Roy Hill boon for Goodline
■ While other contractors have come unstuck at Roy Hill, the Pilbara iron ore project has been good to private operator Goodline.
NRW Holdings, Laing O’Rourke and other sub-contractors have been embroiled in payment disputes with project manager Samsung C&T, but Goodline has worked on four Roy Hill jobs without drama.
The Queensland-based company was already involved in the project when called in to complete port facilities earlier this year after Laing O’Rourke left the site.
“We built a good relationship from day one, ” Goodline co-owner and managing director John Kennedy said, adding his team had offered solutions to accelerate project work.
“Good management, that’s the secret, ” Mr Kennedy said. “And on top of that, a good workforce.”
The construction and maintenance services provider more than tripled its fiscal 2015 profit to $25 million profit, a result partly attributable to systems problems the year before.
Revenue was up three per cent to $295 million. Mr Kennedy said about 75 per cent of that came from work in the Pilbara.
Goodline has had a decade-long presence in Port Hedland, from where it has done work for BHP Billiton, Rio Tinto, Fortescue Metals Group and the local government. “We’ll be there for ever, ” Mr Kennedy said.
“We spent a fortune on that Port Hedland workshop. It was a rundown dump when we got there.”
He said a tightening market for construction work would likely lead to a softer fiscal 2016.
However, recurring maintenance work accounts for about half of Goodline’s revenue.
Mr Kennedy said other contractors more reliant on construction would be doing worse.
Goodline at work on the Roy Hill project.