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Magazine Issue 1 - Winter 1996
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 COSTAIN (ECOSTAIN?)NEWBURY BYPASS On August 6th 1996 Costain started work on the Main Construction Contract for the infamous Newbury Bypass The bypass flattens 3 SSSls in picturesque Heart of England, displaces the internationally Important Desmoulin's Whorl snail and permanently buries many important archaeological sites. It is agreed by all (including the DoT) that it won't solve Newbury’s traffic problems; its importance is as a key link in the European road network in which role it will encourage long distance traffic. It has had huge media coverage, and has seen what is perhaps the UK's biggest ever environmental protest. Costain had twice previously bid for the contract, losing out because of delays in the notorious scheme. Their rabid enthusiasm for the Newbury contract puts them at the top of the eco-acivist's hit list. COSTAIN AND PFI Costain are members of the consortia National Road Operators, which has bid for several DBFO road schemes and SSA, which has won contracts to build Bridgend prison (on the basis of price per prisoner per day) - loads more room to punish protesters, perhaps? NATIONAL ROAD OPERATORS Construction: - Bovis, Costain. Consulting engineers: - Frank Graham, LG Mouchel & Partners Advice: Nat-West Markets (financial), Baker & McKenzie (legal). Royal Automobile Club (traffic) Also: Centre File(data processing for automated tolls), Total Facilities Management SSA Contruction: -Costain, Skanska Consulting engineers: - WS Atkins Architects: -Seifert Security: - Securicor FINANCIAL SITUATION Recently, Costain have been in desperate financial straits, losing money and seeing their share price plummet steadily for the last few years. They have responded to this by shedding 'non-core’ operations such as their concrete plants, and their loss-leading US mining interests (which no-one whants to buy) to concenrate on their 'core' contracting businesses. When the share price hit 39p this summer (compare 326p 1987), trading was suspended and they had to seek a rescue take-over bid, with Malaysian firm Intria Berhad buying a 40% share. Costain’s banks also had to swap £336 million of the group's debt for equity (i.e . a shareholding in Costain). The company is on its knees! INTRIA BERHAD Intria is a little-known, small construction firm, for whom Costain is a stepping stone to development into a ‘global infrastructure business' it gives Costain both cash, and a hot-line into the lucrative East Asia infrastructure business. Intria is owned by Mekar Idamin Sdn. Bhd. It owns its 40% Costain Group share through York Place Ltd, then Daedalus Projects Ltd. (93% ownership). The first deal with Intria has just been struck - Costain has been appointed to cary out a feasibility Study for a £750m third crossing from the island of Penang to the Malaysian mainland. Intria already has a concession to operate the existing bridge, and has been appointed by the Malaysian government to study this new one. Sounds a bit monopolistic to me - wonder whose pocket Intria is in? COSTAIN & BALFOUR BEATTY: PARTNERS IN PIRACY Currently the UK's largest marine civil engineenng contract, the £200m Cardiff Bay Barrage, is being constructed by Costain, Balfour Beatty and others. The barrage will enclose the tidal estuaries of the rivers Taff and Ely in order to create a new lake instead. The idea is to save property owners round the bay from having to look at the mud revealed at Iow tide, and hence to boost the value of their assets. Of course it is only right and proper that taxpayers money should benefit rich people rather than those freeloading estuarine birds. Objections to the project have come from local residents organisations, worried about the implications of water-logged ground on their communities (could be a great spot for malaria if global wamming projections hold true; so long as the Gulf Stream does not fail, that is) and from environmental groups who oppose the loss of natural habitats that the scheme will entail. Significant populations of wetland birds use the Severn Estuary as a feeding ground, and Cardiff Bay was designated an SSSI in recognition of that fact. It has also now been realised that, contrary to the photos in the glossy brochures, the t tclosed lake will be unsuitible for witer spons (or indeed most living creatures) because of the build up of pollution from the two rivers.Completion of the barrage project will prepare for the creation of a lovely new docklands development to replace Cardiff’s seriously unfashionable old tidal harbour. The intention is to build a "Canary Wharf' type carbuncle in order to...answers on a poastcard please. Given that the onginal Canary Wharf has proved to be a soeial and economic disaster, Costain and Balfour Beatty are once again demonstrating their total disreguard for history, public opinion and the environment in their pursuit of profit. Is that good business policy or piracy? Contact: Cardiff Earth First, PO Box 7, Cardiff, CF2 4XX tel: Ol222 229 5771 Direct Action Costain’s vulnerability has given impetus to the campaign against them, as imaginative direct action has the potential to seriously put the boot in. Their offices accross Britain have been picketed, blockaded and occupied; protesters have stopped work on their building sites; a national phone and junkmail blockade has tied their communications in knots (their Contracts Manager now has a large collection of twee china figurines, apparently!); actavists have demonstrated at the house of Chief Executive Alan Lovelll; and their sites have even suffered some shocking direct economic sabotage (See also AGM report) All this adds up to a company under severe pressure. This pressure must continue. A national 'Clobber Costain’day is planned for Tuesday November 5th. Light the blue touchpaper! For background info on Costain, contact: c/o PO Box 5544, Newbury, RG14 5FB. |
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| Costain Company Profile Costain Civil Engineering Ltd. is owned by Costain Group plc, through Costain Building & Civil Engineering Ltd. Costain Group plc 11 Westminster Bridge Road, London, SEI 7UE tel:O171 7058444 / 928497 fax:0171 7058599 Turnover: 1995 - £842 m Operating profit: 1994 - (£164m) 1995 - (£117m) (after exceptional items). Business: Engineering & construction (75% (£635m) of 1995 turnover).US mining, residential & commercial property Directors: Sir Christopher Benson (Chairman), Dr. Azman Firdaus, Shafii - (Deputy Chairman), Alan Lovell - (Chief Executive), John Campbell - (Finance Director), Peter Burton, Peter Costain, Richard Wakelin, Abdul Aziz bin Abu Bakar, Abdul Aziz bin Shikh Said, Mohd. Hussein bin Abdu Hamid. Political links: Costain was listed in the 1991 Annual Report of the British Road federation, but claims no longer to be involved. In 1994-95 Peter Costain chaired the Environmental Task Force of the CIEC (Construction Industry Employers Council) Principal Investors: (3/7/96 - ie. before rescue package): Mohammed Abdulmolsin Kharafi & Sons WLC - 19.11% Raymond International WLL 19.21% Environmental Policy: The Group is aware of the environmentaI impact of its work and therefor takes a responsible attitude to environmental issues. The Newbury bypass contract provides an oppertunity for us to demonstrate high standards of working practice. Costain Building and Civil Engineering Ltd. Connaught Road, London E16 2DB tel: 0171 4768783 Directors: William Sperry (Chairman), Mike Quirke (manager, construction & management div.), George May (Manager, civil eng. div ), Paul Sivey (manager, international div ), JM Pocock Costain Civit Engineering Ltd. Costain House, Nicholson’s Walk, Maidenhead, Berks. SL6 1LN. Tel: 01628 842444. Fax 018628 74477 Notes: Costain ranked 14th in the trunk road contractors top 20 in financial years 1992-3 and 1993-4. OFFICE ADDRESSES Costain Civil Engineering, Cardiff CF4 5GG tel: 01222 757 755 Site Office: Cardiff Road. Maesglas, Newport. NP9 1 QW Tel: 01633 221134 42 Llanbourne Cres. Cardiff CF1 1XX tel: 01222 762627 2 Ensign House, Parkway Ct. Plymouth. PL6 8LR tel: 01752 665671 Costain Building & Civil engineering, Anchor Bay Wharf, Dartford, Erith. DA8 2AW tel: 01322 340811 28St Pauls Sq. Birmingham, B31RB, tel: 0121 2122255 Unit 32, South court, the courtyard, woodlands, Bristol, BS12 4NH tel: 01454 201380 132 Winchester rd. Chandlers ford, Eastleigh. SO53 2DS |
