Construction Machinery Middle East

ISSUE 6 APRIL 2012

PUBLICATION LICENSED BY IMPZ

BEHIND THE BADGE Mercedes promises to be bold

RULES OF THE ROAD

machinery show special

RTA chief talks safety

THE BIG REVEAL

BOBCAT BIRTHDAY Celebrating at Intermat

Saudi show unwrapped *

*

*

*

plus: across The inDusTry news & Views offroaD TesT be a beTTer buyer anD more

Contents

IS S U E 6 2 A P R IL 2 0 1

page 22

HITTING THE GAS

Demand for heavy-lift machinery is getting a helping hand from investment in the oil and gas sector in the Middle East region.

40

44

59

04

Editorial

Time to try something new.

06

NEws

What’s happening across the region in the world of construction machinery.

16

mErcEdEs waNts to bE bold

22

markEt aNalysis: oil aNd Gas

Market analysis of how the prospects of the oil and gas industry are fueling the need for machinery.

29

it’s show timE!

Your essential guide to April’s Construction Machinery Show in Jeddah, Saudi Arabia.

37

truckiNG oN track

Can telematics be a success in the region and a look at Volvo’s green production line.

44

rulEs of thE road

58

thE last word

Do high oil prices mean high construction activity?

CMME’s special look at the commercial vehicles sector starts asking why Mercedes has decided it needs to be more aggressive in the Middle East.

Dubai’s RTA chief talks the challenge of region regulation.

64

Raw power

NEW RELEASES Your quick guide to what’s new in machinery. Page 54 LOGISTICS EQUIPMENT Your guide to logisitics equipment. Page 56 COMMERCIAL APPROACH A special report on the direction of commercial vehicles technology.

Page 59 BE A BETTER BUYER Be a better operator in the market. Page 64 OFF-ROAD TEST Taking the Kerax out for a trial in the desert. Page 69 FIND ME A DEALER! Guide to dealers in the Kingdom of Saudi Arabia. page

42

Editor’s Letter

Publisher Dominic De SouSa GrOuP COO naDeem HooD ManaGinG DireCtOr RicHaRD JuDD eDiToRiaL eDitOr STepHen WHiTe stephen@cpidubai.com +971 4 440 9110 CreatiVe DireCtOr RuTH SHeeHY info@ruthsheehy.com GraPhiC DesiGner GLenn RoXaS glenn@cpidubai.com COntributOrs conRaD eGbeRT, DaVe ReeDeR, KaRen YounG

NEw tEch comEs oNliNE

aDVeRTiSinG

M

business DeVelOPMent DireCtOr micHaeL STanSFieLD michael@cpidubai.com +971 4 440 9128

aybe it’s having both the Construction Machinery Show and Intermat on in April but technology dominates this month’s issue of CMME magazine. Personally this is one of the most interesting times of the year. There is nothing quite like getting hold of a new piece of kit, whether it’s a 30t truck or a new mobile phone. There’s nothing quite like the expectation and getting familiar with something you genuinely haven’t seen before.

By the end of April, we would have seen everything that the industry has to offer for the year and how much it is going to cost to upgrade, renew and replenish inventories.

I’m really looking forward to seeing what the construction machinery manufacturers have up their sleeves – it’s no coincidence that we run with Bobcat’s upgrade to the E16 on the cover – although I suspect we will see a generation of machine light on innovation and heavy on efficiency. But the great things about shows like these, you can never be sure.

Talking of introducing something new to the market, we launched the Construction Machinery Middle website at the end of March, plus a raft of supporting social network sites. Now you can stay up to date with the issues that really matter in the industry.

The challenge for the team at CMME is to not only get news out as it hits the industry but also to try and create the first true forum for people to pass on their views on this unique corner of the industry.

So with the new website, comes a new request: please send us any links, stories and comments that you will feel will spark interest and debate.

You’ll find many of the features that you’ve come to expect from the magazine, but hopefully we will also be able to bring a lot of content from the web that we just don’t have enough room for in the tight confines of the publication.

COMMerCial DireCtOr RaZ iSLam raz@cpidubai.com +971 4 440 9129

ciRcuLaTion Database anD CirCulatiOn ManaGer RaJeeSH m rajeesh@cpidubai.com +971 4 440 9147 pRoDucTion OPeratiOns DireCtOr JameS RaWLinS jamesr@cpidubai.com +971 4 440 9108 PrODuCtiOn ManaGer JameS p THaRian james@cpidubai.com +971 4 440 9146 DiGiTaL www.constructionmachineryme.com DiGital serViCes ManaGer TRiSTan TRoY maaGma Web DeVelOPers JeRuS KinG baTion eRiK bRioneS JeFFeRSon De JoYa online@cpidubai.com +971 4 440 9100 pubLiSHeD bY

1013 centre Road, new castle county, Wilmington, Delaware, uSa branch office po box 13700 Dubai, uae Tel: +971 4 440 9100 Fax: +971 4 447 2409 pRinTeD bY atlas printing press L.L.c.

Being version 1.0, I’m sure that it is bound to evolve as we progress, and I look forward to hearing your thoughts on areas for improvement and development.

See you on the web!

© copyright 2012 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.

Construction Machinery Middle east is brought to you by the team behind the Kingdom of saudi arabia’s largest construction machinery event, the Construction Machinery show. the next show takes place in Jeddah, 22-25 april 2012.

stephen White, Editor, CMME

www.constructionmachineryshow.com

4

CONSTRUCTION

MIDDLE EAST

April 2012

News Round-Up

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

Why EN-V?

The EN-V is a zero-emission, autonomous car for our driverless urban future. First conceived as part of a collaboration between General Motors and the personal-transportation manufacturer Segway, the EN-V (short for Electric Networked Vehicle) is designed for environments dedicated to networked self-driving vehicles – the cities of 2030, according to GM.

China pulls workers from syria on safety ConCerns

China is ordering workers home from Syria, its commercial minister has revealed, as the country strives to avoid the chaotic rescue of Chinese nationals from Libya last year.

A small crew of 100 Chinese workers will be left behind to guard work camps and equipment, said Chen Deming.

“The Chinese government and ministries must seriously undertake the protection of Chinese firms’ production and projects overseas, and the protection of the lives of Chinese citizens overseas, especially engineering teams,” Chen said.

China sent an

envoy to Damascus last month, and Yin Gang, a professor at the China Academy of Social Sciences, said the pullout of Chinese citizens does not signal a shift in the government’s stance towards the conflict.

“I think it is only for safety concerns and has no relation to a policy change,” Yin said.

Chen also revealed that current Chinese interests in Libya stood at $17 billion.

Most of these projects are residential construction projects, close to Libyan cities he said.

“The tragedy is that these projects were badly damaged during the instability, the civil war and the foreign intervention,” he said. “We hope that the government can begin compensation for these projects in accordance with international norms.”

New trucks are essential New trucks for the emerging markets are essential if the major truck manufacturers want to stay ahead, says The Boston Consulting Group (BCG).

T

he Boston Consulting Group says truck manufacturers need to bolder if they want to advance in BRIC nations (Brazil, Russia, India, and China) and emerging markets. By 2020, the

66

CONSTRUCTION CONSTRUCTION MIDDLE EAST MIDDLE EAST

September April 2012 2011

analyst estimates that new trucks could account for more than 70% of trucks sold there, or 44% of the global total.

BCG’s ‘Winning the BRIC Truck Battle: How Global and Local Players Can Tap the Full Potential of BRIC Truck Markets’ study focuses on commercial freight-transport vehicles whose gross vehicle weight is at least 3.5 tons. These vehicles include heavy vans, medium-weight trucks, and heavy trucks such as tractor-trailers.

Although the traditional truck makers of Japan, North America, and Western Europe will remain important, producing 33% of global sales and 37% of global truck profits by 2020. BCG says truck OEMs that want to be global players will have to be competitive in emerging markets. These markets are expected to generate 64% of truck-sales volumes and roughly 50% of global truck revenues and profits by 2020, according

to BCG. The key to winning the BRIC truck battle will be meeting demand for in the new mid-market segment.

Mid-market trucks will be more sophisticated than today’s vehicles from BRIC OEMs but less so than the premium trucks produced by global OEMs, such as Mercedes-Benz, MAN, Scania, Freightliner, Volvo, and Isuzu. Customers will demand more powerful engines, more comfortable cabins, and better fuel efficiency than are offered by the low-cost vehicles that currently dominate merging markets.

“Manufacturers need to get into these countries and develop their midmarket products soon or they will be shut out,” said Nikolaus Lang, co-author of the report. “Local OEMs such as Tata, Kamaz, and Dongfeng are big and profitable and have local knowledge and networks. Some anufacturers have started to localise, but BRIC companies seem well ahead in developing midmarket concepts. Wait and it will be too late.”

Company intelligenCe MAN Truck & Bus Middle eAsT ANd AfricA launched the fifth generation of its premium neoplan Skyliner bus at the Uitp mena Congress and Showcase 2012 hosted by the abu Dhabi Department of transport (Dot) last month. “the gCC is witnessing an increase in demand for luxury transport solutions within the tourism and burgeoning miCe sector and this is creating opportunities for bus manufacturers targeting this region,” said markus geyer, Ceo Sales Region middle east & africa.

The duBAi TAxi corporATioN (dTc), roAds ANd TrANsporT AuThoriTy (rTA) has further beefed up its taxi fleet with new vehicles supplied

by Al-fuTTAiM MoTors al-Futtaim motors, the exclusive distributor of toyota vehicles in the Uae. the Rta’s culminated its long and continuing partnership by signing an agreement with the Co. to supply 543 a brand new ToyoTA cAMry vehicles. “this moU culminates our 15-year joint cooperation and further strengthens and consolidates our strategic partnership. toyota vehicles strength lies in their legendary performance, quality, durability and reliability, all of which are crucial requirements for the operations of taxicabs operations,” said Rta Ceo ahmed Bahrozyan. riTchie Bros. sold more than 200 cranes in five weeks at its first unreserved public auctions of 2012 in north america, europe and the middle east, with close to 90 cranes already scheduled to be sold globally by the end of april. every crane was sold to the highest bidder, regardless of price, and with no minimum bids or reserve prices. the highest dollar value crane sold so far this year was a 2008 liebherr ltm1400-7.1 400-ton all terrain crane, which sold for US$2.1 million (€1.6 million) to an online bidder from india at a Ritchie Bros. auction in France on 6march.

tenDeR UpDateS

1

Qatar plans to award three tenders this year for the construction of the country’s new 27 billion Qatari riyal ($7.4 billion) port, the state-run Qatar News Agency said, citing Nabil Mohammed Buainain, executive director of the New porT projecT . A total of 8.5 billion riyals have been spent so far on 15 separate projects, the news agency said, citing Buainain.

About 17 contracts will be issued in the coming years before the port is completed in 2016, QNA said.

2

The puBlic works AuThoriTy in Qatar has issued a tender of upgrading of existing sewerage network. work includes replacement of existing pipeline, in the same trench, but in small part the line will be rerouted as per the attached plane, as per engineer instruction. contractor has to submit along with quotation the tools, plant & machinery list, a proposed work programme, the work method statement, and risk management plan.

Finance holding back purchasing A senior executive at Doosan Infracore Construction Equipment has told industry publication IRN magazine that sales into rentals and contractors are being held back by a lack of financing in the European markets.

Norbert Donaberger, VP of sales and marketing for DICE’s operation in Europe, Middle East and Africa said the company is consequently trying to make it easier for companies willing to make machinery purchases.

“Availability of easily accessible financial solutions is a constraint,” said Donaberger.

“Without going into details, right now we’re working on projects for rental companies or large contractors that have length projects or jobs.”

“It is definitely a constraint on business. If that constraint was

removed, more business will be done,” he added.

Donaberger also told IRN that the South Korea-based manufacturer is currently not considering creating its own dedicated fleet of rental equipment for rental companies of contractors for specific jobs.

While Doosan had a “good year” in the region in 2011, Donaberger described the company had experienced a steady start to 2012 with rental companies playing their part.

The effects of the financial crisis in the Eurozone is still being felt, impacting confidence levels in the region, according to Doosan.

Stéphane de Laplagnolle, Doosan’s director for major accounts in France, commented that after the increases of 2011 this year’s sales were likely to

be flat, with rental companies unsure about whether to increase their fleet sizes or just replace old machines.

Andrew Hatton, Doosan general manager for branch operations in the UK and Ireland, remarked to IRN magazine that there was a difference in strategy between the larger UK renters, who are investing in their fleets, and smaller companies who remain unsure about the economy and who “are not too concerned about buying new equipment.”

While Doosan believes rental is becoming more important, he said it was difficult to know if this had been accelerated by the recession. “There is definitely a trend for end users to look more towards solutions than just buying a piece of equipment,” he said.

A New mAN oN THe CASe The former head of case’s operation in the Middle east Mario gasparri has been appointed as the president of cnh international.

Mario gasparri, who had been serving as cnh international’s general manager, replaced James Mccullough on 1 april.

Mccullough has retired from the position allowing Franco Fusignani, ceo of cnh international sa, to assume the general management of the business activities with gaspari moving upwards in the organisation. however Fusignani will continue in his capacity as president and ceo of new holland 0agricultural equipment.

gasparri had served as gM of cnh international since taking on the position in september 2010. The role meant he had responsibility for cnh’s agricultural and construction brands in africa, the Middle east, cis, asia, australia and new Zealand. he was also tasked with overseeing the company’s progress in the key markets of china, Turkey, india and Japan. gasparri has held a variety of roles in several Fiat companies for the past 24 years, including the positions of managing director of new holland india and the asia pacific markets and Vp of agricultural equipment commercial operations, cnh international.

September 2011 April 2012

CONSTRUCTION CONSTRUCTION MIDDLE EAST MIDDLE EAST

77

GOT A JOB TO DO? WE’RE HERE TO HELP Terex Construction in the Middle East

At Terex, ‘Works For You’ is more than a slogan – it’s a promise. It’s what you can count on from our equipment and the Terex team in the Middle East, who is here to support you.

From site dumpers to off-highway rigid trucks, compact excavators to backhoe loaders – we’ve got the right machine to do the work for you.

Terex offers the complete solutions: Tough, Quality Range of Construction Equipment for all Applications Network of Dealers Throughout the Middle East World Wide Parts Distribution Aftermarket Support Minimising Downtime

From choosing the right equipment, to providing the parts and service to keep it producing for years to come, the responsive Terex team is dedicated to your success.

Terex Middle East LLC Pinnacle Building, Sheikh Zayed Road P.O. Box No 282325 Al Barsha, Dubai, UAE Tel: + 971 4 3990381 Visit our new website: www.terexconstruction.com I’m a QR code.

Scan me!

Bahrain Iraq Kuwait Lebanon Oman

Kanoo Autos International W.L.L. ALCA TIECO Michel Sehnaoui & FILS S.A.L. Al Fairuz Trading & Cont.Co.LLC

+973 7 709 8966 +962 6 5655070 +965 2 4819188 +961 1 580491 +968 2 456 2645

Qatar Qatar UAE Yemen Saudi Arabia

Al Obeidly & Gulf Eternit Trading WLL Rumaillah Motors W.L.L Abdulla Al Masaood and Sons Industrial Equipment Ashibami Corp.for Trading and Gen. Agencies MEDCO

© Terex Corporation 2011 – Terex is a registered trademark of Terex Corporation in the United States of America and many other countries.

+974 44 662 372 +974 44 606 091 +971 2 5507233 +967 1 420117 +96622907230

News Round-Up

UAe tender prices will Be ‘flAt’ in 2012 One of the world’s leading analysts has predicted that tender prices for construction work in the UAE will stabilise in 2012.

According to global Built Asset Consultancy, EC Harris, prices fell be 3% as the country continued to experience development difficulties from the downturn.

EC Harris said its latest Tender Price Index suggests that prices are expected to remain at the same level during 2012.

The quarterly EC Harris Tender Price Index measures changes in contractor input costs such as labour, materials and plant items. Over the 12 months up to December 2011 the price of nearly all commodities decreased, with the exception of crude oil, cement, reinforced bars and steel beams.

Rubber, tin and nickel showed the most movement during the year,

decreasing in price by 32%, 26% and 25% respectively. ick Smith, Head of Cost & Commercial for EC Harris in the Middle East said: “Commodity prices have shown huge volatility over the past year, reflecting an uncertain recovery in world markets. I don’t think we will see an improvement this year, but tender prices should pick up over the next couple of years as a number of large projects across the Gulf region are given the go ahead and put out to tender.”

EC Harris predicts that consumer price inflation, material prices and construction labour rates will all be flat in 2012, before an expected rise in 2013. With new projects unlikely to be put out to tender until 2013 at the earliest, EC Harris is warning contractors in the UAE that they face a tough 12 months and will have to absorb any increases in labour, plant or materials which will impact margins.

RecoRd yeaR foR Ritchie BRos. in 2011 Canadian auction house Ritchie Bros may have had a record sales year in 2011 but it is predicting a tough year ahead.

The auctioneer, which sells trucks and other equipment from its global network of sites (including Dubai), beat off tough competition and market conditions, to record revenues of $3.7 billion in the year.

The Company conducted 228 unreserved industrial auctions in 13 countries throughout North America, Europe, the Middle East, Central America and Australia during the year. Its gross profit for the 12 months reached $1 billion, a new record.

Despite the strong performance over the year, the auctioneer reported that its last quarter auction revenue rate -- revenue as a percentage of gross auction proceeds -- was flat at 10.91%.

The company expanded its auction network to 43 sites from 30 sites in 2006 and has complemented its growth with online sales, and expects improvements in used equipment transactions, which are driven in part by rise in production of new equipment.

“2011 was a successful year for Ritchie Bros. in the face of a challenging used equipment supply

10 10

CONSTRUCTION CONSTRUCTION MIDDLE EAST MIDDLE EAST

September April 2012 2011

environment, and we achieved the targets that we set for the year” said Peter Blake, Ritchie Bros. CEO. “During 2011 we accomplished a number of significant milestones, including the highest gross auction proceeds and auction revenues in the Company’s history and the successful launch of our new services, thanks to the tremendous team we have in place.

“2011 was characterized by the ongoing tight supply of good quality late model used equipment, which resulted in a strong pricing environment and intense competition for this equipment. Our consignors reacted to this competition by increasing their preference for guarantee and purchase deals, contributing to an increase in our at risk business to 36% of gross auction proceeds for 2011”.

“We have begun 2012 with a number of very successful auctions, and the strong pricing and competitive environments we saw in 2011 have so far continued into 2012.

We remain confident in our ability to grow our business in 2012 and believe we are well positioned to capitalise on improving used equipment transaction velocity, which is driven in part by recent increases in the production of new equipment.”

Alegco/Byrne celeBrAte oryx win algeco, a leading global supplier of modular space and secure storage rental and sales solutions, has announced that its partnership with Byrne Rental in Qatar has won a five-year deal to supply to GtL (Gas to Liquids) specialist oryx GtL. the turnkey project will involve the subcontracting of the civil works, it and fire detection solutions to approved oryx vendors.

Power to the building for the entire rental term will also be supplied. this is the largest office installation delivered by algeco & Byrne, and a 5-year call off order for oryx means

extra modules will be delivered as and when required. the building consists of 44, 4000Kd Modules that will be configured as 22 units per floor in a G+1 configuration. the ground units will be used as an onsite clinic and emergency area whist the upper building is primarily office space.

Modules are currently being assembled for the site and plans are for the building to be up and running by early March. Buildings will be erected within a 14-21 day period. the project will require stringent hse protocols on site to conform to oryx hse standards.

Jim Muldoon, Gcc general manager of algeco, said: “We have had a hugely successful year working with Byrne in the Uae which enabled us to expand in Qatar. “the primary challenge of this project will be the coordination and delivery of all of the related activities within a short space of time - however given our experience, we are certain we will be able to deliver.” the companies have further expansion planned for the upcoming year and already in discussion regarding several other Gcc countries.

THE BEST MB, THE L ATE ST- GENER ATION CRUSHER It can be fitted to any excavator.

The most state -of-the -ar t and ground-breaking ans wer to crushing needs.

COMPANY CERTIFICATION UNI EN ISO 14001:2004 IN PROGRESS

Visit our website inserting the following password:

YOU WILL RECEIVE AN

1222

EXCLUSIVE FREE GIFT

w w w . m b c r u s h e r. c o m MB S.p.A. - Tel. +39 0445 308148 - info@mbcrusher.com

News Round-Up

Great 2012 start for Al-Qahtani Dammam, Saudi Arabia’s Abdel Hadi Al-Qahtani & Sons has enjoyed a stellar start to 2012 and sold over 200 machine sales in the first quarter. Khaled El Shatoury, managing director for Al-Qahtani Heavy Equipment, tells CMME that it will play a big role in the future of heavy machinery in the region.

I

t’s been an impressive start to 2012 for the Dammam-based Al-Qahtani Heavy Equipment, the construction machinery arm of Saudi Arabia’s Abdel Hadi Al-Qahtani & Sons. The company has not only continued its expansion in the Kingdom but is also making its mark internationally.

The company ended the first quarter of 2012, selling 162 machines in the domestic Saudi Arabian market to an array of projects. Most promisingly for Al-Qahtani & Sons it also added to its portfolio of overseas accounts by selling equipment to Iraq, as well as to Senegal and Sudan to the west.

Gulf suppliers have been increasingly looking further afield to expand their operations and, according to Khaled El Shatoury, managing director for Al-Qahtani Heavy Equipment, the deals prove that the company is the “future of the equipment business” and one which has a big role to play in its development.

El Shatoury says that the company has set itself some ambitious targets in 2012, which he describes as “a tough and aggressive budget.”

He continued: “We are always targeting our market segment and focusing on it. As a result, we usually succeed in achieving our desired targets and objectives.”

In the first quarter, the company secured three major international deals to supply equipment.

It recently won the right to supply S. A. Iraq Co with 88 material handling machines. El Shatoury explained that the equipment will be used to support a gas plant project in Iraq.

A second deal sees Al Qahtani successfully winning a deal to supply a batch of equipment to Saudi Bin Laden in Senegal. He commented that the machines will be used to support the building giant’s airport project in the capital of Dakar.

Closer to home, but staying in Africa, Al Qahtani also sold a “big batch” of equipment to Sudan. El Shatoury added that the company’s machines were

12 12

CONSTRUCTION CONSTRUCTION MIDDLE EAST MIDDLE EAST

September April 2012 2011

supplied to SP Construction Company to “support them in their infrastructure project.”

The Abdel Hadi Abdullah Al-Qahtani & Sons Company first established its Construction and Engineering Division in the early 1990s. Among its activities, the division runs its own project and construction department which was developed to execute projects in the field of mechanical, civil, electrical and instrumentation disciplines.

The company has been associated with many major international companies helping them to execute several projects in the Kingdom. The list of brands it has distribution rights for include:

LiuGong, Terex, Cheng Long Motor, Atmos, DaiFeng, IB Tech, Boge, Zowe and ZF. El Shatoury remarked that its success to date is a result of applying the formula of the “train of ‘Ts’.”

“Which is; talent given by God, technology provided by our suppliers, teaming by ourselves, then training for our team and giving them a certain target, supported by different techniques, following-up through tracking system, an applying the total quality management in all levels to make any correction action required,” he said. “All of that ensures the strategic implementation of our marketing plan and allows us to measure our performance day and night through answering the most important questions; where we are, where do we want to go and how to get there?”

Working in the demanding environment of Saudi Arabia has helped shape the Al-Qahtani business and should hold it in good stead as it expands internationally.

“This formula serves our mission which is: wherever you are, whatever your project and time-frame,” he continued. “Whatever your plans, we will serve you everywhere, even in the middle of nowhere; through conducting proactive and consultancy styles, and offering the best package that fits the situation best while keeping the clients in the core of our attention.”

Now there’s a permanent name for portable power: Doosan. Formerly a division of Ingersoll Rand, we’re the product that construction, drilling and mining companies worldwide have relied upon for 140 years.

Known for innovative solutions and extraordinary service, we’re the same superior product as always. The only change is the name.

Same superior product. Brand new name.

DoosanPortablePower.com ©2012 Doosan Infracore Portable Power Scan here to view our new brand video

Find Us on

MOHAMMED JALAL & SONS WLL

BAHRAIN

(+)973 17252606

RAWASEE COMPANY

LIBYA

(+)218 214808947

PICO MACHINERY

EGYPT

(+)202 33369520

MOHSIN HAIDER DARWISH LLC

OMAN

(+)968 24703411 (+)974 44602340

TRISTAR COMPANY

IRAQ

(+)964 7504511420

JAIDAH GROUP

QATAR

ARAB EQUIPMENT TRADING CO. (AETCO)

JORDAN

(+)962 64922800

THE MACHINERY GROUP (TAMGO )

SAUDI ARABIA (+)966 26832216

BAHRAH TRADING COMPANY WLL

KUWAIT

(+)965 1802008

AL-FUTTAIM AUTO & MACHINERY COMPANY LLC (FAMCO) UAE

TRACKSPARCO BACHALANI SARL

LEBANON

(+)961 1891510

(+)971 42135100

News Analysis

Where next for Caterpillar?

It has bought big in the past few years now Cat prepares its big plans for China.

L

ife as the world’s biggest supplier of construction machinery and equipment isn’t as straightforward as it might seem on the outside. After all you’ve only got one place to go.

With the competition intent on nibbling away at its market share in many markets, especially ones where it has a clear numerical advantage such as Saudi Arabia, Caterpillar is facing the mammoth task of having to fight its corner on a number of fronts.

The strategy to this point has been one of consolidating its local presence with new machines – it will launch 64 new machines this year - and considerable dealer support. Caterpillar is the world’s biggest supplier because it managed to balance out its ambition with maintaining close ties with its dealers. The way that it deals with dealers in Peoria is the same as it is in Riyadh.

Instead of reigning back corporate spending during the downturn, the company has been rattling up acquisitions. It has made 19 acquisitions since 2007, which sounds a large figure by itself but is even more impressive when you consider that in the 56 years beforehand it made 17.

While the sectors have been a broad selection, a few dominant themes are apparent.

Cat has bought its way into sectors you would expect such as diesel engines, but it has also been

14 14

CONSTRUCTION CONSTRUCTION MIDDLE EAST MIDDLE EAST

September April 2012 2011

aggressive in the transportation sector. Cat now has a sizeable presence in the rail sector and now has locomotive, system control, automation and maintenance expertise in its portfolio.

The much storied acquisition of Bucyrus as well as other below the radar buys in the area such as UIT (Underground Imaging Technologies), has also given it a strong position in the mining category.

In many ways Cat’s progression in the past half-decade has been a case of moving quickly when the market has shifted. One can only imagine the man-hours that go into studying the regional reports that company must digest on a global basis. Although clearly its close-ties with long-established partners and dealers have also informed its decisions.

Now the company faces its next big decision: to stick or move in China. Cat took the opportunity to buy out XCMG from its Caterpillar Xuzhou JV in 2010 and now cash-rich company has an opportunity to pour yet money into its wholly owned subsidiary.

The construction and mining equipment manufacture, has had a stellar year with its stock up nearly 25% year-to-date after the company delivered record 2011 earnings. Now, the company is again looking to raise money in the Hong Kong bond market to fund its expansion in China. The company has gathered a huge backlog and is

Oberhelman explains his pOlitical pOsitiOn As election fever heats up in the US, Caterpillar’s CEO Doug Oberhelman has found himself at the centre of the debate over how the country supports its domestic manufacturers. In an interview with the revered Chicago Tribune newspaper he revealed his political motivation last month.

“The momentum it seems is that governments around the world want to regulate more and more. We have shareholders, employees and customers to represent. In the debate over clean air for our diesel engines, we had been intimately involved with how those regulations were ultimately written. We were a player. We were listened to and ultimately heard.”

“A lot of our customers will thank me for voicing an opinion for business, for trying to create a business-friendly environment. It’s just part of the territory as one of the largest employers in Illinois.

We have more than 23,000 in the state ... I feel an obligation to all of our constituencies, when things aren’t going the way we think they probably should be going, to speak up. That applies in Illinois or China. I’m going to China Saturday.

“I think in Illinois every single politician knows how bad it is. We have had leadership over a long period — bi-partisan leadership — that has failed its citizens. There are a lot of us who are speaking out on a lot of different things. Being the largest manufacturing employer in the state, that gives me a bit more of an obligation.

“Our sales increase is due to several things.

A better worldwide economy would be at the top of the list. We’ve also worked hard on our investments to increase the amount of products we can get through our factories. We’ll spend $4 billion on capital investments in 2012, most of them on expansions, in order to be able to build more. I think the backlog is a result of increasing business demand.

“Believe it or not, we’re almost up to the fourth year after the recession. We have seen the Asian economies booming in the last three years. We’ve seen South America booming. We’ve seen Africa and the Middle East booming. And that’s more than offset the slower growth in the U.S. and all the problems in Europe. Our footprint is so broad and so wide; we can take advantage of all those economies.”

struggling to raise capacity and complete orders in time, necessitating further investments in this market. This is especially exaggerated for mining equipment. Caterpillar said it won’t be able to deliver on some orders for large mining trucks until 2014.

The demand in emerging economies for construction and mining equipment, coupled with the rebuilding efforts on in Japan after the devastating earthquake, has kept the company working at full capacity, and this is expected to continue for quite some time now.

Caterpillar is focusing on China as its primary market given its size and growth potential. It expects the inland China’s infrastructure to start developing at the same pace as the coastal regions, thus driving demand for its products.

Construction and machinery are the most important business line for Caterpillar, accounting for nearly 59% of its stock value.

Caterpillar has sold US$200 million of offshore yuan-denominated bonds with a maturity of two years at a 2.9% yield, according to a term sheet seen

by Dow Jones Newswires. The bond is believed to have a 2.9%-3.1% yield range, but the company has stuck to the tighter end of this range. This is the third dim sum bond issued by Caterpillar.

CAT issued its first dim sum bond in November 2010, months after Chinese government relaxed

its rules for yuan circulation in Hong Kong.

It helped the company raise CNY 1 billion at 2% yield rate and a maturity of two years. The second offering was made by the company in July last year.

This time, the company raised CNY 2.3 billion by issuing two year maturity bonds with a yield of 1.35%. The dim sum bond market was believed to be dead as there were concerns that the yuan remained undervalued. However, Caterpillar’s successful issue and the higher yield it offers compared to previous occasions shows that the investors are ready to selectively participate in this market amidst concerns that yuan wont appreciate as quickly as before.

Caterpillar Inc said it will increase hydraulic excavator production by 80 percent in China with a new facility due to be completed in 2016.

Caterpillar said in a statement it will begin production of wheeled excavators at Caterpillar Xuzhou Ltd (CXL) beginning in early 2014.

CXL remains the company’s manufacturing flagship in China, Caterpillar said. The company has 17 facilities in China and nine more under construction.

“We are expanding our production capabilities as this market continues to grow,” said Gary Stampanato, Caterpillar vice president with responsibility for excavators.

September 2011 April 2012

CONSTRUCTION CONSTRUCTION MIDDLE EAST MIDDLE EAST

15 15

Heavy Hitter

BADGE OF HONOUR It has been 120 years since Daimler sold its first truck and the company along with Mercedes Benz have come a long way. It also has several decades of experience of operating in the Middle East.

CMME finds out why it has decided that now is the right time to step up its presence in the region?

16

CONSTRUCTION

MIDDLE EAST

April 2012

Keeping the region covered

T

he construction machinery industry has some of the world’s biggest brands circulating in it. Take Caterpillar for example. It may make big, grunting machinery but at the same time can put its name to a clothing and boots range without anyone batting an eyelid. And it’s not the only one. Volvo now has a range of umbrellas and JCB even has a rugged mobile phone among its SKUs (actually for that matter, so too does Caterpillar now).

Take a tour of the many copy-cat (pun not intended) badges at Bauma China and you don’t have to be a super marketing guru to realise that this is an industry where name and image gets you a long way.

It’s bizarre then, that it has taken decades for Mercedes-Daimler to capitalise on its brand strength in the Middle East. It is arguably the biggest seller of heavy vehicles in the Middle East, but you could be forgiven for not knowing it. But this is about to change.

Last month saw the famous German company take centre-stage at the Commercial Vehicles event held in Dubai. It had the biggest stand and its regional CEO kicked off the second day of the event.

This was a new Mercedes-Daimler. One prepared to be bold.

“The Middle East is clearly for us, besides China, Brazil, India and Russia, the number five in the fast growing markets. And we are driving,” says Heiko Selzam, Director, Sales and Marketing of Commercial Vehicles at Mercedes. “Around 150 years ago we invented the truck and today our vision is trucks

for the world. We want to be the number one in the trucks commercial vehicles market. It’s a very ambitious target in light of the challenges that lie ahead, and the strategic foundation for this target has been set up in four key areas.”

“The management of cycles, operational excellence, growth and market exploitation (especially in the Middle East), future product generations.

“When it comes to the management of cycles, the commercial vehicles business is traditionally characterised by strong economic fluctuations of the global economy. These fluctuations are particurly strong in the sector and in the Middle East, the changing exchange rates and the lifecycle of fleets are impacting our business category. We want to balance these fluctuations and remain profitable in the long-term.”

Achieving that balance is key for Mercedes. While its customers are prepared to pay a premium for its famous reliability and cutting edge technology, it is facing mounting cost pressures.

While some of its other markets such as Brazil are served by local production, new trucks in the Middle East are supplied from its plant in Germany.

Daimler AG and Daimler Middle East and Levant opened a Regional Logistics Center for the entire Middle East Region in Dubai spanning over 24000 square meters. Operating since 2001, the RLC Middle East was initially set up for MercedesBenz spare parts, the RLC operations were extended in 2004 to include all MercedesBenz accessories deliveries followed by the integration of services for Maybach and SLR parts.

Today the RLC carries over 72,000 different line items.

The RLC is operating with a highly committed team

and a state-of-theart warehouse. This ensures the best possible services in seven countries including the United Arab Emirates (Dubai and Abu Dhabi), Saudi Arabia, Kuwait, Bahrain, Qatar, Oman and Yemen. Middle East customers benefit from an extremely shortened lead time, operating 6 days a week and continuous improvement of parts availability.

Since 2005, the RLC Middle East is an ISO 9001:2000 and ISO 14001:2004 certified Company from TUV, Germany.

“THE MIDDLE EAST IS CLEARLy FOR US, BESIDES

CHInA, BRAzIL, InDIA AnD RUSSIA, THE nUMBER FIVE In THE FAST GROWInG MARKETS. AnD WE ARE DRIVInG.” April 2012

CONSTRUCTION

MIDDLE EAST

17

Built to perform Grove mobile telescopic cranes Grove all-terrain, rough-terrain and truck cranes are long-lasting and hard-working. High performance features help execute even the most challenging lifting jobs with strength, precision and control.

Our cranes offer the versatility to tackle any project, with capacities ranging from 8t to 450t.

Grove cranes range in capacity

from 8t to 450t

Contact your dealer or visit www.manitowoc.com/cranesdealer

Heavy Hitter

Between April 2011 and January 2012 the Dirham fell 50 fils against the Euro. That may not sound a lot but it means that in those eight months, Mercedes-Daimler built trucks became 10 percent more expensive. Small wonder the company is reviewing its production.

“This means looking at production capacities and flexible working times,” he says, “but also our increasing our global production network to become less dependent on market positions.”

Mercedes work on its operational excellence has seen it try to reduce its fixed costs and in a particularly bold move it is aiming to standardise its designs and move Daimler engines into all its trucks across of its ranges. He says that this will

make the company better able to introduce new technology into its next generation.

“The heavy duty engine platform that we have introduced into the Actros, proves that we have achieved results.”

Turning away from development he outlines his vision for Mercedes in the region.

“We want to expand and strengthen our presence across all manufacturers over six tonnes. This involves opening of new markets in Russia, India, China and the Middle East. We have chosen a specific approach to each market to meet customer’s needs.

At the moment we cannot run a sustainable and profitable presence over 16 tonnes so we will focus on the light and medium ranges of trucks to be exploit the full market potential.”

Despite the squeeze on its production costs, Mercedes-Daimler has continued to develop some bleeding edge technology, particularly with its engine developer. Certainly on paper its Econic NGT, which is powered by natural gas, looks like a snug fit for the Gulf.

“We are also focusing on alternative fuel trucks and I’m proud to present our Econic NGT,” he enthuses.

Marc Legeay, regional sales manager Middle East at Mercedes Benz Commercial Vehicles, says that the Econic has already found a market in Qatar, a market literally fuelled by CNG. However elsewhere a lack of infrastructure and political will is holding back the potential of sales.

“The material is available, and CNG is available from Dolphin’s refinery in Qatar,” he says. “Abu Dhabi has made the decision to have CNG available at petrol stations. Then it’s just a political decision from there.”

The potential in the Gulf at least is with the

April 2012

CONSTRUCTION

MIDDLE EAST

19

Heavy Hitter

Speed kings Mercedes has been one of the biggest names in Formula One for decades and recently EMC Mercedes-Benz authorized General Distributor in Abu Dhabi and Al Ain and flagship company of Al Fahim Group joined Abu Dhabi’s Formula One (F1) activities last year with the launch a F1-themed Mercedes-Benz Service Week officially opened by His Excellency Saeed Abdul Jalil Al Fahim, Chairman of Al Fahim Group, in the presence of high officials and dignitaries including; the German Ambassador, His Excellency Nikolai von Schoepff, Ivo Kapitzki, Vice President & Director of After Sales of Daimler Middle East & Levant (DMEL) and Emirati race car driver celebrity, Saeed Al Mehairi.

“EMC is dedicated to inspiring emerging talents among the local community and we’re delighted that one of the region’s top race car drivers is sharing this occasion with our partners, customers and employees.

Al Mehairi’s presence is an important motivation for talented performance

drivers to pursue their dreams, especially during Abu Dhabi’s F1 season,” said Kamal Rafih, General Manager of EMC. As the core element of the Regional Mercedes-Benz Service Week was ”Safety which also plays a key role in today’s motorsport, the presence of Saeed Al Mehairi is very much appreciated.”

During the event Al Mehairi commented, “I am very excited to be part of this plan. People from my generation need an inspiration to follow and learn from. Safety is the most important element in the motorsport and during our normal day to day time.

For us to build an awareness to young drivers requires a lot of work but that’s why I’m glad to be part of this so I can be able to pass on my knowledge on how we can have fun driving on the track but at the same time to be safe.”

Born in 1987, Al Mehairi is the first and youngest Emirati racing instructor at the Yas Marina Circuit. Currently, he holds a International Automobile

Federation (FIA) International Circuit B 2011 Racing License. Al Mehairi was chosen out of more than 700 Emirati racing drivers to represent the United Arab Emirates (UAE) in Europe positioning him as an inspiration to many talented young Emiratis who yearn to become internationally recognized official race drivers.

EMC’s overall business strategy focuses on customers and prospects in order to ensure their experience with the dealership is not only satisfactory, but exceeds all their expectations.

During the Mercedes-Benz Service Week this year, customers will enjoy a wide range of value-added services, special discounts, great prizes and other surprises.

Moreover, EMC is also strong supporter of road safety and invited two ‘Flying Engineers’, Gerhard Waclaw and Brian Tietge from Daimler Germany to cater to customers’ queries and vehicle check-ups. As a privileged MercedesBenz owner, customers received

municipalities, waste management, fire-fighting and airports, locations where the fuel pumps are not too far away.

“You have to have a certain perimeter of action,” he explains. “We do have this truck running at Doha Airport but it’s with a Euro5 engine, not gas.”

As it plots its next move in the region, Mercedes has three main target markets, Qatar, Saudi Arabia and Iraq. Its ambitions mirrors those of its competitors such as Volvo and MAN Trucks, all of whom have established presences in the markets

20

CONSTRUCTION

MIDDLE EAST

April 2012

a complimentary vehicle safety check, consultations with MercedesBenz experts, and discounts on labor, genuine spare parts, lifestyle collection and accessories – especially the F1 collection available at the EMC Boutique.

or are aggressively pushing their distribution networks forward. Legeay says that Mercedes is confident that its dealer network consisting of companies it was worked with for several decades, could prove to be its strongest hand, alongside an ever-evolving service programme.

“We have always had general distributors for cars and trucks,” he says. “We have been here for over 50 years.”

According to Legeay, it means that when people think of Mercedes they don’t just think of the badge but reliability as well. He describes the Actros V8 as the “legendary truck of the market”, extolling its exemplary record in the region. “You must have seen the Mercedes over 4km million, right?”

Surely there is a downside to this reliability. Why get the new model when your old one is still hitting the road?

“Some people can say it’s a pity, we want fleet renewal. OK, but we need to think about budgets.

This is not a fancy business. If people are happy with a truck they can run for years and years, it’s our best advertisement.”

Returning to the subject of growth, he also returns to potential of the Iraq market.

“They have oil that they need to transport and they have big cities. Our strategy is to go there with a complete service network. We are not the sort of company that can drop a product into market and leave it.

“We will have one partner, the question is to find the right one. That’s why we’re taking our time we don’t want to make a mistake. We don’t have A countries and B countries, if you buy a Mercedes you get everything that goes with it.”

“We are a normal company, we are not arrogant.

At the end of the day an operator would love to buy Mercedes but we have to deserve it. We have to prove we’re the best. That’s the challenge.”

Market Analysis

PIPE DREAMS CMME drills deep into the oil and gas industry.

W

ith strong demand for upstream oil and gas projects key markets in the UAE, Saudi Arabia, Qatar and Kuwait are driving growth for heavy lift machinery and plant, despite setbacks in other regions due to the worldwide slowdown.

Middle Eastern and North African oil producing countries will invest $525 billion on energy projects from next year to 2016.

Gulf nations such as Saudi Arabia, the UAE, Iran and Algeria have increased spending on energy projects for the next five years as current high oil prices are allowing them to resume projects that were delayed because of to the financial crisis, the Arab Petroleum Investments Corp said.

Saudi Arabia will top the list with committed investments of $141 billion, followed by the UAE that is planning to invest $76 billion in that period, according to Apicorp.

Countries in the region can finance the projects on their own as long as the basket of OPEC crudes stays at more than $90 a barrel, it said. Against this backdrop the demand for machinery will increase manifold.

April 2012

CONSTRUCTION

MIDDLE EAST

23

Market Analysis

“WE nEEd To UndErsTAnd ThE LAnGUAGE of PIPE LAyInG ConTrACTors. ThEy don’T sUffEr fooLs GLAdLy, And so WE nEEd To rEAssUrE ThEM ThAT WE knoW ThEIr nEEds.”

Laying it down the line The high price of fuel has become a serious issue that affects the customer as well as your business. Your business needs to run efficiently, your company that deals in fossil fuels; you are going to need many different types of oil and gas industry equipment to be successful.

Many types of your equipment will depend on where you drill, and if it is on land or water. Further, the types of bedrock material that you need to drill through will impact your choice of equipment.

Other types of

24

CONSTRUCTION

MIDDLE EAST

April 2012

equipment are specific to drilling for oil or natural gas. In some cases, fuel companies will outsource for those types of projects.

Depending on your project at hand, you will consider three categories of equipment, the rigging, tools and protective equipment. Oil drilling rigs can be a great investment for your company. In some cases, companies need to commission custom pieces of equipment.

In that case, you will need professionals in engineering, fabrication, machining and more.

The discovery and recovery of oil and gas is still complex and challenging. There are always new emerging issues that defy a smooth production process of oil and gas; these issues pertain to various sectors of the industry, one of which is the facilities and surface assets used for projects. There are constant need for new materials, innovating existing products or modifying and developing technologies or processes in order to sustain the working life of the industry assets and production to more than 20 years.

Improved tax incentives and the support of cash rich national oil companies have encouraged significant investment in the Middle East. The UAE alone will spend $72 billion on oil and gas projects as the country moves forward with a major programme to expand its hydrocarbon output capability to meet growing demand. Currently there are 21 planned grass root refinery projects in this region, which will add nearly 204 million tonnes of refining capacity by 2013.

According to Lars-Göran Andersson of Volvo, with 275,000 km of oil, gas and water pipelines planned or under construction globally, the market has more than doubled in recent years and there has never been a better time for Volvo CE to enter this lucrative, yet demanding, market.

“As important as Volvo’s pipe layers are to winning confidence in this market, it is not pipe layer sales alone that make this segment so attractive. Pipeline projects need machines of all types – and lots of them: a typical contract

Market Analysis

Middle East heading downstream One of the senior partners at global management consulting company AT Kearney has predicted that the Middle East faces a decade of growth as it constructs new facilities to create downstream products.

In an interview ahead of the World Refining Association’s (WRA) MEDW 2012 event in March, Louis Besland said that downstream in the Gulf has a very bright future, driven by strong regional, proven oil and gas reserves and traditional ties with ever-energy hungry Eastern markets.

“Industry development will be characterised by

building value throughout the entire value chain, to boost exports. Looking forward, successful refiners will achieve the right balance of integrating downstream petrochemicals, while maintaining close ties with oil products export markets, through appropriate JV strategy and partner selection.”

Calling petrochemicals integration as a particularly interesting challenge he noted that analysts believe the region could significantly benefit by developing its downstream chemical products.

“But, for chemical players currently

focused on export commodity markets this requires a paradigm shift,” said Besland “To successfully make this shift, acquisitions in new expertise and manufacturing is required to optimize supply chains and effectively manage distant customers requiring tighter compatibility integration with their technologies.

He added: “GCC economies face the challenge of negative net imports of manufacturing goods, propelled by the fact that the imported end-products are based on raw materials originally sourced from the region.

We believe the region can expand its capability to reduce this existing imbalance.

“In ten years, we expect Middle Eastern players to thrive, leveraging their access to feedstock. New capacity developments will be tightly linked to the petrochemical industry for further value added downstream. In addition, growth strategies will be linked to local economic development policies. We anticipate that Middle Eastern companies will build networks through strategic JV’s to better leverage growing East Asia markets.”

can involve 200 units or more. While there are, of course, specialised machines such as pipe layers, welding tractors, line up clamps etc, the majority of units are general purpose equipment that are needed just for the duration of the project.

In 2010, Volvo released its new generation of pipelayers to the GCC market, Andersson says that development is done in tandem with its dealer network.

“Central to the Volvo proposition is offering a complete product offering and the flexibility to offer rental, retail, financing, buy backs and customer support agreements – anywhere in the world. We have gathered a team of oil and gas experts who are 100 percent dedicated to promoting Volvo in this segment – and a multi-million rental fleet of pipe layers that we will supply to customers through our regional and dealer network.

“It is our job to understand the pipeline business, chase the contracts and build global relationships.

It is the dealer’s job to handle supply and support dealers are crucial in delivering our promises.”

Apart from machine performance, there are two additional factors that help Volvo’s ambition of breaking into this sector: safety and environmental.

“A lot of the equipment now on site is old and inefficient. There is a tremendous need for reinvestment in newer, more environmentally friendly and safer equipment. The major oil and gas clients take corporate social responsibility seriously and are starting to demand their pipelaying contractors to improve their fleets.

Volvo’s fuel-efficient new pipe layer range meets the highest emission standards, and will soon be supplied with Stage 3i/Tier IV engines for North America and Europe.”

Safety is also important, he says, with a number of cases of traditional dozer-based side boom-type pipe layers in rollover accidents due to instability or excess loading.

“Convenience is also a factor, as the Volvo pipe layers can disassemble themselves and be quickly converted back into the EC290C and EC460C excavators they are based on. This not only means spare parts are easily available but also gives the machines greater work site flexibility – as well as allowing owners the option of selling the machines into the used market as either pipe layers or excavators at the end of the project.”

He adds: “We need to understand the language of pipe laying contractors. They don’t suffer fools gladly, and so we need to reassure them that we know their needs and can be a reliable partner wherever they are working in the world.

“We have the strategic focus, the expertise, products and services in place - now we just need to convince the marketplace that Volvo is serious about pipelines.”

April 2012

CONSTRUCTION

MIDDLE EAST

27

IT’S SHOW TIME!

CMME Preview

From 22-26 April the Construction Machinery Show comes to Jeddah, CMME gives you your essential guide to visiting.

April 2012

CONSTRUCTION

MIDDLE EAST

29

CMME Preview

J

Date 22-25 April 2012

eddah is now firmly a proverbial boom town.

The Kingdom Tower development grabbed the headlines, but projects are in the pipeline across the city. The timing for the Construction Machinery Show, which takes place on 22-26 April at the Jeddah Centre for Forums and Events couldn’t be better.

Located on the Red Sea, Jeddah is not only the biggest city in the south-west of Saudi Arabia but also the principle gateway to two of the most holiest places in Islam Medina and Mekkah. Home to the largest sea port on the Red Sea, the city is a major commercial hub and has a population of 3.2 million inhabitants.

With a history dating back 2,500 years, the port has helped make Jeddah one of the most diverse and cosmopolitan cities in the Kingdom. It is also a major reason why the city is becoming one of the most important hubs for the construction industry in the Middle East.

Before we get to the Construction Machinery Show itself, it’s worth looking at what’s happening to the city over the next few years. Kingdom Tower was given the official green light by the city’s governing body last month, but that is just the start.

Jeddah’s real estate market is benefiting from

Show Times 5-10pm daily Location Jeddah Centre for Forums & Events, Kingdom of Saudi Arabia Co-located with Saudi Building & Interiors Exhibition Organised by CPI Website www.constructionmachineryshow.com

KSA’s development plans

4.1

%

real growth in the Kingdom in 2012

30

CONSTRUCTION

MIDDLE EAST

April 2012

130

$

7.2

%

b

financial stimulus plan by the government.

propertry building growth 2011-2016

the government’s recently announced $130 billion financial stimulus package and massive public sector infrastructure investments.

With residential prices rising because of demand the Jeddah Municipality recently released an additional 25 million sqm of land offered opening up potential large-scale residential developments.

The municipality hopes that by expanding the supply of land available for development it can address inventory and affordability issues and meet the growing housing demand from both the local and expatriate population.

The Jeddah market will be further supported by the government’s increased spending on housing and the large capital injection into the Real Estate Development Fund.

As CMME magazine covered last issue (Boom Time Saudi Arabia, pages 27-35), there is a 20-year redevelopment programme in place to re-developed the city’s central and historic districts. In addition to this there are other mega commercial projects underway such as the $27 billion King Abdullah Economic City and the $13 billion Jeddah Hills. Jeddah Islamic Port is also benefiting from the Kingdom’s $2.3 billion port development fund.

36.7

$

b

investment in 1,200 new schools and colleges

16.3b

$

investment in 92 new hospitals

22-25 April 2012 Jeddah Centre for Forums & Events Kingdom of Saudi Arabia Show timings: 5-10pm daily

CrAwler CrAnes Mobile CrAnes Tower CrAnes GrAders loAders CoMpressors Crushers Fork liFTs skid sTeers pilinG riGs exCAvATors ACCess plATForMs ...

With so many projects in the pipeline, the development of Jeddah, Saudi Arabia’s second largest city, is at a crucial phase. Over $54 billion will spent on transforming it into a world class city, however that could come at a cost.

Traffic is already a major discomfort for city inhabitants and is a major concern as the city expands, despite $800 million being put aside for constructing flyovers and underpasses in an effort to reduce traffic. Reshaping the city’s roads is expected to continue until 2016.

Jeddah is also unlikely to escape the cost pressures that threaten construction with the Kingdom developing on a national scale.

Hani A Kayal, CEO of Hadia Abdul Latif Jameel, told the Saudi Gazette last month that the master plan for Jeddah should be revisited advising that there should be “total review of policies” relating to the planning, design and construction of buildings and related infrastructure, to include inflationary factors.

The ShOW Despite these concerns, Jeddah’s expansion will continue apace and the city continues to attract the construction machinery industry’s attention,

$

40b

estimated investment in ‘smart buildings’ by 2018

1

$ b

investment in four new universities

8.3

$

Co-located with Saudi Building & Interiors Exhibition

b

investment in 6,400km of new highways and roads Note: Figures from KSA’s Ministry of Finance

Organised by

www.constructionmachineryshow.com April 2012

CONSTRUCTION

MIDDLE EAST

31

CMME Preview

making April’s Construction Machinery Show a timely addition to the event calendar. The event itself will take place alongside the Saudi Building Industries Exhibition (SBIE), hosted by Al-Harithy Company for Exhibition (ACE). In terms of floor space (20,000sqm), the event is the largest heavy construction event in the region and will bring manufacturers, distributors and buyers together.

Speaking about the joint venture with SBIE, Raz Islam, sales director, CPI said: “Construction Machinery Show focuses on heavy equipment and machinery in the construction sector as well as the service providers that cater to this segment. This is why we wanted a brand name that specifically reflected our commitment to this section of the industry.”

The exhibiTors There will be a wide variety of products on show ranging from heavy equipment to machinery and generators. Service providers will be exhibiting at the event. There will also be a demonstration area for visitors to get a real idea of the capabilities of the big machines. This event is dedicated to the construction machinery sector and will provide an invaluable platform for customers in the Arab world.

Among them will be Hyundai dealer, Mohammed Yousuf Naghi Motor. Omer Mahmood B Al Mashjiri, Market Analyst, Commercial Vehicles at the company said visitors can expect new “additions to our product line with products serving the construction application.”

Hyundai will be launching a new range for Saudi Arabia, and for Al Mashjiri, the show represents an opportunity for visitors to see its products side-byside with its competition.

“It’s a good place to showcase your product to the selected set of audience,” said Al Mashjiri.

Mashjiri estimates that within Saudi Arabia the Western Region is now the largest in terms of commercial vehicles sales.

32

CONSTRUCTION

MIDDLE EAST

April 2012

The venue The Jeddah Centre for Forums & Events is a well-established and purpose built exhibition venue in Saudi Arabia.

Known for its high standards of service and sophisticated infrastructure, set-up and owned by the Jeddah Chamber of Commerce and Industry, the exhibition centre is a multi-functional venue which offers around 40,000 sq metres of total area.

This state-of-the-art facility has an airconditioned event space of 10,000 sq metres including a modern conference hall, restrooms, a wellfurnished business centre, cafeterias, mosque, car parking facility for visitors, exhibitors & VIPs and many more such facilities.

With its convenient location, the Jeddah Centre for Forums & Events is advantageously situated from the nearby business centers, government offices, malls and government offices on Madina Road.

Directions from Jeddah airport to The Construction Machinery Show:From the airport head and follow the direction for Al Madinah Al Munawarah Road.

Drive on Al Madinah Al Munawarah Road for approximately 4km. On your right you will see the Hira Souk. You have to turn left and left again (do a U turn) and drive back towards north on Al Madinah Al Munawarah Road for 300 metres and the Jeddah Centre for Forums & Events will be on your right.

“It house around over 40% of the total population, which means ever increase demand of infra structure developments,” explained Al Mashjiri. “It is a fairly competitive and dynamic market with three most promising economic city projects underway. Plus there is also the much talked about Haramain Railway Project (the 445km high speed inter-city railway that was announced last year).”

Mashjiri says that the company has seen its sales increase as the market continues to be boosted by government investment.

“The sales in comparison to FY Q1 2011 have picked up in the current quarter,” he said. “We are benefitting from the ongoing infrastructure boom, increase in the distribution pattern of goods, Increase sales in the suburbs other small city across KSA.” Mohammed Yousuf Naghi Motor is looking to improve the brand identity of Hyundai Trucks across the Kingdom. Visitors to the show will be able see the South Korean manufacturer’s HD 600 L Tractor Head which has been designed for the Middle Eastern market for long haulage applications.

There will also be the HD 370 S 9m3 mixer, Mashjiri explained is designed to be competitive with European brands with “better specs and price”. He added that HD 370 S 18m3 dump truck will also be on the stand.

One of the biggest suppliers of machinery in the Gulf, Saudi Diesel, will have a full complement of equipment when it exhibits at the upcoming Construction Machinery Show in Jeddah.

Saudi Diesel distributes machinery for well-known brands such as Doosan and Everdigm in the Kingdom but the company is anticipating a boom in demand in the Western Region over the next few years.

“The Western Region has fast-growing demand, especially with the construction rebuilds that is going on for the last two years,” said Ahmed Alkooheji, IT & PMO Manager at Saudi Diesel Equipment. “Generally speaking higher oil prices mean more construction

22-25 April 2012 Jeddah Centre for Forums & Events Kingdom of Saudi Arabia Show timings: 5-10pm daily

products this year for all regions, which means the market demand will keep increasing. We want a piece of the cake, and we hope for a bigger piece every year.”

The emphasis at the Saudi Diesel exhibition will be on its brand partners, he added.

“We will continue to focus on our strategic alliances with our Korean Partners, Doosan and Everdigm, in addition to adding a few more construction-related accessories and products, like the newly acquired distributorship agreements with Montabert Rock Drills, Meka Concrete Batching Plants, etc.”

He continued: “We will show variety of equipment and ¬we will issue promotional deals for equipment that are displayed and Parts Discount Vouchers and a chance to win in iPhone/iPad. We will have our sales engineering answer any question and our principles will be there from korea to answer any technical questions.”

Putzmeister and Terex dealer Medco says the Western Region is at the hub of Saudi Arabia’s ambitious plans to develop the Kingdom “Saudi Arabia plans to invest billions in infrastructure, health and education projects; the Western region currently remains the main hub of major projects such as: Makkah and Madinah high speed rail link, Rabigh power plants, King Abdullah economic city and Kingdom Tower,” according to Medco spokesperson Rany.

“With all the upcoming/existing major projects in KSA and with the full backed up support by our principal Medco intend to capitalise and be a major supplier of all types of earth moving, construction equipment, etc.”

During the show, Medco will exhibit some of the best known products in the industry. Not only will visitors to the event find products from concrete pump leader Putzmeister and ranges from Gehl, Terex and Genie, they will also be able to see equipment that will be essential for the work currently underway in the country.

COnCRETE PUMPS CEMEnT MIxERS GRAbS TRUCKS FROnT SHOVElS EqUIPMEnT CHERRY PICKERS ROllERS nAVIGATIOn SYSTEMS bUllDOzERS AnD MORE...

Co-located with Saudi Building & Interiors Exhibition

Organised by

www.constructionmachineryshow.com April 2012

CONSTRUCTION

MIDDLE EAST

33

CMME Preview

KSA infrastructure spending $40bn in 2011 Machinery suppliers in Saudi Arabia helped themselves to share of $40 billion spent on infrastructure in 2011.

The massive development projects in Saudi Arabia constantly require the best and most reliable resources, particularly industrial machineries and equipment.

As the most important regional event of its kind, Machinex Arabia

2012 aims to support the advancement of Saudi Arabia’s industrial sector and reduce the Kingdom’s reliance on imports by creating national industrial alternatives,” said Walid Saad Wakid, vice president of Al-Harithy Company.

He added: “In light of the rapid expansion of the various industry sectors in Saudi Arabia, and due to the surge

in construction and manufacturing activity, demand for machineries and equipment has been increasing steadily, pushing local companies and contractors to look for innovative products and solutions that would give them a competitive advantage.”

Wakid noted that the massive development projects in Saudi Arabia constantly require the best and most reliable

resources, particularly industrial machineries and equipment According to estimates, investment in infrastructure projects in the Kingdom topped $40 billion in 2011.

This amount is expected to increase sharply over the next decade, and the total amount to be invested in Saudi Arabia in infrastructure in 2020 is estimated at a staggering $500 billion.

Compaction and paving equipment from Swedish player Dynapac will be on show as will compressors from US manufacturer Sullair, lighting towers for applications in the construction mining, rail, airport and event industries from Italy’s Towerlight, and Sweden’s Sandvik’s tools for metal working, advanced materials technology and mining and construction.

Rany added: “At the exhibition, Medco, together with our principal experts, will highlight the benefits of our latest equipment that it has within its range.

One big factor that encouraged Medco to participate at the Construction Machinery Show was the fact that the show will provides participants with an invaluable platform to demonstrate the latest model/technology of our product range.”

Liugong’s recently opened parts and service hub in Dubai has given it the platform to grow its presence in the region, says the company’s regional head.

According to York Liang, president of Liugong Machinery (Middle East), the company is pleased with its progress in the GCC since first coming to the region seven years ago.

“More and more customers are confiding in Liugong and the coverage of our network is improving,” he explained.

A year on from the start of the Arab Spring, Liang believes the region has reached a turning point in its development.

“The market recover kindly after the movement,” said Liang. “Most of the governments in the MENA

region realise that the improvement of people’s standard of living is critical to keep the society stable. So they will invest the infrastructure, house to improve the employment.”

Liang said that Liugong is consequently adapting as the region embarks on a new era. The company exhibits at the Construction Machinery Show with an impressive line-up of wheel loaders, excavators motor graders, forklifts, rollers, backhoe loaders, bulldozers.

“Visitors can learn more about Liugong and our reasonable and reliable equipment which can make their businesses successful post-crisis,” he commented.

Liang is particularly enthusiastic about the Saudi Arabia market, and area hosting the Construction Machinery Show.

“Saudi is the biggest market of construction machinery,” he said. “There are a lot projects in western region. So the western region is a key market of construction equipment.”

Kamran Naseem, sales and marketing manager, Abdullah Hashim Co. Ltd, says that like its fellow exhibitors its decided to participate at the event to capitalise on the market’s boom.

“The growing Saudi construction industry and imminent strength in market potential for power products and construction equipment has made us participate in this year’s Construction Machinery Show,” he said. “We also desire to Increase the brand awareness of new AHCL products in the Saudi market.”

He continued: “The Saudi Arabian economy is booming, especially the building and construction segment. Many mega projects are lined up in Western Region and this will have a very positive impact in economic growth.”

Naseem feels this year is a good opportunity to introduce new products into a variety of industries and, “to make a growth in the sale of power products and construction equipment.”

Abdullah Hashim Co. Ltd. Is well known for offering a class of products in Power and construction Industry. Naseem said the company will be showing a range of generators with, “both silent and open type”, electric types, industrial and diesel engine driven portable compressors and pumps and boosters for various applications.”

For more information or general enquiries, please e-mail: info@constructionmachineryshow.com

34

CONSTRUCTION

MIDDLE EAST

April 2012

22-25 April 2012 Jeddah Centre for Forums & Events Kingdom of Saudi Arabia Co-located with

Saudi Building & Interiors Exhibition

The region’s largesT heavy equipmenT show hosTed in Jeddah We’ve listened to the industry and created an event with the biggest names in construction machinery combined with the Arab world’s most prominent players. Distributors and dealers are key exhibitors at the event, and only at the Construction Machinery Show will you find the huge variety of heavy equipment, machinery and generators that will be vital in building a bright future for the GCC. Co-located with SBIE, the Saudi Building and Interiors Exhibition, the Construction Machinery Show takes place at a location that is at the very heart of Saudi Arabia’s booming industry.

Jeddah is primed to become one of the most important cities in the region and this is your chance to build your business in this exciting market.

Gold Sponsor

Official Media Partner

Power and Lighting by

We will be in Jeddah this April. Will you?

Find out more. Visit www.constructionmachineryshow.com ORGANISED BY The Construction Machinery Show and Construction Machinery Middle East and their entities are registered trademarks.

The Construction Machinery Show is held alongside the Saudi Building and Interiors Exhibition under the patronage of the Saudi Ministry of Municipal and Rural Affairs. © 2011 Corporate Publishing International. All rights reserved.

concrete@saudidiesel.com.sa

Special Report

TelemaTic Transmission There is now plenty of choice when it comes to telematics and fleet management kit but can you make it pay for itself?

r

oss Davies of telematics system provider Fleetboard finds it hard to hide his frustration at the slow pace of adoption of telematic technology in the Middle East.

“From my experience in the Middle East, when people are looking for a telematic system, they are asking for a tracking system. They just want to know where their trucks are. It can show where your trucks are but what are you going to do with that information?”

Vehicle Telematics is the process in which computerbased information is taken directly from a vehicle and made available to an end user in an easily readable form, Davies says, “virtually anywhere, anytime.”

April 2012

consTrUcTion

miDDle easT

37

Special Report

Top Ten Tips for keeping your fleet green Keeping your fleeT green is essenTial if you wanT To do your biT for boTh The environmenT and your boTTom line.

1 Push for vehicles with low CO² emissions.

2 Evaluate alternative fuel cars to see if they might benefit your fleet.

3 Ensure vehicles are regularly serviced – poorly maintained vehicles have higher toxic emissions and fuel consumption.

4 Identify opportunities to reduce mileage by recording & analysing business travel.

5 Record & analyse individual fuel consumption to encourage fuel efficient driving.

6 Promote safe, economic and

38

CONSTRUCTION

MIDDLE EAST

April 2012

environmentallyfriendly driver training.

7 Ensure mileage reimbursement rates are environmentally sensitive and do not encourage drivers to make excessive journeys.

8 Provide access to web sites and route planners to minimise vehicle mileage.

9 Promote satellite navigation and telematics to help drivers avoid congestion and use the most efficient route to reach their destination.

10 Review arrangements for tele/video conferencing as an alternative to business travel.

Using state of the art technology, a vehicle can be positioned via GPS and specific data is sent via GSM/GPRS. It is received and translated by a service center, ensuring secure and accurate processing of data. It is then forwarded to the client and made viewable on a web based interface.

As advanced as it sounds, the technology behind telematics continues to sprint ahead. Today it is possible to not only track where your machinery and vehicles are at any given time but also go deep into how that vehicle is used, even how an individual driver has a nasty habit of frying brake pads when he is kilometres from home base.

Davies argues that the purpose of installing such systems are manifold. They empower the fleet and plant manager to take greater control over the optimal efficiency of a fleet by reducing maintenance costs and downtime, lower long term running costs, increase productivity, reduce the fuel consumption of kit, and ultimately enhance driver/operator performance, skill and motivation. Although the systems have been in widespread use in some regions for many years,

the Middle East remains someway behind. It remains a hard sell for companies like Fleetboard, even when they are integrated into companies like, in Davies company’s case, Mercedes’ range of trucks.

While we meet in Dubai he tells me that the company’s biggest market is one of the region’s most upwardly mobile.

“Right now Qatar is our single biggest market.

About 70% of our business is there,” he says.

Among the Gulf states, Qatar has proven to be the most willing to look at the technology. He tells me that the company’s using it so far tend to be multinationals, European-led companies.

Given the energy fuelled economy in the state,the preconception might be that these would be oil and gas organisations but Davies says that construction firms are among the most advanced when it comes to telematics utilisation.

“In Qatar, it has been ready mix, transportation, leasing – so Caterpilllar and companies like that – companies that have the Actros.”

When it comes to adoption, it seems that some countries are more advanced than others.

“The key to Qatar is the level of education,” he explains. “The level is much higher than it is in, say, Saudi Arabia, which helps us massively. Fleetboard is not a system that is not just a tracking system like a lot are. It is extremely complex and you need a great deal of focus to get the most out of it.”

He stresses that the way information is delivered to operators is simple but what you can do with the data is far more sophisticated to some of its competitors.

“Take performance analysis,” he says. “I can see the brake movement on the pedal, how fast the driver is pressing the accelerator, how hard they are using the brake. Over the course of the day I can see how that vehicle is being used.”

Essentially the system provides intelligence on individual driver habits and, across a fleet, separates the good drivers from the bad.

“I can see how long your driver spends on the red line of the RPM,” he continues. “Which is linked to fuel consumption, overhauls of engines over two years, clutches, it’s linked to maintenance, etc. In Qatar, we have a client that has saved 25% of their operational costs of their workshop.”

While he is unable to reveal who the client is, he says that the data it is gathering proves that in fuel cost alone, the savings can be as much as 10%.

“we can pretty much guarantee that.” he adds that there is even more potential for savings in the middle east than elsewhere: “in this region you can even higher because the nature of the drivers here. in europe the average per hundred is 40l per 100km. here it might be 80l or 90l as drivers don’t know how to make the best of their vehicles.” in a region where driver skills are not always a help and more a hinderance to fleet management he argues that they are one of the quickest, easiest solutions to improving efficiency and the bottom line.

“On one trial we ran on a unit installed on the Actros, a truck was completely written off within two days,” he explains. “the driver had turned over the truck by going round a corner too quickly.” you would think being linked to mercedes and providing cutting edge performance analysis and deep data gathering, that fleetboard would be more expensive. And you’d be right, although davies argues that the virtues for customers, including a high potential for return on investment, gives it an edge over competitors. “it is four times as expensive,” he says without drawing a breath. “so if they’re (competitors) are selling at 3000 dirhams, we’re selling at 10,000.” it’s a high premium, then, presenting operators with a choice. davies argues that when you look at the benefits over time plus the potential servicing and maintenance savings then the argument becomes compellingly narrow. “we’re at such an early stage of gps and vehicle management systems in the region that people have an idea of wanting to buy a vehicle management system and they believe what they want it for, but we still lay the foundations in the market to show how it can be really used.” while greener and more productive fleets should be the ultimate aim of managers, telematics and tracking also raise the possibility of improving the safety of vehicles.

Ajay narain, general manager, leaseplan, says that having the technology now means that operators have a greater duty of care for other road users. he argues that the increased amount of technology in the cab should distract drivers from concentrating on the road ahead. “you can train the drivers to make sure they are driving better and disciplined. it’s all about the

drivers learning what to do and what not to do. And this is particularly relevant for commercial vehicles,” he says. “the return of investment provides a powerful argument for telematics, but they should never distract the driver.” in some places like oil fields in the region vehicle tracking is now a mandatory requirement and he says despite his own concerns over ensuring that operators get the balance right between gathering data and the driver, that “it is becoming a necessity. it is destined to be a substantive part of the vehicle and driver management in the future.”

“On One triAl, A truck wAs cOmpletely

written Off within twO dAys. the driver hAd turned Over the truck by gOing rOund A cOrner tOO quickly.”

April 2012

CONSTRUCTION

MIDDLE EAST

39

Special Report

Volvo’s Swedish truck paintshop is one of the greenest ever built. CMME goes inside to see how they do it.

A pAint job H

aving cut the fuel consumption of its vehicles over the past few decades, Volvo Trucks is now improving the environmental footprint of its facilities. With reduced energy and paint use and lower emissions of solvents, its northern Swedish paintshop is the most environmentally sustainable unit of its kind in the world. Even so it can offer customers more than 850 colours to choose between.

You need about 20 litres of paint for a single truck cab, and each cab must then be baked in an oven to harden the finish. Multiply this process by tens of thousands of vehicles each year – not to mention the heating and cooling needed for other parts of the paintshop – and it becomes clear that such a facility could potentially have a huge impact on the environment in terms of materials and energy.

But with heat from trash, cooling from nature and paint consumption nearly halved, Volvo Trucks’ paintshop in Umeå, northern Sweden, has become a shining example of how smart thinking can shrink the environmental footprint of a major industrial facility.

Every stage of the painting process has been mapped, right down to the smallest detail. Everyone has been encouraged to come up with suggestions and ideas, and major investments have been made. The results are impressive. Between 1999 and 2008, energy consumption was reduced by 30 per cent. This success is even more remarkable in view of the fact that the amount of painting being undertaken has increased significantly during the same period, partly because of the fact that plastic components that were previously painted in Belgium are now painted in the Umeå paintshop.

“When components are not painted in the same place, it’s incredibly difficult to make sure they are the same shade as the rest of the cab. That’s why we chose to bring them here,” explains Hans Venngren, Volvo Trucks’ global process manager for surface treatment.

Energy savings have been achieved by re-using the air in the spray booths and at the plant. The air in the plant is used as incoming air in the painting process, while around 75 per cent of the air in the spray booths is re-used. As a result, the need for air brought in from outside has been dramatically reduced.

Emissions down, invEstmEnts up

For many years now, staff at Volvo Trucks’ paintshop have been focusing on reducing the emission of solvents into the air and improving energy efficiency.

40

CONSTRUCTION

MIDDLE EAST

April 2012

FuEl From wastE

Improved operational planning, such as turning off machines when there are gaps on the production line,

41,000 the number of mwh by which the volvo trucks paintshop in umeå reduced its energy consumption between 1999 and 2008.

Special Report

Top-ten colours Even though the Volvo Trucks paintshop in Umeå has more than 850 colours to choose between, it goes without saying that not all of them are used that frequently. Here is the top-ten list:

1. Winter White 2. China Red 3. Signal Yellow 4. Ruby Red 5. Volvo Blue 6. Cream White 7. Royal Blue 8. Clean White 9. Gentian Blue 10. Indian Red

has also helped reduce energy consumption. Other energy-saving measures include the installation of energy-efficient electric motors.

“When we started jointly painting the plastic with the cab, the temperature in the paint-hardening ovens was cut by more than 50 degrees and this naturally reduced the need for energy,” says Venngren. “Since we required lower temperatures, we were also able to switch from liquefied petroleum gas (LPG) to district heating to heat the ovens.”

District heating – fuelled in part by converting domestic waste into energy at a nearby power plant – has also replaced oil in the heating process and the remaining LPG in the afterburning system is now being replaced by environmentally friendly dimethyl ether (DME) produced from biomass.

What a cool idea!

Paint consumption Paint consumption was reduced from 34 litres per cab in 1999 to 20.2 litres in 2008, a reduction of 41 per cent. When the recently introduced painting of plastic components is included, the reduction

42

CONSTRUCTION

MIDDLE EAST

April 2012

in paint consumption will be 44 per cent.

This corresponds to savings of 1.4 million litres of paint and solvent which will not need to be produced, transported and handled.

One of the most spectacular energy savings, however, comes from the plant’s cooling system. The Umeälven river flows just outside the plant and under it there is an underground river that is always cold, regardless of the season. This cold water is pumped through a twokilometre pipe system into the pipes at the plant.

“We then use the water in various cooling systems,” says Venngren. “This has enabled us to replace many of the cooling machines that used refrigerants such as CFCs*.”

The paintshop has been modernised and production has been streamlined in several different phases and, as a result, the use of paint and solvents has been significantly reduced, together with emissions into the air. In 1988, these emissions were approximately 70 grams per square metre of cab surface painted.

“The corresponding figure today is less than 10 grams, which is a fair bit below the EU’s limit of 55 grams per square metre. Even if we still have some way to go, we are still really satisfied with the work we have done,” says Venngren.

While it is its environmental performance that has attracted attention, the Umeå paintshop is also remarkable for the sheer range of colours it is able to apply for truck cabs.

“We are able to comply with virtually any customer request,” says Denny Westerlund at Volvo Trucks’ communications department in Umeå.

As a somewhat extreme example he cites the case of a customer visiting the plant to order his new vehicle, accompanied by his wife. When the customer was asked what colour he wanted for the cab, he shrugged and turned to his wife. A truck driver herself, she hesitated for a moment before holding out her painted nails and saying: “I want this colour.”

“No sooner said than done,” says Westerlund. “They took a sample of her nail polish and then started running tests to reproduce it. In the end she got a cab that matched her nails. This gives some idea of what we can do.”

Volvo Trucks takes great pride in the massive range of colours available at its Umeå paintshop. The palette extends to some 850 hues, tints and shades, which means that customers are certain to get the exact match for their livery or existing fleet. Winter White may be the most-chosen shade among Volvo Trucks’ customers, but green will never go out of style. *CFC stands for ChloroFluoroCarbon compounds, also known as freons.

A Product of Hard Work

BAHRAIN:

+973 1770 0008

OMAN:

+968 2470 3844

SAUDI ARABIA:

+966 3898 4045

KUWAIT:

+965 2483 0384

QATAR:

+974 4455 8888

UAE:

+971 4 338 5461

For other countries, please find your local JCB dealer at www.jcb.com

Total Innovation. Maximum Support At JCB, we’re totally committed to provide you with a range of tailored solutions that combine Innovation and first class Dealer support. Our understanding of your industry and the vast array of products & services we offer will undoubtedly deliver better performance, efficiency, productivity, reliability, versatility and real savings that will make your business more profitable and competitive.

Go to our dealer locator to experience our innovation and first class dealer support. www.jcb.com

Legislation

GettinG back on track F

Ahmed Bahrazyan explains why Dubai’s RTA needs to take the lead to make not only the UAE but the region’s roads safer.

ew federal or state authorities in the Middle East can be as progressive as Dubai’s Rail and Transport Authority.

A few years ago, the city was threatening to grind to a halt with commuter and heavy vehicle traffic clogging the streets.

The city’s rapid growth meant the city was ill-prepared to handle the volume of traffic, especially along the Sheikh Zayed Road, where much of the development was taking place.

The Rail and Transport Authority, better known to Dubai’s population as the RTA, was tasked with clearing the bottleneck.

To manage it, the RTA ventured into the unknown, scoring a number of firsts for the region including the introduction of controls of vehicles on main trunk routes during peak hours, introducing Salik, an automated toll system for its roads, and most famously the Metro system which has taken on much of the burden of commuter traffic along the Sheikh Zayed Road.

While construction and development has slowed down in the Emirate, the RTA feels that it still has significant obstacles to overcome to control traffic and ensure a fair deal for fleet and plant operators.

Ahmed Bahrazyan, the RTA’s CEO is remarkably frank about the size of the task ahead and the difficulties of being an empowered forward-

44

CONSTRUCTION

MIDDLE EAST

April 2012

thinking agency operating within the Federal system that governs Dubai and the UAE. “We are responsible for the registering and the servicing of vehicle in Dubai, and this is where we have done a great deal of work over the last years,” he says. “We’ve been trying to simplify the interaction of commercial organisations in terms of managing their fleet operations. From a legislation perspective, the government comes up with legislation with the aim of achieving a specific goal. And for commercial vehicles this has been aimed at road safety.”

He says that when dealing with legislation coming down from the government the RTA has to strive to find a balance that still looks after the interest of industry.

“The challenge in striking that balance is making everybody happy. Ultimately you don’t make everyone happy but you try your best,” he admits.

In the UAE legislation and regulation is introduced in two ways: top down from government and a bottom up process. The hugely progressive RTA frequently finds itself pushing up but is often restrained as the UAE government strikes its own balance of ensuring all the emirates can comply with its rules. The UAE is a fusion of seven emirates, each with its own strong identity and rules, and what works for Dubai may not always apply to, say, Fujairah.

The rules of the road If vehicle safety practices are not observed at your site, you risk being pinned between construction vehicles and walls, struck by swinging backhoes, crushed beneath overturned vehicles, you risk being struck by trucks or cars.

How do you make sure your trucks are safe both on and off the road?

Check vehicles before each shift to assure that all parts and accessories are in safe operating condition.

Do not drive a vehicle in reverse gear with an obstructed rear view, unless it has an audible reverse alarm, or another worker signals that it is safe.

Drive vehicles or equipment only on roadways or grades that are safely constructed and maintained.

Make sure that you and all other personnel are in the clear before using dumping or lifting devices.

Lower or block bulldozer and scraper

blades, end-loader buckets, dump bodies, etc., when not in use, and leave all controls in neutral position.

Set parking brakes when vehicles and equipment are parked, and chock the wheels if they are on an incline.

All vehicles must have adequate braking systems and other safety.

Haulage vehicles that are loaded by cranes, power shovels, loaders etc., must have a cab shield or canopy that protects the driver from falling materials.

Do not exceed a vehicle’s rated load or lift capacity.

Do not carry personnel unless there is a safe place to ride.

Use traffic signs, barricades or flaggers when construction takes place near public roadways.

Workers must be highly visible in all levels of light. Warning clothing, such as red or orange vests, are required; and if worn for night work, must be of reflective material.

“We are known throughout the UAE as introducing our own legislation, sometimes raising it up to federal level where it is adopted by the rest of the country, but not always,” he explains. “Dubai often has its own legislation. However as people start thinking more about it, at least in terms in terms of vehicle registration, we are noticing more legislation is coming from top-down and the easier it is becoming for us to implement it. It also becomes easier for industry to understand the rules and reduce confusion in how they are implemented in the UAE.” Dubai remains the only emirate where commercial and heavy vehicle operators register with a licensing organisation like the RTA, elsewhere it is handled by the police. According to Bahrazyan this has created a gap between what is expected of operators within the country.

“We don’t like to talk about confusion, but we do hear more about it from industry. Especially when you are talking about commercial organisations moving vehicles across the country and the way you license in Dubai (with the RTA) compared to elsewhere you license with the police. You have difficulty in dealing with different authorities and organisations.”

Licensing by the RTA is a relatively recent requirement in Dubai. Starting in 2008, the past four years have been a learning a curve in how the organisation can introduce new initiatives as well as integrating with the police’s own policies.

“What makes legislation even more difficult to manage is that there are many players involved,” he comments. “We still have to function within law enforcement and have a lot of interaction with the police. There is one challenge of co-ordinating

April 2012

CONSTRUCTION

MIDDLE EAST

45

legislation

“This is A significAnT reducTion in A shorT Time. however we’re sTill noT hAppy wiTh ThAT And we wAnT To reAch The level of europe. in order To do ThAT we hAve To be bold.” with industry but another challenge of operating within government itself.” he explains the number of layers of authorities that govern the roads. There is not only the police and the rTA but also the public prosecution which is responsible for enforcement. At the federal level there is also the ministry of interior.“They have a big say in traffic law and how it is implemented,” he comments.

As well as the ministry of interior there is also the Transport Authority that pre-dates the rTA by two years. normally when an order is issued by them on behalf of the government, these become by-laws that have to fit within individuals emirate’s legal framework, he explains.

“This is where it becomes a little bit tricky,” he says. “every organisation implements the law, let’s say the essence of the law, at different levels. This would be the result of a different understanding of the law, dubai may have a 5% difference with Abu dhabi, for example.

“There is, shall i say, also healthy competition between the different cities in the uAe, and everybody wants to attract companies by making the rules easier for them. it’s not very difficult for a transport company in dubai to register vehicles in

46

CONSTRUCTION

MIDDLE EAST

April 2012

ras al Khaimah or Abu dhabi, the owner just needs a branch in that emirate.” he continues: “The vehicles are going all the way through the country; the police implement fines differently, the standards of testing and registration are different. what we’re trying to do is reduce that level of confusion.”

To achieve this, the rTA is preparing a set of initiatives to make the rules of the road much more straightforward. echoing the lead from the government, the rTA is continuing to develop regulation on road safety. Although commercial vehicle traffic through dubai is more tightly controlled than ever before bahrazyan says it is still a frustratingly big contributor to accident rates. “we want to achieve safer roads,” he states.

“Around the world commercial vehicles contribute a small percentage to the overall fleet of vehicles in countries and cities, but a big contribution to accidents. And normally the consequences of their involvement is quite big too, resulting in deaths and major injuries.” bahrazyan says it is imperative that industry supports government in terms of maintaining these vehicles to ensure they are safe to be on the road. “when the rTA was founded in november 2005, dubai had a record of 21 deaths per 100,000 population from road accidents. compare that to the uK or sweden where the number of deaths was 4 or 5 per 100,000.” it was a huge gap, but he says initiatives over the last five or six years have successfuly lowered the rate to 8 deaths per 100,000 population. in many ways it is an example of how the rTA and the government can work together to introduce effective rules that benefit all.

THE COLOUR OF

Speed does kill Studies show that many accidents take place in uncritical traffic situations and good weather conditions due to driver distraction, drowsiness or illness.

Approximately 30 percent of all accidents in Volvo Cars’ statistical accident database are accidents with an initial road departure.

About 75 percent of

these occur on roads with speed limits of 70 km/h or more.

High speed is a contributory cause behind a significant part of all fatal road accidents.

European Road Safety Observatory (ERSO) studies show that speed is a contributing factor in 30 percent of all fatal accidents. A Swedish Road Administration

“This is a significant reduction in a relatively short time. However we’re still not happy with that and we want to get below five. In order to do that we have to be bold.”

Clearly enthused he relays an example of how the RTA has introduced a policy, the Vehicle Defect Clearing System (VDCS) project, which has been raised to federal level with the RTA proposing its implementation plan across the UAE. “The objective of this project to ensure the safety of heavy vehicles in Dubai,” he explains. “Every vehicle has to be re-inspected every year. We also do specific targeted inspection on the road, where we stop vehicles on an arbitrary basis. We work with the police, who do the inspection and issue fines.

Via the VDCS system there are now a range of fines and defect notices in place. According to the extent of the defect the scale the company is given a time to prove that the defect has been fixed.

“If it’s a minor defect then a company has a couple of weeks to fix it and get it certified at one of our centres. We feel like we’re encouraging, and in a way forcing, people to not only pay a fine but fix the vehicle.”

At the same time, he says, the RTA is developing a database of operators and their vehicles. Companies that continually offend could find themselves facing hefty fines and possible cancellation of their license to trade. It’s bad news for operators that are cutting corners in a competitive marketplace, but it’s good news for road operators: “Legislation needs to be consistent and implemented across government to make it easier for industry to comply and we need more communication with industry itseld. The majority of the industry is conscious about road safety and is willing to play a role.”

INNOVATION

research shows that between 100 and 150 lives would be able to be saved on Sweden’s roads every year if drivers kept to the speed limits.

Statistics reveal that a vehicle’s speed has considerable importance for the outcome of the collision. A lower speed means that the risk of serious injury is significantly reduced.

The application of AC drive on the new Genie® GSTM-69 DC outdoor electric scissor series is pioneering.

It provides the power and performance to operate on real outdoor terrain, as well as offering emission-free indoor use.

•

Up to 35% gradeability and 7.2 km/h (4.5 mph) acceleration

•

Up to 30% less energy consumption*/ extended battery cycle life

•

9.9 m (32’), 11.96 m (39’) and 14.2 m (46’) full-drive height models

awp.infome@terex.com genielift.co.uk/GS-69DC +971 4 399 0381 Genie is a registered trademark of Terex, South Dakota. in the U.S.A. and many other countries.

Genie is a Terex Brand. © 2012 Terex Corporation *Plant Services magazine, Putman Media

Product Focus

Raw power EVERYTHING YOU NEED TO KNOW.

page 50 NEW RELEASES

The Intermat launches keep coming as CMME does its monthly round up of new technology and machinery hitting the industry.

page 64

DUNE DASHING

Taking the Renault Kerax through its paces in the desert.

page 54

LIFT YOU HIRE

The logisitics market in the Middle East is booming, here is our quick guide to the types of technology available in the material handling sector.

page 56 COMMERCIAL HEAD

Will the region ever get a taste for safer truck technology?

page 49 BETTER BUYER CMME gives you its top ten tips to become a better operator and purchaser in the confusing world of the aftermarket.

April 2012

CONSTRUCTION

MIDDLE EAST

49

New Products

BoBcaT To unveil 25th anniversary e16

KoMatSU doUBLeS Up

Why get theM? UniqUe styling Packs a PUnch

Why get it? easy UPgrade doUble the lifesPan Potential

T

o mark the celebrations for the 25th anniversary of the Bobcat compact excavator range, a new Limited Edition version of the Bobcat E16 1.6 tonne compact excavator with unique styling is being revealed at Intermat 2012.

More details will be revealed at the show, but the new Limited Edition E16 model is available as standard with a retractable undercarriage and offers powerful performance, superior reliability and durability. Smooth responsive hydraulics enable precise movements and fast cycle times.

Thanks to its compact size and light weight, the E16 can be transported on a trailer towed by a small truck, van or even a mid-size passenger car.

The E16 has a ‘cylinder-over-boom’ design in which the cylinder, being mounted on top of the boom, is protected when working in tight spaces or with attachments. The oversized diameter of the cylinder enhances the breakout force and lifting capacity of the machine. The auxiliary hydraulic lines and workgroup hoses are also mounted inside the boom and arm for optimal protection and enhanced visibility.

High digging performance is enhanced by the stability provided by the dozer blade and the low centre of gravity of the machine.

The E16 offers low noise and vibration levels, superior operator comfort, ease of serviceability and ruggedness. The spacious cab offers a large door width which, together with the low position of the superstructure, provides easy access to the cab.

A thick metal tailgate protects the rear of the excavator, an important feature for demanding applications in the equipment rental, demolition and construction industries.

SpecificationS • operating weight: 1.5t • engine (hp): 13 • Max travel speed (km/h): 4.8 • Slew speed (rpm): 8.1 • Boom swing angle (deg L/R): 80/60 • Max dig depth (cm): 260 • Max reach ground level (cm): 428 • Max dump height (cm): 2656 • Undercarriage width (cm): 136

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

50

CONSTRUCTION

MIDDLE EAST

April 2012

aLSo LaUnching

Komatsu is now offering customers the option of adding factory-fitted double auxiliary circuits to its MR-3 mini excavators. the circuits, available on models pc30MR-3, 35, 45 and 55, are controlled by a double slider on the machine’s proportional pressure controlled (ppc) joysticks. one of the additional

hydraulic circuits can be used to operate attachments such as tilt buckets or hydraulic breakers, while the second, lower pressure circuit is designed for applications such the rotating function on a roto-tilting attachment, a clamshell bucket, or for demolition tools. the two circuits can be used independently, with a maximum pressure of 70 l/min on the first line and 25 l/ min on the second.

Komatsu said availability may vary from market to market and advises customers to contact their local representative.

overhauled excavator froM cat Why get it?

Heavy duty undercarriage cat reliaBility

specifications • operating Weight range: 38 080-38 585 kg • power rating, net (iso 14396): 209 kW • Main hyd. flow/pressure (std.): 560 L/min.

• Max. dig depth (reach boom/r3.2dB arm): 7 322 mm

The new Cat 340D L hydraulic excavator features a Heavy-Duty High Wide (HDHW) undercarriage, which significantly increases digging and lifting performance and allows the 340D L, with its fuel-efficient Cat C9 engine, to outperform similar machines having larger engines. The 340D L’s broad selection of front linkages, buckets and work tools ensures its versatility, its quiet, comfortable cab ensures operator productivity, and its reduced maintenance requirements ensure minimal downtime.

Compared with the 340D L’s companion model, the 336D L, the new model’s HDHW undercarriage is 330

mm (11.8 in.) wider, 270 mm (10.6 in.) higher and 1 360 kg (3,000 lb.) heavier. The HDHW undercarriage provides enhanced stability, greater lifting power— both over-end and over-side— as well as increased ground clearance in rocky terrain.

The HDHW undercarriage also features multiple reinforcements in the track roller frames and carbody to ensure an exceptionally durable design. In addition, the undercarriage uses greaselubricated tracks that decrease internal bushing wear, reduce travel noise, extend service life and lower operating costs.

With a net-power rating of 209 kW/ 285 hp (ISO 14396), the six-cylinder Cat C9 engine incorporates Cat ACERT™ technology to effectively control emissions and to deliver

Michelin’s gaMe changer

cte access at interMat

Why get it?

Better staBility extra wear duraBility Michelin has showcased a potential game changer for the Middle East truck market at this year’s Commercial Vehicles Middle East, the region’s only event dedicated to commercial vehicles, parts and services. Specifically designed for the hot climate conditions and long haulage, the Michelin X Line Tropic F reduces operating costs thanks to its

maximum fuel efficiency. Fuel savings also result from the hydraulically driven, electronically controlled cooling fan that conserves fuel by adjusting speed to match cooling demand.

For added fuel efficiency, the 340D L has an Economy working mode and uses a regeneration valve in both the boom circuit and stick circuit. The new valves transfer oil directly between the ends of the hydraulic cylinders (in certain operating situations), thus saving fuel by eliminating unneeded pump flow.

The 340D L is available with two boom options (Reach and Mass-Excavation) and two stick options to ensure maximum flexibility when equipping the machine. An automatic swingpriority feature dedicates the flow from one pump to the swing.

patented “Michelin Durable Technologies” (MDT).

Dedicated to the front axle position, the Michelin X Line Tropic F optimises the life and mileage of the tyre and significantly lowers the cost per kilometre.

The MDT technology, developed in Europe and brought to the Middle East market this year, boasts several innovations, including a zero degree belt called ‘FAZ’, which improves the stability in the casing crown area allowing a more even wear, less belt edge stress and better retreadability. It also introduces a directional tread with inclined sipes and advanced technology compounding to reduce the wear rate and resist the onset of irregular wear.

An improved rubber compound is also used in the sidewall to offer resistance to ozone cracking.

“The X Line Tropic F has been tested extensively in the real world environment in Saudi Arabia and monitored by our field engineers,” says Alex Jurdak, Product Expert at Michelin. “The results were consistent and solid.”

“Using our best technology in one of the most difficult and demanding market in the world makes sense,” says Marc Laferriere, Marketing Director for Michelin AIM (Africa, India and Middle East) located in Dubai. “The product will first be available in Saudi Arabia followed by the rest of the Gulf Countries in April.”

Why get it? small space operator extra capacity

cte, the italian manufacturer of powered access platforms, has launched a new truck-mounted articulated platform in its Zed series. the new Zed 21 Jh is a revision of the previous Zed 21 J but with a redesigned

boom for more compactness and extra capacity. the boom is now parallel to the articulated arm. the loading capacity in the basket is increased from 200kg to 300kg. the double pantograph plus telescoping boom plus jib configuration allows the operator to reach 20.7 m working height with a 10 m outreach. the jib inclination has been increased from 110° to 145°.

specifications • load capacity: 200-300kg • operating height: 20.7m • outreach length: 10m • Jin inclination: 110-145°

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

April 2012

CONSTRUCTION

MIDDLE EAST

51

New Products

XCMG BEAST uNDERGOES TESTING wHY GET IT? it’s An infrAstructure powerhouse And A wAter cArrier Two years after being revealed at Bauma China, XCMG has been testing the limits of its massive QAY 1200 mobile crane.

The Chinese manufacturer reported that 1,200 capacity crane has undergone a series of successful tests include completing the lift of a 64t QY160K truck crane.

XCMG has conducted more than 10,000 tests on the cranes in the last year, evaluating its ability to cope with lifting heavy loads. XCMG decided to put the nine axle vehicle through one final test - lifting a$1.3 million QY 160K truck crane.

After a week of calculations and confirmation of the distance for the hanging point and fulcrum, the technical team finally determined the towertype operating mode: 63 metre main boom plus 36 m tower and super lift jibs.

To further test the QAY 1200, a cup of water was placed on the body of the QY 160K. The larger crane then lifted the smaller one 80m in the air, swung it through 45 degrees and lowered it back to the ground.

According to XCMG, the cup of water remained full.

fIRST BOBCAT T870 IN ITAlY wHY GET IT? A dust beAter true All-terrAin performAnce

SPECIfICATIONS • Overall weight in transport: 960t • Engine rated power kw/(r/min): 260/1800: 480/1800 • Max. rated total lifting capacity: 1,200t • fully extended boom: 106m • Engine model: OM460LA.E3A/5, OM502LA.E3B • Engine rated power: kW/(r/min) 260/1800, 480/1800

MACHINERY SOfTwARE

Tekla linking machinery wiTh Bim sofTware

T

he release of Tekla Structures 18 software makes the long road from design to reality easier. Create building information modeling faster with improved viewing, more intuitive modeling, and streamlined project management tools. The new version is available at www. teklastructures.com.

Collaboration between construction project stakeholders is on the rise and Tekla Structures 18 reflects this. All project stakeholders from architects, fabricators,

52

CONSTRUCTION

MIDDLE EAST

April 2012

contractors, designers and engineers to on-site builders benefit from improved access to more constructable, accurate and complete 3D model data.

With the new version, workflow is more efficient and intuitive than before, which reduces lead times in modeling. The result is increased overall design productivity.

Easy modeling and improved intuitiveness in drawing editing ensure that what you see is what you get. Improved automation minimizes user errors and need for troubleshooting.

Practical examples of the assets of the improved workflow are better connectivity to machinery and export functions.

When you export a model to IFC format, you have now more options: you can include grids, customize information, and export reinforcements in a light or detailed way. And DSTV

connectivity to CNC machinery and precast machinery are now enhanced.

“Faster and smoother modeling gives our customers competitive advantage. Added to the assets of BIM, like saving time and money during the bidding process and more manageable construction projects, our new software release will help our customers to raise their project profit margins.”, says Risto Räty, the Executive Vice President of Tekla Corporation.

Tekla Structures BIM software, launched in 2004, is used by construction professionals around the world to model, detail, fabricate and build many of the buildings, bridges, sports complexes, and other structures that surround us. It works seamlessly with Tekla BIMsight, the free tool for construction project collaboration.

Having taken delivery of the first Bobcat T870 compact tracked loader in Italy, the Salemme Giuseppe Company of Gerenzano in the Italian province of Varese, put the new machine to work straight away.

The Salemme Giuseppe Company operates in road construction, urban development, excavation works and earthmoving, demolition and utility construction. The company purchased the new T870 compact tracked loader from the Milan branch of the Bobcat dealer, DMO. The first project for the new machine was at a site where the foundations for the internal road system for a new residential development were being laid. Talking from the site, owner Giuseppe Salemme, explained the reasons for buying

the machine: “Our business covers a variety of applications in which the versatility of the equipment is a crucial factor. In addition to several types of larger machines, our fleet already included a Bobcat S250 skidsteer loader, which has proved very useful in numerous applications.

“In light of the type of work we carry out, we were looking for a machine that was not only easy to transport in terms of weight and size, but was also capable of operating in situations where greater power and traction than that offered by the S250 is required.

The T870 compact tracked loader offers a unique working environment for the operator that sets it apart from the rest with a 30% improvement in all-round visibility over previous machines.

SPECIfICATIONS • Engine: 3.8l Kubota V3800 DI-TE3 • Power: 74 kW (99 HP) at 2600 rpm (SAE JI995).

• Operating weight: 5.75t • Track width: 450 mm • Operating Height: 4.69m • load Capacity: 1.5t

QUALITY & STRENGTH Digging wayy to success gg g your y

Al Khobar P.O.Box: 2841, Al Khobar-31952, Saudi Arabia.

Tel: + 966 3 8576769, Fax: +966 3 857 4681 Email: Construction@saudidiesel.com.sa Web: www.saudidiesel.com.sa

BRANCHES Riyadh Tel: + 966 1 231 1931 / Fax: + 966 1 231 1031 Jeddah Tel: + 966 2 659 8500 / Fax: +966 2 659 8600 Jubail Tel / Fax: +966 3 363 4050

OTHER AREAS ( DEALERS) Tabuk Tel: +966 4 422 4490 / Fax: + 966 4 422 7225 Unaizah Tel: + 966 6 364 4555 / Fax: + 966 6 364 5969 Abha Tel: +966 7 227 0000 / Fax: +966 7 227 1944

Point Of View

Raising your profile Logistics equipment come in all shapes and sizes and CMME takes a look at its pick of the best.

I

t’s more than a question of logistics when it comes to getting your hands on the latest lifting equipment.

The surge in spending on logistics and port hubs in the Middle East, particularly in the Gulf counties where $15 billion is being spent in five years on building the next generation of port, rail and air terminals, has placed the spotlight on the types of technology available in the marketplace.

In the multi-faceted world of equipment supply in the Middle East it has become necessary for both

“ThE SuRGE In SPEndInG On lOGISTIcS And PORT

huBS In ThE MIddlE hAS PlAcEd ThE SPOTlIGhT On ThE TyPES Of TEchnOlOGyOR AVAIlABlE.” contractors and suppliers to get up to speed with the technology task of keeping the sector moving.

Equipment comes in many different shapes and sizes from the humble lift truck to large reach stacking trucks that operate in ports.

If you’re considering entering into what is a highly competitive market it is well worth pausing for moment and reviewing the type of machines available in the market.

Material handling equipment encompasses a diverse range of tools, vehicles, storage units, appliances and accessories involved in transporting, storing, controlling, enumerating and protecting products at any stage of manufacturing, distribution consumption or disposal.

The four main categories of material handling equipment include: storage, engineered systems, industrial trucks and bulk material handling.

Storage equipment is usually limited to nonautomated examples, which are grouped in with engineered systems.

Storage equipment is used to hold or buffer materials during “downtimes,” or times when they are not being transported. These periods could refer to temporary pauses during long-term

54

CONSTRUCTION

MIDDLE EAST

April 2012

transportation or long-term storage designed to allow the buildup of stock.

The majority of storage equipment refers to pallets, shelves or racks onto which materials may be stacked in an orderly manner to await transportation or consumption.

Many companies have investigated increased efficiency possibilities in storage equipment by designing proprietary packaging that allows materials or products of a certain type to conserve space while in inventory.

Engineered systems cover a variety of units that work cohesively to enable storage and transportation. They are often automated. A good example of an engineered system is an Automated Storage and Retrieval System, often abbreviated AS/RS, which is a large automated organisational structure involving racks, aisles and shelves accessible by a “shuttle” system of retrieval.

The shuttle system is a mechanised cherry picker that can be used by a worker or can perform fully automated functions to quickly locate a storage item’s location and quickly retrieve it for other uses.

Industrial trucks refer to the different kinds of transportation items and vehicles used to move materials and products in materials handling. These transportation devices can include small handoperated trucks, pallet-jacks, and various kinds of forklifts.

These trucks have a variety of characteristics to make them suitable for different operations. Some trucks have forks, as in a forklift, or a flat surface with which to lift items, while some trucks require a separate piece of equipment for loading.

Trucks can also be manual or powered lift and operation can be walk or ride, requiring a user to manually push them or to ride along on the truck. A stack truck can be used to stack items, while a nonstack truck is typically used for transportation and not for loading.

Bulk material handling refers to the storing, transportation and control of materials in loose bulk form.

There is now a huge range of equipment from companies in the market.

These materials can include food, liquid, or minerals, among others.

Generally, these pieces of equipment deal with the items in loose form, such as conveyor belts or elevators designed to move large quantities of material, or in packaged form, through the use of drums and hoppers. With the intensive pace in ports, SMV Reach Stackers are best suited for loading, unloading, and stacking empty and laden containers.

With our modular system we can always offer the ideal truck model for your needs that meets the requirements in your terminal. Our trucks are usually delivered more fully equipped than trucks from other manufacturers.

Railway handling usually requires larger trucks with higher lifting capacity and a longer reach. To load and unload on more than one track you need a flexible truck with more functions and larger lifting capacity. These trucks usually have “combiattachments”, which lift both containers (top lift) and trailers (bottom lift).

Other common options are hydraulically movable cabin or adjustable height cabin, remote control, and support jacks for increased capacity. This setting also requires trucks with a longer wheelbase.

A large Rail Stacker provides extra lifting capacity to load on track one or track two.

Trucks with long wheelbase lifts with higher capacity and have longer reach. Loading and unloading barges also require a higher lifting capacity and a larger reach. The very biggest reach stackers are in their element in this environment; strength and functionality provide the most efficient machines on the market.

A demanding situation Based on industry analysis, experts like Gomer predict that global demand for logistics forklift equipment is expected to improve, with steady growth in the Middle East.

“In the region, the logistics forklift sector is presaged to witness a rise in demand driven by mining, manufacturing, logistics and power industries,” Gomer predicts.

It is this very same manufacturing boom that has been exciting logistics companies.

The greater the demand for goods, the greater the need for logistics services to transport them. This, in turn, can only be good news for the forklift industry.

Forklifts provide one of the most critical components in a logistics industry that depends on material handling equipment to

achieve efficient storage and handling.

“Since the logistics industry is so heavily reliant, we can only expect that the demand for forklifts will organically follow the sector’s growth,” Gomer said.

The region’s leading suppliers of forklifts have been watching for signs of market growth very carefully.

“Following the period of economic uncertainty, we noticed the first signs of recovery in 2010,” says Vladimir Knezevic, general manager of Al Futtaim Motors’ commercial division.

“The first quarter of 2011 demonstrated steady growth and we are confident that this recovery trend will continue throughout the year.”

The UAE-based company has stepped up a gear in developing its MHE

business through its range of BT and Toyota warehousing equipment. As well as its extensive showroom and service facility in Dubai, Al Futtaim Motors has now built a twin facility in neighbouring Abu Dhabi. The company provides an aftersales service made up specialised technicians and a fleet of mobile workshop vehicles.

Like most forklift suppliers, the logistics industry represents the most important customer segment for the company. “In particular, small local and large international logistics companies drive the forklift business by replacing and/or adding more units to the existing fleet on a yearly basis,” Knezevic says. “These companies often require innovative solutions and thereby create a very dynamic market.”

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

April 2012

CONSTRUCTION

MIDDLE EAST

55

Sector Analysis

Trailer blazing

Is the Middle East being left behind when it comes to Commercial Vehicles technology?

U

tah’s dry, unforgiving Bonnefield Salt Flats have seen the landspeed record broken 11 times. While Brits Richard Noble and Andy Green have moved the record set by Gary Balbelich in Rocket in 1970 to Nevada’s Black Rock Desert, Utah remains the romantic race track for those wanting to push the very limits of vehicle design.

Later this month on 27 April, Boije Ovebrink will attempt to set a new record with his Volvo Mean Green hybrid truck in the state.

The Mean Green includes a highly-tuned Volvo D16 engine and a modified version of the company’s

100 million smart trucks by 2014 According to studies conducted in eight key global regions by Juniper Research, an estimated 92 million vehicles with internet connectivity will be on the road by 2016. As smartphone integration and cloud technology expands into more devices, vehicles will depend on such electronic platforms as well.

56

CONSTRUCTION

MIDDLE EAST

April 2012

“Integrating the smartphone into consumer cars represents a new route for the mobile internet and infotainment to enter the vehicle,” report author Anthony Cox said.

Early adopters in the industry include the Ford Sync AppLink, GM IntelliLink, BMW ConnectedDrive, and

the Entune from Toyota.

Eventually, these advanced infotainment systems will trickle across the industry, becoming as common as basic radios are today.

Commercial fleets and insurance telematics platforms that provide emergency response systems may benefit from mobile technology the most

despite being in the infancy stages of adoption. Juniper Research predicts that new connected platforms that manage driver efficiency and cost reduction will be released as soon as 2014. Regulations in the field such as the European Union’s E-Call will boost telematic adoption in vehicles as well.

automated I-Shift gearbox, the same you will find in its FMX range.

Using both the diesel and electric motors, Mean Green is capable of pushing a hefty 2,100hp with nearly 6,800Nm of peak torque. Mean Green isn’t just sheer grunt either and its bodywork features the sort of aerodynamics Sebastien Vettel would be proud of.

Ron Huibers, Volvo’s recently appointed president of North American sales and marketing, calls the truck a prime example of Volvo’s technical capabilities.

“Technology and innovation are at the core of our business,” he said at its launch. “Our engineers developed the world’s fastest hybrid truck utilising the same Volvo hybrid drive system powering hundreds of Volvo buses throughout the world including London’s double-decker buses.”

“The result is a lightning-speed boost from startoff without any of the customary diesel-engine delay,” explains Boije Ovebrink, Mean Green’s owner and driver. “It’s like a champagne cork, but without the sound effects. For the first couple of seconds the truck just makes a slight whistle until the diesel engine, which runs on renewable liquid rosin diesel, starts delivering with an explosive force.”

Landspeed records, like other cutting edge escapades such as Formula One and Space Missions, do not always deliver technology that helps us stuck in the slow lane. But Volvo is making a point, this

MAN ANd VW coNsider light truck MoVe VW is considering building a range light commercial vehicles with MAN when its existing partnership with Daimler expires in 2016. Europe’s biggest carmaker is a majority stakeholder in MAN and is looking to bring product development closer between the two companies.

VW currently has an agreement with rival Daimler to produce the Crafter van in Germany.

Reports in Germany suggest that the two

companies may part ways in four years, opening up the possibility of MAN manufacturing the next generation truck.

Wolfgang Schreiber, head of VW’s van division told reporters that.

“There is a preference and a discussion at the VW group to build an own vehicle with MAN,” Wolfgang Schreiber, head of VW’s van division.

He added that a decision is expected to be made in the next few months he said.

Daimler has previously offered to extend the agreement with VW while introducing Renault into the development. MAN CEO Georg PachtaReyhofen revealed in February that it expanded into commercial vehicles weighing between 3.5 and 7 tons to plug a gap in its portfolio. Vehicle sales at VW’s van division rose about 9% in the first two months compared with the same period in 2011.

Sales in 2011 rose 21% to 529,000 vehicles.

The development of truck technology has progressed on both greener and safer fleets.

“ThE ApplICATIOn Of ThESE SySTEMS IS IMpORTAnT

AS ThEy COnTInUAlly pROMOTE ROAD SAfETy AnD REDUCE ThE RESUlTIng TRAffIC fATAlITIES.” is technology that has a clear benefit. Volvo is not transfixed on speed either. It recently demonstrated its Volvo Enhanced Stability Techology (VEST) and VEC cruise control system (alongside i-shift) in Abu Dhabi, both of which have been in the market for some time have yet to get momentum in the Middle East. It’s not just a frustration for Volvo.

Most of the OEMs now have safer and more advanced trucks but in a market where it has not been either a requirement or a concern, they face a barrier to introducing them. They will need the assistance

of local authorities and perhaps there is hope that some of the more forward-thinking organisations such as Dubai’s RTA can spur demand.

The market for commercial vehicles in the UAE will saw double digit growth in 2012, building on the 15% growth, 2500 trucks per day, in 2011, according to Emirates Money. The RTA has piloted some of the world’s most advanced vehicle technology across the UAE and Middle East, through fitting heavy vehicles with two systems; the first tracks vehicles movement and the second reveals the conditions of tires. The new technology was fitted to 40 trucks with the aim of ensuring its road safety and its role in minimising traffic accidents.

Ahmed Bahrozyan, CEO of the RTA said: “The application of these systems is important as they continually promote road safety and reduce the resulting traffic fatalities. The RTA would also apply these systems on all heavy vehicles in the future.”

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

April 2012

CONSTRUCTION

MIDDLE EAST

57

Purchasing

gain r a st b a r growIng lI o f g n t to joIn a i lIst n a a p w u p ay yo m o Sh mme gIves buck, you c r s. u In a yo g r r g fo r ba

more ban market fo okIng for the used lo to e g ’r u In n yo r If are tu nIes that of compa look for. ld u o u sh of what yo

paint Watch for overspray and painted-over decals that indicate haste in painting or intent to cover up a problem.

Buying Tips for used equipmenT neW partS ask to see maintenance records. You want to know what caused a part to fail and require its replacement.

Be a better buyer Do you have your priorities right when it comes to buying in the aftermarket?

cleaned or WaShed machine this may be the mark of past good maintenance, or an intent to “wash away” potential problems. look out for fresh oil seeps and “newlooking” paint that was, until recently, protected by years of builtup grease. product identification number (pin) tampering with the pin is illegal. ask for evidence of ownership.

April 2012

CONSTRUCTION

MIDDLE EAST

59

Purchasing

Oil tRiCks On engines, thicker

oils are sometimes used to reduce leakage. Check the owners manual for the proper oil grade. if possible, get an oil analysis, especially if the oil has a “tackiness” to it.

Just OveRHauled look for new gasket edges and shiny metal where parts join to be sure. ask to see shop receipts for the work.

COntRaCtORs’ equipment Contractors sometimes buy less-expensive agricultural equipment for their moredemanding industrial uses.

Watch out for points of excess wear and oversize or heavy-duty tires not typical of the equipment.

dealeRs and salespeRsOns are dealer repairs carefully done during slack winter months or in haste during times of fieldwork? are salespersons genuinely helpful, or do you seem pressured to buy?

Run and dRive it Go with the seller to the lot to get the machine.

Observe any start-up problems, smoke puffs or unusual sounds. if possible, load machines in all gears once warmed up to check for desired lugging power.

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

60

CONSTRUCTION

MIDDLE EAST

April 2012

ill-fitted paRts Hammer marks, kinked hoses and parts misalignment indicate wrong parts were used or care during assembly was ignored.

POWER

YOUR PROJECTS WITH PEAX

Get in touch

Toll-Free 800 166 PEAX (7329) KSA A branch of Saudi Diesel Equipment Co. Ltd. www.peax.com info@peax.com

Lifting your

business

higher

Toyota Forklift is the #1 Lift Truck worldwide and in KSA. With outstanding reliability, industry-leading quality and value and a variety of models and load capacities, we can meet all your business needs. And our comprehensive service network and mobile fleet workshops keep your business on the move.

Jeddah: Tel: 02 6877058 - Fax: 026812311 Riyadh: Tel: 01 4950898 - Fax: 01 2131779 Ext 212 Dammam: Tel: 03 8176593 - Fax: 038177169 Asir: Tel: 07 2234347 - Fax: 07 2215651

Offroad Test

Dune dashing CMME takes Renault’s truck out in the desert to see how copes with the sand and the odd dune surf.

W

e’ve just popped out of the other side of a 10m sand dune in a 30t truck. The thump on the seat tells me I’ve just spent a moment in the air. I’ll be honest. It hurt a bit. My driver is neither demented or moved by the experience, he’s already looking at the next sand bank making a formidable obstacle in our way.

“I was always look for an exit, because I was almost stopped there but I knew I could use the momentum,”

64

CONSTRUCTION

MIDDLE EAST

April 2012

says Gilles Chauve, the French driver who is showing me what Renault’s Kerax can really do.

“I was a little short because I was in fifth gear but I knew the sand was soft. I could see the sand moving in the wind.”

I’m still breathless, I couldn’t believe he had time to even to glance at grains whisping on the breeze from the parapet of our 450.26 Kerax 6x6. Although I was checking my seatbelt was truly fast at the time.

“IT’s NoT A MACHINE THAT WIll BE FIllING

MANY FlEET INvENToRIEs, HoWEvER CHAUvE Is PRovING THAT THE KERAx CAN CoPE WITH WHATEvER CAN BE THRoWN AT IT.” “I always look at what’s happening because if you don’t, you get stuck.”

Getting stuck in the sand is not a habit that Chauve, the sort of Frenchman that embodies the grizzled spirit of the Gallic heroes in the desert that use to populate pulp fiction. In his decades of taking part of desert racing including in the world famous Dakar Rally (on two and six wheels), getting stuck in the sand is normally what other people do.

“I was out in the desert once and I warned this driver not to take on a dune and they ended up 20m at the bottom and not able to get out,” he recalls.

“I had to leave them there to get an excavator so I could dig them out.”

He tells it with no irony or exaggeration. Chauve has a fun job that he takes seriously.

“You must always concentrate.”

Chauve has learnt that when it comes to dune bashing (I call it that to him a couple of time, and he replies with an non-emphatic glance) or simply driving in the desert you have to pay constant attention to your surroundings and the respect the terrain.

“You can never assume what is one the other side.”

As we roll over, face down another dune heading for yet another bank ahead, I can see what he means.

We hit it seemingly dead-on but the truck powers up the other side.

“There is always a way through.”

The version of the Kerax we’re literally riding ripshod in is not an elegant surfer. It’s a powerhouse of a machine, packing a 10.8l engine, that is pushed by a 450hp 6-cyliner engine.

It’s propped up by a set of desert racing absorbers and also has its own tyre inflation system that Chauve demonstrates can be adjusted to dot-fractions of psi.

All in, the machine costs $300,000. In this configuration it’s not a machine that will be filling many fleet inventories, however that’s not the point.

Chauve is proving that the Kerax can cope with the desert and whatever can be thrown at it.

Renault – which is currently the fastest growing truck brand in the Middle East and North Africareally thinks that the truck can be a rugged winner in the region.

“This is a racing one, this 6x6 is a special one, but we sell the Kerax construction trucks too of course,” says Marco Bonaveglio, head of marketing at Renault Trucks Middle East. ”Kerax accounts for 80% of our sales in the Middle East and that is mostly in construction.”

It has also found success with oil companies too and I’m told Renault has just had a big order for the Kerax with BGP. Using a 6x6 configuration like the one Chauve is driving, the company will send out its fleet to explore for oil in the Dammam region.

“They’ve got the same tyres and they use it to transport personnel or equipment such as cables and a generator.”

“The Kerax covers all the sillouhettes,” he continues. “You can have it as rigid, 4x2, 4x4, 6x4, 6x6, 8x4, 8x6, 8x8 – so it’s the full range. We cover normal use like you would find in Europe to extreme, like this one.”

The Renault Kerax range offers many Euro 3 engine variants that provide the ideal compromise between low-speed torque and low consumption. The offering is completed by new drive axles and double-reduction tandems for over-the-road and off-road use.

April 2012

CONSTRUCTION

MIDDLE EAST

65

Offroad Test

While our ride is specially kitted out the chassis design of the entire range has been further improved by interior reinforcements and enhanced steel quality to offer higher load capability. Mechanical and robotised gearboxes add to driver comfort while continuing the quest to further reduce consumption.

Renault has chosen to use the lull in sales in some of its traditional markets, to carry on with its vehicle development and in the Kerax it shows.

“We have been working together with Gilles and testing here since 2009,” says Renault’s man “So we’ve got a big advantage over some of rivals in terms. Gilles is a very experienced driver and we have been able to not only test this model but another generation of truck too.

“You can ask Gilles, but driving a truck in the desert is much more enjoyable for him. Much more than a car or a motorcycle. It can do things that a car can’t do,” he says. “It’s the best sensation because you are a bit higher, and you have better visibility. Plus this truck has a very high clearance of 60 degrees. You think you’re going to smash but you don’t.”

I’m reminded of his words as we take another dip

66

CONSTRUCTION

MIDDLE EAST

April 2012

in the sand with Chauve once again powering us out of any danger.

Ahead of us is the Renault Sherpa, the 4x4 humvee style truck that the French company hopes will one day soon be availble for commercial sale. During the Cape to Cape rally the two vehicles worked in tandem to cover the 30,000km in 120 days. Chauve tells me that during the race, the Kerax fullfils the role of support, carrying a power generator supplies and mobile workshop.

In comparison the Sherpa feels fast but racey.

Its stripped down bare essentials inside and lower ride experience. But like any racer it is also a harder experience. I’m sure Chauve doesn’t worry about such things, but I know it’s not his type.

Accordindgly he runs off a list of trucks and 4x4s he would recommend for anyone who wants to take up a desert challenge. Our time nears an end, but it won’t be long until Chauve is back in the desert.

“I’m going to Qatar next to drive in the rally,” Chauve says. “But Qatar’s a little boring, a bit too flat. I prefer to have the big dunes.”

I wish I was going with him.

Dealer Round-Up

KINGDOM OF SAUDI ARABIA Alesayi Group Al Juffali Al-Rehab Equipment & Machinery Arabian Auto Agency Bakheet Medco Olayan Group Omatra Salah & Abdulaziz Abahsain Saudi Diesel Equipment Zahid Tractor & Heavy Machinery

Find me a KSa dealer!

With the Construction Machinery Show taking place in Jeddah this month, CMME takes a look at some of the biggest names in the Kingdom.

AlesAyi GROUP Kingdom of Saudi Arabia MAIN BRANDS: Hitachi construction equipment, Furukawa hydraulic breakers, Furukawa crawler drills, Mitsubishi forklifts, Yamakawa concrete block-clamps

www.alesayi.com CONtACt: +966 2 284 2266

Alesayi Group foundation was laid by Sheikh Omar Kassem Alesayi in 1945. Today, the group comprises of some 61 companies grouped into five business sectors including real estate, consumer and trading, engineering and technology, service and manufacturing. It has a global reach with branches in 18 countries on

five continents. Omar K Alesayi & Company - the Heavy and Agricultural Equipments Division, is a leading dealer of engineered equipments with leading brands of construction, breaking, drilling and material-handling equipment. Hitachi Construction Equipments range from excavators, wheel-loaders and Furukawa hydraulic breakers, to Furukawa crawler drills, Mitsubishi forklifts and Yamakawa concrete block-clamps.

Al JUffAli Kingdom of Saudi Arabia MAIN BRANDS: Bosch power tools, Astec asphalt plants, Phoenix asphalt sprayers, CompAir compressors, Worthington concrete pumps and transit mixers, Link-Belt cranes, Demag cranes,

Liebherr earth moving equipment, Clark forklifts, Tecalemit lubrication equipment

www.eajb.com CONtACt: +966 2 667 2222

Al Juffali was established in the late 1940s and since then has played a major role in the development of Saudi Arabia. The company says it has introduced many new quality products, as well as innovative services and advanced technologies to the country. Today, activities of the Juffali Group include manufacturing, engineering and construction, as well as distribution and service.

Throughout the development of the company, Juffali has continued to expand its interests into a variety of business sectors. Its contribution towards the economic growth of the country has

April 2012

CONSTRUCTION

MIDDLE EAST

69

Dealer Round-Up

been immense and the company’s reputation for quality goods and services is unparalleled in Saudi Arabia. Today, Juffali is a well-established and prominent player in the Kingdom. It has been involved, from a very early stage, in the Kingdom’s highway construction program. Juffali supplies highway contractors with Astec asphalt plants, Phoenix asphalt sprayers, CompAir compressors, Worthington concrete pumps and transit mixers, Link-Belt and Demag cranes, Liebherr earth moving equipment, Clark forklifts and Tecalemit lubrication equipment.

AL-REHAB EQUIPMENT & MACHINERY Kingdom of Saudi Arabia Main Brands: Volvo

www.alrehab-ksa.com ContaCt: +966 2 680 4444

Al-Rehab Equipment & Machinery is the sole agent of Volvo Construction Equipment in the Kingdom of Saudi Arabia and has built a world-class operation in a remarkable time.

The company is committed to work ever-harder to make sure it maintain and then finds new ways to exceed its own high standards. As the global industry continues to change, it plans to continue to build key relationships that provide added value to its services. At the heart of the company’s operations, it stresses safety, quality and the environment, as well as a desire to build a strong and lasting partnership with customers, based on an approachable and pro-active attitude. Overall, its determination is to maintain the Volvo spirit of innovation in the development of products while continually improving the support of customers.

ARABIAN AUTO AGENCY Kingdom of Saudi Arabia Main Brands: Kawasaki, Sumitomo, New Holland, Wacker, Terex, Clark,

www.aaa.com.sa ContaCt: +966 2 669 5595

150 people and the company prides itself on the commitment of its work force. The Head Office is based in Jeddah together with the western region branch and in 2010 moved to new facilities located off the Makkah/Madina highway. Medco began as the agent for Volvo farm tractors and was responsible for selling large volumes of Volvo equipment throughout the Kingdom, including 1,500 units in one year. Soon, it expanded into the industrial and construction fields and over the years Medco has secured several leading and complementary franchises.

Arabian Auto Agency has a long and successful history in the construction equipment industry.

Its success is based on a philosophy of excellent support for excellent products - all from world class manufacturers, from Japan, Europe and the United States. A key strength of the company is its ability to work with customers to specify exactly the right machine for the job and to act as a single source for the full range of equipment required.

BAKHEET Kingdom of Saudi Arabia Main Brands: Schwing, Hamm, Kobelco, Kaeser

www.bakheet.com.sa ContaCt: +966 2 691 0550

Bakheet is one of the Kingdom’s most experienced suppliers in the field of construction, concrete, road paving and garage equipment industries.

Established in 1974, the company has a firm commitment to providing quality solutions by offering the right products and services to its valuable customers. Bakheet is proud to be in business partnership with world class corporations including Schwing, New Holland Kobelco, Vogele, Hamm, Cuoghi, Kaeser, Weber & Nussbaum along with other valued suppliers. Bakheet has a vast experience helping its Kingdom-wide customers with optimised solutions for their business needs and wants which makes Bakheet a reliable and trusted name in the Saudi market.

MEdCO Kingdom of Saudi Arabia Main Brands: Dynapac, Gehl, Putzmeister, Sandvik

www.medco1.com ContaCt: +966 2 290 7230

Medco is a leading dealer of premium industrial and construction equipment in Saudi Arabia.

The company was founded in 1967 by Sheikh Saleh and Ibrahim Alfadl and is a 100% Saudiowned business. Operating from purpose built facilities in the eastern, central, western and southern provinces, Medco employs more than

OLAYAN GROUP Kingdom of Saudi Arabia Main Brands: Amco Veba truck cranes, CNH/ Case, Cummins, Fleetguard, Irizar, Mailleux loader attachments, Paccar International Kenworth trucks, Razol, Scania, Siemens, Terex

www.olayan.com ContaCt: +966 3 882 0888

The Olayan Group is a private, multinational enterprise made up of more than 50 companies and affiliated businesses. In the Kingdom, where the Group originated, Olayan engages in product distribution, manufacturing, services and investment, often alongside leading multinational and regional partners. Internationally, the Group invests in public and private equities, including real estate and in other asset classes. Launched in the Eastern Province in 1947, General Contracting Company (GCC) - the very first company of The Olayan Group - soon grew into a Kingdom-wide equipment distributor and dealer. During its half century of growth, GCC has garnered many awards from both its international partners and key customers. Through its network of branches throughout Saudi Arabia, GCC sells and services everything from electrical power generating equipment (diesel and wind turbines) to tractors, combines, trucks, loader attachments, buses and even fire trucks. It serves a variety of sectors transportation, agricultural, construction, civil and many others.

April 2012

CONSTRUCTION

MIDDLE EAST

71

Dealer Round-Up

OMATRA Kingdom of Saudi Arabia Main Brands: Iveco, Astra, CIFA

www.omatra.org ContaCt: +966 2 672 8545

One of the Arab world’s leading manufacturing and trading companies, OMATRA (Orient Marketing and Trading) was established in 1977.

With its head office in Jeddah, it maintains a strong market presence with well established Branch Offices in Dammam, Jubail, Abha, Madina Al Munawarah and Riyadh, as well as outside the Kingdom in Cairo, Beirut, Baghdad and Rome. Its major areas of activity include the importing and manufacturing of contractors’ plant and truck equipment with full parts and service back-up.

OMATRA maintains a large central parts depot with full parts availability for all plant and trucks equipment marketed. Similarly, sub depots are located within each branch. In addition to this, an extensive service and maintenance back-up is provided throughout all outlets as well as a multinational team of engineers and technical staff trained locally.

OMATRA is very selective and represents only a few manufacturers, all of international reputation. Through its well organised, concerted efforts since its establishment, it has succeeded in gaining large shares of its specific markets.

SALEH & ABDULAZIZ ABAHSAIN Kingdom of Saudi Arabia Main Brands: JCB, Tadano, Heli, Rotair, Dressta, Dulevo, Mitsubishi, Asphalt Zipper, Hyundai

www.abahsainhed.com ContaCt: +966 3 898 4045

Saleh & Abdulaziz Abahsain - Heavy Equipments Division - the Kingdom’s pioneer distributor for heavy machinery, construction, earth moving and power generation equipments.

Saleh & Abdulaziz Abahsain is one of the largest distributors for heavy machinery, construction

72

CONSTRUCTION

MIDDLE EAST

April 2012

and earthmoving equipment in the Kingdom.

With the premier globally dominating brands in construction, heavy lifting, materials handling and power generation equipment, it has become the leading vendor for many Saudi businesses.

Its reputation is built on more than 60 years of high professionalism in sales, after-sales service and highly efficient spare parts support, delivered through a separate parts supply department, staffed by more than 100 highly qualified and skilled service engineers and technicians.

SAUDI DIESEL EqUIpMENT Kingdom of Saudi Arabia Main Brands: Peax, Higer, Allison Transmission, Doosan, Detroit Diesel

www.saudidiesel.com ContaCt: +966 3 857 6769

In 1978 Saudi Diesel Generators Company (SDGC) set about establishing itself as one of the country’s first local manufacturers of diesel power generators.

Founded with the objective to serve and support the critical growing needs for diesel generators, SDGC soon realised the potential of expanding and diversifying its business portfolio, and transformed itself into the Saudi Diesel Equipment Company.

A 100% Saudi entity and a member of the highly respected Abduljawad group of companies, SDEC achieved instant recognition as an innovative, professional and a trustful business partner. Today, Saudi Diesel Equipment Company claims to have surpassed all expectations to become one of the country’s reliable partners in success supporting the power generation, construction, transportation, airport ground support equipment. SDEC offers its products and services on short and long term lease agreements including diesel engines and generators, forklifts, excavators, compressors and maintenance services. This facility has earned enough support for SDEC to transfer this business to a new operation called Peax, which currently handles transport duties.

ZAHID TRAcTOR & HEAvy MAcHINERy Kingdom of Saudi Arabia Main Brands: Caterpillar, Barber Green, Bitelli asphalt pavers, Challenger agricultural tractors, Daewoo buses, Demag cranes, Ingersoll Rand compressors, JLG and Jungheinrich material handling equipment, Lorain cranes, Peerless pumps, Rammer industrial hammers, Renault trucks, Svetruck specialised lifts, Terex cranes, Volvo trucks and buses

www.zahid.com ContaCt: +966 2 667 1156

The Zahid family has been distributing Caterpillar machinery and equipment since 1950, serving virtually all of the Kingdom’s public and private sectors. Zahid Tractor and Heavy Machinery was incorporated in 1967 and, over the years, it added international brands, becoming well equipped to provide fully integrated solutions to its demanding clientele. Zahid Tractor was subsequently restructured into three efficiently run divisions providing comprehensive customer-centric specialised solutions to the construction, mining, oil and gas, agricultural, power generation, material handling and transport industries. As a paperless organisation, the company is fully connected through a sophisticated communication network. It continues to innovate and set worldclass standards and has become renowned for its commitment to advanced technology and quality.

Zahid-Cat has a product range that covers the full spectrum of construction, mining, earth moving and road equipment, and power generators.

The Last Word rm oil High long-te ean prices will m ment in stable invest construction.

l predicts oil Alpen Capita n e constr uctio th y d a te s l il w e GCC. industr y in th

Constr

74

CONSTRUCTION

MIDDLE EAST

April 2012

construction to dr ive the ly ke li is se so home population ba GCC region. The GCC is al e to th bi ss and in a d sector acro te population ia tr e th pa t, ex e en to a larg and investm ed tate growth ies have open tr n u dr ive real es co CC G l ra ve g se in of w lo governments foreigners, al tate sector to bined m co , is Th . up the real es proper ties se ea pulation /l n po ow te them to of expatr ia x u fl in g n si ea skills wit h the incr shor tage of mainly due to housing on e gi iv re dr e th to in is likely s, al n io at n l s. among loca ber countr ie e GCC’s mem have also been s ie tr demand in th un co r C membe regulations in Most of the GC their existing ng gi and an ch stment (FDI) pro-active in n Direct Inve ig s re te Fo ia t tr ac pa tr to the ex order to at ctor. ing conditions se liv on er ti tt uc be tr e provid the cons rther boost to region providing a fu ls in the GCC ve le n io at fl in red e bl Managea es (as compa proper ty pr ic d w an lo m h it de w to act as coupled es) are likely ic pr al l ci ca er ri m to m to his ell as co sidential as w dr ivers for re . markets tracting the construction E and Qatar at A U an , on ti di In ad MSCI will give t status from ese ke th ar n m hi it ng w gi t emer vironmen en th in ow gr e fu tion of nds impetus to th creased alloca in ng ci du in sector. countries, construction r al estate and re t challenge fo e es th gg bi e owth in ains the m th gr r re ss la y ro pl cu ac ta up or rs ec ct Ove ssed sp al estate se e re th d in an he GCC witne e on on th ti ti t of fice construc the construc st af fected ou of commercial of mains the wor an oversupply cline in re to de E d p A le U ar C. sh ch a hi GC g w witnessin s, stors and last decade, ie ve tr in un tes slower as e co pa r ci ac fice sp membe er ty Capital anti op en pr lp e A th s. commercial of al in nt to project to invest prices and re to further lead ere reluctant ry ch w hi ve es w co ni ly re pa pp ed m co . e oversu than expect ed in a e GCC region the crisis. Th y rates result ons across th market post nc ti elled across ca la el va nc ca nc gh e ca hi er led to projects w UAE. e e rg th la stor s in subsequently ou es er ic k Num to wea inve in proper ty pr and 2011 due l yields to be 10 the ta 20 n ss steep decline re in ro e C ac th GC s ks the l expect nds. Ban clining fu de of to ck e la d du Alpen Capita r-term n cautious in sentiment an re in the nea s. The UAE inue to remai te nt ra co cy ill n w real estate s ca under pressu on GCC regi of high va truction and ck ns on ba co e m e th iu th on to em nds rentals joy a pr n economic extending fu ent uncertai of the cted to still en rr ts pe cu ke ex of ar is ck t m ba ke re mar matu t markets. sector on the compared to supply in mos g foreign as n er d ti ov el ac yi tr an l uction d at ta n an in re l help ercial constr conditions pe which wil ial and comm nt de d, si te re US and Euro en C m .

The GC d frag in the sector t, mpetitive an ayers investments t is highly co ic environmen ke all and big pl om ar sm on m l ec ra al ve , ob ai se gl of ub e D , ce th e es en ti nc ov es O , impr d compe tion marked by pr the Eurozone The increase n. llent ai ce ch ex tive e t, lu en va particularly in ronm lt in competi across the political envi likely to resu er ty prices is op ive or pr dr ct al to se ci with its calm e er ed th within d low comm ch is expect er ty hi an op w pr re s re er tu lu ay uc tr pl ill e nies infras prices) w bidding by th uction compa to historical als and the gins of constr ar du m (as compared vi e di th in n th w do gh net wor uction mercial office investors, hi ercial constr further. invest in com ns to ai or nt ct ai se m ial and comm l e nt ta de pi d, si Ca te re corporat en C en m lp GC A The and frag longer term, fice competitive g players space. In the commercial of ket is highly e ar th m l small and bi of ra ng si ve ew ri vi se of c of ti g ck is ce m ba en ti e es op th s pr an ai on ion rate amon marked by market of Dub n. High attrit . ai th ch e ow lu or gr va aj ic construction e m om ains a across th d stable econ and an orkforce rem population an al oil demand iate labour w tr ob sector, as the gl pa in on ex ti n th uc ve ow tr gi ices have e GCC cons pr Continued gr th l r oi fo in le awn towards d rd en e hu pected ng-term tr bourers ar dr ex lo la es te ng ic ia si tter job tr pr ea l pa cr oi ex in With ies due to be C’s economy. home countr r ei in th s se a boost to GC ea cr s there. any further in opportunitie e away to be stable, suppor t REVOVERY ill w quest to mov ng r ei di th en n sp “I t en m rn gove y oil-based TIME? predominantl d consumer om an t fr en s m st ve in a e GCC nation According to Alpen’s Sameena ereby having economies, th ts, ec oj pr g spending, th . bi l th Ahman, the GCC construction sector GDP grow ted severa ia on it ct in fe e ef on ve positi tion being saw a period of spectacular boom and growth with construc in es ti ri Positive GDP ost prio was subsequently adversely affected e GCC region of their top-m na ee m Sa ys forecast for th de”, sa by the global economic meltdown. She be translated the last deca at r to ec ir is expected to D g commented: “Although the sector agin se in Ahmad, Man into an increa is showing signs of recovery, . l. es ta ti pi vi ti Ca ac Alpen construction investors are still taking a rbanisation Increasing u cautious approach.” d growing and young an

? e m o h g n i uction com

T