MAGAZINE
New
frontiers
Equipped to deliver
AUTUMN 2012
Macmahon Magazine Autumn 2012
1
Inside this edition
4
Securing the future
6
Building on our experience
7
Fast track
8
Taming the outback
11 Lifetime achievement
12 Delivering new solutions
16 Keeping it local
18 Driving growth
20 In good supply
22 Dream job
24 New territory
26 Raising ROCKSTARS
28 One-stop shop
Currently directly employing more than 4600 people,
Macmahon offers the full range of underground and surface
mining and engineering services and comprehensive
construction capabilities spanning transport, marine, water
and resource infrastructure services.
• Order book of $3.4 billion
• Revenue secured for 2011-12
was $1.4b as at 31 October 2011
• Directly employing more than
4600 people
Copyright Macmahon Holdings Ltd 2011. All rights
reserved.
There has been a lot of excitement within
Macmahon over the last few months as new
equipment has started to arrive to help meet
the demands of our growing list of projects.
exceptional results
Operational highlights
Macmahon Magazine is published by Macmahon
Holdings Ltd. It is published with due care and
attention to accuracy, however Macmahon accepts
no liability if, for any reason, the information is
inaccurate, incomplete or out of date.
Welcome to the Autumn 2012
edition of Macmahon Magazine.
Your project, our people -
37 Life’s a beach
Issue 4 - Autumn 2012
CEO
An ASX/S&P 200 company, Macmahon has played a major
role in the delivery of many of Australia’s largest multidisciplinary mining and construction projects.
36 Macmahon goes racing
Cover: Taming the outback at the
Solomon Rail Spur construction.
From the
Macmahon is a leading Australian construction and contract
mining company with major projects throughout Australia, in
New Zealand, Asia and Africa.
“...there has been a
significant amount of
additional equipment
purchased in recent
months, as you will
see on pages 18-19.
These additions are
greatly enhancing
our ability to deliver
an increasing range
of work across the
business and will hold
the Company in good
stead for the years
ahead.”
The new 793F trucks have arrived for the
Tropicana project and were assembled at
Westrac’s Kalgoorlie branch in what is a first
for the town (pp16-17). The new trucks have
just made their journey to the Tropicana Gold
Project as we prepare for the commencement
of mining operations in July. It’s a very exciting
time for the project team, which has been
planning for the start of mining operations for
almost 12 months.
While the 793F trucks are the largest in our
fleet, there has been a significant amount of
additional equipment purchased in recent
months, as you will see on pages 18-19. These
additions are greatly enhancing our ability to
deliver an increasing range of work across the
business and will hold the Company in good
stead for the years ahead.
Our underground operations are eagerly
awaiting the upcoming arrival of the world’s
most powerful raisedrill (pp12-15), which
is currently being constructed in Germany
specifically for Macmahon. Our very own
experts have played a key role in the design of
the rig, which will change the way underground
mining operations approach shaft development
in the future. We look forward to taking delivery
of the rig late this year.
There have also been a number of new
projects announced since the last issue,
including site development works for the
Ichthys Gas Project’s onshore LNG facility
(pp4-5), the modernisation of the Trangie
Nevertire Irrigation Scheme (p6), the design
and construction of the Darwin Marine
Supply Base (pp20-21) and the construction
of the Ranger 3 Deeps Exploration Decline
Project in the Northern Territory (pp24-25).
On the people front, it was a great honour to
help formally launch the ROCKSTAR program
with Federal Special Minister of State Gary
Gray MP earlier this year (pp26-27). The
program represents a big step forward in
how we approach Indigenous employment
and training and is already showing results in
the form of some fantastic trainees working
across the business.
I am sure you will find the stories in this
edition are an interesting insight into work
taking place within Macmahon to help
make the most of the Company’s current
growth. With the end of the Financial Year fast
approaching, I look forward to sharing our full
year results with you next time.
Nick Bowen
Chief Executive Officer
Macmahon Holdings Limited
Head office
Level 3, 27-31 Troode Street,
West Perth, Western Australia 6005
T: +61 8 9232 1000
Contact: publicaffairs@macmahon.com.au
www.macmahon.com.au
Macmahon Magazine Autumn 2012
3
Securing the
future
It is the project the Northern
Territory Government has
credited with securing the
region’s economic future and
is expected to generate 3000
jobs.
The Ichthys Gas Project – a joint venture
between INPEX (76 per cent) and Total (24
per cent) – will change the face of the NT oil
and gas industry.
Macmahon will be there at the beginning,
with work already underway on site
4
Macmahon Magazine Autumn 2012
development works for the project’s onshore
LNG facility.
Macmahon General Manager NT
Construction Robert Wilson said the $340
million project to be delivered in joint
venture with John Holland was literally laying
the groundwork for what is the Northern
Territory’s biggest ever gas project.
“Any project that generates 3000 jobs in an
economy the size of the Northern Territory
is going to have a massive impact on the
community,” he said.
“We are really excited to be part of the very
beginnings of a project that is going to
deliver so much to local people.”
The contract was awarded by EPC contractor
JKC Joint Venture between the JGC
Corporation, KBR and Chyioda Corporation.
It will involve earthworks, drainage and
ground improvement works for the
establishment of the onshore facilities for the
landmark project.
Work on the project commenced in April.
NT vision: An artists impression of the onshore LNG facility. Insets (clockwise from top): General Manager NT Construction
Robert Wilson visits the NT Workshop; Robert Wilson; Chief Minister Paul Henderson, Inpex Darwin General Manager
Sean Kildare and Robert Wilson look over the plans.
Macmahon Magazine Autumn 2012
5
Fast
Responsible for one third of the
nation’s agriculture industry, the
Murray-Darling Basin is an essential
part of the nation’s food bowl.
track
Macmahon has boosted its rail capabilities
with the purchase of the remaining 40 per
cent of MVM rail earlier this year.
Building on our
experience
With the water resource management
challenges facing the region now well
known, Macmahon has taken a proactive
approach to being part of the solution.
Building on its extensive experience in
water construction projects in New South
Wales and Queensland, Macmahon has now
partnered with water technology solutions
provider ADASA Sistemas SA to further
develop its service offering.
The partnership launched its first joint
venture project earlier this year, signing up to
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Macmahon Magazine Autumn 2012
complete the modernisation of the Trangie
Nevertire Irrigation Scheme.
The project will return more than 18,000ML
of water entitlements to the Commonwealth
Water Entitlement Holder, improving water
efficiency in the region.
The channel modernisation will include the
reshaping and rubber lining of 153km of
earthen channel, installation of hydraulic
gates, farm outlet meters, pump station
upgrades, SCADA automation and telemetry
for remote monitoring and operation.
A 238km stock and domestic pipeline
network will also be designed and installed,
including the construction of balance tanks
and pump stations to supply stock and
domestic water to more than 90 properties.
The pairing of Macmahon’s construction
capabilities and experience with ADASA’s
water technology expertise will help find
new ways of improving water resource
management in the region.
The project is due for completion at the end
of 2013.
Now known as Macmahon Rail, the
purchase of the remaining stake from
Spanish company COMSA EMTE
provides a more dedicated focus on
the rail industry.
With rail projects in both civil
construction and the resource
infrastructure sector identified as
an area of growth in Australia, the
purchase will see Macmahon pursue
further opportunities to develop the
rail business in future years.
The Company’s association with
COMSA EMTE will also continue, with
the two companies to join forces
when tendering for large projects.
COMSA EMTE’s Technical Services
Department will also continue to
provide Macmahon with support as
required.
Macmahon Magazine Autumn 2012
7
Taming the
outback
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Macmahon Magazine Autumn 2012
Macmahon was founded on its reputation for taking on the projects
that others wouldn’t, no matter how distant their location.
Its proud tradition of working on the most remote and challenging
projects has continued with the Solomon Rail Spur construction,
characterised by the unforgiving terrain of the Pilbara region.
Macmahon Magazine Autumn 2012
9
Lifetime award: CCF SA State President Christopher Reynolds,
Macmahon Chair Ken Scott-Mackenzie and Patron of the SA
Civil Construction Hall of Fame Sir Eric Neal.
Macmahon is constructing the rail formation
against the rugged landscape of the
Chichester Ranges in a project that will further
unlock the resources of the Pilbara region.
The project, connecting Fortescue Metals
Group’s Solomon deposit with its main rail
line, traverses some of the region’s most
challenging country, requiring a massive
cut and fill operation to create the level rail
formation.
Macmahon is literally moving mountains
to create the rail formation, which will see
4.5 million cubic metres of earthworks
undertaken to create the essential link to the
Solomon deposit.
The project is the Company’s first for
Fortescue Metals Group and continues
Macmahon’s long association with the
Pilbara’s resources sector.
In addition to the challenges associated
with the local conditions, Macmahon is
undertaking the project within a condensed
timeline, with completion expected at the
end of the year.
Lifetime
achievement
Just a year before Macmahon celebrates its 50th
birthday, the Company’s achievements have
been celebrated in the state where it all began.
The South Australian Civil Construction Federation recently
awarded Company founder Brian Macmahon the President’s
Lifetime Achievement Award to recognise his strong support for the
industry.
Macmahon won the same award in the Corporate Category in
recognition of its ongoing support for the Federation dating back to
the Company’s early years.
The late Brian Macmahon’s wife, Lysanne, accepted the award on his
behalf, while Macmahon Chair Ken Scott-Mackenzie was on hand to
collect the corporate award.
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Macmahon Magazine Autumn 2012
Macmahon Chief Executive Officer Nick Bowen said the awards were
a fitting recognition of the Company’s beginnings in Adelaide and
credited Brian Macmahon for shaping the success of the organisation.
“Brian’s influence still remains a strong part of Macmahon’s values
and culture today and it is a great honour for all of us to see his life’s
work recognised in this way,” he said.
“Winning this kind of award in the place where the Company was
founded, just as we start to turn our thoughts to 50 years in the
industry, was a wonderful opportunity to reflect on Macmahon’s
ongoing success.”
In a further nod to the Company’s contribution to the South
Australian construction sector, the late Tom Rutter – a founding
member of Macmahon – was also inducted in the South Australian
Civil Construction Hall of Fame.
Macmahon Magazine Autumn 2012
11
Delivering new
solutions
Macmahon will take delivery of the world’s most powerful raisedrill later
this year in a move that could change the future of underground mining.
The rig, used to drill shafts for underground mine operations,
will deliver 50 per cent more thrust than the next biggest
machine, giving clients the opportunities to dig deeper
faster.
Called the RBR 900VF, the rig will be able to drill shafts up to
eight metres in diameter to a depth of up to 2000m – twice
the depth that is currently possible using any other machine
in the world.
The new rig means mine operators will have the chance to
drill shafts to greater depths more quickly and efficiently,
negating the need for costly mid level access drives.
1
2
The RBR 900VF also provides greater automation capability,
making the rig safer to operate.
Macmahon has spent two years working on the design of
the RBR 900VF with German-based Herrenkneckt, which is
currently constructing the machine.
The design draws on Macmahon’s extensive experience in
the sector and helps address issues and challenges faced in
the industry today.
Macmahon will take delivery of the RBR 900VF in November
and will be able to send the rig anywhere in the world to
deliver new solutions to the underground mining industry.
3
4
How it all comes together: The RBR 900VF is an independent mobile unit that is highly automated
to improve safety performance.
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Macmahon Magazine Autumn 2012
Macmahon Magazine Autumn 2012
13
Macmahon Raisedrilling operations: The new
RBR 900VF will join Macmahon’s extensive
raisedrilling fleet.
The RBR 900VF will continue Macmahon’s
global reputation in the field of raisedrilling,
where the Company has long been
associated with industry leading outcomes.
The rig will add to Macmahon’s existing fleet
of 13 raisedrilling rigs, with various capacities.
Macmahon’s existing fleet has a shaft size
capability ranging from diameters of 0.6m
to 6.3m, with completed shafts to 1000m in
depth.
The Company has established a strong
reputation for combining its engineering
and shaft sinking capabilities to deliver new
solutions for clients, which are increasingly
seeking to develop deeper shafts in order to
access resources more efficiently.
The RBR 900VF will build on Macmahon’s
ability to deliver tailored flexible options
to meet the individual needs of each of its
clients.
WORLDS BIGGEST
LARGEST COMPETITOR
Thrust 22,000 kN
Macmahon
3.0m - 8.0m
Thrust 15,500 kN
RBR 900VF
BIG
MEDIUM
SMALL
Redbore 100
121R/85R
84R/73R/Rhino
800/480
3.05m - 8.0m
5.0m
3.5m
2.4m
Macmahon
Macmahon
Macmahon
300m
Safety is dramatically
improved through
automation across the
RBR 900VF’s operation.
The design of the new
rig has eliminated
most of the manual
lifting, pushing and
manoeuvring efforts
required by operators,
vastly improving safety.
500m
750m
Up to
1000m
Depths and widths vary
according to ground conditions
Up to
2000m
Automated drill pipe feeder
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Macmahon Magazine Autumn 2012
Macmahon Magazine Autumn 2012
15
Keeping it
Under construction: the fleet of Caterpillar
793F trucks being constructed at WesTrac
workshops in Kalgoorlie.
local
While mining operations
are yet to begin for the
Tropicana Gold Project,
Kalgoorlie is already
seeing the benefits of
the new gold mine to be
located north east of the
town.
Macmahon has called on WesTrac’s
Kalgoorlie branch to assemble five 793F
trucks in what is a first for the Goldfields
regional centre.
Trucks of this size are usually assembled in
Perth before being transported directly to
mining sites.
Macmahon saw the opportunity to support
the Goldfields economy by assembling the
trucks in Kalgoorlie where the skills required
to complete the work already exist in the
town.
Further equipment will be assembled or
commissioned in Kalgoorlie, including D10T
dozers and a 16M grader and other local
businesses have been engaged to provide
services to the project.
Work is now well underway to prepare for
the commencement of mining operations
in July, with construction of workshops and
mining infrastructure at the project site
beginning in April.
Equipment will start arriving on site in late
May after a 380km journey from Kalgoorlie to
enable initial clearing to begin in June.
The $900 million, 10 year contract will be
delivered for the Tropicana Joint Venture
between AngloGold Ashanti Australia Ltd
and Independence Group NL.
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Macmahon Magazine Autumn 2012
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17
Driving
growth
Macmahon has bolstered its fleet of equipment in recent months, investing more than
$300 million in new gear to help meet the demands of the Company’s growth.
Ranging from dump trucks and dozers to
graders and scrapers, the new equipment
has been deployed to a range of Macmahon
projects over recent months.
While the 793F trucks at Tropicana have
only just travelled to site, a range of new
equipment is already helping drive results at
other Macmahon projects.
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Macmahon Magazine Autumn 2012
Pilbara construction projects have received
new scrapers, which were transported from
the United States before being prepared
for site requirements at Macmahon’s WAC
workshop in Perth.
Meanwhile, new 16M graders have been
dispatched to some of Macmahon’s surface
mining operations.
Macmahon maintains an extensive fleet of
equipment to help meet the needs of its
clients across its projects.
The additional investment in equipment was
in response to the Company’s growth during
the last 12 months, with a number of new
projects announced in 2011-12.
Macmahon Magazine Autumn 2012
19
In good
supply
Macmahon will design and construct the world
class Darwin Marine Supply Base in a project
that will see the Company create yet another
piece of critical infrastructure for the Territory.
The supply base will bolster Darwin as the port
of choice for the offshore industry, through
the construction of a special purpose wharf
and dockside infrastructure to service the
provisioning of Offshore Supply Vessels.
In addition to the new wharf, the project will
include the establishment of an undercover
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Macmahon Magazine Autumn 2012
It’s been billed as the facility that
will secure the Northern Territory’s
future as an oil and gas hub,
providing the much needed link
between the industry and essential
land-based supplies.
warehouse and open hardstand storage areas
with built-in fuel, water and drilling bulks
provisioning capacity. Waste management
and dangerous goods transit services will also
form part of the secure facility.
The $100 million project will be delivered by
the ShoreASCO Consortium, which includes
Asco Holdings, Macmahon and Capella
Capital.
The project is expected to be completed by
the end of 2013.
What it will look like: An artist’s impression of the
Darwin MSB.
Breaking ground: Work has already commenced on site.
Macmahon Magazine Autumn 2012
21
Dream
job
The snow covered ground of Mongolia
is a world away from the Pilbara, but
for one Macmahon employee, both
locations make her feel right at home.
Battsogzolmaa Ulzii-Urshikh (known as Tsoomoo), from
Mongolia, travelled to Australia a few years ago to follow
her dream of working on the mines.
Now a dump truck driver at Macmahon’s operations near
Newman, Tsoomoo has forged a rewarding career in the
heart of the Pilbara – thousands of kilometres from her
home of Ulaanbaatar.
“I always liked working around big machinery” she said.
“I’m happy I got this job and I am willing to learn more
things – the people here are very friendly and supportive,
so it’s nice working with them.”
When news broke that Macmahon was beginning
operations at the Tavan Tolgoi Mine in Mongolia, Tsoomoo
said she was excited for her friends and relatives back home.
“It’s a good thing for Mongolian people,” she said.
“Safety is the number one thing for Macmahon, so if the
Company is in Mongolia it’s very good for people there.
“When I heard it, it was so exciting.”
Tsoomoo said while the temptation to return to Mongolia
was there, her own home and new life in Perth would see
her continue her work in the Pilbara for now.
“I am really proud of this job. In the past, a woman doesn’t
work in this industry in my home. But I’m doing it!”
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Macmahon Magazine Autumn 2012
Right at home: Tsoomoo gets to work in the Pilbara.
Macmahon Magazine Autumn 2012
23
New
territory
Macmahon has won a new project that will see the Company’s
Northern Territory presence go beyond construction.
24
The Company’s Underground operations will join forces with the
NT construction team to carry out the construction of the Ranger 3
Deeps Exploration Decline Project in April.
The contract extends Macmahon’s association with ERA beyond
construction works and establishes the Underground business in the
Northern Territory.
The project – for Energy Resources of Australia Ltd (ERA) – will see
the construction of a boxcut and complete portal establishment, in
addition to 2400 metres of development works.
Work on the decline has begun, with the project due for completion
in 2014.
Macmahon Magazine Autumn 2012
Getting started: The project
team get started on site. Below:
the official signing of the
contract.
Macmahon Magazine Autumn 2012
25
Raising
ROCKSTARS
“I work for Macmahon and I’m a ROCKSTAR.”
They might not be the words you expect to hear in the mining and construction industry, but
Macmahon is recruiting a growing list of ROCKSTARs to join its projects throughout Australia.
The ROCKSTAR program (Real Opportunities
and Careers – Kick Starting Today’s Aboriginal’s
Role-models) was formally launched in February
and boost Macmahon’s national Indigenous
employment and training initiatives.
The program will see 300 Indigenous
people start their careers in mining and
construction over the next 18 months,
providing entry points at a range of levels
from pre-employment training to formal
apprenticeships and traineeships, the up
skilling of people into mainstream positions
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Macmahon Magazine Autumn 2012
and the development of new leaders within
the business.
Receiving almost $4.4 million from the
Commonwealth Government’s Indigenous
Employment Program, the initiative will
ensure Indigenous people Australia wide have
the chance to secure the skills they need for a
genuine career in mining and construction.
The initiative builds on the success of the
Company’s Indigenous Mine Skills Program,
established in Newman in 2006.
A total of 131 people have participated in
pre-employment training since that time,
with 155 Indigenous people also employed as
trainees over the last six years.
ROCKSTAR also supports Macmahon’s
commitment to create 500 new jobs for
Indigenous people by 2015 as part of the
Australian Employment Covenant.
Federal Special Minister of State Gary Gray AO
MP formally launched the ROCKSTAR program
in Perth earlier this year.
Lauched for success: (above) Special Minister of State
Gary Gray MP, Kyah Walker, Macmahon CEO Nick
Bowen and Josh O’Neil at the formal launch of the
ROCKSTAR Program.
ROCKSTAR
Macmahon Magazine Autumn 2012
27
One-stop
shop
As Macmahon’s fleet of equipment
grows, the Company’s dedicated
plant maintenance capabilities have
become increasingly important.
Setting itself apart from many of its competitors, Macmahon operates
two state-of-the-art workshop facilities to undertake vital fleet
management services and keep its equipment operating as efficiently as
possible.
The WAC workshop in Western Australia and the Nebo workshop in
Queensland support Macmahon’s frontline services by providing a
dedicated focus on maintaining the Company’s extensive fleet in top
condition.
The facilities allow the Company to fully maintain its equipment, ranging
from smaller vehicles to larger trucks used in mining operations.
Macmahon has also extended its service offering to provide maintenance
and support available through its workshops to its clients.
The WAC workshop is Macmahon’s main facility and features a
warehouse, dispatch and receival centre, component rebuild workshop,
light vehicle maintenance section, major plant refurbishment workshop,
fabrication section, sandblast and paint shop, high pressure cleaning
wash bay and certified quarantine wash pad.
In addition to the team of trade personnel working at both locations, the
WAC workshop also houses Macmahon’s award winning apprenticeship
program.
Most of the Company’s new equipment has made its first stop at the WAC
workshop, where the specifications of individual sites can be applied
before plant is transported to site.
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Macmahon Magazine Autumn 2012
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29
Macmahon goes
racing
Motorsport enthusiasts around the
nation flock to the V8 Ute Racing Series
and this year Macmahon is in the
middle of the action.
Life’s a
beach
Followers of the sport would have already seen the
Macmahon Ute in action at Tasmania, South Australia
and Western Australia as driver Gerard McLeod vies for
the championship points.
The sponsorship seeks to build Macmahon’s profile
in the sporting arena to help support its recruitment
strategies over the next 12 months.
Renowned as one of Australia’s toughest racing
categories, the series has already featured some
outstanding racing in the season’s initial three events.
It is McLeod’s first season in the V8 Ute Series, after
experience across several categories including karts,
Formula Vee, Formula Ford, Production Cars and
Commodore Cup.
With future events to be held in the Northern Territory
and various locations on the East Coast, keep a look
out for the Macmahon Ute as the series continues.
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Macmahon Magazine Autumn 2012
The summer of 2011-12 saw Macmahon embark upon its first season with the
Cottesloe Surf Life Saving Club in a new sponsorship that helps the not-forprofit organisation keep beachgoers safe during the summer months.
Macmahon signed up as a silver sponsor of the Club to support the vital service provided by the volunteer
life savers who patrol the beach each summer.
The sponsorship was confirmed in recognition of the strong association between Macmahon’s Company
values of safety and teamwork and the important work of the Cottesloe Surf Life Saving Club.
The Club is an iconic Western Australian organisation, with more than 1000 members aged from five to 92
years.
With a core focus on providing basic life saving skills, the Club has fulfilled its important role in the
community for more than 100 years.
In recognition of the Company’s support, one of the Club’s Inflatable Rescue Boats (IRBs) was branded
Macmahon for the busy summer period.
During the 2011-12 summer, the IRB patrolled swimmers at a range of local events, including the Juniors
Surf Carnival, Nutri Grain Ironman, Indian Ocean Classic, Cott Mile and the Rottnest Swim.
Macmahon Magazine Autumn 2012
31
Your project, our people -
exceptional results
Macmahon continues to capture new opportunities and grow.
As a leading contract mining and construction company, Macmahon has
operations across Australia and an expanding international footprint.
Having built strong relationships with some of the world’s largest
resources companies and government sector clients, Macmahon
has delivered many of Australia’s largest multi-disciplinary mining and
construction projects throughout its 48 year history.
Currently Macmahon directly employs more than 4600 people.
Macmahon offers the full range of underground and surface mining
services and comprehensive construction capabilities spanning transport,
marine, water and resource infrastructure services.
www.macmahon.com.au