There has been some exciting growth in the contracting division, with SouthRoads purchasing Steve McLeod Contracting. This business acquisition will allow SouthRoads, and HWR, to expand into rail-based services.

General Manager Contracting Dean Elder announced the new enterprise would be called SouthRail and began trading on July 1.

The purchase is for the assets associated to the rail operations of Steve McLeod Contracting, which currently completes track and formation maintenance work for KiwiRail within the lower South Island using hi-rail excavators. The machinery is specifically built for rail maintenance and construction work. Similar to roading there is a lot of support services associated with rail, including but not limited to, bridging, culverts, retaining walls, vegetation control, slips and drop outs and emergency activities.

This type of work is highly specialised and to ensure smooth running of these new services, the five operators who were carrying out this work with the previous business have come on-board with SouthRail. Steve McLeod will continue to work within SouthRail as its management team get up to speed with the requirements of operating this complex business.

This is a big opportunity and the synergies of the SouthRoads business and rail services are complementary.

“I believe that SouthRoads and SouthRail can successfully lever off each other’s work and provide greater solutions to KiwiRail,” Dean says.