Fluor 2013 Annual Report Download - page 19

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6"-GH-20018-1C0031-N
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INFRASTRUCTURE
During the year, we completed a seven-year
showcase project, the iconic San Francisco-
Oakland Bay Bridge (SFOBB), which opened
for traffic in 2013. This is the largest self-
anchored suspension bridge in the world, and
the largest public infrastructure project in
California history. We delivered a bridge built
to perform safely for 150 years in one of the
most seismically active areas in the world. We
did it successfully on a lump-sum, fixed-price
basis and we met the opening deadline.
We have leveraged this success into a significant
new award, the Tappan Zee Hudson River
bridge project in New York. By applying our
performance experience and innovations from
the SFOBB project, we were able to offer an
innovative design that will save the state of
New York more than a billion dollars. Other
notable 2013 awards included the Horseshoe
project in Dallas, an $800 million highway
interchange that will streamline what is
considered one of the most congested
roadways in the United States. We also won
the program management and construction
supervision contract for the ambitious
Doha Bay Sharq Crossing project in Qatar,
and the project management contract for
a major railway expansion in Saudi Arabia.
Bidding activity for infrastructure projects picked
up significantly in 2013, and several of these
projects are expected to be awarded in 2014.
MINING
The mining industry currently faces a dichotomy—
Capital investments in new projects are down,
yet consumption of iron and copper continues
to rise. We believe a resurgence in capital
spending is imminent, and the necessity of
increasing demand will inevitably drive new
large projects. In fact, the current downturn
should actually create even more urgent
demand over the medium and long term.
The middle class is rapidly swelling in the
most populous parts of the world, namely
China and India, leaving these countries
scrambling to accommodate the growth.
This means increased mineral demand and
new mining developments, and specifically
the kind of challenging mining projects Fluor
is best equipped to provide.
Easy resource extraction is a thing of the
past. Today’s mines are in more remote places
with deeper deposits. They are larger and
more expensive, and must employ advanced
technologies to achieve the necessary
efficiencies for success. Fluor handles these
challenges like no other company can. When
a client needs to develop a multi-billion dollar
mining complex, Fluor is the company that gets
the call. We were entrusted with Rio Tinto’s Oyu
Tolgoi project in Mongolia and others of its size
because we know how to execute and deliver.
In 2013, we began construction on the
$2.9 billion Cerro Verde copper mine project
in Peru. Beyond this major new award, new
mining opportunities were few, but we are
beginning to hear whispers of new activity.
Mining companies do not want to be caught
with limited capacity when commodity prices
rise. Large projects are inevitable, and our
relationships are in place and strong.
We are confident that when our mining
customers’ capital investment programs
return in earnest, we will be working right
alongside them.
2013 ANNUAL REPORT
FLUOR
PAGE
I & I
17