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PROGRAMME: BACHELOR OF COMMERCE IN SUPPLY CHAIN MANAGEMENT

MODULE: PROJECT MANAGEMENT

Total Marks: $70$

QUESTION ONE $[40]$

CASE STUDY : King Shaka International Airport, Turner & Townsend

King Shaka International Airport $($KSIA$)$ opened on $1$ May $2010$ in advance of the start of the

$2010$ World Cup in South Africa. The development took just $32$ months to build and boasts a

state$-$of$-$the $-$art passenger terminal building that handles both international and domestic

passengers. It can cater for $7\mathrm{.}5$ million passengers per annum and incorporates a multi$-$storey

car park, a cargo terminal facility, a fuel farm and fuel infrastructure, control tower and offices,

the $3,700$ metre runway and airfield. Stakeholders in Kwa Zulu Natal had submitted many

applications for development of the airport before, but the $2010$ football event acted as a

catalyst for permissions being granted. The South African lead consortium $-$ IIembe $-$ won the

project and worked with global professional services organisation, Turner & Townsend, to

develop the airport.

Objectives

The objective was to transform an area of South African landscape into a billion dollar greenfield airport development that could efficiently manage $7\mathrm{.}5$million passengers each year. The

project aimed to boost the tourism in the area and to shift the focus towards the adjacent areas

for associated trade and development. Key objectives for the Ilembe project services team

were to project manage the delivery teams effectively to meet deadlines, to produce accurate

reports of all production activity and to put in place people, processes and systems to ensure

technical documentation was issued on time. For Turner & Townsend, the project presented

a unique opportunity to demonstrate that they have the necessary global presence to take

their people, tools and innovation and deliver the client objectives in a culturally diverse

environment.

Resources

Key people from Turner & Townsend UK visited the Ilembe consortium in early $2007$ to

understand the principle requirements, and to map out the required procedures, systems and

tools. Due to obvious budgetary constraints the project team was built with as many locally

employed people as possible, whilst ensuring the necessary skill transfer from the UK offices

to South Africa took place. Knowledge sharing through online meetings and the use of Turner

& Townsend$$s intranet system proved successful. The ability to draw on the resource and

skills base from the UK was helpful yet not all UK best practice worked well for KSIA and had

to be adapted to suit local project conditions. Cultural differences in the levels of planning,

expectations on site management, budget approval justification etc, meant that certain levels

of project management and controls did not fit, and therefore had to either be shelved, or

adjusted to suit. A good example of this was a formal stage approval process. The UK teams

found significant benefit and expectation from project clients to ensure that this procedure was

rigorously applied to commencing work. The Ilembe consortium however, was confident in

other forms of phased project approval and thus the project team adapted their services to

support the clients preferred management and governance approaches.

Challenges

In a nutshell, the challenge was simple: transform a barren area of South African landscape

into a billion dollar green$-$field airport development that could efficiently manage $7\mathrm{.}5$ million

passengers each year. Given the South African role as host for the FIFA Football World Cup

in $2010,$ the project was subject to a very tight timescale for design, construction, integration

and handover to the operator. These schedule pressures, together with the constraints of an

extremely competitive fixed price, lump sum EPC budget contract, all made for a remarkably

challenging project. Furthermore, owing to the location of the development in an area of

outstanding natural beauty in Kwa Zulu Natal, the decision from the Department of the

Environment to start the development took longer than expected, which delayed the project

by $77$ days.

Co$-$ordination

Faced with delays to the schedule, Turner & Townsend assisted the Ilembe team to set in

motion a plan to meet the $1$ May $2010$ deadline. This partly involved the formation of project

clusters combining designers, builders and cost managers to ensure consistent understanding

of the design and integration and in order to drive the schedule. The cultural differences in

updating and planning construction schedules all required time to be spent understanding the

pros and cons prior to trying to enforce a UK adopted approach where a local, more wellknown method could be just as effective. For example, risk management concepts were very

foreign in the KSIA environment so a less formal method was adopted. One method of

controlling these