Saunders Strengthening Orderbook with Opportunities in Terminal Expansion Projects

  • May 26, 2020 AEST
  • Team Kalkine
Saunders Strengthening Orderbook with Opportunities in Terminal Expansion Projects


  • Saunders has garnered attention for securing a couple of contracts for terminal expansion projects in the past few months
  • Commenced ECI for a design and construction project for an NSW terminal expansion project in February
  • Approval secured for a design and construction contract as part of the Sydney B4A Terminal Expansion project, reinforcing SND position as a market leader of bulk liquid storage solutions
  • Revenue contribution via these contracts is expected from second half of FY20 through FY21.

In the recent years, travel picked up pace due to growing business needs, overseas education programs, tourism deemed to be more of a need than a want, to list a few reasons. Though the current restrictions around the COVID-19 pandemic has disrupted the industry, with many countries lifting lockdowns gradually, government stimulus packages injected for economic recovery and anti-viral vaccines under pre-clinical and clinical trials, normalcy is awaited in the coming months, translating into travel re-picking up the momentum.

Airport terminals are essential facilities that require substantial modernisation to provide services expected by contemporary travellers. Terminal expansions are critical to secure the future of airports, offering more capacity for passenger movement and operating flights while better streamlining conveyance.

Committed to safety, innovation, excellence and growth, multi-disciplined engineering and construction company, Saunders International Limited (ASX:SND) grabs opportunities in the design and construction of terminal projects, as one of its focus areas.

The ASX-listed Company caters to leading organisations across Australia and the Pacific Region, with services including design, construction, fabrication, and maintenance. SND targets the bulk liquid storage, industrial, energy, defence and resources sectors while providing intelligent engineering and construction solutions to the road and rail infrastructure sectors too.

To know more about sectors that SND caters to, READ HERE- Diverse Sectors That Benefit from Service Offerings of Saunders International

Recently, the Company garnered attention for securing a couple of contracts for terminal expansion projects.

ECI for NSW Terminal Expansion Project

In February 2020, SND notified to have started Early Contractor Involvement (ECI) for a 3-tank design and construction project for a terminal expansion project in NSW. The value of the project was reported to be over $20 million.

Under the ECI phase, the Company’s work valued at more than $2 million would be inclusive of steel and early civil works covering design, procurement, and fabrication. The ECI was set to begin towards the end of February 2020 and construction works were due to commence in 1Q20, to be continued through FY21, pending full project approval.

According to SND, if the project goes ahead, revenue contribution is expected from second half of FY20 through FY21.

3-Tank Design & Construction Contract under Sydney Terminal Expansion Project

Saunders, during late-April 2020, given approval for this 3-tank design and construction contract as part of the Sydney B4A Terminal Expansion project at Port Botany, valued at ~$20 million.

The contract award added to the Company’s recently announced project wins (two in defence, the NSW terminal expansion, with Rio Tinto and Sydney Water, to name a few) and further strengthened the orderbook to $108 million.

The Company’s scope of work for this project comprises of design, ground improvements, civil foundation, and the construction of three 35 megalitre diesel tanks with geodesic dome roofs. Mobilisation and sites works were to start right after the announcement with works expected to continue through FY21.

According to SND, the project will contribute revenue from second half of FY20 through FY21.



SND’s Varied Offerings

While discussing terminal expansion contracts, it should be noted that the Company has been offering its clientele with turnkey project engineering and delivery options for more than ten years and has progressively amplified its capacity to deliver multi-disciplinary and complex projects.

Curated for bulk liquid storage facilities, Saunders provides a full range of engineering services, including FEED (Front End Engineering Design) detail design, construction, and commissioning, while its 3D drafting capabilities range from terminal models and general layouts, to shop fabrication details and piping isometrics.

To know more about the Company’s services, READ HERE- Comprehensive Services of Multi-Disciplined Engineering and Construction Firm, Saunders International

COVID-19 Update

As the world battled the unprecedented event of COVID 19, SND also actively monitored the rapidly changing impact of the virus across its operations while ensuring that the safety of its team remains at the forefront of all decisions. A rigorous set of procedures and protocols have been rolled out to ensure safe operational continuity.

As updated on 26 May 2020, the Company had no confirmed cases of COVID 19. Even when it is too early to speculate on outcomes, a focus in these times has been on preservation of cash by turning off all non-essential capital expenditure and discretionary spending.

To know more about the COVID-19 related response by SND, READ HERE-Saunders International Strengthens Orderbook With Major Construction Contract Amid COVID 19

SND was trading at $0.460 with a market cap of $48.17 million on 26 May 2020 (AEST 02:30 PM). In the last 6-month period, the stock has generated returns of 64.29%.


The website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. The above article is sponsored but NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform.


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