Murray & Dickson Contruction

AN INCLUSIVE, ‘GROW WITH US’ APPROACH TO BUSINESS

MURRAY & DICKSON CONSTRUCTION

Curating a Khula Nathi Culture Murray & Dickson Construction is continuing to successfully navigate a tough industry environment thanks to its ‘grow with us’ way of working Writer: Tom Wadlow | Project Manager: Eddie Clinton

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M

Aeroton Water Tower.

Technically-complex water projects are a major focus for M&D Construction Group

ajor project shortages, non-payment from state entities, hijacking of construction sites – these are all challenges that continue to face South Africa’s building industry.

Indeed, the year 2019 was another challenging one, with many companies collapsing and thousands of skilled workers left without employment, a trend which is showing little sign of reversing in the immediate future unless a concerted, coordinated response from government and enterprise takes place.

However, among the troubles there are some uplifting success stories.

Homegrown Murray & Dickson Construction (M&D) continues to operate successfully and on a sustainable footing, the company increasing its share of a declining national market.

“This bears testament to the skills and capabilities of the group,” comments CEO Rukesh Raghubir, catching up on the last time we spoke with him towards the end of 2018. “Certainly, being an entrepreneurial owner-led business that can respond swiftly to provide solutions is a significant competitive edge.

“Moreover, our focus on only partnering with companies and people with whom we have synergies to achieve our mission of ‘growing a great company with great people and great partnerships’ is also working.”

This latter point is critical, one which is entwined with M&D’s motto of Khula Nathi – grow with us.

It is applied to both employees and the firm’s network of subcontractors and suppliers, a unifying bond which Raghubir says has been crucial in allowing the organisation (and its partners) to not only ride out a tough industry storm, but diversify and develop its portfolio.

“Importantly, we demand loyalty and a firm commitment to our own core values of ‘being safe’, ‘doing it right’, ‘finding the best way’ and ‘doing what we say’ from all our partners,” he Africa Outlook issue 81 | 3

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adds. “In turn, they have reaped the benefits of this unwavering commitment to quality by growing with us.”

CONTINUING TO DELIVER Such growth is about to accelerate into Mozambique.

Through a new wholly owned subsidiary, scheduled to be operational in Q2 2020, M&D will be seeking to participate in the construction of vital infrastructure on the country’s major liquified natural gas (LNG) projects.

The new division will be managed by experienced local energy infrastructure specialists, and has already submitted bids on two landmark developments, including one of the largest greenfield LNG facilities to have ever been given the green light.

Raghubir explains the magnitude of the development, one that involves 6 | Africa Outlook issue 81

building infrastructure to extract gas from a field offshore northern Mozambique, pumping it onshore and liquefying it, ready for further export

by LNG tankers. The second project will produce, liquefy and market natural gas and comprises the construction of onshore facilities, including two LNG trains with a total capacity of 15.2 million tonnes per year.

In order to deliver on these developments, should M&D tender successfully, the company is actively looking to bring in other individuals who have left the country.

“We are in a position where we can handpick the best of the best, considering our solid track-record and history,” Raghubir adds. “There is also an abundance of construction industry skills available.

“However, the challenge is finding

the right people for our company with its specific culture and values.

Experience is just the starting point.

There are a host of other factors that need to be considered to ensure that we have selected the most suitable candidate to fulfil a specific role in our company.”

This project pipeline in Mozambique represents an extension of M&D’s work on other significant energy-related developments closer to home.

These include a R210 million contract to build a catch pot tank at Total South Africa’s Alrode depot, and the successful completion of civil works for three 6,500-cubic-metre jet fuel storage tanks at OR Tambo International Airport. M&D has further worked on the upgrade of the fire-fighting system at both the airport and Transnet’s Kroonstad and Alrode fuel depots.

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CORE CREDENTIALS During the past year, M&D Construction Group has embarked on a restructuring and refocussing exercise.

It is now positioned as a multidisciplinary company backed up with 35-plus years of experience, able to complete work across a range of projects that rely on diverse skills.

The restructured group’s divisions now include: • Infrastructure • Pipelines • Oil and Energy • Special Projects

As well as operating as a Level 1 BBEEE enterprise (54 percent black owned and 23.2 percent female black owned), the company is also certified across a number of areas. These include CIDB 9CE, CIDB 9GB and CIDB 9ME grading, and ISO 45001:2018 Health and Safety, ISO 14001:2015 Environmental Management, and ISO 9001:2015 Quality Management systems.

Further, M&D is a member of the Black Business Council in the Built Environment, the South African Oil & Gas Alliance, the South African Forum of Civil Engineering Contractors, Corrosion Institute of South Africa, Concrete Society of South Africa and the YPO Construction Industry Network.

“On these projects, we also worked alongside prominent consulting engineering firms such as Kantey & Templer Consulting Engineers, SiVEST and VGI Consulting,” the CEO adds.

“Oil and energy projects will be a significant focus for M&D Construction Group moving forward. This division also intends to participate in the construction of wind and solar farms, as well as positioning itself as the construction partner of choice in EPC contracts.

“Meanwhile, we also intend to deploy our extensive skills and experience in structural steel, mechanical, piping and plate work construction, as well as electrical and instrumentation in these markets.”

THE MULTIDISCIPLINARY ADVANTAGE Beyond the energy sphere, M&D has made a concerted effort to restructure

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CONSTRUCTION

Lebone Bokamoso Projects (Pty) Ltd is a 100% PDI owned building and civil construction company established in 2014. The company was founded out of a need to address the socio-economic challenges currently experienced in our communities and to partake in mainstream economic activities.

and refocus its business, making the most out of its multidisciplinary expertise.

This enables the firm to bid on a wide variety of projects, such capabilities highlighted by Raghubir who goes on to detail a number of developments covering water, mining and what the company classifies as special projects carried out by its own dedicated division.

He starts with Rand Water, a longstanding client for whom M&D is building a four-kilometre steel pipeline in Vereeniging, as well as four hot tops which are said to be the largest in the South African market, work which is due for completion in July 2020.

“Other milestone projects for this specific client body include the R250 million 06 Pipeline and associated infrastructure,” adds Raghubir.

“These are complemented by, among others, our work for Magalies

Water, namely the 11-kilometre-long and 508-millimetre-diameter steel Tuschenkost mine pipeline and pump station, as well as the 43 kilometre-long, one-metre-diameter steel pipeline from the Mafenya Reservoir to Evergreen.”

In the Dr Ruth Segomotsi Mompati District Municipality, M&D is helping to deliver a new wastewater treatment works, while further civil engineering construction highlights include the construction of the technically complex Aeroton Tower on behalf of Johannesburg Water, and a large reservoir and associated services for Heineken South Africa.

“Our continued work for the demanding mining and metals sector also remains an immense source of pride for me,” the CEO adds, before outlining several projects. “One is a R300 million contract to construct various civil structures, access roads,

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parking, kerbing, concrete pavements and drainage for Black Mountain Mining’s Gamsberg concentrator project in Aggeneys.

“Moreover, M&D successfully completed the civil works for Coal of Africa’s Mooiplaats operation in Ermelo. The project entailed earthworks and concrete works, including the construction of, among others, a water treatment plant, silt traps, drains and tunnels.”

Other recent mining projects include a 50 ML reservoir and associated infrastructure for Maseve Investments in the North West Province of South Africa, and the installation of an 18.4-kilometre steel raw water pipeline at Northam Platinum’s Booysendal UG2 North Mine.

The third area Raghubir highlights is special projects, a division which he hopes to be involved in the de-construction market for years to come.

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MURRAY & DICKSON CONSTRUCTION The special projects unit has also applied for a license to operate technology that turns sludge into resources, M&D already active in a project that entails using sophisticated techniques to turn wastewater into resources, as well as the development of proprietary turbines, pumps and other energy efficiency technologies.

LOOKING AHEAD As the CEO has already affirmed, such a diverse spread of ongoing projects will only help to futureproof the business against a wider industry backdrop which continues to present challenges.

The largest, without doubt, is the rapidly developing outbreak of COVID-19.

“All M&D Construction Group’s head, regional and site offices have implemented robust measures to safeguard employees and play their

CHAMPIONING DIVERSITY Asked why M&D Construction Group has built into a successful company over several decades, Raghubir is quick to pay tribute to the firm’s cohort of loyal, dedicated employees, dozens of which enjoying tenures of more than a decade and counting.

Another secret to the group’s success is diversity, as highlighted by the CEO. “This is reflected by the company’s client base, supply chain and employees,” comments Raghubir. “While many people fear diversity, M&D Construction Group embraces and encourages it.

“It is a significant strength considering that a nation comprising different ethnicities and people with varying cultures and religious beliefs was able to thrive through so many dark periods in South Africa’s history.

“These include the many anxious and uncertain episodes during the Apartheid era and those, such as the global economic meltdown, during our democracy. It is this diversity that will ensure that we as a nation also endure the more recent ‘state capture’ saga that has had such a dire impact on the entire economy, including the South African construction industry.”

Biological reactor and RAS pump station. M&D Construction Group is strategically positioned as a multi-disciplinary company with more than 35 years of experience that competes in the niche construction markets.

CONSTRUCTION

Top: Oil and Energy projects will be a significant focus for M&D Construction Group moving forward.

Above: M&D Construction Group continues to build on a long legacy servicing the mining and metals infrastructure market. Right: M&D Construction Group continues to demonstrate its extensive capabilities in the oil and energy infrastructure market role in preventing the spread of the virus,” says Raghubir. “However, should a protracted shutdown of the sector become necessary – as has been the case in some of the other local sectors of the economy and elsewhere in the world – this would have a potentially devastating impact on many industry participants.

“This is especially true for smaller companies in the construction value chain considering the very nature of the industry and cash flow. Public private coordination, including relief from the financial sector, will be necessary to save companies and their employees from financial ruin.”

A functioning construction sector is critical for when the virus outbreak passes, the sector responsible for around eight percent of formal employment and 17 percent of

informal employment in South Africa.

And Raghubir is optimistic that the country and region will come through the challenging times ahead, not just those caused by the COVID-19 pandemic.

In his concluding remarks, the CEO outlines his positive outlook for both the sector and M&D, shedding light on several plans which lie in the pipeline for 2020 and beyond.

“President Cyril Ramaphosa has laid strong foundations for growth and we should start feeling the outcome of these policies over the short to medium terms,” he explains. “Certainly, the restructured and refocused M&D Construction Group is well positioned to take advantage of the upturn when it arrives.

“By this time, we intend to have secured R1.5 billion of work, or R375

million a quarter, and built up adequate cash reserves. This is in addition to resolving outstanding claims, as well as developing a marketing strategy and plan to enhance our relationships with all potential and existing clients.

“Our cross-border initiative should also be in full swing and our staff reor upskilled to drive the new focus of the group. Importantly, we also intend to become a 51 percent black women-owned and 100 percent Black owned company.”

MURRAY & DICKSON CONSTRUCTION Tel: +27 11 463 1962/1222 info@mdconstruction.co.za www.mdconstruction.co.za

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MURRAY & DICKSON CONSTRUCTION 1 Somerset Office Park, 5 Libertas Road, Bryanston, Johannesburg, South Africa Tel: +27 11 463 1962/1222 info@mdconstruction.co.za www.mdconstruction.co.za PRODUCED BY AFRICA OUTLOOK MAGAZINE