ISSUE 53 16 MARCH 20
PLUs
RAW PoWER lySiS NE W S & A N A G k i T SP o T T iN E S NE W RElE A S RD T HE l A S T Wo oRE A ND MUCH M PoWER PUeMtPeERS
concr eet PUmPs m ions exPectat ors Generat
T X E N N o i T A R E GEN f the o s um d r t n e c e p s two r owe p y r a r o temp
2
CONTENTS MARCH 2016 8_News The latest news from across the region and further afield.
20_NexT geNeRaTioN With low costs and wider options driving the temporary power sector, two manufacturers tell us how they are facing the times.
28_peRfoRmaNce uNdeR pRessuRe
20
Doosan Portable Power has the region covered with its small
16 D IN Sp oT Tec Fr aNgoeseto work 8
compressors, portable power options and light towers.
32_poweR pumpeRs Makers of truck mounted concrete pumps discuss the options and new technologies available in their field.
r e w o p raw 38_ New R The latest
e l e a se s N
inery.
ction mach
f constru the world o m o fr s se relea
e 41 _Top T
16
T 17 Potain MD de ic Chateau at the icon ce. n ra F castle in Chambord
t. fitable flee
ning a pro
n Tips for ru
4
ul loNg ha e h T N ies. o g ew strateg 4_ beTTiN ead with n
on truck Constructi
makers loo
k ah
32
s 50 lie TuRN Jubilee. R a h c l e en 48_gR av tes its Gold uler celebra ic Volvo’s art
8
ulated ha
28
48
44
IVECO TRIUMPHS AT THE DAKAR 2016
3 IVECO in the top 5 Gerard de Rooy, the leader of the Petronas De Rooy Iveco team, is overall winner.
RSTAR
WE ECO PO
IV
#501
OOY D DE R GERAR rrallardona To Moisés odewald Darek R
FINAL RANKING: POS. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12.
DRIVER
De Rooy Mardeev Villag ra Stacey Van Genugten De Baar Nikolaev Valtr Ver sluis Pep Vila Roca Ardavichus Van den Heuvel
1st VEHICLE
Iveco Powerstar Kamaz Iveco Powerstar MAN Iveco Trakker Renault Trucks Kamaz Tatra MAN Iveco Trakker Tatra Scania
6 R #51 AKKE ENUGTEN R T O NG IVEC ON VA
TIME 44:42:03 45:52:30 46:22:58 47:05:04 47:13:02 47:46:10 48:21:26 48:36:33 48:39:55 49:37:07 49:43:09 49:57:44
ANT
impt van L Anton d r e an E Peter v
IVECO PO
WERSTA
FEDERIC
OV
R #514
ILLAGRA Jorge Pérez Companc Andrés M emi
3rd
Thanks to: , Xavi Colomé Roqueta and Marc Torres Sala , the fast service truck who finished 10th Pep Vila Roca Aleš Loprais , Ferrán Marco Alcayna and Bernard der Kinderen , who unfortunately abandoned during stage 5 The FPT team in Arbon who specially prepared Iveco’s Cursor 13 engines manufactured in Bourbon Lancy plant The whole team, sponsors, friends and supporters.
“I wish to dedicate our victory to my former co-pilot Jurgen Damen
who accidentally passed away last year” Gerard De Rooy
AFTER MAGELYS, COACH OF THE YEAR 2016 AND EUROCARGO, TRUCK OF THE YEAR 2016 IVECO TRIUMPHS AT THE DAKAR 2016, THE WORLD’S TOUGHEST RALLY.
5th
4
EDITORIAL M ARCH 2016
GROUP FOUNDER DOMINIC DE SOUSA GROUP CEO NADEEM HOOD
PUBLISHING DIRECTOR RAZ ISLAM raz.islam@cpimediagroup.com +971 4 375 5471 EDITORIAL DIRECTOR VIJAYA CHERIAN vijaya.cherian@cpimediagroup.com +971 4 375 5713
EDITORIAL EDITOR ANIRBAN BAGCHI
The power of opTions
anirban.bagchi@cpimediagroup.com +971 4 375 5715 SUB EDITOR AELRED DOYLE aelred.doyle@cpimediagroup.com ADVERTISING & MARKETING COMMERCIAL DIRECTOR
The Middle East is always hungry for more. More investment, more projects, more infrastructure, more machinery, more buildings. And even in the midst of what everyone agrees is a downturn, there is an unshakeable optimism in the air that the oil price rise is just around the corner; that fuelled by must-deliver projects such as Dubai’s Expo 2020 and Qatar’s 2022 World Cup, there are more good things in store a few months down the line. Many of those good things will need more of another commodity – power. Of the electric kind. And this is one area in which the Middle East does actually need more. According to a recent study by MEED Insights, the demand for electricity in the Middle East will rise 34% by 2020, requiring the region’s generation capacity to almost double to 420,335 megawatts within four years, from the present capacity of 276,117MW. This estimated 34% increase in demand provides opportunities that suppliers in the power sector can benefit from. And since it is slightly far-fetched at this stage to imagine a doubling of installed capacity within four years, a portion of that demand will have to be met by uninstalled capacity – especially at the new construction sites in the expanding urban landscape of the region, which can be expected to remain off-grid for some time. Enter temporary power solutions. At the Middle East Electricity show 2016, providers of temporary power from around the
world were out en masse, rolling out new releases of generator sets and machines to grab a piece of the estimated $416 billion investment pie that is required to meet the growing consumption requirements of the MENA region. The options that this gives those shopping for temporary power solutions is immense. At CMME, we spoke with both an established European brand that has successfully positioned itself as a desired partner in the region and a relatively budget-friendly Chinese entrant, to get two sides of the story. Elsewhere in the issue, concrete pumpers reveal the details of their vital role in the construction process, and the construction and heavy trucks sector uses new strategies and products to adjust to the slowdown. Everyone agrees that the road back to better times is a long one, but the journey can be equally rewarding in terms of the knowledge that can be acquired. At CMME, we hope to continue being your curator in that process.
MICHAEL STANSFIELD michael.stansfield@cpimediagroup.com +971 4 375 5497 MARKETING MANAGER LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498
DESIGN ART DIRECTOR SIMON COBON simon.cobon@cpimediagroup.com
CIRCULATION & PRODUCTION DISTRIBUTION MANAGER SUNIL KUMAR sunil.kumar@cpimediagroup.com +971 4 375 5476 PRODUCTION MANAGER VIpIN V. VIJAY vipin.vijay@cpimediagroup.com +971 4 375 5713
DIGITAL WEB DEvELOPER MOHAMMAD AwAIS PUbLIShED by
Registered at IMpZ pO Box 13700 Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com
Anirban Bagchi Editor, CMME
PRINTED by printwell printing press LLC © Copyright 2016 CpI. All rights reserved. while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
AFGHANISTAN FAMCO (Al-Futtaim Auto & Machinery Co. LLC) + 971 4 213 5100 (UAE) famco@alf uttaim.ae BAHRAIN FAMCO (Al-Futtaim Auto & Machinery Company) + 973 1783 0226 famco.bahrain@alfuttaim.ae IRAQ Sardar Automobile and Machinery Trading Co. + 964 750 344 4701 ihsan@sardarmachinery.com JORDAN Jamil Odeh and Sons Co. (JOSC) +962 6 4160409 info@jamilodeh.com KUWAIT Al-Zabin International Group Co. For Heavy Equipment + 965 2433 4721 alzabin@alzabinkuwait.com
keeps paving for longer
LEBANON AMTRAC (Abdelmassih Trading Company) + 961 3 425625 michel@amtrac-lb.com OMAN GENSERV (General Engineering Services Est) + 968 244 90755 sales@genserv-oman.com PAKISTAN VPL Limited + 92 42 111 875 875 uzair.shahid @panasiangroup.com QATAR Arabian Agencies Company WLL + 974 44 50 0925 araco@araco.com.qa SAUDI ARABIA FAMCO (Al-Futtaim Auto & Machinery Co. LLC) 800 124 4414 famco@alfuttaim.sa SYRIA Nassib Saad Est. Trading & Import + 963 11 222 5432 i.saad@saad-syria.com TURKEY Ascendum Makina + 90 216 581 80 00 info@ascturk.com UAE FAMCO (Al-Futtaim Auto & Machinery Co. LLC) 800 FAMCO (32626) famco@alfuttaim.ae YEMEN Elaghil Trading Co. + 967 1 207 470 elaghil@y.net.ye
In a recent side-by-side comparison against competitor pavers, the Volvo P6820C tracked paver achieved comparative fuel savings of up to 30 %. This remarkable statistic is achieved thanks to the P6820C’s Smart Power function, which reduces the engine’s maximum rpm from 2,000 to 1,600 rpm without sacrificing power, performance or quality. So the P6820C can keep paving almost twice as long using the same amount of fuel. Noise and vibration are also reduced, making for an improved Munich 11-17 April
operator environment – and making the P6820C better for the environment all round.
Hall C4:327 Outdoors: FM510
Building Tomorrow.
volvoce.com
6
ONLINE M ARCH 2016
L A U N C H PA R T N E R
CONSTRUCTION MACHINERY ME’s home on the web MOST POPULAR
1
EDITOR'S CHOICE
READERS' COMMENTS
Saudi strike: 1,000 workers ‘protest over unpaid wages’
Construction workers at Jeddah company unpaid for six months – report
2
Half of Dubai 2015
PHOTO GALLERIES
Work underWay at dubai’s iCd brookfield PlaCe
delayed: ValuStrat
First major project approved at the Dubai International Financial Centre (DIFC) since 2008.
Dubai property prices stopped
See photo galleries at: meconstructionnews.com/photos
property projects
falling in the last quarter of 2015, and may plateau this year
3
Robert Allan, via email
Tough times ahead: Gulf construction READER POLL
outlook for 2016
How stringent should the UAE’s new fire safety code should be?
Low oil prices and challenging economic conditions to weigh heavily on the industry
4
The construction sector is heading south, apparently (“Tough times ahead: Gulf construction outlook for 2016”). But the fact remains that, despite the low oil prices and economic jitters, a mass of master-planned projects are still going ahead in the region. Take the new developments around the Dubai Water Canal and plans for some of the ‘mega events’ in the region. Maybe time for less talk of doom and gloom?
Mecca crane collapse: ‘40 to stand trial’ – report
Accused include 30 staff
VIDEO
at construction firm
star Wars building WraP at aldar’s abu dhabi hQ
5
Sheikh Mohammed gives
Aldar and twofour54 partnered to create a giant Star Wars-themed installation at the Abu Dhabi developer’s HQ.
green light to project
See videos at: meconstructionnews.com/videos
Emaar to build new tower at Dubai Creek
51%
36%
8%
5%
Very: Offending materials manufacturers need to be prosecuted
Only specific clauses need to be added regarding certain materials
A moderate overhaul of existing regulations is needed
The current regulations are adequate
Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com
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S W NE 8
Counterfeiting
InterpIpe fIghts fakes wIth trademark regIstratIon In Uae
ojects, r p w e n , offIces w e n , s e hIn aroUnd k o new mac o l e tIves – w onth a m I t s I I n h I t w ne at’s new h w t a n the regIo NEw PlANT APP froM HoNEywEll Honeywell Process Solutions has
Ukrainian steel pipe manufacturer
launched a new
Interpipe has officially registered
app providing
its trademark with the UAE Ministry
immediate
of Economy, citing the need
notifications and
to combat the emergence of a
real-time plant
counterfeit steel pipe industry
performance data
in the UAE and the region.
and analytics
The company said in a press
direct to plant
release that counterfeiting of its
managers’
products is a significant challenge
smartphones.
and the registration represents
The app
the fake products that are eroding
metrics and
its brand value. The GCC region
tools to resolve
accounts for over 16% of Interpipe’s
issues directly to
global sales, and the company has
mobile devices,
supplied steel pipes to the UAE
improving
market for more than 10 years.
efficiency and
Himoinsa rallies behind electric car at Dakar The first 100% electric car to enter the world-famous Dakar rally was powered up by Spanish generator giant Himoinsa’s sets at its stopping points. The company was the official supplier of generator sets for the charging points of the Acciona EcoPowered vehicle during Dakar 2016, providing three HFW-200 T5 generators with FPT engines for the charging points. The three generator sets were installed on three support trucks that accompanied the electric car in the rally. At the start, midway point and end of each stage, the car charged its batteries at charging points where Himoinsa generators were the only power source
for the only fully electric car in the rally. The Acciona EcoPowered vehicle would have been the first non-fossil fuel car to finish the rally, had it not been forced to withdraw in Stage 10 after the organisers announced it had arrived late to the start of Special Stage 11. Driver Ariel Jatón and the Acciona EcoPowered Project team said they chose Himoinsa generators for their reliability. “The race covers around 10,000km. Stopping points are camps in remote places with no connection to the electrical grid, making generators essential,” said Francisco Gracia, executive director of Himoinsa.
the first step in its fight against
brings relevant
According to Andrey Burtsev,
safety. It provides
Interpipe’s vice president of
timely alerts
Pipe Sales in the Middle East and
from multiple
North Africa, approximately every
data sources and
third building in the UAE uses
connectivity
the company’s products, and this
tools to drive
popularity has given rise to a steady
collaboration.
business in fake pipes passing
“Honeywell Pulse allows
themselves off as Interpipe products. “The depth of the counterfeit
performance
steel pipes industry in the UAE
monitoring
is unquantified, but its existence
remotely for faster
presents a significant challenge for
response times,”
us,” Burtsev said. The counterfeit
said Evangelos
products adversely affect
Alepochoritis,
Interpipe’s reputation for quality
Honeywell’s sales
“because uncertified steel cannot
director for the
be guaranteed for its integrity,
Middle East.
strength or durability”, he said. “Interpipe products are well known in the UAE, and officially registering our trademark is a step towards introducing an additional – and necessary – line of defence against counterfeiting,” Burtsev said.
For applications in construction, roads, utilities, rental, quarrying and many other industries, the high performance, durability and reliability of portable power equipment is key to boosting productivity on site. At Doosan Portable Power, our compressors, generators and lighting systems are designed and rigorously tested to ensure they give outstanding operation on the toughest sites and in the most extreme conditions around the world. Our ingenuity, innovation and steadfast customer service make us the coolest, hottest name in portable power today.
POWERING YOUR PRODUCTIVITY
doosanportablepower.eu
10
neWS rounD-uP M ARCH 2016
neW launCh
al-fUttaIm laUnches fIre safety dIvIsIon
Al Maysam hosts Sany Qatari customer evening
CAT ExITS oNroAd TrUCkS Caterpillar is stopping production of on-road dump trucks and exiting the segment, citing a slump in
Al-futtaim Engineering has launched
demand. The US
a new business division for fire
company has sold
safety that will offer installation,
on-road dump
maintenance and design services for
trucks since
fire protection and detection systems.
2011 to offer
Mobile and rough terrain cranes from Chinese heavy machinery company Sany were showcased to contractors, logistics and rental companies in Doha recently, by the company’s dealer in Qatar, Al Maysan Heavy Equipment. Attending the customer event at the Regency Halls in Doha, where the company honoured its clients and presented appreciation awards to long-standing customers, were Mohamed Jaidah, group executive director
of Jaidah Group; Ayman Ahmed, managing director of Jaidah Equipment; Wang Fengkai, GM of Sany Middle East; Hazem Kenawy, service manager of Al Maysan Heavy Equipment; and David Xu, chief representative of Sany Group in Qatar. Mohamed Jaidah said: “Jaidah Equipment has a history of longstanding relationships with major international manufacturers, making us perfectly suited to satisfy the high equipment
CNH r al agriCult u big at iN br a Nds w2016 FiM a for on awards
sw rial’s brand the CNH Indust l sector at agricultura e th in ery in ce h excellen ltural Mac nal Agricu io e IH at as rn C te e 39th In Spain. Th Zaragoza, in nical d h el ec h T Fair 2016 the 2016 ed iv ce re r ctivity X tracto sing produ Optum CV d for increa ar aw ng ci n u o d ti Innova while re nal safety io at p d u an cc ll o and New Ho tal impact. en m n n o ro ti vi en Innova e Technical received th d CX6 an 5 its CX award for mbines. range of co
demand in Qatar due to the construction boom driven by Qatar National Vision 2030. We are confident Sany’s quality and our services will ensure we continue to increase market share.” Ayman Ahmed added: “We want to assure Sany customers we’ve taken new initiatives to enhance after-sales support and business relations.” David Xu said the wide range of Sany crane models “have two things in common: versatility and practicality”.
Named Control and life Safety,
homogenised
the new division is approved by the
fleet solutions
dubai Civil defence and will design,
to its excavator
engineer, supply, install, commission,
and bulldozer
operate and maintain firefighting
customers. But
systems, emergency lighting services,
despite its strong
gas fire suppression systems, fire
brand, sales had
alarms, BMS, lighting controls, access
stagnated at an
controls and CCTV systems for
average of 1000
commercial, residential, industrial,
units annually,
retail, hospitality and infrastructure
falling 15%
projects, said dawood Bin ozair,
further in 2015,
senior managing director, Al-futtaim
the third straight
Engineering & Technologies.
year of decline.
“The division also complies with international fire and safety codes including National fire Protection Association, the UAE fire code and loss Prevention Certification Board, and also incorporates other standards and codes of practice,” he added.
11
Volvo breakers big in Qatar market
Qatar has emerged as the largest market in the entire EMEA region for Volvo Construction Equipment’s hydraulic breakers, two years after the range’s launch in the Arabian Gulf country, which is well-known for its tough ground conditions
of abrasive limestone. The full line of Volvo hydraulic breakers has been steadily gaining in popularity in Qatar since its launch of compact excavators and skid steer loaders in early 2013, and of wheeled and crawler excavators in the
summer of 2014. Qatar is served by authorised Volvo dealer ARACO, which has also introduced bundled deals of excavators and breakers together, increasing convenience and costeffectiveness for customers. Volvo CE delivers its breakers
TrIMBlE
regional exPanSion
pm groUp sets Up mIddle east sUbsIdIary at jebel alI
lAUNCHES NEw CoNTrol SySTEM Data solutions
ready to use with hydraulic hoses, breaker brackets, maintenance tools, chisel, manuals and the breaker itself packed in a single crate, whereas brackets and hoses often have to be arranged locally for other suppliers. Jonas Staaf, director of Customer Services and Solutions at Volvo CE in Sales Region EMEA, said: “At Volvo we have focused on designing and building productive and reliable breakers with good uptime that can also be considered cost-effective in the global market.” “Using a breaker that has been specifically designed for Volvo equipment ensures that both the breaker and the machine operate to their maximum potential.”
dUBAI To HoST CrANE CoNfErENCE Dubai will host the first International Cranes and Transport Middle East Conference on December 8 this year at the Conrad Dubai Hotel, the event’s organisers have announced. The free-entry, oneday conference is part of a series of prestigious cranes and transport conferences held globally.
Moroccan king opens vocational academy
provider Trimble Italian manufacturer of truck-mounted cranes
to the Middle East customer. luigi fucili, CEo of PM
has launched its updated GCS900
and aerial platforms PM
Group, Italy, said: “The
Grade Control
Group has announced the
Middle East market is
System, which has
opening of a new subsidiary
extremely dynamic and
now widened its
in dubai’s Jebel Ali free
presents a strong demand
support to include
Zone (JAfZA), which is
for lifting solutions
construction
in line with its expansion
equipment, mainly due
equipment such as
plans in the Middle East.
to the growth of many
wheel loaders.
sectors, especially the
The system
construction industry.
includes a new
The company, a whollyowned subsidiary of Manitex International,
“for this reason, a reliable
3D configuration
already directly operates
on-site based reference
for wheel loaders,
in the Middle East and
point to better serve this
allowing operators
East African markets with
market becomes necessary
to precisely control
a team of professionals.
and will bring us closer
the amount of
to customers’ needs.
material being
The new JAfZA subsidiary aims to make sales,
“The opening
graded, improve
marketing and service
of the new branch
fine grading
support to local customers
continues the process of
accuracy and time.
even more straightforward.
internationalisation that PM
Through its JAfZA
Group has undertaken for
subsidiary, PM Group will
several years. This has led
also provide a portfolio of
the company to enhance
brands, including Manitex,
the identity of its brands in
Valla, oil & Steel and Badger,
many areas outside Europe.”
A Volvo-supported vocational education academy providing industrial training to 150 students per batch has been inaugurated in the Moroccan city of Settat by the country’s monarch, King Mohammed VI. The school features training workshops, classrooms and an auditorium. Apart from Moroccans, the school will also train students from Senegal and Ivory Coast, with the objective
of graduating up to 2,000 students a year. Volvo will develop the curriculum, train the trainers and provide technical assistance, engines, tools, components and other equipment. “Volvo Maroc will provide practical support to the school with regard to student site visits, access to our workshops and securing work placements with suitable companies,” said Tim Richardson, GM of Volvo Maroc’s Construction Equipment Division.
12
neWS rounD-uP M ARCH 2016
neW maChinery
terex delIvers IndIa’s fIrst explorer 5800 crane
Ritchie Bros. Dubai auction nets $41m VolVo-CE CUTS
of our customers working in the oil & gas sector. In particular, we saw strong demand for the Caterpillar D8R dozers, concrete pump trucks and mobile cranes in the auction.” In total, 925 people registered for the auction, including 400-plus online bidders. Out-of-country buyers spent $17 million, which made up 43% of sales. All items were sold with no minimum bids or reserve prices. More than 2,000 items were sold in the auction – 630 more than in March 2015 – including 100-plus excavators, more than 55 dozers and over 40 cranes, Ritchie Bros. said.
HitaCHi l N ua Hol ds a N e re NC e NF de a ler Co achinery Middle
M r nstruction nual deale Hitachi Co el h d its an E FZ n o ai ti ra in Dub . East Corpo ary 16 to 17 ru b Fe m o fr Hidefumi conference gurated by au in as w rence ional unit, The confe t of the reg en d si re p a, the Middle Sameshim om across fr rs le ea d hi 70 guests with Hitac a and over ic fr A h rt o East and N reviewed a ce. Dealers in attendan two-day 2015 at the successful targets e defining event whil for 2016.
upper cabin and engine
Pvt ltd, of Bokaro
remapping, depending
Steel City, India, has
on the operation being
taken delivery of a
performed – lifting or
new Terex Explorer
travelling. The Terex
5800 all-terrain
IC-1 touch screen
crane, India’s first.
control system, along
The crane is a five-
with radio remote
loSSES oN
axle, all-wheel steer
control, provides
HIGHEr EArNINGS
carrier that is 13.2m
operators with
Volvo
long and 3m wide,
accurate load moment
Construction
with a 70m boom
measurements
Equipment
and 21m fixed jib. The
and wind speeds,
reported a rise in
70.2t counterweight
simplifying operation,
operating income
can be automatically
Terex said.
for the last
rigged, helping to
quarter of 2015,
reduce set-up time.
despite lower
Global used equipment seller Ritchie Bros. has reported sales of more than $41 million at its first Dubai auction of 2016 in early March, a 54% increase in gross auction proceeds compared to last year. “People from 71 countries registered for the auction, with buyers from as far away as Germany, Taiwan and the United States participating in person or online in real time,” said Eduard Faig, regional sales manager, Ritchie Bros. “An international audience helped us achieve solid pricing despite challenges for some
H N Construction
The crane also has a
H N Construction’s managing director, rajnish Gautam,
sales volumes,
single engine concept,
said the crane would
low capacity
with advanced engine
greatly enhance his
utilisation and a
management to
firm’s service offerings
credit provision
enhance performance
and improve job-site
in China,
for both road travel
performance. “This
reducing negative
and lifting. A stop/start
unit will be put to
operating margin
technology maximises
work right away at the
from -6.6% in Q4
fuel efficiency for the
Bokaro Steel Plant.”
2014 to -1.7% for Q4 2015. “Even in the global slowdown, Volvo-CE raised profitability and resource efficiency,” said Martin Weissburg, president.
Premium, tough and productive THE VOLVO FMX is a premium truck that is perfect for tough construction jobs and is available in both rigid and tractor versions. It is packed with the latest technical innovations and everything – from in-cab material to the chassis – is of the highest quality. In addition, the Volvo FMX packs a heavy payload, has excellent ground clearance and offers safe driving in all conditions. In short, it is a very productive truck that improves your profitability. For MORE INFORMATION ABOUT THE VOLVO FMX please visit volvotrucks.com/FMX
THE NEW Volvo FMX
14
neWS rounD-uP M ARCH 2016
Manitou ends 2015 in profit
Global handling equipment major Manitou reported a 3% rise in revenue in 2015 over the previous year, with total revenues amounting
to $1.8 billion. EBITDA was $129 million for the year, a 7% rise over 2014. Michel Denis, Manitou’s president and CEO, said: “In
2015, the Manitou Group strengthened its operating and financial performance. The recovery of business activity in continental
US EqUIPMENT
exPanDing footPrint
manItowoc’s potaIn mct85 crane makes IndIa debUt
ExPorTS fAll Year-end figures for 2015 from the
Europe offset the slowdown in the market for rental companies in the USA. Industrial flexibility was further strengthened to adapt to market fluctuations.” Operating profit for the group was $86.7 million, or 4.7%, compared to $68.2 million, or 3.9%, in 2014. Net income was $45.4 million, up from $42.6 million in 2014. The company’s Material Handling and Access Division saw the biggest sales, returning $1.17 billion in 2015 compared to $1.13 billion in 2014, an increase of 3%. The division closed the period with recurring operating income of $62.3 million, or 5.3% of sales, an increase of 2.7 points compared to 2014.
IVECo AdVoCATES NATUrAl GAS Iveco is commited to natural gas, hybrid and plugin technology to reduce CO2 emissions from its road vehicles, its brand president Pierre Lahutte said in Brussels. He was speaking at the European Automobile Manufacturers Association’s “Reducing CO2 from road transport together” event.
Grove GMK all-terrain crane finds work at sea
US Association of Equipment Manufacturers (AEM) show a 19% decline in the export of US-made construction equipment worldwide. The $13.9 Manitowoc’s Potain MCT85
The Potain MCT85
billion export
crane has made its India
purchased by Everest
figure marks the
debut in the western city of
Construction Equipment
third consecutive
Mangalore, at a construction
was manufactured in
annual fall in
site for a 27-storey residential
Manitowoc’s Potain factory
overseas sales
project called Mangalore
in Pune, India. The new
from the US.
Bhandary Heights.
flat-top crane has a 5t
Exports to Africa
operated by crane
maximum capacity and can
and South
rental company Everest
lift 1.1t at its jib end of 52m.
America fell the
Construction Equipment,
“The MCT85 is designed
the all-new MCT85 will
with easy transportation in
remain on-site until January
mind, which is important at
2017, working up to 22
India’s construction sites,
hours a day lifting concrete,
where accessibility can be
shuttering materials,
a key issue,” said Ashwani
blocks and structural
Mattoo, sales director at
steel, Manitowoc said.
Manitowoc Cranes India.
most, according to the AEM report.
Norwegian crane provider the Nordic Crane Group (NCG) has sent one of the four Grove GMK5220s allterrain cranes it recently purchased to work on an oil platform in the North Sea, where it has been tasked with
dismantling a derrick tower. The crane was disassembled ashore and reassembled on the platform for the job. The crane has a capacity of 220t and a 68m twinlock boom, which can be extended to 105m with a jib.
CONTRACTORS CUP 2016 Not only is the Golf Day a great day out, it also represents an ideal opportunity to Not only is the Golf Day a great day out, existing it also represents angiving ideal opportunity to network with potential clients and entertain ones, while you a chance network clients entertain ones, while giving youyou’re a chance to get to with knowpotential the people whoand make up the existing contractor industry. Whether part to get to know theorpeople make up thetocontractor Whether part of the industry if you who provide services it, it’s an industry. opportunity not to you’re be missed! of the industry or if you provide services to it, it’s an opportunity not to be missed! Now in its 4th year, the Big Project Golf Days are a staple of the construction Nowannual in its 4th year, the Big some Project Days are a staple of industry the construction industry’s calendar. With ofGolf the biggest names in the coming industry’s annual calendar. With some of the biggest names in the industry coming together for a day out on the course, the golf days allow construction professionals together for a day on the course, the golf days allow in construction professionals to network without peers from all sectors of the industry a relaxed and fun-filled to network with peersenvironment, from all sectors of the in ainrelaxed fun-filled while alsoindustry indulging friendlyand competition. environment, while also indulging in friendly competition. The 2016 Contractors Cup is an invite-only, free-to-attend event for contractors. The 2016 Contractors Cup issponsorship an invite-only, free-to-attend event companies for contractors. We offer various opportunities for those that Weservices offer various for those companies that provide to the sponsorship construction opportunities industry. All sponsorship opportunities provide services to the construction industry. All sponsorship opportunities include a free day on the golf course - you might even call it working! include a free day on the golf course - you might even call it working!
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16
KIT SPOTTING M ARCH 2016
Potain MDt 178 at iconic French castle
t
he picturesque grounds of the iconic French castle of Château de Chambord in the Loire Valley is hosting a crane from another iconic French name – Potain. A Potain MDT 178 is at work outside the castle in the construction of a new welcome centre for tourists visiting the landmark building and its surrounding parkland. Sporting distinctive French Renaissance architecture, the Château de Chambord is one of the most recognisable castles in the world. Constructed by King Francis I of France, the building was never
fully completed. Historians speculate that Leonardo da Vinci may have been involved in the building’s original design. Today it is an important tourist site, welcoming around a million visitors every year whom the tourist centre will cater to. The Potain MDT 178 working on the welcome centre was chosen by Foucher Fournier, the construction company contracted to build the project. The crane is owned by French crane rental company Valem. According to Manitowoc, the owner of Potain cranes, the MDT 178 is a mid-range top-slewing
tower crane with a maximum capacity of eight tonnes. It offers a maximum jib length of 60 metres, at which it can lift loads of up to 1.5t. With a 219-foot hook height and low-profile ‘city topless’ design, Manitowoc says the MDT 178 is ideal for job-sites with height restrictions or over-swinging operations. Minimal components allow quick and economical setup, tear-down and transport, which ties in with the quick turnaround time of the project at a busy tourist spot. The crane is expected to remain on-site for the three-month duration of the project.
w w w. h i t a c h i c m. a e
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CoVER SToRY M ARCH 2016
NEXT GENERATION
The regional markeT for Temporary power is heading inTo a fuTure of lower cosTs and wider opTions. CMME visiTed The middle easT elecTriciTy show To look aT how Two companies aT opposiTe ends of The specTrum plan To meeT The challenges ahead
T
he 2016 Middle East Electricity (MEE) show held in Dubai last month put into perspective the importance of power in the region and solutions for better and seamless delivery of this vital component of life. While the Gulf is known to be a particularly well illuminated part of the globe – as everything from travel guides to night-time satellite images testifies to – this not only places a huge reliance on electricity in the region, but also glosses over the huge tracts where the power grid is absent. And then there is the constant requirement for back-up, in the case of any eventuality. Imagine being in a lift a hundred floors above the ground and there is a power outage – just one of the reasons for generators to lurk in the bowels of the region’s glittering towers, ready to kick in whenever needed. In non-urban areas outside the reach of the power grid, especially in the several construction sites dotted across this rapidly transforming region’s landscape, life can be even harsher and the need for generators even greater. Vast stretches of the Middle East’s hinterland remain reliant on temporary power from generators to keep going.
21
22
CoVER SToRY M ARCH 2016
The ready availability of fuel at rates that are way lower than those globally is another factor that has led to the widespread use of temporary power solutions in the region. And even though fuel prices in some countries in the region have started to be unsubsidised, the price continues to be moderate enough for generators to be put to use in a wider variety of applications than in most other parts of the world. Add to this the rapid expansion of cities, infrastructure and other facilities in the region over the past few decades, which has made its construction sector a fabled one, the recent slowdown notwithstanding, and a niche emerges for temporary power providers whose business is sustained by generators. According to a spokesperson for Byrne, a leading regional rental company for power solutions that caters for the oil & gas, construction, marine and leisure and tourism industries, the GCC’s growth has opened up a need for individual and tailor-
made services to the industrial, construction and events and tourism sectors, in order to make each new project or event more extravagant and sophisticated than the last. In a conversation with CMME some time ago, the spokesperson said: “Our company is varied in terms of the market it focuses on, and even this varies depending on the strengths of the locality in which Byrne are operating.” “In Dubai, Byrne are heavily into sports and music events, whereas in the eastern provinces of Saudi Arabia and in Qatar, Byrne are much more heavily focused on oil & gas-related activity.” As we have seen in other areas of the construction machinery industry, the major OEMs have been looking at the performance of these rental providers, the variety of their applications and the regional market’s dependence on gen-sets. And they are continuing to push hard in the region, bringing their latest equipment to the Middle East.
“We are not only selling a product; we are selling a solution. In the beginning buyers focus on the cap-ex side of things, but later on they forget about this, because it is the op-ex that matters most in the long run. We are providing machines that keep the long-term efficiency in mind”
Himoinsa has made great inroads into the local power sector since its tie-up with FAMCO.
Iberian ingenuity One OEM manufacturer that has become a fixture in the region’s gen-set market is Spain’s Himoinsa. Ever since it tied up with Al Futtaim Auto and Machinery Company (FAMCO) in the UAE, the partnership between the Iberian heavyweight and the region’s leading provider of industrial and commercial machinery and solutions has made great inroads in the local power sector. Overseeing Himoinsa’s relationship with FAMCO is Terry McGuire, regional general manager for Power and Industrial Products at the Dubai-based company. It is a relationship that was forged just over a year ago and has grown from strength to strength since then, he says. “The Himoinsa range of generators meets the highest standards of quality and safety, and is well respected in the industry for strength and reliability. Partnering with them means we benefit from their substantial investments in manufacturing technology,
23
including state-of-the-art metal forming, powder coat painting, robotic welding and automation. While the market is incredibly price-conscious, Himoinsa provides highquality generator sets but, crucially, at competitive prices,” he said. Outlining how Himoinsa fits into FAMCO’s strategy of going international, McGuire says: “We’ve successfully pursued a strategy of moving from FAMCO being a largely UAEbased company to becoming a fully-fledged international operation. Central to this push is our power and industrial division, as we follow the needs and demands of our customers across the region. With the Himoinsa brand, our position is further strengthened in the gen-set business with the ability to provide sets from 8kVa to 3,000kVa in the main GCC markets, such as the UAE, Saudi Arabia, Oman and Qatar.” FAMCO has already installed Himoinsabacked power solutions across the GCC countries, he says, with Festival City
Doha one of the latest examples. The process began in February last year, with the installation by FAMCO of gen-set technology in the Qatari capital’s new IKEA store, part of the landmark Festival City Doha development. The entire project now uses five 1.7Mw Himoinsa gen-sets installed by FAMCO and backed by their service support. “We have a firm commitment to the power generator business, in which we have been a major player for several decades, and that responsibility extends across the region. We are replicating what we’re doing well in the UAE across the Middle East,” McGuire adds. That process of replication involves training FAMCO sales and service staff across the region to ensure they can be sent out armed with the training and expertise that customers of FAMCO and Himoinsa expect. “As generators most often provide critical power, FAMCO is the critical back-up to those operators and companies that rely on them,” McGuire continues. Of course, service and back-up are easier managed when the brand under question is Himoinsa, whose gen-sets come with service intervals of 1,000 hours. This significantly reduces the total cost of ownership in the long run, according to Guillermo Elum, Himoinsa’s Sales and Marketing director, who believes the premium positioning of Himoinsa in the market, compared to some of the newer and lesser-known brands, is no impediment. Speaking to CMME at MEE 2016, Elum points out: “We are not only selling a product; we are selling a solution. In the beginning buyers focus on the cap-ex side of things, but later on they forget about this, because it is the op-ex that matters most in
NEw iNTRoduCTioN To ThE maRkET
himoinsa’s middle easT hiTs Himoinsa unveiled its
that offer 25KVA and
HYW 35 T5 model diesel
40KVA respectively. This
generator, which has
new rental canopy version
a 1,000-hour service
incorporates enough
interval, to its Middle East
LPG storage for 24-hour
customers at MEE 2016.
continuous operation
The gen-set is fitted
without refuelling. They
with a Yanmar engine and
can also be connected
can now include a special
to an external tank to
kit that allows longer
extend their autonomous
maintenance intervals,
operation for as long as
up to 1,000 hours. This
desired. The integrated
feature is available in both
tanks are LPG-certified
the Industrial range – HYW
for vehicles, making them
from 8 to 45kVA – and the
a versatile option for
Rental range – HRYW from
the rental sector, where
16 to 40kVA. The gen-sets
there is high demand for
from the Industrial range
mobile equipment that
with Yanmar engines (8-
is easy to transport and
45kVA) can incorporate
can refuel with an LPG
fuel tanks of 1,000l, 10
pump at a service station.
times bigger than what
A fuel selector switch
is offered as standard,
makes it possible to use
which translates into fewer
the unit with natural
refuelling trips. Considering
gas as well, giving three
the gen-sets work eight
different possibilities of
hours a day, this new
power supply: integrated
feature guarantees up to
fuel tanks, LGP or NG
70 days of running time.
external supply.
Himoinsa also introduced
Himoinsa says the
its HRGP 60 T5 LPG gas
HRGP models reduce
generator to the Middle
carbon monoxide and
East at MEE 2016. The new
particulate emissions, and
gas-powered generator
also solve the problem
with an integrated LPG tank
of fuel theft, one of
offers 60KVA of continuous
the biggest concerns
power, with two variants
of the rental sector.
24
CoVER SToRY M ARCH 2016
the long run. What we are doing is providing machines where we keep the long-term efficiency in mind. We are keeping the capital expenditure at the optimum level, but at the same time we are reducing the operational costs of all companies using our sets. This philosophy has helped us post a 16% growth figure globally in 2015.” “At MEE 2016, we are presenting to the region models that can run more than 1,000 hours between services, instead of the 250 hours or even 500 hours that is the industry standard. So what we are doing is reducing the op-ex for a company because we don’t need to send in our people and parts as often as some of the other brands would need to. Lifecycle costs are important, especially with rental companies, which is possible when you’re looking at long service intervals.” Elum adds that while long and continuous running hours and increased up-times available through Himoinsa’s gen-sets are a huge selling point for the brand, that does not mean there is any lack of support when needed. “With FAMCO as our partner in the GCC countries, we have also ensured that
we are able to provide the best service and back-up support to our customers in the region whenever required,” he says. An innovation at Himoinsa that Elum is very enthusiastic about is the hybrid solution that the OEM maker is providing to the market. Himoinsa’s hybrid generator is equipped with a variable speed engine and battery array, allowing the unit to be charged from renewable energy sources such as solar or wind. “This product is mainly focused on the telecom sector and has been developed with the Middle East market in mind. We launched it with FAMCO at MEE last year, and since then it has become an important part of our portfolio here. The product is for continuous application, not for standby power, and is able to work at temperatures as high as 55 degrees Celsius without any issues,” Elum says. The variable speed engine can operate from 1,200 to 3,000rpm and reduces fuel consumption by 40% compared to conventional generators, he explained. “The system also allows us to reconnect it with other external sources. This could be solar
While gas is a good choice for continuous use, in remote off-grid areas alternative fuel choices may be needed, the experts say.
“The most important adaptation for the local market is the cooling package we fit on our Middle East gen-sets, which include bigger radiators that allow them to operate in ambient temperatures of up to 50 degrees Celsius”
panel or wind turbines. So this is a very sophisticated product, but with a high level of efficiency.” As a response to the times and the prevailing market trends, alternative power sources are quite big with Himoinsa. At MEE 2016, the company introduced two new gas-powered generators in the region. Coming close on the heels of a rise in diesel prices in the GCC, especially in the UAE, the benefit of offering non-diesel power sources is instantly obvious. The Spaniards also have other very valid reasons, though. “The main reason for the launch is to offer the market here a green technology option, which people are starting to look for. Usually gas generators are used as stand-by units, but our models are designed for continuous operations, which is one of the usage features of the Middle East,” Elum explains. Since field use in off-grid locations and on construction sites is a demand in the Middle East, Elum feels that gas generators will find great uptake in the regional market. Detailing the features of the new models and why he is bullish about their prospects in the region, he says: “Our gas gen-sets have many advantages for the kind of applications that buyers in this region want. Firstly, unlike diesel, gas is very difficult to pilfer. It is stored as LPG in a pressurised tank, and you cannot siphon off gas from a holding tank like you can with diesel.” “Secondly, gas is a good choice for continuous use, but in remote off-grid areas it is not as easy a fuel to transport. However, many places in the GCC region have continuous supply of gas from the gas wells, which solves that problem for the region and makes the gas gen-sets viable for the oil & gas sector.” A crucial third feature is the way Himoinsa tailors its products for optimum performance in harsh operational environments in its several destination markets. “Himoinsa is a vertically integrated manufacturer. What this means is that we are able to adjust our products to a market’s peculiar requirements. When we go to North America or Russia, we are working with extreme low temperatures. Here in the Gulf region, we have extreme high temperatures. So being a vertically integrated manufacturer allows us to adjust our products for the final market and even for the final user,” Elum says. “The sets that we are introducing here at MEE 2016 have very much been optimised for use keeping the GCC’s conditions in mind. In terms of cooling efficiency,
25
ExCluSiVE fiRST look
weichai reveals new models aT mee Weichai held an exclusive
president of Weichai Group,
unveiling of multiple
said: “Each year, Weichai
generator drive engine
invests over $220 million in
models on its stand at
research and development
MEE 2016. These engines
through its nine R&D
included both diesel and
centres and product test
gas models, with some new
centres across China, the
to the market and others
United States, Europe and
enhanced versions of
other regions. This year,
existing models. Key OEM
we achieved the successful
partners and distributors
launch of a full range of
attended the launch and
diesel engines for power
presentation, as this was
generation covering a
the first time the high-
range of 13-1,400kVA. Next,
performance engines
Weichai will be introducing
were shown in the UAE.
power generation engines
The new Weichai generator drive engine
up to 3,000kVA.” “We always strive to
models exhibited at MEE
provide the best value to our
extend its existing lineup
users around the world. The
and included the WP2.1,
products we presented at
WP6 and WP13 series, with
MEE are a result of the latest
power ranges from 17.5kW
R&D and position Weichai
to 366kw; the 6M33 series
as a full range generator
with a power range of
drive engine supplier. Our
520kW to 610kW; and the
future plans are to launch
top-of-the-range 12M26NG
engines up to 4350kW,”
series with a power range
said Amit Deshpande,
of 476 to 720kW.
director, Sales and
Harold Lang, vice
Marketing for Middle East.
they can operate without any issues at temperatures as high as 57 degrees Celsius,” Elum explains, adding that the air filters fitted to the models are heavyduty, to cope with the higher prevalence of sand, dust and particulate matter in the air in the region. “We have been the fastest growing brand in the GCC region’s power sector for the past four years, and it is these innovations, as well as our focus on reducing the customer’s op-ex and total cost of ownership, that has helped Himoinsa and FAMCO register this growth. In the end, we need to help our customer save money,” Elum says. Chinese challenge While Himoinsa is a well-known European brand that caters for a plethora of big projects and names both locally and worldwide, on the other side of the price spectrum, a brand from another part of the world is trying to make big inroads into the GCC region. Chinese engine producer Weichai, founded in 2002, produces engines and drive-line components for trucks, buses, construction machinery and power and marine applications. Headquartered in Weifang, Shandong Province, the company had revenues of $12.1bn in 2014. With roughly 1,000 of its units sold in the Middle
East’s power sector in the past six years, it is now making a bigger push into this market. “In 2014, we opened a formal Middle East office in Jebel Ali Freezone in Dubai to function as our regional headquarters,” says Zhang Gengsheng, GM and assistant to the group president, at Weichai’s headquarters. “The decision was influenced by lagging sales in the Chinese domestic market, which led us to plan a more powerful presence in the Middle East.” Through arrangements with dealers and distributors all around the region, the company is looking to make a big push in the Middle East energy sector, Zhang tells CMME at MEE 2016. Weichai is relying on equipment replacement cycles at many rental firms, which will be updating or expanding their fleets. “With most rental companies operating on a standard three-year replacement cycle, that means many units purchased when the market started picking up in 2011-12 are ready to be replaced,” Zhang says, adding that Weichai will also target construction companies and telcos in the region as it goes about producing more than a million engines this year. “We have a full end-to-end in-house manufacturing process covering diesel engine components, the engine itself,
26
CoVER SToRY M ARCH 2016
canopies and other critical components,” Zhang says. “Our high-speed engine range starts at 10kVA and extends to 1,250kVA. We also offer a range of medium-speed engines which can operate on heavy fuel oil extending from 300KW up to a 10MW single unit.” Weichai has an existing association with Germany’s MAN and, with its acquisition of century-old French engine company Baudouin, it covers the 450-1,250kVA range with “French technology manufactured in China”, Zhang adds. The brand’s unique selling proposition is an approximately 25% lower price point than a premium market competitor, he says, which includes a longer warranty plus a year’s free servicing. To cement its position in the Middle East market, the company is offering a two-year warranty as standard this year, along with a year of free service to rental and telecom customers. “We have regional services offices in the UAE, Saudi Arabia and Iran, and are setting up a fourth this year in Lebanon. In addition, there is a network of service and spare part dealers in all of the GCC countries. With a total engine population of over 10,000 in this market, including 1,000 gen-sets, in the six years we have spent here, we are able to stock most of the spare parts required for these engines in the local market at our distribution centre in Jebel Ali. This sizeable local presence prompted us to open the Middle East regional office and maximise our potential in this growth market,” he points out. Looking at the specifics of the GCC market, Zhang cites lack of liquidity as an issue. “This will translate into more shortterm use of equipment rather than outright purchases. Consequently, we believe the rental players will benefit and we project a growth of between 15 and 20% for the Middle East’s rental sector this year.” “Added to this is a pressure on margins in the current downturn environment, which will lead to the demand for more fuel-efficient products, especially after the recent hike in diesel prices in the UAE. These are conditions that we plan on capitalising on. Being competitively priced as well as having low total cost of ownership, our products are ideal for rental fleet owners in these times.” In anticipation of a shift of fuel preference towards the cheaper natural gas, Weichai has come to MEE 2016 to launch its gaspowered gen-sets in the region, Zhang adds. “We are well-placed to benefit from the drive to efficiency in the Middle East
“The main reason for the launch is to offer the market here a green technology option, which people are starting to look for. Usually gas generators are used as stand-by units, but our models are designed for continuous operations, which is one of the usage features of the Middle East” market because of the German and French technologies we have in our engines in both the diesel and, especially, the gas segments. A technologically advanced, fuel-efficient, low maintenance and low-priced engine, such as ours, could well be the clinching factor for the rental sector.” But Weichai is not just banking on cost and efficiency. The machines it is bringing to the Middle East market are all customised for peak performance in the harsh climate and dust of the regional environment as well as rough and tough conditions at job-sites. “Our products for the Middle East are not the same standard products that we sell in China or elsewhere,” Zhang explains. “Our machines for the Middle East are fitted with heavy-duty air filters for protection against dust and sand, and stronger base frames that can cope with frequent movements from site to site.”
Green technology is something the market is beginning to consider.
“The most important adaptation for the local market is the cooling package we fit on our Middle East gen-sets, which include bigger radiators that allow them to operate in ambient temperatures of up to 50 degrees Celsius. Our units are tested at these temperatures before we declare their ratings.” Overall, Zhang is optimistic about Weichai’s fortunes in the Middle East going forward. “We are in a good position to grow our share in a market that will focus aggressively on reducing costs this year. With pressure on margins, purchase decisions at most companies will be based mainly on who is providing the best combination of price, performance, fuel efficiency and service – rather than on the brand name or outright performance and quality. At Weichai, this is the matrix that we thrive in.”
Al-Qahtani Vehicle & Machinery Co. Tariq Al-Qahtani & Brothers
28
PORTABLE POWER M ARCH 2016
PERFORMANCE UNDER PRESSURE
Doosan Portable Power’s range of comPact comPressors with a variety of tool anD Power aPPlications has the miDDle east covereD when it comes to Portable Power solutions at construction sites
W
ith large infrastructure and construction projects where sophisticated power tools and pneumatic equipment are used day and night, power networks that are underdeveloped in certain areas, and the low price of fuel, a combination of factors makes the Middle East an important market for portable power products. The past few decades have seen many construction projects in the region, both large and small, that have required temporary power to get going. Lighting towers are also important on many of the major projects underway, and the hot summer conditions and the need to keep jobsites running 24 hours a day mean extra requirements for
power and artificial lighting. With the plethora of power tools and pneumatic tools used at most modern construction sites, the need for a power source or compressor becomes inescapable. Without it, the jack hammers, pile drivers, pneumatic drills and breakers, sand blasters and riveting guns would all come to a grinding halt. Whether rented or owned, every construction enterprise needs the services of a reliable yet lightweight compressor and power source
29
Versatility and portability make small but powerful compressors vital for rental and construction companies in the Middle East.
30
PORTABLE POWER M ARCH 2016
Shining BRighT
comPact light tower for miDDle east anD africa As part of a comprehensive range of portable power products for the Middle East and Africa markets, Doosan offers a 50Hz version of the company’s LSC (LightSource Compact) portable light tower. Built with the rental market in mind and also available as a 60Hz model, its applications include lighting on road and bridge construction sites, all general construction applications, as well as lighting for special events, emergency and disaster relief, oil & gas drilling, and mining and quarrying locations. The light tower has a power train based around the Kubota D1005 watercooled diesel engine, providing 8.5kW at 1500RPM and meeting EPA Tier 4 final emission regulations. Thanks to a high output alternator, the power rating of the LSC light tower has been increased to 6kW. The additional power allows operators to fully utilise the light tower’s four 1,000-watt metal halide floodlights at the same time as using the unit’s receptacle power function. The fuel tank capacity allows an extended run time to 64 hours. The compact frame maximises loads for transporting on trucks, and 12 fully assembled units can be accommodated on a standard 48-foot flatbed trailer. The floodlights provide broad light distribution with their spread of beam. The cast aluminium fixture housing includes a reflector for optimal light distribution over a wide area. The small footprint of the unit improves wind load resistance. The model is backed by a factory warranty providing twoyear/2,000hour bumperto-bumper coverage.
that can be quickly moved between job sites according to requirements. The answer is portable power solutions. Recent product launches in this field show that rental companies and end users in the Middle East are looking to new technologies which have environmental benefits in terms of less fuel used or longer operational lifetimes, and have improved costbenefit results too. Several international manufacturers count the Middle East among their top-performing markets globally for portable power units, and are responding to the market’s demand for the latest and best products. One such manufacturer is Doosan Portable Power (DPP), part of the South Korean Doosan Group’s Doosan Infracore Construction Equipment (DICE), which has a range of models for the Middle East market. The company has had a long and successful association with the Middle East, and its machines can be seen on many construction sites in the region. The portable compressor range from DPP is one of the most comprehensive in the Middle East market and includes a strong selection of small Stage IIIA/Tier 3 models, including the 7/20 and the high ambient 7/26E HA, 7/31E HA, 7/41 HA and 7/53 HA models, with free air deliveries from 2.0-5.0 m3/min (70-177cfm) and a rated operating pressure of 7 bar (100psi). These small compressors are aimed at a very wide range of applications in plant hire, construction and general industry, including standard pressure applications such as powering breakers and tools in road repair, demolition and refurbishment. “Like all Doosan compressors, they are built to withstand the rigours of everyday applications in the toughest conditions. In addition, small portable compressors from Doosan can be equipped with a ‘bunded base’ option for environmental safety, providing a fully contained base to ensure that all operating fluids, such as fuel, oil and water, stay within the compressor,“ says Gaby Rhayem, regional director Middle East and North Africa, at Doosan Bobcat. According to DPP, the 7/26E HA, 7/31E HA, 7/41 HA and 7/53 HA models
offer a number of important options, including an integral 6kVA generator which increases compressor flexibility by supplying electrical output in addition to compressed air. As a result, electric tools and other electrical equipment such as lights and fusion welding systems can be run in parallel with pneumatic equipment. The new 7/53 HA portable compressor is the latest addition to the range, replacing the 7/51 HA model. It has been redesigned by Doosan so that it remains in the European Stage IIIA category of emission standards, avoiding the need to transition to meet Stage IIIB regulations, with the cost saving ensuring it is ideal for use in the Middle East market. The new 7/53 HA portable compressor supplies 5.0 m3/min (177cfm) of compressed air and is powered by a four-cylinder mechanical turbo-charged Yanmar liquidcooled 4TNV84T-BMDP engine, producing 36kW (49HP) of power at 2,600rpm.
31
“Selling a new machine to a customer may be the glamorous part of the operation, but it is the less glamorous follow-up service that guarantees the product will be able to perform for long hours on the job-site, ensuring productivity and profit for customers” “Like all the other models in the small compressor range, the 7/53 HA compressor can be supplied with a range of running gear options to meet local market requirements,“ says Rhayem. “The running gear can also be replaced with a permanent metal support, typically ordered when the compressor is to be truck-mounted.“ The new 7/53 HA compressor offers a reduced size, with a length of 3.3 metres in the fixed height, running gear version and minimum and maximum height of 3.5m and 3.7m with adjustable height running gear. It also has a width of 1.4m, a height of 1.3m and additional new features including integral forklift slots and increased fuel autonomy. Excellent serviceability “The serviceability of all Doosan small compressors is excellent, with easy access to all maintenance points. All areas have been carefully designed for ease of inspection,
maintenance and repair,“ Rhayem explains. Service intervals for several components have been extended to increase uptime and reduce maintenance costs. The 7/53 HA compressor incorporates a new spinon separation element that further reduces service time. “All Doosan small portable compressors have an intuitive, simple key-start sequence, ideal for construction and rental companies because of the reduced risk of machine abuse by untrained operators. The user-friendly control panel offers an open layout of instruments and warning indicators. A folding lift bail reduces the risk of theft by keeping the lifting eye within the compressor enclosure, and a built-in toolbox compartment offers ample storage space,“ he adds. The small compressor range is part of a complete line of portable compressors from Doosan Portable Power, comprising 24 different models, with free air deliveries
Doosan Portable Power has a range of portable power products and compressors for the Middle East, supported by a hub for parts and service in Dubai.
between 2.0 and 45.0m³/min (70 and 1,600cfm) and operating pressures between seven and 35 bar (100 and 500psi). The modular design ensures that a wide range of optional equipment can be added easily. Selling a great product is only half the battle, however, for DPP. Providing adequate after-sales support is just as important for customer retention and reputation management, Rhayem feels. With steady sales in the region and the need for after-market support from its dealers, who in turn need ready access to spare parts, DICE opened a new parts distribution centre (PDC) in Dubai in February last year, to service their two key lines in markets across the Middle East and Africa – Doosan Portable Power and Bobcat. The inauguration of the PDC coincided with a conference for MEA dealers. Over a hundred representatives from the company’s dealer network in the region, along with DICE senior management from Europe, attended the opening of the PDC in Jebel Ali, which was followed by a gala event and dinner at the Armani Hotel in Dubai. Operating out of an Agility Logistics warehouse in the Jebel Ali Free Zone, the PDC houses around $3 million worth of inventory in Bobcat and DPP parts, with over 1,540sqm of warehouse space serving 25 dealers in the region. “Selling a new machine to a customer may be the glamorous part of the operation, but it is the less glamorous follow-up service that guarantees the product will be able to perform for long hours on the jobsite, ensuring productivity and profit for customers,” Rhayem says. The PDC enables DICE to do just that by serving the large number of DPP units active in the Middle East and further afield in Africa. “Our strategy is to cover a big region within 24 hours with parts. Before we had this PDC, we were able to do something like over 70% coverage within 24 hours. With this set-up, we think we can increase this number by roughly 20%,” he notes, meaning that 90% of the MEA region can obtain parts within 24 hours. The new parts centre means dealers have rapid access to a wider range of spare parts. “Faster delivery means less cost, because we will stock here. Dealers will pay only the cost of shipment from Dubai to their country. So Dubai to Oman, Dubai to Qatar, Dubai to Saudi is surely less than from Europe, in Belgium, to any country here in the Middle East,” Rhayem adds.
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ConCrete pumps M ARCH 2016
POWER PUMPERs
Precision in the delivery of concrete is of vital imPortance at any construction site and even more so in the middle east, which is known for tough oPerating conditions and high customer exPectations. CMME looks at how manufacturers of truck-mounted concrete PumPs are meeting market demands
I
t’s easy to marvel at the skyscrapers, luxurious hotels, ambitious metro projects and other architectural wonders taking shape across the GCC. But the less glamorous, and sometimes overlooked, aspect of all this construction is the equipment needed to build these projects. After the financial crisis of 2008, demand for construction machinery nearly ground to a halt as most projects underway found themselves in limbo. Concrete equipment sales suffered a similar fate, and several concrete pumps bought before the crisis lay idle in the ensuing years, explains Jens Bawidamann, regional director at Putzmeister Middle East. Now, however, as the industry gains traction, business is booming again in concrete pumps. But while the UAE market is currently nearly saturated as far as stationary pumps go, truck-mounted pumps are increasingly in demand. “We have had extraordinarily good business for our truck-mounted pumps, especially for our newer models,” Bawidamann tells CMME, noting that the German manufacturer has been seeing continuous growth in the Middle East over the past five years, with especially strong sales in the GCC. Putzmeister has been finding success with truck-mounted pumps in longer boom lengths, and the company has launched new machines in the past few years in the
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A concrete pump is the heart of a building site and often the fulcrum around which the construction process revolves.
34
ConCrete pumps M ARCH 2016
eCo FrIenDLY
the mixer goes hybrid As part of efforts to reduce its environmental footprint,
connected to the battery. During transport, the
CIFA has unveiled a new
diesel engine recharges
product in its concrete
the electric battery if
mixer line-up: the plug-in
necessary, ensuring
hybrid truck mixer from
that the truck mixer can
its Energya series. It is
operate autonomously.
available in two models, E8
“When you brake with
and E9, and is much quieter
a standard truck, you just
than a traditional mixer,
lose the kinetic power that
while also using up to 30%
you have when travelling,”
less fuel, Marcello says.
Marcello says. “With
In a conventional truck
Energya, you’re able to
mixer, drum movement is
put part of that energy
generated by a hydraulic
inside the batteries to
system. In the hybrid mixer,
be used later in making
on the other hand, the drum
the drum turn. So it adds
is rotated by an electric
a lot of efficiency.”
induction motor powered by a lithium-ion battery.
The advantage of the mixer being able to operate
The batteries can be
even when the engine is
charged either from the
switched off particularly
power grid or through a
comes into play when noise
generator powered by a
is an issue, such as in city
diesel engine on the truck.
centres, Marcello points
This allows the truck mixer
out. “If you have to work
to be fully operational even
in closed environments
when the batteries are dead
such as in a metro project
or the truck is switched off.
or in underground works,
Thus, during loading
being able to switch off
operations in the plant
the truck, you can just
and when discharging
stop polluting. You don’t
at the work-site, the
produce exhaust gases,
truck’s diesel engine can
and so that contributes
be turned off, and the
to enhancing the living
drum can be powered
and working conditions
by the electric motor
of the employees.”
30m, 40m and 50m classes. “They are more user-friendly, efficient and maintenancefriendly, and customers are really realising that now.” A recent addition to the German brand’s line-up is the BSF 36-4 16H, a pump with a 36m boom length. Other boom lengths popular in the range are 42m, 49m and 56m. Meanwhile, Italian concrete equipmentmaker CIFA has also been faring well in the region, with double-digit growth in recent years all over the Middle East, says Adalberto Marcello, head of Communication, Digital Marketing & CRM at CIFA. CIFA supplies truck-mounted pumps in its Steeltech and Carbotech ranges in the region. Pumps in the Steeltech range have booms made of steel, as the name suggests, whereas those in the Carbotech range are made of carbon fibre, which is designed to be lighter and longer-lasting. In the Middle East, the Steeltech models with boom lengths of 42m and above are the most popular, Marcello says. While the Carbotech range is also available, it is currently more popular in Europe, which has stricter limits on the loads trucks are allowed to carry. As the market for truck-mounted pumps continues to grow, in parallel with the surge in construction activity, CMME asked: What are customers in the region looking for when buying these machines?
Marcello and Bawidamann both firmly emphasise the importance of product reliability and support from the dealer and manufacturer. “Customers look for a solid partner to be able to assist them in everyday needs. They expect us to be reactive, responsive to their needs and queries, especially when it comes to spare parts and service,” CIFA’s Marcello says. Bawidamann points out that ease of use and maintenance is essential. “They need machines which are easy to handle for operators, user-friendly and reliable. The resale value is also quite important.” Premium equipment manufacturers often admit that Middle East customers tend to be highly purchase price-conscious, which means it can be a challenge to convince them to buy premium equipment and original spare parts, rather than cheaper alternatives. Bawidamann points out that since a concrete pump is one of the highest investments for a ready-mix business, buying reliable equipment is crucial. “If this machine stops, the whole factory stops. The batching plant has to stop, the drums and mixers have to stop. So this is the most important machine in the ready-mix plant. That’s why reliability is so important.” A rugged and reliable product is even more crucial in order to withstand operating conditions in the Middle East, notorious for being among the toughest in the world. “What you have to consider is that the Middle East market is very different from Europe. First of all, you have the climate. You have lots of dust, humidity and heat, which is not good for any machinery. Second, you have a different level of skills in the people who are operating the machines. An operator from Europe will treat his machine like his baby. Here, people don’t care as much,” he says. “Third is that the projects are on a much bigger scale than in Europe. The amount of concrete which is pumped here per year is maybe the highest in the world. So the pumps are running the longest, they are pumping the most, they have the most [unskilled] operators and the worst weather.” It’s certainly a long list of demands and challenges for equipment to face, so it’s worth examining how manufacturers are adapting to the demands of the region. One way to do this, of course, is through launching new features and systems geared towards making concrete pumps more user-friendly and efficient. In response to customer feedback on its
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“If this machine stops, the whole factory stops. The batching plant has to stop, the drums and mixers have to stop. So this is the most important machine in the readymix plant. That’s why reliability is so important.” products, Putzmeister has been working on ease of maintenance on its concrete pumps, Bawidamann says. One approach is to rely more on bolt connections rather than welding on newer machines, making it easier to carry out repairs. “In the past, for example, the pipeholders were welded. We have a lot of movement during operations, so the pipeholders crack and then people start to weld by themselves, which they should not do because it’s special steel. You need a certified welder, and if [customers] weld by themselves, most of the time they make it much worse. To avoid this, we introduced more bolt connections. Anybody can open and close a bolt, so it’s simpler. We also have much more interchangeable parts, and we have reduced the variety of parts,” he notes, adding that this also makes maintenance a lot easier. Putzmeister also offers a one-sided support (OSS) feature when space is at a premium, allowing the truck-mounted pump to function when its support legs
are extended only on one side, so that the boom can still function in confined spaces. To ensure that the human element, namely the operator, is also accounted for, Putzmeister holds annual training sessions for safety, trouble shooting, technology special projects and so on, to keep operators and technical staff fully aware of how the machines should be operated and maintained. Technological advances play an increasing role in making concrete pumps safer and more efficient, and CIFA has introduced a Smartronic system, available as an option on the Steeltech series. Smartronic is an electronic system overseeing safety aspects of the pump to prevent operator error, Marcello explains. For instance, the system can prevent the truck-mounted pump from tilting if stabilisation is incomplete. Additionally, the system is also capable of recording data, working hours and so on, providing a convenient interface between the machine, operator and service
Concrete pump makers are constantly innovating their products to enable them to reach greater heights and get faster flow.
team. The Smartronic system enables the operator to detect and fix errors as they arise. However, as tech-savvy as they may be with mobile phones and the like, Middle East customers are not always at the forefront of embracing technology in machinery. Marcello admits that CIFA’s clientele in the region often prefer machines with fewer electronics, which could mean a reduced likelihood of things going wrong. However, the company is actively looking to promote the system, and clients are beginning to recognise its advantages, which include fuel efficiency. “The machine is completely managed by an electronic system, one of the main tasks of which is to adapt torque delivery from the truck engine. So it helps to adapt the correct pumping speed and truck engine revolution in order to be more efficient in fuel consumption. In our previous machines, people could have very high RPMs or very low RPMs. Both conditions are not optimal for fuel consumption.”
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R E W O P W A R EED TO N U O Y G IN EVERY TH
KNOW
41
eeT TOP 10: Fl en T M anageM T iP s
38_neW Releases The latest releases from the world of construction machinery.
n a more How to ru fleet. profitable
44_lOng haul Construction truck makers optimistic for the future.
48_gOlden jubilee Volvo’s articulated hauler is 50 years old this year.
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NEW RELEASES M ARCH 2016
New Grove GMK4100L-1 taxi craNe Why get it? Class-leading load Charts in a more CompaCt paCkage Manitowoc has introduced a new 100-tonne capacity Grove all-terrain crane for the global taxi (road travelling) category. The four-axle Grove GMK4100L-1 comes with one of the best load charts in its class and a compact design that helps access and manoeuvre on narrower job-sites. The GMK4100L-1 features high load charts in its class in both the maximum counterweight configuration and the most common taxi configuration, with a weight of less than 12t per axle – a common axle load limit in many countries. According to Manitowoc, which owns Grove cranes, the new GMK4100L-1, which replaces the GMK4100L, delivers 6.9% better load charts overall than its predecessor, when in its 26.2t maximum counterweight configuration. In the taxi configuration with a 6.7t counterweight, it provides a 9.3% increase in performance. Even when operated with the maximum roadable 19.9t counterweight for up to 16.5t per axle, the crane sets a new benchmark in its class, the company claims. The crane features an 18-metre
telescopic swing-away jib which can be extended with an 8m boom extension for a total jib length of 26m, which also offers an improved offset of 0 to 45 degrees. Jens Ennen, senior vice president of All-Terrain and Truck-Mounted Cranes at Manitowoc, said the new GMK4100L-1 is the result of improvements and innovations developed at the factory in Wilhelmshaven, Germany, where it is built. “We have focused strongly on bringing superior reliability, return on investment, ease of transportation, user friendliness and capacity to this crane,” he said. “With classleading load charts and specifications, the new GMK4100L-1 is a highly mobile crane that is suitable for use on job-sites around the world.” The GMK4100L-1 is shod with 14-inch tyres and has a width of 2.55m, versus the 2.75m of its predecessor. It is also 0.5m shorter, making it better suited to narrower and congested job-sites. Power comes from a single Tier IV Final/EUROMOT 4 MercedesBenz OM470LA sixcylinder diesel
engine, which reduces weight and allows it to carry more counterweight for superior lifting ability. The engine has a 320kW rating at 1,700rpm and a maximum torque of 2,100Nm at 1,300rpm. Equivalent Tier III engines are also available. Manitowoc’s new Crane Control System (CCS) is fitted as standard to aid operators, with a new Boom Configurator Mode providing optimum boom position for a specific lift. The operator inputs lift parameters such as radius, load or boom length to be moved, and the system calculates the best boom configuration. Once the operator selects the preferred option, the boom automatically extends to the required length. SPECIFICATIONS
gmk4100l-1 Max lifting capacity: 100t Main boom length: 60m Max tip height: 85m Total GVW: 48t
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sKyjacK’s sj86t teLescoPic BooM Why get it? tall work height, wide horizontal outreaCh and range of motion
chicaGo PNeuMatic’s New forward PLate coMPactor Why get it? integrated tubeless water distribution system, light and CompaCt design Chicago Pneumatic (CP) has expanded its compaction equipment range with the launch of the MV58, a light and powerful forward asphalt plate compactor designed for compaction of thin asphalt layers, small repairs and road maintenance work in confined areas The company claims the MV58 is easy to operate, manoeuvre and maintain, and offers fast, efficient performance in a unit weighing less than 70kg. “The MV58 meets the demand from contractors and the rental sector for lightweight forward asphalt plate compactors that don’t compromise on speed, efficiency and operator safety,” said Andrzej Mroziński, CP’s spokesperson. A standard integrated, tubeless water distribution system prevents asphalt from sticking to the plate, allowing higher uptimes and lower maintenance costs by reducing time for regular plate and pipe cleaning. A corrosion-free five-litre water tank has an easy-to-reach flow adjustment valve and is also easy to hook on and off, supporting speedy stops and refilling.
Skyjack’s SJ86 T telescopic boom is one of the latest platform lift products from a manufacturer that specialises in aerial work platforms. The Ontario-based company, part of the Canadian Linamar group which produces engineering products and equipment, is known for its extensive line-up of aerial work platforms and booms that suit several load, height and space requirements. With a horizontal outreach of 23.42m and equipped with a jib with a range of motion from +65 degrees to -60 degrees, the SJ86 T is ideal for working on the exteriors of tall buildings and structures in applications such as installing glass and helping with steel erection on new buildings. The boom features a 0.91m x 2.44m platform, an unrestricted platform capacity of 227kg and a restricted platform capacity of 341kg.
The default is the restricted capacity. The maximum platform height is 26.21m, while the maximum work height is slightly higher at 28.21m. A 55.2kw motor takes care of power requirements. Lights on the control boxes on the base and platform indicate which zone the operator can be in. Once the platform reaches the restricted area, the amber light flashes to notify the operator they have reached the limit of the restricted area. The operator must then switch the toggle to the restricted capacity before moving into that zone. According to the company, the new telescopic boom, like other Skyjack units, is designed to offer low lifecycle costs and great return on investment by using shared components with other Skyjack models. For example, the axles, relay-based control system, fiberglass cowlings and modular platform railings are the same on the new telescopic boom as on other Skyjack machines. Skyjack recently delivered the SJ86T to Ottawa-based Ontario Rental Supply (ORS), which already has more than 100 Skyjack aerial work platforms in its fleet and is one of the first to operate the new model. “We like that the SJ86 T offers highcapacity zones and dual-capacity ratings,” said Pat Kelahear, general manager at ORS. “We’ve mainly used the telescopic boom for glazing applications, installing glass on the exteriors of tall building, since it offers quite an impressive working height.” SPECIFICATIONS
sJ86t Work height: 28.21m Horizontal reach: 23.42m Platform rotation: 170-degrees Max capacity: 341kg
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01 Brand for tHe Buck While it pays to go with a brand that has a track record in the region, you can also benefit from a new and untested one on the market if you negotiate a suitable sales price for a lesser-recognised machine that may not have as high a resale value as an established one.
02 Homogenise your fleet A single brand or model across each segment of machinery can give you advantages such as improved service workshop familiarity with the machine, and help you to more accurately gauge when a major overhaul is needed. Spare parts availability is also easier from a single source. Add to this the benefit of being able to sell your used fleet and buy in new from one seller under the various buy-back or replacement schemes available, and you see how larger single-brand volumes can receive a better deal.
: n e T p To e r o m a n u r o T Ways T e e l f e l b a T i f from s n pro r u T e ing r To boosT iness guide s E u M b M g C n i e T Th nTrac o c d n a T your flee spare parts availaBility Wherever possible, go for equipment with easy availability of spare parts. Check that parts are readily available, not only from the distributor but also from other sources. This ready supply will reduce the downtime when your machine is waiting for parts and not earning money. When buying secondhand or older kit, check that it is still supported by the manufacturer or that it can use generic parts.
servicey r his Tno s d machine
S econd-ha bought ferably be re p ld u o sh e service hecking th c r e ft a ly on histories lar service u g e R . ry machine histo oked-after lo ll e w a sts. Also show verhead co ice o r e w lo h rv wit a major se calculate if ise ra n a c this is near, as ership initial own costs.
03 04
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top ten M ARCH 2016
maintain records Accurate records of service intervals, major overhauls and work hours allow you to know when a machine is at its next interval and also to calculate the profitability of individual machines. If a machine reports frequent breakdowns or requires replacement of parts often, then it is not pulling its weight and is best jettisoned.
data monitoring Systems that provide data on the condition of your equipment and monitor component performance will flag up any underperforming bits and allow you to replace them before overall operation is affected. Telematics systems and oil tests which reveal the presence of worn material are some of the ways to provide these timely stitches.
05 06 sel l d an Wisely l de are opytimum time
cHeck tHe oil An oil test on the machine at the auction or sale site when buying second-hand will reveal whether there is excessive wear and tear of the internal parts.
ding th u Understan l enable yo achine wil m ttle li a ll h it se to r it. W st value fo e b ma e o fr th t t c e to g to extra ft le fe li e c in the performan t the value e g t o n l il w ost obvious bo machine, it n a e b n a c t o market tha book. It als et balance e ir fl a r p u re o y u to if yo etter price b e a g s a e h m a tc fe or d e all wear and servic furbish re r o , ing before sell esh lick it with a fr of paint.
09
07
sign service contracts A long-term service contract often ensures smoother operation if up-time and optimal performance are key factors in your fleet’s profitability. A service contract with a recognised provider of technical expertise can reduce on-the-job breakdowns and guarantee continuous operation.
08 10 no idle time Operators sitting in idling machines drag down fleet efficiency hugely. A telematics system can profile individual operators, who can then be trained to reduce idle time as required.
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ConstruCtion vehiCles M ARCH 201 5
Betting on the long haul navigating the slowdown with new products and strategies, the construction and heavy trucks segment, along with specialist bodybuilders, is optimistic about demand picking up later in the year
A
fter a challenging 2015, in which continuing low oil prices and the uncertainty caused by geopolitical conflicts around the Middle East raised pressure on GCC governments to restructure fiscally in order to compensate for declining revenues, manufacturers and dealers of construction trucks and vehicles are uncertain about demand in the year ahead. Infrastructure and real estate, the two biggest drivers of demand for construction trucks and vehicles, are both expected to see investment slow in the medium term, according to a report by real estate advisory JLL. “As governments become more cautious about their finances, there is a likelihood of cuts in infrastructure spending. While many of the already announced projects are likely to proceed, they may be scaled back or rescheduled over an extended time frame, with future projects being curtailed,” JLL says in the report. While the economic experts project lower demand for construction vehicles this year, owing to the uncertain investment situation in the infrastructure and construction segments, truck makers, bodybuilders and distributors are still hopeful that sales of vehicles tailored for the construction industry will hold up this year, even as they anticipate a shift in demand in response to prevailing market sentiment. Thomas Rothe, general manager, Commercial Vehicles Sales & Aftersales at Gargash Enterprises, the UAE dealer for Mercedes-Benz
commercial and heavy vehicles, feels that despite challenges, 2016 will not be totally without positives. Citing the depressed oil price as the biggest economic hurdle for the region, he said, however, that it will be smoother sailing once this impediment is out of the way. “We are coming from an excellent year in 2014, and 2015 was also not so bad. But 2016 is a bit more challenging,” Rothe says. “I wouldn’t paint it too bleak as of now, but it’s definitely more challenging due to the political unrest in the region and worldwide, and also the oil price, which cuts down public spending. But we feel that the moment the oil price picks up, especially in this region, the market will pick up. I think this is going to happen in the second half of this year.” “Also, with the Expo 2020 ahead, the government has a tough timeline to complete all the projects they need to deliver. This year, there will be a little bit of a slowing down. They have to make that up in the years to come. So even though it is a bit of a slow year this year, it will pick up towards the end and then it should be fine all the way to 2020. “There definitely is uncertainty, and the oil
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Despite the current slowdown, heavy construction vehicle suppliers such as MercedesBenz have a positive outlook for the road ahead.
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ConstruCtion vehiCles M ARCH 201 5
price can be complicated by Iran as they are also sitting on a lot of oil. But low oil prices are not in the common interest of all the major producers in the region in the long term. So it has to increase a bit.” Speaking about demand for MercedesBenz’s commercial vehicles, he feels the market for heavy equipment is holding up, especially because of demand from suppliers of raw materials to the few large infrastructure projects continuing apace in the region. Examples are the quarrying and crusher businesses in the Northern Emirates of the UAE. “One factor that the crusher and quarrying business is dependent on is what’s going on with the World Cup in Qatar. A lot of crusher material from the Ras Al Khaimah and Fujairah goes to Qatar and also to Oman and Abu Dhabi. Qatar, as we know, has a timeline to fulfil – the year 2022 sounds far away, but when you imagine what they have to build, then the pressure is on for them as well,” Roth says. “So it will pick up further in the second half of the year.” “Mercedes-Benz is the only maker in the market with two products in the segment. The customer can choose between the
Heavy trucks are still in demand at quarries in the UAE’s Northern Emirates that supply Qatar’s World Cup 2020 projects.
rugged eight-cylinder and six-cylinder models with PowerShift of our Actros and Axor ranges, which are as adept at travelling the short distances needed for taking the heavy loads out of the quarries as they are at taking the crusher material and driving long distances to Oman and Abu Dhabi. Coupled with our legendary reliability, this gives us an edge in the segment.” However, Roth admits that most of the market has become price-sensitive, especially on the transportation side. For this segment, Mercedes-Benz has recently introduced the Atego and Accelo range of medium-duty trucks. “Mercedes-Benz has a huge product portfolio, but we were never able to compete in the light- and medium-duty segment here. Despite excellent quality, we were not competitive here against Japanese and increasingly Korean and Chinese products. So that’s why we decided to look into Daimler’s portfolio worldwide, where such trucks are available and which can be positioned competitively,” he explains. The Atego and Accelo are assembled in Brazil, where they have a huge market, making them well-proven trucks. The
prevailing market conditions in the GCC were right to bring them here, Roth adds, where they can be added to the MB portfolio and enjoy the quality reputation the brand has in the market, albeit at a value point to suit the times in a very price-sensitive market. Filling the gap Another brand looking to capitalise on the market situation is Belarus-based MAZ Trucks. According to Romieo Amarose, GM at Express Heavy Equipment Trading & Leasing, the UAE dealer for MAZ, quality trucks at more affordable prices are what customers in the construction sector are expected to lean towards. Pointing out the gap between Chinese and Indian manufacturers on the lower end of the market and the European high-value vehicles on the other, he says MAZ is looking to position itself as a mid-level manufacturer in terms of both quality and price, in order to fill that gap. Introduced in the UAE in the third quarter of 2015 by Express Heavy Equipment, the brand has already found traction in the market with sales of more than 10 units of its 4x2 models for container transport. The brand has a long history in the heavy vehicle market, especially
“With the Expo 2020 ahead, the government has a tough timeline to complete all projects they need to deliver. So even though it is a bit of a slow year this year, it will pick up towards the end and then it should be fine all the way to 2020.”
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in Eastern Europe, having been founded in 1944. According to Amarose, the company has also sold many units in North African markets and its trucks are well adapted to the tough operating conditions in the Middle East. For the construction sector, MAZ offers trucks mounted with tippers or concrete mixers. Amarose anticipates that the 6x4 models will be the most in demand for construction applications. “Now our priority is to ensure the availability of the spare parts throughout the region. We have a 100,000sqf [9,290sqm] facility where our spare parts are currently housed in Dubai Investments Park, opposite to the Expo 2020 site. We also have our own facility in Jebel Ali Free Zone.” MAZ dealer Express Heavy Equipment is also in the process of appointing channel partners in different emirates within the UAE to stock parts. The company also has an office in Qatar and is in talks to take on the dealership for MAZ trucks in Saudi Arabia, Amarose says. Sales projection for MAZ’s first financial year in the UAE is between 100 and 120 units, according to Express Heavy Equipment, with plans to increase this figure in the following years. The company, which also sells diesel generators and air compressors, plans to leverage its existing service network throughout the emirates and has recruited service managers with extensive experience in heavy vehicles for its after-sales team. As part of its strategy to target the construction sector, it plans to offer vehicles on trial to different companies.
Bullish bodybuilders Apart from dealers, bodybuilders also have an optimistic outlook for 2016, although enthusiasm over sales of construction vehicles might be a little subdued for some. “I personally feel the outlook for 2016 is positive for Gorica, because we do not depend only on one sector,” says Domen Bockor, general manager – sales and marketing at Gorica Industries. Gorica supplies products to five verticals – construction, logistics, food distribution and processing, waste management and municipal vehicles, and oil & gas. “The construction industry might be a bit down in 2016, but we still see many current projects already awarded,” Bockor says, noting that he expects demand from other industries to make up for a possible decline in the construction sector. In the construction sector, the company is a market leader in the supply of tipper trucks, as evident by the prevalence of Gorica tippers on roads throughout the GCC, he says. The Dubai-based firm currently has five production facilities in the emirate, with three factories in Jebel Ali Industrial Zone 2 and two new factories in up-and-coming Dubai Industrial City. “We also have a factory in Oman on a smaller scale and one in Qatar,” Bockor says, explaining that Gorica’s competitive advantage derives from the advanced technology and equipment in its production facilities, enabling it to manufacture quality products and be flexible in terms of output when high capacity is needed. Another tipper manufacturer, the UAE’s Bion
The flight to value in the market has seen greater activity in the midlevel segment, with brands such as the Belarusian MAZ.
Industrial, is also ramping up its offering for the construction sector. The Dubai-based firm, which recently introduced an expanded range of tipper trailers, covers five GCC markets: the UAE, Qatar, Oman, Kuwait and Bahrain. To keep up with market demand, the company is looking to increase production to 1,500 tippers per annum this year, following the opening of a new 46,000sqm manufacturing facility in Dubai Industrial City. Bion Industrial’s recently launched tipper range includes the B 460 tipper trailer with a 46cbm capacity, specifically developed to transport sand, gravel, aggregate, rubble and debris. Its body is made of carbon steel plates, designed to enable greater durability and strength. Another highlight of the product range is the B 320 tipper trailer with a 32cbm capacity, with a body made of MS mild steel and a curved bottom design for quick material discharge. Bion Industrial takes into consideration feedback from the industry on how its products can be improved and made safer, says Noas Badrawi, chief executive of the Bion Group. “It’s been challenging trying to distinguish ourselves. [But] we are not really competing with the rest of the market. We compete more with ourselves.” The main requirements of construction industry customers when it comes to vehicles are durability and naturally minimal downtime, notes Bockor. The type of component used is also important. “All our components on the trailers, like axles, hydraulics and so on, are generally from our European suppliers,” he says, noting that the company sources minimally from Asia, further giving customers confidence in the quality of its products. It is perhaps this very confidence that has led to growing tipper sales for Gorica in GCC markets over the past few years. “It’s been really positive for us in the past few years on the tipping semi-trailer application, and we’re very hopeful that it will continue.” Looking ahead, Bockor does not anticipate high growth, but expects it to be sustainable, fuelled by projects already awarded by the government and private sector firms. However, the outlook is positive over the long term. “A growing population in the Middle East requires growing infrastructure, which means more roads, more housing, more shops, offices and so on. We’re hopeful that we’ll have sustainable growth in the construction industry, but nevertheless other industries, like waste management, food processing and distribution and logistics, will also grow at a higher pace.”
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THE LAST WORD M ARCH 2016
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