IG 2009 a Study of Land Reclamation

MESYUARAT PEMBENTANGAN KERTAS PENYELIDIKAN JABATAN BIL. 3/2009 21– 23 DISEMBER 2009 DEWAN NUSANTARA, MENARA SRI SAUJANA INSPEN

KERTAS PENYELIDIKAN

A STUDY ON LAND RECLAMATION COSTS ZURAIDAR HUSIN

Content 1.0

Introduction

1.1

Background

1.2

Problem Statement

1.3

Objectives

1.4

Research Questions

1.5

Scope

1.6

Significance of The Study

2.0

Literature

2.1

Land Reclamation

2.2

Method of Land Reclamation

2.3

Reclamation Process

3.0

Methodology

Page 1

4

8

Part 1

INTRODUCTION 1.0

BACKGROUND

The blooming development in recent years in Malaysia has created the need of more land especially land nears to the developed areas. As most of the developed areas are located to the coastline, one of the options is to create more land is to reclaim coastal areas which also includes land below seawater level.

As we all know, coastal areas are mostly land that belong to the state government, hence the companies need to make an application to the state for land alienation.

In line of this, JPPH is being requested to

carry out valuation for this purpose.

1.2

PROBLEM STATEMENT

1.3

OBJECTIVES

The objectives of the study are as follows:

i)

ii)

To highlight offshore land reclamation methods, and

To show the costs of sea land reclamation in Penang and Malacca and its ratio to land value.

1.4

RESEARCH QUESTIONS

i)

The method of sea land reclamation usually involved in the development of housing, commercial and industrial and its process.

ii)

What is the material used in reclamation?

iii)

What

the costs?

focus on methods, process, materials and costs of filling the area to be reclaimed.

1.6

SIGNIFICANCE OF THE STUDY

It will serve as a practical guide for valuers in JPPH to do valuation of  coastal land when the need arises.

1.6

RESEARCH LIMITATIONS

The limitation of this research is solely depending on the availability of  data costs from JPPH George Town case files and the mild respond from the developers. They were reluctant to impart with the costs due to their companies’ regulations.

The companies which involve in reclamation project in Melaka also didn’t give good coorporation to provide the accurate cost of their projects. Most data provided by UPEN (State Economic Plan Unit) and

Part 2

LITERATURES

2.1

LAND RECLAMATION

What are land reclamations?

The term “land reclamation” is used to described two different activities. In the first sense, land reclamation involved modifying wet land or waterways to convert them to useable land, usually for the purpose of development. Land reclamation can also be a process

n

which damaged land is restored to its natural state. In both cases, the term is used to refer to some sort of process which is designed to fundamentally alter the characteristics of a piece of land to achieve a desired end goal (www.wisegeek.com/what is land reclamation.htm, accessed 2/6/2009)

eclamation activities are carried out in the country for the purposes of development, i.e industrial, housing, recreational and expansion area to the wharfs. There are various techniques in sea reclamation area which has been accepted according to the condition of the area, size and cots involved (Zaliha Yahya, 1987)

2.2

METHODS OF LAND RECLAMATION

There are two major types of reclamation and each has advantages and disadvantages (resources.metapress.com, accessed 8/4/2009). The methods are:-

1.

In the “drained” reclamation, fill is placed on the reclamation site. The advantage is that existing soft marine material can be left

in

place,

reducing

the

amount

of

fill

required.

The

disadvantages is the longer time require for settlement and a greater uncertainty in the duration and rate of consolidation.

2.3

RECLAMATION PROCESS

The process of reclamation depends on the method adopted (IJM Information Booklet 2008). The basic process are:-

Step 1 – temporary bunds were built along the reclamation boundaries as shore protection structure.

Step 2 – Upon tugging to site, the sand was unloaded by excavator and transported out by dump trucks via temporary jetty. -

Bulldozers then spread and compacted the reclaim land to the desired levels.

Step 3 – A layer of sand of approximately 1.2 meter thick was laid as drainage path prior to PVD installation and surcharge on top. -

This sand layer helps to avoid water pollution.

The process mentioned above, is almost the same except for the step number two, where dredged reclamation method marine sand was extracted from the sea bed of approved source and loaded onto barges. Whereas the other method, material used are totally from mainland e.g river sand, laterite or rock loaded onto reclamation site.

Part 3 METHODOLOGY

This chapter will explain the methodology and approach adopted to achieve the research objectives.

3.1

METHODOLOGY

The methodologies are:1.

Collection data by interviewing to the related agencies or companies doing reclamation work.

2.

Literatures data will be collect by reading the printed journals, books, seminar papers, internet access and others.

3.

3.2

The result will be shown in the form of table and figure.

RESEARCH APPROACH

First Question – what is the method used to reclaim the coastal area for development purpose? Interview with the consultant, contractor or developer and doing some search on past paper regarding the method of offshore reclamation.

Second Question – what is the process in land reclamation work? Interview with the consultant, contractor or developer and doing some search on past paper regarding the process of offshore reclamation.

Third Question – what are the material used in reclamation work? Interview with the consultant, contractor or developer and analyse the  ‘built of quantity’ of offshore reclamation works.

Fourth Question – what are the costs of land reclamation? Interview with the consultant, contractor or developer and analyse the  ‘built of quantity’ of offshore reclamation works.

Fifth Question – Is there a difference in costs according to location?

Part 4

THE PROJECTS

This

chapter

will

discuss

the

selected

offshore

reclamation

project

development to achieve main objective this study. The selected projects development are in Melaka dan Pulau Pinang.

4.1

Pulau Pinang The data used are both historical and current data of land reclamation projects in Penang.

i)

Data on project under construction identified for this study, namely, IJM projects -The Light - will be collected from the developer. Unstructured interviewed is carried out to obtain costs and steps in land reclamation.

4.1.1 The Light- developer: IJM. Located: Jelutung Expressway Area: 32.0 acre Depth: 5 meter Project started: Jan 2009 Method used: Dredged method Status: Completed Costs: RM42,276,384.00 Major construction material No.

Material

Rate (RM)

1. 2. 3.

Sand Earth Perforated Vertical Drain (PVD) Sand Bag 200 mm concrete mattress 450mm thick rubble pitching wall Geotextile

34.00 18.00 1.60

Volume/Quantity Used 765,197 m3 198,316 m3 1,516,000 m3

62.00 175.00

106,694 m3 17,883 m2

160.00

2,849 m2

8.50

7,530 m2

4. 5. 6.

4.1.3 Projek Bandar Tanjung Pinang, Tanjung Tokong. Site: Bandar Tanjung Pinang, Tanjung Tokong Area: 240.63 acre (973,796 meter persegi) Depth: 7 meter Project started: 2003 Method used: Status: Completed Costs: RM328,000,000.00 Reclamation cost comprising scope of work : a) Reclamation works b) Temporary rock bunds c) Coastal protection in the form of rock revetment and 60m set back from waterline d) Soil improvement i.e. surcharge vertical drains e) Soil investigation f) Independent Consultant’s supervision g) Infrastructure for fishermen i.e. breakwater

4.1.4 Marina Project, Bandar Tanjung Bungah

4.2

Melaka In Melaka, extension development area by using reclamation offshore started in year 1993. The previous reclamation project done in Melaka are:-

Type

Area

Location

Commercial

31.9693

Taman Melaka Raya, now these

hectare

scheme

offering

most

valuable

properties in Melaka. Reclamation started in 1993 and completed in 1997. Mix

21.35

Taman Kota Laksamana.

development

hectare

Reclamation started in 1993 and completed in 1997.

Mix

9.3185

Pulau

Berkembar

development

hectar

Reclamation started on 1993 and abandoned.

Total

Pulau

Melaka.

proposed

to

That approval include other offshore area to be develop are along coastal Jalan Ujong Pasir to Pulau Melaka, Town of  Melaka.

After submission before approval from the State Government, applicant or developer should pay to the State Government. The cost are:-

a)

Earnest money

:

RM100,000 per application

b)

Contribution to the state : RM5,000 per acre

c)

Fisherman Fund

:

RM0.10 per square feet

d)

Deposit to MBMB

:

RM300,000 per application

Please refer to Appendix A: location of land reclamation projects.

Analysis: Penang: No. Projects

Area (ekar)

Year

Reclamation Costs/pm3

1. 2. 3.

32 12 240.63

2009 2007 2005

RM62.83 RM120.17 RM38.00

15

2001

RM21.85

4.

The Light- IJM Marina Project Bandar Tanjung Pinang Bayan Bay Marina

Melaka Project No. 1 2 3 4 5 6 7 8

Projects IGN Group Berhad ABS Maju Haruman Utama Ultra Green Sdn Bhd (A) Strategic Oscar Sdn. Bhd Pembinaan Kota Laksamana Sdn. Bhd. Ultra Green Sdn Bhd (B) Olympia Land

Area Reclamation (acre) Costs/pm3 50 RM92.66 38.6 RM57.62 180 RM68.64 997 RM59.48 180 RM71.39 220 RM76.38 89 RM66.64 106.855 RM123.33

Part 5 RESULTS AND RECOMMENDATIONS

We have to distinguish the fact that size of land reclamation under study is different hence the results corroborate the fact. The costs of land reclamation in this study are found to be RM35.00 pm3 to RM120.00 pm3 depending on land size. Further research is recommended to be done to look into the big differences in land reclamation costs.

In the earlier stage of the study, we hope to find and discuss the relationship of reclamation costs to land value but due to time constraints and heavy workload at branches offices, we are not able to do it now. This study will be continued later to include the comparison of land value between non reclaimed land and reclaimed land.

References: i.

Case files in JPPH George Town

ii.

(www.wisegeek.com/what is land reclamation.htm, accessed 2/6/2009)

iii.

HRC Consultancy Sdn. Bhd., Town Planner consultant of  reclamation project in Melaka.

iv.

Juruukur Perunding Sdn. Bhd., Land Surveyor Consultant of  reclamation project in Melaka.

v.

UPEN Melaka, State Economic Plan Unit.

vi.

Developer of ‘The Light’ – IJM.

Appendix B 1. No.

1. 2. 3.

4. 5. 6.

7.

IJM Material

Current Market Price (RM) (a) 34.00 18.00 1.60

Sand Earth Perforated Vertical Drain (PVD) Sand Bag 62.00 200 mm concrete 175.00 mattress 450mm thick 160.00 rubble pitching wall Geotextile 8.50 Jumlah

Analysis m3:

Volume/Quantity Used

Total costs (RM)

(b) 765,197 m3 198,316 m3 1,516,000 m3

(c)= (a)x(b) 26,016,698 3,569,688 2,425,600

106,694 m3 17,883 m2

6,615,028 3,129,525

2,849 m2

455,840

7,530 m2

64,005 42,276,384

RM42,276,384 Land area x depth RM42,276,384 647,511 meter3

2.

Project Bayan Bay Marina Resort

Site: Bayan Bay Marina Resort Area: 15.02 acre (60,783.88 meter persegi) Depth: 3. 66 meter Project started: Method used: Status: Completed

Reclamation cost : a) Reclamation (Earth Filling) b) Shore Protection (Rock Reventment)

RM4,604,440.00 RM1,060,000.00 RM5,664,440.00

PV for 2 year @ 8%

0.85734 RM4,856,350.99

Analysis :

RM4,856,350.99 Land size x depth 4,856,350.99 60,783.88 m2 x 3.657 meter RM4,856,350.99

3. Projek Bandar Tanjung Pinang, Tanjung Tokong. Site: Bandar Tanjung Pinang, Tanjung Tokong Area: 240.63 acre (973,796 meter persegi) Depth: 7 meter Project started: 2005 Method used: Status: Completed

Reclamation cost comprising scope of work : a) Reclamation works b) Temporary rock bunds c) Coastal protection in the form of rock revetment and 60m set back from waterline d) Soil improvement i.e. surcharge vertical drains e) Soil investigation f) Independent Consultant’s supervision g) Infrastructure for fishermen i.e. breakwater RM328,000,000.00 PV for 3 year @ 8%

0.79383 RM260,376,240.00

Analysis :

RM260,376,240.00 Land size x depth

4. Marina Project, Bandar Tanjung Bungah Site: Section A Located: Tanjung Bungah Area: 47,314 sq. meter Depth: 4 meter Project started: 2007 Status: Completed Costs:

PV utk 2 tahun @ 8%

Analysis :

RM26,527,742.00

0.8573  ________________ RM22,742,233.00

RM22,742,233.00 Land size x depth RM22,742,233.00 47,314 sq. meter x 4 meter RM22,742,240.00

APPENDIX B1

RECLAMATION PROJECT IN MELAKA No. 1 2 3 4 5 6 7 8 9 10 11

1 2 3 4

Componies IGN Group Berhad ABS Maju Haruman Utama Ultra Green Sdn Bhd (A) Strategic Oscar Sdn. Bhd Pembinaan Kota Laksamana Sdn. Bhd. Ultra Green Sdn Bhd (B) Olympia Land KL Metro Ultra Green Sdn Bhd (C) Mahajaya Sdn Bhd TOTAL RECLAMATION PROJECT IN PENANG IJM Bayan Bay Marina Resort Bandar Tanjung Pinang Marina Project, Tanjong Bungah TOTAL

Acerage

M.S

Depth

50.000 38.600 180.000 997.000 180.000 220.000 89.000 106.855 100.000 523.000 709.000 3,193.455

202,343.13 156,208.90 728,435.28 4,034,722.08 728,435.28 890,309.79 360,170.78 432,427.51 404,686.27 2,116,509.18 2,869,225.63 12,923,473.83

4.00 5.00 5.00 5.00 5.00 5.00 5.00 3.00 5.00 4.00 5.00 4.64

32.00 15.02 240.63 12.00 299.65

129,499.61 60,783.88 973,796.56 48,562.35 1,212,642.40

5 3.66 7 4 4.915

Analyze Cost Reclaim Per Acre P.S.F P.S.M P.M3 (estimation) RM75,000,000 RM1,500,000 RM34.44 RM3.20 RM92.66 RM45,000,000 RM1,165,803 RM26.76 RM2.49 RM57.62 RM250,000,000 RM1,388,889 RM31.88 RM2.96 RM68.64 RM1,200,000,000 RM1,203,611 RM27.63 RM2.57 RM59.48 RM260,000,000 RM1,444,444 RM33.16 RM3.08 RM71.39 RM340,000,000 RM1,545,455 RM35.48 RM3.30 RM76.38 RM120,000,000 RM1,348,315 RM30.95 RM2.88 RM66.64 RM122,000,000 RM1,141,734 RM26.21 RM2.44 RM94.04 RM130,000,000 RM1,300,000 RM29.84 RM2.77 RM64.25 RM730,000,000 RM1,395,793 RM32.04 RM2.98 RM86.23 RM930,000,000 RM1,311,707 RM30.11 RM2.80 RM64.83 RM4,202,000,000 RM1,315,816 RM30.21 RM2.81 RM70.13

RM42,276,384 RM5,664,440 RM328,000,000 RM26,527,742 RM402,468,566

RM1,321,137 RM377,126 RM1,363,089 RM2,210,645 RM1,343,129

RM30.33 RM8.66 RM31.29 RM50.75 RM30.83

RM2.82 RM65.29 RM0.80 RM25.46 RM2.91 RM48.12 RM4.71 RM136.57 RM2.86 RM67.53