How Berlin’s Futuristic Airport Became a $6B Embarrassment
bloomberg.com
bloomberg.com
Unfortunately I'm unable to find an English-language article on that at all. There is only this Imtech response: http://imtech.com/EN/corporate/Newsroom/Highlights/Imtech-re...
At the moment three public prosecutors independently investigate that companies practices which is rare in Germany: 1) A gigantic adventure park in Poland which was never supposed to be built 2) A cartel which allowed them to build two power plants 3) Falsification of balance sheets.
Imtech is responsible for parts of the airport's construction – including the two parts which created most problems: the smoke extractor and the cabling. As the airport was close to be finished, opening date just days away, Imtech send fraudulent invoices they knew nobody would double-check. This is a practice that seems really common with such projects.
Similar things happened a few years earlier: When the planning agency went bankrupt and it was known that due to regulatory changes the plans needed to be fixed they nonetheless went on to built the (now obsolete) parts – knowing they will be the company that will be called to fix it again. Additionally the work was done sloppily: Among the quoted examples were control boxes build too close together that you couldn't open their doors.
What was really important for the company was that all invoices should be paid by the end of 2012 to include them in that years balance sheet – while delaying paying their workers until January. As time was running out they resorted to a bribe: In December 2012 an employee of Imtech gave an employee of the Berlin airport an envelope with 150 000 € at the side of the highway. Airport employees spend overtime during the christmas holidays so that all payments of 65 Mio. € could be processed.
The article then goes on the describe the involvement of top management which indicate that this is done systematically. They also describe the two other projects from above. They also suggest that these projects look like a Ponzi scheme: A project's loss is paid by doing even crazier projects.
Yeah, this is a bit too typical and happens in the USA also. If you ever have to deal with building something, check every invoice as if it was from Snidely Whiplash.
This seems to me to be the most interesting finding: the company was not doing all this illegal shit in a diabolical scheme to make the owners or management super rich (though they probably got some fat unwarranted bonuses over the years), but in desperate attempts to stave off bankruptcy.
A bit like Nick Leeson's Barings Bank shenanigans, just with less leverage, so it took a whole company to do half the damage a single person could do in finance...
Yes, they got a little fat off of it..
Some of that is figures of speech, some of it is colloquialisms, some of it is just weird grammar. For example, Japanese tends to omit the subject, which is incredibly confusing when directly translated if you aren't expecting it.
The translation of the above article is pretty good because a number of people have looked at it and made corrections, but the average German Newspaper article translation is nearly incomprehensible.
AFAIK Google translate is trained by using corpora of documents that have known-good translations. I could imagine that they are trained using EU documents, as these would usually be available in multiple languages. That would explain why performance on stuff published by the EU is so good...
Google Translate grew up on EU parliamentary publications.
I have been in Berlin. vs I have in Berlin been. Its not the exact translation and maybe theres a beter example but its the idea.
Ich bin in berlin gewessen.
There is also all the declinations. But yeah its noy japanese.
> I have been in Berlin. vs I have in Berlin been.
Here's another example: "I took out the trash" vs "I took the trash out".
In Japanese, you'd say "Berlin ni ita", or translating rather literally, "Berlin in was". You'd omit the "I", which can lead to some interesting misunderstandings.
Needless to say, Google translate borders on useless here.
Easily the best part of the article.
"Then they turned to the fire prevention system. Smoke now channels upward through chimneys, in accordance with the laws of physics."
While the "in accordance with the laws of physics" may be overly catty, a bit of searching around suggests that smoke evacuation dampers are generally placed on the ceiling, and it's not unreasonable to think that's because, well, smoke rises, isn't it?
The original design was never tested, because the building as originally designed never existed.
Each addition ordered up by Schwarz required shifting passenger flows through the terminal. That meant rebuilding walls, exits, emergency lights, ventilation systems, windows, elevators, and staircases. At one point, in 2009, outside controllers urged Schwarz and his engineering chief to shut down construction for half a year to give the architects and contractors time to coordinate efforts.
That never happened, so there never was a complete design for the changed building, and the fire system wasn't properly replanned for the new situation. Which lead to issues like the collapsing pipes: They fitted stronger fans, but no-one realized that the pipes can't hold the higher pressure difference.
Funny thing is, if they had allowed that there would never be an opportunity to fix it correctly. It would require shutting down the airport for quite some time.
The parallels with software and other areas of engineering are a bit disturbing.
-an airport
-an aquapark
-a huge sport stadion
All of them as a way to transfer some state/town money to political cronies. The sad part is that some of those make sense as an infrastructure improvement (most doesn't though, at least here) so it's easier to sell the idea to people. The way the business is done is to just pay 30%-50% more than it should cost and pocket the difference.
A rather lavish expenditure for a country that is deep in debt.
It would be funny if it wasn't sad. No wonder people avoid paying taxes when they see the money being wasted all around and citizens not ever asked about new crazy idea to build with it. We already have an expensive aquapark, huge stadium and two airports though. I wonder what's next for a town with a population of 600k in one of the poorest EU countries.
Sporting events like the F1 Grand Prix, FIFA world cups and Olympics etc seems to be full of loss making money stories for the hosts, but its organisation company seems to do quite well out of it.
This is just a casual observation, and I could be totally wrong.
The town has a population about 1700, the stadium on the map has capacity for 4500.
On the plus side, it seems like they've finally found someone competent to fix the mess and move the project forward.
Meanwhile all the other issues like heavy equipment breaking tiles... none of that seems to be slowing it from opening.
So how did all the other systems wind up being more or less ready?
"Niemand hat die Absicht, einen Flughafen zu errichten!"
('Nobody has the intention to build an airport!')
Context: https://en.wikipedia.org/wiki/Berlin_Wall#Construction_begin...
"Did you hear about the new grammar reform? It includes a new tense, Futur III, to allow us to speak of the completion of Berlin/Brandenburg airport."
http://www.der-postillon.com/2012/08/neue-zeitform-futur-iii...
It is possible that these sites exist as new financial "loopholes", transferring tax-money from the government to private contractors without much oversight.
Yes, absolutely
http://www.zeit.de/2015/29/imtech-flughafen-berlin-ber-verzo... (article in German)
But more generally, these kinds of megaprojects go over budget in nearly every part of the world -- especially when tunneling is involved. Here in the United States, two examples are Boston's "Big Dig" and Seattle's viaduct replacement.
It's extremely likely to go over budget, but don't count the chickens before they've hatched. The last budget review came to the conclusion that it's still possible to finish the project as budgeted and scheduled.
http://www.king5.com/story/news/local/seattle/2015/04/23/ber...
They should open a betting market on these types of lines. I'd love to see the fair odds. I'd take out a second mortgage if I could bet "This project will go over budget" if it was even odds.
"The tunnel project will not achieve STP’s original completion date of December 2015."
https://en.wikipedia.org/wiki/Niagara_Tunnel_Project
But now they get to drain the great lakes faster for profit.
https://de.wikipedia.org/wiki/Neue_Eisenbahn-Alpentransversa... (German)
Today, Mirabel is mostly a cargo airport. And the terminal is being demolished...
Meanwhile, Dorval was expanded several times. Also, it was renamed the Trudeau airport.
See https://en.wikipedia.org/wiki/Montr%C3%A9al%E2%80%93Mirabel_...
A year ago or so, it turned out that the folks responsible for all the mess (none of the board of course) we not to be found, because they were supporting a system were a subcontractor could hire another subcontractor and so forth, making it impossible for anyone to get a grip on what is going on. And that is not what I would expect from a billion dollar project run by some of the most trusted politicians and executives in our country.
I flew home from Budapest a couple of weeks ago, and I was surprised to see that we were using the actual airstrip of BER. The flight was supposed to go to SXF (Berlin Schönefeld), but instead we landed on the new airstrip, driving by the not-yet-finished new airport. Can anyone tell me why?
There's more to it though - starting with corruption [1] and going all the way to REBULDING the whole thing [2].
I'll stop here now - but I hope that there will be a lot more of critique towards those who made this a completely embarassing desaster.
[sorry guys, links are in german. I'll try to find english ones] [1] http://www.tagesspiegel.de/berlin/berlin-schoenefeld-korrupt... [2] http://www.faz.net/aktuell/wirtschaft/acht-milliarden-euro-b...
They repurposed the south airstrip of SXF as the north airstrip of BER. As the north airstrip of SXF was dismantled for a highway this is the only remaining airstrip at SXF. For BER they built another additional one.
Here's a map: https://upload.wikimedia.org/wikipedia/commons/f/f8/Karte-_F...
What if you can only hand out $1M? Will someone still want to bribe you? -Of course, but he'll be a "smaller player" then.
All public spending involves some sort of "corruption" [1] because it's always other people's money being spent, and there's always someone in charge of spending it.
If you could pay $10 to get $100, wouldn't you do it? A bribe is an investment, and the tax money received in exchange is the ROI.
[1] I put "corruption" in quotes because it's just the system working as intended. If the system were actually corrupted, it would somehow start working for the masses' benefit instead.
Think about it. How do you benefit from someone else spending your money for you? Your money serves a means towards an end for whoever spends it, meaning he will be trying to benefit from spending it.
1. Economy of scale 2. I can get 5% on my own but they can get 8%. If he invests my money for me for 1.5% then we both prosper.
So there's at least 2 ways. There are more. Yes it's more complicated, but you asked and I answered.
First of all, "he" is not interested in your well-being, so he might as well get a good deal with a total price of X, but mark down X + Y as the expenses, and then pocket the difference.
And second, free competition drives quality up and prices down, so you'll get a good deal that way too. There's plenty of "economy of scale" in millions of people seeking out the best deal on whatever.
Certainly not, if the $10 is a bribe. Would you?
> A bribe is an investment...
No, it is a criminal offence, in most places. And for good reason. Corruption does horrible things to the economy.
> No, it is a criminal offence, in most places.
You say that like criminal offences can't be investments.
Probably not, even if only because I'm not the kind of person who'd even get into a position to bribe someone for personal gain.
But there's this thing called "psychopaths", and they do seek out bribing opportunities and they don't have any problem whatsoever with paying bribes too.
> No, it is a criminal offence, in most places. And for good reason.
Sure, but the people taking the bribes are part of the organization that's supposed to punish people for taking bribes (i.e. "criminal offenses"). See a problem there?
What is convenient and rational for an agent from the perspective of that agent could be not the more convenient action if all the other agents in the “game” take the same action at the same time.
In a sense, this is the root of the separation between microeconomics and macroeconomics.
In other words, you can benefit from somebody thinking with a global perspective. Of course, finding the incentives for that is a hard problem.
But in case it helps, let's make this a bit more accurate: How do you benefit from someone forcefully taking your money from you and then spending it for you?
(Hint: If you actually did benefit, they wouldn't have to take your money by force - you'd be happy to hand it over!)
In an ideal democratic system, opposing parties would seek to expose corruption in public officials and use it to their advantage, thereby dis-incentivizing the misappropriation of public funds. Obviously no democracy is perfectly ideal, but your armchair analysis hasn't exactly blown a hole in modern governing theory.
In any event, this article specifically makes the airport's woes out to be more of mismanagement than corruption, and you haven't linked to anything else in your response.
Look, "misappropriating public funds" is exactly why someone would work hard to get into a position where he's in charge of public funds. No one does anything without some personal gain involved.
> Obviously no democracy is perfectly ideal, but your armchair analysis hasn't exactly blown a hole in modern governing theory.
On the other hand, you haven't exactly blown a hole in the fact that people act according to incentives, and people in charge of vast amounts of other people's money presents a massive incentive for both bribing them and them accepting bribes.
> more of mismanagement than corruption
How do you tell them apart, especially considering "mismanagement" would be an excellent cover for blatant bribery. "Oh this silly city official guy chose a completely shitty service provider for this project. Maybe he'll check their track record next time!"
So, which country does Germany want to borrow money from in order to cover the wasteful spending?
The 'highest bidder' being the bidder accepting the least interest.
Edit: mea culpa. Looks like you're right : http://www.ft.com/cms/s/0/84a1ddc8-bce5-11e4-9902-00144feab7...
This happens not (only) because it is safer to keep piles of German bonds than piles of EUR, but because of the unorthodox ECB monetary policy. We certainly live in some very interesting times.
http://www.wsj.com/articles/german-government-achieves-balan...
I wonder if anyone has looked at large scale projects like these over the last 100 years and determined what implications (if any) technology has had in reducing these issues.
There are some classes of problems that it definitely helps solve, like keeping the structural engineer and HVAC engineer from design conflicts where a beam and a duct go through each other. But everything needs to be done yesterday, so I'm not surprised that problems that can't be automatically identified are able to slip through.
> “The people responsible for technical oversight were saying, ‘We cannot do this within this amount of time,’ and Schwarz would answer, ‘I don’t care,’ ” he says.
Pretty much sums it up.
EDIT: There's no excuse for the exposed high voltage wiring alongside the low voltage alarm systems though, that sounds like a contractor screwed up. I don't know the German electrical code, but generally in the US anything over 60V is classified as "class 1" wiring and it goes in a conduit. Typically this is a grounded metal tube so that you can't accidentally pound a nail through it, and if anything shorts to the conduit there's a safe path to ground until overcurrent protection trips.
And if for some reason you have lower voltage "class 2" wiring running in the same conduit, those wires (and whatever else they split off to) are now considered class 1, even if they're only low current 24V signal wires or similar. They can no longer leave conduit and go anywhere else, on the off chance that it shorts to the line voltage wires it's sharing conduit with.
I'm on the lighting side of things, so I'm tangentially familiar with electrical requirements but I don't deal with them regularly.
Exact same thing in the arts field - not all clients of course, and I can't think of a recent equivalent to a fiasco of this scale, but the general trend is that clients feel when the cost of technology goes down so should other costs.
Since email is 1000 times faster than shipping drawings back and forth, that means everything I do takes 1000th the time that it used to. Apparently.
IMHO it is a great example for structural failure of the organisation running it, being set up in a way that it couldn't properly communicate or force it's leadership to deal with problems. There even are reports that banks that had been asked to provide guarantees declined to do so after reviewing the management structure, because they thought it would be unable to react to problems properly.
Edit: one of my favorite articles on that topic (German) http://www.der-postillon.com/2012/08/neue-zeitform-futur-iii...
Then again this seems on a much higher level of disaster, but should be familiar to anyone building large government software systems.
http://mysteryoftheiniquity.com/2011/03/20/denver-internatio...
Delusions are terrifying.
That demon horse scares the crap out of me, though.
We call him "Blucifer". He killed his creator (really -- a piece of the sculpture fell on the artist's leg and severed an artery.)
http://www.slate.com/blogs/atlas_obscura/2014/03/17/the_blue...
I was a Delta Gold Medallion flyer for years (50k+ miles), and couple of times flirted with Platinum (75k+ miles). So...basically on a flight a couple of times a week, every week. There are large numbers of us. Denver is a pain in the ass.
Actually, I thought it was just a proposal to link the airport with a foot bridge to the U.S., but it sounds like it is already under construction:
https://en.wikipedia.org/wiki/Cross_Border_Xpress http://www.sandiegouniontribune.com/news/2015/feb/16/skybrid...
https://en.wikipedia.org/wiki/Category:Artificial_island_air...
The big mistake was not connecting it to the city's light rail sooner.
Even if Denver doesn't grow to the airport, I don't see the downside of having an airport a few miles out of town.
Satellite shot: https://goo.gl/peXr25
They still could have designed the individual terminal layouts better though, as the road and garage layout of Terminal D shows.
According to him, you can find the famous German Gründlichkeit in The South, with The North being the exact opposite. He used the Berlin airport as an example: "it was an endless failure". This was in 2011 or 2012. I wonder how strong opinionated South-Germans like him look at this today.
I think for non-Germans the difference in Gründlichkeit is probably not noticeable :)
I really need to learn your language.
http://usa.usembassy.de/classroom/Mark%20Twain/Mark%20Twain%...
If you come to Germany you can take part in any conversations just knowing genau and ach so.
Genau - Exactly, I understand, I agree. Used to express agreement. Germans like to agree. Use freely in any conversation at any time. Ach so - really, I see. Can be used to express agreement, astonishment, realization, understanding, questioning depending on intonation and stress. Na - hello, how are you, hey. Can be used at any time to start or avoid a conversation.
Btw, if anyone is interested, here is a map of what people call the region they are living in: http://www.atlas-alltagssprache.de/wp-content/uploads/2012/0...
Here is an interview with him on EconTalk about the subject: http://www.econtalk.org/archives/2015/05/bent_flyvbjerg.html
If a German airport, with a huge budget, has 150.000 defects of which 85k are serious, then what about airports in other countries, which don't make use of the world-famous german high quality standards ?
What about airports in countries were things are solved with a bribe, a handshake and an evil smile ?
But I heard, big machines and weaponry are still export hits
are not a thing when you subcontract to imtech
My German is pretty basic, but "Geschasster BER-Planer war nur technischer Zeichner ... Doch di Mauro ist kein Ingenieur, wie angenommen wurde" amounts to "Ousted BER-Planner was only a technical draftsman ... but di Mauro is not an engineer, as was thought".
[1] [German] http://www.stern.de/wirtschaft/news/stern-exklusiv-geschasst...
About the only thing large masses of people ever seem to accomplish is throwing fuel into various metaphorical fires.
The internet is a shared infrastructure, just like roads. As such it is serving a common purpose, and doesn't have to make money by itself (rather indirectly through enabling business). That's exactly where the government should be involved in. E.g. It makes more sense to have a single provider rather than several competing ones, providers shouldn't go bancrupt and be closed, and establishing them might require changing laws or evicting/relocating 1000s of people. These are all in the sphere of public responsibility.
Absolutely there should be competition, it's the main driver behind efficiency and quality!
and this: http://istderberschonfertig.de/
Because if nothing moves inside, no air circulates and they get a mold problem.
If you keep scrolling down, you hit the next article and the URL changes. How did they do that? Kudos
I can't imagine the first sprints: First the infrastructure for A320 then iterate through to A380? First the police checks the iterate through to baggage claims? First the roof then the air conducts? It seems the closest to this mind set is: First Tegel Airport then upgrade Tegel again...
The root reason is certainly, we've invented Agile because software industries have hundreds of competitors with fast moving markets and we needed to lower the overhead costs. Even though the article explains how Schwartz pursued moving targets, airports have quite steady markets, competitors (train, etc) aren't massively agile, and there's a lot to gain by studying things ahead.
I suspect that waterfall properly applied would have worked though. This sounds like a failure to nail down the requirements early, combined with a methodology that assumed the requirements would be nailed down early.
Essentially, you'd need to establish the MVP for an airport. An airport without a runway would be useless. How about an airport with baggage conveyor belts? OK, we could manually carry the bags until we've established what desks are busy, how many bags we're carrying, etc. How about shops? Well, maybe the cafés are more important, so lets build those first, and add duty-free shops later. But in other airports, the duty-free shops generate more profit, so maybe those should go first, and then you get a conflict of users needs vs organisational needs.
Most big infrastructure projects are just that - big - because the cost of breaking them down into smaller projects and iterating would be massively more expensive.
I wonder if it would be better to build and contract these things in stages, in blocks of usefulness.
<... and in the end Germany wins>