Construction Machinery Middle East

ISSUE 8 JUnE 2012

THE NAME sTAys Putzmeister powers on

sTAyING oN TRAcK

Rail projects linking the region

wHERE MAcHINEs Go Euro Auctions on the used market

sPECIAl lOOk AT TRAININg

MAKING THE GRADE

Keeping your team sharp PUBLICATIOn LICEnSED BY IMPZ

Plus: ACROss THE INDusTRY

* NEWs & VIEWs * OffROAD TEsT * bE A bETTER buYER * AND MORE

Contents

IS S U E 8 2 JU N E 2 0 1

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Editorial Why missing out on the Olympics could prove to be a good thing for Qatar as it builds for the World Cup.

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

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NEwS aNalySiS Volvo the suprise package as manufacturers get their annual update on who’s up and who’s down.

page 16 “IT’S ONE BRAND HERE”

Jens Bawidamann, regional director of Putzmeister, discusses the future of the German concrete pump specialist in the region.

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PUtzmEiStEr aftEr thE acqUiSitioN CMME meets the Putzmeister Middle East to discuss life after being sold to Chinese manufacturer Sany.

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GENiE traiNiNG day Genie demonstates the virtue of getting their middle men to take training on its equipment.

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SkillS SharPENiNG CMME looks at the different approaches companies can take to make their team a leaner and fitter operation.

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thE USEd machiNEry rEPort Euro Auctions examines the global trends in used equipment.

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oN thE road to rail How rail building is becoming a critical part of developing the Middle East.

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Raw power

43 NEW RELEASES ROUND-UP What’s hot in new machinery this month? Page 49 SECTOR ANALYSIS: ROLLERS Your guide to the latest in the pressing issue of roller technology. Page 53 BECOME AN AUCTION HOUSE PLAYER Be a better buyer on the often frantic and always exciting auction floor. Page 56 FIND ME A DEALER: OMAN Guide to the dealers in the Gulf’s best kept secret.

Page 58 THE LAST WORD US authotities catch up with an operation who flaunted Iran sanction law via Dubai.

Page

Editor’s Letter

PubliSher Dominic De SouSa GrOuP COO naDeem HooD ManaGinG DireCtOr RicHaRD JuDD eDiToRiaL eDitOr STepHen WHiTe stephen@cpidubai.com +971 4 440 9110 CreatiVe DireCtOr RuTH SHeeHY info@ruthsheehy.com GraPhiC DeSiGner GLenn RoXaS glenn@cpidubai.com

Why not Winning the olympics is a good thing for Qatar

I

JuniOr DeSiGner peRcivaL manaLaYSaY COntributOrS conRaD eGbeRT, Dave ReeDeR, KaRen YounG aDveRTiSinG COMMerCial DireCtOr RaZ iSLam raz@cpidubai.com +971 4 440 9129

t is official, the only fencing you’ll be able to catch in Doha in 2020 will be around a World Cup stadium and not at an Olympics venue... assuming that they have started it by then.

On 23 May, the IOC once again rejected the city’s bid to hold the world’s biggest sporting event, despite being the outstanding candidate in terms of its ability to create the most advanced Games seen. The IOC may have got the reassurances it needed about the consequences of moving it to October but it wasn’t ready to gamble on a city that, with the World Cup taking place two years later, would still not have proved that it can deliver.

buSineSS DeVelOPMent DireCtOr micHaeL STanSFieLD michael@cpidubai.com +971 4 440 9128

Did Qatar ever have a chance of winning the right to host the Olympics? I’m not sure. There are lots of pros of staging it, not least because of the most un-Olympian ideals of placing it in a TV-friendly and therefore lucrative time-zone.

DiGiTaL

But the IOC may have asked questions about the weather (yes, moving it to October would have been cooler and drier at the 90-degrees mark, but the IOC may have still have recalled Beijing’s marathon was maligned as brutal at 88-degrees). They may have also worried about conflicts with one of the busiest times of the sporting calendar, including running up against the World Series in the US. Personally I’m caught between regretting the IOC continuing with Madrid, Istanbul and Tokyo and being relieved.

Having the Olympics then the World Cup would have been a monumentous (by coincidence a word which was first used in 1896, the same year as the first modern Olympics Games) coupling for the region. Those already ecstatic at the boost for the region’s construction industry would have presumably gone into meltdown if the Games were coming too. Imagine the number of contracts, the machines needed... the glory!

However, the realist in me is glad that we can concentrate on the job in hand, draw marker pen over those pencilled in plans for the World Cup and get on with it. Maybe in four years time, when the rail is going down, the stadium foundations laid and a coherent plan for staging the World Cup is known and well-read, the IOC may think differently.

Winning the World Cup may have proven to be a smokescreen to Qatar’s status with Doha exposed as having the financial clout but not yet the muscle needed on the international stage. I worry not though. Doha will get its turn, and even its admirable Olympic committee led by the Emir’s daughter know, that will mostly come in 2022 after the first ball is kicked.

ciRcuLaTion DatabaSe anD CirCulatiOn ManaGer RaJeeSH m rajeesh@cpidubai.com +971 4 440 9147 pRoDucTion OPeratiOnS DireCtOr JameS RaWLinS jamesr@cpidubai.com +971 4 440 9108 PrODuCtiOn ManaGer JameS p THaRian james@cpidubai.com +971 4 440 9146

www.constructionmachineryme.com DiGital SerViCeS ManaGer TRiSTan TRoY maaGma Web DeVelOPerS JeRuS KinG baTion eRiK bRioneS JeFFeRSon De JoYa online@cpidubai.com +971 4 440 9100 pubLiSHeD bY

1013 centre Road, new castle county, Wilmington, Delaware, uSa branch office po box 13700 Dubai, uae Tel: +971 4 440 9100 Fax: +971 4 447 2409 pRinTeD bY atlas printing press L.L.c. © copyright 2012 cpi all rights reserved While the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.

ISSUE 8 JUnE 2012

THE NAME sTAys Putzmeister powers on

sTAyING oN TRAcK

Rail projects linking the region

wHERE MAcHINEs Go Euro Auctions on the used market

sPECIAl lOOk AT TRAININg

MAKING THE GRADE

Stephen White, Editor, CMME

Keeping your team sharp PUBLICATIOn LICEnSED BY IMPZ

Plus: ACROss THE INDusTRY

* NEWs & VIEWs * OffROAD TEsT * bE A bETTER buYER * AND MORE

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

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CONSTRUCTION

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News Round-Up

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

BrAZIL BUILDS Construction of the new Maracana Stadium continues with two years to go until the FIFA World Cup. The major reconstruction project that involves an expansion of the stadium’s roof, which will cover all seats inside the stadium, unlike the current design, where protection is given from the seats of the bleachers above the gate access of each sector.

Euro Auctions: light EquipmEnt dominAtEs mE sAlEs

The pick-up in small project demand is powering sales of used lighter machines in the Middle East, according to Euro Auctions’ Q1 report.

Jonnie Keys, general manager of Euro Auctions, has reviewed the world market of new and used construction equipment and machinery and says that the auction house is seeing a trend of heavy equipment being moved out of the region to service the Australian market.

“At the end of 2011 analysts predicted that activity in the UAE would flatten during 2012 and contractors would

experience a tough 12 months,” writes Keys.

“With cost of labour, material and plant remaining constant in 2012 and with little new infrastructure projects to tender for until 2013, activity has been slow.”

“The result is approximately $719bn of construction works put on the backburner or cancelled altogether, with over 50% of these projects being in the UAE,” said Keys. “Heavy equipment destined for infrastructure and cancelled canal projects (777s, 789s and 797s) is now moving out of the Middle East to where it’s needed most.”

Sany and CCCC to develop Doha Port Landmark deal for Sany as it ties up port construction contract with China Communications Co Ltd in Qatar.

C

hina Communications Construction Co Ltd (CCCC) and SANY Group have signed a strategic cooperation agreement to develop the Doha Port and the 2022 World Cup soccer stadium in Qatar.

SANY Heavy Industry Chairman Liang Wengen, President Xiang Wenbo and CEO Yi Xiaogang were joined at the ceremony by CCCC Chairman and Deputy Party Committee Secretary Zhou Jichang and Supervisory Board Chairman and Deputy Party Committee Secretary Liu Xiangdong.

As one of the world’s top 500 enterprises, CCCC develops real estate and builds ports, wharfs, waterways, highways, bridges, railways, tunnels, and municipal projects. The company

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conducts business in more than 100 countries and is listed on the Hong Kong stock exchange on December 15th, 2006.

The Qatar construction partnership represents a milestone in cooperation between the Chinese and Qatar governments and includes the construction of the Doha Port and the 2022 World Cup stadium facilities. Eight kilometers of frontage will be built at the Doha Port, requiring the excavation of roughly 65 million cubic meters of earth and rock. This is more than 70% of the volume of China’s Three Gorges Project.

As one of China’s top construction machinery manufacturer, SANY Group will provide a variety of products, including concrete pump trucks, excavators and crawler cranes to CCCC. Currently, more

than 60 pieces of SANY equipment are working at the Doha Port project, and other products, such as concrete batching plants, will assist in the construction of the Doha 2022 World Cup stadium.

The partnership marks the first time SANY Heavy Industry has entered a strategic construction alliance since completing the acquisition of Putzmeister on April 16th, 2012.

Company intelligenCe Contractor Thiess services Middle easT (TsMe) says that recycling waste construction and building materials for the etihad Rail project will save 5 million kilometres of truck journeys. etihad Rail is a $11 billion project that will create a rail network across the Uae. Work has already begun on the first phase, a 266km stretch of rail in the Western Region that will be used to ship granular sulphur from the Shah and Habshan fields to Ruwais. tSme said that it is working with the abu Dhabi Centre for Waste management (CWm)t to supply at least 750,000 tonnes of aggregates to contractor al jaber group for the first phase. it said that using the waste material will reduce save money and ease environmental costs.

His Highness Sheikh Hamdan Bin Zayed al nahyan, ruler’s representative in the Western Region has hailed the awarding of contracts to al-Fara’a and aManah for the construction of the ghayathi and Sila hospitals in the Uae’s Western Region as an indication of the country’s dedication to bringing healthcare services to every citizen and resident in the emirate. the abu Dhabi Health Services (SeHa) said the two companies were awarded the contracts based on the strength of their presentations and the technical and financial commitments. the Qatar news agency has reported that Mannai has informed Qatar investment and projects Development Company (QipCo) that it would not be able to complete the purchase of black caT engineering and consTrucTion coMpany within the agreed timetable. mannai is one of the largest trading companies in Qatar and its portfolio includes a major machinery arm. nass coMMercial , Case’s distributor in Bahrain says that it has acquired is first 695St backhoe loader as it prepares for a pick up in construction in the country.

tenDeR UpDateS

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oman’s Ministry of Transportation and communication has released a tender for road works on the baTinah expressway. eight companies have already registered their interest in the project, but there is still time to apply. interested companies can apply at www. tenderboard.gov.om. applications must be recieved by 6/8/2012.

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ashghal, Qatar’s public works authority, has issued a raft of tenders for the reconsTrucTion, rehabiliTaTion and MainTenance oF roads reconstruction, rehabilitation and maintenance of roads throughout the city. deadlines for tenders begin at the end of May running through to june. details can be found on the ashghal website.

Saudi company building caterpillar’S new indoneSia plant Dammam-based Zamil Steel’s Vietnam operation is to help build Caterpillar’s new large hauler truck and bulldozer plant in Indonesia.

Zamil Steel Buildings Vietnam has been awarded a $16 million contract with Caterpillar Indonesia to fabricate and supply preengineered buildings for the new facility which will be based on the island of Batam.

The company revealed it won the contract because of its fabrication capacity and will start the shipment of

iC’S 2012 yelloW taBle top 10 (rankings are based on revenues from construction equipment sales in u.S. dollars in 2011.)

1 caterpillar 2 Komatsu 3 Volvo construction equipment 4 Hitachi construction machinery 5 liebherr 6 Sany 7 Zoomlion 8 terex 9 doosan infracore 10 John deere

the buildings by the end of this quarter with completion expected in Q3.

Zamil Steel will begin the design, manufacture and supply of Pre-engineered Steel Buildings for the customer immediately for the $150 million facility. Once completed the factory will ship a wide range of mining truck chassis and bodies throughout the Asia Pacific region. ‘’We are honoured to secure this agreement as the supplier of steel building materials for the Caterpillar Batam

facility, despite the strong competition,” said Nawaf M. Al Zamil, VP of Zamil Steel’s Building Products Group. “Our company’s capability to meet the FM Global standards of this project, along with our capacity for fabrication of materials suitable for heavy-duty crane construction, contributed to the selection process,’’ He added: ‘’As always, we will do everything necessary to guarantee client satisfaction throughout the project from design, fabrication and supply until final erection.”

VolVo into top three, as terex, sany and Zoomlion surge up top 10 manufacturer list international construction has released its yellow table 2012 list of the world’s biggest machinery manufacturers with Volvo, terex, Sany and Zoomlion climbing up the top ten.

Volvo overtook Hitachi as the world’s third biggest selling manufacturer in 2011 according to international construction (ic) magazine’s annual report. according to ic, the difference between the two companies was just 0.5%. meanwhile terex surged into eighth place having not made the top ten last year. putzmeister’s new owner Sany continued its own rise in the rankings replacing doosan as the world’s sixth biggest machinery maker. Fellow chinese giant and recent buyer of a majority stake in Schwing-Setter, Xcmg, fell out of the

top ten, but Zoomlion has risen from 9th to 7th on the list. according to ic, uS-headquartered companies accounted for 31.2% of total revenues of the top 50 companies (up from 29.5% in 2011). Japan remains the second biggest seller with a slight fall from 23.5% to 23.2% last year. china continued to improve its position, taking a 16.9% share (up from 15% last year) and is now estimated to be worth $30.6 billion. it is the sixth consecutive year that chinese manufacturing as has seen increases. when the first list was published in 2003, china had a share of just 1.3% and recorded $841 million in sales. a year later, in 2004, Sany was ranked 43rd.

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News Round-Up TOp Of The LINe

The new top of the range JCB 457 WLS wheeled loader that replaces the 456 model has more power, torque and reduced fuel consumption.

FAMCO OMAN LAUNCH Multi-brand dealer FAMCO has continued its Middle East expansion with the launch of a new branch in the Sultanate of Oman.

The branch was inaugurated at a grand ceremony in the Grand Hyatt Hotel, Muscat attended by leading industry executives from Oman’s industrial and logistics sectors.

UAE-widE AUction hoUsE JLL to bE biggEst within fivE yEArs Al Nowais Group and Jones Lang LaSalle are launching JLL, a new entrant in the UAE auction arena.

Al Nowais which is one of the largest family businesses in the country has acquired the first Federal UAE license to carry out auctions in Abu Dhabi and across the region.

Jones Lang LaSalle is among the world’s leading real estate investment and advisory firms and the two companies have formed a 50/50 joint-venture called JLL Auctions.

The operation is headed by Patrick Ditcham, a 25-year international valuation and auctioneering veteran and will initially include construction, oil & gas and the automotive sectors.

The JV has announced that it plans to extend the coverage to include property, manufacturing, military and defence, petrochemicals and the marine sector.

Both partners are confident that JLL Auctions will be the largest auction house in the region within five years and will make Abu Dhabi the centre for industrial plant and machinery disposal services in the Gulf.

“We identified the opportunity to create and develop a regionally based auctions business several years ago,” said Abdulla J Al Nowais, CEO of Al Nowais Group. “Market conditions are continually improving and the time is right to launch this new business. Jones Lang LaSalle has the international experience and regional

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reach to be able to do this with us.

“However we are not just looking to create a new auction facility in an existing market; this is about challenging the whole sales process in the industrial sector. Auctions offer a real alternative to more traditional methods of acquiring new plant such as buying it in new, or through official tender processes for stock being cleared and sold off by the Government or other large entities.

These options can be expensive and time consuming.”

“This is not about fine art. This is about offering the region’s industrial sector access to the more cost effective auctions process, enabling companies to buy and sell plant and machinery on the open market,” remarked Patrick Ditcham, director of auctions and machinery valuations for Jones Lang LaSalle MENA. “JLL Auctions will provide a more comprehensive service offering a more direct, transparent and flexible option for both vendors and purchasers, giving them better returns than they currently get. We will create considerable efficiencies and cost savings for businesses that buy and sell plant as part of a broad variety of industrial processes.”

Most of the auction houses in the UAE are located on fixed site but the license obtained by Al Nowais Group allows it to carry out auctions in Abu Dhabi and across the country.

The UAE-based Al-Futtaim Group’s distributor of commercial vehicles, construction and industrial equipment, inaugurated the new branch at a ceremony in Muscat attended by leading industry executives from Oman’s industrial and logistics sectors.

SUV REALLY? Renault’s ‘new’ ‘SUV’, a redux of the Romanian Dacia Duster, is cheap but severely underpowered.

VIP VISIT His Excellency Mohamed Meer Abdalla Al Raeesi, Ambassador of UAE in France was hosted by Gaby Rhayem, regional director for DICE for the Middle East region, as part of a delegation that was lending its support for the upcoming Intermat Middle East, which will take place in Abu Dhabi from 8-10 October, 2012.

Managing director Paul Floyd said the new facility will enable FAMCO to set a new benchmark in service in a market driven by infrastructure investment.

“We take pride in working closely with fleet operators, providing high levels of customer service and expert advice,” commented Floyd. “Now we can bring these qualities to the Omani market where we believe we have much to offer.

Oman’s vision to invest in its infrastructure has heightened construction activity in the country and our aim is to set a new benchmark here and be part of this exciting vision.

FAMCO, which added Oman to its regional footprint in 2011, will distribute leading brands such as Linde material handling equipment, Merlo telescopic handlers, Ingersoll-Rand industrial air compressors, MASE marine generators, Hart & Nassau industrial doors, Stertil docking systems, and Bott workshop. FAMCO has grown from inside UAE to become a force to be reckon with across the GCC region.

Facing a tough opponent?

Bring it on.

Perfectly suited to heavy duty work at the face or in rehandling applications, the L250G is the industry’s first wheel loader in the 35 tonne weight class. It combines the optimal mix of lifting strength, breakout force and traction, resulting in high bucket penetration. As well as exceptional productivity and operator comfort, the L250G’s powerful Z-Bar linkage offers high lift capacity and rapid hydraulic reaction, resulting in faster work cycles.

Volvo’s L250G: in a class of its own. www.volvoce.com

A.A. Bin Hindi B.S.C (c) BAHRAIN Tel: + 973 17 703078 E-mail: ciesales@binhindi.com Abdelmassih Trading Company – Amtrac LEBANON Tel: +961 1 88 76 60 / 61 E-mail: michel@amtrac-lb.com

Al-Zabin International Group Co. For Heavy Equipment KUWAIT Tel: +965 433 4721/6017 E-mail: alzabin@alzabinkuwait.com ASC Turk Makine Ltd. TURKEY Tel: +90216 581 80 00 E-mail: info@ascturk.com

Al-Futtaim Auto & Machinery Co (FAMCO) UAE Tel: +971 2 502 9100 E-mail: famco@alfuttaim.ae

Arabian Agencies Company WLL QATAR Tel: +974 44 50 0295 E-mail: araco@araco.com.qa

Al Rehab Equipment and Machinery Co. Ltd. SAUDI ARABIA Tel: +966 2 680 4444 E-mail: info@alrehab-ksa.com

Copenhagen Group A/S/ IM Jensen A/S AFGHANISTAN Tel: +45 3363 9424 E-mail: tiwa@imjensen.com

volvo construction equipment

Elaghil Trading Co. YEMEN Tel: +967 1 207 595 E-mail: elaghil@y.net.ye General Engineering Services Est (GENSERV) OMAN Tel: +968 244 90755 E-mail: sales@genserv-oman.com Nassib Saad Est. Trading & Import SYRIA Tel: +963 11 222 5432 E-mail: saadmt@scs-net.org Parsian Pishro Sanat IRAN Tel: +9821 88 77 44 99 E-mail: info@parsianind.com

Sardar Automobile and Machinery Trading Co. IRAQ Tel: +964 66 256 9888 E-mail: ihsan@sardarmachinery.com VPL Limited PAKISTAN Tel: +92 42 111 875 875 E-mail: uzair.shahid@panasiangroup.com

News Round-Up

ME opErators want to sprEad costs The man responsible for overseeing Cat Financial’s operation in the Middle East says that its customers are looking more and more at their options when it comes to spreading costs over the lifespan of a machine.

“Cat Financial is focused on supporting Caterpillar customers through good times and bad,” says Richard Kinsey, Cat Financial Sales and Marketing Manager for the Middle East “Cat Financial underwrites asset-backed loans and provides alternative funding sources for customers versus existing banks or lenders,” Kinsey explains.

“And concentrating upon construction customers, we understand the markets in which they operate.”

Cat Financial is perhaps the best established OEM-backed financing service in the established in 2007, Caterpillar Financial Serviced (Dubai) Limited’s purpose is to develop financing solutions to support the sale of Cat equipment in the Middle East and Africa. Cat Financial Dubai is a subsidiary of Caterpillar Financial Services Corporation, itself a wholly owned subsidiary of Caterpillar Inc. Today Cat Financial has a global managed portfolio of $27 billion and covers over 40 countries worldwide.

The Dubai operation continues to evolve, in a marketplace that has changed considerably in the past five years, but Kinsey says that it has experienced growth and continued to develop throughout the period.

“The business has grown in that time,” he says. “We are here to develop financial service solutions for our customers and dealers. As we have developed our business model, we work with large fleet deals down to one or two machine transactions, and support SME’s in a market that has limited appetite for this sector.

Our role is to help these smaller customers grow and succeed and become the large fleet operators of the future.”

He adds: “We’re here to support the sale of Cat construction equipment, which is not a bank’s prime reason to be. Our customers are increasingly looking at options to spread their costs in order to optimise their equipment lifecycle cost, which is where Cat Financial can assist.”

Piech chess gaMe Nears cliMax as he joiNs scaNia board The appointment of Volkswagen’s chairman Ferdinand Piech to the board of Scania has increased the likelihood that the German giant will soon be able to bring together a merger with its two truck concerns.

VW raised its stake in fellow German manufacturer MAN SE to 73% in April and with Piech now replacing Gunnar Larsson on Scania’s executive committee its long-standing ambitions appear to be close to being realised.

The 75-year old Piech was voted onto the board of Scania at the Swedish company’s shareholder AGM held earlier this week. The appointment now means that VW

New Me aNd africa MaN for doosaN CraNE CraSH the Iraqi government is struggling to afford cranes to remove concrete blast walls.

Doosan Infracore Construction Equipment has appointed a new head for its European, Middle Eastern and African business.

Current VP EMEA region Martin Knoetgen will take on the role of president of the EMEA region on 1 June. Appointed by CEO Tony Helsham, he will replace Scott Nelson who been overseeing the region since June 2010. Helsham said that Nelson has decided to leave the company for personal reasons.

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can begin manoeuvring the two companies together.

It appears likely that should VW reach a 75% holding in MAN then it would be free to pursue a domination agreement with the company, which would effectively give it direct control over the company’s direction.

“All options are open to us when it comes to the further structuring of an integrated commercial-vehicles group,” VW Chief Executive Officer Martin Winterkorn told shareholders.

“What matters most is close, mutual collaboration between the different brands, and this is something we have significantly stepped up in recent weeks and months.”

“I would like to thank Scott for his strong leadership and valued contributions to our company,” commented Helsham. “Delivering on our promise to our dealers and customers to provide quality, valueadded products and services that support their business success is at the core of what we do.

In finding a successor, it was important to appoint someone who embodies this promise in the same way as Scott has done as EMEA President.”

He added. “I am therefore pleased to announce that Martin Knoetgen is assuming the position of President of Doosan Infracore Construction Equipment - EMEA, reporting to me. Scott will remain on board as an advisor to assist with the transition

through June 30. Martin Knoetgen has served as VP for the past two years.

“With more than 15 years of general management and operations experience, Martin has a balanced leadership approach and a demonstrated ability to deliver on short-term goals while developing strategies and executing against the long-range plan.”

Prior to joining Doosan Infracore Construction Equipment, Martin Knoetgen served as the President and General Manager at Dalphi Metal, a subsidiary of TRW Automotive Holdings Corporation. He also spent more than three years as the Director of Operations in Europe and four years as Plant Manager at TRW.

Independent CummIns Qatar In for long haul Cummins says that it is in for the long haul in Qatar as it continues to develop its JV with Jaidah heavy equipment. the us-based engine and generator manufacturer Cummins Inc and local equipment player Jaidah launched a JV, Cummins Qatar, recently to service the growing demand in Qatar.

Jaidah had represented Cummins for 20 years in the country, but the two companies decided to make the change from a traditional dealer/ distributor model to a fully functioning solution provider, officially opening for business in January. the company will be in full control of the business transactions which was previously looked upon by Jaidah group. With thousands of installed engines already in Qatar, Cummins Qatar is now working independently and will render full range of Cummins’ products and services.

“It is a 51/49 percent venture with Jaidah having the 51 percent. Cummins will use its own management resources to manage the joint venture,” rachid ouenniche Cummins managing director of distribution for the middle east said recently. “We call it the Cummins operating system. so we will use Cummins tools and Cummins experience to manage the business.” tim Worme, general manager of Cummins Qatar, described the new company to Cmme at project Qatar as a natural fit for both Cummins and Jaidah.

While still in a “growth phase”, the company plans to expand its operation, opening a new facility that will become its sales and service hub.

“We’re not just planning for the World Cup, we’re planning for the next 25 years,” he told Cmme.

“We’re building on the local knowledge we have and strong, our existing base.” the JV is concentrating much of its effort into power generation solutions. While Qatar is not exactly underserved by power solutions, Worme says all the system components are designed to work together as a whole. “that’s the power of one. We’re different from many of the other companies here,” he affirmed.

While the JV business set up is a first for Cummins in the middle east, Worme said Cummins has built up experience globally with similar arrangements with local partners and understands, “leveraging local capability. this is a big opportunity and we have high expectations.”

SARILAR orders biggest ever crane for Turkey

SARILAR SIGNS Hanifi Gürbüz, founder and Chairman, SARILAR (left) and Frank Bardonaro, Vice President & Managing Director Global Sales

AGGREko: QATAR MARkET wILL “TAkE TIME” A senior representative for Aggreko’s operation in Qatar has warned that the Qatar market will take time to reach its muchanticipated boom.

Speaking at the Project Qatar event, Russel Moxham, area general manager – Central Gulf Aggreko Middle East, told CMME that the company is preparing for a successful 2013.

“Is the market dead?

No, it will just take

time,” said Moxham, area general manager – Central Gulf Aggreko Middle East. “It’s a massive opportunity, the boom is coming to Qatar. It’s just nobody knows when.”

Aggreko provides power and cooling solutions in the country, including supplying generators and cooling for Project Qatar, and believes it will find demand for its

product in wide range of applications. The company skipped Another company that skipped last year’s event but joined the Heavy Max expo held alongside the event to help maintain its profile in the country.

Moxham added: “I actually think the exciting part is now but I think you will see things really move towards Q3, maybe Q4 (this year) as we move towards 2013.”

Terex Cranes’ distributor in Turkey, Das Otomotiv is to supply SARILAR Co. LLC with the heaviest lifting crane in Turkey.

Terex has revealed that the contract to purchase a 1,600-tonne Terex CC 8800-1 lattice boom crawler crane was officially signed at SARILAR’s headquarters in March.

SARILAR is becoming an increasingly prominent player in major infrastructure projects in the global arena, most notably in the Middle East, and this new contract follows the purchase of 38 other heavy-lifting Terex crawler cranes in the past decade.

Featuring a 108-meter main boom and SWSL 108-meter luffing fly jib configuration, the Terex CC 8800-1 will be manufactured at the company’s facility in Zweibrücken, Germany.

Delivery is planned for the second half of this year.

“Our customer is not only one of the world’s leading rental companies, but also one of the most respected,” said Frank Bardonaro, managing director global sales, Terex Cranes. “Based on the triangle formed by SARILAR, Terex Cranes and our local market distributor DAS OTOMOTIV, we are going to help SARILAR expand their global footprint so they can achieve their goal to compete in a higher league.”

SARILAR is planning to use the crane for the Izmit Bay bridge project, the construction of a power station, and plans for a third bridge linking a 44-km stretch between Ankara and Istanbul over the Bosporus – all great project opportunities to put the CC8800-1’s unmatched lifting abilities to the test.

Currently ranked in 12th place by International Cranes and Specialized Transport (IC Top 50 list), SARILAR already stands among the largest crane service providers in the world.

According to Hanifi Gürbüz, founder and Chairman of SARILAR the new crane will open “new doors for our company.”

He added: “Our primary objective of putting our company’s signature on today’s most impressive infrastructure projects is now within our reach.”

Furthermore, SARILAR also sees its new CC8800-1 as a significant contributor in the development of the Turkish economy.

“Our company aims at using 100 per cent domestic funds to support projects in Turkey and abroad.

Machines of this quality are few and far between. Our new crane’s cuttingedge abilities will be a strong asset in securing our country’s economic success and keeping more capital within our country,” explained Gürbüz.

June 2012

CONSTRUCTION

MIDDLE EAST

11 11

News Round-Up

Q-Fab celebrates Iron Planet launch Qatar-based distributor and trading group Q-Fab says it has enjoyed a successful launch to its partnership with online auction house Iron Planet.

Samar Pal Bais, general manager at Q-Fab which features Wirtgen, New Holland/Kobelco, as well as Iron Planet among its partners, explained that the company has been pleased with the response from buyers.

“In two or three months we have helped to sell 32 cranes, mainly to Africa. There is a lot of used machinery in Qatar,” Pal Bais told CMME. Q-Fab featured at the forefront of the Heavy Max show held alongside Project Qatar and explained to CMME that the “young company” has set itself the goal of playing a prominent role in Qatar’s development.

“You have to understand that if you’re not present, you’re not present in the market,” he explained. “Qatar is geographically a small market but there are a lot of opportunities here.”

LiuGoNG LooKS ForwArD To LuCrATivE KSA DEALS Chinese manufacturer LiuGong says that it received a lot of enquiries and business proposals during its participation at the recent Construction Machinery Show.

Described as the most important section for machinery traders and importers in Saudi newspaper, Arab News, Li Yi told the publication that visitors to its stand were interested in its pneumatic tire forklifts, excavators and loaders.

“The construction sector in the Kingdom is booming and we look forward to many lucrative business deals,” commented Yi. LiuGong launched its own Middle East FZE office in Jebel Ali, Dubai, last year and is beginning to feel the benefit of running the facility in the reigon.

“For more than 50 years, LiuGong Machinery Corporation has been a leader in China’s construction

equipment manufacturing industry,” said Yi. “From building the country’s first modern wheel loader, LiuGong has evolved to become one of the fastest growing, global, full-line construction equipment companies in the world. LiuGong delivers opportunity to its employees, quality products and services to its customers, financial success to its investors, and community support in the regions it serves.”

BAGhDAD SEEKS powEr AND CoNSTruCTioN iNvESTMENT

Iraq’s National Investment Commission has issued a request for investors and technical help to construct a residential complex of eight storey buildings in the Karrada district of Baghdad.

Services for the development include a requirement for power generators, roads and the construction of 2,400 housing units.

12 12

CONSTRUCTION CONSTRUCTION MIDDLE EAST MIDDLE EAST

September June 2012 2011

The National Investment Commission said it is: “Pleased to announce the investment opportunity to construct a complete residential complex for the employees of the Shiite Endowments Directorate in Baghdad – Karrada district within a total area of (60) acres in accordance with the Investment law No. 13 of 2006 as amended and according to the requirements.”

The project includes the establishment of a residential complex of vertical eight-storey buildings each. The number of units to be implemented is (2400) housing units with

areas of (125 m ², 175 m ², 225 m ²).

It also requires the construction of schools for the three phases with nurseries – medical centre – a shopping and marketing centre – a cultural centre – services (water, sewage, power stations and generators). As well as a playground, passengers roads, parking spaces and green areas in accordance with the “in forced relevant standards of the Municipality of Baghdad and the Ministry of Housing and Construction”.

“The system of funding for this project will

be supported through a bank that should be accredited by the Central Bank of Iraq to be a mediator between the beneficiary and the investor while the cost of each apartment and the payment mechanism is to be negotiated with the investing company and the mediator bank.”

Investors who wish to apply for this investment opportunity can provide their technical, economic and financing plans and fill in the investment application form available on the website of the National Investment Commission.

Space freight: The commercial vehicles sector is officially now out of this world, with the historic first docking of the SpaceX Dragon to the international Space Station.

the new 56-5 42-5 36-4 Ple

s at the In ase visit u

termat Abu

D h a bi

The next generation has arrived!

High performance concrete pumps made better!

Fifty years of experience in the development of concrete pumps means ongoing innovations. With the truck-mounted concrete pumps from the new generation, we have gone one step further: We took the basic idea and then completely rethought and redesigned it. Countless suggestions from customers, operators, suppliers and Putzmeister employees were put into the new products. From this emerged an innovation that is setting new standards in the world.

Putzmeister Concrete Pumps GmbH · 72631 Aichtal · Germany · www.putzmeister.com Putzmeister Middle East Jumeirah Lakes Towers (JLT) · Swiss Tower · Office 1403 · P.O. Box 262657 · Dubai, U.A.E. · Tel: +971 (0) 4 454 27 83 · Fax: +971 (0) 4 454 27 82 For inquiries: (General) Jens Bawidamann, Regional Director E-Mail: BawidamannJ@pmw.de Mobile: +971 (0) 506009972

(Bahrain, Kuwait, Saudi Arabia) Bastian Dreher, Sales & Project Manager E-Mail: DreherB@pmw.de Mobile: +971 (0) 501009985

(Oman, Qatar, U.A.E.) Derong Li, Sales & Project Manager E-Mail: LiD@pmw.de Mobile: +971 (0) 504818865

News Analysis

The 182-billion dollar industry

Volvo the surprise package as KHL publishes its annual list of the top 50 construction manufacturers.

I

nternational Construction has released its Yellow Table 2012 list of the world’s biggest machinery manufacturers with Volvo, Terex, Sany and Zoomlion climbing up the top ten.

The value of sales for the construction machinery industry bounced back in 2011.

According to the KHL Group’s annual Yellow Table survey of the top 50 manufacturers sales topped $182 billion last year, taking revenue beyond the $168 million that was raked in the last “good year” of 2008, before the downturn came along and ruined everything.

Rankings were based on revenues from construction equipment sales in US dollars in 2011. Across the top 50, US-headquartered companies accounted for 31.2% of total revenues, up from 29.5% the previous year. This was followed

by Japan, with a 23.2% share - down from 23.5% the previous year; and China, which had a 16.9% share - up from 15.0% in the 2011 edition, which was based on 2010 revenues.

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The fact that a list like KHL’s exists at all is a minor miracle; given the reluctance of many manufacturers to openly disclose their performance, the difficulty of making it truly globally representative, the man-hours necessary, the risk of getting it wrong, etc. To complicate things for the team at KHL, it also attempts to separate sectors that may not be relevant to the construction industry that may be important to the manufacturers themselves such as mining.

In this aspect, this is the best list yet with some companies shifted along the list like aggregate in a screening machine. In 2011 Atlas Copco, was inside the top dozen manufacturers.

In this year’s list it is ranked at 22, despite having one of its best-ever years.

Since it first surfaced nine years ago it has become the industry’s equivalent of player scores for sports. No-one wants to know how well/ badly they’ve done, but they DO want to see how their competition fared. It may not tell the whole story – it’s a grey area as to whether it shows actual machinery sales to end-users or just sales to dealers, for instance – but as a ‘at-a-glance’ method of ranking the industry it’s hard to beat.

Standing at the top of the pile, once again are Caterpillar and Komatsu. The US giant is by some way the dominant number one in the global market , taking revenues of $35 billion versus Komatsu’s $21 billion. If it was a country, it would have a greater GDP than Ethiopia, the country with the 88th largest GDP in the world.

Moving down the list, the top 10 includes familiar names such as Volvo Construction

The iC’s 2012 Yellow Table

Top 50

RANK

COMPANY

2011

SALES (USbn)

SHARE OF TOTAL

1

Caterpillar

1

35.296

19.4%

2

Komatsu

2

21.750

12.0%

3

Volvo CE

4

10.013

5.5%

4

Hitachi CM

3

9.997

5.5%

5

Liebherr

5

7.930

4.4%

6

Sany

7

7.861

4.3%

7

Zoomlion

8

7.171

3.9%

8

Terex

10

6.505

3.6%

9

Doosan ICE

6

5.830

3.2%

10

John Deere

12

5.372

3.0%

11

XCMG

9

5.259

2.9%

12

JCB

13

4.300

2.4%

13

Kobelco

11

3.927

2.2%

14

CNH

15

3.876

2.1%

15

Metso Mining and Construction

14

3.839

2.1%

16

Hyundai Heavy Industries

16

3.560

2.0%

17

Liugong

18

2.768

1.5%

18

Wirtgen Group

19

2.448

1.3%

19

Shantui

20

2.433

1.3%

20

Manitowoc

21

2.165

1.2%

21

Oshkosh Access Equipment (JLG)

17

2.052

1.1%

22

Atlas Copco Construction

22

1.990

1.1%

23

Lonking

23

1.969

1.1%

24

Sumitomo Heavy Industries

24

1.922

1.1%

25

XGMA

25

1.857

1.0%

26

Manitou

27

1.573

0.9%

27

Sandvik Construction

26

1.425

0.8%

28

Wacker Neuson

29

1.379

0.8%

29

Tadano

28

1.320

0.7%

30

Palfinger

31

1.176

0.6%

31

Kubota

34

1.147

0.6%

32

Fayat Group

32

1.147

0.6%

33

Ammann

30

1081

0.6%

34

Astec Industries

35

.956

0.5%

35

Bauer

36

.927

0.5%

36

Putzmeister

33

.750

0.4%

37

Bell Equipment

41

.698

0.4%

38

Kato Works

37

.674

0.4%

39

Boart Longyear

47

.572

0.3%

40

Telcon

48

.560

0.3%

41

Furukawa

38

.554

0.3%

42

Merlo

43

.533

0.3%

43

Takeuchi

42

.498

0.3%

44

Sunward

44

.478

0.3%

45

Aichi

40

.447

0.2%

46

Chenggong

46

.447

0.2%

47

Haulotte Group

49

.427

0.2%

48

Changlin

50

.331

0.2%

49

Skyjack

NE

.330

0.2%

50

BEML

45

.320

0.2%

Equipment, Hitachi Construction Machinery, Liebherr, Sany, Zoomlion, Terex, Doosan Infracore and John Deere.

Volvo overtook Hitachi as the world’s third biggest selling manufacturer in 2011 according to the magazine’s annual report.

The difference between Hitachi and Volvo who nipped ahead to third is so slight at $16 million that it might be fairer to settle it by an arm wrestle next year.

According to iC, the difference between the two companies was just 0.5%. Meanwhile Terex surged into eighth place having not made the top ten last year.

According to iC, US-headquartered companies accounted for 31.2% of total revenues of the top 50 companies (up from 29.5% in 2011). Japan remains the second biggest seller with a slight fall from 23.5% to 23.2% last year.

China continued to improve its position, taking a 16.9% share (up from 15% last year) and is now estimated to be worth $30.6 billion.

It is the sixth consecutive year that Chinese manufacturing as has seen increases. When the first list was published in 2003, China had a share of just 1.3% and recorded $841 million in sales. A year later, in 2004, Sany was ranked 43rd.

China’s construction equipment manufacturers have seen their share of the top 50’s revenues climb for six consecutive years. Over the last decade, their share has increased more than 10-fold.

In 2003, the first year the Yellow Table was published, China’s manufacturers had a share of

just 1.6%, worth just $841 million. Today their 16% share is worth $30.6 billion.

Putzmeister’s new owner Sany continued its own rise in the rankings replacing Doosan as the world’s sixth biggest machinery maker, and Zoomlion has risen from 9th to 7th on the list.

Incidentally, if the Putzmeister (which was ranked at 36th, a fall of four places as it recorded sales of $750 million) revenue was added to Sany’s total the company would have easily dislodged Liebherr in 5th place.

There was however mixed fortunes for the some Chinese companies in 2011 as some struggled with a cut-back in spending as the government sought to ease inflationary pressure. Sany’s fellow Chinese giant and recent buyer of a majority stake in Schwing-Stetter, XCMG, fell out of the top ten.

Japan’s industry was shook by the March tsunami disaster and, while the rebuilding programme is a boost to manufacturer, the continuing strength of the Yen and the sharp fall in production, is reflected by six of its ten listed companies experiencing drops in position.

Report author Chris Sleight says that a rebound in the European, North American and Japanese construction markets were the key growth driver last year.

“There was also growth for some of China’s larger players, but they faced the first significant headwinds for more than a decade as the country’s stimulus spending programs came to an end. “Over the next 12 months, the continued recovery in North America is likely to be decisive for the 2013 Yellow Table,” he adds.

June 2012

CONSTRUCTION

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15

Heavy Hitters

Sany’s acquisition of Putzmeister may have taken the industry by surprise, but CMME catches up with the German manufacturer’s Middle East operation and finds a team ready to take concrete pumping to the next level. Literally.

STAYING PuTz 16

CONSTRUCTION

MIDDLE EAST

June 2012

I

t starts with a waist-high scale drawing of the Burj Al Arab and ends at eye-level with the Burj Khalifa and Kingdom Tower - Putzmeister Middle East’s wall of honour, extending as it does down one side of its office, is an impressive way to great visitors.

And it makes its point. When developer ambitions in the region have pushed to take ceilings sky higher, Putzmeister has been invariably called upon to make those dreams a reality. If like CMME, you point out that the Kingdom Tower hasn’t actually been built yet, regional director Jens Bawidamann is happy to greet you with an affirmative: “No, but we are ready.”

Truth be told Bawidamann and his team at Putzmeister have been working on the project from the moment it was announced, appointing specialist project manager Bastian Dreher to crunch the numbers and work the permutations. While it is barely out of the piling phase, he has already racked up thousands of air miles between the German concrete manufacturer’s Dubai base and Jeddah. When the

concrete pumping comes up for tender, Putzmeister and its dealer Medco will be ready to serve.

Being prepared for every possibility is in the Putzmeister DNA. An approach that has proven essential considering the turbulent few years the company has endured with, first the fallout from the crash in the market and then this year’s announcement that it was to be bought by Chinese manufacturer Sany (and while the sale may not have seemed like it at the time, it was much more to do with the company taking its destiny into its own hands, than may seem obvious at first glance – more on that later).

Like tower cranes, the fortunes of concrete technology providers - so often only specialised in the sector - are tied closely to the purse strings of governments and developers. As budgets shrunk so did their profits placing pressure on the manufacturers in the sector. A Terex or a Liebherr can re-focus their efforts to other lines that may be performing better.

If people stop building houses and towers, maybe they’ll focus on roads and sell more earthmoving equipment. There is no such luxury for specialists like Putzmeister, and so it proved in the months following the short sharp drop of the downturn.

“2008 was one of our best years ever. We had our 50th anniversary as well; in fact 2008 was a big party. It was excellent, a crazy year. We were really on top,” Bawidamann recalls. “The next year, boom!

We went from heaven to hell direct. We made 1 billion Euros in 2007 to half that in 2009. It was like someone had switched off the light. And it was like that with most companies.”

During the boom, the market was obsessed with delivery times. Contractors needed equipment and they needed it fast, he explains.

“Delivery time was key,” he makes a phone with his fist and puts it to his ear. “I was always asked, ‘when can I get this machine?’. We really were not selling on price or machine functions. We were selling on delivery time.”

He continues his train or thought, “We always had to have stock as the lead times for trucks were six months. That meant when the crisis came we were struggling with our stock.”

June 2012

CONSTRUCTION

MIDDLE EAST

17

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Heavy Hitters

Beating Burj Khalifa Meet Bastian Dreher, the man Putzmeister has placed on the Kingdom Tower. The project manager has just returned from Jeddah when we meet and naturally the talk turns to the titular project.

A mechanical engineer by training, Dreher has been working on the technicalities of how the pumping would be conducted. Having pumped concrete to 606m on Dubai’s Burj Khalifa, Putzmeister can be confident that it has the expertise but for now it must wait for the work on the tower to begin in earnest.

Putzmeister’s experience on a series of high towers in the region, including prestige projects, such as the Burj Al Arab and Burj Khalifa in the UAE, and the King Abdullah Financial District in KSA, places it in the front of the pipeline.

The message from Dreher and the team is that they are “the only ones that can do it.”

When the Kingdom Tower was announced last September it was expected to begin quickly but that has

not been the case.

According to Dreher, the test piling proved more problematic than first thought with the foundation being much closer to open water and the ground not as forgiving as experienced on Burj Khalifa. In fact the finished piling could be double the depth of Dubai’s iconic building.

“They’re having to go deeper than 100m,” he explains.

Architects AS+GG also had to resubmit designs earlier this year which Dreher explains was because the internal floor scheme was altered.

The delays have had the virtue of giving more time to work with partners modifying the concrete mix chemicals that would pass through Putzmeister’s pump – should it get the contract.

“This is the ninth month that we have been working on it,” he says. “We want to make sure that we are prepared for it when they say go. Our people, the local dealer (Medco), everyone knows what to do.”

Meanwhile production at Putzmeister’s factories was continuing apace with a rapid turnover of raw materials, trucks and steel to fulfil a seemingly endless demand. When the orders evaporated (almost) overnight, Putzmeister had a massive problem.

“You can think of it as a big wave behind you.

Somebody may turn off the light, but that wave is still coming behind you,” he says.

Like many other companies, Putzmeister had to re-structure production as key markets collapsed “After the crisis we had two ‘interesting’ and tough years. Spain, America were completely down.

Spain was consuming 200 pumps per year and that went,” he clicks his fingers. “down to zero.”

“But,” he adds, “the Middle East helped us a lot.”

During this critical period he says that the Saudi market especially proved to be a welcome safe harbour for its truck-mounted pumps.

“2011 was the first year where we were back on track with no stock. We are now thinner, slimmer – we went from 3,900 to 2,800 employees. And now we also have new products.”

Putzmeister continued to developed its ranges

“IT WAS A rEALLY gooD DECISIoN To APProACH SANY. IT CAME FroM our SIDE.”

during the crisis choosing to focus on many of its most popular and important lines. Among them are newly updated models of its 36m, 42m, 49m pumps and it will soon introduce a 56m pump, newly designed during the crisis. Concentrating on 4-axel ranges was a deliberate move to meet a shift in demand from delivery to price.

“The difference between a 4-axel truck and a 5-axel truck is between 50-100,000 Euros,” he explains. “When you launch a product with less axels, it means big savings.”

Mid-flow he gets up and brings over a model of the new Putzmeister M42-5 truck mounted concrete pump. A five boom section is now standard, he says as he points to the red arm on the truck.

“We were forced to bring in a new 42m because road regulations changed in Europe and the existing machines (like the 42-4) were too heavy. The target was to make the best 42m in the market; we have reduced the weight below 32t. We now get standard trucks (common Euro II or Euro III trucks for the Middle East include Mercedes, Volvo, MAN) so that saves costs. From my point of view, we now have a really super machine; it’s easy to service, the coolers are integrated into the support legs, less oil is needed. It’s really something. ” The machine also features bolts for the pipe holders. A small detail that could extend the usefulness of the machine.

June 2012

CONSTRUCTION

MIDDLE EAST

19

Heavy Hitters

“In the past the pipe holders were welded to the boom. Customers were welding themselves which is a safety issue as welders need to be certified to weld on the boom. If someone does not know what they’re doing they can destroy the structure of the steel – and one day that boom is going to come down and hurt somebody.”

Testing of the machine was completed at a twomonth trial in Qatar with Ready Mix Qatar (Lafarge).

“We said take it, and really abuse it every day.

Leave it parked outside every day, whatever. And I’m not trying to advertise it now, but we only had positive feedback. You cannot compare testing in Europe to doing it in Saudi Arabia or Qatar.”

He says that this testing has served as a way of launching into the market, giving potential customers a reference to judge whether it is the machine for them. As Bawidamann admits,

When Schlecht first went to China In 1958, trained mechanic Karl Schlecht started a company called KS-Maschinenbau in Aichtal near Stuttgart when he was 25 years old. By the end of the first year, the company had its very first mortar machine and Schlecht his master’s dissertation.

Putzmeister sold its first product in China through its Hong Kongbased distributor in 1970s. For the next 20 years, the company was importing into the country, mainly those of Putzmeister and another German brand Schwing which dominated Chinese concrete machinery market. However, demand for concrete pumps

20

CONSTRUCTION

MIDDLE EAST

June 2012

remained relatively low at that time because of the high prices.

By the mid-1990s, Germans began to establish subsidiaries in China with Putzmeister, sensing a shift in demand in the rapidly developing market, building its third factory in Songjiang District of Shanghai.

Ironically, it was exactly the time when Chinese concrete machinery manufacturers started to boom.

Therefore, the market share of Putzmeister kept decreasing even though sales were growing over the next few years.

Over the past 50 years, Putzmeister has always maintained

a typical low-profile champion market strategy. Preferring to focus on mortar and concrete machinery it has always maintained the best technologies and products, such as its closed hydraulic system and S-pipe distributing valve (both invented by Putzmeister).

According to the survey on foreign brands in China construction machinery markets initiated by Construction Machinery and Maintenance Magazine, “the leading position of Putzmeister in concrete pumping industry is unshakeable.

It is the choice of almost all the interviewees from concrete industry.”

Putzmeister machines remain a premium product in a price conscious market. Proving that the machine can run up to eight weeks at a time could be an invaluable argument when it is compared to cheaper alternatives.

“Last year when market demand jumped from delivery time to price, we entered into a price war. We are in a situation where you cannot afford to lose a deal and if you compare to some Asian manufacturers we are more than double (the price).

So doing this is important. We cannot fight them on price but there are others that are producing good quality pumps and they are the ones that we need to compete and fight with.

“If I lose a deal to some sixth quality producer from China, it’s ok. People understand that. But if I lose against a manufacturer at more or less the same price level then it’s not so funny. That’s why we work hard to keep our customers. We educate them, we say look this is a premium product, it costs more than the others, but we are offering the full package, parts, service and training.”

While the Putzmeister Middle East’s home UAE market has declined, the company has happily progressed in other markets. Some Bawidamann says like Oman may have been neglected in the past but have progressed since 2007.

“Now you can call it a Putzmeister country,” he says. “In 2006 our old dealer sold one pump, with International Heavy Equipment we are now selling between 20-25 truck model pumps and growing every year. I learnt in the boom times you need to focus on the small guys as well as the big guys as a small country today maybe the big-shot tomorrow.

“Now you see all the UAE companies jumping to Oman when they were laughing at it in the past.

Family companies there were like islands in the pacific, the competition was the local neighbour or friend. Now due to the crisis it’s like hungry wolves coming to Oman to catch the sheep there. Like the pumps, the competition gets tougher and again it’s a price war.”

Being part of Sany While it is no sheep itself, Putzmeister’s acquisition

by Sany has been portrayed in the media as an opportunistic strike by the Chinese company to snap

up German know-how before the market and the company recovers its strength. Bawidamann says this view is quite far from the reality.

“I’ll be honest, given that last year saw us become thin, fast, earning money again and back on track, I never had in mind that we would jump to Sany. It really came out of the blue.

“Call it something to do with pride, but the first few days were not easy. But then thinking about the whole picture, I realised it was a really good decision from our management to approach Sany. It came from our side,” he affirms.

He is careful not to name names but he says that Putzmeister had been worried that a certain struggling other German concrete manufacturer’s financial difficulties (as CMME doesn’t have to worry about such things, we’ll say it: Schwing-Stetter) could have gone to Sany instead. Placing its major rival with China’s number one company would have had serious repercussions for Putzmeister. It would be a question of when and not if it would be squeezed out of the market.

“If the number two company outside of China had combined with the number one in China, we would have had to try and compete with them over the long-run. We could have done it for 4 or 5 years but there would have come a day where they would have been too big and too powerful. There would be a day where we could not fight.”

In his opinion, going with Sany was the best

THE COLOUR OF

decision. “If you look at global production, 7,000 truck-mounted pumps per year are produced worldwide and 5,000 are going to China.

Sany is the number one in China, but outside the world we are number one. Take the Middle East, we have been here for over 32 years, we have the dealer network and know the market; and understand you have to be flexible and know the people.

“Sany tried it but in the Chinese style. It worked but it was not that successful. Sany had a product, but the rest, well; there was still room for improvement. Sany have seen that somehow that it is not working and yet have looked at us, like Asterix and Obelix, and wondered ‘how are these little guys doing it’,” he jokes. “Now it is like this Putzmeister is owned by Sany, but we remain independent, with our own management, engineering and production.”

Other companies like Zoomlion and CIFA have taken another approach he points out and says, “you can see it is not working that well.”

“There are some markets like the Sudan where Sany might take the lead, but in the key markets outside of China, such as the US, Europe and the Middle East, Putzmeister is doing the business.”

For the Middle East, that means Putzmeister will handle the aftersales and service of the existing Sany equipment but he says they will concentrate on selling Putzmeister.

“I’m not having a two-brand strategy, it’s one brand. Putzmeister.”

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Productivity is only relative to life-time cost of ownership and the serviceability of your equipment.

Genie® telehandlers, offering fixed and rotating models with lift heights ranging from 6 m to 25 m and lift capacities from 2,500 kg to 6,000 kg, are easy to operate, service and maintain; all without compromising on performance.

It’s win-win for operator and owner. Both get a machine with the performance to meet the demands and pace of any worksite.

The operator gets a machine that they can handle almost instinctively.

TEL WEB EMAIL

+971 4 399 0381 www.genielift.me awp.infome@terex.com

Genie is a registered trademark of Terex, South Dakota. © 2012 Terex Corporation

June 2012

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Training Special

TRAINING WAY CMME joins the team at Genie to see how they take training out of the classroom and onto the machines in Dubai

T

he last time CMME saw the team at Genie was at Intermat. The tour around its telehandler range had taken place during a chilly and wet blustery afternoon. The machine was great, the weather was not, and although product manager’s Gert de Boon walkaround was an informative and entertaining trip through its Middle East credentials, it wasn’t necessarily the most enjoyable 30 minutes this sodden journalist had experienced.

We next meet in the Al Quoz district of Dubai and it’s the hottest day of the year so far with the mercury touching 45 degrees. Credit de Boon, the Dutch-based tutor for the day, he is racking through his overview to a group of a dozen dealers and customers, giving direction and assistance like it was a mild spring morning.

Valuable time The purpose of the two-day telehandler training course is to equip Genie’s regional representatives with the knowledge that will help them out in the field when talking to customers about the virtues of the machine, an overview of Genie as a business, and also to understand their customer’s demands better.

Training days like these are popular routes for manufacturers looking to push their product to the market via their dealer network. CMME is tagging along to see if they really have value for the end-user.

“We are creating some specialists here,” says de Boon as one of his students starts to roll a Genie GTH-4017 SX out into the open at of the Al Laith Scaffolding Yard.

Genie believes that in its telehandler range it has a reliable, capable and, they stress, simple machine ideal for the Middle East market, but to de Boon they the course is essential if its dealer network is to understand that message.

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Putting safety first If the team attending Genie’s training day in Dubai needed any reminding about how far the region has to go in terms of safety it didn’t have to look far. In fact you could see it out the window. Outside its offices in the Al Barsha area of Dubai a maintenance crew were trying to the fix air conditioning piping on the outside of the building, using a window cleaning basket and a rope dangled 10m to the floor. Three workers, one in the basket, attempted to lift 2m long pipe sections without any safety equipment, harnesses or gloves. At one point the rope slipped and the section fell almost to the ground.

The point that it would have been easier and safer to have used an access platform was not lost on

those watching and still wearing hi-res vests. Genie itself has worked hard to improve the safety aspects of its equipment, including introducing a prototype of a new Operator Protective Structure (OPS). The OPS prototype is an optional device for installation on an articulating or telescopic boom and provides secondary protection for operators in the event of contact with an overhead obstacle in certain applications.

“The Genie team is aware of incidents where operators made contact with overhead obstacles while operating aerials,” said Scott Krieger, Senior Product Manager, Booms and Telehandlers. “Ultimately, the operator, in conjunction with the worksite

supervisor, is responsible for identifying and avoiding overhead obstacles. But as a secondary measure, Genie is working both independently and with various partners to provide protective solutions for a variety of worksite conditions.”

Based on of the concepts of other SAE operator protective standards, the Genie OPS can be attached to booms with 6’ to 8’ platforms while maintaining visibility.

Also on display in the Genie booth at Intermat was the “SkySiren,” a solution developed by Lavendon, as well as prototype “Sanctuary Rails”

by AFI. Genie is reviewing prototypes of both and have approved their installation.

He points over to the machine that is beginning to reverse back towards him.

“The great thing about this is that they notice now how the machine works. So it is effective training.”

The group participating on the course come from across the Gulf region. There are representatives from Qatar, the UAE, Saudi Arabia, Bahrain and Iraq.

While most of them have not met de Boon before they all know Genie’s Middle East and Southern Africa general manager, Sharbel Kordahi, who is overseeing the training.

He says that today’s group features a mixture of technical and commercial expertise.

“Some of them come from a technical background, others have experience of other brands. So they are well familiar with what a telehandler is.”

Before being let loose on the machine, de Boon says that the group spent the previous day in the classroom. Today may be about taking the GTH-4017 for a spin but yesterday was where the knowledge they will need when they return to their dealership is built up.

During the theory training, the group waded through the technical information, taking the machine apart on paper.

“We spent a day going through the theory,” he explains. “We went through the reason why we do things, the strengths of the machine. It’s about giving them good information that they can do something with in the market.”

A theory part of the course is done on paper, as exercises and also on video, he explains.

“For instance, I have a movie that I showed them yesterday that shows that having a hydrostatic transmission means that when you put 4 tonnes on your forks it can drive up a sharp slope like that (makes 45-degree angle with his hand). If you show what a machine can do, then people are convinced.

June 2012

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Training Special

“IF YOu WAnT TO uSE Or SELL A TELEHAnDLEr, THEn YOu nEED TO knOW WHAT IT CAn DO AnD HOW IT WOrkS. THAT’S THE BASICS.”

Our main thing is the simplicity about our machines if you have powershift then you more components.

It’s detail like that I want them to know and understand.”

From the outside it would appear that the kinds of information an operator would need to use a machine is a long way removed from what people appointed as salespeople need to sell it. De Boon argues that actually the two are much closer than you may realise.

“If you want to use or sell a telehandler, then you need to know what it can do and how it works. That’s the basics otherwise you don’t have the product knowledge you need.”

He continues: “Otherwise how can I hope to sell it?

For instance I cannot sell a crane because I think I know how it works. Product knowledge, that is what this training is all about.”

At a time where dealers are frequently extolling their virtues of being able to understand the demands of the customer, it is interesting to see what feedback they give back to a manufacturer like Genie at an event like this. Whether its stability, reliability or speed on the ground or to height, de Boon says there is a difference between those that are knowledgeable about the machines - and those that aren’t.

“Let me put it this way, everybody has their own level of knowledge or experience with machines,” he remarks. “Everything usually comes from an operator performance point of view, but that’s not always the only thing from a manufacturer’s perspective that you want to say.

“There are always more things behind a machine in terms of why you develop a model in a certain way.

We all (the manufacturers) go 17m here but there are other things that are more important like how you service, the reliability, etc.

“That’s why you need to bring people to an event like this.”

Benchmarking is a critical component of the course, and as part of the theory element of the

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course, the product manager took the group through the specifications of not only Genie’s machines but others that are its competition in the market.

His role at a training session like this is about making the dealers understand those differences and the virtues of say, a Genie machine versus a JCB or Merlo telehandler.

Only then can they distinguish themselves in an increasingly competitive environment.

“They (the competing machines) can all lift 4 tonnes or lift to 17m or 3 tonnes to 14m, that’s always the same,” he comments. “When you look at our telehandler range, you have to show where you are different and be able to know where it is beneficial for customers.”

This is our second meeting and I’m beginning to get the impression that de Boon is a bit of stickler for detail. The course is carefully laid out and scheduled, for instance. The hosts Al Laith Scaffolding (a Genie customer since 2006) even draws special praise from him.

“What I notice about this company is that everything is so organised, when we arrived this morning they were painting the (scaffolding) tubes and everything was exact.”

He breaks off as we talk when he notices one of the trainee operators starting to veer off course.

“Watch it,” comes the call as he moves out to stop a minor accident.

With de Boon required, Sharbel mentions that in his opinion the telehandler is “one of the most dealer-friendly machines we have here. You don’t sell a lot to rental companies but direct to construction companies.”

According to Genie’s regional general manager there are 1,500 telehandlers sold in the Middle East.

He explains the company is attempting to be realistic in its ambitions.

“We are not saying that we can grab 50% of the market but we do think that 10-15% (150-200 machines per year) is realistic. If we do we can grow it from there. These guys need a lot of support and our sales strategy depends a lot on the dealers’ capacity to service and to sell. The training is an important part of it.”

ADCB BUSINESSED While sitting in the operator’s seat is undoubtedly the fun highlight of a thorough couple of days there If you wish to secur is serious work ahead for those attending the course.

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Training

SHARPEN uP tHEIR SKILLS Who should be responsible for training? CMME look at how sharpening up the skills of machinery operators is often left to dealers.

50,000 By 2015, Dubai will be training 50,000 unskilled workers as it focuses on raising the standards of incoming worker talent to the construction industry in the emirate.

I

t goes without saying that buying construction equipment can be an expensive exercise. It can be a maddening fact that despite the risk to machinery and lives on busy construction sites, that many companies are still happy to take risks by not properly monitoring how the equipment in the field and on-site.

In a region still heavily reliant on man-power to cover shortage, developing, improving or even ensuring that operators know what they are doing is often left by the wayside as companies seak to build as quickly as possible.

Fortunately there appears to be a gradual shift in understanding that training matters.

This is being driven by new interest in saving costs and lowering risks by government and the municipalities seeking to fight off high turnover on sites and make them as productive as possible.

The highest profile move was Dubai’s annoucement earlier this year that it will set up its own training

centres in the home countries of the hundreds of thousands of workers drafted into the emirate.

The move is a deliberate attempt to control the flow of workers and raise the standards of skills they may or may not have before they even step foot on a construction site.

It is not yet clear whether this will mean a flow of ready made machine operators into the market however. Training on the job will remain, as it does elsewhere the principle method of giving the skills necessary.

Often training is arranged by those buying the machines but operators are not then always given the pre-requisite training necessary, risking the equipment and as some tragic cases have proved, their own lives.

Putzmeister’s regional director Jens Bawdimann gives an example.

“A guy buys a machine but he’s using some ‘operator’, a poor man from India who has just arrived

last week, he asks him ‘can you use the machine?’, he says yes, I can’. And then it starts to cost more money because don’t how to use it properly.”

He continues: “It’s like taking a Dubai taxi driver and put him in formula one car. Maybe he can drive it a bit, but it will break down.”

This gap in skills levels has created a vaccuum that has been quickly occupied by manufacturers and dealers in the region.Putzmeister is among many that are offering subsidised training to customers.

In such schemes, operators are taken off site and sat in a classroom and given technical training that may have lacked in the past.

“We have two options,” says Bawidamann. “In the Omani market we have begun to offer customer training. We have done six training sessions of theory and practical. We give training on power, hydraulics and troubleshooting.”

Putzmeister has its own academy in Germany and it’s there where most crucially not only dealers but

June 2012

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Training

UAE to train at the source In an effort to control the flow of unskilled workers into the country’s construction sector and to bypass private recruitment agencies, the UAE will be setting up training centres in their home countries.

“The UAE will start by opening an office in India in early 2013 to train and rehabilitate workforce,” said Saeed Abdullah, the National Productivity Improvement Programme manager at the Federal Demographic Council (FDC), adding that the proportion of unskilled labour in the construction industry is about 85 per cent. He added that the

“first batch of [trained] workers will be 5,000 in the first year, 20,000 in 2014 and 50,000 in 2015”.

“The UAE government seeks to reduce the number of unskilled workers in the construction sector which employs the highest number of unskilled workers,” he said.

He said that the workers will have to bear the cost of the training estimated to be up to Dh6,000, but will no longer have to pay thousands of dirhams to private recruitment agents.

While India will be the first country where such training centres will be established,

Pakistan and Bangladesh will follow.

Last year, the UAE government instructed relevant labour market bodies to set minimum qualifications for some jobs, starting with the construction sector. These qualifications have to be approved by the FDC chairman.

The council of ministers also instructed relevant bodies to lay down a general construction index containing a number of technical criteria for higher productivity in this sector, as well as decreasing the number of unskilled workers

in accordance with laws that assist contracting companies to use advanced technologies in construction.

The cabinet also instructed all relevant bodies to draw up economic plans and follow up on the UAE’s workforce by approving a balanced growth pattern that is characterised by economic diversity, relying on a skilled workforce and modern technology.

The council of ministers also instructed all bodies concerned to abide by these resolutions, and mandated the FDC to implement the resolutions in coordination with relevant bodies.

“IT’S IMPORTAnT BECAUSE THE OPERATOR SHOULD KnOW WHAT HE CAn DO WITH IT.”

Whether it’s on the job training or advanced simulator technology, training is now widely available, although it is not always taken up by companies in the Middle East region.

also their customers, ie contractors, who can take adavantage of a range of training options. These run from basic to professional levels.

“I always recommend it, as it is training that goes on for a week from 9am to 6pm in the evening. This is the best. People can see how the machine is built, how they are tested and we have simulators. All the tools to go into the machine. This is something that you cannot do in Oman say.”

Jorg Muller of Liebherr cranes explains that his company always offers training for its machines.

Dismayed by what he percieves as a dissapointing level of safety in crane erection in the region, training is particularly close to his heart.

“At the top management level, I think people understand why it is important but some are simply not aware about these issues,” he muses. “It is especially true with the crane operators. Some of them are simply not trained.

“We always offer training for crane operators because most of them don’t even know what the crane can do.”

Like Putzmeister, the crane company has training available overseas. Tellingly it has not proven popular, yet.

“We do for example training here for the customers and for technicians. But (in terms of operator training) we have not done anything here yet. We would if there was a request.”

“It’s important because you have good types of equipment and the operator should know what he can do with it.”

The supplier/dealer relationship as has been suggested (and as typified by Genie’s training day in the previous article) become an informal route to drip feed training through the system.

Muneer Chan Basha, Haulotte’s Middle East business development, says the company always offers

training. “We always give training on new products,” he says. “But our products will stop if over-loaded...”

Sometimes, the only place to do training is actually on the job, especially in remote locations. UK based consultancy firm, Simian Risk which launched in 2005 and has offices in Dubai, is providing bespoke scaffolding and work at height training and supervision at a new oil field site in Southern Iraq.

Simian Risk will be working closely alongside local workers to train and assist them in erecting scaffolding for building works at the site, which currently employs thousands of Iraqis.

Simian Risk director Ian Fyall, who will be leading the project, said: “The aim of our training initiative is to create a culture of self sufficiency in the region. This is a massive project, with a whole infrastructure being built around the oil field. Therefore it is essential that those who work on the site fully understand the need for robust health and safety procedures, and adhere to those rules.”

“The oil companies we are working with are placing a real emphasis on local employment; we will be out there initially for six months to bring the workers up to a high standard of health and safety. The country has seen so much turmoil and this is a great opportunity for the Iraqi people to take ownership of rebuilding their infrastructure - with homes, industry and offices.

It is a privilege for Simian Risk to be able to play a small part in that, and create a safe and healthy working culture for the people of the region,” Simian added.

Ian added that Simian Risk, which opened an office and training centre in Dubai last year, is looking to capitalise on the continued development of the Middle East oil and gas sector.

“The region’s petrochemical sector offers some great opportunities and this is a very niche market that we have been able to expand into. It is still within scaffolding and working at height, just with a more industry orientated focus rather than construction. The construction sector is slowly picking up in the Middle East after the global recession, and we are working hard to get our name recognised for when the bigger developments start again, as we suspect they will.”

Simian Risk was also the only UK firm to be invited to exhibit at the recent Middle East IOSH Conference, held at the prestigious Muscat Bank HQ in Oman. Simian Risk was one of four exhibitors at the conference, which was attended by 150 health and safety professionals and government representatives from across the Middle East.

Director Simon Hughes said: “We have been proactive members of IOSH Middle East for over a year and to be invited to exhibit at the Muscat Bank was a real coup for Simian Risk. The event was a great opportunity to get our business known in the region and develop strong relationships with other well known companies and local governments.

“We were invited to present at the conference last year and participated in a seminar on the need to develop strong working at height standards in the Middle East with the Abu Dhabi Municipality.

“The region is still some way behind the very high standards we have in place in the UK, but we can see many companies in the Middle East are working hard to improve health and safety. We are determined to play a part in this drive by providing first rate work at height training programmes to help reduce the number of industrial accidents in the region.”

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Market Analysis

From the Floor up Jonnie Keys, General Manager of Euro Auctions, reviews the world market of new and used construction equipment and machinery, with an insight to what’s hot, what’s not and who’s buying.

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R

ecent events in the global economy have produced surprising results over the last four years. Like water, used machinery and construction equipment has a way of finding its own level and globally, regardless of manufacturing output, used equipment is highly sought after. This results in new markets and emerging demands dictating where machinery is required in the world. With Caterpillar Inc releasing impressive recent financials for 2011, the thirst for used machinery and equipment seems unquenchable. At the end of 2011 the expectations for market activity in early 2012 was optimistic, and now with the first quarter (Q1) of 2012 behind us, what is the feeling in the market for the rest of the year and what has the market to offer?

Manufacturers are now producing again. In the downturn, many geared down quickly and with demand now increasing, the winners are those that are able to gear up production efficiently, as the Year End figures from Caterpillar reflect. With the cost of new equipment up by around 20% on prices in June 2009, the used market is still strong. In mid to late 2011, regardless of make, model and year, prices strengthened for late-used and nearly-new equipment, with the strongest rallying in the 12 to 24 month class.

In 2012, the current trend, which is predicted to continue, is that interest in older machines and equipment in the 24 to 48 month class are the next focus on the ‘wish list’ as market stocks deplete. But what has caused this market shift? Again, showing no sign of fear, Caterpillar will launch 64 new machines in 2012 and will spend $4billion on capital investment.

Euro Auctions has repeatedly seen over 30% of all plant sold leaving the UK and Europe for projects in Australia, South Africa, South America, Central America and India. With the UK still looking for large construction or infrastructure projects to commence in the wake of the Olympics, or house building to change up a gear, the future for the used market is overseas. UK prices of good second-hand equipment held through Q1 and look set to hold in Q2.

In 2011, 12 to 24 month old equipment was reaching premium prices, closely followed by good 24 to 48 month old stock. This trend has continued in 2012 with world buyers now being more specific. High in demand is mining and extraction equipment with large dump trucks at the top of the list and anything with approaching 300 hours on the clock are seen as just ‘run in’ so many owners are sitting tight as projects end, seeing values rise as demand increases.

Emerging markets are always the first to be seen at auction and India is a regular new participant with an appetite for small to medium sized construction machines such as backhoes, dumpers, mixers, dozers and excavators.

European demand has been affected by strengthening Sterling, leaving the UK more

“AT THE End Of 2011 AnALYSTS prEdICTEd THAT ACTIvITY In THE UAE WOULd fLATTEn dUrIng 2012 And COnTrACTOrS WOULd ExpErIEnCE A TOUgH 12 MOnTHS.”

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Market Analysis

expensive than the rest of Europe. In Q1 of 2012 Australia continued its huge demand for crushers, screeners, large dump trucks such as the Volvo a40e, CAT 740, Komatsu hm400 and large excavators in the 50 tonnes plus category. With peace in North Africa continuing, wheel loaders, generators, backhoes dumpers and mixing plants are in demand and are being hotly contested. It was apparent that much equipment was being shipped through Africa bound for destinations such as India, South America and also Australia. Due to world demand companies like Caterpillar, JCB, Doosan, Volvo, Terex and many others have reignited production, but certain ranges are like endangered species with CAT 785, 789, 797 hard to find and CAT D10T and D11T almost extinct.

In Q1 it was still evident that Europe has its problems to solve and economies are faltering: Ireland is still in the doldrums, Italy has slowed right down, with Greece and Spain feeling a lot of pain. The demand for equipment in Europe rallied through 2011, however, in 2012 according to OffHighway Research the next 12 months will be flat and could see plant sales drop by 2% across Europe and a further 2% in 2013.

At market, Germany is the largest buyer of construction equipment in Western Europe and during the last 24 months increased acquisition by approximately 70% over 2009. Increased construction output in Eastern Europe is being led by Poland with a 34% increase on output over the previous year, whilst Romania shows 15% and Sweden 7% growth. These figures are reflected by the activity in the market. Decline is led by Slovenia -20%, Portugal -12% and Spain -11.5%.

Overall while Europe has seen a collective 1.4% decline, over 50% of used equipment is leaving the Eurozone for emerging regions. For those who are buying, the most sought after machinery categories across Europe are mini excavators, crawler excavators and telehandlers.

Australia continues to be the world’s number one client with no let down in the mining and extraction markets. In the last three months demand from

“WITH COST OF LABOUR, MATERIAL AND PLANT CONSTANT AND WITH LITTLE NEW PROJECTS TO TENDER, ACTIVITy HAS BEEN SLOW.”

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‘down under’ has not wavered and the exchange rate between the Australian Dollar and Pound Sterling is still making transactions from the Northern to the Southern hemisphere extremely attractive. In addition, large pipeline projects as well as the ongoing infrastructure works are creating demands for specialised equipment with pipe welding equipment and trenching machines in high demand. The Australian ‘cash cow’ is still mining, with contractors, operators and dealers seeking good quality low hours equipment. Q1 was strong in this region with Volvo, Komatsu, CAT and JCB being the preferred makes.

In the last three months, New Zealand emerged as a new contender having new found demand for general contracting machinery following the lead from Australia and favouring the same brands.

Asia is fast becoming a powerhouse in the global economy. Following a positive start to 2012, India is set to become the next newly emerging market. In the next five years India will invest (US) $1.2 trillion in infrastructure projects, including transport, irrigation, oil, gas and telecommunications, which will need equipment and machinery. At market Indian interest is already being seen with smaller construction companies buying good used equipment, predominantly backhoes, telehandlers, compressors and mixers.

Make is not important at this stage and older machinery is preferred. Vietnam is emerging as a new contender in the world buying list, resulting from the nascent economy with major road and infrastructure projects demanding not only all manner of dozers and excavators but general construction machinery, mixing plant and tower cranes. Japan is still recovering and companies like Komatsu, Hitachi and Hyundai that are based in the area and were affected by the tsunami, have seen factories either wiped out or shut down with failing supply chains. Caterpillar is actively focusing on China as a new target market and as a result the used market is following in the same footsteps. In Q1 this year China has been visible in the global market place, acquiring equipment not only for its own domestic use but to accelerate the growth of extraction of raw materials in Australia.

The news in 2011 that huge infrastructure projects were under way in South America has resulted in a good start to 2012. Recent announcements include 5000 km of new highways under construction in Brazil and four major initiatives worth an estimated US$ 30 billion in Columbia which include highways, seaports, airports, railways and river ways. With mining in Chile, the global message is that heavy construction equipment and mining machinery is on this particular shopping list. World buyers from South America are looking for quality used excavators with Caterpillar and Hitachi being preferred brands.

The UAe flATTens At the end of 2011 analysts predicted that activity in the UAE would flatten during 2012 and contractors would experience a tough 12 months. With cost of labour, material and plant remaining constant in 2012 and with little new infrastructure projects to tender for until 2013, activity has been slow. The value of cancelled construction project in MENA rose by 8% in Q1 of 2012. The result is approximately $719bn of construction works put on the backburner

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Market Analysis

or cancelled altogether, with over 50% of these projects being in the UAE. Heavy equipment destined for infrastructure and cancelled canal projects (777s, 789s and 797s) is now moving out of the Middle East to where it’s needed most – Australia. Where last year the trend was to ‘hang on’ to machinery until the price changed, that time has now come. With smaller projects still moving forward, there is a need for lighter machines such as graders, dozers, backhoes and wheeled loaders. CATis still number one and demand has shifted to older models up to the six years old with low hours.

Russia continues to see growth which is converting into demand for plant and machinery. Large civil engineering projects including the 2012 APEC (Asia-Pacific Economic Co-operation) Summit in Vladivostok and the 2014 Winter Olympics in Sochi are contributing to the need for construction machinery and equipment. In February, the complicated transportation upgrade was taken a step closer to finalisation with the completion of the main Olympic transportation tunnel. Also, with the 2018 FIFA World Cup being played in Russia the need for improved infrastructure is paramount, with new cities to build and new stadiums and airports to construct. Russia is actively seeking earthmoving and road building machinery of all makes, models and size. Most sought after machinery for Russia includes backhoe excavators, mobile excavators and tracked excavators.

In early 2011 North Africa saw demand for plant and machinery come to a grinding halt due to the ‘Arab Spring’. With peace and confidence returning to the region, buyers from Sudan, Egypt, Libya, Algeria and Morocco are trading again. The first quarter of 2012 has seen countries in the region purchasing and demand is increasing. The main machinery requirement is for older models of CAT wheeled loaders, large generators and compressors as well as older model agricultural tractors.

African nations always have interest at auction.

In Q1 countries such as Nigeria, Libya, Egypt, Syria, Tanzania, Ghana and South Africa have been buying well. The improvement in these markets has shown

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“HEAVy EQUIPMENT dESTINEd FOR CANCELLEd CANAL PROJECTS IS NOW MOVING OUT OF THE MIddLE EAST TO AUSTRALIA.”

a marked interest in larger pieces of equipment.

With logging and mining continuing in West Central Africa, currently Ghana and Nigeria have a good appetite for equipment. International contractors are working in that region and are bringing equipment with them. As was the case in 2011, many of the project crews from China are bringing less than reliable home brands, which is creating a market for more reliable USA and European makes of all equipment. There is also an increasing demand for quarrying equipment, with crushers, screeners and conveyors in high demand.

At auction in the last three months, the American buyers have been more apparent after an absence of some 12 to 18 months. Buyers from the US are looking for large heavy mining equipment for the home open-cast coal and iron ore extraction markets. As a result, big dozers and dump trucks for the contracting market are always on a buyer’s shopping list. Older equipment is going from the USA to South America and beyond. America likes CAT, and that’s the way it’s always been.

So looking ahead, manufacturers are now producing again and new stock is commanding ever higher prices; there is increasing demand for quality second-hand equipment, with certain models even making a premium. Some new markets are showing real interest and the outlook is generally optimistic.

This all means that the market, while patchy in places, is still going to be buoyant. But it is worth bearing in mind that buyers are also going to be more discerning, so it remains important for sellers to pay attention and present used plant and machinery in the best possible condition and be prepared to see it shipped to the parts of theglobe that need it most.

Market Analysis

Back on track Could the Middle East soon be linked by a real rail network?

I

f you’re looking for an indication of how important building a rail network across the Arab-speaking world, then considered its importance at a recent meeting of the Gulf Corporation Council.

At the meeting finance ministers discussed the status of billions of dollars in development aid to be given to Bahrain, Oman, Jordan, Yemen and Morocco.

The move is intended to fast-track financial support at a time when aid to developing countries has fallen significantly due to the global economic recession and regional developments in the Middle East.

The priority for the region is to link the advanced rail construction that is underway at record speed in the wealthier countries such as Saudi Arabia and the UAE with other regions whose development is being restrained by a lack of infrastructure investment.

One day it really could be possible to travel from northern Africa to the south of the Gulf by rail. But first, the finance ministers agreed, financial aid to the two GCC member states - Bahrain and Oman as early as possible.

The finance ministers, who met here as part of the GCC 93rd ministerial meeting of the GCC Finance and Economic Cooperation, also reviewed the intra-GCC railway project.

Late last year, the Gulf states announced the setting up of a $5 billion fund for development plans in Jordan and Morocco. They will receive $2.5 billion each for development projects.

Al-Assaf pointed out that important aspects related to the creation of the fund were discussed at the meeting.

“But, the details on how to disburse the aid would be decided by the consultative committee

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meeting of GCC heads of state, to be held on May 15 in Riyadh,” he added.

Al-Assaf also underlined the urgent need for financial assistance to these countries especially Yemen. The Kingdom and also the GCC member states in their individual capacities have also been working to help the struggling Egyptian economy.

The ministers also discussed a proposal to lift the tariff on imports of eight commodities widely used by the persons with special needs.

According to Frost & Sullivan’s “Insight on the GCC Rail Sector’ published last year, the rail industry in the Middle East is the fastest growing in the world.

The current success of regional rail projects has

signaled that having a Middle East rail network is possible. With projects operational in the UAE and Saudi Arabia, other regional countries are moving full steam ahead with their rail plans. Middle Eastern countries are now developing over $100 billion worth of projects to be completed in the next two decades.

“With the changing economic and demographic scenario, railway networks are considered the backbone of the public transport system and important for governments to achieve their socioeconomic development targets,” said Srinath Manda, Program Manager, Transportation and Logistics Practice, MENA. “The UAE has been a pioneer in the region’s rail revolution with its ambitious Dubai

Market Analysis

“THIS YEAR, RAIL IS ExPECTED TO BE THE MAIN

AREA OF FOCUS IN THE GCC TRANSPORT SECTOR.” Metro Project, which was conceived and executed in remarkably quick time, triggering a series of similar projects in the Gulf.

“Currently, all the GCC governments are increasingly focussed on developing rail projects, either for passenger or freight transportation, with rail projects worth over $100 billion already being developed in the region,” commented Manda.

The dream of a GCC rail network comes closer almost with every passing day.

Last month saw the third TransOman Conference 2012 take place in Muscat. The Sultanate’s railway project, linking it with other GCC countries, will boost the transport and logistics sector in the country, said HE Dr Ahmed Bin Mohammed Al Futaisi, Minister of Transport and Communications.

The railway project in collaboration with other GCC countries will change the landscape of the country significantly and enhance capabilities of ports to carry out the job in a better and more active manner, he added.

Last year saw work on the project stall as political uncertainty rock Oman’s plans but by November for designs were once again requested and half-way through 2012 it appears to be back on track.

The UAE is progressingly rapidly with its Etihad Rail project, with major contracts awarded including the main construction contracts for the first phase of the UAE’s $11bn national railway in 2011. The $898m construction contract for civil and track works on its first phase of the project was awarded to a consortium led by Italy’s Saipem last October. It will be joined by fellow Italian contractor Tecnimont and local firm Dodsal Engineering & Construction on the project.

Drivers close to the Mirfa depot that will house the trains are already bemoaning the construction work taking place on Etihad Rail. This is despite the group, which is responsible for the earth works and track site grading, bridge structures, communication systems and the development of a depot at Mirfa, still in the process of carrying out the design design, procurement and slowly notching up the construction of the railway infrastructure.

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In May Etihad Rail said that it had signed a Memorandum of Understanding (MoU) with DP World for the development of an intermodal rail terminal in Jebel Ali Port. This important agreement, which was signed by Chairman of Etihad Rail Nasser Al Suwaidi, and Chairman of DP World Sultan Ahmed Bin Sulayem, represents a further significant step forward in the development of the rail network and in placing Jebel Ali at the heart of the project.

Saudi Arabia arguably has the most ambitious task ahead of it with the the $7.9bn Haramain highspeed railway which will tie together the expanse of the Kingdom. A year ago the final construction contract for phase two of the railway was announced and the construction is already sucking in hundreds of machines.

FAMCO said that 62 Volvo EC210BLC excavators have been bought in 2012 and 100 units in 2011 by Al Swailem Company for the project which is linking Makkah, Madinah and Jeddah.

The Kingdom has already completed one of its major projects with 2011 seeing the opening of the Mecca metro, which was up and running just in time for the annual Hajj pilgrimage. The planned on Mecca Mass Railway Transit (MMRT) system, is still at the consultancy phase however with Ernst & Young and law firm Ashurst as transaction advisers for the MMRT project.

Elsewhere Qatar is carefully nurturing its QRail project, a $35 billion integrated rail programme which will be a crucial component of shipping football fans around at the 2022 World Cup. It is also central to its plans to upgrade its infrastructure as part of its on-going 2030 plan.

One of Kuwait’s key infrastructure development initiatives is the implementation of an advanced public transportation system. As such, the Ministry of Communication (MoC) is developing a railway system which will link Kuwait city to Kuwait airport, seaports, and other GCC countries. The project will enhance Kuwait’s regional integration, boost trade volume, and create new job opportunities, it says.

The Kuwait National Rail Road System will be an integrated rail network with 511 kilometers double track total length. The Rail Road system will serve freight and passengers and will have a 120 km/hr regional lines speed and a 200 km/hr high speed. The project will be implemented as a build, operate, and transfer (BOT) agreement. The project is currently in the feasibility study phase.

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page 52 AUCTION TIME

Don’t get out-bidded on the auction floor with our Be A Better Auction Buyer Guide.

The secret it seems is to do your research before you enter a price war.

page 44

DIG DEEP WITH CAT

Cat claims its newest excavator is designed for the Middle East climate.

page 49

GETTING A ROLL-ON

CMME takes a look at the pressing issue of the roller market in its latest sector analysis.

page 56 OMANI PLAYERS

CMME’s helps you find a dealer in the Sultanate of Oman, the GCC’s best kept secret.

page 44 FULL ACCESS Haulotte unveils the new prototype, HT23RTJ RT Boom.

June 2012

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MIDDLE EAST

43

New Products

Middle easT honed excavaTor froM caT

haulotte unveilS neW pRototype ht23RtJ Rt BooM

Why get it?

Caterpillar reliability powerful hydrauliCs set-up

Why get it? perfeCt for speed freaks those looking for optimal maneuverability

T

he new Cat 340D L hydraulic excavator can deliver steady high production with exceptional durability, reliability and low operating costs. The new model features a Heavy-Duty High Wide (HDHW) undercarriage, which significantly increases digging and lifting performance and allows the 340D L, with its fuel-efficient Cat C9 engine, to outperform similar machines having larger engines. The 340D L’s broad selection of front linkages, buckets and work tools ensures its versatility, its quiet, comfortable cab ensures operator productivity, and its reduced maintenance requirements ensure minimal downtime.

Compared with the 340D L’s companion model, the 336D L, the new model’s HDHW undercarriage is 330 mm (11.8 in.) wider, 270 mm (10.6 in.) higher and 1 360 kg (3,000 lb.) heavier. The HDHW undercarriage provides enhanced stability, greater lifting power—both over-end and over-side—as well as increased ground clearance in rocky terrain.

The HDHW undercarriage also features multiple reinforcements in the track roller frames and carbody to ensure an exceptionally durable design. In addition, the undercarriage uses grease-lubricated tracks that decrease internal bushing wear, reduce travel noise, extend service life and lower operating costs.

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With a net-power rating of 209 kW/ 285 hp (ISO 14396), the six-cylinder Cat C9 engine incorporates Cat ACERT™ technology to effectively control emissions and to deliver maximum fuel efficiency.

Fuel savings also result from the hydraulically driven, electronically controlled cooling fan that conserves fuel by adjusting speed to match cooling demand.

The 340D L’s implement hydraulic system provides constant hydraulic flow through the control valve for quick response and precise controllability, but decreases flow when no hydraulic functions are activated, thus saving fuel and reducing heat. The 340D L has ample hydraulic horsepower to handle a wide range of buckets and work tools, and tool-control options, which further expand 340D L versatility.

For added fuel efficiency, the 340D L has an Economy working mode and uses a regeneration valve in both the boom circuit and stick circuit.

SpecificationS • operating Weight Range: 38 080-38 585kg • power Rating, net (iSo 14396): 209 kW Main Hyd. Flow/Pressure (Std.) 560 L/min)/350 bar • Max. Dig Depth (Reach boom/R3.2DB arm): 7,322mm

haulotte has unveiled a prototype of the new rough-terrain telescopic boom for the ht23RtJ aerial work platform. it was designed by its R&D department in close collaboration with a panel of customers to meet the needs of a range of industries working at heights up to 23m. ideal for many applications including construction work, the shipbuilding industry, chemical and petrochemical industries, and the aviation industry. haulotte claims the machine has unsurpassed performance. the new telescopic boom

ht23RtJ has oscillating axles as standard which gives excellent rough-terrain ability. this equipment also has differential lock, and a narrow chassis which enable it to be operated in the most congested environments. particular attention has been paid to the rigidity of materials.

Full speed ahead For liebherr 65 K Fast-erecting crane Why get it?

Steal a march on competitorS leSS bounce per the ounce

speciFications • Max. hook height: up to 34.6m • hook height at 30° luffed position: up to 51.7m • radius: 28.0 / 35.0 / 40.0m • lifting capacity at 40.0 m radius: 1,400kg • lifting capacity at 35.0 m radius: 1,800kg • lifting capacity at 28.0 m radius: 2,600kg • Maximum lifting capacity: 4,500kg

The Liebherr 65 K fast-erecting crane was presented to the public for the first time at the Intermat 2012 in Paris. The new design of the 65 K is based on the successful concept of the 81 K, which was unveiled two years ago, and now provides a whole range of optimized and further developed functions. This means that the new fast-erecting crane sets new standards in the 65-mt class when it comes to capacity, operation and safety on the construction site.

With a maximum lifting capacity of 1,400 kg at a radius of 40.0 metres, the 65 K provides absolute top values in its size class. As with the larger 81 K, all loads are moved using the pure two-fall operation, SPEED2LIFT. No re-reeving, no time lost, and maximum load handling on site – unique achieve-ments in this crane class. Another excellent performance value is the maximum lifting capacity of 4,500 kg.

New solutions for the transport of the crane also make it possible for the complete 65 K, including its ballast, to be transported to the site with

just two trucks. In comparison with predecessor models, the transport dimensions have also been perceptibly improved. The transport length, reduced to less than 14.5 metres, and the smaller wheel gauge of 6 metres, improve the manoeuvrability of the crane when being transported, which means that the 65 K can be moved into position with no problem at all, even in the most restricted spaces between buildings. Thanks to the design layout of the superstructure, with an extremely short overlap, the 65 K can also be erected very close to a building.

Other top values in this crane class are the low support width, of 4.2 m x 4.2 m, and the slewing radius optimized to 2.55 m.

This provides the new 65 K with particular advan-tages in densely built areas and restricted spatial situations. the assembly handling is supported by the semi-automatic interlock between the tower and the slewing platform by means of the quick-connection facility, and by the reliable erection kinematics, which allow for very high air assembly, even over large

obstacles. The jib tie bars ensure safe and reliable handling, and the semi-automatic ballasting device, in combination with the self-centring ballast slabs, allow for ballasting to be carried out extremely rapidly without the need for an additional crane.

A modern PLC control system provides a whole range of possibilities for safe assembly and economical operation. For first-time assembly, the simple scaling system of the crane, with only one weight, and the LCD graphics display, make rapid and safe setting up and adjustment of the crane even easier. Other advantages when it comes to safety are the optionally available operating-range limiting system (ABB), and the LMB loadmoment limiting system. In the operation mode all the status information is represented on the LCD display, in an easy overview with pictograms.

The new 65 K makes use of the successful drive and control technology which Liebherr first introduced on the 81 K fasterecting crane, and which had previously only been used on top-slewing models.

atlas copco launches Qac 1250, a poWerFul neW generator Why get it? extra power at Qac1000 Size 25% more power on previouS modelS Atlas Copco has added the new QAC1250, its first 1MW generating unit, to the current QAC range in response to interest from the rental and power generation markets.

“This new model is the realization of the long held dream of our loyal QAC users.

They’ve been asking for a 1MW unit in the same box as the well-known and successful Atlas Copco QAC 1000 Model. We’ve developed this unit based on their input,” says Júlio Tomé, Product Manager. “The footprint and dimensions are the same, but there’s 25% more power in the box!”

Júlio Tomé explains why this unit is in such demand. “The standard model is fully equipped and comes with the most common features normally seen as options such as the Qc4002

controller for paralleling, dual frequency, coolant heater, battery charger, automatic fuel transfer system, air inlet shut down valve, spark arrestor, as well as heavy-duty protection for the engine, alternator and electrical system.

Because of its versatility, it can be used on nearly any type of application, making it suitable for the rental industry.

One common application is where it can be used as a temporary power supply to industrial plants, and the 1MW is right in-line with the nominal power of transformers. It is also excellent for events, temporary power generation in remote locations, construction sites, mining, refineries, heavy-duty standby power and much more.”

The new QAC 1250 is a dual frequency unit delivering 1250 kVA / 1000 kW of prime power at 50 Hz and 1450kVA / 1150kW at 60Hz. The engine choice is the KTA50 from CUMMINS, coupled with a Leroy Somer alternator.

speciFications • Max. operating mass dual frequency unit delivering 1250 kVA / • engine: Cummins • alternator: Leroy Somer • container length: 20ft • skin-type: Double skinned design

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New Products

Jcb 8018cTS miNi SeTS beNcHmArK for power ANd producTiviTy

A Tier 4 from New HollANd Kobelco wHy geT iT? More fuel savings and productivity with the high-efficiency hydraulics and new eco working Mode ultra quiet operation with the unique indr cooling systeM: just 93dB aMBient noise New Holland chose the Intermat show to preview its E140C SR crawler excavator, which will be available in the market later in the year. This 13-ton, short radius excavator complies with Tier 4 interim emissions regulations and features New Holland Kobelco’s unique iNDr system. The quietest in the industry, this short radius model is ideal for the urban jobsite:\ The E140C SR, which replaces the E135B SR, runs a 99hp engine like its predecessor and meets the strict Tier 4 interim emissions standards with New Holland’s Cooled Exhaust Gas Recirculation (CEGR) technology.

The E140C SR features New Holland’s intelligent hydraulic system, which puts the operator in full control of the machine’s efficiency. The Hydrotonic combines highly advanced electronic technology with a sophisticated hydraulic system to maximise performance according to the task being performed.

The high efficiency hydraulic system ensures 100 percent pump utilisation in all applications and the hydraulic design minimises friction losses and pressure drops, adding to the machine’s fuel economy.

The Advanced Electronic Processor (A.E.P.) has been upgraded with the addition of a new ECO

wHy geT iT? Massive load increase of 52% 11 increase to dig depth

working mode, which optimises fuel consumption while maintaining top performance.

The new multifunction monitor enables the operator to control the machine’s efficiency at all times: they can keep track of hourly consumption with the fuel economy meter, while the ECO Icon tells them when the machine is operating most efficiently.

The E140C SR features New Holland Kobelco’s revolutionary Integrated Noise and Dust Reduction (iNDr) cooling system, which minimises noise, optimises cooling and maximises particulate filtration. The engine is placed inside a single duct connecting the air intake to the exhaust outlet. The iNDr system manages effectively incoming and outgoing air, funneling it up and away from the excavator, so that the machine runs cleaner, quieter and more efficiently.

SpecificATioNS • operating weight (mono boom and blade): 15200 kg • Net flywheel power: 74 kW • Tier4 interim emissions technology: CEGR + DPF • external guaranteed sound level: LwA 93 dB(A)

LiDAT: CompLeTe VehiCLe pArk AnD FLeeT mAnAgemenT For Liebherr CrAnes 2012 marks the introduction of LiDAT by Liebherr, the data transfer and location system for construction cranes with an even wider range of service capabilities. The new LiDAT will be presented to the public for the first time at the Intermat 2012. Using a common platform, this system allows for a large machine park of Liebherr construction

equipment to be managed, as well as machines from other manufacturers.

This means that LiDAT allows for universal fleet management all from one source.

Based on the very latest communi-cations technology, information is delivered about the loca-tion and the operation of the machines, and that means effi-cient administration, optimum assignment planning, and remote monitoring as well.

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

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Jcb has launched a new 801 mini excavator at intermat 2012 - a machine that will offer customers more than 30 improvements for reduced cost of ownership, greater productivity, safety and comfort.

The new 8018cTS, which goes into production in the summer, will compete in the 1.5 tonne sector and will feature: a 52% increase in load holding capacity with improved lift capacity while maintaining overall class leading stability, an 11% increase in dig depth, a new style fabricated box boom for a more robust appearance, increased dump height and reach, reduced front swing radius, new dozer design with fold-out dozer extensions, upgraded hydraulics for greater controllability, improved service access.

Jcb’s chief innovation officer Tim burnhope said: “This

new machine has been developed after extensive consultation with our customers, dealers and end users. we have made more than 30 detailed improvements which will mean lower operating costs and enhanced productivity, comfort and safety. ” The new 8018cTS features a new style fabricated box boom which gives the machine a rugged and robust appearance. its slimline construction also gives excellent visibility down the trench. All the dig end hoses are routed through the inside of the boom offering excellent protection when digging narrow trenches. The dig end performance is further enhanced as the dump height increases by 52mm, giving a load over height of 2.68m.

An increase in reach of 138mm has also been achieved.

SpecificATioNS • load holding capacity: Up by 52%.

• boom ram diameter: 55-65mm • dig depth: 2.48m • dump Height: 2.68m • reach: 138mm • ground level reach:4.16m • engine: 14.2kW Perkins engine

Built to perform Grove mobile telescopic cranes Grove all-terrain, rough-terrain and truck cranes are long-lasting and hard-working. High performance features help execute even the most challenging lifting jobs with strength, precision and control.

Our cranes offer the versatility to tackle any project, with capacities ranging from 8t to 450t.

Grove cranes range in capacity

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Contact your dealer or visit www.manitowoc.com/cranesdealer

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Get in touch

Toll-Free 800 166 PEAX (7329) KSA A branch of Saudi Diesel Equipment Co. Ltd. www.peax.com info@peax.com

Sector Analysis

S

The big roll-out With the region experiencing an infrastructure boom, CMME presses the industry on the best Roller technology available for road, rail and infrastructure construction.

T

he big economic crunch over the past decade has seen a shift in emphasis from building to infrastructure construction, especially in the emerging markets. Where once the number of tower cranes were an indication of the development of a city or a country, it is now arguably convoys of road construction equipment. And sitting proudly among the asphalt pavers and graders, is the humble roller.

Whether it’s the wealthy Gulf states, Iraq or the sporadically developing Northern Africa countries, building roads (and airports) is the only way into town if the region wants long term prosperity.

Take Erbil in Northern Iraq as an example.

The country is desperate to speed on with its rehabilitation programme, but it is struggling to

even pay for the cranes needed to breakdown the concrete blast walls that are scattered around its cities. However it is Erbil, not the oil and gas rich cities in the south that is able to attract international corporations such as Scania and Volvo to put down roots. The road links out of the country are bringing in wealth and even help forge solid trade ties with its estranged neighbour Iran.

Sayid Azim Husseini, consul general of the Islamic Republic of Iran in the Kurdistan Region’s capital city, Erbil, claims the volume of trade between the two countries is officially $7 billion, but we believe the actual number in general is more than $10 billion, out of which 70 percent is with Kurdistan Region.

“What is promising is that our trade and political ties improve on a daily basis, and especially the

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Sector Analysis

Types of rollers The type of roller that is required for an application usually depends on the type of materials being used, their moisture and how much weight or pressure is required to compact them.

STaTic WeighT RolleRS/ SmooTh Wheel RolleR

This type of roller has a single axle roller with a smooth steel cylinder that is “ballasted with sand or water to increase its self-weight”. The roller compacts the materials on the ground by pushing the soil up in the direction of the movement. In self-propelled machineries, the soil encounters less disturbance and is usually more stable than if it is “pulled”.

ThRee-Wheeled RolleR

The three-wheeled roller is best for compacting bituminous material in thin layers, leaving below 164 yards (150

m) unstable. It has a wide roller in the front of the machine and two narrower rollers in the rear. Most of these types focus on steering the front drum and have drives located in the back rollers.

It is most effective for compacting bituminous materials on road surfaces and is effective because of its ability to cover a large surface area of ground.

Ridge formations are avoided by the overlapping of the rear rollers with the front one.

RubbeR TiRe RolleR

A self-propelling machine, the rubbertire roller is best for compacting large fills and working on loamy soil.

Rolling meThod

This technique is unique to avoid unstable foundations when rollers are compacting around curves and bends of the site. The wheels have couplings

and a swivel that enable them to move the weight onto each tire. The use of overlapping tires ensure that the full area is covered. Formations for this type of vehicle are usually arranged with seven tires (three in the front and four in the back), or nine tires (four in the front and five in the back).

The tires in the front cover the areas around turns that are most affected by ridges. This method is highly beneficial to workers because they allow them to alter the weight of the rollers, use a designated set of wheels with the added option of changing the tire width and manipulating the covered area by changing tire pressures.

foot can be used on different types of soils and have different shapes of feet to allow for the best compaction according to soil type. It’s best used with cohesive materials and covers small surface areas, compensating the small size for high pressure. Once compaction is acheived, it is referred to as “walking out of the fill”.[4]

Sheep’S FooT RolleR

Smooth drum rollers are used to compact sand, gravel, and asphalt with vibration. They are used mostly in roadbuilding applications.

The sheep’s foot roller, given the name after an observer commented that the pattern left behind looked like a herd of sheep had passed by. The sheep’s

friendly relationship between the people from both sides is very strong. Approximately 2 million people travel between the two countries annually,” Husseini told the Hawler Newspaper.

Rollers are now being fast tracked into the Middle East. Shantui recently declared that the machine was an “important tool for mountain push to open up foreign markets” and tested its newly launched SR14M Roller with the region in mind.

Chenwen Ji, general manager of the Road Machinery Division, Technology Department Shi Huimin, said the company, which is keen to grab market share in earthmoving equipment here, had project staff working overtime to get it out into the market. This, he said, meant, “greatly reducing the product development cycle to ensure the smooth off the assembly line of new products.”

French company Fayat announced in April that

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ToW behind RolleR

Tow behind rollers are designed to be pulled behind a tractor or some other machine. They can be either smooth drum or padfoot.

VibRaToRy SmooTh dRum RolleR

Source: www.ritchiewiki.com

its road building machines - including rollers, as well as paver finishers, planers, stabilisers and light equipment - will go under one global brand, Bomag.

Bomag is one of the best-known brands in the region and has launched one of the most advanced tandem vibratory roller, the Bomag BW138AD-5, which features dual travel levers, a foldable ROPS and larger drum diameter for “enhanced asphalt compaction performance”.

According to Jörg Unger, President of BOMAG, “we think it is more than likely that the market in Western Europe will remain at the previous year’s level. In contrast, the market in Central and East Asia will grow slightly, as will many other nonEuropean markets.

He added: “In the Middle East, Africa and Asia, the market will continue to grow, although the market has not reached the levels before the economic crisis. In China in particular, which is a significant BOMAG market, the company has paved the way for growth by acquiring its dealer BOMA and introducing new products at its plant in Shanghai.”

At the end of last year, Middle East customers were shown an impressive line-up of innovations and technologies at a specially organised launch event. Featuring were its new series of small tandem rollers, the world première of the 4.5t BW 138 AD-5 tandem roller, the new BF 800 finisher, and the BCM-Net, for “online” networking of a construction site by means of WLAN connection between several tandem rollers.

LiuGong Machinery unveiled four new dualamplitude rollers at INTERMAT 2012 in April. The new line consists of three tandem hydrostatic models ranging from 2,450 kg to 2,850 kg – and a new 11,300 kg hydrostatic single-drum machine.

LiuGong is fast becoming a global leader in roller design and manufacturing, and these new machines demonstrate how serious they are about the market. The company’s approach is to build highly efficient and reliable machines that are easy to service and own. As a result, LiuGong now ranks as the second largest exporter of rollers from China.

The models 6024, 6026 and 6028 tandems feature a new high-frequency roller technology that delivers high-density compaction and a consistently flat and even surface in the fewest passes possible. With their dual amplitude settings and 63 to 52 Hz vibration frequency range, the machines cover a broad range of material consistencies and applications.

Working widths range from 1,000 mm for the model 6024 to 1,250 mm for the model 6028.

The high-output Kubota diesel engines provide solid, reliable power and hydraulic flow with low fuel consumption. An advanced cooling system provides exceptional control over hydraulic fluid temperature, improving reliability and extending component life. The engines meet some of the toughest standards for noise and emissions and satisfy current EU IIIB requirements.

The tandems feature an advanced new vibration ball-bearing system that maximizes lubrication and prevents fluid leaks for improved drum performance and reliability.

Large capacity water and diesel tanks extend the time between fills. The front-mounted water tank improves machine balance, and the flow is fully adjustable to match compaction needs.

Mud scrapers– mounted on both drums – are fully adjustable and made of tough, damage-resistant polyurethane.

The machine features a unique “no moving parts” vibration exciter that totally eliminates the possibility of a weight change inside the bearings and connecting shafts. It’s a single part system with a flexible eccentric mass, and it means better performance, reliability and reduced service problems.

The rear-mounted Tier III Cummins diesel engine delivers exceptional power and fuel efficiency and low emissions. Since the radiator is at the rear, positioned behind the operator, it stays cooler and is exposed to less dust, for better performance and extended service intervals.

Dynapac’s assault on the region is coming from the north and has been highly active in Turkey, helping to lay the surface of Ataturk Airport plus projects around the city.

The company says the introduction of its fifth generation of single drum vibratory rollers was enthusiastically received at Intermat. Having begun with the larger CA5000, CA6000 and CA6500 models, the company has now presented its midsize range, CA2500, CA2800, CA3500 and CA4000, and their variants.

The versatile machines represent a minor revolution in terms of serviceability due to their cross-mounted engines. Other time and money saving features are optimized amplitude for superior compaction performance and Active Bouncing Control that prevents damage to the machine and over-compaction.

“In THE MIDDLE EAST, AfrICA AnD ASIA, THE MArKET WILL COnTInUE TO grOW, ALTHOUgH THE MArKET HAS nOT rEACHED THE LEvELS BEfOrE THE ECOnOMIC CrISIS.”

With static linear loads ranging from 25 - 45 kg/cm, the mid-size CA rollers are ideal for compacting a range of materials, from sand and gravel to rockfill. Amplitude of 1.8 - 2 mm for the CA3500 and CA4000 models allows rockfill to be compacted in 1.25 – 1.5 meter layers. The better depth effect results in higher volume capacity and less passes to reach compaction specifications, thus saving fuel and reducing the cost per compacted cubic meter. Environmental impact is also lower. The Dynapac “Silent Weights” eccentric concept Is an option that enhances compaction performance even further.

The new CA rollers are available with Stage IIIA or IIIB engines. The “best-point” fuel saving system minimizes fuel consumption and CO2 emissions by ensuring that the roller does not consume more power than needed at any time.

This, together with higher compaction parameters and other improvements, has resulted in a drastic reduction in fuel consumption compared to the previous generation.

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

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Purchasing

player n Me o i t c ing, so cM u a n a you’re do At A e h e w M m e o r o ec u b ot d bec you Are n ArgAin An en Ab e getting plAces wh At you Ar onfusing c th e b ll n te A n c u cA Auctions to how yo its guide presents . r ction buye better Au

be prepareD Do your research beforehand and make sure that you don’t get involved in a bidding war you or your company can’t afford!

specify Determine the necessary equipment before going to any auction to avoid making an impulse purchase.

make a list it is helpful to make a list of some of the specific requirements needed to ensure that the right type of vehicle is purchases.

Be a better auction buyer Do you have your priorities right when it comes to buying in the aftermarket?

public vs. closeD? When looking for a way to acquire quality used equipment at a reasonable price, it is important to know whether to attend a public or a closed auction. the first event is open and intended for the general public; the latter is only available for registered dealers.

Don’t forget to register prior to bidding, it is necessary to register online or at the dealer’s office. any purchases may need to sign certain documents such as an agreement as well as provide their company’s name, contact details, a photo iD, banking information and either cash or a guarantee letter from a bank or other financial institution. a personal bidding number will be issued to registered buyers along with a catalog and list of items for sale.

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Purchasing

Damage limiTaTion check for any signs of rusting or stains. open the cab door to check the floor and under the seats for any signs of rust. check the engine for signs of water stains; also check around the engine block for any evidence of oil leakage.

Find the oil dipstick and check to see if there is a heavy dirt deposit which could be evidence that the equipment has been sitting for a long time or has not been well-maintained. know Thy buDgeT! The budget for the acquisition should also be predetermined or at lease be sure it is known the amount that a bank is willing to lend for financing a used piece of machinery.

Don’T For geT To re DON’t gO search iNtO the a uctiON ma

chiNery a hall with ND equipm Out DOiNg eNt yOu N great pla research eeD. ONliN ces tO ge ON the ty N up. e resOurc pes Of es such a s ritchie wiki are

make a noTe write down the identification number which is usually located on the windshield on the driver’s side in the lower corner.

invoice me on the date of the sale, each of the vehicles at an equipment auction will be sold to the highest bidder. The buyer will receive an invoice listing all purchases.

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

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make Time allow time to inspect vehicles for any damage or problems before the auction starts, if this is allowed by the auction company.

Dealer Round-Up

sultanate of oMan Al Fairuz Al Hashar Al Taher Group Genserv International Heavy Equipment (IHE)

Find me a dealer!

Oman is one of the GCC’s best kept secrets, CMME takes a look at some of the biggest names in the sultanate.

Al FAiruz Sultanate of Oman Main Brands: Hitachi construction equipment, Mitsubishi forklifts, Sanvik, Shwing, Terex,

www.alfairuzoman.com ContaCt: +968 245 62645

Today, Al Fairuz Trading is considered as one of the largest companies in the trucks and construction

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

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equipment sector in the Sultanate of Oman. The flagship company, Al Fairuz Trading & Contracting was formed in the year 1972 and the group today has a portfolio of companies under its banner.

With over 150 people working for the company across three cities including Head Office Muscat and branches Salalah and Sohar the company is well on its way to expansion. According to the company, Al Fairuz Trading has professional management in place to take care of sales, service and spare parts operations with well experienced hands. Support functions like finance, EDP and administration are also adequately staffed.

Al HAsHAr Sultanate of Oman Main Brands: Tata, UD Trucks, PM Cranes, Tadano, Doosan Infracore

www.alhashargroup.com ContaCt: +968 245 96434

Al Hashar Group, which was formed in the early 1970s is among the top four companies in Oman.

The company, which began from small beginning and went to a large business conglomerate, is a result of commitment and contribution to local business according to the company. Al Hashar also believes that apart from being loyal to customers and providing the highest standards of service and commitment, the Group’s strong alliance with its world class partners over a long period of time has played a vital role in its progress. Al Hashar is the sole distributor in the country for world-renowned medium and heavyduty vehicle brands such as UD Trucks, Tata vehicles, Daewoo (Tata Novus) trucks, Tadano hydraulic cranes and PM truck loader cranes. Al Hashar has also further diversified its business with Doosan Infracore construction equipment and machinery.

owned, these companies represent a workforce in excess of 1,500 employees working in the region.

The company’s machinery and equipment associate company is Oasis Trading & Equipment company, which was established in 1972 in partnership with Al Bahar family of Kuwait. The company holds the sole agency Caterpillar Heavy Machinery and Equipment and is your one-stop-shop for everything Caterpillar.

Its range of equipment is the latest and also claims to have the ‘first pick’ of all new and used machinery. The company also claims to have substantial organisation for marketing and after-sales service covering the territory of the Sultanate of Oman.

InTernATIonAl HeAvy equIpmenT (IHe) Sultanate of Oman Main Brands: Volvo Trucks, Renault Trucks, Leibherr, Putzmiester, Bobcat

Genserv

www.ihe-oman.com ContaCt: +968 24 584 500

Sultanate of Oman Main Brands: Compare, Detroit Diesel, Isuzu Marine Engines, John Deere, Sandvik, Volvo

www.genserv-oman.com ContaCt: +968 24490755

Al TAHer Group Sultanate of Oman Main Brands: Caterpillar equipment

www.altaher.com ContaCt: +968 24 509 000

The various Al Taher companies rank among the leading construction, engineering, trading and real estate companies in the Sultanate of Oman. Privately

Founded in 1982, Genserv rose to become the largest construction equipment dealership in the Oman in a span of 29 years. Today, it is Oman’s leading construction equipment dealer, according to the company. The company started as a spare parts dealer for Detroit Diesel in 1982. It was established in Oman’s capital Muscat as a fully owned subsidiary of Juma Al Majid group. Some of the other brands that were brought to Oman by Genserv includes, Volvo Construction Equipments, Powerscreen, etc. The industrial products handled by the company include bearings, power engines, marine engines, tools and accessories. According to the company, Genserv was a trailblazer. It had no rules and there were many firsts.

There was no way of doing things so there was always an original way of doing things.

IHE has three operational departments, which include Volvo Trucks, Renault Trucks and Interparts. The company’s vision is to be one step ahead of the competition by means of professionalism, business ethics, customer commitment and honesty. IHE says it is committed to meeting and exceeding customers’ needs in the field of trucks, equipment (construction, engineering and industrial) and related spare parts.

According to the company, it continuously works on improving the quality of service it delivers locally to truck owners in Oman.

Customers, located in the interior areas of Oman, are serviced by fully trained personnel and the extensive service network of its sister concern, Zubair Automotive Division, already in place.

IHE also has training facilities, in addition to mobile units capable of providing on-site training to its customers along with having a centrally located warehouse complex where over 40,000 line items are stocked. A state-of-the-art racking system is designed to meet IHE’s need for easy and quick retrieval of any spare part at a moment’s notice.

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

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The Last Word es allege US authoriti ts to Iran that shipmen e products declared th UAE as Made in

elf has found its y n a p m o c E A UA rack down c S U in d e il embro por ter who x -e re il o th n on a sy sanctions. n a Ir d te n u a fl

l e b a l e h t d Rea

s and Custom Immigration S the U of a e , n on di at ar H alleged th anika t, h en ec m ag ials t to er u en A at th’s the m Enforcem ist, last mon e nessmen said th si as es bu ed at ll ed br fi be n a bizarre tw le ti la ce uniden ld be re an event that fell in ubai but wou D b, u e h m t Middle East, co or ld xp wou a major re-e volving claimed ’.

UAE’s role as r associate is or scandal in aj ‘UAE product m a as k y ee din, the othe tr n ar u H s is co to ko e ar ng th M di g the same w usin Accor fe [sic] an accused of eavily l: “So u are sa h sm ai e es em n th si in to l bu en oi S tt aU to wri motor ip synthetic the Associate to illegally sh . safe.” an Ir of the stor y by y g tr n n ri s u ions ve ko co co ar ed e M n rested communicat sanctio An ar ticl that: “Other USA, s said they ar p , ie ed u it ke rt ro li or G po th n ok re fi lo au el so US t of D should Press al oduct labels , the presiden ra otor pr an m fo at ri s ic h sa es w et dr da th ed h n ad ss ag B r of sy discu a fake ned produce ge including e at that h one messa a Russian-ow an aeroplan it free number d w llde to ar a bo d e an h y n re r fo pa m s be co ce st t to offi fo oils, ju California actually wen E, .

A rt ed U in e po ir th rm A te to ta de te Atlan -rou agents , who was en e UAE to cret.” send engine Baghdasarian mpany in th co a Victor ia’s Se g n USA tr ied to si . u n fi an of el Ir d D in se at t cu th en ac an associate to an ag has been Helfin said $850,000 to synthetic oil t th or or s w xp e US ce ls -e fa oi re e g h illegally id that iled to get th lubr icatin osecutors sa e officials fa s to pr th l od t . ra rt go bu de g po E, in Fe A ex rt S U e U in the s of th lly expo al the detail ic t his ot only illega ve on n ou re tr of ab ec s to el ts y ge n en ar ed pa ag ac ch com Federal agents pl to s g ou in ci s ly is er so sp in al su ta 11 con Iran but The still shipment of the past. an er in ed sm h s ac es rt ce n tr fu ti si as a ac bu w to pr e e trade aim th trackers d that on author ities cl AE and foun U el s e ab on th -l ti r re fo ga to d The Federal le s al boun rtner ns on e most seriou UAE-based pa ion restrictio an. One of th of using his Ir ct e lied when n h to sa at t n th ve is m rian rian circu st Baghdasa s. Baghdasa n shipments to ai ag or ral auth itie an. ibited de Ir Fe oh e e to pr th s th is rt of e to e po ad US ex w, tr that on question US federal la deral agents e for According to sion from th rtedly told fe is po a middle man rm re as pe w l en ia ec sm sp es t n si ou in h bu sed of ly g to Iran wit unidentified s but is accu ct u od pr t. s S en y’ U n m associate was govern alf of the his compa that anot her g on the beh ow n ti kn ce ac at he ’t en ts dn id n di ev ge A that he ong the her alleged th ction of said that am an. It is furt t Ir lle the en in co of m a d e e rn se dg ar ve ba le go hdasarian his know ag ed B al t of st ve n re ai ly ag s on sines US Depar tmen compiled nidentified bu ate af ter the “u in ci o so ph tw el as D om is fr h emails ended mmerce susp Co Re-expoRt hub ”. . es es at eg ci il asso g pr iv at one of USA’s tradin sarian Dubai Chamber of Commerce They claim th guilty Baghda d es n u at fo ci If so as ’s in s an ri ar and Industry said exports and Baghdasa p to 20 ye d in Iran could face u se was ba g t n en ri re-exports by its members rose 7.8 ag ea h itial was an pr ison. An in of d esentative pr en per cent in value to Dh63.5 billion in e re e th th at d an in Georgia at d el th h y n he pa w m la the first quarter of 2012 compared to deral of a UAE co and under Fe ucts to ay od M uth pr n So fi Dh58.9 billion in the same quarter last el to D n traditio shipped sociate is could face ex as year.

While the monthly March exports er h ot n A Iran.

Carolina. an unnamed and re-exports was Dh23 billion and claimed to be UAE. e th in February was lowest with a value d se operator ba t, John of Dh17.6 billion.

In an affidavi

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