NEW PROJECTS
Offshore jobs keep construction groups afloat
Consolidation in the sector could bring construction companies back into vogue
Offshore work should sustain local listed construction players as they grow impatient at the slow infrastructure spend and lack of new projects in SA. Murray & Roberts, Aveng and Wilson Bayly Holmes-Ovcon (WBHO) have undertaken new projects in Australia and other offshore jurisdictions. Australian revenue accounted for 61% of WBHO’s group revenue in the six months to December. CEO Louwtjie Nel says while JSE-listed construction groups like WBHO are committed to continuing to do business in SA, they have to operate in other markets in order to survive. In the past five years or so government spending on infrastructure has slowed significantly. From a private sector point of view, most work had been related to the building of new shopping centres but this is now in the past. "SA is overshopped now. We were involved in various retail projects, including the Mall of Africa, but currently all our South African work is not in retail. We need infrastructure spending to come back but until ...
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