Episode 84: Maritime Transport Operation
However, Joo Il-hwan was also a born businessman.
As if nothing had happened, Joo Il-hwan quickly changed his facial expression and slyly asked.
“Where did you hear that story?”
Lee Changjin shrugged his shoulders and replied in an inquisitive tone.
“Just thinking about it logically. A company like Brown & Root isn’t the contractor for the Jubail construction project, so they only need to make money. They wouldn’t care whether the construction goes well or not, right?”
“Do you think Brown & Root is the only local contractor? There’s Santa Fe, McDermott, and if it doesn’t work out, we can collaborate with someone like Sumitomo to proceed with the local construction. Your argument is overly speculative.”
“Do you think such companies would easily cooperate with potential future competitors like Mirae? They wouldn’t be the type to inflate construction costs or easily transfer technology. Yankee scoundrels changing their words isn’t something new. Wouldn’t it save time and costs to manufacture the modules domestically and then transport them?”
However, Joo Il-hwan did not show his true intentions immediately.
He asked again, as if testing.
“Your idea has a major flaw. What if you encounter a storm during maritime transport? What if a typhoon sinks the barge? Isn’t that too reckless?”
“Why are you thinking about failure before even starting? If it succeeds, we can save hundreds of millions of dollars. Simply put, we can design and manufacture it to float. As long as the jacket floats, we can retrieve it somehow.”
“It sounds plausible, but do you think it’s physically possible?”
“Haha, what’s impossible? It takes 35 days to ship materials from Korea to Saudi Arabia, and I heard it takes a month to manufacture the jacket separately there. But if we manufacture the modules and assemble them on the barge, we can save both time and cost.”
“Then, how would you install the massive modules transported by the barge?”
“The best way is to make a terminal by creating a framework with large-diameter steel pipes, transporting it by sea, and fixing it deep into the bedrock with anchor piles. We can’t stick to conventional methods if we want to shorten the construction period. We have to take risks if necessary.”
At those words, Joo Il-hwan smiled automatically.
Was there anyone else who could talk back so clearly in front of him?
Chairman Joo raised the corners of his mouth and laughed heartily.
“Hahaha! There’s another madman here as crazy as I am.”
After laughing for a while, Chairman Joo spoke seriously.
“Alright, let’s do it. If you can shorten the construction period, I’ll provide the jackets. But this is a national project. If you fail, both you and I are finished. Are you still confident?”
Joo Il-hwan’s eyes were very serious. He wasn’t just joking.
The Jubail project was a gamble with the nation’s destiny at stake in a foreign currency-deprived Korea.
Failure of the project wouldn’t just end with simple economic compensation.
However, Lee Changjin nodded calmly, as if it were someone else’s business.
“If I thought it would fail, I wouldn’t have brought it up in the first place. I’ll stake my neck on it too.”
“Alright. Then, the deadline is set at 8 months. For every week you shorten, I’ll give you one jacket. Conversely, if you’re delayed by even a day, you’ll have to pay the delay penalty. Will you accept?”
“Yes, let’s do it that way.”
Having signed the contract on the spot, Lee Changjin shared the agreement.
The total amount was 37 million dollars, and it was to be carried out in a turnkey manner, covering design, manufacturing, and commissioning.
Employees were astonished to hear that Lee Changjin had received an additional crane order from Mirae Construction.
Manager Koo Chang-dong, confirming the amount, asked in disbelief.
“Wow, 37 million dollars… How much is that in cash?”
“At 484 won per dollar, it’s roughly 17.9 billion won.”
“17.9 billion won? Is that really true?”
“Why are you so surprised? Including the jackets, it might exceed 20 billion won. If we shorten the construction period, we could receive items worth 500 million won each week.”
The amount was staggering for a single order.
However, Consultant Hong In-young couldn’t hide his concern upon hearing the news.
“President, our capability is only up to 800 tons. Moreover, not all road construction is completed, so we can’t be certain.”
“Can’t we look into the manpower office and skilled workers’ association? Manager Koo, please personally secure as many skilled workers as possible. We need at least 200 people.”
“Understood.”
“And Director Lee Chang-sik, please handle the procurement of raw materials and necessary equipment. Contact President Kim Chul-ho and prepare the raw materials as a preliminary stock. We need a larger workspace for manufacturing. Director Seo, please coordinate with the Ulsan shipyard to secure a workspace capable of manufacturing 2,000 tons. Time is tight, so let’s proceed with mixed and concurrent work.”
“Concurrent work? That will make the workflow very complicated.”
Consultant Hong’s question was met with a worried look from Director Seo as well.
“That’s right, President Lee. Considering safety conditions, I wouldn’t recommend it. Heavy material transport might not be an issue, but if there’s a collision during the turnover work due to entangled workflows, it would be a loss.”
“We must pay attention to safety. Director Seo, aren’t you an expert in safety management? We’ll properly compensate for the overtime of skilled workers. Please bear with us.”
“Geez, you’re making unreasonable demands. Alright, I’ll do what I can. Can you tell me roughly how you plan to make it?”
“There’s not much difference between 800-ton and 1,600-ton. First, we pair the bridges, then connect the crane body and boom. By adding braking and deceleration devices, we can adjust the lifting capacity to around 2,400 tons, and increase the thickness and number of strands in the trolley wire.”
Consultant Hong, listening to the explanation, replied cautiously.
“Hmm. It doesn’t seem easy. To do that, we need to significantly change the initial design. If the structural calculations are wrong, it could become an empty shell even after making it.”
“That’s why we must do it right from the start. Ah, Manager Yoon Jung-pil? Before the structural design, it’s crucial to calculate the hydrostatic pressure acting on the barge and offshore crane due to wave forces. Please handle the engineering part.”
“Understood, President. Don’t worry.”
Although Lee Changjin had confidently secured the contract, there were numerous challenges to overcome in actual manufacturing.
The most urgent task was the structural calculation to match the 1,600-ton weight.
Lee Changjin first acquired the basic design drawings for a stationary crane from Japan through Mannheim and then assigned the structural design to Professor Chae Sung-tae, an expert in steel structures at Korea University, through Professor Eom Ki-dong, who had collaborated on the vacuum dryer part.
As the design drawings were roughly completed, Lee Changjin immediately began manufacturing the parts.
“First, install the traveling rails and prepare the crane installation manual. We must follow the manual precisely. If the installation order of each module part is wrong, the assembly won’t be done properly, and it will be difficult to shorten the construction period. If we make a mistake, it could lead to a major accident, so please pay attention to supervision.”
In the dock responsible for crane manufacturing, a two-tier traveling rail of different heights was installed. The crane manufacturing was carried out in a way similar to assembling Lego.
First, the leg parts corresponding to the crane’s legs and the girder parts acting as beams were manufactured. Then the manufactured crane parts were assembled into a whole.
Nearly 200 people were mobilized to complete the process, working day and night. The work, carried out overnight, took six months.
Six months later, on the day of the final load test of the largest domestic 3,000-ton offshore crane.
The 82-meter-high, 35-meter-wide offshore crane successfully lifted a 2,000-ton weight in the presence of Mirae Construction officials.
Once the crane was completed, Joo Il-hwan presented his previously confidential ocean transport operation plan to the executives. The technical team suggested loading five jackets on the barge, leaving the shipyard executives in awe.
“You’re saying you’ll manufacture all the steel structures in Ulsan and transport them by sea?”
“Yes. To shorten the construction period and save costs, the only way is to transport the materials quickly. I believe this method is the best.”
The most vehement opposition came from Vice President Hwang Jin-kyo, who was in charge of barge construction.
“This is nonsense. The sea route from Ulsan to Jubail is a whopping 12,000 km. It’s equivalent to making 15 round trips on the Gyeongbu Expressway. Along the way, there’s the Malacca Strait, known for the world’s largest typhoon zone. How can you guarantee no accidents in 19 round trips? This is reckless.”
“That’s right. If the ship capsizes even once, it could lead to a worst-case scenario where we have to halt construction for a year.”
No one thought it was a good idea.
However, Joo Il-hwan, who had made up his mind, did not back down.
“We don’t have time to hesitate. Time is money. Just do as I say!”
“Chairman, the engineers’ analysis says it’s impossible. Please reconsider.”
“Why do you only think it’s impossible? Have you tried it? Try it and then talk. I’ll take responsibility for everything, so just line up!”
“Then how about taking out insurance? In case of an accident…”
The staff, finding it difficult to persuade the chairman, suggested taking out insurance.
Hearing this, Joo Il-hwan snorted.
“In case of an accident? The insurance company would give us 2.5 billion won. But then what? If it takes over a year to remake and transport, we’d lose a 450 billion won project. The company would go bankrupt, and we’d get only 2.5 billion won? Daese, a small company, made that huge crane in just six months. Why can’t we?”
Despite the numerous objections from the staff, Joo Il-hwan pushed forward.
Instead of insurance, Chairman Joo adjusted the transport dates using maritime weather information and developed and installed a computer program to reduce risks.
With everyone’s attention focused, the first barge carrying jackets began its maiden voyage.
The ship departing from Ulsan sent a radio message to inform the Jubail site of its departure.
The on-site technical team held their breath in front of the radio.
Their faces were full of tension.
If they failed here, it was really over.
Manager Koo asked worriedly.
“Do you think this will really succeed?”
“Let’s not worry unnecessarily. It will work out somehow. Mirae is also staking everything on this, so they’ll do their best.”
Daese Industries was also not unrelated to this project. Half of the costs incurred in the Jubail project were to be received through promissory notes due after the project was completed.
If Mirae Group failed the project, the promissory notes would become worthless scraps of paper.
But unlike the worried employees, Lee Changjin was not nervous.
He was confident the transport operation would not fail.
Thirty-five days later, news came directly from Jubail.
“The first voyage was completed successfully!”
“Great!”
After that, a barge departed once a month, and there were no accidents up to the 7th voyage.
Later, although a pipe in one of the jackets was bent due to a collision with a Taiwanese ship, and one barge was lost in a typhoon, it was safely recovered after being washed ashore.
Considering it was nineteen adventures, these were very minor incidents.
In the future, this allowed Mirae Construction to shorten the construction period by 10 months from the original contract period of 36 months.
Mirae Construction’s performance astonished the contractors and advanced construction companies.
As a result, ARAMCO, the client, acknowledged the construction capabilities of Korean companies, and Korea’s credibility in the international bidding market increased.
It was a new milestone achieved by Joo Il-hwan’s decisiveness and brilliance.
Of course, everyone knew that Lee Changjin’s contribution was behind it.
This was the time when Daese Construction’s name began to appear prominently in history.
- To be continued in Episode 85 -
