ISSUE 52 2016 FEBRUARY
PLUs
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hire fir in 2016 ay for aLL to PL
CH A i? i e w A y r t o t y re A D m aker’s
et the GenssaLes PUsh L reGiona
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try s u d n i e th e t a r s r ye a l p g i b e how th
2
CONTENTS
FEBRUARY 2016 8_NEWS The latest news from across the region and further afield.
16_NEW PLANT fOR bkT Tyre producer BKT inaugurates a major new plant in Bhuj, in Gujarat in north-east India.
22
18_hEAvy hiTTERS: REAdy TO TRy A WEichAi?
14 N Sp oT TerDIaI auS T0 articulating /7
In a year when rental companies are expected to buy a large number of generators, Weichai is aiming to leave its mark.
22_POWER uP! Major players in the temporary power supply market are confident about market prospects, despite weaker growth in some areas.
28_fORgiNg fORWARd Generator manufacturers reflect on the market in 2015 and on their
14
35 Genie ZX-1 al job an industri n o ft li m boo urg. near Salzb
prospects this year.
32_TiME fOR RENTALS TO ShiNE? As contractors ponder uncertainties in the market, rental companies seem set to see increased demand for kit on hire and lease.
r e w o raw p 44_ NEW R The latest
E L E A SE S
achinery.
struction m
d of con m the worl releases fro
EN 49_TOP T fo Safety tips
r operating
52_40T Pu s Caterpillar’
16
MEWPs.
Nch
a true 40 340D2 L is
-tonne ma
chine.
OLE STOP e. 56_SiNkh M Bertha on its Seattle job-sit New troub
le for TB
52
28
3/3
Daybreak…
And while the city sleeps, someone is already primed and ready for action.
Ready to stand firmer, react faster, and reach higher than ever before.
And that’s just as well. Because this job’s gonna get tough.
The bridge is fixed. The job, done. And the city is safe once more.
Our standard 3 year warranty will benefit you in many ways: CONFIDENCE
• Entirely re-designed range of Telescopic Handlers with best-in-class Bobcat technologies and quality standards • Efficient and Reliable − a Bobcat Telescopic Handler is built to last and to do the job every day as a real partner.
PEACE OF MIND
• High visibility on total cost of ownership • Higher resale value • Warranty is transferable to next owner
Contact your Bobcat dealer to get all information − including terms and conditions − about Bobcat’s Standard Warranty Policy.
BUT WAIT… SOMETHING’S UP DOWNTOWN…
4
EDITORIAL FEBRUARY 2016
GROUP FOUNDER DOMINIC DE SOUSA GROUP CEO NADEEM HOOD
PUBLISHING DIRECTOR RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 EDITORIAL DIRECTOR VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5713
EDITORIAL CONSULTANT EDITOR STIAN OVERDAHL
plenty of confidence in the air
stian.overdahl@cpimediagroup.com
Talking with a number of rental companies and manufacturers this month in CMME, it’s clear that despite a slow down in the number of contracts being awarded, there’s plenty of confidence within the industry. That may be because many of the brands in the Gulf markets have spent a long time building market share, which means refining their business operations and tailoring their offerings to fit the market. Service operations are finely tuned, while products are specced for the conditions. Customers know what they like, but as they look to trim costs, the question is whether they’ll stick with the tried and true, or whether they’ll be willing to dip their feet in new waters. If they’re looking to cut costs, they may look to Chinese-manufactured products as an option. With notably lower acquisition costs, many Chinese OEMs point out that their products can often be paid off in less time, meaning a shorter time before the machine is producing pure profit, which is a proposition that can appeal in uncertain times. With slow sales in the
+971 4 375 5497
Chinese domestic market, producers there have even more reason to go hunting for sales in the Middle East and internationally in order to keep their factories busy – or at least open. Nevertheless, traditional brands have the home advantage of having already invested heavily in developed service and distribution networks. As much as newer entrants see opportunities to gain market share, those with established footprints are also taking their game forward. As always, more competition can only mean one thing for fleet buyers, and that’s more choice. And that’s always a good thing.
+49 176 271 203 87 SUB EDITOR AELRED DOYLE aelred.doyle@cpimediagroup.com MARKETING & ADVERTISING COMMERCIAL DIRECTOR MICHAEL STANSFIELD michael.stansfield@cpimediagroup.com
MARKETING MANAGER LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498
DESIGN ART DIRECTOR SIMON COBON CIRCULATION & PRODUCTION DISTRIBUTION MANAGER SUNIL KUMAR sunil.kumar@cpimediagroup.com +971 4 375 5476 PRODUCTION MANAGER VIpIN V. VIJAY vipin.vijay@cpimediagroup.com +971 4 375 5713
DIGITAL
Stian Overdahl Consultant Editor, CMME
WEB DEvELOPER MOHAMMAD AwAIS WEB DEvELOPER UMAIR SHAMIM PUbLIShED by
Registered at IMpZ pO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com
PRINTED by printwell printing press LLC © Copyright 2016 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.
AFGHANISTAN FAMCO (Al-Futtaim Auto & Machinery Co. LLC) + 971 4 213 5100 (UAE) famco@alf uttaim.ae BAHRAIN FAMCO (Al-Futtaim Auto & Machinery Company) + 973 1783 0226 famco.bahrain@alfuttaim.ae IRAQ Sardar Automobile and Machinery Trading Co. + 964 750 344 4701 ihsan@sardarmachinery.com JORDAN Jamil Odeh and Sons Co. (JOSC) +962 6 4160409 info@jamilodeh.com KUWAIT Al-Zabin International Group Co. For Heavy Equipment + 965 2433 4721 alzabin@alzabinkuwait.com
keeps paving for longer
LEBANON AMTRAC (Abdelmassih Trading Company) + 961 3 425625 michel@amtrac-lb.com OMAN GENSERV (General Engineering Services Est) + 968 244 90755 sales@genserv-oman.com PAKISTAN VPL Limited + 92 42 111 875 875 uzair.shahid @panasiangroup.com QATAR Arabian Agencies Company WLL + 974 44 50 0925 araco@araco.com.qa SAUDI ARABIA FAMCO (Al-Futtaim Auto & Machinery Co. LLC) 800 124 4414 famco@alfuttaim.sa SYRIA Nassib Saad Est. Trading & Import + 963 11 222 5432 i.saad@saad-syria.com TURKEY Ascendum Makina + 90 216 581 80 00 info@ascturk.com UAE FAMCO (Al-Futtaim Auto & Machinery Co. LLC) 800 FAMCO (32626) famco@alfuttaim.ae YEMEN Elaghil Trading Co. + 967 1 207 470 elaghil@y.net.ye
In a recent side-by-side comparison against competitor pavers, the Volvo P6820C tracked paver achieved comparative fuel savings of up to 30 %. This remarkable statistic is achieved thanks to the P6820C’s Smart Power function, which reduces the engine’s maximum rpm from 2,000 to 1,600 rpm without sacrificing power, performance or quality. So the P6820C can keep paving almost twice as long using the same amount of fuel. Noise and vibration are also reduced, making for an improved Munich 11-17 April
operator environment – and making the P6820C better for the environment all round.
Hall C4:327 Outdoors: FM510
Building Tomorrow.
volvoce.com
6
ONLINE FEBRUARY 2016
L A U N C H PA R T N E R
CONSTRUCTION MACHINERY ME’s home on the web MOST POPULAR
1
EDITOR'S CHOICE
READERS' COMMENTS
Dubai fire investigation “nears completion”
Probe finds an electrical short caused the blaze PHOTO GALLERIES
2
Dubai’s Emaar appoints DUTCO to restore fire-
damaged Address Hotel Restoration to be carried out “in record time” after New Year’s Eve blaze
3
In pIctures: central Bank of kuwaIt headquarters China State Construction and Engineering Corporation (Middle East) won the 2015 Big Project Middle East Project of the Year Award for this building. See photo galleries at: meconstructionnews.com/photos
Arabtec, TAV clinch Bahrain airport contract
Construction deal part of
“Reducing cladding is a good option to prevent the spread of fire (“UAE to curb cladding use after Dubai fire – official”). I can also suggest one more option: external sprinklers every 3-4 metres in height would be an additional option to stop fire spreading. They could be easily controlled by the local building guard and helpful for fire and safety people as well. It can be monitored and controlled from ground floor for high-rise buildings” Syed Ibrahim, via the website
$1.1bn airport upgrade
4
READER POLL
Dubai fire: Emaar sees
What is your outlook for the construction industry in 2016?
“no material impact” on
company, hotel insured
16% 19%
Shares in the company fall on first day of trading after incident VIDEO
5
Saudi Aramco inks second deal to build
smart constructIon helmet wIth thermal vIsIon, ar
State-owned oil company signs
Intel and Daqri show off the smart helmet at CES 2016 in Las Vegas.
a contract to build 791 homes
See videos at: meconstructionnews.com/videos
homes for employees
Positive: Lots more projects on the table
Good: A few more deals
16%
49%
No change: About the same as 2015
Bleak: Business will be down on last year
Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com
S W NE 8
future tech
ConstruCtion helmets with Ar, thermAl vision unveiled in us
ojeCts, r p w e n , offiCes w e n , s e hin Around k o new mAC o l e tives – w onth A m i t s i i n h i t w ne At’s new h w t A n the regio
A smart helmet for use in the construction industry has been unveiled at the Consumer Electronics
JCB pRODuCES
Show (CES) by Los Angeles-based
100,000Th MInI-Ex
augmented reality firm Daqri.
JCB has marked
The Daqri smart helmet, powered
the production of
by an Intel processor and Intel
its 100,000th mini
RealSense technology, superimposes
excavator – with
work instructions over a worker’s
the promise of
field of view to improve recall and
adding machines
offer instructions on repair and
to its lineup as the
remote assistance in industries
company grows
like manufacturing, aerospace,
its market share
oil & gas and construction.
in the segment.
The helmet inserts real-time
JCB’s first mini
information, including augmented
excavator, an 801
reality work instructions, safety
model weighing
information and mapping, to
in at 1.4 tonnes,
maximise safety, productivity
rolled off the
and well-being for workers in a
production line
variety of industrial applications,
in 1989, when just
such as on construction sites.
over 450 machines
Daqri founder and chief executive
were made. By
Brian Mullins gave attendees a
1992, there were
first look at the newest helmet
four models in the
with an on-stage demonstration
range and annual
during Intel CEO Brian Krzanich’s
production rates
CES keynote in Las Vegas.
FAMCO opens first branch in Bahrain
had risen to 1,000
During the demonstration,
units. Last month,
an employee wearing a smart
the company
helmet performed field service
celebrated the
and equipment inspections.
Construction machinery supplier Al-Futtaim Auto and Machinery Company (FAMCO) has commenced operations in Bahrain. A launch event took place at the Ritz-Carlton in Manama last month, headlined by Volvo Construction Equipment, the main brand distributed by FAMCO. FAMCO is supplying top brands to customers in Bahrain, including SDLG construction equipment, Merlo telescopic handlers, Hartl crushers and screeners, Dexion industrial storage systems, Hart industrial doors, Steril warehouse docks, Nassau sectional doors and BP side loaders and forklifts. Commenting on the expansion,
Paul Floyd, senior managing director, said: “This is yet another milestone in our business expansion across the Middle East. Bahrain is a key market known for quality construction and infrastructure projects. Thanks to our new facility and highly qualified team, we very much look forward to playing a part in building the country through our contractor client base.” Mike Fritz, general manager at FAMCO Bahrain, Oman and Qatar, commented: “FAMCO is renowned for its customer support, which is a key differentiator. We look forward to the opportunity of bringing our proven standards to the Bahraini market.”
production of
The helmet, which was able
its 100,000th
to recognise the equipment the
compact excavator
employee was working with,
– a 10t 100C-1.
detected a potentially dangerous
It is one of 22
pressure problem and then used
models in today’s
augmented reality to give the worker
range, which
step-by-step instructions to fix it.
spans from one
“We have already demonstrated
to 10 tonnes. All
how the use of augmented reality
are manufactured
hardware and software solves
at the factory in
problems for our partners and, with
Cheadle, UK.
the addition of Intel technology, we are supercharging the Daqri smart helmet so that we can continue to drive the future of work,” Mullins said. The smart helmet will be available for purchase in the first quarter of this year.
All-steel casing Suitable on extremely rocky surfaces Extra-long tread life High puncture resistance Outstanding stability
bkt-tires.com
10
NeWS rOuND-uP FEBRUARY 2016
aPPOiNtmeNtS
mAnitowoC CrAnes Appoints new Ceo
Bauma innovation award nominees released
TEREx AWp’S nEW REgIOnAL SALES MAnAgER Terex AWP has appointed Gary Cooke as regional sales manager for the Middle East for the AWP business segment. He will report directly to Sharbel Kordahi, who was
German trade fair organiser Messe München has released details of 15 companies nominated for its Innovation Award. Winners will be announced on the evening before the Munich show opens its doors in April. The Innovation Award is presented in five categories: machinery, components, construction process/construction work, research, and design. A total of 118
SInOBOOM On MADInAh AIRpORT Sinoboom’s KSA distributor has delivered a GTJZ0808 scissor lift to the New Madinah Airport project. The delivery included providing training in operation and maintenance. The unit was purchased by Vanderlande.
applications were received from Germany and abroad. The jury has now selected three new developments in each category to go forward to the final round. According to the organiser, all of the nominated innovations offer significant practical benefit and economic potential, are sustainable and make a contribution towards energy and resource efficiency or towards the humanisation
of the workplace. Trade journalists attending the bauma Media Dialog will be asked to participate in the judging by voting. The nominated machines for machinery category are the Kramer 5055e wheel loader, produced by Kramer-Werke (part of the Wacker Neuson Group); the Autonomous Vibratory Plate, from Ammann Schweizl; and a mobile battery mould, from Weckenmann.
recently promoted
The Manitowoc Company has
to MD for Terex
appointed Barry L. pennypacker
Material Handling
president and CEO of Manitowoc
& AWP, Middle
Cranes. pennypacker, who assumes
East & Southern
his responsibilities immediately, has
Africa. Cooke’s
most recently served as founder,
principal role
president and CEO of Quantum Lean
will be to support
LLC, a privately held manufacturer
distributors and
and supplier of precision components.
channel partners
prior to that, from 2008 until 2012,
of Genie products
he was president and CEO, as well
in the Middle
as a director, of gardner Denver
East, and establish
Inc, a manufacturer and marketer of
new distributor
engineered industrial machinery and
relationships
related parts and services.
within the region.
upon the execution of the previously announced spin of Manitowoc Foodservice, The Manitowoc Company, Inc will change its name to Manitowoc Cranes, and pennypacker will then serve as president and CEO.
M a MMoe t t r a n s p or t s 3 0 6t d u M p e r
Heavy transport firm Mammoet has managed the tra nsportation of a Cat 797 dump truck , which normal ly m us t be transported in pa rts and assembl ed at the customer ’s site, adding extra tim e an d co st to the delivery proc ess. The 797 ha s an un la den weight of 306t and a gross oper at in g weight of 687t. It was transporte d from Fort McKay in no rthern Alberta, Canada to a min ing customer site.
11
Brazil sees 7% rise in machinery exports to Arab world Brazilian exports of machinery and construction products to Arab countries grew by 7% last year, according to the Arab-Brazilian Chamber of Commerce (ABCC). Arab countries purchased $226.3 million worth of machinery in 2015, compared to $211.4 million in 2014. The growing volume of outbound trade demonstrates rising demand for Brazilian products in the Arab world, ABCC said in a statement. The top three importers of Brazilian machinery were Egypt at $63.8 million, Saudi Arabia at $56.23 million and the UAE at $51 million. Self-propelled bulldozers and angle dozers were
the most traded items, followed by self-propelled front-end shovel loaders. Other top items imported from Brazil included graders and levellers, compressors for refrigerating equipment, and compression-ignition internal comb piston engines. “The robust trade of
machinery and construction goods from Brazil to the Arab world reinforces the growing popularity of high-quality Brazilian products in the regional markets,” said Dr Michel Alaby, secretary general and CEO of the Arab-Brazilian Chamber of Commerce.
LIugOng CLAIMS Gcc rail
FIRST EngInE
uAe’s etihAd rAil suspends stAge two tenders
pATEnT LiuGong has
“Arab countries have shared extremely amicable business relations with Brazil and have contributed significantly to [the] local economy by regularly exporting Brazilian products, and the demand will continue in the mid- and long term in the booming Arab construction sector.” The UAE leads the Arab region in importing construction goods from Brazil, with a value of $15.25 million last year, followed by Saudi Arabia and Egypt at $7.69 million and $7.15 million respectively. Among the most imported items are plywood, veneered panels and granite. A number of top OEMs manufacture in Brazil.
ALIMAK WInS ORDER In KSA Alimak Group has received several orders for construction hoists and work platforms in Turkey, Algeria and Saudi Arabia. The total order value is $1.2m. The new orders of construction hoists and work platforms will be delivered during the first and second quarter of 2016.
13 Wolffs on Kingdom Tower
been granted a patent for the development of an engine power control method to improve the load capacity of engines. It is the first Etihad Rail has suspended
most complex infrastructure
engine-related
the tender process for stage
projects ever undertaken in
patent received
two of the uAE’s national
the uAE. As we enter 2016,
by LiuGong
network, pending a review
we have been working
for engine
of the project. All bidders
closely with our partners and
manufacturing.
have today been informed in
stakeholders to assess our
The patented
writing. The phase of works
strategic priorities for the
technology has
involves the construction of
year. As a result, a decision
been applied to
a rail network in Abu Dhabi
has been taken to suspend
its H-series wheel
connecting to the Saudi
the tendering process for
loaders, which are
border at ghweifat and the
stage two whilst we review
operational in the
Omani border at Al Ain,
the most appropriate timing
Middle East.
as well as areas including
for this investment.”
Mussaffah, Khalifa port and Jebel Ali port in Dubai. nasser Alsowaidi, chairman
Operations on stage one of the network, Shah and habshan to the port
of Etihad Rail, said: “Etihad
of Ruwais, which recently
Rail is one of the biggest and
commenced, are unaffected.
Capping a successful run for tower crane manufacturer Wolffkran in Saudi Arabia, the company has announced that its KSA distributor Roots Group has placed thirteen Wolff cranes for the construction of the Jeddah Tower, which is being built by Saudi Binladin Group (SBG). Under construction in Jeddah, once completed it will be the tallest building in the world at over 1,000m above sea level. Twelve type Wolff 7532
saddle jib cranes are on the site, used primarily for moving loads on the ground and for construction of the podium at the base of the tower. Also in operation is a luffing crane Wolff 355 B with a 40m jib and a maximum lifting capacity of 28t. It is positioned in the triangular core of the tower, forming the focal point of the Y-shaped building floor plan. According to Wolffkran, a second Wolff 355 B is to be set up in the near future.
12
NeWS rOuND-uP FEBRUARY 2016
iNfraStructure
gCC trAnsport to grow beyond expo 2020 And 2022 world Cup
Cat partners with drone analytics firm
Caterpillar has announced a new marketing agreement with Redbird, a pioneer in the acquisition and analysis of aerial data collected by unmanned aerial vehicles (UAVs), or drones, to cover the Europe, Africa and Middle East region. According to George Taylor, vice president with responsibility for the Marketing and Digital Division at Caterpillar, Redbird’s ability to both collect drone data and provide analysis of that data using cloud-based, proprietary algorithms offers significant benefits for its customers. “Caterpillar is always searching for ways to collaborate outside our four walls to give our customers and dealers a competitive edge,”
said Taylor. “By joining with companies leading the way in the digital revolution, we have a chance to positively impact our customers’ and dealers’ businesses.” “Drones are entering a new phase, with data analytics as the heart of this evolution,” said Emmanuel de Maistre, CEO and cofounder of Redbird. “Our solutions have been developed with leading construction companies and quarry operators for the past two years, helping them extract the real value out of drone data. We are honored by this collaboration with Caterpillar, which will bring tangible benefits to construction sites, mines and quarries, helping customers work faster and safer.”
r three-y e afor y wa rr a n t ele s t BoBcat ew standard three-
n t launched a e of Bobca Bobcat has plete rang m co e th f r o nty fo 0 years year warra well over 5 t dlers. With an h ign, Bobca le es te rigid uipment d eq t , ac n p ig m in co ity des experience r high-qual putation fo re n vailable as ve A ro e. p has a er servic m o st cu on d ring an and Africa manufactu iddle East M e th r e, le p Euro telehand standard in bcat rigid o B e th th in dels reflects e all the mo ar warranty ye ere th new products range, the ility of the ab li re d an y plant at high qualit company’s red at the u ct fa u ti an m Atlan que u in Loire Pontchâtea in France.
The gulf transport
intelligent transport
sector will create
systems needed
ongoing opportunities
to make cities and
for the construction
highways smart, will
industry beyond major
keep investment
events like Dubai Expo
in the transport
2020 and the 2022
infrastructure sector
OMAn pLAnS
World Cup in Qatar,
growing, albeit at a
$260M MInIng
a leading expert says.
lesser scale,” he said.
VEnTuRE
The unprecedented
Oman’s largest
growth in big projects
transport sector will
sovereign wealth
is expected to slow
see a relative decrease
fund plans to
down after these
in its growth with some
cooperate with
milestone events – but
major projects and
other state and
it will not stop, said
infrastructure schemes
private investors
Imad nassereddine,
likely to carry on to
to establish a
regional transport
be ready for the 2022
venture to buy
solutions director at
World Cup, and further
into the mining
Mouchel Middle East.
to achieve its Vision
industry. The
“The long-term
“In Qatar, the
2030. The plan for Abu
venture, Mining
plans for the rail sector
Dhabi is also to make
Development
across the gCC, the
its transport systems
Oman, will have
expansion of the road
smart so as to attract
$260m of capital
network to facilitate
visitors and retain
and establish
access to city suburbs
residents. This is an
vehicles for its
and large investments
objective that is on its
investments. An
in technologies for
way to being achieved.”
executive told Reuters that the fund would be a partial investor in mining projects, seeking partners locally, regionally and internationally.
ARABTEC, TAV WIn BAhRAIn AIRpORT COnTRACT A joint venture between Arabtec and Turkey’s TAV Construction has won a major contact to build a passenger terminal at Bahrain International Airport, which is undergoing a $1.1 billion upgrade. The scope of the contract includes construction of a terminal, a services building as well as an aircraft bay.
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March 1 & 2
2 – 2009 CATERPILLAR D6T
1 / 2 – UNUSED – 2014 & 2013 CASE 1021F
2 – 2008 CATERPILLAR 966H
2 / 3 – 2012 DOOSAN MEGA 400V
JCB 456Z B03
2 – 2011 VOLVO L150G
1 / 6 – UNUSED 2014 & 2013 NEW HOLLAND RG200B
2 – 2011 TEREX TA300
3 / 5 – 2015 CATERPILLAR 320D SERIES II
2 / 4 – 2013 CATERPILLAR 320D SERIES II
2010 DOOSAN SOLAR 300LC-V
1 / 6 – UNUSED 2014 & 2013 CASE 580ST & 580
2 / 3 – 2008 JCB 3CX 4x4
2009 LIEBHERR LTM1160-5.1
LIEBHERR LTM1100-5.1 AT
LIEBHERR LTM1050-1
1 / 5 – UNUSED – 2014 NEW HOLLAND L225
3 / 7 – MERLO PANORAMIC 50.18HM
UNUSED – 2013 NEW HOLLAND LM1333
3 / 20 – 2007 MAN TGA19.400 4x2
rbauction.com | +971.4.812.0600 Auction location: Gate 8, Junction 9, Jebel Ali Free Zone P.O. Box 16897 Dubai, United Arab Emirates
14
Genie ZX-135/70 articulatinG boom in austria
W
hen Inocom Construction needed to install a giant steel framework to cover a 43m drying tower facility within a tight three-and-a-half-week deadline, they called on local Austrian rental firm Rachbauer GmbH & Co KG to supply the equipment. The construction of the frame was part of a process aiming to preserve the facility from the elements, prior to an overlay of protective cladding. For the job at the cement, plaster and mortar plant near Salzburg, Rachbauer mobilised a Genie ZX-135/70 articulating boom lift for precision work, operating alongside a 220t mobile crane. The ZX-135/70 was chosen following an on-site visit and an accurate job plan was established with the help of the latest planning software. The AWP offers the 43m maximum working height that the job required, maximum horizontal outreach of 18.03m, fast 96s lift speed to full working height and a platform load capacity of 272k. “The ZX-135/70 is ideal to access hard-to-reach areas with ease, notably around corners and over deep ledges,” noted company owner Christian Rachbauer. “When it is necessary to move the machine, instead of retracting the boom, the machine’s full height drive function enables operators to drive the machine directly to its next position with the boom fully raised. This worked out as a great time-saver for Inocom, and subsequently reduced costs for its customer.” “Thanks to its proportional controls, the movements of the machine’s three-section articulating boom are impressively smooth and accurate. We find that this provides operators the confidence they need to stay focused on their job, and helps increase their efficiency.” In the short time it took the Rachbauer team to familiarise Inocom’s operators with the ZX-135/70, work kicked off to a great start exactly according
to plan. As the crane hoisted each huge element of the frame separately to the required height, equipped with electric power drills, the two-man team progressed rapidly. The job was completed a couple of days ahead of schedule.
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JLG® MID-SIZE BOOM LIFTS—GREATER CAPACITY AND LIFT SPEEDS Ramp up productivity with the new 400S and 460SJ boom lifts. Faster lift speeds mean you’ll spend more time working, less time positioning. And the higher platform capacity and improved work envelope maximizes efficiency on the job. Get impact protection and a more modern look from the new DuraTough hoods, which also allow for better serviceability. Learn more at www.jlg.com/en-gb/destination/boom-lifts JLG Industries | JAFZA View | PO Box 262728 | LB 19, 20th Floor, Office 05 | Jebel Ali | Dubai | emacangus@jlg.com
16
LAUNCHES FEBRUARY 2016
ExpEctEd to rEach full capacity by thE End of this yEar, bKt’s nEw tyrE manufacturing plant in bhuj, india is alrEady producing 150t of tyrEs pEr day, for forKlifts, straddlE carriErs and whEEl loadErs
BKT inauguraTes new planT in Bhuj
w
hen establishing new factories in India, manufacturers often face a series of well recognised problems, including defects in utilities and infrastructure, and challenges moving products to port. Tyre manufacturer BKT, headquartered in Mumbai, seems to have solved these: its new factory in Bhuj, in the state of Gujarat, is just 60 km from the port of Mundra on the Arabian Sea (roughly 1,150km from Muscat, Oman), and the six-hectare industrial park has an 8km pipeline for drinking water and 13km of electricity lines laid. The $500m plant won’t be fully completed until the end of this year, but was inaugurated in late 2015 and has daily production of 150t, about 50% of planned maximum production capacity. Tyres currently produced include 22 sizes of the Maglift solid tire and various measures of Liftmax LM 81 tire, both for forklifts, in addition to Portmax PM 93 in size 280/75 R 22.5 for straddle carriers, and the giant Earthmax SR 45 Plus tyre for dumpers. Facilities at the site include a small town for employees, including flats for 406 families, a mall, a green area, a recreation centre, a medical centre and a fire station. A new R&D centre is being built nearby, for research on new polymers and tread compounds. On the other side of the complex, a thermoelectric power plant covers the need for water vapour and electricity throughout the entire site. Enormous water collection tanks
provide water reserves even in droughts. The Bhuj testing track, the one and only in India, tests tyre performance and driving comfort on different surfaces, from uniform road conditions to rough terrain. Speaking at the inauguration, Lucia Salmaso, MD of BKT Europe, described the Bhuj production site as a milestone in BKT’s growth. “Not only for its high levels of technical and quality standards, but also because it is the BKT plant that is situated at the closest distance to a port – a decisive factor to speed up delivery time. Likewise, this is a great benefit for companies that have chosen BKT tires as original equipment.” Arvind Poddar, chairman and MD of BKT, alludes to chess to illustrate BKT’s philosophy. “There is a unique trait that distinguishes a true champion from a mere player: the versatility to adapt his/ her strategy to the challenges entailed in each game. One move after the other, BKT has created and reached its objectives. Thanks to the new Bhuj production plant, the company is now ready to change the game, acting as the game-changer on the global chessboard.”
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HEAVY HITTERS FEBRUARY 2016
Ready to tRy a Weichai?
Believing that 2016 will Be a Busy year for acquisitions By rental companies of generators, chinese manufacturer weichai has geared up its product and total package offering to meet middle east requirements, explains amit deshpande, weichai international director of sales & marketing – middle east
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016 is shaping up to be a big year for rental companies in the Middle East, with many signs that contractors are going to look to short-term use options in order to preserve their capital. For sellers of equipment, that means there’s all to play for. One company hoping to make its mark this year is Weichai. The Chinese engine producer, founded in 2002, produces engines and driveline components for trucks, buses, construction machinery, and power and marine applications. From its headquarters in Weifang, Shandong Province, the company reported revenue of $12.1bn (RMB 79.64bn) in 2014. On the power front, the manufacturer has been selling products into the Middle East for six years, selling roughly 1,000 units. In 2014, faced with lagging sales in the Chinese domestic market, the company opened a formal Middle East office in Jebel Ali Freezone in Dubai, to function as its regional headquarters. The brand has arrangements with dealers and distributors throughout the region. This year, the company is looking to make a big push in the energy sector, explains Amit Deshpande, Weichai International director of sales & marketing – Middle East. Deshpande, a power industry veteran, says that due to customer demand and equipment replacement cycles, many rental firms will be updating or expanding their fleets. With most rental companies operating on a standard three-year replacement cycle, that means many units purchased when the market started picking up in 2011-12 are ready to be replaced. In addition to rental companies, Weichai is also targeting construction companies and telcos. Deshpande believes the firm, which produces over a million engines a year, is well placed to grab market share in the energy sector. Its high-speed engine range starts at 10kVA and extends to 1,250kVA. It also offers a range of medium-speed engines which can operate
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Weichai is hoping to take advantage of the market conditions in 2016 to boost its sales and market share.
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HEAVY HITTERS FEBRUARY 2016
on heavy fuel oil (HFO), which extends from 300KW up to a 10MW single unit. Weichai has “a full end-to-end, in-house manufacturing” process, says Deshpande, covering diesel engine components, the engine itself, canopies and other critical components. Some components, including alternators and radiators, are sourced from local suppliers in China. Weichai has a number of joint ventures in place. For its genset range, it has an arrangement in place with Deutz for some of its smaller engines, covering the 20-150kVA range. For its 450-1,250kVA range, Weichai has acquired Baudouin, a century-old French engine company. “This is French technology manufactured in China,” says Deshpande. In the higher range, there is also an association with Germany’s MAN. “With these three associations, and Weichai’s own R&D investment in technology, we believe our product is highly reliable, which is a key factor for customers.” The brand’s promise, says Deshpande, is “good quality, reliability, at a low cost of acquisition and low cost of operation”. It also promises short delivery time and good availability of spare parts. On the price front, Weichai is approximately 25% cheaper than the offering from a premium market competitor, he says, while Weichai’s package includes a longer warranty, plus one year free servicing: for a premium brand to match this would push their product price to about 35% higher, he estimates. An important feature contributing to lower running costs is the 500-hour routine maintenance interval on all engines, longer than the 250 hours typically offered by other OEMs. The longer service interval means not only less use of spare parts but also fewer trips by the rental company’s service team to installation sites to carry out the service, and can even halve operation costs. Ultimately this adds up to a lower total cost of ownership (TCO), which is essential for rental companies, contractors and telcos, notes Deshpande. In order to boost its attractiveness to the market, this year Weichai has begun offering customers a two-year warranty as standard for prime application. It’s also offering one year of free service to customers in rentals and telecommunications segments. This offering was developed following market research into the requirements of the rental and telecom sectors. The company has three regional service offices – in the UAE, Saudi Arabia and Iran – with a fourth to be set up this year in Lebanon. In addition, there is a network of
“We believe that the rental market in the Middle East will grow by somewhere between 15-20% this year” service and spare part dealers in all of the GCC countries. The company’s service offering is also bolstered by the economy of scale that comes with producing engines for the automotive market and other sectors, including construction machinery. “Through these other applications, we have an engine population of over 10,000 engines in this market. We have established a parts distribution centre in Jebel Ali; because of the large population, we are able to keep a stock of most of the spare parts that are required for these engines in the local market. On a global scale, we are talking about roughly a million engines. Not many engine manufacturers have this kind of scale, and definitely it helps Weichai to be more competitive.” Deshpande says that a lack of liquidity among contractors is evident in the market. He believes that will push more to rely on short-term utilisation of equipment – including gensets – from rental players, since that means they can quickly scale back
Amit Deshpande has a track record working for generator companies in the MIddle East.
plant costs if a project is delayed or even cancelled. “We believe that the rental market in the Middle East will grow by somewhere between 15-20% this year. A factor driving that is a lot of the equipment purchased by the rental players over the last four-five years is ageing, and so part of this growth will be ageing of their old fleet, part of it will be new fleet acquisition and a few new rental players entering the market.” While the rental market will grow, increased competition will also force down margins, says Deshpande. “There are pricing pressures and margin pressures on the rental players themselves. We believe this is where Weichai will have its advantage. Being a competitively priced product as well as having a low total cost of ownership makes it the ideal product for the rental fleet owners.” Looking to the operational specifics of the Middle East, Weichai has designed its products to cope with the high temperatures, the dust and tough site conditions. “We did not pick up the same product we are selling in China or elsewhere and start pushing that in the Middle East – that definitely would have been a recipe for failure. For the Middle East, we have features like heavy-duty air filter, strong and sturdy base frames, because rental units are frequently shifted from one site to another.” Perhaps most importantly, the gensets are fitted with a radiator and cooling package allowing them to operate in ambient temperatures of up to 50 degrees. “Our units are tested, and our ratings that we declare are at 50 degrees ambient conditions.” The extended maintenance interval also fits the Middle East well, especially on the kind of remote job-sites found in Saudi Arabia, says Deshpande, which can be a long distance from cities. “It’s a real advantage for clients to have a longer maintenance interval.” The most frequent causes of damage to gensets on construction sites, whether they are owned by rental firms or the contractors themselves, are lack of maintenance, such as batteries not being replaced, or damage caused by customers loading units beyond their capacity, causing overheating or other damage. “We are ensuring we are providing maintenance-free batteries, which have longer life, and we have adequate protection in our control systems to avoid misuse and overloading of the equipment.” With the price of diesel fuel no longer subsidised in some GCC markets, and with governments having generally signalled that diesel subsidies will be removed, fuel efficiency is front of mind for buyers, since
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Weichai’s range includes units designed by Deutz and Baudouin, but constructed by Weichai in China.
there’s no knowing what the price of diesel will average over a genset’s operating life. Deshpande says buyers these days are more focused on fuel efficiency, especially since rental firms are sometimes responsible for supplying fuel. “Having a fuel-efficient engine is going to be a differentiating factor, and a selling point for the rental sector. Weichai is well placed, because of the German and French technologies we have.” If diesel costs rise, this could also result in increased demand for natural gas gensets, believes Deshpande. The units are currently most popular in Yemen and Iran. Heavy fuel oil (HFO) units may also be in greater demand. HFO is a lower grade and cheaper fuel. “With the pressure on diesel prices going up, and its effect on TCO, we believe that there is going to be market for the heavy fuel equipment when it comes to bigger capacity power plants, starting from 5MW upwards. HFO is going to be the preferred fuel for this range, especially for Saudi Arabia, Yemen and in Africa.” In terms of Weichai’s market strategy, Deshpande says the firm is well aware that standardisation of equipment is a cornerstone of the business practices of larger rental firms, which can make it harder for a newer Weicha entrant to win orders. He says i’s their strategy is to enter the of high range -s market through sales to small engine peed gensets and medium-size companies. “They are more open to multiple brands in their fleets. They’re more cost-conscious, and they’re more open to trying out new products. For them, being competitive is a real sustainability issue in the market.” Once Weichai has a good reference base with the small and medium-size firms, they will go after larger ones, says Deshpande. They’re also in discussions with larger firms to run trials of Weichai gensets. “Once they’re happy and satisfied, we have commitments from them to start off with small quantities of our products.” Overall, Deshpande believes Weichai is in a good position to grow its market share as rental companies and construction firms focus on aggressively reducing costs in 2016. “Purchasing is going to be more driven by cost rather than driven by delivery and lead times. Government entities are looking to reduce their costs, so that is going to trickle down to the contractors and rental players – we see them as having a lot of pressure on their margins this year.”
101,250kVA
“Purchasing is going to be more driven by cost rather than driven by delivery and lead times”
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COVER FEATURE FEBRUARY 2016
Large installations are complex and demanding projects, while specific requirements can boost the challenge.
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POWER UP!
In the challengIng Industry of bIg power projects, major Industry players are confIdent about the year ahead, despIte challenges that Include declInIng Investment In oIl and gas
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s development of the GCC’s infrastructure and utility sectors continues apace, providers of large-scale power projects, a vital resource for the region, are busier than ever. The region is served by a number of large companies, both homegrown rental companies and international players with a presence in the region. Said to be the largest temporary power generation company in the world, Aggreko has a long history in the Middle East, having opened its first regional office in Sharjah in 1991. The company now has operational facilities in Oman, Qatar, Bahrain, Kuwait, Saudi Arabia, Iraq and Turkey. “Having a local presence and the required products within the operating country allows us to deliver solutions quickly and costeffectively to our customers,” says Phil Burns, managing director – Middle East, Aggreko. “In case of large projects, we can quickly mobilise resources from our Middle East network, thereby fulfilling the customer’s needs. As we are all aware, the Middle East is a rapidly developing market. This growth means organisations often need temporary power while the local utility grids upgrade their permanent power capacity. Aggreko’s growth in the region has been consistent with the market.” Aggreko has a Power Projects operations, technology and technical training centre in Dubai, a key hub in the company’s logistic network, with other hubs in Panama, the Netherlands and Singapore. “Our sites are located to offer quick response, economies of scale and to keep transport costs down. It’s about agility and giving our customers what they want in the most efficient manner possible,” says Burns. One of Aggreko’s key points of difference is that it manufactures its own gensets, having developed its G3+ and G3+ HFO solutions in-house, a product based on the Cummins fleet that Aggreko has traditionally deployed. In 2012, the company opened a new facility in Dumbarton, Scotland to develop and manufacture new products, including the G3+.
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COVER FEATURE FEBRUARY 2016
This unit is well suited to the demands of the Middle East, says Burns. “It is not only more powerful and fuelefficient – producing 14% more power at 12% lower cost per MW – it also operates at full rate up to 45°C, which is beneficial in the Middle East’s extreme climate.” The G3+HFO engine variant is able to use heavy fuel oil (HFO), which is prevalent throughout the region and cheaper than refined fuel. “Our G3+HFO engine variant produces power at around half the cost in $/ MW than traditional diesel alternatives, which is a significant win for our customers in the Middle East,” says Burns. Saudi Arabia is the largest market in the GCC, and has particular demand for large temporary power installations, whether to bolster existing infrastructure or provide a total solution. These large projects require many factors to be considered and rely on a great deal of planning. “For example, ensuring that the project is delivered in a cost-effective manner within the customer’s timeline is always a challenge, given that the scope of projects often changes in size and technical complexity at the last minute,” says Burns. “To mitigate this, we have a flexible project deployment model able to counter and react to last-minute changes.” Aggreko services a wide range of sectors, including the events sector, while its equipment is widely used in the construction sector, including on infrastructure projects in Qatar. In the power rental and cooling
industry, “We offer many value propositions including responsiveness, decades of global experience, unwavering commitment to safety, product innovation and customer service,” says Burns. “The construction sector is an important market for us but we also provide rental solutions and services to all key industry sectors, including petrochemical, manufacturing and food and beverage. These markets are equally important, not only for power, but also for our cooling solutions in the Middle East region.” As for what customers want, Burns points to the G3+ and G3+HFO units as “obvious examples of how we developed an offering to respond to challenging conditions and bring cost savings in the region”. Like many in the industry, Burns sees mixed developments when it comes to the drop in oil prices, with resulting cuts by companies working in the oil and gas sector who are looking to trim costs. “Some planned projects have been affected by the drop in commodity price, as well as the geo-political challenges that exist in areas of the Middle East. However, our short- and medium-term rental solutions have helped a number of customers free up capital by offering an alternative to outright purchase of power assets.” TOp OF ThEiR gAmE
One of the newest companies is Altaaqa Global, founded in 2012. It has two well-
Aggreko services a wide range of sectors, including construction.
known names behind it: Zahid Group and Caterpillar. Zahid formed Altaaqa Alternative Solutions in 2004, focused on the Saudi Arabia market. The company grew to be the largest Caterpillar power generation fleet owner in the world and the premier rental power services provider in the Kingdom, says Julian Ford, chief commercial officer at Altaaqa Global Caterpillar Rental Power. “With the desire to replicate the success of Altaaqa Alternative Solutions on a global scale, Zahid entered into a Global Power Projects [GPP] agreement with Caterpillar and formed Altaaqa Global in 2012. Altaaqa Global was appointed by Caterpillar to deliver multi-megawatt turnkey rental power projects around the world. “Since then, we have widened our geographic coverage, opening branches in Bangalore, India; Nairobi, Kenya; and Johannesburg, South Africa. We have also secured several contracts in key regions across the globe, including the Middle East and Sub-Saharan Africa.” Altaaqa Global and Altaaqa Alternative
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“This growth means organisations often need temporary power while the local utility grids upgrade their permanent power capacity” Solutions have a combined fleet power capacity in excess of 1,600MW. The fleet includes generators running on diesel, natural gas or a combination of the two. The GPP model means that, in addition to Altaaqa Global’s in-house capabilities, the company – which is an authorised Caterpillar dealer in its own right – has access to the wide range of technical, engineering, logistical and service and maintenance resources of other Caterpillar dealers around the world. “Being part of the global Caterpillar dealer network, we also have access to the power generation fleet of our co-dealers anywhere in the world, giving us exceptional fleet capability and flexibility to meet even the largest customer demands,” explains Ford. “In mobilising for a project, for instance, we may tap the power generation resources, technical and engineering expertise and logistical facilities of the local Caterpillar dealers where we operate, or of any Caterpillar dealer around the world. We also have access to locally available parts and
can call for local maintenance service or technical support. Thanks to this synergy, we are able to provide for a quick and efficient installation of power plants and ongoing support for projects anywhere in the world.” Being a dealer also means the company works closely with the OEM product development team to share perspectives on customer requirements in the power rental business. “In this way, we expect to further improve our already competitive position to meet the evolving needs of our customers.” Altaaqa Global has said that it wants to be “the leading and most preferred temporary power solutions provider” before 2020. Asked about possible industry changes over the next five years, and the need to future proof the business, Ford notes that the role of temporary power has evolved from a local, short-term, transactional activity to a major global project-based industry. “It is no longer uncommon to see power plants of 100MW and up being rented on a longer-term basis. We expect that the diesel generator market will continue to
Headquarted in Al Khobar, Peax is geared up to meet challenging project requirements.
thrive, and that the natural gas market will continue to gain traction. To keep abreast of the opportunities in the coming years, we will continue to hone a highly skilled, motivated and experienced world-class power projects team. At Altaaqa Global, we strive to lead the evolution of the industry, and to be recognised as the premier source of innovative technical solutions and the highest level of customer service and support.” Another area where the company is looking to future proof its business is alternative fuel sources, especially natural gas. Use of natural gas is less common in the Middle East than in some other regions, because historically there has been access to cheap diesel and the natural gas infrastructure is under-developed. This is now changing as diesel subsidies are being dismantled in many countries in the GCC. Ford says that while the diesel generator market is expected to continue to grow and diesel will remain the preferred fuel in the next several years, Altaaqa Global is noticing the gradual growth of the natural gas and dual-fuel generator market as natural gas becomes available. “The growth of the market is supported by the increase in unconventional gas resources in many countries, not only in the Middle East but also in other parts of the world, and by the lower operating cost afforded by running power plants on gas or gas-diesel combination.” The issue of supply is also being solved by better availability of natural gas, as well as dual-fuel gensets. “In the past, fuel availability and the costs of installing safe and reliable fuel delivery infrastructure have hampered the growth of the natural gas generator market. Today, gas is becoming increasingly available and gas generation technologies progressively find application in bigger and longer-duration projects. The availability of dual-fuel generators, which significantly simplifies the transition from diesel-run to gas-run generators, is also helping overcome these obstacles.” As for the prospects of the industry in 2016 and beyond, Ford says that beyond the fact that the lower prices make it cheaper for generators to run, the requirement for generators is proportional to the rate of economic activity. “At present, the prices of oil and commodities are suppressed, and this is having a negative impact on the interest in power generation services. However, we expect the industry to rebound quickly as and when economic conditions improve.”
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COVER FEATURE FEBRUARY 2016
pEAk pERFORmAnCE
Headquartered in Al Khobar in Saudi Arabia and with branches throughout the kingdom, Peax Equipment Rental is a well-known name in the industry. Its energy and power plant division supplies individual or multiple unit rentals to customers, who operate units themselves with Peax carrying out routine maintenance. Peax also builds and operate temporary power plants. “For these projects, we are synchronising multiple large generators together and creating a temporary power plant, with all its required accessories, for a continuous and smooth operation and uninterrupted power supply,” says Mohamed Ibrahim El Naggar at Peax’s project management office. With the rental market steadily growing, El Naggar identifies some of the key advantages for customers over buying, including reduction in capex; higher availability of equipment, without the need for customers to worry about maintenance and spare parts stocking; and flexibility in increasing and decreasing a fleet based on immediate demand. Another advantage is that customers can guarantee they have the latest technology in the market, rather than using an older generation of equipment. And with its presence in the Eastern Province and a long history supplying to the oil & gas sector, Peax has an offering that extends across special projects and applications. “We have a strong, specialised and highly educated engineering team to support in sizing the required power source and providing the most efficient solution,” says El Naggar. One recent example is a temporary 15MW power plant in a remote village near the border. “We needed to synchronise it with the client’s available main grid to provide a source of sustainable power supply to both the residential area nearby and the border custom operations zone,” explains El Naggar. In another, Peax installed and operated a 20MW power plant which supplies power to one of the main water pumping stations in a main city in the central region. “Peak in starting current is very complicated, and these kind of projects require a lot more effort and skill than ordinary projects,” says El Naggar. As for the market conditions in 2015, El Naggar says the rental market was very similar to the performance of other industries in Saudi Arabia affected by the declining oil prices. “We noticed that the major impact was in the oil & gas sectors and its related
“The UAE market remains a buyer’s market where most customers demand cut-off prices and there are constant challenges to the bottom line”
projects and client base. For other mega projects, such as the Haramain railway or the Holy Haram expansion, we did not notice any significant slowdowns.” In 2016, the oil & gas sector is set to continue to cut spending, though El Naggar notes that this may push some to look at renting instead of buying in order to reduce their capital investment. Peax is expecting strong growth in the housing and residential construction sector, partly due to recent changes in the regulations related to so-called white lands in the Saudi market, which will likely
force landowners to sell or develop land which they are holding. “In addition, the population growth in Saudi Arabia creates a substantial increase in the demand for housing each year.” REliAblE hAnds
Having an efficient servicing regime is one way to keep customers satisfied.
Based in the UAE, with operations there and in Saudi Arabia, Al Faris is one of the major players in the Gulf energy rental market. Well-known too for its extensive offering in the heavy lift sector, the energy division supplies turnkey temporary power solutions offering diesel generator sets along with
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accessories such as transformers, switchgear, distribution boards, power cables and fuel tanks, says Ramesh Achar, general manager of the energy division. With demand from across the industry, including utilities, oil & gas, construction, marine, manufacturing and events, Al Faris is proficient in providing customised solutions to its customers, says Achar. “We are pioneers in offering most efficient, quick and reliable solutions to any extreme critical application in harsh working conditions.” Recent projects include supporting the Saudi Electricity Company for peak shaving operation by providing 40MW base power at 33kV uninterrupted 24x7 for the duration of six months; provision of a 33MW power plant at 33kV for commissioning and operation for a poly silicon plant in Saudi Arabia for 10 months; and a 10MW emergency power plant at 13.8 kV, delivered and commissioned within five days after the failure of transformers in the customer’s captive power plant, renting their plant for six months. “We are also a preferred supplier for temporary power required for commissioning of Braka Nuclear Power Plant in the UAE. We are proud to be associated in providing the temporary power for the Burj Khalifa opening ceremony lighting up the prestigious tower,” says Achar. As for the company’s brand promise, Achar says that Al Faris stands out from other suppliers by offering state-ofthe-art, brand-new equipment built with the highest safety features, by a highly skilled engineering and maintenance team. “We provide the most fuel-efficient, worldrenowned Cummins brand diesel generator sets in compact box designs with a smaller footprint. As far as the main advantages for customers to prefer renting over buying –
to avoid capital expenses, inventory control of parts, right equipment for the job, 24x7 customer care, saving on storage, manpower for maintenance, reduction in downtime, no costly maintenance and repairs, saving disposal cost and equipment tracking.” Achar says market performance in 2015 was relatively good. “Having said that, the UAE market still remains a buyer’s market where most customers demand cut-off prices and there are constant challenges to the bottom line.” An additional issue is that collection of due payments from customers remains a major task “which is getting harder day by day due to unprecedented delays”. Nevertheless, the outlook remains optimistic.
Despite the low oil prices, growth is still expected in many markets by rental companies.
“In 2015, the KSA market was upbeat and we have enjoyed healthy results. In the UAE, with the 2020 Expo preparations kicking in now, there is an upward trend in the local business activities, and we need to wait and watch and cautiously decide any new additional investments in 2016. We are continuing our investments in the Saudi market as we see an extended pattern of growth.” In the construction sector, Achar says the firm is seeing greater use of rental units in the industry. “However, this sector is not a most rewarding one since often value for money is not weighed in this segment.” The drop in oil price has certainly put pressure on the regional economies. Achar says a slowing trend is already being felt in the market across all sectors. “We are also aware of many major projects that are put on hold or shelved, which will definitely affect the business prospects in the coming years. This could turn out as an opportunity for rental companies, where the end user prefers rental over capital purchases for the essential and short-term projects which are ongoing. Service industries will continue maintaining their steady businesses, whereas there could be a serious dearth of orders for new equipment sales.” However, Al Faris is also picking growth in key sectors, such as the ongoing spend on infrastructure, while turnover in the oil & gas industry is also expected to be healthy due to shut-down maintenance activities during the period of low oil prices.
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GENERATORS FEBRUARY 2016
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Himoinsa has boosted its brand profile in the region, says Keith Webb, its regional general manager.
Forging ForwArd Despite obvious challenges this year, generator manufacturers remain confiDent about their prospects in 2016
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s the region continues to develop, diesel powered generators (and other combinations) are a vital part of the energy mix, whether for large installations or smaller applications such as construction. Nevertheless, the sector is facing some headwinds and 2015 was an economically challenging year, says Ahmed Hamdy, regional business line manager for Atlas Copco Portable Energy, Middle East and North Africa. “The weakening of oil prices has impacted the economic growth of the GCC, and has put pressure on many of our key segments. The business climate was very mixed.” Still, says Hamdy, some markets have managed to maintain momentum. “We saw strong developments in some countries in the Middle East. The UAE, Qatar and Kuwait stood strong and had strong developments. Egypt had also strong developing projects.” On a sector basis, Atlas Copco saw strong growth in the rental and construction business. “Both our generator and light tower business saw double-digit growth in 2015.” Keith Webb, general manager at Himoinsa Middle East, says 2015 was a good year. “We have seen our market share grow in all regions. Our brand awareness is higher than ever and we feel very positive about 2016 as well, despite the general caution in the market.” Himoinsa has been focused on expanding its brand recognition and making further headway into the all-important rental sector. Webb says the firm has “continued to go from strength to strength. It is a segment that is very important to Himoinsa, and it is a testament to our quality that so many rental companies find our equipment so attractive.” “Different markets demand different equipment, but we are supplying many larger Volvo powered machines as well as many Yanmar and Iveco solutions. Tower lights also continue to sell very well, with hundreds of Apollo 4006 variants being sold.”
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GENERATORS FEBRUARY 2016
lOOkiNG AhEAd
Ksa marKet forecast to grow While Saudi Arabia’s economy is set to undergo a transformation as policy makers accelerate efforts to diversify away from oil, the country’s power rental market is forecast to continue to grow at a compound annual growth rate (CAGR) of 12.6% during 2015-21, according to research firm 6Wresearch. Growth in the construction industry, an emerging manufacturing sector, rising electricity demand and the need to provide power to off-grid areas are spurring power rental market in Saudi Arabia, says Avishrant Mani, senior research analyst at the company. ”In Saudi Arabia, diesel generators have accounted for the majority of share in the overall power rental market. Easy availability and inexpensive diesel have poised the growth of diesel generators on rent in the country; however, in the forecast period, penetration of hybrid and gas-powered generators is exhibited. Government initiatives towards reducing carbon emissions are expected to boost the demand for these generators in the country. “Additionally, in Saudi Arabia’s
In 2014, Himoinsa launched several new products in the Middle East, including its Power Cube – a 500kW genset unit in a 10-foot box – and a new hybrid solution genset, which uses a renewable energy input, battery array and low-RPM engine to offer long working hours on a job-site. Buyers are now showing interest, says Webb. “The Cube is quite a specialised machine, fitting a niche. I’m pleased to say we have delivered the first machines to the market and we are hopeful that more will follow in 2016. The hybrid machine has found interest from the telecom market and we are in discussions now to place a trial machine in the UAE.” Himoinsa has also made efforts to communicate its special solutions and applications approach, along with its dealer partner FAMCO, which also offers rental solutions. Webb says this has resulted in many more enquiries for special projects. “We are delivering multi-megawatt solutions in the GCC and Africa, one of the most interesting at present being the Doha Festival City project, with five HTW1745 machines.” The HTW1745 is powered by a Mitsubishi engine, with a prime power rating of 1,736kVA, or 1,900kVA standby. Meanwhile, Atlas Copco used the region’s annual hot fixture – the Middle East Electricity (MEE) show – to launch a range of new Gesan generators and light towers. According to the company, the launch of
Atlas Copco’s large QAC 1250 was launched in 2011, and is one of its key models.
eight new units was the most ever by Altas Copco at a single show. Manufacturer Gesan, with a production and assembly facility in Zaragoza, Spain, was acquired by Atlas Copco in 2011. “Atlas Copco and Gesan offer a full range of generators for all kinds of applications. Gesan complements Atlas Copco’s generator business very well, both geographically and in terms of the value proposition,” explains Hamdy. The MEE launch included four different generator lines, from the QEP range – aircooled, portable generators available in both petrol and diesel versions in 3-14kVA power ratings – up to the newly completed Gesan Line industrial generators, the QIS range. This range has 18 50Hz models, from the QIS 10 (9kVA) to the QIS 830 (752kVA), and 18 60Hz versions, from the QIS 60 (70kVA) to the QIS 740 (849kVA), and is suited for sectors including data centres, health care, utilities, manufacturing, retail and recreation, and telecommunications. The new machines have certainly won approval from customers. “Within the Middle East, we have seen tremendous growth for Gesan in 2015, with a very well established distributor network in the region,” says Hamdy. With a large range of models, including the large QAC 1250, Atlas Copco relies on a dual channel model, with many of its large unit sales direct to customers rather than through distributors. Hamdy is quick
power rental market, utilities, oil & gas, construction and industrial applications are the major revenue generating segments and will remain key contributing segments through the forecast period,” says Mani. The low oil prices will certainly have some effect, according to Ravi Bhandari, a research associate at 6Wresearch. “Due to low crude oil prices, a short- to medium-term effect could be witnessed on power rental business in the country. This drop in oil prices may delay execution of government projects, to maintain the county’s cash reserves.” “In the forecast period, Saudi Arabia’s initiative to shift towards renewable resources to generate electricity can affect sourcing of diesel generators on rent, but growth will still be witnessed in oil & gas, construction sites and areas lacking a transmission and distribution network,” says Bhandari.
“Although 2016 looks challenging, we are expecting growth in many segments”
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GROwTh pATTERNS
spain’s himoinsa recorDs 15% growth Spanish power generation firm Himoinsa has reported a 15% growth in turnover for 2015. Sales in Europe, one of the company’s main markets, accounted for 37% of total turnover, followed by America with 26% and the Asia-Pacific region with 17%. Africa and the Middle East each accounted for 10% of sales. Himoinsa plans to build on its figures and markets in 2016 through its network of production centres and sales offices, and its distribution and service network in over 130 countries, it said in a statement. The company is currently
to highlight the Atlas Copco Services Middle East organisation, saying it “offers innovative product solutions, providing users with unsurpassed quality, increased performance, efficiency and lower overall cost of ownership. It is important that we contribute to large projects and provide the most innovative, efficient and reliable solutions to our customers.” In addition, the brand offers an “unrivalled after-sales structure through local regional depots to ensure that our machine population is fully supported”. The QAC 1250 was launched in 2011, a result of Atlas Copco’s focus on product innovation, with the brand annually spending 3% of total revenues on research and development. The main features of the QAC1250 stem from its engine, notes Hamdy. “The DNV certificate and the PMG alternator make an excellent combination for reliability and performance. Customers also benefit from the spillage-free wider frame, with integrated forklift pockets, and the rigid lifting beam with the eye aligned to the centre of gravity. The residential silencer is another core feature that perfectly suits the most demanding applications.” “In addition to unrivalled reliability, performance and reduced cost of ownership, the size and light weight of our generators lead to lower logistics costs and facilitates easier handling.” For Himoinsa, the big news in 2015 was the acquisition by Yanmar of a majority stake in the company. Billed as a formal alliance, the partnership will allow the two businesses to “use their expertise in product development and business operations
Middle East Electricity (MEE) is the major annual show for launching new products.
to strengthen distribution channels and deliver innovative solutions to customers worldwide”. Webb says there has been little impact on the day-to-day operations of Himoinsa in the Middle East. “We continue to market Yanmar and Himoinsa products independently. The strength of each brand means we can leverage both brands independently for the time being.” Nevertheless, the deal has been a huge benefit for Himoinsa, and customers will begin to see the results, he says. “The synergies of the two companies will yield some very significant benefits as the product lines merge and expand to cover the marketplace.” Looking ahead, Webb says that with dramatically increasing brand awareness, they’re counting on growth in all areas, including continued growth in the rental and projects market. Nevertheless, he is most optimistic about telecoms as the sector where Himoinsa can grab more market share, a reflection of the technical specifications of their machines. “The Yanmar engines are the most fuelefficient engines of their size – combine this with the extended maintenance interval options that we are offering now, and with the hybrid solution as well, and it is hard to resist.” Hamdy at Atlas Copco says that despite 2016 looking challenging, he is expecting growth in many segments. “Our focus on generators and light towers will enable us to increase our presence in the most buoyant sectors in the Middle East. Our wide range of equipment gives peace of mind to our customers by assuring them
developing new power generation systems and is designing new diesel and gas generators, as well as lighting towers, which will launch throughout this year. Some of these products will appear at major international trade fairs, such as Bauma in Germany and Middle East Electricity in Dubai. In addition to the growth in turnover, the company reported an increase in staff numbers in 2015. According to Himoinsa executive director Lydia Gracia, the company’s employee count has grown by over 11% over the last four years. The diesel genset manufacturer also recently signed an agreement with the Technical University of Cartagena (UPCT) to take on 20 industrial engineering students over the next five years, who will work in Himoinsa’s production centres in Spain, China, India, the US, France, Brazil and Argentina.
of reliable operation.” He says that whatever the market conditions, their company vision remains the same: “To be first in mind, first in choice.” “Customer service is very important, and we aim to continue increasing customer satisfaction and continuously improve our Net Promoter Score results. Our ambition is to continuously strengthen the sales organisation that exists within our customer centres and across our network of distributors, to meet and exceed customer expectations.”
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RENTALS FEBRUARY 2016
Time for renTAls To shine?
As contrActors ponder uncertAinties in the mArket this yeAr And AheAd, one evident trend is thAt rentAl compAnies seem set to see increAsed demAnd for kit on hire And leAse
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ll signs are that 2016 and 2017 will be tough years for contractors, as oil prices remain depressed. With lower incomes, governments are set to slow projects and look for lower costs, meaning tighter margins for contractors. Yet if there is a silver lining to this, it is that many in the industry have been here before, having witnessed contractions in the sector in the 80s, 90s and 00s. A difficult environment means firms may have to consolidate business around profitable sectors, take on work with lower margins to keep revenue flowing, and manage cash flow. This could mean extra business for equipment rental companies in the Gulf. However, if the drive to preserve cash pushes more companies to rent or lease, it will be no more than an acceleration of an existing trend. The share of equipment being rented or leased has been growing steadily since the market drop in 2009, with more and more contractors looking to rentals to bolster their fleet and boost equipment during the peak periods of activity on a project. The rise of rentals has been evident in all sectors of the industry – earth-moving equipment, mobile cranes and compact equipment. Most large equipment dealers have added large rental or lease offerings, blurring the line between renting and ownership: fleet owners can choose to rent or lease initially, with an option to buy down the track. It’s not only cash flow preservation and peak shaving driving the increase in rentals: visas for construction workers are a problem in some markets, especially Qatar and Saudi Arabia, and skilled operators are also in short supply. That has led to heavy demand for machines to be supplied with trained operators, especially in Qatar. Nixon Hire operates in the UK and in Qatar, where it operates as a joint venture with local dealer Q-Fab. Speaking with CMME at the end of 2015, joint managing director Graham Nixon said that the year had gone “absolutely fantastic”, though he noted that collecting cash remained an ongoing struggle. “The business is there, we’ve got the infrastructure there and equipment, everything is set
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Nixon Hire’s stand at the outdoor section of The Big 5 in Dubai, held in November.
“Now all our equipment is on hire, and utilisation is very high. Prices are there, it’s debt which is the issue”
up right, the [only problem] is just literally collecting cash.” In a previous interview, Nixon commented that obtaining skilled operators to hire out along with the machines had been an issue. However, that was swiftly overcome with an influx of new staff. Operators were hired from Nepal, and the necessary bureaucracy and paperwork was dealt with to acquire them licences. That has boosted their staff count to 46, the majority of whom are operators who are “fully trained on all of our equipment”. In Qatar, Nixon Hire has a broad range of equipment and plant available, from excavators to compact machines to general plant, including 150-200 chemical toilets, 20 JCB telehandlers and large 20t excavators. Much of the equipment is brought secondhand from the UK. Their machines are now working on top-tier projects such as the metro and orbital roads – on the high-profile Orbital Highway Project in Al Wakrah last year, Nixon Hire supplied 15 of its 20t Kobelco SK210 excavators. Much of Nixon’s equipment is brought second-hand from the UK, which means a line-up that offers more compact equipment than is ordinarily found in a rental fleet. Nixon says this has served them well. “Because everyone in Qatar mainly seems to offer large equipment, we fit a niche market with some of the smaller equipment we offer. We’ve brought in smaller excavators which can be used in the [metro] tunnels with breakers on and chisel away, which has been a great product for us.” Nevertheless, despite the strong demand for hires, the lack of returning cash flow is difficult for a firm with a large amount of capital tied up in its fleet, notes Nixon. “Now all our equipment is on hire, and utilisation is very high. Prices are there, it’s debt which is the issue.” Many contractors blame slow payments from developers, he adds. However, excitement around the World Cup has brought in many international contractors, and there is a danger that some may do work for a year or two and then exit, leaving behind unpaid debts. Collecting payments isn’t a problem exclusive to Qatar. Daryl G. Gaskins is general manager, Middle East for Hertz Equipment Rental Corporation (HERC), which opened a branch in Doha in March 2015, adding to its extensive network in Saudi Arabia. He told CMME that in regards to payment terms, “the challenge is not specific to Qatar”. Since setting up shop in Doha, HERC has worked to identify the demands of the market, including
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RENTALS FEBRUARY 2016
RAw mATERiALS
QAtAr’s Qpmc signs 20m tonne AggregAte deAls The Qatar Primary Materials Company (QPMC) has signed four new agreements for the supply of about 20 million tonnes of gabbro and limestone aggregates over the next three years. The deals were signed at the end of 2015, and are meant to ensure continuous availability and price stability of aggregates for Qatar’s burgeoning construction sector, QPMC said in a statement. The agreements, which will be implemented early this year, were inked with The Gate Primary Materials, Continental Trading Company, Qatar Engineering Alliance Co and Al Baida Technical Services. The procured aggregates will be stored in QPMC-owned facilities in Lusail, Mesaieed and Ras Laffan,
requests to supply operators, generally for material handling categories. “In response, we have added some operators to our staff and continue to evaluate customer requirements daily. Our focus is to grow our partnerships with clients by developing relationships at all levels within their organisations. Understanding the customer’s internal requirements allows us to eliminate wasted time and effort, which helps shorten the period from rental request to invoice payment.” Gaskins says that Qatar was the next logical geographic choice in the firm’s ongoing development of key markets in the Middle East, following its success in Saudi Arabia, where it has branches in the main regions. “We have seen steady growth in Qatar in line with our projections for 2015, and our expectations based on current metrics are that the market will continue to rapidly develop through 2016 and beyond.” In Saudi Arabia in 2015, HERC’s approach to growth was based around expanding its service capabilities, the power programmes and the operational effectiveness of its current locations, says Gaskin. He says that their diverse fleet and service capability are at the top of the list. “Our locations offer the highest quality brands of late model fleet in every market we serve. We couple that with vendor-trained technicians to maintain and repair units, to maximise up time and productivity. Our fleet mix includes material handling, aerial, compressors, welders, tower lights, power, earthmoving and more, allowing a customer to consolidate equipment requirements.” Aerial work equipment and power generation are the most popular categories.
HERC opened a branch in Doha last March, building on its strong presence in the Saudi Arabian market.
“Our ability to offer these machines to contractors eliminates their need for the required capital investment, logistics, service and storage capabilities that are all required as part of equipment ownership.” Gaskins believes that the current uncertainty in the construction market regarding ongoing investment in projects in Saudi Arabia in 2016 will continue to push contractors towards the rental option. “Having a ‘best in class’ rental provider as an option to equipment purchase will allow the customer the maximum amount of flexibility to meet the shifting demand within their market.”
ensuring accessibility of materials in the north, south and the capital city of Doha. The materials will be imported from Oman and the UAE via private Qatari companies with quarries overseas, said QPMC CEO, Eng Eisa Al-Hammadi. Continental Trading Company, Qatar Engineering Alliance Co and Al Baida Technical Services will supply the aggregates from Oman, and Al Bawaba and The Gate Primary Materials will provide the materials from the UAE.
for free.
Showroom Doha - Industrial Area: Main Industrial Area Road. T : 44638804 F: 44602440 E: heavyequipment@jaidah.com.qa
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Parts Doha-Industrial Area: Gate 69, Al Wakalat Street. T: 44638854 F: 44606290 E: heparts@jaidah.com.qa
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Quick Service & Parts Al Khor Infront of Al Khor Mall T: 44170388 F: 44170351
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TECHNOLOGY FEBRUARY 2016
Inventory control
Radio tRacking of equipment and attachments is an efficient and cost-effective way to keep tRack of youR assets
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s many in the construction industry can probably attest, keeping track of building materials, equipment and work tools on-site can come with its fair share of challenges. Radio-frequency identification (RFID) technology, however, can offer a solution to this problem, enabling contractors and site managers to better track and manage their assets, many of which are considerably high-value items. Canada-based Intelliwave Technologies saw an opportunity in the market when major engineering, procuring and construction (EPC) firms often faced issues keeping track of materials required to build facilities they were working on. “If you don’t have your materials, you can’t build your facility according to the schedule,” says Dale Beard, CEO and co-founder of the Alberta-based firm, which specialises in providing RFID and GPS materials tracking solutions for large industrial construction projects. Delays cost time and money, and therefore incentivise firms to try to find an alternative that helps them manage assets more efficiently. Enter SiteSense, a solution offered by the firm that combines sensor tags (barcode, RFID and GPS), readers, mobile devices and web-based software and support services. SiteSense provides construction firms visibility of their assets, like materials or equipment, from suppliers to project-site warehouse and finally into installation. Typically, Intelliwave Technologies works with suppliers, vendors or fabricators and attaches sensors to the equipment or the fabricated goods, Beard says. “As soon as it becomes visible on our system, we start tracking it and tracing it. When it gets to the project site, we usually have automated infrastructure to track materials as they move from one location to another.” Materials tracked could be anything from pipe spools to structural steel. “In some cases, we track consumables or some of the bulk items as well, depending on what they are.” As far as equipment tracking is concerned, Beard says there are normally two categories of machinery: manned and non-manned. Non-manned typically refers to equipment like
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Radio-frequency identification (RFID) technology allows users to track the location of inventory.
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TECHNOLOGY FEBRUARY 2016
“Quite often, if you talk to a plant manager, he’ll think he has three excavator buckets sitting in his yard. But when he goes out and checks, those buckets won’t be there” light stands, generators and welders, while manned equipment includes cranes, trucks and so on. Understandably, non-manned and smaller equipment is much harder to keep track of, and is usually tracked with RFID or in some cases GPS, he explains. Manned equipment, on the other hand, is tracked more for maintenance or safety purposes, and not generally for improving efficiency and productivity on-site. US-based Trimble also offers a solution to enable construction firms to quickly and easily track and locate equipment in real time. The RFID tracking solution was introduced about 12-18 months ago and is yet to come to the Middle East, says Andrew Caldwell, regional manager, Trimble Civil Engineering and Construction Division – UK, Ireland, Africa and Middle East. The firm, however, plans to bring it to the region over the next few months, likely by the first quarter of this year. It goes without saying that the most obvious benefit for contractors and
equipment managers is inventory management, notes John Taylor, chief operating officer at Sitech Gulf – the distributor for Trimble machine control systems for heavy equipment, operating in all of the GCC except Saudi Arabia. “Quite often, if you talk to a plant manager, he’ll think he has three excavator buckets sitting in his yard. But when he goes out and checks, those buckets won’t be there yet, and he’ll have no idea where they are.” This issue can be resolved by installing sensors on the machinery or tools to be tracked, as well as on the gate of the site, so that a plant owner can locate pieces of equipment when required, and also know when they enter or leave the yard, Taylor explains. In case a piece of equipment is misplaced, a site manager can walk around with a handheld reader that can help him locate it. “It’s a good control method for lost assets.” Another key advantage of using RFID solutions is in maintaining assets, Caldwell notes. Trimble offers inspection software
Keeping track of expensive attachments can ensure site productivity isn’t affected by unavailable assets.
that works in conjunction with RFID, and can be installed on a tablet, iPhone or Android phone and given to a maintenance inspection team. “You can have pre-designed inspection checks on the device, so that when an engineer goes out to do a test on a multi-grader or a bulldozer, he has a readymade checklist that he goes through and he ticks it off.” The maintenance team can visually inspect assets, take photographs to document issues, store inspection data and create reports with the software. This helps ensure equipment and maintenance managers have current information for health and safety standards, auditing purposes and scheduling preventative maintenance. The inspection data can be stored in a centralised database and accessed across multiple sites, reducing reliance on paperwork. Although RFID has been around for a long time, its use in construction applications has been relatively recent. But even with the potential benefits it offers, there is still a long way to go in terms of educating the
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market, Caldwell and Taylor note. “There will be a certain amount of education that’s required to actually justify the investment, but it’s a very simple calculation,” Caldwell says. “Most organisations have experienced first-hand how much kit goes astray. They need it urgently for another project and they end up not knowing where to find it, so they have to go purchase another one. Therefore, it’s really a cost-saving exercise in inventory management.” Considering that the construction industry in the Middle East is usually slow to catch on to technology in general, Taylor anticipates that it will take a while for the market to warm up to the idea of using RFID on projects. There is also the issue of up-front cost versus long-term savings, where customers only think about the initial investment and don’t consider the time and money they could save by not having to manually locate assets. “If you install either an RFID or GPS tracker on some of these large assets, you know exactly where it is at any time. If you lost a gen-set because it’s sitting on a project you did two years ago and nobody went and picked it up, you have no idea where it is.” For a concrete example of how time can be saved with RFID solutions, Beard recounts a case study where such savings were calculated. “It took 36 minutes on average to find each piece that was not tracked with RFID. The ones that were tracked with RFID were about four minutes per piece.”
Factoring in the thousands of tools or pieces of equipment that may be required on a job-site, the potential for savings is enormous, he notes. Even though there’s an up-front cost associated with deploying RFID, it’s not that large compared to how expensive the equipment on-site usually is, Taylor says. “You lose so many tools every year on job-sites. Overcoming the technology roadblocks here in this region is simply just
On busy job-sites, losing tools or attachments can be a common experience.
an education process, and that’s what we’re trying to do here at Sitech.” If a contractor does decide to deploy assettracking solutions on a project, Sitech first has a discussion with his team to determine issues which frequently recur, such as whether equipment is frequently misplaced, and if so, what kind of equipment. For instance, a firm that uses large excavators for port work may not have problems with their big machines but may have a hard time keeping track of their excavator buckets. “In this case, they can put an RFID tag on each one of those buckets. They can create geo-fences around their project and the yard where the equipment is stored, and then they’ll be able to track these assets wherever they’re actually at.” While Sitech will offer support and recommendations on what kind of assettracking solution will serve the customer’s needs best, a customer is free to set it up the way it likes. “We would recommend assigning a name to each asset. So you can scroll through a list of assets that you’re looking for, select it, and then it will tell you the location of it, or help you find it if you’re in the yard itself.” RFID tags are available for machinery from smaller, handheld tools like impact wrenches all the way up to the bigger machinery. “It really depends on the customer’s needs, what issues they’re having, what kind of equipment, etc, and then we can assess and see if the RFID solution is better, or maybe they need to go for an asset-tracking GPS solution.”
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R E W O P W A R EED TO N U O Y G IN EVERY TH
KNOW
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EW P TOP 10: M iP s s a f ET y T
44_NEW RELEasEs
lift erate your How to op fely. platform sa
The latest releases from the world of construction machinery.
52_40t PuNch Caterpillar’s 340D2 L is a true 40-tonne machine.
56_siNkhOLE sTOP New trouble for TBM Bertha on its Seattle job-site.
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NEW RELEASES FEBRUARY 2016
Two new BoBcaT Telehandlers Why get it? Improved operatIng parameters Bobcat has launched two new telehandlers aimed at the construction and rental industries, the 13m T35130S and 14m T35140S. Both offer 3.5t maximum lift capacity. The introduction of the new 13m and 14m models follows on from the launch of the new Bobcat 10m, 12m, 14m and 18m lift height telescopic handlers over the last 18 months. While they have a simpler design intended to meet the needs of
rental businesses, the new T35130S and T35140S telehandlers still offer many of the advantages of the new generation models. Particular attention has been paid to aspects such as the protection of sensitive parts and intuitive, safe operation to meet the needs of rental users. The easy-to-use compact stabilisers ensure that the full capabilities of all the new telescopic handlers can be used in the most confined working areas and close to walls, meaning minimal loss of reach. As in other new generation machines, the T35130S and T35140S telehandlers offer advanced features such as the new panoramic cab, which has a large parabolic windscreen providing panoramic visibility, especially when handling loads at height. In the cab, there is a new dashboard with digital display
and intuitive controls including a joystick with integrated forward/reverse (FNR) control for improved productivity and safety. The working envelope for the T35130S telehandler has a maximum lift height of 12.55m and a maximum forward reach of 8.6m. The Bobcat T35140S telehandler has a maximum lift height of 13.6m and a maximum forward reach of 9.8m. SPECIFICATIONS
t35140s Max lifting capacity: 3,500kg Max lifting height: 13,600mm Max horizontal reach: 9,800mm Max travel speed: 30km/h
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new lighT Towers from ac Why get it? Improved durabIlIty and transportatIon
shanTui’s new dozer Why get it? a dozer specced for the desert Chinese earth-moving equipment manufacturer Shantui has launched its new SD32DQ ‘desert type’ bulldozer into the Middle East markets. An order for 10 units was received by the OEM, the first order of its type globally. The SD32DQ is a variant product designed and customised by Shantui Dubai Branch and Shantui R&D centre to meet the specific needs of Middle East clients. Based on their needs, this machine is suitable for heavy load working, as it has been equipped with an imported Cummins engine that greatly boosts engine performance and output power. The engine air filter, outfitted with an US-made Syclon pre-cleaner, is sealed to improve filtering and decrease the possibility of abrasion. An enlarged water tank, along with a heat-resistant tube and mechanical seal, has increased the SD32DQ’s heat dissipation potential by 30%. Other features include a heavy-duty straighttilt blade and lubrication type extended track, improving the machine’s working efficiency and prolonging its life-span. Last year, Shantui’s Dubai branch began operating a localisation marketing strategy in product customisation, spare part supply and service improvement. The sale of 10 units of the SD32DQ is affirmation of this process, said the company.
Atlas Copco has launched a new range of light towers, the HiLight V4 and V5+. The light towers include HardHat canopy as standard, ensuring protection of internal parts. This range of light towers is intended to provide construction firms, outdoor event organisers and other industrial users with a dynamic set of lighting options to address all efficiency and safety requirements, while retaining robust build quality and compact size. The HiLight V4 fits within the 4,000W metal-halide light tower segment, while the HiLight V5+ is a premium model incorporating LED lighting technology and increased fuel efficiency. The V5+ offers significant fuel savings of up to 60% when compared to the typical fuel consumption of 6kW metal halide solution. The V4 model can illuminate an area of 4,000sqm, and the V5+ can cover approximately 5,000sqm with an average of 20 lux. The LED lamps in the latter model are designed for both portability and performance, and heavy-duty floodlights benefit from high ingress protection (IP) and impact protection (IK) ratings. In addition, LED lamps offer users higher durability without any deterioration in lux level. “Several years ago, a light tower could be considered as a simple commodity product with limited life expectancy,” said Sergio Salvador, product marketing manager for the Atlas Copco range of light towers. “Today, however, we can offer a new level of
durability and value with a multitude of options for customers and a clear value proposition that fits with their needs. No longer do buyers need to compromise by settling for a one-size-fits-all solution.” The extended safety features give users complete peace of mind, even in the most demanding conditions. The light towers can be transported with their masts in a vertical position, enabling safer transportation and installation. As a result, it is possible to transport up to 20 units on a single truck, eliminating the time-consuming and costly problem of bulbs being broken during the shipping process.
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NEW RELEASES FEBRUARY 2016
new paver feeders from Bomag Why get it? hIgh output and compact desIgn German manufacturer BOMAG has revealed details of a new paver feeder, the BMF 2500, which will be officially launched at Bauma in April. At the show, the BMF 2500 model will be on display with a medium-length fixed belt. Designed to produce uniform and constant delivery of the mix to the asphalt paver, which reduces paving times and improves the quality of finished work, the BMF 2500 feeder will be available in a series with three variants. Features of the new feeder are its high output and compact design. Theoretical output is 4,000t/h, which means the unit can handle a 27t lorry load of crushed rock, sand or asphalt in only 35 seconds. The
vehicle width of only 2.55 m is also narrow enough for transport without a special permit. EcoMode reduces the engine speed depending on job requirements, saving fuel. The conveyor belt on the feeder has a width of 1.2m and gives optimum material flow with minimal segregation. In addition, the rubber belt is mounted on metal struts. These prevent the belt from stretching with hot asphalt. Retensioning the belt is no longer necessary, and material feeding becomes safer. The BMF 2500 has a large material hopper with individually controllable wings for quick discharge and slewing bumper rollers to safely dock the supply truck. Distance sensors allow it to be operated fully automatically. Automatic steering using a guide wire is available as an option. The machine stays on course while the operator concentrates on the delivery truck. The seat can be swivelled out by 90 degrees, providing clear visibility to the front and back. A second station for an operator at ground level is on the side wall. A weather proofed laptop docking station is also provided.
Tadano’s new 50-Tonner Why get it? hIghly manoeuvrable rough terraIn crane Tadano has launched a new 50t rough terrain crane, which will be sold in the Middle East as the GR-500EXS. It boasts a 50t capacity with a 33m four-section boom and compact carrier. The crane is designed for performance in confined job-sites in urban areas. Overall features include easy maintenance and high performance. The crane has a compact carrier that minimises the setup space necessary at a job-site. Its overall width is less than 3m, which is efficient for manoeuvrability in narrow spaces. Improved carrier mobility is another draw: the maximum speed of the GR500EXS is 44km/h, which is better than competitor products in the same class, according to Tadano. In addition, it can travel without stopping for cooling, important for large jobsites like mega-sized mining sites. SPECIFICATIONS
gr-500eXs Crane capacity: 50t x 2.5m Max lifting height with boom: 33.5m Max lifting height with jib: 45.9m Max load radius with boom: 30.5m Max load radius with jib: 40.0m
Al-Qahtani Vehicle & Machinery Co. Tariq Al-Qahtani & Brothers
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01 train your Staff Ensure that staff are well trained in the general aspects of operating the category of MEWP they work with, and provide machine-specific training for new machines on a jobsite. IPAF offers operator training in the Middle East.
02 Select the right machine for the job Whether it’s height, weight or another consideration on a job-site, selecting the right machine is essential for safety and productivity. Whether you’re relying on your company’s internal fleet or a rental firm, it’s important that the MEWP be selected by someone familiar with the lift requirements, and with good working knowledge of the machine options – even if this means renting a more expensive machine.
: n e T p To s p i T y T e f a s MeWp ment e l e l a i t St eSSen o m e h t g work S n i t a v e l e Safety i mobile a g n i t a r e in the n o of ope y r e v e (mewp). m r o f t a pl to play e l o r a S ha induStry
check for hazardS Hazards on a job-site come in many shapes and forms, whether it’s uneven ground, obstacles at height or high-voltage lines. Operators should be thoroughly briefed on hazards before starting a job, with a work plan in place to avoid them.
ConduCCTks he ach day, spoT-inC w g ork e
rt Before sta k of the spot-chec t c issues condu a ck for any e h c to e ance, machin ir perform a p im ld u that co damage fluid leaks, including ay o r previous d caused the hich w ated tyres, under-infl . ility affect stab
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toP ten FEBRUARY 2016
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fully extend outriggerS When present, outriggers are an essential element of machine stability and need to be fully extended for correct application. Ensure that they’re on firm ground, with plates that distribute pressure evenly.
enSure baSket iS comPliant Entrapment is a major safety hazard – a trapped operator can be pushed onto the controls, which increases the chance of the vehicle overturning. Make sure the work platform is fitted with effective guard rails and toe boards. Don’t modify the basket other than with OEMapproved modifications, and avoid placing items in the basket which could prevent it working as intended.
serviCees MaChinrly propueld be regularly
harneSS uP Falling from height is one of the leading causes of fatalities and injuries in the MEWP industry, so always ensure operators use the correct personal protection equipment (PPE). Correct use of the harness is among the most important.
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08
sho All MEWPs nsible y the respo b serviced nufacturer e with ma n li in t, n e cludes ag ons. This in s specificati spare part -supplied M E O g rt n a p si u t the correc and using t a ny u o h it w ce in each pla could ns, which substitutio rmance alter perfo stics. characteri
learn from miStakeS When mistakes do happen, it’s important to use them as learning moments. Avoid the temptation to simply not report them. Smaller mistakes, if left unchecked, can lead to larger accidents, resulting in injury or even death.
10 follow oem inStructionS Nobody knows the operating parameters and service requirements of a particular MEWP better than the company which built it. Follow the OEM’s guide for any machine you own, and check for updated versions.
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EXCAVATORS FEBRUARY 2016
The excavator meets 40-tonne tender requirements.
Packing a 40-tonne Punch Caterpillar’s 340D2 l is a true 40-tonne maChine, DesigneD with stability, visibility anD larger buCket CapaCity than its preDeCessor
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A
40-tonne hydraulic excavator, the Caterpillar 340D2 L is targeted at production applications including in quarries and in civil construction. The predecessors of the machine stretch back to 1997, when the 330B L series excavator was launched, with the HDHW (‘heavy duty high wide’) suffix. This was followed by the C series in 2001, and the D series in 2005. In 2008, the 330D L migrated to become the 336D L, and then in 2011 the 38.1-tonne 340D L was launched. The 340D2 L was then launched in mid2014, and is a heavier machine, weighing in at 40.3t. Alexandre Favero, HEX product application specialist for Africa and Middle-East at Caterpillar S.A.R.L, in an interview with CMME, describes it as a robust but more productive machine. The major change for the machine is the operating weight. “Now the 340D2 L is a real 40-tonne machine,” says Favero, noting that the machine complies with 40t tender requirements. In the original transition from the 336D L to the 340D L, major improvements to durability that were made included enhanced plate thickness of its heavy-duty car body, with plate thickness increasing between 37% and 70%, for a tougher structure. The swing bearing was strengthened with six additional bolts and 20% increased bolt length for better retention and longer bolt life. Meanwhile, the carrier roller was bolstered with dual support and a wider shaft diameter. In practice, this meant a higher ground clearance for the machine, greater cab height for better operator visibility, and with greater clearance between the upper frame and the undercarriage, less chance of upper frame damage. A widened track gauge increased stability over the side. Those improvements have now been leveraged in the new 340D2 L for greater productivity. In terms of applications, the 340D2 L is conceived for quarry production, such as truck loading, where it benefits from stability over the side, visibility with the higher cab and durability of the undercarriage; crusher feeding, where it benefits from stability while swinging, visibility in the crusher
and high ground clearance; it is also ideal for trenching, such as sewer and water works. The new 340D2 L has nearly two tonnes of extra weight added. That means that in mass excavation mode, with shorter, heavyduty reinforced boom (6.18m) and stick (2.15-2.55m), the 340D2 L with an 8,450kg counterweight can be fitted with much larger heavy-duty buckets (2.60m³ and 2.69m³), for greater productivity (the old 340D L had a maximum bucket capacity of 2.36m³). On the standard boom and stick configuration, the maximum bucket size is 2.36m³. Good visibility and stability help improve operator performance, and can help average operators in the field get closer to the maximum possible productivity. “The operator feels safer, so he works faster,” says Favero. “They have more chance to use the full power of the machine. More stability and more visibility gives you real faster cycle times.” Other cost-saving efforts on the new 340D2 L include lower fuel consumption, with consumption decreased by up to 7%. This comes about through improved hydraulics, which in turn allows the engine to run at a lower RPM (the machine is optimised to run at 1700RPM). Fuel savings on the 340D2 L result from an isochronous engine speed and torque control system that reduces engine speed during no-load or light-load conditions, as well as from a new electric pressure sensor in the implement hydraulic system that can detect pump load demand precisely to improve system efficiency. This focus on reducing fuel consumption is applied to the entire Cat D2Series
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EXCAVATORS FEBRUARY 2016
“The operator feels safer, so he works faster. They have more chance to use the full power of the machine” and to the 374F and 390F models. Relative low fuel cost per litre in the Middle East can mislead customers, as the total annual fuel bill amounts to thousands of dollars. Fuel consumption should be one of the critical factors when looking at purchasing equipment. In terms of its hydraulic system, the 340D2 L operates at a relief pressure of 35,000kPa and produces maximum flow of 530L/min in order to be able to handle a variety of work tools. High- and medium-pressure control circuits are available to facilitate tool use. The operator can choose between two working modes, High Hydraulic Power or Economy, to match machine performance to the application. For further fuel savings and overall operating efficiency, the 340D2 L uses boom and stick regeneration circuits that significantly reduce the load on the hydraulic pumps. At the same time as efficiency was boosted, the 340D2 L has a triple-filter fuel filtration system, designed to cope with the dirtier diesel in use in some markets in the Middle East and in other lesser regulated countries (LRCs). Filter-service intervals are currently the same and the number of filters has increased, with the intention of prolonging the life of other fuel system components. And so while the additional filter means a higher cost for customers on this particular item, Favero stresses that this is balanced against greater savings overall. Whereas in the case of the new 320D2 L, the decision was made to reduce the number of fuel filters – at the same time introducing a mechanical fuel-injected engine, rather than electronic, which is less affected by impurities in the diesel – customers buying the larger 340D2
The excavator features excellent stability and cab positioning, meaning that operators will work faster and harder.
L are less swayed by the slightly higher filter maintenance cost, given that the machine sits at a higher price point and is designed for more production-focused applications. Building the 340D2 L with a mechanically injected engine wasn’t an option for the larger machine, since the drop in fuel efficiency would be considerable (in the case of the 320D2 L, the drop in engine fuel efficiency was able to be counteracted by redesigning its mechanical operations: in fact the new machine had fuel savings of around 3%). An electric priming pump simplifies filter changes by eliminating the need to fill filters with fuel before installation and possibly introducing contamination. The operator cab has a 40% larger display
on the in-cab LCD interface, while resolution has been increased 4x. To improve operator comfort, viscous rubber mounts that attach the cab shell to the frame dampen vibration and sound. In addition, thick steel tubing along the bottom perimeter of the cab resists structural fatigue and adds to the 340D2 L’s overall durability. The cab design provides excellent visibility for the operator, and visibility is further enhanced by affixing glass directly to the cab, eliminating the need for frames. Pillar-mounted wipers also contribute to better visibility. When it comes to choosing between the 340D2 L and other machines in neighbouring weight classes – the 336D2 L and 349D2 L – Favero says that customers should leverage dealer expertise to decide which model is the best. Demonstrations can also help customers familiarise themselves with the 340D2 L, if it’s a machine they haven’t previously encountered. Favero notes that the 340D2 L is still a relatively new model in the Middle East and that between the 336D2 L and the 349D2 L, there is room for a 40t excavator.
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SPECIFICATIONS
340D2 l
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Engine: Cat C9 ACERT Gross power: 200kW Operating weight: 40,270kg Maximum dig depth: 7,322mm Maximum forward reach: 11,084mm Hydraulic flow: 530L/min Hydraulic pressure: 35,000kPA
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One day I will architect the building of my dreams
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THE LAST WORD FEBRUARY 2016
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IVECO TRIUMPHS AT THE DAKAR 2016
3 IVECO in the top 5 Gerard de Rooy, the leader of the Petronas De Rooy Iveco team, is overall winner.
RSTAR
WE ECO PO
IV
#501
OOY D DE R GERAR rrallardona To Moisés odewald Darek R
FINAL RANKING: POS. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
DRIVER
De Rooy Mardeev Villag ra Stacey Van Genugten De Baar Nikolaev Valtr Ver sluis Pep Vila Roca Ardavichus Van den Heuvel
1st VEHICLE
Iveco Powerstar Kamaz Iveco Powerstar MAN Iveco Trakker Renault Trucks Kamaz Tatra MAN Iveco Trakker Tatra Scania
6 R #51 AKKE ENUGTEN R T O NG IVEC ON VA
TIME 44:42:03 45:52:30 46:22:58 47:05:04 47:13:02 47:46:10 48:21:26 48:36:33 48:39:55 49:37:07 49:43:09 49:57:44
ANT
impt van L Anton d r e an E Peter v
IVECO PO
WERSTA
FEDERIC
OV
R #514
ILLAGRA Jorge Pérez Companc Andrés M emi
3rd
Thanks to: , Xavi Colomé Roqueta and Marc Torres Sala , the fast service truck who finished 10th Pep Vila Roca Aleš Loprais , Ferrán Marco Alcayna and Bernard der Kinderen , who unfortunately abandoned during stage 5 The FPT team in Arbon who specially prepared Iveco’s Cursor 13 engines manufactured in Bourbon Lancy plant The whole team, sponsors, friends and supporters.
“I wish to dedicate our victory to my former co-pilot Jurgen Damen
who accidentally passed away last year” Gerard De Rooy
AFTER MAGELYS, COACH OF THE YEAR 2016 AND EUROCARGO, TRUCK OF THE YEAR 2016 IVECO TRIUMPHS AT THE DAKAR 2016, THE WORLD’S TOUGHEST RALLY.
5th