Construction Machinery ME

ISSUE 22 13 AUGUST 20

TRACK AND FIELD The virtues of using GPS

ThE BIG BOuT

Manitowoc Vs Sany America

RAIL, RIOTS & RESuLTS

What can Qatar learn from Brazil?

HEAVY OPERATION WORk-OuT

TIME TO GET RIPPED Build for growth

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Plus: ACROss THE INDusTRY

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NEWs & VIEWs

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HEAVY HITTERs

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RAW POWER

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Contents

38 IS S U E 2 2 013 AUGUST 2

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Editorial Lessons to be learned from Saudi Arabia’s upheaval of its workforce and employment system.

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NEws What’s happening across the region in construction machinery?

10 page 54 It’s crunch time for your operation

“Select kit based on the method of work and site conditions, adjust the volume capacity of the heavy equipment to the job.”

NEws aNalysis Is labour sharing the answer for Saudi’s workforce crisis?

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CoMMENt CMME’s new international editor Stian Overdahl on the challenge facing Chinese manufacturers in the region.

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CasE oN tour CMME catches up with CNH’s man in Middle East and Africa.

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MaNitowoC Vs saNy aMEriCa Can Manitowoc prove that Sany America has been stealing ideas as well as knowhow?

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rail, riots aNd rEsults What Brazil can teach the industry as well as Qatar?

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Raw power

36 TIME TO GET YOUR OPERATION FIT FOR GROWTH Construction Machinery Middle East’s workout for your company. Page 40 KEEPING TRACK OF YOUR FLEET Technology that can help you keep down costs and your fleet moving. Page 46 THE LAST WORD Oman leads the way

Page

31 NEW RELEASE ROUND UP What’s hot in new machinery this month in this month’s Raw Power

in getting nationals into the industry.

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Editor’s Letter

PubliSher Dominic De SouSa GrOuP COO naDeem HooD ManaGinG DireCtOr RicHaRD JuDD eDiToRiaL GrOuP eDitOr STepHen wHiTe stephen.white@cpimediagroup.com +971 55 795 8740 internatiOnal eDitOr STian oVeRDaHL stian.overdahl@cpidubai.com

Lessons need to be Learned from saudi Labour crisis

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here is estimated to be 12 million expatriates to be working in Saudi Arabia, or at least there used to be.

Official figures are currently vague as to how many people have been forced to leave the Kingdom since it introduced a crackdown on the black market for labour but current best guesses stand in the region of one million.

You don’t have to be a maths genius to realise that almost 10% of the expat workforce has flown the country before being forced to...or pay fines or, worse, find themselves in prison.

DePuty eDitOr GaVin DaViDS gavin.davids@cpimediagroup.com +971 4 440 9118 maRKeTinG & aDVeRTiSinG PubliShinG DireCtOr RaZ iSLam raz.islam@cpimediagroup.com +971 4 440 9129 COMMerCial DireCtOr micHaeL STanSFieLD michael.stansfield@cpimediagroup.com +971 4 440 9128 MarKetinG ManaGer caRoLe mccaRTHY carole.mccarthy@cpimediagroup.com +971 4 440 9157 DeSiGn art DireCtOr STeVen caSTeLLuccia steven.castelluccia@cpimediagroup.com +971 4 440 9121 SeniOr GraPhiC DeSiGner ReBecca Teece rebecca.teece@cpimediagroup.com +971 4 440 9168

In a country that is used to seeing change happen at the same rate that geologists register for the Indian sub-continent heading towards Asia the effects have been seismic.

JuniOr GraPhiC DeSiGner peRciVaL manaLaYSaY percival.manalaysay@cpimediagroup.com +971 4 440 9121

The construction industry has possibly been the hardest hit. Before the start of April’s grace period for illegal workers there were an estimated 250,000 construction contracts in motion. The 575,000 corrections to visa statuses has not been enough to stall the labour market and the reverberating aftershocks have rocked the sector.

ciRcuLaTion & pRoDucTion

Arab News published a report just as Construction Machinery Middle East went to press showing figures from the National Committee in Saudi Chambers (NCSC) that reveal that 90,000 of those 250,000 contracts had been cancelled. Presumably because they were unable to fulfill their contracted obligations.

CirCulatiOn anD DiStributiOn ManaGer RocHeLLe aLmeiDa rochelle.almeida@cpimediagroup.com +971 4 368 1670 DatabaSe anD CirCulatiOn ManaGer RaJeeSH m rajeesh.nair@cpimediagroup.com +971 4 440 9147 PrODuCtiOn ManaGer JameS p THaRian james.tharian@cpimediagroup.com +971 4 440 9146 DiGiTaL

Raed Aqeili, a member of the National Committee in Saudi Chambers, told the newspaper that the majority of the contracts belonged to small contractors. He suggested that the companies that can afford to, turn to rental companies to hire professionals that can carry out the contracting work.

The cost of this will surely be higher prices in terms of contracts and a subsequent shrinking in the number of contractors in the market.

The goal of this move has been to reduce wastage in the Saudi labour force as well as accelerating the Nitaqat programme. Only the very cynical could argue against both those aims. I worry that the extension of the grace period to November has come too late – and in hindsight may have been a more reasonable deadline to ensure the continuity of construction in the market.

However we also must look at how we conduct our own affairs, and as the construction industry bears the brunt of these changes, smaller contractors must once again realise that they will pay the price in the short term for long term neglect of their role as responsible employers.

www.constructionmachineryme.com DiGital ServiCeS ManaGer TRiSTan TRoY maaGma Web DevelOPer JoeL aZcuna online@cpidubai.com +971 4 440 9100 puBLiSHeD BY

Registered at impZ po Box 13700 Dubai, uae Tel: +971 4 440 9100 Fax: +971 4 447 2409 pRinTeD BY printwell printing press LLc © copyright 2013 cpi all rights reserved while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

Stephen White, Group Editor, CMME

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nOW Online You can now catch the online edition every month at: www.constructionmachineryme.com

News Round-Up

NEWS New machines, new offices, new projects, new initiatives – we look around the region at what’s new this month.

LIEBHERR GoES FoR A SWIM An MK 88 mobile construction crane operated by Hubert Wiemann GmbH & Co. Autokrane KG, Dortmund helping refurbishment work on the swimming pool complex at “Badewelt Sinsheim” in Germany.

NFT’s Al ZAhlAwi: 100 sellers For oNe crANe

NFT’s managing partner Nabil Al Zahlawi says that changes to the crane market means that rental now makes up 85% of the company’s business.

In an interview with Zawya, Al Zahlawi said that the Abu Dhabi-based crane specialist has become much more international in its approach following the real estate bubble of 2008 and 2009. “[After] the crash, we changed our business model from Dubai to Asia and moved a big part of our cranes business to India, Taiwan, Hong Kong and Korea.

This is the third year that we [have been] renting equipment and the rest of the industry is also doing the same,” he said.

Al Zahlwai added: “There was a time

when Dubai was the crane capital of the world and home to almost 25% of the world’s cranes.

[Around] 85% of our market is from the rental business.

During the boom time, there were 10 customers for one machine. Now there are 100 sellers for one machine. It is a very tough market.”

According to Al Zahlawi, NFT remains the biggest player in the region. He says that NFT accounts for more than over 60% of the cranes market in the Middle East.

“Based on our market studies, we plan to have more branches covering the entire region, which in turn will improve our ability to understand and meet the changing global market requirements,” he said. “Additionally, we plan to expand geographically to other markets like India, [countries in the] Far East, Canada and other [locations].

Volvo Trucks and Mack Trucks Centers open in Iraq ZamZam General partnership in Iraq is paying dividends as it heads for 30% growth

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he first truck center was inaugurated on 29 May in Baghdad at an event hosted by the ZamZam Spring General Trading Company. The opening event was attended by the Swedish Ambassador in Iraq, His Excellency Joergen Lindstroem, the president of ZamZam, Bagher Kazem,

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Stefan Soenchen, business team director Iraq – Volvo Group Trucks Middle East, as well as VIP customers and members of the government.

The Baghdad Truck Center is one of the most modern facilities in Middle East, says Volvo. It was built, equipped and will operate according to European standards with a special focus on environmental issues. The facilities include an Importer Central Warehouse, a five-bay workshop, a body repair workshop, a paint shop and a technical training centre.

A second truck centre was inaugurated two days later in Basra, the location of the main Iraqi oil reserves and therefore one of Volvo Trucks’ and Mack Trucks’ strategic locations in the country.

Volvo Trucks and Mack Trucks expansion into new markets are crucial elements for Volvo Group Trucks Middle East’s plans to grow by 30% in 2015. With

the openings of the Baghdad and Basra centres, there are now 48 truck centres across the region where customers may now benefit from Volvo Trucks and Mack Trucks tailor made service offers.

As part of the A.B. Volvo Group, Volvo Trucks is the second-largest producer of heavy-duty trucks and transport solutions within the entire truck industry.

Volvo Trucks counts more than 2300 dealerships and workshops in more than 140 countries all over the world. Mack Trucks is another A.B. Volvo Group company producing vehicles with a worldwide reputation for strength and durability.

Volvo Trucks, Renault Trucks, UD Trucks, Mack Trucks and Eicher are now part of the Volvo Group Trucks and all falling under the umbrella of A.B Volvo Group. Volvo Group Trucks Middle East -with its Head Quarter based in Dubai- is a key player in the region with strong ambitious plans for the near future.

RegistRation foR Dubai ReaDy-mix concRete companies

Company intelligenCe Jeddah’s Municipality has one of Saudi arabia’s worst records in terms of tender processes and project delivery, a report compiled by the ministry of municipal and Rural affairs has claimed. the report looked at the perforMances of Municipalities and secretariats across the country for the 2011/2012 fiscal year, according to sources quoted by local media. Jeddah municipality is one of the four worst performing municipalities in the country, sources added, but did not specify which other administrations had also underperformed. the distributor of foton coMMercial vehicles in oMan, Zubair autoMotive Group, has announced special pricing for Ramadan on all its models from July 9 to august 31, 2013. Zubair sells four models in the Sultanate, the tunland pick-up, the View C passenger van and the aumark and auman light and medium commercial trucks, and has been the distributor of Foton since april 2012.

With summer temperatures testing the the durability of the tyres fitted to heavy vehicles, yokohama supplier, JuMa al MaJid Group has launched its tyre clinic caMpaiGn across its uae retail network. Visitors can avail a “Free tire Check-Up” receiving advice on the tyre’s condition, maintenance, one-time nitrogen filling, one rotation and tyre balancing service up to 8,000 km free-of-charge.

Dubai Municipality (DM) has announced that all ready mix concrete suppliers operating in the Emirate need to register with the Municipality, as part of an administrative decision to monitor ready-mix concrete companies and on site mixing units to ensure safety and quality of work in the construction work sector.

A joint team from Buildings Department and Dubai Central Laboratory (DCL) has been formed to take care of the registration, monitoring and issuing conformity certificate for the ready-mix concrete companies and on site mixing units, said Eng Yusuf Abdullah

Al Marzooqi, acting director of Buildings Department at DM. Contracting companies and engineering consulting offices are being urged not to use the ready-mix concrete in any construction site unless it was supplied by a registered firm with Dubai Municipality along with conformity certificate or mark for the factory or the mixing unit.

“The registered and approved companies are listed on the DM website. A manual that includes the instructions and regulations is also available online,” said Marzooqi.

“The standard specification of the ready-mix concrete has been adopted in coordination with the DCL. A circular on this regard has been sent to all

relevant parties in addition to the publication of the decision in the DM website.”

“Companies are given time to complete the formalities for registration until 31 December 2013. The time to get the conformity certificate or mark has been extended to 31 December 2014, provided that the applications should be submitted before 31 August 2013,” he added.

The registration announcement followed a forum for concrete companies held by the DM, part of a drive to help ready-mix concrete manufacturers improve services.

Presentations followed a question and answer session where companies were awarded with certificates and mementos.

tendeR UpdateS

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sharJah transport has completed the second phase of designing the new central transport station, which will be located in the union square area adjacent to the kinG faisal Mosque in sharJah city, it has been announced. estimated to cost a total of $4.08 Million, the station is still in its design phase. it will cover 19,000sqM and will provide a range of services for public transport, said abdullah MohaMMed al Zari, director General of sharJah transport.

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ashGhal, the qatari public works authority, has awarded contracts worth more than $549.2 Million for the construction of 44 new schools, including 15 kinderGartens, across the country.

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the tender for the construction of package 2 at the oMan convention & exhibition centre precinct, which is being developed by omran, has been awarded to carillion alawi llc, as approved by the GovernMent tender board. worth a total of $202.6 Million, the package will include the construction of exhibition halls, car park facilities and the district cooling plant.

Saudi leaSing market could be aS much aS $10 billion the head of a major financing company has estimated that the rental of heavy plant, machinery, medical equipment, and contracting and constructing equipment could be worth as much as $10 billion in an interview with arab news.

David Hunt, ceo of gulf installments said the popularity of the firm’s shariah-compliant finance packages are being boosted by an sme sector hungry for credit to fund business growth. “this expansion is in line with the company’s commitment to make its shariah-compliant credit solutions available to smes across the Kingdom,” Hunt told the newspaper. “although saudi smes account for 90 percent of saudi businesses and 24.7 percent of total employment, they represent only 2 percent of the saudi banks’ lending market. With over 500,000 smes

in the Kingdom, many of which are underserved, credit demand outpaces supply.”

Describing the Kingdom’s installment and leasing market as “very huge” he estimated that demand could be worth $1.3 billion to $10 billion. gulf installments is operating in the Kingdom with $26.6 million in capital – it is a member of saudi credit bureau (simaH) and follows strict rules of saudi arabian monetary agency (sama) – and was established in 2012 by sHuaa capital following “the success of shuaa’s subsidiary gulf finance corporation in the uae”.

Hunt revealed that within the first three months of operations, gulf installments managed 30 deals which ranged from $80,000 to $2.13 million – the average deal being between $260,000 to $800,000.

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News Round-Up

EmiratEs transport to supply vEhiclEs to Etihad rail Emirates Transport has signed a MoU to provide integrated vehicle and maintenance services, in addition to security services, for Etihad Rail sites.

According to the UAE’s national press agency WAM, Etihad Rail – the developer and operator of the UAE’s national railway network – signed a MoU with Emirates General Transport and Services Corporation (Emirates Transport/ET) in July.

The MoU offers Etihad Rail the benefit of ET’s integrated vehicle and maintenance services, in addition to security services along Etihad Rail sites.

Signed by Dr Nasser Al Mansoori, CEO of Etihad Rail, and Mohammed Abdullah Al Jarman, general manager of ET, the MoU will support Etihad Rail’s commitment to provide customers with a seamless experience when transporting their goods on the railway.

With both entities being part of the UAE’s burgeoning transportation industry, the combination of Etihad Rail’s extensive network with ET’s established presence in the UAE signifies a natural alignment, where two different modes of transport will be enabled to complement one another. As part of the agreement, ET may provide container leasing; cleaning and courier services; security services; and, the leasing, maintenance and recovery of vehicles.

“As the developer and operator of the UAE’s national railway network, Etihad Rail is collaborating with different companies across a range of industries to ensure that we provide our customers with the best transport solutions, which in turn will facilitate growth opportunities within these sectors,” said Dr Al Mansoori.

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“ET has a strong track record in providing numerous governments and private entities with flexible road transport options, and this agreement is in line with Etihad Rail’s commitment to offer customers a modern and integrated rail network.

We look forward to working together as the railway continues to develop.”

“As a provider of transport solutions in the UAE, ET’s partnership with Etihad Rail – who will soon introduce a new transport culture to the UAE – marks the synchronisation of efforts to diversify our nation’s economy and contribute to social development,” said Al Jarman.

Al Jarman said that ET is: “delighted to play a role in such a strategic project, and to explore future collaboration opportunities as the project progresses, including on the network’s passenger services and at the GCC level.”

The collaboration between the two entities will see ET provide the Etihad Rail project with integrated vehicle and maintenance services.

Discussing ET’s three decades of experience in the industry, Al Jarman highlighted the distinguished skills of the technical staff and the quality services offered in line with international best practices, all of which have led to ET’s success with many public and private entities in the UAE. Upon completion, the Etihad Rail network – which will cater to both freight and passengers – will span approximately 1,200km across the Emirates. It will connect urban and peripheral communities, facilitate trade, open up communication channels and foster economic development.

BAHRAIN TOPS FOR HYUNDAI HI Hyundai HI had its highest market share globally for 2012 in Bahrain with dealer Motorcity receiving the ‘Best market share award’.

Ramadan speed reminder after Arabian Ranches death Drivers are being urged to use caution and reduce speed after a man was killed and another seriously injured on the first day of Ramadan in Dubai.

ME BOAST FOR CTE CTE has seen increasing interest in its products, from the Middle East.

Last year it won a deal to sell 266 AWPs to the municipal authority in Northern Iraq.

DAM uniTED 8t Linden Comansa 10LC140 cranes work on a 123m X 505m doublecurvature dam in Portugal.

According to Dubai Police, an Asian man was killed in a traffic accident close to the road construction works in the Arabian Ranches area of Dubai. A second man is in hospital after sustained severe injuries after being run over in the Al Ghusais area at 1.30pm.

Local media reported that Colonel Saif Muhair Al Mazroui,

acting director of Dubai Police’s Traffic Department, has urged people to be careful while driving during Ramadan.

Colonel Al Mazouri said in the past the roads had turned into a battleground with people rushing to get home for iftar. With Ramadan taking place during the July and August – the two hottest months of the year where temperatures regularly come close to 50oC – he advised that drivers reduce speed as accidents tend to occur when people were hungry and their blood sugar was low.

News Round-Up

Ksa firms pLan Labour renting scheme to resoLve buiLding crisis

Cat forms allianCe to offer operator fatigue monitoring Caterpillar Global Mining has formed an alliance agreement with an Australian company to deliver and support operator fatigue monitoring technology, which will be rolled out through Cat dealers, phased in starting with dealers in key mining regions.

The Australian company, Seeing Machines, has developed fatigue monitoring systems using patented eye and head tracking technology to detect operator fatigue and distraction and to alert the mine controller and the machine operator.

Seeing Machines’ Driver Safety System (DSS), a commercial system for mining trucks, currently is working on more than 20 mine sites and 1,500 vehicles.

The system continuously measures operator eye and eyelid behavior to determine the onset of fatigue and micro sleeps and delivers realtime detection and alerts, yet the operator is not required to wear any special equipment.

Cat dealers are to be the exclusive distribution channel to the mining industry for the Seeing Machines technology.

“The alliance with Seeing Machines is a natural progression of Caterpillar Global Mining’s work to mitigate fatigue issues in mining activities,” said Al Frese, general manager of solutions, technology and marketing for Caterpillar Global Mining.

“For the past ten years, Caterpillar Global Mining has been raising awareness and industry understanding of the implications of 24/7 shift work on equipment operator performance, distraction

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and fatigue through industry training programmes, such as Managing a Mining Lifestyle, and through partnerships with industry organizations and research universities.”

The alliance agreement also looks forward to collaboration in future product development.

“We look forward to growing the use of our fatigue monitoring systems and to working jointly with Caterpillar Global Mining to integrate our technology into Cat MineStar System mine management functions and to develop expanded capabilities for this technology,” said Terry Winters, chairman of Seeing Machines.

Liebherr saw Middle East recovery in 2012…but is behind RoW In line with across the board improvement at the company, the newly published online results for Liebherr reveal that the German manufacturer experienced growth in the Middle East and Africa regions in 2012.

The Middle East saw a two-year decline halted with an increase in revenue from $373 million in 2011 to $396 million in 2012.

The family-owned business also said its African sales increased by $604 million to $760 million.

It is the second year in a row that Africa has outstripped the Middle East market which is now the weakest region in terms of sales.

Western Europe remains its strongest source of revenue and sales increased from $605 million in 2011 to $761 million in 2012. Total sales for the Liebherr Group were $1.16 billion up from $1.07 billion in 2012.

Three Saudi Arabian companies, comprising of 13 recruitment firms, plan to hire out workers on a short term basis to contractors in the Kingdom, in a bid to overcome the ‘building crisis’ affecting the country.

Recruitment companies will supply workers for up to a year to construction companies looking to complete their projects, while also supplying workers to other companies that need short term labour, industry experts explained to Arab News.

The move will bring relief to a Saudi construction industry that is struggling with a shortage of labour.

The launch of the hiring – out program will take place at the end of the much discussed amnesty period for workers on November 3, 2013. Abdullah Radwan, chairman of the contractors

committee at the Jeddah Chamber of Commerce and Industry (JCCI), said the program would help resolve labor shortages.

“There are three recruitment firms that have been licensed to launch labor rental programs,” Radwan told Arab News.

He said the program will provide workers on short-term (contracts) without having to transfer their sponsorships. Awad Al-Zahrani, a member of the recruitment committee at the JCCI, said a number of recruitment companies were preparing training programs for workers.

The plan is aimed at compensating for the departure of thousands of expatriate construction workers over the past three months, said an industry expert.

Liugong seLLing to operators LiuGong has embarked on a strategy in Europe to convince machine operators of the desirability of the LiuGong product, acknowledging the “universal acceptance” that while operators are not responsible for spending the money or signing the paperwork, their perception and decision is vital in selling machinery.

LiuGong’s European dealers are taking a new approach to their sales method, allowing users a flexible hire use to try out the equipment, before making a purchasing decision. The intention

is to overcome any misgivings about the brand by buyers, who may be interested in the value proposition based on machine price.

In the Netherlands, the local dealer made a number of sales in this way, including winning over a operator, André Keijzer, who was sceptical when the owner agreed a deal on a LiuGong 925LC excavator based on price, having previously refused to continue using another brand.

Keijzer was given the final decision as to whether to purchase or return the machine.

He approved it, saying: “you cannot compare LiuGong to other Chinese brands; they are not at all alike.”

It was a view shared by the plant manager at construction company Van Dijk, Willem Jan van Werven.

“Even though we know that Chinese brands will be future leaders in the construction industry, we were a little uncertain about what LiuGong could offer. We did a lot of research online before committing to the purchase and found that LiuGong is a major player.”

News Analysis

Is labour sharing the answer?

Saudi Arabia’s controversial ‘Nitaqat’ scheme has caused divisions across the labour market in Saudi Arabia and beyond. Gavin Davids investigates the programme to gauge its impact.

E

arlier this year, Saudi Arabia announced that it planned to implement a ‘labour sharing’ scheme to resolve a building crisis of its own making. The scheme will see three companies, made up of 13 recruitment firms, hiring out workers on a short term basis to contractors in the Kingdom.

This is the latest attempt by the Kingdom to resolve the chronic unemployment problem that has plagued the country for a number of years and resulted in numerous efforts by the government to implement different ‘Saudisation’ measures.

However, previous attempts have failed to produce the desired results, and so the infamous ‘Nitaqat’ measure was introduced by the Saudi Ministry of Labour in 2011.

This system will have a far reaching effect on expatriates working in the Kingdom, specifically the huge migrant labour force working on numerous construction projects across the country. The scheme will see the

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labour market divided into 41 activities, with each activity divided in five sizes (Giant, Large, Medium, Small and Very Small), to have a total of 205 categories, explains Hany Kenawi, a consultant with the legal firm Meyer-Reumann & Partners, in a report entitled ‘Nitaqat: the New Localisation System for Jobs in the Kingdom of Saudi Arabia’.

“The performance of the establishment in the localisation of the jobs is to be evaluated compared with the similar establishment’s activity and size in order to have fair standard for the evaluation,” he explains further.

“After the evaluation, Nitaqat classifies these establishments into ranges (Excellent, Green, Yellow and Red) based on the ratio of the citizens working in the establishment.

The Excellent and Green range, which are the ranges with the highest localization ratios, will be rewarded, while the system deals firmly with the Red range, which is the range with the lowest localisation ratio and gives more time for

KSA firmS plAn lAbour renting Scheme to reSolve building criSiS Three Saudi Arabian companies, comprising of 13 recruitment firms, plan to hire out workers on a short term basis to contractors in the Kingdom, in a bid to overcome the ‘building crisis’ affecting the country.

Recruitment companies will supply workers for up to a year to construction companies looking to complete their projects, while also supplying workers to other companies that need short term labour, industry experts explained to Arab News.

The move will bring relief to a Saudi construction industry that is struggling with a shortage of labour. The launch of the hiring–out programme will take place at the end of the much discussed amnesty period for workers on November 3, 2013.

Abdullah Radwan, chairman of the contractors committee at the Jeddah Chamber of Commerce and Industry (JCCI), said the program would help resolve labour shortages.

“There are three recruitment firms that have been licensed to launch labour rental programmes,” Radwan told Arab News.

He said the programme will provide workers on short-term (contracts) without having to transfer their sponsorships. Awad Al-Zahrani, a member of the recruitment committee at the JCCI, said a number of recruitment companies were preparing training programs for workers.

The plan is aimed at compensating for the departure of thousands of expatriate construction workers over the past three months, said an industry expert.

Recruitment companies will also provide trained and qualified workers as needed.

The kingdom launched a program in late 2011 demanding that companies hire Saudi nationals along with expats.

The required number of Saudi employees depends on a company’s size and its total number of workers. Fines and other penalties, including the withdrawal of work permits, have been set to ensure compliance.

the Yellow range to adjust their positions, being the medium range.”

“The motive of applying the Nitaqat system is to make the appointment of Saudi citizens represent a competitive advantage for the establishments in the Kingdom,” Kenawi adds.

The fallout from this has resulted in thousands of workers being returned to their parent nations, which in turn has prompted severe criticism from political parties in those countries. In India, both ruling ministers and opposition party members have united to criticise the measure, warning that the situation could become ‘unmanageable’ due to the number of workers involved and demanding that Saudi Arabia halt its implementation.

At present, some 75,000 Indian workers are set to return home, a report by the Observer Research Foundation in Delhi said, but warned that those numbers could go up rapidly. The deadline for expatriates who are in Saudi Arabia without valid paperwork was July 3, 2013. Once the grace period ends, those workers without valid paperwork will be heavily penalised, or even jailed.

Indian External Affairs Minister, Salman Khurshid, said that “the issue is that we have three months of grace period during which whatever needs to be done has to be done and the numbers are very large.”

A further problem is the rehabilitation of these workers in their home countries, he said, adding that the Indian government was concerned with the pace of Saudi authorities who were issuing 500 exit permits per day. While the Nitaqat law has achieved some success in its early stages, there remains concerns over its ability to generate jobs for the Saudi population in the long term, in addition to a number of other issues.

Local contractors have already blamed the programme for a rise in construction costs,

while also pointing out that their wage costs have risen by as much as 15%, a reflection of the high cost of Saudi manpower, as compared to foreign nationals. Contractors have said that they have not submitted bids for new works because of the uncertainty over the legal status of their foreign construction workers.

Abdullah Alwan, CEO of SMT Properties in the Kingdom, said that many companies were afraid their workers would be arrested or deported.

“The problem lies with the sudden manner in which the decision was introduced, not the decision itself,” he explained.

Alwan urged the government to provide incentives for the construction industry, because of the difficulty of finding Saudi construction workers.

Bander Al Twaim, a private company owner, added that a number of projects in the Kingdom have had to be stopped completely because property developers have been employing workers not under their sponsorship, which has caused massive losses and a rise in costs for developers, particularly with projects that are close to completion.

He did concede that it was clear that the government was serious about reforming the country’s labour market, given that no industry had been spared from having to comply with the Nitaqat programme. For better or for worse, the controversial programme looks to be here to stay for Saudi Arabia then, despite the many questions that remain about its validity and effectiveness. While the law may seem to be aggressive and negative by foreign companies who wish to operate in a freer labour market, the need to address the growing unemployment in the Kingdom remains paramount.

It’s still too early to accurately judge the impact of this law on the economy, but it is clear that it is already changing the way companies and business approach operations in KSA.

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16-20 February 2014

DAMMAM

Dhahran International Exhibition Center, Dammam, Kingdom of Saudi Arabia Show timings: 9:30-12:00 and 16:00-22:00

The Construction Machinery Show 2014 is the largest heavy construction machinery event in the region, showcasing a wide variety of products ranging from heavy equipment to machinery, from lighting to generators as well as dealers and service providers.

action via its programme of live demonstrations and the largest ever showcase of its type in the Middle East.

The event will provide an invaluable platform for customers in the Arab world bringing together manufacturers, distributors and buyers.

In 2014, the Construction Machinery Show 2014 is teaming up with leading Saudi exhibition organiser, Dhahran International Exhibitions Center (DIEC). This year’s show will run in conjunction with the popular BUILDEX event, now in its 16th year.

The Construction Machinery Show 2014 is also the only event in the region where buyers can see a huge range of equipment in

Both events will attract worldwide industry experts, investors and buyers to the largest tradeshow in the Eastern Province.

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Expert Opinion

The long road for Chinese manufacturers Chinese construction machinery manufacturers face a bright future, but also some obstacles.

I

Stian Overdahl, internatiOnal editOr, CMMe

t was on a site visit to a job site in Saudi Arabia where I was struck by evidence of one of the ‘legacy problems’ for Chinese construction machinery manufacturers selling equipment in the Gulf.

‘Struck’ may be too strong a word – it was more evidence that grated on my eardrums and vibrated my whole body.

The job site consisted of two tall towers alongside one another, with the concrete shells one day to be transformed into luxury hotels in Jeddah. On the north tower the construction hoist was built by an Italian manufacturer, circa – and here I’m guessing – 2007. The ride was smooth and unremarkable.

On the south tower the construction hoist was of a similar age, but built by a Chinese manufacturer, and the ride was less smooth. The hoist made shrieking sounds of metal on metal as it made its way up the building, the effect of the motor and chain created a vibrating resonance in the cage, and it was a bumpy ride. While it didn’t feel unsafe, there was certainly a measure of relief as I stepped out onto the ground at the bottom. Now, in the time since that hoist was built, a lot of things have changed in the

world. For a start, it’s not as easy to sell construction equipment, long gone is the contractor attitude of ‘If you have it in stock we will buy it’.

In that time too, Chinese manufacturers have become increasingly internationally focused, a strategy that includes improved product engineering for specific market regions, as well as greater emphasis on spare parts, service support and aftersales measures than were in place in 2007. And there has been a noticeable appreciation of the all-important role that the dealers play, especially here in the Gulf.

In the past six or so months there has been signs of significant efforts

by Chinese companies to penetrate deeper into the Middle East markets, including expanding their market share, and in certain cases drawing attention to their new focus with specific branding, such as Zoomlion’s ‘New Image, New Era’.

These efforts are backed by greater confidence in their latest products’ quality, as well as a more familiarity with the style of business that is successful in the local markets, and in some cases the local subsidiaries boast staff who have worked in the Middle East for a number of years. Of course cost is the main competitive

“DESpITE ThESE OBSTACLES, ThE STArS CErTAINLy SEEM WELL-ALIGNED FOr ThE ChINESE.”

advantage of the Chinese products, yet the job is to convince buyers that they’re also up to the task.

Nevertheless, there are several problems confronting the Chinese manufacturers in the GCC For some brands there are lingering legacies of damage to their reputation by machines sold during the boom years that were perhaps not as geared up to perform in the region as they should have been. Likewise, the shift in dynamics from the sellers’ market of 2005-2008, to the more-cautious buyers’ market of the present, has also resulted in changes in the dealership/distributor landscape.

Some of the trading-company sellers of equipment have dropped out of the market, or are concentrating on specific – more profitable – product lines. Some of the newer entrants to the market, including Chinese manufacturers, found themselves with a partner who was no longer as enthusiastic about selling machinery as they were. Furthermore, lessestablished Chinese firms are faced with the ‘green fields’ problem, meaning that they need to make significant investments to grow their capacities and service offerings, since they are in some cases beginning from scratch, as compared with companies that operated in the region for perhaps decades, and who already have in place significant infrastructure.

But despite these obstacles, the stars certainly seem well-aligned for the Chinese. Some already benefit from long-standing distribution agreements with local partners, that has seen them grow significant market share in local markets; while the turbulence of previous years has ‘cleared the decks’, and means that only the more serious dealerships are still in the business. Improved product engineering and aftermarket support will also greatly enhance job site performance. And of course – as everyone knows – price goes a long way in convincing buyers.

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Heavy Hitters

CASE ON TOUR

Construction Machinery Middle East talks to Franco Invernizzi, senior director, Africa and Middle East, as the team at CNH enjoy a whistlestop tour of the GCC.

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maChinES FoR thE middLE EaSt At Bauma New Holland showcased the new E230C SR, E260C SR and E160C Blade Runner, which complete its crawler excavator range. Featuring New Holland’s unique iNDr system, these short radius models combine productivity with the ability to work in the tight spaces, making them ideal for urban job sites.

Also introduced at the show were the mid-size crawler excavators E75C SR and E85C MSR. The company’s C Series dozers has been extended with a new model at the low end of the line that now comprises three models ranging from 13 to 20 tonnes. Redesigned from the ground up, the

C

NH, the Fiat-owned fused company of Case New Holland, has set itself the ambitious target of breaking into the circle of dominant forces in earthmoving. Pitching at price points lower than competitors such as Caterpillar and Volvo on the heavy side, it is also hopeful it can make ground with its compact range against the ubiquitous Bobcat.

While the ending of the partnership with Kobelco may make it easier for the marketing executive who designs the corporate business cards at Fiat Industrial, CNH still appears in the region as two separate ranges.

Small wonder that when the company set-out on a tour of the GCC, which included half a dozen dealer days it had to mobilise a crack team to cover the territory. One of the men leading the assault is company executive Franco Invernizzi, senior director, Africa and Middle East, Case Construction Equipment. We meet at the opening of the company’s Saudi Arabian dealer Roots Group’s new sales office in the capital Riyadh.

new C Series makes a complete break from the previous generation.

Other innovations included the new L230 skid-steer loader and C238 compact track loader that maintain the compact dimensions of their predecessors while delivering more rated operating capacity, more horse power, more torque

and more hydraulic power.

Meanwhile, Case introduced a new threemodel range of M Series dozers. This expanded line-up includes models with operating weights of 13-20T, each delivering improved drawbar pull, reduced exhaust and noise. and automated control systems.

Case and New Holland equipment was out in force at series of open day events held in Abu Dhabi (where these shots were taken), Dubai, Bahrain, Oman as well as at the opening of a new Roots Group office in Riyadh.

Expanding in thE Kingdom “This is the second opening in Saudi Arabia (for Roots Group) and it is very important,” he begins.

“We are really excited as things are going pretty well in terms of market share and the brand.”

Invernizzi is referring to the progress Roots Group has made in the Kingdom since it signalled its intent

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with the opening of one of the company’s largest distribution centres in the world in Jeddah at the beginning of 2012. According to Roots, sales have already perked up by 5%. A third location is on its way, he says.

“We will have another branch in Dammam opened by the end of the last quarter,” he adds.

The relationship with Roots Group has been a full partnership in the Kingdom with both parties contributing to building a physical presence in a market CNH was once happy to leave to its previous dealership.

“We have both made an investment,” he explains.

“Not only in establishing the two branches but also in building confidence, training people, and offices.”

Construction Machinery Middle East first joined the tour at one of the many dealer days it hosted, with Al Shirawi in Abu Dhabi, two weeks prior to the Riyadh opening. While some open days may only involve a static show, that event included a full demonstration of its range including excavators, loaders and compacts.

With Hakan Ilhan, director of marketing for Case Construction and New Holland in the Middle East and Turkey, acting as ringmaster and a bevvy of engineers and technicians from CNH on hand to talk to customers, it is clear that the company is willing to push hard to gain its share in the market.

He explains why it is important for the company to tackle the region at this time and the purpose of a tour.

“At the end of the day, the best way to do this is to get the right people together from all over the world.

So we built a team, from Europe and other parts – and the result has been good.”

Coming in a year with traditional European showcase Bauma sitting in the middle, it may seem like the tour was organised to stir up interest in CNH’s significant presence at the event. Invernizzi however sees the purpose of his team’s support of dealers as a very different promotional exercise.

“Bauma is important, sure, but not for the customer. All the dealers will come to Bauma, but not

all the customers, so we wanted to visit them. This kind of event at Al Shirawi is about us proceeding on our track and our plan.”

Much is made about the differences between Saudi’s major cities and spending time in Riyadh has allowed him to compare with his previous experience of Jeddah, which is one of its major hubs for the Middle East and Africa.

“I had a totally different idea of Riyadh (before I arrived) and it is totally different from Jeddah,” he remarks. “Jeddah is important for us, but I was told that a high share of the market is here.”

Boasting a “value proposition” and given the proximity of Jeddah to Africa it would seem logical that it could also help plug CNH into the neighbouring continent’s key markets. However for the moment it is serving primarily the Saudi market. Invernizzi explains how it does aim to service the region.

“We have three different hubs,” he explains. “For the Middle East we have Istanbul and in the future Dubai. For Africa we have two hubs. one in North Africa in Algeria to serve developing countries there.

And the other is in South Africa.”

Based in Turin, Italy (“do you know whether I will be able to watch football in Riyadh?” The AC Milan fan asks at one point), Invernizzi’s role demands he spends time cross the enormous continent. How much travelling does he do?

“Next question,” he jests. “It’s crazy but it’s exciting especially in South Africa. People think that South Africa is just about mining, but it’s not like that.

Mining can also be complicated.”

The CNH tour is due to move onto Bahrain when we talk, Invernizzi has other plans. “Yesterday I was in Jeddah, after here I go to South Africa,” he pauses.

“My wife is probably missing me!”

“FoR THE MIDDlE EAST WE HAvE ISTANBul AND IN THE FuTuRE DuBAI. FoR AFRICA WE HAvE TWo HuBS. IN AlGERIA AND SouTH AFRICA.” August 2013

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Special Interview

Can ManitowoC stop sany?

Sany is being investigated for patent infringement of Manitowoc’s revolutionary VPC technology for crawler cranes, as well as theft of trade secrets, through its recruitment of engineer John Lanning, Stian Overdahl writes.

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I

“MAnITowoC IS workIng on AT LeAST Two

SMALLer CrAwLerS ThAT wILL UTILISe TrAnSforMABLe VPC, ALLowIng The CrAneS To Be SeT UP In CoMPLeTeLy DIfferenT ConfIgUrATIonS, InCreASIng fLexIBILITy on JoB SITeS.”

t may sound like something out of a corporate espionage whodunit, the case of an unscrupulous high-ranking engineer and his trade secrets lured away to a rival company, who subsequently are able to bring the product to market even before the company itself who developed it is able.

But at least that is what Manitowoc alleges is the case, with former-employee John M Lanning playing the role of the engineer, Sany the rival company, and the SCC8500 crawler crane the product bought to market, for which Sany now faces a patent infringement investigation by the US International Trade Commission, as well as a federal lawsuit filed

by Manitowoc in Delaware, to be tried by jury.

Ultimately Manitowoc is seeking the banning of the importation of the SCC8500 and components into the United States, destruction of all existing models in Sany’s possession, and awarding of damages (in triple) for loss of market share and sales, as well as being awarded its legal fees and costs.

The case revolves around the variable position counterweight (VPC) technology, which Manitowoc holds two patents for, and which was first introduced on its super-size crawler the ‘31000’ at Conexpo in 2008, which has a maximum lift capacity of 2,300t.

The VPC system allows the counterweight to move backwards from the centre of the crane, increasing the load moment for heavy lifts without the use of extra weights, as well as being moved to the centre of the crane when it is not under load, rather than stacking extra weights at the front to balance it.

The VPC is connected solely to the carbody of the crane, floating, which reduces the amount of ground preparation needed, and can allow the crane to crawl when carrying a heavy load, problematic when using a weight trailer.

And while the VPC has been seen on Manitowoc’s largest lattice boom crawler, the court documents reveal that the company is working on at least two smaller crawlers, which will utilise a version of the technology called transformable VPC, allowing the cranes to be set up in completely different configurations, also reconfiguring the VPC system in each case, for greater job flexibility and multipurpose utilisation.

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Special Interview

2008 Year that Manitowoc began working on transformable VPC

499t Max lift weight of Sany’s SCC8500 crawler crane

ImItatIon less than flatterIng Copying has long been a part of the construction machinery industry, and the major machinery shows are notable for their opportunity to compare new models, and speculate on any similarities in design.

Also noticeable are

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‘equipment spies’, plain-clothed engineers that can be observed making rigorous and detailed notes about minor features, such as the width and placement of wheel nuts, as well as taking photographs. For a company that wants to

make an extensive study of a machine, the general rule of thumb it that the smaller it is the easier.

For example, a company can rent a machine in Europe, ship it to their factory, completely disassemble it and study the components and

structural welds, before reassembling it and returning it to the rental company. Of course, this practice would only be suitable for smaller machines, and not for larger cranes, or – of course – for unreleased products.

Manitowoc says that it has been working on the transformable VPC technology since 2008, and still hasn’t bought a product to market, perhaps since the majority of its focus in that time was on the development of the 31000, built to supply anticipated demand in the burgeoning nuclear power plant construction sector.

Meanwhile the figure of John Lanning emerges as the significant player in the legal drama. Lanning is listed as an inventor on one of the two patents for VPC Manitowoc holds, and worked extensively on the patenting processes and overall design, but he was poached by Sany and began working for the company in January 2010, as its head of global product development for crawler cranes.

Sany provocatively hung a giant poster of Lanning wearing a Sany-logo hat at their booth at Conexpo in 2011, over which a news report at the time noted Manitowoc was “not smiling”. And while companyhopping is not uncommon in the construction equipment industry, Manitowoc alleges that Sany specifically “targeted” Lanning and offered him a “substantial salary increase”, knowing him to be in possession of knowledge of the VPC and transformable VPC technologies, as well as trade secrets about how the transformable VPC could be used commercially to design a crane for current market requirements.

Sany America has launched a number of crawler cranes for the North American markets, but it is the 499 tonne (550 US ton) capacity SCC8500 that has provoked the legal case.

The crawler employs what Sany calls an Auto Counterbalance Equalization (ACE) System, which uses hydraulic cylinders to adjust the position of the counterweights. This can also be supplemented with the ‘Ultra Lift’ counterweight tray extension, for placement of additional counterweights, and with a second pair of hydraulic cylinders the counterweight beam is extendable 16m from the back of the crane.

The model was launched in the North America

Sany Heavy Industry responds In response to the allegations contained in the two filings, the president of Sany Heavy Industry, Xiang Wenbo, issued a statement denying the claims, and defending Sany’s track record of innovation.

“Sany is proud of its industry-leading crane designs and the heavy equipment products and solutions we provide for our customers,” he said.

The Sany SCC8500 crawler crane was developed from start to finish by Sany engineers, using our own ideas and our own technological innovations. We categorically reject the claims made

John Lanning spent four decades with Manitowoc before moving to Sany America in 2010 to design cranes. Sany claims that the SCC8500 was designed prior to his arrival by its own team of engineers.

by Manitowoc and stand fully behind our market-leading products. Sany will respond actively to this legal action through appropriate legal measures to protect our own intellectual property.”

A number of Chinese companies have been investigated in America for patent infringment and a Sany employee was quoted by a Chinese news portal expressing acceptance.

“It [the patent probe] is natural. The Sany Group has met the same problems encountered by many other leading Chinese companies.”

markets in March this year, and Manitowoc notes that the crane can be configured in entirely different ways, including with a travelling mast and with a lattice mast, with the VPC also transformed with the use of the Ultra Lift, and the company believes that the crane infringes on two of its patents. It also believes that trade secrets regarding the “commercial and desirable properties for such as crane”, divulged

by Lanning, were used in the design of the SCC8500.

The trade secrets included technical information, designs, strategies, as well as customer names and pricing information, and Manitowoc alleges Lanning divulged these, despite having signed a confidentiality agreement in 2008.

The confidentiality agreement was binding for at least five years, or until the knowledge became public, and in an exit interview in 2009, Larry Weyers, Manitowoc’s EVP for the Americas, warned Lanning that if he disclosed any trade secrets legal action would be taken.

Speaking at the Bauma China trade fair last November, Manitowoc Cranes president Eric Etchart noted on the issue of patent infringement by rival companies, that as a publically listed company, Manitowoc has a fiduciary duty to its shareholders to protect its intellectual properties, and the investment they represent.

And indeed the filings make clear the scale of Manitowoc’s investment in the new cranes and the VPC technology: between 2009 and 2012, the majority of the wages it paid to employees performing engineering duties in the US were attributable to the 31000 and the in-progress cranes; and for the same period the majority of materials and supplies purchased in support of development of its cranes in the US were attributable solely to the 31000.

With the arrival of the SCC8500, Manitowoc believes that in addition to patent infringement and theft of trade secrets, its vital ‘first to market’ status is lost in the transformable VPC segment, especially important due to the “revolutionary nature” of

the technology, and that Sany is “likely to capture a substantial portion of the market share that rightfully belongs to Manitowoc Cranes”. Advantages of ‘first to market’ with the transformable VPC were to have been early sales in the technology’s commercial cycle and reaching new customers while it was the only seller with the product in the market, while the impact of the SCC8500 will be price erosion for Manitowoc when it brings its new cranes to market.

The outcome for this would be damage to the crawler crane industry in America, due to the significant innovation costs borne by Manitowoc fro the development of the technologies. The company also believes there will be damage to its reputation as an innovator.

The International Trade Commission (ITC) has announced it will investigate the complaint, which would result in a sales ban of the crane if it is found to be infringing on patents. The ITC is known for moving quickly in its investigations and decisions.

And in the federal court case filed in Delaware, where Manitowoc has demanded a trial by jury, the company is seeking damages to be trebled since the patent infringement was willful, which could result in a significant financial repercussions for Sany if it loses.

Whatever the outcomes, the investigation and the court case are set to have a significant impact on the crawler crane market in North America and in the rest of the world.

“IT IS ALLEgED ThAT SANy SPECIfICALLy

‘TArgETED’ LANNINg AND offErED hIM A ‘SUBSTANTIAL SALAry INCrEASE’, kNoWINg hIM To BE IN PoSSESSIoN of kNoWLEDgE of ThE VPC AND TrANSforMABLE VPC TEChNoLogIES.” August 2013

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Special Feature

Rail, Riots and Results Brazil has been good to the construction machinery industry but last month’s protests surrounding the Confederation Cup was a reminder that not everybody is behind investment in the country.

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Mixing business with pleasure Brazil hopes to generate $1 billion in export deals during the Confederations Cup, the warm-up tournament for the 2014 World Cup, the government has said.

The government’s Brazilian Trade and Investment Promotion Agency says it is using football as a way to bring foreign and local business representatives together during the two-week tournament that begins

Saturday in Brasilia.

“We have top quality stadiums which, together with the high quality of Brazilian football and the country’s competitive and innovative companies, form a fantastic business platform,” Mauricio Borges, the agency’s president told The Associated Press.

He said foreign business executives will visit Brazilian companies

around the country and later go with their Brazilian hosts to watch Confederations Cup games.

He said a group of Japanese businessmen recently visited the wine-growing regions in southern and northeastern Brazil and will be in Brasilia on Saturday to watch Brazil play Japan in the opening game of the Confederations Cup. More than 1.000

T

businessmen from 71 countries will take part in the trade promotion programme that includes meetings with representatives of 492 Brazilian companies.

Borges said business representatives from the technology, health, construction, agriculture, machinery and quipment and service sectors were expected to be in Brazil during the Confederations Cup.

he idea of Brazil losing the right to host next year’s 2014 FIFA World Cup became a real possibility this summer after protests broke out across the country over the rising cost in the standard of living and the amount of money being spent on a sporting event when millions are still living in poverty.

Celebration of the world’s biggest sporting event has been short-lived for its citizens. One million people took to the streets as Brazil’s golden shirted football players participated in the Confederations Cup, a tournament intended as a curtain raiser.

“With regard to the World Cup, I want to clarify that the federal money spent on the stadiums is in the form of financing that will be duly repaid by the companies and governments that are exploiting these stadiums,” said Brazil’s president Dilma Rousseff. “I would never allow these funds to come out of the federal public budget or to damage priority sectors such as health and education.

“It is also imperative that I mention a very important topic that has to do with our Brazilian soul and our manners. Brazil, the only country to

have participated in every World Cup and a five-time world champion, has always been very well received everywhere,” she added.

“We must give our friends the same generous welcome we have received from them – with respect, love and joy. This is how we must treat our guests.

Football and sport are symbols of peace and peaceful coexistence among peoples. Brazil deserves to, and will, host a great World Cup.” 2014 World Cup, FIFA general secretary Jerome Valcke has terse in his response to suggestions that the tournament, which comes two years before the country hosts the Olympic Games, had been given to a country that should be upgrading its social infrastructure not its stadia.

Speaking at the FT/IFA Business of Football Summit in Rio de Janeiro, he said the $3.3 billion (a fraction of the $120 billion budget for the 2022 tournament in Qatar) price ticket was well worth spending.

“We need a big setting for the opening ceremony and the final. The rest is up to the country to provide at their discretion. FIFA is not asking countries to host the World Cup, countries are bidding for it. We issue a tender and that has requirements. We have asked for new technology to be included, that is true.

But there seems to be this feeling that when it is for the FIFA it is always bad. Building and renovating stadia and upgrading infrastructure needs large sums of money and a big workforce.”

Brazil is using the World Cup and Olympics to upgrade its essential infrastructure such as roads and rail to make its economy for efficient. It is also using the promote the country as private investment golden egg and announced plans to raise $66 billion to fund its road and rail projects. However high taxes, red tape and run-down infrastructure make Brazil an expensive place to do business.

The construction machinery industry has been one of the undoubted beneficiaries from Brazil’s spending so far. There is now a long list of companies that are using the country as a firm foundation to tackle the Latin American market.

As it searches for private money, the onus rests on the government to buy equipment. For instance, March saw it place an order for 1,000 backhoes from JCB in a deal valued at $60 million. JCB and Manitowoc have both opened facilities in the last

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Special Feature

“Therefore, some construction equipment vendors have started offering equipment such as forklifts, backhoes, and wheel loaders on a rental basis. This allows cost-driven organisations in Brazil to opt for the latest technology construction equipment at minimal cost, thereby improving their operational productivity. Therefore, the availability of construction equipment on a rental basis encourages customers to use a wide range of construction equipment.”

What Qatar can learn

year and are joined by an all-star line-up of companies in the market including: Caterpillar, CNH Global, JLG Industries, Komatsu and Volvo AB. Other companies such as Bobcat, Dynapac Compaction Equipment, Liebherr Group, Proton, Randon Construction, and Sany Group. XCMG has also invested in a $200 million manufacturing facility, “catching the opportunity of the infrastructure construction of World Cup and Olympics to expand the sales system and technical support in Brazil”.

One of the key factors contributing to this market growth is the need to reduce infrastructure construction time, says analyst Research and Markets. The Construction Equipment market in Brazil has also been witnessing an increase in the adoption of construction equipment on a rental basis. However, the increased cost of construction equipment could pose a challenge to the growth of this market.

According to an analyst from the Engineering team at Research and Markets, despite the advantages of the effective deployment of construction equipment, the high price of construction equipment hinders its adoption among small and medium-sized enterprises.

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With Brazil now less than a year away from hosting the 2014 FIFA World Cup, there is a definite sense of anxiety over whether the country is truly ready to host the event. The protests that have engulfed Brazil have shone a harsh spotlight on the problems the country faces, and will continue to face, as the World Cup approaches.

From a strictly construction point of view, there have been allegations of corruption, poor build quality and a lack of understanding of what it takes to build the stadiums and infrastructure to internationally accepted standards.

While organisers and the Brazilian government remain confident that all the issues will be ironed out ahead of the World Cup, there are valuable lessons that can be learnt from their struggles, which can be applied to Qatar as it gears up for its own considerable challenge in 2022.

Keeping that in mind, we spoke to the one man who is quite possibly, the best placed to judge both countries’ preparations in a fair and balanced manner.

Jan Schoenig is the Siemens programme manager for the 2022 Football World Cup in Qatar, and prior to his current role, was heavily involved in the preparations for the Brazilian World Cup. Furthermore, he has extensive experience in developing stadium technology, having been involved in global sporting events over the last eight years.

“THE AVAILABILITy OF EQuIPMENT ON A

RENTAL BASIS ENCOuRAGES CuSTOMERS TO uSE A WIDE RANGE OF CONSTRuCTION EQuIPMENT.”

“It’s a bit early to say, there’s still nine years to go,” he says “But all what I see is perfect. They have already established a programme office, they already have the stadiums partially assigned to architects and they even have a vision for transportation, which is going to be tendered soon.”

“I’m very optimistic that it’ll be totally different to the way things were done in both South Africa and Brazil, where things were done at the very last minute,” Schoenig says.

The advantage that Qatar has, compared to Brazil and South Africa, is that the people in charge of the World Cup have taken a long, hard look at what went wrong during the preparation process in those two countries, and have resolved not to allow the same mistakes to happen again. One of the biggest challenges facing any country while preparing for major events like the World Cup is dealing with the bureaucracy that comes from all the various sectors of government trying to work alongside each other.

Qatar will be no different, which is an unfortunate truth. The government will play a massive role in developing the stadium and assorted infrastructure, but in an effort to mitigate any confusion and hold ups, the Supreme Committee for Qatar 2022 has appointed Clifford Chance, the international law firm to be an advisor for its technical program.

Amongst its duties, the law firm will advise on the development of the main ‘iconic stadium’ for the FIFA event, which will seat more than 85,000 fans.

Richard Parris, the managing partner of Clifford Chance’s Doha office, says that the law firm’s expertise in procurement for major sporting events will allow it to assist Qatar in its preparations.

Furthermore, he adds that Clifford Chane’s ability to mobilise an international team and its experience in Doha helped it win the mandate for the event.

“We are delighted to have been appointed by the Supreme Committee on this landmark infrastructure program for the 2022 FIFA World Cup and we are excited to be working on a project of this magnitude.”

“In BRAzIL, THeY’Re STRuggLIng In A LOT OF AReAS BeCAuSe THeY BeLIeve THAT IT COuLD HAve Been DOne DIFFeRenTLY.”

“It is also a privilege to be working on a high profile project such as the Iconic Stadium which will set the benchmark for stadium development.”

Andrew Longmate, general counsel for the Supreme Committee, adds that “The 2022 FIFA World Cup is a prestigious and high profile event. It is essential that we work with suppliers who are best in class and can deliver a quality service.”

It is this attitude that gives Schoenig hope that the Qatar World Cup will be a completely different experience for him, compared to the one in Brazil.

“In Brazil, they’re struggling in a lot of areas because they believe that it could have been done differently,” he explains.

“We had a conference recently, where a contractor expressed surprise at all the FIFA requirements, and I thought ‘It is publically available! You can download it!” So there shouldn’t be any kinds of surprise!”

“He was complaining about the number of parking spaces FIFA requires, that is well stated in the booklet! This is what happens when companies that haven’t done it before (get involved), they think ‘oh it’s just another building and we’ll apply it just like we do in the shopping malls’ and go for it, and then they’re struggling with all these ‘surprises’,” he points out. And this is where he says Qatar can learn its most important lessons for its World Cup. “These two countries are very different, but from the stadium perspective, there is definitely something (the can share). They (Qatar) need to choose partners who have done it before. FIFA requirements are specific, the requirements for the World Cup are high in quality, and the reliability has to be there,” he warns.

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page 34

MInE TIME

Komatsu America corp turns to customers to design the WA1200-6 wheel loader for use in mining.

Working meets workout as cMME hits the gym to ensure your machines and team can keep on running.

page 37 GET A LIFT

Pull-up your sleeves and your entire operation will benefit.

page 40 TRAcK And STEER

A look at the benefits of using GPS tracking on site and across the region.

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New Products

Launch for ZoomLion’s Largest 5-axLe truck Why gET IT? Massive reach, alMost 100m hUGe load capacity

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Z

oomlion has launched the largest 5 axle truck crane in the world, the QY160V633.

It adopts 6-section 63m ellipse boom and 4 section 34.6m jib. It can achieve the maximum lifting height of 98.5m, and the maximum load moment of the basic boom is 5488kNm – or 1602, and the maximum load moment of the fully extended boom is 2979.2kNm. The truck features an integrated lifting capacity of 160t (higher than the industry level of product 6 bridge by more than 15% Zoomlion claims). The maximum load moment of basic boom is 560Tm with outriggers offering a maximum lifting moment 304Tm and a maximum weight of 17T. Zoomlion says it is the first domestic goose head frame construction crane which in heavy mode weighs up to 28T. Technological upgrades include a five-bridge crane chassis in lower travel weight.

The truck crane has been engineered to improve mobility, lower operating costs and maintenance costs. There has been a comprehensive upgrade

of control actions, behaviour, operating speed, comfort and the perfect balance of micro-mobility as well. Active and passive safety systems have also been imporved to ensure product safety, personnel safety and construction safety. Among other attributes, Zoomlion says the truck crane boasts a telescopic boom cylinder latch mechanism and “revolutionary control system and chassis transmission”; suspension and steering system technology upgrades which effectively ensure high reliability and resistance to lower maintenance costs and delivers 85% of previous operating costs and a 15% improvement to high- job performance.

SPECIFICATIONS: • Sections: 6 • Boom extension: 63m • Jib length: 34.6m • Max lifting height: 98.5m • Max capacity fully extended: 2,979.2kNm

New SaNy 77t RtC deSigNed to fill maRket gap why get it?

Heavy capability WitHout 90t prices Sany has launched its 77t (85T) rough terrain crane the SRC885 in North America, designed to fill the gap between the 80 and 90 US ton cranes and meet the growing demand for higher capacity cranes.

“The market is looking for a strong product that provides higher capacity than the more common 75T and 80T class machines without carrying the price tag of a 90T crane,” said Kyle Nape, senior vice president, Sany America Lifting Group.

“We expect the SRC885 model to meet that demand and fulfill contractors’ expectations.”

The SRC885 provides reach of up to 63.9m through a five-section, full-power boom. It can achieve the rated 77t lifting capacity at a 3.05m radius.

With an overall weight of 52,562kg, it is also well-sized for a variety of applications while still being easy to transport.

Common with other Sany RTCs, it delivers the trifecta of lifting power, pick-and-carry capability, and operating stability on virtually any jobsite regardless of terrain. Nape said that the new model combines exceptional value with ease of

operation, ease of maintenance and attention to operator comfort and convenience.

Like other Sany RTCs the SRC885 uses globally sourced key components, including Cummins engine, Braden winches and hoists, Dana transmission and Parker hydraulics, satisfying the serviceability demands of customers and dealers alike.

Key features of the crane are 4×4 hydraulic powered steering and earthmover-style tires; threeposition outriggers that level the crane with up to 315 mm of ground penetration and maximum horizontal extension of 7.32 m to provide stability in adverse ground conditions; and a 202 kN Cummins engine which integrates with the hydraulic system for precision control and multifunction load sharing.

Operators benefit from hydraulic joysticks which provide smooth, variable control of crane functions, and the two-speed swing system rotates 360 degrees in either direction.

Nape expects the new crane will be popular with contractors and equipment rental operations because of its ease of use and maintenance as well as its transportability.

“Along with its attention to operator comfort and easy serviceability, the SRC885 is priced right for both rental and contractor customers, which will help establish a strong market presence,” he said.

“This machine offers a combination of specifications and capabilities that demonstrates our commitment to satisfying the demands of the North American market.”

SpeCifiCatioNS: • main boom reach: 11.8m to 45m • Boom extension: 9.2m to 16m • max. hoist line pull: 9325.41kg with 19.05mm diameter line • length: 14.3m • width: 3.35 • height: 3.8m • tail swing: 4.54m • total counterweight: 13,000kg

JuNgheiNRiCh outliftS the CompetitioN at ifoy awaRdS

Jungheinrich scored two of four awards at the International Forklift Truck of the Year (IFOY) Awards this year, a competition organised by the German Engineering Federation (VDMA) creates for materials handling equipment.

An international jury made up of leading trade journalists put the contending forklift and warehouse

trucks through their paces and ultimately voted on the awards for the year’s best products.

Hamburg-based Jungheinrich’s DFG/TFG 540s diesel/gas machine with hydrostatic drive and a load capacity of 5t reigned supreme in the category of counter balanced trucks from 3.5t.

Where extremely high loading performance is needed, during reversing for the loading and unloading of haulage trucks for example, the strengths of the hydrostatic drive – dynamic acceleration, fast reversing and precision steering – come fully into play.

Additionally its ETV/ETM 214/216 reach truck won the Warehouse Truck category in what was an exciting “photo-finish”. In stating the reasons for its decision, the jury said that the highly reliable order-picking truck combines energy efficiency with excellent handling, great driving performance and a range of ergonomic features.

Winner of the highly competitive category of counter balanced trucks up to 3.5t went to the RX

70 Hybrid from Still. In the opinion of the jury, this first diesel forklift with energy recovery system and electrical power transmission not only achieved unmatched low energy consumption during the IFOY test but also laid down a benchmark for the development of these trucks, taking the balance of ecology and economy into a new era.

Crown GmbH also won the award in the Forklift Truck Solutions category, for its work at the UK office supplies wholesaler Spicers, where it managed to cut maintenance and repair costs at 90% at the end of 2012, through a new and more efficient forklift fleet, less than half the size of the previous one, combined with the “InfoLink” fleet management system.

In awarding the trucks, the selection process was divided into two phases. In the first phase, the jury reviewed all entries and nominated a maximum of five trucks and solutions in each category.

The shortlisted trucks were then subjected to a purpose-developed IFOY test over the course of one week.

Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

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New Products

KoMATSu AMERiCA’S nEW WhEEl loADER Why gET iT? Greater productivity Lower operatinG costs Komatsu America Corp.’s WA1200-6 wheel loader is designed for use in mining applications. Based on extensive customer input and feedback, the loader includes environmental, technological and ergonomic enhancements for even greater productivity, while lowering operating costs.

The WA1200-6 is powered by a Komatsu SDA16V160E-2 engine that delivers 1,410kW at 1,800rpm. With an operating weight of 216,409kg, the new loader offers increased fuel efficiency (the engine net output of the WA12006 has been increased by 132 hp to 1,316kW at 1,800rpm).

The use of an electronic governor results in low fuel consumption, with quick throttle response to match the machine’s powerful tractive effort and fast hydraulic response. The dual-mode active working hydraulic system allows the operator to select between normal and powerful loading, while the optimum oil flow in the working system increases efficiency and reduces cycle times.

The engine RPM control system with auto deceleration allows the operator to set the engine RPM at the optimum work performance level and control speed smoothly with the accelerator.

The variable transmission cut-off system for the left brake pedal is adjustable by a switch at the operator’s seat. When loading, the low setting reduces brake impact to prevent spillage, while the high setting can be used for traveling.

An additional torque converter cooler was added as standard equipment to reduce oil temperature and increase cooling capacity.

MAniTEx nEEDS no CounTER

SAny AMERiCA hiTS MiDWAy PoinT Why gET iT? tier 3 option avaiLabLe reXroth systeM adds controL

With a rated lift capacity of 165T (150t), the new Sany SCC8150 crawler crane fills a strategic position in Sany America’s crawler crane lineup midway between the 110-ton (100 tonne) SCC8100 and 220-ton (200 tonne) SCC8200 machines.

The SCC8150 crawler crane achieves its maximum lift capacity at a radius of 4.9m. It may be configured with either a main boom that reaches up to 82m or a fixed jib up to 31m long. A fuel-efficient, 340-hp (316 kW), Tier 4 interimcertified Cummins engine powers the SCC8150 crawler crane. A 325-hp (242 kW), Tier 3 Cummins engine also is available.

“The SCC8150 gives contractors a new option in a competitive segment of the market,” said Kyle Nape, senior vice president, Sany America Lifting Group. “Our new crane delivers a superior combination of control, performance, operator comfort, power and dependability that meets and exceeds the requirements for a machine in this weight class.”

The SCC8150 crawler crane offers superior control and reliability through its Rexroth hydraulic system, including the

main pump, main valve and servo control. Independently driven drums include hydraulically powered planetary gears. The hydraulically driven swing system provides 360-degree rotation.

Operators will find a combination of comfort, control and safety features in the Porsche-designed SANY UltraCab 2. The UltraCab 2 provides enhanced ergonomics, large windows for clear visibility, heat and air conditioning, and well-placed function screens and video monitors to enhance operator control. Other key capabilities include a boomelevation device, emergency stop of all function SPECifiCATionS: • Weight: 45t • length: 16.3m • Width: 3.5m • height: 3.2m • Counterweight: 73.4t

Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

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SPECifiCATionS (DA40): • Engine: SDA16V160E-2 • Power: 1,410kW @ 1,800 rpm • operating weight: 216t

Why gET iT? Good for rentaL ops no counterweiGht Manitex has unveiled its newest boom truck crane, the 19t 1970C. The company said that the new crane is one of the highest-capacity units available on a 4x2 chassis, and it was expecting it to be widely used in rental applications.

The 1970C has a range of features including a 70ft three-section proportional boom, a 37m max boom tip height with optional two-piece jib. it also has a fixed jib option, self-lubricating boom slider pads and a two-speed planetary hoist

with grooved drum and negative draft flanges.

The crane has a loadmoment indicator system along with a two-section telescopic jib option and A-frame outriggers and stabilisers.

Manitex said that the 1970C required no additional counter weight, which offered greater payload capabilities.

The 1970C has been designed to be installed on all north American made truck chassis that meet Manitex’s truck chassis requirements.

Production deliveries began in July.

DOOSAN ANNOUNCES ADT FEATUrE UPGrADES Why GET iT? It’s safer Great loaded data

SPECiFiCATiONS (DA40): • Max payload: 40t • Body capacity: 24.4m³ • Engine output: 398 kW @ 2,100 RPM

Doosan Construction Equipment has launched upgraded versions of its DA30 and DA40 articulated dump trucks, with new features targeting vehicle performance in hauling applications in sectors including quarrying, mining, construction.

New features include a levelling meter developed to meet new safety requirements in the quarry industry, which uses sensors to warn drivers if it is unsafe to move forward or in reverse. The system uses rotation sensors installed on the front and body of the truck to show drivers a graphical readouts on the control panel, warning them to stop if there is a danger

of turning the body of the truck over. Focusing on improved performance, Doosan has developed a new payload and cycle count meter, utilising load sensors on the front and body sections of the machine, which provide an immediate readout on the cab’s control monitor of the payload with an accuracy of +/- 5%.

The load is registered and counted in the Vehicle Control Unit if the weighing value is at least 3.0 tonne. To avoid more than one registration per load the next registration is not possible before the vehicle has travelled more than 50 m or after a timeout of 3 minutes. The data can be downloaded to a USB stick or sent through GPS. Other features are an improved fault detection

systems with a higher visibility displays on the dashboard, and Lexan headlight guards for improved protection when working on applications in poor light or at night.

Both ADTs have a completely new cab providing more space and improved visibility for the operator, ‘best in class’ noise levels and a fully automatic climate control system.

Doosan builds two ADT models, the max 28,000kg payload DA30, which produces 268kW @ 2,100rpm and has a SAE heaped body capacity of 18 m³, and the DA40, with a max payload of 40,000kg and a SAE heaped body capacity of 24.4 m³, with engine output of 398 kW @ 2,100rpm. Components from suppliers include Scania, ZF and Parker.

LiEBhErr BUiLDS UP MCC rANGE Why GET iT? fast set up tIme Job sIte flexIbIlIty Liebherr debuted its new MK140 mobile construction crane (MCC) at Bauma 2013, and the mobile crane is the largest in its MCC range, which now consists of four models (MK60, MK80, MK100/110, MK140). The MK 140 is a compact five-axle model, Liebheer says offers a whole new dimension of performance in this crane class - one which was previously the exclusive domain of machines in higher axle classes.

The crane has a standard radius of 57m and a lifting capacity of 1,800kg at the tip. The radius can also be extended as an option to 62.4m or 65m with two different jib head sections. Maximum lifting capacity of the machine is 8,000kg. A major improvement on the existing MCC range is increased luffing ability, with a special “luffing jib mode” with an angle of up to 70, which allows for a maximum hook height of up to approximately 95m.

Built with the undercarriage of an all-terrain crane, and a super structure similar to a fast-erecting the tower crane, the MCC is a collaboration between Liebherr’s two crane-building business units -

Liebherr-Werk Ehingen (which builds mobile cranes) and Liebherr-Werk Biberach (which builds its tower cranes, and the MCC series).

The chief purpose of the MCC range is typically to work in a built-up area, where the long reach of the jib (including when luffed) means that the crane can deposit loads on roof tops, with its base positioned extremely close to the side of the building. By comparison, use of an ATC or truck crane would require a much larger capacity unit for a similar job.

It is also a favourite in congested areas where there are limitations on job times, and also since it can be placed on the footpath immediately adjacent the structure. With its application in mind, the MK range’s jibs can be erected in tight spaces, with a number of possible extension patterns. Liebherr has had some success in the Middle East with its MCC range, and last year held live demonstrations of its MK100/110 crane. One factor counting against it is that the MCC crane typically can complete a job in a few hours, while many rental companies in the region prefer to charge day rates for crane hire!

Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

SPECiFiCATiONS: • Max lift capacity: 8t @ xxm • Max hook weight at tip: (standard) 1800kg @ 57m • Jib luffing range: 0-70 • road weight: 60t, 12t per axle

Operation: Get ripped AlwAys use the right equipment. As Any fitness freAk will tell you, using equipment thAt you Are not suited to cAn ruin All thAt effort you’ve put into it.

Keep on running Whether you own your equipment or are renting, keeping your equipment is essential to racking up mileage. Fine tune your maintenance routines; take advice from dealers or other operators, and above all the key to a fit and healthy operation is ensure you’re doing preventative maintenance. Your team need to realise that they are essential in care and maintaining equipment.

Put together systematic inspection, detection, and correction of incipient failures either before they occur or before they develop into major defects.

Bigger, faster, stronger

Time to beef up your operation with Construction Machinery’s fitness routine to improve your business. Get your gear on, it’s time to work-out!

get pulling in the right direction Get resources where they need to be. Know what’s going on with the team and make sure they have the resources necessary to get the work done. Negotiating language and cultural differences often makes the biggest single challenge for plant and site managers in the region reluctant to pass on responsibility to their team. Incentivise your team and pick all-stars who can be your champions.

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Improve your strength Be honest about your capabilities and the strengths and weaknesses of your operation when you want to add grunt.

Collect data related to the work to be performed, such as the type and work item, condition and location of the site work, volume of work, and the target date for completion of work requiring heavy equipment. Select kit based on the method of work and site conditions, adjust the volume capacity of the heavy equipment to the job.

get a gym buddy Don’t bite off more than you can chew by yourself. A contractor who continually builds $1,000,000 commercial buildings will find new and different challenges building a $15,000,000 building. If your company wants to increase the size of the projects it bids, consider a joint venture with a contractor who routinely completes such projects. This not only spreads the risk but also creates a working relationship for potential future opportunities. Also, slowly work up to larger contracts.

get flexIble If you’re going to get fit you’re going to need to get flexible. If contractors or plant managers have learnt anything over the past five years it is that the construction circuit is incredibly volatile and difficult to plan for. Cut out costs to be leaner and build a fleet that acts like fast-twitch muscles and can react at an instance.

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Operation: Get ripped

Hit tHe cRoss-tRaineR Most heavy equipment operators will spend the majority of their time in a heavy equipment, depending on their training. But, as an operator, they may sometimes be asked to work as part of a team – and do things specifically unrelated to their current job.

Encourage your operators to learn about other equipment in your fleet.

Repeat and Repeat again There’s no point introducing new programmes into your routine if you’re only prepared to do them once. Whether you are talking refined maintenance programmes, training or changes to your management style, change in your business takes time and will need to become ingrained into your operation. Be prepared to stay focus on your goals and your business will have a physique to be proud of.

work your Core

Are you the quickest or the strongest in the market, or a specialist lifter? Indentifying your strengths and weaknesses and getting that message clear to clients is absolutely critical if you are going to stand out among the other jocks. And remember while people remain your main resource, machines are sill the core part of your business.

Be safe! Like using the wrong running shoes can Lead to injuries, not wearing proper safety gear can cause avoidaBLe accidents and Be Bad for team heaLth.

The Cooldown - Time To Cool off The summer heat in the Middle East requires special preparation. Leaving equipment outside and idle in the heat can damage parts. Try keeping equipment covered and if possible move it inside or under shade, it not use a tarp or cover. According to Volvo, switching your construction equipment to “sleep mode� or even completely shutting it off allows it to cool down. While this should be done after hours, it is wise to do so during the day when the equipment is not in use. In addition, you will be able to save on energy costs for your business, which can run higher than expected in hot weather.

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GPS and Tracking

Smarter not harder You don’t think twice about buying a newer smartphone with improved features. But does your equipment fleet also need a communication technology upgrade? Stian Overdahl writes.

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Better vision Caterpillar recently released an upgraded version of VisionLink product, which is the user interface which links with Product Link. The key features are mobile optimised web application, the ability to schedule automated delivery of VisionLink reports, and remote access to on-board payload system information.

The system allows users to view the view the location of assets on a map, track scheduled services, view fault codes and open alerts, and access idle, working and runtime through a smartphone, whether running iOS, BlackBerry,

Android/Chrome or Windows operating systems.

Users can also schedule business reports (whether daily, weekly or monthly), to be emailed through to those within the company that have an interest in the job site progress and efficiency.

And the upgrade also introduced new functionality for wheel loaders and off-highway trucks equipped with onboard payload systems, while allows managers to remotely monitor information such as total payload moved per day and total payload per hour and per unit of fuel.

“We Were verY IMPreSSed WITh The AMounT of

quAlITY InforMATIon AvAIlAble on vISIon lInK lIKe MAchIne uTIlISATIon, fuel conSuMPTIon, MAchIne locATIon And fAulT codeS.”

W

e live in a world where advancements in computing technology – especially mobile – are a given, and no-one thinks twice about checking their emails while out of the office. Yet despite advancements in communication technology, not all construction companies are taking advantage of IT tools to improve their fleet management.

Knowing where machines are located on a jobsite, how they are being used and whether operators are efficient, is an important part of any construction manager’s job. Most managers visit a jobsite everyday to check progress, and in the process will often need to dispense advice about technique and efficiencies for machinery operators.

And though there may never be a replacement for having a physical presence on the jobsite, machine telematics are providing an extra set of eyes for plant and construction managers, as well as providing tools for longer-range analysis of individual machine and operator functioning.

Telematics had its birth in the trucking industry, with GPS used to track vehicle location over long trips, as well as monitor fuel usage, a critical component

for the industry’s profitability. In the construction machinery industry, telematic products are offered by all of the major manufacturers, and there are also third-party product offerings available.

Most telematic systems have a chip that collects information from the machine, which is then transmitted either via cellular network, GPS satelite or else cable, to the site manager’s computer.

Increasingly monitoring updates are also available directly to smart phone or tablet applications.

The main areas of machine operation that are monitored include idle time, machine position, fuel levels and consumption, payload information and cycle times, as well as fault codes.

Telematics also allow plant managers to create schedules for maintenance and receive reminder alerts in advance, and the systems will also send alerts if fault codes are detected on-board.

Managers can also geofence their machines, setting up parameters around the job site, and will receive an alert if one of the geofenced machines leaves the site or is in the wrong area. This can be useful in extreme cases such as theft or use of the machine by employees outside of hours, but more

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GPS and Tracking

Tracking Thieves The value of tracking systems in thwarting theft was recently demonstrated in England, after thieves stole a JCB loader with its LiveLink tracking system only to be tracked down more than 600 kilometres away.

The articulated wheeled loader, worth around $115,000, was stolen from a JCB

dealer’s premise, and taken to the sea port in Dover, and through France and Belgium as it was transported on a curtain-sided lorry.

Staff in the security control room at JCB’s World HQ at Rocester, Staffordshire were able to provide international police forces with live updates of the loader’s precise location.

Caterpillar has recently released an upgraded version of VisionLink product, which is the user interface which links with Product Link.

Eventually it was recovered more than 600km from its original destination and the driver of the lorry arrested after police put in place a roadblock near the Dutch/German border.

really proved its worth.

Realistically it would probably have never been recovered if it had not been fitted because the police would not have had the resource to try to recover it without exact details of its location.”

Simon Carrington, Managing Director of the Cotswold Farm Machinery dealership said: “JCB LiveLink has

According to JCB, around 35,000 machines globally are now fitted with the JCB LiveLink product.

often it will be used when a construction site is adjacent a critical area such as a gas pipeline or railway track, and the machines are forbidden to enter the area.

In Europe, telematic systems were been developed to improve fuel costs, as well as combat machinery theft. Machinery theft is less of an issue in the Middle East, but despite significantly lower fuel costs, diesel still contributes a significant percentage to a job’s overall cost.

And one of the main contributors to fuel usage in the Middle East is idle time. Idling also generates extra wear and tear on the components and increases maintenance costs with respect to the amount of work carried out.

Machine idle time can occur due to poorly organised job site: for example, if there are not enough trucks and the loader operators are forced to wait a long period between fills. Or it can simply be a case of employees sitting in the cabin with

Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

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the engine running to take advantage of the cabin air-conditioning. With telematics, managers can analyse and compare the idling time of various operators, and target those who have the lowest utilisation rates.

The amount of money that can be saved by operators is illustrated by a recent case study from Qatar, where Al Jaber Engineering (JEC) in Qatar approached the local Caterpillar dealer Mohamed Abdul Rahman Al Bahar, with an interest in using CAT’s Product Link telematics on their fleet. JEC was established as a part of Al Jaber Group in 1995, and has around 1700 pieces of equipment in its fleet.

Before investing on the product across their fleet, they agreed on a demonstration on one of their Cat 345D excavators. Over a demonstration period encompassing 758 hours, the monitoring detected two problems – unnecessarily high idling time, and a specific sensor fault.

Of the 758 hours the machine had been in operation, 270 of these had been spent idle, equating to 36% idling. As a result the operator was provided with additional training, which over the next section of the trial resulted in idling time being reduced to 5%.

Over 1000 hours of use, this equates to saving of some 300 hours, a huge reduction fuel usage and unnecessary wear on parts, as well as a much improved machine utilisation.

The monitoring product also detected than an engine sensor was behaving abnormally, and the machine sent alerts to Al Jaber Engineering, and Al Bahar. Al Bahar was able to send a technician to replace the sensor with the correct part the first time, planning the component replacement into the Al Jaber engineering schedule. The early intervention meant that it did not evolve into a potential downtime issue for the machine at a later time.

GPS and Tracking

GNSS versus GPS GNSS (global navigational satellite system) is the term for a system that uses satellites to provide accurate positioning anywhere in the world. Currently there are two satellite systems that are truly global – the United States-developed GPS, and Russia’s GLONASS. Both China and Europe are also in the process of expanding their

regional satellite systems into a global offering, expected to be completed by around 2020 for each. Accuracy of GPS vary, and a consumer GPS device such as a smart phone can have accuracy anywhere between 15 - 2 metres. When on-board GPS is being used in conjunction with surveying data for active machine control, then the preference

Jec consequently decided to further invest in the product, asking al bahar to install product link on 51 machines as a phase 1 roll out, said al Jaber’s engineering director, hisham hadid. ”we were very impressed with the amount of quality information available on Vision link like machine utilisation, fuel consumption, machine location, fault codes etc, which definitely benefits us on the project completion with the most efficient utilization of high value equipment,” he explained. in the case of caterpillar, product link can be installed on older machines, as well as equipment built by other manufacturers.

“One Of the main cOntributOrs tO fuel usage in the middle east is idling time, which alsO generates extra wear and tear On the cOmpOnents and increases maintenance cOsts with respect tO the amOunt Of wOrk carried Out.” Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

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for construction machinery is for a dual GNSS receiver. Most telematic systems communicate via cellular GSM networks when these are available on a jobsite, and thankfully the Gulf countries have excellent availability of 2G and 3G networks. Other options for communicating at remote sites include satellite, via radio frequences, or USB upload.

monitoring tools can be especially important in highly repetitious applications such as quarrying and aggregate, where operators are repeating the same movement over and over. in this context, managers can easily see the results from training. south of doha, at the Qatar primary material co.

(Qpmc) sand cleaning plant, Volvo construction equipment loaders are working long hours on site, often up to 22-24 hours per day. three machines are working on site, and one of these, the newer 26.4 tonne l180g, is equipped with Volvo ce’s caretrack monitoring product. the product allows the site manager to monitor to assess fuel consumption, engine speed and the range of other performance metrics, allowing for greater fleet control. as the use of telematics have grown, manufacturers have continued to make improvements to both the hardware components, for example using more robust and lower cost on-board chips, and improving the software programmes and available analysis. but unlike introducing an improved product – for example a new wheel loader with a larger engine or lower fuel consumption – where the customer will eventually need to upgrade, many fleet operators are not using telematics at all, and the requirement is for manufacturers to convince construction companies that telematics will save them time and money in the long run. testimonials from successful companies include using fuel usage monitoring when bidding for a job, by downloading data fuel consumption and comparing how much fuel each machine is burning. this is then used as a tool to calculate the fuel usage across a job. Other advantages are minimization of downtime through accurate planning of maintenance schedules, coupled with fault code alerts for technical problems; and improved servicing can result in a longer overall life for the machine. ultimately telematics are not a magic bullet that will solve all fleet problems, but rather an information tool that provides fleet managers with more information and better oversight, allowing their machines and the company to work smarter.

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The Last Word viduals cting 15 indi eship IHE is indu apprentic ng ivi ce re who are uipment. trucks and eq training in

b skills es with the jo fresh candidat e e Trucks th th p in ui s eq al will ofession pr to in e ral ur at Mohan, gene required to m or,” said Ram ct e Se th t , en on ti pm “ In addi and Equi ercial Group. sure m en m Co to of ed er gn manag been desi s ha e m m gr ra og ills also ow integrated pr ge and soft sk ua ng la s e’ ne that the trai ialists.” complete spec with is also in line to make them m s program e hi quar ter “T lf d: ha de nd ad He in the seco n, io ns d, it pa ex pr d ore wides ea IHE’s planne operations m e er th w e po ak m an ained m of 2014. To uipped with tr eq be to l ia t.” is essent old benefi tive has a twof Zubair Automotive and this initia an, pl n expansio ales, As part of its ,000sqm 3S (s 55 a ng pi lo ve and de is uc E isfa for tr ks Group’s IH ) facility at M es 14, ar 20 sp d in y an ad services y, when re lit ci fa w ne is uipment equipment. Th multi brand trucks and eq t es rg will be the la countr y. s industrial facility in the the Sultanate’ of r te or pp A dedicated su a full-fledged Oman-wide rk o w n ovides a c dicated n o ati sector, IHE pr is n mplete with de e official a co m n O io s at e er v op ar IHE pro commercial rtments and and parts depa ucks together with sales, service Tr lt lvo and Renau cial vehicles. dealers for Vo ialist commer ec sp of e ng ra omote and an extensive initiative to pr ed gn wing si de lly n under their In a specia g , IHE has take lin nt l gg le ca ta ru ni l st ca ch e lo te ar ts ugh a develop C governmen ho will go thro loped w h ve g ut de un hile a few GC yo yo en i g be an in s 15 Om e which ha of encourag m ay m , w ra or ute. a ct og it nd se st pr fi e to ivat aining In skills training ter into the pr e Technical Tr th h E it IH n w p ca at hi nationals to en ty es ness a priori in partners ing that busi t always been s an n w ha ca e n ho w io w e e at Oman is prov m is os m “Oman path for th ng progra ni er ai re tr ca e l iv fu ns e, ng te ni in e caus provide a mea and with the mitment to th case our com e uth of ow os yo sh cl i ly k. is an e or m on w t er O to no ples to the al figures th ci am fi ex of exist e , to id on ov ti th ng Accordi e popula rtunities at but also pr oyment oppo , or 5.4% of th pl le or ted op em ct no d pe se ,” ol 6 ic or if 32 bl ct cial se to 153, The pu the man e and commer s and the Sultanate. iv ce in ot ur m ed so to re oy au pl an e unem in th senior hum , hi y us it al or B i aj l p.

A an m al Grou absorbs the Jamal Mohd rt on the Om er - Commerci its recent repo e ation manag tr th er for their is at w in th According to po m d an ad te M inistr y of lop blishing no M ve Pu e de d th or k to s xf an O rt th t, fo “We following the marke ping up ef confident that e rms to has been step fi ar t d to en an es m t ainees will iv rn or nt ve go supp fering ince all of the 15 tr , of od by ri ce or pe an ct ip st se si sh the private apprentice providing as essionals.” l staf f and also thorough prof sses. These as ne si ge er bu n hire more loca em hemes should ow blish their enticeship sc e ta pr th es h ap it e to w th is ce le an Whi to Om t of tackling to keep pa at the forefron not been able ed ve er id ha the ef forts s ns . rt rt co fo ef be lf countries, d the repo Gu te e no th , in on ip t ti sh en la m like IHE and apprentice rising popu unemploy private sector e e are signs that at th e iv er in pr d apathy th e es er th ni d ev How of compa long ingraine rnment an ng ve ti go gh e fi th ill st by are up paid and schemes set government in-roads. outside of high g er in re ak ca m ly a ly nt g in ce sector are slow eavy Equipment (IHE) re towards forg t offices. lman lH in governmen t’s ministr y bs en jo m re rn t, Hussain Sa Internationa cu ve se go ence in Musca er that h the Omani nf g it ed co w un rv nt es yo se rc ce to ob fo re At a joined ticeships Industry, en es pr bl ap Ca r fe an m of ee O d , to truck an of employ s of manpower Al Lawati, MD productivity career in the e a th ild es se bu ea to cr inculcate valu Omanis keen in order to in gent need to g ur . on an or is ct am e lt b se er t jo au r th love fo le of Ren equipmen k culture and s af ter the sa or ok w lo of ch hi w IHE, anate as the youth. ks in the Sult mpanies who Oman’s problem and Volvo truc , on si vate sector co vi ri di is “P ts ar rp te mber of Oman well as its In Omanis make up 15% of ploy a large nu g 15 em in ct e ar du in ho y w tl people is curren the workforce in the private require more ho will be d efficient. an individuals w sector, with the balance comprised ve ti ve uc prod mprehensi co a in d e is not ne ur of expatriates. In 2012 the number trai “Work cult ip in trucks ch one learns hi of registered unemployed Omanis w apprenticesh something d or an t, en pm reached 153,326 people, or 5.4% of the ol, university and equi from the scho ar t lltime st fu d to s re fe ha of It . population.

The government’s efforts will be h training ug ro e th th h it be w to get unemployed youths in to the ople have to employment from home. Pe work instead of successful private sector are struggling eir company upon training. th taught to love the to keep pace with a rising completion of .” ry ed la ur lly struct loving their sa population.

“This specifica bined m co ng ni ai classroom tr hich arisations, w with job famili

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CONSTRUCTION

MIDDLE EAST

August 2013