Contractors hired to build Long Harbour camp

Moira Baird
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Temporary camp will house up to 1,000 construction workers

A Norwegian company that builds accommodations camps for the oil and gas industry landed a $52-million contract this month to build the construction camp for Vale Inco's nickel-processing plant in Long Harbour.

It's a sub-contract to ESS Support Services/Compass Group Canada, a food service company with worldwide operations and the lead contractor for the temporary construction camp project.

A Norwegian company that builds accommodations camps for the oil and gas industry landed a $52-million contract this month to build the construction camp for Vale Inco's nickel-processing plant in Long Harbour.

It's a sub-contract to ESS Support Services/Compass Group Canada, a food service company with worldwide operations and the lead contractor for the temporary construction camp project.

Stavanger-based Malthus AS will build the living quarters in Norway for ESS/Compass and ship the units to Long Harbour.

The first batch will arrive this summer and is expected to house about 250 workers by August. The rest of the camp will be completed and ready for workers by the first quarter of 2011.

"It will have the capacity to house and feed up to 1,000 people," said Bob Carter, spokesman for Vale Inco Newfoundland and Labrador.

"Once the installation is complete, then the prime contractor, ESS, will be operating the facility until the end of construction."

Once the nickel processing plant is built by February 2013, Carter said, the camp and its accommodations units will be removed from the site.

He said the camp will be similar to those used in oilsands projects in Alberta.

"It's going to be a first-class facility that is comparable to any of the construction camps that are found currently operating in sites in Western Canada, which is a pretty high standard."

Under its three-year contract, ESS/Compass will operate the camp.

Jobs

The company expects to hire up to 115 people to provide food, janitorial, housekeeping, maintenance and laundry services at the temporary camp.

"ESS will provide food and support services to the employees hired by Vale Inco to build the nickel-processing plant," said Cindy Harris, the company's senior communications adviser.

"Malthus is a sub-contractor."

Harris said Malthus will also hire 25 people to work at the site and buy and rent local equipment. The Norwegian company will start installing housing units at the Long Harbour site by June.

To date, Carter said, about 55 per cent of the roughly $500 million in contracts has gone to Newfoundland companies. He also said Vale Inco does not disclose the value of its commercial contracts.

Compass isn't saying how much the contract is worth, either.

Industry insiders peg its value - both building and operating the camp - at a little more than $100 million.

Malthus disclosed its $52-million share of that contract in a March 15 news release.

"The contract will have a high impact on Norwegian subcontractors and promote Norwegian export," the release read.

One of those sub-contractors is Moelven Group, which will build the living quarters modules.

"Moelven shall produce the modules that will be shipped to Canada from Norway," read the Malthus release. "As a consequence all workers that have been laid off at Moelven will get their jobs back."

Malthus Canada Ltd. opened its office in St. John's last spring and expects to branch out into Calgary to compete for upcoming oilsands contracts.

ESS has more than 500 employees in the province, providing food or housekeeping services to the St. John's Airport, K-12 schools, hospitals and the provincial government.

On its website, ESS says it serves four billion meals a year and employs 386,000 people around the world.

It's part of Compass Group Canada, whose subsidiaries include Chartwells, Morrison and Crothall.

Vale Inco has also awarded a contract for the Long Harbour project office to Kent Homes of the J.D. Irving Group.

It will supply and install temporary offices, lunch facilities, a security trailer and gates. The buildings will be constructed in New Brunswick.

mbaird@thetelegram.com

Organizations: ESS Support Services, Compass Group Canada, Moelven Group Malthus Canada St. John's Airport Chartwells J.D. Irving Group

Geographic location: Long Harbour, Norway, Western Canada Alberta Newfoundland St. John's Calgary New Brunswick

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Recent comments

  • wayne
    July 28, 2010 - 23:17

    for those of you who have commented, but are really uninformed, ceo of Compass/ ESS ect is another good ol boy from Newfoundland, and has chosen to work with local sub-contractors such as ND Dobbin, these guys have tuffed it out on the international stage and when they bring it home for us all you do is run off at the mouth....do your homework first, its rather embarrassing

  • John Doe
    July 02, 2010 - 13:32

    I.P.Clearly, you clearly are just another Liberal troll, this was a Liberal deal, a liberal boondoggle, and it will probably be up to Mr. Williams to clean it up....again. Thanks to ol' poppy eyes grimes, and his savy business sense, ha ha ha, man what a bunch of tools.

  • Bob
    July 02, 2010 - 13:31

    Were Canadian companies not invited to bid on this ?

    ATCO of Alberta comes to mind as just one such company ! There are others !

    Atco produces such modules as I have worked with them in the past and they are good. They also hire workers from Nfld-Lab !

    I understand we live in a global economy and support it but your newspaper article did not indicate that other bidders were involved .

  • Looks
    July 02, 2010 - 13:29

    No news here folks. Did anyone really expect that the work would be done in this province? Not like we have companies like ATCO Structures that perform this type of work all the time now do we. But I bet all those union drones can get a job sweeping the floors and takin out the trash for the contractors from Norway. I hear they like to treat labour like slaves. Get use to it.

  • Brad
    July 02, 2010 - 13:26

    ValeInco a foreign company providing another foreign company with work and money that should be staying right here. All they are giving us is an environmental disaster. There are Canadian companies that can do this type of work.

  • Bob
    July 02, 2010 - 13:26

    Last I checked there are NL companies bidding these PUBLICALLY TENDERED jobs as well. Should Vale-Inco just be handing over the work to NL companies at a higher cost?

  • DB
    July 02, 2010 - 13:24

    Well I see my little friend IC has come out of the wood work.I am not sure how you get out of my comment that I am against anyone on this, it was just a statement of fact.Here a little revalation for you the companies that were to do work on this project were to have a Newfoundland content to a certain percentage FACT thus the reason the company I work for opened an office in Newfoundland and hired people from here.

  • ET
    July 02, 2010 - 13:23

    http://www.vbnc.com/CommercialPlantConstruction.asp

    Maybe people should have a look at where things have gone.

  • Edmund
    July 02, 2010 - 13:22

    This is a GIANT step back to Have Not status. This was a better province to do business in when the Provincial Preference Policy was in effect. Why not bring it back and force outsiders to pony up an extra % on their bids to do work here to compensate for the lost jobs. God help us when oil goes below $75.00 a barrell. There is a BIG province wide problem of a huge unemployed component of our population outside of those working in the oil patch and it is getting worse. It would be interesting to know, under the freedom of information act, who the local bidders were, the numbers of local people they would have employed and the difference of the prices bid. If the difference is 10% or less, shame on the Government and Vale Inco for making such a decision. Looks like we are our own worse enemy again!! When we they ever learn??

  • Will
    July 02, 2010 - 13:22

    As a Company based in Newfoundland and owned by a Newfoundlander we filled our the EOI forms Did the Pre Qualification forms...multiple meetings and Presentations to ValeInco demonstrating our commitment to ValeInco to provide local content as per ValeInco rquest and guidelines.We rep some of the worlds largest manufacturing companies and they are worldwide.We work as a team to abide by local content,superior product,and competitive pricing by us and our suppliers.Having played by the rules will we see our interests be awarded to companies outside NL and Canada ?

  • I C Clearly
    July 02, 2010 - 13:22

    John Doe and DB moan about a contract being given to an 'outsider' and point the finger at a previous government. News flash - Macho Dan already stated that this was a good deal - I'm surprised that you're going against the judgement of your idol. If you think that there were unnecessary giveaways in this relatively small project, wait until you get a load of what was bargained away for the province's equity stake in Hebron. I'm looking forward to your comments when that hits the media.

  • Jack
    July 02, 2010 - 13:21

    Being one that thinks Danny walk es on water I am deeply disappointed with this much more off the infrastructure should have been made hear in the province no in fact all of it should have been!!

  • Telling it how Id
    July 02, 2010 - 13:19

    What the F are you morons getting on with???

    Where does it state that Danny Williams is the CEO or serves as an executive to Vale Inco?? Can someone find me that info please??

    Where does it state that Vale Inco is required to hire Newfoundlanders only for all the work they do in Newfoundland??? WHERE??

    Did you know the Terra Nova FPSO was built in South Korea, I guess that must really make you guys P'Oed.

    Vale Inco has a right to choose WHOEVER IT WANTS when it comes to SPENDING THEIR MONEY.

    Vale got what it believes the best service for the least cost.

    If you have a problem with that....TS.

    it's a free market, Vale Inco has a right to tender its work contracts to whereever and to whomever they feel like.

    Like I said yesterday, you map the typical Newfoundlander DNA it will either spell,

    COMPLAIN

    WHINE

    GIMME GIMME GIMME

    and now my personal favourite,

    BLAME DANNY

  • member of the 20%
    July 02, 2010 - 13:19

    Roger who? I thought Little Man Dan was king now? doesn't he rule all things? I thought he had the power to re-write all previous contracts if they didn't suit him?

  • greg
    July 02, 2010 - 13:16

    British Steel Companies.....Norwegian Labor Camps...and pick and shovel work for us...same as Joey.....

  • Francis
    July 02, 2010 - 13:14

    Danny can only do so much. Grims was thinking of his pension and not the future oF working Newfoundlanders.

  • Nasty
    July 02, 2010 - 13:13

    Why is this such a surprise? We all were very aware that Newfoundland was not competitive enough nor held the infrastructure to support this or any decent sized project. Just wait till the GBS contracts are farmed out next. Failing to invest in industry and only in royalties from the extraction of oil has cost everyone of us more then we could ever imagine. But hey, Danny knows best right. Spend that 2.4 billion dollar surplus put the province back in the red and still the people in this province can not land a decent job.

    The legend continues...

  • ,
    July 02, 2010 - 13:13

    Package Number CG-0052 Title Construction Camp & Catering

    Here are the qualified bidders for this development.

    Company Name

    ATCO Structures
    Bonavista Food Services Ltd.
    East Coast Catering Limited
    ESS Support Services (Compass Group Canada Ltd)
    PTI Group Inc.
    The First Canadian Group Limited, N.D. Dobbin Group of Companies

    Now who they subcontract out to is another issue.

  • gerard
    July 02, 2010 - 13:12

    I was under the understanding that MR. Williams plugged all the holes that Mr. Grimes left open in this deal. I guess he left a large one open, big enough to drive a house through...

  • John Doe
    July 02, 2010 - 13:12

    I guess when Roger Grimes, and the rest of the Liberal brain trust dreamt up this contract they should have put in a few sentences requireing work be done here. Once again we have work being done in Europe, and mainland Canada that could be done here. Great job liberals.

  • DB
    July 02, 2010 - 13:12

    You have seen the last of this headline there will be more work farmed out to outsiders then you will ever dream, so much for Newfoundland.

  • Tim
    July 02, 2010 - 13:11

    It's never nice to see work leave the province. I guess companies here need to be more competitive when bidding on these jobs. Contractors in this province have become absolutely greedy, an obvious example of this is home construction.

    I'm sure there are local companies here that bid on jobs out of province and overseas as well.

    This is how the globalized system works. Whether we like it or not.

    'Looks Good' should probably refrain from calling people drones for sweeping floors and taking out the trash. Sombody has to do it, maybe you should do it yourself some time and learn some humility.

  • Steve
    July 02, 2010 - 13:10

    The last time I checked Vale Inco was a publicly traded company who are accountable to their shareholders.

    This company is obviously going to tender out their business to the lowest qualified bidder. It would be foolhardy to think they are going to pay a local company more than another company from outside the province who may make a lower bid.

    Even if this were a government owned enterprise they would be still bound by the public tendering act.

    How all of this is Danny's fault or what ever punching bag people have lined up out there is beyond me.

    We are living in the year 2010, not 1950.

  • July 02, 2010 - 13:09

    Everyone thought Long Harbour was going to be great employment news for Newfoundlanders when it was first announced. I told you back then to expect the kind of things we are seeing today and I've been waiting to say this:


    I TOLD YOU SO


    Now, watch all the lead positions go to people brought in from outside the province. Also, don't expect your children or grandchildren to be employed there. Don't even expect that facility to run twenty years as promised. Certainly don't expect ValeInco not to leave us with a huge mess to clean up after they pull out in 10 years.


    I'll be back with another 'I told you so.' You should've just said 'no' to this filthy, backward third-world operation. You are going to see marine life destruction even in your bay, mark my words, and you'll have nothing to show for it.

  • John Doe
    July 02, 2010 - 13:08

    Ha ha ha ...look at the moronic Liberal trolls scrambling to put the blame on Mr. Williams. Mr. Williams was the one who warned that there were so many holes in this contract you could drive a Mack truck through it. Now that they are driving the truck through it the Liberals are blaming it all on the present gov. What a bunch. Just wait till they figure out that there will be no ore left when this smelter is up and running. Roger agreed that they would find ore in other parts of the world to replace the material from Voisey Bay. What a joke. A liberal boondoggle if I ever saw one.

  • John Doe
    July 01, 2010 - 20:21

    I.P.Clearly, you clearly are just another Liberal troll, this was a Liberal deal, a liberal boondoggle, and it will probably be up to Mr. Williams to clean it up....again. Thanks to ol' poppy eyes grimes, and his savy business sense, ha ha ha, man what a bunch of tools.

  • Bob
    July 01, 2010 - 20:19

    Were Canadian companies not invited to bid on this ?

    ATCO of Alberta comes to mind as just one such company ! There are others !

    Atco produces such modules as I have worked with them in the past and they are good. They also hire workers from Nfld-Lab !

    I understand we live in a global economy and support it but your newspaper article did not indicate that other bidders were involved .

  • Looks
    July 01, 2010 - 20:17

    No news here folks. Did anyone really expect that the work would be done in this province? Not like we have companies like ATCO Structures that perform this type of work all the time now do we. But I bet all those union drones can get a job sweeping the floors and takin out the trash for the contractors from Norway. I hear they like to treat labour like slaves. Get use to it.

  • Brad
    July 01, 2010 - 20:14

    ValeInco a foreign company providing another foreign company with work and money that should be staying right here. All they are giving us is an environmental disaster. There are Canadian companies that can do this type of work.

  • Bob
    July 01, 2010 - 20:12

    Last I checked there are NL companies bidding these PUBLICALLY TENDERED jobs as well. Should Vale-Inco just be handing over the work to NL companies at a higher cost?

  • DB
    July 01, 2010 - 20:09

    Well I see my little friend IC has come out of the wood work.I am not sure how you get out of my comment that I am against anyone on this, it was just a statement of fact.Here a little revalation for you the companies that were to do work on this project were to have a Newfoundland content to a certain percentage FACT thus the reason the company I work for opened an office in Newfoundland and hired people from here.

  • ET
    July 01, 2010 - 20:07

    http://www.vbnc.com/CommercialPlantConstruction.asp

    Maybe people should have a look at where things have gone.

  • Edmund
    July 01, 2010 - 20:07

    This is a GIANT step back to Have Not status. This was a better province to do business in when the Provincial Preference Policy was in effect. Why not bring it back and force outsiders to pony up an extra % on their bids to do work here to compensate for the lost jobs. God help us when oil goes below $75.00 a barrell. There is a BIG province wide problem of a huge unemployed component of our population outside of those working in the oil patch and it is getting worse. It would be interesting to know, under the freedom of information act, who the local bidders were, the numbers of local people they would have employed and the difference of the prices bid. If the difference is 10% or less, shame on the Government and Vale Inco for making such a decision. Looks like we are our own worse enemy again!! When we they ever learn??

  • Will
    July 01, 2010 - 20:06

    As a Company based in Newfoundland and owned by a Newfoundlander we filled our the EOI forms Did the Pre Qualification forms...multiple meetings and Presentations to ValeInco demonstrating our commitment to ValeInco to provide local content as per ValeInco rquest and guidelines.We rep some of the worlds largest manufacturing companies and they are worldwide.We work as a team to abide by local content,superior product,and competitive pricing by us and our suppliers.Having played by the rules will we see our interests be awarded to companies outside NL and Canada ?

  • I C Clearly
    July 01, 2010 - 20:06

    John Doe and DB moan about a contract being given to an 'outsider' and point the finger at a previous government. News flash - Macho Dan already stated that this was a good deal - I'm surprised that you're going against the judgement of your idol. If you think that there were unnecessary giveaways in this relatively small project, wait until you get a load of what was bargained away for the province's equity stake in Hebron. I'm looking forward to your comments when that hits the media.

  • Jack
    July 01, 2010 - 20:05

    Being one that thinks Danny walk es on water I am deeply disappointed with this much more off the infrastructure should have been made hear in the province no in fact all of it should have been!!

  • Telling it how Id
    July 01, 2010 - 20:02

    What the F are you morons getting on with???

    Where does it state that Danny Williams is the CEO or serves as an executive to Vale Inco?? Can someone find me that info please??

    Where does it state that Vale Inco is required to hire Newfoundlanders only for all the work they do in Newfoundland??? WHERE??

    Did you know the Terra Nova FPSO was built in South Korea, I guess that must really make you guys P'Oed.

    Vale Inco has a right to choose WHOEVER IT WANTS when it comes to SPENDING THEIR MONEY.

    Vale got what it believes the best service for the least cost.

    If you have a problem with that....TS.

    it's a free market, Vale Inco has a right to tender its work contracts to whereever and to whomever they feel like.

    Like I said yesterday, you map the typical Newfoundlander DNA it will either spell,

    COMPLAIN

    WHINE

    GIMME GIMME GIMME

    and now my personal favourite,

    BLAME DANNY

  • member of the 20%
    July 01, 2010 - 20:01

    Roger who? I thought Little Man Dan was king now? doesn't he rule all things? I thought he had the power to re-write all previous contracts if they didn't suit him?

  • greg
    July 01, 2010 - 19:56

    British Steel Companies.....Norwegian Labor Camps...and pick and shovel work for us...same as Joey.....

  • Francis
    July 01, 2010 - 19:53

    Danny can only do so much. Grims was thinking of his pension and not the future oF working Newfoundlanders.

  • Nasty
    July 01, 2010 - 19:51

    Why is this such a surprise? We all were very aware that Newfoundland was not competitive enough nor held the infrastructure to support this or any decent sized project. Just wait till the GBS contracts are farmed out next. Failing to invest in industry and only in royalties from the extraction of oil has cost everyone of us more then we could ever imagine. But hey, Danny knows best right. Spend that 2.4 billion dollar surplus put the province back in the red and still the people in this province can not land a decent job.

    The legend continues...

  • ,
    July 01, 2010 - 19:50

    Package Number CG-0052 Title Construction Camp & Catering

    Here are the qualified bidders for this development.

    Company Name

    ATCO Structures
    Bonavista Food Services Ltd.
    East Coast Catering Limited
    ESS Support Services (Compass Group Canada Ltd)
    PTI Group Inc.
    The First Canadian Group Limited, N.D. Dobbin Group of Companies

    Now who they subcontract out to is another issue.

  • gerard
    July 01, 2010 - 19:50

    I was under the understanding that MR. Williams plugged all the holes that Mr. Grimes left open in this deal. I guess he left a large one open, big enough to drive a house through...

  • John Doe
    July 01, 2010 - 19:50

    I guess when Roger Grimes, and the rest of the Liberal brain trust dreamt up this contract they should have put in a few sentences requireing work be done here. Once again we have work being done in Europe, and mainland Canada that could be done here. Great job liberals.

  • DB
    July 01, 2010 - 19:49

    You have seen the last of this headline there will be more work farmed out to outsiders then you will ever dream, so much for Newfoundland.

  • Tim
    July 01, 2010 - 19:47

    It's never nice to see work leave the province. I guess companies here need to be more competitive when bidding on these jobs. Contractors in this province have become absolutely greedy, an obvious example of this is home construction.

    I'm sure there are local companies here that bid on jobs out of province and overseas as well.

    This is how the globalized system works. Whether we like it or not.

    'Looks Good' should probably refrain from calling people drones for sweeping floors and taking out the trash. Sombody has to do it, maybe you should do it yourself some time and learn some humility.

  • Steve
    July 01, 2010 - 19:45

    The last time I checked Vale Inco was a publicly traded company who are accountable to their shareholders.

    This company is obviously going to tender out their business to the lowest qualified bidder. It would be foolhardy to think they are going to pay a local company more than another company from outside the province who may make a lower bid.

    Even if this were a government owned enterprise they would be still bound by the public tendering act.

    How all of this is Danny's fault or what ever punching bag people have lined up out there is beyond me.

    We are living in the year 2010, not 1950.

  • July 01, 2010 - 19:45

    Everyone thought Long Harbour was going to be great employment news for Newfoundlanders when it was first announced. I told you back then to expect the kind of things we are seeing today and I've been waiting to say this:


    I TOLD YOU SO


    Now, watch all the lead positions go to people brought in from outside the province. Also, don't expect your children or grandchildren to be employed there. Don't even expect that facility to run twenty years as promised. Certainly don't expect ValeInco not to leave us with a huge mess to clean up after they pull out in 10 years.


    I'll be back with another 'I told you so.' You should've just said 'no' to this filthy, backward third-world operation. You are going to see marine life destruction even in your bay, mark my words, and you'll have nothing to show for it.

  • John Doe
    July 01, 2010 - 19:43

    Ha ha ha ...look at the moronic Liberal trolls scrambling to put the blame on Mr. Williams. Mr. Williams was the one who warned that there were so many holes in this contract you could drive a Mack truck through it. Now that they are driving the truck through it the Liberals are blaming it all on the present gov. What a bunch. Just wait till they figure out that there will be no ore left when this smelter is up and running. Roger agreed that they would find ore in other parts of the world to replace the material from Voisey Bay. What a joke. A liberal boondoggle if I ever saw one.