There are some disadvantages in the construction of traditional opencut utility, i.e. low mechanization level and great impact on surrounding environment. As a result, a new shield machine and its corresponding construction method applied to opencut utility tunnels are proposed based on technical advantages of shield method. This method improves mechanization level and automatic degree of open excavation by combining opencut method and the technology of assembling segments in the shield. By taking the utility tunnel construction project in Yehai Avenue in Haikou city for example, the construction process and solutions to water impermeability between segments are introduced. The success of the project shows a new construction equipment and provides a kind of new method for the construction of utility tunnels and similar projects in the future.