Construction Machinery ME

ISSUE 11 R 2012 SEPTEMBE

CEMENtED REP

PUBLICATION LICENSED BY IMPZ

Concrete facts on sector

A KUt ABOvE

volvo’s downhill racer

wAItING GAME Handling Qatar’s pause

sTETTER: IRAQ Is NExT

GROUND-BREAKING! Bauer Machinery digs in **

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Plus: & VIEWs POWER TEsT PREVENTATIVE MAINTENANCE Plus:ACROss ACROssTHE THEINDusTRY INDusTRY NEWs NEWs & VIEWs RAW OffROAD bE A bETTER buYER

ANDMORE MORE **AND

Contents

18 page 18 STETTER URGES TO GET KIT MOVING

“There’s a lot of equipment slumbering in somebody’s yard.

This can be mobilised to satisfy demand.”

IS S U E 1 1 R 2012 SEPTEMBE

06

Editorial Can somebody tell drivers to stop burning rubber?

08

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

14

NEwS aNalySiS The region’s rentals go global.

17

ExpErt opiNioN Insight from FAMCO

8

24

18

BuildiNg a fouNdatioN

24

updatE oN uSEd MaCHiNEry

CMME talks to Bauer’s Dieter Stetter on his global adventure and how it helps him shape the company’s Middle East operation.

Euro Auctions provides his update on the ever changing global used machinery market.

30

a Kut aBovE Downhill skier Tomas Kuta says the race is on in the Middle East market for Volvo CE.

35

30

48

Qatar: tHE patiENCE gaME Striking a careful of the real and possible projects that are planned in Qatar.

Raw power

42

40 NEW RELEASES ROUND-UP What’s hot in new machinery this month? Page 49 SECTOR ANALYSIS: CEMENT TECHNOLOGY Your guide to the latest in the cement plant, pump and truck technology. Page 53 TOP TEN PREVENTATIVE

Page

MAINTENANCE TIPS The indespensible dos and don’ts of ensuring that your company learns that prevention is better than cure.

Page

57 FIND ME A DEALER: IRAQ

Guide to the dealers in Iraq. Page

58 THE LAST WORD

The boom in Brazil.

Editor’s Letter

PubliSher Dominic De SouSa GrOuP COO naDeem HooD ManaGinG DireCtOr RicHaRD JuDD

Am I drIvIng sAfely? Well, no.

R

elative to most of the other people in our offices, I live out in the sticks on the very outskirts of Dubai. By that I mean cross the road and there is nothing left of the metropolis, just sand, Land Cruiser drag races and oryx. Because of the unfinished access to the community I live in it is necessary to take the remote Dubai Bypass Road to get home.

Often this means I’m sharing six lanes with the heavy trucks that use the road to avoid the ban on peak hour driving through the city. Away from the patrolled inner roads and industrial areas, it also seems to be where they go to test the very outer limits of their vehicle’s abilities.

eDiToRiaL eDitOr STepHen WHiTe stephen@cpidubai.com +971 4 440 9110 DeSiGn DireCtOr RuTH SHeeHY ruth@cpidubai.com GraPhiC DeSiGner GLenn RoXaS glenn@cpidubai.com JuniOr DeSiGner peRcivaL manaLaYSaY COntributOrS Dave ReeDeR, KaRen YounG aDveRTiSinG PubliShinG DireCtOr RaZ iSLam raz@cpidubai.com +971 4 440 9129 COMMerCial DireCtOr micHaeL STanSFieLD michael@cpidubai.com +971 4 440 9128 ciRcuLaTion DatabaSe anD CirCulatiOn ManaGer RaJeeSH m rajeesh@cpidubai.com +971 4 440 9147 pRoDucTion

Long sweeping interchanges become high speed corners to feel the excitement of leaning several tonnes of concrete against gravity. Endless straights the perfect place to ignore recommended speed limits and get over taking that truck ahead that is going at 2 km/h less. It’s classic truck driver stuff and not unique to Dubai or the region at all, but then most places in the world don’t have the same volume of traffic, travelling at that speeds in temperatures regularly passing 45 degrees.

For reasons that shouldn’t surprise anyone, there are a lot of blow-outs on the road. One hill in particular is layered in rubber by August forcing other road users to swerve and sway into the path of trucks to avoid the litter.

The RTA is currently considering following international practice on spot testing tyre pressure and quality that could force companies to put pressure on drivers and fleet managers to take greater responsibility. It has already said that it will take company licences away if drivers fail its random vehicle defect clearing system.

I support them in their efforts but on the outskirts of Dubai, I have my doubts that offenders will be caught. In fact unless the spot checks spread to roads like the Bypass Road then careless companies and drivers will continue to run the gauntlet on safety.

It amazes me that some firms are still sending out reckless drivers in trucks dressed up in their branding and logos. We’ve now had many years of truck and driver safety campaigns and yet it is often difficult to see a change in truck driver habits. When you’ve seen full trucks tipped on their sides and passenger cars crushed and in flames because a truck driver failed to brake properly like I have, then there comes a point you realise that something must be done.

To my embarrassment I’ve never phoned a number on the back of trucks that have a ‘Am I driving safely?’ sticker. But, no more. The high temperatures may be starting to ease off, but it is time to start turning up the heat drivers and companies to take other road user lives seriously.

PrODuCtiOn ManaGer JameS p THaRian james@cpidubai.com +971 4 440 9146 DiGiTaL www.constructionmachineryme.com DiGital ServiCeS ManaGer TRiSTan TRoY maaGma Web DevelOPerS JeRuS KinG BaTion eRiK BRioneS JeFFeRSon De JoYa online@cpidubai.com +971 4 440 9100 puBLiSHeD BY

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

ISSUE 11 2012 SEPTEMBER

CEMENTED REP

PUBLICATION LICENSED BY IMPZ

Concrete facts on sector

A KUT ABOVE

Volvo’s downhill racer

WAITING GAME Handling Qatar’s pause

Stephen White, Editor, CMME

STETTER: IRAQ IS NEXT

GROUND-BREAKING! Bauer Machinery digs in **

**

*

*

PLUS: & VIEWS POWER TEST PREVENTATIVE MAINTENANCE PLUS:ACROSS ACROSSTHE THEINDUSTRY INDUSTRY NEWS NEWS & VIEWS RAW OFFROAD BE A BETTER BUYER

ANDMORE MORE **AND

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

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CONSTRUCTION

MIDDLE EAST

September 2012

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huahaDbhia Abateut arm AtDbAhaubtauD AbD aetrm teearm te In In In e rm th th th te t t t a a In s s s e u u u th e valeis seitvissite visuits at PleaPsle P Palesea visit i A b u Dh a b Please visit

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Putzmeister Concrete Pumps GmbH · 72631 Aichtal · Germany · www.putzmeister.com Putzmeister Middle East · Jumeirah Lakes Towers (JLT) · Swiss Tower · Office 1403 · P.O. Box 262657 · Dubai, U.A.E. · Tel: +971 (0) 4 454 27 83 · Fax: +971 (0) 4 454 27 82 Putzmeister Putzmeister Putzmeister Concrete Concrete Pumps Concrete Pumps GmbH Pumps GmbH · 72631 GmbH · 72631 Aichtal · 72631 Aichtal · Germany Aichtal · Germany · ·Germany www.putzmeister.com · www.putzmeister.com · www.putzmeister.com Putzmeister Middle East · Jumeirah Lakes Towers (JLT) · Swiss Tower · Office 1403 · P.O. Box 262657 · Dubai, U.A.E. · Tel: +971 (0) 4 454 27 83 · Fax: +971 (0) 4 454 27 82 For inquiries: Putzmeister Putzmeister Putzmeister Middle Middle East Middle East · Jumeirah ·East Jumeirah · Jumeirah LakesLakes Towers Lakes Towers (JLT) Towers (JLT) · Swiss (JLT) · Swiss Tower · Swiss Tower · Office Tower ·Saudi Office 1403 · Arabia) Office 1403 · P.O.1403 · Box P.O. ·262657 Box P.O.262657 Box· Dubai, 262657 · Dubai, U.A.E. · Dubai, U.A.E. · Tel: U.A.E. · +971 Tel:Qatar, +971 · (0) Tel:4U.A.E.) +971 (0) 4544 27 454 (0) 83 427 454 · Fax: 8327 · Fax: +971 83 · +971 Fax: (0) 4+971 (0) 4544 27 454 (0) 82 427 454 8227 82 (General) (Bahrain, Kuwait, (Oman, ForBawidamann, inquiries: Regional Director Jens Bastian Dreher, Sales & Project Manager Derong Li, Sales & Project Manager (General) Kuwait, Saudi Arabia) (Oman, Qatar, U.A.E.) E-Mail: E-Mail:(Bahrain, DreherB@pmw.de E-Mail: LiD@pmw.de For inquiries: For inquiries: ForBawidamannJ@pmw.de inquiries: Mobile: +971 (0) 506009972 Mobile: +971 (0)Dreher, 501009985 Mobile: (Oman, +971Derong (0)Qatar, 504818865 Jens Bawidamann, Regional Director Bastian Sales &Saudi Project Manager Li, Sales & Project (General) (General) (General) (Bahrain, (Bahrain, Kuwait, (Bahrain, Kuwait, Saudi Kuwait, Saudi Arabia) Arabia) Arabia) (Oman, (Oman, Qatar, U.A.E.) Qatar, U.A.E.) U.A.E.)Manager E-Mail: BawidamannJ@pmw.de E-Mail: DreherB@pmw.de E-Mail: LiD@pmw.de JensJens Bawidamann, Bawidamann, Jens Bawidamann, Regional Regional Director Regional Director Director Bastian Bastian Dreher, Bastian Dreher, Sales Dreher, Sales & Project Sales & Project & Manager Project Manager Manager Derong Derong Li,Derong Sales Li, Sales &Li,Project Sales & Project & Manager Project Manager Manager Mobile: +971 (0) 506009972 Mobile: +971DreherB@pmw.de (0) 501009985 Mobile: +971 (0) 504818865 E-Mail: E-Mail: BawidamannJ@pmw.de E-Mail: BawidamannJ@pmw.de BawidamannJ@pmw.de E-Mail: E-Mail: DreherB@pmw.de E-Mail: DreherB@pmw.de E-Mail: E-Mail: LiD@pmw.de E-Mail: LiD@pmw.de LiD@pmw.de Mobile: Mobile: +971 Mobile: +971 (0) 506009972 +971 (0) 506009972 (0) 506009972 Mobile: Mobile: +971 Mobile: +971 (0) 501009985 +971 (0) 501009985 (0) 501009985 Mobile: Mobile: +971 Mobile: +971 (0) 504818865 +971 (0) 504818865 (0) 504818865

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News Round-Up

NEWS

KSA to Spend $60bn on logiStic And trAnSport infrAStructure

Analysts have said that plans by Saudi Arabia to spend in excess of $60bn on boosting the country’s logistics and transportation infrastructure have led to the issuance of this year’s highest number of Islamic bonds, or sukuk, LoNg cutting reliance on DISTANcE crANE direct government NASA sets an out of this world funding and record for the most remote crane making it operation ever attempted (248m possible for km) when the Skycrane safely private investors lowers the Mars curiosity from last June to rover onto the red planet’s surface. buy into the projects.

“The government realised that instead of putting money into projects itself, it was better to involve professional institutions, which can best ensure progress,” Murad Ansari, riyadh-based analyst

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

at investment bank EFg-Hermes Holding, was quoted as saying

by Bloomberg.

Data from the Ministry of Finance reveals that the Kingdom’s 2012 budget includes $9.4bn for transportation projects including the expansion of King Khalid International Airport and building 4,200km of roads, in addition to the 28,100km already under construction.

Among the major projects included in the plans are an electrical subway train network linking major areas of riyadh and the expansion of King Abdul Aziz international airport in Jeddah.

Moving cranes from UAE to KSA pushes Arabtec into loss

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rabtec, one of the UAE’s largest contractors, claims the costs of moving cranes and equipment into the Kingdom of Saudi Arabia

September September 2011 2012

has contributed to its registering a loss in the first financial half of 2012.

The Saudi Arabian market has one of the most competitive and dynamic equipment supply markets, but Arabtec - one of the region’s single largest owner of construction equipment - has made the strategic decision of moving much of its fleet into the Kingdom as it continues to work on a number of high profile projects.

“We see this loss as part of an ongoing move on the part of Arabtec to diversify the geographic project base,” Saleem Khokhar, the head of equities at NBAD’s asset management group, told The National newspaper. “We expect the strategy to have some impact on profits in Q3, too, but to a lesser degree.

Analysts have been caught off guard by this as they

have been unsure which quarter the hit would fall into.” According to Arabtec, rising costs ensured that it made a loss of $3 million. The current value of its property, plant and equipment is valued at $86 million down from $93 million at the end of 2011.

The company added in its statement that it is currently negotiating with a Syrian client on the protection of assets relating to a project in the troubled country: “to realise its assets and ensure that any exposure on its financial statements is covered.”

It added: “While it is difficult to quantify the effect of these events on the future financial statements, the significance of this impact will depend on the extent and the length [of time] these events and their effect will last.”

Company intelligenCe one of Saudi arabia’s biggest contractors, Al-OmAier TrAding And COnTrACTing (OTC) recently toured Sem’s (formerly Shandong engineering and machinery Company) Chinese operation following the purchase of a number of machines. otC, which has a Cat-dominated fleet of more than 200 wheel loaders, recently purchased 11 659C loaders off Sem KSa dealer tamgo.

Following the deal, abdullah ibrahim alomaier, the executive director at otC, visted Sem’s Chinease factory earlier this summer, test driving the Sem639C and Sem669C wheel loaders to experience the performance of Sem machines. nAss COmmerCiAl , part of Bahrain-based nass group, has said it has taken delivery of two new units of CAse wheel loaders designed to provide extra safety on the work site. the Case 1021F wheel loaders provide the operator with the ability of fine-tuning the engine and hydraulic output to a meet the requirements of a specific task. the 1021F is powered by tier 4 interim-compliant engine and 296bhp, which uses a hydro-mechanical transmission. it is equipped with a rearview camera to enhance the visibility for the operatorby providing live feed to a colour monitor in the cab.

Uae-based KAnOO mAChinery And COnsTruCTiOn equipmenT , a member of the Kanoo group, is looking to Saudi arabia to provide the most opportunities for organisations involved in the oil and gas and construction sectors. “the projects i see as most significant are all based in Saudi arabia,” said Robert Jennings, general manager of Kanoo machinery.

tendeR UpdateS

1

sorouh real estate (Abu dhabi) is looking for design and construction of 12-storey reem diamond Tower, including duplex and penthouse, two basement roofs and associated facilities such as swimming pool, Jacuzzi and smart home systems as part of the reem diAmOnd TOwer prOJeCT - Al reem islAnd develOpmenT .

Wolffkran Arabia looking to free contractors

AfricA And Middle eAst gAins eAse KoMAtsu’s chinA concerns The gap between sales of Komatsu equipment in the Middle East and Africa region and China continued to close in May as Chinese sales fell for the 14th consecutive month.

Sales of Komatsu equipment in Africa increased by 82% in May and the world’s second largest construction machinery company also saw gains of 19% in year on year sales in the Middle East.

Sales of construction equipment to the Middle East and Africa reached $1.6 billion in 2011 up from $1.3 billion in 2010. At the same time sales in China fell from $4.2 billion to $2.5 billion.

Despite analyst Freedonia predicting last week that construction activity will stay at 8.5% through to 2020 in China, companies like Komatsu

have been frustrated by tightening government purse-strings and a slow-down in residential building.

It may be struggling in the country but Japan’s Komatsu is still revered among Chinese manufacturers for its progress in global markets.

A report by Wu Huimin, analyst at China International Capital Corporation, said Chinese companies should follow Komatsu’s example on the international stage.

“A low level of market consolidation, simple product structure and low sales in overseasmarkets - these are the characteristics of China’s construction machinery sector,” said Wu. “For further development, Chinese companies should follow Komatsu’s model by improvingproduct

2

local Al-mAbAni generAl COnTrACTOrs has been awarded an estimated $58.5-million main contractfor the construction of a new apron at King Khalid international Airport in riyadh.

The company regsitered the lowest bid by beating six others including the TAv and local Al-Arrab Contracting Jv which had quoted $76 million for the contract.

3

development of resTless plAneT Theme pArK in dubai comprising a fully air-conditioned indoor resort and theme park, including three rides and more than (100) life-like, real-size robotic dinosaurs is reportedly back on track to be completed by end-2013.

pUtzmeiSteR aCqUiReS tRUCK mixeR maKeR inteRmix german concrete pump manufacturer, Putzmeister has

Wolffkran Arabia’s new dubai offices, which also house Wolffkran’s regional sales office, covering the Middle east, india and Africa regions, will also host new training facilities for operators and engineers and a new 24-hour technical support operation. the joint venture was originally set up in Abu dhabi in 2006 with the aim of providing the uAe with Wolff tower cranes on a sale or rental basis. it currently has a fleet of 150 cranes in operation across the country. “dubai is a natural hub, since you’re going to find a lot of people from different nations. it seems to be a melting pot now, so it’s a perfect initial position for our growth course,”said the chief executive of Wolffkran, Peter schiefer. “the Middle east region is one of the key regions in my eyes right now. We felt that we needed to have a big presence,” he added.

Martin Kirby, the managing director of Wolffkran Arabia, said that the majority of contracts on the market these days were for rental deals. “in times of economic difficulties contractors have a preference for utilising suppliers with all-inclusive packages including the crane, the crew and the customer service. this frees them of the need to maintain their own assembly crew and the liabilities that this comes with,” he explained.

announced its acquisition of truck mixer maker intermix, in a move aimed at expanding the company’s presence in the concrete sector.

As the third-largest producer of truck mixers after liebherr and schwingstetter, privatelyheld intermix produces up to 800 machines annually.

Putzmeister, which is owned by china’s sany heavy industries, develops, manufactures and sells equipment worldwide, in particular concrete pumps for construction, tunnel

construction and large scale industrial projects. the company said that, with immediate effect, it will be distributing truck mixers through its global sales network. truck mixers are used at the building site together with truck-mounted concrete pumps and stationary concrete pumps. the move gives credibility to Putzmeister’s claim that sany’s leadership are keen to ensure the manufacturer stays an independent market leader,

September 2012 2011 September

CONSTRUCTION CONSTRUCTION MIDDLE EAST MIDDLE EAST

99

News Round-Up

BIG BUCKET

The new Doosan DL420A wheel loaders offer bucket capacities ranging from 2.5 to 4.5 m 2-col black

Dredgers hide half tonne of cocaine Argentinian customs police say they have stopped a shipment of cocaine concealed in heavy dredging equipment being air-freighted to the Nigerian capital of Lagos.

Comansa Jie playing it Cool with the world’s highest towers Linden Comansa’s Chinese subsidiary, Comansa Jie, has completed the construction of the first of two record-breaking cooling towers in India.

According to Comansa its cranes are being deployed by BGR Energy Systems the company in charge of one of India’s most important energetic projects. With an initial budget of $820 million, the Kalisindh Thermal Energy Plant is part of an ambitious plan from the Rajasthan state government, who expects to produce up to 1,200 Mw (2 x 600) when the plant is operative.

For the construction of the two cooling towers, BGR Energy Systems is using two 21CJ290 tower cranes from Comansa Jie, with maximum load capacity of 18 tonnes. Both have jib length of 74 meters, the maximum of this model, which allows them to reach the tower’s base diameter, of 142 meters.

To build the towers up to 202 meters, which it is believed that makes them the world’s highest cooling towers (ahead of Niederaussem in Germany), both cranes have been jacked-up with a hydraulic cage in different phases, until they reached 217 meters of height. Furthermore, the 21CJ290 required rope anchorages to the shell wall of towers, assuring an optimal performance and the total

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CONSTRUCTION CONSTRUCTION MIDDLE EAST MIDDLE EAST

September September 2011 2012

stability of the cranes.

The construction of the first cooling tower ended this June. To dismantle the crane at such height, and without any access for a mobile crane, a new dismantling device, designed by Linden Comansa, was used. This device allows to disassemble the jib sections and to hoist them down inside the cooling tower. Dismantling the first jib sections, the jib length of the 21CJ290 was decreased to 35m, shorter than the minimum diameter of the tower, which allowed enough space for 21CJ290 to jack down the tower crane with the hydraulic cage.

The 21LC290, with Flat-Top design, is one of the most successful models from Comansa Jie. According to the company other Indian construction companies “are showing large interest in this model, which has shown is an excellent solution to build cooling towers”.

Currently, there are seven 21CJ290s working on energy plants across the country. As well as the two units at Kalisindh, BGR Energy System has another couple of 21CJ290 18t at the Marwa plant (2 x 500 Mw), while Indian engineering giant Larsen & Toubro is using two units at Rajpura plant (2 x 700 Mw) and another in the construction of the Talwandi Sabo plant (3 x 600 Mw.)

JEDDAH METRO GO The Saudi transport ministry and Jeddah have approved the first phase of the Red Sea port-city’s metro project.

MikA’s silvER Mika Sugimoto of Komatsu Women’s Judo Club won a silver medal in the over 78kg category during the Judo competition at the London 2012 Olympic Games.

Weighing in excess of half of a tonne and thought to be heading to Europe via the African state, the director-general of Argentina’s customs agency, told local media that the cocaine was found tightly packed into 490 brightly coloured bricks and was discovered after the dredging equipment was dismantled.

Maria Ayeran added that suspicions regarding the shipment

were raised when it became clear that a Nigerian company that was to receive the shipment did not exist.

Sniffer dogs were used to scan the machinery and officers “found 536 kilos of pure cocaine inside thick walls of lead and steel” “Today the link with Africa is a new route that they are exploiting and is in development,” she is reported to have told the Associated Press agency.

US authorities extradited a Panamanian warehouse owner in July on suspicion of shipping $100 millions of dollars worth of cocaine hidden in construction machinery via Mexico.

GOT A JOB TO DO? WE’RE HERE TO HELP Terex Construction in the Middle East

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From site dumpers to off-highway rigid trucks, compact excavators to backhoe loaders – we’ve got the right machine to do the work for you.

Terex offers the complete solutions: Tough, Quality Range of Construction Equipment for all Applications Network of Dealers Throughout the Middle East World Wide Parts Distribution Aftermarket Support Minimising Downtime

From choosing the right equipment, to providing the parts and service to keep it producing for years to come, the responsive Terex team is dedicated to your success.

Terex Middle East LLC Pinnacle Building, Sheikh Zayed Road P.O. Box No 282325 Al Barsha, Dubai, UAE Tel: + 971 4 3990381 Visit our new website: www.terexconstruction.com I’m a QR code.

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News Round-Up

KAEC SEAport to ContributE $2.6bn to SAudi Gdp The seaport which is part of the King Abdullah Economic City is expected to contribute $2.6bn to Saudi Arabia’s economy annually when it opens next year, an official associated with the project revealed.

Ahmed Linjawi, president of the city services and industrial division at Emaar, the company behind the development of the seaport, told Arab News that the project would also create up 15,000 jobs.

“The first phase of the seaport will have a capacity of four million TEUs and will comprise of approximately four and half million kilometers of deep water berths capable of handling the largest cargo vessels in the world, as well as almost three quarters of a million square meters of container storage area, able to store over 80,000TEUs at any one time,” Linjawi explained.

He added that work on the seaport would continue following the scheduled opening, with the completion of the first phase scheduled for 2015.

Progress on the port is well underway, with more than 10 million m3 of dredging and excavation completed and nearly 800tns of concrete blocks ready to be utilized to construct the quay wall.

“We are also developing a roll out terminal for automobiles and other equipment.”

FAMCO claims finance offers efficiency

Multi-brand equipment and commercial vehicles distributor FAMCO is now offering financing for trucks, buses, construction equipment, forklifts, generators and compressors in the UAE. FAMCO Financial Services uses a multibank approach and offers customers the ability to conserve their capital while providing an additional credit line, said the company.

Paul Floyd, Managing Director at FAMCO said, “We have now developed a full solution package for our customers.

FAMCO Financial Services is another ingredient within a

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September September 2011 2012

more sophisticated sales cycle aimed at satisfying a more demanding customer, where value and total cost of ownership have become more important. Now, we can include financing, service contracts and insurance in a single monthly payment, greatly assisting our customers with a cash efficient solution to the operation of their fleet”.

The newly launched financial services unit can also provide insurance and service agreements in one monthly payment allowing customers a significant cash-flow advantage. Shariah compliant options are also available.

RUThMAnn ExplAinS ShARinG DiSTi DEAl

Al Wasl Trading Group and Kanoo Group are to share the distribution of German truck mounted crane specialist Ruthmann in the UAE, Saudi Arabia, Bahrain and Qatar.

The Al Wasl Trading Group, based in Abu Dhabi, is responsible for the complete sales and service activities of its Stieger and Cargoloader products in Abu Dhabi and Dubai while Kanoo is responsible in Saudi Arabia, Bahrain, and Qatar.

“We looked for professional and dependable partners in the Middle East. The Al Wasl Trading Group

has earned an excellent reputation as a sales and service partner for Versalift work platforms. The Kanoo Group too, has a lot of experience and know-how,” said Uwe Strotmann, general sales manager at Ruthmann.

“For years, Kanoo Equipment Rental has been renting out professional industrial trucks, hoists, construction machinery and access technology in the entire Gulf. Their diverse rental lineup includes forklifts, telescopic handlers, crawler excavators, and mast climbing work platforms.”

Al Wasl Trading Group and Kanoo Group are to share the distribution of German truck mounted crane specialist Ruthmann in the UAE, Saudi Arabia, Bahrain and Qatar.

The Al Wasl Trading Group, based in Abu Dhabi, is responsible for the complete sales and service activities of its Stieger and Cargoloader products in Abu Dhabi and Dubai while Kanoo is responsible in Saudi Arabia, Bahrain, and Qatar.

“We looked for professional and dependable partners in the Middle East. The Al Wasl Trading Group has earned an excellent reputation as a sales and service partner for Versalift work platforms. The Kanoo Group too, has a lot of experience and know-how,” said Uwe Strotmann, general sales manager at Ruthmann.

“For years, Kanoo Equipment Rental has been renting out professional industrial trucks, hoists, construction machinery and access technology in the entire Gulf.

Their diverse rental line-up includes forklifts, telescopic handlers, crawler excavators, and mast climbing work platforms.”

QUALITY & STRENGTH Digging your way to success

Al Khobar P.O.Box: 2841, Al Khobar-31952, Saudi Arabia.

Tel: + 966 3 8576769, Fax: +966 3 857 4681 Email: marketing@saudidiesel.com.sa Web: www.saudidiesel.com.sa

BRANCHES Riyadh Tel: + 966 1 231 1931 / Fax: + 966 1 231 1031 Jeddah Tel: + 966 2 659 8500 / Fax: +966 2 659 8600 Jubail Tel / Fax: +966 3 363 4050 Madina Tel: +966 4 8697313 / Fax: +966 4 8697310

OTHER AREAS ( DEALERS) Tabuk Tel: +966 4 422 4490 / Fax: + 966 4 422 7225 Unaizah Tel: + 966 6 364 4555 / Fax: + 966 6 364 5969 Abha Tel: +966 7 227 0000 / Fax: +966 7 227 1944

News Analysis

The rental game The elevation of two of the GCC’s leading rental companies into the global scene shows how far the region has come in a short amount of time.

H

ow far the Middle East’s rental companies have come in such a short amount of time. Once a niche part of the scene they have become a powerful part of the construction offering flexibility and reduced risk. Although for the most part, it remains a predominantly Gulf and Dubai-centric sector.

Some of its biggest companies are now among the elite of rental firms. This was demonstrated by Dubai’s Rental Solutions and Services featuring in International Rental News annual list of the world’s Top 100 Rental Firms.

Joined by Byrne Equipment Rental, it is the first time that Middle East companies have entered the listing, indicating a change in the global market and the increasing shift to rental from buying in the region.

According to publishers KHL Group’s IRN 100 Survey, “worldwide equipment rental revenues grew significantly in 2011 as contractors and other equipment users increased their reliance on rental suppliers”.

Rental companies in all regions reported revenue growth last year, although European firms lagged behind the rest.

“Total rental-related revenues at the world’s top

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100 rental companies grew by 13.3% last year, with revenues at the top 10 growing on average by 22.9%, after adjusting for currency changes,” said KHL. The full survey is published in the July-August issue of International Rental News (IRN).

Emerging markets continues to increase their participation in the list, with Chinese and Middle East companies in the top 100 for the first time.

Chinese tower crane rental company Shanghai Pangyuan Construction enters at number 90 with revenues of €77 million, while Dubai-based Rental Solutions & Services (RSS) and Byrne Equipment Rental enter at 85 and 93, respectively.

Capital expenditure on fleet was also up dramatically in 2011, with the top 25 spenders investing €5.7 billion, gross, in their fleets. That is more than double the €2.5 billion in 2010 and reflects high replacement investment by rental companies in the US, Japan and Australia.

Murray Pollok, the report’s author, said; “A mix of factors contributed to the growth in rental last year. Many of the biggest rental companies in North America and Europe saw rental revenues recover from depressed levels in 2009 and 2010, while in developing areas of the world rental companies are expanding rapidly as the rental concept catches on.

Speedy INterNatIoNal’S $31m letS It race INto lead for “youNgeSt fleet” IN the mIddle eaSt British equipment rental firm Speedy International has said it has invested a total of $31.3 million in its Middle East operations since setting up its base the UAE in January 2010.

“We now boast the most technologically advanced and youngest fleet in the Middle East, with a focus on providing the latest in environmentally friendly and highly efficient equipment,” said Andy Carter, managing director of Speedy International.

Future plans include the opening of a new $4 million, 30,000m2 regional hub at the ESNAAD Offshore supply base at Mussafah, Abu Dhabi.

The company now has bases in the UAE, Egypt, Oman and Saudi Arabia, and recently opened up offices in Qatar supporting two major infrastructure firms with temporary power solutions.

“With the UAE as our base, we cater to all geographies, including South Asia and Asia Pacific,” said Carter.

Speedy willbe promoting its Oman and recently opened Qatar bases. Speedy is currently catering to different sectors in both countries, with site offices being set up throughout the MENA and Asia Pacific regions.

The Speedy International team will be showcasing the firm’s new state-of-the-art fleet, its availability and capability, here in the Middle East.

“We were impressed by the feedback we received from our first outing at ADIPEC in 2010 and are looking forward to even greater success in 2012. ADIPEC is the largest exhibition of its kind in the Middle East and is a must-attend event for industry suppliers such as ourselves,” said Andy Carter, Managing Director of Speedy International.

Apart from the UAE operations, Speedy will also be promoting its Oman and recently opened Qatar bases. Speedy is currently catering to different sectors in both countries, with site offices being set up throughout the MENA and Asia Pacific regions.

“We look forward to meeting with representatives from national and international oil companies, industry leaders and experts in the field of oil and gas as we believe that we have the flexibility and Asset services available to meet the varied clientele requirement,” Mr Carter added.

The report continued: “This trend is most evident in North America, where rental penetration rates are increasing.”

Rental companies have become a fixture in mature markets such as North America and Europe where contract margins have narrowed and where the small contractors are still able to compete for work that may not be profitable for those maintaining large fleets.

Returning to the Gulf, the UAE is a relatively mature market in terms of construction and a country where capital expenditure on niche or expensive equipment has become a difficult proposition during the downturn. To a large extent rentals fulfil a need to enable contractors to serve clients quickly without over extending themselves.

It is also a country where dealers and OEMs have had to think on their feet in terms of managing their own fleet and how to ensure that it remains in use.

Subsequently it is now home to what you would classify as traditional rental companies such as Byrne that offer temporary solutions such as power generation and housing as well as organisations such as Wolfkrann Arabia, A joint venture between the Kanoo group and German tower crane manufacturer Wolffkran.

Wolffkran Arabia first set up in 2006 and moved to new its new Dubai offices, which will now house Wolffkran’s regional sales office covering the Middle East, India and Africa regions, and has balanced maintaining a sales presence while forging a rental business during the downturn.

It currently has a fleet of 150 cranes in operation across the country.

“Dubai is a natural hub, since you’re going to find a lot of people from different nations. It seems to be a melting pot now, so it’s a perfect initial position for our growth course,”chief executive of Wolffkran, Peter Schiefer told Big Project’s Melanie Mingus at its opening.

“The Middle East region is one of the key regions in my eyes right now. We felt that we needed to have a big presence,” he added.

Martin Kirby, the managing director of Wolffkran Arabia, said that the majority of contracts on the market these days were for rental deals.

“In times of economic difficulties contractors have a preference for utilising suppliers with all-inclusive packages including the crane, the crew and the customer service. This frees them of the need to maintain their own assembly crew and the liabilities that this comes with,” he explained.

Meanhile Byrne Equipment Rental announced last month that its new $4.08m headquarters at Dubai Industrial City, would be complete by the year 2013.

The 401,000m2 headquarters will house Byrne’s main offices in Dubai, as well as the general rental and projects and events division. It will also include offices, warehouses and workshops with an estimated staff of 160 employees.

“There is a growing demand across the region from companies who prefer to rent rather than purchase and maintain expensive equipment, which is a drain on their capital,” said CEO Graeme Clark.

September 2012 2011 September

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Expert Opinion

Cash-flow is king FAMCO Financial Service’s Mahmoud Turkieh,talks about the challenges of raising finance in the post-downturn world.

T

MahMoud Turkieh Financial ServiceS Manager FaMco

he 2008 recession taught all of us in the UAE a very painful but important lesson – that cash is king. I like to stretch that a bit further and state cash flow is the most important aspect of any business.

Money makes the world and your business go round. How much of it you have tied up within your company can determine how fast or how slow it spins.

As many of us have experienced over the past few years, a lack of liquidity has made investing in fleets and plant particularly tricky.

Raising finance through traditional channels such as banks and financial institutions has become much more difficult than it was previously.

This has had the effect of forcing companies to reel back their spending plans and pour revenue into covering costs in the company. Some have turned to raising finance to cover their costs rather than investing in the company and this is not a viable option in the long-term.

The series of economic and financial crises over the past few years has changed many bank’s attitudes to lending money to companies in the construction sector FAMCO’s home country of the UAE. They struggled to reclaim back money borrowed to buy assets when the downturn hit and now they are unsure whether heavy equipment is a viable investment.

However as a supplier and distributor we rely on our customers to continue to grow. For obvious reasons if they can’t invest in fleet then we can’t secure new business.

To put it another way, we have learnt that the best way for us to grow is for our customers to grow as well.

But how do they expand their businesses at a time when cash can be harder to find than before?

There were a number of ways we could do it but we realised we needed to commit 100% and opened an

“CASH FlOW IS THE MOST

IMpORTAnT ASpECT OF Any BUSInESS.”

entirely new arm to the company, FAMCO Financial Services, to deliver a workable option for our customers.

We have introduced the motto Dream bigger, work smarter for FAMCO Financial Servicesand I think it’s an approach that best sums up where companies should be heading in 2012. And it fits in with what we are trying to achieve with entering into financing.

Our customers’ businesses have moved on since the downturn and they need more from us, and it has changed the way we sell: they need us to more than just to sell a machine; they want us to tailor a solution that fits their requirement.

Consequently we have been reshaping our operation to better suit them too. At the same time it opens up opportunities for us as long as we can help them work smarter when they do dream bigger.

We’ve put a lot of effort into the development of our service and parts operations, increasing our portfolio of maintenance agreements and other soft products, plus the introduction of our rental business, but the launch of FAMCO Financial Services is a further evolution from the way we have done business in the past.

Offering a range of tailor-made financing packages for truck, bus, construction equipment, forklifts, generators and compressors, it moves us further away from discussions about just the purchase price, and closer to our goal of developing a full solution package for our customers.

For example, let’s say a customer won a bid and needed a fleet of excavators but had the cash to only pay one. We would now be able to be smart with this customer’s cash and ask him to explore FAMCO Financial Services where he can not only put a monthly payment towards his required fleet, but also bundle up a service package and insurance along with the monthly payment.

FAMCO Financial Services is a vital ingredient within a more sophisticated sales cycle servicing a more demanding customer, where value and total cost of ownership have become more important. Including financing,

service contracts and insurance in a single monthly payment, greatly assists our customers with a cashefficient solution for the operation of their fleet.

The newly launched unit utilises a multi-bank approach and offers customers the ability to conserve their capital while providing an additional credit line, while using FAMCO’s multi-bank relationships for financing. In addition to equipment financing, FAMCO Financial Services can combine insurance and service agreements in one monthly payment allowing customers a significant cash-flow advantage. Options can be Sharia’h compliant and capable of meeting the needs of an evolving and ever- demanding market.

In the business climate of 2012 and 2013 (and possibly for much longer), there won’t be many large fleets paid for with surplus amounts of cash and most companies finance that through credit lines or they may have new credit links they have negotiated.

So we’re offering another credit line option for our customers and make that part of a complete package.

We’re striving to be the most customer-focused supplier in the region and FAMCO Financial Services is one element that further solidifies the relationship with customers and principals that we have built over many years. This facility takes our customer service one step further and helps customers free up their cash flow to get the machines they need.

It may not be the cheapest from day one but over a lifetime it will give the greatest value for money.

The industry is learning that smart fleet management is about demanding tailor made and comprehensive solutions. The last few years may have been tough but we have learned that you have to understand what your customers want and need and we want to be pioneering the way in our offering of a total solution concept. expert opinion is a new series from FaMco (al-Futtaim auto & Machinery company) that will highlight major issues affecting the heavy equipment industry.

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Heavy Hitters

A driving force

CMME interviews the head of Bauer’s Middle East operation and finds a company eager to push on and break ground.

By Gavin Davids

A

s a young man, Dieter Stetter, always wanted to discover the world, but unfortunately for him, it had already been found, so he settled for helping build it instead. In a career that has spanned decades, Stetter has helped oversee Bauer’s operations in places as far flung as North Africa and the Far East, turning the German piling manufacturer into a truly global player.

In an interview with CMME, the managing director and chairman of Bauer tells us about the lessons he’s learned from his time in Asia and how he intends to bring them to bear on the region.

Having started out in Saudi Arabia as a young trainee, Stetter moved to China in 1984, where he remained till 2008, overseeing operations in that region. With the experience he’s garnered there, he’s well placed to judge the impact that region is going to have on the global construction market.

“In Germany, we have dual education systems. We have the standard universities, and then we have the

“THErE’S A LoT oF EqUIpMENT SLUMBErING

IN SoMEBoDy’S yArD. THIS EqUIpMENT CAN BE MoBILISED To SATISFy DEMAND.”

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University of Applied Sciences, which is more practical.

In this study, you have two practical semesters where you go overseas to work,” he explains, outlining how he started out on his path.

“In my first overseas semester I went to Saudi Arabia, where I ended up working with a road construction crew. This was where I got the ‘overseas bug’, so to speak,” he reminisces, adding: “From that time onwards, I only wanted to go overseas, so when I completed my studies and applied for jobs, for each one I asked, “How long before I could go overseas?”

Some said three years, others said five, but at Bauer they said: That depends on you.”

So with the decision made for him, Stetter threw himself into the job and within six months found himself in North Africa, working on projects in Libya and Algeria, before moving to the Far East in 1984.

Having been around when modern development of the Middle East was in its infancy, Stetter is impressed by the rate of progress that’s taken place since.

“Even while not being here, I observed the big boom happening here and how people were queuing up for construction machinery. I think our (Bauer’s) largest order was 25 machines in one single order, (this was) because some companies felt that they had ‘missed the boat’ and they came to start a very big company. Unfortunately, some of them did this

“WE ArE lookInG AT IrAq, WHErE I WoUld

SAy THErE IS UnlImITEd poTEnTIAl, provIdEd SECUrITy ISSUES CAn BE UndEr ConTrol.”

in 2006 and 2007, and of course, that was too late,” he says. “There was a lot of pain after that for many companies and the equipment was redeployed in other areas, but despite that, I think the market here is still a very good market.”

Having seen it all before in the 1997 Asian Financial Crisis, Stetter says that companies can learn a lot from what manufacturers did and didn’t do back then.

“There were European manufacturers who just closed their offices and (went home). At the time, we were struggling very hard and fortunately, we hired some of the very good people who had been laid off by the contractors and we developed a very decent business out of it,” he says.

“Customers have told us that they would never buy equipment from another company because they left them alone during the hard times,” he chuckles, adding that he thinks that same could be true in the GCC region. Furthermore, he points out that the market in the UAE is chock-full of machinery that’s just lying there; ready to be rolled out at a moment’s notice. This offers companies a tantalising opportunity, he says.

“Especially in the UAE, there’s a lot of equipment available that is slumbering in somebody’s yard. All this equipment can be mobilised to satisfy initial demand (anywhere in the GCC).”

However, he does caution that certain countries, such as Saudi Arabia, could be difficult to work in given the unique working environment there. As a result, he urges contractors to be cautious while entering the market, and points out that if they haven’t dealt in Saudi Arabia before, then perhaps the grass isn’t always greener.

“I would say that there is some consolidation happening and that the market in the region has very big potential. We are looking at places like Iraq, where I would say there is unlimited potential, provided the security issues can be brought under control.”

This diversification of business is another lesson Stetter has learned from his time in China, and as a result, he has been part of a shift in focus to the oil and gas business, which has seen Bauer develop higher standard oil and gas rigs.

“I would say that initially, this market was initiated to some extent, by what is called the ‘large European geothermal market’, which till now, we’re still waiting for it to develop. There are a lot of geothermal plants in Europe, and initially, our deep drilling machinery was more focused on this, but since the market in Europe is moving too slowly, we’re now redeploying this method to the oil and gas business,” he explains.

“We have rigs with a total load of 450t which is able to drill maybe 6,000 or 7,000m.”

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Heavy Hitters

However, with the main focus on Bauer Machinery being foundation engineering, Stetter says that there have been significant changes recently in the way the company does business, as it strives to keep up with the competition from the Chinese supply lines.

“The competition in the foundation market is growing, there are a lot of Chinese competitors, but compared to what we offer as a company, looking at our range of products, I would say that while we face a lot of competition, there is a lot of specialised equipment that is not produced in China yet.”

As a result, Bauer took the decision to split their product range. While the company used to produce what it termed as ‘universal rigs’ (rigs that allow customers to drill holes in a variety of ways and with a number of attachments, up to seven or eight methods), three years ago it split its product range into ‘premium’ and ‘value’ lines.

“The traditional line was the premium line while the value line basically corresponds with a single operational method,” Stetter explains.

To keep prices down and offer customers the same value as their Chinese competitors, Bauer decided to manufacture their equipment in China, using the same materials, but bringing in its own expertise.

“We have to fight on this basis, so I would say that the most important thing is to have a presence in China as a manufacturer. You have to fight this house to house fight every day, to know what it means.”

“If you just experience the Chinese competition from Europe, you don’t know what you’re doing.

When people say that ‘this equipment is rubbish or no good’, I think it’s a dream. I wouldn’t say that they’ve reached our standards, but the Chinese are working very hard and I think sometimes they have an advantage to us Europeans, in that they listen when a customer says something. We tend to respond and tell the customer where he’s wrong, so I think we have to take them seriously,” Stetter says ominously.

But where he says Bauer does have the advantage is in their specialised equipment which is designed according to project specifications, and as such, is not profitable enough for the Chinese to focus on.

“We can produce three units in ten years and that is certainly nothing a Chinese manufacturer

Stetter is proud of Bauer’s record in the Middle East but is looking forward to the potenital opening up of the Iraq market, which holds so much promise and potential for the piling company.

is interested in looking into. They want to produce a minimum quantity of 100, a maximum of 10,000, figures like that.”

With the opening of the new office/warehouse in the Dubai Airport Free Zone, Stetter hopes that all these revamped approaches can all be tied together and come to fruition. The intention is that the Dubai warehouse will be a staging point to ship equipment out to the neighbouring countries as and when they’re needed.

“As I said, we make some machinery in China, so some customers may order these machines, while we also make tools in Malaysia. So while the big stuff is always order based and we bring it directly to the location, as far as spare parts are concerned, the idea is to basically equip this store properly and try and do all the daily business out of Dubai,” he outlines, adding that the idea is to reduce delivery times as much as possible, so as to ensure customers have minimal delays on their projects.

This business plan brings Stetter back full circle to where he sees things coming back to normal after a period of difficulty in the region.

The UAE market has proved to be especially fruitful for the company, thanks to the presence of several major projects in both Abu Dhabi and Dubai.

“You could say that we’re working on the biggest project in Dubai. This is the Grand Habtoor, where we have two machines,” he said. In addition, the company has also worked on projects such as the Yasat Ali Island Lighthouse, where it sunk 25 piles of 750mm diameter in water 24m deep.

Bauer has also worked on a pedestrian underpass that was built under a main Abu Dhabi road. For this project, it helped secure a secant pile wall, and provided capping beams and anchors. A soldier pile wall with stiffening struts was also installed in the south portal, the company said.

“We’re the only manufacturer in Dubai where we work the subsidiary directly. This makes us even

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Heavy Hitters

From Tufts to toughs The variety of drill rigs used in construction applications has dramatically increased since Otis Tufts introduced the first steam driven pile driver in the 1800s.

This increase in driver types is a direct result of technology’s hand playing a critical role in the advancement of developments that permit various models to cover the range of pile driving applications.

A typical commercial construction job site is a beehive of activity. A typical onlooker may perceive the activity as complete and total chaos; however, the actions of the workers follow a well developed plan with each worker following orders from the chain of command in their respective organisation.

The first major task in most any commercial construction project the establishment of a sound and secure foundation on which the project will rest. There is no shortage of varieties of combinations that a foundation contractor will face as they begin the effort of digging into the earth to begin the process of laying a foundation. Various soil types of clay, sand, and silt, as well as a litany of rock types result in the need for powerful machinery.

Obstacles can be transparent, but still pose enormously difficult challenges to a project. When construction projects are executed in an environment with the presence of water (river, lake, or sea) a cofferdam must be constructed. A cofferdam creates an area void of water for foundations to be built.

Once the site is prepared and tested, a geotechnical engineer’s recommendations are put into effect.

Foundation contractors may have to incorporate a variety of drill rigs to

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accomplish the task of crafting a dependable foundation.

Drill rigs differ from pile drivers by the nature that they penetrate the earth. Drill rigs are often utilized in circumstances where the utilization of traditional pile driving equipment poses a threat or an inconvenience to the surroundings environment, where larger machinery is impractical, or where the removal of soil may not be desired; among other reasons.

There is little argument that most skyscraper buildings are constructed in heavily populated cities across the globe.

The development of these projects creates audacious noise.

Unfortunately many hospitals are also located in these areas.

The loud pounding of a diesel hammer drill rig is often not desired by these institutions, nor is it welcomed by many business owners who strive to keep their businesses profitable during the inconvenience of construction.

Drilling into the earth is a less intrusive option; however, sometimes efficiency is compromised.

Many construction projects, such as those that include renovation to an existing building, may be wrought with access challenges where larger drill rigs are not able to access. Compact drill rigs are able to navigate through narrow passage-ways and manoeuvre nimbly throughout the jobsite to achieve the desired objectives.

Contaminate soil is often expensive to haul away from a jobsite; therefore, drill rigs that do not remove soil from the ground as the drill rig penetrates the earth can be a costeffective solution.

Source: International Construction Equipment

“We can produce three units in ten

years and that is nothing a chinese manufacturer is interested in.” stronger and our market penetration is even higher while we can act immediately,” stetter explained.

Ksa is also a big market for Bauer, he reiterated, with the likes of the haramain railway project between mekkah and medina a major source of income for the company. in addition, he said that the company is pushing for more projects in the holy city as it aims to make its mark in the Kingdom through its representative, Zahid tractors. through its sister company, Bauer construction, the firm is supplying machines to the iconic Kingdom tower, scheduled to be the tallest tower in the world when completed. the golden goose in the region is iraq,he says, revealing that Bauer has begun planning for when the market opens and an the security situation eases: “unfortunately, it’s still a second hand market at the moment. the big issue is still security. especially for european companies providing services out of europe, it has certain limitations, even for our company. We have travel policies where if you have warnings from the embassy, you have to have special measures in place before you send people into the ‘zone’.” however, he points out that europe needs to move quickly into the market as turkish competitors have already begun heavy penetration into iraq.

“With wealth comes peace, and eventually, we hope that the economy will provide the foundation for everyone to be happy. certainly, there’s a hell of a lot of reconstruction to be done, and i would say that it’s a very promising market for the future.”

Buying & Selling

capital gains facts Two months ago, Jonnie Keys, General Manager of Euro Auctions gave CMME a look at the global picture of the used market. This issue he looks at the opportunities for those with machines to sell.

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JCB is one of the few companies that builds both its own chassis and engines, and it also provides Tier 2 kits on machines that are available in other markets. Theoretically you could import a used Tier 3 and re-fit it.

U

sed machinery and construction equipment is now seen as a global commodity, traded like any other asset, being bought, sold and often moved on to another buyer as soon as the auctioneers hammer is down.

With activity in the UAE construction sector flattening during 2012 and many contractors experiencing tougher times due to around $719bn of construction projects being put on the backburner or shelved, much machinery and construction equipment is standing idle across the region.

Heavy equipment, once destined for now cancelled infrastructure projects, is destined to move from the Middle East to where there is a more ready market.

But where are those markets? Where are sellers in the Middle East going to find buyers? Is Australia still the ‘boom market’ it has been for the last 24 months?

Or are there other places in the world with an even greater appetite and keen buyers for certain makes and models?

EuropE - East & WEst With the sharp decline in construction projects, much needed equipment is moving out of the Euro zone and over half of all plant sold at auction or through dealer networks in the last couple of

months has been leaving Europe, much destined for southern hemisphere countries to meet requirements for projects in Australia, South Africa, South America, Central America and India. High in demand is equipment suitable for mining and extraction, with large dump trucks and 20ton+ excavators at the top of the list. Other sought after machinery categories across Europe are: mini excavators, crawler excavators and telehandlers.

Make is unimportant, as long as the equipment is good, late and low hours.

australia / NZ Australia is still buoyant and has an ongoing demand for a specific range of equipment. The ongoing projects in Australia can be divided in to two broad categories: Mining and Utilities; which includes infrastructure for the mining sector. While there has been a slowdown over the last 12 months, this is still an exceptionally strong market with much demand.

Equipment demands of the mining sector include dump trucks of 40t and above (both rigid and articulated), motor graders, large dozers such as CAT D8 and upwards, as well as all ranges of general crushing and screening equipment. For the utilities sectors, with projects like building the road infrastructure that

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Buying & Selling

supports the actual minerals extraction, contactors are demanding large diggers and excavators, wheeled pavers, all sizes of rollers and large 40t + trucks.

Preferred makes are predominantly CAT, Komatsu, Bomag for rollers, and Volvo for large dump trucks with the better condition equipment more in demand.

New Zealand is fast becoming a demanding force in the requirement for machinery but in the main is content to deal with Australia.

AfricA Africa is generally still a buoyant economy. In West Central Africa, currently Ghana and Nigeria have a good appetite for equipment. International contractors are working in that region and are bringing equipment with them. Popular machines include all makes of excavators and dozers from 20t upwards with ‘rippers’ such as CAT D6t’s being a preferred choice. The trend here is for more utilitarian machines that have dual uses where follow on contracts have different requirements.

Project crews in the region from China are also bringing their own home brands with them, which due to some reliability problems is creating markets for good European and US products. Quarrying equipment is benefiting from increasing demand, with crushers, screeners and conveyors in much demand, plus older wheeled loaders, large generators and compressors as well as older model agricultural tractors being popular.

Buying countries include Nigeria, Libya, Egypt, Syria, Tanzania, Ghana and South Africa. North Africa is still interested in smaller machines and general contracting tools such as backhoes, mini diggers, telehandlers, wheeled loaders, compressors and dump trucks. However, recent infrastructure changes and political upheaval in North Africa, which resulted in a complete plunge in the contracting sector, mean demand in this region is slow and it’s now a waiting game to see if previous appetites for machinery and equipment returns.

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September 2012

A changing construction scene in the Middle East means that some countries or even cities may have surplus late model equipment that could be better off re-deployed elsewhere.

chinA China has become a tour-de-force in the global market and is now shaping economies around the globe, so sellers should track China’s progress as its world shopping spree continues. For global projects China is buying better equipment, in addition to manufacturing equipment based on popular international designs for its home market. However the Chinese home market still has a great demand for less sophisticated equipment so opportunities exist for most makes and models of earlier kit.

AsiA PAcific A healthy economy is set across the Asia Pacific region with a robust construction sector set to last beyond 2015. Many ambitious infrastructure projects are either underway or planned including significant rebuilding after the flooding in Thailand last year.

The current star is Indonesia where new projects are demanding high volumes of equipment and needs are currently being satisfied by Japanese brands.

The region has an appetite for sophisticated products and as a result good quality machinery of the latest generation are much sought after, in particular the latest hydraulics, power drives and electronics, negating interest for older models.

With such a wide range of development infrastructure and regeneration projects underway the call is for an eclectic mix of machinery and equipment across the board. Bigger general construction machines including wheeled loaders, dozers, excavators and haulage equipment are in real demand while the infrastructure projects require small items such as excavators, backhoe loaders, mixing plants, pavers,

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Buying & Selling

tower cranes and piling rigs. However with plentiful local labour available ,smaller tools like mini diggers are not in demand.

IndIa / PakIstan At market, Indian interest is already being seen with smaller construction companies buying good used equipment; predominantly backhoes, telehandlers, compressors and mixers. Pakistan is a ready market for older equipment, with emphasis on items such as wheeled loaders and excavators. Make is not important at this stage and older, non computerised machinery is preferred. In the next five years India will invest (US) $1.2 trillion in infrastructure projects, including transport, irrigation, oil, gas and telecommunications, all of which will need equipment and machinery.

south amerIca With new infrastructure projects underway in the region, including the construction of 5000 km of highways in Brazil and four major initiatives worth an estimated US$ 30 billion in Columbia (including highways, seaports, airports, railways and river ways) Latin-America is really beginning to boom.

Heavy construction equipment and mining machinery is in real demand, with buyers from South America looking for quality excavators and other specialised plant, particularly from manufacturers like CAT and Hitachi. Some are saying Latin-America is the new Australia.

China is present in South America, predominantly Brazil, looking for natural resources and food commodities. Brazil is the world’s leading producer of cement, a product China needs for its continued economic growth. It is also evident that while certain better known international brands are preferred, the local market may not be able to justify their cost and so Chinese models are more palatable.

Other manufacturers like JCB have also committed to the region by setting up a large assembly plant in Brazil. JCB has fared well in Brazil, due to the popularity and versatility of the JCB 3C backhoe, making it a firm favourite on infrastructure works in the Brazilian interior where thousands of miles of secondary roads are being upgraded.

For those wishing to sell machinery and construction equipment to Latin-America countries, the market is shrouded in some mystery as to what is acceptable.

There are also market rumours as to how to trade within the sector and import restrictions are open to interpretation and certain criteria exists. However, the current consensus is that makes and models not

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available in South America can be imported; machinery used in the mining industry can be imported; and finally machinery may be manufactured or assembled in the region, which is why JCB established its large assembly plant in Sao Paulo, Brazil.

Elsewhere, Venezuela, for example, is embarking on a number of ambitious housing projects that will see over 50,000 high rise residences built each year.

This is calling for tower and mobile trailer cranes that can operate in confined spaces and this may be the precursor to similar housing projects across the whole South America region.

The used market is now truly global meaning that unwanted equipment can be easily transferred to other markets via an increasing range of OEM services, auctions and online marketplaces.

so In summary While construction and infrastructure work in Europe and the Middle East is currently in a lull and other established markets have specific equipment requirements, the real growth areas are the previously under industrialised nations like China, South America and India. Buyers can always be found for good quality equipment but a little more effort is now needed to identify them and if the equipment is presented well good prices can be achieved but the need to ship it internationally is on the increase – which is another growing market in its own right.

“IndIAn InTErEST IS ALrEAdy BEIng SEEn WITH SMALLEr COnSTrUCTIOn COMPAnIES BUyIng gOOd USEd EqUIPMEnT.”

Special Interview

A Kut AboVe CMME meets Tomas Kuta to discuss Volvo’s plans for the Middle East and its seriously impressive line-up for 2012/13.

V

olvo’s EMEA regional director is addressing an audience gathered from across his territory and he is keen to make sure that everyone gets the appropriate greeting.

“And we have a gentleman here from Saudi here today....welcome,” he smiles. “How do you say it again?” The reply comes back: as-salamu alaykum. “Ah yes of course!”

Kuta is the Czechoslovakia-born head of Volvo’s re-energised assault on the EMEA region which has had a new lease of life since the company shed Volvo cars to Ford. He beams energy across the room as he speaks, his accent perceptibly Czech but with an American-twang.

Once a professional skier, he crossed the iron curtain in 1980s and earned US citizenship in 1989. When Eastern Europe once again opened, he returned as head of Apple Computers in his native homeland before joining Volvo in 1997.

An athlete, global citizen, multi-lingual and approachable – he’s the sort of senior executive that

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September 2012

many in his position profess to being but seldom are.

Kuta first really made his mark on Volvo CE when he led its return to the Russian market in 1998 proving that it was possible to make sense of the vast country by balancing Volvo’s own dealerships with the independent dealer network.

As of 2012 Russia is the fastest growth market in the EMEA region for Volvo CE and the company is investing big in the country. Its factory in Kulaga close to Moscow is about to become the centre for a new excavator plant that will stretch of 20,000 sqm.

Due to open next year it will produce 20t to 48t range of machines at a rate of 2,000 units per year.

Kuta says that the factory will primarily be focused on serving Russia but could later down the line serve similar markets such as the Middle East: “We will see how this can be utilised for other parts of EMEA.” “I spent three years in Russia running our own dealership but we have now taken the next step and divested to a private dealership (Swedish company Ferronordic). They have 50 locations in Russia, the

Special Interview

Volvo’s Lorient demonstration featured a range of new equipment. The Swedish manufacturer has released more then 50 new machines in the past year to meet emission regulations and develop markets.

plan is to invest 700 million SEK by 2015. In 2008 we had 238 people and now it is over 500. It will be 1,000 by 2015.”

At its recent launch event in Lorient, France the company demonstrated a number of new machines such as the 50 ton class EC480D excavator, the A35F articulated hauler and the the L250G wheel loader.has released more than 50 new machines in the past year as it joins it peers in the race to meet new emission restrictions on engines. Despite the continuing fluctuation in the markets it has helped to buoy sales. In the first quarter sales increased by 17% to almost 18 billion Swedish crowns (the equivalent of nearly 2.1 billion euros) and the increase in operating income of 21% to the equivalent of 248.5 million euros and an operating margin of 11.8%.

Kuta enthuses: “It was one of our best ever quarters.”

He explains that the Middle East and Africa come under two separate logistics hubs – East and South.

He is sounds proud when he describes the EMEA: “Maybe I’m being subjective but to me it is the most diverse in the group. It has some the most mature and some of the fastest and growing.”

When asked which markets have surprised him in the past year, his eyes light up.

“I like positive!,” he says. “We have a number of markets that are doing very well. Yes, the Middle East Saudi Arabia, the UAE and Turkey has been very robust. And Russia is exploding. It grew 70% in the first quarter. However there you feel cautiousness because of fuel prices. Africa has been good overall but there’s been some slowdown because of Egypt and Libya. Algeria, Morocco, sub-Saharan Africa have been excellent. We see steady growth of 15%.”

He adds: “Europe was not a catastrophe but the outlook is so uncertain.”

“WE Don’T HAVE AnY ConVERSIon KITS AnD

SURpRISInGLY, So FAR, WE HAVE noT HAD Too MUCH CALL FoR IT.”

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According to Kuta, the total size of the construction equipment Middle East market is in the region of 30-35,000 units per year and Africa 17,000: “the growth rate is 30-35% in the Middle East and Africa 10-15%.”

The current landscape of machinery manufacturing sees multi-strand companies like Volvo, Caterpillar, Liebherr streaking to the horizon while others are struggling in their niches. In June Volvo up its stake in engine specialist Deutz from 6.7% to 25%. Kuta steers clear of suggesting the company is on the acquisition trail.

“If you look at mining for example, it is not a buyers market. In construction, you look at companies and they are doing very well too.”

The diverse nature of the EMEA market presents Volvo and Kuta with the not inconsiderable problem of servicing customers that will be needing its Tier 4 final engines and those like the Middle East and Africa that because of the high sulphur content will be unable to use the new machines.

“Everybody knows the technologies that will be available (such as SCR - selective catalytic reduction) but in terms of transportation between the regions, so far we cannot transport Tier 4 interim out of Europe. Especially to countries that do not have low sulphur fuel such as the Middle East and Africa.

“At the moment we don’t have any conversion kits and surprisingly, so far, we have not had too much call for it from customers. But we are prepared should it become a big question. I’m sure we can handle it.”

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Special Interview

CMME: FBA is currently working on one of the largest developments underway in Qatar, The New Doha Port Project. How important is it to be active when so much seems to be still in limbo in Qatar?

KHAliD Ali: The project is costing us in terms of the equipment, the manpower and of course I need to get the profit and income. However when you think about the experience and the media coverage, then it is for sure a good thing for us.

CMME: Qatar right now does seem a like a country where everyone is concerned about their profile and everybody wants to be seen.

KA: After the project finishes it will be a good thing for us. People will want to work with us.

Treading CeMenT

Khalid Ali of FBA speaks openly about the challenges of being in Qatar before the boom.

CMME: You’ve got the first TlB 130 (Putzmeister’s telebelt machine) in Qatar. How are you making sure that people get to hear about it?

September 2012

COnSTrUCTiOn

MiddLe eaST

35

Special Interview

KA: We have companies asking about it when they come to visit the site and are asking: what is this machine? How does it work? they’re taking photographs and admiring it. then they ask what is the company name?

CMME: With competition so intense and projects thin on the ground do you have to be flexible when assessing your costs during tendering?

KA: sometimes. But if you make a deal you must follow it. on some projects my people might be on site for five hours just waiting without working but you have to follow the contract.

CMME: Sounds like New Doha Port Project will be the perfect platform when the stadia, houses and hotels finally come to Qatar.

KA: We are taking this in stages. (until then) you must keep in work.

CMME: How do you make sure FBA has the right market intelligence?

KA: We are doing many kinds of research, looking on the internet, talking to other companies. you can check with the material suppliers.

CMME: What are the material prices like in Qatar to manage. It sounds very volatile.

KA: limestone aggregate was 38 now it is coming to 45, an increase of 7 riyal per cubic metre. how do you face it and pass it on to the customer? you make it 290 then it becomes 300. But then the customer has to pay because he needs it.

CMME: Do the fluctuations make it difficult to plan for the business?

KA: there is nothing sure about the future. you can’t trust what you hear. everyone is talking, talking, talking, even the government. they are doing the most talking, we will do, we will do! But i do have hope for the future.

CMME: I get the impression some agencies are more progressive than others? Ashaghal for instance seem to be really moving on the infrastructure.

KA: (laughs) i only concentrate on what is right for my work. other things i don’t care as much for, well unless it helps me shopping!

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“Qatar is a young country, its history is too modern. it is still learning.”

CMME: In terms of the materials sector I see similarities between Qatar and Saudi Arabia.

KA: saudi arabia is an old country and it is very organised. Qatar is a young country, its history is too modern. it is still learning. they need to go faster – from zero to ten! – but they must go step-by-step. maybe you have money here, but you might also not have the material, the manpower and sometimes they put in rules against what they decided.

CMME: With the state control cement production and restricting imports how does that affect your operation’s ability to react to market changes? Surely there will be point where capacity will be overtaken by demand?

KA: of course it could happen. there’s no cement from outside. For World cup 2022, the state of Qatar is changing, after five or six years there will be a new Qatar. 20 years ago there was no Qatar, how much it will cost no problem, time - very fast. how?

Well they don’t know.

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Product Focus

Raw power EVERYTHING YOU NEED TO KNOW.

page 49

SECTOR ANALYSIS

A batch analysis of the new generation of plant, pumps and trucks available in the cement sector hitting the market.

page 48

PREvENTATIvE MAINTENANCE

page 45

WHEEL GOOD

volvo’s MC60C is a

wheeled skid steer ideal for demolition, building and municipal work.

An essential guide to the top ten ways to ensure that your equipment is operating at its optimum ability in the field or on site.

page57 FIND A DEALER

CMME goes into Iraq to look at two of its better established dealers.

page 45 GRADE L FROM CHINA

LiuGong showcased its CLG418H Motor Grader along with many other top-selling machines at the M&T Expo in Sao Paolo in June.

page 46

A LOCAL LOADER FROM DOOSAN

Doosan claims its latest range of wheel loaders are more than capable desert dwellers.

September 2012

CONSTRUCTION

MIDDLE EAST

41

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New Products

T

he 21 LC 660 tower crane, available since July 1st, has already improved its features just after its official launch. The four versions of this tower crane (with maximum loads of 18, 24 36 and 48 tonnes respectively) finally have a jib length 4 meters longer than what was announced a couple of months ago, and the cranes are now offered with a maximum jib length of 84 meters.

With this upgrade, the 21 LC 660 tower crane, which was especially designed for large industrial, public works, mining and infrastructure projects, achieves a maximum jib length longer than most part of the tower cranes that are currently available in the market with similar characteristics.

Comansa has explained that it has lengthened the jib because, “at this moment, very few manufacturers can offer jib lengths longer than 80 meters in tower cranes with similar characteristics than the 21 LC 660, and even fewer have Flat-Top tower cranes with more than 360 tonne-meters”.

“Because of this, with its 84-meter-long jib, Flat-Top design, 660 tonne-meters and its highly competitive price, the 21 LC 600 showcases as one of the most attractive cranes on its segment.”

Furthermore, the jib sections of the 21 LC 660 can be assembled to achieve jib lengths every 5 meters until the jib length of 80 meters, which allows many combinations of jib lengths and loads.

Linden Comansa prefers The new CuT of iTs 21 LC 660 jib WHY GET IT? An infrAstructure god ...thAt grew 4m in 2 months.

sPEcIFIcaTIons VErsIon (MaxIMuM load)

Max. jIb lEnGTH

18 tonnes 39,680 lbs.

jIb-End load norMal

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Max. FrEE-sTandInG HEIGHT

84 meters 275.6 ft.

5,300 kg 11,684 lbs

5,830 kg 12,853 lbs.

82.4 meters 270.3 ft.

24 tonnes 52,910 lbs.

84 meters 275.6 ft.

4,500 kg 9,921 lbs.

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4,000 kg 8,818 lbs.

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75.4 meters 247.3 ft.

September 2012

CONSTRUCTION

MIDDLE EAST

43

22-25 April 2013 Jeddah Centre for Forums & Events Kingdom of Saudi Arabia Co-located with

Saudi Building & Interiors Exhibition

The region’s largesT ConsTrUCTion

eqUipmenT eXhiBiTion Following a successful 2012 event, the Construction Machinery Show, the largest construction machinery exhibition in the Gulf region, returns to Jeddah between 22-25 April 2013.

With the total value of awarded construction contracts reaching $72 billion in 2011 and with much more to come, the Construction Machinery Show is the ideal opportunity for buyers of construction machinery and heavy equipment to meet manufacturers, suppliers and distributors.

A total of 450 billion Saudi Riyals ($120 billion) will be spent on construction projects between 2012-2016, and much of the development is focused on turning

Jeddah into a world class city, making it the perfect location for the Construction Machinery Show.

The 2012 exhibition proved that Saudi Arabia is the most dynamic country in terms of construction in the region, drawing praise from exhibitors for the quality of his attendees and the number of deals signed on the show floor.

With over 20,000 sqm of space at the Jeddah Exhibition Centre dedicated purely to construction equipment the Construction Machinery Show in 2013 will once again stand out as an event where visitors come to buy.

We will be back in April 2013, Will you?

Find out more. Visit www.constructionmachineryshow.com Gold Sponsor The Construction Machinery Show and its entities are registered trademarks.

The Construction Machinery Show is held alongside the Saudi Building and Interiors Exhibition under the patronage of the Saudi Ministry of Municipal and Rural Affairs. Š 2012 Corporate Publishing International. All rights reserved.

Power and Lighting by

Organised by

New Products

DOOSAN lAuNChES whEEl lOADErS FOr MIDDlE EAST rEgION whY gET IT? Doosan continues to push loaDer Development ripe for region South Korea’s Doosan Group has introduced a new line up of wheel loaders based on the design of the previous Mega range.

Built to meet the requirements of clients in the Middle East and Africa region, the new Doosan DL250A, DL300A and DL420A wheel loaders offer bucket capacities ranging from 2.5 to 4.5 m³ to help users meet a variety of materialhandling needs from loading and transporting granular material to industrial, mining and quarrying applications.

The new DL250A loader is powered by a Doosan Tier 1 diesel engine, while the DL300A and DL420A models are fitted with Doosan Tier 2 engines.

The cabs in the new range are ROPS/FOPS certified, offering the operator 6% more volume in the DL2A50A and 11% more in the DL300A and DL420A models, as well as more visibility, improved air conditioning, a new instrument panel with enhanced layout for controls and switches.

Doosan also installed a

completely new steering unit in the DL250A model and an improved steering amplifier and accumulator in the DL300A and DL420A enable smoother steering.

A NEw grADE FOr lIugONg whY gET IT? cummins powereD roaD tripper major upgraDe to comfort

SPECIFICATIONS • Model: Motor Grader 418III • Engine Tier Level Stage IIIA • Rated Power (Net) 147 kW • Weight (kg): 15,500 kg

liugong showcased its Clg418h Motor grader along with many other top-selling machines at the M&T Expo in Sao Paulo in June. The machine, used for primary highway construction and road maintenance, offers the powerful Cummins 8.3 liter engine rated at 147 kw at 2300 rpm with max torque of 701.5 N.m. at 1400 rpm. The Cummins brand assures long engine life. with class-leading147 kw, the machine muscles its way through the toughest material and conditions.

As with all liugong machines, operator comfort, accuracy and safety receive the utmost attention.

The fully enclosed air-conditioned cab offers an adjustable control console so the operator can contour them to his needs.

The Clg418h has a spacious cab mounted on a viscous isolation mount system. This system provides a vibration-free environment with excellent visibility to the worksite. A standard grammer suspension seat makes sure the operator remains comfortable and alert. The Clg418h offers a high reliability hydraulic system. The load-sensing hydraulic system increases ease of precision operations using less fuel, and the dual circuit brake system ensures reliable braking in the event of a failure. The Clg418h uses worldclass hydraulic components and other world class suppliers, which affords long component life and proven durability. Power from the Cummins engine is transferred to a ZF/lg transmission with six forward and three reverse gears. The rear axle is equipped with a three-section driving axle with an automatic NO-SPIN self-locking differential.

The sealed roller circle provides much more accurate blade control than conventional open gear type of blade circle supports. This also means, other than grease, there is no maintenance, no shims and no adjustments, EVEr. Owners can also order the optional rear ripper/scarifier or front push blade for tough jobs. In all, the motor grader offers the power, force and durability operator’s worldwide need for the toughest construction jobs. liugong equipment is easy to own and easy to operate, as the company excels in providing features that customers demand, but also focuses on using only well-proven technologies that are easy to service.

The result is highly durable machines that stand up to the rigors of tough operating environments customers face.

SPECIFICATIONS: • Engine: SAE J1995, • Power gross: 127 KW @ 2,200 rpm • Operational weight: 14,200 kg STD • Bucket capacity: (SAE): 2.5 ~ 3.1 m3 (3.3 ~ 4.1 cu yd)

hAulOTTE uPgrADES ITS rT SCISSOrS whY gET IT? puts safety first But still fast to height French aerial work platform manufacturer, Haulotte Group has introduced new and upgraded versions of its C2668RT and C3368RT compact rough-terrain scissor lifts.

The two models have been fitted with Kubota Tier 4 diesels featuring better noisereduction and lower fuel consumption.

Haulotte also installed a new four-wheel drive

system to provide better rough-terrain capacity with 28cm ground clearance and automatic hydraulic differential lock that enable the lifts to climb steep slopes and work productively on uneven grounds.

Access to service the two redesigned machines have also been improved with the introduction of an enhanced hood closure and an additional trap door to the engine and components.

Haulotte has established its Middle East regional office in the Dubai Airport Free Zone.

SPECIFICATIONS: • Power: Kubota Tier 4 diesel • Drive: 4-wheel-drive • Fuel saving: -5% • Turning radius: 3.5m • Max Height: 26m

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New Products

THE MC70C gIvES vOlvO’S STEErS A lIFT

SANY STEPS uP MINI-Ex PrESENCE

WHY gET IT? Demolition Demon Heavy protection

WHY gET IT? KeepS it Simple promiSeD reliability Sany’s SY75C uses Isuzu motor, in line with EU Tier 2 Emission Standard, more powerful with lower fuel consumption and lower malfunction ratio. It features brand-new optimised Husco system for improved compatibility and grading ability, and it claims is 10% higher in working efficiency. Enhanced working implement as standard configuration brings reduced wear and improved durability. Advanced industrial control system simplifies operation. Brandnew fault diagnosis system lowers the cost for maintenance. The machine also has brand-new fault diagnosis system that Sany claims lowers the cost for maintenance.

SPECIFICATIONS: • Weight: 7.2t • Engine: Isuzu Tier III • Power: 40.5 kW @ 2,000 rpm • Speed: 3.5 km/h • Dig Depth: 4m • Dig Height: 7m • Digging Force: 56kN

The volvo MC60C, MC70C wheeled skid steer is a radial lift machine providing customers with new ways to conquer more applications.

Strong, durable and easy to maintain, radial lift path is the ideal design for ground engaging applications, and offers a better reach at mid height. Combined with a wide choice of tires, and an impressive selection of protection packages (Demolition, Waste & recycling, Forestry…) this makes

grOvE gETS rOugH IN SOuTH AMErICA WHY gET IT? tiereD to perfection Stronger baSe SPECIFICATIONS: • Max capacity: 60t • Boom height: 11-33.5m • Swingaway extension: 10.1 m • Extension inserts: 6.1 m or 12.2m • Counterweight: 6.5t

Manitowoc first unveiled the 65 ton Grove RT765E-2 Rough Terrain crane at Crane Expo way back in 2010. However since setting up manufacturing in Brazil the company The RT765E-2 replaced one of its most popular Rough Terrain cranes the RT760 of which it has sold over 2,000 units since its

launch in 2001.

760 maintaining its dimensions and much of its components.

However it has a new – stronger base boom section, structural upgrades to the chassis and superstructure frame, a new telescope cylinder, new lift cylinder, larger counterweight and most noticeable the

company’s new cab.

The cab, which is also fitted to the 150 ton RT9150E Rough Terrain, is noticeable for its much greater glazed area and improved ergonomics. It is being rolled out across the manufacturer’s range including the all truck cranes, Rough Terrains and the larger National Crane- boom trucks.

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

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the volvo MC60C, MC70C wheeled skid steer ideal for demolition, building and utility, landscaping and municipal work.

With the ability to use a wide range of attachments, such as buckets, pallet forks, cold planers, brooms, rock saws and much more, the versatility of the volvo Skid Steer loader makes it the perfect, safest all-rounder. The volvo MC60C, MC70C skid steer provides more opportunity for yearround profitability.

SPECIFICATIONS: • Engine: Perkins 404D-22T • rated output: 60 hp (45 kW) • Single speed: 12 km/h • Two speed: 5,6 / 11,5 mile/h (9 / 18,5 km/h) • Height to loader hinge pin: 3m • Overall length – with dirt bucket: 3.49m • Bucket width: 1.68m

Sector Analysis

Into the thick of it CMME takes a look at one of the hardest sectors in machinery cement.

F

or a sector that is considered – well, solid – 2012 has seen a substantial shift in the world of concrete. The storied infiltration of Chinese manufacturers into the German manufacturer’s realm as Putzmeister and Schwing joined Italy’s CIFA into the hands of foreign owners has captured headlines but the underlying theme is of a sector that still has a lot to offer in terms of technological progress.

On the fixed plant side of things, Liebherr demonstrated its new Mobilmix 2.5 mixing plant to the public for the first time at Intermat earlier this year.

This container-mounted system is primarily intended for mobile use on large construction sites. It is therefore ideally suitable for work at airports, on bridges, in tunnels or on main roads.

The Mobilmix 2.5 has a maximum output of 110 m³ of compacted concrete per hour.

The main components of the Mobilmix 2.5 are housed in strongly constructed containers. The new mixing plant is designed to be easy to assemble and according to the German company, all modules are ready to plug in, “so that the complete plant can be ready to operate in just a few days. Elaborate foundations are not needed: the container modules can be supported on steel foundations. Templates in different colours are supplied to align the steel foundations quickly and accurately.”

Once they have been erected, the container modules form a complete weather-protecting housing. Additional insulation can be specified as an optional extra for extremely severe climatic conditions. All sections of the plant are easily acces-sible from broad gangways.

The design of the Mobilmix 2.5 permits operation in tandem if required. In this case both mixing

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Sector Analysis

plants can be oper-ated conveniently from a single control point. The mixer systems are then run alternately. A tandem plant has an output rate of approximately 220 m³/h.

As for all other Liebherr mixing plants, an extensive range of optional extras is available for the Mobilmix 2.5. The plant can for example be extended by specifying admixture weighers, highpressure mixer cleaning, dust filter systems or water tanks. Sany’s purchase of Putzmeister has deflected interest from one of its best machines

to date, the 42-5, which has recently officially debuted in the Middle East.

CMME says officially as, in terms of what’s available in the market, it has the rare distinction of being tested here in the region and not just Europe. Too often, machinery has suffered here for being tested at temperatures well below those that are found in the field.

When you consider the impact to pouring that temperature can make it is such a shame that this is not done more frequently.

Back to the machine. While the 5-stage aspect of the boom is likely to grab attention, it should also be noted that the machine drops below the 32t threshold that may not be as much of a concern as in Europe in terms of access to highways but it does mean you get the benefit lower running cost, less downtime, etc. The machine has got some neat touches that should also prove practical in the field like the fluid cooler being installed into its support legs.

A 56m version of the machine is also imminent in the region, with Putzmeister having already sold several units. Already possessing a truck-mounted concrete pump with a 5-Section placing boom,

BASF unveils Middle East material The American University of Sharjah (AUS), a nationally and internationally accredited educational institution in the United Arab Emirates (UAE), has conducted a trial to test the effectiveness of corrosion inhibitors used in steel-reinforced concrete in construction.

Rheocrete 222+, a combined waterproofer and organic

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corrosion inhibitor from BASF Construction Chemicals, received top honours. The trial, after stringent review, has been accepted for publication in the International Journal of Electrochemical Science.

For BASF, this is industry recognition at a high level for a product that has proven itself in projects around the globe for over two decades.

Says David Bowerman of BASF Construction Chemicals’ Admixture Systems Division: “This trial by AUS puts the theory around corrosion inhibitors to the test and provides insight into the performance of different formulae. The results speak for themselves with regard to the capabilities of Rheocrete 222+, underlining the effectiveness of the product but also highlighting

the advantages of organic corrosion inhibitors over inorganic solutions - which is particularly relevant to construction in the UAE region.

“Ground water and chlorides corrode the steel in reinforced concrete, weakening structures.

Unless precautions are taken at design stage, structures are likely to require extensive repair to keep

them in service. In the Middle East, concrete frequently fails to meet its design life in the hot, humid, salt laden atmosphere.

Corrosion inhibitors can reduce the lifecycle costs of structures in aggressive environments and enhance their design life.

However, the effectiveness of corrosion inhibitors can vary, so selecting the right product is vital.”

Schwing upgraded its S43 model earlier this year.

The S 43 SX utilizes the exclusive RZ boom design with five-section versatility and 918-degrees of total articulation.

The new machine incorporates Schwing’s exclusive Super X Outriggers that set-up fast and provide a compact and stable platform for pumping. These curved front outriggers telescope out and around obstacles without extending past the truck’s front bumper allowing placement of the pump as close to the pour area as possible.

“The S 43 SX only requires a 27’3” outrigger spread (same front and rear) for exceptional stability. With low unfolding height of 28’6” the new model also offers versatility in low overhead situations. A 160-gallon water tank provides selfsufficiency for clean-up at the yard or on the job site,” says the company.

In a similar vein, Earlier this year South Korea’s Everdigm launched the 36ZX and 43CX-5, its new 36 m and 42 m Z-boom truck-mounted concrete placing booms. Both machines feature a closed circuit, free flow hydraulic system, and the boom can be controlled by a proportional remote control system.

The flagship in terms of the region is the 60CS-5 concrete pump.

Again featuring a 5-section and R-Z type boom it has a vertical reach of an impressive 59.3m and a horizontal reach of 55.3m. The company says that it also has a depth reach of 40.2m. Everything else is fairly standard including a delivery pipe with a diameter of 125mm, a 360-degree slewing range and swing out-riggers.

Still leading the way it terms of reach and perhaps now likely to hold the title for some

“ThE S 43 SX Only REquIRES A 27’3”

OuTRIggER SPREAd (SAmE fROnT And REAR) fOR EXCEPTIOnAl STABIlITy.”

time is Sany’s 86m concrete pump truck which can claim a number of true firsts, including the world’s first 7-section boom and the capacity to deliver pumping rates of 230 m3/h to 240 m3/h.

The pump beats Sany’s previous record by 14m and takes it way beyond the previous record by – you guessed it – Putzmeister.

The machine (which has 230-foot articulating boon that can be controlled remotely from more than a mile away and weighs 95 tons with a list price of over $1.5 million) was launched only in 2009.

Concrete technology has come a long way in a very short amount of time.

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

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Selling Kit

cure n a h t r on e ett e utilisati b s i ain on th n r st o i es le t c b pla ion profita reven oney anD

p

at mpanies m your oper y costs co es to keep er m in o h e. c c r a it u m c en t. wh r than on your t anD flee lly is bette Downtime t, equipmen nance rea n te la in p a m er of oth eventive uctive, pr anD proD

schedule in repairs Whether you use recommended manufacturer schedules or your own service programmes make sure maintenance is not skipped, forgotten or frankly ignored. Missed maintenance could cost time and hours sooner than you think.

Keep a record as soon as equipment comes in you should start recording its use. Whether you do it electronically or keep a hard copy make sure that every service, work hour, downtime, part replacement and failure is logged.

the daily grind construction is dirty work, and cleaning rotas and equipment checks should be part of the daily routine of the operator. equipment downtime can be much more expensive than meeting shift targets.

Top 10 tips to keep your kit Prevention is better than cure so CMME helps you design your own PM programme

ground support if you’re concerned that operators are cutting corners on daily maintenance checks, then appoint someone on the ground to take ownership and ensure it gets done.

train and gain good training makes for good habits. ensure that senior operators get the training necessary and take advantage of oeM and dealer training by putting senior operators on courses. they can then pass on what they’ve learned to other team members.

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Selling Kit

workPlAce surveys operators should know their equipment intimately and conduct regular formal or walk-by surveys to get feedback on machinery.

stock hAndling get control of consumables and parts such as tyres and filters by tracking their use.

Build a stock inventory with the emphasis on the most commonly used items to make sure you never go short.

A workin g definiti Preventiv on

of PM

e mainten ance inclu adjustme des tests nts, and P , measure arts rePla Prevent fa ments, c ement, Pe ults from rformed occurrin sPecificall g. y to

costing it uP is your equipment costing you money? cost up whether then it is cheaper to repair or buy a machine as it nears the end of its usefulness.

size MAtters Balance the needs of your contract with your ability to have the necessary service support, and size your fleet and plant inventory accordingly. don’t over stretch technician teams and work out what you can manage and when dealers and oeMs can assist.

keeP it uP(to)dAte oeMs are constantly upgrading equipment so keep checking for updates online or with dealers to see what improvements to can be introduce to your fleet.

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

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driving an indUstry 5 – 8 november 2012 Dubai World Trade Centre Be part of the region’s most interactive showcase of plant, machinery and vehicles PMV Live is the premier event for the construction machinery and vehicles industry.

Multi-million dollar equipment deals were signed at PMV Live 2011 and with more fantastic free to attend seminars and live demonstrations, PMV Live is an event you cannot afford to miss.

Register and save AED 50 by visiting

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Dealer Round-Up

Find me a dealer!

iraQ

Iraq is slowly emerging from the duldrums and CMME looks at its best dealers

Khudairi Group Al-Ghodwa for Trading Agencies

al-Ghodwa for TradinG aGencies Iraq Main brands: JCB, Massey Ferguson, Dynapac

www.alghodwagroup.com ContaCt: baghdad +964(1)7785894

Khudairi Group Iraq, Jordan, UAE Main brands: John Deere, Sany

www.khudairigroup.com ContaCt: Erbil: 964-7504-268784

The Khudairi Group recently entered a dealership agreement and sales contract with Sany International Development Limited. Sany is a global leader in the construction machinery industry, with vast products ranging from excavators, crawler cranes, truck cranes, and road construction machinery. Knowing that the Iraqi government is strongly committed to a nationwide infrastructure

reconstruction plan, Khudairi Group was determined to close the contract with Sany which will bring millions of dollars of heavy equipment and machinery into Iraq.

As investment in the infrastructure is necessary to develop Iraq’s rich petroleum resources continue to grow, Khudairi Group’s new relationship with Sany will position the group to efficiently support construction of large scale transportation and oil & gas infrastructure.

In addition to the Sany signing, Khudairi Group is the exclusive John Deere Construction Equipment Dealer in Iraq. Recently, Khudairi Group opened a new showroom in Erbil, Iraq, which showcases five new John Deere units.

The dealership now sells and leases new and used construction equipment, including backhoe loaders, dozers, motor graders, skid steers, and wheel loaders. Further, the company has opened sales offices and facilities in Baghdad and Basra to meet the maintenance and repair needs of all their clients.

When asked about these recent developments in Iraq, Mohammed Khudairi, VP of Khudairi Group, responded, “The Khudairi Group is excited to be a part of the growth efforts in Iraq. It is our hope that the new heavy machinery introduced into the country will kick-start construction efforts and help the nation flourish.”

Al-Godwha for Trading Agencies LLC. is a wholly owned subsidiary of Al-Ghodwa Group. It is an Iraqi registered and domiciled company with a capital of 1 billion ID. We have since the establishment in 1998 successfully supplied machines, backup and spare parts to all Iraqi sectors including governmental (ministries & state companies), private sector and NGOs. Our company is family owned by a successful Iraqi businessman & his sons.

Al-Godwha has grown dramatically since the establishment on 1998 depending on the well established trading & contracting business of the Al Ghaidan family (the owner) in raq. Today, AlGodwha is working with all Iraqi sectors including governmental, private, foreign organizations based in the country. AL GHODWA total numbers of employees are exceeding the (45) persons. They are all Iraqis working in the company headquarter & branches in the fields; management, administration, finance, consultancy, sales, technical & service. On the way of developing Al-Godwha position in the Iraqi market as one of the largest suppliers of “anything on wheels”; Al-Godwha successfully completed the acquiring of “WADI AL GHARY Company” a large local supplier of trucks and commercial vehicles and taking care of IVECO S.p.A.Iraqi dealership. By this acquisition Al-Godwha group is postioning itself as “a one stop shopping centre” for construction, agricultural & commercial trucks.

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

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The Last Word

ing for its Brazil is build predicted future and is rld’s fourth to be the wo omy. biggest econ

stances and set of circum a em se zil a prime ld ou It w d to make Bra re pi ns co ve ha coincidences development. d vestment and of culture an hot spot for in ent in terms er ff razil, di B ly ed st de va While ability. In st i’s ud Sa es shar the geography, it om stifled by last decade bo s it ’s most d ld or ha w it e le th whi d as one of ge er em s ha downturn ies. g robust econom en South America’s leadin be s terms of ay in w t al es s ch ha It ntinent’s ri co e th fited d an r be has also ne manufacture t the countr y bu ctor, s, se ce g ur in so lated bank natural re gu re ily av he re of a its rules on from a mixtu l relaxation of ua ad to gr a d an ve conspired social reform stment that ha ve r in fo d ns an io e it foreign trad active propos the most attr . nd make it one of pa ex rs looking to ocess manufacture tr y is in the pr un co e th ly nt d ue an eq s ns ie Co h countr ade pacts wit tr g large in ng ri ag cu ur se co of GCC, and en e th e as ch B su ar and JC ar region’s e th f o ch as Caterpill rs su ket. e ar rs k m re e a tu th m ac manuf r presence in ei th Machiner y g in ild sease of focused on bu – the Brazil h American di aditional Sout tr omy as its e world rejoice on Th ec e y ta s drag on th a to ill st re is countr y in e on h corrupti least corrupt boom is th 77 ’s ld or ew dex attests. ranking as th ional’s 2011 in at rn te In cy en aking legal the Transpar is gradually m t en ls m rn ve ber of scanda But the go angles a num nt ons se ti di ec it el as 05 in-roads in the 20 ng xi fi te ch vo d ge rm Delta whi including alle nstruction fi t co os t m ns r ’s ai te ld ag af or w ium and the case as one of the Maracana Stad kets razil’s status finishing the achinery mar s af ter t m or ou ct on d ti ra lle nt uc pu tr co ns r five able to pay he un ot important co y an dl t ge as le le bt al it was bling de s. inue for at of illegal gam aled that it is set to cont ve es ri re t se a en ’s two largest g m in rn runn e gove for the world ay tl . ou re e tu years af ter th th s uc infrastr ion from long In many way plans verted attent $49 billion on di d ed s in en ha tl sp ts power ou to f en s ef ev plan ouss security and spor ting ident Dilma R dams, water 0 km of rail on 00 ture.

8, ng fu d di l’s an Brazilian pres en s zi term sp tion of Bra 0 km of road da 00 ch un 8, hi fo r w e fo k, th th or rm astic need last mon uction w which will fo of s are also in dr y. The constr tr ea ns ar io un e n ct co se ba e n ur th d ze across founded on th and a do Its cities an ill need to be ars, ne highways w ni ye at e ve th ud fi t cl xt en in ne m ill w er the of invest take place ov scene too. ent in the the world’s ational bond railways, will dget to be sp rn bu te e in th on track to be of de lf ns io ai ha R m e an re th th it d e ys or an with m p in 2014 Roussef f sa .

FIFA World Cu omy by 2030 . run up to the th largest econ 16 ur ed to be self20 fo ov in pr es s m ha Ga el c e pi od th m m r ly n O fo the lia o g zi ir n ra di ne B n Ja “The t transfers to es ted that fu r governmen from ge e d new ig m te B co ea g. l Roussef f sugg cr in il d rc w an reinfo nstruction nsumption co co re ed u es ct nd u nt pa tr infras ncial ince iv poor have ex stment. Fina s ment. ve y’ st tr in ve r un in fo s e co ic ie e at it bl pr iv nd th d pu opportun ing up to expa t and increase ivate d “We are team ate investmen ople and its pr ut capacity an iv pe tp pr s r it ou fo t fi l’s zi ne ra be B to ed , is in re y er ra tu la st ve ow fa infrastruc cades of de investment ha onomy can gr of f a debt of de so that the ec , fastoussef f said.

R ty l’s t vi zi ti en sector, to pay ra uc id B y es od pr pr gistics,” ers ation. Toda lo fl ak in m in e t ned ne iv en ss hi m ce ac st su m inve th, ts self- stai without ex rted last mon market suppor er to grab r um t he ns bu ot l co As CMME repo zi an g e Bra growin ouring over on ent not just in d news have been clam omic developm h yet more ba on it ec W l. zi

ra a .”

B in e was r region market share ust – first ther throughout ou she’s right. ing China in Aug in of t m will be hoping e ou ry th g st w in du m no in d co e an , Th on ti construc zil is at the slow-down in tougher - Bra g in tt ge is industry tin America by ajor push in La m a of t on fr fore turers.

The Middle East most manufac et in 4 billion budg $5 e th is hot!

To put g er in wor th consid context it is Caterpillar’s CEO Doug t l spend is no that the tota Oberhelman told newspaper reporters h of the close to a tent at the opening of its newest factory in i Saud spending that Texas last month (a facility that in itself ned for its an pl s ha is being geared up to serve both the Arabia ucture and North American and South American own infrastr ramme. markets) that the Middle East market housing prog is “still very hot right now”.

So why are rs so intent on manufacture o ol op in Sao Pa setting up sh i? ud and not Sa

! l i s a r B , a Viv

B

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