Construction Machinery ME

ISSUE 15 013 JANUARY 2

PUBLICATION LICENSED BY IMPZ

BAumA’s Big yEAr

What’s at stake for the event?

pumpEd in BAHrAin Al mahroos and putz primed

yOu cAn’T FAkE iT

The pitfalls of cutting corners

ONWARDs AND uPWARDs

OFF THE WALL How towers are climbing Plus: ACROss THE INDusTRY

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NEWs & VIEWs

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RAW POWER

*

CAsAblANCA

*

AND MORE

Contents

18 page 18

IS S U E 1 5 2013 JA N U A RY

BAUMA BOYCOTT

“The Japanese exhibitors resigned and didn’t participate because of the political issue.

They were fearful. Local security asked us to take care of the Japanese exhibitors. We couldn’t guarantee security.”

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Editorial Riding the fiscal elevator.

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

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NEwS aNalySiS Why Kobelco and CNH are going their separate ways.

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ExpErt opiNioN Building a future with a past

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why wE NEEd bauma CMME talks to the head of Bauma about the event’s big year.

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back to bahraiN Al Mahroos Group and Putzmeister are expecting big things from their moderately sized operation in Bahrain.

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Start of a bEautiful rElatioNShip Casablanca and France come together to create the first light transport system in Morocco.

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takiNg fakES apart Can you cut corners when it comes to fake and counterfeit parts and where do they come from? CMME investigates.

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Raw power

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40 NEW RELEASES ROUND-UP What’s hot in new machinery this month? Page 45 SECTOR ANALYSIS: STATICS TECHNOLOGY Taking a look back at the new cranes that were released in 2012. Page 49 TOP TEN TIPS Your guide to telling a fake part from the real. Page 54 SECTOR ANALYSIS: MINING AND QUARRYING Guide to the new equipment ready to get down and dirty.

Page 58 THE LAST WORD What’s behind Muhammed Bin Rashid City in Dubai?

Page

Editor’s Letter

PubliSher Dominic De SouSa GrOuP COO naDeem HooD ManaGinG DireCtOr RicHaRD JuDD eDiToRiaL GrOuP eDitOr STepHen wHiTe stephen@cpidubai.com +971 55 795 8740 DePuty eDitOr GaVin DaViDS gavin@cpidubai.com +971 4 440 9118 COntributinG eDitOrS cHaRLeS maRTin, meLanie minGaS

Riding the fiscal elevatoR

W

hile celebrating the close of 2012 and the start of 2013, I was speaking to a newcomer to the Gulf who had just arrived from the UK. “Really I would have been stupid not to have come over,” he said and amid the talk of fiscal cliffs and shrinking growth in other parts of the world it was easy to see his point.

To a certain degree we exist in a bubble in the Middle East construction sector. The celebrations in the US over the resolution of how it was going to tackle its fiscal cliff may have been an outpouring of relief, but as the Chinese news agency Xinhua was almost gleeful to state, the Republicans and Democrats have only managed to kick the can a little further down the road. The US could be facing a fiscal abyss, it said cheerily.

China enters 2013 looking at 7% growth, a figure that would make the Greek government treat itself to something special for the weekend, but way off the type of growth rates it needs to help the machinery sector stay profitable. Some observers warn that as the picture becomes ever more clearer of how its local governments spend their money – or more exactly lose money – then the construction industry faces even greater hardship. It could be the sort of 1-2 punch combo that forces consolidation in the market.

My time spent time with the head of Bauma China, (see Why we need Bauma, page 18) makes me suspect he is relieved that the show took place in 2012 and not 2013.

We’ve already seen manufacturers group the Middle East and Africa with Latin America and the CIS as a region that provides hope for the future. Saudi for instance – which will again be the most active market in 2013 – is accelerating its spending seeing a 50% increase year on year in the second half of 2012. Business Monitor International predicts the construction industry will see 5.6% growth over the next four years.

I’ll applaud the effort of Chinese industry to make the biggest wheel loader or crane as seen at Bauma China, but I would much prefer that they follow the example of Shantui and LiuGong, say, in making equipment that’s up to the job of working in the remote sites of southern regions of the Kingdom.

It occurs to me that we’ve often been sold short by the global industry in terms of ensuring we have the best equipment. Sometimes we’ve been derided as having a taste for less sophisticated kit and not interested in long term value.

maRKeTinG & aDVeRTiSinG PubliShinG DireCtOr RaZ iSLam raz@cpidubai.com +971 4 440 9129 COMMerCial DireCtOr micHaeL STanSFieLD michael@cpidubai.com +971 4 440 9128 MarKetinG ManaGer caRoLe mccaRTHY carolem@cpidubai.com +971 4 440 9157 DeSiGn JuniOr GraPhiC DeSiGner peRciVaL manaLaYSaY SeniOr GraPhiC DeSiGner ReBecca Teece rebecca@cpidubai.com +971 4 440 9168 ciRcuLaTion & pRoDucTion CirCulatiOn anD DiStributiOn ManaGer RocHeLLe aLmeiDa rochelle@cpidubai.com +971 4 368 1670 DatabaSe anD CirCulatiOn ManaGer RaJeeSH m rajeesh@cpidubai.com +971 4 440 9147 PrODuCtiOn ManaGer JameS p THaRian james@cpidubai.com +971 4 440 9146 DiGiTaL www.constructionmachineryme.com DiGital ServiCeS ManaGer TRiSTan TRoY maaGma Web DevelOPer JoeL aZcuna online@cpidubai.com +971 4 440 9100 puBLiSHeD BY

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

As much of the rest of the world flounders and customers are in short supply, maybe it’s time that you make sure you get the very best support out of your dealer’s suppliers and that they realise how important you are.

ISSUE 15 JANUARY 2013

PUBLICATION LICENSED BY IMPZ

BAUMA’S BIG YEAR

What’s at stake for the event?

PUMPED IN BAHRAIN Al Mahroos and Putz primed

YOU CAN’T FAKE IT

The pitfalls of cutting corners

Stephen White, Group Editor, CMME

4

CONSTRUCTION

MIDDLE EAST

January 2013

ONWARDS AND UPWARDS

OFF THE WALL How towers are climbing PLUS: ACROSS THE INDUSTRY

*

NEWS & VIEWS

*

RAW POWER

*

CASABLANCA

*

AND MORE

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

Please visit us at:

Construction Machinery Show Plot C004, Jeddah, Saudi, 14th-17th April, 2013 Hotline: Lily: 00966 56 2777472

News Round-Up

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

FIElD FOR BRAzIl DREAMS If there was a poll about the world’s most famous sport venue among football fans, or even among general sports fans, very few would name the “Jornalista Mário Filho” stadium. But high on the list would be without any doubt “Maracaná”, the name with which this stadium at Rio de Janeiro, Brazil, is popularly known.

Four 21 lC 400 tower cranes lead construction.

TATA HITACHI INDIA OP TArgeTs Me

The JV between Hitachi Construction Machinery and Tata Motors will use their Kharagpur plant to provide cheap equipment to the Middle East and Africa. Tata Hitachi Construction Machinery Company’s Kharagpur plant in West Bengal currently produces 300 units per annum with 2% going overseas.

The company says that the plant, which can produce excavators, dump trucks and wheel loaders, it has been operating well below its 6,000 capacity due to the slowdown in the global economy.

However the JV saus that markets like the Middle East and Africa could be useful markets for its machines.

Potential for exports could be as much as 15%. “We want the Kharagpur plant (in West Bengal’s West Midnapore district) to be gradually tuned to low-end cost effective products to be supplied to global markets especially developing countries,” Mitsuhiro Tabei, VP of Hitachi told local media.

“At present export to Bangladesh, Sri lanka and Nepal constitutes 2-3 percent of the total domestic business.

We are now looking to export to Africa and Middle East countries like Oman and increase the share of exports to 15 percent,” said Ranaveer Sinha, managing director of Tata Hitachi.

Volvo Construction Equipment wins Brand of The Year

V

olvo Construction Equipment, the Swedish machinery manufacturer, was announced as the inaugural winner of the Construction Machinery Middle East Brand of the Year award, at the Big Project Middle East Awards 2012 on Tuesday night at the Armani Hotel, Burj Khalifa, Dubai, UAE. The award caps a remarkable year for Volvo CE in the Middle East. The pioneering Swedish company brought the exciting Volvo Ocean Race to Abu Dhabi in January. Volvo has used the global event as a springboard for impressive growth in markets throughout the region and it continues to invest in the construction sector.

“We are absolutely thrilled and feel extremely honoured to receive this award,” said President of Volvo Construction Equipment Sales Region EMEA (Europe - Middle East - Africa)

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Tomas Kuta. “Innovation and quality have been at the heart of Volvo CE’s long history and I firmly believe will continue to shape us now and in the future.

“Many of the global icons in terms of infrastructure, multi-use developments and industrial structures are the result of inspirational vision and a genuine desire to improve society. I believe Volvo CE shares in these attributes as we continually look to develop products and support services that give more to our customers and hope for our future generations.

“I also feel this award recognises a key element of Volvo CE in that we strive to provide our customers with more efficient dealer support from a more extensive and qualified dealer network. In this regard I am extremely grateful to FAMCO, our dealer in the UAE and Saudi Arabia. The team there certainly share heavily in this

success and should feel extremely proud of what they’ve achieved.”

The award was accepted by Shahir El Essawy, business manager, Volvo CE and Paul Floyd, managing director of Al-Futtaim Auto and Machinery Company (FAMCO), and presented by CPI’s group editor Stephen White.

Floyd remarked at the ceremony: “As distributors [referring to Famco], we recognise the importance of a strong, global brand and the difference it makes in the minds of customers. We are proud to be associated with the Volvo brand and we look forward to strengthening it in the region.”

Company intelligenCe the Dubai bourse lost its biggest hope for recovery in 2013 with the cancellation of a $1.6bn initial public offering from al Habtoor group. it was slated for march or September on the nasdaq Dubai, however chairman KHalaf al Habtoor is said to have considered the price expectations for the ipo not high enough. Dubai stocks are presently selling on lowly multiples and so an ipo would have to also discount to these levels, effectively giving the group away for a bargain basement price. For the Dubai stock market it is a major blow, analysts say. tHe municipality of fujairaH has announced the construction of a full-fledged bachelor’s labour village for more tHan 35,000 worKers.the projects Department at the civic body “has charted out a complete plan for setting up the labour village in al Hail industrial zone, spread over an area of 32 hectares,” nawal yousouf al Hanaaei, director of the projects department and head of the buildings section at the municipality, said. the land, comprising 44 plots, was granted on lease by the municipality to developers and company owners. the areas of these properties range from 2,642sqm to 6,300sqm, she said. a ground-breaking ceremony was held on December 12, 2012 to mark the beginning of construction work on new medical centre (nmc) specialty Hospital in abu Dhabi. india’s larsen & toubro has been awarded the main construction contract.

tenDer upDateS

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development of wafra seef scHeme in Kuwait comprising a new food and entertainment destination offering patrons a gathering place where they can dine, meet and mingle, while enjoying the breathtaking views of the arabian coastline. contact wafra real estate (Kuwait) for details.

2

rayadah investment company is constructing towers, retail units and related service facilities with a total built-up area of 268,383m2. in riyadh. this project will be located on King fahd road in assahafa district of north riyadh in saudi arabia. it will be adjacent to proposed burj rafal tower and will cover a total site area of 30,000m2.

3

development of a multipurpose project comprising 11 mixed-use commercial, residential and administrative buildings, including associated facilities in the wilayat of bausher by public authority for social insurance (taminat) - oman. the commercial buildings constitute 30% of the project. implements within 30 months.

GENAVCO CELEBRATES 25% GROwTh ANd NEw ShANTui pARTNERShip iN duBAi Genavco, Juma Al Majid’s construction and equipment arm, says that the reaction of its new partnership with Shantui has been “beyond its expectations”.

Speaking at a special event to celebrate the company’s new partnership with Chinese earthmoving giant Shantui, Isam Abu Nabah, the president of Genavco revealed that 2012 had seen growth of 25% this year.

“We are driven by our ambitious plans for growth, expansion and providing superior after sales service,” he said.

“With the underlying vision of becoming top service providing partner of choice by the industry, Genavco was able to achieve 25% growth over the same period of last year, even further enhancing our market share in what remains a difficult climate.”

The Shantui deal boosts the company’s presence in a number of areas. Not just bulldozers - with Shantui dominates the Chinese industry with 65% market share - but also in other lines such as excavators in the 6t-40t classes, graders, and forklifts.

The parntership with Genavco provides Shantui with an established player in the market.

“The prime objective of Genavco and Shantui is to provide quality products backed by professional sales and after sales

support to meest and exceed customers’ expectations in the UAE construction industry.”

“We knew this partnership is set to be well received in the marketplace,” “but the early results have been beyond our expectations with a record number of inquiries being made so far,” added Abu Naba.

“And we are even more upbeat about the future with the revelation that three in four industry figures believe that project spending in the Middle East will increase next year,” he added. “According to a PWC survey , issued in December, the UAE is tipped to invest the most and massive government spending on infrastructure will be at the heart of the investment.

“Shantui’s line up has complemented our extensive product range and enhanced our ability to provide an even

more comprehensive range of solutions to our clients in the road construction, quarry & mining industries.”

Asif Sayeed Khan, Equipment Division Manager at Genavco said: “The prime objective of Genavco and Shantui is to provide quality products backed by professional sales and after-sales support to meet and exceed customers’ expectations in the UAE construction industry”.

Several models of construction models were unveiled at a Chinese themed event that took place last night at the Inter-Continental Hotel, Dubai Festival City, to officially commemorate the launch of Genavco’s partnership with Shantui.

The evening was hosted

by Genavco and attended by officials from both companies as well as 250 local, regional and international industry guests.

ContraCt finanCing will be a major issue in 2013 despite $159bn worth of ContraCts up for grabs $159bn worth of contracts will be awarded across the Middle East in 2013 – but the construction industry is struggling to raise the finance that will enable the fulfillment of those deals. project owners and contractors are scrambling for project financing as the banking sector in the region adopts new regulations, including the Basel iii code, and cuts back on long-term lending activity. project owners and contractors must explore other opportunities beyond traditional bank lending to ensure the realisation of the projects. Bigger contracts are pending as Qatar enters the next critical phase of its preparations to host FiFA world Cup in 2022, and to bid for the Summer Olympics in 2020.

Before the 2008 financial crisis government infrastructure projects in the Gulf Cooperation Council (GCC) were financed mainly through syndicated loans led for foreign banks. At the height of the crisis, the availability of project finance dried up while at the same time propelling debt costs upwards. Now with the Basel iii accord and new banking regulations, multi-currency loans

permit local banks to lend in local currencies, with new and tighter caps introduced in recent years. in addition to major regional banks, the gap in project financing is filled by credit agencies and the bond markets. The Basel iii accord seeks to ensure that banks have a minimum liquidity level and can’t go bust. it seeks to implement a series of minimum requirements to ensure the strength of the banking system. Members of the accord include Australia, Canada, China, hong Kong SAR, india, Japan, Mexico, Saudi Arabia, Singapore, South Africa and Switzerland. Seven others - Argentina, Brazil, the European union, indonesia, Korea, Russia, Turkey and the united States – are working towards final versions as quickly as possible.

Stefan ingves, Chairman of the Basel Committee and Governor of the Sveriges Riksbank, said: “while some jurisdictions have not been able to meet the planned start date, a large number will be ready to begin introducing the new capital requirements as planned on 1 January, 2013.”

CONSTRUCTION

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News Round-Up

Komatsu good news

Komatsu, which has been hit hard by a spending freezes in China, says that it is once again feeling optimstic about its fortunes in 2013 and production is up at plants.

MORE RECORD BREAKERS AT KHALIFA Morocco King and French PM oPen dubai-style traMway Thousands of people lined the streets last month to see King Muhammed VI of Morocco and French Prime Minister Jean-Marc Ayrault officially inaugurate Casablanca’s new tramway.

The 31km Casa Tramway, which features Citadis trains supplied by Dubai’s Al Sufouh’s tram designer Alstom, is the first tramway in Morocco.

Unusually, it also entered into public service along its entire route. Joining thousands of Casablanca residents and the King and French PM were Morocco’s Prime Minister Abdelilah Benkirane, the Wali of the Casablanca Region Mohamed Bousaid and the Mayor of Casablanca Mohamed Sajid.

Casa Transports - a public company in charge of Casablanca’s public transport – awarded a contract to Alstom for the supply of 74 Citadis trams in 2009.

In 2010, Casa Transports awarded Alstom two additional contracts for the installation of the line’s rail signalling and power supply systems.

The Citadis tramways were built

by Alstom Transport with operation and maintenance activities awarded on 13 July 2012 by the organising authority, Casa Transport, to a consortium headed by RATP Dev, a subsidiary of RATP Group, alongside Caisse de Dépôt et de Gestion du Maroc and Transinvest.

The new line and its 48 stops connect the city’s eastern and southeastern areas via the centre.

It is part of the city’s ongoing regeneration programme, which will see a major overhaul of its infrastructure and road construction to open up areas for commercial, residential and tourism development.

Casablanca’s first tramway line is scheduled to carry up to 255,000

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passengers per day by 2015. Alstom was awarded a 13-year maintenance contract for the Al Sufouh tramway in Dubai earlier this year where 11 Citadias will be in operation once the 10km track opens in 2014.

The planned transit time for the line running from Ennassim to Facultés is 63 minutes 30 seconds, and 69 minutes from Ennassim to Hay Hassani. Once technical adjustments are completed, traffic signals ensured and full compliance of the tram platform guaranteed, the average speed will reach 18.8 km per hour with a 75% priority rate at intersections.

The signalling system supplied and installed by Alstom ensures safety at line intersections. It also manages road crossings and gives the tramway priority, for a higher speed and greater safety.

This 31-km line, the longest line ever to be built in one project, links Casablanca’s East and South-West districts via the city centre, and calls at 48 stations. The Citadis trams are 65m-long double units and can accommodate up to 606 passengers.

They will carry up to 250,000 passengers daily. With its 12 side doors and its full low-floor concept, the Casablanca Citadis will provide easy access for everyone and make for a smooth flow of passengers. The design of Citadis was customised in order to achieve perfect integration into Casablanca’s architecture. The interior features Moroccan style motifs and colours. The air-conditioning, large tinted bay windows, wide aisles and information displays in French and Arabic were designed to provide optimal travel conditions.

Read more about the new Tramway in “A Future on Track” (on page 27).

With Abu Dhabi’s Khalifa Port set for its official launch on December the 12th, operator Abu Dhabi Ports Company has announced that it has ordered three more of the largest cranes in the world.

ADPC said that it has placed fresh orders with the ZPMC yard in Shanghai for three new Ship To Shore cranes. These cranes are amongst the largest in the world and will join the six other ZPMC STS cranes serving the semiautomated terminal at Khalifa Port. The cranes will become operational on March 1st, 2014.

BAUMA BOOM? Bauma China proved that the industry is resilient despite mounting pressures in the Chinese machinery market.

In addition, the company has ordered 12 new Automated Stacking Cranes for the container yard from Konecranes, suppliers of the currently operational 30 ASC cranes onsite.

The first six cranes are scheduled to be delivered in one year.

“I am thoroughly delighted to confirm these orders as they will help the container terminal turn around bigger volumes in the future.

The yard is nearly fully occupied at 70% of current capacity. It will be a fantastic sight to see not six but nine STS cranes towering above Khalifa Port,” said Joost Achterkamp, Terminal Area projects manager, Projects Unit, ADPC. The announcement comes in the wake of confirmation that Mina Zayed’s container traffic has now been moved across to the massive Khalifa Port, ahead of the original Q1,2013 deadline. Abu Dhabi Terminals will continue the TEU operation at Khalifa Port, as they did at Mina Zayed.

HH President Sheikh Khalifa bin Zayed al Nahyan inaugurated the port on Wednesday, 12 December, 2012.

HALF A MILLION AND COUNTING JCB marks the production of its half millionth backhoe loader – the machine that made the company famous around the world.

It’s time to haul in some huge savings.

With Shantui value.

The one sure way to achieve that is with a Shantui wheel loader. We make wheel loaders of all sizes and horsepower, and also offer various extension parts to tackle most challenges at the work site. No job is too big or complex for these beasts. All while keeping your costs low and profits higher. It’s the Shantui Way.

machinery products. The wheel loader is yet another example of how we are making our way down from the top of the food chain in construction machinery…SHANTUI VALUE WORKS FOR YOU.

The competition was hoping Shantui would stick with its market leading bulldozers, and leave well-enough alone.Too bad. Now, Shantui is making strong inroads into other construction

Check out our full-line of construction,

road and concrete machinery at: www.shantui.com

News Round-Up

Abu DhAbi ConsiDErs nEw builDing CoDE In consideration of the recent spate of fires in the UAE, Abu Dhabi is considering a new international standard building code, to take fire safety concerns into account.

The new code will bring conformity schemes for the types of materials used in doors and cladding for new buildings.

“We do expect those conformity schemes to be ready in the early part of next year,” Saeed Al Muhairi, executive director of Quality Infrastructure Services at the Abu Dhabi Quality and Conformity Council(QCC), said.

Abu Dhabi’s Department of Municipal Affairs (DMA) has already adopted the International Building Codes. The new unified Building Codes introduce a common and transparent set of regulations to govern all construction industry activities throughout Abu Dhabi Emirate.

Al Muhairi said that while initially it is going to be at an emirate level, the QCC will push for it to be the standard throughout the country.

He added that the implementation of such a code and set of standards will improve safety conditions in Abu Dhabi. “We want to make sure that the incidents we have registered in the history of Abu Dhabi and the UAE are not repeated,” he said.

MAKKAH CONTRACTORS FACING CEMENT CRISIS dubai mall x2 Emaar Properties said on it will soon commence expansion of the Dubai Mall last month.

Falling reserves of cement stock have triggered a crisis in Makkah, with the price of a single bag of cement reaching SAR20 on the black market, media reports have said.

Local contractors say that they fear that more than 300 construction projects will be suspended due to the shortage of cement in the Holy City. Meanwhile, other contractors have said that they have resorted to buying cement at higher prices

on the black market because they fear being slapped with heavy fines for not completing projects at the agreed-upon times.

Abdullah Al Saeedi, chairman of the Contractors Committee at the Makkah Chamber of Commerce and Industry (MCCI) said that the chamber planned to raise the issue with the Council of Saudi Chambers of Commerce and Industry to find an immediate solution.

GCC IS CATCHING up wITH dubAI’S CONSTRuCTION INduSTRy

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September 2011 January 2013

The rest of the GCC is making rapid strides in construction as countries try to catch up with the benchmarks set by Dubai, says Mohammed Al Rais, a leading construction expert.

“It’s a matter putting a process and system in place, so that at least the bureaucracy and the old way of doing things, managing projects, becomes a lot more streamlined,” he said.

Al Rais said that while the UAE and Dubai had advanced ahead of the region in terms of project management, the likes of Qatar, Saudi Arabia and even Iraq, were making serious efforts to catch up and surpass the Emirates.

“The UAE and Dubai is advanced ahead of anybody else in this regard, but everyone is looking to catch up and everyone is catching up, even reaching the level that we have here.

So it’s encouraging that now we’re being called

in to commence project management as well as general format of consultancy.”

Hill International is a major project management consultant and has worked on a number of projects across the world.

This includes working with various ministries in the Middle East to introduce best practices and processes in their countries’ construction industries.

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

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

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

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

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

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

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News Round-Up

ConstruCtion lags behind in salaries Salaries of those working in the equipment and machinery sector increased by 4.1% in 2012, according to a survey based on the input of 174 UAE companies by Aon Hewitt.

The HR consultant’s report revealed that in the GCC, the average salary of professional workers will increase by 5.4% in 2013, the same as the projection made in 2011 for 2012, indicating that organizations continue to show confidence in the economic stability of the region.

According to AON’s research, pharmaceutical and chemical sectors gave 5.8% increase while the machinery and equipment sector gave only a 4.1% increase.

Among the professional services sector, banks have provided the highest salary increase at 8.1% while the lowest increase was given by transportation, logistics and shipping services at only 2.5%.

The average increase was 5.1% placing the machinery sector well down the list of employers increasing salaries.

JORDAN INDUsTRy Is ON ThE bRINk Of COllAPsE Jordan’s construction industry may be on the brink of collapse due to unpaid government dues and the sharp drop in output, the Jordan Construction Contractors Association has warned.

A report in the Jordan Times has said that the government currently owes local construction companies around $168.9mn, quoting Ahmad Tarawneh, president of JCCA. Although the government has pledged to repay its debts, it has not kept this promise, Tarawneh said.

The value of projects carried out by local contractors this year stood at $210.8mn.

In 2009 it had reached $5.06bn, the industry figurehead said.

37 REAsONs bEhIND Why PROJECTs GET DElAyED the completion of the project.

The Saudi Arabian Ministry of Planning and Economy has demanded tough punitive measures against major contracting firms in the Kingdom, should they delay government projects due to negligence.

In a study conducted by the ministry, 37 reasons were identified for the failure or delay in the completion of government projects, said Abdullah Al Marwani, director of the research department at the Ministry.

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January 2013

He added that one of the major issues was that the government agency (or owner of the project) did not supervise the project or conduct adequate engineering studies of the project during the initial planning stages, a report in Arab News, a Saudi based newspaper, said.

Furthermore, because these agencies rushed through the process of inviting and signing bids, design problems were only discovered later on in the project, causing major delays to

Another issue Al Marwani pointed out was the use of small to medium sized contractors on projects, who hampered progress and delayed delivery.

“A serious problem with contractors is their dependence on small and medium range contracting companies,” Al Marwani said in the report, adding that these companies often lack the expertise or financial capacity to undertake major projects.

He added that contractors often selected subcontractors who had not participated in the

bidding process, which could cause problems during construction.

Contractors were also criticised for not conducting thorough research about the project requirements and technicalities prior to participating in bids. Furthermore, Al Marwani said that contractors often had project overlaps, which meant that their resources and efforts were overstretched.

For their part, the Kingdom’s contractors said that they faced major obstacles of their own when it came to dealing with the government, including bureaucratic procedures and formalities, as well as serious delays in getting paid.

providing a lift: ZPMC and TGPC have turned to Cavotec for the cable reels for cranes installed at DP World’s new container terminal at Jebel Ali Port in the UAE.

News Analysis

Kobelco coming to the Middle East CNH and Kobelco end their alliance and opens the door to the Middle East for the Japanese manufacturer

N

ews that CNH and Kobelco are to go their separate ways after a decade of collaboration snuck under the radar during the holiday season.

Of course machines from both have been present in the Middle East market throughout those ten years but mostly under the guise of CNH’s New Holland branding. Because of their global alliance any excavators with Kobelco’s distinctive blue livery were only present via the used market. Now the door is open for the Japanese manufacturer to take on the market – and a number of others – but it will need to tackle several challenges including competing with its own machines if it is to succeed outside the Asia Pacific.

The Kobelco and CNH alliance dates back to January 2002, when Japan’s first construction machinery manufacturer opted to join CNH’s (then only three years on from owner Fiat’s merger of its two US companies Case and New Holland) in an experiment to utilise each other’s technological and geographical knowhow.

Agreed to last a period of ten years, the alliance set out clear lines of demarcation with

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Kobelco pushing jointly manufactured machines in the Asia Pacific region and CNH taking on the rest of the world. In the proceeding ten years, China overtook the US and Europe to become the dominant market providing Kobelcoproduced excavators a hungry customer.

At the same time and perhaps inspired by sharing a global vision, Kobelco took steps to become the most progressive manufacturer from Japan – setting up manufacturing bases with CNH across the world including production in India. By 2010 Kobelco was able to partner with Sichuan Chengdu Chenggong Construction Machinery (CG) in becoming the first manufacturer of both hydraulic and crawler excavators in China as well as India.

CNH likewise had world class excavators to market in territories as diverse as the CIS, South America and the Middle East. However it was effectively locked out of the lucrative Chinese market and the potentially vast Indian market.

Ending the alliance now makes sense for CNH with new excavator demand on the decline in China, there are other machine types it could establish under its own branding and Kobelco is desperate to establish where its machines

History of tHe AlliAnce In September 2001, Kobe Steel, Kobelco Construction Machinery and CNH signed an agreement to form a global alliance. In January 2002, Kobe Steel transferred 10 percent of its shares in Kobelco Construction Machinery to CNH. In addition, Kobelco America Holdings Inc. transferred 65 percent of its shares in Kobelco Construction Machinery America L.L.C. to CNH. In July 2002, Kobe Steel transferred an additional 10 percent of its shares in Kobelco Construction Machinery to CNH. Kobelco Construction Machinery transferred 100 percent of its shares in Kobelco Construction Machinery (Europe) B.V. to CNH. At the same time, Kobelco Construction Machinery received from CNH 20 percent of the shares in New Holland Kobelco Construction Machinery S.p.A., a manufacturing and sales unit in Europe.

The 10 years of the global alliance divided the world’s marketing areas between Kobelco Construction Machinery and CNH. Kobelco Construction Machinery was devoted to strengthening its businesses in Japan, China, Southeast Asia and Australia. This enabled Kobelco Construction Machinery to focus its management resources on rapidly growing Asia including China and Southeast Asia. The company currently has one plant in Thailand, two in China, and one in India. In May, Kobelco Construction Machinery moved to Itsukaichi, Hiroshima to establish a state-of-the-art production facility and system that improves its competitiveness both in Japan and overseas.

With the ending of the global alliance with CNH Global NV, Kobelco Construction Machinery Co, Ltd. from January 2013 will be able to grow its business on its own and sell the KOBELCO brand hydraulic excavators in world markets. These machines are well-known for their advanced technologies such as low fuel consumption, low noise and onboard GPS. Kobelco Construction Machinery will build its own sales network and promote the KOBELCO brand around the world.

are still needed. Kobelco is owned by Japanese conglomerate Kobe Steel In a statement it confirmed: “From Jan 1, 2013, Kobelco Construction Machinery will market and provide services on its own in North America, Europe, South America, the Middle East, Africa, and the CIS countries.

With the ending of the global alliance, equity participation with CNH will also be terminated.

At the end of the year, Kobe Steel will buy back the 20-percent equity that CNH currently holds in Kobelco Construction Machinery. As for the equity that Kobelco Construction Machinery holds in CNH’s affiliate companies, the shares will be sold back to CNH.” While that may sound terminal, the terms of the divorce allow for a slow separation of the companies. After the initial term of the global alliance ends, CNH will still to be entitled to manufacture and sell hydraulic excavators currently licensed from Kobelco Construction Machinery. In addition, for a five-year period until the end of December 2017, CNH will have the right to procure hydraulic excavators from Kobelco Construction Machinery on an OEM basis.

Servicing parts will continue for 10 years. Kobelco Construction Machinery will also have the right to receive running royalties for the licensed hydraulic excavators manufactured by CNH for a five-year period until the end of December 2017.

CNH has not yet outlined its strategy for the Asia Pacific but Kobelco seized the opportunity to highlight its strengths including what it described as “highly regarded” technology in North and South America.

“In Japan, China, Southeast Asia and Oceania, Kobelco Construction Machinery has established its solid presence by its direct sales and marketing activities,” it said in a statement.

“In the six areas that it will re-enter [in North America, South America, Europe, the Middle East, CIS and Africa], Kobelco Construction Machinery believes it can increase sales volume and expand market share. Kobelco Construction

Machinery is aiming to gain new markets, which it was unable to do under the alliance with CNH.” If it is to gain traction in the Middle East, it will face the issue of a high Yen that is crippling exports to the region. That is unlikely to change in the foreseeable future and it will continue to compete in a space that includes strong premium brands such as Cat, Volvo and Komatsu. It will also be competing against CNH’s thorough network of dealers who will be selling its own models via their well-established channels.

However it has its India-based facility which opened in 2011 which is churning out 20t excavators for that market. It is not inconceivable that it could also use the facility as a staging point to service the Middle East. So when can we expect to see Kobelco machines?

Well sooner than you may think.

With effect from 1 January, Kobelco Construction Machinery began placing its latest models with core features of lower fuel consumption, lower noise and onboard GPS. These new models, it says, comply with the latest exhaust gas regulations will be launched onto the North American and European markets starting from April 2013.

Kobelco plans to develop products that meet local needs and enter markets where it was unable to directly play an active role under the global alliance with CNH. It also aims to increase its sales volume and market share that had gone down under the global alliance. This will be done on the ground level it says.

“By conducting business activities closely at the local level, Kobelco Construction Machinery will be able to give feedback on customer needs to its Global Engineering Center (GEC) in Itsukaichi, Hiroshima City, Hiroshima Prefecture, Japan, for product development. For the time being, Kobelco Construction Machinery plans to utilise its current plants in Japan, China, Thailand and India to meet its requirements.”

In other words, expect a call soon.

September 2011 January 2013

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Expert Opinion

A future with a past The expansion of the Masjid an Nabawi in Medina will lead to the taking down of three of the world’s oldest mosques. Gavin Davids wonders about the ramifications of such a decision.

A GAVIN DAVIDS Deputy eDItOR CpI CONStRuCtION

nation without a past is a nation without a present or a future. Thanks to God, our nation has a flourishing civilisation, deep-rooted in this land for many centuries. These roots will always flourish and bloom in the glorious present of our nation and in its anticipated future.”

These were the words spoken

by HH Sheikh Zayed Bin Sultan Al Nahyan, the late President of the UAE and the founder of the nation.

Although he was obviously speaking about his own country, those words could just have as easily been applied to the rest of the GCC. Especially when one considers a country like Saudi Arabia, which has a rich tapestry of history and culture that has fuelled its growth into a leader on the Arab stage.

Unfortunately, this history is at risk from the forces of progress and development, with the local government’s plans to expand the Masjid-an-Nabawi into the world’s largest building. Once the expansion is complete, the mosque

will have a capacity of more than one million worshippers. Work on the project, which is considered Islam’s second-holiest site, was scheduled to begin following the completion of the annual Hajj pilgrimage.

While the need for expansion cannot be questioned, the unfortunate reality is that Saudi Arabia stands to lose a priceless segment of its history and culture, if the plans are carried out as they are. This is because the expansion of the Masjid will destroy three historic mosques near the current structure, a tragic development since these mosques have been in existence since the seventh century and represent crucial links to the Kingdom’s past.

Criticism against the decision has been strident, with Islamic experts both in the Kingdom and around the world uniting to protest against the decision to bulldoze the mosques, which are dedicated to Abu Bakr and Umar, two of the prophet’s closest companions.

“WHILE THE NEED FOR ExPANSION CANNOT BE

qUESTIONED, THE UNFORTUNATE REALITy IS THAT SAUDI ARABIA STANDS TO LOSE A PRICELESS SEGMENT OF ITS HISTORy AND CULTURE, IF THE PLANS ARE CARRIED OUT AS THEy ARE”

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“No one denies that Medina is in need of expansion, but it’s the way the authorities are going about it that it which is so worrying,” says Dr Irfan al Alawi of the Islamic Heritage Research Foundation, in a report published by The Independent.

Most of the expansion of the Masjid an Nabawi will take place to the west of the existing mosque.

Located just outside the western walls of the current structure are the two mosques, as well as the Masjid Ghamama, a mosque built to commemorate the sport where the Prophet is thought to have given his first prayers for the festival of Eid. “There are ways they could expand which would either avoid or preserve the ancient Islamic sites, but instead they want to knock it all down,” Dr Alawi adds.

Having spent the last decade highlighting the destruction of early Islamic sites, Dr Alawi says that Saudi Arabia has not announced any plans to preserve or move the three mosques, which have existed since the seventh century and are covered by Ottoman-era structures.

He adds that the government has not even commissioned archaeological digs before the mosques are pulled down, which has caused considerable alarm amongst academics in the Kingdom.

No matter the pace or scope of development taking place, a country should always strive to embrace, or at the very least, acknowledge its history. No truly great civilisation has grown without an understanding of where it has come from.

As things stand, the stance of the Saudi Arabian government towards these mosques remains the same, and it is unlikely to change. We can only hope that lessons are learnt from the loss and that the rest of the GCC does not follow suit.

As a wise man once said: “He who does not know his past cannot make the best of his present and future, for it is from the past that we learn.”

Heavy Hitters

Why the industry needs Bauma CMME meets with the man behind Bauma and finds out why the industry still believes that the event is not only important but absolutely necessary.

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Bauma set to break records The 30th Bauma exhibition, being held in Munich, Germany from April 15 to 21 2013, will be the largest ever, with a total area of 570,000 m2. The last time the event was held in 2010 it covered 550,000 m2 and despite travel disruptions from Iceland’s volcanic ash cloud, attracted more than 400,000 visitors.

According to Dr Wolf-Dietrich Müller, executive director of capital goods shows at Organiser Messe München, the 2013 event will feature some 3,300 exhibitors and is expected to attract in the region of 450,000 visitors.

He added that even with the additional 20,000 m2 that has been found in the Northern outdoor exhibition area, many exhibitors were still looking for bigger

A

stands. “Many of our exhibitors wanted to enlarge their space, but we couldn’t accommodate all of those wishes. We would need another 30,000 m2 of outside space,” he said.

Dr Müller continued, “Bauma is the show where people show their innovations for the first time. There is a three-year innovation cycle in the industry.”

The exhibition is accompanied by awards for innovation in four categories – machinery, components, research and design.

According to Anja Schneider of the German Engineering Federation (VDMA), which is a partner to the exhibition, some 156 entries had been received by the closing date in August.

The competition was open to all Bauma exhibitors.

road trip from Mauritania on the West Coast from Africa to Munich in Germany sounds like hell. But when an ash cloud fell over Europe in 2010 and blocked air traffic, four visitors bound for Bauma were so determined to get to the world’s largest construction event that they rented the best car they could find and set off into the wild of Western Sahara. The rental insurance must have been almost expensive as the petrol.

“We heard unbelievable stories of how people got to the show,” says Klaus Dittrich, the CEO of Messe Munich. “The longest trip was the four guys that travelled from Mauritania by car but we also had people driving from Istanbul and even the Ukraine.”

It is a testament to the enduring appeal of the show that in era where equipment events seemingly pop up every week, that Bauma can still inspire the crazy in people. It is almost 50 years since the first Bauma took place in Munich as trade fair for the German market. Given Germany’s status as one of the world’s major exporters and strongest economies it is sometimes easy to forget that post-war, the newly divided country was ravaged and impoverished.

By the time Bauma opened its doors in 1954 it was an emerging state eager to build on its industry and in state of heavy construction. The show was modest by today’s standards.

“Bauma is one year older than me which is why I can’t remember it,” he jokes. “It covered 20,000sqm in the beginning and took place every year.”

Matching Germany’s evolution into a modern country, Bauma was to later become a three-year event but steadily grew to become a global event.

At 555,000sqm the last show was times almost 30 times larger than its first edition. Its organiser Messe Munich has likewise become one of the world’s biggest trade fair organisers: “After we built the new fair ground in Munich we started to internationalise our portfolio.”

Bauma returns in March as the clear number one event in the industry but in reality it is one highlight in arguably the most important year Messe Munich has ever had for its construction flagship.

Bauma China held in November was the biggest yet, February sees its part-owned BC India in Mumbai and in September it will host its first ever Bauma Africa. Dittrich’s job is to juggle the very different demands, logistics and occasional geo-politics that come with running a global enterprise.

Bauma China, for instance, was sold out but a dispute between China and Japan over the Senkaku Islands could have easily made the event a disaster.

Protestors had already forced many Japanese companies to halt production and the closure of the Chinese offices of Hitachi and Sumitomo. Security forces in Shanghai were reluctant to guarantee their protection at the show.

“All the Japanese exhibitors resigned and didn’t participate because of the political issue of the island,” he says. “They were fearful and the local security asked us to take care of the Japanese exhibitors and we couldn’t guarantee their security.

That was the reason they declined to exhibit.”

Dealers and manufacturers will be working to invite key customers and contractors to the Munich later this spring as they showcase their latest products.

“All THE JAPANESE ExHIBITOrS rESIGNED AND DIDN’T PArTICIPATE BECAUSE OF THE POlITICAl ISSUE OF THE ISlAND” January 2013

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Heavy Hitters

Thankfully for Messe Munich, Caterpillar made up the shortfall taking a 10,000sqm hall ensuring a 100% take up of space and defying the malaise in the market. Dittrich notes that the event came at a time of flux for Chinese manufacturers.

“Somebody told me that the Chinese economy is like a bicycle if you are not going fast enough it will fall down. They only have 6% growth which may not be good enough. People like Sany in the last 10 years had annual growth of 6%. If they haven’t got that then it will cause big problems.”

Bauma China has helped to establish Messe Munich globally and together with the American Association of Equipment Manufacturers who organise CONEXPO it founded a JV with them for the India market. He explains: “The reason it is called BC India is because it’s a Bauma and CONEXPO Show.”

Unlike its Munich home venue and the Shanghai Expo centre it co-funded and helped design and build, BC India takes place on a brown field site in Mumbai. Doubling in size the second time around, he hints that it is a frustrating arrangement - even if they were happy to build the temporary halls, restaurants and restrooms required for an event of its type.

“Originally we planned India to be 40,000sqm and in the end we covered 85,000sqm which is more than double the first Bauma China,” he says. “The challenge in India is that they don’t really have an international state of the art venue. It’s a limitation at the moment but we are quite optimistic that we will have an alternative next time. The 150,000sqm we have this time is already a limitation on the size of the show.”

His next challenge will be establishing a foothold for Bauma Africa which takes place in September.

Dittrich will be racking up airmiles to raise support.

“It’s not easy but we are working with the chamber of commerces and the consulates of the neighbouring countries. We are also talking to the governments in those countries and they are supporting delegations,” he says. “The companies that are exhibiting also have a reasonable level of database of the neighbouring countries.

Ambassadors of all these countries will also be invited to visit Bauma in Munich to show them how impressive this sort event can be at a special forum

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and look at the opportunities for southern Africa.”

Acknowledging the problems he faces he adds: “Our exhibitors are aware that it is not easy to attract visitors from these countries. Everyone knows it could take several years but we have already started to build up this relationship over the next five years.

I’m sure we will have a strong show.”

Considering China’s growing influence in both contracting and equipment supply it is not unreasonable to assume that Messe Munich may attract some Bauma China exhibitors to Africa.

“Sure they have a strong interest in Africa because of the natural resources. They have a very strategic view on these countries much more than the Western companies. We are pretty sure they will be there. If their home market is weak they are even more motivated to export.

“At the beginning the idea was to support our Munich customers to enter emerging markets like China. Visitors are not just coming from neighbouring countries but we have visitors coming from South America and Africa. It became a more international show. But if you want to see the newest innovations you can only see them in Munich.”

The main event remains Munich and this year he says that despite the continued depressed state of the European economy, it will be the biggest yet.

“The last Bauma at 550,000sqm was the largest show in the world. However it is growing to 570,000sqm this time around. We’ve taken over an area that is normally used as car park to make room.

We have also rented space outside the venue – and we are still fully booked.”

“We learned that it is the second and third tier exhibitions that get cancelled during a crisis, so you have to be number one. Bauma is unique. It’s the whole world market in one place every three years.

Many manufacturers adapt their innovation cycle with Bauma. They still want to use Bauma to show their newest innovations to the world.”

“WE lEArNED THAT IT IS THE SECOND AND

THIrD TIEr EXHIBITIONS THAT gET CANCEllED DUrINg A CrISIS”

Special Report

ConCrete Bonds Gavin Davids catches up with Jens Bawidamann and Hassan Al Mahroos in Bahrain during the launch of Al Mahroos’ new sales and service centre for Putzmeister’s concrete pumps and mixers.

January 2013

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Special Report

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s 2012 drew to a close, Putzmeister, the gigantic German concrete pump manufacturer, announced that it had tied up a partnership agreed with a Bahraini company to distribute its equipment throughout the tiny Gulf kingdom.

The partnership with the Al Mahroos Group will see the Bahraini company distribute and provide after sales services for Putzmeister products to the Bahraini market, while eventually also providing technical support and customer training for equipment such as concrete pumps and mortar machines.

While initial impressions of the deal could veer towards it being insignificant due to the size of the market, Jens Bawidamann, the regional director – GCC for Putzmeister Middle East, could not disagree strongly enough.

“Look, no market is too small. When you have to do business, you have to do business,” he tells CMME at an event to celebrate the launch of the partnership at the Al Mahroos HQ in Manama, Bahrain (with 60 ready mix contractors attending).

“I think that all the companies learnt this worldwide. Everybody was focusing on the big shots and forgetting the smaller markets.

Nowadays, people have learnt that even in the small markets, you can earn money and this money will be required in the tough times,” he explains, drawing a parallel between the market in Oman and the slowly remerging Bahraini market.

“Business is always important. Nowadays, if you look at Oman, seven years ago, no one was looking at Oman.

“Now it’s really running. If you’re there before it starts, you’ll be really safe when it goes. People will have confidence and trust (in you), they will not think that you only come when there is something here, or to catch the money.”

Hassan Al Mahroos, the driving force behind the partnership and the executive director of the Group, adds that while Bahrain is geographically

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“I BELIEvE THAT IN THE NEAr fuTurE – IN 2013, 2014 AND PArTICuLArLy IN 2015 – WHEN THE BrIDGE BETWEEN BAHrAIN AND QATAr STArTS, THErE WILL BE MANy PrOJECTS COMING uP ArOuND THAT ArEA” small, there is still a lot of opportunity for growth, with a large segement of the country ripe for development.

“I believe that in the near future, in 2013, 2014 and 2015, particularly in 2015, when the bridge between Bahrain and Qatar starts, there will be so many projects coming up around that area.

There are more than 5,000 villas being built by the Ministry of Housing, all of them will need concrete to be built,” he says.

“The recession hit Bahrain in the beginning of 2009, but Bahrain will recover from it. Okay, it may not be 100% now, but I believe that there are so many projects. “(Don’t forget) Bahrain is very close to the GCC’s biggest market, Saudi Arabia. So many companies want to be based in Bahrain, working in Saudi Arabia.

And now, with the bridge, companies want to be based in Bahrain and work in Qatar. They are waiting for when the bridge starts,” Al Mahroos explains.

Ambitious plAns With these plans in mind, Al Mahroos has ambitious expansion plans in mind, and integral to those plans are the success of its partnership with Putzmeister.

Having invested more than $2.65mn into building just the workshop, Al Mahroos is demonstrating just how serious it is about making the partnership work and flourish.

The workshop and showroom cost almost $3 million to construct and the partners are keen to ensure they capitalise on upcoming opportunities in and around the Bahrain market.

“I knew Hassan for many years and when we were talking in the beginning, we already had a partner here,” the regional director for Putzmeister says.

“What’s very important for Putzmeister is that we’re always looking for long partnerships and we don’t jump from one partner to another on yearly basis. So what I said to Hassan at the time was that ‘we have to give our partner a chance and see how we can do things’. Unfortunately for the old partner, it did not succeed,” he recollects.

“For us it was always a bit of a headache, we have the best product and we’re well known in the whole region. But only one part of success is having the best equipment.

“You need a strong partner, a partner who has a service philosophy and a vision (that match’s yours), and that’s something you can see here today, already in the short time we’ve been working together,” Bawidamann adds.

With a facility consisting of a high-quality workshop and a show room, Al Mahroos has gone to great lengths to ensure that his staff and crew have received the best training available, allowing them to meet the Putzmeister standard he says.

Not only did they consult the manufacturer throughout the building of the workshop, he has been ready to send technicians and engineers to the main factory in Germany for training.

In addition, Al Mahroos has ensured that his sales team has received a thorough education in the machines they’ll be selling, thus ensuring that he has every base covered.

“NoWAdAYS, PeoPle HAve leArNt tHAt eveN

IN tHe SMAll MArketS, YoU cAN eArN MoNeY ANd tHIS MoNeY WIll Be reqUIred IN tHe toUGH tIMeS”

“there is a workshop, there is a showroom, the machines are here, and people are trained.

So for us, it’s a very good situation. If we’re not successful now, then something is wrong,” Bawidamann asserts. explaining his philosophy, Al Mahroos says that one of the first things he looked for when starting on this venture was the right people to be involved. despite having invested a lot into the partnership, he tells cMMe that the most important asset he had available to him was the manpower at his disposal.

For the human element is the most critical component in ensuring the operation can be succesful in the market. “the human is the most important and now-adays, the human must be, whether an engineer, a technician or a sales person, they must be qualified. And not only technically qualified, but personally. He must have the ability to do his job in the right way and he must also have the spirit to do the work. this is not only from his side, but also from our side,” he points out.

“How do we improve that spirit? there are many factors. First we have to respect him, to give him the power and the responsibility, to believe in him and to give him a chance to work and prove himself. I think this is very important.”

Although the partnership is just starting out, Al Mahroos says that he’s got big plans for the future of his company, with expansion plans for the Group already in motion. to date, the company already operates throughout the Gcc, but Hassan Al Mahroos asserts that there are further expansion plans in the pipeline, though he declines to go into specifics. “today we build the foundation for this partnership, but the projects are coming. Bahrain is our headquarters, but we’re working all across the Gulf and we have branches all around the Gulf.

Al Mahroos then explains that he believes that his company has, potentially, a very good partnership and a good future with Putzmeister “New cities will be developed, the infrastructure and roads have already been built, but for what?

All these bridges and highways have been built for coming projects and we start, I believe, at the right time,” he concludes.

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Special Feature

A future on trAck The opening of the new Casa Tramway signals a new stage in the regeneration of Casablanca into a world class city able to look forward to a bright future.

January 2013

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Special Feature

T

he truck driver ahead of us is sat on top of his horn and his passenger has his head out of his window shouting at the car in front one of them. A mixture of Arabic with French swearing is fighting with the howl of the horn to be heard. The Peugeot driver hears both but he can’t move. The traffic lights have stopped working and the crossroad is in gridlock. Welcome to Casablanca the city that never sleeps when the traffic is bad.

And the traffic is always bad the calm man at the wheel of our vehicle tells us. In two days a light railway – or more exactly – a tramway is coming to town. No sooner than we cross the great divide of the crossroad are stationary again. The cab in front has just added another three passengers to the three that are already in a haggard-looking Mercedes. In most cities in the world a stranger jumping onto of your lap to get to his next destination could end in fisticuffs. In the tightly squeezed streets of Casablanca it is the only way to travel.

Although our driver says that you do have the option of the buses – if you can find one – or the cheaper red ‘petit taxi’ which to a new arrival seem to take the same amount of passengers in half the space. Either way until the tramway opens, getting around Casablanca requires a lot of patience and a little bit of luck.

Building a light railway in the Moroccan city of Casablanca has been a political and social hot potato ever since the French occupiers of the city attempted to build one at its new port in 1907.

Seeing the moderately sized city as a key staging point on the Atlantic coast of its expanding

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empire in North Africa, the European country was simply constructing what it saw as a useful link for incoming trade.

Unfortunately the French misunderstood local resistance to the plan and in particular the route which travelled through one of Casablanca’s most treasured cemeteries. The events that followed were to change the history of Morocco forever.

The citizens of Casablanca unleashed their anger on the streets of the city attacking and killing several French residents as they rioted. In retaliation the French army was sent in to wrestle control out of the hands of the Morocco and took Casablanca under its protection.

Three years after the riots Casablanca was officially brought under French rule and by 1912 almost all of Morocco was governed by Paris, ending the Sultan’s reign of his country.

It is with historical irony that a century later that the government of Morocco wants Casablanca to cash in on its prominence as the commercial centre of the country using French expertise and vision by opening the tramway as the city’s major artery.

At the turn of the 20th Century the population of the city was a few tens of thousands. The French colonisation helped take that to over a 100,000

Each 65 meters long tramway is composed of coupled wagons. It has a capacity of transporting over 600 travelers with 105 seating places. With a pool of 37 coupled tramways, Casablanca Tramway is estimated to transport 250 000 travelers per day.

“TESTINg WAS MAdE dIFFICUlT BECAUSE oF ThIS

ShorT AMoUNT oF TIME. ThErE ArE A loT ThINgS ThAT ThE PUBlIC WoN’T gET To SEE, BUT All oF ThE EqUIPMENT hAd To BE TESTEd”

Restoration of a landmark The Grand Mosquée Hassan II is the seventh largest in the world.

Restoration in 2005 was a huge undertaking.

1.442 standards) stainless steel rods as reinforcements for effective erosion control.

Effective restoration works were instituted in April 2005. This involved use of moly-grade stainless steel combined with high-grade concrete to make the structure resistant to chloride attack, a process that evolved during 3 years of research. This is expected to enhance the building’s life by 100 years.

Even though the many structural changes were made as per detailed design, still during execution of works, 100 external pillars, called “combs” because of their wave breaking characteristics, were exposed to salt water and wave action and had to be replaced with new pillars. These were made from highstrength concrete with 2205 stainless steel reinforcements.

The works were carried out in four phases. In the first phase a leakproof coffer dam was constructed to isolate and dry the work area.

This was built 5 metres (16 ft) below the highest water level. In the second phase, the voids seen in the prayer hall were filled with concrete.

In the third phase, the structural slabs and pillars on the exterior part of mosque exposed to the sea were demolished; 6,000 cubic metres (210,000 cu ft) of concrete was removed.

In the fourth phase, new exterior protection works were built using high-strength concrete with 2205 (conforming to UNS S 32205 EN

This necessitated an additional leak-proof dyke to be built behind the earlier one; total dyke quantity involved was 20,000 cubic metres (710,000 cu ft). All of these works involved use of 1300 tons of special steel (with 40 tons of Mo) of 8–20 millimetres (0.31–0.79 in) bars with yield strength of 850 N per mm2.

The concrete quantity poured involved 100,000 cubic metres (3,500,000 cu ft) of non-reinforced bulk concrete and 10,000 cubic metres (350,000 cu ft) of high-strength concrete. The entire work was done at a cost of $35 million.

“It has been a great challenge to launch

on the due date. 12 december, 2012 was set by all the authorItIes of casablanca cIty and we are proud to have achIeved It ”

but the number of people living in the city has exploded to almost 4 million. the existing infrastructure that has created channels from the madinat at its centre, the surrounding french architecture and the concrete housing beyond struggles to cope with the haphazard nature of casablanca’s growth. a light transport system in casablanca, once so unpopular, is now an essential element to its new regeneration into a fully functioning modern urbanised metropolis. a major highway will follow that will join the developing tourist-friendly cornice and beaches, the stunning hassan II mosque, and the heart of the city. the madinat which lies at one end of the planned road and alongside the united nations square and the tramway will also be redeveloped.

In heavy disrepair and poorly lit, it is the sort of place that gives lost tourists nightmares. the government believes it could be a major attraction and is shifting thousands out of the city centre to the outskirts.

In reaction to the so-called arab spring, morocco has quietly reformed its institutions with its prime minister abdelilah benkirane riding a wave of popularity into office that saw him promise to tackle corruption. one of his main targets are the operators of the bus companies who have been accused of bribery to win licenses. the tramway could become the symbol of a new casablanca and morocco and casablancans are embracing the changes to their city. on the day of its official inauguration thousands of people line the streets on a chilly december afternoon to see the King muhammed vI of morocco (he arrives

January 2013

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Special Feature

standing and waving from the back of his official vehicle to chants of “All hail the king!”) and French Prime Minister Jean-Marc Ayrault officially inaugurate Casablanca’s new tramway.

Opertating on Alstom Citadis wagons, the first line of Casablanca tramway crosses the city from the East to the West, linking various neighbourhoods from Sidi Moumen suburb to Ain Diab coast, the city centre, the universities, its commercial centre and the main train stations.

In what is a world first for a project of this type, the main 31km line opens across its entire length with every one of its 48 stations opening for business at the same time Offiicially called the Casa Tramway it features Citadis trains supplied by Dubai’s Al Sufouh’s tram designer France’s Alstom, is the first tramway in Morocco. While the tramway in Dubai has been built to serve the Metro (which also features Alstom trains) and was delayed during the downturn, Casa Tramway was fast-tracked in terms of its delivery.

First announced in 2008 the $700 million project (the Al Sufouh tram is valued at $250 million) came in on time and under budget.

“It has been a great challenge to launch Casablanca Tramway on the due date. 12 December 2012 was set by all the authorities of Casablanca City and we are proud to have achieved it thanks to the effective contributions and the support of all the parties, public authorities and all the companies that have participated in the project,” declares Youssef Draiss, general director of Casablanca Transport en Site Aménagé SA. Each 65m long tramway is composed of coupled wagons. It has a capacity of transporting over 600 travelers with 105 seating places. With a pool of 37 coupled tramways, Casablanca Tramway is estimated to transport 250 000 travellers per day.

“THE CHAllENGES OF PROJECTS lIkE THESE

ARE NuMEROuS.BuT WE WANTED TO SHOW THAT MOROCCO IS CAPABlE OF DOING WHAT WE SET OuT TO DO.”

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Casa Tram, the consortium led by RATP Dev alongside Caisse de Dépôt et de Gestion du Maroc and the Transinvest holding company, will operate and maintain the line for five years.

RATP Dev has developed the operating program and procedures through the Casa Tram consortium, along with regulations and the maintenance policy. It carried out all technical operating trials and signed off on non-rolling stock, energy supply facilities, signalling systems and rolling stock.

At the same time, it quickly deployed a team of RATP experts to hire and train local staff.

Around 15 experts from RATP and RATP Dev were seconded to the project and over 600 direct jobs were created. The dry run phase prior to entry into service was successfully concluded. Operational exercises were used to test the overall system and prepare facilities for welcoming passengers.

Through the Casa Tram consortium, RATP Dev will be responsible for operating and maintaining the first tramway line for a period of 5 years. The line features 48 stops, 27 of which are located on the core route: eight stops on the Southern loop, 13 on the Western loop and three terminuses: Ennasim, Faculté and Hay Hassani.

With time running short, the final phase of the construction including the testing of all the equpiment used on the line began in the summer.

“Testing was made difficult because of this short amount of time,” says Nadia Bourhiz, the deputy director general of Casa Transport. “There are a lot things that the public won’t get to see, but all of the equipment had to be tested.”

The testing phase included seven months of dry runs. Bouriz says that it was also a test for the road users of Morocco to get used to the trains and used to making way. Fortunately she adds wryly:“There were no major accidents...”

Casa Tram’s Drais says that it was a real challenge to set up the operation and “to work out the roles of everyone” ahead of the December 12 deadline, He adds that a sceond line is now on course for opening in 2015.

“The challenges of projects like these are numerous.But we wanted to show that Morocco is capable of doing what we set out to do and on time. And now we’re in a position to operate the second line.

unreserved auction

dubai, uae

For complete and up-to-date equipment listings visit www.rbauction.com

march 5 & 6, 2013 large amount of unused equipment

4 –UNUSED – 2011 CaTERPillaR 160K

2 – UNUSED – 2008 CaSE 580SR-2PT SERiES ii 4x2

5 / 7 – UNUSED – 2012 CaTERPillaR CS-533E

2 – UNUSED – 2012 DyNaPaC Ca250

UNUSED – 2009 MERCEDES-BENZ aCTROS 4140 8x4 w/ Cifa K48XRZ

please note: other unreserved auction

Johannesburg, south africa march 20, 2013 more than 250 mining equipment items

www.rbauction.com | +971.4.812.0600

auction site: P.O. Box 16897, Jebel Ali Free Zone, Dubai, United Arab Emirates

Construction Machinery ME 240x300 Dubai_ENG_Jan13.indd 1

1/2/13 12:17 PM

14-17 April 2013 Jeddah Centre for Forums & Events Kingdom of Saudi Arabia Co-located with

Saudi Building & Interiors Exhibition

The region’s largesT ConsTrUCTion

eQUiPMenT eXhiBiTion Find out more. Visit www.constructionmachineryshow.com © 2013 Corporate Publishing International. All rights reserved.

Following a successful 2012 event, the Construction Machinery Show, the largest construction machinery exhibition in the Gulf region, returns to Jeddah between 14-17 April 2013.

With the total value of awarded construction contracts reaching $72 billion in 2011 and with much more to come, the Construction Machinery Show is the ideal opportunity for buyers of construction machinery and heavy equipment to meet manufacturers, suppliers and distributors.

A total of 450 billion Saudi Riyals ($120 billion) will be spent on construction projects between 2012-2016, and much of the development is focused on turning Jeddah into a world class city, making it the perfect location for the Construction Machinery Show.

The 2012 exhibition proved that Saudi Arabia is the most dynamic country in terms of construction in the region, drawing praise from exhibitors for the quality of his attendees and the number of deals signed on the show floor.

With over 20,000 sqm of space at the Jeddah Exhibition Centre dedicated purely to construction equipment - the Construction Machinery Show in 2013 will once again stand out as an event where visitors come to buy.

We will be back in April 2013, Will you?

Gold Sponsor

Power and Lighting by

Organised by

The Aftermarket

More than an afterthought Whether you’re talking the supply or re-export the aftermarket is big business in the Middle East, which is proving to be a gift and curse with counterfeit a serious problem.

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Auto-matic for the people Hoards of international product launches underline the trade fair’s importance for the automotive aftermarket community.

The Middle East’s foremost trade and networking platform, Automechanika Middle East 2012, concluded a highly-successful threeday run.

Large numbers of trade visitors flocking the show floor until late in the day, on the lookout for new suppliers, fresh product ideas, spare parts and essential equipment - a record breaking edition.

Exhibitors and trade visitors were impressed stating that the 10th anniversary edition of the show exceeded all expectations.

The upbeat trend at the trade show was a direct reflection of the extremely positive outlook for the regional aftermarket, as underlined by Dubai’s most recent trade figures.

According to current trends the Middle East automotive aftermarket is expected to continue to expand riding on growing regional demand and the advantages offered

by Dubai’s growth as a transshipment and logistics hub.

Among the many highlights of Automechanika Middle East’s 10th anniversary edition, was the considerable number of regional launches for products and services by international aftermarket companies. Notable among these were Exedy, who launched a series of clutches for passenger buses and trucks.

Autokontrol, who launched speed limiting devices intended to enhance road safety, Joy FZE, with their automatic car-washing machine that enables considerably reduced water usage and ARB Corporation’s unveiling of their line of accessories for 4-wheel drives and rearview and parking cameras.

“With the 10th edition of Automechanika Middle East proving to be a great success, going by initial reports, it is clear that the future for the regional aftermarket continues to look bright,” said Ahmed Pauwels, CEO of organiser, Epoc Messe Frankfurt.

“We not only had wideranging participation from a large number of international leaders in the aftermarket industry, but also attracted a broad spectrum of trade visitors and buyers from across the region. The number of product launches at the exhibition, the fringe activities and the large number of networking opportunities provided by Automechanika Middle East underscores the relevance of the fair to the regional industry,” he added.

Schaeffler Automotive Aftermarket expanded its product portfolio with a new FAG wheel bearing repair solution for light commercial vehicles, specifically designed for the Mercedes-Benz Sprinter, Vito and Viano models.

Attending the event was worldwide President Schaeffer Automotive Aftermarket, who said: “Automechanika Middle East is a very professional concept. We see really professional people here and the quality of meetings and discussions we are having here is on a very high scale.”

Hardex Corporation from Vancouver, Canada launched four new series of brake pads into the region. Babak Ras, International Marketing & Sales Manager from Hardex, said: “We were delighted with the initial response to our products at Automechanika Middle East. This has been a fantastic platform for our product launches. You have to participate in Automechanika Middle East if you are serious about doing business in this region.”

“There is a percepTion ThaT They are hand-

made in poorer counTries and ThaT you are somehow supporTing a poor economy”

I

t is a reasonable bet that many, if not most of the people reading this article have at some time bought a fake. For men this is probably the acquisition of a fake rolex or Breitling watch. For women it is likely to be a Louis Vuitton or chanel bags. many people regard these fakes as a bit of fun. There is a perception that they are hand-made in poorer countries and that you are somehow supporting a poor economy, almost in a charitable way. nothing could be further from the truth. Fakes are backed by organised crime and are often more organised than the distribution channels for the real items. asia is the principal source of the world’s fake brands market with china the largest source economy. official estimates suggest that counterfeit products account for 15%-20% of products made in china, representing 8% of china’s us$2.6 trillion gdp. some faking is as impressive as it is laughable. in august 2011 a total of 22 fake apple stores were discovered uncovered in the chinese city of Kunming. employees of the stores were actually under the impression that they worked for apple. some is much more serious. an entire african village recently was infected with malaria. There was no apparent reason for this, the medicine they were issued was the same and this mass infection engendered a world health organisation investigation. in fact one batch of malaria medicine

issued to the villagers was fake and made of chalk.

This past may, prestigious British medical journal ‘The Lancet’ published findings that 30 percent of 1,700 malaria pills tested in southeast asia and west africa didn’t work. in one-in-three cases, a box labelled as treatment for the mosquito-borne plague actually contained pills made with inert chemicals, expired active ingredients, or ingredients cut to stretch one pill into several — enough to fill the box, each scantly more medicinal than an m&m. so fake rolexes are bad and fake medicine can be deadly. But what about fake machine parts? well it’s easy, all you have to do is not buy fakes right? not really. a recent us investigation found counterfeit electronic parts in their military aircraft. The yearlong investigation by the us senate has pointed to suspected bogus parts — amounting to over a million — in c 130 J transport aircraft as well as the test aircraft of the p 8 poseiden series of maritime surveillance planes.

Both these aircraft have been contracted by india in the past few years under the Foreign military sales (Fms) pact with the us. more worryingly, most of the suspected electronic parts — ranging from chips in the display systems of the c 130 Js to components in the ice detection system of the p 8 — have originated from china. if there is one place you don’t want to find fake parts it is in your principal transport fleet for ground troops. or on a construction site of course. it’s fair to say

January 2013

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The Aftermarket

that if a construction operator owns a Bentley and a cat bulldozer that the bulldozer will be operated more than the Bentley. people buy machinery because they need it. as many gulf region residents will attest much of this earth moving equipment is used on a twenty four hour basis. so how big is the problem of fake parts? according to a survey carried out by the committee for european construction equipment, just under 50% of machinery manufacturers surveyed believed they had seen examples of non-compliant machinery on a job site. a further 37% believed that they had lost sales due to a customer opting for a possibly cheaper, but non-compliant piece of machinery.

Manitowoc cranes director for the eMea region, philippe cohet advised greater use of rfid tagging during the production process to make identification of counterfeit parts simpler. he also emphasised the importance of educating sales staff and distributors on how to spot non-compliant machinery to provide further checks and balances in case non-compliant machinery has already entered the supply chain. caterpillar told cMMe why counterfeit parts are a bad idea. “if you buy fake air filters you face the following problems: improper size (dimensions) which can cause fit problems and sealing issues that allows for leak paths,” said the company. according to cat, one of the principle concerns is poor quality material. substandard material used that does not have the level of efficiency required to adequately protect the air intake system leading to premature turbo failures and excessive wear in the engine cylinders. another worry is products that use an insufficient amount of material. the less material used, which can impact the life of the filter causing more frequent filter changes which introduces more debris into the air intake system.

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January 2013

then there is poor construction which build leak paths into the filter, allowing debris to bypass the media affecting engine component life. “if your choice is to then use counterfeit fuel, filters and fuel/water separators, you can expect the following: material that is not efficient enough to capture the smaller particles that do most of the damage to fuel injectors.” according to world’s largest equipment manufacturer, leak paths allow unfiltered fuel to bypass the media which can shorten the life of fuel injectors and fuel pumps. less robust design can lead to fatigue failures that over time lead to filter leaks. thus increasing the potential for catastrophic “thermal events”, says cat. please note the rather enigmatic use of the words “thermal events.” if you have a particularly vivid imagination you could see yourself watching $750,000 worth of plant burning like a bonfire because you decided to save $100 on a filter. and of course most plant is not replaceable in a short amount of time. so what happens if counterfeit engine lube filters are your bag? well, less robust design could cause filter cans to rupture due to high pressure event (such as cold starts). again poor material quality that do not effectively remove the ‘right-sized’ particles, can lead to early bearing failures and excessive valve wear. finally poor construction with built in leak paths allow unfiltered oil to bypass filter media and shorten engine component life. and what about hydraulic/transmission filters? counterfeit products using cheaper mataerial will

“Most counterfeit parts are produced

in china and that is where the largest Market is”

Unfiltered oil can shorten component life of control valves, pumps, cylinders while also adversely affecting the hydraulic system performance. Seemingly minor details but it could lead to serious and fatal problems.

not remove the correct particles and raise the possbility of lower of performance in control valves and early component wear. unfiltered oil can shorten component life of control valves, pumps, cylinders while also adversely affecting the hydraulic system performance – leading to sluggish controls, loss of system efficiency and more downtime. Many of these systems are at high pressures and catastrophic failure can occur (ruptured filters, etc). so the advantages of using genuine parts are, according to caterpillar’s point of view: “real parts are precisely designed and manufactured to operate as a system for the customers’ equipment. only original parts are updated with the latest engineering specifications guaranteeing that they will offer the life and performance needed. they are backed by a solid warranty protection.” so that’s the danger, but where does it come from? “counterfeit spare parts for cranes originating in asia are spreading into regions including the Middle east”, explains thibaut le Besnerais, global product director of tower cranes for Manitowoc cranes. he adds: “Most counterfeit parts are produced in china and that is where the largest market is. however parts are spreading to other markets such as the Middle east and india, counterfeit parts are largely not a problem in europe due to customer awareness. in europe the consequences of a mistake are bigger, so operators are more careful. in the Middle east] you have to educate the market.”

Jean-pierre Zaffiro, global product director of Manitowoc, said that chinese companies were manufacturing fake parts but were copies of much lower quality. “generally you get what you pay for,” said Zaffiro. “suppliers are targeting the market through websites. crane parts need to be resilient as jerking can occur. high-grade steel is more ductile [stretchable] in cold climates.” “counterfeiters do not guarantee what steel grade they use as they buy it from questionable suppliers. cost savings are small but accidents are expensive,” he warned. counterfeit crane components have been blamed for a number of tower crane collapses in asia. rudolf Wiegand, Man truck’s vice president, after sales agrees: “non genuine parts are made of inferior quality material and lack quality checks.

“We have a very open dialogue With the

oeMs and other vehicle Manufacturers and We see that there is lots of potential” “they may cause severe damages, additional costs and increase down time for the vehicles. “for that reason during 2013 Man will focus on a number of campaigns to enlighten our customers about the costs occurring as a consequence of counterfeit parts and about the safety risks associated with non-genuine parts.

“We have a very open dialogue with the oeMs and other vehicle manufacturers about safety and we see that there is lots of potential to improve the safety of the roads by showing the dangers of counterfeit parts.” so what do we do? We know that largely speaking the counterfeit parts come from the same place that peking duck comes from. Well actually the chinese are trying to begin to police the problem themselves. in 2011 china announced its intention to set up a national office to handle intellectual property rights (ipr) infringement and counterfeiting, according to theXinhua state news agency. the announcement came just ahead of the 10-year anniversary of china’s accession to the World trade organisation (Wto). over that time, the country’s share of global exports has risen from 4% to nearly 11%, but that success has been mirrored by complaints that the country has become the primary hub for manufacture of a host of counterfeit products. the sad fact is though that as long as there is greed and opportunity there will be counterfeit. the decision that operators need to make is not what the saving on fake parts are but what the potential real cost is.

January 2013

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37

MAN Truck Bus –&ABus member of the MAN MAN&Truck – A member of theGroup MAN Groupwww.man-middleeast.com www.man-middleeast.com

N A M N MA MAENPTORT TUEVPORR T

POERR TUV TRUV RINREN WE ER WINN WINN12

Quality-Champion.

0 2 1 uality-Champion.

The TUV 2012 Commercial Vehicles report has confirmed that MAN trucks lead the way. In the „faultless“ 20 Quality-Champion. category, they topVehicles the rankings one-year-old trucks.

What is more: for way. two- In to the five-year-old 2012 TUV 2012 Commercial reportfor has confirmed that MAN trucks lead the „faultless“vehicles,

MAN is ranked significantly ahead of report the competition. in for the category for vehicles withInthe gory, The they TUV top the rankings for one-year-old trucks. is And more: twoto five-year-old vehicles, 2012 Commercial Vehicles hasWhat confirmed that MAN trucks lead the way. theleast „faultless“ „substantial deficiencies“, MAN is the undisputed champion in all age brackets.

This just goes to show is ranked significantly of the competition.

And trucks. in the category for vehicles withtothe least category, they topahead the rankings for one-year-old What is more: for twofive-year-old vehicles, that MAN drivers don’tisjust well, they drive a in whole lotinbrackets. better. stantial deficiencies“, MAN the drive undisputed champion allAnd age This for justvehicles goes towith show MAN is ranked significantly ahead of the competition. the category the least MAN „substantial drivers don’tdeficiencies“, just drive well, they drive a whole lot better.

MAN is the undisputed champion in all age brackets. This just goes to show that MAN drivers don’t just drive well, they drive a whole lot better.

UAE KSA Bahrain Darwish Bin Ahmed & Sons Haji Husein Alireza & Co. Ltd. Ahmed Mansoor Al A‘ali Co. BSC (c) Bahrain Tel.: +971 (0) 2 558 4800 KSA Tel.: + 966 2 6049 444 Tel.: + 973 1 777 1030 sh Bin Ahmed & Sons Haji Husein Alireza & Co. Ltd. Ahmed Mansoor Al A‘ali Co. BSC (c) www.dbasons.com www.hha.com www.al-aali.com UAE KSA Bahrain 971 (0) 2 558 4800 Tel.: + 966 2 6049 444 Tel.: + 973 1 777 1030 Darwish Bin Ahmed & Sons Haji Husein Alireza & Co. Ltd. Ahmed dbasons.com www.hha.com www.al-aali.com Qatar Oman Jordan Mansoor Al A‘ali Co. BSC (c) Tel.: (0) 2 558 Automobiles 4800 Tel.: + 966 2 6049 444 Tel.: + 973 Automotive 1 777 1030 Qatar+971 International Arabian Engineering Services LLC Integrated www.dbasons.com www.hha.com www.al-aali.com Oman Jordan Tel.: + 974 4603 288 Tel.: + 968 245 78 000 Tel.: +962 6 5725 911 International Automobiles Arabian Engineering Services LLC Integrated Automotive www.nuqulgroup.com www.fahedgroup.com www.saudbahwangroup.com Qatar Oman 974 4603 288 Tel.: + 968 245 78 000 Tel.: +962 6 Jordan 5725 911 Qatar International Automobiles Arabian Engineering Services LLC Integrated www.nuqulgroup.com Automotive fahedgroup.com www.saudbahwangroup.com

Product Focus

Raw power EVERYTHING YOU NEED TO KNOW.

page 40 RAW POWER

Bauma China saw a flurry of new technology or updates to existing kit hit the marketplace with many of them suitable for use in the Middle East.

page 45

SECTOR ANALYSIS

page54

A look at the tower cranes that could soon be up for purchase or rental in the market very soon.

MINING & QUARRYING

The region continues to be a gold mine for OEMs but Egypt struggles.

page 41 RAW POWER

Deutz and its Chinese partner unveil a new engine they claim is ideal for construction equipment.

page 50 HOW

TO SPOT A FAKE

Your indespensible guide to knowing your real parts from the fake ones.

page 58 LAST WORD

Why has Dubai decided now is the time to build a new city within the city before finishing other projects.

January 2013

CONSTRUCTION

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39

New Products

a WorLd of WheeL LoaderS from dooSan

CAT’s new wheel loAder Why get It? bASED ON EXCELLENT 770g LOAD SENSOR ONbOARD

C

aterpillar presented its new Cat 986H Wheel Loader for the first time to thousands of visitors attending Bauma China 2012. The 986H wheel loader, with an operating weight of 42 metric tonnes, is designed to endure the most challenging environments while offering maximum cost savings with its reliable and fuel-efficient performance. The new wheel loader embodies Caterpillar’s philosophy of providing highquality, long life-cycle machines that customers can depend on.

Cat wheel loaders have played a pivotal role in sustaining China’s growth by enabling quarry operations around the country to deliver efficiently and productively. The new 986H Wheel Loader adds to that legacy with the ability to quickly load the 770G Off-Highway Truck (38.6 tonnes capacity) in just four passes. Equipped with a high lift front linkage, the 986H is an efficient five-pass match with the 772G (47.7 tonnes capacity).

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Designed for the quarry pit, the 986H features the Cat C15 ACERT engine with net power of 300-310 kW. The wheel loader also features a load-sensing hydraulic system and torque converter lock-up clutch to reduce fuel consumption and reduce operating costs. The Cat planetary powershift transmission provides consistent, smooth shifting through its four forward and three reverse gears, which enable the operator to adjust speeds to suit the tasks.

With operators working for long periods of time, the 986H cabin is designed for comfort. The spacious cabin is pressurized to keep dust out, and intake air is filtered. Automatic temperature control maintains cabin temperature. A roll over protection system (ROPS) is integrated into the cab design.

SpecIfIcatIonS • operating weight: 42t • Lift capacity: 47.7t • engine: Cat C15 ACERT • net power: 310kW

the new dL200-3 wheel loader is powered by the doosan dL06 Interim tier 4 diesel engine delivering 107 kW (143 hp) of power at 2100 rpm.

Like the dX140Lc-3 excavator, the dL200-3 wheel loader features a new cab design offering better visibility thanks to a wider front glass section and an extended wiper blade area. now that the reservoir for the wiper water is located on the outside of the cab, space inside has been increased, providing more foot room. the air conditioning system is regulated automatically by a temperature sensor.

With a bucket capacity of 2.0 m3, the dL200-3 wheel loader is intended to meet a wide range of materialhandling needs from loading and transporting granular material to industrial, mining and quarrying applications.

In common with all new generation doosan wheel loaders, the dL200-3 model is equipped with load sensing controlled, variable hydraulic piston pumps, improving performance and reducing fuel consumption. With load sensing, the hydraulic pumps receive a signal

from the mcV (main control valve) informing how much oil is needed. this helps to save on engine performance. on the stand at World of concrete, the dL2003 wheel loader will be equipped with a coupler and pallet forks attachment. as well as offering more standard features than other machines of its size on the market, there is an expanded choice of options for the dL200-3 wheel loader, including electric steering. a larger opening angle for the side door makes it easier to service the machine.

Swing-out side doors provide easy access to the rear for cleaning the new one-block radiator. Increased space in the engine compartment ensures that components such as filters, valves and batteries are within easy reach for service work.

SpecIfIcatIonS • capacity, heaped: 2.0 m³ • Length with bucket: 7,285 mm • Width with bucket: 2,550 mm • dump height (at 45°) with bolt-on teeth: 2,817 mm • dump reach (at 45°) with bolt-on teeth: 1,064 mm • maximum travel speed (4th gear): 37.4 km/h • engine: 6-cylinder Doosan DL06 EGR • engine output: 118 kW at 2100 RPM • operatng weight: 12,200 kg • Breakout force: 9,700 kg

Deutz poWers aheaD Why get It? tailored for construction equipment

specIfIcatIons • engine type: TCD 3.6 L4 • power: 55.4-97kW • size: 4.5l • emissions type: SCR

Deutz and its Chinese joint venture DDE present engines in the power output range up to 500kW Tier 4 engine TCD 3.6 L4 unveiled for the first time last month.

Deutz teamed up with its joint venture Deutz (Dalian) Engine (DDE) at Bauma China to present engines for construction equipment.

Deutz and DDE offer engines with a power output range of up to 500kW that combine increased power density with a high level of efficiency and proven Deutz quality.

This charge-air-cooled fourcylinder engine with a power output range of 23 to 74.9kW features a compact engine design and an innovative and efficient injection/combustion system.

For power outputs of 66 to 155kW, the Deutz range includes the TCD 2012 L6 engine for construction equipment.

The liquid-cooled six-cylinder

in-line engine boasts high power density with excellent economic efficiency, durability and long service intervals.

For applications requiring higher output ranges, Deutz’s portfolio includes the TCD 2013 L6 2V. This engine for construction equipment, available with four or six cylinders, boasts a power output range of 74.9 to 243kW. The engine on show with the highest power range will be the TCD 2015 V8.

This liquid-cooled V engine – which is also available as a six cylinder – has a power output ranging from 240 to 500kW and features a compact and robust design.

For the Tier 4 exhaust emissions standard, Deutz showed the TCD 3.6 L4 at Bauma China. This ultracompact, water-cooled fourcylinder engine covers the 55.4 to 97kW power output range and generates a level of

power comparable with that of a 4.5-litre, turbocharged Tier 3 engine.

Rigorous engine down-sizing now provides customers with additional installation space for exhaust aftertreatment components.

The engine meets the requirements for Tier 4 <56kW as well as EU Stage III B and EPA Tier 4i >56kW with DVERT oxidising catalytic converter, and for EU Stage IV/US Tier 4 >56kW with SCR. A variant without AGN for less heavily regulated markets is available as an option.

The company said: “For Deutz the Chinese market offers the greatest potential for growth in Asia. The increasing tightening of emissions legislation in China will boost the demand for top-quality technology in the coming yearsand offers DEUTZ the opportunity of winning a greater share of the market there.”

shantuI busts 105t bullDozer barrIer Why get It? shantui KnoWs doZers When siZe matters Chinese construction equipment manufacturer Shantui has introduced what it claims is the largest bulldozer in China at the Bauma China show – the 105 tonne SD90-5.

Powered by a 708 kW engine, the tracked dozer is designed for large-scale earthmoving projects. It is equipped with a 45 m3 capacity blade and a ROPS and FOPS-certified cab.

On-board technology includes colour display instruments with automatic fault detection systems and a remote monitoring system to allow real-time diagnosis of servicing needs.

The SD90-5 also features a new hydraulic fan system which adjusts its speed according to working conditions – technology that Shantui claims helps reduce fuel consumption.

Currently undergoing certification, the SD90-5 prototype will operate in the harshest environments with great efficiency. With the world’s environmental regulations and engineering practices constantly changing, the SD90-5 adapts well to different methods of mining and earthmoving. Featuring a rearmounted hydraulic ripper arm, the SD90-5 is well-suited for agitation-method mining, while the 45-cubic-meter blade is excellent for clearing any stone debris. Furthermore, its K-type floating

rollers and auto-locking torque converter give it the means to efficiently handle any water conservancy, earth moving, or demolition tasks.

Complementing its robust power, the SD905 comes standard with many new features and designs developed by Shantui’s own engineers to optimize the operator and ownership experience.

The SD90-5 is built with a modular design, so that components can be easily maintained or replaced. For example, the new integrated gearbox utilizes the coolant and oil-injection lubrication systems of the rest of the machine, easily connected and disconnected from the rest of the working units. This reduces the overall size of the gearbox, facilitating removal and maintenance.

In the area of operator use the SD90-5 features an on-board integrated computer and proportional pilot control. The computer is integrated with the rest of the machine, allowing real-time monitoring of vital systems, remote diagnosis of faults, and GPS tracking.

The pilot control is also connected to the gearbox, providing more gear options and smoother shifting. To aid in operator comfort new floor structures reduce cab vibration, and a roll-proof cab structure increases user safety.

specIfIcatIons • power; 708 kW • blade capcity: 45m3 • capacity: 105t

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New Products

World first from XCmG

A top-lift from tereX WHy Get it? shares global tech improved jobsite availability

The new Terex Toplift 036G truck crane from Terex China boasts many of the same technological innovations found throughout the entire Terex family of cranes. Built with pride in Luzhou, China, the new 36 t class crane represents the next advancement in bringing Terex design, operation and styling to the China market. Operators of the new Toplift truck crane will experience a user interface, ergonomic control layout, and look and feel common to Terex crane models working in other major world markets.

The 36t Terex Toplift 036G features a lightweight but powerful five-section boom with a 38m fully extended boom length and 51 m maximum tip height. Its 14m jib manually swings into position and offers 1- and 30-degree offset positions.

“The Toplift 036G follows the two award winning models introduced last year. They are true Terex cranes that share more common features and styling details than ever before,”

said Ken Lousberg, president of Terex China.

“The new crane incorporates design elements (or features) based on extensive customer and dealer feedback. They blend Chang Jiang’s legacy for strength and lift performance with the latest Terex innovations.”

Large cabin windows provide excellent visibility to lift points and to the left and right sides of the crane. The rated capacity indicator features a graphical display that provides immediate feedback of load weight and alerts the operator before the load is outside the rated lifting capacity for radius and configuration.

Left- and right-hand pilot-actuated multi axis joysticks provide efficient and intuitive control over boom raise/lower, upper carriage slewing, boom extension/retraction, line raise/lower, and auxiliary second winch operation.

The truck crane features hydraulic hose and electrical wire routing common to other Terex crane models. Banjo-type connector fittings and secured hydraulic line routing enhance crane longevity. Additional crimping and plastic tubing protect electrical wires during operation to improve the crane’s jobsite availability. speCifiCAtions • lift capacity: 36t • max travel speed: 75km/h • Boom length: 38m • maximum tip height: 51m • Jib length: 14m jib

neW inBetWeener from doosAn The new DX140LC-3 excavator on the stand at World of Concrete will be equipped with a coupler and hydraulic breaker. A plate compactor attachment which can also be mounted on the DX140LC-3 model will also be on show at the exhibition. The excavator is powered by the reliable Doosan DL06 6-cylinder ‘common rail’ turbocharged diesel engine providing 74.5 kW (98 HP) of power at 1850 RPM. The DL06 engine

meets Interim Tier 4 emission regulations through the use of EGR (Exhaust Gas Recirculation) and DPF (Diesel Particulate Filter) after-treatment technologies.

Delivering excellent performance in the 12-14 tonne size class, the new DX140LC-3 excavator offers a maximum digging depth of 5258 mm and a dump height of 5867mm. Digging force over the bucket is 29156 kN, while that over the arm is

19133Nm. Users can choose from Standard Mode for optimised fuel consumption and general working conditions, Power Mode for faster cycle times and heavy duty work requirements or economy mode. speCifiCAtions • size range: 12-14t • max dig depth: 5.2m • dump height: 5.8m • dig forces: 29.1t kN

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

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WHy Get it? it’s big... but still mobile Xuzhou Heavy machinery has broken the traditional crane design concept to introduce the industry’s first 1000t crane with lattice jib XCl 800 wheeled crane with lattice jib, pioneering the new direction of industrial product innovation and technical innovation. the XCl800 combines the mobility of all-terrain crane and crawler crane with lattice jib, and integrates XCmG’s mature all-terrain resources and lattice jib resources. the optimal combination and innovative mode have created a new crane that has ultra strong capabilities of transit hoisting, is easy to assemble and disassemble, and is superior in hoisting. the new crane has filled a domestic gap. the model was developed by XCmG after elaborate market surveys, analyses and demonstrations. through team innovation, several key technologies were conquered and mastered, of which new eight-axis heavy-duty chassis, ultra-large-span X-shaped leg structure, computational simulation of complex jib system, assembly,

disassembly and transition, and multicondition power self-adaption have been up to leading international standards.

With a maximum speed of 75km/h and a maximum climbing capacity of 35 percent, eight-axis all-terrain chassis boasts outstanding drive performance. Besides, the model has achieved great breakthrough in assembly and disassembly, transport and transition convenience. the application of technologies like hydraulic powering, encasement transport and special transition condition design can boost operating efficiency and save transport costs enormously.

XCl800’s introduction marks a new step in the independent innovation and development of Chinese cranes as well as a critical step of Xuzhou Heavy machinery in the process of technical innovation. from auto crane, crawler crane, all-terrain crane, tower crane, special crane to wheeled crane with lattice jib, the company is moving step by step on the road of independent innovation.

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Sector Analysis

StaticS on the move Tower cranes may be on the brink of a regional renaissance, CMME looks at the types of hi-risers that should be in high demand.

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Sector Analysis

A

region-wide move to residential and infrastructure projects coupled with a drying up of tall tower construction dented the fortunes of static cranes in the past half-decade. This change in dynamic let mobile cranes – which offer greater financial flexibility – snaffle a major share of work on new projects, but do not write off the virtues of tower cranes just yet.

A move to rental-style operations from OEMS in collaboration with dealers and an abundance of stock has made them much more competitive again.

Large scale projects, their bread and butter, are also seemingly back in fashion with Dubai’s Muhammed bin Rashid City the icing on top of a cake that sees high rise projects in the pipelines of Saudi, Kuwait and inevitably/eventually Qatar.

With a lot of the region’s inventory currently ageing towards obsolescence it is about time that we took a look at some of the types of new kit that is available in the marketplace.

Liebherr chose to use InterMat in Paris to unveil its new 380 EC-B 16 Litronic flat top crane, its series flagship, extending the series range to 380 ton-

“A MOvE TO REnTAL-STyLE OPERATIOnS hAS MADE ThEM COMPETITIvE AgAIn”

meters. In addition to lifting capacity, the 380 EC-B offers great versatility, a compact superstructure for convenient transport, Litronic controls and features for enhanced ease and safety during erection.

The 380 EC-B provides a maximum radius of 75 meters, and can lift up to 3,400 kilograms at the end of the jib. The model can be specified in either a 12or 16-ton capacity rating.

The middle of 2012 saw Terex launch its new CTL 650 F45 luffing jib tower crane bringing into the new generation of extra-large capacity class luffing jib tower cranes.

The new model tops out the existing Terex tower crane range of 14 CTL luffing jib models, offering a maximum capacity of 45 tonnes and equipped with a 65-metre jib. Terex used the letter ‘F’ in the product name as a tribute to Ferruccio Moritsch, a pioneer and innovator in the tower crane industry, particularly the luffing jib tower crane, who passed away in July 2011.

The new crane boasts standard safety features such as jib walkways and handrails to provide a safe working environment for technicians during set-up and maintenance.

An anti-collision system is offered as an option to help the operator in planning and executing lifts, while avoiding collisions with other cranes or buildings. The CTL 650 F45 is also fitted with the Terex EvO 15 operator’s cab, which features five large

From pulley to luffing – A time for the history of cranes

46

1600 BC – The world’s first known pulley Archimedes invents the first known pulley system in recorded history. It is generally agreed that before then tree branches were used for leverage.

500 AD – The Winch and Pulley The winch and pulley system made the building of the first proper crane possible a few hundred years later.

1500 BC – The world’s first hoist.

Soon after the pulley, chains of them were tied together for the first hoist systems in Greece.

800 AD – The first real cane Cracking the winch and pulley system led to the creation of the world’s first – wooden - crane.

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1225 AD – The treadwheel crane An early pre-cursor to the tower’s of today, the treadwheel crane was operated by person from inside who would pull the rope to allow the raising of an object. To smooth out irregularities of impulse and get over ‘dead-spots’ in the lifting process flywheels are known to be in use as early as 1123.

windows for improved visibility. released close to Ctl was linden’s newest flattop the 21 lC 660 tower crane although it later revised the four versions of this tower crane (with maximum loads of 18, 24 36 and 48 tonnes respectively) adding an extra 4m to the jib length taking its full extent to 84m. the 21 lC 660 tower crane is well suited to the large industrial, public works, mining and infrastructure projects that currently dominate the market. it achieves a maximum jib length longer than most part of the tower cranes that are currently available in the market with similar characteristics.

Comansa has explained that it has lengthened the jib because, “at this moment, very few manufacturers can offer jib lengths longer than 80 meters in tower cranes with similar characteristics than the 21 lC 660, and even fewer have flat-top tower cranes with more than 360 tonne-meters”.

“Because of this, with its 84-meter-long jib, flat-top design, 660 tonne-meters and its highly competitive price, the 21 lC 600 showcases as one of the most attractive cranes on its segment.” towards the end of the year, linden Comansa’s Chinese subsidiary Comansa Jie exhibited its 21 CJ 400 flat-top tower crane and 110kw winch at Bauma China. the 21 CJ 400 from Comansa Jie’s hangzhou factory, with maximum load capacity of 18 tonnes. the flat-top tower crane can load up to 3,000 kilos at its maximum jib length of 80m.

1340 AD – A small tower crane By the 14th Century, European engineers had designed the cranes that were able to not only left but also turn.

1742 AD Harbour Cranes Stationary harbor cranes are considered a new development of the Middle Ages.The typical harbor crane was a pivoting structure equipped with double treadwheels. These cranes were placed docksides for the loading and unloading of cargo where they

another western manufacturer producing cranes in China, potain launched its first topless tower crane built in asia, the mCt 385, with a 20 tonne maximum capacity. the new crane is produced in manitowoc’s manufacturing facility in Zhangjiagang, China, and is especially targeted to customers in asia and other emerging markets. the mCt 385 has a maximum load moment of nearly 400 tonne/metres and was designed jointly by potain engineers in europe and asia. the end result, according to potain, is a crane that offers high-quality lifting performance in a design that suits the needs of regional customers. two types of mast sections are available for this crane. the dJ23 mast section is 2-meter-wide and especially useful for congested jobsites at standard heights and when internal climbing is needed, although a hydraulic cage for external climbing is available too. Bauma China saw a plethora of Chinese designed cranes that could soon be entering exports. sany launched the 3600t sany sCC86000a lattice boom crawler crane. meanwhile Yongmao launched its 100t luffing jib tower crane, stl1800C.

Nabil al Zahlawi of NFT cranes claims that few people in the current are willing to buy cranes. Older cranes are being replaced by rental equivalents.

“Bauma China saw a plethora of Chinese designed Cranes for export” replaced or complemented older lifting methods like see-saws, winches and yards.

tons (8,929 long tons; 9,072t) and have been used to transport entire bridge sections.

1960 AD floating crane Floating cranes are used mainly in bridge building and port construction, but they are also used for occasional loading and unloading of especially heavy or awkward loads on and off ships. Some floating cranes are mounted on a pontoon, others are specialized crane barges with a lifting capacity exceeding 10,000 short

2000 AD The modern crane Modern cranes that stand hundreds of metres in the year and across football fields were made possible by the development of power sources that took load off human or animal power. There are hundreds of different types of crane in use to-day, and in each group arc yet further differences in size, capacity and sphere of usefulness.

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Selling Kit

rfieT-ism irraTional acTions, e T n u o C n ly The war ounTerfeiT goods has lednTo, inso20m06e fa, oirf a million hpaoiruTs aonfy io on co e go wiT incineraT The focus worldwid ThoriTies’ le u p a eo n p a f m o er ons such as g while milli iT shoes-counTerfe ll. shoes aT a

is iT well made?

Beware products that seem flimsy or are obviously poorly made. Quality control is often absent in counterfeiting operations, so you may be able to spot a counterfeit simply based on its workmanship.

Keep a reCord Too good to be true. not all fakes sell at lower prices than their genuine counterparts, but an unreal bargain is one of the surest signs of an un-real product. ask yourself how someone can sell far under other retailers prices.

inspeCT The paCKaging Carefully reputable businesses typically take great care in packaging their products. Beware flimsy packaging, packaging with substandard printing or running colors, or packages that appear to have been opened. in addition, take a moment to actually read the package.

spelling or grammaTiCal errors are common on the packaging for counterfeit goods.

Top 10 – How to spot a fake How do you know what you’re buying is the real thing?

CMME gives you a guide to spotting counterfeit parts.

looK ouT for very plain Boxes most product labels and boxes these days have a whole host of information printed on them, from bar codes to trademark and patent information to recycling symbols. Counterfeiters often don’t want to spend the time to reproduce every detail, so they’ll likely leave some of this stuff off.

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Selling Kit

Look for manufacturer contact information. most reputable companies will provide a phone number or at least an address at which consumers can call them.

Look for a safety certification LabeL. Just about any products that could pose some sort of safety risk will have one or more safety certifications on its label if it’s made by a legitimate manufacturer.

Where’s i t made?

You should also be su spicious if either the no countr packaging Y of origin or the pr will somet is listed o oduct itse imes remo n lf. counte ve a “made products rfeiting r in china” st . ings icker when importing fake

check the manufacturer’s Website. many large companies now have information on their websites to alert customers to possible counterfeit products and to help them detect fakes.

make sure everything that shouLd be there is there. counterfeit products often don’t include supplementary materials such an owner’s manual or a product registration card. sometimes they don’t even include all the parts that should come with the product, or some parts will be from a different manufacturer.

remember because counterfeiters have become very sophisticated as technology has improved, a visual inspection of the product may not be enough to tell real from fake parts.

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

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Sector Analysis

Rock and Role

Egypt’s mining industry faces an uncertain future but there’s plenty of new brutes designed to work in extreme circumstances and under immense pressure

I

t may have caused controversy and consternation in some quarters but the passing of Egypt’s new constitution by referendum should now bring stability to a country desperate for stability.

It may also mean that the country’s mining sector - which has reserves of 48 million tons of tantalite (4th largest in the world), 50 million tons of coal, and an estimated 25 million ounces of gold mostly located in the Eastern Sahara desert – can now begin the process of attracting much needed foreign investment. Although, it may not.

The detractors of Morsy argue he has used the fluctuating political situation in the country to build a government similar to those of his deeply unpopular predecessors.

The military remains a powerful political and judicial force and he has yet to show that he is willing to reform and open up its nationalised industries – many of whom could be cash cows

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

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that attract investors from across the globe. Mining and quarrying could be a pillar of re-building the Egyptian economy but foreign investment that would be used to pay for equipment the sector desperately needs has been a rare mineral resource since the Mubarak government fell.

There are concerns that the Morsy government may re-take the privately run mines and quarry operations to raise money. This could still happen.

It has been almost a year since Fekry Yousuf, Chairman of the Egyptian Mineral Resources Authority (EMRA) said the country would formulate a new mining code and regulation that would protect foreign investors. Since then the country has seen a number of worrying cases of local interference that threaten Egypt’s ability to tap into its valuable resources.

In October, Egyptian publically listed gold miner Centamin’s operation at Sukari, the world’s third largest gold mine, had its fuel supply stopped after

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Sector Analysis

refusing to pay a $65 million fuel bill with the stateowned EGPC which it claimed had been illegally retrospectively charged (ie the regulator revised the price of fuel since 2009). Last month the mine was officially reduced to care and maintenance status while it waited for authorisation to re-start gold shipments. When they finally resumed on 18 December the share price of Cetamin was still off the 49p it had been previously.

The newly revised constitution, wrongly portrayed as a militant Islamist document by some Western journalists, sets out a largely centralised government-led and socialist economy. Heavy users of equipment could the mining industry be facing a future of being controlled by the government?

Centamin’s head of business development and investor relations, Andy Davidson, told Mining Journal , that he doesn’t think so.

“I think nationalisation is not on the table, that’s my personal feeling,” he told the magazine.

“The critical question for us now is getting the gold exports going and then we can resume operations properly.”

New equipmeNt Beyond Egypt, the Middle East picture is a little clearer with many countries like Jordan,Saudi Arabia and the UAE boasting stable and long-established operations. OEMs face the challenge of continuing to develop technology that will tempt them to reinvest Last year, Powerscreen, one of the leading global providers of mobile crushing and screening equipment, launched its new Warrior 1400X screen into the market.

With reduced engine running speed and enhanced hydraulics, the 1400X offers a reduction in fuel consumption of up to 15% in comparison to its predecessor. This can translate into a substantial financial saving for customers over the lifetime of the machine.

China’s Henan Hongxing Mining Machinery Co has launched its Mobile Crushing station, a crawler-type mobile crushing plant, into the global marketplace.

The plant represents a major milestone for China and is able to opertate indepently or by remote operation.

On the large machine front, LeTourneau’s 40.5 m3 L-2350 remains the largest loader, Terex’ 1078t RH 400 the world’s biggest excavator and Liebherr’s T282, with 400t capacity, the mightiest hauler. However smaller and more popular machines continue to be upgraded. Terex’ TR 100 rigid dump truck, profiled last month leads its class alongside Hitachi’s new EH5000AC-3 which is powered by a Cummins QSKTTA60-CE diesel engine that generates 2,850hp and meets EPA Tier 2 emission requirements.

On the excavator front, Caterpillar will be looking to leverage its Bucyrus connections with its hydraulic hybrid 336E which begins shipping in February. Looking to improve its presence, Doosan has unveiled its top of the range DX700LC.

Mining and quarrying equipment can expect a lifetime of continuous work and minimal downtime. It is a vocation not for the feint-hearted machine.

“THE PLAnT REPRESEnTS A MAJOR MILESTOnE FOR CHInA AnD IS ABLE TO OPERTATE InDEPEnTLy OR By REMOTE OPERATIOn” Tel: +966 3 802 4938 Fax: +966 3 826 9894 www.ahqsons.com info@ahqsons.com

January 2013

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57

The Last Word nsideration, The main co truction from a cons is going to view is, who city?

BR M ild bu

Bac

58

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mark in will se t a new at th e yl st fe enor mous br and-new li llowing the fo , es yl st fe ed b y Emaar. high-end li Hills ’ develop es at ir ith m ‘E of ere greeted w success uncements w some no y, an it e un ov m ab m The rs of the co be em ill m e m those who w caution by so d with joy by an rs s. he ce ot ti cynicism by s to tender no and Request irector of be getting RFP Managing D e th is an le anomaly Nic holas Mac points out an e H . e on gi re you split th CBRE in the i oper ates. If ba u u D yo at il th ta in the w ay of fice and re residential, space is marke t into rrently of fice Cu s. k lt su re g over all stoc find dif ferin rcent of the pe 47 t ly ex gh n u rcent showing ro rise to 50 pe ed. This will pi ge of good f cu ta o oc or n n sh u o e cti u tr s a genuin n is o e c er e th proper ties t th Can year. Ye e rising for ar ts n re lp e d h an ere is a lot of shid City of fice space a R d Road. “Th in ye b Za d e kh m ei enter the Moham near the Sh for the would like to m at o th o b ey w rtunity is on e m n of fshore stment oppo ve in e kick-star t a th t e t bu nw Dubai marke ubai just whe D in ere.” y th tr ot s fault, it n u y d pl in r? sim e v o s as not Dubai’s w a w 08 20 m a of h dre onomic cr isis The cras the world ec thought the om fr t u llo fa ssing across was the e USA and pa th in g pears to be in at or igin year Dubai ap is Th s. ru vi cy Moody’s Europe like a e rating agen th t k u B . ck ba mmercial Ban bouncing irates NBD, Co e th Em at of th g r in de ad downgr k is a remin n ba ed q m re am h on as oh M weigh eikh M of Dubai and continue to 2012 H.H. Sh Minister and the last boom n November e of im s Pr bt , de um d ba -Makto , onomy. bin Rashid al Arab Emirates As Nic holas the Dubai ec of the United t is en It . id ty es re, though.

Ci Pr d su hi is Vice as g is a sort R in n th bi One ts out Dubai ohammed in e M po th d E ce in R d un CB ce no of an vestors: “All t announ Maclean, MD r potential in ect, the larges fo oj t i pr gh ve Li si st as am choose Duba of Middle Ea vestors will need to for years. in ai lf is al ub Gu u It D . eq an st in g bi e Ea in ra bl e A la Middl things be facilities avai tr y into the tions for en bi ve ri of am t ar re in “The current ey tu po th r fu e when as thei in line with th af f here and social be scaled up to attract st med said. have a good sy ea r am to aa oh em M Em th n kh r ei ee fo y Sh tw it ,” be il ” ty e y. ab ci ur e dl nt the y fr ien there is th ent - a joint ve ted fe and famil c The developm s, will be loca o Dubai is sa ls ng it hout specifi A di .

“W ol fe : li H l es ai A re d ub ag D an d d er bu an oa A yd R H es Proper ti Emirates of fered by Wael Allan of rms Zayed Road, ch as those te su kh in ei s, e ce Sh ve gu oi ti n va n ch ee betw ent was the firs t financial ince e announcem naturally be ing force, Khail Road. Th nce it, what was the dr iv Dubai would here.” i, p ab u h t D fina o w ant to se h w ing es at or of who would e Sheikh mak for corp details. is whet her th Mohammed to pt on kh ti m ei te es Sh and specific , at qu rk e an Th R city is Hyde a public pa B ’s is M t on ar ke nd ld. li he Lo or ts s w it an en At rger th i to the announcem 30 percent la ai will talk up Duba d ub be D b of an ld jo at p ou e m th w th pu ns id ’s sa t mea : “t hat pr ime the e developmen emphatically has – but wait l e es h al re m ly ag n O ng an Park. And th pi ll g.

Wael A be doin rgest shop ld a la ou ’s be ld sh to e or g h w is in e e at wh and h have th o, there is go a ruler. It ’s bai is going y has that. N of where Du on actly the si ex Dubai alread vi ’s r It ea cl d. a ls to ss forw ar te re ho e. og w on pr e ne er He is our d iv gg re y. dr bi there to be a hund . her countr to ai ot g y ub in D an go in e of ar ve d hea There e world.” ady ha same as the ndred we alre ts Dubai to th rne hu en bo er es ur at pr fo w e re h s th it u add to stem w he MBR City leader and th d the e is a canal sy RE agrees: “T ce er CB th un of ly no n quires te an ee ra Gr so Sepa ess al tegy which re Matthew or t. His Highn ng term stra & Opera lo m ing a eu as y rl us ph ea M d cl rt ne public transp project is Modern A cally plan ai di ub ho ‘D et e m d th ke e mar t ubai. launch of a sensible an Downtown D er supply to th in liv t’ de ic to tr ars.” is D em st sy House ove ty to thir ty ye ks af ter the ab the next twen er ld ov ou sh Literally wee s, last word t His Highnes Perhaps the A flower grows med ect announcemen oj pr t eikh Moham rs Sh fi s, om ai Hill come fr in Downtown “Most : um ’ unveiled Dub to ty ak ci within the Rashid al-M y n it bi ‘c . w ne e MBR City represents a revival in th , we do things of people talk t. en ey pm Th lo e. ve of the Mohammed Bin Rashid ev de e achi d They plan, w We Gardens project, first announced in The new gate move ahead. e e w id , ov te pr ta l si il he w y it n n u 2008. The 2008 plan suggested the comm f that whe residences, e are living proo Gardens project would cover 74 square ultra-luxury ve the courag e gs ok man bein ha ansform the besp hu to ed kilometres, and cost $60bn (Dh220bn). n ig es tr d ent to ns of the and commitm It is not yet clear how closely the consider atio ed ity, there is al el ll re ra to pa in n ly u new plan is based on that. a dream . owners. Tr u t can stop them ential projec nothing that in the resid e th of t his tory developmen a ills ushers in H i ba city, Du

d r a o b g n i w k to t he dra

January 2013

I