ISSUE 45 JUly 2015
high Summer dealing with the heat
Small in demand mini machines prove useful
tOP recOrdS achievements that define the industry
Selling kit
Online sales of used equipment
PrOductivity
trimble on boosting work
riSing fOrtuneS
Japanese manufacturers
tariq al-Qahtani on business growth and the macro vision for Saudi arabia Plus: RAW POWER
* NEWs & ANAlysis * hEAvy hittERs * tOP tEN * AND MuCh MORE
Contents
page 34 For the record...
A round up of some of the records that define the construction machinery industry.
IS S U E 4 5 JU ly 2 0 1 5
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Editorial Companies need to focus on costs to remain profitable.
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NEws The latest news ifrom across the region and further afield.
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Kit spottiNg A Terex CC-8800-1 crawler crane is used to erect a flare stack at a Saudi Aramco plant in Yanbu.
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oN thE CovEr: Ksa powErhousE Sheikh Al-Qahtani on the macro vision for Saudi Arabia.
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CopiNg with thE hEat How air-conditioned cabs can help operators combat fatigue and stay productive.
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small is BEautiful Contractors are turning to smaller machines to reduce fuel and manpower costs on the job-site.
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risiNg fortuNEs A round up of full-year results from Japanese manufacturers of construction equipment.
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Raw power
44 NEW RELEASES The latest and greatest new releases from the world of construction machinery. Page 49 TOP TEN Ten tips to ensure you get the most out of your fleet during these hot summer months. Page 52 SELLING ONLINE How the Internet is improving sales of used equipment. Page 56 A FREESTANDING WOLFF A Wolffkran flat-top is installed in an impressive 130m freestanding configuration. Page
Contents
CX700B PROFIT ORIENTED
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EDITOR'S CHOICE
READERS' COMMENTS
1
First leg of Dubai Eye big wheel lifted into place Contractor ALEC says leg sections of what is set to be world’s biggest Ferris wheel are expected to be completed by the end of June. PHOTO GALLERIES
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Blatter resignation casts further doubt over Qatar 2022 World Cup With construction of stadiums in full swing, loss of FIFA competition would cost Qatar about $16 billion, according to estimates.
Inside Siemens power plant being built in Germany MEConstructionNews.com gets an insider view of the new combined cycle power plant being built by Siemens in Dusseldorf, Germany. See photo galleries at: meconstructionnews.com/photos
3
Chinese construction firm “eyes $3bn Balfour Beatty takeover” China Civil Engineering Construction Corporation looking at feasibility of bidding for Britain’s biggest contractor, the Sunday Times reports.
Oliver Whyte responds to the story, ‘Midday break for UAE construction workers to start on June 15’ READER POLL
4
UAE employers will need permit to hire Indian workers Foreign employers looking to recruit blue-collar workers will need to register online and declare terms and conditions of employment.
5
Dubai’s RTA to extend metro tracks to 421km by 2030 Roads and Transport Authority’s strategic plan also involves extending marine lines to 450km.
“The UAE appears to be even more serious about the enforcement of its midday work ban this summer, which is indisputably a good thing. This should be a great example to other countries in very hot regions of the world. However there should be some additional measures taken either side of the threemonth period as it can also get extremely hot during those times”
What will be the major challenge for your company in 2015?
10% 14% VIDEO
Watch this game of golf… played on giant moving Caterpillar trucks A Cat promotional video shows two Japanese golf pros tackling a course made entirely of heavy equipment. See videos at: meconstructionnews.com/videos
Cost of raw materials
Competence of sub-contractors
30% 46% Poor contract margins
Non-payment or slow payments by clients
Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com 4
CONSTRUCTION
MIDDLE EAST
July 2015
N E W
H I - R E L I A B I L I T Y
I S
P O S S I B L E
Iveco with
W W W . I V E C O . C O M
Editor’s Letter
GROUP GROUP CHAIRMAN AND FOUNDER DOMINIC DE SOUSA GROUP CEO NADEEM HOOD
Time To baTTen down The haTches for profiTabiliTy
A
s any longstanding business in the Gulf knows, longevity in these markets relies on being resilient and cautious. In the construction sector, individual markets have seen major booms and major busts in the ’80s, ’90s and ’00s. That makes survival a difficult business. While the construction market is intensely competitive, meaning low contract margins, on the other side of the equation contractors are continuously being squeezed by the rising costs of raw material, manpower and even diesel. Slow payments are also a perennial problem, more so in some markets than others, and this makes business planning even more difficult.
The current business climate in the Gulf shouldn’t yet be causing too many sleepless nights, but in the mid- to long-term, it’s likely that government spending on construction projects will drop as they adjust to the new normal of the oil market. Analysts expect the price of oil to recover to $75 a barrel by the end of the year, but there is very little optimism that it will go north of $100 any time soon. For some of the GCC countries – notably Oman, Bahrain and Saudi Arabia – this means states will be more cautious when it comes to spending on projects. The good news is that Gulf countries remain committed to spending programmes, and are aware of the need to avoid provoking shocks by reducing spending too quickly. But the bad news is that readjustments will take place. As always, businesses can ensure longevity and profitability by focusing on reducing costs within their organisation – the only thing in today’s economy which they truly can control. This is always the case, but it’s something many businesses lose sight of during the good years, and sometimes it takes economic adversity to force a company to look at which areas of their business are underperforming.
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 ACTING EDITOR STIAN OVERDAHL stian.overdahl@cpimediagroup.com +49 176 271 203 87 REPORTER JERUSHA SEqUEIRA jerusha.sequeira@cpimediagroup.com +971 4 375 5477 SUB EDITOR AELRED DOYLE MARKETING & ADVERTISING COMMERCIAL DIRECTOR MICHAEL STANSFIELD michael.stansfield@cpimediagroup.com +971 4 375 5497 MARKETING MANAGER LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498 DESIGN ART DIRECTOR SIMON COBON DESIGNER LUCY MCMURRAY 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 WEB DEvELOPER MOHAMMAD AwAIS WEB DEvELOPER UMAIR SHAMIM
On the equipment front, some firms can look at adding more variety and dynamism to their equipment fleet, such as through the addition of smaller machines – such as mini-exacavators or compact tracked loaders – to reduce their reliance on larger machines. Machine control also offers some serious advantages, and with newer machines it is increasingly easy to use or install positioning equipment in the field. Plant divisions should also take a long hard look at service and try to optimise the costs of machinery upkeep, whether it’s through outsourcing more work to the dealer or shifting their fleet mix towards brands which have proven their worth. A tougher trading environment may make profitability more difficult, but for companies that know how to innovate and make their business model fit the circumstances, there are always profitable contracts to be won.
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 2015 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. ISSUE 40 JULY 2015
HIGH SUMMER Dealing with the heat
SMALL IN DEMAND Mini machines prove useful
TOP RECORDS Achievements that define the industry
SELLING KIT
Online sales of used equipment
PRODUCTIVITY
Trimble on boosting work
RISING FORTUNES
Japanese manufacturers
Tariq Al-Qahtani on business growth and the macro vision for Saudi Arabia PLUS: RAW POWER
Stian Overdahl, Acting Editor, CMME
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CONSTRUCTION
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July 2015
* NEWS & ANALYSIS * HEAVY HITTERS * TOP TEN * AND MUCH MORE
NOW ONLINE You can now catch the online edition every month at: www.constructionmachineryme.com
News Round-Up
NEWS New machines, new offices, new projects, new initiatives – we look around the region at what’s new this month HyUnDAI HI HITS 500K Hyundai Heavy Industries (HHI) has celebrated the production and handover of its 500,000th construction machine. The feat came 28 years after the company introduced its first excavator in 1987. This year, the company is targeting $3 billion in global sales.
UAE hAlts 14 qUArry opErAtions
The UAE’s Ministry of Environment and Water has suspended 14 crusher and quarry operations around the country for allegedly flouting environmental regulations. They were found to be in non-compliance with standards for maintenance of equipment and dust collectors, and the disposal of industrial waste, dust and fumes. Saif Mohammed Al Shara, assistant under secretary of the external audit sector at the Ministry, said the plants found in violation will have to cease operations for one to three months and cannot resume work unless they meet required standards. “The plants will also be closed permanently if they
are found to be in violation for a third time,” he added. The decision follows an evaluation of all crushers and quarries in the UAE. The Ministry’s external audit sector carried out scheduled and unannounced field visits to monitor compliance with environmental laws. The regulation divides facilities into four categories: A, B, C and D. Facilities in the D category have to stop activities until they meet all environmental requirements. Category C sites must take necessary measures to improve. If after inspection the companies are again classified in the same category, they will be at risk of closure.
Powerscreen crusher sells for $400,000 at RBA Dubai sale Strong results for motor graders, rollers, mobile cranes and telescopic forklifts, reports auctioneer
A
number of high-value pieces of equipment went under the hammer at Ritchie Bros. Auctioneer’s recent two-day sale in Dubai, including a 2012 Powerscreen XH320SR impact crusher which sold for $400,000. Other highlights included a 2010 Mercedes-Benz Actros 4141 concrete pump truck that sold for $107,000, a 2009 Komatsu GD825A-2 motor grader that sold for $105,000 and a 2010 Caterpillar 365CL that sold for $220,000. In all, 1,920 lots were sold on behalf of more than 180 sellers, with more than 55% of the auction sold to non-UAE registered buyers, with 790 registered bidders from 62
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countries. 15% of the lots were sold to online bidders. “Having a summer auction in Dubai is always extra challenging with the extreme temperatures, but our team was well prepared and pulled off a highly succesful sale,” said Eduard Faig, the industrial auctioneer’s regional sales manager for the Middle East. “In fact, it’s been one of the best summer auctions we’ve seen in Dubai in recent years, with a fantastic line-up of machinery and a great crowd of on-site and online bidders. Particular strong performers in the auction were motor graders, rollers, mobile cranes and telescopic forklifts.”
News Round-Up
JOy GLOBAL PAyS $123M FOR MOnTABERT
CompaNy iNtElligENCE
Hydraulic breaker manufacturer Montabert has been purchased from Doosan by Joy Global, a player in the underground mining industry, for $123 million. Montabert had sales of approximately $100m in the fiscal year ending March 31, 2015. Despite tough conditions in the world’s mining markets, Joy Global is taking action to improve its business during the cyclical downturn to bolster its strategic position as a first-tier supplier to the underground hard rock mining market, including the Montabert acquisition, said president and CEO Ted Doheny. “This acquisition represents an important step in expanding product and service capabilities for hard rock mining, tunnelling and rock excavation, further diversifying the company’s commodity and end market exposures. The Montabert
WolffkraN has acquired the business of Uk tower crane rental company HtC plaNt ltd. the rental firm has an annual turnover of more than $63 million, a fleet of over 200 Wolffkran tower cranes and a staff of 370. according to Wolffkran, due to the longstanding partnership between the two companies and the strong position of HtC as a leading tower crane rental company in the Uk, no changes are planned to current business operations.
product line will complement our existing fleet of hard rock equipment and leverages our global service centre infrastructure, providing longterm value to our shareholders.” The announcement came as part of Joy Global’s release of second quarter operating results. The company reported sales of $810m during Q2, down 13%
on the same quarter in 2014. Montabert was founded in 1921 in Saint-Priest (Rhône) in France. It was bundled into the sale of Bobcat by IngersollRand in 2007, when Doosan paid $4.9bn in cash for Bobcat as well as Montabert and Geith. At the time, it was the biggest ever overseas acquisition by a South Korean firm.
JLG buys uK access equipment firm JLG Industries, part of Oshkosh, has purchased a UK access equipment firm specialising in the engineering and manufacturing of low-level access plants, Power Towers. The terms of the deal to acquire the Leicester-based manufacturer were not disclosed. Established in 2007, Power Tower offers seven lift models, both self-propelled and push around, that are rated for indoor and, in some cases, outdoor use. “This important acquisition strengthens our existing portfolio of low-level access lifts and demonstrates our commitment to the European market,” said Frank nerenhausen, JLG Industries president. “The addition of Power Towers products and people allows JLG to become an even stronger partner to our customers.”
The acquired firm employs about 30 people, all of whom will be retained through the acquisition. “We are excited to be joining JLG,” said Brian King, managing director of Power Towers. “It gives Power Towers the opportunity to realise its manufacturing potential and sales potential via JLG’s network, while staying true to our position as pioneers in the industry.” According to Karel Huijser, JLG’s vice president and general manager – EMEA, the purchase will expand JLG’s low-level access portfolio. “JLG and Power Towers share a common culture of innovation, simplification and ethical business practices. We look forward to sharing these products with our customers,” said Huijser.
iroNplaNEt is hosting an auction for surplus military machines from the UNitEd StatES dEfENCE logiStiCS agENCy (dla). the equipment, including trucks, trailers and construction equipment, is located on a US military base in germany and will be available to purchase through the firm’s website on Wednesday, 29 July. all maNitoWoC customers can now access its lift solutions software free of charge via its website, 3dliftplaN.Com. the application aids customers in lift planning, crane selection, rigging planning and ground-bearing pressure optimisation. the free access is the result of a new partnership between manitowoc Cranes and a1a SoftWarE, a company with more than 40 years of experience developing software for the construction industry. abu dhabi’s yaS mall has received two new ragNo XtJ 32/C aerial work platforms, manufactured by palazzaNi and sold through local dealer UNitEd gUlf EqUipmENt rENtalS. the two aWps, each with 32m maximum working height, have been provided in a hybrid configuration, with diesel engine + dC power execution, in order to operate outdoors with diesel and indoors with battery. they work indoors two hours a day for the window cleaning and general maintenance. their telescopic booms and telescopic jibs allow the machines to reach every difficult access point, requiring up to 30m of height and 14.5m outreach.
tENdEr UpdatES
1
Adrian Smith + Gordon Gill Architecture (AS + GG) has been chosen as the designer of the Burj 2020 tower, set to be the world’s tallest commercial tower. the tall-building specialist was appointed by Dubai Multi Commodities Centre, the master developer of the jumeirah Lakes towers (jLt) district, where the Burj 2020 will be located.
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Construction of $220 million the Pointe MALL on Palm jumeirah in Dubai is around 30% complete, according to the developer, nAkheeL. the project is set for shell and core handovers in the third quarter of this year, and will be complete in 2016, the developer of the manmade island said.
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News Round-Up
40 interchanges planned Qatar’s Public Works Authority (Ashghal) will build about 40 multi-level interchanges within the next four years as part of major road projects.
himoinsa installs 29 gensets for KsA rail
“HuGe” interest in sDLG GraDers, says me HeaD SDLG is seeing “huge” interest in its grader line, says its Middle East head, as the Volvo CEowned company looks to fill the gap left by the discontinuation of Volvo CE brand graders and backhoes. Graders and backhoes are traditionally more popular in emerging market economies, and the SDLG range was seen as a suitable alternative to the premium Volvo CE machines. This comes as SDLG sales are growing in volume in the GCC. Speaking at a press conference at INTERMAT in April, the president of Volvo CE, Martin Weissburg, said that in recent years SDLG had become “extremely strong in the Middle East”. “There are some markets in the Middle East where, of our products, SDLG has higher share than Volvo brands does,” said Weissburg. In some of the less-regulated markets, the SDLG motor grader is a “better fit” than the traditional Volvo grader, from a product positioning and price standpoint,. With most dealers dual brand dealers, there is a focus on converting existing Volvo customers on the grader and backhoe lines to the SDLG. “We don’t want to sell less machines in those markets.” Jan-Erik Erikson, head of SDLG in the Middle East, confirmed the firm is working with a “determined focus” to make up for the absent lines with SDLG products. “We
already are delivering motor graders into Oman, Saudi Arabia and Central Asia. The interest is huge. Backhoe loaders will follow later this year.” Two grader models are being sold: the G9220, which has an operating weight of 16,500kg and a blade base of 2,569mm, and the newer G9190, described as “a well-balanced machine with good traction and great blade down force” on SDLG’s website. Both machines feature a Dalian Deutz engine and hydraulic torque converter. According to Erikson, the SDLG dealerships are well established in the Volvo network across the entire Middle East, except in Iraq and Yemen, where there is a separate SDLG network. He believes the motor grader offering will also spur additional interest in other SDLG mainline products – including its wheel loader range – from road construction contractors. However, while there is a strategy to migrate customers on the discontinued lines, this won’t affect any other business areas, clarified Weissburg, who was appointed company president on January 1 2014. “We are quite purposeful in our product positioning between our premium Volvo products and SDLG. The differentiation is significant, we don’t see a cannibalisation of one brand to the other.”
Big plAns for DUBAi mEtro Dubai’s RTA has revealed plans to extend the metro lines to 110km by 2020 and 421km by 2030.
Spanish generator manufacturer Himoinsa has installed 29 gensets on the makkah-medina high speed rail, part of a large consignment of machines ordered by contractor Cobra. the 29 generators are equipped with iveco engines which operate in standby power to cover any network failure and to ensure continuity in the functioning of all the services of the stations and stopping points on the rail route. in all, Himoinsa will supply and install 38 gensets. additional units will be supplied with mtU engines. Cobra group was part of the winning consortium of contractors for the Haramain high speed rail project, of which 12 were Spanish and two Saudi.
quality tests by Cobra group found that the equipment met their demands as well as the technical requirements from the Saudi arabia ministry of transportation, the end user. Himoinsa’s subsidiary in dubai, which has a commercial technical team serving the entire region. helped give confidence. the generator sets can endure temperatures of 50ºC and are designed to operate in dusty environments, factors that can damage the generator filters and therefore affect operation. as a result, this type of equipment for desert areas is designed with tropicalised radiators with double varnish and anti-condensation resistance.
nEw rUlEs for inDiAn BlUE-collAr worKErs UAE-based companies seeking to hire Indian blue-collar workers will now have to get a permit from Indian missions to do so. All foreign employers looking to recruit Indian workers will need to register through the government’s eMigrate system. The registration application will then be vetted by the Indian Mission, after which the employers can seek a permit to either recruit directly or select from approved recruitment agents online, according to a statement on the Indian Embassy’s website.
September 2011 July 2015
CONSTRUCTION TIONTION CONSTRUC CONSTRUC MIDDLE EAST EASTEAST MIDDLE MIDDLE
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News Round-Up
MAnITOWOC WInS $192M CRAnE SUPPLy DEAL FOR US ARMy
the GMk4100B cranes will be customised for the uS military’s use.
Manitowoc Cranes has won a $192m contract to supply customised Grove all-terrain cranes to the US Army. Customised GMK4100B cranes will be supplied to the army over five years, with a two-year option at completion that would bring the total supply deal to $258m. Customisations to the crane, specified by the military, include the ability to ford water up to 1.2m and operate pile driver, clamshell, concrete bucket and concrete barrier lifting attachments. A crew protection system will also be installed to provide safeguards for soldiers operating or driving the cranes. The modified GMK4100B will have a 54.4t capacity and feature a 33.9m boom, and is built with a 390hp Mercedes engine and an 8x6x8 drive system. A two-step transfer case increases agility at low speeds. The customised GMK4100Bs will be built and tested at Manitowoc’s factory in Shady Grove, Pennsylvania. The first deliveries are anticipated to be between one and two years from now. Per specifications, each crane will be painted in Army colours and have the capability to be fitted with armour. The 390hp Mercedes engine will provide smooth and consistent power, both on- and
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off-road, to the 8x6x8 drive system. The two-step transfer case will also increase agility at low speeds. The Engineer Brigades division of the US Army will be the primary operator of the unique cranes, but other branches of the military will be able to procure similar units. “We’ve been working on this opportunity for more than four years, and this tender award is a testament to our unparalleled focus in delivering the best return on investment for the customer,” said Darryl Mellott, director of government marketing for Manitowoc Cranes. “The US Army had direct input on the customisation of these 60 US tonne capacity Grove GMK4100Bs, which will be optimised for their missions around the world.” Manitowoc will also design and build a simulator for the cranes that will enable soldiers to train without having to use the cranes themselves. The company will provide field representatives to the military and offer field-level support at any time, anywhere in the world through its Crane Care service. “These cranes will be especially transportable, reflecting the nimble manoeuvrability of the US military,” Mellott said.
Ksa LiKeLy to review nitaqat Saudi arabian authorities are likely to review the controversial Nitaqat programme, which is designed to encourage employment of nationals, following complaints about the difficulty of recruiting for certain types of jobs. Employer complaints, which have been endorsed by some ministries, state that the enforcement of Nitaqat has resulted in “work paralysis”. the majority of complaints focus on two issues – Saudi citizens’ lack of interest in some jobs, and places of work outside urban areas where employees have to stay for a specified period. an arab News report said that some ministries were forced to consider employer complaints after receiving studies and addresses from national committees affiliated to the Council
of Saudi Chambers (CSC) seeking a review of the system. in april, the labour ministry postponed the third phase of the Nitaqat programme to allow the private sector “more time to understand standards”. the news was greeted with relief by expatriate workers
and by the private sector as a whole. the CSC has put pressure on the ministry to postpone the implementation of Nitaqat’s third phase for three years, so as to avoid a labour shortage in the construction, manufacturing and sales sectors, reports added.
abu nasir buys 100t terex at crane Abu Dhabi-based Abu nasir General transport est has added a 100t capacity class terex allterrain crane to its fleet of mobile cranes, ranging from 80-500t. the terex AC 100/4 has a maximum boom length of 59.4m and system length of 81.7m. the crane will be used throughout the uAe on heavy and complex lifts in the oil and gas industry. Abu nasir performs regular work for oil & gas operators such as GASCo and ADCo, including major plant shutdowns – highly timecritical maintenance projects. “we chose this machine for its
quality and performance. At just 2.55 metres wide, it’s also the most compact machine in its class, which is extremely important when working in the confined spaces of the oil and gas sector,” said the firm’s operations manager, Asif Salim. “this latest crane from terex is also easy to operate and provides a high level of comfort, visibility and information for the operator, in addition to being the most flexible with the longest boom extensions.” Abu nasir was founded in 1976. its fleet includes hydraulic cranes, flatbed and low-bed trailers, transport vehicles and forklifts from 3-15t capacity.
September 2011 July 2015
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Kit Spotting
Terex CC 8800-1 Crawler Where: Placing a Saudi Aramco flare stack in Yanbu
N
ew environmental regulations for the petroleum industry in Saudi Arabia are changing the design parameters of refining equipment, including higher height requirements for flare stacks. Saudi Aramco has installed the first flare stack under these new environmental guidelines at a Yanbu plant. The structure was built to a height of 200m, with stack structure segments weighing from 21 to 104 tonnes. Due to the structure’s weight and height, coupled with difficult site conditions, heavy lift company Gulf Haulage Heavy Lift (GHHL) used its Terex CC 8800-1 crawler crane, which has a maximum lifting capacity of 1,600t. The lift had its challenges. The exposed position of the facility near the Red Sea meant that high winds were a factor, severely limiting the time crews had to complete each lift. “Every day at approximately 1100 hours, winds would increase from a light breeze of 2m/s to sustained gusts reaching 16m/s, and this would sometimes continue all afternoon and evening,” said Sanjay Pachisia, general manager of GHHL. Permissible lift wind speed levels ranged from 4.1m/s to 7.1m/s. The project also required a low ground bearing pressure of 12t/ sqm. The crane’s wide tracks helped disburse its weight over a wide area, and thick steel matting was also used. The CC 8800-1 was used in multiple boom and jib combinations, with the 108m main boom used for the lower level lift (of the heavier section), and the luffing jib added for the higher segments, configured for a system length of 216m. In all, the Yanbu Aramco Sinopec Refinery Project required 11 working days to complete the six complex lifts to finish placing the flare stack segments. Once completed, crews disassembled the CC 88001 crane and returned it to GHHL’s Dammam facility, 1,400km away, in total a 10-day process.
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Heavy hitters
A SAudI PowerhouSe The Saudi Arabia’s government’s vision for macro-economic growth is encouraging private companies such as Abdel Hadi Abdullah Al-Qahtani Group of Companies to grow and expand their total offering to the market, explains AHQ chairman Tariq Abdel Hadi Al-Qahtani
I
t’s an exciting time for businesses in Saudi Arabia. The stock market has recently opened to foreign investment, the Saudisation programme means more emphasis is placed on private sector hiring and the country has ambitious plans for investment in infrastructure. Meanwhile, the ongoing project to further diversify the economy beyond oil means businesses can contribute to the strategic direction of the kingdom. There are many signs that the kingdom’s vision is on the right track, says Sheikh Tariq Abdel Hadi AlQahtani, chairman of Abdel Hadi Abdullah Al-Qahtani & Sons Group of Companies (AHQ). “Saudi Arabia is one of the top 20 economies in the world, ranks 37 in phone line usage, has eight million internet users, ranks fifth for cargo, third in refrigeration cargo and ranks eighth in roll-on-roll-off cargo,” says AHQ’s chairman. It ranks 13th for chemical tankers, fifth in containers, eighth in passenger transportation and 20th in petroleum tankers, he notes. While the drop in the price of oil has generated questions about ongoing growth for the Saudi economy, the bigger picture is of sustained economic growth for the kingdom. GDP of $5bn in 1970 grew to $328.5bn in 2005, to $748bn in 2013. The oil price will have some effect on growth, but it will be limited, says Al-Qahtani, who makes a comparison with China, where GDP is also dropping but remains high by world standards. The government in China is carrying out major infrastructure development. “In Saudi Arabia, annual GDP growth is expected to reach 1.7 to 2.0% in 2020. But this is due to the ambitious projects that will be implemented in the next five years in different sectors, worth approximately $400bn, which assures that the kingdom is moving ahead towards a great renaissance.” Another bright spot is the increased role that manufacturing plays in the economy. The growth in manufacturing has vastly outstripped the growth in
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oil refining, says Al-Qahtani. “[KSA’s government] has ambitious plans to be totally independent in manufacturing process, in order to maximise the GDP that will lead to the prosperity of their citizens. As soon as we will accomplish our mega plans and projects, and the market becomes saturated, it will reflect upon the export and will show a very high percentage of the export value that will appear in the trade balance.” It’s an economic strategy that meshes well with the focus and competencies of AHQ. A diversified trading company with interests that include oil gas services, manufacturing and construction machinery, it was established in the 1940s, headquartered in Dammam, and is now one of the largest trading conglomerates in Saudi Arabia. More than 40 companies across numerous sectors cover a wide variety products and services, including water treatment facilities and pipe coating plants, as well as trading and contracting. It has a network of
“NoWADAyS THe CHANGe IS very rAPID. you HAve To Be Sure, KeeN AND AWAre WHeN you Are MAKING DeCISIoNS, AND you ouGHT To folloW THe STrATeGIC THINKING”
overseas companies in markets that include America and europe. With a group as large and diverse as AHQ, it’s essential that individual group companies be aware of the bigger picture and the needs of clients, explains Al-Qahtani. All sectors of the group are linked by a management information system (MIS). “This system guarantees that market intelligence reaches all the group’s companies at the same time, and assures us that our group members are selling the whole house,” he says. “our philosophy is that the client is always in the core of our attention.” The growth in manufacturing and the demographics of the kingdom – including the young average age of the population and the growing purchasing power of the middle class – are drawing foreign direct investment (fDI). This amounted to $18bn in 2011, says Al-Qahtani, but he expects improvements in the business environment to see the kingdom grab as much as 60% of GCC fDI in 2014, an increase from 35% in 2009. Growth is not limited to within the country’s borders. The government pays close attention to foreign investment, and the private sector has been set the task of integrating its investments in sectors where the country has limited resources. Irrigated land is one good example, with about 17,000 sq km of irrigated land within Saudi Arabia, says Al-Qahtani, out of its total land mass of 2.15 million sq km. “We look towards investments in other countries in order to fill in the needs and requirements wherever applicable, and follow the priorities in setting strategic decisions that could fill in any gaps.” The GCC railway network is also expected to boost opportunities for Saudi companies looking further afield. “Integrating the transport service with other neighbouring countries is significant expansion for the region that will lead to many investment opportunities in different sectors opening.” But the ongoing efforts to modernise the Saudi
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Heavy hitters
Arabian economy and ensure greater participation by locals have not been without difficulties for the corporates. Saudi Arabia regulators across many sectors are some of the toughest in the world. Meanwhile, the Nitaqat programme, designed to boost the number of local Saudi hires,led to slow-downs in some sectors as it was implemented. “The new regulations for foreign workers created some difficult times for us, but the results were remarkable after amending our system,” says Al-Qahtani, with improvements with respect to transparency and to determine the rights and obligations of workers. “It also brought an end to the unorganised processes that are not suitable for a modern market like Saudi Arabia.” ongoing growth in the private sector and Saudisation will require each organisation to have a plan for serious training for citizens, says Al-Qahtani, something which will allow them to participate in business processes at all levels, “and create for them a real opportunity to play a big role in their country’s prosperity”. While a rapidly growing economy with modernising rules creates challenges for businesses, it also creates opportunities. But these require companies to react swiftly. “Nowadays, the change is very rapid. you have to be sure, keen and aware when you are making decisions, and you ought to follow the strategic thinking,” explains Al-Qahtani. “My consultancy team offers many alternatives; each alternative is supported by SWoT analysis to make the best possible optimised decision.”
ExpandEd offEring Founded in Damman, Saudi Arabia in the 1940s, AHQ has grown to be one of the largest diversified trading companies in KSA. Its chairman, Sheikh Tariq Abdel Hadi Al-Qahtani, regularly features in GCC power lists of top Arab business leaders in the regional press. Core businesses include providing numerous services to the oil & gas industry, with its heavy presence in the Eastern Province, as well as diverse manufacturing businesses. Established in 1954, the Al-Qahtani Pipe Coating Terminal produces corrosion-protected pipelines for cross-country and sub-sea oil, water and gas pipelines, while other business units produce numerous industrial products, including ceiling systems, cartons and bulk food packaging, as well as water treatment and water bottling. Other areas include travel, tourism, transportation and custom clearance. AHQ has continued to focus on new business growth in line with the demands of a growing population. Later this year, the group will begin flying domestic routes within the kingdom with Saudi Gulf Airlines, a new airline that has received a significant number of new aircraft.
“I participate intensively in the process until we obtain a service that meets the Saudi standards. Then we create the operational system and select the key account teams until they take off, and I feel that they are progressing safe and sound. Afterwards, I move on to look for new opportunities.” Subsequently he follows up with the teams on a
monthly or quarterly basis, depending upon the business size and the management style being implemented. “I use different management styles, such as influencing, collaboration, directing or delegating, as well as mixes of these styles, depending upon the business phase, team and market circumstances.” Al-Qahtani uses the ‘train of T’s’ formula to build the structure of the business and its vision, he explains, with a focus clustered around concepts such as talent, technology, training, total quality management, building trust and reaching total customer satisfaction. “Personally, I believe that the real investment is in the people. They represent the real wealth. A harmonic team spirit can take the organisation to higher levels and standards so that they can achieve all objectives, and move ahead for a positive future along with the group.” looking forward, he believes that private sector companies need to be attuned to the wider macro vision of the government, rather than looking at the micro-economic details. He sees the macro vision as presenting an opportunity for major growth over the next decade. Al-Qahtani says the direction and strategy provided to private companies in KSA by the government has given them an opportunity to grow both vertically and horizontally, ultimately increasing their total offering to customers. “This has led the organisation to have ambitious plans, with new sectors that will allow us to expand our services and tackle new sectors, to integrate our services in a comprehensive solution package.” At the recent Construction Machinery Show in Dammam, AHQ’s business unit Al-Qahtani Vehicle & Machinery Co. had a large exhibition of LiuGong machinery, including an impressive robot figure.
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1/3 Meanwhile… itʻs make-or-break time at the demolition site.
But thatʻs just business as usual for this beast of a machine. No loadʻs too heavy, no space too tight, no terrain too rough.
S450 The dayʻs hardly started, and yet this jobʻs already done and dusted.
Power meets comfort! With increased hydraulic power and a gargantuan grip, this skid steer loader is pure muscle. While the re-engineered cab keeps you comfy as you maneuver quickly and surely – doing more, faster and better.
UP NEXT ... A DEEP SEATED PROBLEM
Feature
Coping with the heat Modern air-conditioned cabs keep workers fresh and more efficient for longer, but not all contractors are willing to invest in newer machines, reports David Thompson
t
he unrelenting summer heat puts extra strain on construction workers throughout the Middle East, yet despite technological advances in modern cabs not all operators of construction machinery are seeing the benefits, as some contractors are slow to upgrade fleets to air-conditioned machines. The introduction of the midday working ban protecting labourers from high temperatures and direct sunlight undoubtedly saves lives, but despite this government policy, unforeseen health and
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productivity pitfalls remain, especially for drivers operating in the hottest months. Design of modern construction machinery, including dust-proof, sealed and air-conditioned cabs, can help drivers to combat exhaustion and stay focused, boosting overall job-site productivity. But these benefits are overlooked by some contractors and company owners in the region, due to the cost of upgrading fleets with driver-friendly machines. Saif Abadan Khan, sales manager at GENAVCO in the UAE, notes that a number of their clients in the region have purchased machines with air
conditioning from GENAVCO, and they agree that the extra expenditure is worthwhile when it brings better performance and productivity from operators in the long run. “During the hot weather, the most important thing is that the operator should be working in a comfortable environment, but contractors still don’t want to invest in the air conditioning of the machine,� he says. Khan acknowledges that contractors and company owners are beginning to discuss the issue, and suggests it should become an industry standard in
High idle times
cause high fue l burn.
Working in high heat can cause health problems.
Abu Dhabi to educate workers about heat stress, midday break
“ThErE iS SpECUlATiON iN ThE iNDUSTry ABOUT A rEViEw OF GOVErNMENT GUiDEliNES rEGArDiNG CONSTrUCTiON hEAlTh AND SAFETy lAwS, iNClUDiNG TAlK OF A pOliCy CONCErNiNG Air CONDiTiONiNG iN DriVEr CABS, NOT CUrrENTly A lEGAl rEqUirEMENT”
The Abu Dhabi City Municipality has launched a campaign to educate construction workers about the dangers of working in the heat, and broaden knowledge about the midday work ban that went into effect nationwide. In collaboration with the Abu Dhabi Occupational Safety & Health Centre (OSHAD) and the Ministry of Labour, the municipality held a workshop for 650 contractors and consultants to raise awareness among those managing construction sites and environment, health and safety specialists. According to a statement by the municipality, it is also working on training and educating labourers at construction sites about the health risks of exposure to direct sunlight and to administer first aid to heat-stricken workers. Additionally, the government body is looking to broaden workers’ knowledge about the summer work ban between 12:30pm and 3pm, which is enforced in the period from June 15 to September 15 every year at most outdoor work-sites. Consultants and contractors have been called upon to take appropriate measures such as providing large quantities of drinking water, appropriate cooling systems and umbrellas. Other practices that can be adopted include organising working hours, adopting a shiftwork system and training supervisors and workers to adapt to the work environment. Symptoms of heat stress include excessive sweating, headaches, nausea, dizziness, muscle cramps, weakness and fatigue, drowsiness, loss of concentration, irritation and low blood pressure. It can also cause fainting, heat stroke and, in severe cases, death. At the onset of symptoms, the municipality advises workers to take safety measures such as moving to a cool and shady place, trying to reduce body heat by fanning or applying a damp cloth, and taking a cool salinised drink to replenish lost fluids. Workers are also encouraged to notify a supervisor on-site and visit a clinic to receive the necessary first aid. Inspection teams from the municipality will regularly monitor construction sites for violations of the work ban. If contractors and consultants fail to adhere to the regulation despite a first warning, project operations might be suspended altogether, the municipality warned.
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Feature
If drivers are protected from the heat by air-conditioned cabs, they are able to work with high productivity during the hot summer months, when high temperatures cause fatigue for operators in non air-conditioned cabs.
the region. looking to the future, he anticipates growing pressure on the construction sector to address driver safety and comfort, especially in the relentless summer months, citing more advanced policy and procedures in other parts of the world as evidence of the industry’s responsibility. These thoughts are echoed by Bassem Al-Bermawy, field marketing manager at CNh industrial in the UAE, who highlights both the mechanical and human concerns of heat exposure. “Of course our clients request air conditioning, and this is a major thing we take care of in the design of our machines. it has to suit the temperature, heat can kill and damage any mechanical device or mechanism – this is what we focus on in our designs, so as to appropriately meet the needs of our clients.” Bermawy points out that most CNh industrial machines are equipped with special radiator and air conditioning technology to suit the specific climate of the region. This includes a reversing fan feature which blows out dust, a revolutionary design which is more efficient and reduces machine down time, in addition to improving worker productivity – two major cost-saving factors in the Middle East. hindering progress is an additional and persistent concern that operators will abuse the air conditioning features of machinery by parking to enjoy cool air without actually working – letting the engine run on idle. There are some technical solutions to the problem of high idle times, including using machine monitoring via telematics systems to monitor the idling patterns of individual operators. Some manufacturers offer engine idle management
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Project productivity often falls during the summer months.
KSA contractors claim work ban adds 8-10% to project costs The National Committee for Contractors in the Council of Saudi Chambers has submitted a request to the ministry asking for additional time to complete projects, claiming that work and productivity at night cannot be the same as during daytime hours, according to local media. “Naturally, projects lose out on the benefits of daytime work during these three months, and if the project timeframe requires up to two or three years, contractors lose out on six to nine months of efficient daytime labour, which in turn creates additional problems and delays
for the projects,” says Hani Mufi, a member of the National Committee for Contractors in the Council of Saudi Chambers. The Ministry of Labour says the new work schedule will run for 93 days over the summer months, from June 7 to September 1. Mufi adds that the change in scheduling means contractors will have to re-organise their project sites to create safe and efficient work environments. He says the ministry allows employees to work on other activities during the restricted time, provided shade and air conditioning is supplied, which incurs additional costs.
When seeking to employ nightshift workers, Mufi complains that they would have to be given overtime pay, which would increase project costs further. Mufi says one of the main aspects requiring more effective communication with government agencies is the issue of government project delivery committees, which only work during the daytime and rarely work at night. As a result, this limits the availability of specialists, engineers and labourers to take note of certain issues during the project delivery stage and creates additional delays.
“DUriNG hOT wEAThEr, ThE MOST iMpOrTANT ThiNG iS ThAT ThE OpErATOr iS wOrKiNG iN A COMFOrTABlE ENVirONMENT” -
systems, which drop engine revs to extra-low levels when the machine is left in idle. Manufacturers offer differing opinions on the viability of the objection by contractors that operators will allow machines to stay in idle to keep the cab cool. The consensus is that ultimately productivity has benefits, as does worker safety, the two key selling points of air-conditioned machines. The fact that this could be overlooked for the sake of short-term savings and potentially sly employees highlights the need for greater research to inform the debate and to move the industry closer to a long-term solution. Encouragingly, there is speculation in the industry about a review of government guidelines regarding construction health and safety laws, including talk of a policy concerning air conditioning in driver cabs, which in many states, including the UAE, is not currently a legal requirement. if these guidelines are issued from governments in the Middle East, the contractors will follow suit, as seen following the effective midday working ban. At present, without official instruction to do so, some contractors are unwilling to lose additional and often significant profits for the sake of the comfort and safety of the construction machinery operator. And as the heat continues, firms that invest in newer machines will reap the benefits, as sharper, cooled operators are more productive.
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Feature
Small iS beautiful
Sales of mini-excavators and other compact equipment are growing as contractors see the benefits of smaller machines, including lower fuel costs and reduced manpower on-site
W
hile traditionally contractors have preferred larger machines, high fuel costs and a desire to reduce manpower by improving efficiency on-site is seeing many invest in light and compact equipment. This effect is most pronounced in the UAE, says Manhal Al-Chalabi, Wacker Neuson’s regional manager for Middle East & North Africa, due to the reduction in diesel subsidies, which has seen the price rise almost 100%.
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“ThE poWEr, hANdliNg, sTAbiliTy oF ThE CoMpACT TrACkEd loAdErs is oUTsTANdiNg”
“Contractors have started to become aware of the benefits of using mini-excavators. Five years ago, they would say they did not need it, since they already have an excavator. Now, because diesel is very expensive in the UAE and getting more expensive, contractors want mini-excavators.” While there is no comparison with the miniexcavator market in Europe, it is growing. but the change hasn’t come overnight: Al-Chalabi says they’ve spent more than five years educating the market on the benefits of mini-excavators. “it has
Millionth BoBcat loader Models go on sale Bobcat has begun selling its range of One Millionth Bobcat Loader models. A buyer in Spain was the first to buy one of the specialedition loaders, which feature a customised paint scheme and decals commemorating the feat. Along with special reinforcements on the tyres and decorative chrome elements and metal reinforcements across the machine, the commemorative range incorporates features and extras not present on other Bobcat machines, including black non-slip sheets on the lower rear struts, cushioned boom cylinders and a specially designed two-tone leather air-ride seat. Marcos Marín, the official Bobcat dealer for over 39 years in the Murcia and Alicante zones of Spain, has announced that his company has sold the first of these One Millionth Bobcat Loaders in Spain, an S650 skid-steer loader model, to Coysa Viguer, an established customer based in Santa Cruz (Murcia) and operating mainly in the public works market. Owner José Vigueras says he purchased this particular Bobcat model for a reason as special as the machine itself. “We’ve always preferred the Bobcat brand, from the very beginning. I found out about this machine on my son’s birthday, and he’s part of the company. I couldn’t imagine a better gift for him.” “Obviously, it was a huge surprise for him. The machine
was delivered during a dinner party we hold every year for our employees and friends, which coincides with my son’s birthday, in a festive family atmosphere. Marcos Marín’s sales team went to the restaurant that evening and parked the machine at the entrance, after decorating it with a big bow. Marín officially handed over the keys himself. “We now have six Bobcat compact loaders, including two S300 models, two 753s and a 453, as well as this special limited edition Bobcat S650 One Millionth Bobcat Loader, commemorating the million loaders produced by the company. Right now, we can say that we’re the only company in Spain who owns one of these limited edition models, and we may continue to be. We haven’t heard about any other company having one. We’re the exclusive owners of a historic machine, and that gives us enormous pleasure.” The Bobcat S650 belongs to the new generation of compact loaders which features the Premium Cab, with an extremely comfortable, forward-positioned design that moves the operator closer to the attachment, providing unsurpassed omni-directional visibility around the machine, as well as boosted power and hydraulic performance for higher productivity. Bobcat produced its one millionth loader in 2014, more than 60 years after the machine first began production in 1958.
The Millionth Loader Model.
With higher diesel prices in the UAE, contractors are looking at the versatility of smaller machine to help them reduce running costs, including fuel and manpower.
been hard work over five years, but the results are starting to come now.” Contractors spotting other companies using miniexcavators is helping grow demand, and they also understand their suitability for specific jobs, such as landscaping and breaking in confined areas. The most common applications for mini-excavators are using hydraulic breakers and buckets. The company is even seeing interest in some of its newest launches, including the one-tonne dual power mini-excavator, which can run either with the usual diesel engine or with an electro-hydraulic generator which allows the machine to be operated emission-free for indoor applications. Al-Chalabi says contractors will buy this machine for the breaker applications in enclosed areas. Using equipment to reduce manpower is another development. The UAE is leading the way, says Al-Chalabi, followed by Qatar and oman. The presence of international contractors who have experience working on job-sites in Europe and elsewhere is a driving factor, he explains, though less so in saudi Arabia. “[international contractors] know the modern machines, and want to use them. in saudi you don’t have that so much, but they are slowly opening and adapting. it’s a matter of time.” The desire to reduce manpower also means investment in higher productivity machines. in the field of compaction equipment, using a machine with high compaction force can reduce manpower, since instead of doing five passes, it requires only two, Al-Chalabi explains. Their internal vibrators, which have a very powerful motor, produce a bigger compaction diameter, reducing the total time it takes to finish an area when concreting. “our machines are not the cheapest, but if you
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Feature
“CoNTrACTors hAvE sTArTEd To bECoME AWArE oF ThE bENEFiTs oF UsiNg MiNi-ExCAvATors” look at the total cost of ownership, they come out on top. Maintenance and lifetime durability is really on our side,” explains Al-Chalabi. “All our products are durable and can cope with the heat.” site dumpers also save time and manpower. They have a special appeal to English contractors due to their heavy use on construction sites in the Uk. Wacker Neuson has a wide range, with payloads as small as 500kg, up to 10t. The introduction of a new series of dumpers saw sales increase. The dumpers feature hydrostatic transmissions and four-wheel hydraulics, higher specs than some of the competitor machines. “Customers – especially the English customers – like to use them on their site to move rubbish and to move concrete,” says Al-Chalabi. Wacker Neuson has launched a number of new machines this year, but one to watch is the alliance with Wirtgen group to produce rollers at the hamm factory in germany. This enables Wacker Neuson to close gaps in its product portfolio and round off its offering in the soil and asphalt compaction segment, by offering tandem and combination rollers weighing 1.8-4.5t, plus compactors weighing up to seven tonnes. While there is no plan to immediately introduce the machines to the gulf – they’re being Bobcat’s compact tracked loader (CTL) range can be fitted with a grader attachment, allowing precise work using a larger machines. Recent successful demonstrations have been carried out on golf courses in the UAE.
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atlas copco launches new concrete Machines Atlas Copco has added to its comprehensive lineup with new concrete equipment, including SVE/ SVG-truss screed, BG-series trowels and WTS830 spreader wagon. The new machines will broaden the offering for both operators and rentals. The SVE/SVG screed is a lightweight complement to Atlas Copco’s well-known heavy-duty BT90 modular screed. The SVE/SVG can handle the 25m concrete pours needed for tunnel, road and exhibition hall construction. A single operator can assemble the screed without special tools. The SVE/SVG is made especially for medium- to high-slump concrete with less pulling resistance, unlike the BT90. Atlas Copco has designed the SVE/SVG to be lighter and more mobile, which makes production more effective in the right conditions. The modular screed can be equipped with both a petrol engine and an electric motor, and is compatible with older Tremix truss screeds. Improved safety is a key feature of Atlas Copco’s new range of walk-behind trowels. The new series includes the BG245 E/G, BG375 G, BG475 G and BG COMBI E with gasoline (G) and electric (E) propulsion. New for the series is the centrifugal clutch, available for every model with gasoline engine. The centrifugal clutch complements the well-known Quickstop solution and is a popular choice with many
customers. It is a proven solution that engages if the operator lets go of the handle by mistake, and is guaranteed to stop the trowel within the 180-200° range, well before the handle completes a full turn. All new trowel models have additional safety updates. The belt cover is fitted with a secure tightening technique that means the operator can’t access the belt by mistake. The blade guard rings have gone through further development to make operation even safer. The WTS830 is a new hand-pushed wheeled topper spreader that helps create a perfect finish and can add colour to the concrete slab. The WTS830 is lighter than other comparable spreader wagons, and has a mesh drum that anchors the topping to the slab and reduces dust during operation. The spreader wagon is easy to push, and the lack of engine exhaust fumes makes it safe for indoor work.
25m The lightweight SVE/SVG screed can handle the 25m concrete pours
Mini-excavators prove their worth in demolition applications where machines have to work in confined spaces.
rolled out first in European markets – the rollers will be here sooner rather than later, confirms AlChalabi, within a year or so. bobcat is naturally keen to see greater use of small machines on Middle East job-sites. With its domination of the skid-steer market the firm sees opportunities for the brand to expand its sales across its other product lines, says gaby rhayem, bobcat’s regional director for Middle East and Africa. The firm recently launched new mini-excavators, which are “fantastic machines” with high reliability, he says. These are the E17, E18 and E19, with operating weights of 1,700-2,000kg. The new models are towable on trailers for up to 2,000kg, with transportability further enhanced by new tie-down points. Features include an expandable undercarriage, automatic slew brake and advanced diagnostics and instrumentation. While the mini-excavator segment remains small in the Middle East, it is growing, says rhayem, with typical applications including smaller contractors executing villa projects, where the machine can be used to dig a swimming pool. The company is also pushing its tracked loader range, which can achieve high performance
”iNTErNATioNAl CoNTrACTors kNoW ThE ModErN MAChiNEs, ANd WANT To UsE ThEM. iN sAUdi yoU doN’T hAvE ThAT so MUCh, bUT ThEy ArE sloWly opENiNg ANd AdApTiNg” with a number of attachment options. it recently launched its tool carrier initiative, providing dedicated attachments to fit with specialist customer applications. recent demonstrations at golf courses in dubai have proven the versatility and application of attachments, including the grader attachment, wheelsaw trencher and a v-blade, used on a compact tracked loader (CTl). Using a smaller grader on a CTl – which can be operated using the latest-generation 3d modelling and surveying grade control – has major benefits over larger machines on smaller sites such as golf courses, and rhayem says the demonstrations translated into sales.
At a bobcat event last year at their Czech factory in dobríš, journalists were given a vivid demonstration of some of the compact tracked loader’s advantages over ordinary skid steers, including its ability to drive at speed up steep slopes on loose ground. its tracked pads also distribute weight over a larger surface area for less ground pressure, meaning there’s also less chance of damaging pipes underground or the surface contour. “The concept of the compact track loader is still not known,” says rhayem, who notes it is particularly well suited to sandy conditions, where it is less likely to get stuck than a wheeled machine. “The power, handling, stability of the tracked loaders is outstanding.”
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News analysis
Rising foRtunes Many Japanese construction machinery producers fared well in the Middle East in the past year, with the weaker yen helping them ride out volatility in global demand for construction and mining equipment
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D
espite efforts to diversify its manufacturing base, the sales volume of many Japanese producers of construction machinery can be heavily influenced by the yen. while in the past this has led to some difficulties on the price front, in recent times a weak yen has been a boon to Japanese exports. while $1 was as low as 75 yen in 2011, it now sits above 120, a level not seen since 2007. that means that while gCC economies see some negative effects from the higher dollar, such as lower inflows from tourists, it gives them good purchasing power when it comes to imports, whether cranes, bulldozers or excavators. komatsu is the unrivalled powerhouse among Japanese kit sellers, and in the financial year ending March 2015 managed to grow its sales by 1.3% to $16bn, during a period when many of its competitors saw sales fall, with difficult market conditions, especially in mining. this growth was due to the depreciation of the yen against its major trading partners, the dollar, euro and renminbi. In unit terms, komatsu sales dropped, due to “slack demand” for construction equipment in emerging countries and for mining equipment. In the Middle east, sales grew 9.8% to hit $493m, up from $449m the previous year, making the Middle east the best-performing region in komatsu’s basket of strategic markets. according to its annual report, demand in turkey, the region’s major market, was slack. Nevertheless, while crude prices dropped sharply, demand in the gulf advanced steadily,
$493m Komatsu’s sales in the Middle East, up 9.8% from the previous year
particularly in saudi arabia, Qatar and the uae, and sales increased from the previous fiscal year. globally, while demand declined for new construction and mining equipment, komatsu sold a record number of after-market parts and captured a greater share of the market. the company expects demand for parts to continue to grow due to its large machine population, and is expanding its product mix of strategic parts, such as buckets, teeth and track shoes, as well as attachments. It is also hoping to improve the efficiency of spare parts delivery, with a new parts operation model first implemented in its kanto spare parts distribution Centre, opened in august last year. komatsu plans
to introduce the upgraded operations model to its 18 other major parts distribution centres around the world, in a bid to reduce spare parts inventories. It will also strengthen its reman (remanufacturing of components and their sales) supply operation. the firm is continuing to invest in smart technology, such as machine control and telematics; its telematics programme, koMtraX, has now been mounted on over 370,000 units. tadano revenues in the year ended March 31, 2015 passed $1.6bn (200bn yen) for the first time, as net sales grew 12.3%. Mobile cranes made up roughly two thirds of sales volume. In the Middle east, tadano’s sales were $138m, a slight drop from their high in the full year 2013 of $147m, but a strong performance given the longterm trend. In the year ending april 2013, their sales were just $81m. By its own estimation, tadano’s share of the global market for hydraulic mobile cranes grew from 26.9% to 31.4%, excluding Chinese and russian production. In the Middle east, tadano calculated demand to be 878 units, made up of truck cranes (67 units), roughterrain cranes (522 units) and all-terrain cranes (289 units), again excluding Chinese sales. with sales of 372 units, tadano’s share of sales of mobile hydraulic
“IN the MIddle east, koMatsu’s sales grew 9.8% to hIt $493M, up froM $449M the prevIous year”
Kobelco Construction Machinery and Kobelco Cranes seem likely to be merged by parent company Kobe Steel, with the company giving consideration to integrating the two companies from April 1, 2016.
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News analysis
Tadano ships thousandth unit of new rough-terrain model GR-800EX has been popular in the Middle East for energy projects since 2011 Japanese crane manufacturer Tadano has celebrated shipping its thousandth 80t roughterrain crane, the GR-800EX, a model launched in “chaotic circumstances” in 2011, as a result of the earthquake and tsunami that year. This caused damage among Tadano’s supply chain and its suppliers, says Koichi Tadano, president and CEO of Tadano, resulting in
Kobelco Cranes saw its sales rise an impressive 40% in the Middle East across the 2014 fiscal year ended 31 March 2015, although in absolute terms volumes remain small, said the company.
cranes in the Middle east sits at 42.4%, according to its own estimation. It’s a total that fits with the company’s long-term goal of becoming the number one firm in the lifting equipment (le) business, and boosting its overseas sales to around 80% of its total volume. a recent briefing on fy 2014 financial results noted some of the difficulties for the lifting industry, including high volatility for demand in the short and medium term, despite long-term growth. It also noted low spare parts sales: in 2014, its part sales ratio was just 6.3%, low compared with brands selling earthmoving equipment. In the same period, komatsu had a parts sales ratio of 19.6%, and hitachi Construction Machinery (hCM) had a ratio of 21.4%. despite tough global conditions, hCM managed to grow its annual sales by 1.6%, hitting $6.6bn. In the Middle east, the firm has focused on increasing sales
42.4%
Tadano’s estimate of its share of mobile hydraulic cranes sale in the Middle East
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a temporary shut-down of the rough terrain crane assembly line. Many customers were not able to receive machines they had ordered. “The GR-800EX was introduced to the market under chaotic circumstances. However, it has come to have a reputation for its reliability, high quality and environmentally-friendly performance, especially in energy development
job-sites – mainly in North America, the Middle East and Russia – and mining job-sites.” Tadano notes that the huge fluctuations in the exchange rate of the Japanese yen, which often have a negative impact on exports from Japan, has not blunted customer demand. “After the exchange rate stabilised and became more favourable due to the weaker yen, GR-800EX production accelerated, and we achieved the milestone of one thousand units produced and shipped within the outstandingly fast period of four years.” The crane is popular on job-sites where harsh environmental conditions affect performance, while the importance of the job makes it difficult to replace cranes experiencing down time, explains Tadano. Technical features include one of the highest boom capacities in class, with a rounded boom made of lightweight high-strength, high-tensile steel. Higher fuel efficiency is achieved via a fuel monitoring system, an ecomode system which reduces fuel consumption by adjusting the engine speed during crane operation, and a positive control system, reducing fuel consumption by hydraulic pump displacement restrictions during engine idling. The crane also features Tadano’s AML L safety monitoring system with asymmetric outrigger extension control, to make maximum lifting capacity available for each configuration and ensure that the safety controls cannot be turned off by the operator.
Komatsu sells 55 super-large dumpers With the global mining industry in a major cyclical downturn, companies are cutting back heavily on capital spending. This is having a big effect on producers of large mining equipment, especially the big guns – Komatsu, Hitachi CM and Caterpillar. Coal miners have been hit especially hard, with low prices and falling stock prices, as well as pressure from many activists and large institutional investors to divest from coal due to concerns about its role in climate change. But due to the demanding nature of the mining industry, miners are still having to invest in spare parts, and even in new equipment. Komatsu recently announced the sale of 55 super-large dump trucks to Adani Mining, which operates the Carmichael coal mine in Queensland, Australia. The 960E-2 and 930E-4SE units are slated for delivery from the second half of 2016. When operational, the Carmichael coal mine will be one of the world’s largest. Adani Mining in Australia is part of the Indian Adani conglomerate and the Carmichael project is part of the Adani Group’s large project to bring the energy supply chain of mine, railway, ports, shipping and electricity production in India together in one conglomerate. The mine is expected to deliver 10,000 jobs and $17bn in taxes and royalties over the half life of the projects.
mainly from infrastructure-related projects in the gulf and in turkey, and it was able to grow sales by 11.7%, to $174.4m. hitachi expects market demand for hydraulic excavators to fall 7% in the current year, compared with growth of 9% in the 2014 fiscal year (ending 31 March, 2015). that’s in line with the company’s predictions for total global demand this year, which it expects to fall by 7%; bucking that trend will be India and oceania, while most of the other markets will decline. In 2014, Jv tata hitachi Construction Machinery (thCM) began shipping its gI series of hydraulic excavators to the Middle east and africa, with 80 units shipped. this year it expects as many as 200 to be sold in the Mea region. kobelco Cranes reported strong results for the Middle east: 40% sales growth in the Middle east
“koBelCo CraNes estIMates Its Market share to Be 30% of the gloBal Market for Crawler CraNes” Komatsu’s telematics programme KOMTRAX has now been mounted on over 370,000 units sold worldwide, according to its annual report. The technology can detect faults and improve machine up-time.
for its 2014 fiscal year, ending 31 March, 2015. the company noted the exchange rate averaged 109.76 yen to the dollar during the 2014 fiscal year. the high growth in Middle east sales came as a result of demand from an increased number of energy-related projects, although kobelco’s “absolute number” of sales is not high, said the company. kobelco Cranes shipped close to three thousand units over the 12 months, with 500 cranes sold in Japan (an increase of 20% over the previous year) and 2,400 shipped to overseas markets, where the brand recorded growth of 10%. the main growth areas were apaC (asia-pacific), with 20% growth, and North america, with 10% growth. sales were “steady” in europe and North
È7%
Hitachi estimates market demand for hydraulic excavators in the Middle East will drop this year
america, while in China, which accounts for roughly 35% of the world market, sales declined by 10% as the expected economic recovery was delayed. with total sales of $596.5m, kobelco Cranes estimates its market share to be roughly 30% of the global market for crawler cranes, including its oeM supply agreement with Manitowoc. there may also be a merger on the horizon for the two kobelco companies, kobelco Cranes and kobleco Construction Machinery, which produces hydraulic excavators. Both are owned by kobe steel. a recent release said that consideration was being given to a merger, while at the same time stating that the consideration would have the aim of “integrating the two companies on april 1, 2016”. with joint revenues of around $3.24bn (400bn yen), they account for 20% of kobe steel’s total sales. while the united states is the key target market for kobelco excavators, with the company deciding to build a new excavator plant there last year, the Middle east is also a focus. “establishing a presence in the global market – including India, the Middle east and other emerging countries and regions where demand is anticipated to grow – is an urgent issue for kobe steel’s construction equipment business,” said the company in its release.
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Records
For the record... If you want to make a point about your product, one of the best ways is by setting a world record. CMME surveys some of the records that define the industry
g
uinness World Records celebrates its 60th anniversary this year. What in 1955 was originally intended as a marketing ploy – a free giveaway – is now the bestselling copyrighted title of all time, and one of the world’s best-known
brands. The publication is a popular way for individuals, corporations and even nations to prove a point. But it’s never easy: the record company receives around a thousand applications a week, but fewer than 5% of these ever attain a Guinness World Records title.
A long time pouring
P
ictured here is the former world record for largest continuous concrete pour in Los Angeles, where contractors working on the Wilshire Grand used 208 individual trucks delivering concrete from eight production centres, as well as nineteen separate pumps feeding 13 hoses, to pump 16,208.6m³ of concrete over 18 hours. The
Feat: Largest continuous concrete pour Record holder: Lakhta Center Multifunctional Complex (Russia) Date: 27 February-1 March 2015 Guinness World Record: Yes
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feat took place in early 2014, with Michael Empric, the Guinness World Records official adjudicator on the scene, describing the coordination needed: “It was kind of like a ballet of trucks, moving in and out all night, to get this record done.’’ But the feat was not to stand: early this year, contractors in Russia smashed the record with a
continuous concrete pour of 19,624m³, achieved during the pouring of the foundation for the Lakhta Center Multifunctional Complex in Saint Petersburg, from 27 February to 1 March. The pour took just over 49 hours, with concrete delivered to the site from 13 different production plants, no doubt a significant logistics challenge.
unbelievably strong
Feat: Heaviest weight lifted by a crane Record holder: Taisun crane at Yantai Raffles Shipyard Date: 8 April 2008 Guinness World Record: Yes
W
hile mobile cranes are commonly used for major lifts, it’s no surprise that the heaviest lift ever recorded was by a stationary crane. On 18 April 2008, the massive Taisun crane at Yantai Raffles Shipyard, Yantai, China achieved a worldrecord lift of 20,133 tonnes, lifting a barge ballasted with water.
40t eFFiciency boast
F
uel-efficiency isn’t just the domain of ultra small cars as Mercedes-Benz managed to prove when it set a world record for the 40-tonne truck weight segment in 2008. During test-drive conditions at the High Speed Track in Nardò, Brindisi, Italy, the Actros was found to use 19.44 litres per 100km. The average value was established by driving the truck for one week, 24 hours a day – over 12,728km on the test track. The truck hauled over 25t of payload at an average speed of 80 km/h around the test course, which was monitored at all times by DEKRA, an independent testing firm for trucks. Feat: Most efficient 40-tonne truck Record holder: Mercedes-Benz Trucks’ Actros Date: 29 May 2008 Guinness World Record: Yes
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Records
lArge body hAuler
W
hen you need a large-body dumper for hauling mined material, sometimes only the largest will do.Turn to Belarusian manufacturer Belaz, whose 75710 mining truck holds the Guinness World Record for the largest mining truck body, with a volume of 645.4m3. This is matched by the highest rated payload capacity, at a total of 450t. The monster hauler is powered by an electric drive system consisting of four electric motors from Siemens, each with an output of 1,200kw (approximately 1,800hp), that keep the 800t-plus GVW vehicle moving. The truck is more than 20m long, almost 10m wide and 8m high. It weighs 360t when empty and can transport around 450t of cargo, a volume that corresponds to a fully loaded Airbus A380 airplane. Feat: Largest mining truck body (volume) Record holder: Belaz Date: 22 January 2014 Guinness World Record: Yes
no child’s plAy
C
aterpillar has unveiled a number of ‘Built For It’ feats, where its equipment performs in extreme environments or saves the day. One of these set a Guinness World Record for the largest sandcastle, measuring 12.59m, in Rio de Janeiro, Brazil. A variety of machines – wheel loaders, excavators, a motor grader – built the huge sand structure, using 20 truckloads of Brazilian sand. But it didn’t last long: the promotional video shows the sandcastle being pulled down by an excavator after the world record has been measured.
Feat: Largest Sandcastle Record holder: Caterpillar Date: 11 November 2014 Guinness World Record: Yes
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Feat: Longest truck-mounted jib / boom / crane arm Record holder: Zoomlion Date: 28 September 2014 Guinness World Record: Yes
extreme concrete pumping
Z
oomlionhasn’t been shy about showing off its world-record truck-mounted concrete pump, with a boom that extends 101m. Designed to be used for major projects as part of China’s ongoing infrastructure programme, the massive pump is mounted over a seven-axle Scania truck. The pump has a seven-section boom, with the last four sections built from carbon
fibre, helping the boom’s strength and stability. The pump toppled the previous record of 86m, held by Zoomlion’s rival in the concrete pump industry, Sany. Prior to that pump, Zoomlion had been the holder of the record, for an 80m pump. Zoomlion also has the Guinness World Record for the longest tower crane jib, 110.68m, measured in Changde, Hunan, China on 28 August 2012.
pumping up the burJ At 828m, the Burj Khalifa is the tallest building in the world, so it’s no surprise that records were broken during its construction. Putzmeister used a specially-designed BSA 14000 SHP-D concrete pump to reach a world-record vertical concrete pumping height of 606m (not a Guinness World Record). “This extreme pump height was possible due to the trust and cooperation developed between the Samsung-led team, the concrete supplier and pumping service for the project, Unimix, the local Putzmeister agent German Gulf Enterprises (GGE), as well as Putzmeister Concrete Pumps GmbH,” said Christian Stirm, application engineer at Putzmeister’s global headquarters in Aichtal, Germany. Unimix deployed a carefully designed concrete placing system including two Putzmeister BSA 14000 SHP-D trailer-mounted concrete pumps and a BSA 14000 HP-D trailer-mounted concrete pump; a carefully engineered delivery line system; four non-ballasted stationary placing booms (three MX 28-4 T and one MX 32-4 T placing booms); and various truck-mounted boom pumps. For the duration of the Burj Khalifa project, high compressive strength concrete mixtures were used, and pours were only done at night because of hot temperatures during the day. Concrete was chilled in the concrete plant prior to preparation, and part of the water was replaced with shards of ice, allowing the concrete to be transferred at 28°C.
pumping up the burj
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Machine Control
Productivity
W
hile the steady march forward of technology is pervasive across many business and consumer sectors, progress in the construction machinery industry is less even. Some contractors in the Middle East are reluctant to invest in machine control technology, despite the promised benefits. Positioning equipment has been used in the Middle East for a long time, mainly for surveyor tasks, and in marine applications contractors have been using advanced positioning for dredging and other applications. But it has not been widely used on construction machines. However, adoption is growing quickly, says Didier Colin, Trimble’s director of sales and distribution for Europe, Middle East, Africa and APAC regions for their heavy civil construction division. The product
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suite focuses on horizontal construction – rather than vertical – and covers earthmoving applications, roads, logistics, quarry aggregates and mining. He describes the Middle East as being in a “quick development phase”. The increased uptake is partly attributable to Sitech, Trimble’s technology dealers. The company claims to have the first fully dedicated global distribution network for construction technology solutions, and has more than 100 dealers world-wide. The GCC region is covered by Sitech Gulf and Sitech KSA. “The adoption rate in the Middle East is growing very fast. Sitech Gulf and Sitech KSA are doing a great job in terms of customer awareness, demonstrations, customer support and working with customers to help them understand which technology is the best fit for the required application.” It may be no surprise if uptake is measured. Many contractors have a natural resistance to investing in expensive positioning equipment. But Colin says that
ready
the technology can quickly help contractors reduce their business costs, and pays for itself. In order to take advantage of this, contractors should know their business requirements, and any areas where they need to improve. "We're asking customers: What are your needs and requirements in terms of accuracy or productivity? What are the main obstacles or issues you have on your projects and job-sites? What solution can we bring that will solve the problem or avoid it?” The advantages can be grouped under the separate headings of productivity, accuracy and quality, says Colin. Gains in productivity result in better machine usage. In some cases, this can result in entire machines dropping out of the equation – completing a job with two dozers, rather than three. Quality and accuracy means faster completion of projects to the specified standard, avoiding costly re-work, an unplanned factor which in some cases can turn a project from profitable to loss-making.
Trimble’s suite of machine control products can boost accuracy, productivity and quality of work on-site, explains Didier Colin, the firm’s director of sales and distribution for EAME and APAC
“WE ArE SEEInG AlrEADy In SEvErAl CounTrIES THAT 3D TECHnoloGy or MACHInE ConTrol TECHnoloGy IS In THE TEnDEr rEQuIrEMEnTS”
Positioning equipment and on-board weighing systems offered by Trimble can improve job-site productivity, as well as provide detailed information read-outs to site managers about work underway and progress.
For most contractors, grade control on a motor grader is the first piece of machine control equipment they invest in. With work from motor graders requiring accuracy to 1cm, it’s no surprise. With the 2D system, a contractor can achieve 1cm accuracy on the entire graded surface, explains Colin. After the grader, the next machine in the fleet to be equipped is normally the dozer. While graders bring accuracy, dozers bring productivity advantages by achieving a much finer pre-grading result for the grader. operators can achieve dozer finishes that are only 3-4cm off the final required grade, even when using large machines such as a Caterpillar D8 or D9. "Then you've got just a little bit to cut with the motor grader." Compaction is another area where contractors can make major improvements by using positioning systems and machine control, and in order to guarantee high-quality work this technology needs to be brought into the equation, believes Colin.
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Machine Control
AdvAntAges for AggregAtes Trimble is developing a full portfolio for the aggregate market. Currently available are scaling systems for wheel loaders, excavators and conveyer belts, and a report structure so that aggregate operators can have all their data on a single platform, technology which is available through Loadrite, a company that Trimble acquired in 2013. There are also moves to use GPS for surveys and volume calculations, as well as a drilling positioning system for drill rigs. This allows quarry operators to set an efficient drill pattern, with the actual position of the rig supplied to the machine operator, as well as machine guidance on how deep to drill and at which angle. An accurate drill plan will ensure that they neither over-drill nor under-drill, giving the maximum yield on blasts, which saves blasting material, as well as producing smaller rocks rather than large ones, which in turns helps productivity for the crusher by supplying it with the right rocks.
“WE'rE ASKInG CuSToMErS: WHAT ArE your nEEDS AnD rEQuIrEMEnTS In TErMS oF ACCurACy or ProDuCTIvITy?” 40
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Sitech dealers in the GCC region, namely Sitech Gulf (pictured here) and Sitech KSA, are helping improve uptake of Trimble products by contractors.
Trimble has two compaction offerings – a simple pass count, and a more advanced system which measures the number of passes, but also has sensors in the roller drum which measure the stiffness of the soil, providing an accurate measure of compaction. A new system update provides machine-to-machine communication between compactors, so that individual drivers can see the compaction progress of all the machines in real time. Compaction monitoring can ensure full compaction across the entire job-site, and ensure that some
areas aren’t over-compacted while others are undercompacted. For example, drivers of compaction machines tend to do more passes in the centre of a road site, since it requires less concentration than going along the edges. Colin says that even contractors who are sure they’re doing a good job on the compaction may be in for a rude awakening. He relates the example of a blind test they performed with a customer, where the owner, site manager and operator were all sure that they were doing a great job in compaction, with the right number of passes and 100% coverage. For the blind test, the Trimble system was installed, with the control box covered so the operator couldn’t see the real-time progress. once finished, they checked the results. “They were very surprised, seeing that some parts of the road were over-compacted but several parts were not compacted at all, or were under-compacted and did not get good coverage. "In the second phase of the test, where the operator could use the system, they were able to complete the job more quickly and accurately, saving time, fuel and machine hours. That's why, for the quality of a project, compaction is critical.” Productivity and accuracy of excavators can also be greatly boosted with the installation of positioning equipment. Contractors can see big gains on earthworks with contoured shapes, such as ponds or embankment creation, road sites or pre-work when they have a big cut. First use is often on a larger productivity machine, extending down to smaller excavators. With the large amount of infrastructure works in the GCC, such as road construction, airports and rail, contractors can make quick returns. But while the general view may be that technology achieves the best roI on large horizontal projects, there is also value to be found on building sites with small footprints. Having on-board positioning equipment means that all the surveying information – the design of trenches and networks such as water, sewerage, utilities and the plans for parking lots – are accessible to the operator in the cab. This allows them to work autonomously from the surveying staff on-site while working faster, without any overdig. And when it comes to the utilities, they know
their digging will connect perfectly with the design. looking to the future of machine control, Colin says that he expects more excavators to be fitted with machine control, as well as more on-board weighing sensors on machines. He notes that the excavator is by far the most common machine on construction sites, and becoming more versatile with different attachments for different applications. Contractors are focused on improving productivity, reducing fuel costs and machine hours, and raising accuracy. He expects more excavators to be equipped with positioning technology, allowing the operator to track their elevation and ensure they don’t over-dig, and are digging at the right elevation. on-board scales help when loading trucks, ensuring contractors don’t under-load, which means increased costs through extra trips, or overload, which has safety implications and can result in extra costs through fines or accidents. Meanwhile, efforts from oEMs will see more machines ready to be equipped with machine control ex-factory, which reduces installation time. “We expect more and more machines to be 2D-ready coming from the factory. The 3D upgrade will be done directly on-site.” This means that the basic 2D system can be used every day, while contractors will have the option to invest in 3D for a particularly challenging project, with the option of renting the equipment just for the duration of the project.
“THEy WErE vEry SurPrISED, SEEInG THAT SoME PArTS oF THE roAD WErE ovEr-CoMPACTED BuT SEvErAl PArTS WErE noT CoMPACTED AT All” Asked whether there are any problems with standardisation across the different firms offering positioning and machine control technology, Colin notes that equipment from different suppliers can work together on the same site, since all use the same design data format. It’s the same with GPS or GnSS base stations, which are able to transmit data in the same format so every manufacturer can get the data from any base station brand, meaning customers can have a mixed fleet. As machine control moves towards an industry standard, there will be more emphasis on it at the tender stage. Machine control is already specified
in tenders in some countries, especially around compaction. “We see already now in several countries that 3D technology or machine control technology is in the tender requirements. you have to have, for quality or productivity insurance, that kind of technology.” With kit equipped with machine control more productive, contractors also have advantages, such as finishing a job quicker, for example in six weeks rather than two months. For inner-city job-sites, this means less noise and diesel pollution, as well as less disturbance, such as less traffic impact, which is attractive to clients and developers. large international contractors keeping a close eye on their carbon footprint also see environmental benefits from machine control, with lower fuel consumption. In some countries, such as Japan, contractors need to prove their environmental credentials at the tender stage. The bottom line is that the improved environmental outcomes go hand in hand with lower operating costs for contractors. Many international firms have done serious analyses of the return on investment for productivity, for machines with and without positioning technology, says Colin. “They tell us that the productivity increase per machine is between 30 and 50 percent. Some are even telling us that on a dozer they can double the productivity every day. That has a big impact on their carbon footprint, on the environment and on their costs,” he concludes.
Installing machine control on a bulldozer massively improves productivity by allowing high dozing accuracy, within 4cm of the final cut, meaning motor graders can finish the job quicker.
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Al-Qahtani Vehicle & Machinery Co. Tariq Al-Qahtani & Brothers
Product Focus
Raw power EVERYTHING YOU NEED TO KNOW. page 44
caT mH
The smallest machine in caterpillar’s range of new material handlers launches.
page 49
Top 10: summeR pRoof youR fleeT
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concReTing undeRgRound
Ten tips to ensure you get the most out of your fleet during these hot summer months.
cifa’s new coguaro 4 is designed for underground transport of concrete.
page 52 selling online
How the internet is improving sales of used equipment.
page 56 fReesTanding wolff
a wolffkran flat-top tower crane is installed in an impressive 130m freestanding configuration.
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Cat takes C out the trash Why get it? Great safety specs on compact wheeled material handler
Mh3027 SpecificationS: • engine: Cat 7.1 ACERT • operating weight: 28,500kg • Swing torque: 84kN•m • Swing speed: 8.2rpm • Max. reach – horizontal (drop nose stick): 13.6m • Max. travel speed: 20km/h
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aterpillar has launched a new wheeled material handler, the MH3027, with a 28,500kg operating weight and a compact swing radius of 213mm. The machine is the fourth and smallest in the series of new wheeled material handlers introduced to global markets in the greater than 25 metric tonnes size class, and is powered by a Cat ACERT 7.1 engine developing 129kW (173hp). The MH3027 is available in configurations for waste handling, featuring a straight stick, and for scrap handling, featuring a drop nose stick, while a debris-resistant cooling package with a hydraulic, variable speed, autoreversing fan and plug resistant coolers equips it for challenging conditions. A new feature allows customers to select from two hydraulic cab riser options, either the cab-toplatform configuration or the patented “ground level entry and exit”, with a step-in cab that lowers to the front or the side of the machine. The hydraulic cab riser
takes the operator to 5.4m for optimal job-site visibility. Additionally, the cab features joystick steering control, which eliminates the steering wheel and opens the front view for the operator. A standard rear-view camera also expands sight lines with optional side-view camera. The Cat cab avoidance system, using sensors on the front linkage, is standard and helps ensure the work tool does not make contact with the cab. For improved fuel efficiency, the machine is built with a load-sensing hydraulic system that delivers power when needed and reduces fuel burn. Using a closed-centre, one-pump, loadsensing implement hydraulic system with electro-hydraulic pilot control, the hydraulic pump generates only as much oil flow and pressure as required for the application, yielding powerful, rapid response and fuel-saving efficiency. Overall hydraulic power and efficiency is further enhanced by the machine regenerating boomdown oil flow, reducing the volume of oil the pump must produce. High-strength structural steel and advanced welding techniques ensure structural integrity, and enhanced serviceability features, such as auto lube for the upper area of the machine and centralised manual lube for the lower, simplify maintenance.
Genie launches new telehandlers ranGe why Get it? CompaCt and manoeuvrable for tight work-sites Genie has released the first photo of its GTH4018 telehandler, part of the new GTH series of six telehandler models launched at INTERMAT in April. The machines were developed at the Genie factory in Umbertide, Italy, and underwent stringent product-testing, racking up the equivalent of 10 years of job-site operation. Key features include hyrostatic transmissions, improved manoeuvrability and reinforced drivability over rough terrain, as well as higher lifting heights and load lifting. A series of innovations make service and maintenance easier, and greater commonality means more interchangeable components and accessories across the GTHTM telehandler range. The models are divided into three categories adapted to specific applications: compact, high reach and rotating. The GTH-4018 is among the compact range. It features a 4t lift capacity and a maximum 18m lift height, letting operators work more productively when doing construction work up to five or six floors high, or tasks such as masonry in congested and confined spaces.
new BomaG tandems why Get it? tango osCillation ideal for gCC road ConstruCtion Bomag has launched two new tandem rollers for worldwide application, the BW 191 and BW 206. With operating weights of 12-16t, this will extend the choice of machines up to the 16t class. The articulated tandem rollers are especially suited to thicker layers and static compaction of open-pore asphalt. Three exciter systems are available for both models. In addition to the applications where the Double Vibration and Asphalt Manager technologies are used, TanGO Oscillation is used for sensitive and risk-free compaction in difficult areas, such as on joints (hot to cold), on bridges or near buildings. Launched at Bauma in 2013, TanGO is a tangential oscillation which is always directed horizontally, maintaining continuous ground contact due to the constant transfer of gravity. The drum will not bounce in TanGO mode, because the system always works at a tangent to the surface,
Built with a hydrostatic transmission, it has a fast 35km/h travel speed. With both its outside turning radius (3.8m) and its narrowest overall width best in its class, the telehandler is highly manoeuvrable in congested workspaces. The GTHTM-2506 compact, GTHTM-4014 and GTHTM-4018 high reach telehandlers are available now; the remaining models will be launched in September.
which also prevents aggregate crushing. And with the large diameter drum, no bow waves are pushed ahead, even at higher working speeds. It is controlled by just one amplitude, which means that all drivers can master and operate the system easily. On the new tandem rollers, Bomag Economizer is used to measure compaction progress. This measuring system increases efficiency on-site by indicating compaction during operations.
4Gth-4018 specifications • capacity: 4t • lift height: 18m • transmission: hydrostatic • travel speed: 35km/h • outside turning radius: 3.8m
This means unnecessary passes are avoided. The new articulated tandem rollers also feature the roomiest operator cab on the market, giving the driver a clear view of the drum edge and an excellent 360-degree view of the site. The seating unit, with steering wheel, operating armrest and instruments, can be moved across the full width of the cab. The suspended seat, with integrated travel lever, can be swivelled 75° or 15° right or left. The engine and cab are separated, with the engine at the rear of the machine so that the driver is unaffected by noise, heat or exhaust fumes. To keep maintenance simple, there are no lubricating points on these rollers. All other maintenance areas are readily accessible from the ground. Bw 206 specifications • working width: 2,135mm • operating weight: 13,650-15,700kg • engine: Deutz, generating 105kW • max travel speed: 0-12km/h • centrifugal force: 129kN • fuel capacity: 165L • water capacity: 970L
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Crush and sCreen Why get it? Primary mobile jaw crusher has on-board sizing screen Terex Finlay has launched a new high-performance primary mobile jaw crusher, the J-1170AS. Built around the aggressive Terex 1100mm x 700mm (44” x 28”) jaw crusher, a key feature of the new model is the on-board detachable sizing screen. It is powered by a Tier 3 / Stage 3A Caterpillar C9 261kW (350hp) engine. The jaw chamber provides excellent material reduction and product sizing. It is also available with optional hydraulic release, an option when crushing construction and demolition debris. The hydraulic release option has an automatic overload protection system to prevent damage from uncrushable items in the feed material. The hydrostatic transmission of the jaw chamber offers operators reversible operation in the event of a blockage, and provides variable chamber speed to suit given applications. The crusher features hydraulic assist Chamber CSS (Closed Side Setting)
Liebherr LaunChes CompaCt mobiLe Crane Why get it? ideal for constricted areas and low industrial buildings Liebherr has launched a new compact mobile crane, the LTC 1050-3.1, a successor to the LTC 1045-3.1. The partial use of an even stronger fine-grain structural steel and improvements in the
adjustment, and can be changed in minutes. The machine has a heavy-duty variable speed vibrating grizzly feeder (VGF) with integrated prescreen, providing aggressive action to separate fine material. The variable-speed VGF ensures continuous choke feeding of the crushing chamber. Material from the pre-screen can be diverted to a stockpile via the on-board by-pass conveyor, or join the crushed product on the main belt.
The large 9.6m³ hopper has hydraulically folding sides and an hydraulic self-locking mechanism for fast machine setup and teardown times. “The J-1170AS with its onboard sizing screen will enable operators to produce a specced product without the need for a secondary screen,” explains Nigel Irvine, sales and marketing director at Terex Finlay. “The sizing screen can also be detached without the need for additional lifting gear.”
boom telescopes mean that the load capacity has been increased yet again, while the dimensions have stayed almost identical. The new crane can be used with VarioBase and ECOmode. For on-road driving, the cab has been moved to the front of the vehicle using a telescopic arm, giving the crane driver better visibility. A lift cab is available as an option, which can take the crane driver to an eye level of 7.8m, opening up new areas of use. According to Liebherr, the option drastically improves the line of sight to the assembly situation and enhances safety for many crane jobs, and was
purchased by a majority of operators. The new LTC 1050-3.1 has high load capacities over its entire working range, which makes it considerably more powerful than comparable city cranes on the market, says Liebherr. The six-piece 8.2-36m telescopic boom is extended and bolted fully automatically using the telematic controller, some 10,000 of which have now been fitted. The 7.5-13m double folding jib includes a 1.5m assembly jib which can be set to an angle of up to 60 degrees. The assembly jib and an optional second winch make the LTC 1050-3.1 ideal for assembly work in very constricted areas and in low industrial buildings. In the hydraulic system, the electric load-sensing control ensures accurate work operations. Up to four movements can be actuated simultaneously. Depending on the requirements for the lifting task and of the crane driver, the slewing gear can be easily switched from open to hydraulically locked.
LtC 1050-3.1 speCifiCations • max lifting capacity: 50t at 3.0m radius • telescopic boom: 8.2-36m • Lattice jib: 1.5-13m • engine: Daimler-Benz, 6-cylinder, diesel, 260kW • drive/steering: 6x6x6 • travel speed: 85km/h • total counterweight: 6.5t
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underground concrete tranSport Why get it? ideal transit mixer for tunnel projects Designed for use in underground job-sites, whether mining or tunnelling applications, CIFA’s Coguaro 4 is a low-profile concrete mixer truck with a 4m3 nominal drum capacity. Recent winner of a Red Dot design award, the transit mixer was designed for small spaces and challenging working conditions, and is equipped with electronic and video sensors to detect the position of any obstacles. It has four driving and steering wheels and is fitted with a FOPS/ROPS anti-rollover cab. Tested in a high-altitude, high-temperature mine in Peru, the truck is fitted with Comer Industries axles and features a very short steering angle and innovative electro-hydraulic operated transmission, to guarantee maximum manoeuvrability and high tractive effort with low power consumption. Features include multi-disc service brakes in oil bath on both axles and parking brake with negative hydraulic action on both axles, and a 24V electrical system, with two 120Ah batteries, two 55W front lights and two LED rear lights. The washing system is equipped with a high-pressure water pump with 30 L/min – 50 bar, a hydraulic drive, a nozzle and 10m of pipe, as well as a 220L water tank.
hiaB launcheS neW Z-SerieS craneS
coguaro 4 SpecificationS: • Wheelbase: 3.4m • Max speed at full load: 15km/h • Max weight: 21,000kg • drum nominal capacity: 4m³ • drum geometric volume: 4.8m³ • drum rotation speed: 17rpm
Why get it? crane can be parked behind driver cab with tools still attached Hiab, part of Cargotec, has launched the new HIAB Z-HiPro 191 and HIAB Z-PRO 171 cranes, part of the new HIAB Z-series. They feature the ability to be folded into a Z position and parked behind the driver’s cab with the tools still attached. The Z-series cranes have been designed for applications where speed, efficiency and a high number of load cycles are typically required, and customers handling digging, filling, waste handling and other light tool operations are able to get the job done faster. With a clean and intelligently designed boom system – with the hose-routing and chain driven extension system internally mounted – the result is a fast and highly efficient crane. The HPL link between the crane tip and tool protects the hoses, which prevents down time and unnecessary expense. “The compact design of the Z-series allows an easy fit onto modern compact trucks with limited installation space. The cranes are fast and precise, thanks to the features of the new HiPro control systems and the well-tuned hydraulic system producing high-pressure oil flow. They are well prepared for intensive work cycles, particularly when high speed is required, and simultaneously provide high precision,” says Hans Ohlsson, director, medium range cranes at Hiab. “We know our customers well, and they have high demands on their cranes. The new Z-series provides operators with the highest quality and performance possible.”
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Ten Tips
AC If any machines in your fleet don’t have air conditioning, provide portable units to your operators. Portable units cut down on idle time, since operators won’t have to keep engines running to stay cool. Otherwise, check filters on your in-cab AC and ensure it’s functioning correctly. COOlAnT Make sure your machines have the proper coolant, as recommended by the manufacturer. Use strip tests to ensure the coolant hasn’t been adulterated with added liquids. You can also check the coolant lines, seals and hoses, and replace any old or worn parts.
RegUlAR bReAKs Make sure operators have frequent breaks to restore their energy. Over-tired operators who are unable to concentrate work more slowly, and work may be of a lower standard.
Top 10:
Tips for preparing for summer Summer means extra stress on machines and workers
MeChAnIse If you replace manual labour with machine power, your workers will be more efficient. Talk to your dealer about laboursaving options, whether it’s new attachments, machine control or new machines. If you’re thinking about buying a new machine to make your site more efficient, now is the right time.
KeeP On TOP Of MAInTenAnCe Machines are under extra stress during the hot months, and chances of engine failure are higher. If you want your machine to perform with full power when the temperature is at the hottest, make sure every part of the machine is working as well as possible by keeping on top of maintenance schedules.
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Ten Tips
PlAn OveRhAUls If you have older machines that need an overhaul or rebuild, plan to have them out of commission during the summer months, so that they can be back on your site when productivity picks up again.
CheCK TYRes Tyre pressure is more important when the temperature climbs: an over-inflated tyre can burst from the pressure. Rubber also wears faster during the summer, so check that tyres are in good condition, and change them if they’re worn out.
The MIddAY bReAK The UAe’s ‘m
iddAy breAk’ rUle will se 500,000 dUbA e An esTimAT i consTrUcT ed ion workers The hoTTesT down Tools pArT of The dUring dAy. mosT UAe prohibiTed lAboUrers from worki Ar n e g Under direcT 12.30pm And sUnlighT be 3pm UnTil se Tween pTember 15.
PUT UnUsed eqUIPMenT In sTORAge Place equipment or attachments which you don’t plan on using regularly in an appropriate storage area. leaving them in the yard will see dust and sand work their way into equipment, and if it’s an attachment, dust in the hydraulic fluid may contaminate your machines.
ReCOveR Working during summer’s high temperatures is draining, so make sure you recover by drinking plenty of fluids, keeping indoors in a cool dark space and relaxing.
ObeY WORK ResTRICTIOns
Work restrictions during the midday period and any time that the mercury is above a set limit should be adhered to, to provide safe working conditions for your staff. local authorities can levy large fines on companies that break the work bans, and may even use drones to monitor work-sites.
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Online sales
Taking equipme sales online
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Buying things on the internet is part of daily life – but can confidence in e-commerce extend to large pieces of heavy equipment? Jenny Early discusses the march of the modern into the traditional world of construction equipment
T
here’s no denying the importance of online trading. From fashion to food and flights, and everything in between, the internet has become the place to be for consumers and retailers alike. However, despite the explosion of e-commerce over the last decade, online trading platforms have been used only in moderation by industry. Conservative by nature, construction has been notably cautious about embracing the internet. This is now starting to change, and as acceptance increases in the sector, internet-based services are cropping up in a bid to meet the huge untapped demand that the construction equipment industry undoubtedly presents. So how can the original bricks-and-mortar business use e-commerce and social media to enhance trade in the modern era?
AcceptAnce tAkes time Although online giants like eBay, Alibaba and Amazon may now be wildly successful, that wasn’t always the case. In their infancies, even the biggest names in online trading struggled to gain acceptance – and the critical mass of users that is essential for the marketplace concept to work. Financial losses were par for the course for Amazon and eBay when they were starting up in the mid1990s. Today, these sites provide users with an invaluable platform – a virtual marketplace so vast and so varied it is now integral to our day-to-day existence. Now, for example, eBay has over 100 million users and around 300 million items for sale at any one time. Chinese equivalent Alibaba boasts over 600 million users, and it is estimated that in 2016 the site will be worth $150 billion. With figures such as these, it’s easy to see how the internet can provide other industries with a model on which to base successful online trade. Take books. Amazon was created in 1994 as a simple online bookstore. Despite a growing user base and the capacity to sell a variety of products, the site didn’t turn a profit for six years. Online auction site eBay was slightly quicker at creating revenue. After launching in 1995, its initial success came after a phony PR scheme claimed the site was developed to help founder Pierre Omidyar’s fiancée trade Pez candy dispensers – a story that seemed far
more interesting than the more mundane truth of the matter. From these modest beginnings, sites like these have earned users’ trust and become giants of online commerce. Because they are trusted by buyers and sellers, they provide an ideal solution for quick and easy global trading of almost anything. The concept is now being refined and embedded, and it’s only a question of when – not if – the construction equipment industry embraces it.
sAfety in numbers Although industry professionals are uncertain how online trade can be conducted effectively when it comes to large pieces of capital equipment, internet innovations are emerging to meet their new needs. In the ‘old days’ (of a decade ago!) classified advertising was king when buying or selling used equipment, supported by the rolodex and oldfashioned address books. With the development of online platforms for buying, selling and renting, magazines such as Machinery Trader are expanding online. Moving classified ads online has proved beneficial, giving professionals a larger scope for sourcing equipment and getting their machinery seen by a broad geographical audience.
Online sellers by the numbers eBay: • 233 million registered users worldwide • Approximately 100 million listings worldwide at any given time • As of 2008, 716,544 items sold per day • Most expensive item sold on eBay to date: private business jet for $4.9 million amazon: • Over 244 million active users • Home to more than 2 million third-party sellers aliBaBa: • 618 million users • $5.55 billion in revenue • Worth an estimated $150 billion by 2016
“RITCHIe BROS. IS ARguABly THe BeSTkNOWN equIPMeNT AuCTION COMPANy TO HAve eMBRACeD THe POWeR OF THe INTeRNeT... AlMOST 40% OF RITCHIe BROS.’ gROSS AuCTION PROCeeDS COMe FROM ONlINe BuyeRS” July 2015
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the kit seller turned web builder Indoogoo CEO and founder Mark Turner was previously based in the UAE and has a long history selling used cranes in the Middle East and further afield. He shared some of the highlights of his trading career with CMME. The improvement in technology and quality from manufacturers is amazing, from the use of GPS technology to collate Big Data allowing fleet managers so much control over their fleets, to Manitowoc’s incredible VPC technology and Terex’s incredible boom booster kit, the list goes on to continual improvements in safety and durability. The fact is, if we’re honest there aren’t really any bad machines being manufactured these days, are there?
Formerly based in Dubai, Mark Turner, the CEO and founder of Indoogoo. worked as an equipment trader and broker for 20 years in the Middle East.
Construction machinery me: What’s your history selling used equipment in the middle east, and what was the biggest ever sale? mark Turner: I worked as a trader and broker on and off for 20 years in the Middle East, but it was only the last seven years up until October 2013 that I ran my own trading business, HEAVYKIT. The most expensive piece of equipment I ever brokered was a Liebherr LR1750 Crawler crane for 5.5 million euros. It was an incredible deal which took six months to finish and which took me on an incredible adventure to Mongolia, only to find I’d been taken to inspect the wrong crane! It was a fantastic deal though, with both the buyer and seller very happy. The most expensive piece of equipment I ever ‘traded’ was a Manitowoc 4100 S2 Crawler crane, which I bought with a silent partner, refurbished and sold for $1.1 million. The buyer was extremely
happy, as they were basically buying a brandnew crane and a machine they needed that just couldn’t be found at the time in the market. Cmme: What are some of the biggest changes you saw in the used crane industry during that time? mT: The biggest change I saw was the move from friction rigs to hydraulic machines. Following that, the age restrictions on equipment going in to certain job-sites in certain countries, and seeing the market fall out of the bottom of the older machines. The 4100 S2 that I sold in 2007 just before the crash for $1.1 million, which granted was an exceptional deal, would struggle to reach $300,000 today, because of the age restrictions, despite the fact that so many end users still love these machines because they are simple to use and just keep going and going if you look after them.
“THe MOST exPeNSIve PIeCe OF equIPMeNT I eveR ‘TRADeD’ WAS A MANITOWOC 4100 S2 CRAWleR CRANe, WHICH I BOugHT WITH A SIleNT PARTNeR, ReFuRBISHeD AND SOlD FOR $1.1M. THe BuyeR WAS exTReMely HAPPy” 54
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Cmme: Did you see much of a change with entry into the middle east of cranes from China? Did that change market dynamics? mT: Yes, it was a huge impact. The market, seemingly overnight, was flooded with Chinese products, but it was a strange time. A lot of fleet owners were buying these machines purely on price and then retro-fitting them with Western parts. There were loads of stories in the market of breakdowns and accidents. There was also a flood of the so-called ‘cut and paste’ machines, where traders for example were going over to Japan, buying scrap cranes, importing them back to China, rebuilding the cranes with inferior parts and materials, keeping the original serial number plates on them and passing them on as ‘original’ used machines. Not a bad idea when you consider that – for example – an original five-year-old 25-tonne Tadano truck crane was then comfortably selling for about $250,000! So you could see why they were doing it, and to be honest they did it really well. But after a while, there were so many of them in the market place, they became very easy to spot. That being said, you almost felt sorry telling the poor guy that had bought it that it was worth basically nothing and not the $200,000 he was dreaming of. That being all said and done, they were starting off and their overall strategy of flooding the market paid dividends. Now, some of the machines coming out of China are amazing and still offer a great price break with good quality. Cmme: Used equipment sales online are growing, but many buyers still want to get their hands dirty and inspect before they buy. Do you think this is changing – are people comfortable buying kit off photos and the seller’s description? mT: I don’t think that will ever change, and nor should it. In order to fully understand what you’re buying, you really do need to go and inspect the machine yourself, or have a professional inspector do that for you. Getting your hands dirty is all part of the business, and to be honest, for me it was always the fun part! The one thing I missed when I first closed down my trading business was actually going out to inspect a crane on a job-site somewhere. Climbing over it, crawling underneath it. I’m not a mechanic, but over the years there are certain things you know to look for – the basics. That being said, if there is a very clear value proposition in the price and condition of a machine and you’re experienced enough to know that it’s worth taking a punt on, then for sure more people are willing to buy basically off spec from a website, but they’ll be ready for a hit and will most likely have a reserve held back to take care of any repairs that may be needed. The fact that Indoogoo is a social network first means that both buyers and sellers have the opportunity to meet and interact immediately, offering the best of both worlds. Regardless of how good the photos are, getting in the car or on the plane to inspect will always be the best way to go.
of niche social networks that have sprung up. Combine the traditional model, based on machine listings, with the focus of a niche social network and the trading power of Amazon and eBay, and maybe there’s an opportunity for an all-embracing, relevant market for construction equipment.
build it And they will cOme This new approach is what 20-year industry veteran Mark Turner envisioned when he launched Indoogoo, the social network for heavy industry. As founder of the site, Turner has created a mix between linkedIn and Amazon that aims to bring industry professionals together to buy, sell and rent heavy equipment, and lets them talk about it at the same time. Indoogoo gives users the benefits of a listing site with the added bonus of a social network tailored to their specific industry needs. guarding against spam and unhelpful friend requests, all users’ contacts are kept hidden, and unlimited listings ensure that users sell, buy or rent exactly the equipment needed. The addition of yard Talk, a discussion forum, gives users the opportunity to discuss industry news and developments, adding a social element to the traditional trading model. According to Turner, the development of online trading platforms has brought the world of heavy equipment into a new era. By combining the best bits of traditional trade with the spread and scope of social media, the industry now has the tools it needs to move equipment procurement fully into the internet age. “unlike other industries, e-commerce cannot completely change the way heavy equipment is traded,” Turner explains. “Inspecting machines in person, getting your hands dirty and interacting Many equipment auctions incorporate online and off-line elements, so that potential buyers can bid in person or online. New market offerings are providing buyers new ways to connect with machinery sellers.
GOinG, GOinG… Taking internet trading one step further than simple adverts, auction houses were next to harness the power of the web for the construction industry. Physical auctions have incorporated an online bidding process that allows more people to source exactly the right machines for their job. Ritchie Bros. is arguably the best-known equipment auction company to have embraced the power of the internet. Previously hosting only physical auctions, they opened their business up to the web in 2002. By 2008, the company was reporting revenues of $1 billion a quarter. Recent statistics show that almost 40% of Ritchie Bros.’ gross auction proceeds come from online buyers, and 60% of all bidder registrations are online users. Online auction site Iron Planet takes the concept one step further, offering a similar service to that of Ritchie Bros., but without the physical auction aspect. For reassurance that what is being bid on matches the seller’s description – but without the need to visit the machine in person – it provides the added incentive of an inspection undertaken by their staff, offering an impartial report that is available to view prior to auction.
“uNlIke OTHeR INDuSTRIeS, e-COMMeRCe CANNOT COMPleTely CHANge THe WAy HeAvy equIPMeNT IS TRADeD. INSPeCTINg MACHINeS IN PeRSON... IS PART OF THe JOB” Sites such as these demonstrate that although the construction industry has a reputation for being conservative when it comes to taking business online, the success of auction and listing sites shows an underlying willingness to embrace online commerce and trade.
sOciAl mObility However, while the business potential of online trade is increasingly being accepted, the social aspect of the web has yet to be embraced. Websites dedicated to industry news go some way toward communicating with industry professionals, but these news sites and online magazines are, once again, a throwback to traditional media – one-way communication tools that, although useful, do not allow two-way interaction. In short, the world of social media has passed the industry by. But perhaps the industry can learn something from these platforms, and from the plethora
with the equipment is part of the job. What the internet can offer industry professionals, however, is a way to make finding equipment and making new trading contacts easier. Buyer and seller are brought together like never before, and connections and networks created by social media will enhance business prospects and industry relations.” keeping in mind the humble origins of online trading giants like eBay and Amazon, it is clear that the construction equipment industry is not about to change its trading practices overnight. But the emergence of sites such as Indoogoo will help ensure that the construction industry does embrace modern trading techniques and social networking developments. The power of online trading sites has already been proven, and the potential of e-commerce in the construction equipment industry is undoubtedly huge. The only remaining question is the speed of adaptation.
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The Last Word
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CONSTRUCTION AND SUSTAINABILITY AWARDS OF EXCELLENCE NOVEMBER 24, 2015 JUMEIRAH EMIRATES TOWERS, DUBAI
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