Giacomo Bonfanti, Commercial Director, GDI
Part of GDI’s plans for the short term include making investments in areas such as mining where it can be an active partner in project development.
What were some of GDI’s biggest achievements in 2020?
2020 was all about adaptability. GDI focused on adapting, and one of our biggest challenges was the disruption of the supply chain for the oil and gas division because of COVID-19. The oil and gas supply chain is interconnected globally, and this was a big challenge we had to address in April-May 2020. This was especially because we completed a project in Serbia to construct a direct pipe river crossing. It was a significant challenge to guarantee the safety of all the personnel who were overseas developing the project. We completed the project and got all the people and machinery successfully back on Mexican soil. The other major project GDI finished was a hydrocarbons storage facility in Veracruz, the largest one in Mexico to date. The big challenge for us there was having around 2,000 people on one site at the same time when COVID-19 made having people congregate so difficult. We had to learn quickly and ensure that everyone was on the same page at the same time. It was complex, but through hard work, meetings, and action we were able to establish the necessary procedures to ensure our personnel’s safety, the correct flow of the supply chain for the project, and the correct alignment between the port authorities, client, subcontractors, and GDI. The prioritization and correct flow of information became a priority. We completed that project successfully, though it required us to learn how to perform the work in a different and faster way. In hindsight, that achievement was rewarding, but it was also stressful so I would like to thank everyone involved for working daily regardless of the current global context.
In 2019/2020, your aim was to focus on diversifying your portfolio. Are you still going ahead with this plan post-pandemic?
One definite lesson from the pandemic is the need to have a geographical diversification of the company’s activities. We did this successfully. Our project in Serbia was very successful, and our current project in Nicaragua is also one of the first steps we took down the diversification path. As a group that develops infrastructure, it has been clear to us that we would like to verticalize certain aspects of the construction process that are not necessarily construction per se, such as the manufacturing of certain components needed for a plant or certain electro-mechanical works. We set up a financial entity called GDI Capital with the goal of identifying specific companies and projects that the company can invest in. The aim is to diversify some of the operations of the company. We are moving forward with that plan to identify specific projects and companies that could be helped by our knowledge and capital to foster growth through this pandemic. GDI Capital will function like a venture capital entity and identify projects that the group can invest in and earn returns. The idea is to take advantage of the market right now and put the capital to work in industries that are complementary to our industry. We are currently going through the structuring process for GDI Capital. We will be cautious and conservative without jeopardizing the returns we already have at GDI. Mining is a possible area for some of our capital investment, but also where we can be an active partner in the development of these projects. The aim is to find different partners where we can make a project work because the key is to have complementary projects. We do not want the construction company competing with the financial company. GDI Capital should be up and running by mid-2021.