Written by John Feary Thursday, 17 December 2009 00:00
HOW should a business leader respond to an investment opportunity that offers a return of $50 for every $1 invested? According to Curtin University of Technology's Professor Rolf Gubner they wouldn’t get that in any bank or stock market, unless they’re very lucky, but smart thinking gives access to a potential goldmine.
Prof Gubner is director of the Western Australian Corrosion Research Group (WACRG), and his aim is to show how Australia can save billions each year by being smarter in how we deal with corrosion.
The WACRG has been operating at Curtin for around 20 years but two recent significant steps have been the appointment of Prof Gubner at its head just over 12 months ago and its move in late November this year to Curtin's brand new, $116 million Resources and Chemistry Precinct.
Prof Gubner's team carries out research into the causes of corrosion and techniques to combat it, provides advice on reliability engineering and is moving towards a higher profile in general community education on asset preservation.
Much of the research work is done for petroleum giants Chevron and Woodside Energy, who combined to fund Prof Gubner's Chair in Corrosion Engineering but the group also advises a range of business and government organisations as well as private individuals.
Everything corrodes, from petroleum pipelines and mineral processing plants to bridges and highways, all the way down to domestic water heaters and drainpipes. No industry or household is immune, says Dr Reza Javaherdashti, a research fellow at Curtin’s School of Civil and Mechanical Engineering.
“Almost all engineering materials, such as steel, plastics and concrete, are subject to corrosion and degradation. That includes all vehicles, buildings and infrastructure.”
The generally accepted estimate around the world is that economic losses due to corrosion average 3 percent to 3.5 percent of a country's gross national product which in Australia's case amounts to over $30 billion a year.
Yet it is easy for industry and government decision-makers to ignore (until a train derails, a bridge falls down or a pipeline ruptures).
The best estimate of what can be saved by proper asset protection practices comes from the United States Defense Department. The department spends $US22.5 billion a year on basic reactive maintenance at thousands of bases and properties - finding corrosion, scraping it off and re-painting.
Over the last five years, the Department began proactive research and demonstration programs designed to bring down those costs.
"The first projects that have been running they have managed to get a return on investment of 50 to 1," Prof Gubner says.
"For every $1 invested they got $50 back in reduced maintenance costs. That's a huge potential saving available."
For industry, the WACRG is able to undertake contract research on a non-profit basis, and private individuals can also get advice on domestic corrosion issues free of charge all part of what Prof Gubner sees as the university's duty to the community.
