Construction Machinery Middle East

ISSUE 5 2 MARCH 201

PuBlICATION lICENsED BY IMPZ

SHOW TIME

Special guide to the Saudi Arabian market

CRANE COMEBACK

HOW TO lOOk AfTER YOuR lOADER

Towers return to the region

EURO ZONED OUT? Looking forward to Intermat

Plus: ACROss THE INDusTRY

*

NEWs & VIEWs

*

TENDERs

*

NEW PRODuCTs

*

AND MORE

Contents

IS S U E 5 12 MARCH 20

36 Show Time page

Special look at the Saudi Arabian market.

22 56

04

Editorial

Who should pay for training?

06

NEws

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

14

NEws aNalysis

Euro Auctions provides insight into the buying habits of Middle East machinery customers.

16

bEiNg opEN iN dubai

CMME visits Hitachi’s landmark open day in Dubai and learns the Japanese company could supply from India.

22

towEr craNEs

Market analysis at how the Gulf region is rediscovering its appetite for tower cranes.

27

boom timE saudi arabia

Ahead of the Construction Machinery Show in Jeddah, CMME looks at the booming market.

34

iNsidE iNtErmat

How will the troubled European market affect the year’s big global showcase?

58

thE last word

A year on from its uprising, the construction machinery sector is struggling to make its mark.

54

Raw power

NEW RELEASES Your quick guide to what’s new in machinery. Page 47 GENERATOR SETS Opting for power is not the only way to go for the latest Gensets. Page 50 POINT OF VIEW A special guide to looking after your prized heavy-weight wheel loader.

Page 54 MILITARY TECH The line is blurring between technology in the field and on the construction site. Page 56 SHERPA SCOUT page

42

Utility concept vehicle makes its Middle East debut.

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

WHo pays for training?

T

he UAE has been gradually reforming the rules, regulations and rights of the unskilled workers that are employed by the construction industry over the past year. Among a raft of the new measures introduced were rules that entitled workers to move on to a new employer after two years of service. The latest initiative looks to improve the selection process and will see the country set up training centres, first in India, then Pakistan and Bangladesh.

The move has been welcomed in some quarters as it will mean cutting out private recruitment agencies and allow for clearer assessment of individuals coming to the country for work. On the face of it, it should protect the interests of companies looking to make the most of those two years while whittling away the influence of the agencies.

While the requirement to take training will relate to any worker that qualifies as being ‘unskilled’, it is the construction industry that has been singled-out by the government as it looks to raise standards in the sector. Under the scheme, workers will need to pay 6,000 dirhams to learn skills that will be essential on site and when using equipment. The scheme sounds laudable but is it workable? The chairman of Al Mansouri Construction isn’t convinced.

aDVeRTiSinG COMMerCial DireCtOr RaZ iSLam raz@cpidubai.com +971 4 440 9129 business DeVelOPMent DireCtOr micHaeL STanSFieLD michael@cpidubai.com +971 4 440 9128 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 Louie aLma online@cpidubai.com +971 4 440 9100 pubLiSHeD bY

Amer Al Mansouri thinks that the move will affect hiring conditions and wage levels in the country.

The net result he argues will make constructing in the UAE much more expensive and has urged the authorities to speak with the UAE Contractors Association as well as developers and construction companies before taking it further. There is also the concern that to get the numbers required, construction companies will have to fund the training themselves, effectively paying to train the workers twice. Clearly more thought would is necessary and pragmatic.

They could learn a lot from machinery sector here too. Having recently spoken to Paul Floyd of Famco’s ideas on staff training and development, it would seem clear that more can be done not only in the recruitment process but the stage that matters most – when workers are on the job. With laws being introduced that allow freer movement of the workforce in the UAE, companies need to start considering how to hold on to even its least trained workers.

Recruiting can be an expensive process but retention can be invaluable.

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. © 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

March 2012

News Round-Up

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

1WTC NEarS Top

Construction on one World Trade Center continues at a pace of about one floor per week. as of 17 February, 2012, the tower’s steel has risen to the 92nd floor, concrete flooring is at the 86th floor, and glass panels have reached the 70th floor. The building’s structure is expected to top out sometime in the spring of 2012.

Middle east set for concrete booM The world market demand for cement and concrete additives is forecast to grow +8.3% annually to US$15.8 billion in 2015, compared to the annual growth rate of +4.4% seen during the 2005 to 2010 period.

According to figures from research company Freedonia, recovery in the North American construction industry will lead this growth.

The US was the only market to see demand for cement and concrete additives decline in 2005-2010, with a drop of -3.7%.

However, it is forecast to see a resurgence in demand in 2010 to 2015, at +11.1% anually, with demand

forecast to reach $3.6 billion by 2015.

Africa and the Middle East, which continues to see a construction boom, are forecast to have the second highest growth rate in that period at +9.7%, reaching $1.1 billion by 2015.

However, Asia Pacific, led primarily

by China, currently the world’s largest market for additives, will have the largest share of the market by 2015, at $6.4 billion – a 8% increase. According to Freedonia, Asia Pacific’s dominance will largely be due to an increase in demand from China.

A booming India market will also take a chunk of demand.

Putzmeister board did not know it would be sold Schlect blasts “monumental stupidity” of local protests over the deal

S

any’s Changsa plant has been described as something Putzmeister can only “dream of” by its owner Karl Schlect.

Following Sany’s announcement that it will buy the German giant last month, Schlect has been in China to discuss the merger of the two companies.

The deal thought to be worth $606 million has split opinion in Germany. Putzmeister was founded

by Schlect in 1958 and grew into the world’s leading supplier of high-tech concrete pumps. The company, which recorded sales revenue of $450 million in 2011, employs 3,000 people at its Aichtal plant, making it a major employer and a pillar of German industry.

News of the deal reportedly sparked protests at the plant with a member of the company’s work council

66

CONSTRUCTION CONSTRUCTION MIDDLE EAST MIDDLE EAST

September March 20122011

claiming that the company’s supervisory board was “not informed” of Schlect’s decision to sell.

Sieghard Bender, regional head of worker union IG Metall described the deal to German newspaper Das Spiegel as a “Götterdämmerung (twilight of the gods)”, an expression that means the violent downfall of a system. The newspaper reported that 700 workers had been involved in protest at the gates of the company.

Some workers are said to have been angered by comments made by Schlect who described Sany’s plant as, “something we can only dream of. It was clean as a whistle in there.”

Schlect is also alleged to have called the reaction in Germany a “monumental stupidity”. In a statement following the announcement, Putzmeister said that both partners will benefit substantially from the combination.

“Sany’s financial strength secures Putzmeister’s growth prospects and provides a significant competitive

advantage. Sany adds to its portfolio technologically cutting-edge products and innovations [that are] ‘Made in Germany’ and acquires a strong distribution and service network outside of China,” said Putzmeister.

The transaction marks the first time that a large and well-known German company has merged with a Chinese partner. Addressing local concerns, Sany said it is not planning to restructure the company. It has been rumoured that Schlecht, who is now aged 78, was unable to find an outstanding candidate to succeed him at the head of the company. He said that Sany’s own founder Liang Wengen shared his company’s values.

“This merger is a global showcase transaction.

Sany is one of the few Chinese conglomerates which is personally operated by the founder, who is also the majority shareholder,” said Schlect. “In fact, Liang Wengen shares our entrepreneurial spirit, but also Putzmeister’s visions and corporate values.”

Company intelligenCe Gulf Capital, an abu Dhabi-based privateequity company, bought an 82.7 percent stake in power generation services company Sakr EnErGy SolutionS fZCo and said it expects to complete three more buyouts this year. gulf Capital acquired the stake without using debt and at 40 percent below the average valuation of global peers, Chief executive officer Karim el Solh said in a telephone interview today. the stake was acquired from Sakr Holding, which along with Dubai-based Sakr energy’s current management, set up the company in July 2007 after the separation of the middle eastern assets of ge energy Rentals, gulf Capital said in a statement.

Dubai’S rta has awarded a 13-year maintenance contract for the al Sufouh tramway to a consortium comprised of alStom anD CofEly bESix faCility manaGEmEnt (fm). the total value of the contract amounts to €120 million, including €68 million for alstom, the consortium’s leader, and €52 million for Cofely Besix Fm. it includes an option for a five-year extension in the amount of €50 million. the contract is for the maintenance of the rolling stock and fixed installations to be delivered by alstom and Cofely Besix Fm for phase 1 of the Dubai tramway project. this phase 1 includes the supply of 11 Citadis tramsets, 10 km of track, 13 stations and other equipment.

Qatari ConGlomEratE mannai, owner of one of the region’s most dynamic distributors, is considering buying jewellery change DamaS. JaSSim tranSport & StEvEDorinG Company in Kuwait has expanded its power Rental Fleet Division by taking its first 15mW of a 54mW order for diesel generators. the batch was provided by Dale power Solutions and DpS Kuwait agents instant access.

tenDeR upDateS

1

Construction tenders have been issued for the oman ConvEntion ConvEntion anD Exhibition CEntrE (oCEC), following the completion of site preparation near muscat. following an 18 month final-design period for phase one, construction is now ready to commence, confirmed rochelle uechtritz, group manager: convention sales development, aEG ogden.

2

tEtra tECh in afGhaniStan has issued tenders for Skid Steers. meanwhile the afghanistan rural Enterprise Development program (arEDp) (hereinafter referred to as the Client) has invited bids nine standard left hand drive station wagons, three fully air conditioned airconditioned minivans. also in afghanistan, the regional afghan municipal program for urban population-East has released a tender for a 195 day rental of a soft skin vehicle.

3

finally aShGhal in Doha has closed its tender for its on-call contract for rental of heavy vehicles/equipment (aa/11-12/rm/002/G).

Kingdom infrastructure spend tops $40 billion 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 AlHarithy 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.

Bahrain to Bounce Back bahrain has endured a difficult 12 months but government investment and programmes are expected to spur more growth for the country’s construction industry in 2012. the country has unveiled that it has started the region’s first public/ private partnership with a $505 million deal with naseej properties to build 4000 affordable social housing units in the country. the announcement has been welcomed by local player rubber World industries (rWi) which has announced its plans to position itself as a major provider of world-class high-quality rubber based building materials through the strategic move of

expanding its trading division. “the middle east and north africa region’s construction industry is moving on the fast track in terms of new projects and the resumption of projects that were stalled by the recent economic downturn,” said rWi bahrain’s managing director rizwan shaikhani. “bahrain, in particular, has been forecasted to experience key growth this year through the strong support and backing of the bahraini government.

We are very eager to position ourselves as a major provider of world-class rubber based building materials for bahrain’s ongoing construction projects,” he added.

September 2011 March 2012

CONSTRUCTION CONSTRUCTION MIDDLE EAST MIDDLE EAST

77

News Round-Up

Fayat Group now has BOMAG’s BW 332 DEEP IMPACT, the heaviest single drum roller in the world.

KVL cutting into Bahrain and Saudi araBia Bahrain distributor KVL is to start selling Tyrolit products into Bahrain and Saudi Arabia.

Tyrolit, founded in 1919 in Austria, is a member of the Swarovski Group and is one of the largest manufacturers of bonded grinding, cut-off, sawing, drilling and dressing tools in addition to being a system supplier of tools and machinery.

More than 25 latest products from the Austrian company have been launched for the metal and fabrication industry including super-thin wheels, flap discs, and cutting and grinding wheels along with special application products like Basic touch and premium Rondellers.

Other new products from Tyrolit unveiled included floor grinding machines for the construction Industry, Pioneer disc from the coated range for the metal fabrication industry, etc.

Special teams were flown in from Austria and Tyrolit Middle East headquarters in Dubai to give an overview of the products and to provide live demonstrations to representatives of leading contracting and fabrication companies in Bahrain.

Participants at the event, held in the Arab Asian Business Centre, were briefed on the working of core drilling, wall saw and wire sawing machines.

8 8

CONSTRUCTION CONSTRUCTION MIDDLE EAST MIDDLE EAST

September March 20122011

The Bahrain launch is significant given the ongoing and upcoming infrastructure project requirements in the kingdom, said KVL’s construction manager Samarth S Dhond.

“Today every construction business requires diamond tools to cut through hard concrete. We definitely see the requirement of this equipment in the ongoing infrastructure projects in Bahrain, which include bypasses, highways, flyovers, causeways, interchanges, etc. to cut into structures, demolish or restructure them.”

Dhond said Tyrolit is amongst the top three in abrasive products with a history of more than 80 years in manufacturing. “Its machines are used by companies and projects around the world. However, it has been in the Middle East for only three years now but is fast picking up ground.”

Dhond expressed confidence in Bahrain’s construction market and said with six major projects underway, including the Mina Salman interchange, North Manama causeway, Four Seasons hotel, ABG headquarters, and two other hotels, there couldn’t have been a better time to enter the market.

Already the company’s products have been used in the North Manama causeway project. He said the abrasive and diamond cutting tools market is a hefty one in Bahrain with sales amounting to $658,000.

AL-FuTTAim AND DubAi POLiCE TiE-uP Toyata’s distributor in the UAE has supplied 35 Land Cruiser Prados to Dubai Police (DP). The handover ceremony was headed by Brigadier Anas Al Matrooshi, Deputy Director Transport and Rescue Dubai Police and Simon Frith, MD, Al-Futtaim Motors and attended by senior officials from DP and AlFuttaim Motors.

JOinEd FORCES Taher Al-Dabbagh (right), Saleh Bin Laden (center) and Fabrizio Cepollina of Case Construction Equipment (left) during the opening ceremony for the Roots Group’s new headquarters and Case showroom. in Jeddah

ROOTS HOLD ON CASE CASE Construction Equipment has joined up with the Roots Group for the distribution of its full line of equipment in Saudi Arabia. The two companies outlined the partnership’s ambitions at an opening ceremony for Root’s new HQ and showroom dedicated to Case’s equipment in Jeddah.

The Roots Group, with revenues of SR2.5 billion in 2011 is a major player in KSA. The company will support customers from its bases across the Kingdom. With Case’s backing Roots will provide training and after-sales

support throughout the territory to customers.

Samir Al Shubaily, deputy CEO of Roots said: “This brings together our long-term experience with Case’s premium equipment.

We are expanding to meet the diversified needs of the industry.”

Case’s VP for construction, Fabrizio Cepollina, said: “KSA is a key market for us. The construction sector is the largest and fastest growing market in the GCC “This new partnership will enable us to make the most of the opportunities ahead and develop Case in Saudi Arabia.”

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

UK fraUdsters jailed for oil & gas contract scam Three men have been jailed in the UK for their part in a procurement scam for oil and gas contracts in the Middle East.

The three men were found guilty over corrupt payments for passing on confidential procurement information to bidding suppliers. A fourth man has also received a suspended sentence and community work.

The contracts related to a series of high-value oil and gas engineering projects between 2001 and 2009 in Iran, Egypt, Russia, Singapore and Abu Dhabi. The confidential information corruptly supplied to bidders was held by companies that undertook procurement for the projects. The defendants, who were engaged as agency workers by the procurement companies, had access to this information. They indicated to suppliers who were bidding for the contracts that information could be made available if they agreed to pay for it. Disguised as “consultancy services”, the illicit payments were shared out amongst the co-conspirators.

The investigation began in April 2008 as a joint operation between the Serious Fraud Office (SFO) and the City of London Police. It was triggered by allegations relating to a project in Singapore, but it soon became apparent to the investigators

10 10

CONSTRUCTION CONSTRUCTION MIDDLE EAST MIDDLE EAST

September March 20122011

that a number of other projects were also tainted by corruption.

The contracts related to five projects: Styrene Monomer Project, Iran; QASR Gas Gathering Project, Egypt; Sakhalin Island Project, Russia, Singapore Parallel Train Project; and Hydrogen Power Project, Abu Dhabi.

A SFO spokesman said: “They indicated to suppliers who were bidding for the contracts that information could be made available if they agreed to pay for it. Disguised as ‘consultancy services’, the illicit payments were shared out amongst the co-conspirators.”

In passing sentence, HHJ Deborah Taylor, said: “All this was done without the slightest regard for the interests of others. Your activities in connection with these conspiracies had little, if anything, to do with the interests of those engaged with the project, but were parasitic, leeching money for your benefit.”

Commenting on the sentences, SFO Director Richard Alderman said: “Demanding backhanders in exchange for confidential and advantageous information saps business and is completely unacceptable. Hopefully these sentences will ring out the message that the justice system will ombat wrong-doing like this.”

AzerbAijAn wAnts 1km title the oil-rich country of azerbaijan is planning to steal the Kingdom tower’s title of world’s tallest tower. developer avesta group says the azerbaijan tower will be 1,050m tall and have 189 floors. the project will be part of a larger mixed used development that will serve as the focal point of the Khazar islands, a $100 billion city made up of 41 man-made islands on the caspian sea. Plans

for the project also include shopping malls, university campuses and a race-track capable of supporting formula one races. the estimated cost of the tower is expected to be $2 billion with a completion date of 2019. With many gcc companies already supplying to the country it could also boost the region’s own construction industry. cmme also understands that

Kuwait is once again looking at building its own 1km-plus building. the project which was first announced in 2005 is currently undergoing viability studies.

When cmme recently approached as+gg, the architect firm behind the Kingdom said that it was unable to share any more information on the project at the request of the ‘client”’ could the world’s tallest tower be getting even taller?

OCI reCOvers equIpment Egyptian construction company orascom Construction industries has revealed that it managed to quickly recover its machinery despite being close to the protests that rocked Egypt last year. osama Bishai, managing director of oCi said: “We had some minor difficulties during the curfew period; there was a limitation in people’s mobility and we had one or two sites that were close to Tahrir so those were affected a bit. once the curfew ended, however, our operations returned to normal.

in general, i would say those were minor slowdowns, but there was no negative impact.”

Bishai added that he is unconcerned over losing revenue from tenders agreed with the previous regime.

“There are systems and procedures and there is a tender law that is respected by all parties. As far as the actual tenders are concerned, i have to admit that the majority of the projects that we get involved in (the barrage, the new metro line and power plants) that have an

Excavator worker buried alive A Pakistan worker has been killed during the digging of a trench in the northern emirate of Umm Al Quwain in the UAE. “The accident occurred during the drilling process,” explained Lt Col Khamis Saleem Buharoon, the director of the police operations department.

“The four workers

were returning to the sandpit after installing electric cables when their cluster collapsed and they got buried in the sand. Police are investigating with the company because it had neglected some safety procedures like pouring water on the desert sand to prevent it from moving.”

international component, the terms and conditions are very clear and the procedures are very clear as well. So it has nothing to do with politics.” meanwhile engineers at an abandoned nuclear plant construction site in the country have started dismantling equipment and machinery after looters damaged parts of the station, the Al-masry Al-youm daily reported. Engineers from Cairo arrived in the north coast city of Dabaa and removed the equipment from the site, which has sparked environmental protests.

UAE To BUy BrAziL EQUiPmEnT? UAE investors have been invited to invest in Brazil’s construction equipment sector.

During the “Brazilian Trade Mission to Middle East” in February held at the Al Bustan Rotana Hotel in Dubai, investors from the UAE and the Middle East met a delegation of 47 Brazilian companies at a two-day conference.

The event titled: “Invest In Brazil” saw 15 Brazilian private companies and governmental institutions will present projects in the infrastructure (ports, railroads, energy) and real estate (retail, hotels, logistics) sectors before an audience of potential co-investors and partners from the Middle East.

Mauricio Borges, president of Apex-Brasil said: “Brazil has enjoyed relatively high economic growth rate, which is manifested by the high levels of production, income, employment and foreign investment. According to recent statistics,

the country’s middle class has jumped from 35 per cent to 60 per cent of the population over the last decade, which underlines the exemplary economic achievements of the country.

“The favourable economic conditions have opened lucrative investment opportunities for foreign investors, particularly those from the UAE and across the Middle East who are looking to expand their investment portfolio in South America.

He added: “The Brazilian Trade and Investment Promotion Agency, in collaboration with key investors from the Middle East and Brazil, is therefore confident that we will have a very productive meeting at this year’s Brazilian Trade Mission to Middle East.”

Brazilian company Odebrecht was awarded a $285 million contract for the construction of the second lane of the Abu Dhabi airport in 2009.

Libya pays up for lost Turkish equipment Libya’s national Transitional Council (nTC) has agreed to pay $400 million of a total $1.4 billion in repayments to Turkish contractors for projects completed ahead of domestic clashes, according to Turkey’s Economy minister zafer Çaglayan Turkish construction companies had to suspend projects in Libya following last year’s unrest.

Companies said they failed to receive $1.4 billion in total for the projects they had completed prior to the problems in the north African country. Turkish companies left $100 million in deposits in Libyan banks, while they also suffered losses to their construction equipment during clashes and lootings.

A large majority of Turkish construction projects, worth $15 billion, are still underway and are expected to be resumed in the war-torn country.

September 2011 March 2012

CONSTRUCTION CONSTRUCTION MIDDLE EAST MIDDLE EAST

11 11

News Round-Up

A-MAp AiMs for 1bn AED

ABU DHABI HIGHWAY BIDs WAnteD

T

he Department of Transport (DoT) in Abu Dhabi has invited local and international bids for a new Abu Dhabi-Dubai motorway (E311) which is expected to be completed by the end of 2014.

The Dh2-billion project aims at reducing traffic congestion on the current main road connecting Abu Dhabi to Dubai (E11), and providing a new strategic link between the country’s two most populous emirates, as well as creating new points of entry to the city of Abu Dhabi, Abu Dhabi International Airport, and Yas and Saadiyat Islands.

The motorway is one of the biggest infrastructure projects the DoT is working on as part of its Surface Transport Master Plan (STMP).

It will serve the Khalifa Port Area and the South Shamkha, Wathba and Baniyas residential areas and labour camps, and will accommodate light vehicles as well as trucks.

The road will also cater to the new Khalifa Industrial Zone (Kizad A and B) at Taweelah as the road is being designed to accommodate up to 7,000 vehicles per hour. The new main road will also facilitate connectivity to Al Ain as it links up with E22 (Abu Dhabi-Al Ain main road) and the rest of the road network in the Emirate of Abu Dhabi.

The motorway will be 62km of dual carriageway starting at the end of Emirates Road in Seih Shuoaib through Al Maha forest and Khalifa Port Industrial Zone (B) and will join up at the Sweihan Road (E20) interchange.

The construction will be executed through two tenders. The first tender is to construct 34km with three interchanges; the second will be to lay 28km and will also include three new interchanges and modification of an existing one.

The main road will also have a number of protective structures for service lines, especially for gas pipelines on the route. It is expected that the work will be completed in 30 months.

Executing the project through two separate contracts will ensure competitive pricing, reduce

12

CONSTRUCTION

MIDDLE EAST

March 2012

project risks and will expedite the completion and delivery.

The road project is the result of detailed surveys on traffic volume between Abu Dhabi and Dubai. It will serve numerous local commuters along the way and provide an alternative road to the current Abu Dhabi-Dubai main road (E11).

Some 800 light columns standing 30m tall at 300m intervals will light up the new main road.

It will follow best sustainable standards aimed at reducing energy consumption to be environmentally friendly and reducing operational costs. Sustainability will be achieved by reducing power demand in the off-peak periods.

For optimal road safety, the new road will feature six lay-bys, three in each direction of the main road at 20km intervals. The road shoulders will be three metres wide.

The 20m-wide median is designed for a staged upgrade and future expansion through the addition of two lanes in each direction, if needed.

The lay-bys are designed for emergency use by light vehicles and heavy trucks and they will also serve as patrol point for police, ambulance, and emergency vehicles.

In addition, the road will have five points allowing for U-turns for emergency by official vehicles. Adding to road safety will be a rainwater drainage system. It will be fenced up on either side to prevent camels crossing the road.

Abu Dhabi-based parts and service provider A-Map is aiming to surpass $272 million in revenue by 2014.

Like local rival, Zafco (which is also aiming to surpass $1 billion in revenue) A-Map has defied the slow-down in the local economy and grew 60% in 2011.

A-MAP is planning to consolidate its growth further in 2012, and increase its domestic distribution network with plans to open a distribution facility in Abu Dhabi. sustained growth is expected throughout 2012 in both revenue and manpower, with the company aiming to increase its annual turnover to Dh1billion by 2015. the region has demonstrated strong growth since the global economic downturn, says one prominent auto industry leader, as interest builds ahead

of the region’s only exhibition dedicated to commercial vehicles, parts and services.

Year-on-year growth of Dubai re-exports in workshop equipment, tires, batteries, parts and systems, and accessories has surged, and the region has seen significant movement. “there is a huge construction boom in saudi Arabia at the moment and the region is attracting a lot of interest as a result. Companies are focused on expanding their vehicle fleets, and the increased demand for quality parts for these vehicles increases simultaneously,” said Asad Badami, managing director for A-Map Having previously only focused on passenger cars, Badami says that there has been a great demand for products within the commercial vehicle industry from clients locally.

Not tyre-iNg re-exports in the UAe hit were up 14.5% to a record $66 billion last year, compared to 2010 level, Dubai Chamber said in its annual report for 2011.

News Analysis

Euro Auctions praises high ME demand Auction house Euro Auctions looks at a return in confidence to the market.

REGION GOES BACK

According to Euro Auctions, the main interest currently from Middle Eastern buyers and contactors is for good late model, low hours Backhoes, predominantly CAT 432e’s and JCB telehandlers. CAT and Manitou are also in demand. Demand for machinery remains high with infrastructure construction projects planned across the region.

Prices up The price of equipment on auction floors was up by 20% on 2009.

Buoyant North Africa From mid-June 2009 to late 2010, the North African market demand for plant, machinery and equipment was extremely buoyant.

Returning confidence The North African markets have also stabilised and showing confidence, says Euro Auctions.

Stocks replenish Stock levels are back to 2008 levels.

14 14

CONSTRUCTION CONSTRUCTION MIDDLE EAST MIDDLE EAST

September March 20122011

F

ollowing the crash of the world’s construction markets, the movement of second hand plant and industrial equipment around the globe proved to be highly volatile and not without surprise. The fortunes of plant owners, plant buyers and plant sellers have changed over the last 12 months, but what is the real global story?

With limited availability of brand new equipment and machinery in 2011 the trading market for pre owned construction equipment, mining machinery, access equipment, screening and crushing plant, diggers, dumpers and dozers and all things inbetween became buoyant. Extremely buoyant – to the point that many makes and ranges of low hour’s equipment under two years old began selling above the price they were when they were new.

Following three years of sales drought, in 2011 the major plant manufacturers felt that confidence

was returning to the market and had begun producing stock again, but not at the volumes previously seen prior to mid 2008.

In early 2011 stock levels were still low and market demand manifested in a levelling of prices across Europe and the cost of brand new equipment was 20% up on prices in June 2009.

Manufacturers were capitalising on market demand with substantial price hikes. The second hand market had always been strong, but these actions revived the market for good used equipment across the globe, regardless of make, model and year with prices strengthening for late-used and nearly-new equipment, with the strongest rallying in the 12 to 24 month class. But what was the global trading platform like for used plant and industrial equipment?

The last two years have seen the trends at auction changing. The global interest in 12 to 24 month

old plant is at an all time high. Dealers unable to purchase new machines from manufacturers are scouring the auctions either for stock, or machines to meet the requirements of current clients. What sells at auction is good low hour’s stock, with anything good attracting buyers, however the shift is now expanding to older machines. With 12 to 24 month old stocks depleting, buyers are now interested in stock from 24 to 48 months old. Once the route for disposal of ex-hire equipment, hire companies are replenishing stocks from auction and also hanging on to plant for much longer that previously was the norm.

From a global view demand in the Middle East remains high with infrastructure construction projects planned across the region, and noticeably in Dubai, Saudi Arabia and Qatar. Because of the current lack of new machinery, and rising second hand prices, there seems to be a trend for Middle Eastern owners to hold on to redundant plant.

With no need to sell, the stock is increasing in value and owners do not wish to drop prices.

From plant auctions in the UK and Europe, the intelligence shows that plant is still being shipped to the Middle East, predominantly Dubai.

Even in light of the construction slow down, access equipment and cranes (both mobile and static) are still finding their way into the region, destined for dealers in the Middle East and likely to be shipped on to end users in other countries, predominantly in the Pacific Rim region. The main interest currently from Middle Eastern buyers and contactors is for good late model, low hours Backhoes, predominantly CAT 432e’s and JCB telehandlers. CAT and Manitou are also in demand. Older model dump trucks from Volvo, that are getting a little long in the tooth, are highly sought after and CAT 740 dump trucks are always in demand.

From mid June 2009 to late 2010, the North African market demand for plant, machinery and equipment was extremely buoyant. The increasing demand from countries in this region was reflected

“BECAUSE OF THE CURRENT LACK OF NEW

MACHINERy, AND RISING SECOND HAND PRICES, MIDDLE EAST OWNERS HOLD ON TO REDUNDANT PLANT.

”

at auction with the trend for smaller excavators, dumpers and access equipment, soon trading up to larger machines and specialising in certain brands.

Libya, Egypt, Morocco, Iraq, Lebanon and Oman were all really active. The improvement in these markets was marked and it was anticipated these countries would continue to show eventual interest in larger pieces of equipment. The 2011 unrest in the North Africa region due to the ‘Arab Spring’ saw demand for plant and machinery come to a grinding halt. However, with economies stabilising, confidence has returned to the region and buyers from Sudan, Egypt, Libya, Algeria and Morocco began trading again.

West central Africa currently has a good appetite for logging and mining equipment.

Predominantly Ghana and Nigeria are evident at auction and plant dealers are regular buyers.

The larger European contractors are bringing equipment with them as part of the project infrastructure. Similarly, many of the project teams in the region from China are bringing less than reliable home brands, which is creating a market for more reliable USA and European makes of all equipment.

Two factors are affecting the Australian home market; the current exchange rate and the series of natural disasters that sadly hit that country.

The exchange rate between the Australian Dollar and Pound Sterling is making transactions from the northern to the southern hemisphere very attractive. The cyclone and flooding in Queensland, Victoria and New South Wales in early 2011 was responsible for an increased demand for

plant and machinery in Australia as the clean-up operation got underway – and is still ongoing.

With the economy in the Far East (predominantly China) booming, demand for raw materials was high, with Australia supplying that demand, with the result being a need for heavy excavating, earth moving and crushing machinery. Australia is mining everything from copper to coal, from ore to shale fuel. In 2011 efforts to get as much equipment down-under as is possible was a priority. This trend is likely to dramatically increase and extend well into 2012, with Australia always looking for late year, low hours heavy earth moving and mining equipment, with Volvo, Komatsu, CAT and JCB being the preferred makes.

The sad events in Japan in 2011 were expected to put manufacturing in that country into a decline for a considerable period of time and this is still evident in early 2012. A two year void is predicted for new machinery coming onto the world market and as a result the supply by manufacturers such as Takeuchi and Komatsu are expected to set a price rise with availability being reduced. The Japanese home market will put huge demands on stocks of equipment for the rebuilding programme, the ripples of which will be felt across the global economy. The price of second-hand Japanese equipment is also expected to continue to rise around the globe and will become evident at the next Euro Auctions sale.

By contrast, Hong Kong is quiet, with demand in this region slowing down, although this may be a temporary measure.

September 2011 March 2012

CONSTRUCTION CONSTRUCTION MIDDLE EAST MIDDLE EAST

15 15

Heavy Hitter

16

TIME TO CRAWL CONSTRUCTION

MIDDLE EAST

March 2012

Hitachi unveiled one of its largest ever deals in the region last month.

Now the company is considering how it can build a solid future here.

W

ith the Middle East region being such a vast and not always closely linked-up region, the open day remains the principle opportunity for manufacturers to gather their dealers and regional distributors together.

For a few hours, or sometimes days, iPhones and Blackberry’s can be stowed away and everyone can talk about the stuff that really matters, business and equipment.

It is also a rare opportunity for some to talk directly with OEM presidents about a new chassis or why they really should upgrade their stock. (It also a great opportunity for erstwhile hacks to meet some of the top brass.)

CMME arrives at Hitachi Middle East Construction’s first open day in February with Tomohiko Kurose, VP International Sales Group Hitachi Sumitomo Heavy Industries Construction Crane leading the event.

Kurose is there to present a key giving ceremony to one of Hitach’s best customers in the region, Abu Dhabi’s AAA Construction Equipment Rental, but first he wants to talk about the company’s special relationship with the region.

“We believe in cultivating long term relationships,” says Kurose. “Which is why we are doing business with reputable and successful companies like the ones that are here today. This really is the best of the best here.”

Kurose adds that the company will be encouraging dealers to ask questions throughout the event, He reveals that AAA Construction Equipment’s purchase of a SCX2000A-2 crawler crane was also the 200th crane that HMEC had sold in the region since being formed in 2007. Painted gold – Kurose describes it as a limited edition – the crane is destined to become an easily identifiable fixture in the Abu Dhabi scene.

“It’s a new model of crane,” he tells me, before adding that the crane is not only the 200th sold but, in a nice piece of symmetary, is a 200t capacity

unit. ”This sale is a remarkable success for us,” he says. “I’m proud it’s going to AAA.” AAA was established 30 years ago by Salim Ahmed Nasir. He sits on the sidelines with his wife Nahid as their two sons Nabil Salim and Sajil Salim step up to accept the key.

The two brothers have purchased the SCX2000A-2 for its heavy duty performance in dynamic compaction and foundation work.

“This multi purpose crane with its strong line pull and synchronising of both winch drums will satisfy customer needs,” I am told on the sidelines.

“The company was established 30 years ago by my parents,” explains Sajil. “My brother and I joined in 1991 and from there we have grown the company.

Now we have two divisions: a trading and a rental division that sells Japanese construction.

The history of a crawler giant.

Hitachi Sumitomo Heavy Industries Construction Crane Co came out of the joining of two of Japan’s biggest brands in construction machinery.

While the business group is a collection of separate companies they all share the same business values (a Keiretsu).

Established in 2002, HSC-Crane is the result of a merger of two companies; Hitachi Construction Machinery Co. (est. 1949) and Sumitomo Heavy Construction Crane Co (est. 1963). The two companies started working together in 2001

by sharing research and development information regarding crawler platforms.

The company is led

by President Toshiyuki Natake and HSC cranes are distributed to New Zealand, Australia, the Middle East, India, Indonesia, and extensively through Southeast Asia. HSCCrane markets to North America under the brand name Link-Belt. In 1971 Hitachi Construction Machinery Co. produced the world’s first fully hydraulic crawler crane.

Today, large cranes, and those destined for

the market under the brand name Link-Belt, are manufactured

by Sumitomo. All other small cranes are manufactured by Hitachi. HSC-Crane owns 50 percent of the Chinese construction equipment rental company Sihenzhen International Construction Machinery Corp. It also wholly owns 100 percent of its Chinese subsidiary, Hitachi Sumitomo Heavy Industries Construction Crane (Shanghai) Co. Ltd.

March 2012

CONSTRUCTION

MIDDLE EAST

17

heavy hitter

the purchase of the crane is clearly a landmark in AAA’s progess. sajil says that the massive machine represents a sizeable upgrade on AAA existing fleet for sajil says that it has been purchased because the sense an improvement in the Abu dhabi market. “our fleet mainly consists of crawlers from 30 to 50t and this is an addition to that. with the recession (nearing an end), we feel that things are picking up and decided to purchase.” while AAA is now firmly under the control of the brothers, the pair are acutely aware of their importance. “we are here because of their resiliance and because they allowed us to grow as individuals and the company,” he says. his brother nabil says the decision to buy was determined by the types of projects underway in Abu dhabi. “this will be inducted into the fleet in Abu dhabi and this will be used in heavy duty work such as rock grapple, dynamic compaction; utilising its 25t winches as well as for heavy lift works.”

About the machine kurose adds: “this is a popular machine globally but i think that the model can be a success for our customers here because of its size.”

Focusing on Middle east hitachi is about to release a whole new raft of machines into many markets, including the latest genaration of Zaxis excavators at intermat later this year.

“As you know, we MAde the decision to MAke

hitAchi MAchineRy MiddLe eAst its own coMpAny within hitAchi And thAt hAs woRked out veRy weLL foR us, so fAR.” four types will be launched by hcMe - hitachi construction Machinery (europe) at the event, the 250-5, 290-5 and 350-5, which all now use a three-pump hydraulic system, plus the 470-5 which retains the two-pump system. “we develop new machines, concepts and specifications in accordance with customer and market requirements,” says yusuke kajita, general manager at hcMe. “for example, the european market demands comfort, efficiency and controllability. i believe that the Zaxis-5 is even more suitable to european requirements than the Zaxis-3. “the Zaxis-5 has better fuel efficiency, lower noise levels, excellent comfort and even ipod connectivity.” hcMe estimates the excavators eu stage iiiBcompliant isuzu engines reduce fuel consumption by up to 18%. despite these savings, according to hitachi construction Machinery Middle east’s boss Mutsumi kitai, the machines are not expected to be released for the Middle east just yet.

What is HMEC? Hitachi Construction Machinery Middle East Corporation FZE (HMEC) is wholly owned subsidiary of Hitachi Construction Machinery and indepedent from the European arm of the company. It provides product and support for the mining, earthmoving, construction, quarry, and forestry industries

throughout the Middle East and North Africa region (MENA). All Hitachi products are known for reliability, performance and cost efficiency in their specific applications and carry quality assurance to international standards. Sales and product support are available through the company’s network.

As we speak on the sidelines of the open day event, he tells cMMe that the company is considering producing and selling itsown range of excavators from india as it looks to lessen the pressure of the yen’s high price in international markets.

“As you know we made the decision to make hcMe its own company within hitachi and that has worked out very well for us so far,” the industry veteran says.

According to kitai the the company is exploring its options as new emissions regulations are introduced in other markets. he adds that the Middle east market’s proximity to india could work to its advantage.

At the start of the last decade, hitachi and indian behemoth tata engineering formed a joint venture to manufacture technologically advanced earth moving equipment in india. hitachi paid tata engineering $21.5 million for a 20% stake in telco construction equipment company Limited (telcon), a tata engineering earth moving equipment subsidiary. (consequently, tata engineering owned 80% of the equity.) the india market has gone to become one of the most important in terms of sales. for instance much of JcB’s recent success can be attributed to its presence in the market (see India is ready to serve you, Construction Machinery Middle East, January 2012). in hindsight the deal with tAtA has also proven to be a winning one for hitachi, and in future, according to kitai, the move could open up a whole new approach to markets that lurk nearby, including the Middle east region. “the relationships we have built there with tata have been very successful,” he continues. “it is a possibilty that we could supply the Middle east from india. he adds: “in terms of these types of machines (excavators) it makes a lot of sense.”

March 2012

CONSTRUCTION

MIDDLE EAST

19

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

Market Analysis

Where are the toWers?

Dubai’s stranglehold on the world’s supply of cranes has now been consigned to legend, but it leaves the question – where are the cranes now?

W

hen Dubai boomed, the crane became a symbol of its extraordinary growth. Scaling higher, in more numbers and faster than anyone could remember, the sight of cranes swaying above the city building its mini cities bewildered the watching world.

Along the elongated Sheikh Zayed Road, a financial district grew, as did the world’s tallest tower at its end. Towards the other, developments like the Palm, Marina and JLT were seemingly being

22

CONSTRUCTION

MIDDLE EAST

March 2012

lifted out of the ground by cranes at high speed, providing housing for hundreds of thousands.

Whether it was a third of the world’s cranes or just quarter, the truth was that for a brief moment of time Dubai was the tower crane’s temporary home.

At the same time inventories and orders boomed.

The long pipeline seemed so long, nobody bothered to wonder whether it could ever end.

Of course, we know now that it did come to an abrupt and painful end. The Dubai on the blueprints and tender sheets was not the same Dubai that was drying up in the sun. People weren’t arriving to fill the new houses and apartments.

Dominating Deira Dubai may once have had a quarter was it a third of the world’s total number of cranes, and in 2009, it saw the world’s largest hydraulic crane in operation on its maiden venture in the city.

Standing at a massive 20 metres tall, the Germanmanufactured LTM 112009.1 stopped shoppers in their tracks at the bustling Deira City Centre as the crane carried out maintenance work at one of Dubai’s most popular malls.

Deira City Centre was the crane’s first client as it assisted in completing the work in less than 30 hours in what would have otherwise taken an approximate 20 days.

The monster machine can lift up to 1,200 tons and cover an area over 100m-wide. Only eight of this machine is to be manufactured and this is the first one to be released in the world.

The big developers like Emaar and Nakheel pulled funding from their projects and as the construction plans were reeled in the cranes began to stall and by 2008 had almost stopped altogether.

Come to 2012, and things are beginning to improve. Research specialist Ventures Middle East predicts construction contracts will rise by 25% in 2012 and MEED estimates that the UAE has the highest level of construction activity per capita in the world. But even if all the work started to tomorrow, it would be at least a year before most would see cranes working. There is also a great deal of cynicism to overcome and the scars all too easy to see.

Having disentangled itself over many issues regarding ownership and financing, Nakheel admitted defeat on Dubai Waterfront, one of its flagship developments in January. The drawings and models were spectacular, with canals and manmade islands creating a metropolis for over a million people in an area twice the size of Hong Kong. The cranes bought to build it have now been sold.

Riding high on the success of the Palm, the cranes would have built the dense clutch of skyscrapers carving the 139 million sqm of marinas, canals and parks. But now, the developer of the Palm has decided to place the 13 cranes up for sale for $272,000 each. “Some of the tower cranes are partially erected and remain stocked in unopened boxes as delivered by the manufacturer,” an advertisement promoting the sale said.

The short sharp shock of Dubai has had a dramatic but ultimately healthy effect on the local crane suppliers.

Local crane representatives now have a radically different approach to how they are doing business.

The sudden fall off of business meant many of them

March 2012

CONSTRUCTION

MIDDLE EAST

23

Market analysis

NFT in Riyadh The MDT 268 is one of the recent Potain Topless MDT crane designs. It offers fast erecting and dismantling times without compromising capacity.

And it has a new folding jib – an industry first for topless cranes.

NFT, an Abu Dhabi based Potain cranes dealer and one of the largest tower crane owners in the world, purchased many Potain MDT 268 tower cranes which were used on Saudi Arabia’s most prestigious construction projects.

This crane, along with its bigger sister the MDT 368, was considered the “star” tower crane of the Princess Nora bint Abdulrahman University project in Riyadh, the world’s largest womenonly university where 150 cranes were used to build the US$11.5 billion project.

The MDT 268 with its topless design without any cathead and

had to work hard with their oeM partners to redeploy their equipment.

Some like potain and Manitowoc dealer nft have looked much further afield than perhaps they would have done in the past. nft, for instance, has in the past few years shipped as far as Singapore and azerbaijian. it has also turned to Saudi arabia for revenue. the kingdom is familiar territory to ceo nabil al Zalawhi, who started the operation there in the 1980s. as dubai faltered projects such as the princess nora university proved fruitful new ground for its fleet, taking on dozens of cranes.

Wolffkran tower cranes have also found the resilient Saudi arabian market to be a desirable location in the downturn. it recently supplied cranes to the Mekkah clock tower development but perhaps its most significant move for its long term success in the region has been its unique relationship with local player kanoo Machinery group.

Since forming a joint-venture in 2007, the two companies have taken the radical move of moving from a selling business to a rental operation. the newly re-shaped company scored a major coup last year by penning a five-year deal with habtoor leighton group to supply, install and dispose of existing equipment and plant. the first part of the arrangement saw the company supply five cranes and the removal of old stock from the Mafraq hospital on the outskirts of abu dhabi. going forward the arrangement sees Wolffkran arabia first option on future projects. budgets are beginning to loosen up in the uae once

24

CONSTRUCTION

MIDDLE EAST

March 2012

tie-bars, could be placed in close proximity without needing to build the cranes too high.

This saves contractors both time and money, provides optimized operations and a safer working environment.

The versatility and speed of erection and dismantling of the MDT 268 also allowed the main contractor Saudi Oger to follow and even undercut its extremely tight build schedules.

The patented folding jib on the MDT 268 also helps with one of the biggest problems in the construction of cooling towers — dismantling the crane once construction is complete. This is because the jib’s radius is greater than that of the cooling tower, meaning it cannot be ‘climbed down’ without the jib coming into contact with the structure. The folding jib on offers an innovative solution to this problem.

“While Saudi arabia iS the doMinant

Market, crane SupplierS are aWare that Qatar iS preparing itS oWn prograMMe of SWeeping developMent.”

more and Wolffkran is currently working on the restarted burj residence project in dubai. as cMMe went to press it was revealed that hlg has won the $515 million contract to help build the habtoor palace, las vegas-style hotel close to the project. it would be easy to envision Wolffkran arabia moving on to the 25 storey project. there are other projects beginning to return to life in the country too, especially in abu dhabi where since the turn of the year, the government has green-lit projects previously stalled. While Saudi arabia is the dominant market in the gcc, crane suppliers are accutely aware that Qatar is preparing its own programme of sweeping development. a total of $120 billion will be spent on the World cup and there are hotels, stadia and infrastructure to built. the country is currently exploring its options in terms of what exactly will be required but cranes will be essential in scaling the city. the lessons of dubai will no doubt be foremost in the minds of tasked with supplying them.

Online Auction

Wednesday, 28 March

No deposit required for Middle East registered users!

Excavators

Telehandlers

Compactors

Wheel Loaders

Trucks - Off Road

Skid Steer Loaders

Looking for good quality older construction equipment?

Look no further than IronPlanet the leading global marketplace for used construction equipment. Visit our website to see the complete list of equipment, review the guaranteed inspection reports, and place your bids.

Need specific equipment?

Text SEARCH to +44 753 740 4852 for a call from our multilingual agents *Texts may be charged at international rate, please refer to your network for charges

Inspected and Guaranteed www.ironplanet.com • +971 (0) 4 8019020 To consign equipment for our next auction contact your local Rep or call +971 (0) 4 8019020

IronPlanet Europe now with two auctions per month - 2nd & 4th Wednesday

Show Preview

BOOM TIME SAUDI ARABIA The Construction Machinery Show comes to Jeddah in April with Saudi Arabia’s spending spree making it the dominant construction market in the region.

$1 3 0 N O I L L BI Dammam

$14bn

Jubail Refinery

Madinah

12%

Riyadh

of contracts in Q4 2011

$7.8bn King Abdullah

Financial District

Makkah

$14.2bn Haramain high-speed Rail Project

SHOW TIME

Join us at the dedicated machinery event in April.

Jeddah

$20bn Kingdom City

March 2012

CONSTRUCTION

MIDDLE EAST

27

Show Preview

Wolff works in Makkah

W

ith North Africa in turmoil, Gulf states such as the UAE and Oman slowly recovering from the effects of the global downturn, Qatar’s World Cup boom still two years away and Iraq volatile; the focus for the Middle East construction industry in 2012 is Saudi Arabia.

The Kingdom is experiencing its biggest boom since the 1970s and 1980s as the country pumps billions back into its economy. With oil prices still at historical highs a window of opportunity has opened and the country is acutely aware that it has to build fast while the rest of the region takes a pause for breath.

However, even a rich country like The Kingdom will struggle to fund its programme should oil prices fall and other countries begin to tap into the region’s resources. Qatar, in particular, will soon be fighting for capacities at cement plants. Machinery too could be in short demand if inventories aren’t properly stocked by the time the World Cup building begins in earnest.

Despite pledging $130 billion to build the new roads, houses and cities it is already facing difficulties in managing the scale of construction under-way.

There was a surge in the value of awarded contracts surged during the last quarter of 2011, which reached $25 billion, and led to a recordsetting year in 2011 on the back of heavy capital spending by the government. The total value of awarded contracts catapulted to $72 billion in 2011, surpassing the previous high of $55 billion that was reached in 2009. In the second half of 2011 alone, the value of awarded contracts reached an impressive $50 billion, which was higher than the total value of awarded contracts during all of 2010.

28

CONSTRUCTION

MIDDLE EAST

March 2012

Mecca is a small town surrounded by craggy mountains and is currently growing at the tempo that Dubai once was. Since 2004 a compact building complex with over 1,000,000m2 of useable area has been built, to accommodate the many Muslim faithful, who travel to the mosque and holy sites in Mecca. The al-Haram mosque is currently surrounded by a forest of construction cranes, meaning that you can hardly make out the Kaaba anymore – the spiritual centre of the town.

The project on holy ground posed some challenges for the employees of Wolffkran.

“THE UNPRECEDENTED $72 BIllION IN CONTRACTS

DURING 2011 WAS PROPEllED By THE AMOUNT OF MEGA-PROjECTS THAT WERE AWARDED DURING H2.”

The transportation sector garnered the largest share of awarded contracts during the fourth quarter, accounting for 32 percent of the total value.

While the power and industrial sectors accounted for 20 percent and 12 percent, respectively, according to the National Commercial Bank (NCB) Construction Contracts Index Fourth Quarter 2011 report.

The unprecedented $72 billion in awarded contracts during 2011 was propelled by the amount of mega-projects that were awarded during H2.

Nearly 69 percent of the value of the contracts awarded during the year came during H2. Moreover, the value of awarded contracts in 2011 grew by 155

percent over 2010 and by 32 percent over 2009. The government took an active role to increase the private sector’s participation in strengthening the economy.

According to the Ministry of Finance’s end of year press release, approximately 2,600 government projects were signed with the private sector that were valued at an estimated SR148.3 billion.

The Construction Contract Index (CCI) ended the year by achieving its highest level in December, which was 453.6 points. The CCI reached 406.5 and 419.8 points during October and November, respectively. The CCI grew by 273.6 points from the end of 2010. The transportation, power and

They had to pre-assemble the cranes outside of the premises, as only Muslims are allowed to enter the holy site. For this purpose numerous training sessions were carried out in advance with technicians from Germany and partners of the Roots Group about the assembly and disassembly of the crane. With space tight, an efficient site was maintained to ensure the required number of construction cranes could be used in the small space available.

In a first construction phase 20 luffing cranes were assembled. The space saving luffers are impressive due to their assembly friendly construction and a very low individual piece

22-25 April 2012 Jeddah Centre for Forums & Events Kingdom of Saudi Arabia weight. In the second phase there followed a pack of luffer and overhead gantry models in the middle to upper load torque area. The free standing tower heights of the red giants also provide a particular advantage on the cramped building site. It is planned that the total of 44 Wolff cranes will be in use until May 2012.

In the last few years a significant growth could be observed in Mecca. This has been accompanied by urban redevelopment which is particularly noticeable around the holy site. Entire hill settlements have been cleared and the areas straightened to make space for large buildings, primarily pilgrim hotels.

South of the holy mosque a gigantic hotel complex

is emerging, with the highest tower, the “Mecca Royal Clock Tower” at its centre, which will form the new city crown at over 600 metres. This tower will not only be the highest building in Saudi Arabia, but also the second highest skyscraper in the world, after the significantly higher Burj Khalifa (828 metres) in Dubai.

industrial sectors were the main growth drivers in 2011, contributing approximately 48% of the total value of awarded contracts.

However the rising price of building materials could increase the cost of new homes and hit a slew of major infrastructure projects central to the public spending plan.

Al Jouf Cement, a Saudi maker of the building materials, told Arab News last month that it had raised domestic prices by 30%.

The main problem is a dispute between one of the Kingdom’s biggest developer’s Saudi Aramco and its cement suppliers and controls on domestic production and supply.

In an effort to control domestic cement supplies, the Saudi government has banned the export of cement as many regions such as the Western region that surrounds Jeddah and the holy cities of Mecca and Medina are suffering a shortage in building materials.

With prices escalating, Saudi Aramco reacted by limiting the fuel it supplied to producers of cement in December. In combination with the new export controls, Aramco’s pressure could be debilitating.

“In the last two to three months, prices have gone up about 20 per cent year-on-year,” said Farouk Miah, an analyst at NCB Capital told Arab News. “Aramco is refusing to give extra fuel for cement plants, and the cement companies are concerned that a lot of supply is supposed to be coming up. If and when Aramco gives this fuel, it will ease the bottleneck.”

Within the Kingdom, it is expected that the matter will soon be resolved. It needs to be. The list of projects awarded in the last quarter of 2011 alone shows what’s at stake for the construction machinery industry.

While the Eastern Province has provided the largest share of the value of awarded contracts by region in 2011, the Western region that orbits

Show timings: 5-10pm daily

CRAWlER CRAnES MoBIlE CRAnES ToWER CRAnES GRADERS loADERS CoMpRESSoRS CRuShERS FoRK lIFTS SKID STEERS pIlInG RIGS ExCAvAToRS ACCESS plATFoRMS ...

Co-located with Saudi Building & Interiors Exhibition

Organised by

www.constructionmachineryshow.com March 2012

CONSTRUCTION

MIDDLE EAST

29

Show Preview

Saudi Arabia’s Public Investment Fund signs three rail contracts Three contracts totalling $613 million were signed in Saudi Arabia on Saturday January 7, for the construction of maintenance service buildings and stations along the country’s longest stretch of railway.

According to reports from the Saudi Press Agency, the state funded 2700km North/ South track will link Riyadh to the Jordanian border and pass through Jubail Industrial city, Dammam Port and Rass Azzour. Upon completion, it will be

The contracts were for the 2700km North/South track – KSA’s largest

Makkah made a significant contribution in Q4 with approximately 37 percent or $8.8 billion worth of contracts being awarded.

The Madinah region had significant contracts awarded in the transportation and water sectors, which contributed to its 12 percent share of awarded contracts, the NCB report said.

Approximately $14.2 billion worth of contracts were awarded in October, making it the second highest value of awarded contracts by month after July’s $18.6 billion. The transportation and power sectors represented the highest value of awarded contracts during October.

Within the transportation sector, a contract was awarded by the Saudi Railways Organization (SRO) to a consortium led by Al-Shoula Group for the second phase of the Haramain High Speed Rail Project in the amount of $8.7 billion. Phase two of the project includes building 25 rail bridges, 157 crossings, including wadi bridges and culverts and 70 animal crossings.

In the power sector, the Saudi Electricity Company (SEC) signed several contracts, of which two where valued around $2.6 billion. The first contract was awarded to Arabian Bemco in the amount of $1.4 billion. The contract calls for Arabian Bemco to convert the PP10 simple cycle power plant in Riyadh to combined cycle technology. The PP10 will add 1,300MW capacity to the existing 3,400MW facility. When completed in 2015, PP10 is expected to be the largest combined cycle plant in the world.

The second contract by SEC was awarded to South Korea’s Daelim to build a second power plant at

30

CONSTRUCTION

MIDDLE EAST

March 2012

Shoaiba. The combined cycle power plant will have a capacity of 1,238MW and will be powered by natural gas. Construction is expected to be completed by the third quarter of 2014.

The Sadara Chemical Company (50 percent-Dow Chemical Company; 50 percent-Saudi Aramco) awarded several contracts within the petrochemical sector worth approximately $2.3 billion. Four contracts worth approximately $1.7 billion were awarded to Daelim. The site of construction work will be at the Jubail New Petrochemical complex in Jubail Industrial City.

The Ministry of Transportation awarded numerous contracts to local contractors worth approximately $613 million. This brings the total value of contracts in the roads sector that were awarded by the government to approximately $3.19 billion during 2011. Many of the contracts in October focused on the construction and completion of new highways, implementation of

the country’s longest railway.

“The finance minister and head of the Public Investment Fund signed three contracts for the North/South railway, worth 2.3 billion riyals,” SPA said in a statement.

The largest of the contracts was signed with Al Rashid Trading and Contracting Co for around $200m. Other contracts were signed with Yabi Markazi Company and Sulaiman Al Qudaibi and Sons.

Eventually the

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

secondary roads and the maintenance of existing roads across the Kingdom.

The Ministry of Higher Education was actively involved in the development of the education sector where it awarded about $533 million worth of contracts during Q3. The total value of contracts awarded in the education sector during 2011 reached approximately $3 billion.

The value of awarded contracts declined to $4 billion in November with the power and industrial sectors providing the highest value of awarded contracts. SEC awarded two contracts to Al-Fanar Construction Company in the power sector in the amount of $506 million.

The SEC also awarded two additional contracts worth $319 million related to the construction of two electricity substations in the cities of Dammam and Taif. Both substations are expected to be completed within 30 months.

According to the NCB report, about $800 million worth of contracts were awarded in the industrial sector during November alone. The largest contract was awarded by the National Mining Company to STX Heavy Industries for the construction of an iron ore pelletizing plant at Wadi Sawawin in the city of Tabuk. The contract is worth approximately SR1.7 billion and is estimated to have more than 125 million tons of commercial reserves.

A second contract in the industrial sector was awarded by GASAN Investment & Industrial Development Limited to Shenyang Aluminum & Magnesium Engineering & Research Institute (SAMI) in the amount of $293 million. Another contract was awarded in the transportation sector

pertaining to the Haramain railway project. The SRO awarded a $266 million contract to the UK’s Invensys Rail Dimetronic to provide the full turnkey signalling and train control systems. The contract includes a 12year maintenance period.

A significant contract was signed in the hospitality sector that was awarded by the General Organization for Social Insurance (GOSI) to Al-Latifa Trading & Contracting to construct the Hilton The $453 million contract for the Riyadh Hotel & Resort will involve the construction of a 20-story hotel tower covering an area of 49,000 square meters with 650 rooms.

The value of awarded contracts rebounded in December with a total of $6 billion. A mega-project was awarded in the industrial sector by the South Steel Company (SOLB) to the SMS Group and STX Construction Company in the amount of $2 billion.

The contract calls for the construction of a greenfield steel plant in Jazan Economic City.

The education sector had numerous contracts being awarded by the Ministry of Higher Education during December totalling approximately $773 million.

Within the water sector, the Saline Water Conversion Corporation (SWCC) awarded a contract to Sinopec International Petroleum Service Corporation (SIPSC) in the amount of $426 million.

The Kingdom’s focus to increase its capital expenditures coupled with a growing participation from the private sector to help implement these projects, played a crucial role in making 2011 a record year in terms of construction contract awards, the NCB report said.

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 March 2012

CONSTRUCTION

MIDDLE EAST

31

Show Preview

Saudi arabia’S biggeSt projectS project NaMe

Sector

VaLue ($)

coMpLetioN date

KHC – Kingdom City

Real Estate

20bn

Dec 2017

Sadara Chemical complex

Petrochemicals

20bn

2015

Haramain High Speed Rail

Infrastructure

14.2bn

2014

SATORP – Jubail refinery

Oil and gas

14bn

2013

Qast Khuzam development

Real Estate

13.3bn

2014

Saudi Kayan – Jubail petrochemicals complex

Petrochemicals

12.5bn

2013

Al Wasl Community

Real Estate

12bn

2018

Yanbu Export Refinery

Oil and gas

12bn

2014

Saudi Security Border

Infrastructure

12bn

2018

Aramco Manifa oilfield

Oil and gas

11bn

2014

Haramain High Speed Rail (phase 2)

Infrastructure

9.9bn

2014

Al Mozaini Riyadh East Sub Center

Real estate

8bn

NA

King Abdullah Financial Dist.

Real Estate

7.8bn

2014

Source: Zawya projectS MoNitor

City by the Red Sea Arguably the most spectacular development in the Kingdom is the ambitious plans to not only regenerate Jeddah but transform it into a dynamic and world class city.

Located on the Red Sea, several projects are either currently underway or in advanced stages of planning to achieve an optimal balance among the infrastructure components Saudi’s Gateway City.

Local government is implementing a comprehensive 20-year re-development programme involving initiatives such as the enhancement of the Khozama and Ruwais areas and the rehabilitation of the city’s central and historic districts. Many of the new developments are mega projects such as the SR99.75 billion King Abdullah Economic City and the SR42 billion Jeddah Hills. Jeddah Islamic Port, which recently expanded to 5 million TeUs is also to benefit from the country’s $2.3 billion port development fund.

Saudi Arabia’s state-owned Public Investment Fund and its unit Saudi Railway Co. have also begun inviting local and international consultants to design the Landbridge rail project, which will unite Jeddah with Riyadh and Damman on the Gulf.

The centrepiece to Jeddah will undoubtedly be the Kingdom Tower, the 1km high building that is destined to become a symbol of a country that is looking boldly to a new future.

According to Rany at Putzmeister and Terex dealer Medco, the Western Region is at the hub of what Saudi Arabia is looking to achieve.

“Saudi Arabia plans to invest billions in infrastructure, health & education projects; Western region currently remains the main hub of major projects such as: Makkah & Madinah high speed rail link, Rabigh power plants, King Abdullah economic city and Kingdom Tower,”says Rany.

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

Ahmed Alkooheji of the dominant distributor player, Saudi Diesel, agrees the Western Region is the area to focus on in terms of machinery.

32

CONSTRUCTION

MIDDLE EAST

March 2012

“The western Region has fast growing demands, and especially with the construction rebuilds that is going on for the last two years,” explains Alkooheji.

“Generally speaking higher oil prices means more construction products this year for all regions, which means the market demand will keep increasing and we want a piece of the cake, and we hope for a bigger piece every year.”

At the Construction Machinery Show the company will be displaying its range of excavators, wheel loaders, rock drill attachments, articulated dump trucks, fork lifts, concrete pumps, concrete batching plants, and hydraulic rock drills. The company is well established in the market and while it is has long standing relationships with Korean companies like Doosan (the company was present at the Norwegian launch of the new ADT, the DA40) and Everdigm it is riding the boom in the market and adding to its ranges.

“We will continue to focus on our strategic alliances with our Korean Partners, in addition to adding few more Construction related accessory/ products, like the newly acquired distributorship agreements with Montabert Rock Drills, Meka Concrete Batching Plants, etc,” says Alkooheji.

They will be in Jeddah in April, will you?

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

Gold Sponsor

Time is running out to book space at the Construction Machinery Show, the largest heavy machinery event in the GCC. With over 90% of the total 20,000 sqm now sold, this could be your last opportunity to participate in 2012’s best event dedicated to bringing together the region’s key manufacturers, distributors and buyers.

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.

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.

Special Report

The Tipping poinT Intermat returns to a much changed European market but does the new generation of technology reflect the challenges facing the old world?

Date 16-21 April 2012 Location Parc des Expositions de Paris-Nord Villepointe – France Visitors 184,519 visitors in 2009 Exhibitors 1,409 exhibitors in 2009 Organised by S E Intermat

34

CONSTRUCTION

MIDDLE EAST

March 2012

2

011 was a good year in construction – as long as you were a manufacturer.

Caterpillar, JCB, Doosan and many others had a great 12 months – JCB even recorded its best-ever - riding on booms in the emerging markets.

Their performance was unfortunately not reflected in the state of many of their home markets. Even as backhoes and excavators flooded out of factories and into the hands of contractors in Brazil, Saudi Arabia, China and India, the newspaper stands in North America and Europe were painting a bleak picture of failing government spending plans and economic meltdowns.

With the Pre-Intermat event taking place in January and the biggest event of the year due to return in April, manufacturers face an uncertain future in the traditional markets.

A show for the French market that also poses as a shop window for the Western Hemisphere, it will be packed with the latest and newest machines, the question is how many of those will be going to Munich, Madrid and Maine.

The dilemma for the organisers and the exhibitors of what is considered a regional event that has gone global will be to balance out the need to roll-out their kit while accepting that their main customers will be taking long haul flights to get there.

A new study by credit insurance company Coface highlights this problem.

“The situation of companies in the construction sector closely reflects the world, regional and national economic trends,” begins the report. “At a time when the world economy is characterised by divergences between countries, with a recession in the euro zone, there are significant disparities between countries

and subsectors. The construction sector was badly hit by the 2009 crisis, and a large number of payment incidents were still occurring in 2011.”

The eurozone crisis has demonstrated that within Europe it is impossible to look at the region as a single entity. Germany was booming at the beginning of 2011. Greece on the other hand, well, you know the rest.

According to Coface, companies have to face up to the intensity of activity in the construction sector varying wildly according to the impact of the crisis on the economy of the concerned country and according to sensitivity to economic conditions that varies from one subsector to another.

The Middle East is prime example of construction activity being strong in emerging markets that are making up for lagging development, “and this is particularly favourable to certain subsectors, such as public works and private and institutional nonresidential construction”.

Conversely, activity in the developed markets such as Europe and North America is either moderate or stagnant, with particularly large disparities in the residential construction sector linked to differences in demographics, economic environments, credit terms, fiscal legislation, stocks of vacant housing, and prices, says Coface.

Coface’s report is illuminating as it is not examining production volumes and restructuring benefits but the effect of a lack of liquidity in these markets.

“This fragile and variable economic climate, combined with changes in orders from the public sector and regulations as well as fluctuations in both costs of materials and demand, explain the increase in payment incidents during the early months of the crisis in 2008 and again from October 2011 onwards.”

The good news is that after a three-year decline and a 17% drop in activity over the period, the European construction sector at last almost stabilised in 2011,

particularly in the residential subsector, despite disparities between countries.

In a downturn decimated market, European countries can now be divided into three groups.

The first group is the one where construction has suffered the most, and “where the cleaning up will take some time”.

These countries: Ireland, Iceland, Spain, Denmark, the Netherlands, Greece and Central Europe, have been affected by significant excesses in pricing and supply, and keep seeing a large number of payment incidents.

The second group, which includes manufacturing powerhouses United Kingdom, France, Belgium and Italy, have suffered less from the crisis and business even bounced back in 2010. Despite this, a new decline has set in due to the persistence of excessively high prices. Payment incidents are still widespread, particularly in the UK where the number of corporate bankruptcies is the most significant.

In France, companies face tough competition and fight to win contracts even if this means sometimes tightening their margins while taking into account price increases for raw materials. There were fewer bankruptcies in the first quarter of 2011 than in the first quarter of 2010, although the number remains much higher than before the crisis.

The third group is made up of European countries where the crisis has not affected the construction sector: Germany, Austria, Norway, Sweden, Finland and Poland. Despite this Bankruptcies are nevertheless higher in construction than in other sectors, mainly affecting companies whose activity is regional and which work in a single sector.

For 2012, Coface forecasts a very modest advance in construction in Europe, if the upturn of the housing segment continues.

“The construction sector will, however, be affected by austerity plans. Public works and institutional building are expected to stagnate under the influence of budget restrictions. Construction of

Intermat’s ups and downs If there’s an Intermat construction show on that year it promises to be an eventful one.

Economic apocalypse?

Done that. Global health crises? Yep, done that too - twice. It’s fair to say that previous events have demonstrated an almost unerring knack of arrowing in on that year’s crisis. Indeed speak to the organisers of their show and they’re happy to share their unique gallows humour about the event’s hapless history.

“You could say we’ve not been lucky over the years,” says Veronique Arnal, sales director for Intermat. “In 2009 we had the economic crisis, then before that SARS and bird flu.”

The last year was the most turbulent in recent memory, particularly for the global construction industry.

The Arab Spring brought instability to the economy while the Japanese tsunami decimated great swathes. It’s bad news then that with us still recovering from those blows that Intermat is planning not one but two events this year: Intermat and Intermat Middle East.

“We are introducing lots of new things to both shows,” continues Veronique. “But we know we have a great event and it will be the biggest in 2012.”

March 2012

CONSTRUCTION

MIDDLE EAST

35

Special Report

Facts about the show Intermat takes place every three years. The show is located at the Parc des Expositions de Paris-Nord Villepinte – France and covers 375,000 sqm (exhibition area). Show organizers say Intermat is the only show to provide a 20,000 sqm outdoor demonstration area, and that in 2009, there were 1,470 exhibitors (67% of whom were international, representing 44 countries).

Exhibitors at the show will include: machinery and equipment manufacturers, components, equipment and accessories manufacturers, distributors, equipment

rental firms, and service companies working for the construction and materials industries.

From the construction sector, in 2009 (33% of whom were international, representing 162 countries) visitors totalled 184,519.

Visitors to the show will include: contracting authorities, construction and civil engineering companies, design offices, architectural firms, surveyors, equipment rental and distribution firms, lifting and hoisting equipment specialists, traders in construction materials, mine and quarry operators, financial organisations and service companies.

“PUBlIC WORKS AND INSTITUTIONAl BUIlDING ARE EXPECTED TO STAGNATE. CONSTRUCTION OF BUSINESS AND INDUSTRIAl PREMISES IS lIKEly TO BE AFFECTED By ECONOMIC UNCERTAINTIES.” business and industrial premises is likely to be affected by economic uncertainties.”

In the United States, the report continues, falling prices combined with rising costs have weakened the entire sector.

“Investment in construction fell by 2% in the first 11 months of 2011. Although the decline affects most subsectors, the new building segment has been especially weakened. Non-residential construction also continues to suffer due to budget difficulties of the States and Cities.

“In Canada, the recovery that began in early 2010 explains the low level of payment incidents recorded

by Coface. A sharp slowdown is nevertheless expected in the housing segment in 2012 following the introduction of more stringent credit access conditions.”

Major releases With yet another wave of emission regulations incoming and the industry in a haste to adapt to a radically different commercial environment it is unsurprising that many of the launches once again reflect a tightening in spending and a need to boost productivity and efficiency.

At a time when Chinese manufacturers obsess of being bigger, North America and European minds are focussing on more bang for your buck or indeed Euro.

Volvo has in the past chosen the event to set its benchmarks for the next three years. While there are no great surprises in store this time around, Volvo

36

CONSTRUCTION

MIDDLE EAST

March 2012

stand will showcase 12 new machines for 2012, including the ECR145D and ECR235D reduced radius excavators, the new EW range of wheeled excavators and the heavy duty EC380/480D excavators, as well as new wheel loaders and road machinery products.

Volvo will also highlight its advanced engineering solutions, mobile high-tech diagnostics that allow customers to accurately calculate their costs, and Volvo Financial Services offerings. The Volvo Eco Operator programme will be on display, as well, demonstrating a safer and more environmentally sensitive way of training operators.

Fellow Swedish company Sandvik Construction will also be demonstrating the latest developments from its product range, but is choosing to push its own commitment to customers and their specific business requirements.

According to Satu Ramo, marketing communications manager for Sandvik Construction: “The Sandvik Construction range of equipment enables our customers to process materials from virgin rock right through to demolition materials that can then be recycled for continued use.

“This customer-focused approach will see us unveil some new and exciting products and services for the quarrying, demolition, road building, civil engineering, recycling, aggregates and tunneling industries.”

While the complete range to be shown has not yet been revealed it is understood that Sandvik will have its QI 240 mobile impactor, BR 3288 breaker, DP 1500i drill rig, rock tools and screening media on display.

Italian company CIFA, which has been acquired by XCMG since the last Intermat in 2009, will introduce a new pump that it says has been tailored to the needs of the French market.

The new MK-24 concrete pump has a detachable pumping system with rotor. It is equipped with a three-section distribution boom with a Z-fold

The Manitowoc family of cranes The Manitowoc family of cranes

Premium lifting solutions and dedicated Premium customer lifting support solutions and dedicated Manitowoc offers a full range of tough, reliable, customer support high-capacity cranes to meet the lifting industry’s rigorous demands. All of our cranes — backed Manitowoc offers a full range of tough, reliable,

by Manitowoc Crane Care — are designed for high-capacity cranes to meet the lifting industry’s quality and performance, ensuring the highest rigorous demands. All of our cranes — backed value for your money.

by Manitowoc Crane Care — are designed for quality and performance, ensuring the highest value for your money.

Contact your dealer or visit www.manitowoc.com

Special Report

system and 100mm pipes. As the pumping unit is detachable, the rotor can be unhooked to increase the concrete load in the drum. This has been developed to suit the needs of stomers wanting to use a peristaltic pump rather than a traditional piston pump during pumping phases.

In addition, the concrete pump with rotor has been designed for ease and speed of cleaning and to prevent excessive waste of material. CIFA claim that the MK-24 with rotor, which can be mounted on a four-axle chassis, is also easy to position and so is suited to working on cramped sites such as restoration projects in city centres.

Among the JCB machines on show will be the 550-80 Loadall. The 550-80 is JCB’s highest capacity Loadall and it has been specifically designed for bulk handling operations in heavier duty applications such as loading duties with a bucket and materials recycling and waste handling operations. Key features of the 550-80 include an 8.1m lift height with a 4.99tonne lift capacity, a 97kW engine and 140 litres/min variable flow hydraulics and highflow pipework for optimised cycle times.

With loading operations in mind, the 550-80 features high dump and roll-back angles of 46° and 34° respectively. This is designed with material retention and stockpiling in mind for efficient lorry or hopper loading. The model is also available in a Wastemaster specification. The inner boom of the 550-80WM uses a splayed nose design to maximise structural integrity while also incorporating Z-bar bucket linkage. This system provides 6.5tonnes of breakout force – an increase of more than 50% on the current 541 Wastemaster. The low boom line has been designed to aid all-round visibility.

Turkish company Hidromek will be unveiling its HMK220LC crawler excavator narrow chassis.

Weighing up to 37t, the machine comes with a twopiece boom and is part of the newGen Series Range.

Featuring a state-of-the-art control panel, the 220LC provides versatility, reliability, very low fuel consumption, easy maintenance and operator comfort due to its spacious cabin. The machine’s

38

CONSTRUCTION

MIDDLE EAST

March 2012

“THIS FRAGILE And vARIABLE ECOnOMIC CLIMATE,

COMBInEd WITH CHAnGES In ORdERS FROM THE PuBLIC SECTOR And FLuCTuATIOnS In BOTH COSTS OF MATERIALS And dEMAnd, ExPLAIn THE InCREASE In PAyMEnT InCIdEnTS.”

four-cylinder Isuzu engine produces a maximum power of 120.8kW. The 220LC also has a boom reach of 5.8m and a standard model bucket capacity of 1m³. Operating weight on the standard crawler excavator is 22.3kg, and 22kg on the 220LC narrow chassis machine.

The Terex MC1000 cone crusher is the first of a new modular product line. This consists of several pre-designed static and semi-static crushing and screening ‘plug and play’ modules. Key features include: the Terex 1000mm cone chamber, which handles feed material to enable attrition crushing; a roller bearing design that improves crushing efficiency; a hydraulically adjustable closed side setting; and a weather protected, robust, user friendly control panel.

Each module arrives in large containerised prewired sections that bolt together with basic tools allowing for fast and easy setup. The modular product line will allow customers to create a custom plant that provides the productivity they want to suit any particular application across the aggregates and mining sector.

Jason Talbot, Terex MPS global product line director, said: “The new Terex MPS Modular Product Line represents a move away from traditional machinery production methods. It is designed in response to demand from the materials processing market, not just in France or Europe but globally. We look forward to meeting with customers and discussing the features and benefits of all our products at the 2012 Intermat exhibition.”

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

concrete@saudidiesel.com.sa

Product Focus

Raw power EvErything you nEEd to know.

page 44 NEW RELEASES

The build up to Intermat and the Construction Machinery Show in Jeddah continues with a whole raft of new machines, plant and commercial vehicles.

page 52

page 54

DEFENCE SPENDING

The Middle East is becoming an increasingly important player and developer of machinery and vehicles in the military sector.

WHEEL LOADERS

Learn how to take care of your precious heavyweight, the wheel loader, in Construction Machinery Middle East’s guide.

page 56 SCOUTING

UAE readers can get to see Renault’s Sherpa this month. CMME looks at the history of vehicles that cross the commercial divide.

page 49 GENERATORS

A special review of new generators coming out in the market and a look at how manufacturers are concentrating on long-term value.

March 2012

CONSTRUCTION

MIDDLE EAST

41

Product Focus ryMCo signs up for renault

Lebanese dealer Rasamny-Younis Motor Company (Rymco) has signed a partnership agreement with Renault Trucks announcing them as exclusive distributor of Renault Trucks in the country. The agreement is part of Rymco’s strategy to expand its brand portfolio, especially in the heavy duty vehicles, a new sector that is still restraint in the Lebanese Market. It also marks a new stage in the manufacturer’s presence in Lebanon enabling Renault Trucks to play a key role in the country.

Oil fiElD OpERatOR REnault KERax MaKEs Dubai DEbut

R

enault’s Kerax 6x6 truck will be available for visitors to get up close and personal at this month’s Commercial Vehicles Middle East event in Dubai.

The truck has been busy earning its chips in the region, especially in North Africa where it has been used in both Tunisia and in Algeria as a hardy tool for companies engaged in oil exploration.

The versatile vehicle has also been in service in Morocco, Turkey and Jordan for fire truck applications.

It has proven popular in the military sector where the rigid and tractor trucks,based on commercial vehicles, are adapted to the specific needs of armed forces. They are ideally suited for logistic missions and benefit from the low lifecycle costs of commercial vehicles. The Kerax is also able to be modified at a larger extent for tactical missions with improved off-road mobility and tactical air transport capacities.

It s principle application remains transportation and construction and aRenault Kerax 6x6 equipped with an Allison 4000 Series transmission in France was recently delivered to Dhennin Company in a role that would make it ideal in the Middle East.

Renault Trucks offers the fully automatic transmission as an option in the Kerax range for customers and vocations demanding durability, comfort and performance.

The trucks often operate at construction sites with intractable entries and challenging offroad terrain. The Kerax 6x6 operated by Dhennin features a crane used to transport materials and tear down or plant concrete electricity pylons in the construction and maintenance of new transportation infrastructure.

Designed to perform under harsh operating conditions, the Renault Kerax is more rugged

42

CONSTRUCTION

MIDDLE EAST

March 2012

and robust with an Allison transmission. Allison’s torque converter technology improves vehicle performance on extreme grades by multiplying the engine torque and continuously transferring it to the driving wheels.

Modern electronics controls enable the transmission to adapt automatically to various conditions, including drive style, load, gradient and on-/off-road surfaces. This ensures the vehicle operates at its best, regardless of location.

George Rabette, director of the Dhennin Company, was convinced of the Allison fully automatic transmission’s value after attending a construction demo event. He explained, “The distinct advantage of the Allison automatic transmission on the Renault Kerax is to provide drivers with a real level of comfort.

This allows them to concentrate on steering the vehicle instead of manipulating the clutch pedal in order to negotiate the terrain. It is a 2-in-1 vehicle, ideal both for on- and off-road use.”

Allison’s expanded presence in global construction reflects the industry’s demand for vehicles that reduce downtime, enhance fuel efficiency and improve profit margins. Trucks fitted with Allison automatics make faster trips, require less maintenance and repair, and achieve higher overall efficiency.

“OEM customers like Renault are increasingly aware that automatic transmissions offer the kind of performance and financial benefits their customers are looking for,” says Manlio Alvaro, Allison’s European marketing manager.

“Collaboration with Renault in the Kerax range demonstrates the need for performance transmissions that can cope with diverse ground conditions – delivering reliability, durability and ease of use to fleets across the globe.”

XCMg building a 3,600 Monster Why get it?

Massive projects just got easier Built for infrastructure BooM

Chinese manufacturer XCMg is tripling its highest capacity crawler crane with its new 88,000t/ metre maximum load moment XgC88000. given the previous machine was capable of 28,000t (the 2000t XgC28000 lattice boom crawler crane), it’s a major leap in grunt. the 3,600t-plus capacity crane has a good chance of being successful in the Middle east as it is made for petrochemical, coal, chemical and nuclear power construction. the new monster model follows the 1,000t and 2,000t capacity models

previously launched. the 2000t model only made its debut two years ago at bauma China. that machine entered into service in June last year. the XgC88000 was jointly developed with Chinese oil company sinopec (China petroleum & Chemical Corporation) following an agreement signed in 2010. in october 2011 it featured in China’s Ministry of science and technolog’s state high-tech development plan, also known as the 863 programme. the scheme is designed to stimulate domestic product development and reduce reliance on foreign technology. the crane will be muscling in on a crowded market place in China, joining two machines that were released last year: sany’s sCC86000tM and Zoomlion’s own ZCC3200np, which has an 82,000t/metre maximum load moment.

speCifiCations • arm length: 216m • load capcity: 3,600t • torque metres: 88,000t/m • uses: Energy and infrastructure sectors

DoosAn ADt Why get it?

Huge jumP iN torque great fuel saviNgs

specificAtions • Body volume: 24.4m³ • gross weight (heaped): 70,700kg • net weight: 30,700kg • payload: 40,000 kg • load over height: 3.35m • length: 10.59m • Width: 3.48m • height: 3.82m • turning radius (iso 7457): 8.42m • travel speeds:

Forward - 58 km/h / Reverse - 15 km/h • gross torque: 2373 Nm at 1300 rpm • engine: 6-cylinder Scania DC13 Tier 2 diesel engine, 368 kW at 2100 rpm • transmission: ZF EP420 8F-4R with hydraulic retarder and front mounted differential

Powered by the 6-cylinder Scania DC13 Tier 2 diesel engine with a gross power output of 368 kW (500 HP) at 2100 rpm, the new DA40 offers a 10% increase in engine power compared to the previous MT41 model. With a 22% increase in gross torque to 2373 Nm (1750 lb ft) at 1300 rpm, the torque available in the DA40 is ‘best in class’ in the ADT market.

Contributing to the overall 8% reduction in fuel consumption* is the new ZF transmission offering 8 forward and 4 reverse speeds. The new transmission improves the transfer of power from the engine to the wheels for outstanding traction. To

withstand the increased power, the driveline dimensions and cooling capacity of the truck have been increased.

The DA40 combines ‘bestin-class’ fuel consumption with a higher top speed of 58 km/h (36 mph). The DA40 also has an increased body capacity of 24.4 m³, and the payload has been boosted to 40 metric tonne without tailgate, an increase of more than 15% over the payload of the MT41. The higher speeds and payloads will allow the customer to increase profits from their mining, quarrying or earthmoving operations.

Building on the success of the popular MT31 model which it replaces, the new Doosan DA30 articulated dump truck (ADT), which has a payload of 28 metric tonne, offers many new features to meet customer demands for increased power and performance, easier operation,

Also lAunching

Big cAt coMpActs

neW DX225lcA crAWler eXcAvAtor

Why get theM? solid PerformaNce stage iiib eNgiNe

the new cat 272D skid-steer loader and 299D compact track loader, which are replacing their c-series predecessors, are now joined by a pair of high-performance counterparts, the 272D Xhp and 299D Xhp, which are the largest, most powerful skid-steer and compact track loaders caterpillar has ever

built. the new D-series models build on the premium features, solid performance, quality and durability of the c series by adding a more powerful engine, the cat c3.8, which meets stage iiiB and tier 4 interim emissions standards, and by including design features that further enhance lifting, digging and work-tool performance. the electronically controlled cat c3.8 engine is equipped with the cat nox reduction system and a particulate filter.

specificAtions (c272D): • engine Model: Cat C3.8 (turbocharged) • gross power: SAE J1995 98hp • operating Weight: 3.812t • travel speed: (Forward or Reverse) One Speed 10.6 km/h 6.6 mph/Two Speed Option 15.1 km/h 9.4 mph rated operating capacity: 1.451t • tipping load: 2.903t • Breakout force, tilt cylinder: 3.359t

increased fuel efficiency, enhanced driver comfort and faster travel speeds.

Driven by the 5-cylinder Scania DC9 Tier 2 diesel engine with a gross power output of 276 kW (375 HP), the DA30 offers an 8% increase in engine power compared to the MT31. In combination with the greater engine power, the DA30 also has 30% more gross torque (1873 Nm at 1300 rpm), to produce the powerful rim pull required to work in extreme hauling conditions.

The exceptionally flexible and agile undercarriages on the DA40 and DA30, which are designed to ensure that all 6 wheels are in permanent contact with the ground, mean that Doosan trucks can operate on very rough and soft terrain on construction sites such as road projects and mass excavation hauling as well as in mining and quarrying applications.

Why get it?

Next geN cab features Power Plus efficieNcy

specificAtions • Buckets: 0.39-1.28m3 • operating weight: 21.5t-23.2t • Digging depth (std front): 6620mm • Digging reach (std front): 9900mm • Digging height (std front): 9750mm • tail swing radius: 2750mm • Drawbar pull: 22.2t • Digging force over bucket (iso): 15.2t • Digging force over arm (iso): 12.6t • lifting capacity at ground level (over front): 7.8t at 6m

The operating weight of the new DX225LCA excavator varies from 21.5t to 23.2t, depending on the configuration.

The new model offers a maximum bucket capacity from 0.39m3 to 1.28 m3, a digging depth of 6620mm, a reach of 9900 mm and a digging height of 9750mm.

The DX225LCA is equipped with an air to air intercooler 6-cylinder Doosan DB58TIS Tier 2 compliant engine, developing 110 kW (148 HP) of power at 1900rpm (SAE J1349). The DX225LCA also provides impressive bucket and dipper stick breakout forces of 15.2t and 12.6t, respectively.

Selected via the new LCD colour display panel in the cab, there are three operating modes for the new DX225LCA excavator: Power, Standard and the Economy mode, offering a significant reduction in fuel consumption.

In combination with these work modes (P/S/E), the new EPOS controller ensures a smooth interface and adjustment between the engine and hydraulic output that optimises productivity and significantly reduces fuel consumption by 5%15% depending upon the mode selected.

Elsewhere in the cab, the space for the operator has been significantly increased, while the comfort, seat and joystick controls have all been improved.

March 2012

CONSTRUCTION

MIDDLE EAST

43

Product Focus

Hi-TeCH SofTwAre

New VAR iN egypt

M

eridian Systems is introducing a new Value Added Reseller (VAR) agreement with Zone Technology.

Concentrating on building and infrastructure programme owners and managers in Egypt, Zone will provide comprehensive software sales and professional services for Meridian’s Proliance® solution to enhance the productivity, cost control and scheduling of local projects.

“Zone is well positioned with program management providers and consultants, multinational firms focused on the oil sector, developers in Egypt’s tourism and real estate sector, and with public sector clients” Zone is well positioned with program management providers and consultants, multinational firms focused on the oil sector, developers

in Egypt’s tourism and real estate sector, and with public sector clients,” said Geene Alhady, general manager, Meridian Systems. “This makes them a great addition to our internationalbased VAR network as they work with clients in Egypt to deliver a suite of engineering and survey solutions along with Meridian’s Proliance solution.”

“Egypt is in need of top notch software solutions to further enable our engineering community to manage their projects using best practices,” said Ahmed Kandil, MS, PE, PMP, Zone Technology. “We are particularly excited to introduce our current client base, which includes construction consultants and oil and gas customers in the area, to solutions that can effectively automate their business practices and save time and effort.”

JCB 1CX Big uPgrAde for SMALL JCB MACHine wHy geT iT? Major upgrade to chassis pMs adds to perforMance JCB has upgraded its 1CX product – the smallest member of its world-leading backhoe loader family – with a new appearance, longer loader arms, an extending dipper option, servo controls and a power management system.

The 1CX has been updated with the latest JCB corporate styling, including a revised cab roof trim, improved working lights and sturdy electrical switchgear.

The new optional loader arms are 4 inches longer to provide easier loading of site dump trucks.

At the rear, an extending dipper option adds up to 20 inches to the digging envelope, taking maximum dig depth to 10 feet. This allows easier load over of trucks, with the backhoe easily able

to reach the center of the dump truck. A new Power Management System (PMS) adds performance, lowering engine lug down as the machine digs and increasing power when driving into a pile with the front bucket.

SPeCifiCATionS • engine power: 50hp (37kW) • operating weight: 2,849kg to 2,948kg depending on cab/canopy. Extending dipper and longer loader arm adds an additional 154kg • Maximum load height (front): 2.54m • Maximum dig depth (rear with optional extending dipper): 3m • Maximum loader lift capacity: 600kg • Loader breakout force: 5,193 lbf • Backhoe dipper breakout force: 3,485 lbf • Backhoe bucket breakout force: 5,148 lbf

Hi-TeCH SofTwAre

LoJAck huNtiNg equipMeNt

L

oJack Corporation, the company that claims it invented the Stolen Vehicle Recovery category, has introduced its next generation, ruggedised Stolen Vehicle Recovery System for construction equipment and commercial vehicles.

This self-powered, Radio Frequency-based System is based on a proprietary power management protocol, which enables a battery life that can be warranted up to seven years, far surpassing the 30-day battery life of even the most sophisticated GPS solutions.

The next generation construction equipment and commercial vehicle recovery system is entirely selfcontained (no wires) and does not require constant charging to any power source.

This not only streamlines the installation process, but also enables the system to be installed on

44

CONSTRUCTION

MIDDLE EAST

March 2012

a greater array of equipment--especially those that do not have a power source such as electric forklifts, solar-powered assets and equipment using alternative fuels.

Because the battery is self-contained, the LoJack System can now be hidden in additional locations on a piece of equipment, making it that much more covert--and even more effective for tracking and recovering stolen construction equipment.

Select manufacturers are now installing it directly on their equipment and camouflaging it to match the exact colour of the machine. The LoJack system for construction equipment and commercial vehicles utilizes a small wireless Radio Frequency transceiver – now self-powered – that is hidden in a piece of equipment in one of many

possible locations. LoJack donates Police Tracking Computers (PTCs) that are installed in police cars, helicopters and fixed-wing aircraft used by participating law enforcement agencies. Once equipment is reported stolen to the police, the product identification number is matched to the LoJack System’s registration number by state law enforcement computers.

After the match, the LoJack System is automatically activated by police, which causes the small, hidden transceiver in the equipment to emit a silent signal. Law enforcement vehicles and aircraft equipped with LoJack PTCs follow these signals, which lead to the precise location of the stolen asset, even underground garages, barns and deeply wooded areas.

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

Sector Analysis

Generation-Xtra

Powered by the rental sector the generator sector has found its niche plugging in the gaps of the region’s energy needs.

K

eeping up with the Genset has become increasingly difficult in the Middle East with the sector experiencing a burst of energy driven by the construction industry and the region’s inability to plug the gaps in its electricity grids. If that sounds like a mouthful just you wait to you see the number of options that are now available through distributors and rental houses.

The recent Middle East Power and Electricity event saw a number of high profile companies either entering the market or stepping up their presence.

Looking to bunny hop on the event, Navistar, the US truck maker and genset manufacturer, launched its International MaxxForce engines into the Middle East.

The truck and diesel engine manufacturer’s roots go back 180 years (40 years in Gensets) and while it is ranked 204 in the US’ fortune 500 companies it has been previously happy to keep a relatively low profile in the market.

However it wants to expand its operation across the Middle East.

The MaxxForce line of fuel-efficient, reliabile and durable engines includes a wide range of gen-set models that offer 3, 4, and 6 cylinder diesels rated from 31 kVA up to 220 kVA standby power at 50 Hz. and from 40 kVA up to 260 kVA at 60 Hz. Some dedicated Cummins users have noted that the engines do not compare favourably with the similarly powered Cummins

B engines (MaxxForce is larger and has a different wet sleeve design), and different emissions control systems) in terms of future maintenance costs, but on paper the twin turbo unit looks suited to the region.

“We are committed to the Middle East market and we are confident in our growth opportunities in the region,” said Dave LaPalomento, general manager of Navistar Global Engine. “We are making investments in the people, products and communities in which we operate because we see the Middle East region as a strategic growth area for Navistar for the long-term.”

With MaxxForce warmly received, the company has been rolling it out in North America, South America, Asia, and distribution points worldwide.

“Navistar Engine Group has the capability to provide the most strategic and innovative technology solutions to customers, no matter where they are,” said LaPalomento. “Our manufacturing expertise is renowned worldwide. We build MaxxForce brand engines serving a vast array of customers for on and off-highway applications across the globe.”

He added: “Backup power needs of business, developing countries and communities confronted with natural disasters require reliability and capability. That is what MaxxForce engines provide for the stationary power industry. We refuse to sit still in our pursuit of the ultimate power source for stationary power manufacturers. MaxxForce engines and the application engineers behind those products will generate a new experience for you and your customers.”

March 2012

CONSTRUCTION

MIDDLE EAST

47

Sector Analysis

GEnSEtS at a GlancE What is a gen-set and how does it differ to the industrial engine on which most are based? The following list sets out to explain many of the basic terms applicable to gen-set design, development and ownership.

• ElectropaK: A fixed speed diesel engine with ratings to suit a gen-set application.

Comes complete with radiator, cooling group and fan.

• Electrounit: An ElectropaK without radiator, cooling group and fan. Suitable for individually installed Combined Heat & Power setups.

• IOPU: Industrial Open Power Unit.

These are multi speed non vehicle power units. They are normally sold with radiator, cooling group and fan, and typically share ratings from their off highway derivatives.

Typical applications include pumps and compressors.

• Operating Speed: Gen-sets are normally governed to fixed speed running. 1500

48

CONSTRUCTION

MIDDLE EAST

March 2012

rpm to produce 50Hz electrical supply for European market and 1800 rpm to produce 60 Hz for US market.

60Hz supply can be achieved at 1200Hz with some alternator sets- this is uncommon.

• kWe: Kilowatts electrical is a measure of electrical power produced by a gen-set. 60Hz generator sets are usually marketed in terms of kWe. • kVa: Kilovolt amps is a measure of electrical power produced by a genset.

50Hz gen-sets are usually marketed in terms of kVa. As gensets produce an alternating current P=VI doesn’t hold true. Voltage and current follow sinusoidal wave forms with a phase shift due to the reactance (generated by inductance & capacitance) of the load on the alternator, and hence a power factor is used.

Industry assumes a 100% resistive load for which a 0.8 power factor is used.

captions here in CMME style

“INEVITAbLy gENErATOrS ArE buMPED AND

SCrATCHED TO VArIOuS LEVELS THAT MAKE THE MACHINE LOOK OLD AND uNATTrACTIVE.”

While Navistar’s story in the Middle East is only beginning to take shape, Atlas Copco has been heavily involved for 40 years and selling gensets for 25 years. It has chosen to focus on durability and ruggedness with its ultra tough HardHat design QAX range of portable generators.

With a canopy constructed of linear medium density polyethelene (LMDP), the QAX30 30kVA portable generator is designed to withstand the harshest of conditions and treatment.

“Inevitably generators are bumped and scratched to various levels that make the machine look old and unattractive,” said, regional business line manager, Atlas Copco Middle East, Michael Sagermann.

Atlas Copco is lauding the QAX20 for its durability and it claims it has boosted the lifespan adding years to its expected usefulness in comparison with average portable generators. The benefit, it says, means units will hold their original price tag for resale versus conventional steel.

Sagermann added that the ultra durable HardHat design increases the life and resale value of the portable generator, at the same time saving users on operational costs.

“Inevitably generators are bumped and scratched to various levels that make the machine look old and unattractive,” said Sagermann, who added that the lifespan of the QAX20 lasts years longer than normal portable generators, while holding an increased amount of its original price tag for resale versus conventional steel.

“The LMDP is structurally strong, does not scratch or dent thereby keeping it looking very new and upon reaching the point of time for replacement increases its resale value on the second hand market.”

In addition to the QAX30, Atlas Copco also showcased the QLTH40 lighting tower and the QAC1000 containerised generator for the first time at Middle East Electricity.

“We have been producing generators for 25 years, and many customers from our successful compressor business were not aware we could offer generators and lighting sets as well,” commented Sagermann.

Meanwhile, Perkins is launching a brand new range of diesel engines for the electric power market, filling the gap between the company’s current 1300 and 2000 Series ranges.

The family comprises a range of full authority electronic control, turbocharged, air-to-air chargecooled engines that have been developed to provide prime and standby power in a clean and costeffective fashion with special emphasis placed on improved power density, reliability and robustness.

The six cylinder1600 Series ElectropaK, 9.3 litre range offers outputs up to 300kVA (240 kWe) prime power and 330 kVA (264 kWe) standby power at 1500 rpm - both key nodes - though the intention is to release a 350kVA (280kWe) standby version later in the year.

Engines with ElectropaK specification are supplied fully fitted with suitable radiators, charge coolers, air cleaners, pipes, hoses and mounting feet so providing a fully engineered turnkey package that can be integrated directly with generating sets.

For OEMs and genset packagers the key benefits include the combination of higher power density and load acceptance, which effectively means that the 1600 Series can achieve outputs normally associated with much bigger displacement engines, while offering a space saving opportunity during installation.

The tropical radiator, which is fitted as standard, ensures that there is high ambient clearance at even the highest temperatures, making it suitable for applications such as supersound canopies.

With little or no derate the unit can produce its maximum output virtually anywhere in the world. Its global acceptability has also been enhanced through the simultaneous launch of versions for both nonregulated and EU IIIa territories. This versatility has been further increased with the inclusion of switchable models which both reduces parts inventory and supports the needs of the rental market.

Built for durable and economic use, its operating and maintenance costs are reduced thanks to its frugal consumption of fuel - around 200g/kWhr while whole life costs are enhanced by the 500 hours service intervals and Perkins standard warranty.

The drop in capital expenditure seen in the construction equipment supply presented an opportunity for those willing and able to push products through rental. Consequently establish players in the rental field such as Byrne, Nixon and Aggreko have all the made moves to grab share, but the OEMs themselves have also seen a boost to their performance in the channel. The market is now moving on, with local power companies looking to expand their partnerships into new territories.

Abu Dhabi-based private equity firm Gulf Capital recently bought an 82.7% stake in UAE generation company Sakr Energy Solutions FZCO with the intention to take its range of Lister Petter, Cummins,

Doosan toughens its tops Doosan Portable Power is launching new versions of its popular 7/26E and 7/31E portable compressors, equipped with the ‘Tough Top’ polymer canopy at Intermat. As well as offering durability, the Tough Top canopy is also non-corrodible and can be supplied in customer colours (rentals please note). The new

compressors complement the 7/41+ Tough Top model launched in 2010.

The new 7/26E+ model supplies 2.5 m3/min of compressed air at 7 bar output pressure and is powered by a 3-cylinder Yanmar liquid-cooled engine producing 21.2 kW of power at 2800 rpm.

Powered by a 3-cylinder 26.0 kW

Mitsubishi, MBH and GE kits into Africa and the nearEast. Sakr Energy’s history is a short one forming when its current management split from the assets of GE Energy Rentals.

“This is a young and growing company in a fastgrowing sector”Gulf Capital’s CEO Dr Karim El Solh proclaimed.

Sakr Energy operates not only in the United Arab Emirates, but also Saudi Arabia, Qatar, Yemen, Oman and Tanzania. Along with the rental equipment business it also provides turnkey power generation solutions. Gulf Capital will now look to raise between $30-50 million from loans to expand in other countries in Africa and Southeast Asia.The global deficit in power generation increased to 150,000MW in 2010 from 50,000MW in 2004 and is expected to rise to 600,000MW by 2015, according to the Gulf Capital statement.

Yanmar engine running at 2800 rpm, the new 7/31E+ compressor supplies 3.0 m3/min of compressed air at 7 bar output pressure. The 7/26E+ and 7/31E+ compressors combine durability with aesthetic design, making them an attractive investment for everyday applications in the toughest working conditions.

Point of View

Wheel loaders are the workhorses of construction sites but how can you best look after your prized heavy-weight?

Keeping it wheel I

deally an operator of a wheel loader will not wait for scheduled check-ups and do preventative maintenance on their machines every day of operation. However in a world where time is one of your biggest costs, is it possible to keep that dust and dirt under control while finding the extra time to keep tires, fluid levels and grease in tip top condition?

Well, unfortunately, the region’s poor maintenance and break down record suggests that not enough people are spending those extra few minutes that would save money and time later on down the line. The net result, inevitably, is that not enough is being done.

The good news is that OEMs and distributors are able to send on information on recommended maintenance practices particularly as it is paramount to the well being of the product. Extensive testing is performed

50

CONSTRUCTION

MIDDLE EAST

March 2012

on various components to determine maintenance intervals and filter requirements, and that data is also readily available.

Thankfully for wheel loaders it is straightforward to set up a simple daily maintenance routine and be implemented. Ideally, the routine should be performed by the operator at the start of the day.

The first place to start is a check of the fluid levels of the hydraulic oil, engine oil and fuel. It should then end with a walk-around of the machine.

Obviously not all machines are designed the same way but they will certain tasks can be completed and implemented in the same way. So consult the operator’s manual for a machine’s own specifications, even if the differences may on sight seem negligible.

The owner’s manual should be the plant manager’s or operator’s best friend. Encourage anyone with responsibility to look at it, as it is such a useful source of information. If you don’t consult the manual, you can miss out on changes that have been

Cat 966G -the super mini The 1:14 scale Caterpillar 966G Series II Wheel Loader is a miniature version of a real machine.

Constructed primarily of aluminum components and plastic trim parts the wheel loader is a spectacular achievement in miniature. Operating as the real machine does with a hydraulic system capable of 174 psi, it has the power to dig dirt and load trucks.

The drive system is a 6,000 rpm high torque 12V electric motor coupled to an all-metal 3-speed transmission and in turn coupled to two metal differentials at a 15:1 reduction ratio. Transmission and rear ends operate on a full set of ball bearings.

All kit components are supplied with the durable baked on powder coat finish. No painting necessary

Manufacturers may be boasting about the comfort of operators, but decent uptimes are still the prime concerns for fleet and plant managers.

made to the maintenance schedule since the last time you purchased a new machine.

Much like car manufacturers post tyre pressure information on doors, major OEMs tend to place stickers onto the cabin, chassis or parts to highlight the service interval information.

Machines are constantly being updated so it is worthwhile ensuring that even with a new machine that looks like a minor upgrade, that operators revise or advised about changes. Take engines for example, moving from Tier II to Tier III units on wheel loaders saw changes to fluid requirements, and typically saw manufacturers increasing fluid change intervals. Missing out on these changes could also mean missing out on savings, especially as the fluids don’t have to be as changed as frequently.

Of course there are other scenarios that could mean that operators are missing vital information critical to the machine’s safe operation. Intervals are designed to provide the most productive and

“MAchInEs ArE cOnsTAnTly BEInG UpdATEd sO IT Is wOrThwhIlE EnsUrInG ThAT EvEn wITh A nEw MAchInE OpErATOrs rEvIsE chAnGEs.”

efficient longevity of the machine – and they could prevent major breakdowns.

This is especially pertinent in the Middle East where dust and sand environments can infiltrate filters and stop air and oil flowing unimpeded in the machine.

Ideally you want your filters to be clear of any clogs and dirt to ensure the best performance from the engine. As clean filter reduces fuel consumption, manufacturers are introducing reversible fans that will clean debris from coolers and stop overheating, even in the most extreme of conditions.

Engines may be fitted with bypass valves that ensure fluids reach those hard to reach spots despite clogged filters but if you’re not following a proper maintenance schedule you’ll be spreading gritty fluid over critical parts. Ultimately this will lead to component and possibly engine failure through wear and tear.

Going beyond the recommended interval schedules will prevent your big expensive fourwheeler being able to do its job properly. It is easy to get complacent about oil levels particularly when the first time you become aware of a problem will be a warning light. By the time it has got that far then you have lost any of those critical savings you were after. Fluids have special additives that can break down and lose protective qualities in certain conditions. Always stay inside the manufacturer’s suggestions of hours for oil changes.

March 2012

CONSTRUCTION

MIDDLE EAST

51

Product Focus

“OPErATIng WhEEL LOAdErs In ExTrEMELy hArsh EnvIrOnMEnTs MEAns yOU WILL nEEd TO AdjUsT ThE MAInTEnAncE schEdULE.”

Most OEMs will recommend lubricants that can be sourced from the local dealers. While you may have a preferred dealer that may not supply the brand on the list, check that your not endangering your warranty on the machine. If something goes wrong through component damage that is attributable to the oil you have been using then you run the risk of having to take on the costs of major repairs even on low hour machines.

Operating wheel loaders in extremely harsh environments, or in multiple shifts, means you will need to adjust the maintenance schedule. Take

52

CONSTRUCTION

MIDDLE EAST

March 2012

advice from your dealer, or if you’re buying a used machine directly from another operator, on how these adjustments should be made.

Wheel loaders are frequently deployed on heavy construction jobs, demolition and waste treatment and all of which are liable to shorten a loader’s life in operation if proper maintenance is not performed.

Always ensure the machine matches the operation and weight of material being handled.

Also take into account conditions and the types of loads to ensure that the machine is operated according to the task in hand. Furthermore operators should avoid the temptation to minimise the amount of changes in attachments and should always have the right tools for the job. When possible different buckets should be used for debris, sand and stone.

Likewise tyre pressure should be adjusted to suit the environment and checked constantly to ensure efficient and safe operation.

For instance if one tyre’s pressure is lower than another, a bucket or ground-engaging tool won’t be level. If you are low on one side you are also putting more torque on one side, straining the machines moving parts and brakes.

Taking care of your wheel loader will add longevity and should it be a consideration, value when it comes time to trade it in or sell it. Proper maintenance can add 15% to 20% to the value of the machine at trade-in.

Ultimately the best way for operation to be successful is to let operators feel respect for their machinery. Make sure they take care of handling the machine. The rule of thumb for wheel loaders is to come to a complete stop before shifting gears.

Always remember, operators are the biggest threat to the machine and they can damage wheels, axles and transmissions.

DX225LCA

SEE US AT

INTERMAT HALL 6 STAND 6-G079

Doosan. The closer you look, the better we get.

COUNTRY

DEALER

PHONE

BAHRAIN

SAYED KHADEM AL-DURAZI

+973 17 250 871

EGYPT

OTRAC

+20226977799

IRAQ

TRISTAR CO.

+964 750 466 1301

JORDAN

FARRADJ & CO.

+962 6 464 3900

KUWAIT

BAHRAH TRADING

+965 1802 008

OMAN

AL-HASHAR

+968 2459 6434

PAKISTAN

RIKANS INTERNATIONAL

+92 42 666 0444

QATAR

QATAR NAVIGATION

+974 451 6269

SAUDI

SAUDI DIESEL EQUIP. CO.

+966 3 857 6769

SYRIA

TEMCO

+963 11 331 6151

UNITED ARAB EMIRATES

BIN BROOK MOTORS & EQUIPMENT

+971 2 558 4888

YEMEN

JUMMAN TRADING & INVEST.

+967 127 2232

www.doosanequipment.eu

Military Tech

Operation: Construction How the Middle East is becoming a hub for an army of military construction kit.

T

he latest results meeting for UK military specialist BAE Systems was full of doom and gloom about its current predicament. Europe’s biggest defence contractor forecast flat sales this year after reporting a 7% fall in profits in 2011.

“It’s a difficult market as defence spending reduces in our largest markets, the US and UK,” CEO Ian King told reporters, adding that: “little sales growth can be expected for the group in 2012.”

According to King, the company has been hit by continued cuts to military spending by the United States and the home UK market. However some of its losses in its two main markets are being offset by stronger sales elswwhere.

The company has a long-standing relationship with the Middle East and Saudi Arabia – its third largest market – in particular. The company is targeting growth in the Gulf and South America to offset the possibility of a continued slump in its main markets.

“Interest in Typhoon remains high and we have good prospects on deals with Oman, Malaysia, Qatar and the UAE as well as the Brazilian navy,” added King.

While fighter jets may seem a long way from the business of construction but King’s organisation is riding a wave of defence spending in the region. Jets need infrastructure, runways, aerodromes, armies need barracks and offices.

Furthermore the line between companies in both the military and industrial sectors is looking increasingly blurred. Politicians have done this for decades – when South Korean’s President Lee met with King Abdullah in Saudi recently a deal over

military technology were mixed with a deal for the construction of 10,000 homes in the Kingdom - but more than ever there is a cross-over in technology.

BAE itself recently announced that it is entering a joint venture with Caterpillar to develop an energy efficient parallel hybrid propulsion system for heavyduty trucks.

As per the deal, BAE Systems will merge the Cat CX family of transmissions into its HybriDrive parallel propulsion system, and will establish an aftermarket field services model leveraging Caterpillar’s global service network to support the growing installed base.

The parallel propulsion system, which is the new member of BAE Systems’ HybriDrive family can improve fuel economy by an average of 30%.

HybriDrive was launched in the region last year, and Chris Colston says that, beyond the company’s tie-in with Caterpillar, he thinks it could be a success in heavy duty and commercial vehicle applications in the GCC. “Raising our profile here is important,” says the BAE business development director. “I think it is the perfect candidate for the Middle East to show it wants to be progressive in the area of hybrids.

“The UAE has potential and so does Saudi. Along with Qatar, those are the free that consistently get mentioned. Although we’re still finding out where the demand is. We’re going to work with our partners and stakeholders.”

In terms of developing the technology he says that HybriDrive has benefitted from BAE’s military knowhow: “We benefit from the depth and breadth

an investigation into Ferrostaal’s military contracts in the early part of the last decade.

MAN says that despite booking record sales last year its earnings were hit by one-off costs connected with a dispute over the sale of

billion euros. Underlying profit, on the other hand, jumped by 43 percent to 1.483 billion euros.

The drop in bottomline earnings “is primarily due to expenses in connection with the agreement between MAN, IPIC and MPC

IPIC frees itself from Ferrostaal Abu Dhabi investment company IPIC has freed itself from its troubled ownership of German plant company Ferrostaal.

Ferrostaal, a major supplier to the military sector as well as the oil and gas industry

54

CONSTRUCTION

MIDDLE EAST

March 2012

was purchased by IPIC in 2009 from German maker of trucks and engines MAN. IPIC initially bought 70% of the plant company but refuse to take whole ownership after German authorities launched

its Ferrostaal subsidiary.

MAN said net profit slumped by 66 percent to 247 million euros ($325 million) in 2011, despite a 14-percent rise in new orders to 17.145 billion euros and a 12-percent increase in sales to a record 16.472

regarding the disposal of Ferrostaal,” the German group explained.

IPIC had refused to buy Ferrostal citing a bribery investigation, and also tried to annul the original agreement.

In November 2011, MAN finally agreed to

of BAE but equally we have to think commercially.

We have to find a balance.”

While BAE Systems is a global company fighting for territory in the region, there are plenty of local companies that are looking to the military sector for business.

A wholly owned subsidiary of the UAE’s Offset Program Bureau, Tawazun is currently engaged in the long-term development of Abu Dhabi’s industrial manufacturing and technology capabilities, including knowledge transfer, with a specific focus on defence, defence manufacturing and manufacturing technology.

Established in 2007, the firm’s mission is to develop profitable ventures through industrial partnerships and strategic investments that add to Abu Dhabi’s industrial manufacturing layer and contribute to the balancing of the UAE economy.

Tawazun’s focused but extensive portfolio includes Nimr Automotive, a specialised vehicle manufacturer, and the firm recently showcased Nimr at military vehicle event IAV. Also Abu-Dhabi-based, Nimr produces a range of high-mobility, multi-terrain, multi-purpose vehicles designed to address the varied needs of international Armed Forces and security organisations.

These customisable, interoperable platforms, offering transport solutions for a wide range of combat and non-combat scenarios can be employed in many roles, including as armament or personnel carriers, logistics vehicles, ambulances, and mobile command and control centres.

buy back all shares of Ferrostaal from IPIC for 350 million euros and now plans to sell it to MPC Muenchmeyer Petersen Capital.

Looking ahead, MAN said it is preparing for “muted economic growth worldwide in 2012.”

With sales in the commercial vehicles division projected to decline, while the power engineering division would see a rise in sales, “across the MAN group as a whole, we expect revenue to fall.”

March 2012

CONSTRUCTION

MIDDLE EAST

55

Concept

Super trooper CMME takes a look at Renault’s Sherpa which makes its concept debut in Dubai this month.

B

ack in the 1970s, the US military unveiled a new plan to replace its big purposebuilt utility vehicles, the Gama Goats and M151 series. Both vehicles had racked up impressive service records. The M151 which first entered service in the 1950s had been a mainstay of the US Army’s ground support fleet during the Korean War and later Vietnam. The Gama Goat (Gama

56

CONSTRUCTION

MIDDLE EAST

March 2012

came from the name of the inventor of its powered articulated joint, Roger Gamount, and Goat for its mountain goat-like off-road ability) first broke out of the Project Agile programme started in 1959, and it too served with distinction even as the US faltered in its difficult conflict in Vietnam. By the mid-1970s the vehicles were in desperate need of replacing and the country instigated the Commercial Utility Cargo

Vehicle or CUCV Program to provide a cheaper and more reliable fleet. Vehicles including the Dodge D Series and then Chevrolet C/Ks were drafted with several military modifications.

The vehicles which had five basic configurations; cargo, utility, ambulance, shelter carrier, and chassis were purchased in the late 1970s and early 1980s from Chrysler Corporation, Dodge Division, and in the mid 1980s from General Motors Chevrolet, and GMC Truck divisions. Later a new vehicle was added that would go on to be even more famous, the Hummer.

The first Hummers were built by AM General and created under a contract for the United States armed forces. The first model, the Humvee, was built in a variety of military-based equipment and versions.

The S$1.2 billion contract won by AM General in 1983 was to produce 55,000 Humvees by 1985, which was later increased by 15,000 additional units. By 1989 the vehicles, made famous by the glut of action movies of the mid- to late-1980s were released commercially. With the first Gulf War beaming shots of them in action to the watching world madge the vehicle a surprise hit.

Today manufacturers are still looking to develop vehicles that have originated from military applications into the commercial vehicle and sports utility markets.

Among them is Renault’s Sherpa, the versatile full-time 4x4 vehicle can be adapted to multiple applications, was initially planned to be available in the Middle East in three models in 2012 - the Sherpa Scout for leisure buyers, the Sherpa Carrier pick-up truck for commercial use, and the fully armoured Sherpa Station Wagon used for transport purposes in high risk countries – although Renault have since decided to hold back on a full launch. However the machine will still be available for visitors at

the upcoming Commercial Vehicles event held in Dubai this month. (Commercial Vehicles Middle East, taking place from 6-8 March at the Dubai International Convention and Exhibition Centre.)

Renault began testing the first prototype Military Sherpa Truck in 2006 for more than two years in the toughest desert conditions of the Empty Quarter.

Marco Bonaveglio, Head of Marketing at Renault Trucks Middle East, said that the Sherpa Scout’s offroad capabilities make it unmatched as an all-wheel drive multi-terrain vehicle.

“With a ground clearance of 600mm, an approach angle of 40 degrees, and a centralised tire inflation system, the Sherpa Scout is capable of tackling the harshest and most difficult to access off-road terrain in the Middle East,” said Bonaveglio.

Measuring 5.43m long, 2.35m wide, and 2.1m high, the Sherpa Scout has ABS assisted four-wheel disc brakes, an automatic Allison gearbox, and can be fitted with racing seats and a dashboard to add contemporary styling to the functional and roomy cabin. It is not difficult to imagine both the leisure and commercial models find a niche in Dubai.

Bonaveglio added that the vehicle is ideal for hard to access locations such as oil and mining

exploration sites, or a fully armored escort vehicle in volatile countries.

“The Sherpa Scout’s application adaptability means it can be targeted towards certain niche markets that are not easily catered to,” he added.

“The Sherpa Carrier truck can transport up to twelve people, and the add-on armour capabilities of the Sherpa Station Wagon, including ballistic, hand grenades and anti-personnel devices provide a safe form of transport for diplomats and executives in high risk locations such as Iraq, while still capable of travelling at speeds of 110km/h.”

Renault Trucks will also showcase the 30 tonne GVW Kerax 6x6 heavy transport vehicle at Commercial Vehicles Middle East. Also built for off-road applications, the Kerax 6x6 is the official support vehicle for the Dakar rally in Argentina, and participated in the famous Renault Trucks expedition in 2009 between Cape North in Norway and Cape South in South Africa.

Continued Bonaveglio, “We will be using Commercial Vehicles Middle East as a key platform to showcase our capabilities as a manufacturer able of developing sophisticated trucks for every application and any kind of terrain.”

The Cape crusader Crossing 17 countries, and driving 30.000 km in 120 days. The Cape to Cape rally is a test for men and machine. The Renault Sherpa passed the test. Crossing 17 countries, and driving 30.000 km in 120 days.

The Cape to Cape rally is a test for men and machine. The Renault Sherpa passed the test.

Over 250 guests gathered for the RenaultTrucks Desert Adventure at Jumeirah Bab Al Shams Desert Resort and Spa, to discover the complete Desert Range including Renault Trucks’ newest creation, the Sherpa.

Stefano Chmielewski, President and CEO of Renault Trucks said, “Renault Trucks has

a long experience of manufacturing trucks specially adapted to the toughest desert conditions.

We have again recently proven the reliability of our trucks in the Cape to Cape Adventure, showing the capacity of our products in all conditions from North Cape, to Cape Town. ”

March 2012

CONSTRUCTION

MIDDLE EAST

57

The Last Word the desert.

Deserted in e re left in plac Machines we safety. to ed sh ru as workers

e oil and gas year on – som a er e ev ow H the star t of th new regime. anding – from st h e it ar w s ot ve n ti contracts n representa South Korea upr ising few in action. ntr y achines back m r ei th Libya, a cou g n seei post-Gaddafi a to on e ti si th The tran has not seen four decades, e countr y th ct fa he ruled for In r. was hoped fo g ready to stability that ay from bein aw er d. h rt fu vil war ende appears to be e since the ci m ti y d an an an g gineerin stabilise th ny Shinhan En homes in the Korean compa 00 ,0 10 st was building tive in the pa ac Construction rs ke or w ly on t s n it ctors se to countr y, but volunteer do of am te a Hospital. e month wer ah Teaching iy w Za to d ched ical ai provide med nor mally mat ’s boldness is ce said ea er or K m m th u co So ministr y of s it en sses ev t , nel safety lo

by China, bu e to “person du unts at co th ac th last mon ent, bank ntract paym co ”. , ce es n ag ra m ea and da , goods cl visa issuance is that the unfreezing, si a by tuation Li e orld, th of y g up to the w The iron owly openin sl en e th be to ad r h countr y dustry pr io oil and gas in ne back especially its a has now go by Li s ay w y an into an out of conflict. In m people going ly on e th d delegations. a decade an tative trade n te e ar y l Times the tr n the cou the Financia in rt po ade re a heduled a tr According to iation has sc oc l ss oi A h st it w Ea ciding UK’s Middle g weeks, coin t in i, r m ol ta ip co s e Tr re th in sitions mission in out a quick ucture expo s and infrastr ga Optimism ab dollar deals. d an on li il . d e c tial multib la n p te is po e n small m u rs s to pu e than a doze or “M : in Libya wa y id sa K have alread The report s from the U d on ti an ga re le ca de h healt business terest include in of as re A visited. d gas.” well as oil an rly need education as here they clea w s ea ar e m so e healt hcare,” ising in “There ar t urgently like oli told the e of the upr en al m sc ip e u th eq d In se. in Tr ip some new he speed an ry b y surpri tern diplomat ing t the indust a senior wes n sites rt, it is resum io id pa ct sa t ru os Lib ya caugh st m n e co th , r ed fo t su u “B at en newspaper. the chaos th hines left to must contracts.” ed wit h mac g d on in de d ok en an t, the world lo sp ab s e su wer r the momen cy of mob fo er m y, e el at th n u es at and ac hin Unfort e ar m y of m the elements embers of th e m t for Libya. th e ai m in w s So n . po ot to lo came wea be en ev y tr in the coun le. e in Libya, power strugg addafi regim G e th of ll fa e an influx of Soon af ter th airpor ts saw ed n e pe -o re s evaluate th the countr y’ ves keen to ti t. ta en en m es ip pr u r eq company re thef t of thei scale of the e vanguard. th at e er damage and w mpanies co n ea or sets but also K as th Sou r deserted ei th d n fi to ly business in Keen not on e willing to do er w ey th ce to pronoun torn countr y. e a national the civil war Libya becam to ck ba e g n ti Get e value of th Burst Boom pecially as th es n io ss y se tr n ob u co e th In 2010 Libya was poised for a ey had in te contracts th dollars. Despi of s boom in construction. An estimated on lli bi al ran into the transition om $52 billion in projects were planned fr s ce n ra assu in areas such as high speed railways, being swif tly t en m rn ve go orea ven, South K housing and roads. Today the future of sought and gi ad h it as , at th most of those projects is under certain. ed rn ce n was co ef fort to oust h it Libya faces a long struggle to ensure w do to little back it would fall it has the laws and institutions at th , fi da ad G the g order wit h for its reconstruction. in the peckin

o b m i l n i a Liby

T

58

CONSTRUCTION

MIDDLE EAST

March 2012