Independent analysis reveals dust suppression almost halves costs

By May 29, 2015 Press No Comments

Global-Road-Technology-Dust-SuppressionShort term price pain will produce a dramatic long term gain on a company’s bottom line according to an independent study into an innovative dust suppressant.
Prepared by respected firm Deloitte Touche Tohmatsu for Australian “instant” infrastructure company Global Road Technology, the analysis compared conventional water suppression for road construction and maintenance activities against the specially formulated cross-linked co-polymer dust suppression product GRT7000.
Engineered for use in civil construction, GRT7000 concentrate is diluted with water before loaded into a water tank and applied to any dusty, unsealed road using standard spray equipment.
Deloitte’s analysis concluded that while the initial cost outlay for dust suppression using the GRT approach was higher than the alternative, the ongoing maintenance was significantly less, with equipment utilisation reduced greatly to deliver a break-even cost for ongoing dust suppression very quickly.
The report revealed GRT’s dust suppression product used on the QGC’s road network delivered almost 37 per cent cost saving over two years for QGC, while companies that use the product over a 10-year period could almost halve (45.5 per cent) their costs.
Deloitte used cost-modelling assumptions and industry rates to prove GRT7000’s cost benefits over other conventional water-only dust-suppression options.
This involved preparing a costing in-line with the current industry best practice for each product application and methodology proposed.
Global Road Technology’s chief financial officer Herman Allison said he was not surprised by the findings, which were released earlier this year.
“We always knew our product was the best in the business and this latest analysis from Deloitte has confirmed it,” he said.
“Deloitte has an international reputation for conducting cost-benefit analyses. Because of our global reach, we needed an internationally-recognised brand to confirm our comparative cost benefit claims.”
Deloitte also engaged engineering and construction services firm SMEC to assist with the project.
Its civil engineering and transportation planning consultants worked as independent technical advisers while a specialist quantity surveyor assisted with the identification of the appropriate cost base and operational assumptions to support the financial analysis.
Mr Allison said that together Deloitte and SMEC offered a specialist team with relevant experience.
“Deloitte brought a unique combination of specialist infrastructure advisory services, financial and business modelling and economic analysis experience,” he said.
“It is a global firm with a highly regarded brand which ensured the credibility and independence of this analysis and findings.”
GRT is based in southeast Queensland and operates in India, the USA, South America and Indonesia producing over 40 tonnes of soil specific products a day. In Australia, GRT also works closely with the CSG and resources sector.
The company’s technology and products solve road-stabilisation and dust-control problems for all types of roads from major highways and freeways to haulage, industrial and rural roads, tarmacs, hardstand areas and water repellent pavements.
The technology can be applied into clay, silt, sand and gravel materials to create instant, safer, and sustainable infrastructure.
For more information regarding Global Road Technology or Dust Suppression http://coalfacemagazine.com.au/independent-analysis-reveals-dust-suppressant-almost-halves-costs/