C E M E N T I N G R OA D CONSTRUCTION EX Raubex Roads and Earthworks is driving the acceleration of the South African construction industry. We speak to the Managing Directors of the four pillars that have cemented the division as the frontrunner in road construction for nearly 50 years Writer: Lucy Pilgrim | Project Manager: Kierron Rose
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D AND XC E L L E N C E
RAUBEX ROADS AND EARTHWORKS CONSTRUCTION
R
aubex Roads and Earthworks is a division of the wider Raubex Group (Raubex), South Africa’s leading infrastructure development and construction materials supply organisation. As titans of the South African construction industry, the group operates throughout Southern Africa and Western Australia. Established in 1974, Raubex was listed on the Johannesburg stock exchange (JSE) in March 2007 and is proud to have operated with integrity, professionalism, and quality in all its work. As a specialised division, Raubex Roads and Earthworks is a global industry leader in road construction and earthworks, whilst similarly excelling in road surfacing and rehabilitation. These services comprise the laying of asphalt, chip and spray, surface dressing, enrichments, and slurry seals. Following over two decades of strategic acquisitions in the group, the division was finally consolidated in 2021, which allowed it to expertly operate in the roads and earthworks sector and general civil engineering construction space. Africa Outlook Issue 105 | 3
RAUBEX ROADS AND EARTHWORKS CONSTRUCTION
RAUBEX CONSTRUCTION A prominent construction company based in Bloemfontein and Pretoria, South Africa, Raubex Construction (RCON) is the oldest and largest entity in the division. Historically, it has been the core component in the group’s portfolio and was instrumental in its significant growth and success over the last five decades. “Unlike many other subsidiaries within the wider group, RCON was here from the beginning. Founded in 1974, its initial key areas of expertise focused on road construction and earthworks,” introduces Wouter van der Merwe, Managing Director of RCON.
“RAUBEX CONSTRUCTION’S FOUNDING VISION ALIGNS WITH THE DIVISION’S OV E R A R C H I N G M I SS I O N O F D E L I V E R I N G I N F R A S T R U C T U R E T H AT C O N T R I B U T E S T O S O C I E TA L D E V E L O P M E N T, E C O N O M I C G R OW T H , A N D T H E I M P R OV E M E N T O F T R A N S P O R TAT I O N N E T W O R K S ” – W O U T E R VA N D E R M E R W E , M A N A G I N G D I R E C T O R , RAUBEX CONSTRUCTION
Wouter van der Merwe, Managing Director, Raubex Construction
Subsequently, the company expanded and diversified its repertoire to become one of the cornerstones of Raubex Roads and Earthworks’ offerings. RCON’s resounding success is a reflection of the culture and the staff’s extensive experience and background in the industry. Van der Merwe grew up in a family where construction runs in their blood, as WP Construction was founded by his grandfather in 1954. For the subsequent five decades, the company operated in a similar niche market to that of RCON in the 1970s to 1990s. 4 | Africa Outlook Issue 105
“The company became part of Raubex in 2008. After graduating from university in 1999, I joined the family business which had been passed on to my father,” recalls van der Merwe. Today, under his leadership, the company has established itself as a leading player in the national and international construction industry, offering a diversified range of services across a multitude of sectors. “We are certainly the largest of the four companies in the division in terms of revenue, human resources, and equipment,” he emphasises.
“Due to our considerable size and abundance of highly skilled and experienced professionals, coupled with our established track record of successful execution of projects exceeding ZAR1.5 billion in value, we possess a substantial capacity and fulfil the criteria necessary to competitively bid as the principal contractor for megaprojects.” RCON specifically specialises in road construction, earthworks, infrastructure development, materials supply, and civil engineering works, amongst other construction-related activities.
Musina Ring Road
RAUBEX ROADS AND EARTHWORKS CONSTRUCTION
The numerous megaprojects the company has undertaken demonstrate its strategic expansion across Southern Africa. “Our footprint since inception can be found as far up as Zambia where our work often involves government contracts, private sector initiatives, and public-private partnerships,” van der Merwe highlights.
RCON’S N3 CATO RIDGE AND N3 DARDENELLES PROJECTS This project foresees the upgrading of section two of N3 between Cato Ridge and Dardenelles, and Dardenelles and Lynnfield Park.
N3 Cato Ridge. Prime Time. © Barend Summers
This will be executed via the following work: • The opening and rehabilitation of road cuttings. • Constructing two additional lanes in each direction. • Lengthening of underpass structures. • Widening of outer edges of the carriageway to provide for additional lanes. • Constructing auxiliary lanes on-ramp and off-ramp. • Strengthening of existing N3 pavements.
N3 Cato Ridge. Packing of precast bridge beams. © Barend Summers
• Interchange improvements to ramps, crossroads, and roadover-road structures. • Cross-draining pipe culverts along N3 routes. • Providing new ramps and upgrading provincial roads. • Constructing retaining walls.
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One recent project that RCON is most proud of is the Beitbridge Border Post modernisation in Zimbabwe, which was executed in a 50/50 joint venture with Raubex Building (Pty) Ltd., a company in the infrastructure division. This involved overseeing and implementing the expansion, upgrading, improvement, and overall renovation of the border post.
This project is an integral national milestone in reaching Zimbabwe’s socioeconomic development goals, with the design, finance, and construction conducted on behalf of the Zimbabwean government and was the first public-private partnership (PPP) that was delivered on time without any claims. The work included a complete re-design of the current border post,
N3 Cato Ridge. Sunset on productive day. © Pieter Neveling
RCON ANCILLARY WORKS • Fencing of road reserves. • Provision of road markings. • Installation of road studs and new road signs. • Erection of new guard rails. • Construction of gabion walls. • Top soiling, grassing, and finishing of road reserve, spoil areas, and the quarry. • Lighting of the freeway mainline on-ramp and off-ramp. N3 Cato Ridge
with three traffic streams. Each traffic stream includes a terminal building, gatehouses, search and scan facilities, and storage warehouses. The area covered totals an impressive 30,000 square metres (sqm). Furthermore, concrete hardstand areas for all parking and roads were also conducted, totalling 130,000 sqm, alongside new services addressing water, sewerage, and electricity
streams for the border post. Work outside the border included a 50,000 cubic metre (m3) oxidation dam, 220 staff houses, as well as the building of associated road and water pipeline infrastructure to and from the reservoir, amongst more. The border post will be managed and maintained by Raubex Facility Management for 17 years, after which ownership will be bestowed to
Zimbabwe. RCON is also currently working on two greatly substantial contracts on the outskirts of Durban in Kwa-Zulu Natal, along the National Route 3 (N3) that extends between Cato Ridge and Lynnfield. The combined valuation of these contracts sits at more than of ZAR2.9 billion, making it the largest operation in RCON’s portfolio. Africa Outlook Issue 105 | 7
Briefly introduce us to Umbuso Wamaqadi Contractors. Umbuso Wamaquadi Contractors (UWC) was started in 2013, so we are 10 years old now. The name itself is inspired by one of the original owners from the 1980s, so there is a legacy that comes with that. We are a road and earthworks business, but we also have experience in civil structures, and we recently completed the first phase of a bridge project. In the last 12 months, the bulk of our revenue has come from our quarry management and crushing, and the completion of our very first asphalt paving job. What are some of the ongoing or recent projects that you are most interested in showcasing? The core of our business for the last five years has been based around gravel rehabilitation jobs, such as the one we are currently busy with in Mooi River, the client being the KZN Department of Transport. These projects have been key for us, and the sustainability of the business.” We have also been involved in the Pisang Bridge Project, drilling into rocks, and the next phase of this project will be the deck and road construction. This was our first big involvement in a bridge project, so that was very exciting. We have also worked with Raubex Construction, on the Newlands’ roads. UWC assisted with the resurfacing of three main roads in the Newlands area. Again, this was our first asphalt job, and we were very busy with the ancillary works. Finally, we have been supplying aggregate and gravel materials to Raubex Construction, and we have supplied them with G7 Gabian stone, minus 120mm pioneer materials and will soon start supplying G4. What, for you, differentiates your business from the competition?
I think for us, it is the fact that we are always looking for new opportunities to gain experience and learn. A year ago, we knew nothing about crushing, and today UWC can say that that is about 50 percent of our revenue. That growth can only be done and can only be sustainable by capacitating yourself. That is to say that when an opportunity comes to you, you grab it with both hands and humble yourself in every situation so that those partners can continue to teach you and you can continue to grow. We learn from our mistakes, and we continue to build from there. So, what makes us different is the fact that we are always learning and evolving, and that is how we have kept our relevance. That is how we continue to grow and, honestly, that is how we do not feel trapped in a routine, coasting along, and so we are different in that way. Could you tell us about some of the major challenges faced within the industry and the business itself and then detail how these have been overcome? I think for a company of our size, there are two
main challenges: our access to funding and the effects of the COVID-19 pandemic. In terms of funding, there are often roadblocks along the way, whether that be due to the contracts themselves, or the commercial banks. We have had to stick it out, and now that we are a midsized company, I can comfortably say that having those conversations gets easier. But it was our willingness to stick it out that afforded us that comfort now. Banks are not easy to convince, especially within construction. The effects of the COVID-19 pandemic are not exclusive to us, of course. UWC, much like many other companies, struggled to find projects in 2020 and 2021. The main thing that helped us overcome this difficulty was having made connections before then and using that time to grow internally. In that first year of the COVID-19 pandemic we grew over 100 percent. Now, of course, we are looking at insurance options to sustain us if an event like that happens again, so we are learning to manoeuvre around these challenges. What are your major future ambitions going forward and how will these goals be achieved? Our first major ambition, which was a target when we started the year, is to move from a CIDB Grade 6 to a Grade 7 CEPE. We are already busy with that application. Long term, our five-year plan is concerned with moving from predominantly subcontractor work to becoming the main contractor on projects in which we are involved. That means we need to get our revenue to about 120 million a year for three years. We have to make sure we have the right people to fill the right positions in order to achieve this and that takes time at careful attention. Could you tell us more about your plans to address the challenges of youth unemployment and skills development? One thing that is apparent within the construction industry is the gatekeeping. People get settled and comfortable in their roles and that is fine, but we have chosen not to be that kind of contractor. So as far as offering young people employment, we can only take in as many people as we can. We have an opportunity to change the lives of people. We are helping two of our employees set up their
own business currently. These guys started as general workers in our Gabian laying team and they then became supervisors for two separate teams, so whenever we work on projects that require Gabian teams, we always turn to these guys. We wanted to open the industry up for them. We do not keep these opportunities for ourselves, instead, we value our communities. We want to help guide people on their career path, whatever that may be, and in terms of skills development, we also have a lot of inexperienced staff, new staff that have recently joined and they’re already involved in various training programmes. Shadowing is also a big part of the training process here, as we feel this gives our employees sure footing a lot sooner. What are you most proud of in relation to the company overall? We have a lot to be proud and thankful for. I am most proud of our growth in the last 12 months. We used to be a small business and I am happy to see that small business growing. A lot of people will say that too much growth in a short space of time is risky, but the people at UWC are ready to take it on and continue to evolve. We always have room for improvement, and I am proud of how we manage everything, but most importantly I am proud of the people we work with every day. What does the next 12 months look like for the business? Mostly, we are looking for stability. We are amazingly comfortable in most areas, but, of course, there are still areas where we would like to develop more. We also want to keep up the stream of work and make sure that it is sustainable for years to come. Ultimately, we want to maintain our growth, continue developing our skills, and keep our people in business, particularly our newer staff.
Unit 2c, 5 Sinembe Crescent, La Lucia Ridge, 4319 admin@umbusowamaqadi.co.za +27 31 003 6723 umbusowamaqadi.co.za Umbuso Wamaqadi Investments Umbuso Wamaqadi Investments
RAUBEX ROADS AND EARTHWORKS CONSTRUCTION
N1 Fogspray - Hexriverpass
ROADMAC SURFACING An adjacent subdivision that is also part of Raubex Roads and Earthworks is Roadmac Surfacing (RMS). Founded in 1997, it specialises in the rehabilitation and surfacing of roads, consisting of predominantly asphalt and chip and spray surfacing. “I grew up farming, so machinery and construction has always been a part of my life,” says Erik Grové, Managing Director of RMS. The company has cemented itself as the leading light road rehabilitation contractor in the region, possessing the impressive ability to surface over 10 million sqm of road per year. RMS tenders and executes work with RCON, alongside completing its own projects. “Our operational area consists of all the inland provinces as well as Namibia, where we work for South African National Roads Agency Limited (SANRAL), N3 Toll Concession (N3TC), TRAC, Bakwena, alongside 12 | Africa Outlook Issue 105
anticipates working on the R21, a significant north-south provincial route in the Gauteng region. This has become a very high-profile project due to the urgency of the repairs required and its association with the Gauteng Freeway Improvement Project (GFIP) and electronic tolls. “We are focused on broadening our client base and therefore looking forward to future projects working with toll concessionaires,” Grove tells us.
ROADMAC SURFACING CAPE Erik Grové, Managing Director, Roadmac Surfacing
other provincial departments and municipalities in the local area,” Grové states. The company currently has a staff base of 300 permanent employees, with a further 200 in reserve for larger operations. As RMS ventures into 2024, it
As another adjacent subdivision that is also part of Raubex Roads and Earthworks, Roadmac Surfacing Cape (RMSC) is a key contributor to the wider construction industry, operating in the Eastern, Western, and Northern Cape regions of South Africa. “The company is dedicated to maintaining high standards, quality work, and ethical business practices,” Grové tells us.
Pienaarsrivier: Coring at sunrise. Barnes Letanta
RMS’S RECENT PROJECTS ROADSIDE: Paved 304,000 tonnes (t) of asphalt and surfaced 60,685 sqm of 14 millimetre (mm) seals, as well as 133,200 sqm of 16mm seals. In partnership with N3TC, it was the first project that surpassed ZAR1 billion, reaching completion last year. WELKOM R730: Working with SANRAL, the company repaired the existing base of the road by 8,135 m3 by recycling pre-existing resources, and paved overlays of 35,714t of AR1 asphalt surfacing. US3: In partnership with Bakwena, RMS milled out and paved back 18,604t continuously, followed by an asphalt overlay of 71,510t medium, with an achieved internalised-resource identifier (IRI) average of 0.75 over the whole project.
N7 Northern Cape Fogspray 1
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RAUBEX ROADS AND EARTHWORKS CONSTRUCTION
RMSC’S NATIONAL ROUTE R336 UPGRADES The project entails the following components: • Relocation of services in urban and peri-urban areas. • Accommodation of traffic including pedestrian, nonmotorised, and vehicular traffic. • Rehabilitation of the existing road through Kirkwood and on the R336, including the construction of a new sub-base and crushed stone base. • Addition of climbing lanes and left and right turn lanes. • Construction of a roundabout. • Building of a lightweight structure to the side of the deck, located on the inside curve of the bridge to carry nonmotorised traffic. • Construction of non-motorised facilities to accommodate pedestrian movement. • Stormwater improvements along the R336 and in town, including culvert crossings, subsurface drainage systems, earth and concrete side chains, and cut-off drains at cuttings. • Base patching, crack sealing, edge break repairs, as well as texture slurry and construction of a double seal using 14mm and 7mm aggregate. • Other ancillary road improvement elements include the installation of service ducts, kerbs, guardrails, road markings, road signs, and road studs.
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With approximately 500 employees and a substantial construction plant base, RMSC offers a plethora of services including asphalt overlays, major road rehabilitation with in-situ stabilisation, minor road rehabilitation including asphalt patching, road rejuvenation, road reseals, earthworks, and greenfield road construction.
“Our clientele has grown over the years and now includes SANRAL, provincial governments, municipalities, and various private clients,” he adds. The company covers a wide geographical range, operating across the bulk of the Northern and Eastern Cape provinces, alongside the entire Western Cape province. This ensures
that RMSC is well represented in these areas. RMSC’s major projects include the upgrade of the national route R336 between Kirkwood and Addo. Phase one of this operation takes place in the southern part of the Eastern Cape. The relevant local authorities overseeing the project are the Sarah Baartman District Municipality and
the Sunday’s River Valley Local Municipality, as the entire length of the road falls within the two. The successful execution of this project will strengthen RMSC’s reputation in the region and the wider construction industry. To bolster its advantageous position, the company’s key priorities for the coming year include ensuring a
safe environment for all stakeholders on its projects, as well as meeting specific targets and timelines. Meanwhile, RMSC will also continue its ongoing investment in employee training and development, whilst exploring opportunities for growth and diversification within the construction industry.
Africa Outlook Issue 105 | 15
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RAUBEX KZN As the fourth subdivision of Raubex Roads and Earthworks, Raubex KZN (RKZN) operates across KwaZuluNatal, whilst also working in other provinces simultaneously if needed. “Our clients and activities have changed to keep up with all the recent growth of our megaprojects,” says AJ Kruger, Managing Director of RKZN. “Strategically, we try not to have all our eggs in one basket and aim to expand our client base.” Kruger is deservedly proud of the success RKZN has enjoyed, having first started with Raubex Roads and Earthworks in the mid-1990s after graduating from Technicon Free State CUT in South Africa. However, he always knew that he would be an influential figure in the industry.
“ O U R H I STO RY G I V E S U S T H E A D VA N TA G E A S W E W E R E F O R M E D F R O M F O U R S P E C I A L I S T C O M PA N I E S , SO WE CAN HANDLE JUST ABOUT E V E RY P OSS I B L E R OA D CO N ST R U C T I O N SITE THERE IS” – A J K R U G E R , M A N AG I N G D I R E C TO R , R AU B E X K Z N
AJ Kruger, Managing Director, Raubex KZN
“I grew up in a construction home as my father was a building contractor and my uncle was a civil engineer. Construction is just part of who I am,” he fondly says. Kruger initially began his time with Raubex as a Construction Surveyor and was keen to gain valuable knowledge from his surroundings and progress through the company as he obtained more experience. Fast forward to 2021, and Kruger was given the role of Managing Director, having taken the company to new heights for approximately three years. 18 | Africa Outlook Issue 105
RKZN’s eclectic team means that the company has the necessary skills and experience across all departments of road construction. “Our history gives us the advantage as we were formed from four specialist companies, so we can handle just about every possible road construction site there is.” As such, the company’s repertoire ranges from standard greenfield bulk earthworks and road construction to projects that focus on road rehabilitation, which is becoming more common recently.
Moreover, RKZN’s other key areas include asphalt milling and fine milling, as well as specialising in asphalt paving, seal works, and milling operations. “We are one of the few companies in the country that can produce in-plant bitumen stabilised materials (BSM) using recovered asphalt (RA) and the placement of BSM with pavers as base course layers on roads,” Kruger elaborates. Notable projects of RKZN include the upgrade of National Route 2 (N2), spanning the KwaMashu Interchange to the Umdloti River Bridge.
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RAUBEX ROADS AND EARTHWORKS CONSTRUCTION
“This is the first megaproject taken on by RKZN, and we are very proud of the progress and the level of execution achieved. We have a very large staff contingent gaining invaluable experience on this project,” Kruger explains. Moreover, RKZN was responsible for the construction of the civil and electrical infrastructure at Dube Tradeport, specifically working on Agrizone 2. The project is strategically located adjacent to King Shaka International Airport, providing additional support for trade. “This is a special project for us as it is nearly complete, will be delivered on time, and is within the client’s budget. “It has so many different aspects and can be seen holistically as an infrastructure project that started from the greenfield zone to an operational trade zone for the agricultural sector.” This operation included managing the mass earthworks of Agrizone 2 as well as implementing a stormwater management system to harvest ponds. RKZN also constructed a two-lane main access road, accompanying guardhouses, and an internal roads network. Moreover, the company implemented access control and CCTV surveillance, bulk electrical infrastructure, clear view perimeter fencing, erosion protection for landscaping and signage, and constructed paved walkways for pedestrians and cyclists.
RAUBEX KZN IMPROVEMENTS TO N2 KWAMASHU Capacity improvements to N2 from the KwaMashu Interchange to the Umdloti River Bridge include: • Widening in the median for both carriageways. • Widening on the outside for both carriageways. • Construction of a 4.2 kilometre (km) concrete median barrier wall. • Building of vertical cutting retaining walls on the outside. • Construction of vertical fill retaining walls on the outside. • Sufficient drainage for the widening of the carriageways, including open drains, catch pits, and manholes. • Remedial work to the main carriageway’s existing pavement, including its mill and replacement. • Rehabilitation and widening of existing structures, including bridges and culverts. • Implementation of electrical works, including street lighting. • Concrete and structure work conducted by EMPA Structures, a part of the Raubex Infrastructure Division.
RAUBEX ROADS AND EARTHWORKS CONSTRUCTION
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ON THE ROAD TO GREATER SUCCESS Raubex Roads and Earthworks endeavours to continue to grow and improve through four key, strategic areas. Firstly, Raubex Roads and Earthworks strives to select projects that align with its values and future direction, supported by a focus on securing contracts that match the division’s trajectory and expanding repertoire. “This means having a steady stream of work to keep our division strong. While we plan to grow, we’re also mindful of expanding at a measured pace without compromising on having enough skilled people to handle our work effectively,” comments Jaco van der Bijl, Managing Director of the division. Another important goal for the company is to ensure the diversification of its projects, branching out beyond construction to clients in sectors such as mining. In turn, this will create a more balanced portfolio and make room for emerging opportunities. Lastly, the division is also delving into the public-private partnership sector. “We see this as a chance to evolve while also being wary of unmanageable growth. As such, we 22 | Africa Outlook Issue 105
will explore new avenues and strive for success in the evolving landscape of construction and related industries with Southern Africa,” van der Merwe envisions. “Our priorities as a team are to execute these contracts to a high standard. We need to focus on profitability and managing the rising costs of materials. We work hard on finding innovative ideas to make processes on-site easier and more profitable,” Kruger affirms. “People retention is also a great focus for the division going forwards, as it endeavours to cultivate a culture that is welcoming and offers consistent career development and growth,” van der Bijl adds.
UNITING AS ONE DIVISION Each company is a vital component of the wider division, creating an enterprise that is well supported in not only meeting but exceeding its clients’ expectations. For example, due to the sheer operational size and abundance of megaprojects, RCON has the capabilities to harness the expertise of the three other affiliated entities, as well as the Infrastructure and Construction Materials divisions, by leveraging their skills and capabilities. This is endorsed by the likes of
RMS, who work closely with RCON by taking care of all the surfacing required of its projects, whilst also assisting across other regions with additional paving, chipping, slurry, and hydro cutting. “Our specialised skills are used by the whole of the division, and we are providing back up in all departments to have a complete package in terms of execution. This position enables us to grow as a division and increase our skills and ability to take on megaprojects without losing a night’s sleep. Consequently, we are in the right place at the right time,” reflects van der Bijl. Through the close support of each entity in the division, the overall capabilities of all the companies are strengthened, as van der Bijl elaborates. “This vision may encompass aspects of quality construction, sustainability, innovation in road infrastructure, and a commitment to meeting the evolving needs of communities and stakeholders.” As the saying goes, ‘if anyone can, Raubex can!’
RAUBEX ROADS AND EARTHWORKS www.raubex.com
RAUBEX ROADS AND EARTHWORKS CONSTRUCTION
Unitrax Trade & Invest +27 082 855 962 | admin@unitrax.co.za
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