Liquid Assets

Septech is a leading water infrastructure provider. CEO David Heffernan talks about the company’s regional expansion and innovation drive.

Can you give us a bit of your background and your involvement with Septech?

I have been involved heavily in the industry for over 22 years, ranging from designing, installation, project management and commissions through to the CEO position, running a global water, wastewater and infrastructure business. Today I am still very hands on, but our growth plans have me travelling weekly, whereby my role is more strategic, in a business development role.

Septech’s development reflects the evolution of the regional wastewater sector?

Septech Emirates LLC was incepted in 1997 in the Emirate of Sharjah. The founders, after 15 years’ experience in the precast infrastructure and wastewater-treatment industry in Australia, made a strategic decision to establish operations in the UAE, given the projected population and construction growth poised for the coming decades.

After 13 years of operation, Septech has grown to become a regionally-recognised water and wastewater infrastructure company. The group has grown its operations from its initial purpose-built facility in Sharjah to multi-purpose offices and factories in Abu Dhabi, Ajman, Dubai, Sharjah, Ras Al Khamiah and, more recently, the establishment of its regional and international offices in Australia, Oman and Saudi Arabia.

What have been some of the company’s highlights to date?

Over the last 14 years, Septech has partnered with General Electric, Pacsoft, Bellingham Marine and Shuaa Capital, extending its strategic investments in key emerging markets across the region, with landmark projects including the Jumeirah Beach Hotel, Dubai Festival City, Dubai Marina, Saadiyat Island, Royal Yas Marina, Dubai Sports City and Atlantis. Septech has a proven track record to tackle challenges and provide innovative and technology-driven water and utility solutions to local governments, ruling families and private developers. In FY2009 Septech undertook the completion of a number of water and wastewater projects in the UAE. Some of the more recognisable projects have included:
• Saadiyat Island, mobile desalination plant, a million litres a day;
• Saadiyat Island, desalination plant, ten million litres a day;
• Royal Yas Island, marina;
• Jumeirah Beach Hotel, marina; and
• Yas Island sewage-treatment plant, 3.5 million litres a day

Regional expansion is an important part of your strategy?

Given the experience and global partnerships created with leading water and wastewater companies, Septech has been able to extend its product offering from its base in the UAE to its established commercial entities in the Middle East. Part of the structure Septech has developed allows for a large selection of its products to be offered on a domestic basis, allowing for competitive pricing and project implementation techniques that are attractive to the local market.

Moving forward into FY2010, Septech is developing a number of innovative packaged treatment solutions for both the clean-water and wastewater industry sectors to assist governments, contractors and associated developers in their projects.

You have just established offices in Oman and Saudi Arabia?

Septech has spent considerable time in FY2009 establishing itself in neighboring GCC countries in view of engaging in projects over the course of FY2010 and many years to come. In FY2009, Septech successfully established its operations in Saudi Arabia, Oman and Australia. In terms of direction, Septech is focusing on a number of projects in the treated sewage and clean water sectors in Oman and Saudi Arabia, along with identifying a number of marine opportunities that are coming online in the GCC towards the middle part of FY2010. In terms of North Africa, Septech is finalising its commercial entity in Libya to cater for the North African marketplace, along with focusing on specific opportunities in Australia.

In terms of the overall industry analysis, there is a strong acknowledgement that the Middle East has an accelerating water-scarcity issue, driven by population growth and urbanisation. Both are mutually exclusive in terms of their impact on driving the requirements for water and wastewater; however, collectively these elements are providing opportunities for water and wastewater companies to redefine their offerings.

Septech has been identifying a number of market-entry strategies for all the Middle East, which has been more specifically attributed towards the decentralisation of water and wastewater assets versus the conventional centralised infrastructure. In countries like Saudi Arabia, the government has been faced with a number of challenges in terms of its water and wastewater infrastructure, along with more emerging economies in South Asia and North Africa, which are attempting to provide a large quantity of potable water to their populations.

What are your biggest opportunities and challenges at present?

Septech is confident that the products being introduced today are significantly more attractive than those which are available currently, for two specific reasons. Firstly, the shift towards packaged and mobile technologies has proved to be more suitable for both governments and contractors who have more temporary requirements whilst they are considering upgrading their brownfield sites or completing tenders for greenfield sites.

Septech’s offering in this vertical segment allows for either the capital investment into redeployable water and wastewater assets or a potential rental programme over a short period of time. Given the current state of the economy, the option to rent infrastructure assets is commercially more attractive.

How has the economic downturn impacted on Septech?

In most of the industry sectors that Septech has operated in, there have been significant signs of development projects coming offline or being slowed down for an indefinite period. In terms of government spending on critical infrastructure, which includes water and wastewater, there have been evident signs of larger investments being made.

The existing client base of Septech has remained intact in terms of clients that the group has been working for over the past five years. New market entrants have not been as exposed to the group.

Do you expect an upturn in business compared to last year? What is your view going forward?

Septech has made strong efforts to establish offices in neighboring GCC countries which are facing a number of water and wastewater scarcity issues. The UAE has been a strong base for the group over the past 14 years and will remain the headquarters for the foreseeable future. In light of the current economic climate, Septech believes that there are still a number of visible opportunities in the industry; however, a number of developments which may have formed a large pipeline of work no longer represent a viable commercial opportunity.

How does marine MEP fit into your broader portfolio?

The marine industry has flourished enormously over the past decade, and has provided a number of opportunities that Septech’s marine business has been able to turn into successful contract awards.

The business has now increased in terms of world-renowned product offerings, such as the Bellingham pontoon system, installation, MEP and commissioning, to also include the option of operating and maintaining marinas using in-house capabilities, based on the industry-recognised marina management systems developed by PacSoft.

You are also heavily involved in desalination?

The GCC represents about 29% of the global desalination market. With this large market share growing continually, the industry has a huge reliance on providing the latest developments/trends to ensure they can sell their products and services.

Septech and its team have strong alliances/relationships with leading global players, which allows us to access these products, both technical and commercial, before they are released to our clients, which has placed us at the forefront of innovation and fuelled our continual growth.