2013 general election.

The Financial Standard has come across some working papers from insiders at the Treasury and the Ministry of Transport that raise sharp questions on why the project had to be announced in a rush and why it was not competitively done. The brief raises a question as to why the American firm was not allowed to compete with others for the tender if at all it was the cheapest in the market. Government insiders are referring to the project a ‘thank you gift’ to America, given in the spirit of reciprocity, for some unspecified support the US government has extended to Kenya.

Both the contracts of the SGR and the Expressway project were signed shortly before the general elections. The firms constructing them are the ones tasked with determining project costs. Worse, both have been single sourced and were entered in the cover of government to government contracts, in deals that reduce the level of public disclosure and scrutiny that open tenders go through. The biggest concern for sources familiar with government financing is that in both cases, these projects are now going to be financed largely from borrowing, coming at a time when the government is exhausting its headroom to stock up any additional debt. Treasury is understood to be concerned that despite having so much debt that it is struggling to repay for the big projects already underway, it will be required to take a commercial loan to finance land acquisition.
The other concern is whether the road is the most important project at this time given that it is coming to compete with the railway even before the dividends of the rail start being felt. Infrastructure projects The deal has also brought back the American government on the front row seat of firms that have bagged big infrastructure projects after being elbowed out by Chinese companies.

A brief by the State Department of infrastructure as it sought concurrence to proceed with the project says Kenya will borrow funds from American lenders (US Exim Bank and through Overseas Private Investment Corporation (OPIC)) and then sign an Engineering, Procurement, and Construction (EPC) contract to build the road on a single source basis - where the engineering and construction contractor will carry out the detailed engineering design of the project, procure all the equipment and materials necessary, and then construct to deliver a functioning facility or asset to their clients.

The brief queries why a previous model financed by the World Bank was abandoned and how it was determined that the single sourcing approach would offer taxpayers better value for money and would be faster than a Public Private Partnership (PPP). “Although the proposal is being referred to as ‘alternative project concept’ or ‘highway development concept,’ it is simply a non-competitive, single source procurement of an EPC contractor who is able to bring financing with it,” the brief notes. Engineer George Kiiru, the head of PPP at KeNHA told Financial Standard that the government changed its focus from a PPP to EPC because it will be delivered faster as compared to PPP. “Achieving commercial and financial close for PPP contracts can take two to three years thereby delaying the start of construction and completion of the project,” Kiiru explained. “A comparative analysis between a PPP model for a 20-30 year concession shows that cumulative repayments under the PPP approach would be higher compared to the alternative approach with ECA (US Exim/OPIC) support,” Kiiru said. The brief from the State Department of Infrastructure however suggests that there is no reason to suggest that the construction will take longer under the PPP arrangement. “Indeed, there are strong arguments that overall construction period may be shorter under the PPP project as it splits construction between three different EPC contractors. In any event, the constraining factor is always likely to be land acquisition, so it would be a mistake to assume that the Bechtel proposal can deliver construction completion more quickly,” the brief notes.

 KeNHA says the government is yet to determine the exact cost of the project and is waiting for a complete detailed design, which is yet to be undertaken, before it can determine the actual cost. KeNHA also refused to give a cost range of the project on grounds that it did not want to speculate. This is despite the fact that costs are the first considerations in deciding whether or not a project is viable. “This project is a government to government initiative. The US Government nominated Bechtel International to work with the implementing agencies in Kenya to develop the project,” Kiiru reckoned. KeNHA explained that in 2015, the governments of Kenya and the US signed a memorandum of understanding for development of priority infrastructure projects supporting Kenya’s Vision 2030. Kenya later held discussions with the US government, for development of the highway. The American government through the US Exim Bank has provided a letter of support to Bechtel for the Expressway under a proposed government-to-government agreement. “The US Exim Bank has shown interest to finance the project together with other US Export Credit Agencies such as the Overseas Private Investment Corporation (OPIC),” KeNHA said in its response. He said that the Nairobi–Mombasa Expressway will be constructed as a Toll Road, and upon completion, the Government will procure and assign private firms to operate and maintain the highway. Part of the tolled fee shall be applied towards repayment of ECA Loans. KeNHA says a feasibility study has been completed and it shows that the project is viable.

“The expressway will be designed for consistent speeds of 120kph, hence reduce travel time from Nairobi to Mombasa from the current 10 hours, to about four hours.” A source at Treasury who spoke on condition of anonymity said that the plan was to get a private party to finance, build and operate the road for a 30-year period as per a feasibility study financed through a World Bank loan. He revealed that the feasibility study had concluded that the PPP route offered better value for money than the traditional EPC procurement approach. “There is little chance that a contract not competitively procured will be cheaper than an international competitive tender,” noted the source at Treasury who understands government funding procedures. The source seemed to agree with part of the State Department of Infrastructure brief that suggests that Kenyans may not get value for money from a non-competitive process. The brief says Bechtel’s construction costs per kilometer are higher than estimates presented to the Ministry by PricewaterhouseCoopers. Bechtel’s costing proposal is estimated at Sh600 million per kilometer compared to Sh500 million per kilometer estimate given by PWC ($6 million Vs $5 million). “The per kilometer costs under the PPP proposal includes all taxes and duties while Bechtel’s proposal assumes complete tax exemption for the project (corporate tax, income tax and import duties) - which could reasonably be assumed to cost the Government of Kenya an additional $1 million (Sh100 million) per kilometer,” the brief notes. It argues that as part of the American firm’s proposal, an advance payment of $300 million (Sh30 billion) and also a payment of $100 million (Sh10 billion) as ‘establishment fee’ will be required. “So Bechtel will be given $400 million  (Sh40 billion) in funds and highly cash positive before the start of the project whereby the Government of Kenya will be paying interest on this sum from day one as this will be drawn immediately by Bechtel at contract signing,” the brief notes. There is also a further $60 million (Sh6 billion) of design management fees. The proposal from the American firm excluded all relevant taxes. The Government is pushing for the deal on grounds that the US firm is one of the biggest construction companies in America and that this should give Kenyans comfort. Since the firm will also be seeking financing on its own, it also takes away the initial headache of having to source for financing. But what the government is not saying is that Kenyans will eventually pay a premium price for it in one way or another. Bechtel is also not free from controversies in overseas countries where it has operated. For example, it is fighting some bribery allegations in a Saudi Arabia family feud, which is now in court.

There were other allegations on using middlemen named in British courts to win a contract in Abu Dhabi to build a petrochemicals plant. A former vice president of the firm was also sentenced to 42 months in prison for accepting Sh520 million in kickbacks to manipulate the competitive bidding process for the State run power contracts in Egypt. The other point of conflict is the sharing of risk. It is understood that the American contractor allocates itself the time and materials risk but passes on the price, quantity and overrun risks to the Kenyan taxpayer. The project was expected to start by June 2010 but sources say the National Treasury delayed the project because it needed to allow contractors time to carry out due diligence of the project in order to transfer price and quantity risks to the contractors. Unit rates Bechtel contract is based on Unit Rates for elements of work based on historical cost and production data. This exposes the taxpayer to contingent liabilities because unit rates become firm when the design is completed. Though no one is willing to share the estimated costs of the project, the State Department of Infrastructure brief suggests that the contract price will be at least $2.5 billion (over Sh250 billion). The brief says 80 per cent of the contract costs – quantities and prices - are not fixed and this may see the additional costs spill over to the taxpayer Given the other costs associated to the project like getting land, the price of the project could further go up after the design is completed.

A source at Treasury says the project will cost just as much as the SGR, whose contract price was Sh327 billion but other costs such as land compensation and finance costs have pushed it up to near Sh500 billion. “If indeed, Bechtel is cheaper, then they can still tender under the proposed PPP project model and seek for financing themselves from OPIC or Exim Bank at their preferred cheaper rates,” the brief reads. The brief had advised that the proposed method of developing the road under the Bechtel Proposal is not the best to the government, and asked KeNHA not to proceed, instead use the procurement process under the PPP arrangement, where Bechtel would be advised to participate alongside others. This advice was howver overruled.

Read more at: https://www.standardmedia.co.ke/business/article/2001254309/kenya-s-sh300b-thank-you-gift-road-project-to-us-sparks-tender-wars

September 8, 2017

Project Delays

Chennai: The much-awaited Maduravoyal-Port elevated corridor taken up by National Highways Authority in 2007 is likely to be delayed further as it is finding it difficult in identifying consultants, said a state official.

The state and the Centre are responsible for the delay in the project till 2015. The project cost is expected to escalate by at least 15 per cent, the official said.

Five years after suspending ongoing work on the elevated road connecting Chennai Port with Maduravoyal, the state government softened its stand and gave its willingness to allow the project to proceed with certain changes in the alignment along Cooum river, but now the project is pending with NHAI.

According to the National Highways Authority of India sources, the original project cost was about Rs 1,815 crore and the delay means an additional expense of at least Rs 100 crore extra from the original plan.

The state government in 2016 suggested a design change for the elevated corridor on the Cooum river bed from two pillar to single pillar to ensure smooth flow of water beneath. Subsequently union minister for road transport and highways Pon Radhakrishnan conducted field inspections and reviewed the project.

From the date to now there is not much progress in the project, said the state official adding that departments like state highways and Chennai Port are waiting for the early completion of the project as it would decongest a good whole part of Central Chennai and western suburbs, the official noted.

“The Maduravoyal project should have been completed at least four years ago. Both the State and Centre has been ducking over the project thus exposing their incapability to complete a road work.

Chennaiites are suffering traffic snarls and the highways and the corporation has failed big time to address the traffic woes,” said former Chennai mayor M. Subramanian.

Efforts to contact NHAI senior officials for the delay in the project proved futile, but NHAI sources maintained that a re-tender has been floated to identify a new consultant to work on the design change and also exit ramps that would come up along the 19 kilometre project.

Source -Deccan chronicle

September 6, 2017

Road Projects

Contractors finalised for a number of road projects in FS 
MARK STEENBOK 
15:22 (GMT+2) Tue, 05 Sep 2017
Contractors finalised for a number of road projects in FS  | News Article
The Free State Department of Police, Roads, and Transport says there are a number of roads in the province that still need to be fixed.

MEC Sam Mashinini today said that these roads, including the one between Odendaalsrus and Wesselsbron, are not covered in the current financial year and needs attention. He added that since the end of July the department has finalised tenders for successful contractors for a number of road projects in the province. The handover site meetings for, among others, the Kroonstad-Steynsrus, Vredefort-Hoopstad, Vredefort-Viljoenskroon and Bothaville-Viljoenskroon roads commenced yesterday. He says the department needs to maintain these roads once it is completed.
“One of the problems that I am currently giving attention to, is how best do we make sure that the roads in the province are maintained over the long term. I have deliberately asked the different stakeholders to say how,  once the road between Bothaville and Viljoenskroon is completed, we can maintain it. That road is economically viable in terms of the farms there. That road is mostly used and that’s why we are targeting it,” says Mashinini.
He adds that the department’s objective is to build capacity by investing in human resources through skills development. He says the department wants to create a sustainable economic climate in the province and to deliver public infrastructure by using labour intensive technology.
He says from 2008 until last year they have had an intake of 173 contractors of which 83 graduated. In total 78 is still active and engaged in projects in the province.

September 29, 2016

Global Bitumen Market

The global bitumen market is forecast to grow at a Compound Annual Growth Rate (CAGR) of four percent between 2015 to 2020, and the world’s largest energy traders such as the Vitol Group and the Trafigura Group Pte. are in a race to increase their market share.

The bitumen market was valued at around $75 billion in 2014 and is expected to reach $94 billion in 2020, according to a report by Zion Research, titled, “Bitumen (Paving Bitumen, Oxidized Bitumen, Cutback Bitumen, Bitumen Emulsion, Polymer Modified Bitumen and Others) Market for Roadways, Waterproofing, Adhesives, Insulation and Other Applications - Global Industry Perspective, Comprehensive Analysis and Forecast, 2014 – 2020”.

Bitumen is a semi-solid form of petroleum, which is used to make asphalt for roads, waterproofing for roofs, insulation, and adhesives. It is either obtained by distillation of petroleum or is available naturally, such as in Canada’s oil sands.

Bitumen is used mainly in road manufacturing. A surge in road construction activity in Asia will propel growth for the product going forward. 75 percent of the global consumption of bitumen was used for road construction in 2014.

Waterproofing of roofing and building construction was the second major consumer of bitumen in 2014. Increased construction of homes to cater for the growing population is likely to add to the bitumen demand in the future.

Along with roofing, polymer modified bitumen (PMB), which is used as a chemical additive and adhesive, will witness rapid growth compared to other forms of bitumen.

Trucks, trains, and barges have been used traditionally to transport bitumen from refineries to local consumers; however, a drop in supply from the aging refineries in the U.S. and Europe has necessitated the use of oceangoing tankers, to supply the material from its source of production to the end consumer.

Vitol, the largest independent oil-trading house teamed up with U.S.-based Sargeant Marine Inc., which distributes asphalt to customers worldwide to form Valt, which operates the world’s largest dedicated asphalt fleet, handling parcel sizes from 20 metric tons up to 37,000 metric tons through its fleet of fourteen specialist vessels, according to its website.

“It used to be mostly a small distribution business,” Chris Bake, a senior executive at Rotterdam-based Vitol, said in an interview. “Now it is more of a whole arbitrage business requiring a global reach and shipping capacity,” reports Bloomberg.

Trafigura group is also not far behind. Its Singapore-based unit, Puma Energy has added four new bitumen vessels, taking the total number of vessels to 11, which cater to the Asian markets.

“We see a definite upward trend in the number of nautical miles for bitumen,” said Valt Chief Commercial Officer Nick Fay, who estimates an annual increase of about 7 percent. “All the new refineries that are getting built don’t make bitumen,” reports Bloomberg.

The Guvnor Group is planning to invest in the Perth Amboy asphalt refinery and storage facility in New Jersey, which has been shut since 2008, reports Bloomberg.

There is hardly any public information about the bitumen market, which makes it ideal for the large energy traders, who use their energy expertise and global connection to supply to far-off markets.

“There is a perception that the world is going to be more disconnected -- supply and demand-wise -- and we are there to help connect the dots,” Klintholm said.

Nonetheless, increased use of asphalt for roads and environmental concerns with bitumen manufacturing could pose a risk for the growth of the bitumen industry in the future.

By Rakesh Upadhyay for Oilprice.com

August 29, 2016

Asphalt Recycling

Asphalt plant manufacturers agree that recycled asphalt is a valuable resource that is too good to waste - Mike Woof writes

Around the globe there is growing interest in the use of recycled asphalt pavement (RAP). The technology to utilise RAP in asphalt mixes has been available for some time, with a range of asphalt plant manufacturers in the US and Europe having developed a number of solutions. However, take-up of this technology has varied, with the US pushing ahead with the use of RAP while progress has been much slower in Europe. But many European countries are now becoming more aware of the need to lower the reliance on new aggregates through the use of RAP. And other markets, too, are seeing greater interest in the use of RAP, with the Chinese authorities, for example, having set requirements for this material to be used in road building.

Using RAP can lead to substantial savings in both production costs and indirect CO2 emissions. A paper by Ammann’s commercial manager, Peter Maurer, highlights the fact that RAP is not a waste material but one that can be re-used efficiently. This is a key issue that all the specialists building equipment for the asphalt sector, such as Astec, Benninghoven, Günter Papenburg, Intrame, Lintec and Marini, will agree with Ammann upon.

Both the aggregates and bitumen contained in RAP can meet the standards allowing re-use. Adding some quantities of new aggregates and bitumen can ensure that quality is maintained.

Clearly, the use of recycled asphalt pavemen (RAP) will only increase across the globe, with asphalt plant manufacturers having already developed ingenious solutions to make best use of this material.

Maurer’s paper details a number of fundamental points for the use of large quantities of RAP in an asphalt plant, which all of the key suppliers in the market segment would agree with. First, legislation must allow the use of RAP in asphalt mixes. Second, there must be a sufficient supply of the material available to a user to make the investment in the extra equipment needed worthwhile. Assuming that the material can be used and is available, the asphalt plant owner then has to provide separate storage facilities for different grades of RAP being received. Careful monitoring of the RAP supply has to be carried out, with laboratory-based testing to assess the quality. And the higher the percentage of RAP being used in the mix, the greater the importance of assuring the quality of the RAP feed.

Marzio Ferrini, head of product marketing at Marini, emphasised that determining the quality of the RAP is essential. He said that quality testing of road materials being milled off should be carried out so that the contractor knows exactly what grade is being recovered. He said, “You need to know the source of the RAP.”

Ferrini added that weather protection is also important for the RAP storage area, as this helps to reduce the moisture levels in the material, lowering the quantities of fuel used for heating the plant. This is a technical point on which Marini’s rivals are in broad agreement.

Batching-type plants are favoured by users in many markets, because of their versatility and adaptability. Modern batching plants are now often constructed in modular form with prewired components, allowing faster commissioning onsite while they can also be set up to handle a wide range of mix specifications. This versatility in construction also helps these plants to use RAP in the mix (although it is worth noting that continuous-type plants can also be configured to handle RAP).

Accurate weighing of the RAP entering the mixer is necessary to ensure that the correct quantities of materials are used, a point on which Benninghoven’s sales manager Rainer Böllinger, as well as Ferrini and Maurer all agree. The feed conveyor systems can be equipped with load scales on the belt so that the quantities can be monitored continuously.

With regard to the use of cold RAP in the mix, there is considerable discussion too as to how much can be used efficiently, however.

Böllinger said that Benninghoven’s latest granulators play a key role in the production process by breaking up the RAP prior to being used in the feed. Böllinger said, “The granulator is a key factor for high-quality recycling management. You need soft crushing to protect the stone and you remove the fines in the end products. You can increase the percentage of recycled feed in the plant by 5-10%; because you remove the fines efficiently, you don’t destroy the stone and you retain the bitumen.”

The source of the RAP has to be identified and lab testing is crucial to determine the material quality.

According to Böllinger, using the granulator helps recoat the bitumen around the stone and avoids the need for long mixing cycles in the mixer, with a boost to productivity. He said that the material being delivered to the mixer is more homogenous, allowing a conventional mixing cycle of 45 seconds.

Another important feature is the slow feed rate for the RAP into the mixer box, which reduces the quantity of steam being released. Ammann’s and Benninghoven’s burners are controlled by an inverter system, which it claims also helps to boost overall plant efficiency. When the plant has a low level of throughput into the drier drum, the burner reduces the fuel consumption.

Ferrini pointed out that the mix design must be modified to incorporate RAP, while the plant has to have the necessary features to accommodate this. The recipe has to be checked using software, with continual monitoring of all the feed components.

The introduction of the RAP in the feed can generate large quantities of steam from the mixer, so the Marini plants have a special tube that operates under negative pressure as an extractor.

Marini’s approach to allowing a high percentage of RAP into the mix, however, is to use a larger mixer. Because of the heat-exchange process to the cold RAP, the mixing time is typically increased to 50 seconds, compared with the 45 seconds for a conventional mix using virgin materials. Ferrini said, “If you want good quality, you need more time to heat the material and allow the bitumen to cover the stone.”

He said that a batching plant using fresh aggregates and with an output of 240tonnes/hour will typically have a 5tonne mixer and a mixing time of 45 seconds for each batch. But when cold RAP is used in the mix, extra time is required for the heat-transfer process so that the mixing time will be increased to 50 seconds, so to ensure the output remains the same at 240tonnes/hour, the mixer capacity has to be increased to 6tonnes. “The bigger batch compensates for the longer time,” he said. “The more cold RAP you use, the longer the time you need.”

Ferrini said that while higher percentages of cold RAP can be used in theory, this requires a greater energy transfer, and to prevent overheating of the material, even longer times are needed and this will increase fuel consumption significantly. “We can do this but the machine must be specifically designed for it with a big mixer and a big burner and use a very good quality RAP and with a low moisture content.”

Ferrini added that in addition to the technology used for the introduction of cold RAP directly into the mixer, the firm can help increase the percentage of RAP used. This is achieved by adding RAP into the recycling ring on the dryer drum and by combining both technologies, Ferrini said that the Marini plants can reach a recycling rate of up to 60%.

The view from Ammann is broadly in agreement with Marini. And Maurer’s paper on the use of recycled asphalt details how a feed of up to 30% of cold RAP can be fed directly into the mixer. Keeping the moisture of the RAP lower than 2% allows the percentage to go up to 35% or 40%, supported by an intelligent feed of the RAP into the mixer. The paper also highlights how, by using a parallel dryer in parallel flow technology, a feed of up to 60% of hot recycled material can be used in the mix.

However, Maurer points out that Ammann is working on technology to boost the quantity of recycled materials from the current maximum of 60% when using a dried feed, having set a target of 100%. This technology, based on the counter flow drying principle in combination with a hot gas generator, and equipped with some high sophisticated air ducting details, was introduced in 2007 in a wide range of installations. It ensures gentle drying and heating of the RAP, and in some road-construction projects it was possible to use up to 98% of RAP with this technology.

Nowadays, all of the leading manufacturers in the asphalt plant field will be working in this same direction to optimise the use of RAP, although the solutions they eventually deliver may vary significantly.

source- world highways