Construction Machinery ME January 2016

ISSUE 51 016 JANUARY 2

the yeAr A2h0e1A6D,

imes in ros t h g u o t stry P say indu

t er builD it bentg ’s

Liugo driving r quaLit y Push fo PLus

rAW POWer iS NeWS & ANAltytSiNg k it SPO A ND Much MOre

ction u r t s n o smart c

h c e t e r u t fu

s r o t c a r ont c t s o h row o r C o M m A F o t d n ng a i E d l C i o u V b l n Vo no o s s e l a for

Dominic De Sousa 1959-2015

It is never easy to say goodbye to a friend and colleague. When that person is the owner of the company and the driving force behind its growth and success, then the task is almost impossible.

CPI Media Group's founder and publisher, 56-year-old Dominic De Sousa, died doing what he loved best – singing and entertaining people, at the BBC Good Food Middle East Awards on December 16 – which has been postponed until further notice.

His publishing empire with more than 25 magazines, web portals and vertical industry awards, was founded two decades ago.

Born in 1959 in Kenya to Goan parents, he lived what he later recalled as an idyllic childhood, full of sunlight, happy people and nature. A passionate lover of wild animals, it was here that the rebellious and independent streak that made him so successful in business was born.

When he was 11, the family moved to Wimbledon in South London and he encountered two things which he spent the rest of his life fighting: cold, wet weather and racism. The experience of the latter, he later admitted, made him unusually sympathetic as an employer to the problems of his staff, a large number of who have been with CPI for years.

After studying biochemistry at the University of London, De Sousa joined Reed Business Publishing in London as an advertising salesman on Middle East Computing, thus laying the foundations for his future career. He was a sales natural, combining an empathy with his clients with a killer instinct for closing a deal.

Soon poached by London-based Alain Charles Publishing, he launched Computer News Middle East, which would form the basis of the CPI empire when he later bought the title and started his own company.

Success followed from a start-up in a small back office. Today, the company ranks as one of the leading B2B players in the region, thanks to his drive, his entrepreneurial spirit and his belief in people.

In sharp contrast to other publishers, De Sousa wanted his staff to succeed, encouraging them to become his business partners rather than employees and the simple CPI start-up is now a web of intertwined companies and relationships that he forged and held together. Never content with the status quo, he would constantly challenge what his staff were doing, encouraging them to seek new opportunities while opening new doors for others.

Although a private man, he seemed happiest when he was on stage performing with a group of musically inclined CPI employees. Early on in his career, he had sung with a semi-professional group and he later reignited that passion by singing at CPI events.

For those of us who remain at CPI, he is – quite simply – irreplaceable. The number of lives he touched across multiple industries in the Middle East and Europe is humbling and we, his colleagues, have been overwhelmed by the messages and memories of those who knew, respected and loved him.

One of a kind to us, he was always, just Dom. He will be missed more than we can express but his legacy lives on in the magazines he helped create and nurture.

4

CONTENTS

JANUARY 2016 10_NEWS The latest news from across the region and further afield.

18_uNdER ThE hAmmER CMME heads along to take the pulse at the big Ritchie Bros.

December auction in Dubai.

24 20_hEAvy hiTTERS: iN chARgE Of quALiTy

16 N Sp oT TeoDrIk Ne w y tower luffing jib

David Beatenbough of LiuGong on how he’s worked to optimise design, manufacturing and quality at the Chinese OEM.

24_BuiLT TO imPRESS FAMCO and Volvo CE stage a major event to showcase a number of new machinery launches, and present their customers with a joint dealer + manufacturer presence.

16

herr A new Lieb er site mped tow ra c a n o e cran an. in Manhatt

30_2016: ThE yEAR AhEAd With expectations that 2016 will be a tough year for the industry, CMME speaks to industry pros about what the year has in store.

r e w o raw p 36_ NEW R The latest

E L E A SE S

e How to low

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achinery.

struction m

d of con m the worl releases fro

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18

costs.

omer cE T i m E aintain cust m y e th 44_SERvi w o igh in on h ealers we Two top d support. after-sales h g u ro th n satisfactio

N ch fuSiO E -T h g i h 48_ b-site. laborate jo Potain cran

es on an e

48

20

All-steel casing Suitable on extremely rocky surfaces Extra-long tread life High puncture resistance Outstanding stability

bkt-tires.com

6

ONLINE JANUARY 2016

L A U N C H PA R T N E R

CONSTRUCTION MACHINERY ME’s home on the web MOST POPULAR

1

EDITOR'S CHOICE

READERS' COMMENTS

Saudi Binladin Group

Damac removes Trump

“It was interesting to read about yet more allegations of labour exploitation in Qatar (“Qatar labour abuses still ‘rampant’ – Amnesty”, December 2). Amnesty International says there are still “appalling conditions faced by most migrant construction workers” in the country. Whatever the truth, what is clear is that Qatar needs to step up its reforms to the kafala sponsorship system if it is to avoid future allegations like this in 2016”

name from Dubai golf site

Comment to story “Qatar labour

to lay off 15,000

workers – Reuters Possible layoffs come amid uncertainty caused by oil price slump

2

ME Consultant Awards: Winners announced

More than 200 guests attended event at Jumeirah

PHOTO GALLERIES

In pIctures: BIg project Me AwArds wInners ALEC’s Kez Taylor and Brookfield Multiplex were among the big winners.

See photo galleries at: meconstructionnews.com/photos

Emirates Towers Hotel

3

Move apparently prompted

abuses still ‘rampant’ – Amnesty”

by presidential candidate’s anti-Muslim remarks

4

READER POLL

What was the mood like at The Big 5 construction show in Dubai?

Gulf construction in 2016: Experts give their outlook

29% 13%

Industry looks to year ahead after “interesting and challenging” 2015

5

”Dramatic” decline in GCC construction optimism

VIDEO

18-tonne VolVo truck... drIVen By A four-yeAr-old

more disputes than expected

Four-year-old Sophie drives an 18t Volvo FMX – with the help of a remote control.

this year, survey finds

See videos at: meconstructionnews.com/videos

Longer payment periods and

Upbeat: Lots of deals on the table

No change: About the same as last year

16%

42%

Good: Business was brisk

Slow: There’s a gloomy outlook for 2016

Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com

8

EDITORIAL JANUARY 2016

GROUP FOUNDER DOMINIC DE SOUSA GROUP CEO NADEEM HOOD

PUBLISHING DIRECTOR RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 EDITORIAL DIRECTOR VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5713

EDITORIAL CONSULTANT EDITOR STIAN OVERDAHL stian.overdahl@cpimediagroup.com +49 176 271 203 87

2016 resolution?

Disrupt

SUB EDITOR AELRED DOYLE aelred.doyle@cpimediagroup.com MARKETING & ADVERTISING COMMERCIAL DIRECTOR MICHAEL STANSFIELD michael.stansfield@cpimediagroup.com

With prospects of gloomy times ahead in 2016 for some sectors of the contracting industry, it’s worth looking at the storm clouds to see if there are any silver linings.

In fact, as many in the Gulf construction industry know – especially those who have been around long enough to witness several of the cyclical downturns – difficult trading periods are a good chance for new businesses to move into the space and seize market position.

As markets retrench and dynamics change, unwieldy companies no longer have a product that is matched to the new environments. Companies that are more nimble – whether because they’re smaller and can shift their model quicker, or have more visionary leadership – are able to adapt and thrive.

In the machinery sector, we’re likely to see more emphasis on rentals, giving contractors more flexibility when it comes to fleet size, so that they’re able to downsize quickly in case there’s a dry spell.

And with profitability key for survival, we may see that contractors who have invested in their fleets and in operator

training are able to get their best returns on their projects. After all, efficiency – meaning fewer machine hours – results in lower costs, such as manpower, fuel and wear parts, while it also means the fleet can move on to the next job quicker.

Meanwhile, getting a reputation for efficiency won’t hurt during the tender stage either.

I’m not one for new year’s resolutions, but my suggestion for 2016 is to invest in one piece of kit which the dealer promises will boost your fleet efficiency. Technology is bringing enormous advantages to our lives, and in the CMME space, staying ahead of the technology curve is essential.

+971 4 375 5497 MARKETING MANAGER LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498

DESIGN ART DIRECTOR SIMON COBON CIRCULATION & PRODUCTION DISTRIBUTION MANAGER SUNIL KUMAR sunil.kumar@cpimediagroup.com +971 4 375 5476 PRODUCTION MANAGER VIpIN V. VIJAY vipin.vijay@cpimediagroup.com +971 4 375 5713

DIGITAL

Stian Overdahl Consultant Editor, CMME

WEB DEvELOPER MOHAMMAD AwAIS WEB DEvELOPER UMAIR SHAMIM PUbLIShED by

Registered at IMpZ pO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com

PRINTED by printwell printing press LLC © Copyright 2016 CpI. All rights reserved. while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

AFGHANISTAN FAMCO (Al-Futtaim Auto & Machinery Co. LLC) + 971 4 213 5100 (UAE) famco@alf uttaim.ae BAHRAIN FAMCO (Al-Futtaim Auto & Machinery Company) + 973 1783 0226 famco.bahrain@alfuttaim.ae IRAQ Sardar Automobile and Machinery Trading Co. + 964 750 344 4701 ihsan@sardarmachinery.com KUWAIT Al-Zabin International Group Co. For Heavy Equipment + 965 2433 4721 alzabin@alzabinkuwait.com LEBANON AMTRAC (Abdelmassih Trading Company) + 961 3 425625 michel@amtrac-lb.com OMAN GENSERV (General Engineering Services Est) + 968 244 90755 sales@genserv-oman.com PAKISTAN VPL Limited + 92 42 111 875 875 uzair.shahid @panasiangroup.com QATAR Arabian Agencies Company WLL + 974 44 50 0925 araco@araco.com.qa

THE NEW L120G with z-bar linkage

LOADS MORE... and faster

SAUDI ARABIA FAMCO (Al-Futtaim Auto & Machinery Co. LLC) 800 124 4414 famco@alfuttaim.sa SYRIA Nassib Saad Est. Trading & Import + 963 11 222 5432 i.saad@saad-syria.com TURKEY Ascendum Makina + 90 216 581 80 00 info@ascturk.com UAE FAMCO (Al-Futtaim Auto & Machinery Co. LLC) 800 FAMCO (32626) famco@alfuttaim.ae YEMEN Elaghil Trading Co. + 967 1 207 470 elaghil@y.net.ye

The new L120G with z-bar linkage gives you loads more: more productivity, more fuel efficiency and more uptime. Engineered to give optimum bucket fill, the L120G z-bar delivers superior productivity, with the z-bar lifting arm system working in perfect harmony with load sensing hydraulics and the Volvo attachment range. An optimised powertrain and Eco-pedal function contribute to outstanding fuel efficiency, coupled with easy service access, for lower operating costs. The new L120G z-bar – maximum productivity and optimum efficiency.

Building Tomorrow.

Munich 11-17 April Hall C4:327 Outdoors: FM510

S W NE 10

bulldozers

Dressta appoints regional manager for miDDle east anD africa

ojects, r p w e n , offices w e n , s e hin arounD k o new mac o l e tives – w onth a m i t s i i n h i t w ne at’s new h w t a n the regio

LiuGong Dressta has appointed Tolga Ural to the role of regional sales manager for Middle East and

GULf CEMENT

Africa (MEA). Ural joins Dressta off

prICES fALL 10%

the back of over 10 years in sales,

Global grey

marketing and business development

cement prices

roles in the agricultural and

fell 11% year-on-

construction equipment industry.

year, a report by

emphasis on dealer and key account

found, with a near

management and strategic sales

10% month-on-

for CNH Industrial in MEA. where

month decline

he helped to establish and maintain

in the Arabian

long-term relationships within

Gulf countries.

individual countries, including with

The figures

government officials, ministries and

were released

UN representatives, gaining in-

as part of the

depth insight into varying national

US-based market

needs along the way. In addition,

research firm’s

Ural brings his expertise in dealer

Global Cement

network development across the

Trade Price

globe, creating new channels

Report (GCTPR),

and appointing new dealers. He

which assesses

has participated in agricultural

the monthly

development programmes for

worldwide trade

Africa, and has a track record of

of grey cement,

successful brand implementations

white cement,

across the continent.

Equipment can reduce construction waste

clinker and slag.

Tadweer, the Centre of Waste Management in Abu Dhabi, is looking to set GCC-wide standards for construction and demolition (C&D) waste as part of a waste management master plan in the UAE capital. Recycling C&D waste conserves raw material, energy and water, while also cutting greenhouse emissions. In addition, recycled material is much cheaper and can be used in infrastructure projects.

“Construction projects are rapidly increasing in the region with Expo 2020 preparations in Dubai and the World Cup 2022 to be hosted in Qatar. With these developments, municipalities across the GCC are recognising the need for robust

strategies to minimise the negative impact of large amounts of C&D waste,” said Eisa Saif Al Qubaisi, GM of Tadweer.

The Waste Management Master Plan being developed by Tadweer for Abu Dhabi includes studies on best practices, laws and policies related to waste management and cost-efficient processing. The plan will also propose methods to reduce commercial and industrial waste.

“As part of the master plan, despite the growth in C&D waste that increasing construction projects are likely to cause, we are aiming to reduce C&D waste levels,” said Dr Salem Al Kaabi, deputy GM of Tadweer.

Most recently, Ural worked with an

CW Research has

Globally, the

“I am excited to have joined Dressta simply because of the

trade of cement

aggressive growth plan that the

products declined

company has,” said Ural. “There

in both volume

are so many opportunities and

and price in the

places to go, and the potential

third quarter

is there for Dressta to become a

of 2015. The

key player globally. Dressta is a

slow progress

hungry brand that can change the

of the global

construction industry for the better

economy means

within the next couple of years.”

that worldwide

“It is with great pleasure that

cement prices

we welcome Tolga to the Dressta

were projected to

team,” commented Howard Dale,

decline by about

Dressta vice president of Global

2.7% in 2015.

Sales. “Tolga is vastly experienced within the agricultural and construction equipment industry, and his contributions will be vital in further establishing Dressta’s presence in the prosperous African and Middle Eastern markets.”

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12

NeWs rouNd-uP JANUARY 2016

eXPANsIoN

khalifa port set for expansion

JLG auctions off 100,000th telehandler

ETIHAD rAIL GIvEN opErATIoNAL GrEEN LIGHT The UAE’s Etihad Rail has been granted the safety authorisations to start operations on the first

port operator Abu Dhabi Terminals

phase of its $11

has announced that Khalifa port

billion network

Container Terminal is ready for

and commence

the next phase of expansion

commercial

and that new equipment will be

operations

added in 2016 and 2017 to keep

between Habshan,

up with demand for services.

Shah, Mirfa and

JLG has auctioned off its 100,000th telehandler at a charity auction in Seville, Spain. Since its unveiling in April the 100,000th JLG telehandler – a 4017RS sporting a custom colour scheme comprising 100,000 small JLG logos – has toured Europe, travelling to JLG sites to thank employees.

In addition, the machine has been available to European customers for

UTICo To INvEST $327M IN UAE UTILITIES Ras Al Khaimahbased utilities company Utico has announced investments of nearly AED1.2 billion ($326.7 million) in projects across the emirates to meet growing demand for power and water.

sales demonstrations.

The dinner in Seville capped a two-day event celebrating the milestone.

JLG President Frank Nerenhausen joined customers for the dinner.

“We’re excited to mark this significant milestone with the commemorative JLG telehandler,” said Nerenhausen. “We’re also happy to use the occasion to recognise the loyalty of our customers and thank

them for their business.

Without them, we could not have achieved this milestone and the success it represents.”

The winning bid was submitted by Riwal, a Netherlands-based rental firm. At its request, €50,000 of the proceeds from the €88,000 winning bid will go to the Alpe d’HuZes foundation, which raises money for cancer research.

Abu Dhabi’s main container port

Ruwais. The safety

is currently at 78% of its handling

authorisations

capacity, and the next two years will

accredited Etihad

see Abu Dhabi Terminals enhancing

Rail’s operations

its operational readiness through

partner Etihad Rail

infrastructural development to

DB to commence

meet expected growth. 2015 was

commercial

another good year for Abu Dhabi

operations on

Terminals, which handled an

the 264km route,

estimated 1.5 million TEU containers,

which forms part

up from 1.14 million in 2014.

of the wider UAE

Three additional ship-to-shore

network spanning

(STS) gantry cranes and 10 automated

1,200km.

rail mounted gantry (ArMG) cranes will be added to increase the terminal’s capacity and satisfy future demand. Annual throughput at Abu Dhabi’s container port will grow to 2.5 million TEUs at the completion of this phase of the expansion.

Zimba bw e a n p r oduc e r bol s t er s t ere x t ruc k s f l e e t Leading Zimba

bwean granite ag gregate producer Davis Granite has rece ntly added a TR45 to its fleet of four Terex Tr ucks rigid hauler Now operating s. at its Bulawayo an d Harare mines the fleet include , s two TR45s an d two TR60s. Th machines are ha e uling approxim ately 80,000t per month of sto ne products, 12 hours a day, five days a week , with the robust TR45 maximum payloa d of 41t proving ideal for the job at the Bulawayo quarry .

13

Kobelco Construction Machinery and Cranes to merge April 1 Kobe Steel Ltd and its wholly owned subsidiaries Kobelco Construction Machinery Co, Ltd and Kobelco Cranes Co, Ltd have decided to merge the businesses of Kobelco Construction Machinery and Kobelco Cranes together effective April 1, 2016.

The Kobe Steel Group’s construction equipment business saw Kobelco Construction Machinery spinning off the crane business in 2004. Following the establishment of Kobelco Cranes, these two companies have specialised in their respective fields in

Japan and overseas.

Under its medium-term business plan launched in May 2013 covering fiscal years 2013 to 2015,

the Kobe Steel Group said it would strategically expand its machineryrelated businesses.

This merger is

projECTS World eXPo

worTH $200BN

expo 2020 Dubai awarDs 72 new tenDers

IN SAUDI pIpELINE Saudi Arabia is

anticipated to improve business efficiency, strengthen product development capabilities and bolster global development. It will also enable Kobe Steel to pursue new possibilities from the synergy derived from the accumulated technologies of its excavators and cranes.

Considerations will continue with regard to the consolidation of domestic and overseas locations.

Kobelco Construction Machinery, which has around 6,745 employees, will absorb the smaller Kobelco Cranes, which has some 884 staff.

rTA AwArDS $129M roAD projECT Dubai’s RTA has awarded a contract for Phase II of the Academic City Road Project. The new road, which costs about $129 million, extends from the Dubai Al Ain Interchange up to Al Yalayis Road, and is expected to be completed in the last quarter of 2017. The project comprises the construction of a road with four lanes each way, extending 25km, starting from the Dubai Al Ain Interchange up to Al Yalayis Road, and construction of a bridge and temporary roundabout.

Komatsu de-tiering kits available

pressing ahead with $200 billion of construction projects over the next two years, despite the impact of low oil prices and evidence of a recruitment Expo 2020 Dubai has

which is fitting out offices at

slump. Saudi is

awarded 72 new tenders

the Expo site in Dubai South

“likely to remain

through its dedicated online

in preparation for the next

the dominant

eSourcing portal to local,

stage of development in

construction

regional and international

2016, and Miraj Media and

market in the GCC

companies, as work steps up

Mixari Ladies Tailoring, both

for the foreseeable

on the global mega-event.

of which worked on the UAE

future”, according

Amongst the winners were

Day celebrations at Expo

to Ibrahim Al-

UAE-based online recruiter

2015 Milan in october.

Moaiqel, DG of the

Bayt.com, global expertise

other SMEs working

Human Resources

design company Thinkwell

with Expo include local

Development

Group and open innovation

firm Time Lapse Middle

Fund (HRDF).

experts Nine Sigma.

East, to produce time lapse

A number of home-grown

photography of the site’s

small and medium sized

construction, and panmed

enterprises (SMEs) have also

Energy, a jordanian company

attracted business. These

which will provide hybrid

include Delma Interiors,

generators.

Komatsu Europe has launched a conversion process to support current and future demand for pre-owned EU Stage IIIB Komatsu machinery in lesser regulated countries where Ultra Low Sulphur Diesel (ULSD) fuel is not available.

The conversion process allows Komatsu machines to run properly in territories where diesel fuel has higher sulphur content than in Europe. The Komatsuapproved modification process will be carried out

by authorised Komatsu dealers.

“Certain EU Stage IIIB engine technologies may not operate at peak performance levels in lesser regulated territories where non-ULSD fuel is used.

The Komatsu-approved conversion process allows Komatsu dealers to provide a quick and easy solution to our customers without compromising product performance,” said Jim Venerus, Komatsu Europe Product Marketing DGM.

14

NeWs rouNd-uP JANUARY 2016

cyber securIty

fake ceo asks office to pay aeD300,000

Jaidah announces exclusive Still distribution in Qatar

longstanding relationships with major international manufacturers, making us perfectly suited to satisfy the high demand for equipment related to Qatar National Vision 2030. Our dealership agreement with Still will enhance our efforts to facilitate further growth in Qatar’s logistics industry.”

Frank Mueller, vice president CEE and dealer business at Still, was optimistic about the Qatar market.

“We are delighted with this new dealership, and we are looking forward to having a positive impact on Qatar’s growth by delivering our high-quality products.”

boom boos t e r d unle a she ed a CC

bilis up has mo Sarens Gro with the crane fitted r le aw cr distillation 8800-1 a 641t, 87.1m ft li to er st n of the US. boom boo Coast regio lf u G e ads th 92 trailer lo column in convoy of a ed km ch 32 at p for the 0 Sarens dis mponents co e an er cr w -1 er ’s lo of CC 8800 oom Boost site. The B e out to ar fl trip to the ts r segmen te ap ad er om and upp andard bo early 3x st n , th id ra w a 10m structu l ce system an h en to , width lift d increase integrity an capacity.

email account had

nearly duped out of

been hacked.

300,000 dirhams, after

Hackers have been

internet fraudsters

getting smarter by the

managed to hack the

day. In this instance,

CEo’s email account.

the online scam artist

when the finance

had hijacked the chief

ABU DHABI GrEEN

department head came

executive’s email and

LIGHTS projECTS

to work on Sunday,

asked for funds to be

worTH $4.8BN

he found a mail from

transferred, terming

Projects worth

his CEo, asking him to

the transaction an

AED17.5 billion

process a payment of

outstanding payment

($4.8bn) have

AED300,000.

to a bank account

been approved

Jaidah Industrial Supply, part of Jaidah Group in Qatar, has taken on exclusive distribution of material handling equipment manufacturer Still. Known for its range of forklifts and logistics solutions, Still is headquartered in Hamburg, Germany.

The new partnership was celebrated at a launch event in Doha, which included choreographed demonstrations of the machines in action.

Speaking at the event, Ayman Ahmed, managing director of Jaidah Equipment, said: “Jaidah Group has a history of

A UAE company was

just to be sure, the

in the jebel Ali,

by Abu Dhabi.

finance head called

Dubai branch of a

Allocated

his CEo and asked

multinational bank.

capital includes

him what the payment

for a week, the fake

AED5.9bn

was about. To his

CEo continued to send

for housing,

surprise, the executive

emails asking for the

AED4.3bn for

replied that he had

payment. finally, after

infrastructure,

sent no such email

playing along for a few

AED1.8bn for

and did not require

days, the management

education,

finance to process any

notified the bank in

AED614m for

payment. Traditional

the UAE mentioned in

governmental

communication and

the email and officials

facilities and

a bit of fact-checking

began investigating the

AED644m for

revealed that the CEo’s

fraudster’s account.

social facilities Three key contracts were approved for infrastructure works at the Emirati Neighbourhood Project.

ATLAS CopCo ACqUIrES vACUUM pUMp MANUfACTUrEr Atlas Copco has acquireed Capitol Research Equipment, a US parts and service provider for vacuum pumps.

Known as Capitol Vacuum Parts, it has 15 staff and sells spare parts globally for vacuum pumps, while also providing repair and service in the US. It had revenues in 2014 of about $3.1m.

Showroom Doha - Industrial Area: Main Industrial Area Road.

T : 44638804 F: 44602440 E: heavyequipment@jaidah.com.qa

Service Doha-Industrial Area: Gate 57, Al Wakalat Street.

T: 44638866 F: 44602440 E: heservice@jaidah.com.qa

Parts Doha-Industrial Area: Gate 69, Al Wakalat Street.

T: 44638854 F: 44606290 E: heparts@jaidah.com.qa

www. Jaidahhed . com

Quick Service & Parts Al Khor Infront of Al Khor Mall T: 44170388 F: 44170351

Watch Us On

16

Liebherr 710 hC-L 32/64

W

hen contractor Sorbara Construction was shopping around for a high-capacity tower crane for the MoMA Tower in New York City, they were looking for a crane that featured fast load cycles, a low external profile and clean operation for the compact job-site.

Liebherr’s dealer in North America, Morrow, pointed out the brand new 710 HC-L 32/64 luffing jib, launched in late 2015.

The luffer was designed to meet the expectations of contractors in high-density urban environments, and two cranes were chosen on lease for the cramped site, where Sorbara will build the 76-storey building in Midtown Manhattan. With a height of 320m, the skyscraper will be one of the highest buildings in the city.

The first crane was erected within 17 hours of delivery to the job-site, keeping Sorbara on schedule and under budget for this phase of the project. This crane will have a 45m working radius and will climb to 131m.

The second 710 HC-L crane will be erected during the summer of 2016. This luffing jib crane will have a 60m working radius and will climb to 216m. This crane will be mounted on a platform outside the building on the 20th floor and top climb to a height of 320m. The first crane will be used to erect the second crane, and when the first crane has completed its tasks, the second crane will dismantle the first.

Designed by Jean Novel, the MoMA Tower will house 139 luxury apartments in its 76 storeys. The 710 HC-L will be integral in the construction of the tower, helping place 7,357t of reinforcing steel and 37,348mÂł of concrete. When completed, the MoMA Tower will bring 628,025sqm of mixed-use space to downtown Manhattan.

17

The erected 710 HC-L 32/64 luffer is the first of two that will operate on the New York tower, on a narrow and tight work-site.

P.O.Box: 28037, Abu Dhabi - United Arab Emirates T : +971 2 403 7555, F : +971 2 673 0778 E : marketing01@nftcranes.ae

18

NEWS ANALYSIS JANUARY 2016

Under the hammer

Ritchie BRos. AuctioneeRs hAs hAd A positive yeAR in the Region despite mARket unceRtAinty, with oveR 2,000 lots sold At its lAtest event in duBAi. JeRushA sequeiRA RepoRts

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t’s the first day of the Ritchie Bros. December auction in Dubai, and the company’s Jebel Ali facility is abuzz with activity. Red numbers flash on screens under the stage at the auction theatre, indicating the bidding price in USD and AED of a Caterpillar dozer going under the hammer. The theatre reverberates with the booming voices of the auctioneers on stage, as some of the most valuable items are presented to bidders, many of whom have travelled from overseas to attend.

2015 has been a good year for Ritchie Bros. The company has had record attendance at all its Dubai auctions, says Karl Werner, managing director for the Middle East, India and Africa, in an interview in his office directly overlooking the auction theatre. “We enjoy doing business here in the GCC, and it’s been very positive for us and for our customers as well.”

The three-day event last month had a turnout of over 940 registered bidders and a total of 2,245 lots sold. Big-ticket items included a 2013 Caterpillar 14M motor grader sold for $220,000, a 2011 Caterpillar 988H wheel loader that sold for $240,000, a 2005 Komatsu D155A-2 crawler tractor that went for $112,500 and a 2011 Komatsu PC400LC-8 hydraulic excavator that sold for $116,000.

Other highlights were a 2009 Tadano ATF-110G-5 all-terrain crane that sold for $345,000 and a 2011 Mercedes-Benz Actros 4141 concrete pump truck auctioned for $157,500.

Even with the positive figures and high attendance at the auctions, there’s no denying that the construction sector as a whole has been hit by a wave of uncertainty. The industry in the GCC in particular has seen a pronounced decline in optimism, with only a third of respondents indicating they were positive about 2016 in a recent survey by law firm Pinsent Masons.

“We’re seeing uncertainty in the market, and everyone is aware of what’s going on politically and with the energy market,” Werner says, but points out that Ritchie Bros. is able to attract buyers worldwide, which helps make up for any discrepancies or uncertainties in the local market.

Moreover, there is a strong element of trust behind the auctioneer’s success, as customers know that the company takes the time to

vet buyers and ensure that documentation is correct and the ownership trail is clean.

Werner’s comments are echoed by a customer at the auction, David Weiss, director at California-based Sierra Equipment Company, which deals primarily with heavy fabrication and industrial machinery.

“They take all the question out of it,” he says, recounting experiences of buying equipment overseas in the past, when the only way to buy a machine was to pay for it after it had been loaded onto a ship. “If you paid earlier, you might never see the piece of equipment. They would just take your money. That’s a big problem when you’re a foreign buyer in a foreign land. You don’t know the rules.”

Weiss, whose company leases equipment into the Middle East, has a relationship with Ritchie Bros. stretching back over three decades. “Their name is trusted. If we had equipment consigned here, I know in 21 days, there’ll be a cheque in the mail for whatever was bought. That’s a big deal in this business: honesty and integrity.”

Although Weiss’ company was formerly involved in equipment selling, the digital age has changed the rules of the game.

Customers can now easily look up how much their equipment is worth online and sell it themselves. “The internet has changed the way this whole business is done. Ritchie Bros. has taken advantage of that, and they’ve optimised that.”

The internet has had a huge impact, Werner notes, and while the majority of customers do prefer to be physically present

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“The internet has changed the way this whole business is done. Ritchie Bros. has taken advantage of that” at auction sites, a growing portion of the firm’s business is going online. Currently, over 40% of equipment is sold online, with bidders participating remotely. “It’s almost like being here live. You hear the auctioneer, you see photos, everything is live.”

While demand for equipment has been fairly consistent, global economic factors are taking their toll and mining machinery in particular has been affected, Werner notes. “It definitely takes more effort to market those items and to actually sell them.”

There is currently a lot of activity in African markets, which are managed out of the Dubai office. The auctions held in March and December last year had a good deal of equipment out of eastern and southern Africa. “We’re sourcing a lot of buyers out of Africa.

There’s a big demand, and we’re using that to balance out lower demand in the GCC. We’re focusing marketing dollars in Africa and Asia to bring buyers here to help support pricing.”

Despite the current uncertainty in the GCC, however, his outlook remains positive. “You’ve got Expo 2020 in the Emirates, you’ve got projects in Qatar, and there’s lots of projects going on in Kuwait.

There’s lots of work. It’s not going to go away.”

This positivity is well reflected in the auction theatre below, where a lot more seats are occupied and the atmosphere is charged with energy. Most customers are keenly watching the action on stage, but many make conversation on the sidelines – the auction is also a valuable networking opportunity, after all. Bidding activity is in full swing now, and the numbers on the screens are rapidly getting bigger.

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HEAVY HITTERS JANUARY 2016

in charge of quality Since joining Liugong nine yearS ago, Vice PreSident daVid BeatenBough haS taken charge of imProVing itS Product deVeLoPment ProceSSeS

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ith extremely difficult conditions in the Chinese domestic market, the country’s major OEMs have continued to intensify their export strategy. With rationalisation of manufacturers, the big guns are firmly settled into their position as exporters, and in some cases are managing to dominate overseas markets with their potent matching of price point and quality.

Among these is LiuGong, best known in the Middle East for its earthmoving equipment – wheel loaders, excavators, pipelayers and bulldozers – through Polish subsidiary Dressta.

One of the key players in staking out LiuGong’s development has been David Beatenbough, vice president for research and development and chairman of LiuGong Dressta Machinery, an industry veteran who joined LiuGong in 2007, having formerly worked for Case and CNH. Speaking with CMME, Beatenbough sought to distinguish LiuGong’s approach to developing its equipment range from that of other Chinese manufacturers.

“Any time the market goes into a downturn is the time that you’ve got to sharpen your management skills, and become more focused on your business. That doesn’t necessarily mean that we take away from the development of different products, but we do look at whether we are as efficient as we should be in all areas of our business.”

He says that LiuGong was able to identify the coming downturn in the Chinese market earlier than its competitors, in part because of the presence of experienced international staff on its payroll who had experienced similar downturns in other markets, “who are used to the cyclical nature of this business”.

“It was a case of ‘This is coming, and you need to take action now,’ and we did do that.”

Nevertheless, LiuGong hasn’t reduced its range of machines, says Beatenbough. “The one area where we really haven’t changed our focus is research and development.”

In mid-2015, the company announced it would boost coordination between its three existing

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Beatenbough says he’s proud of the new H-Series wheel loaders, which were launched last year in the Middle East.

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HEAVY HITTERS JANUARY 2016

international R&D facilities in India, Poland and the UK, with a new R&D hub in Liuzhou, southern China. The new $45m facility is part of the company’s ongoing efforts to globalise.

The company is investing close to 5% of total sales in R&D, which amounted to over $70m in 2014, says Beatenbough, the project lead for the new development centre. “For LiuGong to continue our growth path, we need facilities that enable our gifted design and engineering teams to innovate and utilise the technologies that will drive the future of our machines.”

At the new development centre in Liuzhou, the initial focus will be to undertake major research, development and testing for LiuGong’s lines of wheel loaders, excavators and graders. Laboratories will develop sophisticated measures to test and optimise all aspects of machine performance, such as structural design, materials science, electronic and hydraulic efficiency, cooling, vibration and noise. They will allow accelerated endurance testing as well as a wide variety of performance testing.

“One of the things that we pride ourselves on as we go out globally is that we are a full liner producer – we have essentially a full line of earthmoving tools of all types, and we know that we need to maintain that. We also know that at this point our full line is not ready for all global markets, so we’ve got a lot of work to do, particularly in the tier 4 and advance market areas. We’ve have only several models that we can sell in those territories, but many more under development.”

In terms of the mix between global exports and local market consumption, Beatenbough says the brand is naturally strong in China, for example boasting a 20% share of the wheel loader market. “It’s awfully hard to grow, and gain another point of share in wheel loaders in China. If we want to grow our market, we almost have to look outside.”

LiuGong was the first Chinese brand to really recognise the importance of having a good strong distribution network in order to break into international markets, he says.

“We’ve been working since the days when we exported our very first machines to develop strong dealers. We’ve got several dealers that have been with us for more than ten years now.”

Territories where they have strong dealers is where LiuGong places short-term emphasis, before setting out targets for the longer term in other markets.

One of the big LiuGong launches in the Middle East last year was the 856H, a 17.8t wheel loader with a 5t payload. It is the first in

a new generation of H-series wheel loaders, replacing the 856G, and makes extensive use of technology from LiuGong’s two major joint ventures in China, with engine producer Cummins and axle and gearbox producer ZF. The project to design the H-series began in 2010. “This is the first time that we’ve done a true integrated design from the ground up for a wheel loader,” says Beatenbough. “In the past, it was more bolting components together, and there was very little looking to see how systems work when they’re coupled with other systems. This changes all of that.”

The machines have been designed by the LiuGong team with all the component systems integrated, including the software controller. “We build our own controller, writing the software and optimising the machine for the needed applications.” The H-series range is also being developed by LiuGong’s internal industrial design team, the first project they have worked on.

In short, the machine is the fruition of the various strategic partnerships pursued by LiuGong, as well as the new development facilities. “Our first JV with ZF was about 15 years ago. It’s now three years since

we signed the JV with Cummins, and two years since we signed the second JV with ZF for axles. That very much is a long-term component quality strategy.”

Beatenbough was integral in developing LiuGong’s industrial design unit, and says that it is intended to bring a “unified DNA to all LiuGong machines”. While this process can be done with outside experts, that means personnel changes with external contractors can alter the DNA of the machines, he explains. “We decided the best thing to do was bring it in-house.”

Industrial designers are responsible for appearance and ergonomics – where the steering wheel is, how the cab feels and so on – rather than the actual mechanical performance of the machine, but good design improves operator comfort and productivity, ultimately improving the profitability of contractors.

Beatenbough joined LiuGong nine years with a remit to change the way the company developed its machines. “I was hired to bring structure into our processes, and actually create the process. When I joined the company, we really did not have a structured

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product development process.”

The outcome of improved processes has been more confidence in the reliability and performance of the product earlier in the process. “Without a process, it’s difficult to have a structured reliability testing, for example. Now we have, we can measure, and we know exactly what’s going on.”

One of the key steps in product development is product definition, where the manufacturer figures out exactly what the machine will be. “In the product definition for the 856H, we sat back and looked at which markets it was going to cover. We needed to cover the advanced tier 4 markets, we also needed a version suitable for China, both in the performance and pricing.”

With the product needing to cater to the full industry spectrum, the definition process helped decide which components and features needed to be changed to go from a high-end machine to an efficient low-cost model for developing markets. “We mapped that out, and once you have a map, the actual engineering is not that difficult.”

The biggest difference between the two versions was of course the engines, given the

different emissions levels. The lower-spec machine is being produced for both tier 2 and tier 3, reflecting the upgraded emission standard for China.

Parts commonality is one way to support dealers, making their job easier by making machines more efficient to service and cutting down on the amount of spare parts inventory they have to hold. It also has advantages for manufacturers to increase production efficiency. Parts commonality has been increased across the LiuGong range since he joined, but not as much as he would like, says Beatenbough. “That’s a never-ending goal, and my entire career has been grappling with ‘How do we increase commonality?’ It’s never enough.”

Specific to the Middle East, where machines must contend with dust, sand, long hours of work and in some cases being under-serviced by customers, Beatenbough says they’ve had good success in the region. “Essentially all the machines we sell in the Middle East, we have high temperature, high abrasion packages.”

Acquiring Dressta means the company has tapped into a wealth of data on bulldozer production, as well as having a production base in Poland, in the European Union. “On the bulldozer side, it’s completely changed our business.” LiuGong already produced bulldozers in China prior to the acquisition, but these were strictly for developing markets.

The company is currently engaged in a big product development project. “The result will be a global bulldozer platform, where we will have the same criteria as the wheel loader line – models for advanced markets and for the others.” Nevertheless, engineering a dozer line comes with its own challenges. Advanced markets want hydrostatic transmission on machines up through medium horsepower, whereas developing markets still want a torque converter.

The first machine to be released from this process will be a 160hp (119kw) dozer targeted at developing markets. That 160hp machine will satisfy the sweet spot in China, though Beatenbough notes that demand in the Middle East is mainly for machines in the 230-320hp range. The 160hp machine is set to be launched in early 2016; the 230hp machine is expected to launch by the end of this year, and the 320hp will be around Q2 2017, he estimates.

The technology on the LiuGong dozers will be very similar to the current Dressta range and the driveline will be the same, with some minor upgrades and improvements in efficiency. Comfort features won’t change much, though the cabin and the operator controls will be modernised.

Developing improved parts commonality at LiuGong has been a focus for Beatenbough.

“The Dressta machine is a timeproven design and evolved from the old International Harvester range of products, but manufacturing techniques and technologies have changed a lot in the last 30 years. If we can change the basic structural design, we can make the machine much more friendly to modern machining tools, and cost will improve significantly from that,” Beatenbough says. Production will take place in China and in Poland.

At the end of last year, Beatenbough received the 2015 Friendship Award, which is the Chinese government’s highest honor for foreign experts who have made outstanding contributions to their industry and to China, with a ceremony held by the China State Administration of Foreign Experts Affairs (SAFEA). Reflecting on how the LiuGong machines have progressed in his time with the company, he says that he’s seen the products mature.

“Nothing ever goes fast enough for me, but the H-series [wheel loaders] and E-series [excavators] are machines we can really be proud of. I’d say that these are competitive on a global basis, and our customers are telling us that as well.”

“One of the things that we pride ourselves on as we go out globally is that we are a full liner producer”

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COVER FEATURE JANUARY 2016

The newlylaunched massive EC750D excavator was the star of the show, showing quick loading times for the articulated haulers.

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fuTure Tech

VolVo CE and FaMCo hEld a Major MaChinEry dEMonstration and nEw produCt launCh in ras al KhaiMah, CoinCiding with uaE innoVation wEEK

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hough normally a favourite for tourists seeking to escape the bustle of Dubai, in November the Hilton Ras Al Khaimah Resort and Spa played host to a very different event: a high-level launch of new products and machinery demonstrations by Volvo Construction Equipment and its UAE distributor, Al-Futtaim Auto and Machinery Co (FAMCO).

Featuring a demonstration of machine acrobatics, the event was a chance for local contractors to see the deft touch of some of Volvo CE’s professional operators, and perhaps make some comparisons with their own staff.

It also heralded the launch of numerous new machines: a new 75t excavator, H and G series loaders, a new paver and a new line of Volvo CE breakers.

Held during UAE innovation week at the end of November, the day’s theme was ‘Building Tomorrow’, with Volvo CE focused on highlighting product features such as the Internet of Things (IoT), present as telematics and remote fleet management, and increased machine productivity and functionality. “Everyone talks about smart banking, smart cities – we want to talk about smart construction: How smart is your construction operation?” explained a FAMCO spokesman.

On hand were Shahir El Essawy, Business Manager, Hub East at Volvo CE – Region EMEA; and Frank O’Connor, FAMCO Country Manager for UAE. Speaking at the event, El Essawy said they were happy with the turnout of around 200 contractors. “This has been

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COVER FEATURE JANUARY 2016

in nUmbERs

thE ValuE oF training Volvo CE carried out a study to discover the difference in fuel efficiency and productivity between different operators performing identical tasks in the same Volvo L220F wheel loader. 80 operators were grouped into four categories – novice (2-10 hours of operating experience), occasional (machine knowledge but not frequent use), test operators (operate wheel loaders regularly) and professional operators.

Each operator performed the same tasks in three different simulated work-sites. All parameters were isolated, except the operator.

Data such as bucket load, vehicle speed, use of accelerator and brake pedal were recorded, as was fuel consumption, and was used to calculate fuel efficiency and productivity.

“This study focused on how operator behaviour affects the fuel efficiency and productivity of wheel loaders working in bucket applications in production chains,” says Bobbie Frank, Volvo CE. “The results showed an enormous difference between fuel efficiency and productivity between operators of differing expertise. Between the novice and the professional operator, productivity increased up to 700% and fuel efficiency increased by up to 200%.

When novice operators are excluded from the results, there is still an increase of up to 300% in productivity and 150% in fuel efficiency.”

the highlight of the year for us.”

With a large slice of the UAE’s contractors at the demo site, it was a chance to demonstrate the new products, as well as the bigger picture of dealer and manufacturer support.

“We live in a world that is far bigger than the product alone – the product has to be supported in the right way,” explained O’Connor. “We have stations to talk about the different benefits of the machines, not just the features, but the advantages for the customers, such as how we support that product.”

“It’s a very tough market out there, so we have to differentiate ourselves, it’s talking about up-time, warranties, talking about quality, support. The core values of Volvo CE are quality, safety, environment – these are very important core values, and they match the core values of the UAE, such as sustainability.”

With the machines themselves put through their paces with a carefully choreographed demonstration, it was a chance to talk about the importance of operator training, so that advanced features on machines can be used and contractors can see the benefits on their bottom line.

“The most important element in the entire construction equipment industry is the operator, and we feel that the operator is the most neglected element there as well,” said a FAMCO spokesman. “Operator errors can cause not only loss of lives, but damage and economic costs – not only damage to the equipment itself, but the entire site can be affected. One of our CSR objectives which we’re currently developing is operator efficiency training, enhancing capability and safety for all operators using

Skilled Volvo CE and FAMCO staff were on hand to provide in-depth knowledge of the individual machines for customers.

FAMCO equipment.”

Using simulators is one of the best ways to train up operators, according to FAMCO, since it allows practice without any chance of actually damaging a machine. The distributor has simulator machines at its large Dubai Investment Park (DIP) site, and offers free training to operators with the sale of a machine. The company is also planning expansion of its training centre.

“It’s important that as equipment suppliers we keep pushing the agenda. We want fleet owners to understand how important it is to make operators comfortable, rested and ready to perform. The sophisticated contractors already understand this – the busier and bigger they get, they understand the value in having proper operator training and safety and work standards. Government contractors can themselves set standards.”

Underlying the focus on technology and productivity at the event was the confidence that improved machinery and operator performance ultimately add dollars or dirhams to a contractor’s bottom line.

“Innovation brings a competitive edge and other opportunities for contractors, and they’re all entering the same tenders,” said O’Connor. “If we can support our customers with the right machinery, with efficiency here and there, and cost savings such as a lower fuel burn, better cycle times, operator training – adding that together is what turns our customer into the winner.”

Nevertheless, contractors are well aware of the benefits of productivity. O’Connor notes that contractors increasingly focus on the broader picture when considering a new machine purchase, and frequently walk into sales meetings with spreadsheets

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700%

with their measurement want him to look out of his points. Where contractors office and see a yard full of were once focused machines and operators.” mainly on the price tag, FAMCO’s presence in e The differenc now they’re looking at the rental market has ovice total cost of ownership, steadily grown since between a n ional launching the rental including residual value. and a profess “Their questions tend to portfolio around five years be built around those types ago. “We’re seeing a rapidly of valuations. Cost comes into it, growing percentage of rentals. but they want to know about efficiency, Rental, lease and option to purchase about servicing and about demonstrating at the end – these are the direction that up-time. Where once we used to talk about the market is definitely trending towards. I minimising downtime, that’s off the agenda can honestly forsee a time when [the ratio – now it’s all about maximising up-time.” between owned and rented machines] at According to El Essawy, Volvo CE has least becomes equal.” engineered longevity into its machines by The UAE demo showed contractors how developing engines built for high torque Volvo CE likes to show off its machines, with and low RPM, meaning that on average plenty of theatrics and exaggerated gestures they run at a lower RPM, securing not only for the crowd. It’s a formula that has been lower fuel consumption but also a much put to good effect, whether at the annual Volvo Days event in Eskilstuna or at the large longer service life.

Beyond engineering, financial products trade fairs such as Bauma in Germany. It and flexibility around ownership are also key also provides a vivid demonstration of an to a contractor’s success, O’Connor believes. OEM and distributor working together in With the high degree of volatility in the UAE close cooperation. business climate in terms of contractor jobs “An event like this is absolutely the right and the pipeline of contracts, offering rentals way to introduce new products to our and other solutions is essential. customers, and not just for our customers, “When I talk to contractors, I’m asking but for our prospective conquest targets as about their projects, to ensure they’re not well,” said O’Connor. “It’s very important exposed. Hopefully once their current to see Volvo and FAMCO hand in hand, project is completed, he’s got somewhere walking into the market and doing business to move his machines to, but if not, I don’t together.”

AT A glAnCE

thE nEw MaChinEs EC750D hyDrAuLiC ExCAVATor With an operating weight of 72.774.7t, the large EC750D will be targeted at demanding applications, including the quarry sector and large infrastructure projects. The excavator is powered by a Volvo D16 engine, developing 374kW net power at 1,800rpm, with breakout force of 325kN. Bucket capacity ranges from 3.3-5.16m3, making this a highly productive machine – in the hands of a skilled operator. This large excavator will allow FAMCo to broaden its appeal to the quarrying and mining sector, and is a chance to push its other large performance machines, such as the L350F wheel loader or articulated hauler range.

Gz-SEriES WhEEL LoADErS A trio of new wheel loaders make up the new Gz-Series, named for its z-bar linkage, making it ideal for bucket Volvo CE’s product demonstrations are a great proof of the importance of operator training to productive use of the machines.

work such as stockpiling. Purposebuilt buckets have been developed as an integrated part of the machine, constructed from high-quality materials including wear-resistant steel in the most exposed areas. The Gz-Series is designed to compete against a broad swathe of loaders. The all-Volvo drivetrain plus maintenancefree rear axle cradles reduce overall service cost and increase up-time. h-SEriES WhEEL LoADErS Comprising five new wheel loaders, the h-Series are high-end machines designed for production roles, able to handle heavy-duty tasks with excellent performance and outstanding fuel economy. The machines are equipped with Volvo’s optiShift technology, eliminating power losses in the torque converter and reducing fuel consumption by up to 18%. Combined with Volvo CE’s patented reverse By Braking (rBB) technology, optiShift boosts productivity and efficiency in all applications. rBB is ideal for short cycle or truck loading applications – sensing the loader’s direction and slowing the machine by applying the service brakes automatically.

...coming soon

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THE YEAR AHEAD JANUARY 2016

Machinery sellers expect 2016 to be a tough and competitive year.

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2016: Hope amidsT HardsHip CMME finds participants in the Gulf’s construction machinery sector GearinG up for a cloudy year ahead with only a thin silver lininG

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he construction machinery industry in the region is hunkering down for 2016 with a sense of cautious optimism, tempering its expectations in accordance with the region’s economic conditions.

“I would term the outlook for 2016 as conservative at best,” says Piet van Bakergem, GM, Hitachi Construction Machinery Middle East Corporation. “Some major economies in the region are suffering the effects of the depressed global oil prices, resulting in a general moratorium on new public projects. Yet there are existing projects that will have to go on and so there will be a rush in the construction machinery industry towards these projects. I expect it will be street-fighting in the sector, but I believe realistic targets will still be achievable.”

Van Bakergem also expects cost-cutting in the construction industry, with a resulting impact on the construction machinery sector. “I think new project and investment decisions will generally

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THE YEAR AHEAD JANUARY 2016

“There’s uncertainty in the market, so people are cautious. Big projects in the private sector have almost dried up” be kept on hold. The bottom line is that everyone will have to be lean and mean.”

Agreeing with him is Joe Lahoud, GM of Construction Machinery Center (CMC) Dubai, which represents multiple global brands. “Everybody is expecting 2016 to be tough,” he feels, and attributes this mainly to the effect of low oil prices on regional exchequers.

“There’s uncertainty in the market, so people are cautious. Big projects in the private sector have almost dried up. Public sector projects are also fewer now than some years ago, as the falling international oil prices have affected the cash flow of regional governments.”

But there is hope in the gloom in the form of the 2022 World Cup in Qatar and Dubai’s Expo 2020. Both events are matters of national prestige, which the governments are committed to deliver and on which the regional construction machinery sector is pinning its hopes, according to Bassem

Al-Bermawy, regional product manager – construction equipment, at FAMCO. “We can expect a generally flat market in 2016, except for Qatar. Construction of the sports facilities and allied infrastructure will not stop and neither will public projects such as the Doha Metro, which the country wants to showcase concurrently with the World Cup in 2022,” he says.

“Dubai will also continue building for Expo 2020, but that project involves private partners such as hotels, who are expected to play it safe during 2016 and go slow, knowing that they can always step up the pace as the event nears.”

Others hold similar views, but van Bakergem strikes a more optimistic note with his expectation that public projects will get a boost towards the end of the year.

“There are projections that the oil price will recover in the second half of the year, reaching around $75 per barrel from the current $36. That could open the floodgates

SEnTimEnT

Gulf construction sees “dramatic” decline in optimism The Gulf construction industry

95% said payment periods were

the industry also views Qatar as

in these countries. The reluctance

is significantly less optimistic

longer this year, while 60% said

a promising market, with 33%

towards Iran could be due to a

about the year ahead compared

they were involved in more disputes

of respondents voting it as the

wait-and-see approach being

with 12 months ago, as economic

during 2015 than had been expected

strongest regional opportunity.

adopted, as sanctions are yet

and geopolitical factors weigh

before the start of the year.

heavily on market sentiment, a survey has found.

“This is the sharpest annual

to be officially removed.

“The majority of the GCC

“The results are indicative of a

decline in optimism our survey

hardening economic environment

has seen, and there is no doubt

construction industry is hesitant

as the construction industry, like

that economic and geopolitical

around pursuing opportunities

survey, which looked at companies

many others, grapples with the

concerns are playing heavily on

in Iran and India. A cautious

involved in projects with a value of

impact of ongoing low oil prices,

people’s minds,” said Sachin Kerur,

approach is always advisable when

over AED100 million ($27.2m), shows

simmering geopolitical tensions

head of the Middle East Region

entering new markets, particularly

that just a third of respondents

in parts of the MENA region and

at Pinsent Masons. “Nowhere in

ones that have been subject to

(32%) are optimistic about the year

a general concern related to

the region is falling optimism as

sanctions,” Kerur noted, although

ahead. This is in sharp contrast

emerging markets from many global

pronounced as it is in Saudi Arabia.

he urged that the industry consider

to 77% stating that they were

investors,” Pinsent Masons said.

This is to be expected, given the

more opportunities in India.

Law firm Pinsent Masons’ annual

optimistic about 2015 a year ago.

Market-wise, optimism

challenges the country is facing

“India is one of the few

The shift in sentiment is consistent

surrounding Saudi Arabia declined

and the central role oil maintains

countries in the world to show

with less positive responses

sharply, with just 12% stating that

in its economy. Despite this, the

strong economic growth, and

to questions about contract

the kingdom would provide the

Kingdom will remain an attractive

businesses located in the Gulf

conditions, payment periods and

strongest growth opportunity in

market if current conditions lead to

are ideally suited to access the

disputes, Pinsent Masons said.

2016 – a substantial drop from

greater economic diversification.”

country. I would encourage them

The Gulf construction sector

to be more proactive on pursuing

The vast majority of businesses surveyed (93%) said that contract

40% of respondents last year.

While the UAE is considered

was also cool towards Iran and

commercial opportunities in

conditions had become less

the strongest market opportunity

India, with only 40% and 42%

India, providing the right level of

favourable during 2015. Additionally,

in 2016, a growing portion of

respectively pursuing opportunities

due diligence is conducted.”

33

again for public spending,” he says.

Better fleet management will also be the order of the day as machinery suppliers look to trim flab and optimise operational efficiencies. “Companies will increasingly deploy IT analytics, collecting and mining data on a wider scale for optimal operations,” says Al-Bermawy. “Data on everything from driver efficiency and fuel economy to machine hours and performance will be registered and analysed in the quest for leaner operations, increasing the role played by Big Data.”

Meanwhile, in the wake of September’s tragic crane accident in Makkah, safety will continue to be at the forefront. “Public sector projects will push for comprehensive safety and this will influence their choice of machinery,” says Lahoud. “Well-known global brands with established safety records will be the natural choice as project managers look to mitigate risks.”

This is just the scenario that van Bakergem is betting on. “Hitachi will be launching several new products in the region in 2016,” he says. “We believe the time is right as the prevailing emphasis on safety will work to the advantage of our brand, which has a great track record. Despite the grim forecasts, I remain optimistic.”

Investment in infrastructure projects is expected to drop because of reduced revenue from lower oil prices.

Speaking at the recent Big 5 in Dubai, Bram van den Enden at Euro Auctions said that already he has noticed a drop-off in buyers from the Middle East at its used equipment auctions. While Euro Auctions doesn’t have any physical auction sites in the region, Middle East buyers are in general well represented at its auctions, he says, noting that the firm is proficient in loading equipment to transport to overseas buyers.

Popular items include Bomag rollers, asphalt equipment, hydraulic excavators and wheel loaders, especially Caterpillar and Komatsu. Buyers are typically dealers based in Sharjah or end users in countries such as Saudi Arabia. While the fall in the euro provided a bounce in Middle East buyers some 12 months ago, demand has begun to drop. “Interest from Middle East buyers is decreasing. At the moment. there is less demand for used equipment. We have actually a lot of buyers from the Middle East shipping back the machines they bought in Europe, shipping them back to our auctions, because they don’t have any market here at the moment. Overall there is less demand.”

2016, therefore, emerges as a year expected to be fraught with challenges – but not completely lacking in opportunities.

infRASTRucTuRE

low oil prices to hit Gulf infrastructure spend – Jll Low oil prices will likely lead to cuts in infrastructure spending, according to JLL, which says that fiscal restructuring in Gulf states is already evident in the form of budget cuts. This will involve reduced public spending and increased taxation to bolster government revenue, which will have implications for infrastructure and real estate investment in the region.

“While many of the announced projects are likely to proceed, they may be scaled back or rescheduled over an extended time frame, with future projects being curtailed.

This will inevitably have a knockon effect on local real estate markets,” the consultancy said.

Meanwhile, governments are also seeking to raise revenues through sales tax, land or housing taxes and the reduction or removal of subsidies.

“While we remain positive on the long-term outlook for real estate markets across the region, there is little doubt that the rebalancing of the fiscal position will result in headwinds and challenges over the next 12 months,” said Craig Plumb, Head of Research JLL MENA. Although governments will continue to spend on development and infrastructure projects, the level of spending will be curtailed.

Overseas property investments by government-controlled sovereign wealth funds (SWFs) are expected to decline in 2016 and JLL expects more funds to be diverted into local real estate, providing “an important source of additional capital for real estate markets across the Middle East”. However, some of the decline in offshore investments by SWFs will likely be offset by private Middle Eastern investors, who are becoming active purchasers of property overseas.

“The prevailing geopolitical and security tensions across the Middle East are expected to result

“I expect it will be street-fighting in the sector, but I believe realistic targets will still be achievable”

in an increased flight of private capital as wealthy Middle East investors seek opportunities in more stable and secure overseas real estate markets,” said Plumb.

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R E W O P W A R EED TO N U O Y G IN EVERY TH

KNOW

41

iP s T O TOP 10: T l save fue

36_NeW Releases

uce your How to red el bill. monthly fu

The latest releases from the world of construction machinery.

44_afTeR-sales Dealers weigh in on what makes effective servicing.

48_fusiON Time Potain cranes are operating on a fusion reactor site in France.

36

NEW RELEASES JANUARY 2016

Bauer launches new line Why get it?

More serviceable and cost-effective Bauer has announced new medium-sized platform machines within its ValueLine segment.

In 2011, the company organised its drilling rigs into two segments, the ValueLine and PremiumLine, with the ValueLine optimised for kelly drilling and the PremiumLine comprising multifunctional drilling rigs for a large number of different applications in specialist foundation engineering.

The medium-sized platform series is designed for bored piles with a diameter of up to 2.5m and a drilling depth of up to 70m.

Through consistent focus on usefulness to

customers, functionality and profitability, it has been possible to come up with a new priceperformance ratio for drilling rigs. The mediumsized platform series includes the Bauer BG 26 as the lowest-priced model, and – in the larger version – the Bauer BG 30. The new ValueLine rigs score with their latest technology.

“Although we have limited our product range to two machines with medium-sized platform, it in no way implies a gap in our product range. We are merely replacing machines that are similar to each other with closely related machines,” explains Bruno Unger, divisional director for the ValueLine. “This offers a decisive advantage, as the machines were developed in such a way that components are exchangeable between the rigs. This means that, in most cases, the required spare parts are immediately available.”

The core element of the medium-sized platform series is the common base unit BT, completely designed and constructed

by Bauer. This innovative concept offers an entire range of advantages. The modern and highly functional base carrier is impressive because of the highest safety standards and very low noise emission values, and the large cross-sections of the hydraulic lines provide optimal engine efficiency, which is then directly reflected in the fuel consumption. For difficult conditions, a BTM torque converter or casing oscillator can be attached.

Service is also enhanced with new features that make maintenance, assembly and disassembly easier. An integrated service platform allows easy and safe access for all maintenance work in the uppercarriage.

There is a grating step connected to part of the side panelling that is pulled out from the uppercarriage, so that the side panelling serves as protection against falling. The cabin is characterised by high functionality and provides an optimal view of the site.

37

redesigned duplex roller from atlas copco lieBherr announces 70t dozer Why get it? the largest crawler tractor in liebherr’s line Liebherr has announced plans to launch a 70t crawler tractor, the first time it has manufactured a dozer in this weight class. The new PR 776 is designed for tough mining and quarry operations, and will be shown next year for the first time at Bauma 2016.

The PR 776 crawler tractor extends the Liebherr range of crawler tractors. Once it is launched in April 2016, Liebherr will have a total of seven models in its portfolio with operating weights of 17-70t. The machines excel in diverse applications, whether heavy ripping work, moving material transport or fine-grading.

Some new developments are being introduced with the entry to the new size class; nevertheless, Liebherr is also integrating special features of the Generation 6 crawler tractor programme, which have already been tried and tested in practice. These include, for example, proactive power control, the maintenance concept and the modern driver’s cab.

As with all Generation 6 crawler tractors, the main components of the new crawler tractor are manufactured in-house, at Liebherr’s plant in Telfs, Austria. They are adapted optimally to the requirements of the machinery.

Why get it? hydraulic oil cooler keeps operating heat low Atlas Copco has launched its newly redesigned LP6505 walk-behind duplex roller. Compared with the previous iteration, the most obvious difference in the makeover is the outer design. The new flip-up hoods make for easy access to all service points, such as engine maintenance or battery charging. The manual brakes are replaced with new automatic hydraulic brakes, and when pressure goes down, the roller brakes automatically. If pressure goes up, the brakes are released. The LP6505 is also equipped with new scrapers to avoid material sticking on the drums, while overall it’s easier to operate. ”After a decade of success with our fully hydraulic duplex roller LP6500, we are now updating it to the LP6505,” says Kjell Helgesson, Product & Application Specialist Light Compaction. ”Of course

still fully hydraulic, both for vibration and travelling, but also with new good-looking designed hoods. We are also using our new hydraulic oil cooler so we can control temperature in hot environments.”

Atlas Copco is the only manufacturer that delivers this type of hydraulic oil cooler. There are several upsides of keeping temperature down: reduced wear on components, battery lifetime increases, and polymer items such as seals and rubber retain their function, which prevents the machine from leaking. Keeping the machine cool simply provides a longer life.

The LP6505 is equipped with even more new user-friendly features, says Helgesson. ”The operator also has easy access to throttle control, electrical starting box, water control. And we have the same low vibration values as on the LP6500.”

SPECIFICATIONS

lp6505 (Manual start) Operating weight: 747kg Frequency: 55Hz Amplitude: 0.42mm Centrifugal force: 20.3kN Drum diameter: 400mm Drum width: 650mm

38

NEW RELEASES JANUARY 2016

linden comansa flat top the right stuff Why get it? iMproved design on slewing unit, stronger crane perforMance Linden Comansa has launched a new flat top tower crane, the 21LC450 and bolstered the load capacities of various models in the LC2100 series.The series is mainly designed to operate in industrial, mining, infrastructure and public works projects and is one of the most successful series from the manufacturer. Over the last few months, the R&D team of Linden Comansa worked to optimise various models.

The result is a new model, the 21LC450 crane with 20t and 25t versions, versus the previous 12t and 18t 21LC400 crane.

To achieve such an obvious improvement, not only have the hoist cable and trolley/ hook assembly been modified, but the slewing part of the 21LC400 has also been replaced (turntable, slewing ring and cathead) with a newly designed unit, which is common to the slewing part of the 21LC550

25t. Not only is the crane strengthened, but modularity and interchangeability of elements between the new 21LC550 25t and 21LC450 are also facilitated. In addition, most jib, counter-jib and tower sections of the 21LC450 are identical to those of the 21LC400, which allows companies that own both models to swap sections as needed.

Compared to the 21LC400 18t, the 21LC450 20t has a maximum load capacity 2t greater than its predecessor, with an improved load chart. For example, with its 50m range, the 21LC450 can load up to 10t on the tip, while the maximum load capacity of the 21LC400 was less than 9t.

The maximum load capacity increases by 7t in the 21LC450 25t, compared to the 21LC400. This crane has a tip load capacity of 2,600kg (2,860kg with PowerLift, which comes as standard) and can load up to 25t, up to a reach of 20.6m with a 40m jib length.

SPECIFICATIONS

lc2100 range Base: folding cross base Frequency-controlled drive systems: 37-110kW Reeving system: two trolleys Oscillation absorber: optional

fassi launches 50t knuckle Why get it?

50t knuckle booM crane can be installed over three-axle chassis Italian crane manufacturer Fassi has launched the F545RA heavy-duty knuckle boom crane, the last model in its XE range.

The new crane has been designed to build on the performance of the current smaller model in the XE range and take it further.

With this new model, Fassi achieves the goal of producing a true 50 tonnemetre crane with a footprint compact enough for installation on a three-axle chassis. The performance achieved is indeed remarkable, compared to the smaller model. The new crane gives a 10% increase in lifting capacity with just a 3% increase in weight. The power-toweight ratio benefits from the outrigger spread having been increased to 7.8m, providing stability for challenging lifts. The footprint of the machine has increased by only 85mm, maintaining the compact dimensions of the smaller F485RA. SPECIFICATIONS

f545ra Lifting capacity: 51tm Max outreach: 31m including jib Width: 2.5m Length: 1.45m Height: 2.50m

Al-Qahtani Vehicle & Machinery Co. Tariq Al-Qahtani & Brothers

41

01

chEck opErators arEn’t idling Having an operator sitting in an idling machine is expensive for fuel. Studies have shown that idle time in the Middle East is high.

Combat this through operator training, improving workflow, and buying machines with low-RPM idle modes, and monitor using telematics.

02 EnsurE tyrEs and tracks arE up to it Perform regular checks on your machines’ drive components – under-inflated tyres or damaged tracks will chew through a lot of juice just getting your machine about the job-site.

: n e T p To S p I T G n I V A S L F Ue cal to i x o d a r a seem p ime t y a a t m a t i s e t s l Whi fuel co g n i t t u c loW, c i r n o o t s s i u c h fo re at a a s e c i r unts! p o l i c o p o n r e d h W t eVery a h t s i h the trut

03

usE a smallEr machinE There is a tendency in the Middle East to invest in larger machines. For heavy jobs that makes sense, but it’s also beneficial to have smaller machines on-site to perform certain jobs. Many compact machines, including skid steers and excavators, also have extensive attachment ranges that boost their work portfolio.

BU Y A e T K TILT BUaC llow your

Tilt buckets to work operators excavator opes and kments, sl on emban t having ces withou other surfa on the tly repositi to frequen hnique e it’s a tec il h W . e in mach ining, es extra tra that requir term it in the long pays off.

04

42

top tEn JANUARY 2016

train, train, train Operators are responsible for how productive a machine is. Regular refreshers and dealer training days remind them of the basics and help them acquire advanced techniques.

05

06 usE Eco-modEs Many machines have low-RPM operation modes for less strenuous tasks. Purchasing machines with eco-mode and training operators in correct selection prevent over-use of fuel.

optimisE procEssEs If your job-site isn’t running efficiently, then machines will be driving extra distances or waiting too long between functions. That’s a recipe for higher fuel and machine costs. To get these under control, engage in optimisation processes, whether it’s you alone or bringing in consultants from dealers, OEMs or other professionals.

InVe S Tne In mAChoI L ConTnrproduction

do When use ders such as gra s machine ntrol o c e machin , rs e z o d d ase an tically incre n can drama w o d g in y, cutt productivit d n a rs u e ho on machin l se ie therefore d burnt.

09 07

Buy nEw New machines typically have higher efficiency, due to improvements in engine design, hydraulics or general design. Shopping around and comparing models allows you to decide which machine will have the lowest annual running cost.

08

prEvEnt thEft Fuel theft can occasionally be an issue and result in higher costs. One extreme option is to weld shut the tank after refuelling. However, a simpler solution is to track machine usage and match to fuel burn.

10

Premium, tough and productive THE VOLVO FMX is a premium truck that is perfect for tough construction jobs and is available in both rigid and tractor versions. It is packed with the latest technical innovations and everything – from in-cab material to the chassis – is of the highest quality. In addition, the Volvo FMX packs a heavy payload, has excellent ground clearance and offers safe driving in all conditions. In short, it is a very productive truck that improves your profitability.

For MORE INFORMATION ABOUT THE VOLVO FMX please visit volvotrucks.com/FMX

THE NEW Volvo FMX

44

AFTER-SALES JANUARY 2016

SERVICE TIME They’re Two of The Gulf’s Top machinery dealers, represenTinG Two of The reGion’s mosT souGhT-afTer brands. so how do albahar in The uae and Jaidah he in QaTar keep Their busy workshops movinG and Their cusTomers saTisfied?

45

Al Bahar’s service workshop in Sharjah employs 54 after-sales support engineers, in just one of the Caterpillar dealer’s service depots.

A

t the most simple level, a construction machine can be doing one of either two things: working on a job-site, making money for its owner; or something else. Something else often means sitting idle, perhaps because the fleet owner hasn’t got a job to move it onto, or else because the machine is out of service and the spare parts needed to get it moving have to be shipped from a distant continent.

For the top OEMs and dealers, this latter option is the avoid-at-all-costs scenario, with dealer support and service often the most important contributor to customer retention and follow-on sales.

This is why many brands invest large sums of money maintaining high levels of spare parts availability, whether in the dealer’s workshop or in the manufacturer’s regional office (normally located in Jebel Ali, or one of Dubai’s other freezones).

One of the best examples is Caterpillar, which opened its Middle East Distribution Centre (MEDC) in 2013. According to Raed Hosny, product support marketing manager at dealer Mohamed Abdulrahman Al-Bahar’s workshop in Sharjah, the centre has shortened lead times, improved customer-centric and order-todelivery metrics, and enhanced the sense of urgency in dealing with any unpredictable orders from the customer.

In charge of the Sharjah workshop and overseeing 54 aftersales support engineers, Hosny is on the front line of keeping machines running – and customers happy – in the long service life following a sale.

“We are committed to delivering to our customers a wide range of quality and timely after-sales solutions to strengthen our market leadership. This is done by creating a dynamic and profitable relationship with our customers.”

As the construction machinery industry continues to innovate, machines are consistently featuring higher levels of on-board technology, while at the same time the use of sophisticated diagnostics equipment to evaluate and repair machines is becoming more important and more effective.

This means that some fleet owners are now looking to dealers to maintain machines, instead of taking it upon themselves at their on-site workshops.

46

AFTER-SALES JANUARY 2016

SEcond LivES

ToTal rebuild Al-Bahar has been offering complete rebuilds on old equipment since 2008, and Hosny says it has subsequently become one of the main repair options for customers in certain industry segments, such as the quarry segment for machines and the oil and marine segment for engines.

Not only does a rebuild allow an old machine or engine to get back on the job, it also means the customer can incorporate the latest technological advances and critical engineering updates into his equipment, at a fraction of the cost needed for buying a new one, says Hosny. “With more than 350 tests/inspections and automatic replacement of about 7,000 parts, the customer can get almost a new machine with warranty included.”

During 2014/2015, the workshop carried out complete rebuilds for more than 35 machines and engines, and with rebuilds offering serious value compared with buying a machine outright, this number can only be expected to grow.

“Our customers are well educated about our rebuild programmes, as they deliver a cost-effective second life, and they are getting more interested in enrolling most of their old machines or engines under this service instead of scrapping them,” points out Hosny.

“Our facilities are five-star certified for contamination control, providing superior value to our customers in terms of increased reliability and durability of equipment.”

Service contracts are one example, and Hosny says they are becoming a common demand. “The advantages of such service is providing our customers with a timely and quality equipment management solution, with all the logistic work carried out by Al Bahar.” Benefits include optimum equipment performance, lower ownership and operations cost, higher resale value and overall peace of mind for a fleet owner’s operation, he says.

The efficiency of a dealer workshop service contract can also be boosted by the use of Cat’s Equipment Management

Komatsu’s onboard telematics system means better service scheduling and more accurate diagnostics for customers.

Solutions. “This process allows you to view and act upon machinery location, fuel consumption, as well as health and maintenance issues like hours, fluid contamination, scheduled oil samples and much more,” explains Hosny.

Another busy workshop is that of Jaidah Heavy Equipment in Doha. With construction projects in Qatar needing to be completed to rigorous timetables, machines are quickly racking up large hours and reaching their service intervals.

Ibrahim Emira, Jaidah’s service manager, says that they’ve seen increasing demand for after-sales support – “Either to support old running machines or new ones, especially for projects running 24 hours, seven days a week.”

Emira’s workshop has a staff of 116, including parts sales, service advisors, well trained technicians, product support, customer relationship managers and administrators, responsible for the full suite of products including equipment (Komatsu, Link-Belt, Bobcat, Sakai, Everdigm and Doosan light towers), as well as the range of commercial vehicles, including UD Trucks, International Trucks and the Iveco range of pickups and trucks. In all, their centre services around a thousand units a month, including equipment, pickups and trucks.

“Our after-sales philosophy is to focus on creating customer value by building longterm customer relations. We aim to meet and exceed our customers’ expectations by building strong, long-term relationships that earn the trust of our customers; offering first-class after-sales services; providing innovative solutions that create real business value; and attracting and developing the best people.”

47

SERvicE innovATion

cusTomer saTisfacTion In Qatar, Jaidah has launched a customer satisfaction odometer to measure how satisfied customers are with its after-sales services.

It’s a feature which is common in the business to consumer (B2C) industry, but less so in B2B. “At each delivery we make at Jaidah HE service centre and spare parts counters, customers are requested to rate our provided services on a five-scale parameter [emoticon faces from upset to very happy],” explains Haytham Kamel, a CRM executive at Jaidah HE. “Based on

Service contracts are an important part of the offering. Emira says that customers are attracted to these for one major reason: peace of mind.

“Utilising service contracts, we can satisfy the main need for our customers, namely getting the best performance of their equipment or trucks with minimal breakdowns. By using genuine parts, skilful and well-trained labourers, with fixed, discounted rates, our customers can get best results of using their trucks and/or equipment with a very competitive cost, and through that gain a high resale value for their fleet.”

While telematics has been available on machines for a number of years, the benefits are continuing to build for customers. Komatsu’s on-board system, Komtrax, stores machine working history and locations.

“It is very useful in planning for the next periodic service, which makes forecasting for required parts much easier as well. It can help us to accurately diagnose failure

Jaidah HE’s workshop in Doha services around 1,000 units of equipment, trucks and LCVs each month.

reason, so our field service team can be equipped with required parts and/or tools to fix the error,” explains Emira. “In addition, it can run useful reports to help customers to ensure machine utilisation is high, measure fuel consumption and more.”

In Sharjah, Caterpillar’s product link service gives Al Bahar full awareness of any problems in the customer fleet, explains Hosny. “This gives us increased touch points with the customer, as we are monitoring the equipment through VisionLink, so we can predict any failures and fix them before it becomes a major issue.” These services also give fleet owners notifications for timely maintenance management, with built-in Caterpillar recommended service intervals and parts list, and alerts and displays with customised diagnostics.

“VisionLink is a comprehensive fleet management tool. It provides remote monitoring, asset tracking, service and maintenance management, and allows customers to see the condition of the entire fleet at a glance.”

that rating, the odometer is showing exactly to what extent they are satisfied with services provided.”

Showing the results of the feedback on the odometer makes it more familiar and easier than the usual star rating or charts, says Kamel, and has helped the company identify areas of interest to customers, keep track of satisfaction level, enhance perceived value and better manage and monitor the business. “Our customers’ response toward satisfaction measurement has been very positive since we started, more than one year back.”

“By using genuine parts, skilful and well-trained labourers, with fixed, discounted rates, our customers can get best results of using their trucks and/or equipment with a very competitive cost”

48

THE LAST WORD JANUARY 2016

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