ISSUE 48 2015 OCTOBER
ON ThE RiSGE
RAW POWER NE W S ANAlySiS ONl iNE ThE l AST WOgRd k i T SP O T T iN E S NE W RElE A S ORE A Nd MUCh M
IN dISCOv ERICA’S FR NORTH A CT uRE u INFR ASTRTEN TI A L PO
NERS N U R T N O R f T R O ExP HI TA LkS
HITAC G A Nd N I T R O P X E OLOGy N H C E T NEw
g N i O g d N U O R g R E d UN
ing r o b l e n t un
ING C A F S E G EN L L A H C E TH G N ES I R N I O H L C P A EX m NG I R O b L E T uNN
2
CONTENTS
OCTOBER 2015 09_NEWS The latest news from across the region and further afield.
16_NEWS ANALySiS Overcoming the risk of cybercrime in the construction sector.
18_hEAvy hiTTERS: ExPORT FRONT-RuNNERS
24
Hitachi’s focus on innovation and adopting new technology.
14 IN Sp oT TeD o CHICas G d been erecte
24_gOiNg uNdERgROuNd Industry professionals deliberate the tunnel boring challenges facing mega projects in the Middle East.
32_LEAdiNg ThE WAy A visit to ALEC and an exclusive interview with Mark Oberholzer, PMV manager, and Barry van Dyk, cranes and equipment manager.
14
R 415 h a A Potain M entral the city ’s c on one of ting ng an exis streets, usi on. a foundati building as
38_ON ThE RiSE CMME discusses the North African construction market with leading machinery and equipment manufacturers.
r e w o raw p EL 46_ NEW R The latest
E A SE S
d of m the worl releases fro
51 _TOP TE r Ten tips fo
N
avoidin
ry.
n machine
constructio
e and st g cybercrim
32
o aying safe
nline.
TOP ShOP leading industry figures at 56_ONE-S ith et trends w
new mark Discussing ast 2015. g Middle E n li d n a H Materials
ugh EAkThRO ore R b E T A m LTi s 3.34km b 64_ThE u s complete ing System
ll cht Tunne Herrenkne orus. nbul Bosph under Ista
56
38
POWER OUTSIDE,
COMFORT INSIDE
powerful performance Best-in-class breakout forces increased lifting capacity
comfort driven productivity 25% more space in the cab controls at the operator’s fingertips
outstanding visibility Clear line of sight all round and to bucket cutting edge
excellent serviceability Ground access to all service points easy to open tilting cab
4
ONLINE OC TOBER 201 5
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
Crane collapse: Saudi Binladin Group barred
from new projects Construction giant’s executives not allowed to travel after Mecca tragedy in which at least 107 died. PHOTO GALLERIES
2
Mecca crane “could not withstand intense winds”
Crane was reportedly fixed to the ground with four 1000-tonne foundations.
3
ConstruCtion underway at dubai’s Marina Gate A visit to the under-construction mixed-use The Residences at Marina Gate development. See photo galleries at: meconstructionnews.com/photos
Mecca crane collapse: Saudi king promises public
Craig Smith-Jones, comment to story ‘Mecca crane collapse: Saudi king promises public investigation’
investigation King Salman visits the Grand Mosque.
4
Dubai’s $272m Mall of the Emirates
READER POLL
Can Dubai sustain another ‘megaproject’ like Meydan One?
expansion completes The UAE-based retail giant
22% 25%
Majid Al Futtaim is set to open the mall’s 36,000sqm retail extension on September 28. VIDEO
5
Cityscape: $5.4bn Sharjah Waterfront
City officially launched
nissan Patrol breaks world reCord in Jordan
agreements for two hotels to be
The Nissan Patrol has clinched a Guinness World Record for the fastest production car to ascend a 100m sand dune.
part of the upcoming project.
See videos at: meconstructionnews.com/videos
Sharjah Oasis Real Estate Development has signed
“The Mecca crane disaster was truly tragic and my thoughts go out to those involved. Those responsible – if indeed someone is at fault – should be brought to justice. And the construction industry across the Gulf certainly needs to take note of the safety issues raised. But Saudi Arabia’s quick action to investigate the incident, and disclose the results publicly, is worthy of praise – as is the speedy announcement of compensation to the families of the many victims.”
Yes: Demand is already there in the market
Yes: Build it and they will come
19%
33%
No: There is insufficient demand
No: The focus should be on affordable projects
Log on for the latest from across the Middle East construction sector. Write to the editor at contact@meconstructionnews.com
AFGHANISTAN FAMCO (Al-Futtaim Auto & Machinery Co. LLC) + 971 4 213 5100 (UAE) famco@alfuttaim.ae AZERBAIJAN Aztexnika Ltd + 994 502 452 555 A.Aslanbayov@aztexnika.az GEORGIA Elite Motors Ltd + 995 577 769 615 zantelidze@elitemotors.ge IRAQ Sardar Automobile and Machinery Trading Co. + 964 750 344 4701 ihsan@sardarmachinery.com KUWAIT Al-Zabin International Group Co. For Heavy Equipment + 965 2433 4721 alzabin@alzabinkuwait.com LEBANON AMTRAC (Abdelmassih Trading Company) + 961 3 425625 michel@amtrac-lb.com OMAN GENSERV (General Engineering Services Est) + 968 244 90755 sales@genserv-oman.com
LOADS MORE... and faster
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) + 966 12 680 4444 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 TURKMENISTAN Ez Aziya-Hyzmatdash + 993 124 37278 h.hangeldyev @aziya-hyzmatdash.com UAE FAMCO (Al-Futtaim Auto & Machinery Co. LLC) + 971 4 213 5100 famco@alfuttaim.ae UZBEKISTAN C&H International + 998 711 475 003 hojinhan88@gmail.com YEMEN Elaghil Trading Co + 967 1 207 470 elaghil@y.net.ye
The new L120Gz gives you loads more: more productivity, more fuel efficiency and more uptime. Engineered to give optimum bucket fill, the L120Gz delivers superior productivity, with the Z-bar lifting arm system working in perfect harmony with load sensing hydraulics and the Volvo attachment range. An optimised powertrain and Eco-pedal function contribute to outstanding fuel efficiency, coupled with easy service access, for lower VIDEO goo.gl/iVZ74Y
volvoce.com
operating costs. The new L120Gz – maximum productivity and optimum efficiency. Building Tomorrow.
6
EDITORIAL OC TOBER 201 5
GROUP GROUP CHAIRMAN AND 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
Technology and auTomaTion To dominaTe fuTure
CONSULTANT EDITOR
Attending Materials Handling Middle East 2015 provided a glimpse into the diverse and changing world of intralogistics, warehousing and supply chain solutions. As I discovered through a host of interviews with exhibitors from around the world, a new industry standard is compelling suppliers and manufacturers to engage in a technological and operational paradigm shift. A combination of increasing logistic complexity, changing governmental regulations and burgeoning automated innovations is starting to affect market demands. Looking to the future of materials handling, I agree with the majority of exhibitors who expressed their enthusiasm for the rise of technological automation in the warehouse. Indeed, many manufacturers and suppliers are already starting to cater to this demand in the Middle East. As the technology develops, the price of high-tech equipment decreases and new legislation on operating heights comes into effect, the upcoming growth and transformation of this market will be a key area to watch. Technological progress is also a focus point in this month’s CMME cover story about tunnel boring machines. With a rise in demand for tunnelling and drilling equipment in the Middle East, caused by
MARKETING & ADVERTISING
growth in underground infrastructure projects, sophisticated technological advancements are tipped to deliver ever greater on-site accuracy and efficiency. CMME explores the opportunity in the Middle East for such technology in upcoming underground infrastructure projects. At present, even the best ground report can never be 100% certain of what the machine will encounter. Considering the current and future high-profile tunnelling projects in the region, and bearing in mind the specific ground conditions, it seems necessary, even essential, for the Middle East to pioneer the research and development of this technology. As the new deputy editor of CMME, I would love to hear your thoughts on this month’s topics. Contact details can be found to the right of this letter. Thank you for reading. Speak soon. Stay lucky.
STIAN OVERDAHL stian.overdahl@cpimediagroup.com +49 176 271 203 87 DEPUTy EDITOR DAVID THOMpSON david.thompson@cpimediagroup.com +971 4 375 5715 SUB EDITOR AELRED DOYLE
COMMERCIAL DIRECTOR michael.stansfield@cpimediagroup.com +971 4 375 5497 MARKETING MANAGER
M
Y
CM
LISA JUSTICE lisa.justice@cpimediagroup.com +971 4 375 5498 DESIGN ART DIRECTOR SIMON COBON CIRCULATION & PRODUCTION DISTRIBUTION MANAGER SUNIL KUMAR sunil.kumar@cpimediagroup.com +971 4 375 5476 PRODUCTION MANAGER VIpIN V. VIJAY vipin.vijay@cpimediagroup.com +971 4 375 5713 DIGITAL WEB DEvELOPER MOHAMMAD AwAIS WEB DEvELOPER UMAIR SHAMIM PUbLIShED by
Registered at IMpZ pO Box 13700
David Thompson Deputy Editor, CMME
C
MICHAEL STANSFIELD
Dubai, UAE Tel: +971 4 440 9100 Fax: +971 4 447 2409 www.cpimediagroup.com PRINTED by printwell printing press LLC © Copyright 2015 CpI. All rights reserved. while the publishers have made every effort to ensure the accuracy of all information in this magazine, they will not be held responsible for any errors therein.
MY
CY
CMY
K
S W NE 8
SHARP FALL IN MACHINE ORDERS
JCB proposes 400 redundanCies
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 GLOBAL CONSTRUCTION
UK-based manufacturer JCB
RISK RISES
has announced that a rapid
The Construction
deterioration in world construction
Risk Index
equipment markets is behind up
(CRI), produced
to 400 proposed redundancies
by Timetric,
in its UK operations.
identified an
In a statement to KHL
overall rise in
International, an official JCB
the level of risk
representative said that a
in the global
slowdown in recent weeks has
construction
been marked, particularly in the
industry during
emerging markets, resulting in
the third quarter
a sharp fall in machine orders.
of 2015. The level
Employees at JCB have been
of risk rose to
briefed that positions are now at
its highest level
risk in the UK, and the company
in four quarters
has started a consultation
as a result of a
process with staff over the
worsening safety
proposed redundancies.
profile across
CEO Graeme Macdonald
Ritchie Bros. sells $42m of equipment, trucks at Dubai auction
most emerging
said: “Market conditions in the
markets, which
construction equipment sector
offset a marginal
have been difficult for some
improvement
time, but they have worsened
for advanced
quite rapidly in recent weeks.”
Construction-equipment auctioneers Ritchie Bros. says it sold $42 million of machinery and trucks at a sale in Dubai earlier this month. More than 2,600 items were sold in the September 8-9 unreserved auction, setting Dubai site records for the total number of bidders, at more than 920, and the number of online bidders, numbering more than 400. Used machinery sold at the auction included more than 100 excavators, along with compactors, telescopic forklifts, wheel loaders, cranes, loader backhoes, dump trucks and truck tractors, Ritchie Bros. said. “The massive selection of equipment in this week’s Dubai auction attracted
a record crowd of on-site and online bidders from 60 countries,” said Eduard Faig, Regional Sales Manager at Ritchie Bros. Auctioneers. “We sold items for more than 200 equipment owners from the Middle East and beyond. Particular strong performers in the auction were cranes, telescopic forklifts and backhoes,” he added. Bids were made in the auction in person, online and by proxy. Buyers from outside Dubai purchased approximately 45% of equipment and trucks, with equipment sold to buyers from as far away as Australia, Mexico and the United Kingdom. Online bidders purchased approximately 12% of the equipment.
economies.
“The situation is not about
Only 15
to improve, certainly not in the
out of the 50
short term, so we now need to
countries in the
take difficult but decisive actions
CRI recorded
to align overheads to lower
improvements in
sales forecasts. Regrettably,
their risk profiles
this will result in up to 400 staff
in the third
positions becoming redundant
quarter. Low oil
across our UK businesses.”
prices continued
Company performance across
to contribute to
the first six months of the year has
a worsening risk
seen the market in Russia fall by
profile for the
70%, Brazil by 36% and China by
Middle East and
47%. Strong growth in the UK and
Africa.
North America has slowed as a result of a fall in market confidence over the summer, caused in part by low oil and commodity prices. JCB said that it would attempt to minimise the impact by considering voluntary redundancies.
10
NEWS ROUND-UP OC TOBER 201 5
DOHA UNDERgROUND
Johannesburg Exhibition a Success
tunnel Boring provides modern drainage for doha KIpCO pLANS $5BN REAL ESTATE pROJECT IN KUwAIT Kuwait Projects Company (Kipco) is planning a $5 billion real estate development on
Bauma Conexpo Africa construction exhibition has been hailed as a success by event organisers, as the continent continues to experience growth. The Bauma Conexpo Africa construction exhibition was described as the continent’s most important event for the sector by the Association of Equipment Manufacturers (AEM) and Germany’s Messe München. Running from 15-18 September,
CONSTRUCTION fIRMS ACROSS THE GULf SEEK EMpLOyEES The UAE remains the most attractive market for talent, and the easiest market for hiring expatriate workers, according to a panel of human resource experts at a forum organised recently by Gulf Talent.
2015 in Johannesburg, South Africa, the exhibition attracted 14,300 visitors from 75 countries, in addition to 616 exhibitors from 42 nations. In a statement, Stefan Rummel, managing director of Messe München, said: “We have achieved our goal of welcoming more and higher-quality visitors from the SubSaharan region. Bauma Conexpo Africa has now without doubt
established itself as a platform for the industry that brings together African and international companies.” Megan Tanel, vice president for exhibitions, AEM, added: “Africa continues to be an important market for our North American equipment manufacturers. Bauma Conexpo Africa is the event not just to enter the market but also to engage with existing customers.”
the outskirts of
Tunnel excavation of the large-
Kuwait City, the
scale Abu Hamour Southern Outfall
company’s vice
project has been provided by two
chairman told
EpB Shields from Herrenknecht,
Al Qabas
each machine completing 5km of
newspaper in
tunnelling before breaking through
an interview on
the target shaft in quick succession.
Sunday.
The new sewage tunnels are
The proposed
important to better protecting the
construction
city and the inhabitants of Doha
project covers
from floods after heavy rainfalls.
380,000sqm and
The two TBMs have a diameter
is planned for
of 4.47m and required 12 and 14
the Al Daiya area.
months respectively for their tunnel
Once completed,
sections. Under the guidance of
the project
the construction company Salini-
will include
Impregilo, they achieved up to
residential and
165m of tunnelling per week.
commercial spaces.
At a depth of around 30m, the EpB method proved the optimum choice to master the cohesive soil with its high proportion of rock in Doha. The TBMs were designed with a special cutting wheel with a large opening ratio to achieve efficient material excavation.
T ERE X S UPERLIF T E IC 3800 L AT T LER W BOOM C R A ONC RE T E C TS CR A NE LIF GERM A N Y BRIDGE IN m crawler
ttice boo ed lift 3800 la er p Su ex that spann er The T ete bridge cr n co e b t 78 to lifted a at used crane has joined wh d an r s ve ri at r bo zbach s before rive the Schwar om the day fr s mited h li at y p el w two to The extrem . es in g en ng company started usi reason the e n o as w lable 0 crane for space avai perlift 380 Su e th se u bled decided to was assem . The unit 0 2 the project ex AC 0elp of a Ter with the h n crane. 1 all-terrai
11
Magirus forecasts ME sales growth Magirus is preparing for a rise in Middle East orders as key international events draw closer. The Middle East already represents a strong market for German fire truck manufacturer Magirus, whose managers have discussed with CMME the anticipated growth in orders stemming from
upcoming international events in the Middle East. Tristan Reitz, team leader of sales and order administration export at Magirus, spoke with ME Construction News, pinpointing Expo 2020 and the 2022 World Cup as the key events in the region representing significant opportunities for sales
growth in firefighting machinery. “Magirus has defined standard vehicles for the Middle East market, capable of maintaining optimal performance in the unique conditions created by the local environment. The near future holds many interesting opportunities
GROvE GMK6400
SALES tURNAROUND
liugong: Chinese equipment market is Close to the Bottom
CRANE DELIvERED TO LONDON London crane
for us to demonstrate our capabilities.” Global expansion saw Magirus witness 104% growth in order intakes between 2010 and 2014, adding to the existing customers based throughout the region. Reitz added that the Middle East has been a key growth market for the organisation since 2013, a trend he anticipates will continue. Suitable to the specific firefighting requirements of the region are numerous aerial vehicle designs, appropriate for high-rise buildings. Magirus has a manufacturing capacity of 2,000 fire trucks per year and holds the world record for the longest turn table ladder, reaching 68m.
LAfARGE wINS READy-MIx CONCRETE CONTRACT fOR DOHA METRO pROJECT Lafarge has been chosen as a ready-mix concrete supplier to the Doha Metro project, an official press release stated, supplying daily demand for ready-mixed concrete of more than 2,000m3 until completion in 2019. The Saudi Binladen Group, the main contractor overlooking the construction of the project, selected Lafarge as the concrete supplier for the 300km project, due to their experience on projects of a similar scale.
Al Khalij Cement to supply Qatar demand
rental company following declines in sales
stronger and the weak
City Lifting has
this year, Liugong chairman
companies will get weaker.”
purchased the first
claims a market turnaround
Speaking on the perceived
Grove GMK6400
conservatism in investment
crane in the UK.
in the boom years up to
The six-axle crane
equipment sales
2011, he stated this period
will help the
experienced a steep
was now serving the
company meet
decline this year, but one
company well. Mr Zeng
increased customer
of the country’s leading
also claimed that “many
demand for higher
manufacturers, Liugong,
companies over-invested”
capacity cranes.
believes the end of the
in Liugong, adding that
downturn is in sight, with
five years ago people said
is currently the
A $219m investment in a new
2016 presenting recovery.
Liugong was moving too
strongest mobile
cement production line has
Cement Company COO, said,
slowly, but today Liugong
crane on six axles,
been confirmed by Qatar’s
“The unprecedented growth
is a strong company.
and the new
Al Khalij Cement Company,
in Qatar’s construction
design features
in a bid to cater to the
remains as the primary motive
is coming in 2016. Chinese construction
Liugong Group chairman Zeng Guang’an spoke with KHL International, saying:
In response to the present
The GMK6400 Jose Escalera, Al Khalij
“I think we are very close to
sales slowdown in China,
allow it to complete
growing demand for cement
of all companies to place
the bottom of the market
a priority for Liugong is to
many of the jobs
on construction projects in
more efforts in improving
in China. It may drop a little
build its overseas business.
of a seven-axle
the country. The new line is
their products and services to
next year, but then it will
Europe will be a key
crane.
expected to be operational
meet the terms of this growth
pick up. The problem is
focus over the next year,
by the first quarter of 2016
and support it, with emphasis
that the machine population
according to Mr Zeng, as the
and will increase cement
on quality and effectiveness
is very high. I believe
company looks to
production by 50%, according
factors. This has prompted
some companies will move
build on its acquisition
to an official statement from
Al Khalij Cement Company
out of the industry. The
of polish dozer-
Firas Tayssir Ibrahim, chief
to increase its production
strong companies will get
maker Dressta.
administration officer of
capacity to cope with the
Qatari Investors Group.
increasing market demands.”
12
NEWS ROUND-UP OC TOBER 201 5
gREEN tECHNOLOgY
stall in adoption of green ConstruCtion vehiCles
Diesel generator market in Saudi Arabia to reach $709 m
According to a
meaning that hundreds
statement released on
of billions of dollars
September 30, MAN
of some of the most
Truck and Bus has said
dynamic and exciting
regulations making
projects in the world
green technologies
are in the pipeline.
mandatory will be
from an economic
KANOO
required for the
point of view this is
MACHINERy
region to achieve
extremely positive, but
pARTICIpATES
sustainability amid
the increased number
IN MATERIALS
a raft of planned
of vehicles that will
HANDLING MIDDLE
construction projects.
be used to construct
Dr. Richard Brown,
them is set to place
EAST 2015 Kanoo Machinery
head of product at
an enormous strain
participated
MAN Truck and Bus
on an already fragile
in this year’s
Middle East and Africa,
environment,” he said.
Materials
said that the latest
Handling Middle
environmentally
an ideal opportunity
“The industry has
East 2015 show
friendly vehicles are
to offset this impact
The diesel generator market in Saudi
employed HIMOINSA generator sets
at the Dubai
available, but that
through the use of
Arabia will reach $709 million by
to supply energy to the projects.
International
the market has so
green construction
2020, with the residential sector
In the past 19 months, HIMOINSA
Convention
far been reluctant
vehicles, but without
representing 30% of the market, a
generator sets represent a 7% share
& Exhibition
to adopt them.
regulations to govern
Himoinsa press release has reported,
of the total market for generator
Centre, and
“The construction
their use there is
citing TechSci Research as the source.
sets in Saudi Arabia, with 7 out
focused on
industry in the GCC is
little incentive to
of every 10 lighting towers sold
highlighting
undergoing a revival,
do so at present.”
Centre and West areas of Saudi Arabia
by HIMOINSA in the Middle East
the importance
as those with the greatest demand
sent to projects in Saudi Arabia.
of warehousing
The report highlights the North,
for diesel generator sets, identifying
Generators used in Saudi
solutions.
these areas alone as representing
Arabia are designed to work in
Participating
56% of the diesel generators
extreme conditions, withstanding
members of
market in Saudi Arabia in 2014.
temperatures of 50ºC. Desert
Kanoo Machinery
areas require special working
presented their
Bahrain with Saudi Arabia, as well
conditions, including humid
full product and
as the construction of the Makkah-
and dusty environments, factors
service offering
Medina high speed railway, have
that can affect operations.
to customers.
Construction on the bridge linking
NE W COMPAC T ER L OA D BACk hOE BY JCB UN v EILED X Compact,
e 3C unched th ween JCB has la balance bet a e d vi ro p to ed sponse to design ibility in re ex fl d an th streng nfined and today’s co f o s d an the dem ts. The new environmen rk o w g in e 3CX (the challeng ler than th al sm % in 35 JCB is ring 1.9m ion), measu rs ve s u a o previ eight, with 2.74m in h width and .8m as a le of just 5 turning circ l w s four- hee result of it . g n ri (4x4x4) stee
US CONSTRUCTION EqUIpMENT ExpORTS DROp 17% Exports of US-made construction equipment declined 17% for the first half of 2015 compared to the first half of 2014, with a total value of $7.4 billion shipped to global markets. Declines have been experienced in all world regions, led by Africa, according to the Association of Equipment Manufacturers (AEM).
14
Potain MR 415 negotiates ChiCago City stReets Construction work in a busy city like Chicago requires ingenuity, as there just isn’t much space to erect equipment, especially a crane. However, by employing a tie-in solution, a Potain MR 415 has been erected on one of the city’s central streets, using an existing building as a foundation. Construction began in 2014 to make better use of the space, adding a 34-storey apartment building on top of the existing five-storey complex. In June 2014, the Potain MR 415 began lifting work on the tower. Known for its versatility, the MR415 allows crane bases to be interchangeable with Potain’s MD and MDT cranes, enabling several different internal and external climbing crane configurations. The tight working quarters required the use of a luffing tower crane, and the MR 415 was an ideal fit with its 26.5t capacity. With a lack of space below for a spread foundation, the crane was tied in at the fifth floor, at a height of 24m during the initial assembly, to reduce the foundation reactions. The MR 415 has been lifting construction materials for the job, the heaviest being 10t at heights of up to 142m. When complete, the new apartment building will have 690 apartment units, making it one of the tallest apartment buildings constructed in Chicago’s Loop in decades. The structure will include an outdoor pool and spa, rooftop spa and fitness centre.
16
NEWS ANALYSIS OC TOBER 201 5
the rise of cybercrime
DaviD Thompson investigates cybercrime in the middle east and analyses the steps construction companies can take to stay safe
c
onstruction machinery companies in the Middle East areparticularly at risk of being targeted by cyber criminals given that many of their larger payments are conducted via electronic transfers. It has been estimated that the global economic cost of combating cybercrime could reach $400 billion, according to a 2014 report entitled “Net Losses: Estimating the Global Cost of Cybercrime”, published by the McAfee Centre for Strategic and International Studies. The study suggested most countries, governments and companies underestimate how much risk they face from cybercrime and how quickly this risk can grow, claiming that potential global losses caused by cybercrime are estimated to be $375 billion annually, while the maximum could be as much as much
$575 billion. The challenges of cybercrime are more than economic; they are compounded by the networked nature of the issue. Today’s interconnected business environment increases an organisation’s vulnerability to security attacks, as security is no longer confined by the boundaries of a single company but transcends them to be dependent on all those operating on the same network, claim Zhao et al in the Journal of Management Information Systems. On 25 August, 2015, CMME obtained an exclusive interview with Joe Lahoud, general manager Construction Machinery Centre Co LLC (CMC) in the UAE, who had recently been the victim of fraud. He acknowledged an “increasing trend” whereby hackers are creating email addresses and website domains similar to those used by genuine company representatives and communicating with customers and suppliers directly. Mr Lahoud referenced a particular case in which a hacker accessed a customer’s private email account and developed an online correspondence impersonating a CMC representative. CMC happened to be expecting an authentic five-digit euro transfer from the customer. Believing the hacker’s messages to be genuine, the customer’s accounting personnel initiated the transfer to a new bank account advised by the hacker. This instance of cybercrime took on a new dimension. Instead of taking advantage of a deficiency in a security system, as mentioned in the Journal of Management Information Systems, the fraudulent individuals were actively developing websites and email accounts realistic enough to fool customers into transferring large funds. This tactic is known as social engineering, with con artists concocting ingenious schemes to trick people into giving up personal information or visiting websites that download viruses. “I strongly advise you to review your security measures and money transfer procedures. We need better data protection, both at the individual corporate level as well as societal government level, but we also need better detection and response,” commented Mr Lahoud.
17 This type of cybercrime demonstrates the levels of ingenuity criminals possess, but perhaps the most common and most worrying security risks come from within the organisation itself, suggests Mark Button, director of the Centre for Counter Fraud Studies, University of Portsmouth, UK. “It takes a lot more sophistication to actually hack into a company website, and of course, there are very many skilled computer operatives capable of doing such work. However, there are a lot of very simplistic security issues that can cause equally traumatic threats to a company. These include simple measures such as changing default passwords; an easy way to prevent people entering through legitimate portals and making changes without detection. Another simple online security threat is a corrupt member of staff. This could be a disgruntled employee who decides to give away confidential information, thus highlighting the need to regularly change all passwords.” Having a thorough awareness of online security strategies, combined with vigilance, is the key to preventing online cybercrime, suggests Button. “I think organisations are waking up to the possible risks and attacks. This realisation will bring much greater interest in developing the best strategy to counter the present threats. Equally, you have lots of individuals who are of a corrupt nature, and they are realising that there is a large potential from these type of criminal attacks. Not all require high levels of education or skill. If you can just get one corrupt insider to allow you access into a laptop or computer system, to share a password or ID number, you simply don’t need extensive or significant PC hacking skills to earn big rewards.” Reports of similar incidents in the construction industry are not uncommon. Finnish crane maker Konecranes experienced fraud when $19.2 million was stolen from one of its foreign subsidiaries. Konecranes said perpetrators used identity theft and other methods to induce the subsidiary to make unwarranted payments. A similar attack targeted Komatsu, when a fraudulent website was created, posing as a Komatsu Group Company website and asking people to provide personal information in order to apply for false employment opportunities. Ultimately, preventing cybercrime comes down to strategy. If an organisation has the resources, then it needs to invest in someone appropriate for the task of protecting their assets online. “This is all about organisation and
strategy. The person who really understands the full range of risks is able to help the firm develop the most resilient strategy,” Button continues. “An organisation can go to the most expensive IT company that provides very technical skills to detect and block attacks, but if they don’t cover the staff, who can be turned or tricked, then they’re missing out on a vulnerable point of entry.” thE orIgINS of hAckINg
a brief history of cybercrime The term ‘hacking’ purportedly originated in the 1960s at MIT in the United States. Early hackers worked with computer systems to change the computer code that was used in early programs. At this time a hack became known as a clever way to fix a problem with a product, or an easy way to improve its function. In the 1970s, the malicious association with hacking became evident. Early phone systems became a target when technologically savvy individuals discovered methods that resulted in free long-distance phone calls. As more complex communications became available to the consumer, more opportunities for cybercrime ensued. In 1986, following irregularities in accounting data at the Lawrence Berkeley National Laboratory, it was discovered that a number of hackers in West Germany were stealing and selling military information, passwords and other data to the KGB. In 1990, FBI agents confiscated 42 computers and over 20,000 floppy disks during a project known as Operation Sundevil. Stolen data was allegedly being used by criminals for illegal credit card use and telephone services. In the years that followed, the sophistication and ingenuity of cybercriminals developed exponentially. An arms race ensued, with universities offering higher education courses in online security and public and private sectors investing ever greater sums of money to keep pace with the hackers.
18
HEAVY HITTERS OC TOBER 201 5
Export front-runnErs Market leaders HitacHi construction MacHinery corporation Have MacHinery Manufacturing operations tHat rely Heavily on exporting. tHey talk witH CMME about tHe need to innovate and tHe iMportance of adopting new tecHnology
H
ow did a country that has few mining resources become a leading exporter of mining equipment? With the exception of gold and zinc, Japan’s ore reserves for other minerals, especially oil, gas and metallic minerals, are very low. Despite this fact, Japan has developed a reputation for the export of construction and mining machinery and equipment, and according to Mr. Piet Hein van Bakergem, general manager of Hitachi Construction Machinery Middle East Corporation, the Middle East is proving to be a lucrative market for the sector, offering positive future growth potential. Hitachi Construction Machinery Middle East Corporation (HMEC) is 100% invested and incorporated by Hitachi Construction Machinery Co, Ltd, Japan, Piet explains, providing products and support for the mining, earthmoving, construction and quarry industries throughout MENA. Hitachi is a well-known brand in the mining industry, Piet explains, known for its tough, productive and efficient machines. “Major mining customers prefer Hitachi machines to other leading brands for its competitive advantages, including low running cost, high productivity, low fuel consumption and their durability.”
19
The Hitachi EX1900-6 builds on the productivity of the EX1800 and EX1900-5, and includes the latest shovel innovations and technology.
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HEAVY HITTERS OC TOBER 201 5
“If we focus on demand in the MENA market, recently Hitachi has fulfilled orders for EH1700-3 haul trucks and EH3500AC-3 dump trucks in Turkey and EX1200, EX1900 excavators in Turkey and Qatar.” He explains that for years, the Hitachi EX1800 was the industry’s leading 180t shovel. Now, the EX1900-6 builds on the productivity of the EX1800 and EX1900-5, and steps it up to a higher level with the latest shovel innovations and technology. The Middle East market represents a critical opportunity to Hitachi’s overall success. Middle East mining has big potential in the near future, Piet says, citing government projects in the region as drivers for natural resource demand. Hidefumi Sameshima, president of HMEC Corporation, takes this opportunity to reveal in greater depth the wider regional importance of the Middle East in Hitachi’s growth. “Hitachi Construction Machinery has a great opportunity to grow in this region in the upcoming years. The HMEC Turkey
Branch territory is in the middle of several long-term, enormous projects such as Istanbul’s Yavuz Sultan Selim Bridge Project – the third Bosphorus bridge – in addition to Turkey’s new underground rail network and tunnel connections crossing the Bosphorus, and the New Istanbul Airport project, which has been hailed as Turkey’s biggest project.” Construction equipment and machinery production growth in Japan developed with the support of construction investment accompanying the high level of growth of the Japanese economy from the 1960s to the 1980s. However, the industry became sluggish by the late 1990s, due first of all to the oil crisis followed by the collapse of the bubble economy, and then to the impact of the Asian economic crisis. Hidefumi says, “Currently, HMEC is seeing increasing business environments in countries like Saudi Arabia, the GCC countries, North and East Africa and the UAE. With the range of our products suited to the region, HMEC has the opportunity
To better serve mining customers, Hitachi has invested in several new factories near the Hitachi-Naka port in Japan. One is devoted exclusively to large excavators and rigid-frame haul trucks.
“Major mining customers prefer Hitachi machines to other leading brands for its competitive advantages, including low running cost, high productivity and low fuel consumption”
to make a huge impact. Our dedicated Dubai and Istanbul staff and our dealerships will support the Hitachi Brand, resulting in continued success.” Piet develops these thoughts, speaking of the vast possibilities in development that the MENA territory has to offer. He cites major infrastructure projects, including ports and railway networks at various redevelopment stages, as increasing all general earthmoving on- and offshore activities. “In addition, HMEC is scouting for fresh dealerships in the MENA territory, adding to HMEC’s overall positive market share position,” he adds. Japanese manufacturing and the construction machinery industry are greatly diversified, according to the Japan Country Report by Global Finance, with the manufacturing industry accounting for 24% of the nation’s GDP. As Piet reveals, innovation is central to this strength. Japan now enjoys a reputation for being technologically advanced in many manufacturing sectors. Looking to the future, he discusses the company philosophy at Hitachi, exploring the most important factors in Hitachi’s success, and discusses the role the Middle East will play in this story over the coming years. “Maintaining the heart of Hitachi ‘s trusted construction and mining equipment lies in the team of people committed to providing industry-leading machinery and solutions. Maintaining our philosophy, Hitachi supplies hydraulic excavators, wheel loaders and a variety of other construction machinery based on a philosophy of being active in the evolution of machinery and the synergy between human and business, that combines being environmentally aware, creating rich living spaces and making them more comfortable, highly developed and efficient. “Hitachi continues to deploy these products in both developed and emerging economies, with growing demand from regions where the pace of infrastructure development is picking up, such as the Middle East and Africa.” In addition to maintaining its position as a leader in manufacturing excavators, HMEC Group has also been manufacturing Hitachi Sumitomo cranes and Hitachi wheel loaders, and developing and m a n u fa c t u r i n g advanced technology in mining machines. Furthermore, due to increasing fuel prices, electric-driven excavators and AC-driven dump trucks have become popular in Indonesia, Australia, Norway, South Africa,
21
MACHINERY TIMELINE
a History of Japanese construction equipMent Japan’s construction equipment
use in small city environments, such
production started in 1945, according
as the mini excavator, increased.
to the Japan Construction Equipment
The 1970s saw the development
Manufacturers Association. In the
of new construction machines
1940s, initially for the restoration of
required for the creation of a better
land, mechanisation was implemented
city environment. New construction
for construction works. In 1948, the
equipment such as special attachments
Ministry of Construction budgeted
for the demolition of decrepit buildings
the construction equipment
in need of redevelopment was designed
maintenance expense and thus
and built. Advancements in new
initiated the full-scale development
materials and technologies led to
of construction equipment.
greater performance, and equipment
The Japanese economy entered a high growth period in the 1950s. The
of superior design started to emerge. From the 1980s up until the present
government executed public works
day, Japan’s construction machinery
focusing on the national life and the
production has been based on the
development and maintenance of
concept of “city harmony and user-
industrial foundation. Private enterprises
friendly machines”, with full-scale
also made sizeable equipment
development of equipment superior
investments during this period for
in design, comfort and controllability.
the improvement of industrial sites,
Greater attention to such issues as
construction of plants and maintenance
emission regulation and complete
of industrial waterworks, in which many
banning of CFCs has been central to
construction machines were used.
this phase of machinery development.
In the 1960s, Japan’s economy
Looking to the future, Japan’s
shifted from a high growth period
construction machinery industry aims
to a stable period. Construction
to continue research and development
equipment played an important role
on intelligent machines in its efforts
in bringing about a wealthier living
to develop unattended or remote
environment, and the development
controlled systems using artificial
of compact machines suitable for
satellites and telematics technology.
The EX8000-6 is Hitachi’s largest mining shovel and is powered by two Cummins QSK60C engines, generating 2900kW (3,800 gross horsepower), while meeting EPA Tier 2 emission regulations.
Zambia and Mozambique, Hidefumi says. “This advance in technology allows HMEC to offer a wider range of products to the customer. As we develop more cuttingedge technologies such as the use of GPS systems, HMEC will stay competitive and thrive in the MENA territory.” The story of Hitachi in the Middle East region was not always so positive. Some of the key challenges Hitachi has overcome in recent times followed the financial crisis in 2008, at which point, Piet notes, customers started to pay more attention to minimising operation costs. Overcoming this challenging period saw Hitachi start a process of optimisation which continues to this day. “Hitachi is focusing on systems to optimise mining itself by using fleet management systems,” he says, adding that Hitachi achieved top sales of fleet management systems during the last five years. Autonomous haulage systems (AHS) are another key challenge facing HMEC. AHS machines are directed by an automatic control system that guides and intelligently informs the machine what to do. Essentially, on-board intelligence systems enable a vehicle to decide how to navigate without the need for human interaction. As the market in the Middle East is growing
22
fUTURE CONSTRUCTION TRENDS HEAVY HITTERS OC TOBER 201 5
robotics Japan is challenging the future of the construction equipment industry by making efforts to embrace the
24%
increasingly warm towards as being necessary steps technological advances in to improve global fleet management, Hitachi competitiveness. Hitachi is well aware of the need to has also started investing in onal Share of nati maintain a market-leading asset health management n’s GD P o f J a pa position in this growing (AHM) in this pursuit. g and profitable market. AHM is the field of manufacturin “We are now testing it study which examines industry [AHS] in Australia with six how to manage the trucks, including three virtual health of an asset or group of trucks. There is a synergy of ICT assets, often including methods to technology being utilised by Hitachi establish the appropriate actions to be Group to achieve efficient developments taken to manage the asset’s health. This as we move towards achieving our also includes the discussion of health new challenge.” at end of life to ensure the asset’s full life AHS is reshaping the mining and is used efficiently. AHM enables Hitachi to construction machinery industry, with predict future conditions of construction benefits that include increased safety equipment by analysing data from on sites, reduction of incidents, reduced the machines. number of drivers working in dangerous “AHM will lead to higher availability, conditions, lower operating costs, increased optimised spare parts stocked in the site, productivity and efficiency and reduced fuel efficiently scheduled maintenance, in consumption and emissions. addition to promoting fuel efficiency and Developing and adopting these new increasing the lifespan of components,” technologies are accepted by Hitachi Piet concludes.
mechanisation of various types of construction work, according to Japan’s Construction Equipment Manufacturers Association (CEMA). An emerging trend worldwide, machinery automation presents a challenge to new technologies in the construction sector. Future construction equipment will include machines for use underwater and in disaster areas, robots for dangerous work and easy-torecycle construction equipment. Computer-assisted analysis on the EX8000-6 is used to ensure the frame box can withstand heavy-duty excavation work. The machine’s track frame, which is used exclusively on large Hitachi models, is cast as a solid unit and includes a flange for improved reliability.
Japan was the first in the world to apply radio guidance and ranging systems using a satellite to construction machines including bulldozers and hydraulic excavators. Developing intelligent robots is the next stage in the construction equipment industry’s tech boom. Construction robots that operate and make decisions on their own are expected to arrive in the near future, as are technologies that correspond in detail to various project purposes on all kinds of construction sites. Japan is also challenging the
“Hitachi Construction Machinery has a great opportunity to grow in this region in the upcoming years”
way we look at recycling by initiating the development of easy-to-recycle construction equipment. The construction equipment industry in Japan is currently conducting research for easy recycling of construction equipment from the development, design and production stages.
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24
Tunnel Boring Machines OC TOBER 201 5
CMME meets with industry professionals to deliberate the tunnel boring challenges facing mega projects in the middle east, and discusses the future technological developments for tunnel boring machines
GOING UNDERGROUND
25
The Middle East is quickly becoming a key region for the growing TBM industry, as its countries continue to experience rapid expansion and urbanisation of their populations.
A
tunnel boring machine (TBM) cannot begin work on a new project until it has been given a name, according to tunnelling tradition. This is practised throughout the world as a sign of good luck for the project ahead. The Middle East is set to name many TBMs, as the region is quickly becoming a key market for tunnelling and drilling equipment – underground infrastructure is a growing industry, according to a 2015 report by the International Quality and Productivity Centre (IQPC). As the region continues to expand rapidly, in addition to development and urbanisation schemes, key cities are becoming congested and infrastructure construction is increasing. According to the IQPC, the UAE in particular is a critical driver of the industry’s growth, aiming to spend approximately $329 billion on a variety of national infrastructure and urban construction projects over the coming 15 years. Furthermore, the report claims that in 2013, the global tunnelling and drilling equipment market was valued at $16.5 billion with a CAGR rate of 4.86% from 2009-2013, noting specifically that Asia Pacific remains the largest regional market. In order to meet the increasing demand on the existing infrastructure, in addition to addressing spatial limitations in developed cities and population growth, sustainable and energy-efficient cities have become a necessity. This has led to the construction of below-ground facilities like tunnels and underpasses. Throughout the Middle East, the technical requirement for the use of tunnels for major infrastructure schemes is becoming more apparent, resulting in almost $300 billion being spent on proposed rail and water projects. These projects include the Riyadh Metro, the Makkah Metro, Dhammam Metro, the Dubai Metro Extension, the Abu Dhabi Metro, Etihad Rail Phase 3 Extension, Oman National Railway project and the Dubai Strategic Sewerage Tunnels, to name just a few. As these mega projects get underway, CMME caught up with two industry professionals to discuss the challenges and opportunities facing the variety of operations conducted by tunnel boring machines in the Middle East. Dr Kamiran Ibrahim, Qatar managing director of Arcadis, shares his thoughts on how ground conditions influence the projects undertaken, and how his team works to predict and overcome problems facing TBMs. “The construction of projects with tunnelling components is
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Tunnel Boring Machines OC TOBER 201 5
$329BN
wasTewaTer challenges
tunnel boring projects in abu dhabi Of the numerous large-scale underground infrastructure projects underway at present in the UAE, the Abu Dhabi Strategic Tunnel Enhancement Programme (STEP) project is noteworthy for the ambitious nature of the tunnel boring operations. Featuring 84km of sewage collection tunnels leading to treatment plants in Al Wathba, the system has involved the construction of a 41km-deep sewer tunnel, supported by 43km of supply tunnels which are smaller in diameter and designed to carry the wastewater away to the treatment plants. The project was initiated in 2009, and is estimated to be completed in early 2016, with total project investment value topping $1.5 billion. One of the main challenges of this project was to achieve the proper sloping depth required to allow gravity to efficiently carry the wastewater, says an IQPC report on underground infrastructure projects in the UAE. In order to make this a reality, the use of advanced TBMs was required in order to reach a sloping depth starting at approximately 27m and reaching deeper than 100m. Three TBMs have been deployed for the various construction phases of the project. Once completed, the Abu Dhabi Sewerage Services Company’s capacity to handle wastewater will almost double, from 450,000m3 to over 80,000m3.
Two Herrenknecht tunnel boring machines are being deployed for a major drainage system in the Qatari capital of Doha. Construction of the almost 10km tunnel is part of major infrastructure projects.
challenging due to the ground, for example.” “You can tell from risks involved, which the progress of the need to be properly national drilling if there’s a managed and Spending on d n a mitigated prior to the problem. We do have re tu c infrastru sensors installed project inception,” he n o ti c ru urban const says. “One of the major on the machine E A eU projects in th risks and important to provide updates ing over the com factors to consider is the for the alignment, so 15 years specific ground conditions there’s always someone or the geological uncertainties monitoring, supervising and of the site.” watching that data.” Focusing on projects in this region, Ibrahim The IQPC details a number of challenging notes there are various types of TBM, with geological features and environments in the usage depending on ground conditions. UAE which further necessitate the use of For example, depending on the strength of advanced TBM technologies and techniques. the material to be excavated, unshielded or The report highlights that under much of the UAE are conglomerates of slumped shielded TBMs could be used. “Unshielded TBMs are to be used when and redeposited shelf limestones or karstic excavating in rock with good to very good limestone formations. Furthermore, water has condition that can support itself without passed through the ground layers, wearing imposing any danger to the working away rock and creating cavities. The presence personnel until the primary support system of these particular ground formations is installed. For ground conditions, like soil frequently requires advanced soft-ground or weak rocks, that the medium cannot self- TBMs, also known as slurry machines, with sustain the excavated opening, then shielded variable density boring drills. TBMs are used, in addition to tunnel support.” Detlef Jordan, sales manager for Europe, Challenges continue to present themselves Turkey and Middle East at The Robbins once the TBM is underground. “We do our Company, goes on to discuss the drastic investigation beforehand, testing and drilling changes in TBM technology that allow TBMs bore holes to minimise surprises, but even to be used more widely across a much greater with the best will in the world, sometimes you range of ground conditions. get these surprises where you find something “As little as 10 years ago, people would say, you were not expecting. These can include ‘No way, you can’t use a TBM on these ground particles within the soil and boulders in the conditions, it’s too fractured and too weak, the
27
“Reality doesn’t always reflect the best produced report – we can never be 100% certain in what we predict to encounter in TBM drilling” risk of collapse is too high.’ However, in recent history, more and more we’ve learned that customers require machines that are flexible to cope with various ground conditions.” Jordan describes the tunnelling process as a conversation with the ground, assessing permanent feedback and reacting to the performance of the machine. This process has improved a lot in recent years, he claims, with the advancement of ground condition prediction techniques. “We can take readings about the ground conditions. We use methods including measuring systems and instruments and techniques to read the rock conditions, feeding information to computers. This allows us to read and analyse what’s coming next. The situation has improved greatly, so now
people use TBMs on certain projects that once we wouldn’t dare to.” Jordan highlights a specific example in Turkey, a railway line near Antalya consisting of twin tunnels, a total of 20km of tunnelling underground in total. Due to the nature of the rock formation in the location, the TBM is required to cope with different loads – therefore a universal TBM is needed, capable of drilling soft and hard rock formations. This requires a hybrid machine known as a cross-over, Jordan explains, because they cross soft and hard machine types and are capable of operating in a range of geological conditions, including hard rock, soft ground, abrasive basalt, watery clays and boulders. As far as the trend towards cross-over TBMs goes, Jordan suggests that the majority
The Robbins company has been manufacturing TBMs for 63 years, including the world’s largest hard rock TBM (14.4m in diameter).
of recent projects call for such machines, including Middle East projects such as the Doha Metro. Considering the new demands being placed on TBMs, how has the manufacturing process developed to keep pace with project requirements? Ibrahim discusses the early phases of new tunnelling projects, suggesting that tunnel projects to be excavated by TBMs are most frequently awarded in the form of design and build contracts. Following the completion of the geotechnical investigation and the geotechnical interpretation report, some first conclusions are drawn by the design consultant and the first recommendations to the contractor regarding the machine to be used are made. Information used to determine TBM requirements includes geology, the tunnel alignment, site restrictions, presence of critical structures and experienced and local knowledge of the buyer. The contractor contacts a TBM manufacturer, provides the project’s requirements and specifications,
28
Tunnel Boring Machines OC TOBER 201 5
easing coMMuTer pressure
underground infrastructure projects in dubai surrounding communities.
The Dubai Godolphin Road
date in November 2014 and an
Improvement Project, valued
estimated project completion
at $272 million, involves
date in mid-2017, the aim is
prefers the use of tunnel boring
the construction of roads,
to support the existing roads
machines, according to data
bridges and tunnels linking
in the Business Bay district,
gathered by the IQPC. The
to parallel roads, to ease the
improving traffic services
reason behind this preference
pressure on commuters and
and providing entry and exit
is to create tunnelling and
provide entry and exit points
options for the area stretching
underpasses that minimise
for Sheikh Zayed Road.
along the Sheikh Zayed Road,
the disruption to the city’s
while linking up with the
inhabitants and traffic flow.
With a project initiation
and the available geotechnical data and design and construction of the TBM is done by the TBM manufacturer. “The TBM delivery time depends a lot on the knowledge of the sub-surface conditions that will be expected. The earlier the interactions between ground conditions, site constraints and tunnelling method in the entire system are known and considered, the sooner the delivery of the TBM, which can be within six to twelve months. It is also worth noting that the shipment of the TBM to site and its assembly can also vary between two to four months.” Jordan proceeds to highlight the technological developments in the field of tunnel boring that will contribute to the success of upcoming projects. “Methods and means of ground prediction are a critical factor,” he says. “Looking ahead and planning in advance, to obtain more realistic and accurate information about the ground conditions that the TBMs are facing, is a key area for development. This is always important, because it is always advisable and always necessary to know what is coming ahead.” Jordan adds an example from a UK company seeking to pioneer new developments in this field. “They wanted to develop horizontal drilling, instead of vertical drilling ahead of the machine. This represents some intelligent drilling systems which could really benefit the TBM project – actually drilling parallel to the machine drilling, gathering ground prediction data. This type of thinking can assist with planning ahead, utilising technology such as radars to acquire sophisticated readings of rock.” He notes that there is space for development here; contractors always need to know what is ahead. “Reality doesn’t always reflect the best produced report – we can never be 100% certain in what we predict
Where possible, the UAE
to encounter in TBM drilling.” Considering the scope of projects either underway or pending in the Middle East region, the demand for TBMs will continue, and technological advancements will assist in evergreater accuracy and efficiency le on site, says Jordan Current Midd g on Ibrahim concludes by East spendin ajor acknowledging the huge tunnels for m opportunity for business and infrastructure machines as far as tunnels go in schemes the region. “I have to say, across the board we are seeing demand rising. If I had to say which countries specifically, I would point to Qatar and KSA for their
exceptional growth.” Jordan highlights extensive current infrastructure operations in Turkey, which he calls a “steadily developing market”. “For us it is one of the most important things, infrastructure. Many of these projects occur underground – it is not wished anymore to have such things above ground. Landscapes often prevent surface infrastructure too, forcing project operations underground. Infrastructure is receiving significant government and private sector attention throughout the region; we’re seeing big projects in railroad, water, waste and hydro power too.” Due to the vast scale and ambitious designs involved in many Middle East construction and infrastructure projects, it is essential to secure the most reliable foundation structures in order to ensure durability and resilience in underground operations, states the IQPC report. A number of challenging geological features and environments will further necessitate the use of advanced construction technologies and techniques, especially in the field of assessing and investigating ground conditions, an already sophisticated area of TBM operations which manufacturers are ready to further develop.
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32
SITE VISIT OC TOBER 201 5
Leading the way Mark OberhOlzer, PMV Manager, and barry Van dyk, Cranes and equiPMent Manager at aleC, talk teChnOlOgy, training and COnstruCtiOn equiPMent in an exClusiVe interView with CMME
P
rogress is impossible without change. This sentiment is at the core of ALEC’s values, as Mark Oberholzer, PMV manager, and Barry van Dyk, cranes and equipment manager, discuss the continued reputation of ALEC and the strategy driving the company forward in an increasingly competitive construction sector. A subsidiary of the Al Jaber Group, ALEC has evolved and grown since its inception in the UAE in 1999, focusing on the execution of major construction projects across the GCC. With operations in the UAE, Oman and Qatar and a total workforce of 9,700 employees, Oberholzer and van Dyk have embraced the importance of change, combined with an appreciation for experience and a focus on future trends. “From my side, it’s all about specifics,” van Dyk begins, highlighting his role in managing the demands of various construction projects being carried out by ALEC. “First of all, you need to understand the particulars of the demands, and then focus
on time. When does the client need the equipment and machinery on-site, and for how long do they need it?” “You need to be an expert in planning too. You need the specifications, and then also, because we have so many projects, you need to understand the priority and importance of each one compared to the others. Once you understand all of this, then you can prioritise and start putting measures in place to balance things out and to meet the demand.” Building upon his opening comments about operational logistics, van Dyk leads the
33
conversation towards the specific machinery technologies and processes which ALEC has introduced in recent months, pointing to the importance of continuously improving productivity, looking after equipment and embracing new ideas. “Our fleet is state-of-the-art, it’s got technology that we feel works best for us. On top of that, updating crane technology these days is just like updating software on laptops and mobile phones. Whenever the manufacturers come out with upgrades, we adopt them; even with the mechanical and electrical side of things, we get them from
the manufacturers and promptly install them on our cranes.” Never becoming complacent in their operations is a foundation of their success. Oberholzer seizes this opportunity to discuss the growing future role that new technology will play in construction fleet management at ALEC. “We are busy developing telematic technology now. Plans to install a dedicated telematic control room in our Jebel Ali headquarters are already underway. We will be fully capable of monitoring each and every machine individually, live on-site,
ALEC is one of the largest contractors for the execution of major projects in the GCC, with a project portfolio consisting of high-end complex construction projects, predominatly in airports, retail, themed hospitality and commercial sectors.
thanks to large-scale monitors mounted on every wall of our control room. We’ll see detailed data from the different machines and manufacturers displayed live across numerous dedicated screens.” The implications for such advances become clear, as Oberholzer continues to vividly discuss the benefits to machine uptime, repairs costs and project efficiency, all thanks to the active adoption of the latest technology. “We are going to develop a full tracking system so we can monitor all the machines, vehicles and cars – everything. Our vision
34
SITE VISIT OC TOBER 201 5
nEw kIT
uPgrading MaChinery ALEC recently purchased the new JCB 540/200 20m Load-All for use in the Middle East. The longer reach offered on this model will help the elected sites become more productive. As well as productivity gains, ALEC highlights that safety was integral to the decision to purchase their 25th JCB Load-all. The telehandler comes equipped with overload sensors, meaning the machine can’t be overloaded, significantly reducing
“It’s a combination of training, experience and knowledge – you have to study”
the risk of a major accident. Safety features such as the overload sensors on the telehandler advise operators when they’re working with too much material, greatly reducing the risk of the machine tipping. The new machine also has a more resourceful working system
is to have a dedicated team of analysts operating the control room permanently – 24 hours a day – monitoring all the systems, on all of the machines, so we can analyse and proactively respond to every telematic sensor installed throughout our entire fleet.” Oberholzer points out that new OEM machinery from 2014 has started coming with telematic technology as standard. For this reason, ALEC is responding to the new market developments and will be fully capable of meeting client expectations ahead of time. “Additionally, we are developing a mobile application, so even operatives on the ground can monitor the fleet and respond to data, regardless of their location.” Past success is no guarantee of a secure future, as Oberholzer and van Dyk discuss. The exponential growth of new technologies is certainly having an impact on the construction machinery sector, and there is an ever-present need to be innovative, actively identify new trends and stay ahead of the competition. To overcome the challenges presented by competitors, ALEC is focusing on embracing change and increasing the added value clients can expect from their operations. This motivation to provide added value encompasses professional development opportunities for all members of their team too. With a compulsive drive to maintain safety standards throughout their operations, van Dyk takes this opportunity to slow the pace of the conversation and emphasise ALEC’s approach to best practice. “Safety training is very important, but it
shouldn’t be confused or substituted with technical knowledge and skill. At the end of the day, from a plant perspective, the safest people you can have are the best skilled people and the most knowledgeable.” When asked about the importance of experience in the field, van Dyk offers a surprising perspective on the topic, specifying that it is not only safety training that makes people safe. “It’s a combination of training, experience and knowledge – you have to study. We have thick manuals to read, two
which makes loading and offloading
250
Timeframe, in hours, for construction machinery maintenance
more efficient, and is the only rigid chassis 20m telehandler in the industry, purchased due to the additional range it offers. The extra 3m over its predecessor enables operators to reach to an additional floor, while the chain-driven boom with simultaneous extension and retraction translates to huge productivity and efficiency benefits for one of the Middle East’s largest contractors. The 20m Load-All will be used across multiple building projects in Abu Dhabi and Dubai.
STRONG ON BUSINESS
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RANGE K GVW: UP TO 40 Tons (6x4) and UP TO 48 Tons (8x4) Available in different axle conямБgurations.
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SITE VISIT SEP TEMBER 201 5
manuals for each crane, so you cannot escape the importance of continual learning.” While governments in the region do have a role in providing regulations, it is generally up to consultants and contractors to create awareness, uphold safety standards on-site and ensure rules are being followed. “Experience is crucial,” van Dyk continues. “Our people have been with us for a very long time, some of our team have actually been with us for eight to ten years plus.” With multicultural staff employed by ALEC, language training is also provided in order to ensure instructions are understood by all. This level of training is ultimately concerned with productivity or minimising errors, as van Dyk continues. “We’ve also introduced processes for our operators, so we do annual refresher training and we bring them in for one week and go through the whole training refresher course with them, in addition to conducting a medical check-up.” “We prefer to do most of our construction machinery training in-house, because we believe we can do it better than if we were to outsource it. From the start, we are involved in the planning stages right through to execution, because we have to make sure that the manufacturer’s specifications and recommendations are followed all the way through. We provide a 360-degree service to our projects, so we’re always there for the client.” When it comes to revealing the secret of best practices at ALEC, van Dyk highlights with enthusiasm the processes he has put in place. Taking apart every piece of machinery, conducting inspections and quality checks before repairing and reassembling everything,
Mark Oberholzer, PMV manager (left), and Barry van Dyk, cranes and equipment manager (right) at ALEC, discuss new technology, employee training and construction equipment.
is an element van Dyk discusses with gusto. “We refurbish the whole machine, everything, then we test it, and then we send it out to the project, so it’s already passed our strict tests, it works and it meets our very high standards.” Their approach to servicing equipment holds this same level of consideration for standards and best practices. Oberholzer describes some of the most important factors in keeping construction machines operational. “We run quite a strict hourlybased maintenance system – all our machines get serviced every 250 hours, every single one, and it’s compulsory, we don’t take any short cuts. We also only use OEM parts, we’re not allowed to use other parts, so everything is original.” Pressed for further insights into servicing, replacing and upgrading construction machinery, Oberholzer reveals that ALEC operates largely
independently of machine suppliers. “We do all the work in-house, everything – maintenance, services, the works. The only time we’ll go to them [suppliers] is when it’s a specialised repair that has to be done – I’d rather take it to the supplier because it’s more productive, they’ve got all the equipment to fix it efficiently and I’ll still get the warranty.” Testament to the skills and attention to detail provided in-house at ALEC, Oberholzer notes that with regards to turnover cycles, “I’m running machines with 45,000 to 48,000 hours, and they still have the original engines and transmissions. But we are changing the system now, we will more than likely begin changing the machines and start selling them off and replacing them with new ones after six-seven years, depending upon the hours.” A walk through the Jebel Ali plant reveals the manifestation of Oberholzer and van Dyk’s values in action. Dedicated and spacious Timeframe, in g work stations equipped in c la p re r fo , years for specific operations machinery ) are manned by a busy rs u o (pending h workforce, labouring on a wide range of construction machinery and equipment. Purpose-built classrooms are stocked with tables, chairs, whiteboards and teaching materials, all in preparation for the latest HR and training developments. A rotation of construction equipment returning to the plant for assessment and newly-inspected machinery ready for the work-site can be seen in action. A tight ship is being operated by ALEC, and with the active adoption of changing technology, customer demands and market trends, progress looks set to continue in the future.
6-7
Al-Qahtani Vehicle & Machinery Co. Tariq Al-Qahtani & Brothers
38
MARKET REVIEW OC TOBER 201 5
Spending on Egypt’s construction sector could top $7.3bn by the end of 2015, according to analysis released by Collaboration, Management and Control solutions (CMCS).
39
ON THE RISE
CMME discusses the North AfricAN coNstructioN mArket with leAdiNg mAchiNery ANd equipmeNt mANufActurers, ANd discovers optimism is slowly returNiNg to this iNcreAsiNgly AttrActive iNvestmeNt destiNAtioN
T
he effect of geopolitical events on the construction machinery market in North Africa should not be underestimated, says David Semple, VP sales for the Middle East and English-speaking Africa at Manitowoc. “Recent regional events have significantly impacted our sales, and we are coming out of three to four years of low sales volumes in this region.” The infrastructure story in North Africa remains a world apart from the dynamics of other African regions, according to Deloitte’s African Construction Trends Report 2014. Attributable to the recent and in some cases ongoing political challenges in the region, investor confidence varies, the report claims. However, North Africa is rebounding, EY claims, noting that political uncertainty is fading and North Africa is becoming increasingly attractive as an investment destination. On the whole, the African economy is expected to grow by 5.7% in 2015, yet North Africa currently accounts for only 3% of total infrastructure projects on the continent by number of projects, per Deloitte research. “The period between 2011 and 2014 has been highly unstable and not conducive to any private or public investments,” Semple says, noting that Manitowoc did fulfil a small number of orders for cranes to Egyptian state companies – mainly in the oil and gas sector – during that period, but not in the volume that a market like Egypt is capable of absorbing.
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MARKET REVIEW OC TOBER 201 5
“The demand in this region remains comparably higher, supported by rich local resources and energy, and less modernised civil structures”
Africa’s infrastructural transformation is being driven by increased output in the natural resources sector, which in turn has underpinned rising fiscal expenditure on infrastructure projects.
InVEsTIng In InfRAsTRucTuRE
AfricAN megA projects Investment in African
transport (34%), mining
mega projects jumped
(9%), property (6%), water
46% to $326 billion in
(5%), oil and gas (4%),
2014. This was led by
mixed-use facilities (2%)
heavy investment in
and health care (1%).
transport, energy and
Africa’s infrastructure
power, according to the
development is being
third annual Deloitte
propelled by increased
African Construction
output in the natural
Trends Report. The
resources sector, which
report identifies Africa’s
in turn underpins rising
rapidly growing middle
fiscal expenditure on
class as driving demand
infrastructure projects,
for sustainable social
the report claims. This
infrastructure, claiming
has facilitated rising
that Africa is en route to a
international trade with
brighter future and overall
the continent. Rapidly
will see opportunities
growing urbanisation and
surpass challenges. Of
rising domestic demand in
the construction projects
Africa has simultaneously
mentioned, 143 were led
ushered in a new wave of
by the public sector,
foreign direct investment in
88 were private sector
the continent’s biggest and
initiatives and 26 were
most dynamic economies.
public private partnerships
The report concludes
(PPPs). Energy and power
by confirming
accounted for 37% of the
continued, intensive
mega projects undertaken
construction activity
during 2014, followed by
across the continent.
Despite the low percentage of total construction market, Semple says: infrastructure projects in North Africa, the “Construction activity and infrastructure project value totals $9 billion, showing an development is growing, and there is a strong increase from $7 billion in 2013, indicating political desire to support the economy by that demand is returning to the region. the current president, Abdel Fattah el-Sisi.” Speaking on the level of demand Speaking specifically on the in the North Africa region, construction of the new Suez specifically for construction Canal project, he says: machinery, Dawei He, “El-Sisi has set the stage director of sales division with the expansion of l ta Increase in to – Middle East, Africa, the Suez Canal project, North African which was carried out Asia Pacific, Dressta, infrastructure by dozens of companies comments: “ The working in parallel, demand in this region project value allowing this project to remains comparably between 2013 progress at a record pace. higher, supported by 14 0 and 2 “The extravagant grand rich local resources and opening of this new waterway energy, and less modernised held last month demonstrates how Elcivil structures.” Dawei also says Dressta is suffering a drop at the moment due to Sisi intends to rescue the economy by sharply decreasing oil and gas prices, but putting Egypt back on the geopolitical and the company is seeing some positive trends, economic Middle Eastern map. While the including reforming and opening policies, other projects under discussion [Cairo, metro, appropriate policies for foreign investment desalination plant] might seem less iconic and international cooperation, and growing or symbolic, they will for sure be generating demand for facility improvement. He adds significant new construction machinery and that the leading markets at present for equipment enquiries.” Dressta’s construction equipment are Algeria, On geopolitical tension and the potential Libya and Ethiopia. for a healthy construction sector in the Discussing growth in the Egyptian future, Dawei says: “Only a stable social
$2BN
42
globAl ATTEnTIon MARKET REVIEW OC TOBER 201 5
foreigN iNvestmeNt iN AfricA The economic boom in the
campaign is backed by
Middle East has resulted in
$7 billion of funding.
Arab investors spreading
and reforming environment can guarantee having caused additional setbacks. the market growth and sales consistency, Deloitte agreed that there was a marked unrest will continue to block the projects and withdrawal by Foreign Institutions and African sales leads.” DFIs in project funding, possibly due to the EY’s research into the African economy volatile security and political situation in parts discovered that an unstable political of the region. environment is most commonly Enrico Angiolini, sales director cited as the top perceived barrier for South Europe at Manitowoc, to investment in Africa. In discusses the impact this has light of the easing political had on sales. Commenting tension in the region, specifically on the Libyan t n e Investm crane market, Angiolini the geopolitical trends a g e increase in m influencing sales are a key says, “The civil war has er projects und topic in the market. This had a detrimental impact in viewpoint is developed on sales, which came to a construction virtual standstill during the in research conducted by Africa in 2014 war, and we do not foresee KPMG in the construction sector in Africa, which identifies activity levels resuming until that infrastructure and construction investors the country reaches a certain level of require a stable political environment, given political stability.” Concentrating on the future of the the long-term nature of such investments. Yong Yue, sales director, Liugong Middle construction industry, Angiolini says, “We East, adds: “The level of demand in this have not seen any sign of a construction market for construction machinery is quite industry pick-up. Foreign contractors from strong in this area, however the demand has Europe, Turkey, the Middle East and China dropped due to the unstable political issues have been managing most of the major in last couple of years.” He also adds that projects in Libya in recent years, and they in his opinion, future health and prosperity have mostly now left the country. There is in the sector will require “years to make a little hope of them returning anytime soon.” full recovery”. However, addressing the positive growth While geopolitical tensions and weak and demand in the Algerian market, Orlando economic growth led to a 3.1% decline in Mota, sales director – Mediterranean Iberica, FDI projects worldwide in 2014, and 8.4% Israel, Angola & French-speaking Africa in Africa, African investments still remained at Manitowoc, says, “Algeria is one of the well above pre-2008 levels. In terms of future most active markets in Africa today, with major announcements of North African several new projects planned as the Algerian construction projects, Dawei says some government undertakes massive investment projects remain “pending or delayed due to plans for oil and gas infrastructures.” Due to current oil prices, spending lack further financing”, citing uncertainty as
46.2%
However, European
their investments to north
investors continue to launch
and sub-Saharan Africa
the most direct investment
in search of the returns
projects in Africa. European
becoming increasing
nations, led by the UK,
difficult to find in saturated
remain keen investors overall,
Western markets, according
though British companies
to Business Guide Africa.
eased back last year, Deloitte
Consequently, there have
research claims. The EU
been many joint ventures,
is currently looking to
mergers, acquisitions and
promote growth in Africa
reverse takeovers in African
by negotiating economic
nations, backed by capital
partnership agreements
surpluses in the Gulf.
(EPAs) with regional blocs in
According to the White
the continent. Three of these
House website, the US
EPAs, intended to create
government has launched
duty-free and quota-free
programmes to facilitate
access for African goods to
trade and investment
the EU market, have been
in Africa, most notably
signed, with the Economic
President Barack Obama’s
Community of West African
2013 Trade Africa initiative,
States (ECOWAS), the
aimed at expanding
East African Community
US-Africa trade and
(EAC) and the Southern
investment. The American
African Development
Doing Business in Africa
Community (SADC).
“Construction activity and infrastructure development is growing, and there is a strong political desire to support the economy”
has slowed down, he says. “Considering that oil and gas accounts for nearly all of Algeria’s export value, spending is slower at the moment. On the other hand, China is continuing to expand its influence in the region, especially in Algeria. A number of projects have been given to Chinese contractors and these are helping Algeria continue its momentum of growth.” “As we continue to see a slowdown in oil prices, and with China’s increasing market presence, we trust that Algeria will remain an active market but at levels that are a bit below previous levels. Morocco is slightly different, as the economy was deeply affected by the European recession in 2009, and has failed to recover properly.” On a more positive note, Mota explains that Mahomed V, King of Morocco, announced several new infrastructure projects at the end of last year. “Over the last few months, we have seen a gradual increase in residential construction, which has revitalised the market.” “As far as Tunisia is concerned, the construction market remains stagnant, with the economy relying heavily on the tourism industry, which dropped in recent years. The construction industry has suffered a slowdown. Tunisia and Morocco are the two countries that have been most affected by the recent geopolitical trends. However, we do predict that Algeria may also encounter problems in the future.”
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51
IP S TOP 10: T TO AVOID IME CYBERCR
46_NEW RELEASES
ow to need to kn What you ur business protect yo lients. and your c
The latest releases from the world of construction machinery.
56_MATERIALS HANDLING Discussing Materials Handling Middle East 2015 in Dubai.
64_THE ULTIMATE BREAKTHROUGH Tunnelling completed under the Istanbul Bosphorus.
46
NEW RELEASES OC TOBER 201 5
Wheel loader for heavy-duty operations Why get it? Handles Heavy-duty tasks witH ease, optimum profitability and fuel economy The L250H wheel loader from Volvo Construction Equipment is built with performance in mind. Equipped with Volvo’s OptiShift technology, the new machines eliminate power losses
in the torque converter and reduce fuel consumption by up to 18%. Volvo’s load-sensing hydraulics and a Tier 2/ Stage II Volvo engine (for less regulated markets) supply power to the hydraulic functions according to demand, to boost efficiency and lower fuel consumption. The Volvo L250H features Volvo’s proven Z-bar linkage, providing high breakout force for strong digging in hard materials and facilitating quick load cycles for increased productivity. A ROPS/FOPS-certified cab provides a comfortable operating environment with ergonomically placed controls and a comfortable seat with three-point seat belt and seat belt warning. The L250H features an
industry-leading air filter system that allows 90% of cab air to be recirculated through the filter for effective continuous dust removal. Volvo also offers a variety of options to improve safety and visibility when working in the dark, including reflectors which follow the contours of the machine, LED entrance lights and additional work lamps to increase visibility. SPECIFICATIONS
l250H Engine: D13F Tier 2/ Stage II Volvo engine Reduced fuel consumption: Up to 18% Drive cab: ROPS/FOPS-certified
47
neW Grove crane to hit the market Why get it? optimised counterweigHt package for maximum flexibility Manitowoc exhibited at this year’s Matexpo 2015, displaying a selection of Grove cranes including the company’s new five-axle Grove platform. Manitowoc recently introduced the new five-axle Grove all-terrain GMK52001 crane, which joins the popular 250t GMK5250L. The new GMK5200-1 crane shares several of the features and advantages of the GMK5250L, as well as an optimised counterweight package for maximum flexibility. The new Grove crane offers optimal boom and jib combinations, featuring a 64m main boom which can be extended with two 8m inserts and an 18m swing-away jib with 40° offset. Additionally, the 200t GMK5200-1 has a maximum counterweigh of 70t. Together with the GMK5250L, the new Grove five-axle crane is the first in the industry to offer VIAB turbo retarder clutch, which eliminates both fluid overheating and clutch burning. SPECIFICATIONS
gmk5200-1 Main boom length: 64m, which can be extended with two 8m inserts Swing jib: 18m swing-away jib Maximum counterweight: 70t Engine: Tier IV Final/EUROMOT 4 MercedesBenz OM471LA
neW Generation sdlG e6360f hydraulic excavator Why get it? excellent fuel efficiency Shandong Lingong Machinery Co, Ltd. (known as SDLG) has launched a brandnew generation of machines with improved design and functionality, including the new SDLG E6360F hydraulic excavator. The SDLG LG6360F hydraulic crawler excavator features a high-torque 13l engine that delivers power in an energyefficient manner. Configured with an innovative double-pump hydraulic control system, the excavator works
efficiently, delivering power where it is needed most while also offering multiple work modes. The ergonomic cab design features air conditioning and all-round glass for maximum visibility. The GPS system makes the machine easy to track and operate, while the widened X-shaped chassis gives the machine enhanced stability on rough ground. Configured with Tier III engines and hydraulic control systems, the machines offer excellent fuel efficiency as well as multiple attachments to suit diverse job-site conditions. SPECIFICATIONS
sdlg lg6360f Engine: high-torque 13l engine Hydraulic control system: Double-pump Cab design: All-round glass for maximum visibility
48
NEW RELEASES OC TOBER 201 5
yanmar launches sv100 2-piece Boom Why get it? improved lifting capacity by up to 45 per cent High performance, a unique design and ease of operation are the key characteristics of the new Yanmar SV100 2-Piece Boom (SV100 2PB) excavator. The articulated boom configuration enhances the performance of the Yanmar SV100 – particularly in lifting, moving and placing loads. The SV100 2-Piece Boom is the first Yanmar excavator with an articulated boom. The added articulation of the boom improves the manoeuvrability of the machine and its ability to place loads with precision. The additional weight resulting from the articulated boom configuration has been limited to 845 kilos including the additional counterweight. It contributes to improving the machine’s lifting capacity by up to 45 per cent in some areas of the load chart.
The orientation of the boom articulation cylinder also enables the operator to raise the boom faster and to lower it more slowly - optimal for positioning of loads. The SV100 2PB is fitted with a single top mounted boom articulation cylinder. This configuration guarantees a total protection of the cylinder rod thus reducing the risk of damages. Furthermore, the use of a single top mounted articulation cylinder enables to reduce the machine’s dead weight by 50 per cent, thus improving the stability of the machine. The very sleek structure of the boom provides the operator with good visibility, with the best of its class in the market. In order to improve the operator’s comfort and the maneuverability of the articulated boom, Yanmar decided to put the control for the articulation on the left joystick with a proportional switch. SPECIFICATIONS
sv100 Operating weight: 10,360 kg Dumping height: 6,210 mm Rear swing radius: 1,470 mm Engine: Yanmar Diesel 4TNV98CT-VBV Break-out force: 68.5 kN
updated hydraulic poWer pack Why get it? increased user-friendliness saves botH money and time The design of the new Atlas Copco LP9-20 is focused on productivity. The machine is small, but powerful enough to give the user great flexibility. The design of the hood makes it easy for the operator to open and do maintenance without disconnecting the hoses. Oil needs to be clean for hydraulics to be efficient, so a highly visible filter indicator on the control panel shows when a filter change is due, allowing the user to switch filters at just the right time. This makes the 2015 LP9-20 more economic. To make sure there is enough oil in the system, the front panel has a clearly visible sight glass that shows the current level. Additionally, the easy-to-reach oil bypass switch pauses the hydraulics without the operator needing to turn off the engine, allowing quick tool changes. The Atlas Copco LP9-20 also comes with a choice of power sources and has a light aluminium 5.5kW, 3x400 V, 16 amp industrial motor. SPECIFICATIONS
lp9-20 Operating temperatures: -20°C to +40°C Power source: Aluminium 5.5kW, 3x400V, 16 amp industrial motor Fuel type: Petrol
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01
02
Encrypt USB flaSh drivES USB flash drives present very basic security threats. Their small size makes them vulnerable to being stolen, and in the wrong hands data recovery software will yield even previously deleted info.
fUll diSk Encryption An essential first step towards protecting your company is to ensure that full disk encryption technology is enabled so that all data on storage drives is scrambled.
: n e T Top d i o v a o T s p i T e m i r c r e b y c cloUd StoragE protEction The safest measure to ensure the integrity and privacy of your data is to avoid public cloud storage services, or to ensure that you upload only encrypted data.
03
Us e a d pa s swgoerr manaa s the nager avert
m A password cre passwords, and d e io s usage of m k password using wea re e n ts li n n e o v pre s or le website ip lt u h m ig h ss f acro sue o his is an is services. T asily highe w en ho iv g , rn e c n co es can rity breach level secu poor ply due to occur sim passwords.
04
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top tEn OC TOBER 201 5
05
06
EnaBlE mUltifactor aUthEntication Multifactor authentication requires an additional layer of authenticating data before allowing you to log in to a system. A PIN code sent via text message or an app-generated code are common authentication layers.
kEEp yoUr opErating SyStEmS UpdatEd Updating a firewall that opposes viruses, spyware and phishing attacks will keep you protected against the more sophisticated attacks. Additionally, keep your browsers updated at all times with the latest software version to stay safe on the web.
train yoUr EmployEES Emails may be disguised as a trusted client’s email or a recognisable brand, but these fake accounts often feature clues to their inauthenticity. Be on the look-out for multiple spelling mistakes, suspicious links and unwanted download requests.
be s oci a l v y media-rksinagvprofiles
o S ocial netw n to set your o ti p o e Be have th ate; use it. v ri p to profile tion you at informa careful wh omposite e to, as a c n li n o st o p easily e data can of sensitiv few d within a be collecte sing these minutes u websites.
09
07
SEt Up adminiStrativE rightS Ensuring that nothing can be installed on company computers without authorisation is an important step in securing your networks. Blocking access to restricted sites will help prevent employees and hackers from accessing damaging content.
08
protEct yoUr paSSword Create strong passwords with eight characters or more that use a combinations of letters, numbers and symbols. It’s best to change passwords often – every three months at a minimum.
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Materials Handling Middle east 2015 OC TOBER 201 5
ONESTOP SHOP DaviD Thompson Discusses emerging markeT TrenDs wiTh leaDing inDusTry figures aT maTerials hanDling miDDle easT 2015
C
heers erupted from the dedicated operator arena at Materials Handling Middle East 2015 as crowds of visitors watched the forklift operator of the year challenge taking place. The 70 participants put their skills to the test in a variety of tasks as the exhibition around them unfolded. Running for three days at Dubai International Convention and Exhibition Centre, MHME 2015 witnessed a 15% increase over its previous outing in 2013, featuring 129 exhibitors from 21 countries and showcasing over 250 brands. Ahmed Pauwels, CEO of Messe Frankfurt Middle East, the organiser of MHME, says: “The GCC is today among the most exciting markets for materials handling and logistics services, with the region increasingly gaining in importance as a major shipping
57
Developed in coordination with the leading driving institutions in the UAE, over 70 participants took part in the forklift operator of the year challenge, testing their skills in speed, accuracy, control and safety.
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Materials Handling Middle east 2015 OC TOBER 201 5
“The continued growth in the sector can not only be attributed to the continued infrastructural development across the region but also to increasing demand for a streamlined supply chain and logistical framework from a growing number of regional businesses” and aviation hub.” Research conducted by analysts at Frost & Sullivan found that the GCC Material Handling Equipment (MHE) market is valued at $3.8 billion in 2015 and is expected to reach $5 billion by 2020. The same study found that Saudi Arabia accounted for 46% of materials handling equipment revenue in 2014, followed by the UAE with a 35% share, while the other four member countries accounted for the remaining 19% of revenue. The strong international presence at the 2015 event is complemented by more than 30 UAE-based exhibitors. This research indicates the strength and significance of the host nation, and highlights the potential
for further growth in the wake of MHME. and freight and cargo, there soon emerged As CMME discovered, a combination a clear consensus that customers are of i n c re a s i n g logistic demanding a holistic approach complexity, evolving market to the supply and afterdynamics and high-tech care of material handling advances are reshaping equipment and machinery. market demands “People are looking to C C have a one-stop shop, in the GCC region, G d te Expec g complete solutions compelling suppliers n li d n material ha provided in one place, and manufacturers ) E H equipment (M whatever their specific to engage in a by market value requirements,” says Sunil te c h n ol o g i c a l and 2 02 0 operational paradigm shift. Shetty, sales manager, Speaking w i th th e Heavy Equipment and Parts exhibiting experts in intralogistics, division at United Motors and warehousing, supply chain management Heavy Equipment. These sentiments are largely echoed by small exhibitors, large international exhibitors and UAE-based exhibitors too. “Warehousing solutions are the focus of our presence here today, nothing else. FAMCO is delivering a one-stop shop for total warehouse solutions. Our customers are demanding one-stop shop services, including after-sales and servicing. That is what we are seeing today, total warehouse solutions,” says Yaser Eltantawy, sales engineer, Storage and Handling Solutions division at FAMCO. Nadeem Karim, director of Business Development at KK Power Group, agrees with these sentiments. “We are a one-stop solution for all warehouse equipment; we provide equipment and consultancy as per the customers’ operations. Our clients want to find their solutions in one place, this is the new reality.” Adding to this new understanding of customer needs, Dr Oliver Kempkes, managing director of German lifting
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equipment manufacturer KULI, points out growing customisation in total warehouse solutions. Stocked solutions and plain solutions are no longer demanded, he says. “More and more customers are demanding products adapted to meet their special needs, to special geometry, speeds, lifting applications, duties and load lifting attachments. So basically the standard products will not work nowadays. In the coming scenario, customers want their products custom-made as per their own project-specific requirements, so we have to design according to that requirement and give them the complete projects based on
CoMpetition tiMe
forklifT operaTor of The year challenge Materials Handling Middle East launched a new challenge aimed at forklift operators, with the winner named Forklift Operator of the Year. Developed in coordination with the leading driving institutions in the UAE, the challenge took place in a dedicated arena during the event. With over 70 participants, the challenge tested the skills of forklift operators in the areas of speed, accuracy, control and safety and was designed to promote the safe and efficient operation of forklifts.
their demands.” As a result of the challenges presented by these market demands, Kempkes points out the need for holistic in-house manufacturing of components, requiring new knowledge, design, flexibility and production to implement these changes for the client. Nayla Samaha, marketing and communications officer at Span Group, says that emerging trends mean Span Group has witnessed a growth in fragmentation of order fulfilment, further noting that regional operations seek more throughput, requiring a greater number of smaller shipments. KULI’s local partner in the Middle East, Inter Equipment, is optimistic about the new scenario. Uday Thaker, area sales manager, suggests that while demand and growth in this sector depends on the oil price, they anticipate further progress based on recent project announcements in the region. “Given the present situation, it is very difficult to analyse, but we are waiting and watching for another quarter, ever
The show provides an opportunity to create and establish business relationships, to see the latest trends and developments in the supply chain industry, and to test the latest products and technologies.
optimistic for future success,” he concludes. One of the most commonly mentioned aspects of the one-stop shop scenario of warehousing is space. The warehouse space available for a growing number of machinery and equipment requirements is declining due to property prices, as Bonney J P, assistant manager of Sales at Godrej Material Handling, explains. “Property prices are going higher, but business is good in this region, so clients have less space and greater output. So a new trend has emerged in warehouse equipment that can adapt to these new environments and perform the same tasks under new, more compact conditions.” To supply this demand, Bonney J P says manufacturers have developed a whole range of equipment suited to the client’s needs. “Nowadays, people are looking at narrow equipment. This is certainly trending these days. The reason for this is of course the trend for limited warehouse dimensions, which requires equipment with higher carrying capacity for lifting within a confined space. We have catered to these new needs. The main companies, mostly the bigger companies, they are looking for machines like this in order to maintain their competitive edge.” Eltantawy agrees, suggesting that land prices in this region are pushing people to use less space and to thus extend vertically with higher warehousing operations, adding to potential future demand for such vehicles and equipment. Very Narrow Aisle (VNA) staking equipment has emerged as a leading piece of equipment in this new market. As a solution for high-density warehouses, VNA forklift trucks can work in much narrower aisles than traditional forklift machines, meaning more space for racking in a warehouse. This type of demand is client-driven, says Bonney J P, mainly due to fluctuating property price and space limitations in Dubai and throughout the Middle East. Bonney J P acknowledges Godrej is not alone in the market for VNA equipment, pointing out that many manufacturers cater to this demand in the Middle East and that this will be a key area to watch. These challenges in the GCC logistics market also offer new scope for automation in the region’s materials handling industry. However, current levels of mechanisation in the sector are relatively low, new research by Frost & Sullivan has revealed. A survey by analysts at Frost & Sullivan compiled data from more than 200 logistics end-
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“People are looking to have a one-stop shop, complete solutions provided in one place, whatever their specific requirements” users from numerous industries across the trend to watch. He highlights the tangible GCC, concluding that there is strong benefits of AMH, including faster transit of materials through the supply intent to adopt automation chain, increased processing and improve operational efficiency and processes. accuracy, less manpower According to the and greater quality survey, forklifts are the control. Eltantawy e id most popular form of concludes that, due -w C GC mechanisation in the to price concerns, re tu c infrastru GCC logistics industry, customers may go e th y investment b with 37% of respondents for Chinese products dling materials han saying they use them, or cheaper goods with sector in 2015 lower quality. followed by coding and It’s all about budgets, he labelling devices (34%) claims: “Smaller businesses in and warehouse trucks (26%). However, over half of respondents said the region are putting small operations they don’t use automated technology in in action. As a result, they are focused on their logistics operations, because it is minimising expenditures.” too expensive. The automation trend will also depend In light of the new research, supplying on country-specific regulations on things this demand in the future is a growing like operating height. In this case, clients will topic of conversation in material handling require automation for higher operations if circles; as Eltantawy of FAMCO suggests, regulations come into effect, thus restricting automated materials handling (AMH) in manual operations above unsafe levels and large warehouses is going to be a big increasing the expansion of AMH equipment.
$86BN
Materials Handling Middle East pays attention to six sectors where warehousing plays a critical role: Logistics & Supply chain, Retail, FMCG, Automotive, Oil & Gas and Pharmaceuticals.
Shetty suggests that automation will be key to future warehouse management. “There is an emerging trend here. Throughout the industry, customers want to monitor and control operations from their office, handling equipment remotely. Not everyone needs this technology, but with big fleet owners they are demanding it more frequently. It could be a gamechanger. In fact, this could be the next big game-changer in the region. The future is going to be very interesting, especially watching the big companies.” Taking a lead in AMH technology at Material Handling Middle East 2015 is the HiTech Robotic Systemz Company, specialists in robotics, artificial intelligence and control technologies. “Automated guided vehicles are transforming warehouse operations,” says Lavanya Manchanda, manager of sales and marketing, adding that with a combination of laser-guided options and magnetic guidance options, industry can benefit from a range of automated machines. Automated guided vehicles also offer the potential to increase productivity and reduce running costs, largely because they operate independently of one another and can handle a variety of tasks. The challenge in bringing this tech to a new market such as the Middle East is awareness. The technology has passed research and development and testing phases, and is on the market, but more awareness is needed in order to realise its full potential, claims Manchanda, concurring with the Frost & Sullivan findings. OEMs are taking an interest, in response to changing market demand and customers’ need for customisation, productivity and efficiency. Speaking on the overall success of the Materials Handling Middle East exhibition, Ahmed Pauwels, CEO of Messe Frankfurt Middle East, organiser of Materials Handling Middle East 2015, says, “The continued growth in the sector can be not only be attributed to the continued infrastructural development across the region, but also to increasing demand for a streamlined supply chain and logistical framework from a growing number of regional businesses.” As the premier trade event in the region for the industry came to a close, exhibitors and trade buyers appeared to be using the dedicated networking platform to maximum effect. With $86 billion in GCC-wide infrastructure investment in the materials handling sector, according to the event organisers, big opportunities are available for those keeping pace with market trends.
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