At the risk of sounding like a broken record, it does seem realistic to say that compared to recent years, the opportunities for large and small scale tunnelling works across the globe are picking up. In this month’s focus on Germany, the overview of the domestic market initially makes rather glum reading. The rapid decline in traffic tunnel construction over the last five years has been dramatic, with the lion’s share of work split between a handful of projects. But then consider the future plans, 75km of urban and rapid transit rail tunnels, 218km of long-distance rail tunnels and 89km of road tunnels, mostly due for commissioning over the next four to five years. All of this in a market considered depressed. In the business section (p14) we see exiting opportunities for foreign parties to win a slice of the Chinese market as Beijing prepares to invite overseas expertise to realise construction of it’s planned 150km metro expansion. This looks certain to extend to other areas of the country. China is not alone in the industry up-turn. Hong Kong is furthering plans for the next stage of its deep sewer tunnels whilst funding has been made available for more highway expansion. In Indonesia, an extensive deep tunnel sewer system is also on the cards for Jakarta. Reading T&TI’s North America issues indicate an assured future for the continent’s thriving underground construction players. In fact, all in all things aren’t looking too bad, on the surface (no pun intended). But there is a problem, and it’s a big one, insurance!
The insurance industry has been rocked in recent years by heavy losses associated with tunnelling projects gone awry. In the UK alone, Heathrow, Hull and Portsmouth have led would be insurers to shy from similar projects claiming that the tunnelling industry provides too large a gamble. This is by no means exclusive to the UK. Following the massive payouts associated with events of September 11th, the insurance industry is understandably questioning whether a possible loss of premium in the region of 4000% makes any kind of business sense at all. Now the issue is, what can be done to rectify this situation before it gets out of hand? In the UK, the British Tunnelling Society has formed a joint working group with the Association of British Insurers with the ultimate goal of developing a Code of Practice for the procurement, design and construction of tunnels and underground structures. This code of practice, when established, will ensure that all parties entering an underground construction project are fully aware, at the earliest stage, of all the risks involved allowing an engineering-wise underwriter to asses a sensible premium. Insurers need reassurance, they are after all, in it to make money.
